Ofx Group Ltd. · ASX:OFX
Ofx — Shareholder Meeting (August 2021)
38 slides from Ofx's shareholder meeting presentation, Aug 26, 2021
Slide 1: Annual General Meeting
Annual General Meeting 26 August 2021
Slide 2: Welcome
Welcome For technical support during the meeting: Email agm@ofx.com or call +61 492 828 366 2
Slide 3: Contents
Contents Agenda 1 Chairman’s address 2 CEO and Managing Director’s address 3 Formal business 4 Close For technical support during the meeting: Email agm@ofx.com Call +61 492 828 366
Slide 4: Chairman’s address
Chairman’s address Steven Sargent
Slide 5: CEO and Managing Director’s address
CEO and Managing Director’s address Skander Malcolm
Slide 6: FY21 Recap: Strong rebound in 2H21 driving momentum
FY21 Recap: Strong rebound in 2H21 driving momentum Turnover ($bn) Net Operating Income ($m) Underlying EBITDA ($m) 13.1 13.8 21.7 11.5 11.2 65.6 64.0 19.6 59.5 53.9 16.5 10.8 1 1 1 1H20 2H20 1H21 2H21 1H20 2H20 1H21 2H21 1H20 2H20 1H21 2H21 2H21 up 22.9% v 1H21 2H21 up 18.7% v 1H21 2H21 up 82.2% v
Slide 7: Building the world’s leading value-added cross border payments specialist
Building the world’s leading value-added cross border payments specialist Opportunity Grow valuable segments Competitive Positioning More valuable company Distinctive CVP 130T USD cross-border payments market High Value Consumer + ü Healthy revenue growth + ü 75%+ recurring revenue OFX is a cross bo
Slide 8: 1Q22: Continued strong momentum, NOI up 33% v 1Q21 and 4.4% v 4Q21
1Q22: Continued strong momentum, NOI up 33% v 1Q21 and 4.4% v 4Q21 OFX quarterly NOI 1Q22 Highlights v 1Q21 1Q22 v 1Q20 +13.8% • Strong portfolio 1Q22 v 1Q21 • Corporate ATVs up 45.4% +33.0% • OLS NDCs up 17.7% • Enterprise pipeline: won and activating RBA and Douugh • Consumer rebound: transactions
Slide 9: A more valuable cross border specialist delivering record NOI growth
A more valuable cross border specialist delivering record NOI growth Fee & Trading Income 1 ($m) Net Operating Income ($m) Transactions (‘000s) 36.5 36.1 35.9 441.7 33.1 32.3 31.7 33.1 28.4 29.1 25.0 330.7 359.4 271.7 291.4 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 O
Slide 10: Strong growth in portfolio revenue
Strong growth in portfolio revenue1 High Value Consumer Corporate Online Seller Enterprise 16.7 15.7 16.0 14.4 15.2 15.2 14.1 14.5 12.4 11.6 2.1 2.1 2.1 2.1 2.1 1.2 1.2 1.3 1.0 1.0 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 Offshore share purc
Slide 11: FY22 outlook
FY22 outlook Focus on strategic priorities Progress Deliver strong results • Continue to grow North America • 33% NOI growth at stable margins driven by • Maintain principle of positive operating higher quality portfolio, excellent regional leverage1 while remaining flexible to pursue • Strong growt
Slide 12: Formal business
© OFX Formal business
Slide 13: How to vote online
How to vote online If you have any issues voting: Call +61 492 828 366 Step 1: Complete the voting card • During the meeting, the Chairman will indicate that the voting is open and the voting card will be shown. • The voting card can be repositioned on your screen. • There are 7 items to be voted on
Slide 14: How to ask questions online
How to ask questions online If you have any issues asking questions: Call +61 492 828 366 Step 1: Select the Q&A Button from the bottom menu bar • Navigate to the lowest section of your Zoom window and the bottom menu bar will appear • Click on the Q&A button, shown to the right by the green box. St
Slide 15: Item 1: Financial Report, Directors Report and Auditors Report
Item 1 To receive and consider the Financial Report, the Directors Report and the Independent Auditors Report for the Company for the financial year ended 31 March 2021. There is no vote on this item. 15
Slide 16: Item 2: Re-election of Douglas Snedden
Item 2 To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, Mr Douglas Snedden, who retires in accordance with Article 47(a) of the Company’s Constitution, and being eligible for re-election, be re-elected as a Director of the Company. 16
Slide 17: Douglas Snedden
Douglas Snedden • Chair of the People, Culture and Mr Snedden (AO, BEc, MAICD ) has over 30 years’ experience in Remuneration Committee finance, consulting, strategic management and outsourcing. He has previously worked as Country Managing Director of Accenture Australia. • Chair of the Nomination C
Slide 18: Votes on item 2
Votes on item 2 Votes For* 99.82% Against 0.04% Open votes (other than Chairman) 0.13% Total votes 169,487,806 (69.31%) Abstain 139,411 18 Figures relate to proxy votes lodged up to 2:00pm AEST on 24 August 2021. * Votes in favour consist of direct and open proxies to the Chairman. 18
Slide 19: Item 3: Re-election of Cathy Kovacs
Item 3 To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, Ms Cathy Kovacs, who retires in accordance with Article 47(d) of the Company’s Constitution, and being eligible for re-election, be re-elected as a Director of the Company. 19
Slide 20: Cathy Kovacs
