Slide 1: 1H20 Financial Results
1H20 Financial Results Investor presentation 12 November 2019 1
Slide 2: Agenda
Agenda 1 1H20 Summary 2 1H20 Financial Results 3 FY20 Outlook 4 Q&A 5 Appendix 2
Slide 3: 1H20 Summary
1H20 Summary Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: Strong execution in a challenging environment
Strong execution in a challenging environment Continued improvement in fundamentals NOI • Revenue2 up 0.5%, strong momentum in North America & Corporate $59.5m (0.5)% • Transactions up 5.2% and transactions per active client3 up 9.3% • ATV’s down 9.3% increasing transaction costs as proportion of re
Slide 5: Strong business model: 2Q20 record quarter
Strong business model: 2Q20 record quarter Challenging global spot markets OFX quarterly NOI growth • Political uncertainty (Brexit, Trade wars) 13.0% 10.3% 4.2% 4.9% (3.4%) 2.3% • Business and consumer confidence down2, impacting inventory levels and spending, flowing through to ATV’s • Period of l
Slide 6: Strong fundamentals driving a more valuable company
Strong fundamentals driving a more valuable company Decline in active Corporate driving Strong growth in But decline in ATV Resulting in lower clients due to pivot strong activity transaction due to economic turnover to Corporate volumes uncertainty Transactions Active clients Transactions ATV Turno
Slide 7: Growing lifetime value with strong recurring revenue
Growing lifetime value with strong recurring revenue 40 Consumer revenue $m % new vs 35 returning client 30 25 revenue 20 15 10 5 0 1H19 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 2H19 2H20 New clients Active Clients at Returning clients1 30-Sep-19 154.0k Corporate revenue $m Down 3.0% from 30-SEP-18 R
Slide 8: Strong lead indicators, pivot in Asia
Strong lead indicators, pivot in Asia Europe Revenue Asia 2H18 1H19 2H19 1H20 North America Revenue Turnover (2.9)% Revenue Transactions + 8.5% 2H18 1H19 2H19 1H20 A&NZ Turnover (16.6)% 2H18 1H19 2H19 1H20 Revenue Transactions (24.5)% Turnover + 12.9% Transactions + 22.7% 2H18 1H19 2H19 1H20 Turnove
Slide 9: Strong momentum in North America
Strong momentum in North America Client experience • Improved website experience; registration completion rates up 20% 1H20 vs 1H19 • Continued improvement in NPS up 2 pts to 62 Revenue • Increased App usage now accounting for 30% of US transactions $15.1m $13.4m $12.6m $11.4m Corporate $10.7m • Gre
Slide 10: 1H20 Financial Results
1H20 Financial Results Selena Verth Chief Financial Officer
Slide 11: Disciplined execution
Disciplined execution Financial results 1H19 2H19 1H20 V% 1H19 • Good visibility and decisions delivering EBITDA growth Financial Metrics Fee and trading income ($m) 65.0 63.8 65.3 0.5% • Transactions up 5.2% (Consumer up 0.7%, Corporate up 12.0%) Net operating income ($m) 59.9 58.9 59.5 (0.5)% • Ac
Slide 12: Strong expense management
Strong expense management Underlying Operating Expenses 1 $m 1H19 2H19 1H20 V% 1H19 • Employee expenses up 0.4%, average FTEs up 3.6%, with revenue Employee expense (26.7) (23.7) (26.8) 0.4% generating FTEs up 6.1% Promotional expense (9.5) (8.0) (7.1) (25.1)% • Disciplined management of promotional
Slide 13: Infrastructure investment delivering
Infrastructure investment delivering Investments Impact • Consumer and Corporate • Global registration complete rates +40% vs 1H19, 90 Day onboarding clear to deal rate +84% Client • Global Currency Account • Global Currency Account active clients +79% experience • Pricing engine • Pricing program e
Slide 14: No debt, strong cash flow and high returns
No debt, strong cash flow and high returns $m 30-Sep-18 31-Mar-19 30-Sep-19 • Cash held for own use including deposits with financial institutions $51.5m Assets • Tax payments of $7.9m due to increase in instalments paid Cash held for own use 49.5 26.1 19.4 Deposits with financial institutions 17.1
Slide 15: FY20 Outlook
FY20 Outlook Skander Malcolm Chief Executive Officer and Managing Director
Slide 16: 2H20 – focus areas
2H20 – focus areas Growth Drivers Client Experience Geographic Expansion Partnerships • Substantially improve Corporate • Continued investment in North • Grow pipeline / win Enterprise client onboarding America • Grow GCA partnership programs • Deploy Corporate CRM • Continue Corporate growth in • L
Slide 17: FY20 summary outlook
FY20 summary outlook Build More Valuable Business Financial Commitments Grow Corporate clients Deliver annual positive operating leverage1 on an EBITDA basis Grow regionally Maintain stable NOI margin Win in Enterprise Invest Capex: expected to be $11m in FY20 including Link investment 1. Positive o
Slide 18: Questions
Questions 18
Slide 19: Appendix
Appendix ©or-x
Slide 20: Lower volatility in 1H20 vs 1H19
15bps -0.400% -0.300% -0.200% -0.100% 0.000% 0.100% 0.200% 0.300% (15bps) 1-Apr 4-Apr 7-Apr 10-Apr 13-Apr 16-Apr 19-Apr 22-Apr 25-Apr 28-Apr 1-May 4-May 7-May 10-May 13-May 16-May 19-May 22-May 25-May Lower volatility in 1H20 vs 1H19 28-May 31-May 3-Jun 6-Jun 9-Jun 12-Jun 15-Jun 18-Jun 21-Jun 1H19 2
Slide 21: 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 12 November 2019. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared wi