Board Meeting Presentation 12 th May 20XX
Table of Contents CEO Overview Business Dashboard Quarterly Financials & forecasts Sales and Marketing Quarter specific items Strategic update: D2C Risk and Underwriting Additional business areas Recruitment Systems AOB 1
CEO Overview
CEO Overview 4 key targets for FYE close 1. Hit Profitability 2. Leverage and Funding 3. Operational Efficiencies 4. Scalable, robust Underwriting 2
CEO Overview Issues to raise awareness of board, important to address into Year End and resolve to position into new financial year Performance of Book Text Financing of Add-ons Text Commercial Director Text KPI and employee targets, compensation Text Management Training and Development Text 3
Business Unit Dashboard
Business Unit Dashboard Business Area Origination and Marketing Status Business Function Status Development Plan 5 At Market Strength Weakness 5 On Plan Milestones Upcoming Priorities Sales and Support 6 Above Market Strength Weakness 7 Ahead of Plan Milestones Upcoming Priorities Underwriting 4 At Market Automation needed for scale Strength Weakness 4 Minor Delays Milestones Upcoming Priorities 4
Business Unit Dashboard Business Area Payout Status Business Function Status Development Plan 4 Functional but Below Market Strength Weakness 5 On Plan Milestone Update Development Priorities Risk At Market Strength 5 Weakness 5 On Plan Milestone Update Development Priorities Collections Performing Well Strength Weakness 6 6 Delivered Majority of Objectives Milestone Update Development Priorities 5
Business Unit Dashboard Business Area System Development Status Business Function Status Development Plan 7 Focused, organized and skilled development team Strength Weakness 5 On Plan Milestone Update (Numerous-highlights) Development Priorities Finance At market - improvements needed for scale and warehouse Strength Weakness 4 4 Behind plan Milestone Update Development Priorities Legal & Compliance At Market Strength Weakness 5 4 Marginal Delays Milestone Update Development Priorities 6
Quarterly Financials
Profit & Loss BoP 1-Jul-XX 1-Oct-XX 1-Jan-XX 1-Apr-XX 30-Jun-XX 30-Jun-XX EoP 30-Sep-XX 31-Dec-XX 31-Mar-XX 30-Jun-XX Forecasted Budget VARIANCE Period 20XX 20XX 20XX 20XX Q1 Q2 Q3 Q4 Interest Income XX XX XX XX XX XX (XX) Finance Income XX XX XX XX XX XX (XX) Interest Payable XX XX XX XX XX XX XX Warehouse Commitment XX XX XX XX XX XX XX Warehouse Interest XX XX XX XX XX XX XX Debt Interest XX XX XX XX XX XX XX Debt Fees Amortisation XX XX XX XX XX XX XX Net Interest Income XX XX XX XX XX XX (XX) Cost of Sales XX XX XX XX XX XX XX Commissions Payable XX XX XX XX XX XX (XX) Bonus Commission Payable XX XX XX XX XX XX XX Transactional Costs XX XX XX XX XX XX XX Purchases XX XX XX XX XX XX XX Other Income XX XX XX XX XX XX XX Arrangement Fees XX XX XX XX XX XX (XX) Option to Purchase Fees XX XX XX XX XX XX XX Dealer Subsidies XX XX XX XX XX XX XX Other Fees XX XX XX XX XX XX XX Litigation Settlement XX XX XX XX XX XX XX Interest Receivable XX XX XX XX XX XX XX Loan Losses XX XX XX XX XX XX (XX ) Provisions XX XX XX XX XX XX (XX) Debt Recovery Est XX XX XX XX XX XX (XX) Shortfall XX XX XX XX XX XX (XX) Write Off XX XX XX XX XX XX (XX) Written Off XX XX XX XX XX XX XX Written Back XX XX XX XX XX XX (XX) Gross Profit XX XX XX XX XX XX XX 7
