Slide 1: FY16 Half Year Results Presentation
Commercial in confidence – Strictly private and confidential FY16 Half Year Results Presentation
Slide 2: Introduction
Commercial in confidence – Strictly private and confidential 01 INTRODUCTION
Slide 3: Agenda
Agenda Agenda Presenters • Introduction • Richard Kimber – Chief Executive Officer • 1H16 Results • Mark Ledsham – Chief Financial Officer • Accelerate Strategy update • Summary and Outlook 3
Slide 4: Accelerate Strategy on track
Accelerate Strategy on track Operational highlights • Investing for future growth with number of operational milestones achieved during the period ‒ Xero partnership ‒ Mobile transactional app launched ‒ Minimum deal size reduced to $250 implemented last week • Investments in People, Technology and
Slide 5: 1H16 Results
Commercial in confidence – Strictly private and confidential 02 1H16 RESULTS
Slide 6: 1H16 Results Key metrics
1H16 Results Key metrics • Record turnover in 1H16, up 34% to $10bn Financial summary 1H16 1H15 % change • Net operating income up 29% to $53.6 million Financial Metrics • Underlying EBTDA of $18.1 million, up 14% Turnover ($bn's) 10.0 7.5 34% • Operating Cash Flow to EBTDA in excess of Net Operatin
Slide 7: 1H16 Results
50,000 100,000 150,000 200,000 100,000 200,000 300,000 400,000 500,000 2HFY12 H2FY12 2HFY12 H1FY13 1HFY13 1HFY13 2HFY13 H2FY13 2HFY13 1HFY14 H1FY14 1HFY14 2HFY14 H2FY14 2HFY14 16% up on 1H15 17% up on 1H15 Transactions: 336k Active Clients: 151k 1HFY15 H1FY15 1HFY15 2HFY15 H2FY15 2HFY15 1HFY16 H1FY1
Slide 8: Satisfied repeat customer base
1H16 Results Satisfied repeat customer base OzForex’s customer base generates recurring revenues, with clients who first traded prior to FY10 still contributing material fee income and record revenue from new clients in 1H16 Fee 60 and Commission Income ($m's) 56.7 51.1 50 43.6 39.5 40 37.2 30 27.4
Slide 9: Net operating income
1H16 Results Net operating income Segment Net Operating Income Fee and Commission Income ($m's) $m 1H16 1H15 % change Australia and New Zealand 30.5 23.6 29% Europe 11.2 9.0 25% North America 8.7 5.6 57% 40% Asia 1.1 0.8 35% 42% Wholesale 5.8 5.0 15% 43% Fee and commission income 57.3 43.9 30% 44% 1
Slide 10: Operating expenses
1H16 Results Operating expenses Underlying Operating Expenses • Investments in People, Technology and Brand to deliver Underlying Constant currency5 future benefits: $m 1H16 1H15 % 1H15 % ‒ Group wide LTI and STI Scheme implemented in 2H15; change change Employee costs 1,2 20.7 15.6 32.6% 16.3 27.1%
Slide 11: Performance was strong across the Group
1H16 Results Performance was strong across the Group • Quality of client base demonstrated in momentum in top line earnings and growth in new markets • Continued growth in home market • Strong penetration into the US resulted in strong revenue growth in North America (key to Accelerate Strategy) • G
Slide 12: Balance sheet
1H16 Results Balance sheet • The Group remained debt free Group Balance Sheet $m 1H16 2H15 • Net cash1 (including term deposits) of $48.3 million as Assets at 30 September 2015 Cash and receivables from financial instituions 175.7 174.0 Derivative financial instruments 17.4 10.3 • The Group has incr
Slide 13: Strong cash flow generation
1H16 Results Strong cash flow generation • Strong operating cash flow conversion continues to be Strong operating cash flow generation1 and conversion2 a feature of the business 25 140% Operating Cash Flow ($m’s) Operating Cash Flow conversion (%) • 1H16 operating cash flow before tax and client lia
Slide 14: Accelerate Strategy Update
Commercial in confidence – Strictly private and confidential 03 ACCELERATE STRATEGY UPDATE
Slide 15: Growth opportunities
Growth opportunities Increase penetration Increase penetration Target adjacencies in Australian market in non-AUD 15
Slide 16: Core enablers supporting Accelerate Strategy
Core enablers supporting Accelerate Strategy People Technology Brand & marketing TAILORED GEOGRAPHIC CUSTOMER FOCUS MARKETING Progress: 16
Slide 17: Positioning for growth People progress
Positioning for growth People progress • Key Executive Team roles now in place with several new senior executives in place ‒ Appointment of new talent to Chief Technology Officer, Chief Operating Officer, and Head of People and Culture ‒ Additional Executive Team roles including Chief Marketing Offi
Slide 18: Positioning for growth Technology progress
Positioning for growth Technology progress • Chief Technology Officer, Craig Pendleton-Brown, who commences on 16 November 2015 • Customer driven improvements ‒ Refreshed web site offering contextual marketing, ‘omni-channel’ interactions and new languages ‒ Enhanced messaging infrastructure • Proce
Slide 19: Positioning for growth Brand and marketing progress
Positioning for growth Brand and marketing progress • Global launch of OFX brand on track by end of FY16 • Roll out and implementation of new brand on track to commence with Australia in December 2015, followed by the US and other geographies • Chief Marketing Officer developing plans, with global c
Slide 20: Summary and Outlook
Commercial in confidence – Strictly private and confidential 04 SUMMARY AND OUTLOOK
Slide 21: Summary and Outlook
Summary and Outlook • Strong result in 1H16 ‒ Record turnover in 1H16 of $10bn, up 34% on 1H15 ‒ Net Operating Income in 1H16 of $53.6m, up 29% on 1H15 ‒ 1H16 Underlying EPS of 5.1 cents per share for, up 12% on 1H15 ‒ Interim dividend increased to 3.6 cents per share fully franked • Reconfirm AGM g
Slide 22: Summary and Outlook
Summary and Outlook Look out for our OFX Australian website launch in December www.ofx.com 22
Slide 23: Important notice and disclaimer
Commercial in confidence – Strictly private and confidential The material contained in this document is a presentation of general information about the Company's activities current as at the date of this presentation (10 November 2015). It is provided in summary form and does not purport to be compl