Slide 1: FY23 Financial Results
FY23 Financial Results 23 May 2023 OFX Group Limited ACN 165 602 273
Slide 2: Agenda
Agenda 1 Performance update 2 Financials 3 Strategy & capital management 4 FY24 Outlook 5 Q&A 6 Appendix 2
Slide 3: Performance update
Performance update Skander Malcolm Chief Executive Officer and Managing Director 3
Slide 4: Record year driven by great execution
Record year driven by great execution Outstanding financial outcomes ● Strong NOI driven by revenue growth in all regions, acquisition of Firma, and careful margin management $39.1bn $62.4m ● Record underlying EBITDA of $62.4m with underlying Underlying EBITDA EBITDA margin of 29.2% Turnover up 17.9
Slide 5: Strong B2B performance
Strong B2B performance FY23 v FY22 Revenue $m Corporate 89.4% ● ATVs of $36.5k, up 14.0%, delivering turnover of $23.2bn 138.7 11.1% ex Firma 6.1 ● Healthy margins1, up 12 bps (4 bps ex Firma) 8.0 2H23 up 10.7% v 1H23 80.4 FY23 v FY22 ● Revenue declined 6.9% due to fewer 6.0 63.7 70.4 4.6 8.6 Online
Slide 6: Corporate segment is valuable and growing
Corporate segment is valuable and growing Loyal client base building recurring revenue FY23 ATVs stable ex Firma Growing transactions through the cycle Turnover1 ATVs2 Number of transactions per active client #3 36.5 24.5 33.0 22.7 20.6 20.8 27.1 17.3 25.3 31.9 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY2
Slide 7: Consumer fluctuates but performs through the cycle
Consumer fluctuates but performs through the cycle Sustained growth over the medium term … … with short term shifts Greater fluctuations in ATVs of high value use cases impacting revenue Revenue $m +24.5% +0.3% (15.6%) 71.4 71.6 38.3 36.9 67.9 34.4 33.2 57.3 CAGR +4.7% 17.6 18.8 16.3 17.2 18.1 19.3
Slide 8: A strong 1H, 2H impacted by lower Consumer confidence
A strong 1H, 2H impacted by lower Consumer confidence Revenue $m OFX Group Corporate 104.5 105.8 ● Revenue growth of 10.7% on 1H23 with additional month of Firma volumes. Revenue growth was 4.5% ex Firma 80.4 ● ATV’s down 2.2% on 1H23 offset by 3.6% growth in transactions and a 5bp 68.9 71.3 increas
Slide 9: Financials
Financials Selena Verth Chief Financial Officer 9
Slide 10: Record results, healthy fundamentals
Record results, healthy fundamentals Financial results FY22 FY23 V% Financial metrics ($m) ● Fee and trading income up 42.4% with strong contribution from Fee and trading income (revenue) 158.0 225.0 42.4% Firma and continued healthy conversion to NOI Net operating income 147.0 214.1 45.6% ● Underly
Slide 11: Continuing to invest for growth
Continuing to invest for growth Underlying operating expenses FY22 FY23 V% ($m) Employment expenses 66.4 105.0 58.2% ● Employee expenses up $38.6m, including $26.2m Firma (193 FTE at acquisition) Promotional expenses 16.5 16.8 1.5% ● Technology up $3.1m, driven by Firma Information technology expens
Slide 12: Strong margin management
Strong margin management NOI Margin NOI Margin walk 0.05% 0.55% 0.70% 0.65% 0.04% 0.01% 0.01% 0.65% 0.44% 0.60% 0.55% 0.55% 0.50% 0.45% 0.40% 0.35% 0.30% FY20 FY21 FY22 FY23 FY22 Pricing Interest & other Treasury Firma FY23 Income Revenue NOI margin NOI margin (ex same currency) 12
Slide 13: Strong balance sheet, healthy cash generation
Strong balance sheet, healthy cash generation Balance Sheet ($m) 31 Mar 22 31 Mar 23 ● Net cash held $93.8m, up $9.6m from 31 Mar 22. Net available cash Cash held for own use 59.1 68.2 $67.4m, up $24.8m including reduction in collateral balances of $15.2m Cash held for settlement of client liabiliti
Slide 14: Investing to drive sustainable growth
Investing to drive sustainable growth Payments excellence Risk, data and security Intangible investments1 $m ● Enhancing payment engine to enable faster ● Improved risk assessment capabilities for 8.3% payment capabilities onboarding and transactions 6.7% ● Improved connections into banking partners
Slide 15: Strategy & Capital Management
Strategy & Capital Management Skander Malcolm Chief Executive Officer and Managing Director 15
Slide 16: Building the world's leading cross-border payments specialist
