Slide 1: 1H21 Financial Results
© OFX 1H21 Financial Results Investor presentation 10 November 2020
Slide 2: Agenda
Agenda 1) 1H21 Summary 1H21 Financial Results FY21 Outlook Q&A Appendix
Slide 3: 1H21 Summary
© OFX 1H21 Summary Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: 1H21 highlights: revenue, clients and cash
• Revenue down 5.6%, COVID impacted 1Q down 11.1%, recovery in 2Q down 0.4% • ATVs down 11.6%, Consumer revenue down 16.3% resulting in EBITDA decline to $10.8m • Corporate revenue up 2.9%, 2Q up 11.6% • Transactions up 10.1% and transactions per active client up 13.8% • Registrations up 10.1% • Str
Slide 5: Consumer and Corporate segments through the cycle
• In highly volatile times, our Consumer segment is very valuable • Our Corporate segment performs through the cycle • Having a diverse Corporate segment minimises concentration risk • Our 24/7 digital + human service is highly valued • Our technology and banking network proved very resilient 1Q19 2
Slide 6: Transactions, ATVs, NOI and EBITDA by quarter
Transactions (# 000’s) 521.2 547.9 602.8 ATVs $23.2k $21.1k $18.6k Net Operating Income $59.9m $59.5m $53.9m Underlying EBITDA $16.1m $16.5m $10.8m 1Q19 1Q20 2Q19 2Q20 3Q19 3Q20 4Q19 4Q20 1Q20 1Q21 2Q20 2Q21 Net Cash Held $56.6m $51.5m $52.8m 1. Source: OFX analysis and https://www.thomsonreuters.co
Slide 7: - 1H19 2H19 1H20 2H20 1H21 0.0 .0 2.0 3.0 4.0 5.0 6.0 7.0
- 20 40 60 80 100 120 140 160 1H19 2H19 1H20 2H20 1H21 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 1H19 2H19 1H20 2H20 1H21 0 100 200 300 400 600 700 500 1H19 2H19 1H20 2H20 1H21 5 0 10 15 20 25 1H19 2H19 1H20 2H20 1H21 0 2 4 6 8 10 12 14 1H19 2H19 1H20 2H20 1H21
Slide 8: 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21
1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21 •
Slide 9: 1H21 Financial Results
© OFX 1H21 Financial Results Selena Verth Chief Financial Officer
Slide 10: 1H21 financial results summary
• Fee and trading income down 5.6%, improvement in 2Q up 16.6% v 1Q Fee and trading income ($m) 65.3 72.0 61.6 (5.6)% • NOI down 9.4% driven by lower ATVs (down 11.6%), Net operating income ($m) 59.5 65.6 53.9 (9.4)% Transactions up 10.1% Underlying operating expenses1 ($m) (43.0) (43.9) (43.2) 0.3%
Slide 11: Operating expenses
Employee expense 26.8 26.6 27.9 4.1% • Underlying operating expenses $43.2m up 0.3% as we invest in Enterprise & OLS Promotional expense 7.1 6.5 6.9 (2.7%) • Promotional expense mix more balanced between brand and search, driving Cost Technology expenses 2.8 3.5 2.8 (1.6)% per Registration down and
Slide 12: Product and technology progress
• Onboarding • New transfer flow 20% improvement in completion rates • Web experience • Limit orders created up 15% • Enterprise • Link Australia launched successfully • New products • Receivables product launched, clients live in UK and Nth America • Global Currency Account • New Amazon API live fo
Slide 13: Balance sheet and cash
• Net cash held $52.8m, up $1.3m, Net Available Cash $27.3m • Improved cash management, $10.8m underlying EBITDA generating $8.7m Cash held for own use 19.4 28.8 25.7 cash from operations, 81% conversion up from 49% in 1H20 Deposits due from financial institutions 32.1 32.3 27.1 • $2.1m increase in
Slide 14: FY21 Outlook
© OFX FY21 Outlook Skander Malcolm Chief Executive Officer and Managing Director
Slide 15: Cross-border payment revenue scenarios
Optimistic Pessimistic GPM x-border payment revenue scenario scenario E-commerce cross-border volumes grew double-digit in 2Q as initial logistic challenges were resolved. Increased volatility and uncertainty have enabled growth in foreign-exchange-related revenues and pushed up treasury-related tra
Slide 16: Segments we target
© OFX Segments we target Client needs we solve Strategic goal High value Consumers Corporate SMEs oR Typical ATVs of ~$17.9k biannual+ trading Transfer Money internationally from Ato B AA 4 Typical ATVs of ~$22.9k monthly+ trading Manage Manage international volatility risk payments flows of FX expo
Slide 17: Online Sellers and Enterprise growth drivers
• $3.3T 1 turnover in cross border ecommerce, expected • New enterprise partnerships can create a step change to grow strongly in revenue with accretive EBITDA margins • OFX well positioned growing to $1.6bn turnover in less • Announced Link Australia partnership with $5m revenue than 4 years throug
Slide 18: WiseTech and Link partnerships
• Leading ASX-listed technology company providing software solutions to the • Leading ASX-listed global cross-border payment company logistics execution industry globally • Global, fast and low-cost international payments to over 55 countries • Focused on enabling, improving and empowering the world
Slide 19: FY21 outlook and priorities
• Continued focus on growing North America • Continue to manage our expenses while maintaining • Grow Corporate clients globally flexibility to grow • Launch WiseTech, scale Link, and continue to grow • Disciplined investment where there is competitive the pipeline and win new partnerships different
Slide 20: Questions
Questions
Slide 21: Appendix
© OFX Appendix
Slide 22: New and existing clients
Increase from 76% in 1H20 40 30 5 35 25 4 30 20 25 3 20 15 15 2 10 10 1 5 5 0 0 0 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 New clients within the last 12 months Existing clients
Slide 23: Key initiatives by region and function
• Substantially improve Corporate client onboarding • Continue investment in North America • Scale Link Australia partnership • Scale Corporate CRM • Accelerate Corporate growth in UK & A&NZ • Scale API solutions in line with partner opportunities • Expand Online Sellers banking and enhance • Comple
Slide 24: Definitions
• Corporate: As of 1H21, Corporate excludes OLS; OLS is reported separately • OLS: Online sellers, business clients who sell online via marketplaces or digital platforms • Enterprise: International Payment Solutions in the segment reporting • Registrations: Number of clients that have successfully r
Slide 25: Disclaimer
The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 10 Nov 2020. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared without