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NewDayHalf-year ended 30 June 2017

Results presentation

Earnings call details:

Date: Wednesday 9 August

Time: 14:00 BST

Replay dial in: 0800 032 9687 (UK freefone)

0207 136 9233 (UK direct)

ID: 70390493

Presenters

James Corcoran

CEO

Paul Sheriff

CFO

2

Important disclaimerThis presentation has been prepared by NewDay Cards Limited on behalf of NewDay Group (Jersey) Limited (the “Company”) on a confidential basis solely for information purposes. For

purposes of this notice, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on behalf of the

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this Presentation.

All financial information contained in this Presentation relates to the unaudited consolidated financial results of the Company (and not, except where expressly stated to the

case, NewDay BondCo plc). The financial information contained in this Document has not been audited, reviewed or verified by any independent accounting firm. All non-financial

information contained in this Presentation relates to the business, assets and operations of the Company together with its subsidiaries and subsidiary undertakings (the “Group”). Certain

financial data included in this presentation consists of “non-IFRS financial measures”. These non-IFRS financial measures, as defined by the Company, may not be comparable to similarly-

titled measures as presented by other companies, nor should they be considered as an alternative to the historical financial results or other indicators of the Company’s cash flow based on

IFRS. Even though the non-IFRS financial measures are used by management to assess the Company’s financial position, financial results and liquidity and these types of measures are

commonly used by investors, they have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of the Company’s financial

position or results of operations as reported under IFRS. The inclusion of such non-IFRS financial measures in this Presentation or any related presentation should not be regarded as a

representation or warranty by the Company, any member of the Group, any of their respective affiliates, advisors or representatives or any other person as to the accuracy or completeness

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achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements

are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the future. You acknowledge that

circumstances may change and the contents of this Presentation may become outdated as a result.

The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect material developments that

may occur after the date of this Presentation. The information and opinions in this Presentation are provided as at the date of this Presentation and are subject to change without notice.

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otherwise) for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation, or any action taken by you or any of

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transmitted into such jurisdiction.

3

Agenda / Contents

1 Key highlights

2 Business performance

3 Financial results

4 Q&A

5 Appendix

4

Key highlights – key bond ratios all improving in H1

1

2

4

Financial:

• Adjusted EBITDA of £54.3m, 16.8% higher than H1 2016 (H1 2016: £46.5m)

• Adjusted EBITDA to pro-forma corporate cash interest expense 3.6x (Dec-16 3.1x)

• Pro-forma net corporate senior secured debt to adjusted EBITDA 2.9x (Dec-16 3.1x)

• Completion of a £227.8m Own-brand ABS issuance in early July

Own-brand:

• Continuation of controlled growth with account acquisition running at c.400k p.a.

• Year on year receivables growth of 30.0% to £1,185.1m

Credit:

• Group impairment rate of 11.5% in H1 2017, in line with Q1 2017 (11.4%)

3Co-brand:

• Stronger growth with year on year increase in receivables of 11.8% to £699.1m

• Launch of Amazon with 39,000 accounts in H1 sees annualised run rate of total Co-brand new accounts increase to c.660k

5

5Regulatory:

• Awaiting final outcome of CCMS consultation paper on persistent debt, no change since last update

New accounts origination Growing average balances Receivables growth(a)

Risk-adjusted margin Risk-adjusted income

341 389 390

682 632 637

1,023 1,021 1,027

2015 2016 H1 2017 LTM

(‘000)

Own-brand Co-brand

1,2001,287 1,335

369 397 425

Jun-16 Dec-16 Jun-17

(£)

Own-brand Co-brand

912 1,093 1,185

625

722 6991,537

1,815 1,884

Jun-16 Dec-16 Jun-17

(£m)

Own-brand Co-brand

94137 142

113

119 124

207

256 266

2015 2016 H1 2017 LTM

(£m)

Own-brand Co-brand

14.6% 14.9%13.3%

16.7%18.4% 18.6%

2015 2016 H1 2017 LTM

Own-brand Co-brand

6

Stable new accounts origination and maturing average balances

providing RAI growth

(a) Total receivables as at 30 Jun was £1,889m, which includes receivables relating to the Unsecured Personal Loans business

