Slide 1: 1H22 Financial Results
1H22 Financial Results Investor presentation 09 November 2021
Slide 2: Agenda
Agenda Excellent result with good 1 momentum 2 Strong financials 3 FY22 outlook 4 Q&A 5 Appendix
Slide 3: Excellent result with good momentum
Excellent result with good momentum Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: 1H22: NOI up 27.3%, with good momentum across all key metrics
1H22: NOI up 27.3%, with good momentum across all key metrics Turnover ($bn) Net Operating Income ($m) Underlying EBITDA ($m) 68.6 21.7 65.6 64.0 19.6 20.3 15.0 59.5 13.1 13.8 53.9 16.5 11.5 11.2 10.8 1H20 2H20 1 1H21 2H21 1H22 1H20 2H20 1 1H21 2H21 1H22 1H20 2H20 1 1H21 2H21 1H22 1H22 up 34.0% v 1H
Slide 5: Strong portfolio with revenue growth across all segments
Strong portfolio with revenue1 growth across all segments Corporate Online Seller Enterprise High Value Consumer 31.8 35.8 29.8 34.4 32.1 30.5 26.8 25.7 4.1 4.2 4.2 24.9 4.0 26.9 3.6 2.8 2.3 2.3 2.2 2.0 1H20 2H20 1H21 2H21 1H22 1H20 2H20 1H21 2H21 1H22 1H20 2H20 1H21 2H21 1H22 1H20 2H20 1H21 2H21 1H
Slide 6: Loyal and active Corporate clients driving Recurring Revenue of 86%
Loyal and active Corporate clients driving Recurring Revenue of 86% Corporate Loyal client base building a valuable segment Revenue $m Turnover 31.8 29.8 26.8 25.7 24.9 1H20 2H20 1H21 2H21 1H22 Offshore share purchases Pre FY14 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Typical ATVs of ~$26.5k mon
Slide 7: Investing in Online Seller to unlock substantial opportunity
Investing in Online Seller to unlock substantial opportunity Online Seller Market growth flatlined as the eCommerce boom pulls back1 Revenue $m 120% 100% QoQ variation PCP by market Digital Commerce growth 4.1 4.2 4.2 80% 4.0 3.6 60% A&NZ 40% UK 20% USA 0% -20% 1Q21 1Q22 -40% 1H20 2H20 1H21 2H21 1H2
Slide 8: Building a valuable Enterprise segment
Building a valuable Enterprise segment Enterprise Pipeline1 strengthening globally, up 20% on 2H21 Revenue $m Prospect meetings 2.8 2.3 2.3 2.2 Qualify (35 prospects) 2.0 Develop (9 prospects) 1H20 2H20 1H21 2H21 1H22 Negotiate (4 prospects) Revenue up 40.5% Activate Existing Clients growing + activ
Slide 9: Winning the Consumer rebound
Winning the Consumer rebound High Value Consumer Loyal client base use OFX when it matters most Revenue $m Turnover COVID Pandemic Brexit 35.8 vote 34.4 32.1 30.5 26.9 Global financial crisis 1H20 2H20 1H21 2H21 1H22 Typical ATVs of ~$17.2k biannual+ trading Revenue up 28.1% with double-digit growth
Slide 10: Strong volumes from high quality and growing client base
Strong volumes from high quality and growing client base Active client growth With strong Led to increased At higher Resulting in in 1H22 … trading activity … transaction volumes ex ATVs … record turnover offshore share purchases … Active clients Transactions per Transactions ATV Turnover 141.1k act
Slide 11: Double-digit revenue growth across all regions
Double-digit revenue growth across all regions Revenue, turnover and transactions represent 1H22 v 1H21 North America Asia Revenue +32.9% Revenue +20.1% Turnover +40.2% Turnover +64.2% Transactions +25.9% Transactions +16.9% UK / Europe A&NZ Revenue +26.2% Revenue1 +10.5% Turnover +31.4% Turnover +2
Slide 12: Strong financials
Strong financials Selena Verth Chief Financial Officer
Slide 13: Strong financial result driven by growth across the portfolio
Strong financial result driven by growth across the portfolio Financial Results ($m) 1H20 1H21 2H21 1H22 V 1H21 Financial Metrics Fee and trading income (revenue) 65.3 61.6 72.7 74.0 20.1% • Revenue up 20.1% with double-digit growth across all regions Net operating income 59.5 53.9 64.0 68.6 27.3% •
Slide 14: Targeted investments driving good outcomes
