Slide 1: The Right Team with The Right Plan
The Right Team with The Right Plan The Proof is in our Performance May 2016
Slide 2: Disclosures: Forward-Looking Statements
Disclosures Forward-Looking Statements This presentation contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements that address expectations or projections about the future, including about the Company
Slide 3: Discussion Agenda
Discussion Agenda Green Dot Overview Historical Perspective Six-Step Plan to Create Long-Term Value Highly-Qualified & Independent Board Harvest’s High-Risk Plan Harvest’s Misrepresentations Performance vs. Peers
Slide 4: Green Dot Overview
[ Green Dot Overview ] 4 Os AIC Mo reverting aEQ bln forthe masses
Slide 5: Our mission
To provide a full range of affordable and accessible financial services to Our mission The Masses
Slide 6: Green Dot at a glance
GreenDot We INVENTED THE GENERAL PURPOSE RELOADABLE PREPAID CARD industry in 1999 and are the largest prepaid provider in the U.S. We are a BANK HOLDING COMPANY regulated by the Board of Governors of the Federal Reserve and the State of Utah DFI We are a TOP 20 DEBIT CARD ISSUER among all banks and
Slide 7: Our Long-Term Roadmap is Now Paying Off
Our Long-Term Roadmap is Now Paying Off Green Dot’s stock has appreciated ~39%* since management publicly disclosed its new growth initiatives on December 2, 2015, prior to the Harvest 13D filing Green Dot’s Six-Step Plan is on track and the Company’s stock price performance demonstrates that invest
Slide 8: Long-Term Discipline = Long-Term Success
Long-Term Discipline = Long-Term Success Unwavering commitment to innovation and consumerism The incumbent slate guided Green Dot’s evolution from a niche prepaid card provider with a highly-concentrated revenue stream into a diversified “FinTech” leader with multiple award-winning products and vast
Slide 9: Historical Perspective
[ Historical Perspective }
Slide 10: Historical Perspective: 2010 - 2011
2010 2011 2012 2013 2014 2015 2016E 2017E Revenue $377 $485 $555 $582 $610 $699 $708 NA Walmart % 63% 61% 64% 64% 54% 46% NA NA Adj. EBITDA $98 $123 $111 $103 $132 $152 $160 NA Non-GAAP Diluted EPS $1.27 $1.55 $1.38 $1.15 $1.33 $1.35 $1.42 $1.75 Historical Perspective: 2010 - 2011 Source: Financial
Slide 11: Historical Perspective: 2012 - 2013
2010 2011 2012 2013 2014 2015 2016E 2017E Revenue $377 $485 $555 $582 $610 $699 $708 NA Walmart % 63% 61% 64% 64% 54% 46% NA NA Adj. EBITDA $98 $123 $111 $103 $132 $152 $160 NA Non-GAAP Diluted EPS $1.27 $1.55 $1.38 $1.15 $1.33 $1.35 $1.42 $1.75 Historical Perspective: 2012 - 2013 In 2012 three dist
Slide 12: Historical Perspective: 2013 - 2014
2010 2011 2012 2013 2014 2015 2016E 2017E Revenue $377 $485 $555 $582 $610 $699 $708 NA Walmart % 63% 61% 64% 64% 54% 46% NA NA Adj. EBITDA $98 $123 $111 $103 $132 $152 $160 NA Non-GAAP Diluted EPS $1.27 $1.55 $1.38 $1.15 $1.33 $1.35 $1.42 $1.75 Historical Perspective: 2013 - 2014 The Detour: In 201
Slide 13: Historical Perspective: 2014 - 2015
2010 2011 2012 2013 2014 2015 2016E 2017E Revenue $377 $485 $555 $582 $610 $699 $708 NA Walmart % 63% 61% 64% 64% 54% 46% NA NA Adj. EBITDA $98 $123 $111 $103 $132 $152 $160 NA Non-GAAP Diluted EPS $1.27 $1.55 $1.38 $1.15 $1.33 $1.35 $1.42 $1.75 Historical Perspective: 2014 - 2015 Consolidate the ma
Slide 14: Diversified and Grew Revenue Despite Headwinds
DIVERSIFIED and GREW Revenue Despite Headwinds Management Successfully Navigated through an Unprecedented Business Environment Diversified and grew revenue despite extreme new competitive threats, industry price compression, and the MoneyCard/MoneyPak events that we estimate wiped out ~$130 million
Slide 15: Green Dot Has Outperformed its Prepaid Industry Peer Group
Green Dot Has Outperformed its Prepaid Industry Peer Group Source: Financial data compiled from FactSet *Peers include: MoneyGram, Western Union, Total System Services, WEX, American Express, Blackhawk, Euronet, H&R Block, Cardtronics, Meta Financial, and BofI. Green Dot Peer Group 1-Year Performanc
Slide 16: Six-Step Plan to Create Long-Term Value
Six-Step Plan to Create Long-Term Value
Slide 17: Six-Step Plan to Achieve $1.75+ Non-GAAP EPS in 2017
Six-Step Plan to Achieve $1.75+ Non-GAAP EPS in 2017 Disclosed initiatives in December 2015 Launch new, more appealing products with materially better unit economics at all 100,000 retailers Bring back MoneyPak with new risk controls Make modest investments in “high-potential” initiatives that align
