Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2017)
25 slides from Fsa's shareholder meeting presentation, Nov 24, 2017
Slide 1: AGM Presentation
AGM Presentation 24 November 2017
Slide 2: Agenda
Agenda • Overview • Segments • Services • Consumer Lending • Financial Results 2017 • Strategy and Outlook FSA Group Ltd AGM presentation 2017
Slide 3: Overview
Consumer Lending Overview Financial Results FSA Group Limited Séfvices trategy and Outlook \V
Slide 4: Overview: Australia's largest provider of debt solutions
Overview Australia’s largest provider of debt solutions; direct lender to individuals What we do For over 17 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 and direct lending services, which
Slide 5: Overview: company history and milestones
Overview Australia’s largest provider of debt solutions; direct lender to individuals & businesses Founded with director loans of $50,000. Initial offering debt 2000 agreements then PIA’s and bankruptcy, then home loan brokering Back door listing raised $600,000 for shareholder spread 2002 requireme
Slide 6: Services
Overview FSA Group Limited Consumer Letding Financial Results Service trategy and Outlook \V
Slide 7: Services: Debt Agreements, PIAs and Bankruptcy
Services Debt Agreements FSA offers a range of services to assist clients wishing to enter into a payment arrangement with their creditors. These services include informal arrangements, debt agreements, personal insolvency agreements and PIAs and Bankruptcy bankruptcy. FSA offers a service which ass
Slide 8: Market
Market FSA Group Ltd AGM presentation 2017 8
Slide 9: FSA is the leader in debt agreements
FSA is the leader in debt agreements FSA Group Ltd AGM presentation 2017
Slide 10: Services: Debt Agreements
Services Debt Market share 40%* Agreements 8% increase in new clients 20,194 clients up 4% $366m of debt managed $81m paid to creditors Our market share remains under pressure. We will never sacrifice quality and customer benefit for volume and market share. PIAs and One of the largest trustees Bank
Slide 11: Consumer Lending
Consumer Lending Overview Financial Results FSA Group Limited Séfvices trategy and Outlook \V
Slide 12: Consumer Lending: Home Loans and Personal Loans
Consumer Lending 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 assist clients with the purchase of a motor vehicle. FSA Group Ltd AGM presentation 2017 12
Slide 13: Loan pools
Loan pools Loan Pool Data Home Loans Personal Loans Average loan size $325,718 $25,483 Security type Residential home Motor vehicle Average loan to valuation ratio 68% 100%+ Variable or fixed rate Variable Fixed Geographical spread All states All states FSA Group Ltd AGM presentation 2017
Slide 14: Loan pools
Loan pools Loan Pools FY2016 FY2017 % Change Home Loans $262.0m $306.3m +17% Personal Loans $19.8m $35.3m +78% Total $281.8m $341.6m +21% Arrears > 30 day FY2015 FY2016 FY2017 Home Loans 2.87% 2.17% 2.21% Personal Loans Nil 0.59% 1.56% Impairments FY2015 FY2016 FY2017 Home Loans $173,288 $564,867 $2
Slide 15: Loan pools: Funding Facility
Loan pools Funding Facility Type Provider Limit Renewal Date Non-recourse senior Westpac $300m October 2019 Home Loans Non-recourse senior Westpac $25m September 2019 Non-recourse mezzanine Institutional $25m October 2019 Personal Loans Recourse corporate Westpac $40m December 2017 For Personal Loan
Slide 16: Financial Results
Consumer Lending Overview Financial Result FSA Group Limited Séfvices trategy and Outlook \V
Slide 17: PBT by segment from continuing operations
PBT by segment from continuing operations Profit before tax by segment FY2016 FY2017 % Change Services $14.2m $14.9m +5% Consumer Lending $5.2m $7.0m +34% Other/unallocated ($2.5m) $1.6m Profit before tax $16.8m $23.5m +39% Services Profitability positively impacted by higher new client numbers and
Slide 18: Group financials from continuing operations
Group financials from continuing operations Financial Overview FY2016 FY2017 % Change Operating income $62.1m $70.6m +14% Profit before tax $16.8m $23.5m +39% Profit after tax attributable to members $10.7m $15.4m +44% EPS basic 8.52c 12.27c +44% Net cash inflow from operating activities $9.9m $11.1
Slide 19: Group financials excluding impact of swap agreement
Group financials from continuing operations, excluding impact of swap agreement Normalised Financial Overview FY2016 FY2017 % Change Normalised profit before tax $19.2m $22.1m +15% Normalised profit after tax $12.3m $14.4m +17% attributable to members Normalised EPS basic 9.85c 11.48c +17% Excludes
Slide 20: What's underpinning operating cash flow
What's underpinning operating cash flow Long-term annuity income No of clients / Average client loan pool size life in years - Debt Agreements 20,194 4.5 to 5.5 Services - PIA/Bankruptcy 1,404 3 - Easy Debt Management 2,575 Expect > 5 - Home Loans $306m 3 to 4 Consumer Lending - Personal Loans $35m
Slide 21: Strategy and Outlook
Consumer Lending Overview Financial Results FSA Group Limited Séfvices Strategy and \V Outlook
Slide 22: Strategy - 5 year plan 2016 to 2020
Strategy - 5 year plan 2016 to 2020 Services Maintain our leading position in a niche market Aiming to grow our loan pools to around $500m Consumer Lending 14% growth rate pa Earnings Expecting average long term earnings growth of around 10% pa Dividends around 50% to 60% of earnings Capital Balance
Slide 23: Outlook
Outlook New client numbers for July to October 2017 vs pcp Services - up 16% for Debt Agreements and - down 19% for PIA/Bankruptcy Home Loan pool $327m up 7% on June Personal Loan pool $39m up 11% on June Consumer Lending Combined pool $366m up 7% Targeting combined over $385m by June 2018 Earnings
Slide 24: Investor Relations Contacts
Investor Relations Contacts 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 8985 5090 T: 02 8985 5091 F: 02 8985 5310 F: 02 8985 5333 E: tmah
Slide 25: Cautionary Statements and Disclaimer Regarding Forward-Looking Information
Cautionary Statements and Disclaimer Regarding Forward-Looking Information 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 statements are typicall