For personal use only. Acquisition of the icash Australian ATM Operations

Transcription

1 Acquisition of the icash Australian ATM Operations

2 Forward looking statements This disclaimer and important notice applies to this presentation and any information provided in relation to or in connection with the information contained in it. This presentation provides information in summary form. Some of that information is based on publicly available sources, has not been independently verified or may not be complete. This presentation contains forward-looking statements which involve a number of risks and uncertainties. These statements reflect current expectations, beliefs, hopes, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, beliefs, hopes, intentions and strategies described in this presentation. No representation or warranty is made as to the accuracy, completeness, reliability, fairness or correctness of the information contained in this presentation. To the maximum extent permitted by law, no person, including Ezeatm Limited and their related bodies corporate, officers, employees and representatives (including agents and advisors), accepts any liability or responsibility for loss arising from the use of information contained in this presentation. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. In this regard, this presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any person. This presentation does not constitute an offer to issue or sell, or to arrange to sell, securities or other financial products. In particular, this presentation and the information contained in it does not constitute a solicitation, offer or invitation to buy, subscribe for or sell any security in the United States or to or for the account or benefit of any U.S. Person (as defined in Regulation S under the U.S. Securities Act of 1993, as amended (the US Securities Act). Securities may not be offered or sold in the United States unless they have been registered under the US Securities Act or an exemption from registration is available. The release, publication or distribution of this presentation in jurisdictions outside Australia may be restricted by law. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

3 Board and senior management Mark Jones Non Executive Chairman Todd Zani CA, B.Bus (Acc/Bus.Law) Chief Executive Officer Chad Zani Managing Director Sales & Marketing Non executive director (private clients) at Patersons Securities Limited with over 20 years of business and stock market experience Managing director of Oakajee Corporation Limited Co-Founder of Ezeatm with over 10 years experience in the Australian ATM market Chartered Accountant with over 20 years broad experience in creating wealth through provision of financial, accounting and taxation services to various industries and is managing director of Ezetax Pty Ltd Formerly served on the board of The Starlight Children s Foundation (WA) Co-Founder of Ezeatm with over 10 years experience in the Australian ATM market Managing director of Barter (WA) Pty Ltd, the Western Australian franchisee of the world s largest trade exchange business Extensive sale and sales management experience with over 15 years experience, having founded Ezepos, an EFTPOS facilities business which services over 17,000 sites in Australia Zaffer Soemya B.E (Civil) Non Executive Director Non executive director of Oakajee Corporation Limited General manager of Westerfield Engineering Pty Ltd which specialises in the installation, maintenance and design of bulk materials handling and processing equipment in Western Australia Extensive experience in project management of major infrastructure and mining projects in Western Australia Graham Anderson CA, B.Bus Company Secretary Chartered Accountant with over 30 years broad experience in audit and related corporate services Extensive experience and knowledge of ASX Listing Rules and Corporations Act and is the director and dompany decretary of Pegasus Metals Limited, Tangiers Petroleum Limited, Echo Resources Ltd. He is also a director of Mako Energy Limited, Oakajee Corporation Limited and company secretary of numerous other listed companies.

4 About Ezeatm History - pre IPO Family owned and operated business, founded in 2000; Largest Western Australian owned ATM network; Unique business model and direct charge of $2.00; Predominantly Western Australian based network (>95%) with sites in QLD, SA and VIC; Launched Ezeatm branding in December 2010; New website design and integrated branding launch in June 2011; and Prospectus to raise $3,500,000 at $0.20 per share to fund national expansion dated 14 July History post IPO Listed on ASX on 7 October 2011 (ASX code : EZA); Initial goals were to achieve 400 ATMs by 2012, and 1,000 ATMs by 2015 ; 40% increase in the owned and operated ATMs *1 ; 53% increase in annualised no. of transactions to be 1,000,000+ *1 ; Relaunched national sales network in late October 2011; In the top 10 most successful floats of 2011 *2 *1 as per ASX Company Update released 14 October 2011 *2 Source : Australian Financial Review : 19 October 2011

