clpi investor presentation
TRANSCRIPT
Presentation for
OTC: CLPI
Monday, 17th October, 2016
Monday, 17th October, 2016 HTTP://INVESTORS.MONEY-ON-MOBILE.COM 1
REQUIRED STATEMENT ABOUT FORECASTS
MoneyOnMobile’s models and projections are based on certain key assumptions, including but not limited to the following:
◦ Availability of adequate and appropriately priced financing to continue in business
◦ Availability of acquisitions which can be completed
◦ Continued performance of key staff
◦ Continued favorable business conditions and economic climate.
◦ MoneyOnMobile Forecasts are the representation of MoneyOnMobile Management.
Certain of the statements contained herein may be statements of future expectations and other forward-looking statements that are based on management‘s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words “may,”“will,”“should,”“expects,”“plans,”“intends,”“anticipates,”“believes,”“estimates,” “predicts,” “potential,” or “continue” and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) our ability to acquire retail credit card processing residual streams (“residuals”), (ii) our ability to raise capital to fund our acquisitions, (iii) our ability to successfully integrate multiple residuals acquisitions, (iv) changing levels of competition, (v) changes in laws and regulations, including government regulation of the credit card processing industry and other related financial institutions, and (vi) general competitive factors. This business plan is for confidential information purposes only and is not a solicitation for investment.
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. ANY OFFER OF SECURITIES OF THECOMPANY SHALL BE MADE ONLY TO QUALIFIED INVESTORS IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS. THE SECURITIES LAWS PROHIBIT ANY PERSONWHO HAS MATERIAL NON-PUBLIC INFORMATION ABOUT A COMPANY FROM PURCHASING OR SELLING, DIRECTLY OR INDIRECTLY, SECURITIES OF SUCHCOMPANY.
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MOBILE PAYMENT NETWORK
CashDigital Money
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HTTP://INVESTORS.MONEY-ON-MOBILE.COM
INDIA
Population: 1.3 billion people1
(4x the United States1)
Unbanked: 607 million people2
(Only 15% of adults report using an account for payments5)
Credit Cards: 20 million (0.02 per adult)3
(vs 2.5 the United Kingdom6)
Cash: 98%+ Of Transactions4
(47% in the US are Cash/Check)
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Sources: 1: Word Banks2: Word Banks’ Global Financial Inclusion Database2: Reserve Bank of India4: McKinsey; BIS, Friedrich Schneider papers5: Indian Ministry of Finance’s website for the Pradhan Mantri Jan Dhan Yojana scheme6: : RBI, World Bank, Index Mundi , EU
HTTP://INVESTORS.MONEY-ON-MOBILE.COM
LARGEST IN INDIA
#1 IN INDIA
#2 WORLDWIDE
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Based on findings from GSMA 2015 Global Adoption Survey and data from GSMA Mobile Money Intelligence
CURRENT METHOD OF PAYING BILLS
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MoneyOnMobile AGENT
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FINANCIAL TRANSACTIONS SUPPORTED
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Domestic Remittance(P2P)
Television
Travel Tickets Metro Card Recharge
eCommerce Utility Payments
Mobile AirtimeCash Collection
Insurance* Cash Out*
* In Trials
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MAKING DUMB PHONES SMART
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MOBILE PAYMENT NETWORK
Digital Money
310,676Retail Stores Enabled On
MoneyOnMobile Payment Network
Earns Revenue from MoneyOnMobile for
Assisting Consumers with Financial Transactions
173 Million Mobile Phone
Users Served to Date
Saves Consumers Time and
Money
Cash
$754 Million USD
Processed Volume Over the Trailing Twelve
Months
Data through March 31, 2016
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HTTP://INVESTORS.MONEY-ON-MOBILE.COM
THE SERVICE IN ACTION
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Agent Performing Transaction
SMS Based Transaction
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TRANSACTION FLOW
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InstructionsCash
Instructions
Confirmation
SMS Message as Receipt
Consumer Agent
Confirmation
Service Provider
HTTP://INVESTORS.MONEY-ON-MOBILE.COM
Over 300,000 Agentsin over 600 Cities
REVENUE FLOW
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Agent
Service Provider
HTTP://INVESTORS.MONEY-ON-MOBILE.COM
$8 BILLION ANNUAL MARKET
