Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2023)
23 slides from Fsa's shareholder meeting presentation, Nov 24, 2023
Slide 1: AGM Presentation
FSA Group AGM Presentation 24 November 2023
Slide 2: Agenda
Agenda • Overview • 2023 Financial Year • Strategy and Outlook FSA Group Ltd AGM presentation 2023 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 secured personal loans to assist clients wishing to Personal Loans purchase a motor vehicle and unsecured personal loans for any approved purpose. Offers asset finance to assist SM
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: 2023 Financial Year
2023 Financial Year
Slide 9: At a Glance
At a Glance Lending • Developed and enhanced our broker channels. • Origination $314m (up 38%) and loan pools increased to $639m (up 18%). • Invested in end-to-end automation. • Two Australian banks providing warehousing facilities. Services • Financial institutions and government entities gradually
Slide 10: At a Glance
At a Glance Profitability • Impacted by • an increase in the cost of funding (cash rate) which materially impacted our margin on our fixed rate Lending products, • a decrease in the number of clients under administration in the Services segment. FSA Group Ltd AGM presentation 2023 10
Slide 11: Lending - Loan Pools
Lending - Loan Pools Personal loans Personal loans Loan Pool Data Home loans Asset finance secured unsecured Weighted average loan size $440,068 $26,928 $15,347 $28,473 Vehicles and Security type Residential home Motor vehicle Unsecured equipment Weighted average loan to 100%+ on 100%+ on 65% Unsecu
Slide 12: Lending - Loan Pools
Lending - Loan Pools Loan Pools FY2021 FY2022 FY2023 % Change Home loans $382m $389m $377m -3% Personal loans secured $64m $68m $98m +44% Personal loans unsecured $1m $4m $6m +42% Asset finance $81m $158m +95% Total $447m $541m $639m +18% Arrears > 30 day FY2021 FY2022 FY2023 Home loans 1.04% 1.95%
Slide 13: Lending - Funding
Lending - Funding Maturity Borrowings Facility type Provider Limit Drawn date Non-recourse warehouse Westpac $350m Oct-24 $293m Home loans Securitised Institutional - Mar-51 $57m Limited recourse warehouse Westpac $75m Apr-26 $54m Personal loans Corporate Westpac $15m Mar-24 - Asset finance Non-reco
Slide 14: Services - Clients
Services - Clients Debt Agreements FY2021 FY2022 FY2023 % Change New clients 1,463 620 568 -8% Clients under administration 15,780 11,252 6,316 -44% Debt managed $209m $109m $52m -52% Dividends paid $85m $65m $41m -36% PIA's and Bankruptcy FY2021 FY2022 FY2023 % Change New clients 89 97 100 +3% Clie
Slide 15: PBT by segment
PBT by segment FY2021 FY2022 FY2023 % Change Lending Home loans and Asset finance $9.7m $10.0m $9.2m -7% Personal loans $7.5m $9.9m $9.0m -5% Services $12.1m $7.3m $2.8m -64% Other/unallocated $0.4m ($0.2m) ($0.1m) - Profit before tax $29.7m $26.9m $21.0m -22% Impacted by • an increase in the cost o
Slide 16: Group financials
Group financials FY2021 FY2022 FY2023 % Change Operating income $61.4m $55.6m $54.6m -2% Profit before tax $29.7m $26.9m $21.0m -22% Profit after tax attributable to members $20.1m $17.2m $13.0m -25% EPS basic 16.12c 13.72c 10.63c -23% Net cash inflow from operating activities $29.5m $26.2m $22.3m -
Slide 17: Balance Sheet
Balance Sheet Strong financial position Consolidated Entity as at 30 June 2023 2023 2022 $ $ Assets Cash and cash equivalents $16.4m $16.6m Restricted cash $20.0m $19.3m Trade and other receivables $14.8m $17.4m Loans and advances $638.7m $541.5m Other assets $.3m $.6m Right of use assets $8.2m $9.2
Slide 18: Strategy and Outlook
Strategy and Outlook
Slide 19: Our Focus
Our Focus Lending Origination and Aiming to double new origination from our current $300m to over $600m Loan Pools per annum. This should see our loan pools grow to around $1.5b. Aiming to grow through automation which will likely see staff numbers hold at around current levels. Our business will be
Slide 20: 2024 Forecast - Origination up 30%, Loan Pools up 34%
2024 Forecast - Origination up 30%, Loan Pools up 34% New Origination and Loan Pools 450m 900m 852m 400m 800m 350m 700m 639m 300m 600m 541m 280m 250m 457m 500m 447m Budget Origination Nov 23 - Jun 24 Actual Origination 200m 400m Loan pools 150m 314m 300m 227m 100m 200m 151m 127m 127m 50m 100m m m FY
Slide 21: Capital Management
Capital Management We restructured our funding facilities to provide greater access to liquidity. This will allow us to execute our capital management strategy: 1. Invest in the growth of our loan pools where we see the highest risk adjusted return on capital. Capital Management 2. Return capital to
Slide 22: 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 23: 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