5 Transaction overview Ezeatm has agreed to acquire the icash Australian ATM Network for $16mil The acquisition includes all merchant site contracts, ATMs, ATM related equipment and wholesale switching contracts; The icash national network consists of 1,600+ ATMs, 1,000+ owned ATMs and 600+ managed ATMs; and Ezeatm is not assuming any employees or premises obligations and does not not expect fixed operating costs to materially change as a result of the transaction. Acquisition funded by A Sophisticated Investor Share Placement to raise between $8mil and $10mil at an anticipated issue price of $0.40; A Debt Facility from a major financial institution; The use of existing cash reserves.; Completion is expected by 19 January 2012 and is conditional upon approval by Ezeatm shareholders; and Ezeatm has paid a non refundable $1mil deposit. On Completion the Combined Business will have an EBITDA of $5mil 1 and market capitalisation of $26m 2 3 rd largest ATM network in Australia; and Positioned to pursue further growth opportunities and potential acquisitions. Ezeatm and icash are negotiating a distribution agreement Ezeatm will become distributor of the icash range of products in Australia; and Ezeatm has an intended commitment to acquire 2,000 ATMs over a five year period. *1 Based on previously announced historical financial information *2 Based on 65m issued shares post completion and anticipated sophisticated share placement price of $0.40 *3 Based on Reserve Bank report of June 2010 and ATMs in network at completion

6 Transaction highlights #1 On completion the business will be the 3 rd largest independent ATM operation in Australia 1 #2 Portfolio of 1,700+ owned ATMs, and ATMs which switching services are provided for Operations to result in 10,000,000+ transactions per calendar year 2 Scale of the completed business and financial flexibility will enable further growth opportunities #3 The size and flexibility of the Completed Business and relationship with icash enables an aggressive approach to growth opportunities Scope to drive further consolidation of small ATM deployers; and Strength to pursue large financial institution and national franchise group opportunities both locally and internationally #4 Strong financial platform to pursue growth with cash of more than $2m post proposed equity raising and modest debt in the combined business of $5m #5 Proven management team #6 Substantial re-rating potential for the combined business through earnings growth. 1 Based on Reserve Bank report of June 2010 and ATMs in network at completion 2. Based on annualised current transaction levels of the combined business

7 Snapshot of combined business Northern Territory 120 ATMs Queensland 450 ATMs New South Wales 599 ATMs WA 187 ATMs Australian Capital Territory 24 ATMs SA 157 ATMs Victoria 372 ATMs Tasmania 36 ATMs

8 Snapshot of combined business Independent Deployers Major Banks Source : Reserve Bank Report of June 2010 *1 Based on Ezeatm network at completion

9 Financial summary Metrics ($millions unless otherwise stated) Ezeatm Pro Forma Balance Sheet Acquired by Ezeatm Funding of Acquisition Financial Position Post Acquisition Closing share price 29-Nov-11 $0.33 Ordinary shares (millions) Market capitalisation Cash (millions) (1.00) Total Current Assets (1.00) 4.13 Total Non Current Assets Total Assets Current Liabilities Debt Non Current Liabilities 0.61 (0.61) Total Liabilities Net Assets Annual Turnover Estimated EBITDA Note this data will fluctuate based on movements in Ezeatm share price and may differ at the time of implementation of the transaction 1 Cash and debt position at 24-Oct Assets are transferred from icash exclusive of cash and debt 2.Does not include transaction costs which will include stamp duty and advisory costs 3. Based on share price of $0.40 representing the sophisticated placement price. Market conditions may affect this valuation.

10 Benefits to Ezeatm shareholders Creation of a leading independent ATM Network Shareholders benefit from combination of stable producing assets with substantial growth opportunities in the industry Combined operations to produce: >10,000,000 transactions p.a.; ATM network of 1,700+ ATMs; 3 rd largest independent ATM operation; Annual EBITDA of $5mil; and Market capitalisation of $26mil Increased financial strength and capacity to pursue clear growth strategy Enhanced balance sheet strength through scale and capital markets access to support further investment in industry. Scale and flexibility to take opportunistic approach to consolidation of other ATM deployers. Enhanced relationship with icash to pursue major contracts with confidence of manufacturer support. De-risking of portfolio while retaining exposure to growth Diversifies the asset base; Ezeatm transformed from mainly Western Australian independent to truly national deployer; and Low debt funding to complete transaction, <20% of net assets. Enhanced liquidity while maintaining tight share structure Enhanced trading liquidity; Tight share structure of 65mil shares, with a market capitalisation of $26mil at $0.40. This deal is a major step in our national expansion strategy and determination to become the largest independent ATM deployer in Australia - Todd Zani, Chief Executive Officer