Osb Group Plc · LSE:OSB
Osb — Investor Day (March 2025)
54 slides from Osb's investor day presentation, Mar 13, 2025
Slide 1: Group Investor update
Group Investor update OSB Group Investor update 13 March 2025
Slide 2: Agenda for today
genda for today Introduction Andy Golding 10:00 Optimised lending growth plan Jon Hall 10:10 Investing in our future Clive Kornitzer and Matthew Baillie 10:35 Break 10:50 Financial overview Victoria Hyde 11:10 Summary Andy Golding 11:20 Q&A with management 11:25 Buffet lunch 12:10 OSB GROUP PLC | In
Slide 3: OSB Group today
OSB Group today #1 Specialist lender * UK largest independent specialist Buy-to-Let lender! * Holistic lending strategy with deep experience in Specialist Residential, Commercial, Asset Finance, Development Finance and Bridging * Nearly 19,000 active broker partners 2% 2% Gross loans oe £25.3bn as a
Slide 4: Our track record of delivery
Our track record of delivery & The Group is a leading specialist lender... 4st to execute 4st to build our own ys of anew breed of highly specialist successful banks to capability list in India, OSBI 4st special to achieve FTSE 250 status June 2015 June 2014 2004 - 2010 strong risk management, * Ful
Slide 5: Our plan
Our plan Taking the strengths that have delivered success * Relationships with intermediaries and borrowers with proven capability to grow * Credit expertise in a wide range of secured lending segments Transforming the way we operate our business * We are building our new leading technology platform
Slide 6: 2024 — 2026 Transitional Action Plan underway
2024 — 2026 Transitional Action Plan underway 2025 Guid 2026 Directi | ureanee treewon Factors that will lead Net loan book Low single Modestly higher to improvement in growth digit than 2025 performance from 2027: NIM = * Lending back book ©.2.25% Similar level increasingly replaced by new to 2025
Slide 7: 2027 — 2029 Aspirations
2027 — 2029 Aspirations Net loan book growth Ca. Transformation Loan book diversification Administrative expenses _ * ~ - "Diversification || Distributions Progressive dividend per share and commitment to return excess capital Optimised Lending Growth Plan 7 OSB GROUP PLC | Investor update | Introdu
Slide 8: Optimised lending growth plan
Group Optimised Lending Growth Plan 8 OSBGROUPPLC | Investor update | Optimised lending growth plan
Slide 9: Bringing to life the #1 Specialist Lender
Bringing to life the #1 Specialist Lender The specialist mortgage market is deeply personal, built on reputations and relationships. Technology and use of data today is at an early stage in the specialist market but accelerating. OSB as #1 Specialist Lender means: * we best match partnership expecta
Slide 10: Today
Today Optimised Lending Growth Plan 10 OSBGROUP PLC | Investor update | Optimised lending growth plan
Slide 11: Lending Headlines
Lending Headlines OSB manages its lending in a holistic way for intermediaries across all its segments: * offers a one stop for intermediaries * allows the Group to grow all lending segments * blend performance between lending with different profiles * dynamically optimising the risk adjusted return
Slide 12: The 3 advantages that support our Optimised Lending Growth Plan
Lending Headlines 1. 3. RELATIONSHIPS Trusted leadership with intermediaries, delivered through 100+ sales relationship team. CREDIT EXPERTISE Credit capability delivered through 300+ experts across underwriting, credit and data analytics. SCALE TO INVEST & INVEST TO SCALE Scaled platform evidenced
Slide 13: Lending Headlines: new lending by segment
Lending Headlines 50 40 30 20 Annual new lending! pa by segment fbn Annual new lending! pa by segment & segment lending CAGR % 2025 - 20292 Specialist BTL Specialist Residential e e : | Commercial Asset Finance Bridging Finance Development Mortgages Finance 10% 8% [ 088 Vieles S) AD © G00 O00 13 1.
