Slide 1: Full Year Results Investor Presentation (ASX cover letter)
25 August 2016 For personal use only ASX Market Announcements Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 FULL YEAR RESULTS INVESTOR PRESENTATION Please find attached a copy of Emerchants Limited’s (ASX: EML) Investor Presentation on its full year results for the year end
Slide 2: Investor Presentation
For personal use only Investor Presentation 25 August 2016
Slide 3: Contents
For personal use only Contents 3 About Emerchants 6 Key Metrics 9 Sales Segments 1 7 New Products 2 1 Financials 3 1 Our Team 3 3 Contact
Slide 4: A Leader in Prepaid Payments Technology
3 Emerchants For personal use only A Leader in Prepaid Payments Technology Emerchants is an ASX listed (ASX:EML) financial services company, specialising in prepaid stored value products, with offices in Brisbane, Australia, Birmingham, United Kingdom and Kansas City, United States of America. We offer
Slide 5: Investment Fundamentals
4 Emerchants Investment Fundamentals For personal use only Sales Pipeline Revenue Acceleration Scale We generate revenues from programs that are Significant market potential exists in all of our core Gross margins averaging 78% and upwards of 90% directly sold by our sales teams and from programs seg
Slide 6: Shareholder Register
5 Emerchants Shareholder Register For personal use only Share Price Chart Major Shareholders Shareholder Shares Percentage Board and Management 52,810,579 21.7% National Nominees Limited 27,232,353 11.23% JP Morgan Nominees Australia Limited 24,960,090 10.3% HSBC Custody Nominees Pty Limited 17,068,
Slide 7: Key Metrics
6 Emerchants Key Metrics For personal use only 850+ $768.5 $2.7bn 7.3m Programs across Europe, Loads to accounts Processing volume Cards activated United Kingdom, Australia, in FY16 per annum* ($A) in 2016 United States and Canada *Total processing volume includes B2B Virtual Card Payments $23.3m 78
Slide 8: Global Reach
7 Canadian Banking Partners Partnerships European Global Reach Banking Partners For personal use only 99 17 USA/CAN UK/EU United States Banking Partners Birmingham, United Kingdom Kansas, Missouri Australian 37 Banking Partners AUS Brisbane, Australia ! Australia ! Netherlands ! France ! Ireland ! I
Slide 9: Strategic Partnerships
8 Partnerships Strategic Partnerships For personal use only Operating in 5 currencies Partnerships UK/EU ! Canadian Dollar (CAN) ! UK EU CAN USA ! Pound Sterling ( GBP) ! UK AU US ! US ! US Dollar (USD) AUS ! AU UK EU ! Australian Dollar (AUD) EU ! ! Euro (EU) Emerchants - Investor Presentation Sche
Slide 10: Sales Segments
9 Our Product Sales Segments For personal use only Incentive Shopping & Retail Reloadable B2B Virtual Mall Gift Solutions Gift Card Solutions Disbursement (GPR) Payments Consumer & Employee Retail Gift Incentives Cards AU UK EU US/C AU UK EU US/C AU UK* EU US/C AU UK EU US/C *UK launch in FY17 Launc
Slide 11: Shopping Mall Gift Solutions
10 Sales Segments Shopping Mall Gift Solutions For personal use only We are a market leader in this segment, offering industry specific best in class solutions to our customers 0 168 Programs 510 Programs Programs Australia United Kingdom / Europe United States / Canada Opportunity within Europe to Op
Slide 12: Incentive & Retail Gift Card Solutions
11 Sales Segments Incentive & Retail Gift Card Solutions For personal use only $200m $5.4b $100b Market Value* UK Market Value* Market Value* Australia United Kingdom / Europe United States / Canada • 88 Active programs • 18 Active programs • 28 Active programs • Mature market • Significant long term
Slide 13: Reloadable Disbursement Cards
12 Sales Segments Reloadable Disbursement Cards For personal use only By Region 180k Active cards* Australia United Kingdom / Europe United States / Canada Over 180K active cards in Initial gaming program expected Initial reloadable programs expected market supporting every major to launch in 1HFY17
Slide 14: B2B Virtual Payments
13 Sales Segments B2B Virtual Payments For personal use only EML processes over $2bn in payments using Virtual MasterCard ® products $2B Australia United Kingdom / Europe United States / Canada Not a key market we are Not a key market we are targeting in A long term segment we have targeting in Aust
Slide 15: Our Products Overview
14 Our Products Overview For personal use only Reloadable Cards mCard Gift Cards Reloadable, EMV-enabled prepaid debit cards, Physical and virtual cards all controlled and Non-Reloadable cards issued through specific provide instant access to funds 24x7x365 managed by the consumers mobile device. se
Slide 16: Key Customers
15 About Key Customers For personal use only Shopping Mall Incentive & Reloadable B2B Virtual Gift Solutions Retail Cards Disbursement (GPR) Payments Emerchants - Investor Presentation
Slide 17: Recently Signed Agreements
16 Sales Recently Signed Agreements For personal use only Shopping Incentive & Retail Reloadable Mall Gift Solutions Gift Card Solutions Disbursement Solutions The Bellevue Collection US Motivational Excellence Inc US William Hill / GPR AU Horizon Group US 20/20 Technologies Inc US William Hill / Ea
Slide 18: B2B Payments