Profit & Loss (Contd.) BoP 1-Jul-XX 1-Oct-XX 1-Jan-XX 1-Apr-XX 30-Jun-XX 30-Jun-XX EoP 30-Sep-XX 31-Dec-XX 31-Mar-XX 30-Jun-XX Forecasted Budget VARIANCE Period 20XX 20XX 20XX 20XX Q1 Q2 Q3 Q4 Overheads - Fixed XX XX XX XX XX XX (XX) Staff Costs XX XX XX XX XX XX (XX) Office Costs XX XX XX XX XX XX (XX) IT and Communication XX XX XX XX XX XX (XX) Travel and Accommodation XX XX XX XX XX XX (XX) Legal and Professional Fees XX XX XX XX XX XX XX Litigation XX XX XX XX XX XX XX Entertaining XX XX XX XX XX XX XX Bank Charges XX XX XX XX XX XX (XX) General Expenses XX XX XX XX XX XX (XX) Irrecoverable VAT XX XX XX XX XX XX (XX) Depreciation XX XX XX XX XX XX (XX) Loan Management XX XX XX XX XX XX (XX) Overheads - Variable XX XX XX XX XX XX (XX) Staff Costs XX XX XX XX XX XX (XX) Office Costs XX XX XX XX XX XX XX IT and Communication XX XX XX XX XX XX (XX) Travel and Accommodation XX XX XX XX XX XX (XX) Legal and Professional Fees XX XX XX XX XX XX (XX) Litigation XX XX XX XX XX XX XX Entertaining XX XX XX XX XX XX XX Bank Charges XX XX XX XX XX XX XX General Expenses XX XX XX XX XX XX (XX) Irrecoverable VAT XX XX XX XX XX XX (XX) Depreciation XX XX XX XX XX XX XX Loan Management XX XX XX XX XX XX (XX) 8
Profit & Loss (Contd.) BoP 1-Jul-XX 1-Oct-XX 1-Jan-XX 1-Apr-XX 30-Jun-XX 30-Jun-XX EoP 30-Sep-XX 31-Dec-XX 31-Mar-XX 30-Jun-XX Forecasted Budget VARIANCE Period 20XX 20XX 20XX 20XX Q1 Q2 Q3 Q4 Overheads - Optional XX XX XX XX XX XX (XX) Staff Costs XX XX XX XX XX XX (XX) Office Costs XX XX XX XX XX XX (XX) IT and Communication XX XX XX XX XX XX XX Travel and Accommodation XX XX XX XX XX XX (XX) Legal and Professional Fees XX XX XX XX XX XX (XX) Litigation XX XX XX XX XX XX (XX) Entertaining XX XX XX XX XX XX (XX) Bank Charges XX XX XX XX XX XX XX General Expenses XX XX XX XX XX XX (XX) Irrecoverable VAT XX XX XX XX XX XX (XX) Depreciation XX XX XX XX XX XX XX Loan Management XX XX XX XX XX XX (XX) Overheads - Build XX XX XX XX XX XX (XX) Staff Costs XX XX XX XX XX XX (XX) Office Costs XX XX XX XX XX XX (XX) IT and Communication XX XX XX XX XX XX (XX) Travel and Accommodation XX XX XX XX XX XX XX Legal and Professional Fees XX XX XX XX XX XX (XX) Litigation XX XX XX XX XX XX XX Entertaining XX XX XX XX XX XX XX Bank Charges XX XX XX XX XX XX (XX) General Expenses XX XX XX XX XX XX XX Irrecoverable VAT XX XX XX XX XX XX (XX) Depreciation - - - - - - XX Loan Management - - - - - - XX 9
Profit & Loss (Contd.) BoP 1-Jul-XX 1-Oct-XX 1-Jan-XX 1-Apr-XX 30-Jun-XX 30-Jun-XX EoP 30-Sep-XX 31-Dec-XX 31-Mar-XX 30-Jun-XX Forecasted Budget VARIANCE Period 20XX 20XX 20XX 20XX Q1 Q2 Q3 Q4 EBITDA (XX) (XX) (XX) (XX) (XX) (XX) (XX) EBITDA (Ex Build Costs) (XX) (XX) (XX) (XX) (XX) (XX) (XX) EBITDA (Ex Build Costs & Optional) (XX) (XX) (XX) (XX) (XX) (XX) (XX) - - - - - - Corporate Financing XX XX XX XX XX XX (XX) Preference Shares Interest - - - - - - XX Subordinated Loan - XX XX - XX - (XX) Loan Interest XX XX XX XX XX XX XX - Net Profit Before Tax (XX) (XX) (XX) (XX) (XX) (XX) (XX) Corporate Tax - - - - - - Deferred Tax - - - - - - (XX) (XX) (XX) (XX) (XX) (XX) (XX) Net Profit After Tax (XX) (XX) (XX) (XX) (XX) (XX) (XX) 10
Balance Sheet (EoP) BoP 1-Jul-XX 1-Aug-XX 1-Sept-XX 1-Oct-XX 1-Nov-XX 1-Dec-XX 1-Jan-XX 1-Feb-XX 1-Mar-XX 1-Apr-XX 1-May-XX 1-Jun-XX EoP 31-Jul-XX 31-Aug-XX 30-Sept- XX 31-Oct-XX 30-Nov-XX 31-Dec-XX 31-Jan-XX 29-Feb-XX 31-Mar-XX 30-Apr-XX 31-May-XX 30-Jun-XX Tangible Fixed Assets XX XX XX XX XX XX XX XX XX XX XX XX Fixtures and Fittings XX XX XX XX XX XX XX XX XX XX XX XX Computer Equipment XX XX XX XX XX XX XX XX XX XX XX XX Office Equipment XX XX XX XX XX XX XX XX XX XX XX XX Intangible Fixed Assets XX XX XX XX XX XX XX XX XX XX XX XX Intellectual Property Rights XX XX XX XX XX XX XX XX XX XX XX XX Current Assets XX XX XX XX XX XX XX XX XX XX XX XX Debtors due within one year XX XX XX XX XX XX XX XX XX XX XX XX Prepaid finance commission XX XX XX XX XX XX XX XX XX XX XX XX Prepaid Cost of Sales XX XX XX XX XX XX XX XX XX XX XX XX Prepaid Debt Issuance Fees XX XX XX XX XX XX XX XX XX XX XX XX Other Debtors and Prepayments XX XX XX XX XX XX XX XX XX XX XX XX Loan Balances XX XX XX XX XX XX XX XX XX XX XX XX Debtors due > 1 year: other XX XX XX XX XX XX XX XX XX XX XX XX CarSnip XX XX XX XX XX XX XX XX XX XX XX XX Cash at bank and in hand XX XX XX XX XX XX XX XX XX XX XX XX 11
