send, spend and manage your money for personal …2016/06/30 · focus to stimulating its current...
TRANSCRIPT
Investor Presentation
June 2016
Send, spend and manage your money
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DisclaimerThispresentationhasbeenpreparedforChimpChangeLimited(ChimpChangeortheCompany).Theinformationcontainedinthispresentationisforinformationalpurposesonlyandhasbeenpreparedforuseinconjunctionwithaverbalpresentationandshouldbereadinthatcontext.
Theinformationcontainedinthispresentationisnotinvestmentorfinancialproductadviceandisnotintendedtobeusedasthebasisformakinganinvestmentdecision.Pleasenotethat,inprovidingthispresentation,ChimpChangehasnotconsideredtheobjectives,financialpositionorneedsofanyparticularrecipient.ChimpChangestronglysuggeststhatinvestorsconsultafinancialadvisorpriortomakinganinvestmentdecision.
Norepresentationorwarranty,expressorimplied,ismadeastothefairness,accuracy,completenessorcorrectnessoftheinformation,opinionsandconclusionscontainedinthispresentation.Tothemaximumextentpermittedbylaw,noneofChimpChange,itsrelatedbodiescorporate,shareholdersorrespectivedirectors,officers,employees,agentsoradvisors,noranyotherpersonacceptsanyliability,including,withoutlimitation,anyliabilityarisingoutoffaultornegligenceforanylossarisingfromtheuseofinformationcontainedinthispresentation.
Thispresentationincludes“forwardlookingstatements”withinthemeaningofsecuritieslawsofapplicablejurisdictions.Forwardlookingstatementscangenerallybeidentifiedbytheuseofthewords“anticipate”,“believe”,“expect”,“project”,“forecast”,“estimate”,“likely”,“intend”,“should”,“could”,“may”,“target”,
“plan”“guidance”andothersimilarexpressions.Indicationsof,andguidanceon,futureearningordividendsandfinancialpositionandperformancearealsoforward-lookingstatements.
Suchforward-lookingstatementsarenotguaranteesoffutureperformanceandinvolveknownandunknownrisks,uncertaintiesandotherfactors,manyofwhicharebeyondthecontrolofChimpChangeanditsofficers,employees,agentsorassociates,thatmaycauseactualresultstodiffermateriallyfromthoseexpressedorimpliedinsuchstatements.Actualresults,performanceorachievementsmayvarymateriallyfromanyprojectionsandforwardlookingstatementsandtheassumptionsonwhichthosestatementsarebased.ReadersarecautionednottoplaceunduerelianceonforwardlookingstatementsandChimpChangeassumesnoobligationtoupdatesuchinformation.
Thispresentationisnot,anddoesnotconstitute,anoffertosellorthesolicitation,invitationorrecommendationtopurchaseanysecuritiesandneitherthispresentationnoranythingcontainedinitformsthebasisofanycontractorcommitment.
Thispresentationdoesnotconstituteanoffertosell,orasolicitationofanoffertobuy,anysecuritiesintheUnitedStates.ThesecuritiesofChimpChangehavenotbeen,andwillnotbe,registeredundertheU.S.SecuritiesActof1933,asamended(SecuritiesAct)orthesecuritieslawsofanystateorotherjurisdictionoftheUnitedStates,andmaynotbeofferedorsoldintheUnitedStatesexceptincompliancewiththeregistrationrequirementsoftheSecuritiesActandanyotherapplicablesecuritieslawsorpursuanttoanexemption
from,orinatransactionnotsubjectto,theregistrationrequirementsoftheSecuritiesActandanyotherapplicablesecuritieslaws.
EXCLUSIONOFLIABILITY- Withoutlimitationtotheforegoingandtothemaximumextentpermittedbylaw,eachoftheCompanyanditsrepresentativesacceptsnoliability(includinginnegligenceormisrepresentation)foranylossordamagesufferedorincurredbytherecipientoranyotherpersonhowevercausedrelatinginanywaytothispresentation,includinganyomissions,excepttotheextentstatedinadefinitiveagreementwithsuchpersonwhen,as,andifitisexecuted.
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ChimpChange’s vision
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toofferafree,innovative,featurerich,social,digitalbankingexperience
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Why ChimpChange?
