Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2018)
26 slides from Fsa's shareholder meeting presentation, Nov 22, 2018
Slide 1: AGM Presentation
AGM Presentation 22 November 2018
Slide 2: Agenda
Agenda • Overview • Segments • Services • Consumer Lending • Financial Results 2018 • Strategy and Outlook and Amendments FSA Group Ltd AGM presentation 2018
Slide 3: Overview
Consumer Lending Overview Financial Results FSA Group Limited Sérvices' trategy and Outlook \V
Slide 4: Overview
Overview Australia’s largest provider of debt solutions; direct lender to individuals What we do For over 18 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: Services
Consumer Lending Overview Financial Results FSA Group Limited Service trategy and Outlook \V
Slide 6: Services
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 Group Ltd AGM presentation
Slide 7: Market
Market FSA Group Ltd AGM presentation 2018 7
Slide 8: FSA is the leader in debt agreements
FSA is the leader in debt agreements FSA Group Ltd AGM presentation 2018
Slide 9: Services
Services Debt Market share 39%* Agreements 7% increase in new clients 21,885 clients up 8% $398m of debt managed $82m paid to creditors Our market share remains under pressure. We will never sacrifice quality and customer benefit for volume and market share. PIAs and Largest Trustee Bankruptcy 17% i
Slide 10: Consumer Lending
onsumer Lending Overview Financial Results FSA Group Limited Sérvices' trategy and Outlook \V
Slide 11: Consumer Lending
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 2018 11
Slide 12: Loan pools
Loan pools Loan Pool Data Home Loans Personal Loans Average loan size $349,237 $24,978 Security type Residential home Motor vehicle Average loan to valuation ratio 67% 95% Variable or fixed rate Variable Fixed Geographical spread All states All states FSA Group Ltd AGM presentation 2018
Slide 13: Loan pools
Loan pools Loan Pools FY2016 FY2017 FY2018 % Change Home Loans $262m $306m $360m +18% Personal Loans $20m $35m $48m +35% Total $282m $342m $408m +19% Arrears > 30 day FY2015 FY2016 FY2017 FY2018 Home Loans 2.87% 2.17% 2.21% 1.40% Personal Loans Nil 0.59% 1.56% 1.55% Impairments FY2015 FY2016 FY2017
Slide 14: Loan pools - funding
Loan pools - funding Availability End Funding Facility Type Provider Limit Maturity Date Date Non-recourse senior Westpac $350m July 2019 October 2019 Home Loans Non-recourse senior Westpac $25m June 2019 September 2019 Non-recourse Institutional $25m July 2019 October 2019 mezzanine Recourse corpor
Slide 15: Financial Results
Consumer Lending Overview Financial Result FSA Group Limited Sérvices' trategy and Outlook \V
Slide 16: PBT by segment from continuing operations
PBT by segment from continuing operations Profit before tax by segment FY2016 FY2017 FY2018 % Change Services $14.2m $14.9m $15.1m +1% Consumer Lending $5.2m $7.0m $9.5m +36% Other/unallocated ($2.5m) $1.6m $0.3m Profit before tax $16.8m $23.5m $24.9m +6% Other/unallocated Includes the before tax ma
Slide 17: Group financials from continuing operations
Group financials from continuing operations Financial Overview FY2016 FY2017 FY2018 % Change Operating income $62.1m $70.6m $74.5m +6% Profit before tax $16.8m $23.5m $24.9m +6% Profit after tax attributable to $10.7m $15.4m $16.4m +7% members EPS basic 8.52c 12.27c 13.09c +7% Net cash inflow from o
Slide 18: Group financials from continuing operations, excluding impact of swap agreement
Group financials from continuing operations, excluding impact of swap agreement Normalised Financial Overview FY2016 FY2017 FY2018 % Change Normalised profit before tax $19.2m $22.1m $24.7m +12% Normalised profit after tax $12.3m $14.4m $16.2m +13% attributable to members Normalised EPS basic 9.85c
Slide 19: What's underpinning operating cash flow
What's underpinning operating cash flow Long-term annuity income FY2016 FY2017 FY2018 % Change Net cash inflow from operating $9.9m $11.1m $14.5m +30% activities No of clients / Average client loan pool size life in years - Debt Agreements 21,885 4.5 to 5.5 Services - PIA/Bankruptcy 1,253 3 - Home L
Slide 20: Strategy and Outlook
Corsumer Lending Overview Financial Results FSA Group Limited Services Strategy and Outlook
Slide 21: Remaining 2 years of our 5 years strategic plan 2016 - 2020
Remaining 2 years of our 5 years strategic plan 2016 - 2020 Services Maintain our leading position in a niche market Aiming to grow our loan pools to around $500m, broken down as Consumer Lending $400m for home loans and $100m for personal loans Earnings Expect earnings growth of 5% to 15% per annum
Slide 22: Preparing our business for the future
Preparing our business for the future We are offshoring a number of administrative tasks and automating others. A primary benefit of this initiative is that it allows our key staff to focus on critical roles such as their engagement with customers and other stakeholders; thus improving customer outc
Slide 23: Possible Senate Inquiry
Possible Senate Inquiry We are aware of a potential Senate inquiry into parts of the finance sector. Possible Senate We do not believe we will be called upon in relation to debt Inquiry agreements because of the inquiry conducted by the Senate Legal and Constitutional Affairs Legislation Committee i
Slide 24: Amendments to the Bankruptcy Act
Amendments to the Bankruptcy Act Amendments Will limit the time to repay debt under a debt agreement to 3 years for non-home owners while allowing those who own a home up to 5 years. Non-home owners may be adversely affected by this change as a 3 year term may not provide commercially acceptable rat
Slide 25: 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 26: 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