POWERING GLOBAL COMMERCE
MANAGEMENT PRESENTATION
POWERING GLOBAL COMMERCE MANAGEMENT PRESENTATION IMPORTANT NOTICES - - PowerPoint PPT Presentation
POWERING GLOBAL COMMERCE MANAGEMENT PRESENTATION IMPORTANT NOTICES Forward-Looking Statements This presentation is for discussion purposes only. All prices and rates referenced herein are indicative and subject to market conditions. The
POWERING GLOBAL COMMERCE
MANAGEMENT PRESENTATION
IMPORTANT NOTICES
2 Forward-Looking Statements
This presentation is for discussion purposes only. All prices and rates referenced herein are indicative and subject to market
and it should not be relied upon as such. The material available in this presentation may contain forward-looking statements, which are subject to risks, uncertainties and assumptions. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “optimistic”, “potential”, “future” or “continue”, the negative of these terms and other comparable terminology. Such forward-looking statements are based on current plans, estimates and expectations and are made pursuant to the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on known and unknown risks, assumptions, uncertainties and other factors. The Company’s actual results, performance and 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 predictions of future events. We are under no duty to update any of these forward- looking statements to conform them to actual results or revised expectations. This presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include: general and administrative expense before non-cash compensation expense. Management uses these non-GAAP financial measures to assess the performance of Net Element’s core
to assist investors in evaluating Net Element’s operating results. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of
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OVERVIEW & STRATEGY
CHARTERING COURSE TOWARDS OMNI-CHANNEL PAYMENTS
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EMERGING AS A LEADER IN TRANSACTIONAL SERVICES
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added transacFonal services.
UNIFIED PAYMENTS
Provides comprehensive turnkey, payment processing solutions to SME merchants and independent agent networks across the United States
PAYONLINE
Next-generation online payments platform allows access to the safest and most reliable
experience while increasing revenue and minimizing risk for merchants
DIGITAL PROVIDER
Mobile commerce and direct carrier billing platform allows content providers to bill mobile users, including messaging, incentive programs and couponing
APTITO
Provides merchants a feature-rich, innovative and socially driven, all-in-one digital software solution for the hospitality industry
RESTOACTIVE
Adds interactive experience on to existing legacy POS system and increases bottom line with more sales, faster table turnover, improved menu management and reduced labor costs
SALESCENTRAL
Cloud-based solution provides agents and merchants an integrated toolkit to more effectively manage a variety of sales,
and accounting functions
NET LAB
Research and development center. Net Element’s Net Lab has a dedicated and cost effective team of engineers and developers located in Ekaterinburg and Moscow, Russia
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EMERGING AS A LEADER IN TRANSACTIONAL SERVICES
services
transacconal services (“VAS”)
commerce expercse, scalable mobile payments plagorm, world-class cloud infrastructure and emerging market presence
WHO IS NET ELEMENT?
clients to conduct business globally. We believe that understanding the consumer behavior and the needs of our merchants is the most effeccve and, ulcmately, the most profitable means to accomplish our mission
acceptance and value-added service offerings with focus on creacon of unified global transaccon acceptance ecosystem
OUR MISSION AND VISION WE HAVE A FOCUSED STRATEGY OUR OPPORTUNITY IS SIGNIFICANT
product offerings
payments segments
acceptance
According to Stacsta report, the worldwide mobile payment volume in 2015 was 450 billion U.S. dollars and is expected to surpass 1 trillion U.S. dollars in 2019
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POWERING GLOBAL COMMERCE
3M+
Mobile subscribers CIS
₽24.5B
Bankcard volume CIS
90M
Mobile transactions CIS
19.5M
Bankcard transactions emerging
$1B
Bankcard volume U.S.
51.5M
Bankcard transactions U.S.
