Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2022)
22 slides from Fsa's shareholder meeting presentation, Nov 24, 2022
Slide 1: FSA Group AGM Presentation
FSA Group AGM Presentation 24 November 2022
Slide 2: Agenda
Agenda • Overview • 2022 Financial Year • Strategy and Outlook FSA Group Ltd AGM presentation 2022 2
Slide 3: Overview
Overview
Slide 4: What we do
What we do Direct lender to individuals and businesses Australia’s largest provider of debt solutions What we do FSA Group has helped thousands of Australians for more than 20 years. Our large and experienced team of professionals offer a range of lending products and debt solutions, which we tailor
Slide 5: Lending
Lending Offers home loans to assist clients wishing to purchase a Home Loans property or consolidate their debt. Offers personal loans to assist clients wishing to purchase a Personal Loans motor vehicle. Offers asset finance to assist SMEs wishing to purchase a Asset Finance vehicle and business-cr
Slide 6: Services
Services Informal Arrangements Offers a range of services to assist clients wishing to and Debt Agreements enter into a payment arrangement with their creditors. These services include informal arrangements, debt agreements, personal insolvency PIAs and Bankruptcy agreements and bankruptcy. FSA Grou
Slide 7: History
History Founded with director loans of $50,000. Offered debt agreements, 2000 PIA’s, bankruptcy, then home loan brokering 2002 Back door listing raised $600,000 for shareholder spread 2006 Commenced home loan lending 2009 Raised $5.2m to underpin home loan pools 2015 Commenced personal loan lending
Slide 8: 2022 Financial Year
2022 Financial Year
Slide 9: Summary
Summary Lending • Historically operated as a direct-to-consumer business. • Asset finance was acquired September 2021. This allows us to assist SMEs and therefore has broadened our client base. • Our focus is on further developing our broker channel and growing our loan pools. Services • The various
Slide 10: Lending - Loan Pools
Lending - Loan Pools Loan Pool Data Home loans Personal loans Asset finance Weighted average loan size $402,732 $22,494 $28,473 Vehicles and Security type Residential home Motor vehicle equipment Weighted average loan to 100%+ on 100%+ on 67% valuation ratio settlement settlement Variable or fixed r
Slide 11: Lending - Loan Pools
Lending - Loan Pools Arrears and hardships back at Pre-COVID levels Loan Pools FY2020 FY2021 FY2022 % Change Home loans $394m $382m $389m + 2% Personal loans $63m $65m $72m + 11% Asset finance $81m Total $457m $447m $541m + 21% Arrears > 30 day FY2020 FY2021 FY2022 Home loans 2.55% 1.04% 1.95% Perso
Slide 12: Lending - Funding
Lending - Funding Funding facilities renewed Borrowings Facility type Provider Limit Maturity date Drawn Non-recourse warehouse Westpac $350m Oct-23 $272m Home loans Non-recourse warehouse Institutional $20m Oct-23 $20m Securitised Institutional - Mar-51 $90m Limited recourse warehouse Westpac $75m
Slide 13: Services - Clients
Services - Clients New clients impacted by COVID Informals and Debt FY2020 FY2021 FY2022 % Change Agreements New clients 4,327 1,463 620 - 58% Clients under administration 19,736 15,780 11,252 - 29% Debt managed $363m $209m $109m - 48% Dividends paid $89m $85m $65m - 24% PIA's and Bankruptcy FY2020
Slide 14: PBT by segment
PBT by segment Positively impacted by long term annuity income from clients, a material reduction in costs and in the cost of funding FY2020 FY2021 FY2022 % Change Lending Home loans and Asset finance $7.4m $9.7m $10.0m +3% Personal loans $5.2m $7.5m $9.9m +32% Services $11.7m $12.1m $7.3m -39% Othe
Slide 15: Group financials
Group financials FY2020 FY2021 FY2022 % Change Operating income $68.2m $61.4m $58.3m -5% Profit before tax $24.8m $29.7m $26.9m -9% Profit after tax attributable to members $16.3m $20.1m $17.2m -14% EPS basic 13.05c 16.12c 13.72c -15% Net cash inflow from operating activities $19.4m $29.5m $26.2m -1
Slide 16: Balance Sheet
Balance Sheet Strong financial position FY2021 FY2022 Assets Cash and equivalents $18.9m $16.6m Restricted Cash $16.2m $19.3m Personal loan assets $64.9m $71.8m Home loan assets $382.5m $388.9m Asset finance assets - $80.8m Trade and other receivables $22.7m $17.4m Right of use assets $10.3m $9.2m O
Slide 17: Strategy and Outlook
Strategy and Outlook
Slide 18: Our plan over the next 3 to 5 years
Our plan over the next 3 to 5 years Further developing our broker channel and growing our loan pools Increase new origination to around $40m per month Home loans Grow our loan pool to around $1.2b Increase new origination to around $7m per month Personal loan Grow our loan pool to around $200m Incre
Slide 19: 2023 New origination
2023 New origination New Origination 350m 295m 300m 250m 227m 200m 64m Nov to Jun FY2023 Forecast 202m 151m 150m 126m 34m 31m 6m 100m 28m 32m 34m 128m 50m 92m 88m 17m Jul to Oct FY2023 Actual 42m m FY2020 FY2021 FY2022 FY2023 Home loans Personal loans Asset finance FSA Group Ltd AGM presentation 202
Slide 20: 2023 Earnings and Capital Management
2023 Earnings and Capital Management Services earnings will continue to be under pressure until demand returns. Lending earnings are being impacted by an increase in the cost of funding. Earnings Expect 2023 earnings to be down around 10% when compared to 2022. Expect our full year dividend to be 7
Slide 21: Investor Relations Contacts
Investor Relations Contacts Mr. Tim Odillo Maher Ms. Deborah Southon Executive Director Executive Director FSA Group Limited FSA Group Limited Level 13, 1 Oxford Street Level 13, 1 Oxford Street Darlinghurst NSW 2010 Darlinghurst NSW 2010 T: 02 8985 5090 T: 02 8985 5091 F: 02 8985 5310 F: 02 8985 53
Slide 22: Cautionary Statements and Disclaimer
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