Anthony Hynes Chief Executive Officer enett December 17, 2015
Airline content Network carriers Low cost carriers Airline merchandising Ancillaries Tailored offerings (Rich Content and Branding) Travel Commerce GDS Platform Hotels ~650,000 chain & independent hotel properties Other distribution ~60 cruise lines 13 major rail networks Content Hospitality Hotels Rental car and ground transport B2B travel industry digital media Payments enett Front-End Car rental ~36,000 car rental locations Mobile commerce MTT Locomote
About enett
enett provides B2B payment solutions Specialized for the travel industry Travel agents Solving the inefficiencies of B2B payments Travel suppliers
enett provides B2B payment solutions Specialized for the travel industry Deep travel domain expertise Global network of: Over 68k agent locations ~650k hotel properties Direct integration into the Travelport Travel Commerce Platform Deep payments knowledge Broad, highly scalable payments infrastructure Provides access to 35.9m payment locations online One of Europe s leading virtual card issuers Shareholder Primary banking services provider Regulated by the UK FCA
Our Journey
Our journey Company history enett International established by PSP International (now Optal) Conceived enett Virtual Account Numbers and built proof-ofconcept payment platform Travelport became a shareholder of enett Formally launched enett VANs Launched seamless integration with Travelport s Travel Commerce Platform Signed a longterm agreement with MasterCard Fast growing company - customers in 48 countries and expanding market penetration 2002 2007 2009 2011 2013 2014 2015
Our journey How we ve evolved in the past two years. Data Q3 2015 v Q3 2013 117% 219% 93% 45% 49% increase in Virtual Account Number revenue increase in number of transacting customers increase in number of settled transactions increase in number of countries with clients increase in number of employees (from 33 to 48) (from 78 to 116)
Introducing Virtual Account Numbers
Why use enett Virtual Account Numbers? Unique and automated payment process created for the travel industry Virtual Account Number V A N Unique 16 digit MasterCard number generated for each supplier payment
Why use enett Virtual Account Numbers? Unique and automated payment process created for the travel industry V R A R N R Provides you with Risk Reconciliation Reward
Payments with Virtual Account Numbers? Simplifies and automates the process Fast Secure Automated reconciliation Access to dynamic content and rebates No bond requirements Lower cost
Addressable Market
enett: travel payments industry growth opportunity Estimated size of travel sector North America $407bn Latin America $186bn Europe $610bn Middle East & Africa $122bn Asia Pacific $671bn Total $2tn Source: Euromonitor Travel & Tourism Retail Value (RSP), at current prices with fixed 2014 exchange rates excludes car rental insurance replacement costs
enett: travel payments industry growth opportunity Estimated size Estimated of addressable size of travel B2B payments sector in travel Un-addressable payments Post paid consumer transaction Addressable B2B payments, $810bn $420bn Consumer direct to supplier US point-of-sale (air) $270bn $185bn $310bn $810bn Non-US Air pre-paid non-air (e.g. hotel, car, cruise, tours, etc.) Total $2tn China Source: Edgar Dunn & Company, and enett analysis 2012-2017 forecasted CAGR 7.1% (1) (1) Additional opportunities not quantified: payments for non-travel products/services (e.g., advertising, ICT services), from suppliers to travel agents/ corporation (e.g., hotel commissions)
enett: travel payments industry growth opportunity Estimated size of addressable B2B payments in travel North America $120bn Latin America $100bn Europe $330bn Middle East & Africa $65bn Asia Pacific $195bn Total $810bn Source: Euromonitor Travel & Tourism Retail Value (RSP), at current prices with fixed 2014 exchange rates excludes car rental insurance replacement costs
enett: travel payments industry growth opportunity Immediate target segments OTA hotel payables $80bn Scheduled air ticket payables $178bn Total immediate opportunity $258bn Source: IATA BSP Cash; OTA. Hotel Market Size includes both retail and merchant model Low Cost Carrier payables $133bn 2012-2017 Forecasted CAGR 8.1% (1) Source: Low Cost Carrier payables is estimated from a combination of Euromonitor and PhoCusWright data (4% of Intermediary Air volumes)
enett Differentiation
enett business model Typical enett issuer cost cost base recovery as a breakdown through of interchange No credit losses Risk costs (Credit and fraud losses, collection and mitigation costs) Financial carrying costs (Funding interest-free periods) Processing costs Margin to share No collection costs No fraud No financial carrying costs No physical card printing, mailing and other costs associated with statements Low cost processing Interchange = revenue for enett versus cost recovery for a typical issuer
Case study example: Online Travel Agency Traditional model New model with Virtual Account Numbers Cost savings Foreign exchange costs Reconciliation 2-3% 1% costs 0.3% 0.1% New revenue Cash flow benefit 0.15% Virtual Account Number rebate 0.5% For every $100m processed, the Online Travel Agency receives ~$500k in rebates Online Travel Agency generates ~$450k in cost savings and is covered by the MasterCard chargeback guarantee Source: PhoCusWright Payments Unsettled, enett Analysis, IATA BSP Calendars
Why enett is uniquely positioned to win Specialized Low Cost Accessible Secure Innovative Domain expertise Seamless integration 31 currencies, 17 local settlement Foreign exchange enett as cardholder Available in 71 countries to agencies of all sizes Strong focus on service delivery Unparalleled tailored funding and chargeback processes Protection against supplier default Proprietary platform Unique settlement capability Product enhancements and development
Strategic Priorities
Six goals in 2016 Increase enett s penetration of the addressable market Extend our currency capability to open up further volume and new markets Lead the way in customer driven product innovation Continue to increase differentiation vs. competitors Extend the operation globally and build scale in people, systems and processes Be the #1 travel virtual card provider globally
Q&A GDS