OFX Group Limited
ABN 12 165 602 273
OFX Group Limited | ABN 12 165 602 273
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From the Chair
From the CEO
OFX at a glance
Company highlights
About us
Case study
Executive team
Environmental, Social and Governance
Directors’ Report and Financial Statements
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Directors’ Declaration
Independent Auditor’s Report
Shareholder information
Corporate information
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 1
From the Chair
Fellow Shareholders,
It’s an honour to join OFX and work with Skander, the Board and the OFX team
for all of our stakeholders.
In my short eight months at OFX, I’ve learned
that OFX is an exciting global company with a
strong purpose and culture, a unique and
profitable digital+human business model, and
terrific growth opportunities. It’s an honour to
join OFX and work with Skander, the Board and
the OFX team for all of our stakeholders.
Even though we have had record operational
results, exogenous factors have been
challenging. We don’t underestimate these
circumstances, but we know we are up to the
challenge to continue to sustainably grow a
more valuable company for all stakeholders.
It’s pleasing that OFX has many characteristics
of enduringly successful financial services firms.
Firstly, there is a clear understanding of the
products and markets in which OFX operates.
We have a deliberately narrow product set with
a clear view of the levers we can pull, the risks
we must manage and the ways in which we can
differentiate. This gives us a real competitive
advantage in improving continuously, creating
stronger and more valuable client relationships
and weathering economic cycles.
Secondly, we have excellent risk management
credentials. Risks change, evolve and grow
constantly. As we add product or regions, the
risks compound. The experience of the Board
and management team are well matched to
these dynamics. We have a clear and shared
line of sight to our risks, we have deliberate
discussions which lead to specific actions,
and we rigorously follow up.
Finally, we are ambitious. Growth and returns
don’t happen by accident – they happen because
the team wants to make a difference and is
capable of making that difference. I am very
encouraged by the appetite and energy of the
team and the Board in wanting OFX to grow and
to be more valuable. This appetite and energy
is backed by solid global financial services
expertise and a genuine understanding of
how to execute throughout our value chain.
2 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Executing and building a valuable company
This year we delivered record results, but we are
also building real momentum in the transition of
OFX to a more global, more B2B-focused and
more valuable company.
I will be working with the Board in a few areas in
particular, to assist Skander and the team build a
more valuable company.
Firstly, we are at a stage where it is critical to
aggressively execute on our growth strategies.
We must build on this Board’s significant global
experience, by continuing to work with the team
on our global expansion both in terms of
increasing our market share as well as opening
larger market opportunities. As many have
noted, the global payments market is still highly
fragmented yet very large and that translates
into very substantial opportunity. As a Board we
can help by connecting valuable networks,
sharing experiences of our own corporate
careers and working with management to focus
our resources on the best global opportunities.
Secondly, even with this Board’s strong risk
credentials, we must each continue to be fully
versed in the emerging and changing risks
including cyber, other highly sophisticated
financial crime, evolving regulatory requirements
and new governance expectations. For example,
as a Board we have already engaged in more
cyber risk training since August than we had
cumulatively in the five years’ prior. That’s not
a poor reflection of the prior period. Rather it
reflects the relative risks and the new risks we
face. Similarly, although OFX is well-recognised
internationally for its fraud and AML risk
management, the environment continues to
toughen. We are proud of the unique strength
of our risk management not only in safeguarding
customers but also in advising our valued
regulator and other government stakeholders
in multiple jurisdictions. The Board continues to
constructively challenge our OFXers to maintain
our leading risk practices.
Finally, our continued dedicated investment
in technology is imperative, as is ensuring
that capital is spent wisely, programs are
well-managed and there is a clear line of sight
to the benefits, whether they be in building
a safer company, a better client experience,
a lower cost to serve or all of the above.
We must continue to be thoughtful and
disciplined in our investment of capital
and of our human resources.
These points of Board focus are in addition to
the success factors OFX has always focused
on – good governance, strong investor
engagement, supporting the development
of clear strategy and helping build a great
culture. Related to these success factors,
I want to especially thank our former Chair,
Steve Sargent, who served OFX for six years
and led the embedding of these practices
from the top down.
It’s a great time to join OFX, and I am
delighted to be part of the team. For those of
you whom I have already met, thank you for
giving me such a warm welcome. Many thanks
to Skander, the Board and the entire OFX
team for your hard work and significant
contributions to our operational and strategic
success. I look forward to continuing to work
with all of you.
Patricia Cross
Chair
23 May 2023
It’s pleasing that
OFX has many
characteristics of
enduringly
successful financial
services firms.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 3
We finished the year with
record results, record
employee engagement, and
more reliable and scalable
than we have ever been.
From the CEO
Fellow Shareholders,
The 12 months ending 31 March 2023 (FY23) was a very important and
challenging transition for all companies, emerging into a post-COVID
world, and having to manage through the most rapid set of increases
in interest rates, and inflation, in all regions, in a decade.
It forced new approaches on how to best
support our people, which growth and
productivity programs were the most critical, as
well as how to build a more valuable company in
these conditions.
We also completed our first acquisition, of Firma,
in May. More about that later, but it has
delivered underlying EPS accretion of greater
than 30% in its first year, well ahead of our target
of 20%.
At OFX, the work we have done in the last 5 years
to understand our clients, build engagement
with our people, and invest in our technology
was what allowed us to transition so well.
We finished the year with record results, record
employee engagement, and more reliable and
scalable than we have ever been.
Results were strong, with record Net Operating
Income (NOI), NOI margins, underlying EBITDA,
and all our regions contributed well.
In FY23, 59% of our Fee and Trading Income
(revenue) was derived from our Corporate
segment, confirming our strategic pivot to
Corporate, first described in FY19, as being well
and truly delivered. By way of contrast, in FY18,
our Corporate segment contributed 36% of our
group revenue.
Similarly, 42% of our revenue came from our
North American region. In FY18 we saw 19% of
our revenue from North America. In fact, APAC,
which is where we were founded, despite
growing consistently, now only represents 43%
of our total revenue, also confirming we are well
on our way to be a truly global company, one of
our critical strategic goals.
Finally, we welcomed our new Chair, Patricia
Cross, who succeeded Steve Sargent in August
2022. We were very fortunate to have had Steve,
and Tricia brings a wonderful set of skills, as well
as a great deal of ambition for OFX globally.
Trading highlights
Net Operating Income of $214.1 million, up 45.6%
on FY22.
Growth in NOI margin from 53bps to 65bps.
Underlying EBITDA of $62.4 million, up 40.3%
on FY22.
A record year
Underpinning the trading highlights were very
strong performances across the regions and the
segments.
APAC delivered $89.9 million of revenue, which
was up 7.4% on FY22. Corporate growth in the
APAC region was 19.5%, driven by transaction
growth and strong margins. Our pivot in
Enterprise to small and mid-sized prospects is
gaining traction with two new partnerships
signed and activated in the latter half of FY23.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 5
From the CEO
North America delivered $88.7 million of
revenue, which was up 105.7% on FY22, driven
by the acquisition of Firma, along with strong
Corporate growth. The Corporate segment in
North America represented 71% of the region’s
fee and trading income in FY23.
EMEA delivered $31.7 million of revenue, which
was up 27.2% on FY22 with the Corporate
segment delivering growth of 79.2%.
We continue to invest in our expansion into
Europe with revenue up 9.4% over FY22.
Corporate revenue was $124.6 million, up 89.4%
on FY22 through strong organic performance
and the acquisition of Firma in May 2022. The
growth in revenue was driven by a 29% growth in
transactions, average transaction values up 14%
and strong margin management. Our Online
Seller segment was down 6.9% for the year with
softer conditions in the eCommerce market and
a drop in consumer confidence particularly in
during the second half in FY23.
Our Enterprise segment was up 2.1%,
strengthening in 2H23, up 14.0% on 1H23, with
increased activation in the existing portfolio. We
are seeing a positive trend in repositioning of
our target client base with two new clients in
2H23 already trading. Finally, consumer revenue
was up 0.3% in the year with high value use
cases declining in 2H23 as rapidly rising inflation
and interest rates impacted consumer
confidence and asset values.
6 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Integrating Firma
In last year’s letter I wrote, in relation to the
Firma acquisition, that “Our first year of
integration is about retaining the Firma people,
about delivering Firma underlying EPS accretion of
20% on an annualised in year basis, and ensuring
the integration execution is well set for Year 2.” On
all counts, the team has done an excellent job.
In terms of retaining people, voluntary attrition
amongst the Firma team has decreased
meaningfully from October 2022 – March 2023.
Further, engagement scores are stable, we have
recognised team members through more than
40 promotions across the Company and seen
excellent collaboration as the integration
progresses. The Firma senior leadership team
participated actively in our annual leadership
summit in September and have brought
beneficial skills and momentum to the Group.
Firma delivered underlying EPS accretion of
greater than 30%, comprised of very strong
revenue and better than expected cost
synergies.
Our migration of the regions is well on track for
this year, as we targeted, which will create
further opportunities to grow and realise cost
synergies, as well as bigger and more challenging
roles for employees.
For many in OFX and Firma, it was their first
integration. As such it is a testament to the
collective esprit d’corps of the group to build and
execute a very strong integration program,
drawing on teams from both organisations. We
have learned a great deal about what to look for
in a good acquisition, as well as how to integrate
well. I must thank Ken Wills, James Gref, and
Surbhit Soni in particular for their outstanding
leadership here.
From the CEO
Where to from here?
Conclusion
The critical components of our transition have
been well and truly been delivered. We are a
more valuable company, with more recurring
revenues, a stronger global infrastructure
and a much stronger team. We must now take
these advantages and grow sustainably,
whether organically or inorganically, to leverage
all the hard work and investment over the last
five years.
Thank you to our investors for investing in us
this year, we appreciate your support.
Thank you to our loyal clients. We never take
your custom for granted.
Thank you also to our Board who have challenged
us, shared their experiences to see us grow, and
worked incredibly hard.
Finally, a big thanks to all the dedicated OFXers,
including all those who have joined as part of
Firma, who make this such a great Company.
Skander Malcolm
Chief Executive Officer and Managing Director
23 May 2023
We have OFX in strong shape, having delivered
many of the key aspects of the transition we set
ourselves in FY19 – to be more global, more
Corporate, reliable, and scalable. However, for
our Global Executive Team in particular, it feels
as though the best work is yet to come. We see
considerable opportunity to further improve our
global infrastructure – our technology platform,
our risk management program and our global
footprint.
Technology creates scale, speed and safety, and
we are investing heavily – over $54 million in
CAPEX since FY18 (compared to $75 million in the
cumulative period 1998 – 2017). But there is
more to do – we want faster settlement times for
our clients, more sophisticated digital risk
management tools, easier to access digital
platforms for our clients, and our people to use,
better reporting tools, better cyber defense
programs and much more.
All great, durable, financial services company are
excellent at risk management, and OFX is no
exception. We want to take the strong risk
culture and expertise we have and complement
it with better tools, more contemporary analytics
and more global lessons to enhance our risk
management practices. We took the decision to
separate Risk as a function from Operations with
effect from January, and we look forward to
further strengthening our approach as a result.
Finally, the progress in building a more global
company has been excellent, but there is
considerable opportunity to be stronger in
EMEA especially. Our investments in that region,
as well as North America and APAC, will drive our
global footprint further, safely.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 7
OFX at a glance
We’re global and local...
1m+ clients
715 employees
12 offices around the globe
24/7 support for our clients
$39bn transferred last year
8 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Company highlights
Company highlights
FY23 Underlying EBITDA
Underlying EBITDA margin
$62.4m
Up 40.3% v FY22
29.2%
Net cash held (31 March 2023)
Statutory NPAT
$93.8m
$31.4m
Up 25.6% v FY22
Underlying net profit after tax
(NPAT)
$37.6m
Up 43.1% v FY22
Fee and Trading Income
(Revenue)
$225.0m
Up 42.4% v FY22
Net debt (31 March 2023)
Net promoter score
$18.8m
71
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 9
About us
We’re digital + human
OFX grew from the idea that there had to be a
better, fairer way to move money around the
world. That was 20 years ago, and we’re still
driven by the same mission.
We believe real help from real people counts, and
that’s why we offer our clients the best of both
worlds – an easy-to-use digital platform, combined
with 24/7 phone access to our currency experts
- we call them OFXperts.
Our company values:
Always keep learning.
Share your expertise, learn from others.
Get the right stuff done.
Own it, execute it, deliver the exceptional.
Inspire client confidence.
Keep the client at the centre of everything we do.
Push boundaries.
Discover what is possible.
We’re better together.
We are stronger as one team.
10 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Case study
Corporate client
There’s a story behind every
transfer: Everyday Cashmere
exchange rates and lock in a rate to give us more
certainty on our costs has been critical. And it
makes you a better business person because it’s
not just you leading it. Someone else is there
talking you through it.”
As Jennifer’s business continues to grow, so do
her manufacturing orders. Future planning is
essential to ensure production timelines are met
and there is some level of predictability on her
cost base. With the help of Aylin, Jennifer knows
when the rates are optimal for her key currencies
and can lock in a fixed rate for upcoming orders.
“We have discussions about what our volume is
for the next 2 months and how much we should
lock in. Having that extension of the brand makes
our planning a lot better.”
Now that travel has become a part of people’s
lives again, Jennifer’s customers are able to wear
her cashmere garments for both travel and
for the every day.
How would Jennifer
describe OFX in one
word? Personal.
Jennifer Hart started her clothing business in
2008, offering a solution to the struggle of finding
“versatile garments to rely on in all situations”.
Prior to the COVID-19 pandemic, Jennifer
recognised that a love of travel across both the
north and south hemispheres was something
innate to Australian culture, making climate-
controlled outfit selections difficult.
To ensure high quality, ethically produced
products for customers, Jennifer sources
Mongolian cashmere yarn from family-run farms.
Managing currency fluctuations, paying overseas
suppliers on time and keeping up to date with
incoming orders can be challenging for any
small business.
“Suddenly realising you have $50,000 worth of
stock landed and cleared because that fits in
with the manufacturer’s schedule is hard because
you can sit on it for 3 or 4 months before you can
actually sell it. We used short-term financing
companies to cover costs initially as we weren’t
supported by anyone. Like any small business,
cashflow is key”.
And like many other small business owners,
Jennifer wears many hats. “We are a team of three
people and Aylin [Amey, OFXpert] is an extension
of our team. I think it’s important as a small
business to have a specialist on-hand, someone
who understands the business side and can
integrate their FX knowledge into what the
business needs.”
Developing such a great relationship with Aylin
has meant Jennifer can focus more on the areas
of her business she enjoys. “OFX is a fantastic
because they’re proactive. For a small business,
having that person who can help monitor the
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 11
Case study
Corporate client
There’s a story behind every
transfer: Hark Enterprises
Australian owned Hark Enterprises was founded
in 2004. The same year the business started using
OFX. And for the trifecta, the same amount of
time Tim, Managing Director, has been working
with his OFXpert, Brett. An 18-year relationship,
impressive by any feat.
“Brett has been great. The OFX platform is
advanced enough for me to self-serve, but every
now and then I will give him a call if we need to
change something. There is a nice flexibility in
there to do that. We’ll have a bit of a chinwag
about what’s happening in the currency markets.”
A distributor and wholesaler of barbeque units
and accessories, Hark Enterprises has grown
alongside the deeply ingrained barbeque culture
in Australia.
The question on Tim’s mind when they first
started dealing in US dollars was simple: “How
could we send currency overseas? Or better yet,
buy currency?”
And yet, having briefly worked with a bank for
his foreign exchange Tim knew there had to be
a better, easier alternative to help with business
cash flow.
“Cash flow was really the most important thing
for us. I turned to OFX and it’s been a simple
process ever since. We have dealt with banks in
the past, they are a lot more complex and frankly,
OFX are a lot more competitive on the rates.”
Like many in the consumer and retail category,
Hark Enterprises benefited from the pandemic
as consumers spent more time dining and
entertaining at home. The business saw a
significant boost to sales – but it wasn’t without
its challenges. Shortages of labour, staff and
products meant it couldn’t get stock fast enough
to keep up with demand.
And the business is still feeling the headwinds of
the pandemic. Shipping costs have gone through
the roof, and the length of time to get things
produced has blown out from 30 days to around
90 days. All this can have a compounding effect
on cash flow.
And when it comes to currency movements, safe
to say he’s seen it all.
“It can be hard to manage cash flow with the
huge swings we’ve seen in the dollar. Thankfully,
OFX’s platform makes it easy. You can go online
and check live rates very quickly. For a while when
we were working with larger retailers, we also
used Forward Contracts to protect us from those
large swings.”
Forward contracts allow businesses to lock in
a favourable rate for up to 12 months, so that
businesses know the exchange rate at the time
the transfer takes place.
“Contracts would be three or six months out,
so [for example] we’d sign a deal in January and
deliver it to the customer in May. We’d get a
Forward Contract for that currency for that date
to give us more certainty.”
“My business is not foreign currency. I’m better
off focusing on getting my supply chain right,
supporting dealers and giving a great client
service. OFX has been great.”
How would Tim describe OFX in one word?
Easy.
12 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Case study
Corporate client
There’s a story behind every
transfer: Kulani Kinis
From side-hustle to global swimwear brand,
dynamic duo and co-founders Dani and Alex
never could’ve imagined they’d be making such
a splash in the online swimwear industry.
For Dani, the lightbulb moment was after a
disappointing and expensive online bikini
purchase back in 2014, when online shopping was
still in its infancy. Fellow ocean-lovers spotted a
gap in the market for a better value-for-money
alternative and set the wheels in motion for
Kulani Kinis.
In 2015 the business made its first sale and the
pair haven’t looked back. After 6 months of late
nights and weekend work, Dani and Alex found
a manufacturer in China and created their first
product samples – all while continuing to hold
down their full time jobs; Dani, a full time
psychologist and Alex, accountant by day and
self-proclaimed “bikini baron” by night. Just as
they were perfecting their juggling act, a series
of events saw them launch themselves into the
deep end to see what the US had to offer.
The pair attribute a lot of their initial success and
growth to the trade shows that are so entrenched
in the US start-up scene. Their very first trade
show presented its own unique challenge: finding
a quick and cost-effective way to transfer funds
to the organiser in US dollars, with money sitting
in an Australian bank account.
Enter OFX. “I’ll always remember our first time
using OFX. We needed a fast payment to the US
so we could participate in our first trade show.
Matt Richardson [OFXpert] onboarded us so
quickly and facilitated the payment. That was
the start of our relationship with OFX.”
As the brand’s global presence grew from being
side hustle, so did the need for ongoing FX support.
With OFX now “ingrained in the business” following
that first experience, the pair felt confident they
could build a successful global brand.
“OFX is centered around the idea of helping
businesses get on with what they do, reducing
any hassle. You don’t have to think about it, it just
happens with OFX.”
Today, Kulani Kinis is a successful global
eCommerce business, with a team of 28 spread
across China, Australia and the US, focused on
delivering the best quality products and service
to their customers around the world.
Importing products from international suppliers
and juggling payments in USD, CAD and GBP can
be expensive. Using OFX, Dani and Alex have
found a quick and secure way to make multi-
currency payments without hefty foreign
exchange fees.
“We use OFX as our one stop shop. We pay
manufacturers in China, work with our creative
team in LA and modelling agencies in LA. Even
renting houses for photoshoots is easier”, said Alex.
“Working with OFX has made transferring [funds]
easier and cheaper. They [OFX] always help to
provide transparency so you know you’re in
safe hands”.
With so many moving parts, the business
attributes much of its success to OFX.
“OFX has been integral in getting us to where we
are today, it’s the reason why we have been able
to grow and do what we have been able to do.”
How would this dynamic duo describe OFX
in one word? Opportunity.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 13
Executive team
Key Management Personnel
John (‘Skander’) Malcolm
Chief Executive Officer and Managing Director
Skander joined OFX in February 2017 as CEO & Managing Director.
He has more than 30 years’ experience in financial services and healthcare. In financial
services, he has particular depth across consumer payments, consumer finance, joint
ventures, partnerships, commercial lending and leasing, and digital. His global experience
includes having lived and worked in Australia & New Zealand, the UK, the US, Turkey, the
Middle East, Africa, and Eastern Europe.
Prior to joining OFX, Skander was President Eastern & African Growth Markets for GE
Healthcare, and prior to that, President, GE Capital, Australia and NZ. He worked for GE
from 2003 to 2016, and prior to that worked at Westpac Banking Corporation and
Household International.
He holds a Bachelor of Economics from the University of Sydney.
Selena Verth
Chief Financial Officer
Selena joined OFX in October 2017 and has more than 22 years’ experience in finance,
analytics, M&A and risk across various roles.
Her most recent role was Head of Finance – Platforms, Superannuation and Investments
and Head of Wealth Analytics and Insight at BT Financial Group Australia. Prior to this,
Selena held a number of senior financial roles within GE, including Leader, Financial
Planning and Analysis and Commercial Finance for GE Global Growth and Operations,
Australia and New Zealand and Director of Business Development for GE Australia.
Selena has a Bachelor of Commerce and Executive MBA from the Australian Graduate
School of Management. She is a fellow of CPA Australia and is a Graduate of the Australian
Institute of Company Directors.
Mark Shaw
Chief Operating Officer
Mark joined OFX in January 2018 and is responsible for the Group’s global operations.
Mark was also Chief Risk Officer until February 2023.
Mark has over 20 years’ experience in financial services gained at leading Australian and
New Zealand banks. Most recently he led the Operational Risk and Compliance function for
the Australia Division at ANZ. Mark held several other senior roles within ANZ including
Head of Compliance in both Australia and New Zealand. Before joining ANZ in 2007, Mark
worked at Suncorp managing the group’s governance, policy and regulatory training
frameworks and overseeing compliance and operational risk teams across Australia.
Mark holds bachelor’s degrees in Computer Science and Law from the University of
Queensland and has also completed all three levels of the Chartered Financial Analyst (CFA)
program.
14 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Executive team
Other Executives
Axel Freytag
Chief Strategy & Corporate Development Officer
Axel started as Chief Strategy and Corporate Development Officer in April 2023.
Axel joined OFX two year and a half years earlier as Head of Corporate Development.
His experience spans corporate strategy, finance/M&A and execution. Prior to OFX,
Axel wasa management consultant at Strategy& (formerly Booz & Co). Previously, he held
varied corporate finance roles at GE. Axel has also spent time in private equity and working
with entrepreneurs.
Axel holds an MBA from Columbia Business School (USA) and a BA in Economics from McGill
University (Canada).
Gavin Groll
Chief Risk Officer
Gavin joined OFX in January 2023 as Chief Risk Officer and is responsible for OFX’s Risk and
Compliance functions globally.
He has over 25 years’ experience in senior management positions across financial services,
banking and insurance in Australia and South Africa. Gavin has deep experience in maturing
risk management and culture and is passionate about building capabilities that drive
sustainable and robust organisational outcomes.
Prior to OFX, Gavin was at Genworth Mortgage Insurance (now Helia) for over 10 years where
he held various roles as head of financial and non-financial risk. He was also responsible for
leading various strategic and regulatory programs, working with the Board and executive
management team.
Prior to Genworth, Gavin was at Westpac for eight years where he developed the risk
advisory function for the retail bank and was the lead risk advisor for the St George/Westpac
merger. He has deep experience engaging with regulators, boards and other stakeholders
collaboratively and constructively.
Gavin has also worked in risk roles in South Africa at FirstRand Bank and is a qualified lawyer.
Elaine Herlihy
Chief Marketing and Product Officer
Elaine commenced her role as Chief Marketing Officer at OFX in May 2019 and was appointed
to the role of Chief Marketing and Product Officer in August 2020.
She has over 20 years’ experience in strategic marketing, brand, communications and sales in
FinTech, Banking, Superannuation and Media (B2C and B2B). As Marketing Director at PayPal
Australia, Elaine was responsible for driving client growth and engagement across both the
consumer and merchant portfolios and building the PayPal brand in Australia. Prior to joining
PayPal, Elaine spent eight years at Westpac Group leading brand and marketing functions across
both Westpac Bank and BT Financial Group’s Superannuation business. Elaine also worked in a
variety of marketing and communications roles over a nine-year period at Reuters in London.
Elaine holds a Bachelor of Commerce from University College Dublin and a Higher Diploma in
Marketing Practice from the Smurfit Graduate School of Business in Dublin. She is a Graduate
of the Australian Institute of Company Directors and is an Independent Director.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 15
Executive team
Alfred Nader
President, North America
Alfred joined OFX in September 2019.
He has over 20 years’ experience in all aspects of cross border payments and foreign
exchange, having held senior management positions at Western Union and Travelex.
Before joining OFX, Alfred was Regional Vice President for Latin America and the Caribbean
for Western Union Business Solutions (WUBS) and was responsible for all WUBS activities in
the region. While at WUBS, Alfred also served as Vice President of Corporate Strategy and
Development working in M&A and negotiating international partnership deals. Prior to that,
he held several senior roles with Travelex Global Business Payments.
Alfred holds a BBA from The George Washington University and an MBA from MIT’s Sloan
School of Management.
Yung Ngo
President, Asia Pacific
Yung joined OFX in March 2019 as President, Asia Pacific.
Yung has over 25 years’ financial services experience in the payments, banking and insurance
industries. Prior to joining OFX, Yung has held senior executive positions at Westpac, St.
George Bank and GE Capital leading large-scale operations across retail banking, home
lending and commercial finance. He has extensive experience driving growth across multiple
channels including consumer and corporates, business partnerships and third party channels
as well as call centre distribution.
Yung holds a Bachelor of Jurisprudence and a Bachelor of Laws from UNSW and is also a
Graduate of the Australian Institute of Company Directors. He was a previous non-executive
director for Settlement Services International, a not-for-profit organisation supporting the
humanitarian sector.
Kate Svoboda
Chief People and Culture Officer
Kate joined OFX in January 2021.
