$25.6M CAPITAL RAISING TOUCHCORP LIMITED ASX:TCH WWW.TOUCHCORP.COM INVESTOR PRESENTATION SEPTEMBER 2016 TOUCHCORP LIMITED | 1
TOUCH SERVICE OFFERING TOUCHCORP NOW OFFERS ITS CUSTOMERS A COMPLETE OMNI-CHANNEL SYSTEM ALLOWING THEM TO PROVIDE AN UNPARALLELED CONSUMER EXPERIENCE NEW MODULES BASE MODULES RETAIL PERIMETER IDENTIFICATION & TRANSACTION FRAUD PROTECTION SERVICES PROTECTION ACTIVATION INTEGRITY SYSTEMS MOBILITY HEALTH & COMPLIANCE DATA COLLECTION CARD NOT PRESENT CARD PRESENT SERVICES GOVERNMENT SYSTEMS & ANALYSIS PAYMENTS PAYMENTS (SELF-SERVICE) SERVICES TOUCHCORP LIMITED | 2
2016 BUSINESS HIGHLIGHTS AUSTRALIA & PACIFIC > Significant effort directed to utilising Touch platform to seed long term transaction streams and valuable equity positions in emerging companies > Afterpay listing on the ASX with Touchcorp holding approximately 30.3% of issued capital (current market value c$134 million) > Afterpay generating transactional revenue with over 600 Afterpay merchants connected (as per Afterpay’s Annual Results Presentation released to ASX on 25 August 2016) > Mony Payments system completed and generating revenue > > Improved contract terms in CBA Health Springboard year for strong future performance TOUCHCORP LIMITED | 3
2016 BUSINESS HIGHLIGHTS EUROPE > Change Up – an international platform launching across Europe, Asia and Australia – Initial integration completed First round capital raising completed with Touchcorp holding approximately – 15. 4 % of issued capital (estimated value c$5.0 million) > Cornèr Bank – a Switzerland based bank operating across Europe and the UK Appointment confirmed – Cornèrcard services launched and generating transactional revenue – > – Substantial additional engagement expected Springboard year for > Once Group (Spain) software developed and in pilot strong future performance TOUCHCORP LIMITED | 4
approximately $33m STRONG BALANCE SHEET WITH NO DEBT > Pro-forma net cash position, post raising, of $ MILLION 1H2015 1H2016 Cash and cash equivalents 10.4 3.2 > Integration activity and transactional revenue Trade Receivables 13.9 11.8 growth is continuing Change Up Cash Receivable - 6.3 > Touchcorp has sufficient capital to undertake Financial asset - Change Up - 5.0 existing activities that are already underway Investment in associates - Afterpay - 11.9 > Touchcorp holds 50 million shares in Afterpay Other assets 24.8 32.3 and 10 million shares in Change Up Total assets 49.1 70.4 – As at 27 September 2016, Afterpay share price is $2.68 per share resulting in Market Payables 12.6 14.5 Value of the Afterpay shareholding of Other liabilities 1.1 1.4 $134m Total Liabilities 13.7 15.9 – Change Up shares are valued at $0.50 Net Assets 35.4 54.6 per share as at 19 August 2016, resulting in Shareholders’ Equity 35.4 54.6 Market Value of the Change Up shareholding of $5.0m TOUCHCORP LIMITED | 5
GROWTH STRATEGY CONTINUED GROWTH IN THE NUMBER OF NEW TRANSACTIONS FROM EXISTING CUSTOMERS CUSTOMER RESULTING IN INCREASED REVENUE WINS: > Optus > Change Up > 7-Eleven > Cornèrcard > CBA > Once Group – a chain of 24,000 > HICAPS convenience stores across Spain STRONG PIPELINE CURRENTLY IN DEVELOPMENT ACROSS: > General Retail > Utilities > Convenience retail > Toll operators > Telecommunications > Consumer Finance > Insurance > Banking TOUCHCORP LIMITED | 6
GROWTH STRATEGY EMERGING COMPANIES ACCELERATION OF THE DEVELOPMENT OF EMERGING COMPANIES THROUGH: > Expansion of the Touch System Platform‘s utility from Service Module integration level to “Whole of Platform” consumption level > Successful implementation of the strategy through Afterpay and Change Up, resulting in significant Integration Revenue in FY15 and FY16, $13m and $11.3 respectively > Expected high transaction counts for Afterpay and Change Up in the medium to long term > A number of similar projects in the pipeline CURRENT PERFORMANCE UPDATE – Q3 CY16 > Touch continue s to increase activity in customer integrations > Transactional recurring revenue continues to demonstrate period on period growth TOUCHCORP LIMITED | 7
