Ceridian Investor Conference May 2006

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Frederick Evans
5 years ago
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1 Ceridian Investor Conference May

2 Our Vision Comdata Will Be the Number One Business-to-Business Issuer and Processor of Payment Services in Our Selected Markets 2

3 Goals Increased Revenue Increase Transactions Maintain High Recurring Revenue Model Double-Digit Revenue Growth Profitable Growth Focused Cost Management Low-Cost Producer Margins in the 30% Range 3

4 Positioned for Growth Transportation 81% Transportation Retail 54% Services 34% Retail Services 15% Growth Rate 3.3% Local Fleets/ BusinessLink/ New Products 4% Transportation 58% Growth Rate % Retail Services 41% Local Fleets/ BusinessLink/ New Products 8% 4 * Revenue from ongoing operations

5 Our Strategy for Growth Continues 5 5

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15 CORE BUSINESS Electronic Payment Processing Progress of our Strategy Revenue Growth Proj. 4.8% 7.5% 14.4% 16.8% 14.6% Price of fuel impact 1.3% 0.6% 3.8% 4.7% 1.6% NON-CORE BUSINESS Non-Electronic Payment Processing (2.8)% (12.0)% 2.5% 7.6% 6.3% Total Comdata 2.7% 2.3% 11.7% 14.9% 13.0% Total Growth Adjusted For Price of Fuel Impact 1.8% 2.1% 8.8% 11.2% 11.8% 15

16 IT Infrastructure at Work Trucking International Retail Construction Distribution Payment Services 16

17 IT Infrastructure at Work United States Canada Europe South Africa 17 Mexico 2006 Asia 2007 South America 2006

18 I.T. Capacity Timeline Transportation 8AM 5PM Retail 10AM 10PM International* 1AM 6AM Retail 5PM 10PM International* 6PM 4AM Monday Friday Saturday, Sunday, Holidays 18 *International due to time change

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20 20 The Product

21 BusinessLink Proj. Revenue Revenue Revenue $13.2M $19.4M $25.8M Run Rate for 2007 $29.7M Existing Fuel 21% New Fuel 29% ecash 2% Controlled Spending 48% 21

22 Strategy Utilize Comdata s one card payment technology platform to penetrate markets that are fuel-energy intensive, ultimately becoming the low-cost solutions provider for all corporate spend 22

23 Strategy in Action 2006 Fuel Business Services 2009 $9.7M 567% CAGR 88% Fuel Maintenance Aviation Virtual Card Purchasing Card Processing International 23

Log Auditing Virtual Card 2009 CAGR 35% 45.

24 2003 Strategy in Action Fleet Services 323% Fuel 2006 Express Check Fuel Express Check ecash Purchasing Card Log Auditing Virtual Card 2009 CAGR 35% 45.5% Fuel Express Check ecash Purchasing Card Log Auditing Virtual Card ATM 24

Strategy in Action 2006 Merchant Services CAGR 31% Fuel ecash ATM 2009 127%

25 Strategy in Action 2006 Merchant Services CAGR 31% Fuel ecash ATM % Fuel ecash ATM Purchasing Card Merchant e-reporting Processing Gift Card Mall 25

26 Strategy in Action Merchant Services 2006 Fuel ecash Receivables Management Processing ATM CAGR 26% 100% 2009 Fuel ecash Receivables Management Processing ATM Purchasing Card Merchant e-reporting Gift Card Mall 26

27 Competitive Landscape Diesel Fuel Gasoline Comdata Cash and Generic Cards Other Other 27 Competitive Advantages Relationships Internal Cost Structure Real-Time Interfaces, Data and Reporting Industry Experience Comdata Competitive Advantages Fuel Discounts Internal Cost Structure Multiple Services on One Card Consolidated Fuel Types on One Card

28 Key Action Plans Increase Product Penetration Sell non-diesel fuel controlled spending Offer additional funds transfer products Enter Adjacent Markets Lead with fuel Expand with payment solutions 28

29 Key Action Plans Intensify Growth of Non-Core Business Merchant Services Expand through truck stop and maintenance companies Regulatory Compliance Transactional growth Financial Services Risk management 2005 Revenue up 7.6% with 20.4% Bottom Line Growth 29

30 Transportation Summary Our Strategy is Working Aggressively Increasing Our Position and Market Share in the Fleet and Business Services Markets Improving Performance of Our Non-Core Products New Market Expansion 30

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32 Our Line-Up of Payment Cards Cash Cards Purchases Returns Promotions BusinessLink ecash Reimbursements Private Label Cards Government Services Benefits Distribution Loyalty Points to Dollars Rewards 32