Cathy Kovacs Member of the Audit, Risk and Ms Kovacs (Bcomm, MappFin) has over 30 years operational Compliance Committee experience in the financial services industry, having held senior executive leadership roles at Westpac Banking Group, Ellerston Capital, Macquarie Group and BT Investment Bank. O
Slide 21: Votes on item 3
Votes on item 3 Votes For* 99.84% Against 0.03% Open votes (other than Chairman) 0.13% Total votes 169,493,004 (69.31%) Abstain 134,213 21 Figures relate to proxy votes lodged up to 2:00pm AEST on 24 August 2021. * Votes in favour consist of direct and open proxies to the Chairman. 21
Slide 22: Item 4: Remuneration Report
Item 4 To consider and, if thought fit, pass the following non-binding resolution as an ordinary resolution: That the OFX Group Limited Remuneration Report for the year ended 31 March 2021 be adopted. This is a non-binding advisory vote. 22
Slide 23: FY21 KMP remuneration outcomes
FY21 KMP remuneration outcomes Short Post Long Share term employment term based benefits benefit benefits payments Deferred Cash Long STI – LTI – salary Cash service Performance STI – Executive Year and fees bonus Superannuation leave Rights1 Retention Share Plan2 Total Current KMP S Malcolm3 2021 6
Slide 24: FY21 Incentive Schemes
FY21 Incentive Schemes Short Term Incentive Scheme (STI) Long Term Incentive Scheme (LTI) FY21 Company STI metrics and weightings FY21 LTI plan Metric Weighting Loan forgiveness Tranche 1: Absolute TSR Tranche 2: Normalised compound annual growth EBITDA per share NOI 10% rate (CAGR) - 50% CAGR - 50%
Slide 25: Votes on item 4
Votes on item 4 Votes For* 99.59% Against 0.28% Open votes (other than Chairman) 0.13% Total votes 169,162,372 (69.18%) Abstain 239,513 25 Figures relate to proxy votes lodged up to 2:00pm AEST on 24 August 2021. * Votes in favour consist of direct and open proxies to the Chairman. 25
Slide 26: Item 5: Appointment of auditor
Item 5 To consider and, if thought fit, pass the following non-binding resolution as an ordinary resolution: That, for the purposes of s327B of the Corporations Act, 2001 (Cth) and for all other purposes, KPMG having been nominated by a shareholder of the Company and consenting in writing to act in
Slide 27: Votes on item 5
Votes on item 5 Votes For* 99.85% Against 0.00% Open votes (other than Chairman) 0.14% Total votes 169,494,204 (69.31%) Abstain 118,213 Figures relate to proxy votes lodged up to 2:00pm AEST on 24 August 2021. * Votes in favour consist of direct and open proxies to the Chairman. 27 27
Slide 28: Item 6: FY21 STI performance rights for CEO
Item 6 To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is given for: (a) the issue to Mr John Alexander Malcolm, Chief Executive Officer and Managing Director, of 148,593
Slide 29: FY21 STI performance rights
FY21 STI performance rights Shareholder approval is • FY21 Company Performance Measures were set at: being sought for the – NOI (10%); – Underlying EBT (40%); granting of performance – Strategic Investments (10%) rights to Mr Malcolm – Enterprise Deals (20%) pursuant to Mr Malcolm’s – Leadership and
Slide 30: Votes on item 6
Votes on item 6 Votes For* 99.38% Against 0.49% Open votes (other than Chairman) 0.13% Total votes 169,312,905 (69.24%) Abstain 139,202 30 Figures relate to proxy votes lodged up to 2:00pm AEST on 24 August 2021. * Votes in favour consist of direct and open proxies to the Chairman. 30
Slide 31: Item 7: FY22 LTI performance rights for CEO
Item 7 To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of ASX Listing Rule 10.14, and for all other purposes, approval is given for: (a) the issue to Mr John Alexander Malcolm, Chief Executive Officer and Manging Director, of 506,228 p
Slide 32: FY22 Changes to LTI Plan
FY22 Changes to LTI Plan • Retired loan plan structure at end of FY21; no new FY22 LTI plan awards to be issued under this plan Amount • CEO LTI: 92% of TFR • Moved to issuing performance rights as equity instrument • Other KMP LTI: 40% of TFR for KMP • Maintained three-year performance period for L
Slide 33: FY22 LTI performance rights
FY22 LTI performance rights Performance rights are issued in 2 separate tranches with separate vesting conditions: Shareholder approval is being sought for the granting of performance rights Tranche Threshold Target Stretch to Mr Malcolm in respect of Mr Malcolm’s Tranche A (EPS): 50% of FY22 LTI Gr
Slide 34: FY22 Remuneration overview
FY22 Remuneration overview FY21 Metrics Remuneration FY22 Metrics Grant Year 1 Year 2 Year 3 Fixed remuneration STI STI STI CEO: 30% NOI 10% NOI Target 115% of TFR 30% EBITDA 40% Underlying EBT 50% cash, 50% deferred equity 20% Strategic investments 10% Strategic investments KMP: 20% Risk & ESG 20%
Slide 35: Votes on item 7
Votes on item 7 Votes For* 99.32% Against 0.55% Open votes (other than Chairman) 0.13% Total votes 169,313,353 (69.24%) Abstain 138,754 35 Figures relate to proxy votes lodged up to 2:00pm AEST on 24 August 2021. * Votes in favour consist of direct and open proxies to the Chairman. 35
Slide 36: Questions
Questions ?
Slide 37: Thank you
© OFX Thank you
Slide 38: Important notice and disclaimer
• The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 26 August 2021. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared wi