Kate has over 22 years’ experience in people and culture across a range of roles in the
financial services industry. Her previous role was as Chief People and Culture Officer at
Genworth Australia where she led culture and engagement, organisational design and
effectiveness, capability and workforce planning, talent acquisition and development,
diversity and inclusion and remuneration and benefits. Prior to Genworth, Kate worked as a
Senior Human Resources Business Partner for Challenger and held various human resources
roles at the Commonwealth Bank of Australia. She has also worked in a range of management
and clinical roles in public health. Kate has deep experience developing people and culture
strategies that support and enable business strategy.
Kate has a Master of Business Administration (University of New England) and a Bachelor of
Speech Pathology (University of Queensland).
16 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Executive team
Adam Thomas
Chief Technology Officer
Adam joined OFX in December 2019 and was promoted to Chief Technology Officer in
August 2020.
He has more than 20 years’ experience in IT and product development across finance, media
and telecommunications and management consulting across many more industries.
His speciality is combining agile, product-led engineering teams with commercial enterprise
architecture to provide scalable capability for business growth and product innovation.
Before joining OFX, Adam was Global Chief Architect for News Corp and Head of Architecture
and Technology Strategy for News Corp Australia, leading the transformation of the many
mastheads towards digital sustainability. Prior to that he was Head of Platforms, leading
large-scale engineering and systems integration teams providing cost efficient delivery of
capabilities and innovation. Adam previously worked in Management Consulting for PwC
and IBM.
Adam holds a Bachelor of Science (Business Information Technology) from the University
of NSW.
Sarah Webb
President, EMEA
Sarah joined OFX in December 2018 as President, EMEA.
Sarah and has more than 20 years’ experience in payments and a track record of developing
client relationships, product initiatives and building profitable businesses. Prior to this,
Sarah held the role of Managing Director, Global Payments Networks at Barclays, where she
led a team responsible for managing strategic partnerships across credit and debit portfolios
globally as well as leading the Barclaycard PSD2 program. Before joining Barclays, Sarah
was Head of Global Product Management, Commercial Payments, at American Express.
Sarah holds a Bachelor of Science (BSc) degree in Maths with Management from Imperial
College, University of London.
Adrian Wong
Chief Legal Officer and Company Secretary
Adrian joined OFX as Chief Legal Officer and Company Secretary in December 2022.
He has over 25 years’ experience in legal, risk, governance and compliance matters, including
over 15 years in financial services.
Prior to OFX, Adrian was General Counsel and Company Secretary at Latitude Financial
Services. He previously held the position of Executive Counsel – Mergers & Acquisitions at
GE, where he was responsible for all M&A activity in Australia and New Zealand. Adrian has
also worked with Energy Australia, Linklaters in London and Ashurst in Australia.
Adrian has a Bachelor of Laws (Honours) and a Bachelor of Commerce degree from Monash
University.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 17
Environmental, Social
and Governance
19 A message from the CEO
20 Primary ESG Metrics and KPIs
21 Environment
24 Social
30 Governance
18 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
A message from the CEO
Environmental, social and governance (ESG) risks and challenges continue
to drive the rapidly changing world in which we operate. As a company, we
have to address these risks in order to mitigate the effects for our clients, our
shareholders, our people and the many communities in which we operate.
These pillars sit alongside our ongoing work to
protect our stakeholders’ privacy and data,
strengthen our cyber security, and demonstrate
transparent pricing and selling practices. We also
continue to comply with regulatory requirements
around the world.
In FY23, we continued to ‘Make a Difference’
in what we delivered for our clients, our
communities, our investors, our regulators
and our people. We did this through improved
reporting on energy usage within our business
operations, increased and ongoing investment in
the development of our people, and the process
and technological improvements made to better
protect our clients privacy and data.
The result for OFX will be to strengthen our
brand and our reputation. That is what our
ESG program is built to deliver.
In this year’s report, we focus on some of the
achievements and progress we’ve made within
our ESG program, which has three core pillars:
Investing in a sustainable future
De-carbonising our business operations, with
the goal of reaching Net Zero and becoming
Climate Active Certified;
Empowering people globally and locally
Driving greater inclusion and diversity, providing
career development opportunities for our
people, and providing volunteering and community
engagement activities for our people globally;
Global financial responsibility
Educating our clients and our people on fraud
awareness and prevention through educational
campaigns and initiatives, underpinned by the
ongoing work to becoming ISO27001 certified
in Australia.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 19
Primary ESG Metrics and KPIs
Primary ESG Metrics and KPIs1
Diversity
Pricing
Privacy
Fraud and
financial
crime
Cyber
Environment
Metric
Female representation on
the Board
Female representation at SLT
level
Time taken to action client
complaints
% of all employees &
contractors trained each year
Number of privacy impact
assessments
FY22
33%
FY23
50%
41%
44%
Target for FY24
Min 40%
Min 40%
2.7
business
days
2.0
business
days
Maintain the time taken
to action client complaint
at 2 business days
90.87%
97.93%
95%
5
6
>= number of new high
risk initiatives involving PI
Fraud training for employees
88.89%
OFX fraud preventions
99.02%
97.69%
97.58%
6
3
95%
97%
<=5
Number of P1
cyber incidents
Percentage of cyber attacks
thwarted
Carbon emission reporting
coverage across OFX
99.99%
99.99%
99.99%
N/A
100%
OFX
entities
100% OFX and integrated
Firma Foreign Exchange
Corporation entities
1. All figures, except OFX fraud preventions and carbon emission reporting, are combined OFX & Firma results and reflect ongoing
integration work.
OFX achieved all FY23 ESG KPIs, except that OFX fraud preventions were 97.58% (-2.41% from target)
and female representation at SLT was 44% (-1% from target). OFX added a new KPI for FY23 on Carbon
Emission Reporting.
Engagement and awareness
As a business we believe that our ESG impact can
extend to helping our people make better
decisions in their personal lives. We are
committed to raising awareness about ESG and
providing opportunities for OFXers to make a
positive impact for people and the planet.
In FY23, we promoted environmental initiatives
through our internal communications, such as
Earth Hour and Clean-Up Australia Day to
encourage our people to participate. We also
continued to encourage our people to minimise
printing and recycle carefully.
20 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Based on FY23 employee survey results, 71% of
our people believe that our business is genuinely
committed to social responsibility and just under
90% of our people who commute to work either
walk, bike or take public transport.
This action plus education contributes towards
our evolution to being a more environmentally-
minded, socially- conscious and resilient
business. In FY24, we look forward to continuing
to help educate our people on ways to get
involved to ‘Make a Difference’ through our
employee volunteering program.
Environment
Investing in a sustainable future
The nature of OFX’s business, driven by our digital + human offering, means
that OFX’s direct environmental impact is not high. However, we understand
that we do have an indirect environmental impact and are committed to doing
what we can to help reduce this impact. We remain committed to taking steps
to actively monitor, reduce and offset our consumption.
Determining high-priority, high-impact areas
We track our environmental impact and focus on
the key issues self-identified in the Sustainability
Accounting Standards Board (SASB) Materiality
Map with the greatest impact on the financial
condition or operating performance of the
consumer finance industry.
In accordance with the SASB Materiality Map,
we have identified the following key issues:
• Carbon emissions reduction; and
• Waste management and recycling.
In FY24, we commit to performing a materiality
assessment to identify and classify the high-
priority, high-impact areas.
Carbon emissions reduction
The first step for OFX was to better understand
our carbon emission output and this starts with
measurement. This allows us to become more
informed and enables us to make more educated
and conscious decisions about our operational
practices now and into the future. Only once our
carbon emission output is known can we then
develop a strategy to help manage, reduce and
mitigate it.
In FY23, we engaged with an independent
carbon emissions management consultant to
calculate and report on our scope 1, 2 and
upstream scope 3 carbon emissions according
to the Greenhouse Gas (GHG) Protocol. This
classification is compliant with the Australian
Government’s Carbon Active Carbon Neutral
Standard for Organisations and the British
Standard Institution’s PAS 2060 Carbon Neutral.
OFX emissions have been calculated on an
‘emission by spend’ basis using data from all
OFX Group Limited entities but excluding Firma
Foreign Exchange Corporation entities (acquired
fully in September 2022). In FY24, OFX will
include the Firma legacy business (once fully
integrated into OFX operations) into our carbon
emission calculations.
OFX’s carbon emission in FY23 was as follows.
Total GHG emissions (CO2e tonne)
Scope 1
Scope 2
Scope 3
Total
0
248.05
8,318.38
8,566.42
Numbers are calculated from estimates only based off total spend,
not including Firma Foreign Exchange Corporation entities.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 21
Environment
Investing in a sustainable future
Green House Gas (GHG) emissions output of the OFX Group of companies
Location
Australia
New Zealand
Hong Kong
Singapore
United Kingdom
Ireland
United States
Canada
Total
Scope 2 :Energy
(Electricity) GHG
emissions
(CO2e tonne)
Scope 3 : Indirect
Upstream
GHG emissions
(CO2e tonne)
Total GHG
emissions
(CO2e tonne)
193.91
1.7
18.41
5.04
9.56
1.04
16.81
1.57
248.04
6,167.02
6,360.93
91.98
197.06
299.64
339.99
51.39
678.92
492.38
93.68
215.47
304.68
349.55
52.43
695.73
493.95
8,318.38
8,566.42
Numbers are calculated from estimates only based off total spend, not including Firma Foreign Exchange Corporation entities.
In office spaces that continue to house our
people, OFX is committed to using energy-saving
technologies for lighting, heating, cooling and
monitoring usage.
In FY24, as a result of measuring and identifying
the main sources of OFX’s carbon emissions, we
are equipped to harness operational changes for
carbon emission reduction as well as make use
of carbon offsets. We recognise that there are a
number of barriers to verifying the efficacy of
carbon offsets, so are working with our external
consultant to make a considered decision and
purchase offsets in FY24.
In summary, OFX does not contribute
to scope 1 emissions. OFX’s energy
consumption is limited to scope 2 and 3
emissions. We estimate that 97.1% of our
emissions are upstream scope 3 emissions.
Whilst cloud computing forms an integral part
of the OFX business, OFX remains committed to
using energy-efficient cloud computing providers.
OFX also remains committed to only using air
travel purposefully. As a global business, OFX
relies upon and is continuing to explore further
opportunities to connect to our people virtually
to reduce emissions related to commuting.
In FY23, OFX made the positive step of significantly
reducing its office space in response to 28.6% of
OFXers (and 43.0% of Firma Foreign Exchange
Corporation workers) working remotely and the
opportunity to combine office space with Firma
Foreign Exchange Corporation.
22 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Environment
Investing in a sustainable future
Top 3 quantified emissions
Waste management and recycling
Waste management and recycling continues to
be a focus for OFX. In FY23, as in previous years,
we actively reduced waste by encouraging
OFXers to recycle at recycling facilities in all of
our locations globally.
In addition, in FY23 we launched a technology
hardware recycling program with an Australian
First Nation’s charity with a focus on “work[ing]
with community to create meaningful points of
connection to share Aboriginal culture and
achievement”. Going forward, we will be
donating out-of-commission technology to this
charity on a biannual basis.
We also donated approximately 300 of our
out-of-commission laptops and personal
computers to an overseas orphanage via a
not-for-profit organisation in Sydney.
In FY24, we commit to continue to use
e-signature tools across our business to reduce
paper consumption; eliminate all single use
plastic cutlery for corporate catering globally;
and choose only those off site venues with
recycling options.
Professional services 64.3%
Cloud computing services 16.3%
Air travel 5.5%
Remaining categories 13.8%
21.6%
Reduction in
office space in
FY23, globally
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 23
Social
Empowering humans globally and locally
A diverse and inclusive workplace
Gender
44%
Female representation
in OFX staff
Linguistic
48%
Speak a language
other than English
Culture
41%
From culturally
diverse backgrounds
Inclusive
88%
Diversity and inclusion
engagement factor
(our second highest)
Our hybrid workplace enables us to employ diverse talent globally
Employees by region
Remote vs office-based
APAC 48%
North America 39%
EMEA 13%
Office-based 79%
Remote 21%
24 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Social
Empowering humans globally and locally
Age diversity among our people
Pay equity
18-24 3%
25-34 37%
35-44 39%
45-54 16%
55-64 4%
Support for working parents
16 weeks
Paid parental leave available
for all employees
Average pay competitiveness of
base salary compared to market
median for role indicating pay
equity on a like-for-like basis
within OFX.
Female
99.1%
Male
99.3%
Gender pay gap (globally)
-15.8%
Gender pay gap for OFX
employees globally (including
Firma employees). Compared to
-22.8% gap for Financial and
Insurance Services organisations
in Australia (2022) and -16.1%
gap for OECD countries (2022).
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 25
Social
Empowering humans globally and locally
Community
partnerships
Employee engagement
Our people indicated: they feel well supported in
relation to their flexibility needs; that people of all
backgrounds have the opportunity to succeed at OFX;
that OFX values diversity; and OFX is a place where
they feel respected.
OFX engagement
75%
70%
65%
60%
55%
70%
74%
65%
68%
59%
2018
2019
2020
2021
2022
Engagement score
74%
Overall engagement score is
+6% compared to 68% (same
population) in FY22; Firma
engagement score 71% (no
prior comparison).
Work-life blend
94%
Work-life blend (94% agreement)
and Diversity & Inclusion
(88% agreement) are key cultural
strengths at OFX.
We support Save the
Children with an
annual donation of
$20,000 to support
its work around
the world. Save the
Children helps protect
vulnerable children,
many of whom are
victims of financial
crime as a result of
child slavery and
people trafficking.
This year, as well
as volunteering, we
promoted Save the
Children’s work to
our people, and
dollar-matched global
employee donations
to emergency recovery
efforts following the
devasting earthquakes
in Türkiye and Syria.
Kari Foundation
In Australia, we also
support the work of
the Kari Foundation
with donations of
pre-used technology,
such as laptops.
26 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Social
Empowering humans globally and locally
Wellbeing and safety
Employee assistance programs
For all of our people to provide a range of mental
health resources including counselling support.
Health
Health insurance coverage for our people in the
US, Canada, the UK, Ireland and Asia.
Wellbeing month
In September, a global initiative to promote and
educate our people about ways to improve their
wellbeing, including a month-long step challenge.
Fitness
Funding to support fitness activities, such as
the JP Morgan Corporate Challenge and team
sporting events.
Our people complete compulsory anti-
harassment, anti-bullying and Code of Conduct
training annually to support our obligation to
provide a safe working environment free from
discrimination, harassment and bullying.
Volunteering
Through our Make a Difference Community
Program, we give our people opportunities to
support charitable organisations they care
about, including a day of leave to volunteer in
the community. In FY23, this has included:
• OFXers packing backpacks with educational
resources for young Indigenous students for
the Kari Foundation in Sydney;
• Sorting through donated items at Save the
Children’s warehouse in Smithfield, Sydney
for distribution to their charity shops;
• Revitalising a purpose-built community garden
at a house that offers training services for
young adults with disabilities at St Michael’s
House, Dublin;
• Decorating Christmas trees to bring some
festive cheer to children at Holland Bloorview
Kids Rehabilitation Hospital in Toronto.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 27
Social
Empowering humans globally and locally
Client service
Moving money without barriers means providing
global access to a frictionless and affordable
service. Client service is a core pillar of OFX’s
digital + human offering. With a global 24/7
follow-the-sun model OFX prides itself on the
availability and access to OFXperts to provide
helpful guidance that allows clients to make
informed choices.
With 20% of OFX’s workforce in client-facing
roles we invest in our “availability” to ensure a
timely response, quality of information and fast
resolution of client queries.
Voice of the client
Net Promoter Score (NPS) and Trustpilot are two
means to help us better understand the client’s
experience and their advocacy. In FY23, OFX’s
NPS was 67.3 and in calendar year 2022, 70% of
OFX’s Trustpilot reviews were 5 stars with ‘ease
of service’, ‘exchange rates’ and ‘security’
consistently favoured by clients.
Our voice of the client program allows clients to
rank their experience and provide feedback on
the service.
28 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
1st trade with OFX
“ This was my first attempt at trading
with OFX. Found the whole experience
from taking out the account, completing
the trade and receiving the money
in my bank account simplicity itself.
Checked against other exchange rates
and found OFX to be extremely
competitive, if not better than most
others. Thank you OFX. Will certainly
use you in the future.”
25 April 2023
Very professional customer service
“ Spoke with Connor Dunleavy today.
He assisted me to finalise my new
account and organise my funds transfer.
He was very helpful and explained
everything very clearly. He has a lovely
manner, was very professional and is a
credit to OFX.”
24 April 2023
Social
Empowering humans globally and locally
Fair and honest selling practices
Ethical and sustainable business practice
We recognise that, given our global operations,
and as a significant purchaser of goods and
services, we have a responsibility and
opportunity to help eradicate modern slavery.
OFX has issued a Modern Slavery Statement
regarding the risk of modern slavery in the
operations and supply chain of OFX Group
companies, as well as the steps we have taken
to respond to the risks identified (refer to our
website for further details and a copy of the
statement).
Our OFX value ‘Inspiring Client Confidence’
reinforces to our people and clients the critical
importance we place on earning and maintaining
client trust. Access to affordable foreign exchange
with transparency around price, inclusive of OFX
margin and fees with no surprises along the way,
is really important in maintaining this trust.
We always aim to provide a competitive price that
reflects the value of the service we offer. We offer
bank-beating and highly competitive rates and fast
money transfers accessible online and over the
phone to help our clients who value the best of
digital experience and human touch. With ‘bank-
beating’ FX rates as a cornerstone of the
proposition, OFX purchases independent third
party industry data in Australia, Canada, UK and
US to validate pricing and show potential savings
versus banks in those jurisdictions. Savings are
calculated by comparing the exchange rate
including margins and fees provided by each
specified bank and OFX on the same day.
We offer public access to calculators, comparison
charts and OFX’s Customer Rate inclusive of OFX
margin and any applicable fees, to allow clients
to make an informed choice on price.
In FY23, we focused on reducing our resolution
time for pricing related complaints by 10% and
have successfully reduced resolution time from
2.7 days in FY22 to 2.0 days in FY23.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 29
Governance
Global Financial Responsibility
Money laundering, fraud and cyber crime are interrelated as criminals often use
cyber infiltration practices and fraudulent techniques to obtain money illegally,
and then launder the proceeds of their crimes to avoid detection and
prosecution. OFX acknowledges that we are in a strong position to have an
impact on many people’s lives through detection, investigation and prevention
of these activities.
Cyber security and data
Cyber security continues to be a significant threat
to businesses globally, and the security of our
clients’ data and OFX’s corporate data is of
paramount importance to us. We design, build and
manage the security for our global data through:
• Security controls: we identify criticality of assets
and data for defining our approach to cyber
security management, designing appropriate
controls and conducting continuous
improvement reviews;
• Security testing: we continuously test our
technology infrastructure to identify and
address weaknesses and vulnerabilities;
• Security oversight: we have a dedicated
team of cyber security experts for oversight,
governance, risk assessment, risk remediation
and review of third parties;
• Security investment: we continue to invest and
expand our security capabilities though different
security systems to cover different technology
stacks and strengthen security controls;
• Incident response: we have defined incident
response processes which are tested and
updated on a regular basis;
• Security culture: we promote a cyber security
conscious culture through security training,
drills and awareness sessions for our people.
This year, cyber security focused on key threat
vectors, email and cloud security. We implemented
email security system to address phishing and
credential theft, implemented and integrated
SaaS platforms with our cloud network for
30 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
vulnerabilities and misconfiguration
identification. We also started on the
preparation for ISO 27001 certification.
For FY24, our focus will continue to be on raising
security awareness amongst our people and
progressing the ISO 27001 certification in Australia.
Privacy
OFX believes that privacy risk is one of the most
important risk classes to manage comprehensively.
This financial year regulators continued to enforce
privacy compliance globally and consumer
expectations about privacy remains front of mind.
Throughout FY23, OFX continued to improve its
maturity in relation to data privacy.
In FY23, work continued to ensure that use cases
for client data were streamlined and managed
appropriately. Role-based access controls were
also implemented into our new Client Relationship
Management system to ensure appropriate access
was in place for client data.
Importantly, this year OFX implemented a
refreshed suite of cyber incident response plans
including an updated data breach response plan.
The cyber incident response plans were tested by
external providers in simulations with
management and the Board. Staff were trained
and reminded of their obligations to report any
suspected data breaches or cyber incidents.
Alongside this work, we continued to enhance our
data retention policy and address compliance.
In FY24, our focus continues on cyber readiness.
Governance
Global Financial Responsibility
Protecting against fraud and cyber crime
• Risk management: understanding current fraud
With heightened fraud and cyber crime across
the globe and across all industries we continue
to invest in content and training to educate our
people and clients on scams, how to detect
them, and how to help protect against them.
Our fraud detection engine driven by AI, coupled
with our 70+ compliance, fraud, cyber security
and client due diligence teams globally both help
to inform the program and ensure all OFXers
are continuously trained. Client service teams
receive additional training to support clients
to help minimise successful scam attempts.
The focal areas for our fraud risk management
program are:
• Deterrence and prevention: ensuring effective
systems and controls are utilised at OFX;
• Detection: finding links to fraud before a
payment is executed as well as detecting where
fraud has occurred;
We continue to strengthen
our security controls,
prepare for cyber
resiliency, and continue
to build a cyber security
conscious culture
Santanu Lodh,
Chief Information
Security Officer
risks and ensuring systems and controls in
place at OFX are appropriately focussed on
those risks;
• Whole-of-organisation approach: all OFXers
know what to look out for and how to escalate
concerns;
• Investigations expertise: a dedicated team of
experts conduct detailed investigations of
potential financial crime matters and work
with enforcement and regulatory authorities;
• Internal awareness and education: ensuring
our people are vigilant against fraud and other
types of financial crimes.
In FY23, we focused on raising awareness of fraud
risk amongst our clients and our people. Clients,
through multiple channels, received more
information on types of frauds and how to help
protect themselves. Our people received guidance
on what to look out for and what action to take to
stop payments which could be related to fraud.
Key systems we use were reviewed and ‘tuned’ to
ensure focus on current fraud typologies.
For FY24, the focus is on strengthening our links
to other financial service providers and
associations so OFX can contribute to stronger
industry-wide protections for our clients.
Governance and conduct
Our Board and management are committed to
excellence in corporate governance and aspire to
the highest standards of conduct and disclosure.
The Company’s governance principles are
designed to support business operations, deliver
on our strategy, monitor our performance and
manage risk. For FY23 our governance practices
complied with the ASX Corporate Governance
Council’s Corporate Governance Principles and
Recommendations (4th Edition). More detail is
available in our Corporate Governance
Statement on our website.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 31
Directors’ Report and
Financial Statements
For the year ended 31 March 2023
32 Directors’ Report and Financial Statements
97 Other Assets and Liabilities
33 Directors’ Report
50 Remuneration Report
72 Auditor’s Independence Declaration
73
Consolidated Statement of Comprehensive Income
74
Consolidated Statement of Financial Position
75
Consolidated Statement of Changes in Equity
76
Consolidated Statement of Cash Flows
77 Notes to the financial statements
77
Results for the Year
77 Note 1. About this Report
79 Note 2. Segment Information
81 Note 3. Net Operating Income
82 Note 4. Expenses
83 Note 5. Income Taxes
85 Note 6. Deferred Income Tax Assets/(Liabilities)
86 Note 7. Earnings per Share
87
Financial Assets and Liabilities
87 Note 8. Cash and Cash Equivalents, Client
Liabilities, and Deposits Due from
Financial Institutions
88 Note 9. Other Receivables (Current Assets)
88 Note 10. Derivative Financial Instruments
89 Note 11. Fair Values of Financial Assets
and Liabilities
90 Note 12. Financial Risk Management
97 Note 13. Property, Plant and Equipment
98 Note 14. Intangible Assets
100 Note 15. Other Creditors and Accruals
(Current Liabilities)
101 Note 16. Provisions
102 Note 17. Leases
104 Note 18. Loans and Borrowings
105 Note 19. Acquisition of Subsidiary
107 Capital Structure
107 Note 20. Capital Management
107 Note 21. Ordinary Share Capital
108 Note 22. Dividends
108 Note 23. Equity-accounted investees
110 Other Items
110 Note 24. Related Party Information
111 Note 25. Share-Based Payments
115 Note 26. Key Management Personnel (KMP)
116 Note 27. Auditor Remuneration
117 Note 28. Parent Entity Financial Information
117 Note 29. Events Occurring After Balance
Sheet Date
118 Directors’ Declaration
119 Independent Auditor’s Report
126 Shareholder information
129 Corporate information
32 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
FY23 was another record year for OFX
with Net Operating Income of $214.1 million,
up 45.6% driven by strong performance in
the Corporate segment and the successful
acquisition of Firma.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 33
Directors’ Report
The Directors of OFX Group Limited present their report on the consolidated entity consisting of OFX
Group Limited (OFX or the Company) and the entities it controlled at the end of, or during, the year
ended 31 March 2023 (the Consolidated Entity or the Group).
1. Directors
The Directors of the Company during the financial year and up to the date of this report are:
Patricia Cross
Chair and Non-Executive Director
BSFS; FAICD Life
Member of the Audit, Risk and Compliance Committee; Member of the People,
Culture and Remuneration Committee; Member of the Nomination Committee
Appointed: 20 July 2022
Independent Director
Residence: Melbourne, Australia
Patricia Cross is a highly experienced Non-Executive Director and Chair. Over the
past 25 years she has served on eight large, listed company boards in Australia and
the UK as well as several government, not-for-profit and advisory boards. She is
currently a non-executive director of Transurban Limited, a member of the Board
of Guardians of The Future Fund, and an ambassador for the Australian Indigenous
Education Foundation (AIEF).
Prior to her career as a non-executive director, Mrs Cross held several senior
executive roles across a wide range of banking, investment and insurance in the
financial services industry, including with Chase Manhattan Bank and Chase
Investment Bank (New York, Helsinki, London), Banque Nationale de Paris and
National Australia Bank (NAB).
