Slide 1: Green Dot Corporation Investor Presentation September 2012
Green Dot Corporation Investor Presentation September 2012
Slide 2: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures During this presentation, references to financial measures of Green Dot Corporation will include references to non-GAAP financial measures. For an explanation to the most directly comparable GAAP financial measures, see the Appendix to these materials or the Supplemental
Slide 3: Time to "Break Free"
Time to “Break Free” dot BIG BANKS a NO THANKS I” ree : dot
Slide 4: Green Dot is…
3 Green Dot is… A founder-led, entrepreneurial inventor of the retail prepaid debit card category (2001) and the prepaid “reload” network (2003) Led by a two-time Ernst & Young Entrepreneur of the Year ® award winner, including the 2011 National Award in the Financial Services Category A Bank
Slide 5: A large and growing market opportunity
A large and growing market opportunity 4 Unbanked Underbanked Unhappily-banked 160 million Americans Prepaid cards Reload services Checking accounts ~70 million Americans are either unbanked or underbanked, up 13% past 2yrs* •* Source: FDIC 2011 National Survey of Unbanked and Underbanked Households
Slide 6: Green Dot has the right stuff…
Installed customer base Retail distribution Reload network Vertical integration Consumer brands Green Dot has the right stuff… Active cards – 4.4 million Gross dollar volume - $17 billion 65,000 locations1 Direct relationships Highly-profitable products ~40 million cash transfers this ye
Slide 7: … to thrive in an evolving market
6 … to thrive in an evolving market We live to serve customers. All good things flow from well-served customers The century-old branch banking model doesn’t work for today’s America. Green Dot’s success is a testament to this reality Nimble Focused Customer-centric Success has brought many new
Slide 8: Achievements since our IPO
Achievements since our IPO Non-GAAP Revenue1 has grown by >$200 million to $527 million Active cards have grown by >1 million from 3.2 million to 4.4 million Gross Dollar Volume has nearly doubled to ~$17 billion Generated ~$200 million in cash flows from operations less capex >15,000 new
Slide 9: We are the #1 player in prepaid
We are the #1 player in prepaid Across the metrics, Green Dot is the leader in prepaid 1. See Appendix for reconciliation of GAAP to non-GAAP financial measures Source: Company filings and Green Dot estimates Note: Chase ATMs are as of December 2011. All other company data LTM as of June 2012. 8 Act
Slide 10: We own the industry's leading reload network
We own the industry’s leading reload network 9 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2006 2007 2008 2009 2010 2011 H1'11 H1'12 Note: Numbers for calendar years ended December 31; CAGR data from 2006 to 2011 GDOT network cash transfers Green Dot Network is a hi
Slide 11: So what changed?
reen So what changed?
Slide 12: Putting our guidance into context
Putting our guidance into context 11 New controls voluntarily introduced to enhance KYC and portfolio security New controls had an impact on approval rates and blocked cards Uncertainty reduces visibility New Risk Controls New Competition Multiple new brands at several key retailers Impact u
Slide 13: Why will Green Dot continue to grow?
Why will Green Dot continue to grow? 12
Slide 14: #1. Green Dot is a Network Model
#1. Green Dot is a Network Model With 12 years of success, ~50 million unit sales this year, the #1 brand name and 4.4 million active customers, we believe Green Dot is in a strong position to withstand attack from new “me too” competition 13
Slide 15: Existing reloading customers drive the business
Existing reloading customers drive the business * Excludes Gift card spend. ** Excludes Gift card and third party revenue on GD Network • Reloading customer drive Green Dot’s financial performance • Reloader churn is ~60% lower than non- reloaders • >60% of revs from customers >1 year old • Higher u
Slide 16: #2. Green Dot is more than just a card sold at retail
#2. Green Dot is more than just a card sold at retail We are aggressively pursuing new, potentially powerful channels of acquisition and deploying new retail programs that have the opportunity to yield material growth in 2013 15
Slide 17: Several new growth initiatives with upside potential
Several new growth initiatives with upside potential 16 0-6 months 6-12 months >12 months “Category of the Stars” New Channels Digital Government Affinity Mobile New Products Strategic M&A New channels Revenue diversification New business initiatives could represent significant upside Mobile c
Slide 18: #3. Green Dot has a robust and profitable business model
#3. Green Dot has a robust and profitable business model 17
Slide 19: Green Dot enjoys strong financial characteristics
Green Dot enjoys strong financial characteristics Positive cash flows from operations less capex every quarter since IPO Modest capital requirements, ~5% of non-GAAP revenues 18 Excess Cash Generation Solid Growth and Margins Strong Balance Sheet Non-GAAP revenue3 growth +17% YTD Adjusted EB
Slide 20: Low capital intensity and strong cash flow generation
47 70 71 0 20 40 60 80 2009 2010 2011 4% 4% 5% 0% 2% 4% 6% 8% 10% 2009 2010 2011 Low capital intensity and strong cash flow generation (%) Capex / Non-GAAP Total Operating Revenues Note: Numbers for calendar years ended December 31 $MM Cash Flows From Operations Less Capex Green Dot’s business model
Slide 21: Appendix
reen Appendix
Slide 22: Reconciliation of Non-GAAP financial measures
Reconciliation of Non-GAAP financial measures 21
Slide 23: Investor Relations Contact
Investor Relations Contact Chris Mammone 626.765.2041 cmammone@greendot.com