Ofx Group Ltd. · ASX:OFX
Ofx — Shareholder Meeting (August 2022)
41 slides from Ofx's shareholder meeting presentation, Aug 11, 2022
Slide 1: Annual General Meeting
Annual General Meeting 11 August 2022
Slide 2: Welcome
Welcome For technical support during the meeting: Email agm@ofx.com or 2 call +61 2 8667 9160
Slide 3: Agenda
Agenda 1 Chairperson’s address 2 CEO and Managing Director’s address 3 Formal business 4 Close For technical support during the meeting: Email agm@ofx.com Call +61 2 8667 9160
Slide 4: Chairperson’s address
Chairperson’s address Steven Sargent
Slide 5: CEO and Managing Director’s address
CEO and Managing Director’s address Skander Malcolm
Slide 6: FY22 Recap: Record NOI delivering record EBITDA
FY22 Recap: Record NOI delivering record EBITDA Outstanding financial outcomes • Record NOI of $147.0m driven by revenue momentum and reductions across commissions and bank fees Turnover of NOI of • Underlying EBITDA of $44.5m, up 53.1% with losses $33.2bn $147.0m down 94.1% to $0.1m due to investme
Slide 7: FY22 Recap: Strong momentum with double digit growth in 2H22 v 1H22
FY22 Recap: Strong momentum with double digit growth in 2H22 v 1H22 Turnover ($bn) Net Operating Income ($m) Underlying EBITDA ($m) 18.2 78.4 24.2 15.0 21.7 13.1 13.8 65.6 68.6 19.6 20.3 64.0 11.5 11.2 59.5 53.9 16.5 10.8 1H20 2H20 1H21 2H21 1H22 2H22 1H20 2H20 1 1H21 2H21 1H22 2H22 1H20 2H20 1 1H21
Slide 8: 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 9: 1Q23 Update
© OFx 1Q23 Update Skander Malcolm
Slide 10: 1Q23: Continued strong results, NOI up 44.7% v 1Q22
1Q23: Continued strong results, NOI up 44.7% v 1Q22 and 21.5% v 4Q22 OFX quarterly NOI 1Q23 Highlights v 1Q22 Healthy portfolio 1 47.9 • Firma performing well, delivering NOI of $10.5m • Continued elevated ATV’s and trading in Consumer 39.0 39.4 • Corporate continues to grow, up 83.1% (up 19.8% ex F
Slide 11: Excellent performance across key metrics
Excellent performance across key metrics Turnover ($bn) Fee & Trading Income 1 ($m) Net Operating Income ($m) 51.0 2 47.9 2 9.3 9.6 8.8 39.4 41.8 42.2 39.0 7.7 38.0 35.6 7.3 35.9 33.1 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 FX Same Currency 1Q23 v 1Q22 1Q23 v 1Q22
Slide 12: Strong revenue growth in Consumer and Corporate
Strong revenue1 growth in Consumer and Corporate High Value Consumer Corporate Online Seller Enterprise 2 26.4 2 18.7 18.8 18.3 18.2 17.7 17.7 16.7 15.4 14.4 2.1 2.0 2.2 2.3 2.0 1.4 1.5 1.6 1.5 1.3 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1Q
Slide 13: Firma transaction largely completed, integration underway
Firma transaction largely completed, integration underway Transaction highlights Integration • Completed the C$90m (A$98m) acquisition of 190+ employees 100% of Firma Foreign Exchange Corporation including 70 Salespeople (Firma) and most of its subsidiaries • Cross functional Integration Team in pla
Slide 14: FY23 outlook
FY23 outlook Focus on strategic priorities Deliver strong results • Integrate Firma - focus on people, synergies and client growth • Continue to grow North America, launch European expansion NOI (Including Firma) Underlying EBITDA • Drive momentum in Corporate and Online Seller segments $200m– $212m
Slide 15: Formal business
© OFx Formal business
Slide 16: How to vote online
How to vote online If you have any issues voting: Call +61 2 8667 9160 16
Slide 17: How to ask questions online
How to ask questions online If you have any issues asking questions: Call +61 2 8667 9160 17
Slide 18: Item 1 - Financial statements and Reports of the Directors and Auditors
Item 1 - Financial statements and Reports of the Directors and Auditors To receive and consider the Financial Report, the Directors Report and the Independent Auditors Report for the Company for the financial year ended 31 March 2022. There is no vote on this item. 18
Slide 19: Item 2 - Re-election of Mrs Patricia Cross
Item 2 - Re-election of Mrs Patricia Cross To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Patricia Cross, who retires in accordance with Article 47(d) of the Company’s Constitution, and being eligible for re-election, be re- elected as a Director of th
Slide 20: Item 2 - Re-election of Mrs Patricia Cross
Item 2 - Re-election of Mrs Patricia Cross Intention is that Mrs Cross will Patricia Cross is a highly experienced Non-Executive Director and Chair. Over the past 25 years she has served on eight large, listed company boards in Australia replace Mr Sargent as Chair and the UK as well as several gove
Slide 21: Votes on Item 2 - Re-election of Mrs Patricia Cross
Votes on Item 2 - Re-election of Mrs Patricia Cross Votes For* 99.49% Against 0.01% Open votes (other than Chairperson) 0.49% Total votes 166,788,182 (67.33%) Abstain 24,700 21 Figures relate to proxy votes lodged up to 2:00pm AEST on 9 August 2022. * Votes in favour consist of direct and open proxi
Slide 22: Item 3 - Re-election of Ms Connie Carnabuci
Item 3 Re-election of Ms Connie Carnabuci To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Connie Carnabuci, who retires in accordance with Article 47(a) of the Company’s Constitution, and being eligible for re-election, be re-elected as a Director of th
Slide 23: Item 3 - Re-election of Ms Connie Carnabuci