She has held honorary government positions including as a founding member of
the Financial Sector Advisory Council and the Australian Financial Centre Task Force
advisory board and has served on several not-for-profit boards including the
Grattan Institute and Murdoch Children’s Research Institute. She is a Life Fellow
of the Australian Institute of Company Directors and founding Chair of the 30% Club
in Australia.
Current directorships
(Listed companies):
Previous directorships
(Listed companies):
Director: Transurban Limited
Director: Aviva plc (2013-2022)
Interest in shares:
100,000 ordinary shares
34 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
Connie Carnabuci
Non-Executive Director
BCom (Marketing) (with Merit), LLB, GAICD
Member of the People, Culture and Remuneration Committee; Member of the
Nomination Committee
Appointed: 1 April 2019
Independent Director
Residence: Sydney, Australia
Connie has 35 years’ experience as a senior legal advisor to, and as an independent
non-executive director of, boards of listed and privately owned companies in
Australia and Asia. She brings significant board and C-suite insights on the practical
execution of business strategies involving global technology and intellectual
property intensive businesses, particularly in the context of M&A, complex
commercial transactions and risk management.
Connie was General Counsel of the Australian Broadcasting Corporation (ABC)
from July 2017 to July 2021, where she was part of the team leading the digital
transformation of the ABC. Prior to her role at the ABC, Connie was a Senior Partner
with the international law firm Freshfields Bruckhaus Deringer. She was based in
Hong Kong for 15 years and led the firm’s TMT/IP practice in Asia. She also served
as Co-head of the firm’s global technology practice. She began her career in Sydney
at Mallesons Stephen Jacques (now King and Wood Mallesons) and was a partner
there from 1997 to 2000.
Current directorships
(Listed companies):
Nil
Previous directorships
(Listed companies):
Director: Atomo Diagnostics Limited (2020-2021)
Interest in shares:
46,832 ordinary shares
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 35
Directors’ Report
Cathy Kovacs
Non-Executive Director
BComm (UNSW) and MappFin (Macquarie), GAICD
Member of the Audit, Risk and Compliance Committee; Member of the Nomination
Committee
Appointed: 22 February 2021
Independent Director
Residence: Sydney, Australia
Cathy has over 30 years’ operational experience in the financial services industry,
having held senior executive leadership roles at Westpac Banking Group, Ellerston
Capital, Macquarie Group and BT Investment Bank. Cathy’s most recent executive
role was as Group Head of Business Development at Westpac until March 2019,
where she was responsible for advising the Westpac Executive Committee and
Board on business disruption and the future of banking and wealth, making
strategic investments and managing strategic partnerships.
Current directorships
(Listed companies):
Director: Hub24 Limited
Previous directorships
(Listed companies):
Nil
Interest in shares:
73,000 ordinary shares
John Alexander ‘Skander’ Malcolm
Chief Executive Officer and Managing Director
BEc, MAICD
Member of the Nomination Committee
Appointed: 1 February 2017
Not independent
Residence: Sydney, Australia
Skander has more than 30 years’ experience in financial services across consumer
payments, consumer finance, joint ventures, partnerships, commercial lending and
leasing and digital. He has worked in Australia and New Zealand, the UK, the US,
the Middle East, Africa and Russia. He previously served as President and CEO of
GE Healthcare, Eastern and African Growth Markets, and prior to that, as President
and CEO for GE Capital, Australia and New Zealand.
Current directorships
(Listed companies):
Previous directorships
(Listed companies):
Nil
Nil
Interest in shares:
2,658,684 (of which 1,118,859 are restricted under the
Company’s Executive Share Loan Plan)
36 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
Grant Murdoch
Non-Executive Director
MCom (Hons), FAICD, CAANZ
Chair of the Audit, Risk and Compliance Committee; Member of the Nomination
Committee
Appointed: 19 September 2013
Independent Director
Residence: Brisbane, Australia
Grant has over 36 years’ experience in accounting and corporate finance. Grant’s
prior professional experience includes Head of Corporate Finance for Ernst & Young
Queensland and he is a graduate of the Kellogg Advanced Executive Program at the
North Western University, Chicago, United States.
Current directorships
(Listed companies):
Director: Lynas Corporation Limited, Director Auswide
Bank Limited
Previous directorships
(Listed companies):
Director: ALS Limited (2011-2020)
Interest in shares:
345,000 ordinary shares
Steven Sargent
Independent Director
BBus, FAICD, FTSE, GAICD
Appointed: 4 August 2016
Resigned: 11 August 2022
Independent Director
Residence: Sydney, Australia
Steve has over 42 years of global corporate experience. Steve’s executive career
included 22 years at General Electric, where he gained extensive multi-industry,
international experience leading businesses in industries including financial services,
healthcare and energy across the USA, Europe and Asia Pacific.
Mr Sargent has been serving as a non-executive director on several boards since
2015. His unlisted board activities include Chairperson of The Origin Energy
Foundation Limited, Origin’s philanthropic arm, and Non-Executive Director of
The Great Barrier Reef Foundation.
Current directorships
(Listed companies):
Director: Ramsay Health Care Limited, Origin Energy
Limited, Deputy Chairperson and Lead Independent
Director: Nanosonics Limited
Interest in shares:
118,444 ordinary shares (as at 15 August 2022 when final
interest notice lodged at the ASX)
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 37
Directors’ Report
Douglas Snedden AO
Non-Executive Director
BEc (ANU), MAICD
Chair of the People, Culture and Remuneration Committee; Chair of the Nomination
Committee; Member of the Audit, Risk and Compliance Committee
Appointed: 16 March 2015
Independent Director
Residence: Sydney, Australia
Doug has over 30 years’ experience in finance, consulting, strategic management
and outsourcing. Doug has previously worked as Country Managing Director of
Accenture Australia. Mr Snedden’s unlisted board activities include Council of the
National Library, Chairperson Chris O’Brien Lifehouse and Chairperson Odyssey
House NSW.
Current directorships
(Listed companies):
Nil
Previous directorships
(Listed companies):
Chair: isentia Group Limited (2017-2021)
Interest in shares:
100,000 ordinary shares
The following persons were Directors of the Company either during the year or as at the date of
the Report:
Connie Carnabuci
Non-Executive Director
Patricia Cross
Cathy Kovacs
Chair and Non-Executive Director
Non-Executive Director
John Alexander (Skander) Malcolm
Managing Director and Chief Executive Officer
Grant Murdoch
Steven Sargent*
Douglas Snedden
* Resigned 11 August 2022.
Non-Executive Director
Chair and Non-Executive Director
Non-Executive Director
38 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
2. Company Secretary
Adrian Wong
BCom, LLB (Hons)
Adrian was appointed as Company Secretary for OFX Group Limited on 23 January 2023. He has over
25 years’ experience in legal, risk, governance and compliance matters, including over 15 years in
financial services. Prior to OFX, Adrian was General Counsel and Company Secretary at Latitude
Financial Services.
Brett Farrell
LLB (Hons), CIPP/E
Brett was appointed as Company Secretary for OFX Group Limited on 9 December 2022. Brett held
senior legal roles at Commonwealth Bank of Australia and Qantas Airways Limited and various legal
roles in London including in the capital markets and financial services businesses. Brett completed
the Foundations for Directors course at the AICD and is a solicitor in New South Wales and England
and Wales (UK).
Elisabeth Ellis
BScLLB (Hons), GAICD
Elisabeth Ellis resigned as Company Secretary on 9 December 2022.
3. Directors’ and Committee meetings
The following table shows meetings held between 1 April 2022 and 31 March 2023 and the number
attended by each Director or Committee member.
Board
Audit, Risk and
Compliance
People, Culture and
Remuneration
Nomination
Director
Eligible Attended
Eligible1 Attended
Eligible2 Attended
Eligible Attended
C Carnabuci
P Cross
C Kovacs
S Malcolm
G Murdoch
S Sargent*
D Snedden
10
6
10
123
12
6
10
10
6
10
12
12
6
10
4
2
5
5
5
3
5
4
3
5
5
5
3
5
6
3
6
6
6
3
6
6
4
6
6
5
3
6
4
1
4
4
4
3
4
4
2
4
4
4
3
4
1. Ms Carnabuci and Mr Malcolm are not members of the Audit, Risk and Compliance Committee but are invited to attend as observers.
2. Mr Murdoch, Ms Kovacs and Mr Malcolm are not members of the People, Culture and Remuneration Committee but are invited to attend
as observers.
3. Mr Malcolm, Mr Murdoch and Mrs Cross appointed as a subcommittee to consider the release of the half-year results and the full-year results.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 39
Directors’ Report
4. Directors’ interests
The relevant interest of each Director and their associates in the equity of the Company as at the date
of this Report is outlined in the table below. All interests are ordinary shares unless otherwise stated.
Type
C Carnabuci
Ordinary
P Cross
Ordinary
C Kovacs
Ordinary
Opening
balance
46,832
Nil
73,000
Issued
Acquired
Lapsed/
Disposed
–
–
–
100,000
–
S Malcolm
Ordinary
2,467,0212
148,4933
43,0704
G Murdoch
Ordinary
S Sargent
Ordinary
D Snedden
Ordinary
345,000
118,444
100,000
–
–
–
–
–
–
Closing
balance
46,8321
100,000
73,000
2,658,6845
345,000
118,4446
100,000
–
–
–
–
–
–
There were no disposals of shares by the Directors during the year or share transactions post year end.
1. As at 31 March 2023, Ms Carnabuci’s holding is under the threshold required by the Non-Executive Director Minimum Shareholding Policy.
Ms Carnabuci will supplement her holding if still required once trading the Company’s securities is permitted at conclusion of the closed period.
2. Opening balance ordinary shares held by Mr Malcolm comprise 1,739,115 issued ordinary restricted shares under the ESP LTI, 727,906 issued
ordinary shares under LTI, 480,770 issued ordinary shares by way of personal holdings and vested STI and retention awards.
3. Ordinary shares issued to Mr Malcolm on 7 June 2022 upon vesting of FY21 STI performance rights.
4. Ordinary shares purchased on market 19 December 2022.
5. In addition to this closing balance, Mr Malcolm holds STI performance rights of 191,739 and LTI performance rights of 997,120.
6. As at 15 August 2022 when final interest notice lodged at the ASX.
5. Principal activities
The Group’s principal activity during the year was the provision of international payments and foreign
exchange services.
6. Unissued shares under rights or options
At the date of this report unissued shares of the Group under rights or options are:
Performance rights
LTI – Options
Expiry Date
Exercise Price Number of Shares
N/A
10 Jun 24
–
1.56
5,034,724
176,586
All unissued shares are ordinary shares of the Company.
40 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
7. Dividends and distributions
No dividends have been paid or determined by the Company during and since the end of the year.
8. Operating and financial review
A summary of financial results for the year ended 31 March 2023 is outlined below.
As required for statutory reporting purposes, the consolidated financial statements of the
Consolidated Entity have been presented for the financial year ended 31 March 2023.
The Group’s statutory financial information for the year ended 31 March 2023 and for the comparative
year ended 31 March 2022 present the Group’s performance in compliance with statutory reporting
obligations.
To assist shareholders and other stakeholders in their understanding of the Group’s financial
information as a publicly listed entity, additional underlying financial information for the years
ended 31 March 2023 and 31 March 2022 is provided in the Operating and Financial Review section
of this Report.
The reconciliation and the underlying information has not been audited.
Statutory results
Net operating income1
EBITDA 2
Less depreciation and amortisation
Less interest expense
Add share of profit of equity-accounted investees, net of tax
Less income tax expense
Net profit after tax
EBITDA margin
2023
$’000
214,092
56,290
(13,172)
(5,869)
244
(6,082)
31,411
26.3%
2022
$’000
147,027
43,227
(9,970)
(717)
121
(7,649)
25,012
29.4%
Earnings per share (basic) (cents)
12.91cps
10.29cps
Growth
%
45.6%
30.2%
32.1%
718.5%
(20.5)%
25.6%
–
–
1. Net operating income, a non-IFRS measure, is the combination of Fee and trading income and Fee and commission expense and Interest income.
2. Earnings before interest expense, taxation, depreciation and amortisation (EBITDA) is a non-IFRS, unaudited measure.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 41
Directors’ Report
Underlying results
The results were impacted by non-operating expenses in respect of Firma Foreign Exchange
Corporation. This included $4.5 million of acquisition costs and $2.25 million related to integration.
The table below sets out the underlying financial results for the year ended 31 March 2023 which have
been adjusted for these non-operating expenses.
Net operating income
Underlying EBITDA
Less depreciation and amortisation
Less interest expense
Add share of profit of equity-accounted investees, net of tax
Less income tax expense
Underlying net profit after tax
Underlying EBITDA margin
2023
$’000
214,092
62,437
(12,578)
(5,869)
244
(6,633)
37,601
29.2%
2022
$’000
147,027
44,500
(9,970)
(717)
121
(7,649)
26,285
30.3%
Underlying earnings per share (basic) (cents)
15.46cps
10.81cps
The following table reconciles underlying earnings measures to statutory results.
Growth
%
45.6%
40.3%
26.6%
718.5%
(13.3)%
43.1%
–
–
Year ended 31 March 2023
Statutory profit
One-off expenses/non-operating
Underlying profit
EBITDA
$’000
56,290
6,147
62,437
Profit
before tax
$’000
Income tax
$’000
37,493
6,741
44,234
6,082
551
6,633
Profit
after tax
$’000
31,411
6,190
37,601
FY23 was another record year for OFX with Net Operating Income of $214.1 million, up 45.6% driven by
strong performance in the Corporate segment and the successful acquisition of Firma. Corporate
revenue was up 89.4% (up 11.1% Ex Firma) driven by strong margin performance and growth in
transactions. OLS was down (6.9)% with the market soft post the strong growth during the pandemic
and the impact of higher inflation and interest rates impacting consumer confidence. Enterprise was
up 2.1% and High value Consumer was flat with a drop in high value use cases in 2H23 following a very
strong 1H23.
All regions achieved strong revenue growth with APAC up 7.4%, North America up 105.7% and EMEA up
27.2%. Growth rates across the regions were achieved through increased volumes in the Corporate
segment and the successful acquisition of Firma.
Underlying operating expenses were up 47.9% largely attributable to the Firma acquisition in addition
to investments in sales, marketing and technology.
Investment in our single global platform delivered improved payment speed and transparency
for our clients, strong risk management processes and controls and continued enhancements to
client experience.
42 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
Underlying EBITDA for the year was $62.4 million, up 40.3% resulting in an underlying EBITDA margin
of 29.2%
The Group continues to maintain a strong balance sheet with Net Cash Held of $93.8 million as at
31 March 2023.
As at 31 March 2023
Cash and cash equivalents
Deposits due from financial institutions
Total cash
Cash held for subsequent settlement of client liabilities
Net cash held
Collateral and bank guarantees
Net available cash
9. Strategy
2023
$’000
436,861
25,613
462,474
368,670
93,804
(26,407)
67,397
2022
$’000
301,870
25,144
327,014
242,767
84,247
(41,604)
42,643
With over $206 billion annual revenue, the cross-border payments industry is a significant market.
And as more than 70% of the global market share is still with banks and Incumbent money services
businesses, our best opportunity is to access this huge market whilst our four target client segments
switch to non-banks specialists.
Our vision at OFX is to become the ‘World’s leading cross border payments specialist’.
To do so, we must differentiate and our teams must be in place to deliver for our clients.
Our distinctive CVP (customer value proposition) is to deliver a competitively priced and trusted client
experience, by combining both digital + human support and expertise, as we solve for the complexity
and anxiety of moving money globally.
Our teams are part of a global operating model; strong regional teams supported by strong global
functions.
This is underpinned by a single global platform that powers four superior capabilities versus our
competition:
• Payments excellence
• Client service
• Risk management
• World class team
We are building a more valuable company by investing in healthy revenue growth with strong EBITDA
margins, by maintaining a high recurring revenue, generating revenue beyond spot FX, and by growing
revenue from Corporate, Online Seller and Enterprise clients faster than our Consumer clients.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 43
Directors’ Report
Lastly, to successfully execute our strategy, we align our investments with six key strategic pillars.
We will continue to focus on delivery of critical initiatives against each of these pillars, including:
• B2B segment: grow our B2B client segment;
• Geographic expansion: investing to expand in North America and Europe;
• Scalable platform: continuing to improve our technology platform to enable operations at scale,
lowering costs and enhancing security for our clients and shareholders;
• Risk management: building trust through strong risk management across regulators, clients,
bankers and partners;
• People: greater emphasis to build our Global Operating Model so that our teams can serve client
locally and grow their global career with OFX;
• Organic and inorganic: we continue to invest in organic growth, as well as look at, in a disciplined
way, opportunities for consolidation and to deliver products beyond spot FX.
10. Risks
The potential risks associated with the Group’s business are outlined below. This list does not cover
every risk that may be associated with the Group, and the occurrence or consequences of some of the
risks described are partially or completely outside the control of the Group, its Directors and senior
management. There is also no guarantee or assurance that the risks will not change or that other risks
will not emerge.
• Regulatory Change – The international payments market is highly regulated. There is a risk that any
new or changed regulations, for example, banking and financial services licensing and anti-money
laundering regulations, could require the Group to increase its spending on regulatory compliance
and/or change its business practices, which could adversely affect the Group’s profitability. There is
a risk that regulatory change could also make it uneconomical for the Group to continue to operate
in places where it currently does business.
• Regulatory Compliance – There is a risk that the Group may not comply with all applicable laws or
have adequate compliance controls in place to manage or prevent breaches of applicable laws.
A breach of compliance may require the Group to pay significant penalties if it fails to maintain or
follow adequate procedures in relation to on-boarding of clients or to detect and prevent money
laundering, financing of terrorism, breaches anti-bribery laws or contravention of sanctions
regulations globally, as has been imposed on other companies from time to time. In addition, there
is a risk that evidence of a serious failure by the Group to comply with laws may cause one or more
of the counterparty banks, partnerships or affiliates to cease business with the Group. The Group has
a range of system and process controls in place to mitigate this risk and invests significant resources
in risk management and compliance. All employees undertake compulsory compliance training on a
regular basis.
• Information technology (IT) – The Group depends on the performance, reliability and availability
of its technology platform and communications systems. There is a risk that these systems may be
adversely affected by events including damage, equipment faults, power failure, computer viruses,
misuse by employees or contractors, cyber-attack/s on group technology and communication
providers, external malicious interventions such as hacking, fire, natural disasters or weather
interventions.
44 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
• Events of that nature may cause part of the Group’s technology platform, apps or websites to become
unavailable. While the Group invests heavily in mitigating this risk, there is a risk that the Group’s
operational processes or disaster recovery plans may not adequately address every potential event
and its insurance policies may not cover loss or damage that the Group suffers as a result of a system
failure. This in turn could reduce the Group’s ability to generate income, impact client service and
confidence levels, increase cost burden, impact the Group’s ability to compete and cause damage to
the Group’s reputation and, potentially, have a material adverse effect on its financial position and
performance. Further, there is a risk that potential faults in the Group’s technology platform could
cause transaction errors that could result in legal exposure from clients, damage to the Group’s
reputation or cause a breach of certain regulatory requirements (including those affecting any
required licence) and, potentially, have a material adverse effect on the Group’s financial position
and performance. The Group maintains disaster recovery plans and controls to mitigate this risk.
• Data security and privacy – The Group’s business relies on the effective processing and storage of
information using its core technologies and IT systems and operations. If the Group’s technology and
data security controls are ineffective, the Group’s IT systems could be exposed to successful cyber-
attacks which may result in the unauthorised access to or loss of critical or sensitive data, loss of
information integrity, breaches of obligations or client agreements and website, system outages and
regulatory actions. Any significant interruptions to these operations would impact the Group’s ability to
operate and could result in business interruption, the loss of client and revenue, damaged reputation
and weakening of competitive position and could therefore adversely affect the Group’s operating
and financial performance. The Group is subject to privacy laws in Australia and other jurisdictions in
which it conducts its business. The Group operations in the United Kingdom and the European Union
are required to comply with the respective implementations of the UK and the European Economic
Area versions of the General Data Protection Regulations. Similarly, the Group operations in North
America are subject to relevant US and Canadian laws, including the California Consumer Privacy Act.
In each of the relevant jurisdictions, these laws generally regulate the collection, use and processing
of personal information. Such laws affect the way the Group can collect, use, analyse, transfer and
share personal information that is central to many of the services the Group provides. Any actual or
perceived failure by the Group to comply with relevant privacy laws and regulations may result in the
imposition of fines, investigations, enforceable undertakings or other penalties, client losses, a
reduction in existing services, and limitations on the development of technology and services making
use of such data. Any of these events could adversely affect the Group’s business, financial condition
and financial performance as well as cause reputational damage. The Group has a range of system
and process controls in place to mitigate this risk pursuant to a Board approved Cyber Strategy.
Employees undertake compulsory privacy and cyber security awareness training.
• Relationships with banking counterparties – The Group relies on banks to conduct its business,
particularly to provide its network of local and global bank accounts and act as counterparties in the
management of foreign exchange and interest rate risk. There is a risk that one or more of these
banks may cease to deal with the Group. The loss of a significant banking relationship, or the loss of a
number of banking relationships at the same time, particularly as the Group grows, could prevent or
restrict the Group’s ability to offer foreign exchange and payment services in certain jurisdictions,
increase operating costs for the Group, increase time taken to execute and settle transactions and
reduce the Group’s ability to internally net out transactions, all of which could materially impact
profitability. In addition, there is a risk that a loss or reduction in the services provided by the Group’s
banks could restrict its ability to actively manage its foreign exchange and interest rate risk in certain
jurisdictions. As a result, the Group may have to increase the level of foreign exchange and interest
rate exposure within existing operations, reduce or withdraw certain services it offers to clients or
change its business model to reduce the level of risk within the business to acceptable levels, all of
which could also materially impact profitability. The Group maintains a panel of banking
counterparties and actively manages its relationships with these counterparties.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 45
Directors’ Report
• Mistaken Payment – There is a risk that, due to system or human errors in the processing of
transactions, the Group may transfer an incorrect amount of funds or transfer funds to an incorrect
recipient. In these instances, the Group may be required to take steps to recover the funds involved
and, in certain circumstances, be liable for amounts paid that were in not in accordance with client
instructions. The Group has a range of system and process controls in place to mitigate this risk.
• Fraud – There is a risk that, if the Group’s services are used to transfer money in connection with a
fraud or theft (including identity theft), the Group may be required to take steps to recover the funds
involved and may in certain circumstances be liable to repay amounts that it accepted for transfer,
even after it has made the corresponding international payment. In some cases the Group’s insurance
does not indemnify for this loss. The Group has a range of fraud prevention controls in place to
mitigate this risk.
• Foreign exchange rate fluctuations – Changes in value in currencies can affect the average
transaction size entered into by the Group’s clients and, potentially, the number of transactions.
The Group offers services in over 50 currencies and movements in any of them may adversely impact
the Group’s performance. In addition, as the Group reports in Australian Dollars, a strengthening
of the Australian Dollar against other currencies will also have a negative impact on the reported
earnings of the Group that relate to its income earned in geographies outside Australia (which may
increase over time, potentially substantially). Similarly, a weakening of the Australian Dollar as against
USD, CAD, GPD, NZD, HKD and SGD will have a negative impact on the costs of the Group that relate
to the costs incurred in geographies outside Australia. To mitigate against this risk, the Group’s
treasury risk management process monitors and reports performance against defined limits.
Overall exposure of the Group is managed within limits set by the Board.
• Credit – The Group enters into forward exchange contracts with some of its clients and its banking
counterparties. There is a risk that if a client or counterparty fails to make payment upon settlement
of these contracts, the Group would have a credit exposure to the value of the mark-to-market value
of the transaction. The Group mitigates against this risk by retaining the discretion to require that an
advance payment is made, however, the Group remains exposed to the mark-to-market value of the
transactions.
• Liquidity – There is a risk that the Group may have insufficient liquidity to meet financial obligations
or commitments due to miscalculation of liquidity requirements or failure to receive funds from
counterparties on time. The Group has a robust process in place to mitigate this risk, including
regular forecasts of the Group’s liquidity requirements and continuous review of currency
requirements in operating jurisdictions.
• Competition – The market for the provision of foreign exchange and payment services is highly
competitive. The major existing competitors of the Group include banks, money transfer
organisations and other specialist providers. New competitors, services and business models which
compete with the Group are likely to arise in the future. There is a risk that a substantial increase in
competition for any of these reasons could result in the Group’s services becoming less attractive to
consumer or business clients, partnerships. This may require the Group to increase its marketing or
capital expenditure or require the Group to lower its spreads or alter other aspects of its business
model to remain competitive, any of which could materially adversely affect the Group’s profitability
and financial condition. A key aspect of the Group’s business model and competitive advantage is its
ability to offer many clients more attractive exchange rates and transaction fees than they regularly
receive from competitors such as many major banks. Competitors could potentially lower their
spreads and transaction fees to compete with the Group, which could result in a reduction in, or
slowing in the growth of, the Group’s transaction turnover, a reduction in margins, increased
marketing expense or a failure to capture or reduction in market share. Any of these outcomes could
materially impact the Group’s income and earnings. The Group regularly reviews its market position
and competitiveness as part of its strategic and business planning process.
46 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
• Intellectual property risk – The Group relies on certain intellectual property (IP) such as
trademarks, licences, software and proprietary technology to conduct its business. There is a risk
that the actions taken by the Group to register and protect its IP may not be adequate, complete
or enforceable, and may not prevent the misappropriation of the Group’s IP and proprietary
information. If the Group’s IP has been compromised, the Group may need to protect its rights by
initiating litigation such as infringement or administrative proceeding, which may be time consuming,
unpredictable and costly. Any failure by the Group to protect its IP rights may adversely impact the
Group’s business, operations and future financial performance. There is a risk that the Group may
infringe the IP rights of third parties. Third parties may enforce their IP rights and prevent the Group
from using the IP, which may adversely impact the business and operations of the Group, and damage
the reputation of the Group. To mitigate against this risk the Group actively manages its trademarks
and obtains licences in respect of third party IP rights used by the business.
