K33 Ab · OMXSTO:K33
K33 Ab — Arcane Crypto — Investor Presentation (February 2021)
26 slides from K33 Ab's investor presentation, Feb 26, 2021
Slide 1: Arcane Crypto Company presentation
Arcane Crypto Company presentation February 26. 2021
Slide 2: Disclaimer
Disclaimer This presentation is not for public release or for release, publication or distribution (in whole or in part) in or into the United Presentation or disclose any changes or revisions to the information contained in the Presentation. States, Canada, Hong Kong, New Zealand, Switzerland, Sout
Slide 3: Today's presenters
Today’s presenters Torbjørn Bull Jenssen Eva Lawrence CEO COO • Norway's best-known bitcoin and blockchain expert • 8 years at Morgan Stanley, where she was Head of EMEA • Senior economist at Menon Economics (4 yrs) Flow Trading for Securities Lending after working in FX • MSc Economics and Economet
Slide 4: Vision and Mission
Vision Become the leading full service digital finance platform in Europe Mission Leverage digital currencies to revolutionize payments 4 24/02/2021
Slide 5: Arcane Crypto – Significant events after year end 2020
Arcane Crypto – Significant events after year end 2020 • 11th of January: The EGM in then Vertical Ventures AB (publ) approved the reverse acquisition with Arcane Crypto AS • 5th of February: The company started trading under new name and ticker: Arcane Crypto AB and “ARCANE” • 9th of February: The
Slide 6: Table of contents
Table of contents Chapter 1 Introduction to Arcane Chapter 2 Our sector Chapter 3 Breakdown of Arcane’s portfolio and key figures 2020 Chapter 4 Summary 6 24/02/2021
Slide 7: Introduction to Arcane
Introduction to Arcane
Slide 8: Arcane Crypto – Summary
Arcane Crypto – Summary • Institutional demand is growing fast. As an example, both volume and open interest for bitcoin contracts on CME increased more than 10x in 2020 High growth market • In addition, there seems to be an emerging trend where companies add BTC exposure to their balance sheet • Ar
Slide 9: Creating a crypto powerhouse
Creating a crypto powerhouse In three years, Arcane has grown to a Nasdaq Global digital listed group of 8 companies* through extensive finance platform M&A and organic development * M&A important part of buy and build strategy going-forward 2018 2019 2020 2021 2022 9 24/02/2021 Note: Arcane owns a
Slide 10: Payments as core business
Payments as core business With a portfolio with strong synergies, spanning the value chain for digital finance Payment software for instant crypto to fiat payments Payments (100% owned subsidiary) supported by Retail exchange (34%) Crypto broker (100%) with a complementary digital finance Asset mana
Slide 11: Our sector
Our sector
Slide 12: A maturing and fast-growing market – I
A maturing and fast-growing market – I 1. Large institutions 2. Already a billion- coming in dollar market 3. The technology is 4. Cryptocurrencies are improving fast becoming regulated 12 24/02/2021
Slide 13: A maturing and fast-growing market – II
A maturing and fast-growing market – II Real BTC Daily Spot Volume (7-day average, USDbn)** CME Bitcoin Futures* 16 8 000 3 500 14 7 000 3 000 12 6 000 2 500 Open Interest (USDm) 10 Volume (USDm) 5 000 2 000 USDBn 4 000 8 1 500 3 000 6 1 000 2 000 4 1 000 500 2 0 0 0 Jan-20 Feb-20 Dec-20 May-20 Jul-
Slide 14: Huge market opportunity in global payments
Huge market opportunity in global payments Arcane is targeting sectors especially open for new digital solutions Global Payments Revenue Global and digital services need 2.7 global payment rails 2.5 2 1.9 1.8 USD trillion 1.6 Global aviation Global remittances 1.5 1.3 1.4 USD +800bn USD +500bn 1 1 0
Slide 15: Disrupting payments, a trillion dollar opportunity
Disrupting payments, a trillion dollar opportunity Bitcoin is ideal as a cross- border payment rail: A global layer of interoperability: 15 24/02/2021
Slide 16: Breakdown of Arcane's portfolio
Breakdown of Arcane’s portfolio
Slide 17: Combining the best of both worlds
Combining the best of both worlds Improving payments by bridging the gap between crypto and fiat Cryptocurrency transactions : Traditional payments transactions: ✓ Fast ☓ Slow ✓ Cheap ☓ Costly ✓ Final ☓ With chargeback risk ☓ Unregulated Fast and cheap Trusted and ✓ Regulated ☓ Volatile regulated ✓
Slide 18: Arcane digital finance platform
Arcane digital Asset Management A cryptocurrency hedge fund for professional finance platform investors B2C B2B Payments Trading Platforms Regulated crypto exchange in Sweden, a Offering our Teslacoil payment as a * Norwegian regulated broker and derivatives software-as-a-service worldwide trading p
Slide 19: Volume driven and scalable business models
Volume driven and scalable business models The main source of revenue: • Percentage fees on payment volume • Spread and/or fees on trading volume * Percentage fee on payment Management fee (% of AUM) Brokerage fee as percent of Spread on trading volume volume and success fee trading volume Monthly s
Slide 20: Key figures for Arcane Crypto AS (preliminary and unaudited)
Key figures for Arcane Crypto AS (preliminary and unaudited ) Arcane Crypto AS Revenue (NOK ‘000) Key figure for Arcane Crypto AS group (excluding result from associated companies) 1 400 NOK '000 2020 Q4 2020 1 200 Revenue 2 149 1 259 EBITDA (adjusted for transaction costs)* -12 544 -4 989 1 000 Res
Slide 21: Paytech is a scalable business with potential for very fast growth
Paytech is a scalable business with potential for very fast growth Total operating revenue Total operating revenue 5 000 7 000 4 500 4 000 6 000 3 500 5 000 3 000 USDm SEKm 4 000 2 500 2 000 3 000 1 500 2 000 1 000 1 000 500 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2
Slide 22: Pipeline within payments
Pipeline within payments Underlying payment volume of potential customers in Teslacoil is integrated with Bambora’s current sales pipe-line* for Teslacoil Payment IQ-platform EUR ~9bn • Once converted to customers of Teslacoil, Teslacoil will initially process only a fraction of the total volume. *
Slide 23: 2025 potential
2025 potential 2025 potential Comment “Unlimited” target market comprised of global payments, Processed volume (daily) SEK 150m retail and institutional trading and execution platforms Asset under “Unlimited” target market” – global crypto asset SEK 10bn management management Blended revenue Average
Slide 24: Summary
Summary
Slide 25: Arcane digital finance platform
Arcane digital Asset Management A cryptocurrency hedge fund for professional finance platform investors B2C B2B Payments Trading Platforms Regulated crypto exchange in Sweden, a Offering our Teslacoil payment as a Norwegian regulated broker and derivatives software-as-a-service worldwide trading pla
Slide 26: Arcane Crypto – Summary
Arcane Crypto – Summary • Institutional demand is growing fast. As an example, both volume and open interest for bitcoin contracts on CME increased more than 10x in 2020 High growth market • In addition, there seems to be an emerging trend where companies add BTC exposure to their balance sheet • Ar
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