Income growth underpinned by strong margins

Own-brand: Continued controlled growth

603

936742

1,039

184

157

169

146

787

1,093

911

1,185

Dec-15 Dec-16 Jun-16 Jun-17

Open book Closed book

Gross receivables (£m)

277 273 272

64 116 118

341389 390

2015 2016 H1 2017 LTM

aqua marbles

Strong organic growth

Risk-adjusted income (£m) Risk-adjusted margin

11.7% 12.6% 11.3%

20.9%25.2% 24.7%

2015 2016 H1 2017 LTM


53

95 103

41

42 3994

137 142

2015 2016 H1 2017 LTM


New accounts (‘000)

Own-brand key highlights

Continuation of run rate c.400k new accounts per annum

Receivables growth of £274m in the 12 months to June 2017,

driven by new accounts and open book growth

Risk adjusted income of £142m for the 12 months to June 2017,

4% higher than FY 2016

8% growth in open book risk adjusted income for 12 months to

June 2017 compared to FY 2016 with closed book declining

income in line with expectations

Risk-adjusted margin on the open book of 11.3% for the 12

months to June 2017, due to higher impairment rates

Initiated independent feedback from customers on Trustpilot with

very positive scores of 8.7% from aqua and 9.1% from marbles

7

Co-brand: Momentum building with growth of both existing and new

retailers

Open book growth (gross receivables in £m)

630 693587 676

5429

38 23

684 722625

699

Dec-15 Dec-16 Jun-16 Jun-17


96.7%93.9%

Successful integration delivering improved profitability

Risk-adjusted income (£m) Risk-adjusted margin

105 113 119

8 6 5113 119 124

2015 2016 H1 2017 LTM


17.7% 18.6% 18.6%

2015 2016 H1 2017 LTM

Open book

% Open book

96.0%92.1%

Co-brand key highlights

Open book receivables continue on their growth trajectory, with

£89m growth in the 12 months to June 2017, £76m from existing

retailers (13% growth) and £13m from new retailers

Stable RAM reflecting continued strong underwriting and growth

of good credit risk revolving balances

Risk-adjusted income of £124m for the 12 months to June 2017,

4% higher than FY 2016

New accounts of 309,000 (H1 2016: 305,000), including 39,000

Amazon accounts

Following the launch of TUI in Q4 2016 and Amazon in Q1 2017

Q2 has seen strong growth and additional Amazon products are

due to be launched in H2

Continued growth in online bookings in 2017 with 64,000 online

accounts booked in the first half of the year (up from 32,000 in

the whole of 2016)

8

231

412

459

136161 165

2015 2016 H1 2017 LTMIncome Costs

Servicing cost / average receivables

Consistent improvement in servicing efficiency

Income growth exceeds costs growth

Operating highlights

Continued investment in improved functionality and customer

service

Income is growing over four times faster than costs, leveraging

the scalable nature of the business

NewDay Way (lean programme) further embedded across

operational areas driving process and efficiency improvement

Customer satisfaction remains very strong with transactional

NPS scores at +65 for Own-brand and Co-brand

Strong complaints performance maintained at 1.3 complaints per

‘000 customers

9

Income growing 4.5 times faster than costs

4.9%4.7%

4.5%

2015 2016 2017 H1 LTM

2.5%

Improving cost income ratio

42.4%

39.0%

35.9%

2015 2016 H1 2017 LTM

£m 2016 H1 2017 H1 2016LTM

Jun-17

Interest income 181.6 229.8 393.0 441.2

Cost of funds (13.6) (18.4) (30.3) (35.1)

Fee income 24.7 27.6 49.7 52.6

Total income 192.7 239.0 412.4 458.7

Total impairment (68.8) (105.6) (156.6) (193.4)

Risk-adjusted income 123.9 133.4 255.8 265.3

Servicing costs (44.8) (50.1) (92.3) (97.6)