• US-baseddigitalbankingplatformfortheconnectedgenerationwholiveamobile,socialandon-demandlifestyle
• Itdeliversabetterwaytobankbyofferinganaffordable,personalised andfrictionlessuserexperience
• Theplatformprovidesinnovativefeaturestoimprovecustomers’lives• RegistrationforaFDIC-insuredtransactionalbankaccount,withattachingdebitcard,
takeslessthanafewminutes
• Earlytraction– strongcustomerandtransactiongrowth• Aproven,scalablebusinessmodel– transactionalfeerevenueandpathtobreakeven• Large,underservicedmarket– 92millionmillennials intheUS• Uniqueopportunity– theonlyASX-listeddigitalbankingplatform
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WHYCUSTOMERSLOVECHIMPCHANGE
INVESTMENTHIGHLIGHTS
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18.3billion thenumberofcheques cashedintheUSin2012(totalling US$26trillion)
92million thenumberofmillennials intheUS,30– 40%ofwhomareeitherunderbankedornon-banked
Problem - US underserviced and costly
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$10+ thewidelyacceptedcosttosendmoneyviabanksorusingexistingprovidersinUS
>50% thepercentageofcheckingaccountcustomersintheUSwhopayamonthlyfee
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50%
Problem - millennials don’t like banks
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71% thepercentageofmillennialswhowouldrathergotothedentistthanlistentowhatbanksaresaying
thepercentagecountingontechstart-upstooverhaulthewaybankswork
Source:TheMillennialDisruptionIndex(ViacomMediaNetworks)
1in3 thenumberofmillennials opentoswitchingbanksinthenext90days
72% thepercentageofmillennialswhobelievetheywon’tneedabankatall
All4 oftheleadingbanksinAmericaareamongthetenleast lovedbrandsbymillennials
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Retail banking landscape
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• TraditionalbankingintheUSisprimedfordigitaldisruption– 92millionmillennials areenteringtheirprimespendingyears– Significantunderbanked population– Increasedadoptionofsmartphoneseasingaccesstonon-traditionalbankingsolutions– Consumersaredefectingfromhigh-costfeemodelsandinflexible serviceoftraditionalbanks– Customersarebecomingincreasingly ‘tech-savvy’andconcernsaroundsecurityaresubsiding– Branchlessbankinggainingacceptance
BRANCHLESSDIGITALBANKSAREGAININGACCEPTANCE
GROWINGACCEPTANCEOFNON-CASHPAYMENTMETHODS
Source: Accenture ,TheDigitalDisruption inBanking, 2014 Source: 2013Federal Reserve Triennial Payments Study
Distribution of people willingto switch to a bank withoutbranch locations
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The digital banking transformation has begun
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• TheUSmarketishighlyfragmented,expensiveandremainsheavilyreliantoncheque-basedtransactions
• Alargesegmentofthemarketisexcludedfromtraditionalbankingprovidersduetocost
• Customers’expectationshaveevolvedwithtechnologyandtheywanttotransactattheirconvenience,withinformationattheirfingertips
• Europeisembracingdigital revolutionandmanydigitalalternativestotraditionalbanksareemerging
• While rapidlyevolvingglobally,theUSindependentdigitalbankingsegmentremainsinitsinfancyandtherearefewerplayersintheUSmarketduetohigherbarrierstoentry
• Substantialinvestmentfromventurecapitalandearlybank-ledacquisitionactivityhascommenced
UnitedStates EuropeDIGITALBANKINGPEERS
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Solution – innovative banking platform
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thedigitalbankofthemillennials
• Freemonthlytransactionaccount• ChimpChangeMasterCard• Openanaccountonyourmobile in
minutes• InstantfreeP2Ptransfersto
anyone• Checkyourbalancesand
transactionhistory• $0surchargeacross24,000ATM
network• Instantpushnotificationsandreal-
timetransactionupdates
• Budgetingtools• Spendinganalysistools• Photocheque deposit• Communicatetoyouinasimple
andeffectiveway• Secure– 2factorauthentication
andbiometricverification• FDIC-insured• Loadtoandunloadfundsfrom3rd
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Executed on key deliverables
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INTHELASTSIXMONTHS,CHIMPCHANGEHASDELIVEREDANUMBEROFKEYSTRATEGICINITIATIVESTODRIVECONTINUALGROWTHANDSUCCESS
Financialandkeymetrics- continuallyimproving
Costimprovements– benefitsofscale
Banktransition– toaninnovative,experienced sponsorbank
Productdevelopment– excitingfeaturessuchasbudgetingtoolsandphotocheque deposit
Newstaffacquisitions– formerCMOofAcorns
Customergrowth– alwaysaboveforecasts
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The ChimpChange platform
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Processor
SponsorBank
SchemeCard
LoadNetwork
ACHTransfers
ATMNetwork
CashbackNetwork
IDChecking
FraudMonitoring
CustomerServiceAdditionalFeatures
PhotoCheque Deposit
Budgeting&SpendingTools
THIRDPARTYSERVICEPROVIDERS
ThirdPartyServiceProviders
CHIMPCHANGECUSTOMERChimpChangeactivelymarketsitsplatformtopotentialcustomers.