Segment Volume Projections Revenue Potential
Domestic Remittance $30 bn $0.10 bn
Bill Payment $115 bn $0.01 bn
Prepaid Mobile $38 bn $0.38 bn
eCommerce (2020 est) $300 bn $6.00 bn
Digital Television $ 5 bn $0.05 bn
Travel $ 6 bn $0.06 bn
B2B (estimate of MoM addressable) $300 bn $1.80 bn
Total $794 bn $8.41 bn
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Sources: RBI, CGAP, Gates Foundation, GSMA, PWC, Media Partners Asia, McKinsey
851m
200m
COMPETITION
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Unbanked
Banked
HTTP://INVESTORS.MONEY-ON-MOBILE.COM
Vendor Users(million)
Monthly PV(million)
Store Count Primary Focus Comments
170 $93.94 c. 315,000 UnbankedUnbanked Consumer Focus
At Scale
120 $113.64 c. 80,000 Banked
Banked Consumer Focused30 $9.09 c. 100,000 Banked
20 $68.18 c. 150,000 Banked
14 $1.40 c. 25,000 Unbanked
Subscale8 $56.00 c. 60,000 Unbanked
n.a. n.a. C 60,000 Unbanked
LOCAL MARKET PEER COMPARISON
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Sources: Companies’ Data, Financial Express
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MANAGEMENT TEAM
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Jim McKelvey
Director (USA)Co-founder of Square, one of the fastest growing technology companies in the US
Harold Montgomery
CEO (USA)Stanford University MBA, 1985Started in payments in 1987
Strategic Relationships (India)12 years of experience in payment space with Easy Bill, & FinoPaytech
Vimal Dhar
Will Dawson
EVP Mobile Money (USA)COO, MasterCard Mobile Money JV
Launched Mobile Money in Egypt & Turkey
Scott Arey
CFO (USA)Stanford University BA, 198410 years Bank of America Group CFO
Jolly Mathur
Founder and Director (India)25 years of experience building businesses including Value Added Services in the Telecom Sector
Founder and President (India)Alumni of IIM Lucknow with over 20 years of experience out of which 7 years in payment space
Ranjeet Oak
Shailesh Narang
CFO (India)Qualified Chartered Accountant since Nov 1984 with 37th Rank in All India CA Exams
Rajat Sharma
Founder and Director (India)18 years of experience in the fields of Telecom and IT. Launched Motorola’s wireless products in India
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JIM MCKELVEY: BOARD DIRECTOR
Successful
Entrepreneur
Square at a glance
Square Inc. offers digital payment services to generally unbanked merchants and has been a disruptive force in the acquiring space
IPO’ed in November 2015
Current market capitalization: USD 3.6 billion
2015 Revenue: $1.3 billion
Bringing His Experience of Creating a $3+ Billion Payments Company
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FINANCIAL EMPOWERMENT
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Kalighat Society Adds 75,000 Female Agents to Our Network
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Additional Merchant ServicesBuilding Agent Network Growing Wallet Spend
EVOLUTION OF MoneyOnMobile
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Narrow
Broad
Mobile AirtimeExp
and
ing
Ad
dre
ssab
le M
arke
t
Television
Utility Payments
Simple Products
Domestic Remittance (P2P)
Travel Tickets
eCommerce
Insurance*
More Complex Products
2011-2014 2015-2017 2017+
UPI for Face-to-Face
Working Capital Loans
Government Benefits
Digital Locker
Cash Collection
HTTP://INVESTORS.MONEY-ON-MOBILE.COM
SMS Based Transactions 65% SMS & 35% Smartphone Primarily Smartphone
PROCESSING VOLUME TREND
QUARTERLY PROCESSING VOLUMES
108% Growth in Q1 `17 Processing Volume over Q1 `16
Team Focused on Margin
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Currency conversion for Processing Volume done a constant exchange rate of 66 Indian Rupees to the US Dollar.
$43 $52 $56 $67 $108
$154
$216
$276 $224
$-
$100
$200
$300
20
15
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
16
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
17
Q1
Mill
ion
s
REVENUE TREND
QUARTERLY REVENUES IN US$
11% Growth in Q1 `17 Revenue over Q1 `16
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$0.9
$1.5$1.7$1.7$1.3$1.4$1.6
$2.0
$1.4
$0.0$0.5$1.0$1.5$2.0$2.5
Mill
ion
s
MARGIN TREND
QUARTERLY GROSS MARGIN IN US$
50% Growth in Q1`17 Revenue over Q1 `16
Q1 `17 Gross Margin was 53% up 11.7 ppts over Q1 `16
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* Q1 2017 Numbers are Unaudited
46%
38%35%
41% 41%47%
55%
41%
53%
0%
20%
40%
60%
2015Q1
2015Q2
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4
2017Q1
Harold [email protected] +1 214 837 2765
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