Slide 1: FY20 Financial Results Investor Presentation
© orx FY20 Financial Results Investor presentation 19 May 2020
Slide 2: Agenda
Agenda FY20 Summary FY20 Financial Results FY21 Outlook Q&A Appendix \ ha Ld {
Slide 3: FY20 Summary
© orx FY20 Summary Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: FY20 highlights
• Revenue2 up 6.6%, 2H up 12.9% • Consumer revenue up 5.8%, existing clients up 11.4% 2H vs 1H • Transactions up 6.2% and transactions per active client3 up 8.8% • Cost per registration (CPR) down 11.3%, cost per new dealing client (CPNDC) down 7.4% • Stable NOI margin4 ex IPS at 56bps • Underlying
Slide 5: Market volatility and COVID-19 impact
• VIX at a 10 year high on 16th March at 82.69 (10 Yr. Avg: 17.13) • Period of high volatility (34 days in 4Q20 vs 10 days in 4Q19)2 • AUD at an 18 year low vs USD0.56 (19th March) Days of Volatility 39 25 36 Transactions (# 000’s) 493.5 527.8 565.5 Transactions per Client 6.4 7.0 7.3 Net Operating
Slide 6: Client activity since March 2020
• Revenue from reactivated clients2 up 132% • Higher initial value from new clients with first month revenue up 52% • Revenue from existing clients3 up 38% • Providing a stream of recurring flows with transactions per client up 17% • Consumer: up 126% on USD:AUD revenue, down 36% on AUD:USD revenue
Slide 7: Consumer and corporate KPIs by half
160 7.0 600 25.0 14 140 6.0 500 12 120 20.0 5.0 10 100 400 4.0 15.0 8 80 300 3.0 6 60 10.0 200 2.0 4 40 100 5.0 20 1.0 2 - 0.0 0 - - 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 LTM = Last twelve months ATV = Average transaction value 7
Slide 8: New and existing client revenue
40 35 30 25 20 15 10 5 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 35 30 25 20 15 Stable at 76% Down 2.4% from FY19 10 5 0 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 New clients 1. Existing clients (previously defined as Returning clients) are active clients who fi
Slide 9: Regional turnover and transactions
1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 1H19 2H19 1H20 2H20 • Turnover and transactions represent growth from FY19 to FY20 9
Slide 10: FY20 Financial Results
© orx FY20 Financial Results Selena Verth Chief Financial Officer
Slide 11: FY20 financial summary
• Fee and trading income up 6.6%, supported by scaled pricing tests and Fee and trading income ($m) 128.7 137.2 6.6% improved treasury management Net operating income ($m) 118.7 125.2 5.4% Underlying operating expenses1 ($m) 82.8 86.9 5.0% • NOI up 5.4%, Transactions up 6.2% (Consumer up 0.4%, Corpo
Slide 12: Operating expenses
Employee expense 50.3 53.4 6.2% • Employee expenses up 6.2%, with revenue generating FTEs up 8.0% Promotional expense 17.6 13.6 (22.4%) • Increased efficiency of promotional expense, down 22.4%, cost per registration Technology expenses 5.1 6.3 22.2% down 11.3%, cost per new dealing client down 7.4%
Slide 13: FY20 operational improvements
• Corporate onboarding • New online forms, onboarding time down 14% in US, 33% in UK • Partnership with Link Australia • Link Australia onboarding registrations live • Global Currency Account • Online Sellers 52% increase in straight through processing • Pricing • Pricing campaigns running at scale,
Slide 14: Balance sheet and cash flow
• Net cash held $61.0m, up $2.5m, net available cash $24.5m Cash held for own use 26.1 28.8 • Strong credit processes, daily forward margin calls Deposits due from financial institutions 32.5 32.3 • Net derivative position stable as $2.4m Cash held for settlement of client liabilities 155.2 207.0 •
Slide 15: FY21 Outlook
© orx FY21 Outlook Skander Malcolm Chief Executive Officer and Managing Director
Slide 16: Online Sellers and enterprise partnerships
• $3.3 T1 turnover in cross border ecommerce, expected to grow • New enterprise partnerships can create a step change in revenue strongly with accretive EBITDA margins, FY20 Enterprise underlying • OFX well established growing to $1.6bn turnover in FY20 through our EBITDA margin 49% v OFX 28% Global
Slide 17: FY21 priorities
• Substantially improve Corporate client onboarding • Continue investment in North America • Scale Link Australia partnership • Scale Corporate CRM • Accelerate Corporate growth in UK & A&NZ • Scale API solutions in line with partner opportunities • Expand Online Sellers banking and enhance • Comple
Slide 18: FY21 outlook
• GDP expected to shrink worldwide • Continue to manage our expenses • Continued focus on North America • April revenue subdued, new revenue while maintaining flexibility to grow and Corporate growth globally growth encouraging in Corporate • Disciplined investment where there is • Scale Link Austra
Slide 19: ?
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Slide 20: Appendix
© orx Appendix
Slide 21: AUD/USD corridor volatility
0.000% 0.100% 0.200% 0.300% 0.400% 0.500% -1.000% -0.900% -0.800% -0.700% -0.600% -0.500% -0.400% -0.300% -0.200% -0.100% 1-Apr 6-Apr 15bps 11-Apr (15bps) 16-Apr 21-Apr 26-Apr 1-May 6-May 11-May 16-May 21-May 26-May 31-May 1. AUD/USD is a major trading corridor within the portfolio 5-Jun 10-Jun 15-J
Slide 22: Important notice
The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 19 May 2020. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared without