MOBI724 Global Solutions Rapidly Growing Global FinTech Provider for Issuers and Card-Processing Networks and Retailers

Transcription

1 OTCQB: MOBIF MOBI724 Global Solutions Rapidly Growing Global FinTech Provider for Issuers and Card-Processing Networks and Retailers Corporate Presentation October

2 Disclaimer & Forward-Looking Statements Disclaimer: The information contained herein has been issued by Mobi724 Global Solutions Inc. ( Mobi724 ). It has been prepared solely for informational purposes and should not be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any transaction or trading activity. The contents are based upon or derived from information generally believed to be reliable although no representation is made that it is accurate or complete and Mobi724 accepts no liability with regard to the reader s reliance on it. The information contained herein is not intended to be a source of advice or credit analysis with respect to the material presented, and does not constitute investment advice. Accordingly, any decision in connection with funds, instruments or transactions involving Mobi724 must be made solely on the information contained in a prospectus and no reliance is to be placed on any other representations. This document is an editorial on product and market overview. Some product features may not be applicable or available in all locations. For specific information regarding product availability and features, kindly contact mobi724.com Forward-Looking Statements: This summary contains forward-looking statements and forward looking information within the meaning of certain securities legislations ( forward-looking statements ). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as believes, expects or does not expect, is expected, anticipates or does not anticipate, or intends or stating that certain actions, events or results may, could, would, might or will be taken or achieved) are not statements of historical fact, but are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of our client (the Company ), or developments in the Company s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include disclosure regarding possible events, conditions or results of operations that are based on assumptions about future conditions, courses of action and consequences. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. The Company cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, the successful commercialization of our technology, comments about potential future revenues, joint development agreements and expectations of signed contracts with customers etc. A variety of inherent risks, uncertainties and factors, many of which are beyond the Company s control, affect the operations, performance and results of the Company and its business, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. Some of these risks and uncertainties include the risk of not securing required capital in future, the risks of not successfully concluding agreements with potential partners on a timely basis, the risks associated with commercializing and bringing to market the Company s technology. These risks are affected by numerous factors beyond the Company's control: the existence of present and possible future government regulation, the significant and increasing competition that exists in the Company's business sector, uncertainty of revenues, markets and profitability, as well as those other factors discussed in this summary presentation. This list is not exhaustive of the factors that may affect any of the Company s forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities law. 2

3 Company Overview Mobi724 Global Solutions provides loyalty reward points and offers redemptions & intelligent digital marketing solutions for banks and merchants delivered through a consumer s debit or credit card. Headquartered in Montreal, Canada. The company has 50+ employees in Canada, USA, Argentina, Colombia and the Philippines. Over 200 customers in 20 countries on 3 continents, including blue-chip companies. Visa Partnership since Q4/2017 drives customer acquisition and geographic expansion. Leading indicator of growth: achieved an estimate of 16.2M cards under management in Q2-2018, doubled in just two quarters from 8M in Q4/2017. Listed on the and OTCQB: MOBIF. Innovative and dedicated management team lead by Marcel Vienneau. 3

4 We enable loyalty reward points & offers redemption on any payment card Pay with a Debit/Credit Card Collect Points Select Rewards or Offers Wait for delivery of items or gift cards Receive Rewards and Offers Pay with a Debit/Credit Card Collect Points Select/Get Rewards or Offers Redeem Relevant Rewards or Offers Receive Relevant Cross- Promotion CHALLENGE SOLUTION Negative Customer Experience Consumers have to wait to receive their redemption Complicated rewards redemption experience Exorbitant Fulfillment Cost Companies spend $3-15/transaction in logistics to administer the delivery of the reward Real -Time Seamless Delivery Replaces traditional prepaid cards and physical & digital coupons Bank-Driven Pay With Points Promotions Placing the delivery of rewards currency at the fingertips of cardholders Merchants Oriented Digital Campaigns Connecting the gap between online promotion and offline redemption 4

5 Mobi724 Ecosystem Disrupting US$360B in Unredeemed Loyalty Points 2 Universal Gateway for Redemption of Any Rewards Currency & Offers Anytime, Anywhere Client: Banks, Issuers Partners: Payment Processors Unlimited Destinations to Redeem Points No Integration at POS, No Training of Staff, Online, Offline 5 2 Colloquy, The Economist, Loylogic desk research, 2017,

6 Today s Loyalty Rewards Market Status 55% of customers do not know their Reward Points balance 3 Based on survey conducted by Cardlinx, The Card-Link Offers market size is estimated between US$10B and $30B 4 Only 22% of best customers are satisfied with their experience Only 25% of customers are satisfied with the level of personalization US$51B of points issued every year 1/3 are not redeemed Experience Reigns: A positive redemption experience is a long lasting driver of customer satisfaction 3 THE BATTLE FOR LOVE & LOYALTY, Bond Brand Loyalty, p.4 4 Card-Linking and O2O Industry Survey 2018, The CardLinx Association, p.6 6 6