• Reputational damage – Maintaining the strength of the Group’s reputation is important to retaining
and increasing the client base and preserving healthy relationships with its regulators, banks,
partners and other stakeholders. There is a risk that unforeseen issues or events may adversely
affect the Group’s reputation. This may impact on the future growth and profitability of the Group.
The Group actively maintains its relationships with regulators, banks, partners and other
stakeholders to mitigate against this risk.
11. State of affairs and significant changes in the state of affairs
In the Directors’ opinion there have been no significant changes in the state of affairs of the Group
during the year. A further review of matters affecting the Group’s state of affairs is contained on
pages 41-43 in the Operating and Financial Review.
12. Events subsequent to balance date
Refer to the share buyback disclosed in Note 21 to the Financial Report.
OFX announced an investment to acquire Paytron Holdings Pty Ltd, a Sydney-based B2B payments
company that has developed a platform that supports modern accounts receivable workflow, multi-
currency account and card capabilities. This is in line with OFX’s focus on expanding its services for
B2B clients and accelerates its current investment program. OFX will acquire 100% of the company
including its client base and all its intellectual property. The transaction is projected to close in 1H24
and the consideration is comprised of up to 11.25 million deferred performance securities subject to
development and financial vesting conditions.
13. Outlook
The Group continues to position OFX for growth and is focused on continuing to execute on our key
strategic goals:
• Servicing four core segments being Corporate, Consumer, Online Seller and Enterprise clients in all
our key regions;
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 47
Directors’ Report
• Continued investment in the client experience – both digital + human and reliable, scalable systems;
and
• Accelerating our medium-term growth through investments in Online Sellers and Enterprise.
We have a strong balance sheet, superior service delivery, an experienced and ambitious team and a
clear mandate from our Board and our shareholders to grow sustainably.
14. Likely developments and expected results
Other than the information provided in the operating and financial review, further information on
likely developments has not been included as it may unreasonably prejudice the Group.
15. Insurance and indemnification of Directors and Officers
The Directors of the Company and such other officers as the Directors determine are entitled to
receive the benefit of an indemnity contained in the Constitution of the Company, to the extent
allowed by the Corporations Act 2001 (Cth).
The Company has entered into a standard form deed of indemnity, insurance and access with the
Directors, the Company and Secretary of the Company and with Directors and Officers of each Group
entity against liabilities they may incur in the performance of their duties as Directors of the Company,
to the extent permitted by the Corporations Act 2001 (Cth). The indemnity operates only to the extent
that the loss or liability is not covered by insurance.
During the year the Company has paid premiums in respect of contracts insuring the Directors and
Officers of the Company and each other Group entity against liability incurred in that capacity to the
extent allowed by the Corporations Act 2001 (Cth). The terms of the policies prohibit disclosure of the
details of the liability and the premium paid.
16. No officers are former auditors
No officer of the Consolidated Entity has been a partner of an audit firm or a Director of an audit
company that is the auditor of the Company and the Consolidated Entity for the financial year.
17. Non-audit services
KPMG continues in office as the external auditor in accordance with section 327C of the Corporations
Act 2001 (Cth).
The Audit, Risk and Compliance Committee is required to pre-approve all audit and non-audit services
provided by the external auditor. The committee is not permitted to approve the engagement of the
auditor for any non-audit services that may impair or appear to impair the external auditor’s
judgement or independence in respect of the Company.
48 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Directors’ Report
The Board has considered the non-audit services provided during the year by the auditor and, in
accordance with written advice provided by resolution of the Audit, Risk and Compliance Committee,
is satisfied that the provision of those non-audit services during the year by the auditor is compatible
with, and did not compromise, the auditor independence requirements of the Corporations Act
2001 (Cth) for the following reasons:
• All non-audit services were subject to the corporate governance procedures adopted by the Group
and have been reviewed by the Audit, Risk and Compliance Committee to ensure that they do not
impact the integrity and objectivity of the auditor.
• The non-audit services provided do not undermine the general principles relating to auditor
independence as set out in APES 110 Code of Ethics for Professional Accountants, as they did not involve
reviewing or auditing the auditor’s own work, acting in a management or decision-making capacity for
the Group, acting as an advocate for the Group or jointly sharing risks or rewards.
Details of the amounts paid or payable to KPMG for audit and non-audit services provided during the
year are set out in Note 27 to the Financial Statements. Total non-audit remuneration paid to KPMG is
summarised below for FY23.
Other advisory services
Total remuneration for non-audit services
2023
$
35,404
35,404
2022
$
247,994
247,994
18. Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations
Act 2001 (Cth) in relation to the audit for the year ended 31 March 2023 is on page 72 of this report.
19. Chief Executive Officer/Chief Financial Officer declarations
The Chief Executive Officer and the Chief Financial Officer have given the declarations to the Board
concerning the Group’s Financial Statements and other matters as required under section 295A(2) of
the Corporations Act 2001 (Cth).
20. Rounding off
The Company is of the kind referred to in Australian Securities and Investments Commission
Legislative Instrument 2016/191, relating to the rounding off of amounts in the Directors’ Report.
In accordance with that Instrument, amounts in the Directors’ Report and the financial statements
are rounded off to the nearest thousand dollars, unless otherwise stated.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 49
Remuneration Report
for the financial year ended 31 March 2023
Fellow shareholders,
On behalf of your Board and as Chair of the People, Culture and Remuneration Committee, I am
pleased to present the Remuneration Report for the year ended 31 March 2023. The report sets out
OFX’s approach to remuneration for Executives and Non-Executive Directors and, in particular, the
links between OFX’s remuneration framework, business performance and strategy.
FY23 in Review
OFX has had another year in which financial and operating targets have been either met or exceeded.
Due to very strong performance in the first half of the year, financial guidance to the market was
upgraded and the Company finished the year with strong performances across regions and client
segments and continued to make significant progress in enhancing its platforms to support the scale,
speed, and safety of transactions for our clients.
The acquisition of Firma has proved very valuable with an underlying EPS accretion of greater than
30%, comprised of strong revenue, and better than expected cost synergies. We are executing on
an integration program, drawing on people from both organisations and we expect to complete the
integration of client platforms and teams in the year ahead.
Despite the challenges that have arisen in the global economic environment, the Global Executive
Team has been effective at managing the risks for the business and building a more valuable company.
In addition to meeting challenging financial targets, they have continued to invest in technology that
has resulted in faster payments, digital tools that enhance our risk management capability and more
secure platforms. They also continued to invest in the development of our people and this is reflected
in a 6% increase in employee engagement.
Remuneration outcomes for FY23 reflect the performance of the business and our people and our
position to be able to continue to grow both organically and inorganically. A summary of FY23
remuneration outcomes is as follows:
• Short-term incentive funding was determined to be 102.7% of target, representing continued
effective execution against financial and operating targets approved at the commencement of
the financial year;
• The FY20 Long Term Incentive Plan vested with 28% loan forgiveness of the Loan Share Plan.
Shares vested in June 2022, however, remain restricted until the Executive’s outstanding loan
balance is repaid in full which must occur by 31 March 2024 (see detail in section 5.3 of the report);
• Based on market analysis and in the context of rising wages in all regions, a 4% budget has been
allocated for salary increases in FY24; and
• There have been no increases to Non-Executive Director fees.
50 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Remuneration Report
Remuneration Changes in FY24
As outlined in the FY23 remuneration report, the Board approved an increase in the variable
remuneration opportunity of members of the Global Executive Team, stepped over two years,
to ensure our remuneration offering is competitive and maintains alignment between Executive
remuneration and shareholder returns. In FY24, the second increase will take effect (refer section 7).
As foreshadowed last year, the Board also introduced a minimum shareholding requirement for
Executives, further aligning the interests of the Executives with the interests of the Company’s
shareholders and this minimum shareholding requirement is applied to LTI awards from FY23 onwards.
Further details of these remuneration changes are contained in the report.
Overall, the Board continues to be very pleased with the Company’s results and the continued
momentum we are seeing in the transition of OFX to a more global, valuable company. We wish to
commend our people for their ongoing commitment to serving and growing our clients as well as
enhancing our platforms to enable our clients to transact securely and reliably in the context of ever-
increasing risks.
Douglas Snedden
People, Culture and Remuneration Committee
23 May 2023
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 51
Remuneration Report
Introduction
The Directors present the remuneration report for the Company and its controlled entities (collectively
the Group or OFX) for the financial year ended 31 March 2023 prepared in accordance with the
requirements of the Corporations Act 2001 (Cth) (the Corporations Act) and as audited as required by
section 308(3C) of the Corporations Act.
1. Key Management Personnel
The remuneration report sets out the remuneration arrangements for the Key Management Personnel
(KMP) of the Group, which comprises all Directors (Executive and Non-Executive) and those Executives
who have authority and responsibility for planning, directing and controlling the activities of the
Group. In this report ‘Executive KMP’ refers to members of the Global Executive Team that are KMP
and includes Mr Skander Malcolm, as an Executive Director, Ms Selena Verth as Chief Financial Officer
(CFO) and Mr Mark Shaw as Chief Operating Officer (COO). Table 1 below details the Group’s KMP
during FY23 and up to the date of this report.
Table 1.
Name
Non-Executive Directors
Connie Carnabuci
Patricia Cross*
Cathy Kovacs
Grant Murdoch
Steven Sargent**
Douglas Snedden
Executive Director
Skander Malcolm
Other Executive KMP
Selena Verth
Mark Shaw
Role
Non-Executive Director
Chair and Non-Executive Director
Non-Executive Director
Non-Executive Director
Chair and Non-Executive Director
Non-Executive Director
Managing Director and Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operating Officer (COO)
* Patricia Cross was appointed as a Director on 20 July 2022 and elected Chair on 11 August 2022.
** Steven Sargent resigned 11 August 2022.
52 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Remuneration Report
Remuneration strategy
2. Remuneration framework and link to business strategy
2.1 Remuneration strategy
Figure 1.
Our vision
To be the world’s leading value-added cross border payments specialist
Client needs we solve
Transfer money
internationally
from A-B
Manage
volatility risk
of FX exposure
International
payments flows
integrated in
my processes
Collect/use my
money wherever
I buy or sell in the
world, like a local
Offer FX/
cross-border
payments to
my clients
Culture and values
Our culture is enabled by our core values that drive the behaviour in our organisation and
support us to Make a Difference to our clients, our shareholders and to each other
We’re better
together
We are stronger
as one team
Inspire client
confidence
We keep the client
at the centre of
everything we do
Always keep
learning
Share your expertise
and learn from
others
Get the right
stuff done
Own it, execute
it, deliver the
exceptional
Push
boundaries
Discover what
is possible
Remuneration strategy
To attract, retain and motivate talented people to drive a great culture that delivers
on our business strategy and contributes to sustainable long-term returns
Culture
Performance
Competitive
Align rewards to risk
management, high
performance and
a diverse and
inclusive culture
Reward performance
that supports execution
of our strategy and
aligns Executive and
shareholder interests
Attract, retain and
motivate appropriately
qualified and
experienced people
who will contribute
positively to OFX’s
financial and operational
performance
Clear and simple
Simple structures
with clear
expectations
Sustainable
Motivate Executives to
deliver results with both
shor t and long-term
horizons, at the same
time demonstrating
OFX’s values through
their behaviours
and actions
Fixed remuneration
Variable, performance-based remuneration
Reward for size and complexity of the role,
as well as skills and experience
Includes short-term, long-term and sales incentives
or commissions, and one-off grants of equity or cash
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 53
Remuneration Report
2.2 Executive KMP remuneration components
OFX’s Executive KMP remuneration consists of a total fixed remuneration (TFR) component, a short-
term incentive (STI) component and a long-term incentive (LTI) component as set out in Table 2 below.
Table 2.
Remuneration
component
Total Fixed Remuneration
(TFR)
Short-Term Incentive
(STI)
Long-Term Incentive
(LTI)
Purpose
Reward for size and
complexity of the role, as
well as skills and experience
Link to
performance
Motivation to drive a great
culture and deliver on the
business strategy
Performance
measures
Accountabilities that support
the execution of the business
strategy
Annual ‘at risk’ incentive
opportunity awarded on the
achievement of performance
conditions over a 12-month
period
STI outcome determined by:
• Company scorecard that
establishes the level of STI
funding; and
• Strategic individual
performance measures that
are specific to the Executive
KMP’s role, are equally
weighted and, along with
evaluation of behaviour
against the OFX values,
support an overall
performance rating
Company performance
measures for FY23:
• Underlying NOI (30%)
• Underlying EBT (30%)
• Strategic Investments (20%)
• ESG (20%)
Assessment of threshold/
target/maximum levels
follows agreed targets, with
the vesting scale ranging
from 25% through to 125%
Assessment of individual
performance measures
support an overall
performance rating
multiplier ranging from
0% to 120%
Reward that aligns with
longer-term OFX
performance and
shareholder outcomes
Performance measures that
are designed to encourage
Executive KMP to focus on
the key performance drivers
which underpin sustainable
growth in shareholder value
over the longer term
Company performance
measures for FY23:
• Underlying EPS CAGR (50%)
• Absolute TSR CAGR (50%)
Assessment of threshold/
target/maximum levels
follows agreed targets, with
the vesting scale ranging
from 25% through to 150%
54 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Remuneration Report
Remuneration
component
Total Fixed Remuneration
(TFR)
Short-Term Incentive
(STI)
Long-Term Incentive
(LTI)
Alignment
Set to attract, retain and
motivate the right talent to
deliver on OFX’s strategy and
contribute to OFX’s financial
and operational
performance
Clearly defined and
measurable performance
conditions designed to
support the financial and
strategic outcomes of the
Group which in turn
translates into shareholder
return
Delivery
Competitive market based
fixed remuneration (base
salary + statutory
superannuation)
Delivered as a combination
of cash and deferred equity
issued as performance rights
Encourages sustainable
long-term value creation by
linking a significant portion
of remuneration to OFX’s
share price and returns
generated for shareholders
The LTI plan for Executives
grants rights to fully paid
ordinary shares in OFX
(performance rights)
Performance rights allocated
in two tranches (50% in each
tranche) that operate
independently
Vesting schedule for each of
the two tranches is detailed
in Figure 2
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 55
Remuneration Report
2.3 Remuneration delivery and mix
The Executive KMP remuneration mix is structured so that a substantial portion of remuneration is
delivered as OFX securities through either deferred STI or LTI. Total remuneration correlates to
performance. The following Figure 2 (which is not to scale) sets out the remuneration structure and
delivery timing for Executive KMP.
Figure 2. Remuneration delivery
Remuneration delivery
Year 1
Year 2
Year 3
1. Fixed Remuneration
100%
Salary and
other benefits
(including
statutory
super-
annuation)
2. STI
Cash STI
(Target is 115% of TFR for CEO
and 65% of TFR for each other
Executive KMP)
CEO
EXECUTIVE KMP
50% 50%
30% 70%
CEO: 50% cash.
KMP: 70% cash.
50% deferred
into
performance
rights.
30% deferred
into
performance
rights.
12 months
deferred
vesting for 50%
of deferral
24 months
deferred vesting
for 50% of
deferral
56 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Remuneration Report
Remuneration delivery
Year 1
Year 2
Year 3
3. LTI
(115% of TFR for CEO and 60%
of TFR for each other Executive
KMP)
Subject to
three-year
performance
period
FY23 Vesting schedule for each of the two
tranches is as follows:
Performance
Measure
% of Performance
Rights that vest
FY23 issuance in
two tranches
Below threshold
Threshold
Between threshold
and target
Target
Between target
and stretch
Stretch and above
Nil
17%
17-67%
(straight line)
67%
67-100%
(straight line)
100%
Remuneration mix
FY23 Remuneration Outcomes1
Figure 3 below reflects both the target mix1 of pay for each Executive KMP as well as actual mix of pay
based on remuneration outcomes (i.e. the relative weight of each component as a percentage of total
remuneration) for FY23.
Figure 3. Remuneration Mix – Target and Actual for FY23
CEO (Target)
30%
17.5%
17.5%
35%
CEO (Actual)
27%
18.5%
18.5%
36%
CFO (Target)
44%
20%
9%
27%
CFO (Actual)
42%
23%
10%
25%
COO (Target)
44%
COO (Actual)
44%
20%
22%
9%
27%
9%
25%
0%
20%
40%
60%
80%
100%
Fixed
STI (cash)
STI (deferral)
LTI
1. Target mix accounts for partial loan forgiveness under the ESP for ‘on target’ performance.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 57
Remuneration Report
3. Company performance FY23
5-year Group performance
The Group’s FY19-FY23 annual financial performance measures compared with short-term and long-
term remuneration outcomes are set out in Table 3 below.
Table 3.
Performance Metrics1
2019
2020
2021
2022
2023
Net operating income2
$118.7m
$125.2m
$117.9m
$147.0m
$214.1m
EBITDA
Underlying EBITDA
Underlying EBT
Basic earnings per share3
Underlying basic earnings
per share4
$31.6m
$36.0m
$26.0m
7.07cps
$36.9m
$38.2m
$26.1m
8.37cps
$28.1m
$29.1m
$16.6m
4.96cps
$43.3m
$44.5m
$33.8m
$56.3m
$62.4m
$43.6m
10.29cps
12.91cps
8.45cps
8.80cps
5.26cps
10.81cps
15.46cps
Dividend per share5
$0.05640
$0.0563
$0.0316
Closing share price
$1.67
$1.24
$1.10
N/A
$2.43
N/A
$1.57
1. These are not calculations based on constant currency.
2.
Net operating income, a non-IFRS measure, is the combination of ’Fee and trading income’ and ‘Fee and commission expense’ and
’Interest income’.
3. For the calculation of EPS refer to Note 7 of the financial statements.
4. Underlying basic earnings per share is the basic earnings per share calculation utilising the underlying NPAT of the Group.
5. This represents dividends distributed in the period.
58 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Remuneration Report
4. Statutory disclosures
Table 4 details the remuneration paid to Executives (KMP) and has been prepared in accordance with
the accounting standards.
Table 4.
Year
Executive KMP
Short-term
benefits
Post-
employ-
ment
benefit
Long-
term
benefits
Share-based payments
Cash
salary
and
fees
$
Cash
bonus
$
Super-
annua-
tion
$
Annual
and Long
service
leave
$
Deferred
STI –
Perform-
ance Rights
$
STI –
Retention
and
One-off
awards1
$
LTI – ESP
and
Perform-
ance
Rights2
$
Total
$
S Malcolm
S Verth
M Shaw
2023
696,000 468,255
24,861
34,144
453,867
–
567,441 2,244,568
2022
676,000 442,477
23,100
12,311
193,575
6,222
485,102 1,838,787
2023
396,500 216,585
24,861
18,156
74,486
18,807
121,077
870,472
2022
379,000 185,986
23,100
2023
375,833 187,239
24,861
2022
355,000 158,999
23,100
5,290
6,413
4,793
36,306
38,286
109,259
777,227
64,277
18,545
114,405
791,573
35,268
20,004
101,956
699,120
Total KMP remuneration
2023 1,468,333 872,079
74,583
58,713
592,630
37,352
802,923 3,906,613
2022 1,410,000 787,462
69,300
22,394
265,149
64,512
696,317 3,315,134
1. Ms Verth’s awards also include remuneration of $18,807 in respect of 35,848 one-off performance rights that were granted on 30 July 2021
with a vesting date of 31 May 2023, and 21,916 one-off performance rights that were granted on 15 June 2022 with a vesting date of 15 June 2023.
There are performance conditions that reflect specific outcomes relating to transactions attached to these vesting. Mr Shaw’s awards also
include remuneration of $18,545 in respect of 10,958 one-off performance rights that were granted on 15 June 2022 with a vesting date of
15 June 2023. There are performance conditions that reflect specific outcomes relating to a transaction attached to this vesting.
2. The Executive Share Plan (ESP) includes the FY20 and FY21 LTI issuances. Mr Malcolm’s remuneration includes $104,814 in respect of the ESP,
and $462,627 in respect of LTI performance rights. Ms Verth’s remuneration includes $26,153 in respect of the ESP, and $94,924 in respect of
LTI performance rights. Mr Shaw’s remuneration includes $24,504 in respect of the ESP, and $89,901 in respect of LTI performance rights.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 59
Remuneration Report
5. Performance and remuneration outcomes for FY23
5.1 Fixed remuneration
Regular reviews of remuneration levels are a key accountability of the Board, and a comprehensive
market review was conducted for each Executive KMP as part of the FY22 remuneration review process
which resulted in the amendments to base salary for Executive KMP in FY23, effective 1 June 2022, as
shown in Table 5 below.
Table 5.
Executive KMP
S Malcolm
S Verth
M Shaw
% increase
3.6%
5.5%
7.0%
5.2 Short-Term Incentive (STI)
The STI Plan is aligned to shareholder interests by:
Encouraging Executive KMP to achieve year-on-year
performance in a balanced and sustainable manner
through a mix of financial and non-financial
performance measures.
Mandatory deferral of STI award into performance
rights acting as both a retention mechanism and
providing the opportunity for malus or clawback if this
is ever warranted. 50% of STI is deferred for the CEO
and 30% of STI is deferred for other Executive KMP.
Figure 4.
Total Fixed
Remuneration
(TFR)
X Target
STI %
(TFR is base
salary outside
Australia)
Company Performance
measures
X
Individual Performance
measures
X
= STI
Min = 0%
Max = 150%
Company performance
objectives set and
reviewed by the
Board annually
Threshold
Target
Max
Payout
25%
100%
125%
Below
Mostly meets
Meets
Exceeds
Outstanding
1
2
3
4
5
0%
75%
100%
110%
120%
60 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Remuneration Report
FY23 STI outcomes
Individual performance measures
In determining individual STI awards, the CEO provides recommendations to the People, Culture and
Remuneration Committee in respect of the CEO’s direct reports (which includes all Executive KMP
except the CEO). The Committee reviews these recommendations and also evaluates the CEO and his
direct reports’ performance and recommends to the Board any fixed pay changes and incentive
awards for the CEO and the CEO’s direct reports. Recommendations take into account the STI pool
funding percentage (refer Table 8) and the performance of the CEO and his direct reports against
individual and business performance goals (refer Table 7 for outcomes in respect of the Executive KMP)
as well as the behaviour demonstrated by the CEO and his direct reports in their role consistent with
the Company values. Individual goals for the CEO and his direct reports align to the financial and
strategic objectives used to determine STI pool funding.
STI achieved by Executive KMP for FY23 is set out in Table 6 below:
Table 6.
STI at
target
$
Company
Performance
Measures
%
Executive
KMP
S Malcolm 828,990
S Verth
273,885
M Shaw
260,452
102.7%
102.7%
102.7%
Individual
Performance
%
STI
achievement
%
STI
achievement
$
STI portion
deferred1
$
Cash
$
110%
110%
100%
113.0%
113.0%
102.7%
936,511
468,255
468,255
309,408
216,585
267,484
187,239
92,822
80,245
1. STI deferred portion is calculated as STI achieved multiplied by deferral percentage and is a non-statutory measure.
Table 7 below provides a summary of the way in which each individual Executive KMP’s FY23
performance was evaluated.
Table 7.
S Malcolm
S Verth
M Shaw
Technology and Product team effectiveness
Exceeds
N/A
N/A
Firma integration
Outstanding
Exceeds
Exceeds
Growth in new Corporate clients
Meets
N/A
Treasury
M&A strategy and execution
Scalable, efficient platform delivering payments excellence
Global Assurance Controls Program
N/A
N/A
N/A
N/A
Exceeds
Exceeds
N/A
N/A
Enterprise clients
Meets
Meets
N/A
N/A
N/A
Meets
Meets
Meets
Overall Individual Performance
Exceeds
Exceeds
Meets
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 61
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Table 8.
Bonus Pool
Calculation
Underlying NOI
Underlying EBT
Strategic Investments
ESG
TOTAL
Weighting
%
30%
30%
20%
20%
100%
FY23
Actual
$m
214.1
43.6
Payout
rate
%
104.9%
125.0%
93.8%
75.0%
Funding1
%
31.48%
37.5%
18.75%
15.0%
102.7%
1. Funding rate is calculated as payout rate multiplied by weighting of Company performance measures.
FY22
Actual
$m
147.0
33.8
YOY
%
45.6%
29.0%
Company funding of 102.7% for STI for FY23 represents consistent strong business performance over
the course of the financial year in which financial and operating targets have been either met or
exceeded. FY23 STI funding reflects:
• Outperformance on financial metrics whereby targets were exceeded. The performance of Firma was
included in the financial targets post acquisition;
• Product benefits, and improved efficiency of payments for metrics related to safe, reliable and
scalable platforms;
• Significant outperformance on synergies realised from Firma integration;
• Further enhancements to our control environment and risk management capability; and
• Progress on our ESG objectives for FY23.
Table 9. STI-related equity
Executive KMP
S Malcolm
S Verth
M Shaw
Held at
1 April 20221
Granted
during
the year2
Vested
during
the year
Lapsed
during
the year
Held at
31 Mar 2023
148,593
191,739
(148,593)
62,563
25,115
56,456
40,486
(26,715)
(25,115)
–
–
–
191,739
92,304
40,486
1. All holdings at 1 April 2022 were granted during FY22.
2. Grants in FY23 occurred on 12 August 2022 for Mr Malcolm and 10 June 2022 for Ms Verth and Mr Shaw, with a 12-month vesting period and fair
value at grant date of $2.68 for Mr Malcolm and $2.41 for Ms Verth and Mr Shaw. Ms Verth’s grant also includes 21,916 performance rights and
Mr Shaw’s grant also includes 10,958 performance rights that were granted on 15 June 2022 both with a fair value at grant date of $2.13.
Ms Verth’s and Mr Shaw’s one-off performance rights have a vesting date 15 June 2023. There are performance conditions that reflect specific
outcomes relating to a transaction attached to the vesting.
62 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
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Vested and Realised Remuneration
Table 10 below is a voluntary non-statutory disclosure of the realised remuneration of Executive KMP.