Balance Sheet (EoP) (Contd.) BoP 1-Jul-XX 1-Aug-XX 1-Sept-XX 1-Oct-XX 1-Nov-XX 1-Dec-XX 1-Jan-XX 1-Feb-XX 1-Mar-XX 1-Apr-XX 1-May-XX 1-Jun-XX EoP 31-Jul-XX 31-Aug-XX 30-Sept- XX 31-Oct-XX 30-Nov-XX 31-Dec-XX 31-Jan-XX 29-Feb-XX 31-Mar-XX 30-Apr-XX 31-May-XX 30-Jun-XX Current Liabilities XX XX XX XX XX XX XX XX XX XX XX XX Unearned Finance Charge XX XX XX XX XX XX XX XX XX XX XX XX Accrued Bonus Commission XX XX XX XX XX XX XX XX XX XX XX XX Accounts Payable XX XX XX XX XX XX XX XX XX XX XX XX Taxation and Social Security XX XX XX XX XX XX XX XX XX XX XX XX Other Creditors XX XX XX XX XX XX XX XX XX XX XX XX Accruals and Deferred Income XX XX XX XX XX XX XX XX XX XX XX XX Long Term Liabilities XX XX XX XX XX XX XX XX XX XX XX XX Warehouse XX XX XX XX XX XX XX XX XX XX XX XX Debt XX XX XX XX XX XX XX XX XX XX XX XX Preference Shares XX XX XX XX XX XX XX XX XX XX XX XX Subordinated Loans XX XX XX XX XX XX XX XX XX XX XX XX Accrued Interest on Sub Loan XX XX XX XX XX XX XX XX XX XX XX XX Other non-current Liabilities XX XX XX XX XX XX XX XX XX XX XX XX Provisions for liabilities XX XX XX XX XX XX XX XX XX XX XX XX 12
Balance Sheet (EoP) (Contd.) BoP 1-Jul-XX 1-Aug-XX 1-Sept-XX 1-Oct-XX 1-Nov-XX 1-Dec-XX 1-Jan-XX 1-Feb-XX 1-Mar-XX 1-Apr-XX 1-May-XX 1-Jun-XX EoP 31-Jul-XX 31-Aug-XX 30-Sept- XX 31-Oct-XX 30-Nov-XX 31-Dec-XX 31-Jan-XX 29-Feb-XX 31-Mar-XX 30-Apr-XX 31-May-XX 30-Jun-XX Capital and Reserves (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) Share Capital XX XX XX XX XX XX XX XX XX XX XX XX Profit and Loss account brought forward (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) Profit/(Loss) for the Year (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) (XX) Capital and Reserves Total XX XX XX XX XX XX XX XX XX XX XX XX Book Equity XX XX XX XX XX XX XX XX XX XX XX XX 13
Sales and Marketing
Sales and Marketing Month Monthly Volumes Cumulative Volumes March 20XX XX XX April 20XX XX XX May 20XX XX XX June 20XX XX XX July 20XX XX XX August 20XX XX XX September 20XX XX XX October 20XX XX XX November 20XX XX XX December 20XX XX XX January 20XX XX XX February 20XX XX XX March 20XX XX XX April 20XX XX XX 14
Volumes 15 0 20 40 60 80 100 120 01-Mar-2016 15-Mar-2016 29-Mar-2016 12-Apr-2016 26-Apr-2016 10-May-2016 24-May-2016 07-Jun-2016 21-Jun-2016 05-Jul-2016 19-Jul-2016 02-Aug-2016 16-Aug-2016 30-Aug-2016 13-Sep-2016 27-Sep-2016 11-Oct-2016 25-Oct-2016 08-Nov-2016 22-Nov-2016 06-Dec-2016 20-Dec-2016 03-Jan-2017 17-Jan-2017 31-Jan-2017 14-Feb-2017 28-Feb-2017 14-Mar-2017 28-Mar-2017 11-Apr-2017 25-Apr-2017 09-May-2017 23-May-2017 06-Jun-2017 20-Jun-2017 04-Jul-2017 18-Jul-2017 01-Aug-2017 15-Aug-2017 29-Aug-2017 12-Sep-2017 26-Sep-2017 10-Oct-2017 24-Oct-2017 07-Nov-2017 21-Nov-2017 05-Dec-2017 19-Dec-2017 In Million Cumulative Funded Cumulative Paid Out Forecast 0 4 8 12 16 01-Mar-2016 15-Mar-2016 29-Mar-2016 12-Apr-2016 26-Apr-2016 10-May-2016 24-May-2016 07-Jun-2016 21-Jun-2016 05-Jul-2016 19-Jul-2016 02-Aug-2016 16-Aug-2016 30-Aug-2016 13-Sep-2016 27-Sep-2016 11-Oct-2016 25-Oct-2016 08-Nov-2016 22-Nov-2016 06-Dec-2016 20-Dec-2016 03-Jan-2017 17-Jan-2017 31-Jan-2017 14-Feb-2017 28-Feb-2017 14-Mar-2017 28-Mar-2017 11-Apr-2017 25-Apr-2017 09-May-2017 23-May-2017 06-Jun-2017 20-Jun-2017 04-Jul-2017 18-Jul-2017 01-Aug-2017 15-Aug-2017 29-Aug-2017 12-Sep-2017 26-Sep-2017 10-Oct-2017 24-Oct-2017 07-Nov-2017 21-Nov-2017 05-Dec-2017 19-Dec-2017 In Million Monthly Funded Monthly Paid Out Forecast