Slide 18: Delivering on Six-Step Plan – Demonstrating Results Today
Delivering on Six-Step Plan – Demonstrating Results Today Stock price has increased ~39% since first disclosure of management and board plan in December 2015 Our plan is working Q1 2016 Beat consensus revenue Beat consensus Adjusted EBITDA Beat consensus Non-GAAP Diluted EPS FY 2016 guidance Increas
Slide 19: Investors Have Responded
Investors Have Responded On December 1, 2015 management discloses new initiatives at an investor conference On February 24, 2016 reports strong fourth quarter financial results; provides additional details around new initiatives and Six-Step Plan to drive $1.75+ in earnings in 2017 On May 4, 2016 re
Slide 20: Analyst commentary on Q1 results
“GDOT's 1Q revs and EPS solidly beat JEFe/Street due to outperformance in the core biz and a revenue pull-forward related to tax refund season. The company raised F16 revs/adj. EPS guidance by $5M and EPS by $0.04, which may prove conservative given the pending impact of recent product launches. In
Slide 21: Highly-Qualified & Independent Board
Highly-Qualified & Independent Board
Slide 22: A Highly Qualified & Independent Board
A Highly Qualified & Independent Board Green Dot’s Board is highly-qualified and independent, with significant relevant experience to oversee the successful execution of the Company’s strategy Steven W. Streit Chairman, President & CEO Pioneer in the financial services industry, credited with invent
Slide 23: A Highly Qualified & Independent Board
A Highly Qualified & Independent Board Green Dot’s Board is highly-qualified and independent, with significant relevant experience to oversee the successful execution of the Company’s strategy Timothy R. Greenleaf Independent Director Significant depth and breadth of knowledge counseling and serving
Slide 24: Your Board Has the Experience Needed to Drive Green Dot Forward
Your Board Has the Experience Needed to Drive Green Dot Forward Green Dot’s Board is highly qualified, diverse, and committed to enhance value for ALL shareholders Executive Leadership Experience Board Experience Fin. Services / Tech Experience Functional Expertise Regulatory Experience Entrepreneur
Slide 25: The Right Team to Keep the Momentum Going
The Right Team to Keep the Momentum Going These directors have been invaluable since Green Dot’s IPO Together, they are among the primary authors of the Company’s long-term plan that beat American Express, Chase and many others to emerge a diversified fin-tech banking leader These Board members are
Slide 26: Steven W. Streit
Steven W. Streit | Founder, Chairman CEO and 8%+ Shareholder Owns 4,215,410 shares* Invented the reloadable prepaid debit card and founded the Company in 1999 Primary relationship holder with the Company’s major business partners and key regulators including Walmart, Walgreen, CVS, CFPB, Federal Res
Slide 27: Timothy R. Greenleaf
Timothy R. Greenleaf | Audit Committee Chair, Independent Director Owns 262,097 shares* Serves as the Company’s Audit Committee Chair, which includes oversight of the Company’s Enterprise Risk Management Committee and Cybersecurity Provides unique, direct insight to navigate Green Dot’s complex and
Slide 28: Michael J. Moritz
Michael J. Moritz | Independent Director Personally owns 317,799 shares and Sequoia owns 2,227,969 shares* Acclaimed venture capital investor, large Green Dot shareholder and current Chairman of Sequoia Capital One of the most highly sought after individuals for corporate boards Actively contributes
Slide 29: Board refreshment process and new directors
In February 2016, announced a process to identify strong new candidates to expand Green Dot’s Board of Directors. Goal was to strengthen the board and address Harvest’s criticisms Sought input from top ten shareholders to identify and recruit for highly-qualified directors - Harvest declined to coll
Slide 30: Pro-Investor Governance Changes
Pro-Investor Governance Changes The Board values productive conversations with our investors Based on these constructive conversations, we have made or committed to a number of governance changes that we believe are in the best interests of the Company and our investors: The appointment of three hig
Slide 31: Why Won't Harvest Engage With Green Dot?
