161011 bih investor presentation...introduction fragmented global fx market valued at $5.1tn/day...
TRANSCRIPT
BostonInternationalHoldingsI N V E S T O R P R E S E N T A T I O NO C T O B E R 2 0 1 6
DISCLA IMERThesepresentationslides(the“Slides”)donotcompriseanadmissiondocument,listingparticularsoraprospectusrelatingtoBostonInternationalHoldingsPlc(the “Company”),donotconstituteanofferorinvitationtopurchaseorsubscribeforanysecuritiesoftheCompany(the“Securities”)andshouldnotbereliedoninconnectionwithadecisiontopurchaseorsubscribeforanysuchSecurities.TheSlidesandtheaccompanyingverbalpresentationdonotconstitutearecommendationregardinganydecisiontosellorpurchaseSecuritiesinthe Company.
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TheSlidescontainforward-lookingstatements,whichrelate,interalia,totheCompany’sproposedstrategy,plansandobjectives.Suchforward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherimportantfactorsbeyondthecontroloftheCompanythatcouldcausetheactualperformanceorachievementsoftheCompanytobemateriallydifferentfromsuchforward-lookingstatements.Accordingly,youshouldnotrelyonanyforward-lookingstatementsandtheCompanyacceptsnoobligationtodisseminateanyupdatesorrevisionstosuchforward-lookingstatements.
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TheSecuritieshavenotbeen,andwillnotbe,registeredundertheUnitedStatesSecuritiesActof1933,asamended‘theUSSecuritiesAct’)orwithanysecuritiesregulatoryauthorityofanystateorotherjurisdictionoftheUnitedStatesandmaynotbeofferedorsoldwithintheUnitedStatesorto,orfortheaccountorbenefitof,anyUSPersonasthattermisdefinedinRegulationSundertheUSSecuritiesAct.TheCompanyhasnotbeenregisteredandwillnotregisterundertheUnitedStatesInvestmentCompanyActof1940,asamended.
INTRODUCT ION
◦ FragmentedglobalFXmarketvaluedat$5.1tn/daypresentsahostofacquisitionopportunities
◦ BostonInternationalHoldings(“BIH”)isseekingtoacquirecompanieswithintheFXsectortocapitaliseontheseopportunitiesandcreateshareholdervaluebydrivingpositivechange
◦ Firstacquisitionwithin18months- followingthis,potentialforcomplementaryacquisitions
◦ StrongmanagementteamwithdeepexperienceacrossFXandFSsectors
◦ StandardlistingofSPACwillprovideplatformtoraisefundstoexecutetargetedacquisitions
EXPER IENCED MANAGEMENT
NormanRichardConnell• 10yearsworkinginstart-upenvironmentsbothinandoutof
financialservices• SeasonedregulatoryandcomplianceofficerinOTCDerivatives• Legal&ComplianceOfficerrolesatbothIFXMarketsandBoston
MerchantManagementServices
BordenJames,FounderandChairman• ManagingMemberCBFXLLC,ClarionCapitalGroupandonthe
BoardofIFXMarketsInc• FormerDirector&CFOBostonMerchantManagementServices,
Inc• FormerSeries3andSeries30licensesfromtheNationalFutures
Association.• FormerDirectorBMFNPtyLtd
RichardAllenHartheimer,Non-ExecutiveDirector• ElectronicFXtradingspecialist,developingtradingsoftwareand
providingconsultancy• +30yearcareerinFS,workedorconsultedforCiticorp,Cognotec,
Currenex,StandardCharteredBank• Expertwitnessoncasesdealingwithelectronictrading
BarbaraSpurrier,CompanySecretary• Qualifiedcertifiedaccountant(FCCA)withover35yearsfinance
experienceinnumeroussectors• Recentlysuccessfullyconcluded2IPOsand2RTOsontoLSE/AIM.• Hasbeenamainboarddirectorof4AIMlistedPlc’s,headingthe
revenuerecognitioncommitteeoftheboardforoneofthesecompanies.
