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| 8-K/A - FORM 8-K/A - MoneyOnMobile, Inc. | d475093d8ka.htm |
 Steady Cash Flow
Explosive Growth
Exhibit 99.1 |
 Required Statement About Forecasts
Calpian’s models and projections are based on certain key assumptions, including
but not limited to the following:
•
Availability
of
adequate
and
appropriately
priced
financing
to
continue
in
business
•
Availability of acquisitions which can be completed
•
Continued performance of key staff
•
Continued favorable business conditions and economic climate.
•
Money on Mobile Forecasts are the representation of MOM Management.
Certain
of
the
statements
contained
herein
may
be
statements
of
future
expectations
and
other
forward-looking
statements
that
are
based
on
management’s
current
views
and
assumptions
and
involve
known
and
unknown
risks
and
uncertainties
that
could
cause
actual
results,
performance
or
events
to
differ
materially
from
those
expressed
or
implied
in
such
statements.
In
addition
to
statements
which
are
forward-looking
by
reason
of
context,
the
words
“may,”
“will,”
“should,”
“expects,”
“plans,”
“intends,”
“anticipates,”
“believes,”
“estimates,”
“predicts,”
“potential,”
or
“cont
inue”
and
similar
expressions
identify
forward-looking
statements.
Actual
results,
performance
or
events
may
differ
materially
from
those
in
such
statements
due
to,
without
limitation,
(i)
our
ability
to
acquire
retail
credit
card
processing
residual
streams
(“residuals”),
(ii)
our
ability
to
raise
capital
to
fund
our
acquisitions,
(iii)
our
ability
to
successfully
integrate
multiple
residuals
acquisitions,
(iv)
changing
levels
of
competition,
(v)
changes
in
laws
and
regulations,
including
government
regulation
of
the
credit
card
processing
industry
and
other
related
financial
institutions,
and
(vi)
general
competitive
factors.
This
business
plan
is
for
confidential
information
purposes
only
and
is
not
a
solicitation
for
investment.
THIS
DOCUMENT
DOES
NOT
CONSTITUTE
AN
OFFER
TO
SELL
OR
THE
SOLICITATION
OF
AN
OFFER
TO
BUY
ANY
SECURITIES.
ANY
OFFER
OF
SECURITIES
OF
THE
COMPANY
SHALL
BE
MADE
ONLY
TO
QUALIFIED
INVESTORS
IN
ACCORDANCE
WITH
APPLICABLE
SECURITIES
LAWS.
THE
SECURITIES
LAWS
PROHIBIT
ANY
PERSON
WHO
HAS
MATERIAL
NON-PUBLIC
INFORMATION
ABOUT
A
COMPANY
FROM
PURCHASING
OR
SELLING,
DIRECTLY
OR
INDIRECTLY,
SECURITIES
OF
SUCH
COMPANY. |
 Management Team
Harold Montgomery –
CEO
Stanford MBA 1985
Started in payments in 1987
Shashank Joshi –
President MoM
Maharastra Institute of Technology
10 years in payments
Craig Jessen –
President
SMU MBA 1984
Started in payments in 1990
David Pilotte –
CFO
University of Houston MBA 1986, CPA
With Calpian since 2010
Laird Cagan –
Board of Directors
Stanford
University MBA 1985
Invested/built 30 companies, $1B of equity in companies, 10 public companies
Average 20 years in payments |
 KEY FACTS
Trading Symbol
OTC BB: CLPI
Corporate Headquarters
Dallas, TX
Stock Price (1-16-2013) (52-Week Range)
$2.50 ($3.25 -
$1.01)
Shares Outstanding (1-16-2013)
23.55M
Daily Volume (90-day average at 1-16-2013)
1,872
Market Capitalization (1-16-2013)
$58.88M
Debt (1-16-2013)
$5.68M
Cash & Equivalents (9-30-2012)
$432K
Revenues (TTM)
$3.57M
Full-time Employees (1-16-2013)
6
Fiscal Year Ends
December 31
Accounting Firm
Whitley Penn LLP |
 Calpian
–
U.S.
