Morses Club : H1 FY23 Interim Results - Presentation

2023 Interim Results

Gary Marshall - CEO Graeme Campbell - CFO

24 November 2022

Company Update

• Tightened lending criteria over the last six months has led to reduced lending and will continue to impact revenue and profitability in H2 FY23.
• Continuing to work with key stakeholders to pursue a potential Scheme of Arrangement to provide a more equitable outcome for our customers.
• Pausing of processing of all new unaffordable lending claims effective from 11 August.
• Reshaping the HCC business to draw a line under redress complaints - creating a product blueprint to serve our customers and address a market which will continue to grow in the current economic climate.
• Working with funders to secure funding in line with the future operating model of the business.

RESHAPED FOCUS, AMBITION AND COMMITMENT TO THE SECTOR

HCC	Digital
The only HCC provider of scale in	Core digital expertise with
the UK	customer-centric focus - 94%
Stable customer base, despite the	customer experience score
changes to the sector	Lending constrained in line with
95% customer satisfaction	funding levels
Loyal team committed to the sector	Digital technology capability
Blending the best of	Turnaround phase complete with
stable lending platform
behavioural/digital
knowledge

We play a vital role in providing loans to a large and increasingly underserved UK demographic -

the highest inflation levels in 40 years, the cost of living crisis, and weak economic outlook are likely2 to drive more customers into the sector

Section 01

Potential Scheme of Arrangement

Progress on the Scheme of Arrangement

• Customer committee now in place (over 6000 customers contacted, with 8 participants as planned).
• Customer committee Chair - Jamie Drummond-Smith appointed.
• Customer committee meetings held to discuss the detail of the potential Scheme.
• Draft Practice Statement letter in development.
• Skilled person review of Scheme methodology and go-forward business proposition.
• Development of detailed communications plan in preparation for customer launch.

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Regulatory Engagement

• In pursuing a potential Scheme, the Company is working closely with the FCA.

Agreeing the Claims	Approving the credit policies
that underpin the 'go-	Supporting the Scheme 'deal'
Methodology
forward' business proposition

Considering the independent 'skilled-person'
review and subsequent report	Informed by the Customer
recommendations	Committee

• The Company maintains an effective working relationship with the FCA.
• We continue to provide FCA and FOS with detail around the Scheme and the go-forward business proposition.
• The Company has clear plans for addressing the requirements of Consumer Duty.

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