Moneyonmobile, Inc · OTC:MOMT
Moneyonmobile — Calpian — Investor Presentation (January 2013)
30 slides from Moneyonmobile's investor presentation, Jan 28, 2013
Slide 1: Steady Cash Flow Explosive Growth
Steady Cash Flow Explosive Growth Exhibit 99.1
Slide 2: Required Statement About Forecasts
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. ANY OFFER OF SECURITIES OF THE COMPANY SHALL BE MADE ONLY TO QUALIFIED INVESTORS IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS. THE SECURITIES LAWS PROHIBIT ANY PERSON WHO HAS MATERIAL NON-PUBLI
Slide 3: Management Team
Average 20 years in payments Management Team Harold Montgomery – CEO Stanford MBA 1985 Started in payments in 1987 Shashank Joshi – President MoM Maharastra Institute of Technology 10 years in payments Craig Jessen – President SMU MBA 1984 Started in payments in 1990 David Pilotte – CFO University o
Slide 4: Key Facts
KEY FACTS Trading Symbol OTC BB: CLPI Corporate Headquarters Dallas, TX Stock Price (1-16-2013) (52-Week Range) $2.50 ($3.25 - $1.01) Shares Outstanding (1-16-2013) 23.55M Daily Volume (90-day average at 1-16-2013) 1,872 Market Capitalization (1-16-2013) $58.88M Debt (1-16-2013) $5.68M Cash & Equiva
Slide 5: Company Overview
• Best of Both Worlds • Steady Cash Flow • Explosive Growth Calpian – U.S. Cash Flow Business • Provides credit and debit card processing services to small retail merchants in the U.S. • Growth through acquiring portfolios from Independent Services Organizations (ISO’s) Money on Mobile – Mobile Paym
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Slide 7: Components of a Payment Transaction
(7) COMPONENTS OF A PAYMENT TRANSACTION COMPONENTS OF A PAYMENT TRANSACTION Merchant / Sponsoring Bank Cardholder Merchant Processor Credit Card Association Network Cardholder’s Bank Merchant / Retailer Merchant Processor
Slide 8: U.S. Core Business: Steady, Growing Cash Flows
• Public Comparable: Heartland Payment Systems (HPY) • Public Market Comp is 7.8x EBITDA • Need 4-8 acquisitions per year, Avg $100k/month each • Growth subject to deal flow and pricing negotiations U.S. CORE BUSINESS: STEADY, GROWING CASH FLOWS • Acquires cash flows in the U.S. • Payment processing
Slide 9: 2011-2012 Cumulative Investment Results
• Cash on Cash IRRs >30% 2011-2012 Cumulative Investment Results Purchase Summary Total Cash Invested $6,381,564 Total Stock 817,832 Total Purchase Price $7,199,396 ========= Results Total Cash Received $6,185,214 (Jan 2011 to Dec 2012) Expected IRR 35-45% (over 84 mo. Period)
Slide 10: Money on Mobile
• Calpian invested in Money on Mobile March, 2012 • Money on Mobile is a way for consumers to pay using the cell phone • Uses a virtual currency sold at retail stores. • Replaces the checkbook or debit card used in the US
Slide 11: India Background: The Next Global Growth Engine?
The Next Global Growth Engine? India Background • Population 1.2 Billion, growing to 1.6 Billion by 2030 • 45 cities > 1 million • 30% under age 14 • 30% urbanized/70% rural • Middle Class = ~300 million people ($500/month) • Per Capita GDP = $300/month • 30% below the poverty line • Literacy =61% •
Slide 12: Challenges and Opportunities In India
The window for a fast, easy, reliable payment system is wide open Addressable Market is 650+MILLION Unique Cell Phones Challenges and Opportunities In India Challenges: • All Cash Economy • Lack of Bank Accounts – only 200M of 1.2B people • No Payment Mechanisms – credit, debit or check • Weak Trans
Slide 13: What Can You Buy?
