CEO’S LETTER Dear shareholder I am delighted to be presenting my first annual report as Managing Director and CEO of the OzForex Group. We have had a turbulent year, with a number of challenges thrown our way. I am very proud of the courage and resilience demonstrated by our leadership team as we actively dealt with a range of external events, whilst at the same time putting in place the foundations of our new strategy. This testing period has placed us in a position to flex the operations of the business and allowed me to deeply understand the levers we have and where we need to strengthen our capability. Whilst the fundamentals of our business remain incredibly strong, we have to continue to innovate and iterate like all modern companies in an increasingly technologically driven world. We spent a lot of time considering our key strategic questions, and now have real clarity on our future direction, our growth ambitions and the tactics to achieve them. I believe that good strategy is about making clear choices, and that we have made significant strides in detailing our path forward and are now well underway in executing the vision. We are a global Fintech company competing in an enormous market where we have a distinct and unique position that will scale significantly with marketing and sales investment. RICHARD KIMBER MANAGING DIRECTOR AND CEO During the year, we saw net operating income pass the significant $100million milestone, with a large portion of that revenue being derived offshore. This milestone is a key point in setting a baseline for our growth objective. ACCELERATE STRATEGY At the AGM in August 2015, I presented the Company’s Accelerate Strategy and our goal to double FY16 revenue to $200million by FY19. The Accelerate Strategy is based around three pillars of increasing penetration in the Australian market, leveraging our global footprint outside Australia and targeting adjacent products. To deliver on this strategy, 2017 will be focused around strengthening our core customer proposition and building an even more scalable and agile digital platform. As we outlined at the AGM, we will be making additional investment, and 2017 will see selected cost expansion to support the strategy, and flatter overall profit, before we see the benefits of the investment paying off towards the end of the year and then into 2018 and beyond. A NEW BRAND Most significantly, during the year, OzForex Group made its first step in its global rebranding away from its geographically specific naming standard to becoming a single global brand and domain – OFX (www.ofx.com). This initial step occurred in December with the launch of the OFX brand and totally new public website in Australia. The benefits of this change will be seen in marketing efficiencies and in stronger brand recognition across our international operations. We will invest in our brand by broadening our marketing channels beyond search marketing to include marketing in social media, television, print and other channels. Our advertising will be highly targeted using our data platform to ensure that we achieve greater awareness, consideration and conversion. Our customers have always endorsed our services, and we consistently achieve net promoter scores above 65%; this drives great word of mouth referrals. The opportunity to spread the word more widely and increase awareness of our services is one we must harness. 24/7 Since January, we have been delivering 24/7 service to our customers using our ‘follow the sun’ service model, enabling our customers to transact at a time that suits them and have access to our customer service team for help when they need it. This is a clear example of harnessing latent opportunity within our business. We have identified a number of other areas to leverage our existing scale and operational reach. PEOPLE AND CULTURE During the year, we moved our Sydney headquarters to a more modern working environment. We also used this move to re‑articulate our beliefs and behavioural norms. Achieving our growth plans will require a strong performance-oriented culture, where diversity and inclusion are harnessed to achieve great results. I am very keen to foster an environment where everyone in our team feels empowered to take initiative and challenge outdated conventions for a better outcome. The OFX team grew globally to more than 270 by year end, and we expect that the growth will be similar in the 2017, year with particular emphasis in the technology and product teams. PRODUCT DEVELOPMENT OFX has a proprietary technology platform that has been built over several years. There is a significant amount of intellectual property in our software, and we will continue to invest in the scalability of our platform and the way we develop and deploy our code to support our growth. As OFX’s platform continues to evolve, we are very focused on accelerating the pace of delivery and, to achieve that, we will move our systems to a cloud-based environment using Amazon Web Services during 2017. Craige Pendleton-Browne, our new Chief Technology Officer has taken over the leadership of our product teams and integrated them with the technology teams. This approach is already seeing an increase in the number of features we are able to launch per release and a tighter linkage between our business and technical teams. During 2016, we delivered a new transactional mobile app, enabling our customers to make international payments wherever they are and whenever they want. There have been more than 55,000 downloads of the app since it was launched in August, with one in 10 transactions now being undertaken on a mobile device. I expect this proportion will continue to grow. BANKING PARTNERS AND BREADTH OF CURRENCIES Our banking partners are an integral part of our business model. We were delighted to add to the strength of our banking relationships during the year with the addition of another two key global banking partners supporting our growth, particularly in important markets in New Zealand, India and some Nordic countries. During the year, we increased the number of countries that we paid to almost 200, using the 880 currency pairs available to us. PROFITABLE GROWTH OFX is well positioned to address the vast opportunity in the international payments market. There remains significant growth in current and new geographies. Our strategic priorities are to: •  Continue penetration in our primary market of Australia and New Zealand through efficient online engagement and building of brand awareness through diversified marketing channels in social media, online, mobile and television; •  Place clear emphasis on international expansion, with particular focus on North America; •  Continue evolution of the technology platform and move to an AWS cloud-based environment to enable rapid innovation and cadence in delivery of features; •  Continue development of our customer service model through product innovation; •  Further embed ourselves in ecosystems with global brands. We have made a substantial start on our Accelerate journey and have the financial resources and balance sheet to internally support the investment in our organic growth. OUTLOOK We are well on our way to the goal we set ourselves of delivering $200million in revenue by 2019. We have bolstered our leadership, begun our move to a single global brand under OFX, developed a clear marketing strategy and are increasing the speed of innovation through a cloud-based technical environment and an empowered global team. We are confident and excited about our future. Thank you for your ongoing support.