Paysafe Limited · NYSE:PSFE
Paysafe — NETELLER — Non-Deal Roadshow (2008)
31 slides from Paysafe's roadshow presentation, 2008
Slide 1: Investor Presentation: Roadshow Meetings Q1 2008
Investor Presentation Roadshow Meetings Q1 2008 Ron Martin President & Chief Executive Officer NETELLER Plc © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 1
Slide 2: Agenda
Agenda Section Page 1 Overview 3 2 Strategic vision – 2008 and beyond 7 3 US resolution 18 4 Financial summary (YTD 2007 / Q3) 20 - Key performance indicators 21 - Financial performance 25 - Cash position 28 5 Conclusion 30 © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 2
Slide 3: 1. Overview
1. Overview © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 3
Slide 4: Key strengths of the NETELLER Group
Key strengths of the NETELLER Group A global payments innovator with deep global market knowledge Unique suite of online payments solutions, trusted by consumers and merchants NetBanx - High velocity, full-service payments gateway with significant non-gaming relationships Unique risk managem
Slide 5: Business Update: Strategy
Business Update: Strategy Vision Bold payment solutions for e-commerce communities that power the efficient global movement of money Key Elements for 2008 Consumer • Revitalised Consumer Brand • Stronger Consumer Offer Merchant • Enhanced Merchant Value Proposition • Updated Business Brand
Slide 6: Business Update: 2007
Business Update: 2007 Group has performed satisfactorily in YTD 2007 Europe and Asia Pacific e-wallet growth continuing NetBanx growth consistent - significant strategic potential 2007 results expected to be in line with market expectations Stabilised business to create platform for growth
Slide 7: 2. Strategic vision – 2008 and beyond
2. Strategic vision – 2008 and beyond © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 7
Slide 8: Group Vision and Mission
Group Vision and Mission Vision “Bold payment solutions for e-commerce communities that power the efficient global movement of money” Mission 1. Establish sustainable pre-eminence in payment solutions for the e-gaming sector 2. Aggressively increase the number of active e-wallet members 3. Deliv
Slide 9: Key objectives for 2008
Key objectives for 2008 ¾ Communicating the Vision & Mission “Bold payment solutions for e-commerce communities that power the efficient global movement of money” ¾ Re-energising the ¾ Introducing the ¾ Diversification into brand portfolio and integrated payment financial services - customer interfa
Slide 10: Strategic Initiatives 2008: Pre-eminence in e-Gaming
Strategic Initiatives 2008: Pre-eminence in e-Gaming Product Enhancements: Improved deposit and withdrawal options – target markets Conversion initiatives Merchant money Other Major Account Focus Named account penetration Merchant segmentation – increase yield through “lifetime progr
Slide 11: Business model – previously…
Business model – previously… Credit/Debit Card Processing & Identity Security © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 11
Slide 12: Strategic Business Model
Strategic Business Model TransBank Distribution TransBank originated cardholders will have NETELLER wallet as their loading account Gaming Merchants TransBank will use Net+ brand for its 3rd party New debit card Debit Cards Members programs NBX & other PSP merchants recruit new NLR members Virtual D
Slide 13: Refocused Organisation
Refocused Organisation Maximising Member Opportunity …e-wallet scale… …best total merchant solution… Maximising Merchant Opportunity © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 13
Slide 14: SBU Strategy Synergies
SBU Strategy Synergies …more merchants …greater e-wallet acceptance sign up… & distribution… Marketing Co-Branding Straight Through Deposit Processing Options Best Solution $ Debit Cards Value Neteller Merchant $ MyTeller Acceptance Merchant Referral Acquisition Programs VIP programs …more members o
Slide 15: Member Services
Member Services 1. Consumer product suite: Secure online payments via e-wallets, virtual cards Prepaid debit cards Money remittance Added value packages & other financial services 2. Focus: Acquire members / drive scale Manage members • Activate • Maximise – broaden/deepen • Retain Man
