Cantaloupe, Inc. · NASDAQ:CTLP
Cantaloupe — USA Technologies — Shareholder Meeting (June 2011)
52 slides from Cantaloupe's shareholder meeting presentation, Jun 13, 2011
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting June 13, 2011 Creating Value Through Innovation
Slide 2: Agenda
AGENDA Official Business Chairman’s Speech - George Jensen, Chairman and CEO Company Presentation - Stephen P. Herbert, President and COO Preliminary Voting Results - David M. DeMedio, CFO Q & A Adjourn
Slide 3: Company Presentation
Company Presentation Stephen P. Herbert, President and Chief Operating Officer
Slide 4: 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 limited to the ability of the
Slide 5: Presentation outline
• Market Opportunity/Value Proposition • Trends • Products and Services • Customer Results • Company Results
Slide 6: Market Opportunity/Value Proposition
Market Opportunity/Value Proposition
Slide 7: Market Opportunity/Value Proposition
. Market Opportunity/Value Proposition USA Technologies is the leading provider of wireless cashless payment and M2M solutions for self-serve retailing industries. “ ”
Slide 8: Market Opportunity/Value Proposition
esasaics Market Opportunity/Value Proposition Currently focused on small ticket, self-serve retail market opportunities. Vending Kiosks $844B* $43B Commercial Laundry $11B Amusement & Gaming $5B Office Coffee $4B ‘Automated Car Wash $6B Tolls $8B Parking $17B Sources: US Department of Transportation
Slide 9: Market Opportunity/Value Proposition
Provide leading edge wireless cashless payment services for small ticket unattended retail. Connect remote, self-service retail locations so owners and operators can better manage their business. Market Opportunity/Value Proposition $
Slide 10: 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 Processing Services Wireless Connectivity Online Sales Reporting Over the Air Updates & Remote Data Management Data Security Health Alerts Consumer Services
Slide 11: Trends
Trends
Slide 12: Payment Industry Trends
Trends Payment Industry Trends The Nilson Report projects that debit cards will surpass cash as consumer’ s preferred method of payment in 2011. cash 2003 «2004 = 2005. 2006 «= 2007, «2008 )3= 2009 2010 2011S 2012-2013 — checks — credit — therest — cash — debit ©2009 The Nilson Report 42
Slide 13: Consumer Trends
Trends Consumer Trends Customers are now mandating cashless payment systems because credit and debit card acceptance are now the “NORM” for everyday small-ticket purchases. $5.00 $3.50 $.99
Slide 14: Consumer Trends: Generation Plastic
Generation Plastic (or Generation “P”) represents a paradigm shift in how we buy-now and in the future. Source: Harris Interactive Trends Consumer Trends
Slide 15: Trends
Trends These trends are being driven by both the consumer and the credit card associations, issuing banks and others that service them.
Slide 16: NFC-based mobile payment
Trends NFC-based mobile payment is poised to further push cashless.
Slide 17: NFC-based mobile payment
Trends NFC-based mobile payment is poised to further push cashless.
Slide 18: Well positioned for mobile payment
Trends USA Technologies is well positioned to capitalize on the mobile payment movement with 50,000+ NFC capable devices on the ePort Connect Service.
Slide 19: Drivers of market adoption
Trends Consumer Demand • Focus on convenience • Desire for electronic micro- payments • Increasing dependence on cashless for everday purchases USAT believes that the confluence of several compelling drivers will help to drive significant market adoption. Market Sponsorship • VISA, MC, Discover and
Slide 20: Products and Services
Products and Services
Slide 21: ePort Connect Service
Card Processing Services Wireless Connectivity Online Sales Reporting Over the Air Updates & Remote Data Management Data Security Health Alerts Consumer Services Settlement Products and Services ePort Connect Service A PCI compliant, end-to-end, suite of cashless payment and telemetry services tailo
Slide 22: PCI Level One Service Provider
Products and Services Attained Certification for Card Industry’s highest level of security - PCI Level One Service Provider. ePort Connect Service
Slide 23: Cashless Transactions
Products and Services Cashless Transactions ePort accepts all forms of cashless. Mag Stripe Cards Contactless Cards & Fobs Mobile Commerce
Slide 24: ePort for Self-Service, Unattended Retail
Products and Services ePort® for Self-Service, Unattended Retail • G8 enables cashless payments including credit/debit and NFC (mobile) G8 EDGE • ePort EDGE is designed for rapid retrofit - 10 minutes or less
Slide 25: ePort Connect Service pricing
Products and Services • Includes ePort Connect Service and device • ePort EDGE or G8 • Pay one low monthly service fee
Slide 26: Deployment Planning Service
Sales Execution Deployment Planning Knowledge Base Technical Training ePort Connect Setup Customer Service Superior Customer Results Products and Services Sales Execution Step 1 Deployment Planning Knowledge Base Step 2 Technical Training Step 3 ePort Connect Setup Step 4 Customer Service Step 5 Dep
Slide 27: Deployment Planning Service
Products and Services Deployment Planning Service • Evaluate current performance using cashless metrics • Comparison against USAT Knowledge Base customers • Evaluate individual machines for performance issues (health reports)
Slide 28: Commercial laundry services
• Online availability of washers and dryers • Cashless payments • “Cycle Done” notification - Email - Cell Phone - Pager Products and Services
Slide 29: ePort SDK
• The SDK enables kiosks, toll booths, gaming units, and other devices to accept cashless payment • End-to-end encryption • Compatible with Windows or Linux platforms • PCI DSS compliant • Alternative to traditional Point-Of-Sale (POS) devices Products and Services ePort SDK
Slide 30: EnergyMiser
Products and Services • Up to 40% reduction in energy consumption • Average sales price of $160 • Product relaunched in 2011 - new, more efficient device - new, more user friendly stand-alone website www.energymisers.net - rebranding
Slide 31: Customer Results
Customer Results
Slide 32: Customer Results
Customer Results Source: USAT Knowledge Base. Quarterly results taken from varying sample sizes.
