Gpgi, Inc. · NYSE:GPGI
Gpgi — Roman DBDR Tech Acquisition — SPAC Merger (July 2021)
86 slides from Gpgi's SPAC merger presentation, Jul 15, 2021
Slide 1: Analyst Presentation July 2021
0 0 ANALYST PRESENTATION July 2021
Slide 2: Disclaimer
1 1 Disclaimer This presentation (this “Presentation”) was prepared for use by Roman DBDR Tech Acquisition Corp . (“Roman DBDR”) and CompoSecure Holdings, L . L . C . (the “Company,” “CompoSecure,” “we” or “our”) in connection with their proposed business combination (the “Proposed Transaction”) . T
Slide 3: Table of Contents
2 2 Table of Contents Section Pages Investment Highlights and Team Overview 3 - 12 Company Overview: CompoSecure Metal Payment Cards 13 - 34 Growth Execution Plan: Arculus Ecosystem 35 - 51 Business Update 52 - 54 Financial Overview 55 - 61 Transaction Overview 62 - 65 Appendix 66 - 85
Slide 4: Investment Highlights and Team Overview
3 3 INVESTMENT HIGHLIGHTS AND TEAM OVERVIEW
Slide 5: Transaction Overview
4 2 4 Transaction Overview 1 Includes impact of all 5.789mm founder shares vesting at close 2 Based on the midpoint of range of management projections. Please see Financial Overview section 3 Existing CompoSecure shareholders may receive 7.5mm earnout shares. 3.75mm shares are earned if the VWAP is
Slide 6: Presenters
5 5 Presenters Dr. Don Basile, PhD Jon Wilk Timothy Fitzsimmons Adam Lowe, PhD Chairman & Co - CEO, Roman DBDR 20+ years of technology industry experience across Executive, investor or board member in 30+ Silicon Valley growth companies Former CEO, Co - Founder and Director of two leading data stora
Slide 7: Tech Industry Veterans and Board of Directors
6 6 1 Key DCM Investments 2 Prior Board Involvement Tech Industry Veterans with Extensive Operating and Investing Experience Year Partnership 20+ Years of Tech Industry Experience, with Expertise in Data Storage, Security and Blockchain 45+ Successful IPOs/ Sale Processes Multiple Dr. Don Basile, Ph
Slide 8: Key Investment Highlights
7 5 7 Key Investment Highlights Category Leader of Next - Gen Payment Technology, Security, and Cryptocurrency Solutions “Massive” TAM across markets including payments, cryptocurrency and digital assets Premier payments technology and security provider coupled with highly scaled, advanced manufactu
Slide 9: Unlocking Value Through Partnership with Roman DBDR
8 8 Unlocking Value Through Partnership with Roman DBDR $12B 3 $4B 3 $4B 4 $38B 2 $2B 1 Ecosystem 1 Diluted market capitalizations sourced from FactSet as of February 15, 2021 (except for Bakkt, which pertains to the IPO value) 2 Based on sum - of - the - parts valuation of parent company by broker
Slide 10: Building Digital Assets Ecosystem from Foundation in Superior Hardware
9 9 Hardware Infrastructure Apps & Services 3 rd Party Apps & Services Hardware Infrastructure Apps & Services 3 rd Party Apps & Services Ecosystem Ecosystem Cryptocurrency eGaming Warranty & Insurance Digital assets Building Digital Assets Ecosystem from Foundation in Superior Hardware
Slide 11: Convergence of Two Massive Market Opportunities
10 10 $0.7tn $5.5tn 2020A 2027E Convergence of Two Massive Market Opportunities 1 Edgar, Dunn & Company. 2019 Metal Cards Market Sizing and Consumer Research Report. “Total Addressable Market” is defined her e a s the estimated subset of payment cards issued globally in 2021 for which there is deman
Slide 12: Cryptocurrency is a Burgeoning Asset Class
11 11 Cryptocurrency is a Burgeoning Asset Class Requiring Bespoke Solutions 1 Source: Coinmarketcap.com; average daily volume for January 2021; 2 Verified Market Research; 3 Blockchain.com historical data and management estimates; 4 Mordor Intelligence and management estimates”; 5 January 2016 - Ja
Slide 13: Robust Growth from Substantial Base of Revenue and Profitability