33 Retail Services Strategy SVS will become the provider of choice for all services associated with automated stored value and other card products by leveraging our technology, infrastructure and service level 33

Blueprint for Success Holiday Promotions Corporate Incentives Picture and Video Gift Cards Branded Gift Card Rebate and Warranty Card Back-to- School

34 Blueprint for Success Holiday Promotions Corporate Incentives Picture and Video Gift Cards Branded Gift Card Rebate and Warranty Card Back-to- School Stored Value Card Utilization Scrip Programs Loyalty and Rewards Programs New Store Openings Limited Edition Cards ecash Payroll Cards Sports Marketing 34

35 Competitive Landscape Gift Card Market Share Store Locations Mid-Market SVS/GCS SVS Other Restaurants - QSR Other SVS / GCS No Program No Program Other In-House In-House No Program 35 In-House

36 Key Action Plans Introduce New Products, Leverage Adjacent Markets and Enhance Existing Services Loyalty Mass market BusinessLink Gift card mall Branded debit cards Sports team marketing 36

Client-defined thresholds Rewards Card Discount Card Retailers Launched in 2005 The Body

37 SVS Loyalty Choice Points to Rewards Stored value Discounts Coupons for products/services Units Card The Ultimate Card Single Bucket Loyalty Card Gift Card Reward Delivery On demand Client-defined thresholds Rewards Card Discount Card Retailers Launched in 2005 The Body Shop Armstrong Gardens Accent Intermedia Theme Parks Employee Card Coming Soon 37 Unbridled Rewards

38 Mass Market Offer a Standardized, Self-Service Product Marketed Through Resellers Single Set-up Targeted at Resellers Limited Customer Service Self-Service Model Data vs. Reports 38

39 BusinessLink Product Set ecash (payroll distribution) Controlled spending Employee discounts Private Label Encashment Full access to cardholder funds Future encashment partners Q launch Safeway Alliance 39

75,000+ Locations in North America Sales up 227% Transactions up 285% 2006 Goal 100,000+ locations Q4 2006 Strategic Partners A&P Dollar

40 75,000+ Locations in North America Sales up 227% Transactions up 285% 2006 Goal 100,000+ locations Q Strategic Partners A&P Dollar General Publix CVS Office Depot Roundy s Albertsons Walgreens Rite Aid Radio Shack Staples Kroger 7-11 Convenience Stores Gift Card Mall 40

Opportunities Shared wallet retailers Retailers offer complimentary products/services

41 Branded Debit Gift Cards MasterCard or Discover Branded Gift Card Limited Acceptance with Select Retailers Fits Market between Open and Closed Gift Card Programs Opportunities Shared wallet retailers Retailers offer complimentary products/services Events/venues/festivals/theme parks Multiple gaming/hotel/resort properties Corporate incentives 41

42 Sports Team Marketing Partnerships Major League Baseball NBA NFL NCAA Teams 50 teams NASCAR 5 major racing teams Churchill Downs 42

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44 International Strategy Sell our gift cards, merchandise return and loyalty cards to existing customers that have international operations and to foreign companies located in our targeted countries 44

45 45 Active Countries and Pending Committed Implementations 2005 Canada France Germany Ireland Netherlands 2006 Australia Austria Belgium Brazil Czech Republic 2007/2008 Botswana China Greece

45 45 45 Active Countries and Pending Committed Implementations 2005 Canada France Germany Ireland Netherlands 2006 Australia Austria Belgium Brazil Czech Republic 2007/2008 Botswana China Greece Japan Luxemburg Poland Denmark Malaysia Russia Finland Namibia South Africa Hungary S. Korea Sweden Italy Swaziland Switzerland Mexico Taiwan United Kingdom Norway Thailand Portugal Turkey Slovenia Spain

46 46 Select International Clients

infrastructure overhaul SVS pursuit of new market segments Maintain Margin in 30%

47 Comdata Summary Double-Digit Growth Move into electronic payment processing Success of BusinessLink International gift card expansion I.T. infrastructure overhaul SVS pursuit of new market segments Maintain Margin in 30% Range Leverage I.T. infrastructure Consolidate operations Utilize Six Sigma to drive process improvements 47 Low-Cost Producer

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Staples & OB10. Conference Presentation. Kevin Bourke & Joachim Eckerle Date: Presented by:

Staples & OB10. Conference Presentation. Kevin Bourke & Joachim Eckerle Date: Presented by: Staples & OB10 Conference Presentation Presented by: Kevin Bourke & Joachim Eckerle Date: November 2012 Staples Structure $24 Billion USD Global Sales 88,000+ Associates One of the Largest ecommerce Sales