## Funding Circle

### FULL YEAR 2023 RESULTS

7 March 2024

> “Funding Circle’s loan has opened up new possibilities for our future growth. It was easy to apply and we received the money really quickly - it was a no-brainer for us!"
> 
> Anna Tyler, ANNA Cake Couture

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### Disclaimer

### Information regarding forward-looking statements

This Presentation includes forward-looking statements that involve known and unknown risks and uncertainties, many of which are beyond the Group's control. Forward-looking statements are sometimes identified by terminology such as "believe", "expects", "may", "will", "could", and include statements about future results of operations, financial condition, prospects, growth, and strategies.

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### Group performance in line with expectations; go forward focus on profitable UK business

### 2023 results: UK Loans business profitable

- Total income of £162m, +7% YoY
- Unrestricted cash of £170m
- UK business has attractive growth and profitability

### Looking ahead: simplifying business; cash and profit focus

- H2 24: PBT positive
- Medium term: Net income growth of ~15-20%; PBT margins of £6.5m
- Up to £25m buyback given share price undervalued

### Where small businesses get the funding they need to win

#### We’re the UK’s leading SME lending platform

- **£16.9bn** extended to small businesses
- **£6.9bn** GDP contribution
- **>95,000** jobs supported
- **£1.6bn** tax receipts

### Attractive growing and profitable go forward business

- **£1.29bn 2023 total originations** (+12% YoY)
- FlexiPay shows strong traction with ~4x growth from 2022 to 2023

### Well positioned to grow in a large, underserved market

- **£84bn** Addressable SME loans market
- **£1.3trn** SME B2B payments

### Delivering superior customer experience

- 6min Application time
- 79 Customer NPS

### Our UK focus continues to be centred around our three strategic pillars

- Scale products and processes efficiently
- Innovate fast through superior tech and data
- Attract more businesses

### Financial performance

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### Group financial performance

| Metric                  | 2022 (£m) | 2023 (£m) |
|-------------------------|-----------|-----------|
| Total income            | 151.0     | 162.2     |
| AEBITDA                 | 9.5       | 184.0     |
| PBT                     | (33.2)    | (12.9)    |
| NAV                     | 284.0     | 247.0     |
| Unrestricted cash       | 166       | 170       |

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### Group results in line with guidance

|              | UK and US Loans | FlexiPay |
|--------------|-----------------|----------|
| Total income | £150m - 160m    | Over £10m|
| AEBITDA      | £0 - 10m        | £(10-20)m|
| Performance   | £153.9m         | £7.9m    |

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## UK Loans AEBITDA and PBT profitable

| Metric         | 2022 (£m) | 2023 (£m) |
|----------------|-----------|-----------|
| Total income   | 151.0     | 162.2     |
| AEBITDA        | 6.5       | 10.7      |
| PBT            | (16.6)    | (14.4)    |

### FlexiPay spotlight: continued momentum

- ~4x growth in transaction value from 2022 to 2023
- >84,000 transactions since launch

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## Leading UK online SME lender with attractive growth

- Executing against our strategic plan in the UK
- Go forward UK business is simpler and profitable with strong opportunities ahead

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## 2024 Outlook

|              | UK Loans                   | FlexiPay               |
|--------------|----------------------------|-----------------------|
| Net income    | >10% growth                | 3x growth             |
| PBT           | Margins of 8-12%           | Continued investment   |

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## Looking ahead to attractive growing UK business

- Multi-product business well positioned for opportunities
- Delivering superior customer experience