OFX Group Limited

I would now like to hand the conference over to Sander Malcolm, CEO and Managing Director. Please go ahead.

Thank you, Ash. Thank you, everyone, for joining us all. As Ash mentioned, I'm joined by James Georgeson, our CFO, and Matt Gregorowski, our stallion coach, who leads our investor relations program. James and I will take you through the pages and then there'll be some time for Q&A. The presentation will cover four sections, an overview... the performance update, first half financials, and the fiscal year 27 priorities and outlook, and then we'll go to Q&A. So let's move to slide four, PAC. The main focus of our update is on the pivot to profitability that's underway after several years of strong investment in our transformation. That investment, along with softer top-line growth, has significantly impacted our recent earnings. but before getting into that, I want to make a brief comment on the strategic review. Discussions with equals continue on a non-exclusive basis. The board is very engaged, the opportunity is still being assessed, and both parties continue to apply resources to reach a conclusion. Understandably, I cannot comment in any detail on the substance of the discussions given their confidential nature. At the outset of the strategic review, We stated that we would consider our organic and inorganic options, we would consult with our stakeholders to get their views, and we would ultimately recommend what we believe to be the best path forward. Since the review started, we've been doing that work, building proof points on the transformation and its effect on our outlook. We've engaged in lengthy and comprehensive discussions with equals and others, and we've sought and received feedback from our investors. So when we reached the point of making a recommendation, I am confident we will have completed a very thorough process with a broad range of inputs and views. Pleasingly, the proof points on the transformation are starting to become more evident, and we're starting to see a more scaled-up. I'll go into that in more detail later, but the single most important reason we undertook this, which was to grow with our clients and access a larger total addressable market, becoming increasingly evident. As you'll see later, those clients who have FX and at least one other product, whether existing clients who we have migrated or new clients at the platform, are showing that they are twice as valuable in terms of the average revenue per client that they deliver and three times stickier versus clients who only transact FX with us. It is very encouraging to see quarter-on-quarter revenue growth and to see that both first quarter versus the fourth quarter and second quarter versus first quarter and October has been a good start for the third quarter. This growth in revenue coupled with the cost actions we've taken signal the end of the investment phase and point to a return to stronger profitability in the second half and beyond. The cost actions were highly targeted and largely in areas where the cost is not directly supporting revenue generation. Let's turn to slide six and review performance in the first half. Our clients tell us that business conditions are very tough in most of the markets we operate in, and we saw that reflected in the soft top line over the half, with NOI of 89.2 million down 15% versus prior corresponding period, although this was down 2.7% versus second half 2016. NOI margin was down four basis points versus prior corresponding period but steady versus second half 26 and improving through second quarter. Underlying EBITDA for the first half was $4 million and net available cash was $36.6 million. These are both down significantly versus prior corresponding period. James will walk through the drivers of this in detail. As you will see in our outlook, we expect a material improvement in both in the second half. Average revenue per client, or ARPC, as an annual measure, slightly down versus prior corresponding periods, and broadly flat versus the second half. Amazingly, the non-FX revenue from products such as cards, subscriptions, and payment methods continues to grow up to $1.8 million in the first half, or 290% growth, and the wallet balances from clients are also up to just under $295 million. or around 390% versus prior corresponding period. Turning to slide seven, the macro environment continues to be tough in all markets, with business confidence remaining low, consumer confidence declining, interest rates increasing, and inflation persistent. Somewhat surprisingly, volatility in currency movement is also low compared to the long-term trend. The weak confidence and the low volatility meant ATVs remained subdued by historical standards as our corporate clients remained prudent in buying inventory and employing staff, preferring to do regular, somewhat smaller transactions. Pleasingly, we started to see the shift in the second quarter with more larger value payments. The penetration of all was growing slightly and our new corporate revenue growing around 15% in the second quarter versus the first quarter. The low volatility also somewhat dampened the larger value of consumer transactions, contributing to a decline in our consumer revenue of just under 7% versus the second half of 2026. Reasonably, our enterprise segment again performed well in this environment, up 32% versus the second half of 2026.

Moving to slide A, we delighted with the