NewDay Earnings call details: Date: Thursday 15 June Time: 14:00 - PowerPoint PPT Presentation

NewDay Earnings call details: Date: Thursday 15 June Time: 14:00 BST Quarter-end 31 March 2017 Participants dial in: (+44) [0] 1452 554 265 0800 694 1630 (UK Free) ID: 40552993 Results presentation

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Presenters James Corcoran Paul Sheriff CEO CFO 3

Agenda / Contents 1 Key highlights 2 Business performance 3 Financial results Q&A 4 Appendix 5 4

Key highlights Financial: 1 • Adjusted EBITDA of £25m, 19% higher than Q1 2016 • Adjusted EBITDA to pro-forma corporate cash interest expense 3.2x (Dec-16 3.1x) Own-brand: • 2 Continuation of controlled growth with account acquisition running at c.400k p.a. • Year on year receivables growth of 36% to £1,136m Co-brand: • 3 Acceleration of growth seen in 2016 with year on year growth in receivables of 9% to £667m • Launch of Amazon in Q1 sees annualised run rate of total Co-brand new accounts increase to c.660k Credit: • Group impairment rate of 11.4% in Q1, 1.8% higher than Q1 2016, primarily as a result of planned changes in mix of business 4 (1.4%) along with an increase in IVA’s (Individual Voluntary Agreement’s), (a trend seen across the industry) and a rise in customers on repayment plans (0.4%) Regulatory: 5 • Final PPI rules published with no impact on overall provision • Reviewing CCMS consultation paper on persistent debt (consultation period with FCA ends 3 July) 5

Stable new accounts origination and maturing average balances providing RAI growth New accounts origination Growing average balances Receivables growth (‘000) (£) (£m) 1,815 1,803 1,287 1,279 1,161 1,449 1,023 1,021 1,027 667 722 614 632 629 682 417 397 363 1,136 1,093 835 398 389 341 2015 2016 Q1 2017 LTM Mar-16 Dec-16 Mar-17 Mar-16 Dec-16 Mar-17 Own-brand Co-brand Own-brand Co-brand Own-brand Co-brand Risk-adjusted margin Risk-adjusted income 262 256 (£m) 18.7% 18.4% 16.7% 207 122 119 113 14.6% 14.9% 14.1% 137 140 94 2015 2016 Q1 2017 LTM 2015 2016 Q1 2017 LTM Own-brand Co-brand Own-brand Co-brand 6

Own-brand: Continued controlled growth and stable margins provide growing returns Own-brand key highlights Strong organic growth New accounts (‘000 ) Gross receivables (£m)  Current run rate c.400k new accounts per annum 389 398 1,093 1,136 341 150 157 835  Receivables growth of £301m in the 12 months to March 2017, 787 116 122 64 175 driven by the open book 184 986 936  Risk adjusted income of £33m in Q1 in 2017, LTM of £140m 277 276 273 660 603  Risk-adjusted margin on the open book has dropped 0.3% to 2015 2016 Q1 2017 LTM Dec-15 Dec-16 Mar-16 Mar-17 12.3% for the 12 months to March 2017, due to higher impairment rates aqua marbles Open book Closed book Income growth underpinned by strong margins  Expansion of healthcheck campaigns, helping to educate customers on financial wellbeing Risk-adjusted income (£m) Risk-adjusted margin • For the 12 months to March 2017, 63% of customers 140 137 received a credit line increase 25.2% 25.2% 41 42 • 94 For the 12 months to March 2017, 58% of reprices were 20.9% downwards 41 99 95 53 12.6% 12.3% 11.7% 2015 2016 Q1 2017 LTM 2015 2016 Q1 2017 LTM Open book Closed book Open book Closed book 7

Co-brand: Improving margins combined with growth of new retailers Co-brand key highlights Open book growth (gross receivables in £m) 92.1% 96.0% 92.7% 96.1%  Open book receivables returned to growth during 2016, with 722 £72m growth in the 12 months to March 2017 684 667 614 29 26 54 45  Improving RAM reflecting continued strong underwriting and growth of good credit risk revolving balances 693 630 641 569  Risk-adjusted income of £33m in Q1 2017, LTM £122m Dec-15 Dec-16 Mar-16 Mar-17  Step change growth in online account bookings in Q1 (c.3x growth in new online account bookings) Open book Closed book % Open book  Following the launch of TUI in Q4 2016, Amazon launched in Q1 Successful integration delivering improved profitability 2017 with Q2 already seeing accelerated growth and additional Risk-adjusted income (£m) Risk-adjusted margin Amazon products due in H2 18.6% 18.8% 122 17.7% 119 113 6 6 8 116 113 105 2015 2016 2017 Q1 LTM 2015 2016 2017 Q1 LTM Open book Closed book Open book 8