Ofx Group Ltd. · ASX:OFX
Ofx — OzForex Group — Shareholder Meeting (August 2015)
50 slides from Ofx's shareholder meeting presentation, August 2015
Slide 1: Annual General Meeting 2015
OZFOQJREX GROUP ANNUAL GENERAL MEETING 2015
Slide 2: Meeting Agenda
Meeting Agenda • Chairman’s address • CEO presentation • Formal business • Q&A 2
Slide 3: Chairman's Address
OZFOQJREX GROUP CHAIRMAN’S ADDRESS
Slide 4: FY15 Full Year - Key Metrics
FY15 Full Year - Key Metrics The FY15 result delivered strong growth on FY14 across all key financial and operational metrics. Financial Metrics FY15 GROWTH Net Operating Income 90.1 24 ($m’s) Pro Forma EBTDA 34.5 % ($m’s) 24.3 22 Pro Forma NPAT ($m’s) % Operational Metrics 21 Active Clients* 142.5
Slide 5: CEO Presentation
OZFOQJREX GROUP CEO PRESENTATION
Slide 6: We are a FinTech Company
We are a FinTech Company We enable borderless payments: We differentiate We use technology and through: our access to local Convenience, Speed, payment networks to Breadth and Price. disrupt the corresponding banking network. 6
Slide 7: Current State
(4) Current State GROWING GLOBALLY SUPERIOR CUSTOMER SERVICE PAYMENTS ON ALL DEVICES MASSIVE MARKET OPPORTUNITY TRACK RECORD ONLINE BUSINESS NUMBER 1 IN AUSTRALIA STRONG FINANCIALS
Slide 8: Consistent Growth
Consistent Growth Number of Payments 400k 350k 300k 250k 200k 150k 100k 50k 0 H2FY06 H21 FY07 H2FY07 H21 FY08 H2FY08 2 FY10 H 1 FY09 H2FY09 2H 1 H2FY1 0 H2 1 FY11 H2FY1 1 H1 2 FY12 H2FY1 2 H21 FY13 H2FY1 3 H21 FY14 H2FY1 4 H2 1 FY15 H2FY1 5 8
Slide 9: Evolution
Evolution PRODU CT MARKETIN G+ TECHNOLO GY 9
Slide 10: A 3 year ACCELERATE strategy
We are accelerating our plans for the future in the geographies and channels where the best opportunities are available. “A 3 year ACCELERATE strategy”
Slide 11: Growth Opportunities
Growth Opportunities Increase Increase Target penetration penetration Adjacencie in Australian in non-AUD s market
Slide 12: Growth Opportunities: Increase Penetration in Australian Market
Growth Opportunities Increase Penetration In Australian Market 12
Slide 13: Growth Opportunities: Increase Penetration in Non-AUD
Growth Opportunities Increase Penetratio n in Non- AUD 13
Slide 14: Focussing On The US
Focussing On The US • Foreign born population – 7 x larger • International student population – 3 x USA vs larger Australia • Value of international trade – 13 x larger • Number of SMEs – 4 x larger Sources: OECD Statistics: Stock of Foreign Born Population 2012 OECD Statistics: Foreign / Internatio
Slide 15: Growth Opportunities
Growth Opportunities OFX WORL 0.90% D 1.27% 7.01% 1.39% 14.81% 1.79% 19.50% 1.05% 1.92% 1.92% 0.95% 0.30% 2.17% 2.69% 44.64% 7.92% 10.90% 35.20% 16.10% 28.30% 0.75% 0.04% 0.40% Source: Swift USD EUR GBP JPY CNY CAD AUD CHF HKD SGD OTHER Watch AUD a dominant currency for OzForex 35.2% of all currenci
