FY2012A eServGlobal Investor Presentation (PDF)
FY2012A eServGlobal Investor Presentation (PDF)
FY2012A eServGlobal Investor Presentation (PDF)
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March 2012<br />
<strong>eServGlobal</strong> <strong>Investor</strong> <strong>Presentation</strong><br />
<strong>FY2012A</strong>
2<br />
Agenda<br />
Introduction<br />
The business & achievements to date<br />
Operations and finances<br />
Summary
3<br />
<strong>eServGlobal</strong><br />
A provider of premium software & services in high-growth markets.<br />
Large, blue chip partners<br />
Large, tier-1 customers<br />
High growth products and services<br />
Value-<br />
Added<br />
Services<br />
Recharge<br />
Mobile<br />
Money<br />
International<br />
Remittance
4<br />
Our team<br />
Chairman<br />
Richard<br />
Mathews<br />
CEO<br />
Craig<br />
Halliday<br />
CTO<br />
Paul<br />
Beesley<br />
CFO<br />
Steve<br />
Blundell<br />
Richard has over 20 years of management experience in telecommunications, software<br />
and investment. Prior to <strong>eServGlobal</strong>, he established MHB Holdings, and held the position<br />
of Managing Partner. Previous positions include Senior Vice President of J.D. Edwards<br />
and Chief Executive Officer of Mincom, Australia’s largest enterprise software company.<br />
Richard joined in May 2009.<br />
Craig Halliday has a strong record of growing businesses to achieve consistent, profitable<br />
growth. Prior to <strong>eServGlobal</strong>, Craig served as Executive President of Field Operations<br />
(COO) at Mincom, where he achieved record-breaking growth in both revenues and<br />
profitability. He has worked in the high-tech industry as an executive and investor since<br />
1996 and has held senior roles including President of PeopleSoft Japan and various<br />
management positions within J.D. Edwards. Craig joined in May 2009.<br />
Paul has over 25 years of experience in the Information Technology industry.<br />
Prior to <strong>eServGlobal</strong>, Paul held a variety of management roles at Mincom, including<br />
Executive Vice President of Research and Development.<br />
Paul has a proven track record for commercial enterprise software development, from<br />
developing large, scalable enterprise solutions to mobile applications.<br />
Paul joined in May 2009.<br />
Stephen has 20 years of experience in finance and operations and has held senior roles<br />
with leading multi-national software companies. Notable roles include EMEA Director of<br />
Finance at Adobe Systems and EMEA Vice President Commercial Operations at Siemens<br />
PLM, where he drove eight quarters of unprecedented revenue growth, exceeding<br />
competitors’ performance and the company’s own financial plans.<br />
Steve joined in November 2009.<br />
The team invested personally in <strong>eServGlobal</strong> and currently owns approx. 12%
5<br />
Our core market: mobile money for the unbanked<br />
Receiving salaries and transferring money is costly, time consuming, and even risky<br />
for much of the world’s population. Mobile money is changing this.<br />
Case Study: Domestic Money Transfers in India<br />
Source: CGAP 2011, 2010<br />
Bank Post<br />
office<br />
Accessibility 5% of<br />
population has a<br />
bank account in<br />
India<br />
Time to make<br />
transaction<br />
Time to<br />
receive funds<br />
Cost Inaccessible to<br />
most<br />
Depends<br />
on physical<br />
location<br />
Hawala<br />
courier<br />
Depends<br />
FIX on physical<br />
location<br />
Cash<br />
courier<br />
Depends<br />
on physical<br />
location<br />
Friends Mobile Money<br />
Depends on<br />
physical<br />
location<br />
150 minutes 46 minutes 48 minutes 18 minutes 23 minutes Seconds<br />
Days Days Days Days Days Seconds<br />
Risk level Low Low-<br />
Moderate<br />
High Moderate Moderate Lowest Low<br />
High High High Low<br />
Informal methods reign where current offers don’t meet needs<br />
We predict a decline in these riskier methodologies as low cost, easy to<br />
use alternatives come on the market<br />
70% of population in<br />
India has access to a<br />
mobile
6<br />
Our growth market: mobile remittances<br />
USD 65 billion in mobile transfers in 2014<br />
Today<br />
Over<br />
75% of the planet<br />
has access to a<br />
mobile<br />
Mobile technology is<br />
disrupting traditional<br />
models, which rely on<br />
fixed infrastructure &<br />
agent networks<br />