Slide 16: Merchant Services
Merchant Services Merchant Services Business Unit is designed to create, drive, and maximise merchant opportunities 1.Merchant Solution Suite: 3-year vision to create “better than cards” solution for merchants Targeted to all existing and new merchants Full service solution that grows with the
Slide 17: NETELLER Senior Team
NETELLER Senior Team Dale Johnson Non-Executive Chairman Ron Martin President and CEO David Gagie Dan Starr Rohit Joshi Andy Scott Andrew Gilchrist Doug Terry Member Services Merchant Services Shared Services Fraud, Security Corporate CFO Development & IR © THE NETELLER GROUP. Proprietary and Confid
Slide 18: 3. US Resolution
3. US Resolution © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 18
Slide 19: US Resolution
US Resolution Company entered into a deferred prosecution agreement with USAO on 18 July 2007 Represents certain outcome of USAO investigation into Company and its US activities USAO agreed to defer prosecution of any federal charges as long as Company fulfils DPA conditions during 2 year term
Slide 20: 4. Financial Summary
4. Financial Summary © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 20
Slide 21: Key performance indicators
Key performance indicators © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 21
Slide 22: KPI Summary
KPI Summary Q3 2007 Q2 2007 % Q3 vs Q2 Q1 2007 % Q2 vs Q1 Active customers –total 142,153* 117,056 + 21% 385,781 -70% -ex NA 94,925 97,216 -2% 99,580 -2% Total customers -total 3,839,807 3,756,983 + 2% 3,671,724 + 2% -ex NA 895,334 815,910 +10% 737,316 +11% Average daily sign ups 900 937 -4% 1,797 -
Slide 23: Active Customer Base
Active Customer Base Active Customers 1Q 05 2Q 05 3Q 05 4Q 05 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 2Q 07 3Q 07 Asia Pacific 4,965 7,227 8,648 10,066 12,384 14,018 14,533 16,014 15,330 15,792 17,638 Europe 22,198 29,068 35,153 43,659 51,436 58,066 64,964 71,497 79,617 76,964 72,849 Rest Of World 1,002 1,432
Slide 24: Value-Based Segmentation Driving Business
Value-Based Segmentation Driving Business Segmentation Model enables NETELLER to evolve from “Mass” to “Strategic” value- based marketing and service differentiation, driving higher customer yield efficiency Quadrant 2: Stimulation Quadrant 1: Top Box/Highest Value Basic Service + some voice V
Slide 25: Financial performance
Financial performance © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 25
Slide 26: Financials: YTD Performance
Financials: YTD Performance Q3 2007 YTD 2007 YTD 2006 Total revenues $16.9m $ 67.8 m $ 185.6 m Gross margin 60% 56% 72% Profit / (loss) before tax ($145.9 m) ($170.6 m) $ 90.4 m EBITDA ($141.8 m) ($162.0 m) $98.5 m EBITDA (adjusted) (1) $0.3 m $5.7 m $98.5 m Group cash at period end $149.4 m (2) $ 1
Slide 27: Financials: Profit and Loss
Financials: Profit and Loss $ millions Q3 2007 % rev H1 2007 % rev H1 2006 % rev Revenue Transaction fees 13.5 80% 42.6 84% 110.9 93% Investment income 3.4 20% 8.2 16% 8.0 7% 16.9 100% 50.8 100% 118.9 100% Cost of sales Customer support (2.6) 16% (6.9) 14% (8.2) 7% Website maintenance (1.8) 11% (3.6
Slide 28: Financials: Cash Position
Financials: Cash Position 30 September 30 June $ millions 2007 2007 Cash and cash equivalents 125.4 137.0 Restricted cash (including EU Qualifying Liquid Assets 24.0 73.5 surplus) Cash available to Group (see below) 149.4 210.5 Customer / merchant cash held in trust accounts in 133.4 208.7 addition
Slide 29: 5. Conclusion
5. Conclusion © THE NETELLER GROUP. Proprietary and Confidential. www.netellergroup.com 29
Slide 30: Summary
Summary Business is trading in line with market expectations Closed chapter on US situation – retain healthy cash position 2008 sees launch of reinvigorated, focused business: Consumer Revitalised Consumer Brand Stronger Consumer Offer New suite of debit products Merchant Enhanced
Slide 31: Further information
Further information “Bold payment solutions for e-commerce communities that power the efficient global movement of money” For further information please contact our Investor Relations team at [email protected] Andrew Gilchrist VP – Corporate Development & Communications NETELLER Plc and