$1.8B total bankcard volume processed in 2015 161M total transactions processed in 2015 71M total bankcard transactions processed in 2015 90M mobile transactions processed in 2015 14M+ total active customers in emerging markets 11M+ online payments acceptance clients in emerging 3M+ active mobile payment users in CIS
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PROVEN MANAGEMENT TEAM
Oleg Firer
Chief Executive Officer
Steven Wolberg
Chief Legal Officer
Jonatan New
Chief Financial Officer
Andrey Krotov
Chief Technology Officer
Dmitrijus Apockinas
Chief Operating Officer
Vladimir Sadovskiy
President Merchant Services
Konstantin Zaripov
CEO Net Element Russia
Mikhail Shabanov
CEO Digital Provider
Marat Abasaliev
CEO PayOnline
Kenges Rakishev
Chairman of the Board Noted global industrialist
Oleg Firer
Director CEO of Net Element
Drew Freeman
Director 30+ years experience in payments
William Healy
Director 25+ years experience in payments
Howard Ash
Nominated Director* International value-add specialist
James Caan
Director Accomplished actor and director
Board of Directors Management Team Team Experience
* subject to election on June 13, 2016
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ADDRESSING THE NEED
Attractive Growth Drivers
INCREASED
USE OF CASHLESS PAYMENTS
DIGITALIZATION
AND GLOBALIZATION
INCREASING
PROSPERITY IN EMERGING MARKETS
GROWING
NEED FOR SECURITY 8
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FOCUS ON GROWING MARKETS
tradiconal payments acceptance
market in alternacve payments and mobile payments
successfully entered and succeeded in the market
leadership posicons in selected emerging markets
alternacve payments product
purchases, mobile wallets, P2P transfers
without the need to switch acquiring bank relaconships
report, mobile payments can expand the global revenue pie from $175 billion to $250 billion, including $30 billion in emerging markets
concnued growth opportunity
allocacng addiconal ajencon to the selected emerging markets
UNDERSERVED, HIGHLY ATTRACTIVE MARKET ATTRACTIVE MERCHANT PORTFOLIO DYNAMICS LEAD TO HIGHER PROFITABILITY STRONG, GROWING FOOTPRINT Large, relatively untapped markets to become a significant focus of Net Element’s strategy, resulting in impressive growth year
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FOCUS ON 3 AREAS | OMNI-CHANNEL PROCESSING
MOBILE PAYMENTS DIRECT CARRIER BILLING POINT OF SALE SOLUTIONS PAYMENT ACCEPTANCE VALUE-ADDED TRANSACTIONS
TRINITY
PLATFORM 10
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ONE-STOP OMNI-CHANNEL PROCESSING SOLUTION
comprehensive back-office tools, mPOS, credit scoring and customer interaccon in one powerful technology
and customizacon. Our tools allow for easy integracon and our SDK toolkit for building nacve apps for our omni- channel plagorm
services are globally oriented, but adapted fro each country’s unique requirements and regulacons
MERCHANT CONSUMER
OMNI-CHANNEL PROCESSING
PAYMENT SOLUTIONS
WITH 1 Integration API 1 Back Office 1 Settlement 1 Dedicated Team
Account Payment Gateway Risk Compliance Consumer Account Card Issuing
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INTERNATIONAL REACH
KAZAKHSTAN ASIA-PACIFIC AZERBAIJAN CANADA RUSSIA KYRGYZSTAN TAJIKISTAN GCC EU UK UNITED STATES
North America Market Strategy
Target Emerging Market Strategy
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FOCUS ON GROWING MARKETS
CANADA UNITED STATES
North America
Processed 51.2 million bankcard transacFons in 2015
(45% year-over-year growth in transacFons)
$240 per annum
Features: Apple Pay; Android Pay; NFC enabled; mobile card readers; secure & reliable; 24/7 service Value-add services: shopping cart; rewards and loyalty programs; back office tools; inventory management; credit scoring; analytics Partners include top brands
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GROWTH DYNAMICS | CIS and RUSSIA (MOBILE PAYMENTS) CIS and Russian FederaFon
Processed 90 million mobile transacFons in 2015
(105% year-over-year growth in transacFons)
Features: one-click payments; premium SMS; direct operator billing; WAP automated phone; web billing; in-app billing Value-add services: content management platform; SMS gateway; API integration; short code number procurement; analytics Partners include top brands KAZAKHSTAN AZERBAIJAN RUSSIA KYRGYZSTAN TAJIKISTAN S