CHIMPCHANGEPLATFORMTheChimpChangeplatformincludestheChimpChangeapp,customeraccount,ChimpChangedebitMasterCardandChimpChangewebsite,providingcustomerswithasimple,branchlessandfrictionlessdigitalbankingexperiencebyleveragingthebestavailablefinancialserviceproviders.
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A few key features
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SendmoneytoanyoneintheUSusingonlytheirmobilenumber.Moneysent
isavailableinstantly
Photocheque deposit– customerswillneverhavetogotothebanktodepositacheque again.Justtakea
phototodepositacheque intoaChimpChangeaccount
INSTANTP2PTRANSFERS PHOTOCHEQUEDEPOSIT
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A few key features
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SPENDINGTOOLS BUDGETINGTOOLS
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A robust, scalable revenue model
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SCALABLE,MULTI-FACETEDREVENUESTREAMS
ReceiptofinterchangefeesassociatedwithcustomersmakingpurchaseswiththeirChimpChangedebitMasterCard
1%-2%oftransactionvalue
Out-of-networkATMfees US$1.95perwithdrawal
Otherplatformfees(e.g.inactivityfees,foreigntransactionfees,cardreplacementfeesetc.)
UptoUS$4.95inactivityfee3%foreigntransactionfee
Otherservicefees
Chargedonapertransactionbasis
UsagefeesfromphotocheckdepositandnewproductofferingsF
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Key metrics on track
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TOTALTRANSACTIONVOLUMES DEPOSITANDPURCHASEVOLUMES
SOURCESOFDEPOSITEDFUNDS• ChimpChangehasexperiencedstrongquarteronquartergrowthinkeymetricssincelaunchandasat31March2016hasprocessedoverUS$12millionintotaltransactions.
• Onaverage,fundsdepositedintoChimpChangeaccountshavebeeninthefollowingproportions:71.5%directdepositand28.5%cashdeposits.
508%
33%
556%
463%
37%
10%
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Rapid customer growth
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TOTALCUSTOMERS AGEOFCUSTOMERS
• TheCompanyexperiencedgreatsuccessacquiringcustomersinlate2015andsincethenhasswitcheditsfocustostimulatingitscurrentcustomerbase.ChimpChangewill continuewiththisstrategyaswellasacquiringnewcustomerstodrivegrowthindepositvolumesandspend.
• OneofChimpChange’stargetdemographicsismillennials,whomakeup67%ofChimpChange’scustomers(customersbetweentheagesof18to35(inclusive)).
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Customers from coast to coast
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LOCATIONHEATMAP
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What are our customers saying?