Building the world’s leading cross-border payments specialist Huge opportunity Target segments Competitive positioning More valuable company Distinctive CVP Healthy revenue growth US$206bn1 cross-border payments market which keeps growing Corporate ++ + High recurring revenue Digital Human 72% marke
Slide 17: Improving on best-in-class B2B client experience
Improving on best-in-class B2B client experience Client need Digital access Move money Protect money Accept money SPOT FORWARDS SIMPLE VIRTUAL ACCOUNTS Today 71 NPS Future MODERN USER INTERFACE CARD (MVP) CASH FLOW HEDGING MULTI-CURRENCY ACCOUNT Investing in … 1. Data capture & 2. Accounts payable 3
Slide 18: Generating value from B2B clients beyond spot FX
Generating value from B2B clients beyond spot FX OFX B2B portfolio revenue composition Today Future % total revenue Indicative Grow active clients Forwards Card and subscription 5%+ Forwards 20% Increase transactions per active Card and subscription client at a low marginal cost Spot Spot ~75% Incre
Slide 19: Benefit to shareholders through active capital management
Benefit to shareholders through active capital management 1 Initiate share buyback ● Commitment to generate value and return capital to shareholders ● 12-month program ● Sharing the upside of our strong cash flow generation ● On-market buyback ● Expected to be ROE and EPS accretive ● Up to 10% of sh
Slide 20: FY24 Outlook
FY24 Outlook Skander Malcolm Chief Executive Officer and Managing Director 20
Slide 21: FY24 Outlook: expect to grow
FY24 Outlook: expect to grow FY24 Assumptions FY24 Expectations Core Underlying NOI Global Corporate activity to trend Corporate growth in line with EBITDA higher as interest rates approach historic CAGR. Enterprise steady $225m - $243m $63m - $74m peak growth Plus Paytron ~$1m1 High Value Consumer
Slide 22: Q&A
Orx Q&A
Slide 23: Appendix
Orx Appendix
Slide 24: A snapshot of Paytron
A snapshot of Paytron Overview Platform features 1. Data capture & pre-accounting 2. AP automation & approval workflows 3. Corporate cards & expenses 2020 Year founded Based in Australia Founders with >30 years’ Jaco Veldsman & experience across banking, Francois Henrion trading, FX, and payments 4.
Slide 25: Growth in all underlying metrics resulting in record turnover
Growth in all underlying metrics resulting in record turnover Transactions per Active clients active client Transactions ATV Turnover 146.3k 9.2 1,342k $29.1k $39.1bn OFX Group1 12.2% up from FY22, 13.8% up on FY22 3.6% up on FY22 17.9% up on FY22 2.9% up from FY22 Core OFX up 7.9%2 from FY22 Active
Slide 26: Strong Corporate growth across regions offsetting Consumer
Strong Corporate growth across regions offsetting Consumer Revenue $m APAC North America EMEA 44.6 45.0 44.9 44.9 43.8 39.7 39.1 34.4 17.2 14.6 13.4 22.4 11.5 20.7 10.9 18.3 15.4 8.9 1H21 2H21 1H22 2H22 1H23 2H23 1H21 2H21 1H22 2H22 1H23 2H23 1H21 2H21 1H22 2H22 1H23 2H23 Corporate Consumer OLS Ente
Slide 27: Attractive Recurring Revenue
Attractive Recurring Revenue Revenue from Existing Clients 84% increase from 77% in FY22 88% 76% 82% Corporate revenue $m High Value Consumer revenue $m Online Seller revenue $m 70 40 5 60 35 30 4 50 25 40 3 20 30 15 2 20 10 1 10 5 0 0 0 2H21 2H18 1H23 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H
Slide 28: Key Metrics for OFX Group
Key Metrics for OFX Group FY23 OFX Group OFX Firma OFX Group OFX Firma Key Metrics Financial Results Turnover ($bn) 39.1 31.4 7.7 Net Operating Income ($m) 214.1 156.8 57.3 - FX 32.5 25.6 6.9 - Same currency 6.6 5.8 0.8 NOI Margin 0.55% 0.50% 0.75% Fee and trading income ($m) 225.0 165.3 59.7 - Reve
Slide 29: 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 • B2B: Corporate, Online Sellers (OLS) and Enterprise segments • Corporate: As of 1H21, Corporate excludes OLS; OLS is reported se
Slide 30: 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 23 May 2023. Material is provided in summary only and does not purport to be complete. The distribution of this material in jurisdictions ou