INVESTOR
PRESENTATION
Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment
INVESTOR PRESENTATION Global technology and value-added solutions - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment SAFE HARBOR STATEMENT Net Element, Inc. is traded on the NASDAQ Capital Market under the Dcker
Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment
www.netelement.com
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Net Element, Inc. is traded on the NASDAQ Capital Market under the Dcker symbol “NETE”
This presentaDon is for discussion purposes only. All prices and rates referenced herein are indicaDve and subject to market condiDons. The material is based upon informaDon that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. The material available in this presentaDon may contain forward-looking statements, which are subject to risks, uncertainDes and assumpDons. In some cases, you can idenDfy these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anDcipate”, “believe”, “esDmate”, “predict”, “opDmisDc”, “potenDal”, “future” or “conDnue”, the negaDve of these terms and other comparable terminology. Such forward-looking statements are based on current plans, esDmates and expectaDons and are made pursuant to the Private SecuriDes LiDgaDon Reform Act of 1995. Forward-looking statements are based
achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward- looking statements. We do not assume responsibility for the accuracy or completeness of any forward-looking statement and you should not rely on forward-looking statements as predicDons of future events. We are under no duty to update any of these forward- looking statements to conform them to actual results or revised expectaDons. This presentaDon contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounDng principles. Such non-GAAP financial measures include: general and administraDve expense before non-cash compensaDon expense. Management uses these non-GAAP financial measures to assess the performance of Net Element’s core
to assist investors in evaluaDng Net Element’s operaDng results. These non-GAAP financial measures should not be considered as a subsDtute for operaDng results determined in accordance with GAAP and may not be comparable to other similarly Dtled measures of
Any investment in Net Element will be subject to certain risks related to the nature of the Company’s business and the structure and
described in the Company’s filings with the SEC.
www.netelement.com
NET ELEMENT OVERVIEW
technology and value-added soluDons group
acceptance, processing, support, authorizaDon and se\lement services for tradiDonal, mobile and alternaDve payments in a mulD-channel environment
management and tokenizaDon technologies
framework for a number of value-added payment services
TOTAL VOLUME TOTAL TRANSACTIONS ONLINE USERS
$2.8
BILLION
154
MILLION
20+
MILLION
KEY STATISTICS - 2017
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LARGE & GROWING INDUSTRY
steadily increased over the past then years and conDnues to climb RECURRING REVENUE BUSINESS MODEL
RESILIENT OPERATING LEVERAGE
base and good visibility
deployment, acDvaDon, client services, data entry and retenDon
PROVEN MANAGEMENT TEAM
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POSITION FOR GROWTH
FOCUS ON VALUE-ADDED RELATIONSHIPS
ACQUISITION OF ONLINE PAYMENT PLATFORM
OPERATIONAL OPTIMIZATION
FOCUS ON MOBILE PAYMENTS AND VALUE-ADDED TECHNOLOGIES
2017 2016 2015 2014 2013
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We focus on maximizing opportuniDes for our brands. Our vision is to set the standard for global cross-channel payments acceptance and value-added service offerings with focus on creaDon of unified global transacDon acceptance ecosystem
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SalesCentral
One of the leading providers
soluDons in the United States All the features and building blocks to make global commerce a reality Visual POS soluDon includes all that the business needs to streamline operaDons Seamlessly redefine and modernize experience at the POS and behind the scenes No fees. Merchants get the full purchase price for the transacDon Enterprise-class infrastructure tools for back-office processing Our technology development team brings ideas to life Payment acceptance without
Allow users to make purchases by charging payments to their mobile phone bill
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OLEG FIRER
Chief ExecuDve Officer, Director
STEVEN WOLBERG
Chief Legal Officer
JONATHAN NEW
Chief Financial Officer
ANDREY KROTOV
Chief Technical Officer
DAYAN MARTINEZ
Investor RelaDons
VLAD SADOVSKIY
Head of Integrated Payments
ALEXANDER BORISOV
Head of Online SoluDons
SHAWN BROWN
Head of Risk Management
GIOVANNI DI FEBO
Head of Acquiring & Compliance
CHRISTA SHOOK
Partner Growth
KENES RAKISHEV
Chairman Noted global industrialist
DREW FREEMAN
Director 30+ yrs payments experience
HOWARD ASH
Director international value-added specialist
JON NAJARIAN
Director CNBC cast member “Hallime Report”
JAMES CAAN
Director accomplished actor & director
EXECUTIVE MANAGEMENT TEAM EXPERIENCE
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BUSINESS LINE MANAGEMENT BOARD OF DIRECTORS
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For the five-year period ending December 31, 2017, Net Element has executed several complex iniDaDves and conDnued to deliver double digital percentage year-over-year organic growth
223% GROWTH
Revenue growth over five-year period ending December 31, 2017
2013 2014 2015 2016 2017 $ 18.7 $ 21.2 $ 40.2 $ 54.3 $ 60.4
26.4%
2013-18 CAGR
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We have amassed a broad porholio of value added applicaDons that leverage the growth in payments to create a diverse array of recurring revenues and differenDate us in the marketplace. Recurring service revenue is the primary revenue component for the Company
RECURRING REVENUE TRANSACTION PROCESSING DATA & ANALYTICS SOFTWARE LICENSE
TRANSACTION PROCESSING SOFTWARE LICENSE DATA & ANALYTICS Fees charged on per transacDon and processed volume basis for the payment acceptance services provided to the merchant Solware as a license (SaaS) model allows merchants to get point-
upfront capital expenditure Business Intelligence tools are priced based on
charged over volume processed, analyzed and presented
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The global payments industry conDnues to deliver healthy growth, with underlying fundamentals such as transacDon volumes and account balances demonstraDng even greater strength. This scenario also lays the groundwork for significant disrupDon likely to alter the dynamics between financial insDtuDons and fintechs.