Slide 16: Growth Opportunities: Target Adjacencies
Growth Opportunities Target Adjacencie s 16
Slide 17: Wholesale
Wholesale FULL SERVICE PARTNERSH IPS PAYME WHOLESA NT LE ENGIN E PLATFORM AS A SERVICE 17
Slide 18: Mobility
C Mobility EVERYTHING ON THE GO. EVERYWHERE YOU ARE
Slide 19: Lower Value Payments
Lower Value Payments Opportunity to grow number of smaller value payments 88% of OzForex Group Transactions $1000 OzForex Advertised Minimum Transaction 10% of OzForex Size Group Transactions $250 OzForex Actual Minimum 2% of OzForex Group Transactions Number of Payments 19
Slide 20: To Accelerate Growth We Are Making A Strategic Shift
To Accelerate Growth We Are Making A Strategic Shift To marketing and technology company focussed on delivering borderless From a product led payments outside of the corresponding company bank network at the lowest possible cost enabling our customers global lives and businesses. 20
Slide 21: 12 years to hit $100m revenue
12years to hit $100m revenue - in 3 more we will hit $200m
Slide 22: Core Enablers
Core Enablers Peopl Technolo Brand e gy & Marketin g 22
Slide 23: Core Enablers: People
QO Core Enablers People TALENT DEVELOPMENT CAPABILITY CHIEF WHOLESALE OFFICER CULTURE CHIEF MARKETING OFFICER RETENTION & ATTRACTION UPDATED OFFICES
Slide 24: Core Enablers: Technology
QO Core Enablers Technology AGILE ARCHITECTURE EVOLUTION MODULARISATION CUSTOMER EXPERIENCE >" N (| | \
Slide 25: Core Enablers: Brand & Marketing
Core Enablers Brand & Marketing TAILORED GEOGRAPHIC CUSTOMER FOCUS MARKETING 25
Slide 26: A single brand for the future
A single brand for the future.
Slide 27: A Single Brand For The Future
A Single Brand For The Future 27
Slide 28: Investing For The Future: Impacts of the Accelerate Strategy
Investing For The Future • Extra $20m costs over 24 months in FY17 and Impacts of FY18 • ½ Capex / ½ Opex the Accelerate • Revenue will grow faster than expenses Strategy • Earnings will grow faster than revenue • Double revenue in 3 years 28
Slide 29: Investing For The Future: Principles of the Accelerate Strategy
Investing For The Future • Accelerates growth Principles of • Sensible, mature, targeted, measured the Accelerate • Risk adjusted Strategy • Delivers EBTDA, growth greater than revenue growth 29
Slide 30: Outlook for FY16
Outlook for FY16 EBTDA for FY16 will range between $38.5m and $40.5m. In line with consensus. 30
Slide 31: One Global Platform One Global Team One Global Brand
One Global Platform One Global Team One Global Brand
Slide 32: Formal Business
OZFOQJREX GROUP FORMAL BUSINESS
Slide 33: Resolution 1: Receive Financial Report
Resolution 1 “To receive and consider the Financial Report and the Reports of the Directors and Auditor for the year ended 31 March 2015.”
Slide 34: Resolution 2: Adopt Remuneration Report
Resolution 2 “To adoptthe Remuneration Report for the year ended 31 March 2015.”
