Slide 1: FY14 Full Year Result
May 27, 2014 FY14 Full Year Result Chief Executive Officer – Neil Helm Chief Financial Officer – Mark Ledsham
Slide 2: Table of Contents
Table of Contents Section 1: OzForex Group Overview Section 2: Performance Highlights Section 3: Industry Observations Section 4: Moving Forward Section 4: Appendix This presentation reflects the financial performance and position of OzForex Limited (formerly OzForex Pty Ltd) (A.C.N. 092 375 703), w
Slide 3: 1. OzForex Group Overview
1. OzForex Group Overview
Slide 4: OzForex Group Overview
OzForex Group Overview • OzForex was founded in 1998 and has had a successful history of institutional and private equity investment prior to listing on the ASX on October 11, 2013 • Provides a comprehensive set of services to satisfy the international payment needs of consumers and businesses, and
Slide 5: OzForex Group Overview
OzForex Group Overview • Mission – “To make international payments simple” • Aspiration – “To be the leading provider of international payments and innovative payment solutions” • Competitive Advantage – Priced at a discount to incumbents and offers premium client service to both consumers and busin
Slide 6: 2. Performance Highlights
2. Performance Highlights
Slide 7: Financial performance exceeds prospectus forecast
Financial performance exceeds prospectus forecast • Net Operating Income was 6.1% ahead of pro forma prospectus forecast and 6.4% ahead on a statutory basis – Net Operating Income in FY14 increased by 39.1% to $72.5m • EBITDA was 4.3% ahead of pro forma prospectus forecast and 8.1% ahead on a statut
Slide 8: Strong growth in key metrics
Strong growth in key metrics • New Dealing Clients (NDCs) in FY14 increased by 38% to 55k but were below prospectus forecast by 10.8% • Active clients in FY14 increased by 31% to 120,500 – 2% below prospectus forecast, however retention of active clients has improved – 33% of FY14 revenue from clien
Slide 9: Operational highlights across the business
Operational highlights across the business • Increased mobile site visits under our FX brands by 292% to 3.4m • Increased our mobile site registration numbers under our FX brands by 175% to 8000 • Expanded our US License portfolio by 27 to 42 states with 6 applications pending • Added 3 new currenci
Slide 10: Strong growth in net operating income …
Strong growth in net operating income … Pro Forma Net Operating Income • Pro Forma Net Operating Income up by 39.1% to $72.5m in (A$m’s) FY14 and 6.1% ahead of pro forma prospectus forecast 72.5 • Repeat business from existing clients increasingly contributing to net operating income with 33% of FY1
Slide 11: … across all key regions
… across all key regions Actuals Growth • Core regions of ANZ and Europe $m FY11 FY12 FY13 FY14 FY13 FY14 continued to deliver strong growth Australia and New Zealand (ANZ) 22.1 24.7 29.5 40.7 19% 38% Europe 7.4 8.8 11.6 15.8 32% 37% • Ongoing investments in North North America 3.0 3.4 4.8 8.5 44% 7
Slide 12: Continued growth in active clients …
Continued growth in active clients … Active Clients • Active clients are the key business measure of growth (#000’s) reflect the number of clients that have transacted in the last 12 months 120.5 • Active clients growth was 31% to 120,500 in FY14 • This growth was driven by the performance in NDCs a
Slide 13: … has driven strong performance in key growth metrics
… has driven strong performance in key growth metrics (#000’s) Transactions • Transactions and transaction turnover in FY14 increased by 26% and 49% respectively • Average Transaction Value (ATV) growth primarily driven 581.1 by a change in regional mix and a weakening AUD 460.3 • On a normalised ba
Slide 14: Key growth metrics against prospectus impacted by NDC shortfall
Key growth metrics against prospectus impacted by NDC shortfall • NDCs increased by 38% in FY14 to 55k but were Key operating metrics FY14 Prospectus Variance below prospectus forecast by 10.8%* Pro forma net operating income 72.5 68.2 6.1% - IPS was 103% up from FY13 but 31% behind New dealing clie
