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