Usio, Inc. · NASDAQ:USIO
Usio — Shareholder Meeting (June 2020)
25 slides from Usio's shareholder meeting presentation, Jun 9, 2020
Slide 1: Annual Meeting
| © USIO’ O Annual Meeting
Slide 2: Forward Looking
FORWARD LOOKING
Slide 3: 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
Slide 4: Investor Snapshot
| © usio’ INVESTOR $2.14 Share Price 6/8/2020 §2-WeekRange $18.6. Shares Outstanding Market Cap $1.7, Cash Debt
Slide 5: 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,
Slide 6: 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’
Slide 7: 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
Slide 8: Our ACH Model
|> our ACH Mowe! ®usio vse TARGET CUSTOMER PROFILE KEY DIFFERENTIATORS © corte TARGET VERTICALS i-p@Qeau HOW WE MAKE MONEY ‘TARGET VERTICAL CHARACTERISTICS $.70 | $41 | 60%t+
Slide 9: ACH Highlights
|> ACH Highlights Generates Cash to Invest in Growth Record Processing Volume Highest annual volume in 2019 Multiple Originating Depository Financial Institutions Only Broad-Industry focused NACHA Certified sender EHH More Funding Control ‘Same Day Funding & Late Cutoff
Slide 10: Our Prepaid Model
|> our Prepaid 'viowe! ®usio vse ‘TARGET CUSTOMER PROFILE ‘Sampling of Current Customers Q ™e% 52. FANCARDS A... 1, open: ‘TARGET VERTICALS laps om HOW WE MAKE MONEY TARGET VERTICAL CHARACTERISTICS 1%-2%| 2%4%| 40%+ |SO%+
Slide 11: Prepaid Highlights
|> Prepaid Highlights Po 69% Increase in Revenue Ql 2020 vs. Q1 2019 + R ttt Per Diems, Corporate Expense Management, Contractor Payments Sales incentives, Employee ‘Appreciation, Rewards Programs Loan/Funds Disbursements, Insurance Payments, Unique Forms of Compensation (medical trials, etc.) Refun
Slide 12: Our Merchant Acquiring Model
> Our Merchant Acquiring ‘voce! ‘SAAS and ISV TARGET PROFILE VIA PAYFAC ‘TARGET BILL CENTRIC VERTICALS a7 Bum ‘TARGET VERTICAL CHARACTERISTICS © p ®usio vse The storresr path to tHe money! LB vreeme 2 BHP sxrencrvctimiemens BC) Actoate GA Achieve sate= 555 ‘Sampling of Current Customers @ American A
Slide 13: Financials
Financials Tom Jewell SVP, Chief Financial Officer
Slide 14: Income Statement
© usio" INCOME STATEMENT
Slide 15: 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
Slide 16: 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-
Slide 17: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS USD Millions Account 12/31/19 12/31/18 Cash $2.4 $22 Restricted Cash & Settlement Funds $49.4 $57.3 Total Assets $616 $68.2 |Shorttermm/Longterm Debt Total Liabilities $54.0 $58.6 Total Equity $76 $96 Total Liabilities & Stockholder Equity $616 $68.2 Additional Information N
Slide 18: Payment Facilitation
Payment Greg Carter SVP, Payment Facilitation
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
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.
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”
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
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
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
Slide 25: PayFac Execution: Quarterly Transactions Processed
®usio’ PAYFAC EXECUTION QUARTERLY Transactions Processed 12020 93209 42019 i208 2209