Slide 1: Financial Year 2016 Results
Financial Year 2016 Results 17 May 2016
Slide 2: Agenda
Agenda CEO update Financial update Outlook Strategy Update Q&A
Slide 3: CEO Update
CEO Update Richard Kimber Chief Executive Officer
Slide 4: Delivering on the Accelerate Strategy
Delivering on the Accelerate Strategy “A 3 year ACCELERATE strategy” Our investments over FY16 position OFX to achieve $200m revenue by FY19, with accelerated earnings growth. Core Enablers People Technology Brand & Marketing • Appointment of new CEO • Cloud based platform • Launch of OFX brand • Ex
Slide 5: Financial Update
Financial Update Mark Ledsham Chief Financial Officer
Slide 6: FY16 Underlying Results
FY16 Underlying Results • Double digit revenue growth FY16 FY15 Growth - Driven by growth in transactions Financial Metrics - Increasing percentage of active clients are corporate - Strong performance in robust existing client base Turnover ($bn's) 19.6 16.6 18% - Good growth in client acquisition d
Slide 7: Key Client Metrics Reflect Strong Underlying Customer Base
Key Client Metrics Reflect Strong Underlying Customer Base Continued growth in active clients, Transactions Resulting with strong growth in existing grew faster than in turnover increasing client cohort base active clients to nearly $20bn Corporate clients now account for 12% Corporate clients trans
Slide 8: Improving Quality of Client Base is Leading to Increasingly Repeat Nature of Revenue
Improving Quality of Client Base is Leading to Increasingly Repeat Nature of Revenue • Existing client cohorts continue to underpin revenue 45% $120M growth 40% - Revenue from existing cohorts was up 26% $100M 35% • Revenue from clients who have been transacting 30% for more than 3 years now account
Slide 9: OFX is Truly a Global Business With Half of Revenue Generated Offshore
OFX is Truly a Global Business With Half of Revenue Generated Offshore Segment Segment Revenue Velocity Revenue Velocity $m FY16 FY15 Growth Australia and New Zealand (ANZ) 60.1 50.7 19% Europe 20.9 19.2 9% North America 17.6 12.9 36% Revenue Revenue Asia 2.1 1.8 17% IPS 10.5 11.0 (5%) Fee and Commi
Slide 10: People, Technology and Marketing are Central to the Success of The Accelerate Strategy
People, Technology and Marketing are Central to the Success of The Accelerate Strategy. All Were Invested in During FY16 People $m FY16 FY15 Growth • Deliberate increases of headcount and capability in technology & product and compliance & risk management. There will be further Employee costs 1 38.2
Slide 11: The Majority of the Group's Employment Costs are in Developing or Selling the Product
The Majority of the Group’s Employment Costs are in Developing or Selling the Product and Supporting the Customer (67%) 1H15 2H16 A$m FY16 FY15 Growth Q4 Runrate Technology & Product 8.3 4.7 77% 9.9 Technology & Product 18% 18% 18% 24% Sales, Service and Compliance & Risk Management 4.9 2.8 75% 4.8
Slide 12: A Deliberate Investment in Technology Infrastructure
A Deliberate Investment in Technology Infrastructure A$m 2016 2015 Growth Q4 FY16 Runrate Technology Infrastructure 2.2 1.2 87% 3.5 % Gross Revenue 2.0% 1.3% Expensed Capitalised Migration to Cloud Customer facing website • The Group moved all its non-production environments to the cloud during the
Slide 13: World Class Marketing Will Be the Key to OFX's Success
World Class Marketing Will Be the Key to OFX’s Success Despite the investments made in order to support the brand change, the cost of acquiring clients (CAC) on a constant currency basis remained consistent with 2015. FY17 will see the Group diversify its marketing spend Per Client CAC into non Goog
Slide 14: Contribution to Corporate Expenses Grew 10% in FY16
Contribution to Corporate Expenses Grew 10% in FY16 A$m FY16 FY15 Growth • Asia and North America are still in early stage lifecycle. Overtime the margins of these businesses will lift inline Australia and New Zealand (ANZ) 25.2 22.7 11% with the remainder of the Group. Europe 8.5 7.6 12% North Amer
Slide 15: Self Funded Organic Growth Enabled By Strong Cash Flow Conversion
Self Funded Organic Growth Enabled By Strong Cash Flow Conversion $40m 120% • Operating cash flow to EBTDA ratio - Reduction due timing in settlement of Group’s open positions mark $35m to market positions 100% $30m • Reduction in net cash a result of 80% - Capitalised Investment in customer facing
Slide 16: Financial Strength
Financial Strength Group Balance Sheet • The Group remains debt free and well positioned to Balance Sheet FY16 FY15 Assets continue to invest in growth Cash 142.1 168.8 Receivables due from financial institutions Derivative financial instruments 20.8 27.0 5.2 10.3 • Net assets increased 12% on FY15
Slide 17: Outlook
>) Financial Update Outlook
Slide 18: Outlook
Outlook We currently expect the FY17 result to be characterised by Strong revenue growth driven by Lower 1H17 EBTDA margins as above increasing active client numbers the line marketing expenditure is as above the line strategy becomes refined and economics improved, effective leading to improving ma
Slide 19: Strategy Update
Strategy Update
Slide 20: Accelerate Strategy
Accelerate Strategy Double revenues by FY2019 Enablement Phase 1 Phase 2 AUD NON- AUD TARGET ADJACENCIES Brand & Marketing Technology People 20
Slide 21: Sharing The Best Kept Secret
Sharing The Best Kept Secret Previously constricting the funnel Before ◀ • Awareness driven by customer Awareness advocacy alone • Marketing focussed on paid search – Engagement those already in market Discovery ◀ Largely operating here Now through search and • Investing in media to accelerate aware
Slide 22: Building And Leveraging the OFX brand in Australia
Building And Leveraging the OFX brand in Australia Build brand awareness in mediums to maximize conversion. Additional $5m investment in marketing in FY17 Digital TV Social Outdoor Press 22
Slide 23: Building A High Velocity & Agile Technology Environment
Building A High Velocity & Agile Technology Environment Velocity of features delivered Last 6 months Stabalised development environments Created dedicated product teams Implemented tech infastructure Brought product and tech under CTO Created dedicated Impact team Next 12 months Become cloud native
Slide 24: People & Culture: OFX Values And Behaviours
People & Culture: OFX Values And Behaviours ALWAYS KEEP LEARNING WE’RE BETTER TOGETHER GSD INSPIRE CUSTOMER CONFIDENCE PUSH BOUNDARIES We are self-starters and Grow your expertise. There’s always a smarter way. Understand intuitively, define Your commitment to them will earn Share it freely 24and so
Slide 25: What Does Success Look Like
What Does Success Look Like World class performance marketing. Infinitely scalable digital platform. Trusted global brand. Number 1 in Australia and expanding globally. Price advantages through internal peer to peer matching. Fraud protection using custom intelligence and system design. Employer of
Slide 26: Summary of Year
Summary of Year Accelerate Strategy FY16 was defined by investment Announcement of 3 year strategy to strengthen position as and change as the Group positioned Australia’s number 1 non-bank international payments provider, accelerating offshore expansion and doubling revenue itself to embark on its
Slide 27: Q&A
QS5A
Slide 28: The material contained in this document is a presentation of general information about the
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 (17 May 2016). It is provided in summary form and does not purport to be complete. You should not rely upon it as advice for investment purposes