Attached files
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| 8-K - CURRENT REPORT - MoneyOnMobile, Inc. | clpi_8k.htm |
EXHIBIT 99.1
STEADY DOMESTIC
CASHFLOW
CASHFLOW
1
EXPLOSIVE
INTERNATIONAL
GROWTH
INTERNATIONAL
GROWTH
REQUIRED STATEMENT ABOUT FORECASTS
Calpian’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.
•Money on Mobile Forecasts are the representation of MoM 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.
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.
2
THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY
SECURITIES. ANY OFFER OF SECURITIES OF THE COMPANY SHALL BE MADE ONLY TO QUALIFIED INVESTORS IN
ACCORDANCE WITH APPLICABLE SECURITIES LAWS. THE SECURITIES LAWS PROHIBIT ANY PERSON WHO HAS
MATERIAL NON-PUBLIC INFORMATION ABOUT A COMPANY FROM PURCHASING OR SELLING, DIRECTLY OR
INDIRECTLY, SECURITIES OF SUCH COMPANY.
SECURITIES. ANY OFFER OF SECURITIES OF THE COMPANY SHALL BE MADE ONLY TO QUALIFIED INVESTORS IN
ACCORDANCE WITH APPLICABLE SECURITIES LAWS. THE SECURITIES LAWS PROHIBIT ANY PERSON WHO HAS
MATERIAL NON-PUBLIC INFORMATION ABOUT A COMPANY FROM PURCHASING OR SELLING, DIRECTLY OR
INDIRECTLY, SECURITIES OF SUCH COMPANY.
KEY FACTS*
|
Trading Symbol
|
OTC BB: CLPI
|
|
Corporate Headquarters
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Dallas, TX
|
|
Stock Price (52-Week Range)
|
$1.80 ($3.25 - $1.01)
|
|
Shares Outstanding
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26.4 M
|
|
Daily Volume (90-day average)
|
3,189
|
|
Market Capitalization
|
$47.5M
|
|
Debt
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$18.6M
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|
Cash & Equivalents
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$1.543M
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Revenues (TTM)
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$10.1M
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|
Full-time Employees
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35
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Fiscal Year Ends
|
December 31
|
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Accounting Firm
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Whitley Penn LLP
|
3
* Share data as of June 30, 2013. Financial data as of June 30, 2013
CALPIAN - INVESTMENT THESIS
• Experienced leadership - 40%+ ownership
• Steady positive cash flow in US - Growing
• Explosive growth in India through Money On
Mobile - 300% growth
Mobile - 300% growth
4
Two High Growth Businesses Increasing
Shareholder Value
Shareholder Value
COMPANY OVERVIEW
Provides credit and debit card
processing services to small
retail merchants in the U.S.
processing services to small
retail merchants in the U.S.
Growth through acquiring
portfolios from Independent
Services Organizations (ISO’s).
portfolios from Independent
Services Organizations (ISO’s).
5
India based mobile payments
company that allows users to
make simple financial
transactions with their cell
phone.
company that allows users to
make simple financial
transactions with their cell
phone.
Acquired stake in March 2012
with options to purchase up to
74%.
with options to purchase up to
74%.
Calpian Commerce -
U.S. cash flow business
Money on Mobile©
Mobile Payments in India
Explosive Growth
Best of Both Worlds:
• Steady Cash Flow
• Explosive Growth
MANAGEMENT TEAM
6
Average 20 years in payments
Harold Montgomery - CEO
Stanford MBA 1985
Started in payments in 1987
Shashank Joshi - President MoM
Maharastra Institute of Technology
10 years in payments
Craig Jessen - President
SMU MBA 1984
Started in payments in 1991
David Pilotte - CFO
University of Houston MBA 1986, CPA
With Calpian since 2010
Tom Tesmer - COO Merchant Operations
University of Washington
30+ years in payments and technology operations
• Provides credit and debit card processing services to small retail
merchants in the U.S.
merchants in the U.S.
• Growth through acquiring Independent Sales/Services Organizations
(ISO’s)
(ISO’s)
7
STEADY DOMESTIC
CASHFLOW
CALPIAN, INC.