Source: World Bank 2011, Juniper Research 2011, Berg Insight<br />
2014<br />
Up to<br />
13% of formal<br />
remittances<br />
mobile<br />
Transferring<br />
USD 65 billion<br />
per annum<br />
2015<br />
Up to<br />
15% of formal<br />
remittances<br />
mobile<br />
Generating<br />
USD 6.2 billion<br />
in commissions
7<br />
Once the money is mobile,<br />
the possibilities are endless…<br />
Salary<br />
disbursement<br />
Bill payment<br />
Payment at<br />
a merchant<br />
Cash-in/cashout<br />
at agents<br />
and ATMs<br />
Domestic<br />
money transfer /<br />
International<br />
remittances
8<br />
Our products<br />
Providing premium software and services in the mobile world.<br />
B2C<br />
Infotainment<br />
Services<br />
Loyalty &<br />
Promotions<br />
Messaging &<br />
Voicemail<br />
Value-<br />
Added<br />
Services<br />
Mobile<br />
Money<br />
International<br />
Remittances<br />
Airtime<br />
Top-Up<br />
Recharge<br />
Domestic<br />
Mobile<br />
Money
9<br />
Introducing HomeSend<br />
HomeSend, a strategic partnership between <strong>eServGlobal</strong> and BICS, is a<br />
mobile money transfer hub covering over 358M mobile subscribers, bank<br />
customers, and Money Transfer Organization users around the world.<br />
Send with HomeSend Receive on Mobile Account<br />
Sending money<br />
internationally is transparent<br />
and instant 24x7<br />
Money is sent<br />
from Belgium:<br />
Imane sends<br />
€100 to her<br />
brother<br />
Received funds move straight<br />
into the mobile ecosystem<br />
Her brother<br />
in Morocco<br />
receives<br />
funds in<br />
local<br />
currency
10<br />
HomeSend Overview<br />
� HomeSend is being positioned as the leading mobile-to-mobile<br />
international remittance hub<br />
� Over the last two years we have seen outstanding growth with<br />
HomeSend:<br />
� 4 multinational groups (MTN, Qtel, Lyca, and Tranglo)<br />
� A third of a billion subscribers covered under contracts<br />
� Generating our first revenues<br />
� We are working to continue this growth trend and have announced<br />
several new contracts in the past six months<br />
� Lycamoney, one of the premier MvNO’s in Europe<br />
� mHiTS Australia<br />
� Tranglo, who has operations throughout Asia
11<br />
Clients announced over past 2 years<br />
June<br />
2010<br />
35m subs<br />
Philippines<br />
Belgium<br />
December<br />
2010<br />
50m subs<br />
United Kingdom<br />
Philippines<br />
Belgium<br />
June<br />
2011<br />
300m subs<br />
China<br />
Ghana<br />
Morocco<br />
Vietnam<br />
MTN & Qtel<br />
United Kingdom<br />
Philippines<br />
Belgium<br />
China<br />
Ghana<br />
Morocco<br />
Vietnam<br />
United Kingdom<br />
Philippines<br />
Belgium<br />
Today<br />
358m subs<br />
*Connections with operating subsidies in countries pending commercial and regulatory finalization; countries will be disclosed corridor by corridor<br />
Australia<br />
Malaysia<br />
Nepal<br />
Philippines<br />
Pakistan<br />
Qatar<br />
United Kingdom<br />
Vietnam<br />
34 add’l<br />
countries with<br />
MTN & Qtel*<br />
European<br />
coverage with<br />
Lyca*
12<br />
Shops<br />
Distributors<br />
HomeSend Business Model<br />
HomeSend makes money through a share of the end-to-end commission on<br />
transferred funds between a variety of remittance service providers.<br />
Branches<br />
ATMs<br />
MNOs<br />
Banks<br />
E-Wallet<br />
Providers<br />
Internet/Mobile<br />
Banking<br />
MTOs<br />
PSPs<br />
Merchants<br />
Agents<br />
Other<br />
Hubs<br />
HomeSend Business Model Basis<br />
1<br />
2<br />
3<br />
4<br />
Sender Cash-in<br />
Sending RSP Commission<br />
HomeSend Hub Commission<br />
5<br />
Receiving RSP Commission<br />
Receiver Cash-Out<br />
0-1%<br />
1.5%<br />
1.5%<br />
1.5%<br />
0-1%<br />
HomeSend price 4.5 – 6.5%<br />
Providing any channel, any device international remittances around the world<br />
for a lower cost than brick and mortar providers and with more reach than internet players<br />
Sample pricing: to send €50 to Morocco via Western Union, it today costs:<br />
- €8.50 (17%) in up-front fees<br />
- €1.70 (3.5%) in hidden FX fees<br />
- Service charges may be additional<br />
0.75% eSG<br />
0.75% BICS
13<br />
Our Present Focus<br />
DONE<br />
HomeSend Progress<br />
We have now signed up a critical mass of MNO receivers for HomeSend<br />
and our focus is on extending the network of senders.<br />
DONE<br />
Build the<br />
Platform<br />
Sign up MNO<br />
Receivers<br />
Get Transaction<br />
