MARK BROWN REGIONAL SALES MANAGER ABSOLUTE INVOICE FINANCE

MARK BROWN REGIONAL SALES MANAGER ABSOLUTE INVOICE FINANCE Corporate Finance Network Presentation 11 th March 2010

Adverse Press Cattles Cat tles declares fre Cat. C tlaetstlteos se s h CRISIS-hit lender £ l ts 7 shlu shares 0 0 m h Cattles will have it s i n r to b de v im clare a furtheo pairment provisio r 30 ia c 00 n rr e £ 7 e ns, it has said. mc f in i n d a h Directo plunge n T e he c n su m lwe s inene ill be additional to d in on e £ 400 m already idcom p d f T o h n e e B u si en w e p c n t tified plunge ess Desk 1 st Apr Cattles’ shares a u n a s i s e g r il s s 20 a 09 susp bank o s C a d ttle. C saptlc olicence tleis es Cattles l. D s, to t t s she thfo tleadmits a e ctruosubupon th t a fi C n C a l e n y c t n n s e on profits warning d a m led su e personal s e p a R rk r e m e , e o ts i l t s c s t toine u fu la risis at finsetback tu t rime ltsibhpad c ad to e re ance l l h t o W s e it s p a ll e e it s o id l s cinovmowhich e s de sa 0 aonfd missing £ 400 m bond s Cattles, the doorstep lender had 3 already C e aedy p eclid it ic ld e e t s u c o fi b a F o n t t E a s i w lja nancnicae comp baseb s 1 fold the esub-prime o TH s, s t d n t r n d u a , n a e in n o 0 n a Cattles, lender, t e c M l g n l haenin Servic ies lost 95 per 0 cent of its value past year, 0 nd thya, twhics ed h e 0 h sca ot 0 l athe g cov tt 0 cem riad eo rsote Bu sr ned p continu its bsaid 5 b j sand s aits sin k ankin 1 e 0 ssjoyesterday Oxo s cann of newissued a profits o e , r ford t a u h o yesterday that ig n 1 M f h payments b warning d o U s a e 7 a C n t s w , K h e 0 p y c n a 0 , r 1 Cattles drops a 2 s affe. cti o t pa 1 rt S a o ou nr tm its e oem bre i o n p s te e c e t t m n m e b a o e t b a e f s d application for a banking w g C p its planer 200 n 8 g ah the publication of its preliminary re len 2008 o e co subprime lender, postponed a r the s 5 t dine f ntroubled ives h. T o i g t % d s tn g have to re elicence t n d cut. CATTLES, w i a e e o rc C l o 7 n x n o b h a l slower e onsum d cornm t collec eine s 9 than y to 9 make. Cresults. was going o e n a s b l o s m s c b confirmed yesterday it had failed 0 e e 0 e r t s plans i l n e i 2 o 0 C e t r n d h , r 0 thre banking F a d t c. l h r i r n a e i t r 2 n n e a i e n d a s a e. v M o s d l n n e h ealled Suer 21 n because the tt. Independent r c c w 2009 r ais were thcpayments ded planned a Ca. February interest asuubond due. The on of t C ss iton s e ttleisalh. Timo plans 2 b esk 10 Cattles ehas km 7 e J that da suspen. FINANCE Dgroup f ese r n o a 0 j n s i o. s 0 a e s r , o p b s l 9 e 2 o t c o s n u a Financial Services Authority t t i c e S o r s f bas. Ca. IAthe eptem us th renegotiating Fiitsnpaart olaendscleos. Ienitsvcout arouin. C Sunday, for m a. Tn. dwe Lrd. ISideadline ede ber The Bdropped plans for e ers abanking o l d l l p u E l d hadits stepped up its checks. o o e f g e r P 1 f x h a o e n s S , i a n e bank debt looms. f n t 0 d f r a e t s c i 0 s l c n 0 esde aas. Thteh. Burscei etrateugy toccuetiniev l. Ceattlallow licence which sha es h 12 it ktoitstake ewould HIN r sac m The Independent ull. Aas i r s F p s a b u n m e N e C t u o e E. t 2 p c s t s o S deposits. g l , 0 o ro s s ks g r 0 u s e s a p Cattles D tsd. 9 o December 2008 oion 2009 eskf 7 o to c rved a RBSde v ee Thel. Desk Scotsman 7 bl. July h. January i c s a e a r s C e y s id v e th o t a h s a h r a The Business 26 th t c c re un. Jatpnireunalimryina lease o£f it 7 s 00 tt to s Ca th hi les ha fo. Trhae groups, wwu ttles r ay no ndsineg, les, tr m h ry results Catt 2009 s o e e x rvice h i pae veals de g h le qumoake would be m mn g ls s o n la i d a m e y 0 r e d u l s t e d a t 0 p e n d a e 2 s n l i grou gu d firnoper p agers nd warned pe indiv ss eto 0 m 09 ai. Sn tocrhmingcloau£d 2 sotoekr d that pre tsg in ardia an rov-tisaix pro p opeard , fitsjew i n after sus m c f l o n e s g C o b u n o a. c i re a c i t a a h s b r t c s l f li t a o e le k o e a aid t. ukl "1 substanr bad duseutbo-p dlyfto e t les r as tahebu as imetle o be July 20 tially"dlo y ebwtser irmbb ispcsro t sru s y d it bwankhin I c i e e n te s a n t v g d r i v s e t to r o execupends trading inmitsillisohnbaoearreiasg'br. sdremaekmdovbwe 2 en 4 na. TAnhptsreib, l ss 2 ui 0 ds 0 ip 8 aernyd. bsormiecaech. Feinsaitsfor its Tchurre ent m 0 a 9 rket expecthtaatinon failing to s nce rs ore en pcrofits wman, rs and B issuuseis it Cattles su na pany sufiff m s o a t O c r n e o n in s th c c s g t h a in ts bm S investors earn 2 y weeseks ir. Dde Theguardian. co. u ao ols' tr n o c 0 l k a 10 Marc 08 s sk 2 in intern April 2009 nd h 2009 4 2 k. u o. c guardian Business s. Desk 20 th February 2009

