Slide 1: Half Year Results 2014
Half Year Results 2014 20 November 2013 Chief Executive Officer – Neil Helm Chief Financial Officer – Mark Ledsham
Slide 2: Overview OzForex Group
Overview OzForex Group • This presentation reflects the financial performance and position of OzForex Limited (formerly OzForex Pty Ltd) (A.C.N. 092 375 703), which was the head of the OzForex Group prior to the interposition of OzForex Group Limited, and the subsequent capital raising, which occurr
Slide 3: Operational Highlights
Operational Highlights • Increased licensing footprint in the US from 16 states Global footprint to 32 - now servicing 75% of the US population, up from 38% at 30 September 2012 • North American revenue increased from 9% of total fee and commission income before hedging and transaction costs in 1H13
Slide 4: Agenda
Agenda I. Performance update 5 II. Operating and Financial metrics 9 III. Summary 15 IV. Appendices 18 4
Slide 5: I. Performance Update
I. PERFORMANCE UPDATE
Slide 6: Investment highlights
Investment highlights • Key operating and financial metrics are in line with prospectus forecasts resulting in a NPAT positive variance of 7% • Net operating income up by 41.8% to $35.1m in 1H14, compared to 1H13 • Active clients are in line with the prospectus forecast at 107,000 for pro forma 6 mo
Slide 7: Performance Summary
Performance Summary Pro forma Actual Prospectus 6 months 6 months 1H14(4) 1H14 Variance Key financial metrics Net operating income ($m) 35.1 33.2 6% EBTDA ($m) 13.4 13.1 3% NPAT ($m) 9.6 9.0 7% Net operating income growth 41.8% EBTDA growth 10.0% EBTDA margin(3) 38.2% 39.5% (3.2%) NPAT growth 13.7%
Slide 8: Profit growth in line with plan
Profit growth in line with plan • Continued growth in 1H14 EBTDA o 29% increase in active clients to 107k (A$m) 13.4 o 10% increase in EBTDA to $13.4m 12.2 o 14% increase in NPAT to $9.6m 8.7 o EBTDA for 1H13 included a one off benefit from an historic GST claim of $0.8m, and 1H14 includes $1.0m of
Slide 9: II. Operating and Financial Metrics
II. OPERATING AND FINANCIAL METRICS
Slide 10: Growth strategy driving increase in active clients
Growth strategy driving increase in active clients • Active clients are clients that have transacted with Active clients the Group in the previous 12 months (# 000s) 107.0 • Active clients are in line with forecast as at 30 September 2013 • Increase in active clients has been driven by 82.7 o Contin
Slide 11: Strong momentum in turnover
Strong momentum in turnover • Growth in clients delivering increased transactions Transactions and turnover (# 000s) 285.3 • 1H14 transactions per active client continued to be 224.5 2.7 during the 6 month period, with a slight 185.6 improvement to the level of retention • Growth in US where average
Slide 12: Growth in net fee and commission income
Growth in net fee and commission income • Net fee and commission income increased by 44.2% Net fee and commission income to $34.3m in 1H14 (A$m) • Driven by 34.3 o Build out of IPS through new branded partnerships with Travelex and MoneyGram o US revenue growth mirroring growth in licence footprint
Slide 13: Summary geographic net fee and commission income
Summary geographic net fee and commission income Historical 6 months 6 months 6 months $m 1H12 1H13 1H14 Geography Australia and New Zealand 11.9 14.5 19.9 Europe 4.2 5.6 7.5 North America 1.7 2.1 4.0 Asia 0.3 0.4 0.7 Other geographies 0.3 0.5 0.7 International payment solutions 2.4 2.8 4.3 Income b
Slide 14: Key operating and financial metrics
Key operating and financial metrics Historical 6 months 6 months 6 months 1H12 1H13 1H14(4) Key financial metrics Net operating income growth 26.10% 41.81% EBTDA growth 39.95% 10.00% EBTDA margin(3) 45.25% 45.88% 38.24% NPAT growth 48.98% 13.66% NPAT margin(3) 39.18% 28.95% 27.41% Key operating metr
Slide 15: III. Summary
III. Summary
Slide 16: Group Strategy – key initiatives
Group Strategy – 3 key initiatives • Continuous improvement in OzForex’s core business model o Drive client online registration to increase conversion rates and improve overall customer service o Use and expand the functionality across mobile services, tablets and apps to grow transaction volumes •
Slide 17: Summary
Summary • Key operating and financial metrics are in line with prospectus forecasts resulting in a NPAT positive variance of 7% • Net operating income up by 41.8% to $35.1m in 1H14, compared to 1H13 • Active clients are in line with the prospectus forecast at 107,000 for pro forma 6 months 1H14 • Gr
Slide 18: IV. Appendices
IV. APPENDICES
Slide 19: Income statements
Income statements Statutory Pro-forma 6 months 6 months 6 months 6 months $m 1H12 1H13 1H14 adjustments 1H14 Net fee and commission income 18.7 23.8 34.3 - 34.3 Other income - - 26.5 (26.5) - Net interest income 0.9 1.0 0.8 - 0.8 Net operating income 19.6 24.8 61.6 (26.5) 35.1 Employee costs (6.2) (
Slide 20: Balance Sheet
Balance Sheet Pro Forma Balance sheet (as at 30 September 2013) (A$m) Assets Cash and cash equivalents 127.1 Derivative financial instruments 9.4 Other assets 2.6 Property, plant and equipment 1.0 Deferred income tax assets 1.0 Total assets 141.1 Liabilities Client liabilities (94.9) Other liabiliti
Slide 21: V. Q&A
V. Q&A