Moneyonmobile, Inc · OTC:MOMT
Moneyonmobile — Calpian — Investor Presentation (July 2016)
28 slides from Moneyonmobile's investor presentation, Jul 20, 2016
Slide 1: The Payment Network of India
The Payment Network of India TICKER- OTC: CLPI Wednesday, 20 June 2016 1
Slide 2: Required Statement About Forecasts
REQUIRED STATEMENT ABOUT FORECASTS Calpian’s models and projections are based on certain key assumptions, including but not limited to the following: Availability of adequate and appropriately priced financing to continue in business Availability of acquisitions which can be completed Continued perf
Slide 3: What is MoneyOnMobile? India's #1 Mobile Money System
Over 300,000 Points of Presence in Over 600 Cities WHAT IS MoneyOnMobile? India’s #1 Mobile Money System Wednesday, 20 June 2016 3 Utility Bill Payment eCommerce Television Recharge Mobile Recharge Mobile Bill Payment Domestic Money Remittance Travel Created an Estimated 6,000 Entrepreneurial Jobs P
Slide 4: Executive Summary
$- $20 $40 $60 $80 $100 Mill io n s EXECUTIVE SUMMARY Explosive Growth Monthly Volume Growth +210% over 12 Months Revenue Growth 43% YOY Strong Financial Performance Good Revenue Growth 47% Gross Margin and Growing Proven Management Team 60+ Years in the Payments Business Experienc
Slide 5: Market Need: Unbanked Consumers by Country
MARKET NEED Unbanked Consumers by Country Targeting The Largest Percentage Of Population Wednesday, 20 June 2016 5 Source: 1:Company Estimate 2 Word Banks’ Global Financial Inclusion Database India has the largest unbanked population in the world1 Only 182,000 ATMs2 Only 15% of adults report u
Slide 6: Our Services On Site: Mobile Top Up in Hyderabad
OUR SERVICES ON SITE Wednesday, 20 June 2016 6 Mobile Top Up In Hyderabad
Slide 7: Our Services On Site: Money Transfer in Calcutta
OUR SERVICES ON SITE Wednesday, 20 June 2016 7 Money Transfer in Calcutta – Rs 200,000 per day (+/- $3,000 USD)
Slide 8: Our Solution – Simple, Fast, Secure
OUR SOLUTION – SIMPLE, FAST, SECURE Turn Mobiles POS Terminals Enables Consumers To Pay Cash At Our 315,000+ Retail Stores To Perform Remote Financial Transactions Wednesday, 20 June 2016 8 N ew Gr o w th H ab it Fo rm in g C u rre n t Gr o w th D riv e rs Retail Stores Indian Consumers Sells our Se
Slide 9: Massive Market Opportunity
MASSIVE MARKET OPPORTUNITY Wednesday, 20 June 2016 9 India has the Potential to be an $8 Billion Market for Mobile Money 47 53 95 98 100 0 25 50 75 100 United States United Kingdom Russia China India Percentage Transactions in Cash Source: RBI, World Bank, Index Mundi , EU Sources: RBI, CGAP, Gates
Slide 10: Doing Well by Doing Good
DOING WELL BY DOING GOOD Wednesday, 20 June 2016 10 Financial Inclusion is at the Core of What We Do Created over 6,000 indirect jobs through our distributors and agents. Creating Jobs Source: Company estimate Exposure to More Advanced Financial Products Most of our domestic remittance consumers are
Slide 11: Company Management Team and Board; Business Model; Next Steps; Sales Channel
Company Management Team and Board Business Model Next Steps Sales Channel 11
Slide 12: Experienced Management Team
Jim McKelvey Director (USA) Co-founder of Square, one of the fastest growing technology companies in the US Harold Montgomery CEO (USA) Stanford University MBA, 1985 Started in payments in 1987 60+ Years of Payment Experience Shailesh Narang CFO (India) Qualified Chartered Accountant since Nov 1984
Slide 13: Jim McKelvey Joins Calpian Board
JIM MCKELVEY JOINS CALPIAN BOARD Successful Entrepreneur Occupation Education 2009 – till now Co-Founder & Director, Square 2012 – till now General Partner, Cultivation Capital 2013 – till now Founder, LaunchCode 2013 – till now Managing Director, SixThirty 1989 – till now Founder, Mira 2011 – till
Slide 14: Market India Overview; Market Overview; Competitive Landscape and Advantage
Market India Overview Market Overview Competitive Landscape and Advantage 14
Slide 15: Sales Channel: Scale Matters
1-200 201-1000 1001+ No Agents 315,000+ Agents and 5,150+ Distributors SALES CHANNEL: SCALE MATTERS Wednesday, 20 June 2016 15 Maharashtra West Bengal Assam Uttar Pradesh Bihar Rajasthan Haryana Andhra Pradesh Jharkhand Gujarat Punjab Tamil Nadu Madhya Pradesh Orissa Meghalaya Uttarkhand Chandigarh
Slide 16: Local Market Peer Comparison
Vendor Users (million) Monthly PV (million) Store Count Primary Focus Comments 170 $93.94 c. 315,000 Unbanked Unbanked Consumer Focus At Scale 120 $113.64 c. 80,000 Banked Banked Consumer Focused 30 $9.09 c. 100,000 Banked 20 $68.18 c. 150,000 Banked 14 $1.40 c. 25,000 Unbanked Subscale 8 $56.00 c.