Sales and Marketing Future Growth 16
Quarter Specific Items
Strategic Update: D2C
Performance Data
Performance Data Overview o Text o Text o Text * Note: This includes insurance shortfalls 18
Performance Data Overview on Product A on Product B on Product C on Product D * Note: This includes insurance shortfalls 19
Performance Data Total Book 12.00% Total loan book 1- Down performance Forecasted using benchmark roll rates 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 2.00% Total loan book 2- Down performance 1.80% 1.60% 1.40% Forecasted using benchmark roll rates 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 20
Performance Data Total Book 0.70% Total loan book 3+Down performance Forecasted using benchmark roll rates 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM Total loan book default performance Forecasted using benchmark roll rates 21
Performance Data Exc. Loans Outside Criteria Total loan book 1- Down performance Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 1.80% Total loan book 2- Down performance Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM *Footnote 22
Performance Data Exc. Loans Outside Criteria 0.60% Total loan book 3+Down performance Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 6.00% Total loan book default performance Excluding loans which do not meet current criteria* 5.00% 4.00% 3.00% 2.00% 1.00% Forecasted using benchmark roll rates 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM *Footnote 23
Performance Data 20XX Vintages 18.00% Total loan book 1- Down performance 20XX vintages only Forecasted using benchmark roll rates 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 0.70% Total loan book 2- Down performance 2017 vintages only Forecasted using benchmark roll rates 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 24
Performance Data 20XX Vintages 0.25% Total loan book 3+Down performance 2017 vintages only Forecasted using benchmark roll rates 0.20% 0.15% 0.10% 0.05% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 3.00% Total loan book default performance 2017 vintages only Forecasted using benchmark roll rates 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 25
Performance Data A Products 7.00% Total loan book total arrears Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 3.50% Total loan book default performance Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM *Footnote 26
Performance Data B Products 20.00% Total loan book total arrears Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 8.00% Total loan book default performance 7.00% 6.00% 5.00% Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 4.00% 3.00% 2.00% 1.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM *Footnote 27
Performance Data C Products 25.00% Total loan book total arrears Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 20.00% 15.00% 10.00% 5.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 8.00% Total loan book default performance 7.00% 6.00% 5.00% Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 4.00% 3.00% 2.00% 1.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM *Footnote 28
Performance Data D Product 35.00% Total loan book total arrears Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM 20.00% Total loan book default performance Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Cumulative Defaults Benchmark Annualised Default Rate NIM *Footnote 29
