Slide 1: Financial Year 2017 Results
Financial Year 2017 Results Investor presentation 23 May 2017
Slide 2: Agenda
Agenda FY17 summary Financial update Focus on execution Summary and outlook Q&A 22
Slide 3: FY17 summary
FY17 summary Skander Malcolm Chief Executive Officer and Managing Director 33
Slide 4: FY17 summary
FY17 summary Fundamentals good Delivered Operational highlights $27.8m underlying EBTDA, Fee and trading income 2.5% on guidance Rebranded Australia, UK, and US to OFX $114.1m Transactions 852k 8.7% Delivered Migration to Amazon Web Services (AWS) completed Active clients 157k 3.7% $19.6m underlying
Slide 5: Financial update
Financial update Doug Snedden Non-Executive Director 55
Slide 6: Financial results in line with guidance
Financial results in line with guidance Underlying results FY15 FY16 FY17 Key takeaways Financial Metrics Net operating income (NOI) increased Turnover ($b) 16.6 19.6 19.4 Higher expenses reflect investment in brand and Net operating income ($m) 90.1 103.9 105.1 technology Expenses ($m) (53.5) (
Slide 7: Selective investments in growth capabilities leading to positive jaws going forward
Selective investments in growth capabilities leading to positive jaws going forward Underlying operating expenses1 $m FY15 FY16 FY17 Investment in tech employees to drive technology Employee expense (28.3) (36.1) (42.8) upgrade Promotional expense (13.9) (15.2) (16.3) Above the line marketing sp
Slide 8: Strong cash generation
Strong cash generation 27.8 1.0 1.2 3.5 5.4 2.2 16.8 $m 14.3 4.6 2.0 EBTDA Movement in Movement in Tax payments Capital FX revaluation Net cash Dividends paid Cash revaluation Net cash increase reserves Balance Sheet expenditure generation items 8
Slide 9: Balance Sheet
Balance Sheet $m H2FY16 H1FY17 H2FY17 Assets Net cash $42.6m up from $38.1m as at 31 March Net cash1 38.1 41.5 42.6 2016 Cash and cash equivalents 142.1 129.4 148.5 Deposits with financial institutions 20.8 26.6 10.1 Client liabilities (124.8) (114.5) (115.9) The Group requires net cash to enabl
Slide 10: Focus on execution
Focus on execution Skander Malcolm Chief Executive Officer and Managing Director 10 10
Slide 11: Gains in revenue drivers and operating metrics in challenging macro environment
Gains in revenue drivers and operating metrics in challenging macro environment Growth in engagement Growth in repeat Sustained growth in However, ATV impacted … resulting in flat business of clients >3 transactions from by global market events turnover on FY16 years registered Corporate and Individ
Slide 12: Strong transactional growth from Corporate portfolio
Strong transactional growth from Corporate portfolio Corporate active client transactions 7.3% CAGR of transactions since H1FY15 200 Higher ATVs: Corporate clients >3 years old had an 180 160 ATV 2.3x greater than Individuals in FY17 140 120 $000 100 80 <1 years Highly retained Corporate client
Slide 13: Repeat active clients provide steady, higher margin revenue flow
Repeat active clients provide steady, higher margin revenue flow Corporate active client revenue 12.7% CAGR of > 3 year clients since H1FY15 25 Clients >3 years old = 47% of Corporate revenue (up 20 from 42% in FY16) 15 <1 years $m 10 <2 years Higher transactions per client and ATVs 5 <3 years >
Slide 14: Our marketing is gaining traction, and sales is our next focus area
Our marketing is gaining traction, and sales is our next focus area UKForex v OFX - Migration Rank Transition The OFX brand is now live in our 3 core markets 0 Successful completion of rebranding in the US and UK Avg. Blended Rank 25 Applying learnings from Australia to restore search rankings w
Slide 15: North America is growing faster than ANZ at the same stage
North America is growing faster than ANZ at the same stage Regional fee and trading income North America became the second largest fee and 7 trading income contributor in Q2, ahead of Europe 6 NDCs in North America grew by 7% in H2FY17 vs 5 H1FY17 4 $m Europe will rebound with a stronger GBP a
Slide 16: Strong marketing investment in US underway
Strong marketing investment in US underway Street Pillar Kiosk Embarcadero Station Billboard 16
Slide 17: Ongoing investment in client experience is key to success
Ongoing investment in client experience is key to success Very strong NPS overall Opportunity to improve Globally OFX’s satisfaction The customer journey has been mapped out and pain points score is in the excellent range identified, particularly during the early on boarding stages FY18 program of w
Slide 18: Our technology roadmap for FY18 has been prioritised
Our technology roadmap for FY18 has been prioritised Technology architecture vision Rigorous FY18 prioritisation plan Continued investment in modernising our infrastructure To ensure execution we have selected a number of items Progressing well on migrating to a modern architecture to be delivered,
Slide 19: Summary and outlook
Summary and outlook Gaining traction on • Active clients Marketing and Sales • Transaction volume “Driving positive jaws Unlocking customer • Conversion rates through better execution, experience value • NPS discipline and growth” Sustaining • Completion of priority roadmap investment • Better cost,
Slide 20: Q&A
Q&A 20
Slide 21: Level 19, 60 Margaret Street, Sydney NSW 2000 Australia. www.ofx.com
The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 23 May 2017. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared without