TruFin : 2020 Half-Year Results Presentation

Investor H1-20 update

September 2020

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H1-20 unaudited results

Financial highlights from continuing operations:

⚫

⚫

Revenues (unaudited):	£4.2m	(£3.1m in H1-19, 34% growth)
Loss before tax (unaudited):	£5.5m	(£3.7m in H1-19)

Commentary

The Group's subsidiaries continue to build on their current momentum; scaling their partnerships, enhancing their distribution channels and expanding their client bases.

• Covid-19pandemic resulted in lower lending volumes at Satago and Vertus with negligible impairments
• A portion of Oxygen's client base temporarily suspended early payment programmes - which Oxygen was compensated for
• Playstack signed two significant contracts with global technology platforms and successfully launched a console game

FY revenue and net loss expected to be ahead of market expectations

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Covid-19 impact and outlook

			Covid-19 impact
		Immediate	Short term	Long term
			Government temporarily	Suppliers become
	Oxygen	Council spending reduced	orders councils to pay	dependent on early
	suppliers ahead of time,	payment - incentive to
			circumventing Oxygen	use Oxygen
		Loan book decreased	Government subsidises	Well positioned as cash
	Satago	SME funding, creating a	flow provider when
	Minimal impairments
		'false market'	government schemes end
		Deals in pipeline delayed	More IFAs retiring,
	Vertus	leading to pickup in	Minimal
	No impairments
		volumes
	Playstack	Minimal	Brand partners review	Minimal
	spending

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Key messages

Covid-19 resilience

Positioned to grow

Market expectations

• Partnership approach insulates distribution
• Minimal impairments
• Capabilities undented by Covid-19
• Subsidiaries well positioned to grow
• Playstack momentum and Group cost controls
• FY revenue and net loss expected to be ahead of market expectations

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Oxygen: resilient with council spending now recovering

		Oxygen contracted procurement spend (£bn)
⚫	Cost control has offset	and annual net transaction spend (£m)
	revenue stagnation resulting	25			1,000
	from decline in transaction	Aug-20: Contracted
		procurement spend of £21.6bn	900
	spend
⚫ Three new council wins since	20			800
			700
	lockdown started
	15			600
⚫ New 'resilience' services sold				500
	into councils - highlighting	10			400
	cross selling potential
				300
		5	Q1-16: Acquisition of		200
			Oxygen		100
		0			0
		Dec-15	Dec-16Dec-17Dec-18	Dec-19Aug-20
			Contracted procurement spend
			Annualised quarterly net transaction spend

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Satago: robust risk metrics throughout Covid-19

Satago SaaS sales

⚫

⚫

⚫

Signed £5m credit facility in January 2020

Software sales slowed as

distribution partner disrupted

• maintaining YE targets

Loan book declined through first phase of Covid-19 - strong pipeline

600									£250k
500									£200k
400									£150k
300
								£100k
200
100									£50k
0		Nov-19			Feb-20		Apr-20	May-20	£0k
Sep-19	Oct-19	Dec-19	Jan-20	Mar-20	Jun-20
		Paying subscribers		Annualised revenues

Satago loan book (£m)

• Government loan schemes currently outpricing Satago - short term competition

5

4

3

2

1

0

Jun-20

May-20

Apr-20

Mar-20

Feb-20

Jan-20

Dec-19

Nov-19

Oct-19

Sep-19

Aug-19

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

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Vertus: continued to lend through Covid-19

⚫	Vertus has approved four loan	12				12%
	facilities since March 2020,
	totalling £4.3m	10				10%
⚫ No impairment on any loan						Vertus asset yield
⚫ Interest rate cuts reflect the	8				8%
	lower yield in the Vertus book
⚫ Loan book target of £16m in	6			Covid-19 hits	6%
			Base rates cut
	Q1 2021
		4				4%
		(£m)bookloanVertus
		2				2%
		0				0%
		Dec-16	Dec-17	Dec-18	Dec-19
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Playstack: gaming division thriving in Covid-19

• Two significant contracts signed with technology platforms for new console game - 'Mortal Shell'
• Lending capabilities growing with 3rd party debt provider - expanding pipeline
• Post lockdown, brand partners showing renewed interest in marketing campaigns

>5,000,000 video views

"Greatest dark souls game of the decade" Inverse

Steam wish list >250,000

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Strategic priorities

Unlock potential

Build partnerships

Unlock value

• Provide stable environment for subsidiaries
• Secure further partnerships to allow subsidiaries to leverage their capabilities
• Significant value within TruFin to be unlocked

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Disclaimer

This document is a private and confidential communication of TruFin plc. This document is being made available only to officers, employees and professional advisers of TruFin plc and is not intended for distribution to any third party or to the public. No representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability is or will be accepted by TruFin plc or any of TruFin plc's subsidiaries or by any of their respective officers, employees or agents, in relation to the adequacy, accuracy, completeness or reasonableness of this document. This document does not constitute an offer, invitation or promise and no information set out or referred to in this document shall form the basis of any contract. This document does not constitute an offer to sell or an invitation to purchase shares in TruFin plc. By reading or accepting this document, the recipient agrees to be bound by the foregoing limitations. If you have not received this document directly from TruFin plc, your receipt is unauthorised and you must not read, copy, distribute, discuss or take any action in reliance on it, and you should please return this document to TruFin plc immediately.

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