Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2009)
20 slides from Fsa's shareholder meeting presentation, Nov 25, 2009
Slide 1: AGM Presentation and Investor Update
For personal use only AGM Presentation and Investor Update November 2009
Slide 2: Agenda
Agenda For personal use only 1. Chairman’s Address 2. CEO’s Address 3. Ordinary business of today’s meeting FSA Group – AGM 2009 2
Slide 3: Chairman's Address
Chairman’s Address For personal use only • FY2009 another successful year – record revenue and profit • Business is now approaching 10 years in operation • Strategy since 2007 to grow home loan lending division to • Assist more clients; • Capture greater margin; and • Secure annuity income. • Result
Slide 4: CEO's Address
CEO’s Address For personal use only • Key drivers of value • Overview of FSA • Operational performance • FY2010 Guidance FSA Group – AGM 2009 4
Slide 5: Key drivers of FSA's value
Key drivers of FSA’s value For personal use only 1. FSA is a leader in Australian debt solutions for individuals 2. Market for debt solutions is significant and growing 3. Established track record in lending which delivers secure, annuity income 4. Business performs irrespective of economic cycles 5
Slide 6: Overview of FSA
Overview of FSA For personal use only CONSUMER DEBT MARKET • Founded in 2000, listed 2002 • FSA is the largest provider of debt solutions to individuals in PERFORMING Australia DEBTORS • $227m* funding in place with Westpac for lending • Substantial shareholdings by founding directors & key DISTRESS
Slide 7: FSA's integrated business model
FSA’s integrated business model Overview of products and services For personal use only For 60% • Informal Arrangement clients • Debt Agreement (DA) with • Personal Insolvency property Agreement (PIA) 40% • Bankruptcy • Other solutions FSA Group – AGM 2009 7
Slide 8: Services
Services For personal use only • Largest provider of Debt Agreements in Australia – FY09 market share 54% • “Micro manages” over $200m of unsecured debt on behalf of institutional creditors • Barriers to entry are high – debt agreement administrators require a substantial capital • Informal Arrangem
Slide 9: Home Loan Broking & Lending
Home Loan Broking & Lending For personal use only Non-conforming Borrowers who fit outside the lending criteria of mainstream lenders. Normally credit impaired and need to consolidate debt. In 2007 FSA brokered 100% 60% • 100% non-conforming home loan broking business • Largest non-conforming broker
Slide 10: Operating Performance July to October 2009
For personal use only Operating Performance July to October 2009 FSA Group – AGM 2009 10
Slide 11: Services
Services For personal use only July to Oct FY09 vs FY08 FY10 vs FY09 Services Debt Agreements 37% 10% PIA’s and Bankruptcy 22% 9% Debt Agreements Lodged with ITSA CY 2008 CY2009 IMPACTED BY • Government stimulation package 500 • Lower interest rate 400 environment 300 200 100 Jan Feb Mar Apr May Jun
Slide 12: Home Loan Broking
Home Loan Broking For personal use only July to Oct FY09 vs FY08 FY10 vs FY09 Home Loan Broking 18% 50% Home Loan Broking Loan Approvals IMPACTED BY CY 2008 CY 2009 • Lower interest rate 300 environment 250 • Improvement in 200 availability of credit 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 13: Home Loan Lending – Arrears Performance
Home Loan Lending For personal use only Arrears Performance Over 30 day arrears FSA vs Competitors* 18.00% 16.00% 14.00% 12.00% Competitors • Low over 30 day arrears ~ 4% 10.00% (Competitors ~13%) 8.00% • High proportion of income verified 6.00% FSA “Full Doc” borrowers ~ 95% 4.00% (Competitors ~35%
Slide 14: Home Loan Lending – Loan Pool
Home Loan Lending – Loan Pool For personal use only Home Loan Lending - Loan Pool Loan Pool Size • Aiming to grow loan pool to $600m by FY2013 Millions $150 • Currently lending to around 40% of $120 potential clients – planning to $90 increase this percentage by $60 expanding product range $30 • Add
Slide 15: Small Business Lending – Loan Pool
Small Business Lending – Loan Pool For personal use only • FSA also provides a range of debt solutions to small businesses • Provides factoring finance underpinned by Westpac $10m limited recourse facility • $7.2m outstanding • Average size $138,000 • LVR 55% (ie assigned trade receivables of $13.1m
Slide 16: FY2010 Profit Guidance
For personal use only FY2010 Profit Guidance FSA Group – AGM 2009 16
Slide 17: PBT Guidance for FY2010 - unchanged
PBT Guidance for FY2010 - unchanged For personal use only $m $14.5m to 1H 2H $19.0m $14.0m 65% $9.5m to Guidance $12.5m $9.7m 65% 62% * $4.7m 35% $5m 63% to 38% 35% $6.5m 37% * Transitioned to home loan lending – one-off downward pressure on profit FSA Group – AGM 2009 17
Slide 18: Investor Relations Contact
Investor Relations Contact For personal use only Mr. Tim Odillo Maher Mr. Duncan Cornish Ms. Jeannene O’Day Executive Director Secretary Investor Relations Consultant FSA Group Limited FSA Group Limited Lyon Group Pty Limited Level 3, 70 Phillip Street Level 5, 10 Market Street Level 31, 88 Phillip
Slide 19: 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 November 2009. It is information in summary form and does not purport to be complete
Slide 20: For personal use only
For personal use only AGM Presentation and Investor Update November 2009