7 Key Benefits What Mobi724 Brings to The Market To Banks, Payment Processing Networks, Merchants and Consumers 1 Increase revenue through more transactions and incremental spend 2 Reduce cost Minimal fulfillment cost to deliver offers and rewards to customers Earn Redeem Seamless redemption of rewards currency & instant cash-backs at any location 3 4 Increase loyalty & retention Linked payment card at Top-of-Wallet 5 Universally applicable & highly scalable No modifications at POS; No staff training Transform cost structure into multiple new incremental revenue streams for all parties in the ecosystem 7

8 Some Clients & Partners Banks Merchants Partners Financial partners BF BELMONT LIMITED 8

9 VISA Relationship Integration with Visa Net and co-marketing partnership o Q1/2017 Agreement to integrate with Visa offers platform VISA Market Latam America & the Caribbean (LAC) 620 financial institutions 9M merchants locations Agreements o Q3/2017 Agreement to jointly expand development of Card-Linked Offers and Loyalty Solutions to Visa s clients: merchants, acquirers and issuers in LAC region $354B payment volume 454M cards o Active participation from Visa team on executive level Status o Multiple proposals in process o Aggressive business development in a number of countries Roll-out o Live in 2018 with commercialization in process VISA Market Canada & USA 10,400+ financial institutions 9M merchants locations $3T payment volume 917M cards 62% processed transactions * Source: Visa Inc. Facts & Figures, Jan

10 Investment Highlights Payment card linked business endorsed by global brands Visa Partnership is driving customer acquisition Poised for significant revenue growth in 2019 and 2020 Entering growth phase in multiple countries On the cusp of cashflow break-even 10

11 Recurring Revenue Model Based on Monthly Fees and Transaction Volume Segment Card-link Solutions Business Intelligence & Retention Platform EMV & Mobile Payments; Cash remittance at POS Clients Banks, retailers, market place operators and merchants Fees structure Monthly fees Transaction fees Notification fees Monthly fees Notification fees Terminal sales Interchange fees Transaction fees 11

12 Capitalization Table Capitalization Table Common Stock 200,144,815 Top Shareholders Large Long Term Shareholders Convertible Debt 9,425,323 Stock Options 12,920,667 Public Float 13.00% Management & Directors Warrants 29,108, % Fully Diluted Shares Outstanding 251,597, % Insider and close associates + 40% 6.9% Revenue FY 2017 Analyst Coverage $2.87M Catalyst Research Fidelity holds convertible debentures which allow its equity ownership to increase Fidelity True North Fund 12

13 Achievements & Upcoming Catalysts The next 24 months o Financing of CAD$10.5M o Trading on TSX-V o Accelerating revenues within Visa o Agreements with Visa, CredibanCo, BancNet and HSBC o Live account in Latin America with Visa and geographic expansion o Accelerating revenues from EMV payments in Asia Pacific o Co-marketing agreement with Visa for LAC region o Live processing of EMV transactions in Philippines o Geographic expansion in LAC and North America o Trading on OTC-QB platform o 16.2M cards under management in Q2-100% increase from 2017 o Monetizing proprietary Artificial Intelligence 13

14 Mangement Team Marcel Vienneau CEO Founder Rachel Girard CFO David-Lee Beauchemin CTO Johnny Hawa COO Co-Founder Michael S. Schuck President of the USA business o 25+ years experience in payment & loyalty sectors o Top 10 Entrepreneur, MIT Sloan, Entrepreneur Foundation (Quebec) o Formerly: CEO, FideliSoft, Loyalty Solutions company; President, La Professionnelle sold to Cognicase (TSX:COG); subsequently sold to CGI (TSX:CGI) o Board of Directors, CMA (10 years) & CPA (3+ years) o BBA, Accounting, Université de Moncton; Executive Development Program, MIT Sloan o 20 years of senior management experience in Finance o Formerly: Senior Manager at Deloitte o Senior Manger financial reporting at Domtar Corporation o Controller at Orbit Technologies o 20+ years of experience in sales & marketing in the loyalty & mobile industry, successfully designed, launched and managed loyalty and marketing programs for many of the largest firms. o Formerly: Technology consultant for Rona, TD Bank, National Bank of Canada, Meloche Monnex, Lockheed Martin, and CGI. Worked with top international brands and built an extensive network of contacts in the banking, mobile & retailing industry o 20+ years of experience in the Telecom industry working closely with customers to introduce profitable solutions o Formerly: Head of Sales Multimedia & SI Ericsson Latin America o Large international experience, covering multiple continents, building the right structure and organizations and establishing partnerships and commercial relationships o B.Eng. - Computer & Communications, MSc- Telecommunications Software o 35+ years of experience in leadership positions, 18 years as Senior Executive with MBNA (now Bank of America) o Formerly: Head of Sales and Financial Institutions, white labelling for 2,000+ banks and credit unions o Founded Omnico Solutions in 2005 o BBA, Accounting; MBA, Finance Jorge Sierra CSO o Member of the Board of Directors; Chairman of Business Development Committee o Represents The Quam Group for Latin America (infrastructure financing) o Formerly: Senior executive from Scotiabank, National Bank, M &A, Sales. Extensive International experience in Chile, Panama, Puerto Rico, Colombia and Canada. 14