Why Won’t Harvest Engage With Green Dot? GREEN DOT’S ATTEMPTS TO SETTLE WITH HARVEST Before Harvest voiced its concerns publicly, Green Dot and its board held multiple meetings and discussions with Harvest and offered to provide Harvest executives with temporary insider status, including regular ong
Slide 32: Performance vs. Peers
[ Performance vs. Peers ]
Slide 33: 1-Year Stock Price Performance
1-Year Stock Price Performance (3/31/15 – 3/31/16) Source: Financial data compiled from FactSet *Peers include the following: MoneyGram, Western Union, Total System Services, WEX, American Express, Blackhawk, Euronet, H&R Block, Cardtronics, Meta Financial, and BofI **Harvest peers include full list
Slide 34: 3-Year Stock Price Performance
3-Year Stock Price Performance (3/31/13 – 3/31/16) Prepaid Industry Peer Group* Harvest Peer Group** Green Dot Peer Group Green Dot has materially out-performed our Prepaid Industry Peer Group. The Harvest Peer group does not accurately portray the companies that Green Dot considers its prepaid indu
Slide 35: 5-Year Stock Price Performance
5-Year Stock Price Performance (3/31/11 – 3/31/16) Green Dot Peer Group Prepaid Industry Peer Group* Harvest Peer Group** Green Dot has under-performed both peer groups based on 5-year returns. However, as noted, Green Dot’s 5-year returns include a period in 2011 when our business performed excepti
Slide 36: Stock Price Performance Since 7/27/12
Stock Price Performance Since 7/27/12 Post-Correction From Q2 2012 Earnings Call Green Dot Peer Group Prepaid Industry Peer Group* Harvest Peer Group** When you compare Green Dot’s performance from the time it proactively warned investors on the Q2 2012 earnings call of the increasing level of compe
Slide 37: Harvest's High-Risk Plan
[ Harvest’s High-Risk Plan |
Slide 38: Harvest's High Risk Plan: The Facts
Harvest’s High Risk Plan: The Facts Green Dot’s Board has the right value creation strategy, is focused on performance and is holding management accountable Reconstitute the Board Green Dot conducted an open process to add fresh perspectives to the Board; Harvest refused to participate Harvest refus
Slide 39: Get to know Harvest's Nominees
Get to know Harvest’s Nominees Nino Fanlo Owns 4,000 GDOT shares(1) Phil Livingston Owns 4,050 GDOT shares(2) George Gresham Owns no GDOT shares X X X
Slide 40: Nino Fanlo
Nino Fanlo Harvest describes him as an “accomplished financial services executive.”(3) Failed CEO of KKR Financial Holdings (previously NYSE:KFN). Under Fanlo’s leadership KFN share price declined 97%(4) In December 2008 Fanlo was replaced by KKR(5) Fanlo was sued in U.S. Federal Court and in Califo
Slide 41: Fanlo's Epic Track Record of Value Destruction at KKR Financial
“[KKR] has changed the leadership and focus of its underperforming and publicly traded debt business, KKR Financial. KKR replaced [CEO] Saturnino Fanlo……in order to convince investors that it is doing everything it can to turn around its business.”(14) Fanlo’s Epic Track Record of Value Destruction
Slide 42: Philip Livingston
Philip Livingston Harvest calls him an outstanding “roll up your sleeves” executive that they “meticulously recruited” Jeff Osher says Philip Livingston has been “meticulously recruited” to serve on Green Dot’s board and to even step-in to run the company.(15) Nevertheless, questions about his crede
Slide 43: Philip Livingston
Philip Livingston Harvest calls him an outstanding “roll up your sleeves” executive that they “meticulously recruited” Appointed CEO of Ambassadors Group (NASDAQ: EPAX) as part of a dissident takeover. He then told investors: “The company will in the long term deliver profitability.”(19) Sixteen mon