Good News Cattles s ells New owners opt to rebrand finance arm finance u nit to pay bought from Cattles off debts CATTLES' former business finance arm has been relaunched S and by its tricrebranded ken doo rstep an new private equity owners. lender C d sub-p attles to rime Cattles Invoice Finance (CIF), which specialises in loans to small and medium-sized s d a in l y voice fin l sold its e s a n ce armdeal. businesses, sold by the struggling Batley-based group last a £ 70 m smmonth to pay o es was n all parin l e t t of its £ c t ff a a 2 a d. 4 C London-based ebts. billion b n i f ank Ana. Cap Financial Partners yesterday completed the purchase, e Ana. C c i a p o Financia the business Absolute Invoice Finance. l Partner private e inv rebranding s, the s q u r it e y s fi d r m e , has for s £ 10. 4 m t len i n l e l i e k m i ed out illion in l toas£ 100 m b pr launched r fund, aimed at established, castart-up early stage and a ualso o s f bus. Absolute s e h a n d fo y d D r r £ the div 59. 6 m idia ed a BLE U bs ur TRO businesses. s sec inance su a h s e F 9 15 September 02009 ce Post Cattl. Yorkshire st 20 Invoi u s g e u l t 0 A Cat esk 1 D m s 0 s £ 7 usine B e h T e c n a n i F e c i o Cattles Inv te u l o s b A s e o underg ut of firm bought o e rebrand c n a n fi e ic o v been ter-based in st month has la s The Manches le tt a C r e also onal lend The firm has. e c n a in F struggling pers e ic vo ated to s Absolute In will be “dedic s y a s relaunched a it h ic rth 00 m fund w stage and sta y rl a e , d e h received a £ 1 lis stab e growth of e supporting th s” ber 2009 up businesse ss 14 Septem e in s u B r te s e Crains Manch is illion to r company epay inte ion loans. r. London Ev August 0 ening Standard 9 10 Cattles Invoi ce Finance rela unched THE indepen dent bus iness financie known as Ca r formerly ttles Invoice F inance has re as Absolute In launched voice Finance with a £ 100 m dedicated to s fund upporting the growth of earl and start-up b y stage usinesses. Yorkshire Po st, 14 Septem ber 2009

Who are Anacap? Bought by Anacap Financial Partners Sept 09 Immediately re-branded to Absolute Anacap is a specialist private equity fund £ 1 b under investment on behalf of 16 major financial players such as Morgan Stanley, Goldman Sachs & Allianz Other investments include Mediterranean Bank Aldermore Bank Apex Credit Management

ALDERMORE BANK PLC Aldermore Bank was born out of the acquisition of Ruffler Bank and Base Mortgages in May 09 Deposit taking licence via Ruffler Route to market via Base on commercial property, Asset Finance through Ruffler Sept 09 Expanded product offering through acquisition of CIF March 10 acquires Heritable Asset Finance Spring 10 Launch of residential mortgage product

ABL CLIENT GROWTH YEAR 2004 2009 CLIENT NUMBERS 37, 675 44, 883 +19% BALANCES £ 9. 1 b £ 14. 5 b +59%

Rise of the ABL Better proposition than leveraged finance Lack of liquidity in lending Banks ABL’s offer solutions to current cash flow issues ABL now a mature product in the market Broader range of criteria when assessing potential lending Risk sharing against real world hard assets Broad business cycle application Perfectly suited to recovery and turnaround

Where are we now? What have we seen Peak of recession? More to come? Highly leveraged deals SME owners exhausted personal assets Use of HMRC breathing space Banks ducking the issue? Paralysis leading to “Zombie Businesses” Increase in insolvencies Up till now little call for “New Money”

Where are we going? How will our clients get there? “Elephant in the room” not just the most infuriating business saying of 2009 Credit market remains tough – demand will outstrip supply Those who act early most likely to succeed HMRC – Running out of patience Confidence is a fragile thing Correct structure – good advice

Real Lending secured against Real World Assets aaaaa