Collections fees 12.9 13.8 25.7 26.6

Investment costs (23.1) (22.5) (52.3) (51.7)

Underlying contribution 68.9 74.6 136.9 142.6

Salaries, benefits & overheads (23.0) (23.0) (42.0) (42.0)

Depreciation & amortisation 0.6 2.7 1.4 3.5

Adjusted EBITDA 46.5 54.3 96.3 104.1

Average gross receivables 1,477.7 1,834.0 1,566.9 1,737.2

Gross interest and fee yield (%) 27.9 28.1 28.3 28.4

Cost of funds (%) 2.3 2.4 2.4 2.4

Impairment (%) 9.3 11.5 10.0 11.1

Pro-forma net corporate senior

secured debt to adjusted EBITDA(a)4.1x 2.9x 3.1x 2.9x

Adjusted EBITDA to pro-forma

corporate cash interest expense(a) 2.7x 3.6x 3.1x 3.6x

Underlying cost to income ratio improving

EBITDA interest cover

Growing adjusted EBITDAHistorical performance illustrates growth potential

(a) Metrics for H1 2016 are pro-forma to show the ratios had the senior secured bond been in place during the

period 10

Group income statement

96.3104.1

46.554.3

2016 LTM Jun-17 2016 H1 2017 H1

39.0%

35.9%

40.5%

34.2%

2016 LTM Jun-17 2016 H1 2017 H1

3.1x3.6x

2.7x

3.6x

2016 LTM Jun-17 2016 H1 2017 H1

(a) Working capital includes other assets, restricted cash, other provisions and other liabilities

(b) Exceptional costs in 2017 relate to the transaction fees associated with the acquisition. These costs have been

excluded from the adjusted LTM numbers above. Residual exceptional costs relate to non-recurring project costs

Working capital movements are predominantly driven by:

o Changes in restricted cash balances as the Group’s funding

structure has developed

o Changes in operational settlement accounts as a result of

transitioning Own-brand settlement process in house

Growth in receivables funded by drawdowns under financing

facilities as well as internal cash flow generation

Q1 2017 saw a number of expected costs associated with the

acquisition by funds advised by Cinven and CVC together with

costs related to raising the senior secured bond. The cash flow

is shown net of these costs on the rightmost column

In addition to free cash flow available for debt service, there was

undrawn capacity under the VFN of £396m at Jun-17 to provide

further liquidity, of which £24m was available but had not been

drawn down as at 30 June 2017

The reduction in net financing cash flow is mainly driven by the

growth in the portfolio during the period

CommentsSummary cash flow statement

11

Group cash flow

£m 20162017 Jun -

LTM

2017 Jun - LTM

Adjusted(b)

Adjusted EBITDA 96.3 104.1 104.1

Impairment provision build 19.6 25.5 25.5

Adjusted EBITDA excluding change in

impairment provision115.9 129.6 129.6

Change in working capital(a) (5.9) (12.2) (12.2)

PPI provision utilisation (12.4) (10.7) (10.7)

Capex (5.4) (10.7) (10.7)

Tax paid (1.4) (2.3) (2.3)

Exceptional costs(b) (3.7) (19.8) (5.2)

FCF available for growth and debt

service87.1 73.9 88.5

(Increase) in gross receivables (364.4) (377.1) (377.1)

Net financing cash flow (ABS) 392.4 372.8 372.8

Undrawn liquidity available from VFN 4.7 24.0 24.0

Fully leveraged FCF available for debt

service119.8 93.6 108.2

Highlights

Pro-forma LTM net corporate senior secured debt to adjusted

EBITDA 2.9x (Dec-16 3.1x). Adjusting for undrawn available

liquidity from the VFN, this ratio would be 2.7x (Dec-16 3.0x)

Continued strong cash generation as a result of operating

performance and stable funding

A number of exceptional cash flow items associated with the

acquisition and bond issuance

Deleveraging through cash and profit growth

12

Strong cash flow generation leading to continued de-leveraging

£m 20162017 Jun-

LTM

Fully leveraged FCF available for debt service 119.8 93.6

Debt service - cash payments - (2.8)