Slide 44: Livingston's Track Record - Value Destruction at Ambassadors Group
Livingston’s Track Record - Value Destruction at Ambassadors Group Livingston states the Company will in the long-term deliver profitability, a stronger balance sheet and shareholder value(22) Ambassadors’ shareholders voted to approve the dissolution of the company on October 13, 2015(24) On Octobe
Slide 45: Questionable Judgment
Questionable Judgment Mr. Livingston has posted on social media expressing seemingly controversial views inappropriate of a public board member of any company, let alone a company as highly regulated and politically sensitive as Green Dot Recent tweets address topics including: African Americans and
Slide 46: Mr. Livingston Shares Concerning Views on Social Media
Mr. Livingston Shares Concerning Views on Social Media Investors need to know the truth about Harvest’s candidates
Slide 47: Livingston's Reckless Use of Social Media
Livingston’s Reckless Use of Social Media Would you want a person with this kind of judgment serving on the board of Green Dot? 47
Slide 48: George Gresham
George Gresham Owns no GDOT stock Former CFO of NetSpend Holdings Inc. Interviewed for Green Dot CFO position in 2015 Declined to continue to pursue the CFO interview process, further indicating he was not willing to re-locate to California Never served on a public board of directors An architect of
Slide 49: Can You Trust Jeff Osher and Harvest?
Can You Trust Jeff Osher and Harvest? While its clear that Harvest is deeply unhappy with Green Dot’s Board and CEO, it is not clear that Harvest has any viable plan Of the plans that Harvest does propose, they appear to be a copy of those plans announced and put into action by the Company prior to
Slide 50: Can You Trust Jeff Osher and Harvest?
Can You Trust Jeff Osher and Harvest? They’ve been praising Green Dot and Mr. Streit privately prior to filing their 13D: “We are highly confident you are acting in a manner that is in the best interest of long-term shareholders.” 2/06/14 email from Don Destino, COO of Harvest Capital, to management
Slide 51: Harvest has the Wrong Agenda and Cannot Be Trusted
Harvest has the Wrong Agenda and CANNOT Be Trusted Harvest has offered no new ideas or strategy – they essentially copied Green Dot’s December 2015 investor presentation as the “Harvest Plan” Mr. Osher says that he is a long-term holder interested in increasing the Company’s share price, yet his beh
Slide 52: Harvest's Misrepresentations
Harvest’s Misrepresentations
Slide 53: Harvest's Platform is Based on Misrepresentations and Untruths
Harvest's Platform is Based on Misrepresentations and Untruths The Facts Unlimited access to the Board and independent directors as well as hundreds of meetings, phone calls and emails with Management and Board members; yet Harvest discontinued private engagement and launched disruptive public campa
Slide 54: Harvest's Platform is Based on Misrepresentations and Untruths
Harvest's Platform is Based on Misrepresentations and Untruths The Facts Green Dot’s stock price has appreciated ~39% since the company disclosed its new product initiatives in December 2015. Indexed stock price performance on a 1 and 3 year basis has outperformed our Prepaid Industry Peer Group JP
Slide 55: Green Dot is the Undisputed Champion of Prepaid
Green Dot is the Undisputed Champion of Prepaid Total Revenue 2015 (millions) Total EBITDA 2015 (millions) Most Active Cards 2015 (millions) Retail Distribution 2015 (thousands) Revenue/Active Card Growth (Q1 2016) Sustainable Business Model Pending Regulatory Risk to Profit Consumer Advocate Rating
Slide 56: Conclusion
[ Conclusion }
Slide 57: Green Dot Is Creating Significant Shareholder Value