Targeted investments driving good outcomes Expenses ($m) 1H20 1H21 2H21 1H22 V 1H21 Underlying operating expenses Employee expense 26.8 27.9 29.1 31.6 13.3% • Employee up 13.3%. Variable compensation up $2.7m driven by strong 1H22 performance Promotional expense 7.1 6.9 5.9 7.9 15.1% Technology expe
Slide 15: Strong balance sheet, good cash flow
Strong balance sheet, good cash flow Balance Sheet ($m) 30 Sep 20 31 Mar 21 30 Sep 21 • Net cash held $63.1m, up $2.6m from 31 March 21, Net Available Cash $37.6m Cash held for own use 25.7 33.5 40.9 • Strong cash generation: $20.3m underlying EBITDA delivering $19.6m net cash flows Cash held for se
Slide 16: Sustainable capital investment in our global operating model
Sustainable capital investment in our global operating model Intangible investments $m 12.6 Payments 10.3 excellence 9.3 7.8 Single global platform Risk Customer management service World class team FY19 FY20 FY21 FY22E Actual Investment Forecast Investment 1H22 Delivery 2H22+ Delivery ✓ Faster, chea
Slide 17: FY22 outlook
FY22 outlook Skander Malcolm Chief Executive Officer and Managing Director
Slide 18: Building the world's leading value-added cross border payments specialist
Building the world’s leading value-added cross border payments specialist ` Opportunity Grow valuable segments Competitive positioning More valuable company Distinctive CVP 130T USD cross-border payments ✓ Healthy revenue growth market Corporate ++ + ✓ 75%+ Recurring Revenue Digital Human ✓ Strong E
Slide 19: Priorities for our target segments
Priorities for our target segments Corporate Online Seller Enterprise High Value Consumer Typical ATVs of ~$26.5k Typical ATVs of ~$15.4k B2B2C and Typical ATVs of ~$17.2k monthly+ trading fortnightly+ trading B2B2B biannual+ trading Improve client Building a trusted Activate wins, convert Win post-
Slide 20: OFX will thrive in a post-pandemic world
OFX will thrive in a post-pandemic world Pre-COVID 2020/21 Post-COVID Invested in last 3 years Pandemic impacts Improved competitive positioning for next 3 years CATALYST Deeper B2B exposure SMEs poised to grow well with GDP (Corporate | Online Seller | eCommerce B2B between 3.6% to 5.1% in our key
Slide 21: FY22 outlook
FY22 outlook Focus on strategic priorities Deliver strong results • Continue to grow North America • Maintain principle of positive operating • Strong growth in Corporate and Online Seller leverage1 while remaining flexible to pursue segments investment opportunities • Win opportunities in the Enter
Slide 22: Official Currency Exchange
Official Currency Exchange Provider of the NHL® NHL AND THE NHL SHIELD ARE REGISTERED TRADEMARKS OF THE NATIONAL HOCKEY LEAGUE. © NHL 2021. ALL RIGHTS RESERVED.
Slide 23: Appendix
© OFX Appendix
Slide 24: Continued quarterly growth with lower volatility
Continued quarterly growth with lower volatility Continued quarterly NOI growth 14 day moving average of daily % movement in spot price (AUD/USD) 1H22 v 1H21 +27.3% 1H22 v 2H21 +7.2% Apr May Jun Jul Aug Sep 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Growth Rates 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
Slide 25: Attractive Recurring Revenue
Attractive Recurring Revenue Revenue from Existing Clients 78% Decrease from 79% in 1H21 High Value Consumer Revenue 35 Corporate Revenue $m 5 Online Seller Revenue $m $m 30 4 40 25 35 20 3 30 25 15 2 20 15 10 10 1 5 5 0 0 0 2H20 2H20 2H21 1H17 2H17 1H18 2H18 1H19 2H19 1H20 1H21 2H21 1H22 1H17 2H17
Slide 26: Definitions
Definitions • Active Client: Number of clients that entered into a Transaction with OFX during the • New Revenue: Revenue from clients that register within the current financial year immediately preceding 12 month period • NOI margin: Net Operating Income / Turnover • ATV: Average transaction value
Slide 27: 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 09 November 2021. Material is provided in summary only and does not purport to be complete. The material contained in this document has been p