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Motability (MOTOPG A1/A/NR): Deal Roadshow Notes

CONSUMER CYCLICALS

• The Motability Foundation charity oversees the scheme, owned by the 4 main UK banks with no dividend entitlement.

• Benefit paid direct to MO. Shortfalls paid upfront by customer.

• Reserves / Assets at 32.5%, baseline 29%.

• No payouts, providing reserve cushion over time which can be used to support growth, customer initiatives, donations to the foundation.

• Regulatory change is a key risk, with the eligible base growing 6%, rhetoric around welfare reform and the upcoming general election.

• Residual values, increasingly volatile in recent years, is another factor and growing EV share increases risk in our view.

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