Investec Asset Finance Broker Conference 2017

Andy HartHead of Investec Asset Finance

Business update & strategy

Stuart HughesHead of Broker SalesInvestec Asset Finance

Business update & strategy

16% 20% 10%

growth growth in book growthin lending overall in live contract

Business update & strategy – market share

HA – 60%SA – 38%

* Market size – 14.5 billion* not including motor* Source: FLA, August 2017

How have we supported you so far

Pricing• Hard asset • Soft asset

New products• Professions loans• SME tax and VAT loans• Regulated HP• Pre-hire and stage payments• Re-finance• Southern Ireland

Recent history

• Consistency and service continues to be our focus • 2017 – Executive Committee strengthened

James Collins Lisa Cleaver Matthew Smith

Broker survey

• 339 took part• Business insight

Provider AProvider B

Provider C

Investec

Provider D

Provider E

Provider F

Our commitment to you

Provider AProvider B

Provider C

Investec

Provider D

Provider E

Provider F

Our commitment to you

Our success, is your success

Don’t take our word for it …..

• Engaged a 3rd party agency to benchmark against our own survey

• What the results told us • Actions• Our 3rd party survey results tells us we tick all these

boxes• Confirmation IAF = valued proposition

What about the theme?

• Majority of broker businesses are growing• Who was surveyed?• What does it all mean?

2017 – how is IAF shaping the future?

IAF’s team consists of 146 people • 46%: aged <40• 48%: female • 65%: 3 years + with IAF

We are also building from within: • Martyn Edwards• Laura James• Fay Boyce

How can we help you shape your future?

52%48%

23%

23%29%

24% < 30 years

30 - 40years40 - 50years

2018 plans – shaping your future

IAF 2018 Broker Training programme• January 18 launch• IAF Credit Workshop (includes fraud, back to basics and GDPR)• Introduction to Asset Finance – aimed at new broker starters (admin and sales)• Product and agreement types• Annual IAF Broker Conference• Quantum Credit Workshop

Quarterly events aimed at helping us support your individual people and teams

2018 plans & what’s to come

• Growth aspirations• Investec assurances – here for the long term• Cross skilling• Technology

Investec Asset Finance Broker Conference 2017

Phil Shaw and Andrew MitchellPolitical and Economic update

Investec Asset Finance Broker Conference 2017

A glance at a few things that matterPhil ShawChief Economist, Investec Bank plc

OK, perhaps not quite this long ago!

The BoE has just raised rates for the first time since…

UK GPD growth (% q/q) – down but not out…

Investec forecast

(Bars represent contributions to growth)

•5 rounds of talks since June - 2 abandoned early. More constructive atmosphere post-PM’s Florence speech. •But EU insists on ‘sequencing’ i.e. agree separation terms before trade deal: i) settlement of existing

obligations (i.e. financial); ii) EU nationals’ rights; iii) RoI-NI relations.•EU methodology implies €80-100bn outlay from UK, but reducing to €55-75bn including repayments

etc…

EU/UK talks

•No deal? EU WTO tariffs vary by sector – average 3%-4% (i.e. relatively modest), but up to 45% for dairy. •Also settle with EU; i) financial services access; ii) other non-tariff boundaries iii) customs arrangements•The 55+ countries that currently have a trade deal with EU?Trade deals

•Financial settlement is UK’s strongest card! Britain is a net contributor of £8.5bn per annum. •UK will request transition arrangement of around two years.•In the end, politics not rules, will drive the outcome.Bear in mind…

Brexit process – much to do…

One to avoid…

Main parties’ current poll ratings (averages)

0

5

10

15

20

25

30

35

40

45

50

May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17

Conservatives Labour Lib Dems UKIP Green

%

Main motivation…Tight labour market, fears of rising pay growth momentum and domestically generated inflation ahead.

Also?• Following the Fed?

The Fed has raised rates four times already.

• Uncomfortable with near zero rates over protracted period.

Today’s rate hike in context…

•GDP growth forecast +1.5% this year, +1.7% next. Squeeze on consumer spending should ease modestly.•Economy vulnerable to i) major adverse reaction to higher rates; ii) Brexit

uncertainty. (Neither is our central case).

Economy is expanding slowly…

•MPC genuinely believes there is an inflation problem.•Our forecast still for two more hikes over next two years (Bank rate at 1.0% by

end-2019).

Rates – up gently from here?

•Don’t forget Budget on 22 November.…•Financial Policy Committee to tighten rules on unsecured lending to consumers

towards end of month (28 Nov)?

Other policy moves

Final observations…

Tom BrownHead of Direct FinancePMD

Case study: IAF & PMD

How we supported eCorrugated

Case study: IAF & PMD

Paul Cunningham

Quantum Funding

• New recruits to Quantum

Quantum Funding

Rob EmmisonQuantum Broker Manager

Lyanne BroomesQuantum Broker Support

Growing team in Quantum

Helen LovegroveCredit – Soft Asset

Paul ClanfieldCredit – Hard Asset

Jonathan Dent Credit – Head of Hard Asset

Kilsey WalkerHead of Broker Support

Lyanne BroomesQuantum Broker Support

Paul HastieCredit – Head of Soft Asset

Rob EmmisonQuantum Broker Manager

Paul Cunningham Head of Quantum

John WardQuantum Broker

Becky JacobsQuantum Broker Support

Quantum Funding

• Beware the Lazy Broker• Fast and consistent underwriting• Fast payouts (same day)• Maintain to Risk Bar • Continued sustainable growth

The Wild Beer Co• Tim Shears – Black & White• Understand the business = visit your client• Why did we lend = vision and passion• Lots of information• Staged payments to Italian supplier

Investec Asset Finance Broker Conference 2017

Andy HartHead of Investec Asset Finance

Investec Broker Conference 2017Q&A

Investec Asset Finance Broker Conference 2017

“This document is not legal advice and should not be acted or relied on as being so. Legal advice should be taken before applying any information in this document to any facts and circumstances.”

“Investec Asset Finance plc is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities (including hiring). Registered office at Reading International Business Park, Reading, RG2 6AA. Registered in England Number 2179313.”