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71% ofChimpChangemembersarepromoters
ThebankingindustryexperiencesaNPSbetween-17and58withanaverageof141
-17 0 14 58 61
BasedonasurveyofChimpChangeactivemembers1 Temkin Group- NetPromoterScoreBenchmarkStudy,2014
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Growth strategy
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Newproductofferings• Budgetingtools,spendingtoolsandsavingsaccounts
• Mobilechequedepositing• Billpayments
• Otherinitiatives/featurestosupporttheneedsanddemandsofcustomersandtodriveadoptionoftheplatform
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Marketingandcustomeracquisitioncampaignstodriveuseradoptionandencouragespend• Growdepositvolumesthrough“directdepositcampaigns”toultimatelydrivespendingonChimpChangedebitcards
• Digitalmarketing,paidmediaandinfluencercampaigns• Businesstobusinesspartnerships
• Customerreferral campaigns
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Potentialinternationalexpansion• TheChimpChangeplatformhaspotentialapplicationininternationaljurisdictionsoutsideoftheUSwhere:
• Traditionalretailbankofferingsarerigidandinflexible• Markets aresupportiveofmobilephoneapplicationsandtechnicalinnovation
• There isasubstantialmillennialorunbanked/underbanked population
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Marketing and customer acquisition
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• Socialmediaappinstallads
YouTube Twitter
• Searchenginemarketing
• Publicrelations
• Partnershipmarketing
• Affiliatemarketing
• Cardaggregatorsites
• Referralprograms
• Appstoreoptimisation
• Radio/broadcast
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AshShilkin– FounderandManagingDirectorMrShilkinwastheformerCFOofCO2Australia,acompanylistedontheASX,andhelpedthecompanygrowtoamarketcapitalisation ofmorethan$300million.HeholdsaMastersofLawandBachelorofCommerce.
Board
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PeterClare- Non-ExecutiveChairmanMrClarehasbeeninthebankingindustrysince1995,mostrecentlyastheChiefExecutiveOfficerofWestpacNewZealandLimited,adivisionofWestpacBankingCorporationLimited,from2012to2014.
IanLeijer- CFOandExecutiveDirectorMrLeijer isaCharteredAccountantwithover25years’experience incorporatefinance,strategyandbusinessmanagement.HewaspreviouslyCFOofformerASXlistedcompanyAvatarIndustriesandinterimCEOofKrestaHoldings.
BenHarrison- Non-ExecutiveDirectorMrHarrisonhas10years’experienceadvisingandinvestingincompanies.HepreviouslyworkedforaleadingmidcapcorporateadvisoryhousewhereheexecutedcapitalmarketandM&Atransactions.F
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NickRoberts- CMOMrRobertshasmorethan20years’marketingexperience.MostrecentlyasCMOofAcorns,ahighlysuccessfulapp-basedfintech company,hehelpedattractmorethan1millionmembersinitsfirstyear.
Management
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ClaytonFosset - COOMrFossetthasworkedasanexecutiveatYahoo!inoperationsfinance.HewasafinancialanalystatFirstBostonandholdsaMBAfromHarvardUniversity.
TomRussell- VPProduct&OperationsMrRussellhascorporatefinanceandoperationsexperiencewithafocusongrowthandventurecompanies.HeholdsaBachelorofCommerceandBachelorofEconomics.
YoungLee- VPFinanceMrYoungisaCPApreviouslyworkinginNewYorkwithDeloittehelpingclientsidentify,manage,anddeliverfinancialoptimisation strategies.HeholdsaMastersinAccountingandaBachelorofEconomics.
MuhammadTahir- VPEngineeringMrTahirholdsaMastersinComputerScienceandhasover12yearsofexperiencedevelopingenterpriselevel softwareapplicationsandmanagingengineering teams.
AryanLiaghat- CustomerSupportManagerMrLiaghathas10years’customerserviceandmanagementexperience.HealsoholdsaBachelorofArts.
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Capital structure
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Top Shareholders %
AshleyShilkin(Founder/ManagingDirector) 18.75%
AvatarIndustries PtyLtd 16.95%
BartProperties PtyLtd 4.37%
IanLeijer(CFO/ExecutiveDirector) 4.21%
FinancialInformation
Shareprice (offerprice) $0.80
Sharesonissue1,2 (undiluted) 63,481,383
Marketcapitalisation $50.8million
Cash(listingdate) $16.1mllion
Debt (listingdate) Nodebt
Enterprisevalue $34.7million
1 thecompanycurrentlyhas14.3optionsonissueatvarioustimes2 includes14.6millionsharessubjecttoescrow
• Recentlyraised$15millionunderafullyunderwrittenIPO
• Boardandmanagementholdapproximately24%
• Top20shareholdersownapproximately63%
• Strongsupportfrominstitutionalandretailinvestors
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A visible path to shareholder value creation
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User-friendlyplatform
Forefrontofdigitalrevolution
Aggressivegrowthplans
Hugeaddressablemarket
Strongmanagement team&advisors
Simpleandscalablebusinessmodel
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