Cash
Flow
Business
•
Provides credit and debit card processing services to small
retail merchants in the U.S.
•
Growth through acquiring portfolios from Independent
Services Organizations (ISO’s)
•
Best of Both Worlds
•
Steady Cash Flow
•
Explosive Growth
Money
on
Mobile
–
Mobile
Payments
in
India
•
India based mobile payments company that allows users to
make simple financial transactions with their cell phone
•
Acquired stake in March 2012 with options to purchase up
to 74%
Company Overview |
       Confidential
(6)
Card Issuing Banks
(Citibank, B of A, etc.)
Consumer Card Holders
Large
Merchants
(109,500)
Independent
Sales
Organizations
(ISOs)
(10,000
in
the
US)
Super
ISOs
(<200
in
US)
Contract from processor allows
ISO to sell services to smaller
retailers.
Processors pay ISO residuals
for customer service support
functions.
Sales and
customer service
Medium-Sized Merchants
(876,000)
Medium-Sized Merchants
(876,000)
Small Merchants
(6.3 Million)
Small Merchants
(6.3 Million)
ISO ROLE IN THE PAYMENTS INDUSTRY
Calpian’s
Target
Market |
 (7)
COMPONENTS OF A PAYMENT TRANSACTION
COMPONENTS OF A PAYMENT TRANSACTION
Merchant /
Sponsoring Bank
Cardholder
Merchant Processor
Credit Card
Association Network
Cardholder’s Bank
Merchant / Retailer
Merchant Processor |
 U.S. CORE BUSINESS: STEADY, GROWING CASH FLOWS
•
Acquires cash flows in the U.S.
•
Payment processing contracts in small retail stores
•
Pay 2x-3x annual CF
•
Cash Flow Positive Now
•
Objective is to Add ~$5 million of EBITDA each year
•
Public Comparable: Heartland Payment Systems (HPY)
•
Public Market Comp is 7.8x EBITDA
•
Need 4-8 acquisitions per year, Avg $100k/month each
•
Growth subject to deal flow and pricing negotiations
2011
2012*
2013
2014
2015
Revenue
2.8
3.4
6.1
11.1
16.3
EBITDA
0.5
0.0
3.3
8.0
12.9
* Unaudited |
 2011-2012 Cumulative Investment Results
Purchase Summary
Total Cash Invested
$6,381,564
Total Stock
817,832
Total Purchase Price
$7,199,396
=========
Results
Total Cash Received
$6,185,214 (Jan 2011 to Dec 2012)
Expected IRR
35-45% (over 84 mo. Period)
•
Cash on Cash IRRs >30% |
 •
Calpian invested in Money on Mobile March, 2012
•
Money on Mobile is a way for consumers to pay using the cell phone
•
Uses a virtual currency sold at retail stores.
•
Replaces the checkbook or debit card used in the US
|
 India Background
•
Population 1.2 Billion, growing to 1.6 Billion by 2030
•
45 cities > 1 million
•
30% under age 14
•
30% urbanized/70% rural
•
Middle Class = ~300 million people ($500/month)
•
Per Capita GDP = $300/month
•
30% below the poverty line
•
Literacy =61%
•
6 language groups, 100+ dialects
•
Economy growing 6+% per year
The Next Global Growth Engine? |
 Challenges and Opportunities In India
Challenges:
•
All Cash Economy
•
Lack of Bank Accounts –
only 200M of 1.2B people
•
No Payment Mechanisms –
credit, debit or check
•
Weak Transportation –
Daily errands take time
The window for a fast, easy, reliable
payment system is wide open
Addressable
Market
is
650+MILLION
Unique
Cell
Phones |
 What Can You Buy?