• Fast, easy, reliable, cheap • HUGE value proposition vs. current methods • Rural to Urban migration feeds Domestic Remittance Total Market $200 Billion + What Can You Buy? Allows consumers to use their mobile phone to transact: Pre-paid Cell Phone Pre-paid Television Utility Bill Payment Ticketing
Slide 14: How Does MoM Work? B to B Transaction
32.5 million Consumers 118,189 Retailers Money on Mobile B to B Transaction Margin = .5% to MOM Money on Mobile 6 Satellite TV 15 Cell Providers Relatives CASH CASH CASH B to B Transaction Margin = .5% to MOM How Does MoM Work? B to B Transaction SMS TEXT INSTRUCTIONS
Slide 15: How Does MoM Work? B2C Transaction
32.5 million Consumers 118,189 Retailers Money on Mobile B to C Transaction Margin = 1.5% to MOM Money on Mobile 6 Satellite TV 15 Cell Providers Relatives CASH CASH CASH SMS TEXT INSTRUCTIONS B to C Transaction Margin = 1.5% to MOM How Does MoM Work? B2C Transaction
Slide 16: Fast Adoption
• Fast Adoption • Up 500% in Dec ‘12 Retailer commission % goes down Total $ load value from consumer more than offsets Retailers paid Rs 10 per to load first wallet Retailer trains customer Consumers like the freedom: 24x7 transactions Wide variety of uses Shift from B2B to B2C
Slide 17: Margins Increase 3x
• Margins Increase 3x • Fast growth + Increasing Margins = Momentum As of 12/12 Mobile Top Up DTH TV Bill Pay Margins Increase Across Entire Product Line % Total Volume 69% 28% 3% B2B Margin 0.5% 0.75% 0.2% B2C Margin 1.5% 2.0% 0.5%
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Slide 19: Limited Competition
• Best Financed • Only One w/ Full Suite of Services • Once in a Lifetime Greenfield Opportunity MoM is: Limited Competition MoM is at least 3x Largest Competitor • Beam Money (P) Limited • Airtel Money – Not Interoperable First Mover Advantage to Money on Mobile
Slide 20: MoM - Retailers
Retailers are commission sales people MoM – Retailers Calpian’s first investment Money on Mobile Retailers 20,000 40,000 60,000 80,000 100,000 120,000 140,000 118,189
Slide 21: MoM - Unique Users
MoM – Unique Users Money on Mobile Cumulative Unique Phone Number Users - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Calpian’s first investment 32,527,048
Slide 22: MoM - Volume Processed
Domestic Remittance will drive volumes higher MoM – Volume Processed Rs Volume Processed 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000 600,000,000 700,000,000 Rs 620 M About $11.1 M Calpian’s first investment
Slide 23: Compare to M-Pesa in Kenya
India is 30x Kenya in size 15 Million $18 billion $180 million/year Compare to M-Pesa in Kenya M-Pesa • First Mobile Money System • 5 years old • Domestic Remittance is majority of volume • Ubiquitous presence in Kenya M-Pesa Metrics 70% of Adults Transaction Volume 25% of GDP Net Operating Revenue
Slide 24: Investment Schedule
Investment Schedule Investment Tranche Cumulative $ Amount (USD Millions)) % Ownership of MOM March 2012 $1.25 17% May 2012 $2.5 August 2012 $3.7 December 2012 $4.1 45% Future Tranches Each Tranche March 2013 $1.2 May 2013 $1.2 August 2013 $1.2 October 2013 $1.2 Total $9.7 74% Completed Tranches
Slide 25: Summary
Summary • Calpian is well positioned to aggregate steady recurring monthly cash flows • Leading buyer in a $1B niche industry • Money on Mobile is positioned to benefit from the explosive growth in the mobile payments industry in India • Management team has significant experience in payment industry
Slide 26: Appendix
Appendix
Slide 27: Income Statement
Income Statement Revenues Residual portfolio revenues Advertising revenues Total revenues Cost of revenues Amortization of residual portfolios acquired Publishing and distribution costs Portfolio acquisition costs Portfolio servicing costs Other Total costs of revenues Gross profit ‘Operating expens
Slide 28: Balance Sheet
Balance Sheet ASSETS Cash and equivalents Other current assets Total current assets Non-current assets ted to acquisition of residuals Residual portfolios acquired, net Equity investment Deferred financing costs intangible assets acquired, at cost Total assets LIABILITIES AND SHAREHOLDERS’ EQUITY Cu
Slide 29: Capital Structure
Capital Structure Capital Structure as of Sep-30-2012 Equity Shares Common Stock 23,551,806 Warrants 2,287,393 certs price range from :00-42.00 (weighted avg ofan explne 57 years Stock Options 400,000 Weighted Avg. Diluted SABES ANB: OME 20,782,475 Shares Outstanding Debt Amount Coupon Maturity Seni
Slide 30: Calpian
CALPIAN + ™ : Stop at nothing. Pay for anything. Because Your Future is Calling P any ys