Ofx Group Ltd. · ASX:OFX
Ofx — H1 FY2015 Earnings Presentation
25 slides from Ofx's earnings presentation, Nov 25, 2014
Slide 1: FY15 Half Year Result
For personal use only 25 November 2014 FY15 Half Year Result Chief Executive Officer – Neil Helm Chief Financial Officer – Mark Ledsham Chief Commercial Officer - Simon Griffin AGM FY15 Result 1H15 Result 6 August May 2015 2014 25 November 2014
Slide 2: Executive Summary
Executive Summary For personal use only • Pro forma EBTDA 1H15 $17.2 million up 28% over 1H14 (on 19% increase in Net Operating Income to $41.6m) • Interim EPS of 4.99c per share for 1H15, up 19% on 1H14 and fully franked interim dividend of 3.5c per share (70% dividend payout ratio) • Strong underl
Slide 3: Contents
For personal use only Contents 1. Highlights - FY15 Half Year 2. Highlights - Prospectus Period 3. Growth Strategy 4. Summary and Outlook Prospectus Period (October 2013 to September 2014) 1st 2nd 3rd 4th 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter FY14 (April 201
Slide 4: Performance - 1H15
For personal use only Performance - FY15 Half Year (1H15) FY15 Half Year 1st 2nd 3rd 4th 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Slide 5: Key metrics
FY15 Half Year - Key metrics For personal use only • The 1H15 result delivered strong growth on 1H14 across key financial and operational metrics 1H15 1H14 Growth Financial Metrics 1 Turnover $7.5bn $6.6bn 14% Net Operating Income 2 $41.6m $35.0m 19% Expenses 2 $24.4m $21.6m 13% Pro Forma EBTDA $17.
Slide 6: Active Clients
FY15 Half Year - Active Clients For personal use only Active Client growth has … on the back of strong … and modest growth in continued … growth in Existing Clients … NDCs relative to 1H14. Active Clients Existing Clients1 New Dealing Clients 130k 101k 29k 21% up on 1H14 28% up on 1H14 4% up on 1H14
Slide 7: Operational Metrics
FY15 Half Year – Operational Metrics For personal use only Transaction numbers have … combined with a slightly … continued growth in increased in line with Active lower ATV has driven … turnover in 1H15. Client growth which … Transactions ATV Turnover 336K $22.3K $7.5b 18% up on 1H14 3% down on 1H14
Slide 8: Financial Metrics
FY15 Half Year – Financial Metrics For personal use only Improvements in gross Improvements in pro-forma … which has delivered strong margin delivered Net EBTDA margin has delivered growth in NPAT on 1H14 and Operating Income growth strong EBTDA growth … continues the historical ahead of turnover gr
Slide 9: Net operating income
FY15 Half Year - Net operating income For personal use only • All segments performed well delivering 19% fee Segment Actuals Growth $m 1H15 1H14 1H15 and commission income growth Australia and New Zealand1 23.6 20.5 15% – Strong US growth helped the North American region Europe 8.9 7.5 19% deliver 4
Slide 10: Strong client retention outcome
Strong client retention outcome For personal use only • Retention drives client lifetime value and adds operating leverage • Percentage of fee and commission income attributable to clients older than 3 years continues to increase Fee and commission income from clients older than 3 years (rhs) and pe
Slide 11: Operating Expenses
FY15 Half Year - Operating Expenses For personal use only • Increased expenditure incurred to support Pro forma Pro forma $m FY14 Variance growth 1HFY15 1HFY141 Employee costs 14.2 11.8 20% • Notwithstanding this investment, pro forma Promotional costs 5.8 5.3 9% EBTDA margin improved from 38.3% to
Slide 12: Reconciliation of underlying earnings
FY15 Half Year - Reconciliation of underlying earnings For personal use only A$000’s 1HFY15 1HFY14 Growth • Pro forma NPAT increased by 25% to $12.0m Statutory EBTDA 17.2 13.2 30.3% from 1H14 (as adjusted for items detailed in Statutory EBTDA margin 41.3% 37.6% table) Annualisation of ongoing IPO co
Slide 13: Balance sheet as at September 2014
FY15 Half Year - Balance sheet as at 30 September 2014 ($Am) For personal use only • The cash position net of client liabilities was up ASSETS 1H15 FY14 24% to $50.7m (pre dividend) from $41m at 31 Cash 156.8 148.8 March 14 Derivative financial instruments 10.4 8.6 Other assets 2.6 3.6 • The balance
Slide 14: Strong cash flow generation
FY15 Half Year - Strong cash flow generation For personal use only Free cash flow(1) and conversion(2) • Strong free cash flow conversion continues to be 25 140% Millions a feature of the business • $20.7m Operating cash flow before tax and client 120% 20 liabilities 100% • Free cash flow to EBTDA r
Slide 15: Highlights – Prospectus Period
For personal use only Highlights – Prospectus Period Prospectus Period (October 2013 to September 2014) 1st 2nd 3rd 4th 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Slide 16: Prospectus Period Performance – Key Metrics
Prospectus Period Performance – Key Metrics For personal use only • Due to very strong growth in the 12 months to September 2014, we met our financial metrics for the prospectus period 6 months to 12 months to Growth on PCP Variance to Prospectus September 14 September 14 (12 months to 1H15 (Prospec
Slide 17: Growth Strategy
For personal use only Growth Strategy including North America and IPS highlights
Slide 18: Industry Trends - International Payment Specialists
Industry Trends - International Payment Specialists For personal use only • International Payments Specialists operate in fast growing industry segment – Provide solutions to businesses and consumers with international payment needs – Disrupting the offerings of traditional banks by leveraging techn
Slide 19: Strategic Goals
Strategic Goals For personal use only • In the short to medium term we have clear growth strategies that support our aspiration to be a leading provider of international payments – Continue to drive scale in our core business – Leverage our position in our chosen geographies – Drive further market p
Slide 20: North America
North America For personal use only Active Clients Market Overview H1 FY15 Achievements 14.4k • OzForex presence: USA - 2 years, Canada - 7+ • EBTDA margins in North America improved from years 3% to 11% with US business now profitable 56% up on 1H14 • Maturity of non-bank international payments • E
Slide 21: International Payment Solutions
International Payment Solutions For personal use only Active Clients H1 FY15 Achievements Market Overview 13.2k • New partnership signed with Richardson GMP in • Present in wholesale market: 7 years 25% up on 1H14 Canada • Key partnerships: Macquarie, ING Direct, Travelex, • LOI signed with Yodlee t
Slide 22: Capability platform improvements
Capability platform improvements For personal use only • In the medium to long term we are improving our capability platform with a focus on: – Scalability, flexibility and speed to market – Customer acquisition, service and retention Focus Areas Initiatives Outcomes Timeframes Software Development
Slide 23: Summary and Outlook
For personal use only Summary and Outlook
Slide 24: Summary and Outlook
Summary and Outlook For personal use only • Pro forma EBTDA 1H15 $17.2 million up 28% over 1H14 (on 19% increase in Net Operating Income to $41.6m) • Interim EPS of 4.99c per share for 1H15, up 19% on 1H14 and fully franked interim dividend of 3.5c per share (70% dividend payout ratio) • Strong unde
Slide 25: For personal use only
For personal use only The material contained in this document is a presentation of general information about the ASX Group’s activities current as at the date of this presentation (25 November 2014). It is provided in summary and does not purport to be complete. You should not rely upon it as advice