Full Year 2024

Results

Strong operational and financial progress

Executed against plan to be a simpler, leaner and profitable business

• Sold US business: gain on sale of £10m

• Restructured UK business: annualised benefit of ~£15m

Strong growth with profit ahead of expectations

• 23% revenue growth to £160m

• Credit extended of £1.9bn (+47% YoY), with Term Loan growth of 33%

• PBT of £3.4m ahead of market expectations, with Term Loan PBT of £19m

Attractive go forward business with healthy revenue and profit growth

• Medium-term guidance unchanged: Group revenue growth of ~15-20% CAGR (2023-2026) and PBT margins >15%, equivalent to at least £200m revenue and at least £30m PBT in 2026

We have transformed the business, expanding our product set, serving more customer needs

2021: Borrow Today: Borrow, pay later & spend

Borrow Longer term

Pay later

Monthly
Spend Daily

A customer

>25% >70%

transaction every Credit extended from new 2024 FlexiPay revenue from cashflow products Term Loan customers 92 seconds

We provide a superior customer experience powered by data and technology

Proprietary data sources

AI powered risk models

Versatile, modular platform design

6 min Application time

3x Better risk discrimination

Scaling in 2024

77% Instant decisions

Better risk discrimination than bureau scores

3x growth Monthly active mobile app users

79 Customer NPS

~20% Engineering productivity improvement

Continued SME demand for finance with robust and attractive returns despite a challenging backdrop for UK SMEs

Good performance and proven resilience through the cycle

GDP and consumer confidence low

Insolvencies remain above historic trend

Robust and attractive loan returns ~5%

Sources: OECD Consumer Confidence Index; ONS GDP monthly estimate December 2024; Insolvency Service January 2025

Annualised term loan returns (above swap rate)

Continuing investor demand

YoY growth in Funding Circle credit extended

Our impact: Building the place where small businesses get the finance they need to win

£14.6bn+ credit extended to 110,000+ SMEs to date

2024 Strategic Highlights

Borrow: Strategic priorities driving continued growth momentum and operating leverage

Continued product and credit innovation with Growth Guarantee Scheme and marketplace expansion Entered third season of rugby sponsorship and strengthened existing channels Simpler, leaner, profitable driven through targeted cost actions

Origination PBT

+33% growth 13.3% margins

Att Pynta

Pay later and spend: Solving SMEs biggest pain point with FlexiPay and Cashback Credit Card

Large addressable market

£1.3trn

SME B2B payments

£80bn+

of SMEs say that late payments from customers are a problem¹

1 Simply Business SME Insights, 2023. n=1,070

Pay later FlexiPay Line of Credit

FlexiPay Line of Credit

Flexible line of credit for managing short term cash flow by e.g. paying bills or supplier invoices using bank transfer or card

Average line: ~£17,000 Payments over 1,3,6,9,12 months

Cashback credit card for everyday business spending

Launched in H2 2024 Average credit limit: ~£17,000

Spend Cashback Credit Card

Pay later and spend: strong growth driven by new and existing customers

FlexiPay transactions volumes

~66,000 in 2024

FlexiPay & Cashback credit card end of month balances by half year cohort, £m1

1. End of month balances by half year cohort are grouped by the half year of first transaction, includes balances from bank transfers, card payments and Cashback credit card
2. FlexiPay account is active when there is an outstanding balance on the account in the last month

Financial Performance

Strong 2024 results vs raised guidance

Simplified, profitable business

Continuing Group financial performance

¹ US business sold on 1 July 2024 for gain on sale of £10m with results presented as discontinued operations
2Net income, as presented in the profit and loss, is defined as “Revenue”

1
Focus on continuing business excluding exceptional costs

• Revenue increase of 23% with continued growth in both Term Loans and FlexiPay

• Operating cost growth (excl. ECL) of 9%, driven by variable marketing costs

• Expected credit losses increased in line with growth in FlexiPay balances

• Significant move to profit, demonstrating operating leverage

• Healthy balance sheet and cash position with movement principally due to share buyback of £33.7m (9% of share capital)

