Slide 1: A Leader in Cashless Transactions, Networked Services, and Energy Management
pppp A Leader in Cashless Transactions, Networked Services, and Energy Management
Slide 2: Forward Looking Statement
Forward Looking Statement With the exception of the historical information contained in this presentation, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limi
Slide 3: Significant Market Opportunity
Significant Market Opportunity * “Vending Times” Census ** IHL Group *** “Automatic Merchandiser” magazine USAT believes that it has a significant opportunity to penetrate several large markets, particularly the vending market.
Slide 4: Investment Highlights
Investment Highlights Significant Market Opportunity – Vending industry and other unattended markets are large, global and underpenetrated Market is Positioned for Rapid Growth – Driven by technology improvements, consumer demand, improvements in payment card regulations, and vending industry dynami
Slide 5: ePort for Cashless Vending
ePort® for Cashless Vending Enables cashless payments including credit/debit Designed for rapid retrofit – 10 minutes or less • Instantly on network Turnkey wireless connection Provides operators with online access to sales data Multiple forms of cashless payment including credit/debit cards Custome
Slide 6: ePort Connect Service
ePort Connect Service A PCI compliant, end-to-end, suite of cashless payment and telemetry services tailored to fit the needs of self-service retail industries. Card Wireless Online Sales Consumer Settlement Data Over the Air Processing Connectivity Reporting Services Security Updates & Services DEX
Slide 7: ePort Connect Service PCI Certification
ePort Connect Service Attained Certification for Card Industry’s highest level of security – PCI Level One Service Provider P.T.C.R.B. Certified
Slide 8: Web-Based Reporting for Distributed Assets
Web-Based Reporting for Distributed Assets
Slide 9: 24/7 Customer Service
24/7 Customer Service Carctnember Statement
Slide 10: Cashless Transactions
Cashless Transactions Takes all forms of cashless
Slide 11: New ePort G8
New ePort G8 Wireless, cashless transaction system Compatible with many more unattended point-of-sale appliances 65% smaller than G7 making it easier to install Compatible with pre-pay and GoTag program available through First Data Combines traditional mag-stripe and RF payment capabilities Lower co
Slide 12: New ePort EDGE
New ePort EDGE™ Wireless, cashless transaction system Fully integrated one-piece design Compatible with pre-pay program available through First Data Faster transaction processing due to a more powerful processor Easier installation - 5 minutes Lower cost - designed to accelerate adoption
Slide 13: New ePort SDK
New ePort SDK The SDK enables kiosks, toll booths, gaming units, venders, photo booths and other devices to accept cashless payment. 2) . End-to-end encryption ®@ ort Compatible with any Windows or Unix y platform parent applications *PCI DSS compliant. Alternative to traditional Point-Of-Sale (POS)
Slide 14: New eSuds Credit Multi-family Housing
New eSuds Credit Multi-family Housing eSuds Credit on all washers and dryers eSuds credit differentiates MFH complex and Coinmach from competition Increase in resident satisfaction due to laundry service Reduced downtime via machine health alerts
Slide 15: Sw ARAMARK «(MBM///AutoZone’
Oo) Sw ARAMARK «(MBM///AutoZone’ ; @DR PEPPER _ D vecsi ae va WAL*MART SONY. @ SNAPPLE CANTEEN
Slide 16: Unattended Kiosks
Unattended Kiosks Sony PictureStation Fantasy Photobooth Merit Megatouch AIR-serv 600 Billion in transaction volume 2008. 1.7 Trillion transactions will pass through kiosks by 2012. – IHL Group, June 19, 2008
Slide 17: Key Customers
Key Customers ePort is driving increased sales Provides consumers with speed and convenience Driving process efficiencies via on-line reporting for sales and accounting Alerts increase operational efficiencies and sales
Slide 18: Key Customers
Key Customers Installing ePort SDK on new countertop touch screen gaming systems Cashless capability driving increased “plays” Provides transaction and participation activity reports
Slide 19: Key Customers
Key Customers Cashless and remote management capability “point of difference” for AIR-serv Speed and convenience in an “on-the-go” market Provides sales accountability Health alerts reducing downtime
Slide 20: Key Customers
Key Customers Market opportunity: $4 billion office coffee market 1 million office coffee placements* *”Automatic Merchandiser” magazine
Slide 21: Product Overview
