Usio, Inc. · NASDAQ:USIO
Usio — Investor Presentation (September 2020)
34 slides from Usio's investor presentation, Sep 10, 2020
Slide 1: Investor Presentation
© usIO’ Investor usio.com USIO NasdaqListed
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER INVESTOR PRESENTATION Tis communion sf inorsional purposes ony. The iemation corned hrin does ot purport ob ancl. Tho ta contained hatin is ined fom rns eter arene scieces No etesertain a mae a1 the easoaeness ofthe assumpens ade wh othe acura camlteeas of ay loraieneartane tom. Any
Slide 3: Legal Disclaimer: Non-GAAP Financial Measure
LEGAL DISCLAIMER NON-GAAP FINANCIAL MEASURE AND RELATED INFORMATION Tis presetan incoes rence to Aste EBITDA afancal measure tha not papared in acorance wth US. gnaray accepted acouingpecifes (GAAP) The Congany deloes EBITDA as opting income (oss) tele ite, tes, arecation an aazaton of mantles. The
Slide 4: Risk Factors Summary
RISK FACTORS SUMMARY “The fowing tacts, arog eters, cold cause actual esto er marty bom tho ‘tno, od tetas th Corny) ‘Ve cu epee averse fraps fects dont sin on te gba aconomcemonnart Lass hay esers coud ede ou enue goth + We maynot az th opounties fom ou cqustn of Singr Payments LC {We riven er lten
Slide 5: Company Overview & ACH
© usIO’ Company Overview & ACH Louis Hoch President & CEO
Slide 6: Investment Highlights
®usio INVESTMENT HIGHLIGHTS + Payment Faciltation ("Pay Fac’) & Third-Party Processing + NACHA Certified Third-Party Sender + End-to-end Prepaid Card Processingilssuing, Credit & Debit Card Processing Platform + "PayFac-in-a-Box’ platform offers rue single channel commerce experiencethrough API Serv
Slide 7: Annual Revenue
®usio ANNUAL REVENUE $6 so $2020 % 2400 $a 3-Year CAGR $15 suo $438 _, _ SAS 2017-2019 $10 ssae $6 + 2016109 ie revenve s decreased due toa cient, 2013 242015 ze 2017 2018 2019 (5 Revenue seing a poron a ther ‘merchant processing
Slide 8: Transactions Processed Per Year
®usio TRANSACTIONS PROCESSED PER YEAR 6 it 4 3 2 “ ¥ oS . 0 2s i 5 4a 2 0 2013204 = 2015002018019 7 Transactions
Slide 9: Dollars Processed Per Year
®usio DOLLARS PROCESSED PER YEAR $3540 400 $3500 00 291 S280 $3000 78 Millions 201320142015 2018S atts 2019 £7 Dotiars
Slide 10: Our ACH Model
®usio OUR ACH MODEL ‘TARGET CUSTOMER PROFILE TARGET VERTICAL CHARACTERISTICS ‘TARGET VERTICALS. a 7 &w
Slide 11: Key ACH Differentiators & How We Make Money
KEY ACH DIFFERENTIATORS & HOW WE MAKE MONEY KEY DIFFERENTIATORS. ®usio HOW WE MAKE MONEY NACHA * Greater funding control + Multiple S.70| S.41 |60%+
Slide 12: Prepaid Card
© usIO’ Prepaid Card Houston Frost SVP, Corporate Development & Prepaid Card Services
Slide 13: Our Prepaid Model
®usio OUR PREPAID MODEL ‘TARGET CUSTOMER PROFILE TARGET VERTICAL CHARACTERISTICS ‘TARGET VERTICALS HOW WE MAKE MONEY = mil
Slide 14: Card Issuance & Money Disbursement
®usio CARD ISSUANCE & MONEY DISBURSEMENT Services: DebitMastercard Issuance (Physical) Virtual Mastercard Issuance Other Disbursement Services: « @ ACH Processing (Direct Deposit) Push to Debit Card Payments Paper Checks Use Cases: e Emergency Relief Assistance attoe : 6 Corporate Expenses ~ S Contr
Slide 15: Physical Cards
®usio PHYSICAL CARDS + Debit Mastercard with web and mobile access, plus SMS transaction alerts + Ship to any address in the U.S. or order in bulk + Can be anonymous / unregistered a
Slide 16: Virtual Card Solution
®usio VIRTUAL CARD SOLUTION + Send funds to any email or smart phone in the U.S. + Provision virtual card to Apple, Google or Samsung Wallets + Use virtual card number for online or phone purchases + Convert virtual card to a physical card
Slide 17: Options & Features
®usio OPTIONS & FEATURES Creating and Loading Cards Batch fle via SFTP Webservices API Contact chent representative Card Program Customizations ‘Branded card and card package ‘Anonymous oF KYC-required cards? [ATM access (onabiodicisabed) Merchant Category Code (MCC) restrictions ‘Branded web and mo
Slide 18: Why Prepaid Wins
®usio WHY PREPAID WINS We offer turn-key and custom card issuance solutions that cover a wide-range of applications and use cases. + Ready-to-issue card programs enables us launch programs quickly and efficiently + While market incumbents tend to focus on large ‘opportunities with a single solution,
Slide 19: Payment Facilitation
© usIO’ Payment Greg Carter SVP, Payment Facilitation
Slide 20: What Is Payment Facilitation?
