Mobile Money for the Unbanked Interactive Investor Presentation. Paolo Montessori

Transcription

1 Mobile Money for the Unbanked Interactive Investor Presentation Paolo Montessori

2 In the developed world, an m-commerce revolution is coming Major phone manufacturers are rolling out NFC (near field communication) chips for proxy-based payments in stores via mobile devices 2

3 but in emerging markets, over two billion people do not have access to financial services 3 Juniper Research, 2009

4 1.7 billion people without bank accounts have mobile phones 4 World Bank, GSMA, 2009

5 5 and we provide solutions that enable consumers to join the emerging mobile financial ecosystem

6 Introducing eservglobal Products and Services Two divisions: Core Business: Value-added services, recharge, mobile money HomeSend: Technology leader in mobile international remittance Value added Services Pre paid Recharge Mobile Money International Remittance Market Focus Focused on providing innovative technology adapted to emerging markets needs Over 85 customers in more than 50 countries Long-term customer relationships with operators and financial institutions Corporate Based in France, 12 offices globally, development centre in Romania Employs c.200 people, the majority in Europe Listed in Australia and the UK Partnerships with leading technology providers and operators globally 6

7 Domestic mobile money means new revenue streams, reduced churn, and more profitable prepaid airtime. Increase in revenues due to mobile money Reduction in distribution costs due to electronic recharge Reduction in customer turnover due to mobile money Monthly ARPU 7 10% increase Before After Total operator cost base Before -4% After Monthly churn (%) 4% 3% 2% 1% 0% Normal subs ~6x lower M-money users Mobile money accounted for a 10% increase in Average Revenue Per User at Safaricom and now exceeds data and SMS revenues combined 1 4% cost reduction in entire cost basis of MNO. Additional revenue stimulation estimated at ~8-10% 2 Aligning high churn (mobile) and low churn (banking) businesses reduces turnover. 3 At one operator, mobile money use has reduced churn from 4.5% monthly to 0.2% monthly Safaricom M-Pesa Experience, July September, 2009 ARPU figures from Informa Telecoms & Media (WCIS). 2. eservglobal experience, Cost base is estimated. 3. Based on Philippines Case Study, CGAP 2009; GSMA 2010.

8 International mobile transfers with HomeSend HomeSend is a mobile money transfer hub covering over 1 billion mobile subscribers, bank customers, and Money Transfer Organization users around the world. Send with HomeSend Sending money internationally is transparent and instant 24x7 Receive on Mobile Account Received funds move straight into the mobile ecosystem Money is sent from Belgium: Imane sends 100 to her brother Her brother in Morocco receives funds in local currency 8

9 International money transfer using traditional methods Qatar Current methods have limited reach and are time consuming The Philippines 9 4 hour drive to closest office At least 1 hour for international transfer 6 hour boat trip to main island

10 International money transfer using HomeSend HomeSend enables instant international transfers to anyone with a mobile. Instant and cost effective money transfer 10

11 HomeSend Customer Highlights Select Multinational Customers Anonymous 17 countries 50m subs 30 countries 407m subs 21 countries 175m subs 25 countries 250m subs 16 countries 89m subs 100 countries 135K agents 15 countries 8m subs 70 countries 40k agents Geographic Spread Middle East Americas Anonymous Europe Anonymous Africa APAC 11 Source: Company Websites

12 Recent trading Sequential improvements in revenues and costs Significant growth in customer base H1 FY2012 monthly revenues up by c.20% vs. prior reported period. Similar monthly growth expected in H2 FY2012 The most recent reporting period was marked by operational progress in growing both revenues and the pipeline of new business Gross margin improvement and opex reductions in H2 FY2012 resetting cost base after divesting Charging business to Oracle for A$107m in 2010 Estimated avg. monthly revenues GBP millions, Source: Cenkos Securities Estimated avg. monthly costs GBP millions, Source: Cenkos Securities Month Accounting Period to Oct 2011 H1 FY2012 H2 FY2012e Month Accounting Period to Oct 2011 H1 FY2012 H2 FY2012e 12 Source: Cenkos Securities Estimates

13 Newgate Threadneedle Charles Stanley Securities Cenkos Securities

14 eservglobal Disclaimer The information contained in this presentation is not financial product advice. The presentation is for information purposes and is of a general and summary nature only. eservglobal Limited gives no warranties in relation to the statements and information in this presentation. Investors should seek appropriate advice on their own objectives, financial situation and needs. This presentation contains certain statements which may constitute forward-looking statements. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, performance or achievements to differ materially from those expressed, implied or projected in any forward-looking statements. eservglobal disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Investors are cautioned that forward-looking statements are not guarantees of future performance and investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein. This presentation does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in eservglobal nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment or investment decision relating to any securities in eservglobal. Any decision regarding any proposed subscription for securities in eservglobal must be made solely on the basis of information on eservglobal that is publicly available. 14