Ofx Group Ltd. · ASX:OFX
Ofx — Investor Presentation (March 2023)
35 slides from Ofx's investor presentation, Mar 23, 2023
Slide 1: Investor Day
Investor Day 23 March 2023 OFX Group Limited ACN 165 602 273
Slide 2: Agenda
Agenda 1 Performance update Skander Malcolm Chief Executive Officer and Managing Director 2 OFX Strategy Skander Malcolm Chief Executive Officer and Managing Director 3 A valuable company Selena Verth Chief Financial Officer 4 Strong client engagement Elaine Herlihy Chief Marketing and Product Offic
Slide 3: Performance update
Performance update Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: 2H23 economic uncertainty slows demand in High Value Consumer; Corporates remain active
2H23 economic uncertainty slows demand in High Value Consumer; Corporates remain active 10.1% 10.1% 7.3% 7.4% 6.9% 5.9% 8.2% 6.4% Inflation continues to be high but trending lower Sep-22 vs Jan-23 4.5% 4.8% 3.6% 3.3% 3.3% 4.0% 2.4% 2.3% Interest rate increases are settling Sep-22 vs Mar-231 % change
Slide 5: 2H23 Trading update
2H23 Trading update NOI ($m) 105.3 ~109 FY23 within EBITDA guidance despite 2H23 78.4 economic uncertainty, slowing demand in 64.0 68.6 High Value Consumer; Corporates remain active 53.9 NOI (including Firma) Underlying EBITDA 1H21 2H21 1H22 2H22 1H23 2H23E2 ~$214m ~$62m 2H23 NOI up ~39%2 vs 2H22 an
Slide 6: OFX Strategy
OFX Strategy Skander Malcolm Chief Executive Officer and Managing Director
Slide 7: Building the world’s leading cross-border payments specialist
Building the world’s leading cross-border payments specialist Huge opportunity Target segments Competitive positioning More valuable company Distinctive CVP Healthy revenue growth US$206bn1 cross-border payments market which keeps growing Corporate ++ + High recurring revenue Digital Human 72% marke
Slide 8: The pivot to B2B and global is creating more value
The pivot to B2B and global is creating more value Portfolio mix creating a more valuable company … … and driving growth in B2B revenue Revenue in % Revenue in $m FY18 FY23E2 CAGR Strategic shift to B2B1 … 46% 66% ~210 +13% ~72 +3% … with higher 114 recurring revenue … 71% 84% 62 ~138 +22% 52 … grow
Slide 9: OFX is positioned to benefit from key industry trends
OFX is positioned to benefit from key industry trends Trends in cross-border payments OFX competitive positioning • Strong infrastructure network comprised of 13 Tier 1 banks 1 Deeper focus on risk management • ~$3m annual investment in risk management technology and 90+ specialist FTE 2 Shift to pr
Slide 10: OFX is a profitable cross-border payments specialist
OFX is a profitable cross-border payments specialist Profitability overview (EBITDA %) Why it matters 31% 21% ✓ Proven business model 15% 13% ✓ Well positioned for consolidation 5% ✓ Ability to navigate economic cycle ✓ Attract talent -8% ✓ Provides cash to continue OFX Moneycorp Wise Equals Payonee
Slide 11: The roadmap to building a more valuable company
The roadmap to building a more valuable company 1 Grow B2B1 … 3 … drive scalability … 4 … Organic + inorganic … A Organic growth FY23E2 FY24+ 66% ++% Payments excellence B Inorganic growth Single global platform Customer Risk 2 … expanding in EMEA and North America … service management 5 … generatin
Slide 12: A valuable company
A valuable company Selena Verth Chief Financial Officer
Slide 13: Consistent performance through the cycle
Consistent performance through the cycle ~214 Brexit COVID-19 vote 147.0 ~39 • 10 years of growth in turnover through economic cycles 125.2 33.2 118.7 117.9 109.9 103.9 105.1 • B2B1 turnover grew 279% across a 10-year 24.6 25.0 90.1 23.7 period (FY14-23) with CAGR of 14.3% 21.2 72.6 19.6 19.4 16.6 •
Slide 14: Continued diversification adds value to the portfolio
Continued diversification adds value to the portfolio North America & EMEA contribution up from 37.6% to Diversification of currency corridors with better netting 57.5% in last 5 years, whilst APAC grew opportunities2 Currency corridor, % of turnover FY18 FY23E1 Regional mix, % of revenue AUD/USD 20
Slide 15: Investment in our single global platform
Investment in our single global platform … Payments Intangible investments $m excellence ~18 … delivers scale, 10.5 risk management Single global platform 9.0 Customer Risk & service excellence service management FY21 FY22 FY23E1 World class team Actual Investment Forecast Investment FY23 Delivery F
Slide 16: We generate cash which allows for optionality on growth
