for personal use only - asx · 2017-03-12 · the shift towards completing simple and secure...

Annual General Meeting

13 March 2017

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2 AGM │ March 2017

Agenda

}  FY2016 Review

}  HomeSend Move Money Anywhere

}  eServGlobal Innovative Mobile Financial Technology

}  Outlook

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CORE BUSINESS

Innovative financial technology solutions for developing markets.

Mobile payments, Recharge, Data

Analytics and Consulting.

JOINT VENTURE MasterCard, eServGlobal & BICS

Global payments hub enables cross-

border money transfer between mobile money accounts, payment cards, bank accounts or cash outlets from anywhere.

Dual-listing on Australian Securities Exchange and AIM (London Stock Exchange)

35% Ownership 100% Ownership

Synergy Sales

eServGlobal has two seats on the HomeSend Board: John Conoley, Executive Chairman James Hume, COO

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FY2016 Review

Summary:

}  EBITDA loss of A$11.0m (€7.3m) compared to a prior year EBITDA loss of A$22.8m (€15.2m)

}  Although a decrease in revenue in the year, orders were 60% higher than the prior year

}  Capitalised technology development costs of A$1.3m (€0.9m) in respect of PayMobile 3.0 mobile money platform.

}  First channel partner signed.

}  Cash and cash equivalents at 31 October 2016 of A$9.4m (€6.5m).

}  Net cash flow used in operating activities decreased from A$15.7m (€10.7m) in FY15 to A$12.0m (€8.0m) in FY16

}  Raised A$26.2m (€17.5m) (net of expenses) through a Placing and Open Offer issuing 374.4 million ordinary shares

FY16 Full Year

FY15 Full Year

A$M A$M

Revenue 21.6 25.9

Cost of sales (15.5) (20.6)

Gross profit 6.1 5.3

Operating Costs (17.1) (28.1)

EBITDA (11.0) (22.9)

PAT (21.7) (32.4)

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HomeSend’s Vision To drive the digitalization of money movements by

connecting the world in a way that is safe, convenient and cost-effective

HomeSend is a managed service platform which facilitates the moving of money across country borders and between currencies around the world. It has an extensive network of sending and receiving customers who have

the ability once connected to the HomeSend hub to reach any other party on the distribution network

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HomeSend Strategic evolution

Up to 2016

• A fast-growing ‘start-up’ • Targeting Money Transfer Operators (“MTOs”) to take a commission from a

market of over US$600 billion • Huge structural progress – banking licence, data centre upgrades and

interconnectivity, integration with MasterCard

2017

• Accelerating into a fast-growing mature business • Expanded target market to include bank customers, now in a market of

c.US$22 trillion* • Helping disbursers pay small business and consumers on a global basis • Becoming a standard, yet exciting, part of the Mastercard offer • Now integrated with MC Send for cross border

* Source: http://www.worldbank.org/en/research/brief/migration-and-remittances **Source: BCG Global Payments Model (2014), quoted in SIBOS 2014 session

A fast-growing ‘start-up’

• Targeting Money Transfer Operators (“MTOs”) to take a commission from a market of over US$600 billion • Huge structural progress – Payment Institution license, data centre upgrades & interconnectivity, Security (PCI), integration with Mastercard Send • Connectivity to over 1BN bank accounts, mobile wallets, etc.

Accelerating into a maturing business

• Expanded target market to include bank customers, now in a market of c.US$22 trillion** • Helping disbursers pay small business and consumers on a global basis • Now integrated with Mastercard Send for cross border

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Banks • Wire transfers today are slow, expensive, lack transparency… • MC Send is designed to help banks to modernise their cross border services through a single connection • Our solution seeks to work with banks, not displace them

Disbursements •  Sharing economies require

mass payments globally •  Global outsourcing needs

global payments, e.g. freelancers

•  Mastercard Send can support reaching the consumers and businesses that need to be paid - anywhere on the planet!

Remittances •  Migrants will send over US

$600 billion home this year •  HomeSend supports:

•  Banks to move their remittance services onto mobile and / or expand their reach

•  Integrate Remittances directly into Payroll Programs

Focus on three distinct pillars F

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Mastercard Send for cross border leverages HomeSend’s platform to expand global reach and capabilities

Faster

• Coverage in 80 countries • Faster settlement • Quicker availability of funds • Predictable timing

Better

• Amount expected is the amount received • Consistency enforced by network rules • Secure and authenticated • Payments expertise • Sending bank controls the pricing and the branding

Cheaper

• Less expensive for payer • Competitive FX • No bene deduct • Operational efficiencies

Single Connection, Predictable Delivery and Transparent Pricing

A robust, innovative and cost effective solution that adds value to a Bank’s cross-border services.

