Interim results to 30 April 2017 June 2017 Presenting team John - PowerPoint PPT Presentation

Interim results to 30 April 2017 June 2017

Presenting team John Conoley James Hume Andrew Hayward Executive Chairman Chief Operating Officer Chief Financial Officer   30+ years experience across a 15+ years industry experience  Experienced finance executive variety of industry and private delivering commercial enterprise with senior strategic advisory equity roles including positions at software for telco & financial services and investor relations experience IBM, Psion and Eon.  Customer facing roles in various  Key strategic direction and  General management and director- international markets to deliver governance of the business level roles in small & medium-sized strategic & dynamic technology  Previous fundraising and M&A private and public companies. solutions advisory experience   Director of HomeSend Director of HomeSend eServGlobal | 2

Introduction On the point of significant sales expansion within HomeSend  Live transactions with KEB Hana Bank have started to flow  Advanced negotiations with larger banks  Proof of concept ongoing with traction in North America  Identified further routes to market as well – e.g. e-commerce Loan  £2.5m further loan taken from Lombard Odier Further re-structuring of the business to create a more – appropriate and long term structure – General working capital Core business  Further refinement of the core business to streamline costs  Support the return to breakeven in the short term eServGlobal | 3

Driving the digitalization of money movements by connecting the world in a way that is safe, convenient and cost-effective. International Payments JV | 4

Achievements since the last capital raise Accelerating into a maturing business  Several other banks already signed Since  One of Asia’s largest banks already sending live transactions  Improved addressable market size from a market of over $600 billion* to c.US$22 trillion** 2016  Sufficient opportunity has been generated to reach break even point fundraise  HomeSend has become the cross border capability for Mastercard Send  Contract negotiations ongoing with multiple global opportunities A fast-growing start-up Up to  Targeting Money Transfer Operators (“MTOs”) to take a commission from a market of over 2016 US$600 billion*  Huge structural progress – Payment Institution license, data centre upgrades & fundraise interconnectivity, Security (PCI), integration with Mastercard Send  Connectivity to over 1bn bank accounts, mobile wallets, etc. * Source: http://www.worldbank.org/en/research/brief/migration-and-remittances **Source: BCG Global Payments Model (2014), quoted in SIBOS 2014 session eServGlobal | 5

eServGlobal Core Business Connect to tomorrow | 6

eServGlobal | Innovative Mobile Financial Technology At a glance Global footprint  150 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 elastic deployment capabilities.  Sales Team ‘Restart’ well underway and gaining traction Legend Countries with services deployed eServGlobal | 7

Core business • Significant cost savings when PLC / Group related costs removed – these include support functions, board costs and listing costs • Demonstrable value in the medium term FY17 FY17* FY18* 1H17 14 months 12 months Actuals Forecast Forecast €M €M €M Revenue 4.1 15.0 - 19.0 15.0 - 20.0 Total Costs (7.8) (18.5) (15.0) Operating EBITDA (3.6) (3.5) - 0.5 0 – 5.0 Estimated PLC / 1.6 3.8 3.3 Group costs Adjusted EBITDA (2.0) 0.3 - 4.3 3.3 - 8.3 * eServGlobal Management Information data Total Costs excludes impact of HomeSend equity losses, WIP and debtor provisions included within the interim financial statements eServGlobal | 8

Trading update and forecast Continued streamlining of the core  Year to date total costs of for the first half are 30% (€3.4m) below the same period in 2016  Annualised costs for the second six months to October 2017 expected to be below €16.0m  Cost expectation for the 14 months period to December 2017 of c.€18.5m  FY18 costs forecast to be €15.0m - €16.0m  Diversified pipeline - over one third of the current pipeline is now from outside the Middle East concentration eServGlobal | 9

