Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2008)
19 slides from Fsa's shareholder meeting presentation, Nov 27, 2008
Slide 1: AGM Presentation
For personal use only AGM Presentation 27 November 2008
Slide 2: 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 27 November 2008. It is information in summary form and does not purport to be compl
Slide 3: The Market
The Market For personal use only • Household debt to household disposable income at a record 160% • Consumer and small business debt at record levels - credit card debt a record $44 billion • Increase in mortgage and credit card arrears over last 12 months • Expected increase in individual and corpo
Slide 4: FSA Group – Market Leader
FSA Group – Market Leader For personal use only • Bad economic conditions = Good for FSA Group’s growth • FSA Group is the largest provider of debt solutions to individuals and small businesses in Australia • Debt solutions broadened to include a range of direct lending services • Funding lines from
Slide 5: The Profit Centres of FSA Group
The 3 Profit Centres of FSA Group For personal use only Direct Lending - Debt Solutions - Debt Solutions - Individuals & Individuals Businesses Businesses • Debt Agreement • Consulting • Mortgage Finance • Mortgage Finance • Finance • Bridging Finance (as broker) (as broker) • Factoring Finance • Pe
Slide 6: Debt Agreements
Debt Agreements For personal use only • Allows an indebted individual to come to an arrangement with their creditors – an alternative to bankruptcy • Average number of clients assisted per month: • FY2007 – 307 • FY2008 – 339 up 10.4% • July to October 2008 – 428 up 26.3% • November 2008 estimated –
Slide 7: Debt Agreements
Debt Agreements For personal use only • Average dividends paid to financial institutions per month: • FY2007 – $1.87m • FY2008 – $2.44m up 30.5% • July to October 2008 – $3.36m up 37.7% • Full year dividends estimated FY2009 > $40m (FY2008 $29m) • Debt agreements pay superior dividends to bankruptcy
Slide 8: Mortgage Finance (as Broker)
Mortgage Finance (as Broker) For personal use only • Largest broker of non-conforming residential mortgages in Australia • Brokers new business > $200m per annum • > 60% of conditional approvals brokered internally through funding facility
Slide 9: Mortgage Finance (as Broker)
Mortgage Finance (as Broker) For personal use only • Average number of conditional approvals per month: • FY2007 – 189 • FY2008 – 188 • July to October 2008 – 147 down 21.8% – due to high interest rate environment – difficult for borrowers to service • November 2008 estimate – 205 – interest rates f
Slide 10: Personal Insolvency Agreements & Bankruptcy
Personal Insolvency Agreements & Bankruptcy For personal use only • Registered Trustee in Bankruptcy provides solutions to insolvent individuals with higher incomes and assets • Average number of clients assisted per month: • FY2007 – 11 • FY2008 – 16 up 45.5% • July to October 2008 – 21 up 31.3% •
Slide 11: Small Business – Consulting and Finance (as Broker)
Small Business – Consulting and Finance (as Broker) For personal use only • Offers a range of debt solutions to small businesses • The brokering of finance plays a critical role in the debt solutions provided • Strong demand being experienced due to tightening of bank credit to small businesses • Wo
Slide 12: Direct Lending
Direct Lending For personal use only • Acts as direct lender offering mortgage finance to individuals and bridging and factoring finance to small businesses • Funding lines from of $227m* • Direct lending allows FSA Group to: • Assist more clients • Diversify and increase income • Capture greater ma
Slide 13: Mortgage Finance
Mortgage Finance For personal use only • $210m non-recourse funding facility from • High quality loan pool of $120m • Low > 30 day arrears : < 5% (industry average >15%) • High concentration of income certified “Full Doc” borrowers : > 85% • Low “loan to valuation ratios” : weighted average < 66% •
Slide 14: Mortgage Finance
Mortgage Finance For personal use only • Net Interest Margin improving significantly due to falling interest rates • Exceptional annuity income • Nominal cost of acquisition – bolt on division • Low operating cost base • Very high return on equity – equity contribution 1% of loan pool size 14
Slide 15: Bridging Finance
Bridging Finance For personal use only • $7m full-recourse funding facility from • Current loan pool of $8m • Demand > Supply • Growth the next 12 months will be constrained due to caution in obtaining exit refinancing as a result of the tightening of bank credit 15
Slide 16: Factoring Finance
Factoring Finance For personal use only • $10m limited-recourse funding facility from • Current loan pool $2m • Growth previously constrained due to funding – facility recently approved in October 2008 • Strong growth expected the next 12 months • Forecast loan pool size > $8m by June 2009 • Strong
Slide 17: Growth Strategy
Growth Strategy For personal use only • Organic Growth – driven by direct advertising and third party referral model • Aiming to double the number of clients assisted by end of FY2010 • Growth in direct lending – delivers longer term annuity income streams • Developing new products to meet the needs
Slide 18: Guidance for FY2009 Reconfirmed
Guidance for FY2009 Reconfirmed For personal use only • Profit Before Tax (before minority interests) $10.5m up 120% • Profit After Tax (attributable to members) $6.6m up 145% • Net Tangible Asset Backing per Share 21.8c • Basic Earnings per Share 5.53c The positive impact on profit from the transit
Slide 19: Investor Relations Contact
Investor Relations Contact For personal use only Mr Tim Odillo Maher Level 3 Executive Director 70 Phillip Street FSA Group Limited Sydney NSW 2000 Tel: (02) 9293 6054 Fax: (02) 9293 6032 Further information can be accessed from www.fsagroup.com.au 19