Slide 1: Harold Montgomery, CEO contact
Harold Montgomery, CEO 214-758-8603 hmontgomery@calpian.com Exhibit 99.1
Slide 2: Required Statement About Forecasts
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. ANY OFFER OF SECURITIES OF THE COMPANY SHALL BE MADE ONLY TO QUALIFIED INVESTORS IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS. THE SECURITIES LAWS PROHIBIT ANY PERSON WHO HAS MATERIAL NON-PUBLI
Slide 3: Best of Both Worlds: Steady Cash Flow + Explosive Growth
Best of Both Worlds • Steady cash flows • Explosive growth in India Investment Thesis: Steady Cash Flow + Explosive Growth Calpian Acquires merchant payment processing contracts for 2-3x CF Use Cash + Stock Leading Buyer in $1 billion niche business Base of steady recurring cash flow Money On Mobile
Slide 4: Experienced Management Team
• 70+ years in payments • Core team leaders together for 10+ years • Highly qualified • Very Experienced Management Team Stanford MBA 1985 Started in payments in 1987 Maharastra Institute of Technology 10 years in payments SMU MBA 1984 Started in payments in 1990 University of Houston MBA 1986, CPA
Slide 5: ISO Role in the Payments Industry
ISO Role in the Payments Industry Transaction Processors First Data, JP Morgan/Chase, US Bank, Global, Alliance Data Independent Sales Organizations (ISOs) 10,000 in the US Processors Pay Monthly Residuals ~$40/store/month Calpian’s Target Market Small Merchants 6.3 million Sales and service Process
Slide 6: Calpian History: We Did This Once Before
• We Did This Once Before • Capital Markets shut down in 2008-2009 • Re-Launched as Public Co in 2011 • 10 Years Acquiring Residuals • 500 Portfolios Underwritten, 200+ Acquired • Team Acquired 35,000+ Merchant Contracts • Structure: Seller guarantees minimum payout Calpian History Total Cash Invest
Slide 7: Steady Cash Flow + Explosive Growth
Steady Cash Flow + Explosive Growth
Slide 8: Challenges and Opportunities in India
The window for a fast, easy, reliable payment system is wide open Challenges and Opportunities In India Challenges: • • • All cash economy • Opportunities: • 650M+ cell phones • 500M+ people have to walk to pay for everything or send money home Lack of Bank Accounts – only 200m out of 1.2 billion pe
Slide 9: What Does MoM Do?
• Wide variety of uses • HUGE value proposition vs. current methods • Especially appealing to unbanked and rural • Rural to Urban migration feeds Domestic Remittance MoM is the Checkbook/Debit Card of India What Does MoM Do? Allows consumers to use their mobile phone to transact: • Pre-paid cell pho
Slide 10: How Does MoM Work?
Consumers (Currently 5,500,000) Retailers (Currently 95,000) Money on Mobile How Does MoM Work? Money on Mobile CASH CASH CASH Free to Consumer Cell Time Cell Time Cell Time SMS TEXT INSTRUCTIONS 6 Satellite TV 15 Cell Providers Utilities
Slide 11: It's very early, the market is huge
• It’s very early • The Market is HUGE • Low Success Threshold Calpian currently owns 32% of MOM and can buy up to 74% Not Much Competition – Huge Market MoM is 2x Largest Competitor • MoM= +$335K/day • Beam= $150K/day The Market is $31 billion and Growing • Cell Top up = $18 billion/yr • Domestic r
Slide 12: MoM Retailers
• 100,000 retailers expected in 2012 • Each retailer adds 80 users quickly, then more • Act as commission sales people MoM – Retailers Calpian’s first investment 94,971 Money on Mobile Retailers 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
Slide 13: MoM Unique Users
5.5 million unique users and growing (this number reduced by 500K to avoid duplication with Cellbiz) Money on Mobile Unique Users - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 MoM – Unique Users Calpian’s first investment 5,521,595
Slide 14: MoM Volume Processed
• Over USD$10 million processed in July 2012 • Domestic Remittance will drive volumes higher Money on Mobile US $ Volume Processed 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 MoM – Volume Processed Calpian’s first investment $10,386,102
Slide 15: MoM Gross Profit
• Adjusted for non - recurring items • Margin settling at .5% of gross processed volume • Gross Profit = Net Operating Revenue Money on Mobile Gross Profit $(100,000) $(50,000) $- $50,000 $100,000 $150,000 $200,000 Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- Jun- Jul- MoM - Gros
Slide 16: Compare to MPESA in Kenya
• Huge Market • Once in a Lifetime Greenfield Opportunity 15 Million $18 billion 550 Million $5.5 Billion $90 million/year Compare to MPESA in Kenya MPESA • First Mobile Money System • 5 years old • Domestic Remittance is majority of volume • Ubiquitous presence in Kenya MPESA Metrics 70% Adults 25%
Slide 17: MoM Growing Faster than MPESA
MoM Growing Faster than MPESA Comparison to MPESA Customer Growth 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 Months Since Launch MPESA Customers Money on Mobile Customers Money on Mobile vs. MPESA Customer Growth
Slide 18: Slide 18
Slide 19: Financial Projections
$173M $811M $ 2,580M $ 5,520M $ 9,739M •Calpian growth subject to available financing •MOM Fiscal year ends 3.31 Financial Projections (US$) 2012 2013 2014 2015 2016 Calpian EBITDA $1.5M $5.0M $ 10.1M $ 13.9M $ 16.4M MOM EBITDA $(3.8)M $5.1M $ 31.7M $ 70.3M $ 125.7M Combined EBITDA $(2.3)M $10.1M $
Slide 20: Harold Montgomery contact
Harold Montgomery 214-758-8603 hmontgomery@calpian.com