Ofx Group Ltd. · ASX:OFX
Ofx — Shareholder Meeting (August 2023)
36 slides from Ofx's shareholder meeting presentation, Aug 3, 2023
Slide 1: Annual General Meeting
Annual General Meeting 3 August 2023
Slide 2: Welcome
Welcome For technical support during the meeting call +61 2 8667 9160 2
Slide 3: Agenda
Agenda 1 Chair’s address 2 CEO and Managing Director’s address 3 Formal business 4 Q&A 5 Close For technical support during the meeting call +61 2 8667 9160 3
Slide 4: Chair's Address
Chair’s Address Patricia Cross Chair
Slide 5: CEO & Managing Director's Address
CEO & Managing Director’s Address Skander Malcolm Chief Executive Officer and Managing Director
Slide 6: Record year driven by great execution
Record year driven by great execution Outstanding financial outcomes ● Strong NOI driven by revenue growth in all regions, acquisition of Firma, and careful margin management $39.1bn $62.4m ● Record underlying EBITDA of $62.4m with underlying Underlying EBITDA EBITDA margin of 29.2% Turnover up 17.9
Slide 7: A strong 1H, 2H impacted by lower Consumer confidence
A strong 1H, 2H impacted by lower Consumer confidence Revenue $m OFX Group Corporate 104.5 105.8 ● Revenue growth of 10.7% on 1H23 with additional month of Firma volumes. Revenue growth was 4.5% ex Firma 80.4 ● ATV’s down 2.2% on 1H23 offset by 3.6% growth in transactions and a 5bp 68.9 71.3 increas
Slide 8: Building the world's leading cross-border payments specialist
Building the world’s leading cross-border payments specialist Huge opportunity Target segments Competitive positioning More valuable company Distinctive CVP Healthy revenue growth US$206bn1 cross-border payments market which keeps growing Corporate ++ + High recurring revenue Digital Human Strong EB
Slide 9: Generating value from B2B clients beyond spot FX
Generating value from B2B clients beyond spot FX OFX B2B portfolio revenue composition Today Future % total revenue Indicative Forwards Card and subscription 5%+ Grow active clients Forwards 20% Increase transactions per active Card and subscription client at a low marginal cost ~75% Spot Increase r
Slide 10: Benefit to shareholders through active capital management
Benefit to shareholders through active capital management 1 Initiate share buyback ● Commitment to generate value and return capital to shareholders ● 12-month program ● Sharing the upside of our strong cash flow generation ● On-market buyback ● Expected to be ROE and EPS accretive ● Up to 10% of sh
Slide 11: 1Q24 Update
1Q24 Update Skander Malcolm Chief Executive Officer and Managing Director
Slide 12: 1Q24: NOI up 25.5% v 1Q23 and 12.6% v 4Q23
1Q24: NOI up 25.5% v 1Q23 and 12.6% v 4Q23 OFX quarterly NOI 1Q24 Highlights v 1Q23 ● Revenue growth in all regions: 60.11 57.4 ● APAC up 6.1% 55.4 53.4 47.9 ● North America up 4.5% ● EMEA up 34.3% (8.5% ex Firma2) 39.0 39.4 35.6 ● Strong portfolio: 33.1 ● B2B revenue up 16.9% with Corporate up 19.3
Slide 13: Positive momentum into 2Q24
Positive momentum into 2Q24 Turnover ($bn) Fee & Trading Income ($m) Net Operating Income ($m) 10.3 9.9 59.9 58.3 57.7 60.11 9.6 9.5 55.2 57.4 55.4 9.3 53.4 51.0 47.9 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 FX Same Currency 1Q24 v 1Q23 1Q24 v 1Q23 1Q24 v 1Q23 (1.0)
Slide 14: Continued growth in B2B with strong B2C rebound
Continued growth in B2B with strong B2C rebound Revenue $m1 B2B B2C 37.5 36.3 35.0 34.8 1Q24 v 1Q23 1Q24 v 1Q23 29.8 16.9% 18.8 19.5 16.8 16.4 18.2 (3.1)% 1Q24 v 4Q23 1Q24 v 4Q23 (0.6)% 10.8% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 ● Softer April due to fewer trading days. Average daily ●
Slide 15: FY24 Outlook: expect to grow
FY24 Outlook: expect to grow FY24 Assumptions FY24 Expectations NOI Core Underlying EBITDA Global Corporate activity to trend Corporate growth in line with higher as interest rates approach historic CAGR. Enterprise steady $225m - $243m $63m - $74m peak growth Plus Paytron ~$1m1 Less Paytron ~$(4)m1
Slide 16: Formal business
Formal business 16
Slide 17: How to vote online
How to vote online If you have any issues v Call +61 2 8667 916 Step 1: Complete the voting card During the meeting, the Chair will indicate that the voting is open and the voting card will be shown. The voting card can be repositioned on your screen. 2. Item 2: Re-election of Mr Grant Murdoch There
Slide 18: How to ask questions online
How to ask questions online 18
Slide 19: Item 1 - Financial statements and Reports of the Directors and Auditors
Item 1 - Financial statements and Reports of the Directors and Auditors To receive and consider the Financial Report, the Directors’ Report and the Independent Auditor’s Report for the Company for the financial year ended 31 March 2023. There is no vote on this item. 19
Slide 20: Item 2 - Re-election of Mr Grant Murdoch
Item 2 - Re-election of Mr Grant Murdoch To consider and, if thought fit, pass the following resolution as an ordinary resolution: That Grant Murdoch, 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 Co
