Slide 1: Leader in Cashless Transactions, Networked Services, and Energy Management
A Leader in Cashless Transactions, Networked Services, and Energy Management Creating Value Through Innovation July 22, 2008
Slide 2: Forward Looking Statement
With the exception of the historical information contained in this presentation, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to the ability of the
Slide 3: Significant Market Opportunity
Significant Market Opportunity USAT believes that it has a significant opportunity to penetrate several large markets, particularly the vending market.
Slide 4: Investment Highlights
Significant Market Opportunity - Vending industry and other unattended markets are large, global and underpenetrated Market is Positioned for Rapid Growth - Driven by technology improvements, consumer demand, improvements in payment card regulations, and vending industry dynamics Market Leader - - U
Slide 5: ePort for Cashless Vending
ePort® for Cashless Vending • Enables cashless payments including credit/debit • Designed for rapid retrofit - 10 minutes or less • Instantly on network • Turnkey wireless connection • Provides operators with online access to sales data • Multiple forms of cashless payment including credit/debit car
Slide 6: ePort Connect: One-stop Payment Processing System
ePort A TECHNOLOGIES Merchant Services (« )) Online reporting and settlement Networking and Communications Cc O N N E C T Your One-stop Payment ae, Processing System =“, Technology support and Electronic transfer of funds customer help desk
Slide 7: Web-Based Reporting for Distributed Assets
Web-Based Reporting for Distributed Assets
Slide 8: Web-based reporting statement screen
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Slide 9: Student ID
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Slide 10: Introduction of the ePort G7 in March 2008
Introduction of the ePort G7 in March 2008 • Wireless, cashless transaction solution • Combines traditional mag-stripe and RF payment capabilities • Ability to read USA Technologies’ PayDot™ • New look with a more robust form factor • Faster installation and activation • ePort Remote Upgrade™ capabi
Slide 11: MasterCard and Coca-Cola Bottlers Point of Sale Merchandising
MasterCard and Coca-Cola Bottlers Point of Sale Merchandising for Cashless Vending ePort® Merchandising
Slide 12: ePort merchandising partners
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Slide 13: eSuds Product Overview
eSuds™ Product Overview • Less than 1 year payback • 15% increase in sales • Insulate contracts/gain share • Hardware cost $200/unit • $2.50/month/unit network service contract per washer and dryer Customer Economics Online availability of washers and dryers Payments via student ID or PIN “Cycle Don
Slide 14: Web-Based Reporting for eSuds
Web-Based Reporting for eSuds™
Slide 15: eSuds university customers
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Slide 16: Product Overview
Product Overview • Nearly 400 units installed nationwide • Major hotel partners • Hotel Industry's Top Technology 2003 • Hotel Industry’s Overall Top Product 2003 • Minimum payments for hardware and up to 50% of revenue over minimum • Outsourced maintenance
Slide 17: Westin Chicago River North
Westin Chicago River North
Slide 18: PC Express hotel customers
PC EXPRESS: Radiasen HOTELS & RESORTS Bean & Four Seasons HOTEL Vasladeluhia in THE RITZ-CARLTON @ WYNDHAM USA TECHNOLOGIES Ss CROWNE PLAZA “VALLEY FORGE STARWOOD ay Marriott HOTELS- RESORTS - SUITES [xank v v NM ¥ WS? Sheraton
Slide 19: Unattended Kiosks
Unattended Kiosks US Kiosk Market (# of kiosks).............800,000* Worldwide Kiosk Market..................1,225,000* Kiosk Market Statistics Sony PictureStation Fantasy Photobooth USAT Kiosk Model Expenditures at kiosks expected to grow 18% in 2008** Over 1,000 kiosks currently connected to USALi
Slide 20: Cashless Terminals Installed Base by Quarter
Cashless Terminals Installed Base by Quarter
Slide 21: Energy management product overview and customer economics
® • Less than 1 year payback • Saves 40% of electric bill per unit • Average electric bill/unit ~ $300 per year • Average sales price of $90.00 • Initial market is U.S. install base of 4 million refrigerated beverage vending machines Customer Economics Product Overview Texas recently passed legislat
Slide 22: Key Industry Trends
Key Industry Trends Consumer Demand • Increased per unit revenue • Increased per transaction unit sales • Need for accurate, real-time sales data Market Sponsorship Technology Improvements • Wireless reliability up/costs down • Hardware costs continue to decline, increasing ROI of USAT solutions • M
Slide 23: Strategic Partnerships
Strategic Partnerships • Key partner in opening up small ticket markets ( e.g. vending) • GSM Contract for Customer Connections • Affordable and Reliable Access • Integration to Campus Payment System which is present on over 400 University Campuses • Vivotech’s contactless reader solution to be inte
Slide 24: Sales & Marketing Strategy
Sales & Marketing Strategy • Direct sales: 8 dedicated salespeople • Strategic co-marketing relationships • Attendance at industry conferences and events • 65 independent sales reps and resellers
Slide 25: Experienced Management Team
Experienced Management Team George R. Jensen, Jr. , Chairman and Chief Executive Officer Mr. Jensen has been the Chief Executive Officer and Director of USA Technologies since January 1992. He is the founder, and was Chairman, Director, and Chief Executive Officer of American Film Technologies, Inc.
Slide 26: Financial Snapshot
Financial Snapshot (as of 6/30/2008) NASDAQ: USAT Industry: Business Services/Technology Operations based in: Malvern, PA Shares Outstanding: 15.1 million Fully-Diluted Shares Outstanding: 17.3 million 52-Week Range: $4.50 - - $12.75 per share Average Daily Trading Volume: 80,000 shares Insider Owne
Slide 27: Total Revenue
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Slide 28: Transaction Volume by Quarter
Transaction Volume by Quarter
Slide 29: Why Invest in USA Technologies?
Why Invest in USA Technologies? • Highly motivated and experienced Management team. • Leader in cashless transaction and network services for the unattended self-serve market. • Growth by delivering extraordinary value to our customers, starting with convenience to the consumer, higher sales due to
Slide 30: USA Technologies Inc. contact details
USA Technologies Inc. (NASDAQ: USAT) Deerfield Lane, Suite 140, Malvern, PA 19355 phone: 800.633.0340 • fax: 610.989.0344 www.usatech.com George R. Jensen, Jr. Chairman and CEO gjensen@usatech.com Stephen P. Herbert President and COO sherbert@usatech.com