FSA GROUP LIMITED — AGM Information 2011

Oct 30, 2011

FSA Grou p AGM Presentation 31 October 2011

Agenda

1. Chairman’s address

2. Executive Director’s address

3. Ordinary business

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Chairman’s address

• A year of steady growth in an uncertain market

• PAT of $9.0m up 20% on FY2010

• Maiden dividend of 1c per share

• WBC increased and renewed funding facilities

• • BEN provided a new $50m funding facility

• • In a strong financial position

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Executive Director’s address

• Products and Services

• Financial Results

• Outlook and Capital Management

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Products and Services

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• Debt Agreements

• Personal Insolvency Agreements and Bankruptcy

• Other Solutions

• Home Loan Lending

• Home Loan Management

• Factoring Finance

• Consulting

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Services

Debt Agreements

• FSA is the largest provider - market share 53%*

• Clients under management up 30% on FY2010

• Manages over $270m of unsecured debt

• Consistent low level of arrears

• $63m paid to creditors up 13% on FY2010

• Superior rates of return to creditors compared to market

• Fee for service income, delivering “annuity” cash flow

Personal Insolvency Agreements and Bankruptcy

• FSA is one of the largest providers*

• Clients under management up 32% on FY2010

• Fee for service income, delivering “annuity” cash flow

• Calculated using ITSA statistics

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Home Loans

FSA is one of the few remaining non-conforming home loan lenders operating in the market

Home Loan Lending

• Non-recourse funding of $310m

• WBC $260m (renewed to Oct 2013)

• BEN $50m (to June 2014)

• Balance sheet risk limited to equity invested

• Lender’s margin and annuity income

Home Loan Management

• Recently launched into the prime home loan market as a manager for BEN

• No balance sheet or funding risk

	Home Loan Lending
	Loan Pool Size	$229m
	Average Loan Size	$206,000
	Average Weighted LVR	68%
	Full Doc Borrowers	98%
	Variable Rate Borrowers	100%
	Geographical Spread	Australia Wide
	>30 day arrears*	2.38%
	Loss of Capital since inception	$149,619

*Competitors >30 day arrears as reported by the Standard & Poors Index was 12.67% at May 2011

• Upfront and trail commission

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Small Business

FSA also provides a range of debt solutions to small businesses including factoring finance

Factoring Finance

• Limited-recourse funding of $25m from WBC (renewed to July 2012)

• Assigned receivables are credit insured

• L en d er s marg n an ’ i d annu it y ncome i

Consulting

• Provides a range of consulting services

• Fee for service income

	Factoring Finance	Factoring Finance
	Loan Pool Size	$12m
	Average Loan Size	$225,000
	Average Weighted LVR	Ranges 55%-65%
	Geographical Spread	Australia Wide
	> 90 day arrears	9.30%
	Asset Insured	Yes
	Loss of Capital since inception	NIL

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Financial Results

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Financial Results Revenue and Profit

Financial Results Revenue and Profit
	FY2010	FY2011	%
Revenue and Income	$50.8m	$54.1m	7%
Profit Before Tax	$12.9m	$15.3m	19%
Profit After Tax(Attributable to Members)	$7.5m	$9.0m	20%
Net Assets	$44.8m	$54.6m	22%
NTA/ share	28.4c	34.9c	23%
EPS Basic	5.82c	6.51c	12%
Full Franked Dividend/ share	-	1c

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Outlook and Capital Management

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Outlook and Capital Management

Outlook	Market environment remains uncertain and consumer confidence is low. Given this environment and the underpinning fear of unemployment people are spending less and saving more. This may result in a softening in demand for some of our products and services.
Dividends	Aiming to continue to pay a dividend for FY2012
On Market Buy-Back	To commence an on market buy-back

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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 S y d ney NSW 2000 S y d ney NSW 2000 T: 02 9293 6054 T: 02 9293 6058 F: 02 9293 6032 F: 02 9293 6032 E: tmaher@fsagroup.com.au E: dsouthon@fsagroup.com.au

Further information can be accessed from fsagroup.com.au

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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.

• 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 , g iven in relation to the future business p erformance 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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