Slide 1: Financial Year 2018 Results
Financial Year 2018 Results Investor presentation 22 May 2018
Slide 2: Agenda
Agenda 1. FY18 Summary 2. FY18 Financial results 3. FY19 Outlook 4. FY19 Focus areas 5. Q&A 2
Slide 3: FY18 Summary
FY18 Summary Skander Malcolm Chief Executive Officer and Managing Director 3
Slide 4: Good outcomes, delivering on commitments
Good outcomes, delivering on commitments Grow revenue by driving fundamentals NOI • Revenue1 growth: strong momentum in North America and Asia, up $109.9m 4.6% 12% and 68% respectively, and Corporate growth of 11% • Australia up 3.6% in 2H18 vs. 2H17 • Transactions increased 13.1% on FY17 • Stable F
Slide 5: Fundamentals continue to improve
Fundamentals continue to improve Client retention, Significant increase in Strong growth in Continue to attract high Client value increases targeted marketing and client activity… transaction volumes … ATV clients… turnover across the group re-activation … Transactions Active clients Transactions AT
Slide 6: Increasing momentum with minimal volatility
Increasing momentum with minimal volatility Quarterly NOI growth (7.9%) 7.1% 11.5% More focus and better insights driving momentum 9.5% • Daily operating rhythm drove execution Includes Brexit • Analytics and insights driving client engagement through: – targeted marketing campaigns; and – enhanced
Slide 7: Diverse revenue growth, strong global platform
Diverse revenue growth, strong global platform Revenue Turnover - 3.0% Transactions + 17.6% 1H17 2H17 1H18 2H18 Europe Revenue North America Revenue Asia 1H17 2H17 1H18 2H18 Turnover + 57.1% Transactions + 122.8% 1H17 2H17 1H18 2H18 A&NZ Turnover + 18.7% Revenue Transactions + 24.7% Turnover + 7.2%
Slide 8: FY18 Financial results
FY18 Financial results Selena Verth Chief Financial Officer 8
Slide 9: FY18 financial results
FY18 financial results Financial results FY17 FY18 Var % Heathy financial indicators Financial Metrics • Lead revenue indicators: Fee and trading income ($m) 114.1 119.0 4.3% – Growth in active and returning clients; Net operating income ($m) 105.1 109.9 4.6% – Growth in turnover and transactions; a
Slide 10: Revenue driven by strong portfolio of returning clients
Revenue driven by strong portfolio of returning clients 40 Consumer revenue $m 35 30 25 20 15 10 5 - 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 Returning Active Clients at New clients clients 31-Mar-18 28% 72% Up from 69% in 161.9k FY17 Up 3.3% from 31-Mar-17 30 Corporate revenue $m 25 20 15 10 New Cli
Slide 11: Delivered positive operating leverage
Delivered positive operating leverage Operating expenses $m FY17 FY18 Var % Focused cost management and visibility Employee expense1 (42.8) (46.1) 7.8% • Employee average FTEs increased 11.6%, whilst employee Promotional expense (16.3) (16.1) (1.2%) expenses grew 7.7% Technology infrastructure (4.8)
Slide 12: No debt, and strong cash flow generation
No debt, and strong cash flow generation $m 31-Mar-17 31-Mar-18 • Cash held for own use, $47.3m, up 45.2% from $32.5m as at 31 March 2017 Assets • Final dividend of 3.0c per share will be paid out of free cash flow Cash held for own use 32.5 47.3 • Investment in capex, funded through own cash genera
Slide 13: FY19 outlook
FY19 outlook Skander Malcolm Chief Executive Officer and Managing Director 13
Slide 14: Trusted international money services provider
Trusted international money services provider Our mission Growth drivers To become the trusted international money services provider by consumers and businesses, who value a seamless digital experience at a competitive price; Client Geographic Partnerships with a personal, “always on” support team E
Slide 15: Continued geographic expansion
Continued geographic expansion North America Asia UK & Europe • Increased sales and • Expansion of sales team • Continue to grow Consumer marketing investment and marketing resources and Corporate • Localising the client • Expansion of Online Sellers • Localising the client experience experience (Gl
Slide 16: Improving client experience
Improving client experience Further invest Streamline on-boarding in CRM Enhance service across regions • Complete client delivery journeys by segment • New mobile application • Localise the client and website rollout experience • Develop Corporate CRM campaigns in more depth • Global Currency Accou
Slide 17: Leveraging partner strengths in a connected eco-system
Leveraging partner strengths in a connected eco-system Commercial Partnering to deliver Embedding client opportunities driving operational excellence analytics and insights growth • Alliance partnerships • Amazon Web Services • Google relationship • Enterprise • Salesforce • Brand elevation & evolut
Slide 18: FY19 – Focus areas
FY19 – Focus areas Growth drivers Client Experience Geographic Expansion Partnerships • Streamline and localise client journey • Growth of North America • Commercial opportunities • Further investment in CRM • Growth of Asia and Online Sellers • Operational excellence • Enhance service delivery • UK
Slide 19: FY19 – Summary outlook
FY19 – Summary outlook Financial commitments Deliver an annual positive operating leverage on an EBITDA basis Maintain stable NOI margin Investing in growth, operating expenses and capex to increase 19 19
Slide 20: Q&A
Q&A 20 20
Slide 21: OFX Group Limited
The material contained in this document is a presentation of general information about OFX Group Limited (Company) and its activities current as at 22 May 2018. Material is provided in summary only and does not purport to be complete. The material contained in this document has been prepared without