FSA GROUP LIMITED — AGM Information 2009

Nov 24, 2009

AGM Presentation and Investor Update November 2009

Agenda

1. Chairman’s Address

2. CEO’s Address

3. Ordinary business of today’s meeting

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FSA Group – AGM 2009

Chairman’s Address

• FY2009 another successful year – record revenue and profit

• Business is now approaching 10 years in operation

• Strategy since 2007 to grow home loan lending division to

• Assist more clients;

• Capture greater margin; and

• Secure annuity income.

• Results to date reflect success with this strategy

• Target is to grow home loan pool to $600 million by 2013

• Acknowledgements

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FSA Group – AGM 2009

CEO’s Address

• Key drivers of value

• Overview of FSA

• Operational performance

• FY2010 Guidance

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FSA Group – AGM 2009

Key drivers of FSA’s value

1. FSA is a leader in Australian debt solutions for individuals

2. Market for debt solutions is significant and growing

3. Established track record in lending which delivers secure, annuity income

4. Business performs irrespective of economic cycles

5. Competition has reduced as sector has consolidated

6. Business has extremely high barriers to entry

7. Solid track record of financial performance

8. FSA is positioned to deliver strong returns

FSA Group – AGM 2009

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Overview of FSA

CONSUMER DEBT MARKET

PERFORMING DEBTORS

• Founded in 2000, listed 2002

• FSA is the largest provider of debt solutions to individuals in Australia

• $227m* funding in place with Westpac for lending

• Substantial shareholdings by founding directors & key management

FSA provides debt solutions which enable

individuals to restructure their debt

*$210m non-recourse funding and $10m limited recourse funding

FSA Group – AGM 2009

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FSA’s integrated business model Overview of roducts and services p

• Informal Arrangement

• Debt Agreement (DA)

• Personal Insolvency Agreement (PIA)

For clients with property

60%

40%

• Bankruptcy

• Other solutions

FSA Group – AGM 2009

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Services

• Largest provider of Debt Agreements in Australia – FY09 market share 54%

• Informal Arrangement

• Debt Agreement (DA)

• Personal Insolvency Agreement (PIA)

• Bankruptcy

• Other solutions

• “Micro manages” over $200m of unsecured debt on behalf of institutional creditors

• Barriers to entry are high – debt agreement administrators require a substantial capital base

• One of the largest registered trustees in Australia – PIA’s and Bankruptcies

• Fee for service income with recurring income component

FSA Group – AGM 2009

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Home Loan Broking & Lending

Non-conforming

Borrowers who fit outside the lending criteria of mainstream lenders. Normally credit impaired and need to consolidate debt.

60%

In 2007 FSA brokered 100%

• 100% non-conforming home loan broking business

• Largest non-conforming broker in Australia

• $20m to $25m settled per month

40%

• Up-front and trail commission only

2007 onwards - broking & lending

• Secured $210m non-recourse facility from Westpac

• Extension to existing model

• Assist more clients and capture greater margin

• Secure annuity income

FSA Group – AGM 2009

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Operating Performance July to October 2009

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FSA Group – AGM 2009

Services

July to Oct FY09 vs FY08 FY10 vs FY09 Services Debt A reements 37% 10% g PIA’s and Bankru tc 22% 9% p y

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Debt Agreements Lodged with ITSA
CY 2008 CY2009
500
400
300
200
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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IMPACTED BY

• Government stimulation package

• Lower interest rate environment

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FSA Group – AGM 2009

Home Loan Broking

July to Oct FY09 vs FY08 FY10 vs FY09

Home Loan Broking 18% 50%

Home Loan Broking Loan Approvals

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CY 2008 CY 2009
300
250
200
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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IMPACTED BY

• Lower interest rate environment

• Improvement in availability of credit

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FSA Group – AGM 2009

Home Loan Lending

Arrears Performance

Over 30 day arrears FSA vs Competitors*

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18.00%
16.00%
14.00%
12.00% Competitors
10.00%
8.00%
FSA
6.00%
4.00%
2.00%
Cash Rate
0.00%
Month ending Source: Standard & Poor’s
Jan-08Feb-08Mar-08Apr-08May-08Jun-08Jul-08Aug-08Sep-08Oct-08Nov-08Dec-08Jan-09Feb-09Mar-09Apr-09May-09Jun-09Jul-09Aug-09Sep-09Oct-09
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• Low over 30 day arrears ~ 4% (Competitors ~13%)

• High proportion of income verified “Full Doc” borrowers ~ 95% (Competitors ~35%)

• Low LVR : weighted average ~67% (Competitors ~74%)

FSA Group – AGM 2009

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Home Loan Lending – Loan Pool

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Home Loan Lending - Loan Pool
Loan Pool Size
$150
$120
$90
$60
$30
$-
Millions
Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09
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• Aiming to grow loan pool to $600m by FY2013

• Currently lending to around 40% of potential clients – planning to increase this percentage by expanding product range

• Additional funding required to grow volumes

• Currently exploring options to increase funding capacity

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FSA Group – AGM 2009

Small Business Lending – Loan Pool

• FSA also provides a range of debt solutions to small businesses

• Provides factoring finance underpinned by Westpac $10m limited recourse facility

• $7.2m outstanding

• Average size $138,000

• LVR 55% (ie assigned trade receivables of $13.1m)

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$10m facility secured
through Westpac
Internally funded
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• All trade receivables are credit insured

• Aiming to grow loan pool to $12-14m by the end of June 2010

• Currently exploring options to increase funding capacity

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FSA Group – AGM 2009

FY2010 Profit Guidance

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FSA Group – AGM 2009

PBT Guidance for FY2010 - unchanged

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$ m
$14.5m to
1 H 2 H
$19.0m
$14.0m 65%
$9.5m
to
$12.5m
$9.7m
65%
62%

$4.7m 35%
$5m
63% to
35%
38% $6.5m
37%
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Guidance
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• Transitioned to home loan lending – one-off downward pressure on profit

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FSA Group – AGM 2009

Investor Relations Contact

Mr. Tim Odillo Maher Mr. Duncan Cornish Ms. Jeannene O’Day Executive Director Secretary Investor Relations Consultant FSA Group Limited FSA Group Limited Lyon Group Pty Limited Level 3, 70 Phillip Street Level 5, 10 Market Street Level 31, 88 Phillip St Sydney NSW 2000 Brisbane QLD 4000 Sydney NSW T 02 9293 6054 T 07 3212 6299 T 0439 865 256 F 02 9293 6032 F 07 3212 6250 F 02 9440 4049 E tmaher@fsagroup.com.au E dcornish@fsagroup.com.au E joday@lyongrp.com

Further information can be accessed from fsagroup.com.au

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FSA Group – AGM 2009

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 November 2009. It is information in summary form and does not purport to be complete.

• This presentation includes forward looking statements about estimates and outcomes which may be affected by internal and external factors and involve known and unknown risks which may cause actual results and business performance to differ from those expressed or implied in such statements. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or the likelihood that the assumptions, estimates or outcomes will be achieved.

• Whilst management has taken every effort to ensure the accuracy of the material in this presentation, it is provided for information only. FSA Group Limited, its officers and management exclude and disclaim any liability in respect of anything done in reliance on this presentation.

• It is not intended that the material in this presentation be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered with or without professional advice, when deciding if an investment is appropriate.

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FSA Group – AGM 2009

AGM Presentation and Investor Update November 2009