Product Overview Customer Economics Less than 1 year payback Saves 40% of electric bill per unit Average electric bill/unit ~ $300 per year • [Missing Graphic Reference]Average sales price of $90.00 Initial market is U.S. install base of 4 million refrigerated beverage vending machines
Slide 22: eSuds Product Overview
eSuds™ Product Overview Online availability of washers and dryers Payments via student ID or PIN “Cycle Done” notification Email Cell Phone Pager Customer Economics Less than 1 year payback 15% increase in sales Insulate contracts/gain share Hardware cost $200/unit $2.50/month/unit network service c
Slide 23: USAT Results to Date
USAT Results to Date USA Technologies has nearly 600 distinct customers (e.g. bottlers, operators) with 57,000 terminals on the ePort Connect Service. 12/31/06 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 Cashless Terminals Installed Base by Quarter
Slide 24: Roadmap to Profitability
Roadmap to Profitability 120,000 114,000 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 Projected Cashless Terminals Installed Base by Quarter Positive Net Income Projected by December 31, 2010
Slide 25: USAT Results to Date
USAT Results to Date USA Technologies is processing 7.4M transactions $12.5 M $11.6 M 7,400,000 $11.3 M $10.6 M $10.4 M $10 M $9.0 M $7.7 M $7.3 M $7.5 M $6.7 M $5.5 M $4.8 M $5 M 12/31/06 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 # transactions $ tran
Slide 26: USAT Results
USAT Results Nilson Report named USAT as #6 in U.S. for Point of Sale Terminal shipments. ©2009 The Nilson Report
Slide 27: Key Industry Trends
Key Industry Trends USAT believes that the confluence of several compelling drivers will help to drive significant vending market adoption.
Slide 28: Key Industry Trends: Consumer Drivers
Key Industry Trends Consumer Drivers Generation Plastic (or Generation “P”) represents a paradigm shift in how we buy 60% of 18-25 year olds use their Credit or Debit card for “everyday purchases” 80% of them cite “convenience” as the primary reason 70% of 18-25 year olds routinely use their payment
Slide 29: Key Industry Trends
Key Industry Trends The customers in our target markets are striving to... * Decrease labor costs * Increase operating efficiencies * Increase profit margins * Offset rising costs * Make their product or service available to larger customer base * Explore new sales channels without adding operationa
Slide 30: Strategic Partnerships
Strategic Partnerships VISA DIScoyER TD CHASES” jy Elavon Paymentech all First Data. WIRELESS Se atat CO ROGERS Contract GS-35F-0031R > ENERGY . STAR ELS Schedule Lait Sen 7
Slide 31: Experienced Management Team
Experienced Management Team George R. Jensen, Jr. , Chairman and Chief Executive Officer Mr. Jensen has been the Chief Executive Officer and Director of USA Technologies since January 1992. He is the founder, and was Chairman, Director, and Chief Executive Officer of American Film Technologies, Inc.
Slide 32: Committed and Engaged Board
Committed and Engaged Board George R. Jensen, Jr., Chairman of the Board and Chief Executive Officer Mr. Jensen has been the Chief Executive Officer and Director of USA Technologies since January 1992. He is the founder, and was Chairman, Director, and Chief Executive Officer of American Film Techno
Slide 33: Committed and Engaged Board
Committed and Engaged Board Douglas M. Lurio, Director Mr. Lurio joined the Board of Directors in June 1999. He is President of Lurio & Associates, P.C., attorneys-atlaw, which he founded in 1991. He specializes in the practice of corporate and securities law. Previously he was a partner with Dilwor
Slide 34: Financial Snapshot (as of 9/30/2009)
Financial Snapshot (as of 9/30/2009) NASDAQ: USAT Industry: Business Services/Technology Operations based in: Malvern, PA Shares Outstanding: 22.7 million Fully-Diluted Shares Outstanding: 33.5 million 52-Week Range: $.90 - $4.20 per share Average Daily Trading Volume: 46,000 shares Insider Ownershi
Slide 35: Our Company is Exceptionally Well Positioned for a Bright Future
Our Company is Exceptionally Well Positioned for a Bright Future Vastly expanded market with limited competition World class products and services to address market needs Getting results for partners and customers Rising revenues, margins and reduced SG&A 71 patents issued to protect the Company’s I
Slide 36: USA Technologies Inc. contact details
USA Technologies Inc. (NASDAQ: USAT) 100 Deerfield Lane, Suite 140, Malvern, PA 19355 phone: 800.633.0340 • fax: 610.989.0344 www.usatech.com George R. Jensen, Jr. Chairman and CEO gjensen@usatech.com Stephen P. Herbert President and COOsherbert@usatech.com qqqq Important Additional Information USA