Slide 1: FY24 Financial Results & Outlook
FY24 Financial Results & Outlook 21 May 2024 OFX Group Limited ACN 165 602 273
Slide 2: Agenda
Agenda 1. Performance update 2. Financials 3. Strategy & FY25 Outlook 4. Q&A 5. Appendix 5 2
Slide 3: Performance update
Performance update Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: FY24: results in line with guidance, strong execution
FY24: results in line with guidance, strong execution $227.5m $20.8m $64.6m $68.2m NOI1 B2B new revenue Underlying EBITDA2 Net available cash up 6.3% up 21.8% up 3.4% up 1.2% (up 8.2% ex-Paytron) Margin growth and Continued cash Marketing pivot to B2B Disciplined cost strong interest income, generat
Slide 5: Delivered on global growth: revenue from outside Australia up from 50% to 65%
Delivered on global growth: revenue generated from outside Australia1 up from 50% to 65% in 3 years Revenue $m APAC1 North America2 EMEA 89.9 90.2 89.3 87.7 83.7 74.2 36.7 31.7 43.1 24.9 33.7 19.8 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY24 up 0.3% v FY23 FY24 down (1.9)% v FY23
Slide 6: Pivot to B2B delivered: revenue contribution up from 55% to 68%
Pivot to B2B delivered: revenue contribution1 up from 55% to 68% in 3 years Revenue 3-year CAGR Healthy FY24 drivers B2B revenue up +4.8% Corporate Expanding margins3 31.7% +3 bps +27.6% 146.1 139.4 OLS2 Transactions growing 70.4 80.4 (7.0)% +5.2% 125.3 131.2 57.4 65.8 Enterprise2 Recurring revenue
Slide 7: Corporate segment is healthy and growing
Corporate segment is healthy and growing Corporate revenue +4.8%, business conditions vary Strong portfolio fundamentals by sub region FY24 revenue growth Revenue growth impacted by reduced Corporate new revenue, $m 18.5 +1.1% ATVs, down 4.0%, amid low volatility and strong USD 14.7 9.0 10.1 ● Corpo
Slide 8: Enterprise segment returning to strong growth
Enterprise segment returning to strong growth Enterprise revenue up Sample clients +32.8% 8.1 +21.2% 6.0 6.1 4.6 Enterprise 3 77 FY21 FY22 FY23 FY24 Deals signed in pipeline1 North America prospects Revenue $m, 3-year CAGR in FY24 up 10, to 1 Enterprise pipeline as at 31 March 2024 8
Slide 9: Extended low volatility impacting Consumer revenue growth
Extended low volatility impacting Consumer revenue growth Maintaining revenue growth over the medium term, Top 3 use cases declined v 1H24 despite focus on B2B Revenue by use case Revenue $m, 3-year CAGR Purchase - Goods -5.9% & Services Wealth related 1 -7.6% +6.1% transfers 71.4 71.6 68.4 Property
Slide 10: Financials
Financials Selena Verth Chief Financial Officer
Slide 11: Solid result with growth in EBITDA and margins
Solid result with growth in EBITDA and margins Financial results FY23 FY24 V% Financial metrics ($m) ● Fee and trading income up 2.1%, with strong growth in EMEA, up 15.6% Fee and trading income (Revenue) 225.0 229.7 2.1% ● NOI up 6.3%, driven by interest income of $8.7m and Net operating income 214
Slide 12: Margin growth through investment and execution
Margin growth through investment and execution NOI Margin NOI Margin walk 0.02% 0.59% 0.75 0.71% 0.01% 0.02% 0.70 0.54% 0.65 0.59% 0.60 0.55 0.50 0.45 0.40 0.35 0.30 FY21 FY22 FY23 FY24 FY23 Pricing Interest North FY24 Income America1 NOI margin NOI margin (ex same currency) 1 North America NOI marg
Slide 13: Disciplined expense management, core expense growth 5.1%
Disciplined expense management, core expense growth 5.1% Underlying operating expenses ($m) FY23 FY24 V% Employee expenses 105.0 112.5 7.1% ● Group wide productivity programs delivering FTE synergies of ~20 FTE and a reduced employee Promotional expenses 16.8 18.4 9.7% expense run rate in 2H24 Infor
Slide 14: Firma integration delivered 30% EPS accretion in <2 years
Firma integration delivered 30% EPS accretion in <2 years Transaction completed May 2022 Integration completed March 2024 Delivered scale in North America $98m acquisition of North American B2B Corporate Active Clients up 34% v FY22 and FTE from 103 to FX provider. Funded with $100m debt facility
Slide 15: Intangible investment delivered scalability and security, now shifting to product activation
Intangible investment delivered scalability and security, now shifting to product activation Intangible investments1 $m 19.4 18.7 ~18.0 Product 20% Firma 40% Risk, Data, Security 2x Increase in Product Client Experience investment since FY23 to generate revenue streams beyond FX Payments FY23 FY24 F
Slide 16: Healthy cash generation and a strong balance sheet
Healthy cash generation and a strong balance sheet Balance Sheet ($m) 31 Mar 23 31 Mar 24 Cash held for own use 68.2 68.1 ● Net cash held $88.0m, net available cash $68.2m Cash held for settlement of client liabilities 368.7 287.3 ● $64.6m underlying EBITDA delivering $60.6m net cash flow Deposits d
Slide 17: Cash provides flexible capital allocation for growth
Cash provides flexible capital allocation for growth Principles FY24 FY25E ● Drive sustainable growth Debt and On track to repay by end of FY26 $24.0m repayment balance sheet $44.0m loan balance Further leverage available for ● Provide return to leverage future use shareholders in most efficient f
Slide 18: Strategy & FY25 Outlook
Strategy & FY25 Outlook Skander Malcolm Chief Executive Officer and Managing Director
Slide 19: OFX 2.0: Grow B2B faster, with more products delivering expanded returns
OFX 2.0: Grow B2B faster, with more products delivering expanded returns Scale Target Offer the right Deliver an Grow origination Corporate and products and extraordinary revenue in developed Enterprise, services digital platform beyond markets service High to target ICP1 with a human FX faster Valu
Slide 20: Target B2B clients need more than just low-cost payments
Target B2B clients need more than just low-cost payments For payments, target ICPs1 However, workflow and tasks around … OFX can now solve these are looking for: payments incur more pain and cost than the pain points and reduce more payment itself … cost … Competitive pricing + Ease of use (digital
Slide 21: Our new Corporate platform live in Australia in 1Q25
Our new Corporate platform live in Australia in 1Q25 Expanded product set FX focus with global wallets Global expense management Multi currency Corporate card Accounting AR/AP Global software payment and integrations workflow solutions 21
Slide 22: The OFX 2.0 revenue opportunity beyond FX is significant
The OFX 2.0 revenue opportunity beyond FX is significant An OFX client that moved to Paytron … FX competitors have evolved to generate ~50% of revenue now using expanded product offering… from non-FX Indicative revenue percentage by product Other fees 2 Interest Other fees 25% 23% Interest 43% Addit
Slide 23: Outlook
Outlook Medium term Long term (1-3 years) (3+ years) 10%+ 15%+ NOI annual growth NOI annual growth 28-30% ~30% Underlying EBITDA margin Underlying EBITDA margin 23
Slide 24: FY25 Assumptions
FY25 Assumptions FY25 NOI growth rate drivers FY25 Key Drivers ● FY24 Corporate new revenue driving FY25 revenue 11.9% growth ●+ Margins ~10% ● FY24 pricing actions driving improved margins in FY25 ●+ New revenue ● Canadian Corporate ATVs build as Corporate confidence returns ●+ Non-FX revenue ● Con
Slide 25: Q&A
Q&A 25
Slide 26: Appendix
Appendix
Slide 27: FX Volatility
FX Volatility 14 day moving average of daily % movement in spot price (AUD/USD) 1 0.5 FY24 FY23 0.4 0.3 0.2 0.1 0.0 -0.1 -0.2 -0.3 -0.4 -0.5 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY20 FY21 FY22 FY23 FY24 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 Days of Volatility2 56 113 76 158 90 69 44 25
Slide 28: Loyal clients increasing transaction activity
Loyal clients increasing transaction activity OFX Active clients Transactions per Transactions ATV Turnover Group1 140.7k active client 1,355k $28.4k $38.4bn 3.8% down from FY23 9.6 1.2% up on FY23 4.4% down on FY23 3.2% down on FY23 5.2% up from FY23 Transactions per Active clients Transactions ATV
Slide 29: Consistent Recurring Revenue despite growth in New Revenue
Consistent Recurring Revenue despite growth in New Revenue Revenue from Existing Clients 40 83% 35 30 decrease from 84% in FY23 25 20 77% 15 High Value New clients within the last 12 months Existing clients Consumer 10 Revenue $m 5 0 1H24 2H24 1H22 2H22 1H23 2H23 1H20 2H20 1H21 2H21 70 5 60 4 86% 82
Slide 30: Continued NOI and EBITDA growth
Continued NOI and EBITDA growth Turnover ($bn)1,2 Net Operating Income ($m)3 Underlying EBITDA ($m)3 227.5 214.1 62.4 64.6 39.7 38.4 33.2 147.0 44.5 25.0 117.9 27.7 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY24 down (3.2)% v FY23 FY24 up 6.3% v FY23 FY24 up 3.4% v FY23 $38.4bn $22
Slide 31: Definitions
Definitions • Active Client: Number of clients that entered into a Transaction with OFX during the immediately preceding 12-month period • ATV: Average transaction value • B2B: Corporate, Online Sellers (OLS) and Enterprise segments • Corporate: As of 1H21, Corporate excludes OLS; OLS is reported se
Slide 32: Restatements
Restatements FY23 and 1H24 restatements are a result of adjustments made to Firma data upon automation, migration and alignment to OFX systems FY23 Restatements Turnover ($bn) Transactions (#k) ATV ($k) Original Restated V Original Restated V Original Restated V Total 39.1 39.7 0.6 1,341.8 1,339.0 (
Slide 33: Thank you
Thank you The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 21 May 2024. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepar