Funding Circle : Earnings Document

Results for the 6 months to 30 June 2021

• Record Loans under Management of c.£5bn and originations of £1.6bn, helping thousands of businesses - UK originations up 109% year-on-year.
• Our technology platform is transforming the SME borrowing experience with instant decisions for 60% of applications.
• Improving loan performance demonstrates quality and resilience of portfolio.
• High levels of demand from institution investors to fund loans.
• Strong financial performance:
• • Total income: £120.6m (H1 2020: £101.2m) up 19% year-on-year.
  • Profit: £53.3m AEBITDA (H1 2020 -£84.1m) and
    £35.5m operating profit (H1 2020: -£113.5m).
  • Strong growth in net assets to £254.1m (Dec-20: £217.6m)

• Acceleration in adoption of online small business lending, will benefit Funding Circle going forward.
• Operating our core loan product alongside government guarantee programmes in the UK and US.
• Continue to scale Instant Decision Lending with long term target of 80% of loan decisions automated.
• Leveraging our technology to launch new solutions to help SMEs:
• • Embedded finance
  • FlexiPay
  • Business Charge Card
• Attractive financial profile: powered by UK, we expect to be AEBITDA profitable on an ongoing basis and will invest in additional growth opportunities.

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£305bn

Total Addressable

Market 2

<2%

SME loans as a % of banks' balance	SMEs as a % of GDP and employment1
sheets1
1. OECD SME and Entrepreneurship Outlook 2019	5

2. OC&C analysis: Target addressable market in UK and US. Excludes commercial mortgages, loans / debt products <5k and >500k in local currency and loans with APR >25%. In US, higher minimum threshold of $25k