17 New Products B2B Payments For personal use only A full-service B2B virtual payment platform Our B2B virtual payment platform reduces the cost of sending vendor payments, generates revenue for the payer and provides detailed remittance for payees. Payment Analysis Payee Enrolment Spend analysis pe
Slide 19: PayWith
18 New Products PayWith For personal use only Mobile driven loyalty and rewards app PayWith provides customers the ability to pay with their mobile phone or membership card and receive rewards, notifications, incentives and communications. A loyalty solution for Features & highlights ! Malls & proper
Slide 20: mCard: Mobile Linked Smart Card
19 New Products mCard: Mobile Linked Smart Card For personal use only M-Card Mobile Account Linked Funding Sources ○ $ 9 . 3 2 Points Balance Value ○ $ 3 5 . 3 5 # # Gift Card Balance ○ $ 2 4 . 4 5 Prepaid Balance Remaining ○$15,546.32 Available Credit Balance Consumer Data Card can be used Customer
Slide 21: EachWay
20 Our Products EachWay ® For personal use only EachWay Cash Load Solution ! Launch in Australia May 2016 ! UK launch in FY17 ! Technical development completed to support a US/Canada launch Emerchants - Investor Presentation
Slide 22: Financials
21 For personal use only Financials Emerchants - Investor Presentation
Slide 23: Revenue
22 Financials Revenue For personal use only Revenue by Business Unit ($A Millions) Revenue by Product ($A Millions) 30 30 25 A$23.31M 25 A$23.31M 16% 117% 81% 20 -6% 20 A$14.44M A$14.44M Millions Millions 15 15 186% 186% 10 10 A$5.18M +67% A$5.18M 5 5 0 0 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 Au
Slide 24: EBITDA
23 Financials EBITDA For personal use only ($A Millions) 6 A$5.04M 5 4 3 A$2.63M EBITDA of $5.04m after one-off Given the level of intangible payments of $460K related to amortisation inherent in our 2 the acquisition of Store recent acquisitions, and in Millions 1 -A$3.34M Financial Services LLC. fu
Slide 25: Total Dollars Loaded
24 Financials Total Dollars Loaded Prepaid Platform For personal use only By Business Unit By Product ($A Millions) ($A Millions) 800 +98.7% A$768.45M 800 A$768.45M +59.8% 700 +5.2% 700 +80.9% +80.9% 600 600 A$447.51M 500 +19.6% 500 A$447.51M Millions Millions +210.5% +123.7% 400 400 +210.5% +5.7% 3
Slide 26: Active Accounts
25 Financials Active Accounts For personal use only Total Number of Active Accounts Total Number of Active Accounts 6 6 5.38M 5.38M +291.0% +46.9% 5 +44.9% 5 -5.4% 4 +44.9% 4 Millions Millions 3 3 +172.1% +6.9% +2.8% +2.8% +155.3% 2 +155.3% 1.45M 2 1.45M +16.6% +16.6% 0.52M 0.54M 1 1 0.52M 0.54M 0 0
Slide 27: Stored Value Balances
26 Financials Stored Value Balances For personal use only Stored Value ($A Millions) - by Business Unit Stored Value ($A Millions) - By Product +34.3% 300 300 +21.1% +3.0% +248.5% +21.1% 250 250 A$219.62M A$219.62M 200 200 Millions +21.7% Millions 150 150 +124.9% +125% +20% 100 +20.0% A$75.33M 100 +
Slide 28: FY16 Profit and Loss Statement
27 For the year ended 30 June 2016 Financials ($ 000’s) 12 Months to June 2016 12 Months to June 2015 % Increase For personal use only Australia 8,134 8,637 (6%) FY16 Profit and Europe 12,562 5,799 117% North America 2,615 - N/A Total Revenue 23,311 14,437 61% Loss Statement Australia Europe 6,612 9,
Slide 29: Profit & Loss Commentary
28 Financials Profit & Loss Commentary For personal use only EBITDA up 92% Solid Demand for our Product Scale Brings Efficiency EBITDA up 92% to just over $5m. Excluding the Gross margin on a group-wide basis remained steady Cash overheads rose 46% from $9.35m to $13.70m impacts from expensing the Nort
Slide 30: Statement of Financial Position and Cash Flow
29 For the Year Ended 30 June 2016 Financials For personal use only ($ 000’s) 12 Months to June 2016 12 Months to June 2015 % Increase Statement of Cash and cash equivalents Breakage accrued 26,942 8,816 4,264 3,959 532% 123% Financial Position Other receivables and other assets Deferred tax asset 8
Slide 31: Balance Sheet Commentary
30 Financials Balance Sheet Commentary For personal use only Cash Balance Breakage Accrual Cash and Breakage The cash balance as at 30 June 2016 was $26.94m. We also ended the financial year with a breakage The combined closing cash balance and accrued This balance is a combination of surplus cash ac
Slide 32: Leadership Team
31 Our People Leadership Team For personal use only Tom Cregan Eric Mettemeyer David Shewmaker Rachelle St Ledger Managing Director and CEO - USA & Canada CEO - UK/Europe CEO - Australia Group CEO Tom leads the team in managing the growth of one of Eric brings more than 20 years of global business W
Slide 33: Board Members
32 Our People Board Members For personal use only Tom Cregan Managing Director and Peter Martin Non-executive Chairman Group CEO Tom leads the team in managing the growth of one of Mr. Martin was formerly the Chief Executive Officer Australia’s largest prepaid companies. Tom brings of Rothschild Austr
Slide 34: Enquiries
For personal use only Enquiries Tom Cregan Rod North Managing Director & Group CEO Bourse Communications tcregan@emerchants.com.au mobile. +61 408 670 706 Bruce Stewart Chief Financial Officer rod@boursecommunications.com.au bstewart@emerchants.com.au