Allows consumers to use their mobile phone to transact:
Pre-paid Cell Phone Pre-paid
Television Utility Bill
Payment Ticketing
Shopping
Domestic Remittance
•
Fast, easy, reliable, cheap
•
HUGE value proposition vs. current methods
•
Rural to Urban migration feeds Domestic Remittance
Total Market $200 Billion + |
 32.5
million Consumers
118,189
Retailers
Money on Mobile
Money on Mobile
6 Satellite TV 15 Cell
Providers Relatives
CASH
CASH
CASH
B to B
B to B
Transaction
Transaction
Margin =
Margin =
.5% to MOM
.5% to MOM
How
Does
MoM
Work?
B
to
B
Transaction
SMS
TEXT
INSTRUCTIONS |
 32.5
million Consumers
118,189
Retailers
Money on Mobile
Money on Mobile
6 Satellite TV 15 Cell
Providers Relatives
CASH
CASH
CASH
SMS
TEXT
INSTRUCTIONS
B to C
B to C
Transaction
Transaction
Margin =
Margin =
1.5% to
1.5% to
MOM
MOM
How
Does
MoM
Work?
B2C
Transaction |
 Retailer commission % goes down
Total $ load value from consumer more than offsets
Retailers paid Rs 10 per to load first wallet
Retailer trains customer
Consumers like the freedom:
24x7 transactions
Wide variety of uses
Shift
from
B2B
to
B2C
•
Fast Adoption
•
Up 500% in Dec ‘12 |
 Margins Increase Across Entire Product Line
•
Margins Increase 3x
•
Fast growth + Increasing Margins = Momentum
As of 12/12
Mobile Top
Up
DTH TV
Bill Pay
% Total Volume
69%
28%
3%
B2B Margin
0.5%
0.75%
0.2%
B2C Margin
1.5%
2.0%
0.5% |
   |
 Limited Competition
MoM is at least 3x Largest Competitor
•
Beam Money (P) Limited
•
Airtel Money –
Not Interoperable
First Mover Advantage to Money on Mobile
•
Best Financed
•
Only One w/ Full Suite of Services
•
Once in a Lifetime Greenfield Opportunity
MoM is: |
 MoM –
Retailers
Retailers are commission sales people
Calpian’s first
investment
Money on Mobile
Retailers
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
118,189 |
 MoM –
Unique Users
Money on Mobile
Cumulative Unique Phone Number Users
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
Apr-12
May-12
Jun-12
Jul-12
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12
Calpian’s first
investment
32,527,048 |
 MoM –
Volume Processed
Domestic Remittance will
drive volumes higher
Rs Volume Processed
0
100,000,000
200,000,000
300,000,000
400,000,000
500,000,000
600,000,000
700,000,000
Rs 620 M
About $11.1 M
Calpian’s first
investment |
 Compare to M-Pesa in Kenya
M-Pesa
•
First Mobile Money System
•
5 years old
•
Domestic Remittance is majority of volume
•
Ubiquitous presence in Kenya
India is 30x Kenya in size
M-Pesa Metrics
70% of Adults
Transaction Volume
25% of GDP
Net Operating
Revenue 1.0%
Kenya
15 Million
$18 billion
$180 million/year |
 Investment Schedule
Investment Tranche
Cumulative $ Amount
(USD Millions))
% Ownership of MOM
March 2012
$1.25
17%
May 2012
$2.5
August 2012
$3.7
December 2012
$4.1
45%
Future Tranches
Each Tranche
March 2013
$1.2
May 2013
$1.2
August 2013
$1.2
October 2013
$1.2
Total
$9.7
74%
Completed
Tranches |
 Summary
•
Calpian is well positioned to aggregate steady recurring monthly
cash flows
•
Leading buyer in a $1B niche industry
•
Money on Mobile is positioned to benefit from the explosive
growth in the mobile payments industry in India
•
Management team has significant experience in payment
industry and focused on building shareholder value
|
 Appendix |
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  Steady Cash Flow
Explosive Growth |