Enabling payments through innovation

Solutions | Technology | Experience

Company Overview

APS: Creating tremendous value

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• Electronic Payments, powered by digital banking solutions represent 36B transactions annually and will pass cash by 2017

• £4.3B SME funding gap, equating to £12K per small business in the UK1

• £60B market for consumer credit, with £7.8B representing payday market which will soon require alternative credit products due to regulations

• #1 electronic payments card issuer for Consumers, Corporates (online acquired) and Public Sector through an integrated digital ‘bank enabled’ account offering

• Only regulated electronic money issuer to offer Direct Debit, Bill Payment and Faster Payments in a single card account solution

• Complementary credit products enhancing the acquisition and customer lifetime value while remaining outside the scrutiny of payday lending

• Only credit provider in the ‘shadow lending’ space that supports customers lending and bank account in one integrated relationship

• Key executives have substantial experience in growing and managing large credit profiles working together helping grow a $30B portfolio in the USA and £400m ‘start up’ portfolio in the UK in as little as 3 years.

• Achieved £2.7 million EBITDA ending March 2014 - 94% growth• Achieved £10 million in credit commitments • Surpassed £40 million in growing customer deposits

Enormous market opportunity

Diversified Leadership Position

Unique product functionality

Unique Credit Capability

Strong Financial Momentum

Company Confidential

1. https://www.moneyandco.com/news?item=1184, note ‘small’ is defined as10-49 employees

Our Journey

Company Confidential 33

From Personal Prepaid cards to digitally enabled ‘bank’ account offerings

Founded 2004 First ConsumerAccount issued

2005

Online Banking 2006

Business Banking/ Government Solutions

2011

E-Money Regulated, MasterCard Member

2007

Electronic Banking2011

1.5m Accounts Issued

NFC/Mobile2013

£1.2B Annual Card Spend

25% Share Public Sector

30,000+ SME Customers

2014 Key Milestones

Credit Products2011

24m Annual Transactions

400K + Credit Arrangements

£50m Customer Deposits

£10m Credit Commitments

• Universal Credit to disburse £50B via Electronic Banking solutions

• £5.2B is lost annually in benefits fraud and administration errors

• 4.3 million using the Post Office Card Account need better ‘alternative’

• 97% UK business have < 20 employees• Banks decline 50% of SMEs• Running costs exceed £1000s per year• Massive un-met need for business

financing especially for small and micro businesses

• 7 million consumers wanting more than from traditional banking

• ‘Free’ banking costs £151 per year• 50%+ of banks charge some fixed fees• Credit offerings are nearly non-existent

and alternative lenders charge 3000%+

Market Opportunity and Company Position

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Consumers, Corporates and Public Sector have strong needs for effective electronic banking solutions

Emerging trends position APS as significant payment player with unique capabilities in Consumer and Corporate segments to significantly leverage credit offerings

#1 e-money general purpose current account

#1 online acquired Business Account

#1 card provider to Local Authorities for benefits

Consumers Corporates Public Sector

Market Position

Company Confidential 4

Highly Awarded Electronic Money Issuer

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Best Corporate/Government Programme – ‘12Best Prepaid Programme Manager – ’11

Best Business Card – ’12Finalist Best Innovation: Direct Debit – ‘12

Company Confidential 5

Selected Dec ‘13

Best Business Card ... Again – ’14

6Company Confidential 6

Company DifferentiatorsCreating value from APS’ Leadership Position

APS

Strong Management

Expertise

Credit “know-how”

Unique Product

Capability

Strong Customer

Engagement

Strong Analytics

• 100 years of combined experience in payments• Proven entrepreneurial team with ability to execute

• 9 out of 10 customers recommend our Products

• Highest product loyalty in market due to relevant banking add-ons

• Deep banking and credit knowledge in an evolving UK regulated environment

• Only e-money issuer with Direct Debit, Bill Pay, and credit which positions APS as an true better alternative to banks

• Credit offerings engage both SME and consumer marketplace and enhances our integrated bank account offering

• Economic decisioning allowed APS to be the first profitable company in its sector