INVESTOR PRESENTATION 2018 F ULL -Y EAR R ESULTS
SAFE HARBOR STATEMENT Net Element, Inc. is traded on the NASDAQ Capital Market under the >cker symbol “NETE” This presenta>on is for discussion purposes only. All prices and rates referenced herein are indica>ve and subject to market condi>ons. The material is based upon informa>on that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. The material available in this presenta>on may contain forward-looking statements, which are subject to risks, uncertain>es and assump>ons. In some cases, you can iden>fy these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “an>cipate”, “believe”, “es>mate”, “predict”, “op>mis>c”, “poten>al”, “future” or “con>nue”, the nega>ve of these terms and other comparable terminology. Such forward-looking statements are based on current plans, es>mates and expecta>ons and are made pursuant to the Private Securi>es Li>ga>on Reform Act of 1995. Forward-looking statements are based on known and unknown risks, assump>ons, uncertain>es and other factors. The Company’s actual results, performance and achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward- looking statements. We do not assume responsibility for the accuracy or completeness of any forward-looking statement and you should not rely on forward-looking statements as predic>ons of future events. We are under no duty to update any of these forward- looking statements to conform them to actual results or revised expecta>ons. This presenta>on contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accoun>ng principles. Such non-GAAP financial measures include: general and administra>ve expense before non-cash compensa>on expense. Management uses these non-GAAP financial measures to assess the performance of Net Element’s core business. Net Element believes that these non-GAAP financial measures provide meaningful addi>onal informa>on about Net Element to assist investors in evalua>ng Net Element’s opera>ng results. These non-GAAP financial measures should not be considered as a subs>tute for opera>ng results determined in accordance with GAAP and may not be comparable to other similarly >tled measures of other companies. Any investment in Net Element will be subject to certain risks related to the nature of the Company’s business and the structure and opera>ons of the Company. Any investment in the Company should be made only with an apprecia>on of the applicable risks, which are described in the Company’s filings with the SEC. www.netelement.com www.netelement.com �2
COMPANY OVERVIEW Net Element, Inc. (NASDAQ: NETE) (“Net Element”) is a global technology and value-added payment acceptance solu>ons group ‣ Net Element enables merchants to accept electronic payments (e.g. credit, debit) at the point of sale (“POS”), online and via mobile payment technologies ‣ Broad range of payment acceptance and transac>on processing services that enable merchants of all sizes to accept and process over 100 different payment op>ons in a mul>-channel environment ‣ Fully-integrated payment solu>ons incorpora>ng fraud management and tokeniza>on technologies ‣ Con>nued development of disrup>ve technologies such as blockchain, payments enablement for Internet of Things, biometrics payment acceptance and ar>ficial intelligence ‣ Diversified client base with strong recurring revenues ‣ Surpassed $65.8 million in revenue in 2018 ‣ Surpassed $3.3 billion in total transac>on volume ‣ 88 full->me employees www.netelement.com �3
INVESTMENT HIGHLIGHTS LARGE & GROWING INDUSTRY Large and growing market with favorable economic trends ‣ ‣ The use of non-cash forms of payments including mobile payments has steadily increased over the past then years and con>nues to climb RECURRING REVENUE BUSINESS MODEL Focused on fast growing and highly profitable market segments ‣ ‣ Proven business model in the United States with recurring revenues ‣ Diverse, low-risk, recession proof recurring revenue stream ‣ Strong established customer & partner base RESILIENT OPERATING LEVERAGE ‣ Resilient business with strong recurring revenue and good visibility ‣ Full front and back office opera>ons including risk, underwri>ng, deployment, ac>va>on, client services, data entry and reten>on ‣ Significant, untapped opportuni>es for expansion and growth in selected ver>cals and markets with the focus on value-added offerings PROVEN MANAGEMENT TEAM ‣ Track record of scaling businesses and delivering shareholder value ‣ Proven achievements in new product launch ‣ Proven achievements in new market development ‣ Relentless focus on value crea>on and growth www.netelement.com www.netelement.com �4
