CHAIRMAN AND CEO’S LETTER It is our pleasure to present to shareholders the OzForex Group Limited’s Annual Report for the financial year ending 31 March 2015. A recent business review of the competitive environment and current and future market opportunities provided renewed confidence and clarity about the strategic direction of the Company. WELCOME// It is our pleasure to present to shareholders the OzForex Group Limited’s Annual Report for the financial year ending 31 March 2015. A recent business review of our business model, the competitive environment and current and future market opportunities provided renewed confidence and clarity about the strategic direction of the Company. PETER WARNE// CHAIRMAN OzForex is a pioneer in the international payments industry, an industry that continues to grow and evolve. As we ourselves have evolved, we have continued to invest in our people, our processes and our technology. This investment and innovation is critical in an environment where banks continue to improve their online proposition and our current and future customers are expecting an all-channel experience from their service providers. Within this changing landscape we continue to thrive, driving double digit growth across all our key performance indicators. We strive to differentiate ourselves from our competitors by being customer-led, enabled by nimble marketing and supported by state-of-the-art technology. STRATEGIC HIGHLIGHTS// We continue to focus on enhancing the customer experience and improving our business performance and we have been pleased with the growth shown in our operational and financial metrics. During the year there were a number of highlights: NEIL HELM// CEO •• Customer experience We delivered improvements to our all-channel customer experience with a focus on mobile optimisation. We also converted all our desktop pages to ‘be mobile responsive’ in reply to a change in the Google search algorithm. This change in the search algorithm favoured mobile friendly web pages in search results which is an important source of both business and consumer clients for the company. •• Marketing A number of new marketing tools were implemented to aid more efficient and smarter execution of search engine marketing campaigns. These same tools also open up new digital marketing opportunities outside of ‘paid search’ as we look to broaden our customer acquisition channels. In addition, we completed our brand work and have a clear path forward in the year ahead in line with focus on other strategic initiatives. •• Regional --  Since 1 April 2014 we have added another 6 licences in the key North America market, which means we can operate in 47 US states. -- Established a corporate dealing team in Auckland, New Zealand. -- Appointed a new Head of UK. •• Wholesale The Wholesale business continues to grow on the back of existing branded partnerships and web services relationships and we recently integrated into the Cloud based accounting business SAASU which will provide a new revenue stream and important insights into this industry vertical. •• Banking relationships The transition of services that were being provided by Westpac to alternative providers is now complete and we have added new global banking partners who clearly understand the global opportunity that our industry provides. We will continue to focus on enhancing existing and building new banking relationships. We consider our network of banking partners to be a key strategic asset and competitive advantage for our business. •• Risk and compliance Our compliance obligations continue to grow to meet the regulatory requirements of an increasingly global footprint which has led to an increasing number of government organisations that regulate us this financial year against last year. In turn we continued investing in our systems and staff to manage the complexities of working in so many different regulatory environments. The size of our Risk and Compliance team has increased by more than 100% during the year with a number of senior positions recruited leading to improvements in the quality of the risk and compliance framework. These improvements are evident in the favourable outcomes we have received from the required regulatory examinations conducted in a number of jurisdictions. KEY FINANCIAL HIGHLIGHTS// Pro forma Net Operating Income increased by 24% to $90.1M Pro forma NPAT increased by 21% to $24.3M The cash position net of client liabilities increased 21% (pre dividend) from $41.0m in FY14 to $49.4M KEY OPERATIONAL HIGHLIGHTS// Active Clients grew by 18% to 142.5k New Dealing Clients grew by 11% to 60.7k Transaction Numbers grew by 21% to CAPITAL MANAGEMENT// OzForex has a robust balance sheet with no external interest bearing debt and strong cash flow conversion. This strong financial position allows us to continue to invest in the business to meet our goals and execute on our growth strategies. We will continue to focus on growth in net operating income and EBTDA but with a watchful eye on the evolving nature of our industry. SHAREHOLDER RETURNS// The Board are pleased to announce a dividend of 3.584 cents per share fully franked. The dividend payment will have a record date of 12 June 2015 and a payment date of 26 June 2015. The Group’s dividend policy is to payout approximately 70%-80% of NPAT per annum. THE BOARD// The OzForex Group Board is committed to ensuring our business is conducted ethically and in accordance with the highest standards of corporate governance. We recognise the importance of governance, environmental and social matters to our shareholders and other stakeholders and continually review developments in these areas which are relevant to our business. The Board is still relatively small and our Remuneration and Nomination Committee chaired by Melinda Conrad (Non-Executive Director) continues to run a Board selection process to identify and appoint, when appropriate, Non-Executive Board members with the right balance of attributes, personality, and skill sets. Our ambition is to have a Board with a diversity of perspective, a collective set of competencies that will increase the ability to ask critical questions and assess information, in addition to planning, stewardship and governing responsibilities. In March this year, Mr William Allen retired as Director from the OzForex Group. Mr Allen had been a Director of the previous unlisted parent company, OzForex Limited since February 2012. We also announced the appointment of Mr Douglas Snedden as a Director of the OzForex Group Board. Mr Snedden spent almost 30 years at Accenture, a global management consulting, technology services and outsourcing company. OUR PEOPLE// This year staff numbers increased by 38 to 246. We moved to a new office in San Francisco and have expanded the space in our Toronto office. We have also introduced a new cash-based incentive scheme for all staff below the Executive Team level to further drive engagement and align to company performance and to assist in attracting and retaining high calibre people. We continue to invest in training and development programs and our Human Resources team has increased its capability and capacity. The maintenance and enhancement of our culture remains a critical focus point for the Executive Team. We gather regular feedback from our staff through our staff engagement surveys. In our most recent engagement survey, we were pleased to see good results across a number of areas including in engagement and the Company’s approach to diversity and work/life balance. ANOTHER STRONG YEAR// 702.8k We would like to take the opportunity to thank the following groups: Transaction Turnover grew by 22% to •• the Board for their guidance and contribution to the direction and oversight of the Group $16.6B •• our clients for trusting us with their international payments and for referring our services to friends and business networks •• the staff at OzForex for their passion and hard work over the year •• our more than 7,500 shareholders for their continued support •• our business partners for their ongoing support and feedback on the services and solutions we offer •• our global banking partners for their ongoing willingness to support our business model. OzForex is excited by the future and is committed to making global easy for our customers. We look forward to updating you, and meeting as many shareholders as possible at the Company’s Annual General Meeting on 5 August 2015. PETER WARNE// CHAIRMAN NEIL HELM// CEO