Slide 33: Customer Results
Customer Results Consumers’ vending purchases are on average 29% greater when they use their credit or debit card. Source: USAT Knowledge Base. Sample size of 24,375 ePorts, 4,230,208 transactions from a cross-section of locations types for March 2011.
Slide 34: Customer Results
Customer Results Source: USAT Knowledge Base. Sample size of 24,375 ePorts, 4,230,208 transactions from a cross-section of locations types for March 2011.
Slide 35: Company Results
Company Results • JumpStart • Key Partnerships • Accomplishments
Slide 36: Company Results
Company Results • Accelerated Adoption - Increase in new customers of 81% during calendar year - Increase in connections of 73% during calendar year 2010 - Significant increase in recurring revenue, from licensing and transaction fees: 81% during calendar year 2010 • Competitive advantage
Slide 37: Verizon partnership
Company Results Partnered with Verizon to deliver industry leading wireless, cashless payment services and M2M solutions for self serve, unattended retail.
Slide 38: Strategic Partnership with VISA
Company Results Strategic Partnership with VISA - Three year marketing partnership with VISA to support USAT’s to drive credit/debit adoption in the small-ticket, unattended retail space.
Slide 39: Crane Merchandising Systems agreement
Company Results Crane Merchandising Systems, Inc. and USA Technologies, Inc. announced a three-year agreement to deliver a combined cashless vending solution to Crane customers in North America.
Slide 40: EnergyMiser reseller agreements
Company Results Secured reseller/distributor agreement with Affliliated Distributors and Rexel Holdings for the EnergyMiser products.
Slide 41: Nilson Report ranking
Company Results ©August 2010 The Nilson Report Nilson Report named USAT as #6 in U.S. for Point of Sale Terminal shipments.
Slide 42: Deloitte Fast 500 recognition
Company Results USA Technologies Named to Deloitte's Fast 500 List of Fastest Growing Companies in North America in October of 2010.
Slide 43: 112,000 devices connected
Company Results 112,000 devices connected to the USALive Network. • A 53% increase from last year. • Driving an 81% increase in license and transaction revenue from last year.
Slide 44: Devices on service
devices on service 90,000 60,000 30,000 0 Company Results Connections to the ePort Connect Service continue to increase. USA est. 112,000 @ total connected devices 82,000 73,000 63,000 57,000 52,000 48,000 42,000 43,000 38,000 . \ . ' 3/31/08 6/30/08 9/30/08 12/31/08 3/31/09 6/30/09 9/30/09 12/31/09
Slide 45: 1,700 customers on ePort Connect Service
Company Results 1,700 customers on the ePort Connect Service • An 89% increase from last year.
Slide 46: Number of customers
number of customers. 2,000 1,500 1,000 500 6/30/09 aattll Company Results Growth in the number of customers on the ePort Connect Service continues to accelerate. @ total customers 123109 3/31/10 6/30/10 93010 = «143110 3/81/11 1,050 6/30/11 estimates based upon results for April, May, and estimated
Slide 47: Transaction Volume by Quarter
Company Results USAT Processed 19.3 million transactions with a value t. of $31.4 million for its customers in the 3/31/11 quarter. ° 28,000,000 ¢ $31.4 24,000,000 est. $26. 20,000,000 $24.5M. 19,300,000 $20.8 16,000,000 $172 $14.6m SSM 12,000,000 $13.5M 15,900,000 14,000,000 11,000,000 $11.6M $11.3
Slide 48: Increased Gross Profit
Company Results Increased Gross Profit Gross Profit continues to grow. $2,500,000.00 est. $2,000,000.00 ¢ $1,500,000.00 $1,000,000.00 $500,000.00 $0 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 6/30/11 © Gross Profit 6/30/11 estimates based upon results for April, May, and estimated results for
Slide 49: Total Revenue Growth
Company Results Total Revenue Growth Total revenue continues to grow. est. $7,000,000 ,? e oa $6,000,000 ¢ on est. $5,000,000 a 2 -* $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 12/31/09 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 6/30/11 © License & Service Revenue © Total Revenue 6/30/11 estimates
Slide 50: Increased USAT Shareholder Value
Company Results Increased USAT Shareholder Value JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 500% 400% 300% 200% 100% 0% USAT NASDAQ Composite S&P 500
Slide 51: Our Company is Well Positioned for Continued Success
Our Company is Well Positioned for Continued Success • Expanded market opportunity • Market leading products and services • Focused on generating value for shareholders, customers and partners • Rising connections, processing volume, revenues, margins and reduced SG&A • 79 patents issued • Diversifi
Slide 52: Annual Shareholders' Meeting
Annual Shareholders’ Meeting June 13, 2011 Creating Value Through Innovation