Eml Payments Ltd. · ASX:EML
Eml Payments — emerchants — Investor Presentation (August 2013)
31 slides from Eml Payments's investor presentation, Aug 26, 2013
Slide 1: Capital Raising Presentation
For personal use only Capital Raising Presentation 26 August 2013 1
Slide 2: Important Notice
Important Notice For personal use only emerchants refers to the Emerchants Group which contains Emerchants Limited and its We believe the information provided herein is reliable, as of the date hereof, but do not wholly owned subsidiaries including Emerchants Payment Solutions Limited. warrant its a
Slide 3: Contents
For personal use only Contents 1. Emerchants and the Placement 2. FY13 Highlights 3. FY13 Financial Summary 4. FY14 Objectives 5. Business Overview 3
Slide 4: Mission and Vision
For personal use only Mission empowering | Your Money Vision To transform the commercial payment solutions landscape by inspiring companies to demand more control, more transparency and more flexibility over their money. To deliver our stakeholders sustainable financial success. 4
Slide 5: Our History
For personal use only 5 Our History
Slide 6: Overview of the Placement
Overview of the Placement For personal use only Institutional placement of 22.73 million shares (20.8% of issued capital) Placement Size Placement will raise $7.5 million (inclusive of offer costs) Offer price of $0.33 per share: Placement Price • 7.0% discount to emerchants’ share price on 21 Augus
Slide 7: Capital Raising Accelerates Growth Ambitions
Capital Raising Accelerates Growth Ambitions For personal use only The capital raising facilitates an acceleration of sales, marketing and product development initiatives to take advantage of favourable market conditions. The Directors intend to utilise the proceeds from the capital raising to fund:
Slide 8: FY13 Highlights
For personal use only 8 FY13 Highlights
Slide 9: FY13 Business Highlights
FY13 Business Highlights For personal use only 1 Continued to enhance and evolve our product offering, including the launch to market of our inaugural Visa programs, EMV-enabled reloadable programs, Virtual Visa programs, BPAY and Direct Entry payments and 2+ dozen customized SAM features that can b
Slide 10: FY13 Business Highlights
FY13 Business Highlights For personal use only 1 We successfully completed our renounceable rights issue in Q1 of FY13, providing emerchants with working capital to invest in product development and sales. 2 We reduced expenses by over $1.0m over the prior year through the elimination of non-critica
Slide 11: FY13 Key Contract Signings
FY13 Key Contract Signings For personal use only Nimble PAID The Salvation Police Mercy Care Church of Make-A-Wish International Army Citizens (Queensland) Christ Care Foundation formerly First Youth Club (Queensland) Stop Money (Queensland) Launched in Two separate Pilot launched Expected Launched
Slide 12: What do we do? Key Customers
What do we do? Key Customers 1. Process transactions For personal use only 12
Slide 13: FY13 Financial Summary
For personal use only FY13 Financial Summary 13
Slide 14: FY13 Business Metrics
FY13 Business Metrics For personal use only 1. Total Dollar Loads increased by 35% over prior year to $134.88m. 2. Total Active Cards increased by 30% over prior year to 516,000. 3. Total Transactions increased by 48% over prior year to 3.93m. 4. Total Stored Value increased by 39% over prior year t
Slide 15: Key Business Metrics
Key Business Metrics Strong historical growth in all key metrics largely from single product offering For personal use only 0.6 160 Total dollars loaded prepaid platform Total number of active cards 140 ($millions) 0.5 (millions) 120 0.4 100 Millions Millions 0.3 80 60 0.2 40 0.1 20 0 0.0 FY09 FY10
Slide 16: Financials: Income Statement
Financials For personal use only 1. Income statement for 12 months ended 30 June Financial ('000s) FY12 FY13 Establishment and termination fees 1,710 2,274 Transaction fees 1,262 1,925 Interest received – host based stored value 533 586 Interest received – other entities 265 118 Service fee - 130 Re
Slide 17: Financials: Balance Sheet at June 2013
Financials For personal use only 2. Balance sheet at 30 June 2013 Financial ('000s) FY12 FY13 Cash 2,289 1,359 Accounts receivable 584 233 R&D receivable & mining tenement receivable 397 125 Other current assets (includes breakage accrual) 235 625 Total Current Assets 3,505 2,342 Goodwill and Intang
Slide 18: FY14 Objectives
For personal use only 18 FY14 Objectives
Slide 19: FY14 Objectives – Business Development
FY14 Objectives – Business Development For personal use only We will continue to expand our presence in our key sales verticals: Consumer Lending and Financial We partner with 3 of the top 10 lenders in this vertical and we will look to deepen our presence. Services MERC We are focused on petty cash
Slide 20: FY14 Objectives – Business Development
FY14 Objectives – Business Development For personal use only Awareness of prepaid debit as a solution for expense management and funds distribution is growing, but lags behind more established overseas markets. To build awareness of our solutions and the emerchants brand, we will be more aggressive
Slide 21: FY14 Objectives – Improving TTR
FY14 Objectives – Improving TTR For personal use only Sales cycles in the prepaid industry can be up to 12 months or more, depending on the monetary size, IT development requirements, regulatory complexity and post-sales implementation processes. The more efficient we can be at shortening this timef
Slide 22: Business Overview
For personal use only 22 Business Overview
Slide 23: What we do
What we do For personal use only Process payments made using our MasterCard, Visa and eftpos products How? emerchants and its predecessors spent > 10 years developing scalable transactions processing system. What we don’t do PCI compliant systems. We are not an ADI 3 ADI’s that settle our tran
Slide 24: What do we do?
What do we do?What we do 2. Issue prepaidoffers emerchants MasterCard clients /payment Visa / Eftpos products solutions across all 4 segments of financial card industry For personal use only Non - Reloadable Reloadable Staff incentives + Staff rewards + Marketing campaigns Loyalty rewards + Insuranc
Slide 25: Sources of Revenue
Sources of Revenue 5. Customer info system authorises For personal use only transaction and adjusts cardholder account balance 1. emerchants issues emerchants prepaid card software Set up fee CAR fee 4. Transaction 6. Transaction request sent to authorised emerchants 2. Cardholder makes a 3. Transac
Slide 26: Reloadable/Non Reloadable Cards
Reloadable/Non Reloadable Cards For personal use only DAY ONE YEAR ONE YEAR TWO YEAR THREE • Life span 3 - 5years. • Accounts generally transact 5- 10 times pm. (1) Setup fees • Average load > $100 and average unspent funds > 20% loads. Reloadable • Annuity streams (Interest / Transactions) account
Slide 27: What we do
For personal use only What we do 27
Slide 28: Cardholder SAM
For personal use only 28 Cardholder SAM
Slide 29: SAM Administrator
For personal use only SAM Administrator 29
Slide 30: Board of Directors
Board of Directors For personal use only Tony Adcock Bob Browning Non-Executive Director Chairman and Non-Executive Director Founder of Red Pill Performance Consultants Pty. Previously Partner A seasoned leader with a proven at PriceWaterhouseCoopers. track record of over 25 years. Tom Cregan Managi
Slide 31: Senior Leadership Team
Senior Leadership Team For personal use only Richard Anderson James Ingham Chief Commercial Officer Chief Technology Officer Former Vice President of Sales for 20 years commercial experience Netspend, the largest prepaid cards in information system development provider in US. and management. Bruce S