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Features: e-commerce gateway; e-wallet; mobile in-app payments SDK; PCI DSS level 1 security; P2P transfers Value-add services: shopping cart; rewards and loyalty; GDS’ merchant plug-in; fraud monitoring; back office tools; BIN and IP scrubbing
GROWTH DYNAMICS | EMERGING MARKETS (ONLINE PAYMENTS)
Partners include top brands KAZAKHSTAN ASIA-PACIFIC AZERBAIJAN RUSSIA KYRGYZSTAN TAJIKISTAN EU UK GCC
Emerging Markets
Processed 19.5 million mobile transacFons in 2015
(36% year-over-year growth in transacFons)
Russia are clients of PayOnline
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GROWING PORTFOLIO OF INTERNATIONAL CLIENTS
According to Forbes, 20% of leading e-commerce merchants in CIS use Net Element’s PayOnline platform to accept payment transactions in Russia, Europe and Asia 16
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FOCUS ON BIG DATA
VISUALIZATION INTERPRETATION RECOMMENDATION MERCHANT ACTION AUTO PILOT RAW DATA
Unified Payments Insights enables merchants to compare current revenue, online reputation, and social media activity to their past performance and similar businesses in their area Increased value Business performance
Revenue analysis Business monitoring Performance alerts
Support & Community
Unified experts Unified training Real-time support
Customers
Acquisition Engagement Retention
Competitor monitoring
Benchmarking Competitor alerts Customer feedback
Reputation management Social media management
And more…
Unified Payments Insights module is a merchant’s business analytics dashboard that gives our clients a 360-degree view of their business
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SALES AND MARKETING STRATEGY
INTERNAL SALES FORCE
1
EXTERNAL PARTNERS & DISTRIBUTORS
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force and market experUse
leaders
commission plaWorm
partners & distributors in North America, Eastern EU, CIS and Asia
ESTABLISHED GO TO MARKET STRATEGY STRATEGY PROOF POINTS
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GROWTH STRATEGY
$0 $20 $40 $60 $80 2013 2014 2015 2016 2017
Net Element approaches payments from a broader, holistic, global view of commerce. Our objective is to become a leader in mobile payments and value-added transactional services in emerging global markets. Pay anywhere using mobile, online or traditional card present methods.
Starts with single piece of a business
Single markecng
divescture Infrastructure stabilizaFon
exploracon
Strong partnership development
Growth Mode
Segment leadership
growth
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INNOVATION LEADERSHIP | BEST IN CLASS R&D Team
than a comparable team in the U.S.
Technology Stack
Language & Tools Web/Application Servers Mobile Platforms Cloud Databases POS Platforms Standards & Protocols
ASP .NET, ADO NET VB .NET, C# C, C++ VCC++ J2EE, Sprint, Struts, Swings, Flex Java, PHP JSP SOAP, XML, Web Services, UDDI J2ME, Objeccve C, Windows CE WebSphere Web Logic JBoss TomCat MS BizTalk, SharePoint Apple iOS Android Blackberry JDE Windows Mobile Amazon Google Apps Azure MS-SQL DB2 Oracle My-SQL SQL Lite Core Data Vertex V, MX, EVO, HFC, HSDK Telium 1&2 Unicapt PAX, Banksys BlueSDK NCR, IBM Sure POS Micros UPOS, OPOS, JavaPOS JPOS, ISO 8583, AS2830 EMV, APACS, NFC PCI-PADSS, ARTS Visa 1-2 Visa ADVT, MC-TIPS
Simplifying technology needs, to grow and success 20
PRODUCTS & SERVICES
SUITE OF PRODUCTS & SERVICES THAT MAKE US STAND ABOVE THE REST
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SUCCESS IS IN OUR HANDS
INNOVATIVE SOLUTIONS DISRUPTIVE PRODUCT OFFERINGS AGGRESSIVE SALES STRATEGY EYE ON EMERGING MARKETS
solution that supports a whole range of applications through a single robust platform, allowing global on- boarding and support for multiple payment methods. DISRUPTIVE PRODUCT OFFERINGS. Disruptive product offerings is innovation that helps create new market and value for merchants and the payments ecosystem and disrupts an existing market. AGGRESSIVE SALES STRATEGY. Through proven aggressive sales strategy we are able to put maximum money to work to achieve quick results through aggressive and innovative sales incentives. EYE ON EMERGING MARKETS. The spread of mobile technology in emerging markets is a driving catalyst behind payments. Net Element is strategically positioned to take advantage of this global trend. FOCUS ON TECHNOLOGY. Focus on payment-as-a- service model enables us to continuously develop innovative technologies and look for opportunities to incubate or acquire innovative technologies.