Roll Rate Performance Data Roll Rates Total loan book monthly roll rate for up-to-date loans -> 1- down Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates Total loan book monthly roll rate for 1- down loans -> 2-down Excluding loans which do not meet current criteria* 25.00% 20.00% 15.00% 10.00% Forecasted using benchmark roll rates 5.00% 0.00% 29-Sep-16 19-Oct-16 08-Nov-16 28-Nov-16 18-Dec-16 07-Jan-17 27-Jan-17 16-Feb-17 08-Mar-17 28-Mar-17 17-Apr-17 *Footnote 30
Roll Rate Performance Data Roll Rate Trends Total loan book monthly roll rate for up-to-date loans -> 1- down Excluding loans which do not meet current criteria* Forecasted using benchmark roll rates Total loan book monthly roll rate for 1- down loans -> 2-down 25.00% 20.00% Excluding loans which do not meet current criteria* 15.00% 10.00% Forecasted using benchmark roll rates 5.00% 0.00% 29-Sep-16 19-Oct-16 08-Nov-16 28-Nov-16 18-Dec-16 07-Jan-17 27-Jan-17 16-Feb-17 08-Mar-17 28-Mar-17 17-Apr-17 *Footnote 31
Performance Data A+ Monthly Roll Rates (Benchmark) A Monthly Roll Rates (Benchmark) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% A+ Monthly Roll Rates (Realised) A Monthly Roll Rates (Realised) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Footnote 32
Performance Data A- Monthly Roll Rates (Benchmark) B+ Monthly Roll Rates (Benchmark) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% A- Monthly Roll Rates (Realised) B+ Monthly Roll Rates (Realised) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Footnote 33
Performance Data B Monthly Roll Rates (Benchmark) C+ Monthly Roll Rates (Benchmark) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% B Monthly Roll Rates (Realised) C+ Monthly Roll Rates (Realised) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Footnote 34
Performance Data C Monthly Roll Rates (Benchmark) D Monthly Roll Rates (Benchmark) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% C Monthly Roll Rates (Realised) D Monthly Roll Rates (Realised) Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status to Up-to-Date 1-Down 2-Down 3+Down Workout Status From Up to Date / Early Arrears Late Arrears Status From Up to Date / Early Arrears Late Arrears Up-to-Date XX% XX% XX% XX% XX% Up-to-Date XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 1-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 2-Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% 3+Down XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Workout XX% XX% XX% XX% XX% Footnote 35
Additional Business Areas
Recruitment
Organisation Chart CEO COO Director Ms. A Talent Ms. C Warehouse Project Lead Mr. A Mr. B Mr. C Mr. D Mr. E Mr. F Mr. E Head Of Operations Mr. E Mr. F Mr. G Mr. H Mr. I Customer Services Payout Dealer Services Dealer Sales Underwriting Collections Fraud Mr. J Mr. K Mr. L Mr. M D2C Sales PT/ Software Developer Intern Portfolio Analyst Mr. N Mr. Z Mr. L Mr. U Mr. P Mr. V Mr. X Mr. N Mr. Q Mr. N Mr. D Mr. O Mr. R Mr. L Operations Fraud Admin Mr. O Mr. T Mr. Y Mr. O Mr. Q Mr. S Mr. V Mr. P 4th CS Mr. F Mr. H Mr. Q Mr. L Business Improvement SQ Complaints Mr. D Mr. G Mr. L KEY Mr. X Mr. U Mr. X Vacancies Business Analyst Mr. F Mr. F Contractor Project Manager New Hires since 02/XX 36