Green Dot Is Creating Significant Shareholder Value Don’t Derail the Company’s Positive Momentum Green Dot’s stock has appreciated ~39%* since management publicly disclosed new initiatives to drive future growth Green Dot’s clear Six-Step Plan is on track – investors are just beginning to realize th
Slide 58: Appendix
[ Appendix }
Slide 59: Endnotes
Endnotes Harvest 13D Filing Harvest 13D Filing Harvest Additional Soliciting Material filed with SEC on April 27, 2016 FactSet Heidi Moore, "KKR: Goodbye to All That“ Wall Street Journal, December 16, 2008 Information obtained from an independent corporate investigative services firm retained by Gre
Slide 60: Endnotes
Endnotes Claims compiled from Harvest 13D Filing, Harvest Proxy Statement filed with SEC on April 19, 2016, and Harvest Additional Soliciting Material filed with SEC on April 27, 2016 Ibid NetSpend analyst estimates
Slide 61: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information
Slide 62: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information 2010 2011 2012 2013 2014 2015 YTD YTD YTD YTD YTD YTD (in thousands) Reconciliation of total operating revenues to non-GAAP total operating revenues Total operating revenues $,363,888 $,467,398 $,546,285 $,573,621 $,601,552 $,694,700 Stock-based retailer i
Slide 63: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information 2010 2011 2012 2013 2014 2015 YTD YTD YTD YTD YTD YTD (in thousands) Reconciliation of total operating revenues to non-GAAP total operating revenues Total operating revenues $,363,888 $,467,398 $,546,285 $,573,621 $,601,552 $,694,700 Stock-based retailer i
Slide 64: Supplemental Non-GAAP Financial Information
Supplemental Non-GAAP Financial Information 2010 2011 2012 2013 2014 2015 YTD YTD YTD YTD YTD YTD (in thousands) Reconciliation of total operating revenues to non-GAAP total operating revenues Total operating revenues $,363,888 $,467,398 $,546,285 $,573,621 $,601,552 $,694,700 Stock-based retailer i
Slide 65: Supplemental Non-GAAP Financial Information: FY 2016 Guidance
Supplemental Non-GAAP Financial Information FY 2016 RANGE LOW HIGH Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to Projected GAAP Total Operating Revenue (1) (In millions) Total operating revenues $704.6 $709.6 Contra-revenue advertising costs (3)(4) 0.4 0.4 Non-GAAP to
Slide 66: Supplemental Non-GAAP Financial Information: FY 2016 Guidance
Supplemental Non-GAAP Financial Information FY 2016 RANGE LOW HIGH Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to Projected GAAP Total Operating Revenue (1) (In millions) Total operating revenues $704.6 $709.6 Contra-revenue advertising costs (3)(4) 0.4 0.4 Non-GAAP to
Slide 67: Non-GAAP measures notes
(1) To supplement the Company’s consolidated financial statements presented in accordance with GAAP, the Company uses measures of operating results that are adjusted to exclude various, primarily non-cash, expenses and charges. These financial measures are not calculated or presented in accordance w
Slide 68: Use of non-GAAP financial measures
The Company’s management uses the non-GAAP financial measures: as measures of operating performance, because they exclude the impact of items not directly resulting from the Company’s core operations; for planning purposes, including the preparation of the Company’s annual operating budget; to alloc
Slide 69: Non-GAAP footnotes
(3) This expense consists of certain co-op advertising costs recognized as contra-revenue under GAAP. The Company believes the substance of the costs incurred are a result of advertising and is not reflective of ongoing total operating revenues. The Company believes that excluding co-op advertising