Mortgage Advice Bureau : Investor Presentation - 2021 Full Year Results

Delivering, Growing, Innovating

2021 Results

Investor and Analyst presentation

Mortgage Advice Bureau (Holdings) Plc

Final results for the year ended 31 December 2021

Summary and outlook

Appendices

17 19

Highlights

MAB Financial Highlights for 2021

Revenue	Gross Profit	Adj. PBT1
£188.7m | +27%	£51.0m | +28%	£24.2m | +36%
(+31% vs 2019)	(+40% vs 2019)	(+30% vs 2019)
Adj. EPS1	Full Year Dividend3	Cash Conversion2
37.1p | +30%	28.1p | +46%3	113% | +1pp4
(+23% vs 2019)	(+18% vs 2019)	(-6pp vs 2019)

• 1. In 2021 and 2020 adjusted for £0.4m amortisation of acquired intangibles (2019: £0.2m). In 2021, adjusted for £1.0m of additional non-cash operating expenses relating to the put and call option agreement to acquire the remaining 20% of First Mortgage (2020: £0.9m, 2019: £0.4m). In 2021 adjusted for £0.3m of non-cash fair value gains on financial instruments. In 2020 also adjusted for the loan write off and loan provision totalling £1.7m. Adjusted earnings per share is stated on the same basis, net of any associated tax effects.

• 2. Adjusted cash conversion is cash generated from operating activities adjusted for movements in non-trading items, including loans to AR firms and associates totalling £(0.7)m in 2021 (2020: £(1.5)m; 2019: £0.9m), and increases in restricted cash balances of £2.4m in 2021 (2020: £0.6m; 2019: £2.2m), as a percentage of adjusted operating profit.

• 3. For 2021, proposed final dividend per share of 14.7p. The 2021 interim dividend per share was 13.4p. The 2020 final dividend included a 6.4p "catch up" dividend from 2019, which has been adjusted out of 2020 and in to 2019 to show more appropriate comparisons. 2021, 2020 and H2 2019 dividend pay-out was 75% of adjusted profit after tax, minorities and adjusting for non-cash items; H1 2019 was 90%.

• 4. Percentage points.

MAB Operational Highlights for 2021

Mortgage Completions1

Market Share2

Strategic progress

£22.8bn | +33%

6.3% | +3%

(+42% vs 2019)

(+14% vs 2019)

Adviser Numbers3

Revenue Per Mainstream Adviser4

(+29% vs 2019)

(+7% vs 2019)

Investment strategy

• • M & R FM Ltd (25% through First Mortgage)

• • Metro Finance Brokers Ltd (100% through Meridian Holdings Group Ltd)

• • Evolve FS Ltd (49%)

• • Heron Financial Ltd (49%)

National customer lead sources

• • Boomin (investment and strategic partnership)

• • Nottingham Building Society (Beehive)

• • Moneybox

• • MoneySuperMarket

• 1. MAB's gross mortgage completions, including product transfers. Based on information received from the Legal & General Mortgage Club.

• 2. Market share of gross new mortgage lending (excluding product transfers).

• 3. At 31 December 2021, includes 47 advisers who are either directly authorised or later life advisers. Adviser numbers exclude advisers on furlough.

• 4. Based on average number of mainstream advisers for the period. Mainstream advisers exclude directly authorised advisers, later life advisers, and advisers from associates in the process of being onboarded.