Eml Payments Ltd. · ASX:EML
Eml Payments — Merger or Acquisition (May 2016)
21 slides from Eml Payments's merger presentation, May 2, 2016
Slide 1: Proposed Acquisition of Store Financial Services LLC
For personal use only Proposed Acquisition of Store Financial Services LLC April 2016
Slide 2: Important Notice
Important Notice For personal use only This investor presentation (Presentation) has been prepared by Emerchants Each recipient of this Presentation should make its own enquiries and Limited ABN 93 104 757 904 (EML) in relation to EML’s proposed acquisition of investigations regarding all informatio
Slide 3: Contents
Contents For personal use only 01 Executive Summary 02 Overview of SFS 03 Acquisition Terms and Funding 04 EML Post-Acquisition 05 Risks 3
Slide 4: Executive Summary: Acquisition and Overview of SFS
Executive Summary For personal use only Acquisition Overview of SFS EML has agreed to acquire 100% of Store Financial Services A leading provider of prepaid stored value processing and programs LLC (“SFS”) in North America in the USA and Canada Acquisition price of US$35m / AU$46.7m (1) Oper
Slide 5: Executive Summary: Strategic Rationale
Executive Summary For personal use only Strategic Rationale Established, profitable business: track record of Accelerates market entry pathway for EML: success, long-term customer relationships, low concentration risk Significant opportunity for EML to expand reloadable offering into amongst cus
Slide 6: Executive Summary: Funding and Financial Impact
Executive Summary For personal use only Funding Financial Impact Purchase price of US$35m / AU$46.7m split between cash of The proposed transaction is expected to be immediately EPS accretive to $35.0m funded via the Placement and the issuance of $11.7m in EML shareholders (2) newly issued equit
Slide 7: Equity raising – Placement
Equity raising – Placement For personal use only Structure Timing Placement to institutional and sophisticated investors • Books close on 29 April 2016 at 11:00am (Sydney time) Placement Size Ranking $58.5 million (40.35m shares) • The new shares will be fully paid and rank equally with EML’ exi
Slide 8: Placement and Acquisition timetable
Placement and Acquisition timetable* For personal use only Trading halt Pre-open, Thursday, 28 April 2016 Books Close 11am (Sydney time), Friday, 29 April 2016 Trading Recommences Monday, 2 May 2016 Conditions precedent satisfied/waived Friday, 27 May 2016 Settlement (subject to EML conditions prece
Slide 9: USA Prepaid Market Size – USD$715bn in Loads in 2018
USA Prepaid Market Size – USD$715bn in Loads in 2018 For personal use only 8
Slide 10: Introduction to SFS
Introduction to SFS For personal use only Key Metrics 300+ 5.5m 46m $2BN Gift card programs in Gift cards issued 46,000,000 gift cards Processing in excess of the market in the USA in 2015 worth issued since inception, US$2bn per annum in and Canada US$260m in loads representing over US$2 digital /
Slide 11: Introduction to SFS – Leadership Team
Introduction to SFS – Leadership Team For personal use only Mr. Eric Mettemeyer – Chief Executive Officer Eric is the CEO of Store Financial, bringing thirteen years of experience in the payments industry. His initial experience in the industry was the management of more than ten acquisitions of pre
Slide 12: Transaction Details – Management Options
Transaction Details – Management Options For personal use only Retention Option Grant of 6.2m Performance based share options 2.83m EML shares: granted to SFS Leadership: • Key recipients include Eric Mettemeyer (CEO), Matt Waldie • Performance options likely to translate into approximately (Preside
Slide 13: Key SFS Shopping Mall Prepaid Customers
Key SFS Shopping Mall Prepaid Customers For personal use only 13
Slide 14: Other Key Programs
Other Key Programs For personal use only Includes consumer incentive and rewards, digital / virtual gift cards and insurance claim payments 14
Slide 15: Extensive Mobile and Digital Payments Capabilities
Extensive Mobile and Digital Payments Capabilities For personal use only 15
Slide 16: Recent Key Deal Signed
Recent Key Deal Signed For personal use only Partnering with HYLA Mobile and Facebook to provide virtual cards for mobile phone trade-ins 16
Slide 17: SFUS Key metrics
SFUS Key metrics For personal use only $ Loaded 1H15 v 1H16 Gross Profit 1H15 v 1H16 $700.00m $25.00m $600.00m $20.00m $500.00m $242.87m $400.00m $15.00m $11.53m $300.00m $115.29m $10.00m $200.00m $37.23m $5.29m $5.00m $100.00m $204.98m $0.92m $100.57m $0.00m $0.00m 1H15 1H16 1H15 1H16 Australia - R
Slide 18: SFS Key metrics
SFS Key metrics For personal use only $115 1.49 $5m $7m m $243 m $12m $20m $63m $2m 0.60 4.53 $2m $2m $205 m AU$ (m) Card Loads 6 Number of Active AU$ (m) Gross Profit 6 AU$ (m) Revenue 6 months to Dec 2015 Cards (m) at 31 months to Dec 2015 months to Dec 2015 Dec 2015 SFUS EPSL: Non-Reloadable EPSL
Slide 19: Specific Risks
Specific Risks Specific Risks For personal use only There are a number of risks, both specific to EML and of a • Completion Risk: Completion of the acquisition is conditional on general nature, which may affect the future operating and certain matters. If any of the conditions are not met, completio
Slide 20: General Risks
General Risks For personal use only • Changes in accounting policy: SFS will convert to the but it is possible that interest rates decline to zero which would EML accounting policies. It is possible that future accounting also impact future earnings. advice changes items such as the treatment of bre
Slide 21: Contact
contact For personal use only Tom Cregan Managing Director +61 488 041 910 tcregan@emerchants.com.au Bruce Stewart Chief Financial Officer +44 (0)7713 711 823 +61 (0)488 041 910 bstewart@emerchants.com.au