Equity raised for acquisition bonus net of payments - 5.0

Net cash proceeds from senior secured debt - 412.1

Funding received via shareholder loans - 593.9

Purchase of LuxCo - (990.5)

Distributions (60.0) (60.0)

Net increase in unrestricted cash (fully leveraged) 59.8 51.3

£m31-Dec 30-Jun

2016 2017

Pro-forma senior secured debt 425.0 425.0

Unrestricted cash (128.8) (122.0)

Pro-forma net corporate senior secured debt 296.2 303.0

Pro-forma net corporate senior secured debt to adjusted

EBITDA ratio3.1x 2.9x

Undrawn liquidity available from VFN 4.7 24.0

Adjusted pro-forma net corporate senior secured debt to

adjusted EBITDA ratio3.0x 2.7x

91.3% 89.8%

Dec-16 Jun-17

Co-brand

Advance rate

82.7% 82.8%

Dec-16 Jun-17

Own-brand

Advance rate

Cost of funds

300 300

565

250

175

550 60475

850

625

250

2017 2018 2019 2020

Issued bonds VFN

(£m)

Key funding highlights

Group cost of funds remains stable at 2.4% for H1 2017 (LTM

2.4%). Increase in Own-brand cost of funds relates to the impact

of selling BB bonds in Q4 2016

Debt profile, excluding senior secured notes, remained

unchanged at 30 June 2017

Completion of a £227.8m Own-brand ABS issuance in July in

line with our funding plans

Post Own-brand ABS issuance in early July, approximately 18

months of Own-brand growth funding available(b)

Executing funding plan for remainder of 2017

Debt maturity profile (a) (excl. senior secured notes)

13

Consistent debt maturity and stable cost of funding

(a) Debt maturity profile above relates to total capacity under VFNs and total face value of issued bonds

including amounts retained by NewDay as at 30 June 2017 and excludes ABS issuance in July 2017

(b) Assumes ABS and VFN refinancing of existing debt

Cost of funds

2.0%

Cost of funds

1.7%

2.4%

1.8%

Breakdown in group impairment movementKey credit drivers

14

Group impairment rate has increased by 2.2% in H1 2017 driven by

portfolio mix, one-off items in the prior period and performance

The Group impairment rate increased from 9.3% to 11.5% from H1

2016 to H1 2017. This increase was driven by:

0.6% due to the proportion of the Group comprising Own-

brand receivables, which attracts a higher impairment rate

than Co-brand, increasing year on year to 63% (Jun-16:

59%)

0.6% due to the proportion of the Own-brand receivables

that related to open book compared to the closed book

increasing year on year by 6%

0.5% due to the inclusion of two one-off adjustments in the

H1 2016 results

0.5% due to the underlying performance, mainly as a result

of an increase in IVAs as seen across the industry together

with an increase in customers on repayment plans, in line

with the update provided in Q1

On a quarterly basis, Group impairment increased to 11.7% in Q2

2017 from 11.4% in Q1 2017 predominantly driven by mix of the

portfolio discussed above

9.3%

11.5%

0.6%0.6%

0.5%0.5%

H1'16 Own-brand /Co-brand mix

Own-brand Open /Closed mix

H1'16 one offs Underlyingperformance

H1'17

15

Excess spread (rolling 3-month average)(a) Commentary

Significant excess spread provides cushion against an increase in

charge off rates, a decrease in yield and / or an increase in LIBOR

We monitor the excess spread and all other triggers and can

deploy multiple operational levers (for example, adjusting portfolio

growth or repricing)

Own-brand charge off performance has improved to 14.4% in

June 2017 following a slight tick up seen in March and April 2017

(Apr: 15.6%, May: 15.8%)

Slight reduction in Co-brand charge off rate during the quarter

from 3.3% to 2.9%

Gross annualised charge-off rate

(a) Excludes the VFNs from the Master Trusts and the secondary funding facilities as they are not directly comparable. The VFNs are revolving in nature and the inter-month drawings on those notes would impact calculations of

excess spread, which are based on month-end balances. The excess spread for the following series, as calculated in June 2017 for the rolling 3-month period, are: NewDay Funding Secondary Funding Facility Senior VFN –

18.84%; NewDay Funding Partnership Master Trust, Series 2014-VFN – 10.05%; and NewDay Funding Master Trust, Series 2015-VFN –12.48%.