COMPANY EVOLUTION EXECUTED STRATEGIC OPPORTUNITIES Acquired recurring cash flows poriolios, projected to add over $9 million in ‣ gross profits over 4 years 2018 ‣ Launched subscrip>on-based payment processing, signed partnership agreement, projected to add over $1.5 million in gross profit over 4 years POSITIONED FOR GROWTH Received $7.55 million ins>tu>onal investment to support growth ‣ ‣ Ensured con>nued compliance with NASDAQ lis>ng requirements 2017 ‣ Launched business unit focused on blockchain technology FOCUS ON VALUE-ADDED RELATIONSHIPS Expanded direct processing rela>onships with financial ins>tu>ons ‣ ‣ Expanded service offerings to over 100 payment methods interna>onally 2016 ‣ Annual revenues increased 35% ACQUISITION OF ONLINE PAYMENT PLATFORM ‣ Acquisi>on of PayOnline, leading online payment plaiorm ‣ Expanded PayOnline to selected emerging markets 2015 ‣ Annual revenues increased 89.5% OPERATIONAL OPTIMIZATION ‣ Debt reduced from $31 million to $3 million ‣ G&A reduced from $12 million to $7 million, excluding non-cash items 2014 ‣ $10 million credit facility to implement strategic ini>a>ves www.netelement.com www.netelement.com �5
MANAGEMENT TEAM EXECUTIVE MANAGEMENT OLEG STEVEN JEFFREY ANDREY DAYAN FIRER WOLBERG GINSBERG KROTOV MARTINEZ Chief Execu>ve Chief Legal Chief Financial Chief Technology Investor Officer Officer Officer Officer Rela>ons BUSINESS LINE MANAGEMENT SVETLANA VLAD SHAWN GIOVANNI CHRISTA ESENNIKOVA SADOVSKIY BROWN DI FEBO SHOOK Head of Integrated Head of Online Head of Risk Head of Acquiring Partner Payments Solu>ons Management & Compliance Growth BOARD OF DIRECTORS DREW FREEMAN OLEG FIRER HOWARD ASH JON NAJARIAN JONATHAN FICHMAN JAMES CAAN Execu>ve Chairman Director Director Director Director Non-Vo>ng Director Chief Execu>ve Officer 30+ yrs payments International CNBC cast member Seasoned Fintech Accomplished Net Element Experience Value-added specialist “Halnime Report” Execu>ve Actor & director TEAM EXPERIENCE www.netelement.com www.netelement.com �6
REVENUE GROWTH 2014-18 CAGR 31.6% $ 65.8 For the five-year period ending December 31, 2018, $ 60.1 Net Element has executed several complex ini>a>ves and con>nued to deliver double digit $ 54.3 percentage year-over-year organic growth $ 40.2 $ 21.2 158% GROWTH 2014 2015 2016 2017 2018 Revenue growth over five-year period ending December 31, 2018 www.netelement.com www.netelement.com www.netelement.com �7 �7
RECURRING REVENUE STREAMS RECURRING REVENUE AS PERCENTAGE OF TOTAL REVENUE 2018 We have amassed a broad poriolio of value added applica>ons that leverage the growth in payments to create a diverse array of recurring revenues and differen>ate us in the marketplace. Recurring service revenue is the primary revenue component for the Company TRANSACTION PROCESSING 85% TRANSACTION SOFTWARE DATA & RECURRING PROCESSING LICENSE ANALYTICS REVENUE 100% SOFTWARE DATA & Fees charged on a per Sonware as a license Business Intelligence LICENSE ANALYTICS transac>on and (SaaS) model allows tools are priced based on 3% 12% processed volume basis merchants to get point- usage. A percentage fee for payment acceptance of-sale sonware without is charged over volume services provided to the upfront capital processed merchant expenditure www.netelement.com www.netelement.com �8
CLIENT GROWTH Extensive network of over 100 independent sales groups and agents, including integrators, value- added resellers, affinity and referral partners boost the Company’s merchant growth Internal Sales Force focused on ver>cals and value-added services External Partners enable rapid scalability and expansion through indirect distribu>on Value-Added Resellers and Integrators focus on technology and synergis>c sales 2013 2014 2015 2016 2017 2018 www.netelement.com www.netelement.com www.netelement.com �9
Recommend
More recommend
