Slide 1: 1H23 Financial Results
1H23 Financial Results 8 November 2022
Slide 2: Agenda
Agenda 1 Performance 2 Financials 3 Strategy & FY23 Outlook 4 Q&A 5 Appendix 3
Slide 3: Performance
Performance Skander Malcolm Chief Executive Officer and Managing Director 4
Slide 4: NOI and margin growth driving record EBITDA
NOI and margin growth driving record EBITDA Outstanding financial outcomes • NOI of $105.3m, up 53.4%, driven by revenue growth in all regions, $19.9bn $32.3m acquisition of Firma, margin management, and continued discipline on Turnover up 32.6% bank fees and commissions Underlying EBITDA up with AT
Slide 5: Outstanding Firma result, integration on track
Outstanding Firma result, integration on track Fee and Trading Income Integration highlights AUD $m, September YE 1,2 3 68.2 • Voluntary attrition in sales down in L12TM v PCP 49.2 49.9 49.3 51.9 • Excellent engagement across Senior Leadership People Teams • Completed product and feature gap analysi
Slide 6: Firma adding to strong growth
Firma adding to strong growth Turnover ($bn) Net Operating Income ($m) Underlying EBITDA ($m) 19.9 105.3 32.3 18.2 15.0 78.4 24.2 13.8 68.6 20.3 64.0 19.6 11.2 53.9 10.8 1H21 2H21 1H22 2H22 1H23 1H21 2H21 1H22 2H22 1H23 1H21 2H21 1H22 2H22 1H23 1H23 up 32.6% v 1H22 1H23 up 53.4% v 1H22 1H23 up 59.4%
Slide 7: Growing a valuable portfolio
Growing a valuable portfolio Revenue $m Corporate High Value Consumer Online Seller Enterprise 59.2 36.9 38.3 35.9 34.4 31.8 29.8 30.5 25.7 26.9 4.1 4.2 4.1 4.5 4.2 2.5 2.9 3.1 2.9 2.1 1H21 2H21 1H22 2H22 1H23 1H21 2H21 1H22 2H22 1H23 1H21 2H21 1H22 2H22 1H23 1H21 2H21 1H22 2H22 1H23 1H23 v 1H22 1H2
Slide 8: Excellent revenue growth across all regions
Excellent revenue growth across all regions Revenue $m APAC North America EMEA 44.6 45.0 44.9 39.7 39.1 34.4 20.7 22.4 18.3 13.4 14.6 15.4 11.5 10.9 8.9 1H21 2H21 1H22 2H22 1H23 1H21 2H21 1H22 2H22 1H23 1H21 2H21 1H22 2H22 1H23 Corporate Consumer OLS Enterprise Corporate Consumer OLS Enterprise Corp
Slide 9: Corporate performing exceptionally well
Corporate performing exceptionally well Revenue • Diverse portfolio across multiple industries with the largest exposures, based on revenue contribution, in service industries +98.2% v 1H22 34%, manufacturing 17% and wholesale trade 15%1 • Investing in tools to generate frontline capacity and Salesf
Slide 10: High Value Consumer benefitting from volatility
High Value Consumer benefitting from volatility Revenue • Steady mix of high value use cases with the largest revenue +11.3% v 1H22 growth in salary transfers up 16% and mortgage payments up 9% v 1H22 38.3 • Improved technologies for customer onboarding and customer 36.9 34.4 management 30.5 North A
Slide 11: Online Seller improving, ex Asia
Online Seller improving, ex Asia Revenue • Industry growing however supply chain challenges are +0.6% v 1H22 impacting revenue performance +6.9% Ex Asia • Continued investment in platform, launched JPY and PLN currencies 4.1 4.2 4.1 4.5 4.2 North America +12.3% • ATVs up 2.7% to $16.1k v 1H22 EMEA +
Slide 12: Enterprise activation slow, but pipeline growing
Enterprise activation slow, but pipeline growing Revenue of $2.9m in 1H23 • Grew prospects from 48 to 71, with particular strength in EMEA (1.6)% v 1H22 and North America • Pipeline shifting to small and mid-size prospects Enterprise Pipeline1 • Won first Enterprise deal in Asia, launched in 2Q23 an
Slide 13: Growth in all underlying metrics resulting in record turnover
Growth in all underlying metrics resulting in record turnover Active clients Transactions per active client Transactions ATV Turnover 152.6k 670.7k $29.6k $19.9bn OFX Group1 8.3 8.2% up from 30-Sep-21 14.9% down from 1H22, 15.8% up on 1H22 14.5% up on 1H22 32.6% up on 1H22 6.7% up from 31-Mar-22 Cor
Slide 14: Strong margin management
Strong margin management NOI Margin NOI Margin walk 0.70% 0.04% 0.53% 0.04% 0.01% 0.01% 0.65% 0.62% 0.43% 0.60% 0.55% 0.53% 0.50% 0.45% 0.40% 1H21 2H21 1H22 2H22 1H23 2H22 Pricing Interest & other Treasury Firma 1H23 Income Revenue NOI margin NOI margin (ex same currency) 15
Slide 15: Financials
Financials Selena Verth Chief Financial Officer 16
Slide 16: Record financial result driven by growth across the portfolio
Record financial result driven by growth across the portfolio Financial results 1H22 2H22 1H23 V 1H22 • Fee and trading income up 49.9% (13.2% ex Firma) with strength across all regions Financial metrics ($m) Fee and trading income (revenue) 74.0 84.1 110.9 49.9% • NOI up 53.4% driven by revenue gro
Slide 17: Continuing to invest for growth
Continuing to invest for growth Underlying operating expenses • Employee expenses up 57.1%, 20.3% ex Firma. Overall FTE 712, 1H22 2H22 1H23 V 1H22 ($m) up 308 v 1H22, driven by Firma +174, technology resources +54 Employee expenses 31.6 34.9 49.7 57.1% and sales and marketing +40 Promotional expense
Slide 18: Strong balance sheet, good cash flow
Strong balance sheet, good cash flow Balance Sheet ($m) 30 Sep 21 31 Mar 22 30 Sep 22 • Net cash held $92.9m, up $8.7m from 2H22. Net available cash Cash held for own use 40.9 59.1 67.2 $43.9m Cash held for settlement of client liabilities 236.2 242.8 356.0 • $32.3m underlying EBITDA delivering $20.