Slide 35: Our Approach to Remuneration
Our Approach to Remuneration Key Criteria Other Criteria Alignment to shareholders interests • Competitiveness and • Has economic profit as a core component of reasonableness plan design • Performance link • Focuses on sustained growth in shareholder • Transparency wealth • Incorporates shareholder
Slide 36: Remuneration Snap Shot
Remuneration Snap Shot (as at FY15) COMPONENT DETAILS RANGE FOR EXECUTIVES Total fixed TFR may be delivered as a 40% for CEO remuneration combination of cash and 60-70% for other KMP prescribed non-financial benefits at Executives the Executives discretion. Short-term 50% of total target STI is base
Slide 37: Votes: Resolution 2 – Remuneration Report
Votes : Resolution 2 – Remuneration Report VOTES For* 131,804,368 95.95% Against 5,230,440 3.80% Open votes (other than to chairman) 343,773 0.25% Total votes 137,378,581 100% Abstain 181,379 Figures relate to proxies lodged up to 7pm, 3 *Votes in favour consist of directed proxies and open proxies
Slide 38: Resolution 3(a): Re-election of Peter Warne
Resolution 3 (a) “That Peter Warne, being a Director who is retiring by rotation , offers himself for re-election, be
Slide 39: Peter Warne
Peter Warne Peter works as a full time professional director. Peter joined the OzForex Group in September 2013 and has over 30 years’ experience in banking and finance. Peter’s prior professional experience includes Head of Bankers Trust Australia Limited’s Financial Markets Group. Peter is also a D
Slide 40: Votes: Resolution 3(a) – Election of Peter Warne
Votes : Resolution 3 (a) – Election of Peter Warne VOTES For* 131,944,085 99.60% Against 212,548 0.15% Open votes (other than to chairman) 346,773 0.25% Total votes 132,533,406 100% Abstain 76,554 Figures relate to proxies lodged up to 7pm, 3 *Votes in favour consist of directed proxies and open pro
Slide 41: Resolution 3(b): Election of Douglas Snedden
Resolution 3 (b) “That Douglas Snedden, being a Director who is retiring in accordance with the Company’s constitution and being eligible offers himself for
Slide 42: Douglas Snedden
Douglas Snedden Doug joined the OzForex Group Board in March 2015 and has had more than 30 years’ experience in finance, consulting, strategic management and outsourcing largely gained through a distinguished career at Accenture, most recently as Managing Director of its Australian business. Doug al
Slide 43: Votes: Resolution 3(b) – Election of Douglas Snedden
Votes : Resolution 3 (b) – Election of Douglas Snedden VOTES For* 137,711,656 99.49% Against 357,879 0.26% Open votes (other than to chairman) 346,773 0.25% Total votes 138,416,308 100% Abstain 163,652 Figures relate to proxies lodged up to 7pm, 3 *Votes in favour consist of directed proxies and ope
Slide 44: Resolution 4: Grant of Performance Rights and Options to CEO
Resolution 4 “To approve for all purposes, including ASX Listing Rule 10.14 and sections 200B and 200E of the Corporations Act 2001, the grant of performance rights and options to the Managing Director and CEO, Richard Kimber under the OzForex Group Long Term Incentive Plan and on the terms summaris
Slide 45: CEO Remuneration Package For 2016
CEO Remuneration Package For 2016 2016 PACKAGE Total fixed remuneration $500,000 STI target value $750,000 LTI: Performance $250,000 Rights Options 400,000 options 45
Slide 46: Performance Rights
Performance Rights • Proposal to issue performance rights equivalent to $250,000 • Number of performance rights calculated by reference to fair value • Fair value was calculated at 26 June 2015 as $1.8383 = 135,995 performance rights • Performance conditions to apply to the proposed grant of perform
Slide 47: Options
Options • Proposal to issue 400,000 options • Exercise price of $2.49 per option, being the volume weighted average price of ordinary shares over the 5 trading days prior to Mr Kimber’s appointment • 200,000 eligible to vest on 30 June 2018 and 200,000 eligible to vest on 30 June 2019 47
Slide 48: Votes: Resolution 4
Votes : Resolution 4 Issue of Performance Rights & Options to the CEO VOTES For* 135,741,039 96.59% Against 4,371,724 3.19% Open votes (other than to chairman) 306,273 0.22% Total votes 140,389,036 100% Abstain 140,924 Figures relate to proxies lodged up to 7pm, 3 *Votes in favour consist of directe
Slide 49: Questions & Answers
Questions & Answers Important Notice This presentation is given on behalf of OzForex Group Limited (ABN: 165 602 273) Information in this presentation: •is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in OzForex
Slide 50: Thank You!
OZFOQJREX GROUP THANK YOU!