12 12 Robust Growth from Substantial Base of Revenue and Profitability $261 $480 $612 $485 $1,577 2020A 2025E Metal Payment Card Solutions Crypto & Arculus Payments Solutions Digital Assets, eGaming & Insurance $116 $586 2020A 2025E Source: Management estimates Net Revenue by Solution ($mm) Adjusted
Slide 14: 13 13
13 13
Slide 15: CompoSecure at a Glance
14 14 CompoSecure at a Glance Leading Developer of New, Highly Differentiated Payment and Cold - Storage Products 1 Figures reflect midpoint of 2021E estimate ranges for net revenue ($276mm - $296mm) and Adj. EBITDA ($95mm - $110mm) 2 CAGR calculated using the midpoint of 2021E net revenue estimate
Slide 16: CompoSecure Builds Platforms for Security and Financial Technology Innovation
15 15 CompoSecure Builds Platforms for Security and Financial Technology Innovation Company Timeline Future Platforms for Digital Currencies and Security Contactless Payment Technology Leadership Reimagining the Payment Card in Metal Heritage in ID Security and Materials Science 2000 Founded to deve
Slide 17: Proven Track Record of Customer Acquisition
16 16 Proven Track Record of Customer Acquisition Palladium Sapphire Preferred Sapphire Reserve Platinum Venture Reserve Platinum Logo wins 2020 - 2021 2017 - 2019 2010 - 2016 2003 - 2009 2003 2009 2010 2016 2017 2018 2019 2020 2021
Slide 18: CompoSecure's Payment Cards Market
17 17 1 Based on company estimates 2 Edgar, Dunn & Company. 2019 Metal Cards Market Sizing and Consumer Research Report CompoSecure’s Payment Cards Market ▪ Initially, higher priced metal cards were designed for affluent consumers ▪ CompoSecure innovations have reduced production costs (and prices),
Slide 19: Enormous Global Payment Cards Market
18 18 Enormous Global Payment Cards Market Source: Edgar, Dunn & Company. 2019 Metal Cards Market Sizing and Consumer Research Report Global Payment Card Markets Are Primed to Grow and Adopt Metal Form Factors 13.7 14.4 15.2 16.1 17.0 17.8 2020 2021E 2022E 2023E 2024E 2025E ▪ Card schemes, governmen
Slide 20: Differentiated Capabilities: A Metal Payment Card Industry Leader
19 19 Differentiated Capabilities A Metal Payment Card Industry Leader ▪ Extensive trade secrets in metal card printing, proprietary coatings, and specialized etching and engraving ▪ Key manufacturing equipment heavily customized to enable proprietary processes ▪ Extensive experience collaborating w
Slide 21: Bespoke Card Programs Have Become Critical to Our Clients
20 20 Bespoke Card Programs Have Become Critical to Our Clients Highly Customized Programs with Best - in - Class Security and Form to Meet Partner Needs CompoSecure Issuer Client Since: 2016 2003 2008 2014 Selected Metal Card Programs: 1 If CompoSecure is unable to provide its products and services
Slide 22: Products Prominently Featured in Issuer Advertising
21 21 CompoSecure’s Products are Prominently Featured in Issuer Advertising Metal is a Marketing Tool to Stay “Top of Wallet” 1 Edgar, Dunn & Company. 2019 Metal Cards Market Sizing and Consumer Research Report 2 See more in CompoSecure’s video gallery at composecure.com/media/#videoanchor Demonstra
Slide 23: Market Research – Demand for Metal
22 22 Market Research – Demand for Metal Source: 1 Edgar, Dunn & Company’s research , Metal Payment Cards Impact, 2019 Source: 2 Neurons October 2019 Analysis Key findings from 18,000 people across 18 markets: ▪ Rapid rise in the affluent - mass and affluent segments across the globe ▪ Increased con
Slide 24: Millennials are Willing to Pay a Higher Price for Premium
23 23 Source: Global Data – Millennials are an important cohort to the population; Nielson, Global Data, Deloitte, Euromonitor & EDC R esearch Millennials are Willing to Pay a Higher Price for Premium millennials are willing to pay a higher price for high - quality premium products, compared to 35%
Slide 25: Strong Consumer Demand for Metal Cards