Slide 14: OSB Intermediary strategy
OSB Intermediary strategy Intermediaries access all Group lending via a single relationship management team UK Mortgage origination is 90% intermediated. 99%! of OSB lending through mortgage intermediaries. Controlled by a small number of corporate firms ——————> Accessed via a single relationship en
Slide 15: What matters to intermediaries
OSB Intermediary strategy We understand what matters to intermediaries and focus on it What matters? Client eligibility, Criteria consistency, Processing time, Ease of dealing & Product flexibility Key Criteria for Lending Intermediaries: Eligibilit issi igibility We commissioned 3rd party research
Slide 16: Our intermediaries tell us our approach works in all segments
OSB Intermediary strategy Our intermediaries tell us our approach works in all segments ee ee ° it | (Speciatst Residential] C Commercial J ( ; Asset k Finance | (sing Finance | Accommodate Efficient TruSt — Quick Support Faster Relationshi Recommen tp Edge Flexibility Scale Accurate Complex Reputat
Slide 17: OSB Diversified Portfolio
OSB Diversified Portfolio Our Optimised Lending Growth Plan is delivering into the portfolio mix Products @ suy-to-Let e Specialist residential C3} Commercial Cs) Asset finance 5 Bridging loans | Development finance Description Mortgages secured on rented out residential property, incl. private indi
Slide 18: OSB Diversified Portfolio (2029)
OSB Diversified Portfolio (2029) Our Optimised Lending Growth Plan in medium term reflected in mix Gross Loan Book 2024 & 2029 1% - 1% BTL < 60% of By 1% portfolio 21% Group Residential =BTL = Commercial = Asset Finance = Development Finance = Bridging Optimised Mix Strong Blended Returns 18 OSBGROU
Slide 19: Optimised Lending Growth Plan
Optimised Lending Growth Plan 1. 9 Continue to love specialist BTL with its scale, more attractive growth & returns than mainstream BTL. Boost Specialist Residential and Commercial Mortgages where there is market growth & headroom for the Group to outperform overall UK lending growth. Optimise the m
Slide 20: Buy To Let
Buy To Let Segment Drivers Core foundations remain strong, and market has returned to growth, 4% CAGR' gross lending between 2024 -2029 for Specialist BTL. Shortage of housing starts driving tenant demand, improved landlord economics increasing borrowing appetite. Specialists continue to gain share
Slide 21: Buy To Let — 'Landlord Leaders'
Buy To Let — ‘Landlord Leaders’ OSB driving BTL thought leadership, giving evidence for positivity from landlords in a thriving sector. * Framed ‘landlord leaders’, professional landlords investing in environmental improvements, reshaping portfolios and putting tenant at heart of decision making. *
Slide 22: Buy To Let
@ Buy To Let Our focus is on professional landlords. OSB Drivers 22 Unparalleled market leading credit expertise for professional landlords * 85% of 2024 completions were Ltd Co &/or HMO? Improved share & funnel conversion from investment in platform * Combining the best of what we do from simple to
Slide 23: Specialist Residential
Specialist Residential Segment Drivers! 23 £46bn Specialist residential segment with 30% growth in annual flow by 2029. Specialists gain volume by working ‘smartly’ alongside high street to service customers not accepted by mainstream through automated scorecards or manual underwriting. 20% of the U
Slide 24: Specialist Residential
Specialist Residential Our focus is on credit impacted, FTB & irregular incomes. OSB Drivers 24 Data led application scorecard advantage in a scalable platform * Wide product range and credit data with c.20 years of data history used in Precise market leading product ‘cascade’ system * 80%! speciali
Slide 25: Commercial Mortgages