Slide 17: Taking MoneyOnMobile to the Next Level
TAKING MoneyOnMobile TO THE NEXT LEVEL Category Initiative Target Outcome Corporate Governance Change Name to MoneyOnMobile Inc. Better investor understanding of business that is 100% focused on India. Ensuring Proper Board / Management Experience Added Jim McKelvey from Square recently. Next is to
Slide 18: Financial Overview; Valuation; Public Comparables; M&A Comparables
Financial Overview Valuation Public Comparables M&A Comparables 18
Slide 19: Contact Information
Contact Information Harold Montgomery HMontgomery@Calpian.com +12147588603 Wednesday, 20 June 2016 19
Slide 20: India Is a Key Global Growth Driver
INDIA IS A KEY GLOBAL GROWTH DRIVER Wednesday, 20 June 2016 20 7.6% GDP Growth and a Key Market for Several Global Digital Players Source: McKinsey; BIS, Friedrich Schneider papers Indian Visitors as a Percentage of Global Cards Per Consumer at the Point When the Country Crossed 20% Internet Penetra
Slide 21: Market Overview
0.08 0.12 0.18 0.25 0.33 0.42 0.50 0.92 1.62 2014A 2015A 2016F 2017F 2018F 2019F 2020F 2025F 2030F U S$ Bi llio n Online payment revenue $21 $81 $169 $300 2015A 2020F 2025F 2030F US$ B ill io n eCommerce 0.08 0.12 0.18 0.25 0.33 0.42 0.50 0.92 1.62 0.58 0.70 0.86 1.06 1.24 1.39 1.52 1.90 3.45 $0.66
Slide 22: Global Market Peer Comparison
GLOBAL MARKET PEER COMPARISON Country of Operations India Bangladesh Kenya Russia Users to Month c. 8 mln c. 17 mln c. 25 mln c. 67 mln Primary Focus Unbanked Unbanked Unbanked Unbanked & Banked People with Mobile(s) 76% 72% 80% 95% Banking Penetration 53%3 31% 23%1 >75% Services Revenue Model Merch
Slide 23: Global Financial Inclusion Investments
GLOBAL FINANCIAL INCLUSION INVESTMENTS Wednesday, 20 June 2016 23 Purpose: To support bKash in building a scalable mobile money platform that will allow poor Bangladeshis to store, transfer, and receive money safely via their mobile phones Amount: USD 21 mln Investment: bKash, Bangladesh, platform t
Slide 24: Lowest Cost Producer
LOWEST COST PRODUCER Wednesday, 20 June 2016 24 Banked Consumer Wallet Revenue Per Basket of Transactions Processed Value: INR 400.00 0.9% of Processed Value: INR 3.60 Profit per Agent Cash Load: Load Costs: ~51% of Revenue INR (2.04) Profit INR 1.56 Note MoneyOnMobile model has: ◦ No Fraud Costs ◦
Slide 25: MoneyOnMobile vs Mobile Operators
MoneyOnMobile vs MOBILE OPERATORS Q4 FY 2016 1 Live for 20 months Q3 FY 2012 Live for 20 Months Q4 FY 2016 Current Wallets/Users (million) 2 4.6 7.87 Transaction Value (million) $12 $33 $276 Transaction Count (million) 3.5 27.6 33.25 Average Tran Value $3.35 $1.18 $8.30 Wednesday, 20 June 2016 25 MN
Slide 26: Business Model
Instructions BUSINESS MODEL Wednesday, 20 June 2016 26 Revenue Earned for Performing Financial Transactions Cash Instructions SMS Confirmation Commission SMS Message with Gift Card Number Consumer Agent Confirmation Commission Bank Transfer Service Provider Consumer asks the agent to t
Slide 27: Valuation Details (1/2)
VALUATION DETAILS (1/2) Trading comparables analysis for mobile payments 38 131 198 229 105 28 71 150 99 28 173 228 Company Country Market cap (USD mn) Net Debt (USD mn) EV (USD mn) EV as a multiple of P/E '15A P/E '16F P/E '17F EV/TPV Sales '15A Sales '16F Sales '17F EBITDA '15A EBITDA '16F EBITDA
Slide 28: Valuation Details (2/2)
VALUATION DETAILS (2/2) Precedent transactions analysis Average 9.6x 17.1x Median 3.3x 16.4x Source: Mergermarket, public information Date Bidder Target Stake Deal Value (US$ mn) EV (US$ mn) EV/Sales EV/EBITDA 03/05/2016 GMO and Mediatek Mobikwik n.a. 50 400 0.9x n.a. 14/03/2016 DBTRANS Servicos e T