Asia-Pacific EMEA LATAM North America 2013 2014 2015 2016 2021E 0.4 0.4 0.4 0.4 0.5 0.1 0.1 0.1 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.6 0.7 0.7 0.7 1.1 2014 2016 2019E 1,336 1,915 3,418 392 620 1,080 Mobile Payments Online Commerce
28% 30% 32% 34% 36%
Share of total banking, %
CAGR % 2016-21
+8% +4% +9% +6% Payments revenue $ trillions Volume $ billions 1,728 2,535 4,498 1.3 1.4 1.5 1.6 2.2 Source: McKinsey Global Payments Map Source: Sta^sta, TrendForce
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Extensive network of over 100 independent sales groups and agents, including integrators, value- added resellers, affinity and referral partners boost Company’s merchant growth
2013 2014 2015 2016 2017
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Internal Sales Force focused on target verDcally and value-added services External Partners enable rapid scalability and expansion through indirect distribuDon Value-Added Resellers and Integrators focus on technology and synergeDc sales
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innovaCve technology under the trusted bank brand
channel
FINANCIAL INSTITUTIONS
mobile commerce soluCons including DCB, one-click, PSMS, WAP, A2P/P2A and PIN submit
consumer engagement
any device worldwide
enhanced security
program allowing consumers to earn points across all devices
CONSUMERS
with consumers
relaConship
soluCon (“Payment as a Service”)
MERCHANTS
POS Solutions Mobile Payments Value-Add Offerings Payment Acceptance Big Data/Analytics
100+
PAYMENT OPTIONS WITH 1 Integration API 1 Back Office 1 Settlement 1 Dedicated Team
MULTI-CHANNEL PROCESSING
MOBILE NETWORK OPERATORS
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INTERNATIONAL MERCHANTS MOBILE NETWORK OPERATORS FINANCIAL INSTITUTIONS
S
At Net Element we are commi\ed to finding the most innovaDve and impachul strategic partnership ideas, no ma\er where they reside
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Card Processing Electronic Commerce Mobile Commerce Gift Cards Alternative Payments Marketing Security & Risk Management Customer Service Mobile Payments Advisory Bill Payments Business Analytics Reporting Tools
Integration Loyalty / Rewards Point of Sale
COMPREHENSIVE SOLUTION SET DISTRIBUTION
INTERNAL SALES FORCE EXTERNAL PARTNERS 1 2
in North America, Europe, CIS and Asia
INTEGRATED TECHNOLOGY PLATFORM
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15 www.netelement.com SIMPLE INTEGRATION
Offers merchants cryptocurrency payments acceptance with secure and simple API
BLOCKCHAIN ECOSYSTEM
Netevia’s “Via Protocol” will empower everyone to create decentralized customized payment products, loyalty programs and more
ACCEPT CRYPTOCURRENCY
Make it easy for the merchant to start accepting cryptocurrency in a multi- channel environment, without having to pay high fees
24/7 SUPPORT
24/7 management and support provides persistent monitoring to keep processing safe and protected
ENCHANCED SECURITY
Security of the protocol lies in the transaction blockchain ensuring safety with distributed ledger
MULTI WALLETS
Payments for users that store private keys both online and in hardware devices
MEMBER OF
(Coming Soon)
www.netelement.com
Global technology and value-added solutions group that supports electronic payments acceptance in a multi-channel environment
investors@netelement.com https://www.linkedin.com/company/net-element/ https://www.facebook.com/netelement https://twitter.com/neteinc +1 (305) 507-8808 www.netelement.com