15 Board of Directors Stéphane Boisvert Chairman Jacques Côté Chairman Audit Committee Georges Morin Allan Rosenhek Chairman IT / IP / PCI Committee o Managing Director for Canada and Latin America for Pivotal Inc. in partnership with Microsoft Cloud o Former EVP & President of Bell Business Markets; Global SVP client solutions at Sun Microsystems; GM for IBM o Canada s Top 40 Under 40 in 2000 o Director and Board Member of the Chartered Professional Accountant of Canada (CPA Canada) o Former CFO and Special Advisor for the Canadian Space Agency o Founder of Cossette Communications Group o Former Director of ImmerVision, Humanware and numerous other companies o Founder of Enstream o Former President & CEO of KnowledgeWhere; VP Glentel USA Simon Dupere Jorge Sierra Chairman Business Development Committee CSO Vincent Hogue Chairman HR Committee o President of Catsima, a holding company which owns various enterprises o Former President of Lab Crysothile o Represents The Quam Group for Latin America (infrastructure financing) o Former senior executive from Scotiabank, National Bank, M &A, Sales. Extensive International experience in Chile, Panama, Puerto Rico, Colombia, Canada. o Former Senior executive of Desjardins, TD Water House, Fidelity, on board of directors of IIROC 15

16 Annex: A Bank Driven Pay With Points Promotions Placing the delivery of rewards currency at the fingertips of card-holders Pay With Points Solution User makes purchase at POS User receives notification on mobile User selects to Pay With Points User receives redemption confirmation Points balance adjusted & statement credit issued Cross-offer is promoted Add transactions & additional revenues on payment cards, reduce fulfilment cost, real time personalized messages to card-holders 16

17 Annex: A Replacing Conventional Prepaid or Gift-Card Seamless user experience for all parties of the ecosystem Points4Voucher Solution User converts points for a voucher User receives notification on mobile User makes purchase at POS User receives redemption confirmation Points balance adjusted & statement credit issued Cross-offer is promoted Transform conventional voucher or gift card into digital, payment card linked format 17

18 Annex: A Merchant Oriented Digital Campaigns Connecting the gap between online marketing and payment directly at POS O2O online marketing to off-line redemption One Swipe Solution Cardholder notified that an offer is linked to his card Cardholder makes purchase at POS Cardholder receives redemption confirmation Value of the offer applied to the transaction Cross-offer is promoted Transform cost structure into new incremental revenue streams for all parties in the ecosystem 18

19 Annex: B Secondary Line of Business: EMV Payments in Philippines Enabling merchants and financial institutions to be EMV compliant Routing EMV transactions to the main debit payment acquiring network in the country BancNet Growing commercial operations Deploying ATM at POS functionality BancNet Nearly 60M active cardholders

20 Annex: C Key Metrics 1. Growing revenues: from $150K in 2014 to $2.87M in Declining burn rate: from $2.2M in Q to $0.9M in Q Cards under management: from 550K in 2014 to 16.2M in Q From 5 employees in 2014 to 50+ employees in From 1 country in 2014 to 20 countries in

21 Annex: C Key Metrics 6. Diversified revenue streams from growing portfolio of products 7. Management and Board with 150+ years of cumulative executive and entrepreneurial expertise in payments, loyalty, banking industries 8. Blue-chip global brands as clients and partners 9. Vested interest: 40%+ share float owned by management, directors, close business associates 21

22 Annex: D Mobi724 Global Solutions About the Company Transforming cost structure of logistics of delivery loyalty rewards by banks to customers into incremental revenue streams Mobi724 s opportunity is to disrupt the 25+ years old credit and debit cards loyalty reward points redemption model, combination of costly logistics, data inefficiencies and unfriendly customer experience, and transform this antiquated structure into new incremental revenue streams for banks, and a new seamless digital experience for cardholders - by leveraging our portfolio of innovative card-linked solutions. With our proven Business Intelligence (BI), and Artificial Intelligence (AI) in testing mode we will enable banks to monetize data and further personalize user experience with relevant and timely offers content. Mobi724 Global Solutions enables loyalty reward points and offers redemption delivered through consumer payment card, in a way that is cost-effective for banks and merchants and seamless for their customers. Mobi724 provides card issuers and retailers the ability to issue an offer linked to a payment card that can be redeemed directly at any point of sale in a seamless user experience for all parties in the ecosystem. Mobi724 creates new automated communication channels for issuers to reach out to clients in real time with relevant content; effectively converging rewards currencies redemption, communications, and marketing offers into a unique all-in-one loyalty rewards management ecosystem; creating opportunities to generate incremental revenues for issuers, payment processors, retailers and a seamless user experience for cardholders. 22

23 Thank You MOBI724 Global Solutions Inc. 257 rue Sherbrooke Est, suite 400 Montréal, QC H2X 1E3, Canada T: (+1) F: (+1) TF: (+1) TSX-V (MOS) OTC-QB (MOBIF) 23