Slide 15: Operating expenses increased to support current and future growth
Operating expenses increased to support current and future growth • Pro forma employee increased significantly on FY13 as expected given business growth with a 8.2% increase on forecast – Average FTEs were up 28% in FY14 to 180 although at period end; the total FTEs (196) was in line with expectatio
Slide 16: Reconciliation of underlying earnings
Reconciliation of underlying earnings A$000’s FY14 FY13 Growth Pro forma NPAT comparable to forecast 20.1 15.1 33.3% • Pro forma NPAT (pre one-off expenses) increased by Pro form NPAT margin 27.7% 29.0% 33.3% to $20.1m from FY13. Annualisation of ongoing IPO costs2 1.0 2.0 • Pro forma NPAT margin de
Slide 17: Balance sheet as at 31 March
Balance sheet as at 31 March ($Am) ASSETS FY14 FY13 • Gross cash position of the group increased to $148.8m Cash 148.8 92.1 - This includes funds received from clients yet to be settled as a Derivative financial instruments 8.6 3.6 result of timing of fund flows Other assets 3.6 1.0 Property, plant
Slide 18: Strong cash flow generation
Strong cash flow generation Free cash flow(1) and conversion(2) • Minimal capital requirement and significant operating leverage (A$m) • The high level of cash conversion in FY14 related to the 116% increased provisions for employee bonuses during the year ended 31 March 2014 yet to be distributed.
Slide 19: 3. Industry Observations
3. Industry Observations
Slide 20: Industry observations
Industry observations • International payment services is large and growing – Increases in global population and migration – Increased levels of cross border transactions and investment • Successful disruption from online and mobile which is rapidly growing – Increased online and mobile penetration
Slide 21: OzForex perspective
OzForex perspective • OzForex is well positioned to take advantage of this rapidly evolving industry – Scalable proprietary technology platform – Attractive customer value proposition – Multiple marketing channels with a strong focus on client service – Large portfolio of Tier 1 banking relationship
Slide 22: 4. Moving Forward
4. Moving Forward
Slide 23: Group strategy
Group strategy • Strategic Goals – Build a highly responsive, innovative and scalable operating model servicing our key client types – Expand our geographic footprint – Become the provider of choice for other companies or brands looking for international payment solutions for their clients • Strateg
Slide 24: Approach to growth
Approach to growth • Our focus is on growth in net operating income and EBTDA but still with the emphasis on cost containment and efficiency • We will continue to invest in people, opportunities and building out the IT and operational infrastructure. Current and future investments include: – Brand a
Slide 25: 5. Appendix
5. Appendix
Slide 26: OzForex Group Limited Executive Team
Group Executive OZFOREX GROUP LIMITED Chairman Peter Warne BIOARD Melinda Conrad Grant Murdoch William Allen Neil Helm OZFOREX GROUP LIMITED EXECUTIVE TEAM CEO Neil Helm COMPANY SECRETARY Linda Cox CHIEF COMMERCIAL HEAD OF HUMAN HEAD OF RISK AND CHIEF TECHNOLOGY CHIEF OPERATIONS CHIEF FINANCIAL OFFI
Slide 27: Reconciliation of Statutory to Pro forma
Reconciliation of Statutory to Pro forma Underlying Pro forma Pro forma $m FY11 FY12 FY13 Stat FY14 Adj. Adj. Variance FY14 FY14 forecast Net operating income 37.0 41.6 52.1 72.6 - 72.6 (0.1) 72.5 68.3 Other income - - - 12.7 (12.7)1 - - - - Total income 37.0 41.6 52.1 85.3 (12.7) 72.6 (0.1) 72.5 68
Slide 28: The material contained in this document is a presentation of general information about the
The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date of this presentation (13 February 2014). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purpos