Usio, Inc. · NASDAQ:USIO

Usio — Investor Presentation (July 2020)

30 slides from Usio's investor presentation, Jul 7, 2020

  1. Slide 1: Investor Presentation

    © USIO’ Investor usio.com USIO Nasdaq Listed

  2. Slide 2: Forward Looking

    FORWARD LOOKING

  3. Slide 3: Company Overview & ACH

    © USIO’ Company Overview & ACH Louis Hoch President & CEO

  4. Slide 4: About Usio

    ABOUT US!O Founded in 1998 USIO (NASDAQ: USIO) is an emerging leader in the FinTech landscape, with solutions including Payment Facilitation & Third-Party Processing, NACHA Certified Third-Party Sender and an end-to-end Prepaid Card Issuing platform. USIO's innovative and proprietary payment enablem

  5. Slide 5: Investor Snapshot

    | © usio’ INVESTOR $2.06 Share Price 7/1/2020 §2-WeekRange $20.4, Shares Outstanding Market Cap $1.7. Cash 3/31/2020 Debt

  6. Slide 6: Annual Revenue

    ANNUAL REVENUE Millions © usio’ $2820 $2400 3.Year CAGR gisay SUAS sus? 2017-2019 $12.08 58 +2016 op ne revenue decreased due toa cent 2013 2042015206028 2019 (= Revenue seling a portion of their ‘merchant processing,

  7. Slide 7: Transactions Processed Per Year

    M2 “3 TRANSACTIONS PROCESSED PER YEAR 16 14 B 12 g 10 238 6 4 27 2 0 23 109 20132014 2015 2018 [1 Transactions 2017 2018 2019 © usio’

  8. Slide 8: Dollars Processed Per Year

    DOLLARS PROCESSED PER YEAR $3500 $3000 2e78 $8.00 $2918 $2500 $2000 Millions $1500 $1000 $500 _ 8630 $0 s28%0 $3400 20132044 20152016 7 Dollars 2017 2018 ®usio’ $3510 2019

  9. Slide 9: Our ACH Model

    © usio’ OUR ACH MODEL TARGET CUSTOMER PROFILE TARGET VERTICAL CHARACTERISTICS a 7

  10. Slide 10: Key ACH Differentiators & How We Make Money

    © usio" KEY ACH DIFFERENTIATORS & HOW WE MAKE MONEY KEY DIFFERENTIATORS HOW WE MAKE MONEY \d-industry focused NACHA S$.70 | $.41 | 60%t+ * funding control cn nt innovation wil player in real-time pa

  11. Slide 11: Prepaid Card

    © USIO’ Prepaid Card Houston Frost SVP. Corporate Development & Prepaid Card Services

  12. Slide 12: Our Prepaid Model

    © usio’ OUR PREPAID MODEL TARGET CUSTOMER PROFILE

  13. Slide 13: Card Issuance & Money Disbursement

    ®usio’ CARD ISSUANCE & MONEY DISBURSEMENT Services: Debit Mastercard Issuance (Physical) Virtual Mastercard Issuance Other Disbursement Services: oe ACH Processing (Direct Depost) Push to Debit Card Payments Peper Checks B) ates a Use Cases: =~ . o Emergency Relief Assistance oho = Corporate Expense

  14. Slide 14: Physical Cards

    ®usio’ PHYSICAL CARDS + Debit Mastercard with web and mobile access, plus SMS transaction alerts + Ship to any address in the U.S. or order in bulk + Can be anonymous / unregistered a

  15. Slide 15: Virtual Card Solution

    VIRTUAL CARD SOLUTION + Send funds to any email or smart phone in the U.S. Q + Provision virtual card to Apple, Google or Samsung Wallets + Use virtual card number for online or phone purchases + Convert virtual card to a physical card

  16. Slide 16: Options & Features

    OPTIONS & FEATURES Creating and Loading Cards Batch fle ia SFTP Webservices API Contact client representative Card Program Customizations Branded card and card package ‘Anonymous or KYC-required cards* ATM access (onablodidisabied) Merchant Category Code (MCC) restrictions Branded web and mobile app

  17. Slide 17: Why Prepaid Wins

    ®usio’ WHY PREPAID WINS We offer turn-key and custom card issuance solutions that cover a wide-range of applications and use cases. The flexibility of our platform and availability of ready-to-issue card programs enables us launch programs quickly and efficiently. While market incumbents tend to foc

  18. Slide 18: Payment Facilitation

    © USIO’ Payment Greg Carter SVP, Payment Facilitation

  19. Slide 19: What Is Payment Facilitation?

    ®usio’ WHAT IS PAYMENT FACILITATION? Since inception, Usio has been processing card payments. Payment Facilitation (PayFac) is simply the latest innovation in merchant acquiring, providing frictionless merchant onboarding, enrollment and automated risk/underwriting procedures - which have traditiona

  20. Slide 20: Target Audience

    ®usio’ TARGET AUDIENCE Leveraging its multi-functional, proprietary payment enablement platform and broad capabilities spanning the issuing and acquiring environments, USIO serves the Integrated Software Vendor ("ISV") marketplace as well as Enterprise Level Merchant Businesses.

  21. Slide 21: Rationale for Software Enabled Payments

    ®usio’ RATIONALE FOR SOFTWARE ENABLED PAYMENTS tr in potent are addressable as potential PayFacs USIO's primary target is an (oaths } : { Zig ‘ \ agreeing, 7 / $200 ISV or technology provider Hy = sisco With between $3MM and Tae ’ $30MM in ARR. $1,000 10% $500 ciherSV $0 SMBis where the moneyis at”

  22. Slide 22: Advantages of Payment Facilitation for ISVs

    ®usio’ ADVANTAGES OF PAYWVENT FACILITATION FORISV’s Advantages of becoming a PayFac for ISVs & tech platforms (vs. a traditional integrated payments relationship) + Create a recuring revenve stream (combination of Revenue generate. teers wmighad a merce share oppor va These are core fundamentals a t

  23. Slide 23: Payment Facilitation Value Proposition

    PAYMENT FACILITATION VALUE PROPOSITION Aston! eons conde noe tm + tartan ees Gone emo, bata mat ®usio’ USIO eliminates the time and financial hurdles of becoming a Payment Facilitator. How? NOTREQUIRED - Leverage USIO infrastructure and expertise NOTREQUIRED - All included in USIO PayFac-in-a-Box. N

  24. Slide 24: PayFac Execution Quarterly: Volume Processed

    ®usio’ PAYFAC EXECUTION QUARTERLY Volume Processed 60,000000 50,000000 140,000,000 10,000,000 ° 12018 22019 3209 4209 12020

  25. Slide 25: PayFac Execution Quarterly: Transactions Processed

    ®usio’ PAYFAC EXECUTION QUARTERLY Transactions Processed 12020 93209 42019 i208 2209

  26. Slide 26: Financials

    © USIO’ Financials Tom Jewell SVP, Chief Financial Officer

  27. Slide 27: Income Statement

    © usio" INCOME STATEMENT

  28. Slide 28: Revenues by Category

    REVENUES BY CATEGORY ACH and Complementary Service Revenue Credit Card Revenue Prepaid Card Services Revenue Total Revenue March 31, March 31, 2020 2019 $Change _% Change $2,237,746 $2,357,786 $(120,040) (6.1%) 4,982,658 3,904,406 1,078,252 27.6% 551,275 325,840 225,435 69.2% $7,771,679 __$6,588,032

  29. Slide 29: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Non-GAAP Reconciliation (Values in Millions) Revenues Reconciliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) Depreciation and Amortization EBITDA Non-cash stock-based compensation expense, net Adjusted EBITDA $ vow low ‘Twelve Months Ended 31-

  30. Slide 30: Balance Sheet Highlights

    BALANCE SHEET HIGHLIGHTS USD Millions ®usio’ Account 3/31/20 12/31/19 12/31/18 Cash $ 17 $ 21 $ 22 Restricted Cash & Settlement Funds $ 384 $ 494 $ 573 Total Assets $ 503 $ 616 $ 682 Total Liabilities $ 433 $ 540 $ 586 Total Equity $ 70$ 76$ 96 Total Liabilities & Stockholder Equity $ 503 $ 616 $ 68

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