Slide 1: FSA Group Investor Presentation
For personal use only FSA Group Investor Presentation 22 August 2014
Slide 2: Agenda
Agenda For personal use only • Overview • Core division – Services • Growth divisions – Consumer Lending and Business Lending • Financial results 2014 • Where are we heading? 2
Slide 3: Overview
For personal use only Overview 3
Slide 4: Overview
Overview For personal use only Australia’s largest provider of debt solutions; direct lender to individuals & businesses Profit after tax $13.5m up 25% FY2014 EPS basic 10.78c up 27% Dividend/share 6.0c up 20% FSA operates across 3 key divisions Divisions - Services - Consumer Lending (previously ca
Slide 5: Core Division: Services
For personal use only Core Division Services 5
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 6
Slide 7: Services
Services For personal use only Largest provider – market share 45%* Over 18,000 clients, owing $313m to creditors Debt Agreements Low arrears, $81m paid to creditors in 2014 Superior returns to creditors compared to market Fee for service income, delivering annuity cash flow Personal Insolvency One
Slide 8: FSA is the leader in debt agreements
FSA is the leader in debt agreements For personal use only FSA’s Market Share Market Size FSA’s Market Total Number of Share % Agreements 60% 14,000 50% 12,000 40% 10,000 CAGR = 7.1% 8,000 30% 6,000 20% 4,000 10% 2,000 0% 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 8
Slide 9: Growth Divisions: Consumer Lending and Business Lending
For personal use only Growth Divisions Consumer Lending and Business Lending 9
Slide 10: Consumer Lending
Consumer Lending For personal use only FSA is one of the few remaining non-conforming home Home Loans loan lenders assisting clients with property who wish to consolidate their debt. FSA offers non-conforming personal loans to existing Personal Loans clients to assist with the purchase of a motor ve
Slide 11: Consumer Lending
Consumer Lending For personal use only Home Loans Personal Loans Loan Pool Size $221m Loan Pool Size $1.1m Average Loan Size $207,951 Average Loan Size $23,889 Average Weighted LVR 67% % Secured 100% Variable Rate Borrowers 100% Fixed Rate Borrowers 100% Geographical Spread Australia Wide Geographic
Slide 12: Business Lending
Business Lending For personal use only FSA Group offers factoring finance to assist small Business Lending businesses with cash flow management. Business Lending Funding Loan Pool Size $24m • Funding of $35m from WBC • Renewed to June 2015 Average Loan Size $294,240 • FSA 15% equity Average Weighted
Slide 13: Financial Results
For personal use only Financial Results 13
Slide 14: PBT by division
PBT by division For personal use only FY2012 FY2013 FY2014 % Services $11.6m $11.7m $11.2m -4% Consumer Lending $4.1m $5.1m $6.8m +34% Business Lending ($0.7m) $0.8m $2.8m +240% Other ($0.1m) $0.1m ($0.1m) - Profit before tax $14.9m $17.8m $20.8m +17% Home Loans pool $232m $221m $221m Personal Loans
Slide 15: Group financials
Group financials For personal use only FY2012 FY2013 FY2014 % Revenue and income $59.0m $64.4m $65.5m +2% Profit before tax $14.9m $17.8m $20.8m +17% Profit after tax 1 $8.5m $10.8m $13.5m +25% Operating cash flow 2 $9.4m $14.0m $12.0m -14% NTA backing/share 37.8c 42.3c 47.1c +11% EPS basic 6.27c 8.
Slide 16: PAT vs Operating cash flow vs Dividends
PAT vs Operating cash flow vs Dividends For personal use only 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 Net profit after tax attributable to members Net cash inflow from operating activities Dividends paid 16
Slide 17: What's underpinning operating cash flow?
What's underpinning operating cash flow? Long-term annuity income For personal use only Average client life (years) Services - Debt Agreements 4.5 to 5.5 - PIA/Bankruptcy 3 Consumer Lending - Home Loans 3 to 4 - Personal Loans 4 to 5 Business Lending 2.5 to 3.5 17
Slide 18: Growing loan pools - Capital requirements
Growing loan pools - Capital requirements For personal use only Operating cash flow - $14m in 2013 and $12m in 2014 Investing cash flow - CAPEX around $500k pa (stable) Business generating $12m plus a year in free cash flow Future capital requirements to support loan pool growth • Home Loans - $0.3m
Slide 19: Return on Equity
Return on Equity For personal use only 35% 30% 32% 25% 22% 20% 19% 20% 18% 15% 15% 13% 10% 5% 0% 2008 2009 2010 2011 2012 2013 2014 Growth in loan pools will be the key to growing profitability at an above average annual rate. ROE expected to increase as loan pools grow. 19
Slide 20: Where are we heading?
For personal use only Where are we heading? 20
Slide 21: Where are we heading?
Where are we heading? For personal use only Services Maintain our leading position in a niche market Consumer Lending Focus on growing our loan pools Business Lending Focus on growing our loan pools New Product Trial a new product to assist clients with paying their bills Staff Investing in professi
Slide 22: 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 23: Disclaimer
Disclaimer For personal use only • This presentation is designed to provide a general overview of the activities and financial position of FSA Group Limited. The material set out in the presentation is current as at the date of this presentation. It is information in summary form and does not purpor