We generate cash which allows for optionality on growth Our cash conversion to date in 2H23 We have a strong balance sheet $m 3.4 17.3 11.0 92.9 7.9 88.0 • Net available cash at 28-Feb-23 of $60.0m, up $17m from 1H23 43.9 • $100m debt facility for Firma acquisition has been paid 60.0 down to $70.5m
Slide 17: Our strategy is to deliver both organic & inorganic growth
Our strategy is to deliver both organic & inorganic growth Value of organic and inorganic growth How we invest to grow Revenue in $m Organic Inorganic CAGR 13.0% ~210 A Competitive differentiation ++ ++ ~55 B Speed to scale + ++ 114 ~41 C Accessible ++ + Well positioned for integration • One global
Slide 18: Strong client engagement
Strong client engagement Elaine Herlihy Chief Marketing and Product Officer
Slide 19: There is a huge opportunity
There is a huge opportunity OFX has considerable room to grow1 Corporates ready to switch from Banks & Incumbents 52% of Corporates have made a foreign exchange transfer at some point Banks and 40% of Corporates trade internationally Incumbent (import or export) MSBs 33% of Corporates have not engag
Slide 20: OFX has a distinctive customer value proposition
OFX has a distinctive customer value proposition + Digital Digital + Human Human • Transact digitally 24/7 • Transact digitally/phone 24/7 • Transact over phone 24/5 CVP • Self-serve support • Speak with FX experts • Speak with FX experts • Price sensitive • Price for service • Value based pricing T
Slide 21: Our product is a strong fit for small and mid-sized Corporates
Our product is a strong fit for small and mid-sized Corporates Support Move money Help me manage risk Easy to use Pricing receivables Global Currency Approval Mass Corporate Price Fast Forward Limit order Account workflow1 payment2 cards (Low to High) ✓ ✓ ✓ ✓ ✓ ✓ Medium Competitor 1 (B2C/B2B cross-b
Slide 22: Strong Corporate value proposition drives higher engagement
Strong Corporate value proposition drives higher engagement Growing transactions Higher client value Higher transfer value and Corporate through the cycle than competition higher frequency net promoter score5 # transactions1 Annual Corporate revenue YTD4 Corporate distribution of revenue per active
Slide 23: Q&A
Orx Q&A
Slide 24: Break
Orx Break
Slide 25: Client panel
Client panel Michael Judge Head of Australia & NZ
Slide 26: Working with OFX – a client perspective
Working with OFX – a client perspective Teed Up Golf Tours Enviro Technologies Bede Hendren, Managing Director Tania Sayers, COO Time with OFX: since 2006 Time with OFX: since 2018 Since 1999, Teed Up has taken thousands Australian-based private investment of golf lovers to over 40 other golf compan
Slide 27: Digital + Human panel
Digital + Human panel Kate Svoboda Chief People & Culture Officer Adam Thomas Chief Technology Officer Mark Shaw Chief Operating Officer
Slide 28: We have a strong global platform, people, risk & technology
We have a strong global platform, people, risk & technology Payments excellence Single global platform Customer Risk service management World class team Kate Svoboda Adam Thomas Mark Shaw Chief People & Culture Officer Chief Technology Officer Chief Operating Officer Joined OFX in 2021 Joined OFX in
Slide 29: Good governance
Good governance Patricia Cross Chair Skander Malcolm Chief Executive Officer and Managing Director
Slide 30: Governance at OFX
Governance at OFX Patricia Cross A highly experienced Non-Executive Director and Chair. Over the past 25 years she has served on eight large, listed company boards in Australia and the UK as well as several government, not-for-profit and advisory boards. Experienced C-suite international banker havi
Slide 31: Global Executive Team
Global Executive Team Skander Malcolm Selena Verth Mark Shaw Chief Executive Officer Chief Financial Officer Chief Operating Officer and Managing Director 20+ years of experience 16+ years of experience 30+ years of experience BT Financial Group and GE ANZ and Suncorp Group GE, Westpac, and Househol
Slide 32: Global Executive Team
Global Executive Team Yung Ngo Alfred Nader Sarah Webb President APAC President North America President EMEA 20+ years of experience 20+ years of experience 20+ years of experience Westpac, St George Bank Western Union Business Barclays, Barclaycard and and GE Solutions and Travelex American Express
Slide 33: Q&A
Orx Q&A
Slide 34: 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 • B2C: High Value Consumer segment • Existing Clients: (previously
Slide 35: 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 23 March 2023. Material is provided in summary only and does not purport to be complete. The distribution of this material in jurisdictions