Source: ABS Investor Reports available on NewDay website as of July-2017

Report Date

Report Date

Significant and consistent excess spread and stable loss performance

0%

5%

10%

15%

20%

25%

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17

ND Funding | Series 2015 - 1 ND Partnership | Series 2014 - 1ND Funding | Series 2015 - 2 ND Partnership | Series 2015 - 1ND Funding | Series 2016 - 1

0%

5%

10%

15%

20%

25%

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17

ND Funding ND Partnership

Appendix

Underlying earnings adjustments

All adjustments from adjusted EBITDA to Statutory PBT are consistent

with Q1, with no additional exceptional costs related to the transaction

fees associated with the acquisition

Other costs: primarily consist of a £19m increase in PPI provision taken

in 2016, reflecting expected increased claim rates across the industry

following the proposals for the new rules and guidelines relating to PPI

complaints handling set out in the FCA’s consultation paper “CP16/20:

Rules and guidance on payment protection insurance complaints:

feedback on CP15/39 and further consultation” issued in August 2016

All colleague acquisition bonus: reflecting a bonus paid to colleagues

relating to the recent acquisition

Exceptional costs: relating to the transaction fees associated with the

acquisition by Cinven and CVC in January 2017.

Amortisation: reflects the amortisation of the intangible assets

recognised on the acquisition by Cinven and CVC in January 2017

Interest on shareholder loans: reflects the interest cost of 12% on the

shareholder loan of £594m, issued as part of the acquisition by Cinven

and CVC on 26 January 2017

Fair value unwind: reflects the amortisation of a fair value adjustment

on the Group’s acquired portfolios

Key descriptions

18

Underlying earnings

(a) Note that the statutory loss before tax of £(31.3m) in 2017 H1 is on a segmental basis as disclosed in the quarterly

consolidated financial information. Statutory loss before tax on the face of the income statement is £(41.6m) (£(45.9)m after

tax) reflecting the period from 27th January to 30th June 2017 only. All numbers in this presentation reflect results from 1st

January to 30th June on a proforma basis

£m 2016Jun 2017-

LTM2017 H1 (a)

Adjusted EBITDA 96.3 104.1 54.3

Other costs (18.4) (19.9) (2.9)

All colleague acquisition bonus (8.9) (11.0) (2.1)

Exceptional costs - (10.7) (10.7)

Total non-recurring costs (27.3) (41.6) (15.7)

Depreciation and amortisation including

amortisation of acquisition intangibles(1.4) (24.2) (23.4)

Senior secured debt interest and

related costs- (15.5) (15.5)

Interest on shareholder loans - (30.5) (30.5)

Fair value unwind 5.8 1.5 (0.5)

Statutory PBT / LBT 73.4 (6.2) (31.3)

Taxation (1.7) (4.9) (4.3)

Statutory PAT / LAT 71.7 (11.1) (35.6)

£m 2016 H1 2017 H1 2016LTM

Jun-17

Interest income(a) 117.5 158.9 260.8 302.2

Cost of funds (8.1) (12.7) (18.5) (23.1)

Fee income 15.5 19.2 31.4 35.1

Total income 124.9 165.4 273.7 314.2



Servicing costs (16.3) (22.4) (35.1) (41.2)




Average gross receivables 841.7 1,141.2 920.0 1,067.3


Impairment rate (%) 14.2 16.8 14.8 16.2

RAM (%) 15.5 12.2 14.9 13.3

£m 2016 H1 2017 H1 2016LTM

Jun-17

Interest income(a) 64.1 70.8 132.2 138.9

Cost of funds (5.5) (5.5) (11.3) (11.3)

