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

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

Feb 12, 2023 368 likes •582 views

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

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Interim results to 30 April 2017

June 2017

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Presenting team

eServGlobal

John Conoley

Executive Chairman  30+ years experience across a variety of industry and private equity roles including positions at IBM, Psion and Eon.  General management and director- level roles in small & medium-sized private and public companies.  Director of HomeSend

Andrew Hayward

Chief Financial Officer  Experienced finance executive with senior strategic advisory and investor relations experience  Key strategic direction and governance of the business  Previous fundraising and M&A advisory experience

James Hume

Chief Operating Officer  15+ years industry experience delivering commercial enterprise software for telco & financial services  Customer facing roles in various international markets to deliver strategic & dynamic technology solutions  Director of HomeSend

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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

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

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Achievements since the last capital raise

eServGlobal

* Source: http://www.worldbank.org/en/research/brief/migration-and-remittances **Source: BCG Global Payments Model (2014), quoted in SIBOS 2014 session

Accelerating into a maturing business

  • Several other banks already signed
  • 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**
  • Sufficient opportunity has been generated to reach break even point
  • HomeSend has become the cross border capability for Mastercard Send
  • Contract negotiations ongoing with multiple global opportunities

Since 2016 fundraise

A fast-growing start-up

  • Targeting Money Transfer Operators (“MTOs”) to take a commission from a market of over

US$600 billion*

  • Huge structural progress – Payment Institution license, data centre upgrades &

interconnectivity, Security (PCI), integration with Mastercard Send

  • Connectivity to over 1bn bank accounts, mobile wallets, etc.

Up to 2016 fundraise

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eServGlobal Core Business

Connect to tomorrow

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At a glance

  • 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

eServGlobal | Innovative Mobile Financial Technology

eServGlobal

Global footprint

Countries with services deployed Legend

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Core business

eServGlobal FY17 1H17 Actuals FY17* 14 months Forecast FY18* 12 months 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 / Group costs 1.6 3.8 3.3 Adjusted EBITDA (2.0) 0.3 - 4.3 3.3 - 8.3

  • Significant cost savings when PLC / Group related costs removed –

these include support functions, board costs and listing costs

  • Demonstrable value in the medium term

* eServGlobal Management Information data Total Costs excludes impact of HomeSend equity losses, WIP and debtor provisions included within the interim financial statements

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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

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  • Restructuring of the business
  • Pipeline development
  • Timing issues due to be recovered in the second half

Current Trading

eServGlobal

FY17 1H17 6 months FY16 Actual 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

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Summary

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  • 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

Forward outlook

eServGlobal

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THANK YOU

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

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Appendix

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eServGlobal Board Members

eServGlobal

John Conoley

Executive Chairman  30+ years experience across a variety of industry and private equity roles including positions at IBM, Psion and Eon.  General management and director-level roles in small & medium-sized private and public companies.  Director of HomeSend

Andrew Hayward

CFO & Executive Director  Experienced finance executive with senior strategic advisory and investor relations experience  Key strategic direction and governance of the business  Previous fundraising and M&A advisory experience

Stephen Baldwin

Non-executive Director  Chartered accountant with 30+ yrs experience in business and fund management including roles at Price Waterhouse, Hambro-Grantham & Colonial First State.  Extensive Board experience across multiple industries.  Advisor to one of Australia’s larger superannuation funds

  • n their global private equity

program.

Tom Rowe

Non-executive Director  Corporate Lawyer practising in Sydney with 10+ years experience in mergers & acquisitions, capital raising and corporate governance.  Holds a BA and LLB (Hons) and Graduate Diplomas in Applied Finance and Investment and in Corporate Governance.

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Dual-listing on Australian Securities Exchange and AIM (London Stock Exchange)

A business of two halves

eServGlobal

CORE BUSINESS Innovative financial technology solutions for developing markets. Mobile payments, Recharge, Data Analytics and Consulting. JOINT VENTURE MasterCard, eServGlobal & BICS Global payments hub enables cross- border money transfer between mobile money accounts, payment cards, bank accounts or cash outlets from anywhere.

35% Ownership 100% Ownership

Synergy Sales eServGlobal has two seats

  • n the HomeSend Board:

John Conoley, Executive Chairman James Hume, COO

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Any partner connected to the HomeSend hub offers their customer access to any other connected party, including bank accounts, mobile wallets, cards and digital wallets

HomeSend | The Network Effect

eServGlobal

MNOs

PSP / Agents Other Card Networks

Banks

E-Wallet/ Disbursers

MTOs

Aggregators

MNO = Mobile Network Operator MTO = Money Transfer Organisation PSP = Payment Service Provider Direct HomeSend customers

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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.

Mastercard Send. Domestic and cross border services

Faster

Coverage in 80 countries Faster settlement Quicker availability of funds Predictable timing

Better

Amount expected is the amount received Consistency enforced by network rules Secure and authenticated with payments expertise Sending bank controls the pricing and the branding

Cheaper

Less expensive for payer Competitive FX No bene deduct Operational efficiencies

Single Connection, Predictable Delivery and Transparent Pricing

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eServGlobal | Refreshed and growing product suite

eServGlobal

DIGITAL WALLET SERVICES CROSS-BORDER PAYMENTS BUSINESS ANALYTICS SERVICES PLATFORM RECHARGE TELCO ACCESS CHANNELS CONSULTING

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eServGlobal sells software on a traditional licence model, generating revenue from licence sales, support fees and professional services:

eServGlobal | Revenue Model

eServGlobal

Type of revenue Description New customers: Licence, professional services

  • New customer licence fee : Licensing capacity metrics include number of

subscribers, transaction traffic and number of agents or retailers

  • Implementation and integration services for new customers and upgrades for

existing customers

  • Third party hardware and software

Support / Recurring

  • Renewal rates exceed 95%+
  • Support priced at % of net licence fee

Existing customers: Licence extensions, upgrades & upsell opportunities

  • Licence upgrades generated from capacity upgrades and additional modules
  • Upgrade projects for additional modules and services
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eServGlobal | Customer life cycle

eServGlobal

A typical eServGlobal customer lifecycle includes several upsell and cross sell opportunities

REVENUE RECOGNISED ESERVGLOBAL MILESTONE Project start phase Project live Customer’s subscriber numbers double, exceeding their license Customer chooses eServGlobal for project After X years of

  • peration, the

platform needs to be upgraded As the market matures, customer wants to add new features eg. Micro Finance CUSTOMER EVENTS

         

Solution live and eServGlobal provides support as per contract