24 24 Strong Consumer Demand for Metal Cards 1 Edgar, Dunn & Company. 2019 Metal Cards Market Sizing and Consumer Research Report Surveys were completed at different times acr oss different markets – UK, USA, Brazil, Japan, Hong Kong, Singapore (May 2018); Australia, Canada, India, Mexico (December
Slide 26: Attractive Metal Card Economics for Issuers
25 25 Attractive Metal Card Economics for Issuers 1 Reflects current expiration cycle range 2 Estimated based on the typical price of CompoSecure metal cards in 2019 3 CompoSecure proprietary analysis based on average program embedded acquisition costs and portfolio performance to assess payback on
Slide 27: American Express Product Refresh
26 26 American Express Product Refresh Consumer Product Refresh Metal Cards Proactively Requested by Customers 290K Percentage of New Platinum Accounts that are Millennials 47% New Accounts Acquired & Upgrades 1 52% New Existing Existing New New New Q4 ‘17 Spend Growth 2 17% New metal card design 5x
Slide 28: Favorable Shift in Consumer Behavior Achieves Top of Wallet Status
27 27 Favorable Shift in Consumer Behavior Achieves “Top of Wallet” Status Lift on Chase Spend 1 + €7/month ~ $450 - $450k 1 JP Morgan Chase 2/27/18 Investor Day, Page 35 and JP Morgan Chase 2/27/17 Investor Day, Page 17. Compares credit card spend p re - Sapphire Reserve vs. post - Sapphire Reserve
Slide 29: Key Trends Impacting Issuers
28 28 Key Trends Impacting Issuers (1) J.P. Morgan Chase 2019 Investor Day Presentation (2) Source: PYMNTS: “How Consumers Are Using The Mobile Wallet To Make Purchases At The Physical POS” (3) U.S. Census Bureau: 3 rd Quarter 2020 Retail E - Commerce Sales Report Given Demonstrated Consumer Behavio
Slide 30: Entrenched Consumer Payments Behavior
29 29 38% 39% 23% 9% 20% 5% % Concerned about Poor Protection % of Payment Disputes that were Difficult to Resolve % Uncertain over whom to Contact with Disputes Mobile Payments Credit Cards Entrenched Consumer Payments Behavior (1) Source: PYMNTS: “How Consumers Are Using The Mobile Wallet To Make
Slide 31: COVID-Driven Acceleration of Tap-To-Pay Adoption
30 30 COVID - Driven Acceleration of Tap - To - Pay Adoption Sources Visa. “Merchants and consumers turn to tap to pay as part of new daily routines.” April 30, 2020. Mastercard. “Mastercard study shows consumers moving to contactless payments for everyday purchases as they seek cleaner, tou ch - fr
Slide 32: CompoSecure's Commitment to Sustainability
31 31 The stainless steel in CompoSecure’s metal cards is comprised of 75% recycled stainless steel For every one million metal veneer cards manufactured, more than ten tons of material is saved from going to landfills When sending a cardholder a new card, some issuers include a postage paid return
Slide 33: Why We Continue to Win
32 32 Why We Continue to Win • First metal credit card (2003) • First metal “tap - to - pay” credit card (2016) • Arculus launch in 2021 • Pipeline of new tech including biometric security, dynamic CVV, keychain cards, LED 100+ Card Programs We Enable Clients to Grow Customer Acquisition, Spending,
Slide 34: CompoSecure's Growth Opportunities
33 33 CompoSecure’s Growth Opportunities CompoSecure is an Engine of the Accelerating Transformation of Payment Cards to Metal International Growth Domestic Expansion Technology & Innovation ▪ remains in the transformation of payment cards to metal among existing and prospective issuer clients ▪ con
Slide 35: Pursuing Multiple New Large Growth Opportunities
34 34 CompoSecure is Pursuing Multiple New Large Growth Opportunities Digital Asset & Gaming Cryptocurrency Solutions Arculus Payments Warranty & Insurance Three Factor Authentication Technology
Slide 36: @Compcdsecure
@Compcdsecure security U innovation durability
Slide 37: Building Digital Assets Ecosystem From Foundation in Superior Hardware