Conduct Risk Dashboard Q1 Customer Services Complaints Handling Business Area Function Key Risk Indicator Benchmark Source Jan Feb March Customer Services Complaints Total Open Complaints Cases XX XX XX Reportable Complaints Received CC Log XX XX XX Reportable Complaints as % of Total Accounts % of Complaints Upheld (as against total) Bi-annual stats CC Log XX XX XX % of Complaints resolved within 8 weeks response Bi-annual stats CC Log XX XX XX Referred to FOS CC Log XX XX XX % of complaints referred to FOS upheld (as against total) Bi-annual stats CC Log XX XX XX RAG for Quarter SF Case volumes Number of Cases Opened XX XX XX Number of Cases Closed XX XX XX Calls (CS & Collections) Volumes NA NA XX Hang ups NA NA XX Monitoring / Quality Assurance NA NA NA HR Compliance Training Business Area Function Key Risk Indicator Benchmark Source Jan Feb March HR Hiring New Starters XX XX XX Attrition % of leavers to the business XX XX XX Training & Competency Induction XX XX XX RAG for Quarter Compliance policies XX XX XX Annual Learning Modules - Consumer Credit regulatory Environment XX XX XX Annual Learning Modules - Data Protection XX XX XX E-learning Modules XXX XX XX XX E-learning Modules XXX XX XX XX 37
Cont d Dealer Sales Business Area Function Key Risk Indicator Benchmark Source Jan Feb March RAG for Quarter Dealer Sales Sales Process Declined customers as % of total applications Risk Financial Crime Requests to unwind within 14 days (RoW) xx xx xx Requests to unwind outside of 14 days xx xx xx Number of new SQ's in the month xx xx xx Number of SQ's closed in the month xx xx xx % of customers identified as vulnerable (as % of live accounts) xx xx xx New Products / Sales initiatives xx xx xx Business Area Function Key Risk Indicator Benchmark Source Jan Feb March RAG for Quarter Financial Crime AML PEP & Sanctions - Direct match during Applications process xx xx xx PEP & Sanctions - Live loans xx xx xx PEP & Sanctions Hits following annual monitoring - Live loans xx xx xx Cash deposits received > 6000 xx xx xx Card Postings > 6000 xx xx xx NCA Reports (Suspicious Activity) xx xx xx NCA Declines xx xx xx Number of accounts in Credit Arrears (> 500) xx xx xx Legal/Compliance Business Area Function Key Risk Indicator Benchmark Source Jan Feb March RAG for Quarter Legal/Compliance Number of compliance breaches xx xx xx Number of accounts in remediation xx xx xx Number of external contract issues xx xx xx Number of external contract issues outstanding xx xx xx Risk Acceptance xx xx xx IT Business Area Function Key Risk Indicator Benchmark Source Jan Feb March RAG for Quarter IT System Number of IT incidents with Customer impact xx xx xx Number of IT incidents with Dealer impact xx xx xx Number of IT security issues xx xx xx 38
Assessment Findings XXX findings were that more controls could be operationalised and furthermore an additional controls delivery schedule should be more closely aligned to the regulatory risks to which is exposed particularly given the growth strategy over the next XX months. Text Number of key Controls referenced in Policy Suite that are Operational Red Major changes needed Text Amber Some changes needed Text Green No changes needed Text Text 39
High level analysis of residual regulatory risks and areas needing additional controls Regulatory Requirements Oversight of network Text Regulatory Risk General requirements Text Financial Promotions Text Adequate Explanations Text Creditworthiness assessments Text Post-contractual requirements Text Collections Text General UK Compliance Text Governance and Operational Risk Text 40
Metrics Current FCA concerns Tier 1 Tier 2 Tier 3 Tier 4 Text Text Text Text Tier definitions Dealer onboarding, training and ongoing communication Text Text Text Text Text Text Text Text Dealer oversight Text Text Text Text Underwriting and affordability Lifecycle customer management Text Text Text Text Text Text Text Text Internal controls, governance and compliance capability current state Regulatory expectation Market leaders Peers 41
Systems
Systems Key milestones Key Costs Key Risks Disaster Recovery 41
Systems Salesforce & IT Support 42