Ofx Group Ltd. · ASX:OFX
Ofx — Merger or Acquisition (December 2021)
14 slides from Ofx's merger presentation, Dec 20, 2021
Slide 1: OFX to acquire Firma Foreign Exchange Corporation
Investor Presentation OFX to acquire 100% of Canadian Corporate foreign exchange business Firma Foreign Exchange Corporation (Firma) 20-Dec-21 Confidential
Slide 2: Strategic acquisition that provides significant scale at attractive returns
Strategic acquisition that provides significant scale at attractive returns Accelerates growth in EPS accretive, value creation Funded via a combination Corporate and North America for OFX shareholders of debt and available cash • Firma is a global foreign exchange service • Consideration represents
Slide 3: Overview of Firma
1 Overview of Firma 2 Strategic Rationale 3 Financial Impact 4
Slide 4: Firma is a Corporate foreign exchange business based in Canada
Firma is a Corporate foreign exchange business based in Canada Business overview Geographic coverage by turnover Based in Edmonton, Canada, Firma has 190+ employees1 and operates from 9 offices in Canada, Australia, the UK & New Zealand ~9,600 active Corporate clients 80% 11% Strong management team
Slide 5: Firma is a c. A$50m revenue business generating attractive EBITDA margins
Firma is a c. A$50m revenue business generating attractive EBTIDA margins Firma financial profile In A$ millions, September YE Historic underinvestment in technology has limited growth, though provides 95% 88% significant opportunity for OFX to drive value through synergies Corporate Clients Spot Tr
Slide 6: Strategic Rationale
1 Overview of Firma 2 Strategic Rationale 3 Financial Impact 4
Slide 7: Accelerates OFX's mission to be a leading cross border payments specialist
Accelerates OFX’s mission to be a leading cross border payments specialist Transformative scale In line with OFX growth strategy A$5m+ synergies available1 Enhances OFX as a leading cross Accelerates growth in North Cost & revenue synergies deliver border payments specialist America and scale in Cor
Slide 8: Drives revenue weightings from Consumer to Corporate and A&NZ to Global
Drives revenue weightings from Consumer to Corporate and A&NZ to Global Segment1 OFX today OFX pro-forma Key highlights LTM Sep-21 Revenue: A$132.6m2 Pro-forma LTM Sep-21 Revenue: A$186.5m2 Online seller 6% Enterprise 4% Online seller 4% Enterprise 3% • Larger Corporate segment with a higher recurri
Slide 9: Financial Impact
1 Overview of Firma 2 Strategic Rationale 3 Financial Impact 4
Slide 10: Creating a more valuable company
Creating a more valuable company OFX combined will be one of the most profitable cross border payments companies (LTM EBITDA)1 Key highlights EBITDA EBITDA Margin 150.0 50.0 % 124.5 30% 30% 100.0 21% 25.0 % 14% 55.1 50.0 39.2 EBITDA Margin EBITDA (A$m) 10.9 0.9 • Strong cash flow generation 0.0 0.0
Slide 11: Funded using debt and existing cash, in-line with capital management strategy
Funded using debt and existing cash, in-line with capital management strategy Sources and uses Leverage profile Total sources $107.6 $107.6 Pro-Forma leverage profile and uses (A$m) Transaction costs $9.3 $7.6 Cash (Net Debt / EBITDA)1 • Interest on new debt expected to be A$3.32m in • OFX will fund
Slide 12: OFX business update
OFX business update Strategic acquisition that provides Upcoming significant scale at attractive returns releases • Accelerates growth in Corporate • Positive trends in 1H22 have continued and North America into 3Q, further update in January • EPS accretive, value creation • Investor day mid March f
Slide 13: Official Currency Exchange Provider of the NHL
Official Currency Exchange Provider of the NHL® NHL AND THE NHL SHIELD ARE REGISTERED TRADEMARKS OF THE NATIONAL HOCKEY LEAGUE. © NHL 2021. ALL RIGHTS RESERVED.
Slide 14: Thank you
Thank you This presentation for OFX Group Limited (Company) is designed to provide general background information about the Company and Firma Foreign Exchange Corporation (Firma), and the Company’s proposed acquisition of Firma. This information is current at 20 December 2021. It is provided in summ