Fee income 9.2 8.4 18.3 17.5

Total income 67.8 73.7 139.2 145.1



Servicing costs (27.0) (27.0) (54.3) (54.3)




Average gross receivables 636.0 691.1 646.9 669.1


Impairment rate (%) 2.9 2.8 3.1 3.1

RAM (%) 18.4 18.5 18.4 18.6

Co-brand income statementOwn-brand income statement

(a) Excludes fair value unwind19

Underlying earnings by segment

Increase in receivables driven primarily by growth of the Own-

brand open book

Conservative provisioning with impairment coverage increasing

from 5.6% of gross receivables in June 2016 to 5.9% in June

2017

Fair value of total assets following the acquisition introduced

£396m of intangibles, primarily relating to the customer and

retailer relationships, the brand, trade names and intellectual

property

Evolution of gross receivables (£m)Summary balance sheet

Key highlights

20

Group balance sheet

£m Jun-16 Dec-16 Jun-17

Gross receivables 1,536.5 1,815.2 1,888.7

Bad debt provisions (85.5) (104.7) (111.0)

Other 32.7 49.5 61.2

Net receivables 1,483.7 1,760.0 1,838.9

Restricted cash 34.0 39.8 40.9

Unrestricted cash 94.7 128.8 122.0

Intangibles - 4.0 380.1

Goodwill - - 275.3

Other assets 49.1 74.1 57.7

Total assets 1,661.5 2,006.7 2,714.9

Asset-backed bonds 975.8 1,279.1 1,267.4

Wholesale funding 260.3 290.3 327.4

Senior bonds - - 435.7

PPI provision 43.9 56.4 51.4

Other provisions 5.0 12.2 6.3

Other liabilities(a) 55.5 69.9 48.2

Shareholder loans - - 624.4

Total liabilities 1,340.5 1,707.9 2,760.8

Shareholders' equity / (deficit) 321.0 298.8 (45.9)

Total liabilities and equity 1,661.5 2,006.7 2,714.9

(a) Other liabilities includes capitalised debt funding fees

59% 60% 63%

41%40% 37%

Jun-16 Dec-16 Jun-17Own-brand Co-Brand

1,888.7

1,536.51,815.2

Regulation – Credit Card Market Study (CCMS)

Persistent Debt Unsolicited Credit Line Increases (UCLIs)

• FCA Consultation Paper (4th April) included a new Persistent Debt definition and a new outlined “escalating intervention” strategy targeted at these customers. The consultation period ended on 3rd

July.

• Definition:– Payments of interest, fees & charges exceed repayment of

principal over 18 months, & the outstanding balance is continually > £200

• Outlined Strategy:

– Month 18: Stand-alone prompt communication required

– Month 27: Follow-up stand-alone communication required(including harder prompts and CRA flag note)

– Month 36: Paydown plan engagement needed with customerswith 3 possible outcomes dependent upon customer affordability and engagement, ranging from Collections activity to full card suspension

Next steps/Impacts

The industry has accepted the definition proposed by the FCA. Discussions are ongoing around how the proposed interventions would be implemented from an operational perspective.

• FCA Consultation Paper (4th April) included FCA proposals on UCLIs.

• Within the outlined strategy an “Opt in” customer is one who needs to call within the CLI notice period in order for it to be actioned, an “Opt out” customer is one where the CLI is automatically actioned unless the customer calls in (as today).

• Outlined Strategy• New customers: Provided with “Opt in” choice• Existing customers: “Opt in” opportunity made visible within

communications

Next steps/Impacts

The industry has responded to the FCA’s proposals. Once requirements are confirmed we can integrate delivery into our digital & front-end transformation roadmaps.

CCMS ‘Information’ Remedies (agreed pre-Consultation Paper)

• New mandatory remedies that the industry has agreed to implement. Implementation progress being tracked by Lending Standards Board.– Promo expiry alert (final deadline – Mar-18)

– “Later than” payment day choice (final deadline – Mar-18)

– Credit limit proximity alert (final deadline Jun-18)

• NewDay on track for Dec-17 delivery for both Own Brands and Co-brand

21

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