Volumes Up<br />
Drive Receiving<br />
Power:<br />
Emerging Markets<br />
Drive Sending<br />
Power:<br />
Developed Markets<br />
Sign up MNO<br />
Senders<br />
GSMA Endorsement<br />
Regulatory Compliance<br />
1st Mover Advantage, Patent Pending<br />
Pricing promotions<br />
Marketing efforts<br />
Open API’s to cash-out networks<br />
Hosted m-Wallet / agent mg’t service<br />
Eastnets (Pakistan), WafaCash (Morocco)<br />
New deal with Tranglo - high-growth MvNO<br />
MFIC partnership, Qtel Group, MTN Group<br />
Sending presence in Middle East<br />
3 Multinational Operator Groups joined<br />
Target European sending power, extend ME sending power<br />
Coverage of much of Africa and Middle East<br />
Target to extend coverage throughout Asia and LatAm<br />
Have signed a 3rd Multinational receiver (Tranglo), targeting a 4th
14<br />
Operational Progress Over the Past Two Years<br />
HomeSend<br />
Subscriber<br />
Coverage<br />
Millions<br />
Customers<br />
35<br />
50<br />
FY2010 FY2011<br />
H1<br />
1. FY2010 excludes c. 20 clients with USP products only.<br />
300<br />
FY2011<br />
H2<br />
358<br />
Today<br />
60 + 65 + 75 +<br />
82<br />
Mobile Money &<br />
Value-Added<br />
Services<br />
Customers 1
15<br />
Summary<br />
We are targeting high-growth and high-potential markets and we are<br />
investing in our capabilities in those areas<br />
We have returned A$57M to shareholders in the past year and continue<br />
to focus on delivering shareholder returns<br />
Moving into high growth markets has yielded significant customer wins<br />
o Over twenty new clients and five new domestic mobile money<br />
references since June 30 2010<br />
o Two new multinational mobile operator groups have joined<br />
HomeSend
16<br />
Disclaimer<br />
This presentation is being furnished for information purposes only and does not constitute or form part of, and should not<br />
be construed as, an offer, invitation or recommendation for the sale, purchase or issue of any shares or other securities<br />
in <strong>eServGlobal</strong> Ltd (“<strong>eServGlobal</strong>” or the “Company”) or any member of its group (the “Group”) and neither it nor any<br />
part of it shall form the basis of, or be relied upon in connection with, any investment decision, contract or commitment<br />
whatsoever.<br />
The information set out herein has not been verified by the Company or by independent agents and may be subject to<br />
amendment without notice, and such information may change materially. No representation, warranty or undertaking,<br />
express or implied, is or will be made or given by the Company, any of it subsidiaries or any of its or their directors,<br />
officers, employees, agents or advisers or any other person as to the accuracy, completeness or fairness of the<br />
information or opinions contained in this presentation and any reliance you place on them will be at your sole risk. The<br />
Company, its subsidiaries and any of its or their directors, officers, employees, agents or advisers, save with respect to<br />
any liability or fraud, expressly disclaim any and all liability which may be based on the information set out therein and<br />
any errors therein or omissions therefrom.<br />
In particular, but without limitation, any statements and projections with respect to <strong>eServGlobal</strong>’s performance contained<br />
in this presentation have been prepared on the basis of management figures arrived at as part of the Company’s normal<br />
budgetary process and reflect various assumptions, expectations, beliefs and estimates which may or may not prove to<br />
be accurate or realistic. Such statements and projections have not been verified and are not guarantees of future<br />
performance, and involve risks, uncertainties and other important factors that may cause <strong>eServGlobal</strong>’s actual results,<br />
performance or achievements to be materially different from those anticipated by such forward-looking statements and<br />
projections. Without prejudice to the foregoing, none of the Company, its subsidiaries or any of its or their directors,<br />
officers, employees, agents or advisers accept any liability whatsoever (in negligence or otherwise) for any loss<br />
howsoever arising, whether directly or indirectly, from use of this presentation or its contents or otherwise arising in<br />
connection therewith. This presentation does not constitute a recommendation regarding the securities of the Company.