Slide 1: FY21 Financial Results
FY21 Financial Results Investor presentation 18 May 2021
Slide 2: Agenda
Agenda 1 Good outcome with strong momentum 2 A valuable company 3 A more valuable future 4 Q&A 5 Appendix
Slide 3: Good outcome with strong momentum
Good outcome with strong momentum Skander Malcolm Chief Executive Officer and Managing Director
Slide 4: Strong rebound in 2H21 driving momentum
Strong rebound in 2H21 driving momentum Turnover ($bn) Net Operating Income ($m) Underlying EBITDA ($m) 13.1 13.8 65.6 64.0 59.5 21.7 11.5 11.2 53.9 19.6 16.5 10.8 1 1 1 1H20 2H20 1H21 2H21 1H20 2H20 1H21 2H21 1H20 2H20 1H21 2H21 2H21 up 22.9% v 1H21 2H21 up 18.7% v 1H21 2H21 up 82.2% v 1H21 $13.8bn
Slide 5: FY21 Highlights
FY21 Highlights Growth drivers Client Experience Geographic Expansion Partnerships • NPS score of 68.7, up from 66.8 • Obtained Electronic Money Institution licence • Won WiseTech Global, Pearler, from CBI (Ireland) for European expansion and Storfund • North America Corporate onboarding speed impro
Slide 6: Strategic pivot to Corporate & Online Seller segments
Strategic pivot to Corporate & Online Seller segments Strong and consistent Corporate Online Seller scaling quickly growth despite the pandemic Revenue $m Revenue $m CAGR CAGR 12% 23% 8.4 57.4 7.6 51.7 46.9 6.0 2.1 41.1 3.0 4.6 3.6 3.7 6.3 4.6 2.4 0.9 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Ex Asia
Slide 7: Consumer use cases impacted by COVID in 1H, 2H improving
Consumer use cases impacted by COVID in 1H, 2H improving Consistent growth pre COVID, 2H improving Consumer use cases negatively impacted by COVID Revenue $m • Holiday and travel CAGR • Emigration / immigration (2)% • Property investment and loan repayments 64.2 67.9 61.0 57.3 • Expat / salary trans
Slide 8: Strategic focus on Corporate and Online Seller segments driving scale
Strategic focus on Corporate and Online Seller segments driving scale Lower Consumer was offset by strong including unusual growth which skewed ATVs … resulting in turnover activity … Corporate and Online from offshore share growth. Seller activity … purchases … Active clients Transactions per Trans
Slide 9: All regions impacted by COVID, strongest rebounds in North America & A&NZ
All regions impacted by COVID, strongest rebounds in North America & A&NZ North America Asia Revenue Revenue 1H20 2H20 1H21 2H21 1H20 2H20 1H21 2H21 Turnover +8.5% Turnover (13.3)% Transactions +10.1% Transactions (4.7)% UK / Europe A&NZ Revenue Revenue 1H20 2H20 1H21 2H21 1H20 2H20 1H21 2H21 Turnov
Slide 10: A valuable company
A valuable company Selena Verth Chief Financial Officer
Slide 11: Solid financial outcome after soft 1H21
Solid financial outcome after soft 1H21 Financial results FY20 FY21 V% • Strong 2H up 18.0% v 1H21, FY21 revenue down 2.2% Financial Metrics Fee and trading income (revenue) ($m) 137.2 134.2 (2.2)% • NOI down 5.8% driven by reduction in consumer activity post COVID offset by Net operating income ($m
Slide 12: Disciplined expense management and substantial reduction in bad debts
Disciplined expense management and substantial reduction in bad debts $m FY20 FY21 V% Underlying operating expenses Employee expense 53.4 57.0 6.8% • Employee expenses up 6.8% while investing in growth and client experience Promotional expense 13.6 12.8 (6.2)% • Continued focus on brand in market th
Slide 13: Strong balance sheet, good cash flow
Strong balance sheet, good cash flow $m 31 Mar 20 31 Mar 21 Balance Sheet • Net cash held $60.6m, down $0.4m, Net Available Cash $36.8m up $12.3m Cash held for own use 28.8 33.5 • Strong cash generation; $30.4m underlying EBITDA delivering Deposits due from financial institutions 32.3 27.1 $27.9m ne
Slide 14: Implementing an efficient capital management strategy
