Slide 1: Financial Year 2019 Results
Financial Year 2019 Results Investor presentation 21 May 2019
Slide 2: Agenda
Agenda 1. FY19 Summary 2. FY19 Financial results 3. FY20 Outlook 4. Q&A 5. Appendix 2
Slide 3: FY19 Summary
FY19 Summary Skander Malcolm Chief Executive Officer and Managing Director 3
Slide 4: Strong operating result
Strong operating result Results underpinned by good fundamentals NOI 8.0% • Underlying EBITDA1 ahead of range due to strong March, with better than expected $118.7m margins and benefits of cost actions • Transactions increased 8.8% and transactions per active client2 up 12.6% • Annual positive opera
Slide 5: Good execution in a soft market
Good execution in a soft market Consistent NOI growth despite a lower market - OFX consistently outperforms market volumes 2H19 total market spot volume down (8)% Indexed1 OFX FY19 NOI vs Thompson Reuters FX volumes ($bn) Thompson Reuters average daily FX volumes ($bn) 350 326 311 Month Market OFX V
Slide 6: Active client engagement increasing
Active client engagement increasing Decline in active clients Driven by increasing Strong growth in Continue to attract high Client value increases but increasing lifetime client engagement… transaction volumes … ATV clients… turnover across the group value… Transactions Active clients Transactions
Slide 7: Expanding our lifetime revenue
Expanding our lifetime revenue • Very clear targeting of high value consumers Growing the lifetime revenue of our clients1 • Strong digital experience: ✓ updated mobile app Consumer ✓ new website in all regions ✓ digital KYC refresh ✓ significantly improved North American experience • Human service
Slide 8: Diverse revenue growth, strong global platform
Diverse revenue growth, strong global platform Revenue Turnover + 11.9% Transactions + 1.7% 1H18 2H18 1H19 2H19 Europe Revenue North America Revenue Asia 1H18 2H18 1H19 2H19 Turnover + 12.7% Transactions + 47.4% 1H18 2H18 1H19 2H19 A&NZ Turnover + 17.0% Revenue Transactions + 22.5% Turnover + 0.8% T
Slide 9: FY19 Financial results
FY19 Financial results Selena Verth Chief Financial Officer 9
Slide 10: FY19 financial results
FY19 financial results Financial results FY18 FY19 Var % Heathy financial indicators Financial Metrics • Lead revenue indicators: Fee and trading income ($m) 119.0 128.7 8.2% – Growth in turnover and transactions Net operating income ($m) 109.9 118.7 8.0% – NOI margin (excluding IPS) stable at 55bps
Slide 11: Delivered annual positive operating leverage
Delivered annual positive operating leverage Underlying operating expenses 1 Improved cost management and visibility $m FY18 FY19 Var % Employee expense (46.1) (50.3) 9.0% • Employee average FTEs increased 8.6%, with revenue generating Promotional expense (16.1) (17.6) 8.8% FTEs increasing by 10% Te
Slide 12: Infrastructure investment of $7.7m, driving growth
Infrastructure investment 1 of $7.7m, driving growth Investments Impact • Website Client • Mobile application • Registration completion rate from app up 2x experience • North America • NPS up to 67 from 60, every region up 10%+ • Global Currency Account • Enhanced rate feed to new and existing partn
Slide 13: No debt, strong cash flow and high returns
No debt, strong cash flow and high returns $m 31-Mar-18 31-Mar-19 • Cash held for own use including deposits with financial institutions, $58.6m, up 1.9% from $57.5m as at 31 March 2018 Assets • Final dividend of 3.28c per share will be paid out of free cash flow Cash held for own use 47.3 26.1 • Fu
Slide 14: FY20 outlook
FY20 outlook Skander Malcolm Chief Executive Officer and Managing Director 14
Slide 15: FY20 – Focus areas
FY20 – Focus areas Growth drivers Client Experience Geographic Expansion Partnerships • Substantially improve corporate • Continued strong investment in North • Secure substantial commercial or client onboarding America and Asia enterprise opportunities • Deploy corporate CRM • Grow UK Corporate • C
Slide 16: Grow investment in corporate marketing & sales
Grow investment in corporate marketing & sales Account OFX - provider of choice for Corporate clients: Management • Build and deploy value propositions in corporate to Corporate Financial chosen client segments, and communicate our Client Teams Insights differentiators • Increase investment in direc
Slide 17: Global Currency Account – transferred $2.7b in first 3 years
Global Currency Account – transferred $2.7b in first 3 years FY19 highlights What’s next in FY20 High Growth GCA revenue increased by 35% • 3rd Party integration to GCA compared to previous year and over 100% • Expanding payment Improved Platform increase in new clients capabilities Launched new cli
Slide 18: FY20 – Summary outlook
FY20 – Summary outlook Growth drivers Accelerate Increase investment in corporate Financial commitments corporate growth sales and marketing Annual positive operating leverage on an EBITDA basis Increase investment in APIs to Client support enterprise clients and Maintain stable NOI margins Experien
Slide 19: Q&A
Q&A 19 19
Slide 20: OFX Group Limited disclaimer
The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 21 May 2019. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared without
Slide 21: Appendix
Appendix 21
Slide 22: Lower volatility in FY19 vs. FY18
15bps (15bps) 0.000% 0.200% 0.300% 0.400% -0.300% -0.200% -0.100% 0.100% 1-Apr 6-Apr 11-Apr 16-Apr 21-Apr 26-Apr 1-May 6-May 11-May 16-May 21-May 26-May 31-May 5-Jun 10-Jun 15-Jun 20-Jun 25-Jun 30-Jun 5-Jul 10-Jul 15-Jul 20-Jul 25-Jul 30-Jul 4-Aug 9-Aug 14-Aug 19-Aug Lower volatility in FY19 vs. FY1
Slide 23: Strong recurring revenue
Strong recurring revenue 40 Consumer revenue $m 35 30 25 20 15 10 5 0 2H16 1H15 2H15 1H16 1H17 2H17 1H18 2H18 1H19 2H19 Returning Active Clients at New clients clients 31-Mar-19 24% 76% 156.5k Up from 72% in Down 3.3% from 31-Mar-18 FY18 40 Corporate revenue $m 35 30 25 20 15 10 New Clients 5 Return