Ofx Group Ltd. · ASX:OFX
Ofx — Investor Day (March 2022)
37 slides from Ofx's investor day presentation, Mar 16, 2022
Slide 1: Investor Day
Investor Day Investor presentation • March 16, 2022
Slide 2: Agenda
Agenda 1 Performance 2 Strategy 3 Financial outlook 4 Q&A --- Break --- 5 Growing North America 6 Winning in Enterprise 7 Risk excellence 8 Q&A
Slide 3: Performance
Performance Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: Trading update: strong NOI growth continues, record EBITDA
Trading update | Strong NOI growth continues, record EBITDA Momentum through 4Q, closing a strong FY22 Double-digit growth in all regions and segments1 Turnover up EBITDA2 expected to be 30%+ $43-45m Continued quarterly NOI growth ($m) with ATV’s remaining up 41% to 48% elevated 39.0 37.3 to 39.3 35
Slide 5: Building momentum
Building momentum Turnover 1st Monthly Turnover 1st Monthly $3Bn+ Turnover 1st Monthly $2Bn+ Turnover OzForex $1Bn+ founded 15 years 5 years 3.5 years 1998 2013 2018 2021 Revenue Start Shift Today Consumer driven 40% B2B Consumer B2B 52% B2B A&NZ centric 35% Global A&NZ centric Global 50% Global Non
Slide 6: Strategy
Strategy Skander Malcolm Chief Executive Officer and Managing Director
Slide 7: Significant market opportunity
Significant market opportunity Total global cross-border payments revenue Banks and Incumbent MSBs US$206bn 72% <0.05% Global market Banks & Incumbents’ market share OFX market share Note: Market representation only using multiple data sources including McKinsey Global Payments map 2021 and OFX mark
Slide 8: OFX focuses on four target segments
OFX focuses on four target segments High Value Consumer Corporate Online Seller Enterprise Customer segments we target Typical ATVs of ~$17.2k Typical ATVs of ~$26.5k Typical ATVs of ~$15.4k B2B2C and biannual+ trading monthly+ trading fortnightly+ trading B2B2B Transfer money Manage Manage internat
Slide 9: Global competition is fragmented and evolving
Global competition is fragmented and evolving Cross-border payments top 100 global competitors map Competitive dynamics Neobanks have entered the Consumer market, but true survivors are yet to emerge Incumbent MSBs are rapidly digitising Digital MSBs who initially focused on Consumer have entered Co
Slide 10: Key industry trends support a strong specialist business model
Key industry trends support a strong specialist business model Trends Data Implications 5x • Considerable investment required in Risk & Compliance Regulatory scrutiny higher AML fines • Banks less and less likely to support providers that do not have the is strengthening ($2.2B) at Banks in 2020 vs
Slide 11: Well positioned to thrive in a post-pandemic era
Well positioned to thrive in a post-pandemic era Pre-COVID 2020/21 Post-COVID, inflationary Invested in last 3 years Pandemic impacts Improved competitive positioning for next 3 years Deeper B2B exposure SMEs poised to grow well (Corporate | Online Seller | CATALYST with GDP between 3.6% to 5.1% Ent
Slide 12: Future investment in line with strategic priorities
Future investment in line with strategic priorities Discretionary investments Strategic pillars To scale OFX successfully Customer Geographic Reliable, Risk Experience Expansion Partnerships Scalable Systems Management People Grow North America and Europe as next markets Grow Corporates and Online S
Slide 13: Building the world's leading value-added cross border payments specialist
Building the world’s leading value-added cross border payments specialist ` Huge opportunity Target segments Competitive positioning More valuable company Distinctive CVP US$206bn cross-border payments market which keeps growing Corporate ++ + Healthy revenue growth 75%+ Recurring Revenue Digital Hu
Slide 14: Financial Outlook
Financial Outlook Selena Verth Chief Financial Officer
Slide 15: Sustained profitable growth, generating cash
Sustained profitable growth, generating cash We’re a valuable And becoming more Underlying EBITDA ($m) company valuable post Firma Adjusted for Lease accounting (AASB16) acquisition B2B revenue share 52% 3 ~ 65% 7.2% CAGR 43.0 to 45.0 Recuring revenue share 78% 2 80% + 38.2 36.0 31.0 33.2 30.4 Under
Slide 16: Firma adds profitable scale
Firma adds profitable scale OFX combined will be one of the most profitable cross border payments companies (LTM EBITDA)1 Key highlights EBITDA EBITDA Margin 150.0 50.0 % 124.5 30% 30% 100.0 21% 25.0 % 14% 55.1 50.0 39.2 EBITDA Margin EBITDA (A$m) 10.9 0.9 • Strong cash flow generation 0.0 0.0 % pro
Slide 17: Corporate: consistent and valuable growth
Corporate: consistent and valuable growth Revenue $m Multi channel acquisition Diverse portfolio1 31.8 29.8 Business Lifetime Service industries 24.9 26.8 25.7 size revenue Digital Micro / Small + Wholesale trade Retail trade Alliance Micro / Small + Manufacturing BDM Small / Medium ++ Financial ser
Slide 18: Online Seller: valuable segment in growth phase
Online Seller: Valuable segment in growth phase Revenue $m Multi channel acquisition Diverse portfolio1 4.0 4.1 4.2 4.2 Business Lifetime 3.6 size revenue Retail trade Digital Micro / Small + Wholesale trade Service industries Alliance Small / Medium ++ Manufacturing Financial services BDM Small / M
Slide 19: Consumer: loyal and high value
Consumer: Loyal and high value Consumer clients Revenue $m Multi channel acquisition Revenue by use case 35.8 34.4 % Lifetime Purchase of goods 32.1 30.5 customers revenue Transfer salary 26.9 Digital 65-70% + Property investment Family support Investment and share sales Alliance 30-35% + Loan payme
Slide 20: Any questions
Jay, Cissy, Sean and Mark, OFXperts Any ? questions
Slide 21: Break
Break
Slide 22: Growing North America
Growing North America Alfred Nader President North America
Slide 23: North America is OFX's biggest market expansion opportunity
North America is OFX’s biggest market expansion opportunity Huge regional market for Ripe for disruption by emerging With significant unmet needs cross-border payments specialists like OFX from our target audience $43bn 74-81% 1 in 4 North America cross-border market share still with ’Highly engaged
Slide 24: We are seeing strong execution against our regional strategy
We are seeing strong execution against our regional strategy Our investment to grow North We have the infrastructure ready And customers who value our America faster is paying off to expand further distinctive value proposition 49 Regulatory licenses across North America The exchange rates were the
Slide 25: Fireside chat with Skander Malcolm and Alfred Nader
Fireside chat with Skander Malcolm and Alfred Nader 25
Slide 26: Winning in Enterprise
Winning in Enterprise Yung Ngo President APAC
Slide 27: Highly valuable segment with traditional providers retreating
Highly valuable segment with traditional providers retreating Enterprise definition Four verticals Equity OFX Enterprise target: 1 2 Banks & FIs Management Target Companies who need to offer cross border payments Verticals to their customers (end-users), and where OFX aims to acquire and service the
Slide 28: How we win in Enterprise
How we win in Enterprise Client needs OFX solution Execution Approved segment focus and prospect • Provide my customers with FX • API led integration meetings Qualify AC Q U I R E Help my • CX both in or out of partner Solutions-led • Improve my CX processes customers environment approach Presales t
Slide 29: OFX partnership: a case study
| OFX partnership: a case study Client requirements Activation Simplify customer experience and Solution launched Oct 21 improve productivity CargoWise is WiseTech's industry-leading flagship technology that is a deeply integrated, global software platform for logistics service providers + Reduce cu
Slide 30: Video link
www.youtube.com/watch?v=sr4eP5NwNrY 30
Slide 31: Risk Excellence
Risk Excellence Mark Shaw Chief Operating Officer
Slide 32: The risk landscape has changed
The risk landscape has changed 2015 Now 5x AML Focus on having Focus on how well you understand and manage Consequences policy & process in place Higher AML fines ($2.2B) at specific risks, quality of reporting Banks in 2020 vs 2019 360+ Regulatory focus Increasing prudential regulation on client on
Slide 33: Payment companies face increased regulation globally
Payment companies face increased regulation globally Regulatory changes mapped across OFX’s key markets Legend Representative only – not a complete US list of relevant regulatory changes EU/IR Regulatory change funnel Anti-Money Laundering Act 2020 Common Reporting Standards CA Stage 1 > Watchlist U
Slide 34: A mature and integrated Risk Management program
A mature and integrated Risk Management program Partners Clients Tier 1 Banks Defined client segments Enterprise partners Channels Risk Geographies Management Local license & regulatory obligations Human service Digital protection Culture Payments to high-risk countries Strong local and global gover
Slide 35: Any questions
Any ? questions Silvana and Harry, OFXperts
Slide 36: Trade Tracker
TRADE TRACKER NHL TRADE DEADLINE: MARCH 21 AT 3 PM ET
Slide 37: 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 16 March 2022. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prep