UnitedKingdom,2,426
UnitedStates,1,272
Singapore, 517
HongKongSAR,437
Japan, 399
France, 181
Switzerland, 156
Australia, 135Germany, 116
ROW, 907
D A I LY F X V O L UM E S ( $ B N )
THE MARKETTheworld’sLargestfinancialmarketwith>$5tntradeddaily
Source:BISTriennialCentralBankSurvey,2016
THE OPPORTUNITY
◦ Competitionandfragmentationoverthepast20yearshascontributedtomarketevolution:◦ Innovationintechnology◦ Greatertransparency◦ Increasingvolume
◦ Recentmarketeventshaveledtoaneedforbettermanagementofriskandcompliance
◦ Increasinglycomplexregulatoryenvironment andlowerthresholdsforriskmeanthefragmented FXmarketisprimeforinvestmentandconsolidation
◦ Theproventrackrecord andexpertise ofBIH’smanagementteammeansthattheCompanyiswellpositionedtocapitaliseonthemarketopportunity
TARGET ING A L L S EGMENTS ACROSS THE FX MARKET
BIH’sseniormanagementteam’sinvesting,dealandoperatingexpertiseacrosstheFXsectorwillallowthe
Companytosourceidealtargetbusinessesandimplementitsconsolidationstrategy
Brokers MoneyServiceBusinesses
B IH BUS INESS MODEL
◦ BIHwillimplementanoperatingstrategyintheacquiredbusinesstogeneratevalueforitsShareholdersthrough:◦ Operationalimprovements◦ Potentialcomplementaryacquisitions◦ Re-admissionoftheenlargedgroup
◦ TheknowledgeandexperienceofthetheBoard,inparticularintheFX,financialservices andlegalandcompliance sectors,willcontributetotheimplementationofcompanystrategiesthatenhanceshareholdervalueandgeneratestrongreturnsforinvestors
◦ Onlylookingtoacquirehighqualitybusinessesthathaveexceptionalpotentialforgrowth andwhichoperateinjurisdictionswithsoundregulatoryenvironments
◦ Targeting retailoverthecounter(OTC)andcorporate deliverablepaymentsspace
◦ Withanacuteunderstandingoflegalandcomplianceissues,BIHwillensurediligentcorporategovernance withinthetargetcompanyandhavethecapabilitytooperatesuccessfulbusinessesinheavilyregulatedenvironments
INVESTMENT CR ITER IA
BIHwillemployaproactiveacquisitiontargetingstrategywhichidentifiespotentialacquisitioncandidatesthatmatchupwithmanagement’svalueinvestmentobjectives
◦ FocusingonretailOTCandcorporatedeliverablepaymentsspace◦ Recentunderperformancerelativetocapabilities◦ Strongcompetitiveindustryposition◦ Companywithlargepotentialforgrowth◦ Strongandexperiencedmanagementteams◦ AlthoughthemainfocusisontheFXindustry,theboardhasdiscretiontopursueothersectorsandopportunitieswithsignificantgrowthpotential
STRENGTHS OF S PAC APPROACH
BenefitstoInvestors• PE-likeinvestorapproachwithgreaterliquiditythrough
publiclytradedsecurities
• After18monthsifnoacquisitionhasbeenmadetheboardwillreviewandrecommendeithertocontinuetopursuetheacquisitionforanother12monthsortowindupanyremainingcapitaltobereturnedtoinvestors
• Alignmentofinterestthroughsponsorcapitalatriskandforfeitureandtransferrestrictionsonfounders'shares
• Accesstoincentivisedhighqualitysponsors
Benefitstotargetcompanies
• Fasttrackedlistingonarecognised stockexchange
• Privateequityinputwithoutprivateequityinfluence
• Abilitytostructurecomplextransactionstomeetseller’sspecificneeds
• Potentialforsellertoretainmajorityofupsideinstock
• Lessdisruptivetoseller/companyandemployeesthantraditionalIPO
ADMIS S ION AND USE OF PROCEEDS
Admission:◦ StandardListingwithsharestradedontheLSEMainMarket◦ ThecredibilityofbeingapubliccompanywillcontributetotheCompany’sabilitytoexpandcreditlinesandgainliquidity
Fundingrounds◦ Firstroundoffundingraised£1.4m◦ Furtherfundingislikelytoberequiredpriortotheacquisition
Useofproceeds◦ Acquiringatargetbusinessaspartofashareconsideration◦ Expensesrelatingtotheacquisition(e.g.duediligence,legalandaccountingcosts)◦ Remainingcashtobeusedforworkingcapitalpurposes
SUMMARY
Roll-upacquisition
strategygoingforward
Targetingagrowth
businessinahighgrowthmarketwithin18months
Deepunderstandingofregulation
andcompliance
issues
>$5tn/daymarketprime
forconsolidation
Strongmanagementteamwith
provenrecordinM&A