(2) Commercial Mortgages Segment Drivers! 25 Stable with slow, resilient recovery in Commercial lending through 2025-29 driven by growth in SME turnover. Positive commercial property index in 2024 / 2025 YTD. Mortgages are c.£30bn in commercial lending for property acquisitions and refinancing. Comm
Slide 26: Commercial Mortgages
(2) Commercial Mortgages Our focus is on good secondary & tertiary commercial property, Purpose Built Student Accommodation, semi- commercial & trading related assets OSB Drivers Leverage increasing trend for investors to seek yield uplift and diversify Expand the Interbay distribution A competitive
Slide 27: Asset Finance
Asset Finance Our focus is ‘hard assets’; transport (trucks, trailers, vans) + construction (wheeled & tracked excavators) + manufacturing (engineering assets) OSB Drivers 27 2024 E 2029 E Market Stock! £116bn £134bn Opportunity to 2024 Est OSB 0.4% i - ot grow lending New Lending market share by Sh
Slide 28: Bridging Finance
() Bridging Finance Our focus is residential property, commercial property & refurbishment of existing property. OSB Drivers Expand propositions in property enhancing & commercial bridging * Represents 60% of the Bridging sub-segment Leverage reputation as market leader in regulated bridging lender
Slide 29: Development Finance
) Development Finance Our focus is funding houses outside of city centre locations direct to housebuilding groups. B Driver: os ers 2024 2029 E * OSB maintain its direct to housebuilder relationships Market Stock’ £24bn £28bn Opportunity to grow lending market share by 0.3% - 0.5% pa 2024 OSB New 3%
Slide 30: OSB Diversified Portfolio (2029)
OSB Diversified Portfolio (2029) Our Optimised Growth Plan notably changes the mix 1% 1% BTL < 60% of By 1 portfolio 21% Group 2024 Stock 2029 Stock Residential = BTL = Commercial = Asset Finance = Development Finance = Bridging Optimised Mix Strong Blended Returns AllSegmentsGrowing fauCEivel(welte
Slide 31: #1 Specialist Lender
#1 Specialist Lender =—K OPPORTUNITY Growth is anticipated in all OSB lending segments from 2025 to 2029 HEADROOM TO GROW OSB is uniquely positioned to leverage its leadership with intermediaries and credit expertise across its lending DEMONSTRATING DELIVERY Optimised Growth Plan is delivering a div
Slide 32: #1 Specialist Lender
#1 Specialist Lender The future of Specialist Lending will be even more deeply personal with a critical blend of human expertise and embedded technology. That’s why we’re investing, to maintain and enhance our service to intermediaries and borrowers, with a laser focus on being the #1 Specialist Len
Slide 33: Investing in our future
Group Investing in our future 33 OSBGROUPPLC | Investor update | Investing in our future
Slide 34: Transformation is essential...
Transformation is essential... Evolving Changing Optimising Customer Regulatory Operations for a Expectations Landscape Digital Future Demanding seamless, Maintaining Improving efficiency, data-driven, and compliance, whilst reducing costs, and personalised banking strengthening trust integrating te
Slide 35: OSBindia — A structural advantage
OSBindia — A structural advantage * Remains a scalable and * Located in Bangalore and cost-effective location Hyderabad, the top 2 destinations in India for Global Capability Centres ° Bangalore ° Hyderabad * Long established and integrated ways of working with the UK across most functions Deep, bro
Slide 36: Timeline
Timeline Embark on the Transformation journey font Strate, Shapini Build & Scale 050 gy ping ty o<0O Emerge from Strategic Partner Global Pandemic engaged after rigorous RFP process to define North Star Vision Transformation Partners Fast forward to 2025 SY Modernisation Strategy Paper signed-off by
Slide 37: Why are we doing this?