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The Expansion Plan 2017 Onwards

HomeSend will continue supporting

Money Transfer Operators to offer

digital and cash based destinations in over 80

countries and are expanding MTO

participation and the destinations we can

offer them

Targeting two lucrative new segments

1.  Helping banks to modernise their cross-border services

2.  Supporting our customer’s target opportunities in cross-border disbursements (e.g. sharing economy, global outsourcing)

Accelerating Mastercard

engagement to reach Mastercard's own

customer base.

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eServGlobal: Innovative Mobile Financial Technology

Principal offices:

Office locations Countries with services deployed

Legend

}  160+ staff

}  30+ years experience

}  Global customer footprint

}  Refreshed and growing product portfolio

}  FY2016 saw the launch of new and complementary products within the landscape of digital payments.

}  ‘Channel-ready’ platform PayMobile 3

}  Signed first major channel partnership in FY2016

}  Sales Team ‘Restart’ well underway and gaining traction

}  FY2016 saw increased sales activity with a 60% increase in orders compared to the prior year

Global footprint

At a glance Installed base by product

Mobile Money

Electronic Recharge

Voucher Recharge

Telco

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eServGlobal Positioning & Competitive Advantage

Refreshed & growing product suite

Strong existing customer base in emerging market

Channel suitable product & improved

sales force

eServGlobal’s flagship PayMobile 3.0 platform

is now established.

The company now offers a suite of new and complementary products within the landscape of digital

payments and transactions.

Built on more than 30yrs experience, eServGlobal has an existing presence in fast-growing emerging

markets.

This brings stable recurring revenue plus upsell and cross sell

opportunities.

PayMobile 3.0 is the right technology to support

sales through channels and partners, allowing eServGlobal to access

markets that were previously out-of-reach.

This strategy has been

proven through the announcement of our

first major channel partnership.

Partnership with HomeSend JV

bringing synergies to core business

The HomeSend JV and partnership with

MasterCard is a key reference for

eServGlobal’s core business.

It brings important

advantages to the core business through referrals and also

through potential shared projects.

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Refreshed and growing product suite

DIGITAL WALLET SERVICES

CROSS-BORDER PAYMENTS

BIG DATA ANALYTICS

RAPID SERVICES CONNECTION

RECHARGE

TELCO & BANK CONSULTING

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Our Markets A decade of mobile financial services

Mobile financial services first started gaining traction with the launch of mPesa in Kenya in 2006. Mobile money is now available in TWO THIRDS of low and middle-income countries

In 2016, mobile money providers processed over US$269Bn in transactions.

Source: GSMA MMU, 2016 State of the Industry Report

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Our Markets The market continues to evolve and mature and the opportunity remains significant. The shift towards completing simple and secure financial services, both domestically and cross-border via the mobile phone continues at pace.

Through its full spectrum technology portfolio, eServGlobal is positioned to lead this transforming market.

Source: GSMA MMU, 2016 State of the Industry Report

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Zain Cash: Powering mobile money in Iraq

Zain Cash App

Launched Nov 2016 Already >100,000 downloads Over 60% of Zain customers

have smartphones

Digital Goods

Enables users to buy e-goods and receive them instantly on

their mobile. Can be used with iTunes, Xbox,

PlayStation, Google Store, Amazon and more

QR Code Payment

Allows any customer to pay by simply scanning

the code.

Some of the services on offer

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Aid disbursement for refugees

Zain Cash is working with NGOs to provide critical funds to refugees through their digital wallets

} ICRC Project:

}  Registered ~1,000 Refugees,

}  Disbursed ~1M USD

} UNHCR Project:

}  Registered ~2,000 Refugees,

}  Disbursing 250,000 – 500,000 USD / month

}  Expected to register up to 20,000 new individuals in 2017 For

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Service performance in first 12 months

Cash-in

Growth YOY: 25X

Domestic Transfers

Growth YOY: 34X

Top-Up

Growth YOY: 19X

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Summary

}  Clear signs of the turnaround demonstrated in the FY2016 results.

}  Key structural changes, cost reductions and cash control together with a refreshed management team point to further turnaround success in FY2017

}  HomeSend to breakeven by expanding its bank focus and extending the relationship with Mastercard

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Thank you

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Mastercard Send

Mastercard Send is a connection point which allows a company the ability to distribute cash across multiple financial end points exploiting the Mastercard network and commercial arrangements which are already in place.

The listed use cases are essentially a one to one, or one to many transaction, which is handled through a single connection to a Mastercard platform from which all elements of the processing can be carried out.

The intrinsic value is the ease of use and commercial reach which Mastercard can bring. The cross-border arm of this capability (HomeSend) offers exactly the same capability. Make one connection and send / remit / distribute money to one or many destinations available on the Mastercard network (of which HomeSend should bring the majority of end points).

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for personal use only - asx · 2017-03-12 · the shift towards completing simple and secure...

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