FSA GROUP LIMITED — AGM Information 2012

Oct 28, 2012

FSA Grou p AGM Presentation 29 October 2012

Agenda

1. Chairman’s address

2. Executive Director’s address

3. Ordinary business

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Chairman’s address

• A year of continued growth in an uncertain market

• PAT of $8.5m down 5% on FY2011

• Interim dividend of 0.65c per share

• Final dividend of 1.55c per share

• Bought back 8 . 8m shares on market

• In a strong financial position

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Executive Director’s address

• Products and Services

• Financial Results

• Outlook, Guidance 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

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Services

Debt Agreements

• FSA is the largest provider - market share 50%*

• Clients under management up 16% on FY2011

• Manages over $300m of unsecured debt

• Consistent low level of arrears

• $73m paid to creditors up 16% on FY2011

• 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 19% on FY2011

• 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 $288m

• WBC $238m (renewed to Oct 2015)

• BEN $50m (to June 2014)

• Balance sheet risk limited to equity invested

• Lender’s margin and annuity income

Home Loan Management

	Home Loan Lending
	Loan Pool Size	$232m
	Average Loan Size	$232,000
	Average Weighted LVR	67%
	Full Doc Borrowers	99%
	Variable Rate Borrowers	100%
	Geographical Spread	Australia Wide
	>30 day arrears*	2.66%

• Prime home loan manager for BEN

• No balance sheet or funding risk

• Upfront and trail commission

*Competitors >30 day arrears as reported by the Standard & Poors Index was 11.87% at April 2012

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Small Business

FSA provides factoring finance to small businesses

Factoring Finance

• Limited-recourse funding of $25m from WBC (renewed to July 2013)

• Temporary increase to $30m, aiming to negotiate $35m

• Assigned receivables are credit insured

• Lender’s margin and annuity income

	Factoring	Finance
	Loan Pool Size	$25m
	Average Loan Size	$372,000
	Average Weighted LVR	Ranges 55%-65%
	Geographical Spread	Australia Wide
	> 90 day arrears	6.52%
	Asset Insured	Yes

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Financial Results

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Financial Results Revenue and Profit

Financial Results Revenue and Profit
	FY2011	FY2012	%
Revenue and income	$54.1m	$59.0m	9%
Profit before tax	$15.3m	$14.9m	3%
Profit after tax(attributable to members)	$9.0m	$8.5m	5%
NTA backing/share	34.9c	37.8c	8%
EPS Basic	6.51c	6.27c	4%
Full franked dividend/share	1c	2.2c

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O ut l oo k G id ance an d C i ta l , u ap Management

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Outlook, Guidance and Capital Management

Outlook	The market environment continues to remain uncertain. Consumer debt levels are however at a record high and demand for our products and services is steady
Profit Guidance	FY2012 PAT $8.5m Expected FY2013 PAT in the range of $9.5m to $9.8m (up 12% to 15%)
Dividends	Aiming to continue to pay a dividend for FY2013
On Market Buy-Back	To continue with on market share buy-back. Proposed AGM resolution for up to 12m shares

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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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