Euronet Worldwide, Inc. · NASDAQ:EEFT
Euronet Worldwide — Merger or Acquisition (November 2003)
29 slides from Euronet Worldwide's merger presentation, Nov 26, 2003
Slide 1: Euronet Worldwide Investor Conference Call
Symbol: EEFT www.euronetworldwide.com 24, 2003 Investor Conference Call November Presenters Michael J. Brown, Chairman & CEO Rick Weller, EVP & CFO Platt, Co-Managing Director Transact Jeff B. Newman, EVP & General Counsel Welcome to Euronet Worldwide J Bernd Artinger, Co-Managing Director Transact
Slide 2: Forward-Looking Statements
• 11/21/03 • the are of the the in for the from by concern or statements. anticipated number exchange described Exchange 10-Q for information unaudited differ obtained a affecting affecting and Form 10-K this may be those of foreign are which expectations, Form Financial while it may from result ris
Slide 3: Euronet Overview
11/21/03 Euronet Overview Michael Brown Chairman & CEO 3
Slide 4: Transact acquisition highlights
• 11/21/03 to • the in product rapid for $0.07 diluted based processing Germany incremental processing processing for value—fully European prepaid deployment 2004 leadership terminal offers per in With and transaction market Accretive European transaction with largest Country, Profitable, EFT GPRS l
Slide 5: Euronet's Business Lines
11/21/03 Prepaid Processing Transact EPAY PaySpot R&D Asia/Pacific Corporate EFT Processing EMEA Euronet’s Business Lines Software Solutions More than 90% of revenues are recurring 5
Slide 6: Financials
11/21/03 Euronet Financials Rick Weller EVP & CFO 6
Slide 7: Transact Retail Locations
11/21/03 2003 2002 2001 2000 1999 1998 1997 20 18 16 14 12 10 8 6 4 2 0 Transact Retail Locations Thousands 7
Slide 8: Quarterly Transaction Growth
11/21/03 last 3 M Payment Q3 03 Pre-Paid Q2 03 Q1 03 There can be no assurance that these growth rates will continue. Quarterly Transaction Growth 9 8 7 6 5 4 3 2 1 0 Transact Total Transactions Millions USD 8
Slide 9: Quarterly Revenue Growth
11/21/03 last 3 M Q3 03 Payment e t t a r h t t w o r g y l l r e t t r a u Q2 03 q % Pre-Paid 8 1 on a recognition basis consistent with Euronet’s other pre-paid processing revenues Q1 03 Quarterly Revenue Growth * 3.5 3.0 2.5 2.0 1.5 1.0 0.5 - Transact Revenue Millions USD *Transact unaudited net
Slide 10: Transact EBITDA Growth
11/21/03 last 3 M Payment Q3 03 Pre-Paid Q2 03on a recognition basis consistent with Euronet’s other pre-paid Q1 03*Transact unaudited ebitda processing revenues There can be no assurance that these growth rates will continue. Quarterly Growth 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Transact EBITDA Growth Milli
Slide 11: Euronet and Transact
11/21/03 Euronet and Transact Michael Brown Chairman & CEO J Platt & Bernd Artinger Co-Managing Director Transact 11
Slide 12: Prepaid mobile recharge market statistics
• 11/21/03 more prepaid to ability as 93% have for the see methods throughout to customers accounts 23% users challenges Operators operators recharge Survey from stimulate prepaid growth AMS • Mobile biggest to the and representation prepaid is their of multiple 2002 ranges all the future 2000 • Sta
Slide 13: Who is Transact?