TECHNOLOGY
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Payment forms and ready-made checkout processes can be flexibly built upon our framework, which ensures secure transactions IN-APP PURCHASES Our Payment Platform addresses the challenge with a fully automated solution that handles everything from administration to configuration ADMINISTRATION Analytics tools put a wealth of data at your fingertips. Smooth, seamless visibility across all types of commerce BUSINESS ANALYTICS Combines e-commerce, offline POS, comprehensive back office tools, mPOS, credit scoring and customer interaction all in one powerful PaaS technology COMPLETE SOLUTION APIs and connectors allow integration and customization. Our tools allow for easy integration and
apps for Net Element platform INTEGRATION Our payment infrastructure and services are globally oriented, but adapted to each country's unique requirements GLOBAL COMMERCE
Channels Touchpoints (Technology, Device and Services)
i
In-Store
Online Interactive
Portals & APIs
Application Deployment Data Visualization
Agents/Adapters Lightweight Messaging Device Integration Data Analytics Behavioral Mapping
FRAUD LAYER
Device Finger Printing
PROCESSING LAYER Processing Services Data Collection
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OMNI-CHANNEL SHOPPING
MOBILE Search for items on mobile device and reserve chosen item at nearest store DESKTOP/ONLINE Digital cart is synched with the store database and
IN-STORE Pick up the item and use smartphone to find a coupon which is applied at checkout Omni-channel shoppers spend between 50-300% more than single shoppers. Consumers will reward a connected journey, one that is seamless regardless of where and how they pay 24
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THE FUTURE OF COMMERCE IS UNIFIED
To succeed, retailers must start from the ground up with a single commerce platform supporting all customer touch points and channels. This eliminates integration issues and supports real-time visibility, allowing the organization to work together for a unified view of the customer, inventory, fulfillment, etc. SINGLE CHANEL MULTI CHANEL OMNI CHANEL UNIFIED COMMERCE Nirvana Legacy Reality Aspiration 25
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STRONG PRESENCE THROUGHOUT VALUE CHAIN
SalesCentral
methods 50 countries served 300+ payment providers Omni-channel platform Secure PCI compliance
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We offer targeted billing solutions via Premium SMS, Direct Operator Billing, WAP automated phone, and online via credit card. All in one place. Leverage our Direct Operator connections to multiple countries. Target millions of mobile and web users around the world with Digital Provider’s global mobile billing solutions.
JOIN THE MOBILE REVOLUTION
MOBILE BILLING
We provide online billing and precise mobile billing solutions for use in m-
payments, SMS billing, WAP Billing, and other mobile payment
S
MOBILE MESSAGING
Use our ready-made solutions or your own applications for quizzes, SMS Bulk messaging and more. Messaging powered by our unique platform
MOBILE CAMPAIGNS
Mobile marketing. Our mobile campaign tools allow for the delivery of scalable mobile
campaigns with Mobile Marketing
SECURE COMMERCE
Simplifying security. End-to-end encryption
upon swipe. Tamper resistant hardware ensuring reader integrity
24/7 SERVICE
Great Service, great
is the right size for your
access to a robust reporting and support
!
Available on the
Mobile Device
!
