Slide 1: FSA Group AGM Presentation
FSA Group AGM Presentation 18 November 2010
Slide 2: Agenda
Agenda 1. Chairman’s address 2. Executive Director’s address 3. Ordinary business FSA Group – AGM 2010 2
Slide 3: Chairman's address
Chairman’s address • FY2010 another successful year • Business impacted by unusual macro economic conditions ‐ which temporarily slowed client demand • Achieved a PAT of $7.52m down 15% on FY2009 • Strategy since 2007 ‐ to grow home loan lending and factoring finance loan pools ‐ annuity income. Fun
Slide 4: Executive Director's address
Executive Director’s address • Overview • Markets • Products and Services • Operational Performance • Outlook and FY2011 Profit Guidance FSA Group – AGM 2010 4
Slide 5: Overview and key investment highlights
Overview and key investment highlights 1. Founded in 2000, listed in 2002 2. FSA is Australia’s largest provider of debt solutions for individuals 3. 2007 transitioned from “fee for service” to “fee for service and lending” 4. Established lending business* which delivers secure, annuity income 5. FS
Slide 6: FSA operates in growth markets with high barriers to entry
FSA operates in growth markets with high barriers to entry FSA has 51% market share for Debt Agreements FSA is one of the few remaining non-conforming lenders Individuals who rely upon a Debt Individuals who are unlikely to Agreement (DA), or a Personal “conform” to the lending criteria Market Marke
Slide 7: Client acquisition
Client acquisition Direct client acquisition model Clients are ‘micro-managed’ efficiently • Via advertising and marketing • Assess client needs – TV, web etc. • Tailor solutions - affordable, • Controlled, selective, low cost sustainable and viable • No third party referral channels • Proactively m
Slide 8: Overview of products and services
Overview of products and services • Debt Agreements • Personal Insolvency Agreements • Bankruptcy • Other solutions FSA Group – AGM 2010 8
Slide 9: Services
Services Debt Agreements • Largest provider – FY2010 market share 51% • ‘Micro manages’ over $240m of unsecured debt on behalf of creditors under debt agreements • Fee for service income with recurring income Personal Insolvency Agreements and Bankruptcy • One of the largest registered trustees in A
Slide 10: Home loan broking, lending & management
Home loan broking, lending & management 2003 Home Loan Broking • Largest non-conforming broker in Australia • Up-front and trail commission • No balance sheet or funding risk 2007 Home Loan Lending • Current $235m non-recourse facility from Westpac for non-conforming lending • Lenders margin and ann
Slide 11: Operating Performance July to October
Operating Performance July to October FSA Group – AGM 2010 11
Slide 12: Services
Services Services – client numbers Jul – Oct 2010 vs. Jul – Oct 2009 Debt Agreements Up 12% Personal Insolvency Agreements and Up 19% Bankruptcy Services impacted by: • Continuing high levels of consumer debt • Government stimulus package ended • Higher interest rate environment FSA Group – AGM 2010
Slide 13: Home loan lending
Home loan lending FSA is one of the few remaining non‐conforming lenders operating in the market • Funding $235m from Westpac Home Loan Lending (Oct 2010) • Recently renewed to October 2012 Loan Pool Size $214m Security Type 1st Mortgage • Balance sheet risk limited to equity invested Average Loan S
Slide 14: Factoring finance to small businesses
Factoring finance to small businesses FSA also provides a range of debt solutions to small businesses, including factoring finance Factoring Finance (Oct 2010) • Funding $25m from Westpac Loan Pool Size $15m • Renewed to June 2012 Security Type Assigned Receivables • High quality demand due to diffi
Slide 15: Outlook and FY2011 Profit Guidance
Outlook and FY2011 Profit Guidance FSA Group – AGM 2010 15
Slide 16: Outlook: growth across all divisions
Outlook: growth across all divisions Growth in: Driven by: Services Continuing high levels of consumer debt Home Loan Lending Fewer competitors, stricter bank lending criteria Factoring Finance Difficulties for small businesses obtaining credit Home Loan Expansion into the larger prime home loan Man
Slide 17: FY2011 Profit guidance
FY2011 Profit guidance FY2010 FY2011 % Loan Pool Actual Guidance Change Average (Closing) Services $8.6m $8.5 ‐ $10.5m Home Loan Lending $3.4m $4.0m $225m ($240m) Business Services and Lending1 $0.9m $2.5m $16.5m ($20m) Profit Before Tax $12.9m $15 $17m Profit After Tax2 $7.5m $8.6 $10m 15% 33
Slide 18: PBT: Annuity contribution growing
PBT : Annuity contribution growing Fee for service PBT CAGR 2005 - 2010 = 50% Lending Guidance Profit before Tax FSA Group – AGM 2010 18
Slide 19: 2013 Targets
2013 Targets FSA Group – AGM 2010 19
Slide 20: 2013 Targets
2013 Targets Services PBT anticipated to grow at > 10% each year Home Loan Lending Aiming to grow loan pool from $214m to $600m Factoring Finance Aiming to grow loan pool from $15m to $45m New product launch ‐ tremendous opportunity Home Loan to capture market share in the larger prime Management ho
Slide 21: Investor relations contacts
Investor relations contacts Mr. Tim Odillo Maher Ms. Jeannene O’Day Executive Director Consultant FSA Group Limited Lyon Group Pty Limited Level 3, 70 Phillip Street Level 1, 175 Macquarie Street Sydney NSW 2000 Sydney NSW 2000 T: 02 9293 6054 T: 0439 865 256 F: 02 9293 6032 F: 02 9223 2811 E: tmahe
Slide 22: Disclaimer
Disclaimer • 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 the date of this presentation. It is information in summary form and does not purport to be complete. • Th
Slide 23: FSA Group AGM Presentation
FSA Group AGM Presentation 18 November 2010 FSA Group – AGM 2010