36 36 Hardware Infrastructure Apps & Services 3 rd Party Apps & Services Hardware Infrastructure Apps & Services 3 rd Party Apps & Services Ecosystem Ecosystem Cryptocurrency eGaming Warranty & Insurance Digital assets Building Digital Assets Ecosystem From Foundation in Superior Hardware
Slide 38: The Arculus Ecosystem Roadmap
37 37 The Arculus Ecosystem Roadmap Sources: Accenture, Bessemer State of the Cloud 2020, Bond Capital, IDC 1 Estimated global crypto wallet users (all cold and hot) by 2025E 2 Spend on video games; increasingly monetized in - game. Source: NewZoo, 2020 Cryptocurrency Solutions Digital Assets & eGam
Slide 39: Large and Growing Addressable Market
38 38 Large and Growing Addressable Market Sources: Accenture, Bessemer State of the Cloud 2020, Bond Capital, IDC 1 Estimated global crypto wallet users (all cold and hot) by 2025E 2 Spend on video games; increasingly monetized in - game. Source: NewZoo, 2020 Global Debt $185tn M1 Money Supply $35t
Slide 40: Cryptocurrency Wallets Exist in a Variety of Forms
39 39 Cryptocurrency Wallets Exist in a Variety of Forms Cold Storage Wallets Hot Wallets Generate and store private and public keys and digitally sign transactions all within internet - connected devices where storage of the keys are hosted by a third party (e.g., exchange - hosted) Store private k
Slide 41: Hackers Are Targeting Cryptocurrency Assets Accessed by Hot Wallets
40 40 Hackers Are Targeting Cryptocurrency Assets Accessed by Hot Wallets (1) https://www.ledger.com/academy/crypto/hacks - timeline/ (2) https://www.bankinfosecurity.com/turkish - police - probe - thodex - cryptocurrency - exchange - a - 16455 (3) https://www.protocol.com/newsletters/protocol - fin
Slide 42: Cold Storage Wallet Products Provide Suboptimal User Experience
41 41 Cold storage wallet hardware products available in the market today provide a suboptimal user experience and may not adhere to true cold storage security principles Nature of Early Incumbent Cold Storage Hardware Products Embedded Friction in the User Experience Battery Power Limits Mobility P
Slide 43: Crypto Wallet Addressable Market
42 42 Crypto Wallet Addressable Market (1) Source: Blockchain.com and CompoSecure Management estimates; figures shown are for Blockchain.com - issued wallets only (2) Sources: “Global Hardware Wallet Market,” (Mordor Intelligence, 2020) and CompoSecure management estimates Rapidly Growing Base of Cr
Slide 44: Cold Storage Hardware Wallet Estimated Annual Sales
43 43 Cold Storage Hardware Wallet Estimated Annual Sales (1) Sources: “Global Hardware Wallet Market,” (Mordor Intelligence, 2020) and CompoSecure management estimates (2) Source: “Global Hardware Wallet Market,” (Mordor Intelligence, 2020) Demand Is Underpinned by Expanding Cryptocurrency Ownershi
Slide 45: CompoSecure Aims to Leverage Unique Strengths for Arculus
44 44 CompoSecure Aims to Leverage Unique Strengths for Arculus Advantages in Product Design, Security, Financial Institution Relationships, and Manufacturing Capabilities Metal provides a familiar premium experience and greater protection of internal hardware components Metal Card Form Factor Seaml
Slide 46: Arculus Enables Safe Storage for Crypto Assets
45 45 Arculus Enables Safe Storage for Crypto Assets Superior User Experience Seamlessly send, receive, and swap cryptocurrency Easily track and record historical transactions Simply tap - to - transact with the Arculus Key card Secure: Advanced three - factor authentication security across biometri
Slide 47: Arculus Cold Storage Wallet
46 46 Arculus Cold Storage Wallet ▪ The Arculus platform features the proprietary, easy - to - use Arculus Wallet mobile app and slim, metal Arculus Key card ▪ The platform utilizes advanced three - factor authentication security across different form factors: (1) biometric; (2) PIN; and (3) Arculus
Slide 48: Arculus Alleviates the Burdens of Other Crypto Storage Solutions
