AA Intermediate Co Limited FY20 Results

AA PLC

AA Intermediate Co Limited results for the year ended 31 January 2020

In compliance with the requirements of AA Intermediate Co Limited's ('AA Intermediate Co') Class A and Class B notes, full year results for AA Intermediate Co have been issued to the Irish Stock Exchange. The results are also available on the AA plc website at www.theaaplc.com.

AA Intermediate Co Limited is the parent company of the companies that provide security and guarantees under the Whole Business Securitisation ('WBS') financing arrangements entered into by the AA on 2 July 2013.

AA Intermediate Co Limited's results differ from the results of AA plc that were announced on 7 May 2020.

The material differences relate to the consolidated assets and liabilities as follows:

1. Net Inter-company debtor balances were £1,166m for AA Intermediate Co and £nil for AA plc as all non-trading balances were eliminated in AA plc as part of the 2013 financing transaction;

2. Cash balances, which were £57m higher for AA plc than for AA Intermediate Co as £30m of restricted cash was held at AA plc level for the AA plc group's Insurance Underwriting activities and £27m of available cash was held which can be used for the working capital of the Insurance Underwriting activities and other strategic requirements;

3. Borrowings and loans, which were £29m higher for AA plc than for AA Intermediate Co. This is due to the purchase of £29m of AA Bond Co Limited Class B2 notes by AA plc;

4. Additional working capital and provision balances are held at AA plc level for the AA plc group's Insurance Underwriting activities. These include £5m for prepayments, £67m for reinsurers' share of insurance liabilities, £14m for trade payables, £6m for deferred income, £10m for other payables, £46m of provisions for unearned premiums and £43m of insurance technical provisions.

AA plc's Insurance Underwriting activities sit outside the AA Intermediate Co group. Other than these activities there are only immaterial differences between Trading Revenue and Trading EBITDA for the two groups. The remaining trading performance is therefore substantially comparable.