Why are we doing this? Over-arching Vi of Trametorsvation @ Building our Bank of The Future New Savings " . and Lending > Savings Lending services enabled Modern scalable savings platform Transform the lending experience for brokers, by core capabilities borrowers and colleagues . Cloud Data Core Ap
Slide 38: Cloud, Data & Engineering
Cloud, Data & Engineering: Driving a High-Performing, Future-Ready OSB p wm i Delivered Coming next Benefits Cloud * Built a scalable, secure, and high- * Enhancing cloud agility, its * Aresilient, more cost-efficient performing platform operational performance and business, that can scale and cS co
Slide 39: Transforming Savings for a Smarter, Faster Future
Transforming Savings for a Smarter, Faster Future Benefits Delivered Savings * Launched our first product, a 2-year fixed-rate bond on our new savings platform 2 * Real-time payments for instant deposits and withdrawals * Created a fully digital on boarding experience for our customers Note: This is
Slide 40: Scale to Invest & Invest to Scale — Mortgages
Scale to Invest & Invest to Scale — Mortgages Delivered Benefits Lending * Launched our new Broker registration portal (invite only) * Streamlined the application process, Q improving everything from agreement- in-principle to full mortgage applications * Built our new decision engine, giving us gre
Slide 41: Conclusion
Conclusion oo By streamlining operations lowers the cost of funding freeing up capital. Scale seamlessly, supporting growth ambitions. Enhanced agility and automation. Faster decision-making, increased operational resilience. Customer-centric approach, driving long-term value. OSB GROUP PLC | Invest
Slide 42: Achieving our medium-term aspirations
hieving our edium-term pirations OSB GROUP PLC | Investor update | Achieving our medium-teffiilglBIatIOAee
Slide 43: Near term guidance and medium-term aspirations
Near term guidance and medium-term aspirations 43 Transition period 2025 Guidance 2026 Direction 2027 — 2029 Aspiration Loan book growth Low single Modestly higher digit than 2025 NIM ©.2.25% Similar levels eS” to 2025 Loan book diversification Administrative Modestly higher expenses @ae270hi than 2
Slide 44: Changing mix of the loan book
Changing mix of the loan book The composition of the loan book evolves over time... Gross loans as at 31.12.2024 2029 Other Specialist 4% Commerci 3% =60% Residenti 21% Buy-to-Let 70 Buy-to-Let * Maintain leading position in professional Buy-to-Let + Progressive increase of originations in Residenti
Slide 45: Funding dynamics
Funding dynamics Primarily retail deposit funded... Group’s funding channels Retail savings total £27.6bn as at 31.12.2024 total £23.8bn as at 31.12.2024 * Consistently funding loan book growth 4 4% le through our stable retail deposit franchise 5% KentReliance * Transformation delivery enables grea
Slide 46: Current Group cost profile
Current Group cost profile Core costs Average number of Group employees in 2024 * Core costs of £237.9m were up 3% in 2024, excluding the impact of the new Bank of England levy * The Group employed nearly 2,500 colleagues at the end of 2024, broadly stable compared to 2023 46 OSBGROUPPLC | Investor
Slide 47: Core Transform Run Transform Build
2023 2024 2025 2026 2027 Post Transform Core Transform Run Transform Build
Slide 48: Transformation total spend over the 5-year programme
Transformation total spend over the 5-year programme Spend to date c.£60m 68% capitalised 26 16 Lo 2023 2024 ™ Opex Spend to go c.£130m 33% capitalised 2025 2026 2027 Capex Approximate spend across the workstreams Core 50% Lending 30% Savings 20% 48 — OSBGROUPPLC | Investor update | Achieving our me
Slide 49: Consistently strong capital generation that supports strong distributions
Consistently strong capital generation that supports strong distributions and net loan book growth The Group’s capital distribution approach 2020-2024 Average annual as % of CET1: * Progressive dividend : Distributions Organic ©.2.0% per share eepliel * Board’s commitment generated . 3.6% Loan book
Slide 50: To sum up
To sum up Our investors have told us they want more clarity so today we will set out OSB’s journey towards a strong future We are in the midst of our transition period and originating good margin new business with EIR now a matter of business as usual We are diversifying further into segments where
Slide 51: Appendix
OSB GROUP PLC | Investor update | Appendix
Slide 52: Speakers' biographies
Speakers’ biographies 52 Sa Jon Hall Group Managing Director, Mortgages and Savings Jon joined OSB Group in November 2021. Jon has significant experience within the financial services sector and joined the Group from Aspinall Financial Services, a pre-authorisation bank start-up, having previously l
Slide 53: Important disclaimer
Important disclaimer This document should be read in conjunction with any other documents or announcements distributed by OSB GROUP PLC (OSBG) through the Regulatory News Service (RNS). This document is not audited and contains certain forward-looking statements with respect to the business, strateg
Slide 54: Important disclaimer (continued)
Important disclaimer (continued) OSBG does not assume responsibility for the correctness of any business or market data included in this document. Information provided by third parties has been accurately reproduced and, as far as OSBG is aware and has been able to ascertain through comparison with