®usio WHAT IS PAYMENT FACILITATION? Payment Facilitation (PayFac) is simply the latest innovation in merchant acquiring, providing: * frictionless merchant onboarding, enrollment and automated risk/underwriting procedures - which have traditionally been very manual processes - to provide for mass ad
Slide 21: Target Audience
®usio’ TARGET AUDIENCE Leveraging its multi-functional, proprietary payment enablement platform and broad capabilities spanning the issuing and acquiring environments, USIO serves the Integrated Software Vendor ("ISV") marketplace as well as Enterprise Level Merchant Businesses.
Slide 22: Rationale for Software Enabled Payments
®usio’ RATIONALE FOR SOFTWARE ENABLED PAYMENTS 20k SaaS platforms in the US, ~11kare ISVs with ~$1.6trin potentially addressable payments volume; sddressable as potential PayFacs * USIO's primary target is an ISV or technology provider with $3 to $30 million in annual recurring revenue. Advantages o
Slide 23: Advantages of Payment Facilitation for ISVs
ADVANTAGES OF PAYMENT FACILITATION FOR ISV's + Create arecuring revenue stream (combination of software + payments is powerful) Revenue generation. Must be weighed vs. evenve share opportunities via a tradtonal negated payments relabonship Fast onboarding of + Sub-merchants avoid lengthy application
Slide 24: Payment Facilitation Value Proposition
PAYMENT FACILITATION VALUE PROPOSITION Parr pas e927 men HF.) segitgerae ten er tara nen rare! ®usio’ USIO eliminates the time and financial hurdles of becoming a Payment Facilitator. How? NOTREQUIRED - erage USIO infrastructure and expertise. NOTREQUIRED - All includedin USIO PayFac-in-a-Box. NOTRE
Slide 25: PayFac Execution: Quarterly Volume Processed
®usio PAYFAC EXECUTION QUARTERLY Volume Processed 2209 3209 942089
Slide 26: PayFac Execution: Quarterly Transactions Processed
®usio PAYFAC EXECUTION QUARTERLY Transactions Processed 22019 3209 Qa209 912020 22020
Slide 27: Financials
© usIO’ Financials Tom Jewell SVP, Chief Financial Officer
Slide 28: Income Statement
®usio INCOME STATEMENT sot2019 a 26a, == == ee = $5.6 a See non GAAP reconlaton of Adjusted EBITOA on sie 30,
Slide 29: Revenues by Category
®usio" REVENUES BY CATEGORY June 30, 2020 June 30,2019 $Change __-% Change ‘ACH and Complementary Service Revenue $ 4,016,991 $ 4,716,211 $ (699,220) 714.83% Credit Card Revenue $ 9,570,857 $ 8,327,869 $ 1,242,988 14.93% Card Services Revenue $1,144,384 _$ 701,331_$ 443,053 63.17% Total Revenue $14,
Slide 30: Non-GAAP Reconciliation
© usio’ NON-GAAP RECONCILIATION Twelve Months Ended Six Months Ended 31-Dec19 —-31-Dec-18 30-Jun-20. 30-Jun-20 Non-GAAP Reconciliation (Values in Mi Revenues $ 28.2 $ 25.0 $ 147 $ 13.7 Reconciliation from Operating Income (Loss) to Adjusted EBITDA: Operating Income (Loss) $ (5) $ (3.8) $ (2.2) $ (24
Slide 31: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS = fal @ $ Account 6/30/20 (ote cash $18 Restricted Cash & Settlement Funds $54.7 Total Assets S$ 658 Total Liabilities S$ 598 Total Equity $60 Total Liabilities & Stockholder Equity $ 65.8 Additional information Net Loss Carryforward $482 12/31/19 $2 $494 S$ 616 S$ 540 $76 $
Slide 32: Capitalization Table
CAPITALIZATION TABLE ‘Common Shares Outstanding RSU Warrants Outstanding Options Outstanding Total Fully Diluted Shares Outstanding Total 19,959,603 423,666 90,000 20,473,269 ®usio Insiders 7.677.185 216,688 7,993,851
Slide 33: Leadership
LEADERSHIP Mr. Hoch, CPP has 30 years of management experience, 200f which at 2 senior executive level of public companies. Mr. Hoch is an expertin payment processing and service bureau operations. As the President, CEO and Vice-Chairman of USIO, Mr. Hoch is responsible forall operations and strateg
Slide 34: Investment Highlights
®usio INVESTMENT HIGHLIGHTS + Payment Faciltation ("Pay Fac’) & Third-Party Processing + NACHA Certified Third-Party Sender + End-to-end Prepaid Card Processingilssuing, Credit & Debit Card Processing Platform + "PayFac-in-a-Box’ platform offers rue single channel commerce experiencethrough API Serv