Implementing an efficient capital management strategy On-market share buy-back program to replace OFX dividend in the near term $m 31 Mar 21 Cash held for own use 33.5 • An on-market buy-back provides capital flexibility, which allows OFX to respond quickly to emerging growth opportunities Deposits
Slide 15: A more valuable future
A more valuable future Skander Malcolm Chief Executive Officer and Managing Director
Slide 16: Building the world's leading value-added cross border payments specialist
Building the world’s leading value-added cross border payments specialist ` Opportunity Grow valuable segments Competitive Positioning More valuable company 130T USD cross-border Distinctive CVP payments market High Value Consumer + ✓ Healthy revenue growth + ✓ 75%+ recurring revenue OFX is a cross
Slide 17: Targeting most valuable opportunities in a large market
Targeting most valuable opportunities in a large market Large total market High growth use cases Valuable segments Global cross-border payments flows Size of payments flows in $Bn and identified growth tailwinds OFX target segments $130T Individual remittance to individual >75% consumers would (excl
Slide 18: Growth through being distinctive to our target segments
Growth through being distinctive to our target segments High Value Consumer Corporate Online Seller Enterprise Segments we target Typical ATVs of ~$17.1k Typical ATVs of ~$26.4k Typical ATVs of ~$17.0k B2B2C and biannual+ trading monthly+ trading weekly+ trading B2B2B Must Haves Fast, competitive, a
Slide 19: Enterprise pipeline
Growing Enterprise pipeline1 & activating the strategic alliances won Prospect meetings • Enterprise pipeline strengthening globally with each Enterprise pipeline region representing one third of pipeline • Use cases include Qualify (28 prospects) • wealth • payroll • financial institutions • Govern
Slide 20: Sustainable capital investment in our Global Operating Model
Sustainable capital investment in our Global Operating Model Projected intangible investments $m 12.6 Payments 12.0 excellence 10.3 9.3 9.0 7.8 Single global platform Risk Customer management Service World class team FY19 FY20 FY21 FY22E FY23E FY24E FY21 Delivery FY22+ ✓ API’s, Global Currency Accou
Slide 21: Investment in TreasurUp will accelerate OFX's Corporate growth strategy
Investment in TreasurUp will accelerate OFX’s Corporate growth strategy ✓ Accelerate OFX Corporate growth with risk management proposition ✓ Founded in 2016 as part of Rabobank innovation campaign. ✓ Enhance OFX Enterprise opportunities & Headquartered in the Netherlands provide Online Seller micro
Slide 22: FY22 outlook
FY22 outlook Focus on strategic priorities Deliver strong results • Continue to grow North America • Maintain principle of positive operating leverage1 while remaining flexible to pursue investment opportunities • Strong growth in Corporate and Online Seller segments • Continue investment in a singl
Slide 23: Questions
Questions ?
Slide 24: Appendix
© OFX Appendix
Slide 25: Attractive Recurring Revenue
Attractive Recurring Revenue Revenue from Existing Clients 79% Increase from 76% in FY20 40 Consumer Revenue $m Corporate Revenue $m OLS Revenue $m 35 40 5 35 30 4 30 25 25 3 20 20 15 2 15 10 10 1 5 5 0 0 0 1H17 2H21 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 2H17 1H18 2H18 1H19 2H19 1H20 2H2
Slide 26: Higher volatility however Consumer impacted by COVID
Higher volatility however Consumer impacted by COVID OFX quarterly NOI growth 14 day moving average of daily % movement (8.4)% in spot price (AUD/USD)1 4.2% (4.7)% (14.4)% 1Q20 1Q21 2Q20 2Q21 3Q20 3Q21 4Q20 4Q21 OFX comparable period OFX current period Market growth1 (9.2%) (7.5%) 7.7% (15.3%) • Vol
Slide 27: 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 • Cost per Registration: Promotional expense / registr
Slide 28: Thank you
Thank you The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 18 May 2021. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepar