Slide 1: Interim Results for the half year ended 30 June 2022
Interim Results for the half year ended 30 June 2022 27 September 2022 Jon Prideaux Keith Butcher
Slide 2: Presentation team
Presentation team Jon Prideaux, CEO Keith Butcher, CFO CEO since 2014 Director from 2017, CFO from 2019 Formerly EVP at VISA and Formerly CFO of LSE listed payments Deputy CEO at Secure Trading companies DataCash and Paysafe © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku
Slide 3: Core KPIs growing strongly
Core KPIs growing strongly Boku 2022 • Monthly Active Users up 8.4m (22%) to 46.3m Interim Results in June 2022 (June 2021: 37.9m) • Most of Boku’s global merchants now also taking LPMs via Boku • Over 50 new launches in H1 2022 inc: Netflix, Meta, Amazon, Spotify, Samsung, Sky and EA Games LPM inve
Slide 4: Highlights
Highlights
Slide 5: Trusted by leading merchants
Trusted by leading merchants Direct carrier billing, eWallets, real-time payments and bundling App Stores Video Streaming Music Streaming Advertising SaaS Software Console Gaming Gaming © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, In
Slide 6: 2022 H1 Trading Update – Key financials
2022 H1 Trading Update – Key financials • Payments revenues $30.3m. FX Headwind of $2.5m, Payments revenue ($m) constant currency growth of 7% (H1 2021: $30.7m) +7% • H1 2021 comparative also had covid ‘bump’ • Payments adj. EBITDA $9.5m (H1 2021: $11.2m) • FX headwinds • continued investment in mob
Slide 7: 2022 H1 Trading Update – operational KPIs
2022 H1 Trading Update – operational KPIs Total Payment Volume (TPV) Underlying Payment metrics healthy +14% • Monthly Active Users up 8.4m (22%) to 46.3m in June 2022 (June 2021: 37.9m) • 28.8m new users made their first payment or bundling transaction with Boku in H1 2022 • TPV up to $4.3bn – high
Slide 8: 2022 H1 Trading Update – strong growth in new payment types
2022 H1 Trading Update – strong growth in new payment types Monthly Active Users - New LPMs Strong growth in new payment types eWallets and real-time payments • 11x increase in volumes in H1 processed from eWallets and real-time payments compared with H1 2021 • MAUs of eWallets and real-time Payment
Slide 9: Strategy Update
Strategy Update
Slide 10: Visa and MasterCard - An unstoppable juggernaut?
Visa and MasterCard - An unstoppable juggernaut? Total Payment Volume ($USD Tn) Constant growth, pushing out cash and cheques Flexible • reimagined for eCommerce • support recurring transactions • contactless Duopoly with pricing power • Which legal, regulatory and merchant pressure has not been abl
Slide 11: Globally, absolute growth masks relative decline
… globally, absolute growth masks relative decline Source: Worldpay reports 2012-2021 © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 11
Slide 12: Local payment methods are complicated
Local payment methods No Central are complicated Governance Individual Hundreds of Technical Payment Integrations Brands • Local cards • Buy Now Pay Later • Account to Account • Cash on delivery Payments • Prepaid vouchers / Mobile Payment challenges • Carrier Commerce Giftcards Complicated X-Border
Slide 13: Boku Core Proposition: aggregate and simplify
Boku Core Proposition: aggregate and simplify Reach 7 billion mobile payment accounts, 300+ payment methods in over 90 countries One Integration - One Contract - One Settlement © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc.
Slide 14: Mobile-first network expansion
Mobile-first network expansion Taiwan Nigeria Thailand Pakistan Philippines Payment License © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku, Inc. 14
Slide 15: Growth in users and volumes on the Boku Platform
Growth in users and volumes on the Boku Platform 46m Monthly Active Users Total Payment Volume 99% Repeatable Payments (on file) +22% +14% MAUs in month of period end, includes bundling TPV in constant currency in 2021 and 2022-H1. TPV is the US$ value of transactions processed by the Boku platform
Slide 16: Boku now has major contracts with all world's digital giants
Boku now has major contracts with all world’s digital giants Merchant Carrier Commerce New Local Payments Amazon New major LPM contract Sony Meta/Facebook Netflix Spotify Google Microsoft © 2023 Boku Inc. All rights reserved • PROPRIETARY AND CONFIDENTIAL • ‘Boku’ is a registered trademark of Boku,
Slide 17: Boku drives Netflix subscription growth in Asia
Boku drives Netflix subscription growth in Asia [...] Netflix is going beyond that to attract sign-ups through innovative payment methods, like allowing users to include their subscription fees in their monthly phone bills or pay via digital wallets. Netflix offers a wider range of payment choices i
Slide 18: Multi-year contract with Amazon
Multi-year contract with Amazon • New contract for LPMs only in Asia/Africa • Won against significant competition • Warrants of maximum 3.75% for hitting transformational levels of revenue over 7 years • Expected launch in 3-4 months • 12 wallets in 5 countries • Amazon Prime initially – expansion e
Slide 19: First China launch - major existing merchant
First China launch - major existing merchant Initial performance since launch • 1st launch of major existing customer into China in September • Using Alipay wallet – world’s largest eWallet • Initial performance – significant volume increase • Further expansion with merchant to include other Chinese
Slide 20: Summary and outlook
Summary and outlook 2022-H1: Strong growth in core business and new LPMs • Core metrics strong – TPV and new users - strong growth • Solid growth in constant currency – Revenue and EBITDA • Strong growth in new payment types - eWallets and real-time payments (11x) • Investment in expanded mobile fir
Slide 21: Our Values
We're committed to the long-term growth of our customers, even if it costs us more in the short run. Our Values Things might not happen as planned Stay calm, alter course and move on Trust and respect each other. Encourage others to do the same. Welcome others’ opinions and ideas. We're all on the s
Slide 22: Appendices
Appendices
Slide 23: Mobile-first payment network
Mobile-first payment network One connection to reach up to 7 billion accounts Back Office Payment Methods Front Office Fraud Back Office Direct Carrier Billing Payment On-File Payment Panel Tokenized for Recurring No-API integration to Prevent purchase Disputes, Refunds & (1-tap) & Subscriptions (0-
Slide 24: Global online payments market
Global online payments market Boku provides merchants with the most global and mobile-first payment options Generalist PSPs Specialist PSPs Global Giants (Highly-established players) Global Merchant Focus (delivering mobile-first consumers) $10bn market cap $5B valuation $43B acquisition $12B market
Slide 25: Slide 25