47 47 Arculus Alleviates the Burdens of Other Crypto Storage Solutions Arculus Other Cold Storage Hot Wallet Offline Storage NONE Ease of Use x x Superior Security xx x Longer - Term Storage x x Premium Experience x Arculus is the only Crypto storage product that combines ease of use and superior se
Slide 49: Cold Storage Hardware Wallet Feature Comparison
48 48 Cold Storage Hardware Wallet Feature Comparison Arculus Offers Best - In - Class User Experience Ledger Trezor Model T Form Factor Card Fob with Display Fob with Display Companion App Arculus Wallet Ledger Live Trezor Wallet Key Storage Type Cold Cold Cold Secure Element Certified Secure Eleme
Slide 50: Multi-Pronged Go-To-Market Strategy and Revenue Model
49 49 Multi - Pronged Go - To - Market Strategy and Revenue Model (1) B2B sales are assumed to include a hardware sale and the potential for transaction fees or recurring user fees depending on t he partnership. Transaction fees are a revenue share arrangement with Arculus’ processing partners for t
Slide 51: Diversified Revenue Model
50 50 Diversified Revenue Model Multiple User Monetization Opportunities Direct - to - Consumer sales Business - to - Business sales Transaction Fees Hardware Sales Recurring Fees Customer purchases Arculus Key card CompoSecure charges consumer per Arculus Key sold Example Transactions Customer trad
Slide 52: Envisioned Arculus Platform Evolution
51 51 Payments + Arculus + Secure Log - in Payments & Storage ▪ Adds payment card functionality to hot and cold crypto storage platform ▪ Users to be able to tap card to phone to verify identity to open the Arculus Wallet app or enable transactions ▪ Bypass customer service ▪ Enables three - factor
Slide 53: @Compdecure
@Compdecure security 0 innovation durability
Slide 54: Business Update
53 53 Business Update • Growing relationship with Crypto.com for metal cards across North America, Asia, and European markets. Crypto.com has over 10 million users worldwide and is a top - ten finance app in both the App Store and Google Play. • Partnered with Gemini on cryptocurrency rewards metal
Slide 55: Business Update – Industry Trends
54 54 Business Update – Industry Trends • March 2021: hacker stole $5.7M from cryptocurrency platform roll by obtaining private key from hot wallet (1) • April 2021: critics accuse Turkish cryptocurrency exchange CEO of fleeing country with $2B worth of customers’ assets as none of the 390K active u
Slide 56: @Gmpdsecure
@Gmpdsecure
Slide 57: Rapid Acceleration of Digital Asset Adoption
56 56 Rapid Acceleration of Digital Asset Adoption Sources: Investor presentations, management estimates 1 Projected Active Users at year end across Arculus digital assets, eGaming, and cryptocurrency services 2 Source: Blockchain.com 3 Historical data from studio.glassnode.com/metrics; 2021E non -
Slide 58: Projected Net Revenue Evolution
57 57 Projected Net Revenue Evolution 155 243 $261 $276 $316 $363 $418 $480 $93 $261 $612 $33 $168 $485 $155 $243 $261 $276 - $296 $336 - $376 $490 $847 $1,577 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 30% 42% 8% 18% 2% 2025E Payments Hardware Crypto Hardware Subscription Transaction fees Warrant
Slide 59: Strong EBITDA and Free Cash Flow
58 58 $69 $107 $116 $95 - 110 $100 - 110 $160 $274 $586 2018 2019 2020 2021E 2022E 2023E 2024E 2025E Adj. EBITDA Adj. EBITDA Margin 33% 37% 44% 45% 44% 32% Strong EBITDA and Free Cash Flow Periods impacted by: COVID - 19 impact Increased marketing spend related to Arculus launch: $25mm in 2021E $50m
Slide 60: Financial Summary
59 59 Financial Summary Source: Company financials Note: Margins are calculated on Net revenues $mm Q1 2021A Q4 2020A Q1 2020A Total Net Revenue $64 $54 $80 % QoQ Growth 19% -16% 17% % YoY Growth -20% -22% 74% COGS ($30) ($28) ($38) Gross Profit $34 $26 $42 % Margin 53% 48% 53% SG&A ($8) ($20) ($13)
Slide 61: Financial Information by Segment