• Provides card processing to 16,000 small merchants and B2B clients
• Operates its own processing gateway - SecurePayTM
• Operates sales offices in upstate New York, Atlanta
• Top notch IT support team provides technical integration services for merchants
• Growth organically and through acquisition
8
A Low Cost Provider
Low cost processor
Low cost sales engine
Provider of technical solutions to
complex payment needs (Healthcare)
complex payment needs (Healthcare)
U.S. CORE BUSINESS: STEADY, GROWING CASH
FLOWS
FLOWS
• Acquires cash flows in the US
• Payment processing contracts
• Pay 2x-3x annual CF
• Cash Flow Positive Now
• Goal to add ~$5 million in EBITDA each year
9
• Public Comparable: Heartland Payment Systems (HPY), Vantiv (VNTV)
• Public Market Comp is 7.8x EBITDA
• Growth subject to deal flow, financing and pricing negotiations
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*Audited
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2011*
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2012*
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2013
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2014
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2015
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2016
|
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Revenue
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2.8
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3.4
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23.3
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39.2
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45.8
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51.8
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EBITDA
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0.5
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(0.4)
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2.8
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6.5
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10.4
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15.2
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* Audited
*FY 2013 and beyond objectives are not formal guidance; only to be used for informational purposes - All values in USD
• Money on Mobile is a way for consumers to pay using the cell
phone
phone
• Uses a virtual currency available at retail stores at retail stores
• Replaces the checkbook or debit card used in the U.S.
• Calpian invested in Money on Mobile March 2012
10
EXPLOSIVE GROWTH
INDIA BACKGROUND
• Population 1.2 Billion, growing to 1.6 Billion by 2030
• Middle Class = ~300 million people ($500 income/month)
• Per Capita GDP = $300 income/month
• Economy growing 6+% per year
Source: CIA.gov World Fact Book
11
CHALLENGES AND OPPORTUNITIES IN INDIA
12
Addressable Market is 750+MILLION mobile phones
1 BILLION SIM cards
The window for a fast, easy, reliable payment system is wide open.
All Cash Economy
Lack of Bank Accounts
(only 200M of 1.2B people)
No Payment Mechanisms
(credit, debit or check)
Weak Transportation
(daily errands take time)
WHAT CAN YOU BUY?
13
• Fast, easy, reliable, cheap
• HUGE value proposition vs. current methods
Allows consumers to use their mobile phone to transact:
Pre-paid Cell Phone
Utility Bill Payment
Shopping
Pre-paid Television
Ticketing
Total Combined Market ~$200 Billion +
HOW DOES MoM WORK?
14
157,860
Retailers
Transaction
Margin = 0.5%
Grows to 1%
Retailers are commission sales people
67.4
Million
Consumers
Million
Consumers
6
5
15
MoM- Retailers
16
Retailers are commission sales people
Extrapolation of current growth in yellow
MoM - Cumulative Unique Users on System
17
Extrapolation of current growth in yellow
MoM - Monthly Volume Processed
18
Volume Growth
19
|
Product
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Average Ticket
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Monthly Frequency
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Estimated Average
Monthly Spend |
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Shopping
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$1.00
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10x
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$10.00
|
|
Travel Ticketing
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$0.30-$15.00
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1x-20x
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$10.00
|
|
Total Spend/Month
|
|
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$34.00
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What will 35 million consumers do with Money on Mobile?
All numbers are estimates
We do
these
now
these
now
Money on Mobile: 10x Nearest Competitor
20
• Only One w/ Full Suite of Services
• Greenfield Opportunity
MoM is:
First Mover Advantage to Money on Mobile
|
|
Store
Count
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User
Count
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Notes
|
|
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Money on
Mobile (July ’13)
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157, 860
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67 million
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Growing
6%/month on month |
|
|
Beam Money
(May ‘13)
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50,000
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18 million
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Searching for
capital |
|
|
AirTel Money
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110,000
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Unknown
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Not
Interoperable |
|
|
Vodafone
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8,000
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Unknown
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Beginning
phase - not interoperable |
<10%
<1%
COMPARE TO M-PESA IN KENYA
21
• First Mobile Money System
• Started April 2007
• Domestic Remittance is majority of volume
• Ubiquitous presence in Kenya
India is 30x Kenya in size
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M-Pesa Metrics
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95% of Adults
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Transaction Volume
42% of GDP
|
|
Estimated Net Operating
Revenue (1.0%)
|
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Kenya
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21 Million
|
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$32.4 Billion
|
|
$320 million/year
|
M-PESA
SUMMARY
• Management team has significant experience in payment industry
• Focused on building shareholder value
• Calpian is well positioned to aggregate steady recurring monthly
cash flows in the US
cash flows in the US
• Money on Mobile growing fast in India
22
STEADY CASHFLOW
23
EXPLOSIVE GROWTH