Term Loans PBT margins >13%

Strong growth, PBT ~triples, demonstrating operating leverage; £m

Originations

Loans under 1,2 Management

Growth of 33% driven by commercial loans and govt guarantee schemes

2 Revenue

Operational leverage demonstrated with cost growth of only 5%

Threefold growth in PBT with margins above 13%

¹ Commercial LuM 2023 £1,396m, 2024 £1,971m. Legacy Covid schemes LuM 2023 £1,457m, 2024 £743m
² The legacy “other” business segment (Continental Europe) is immaterial and has been included in the Term Loans segment in 2024. Prior period comparatives have not been restated

Strong FlexiPay revenue growth

Growth and costs in line with expectations; £m

Ongoing momentum in transactions growth

Grew strongly, in line with transactions

Anticipated j-curve with cost growth from up-front costs for expected credit loss provision and marketing and from staff-related costs

Focused cost management

Revenue increase of 23% versus 9% operating expenses increase

Operating expenses (excl. ECL) £m

Marketing costs grew (+23%)

• Variable based marketing costs remain ~30% of revenue

1Data and processing, IT, depreciation & amortization, and other costs

Non-marketing costs held broadly flat (+4%)

• Share-based payment costs (“SBP”) increased due to higher national insurance costs linked to share price performance

• Salary costs reduced (-2%) driven by 2024 restructuring, offset by inflationary pay rises and absorbing costs previously allocated to the US business

1 • Other costs increased by 5%

Restructuring savings on track

Annualised cash savings of £15m offsetting impact of salary inflation and Group cost absorption

• Restructure in H1 24 resulting in annualised cash savings of £15m for FY25; Salaries £13m, Overheads £2m

• £6.5m of the salary saving and £1m of overhead saving was achieved in H2 24

• Cost base now re-shaped for go forward business

Absorption of Group costs allocated to US

Capital efficient model built for scale

Using the right funding for the right product; strong investor demand

• Funding Circle equity, with senior Citi facility

• Revenue model: Drawdown fees and interchange fees

Track record of delivering robust and attractive loan returns through the cycle

~5% Annualised net returns, above cost of capital, to institutional investors with no change to expectations since H1 24

Annualised net returns by cohort after servicing fees and bad debt

£2.1bn Future funding in place

Robust levels of net assets and cash

Term Loans and FlexiPay collectively cash generative

• Term Loans and FlexiPay collectively cash generative and covers investment in FlexiPay lines of credit

Capital Allocation Framework

Available cash

Capital allocation framework

Outlook

On track to deliver on our guidance

• Confident start to business performance in 2025

• Confirming that we are on track to deliver our Medium Term Guidance in 2026:

Constructive & Co.

Looking Ahead/Wrap up

Looking ahead

Strategic priorities focused on profitable, customer-led growth

Get to Yes

Expand our audience

Deliver a seamless end to end customer lifetime experience

Scale our products

Concluding remarks

• Executed against plan to be a simpler, leaner and profitable business
• Strong growth with profit ahead of expectations
• Multiple products serving more customer needs
• On track for medium term guidance with attractive growth and profit trajectory

Appendices

Borrow Term Loan

Loan for long term investment purposes to support business growth

• Six months to six years

• Funding Circle loans; Government guaranteed loans and marketplace (third party loans)

Loan for long term investment purposes to support business growth or long term cashflow management

• £10,000 to £750,000

Pay later FlexiPay line of credit

Spend Cashback credit card

FlexiPay line of credit

Flexible line of credit for paying bills, supplier invoices and managing short term cashflow using bank transfer or card

• Repay over 1, 3, 6, 9 or 12 months

• Flat fee on each transaction

• Credit limit of £1,000 to £250,000

Cashback credit card for everyday business spending

• Credit Card with cashback

• Credit limit of £1,000 to £250,000