Slide 1: FY15 Full Year Result
26 May 2015 FY15 Full Year Result Chief Executive Officer – Neil Helm Chief Financial Officer – Mark Ledsham Half Year Result Full Year Result Annual Meeting 25 November 2014 5 August 2015 26 May 2015
Slide 2: Executive summary
Executive summary • Net operating income increased by 24% on FY14 to $90.1m • Pro forma EBTDA increased by 22% on FY14 to $34.5m • EPS of 10.11c per share for FY15, up 18% on FY14 pro forma EPS • Fully franked final dividend of 3.58c per share (70% dividend payout ratio) • Full year dividend of 7.08
Slide 3: Contents
Contents 1. Highlights - FY15 Full Year 2. Banking relationships 3. Industry Trends 4. Summary and Outlook
Slide 4: Performance – FY15 Full Year
Performance – FY15 Full Year
Slide 5: FY15 Full Year - Key metrics
FY15 Full Year - Key metrics • The FY15 result delivered strong growth on FY14 across all key financial and operational metrics FY15 FY14 Growth Financial Metrics1 Turnover ($bn's) 16.6 13.6 22% Net Operating Income 2 ($m's) 90.1 72.5 24% Expenses2 ($m's) 55.6 44.2 26% Pro Forma EBTDA ($m's) 34.5 28
Slide 6: Half Year - Key metrics
FY15 Half Year - Key metrics • 2H15 delivered strong growth on 2H14 across all key financial and operational metrics, returning to historic growth levels 2H15 1H15 2H14 1H14 2H14 vs 2H15 1H14 vs 1H15 Financial Metrics 1 Turnover ($bn's) 9.1 7.5 7.0 6.6 30% 14% Net Operating Income 2 ($m's) 48.5 41.6
Slide 7: Half Year – Client metrics
FY15 Half Year – Client metrics Active Client growth has … on the back of consistent … and a record number of continued in the second growth in Existing Clients … NDCs. half… Active Clients Existing Clients1 New Dealing Clients 143k 111k 32k 18% up on 2H14 18% up on 2H14 18% up on 2H14 Active client
Slide 8: Half Year – Operational metrics
FY15 Half Year – Operational metrics Transaction numbers have … combined with a slight … strong growth in turnover increased slightly ahead of increase in ATV has driven … in 2H15. Active Client growth which … Transactions ATV Turnover 367k $25k $9.1b 24% up on 2H14 5% up on 2H14 30% up on 2H14 Tran
Slide 9: Half Year – Financial metrics
FY15 Half Year – Financial metrics Net Operating Income … an increase in investment … a consistent tax rate growth was in line with resulted in a slight reduction resulted in a similar level of turnover growth however ... of pro-forma EBTDA margin growth in pro-forma NPAT on and slower growth in pro
Slide 10: Full Year - Growing base of long term customers
FY15 Full Year - Growing base of long term customers • Retention drives client lifetime value and adds operating leverage • Percentage of fee and commission income attributable to clients older than 3 years continues to increase. – This is despite the fact that the US, Travelex and MoneyGram were al
Slide 11: Full Year - Performance was strong across the Group
FY15 Full Year - Performance was strong across the Group • Continued growth in our largest region - Australia/New Zealand • Strong penetration into the US through resulted in the strong revenue growth in North America. – Successful targeted online acquisition coupled with an increasing existing clie
Slide 12: Full Year - Net operating income
FY15 Full Year - Net operating income • All segments performed well delivering 25% fee $m FY15 FY14 Growth Fee and commission income 95.6 76.7 25% and commission income growth Transaction costs 7.3 5.7 – Transaction costs increased as percentage of fee and Net fee and commission income 88.4 71.0 com
Slide 13: Full Year - Operating expenses
FY15 Full Year - Operating expenses Pro forma • Promotional costs increased driving new dealing $m FY15 Variance FY141 clients additions. Employee costs 30.4 25.3 20% • The Group invested in additional headcount to Promotional costs 13.9 10.6 31% Occupancy costs 2.0 1.6 25% support and drive growth
Slide 14: Full Year - Reconciliation of underlying earnings
FY15 Full Year - Reconciliation of underlying earnings • There were no adjustments to the current A$000’s FY15 FY14 Growth period. Statutory EBTDA 34.5 22.4 54% Statutory EBTDA margin 38.3% 30.9% • Prior year adjustments related to the IPO and Annualisation of ongoing IPO costs1 - (1.0) the unsucces
Slide 15: Full Year - Balance sheet as at 31 March 2015
FY15 Full Year - Balance sheet as at 31 March 2015 ($Am) ASSETS FY15 FY14 • The Group remained free from interest bearing 3 Cash 168.8 148.6 debt Receivables due from financial institutions 1,3 5.2 0.2 • Increases in cash were offset by increases in Derivative financial instruments 10.3 8.6 Other as
Slide 16: Full Year - Strong cash flow generation
FY15 Full Year - Strong cash flow generation Free cash flow(1) and conversion(2) • Strong free cash flow conversion continues to be a feature of the business 40 114% Millions • $38m operating cash flow before tax and client 112% 35 liabilities 110% • Free cash flow to EBTDA ratios in excess of 100%
Slide 17: Explaining the banking relationships
Explaining the banking relationships
Slide 18: Our banking relationships
Our banking relationships • Our business model necessitates banking relationships that provide the following services: – transactional banking (to make and receive payments, for and from our clients, in multiple currencies) – wholesale foreign exchange (hedging and liquidity) – deposits (overnight c
Slide 19: Industry Trends
Industry Trends
Slide 20: The industry trends we are observing
The industry trends we are observing • Banking Industry – Banking services are increasingly moving online, though the speed of the transition to online varies by country to country – Digital products and services are being embraced primarily on mobile devices – Consumers expect an ‘all-channel’ expe
Slide 21: The market opportunity is significant and growing
The market opportunity is significant and growing • Global Payments is forecast to grow between 2013 - 2018 at 7.8% to USD $2.3 trillion • Market penetration by the Money Service Business (MSB) industry is still low in our core regions 1,746 MSB Market Penetration – MSB Revenue Potential* - $A, mill
Slide 22: Summary and Outlook
Summary and Outlook
Slide 23: Summary and Outlook
Summary and Outlook • Net operating income increased by 24% on FY14 to $90.1m • Pro forma EBTDA increased by 22% on FY14 to $34.5m • EPS of 10.11c per share for FY15, up 18% on FY14 pro forma EPS • Fully franked final dividend of 3.58c per share (70% dividend payout ratio) • Full year dividend of 7.
Slide 24: The material contained in this document is a presentation of general information about the
The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date of this presentation (26 May 2015). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes as