(MIT:TSXV) A LEADING GLOBALLY CERTIFIED PAYMENTS COMPANY

Transcription

1 (MIT:TSXV) A LEADING GLOBALLY CERTIFIED PAYMENTS COMPANY February 2018

2 Disclaimer This presentation contains forward-looking statements under applicable securities legislation. Forward-looking statements include, but are not limited to, statements with respect to The Mint Corporation s (MIT:TSXV) ( Mint ) future revenue and revenue potential; competitive advantages; the performance and reliability of Mint s products; future operations, prospects and timetable; and protection of its intellectual property. Generally, forward-looking information can be identified by the use of forward-looking terminology such as plans, expects or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates or does not anticipate, or believes, or variations of such words and phrases or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of future contracts and revenue are based on management experience and research and analysis. Capital and operating cost estimates are based on extensive research of Mint, and past operations to date. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Mint to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks described in Mint s public disclosure. Although management of Mint has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, 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. Mint does not undertake to update any forward-looking statements, except in accordance with applicable securities laws. 2

3 The Mint Corp Global payments company Headquartered in Toronto, Canada with operations in Dubai, UAE Listed on the Toronto Venture Exchange (TSXV) Globally certified PCI DSS compliant payments platform enables Mint s technology and product offering to expand globally Issuer and processor of Mastercard and Unionpay Deep subject matter expertise in payments and related sectors In the process of leveraging expertise and payments infrastructure in the existing UAE business to expand internationally 3

4 Current Focus Providing innovative fin-tech solutions to the overlooked and under-served in the UAE. EMPOWERING THE UNBANKED 4

5 Mint Leader in Financial Inclusion Mint provides payroll services to over 800 corporate clients and financial institutions, which include some of the leading blue-chip companies in the UAE. Huge addressable market with 5 million in just UAE and 10 million additional across other Gulf countries. Mint processes over US$1 billion in payroll annually into a globally accepted Mastercard or UnionPay card linked to a mobile wallet. Approximately 400,000 cardholders and is expected to reach over 1 million in the UAE. Continually evolving product offering to capture a larger percentage of cardholders spend within the platform. In the process of acquiring a financial institution to provide loans to cardholders which has the potential to increase annual revenue per cardholder to over $346. 5

6 The Mint Community $1 Billion+ in Purchasing Power / Year and Growing Mint provides integrated financial services to the unbanked worker and their broader community within the United Arab Emirates (UAE). EMPLOYEES Loans Overdraft Remittance/FX Mobile Phone Top-Up MERCHANTS Virtual Store Point of Sale (POS) Accounting Inventory Management US $1 Billion+ PAYROLL PROCESSED 400,000 CARDHOLDERS 800+ EMPLOYERS COMMUNITY 15+ FINANCIAL INSTITUTIONS EMPLOYERS Payroll Management Insurance Labor Guarantees FINANCIAL INSTITUTIONS White-Label Transaction Processing Payroll Card Services ATM Management 6

7 Risk in the UAE for foreign investors is rated as low to moderate. Source: European Journal of Business and Management United Arab Emirates AA2 rated country Source: Moody s th in GDP per capita globally Source: World Bank 2016 Largest international airport in the world Source: Airports Council International Investor friendly with no corporate tax English common law in free zone where Mint operates * Gulf Cooperation Council (GCC) includes: Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman. Financial and economic center of the GCC region* Diversified economy and a dynamic open market 7

8 Expats account for 90% of UAE workforce. Source: CNN The Unbanked Worker Mint s Cardholders 5 million unbanked expats in the UAE Steady jobs with long term work visas Earns on average US $4,000 per year Source: Based on Mint s internal data No access to traditional financial services Hardworking and views employment in UAE as prized achievement Government focused on protecting rights of foreign workers 8

9 New regulations are bringing over half a million new domestic workers into the WPS program Wages Protection System (WPS) Government Mandated Payroll System Introduced in 2009 to provide a safe, secure, efficient mechanism to streamline wage payment Requires that all wages are securely paid through an authorized financial institution All payments must be made through electronic means The employer is responsible for all expenses incurred to join the WPS program Dedicated office in the UAE Central Bank set up to monitor compliance Recently the government added health insurance to the mandatory services offered to workers and paid for by employers 9

10 Providing government mandated services to our corporate clients The majority of Mint s cardholders are workers who have no access to bank accounts but still need to be paid electronically. Mint provides payroll disbursement services through a reloadable payroll card directly linked to a full featured mobile wallet. Mint will continue to broaden its product offering to meet the needs of its community of cardholders. EMPLOYERS PAYROLL DISBURSEMENT & OTHER SERVICES EMPLOYEES 10

11 Vertically Integrated, feature rich, payments platform 3 RD PARTY-PAYMENT PROCESSING PAYROLL LOANS MERCHANT ACQUIRING OVERDRAFT AUTO INSURANCE REMITTANCE HEALTH INSURANCE DEPOSITS 11

12 Expanding business lines Expanding product offering that enhances Mint s relationship with its community of cardholders and their employers. EMPLOYEES EMPLOYERS REMITTANCE Mint provides its cardholders the ability to send money directly from our mobile app, linked to their payroll card, in partnership with licensed remittance companies. INSURANCE Health insurance is now mandatory in UAE to be paid by all employers in the UAE. Logical to bundle service offering with existing payroll product. LENDING Mint is in the process of acquiring the licenses to offer lending products to its captive cardholder base. DEPOSITS Employers in the UAE are required to deposit approximately US $800 with a registered institution for each foreign employee they hire. 12

13 Becoming the dominant regional payments processor and card issuer Mint s Payment Platform ISSUER Only payments company that has the capability to be a card issuer, payment processor and merchant acquirer. There Void in the market for an independent payment processor and card issuer. Mint well positioned to roll-out a domestic debit scheme which will revolutionize the payments in the region. Mint is entering the merchant acquiring market with a differentiated offering enabled by its control over the payments value chain. CUSTOMER MERCHANT THIRD-PARTY PAYMENT PROCESSOR Mint plans to control the entire payments lifecycle from pay cheque to card transaction, while handling the back end processing. AQUIRER 13

14 Growth Strategy Government broadening payment disbursement regulation in UAE and Gulf Region Acquiring financial institution to provide lending products Mobile first payments platform Entering merchant acquiring with differentiated offering Becoming dominant regional payment processor 14

15 Potential annual revenue per cardholder $600 Each Mint cardholder has the potential to generate over US $600 in revenue per year. Mint expects to capture at least US $130 of this potential, at a 57% net income margin, by This implies only a 22% penetration into Mint s forecasted cardholder base. All figures in USD $ TARGET NET INCOME $ TARGET REVENUE POTENTIAL REVENUE POTENTIAL REVENUE IN EXCESS OF $240 MILLION WITH THE CURRENT CARDHOLDER BASE 15

16 Unit Economics Increasing revenue per cardholder from new products with high net income margin of over 57% Product Roll out Revenue per year 2018 Q Q Q Q Q1 Payroll & Interchange $15 Labour Guarantee $16 Mobile Top-up $11 Remittance $82 Overdraft $98 * Insurance $32 * Lending $346 * Total $600 * Pilot program with launch later in

17 Consolidating the fragmented, unbanked financial services ecosystem BANKS WPS business is handled for existing clients but it is not a core focus Not focused on in workers who earn less than US $5,000 Most use legacy third party processing platforms EXCHANGE HOUSES Solely focused on remittances Low technology sophistication Increased regulatory pressure forcing them to evolve or partner 17

18 Stakeholders and strategic partners Mint s payments platform is built on S2M architecture, which is used by over 150 financial institutions in the region. Mint is the first approved third party processor and issuer of UnionPay chip and contactless cards in the region. Mint is licensed to issue and is an approved third party payment processor for chip and contactless globally accepted Mastercard cards. Mint is a globally certified Payment Card Industry Data Security Standard (PCI DSS) compliant payments platform. Strategic banking partner that provides a range of banking, investing, and risk management products and has branches across the UAE. Certified third party processor and WPS program administrator with the Central Bank of UAE. 18