Not all amounts have been prepared in accordance with accounting standards and this information
differs from the statutory remuneration table in Section 4 which shows the expense for the vested and
unvested awards in accordance with accounting standards. The below figures are unaudited.
Table 10.
Executive
KMP
S Malcolm
S Verth
M Shaw
Year
2023
2022
2023
2022
2023
2022
Cash salary
and fees
$
Cash
bonus
$
Super-
annuation
$
Vested STI
deferral1
$
Vested
retention
$
Vested LTI
– Executive
Share Plan2
$
Total
$
696,000
468,255
24,861
337,306
0
927,434
2,453,856
676,000
442,477
23,100
232,600
112,813
0
1,486,990
396,500
216,585
24,861
60,643
0
231,399
929,988
379,000
185,986
23,100
37,986
112,813
0
738,885
375,833
187,239
24,861
57,011
0
213,624
858,568
355,000
158,999
23,100
42,082
112,813
0
691,994
1. These figures reflect the prior year STI deferred into share rights which have vested. These shares are subject to a holding lock under which
they cannot be traded for 12 months from vesting date. The value is derived as the number of vested shares multiplied by the share price on
vesting date.
2. These figures reflect the FY20 LTI that vested on 9 June 2022. The value is derived as the number of vested shares multiplied by the share price
on vesting date, minus the total value of the outstanding loan on the award.
5.3 Long Term Incentive (LTI)
LTI Outcomes for FY23
For the FY20 LTI and FY21 LTI, Executive KMP were offered a single grant of shares that were subject
to performance conditions. The value of the LTI grants is determined by reference to a set percentage
of TFR. The number of shares that each Executive KMP received was determined using the
following formula:
Total Fixed Remuneration x Grant % x Gross-up Factor (2) divided by the share acquisition price
The Gross-up Factor replaced the previously used Fair Value Factor (Black-Scholes).
For the FY20 LTI and FY21 LTI, as approved by shareholders at the Company’s AGM in August 2018, in
order to reward achievement against performance metrics, part of the loan may be forgiven at the end
of the 3-year performance period upon the achievement of specified performance conditions. For the
FY20 grant the performance conditions were met which resulted in a 28% loan forgiveness of the
Executive KMP’s outstanding loan balance. These shares vested on 9 June 2022, however, remain
restricted until the outstanding loan balance is repaid in full which must occur by 31 March 2024.
None of the Executive KMP have repaid their loan balance during FY23.
For the FY23 LTI, Executive KMP were offered a single grant of performance rights as outlined in
Table 11 below. The value of the grants is determined by reference to a set percentage of TFR.
The number of performance rights that each Executive KMP received was determined by dividing
the grant value by a 10-day VWAP following the release of the FY22 full year results.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 63
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Australian Accounting Standards require the ESP awards be treated as options for accounting purposes
due to the structure of the plan. The number and value of notional options and performance rights
held by Executive KMP under the Executive Share Plan (ESP) and the Global Equity Plan (GEP) during
the financial year ended 31 March 2023 is set out in Tables 11 and 12.
Table 11.
LTI Issuances
Grant date
Vesting date Expiry date
Weighted
average fair
value at
grant date
Performance
achieved
% vested
FY20 share-
based loan
FY21 share-
based loan
FY22 long-term
incentive grant1
FY23 long-term
incentive grant 2
11 June 2019
9 June 2022
6 June 2024
0.38
Yes
100%
9 June 2020
9 June 2023
9 June 2025
0.28
To be determined
15 June 2021
15 June 2024
15 June 2024
1.08
To be determined
15 June 2022
15 June 2025
15 June 2025
1.47
To be determined
–
–
–
1. For Mr Malcolm, the FY22 long-term incentive grant was issued on 27 August 2021 with a weighted average fair value at grant date of 1.38.
2. For Mr Malcolm, the FY23 long-term incentive grant was issued on 12 August 2022 with a weighted average fair value at grant date of 2.04.
Table 12. LTI-related equity
Loan share award + Performance rights
Held at
1 April 20221
Granted
during
the year2
Vested
during
the year3
Lapsed
during
the year
Held at
31 March
2023
Value of LTI
equity at
grant date
$
Executive KMP
S Malcolm
S Verth
M Shaw
2,245,343
490,892
(801,763)
560,336
149,928
(200,044)
523,364
142,849
(184,677)
–
–
–
1,934,472
1,741,979
510,220
368,855
481,536
348,881
1. For Mr Malcolm, includes 801,763 granted in FY20 ESP, 937,352 granted in FY21 ESP and 506,228 granted in FY22 LTI GEP. For Ms Verth, includes
200,044 granted in FY20 ESP, 233,886 granted in FY21 ESP and 126,406 granted in FY22 LTI GEP. For Mr Shaw, includes 184,677 granted in FY20
ESP, 219,853 granted in FY21 ESP and 118,834 granted in FY22 LTI GEP.
2. Awards granted during the year include performance rights under FY23 LTI GEP. There were no awards granted under the ESP in the period.
3. Includes FY20 ESP shares that vested during the period which remain restricted until the outstanding loan balance is repaid in full which must
occur by 31 March 2024. None of the Executive KMP have repaid their loan balance during FY23.
64 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
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6. Loans to Executive KMP for FY20 and FY21 LTI grants
The details of non-recourse loans on foot to Executive KMP under the ESP are set out in Table 13 below.
Under the ESP that was in effect until FY22, Executive KMP acquired shares in the Company funded by
a non-recourse loan from the Company. These loans are provided for the sole purpose of Executive
KMP acquiring shares in the Company. The amount of the loan is equal to the issue price multiplied by
the total number of shares issued. The loan is ‘interest free’ in that there is no annual interest charge
to the participant on the loan. However, the notional value of this interest is taken into account in the
overall structure of the program. The participant is obliged to pay a portion of the post-tax value of any
dividends received during the loan term toward repayment of the loan amount. To access the shares,
participants must repay their loan in full. Following the end of the vesting period, assuming the
earnings threshold is achieved, the participant can either repay the loan directly or sell some of their
shares and apply the proceeds to repay the loan. Shares remain restricted and can only be sold for the
purposes of repaying the loan until the loan is repaid, and it is important that the loan obligation is
always taken into account alongside the face value of shares under the ESP awards.
Table 13.
Held at
1 April
2022
$
Advances
during
the year
$
Loan
forgiveness
$
Repayments
during
the year
$
Held at
31 March
2023
$
Interest
free value
$
Highest
indebtedness
during the
year
$
Executive KMP
S Malcolm 2,506,967
S Verth
M Shaw
625,517
582,830
–
–
–
(343,992)
(85,828)
(79,235)
–
–
–
2,162,975
1,194,160
2,506,967
539,689
228,511
503,595
155,361
625,517
582,830
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 65
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7. Changes to Executive remuneration for FY24
During FY22, the Board continued to consider the effectiveness of the Short-Term Incentive (STI) Plan
and the Long-Term Incentive (LTI) Plan for Executives. In particular, with the intent of ensuring that OFX
has competitive remuneration in place for the Executive team and that remuneration is aligned to
market practice. As part of the review, the Board approved changes to the variable reward opportunity
for Executives to be implemented over two years, the first of which occurred in FY23 and the next will
occur in FY24.
A review of market practice indicated that a 50:50 weighting of STI and LTI at target would provide a
more appropriate remuneration mix for Executives. As such, for Direct Reports of the CEO, the intent is
to achieve a remuneration mix of 40%:30%:30% for Total Fixed Remuneration:STI:LTI from FY24
onwards. This will be achieved by a stepped adjustment of STI and LTI opportunity as follows:
• Increasing the STI opportunity from 60% to 65% in FY23 and to 75% in FY24; and
• Increasing the LTI opportunity from 40% to 60% in FY23 and to 75% in FY24.
To achieve the same 50:50 weighting between STI and LTI at target for the CEO, an increase of the LTI
target from 92% to 115% occurred in FY23, resulting in a remuneration mix of 30%:35%:35% for Total
Fixed Remuneration:STI:LTI from FY23 onwards.
8. Executive KMP service agreements
Contractual arrangements for Executive KMP
The key employment terms and conditions for Executive KMP as at 31 March 2023 are set out in
Table 14 below.
Table 14.
Contract Components
CEO
Other Executive KMP
Basis of contract
Ongoing (no fixed term)
Ongoing (no fixed term)
Notice period
6 months
6 months
Post-employment
restraints
Maximum 6 months post-employment
non-compete and non-solicitation
restraint
Maximum 12 months post-employment
non-compete and non-solicitation
restraint
Treatment of STI and LTI
Upon termination, if the CEO is
considered a good leaver, the CEO will
be entitled to a pro-rata STI award.
Board discretion applies to the
treatment of any unvested LTI.
Upon termination, if the Executive KMP
is considered a good leaver, the
Executive KMP may be entitled to a
pro-rata STI award. Board discretion
applies to the treatment of any
unvested LTI.
66 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
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9. Remuneration governance
9.1 Role of the People, Culture and Remuneration Committee
The People, Culture and Remuneration Committee is responsible for providing advice and
recommendations to the Board in relation to the Company’s remuneration arrangements for Non-
Executive Directors, the CEO, and Executives, including total fixed remuneration, bonus, equity-based
awards and termination payments. In addition, it is responsible for regularly reviewing the Company’s
remuneration framework to ensure that it continues to align to business objectives in a manner that is
consistent with the long-term sustainability of the Company and a broad range of stakeholder interests
over the long-term (for example, client, community, regulator and investor interests) as well as
considering those aspects of the Company’s remuneration policies and packages, including equity-
based incentives, which should be subject to shareholder approval. The Committee is also responsible
for reviewing the Company’s policies and practices as they relate to diversity and inclusion, talent
acquisition, retention, learning and development and termination. The Charter of the People, Culture
and Remuneration Committee is available on the Group’s website at www.ofx.com/en-au/investors/
corporate-governance/.
To assist in performing its duties, the People, Culture and Remuneration Committee seeks independent
advice from external consultants on various remuneration-related matters. The People, Culture and
Remuneration Committee follows protocols around the engagement and use of external remuneration
consultants to ensure compliance with relevant legislation as it relates to Executive remuneration.
During the 2023 financial year, Godfrey Remuneration Group and Guerdon Associates were engaged to
provide independent benchmarking data on Executive remuneration and Non-Executive Director fees
to assist with Executive base salary and Non-Executive Director fee recommendations. The external
advisors did not provide recommendations and the data was used as an input to decision-making by
the People, Culture and Remuneration Committee and the Board only.
9.2 Board discretion
The Company has a structured and objective approach to remuneration. However, the People, Culture
and Remuneration Committee and the Board are able to exercise judgement and discretion as is
required to provide remuneration outcomes for Executive KMP that appropriately reflect the
performance of the Group and the achievement of real and tangible results that are consistent with
the Group’s strategic priorities, are in line with Group values, and enhance shareholder value.
9.3 Cessation of employment
Subject to local legislation, participants are not eligible for any STI cash payment or any deferred STI
which are subject to restriction if they are terminated due to misconduct or poor performance, nor in
general, if they resign or retire without a managed transition approved by the Board. In certain
circumstances, allowed for under Executive Service Agreements, the Board may deem an Executive KMP
to be a ‘good leaver’ and exercise discretion to allow eligibility for a pro-rata cash payment in respect
of the current performance year and may determine that deferred STI previously awarded is retained.
In general, all ESP shares are forfeited and surrendered in full settlement of the loan if a participant
ceases employment prior to the end of the performance period. All unvested performance rights are
not forfeited if a participant ceases employment prior to vesting date, however, the Board has absolute
discretion in appropriate circumstances to deem whether some or all of an Executive KMP’s
performance rights are retained.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 67
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9.4 Malus and clawback
The Board retains wide discretion to adjust formulaic incentive outcomes up or down (including to
zero) prior to their finalisation. Malus refers to the exercise of downward discretion. Clawback refers to
the Board’s power to recover awards or payments that have been made, granted or vested (including
the forfeiture of vested equity awards, or the demand of the return of shares or the realised cash value
of those shares) where the Board determines that the benefit obtained was inappropriate (for example,
as a result of fraud, dishonesty or breach of employment obligations by the recipient or any employee
of the Group). The Board has not encountered circumstances in this or prior periods that have required
the application of the clawback provisions.
9.5 Change of control
If a change of control occurs prior to the vesting of share rights that are not subject to performance
hurdles the Board has discretion to bring forward vesting dates where it considers it appropriate to do
so. If a change of control occurs prior to the vesting of STI or LTI that is subject to performance hurdles,
the Board has discretion to determine that some or all of the unvested shares or performance rights
will vest. In exercising this discretion, the Board may have regard to any matter the Board considers
relevant, including the extent to which the vesting conditions have been satisfied (or estimated to have
been satisfied) at the time the change of control occurs or the proportion of the performance period
during which the vesting conditions are tested has passed at the time the change of control occurs.
9.6 Minimum shareholding requirements for Non-Executive Directors and Executives
A minimum shareholding requirement for Non-Executive Directors was introduced in FY19 and for
Executives in FY23. The minimum shareholding requirement seeks to align the interests of the Board,
Executives and shareholders.
Each Non-Executive Director must establish and maintain a level of share ownership equal to one
times’ the Non-Executive Director’s annual base fee. For the purposes of calculating the minimum
holding, this does not include any higher fee for acting as Chair or for membership of any Board
Committees. The minimum holding must be reached within three years of appointment. All Non-
Executive Directors either met the minimum requirement or were on track to meet it within the
required timeframe. As at the Balance Date, Ms Carnabuci’s holding is below the threshold required
by the Non-Executive Director Minimum Shareholding Policy and Ms Carnabuci will supplement
her holding (if required) at the conclusion of the closed period in accordance with the Securities
Trading Policy.
The parameters of the minimum shareholding requirement for Executives are that:
• the CEO must establish and maintain a level of share ownership equal to one times’ his annual base
salary;
• the other Executives must establish and maintain a level of share ownership equal to 0.5 times their
annual base salary; and
until these requirements are met, the Executive must retain 25% of any shares that vest via the LTI Plan.
68 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
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9.7 Securities Trading Policy
All Directors and employees are required to comply with the Group’s Securities Trading Policy in
undertaking any trading in the Company’s shares and may not trade if they are in possession of any
inside information. Directors, members of the Global Executive Team, members of the Senior
Leadership Team, members of the Finance Team and Specified Employees must apply for and receive
written approval before trading in OFX securities. All employees are prohibited from dealing in OFX
securities during a Closed Period which precedes the release of the half year and full year results and
the annual general meeting. The Securities Trading Policy prohibits employees who participate in any
equity-based plan from entering into any transaction in relation to unvested securities which would
have the effect of limiting the economic risk of an unvested security.
10. Non-Executive Director remuneration
10.1 Fee framework
The Board seeks to set fees for the Non-Executive Directors that reflect the demands which are made
on and the responsibilities of the Directors, and at a level which will attract and retain Directors of the
highest quality.
Non-Executive Director fees will be reviewed from time to time and they may seek the advice of
external remuneration advisors for this purpose. There were no changes in fees for Non-Executive
Directors during FY23.
10.2 Fee pool
The maximum payable to be shared by all Non-Executive Directors is currently set at $1,000,000 per
annum, which was approved by shareholders at the General Meeting prior to the Company’s listing on
the ASX in 2013. To preserve independence, Non-Executive Directors do not receive any equity as part
of their remuneration and do not receive any performance-related compensation. Non-Executive
Directors receive superannuation contributions where required by Superannuation Guarantee
legislation.
Table 15. Fees applicable for FY23
Role
Chair fee1
Base Director fee
Committee Chair fee
Committee Member fee2
1. The Chair’s fee includes any fee in respect of Committee membership.
2. For each committee other than the Nomination Committee.
$
230,000
100,000
25,000
15,000
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 69
Remuneration Report
Statutory Non-Executive Director fees for the year ended 31 March 2023
Details of the fees paid to the Non-Executive Directors for the year ended 31 March 2023 are outlined
in Table 16 below:
Table 16.
Non-Executive Directors
C Carnabuci
P Cross
C Kovacs
G Murdoch
S Sargent
D Snedden
Total Non-Executive
Director remuneration
Director shareholdings
Year
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Cash salary and fees
$
Superannuation
$
104,158
107,123
145,168
–
104,158
104,665
113,247
113,766
76,831
209,330
126,804
127,418
670,366
662,302
10,842
7,877
15,243
–
10,842
10,335
11,753
11,234
7,798
20,670
13,196
12,582
69,674
62,698
Total
$
115,000
115,000
160,411
–
115,000
115,000
125,000
125,000
84,629
230,000
140,000
140,000
740,040
725,000
Details of the Directors’ and their affiliates’ shareholdings in OFX Group Limited are set out in Section 4
of the Directors’ Report of this report.
70 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Remuneration Report
11. Additional Disclosures
Transactions of KMP
Shares held in the Company by KMP at the end of the financial year are set out in Table 17 below.
Table 17.
Executive KMP
S Malcolm
S Verth
M Shaw
Held at
1 April
20221
727,906
162,591
187,925
Acquisition
Disposals
ESP and GEP
vested2
Held at
31 March
2023
43,070
–
–
–
–
–
950,356
1,721,332
226,759
209,792
389,350
397,717
1. For Mr Malcolm includes 554,796 shares vested in the GEP, for Ms Verth includes 156,791 shares vested in the GEP and for Mr Shaw includes
135,703 shares vested in the GEP.
2. For Mr Malcolm includes 801,763 shares vested in the FY20 ESP, for Ms Verth includes 200,044 shares vested in the FY20 ESP and for Mr Shaw
includes 184,677 shares vested in the FY20 ESP that remain restricted until the outstanding loan balance is repaid in full which must occur by
31 March 2024. None of the Executive KMP have repaid their loan balance during FY23.
12. Outlook
The Group will continue to review and adjust its reward mechanisms annually, as required, to ensure
that its long-term growth aspirations are met.
This Directors’ Report is made in accordance with a resolution of Directors.
On behalf of the Board, 23 May 2023.
Patricia Cross
Chair
23 May 2023
Skander Malcolm
Chief Executive Officer and Managing Director
23 May 2023
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 71
Auditor’s Independence
Declaration
72 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of OFX Group Limited I declare that, to the best of my knowledge and belief, in relation to the audit of OFX Group Limited for the financial year ended 31 March 2023 there have been: i.no contraventions of the auditor independence requirements as set out in theCorporations Act 2001 in relation to the audit; andii.no contraventions of any applicable code of professional conduct in relation to the audit.KPM_INI_01 KPMG Shaun Kendrigan Partner Sydney 23 May 2023 Consolidated Statement of Comprehensive Income
for the year ended 31 March 2023
Fee and trading income
Fee and commission expense
Net income
Interest and other income
Net operating income
Employment expenses
Promotional expenses
Information technology expenses
Professional fee expenses1
Bad and doubtful debts
Other operating expenses2
Earnings before interest expense, tax,
depreciation and amortisation (EBITDA)
Depreciation and amortisation expense
Interest expense
Share of profit of equity-accounted investees, net of tax
Net profit before income tax
Income tax expense
Notes
3
3
3
4
4
13,14,17
17,18
23
5
2023
$’000
225,007
(14,772)
2022
$’000
158,015
(11,391)
210,235
146,624
3,857
403
214,092
147,027
(105,977)
(16,791)
(11,476)
(8,430)
(2,541)
(12,587)
(66,618)
(16,543)
(8,288)
(3,602)
(116)
(8,633)
56,290
43,227
(13,172)
(5,869)
244
37,493
(6,082)
(9,970)
(717)
121
32,661
(7,649)
Net profit attributable to ordinary shareholders
31,411
25,012
Other comprehensive income
Other comprehensive income that may be reclassified to profit and loss
Exchange differences on translation of foreign operations, net of hedging
Cash flow hedges – effective portion of change in fair value
1,244
2,914
4,158
125
(1,980)
(1,855)
Total comprehensive income attributable to ordinary shareholders
34,878
23,157
Earnings per share attributable to ordinary shareholders
Basic
Diluted
7
7
Cents
12.91
12.43
Cents
10.29
9.95
The above Consolidated Statement of Comprehensive Income should be read in conjunction with the
accompanying notes.
1. Comparative information has been restated to conform with presentation in the current period.
2. Other operating expenses includes Occupancy expenses of $1,698,000 (2022: $642,000) which were previously disclosed separately on the
Consolidated Statement of Comprehensive Income.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 73
Consolidated Statement of Financial Position
as at 31 March 2023
Assets
Cash held for own use
Cash held for settlement of client liabilities
Deposits due from financial institutions
Derivative financial assets
Prepayments
Other receivables
Equity accounted investees
Property, plant and equipment
Intangible assets
Right-of-use assets
Current tax assets
Deferred tax assets
Total assets
Liabilities
Client liabilities
Derivative financial liabilities
Lease liabilities
Loans and borrowings
Other creditors and accruals
Current tax liabilities
Provisions
Deferred tax liabilities
Total liabilities
Net assets
Equity
Ordinary share capital
Retained earnings
Foreign currency translation reserve
Share-based payments reserve
Notes
2023
$’000
2022
$’000
8
8
8
10
9,23
23
13
14,19
17
6
8,9
10
17
18
15
16
6
21
68,191
368,670
25,613
52,666
7,565
7,365
5,173
2,143
103,119
12,725
1,116
7,083
59,103
242,767
25,144
34,385
5,595
5,473
5,028
1,236
19,873
6,402
–
–
661,429
405,006
375,678
246,611
34,125
13,959
65,183
10,980
–
14,332
3,062
517,319
144,110
31,600
106,978
382
5,150
27,117
8,348
–
7,697
47
8,918
2,375
301,113
103,893
28,576
75,567
(3,085)
2,835
Total equity attributable to shareholders
144,110
103,893
The above Consolidated Statement of Financial Position should be read in conjunction with the
accompanying notes.
74 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Consolidated Statement of Changes in Equity
for the year ended 31 March 2023
Balance at 31 March 2021
Net profit
Other comprehensive income
Total comprehensive income
Transactions with shareholders
in their capacity as shareholders:
Shares bought back
Shares issued under ESP/GEP
Employee share gift
Expenses related to
share-based payments
Balance at 31 March 2022
Net profit
Other comprehensive income
Total comprehensive income
Balance cash flow reserve
allocated to Goodwill
Transactions with shareholders
in their capacity as shareholders:
Shares bought back
Shares issued under ESP/GEP
Employee share gift
Expenses related to share-based
payments
Notes
Ordinary
share
capital
$’000
28,990
–
–
–
Retained
earnings
$’000
50,555
25,012
–
25,012
21
25
25
25
21
25
25
25
(2,655)
1,875
366
–
(414)
28,576
–
–
–
–
–
3,024
–
–
3,024
–
–
–
–
–
75,567
31,411
–
31,411
–
–
–
–
–
–
Foreign
currency
translation
reserve
$’000
Share-
based
payments
reserve
$’000
(1,230)
1,976
Total
equity
$’000
80,291
25,012
(1,855)
23,157
(2,655)
250
366
–
–
–
–
(1,625)
–
–
(1,855)
(1,855)
–
–
–
–
–
2,484
2,484
859
445
(3,085)
2,835
103,893
–
4,158
4,158
(691)
–
–
–
–
–
–
–
–
–
31,411
4,158
35,569
(691)
–
(1,068)
1,956
–
–
3,383
3,383
(691)
2,315
4,648
Balance at 31 March 2023
31,600
106,978
382
5,150
144,110
The above Consolidated Statement of Changes in Equity should be read in conjunction with the
accompanying notes.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 75
Consolidated Statement of Cash Flows
for the year ended 31 March 2023
Cash flows from operating activities
Profit from ordinary activities after income tax
Adjustments to profit from ordinary activities
Depreciation and amortisation
Interest expense
Share of profit of equity-accounted investees, net of tax
Movement in share-based payment reserve
Foreign exchange revaluation
Fair value changes on financial assets and liabilities through profit or loss
Movement in foreign currency translation reserve
Operating cash flow before changes in working capital
Changes in assets and liabilities
(Increase)/decrease in prepayments and other receivables
(Increase) in deferred income tax assets
(Increase)/decrease in cash held for settlement of client liabilities
Increase/(decrease) in amounts due to clients
Increase in accrued other creditors and accruals
Increase in deferred income tax liabilities
(Decrease)/increase in current tax liabilities
Increase in provisions
Decrease in current tax assets
(Decrease) in tax provision
Net cash flows from operating activities
Cash flows from investing activities
Payments for property, plant and equipment
Issuance of convertible loan
Payments for intangible assets
Acquisition of subsidiary, net of cash disposed of
(Decrease)/increase in cash deposited with financial institutions
Investments in equity-accounted investees
Net cash flows from investing activities
Cash flows from financing activities
Loan and borrowings
Payments for lease liabilities
Shares issued under ESP/GEP
Net cash flows from financing activities
Net increase in cash held for own use
Cash held for own use at the beginning of the year
Exchange gains on cash held for own use
Cash held for own use at the end of the year
Notes
2023
$’000
2022
$’000
31,411
25,012
13,172
5,869
(244)
3,382
2,745
(11,273)
1,515
46,577
(3,861)
(7,084)
(125,903)
129,067
3,283
687
(47)
5,414
–
(1,117)
47,016
(2,269)
–
(18,603)
(73,615)
(469)
–
(94,956)
59,934
(3,862)
1,956
58,028
10,088
59,103
(1,000)
68,191
9,970
717
(121)
2,484
(161)
(1,455)
(1,855)
34,591
696
–
(960)
(483)
3,436
1,136
47
2,859
6,273
–
47,595
(960)
(1,183)
(10,512)
–
1,975
(4,985)
(15,665)
–
(4,136)
(2,039)
(6,175)
25,755
33,454
(106)
59,103
13
9,21
14
14,19
23
18
17
Including cash held for settlement of client liabilities (classified as operating activities)
Cash held for settlement of client liabilities at the beginning of the year
Cash inflows from clients
Cash outflows to clients
Exchange gain on cash held for client liabilities
Cash held for settlement of client liabilities at the end of the year
Total cash and cash equivalents
8
8
242,767
241,807
35,605,461
32,968,852
(35,493,135)
(32,965,305)
13,577
368,670
436,861
(2,587)
242,767
301,870
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
76 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statements
for the year ended 31 March 2023
Results for the Year
Note 1. About this Report
Overview
OFX Group Limited (the Group or the Company) is a company limited by shares, incorporated
and domiciled in Australia. Its shares are publicly traded on the Australian Securities Exchange.
