Ofx Group Ltd. · ASX:OFX
Ofx — FY2022 Earnings Presentation
24 slides from Ofx's earnings presentation, May 17, 2022
Slide 1: FY22 Financial Results
FY22 Financial Results Investor presentation 17 May 2022
Slide 2: Agenda
Agenda Strong result, 1 healthy momentum 2 Strong fundamentals 3 Focus areas for FY23 4 Q&A 5 Appendix
Slide 3: Strong result, healthy momentum
Strong result, healthy momentum Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: Record NOI delivering record EBITDA
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 down $33.2bn $147.0m 94.1% to $0.1m due to investment in fraud
Slide 5: Strong momentum with double digit growth in 2H22 v 1H22
Strong momentum with double digit growth in 2H22 v 1H22 Turnover ($bn) Net Operating Income ($m) Underlying EBITDA ($m) 18.2 78.4 24.2 15.0 13.8 21.7 13.1 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 2H201 1H21 2H21 1H22 2H22 1H20 2H20 1H21 2H21 1H22 2H22
Slide 6: Growing a valuable portfolio
Growing a valuable portfolio Revenue $m Corporate Online Seller Enterprise 1 High Value Consumer 35.8 36.9 35.9 34.4 31.8 4.4 32.1 4.2 4.2 30.5 29.8 4.1 26.8 4.0 26.9 24.9 25.7 3.6 3.1 2.9 2.4 2.5 2.2 2.1 1H20 2H20 1H21 2H21 1H22 2H22 1H20 2H20 1H21 2H21 1H22 2H22 1H20 2H20 1H21 2H21 1H22 2H22 1H20
Slide 7: Double-digit revenue growth across all regions
Double-digit revenue growth across all regions Revenue $m APAC North America EMEA 44.6 39.1 39.7 39.1 36.7 22.4 34.4 20.7 18.3 13.4 17.3 12.5 15.4 11.1 11.5 15.0 10.9 8.9 1H20 2H20 1H21 2H21 1H22 2H22 1H20 2H20 1H21 2H21 1H22 2H22 1H20 2H20 1H21 2H21 1H22 2H22 Consumer Corporate OLS Enterprise Consu
Slide 8: Growing a valuable portfolio
Growing a valuable portfolio Revenue $m Corporate Online Seller 35.9 31.8 29.8 4.4 4.2 4.2 4.1 26.8 4.0 25.7 Revenue up 24.9 Revenue up 3.6 14.5%1 2.7%3 on FY21 on FY21 North America up 31.1% EMEA up 68.1% EMEA up 28.3% APAC down 10.9% APAC 2 up 4.9% North America down 4.8% 1H20 2H20 1H21 2H21 1H22
Slide 9: Growing a valuable portfolio
Growing a valuable portfolio Revenue $m Enterprise 1 High Value Consumer 36.9 35.8 34.4 32.1 3.1 30.5 2.9 2.5 Revenue up 26.9 2.4 2.2 Revenue up 2.1 24.5% 31.3% on FY21 on FY21 North America up 30.9% APAC up 23.1% EMEA up 18.8% 1H20 2H20 1H21 2H21 1H22 2H22 1H20 2H20 1H21 2H21 1H22 2H22 Enterprise P
Slide 10: Growth in all underlying metrics resulting in record turnover
Growth in all underlying metrics resulting in record turnover Active client growth With strong Led to increased At higher Resulting in in FY22 … trading activity … transaction volumes ex ATVs … record turnover offshore share purchases … Active clients Transactions per Transactions ATV Turnover 143.1
Slide 11: Strong fundamentals
Strong fundamentals Selena Verth Chief Financial Officer
Slide 12: Record financial result driven by growth across the portfolio
Record financial result driven by growth across the portfolio Financial results FY21 FY22 V% Financial Metrics • Fee and trading income up 17.7% with strength across all regions and segments Fee and trading income (revenue) ($m) 134.2 158.0 17.7% • NOI growth rate of 24.7% stronger than fee and trad
Slide 13: Targeted investments driving good outcomes
Targeted investments driving good outcomes Underlying operating expenses $m FY21 FY22 V% • Employee expenses up 16.4% with additional 52 employees, wage inflation and strong incentive payments. Investing in customer service (sales and Employee expenses 57.0 66.4 16.4% operations) and technology Prom
Slide 14: Strong balance sheet, good cash flow
Strong balance sheet, good cash flow $m 31 Mar 21 31 Mar 22 • Net cash held $84.2m, up $23.6m, Net Available Cash $31.6m down $5.2m with increased collateral for volatility in March and GCA product Balance Sheet • Strong cash generation; $44.5m underlying EBITDA delivering $47.6m net cash flows Cash
Slide 15: Investment in our global operating model
Investment in our global operating model Intangible investments $m1 Payments excellence 12.0 – 16.0 10.5 9.0 8.0 Single global platform Customer Risk service management FY20 FY21 FY22 FY23E Actual Investment Forecast Investment World class team FY22 Delivery FY23+ Delivery • Continue to expand curre
Slide 16: Focus areas for FY23
Focus areas for FY23 Skander Malcolm Chief Executive Officer and Managing Director
Slide 17: 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 • Integration leads appointed on both sides and (Firma) and most of its subsidi
Slide 18: 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) Underling EBITDA • Drive momentum in Corporate and Online Seller segments $200m– $212m
Slide 19: 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 20: Appendix
© OFx Appendix
Slide 21: Attractive Recurring Revenue
Attractive Recurring Revenue Revenue from Existing Clients 77% decrease from 79% in FY21 Corporate Revenue $m Online Seller Revenue $m High Value Consumer Revenue $m 40 5 40 35 35 4 30 30 25 25 3 20 20 15 2 15 10 10 1 5 5 0 0 0 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H17 2H17 1H
Slide 22: Strong quarter on quarter NOI growth
Strong quarter on quarter NOI growth OFX quarterly NOI growth 14 day moving average of daily % movement in spot price (AUD/USD) 2 24.4% 20.6% 22.5% 33.0% 1Q21 1Q22 2Q21 2Q22 3Q21 3Q22 4Q21 4Q22 OFX comparable period OFX current period Market growth1 8.1% 9.0% 4.0% 12.2% Days of volatility FY21 FY22
Slide 23: 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 • Corporate: As of 1H21, Corporate excludes OLS; OLS is reported separately • Cost per Registration: Promotional expense / registr
Slide 24: 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 17 May 2022. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepar