Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2015)
24 slides from Fsa's shareholder meeting presentation, Nov 27, 2015
Slide 1: AGM Presentation
For personal use only AGM Presentation 27 November 2015
Slide 2: Agenda
Agenda For personal use only • Overview • Segments • Services • Consumer Lending • Business Lending • Financial results 2015 • 5 Year Strategic Plan 2016 to 2020 • July to October 2015 FSA Group Limited – AGM Presentation 2015 2
Slide 3: Overview
For personal use only Overview
Slide 4: Overview
Overview For personal use only Australia’s largest provider of debt solutions; direct lender to individuals & businesses What we do For over 15 years, FSA has helped thousands of Australians take control of their debt. Our large and experienced team of professionals offers a range of debt solutions
Slide 5: Services
For personal use only Services
Slide 6: Services
Services For personal use only FSA assists individuals wishing to enter into a formal payment arrangement with their creditors through: 1. Debt Agreement 2. Personal Insolvency Agreement 3. Bankruptcy FSA is Australia’s largest provider of debt solutions FSA Group Limited – AGM Presentation 2015 6
Slide 7: Services
Services For personal use only Debt Largest provider – market share 48%* for new agreements Our focus is affordable, viable and sustainable agreements Agreements - Reflected by our 61% market share for paid out agreements in 2014 18,844 clients owing $328m to creditors Low arrears, $81m paid to cred
Slide 8: FSA is the leader in debt agreements
FSA is the leader in debt agreements For personal use only FSA’s Market Total number of new Share % debt agreements p.a. 60% 14,000 50% 12,000 40% 10,000 CAGR = 6.6% 8,000 30% 6,000 20% 4,000 10% 2,000 0% 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FSA’s Market Share Market Size FS
Slide 9: New service - Easy Bill Pay
New service - Easy Bill Pay For personal use only What is EBP? Service to assist clients with paying their bills Target market The 6,000 to 7,000 new callers who contact us each month Cost to client 99c per day Cost to FSA Nominal operating costs to run as system driven Launched when Trialling since
Slide 10: Consumer and Business Lending
Consumer and Business Lending For personal use only
Slide 11: Consumer and Business Lending
Consumer and Business Lending For personal use only Home Loans FSA offers non-conforming home loans to assist clients with property who wish to consolidate their debt. Personal Loans FSA offers non-conforming personal loans to existing clients to assist with the purchase of a motor vehicle. Factorin
Slide 12: Loan pools
Loan pools For personal use only Loan Pools FY2014 FY2015 % Change Home Loans $221.1m $233.0m +5% Personal Loans $1.1m $5.9m +440% Factoring Finance $24.3m $31.5m +30% Total $246.5m $270.4m +10% Arrears Type FY2013 FY2014 FY2015 Home Loans > 30 day 3.22% 3.32% 2.87% Personal Loans > 30 day NA NA Nil
Slide 13: Loan pools
Loan pools For personal use only Loan Pool Data Home Loans Personal Loans Factoring Finance Average loan size $285,640 $24,228 $277,004 Security type Residential home Motor vehicle Invoices Average loan to valuation ratio 68% 100% 55% to 65% Variable or fixed rate Variable Fixed Variable Geographica
Slide 14: Financial Results
For personal use only Results Financial
Slide 15: PBT by segment
PBT by segment For personal use only FY2013 FY2014 FY2015 % Services $11.7m $11.2m $14.8m +31% Consumer Lending $5.1m $6.8m $5.1m -26% Business Lending $0.8m $2.8m $2.6m -7% Profit before tax $17.8m $20.8m $22.4m +8% Services Continued to perform well. New client numbers increased 8% for debt agreem
Slide 16: Group financials
Group financials For personal use only FY2013 FY2014 FY2015 % Operating income $64.4m $65.5m $69.6m +6% Profit before tax $17.8m $20.8m $22.4m +8% Profit after tax1 $10.8m $13.5m $14.7m +9% EPS basic 8.51c 10.78c 11.74c +9% Operating cash flow2 $14.0m $12.0m $10.9m -10% Dividend/share 5.0c 6.0c 6.5c
Slide 17: PAT vs Operating cash flow vs Dividends
PAT vs Operating cash flow vs Dividends For personal use only 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - 2010 2011 2012 2013 2014 2015 Net profit after tax attributable to members Net cash inflow from operating activities Dividends paid FSA Group Limited –
Slide 18: What's underpinning operating cash flow
What's underpinning operating cash flow For personal use only Long-term annuity income No of clients/ Average client loan pool size life in years Services - Debt Agreements 18,844 4.5 to 5.5 - PIA/Bankruptcy 1,612 3 - Easy Bill Pay 762 Expect > 5 Consumer Lending - Home Loans $233m 3 to 4 - Personal
Slide 19: 5 year strategic plan
For personal use only plan 5 year strategic
Slide 20: 5 year strategic plan 2016 to 2020
5 year strategic plan 2016 to 2020 For personal use only Services Maintain our leading position in a niche market Consumer Expand our product offering Focus on growing our loan pools and Business Aiming to grow from $270m to around $500m Lending Easy Bill Pay Aiming to add over 500 new clients per m
Slide 21: 5 year strategic plan 2016 to 2020
5 year strategic plan 2016 to 2020 For personal use only Earnings - Expect average long term earnings growth of around 10% pa - Growth rate in earnings may be lower in earlier years Capital - Dividends around 50% to 60% of earnings Management - Balance of earnings to be re-invested to support the ca
Slide 22: July to October 2015
July to October 2015 For personal use only Overview Continued our upfront investment in the future growth of our loan pools Services New client numbers down 6% for Debt Agreements and down 15% for PIA/Bankruptcy on previous corresponding period. Easy Bill Pay 1304 clients (762 at June) 44,796 bills
Slide 23: Investor Relations Contacts
Investor Relations Contacts For personal use only Mr. Tim Odillo Maher Ms. Deborah Southon Executive Director Executive Director FSA Group Limited FSA Group Limited Level 3, 70 Phillip Street Level 3, 70 Phillip Street Sydney NSW 2000 Sydney NSW 2000 T: 02 9293 6054 T: 02 9293 6058 F: 02 9293 6032 F
Slide 24: Cautionary Statements and Disclaimer
Cautionary Statements and Disclaimer Regarding Forward-Looking Information For personal use only This release may contain forward-looking statements, including statements about FSA Group Limited’s (Company) financial condition, results of operations, earnings outlook and prospects. Forward-looking s