60 33 60 Financial Information by Segment Metal Payment Card Solutions 2021E 2022E 2023E 2024E 2025E Unit Sales (mm) 22 25 29 33 39 % growth 7% 15% 14% 15% 15% N e t R e v enue ($mm) $276 $316 $363 $418 $480 % growth 6% 15% 15% 15% 15% Ope r a ting Expen s e s 3 (156) (178) (205) (237) (272) Marketi
Slide 62: Historical Levered Free Cash Flow
61 34 61 Source: Company financials 1 These figures reflect the Company’s historical legal structure as a pass - through entity for tax purposes that results in the Company historically not paying tax at the entity level. In the Proposed Transaction, the Company intends for CompoSecure Rollover Equi
Slide 63: 62 62
62 62
Slide 64: Transaction Overview
63 36 63 Transaction Overview Illustrative Sources and Uses ($mm) Pro Forma Enterprise Valuation at Close ($mm) Illustrative Post - Transaction Ownership 1,2,3 Sources CompoSecure Rollover Equity $492 SPAC Cash In Trust 1 236 Common Equity PIPE Proceeds 2 45 Convertible Notes Proceeds 2 130 Total So
Slide 65: Growth and Margins Compare Favorably to Peers
64 37 64 2 9 % ( 10%) 4 8 % 3 0 % 1 3 % 7% 4 4 % Crypto & Crypto - related FinTech / Payments 5 3 % 7 5 % 1 2 % 2 1 % 3 5 % 3 0 % 20% CY21E – CY22E Annual Revenue Growth CY22E Adjusted EBITDA margin 30% 21% 2 2 represent median values 4 CY21E – CY25E Revenue CAGR 1 FinTech / Payments 3 FinTech / Pay
Slide 66: Peer Valuation Comparison
65 38 65 4x 61x 15x 11x 34x 27x 17x Source: FactSet as 3/12/21, company guidance Crypto & Crypto - related FinTech / Payments EV / CY21E Revenue 22x 3x 15x 13x 9x 26x 21x 14x EV / CY22E Revenue 1 15x 1 FinTech / Payments 4 1 ,2 1 FinTech / Payments 4 1 ,2 1 Impli e d Impli e d CY22E E BIT D A multip
Slide 67: @Compdecure
@Compdecure security 0 innovation durability
Slide 68: Highly Seasoned and Experienced Management Team
67 67 Highly Seasoned and Experienced Management Team Dori Skelding VP, Marketing & Supply Chain 20+ Years Industry Experience Notable Experience Stephen Luft VP, Global Head of Sales 20+ Years Industry Experience Notable Experience Lewis Rubovitz VP, Global Strategy & Business Development 15+ Years
Slide 69: LLR Partners Overview
68 68 LLR Partners Overview Source: LLR Partners website and materials LLR Partners Select Investments ▪ Philadelphia - based middle market financial sponsor that initially invested in CompoSecure in 2015 and will continue to be the company’s largest shareholder post closing ▪ Since founded in 1999,
Slide 70: Select Investors Estimated Returns Summary
69 69 Select Investors Estimated Returns Summary Case Study: Forming and Scaling Leadership: Led company through Series B raising $66.5 million from leading investors including Dell, NEA and Lightspeed Business Development: Secured three major OEM deals (HP, IBM, Dell) and initial commercial deals w
Slide 71: Convertible Notes Private Placement – Summary Terms
70 43 70 Convertible Notes Private Placement – Summary Terms Instrument: Exchangeable Senior Unsecured Notes Issuer: CompoSecure Holdings, L.L.C. Amount: $130 million Maturity: 5 years, NC - 3 customary provisional call right at 130% of conversion price (initially $14.95) Ranking: Senior Unsecured N
Slide 72: Financial Summary
71 71 Financial Summary Source: Company financials Note: Margins are calculated on Net revenues $mm 2018A 2019A 2020A Total Net Revenue $155 $243 $261 % YoY Growth 57% 7% COGS ($76) ($115) ($128) Gross Profit $79 $128 $133 % Margin 51% 53% 51% SG&A ($22) ($41) ($48) Operating Income $57 $87 $84 Net
Slide 73: Adjusted EBITDA Reconciliation
72 72 Source: Company financials Adjusted EBITDA Reconciliation Source: Company financials 1 ISO Litigation Costs : Adds back nonrecurring expenses associated with the ISO litigation 2 Non - Cash Stock Option Expense : Non - cash stock option expenses related to the executive incentive plan 3 Nonrec
Slide 74: Balance Sheets
