Slide 1: Half year financial results FY18
Half year financial results FY18 Investor presentation 14 November 2017
Slide 2: Agenda
Agenda 1H18 summary Financial update Focus on execution Summary and outlook Q&A 2
Slide 3: 1H18 summary
1H18 summary Skander Malcolm Chief Executive Officer and Managing Director 33
Slide 4: 1H18 summary – performing in an adverse environment
1H18 summary – performing in an adverse environment Strong fundamentals Good execution NOI $53.6m Active clients 5.1% Great marketing driving registrations up 11.4% 160.1k EBTDA Transactions 12.2% North America revenue growth of 11.9% 470.2k $13.4m Transactions per active client Enhanced client expe
Slide 5: Financial update
Financial update Selena Verth Chief Financial Officer 5
Slide 6: Financial results
Financial results 1H17 2H17 1H18 v. 1H17 • Lead revenue indicators: Turnover ($b) 9.5 9.8 10.3 8.1% – Growth in registrations, active clients, transactions and turnover Net operating income ($m) 53.6 51.5 53.6 0.1% Cash operating expenses1 (38.6) (38.9) (38.0) (1.5%) • Spending where it matters: Tot
Slide 7: Lower volatility in 1H18 v. 1H17
Lower volatility in 1H18 v. 1H17 Daily % Movement AUD/USD (14 day moving average) 15bps AUD appreciation Movement 0 (15bps) AUD depreciation 14-May 07-May 21-May 28-May 20-August 04-June 11-June 18-June 25-June 02-July 02-April 09-April 16-April 23-April 30-April 06-August 13-August 27-August 09-Jul
Slide 8: Effective operational cost management
Effective operational cost management Operating expenses Jaws 1H18 v. 1H17 $m 1H17 2H17 1H18 v. 1H17 Employee expense (20.3) (22.5) (21.4) 5.3% Net operating income + 0.1% Promotional expense (9.3) (7.0) (7.7) (16.7%) Positive jaws Technology Infrastructure1 (2.0) (2.9) (2.6) 30.2% +1.6% Cash operat
Slide 9: Net cash growth of 8.2%
Net cash growth of 8.2% $m 30 Sep-16 31 Mar-17 30 Sep-17 Assets • Net cash $44.9m up 8.2% from $41.5m as at 30 September 2016 Net cash1 41.5 42.6 44.9 Cash and cash equivalents 129.4 148.5 157.4 • Interim dividend of 2.4c per share will be paid out of free cash flow Deposits with financial instituti
Slide 10: Focus on execution
Focus on execution Skander Malcolm Chief Executive Officer and Managing Director 10
Slide 11: Strong fundamentals
Strong fundamentals Continuing to grow Highest growth in Growth in ATV declined due to Overall client retention and active clients since transaction volumes change in portfolio mix… turnover growth engagement… 2H16… as a lead indicator of revenue… Transactions per active client Active Clients Transa
Slide 12: Global growth on track
Global growth on track Europe • Turnover -0.6% • Transactions +16.9% North America Asia • Turnover +20.0% • Turnover +69.8% • Transactions +25.8% • Transactions +87.9% A&NZ • Turnover +2.8% • Transactions +4.2% 12
Slide 13: Good progress in growing our Corporate business
Good progress in growing our Corporate business Corporate Revenue Clients Transactions Turnover Up 12.3% Up 23.0% Up 17.1% Revenue contribution New client revenue Corporate of >3yr clients Up 17.2% NPS 62 Up 9.7% 1H15 2H15 1H16 2H16 1H17 2H17 1H18 >3 years <3 years <2 years <1 year Corporate Transac
Slide 14: Personalised on-boarding journey
Building value propositions by segment, delivering a better client experience The Big Hello Ready to transfer OFX was the right call (reminder to transfer) Execution highlights Personalised on-boarding journey Automated US advertising campaigns drove client North American registration 34.5% journeys
Slide 15: Client experience highlights
Client experience highlights Our clients value us NPS • Fortnightly monitoring client NPS score • 61 • Agile monitoring means real time issue resolution All regions have an NPS of over 56 • 75% of respondents recommended to friends or family “I trust OFX and reliability is important to me” “the only
Slide 16: Summary and outlook
Summary and outlook Continuing to deliver on commitments • Grow active clients Grow revenue by • Grow transaction volume 2H18 focus areas driving fundamentals • Geographic expansion • CRM focus unlocking dormant client value • Use NPS to drive improvements • Continue momentum in Delivering a better
Slide 17: Q&A
Q&A 17
Slide 18: Level 19, 60 Margaret Street, Sydney NSW 2000 Australia. www.ofx.com
The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 14 November 2017. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared wi