Slide 19: Continued investment in our global operating model
Continued investment in our global operating model Intangible investments $m Payments Excellence – Fast, transparent & trackable payments 6.8% - 7.5% • Two additional currencies added to our Global Currency 6.7% 6.6% Account product 15.0 – 17.0 6.1% 5.8% • Payments infrastructure - increased automat
Slide 20: Strategy & FY23 Outlook
Strategy & FY23 Outlook Skander Malcolm Chief Executive Officer and Managing Director 21
Slide 21: Building the world's leading value-added cross border payments specialist
Building the world’s leading value-added cross border payments specialist Huge opportunity Target segments Competitive positioning More valuable company Distinctive CVP US$211bn cross-border payments Corporate Healthy revenue growth market which keeps growing1 80%+ Recurring Revenue Digital Human 72
Slide 22: OFX well positioned to win in the new economic cycle
OFX well positioned to win in the new economic cycle Shifting landscape Improving competitive positioning of OFX • Profitable – 25-30% EBITDA margin through the cycle. Margin management creates 40-year high NEW INFLATIONARY ERA high interest rates and VALUE ADDED capabilities to maintain and grow NO
Slide 23: A mature and integrated risk management program
A mature and integrated risk management program Partners Clients Tier 1 Banks Defined client segments Enterprise partners Channels Geographies Risk Management Local license & regulatory obligations Human service Culture Payments to high-risk countries Digital protection Strong local and global gover
Slide 24: FY23 Outlook
FY23 Outlook FY23 guidance upgraded to reflect strong performance Potential tailwinds • FX volatility ATV / transactions • High Inflation ATV / margin NOI (including Firma) Underlying EBITDA • Lower AUD/USD revenue $215m - $222m $62m - $67m Up from $200m - $212m Up from $55m - $60m Potential h
Slide 25: OFX is the official currency exchange partner of the URC
OFX is the official currency exchange partner of the URC 26
Slide 26: Appendix
Orx Appendix
Slide 27: Key Metrics for OFX Group
Key Metrics for OFX Group OFX Group OFX Firma OFX Group OFX Firma Key Metrics Financial Results Turnover ($bn) 19.9 16.3 3.6 Net Operating Income ($m) 105.3 78.6 26.7 - FX 16.7 13.5 3.3 - Same currency 3.1 2.8 0.3 NOI Margin 0.53% 0.48% 0.74% Fee and trading income ($m) 110.9 83.7 27.2 - Revenue 104
Slide 28: Attractive Recurring Revenue
Attractive Recurring Revenue Revenue from Existing Clients 82% increase from 77% in 1H22 87% 75% 80% Corporate Revenue $m High Value Consumer Revenue $m Online Seller Revenue $m 60 40 5 35 50 4 30 40 25 3 30 20 15 2 20 10 1 10 5 0 0 0 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 2H22 1H23
Slide 29: Strong quarter on quarter NOI growth
Strong quarter on quarter NOI growth OFX quarterly NOI growth 14 day moving average of daily % movement in spot price (AUD/USD) 2 70.0 61.3% 60.0% 60.0 44.7% 50.0 24.5% 40.0% 20.6% 40.0 20.0% 30.0 0.0% 20.0 10.0 -20.0% - -40.0% 3Q21 3Q22 4Q21 4Q22 1Q22 1Q23 2Q22 2Q23 Market 4.0% 12.2% 18.0% 16.5% gr
Slide 30: Definitions
Definitions • Active Client: Number of clients that entered into a Transaction with OFX during the immediately preceding 12-month period • ATV: Average transaction value • Corporate: As of 1H21, Corporate excludes OLS; OLS is reported separately • Enterprise: International Payment Solutions in the s
Slide 31: 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 8 November 2022. Material is provided in summary only and does not purport to be complete. The material contained in this document