NEW OPPORTUNITY > Touchcorp has identified an immediate opportunity t o accelerate the expansion of the Touch Systems Platform utility through the establishment and investment in the operations of an European business platform > Touchcorp Board believes that this opportunity is so significant that unlike the recent Afterpay and Change Up transactions there is significant value to be created in taking a pure equity position rather than securing external investors > Expectation that: – the new business will handle large scale transaction flow with higher value transactions – Touchcorp will begin to receive transaction revenue from this venture 2nd half CY17 > The new business aims to use consumer data to create actionable intelligence. Third party customers can rely on this data to make decisions regarding the provision of services or credit to their underlying customers in real time – Transaction data to be provided by Touchcorp’s European Retail Group partner – Functionality and technology to be provided by Touchcorp > European Retail Group partner is expected to contribute significant capital consistent with Touchcorp’s contribution with current intention that the European business platform be owned 50/50 TOUCHCORP LIMITED | 8
CAPITAL RAISING > Touchcorp is undertaking an equity capital raising of 12.8m shares to raise up to A$25.6million – placement of 10.0m ordinary shares at $2.00 per share – placement of 2.8m ordinary shares to major director related entities at $2.00 per share (subject to shareholder approval) USE OF FUNDS > Working capital to fund technical resource requirements in Australian and Croatian technical offices > Working capital to fund operational and administrative expenses for the new venture > Capital to fund specific hardware and software requirements STRATEGIC RATIONALE > The new capital will provide Touchcorp with sufficient working capital to execute its growth objectives and achieve it s strategic initiatives over the near term > Touchcorp is confident that this investment will be accretive to earnings over the medium term > Strong balance sheet assists the sales process when dealing with large customers TOUCHCORP LIMITED | 9
5.5% Offer price represents a discount to: 4.8% 5 day VWAP up to and including 27 September 2016 ($2.12) OFFER SUMMARY OFFER DETAILS Shares currently on issue 118,703,568 Number of shares to be issued under Offer 12,800,000 > To be issued to sophisticated and institutional investors (Institutional Offer) 10,000,000 > To be issued to entities associated with Director (Duncan Saville) subject to shareholder approval at a General Meeting (Director Offer) 2,800,000 Total amount to be raised under Offer (before costs) $25,600,000 Total number of shares on issue post Offer 131,503,568 Offer price per share $2.00 > Last close as at 27 September 2016 ($2.10) > TOUCHCORP LIMITED | 10
DISCLAIMER The material in this presentation has been prepared by Touchcorp to sell or the solicitation of an offer to subscribe for or buy any Limited ARBN 603 731 184 (Touchcorp) and is general securities, nor the solicitation of any vote or approval in any background information about Touchcorp’s activities current at jurisdiction, nor shall there be any sale, issue or transfer of the the date of this presentation. The information is given in summary securities referred to in this presentation in any jurisdiction in form and does not purport to be complete. Information in this contravention of applicable law. presentation, including forecast financial information should not This presentation may contain forward looking statements be considered as advice or a recommendation to investors or regarding the intentions or performance of Touchcorp, and these potential investors and does not take into account investment will be affected by many other factors beyond the control of objectives, financial situation or needs of any particular investor. Touchcorp. Such statements involve risks and uncertainties and These should be considered, with or without professional advice no assurance can be given that actual results will be consistent when deciding if an investment is appropriate. Persons needing with these forward-looking statements. The forward looking advice should consult their stockbroker, solicitor, accountant or statements made in this presentation relate only to events as other independent financial advisor. Touchcorp the date on which the statements are made. Touchcorp will not undertake any obligation to release publicly any revisions The release, publication or distribution of this presentation in or updates to these forward-looking statements to reflect events, certain jurisdictions may be restricted by law and therefore circumstances or unanticipated events occurring after the date of persons in such jurisdictions into which this presentation is this presentation except as required by law or by any appropriate released, published or distributed should inform themselves about regulatory authority. and observe such restrictions. Percentages and figures in this document may include rounding This presentation does not constitute, or form part of, an offer differences. TOUCHCORP LIMITED | 1 1
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