Slide 21: Item 2 - Re-election of Mr Grant Murdoch
Item 2 - Re-election of Mr Grant Murdoch Grant Murdoch MCom (Hons), FAICD, CAANZ Chair of the Audit, Risk and Compliance Committee; Member of the Nomination Committee Grant has over 36 years’ experience in accounting and corporate finance. Grant’s prior professional experience includes Head of Corpo
Slide 22: Votes on Item 2 - Re-election of Mr Grant Murdoch
Votes on Item 2 - Re-election of Mr Grant Murdoch Votes For* 97.72% Against 1.73% Open votes (other than the Chair) 0.55% Total votes 187,845,491 (76.25%) Abstain 60,416 Figures relate to proxy votes lodged up to 2:00pm AEST on 1 August 2023. * Votes in favour consist of direct and open proxies to t
Slide 23: Item 3 - Remuneration Report
Item 3 - Remuneration Report 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 financial year ended 31 March 2023 be adopted. This is a non-binding advisory vote. 23
Slide 24: Item 3 - Remuneration Report
Item 3 - Remuneration Report 1. Ms Verth’s awards also include remuneration of $18,807 in respect of 35,848 one-off performance rights that were granted on 30 July 2021 with a vesting date of 31 May 2023, and 21,916 one-off performance rights that were granted on 15 June 2022 with a vesting date of
Slide 25: Item 3 - Remuneration Report
Item 3 - Remuneration Report Short Term Incentive Scheme (STI) Long Term Incentive Scheme (LTI) FY23 Company STI metrics and weightings FY23 LTI plan performance measures Metric Weighting Performance measure Weighting Underlying NOI 30% Underlying EPS CAGR 50% Underlying EBT 30% Absolute TSR CAGR 50
Slide 26: Votes on Item 3 - Remuneration Report
Votes on Item 3 - Remuneration Report Votes For* 99.26% Against 0.49% Open votes (other than the Chair) 0.25% Total votes 186,737,430 (75.80%) Abstain 2,415 Figures relate to proxy votes lodged up to 2:00pm AEST on 1 August 2023. * Votes in favour consist of direct and open proxies to the Chair. 26
Slide 27: Item 4 - Ratification of the granting of performance rights
Item 4 - Ratification of the granting of performance rights To consider and, if thought fit, pass the following resolution as an ordinary resolution: That the granting of performance rights on or around 3 July 2023 for the issue of up to 11,250,000 ordinary shares by the Company in connection with i
Slide 28: Votes on Item 4 - Ratification of the granting of performance rights
Votes on Item 4 - Ratification of the granting of performance rights Votes For* 98.20% Against 1.26% Open votes (other than the Chair) 0.55% Total votes 187,905,492 (76.27%) Abstain 20,415 Figures relate to proxy votes lodged up to 2:00pm AEST on 1 August 2023. * Votes in favour consist of direct an
Slide 29: Item 5 - Issue of Short Term Performance Rights to Mr Malcolm
Item 5 - Issue of Short Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY23 Short Term Incentives To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of ASX Lis
Slide 30: Item 5 - FY23 STI performance rights
Item 5 - FY23 STI performance rights • FY23 Company Performance Measures were set at: Shareholder approval is – Underlying NOI (30%); being sought for the – Underlying EBIT (30%); granting of performance – Strategic Investments (20%); rights to Mr Malcolm – Risk and ESG (20%) pursuant to Mr Malcolm’
Slide 31: Votes on Item 5 - Short Term Performance Rights
Votes on Item 5 - Issue of Short Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY23 Short Term Incentives Votes For* 99.40% Against 0.35% Open votes (other than the Chair) 0.25% Total votes 187,022,892 (75.92%) Abstain 2
Slide 32: Item 6 - Issue of Long Term Performance Rights to Mr Malcolm
Item 6 - Issue of Long Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY24 Long Term Incentives To consider and, if thought fit, pass the following resolution as an ordinary resolution: That, for the purposes of ASX Listi
Slide 33: Item 6 - FY24 LTI performance rights
Item 6 - FY24 LTI performance rights Performance rights are issued in 2 separate tranches with separate vesting conditions: Tranche Threshold Target Stretch Shareholder approval is being sought for the granting of performance rights Tranche A (EPS): 50% of FY24 LTI Grant to Mr Malcolm in respect of
Slide 34: Votes on Item 6 - Long Term Performance Rights
Votes on Item 6 - Issue of Long Term Performance Rights to Mr John Alexander (‘Skander’) Malcolm under the OFX Group Limited Global Equity Plan in respect of FY24 Long Term Incentives Votes For* 99.35% Against 0.40% Open votes (other than the Chair) 0.25% Total votes 187,022,892 (75.92%) Abstain 2,9
Slide 35: Questions
Questions 35
Slide 36: Thank you
Thank you | 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 3 August 2023. Material is provided in summary only and does not purport to be complete. The material contained in this document has