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MOBILE POS
Unified Payments mobile POS is the easiest and cheapest way for merchants to start accepting payments through their smartphone
MOBILE PAYMENTS
Future is Mobile
Smart phones are widely expected to have a significant impact on the electronic payment industry because they fill an immediate and strong need to move everyday transactions from cumbersome cash to cards and
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ALL-IN-ONE DIGITAL POS SOLUTIONS
Ingredient of the
iPad-based POS solution includes everything that your business needs to streamline its management and
MOBILE ORDERING
Ordering on the go. Allow your customers to order directly from their mobile devices, tablet and the web. Works seamless with Aptito mPOS
DIGITAL MENUS
Bring your menus to
deployed at the POS and available for download on personal tablets to provide a self-help solution that drives sales
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ALL-IN-INE DIGITAL POS SOLUTIONS
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MANAGMENT
Manage Inventory. Allows retailers to manage their inventory quickly and accurately from anywhere. Create different products variations with simple templates
OFFLINE MODE
Always On. The need for uptime in a retail environment is paramount and as such
merchants to remain
Internet connection to the cloud is lost
BUSINESS ANALYTICS
Aptito Retail POS allows retailers to anticipate customer needs by tracking purchasing habits with customized solutions available through Unified Insights
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TRANSFORMING POS TO POINT OF INTERACTION
MOBILE MENU
Enhance the customer experience and make lasting impression with
digital menus
STAND ALONE KIOSK
Faster table turnover during peak hours. Fewer mistakes & reduced strain on staff during busy peak hours
MPOS FOR SERVERS
Servers can manage more tables and provide a higher level
true win-win
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!
Available on the
Existing POS
GLOBAL ONLINE PAYMENT SOLUTION
Enabling Global Commerce
HOSTED CHECKOUT Hosted, customizable checkout pag es that securely collect sensitive billing information. Integrate with a broad range of shopping carts RECURRING BILLING Support recurring, subscription and installment payments. Consolidate
processing on a single platform 24/7 SERVICE Our operation is the right size for your operation. Unlimited access to a robust reporting and support Unified back-office; fraud management and settlement, e- commerce and mobile in-app SDK available for single integration ONE-STOP SOLUTIONS Over 100 payment methods in 50 countries available for true global
alternative payment options THE GLOBAL COMMERCE Set customized risk preferences to control which transactions are automatically approved or declined with powerful fraud mitigation tools SECURE
PCI-DSS compliant
LEVEL 1
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THIRD-PARTY E-COMMERCE INTEGRATIONS
simplify your approach to mobile payments. Your consumers can seamlessly and securely make their purchases right from your website or a mobile application IMPLEMENTATION WITH EASE. PayOnline SDK is engineered to connect your apps and web to the new payment solution in the fastest and easiest way possible. With just a few lines of code, you are on your way PAYMENT SOFTWARE DEVELOPER KIT (SDK). Our Payment SDK helps developers integrate to the PayOnline platform by building in the required technical specifications and compliance elements, thereby reducing coding time and effort, while giving you the tools to innovate new solutions. Our SDK libraries for instant integration are available on the following technologies: .NET, PHP, Windows Universal App, Node.JS and iOS
comes to integrating systems. PayOnline makes it easy to connect to a wide range of third-party systems.
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⋆
Our customized gift cards and stored value programs can help boost your revenue
LOYALTY
Approximately 83% of consumers are part of loyalty programs. Make sure they can be part of yours by using one of
WHITE LABEL
Our sales partners turn to us for white-labeled gift and loyalty
flexible and easy to use solutions help build their portfolios
CUSTOMER APPRECIATION MADE SIMPLE
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BUSINESS ANALYTICS
Information at your fingertips. From merchant statements to online portal and dashboard, we offer comprehensive reporting solutions for merchants of all sizes MERCHANT REPORTING Information is power, we bring a proactive, convenience-oriented approach to notifying our merchants of time-sensitive reconciliation and dispute events ALERTS Chargeback system offers full cycle management, from retrievals to arbitration, all from a single interface, thus enabling faster resolution CHARGEBACK MANAGEMENT Real-time insights. Measure your credit and debit card revenue, transactions, and average purchase size over time TRANSACTIONAL DATA See what others see. Monitor your
reviews on top sites where your customers comment on your business ONLINE REPUTATION Stay in touch with your clients. Track your Facebook and Twitter activity, identify your newest fans, and see who is engaging with your social media pages SOCIAL MEDIA
MAKE SMARTER
BUSINESS DECISIONS 35
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3363 NE 163rd Street, Suite 705 North Miami Beach, FL 33160 Phone: +1 305 507 8808 Email: investors@netelement.com Web: www.netelement.com HEADQUARTERS Commonwealth Independent States European Union Russian Federation United Arab Emirates United States WORLDWIDE LOCATIONS
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