FSA GROUP LIMITED — AGM Information 2024

Nov 21, 2024

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FSA Group AGM Presentation 22 November 2024

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Overview

What we do

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Direct lender to individuals and businesses

What we do

FSA Group has helped thousands of Australians for more than 20 years. Our large and experienced team of professionals offer a range of lending products, which we tailor to suit individual circumstances to achieve successful outcomes for our clients.

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FSA Group Ltd AGM presentation 2024

Lending

Home Loans

Car Loans

Unsecured Personal Loans Asset Finance

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Offers home loans to assist clients wishing to purchase a property or consolidate their debt.

Offers secured car loans to assist clients wishing to purchase a motor vehicle.

Offers unsecured personal loans to assist clients for any approved purpose.

Offers asset finance to assist SMEs wishing to purchase a vehicle and business-critical equipment.

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FSA Group Ltd AGM presentation 2024

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2024 Financial Year

Our Achievements

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Completed our transition to a lending business

• Continued to expand our broker channels.

• Further invested in our systems.

• Increased and renewed our warehouse facilities.

• Increased new origination to $385m, up 23%

• Increased our loan pools to $801m, up 25%.

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FSA Group Ltd AGM presentation 2024

New Origination and Loan Pools

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FSA Group Ltd AGM presentation 2024

Loan Pool Data

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FSA Group Ltd AGM presentation 2024

New Origination and Loan Pools

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Loan pools increased to $801m, up 25%.

Growth came from car loans, up 35%, asset finance up 64%, which are fixed rate loans. % of fixed rate loans increased to 51% in 2024.

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FSA Group Ltd AGM presentation 2024

Arrears and Losses

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During 2024, arrears were impacted by cost of living pressures and rising rates. We continue to work closely with our clients to ensure we achieved positive outcomes.

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• Losses are realised losses less recovery. ECL is not reflected in these numbers.

** The asset finance loss of $3,198,871 excludes a loss of $463,989 on loans originated between April 2021 and May 2022. These loans were part of a discontinued pilot lease product offering.

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FSA Group Ltd AGM presentation 2024

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Warehouse Facilities

We have two Australian banks providing warehousing facilities. During the year we increased and renewed our warehouse facilities. As our loan pools grow, we expect to further increase these facilities. Plan to use the debt capital markets, as we did in 2019, to diversify our funding from time to time.

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• The senior non-recourse facilities are supported by mezzanine non-recourse facilities provided by institutional fund managers.

** The home loan facility was increased to $400m in July 2024.

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FSA Group Ltd AGM presentation 2024

Operating Income

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Our net margin %, calculated as the percentage of net finance income to finance income, declined from 74% in 2022 to 47% in 2024, primarily due to the rising cash rate.

Since May 2022 the cash rate has increased by 4.25%, which impacted the net margin on these fixed rate loans. The greatest impact has been on fixed rate loans originated prior to May 2022. This impacted the profitability of our lending business.

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FSA Group Ltd AGM presentation 2024

Profitability

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• Generated a PBT of $12.6m, a 40% decrease compared to 2023.

• Our lending business generated a PBT of $14.8m.

• Our services business, now classified under “Other”, generated a loss of $2.2m. We placed Services into “hibernation” due to Covid-19. It is expected Services will be profitable but will not make a material contribution to profit for the next few years.

• Profitability of our lending business was impacted by the rising cash rate which materially impacted the net margin on our fixed rate loans.

• Our fixed rate loans have an average life of approximately 3.5 years.

• Over time our net margin will improve as new originations are originated at higher risk adjusted fixed rates.

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FSA Group Ltd AGM presentation 2024

Group financials

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FSA Group Ltd AGM presentation 2024

Balance Sheet

Strong financial position

	Consolidated Entity	Consolidated Entity
as at 30 June 2024	2024	2023
	$	$
Assets
Cash and cash equivalents	$5.4m	$16.4m
Restricted cash	$22.4m	$20.0m
Trade and other receivables	$11.6m	$14.8m
Loans and advances	$801.4m	$638.7m
Right of use assets	$7.1m	$8.2m
Intangible assets	$14.0m	$14.6m
Other assets	$5.3m	$4.5m
Total Assets	$867.1m	$717.2m
Liabilities
Trade and other payables	$3.6m	$3.7m
Financing liabilities	$748.0m	$591.0m
Lease liabilities	$8.1m	$9.1m
Other liabilities	$7.2m	$12.1m
Total Liabilities	$766.9m	$615.9m
Net Assets	$100.3m	$101.3m

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Liquidity:

• Loans and advances funded on balance sheet, not assigned to warehouses $23m

• Undrawn corporate facility $15m

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Strategy

Strategy

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FSA Group Ltd AGM presentation 2024

Strategy

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FSA Group Ltd AGM presentation 2024

Investor Relations Contacts

Mr. Tim Odillo Maher Executive Director FSA Group Limited Level 13, 1 Oxford Street Darlinghurst NSW 2010 T:02 8985 5090 F:02 8985 5310 E: tmaher@fsagroup.com.au	Ms. Deborah Southon Executive Director FSA Group Limited Level 13, 1 Oxford Street Darlinghurst NSW 2010 T:02 8985 5091 F:02 8985 5333 E:dsouthon@fsagroup.com.au

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Further information can be accessed from fsagroup.com.au

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FSA Group Ltd AGM presentation 2024

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 typically identified by words such as “plan,” “aim”, “focus”, “target”, “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions.

The forward-looking statements contained in this release are predictive in character and not guarantees or assurances of future performance. These forward-looking statements involve and are subject to known and unknown risks and uncertainties many of which are beyond the control of the Company. Our ability to predict results or the actual effects of our plans and strategies is subject to inherent uncertainty.

Factors that may cause actual results or earnings to differ materially from these forward-looking statements include general economic conditions in Australia, interest rates, competition in the markets in which the Company does and will operate, and the inherent regulatory risks in the businesses of the Company, along with the credit, liquidity and market risks affecting the Company’s financial instruments described in the Company’s latest Annual Report.

Forward-looking statements are based on assumptions regarding the Company’s financial position, business strategies, plans and objectives of management for future operations and development and the environment in which the Company will operate. Those assumptions may not be correct or exhaustive.

Because these forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements.

Forward-looking statements are based on current views, expectations and beliefs as at the date they are expressed. The Company disclaims any responsibility to and undertakes no obligation to update or revise any forward-looking statement to reflect any change in the Company’s circumstances or the circumstances on which a statement is based, except as required by law.

The Company disclaims any responsibility for the accuracy or completeness of any forward-looking statement to the extent permitted by law. Unless otherwise stated, the projections or forecasts included in this release have not been audited, examined or otherwise reviewed by the independent auditors of the Company.

This release is not an offer or invitation for subscription or purchase of, or a recommendation of securities.

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FSA Group Ltd AGM presentation 2024