This financial report presents the consolidated performance, position and cash flows of the
Group for the year ended 31 March 2023 and was approved and authorised for issue by the Board
of Directors on 23 May 2023. The Group is for-profit for the purpose of preparing the financial
statements. The accounting policies explained in this report are consistent for all the periods
presented unless otherwise stated. The Directors have the power to amend and reissue the
financial report.
The financial report is a general-purpose financial report which:
• Is prepared in accordance with Australian Accounting Standards Board (AASB) and Interpretations
issued by the Australian Accounting Standards Board and the Corporations Act 2001 (Cth).
Consequently, this financial report has also been prepared in accordance with and complies with
IFRS as issued by the IASB
• Has been prepared under the historical cost convention except for derivatives and share-based
payments which are measured at fair value
• Is presented in Australian dollars with all values rounded to the nearest thousand dollars in
accordance with ASIC Legislative Instrument 2016/191 unless otherwise indicated
Critical estimates and judgements
Preparing the financial report requires judgement in applying the accounting policies and calculating
certain critical accounting estimates. The Group’s critical accounting estimates and significant
judgements are:
• Fair value of certain financial instruments (Note 10 and Note 11)
• Estimated credit losses on receivables (Note 12(c))
• Share-based payments (Note 23)
• Leases (Note 17)
• Impairment test of intangible assets and goodwill (Notes 14 and 19)
• Acquisition of subsidiary: fair value of the consideration transferred (including contingent
consideration) and fair value of the assets acquired and liabilities assumed (Note 19)
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 77
Basis of consolidation
The consolidated financial report comprises the assets and liabilities of all subsidiaries of the Group as
at 31 March 2023 and the results of all subsidiaries for the year then ended. A list of controlled entities
at year end is contained in Note 22.
Subsidiaries are all those entities over which the Group has the power to direct the relevant activities,
exposure to significant variable returns and the ability to utilise power to affect the Group’s own
returns. The determination of control is based on current facts and circumstances and is continuously
assessed.
Intercompany transactions, balances and unrealised gains on transactions between group companies
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
Investments in subsidiaries are accounted for at cost in the separate financial statements of OzForex
Limited (the intermediate holding company) in accordance with AASB 127 Separate Financial Statements.
Functional and presentation currency
Foreign operations are measured in the Group’s financial statements using the currency of the
primary economic environment in which the foreign operation operates (the functional currency).
The functional currencies of overseas subsidiaries are listed in Note 22.
The Group’s financial statements are presented in Australian dollars, which is the Group’s presentation
currency.
GST
Revenues, expenses and fixed assets are recognised net of the associated GST, unless the GST is not
recoverable from the relevant taxation authority. Receivables and creditors are presented including
the GST. The net GST recoverable from, or payable to, each taxation authority is presented in other
receivables or other payables.
Cash flows are presented including GST. The GST components of the cash flows arising from investing
or financing activities which are recoverable from, or payable to the taxation authority, are presented
as operating cash flow.
Corrections to prior period amounts
Certain comparative amounts in the Consolidated Statement of Profit or Loss and OCI, the
Consolidated Statement of Financial Position, Consolidated Statement of Cashflows and Consolidated
Statement of Changes in Equity have been restated, reclassified or re-presented, as a result of a
correction of a prior-period error in relation to the measurement of the Group’s investment in Equity
Accounted Investees.
New standards and interpretations not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for
31 March 2023 and have not been adopted early by the Group. These standards are not expected to
have a material impact on the Group’s financial statements.
78 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 2. Segment Information
The operating segments presented below reflect how senior management and the Board of Directors
(the chief operating decision makers) allocate resources to the segments and review their
performance.
The chief operating decision makers examine the performance both from a geographic perspective
and by client market segment. OFX regions are based on client location covering APAC, North America
and EMEA. These regions have been identified as reportable segments.
Each region serves Consumers, Corporates, Online Sellers and Enterprise (previously referred to as
international payment solutions) clients.
Segments are managed on an underlying basis. Segment EBITDA excludes $6.1 million of one-off items
(2022: $1.3 million) that are excluded from the underlying results.
Segment fee and trading income – 2022 v 2023 ($’000)
$250,000
$200,000
$150,000
$225,007
$158,015
$100,000
$83,691
$89,879
$88,689
$50,000
$0
$24,928
$31,714
$43,106
$6,290
$14,725
APAC
Europe
North America
Unallocated Items
Total
2022
2023
Segment EBITDA – 2022 v 2023 ($’000)
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
$62,433
$44,500
$20,488
$17,229
$20,235
$18,577
$6,568
$6,392
$6,290
$11,154
APAC
Europe
North America
Unallocated Items
Total
2022
2023
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 79
Notes to the financial statementsfor the year ended 31 March 2023 Segment underlying EBITDA
One-off expenses/non-operating
Group EBITDA
Depreciation and amortisation
Interest expense
Share of profit of equity accounted investees, net of tax1
Net profit before income tax
Income tax expense
2023
$’000
62,433
(6,143)
56,290
(13,172)
(5,869)
244
37,493
(6,082)
2022
$’000
44,500
(1,273)
43,227
(9,970)
(717)
121
32,661
(7,649)
31,411
25,012
Net profit
2023
APAC
$’000
Europe
$’000
North America
$’000
Unallocated
$’000
Consolidated
$’000
Segment assets
361,263
87,506
181,541
Intergroup eliminations
(45,647)
–
–
–
–
Deferred tax assets
Total assets
699,993
(45,647)
7,083
661,429
Segment liabilities
(248,662)
(90,965)
(152,477)
(67,800)
(559,904)
Intergroup eliminations
–
17,906
25,265
2,476
Deferred tax liabilities
Total liabilities
2022
Segment assets1
288,794
67,354
Intergroup eliminations
(38,096)
–
Deferred tax assets
Total assets
Segment liabilities
(170,880)
(76,418)
Intergroup eliminations
–
18,493
Deferred tax liabilities
Total liabilities
1. The comparative information has been restated to reflect a correction in the prior year.
80 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
86,954
–
(89,536)
19,603
–
–
–
–
45,647
(3,062)
(517,319)
443,102
(38,096)
–
405,006
(336,834)
38,096
(2,375)
(301,113)
Notes to the financial statementsfor the year ended 31 March 2023
Note 3. Net Operating Income
Fee and trading income
Fee and trading income consists of the realised foreign currency transaction margins and fees, as well
as changes in exchange rates between the time a client rate is agreed and a subsequent hedge
transaction is entered into by the Group.
Fee and trading income is presented inclusive of realised and unrealised income earned from the sale
of foreign currency contracts to clients.
Revenue from contracts with client is recognised upon settlement of foreign currency payments on
behalf of client in the amount that reflects the agreed foreign exchange margin and fee for the service.
Where the Group enters into contracts for forward delivery with its client, the Group also enters into
separate forward contracts with its banking counterparties in hedge transactions. These are
recognised on the Consolidated Statement of Financial Position and measured at fair value through
profit and loss.
Fee and commission expense
Fee and commission expenses are transactional banking fees and commissions paid to strategic and
referral partners.
Interest income
Interest income is recognised using the effective interest rate method, which spreads fees and costs
associated with an interest bearing receivable across its life.
Realised margin and fees on foreign exchange contracts
Unrealised gains on foreign exchange contracts
Revaluation of foreign exchange assets and liabilities
Fee and trading income
Fee and commission expense
Net income
Interest and other income
Net operating income
2023
$’000
2022
$’000
223,911
155,459
6,506
(5,410)
3,345
(789)
225,007
158,015
(14,772)
(11,391)
210,235
146,624
3,857
403
214,092
147,027
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 81
Notes to the financial statementsfor the year ended 31 March 2023 Note 4. Expenses
Employment expenses
Salaries and related costs including commissions
Share-based payments and employee share scheme
Defined contribution plan
Total employee compensation expense
Other employment expenses (on-costs, recruitment and staff
training)
Total employment expenses
Other operating expenses1
Compliance
Insurance
Travel
Other expenses
2023
$’000
2022
$’000
(90,443)
(55,251)
(3,471)
(6,050)
(2,843)
(3,917)
(99,964)
(62,011)
(6,013)
(4,607)
(105,977)
(66,618)
(2,729)
(3,161)
(1,372)
(5,325)
(2,658)
(2,640)
(325)
(3,010)
Total other operating expenses1
(12,587)
(8,633)
1. Comparative information has been reclassified to exclude Professional fee expenses of $642,000 which have been disclosed separately on the
Consolidated Statement of Comprehensive Income. Communication and Non-recoverable GST have also been included under Other Expenses.
82 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 5. Income Taxes
Income tax expense is the tax payable on the current period’s taxable income adjusted for changes
in deferred income tax. Changes in deferred tax assets and liabilities are due to temporary timing
differences and unused tax losses.
Current income tax is based on tax laws enacted or substantively enacted in each jurisdiction of the
Group’s operations at the end of the reporting period. If required, provisions are established for the
amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method at the tax rates expected to apply
when the assets are recovered or the liabilities are settled. Deferred tax assets and liabilities arise
on temporary differences between the tax base of assets and liabilities and their carrying amounts.
In addition, deferred tax assets may be recognised due to unused tax losses. Amounts are only
recognised to the extent it is probable future taxable amounts will be available to use those temporary
differences or tax losses.
Deferred tax assets and liabilities are offset when:
• There is a legally enforceable right to offset current tax assets and liabilities; and
• The deferred tax balances relate to the same taxation authority.
Current tax assets and liabilities are offset when:
• There is a legally enforceable right to offset; and
• There is an intention to settle on a net basis.
Current and deferred taxes attributable to amounts recognised directly in equity are also recognised
directly in equity.
Where there is uncertainty over income tax treatments the recognition and measurement of current or
deferred tax assets or liabilities is determined applying Interpretation 23 – Uncertainty Over Income Tax
Treatments. The Group believes its accruals for tax liabilities are adequate for all open tax years based
on its assessment, including interpretations of income tax treatments and prior experience.
Tax consolidation
The tax consolidation legislation was adopted by the Group as of 15 October 2013. As a consequence,
OFX Group Limited and its wholly-owned Australian controlled entities are taxed as a single entity.
The tax consolidated group’s tax year end is 31 March.
Offshore Banking Unit
OzForex Limited, a subsidiary of the Group, was declared an Offshore Banking Unit (OBU) on
10 October 2015. In accordance with Australian income tax legislation, assessable offshore banking
(OB) income derived by the OBU is taxable at a concessional rate of 10%. OB income includes revenue
earned on foreign exchange transactions with offshore counterparties, excluding those with any AUD
component. On 13 September 2021, the Australian Government confirmed the cessation of OBU
Regime which will cease to apply from the 2023-24 income year.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 83
Notes to the financial statementsfor the year ended 31 March 2023 a) Income tax expense
Current tax expense
Adjustments to current tax of prior years
Total current tax expense
Deferred income tax (benefit)/expense
Total income tax expense
b) Reconciliation of income tax expense to prima facie tax payable
Net profit before income tax
Prima facie income tax expense at 30% (2022: 30%)
Effect of lower tax rates in overseas jurisdictions
Decrease in tax expense as a result of operating as an OBU in the
current period
(Decrease)/Increase in tax expense as a result of change in tax laws
Non-deductible acquisition costs
Research and Development tax credits
Non-deductible share-based payment expenses
Other items
2023
$’000
12,877
83
12,960
(6,878)
6,082
2022
$’000
5,612
418
6,030
1,619
7,649
37,493
11,248
(2,229)
32,661
9,798
(554)
(1,531)
(2,550)
(781)
1,134
(1,621)
844
(982)
604
–
(611)
721
241
Total income tax expense
6,082
7,649
84 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 6. Deferred Income Tax Assets/(Liabilities)
Deferred income tax assets
The balance comprises temporary differences attributable to:
Provisions and accrued expenses
Corporate action costs deemed capital for taxation
Lease liabilities
R&D credit carry forward
Property, plant and equipment
Capital losses
Other
Total deferred income tax assets – before offset
Offset deferred income tax liabilities (refer Note 5 for accounting policy)
Net deferred income tax assets – after offset
Deferred income tax liabilities
The balance comprises temporary differences attributable to:
Intangible assets
Financial instruments
Right of use assets
Prepayments
Property, plant and equipment
Total deferred income tax liabilities – before offset
Offset deferred income tax assets (refer Note 5 for accounting policy)
Net deferred income tax liabilities – after offset
2023
$’000
2022
$’000
3,944
216
3,214
1,261
46
7,321
793
16,795
(9,712)
7,083
(4,467)
(4,977)
(2,607)
(70)
(653)
(12,774)
9,712
(3,062)
2,012
417
1,163
–
37
–
99
3,691
(3,691)
–
(2,426)
(2,720)
(478)
(124)
(318)
(6,066)
3,691
(2,375)
Net deferred income tax assets/(liabilities)
4,021
(2,375)
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 85
Notes to the financial statementsfor the year ended 31 March 2023
Note 7. Earnings per Share
Earnings per share
Basic earnings per share shows the profit attributable to each ordinary share. It is calculated as the net
profit attributable to ordinary shareholders divided by the weighted average number of ordinary
shares in each year.
Diluted earnings per share shows the profit attributable to each ordinary share if all the dilutive
potential ordinary shares had been ordinary shares.
There are no discontinued operations of the Group.
(a) Earnings per share
Basic
Diluted
(b) Earnings
Net profit attributable to ordinary shareholders used to calculate
basic and diluted earnings per share
(c) Weighted average number of shares
2023
Cents
12.91
12.43
$’000
31,411
2022
Cents
10.29
9.95
$’000
25,012
Weighted average number of ordinary shares used to calculate basic
earnings per share
Dilutive potential ordinary shares1
Number
Number
243,260,880
243,041,599
9,462,886
8,314,611
Weighted average number of ordinary shares used as the
denominator in calculating diluted earnings per share
252,723,766
251,356,210
1. Include issuances under the Executive Share Plan (ESP) and Global Equity Plan (GEP). Refer to Note 25.
86 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Financial Assets and Liabilities
Note 8. Cash and Cash Equivalents, Client Liabilities, and Deposits Due from
Financial Institutions
Cash and cash equivalents includes cash on hand and deposits held at short call with financial
institutions with an original maturity of less than 3 months (together, ‘cash held for own use’) and
cash held for subsequent settlement of client liabilities.
Cash held for subsequent settlement of client liabilities represent transactions in progress where
amounts have been received by the Group but the corresponding payment has not yet occurred.
They are unsecured and short term in nature and are recognised initially at their fair value. Client
liabilities are initially measured at amortised cost using the effective interest method and are shown
in cash net of client receivables which are recognised in other receivables (refer to Note 9). Gross client
liabilities total $375,678,000 as at 31 March 2023 (2022: $246,611,000).
Deposits due from financial institutions are primarily short-term deposits with an original maturity
of greater than 3 months, but less than 12 months, are accounted for at the gross value of the
outstanding balance and are held at amortised cost.
Cash held for own use
Cash held for settlement of client liabilities
Cash and cash equivalents
Deposits due from financial institutions
Cash held for subsequent settlement of client liabilities
Net cash held
Collateral and bank guarantees1
Net available cash2
1. Prior year comparative has been reclassified to conform with presentation in the current period.
2. Net available cash is a non-IFRS unaudited measure.
2023
$’000
68,191
368,670
436,861
2022
$’000
59,103
242,767
301,870
25,613
25,144
(368,670)
(242,767)
93,804
(26,407)
84,247
(41,604)
67,397
42,643
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 87
Notes to the financial statementsfor the year ended 31 March 2023 Note 9. Other Receivables (Current Assets)
Other receivables include client receivables, GST receivables and other debtors. Other debtors include
rental deposits, interest receivable and a convertible loan issued to an associate, the investment in
which is detailed at Note 22. Client receivables include amounts settled on behalf of client of the
Group, which are yet to be received. All receivables are recognised at amortised cost, less any
impairment. Details about the Group’s impairment policies and the calculation of the expected credit
loss allowance are provided in Note 12(c). Interest is recognised in the Statement of Comprehensive
Income using the effective interest method.
Client receivables
Provision for impairment
GST receivables
Other debtors
Other receivables
2023
$’000
7,008
(4,264)
303
4,318
7,365
2022
$’000
3,844
(455)
423
1,661
5,473
Note 10. Derivative Financial Instruments
Derivative instruments entered into by the Group include forward foreign exchange contracts.
They are principally used to offset foreign currency contracts with clients, cashflow hedges and
as hedges over the group’s net investment in foreign operations.
Derivatives are recognised at trade date and are initially and subsequently measured at fair value
through profit or loss. Movements in the carrying amounts of derivatives are recognised in net fee and
trading income within the Consolidated Statement of Comprehensive Income, except for movements in
derivatives used in the Group’s cash flow hedges and hedge of net investments in foreign operations,
which is recognised and measured in accordance with Note 12.
Value of forward contracts – assets
Value of forward contracts – liabilities
2023
$’000
52,666
2022
$’000
34,385
(34,125)
(27,117)
Net financial instruments at fair value
18,541
7,268
88 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 11. Fair Values of Financial Assets and Liabilities
OFX Group has categorised its financial instruments that are either measured in the Statement of
Financial Position at fair value or of which the fair value is disclosed, into a three-level hierarchy based
on the priority of the inputs to the valuation.
A financial instrument’s categorisation within the valuation hierarchy is based on the lowest level input
that is significant to the fair value measurement. Cash and cash equivalents, deposits due from
financial institutions, other receivables, client liabilities, other creditors and accruals are excluded from
the fair value hierarchy as these instruments are held at amortised cost. Their fair value approximates
the carrying value as they are short term in nature. Loans and borrowings are also excluded from the
fair value hierarchy as these are held at amortised cost using the effective interest rate method.
Level
Instruments
Valuation process
Level 1 – Traded in active markets
and fair value is based on recent
unadjusted quoted prices.
Level 2 – Not actively traded and
fair value is based on valuation
techniques which maximise the
use of observable market prices.
Level 3 – Not actively traded and
fair value is based on at least one
input which is not observable in
the market due to illiquidity or
complexity.
None – the Group does not
hold any of these instruments.
Not applicable.
Over-the-counter derivatives.
Forward foreign exchange
contract valuations are based
on observable spot exchange
rates and the yield curves of
the respective currencies.
None – the Group does not
hold any of these instruments.
Not applicable.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 89
Notes to the financial statementsfor the year ended 31 March 2023 Note 12. Financial Risk Management
The Group is exposed to the following risks, and manages this in the following ways:
Type of risk
How the risk is managed
Market risk – Market risk is comprised of both
foreign currency risk and interest rate risk.
Foreign currency risk – Arises from exposure
to changes in foreign exchange rates between
the time of agreeing rates with a client and
either a corresponding hedge being taken out
with a counterparty or an international payment
settlement. Settlement typically occurs between
12 to 24 hours after the deal is entered or up to
24 months later for forward contracts with clients.
The Group is also exposed to the interest rate
risk embedded in forward contracts offered
to its clients to lock in exchange rates up to
24 months in advance.
Interest rate risk – Exposure to non-traded
interest rate risk results from cash and term
deposits held in different currencies.
Credit risk – The risk that creditors (clients and
financial institutions) will not make payments
on their receivables and derivatives respectively,
when they fall due.
Liquidity risk – The risk that the Group is
unable to meet the obligations of its financial
liabilities when they are due.
To manage the movement in foreign exchange
rates, the Group aggregates transactions and
nets out buy transactions against sell
transactions.
The Group then enters into forward foreign
exchange hedging contracts with counterparty
banks once exposure to a single currency reaches
or exceeds a defined threshold.
Settlement of client liabilities between 12 and
24 hours of receipt of client cash results in low
exposure to non-traded interest rate risk.
The Group typically does not payout client deals
until associated funds have been received.
In exceptional circumstances, senior
management have the discretion to authorise
same-day payments, which can result in funds
being paid prior to clearance of client funds.
These transactions would only be approved for
clients with a low risk of default and are pro-
actively monitored to ensure timely settlement.
For forward deals part payments are required to
be made by clients. Active monitoring of client
balances ensures that adequate collateral is held.
The Group sets credit limits and obtains collateral
with well-rated banking counterparties as
security (where appropriate).
Regular forecasts of the Group’s liquidity
requirements. Surplus cash is maintained in
highly liquid instruments.
Continuous review of currency requirements in
operating jurisdictions. Active maintenance of
cash balances in currencies and geographical
locations necessary to fund these requirements.
Risk is managed on a globally consolidated basis for the Group. Risks in subsidiaries are subject to the
same risk acceptance policies as the Company.
90 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 (a) Market risk
The main component of the Group’s market risk is exposure to foreign exchange rate fluctuations.
The subsidiaries of the Group (Note 22) typically enter into transactions and recognise assets and
liabilities that are denominated in their functional currency.
The Group’s sensitivity to foreign exchange fluctuations risk by major currency held on the
Consolidated Statement of Financial Position is shown below:
Movement in exchange rate (basis points)1
+/-500
+/-500
+/-500
+/-500
31 March 2023
31 March 2022
CAD
EUR
GBP
NZD
SGD
USD
Other
Total
Sensitivity
of profit
before tax
$’000
Sensitivity
of equity
after tax
$’000
Sensitivity
of profit
before tax
$’000
Sensitivity
of equity
after tax
$’000
1,765
1,291
131
221
325
2
(140)
10
68
213
246
38
(87)
16
2,314
1,785
1
(25)
(91)
1
3
(62)
87
(86)
34
19
(12)
(2)
61
(315)
69
(146)
(b) Interest rate risk
The Group’s sensitivity to movements in interest rates is as follows.
Movement in interest rate (basis points)1,2
+/-200
+/-200
+/-200
+/-200
31 March 2023
31 March 2022
AUD
CAD
EUR
GBP
NZD
SGD
USD
Other
Total
Sensitivity
of profit
before tax
$’000
Sensitivity
of equity
after tax
$’000
Sensitivity
of profit
before tax
$’000
Sensitivity
of equity
after tax
$’000
2,444
1,835
892
546
972
308
224
2,017
487
7,889
669
451
775
229
184
1,564
373
6,080
2,316
191
510
1,104
224
304
1,241
650
6,540
1,739
143
399
853
163
252
839
491
4,879
1. Impact of positive movement shown. The impact of a negative movement is the inverse.
2. Prior year comparative has been reclassified to conform with presentation in the current period.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 91
Notes to the financial statementsfor the year ended 31 March 2023 (c) Credit risk
Maximum exposure to credit risk and credit quality of financial assets
The amounts shown represent the maximum exposure of the Group to credit risk at the end of the
reporting period. This is equal to the carrying amount of each class of financial assets in the table below.
The Group uses internal credit ratings to manage the credit quality of its financial assets. The Group
holds financial assets with financial institutions of $482.35m (2022: $335.15m) rated investment grade
(between Aaa-Baa3) and $8.25m (2022: $2.25m ) unrated. There are no balances that are past due or
impaired as at 31 March 2023 (2022: nil).
Rating
Cash and cash equivalents
Investment grade
Cash and cash equivalents
Unrated1
Deposits due from financial institutions
Investment grade
Derivative assets – with financial institutions
Investment grade
Derivative assets – with clients
Other receivables
Unrated
Unrated
2023
$’000
428,690
8,171
25,613
27,956
24,719
7,365
2022
$’000
299,700
2,170
25,144
10,215
24,170
5,473
Total gross credit risk
522,514
366,872
1. Unrated balances relate to amounts due from clients that are not graded by the Company or by a public ratings agency.
2023 Credit Risk Exposure ($’000)
2022 Credit Risk Exposure ($’000)
$7,365
$24,719
$5,473
$24,170
$490,430
$337,229
Financial Institutions
Clients
Other receivables
Financial Institutions
Clients
Other receivables
2023 Credit Risk Exposure by Geography ($’000)
2022 Credit Risk Exposure by Geography ($’000)
$83
$257,161
$57
$90,226
$182,756
$177,338
$87,733
$93,098
APAC
EMEA
North America
Other
APAC
EMEA
North America
Other
92 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 For trading credit risk, the Group assesses the credit quality of the client, taking into account its
financial position, past experience, external credit agency reports and credit references. Individual
client risk limits are set based on internal approvals in accordance with delegated authority limits set
by the Board. The compliance with credit limits by credit approved client is regularly monitored by line
credit management. Client receivables aged more than 90 days past due are fully provided for unless
deemed otherwise appropriate based on expectation of recoverability.
The Group applies historical lifetime past due information to provide for expected credit losses
prescribed by AASB 9, which permits the use of past due information to determine the lifetime
expected loss provision for all client receivables arising from a financial instrument. The loss allowance
provision as at 31 March 2023 and 2022 was determined as set out below, which incorporates past
experience and forward-looking information about the client, including the likelihood of recovery.
Gross carrying amount ($’000)
Year
2023
Gross carrying amount ($’000)
2022
Provision ($’000)
Provision ($’000)
2023
2022
Current
2,063
2,944
61
62
More than
30 days
past due
More than
60 days
past due
More than
90 days
past due
222
5
125
13
170
49
201
31
4,553
846
3,877
349
Total
$’000
7,008
3,844
4,264
455
The loss allowances for client receivables as at 31 March reconciles to the opening loss allowances as
follows.