Item 3 Re-election of Ms Connie Carnabuci • Member of the People, Culture Ms Carnabuci has 35 years’ experience as a senior legal advisor to, and and Remuneration Committee as an independent non-executive director of, boards of listed and • Member of the Nomination privately owned companies in Austr
Slide 24: Votes on Item 3 - Re-election of Ms Connie Carnabuci
Votes on Item 3 Re-election of Ms Connie Carnabuci Votes For* 99.47% Against 0.03% Open votes (other than Chairperson) 0.49% Total votes 166,789,482 (67.33%) Abstain 24,700 24 Figures relate to proxy votes lodged up to 2:00pm AEST on 9 August 2022. * Votes in favour consist of direct and open proxie
Slide 25: Item 4 - Remuneration Report
Item 4 - Remuneration Report To consider and, if thought fit, pass the following non-binding resolution as an ordinary resolution: That the OFX Group Limited Remuneration Report for the financial year ended 31 March 2022 be adopted. This is a non-binding advisory vote. 25
Slide 26: Item 4 - FY22 KMP remuneration outcomes
Item 4 – Remuneration Report - FY22 KMP remuneration outcomes Short Post Long term employment term benefits benefit benefits Share-based payments Deferred STI – LTI – Cash Long STI – Retention & ESP and salary Cash service Performance One-off Performance and fees bonus Superannuation leave Rights1 a
Slide 27: Item 4 - FY22 Incentive Schemes
Item 4 – Remuneration Report - FY22 Incentive Schemes Short Term Incentive Scheme (STI) Long Term Incentive Scheme (LTI) FY22 Company STI metrics and weightings FY22 LTI plan performance measures Metric Weighting Performance measure Weighting Underlying NOI 30% Underlying EPS CAGR 50% Underlying EBI
Slide 28: Votes on Item 4 - Remuneration Report
Votes on Item 4 – Remuneration Report Votes For* 98.44% Against 1.37% Open votes (other than Chairperson) 0.20% Total votes 157,692,147 (63.65%) Abstain 8,137,120 28 Figures relate to proxy votes lodged up to 2:00pm AEST on 9 August 2022. * Votes in favour consist of direct and open proxies to the C
Slide 29: Item 5 - Approval of OFX Group Limited Global Equity Plan
Item 5 - Approval of OFX Group Limited Global Equity Plan To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of Exception 13 of ASX Listing Rule 7.2 Section 260C(4) of the Corporations Act 2001 (Cth),and for all other purposes, the OFX Gr
Slide 30: Votes on Item 5 - Approval of OFX Group Limited Global Equity Plan
Votes on Item 5 - Approval of OFX Group Limited Global Equity Plan Votes For* 99.41% Against 0.40% Open votes (other than Chairperson) 0.19% Total votes 163,365,778 (65.94%) Abstain 1,964,199 30 Figures relate to proxy votes lodged up to 2:00pm AEST on 9 August 2022. * Votes in favour consist of dir
Slide 31: Item 6 - Issue of Short Term Performance Rights
Item 6 - Issue of Short Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY22 Short Term Incentives To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of ASX Lis
Slide 32: Item 6 - FY22 STI performance rights
Item 6 - FY22 STI performance rights Shareholder approval is • FY22 Company Performance Measures were set at: being sought for the – Underlying NOI (30%); – Underlying EBITDA (30%); granting of performance – Strategic Investments (20%); rights to Mr Malcolm – Risk and ESG (20%) pursuant to Mr Malcol
Slide 33: Votes on Item 6 - Issue of Short Term Performance Rights
Votes on Item 6 - Issue of Short Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY22 Short Term Incentives Votes For* 98.52% Against 1.29% Open votes (other than Chairperson) 0.19% Total votes 164,246,182 (66.30%) Abstain
Slide 34: Item 7 - Issue of Long Term Performance Rights
Item 7 - Issue of Long Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY23 Long Term Incentives To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of ASX Listi
Slide 35: Item 7 - FY23 Changes to LTI Plan
Item 7 - FY23 Changes to LTI Plan • Loan plan structure retired at end of FY21; no new awards have been issued under this plan FY23 LTI plan • LTI incentives for FY22 and onwards are issued as performance rights under the Global Equity Plan Amount • CEO LTI: 115% of TFR • Maintained three-year perfo
Slide 36: Item 7 - FY23 LTI performance rights
Item 7 - FY23 LTI performance rights Performance rights are issued in 2 separate tranches with separate vesting conditions: Shareholder approval is being sought for the granting of performance rights Tranche Threshold Target Stretch to Mr Malcolm in respect of Mr Malcolm’s Tranche A (EPS): 50% of FY
Slide 37: Item 7 - FY23 Remuneration overview
Item 7 - FY23 Remuneration overview FY22 Metrics Remuneration FY23 Metrics Grant Year 1 Year 2 Year 3 Fixed remuneration STI STI STI 30% Underlying NOI 30% Underlying NOI CEO: 30% Underlying EBT 30% Underlying EBITDA Target 115% of TFR 20% Strategic investments 20% Strategic investments 50% cash, 50
Slide 38: Votes on Item 7 - Issue of Long Term Performance Rights
Votes on Item 7 - Issue of Long Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY23 Long Term Incentives Votes For* 99.25% Against 0.56% Open votes (other than Chairperson) 0.19% Total votes 164,246,182 (66.30%) Abstain 1
Slide 39: Questions
Questions ?
Slide 40: Thank you
© OFx Thank you
Slide 41: The material contained in this document is a presentation of general information about OFX
• The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 11 August 2022. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared wi