AA Intermediate Co Limited Interim H1 21 Results

AA Intermediate Co Limited Interim results for the six months ended 31 July 2020

In compliance with the requirements of AA Intermediate Co Limited's ('AA Intermediate Co') Class A and Class B notes, interim 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 29 September 2020.

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

1. Net intercompany balances were £1,147m 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 £65m higher for AA plc than for AA Intermediate Co as £38m 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. Additional intangible assets, working capital and provision balances are held at AA plc level for the AA plc group's Insurance Underwriting activities. These include £70m for reinsurers' share of insurance liabilities, £20m for trade payables, £9m for deferred income, £16m for other payables, £60m of provisions for unearned premiums and £38m of insurance technical provisions.

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

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