73 46 73 Source: Company financials Note: Audits completed to PCAOB standards. Financial position has been derived from CompoSecure’s consolidated financial statements for the years ended December 31, 2018, 2019 and 2020 respectively. Balance Sheets ($mm) 2018A 2019A 2020A Assets Current Assets Cash
Slide 75: Statements of Operations
74 47 74 Statements of Operations Source: Company financials Note: Audits completed to PCAOB standards. Financial position has been derived from CompoSecure’s consolidated financial statements for the years ended December 31, 2018, 2019 and 2020 respectively. These figures reflect the Company’s hist
Slide 76: Statements of Cash Flows
75 48 Statements of Cash Flows ($mm) 2018A 2019A 2020A Cash flows from operating activities Net income $ 52 $ 81 $ 78 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 8 9 10 Equity compensation expense 1 2 2 Inventory reserve 0 (0) 1 Amortization of defer
Slide 77: Adjusted EBITDA Reconciliation
76 76 Source: Company financials Adjusted EBITDA Reconciliation 1 2 Non - Cash Stock Option Expense : Non - cash stock option expenses related to the executive incentive plan 3 Nonrecurring Transaction Costs : Transaction related costs associated with prior transaction processes and public readiness
Slide 78: Balance Sheets
77 77 Balance Sheets Source: Company financials Note:. Audits completed to PCAOB standards. Financial position has been derived from CompoSecure’s consolidated financial statements for the year ended December 31, 2020.. Q1 2021 financial statement is not audited. $mm Q1 2021A 2020A Assets Current As
Slide 79: Statements of Operations
78 78 Statements of Operations Source: Company financials Note: Financial information has been derived from CompoSecure’s unaudited consolidated financial statements for the periods ended March 31, 2021 and 2020. $mm Q1 2021A Q1 2020A Revenue Net sales $64 $80 Cost of sales 30 38 Gross profit 34 42
Slide 80: Statements of Cash Flows
79 79 Statements of Cash Flows Source: Company financials Note: Financial information has been derived from CompoSecure’s unaudited consolidated financial statements for the periods ended March 31, 2021 and 2020. $mm Q1 2021A Q1 2020A Cash flows from operating activities Net income $23 28 Adjustment
Slide 81: Trading Comparables – FinTech / Payments
80 49 80 ( $ bn ) Firm value Revenue growth Revenue CAGR Gross margin Adj. EBITDA margin EV / Revenue EV / Adj. EBITDA CY21E CY22E CY21E - CY25E CY22E CY22E CY21E CY22E CY22E Source: FactSet as 3/12/21, company guidance Note: Presented in descending order based on Firm values; EUR & CAD currencies c
Slide 82: Trading Comparables – Metal Card Payment Solutions
81 50 81 Revenue growth Revenue CAGR Gross margin Adj. EBITDA margin EV / Revenue EV / Adj. EBITDA Trading Comparables – Metal Card Payment Solutions Source: FactSet as 3/12/21, company guidance Note: Presented in descending order based on Firm values; N/M indicates multiples that are not meaningful
Slide 83: Risk Factors
82 82 Risk Factors The COVID - 19 pandemic has had a negative impact on our business and, if the pandemic continues or worsens, these impacts could be amplified and have a material adverse effect on our business, financial condition and results of operations. We may not be able to sustain our revenu
Slide 84: Cryptocurrency Basics
83 5 83 Cryptocurrency Basics Source: Goldman Sachs, Global Macro Research, Top of the Mind, Crypto: A New Asset Class? (May 2021) Joining Network & Buying Bitcoin Transacting in Bitcoin Verifying Bitcoin Transactions Joining Network & Buying Bitcoin
Slide 85: Cryptocurrency Summary
84 5 84 Cryptocurrency Summary There are several key characteristics that differentiate cryptocurrency and fiat currencies Cryptocurrencies Fiat Currencies Benefits 1. Non - Dilutable Asset – Inflation Immune 2. Enables Global Exchanges without Middlemen 3. Enables Smart Contracts 4. Creates Immutab
Slide 86: Thank You
i wy, we THANK YOU @Gmpdecure
Roman DBDR Tech Acquisition — SPAC Merger (July 2021) on 6ix