19 Milestones Evolving from a payroll administrator to a vertically integrated fintech powered community Migrated card portfolio and ATM s to in-house processing platform In negotiations to reduce indebtedness from C$65 to C$20 million Launching mobile app linked to payroll card In discussions to acquire a financial institution which will enable Mint to start providing lending products to its cardholders Platform certified by PCI, Mastercard and UnionPay Added 100k new cardholders through new corporate clients Completed pilot program of deposit, insurance and lending products Launching remittance service, available within the app Hired new Chief Operating Officer with blue-chip industry experience 19

20 Forward Looking Focus Evolving from a payroll administrator to a global vertically integrated fintech powered community THE FUTURE IS MINT 20

21 Expanding opportunity in UAE beyond GLOBAL UAE 5 GULF REGION 10 MILLION 2 BILLION MILLION 500k Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, and Oman. Addition of domestic worker groups under new legislation 21

22 Mint Block Corporation Blockchain technology will augment Mint s existing remittance platform, increasing margins and enabling cryptocurrency based remittance. Opportunity to build a full suite of crypto-products leveraging existing payment infrastructure with licensing opportunities to Mint s existing financial institution clients. Mint payment infrastructure and card platform is the vital bridge between cryptocurrencies and the physical world. Instantly convert salary to tokens. Launching a Mint token for cardholders, provides alternative to cash, and will include exclusive offers to drive loyalty. For illustrative purposes only. Dubai Sets Its Sights On Becoming The World s First Blockchain-Powered Government forbes.com 22

23 Management & Board Vishy Karamadam Chairman & CEO The Mint Corp. Over 20 years of corporate and entrepreneurial experience; specializing in restructuring, strategy and capital markets Co-Founder of Gravitas Financial Inc. Btech in Electronic Engineering, Masters in Finance from the University of Mumbai and an MBA from McGill University Abdul Razzak Chairman & CEO Mint Middle East Well known technology entrepreneur Deep insights in payments, media and telecom Strong relationships with key financial and government players in the region Neil Gilday, CFA Director, Corporate Development Over 20 years investment industry experience Director and portfolio manager of Gravitas Securities Inc. Founding partner at Cumberland Private Wealth which had over $1.7 billion in assets under administration Steve Dulmage, CPA, CA, Director and Audit Committee Chair 40 years of experience in the Canadian investment industry Chief Financial Officer for RBC Dominion Securities for 16 years Vikas Ranjan, MBA Director, Capital Markets Seasoned executive with over 22 years of capital markets experience Co-Founder of Gravitas Financial Inc. Senior roles at TAL Global Asset Mgmt., BMO, National Stock Exchange and Axis Bank Holds an MBA in Finance from McGill University Ashish Kapoor, CPA, CA, Director and Audit Committee Member Over 10 years of experience in investment banking, most recently as Senior Vice President of Macquarie Capital Extensive experience in identifying, structuring and executing on investment opportunities 23

24 Corporate information Symbol TSXV:MIT Market Price: $ Week Range: $ $ 0.45 Market Cap (M): $ 41.0 Basic Shares Outstanding (M): $0.40 $0.35 $0.30 $0.25 $0.20 Source: Company Data, Thomson Reuters 02/07/2018 All figures reported in CAD $0.15 $0.10 $0.05 $0.00 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 24

25 Summary Business at key inflection point and poised for growth Completed migration of card portfolio and ATM network to Mint s globally certified, in-house processing platform Completed deposit, lending and insurance pilot programs Launched Hafed mobile application linked to payroll card, enabling cardholders to access lending, remittance and other services directly through the app Strengthened execution capability with the hiring of Chief Operating Officer with blue-chip industry experience Proposed acquisition of local financial institution enables lending to Mint s captive cardholder base Clear path for strategic growth via roll-up of competitors and related business lines Significantly deleveraged through successful restructuring of indebtedness from CAD $65 to CAD $20 million* *Pending closing process 25

26 The Mint Corp. (TSXV:MIT) 333 Bay Street, Suite 1700 Toronto, Ontario, M5H 2R2 (647) Mint Middle East LLC. G02, CBD Building Sheikh Zayed Road P.O. Box Dubai, UAE +971 (4) Auditors: MNP LLP Legal Counsel: Beard Winter LLP