Fsa Group Limited · ASX:FSA
Fsa — Shareholder Meeting (November 2021)
26 slides from Fsa's shareholder meeting presentation, Nov 25, 2021
Slide 1: AGM Presentation
FSA Group AGM Presentation 25 November 2021
Slide 2: Agenda
Agenda • Overview • 2021 Financial Year • Segments • Services • Lending • Financials • Our plan over the next 3 to 5 years • 2022 Earnings and Capital Management FSA Group Ltd AGM presentation 2021 2
Slide 3: Overview
Overview
Slide 4: What we do
What we do Australia’s largest provider of debt solutions; direct lender to individuals What we do For over 20 years, FSA has helped thousands of Australians. Our large and experienced team of professionals offer a range of debt solutions and direct lending services, which we tailor to suit individu
Slide 5: Services
Services Informal Arrangements FSA offers a range of services to assist clients wishing and Debt Agreements to enter into a payment arrangement with their creditors. These services include informal arrangements, debt agreements, personal insolvency PIAs and Bankruptcy agreements and bankruptcy. FSA
Slide 6: Lending
Lending Home Loans FSA offers home loans to assist clients wishing to purchase a property or consolidate their debt. Personal Loans FSA offers personal loans to assist clients wishing to purchase a motor vehicle. FSA Group Ltd AGM presentation 2021 6
Slide 7: History
History Founded with director loans of $50,000. Initial offering debt 2000 agreements then PIA’s and 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 person
Slide 8: 2021 Financial Year
2021 Financial Year
Slide 9: Summary
Summary Services • COVID impacted and continues to impact the number of new callers seeking our assistance. • In response we restructured parts of our business to materially reduce costs. • We expect demand will start to return during 2H FY2022. Lending • During the year we focused on arrears and ha
Slide 10: Services - Clients
Services - Clients New clients impacted by COVID Informals and Debt FY2019 FY2020 FY2021 % Change Agreements New clients 4,573 4,327 1,463 -66% Clients under administration 21,725 19,736 15,780 -20% Debt managed $379m $353m $209m -41% Dividends paid $88m $89m $85m -5% PIA's and Bankruptcy FY2019 FY2
Slide 11: Lending - Loan Pools
Lending - Loan Pools Loan Pool Data Home Loans Personal Loans Weighted average loan size $360,528 $21,462 Security type Residential home Motor vehicle Weighted average loan to valuation ratio 67% 83% Variable or fixed rate Variable Fixed Geographical spread All states All states FSA Group Ltd AGM pr
Slide 12: Lending - Loan Pools
Lending - Loan Pools Arrears and hardships back at Pre-COVID levels Loan Pools FY2019 FY2020 FY2021 % Change Home loans $382m $394m $382m -3% Personal loans $59m $63m $65m +3% Total $441m $457m $447m -2% Arrears > 30 day FY2019 FY2020 FY2021 Home loans 1.42% 2.55% 1.04% Personal loans 3.36% 2.41% 1.
Slide 13: Lending - Funding
Lending - Funding Funding facilities renewed Maturity Funding Facility Type Provider Limit Drawn Date Non-recourse warehouse Westpac $350m Oct-23 $230m Home Loans Non-recourse warehouse Institutional $20m Oct-23 $18m Securitised Institutional Mar-51 $130m Limited recourse Westpac $75m Apr-26 $42m wa
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 % Change Services $11.7m $12.1m +3% Home Loans $7.4m $9.7m +30% Lending Personal Loans $5.2m $7.5m +45% Other/unallocated $0.4m $0.4m Profit before tax
Slide 15: Group financials
Group financials FY2020 FY2021 % Change Operating income $68.2m $61.4m -10% Profit before tax $24.8m $29.7m +20% Profit after tax attributable to members $16.3m $20.1m +23% EPS basic 13.05c 16.12c +23% Net cash inflow from operating activities $19.4m $29.5m +52% Dividend/share 6c 6c Shareholder equi
Slide 16: Operating cash flow
Operating cash flow Positively impacted by long term annuity income from clients, a material reduction in costs and in the cost of funding FY2019 FY2020 FY2021 % Change Net cash inflow from $17.1m $19.4m $29.5m +52% operating activities No of clients / Average client loan pool size life in years Ser
Slide 17: Balance Sheet
Balance Sheet Strong financial position FY2020 FY2021 Assets Cash and equivalents $8.0m $18.9m Restricted Cash $31.9m $16.2m Personal loan assets $63.2m $64.9m Home loan assets $393.8m $382.5m Trade and other receivables $27.0m $22.7m Right of use assets $11.5m $10.3m Other assets $3.6m $4.3m Intang
Slide 18: Our plan over the next 3 to 5 years
Our plan over the next 3 to 5 years Reshaping Our Future
Slide 19: Expand lending offering to assist SMEs
Expand lending offering to assist SMEs • FSA’s subsidiary Azora Finance Group P/L (Azora) operates our home loan lending business. • In September 2021, Azora acquired an asset finance lending business owned by Tuttle, Holmes and Sullivan (PDP). Lends to SMEs for vehicles and business-critical equipm
Slide 20: Expand lending offering to assist SMEs
Expand lending offering to assist SMEs • Azora is managed by PDP. • Azora is owned 76% by FSA and 24% by PDP. • PDP have been issued Performance Shares (PS) which will progressively convert into ordinary shares if Azora achieves annual PBT of up to and greater than $30m on or before 2026. If all PS
Slide 21: Digitisation and unsecured personal loans
Digitisation and unsecured personal loans • Focus on a digital future - Building a new technology platform which will automate the customer application process, the underwriting decisions with digital loan contracts and same day funding. • Expand our lending offering into unsecured personal loans. F
Slide 22: Develop broker channel, grow loan pools
Develop broker channel, grow loan pools Services Regrow as demand returns Increase origination from around $10m to $40m per month Home Loans Grow loan pool from $382m to around $1.2b Increase origination from around $3m to $7m per month Personal Loans Grow loan pool from $65m to around $200m Increas
Slide 23: 2022 Earnings and Capital Management
2022 Earnings and Capital Management
Slide 24: 2022 Earnings and Capital Management
2022 Earnings and Capital Management We expect FY2022 earnings to be in line with FY2021. Earnings The impact of COVID will start to negatively impact our Services earnings during FY2023. We expect this to be offset by increased Lending earnings. Due to our strong net cash inflow driven by long term
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 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 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