Opening loss allowance as at 1 April
Loss allowance from acquisition
Write off during the year
Increase in loss allowance recognised in profit or loss during the year
Closing loss allowance at 31 March
2023
$’000
455
3,875
(2,085)
2,019
4,264
2022
$’000
1,685
–
(1,358)
128
455
Impairment losses on client receivables are presented as bad and doubtful debts within the
Consolidated Statement of Comprehensive Income.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 93
Notes to the financial statementsfor the year ended 31 March 2023 (d) Liquidity risk
Maturity profile of obligations
The table below summarises the maturity profile of the Group’s financial liabilities as at 31 March 2023
based on contractual undiscounted repayment cash flows. Derivatives are included in the less than
3 months column at their fair value, as they are frequently settled in the short term. Liquidity risk on
these items is not managed on the basis of contractual maturity, since they are not held for settlement
according to such maturity and will frequently be settled in the short term at fair value. Derivatives
designated in a hedging relationship are included according to their contractual maturity.
On demand
$’000
3 months
or less
$’000
3 to
12 months
$’000
1 to 5 years
$’000
Over
5 years
$’000
Total
$’000
2023
Loans and borrowings
(148)
–
(4,228)
(386,814)
–
–
(65,035)
(4,180)
–
–
(65,183)
(395,222)
(149)
(299)
(1,344)
(10,112)
(2,053)
(13,957)
–
–
1,835,128
1,613,861
43,654
(1,828,842)
(1,601,729)
(43,531)
–
–
3,492,643
(3,474,102)
(4,525)
(380,827)
10,788
(79,204)
(2,053)
(455,821)
(1,894)
(253,478)
–
(285)
(569)
(2,563)
(3,316)
(4,931)
–
–
1,455,658
1,014,086
45,942
(1,450,560)
(1,012,174)
(45,682)
–
–
–
–
–
(258,688)
(8,348)
2,515,686
(2,508,416)
(259,766)
Other liabilities1
Lease liabilities
Derivative financial
instruments
Inflows
(Outflows)
Total
2022
Other liabilities1
Lease liabilities
Derivative financial
instruments
Inflows
(Outflows)
Total
(2,179)
(248,949)
(651)
(7,987)
1. Excludes items that are not financial instruments and non-contractual accruals and provisions.
94 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Financial instruments, derivatives and hedging activity
The Group classifies its financial assets in the following categories: financial assets at amortised cost
and financial assets at fair value through profit or loss. The classification depends on the purpose for
which the financial assets were acquired, which is determined at initial recognition based upon the
business model of the Group.
(i) Financial assets and liabilities at amortised cost
The Group classifies its financial assets and liabilities at amortised cost if the asset or liability is held
with the objective of settling contractual cash flows and the contractual terms give rise on specified
dates to cash flows that are solely payments of principal and interest. These financial assets include
client receivables and bank term deposits. Bank term deposits are non-derivative financial assets with
fixed or determinable payments that are not quoted in an active market. They are financial assets at
amortised cost. Refer to Note 9 for details relating to client receivables. These financial liabilities
include loans and borrowings. Secured loans are non-derivate financial liabilities with fixed or
determinable payments that are not quoted in an active market. They are financial liabilities measured
at amortised cost using the effective interest rate method. Interest expense and foreign exchange gains
or losses are recognised in profit or loss. Refer to Note 18 for details relating to loans and borrowings.
(ii) Financial assets and liabilities through profit or loss
The Group holds forward foreign exchange contracts within a business model where collecting
contractual cash flows while holding the asset is incidental to achieving the business model’s objective
of managing performance on a fair value basis as determined by prevailing and expected foreign
currency exchange rates. The Group is primarily focused on fair value information to assess the assets’
performance and make decisions, resulting in derivative financial instruments being measured at fair
value through profit or loss unless designated in hedging relationships.
(iii) Hedging activity
Financial instruments designated by the Group for the purpose of hedging the variability in cash flows
associated with highly probable forecast transactions arising from changes in exchange rates, and for
the management of foreign currency risk associated with its net investment in foreign operations
qualify for hedge accounting. Instruments are initially recognised at fair value on the date a derivative
contract is entered into and are subsequently remeasured to their fair value at the end of each
reporting period. The full fair value of hedging derivatives is classified as an asset or liability.
At inception of the hedge relationship, the Group documents the economic relationship between
hedging instruments and hedged items including whether changes in the cash flows of the hedging
instruments are expected to offset changes in the cash flows of hedged items. The Group documents
its risk management objective and strategy for undertaking its hedge transactions.
Hedges of net investments in foreign operations and cash flow hedges are accounted for by
recognising any gain or loss on the hedging instrument relating to the effective portion of the hedge
in other comprehensive income and accumulated in reserves in equity. The gain or loss relating to the
ineffective portion is recognised immediately in profit or loss within unrealised gains/(losses).
The Group designates only the change in fair value of the spot element of forward exchange contracts
as the hedging instrument in cash-flow hedging relationships. The change in fair value of the forward
element of forward exchange contracts (forward points) is separately accounted for as a cost of
hedging and recognised in a costs of hedging reserve within equity.
When the hedged forecast transaction subsequently results in the recognition of a non-financial item,
the amount accumulated in the hedging reserve and the cost of hedging reserve is included directly in
the initial cost of the non-financial item when it is recognised.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 95
Notes to the financial statementsfor the year ended 31 March 2023 Gains and losses accumulated in equity are reclassified to profit or loss when the foreign operation is
partially disposed of or sold.
The effects of applying hedge accounting on the Group’s financial position and performance are
as follows:
Hedging instrument – forward foreign exchange contracts
Carrying amount – Assets
Carrying amount – Liabilities
Notional amount British Pounds
Notional amount US Dollars
Notional amount Canadian Dollars
Notional amount New Zealand Dollars
Notional amount Euros
Maturity date
Hedge ratio
Change in value of outstanding hedge instruments since 1 April
Change in value of hedged item used to determine hedge effectiveness
2023
$’000
152
(850)
4,928
12,123
3,717
2,149
1,186
2022
$’000
755
(165)
4,555
10,395
3,127
2,986
880
Apr 2022
– Mar 2023
Apr 2021
– Mar 2022
1:1
(2,282)
2,282
1:1
540
(540)
Weighted average hedge rate
– British Pounds
A$1 : GBP0.5638
A$1 : GBP0.5522
– US Dollars
A$1 : US$0.6679
A$1 : US$0.7423
– Canadian Dollars
A$1 : CA$0.9025
A$1 : CA$0.9359
– New Zealand Dollars
A$1 : NZ$1.0770
A$1 : NZ$1.0488
– Euros
A$1 : EUZ$.6494
A$1 : EUR0.6404
Cash flow Hedge
Carrying amount – Assets
Carrying amount – Liabilities
Notional amount Canadian Dollars
Maturity date
Hedge ratio
Change in value of outstanding hedge instruments since beginning of
the period
Change in value of hedged item used to determine hedge effectiveness
2023
$’000
934
–
90,000
2022
$’000
308
(2,288)
90,000
May 2022
May 2022
1:1
2,914
(2,914)
1:1
(1,980)
1,980
96 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Other Assets and Liabilities
Note 13. Property, Plant and Equipment
Property, plant and equipment is measured at cost less accumulated depreciation and impairment losses.
Assets are depreciated on a straight-line basis over their estimated useful lives, as follows:
Asset class
Furniture and fittings
Leasehold improvements
Computer equipment
Year ended 31 March 2022
Cost
Less accumulated depreciation
Net carrying amount
Movement
Balance at 31 March 2021
Additions
Disposals
Depreciation
Balance at 31 March 2022
Year ended 31 March 2023
Cost
Less accumulated depreciation
Net carrying amount
Movement
Balance at 31 March 2022
Additions
Disposals
Depreciation
Balance at 31 March 2023
Useful life
5 to 10 years
Up to 5 years
3 years
Total
$’000
14,300
(13,064)
Furniture, fittings and
leasehold improvements
$’000
Computer
equipment
$’000
8,934
(8,393)
5,366
(4,671)
541
695
1,236
537
380
–
(376)
541
517
580
–
(402)
695
1,054
960
–
(778)
1,236
9,779
(8,972)
6,790
(5,454)
16,569
(14,426)
807
1,336
2,143
541
845
–
(579)
807
695
1,423
–
(782)
1,336
1,236
2,269
–
(1,362)
2,143
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 97
Notes to the financial statementsfor the year ended 31 March 2023 Note 14. Intangible Assets
Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration
over the Group’s interest in the net fair value of the identifiable net assets, liabilities and contingent
liabilities of the acquiree. Subsequent to initial measurement, goodwill is measured at cost less
accumulated impairment losses.
Client Relationships
Client relationships acquired in business combinations are recognised initially at fair value and are
subsequently amortised on a straight-line basis according to the expected useful life of these
relationships which is estimated to be 10 years.
Software and Website
Software and website intangibles are carried at cost at the date of acquisition less accumulated
amortisation and impairment losses. Costs directly incurred in acquiring and developing certain
software are capitalised where they meet the criteria for capitalisation and amortised on a straight-
line basis over the estimated useful life of three to five years. Costs incurred on research related costs
or software maintenance are expensed as incurred.
Goodwill
$’000
Client
relationships
$’000
Software &
Website
$’000
Total
$’000
48,376
(27,830)
(673)
48,376
(27,830)
(673)
19,873
19,873
16,327
10,512
(6,965)
16,327
10,512
(6,965)
19,873
19,873
Year ended 31 March 2022
Cost
Less accumulated amortisation
Less accumulated impairment
Net carrying amount
Movement
Balance at 31 March 2021
Additions
Amortisation
Balance at 31 March 2022
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
98 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Goodwill
$’000
Client
relationships
$’000
Software &
Website
$’000
Total
$’000
Year ended 31 March 2023
Cost
Less accumulated amortisation
Less accumulated impairment
65,377
–
–
6,670
(592)
–
68,546
140,593
(36,209)
(36,801)
(673)
(673)
Net carrying amount
65,377
6,078
31,664
103,119
Movement
Balance at 31 March 2022
Acquisitions through business combinations
Additions
Amortisation
Effects of movements in exchange rates
–
64,844
–
–
533
–
6,637
–
(594)
35
19,873
1,567
18,603
(8,379)
–
19,873
73,048
18,603
(8,973)
568
Balance at 31 March 2023
65,377
6,078
31,664
103,119
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 99
Notes to the financial statementsfor the year ended 31 March 2023 Impairment assessment of intangible assets
The Group assesses whether goodwill is impaired at least annually. For the purposes of impairment
testing, goodwill is allocated to the Group’s cash-generating units (CGUs). The CGUs align with the
Group’s operating segments as disclosed in Note 2. The goodwill and any other intangible assets with
indefinite lives acquired in business combinations, for the purpose of impairment testing is allocated
to CGUs that are expected to benefit from the synergies of the combination.
An impairment loss is recognised in profit and loss if the carrying amount of an asset or its CGU
exceeds its recoverable amount. Impairment losses recognised in respect of CGUs are allocated first
to reduce the carrying value of any goodwill allocated to the units and then to reduce the carrying
amount of the other assets in the unit on a pro-rate basis.
The recoverable amounts of CGUs were determined through value in use calculations. The value in use
calculations applied a post-tax discounted cash flow model, based on five-year cash flow forecasts and
an appropriate terminal value. The forecast information is based on information available at 31 March
2023. A terminal growth rate of 3% (2022: nil) and post-tax discount rate of 8.3% (2022: nil) was used in
the value in use calculations. No impairment charge was recognised during the year as the recoverable
amount of each CGU was determined to be in excess of the carrying amount.
The following CGUs represent the carrying amounts of goodwill.
North America
EMEA
Total Goodwill
Note 15. Other Creditors and Accruals (Current Liabilities)
Accrued charges and sundry liabilities
Other liabilities
Total other liabilities
2023
$’000
61,957
3,420
65,377
2023
$’000
10,936
44
2022
$’000
–
–
–
2022
$’000
7,687
10
10,980
7,697
100 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 16. Provisions
Employee provisions
The Group has a Short-Term Incentive Plan available to all employees including Executive Key
Management Personnel (KMP). The Short-Term Incentive Plan is accrued as a liability and expensed
over the annual service period until it is paid.
When the long service leave is not expected to be settled within 12 months of year end, the liabilities
are measured as the present value of expected future payments using the projected unit credit
method.
Leasehold makegood provision
The Group holds a provision for makegood costs anticipated to be incurred in respect of office leases
in Australia, London, Canada and Hong Kong. The provision is being accrued on a straight-line basis
over the lease terms.
Employee provisions
Annual leave
$’000s
Short-term
incentives
$’000s
Long service
leave
$’000s
Leasehold
makegood
$’000s
Total
$’000s
Carrying amount at beginning
of the period
Provisions from acquisition
Additional provisions made
1,518
2,585
3,935
6,082
2,235
9,480
Provision utilised during the period
(4,242)
(8,810)
809
–
236
(19)
509
8,918
–
–
14
4,820
13,651
(13,057)
Carrying amount at the end
of the period
3,796
8,987
1,026
523
14,332
All employee provisions are current liabilities apart from $594,431 (2022: $431,525) of long service
leave which is non-current.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 101
Notes to the financial statementsfor the year ended 31 March 2023 Note 17. Leases
Under AASB 16 Leases, leases are recognised as a right-of-use asset and a corresponding liability at
the date at which the leased asset is available for use by the Group. Each lease payment is allocated
between the liability and finance cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability
for each period. The right-of-use asset is depreciated over the shorter of the asset’s useful life and the
lease term on a straight-line basis.
The Group leases various offices. Rental contracts are typically made for fixed periods of three to ten
years but may have extension options. Lease terms are negotiated on an individual basis and contain
a wide range of different terms and conditions. The lease agreements do not impose any covenants,
but leased assets may not be used as security for borrowing purposes.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of the following lease payments:
• Fixed payments (including in-substance fixed payments), less any lease incentives receivable; and
• Variable lease payments that are based on an index or a rate.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be
determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would
have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions. To determine the incremental borrowing rate and in
the absence of third party borrowings, the Group uses a build-up approach that starts with a risk-free
interest rate adjusted for credit risk for leases held by the Group, and makes adjustments specific to
the lease, e.g. term, country, currency and security.
Extension options are included in a number of the Group’s property leases. The extensions are
exercisable only by the Group and not by the respective lessor. In determining the lease term,
which forms part of the initial measurement of the right-of-use asset and lease liability, management
considers all facts and circumstances that create an economic incentive to exercise an extension option.
Extension options are only included in the lease term if the lease is reasonably certain to be extended.
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.
Subsequent to initial measurement, the lease liability is reduced for payments made and increased for
interest incurred. The liability is remeasured to reflect any reassessment or modification, or if there
are changes to in-substance fixed payments. When the lease liability is remeasured, a corresponding
adjustment is made to the value of the right-of-use asset. Right-of-use assets are generally depreciated
over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Payments associated with short-term leases and leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of
12 months or less. Low-value assets comprise IT equipment and small items of office furniture.
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
102 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Right of use assets
Opening balance at the beginning of the period
Depreciation charge for the year
Modification of right of use assets
Addition of right of use assets from acquisition
FX revaluation
Total lease assets
Lease liabilities
Current
Non-current
Total lease liabilities
2023
$’000
6,402
(2,880)
7,436
1,313
454
2022
$’000
13,899
(2,205)
(5,535)
–
243
12,725
6,402
1,793
12,166
13,959
3,417
4,931
8,348
The Consolidated Statement of Financial Performance shows the following amounts relating to leases:
Depreciation charge of right of use assets
Buildings
Total depreciation charge
Interest expense
2023
$’000
2,880
2022
$’000
2,205
2,880
2,205
501
717
The Consolidated Statement of Cash Flows shows the following amount relating to leases:
Total cash outflow for leases
(3,862)
(4,136)
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 103
Notes to the financial statementsfor the year ended 31 March 2023 Note 18. Loans and Borrowings
Loans and borrowings (current)
Loans and borrowings (non-current)
Closing balance
As at
31 March
2023
$’000
As at
31 March
2022
$’000
148
65,035
65,183
–
–
–
On 2 May 2022 (1 May 2022 Edmonton time), the Group obtained a syndicated bank loan to the amount
of $100 million (2021: nil), used to fund the acquisition of Firma Foreign Exchange Corporation Limited.
The interest period has been elected at 3 months. The loan bears interest at 3.5% above the 3-month
BBSY and is repayable in five years by May 2027. There are no penalties for early repayment, and the
Group commenced principal repayment from 9 May 2022.
During the period ended 31 March 2023, $36.2 million has been paid of which $32.0 million is for early
repayments of principal.
Interest expense of $4.2 million for the period ended 31 March 2023 has been recognised in the
Consolidated Statement of Comprehensive Income. These balances are also reflected in the investing
activities in the Consolidated Statement of Cash Flows.
The loan is secured by a combination of floating and fixed charges over property of the Group.
The Group is required to adhere to financial covenants as of compliance dates: 30 September and
31 March each year. These are as follows:
1. The Net Leverage Ratio is not greater than 3.00x
2. The Interest Cover Ratio is not less than 3.00x
3. The gearing ratio is not greater than
(i) 60% at each compliance date up to 31 March 2023;
(ii) 55% at each compliance date during the 24-month period up to 31 March 2025; and
(iii) 50% at each compliance date thereafter.
The Group has complied with these financial covenants as of compliance dates in the period.
104 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 19. Acquisition of Subsidiary
On 1 May 2022, the Group largely completed its acquisition of 100% of the issued capital of the
Canadian corporate foreign exchange business, Firma Foreign Exchange Corporation (‘Firma’).
On 2 September 2022, the acquisition was completed, with the United Kingdom based arm of the Firma
business being acquired post approval from the Financial Conduct Authority.
Firma is a global payments and foreign exchange service provider based in Edmonton, Canada, with
specialised FX products and services for Corporate clients.
The transaction expands OFX’s capability and presence as a global foreign exchange and payments provider.
Fair value of consideration transferred
Amount settled in cash
Total consideration transferred
Recognised amounts of identifiable net assets
Cash and cash equivalents
Derivative financial assets
Investments in controlled entities
Other receivables
Right of use assets
Property, plant and equipment
Intangible assets
Deferred income tax assets
Total assets
Current tax liabilities
Client liabilities
Other liabilities
Lease liabilities
Provisions
Deferred income tax liabilities
Total liabilities
Identifiable net assets
Goodwill on acquisition
Consideration transferred
Acquisition costs charged to expenses
Net cash paid relating to the acquisition
$’000
95,320
95,320
97,363
5,596
2,861
9,443
1,005
1,212
8,333
6,392
132,205
(9,145)
(77,422)
(7,787)
(1,315)
(4,849)
(1,744)
(102,262)
29,943
65,377
95,320
4,479
99,799
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 105
Notes to the financial statementsfor the year ended 31 March 2023 Acquisition-related costs amounting to $4.5m have been excluded from the consideration transferred
and have been recognised as an expense in profit or loss in the half-year, within the Consolidated
Statement of Comprehensive Income.
The goodwill that arose on the combination can be attributed to the synergies expected to be derived
from the combination and the value of expansion in North America.
Goodwill has been allocated to cash-generating units at 31 March and is attributable to the North
America and EMEA segments; $62m and $3.4m respectively.
As of the date of signing these financial statements a total of $13.7m was held in escrow for the
satisfaction of indemnities, representations and warranties and there is a current claim against an
element of this balance.
These balances have been included within the consideration transferred. Any adjustments relating to
cash held in escrow will be adjusted through fair value through profit and loss.
106 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Capital Structure
Note 20. Capital Management
The Group’s capital management strategy is to maximise shareholder value by optimising the level and
use of capital, defined as share capital plus reserves. The Group’s capital management objectives are to:
• Support the Group’s business and operational requirements;
• Meet externally imposed capital requirements; and
• Safeguard the Group’s ability to continue as a going concern.
The Group has continued to meet its internal and externally imposed capital requirements this year
and no breaches have occurred.
Note 21. Ordinary Share Capital
Ordinary shares are classified as equity and measured based on the proceeds from issuing the shares
less the directly attributable incremental costs, net of tax.
There are 243,599,470 fully paid ordinary shares (2022: 242,625,332). Ordinary shares entitle the
holder to vote and to receive dividends and the proceeds of the Company if it is liquidated in
proportion to the number of shares held.
There are 4,135,718 (2022: 5,109,856) restricted ordinary shares of which 199,674 are unallocated and
3,936,044 are issued to KMP and executives in connection with the Executive Share Plan. Refer to
Note 25 for further information.
Share buyback
On 23 May 2023, the Company announced an on-market share buyback program to return funds to
shareholders as part of the Company’s capital management program while also allowing for growth.
The on-market share buyback program will be up to 10% of the Company’s fully paid ordinary shares
and will commence in June 2023.
On 18 May 2021, the Company announced an on-market share buyback program instead of a dividend
in the near term. The on-market share buyback program was to be up to 10% of the Company’s fully
paid ordinary shares and commenced on 7 June 2021. A total of 1,912,000 ordinary shares were bought
back and subsequently cancelled in the prior period. The total amount paid for the buyback was
$2.65 million. On the announcement of the Firma acquisition on the 20th December 2021, the share
buyback was suspended with excess cash focused on debt repayment.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 107
Notes to the financial statementsfor the year ended 31 March 2023 Note 22. Dividends
Dividends are recognised as a liability and a reduction to retained earnings when declared. There were
no dividends paid in the period (2022: nil).
Franking credits available for subsequent financial years
based on a tax rate of 30% (2022: 30%)
2023
$’000
1,299
2022
$’000
1,261
The above amounts represent the balance of the franking account as at the end of the financial period,
adjusted for the franking credit impact that will arise from receipt of the current tax asset.
Note 23. Equity-accounted investees
Investment in joint venture1
Closing balance
2023
$’000
5,173
2022
$’000
5,028
5,173
5,028
1. The comparative information has been restated to reflect alignment of the recognition of the investment to the Group’s accounting policies.
Investment in joint venture
Acquired on 11 June 2021, TreasurUp B.V. (TreasurUp) is a joint venture in which the Group has joint
control and a 44.98% ownership interest. TreasurUp is a treasury management software company,
whose principle place of business is the Netherlands, which will allow the Group to provide automated
hedging and risk management solutions for small and medium size corporates to manage their foreign
exchange risk. TreasurUp is not publicly listed. TreasurUp is structured as a separate vehicle and the
Group has a residual interest in the net assets of TreasurUp. Accordingly, the Group has classified its
interest in TreasurUp as a joint venture.
In accordance with the agreement under which the Group’s investment in TreasurUp was established,
the Group provided a loan to the company in an amount of €750,000, with an annual interest rate
of 8%. The closing balance at 31 March 2023 of A$1.405 million (2022: A$1.183 million) is included in
‘Other receivables’ on the Consolidated Statement of Financial Position and at Note 9. No expense has
been recognised in the current year for bad or doubtful debts in respect of this balance owed.
Accounting policy
The Group’s interest in equity accounted investees includes a joint venture. A joint venture is an
arrangement in which the Group has joint control over the key financial and operating policies and
has rights to the net assets of the arrangement, rather than rights to its assets and obligations for
its liabilities. Interests in the joint venture are accounted for using the equity method.
108 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Under the equity method, the investment is initially recognised at cost, which includes transactions
costs. The investment is subsequently adjusted to recognise the Group’s share of the joint venture’s
profit or loss and other comprehensive income until the date on which joint control ceases.
The Group’s share of the joint venture’s profit or loss and other comprehensive income is included
in the Group’s profit and loss.
Unrealised gains arising from transactions with equity accounted investments are eliminated
against the investment to the extent of the Group’s interest in the investment. Unrealised losses
are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence
of impairment.
At each reporting date, the Group determines whether there is objective evidence that an investment
in joint venture is impaired. If there is such evidence, an impairment loss, measured by comparing
the recoverable amount of the investment with its carrying value, is recognised in the profit or loss.
No impairment expense has been recognised in this regard in the current period.
The following table summarises the financial information of TreasurUp as included in its own financial
statements, adjusted for fair value adjustments at acquisition and differences in accounting policies.
The table also reconciles the summarised financial information to the carrying amount of the Group’s
interest in TreasurUp.
Non-current assets
Current assets (including cash and cash equivalents)
Non-current liabilities
Current liabilities
Net assets
Group’s share of net assets (44.98%)
Equity-accounted acquisition costs
Foreign exchange revaluation
Carrying amount of interest in joint venture1
Revenue
Interest expense
Income tax expense
Profit and total comprehensive income at 100%
Profit and total comprehensive income at 44.98%
Elimination of interest on related party loan
Group’s share of total comprehensive profit1
2023
$’000
8,005
11,020
(2,626)
(4,937)
11,462
5,156
66
(49)
5,173
6,153
(244)
(299)
298
134
110
244
2022
$’000
7,401
8,636
(2,365)
(3,145)
10,527
4,735
66
227
5,028
2,425
(163)
–
440
198
77
121
1. The comparative information has been restated to reflect alignment of the recognition of the investment to the Group’s accounting policies.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 109
Notes to the financial statementsfor the year ended 31 March 2023 Other Items
Note 24. Related Party Information
Subsidiaries
The following entities are wholly owned subsidiaries of the Group and all have a 31 March year end,
except for Firma Foreign Exchange (UK) and (NZ) Limited which have a 30 September year end:
Country of incorporation
Functional currency
CAD
HKD
CNY
AUD
AUD
SGD
NZD
GBP
EUR
USD
JPY
CAD
GBP
NZD
Entity
CanadianForex Limited
OzForex (HK) Limited
OFX (Shanghai) Co. Ltd
OzForex Limited
OFX Financing Pty Limited
OFX Singapore Pte. Limited
NZForex Limited
UKForex Limited
OFX Payments Ireland Limited
USForex Incorporated
OFX Japan G.K.
Firma Foreign Exchange Corporation
Canada
Hong Kong
China
Australia
Australia
Singapore
New Zealand
United Kingdom
Ireland
United States
Japan
Canada
Firma Foreign Exchange Corporation (UK) Limited
United Kingdom
Firma Foreign Exchange Corporation (NZ) Limited
New Zealand
110 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 25. Share-Based Payments
The Group has a number of employee share based payments issued under the Executive Share Plan
(ESP) and the Global Equity Plan (GEP). The nature of the issuances under the Plans are listed below:
Issuance
Description
Long Term Incentives
(LTI) – Executive Share
Plan Options
Long Term Incentives (LTI) are issued under the Group’s Executive Share Plan
(ESP). Executives are provided with an interest free, non-recourse loan from
the Group for the sole purpose of acquiring shares in the Company.