Current Trading  Restructuring of the business  Pipeline development  Timing issues due to be recovered in the second half FY17 FY16 1H17 Actual 6 months 12 months €M €M Revenue 4.1 13.5 Cost of sales (5.0)* (9.7) Gross profit (0.9) 3.8 Operating Costs (7.3)** (10.7) EBITDA (8.2) (6.9) Loss for the period (10.2) (13.6) * Includes one off adjustments of €1.4m related to WIP provisions ** Includes one off adjustment of €1.9m related to debtor provisions Interim balances translated from AUD at a AUD/Euro rate of 0.700 Prior year end balances translated from AUD at AUD/Euro rate of 0.625 eServGlobal | 10

Summary | 11

Forward outlook  HomeSend foresees significant sales expansion and expects to become profitable in the near future  HomeSend is in detailed discussions regarding larger opportunities with new partners  Board anticipates the potential value of this investment to significantly increase compared to previous expectations  Further cost cutting measures in core business being taken to bring breakeven point down  Geographical diversity of improving pipeline  At a proforma level (ie excluding PLC and Group costs) of profitability eServGlobal | 12

THANK YOU For further info: eservglobal.com/investors Subscribe to all company updates at: eservglobal.com/investors/news | 13

Appendix | 14

eServGlobal Board Members John Conoley Andrew Hayward Stephen Baldwin Tom Rowe Executive Chairman CFO & Executive Director Non-executive Director Non-executive Director     30+ years experience Experienced finance Chartered accountant with Corporate Lawyer across a variety of executive with senior 30+ yrs experience in practising in Sydney industry and private strategic advisory and business and fund with 10+ years equity roles including investor relations management including roles experience in mergers positions at IBM, Psion experience at Price Waterhouse, & acquisitions, capital and Eon. Hambro-Grantham & raising and corporate  Key strategic direction Colonial First State. governance.  General management and governance of the   and director-level roles business Extensive Board experience Holds a BA and LLB in small & medium-sized across multiple industries. (Hons) and Graduate  Previous fundraising private and public Diplomas in Applied  and M&A advisory Advisor to one of Australia’s companies. Finance and Investment experience larger superannuation funds and in Corporate  Director of HomeSend on their global private equity Governance. program. eServGlobal | 15

A business of two halves Dual-listing on Australian Securities Exchange and AIM (London Stock Exchange) JOINT VENTURE CORE BUSINESS MasterCard, eServGlobal & BICS Innovative financial technology Global payments hub enables cross- solutions for developing markets. border money transfer between mobile money accounts, payment cards, bank Mobile payments, Recharge, Data accounts or cash outlets from Analytics and Consulting. anywhere. eServGlobal has two seats on the HomeSend Board: 35% Ownership 100% Ownership John Conoley, Executive Chairman Synergy Sales James Hume, COO eServGlobal | 16

HomeSend | The Network Effect Any partner connected to the HomeSend hub offers their customer Banks MTOs access to any other connected party, including bank accounts, mobile PSP / Agents wallets, cards and digital wallets Aggregators Other E-Wallet/ Card Disbursers MNO = Mobile Network Operator Networks MTO = Money Transfer Organisation PSP = Payment Service Provider MNOs Direct HomeSend customers eServGlobal | 17

Mastercard Send. Domestic and cross border services Mastercard Send for cross border leverages HomeSend’s platform to expand global reach and capabilities A robust, innovative and cost effective solution that adds value to a Bank’s cross-border services. Single Connection, Predictable Delivery and Transparent Pricing Faster Cheaper Better Coverage in 80 countries Less expensive for payer Amount expected is the amount received Faster settlement Competitive FX Consistency enforced by network rules Quicker availability of funds No bene deduct Secure and authenticated with payments expertise Predictable timing Operational efficiencies Sending bank controls the pricing and the branding | 18

eServGlobal | Refreshed and growing product suite DIGITAL WALLET RECHARGE CROSS-BORDER SERVICES PLATFORM SERVICES PAYMENTS CONSULTING BUSINESS TELCO ACCESS ANALYTICS CHANNELS eServGlobal | 19