S

1
SU plc

• Serving the non-standard lending market
• London Stock Exchange
• Growing Companies Investor Day
• 19th March 2009

2
Introduction

• Anthony Coombs - Chairman
• Graham Coombs - Deputy Chairman

3
Business Overview
Profit before taxation
Revenue
Six months ended 31 July 2008 000
Six months ended 31 July 2008 000
32
68
69
31
Home Collected Credit
Motor Finance
4
Track Record
Pence
Full Year
Full Year
Full Year
Full Year
4
5
Home Collected Credit (HCC)

• Well established, cash generative and profitable
• 125,000 long-standing customers visited weekly by
  500 representatives
• Small, flexible loans and customer proximity
  underpin credit quality
• Focus on quality rather than growth in current
  year
• Debt quality has continued to improve as debt
  profile has been shortened
• Current credit conditions provide growth
  opportunities

6
Home Collected Credit

• Three historic regional brands being integrated
  as loansathome4u
• Self-employed agents remunerated on the basis of
  collections
• Small loans and regular face to face contact
• Short duration aids risk management

Key metrics
7
Motor Finance

• Advantage Finance - Motor finance on used cars
• Nine years of profit growth since formation in
  1999
• Business origination 70 broker led
• Favourable market conditions
• Non prime competitors writing lower levels of
  business
• Customer and credit quality and average deal size
  improving

8
Motor Finance

• Tight underwriting procedures
• Hurdle rates raised three times in the last six
  months
• Conversion rate of applications to loans of only
  4

• Key metrics

9
Financial Highlights

• Solid results despite the uncertain economic
  environment
• Revenue broadly maintained as expected at 22.7m
  (2007 22.9m)
• Profit before tax and exceptionals up 7.5 to
  5.0m (2007 4.6m)
• Earnings per share up 3 to 28.3p (27.5p)
• Interim dividend declared 9p unchanged well
  covered by earnings
• Strong balance sheet and financing headroom

10
Operational Highlights

• Home Credit
• Stable collections and improved impairment
• Good cash generation.
• Motor Finance
• Strong demand as applications rise by 31
• Tightened underwriting result in advances up only
  8.
• Appointed Mike Mullins, General Manager of our
  SU division, to the Board

11
Results for 6 Months to 31 July 2008

• Motor finance advances up 8 with improved early
  quality, offset by reduced H1 revenue in HCC.
• Reduced HCC impairment follows large expansion
  driven increase in 2007 (July 2006 impairment was
  4.2m prior to expansion)
• One off 300k exceptional charge re directorate
  change.
• Finance costs 3 up on last year (stable
  borrowings).

12
HCC 6 Months to 31 July 2008

• 4.4 reduction in revenue reflects downsizing in
  H2 2007 overall sales and margins stable.
• Reduced impairment follows large expansion driven
  increase in 2007 (July 2006 impairment was
  2.5m).
• Expenses stable and finance costs reducing.

13
Motor Finance 6 Months to 31 July 2008

• 8 growth in advances taking advantage of
  withdrawal of non prime competitors, whilst
  tightening underwriting (vs 31 increase in
  applications).
• 23 fewer early redemptions due to customers
  trading on less often.
• Stable impairment 72 up to date reflecting
  initial quality and fewer early redemptions.
• Reduced cost of sales (automation) but increased
  collection and compliance expenses.

14
Group Cash Flow

• Six months to July 2007
• Borrowings benefited from corporation tax refund
  0.7m H1.
• Six months to July 2008
• Stable and cash generative HCC.
• Growth in advances and slowdown in early
  redemptions in Motor Finance.

15
Cash Flow by Division

• Motor Finance
• Advances up 8 - growth in volumes and average
  size.
• Early redemptions and debt recovery income slowed
  further.
• Collections stable and up 15 on last year.

• HCC
• Stable advances likely to grow versus last year
  in H2.
• Collections maintained on lower receivables.

16
Balance Sheet and Financing

• Strong balance sheet and financing headroom
• Net assets increased by 6 to 42.9m at the
  period end (31 July 2007 40.6m)
• Group gearing reduced to 75 and finance costs
  and borrowing stable.
• 38m bank facilities provide sufficient headroom
  with just 32m drawn down
• Secured 16m of 5 year funding in April 2008
• Similar arrangement expected for 10m maturing
  next year
• Long-standing relationships with banking syndicate

17
Credit Risk Management

• Home Credit
• Independent credit controllers
• Representative incentives based on collections
• Monthly appraisal for each representative
• Weekly customer home visits by representatives
• Motor Finance
• Bespoke Experian-based underwriting system
• Hurdle rates raised three times in the last six
  months
• Graduated collection process
• Loans secured on the vehicle at average 95
  Glasss Guide retail

18
HCC - Future Growth

• The Market
• Tighter credit availability elsewhere
• Customer appreciation of and reliance upon home
  credit
• HCC
• Well managed relationships mean we can take more
  informed risks.
• H2 2008 to benefit from new initiatives
• Loansathome4u central marketing
• Pilot for new prepaid card.
• Good sales growth in H2 2008 so far.
• Christmas period key to volume and quality.

19
Motor Finance - Future Growth

• The Market
• Withdrawal of competitor finance
• Trickle down of higher quality applications
• Advantage
• Applications nearly doubled in last few months.
• Lower early redemptions
• Improving yield
• Increasing term and funding.
• Cautious growth strategy for H2
• Maintain tightened underwriting
• Improving pricing and quality to mitigate more
  risk in depreciation and term.

20
Current Trading

• Current trading is in line with market
  expectations
• Early signs from our new business initiatives are
  encouraging
• Outlook promising despite slowing economy
• SU well placed for controlled growth in H2 2008
  and beyond given market opportunities.

21
Summary

• Well-positioned in a market expanding due to the
  withdrawal of mainstream lending offers
• Strong credit risk management and track record
  supports quality of earnings
• Customer relationships and brands provide high
  barriers to entry
• Cash generative home credit funding motor finance
  growth
• Strong balance sheet and financing headroom
• Selective acquisitions to complement organic
  growth opportunities
• Well covered and high dividend payout
• Experienced management team interests aligned
  with investors

22
Disclaimer
This document and its contents do not constitute
or form part of a prospectus or any offer or
invitation to sell or to issue, or any
solicitation of any offer to buy or subscribe for
any ordinary shares in the Company nor shall it
or any part of it or the fact of its distribution
form the basis of, or be relied on in connection
with, nor constitute any contract therefore.
Neither the Company or any of its respective
directors, officers or employees give any
representation or warranty, express or implied,
as to the fairness, accuracy, completeness or
correctness of the information and expressions of
opinion contained in this document. This document
is for distribution only in the United Kingdom to
persons to whom the financial promotion
restriction in s21(1) Financial Services and
Markets Act 2000 does not apply by virtue of the
Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (SI 2005/1529)
(the Financial Promotion Order). This document
is directed at Investment Professionals as
defined in article 19 of the Financial Promotion
Order who have professional experience in matters
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