Executives may not deal with the shares while the loan remains outstanding
and any dividends paid on the shares are applied (on an after-tax basis)
towards repaying the loan. Executives are entitled to exercise the voting
rights attached to the shares from the date of allocation. If the Executive
leaves the Group within the vesting period the shares allocated are returned
to the Group, subject to discretion retained by the Directors.
Long Term Incentives
(LTI) – Global Equity
Plan (GEP) Options
Long Term Incentives (LTI) are issued under the Global Equity Plan and
comprise options to acquire ordinary shares. Following vesting of the options
upon satisfaction of performance conditions, and before their expiry date,
some or all the Options may be exercised at the agreed exercise price to
acquire fully paid ordinary shares on a one-for-one basis.
Long Term Incentives
(LTI) – Global Equity
Plan Performance
Rights
Long Term Incentive (LTI) – Performance rights are issued under the Group’s
Global Equity Plan (GEP). Performance rights are issued to Executives eligible
to receive deferred LTI awards as reward for performance. Performance
rights are granted at no cost and are settled in shares on a one-for-one basis.
Short Term Incentives
(STI) – Performance
rights
Short Term Incentive (STI) – Performance rights are issued under the Group’s
Global Equity Plan (GEP). Performance rights are issued to employees eligible
to receive deferred STI awards and also to eligible employees as reward for
performance. Performance rights are granted at no cost and are settled in
shares on a one-for-one basis.
Short Term Incentives
(STI) – Retention
Retention payments in the form of an equity grant were issued to Executives
as a one-off incentive. This issuance represented a commitment made by
the Board as a part of the unsolicited M&A proposal during FY20. This award
vested 12 months from the date of the award, on 9 June 2021. There were
no issuances under this award in FY23.
One-off Performance
Rights
One-off Performance rights are issued under the Group’s Global Equity Plan
(GEP) on a one-off, discretionary basis to employees and executives as a
reward for performance. One-off performance rights are granted at no cost
and are settled in shares on a one-for-one basis.
Employee Shares
Employee shares are issued under the Group’s Global Equity Plan. The Board
has discretion to gift shares to Employees and/or to offer a matching plan.
Shares, where issued, are held in a holding lock for the earlier of, three years
or when the employee ceases employment.
For details on the vesting conditions of share issuances, refer to the Remuneration Report.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 111
Notes to the financial statementsfor the year ended 31 March 2023 The share-based payment expense within Employee Expenses in the Consolidated Statement of
Comprehensive Income is as follows:
Long Term Incentives (LTI) – Executive Share Plan
Short Term Incentives (STI) – Performance Rights
Short Term Incentives (STI) – Retention
One-off Performance Rights
Employee Shares
2023
$
2022
$
1,431,675
1,457,430
1,390,560
–
649,048
–
597,578
146,252
275,906
366,110
Total share-based payment expense
3,471,283
2,843,276
Accounting for share-based payments
The fair value determined at the grant date of the award is recognised as a share-based payment
expense in the Consolidated Statement of Comprehensive Income with an offsetting increase in share
based payments reserve within Equity over the relevant performance period. The expense recognised
is reduced to take account of the expense attributable to participating employees who do not remain
in the employment of the Group throughout the vesting period.
Shares issued under the LTI – ESP are accounted for as options and as such the amounts receivable
from employees in relation to these loans are not recognised in the financial statements. Settlement
of share loans upon vesting is recognised as contributed equity.
The LTI – Performance Rights, the LTI – ESP options and LTI GEP Options are measured at fair value at
the date of grant using the Monte Carlo simulation model. The fair values include assumptions in
the following areas: risk free rate, volatility, estimated service periods and expected achievement of
hurdles. The expected life of the options is based on historical data and is not necessarily indicative
of exercise patterns that may occur. The expected volatility reflects the assumption that the historical
volatility is indicative of future trends, which may also not necessarily reflect the actual outcome.
Long Term Incentives (LTI)
Executive Share Plan (ESP) and Options
The ESP was established to incentivise Executives to deliver on the business strategy and contribute to
sustainable long-term returns. Detailed remuneration disclosures are provided in the Remuneration
Report section of the Directors’ Report.
Under the ESP, eligible Executives are provided with an interest free, non-recourse loan from the
Group for the sole purpose of acquiring shares in the company. Executives may not deal with the
shares while the loan remains outstanding and any dividends paid on the shares are applied (on an
after-tax basis) towards repaying the loan. Executives are entitled to exercise the voting rights attached
to the shares from the date of allocation. If the Executive leaves the Group within the vesting period
the shares allocated are returned to the Group, subject to discretion retained by the Directors.
There were no issuances under the LTI – ESP or LTI – GEP Options in the current period.
112 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 LTI Performance Rights
During the current period, Executives were offered a single grant of performance rights. Detailed
remuneration disclosures are provided in the Remuneration Report section of the Directors’ Report.
The fair value of the LTI – Performance Rights that were issued during the period is determined using
the Monte Carlo simulation with the following assumptions. The exercise price was $0 for each of
the awards.
Performance
period (years) Grant date
Vesting date
3
3
15 June 2022
15 June 2025
12 August 2022
15 June 2025
Weighted average
fair value at
grant date
Dividend
yield
Risk free
interest
rate
Share
price
volatility
$1.47
$2.04
0%
0%
3.67%
3.07%
33%
33%
Short Term Incentives (STI) performance rights
The fair value of the STI Performance Rights that were issued during the period is determined using
the Black-Scholes option pricing model with the following assumptions. The exercise price was $0 for
each of the awards.
Deferral period
(years)
1
2
1
Grant date
Vesting date
10 June 2022
10 June 2023
10 June 2022
10 June 2024
12 August 2022
10 June 2023
Fair value
at grant date
Dividend
yield
Risk free
interest
rate
Share
price
volatility
$2.41
$2.41
$2.68
0%
0%
0%
2.67%
2.67%
2.95%
43.07%
38.17%
44.20%
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 113
Notes to the financial statementsfor the year ended 31 March 2023 One-off Performance Rights
The fair value of the one-off performance rights is determined using the Black-Scholes option pricing
model with the following assumptions. The exercise price was $0 for each of the awards.
Deferral
period
(years)
0.6
1.0
2.0
1.9
0.5
1.5
0.4
Grant date
Vesting date
15 June 2022
31 January 2023
15 June 2022
15 June 2023
15 June 2022
15 June 2024
5 August 2022
15 June 2024
15 December 2022
15 June 2023
15 December 2022
15 June 2024
31 January 2023
30 June 2023
Fair value
at grant date
Dividend
yield
Risk free
interest
rate
Share
price
volatility
$2.13
$2.13
$2.13
$2.77
$2.49
$2.49
$2.39
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
3.37%
3.37%
3.37%
2.67%
3.11%
3.11%
2.99%
47.59%
38.33%
40.23%
38.95%
39.93%
39.79%
32.85%
Share based-payment awards
Balance at
start of
the year
Granted
during
the year
Vested
during
the year
Forfeited
during
the year
Balance at
end of
the year
LTI – Executive Share Plan Options
4,457,862
LTI – Global Equity Plan Options
722,612
–
–
(1,907,677)
(36,642)
2,513,543
(722,612)
–
–
LTI – Global Equity Plan Performance
rights
1,632,279
1,839,804
–
(258,143)
3,213,940
STI – Performance rights
546,335
688,321
(502,369)
(58,605)
673,682
One-off – Performance rights
401,851
730,199
(155,799)
(129,648)
846,603
114 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 26. Key Management Personnel (KMP)
In accordance with the requirements of AASB 124 Related Party Disclosures, the KMP include Non-
Executive Directors and members of the Group Executive Team who have authority and responsibility
for planning, directing and controlling the activities of the Group. A summary of KMP compensation is
set out in the table below.
Key management personnel remuneration
Remuneration
Short-term employee benefits
Post-employment benefits
Long-term employee benefits
Share-based payments
2023
$
2022
$
3,010,778
2,859,764
144,257
58,713
131,998
22,395
1,432,905
1,025,978
Total remuneration paid to key management personnel
4,646,653
4,040,135
Detailed remuneration disclosures of individual KMP are provided in the Remuneration Report.
Shareholdings
The total number of shares in the Company held during the year by the Directors and other KMP,
including their personal related parties, are set out below.
Number of options and rights for fully paid ordinary shares
Number of fully paid ordinary shares
Number of restricted ordinary shares
Outstanding loans
2023
Number
1,859,666
2022
Number
236,271
1,803,380
1,268,933
2,777,998
2,801,709
The total loan amount outstanding from KMP in relation to the LTI – ESP is $3,206,259
(2022: $3,715,313). Refer to Note 25 for details of the plan.
Other transactions with KMP
All transactions with KMP are made on normal commercial terms and conditions and in the ordinary
course of business. There were no transactions during the financial year nor balances owing to or
from KMP as at 31 March 2023.
In the normal course of business, the Group occasionally enters into transactions with various
entities that have Directors in common with the Group. Transactions with these entities are made
on commercial arm’s length terms and conditions. The relevant Directors do not participate in any
decisions regarding these transactions.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 115
Notes to the financial statementsfor the year ended 31 March 2023 Note 27. Auditor Remuneration
Company’s auditor remuneration
KPMG
Audit and review of financial statements
Regulatory assurance services
Other advisory services
2023
$
2022
$
1,019,976
102,861
35,404
493,393
41,147
247,994
Total Company’s auditor remuneration
1,158,241
782,534
Auditor remuneration to other accounting firms
Audit and review of financial statements
Taxation services
132,702
135,967
77,909
106,770
Total auditor remuneration to other accounting firms
268,669
184,679
116 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Notes to the financial statementsfor the year ended 31 March 2023 Note 28. Parent Entity Financial Information
Dividends are recognised as income when the Company becomes entitled to the dividend.
The ultimate parent entity is OFX Group Limited.
Summary financial information
Statement of Financial Position
Investment in subsidiaries
Total assets
Share-based payments reserve
Ordinary share capital
Total equity
Profit or loss for the year (intercompany dividends received)
Total comprehensive income
2023
$’000
2022
$’000
36,750
31,411
36,750
31,411
5,150
31,600
2,835
28,576
36,750
31,411
–
–
–
–
Earnings per share attributable to ordinary shareholders:
Cents
Cents
Basic earnings per share
Diluted earnings per share
–
–
–
–
Note 29. Events Occurring After Balance Sheet Date
OFX announced an investment to acquire Paytron Holdings Pty Ltd, a Sydney-based B2B payments
company that has developed a platform that supports modern accounts receivable workflow, multi-
currency account and card capabilities. This is in line with OFX’s focus on expanding its services for
B2B clients and accelerates its current investment program. OFX will acquire 100% of the company
including its client base and all its intellectual property. The transaction is projected to close in 1H24
and the consideration is comprised of up to 11.25 million deferred performance securities subject
to development and financial vesting conditions.
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 117
Notes to the financial statementsfor the year ended 31 March 2023 Directors’ Declaration
In the Directors’ opinion:
(a) the financial statements and notes for the year ended 31 March 2023 are in accordance with the
Corporations Act 2001 (Cth), including;
(i) complying with Accounting Standards, the Corporations Regulations 2001 (Cth) and other
mandatory professional reporting requirements; and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 31 March 2023
and of its performance for the financial year ended on that date,
(b) there are reasonable grounds to believe that OFX Group Limited will be able to pay its debts
as and when they become due and payable, and
(c) ‘About this Report’ on page 77 confirms that the financial statements also comply with
International Financial Reporting Standards as issued by the International Accounting
Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial
Officer required by section 295A of the Corporations Act 2001 (Cth).
This declaration is made in accordance with a resolution of the Directors.
On behalf of the Board:
Patricia Cross
Chair
23 May 2023
Skander Malcolm
Chief Executive Officer and Managing Director
118 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Independent Auditor’s Report
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 119
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of OFX Group Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of OFX Group Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • giving a true and fair view of the Group’s financial position as at 31 March 2023 and of its financial performance for the year ended on that date; and • complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprises: • consolidated statement of financial position as at 31 March 2023; • consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows for the year then ended; • Notes including a summary of significant accounting policies; and • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. Independent Auditor’s Report
120 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Key Audit Matters The Key Audit Matters we identified are: • Recognition of fee and trading income; • Taxation; • Acquisition accounting; and • Impairment of Goodwill Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Recognition of fee and trading income ($223.9m) Refer to Note 3 to the Financial Report The key audit matter How the matter was addressed in our audit Fee and trading income is considered a key audit matter due to: • Its significance to OFX Group’s results; and • The significant audit effort required considering the high volume of transactions, with unique margins on individual trades. We focused on fee and trading income generated from: • Margins on foreign currency trades; and • Movements in exchange rates realised on executing client trades Our procedures included: • Assessed the appropriateness of the accounting policy applied by the Group, against the requirements of the accounting standards. • Obtained an understanding of the process to complete a trade and record revenue. • Tested automated and manual controls over the reconciliations between the trade recording system and bank statements. • Tested the control over the reconciliation of monthly revenue to bank statements; • Tested automated controls over the feed of foreign exchange rates from external providers into the trade recording system. • Tested realised margin on trades by comparing the contracted rate in the trade recording system to independent externally published market rates and recalculating the resulting margin. • Validated realised margin on trades through reconciliation of margin to movements in bank statement balances • Compared samples of deal tickets and bank statements to validate the timing of their recording in the correct period. • Assessed the disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standard. Independent Auditor’s Report
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 121
Income tax expense ($6.1m), current tax asset ($1.1m), deferred tax asset ($7.1m), deferred tax liability ($3.1) Refer to Note 5 to the Financial Report The key audit matter How the matter was addressed in our audit Tax is considered a key audit matter due to the complexity of concessional tax arrangements available to the Group during the year, including: • A subsidiary of the Group, OzForex Limited, qualifies as an Offshore Banking Unit (OBU), which attracts a concessional tax rate of 10%. We focused on the application of OBU conditions to the Group’s transactions; and • Eligibility for Research and Development Tax Credits (R&D Credits) which further reduces the Group’s tax expense. The eligibility for these tax credits is determined by the Group based on relevant tax legislation. We involved our tax specialists to supplement our senior audit team members in assessing this key audit matter. Working with our tax specialists, we performed the following procedures: • Evaluated the Group’s policy in relation to the allocation of trades to the OBU. We assessed the OBU legal status against relevant Australian tax legislation and the wording of the policy as defined in the Group’s notes as assessable offshore banking income derived by the OBU against the criteria for OBU application of concessional arrangements in the tax legislation. • Obtained a sample of trades recorded in the OBU and checked their features from the trade recording system against the allocation methodology within Group policy. • Assessed the scope, competence and objectivity or the external expert engaged by the Group to assist in determining the eligibility for R&D tax credits claimed under the relevant tax legislation. • Assessed the appropriateness of the accounting treatment applied to R&D credits against the accounting standards. • Assessed the disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standard. Acquisition accounting Refer to Note 19 to the financial report The key audit matter How the matter was addressed in our audit On 2 May 2022, the Group acquired 100% of Firma Foreign Exchange Corporation (“Firma”) for consideration of $95.3m, resulting in the recognition of customer contracts and other intangible assets, and goodwill. Our procedures included: • Evaluated the acquisition accounting by the Group against the requirements of the accounting standards. • Read the underlying transaction agreements to understand the terms of the acquisition Independent Auditor’s Report
122 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
This transaction is considered to be a key audit matter due to the: • Size of the acquisition having a significant impact on the Group’s financial statements; • Group’s judgement and complexity relating to the determination of the fair values of assets and liabilities acquired in the transaction requiring significant audit effort. The Group engaged external valuation experts to assess the fair value of certain assets including customer contracts and other intangible assets; and • Group’s valuation model used to determine the fair value of acquired intangibles assets is sensitive to changes in a number of key assumptions. This drives additional audit effort specifically on the feasibility of these key assumptions and consistency of application to the Group’s strategy. The key assumptions we focused on in the valuations of intangible assets included forecast earnings, discount rates, client attrition rate and useful lives. We involved our valuation specialists to supplement our senior audit team members in assessing this key audit matter. and nature of the assets and liabilities acquired. • Assessed the accuracy of the calculation and measurement of consideration paid to acquire Firma based on the underlying transaction agreements and the Group’s bank statements. • Working with our valuation specialists, we assessed the Group’s external expert reports and; • Considered the objectivity, competence and scope of the Group’s external valuation experts; • Evaluated the valuation methodology used to determine the fair value of assets and liabilities acquired, considering accounting standard requirements and observed industry practices; • Assessed the key assumptions in the Group’s external valuation expert report prepared in relation to the identification and valuation of customer contracts and other intangible assets including checking forecast earnings assumptions for consistency with the Group’s valuation model used as part of the pre-acquisition due diligence process. • Independently developed a discount rate range considering comparable using publicly available market data for comparable entities, adjusted by risk factors specific to the Group and the industry it operates in. • Recalculated the goodwill balance recognised due to the transaction and compared it to the goodwill amount recorded by the Group. • Assessed the adequacy of disclosures in the financial report using our understanding obtained from our testing and against the requirements of the accounting standard. Independent Auditor’s Report
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 123
Impairment of Goodwill ($65.4m) Refer to Note 14 to the financial report The key audit matter How the matter was addressed in our audit The impairment of goodwill was considered a key audit matter due to the: • size of the balance (9.9% of total assets). • Group’s judgement and complexity relating to the determination of the value in use of the Cash Generating Unit against which goodwill is recognised. We focussed on the significant forward-looking assumptions the Group applied in their value in use model for Goodwill, including: • forecast operating cash flows, growth rates and terminal growth rates which are influenced by market conditions. The Group operates across different geographies with varying market pressures, which increases risk of inaccurate forecasts and estimation of items such as projected cash flow forecasts is inherently subjective and susceptible to differences in outcome; and • discount rate, which is complicated in nature and varies according to the conditions and environment of the specific Cash Generating Unit (CGU) is subject to from time to time. We involved valuation specialists to supplement our senior audit team members in assessing this key audit matter. Our procedures included: • We assessed the Group’s determination of CGU assets against the requirements of the accounting standards. • Working with our valuation specialists to: • Consider the appropriateness of the value in use method applied by the Group to perform the annual test of goodwill for impairment against the requirements of the accounting standards; • Assess the integrity of the value in use model used, including the accuracy of the underlying calculation formulas; • Assess the terminal value growth rate using our knowledge and experience of the Group and the industry it which it operates; and • independently develop a discount rate range having regard to publicly available data for comparable entities, adjusted by risk factors specific to the Group. • Challenged the Group’s significant forecast cash flow and growth assumptions. We compared forecast growth rates and terminal growth rates to externally available information having regard to our knowledge of the Group, its past performance, business and customers, and our industry experience. • Considered the sensitivity of the model by varying key assumptions, such as forecast growth, terminal and discount rates within a reasonably possible range. • We assessed the disclosures in the financial report using our understanding of the issue obtained from our testing and against the requirements of the accounting standards. Independent Auditor’s Report
124 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Other Information Other Information is financial and non-financial information in OFX Group Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and • assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and • to issue an Auditor’s Report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our Auditor’s Report. Independent Auditor’s Report
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 125
Report on the Remuneration ReportOpinion In our opinion, the Remuneration Report of OFX Group Limited for the year ended 31 March 2023, complies with Section 300A of the Corporations Act 2001. Directors’ responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with Section 300A of the Corporations Act 2001. Our responsibilities We have audited the Remuneration Report included in pages 50 to 71 of the Directors’ report for the year ended 31 March 2023. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. PAR_SIG_01 PAR_NAM_01 PAR_POS_01 PAR_DAT_01 PAR_CIT_01 KPMG Shaun Kendrigan Partner Sydney 23 May 2023 Shareholder information
The shareholder information set out below is current as at 13 April 2023.
Corporate Governance Statement
For FY23, the OFX governance practices complied with the ASX Corporate Governance Council’s
Principles and Recommendations. Further details are set out in the FY23 Corporate Governance
Statement, as approved by the Board, which is available on the Company’s website at:
https://www.ofx.com/en-au/investors/corporate-governance/
This FY23 Corporate Governance Statement outlines the extent to which OFX has followed the ASX
Corporate Governance Council’s Recommendations during FY23.
Substantial Shareholders
The number of securities held by substantial shareholders (holding not less than 5%) and their
associates as shown in substantial shareholder notices received by the Company pursuant to
section 671B of the Corporations Act 2001 (Cth) as at 13 April 2023 are shown below.
Name
Selector Funds Mgt (Sydney)
Pendal Group (Sydney)
Australian Ethical Investment (Sydney)
Renaissance Smaller Companies (Sydney)
Distribution of Security Holders
Number of shares
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – 999,999,999
Total
Number
Held
% of Issued
Capital
27,863,492
17,285,289
16,593,724
13,745,290
11.25
6.98
6.70
5.55
Total holders
of ordinary
shares
Number of
ordinary
shares
% of Issued
Capital
1,180
1,160
437
498
51
603,782
3,322,348
3,486,038
13,364,397
222,822,905
3,326
243,599,470
0.25
1.36
1.43
5.49
91.47
100
There were 402 holders of less than a marketable parcel of ordinary shares, based on the Company’s
closing market price of $1.48 on 13 April 2023.
126 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Shareholder information
Twenty Largest Security Holders of Ordinary Shares as at 13 April 2023
The table below includes ordinary shares issued under the Company’s Executive Share Plan
Rank Name
Units
% of Units
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Selector Funds Mgt (Sydney)
Pendal Group (Sydney)
Australian Ethical Investment (Sydney)
Renaissance Smaller Companies (Sydney)
MicroEquities (Sydney)
Mr Matthew Gilmour (Sydney)
Eley Griffiths Group (Sydney)
Perennial Value Mgt (Sydney)
Vanguard Group (Philadelphia)
Mr Gary Lord (Sydney)
Paradice Investment Mgt (Sydney)
Dimensional Fund Advisors (Sydney)
Ellerston Capital (Sydney)
Realindex Investments (Sydney)
Acorn Capital (Melbourne)
Ausbil Investment Mgt (Sydney)
Martin Currie Australia (Melbourne)
IFM Investors (Sydney)
Vanguard Investments Australia (Melbourne)
Macquarie Asset Mgt (Sydney)
27,863,492
17,285,289
16,593,724
13,745,290
11,497,822
10,577,548
10,245,166
9,203,526
7,834,280
7,500,000
6,597,760
6,394,924
5,512,292
3,668,526
3,579,700
3,529,657
3,433,371
3,421,684
3,286,823
3,286,466
Totals: Top 20 holders of fully paid ordinary shares
175,057,340
Total remaining holders balance
11.25
6.98
6.70
5.55
4.64
4.27
4.14
3.72
3.16
3.03
2.66
2.58
2.23
1.48
1.45
1.42
1.39
1.38
1.33
1.33
70.6
29.4
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 127
Shareholder information
Unquoted Equity Securities
Securities issued under the Company’s Short Term Incentive Plan and/or Executive Share Plan are subject
to vesting conditions which, if met, entitle the holder to ordinary fully paid shares in the Company.
Fully paid ordinary shares (unquoted)1
Performance rights
Options
Number
held
4,135,718
5,034,724
176,586
Number of
holders
9
77
1
1. This includes 3,936,044 shares in respect of restricted, allocated shares issued under the Executive Share Plan approved by Shareholders at the
AGM in 2018 [note 8 holders] and 199,674 unallocated shares issued under the Executive Share Plan approved by Shareholders at the AGM in
2018 [note 1 holder – OFX Group Limited]
Voting Rights
Ordinary fully paid shares
The voting rights are governed by clause 37 of the Company’s Constitution which provides that every
member present personally or by proxy, attorney or representative at a general meeting of the
Company shall, on a show of hands have one vote, and on a poll shall have one vote for every
share held.
Performance rights
Performance right holders do not have any voting rights attached to the performance rights issued
under the Company’s Global Equity Plan or legacy incentive plans.
Service rights
There are no Service rights holders.
Share options
Option holders do not have any voting rights attaching to options.
Buy-back
On 23 May 2023, the Company announced an on-market share buyback program to return funds to
shareholders as part of the Company’s capital management program while also allowing for growth.
The on-market share buyback program will be up to 10% of the Company’s fully paid ordinary shares
and will commence in June 2023.
Review of operations and activities
A review of the Company’s operations and activities during the reporting period is available within the
Directors’ Report.
128 Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273
Corporate information
Corporate information
Directors
Mrs Patricia Cross
(Appointed 20 July 2022 and Elected Chair 11 August 2022)
Ms Connie Carnabuci
Ms Cathy Kovacs
Mr John (‘Skander’) Malcolm
(Chief Executive Officer and Managing Director)
Mr Grant Murdoch
Mr Steven Sargent (Resigned 11 August 2022)
Mr Douglas Snedden
Company Secretary
Mr Brett Farrell (Appointed 9 December 2022)
Mr Adrian Wong (Appointed 23 January 2023)
Elisabeth Ellis (Resigned 9 December 2022)
Annual General Meeting
3 August 2023
Registered Office and
Principal Place of Business
Share Register
Auditor
Level 19
60 Margaret Street
Sydney NSW 2000 Australia
Ph: +61 2 8667 8000
Fax: +61 2 8667 8080
Email: investors@ofx.com
Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000 Australia
Ph: 1300 554 474
Email: registrars@linkmarketservices.com.au
KPMG
Tower Three
International Towers Sydney
300 Barangaroo Avenue
Sydney NSW 2000 Australia
Stock Exchange Listing
OFX Group Limited shares are listed on the Australian Securities
Exchange: OFX
Website
www.ofx.com
Annual Report 2023 | OFX Group Limited | ABN 12 165 602 273 129
OFX Group Limited
ABN 12 165 602 273