• 11/21/03 e-top- cards online applications and secure locations credit in Germany cardholders retail in • cash-based and solutions eCommerce of Country • debit experience institutions in 18,500 providing years pre-paid integrate verification Largest e-top-up across both 12 EFT, of than financial to
Slide 14: Transact key facts
• 11/21/03 of • per EBITDA 18% 2003 of in Munich, • growth rate months operation location • Facts growth 1 team • business three scaleable Key revenue revenue • recent million and employees, • 2003 quarter Most $1.1 35 Germany Management Unaudited • Transact Strong Profitable Lean • • • 14
Slide 15: Transact retailers and operators
11/21/03 1,000 Small Retailers Retailers and Airtime Suppliers Major Multiple Retailers All Major German Operators, 20,000 Points of Sale, 18,500 Retail Outlets Transact 15
Slide 16: Transact's Transaction Processing Network
11/21/03 Mobile Operator(s) Mobile Operator A Mobile Operator B Mobile Operator C Distributors Transact Transaction Processing Network & Technology Platform Major Retailer Data Center Transact’s Transaction Processing Network GPRS POS Terminals POS Terminals e-POS 16
Slide 17: Pre-Paid Users in Germany
11/21/03 0 3 2 0 0 2 2 0 0 1 Germany Germany 2 0 0 0 2 0 Source: EMC in 9 9 1 9 9 8 1 9 35 30 25 20 15 10 5 0 Pre-Paid Users Pre Millions 17
Slide 18: Shift to e-top-up
• 11/21/03 Shift • point, at 55% data. • the underway currently provided experience • is reference will • a is operator • Shift As UK approximately e-top-up market • • mobile • Distribution on German • based the estimates market • Scratch card 75% 2003 assurance UK • Airtime off no the • Company be
Slide 19: Per-Transaction Product Economics
11/21/03 Per-Transaction Product Economics Merchant Card Processing: $0.23 Average per transaction, including service charge Prepaid Through Distributor: Based on average top-up amount $0.16 average per transaction, including service charge Prepaid Directly to Retailer: Based on average top-up amoun
Slide 20: Economic Model: Transact Most Recent Three Months
11/21/03 (unaudited) 3.3 (2.2) (0.3) 0.8 1.1 USD Millions $ $ $ $ $ Economic Model: TransactMost Recent Three Months Total Revenue, net Direct Costs & Operating Expenses Depreciation & Amortization Operating Income EBITDA EBITDA is the result of adding depreciation and amortization to operating inco
Slide 21: Advantages of Euronet and Transact combination
• 11/21/03 other effort for and customers lead based across their Switzerland) to implementation especially Advantages advantage following (Austria, team for markets; internet Euronet management hardware especially • Transact markets Lekkerland POS current systems Cost terminals till as Euronet’s ex
Slide 22: Emerging Opportunities
11/21/03 Loyalty Schemes Content Purchase Money Transfer Insurance Top-Up Emerging Opportunities International Authorization Cross-Border Electronic Solutions Cash-Based Top-Up Card-Based Top-Up Top-Up Future Value-Added Services Top-Up Touchpoints 22
Slide 23: Transaction Summaries
11/21/03 Transaction Summaries Rick Weller EVP and CFO 23
Slide 24: Transact Deal Summary
11/21/03 . . million USD total purchase price million cash million in 643,048 EWI shares (approximately 2.3% of current Estimated at $20.0 million USD to $30.0 million USD based on growth estimate Half cash; half Euronet stock** (Euronet has the right to pay in cash) *Based on current projections of
Slide 25: Private Equity Placement
• 11/21/03 • certain period than month 45 less market with day is • accredited 15 • Management the a trailing 45 price an to over over average, that • with Asset right $2.00 • premium registration price within prevailing Placement Fletcher purchase weighted date less Shares $2.00 investment to marke
Slide 26: Expected EPS contribution
• 11/21/03 • EPS to fully will of funding, $0.07 diluted of acquisition Transact fully transactions 6% performance assurance • the its future no be • related of • contribution that to these can • account the share 2004 in projections there approximately approximately which with expects current to in
Slide 27: Euronet today
• 11/21/03 are • awards Zealand contract Indonesia-JV Malaysia-JV New Romania Poland Serbia-JV Slovakia U.K. U.S. • recent implemented Republic when fully • Today transactions/quarter 4,900+ Australia Czech Croatia Germany Greece Egypt Hungary India Ireland • ATMs; points-of-sale retailers employees
Slide 28: Leadership positions and market priorities
• 11/21/03 • Leadership • Market Australia Germany • UK • PrepaidPositions • • • 28
Slide 29: Questions?
11/21/03 Daniel Henry President & COO Rick Weller EVP & CFO Jeff Newman EVP & Corporate Counsel Platt Transact Questions? Michael Brown Chairman & CEO J Bernd Artinger Co-Managing Directors 29
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