SQID Technologies Ltd
‘Optimizing the way business wants to make payments’
Simple and flexible in a
single solution….
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This is a briefing to shareholders of SQID Technologies Limited.
This information session should not be considered financial advice and
is provided subject to the disclaimer on the last slide of this presentation.
You should always seek your own independent financial advice.
AGM - 30 November 2017
SQID delivers … relevancy in payment solutions
Apps and online transactions now demand:
• Shared payment solutions• Flexible payment solutions• Simple payment solutions• Collaborative payment solutions• Customer centric payment solutions
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SQID removes …merchant roadblocks by…
• Connecting directly to the banking system which is slow and complex to navigate.
• Connecting customers to cost effective transactions.• Connecting sub-merchants to accelerate sales.• Connecting payment sharing networks to
collaboratively accelerate business opportunities.3
SQID creates …agile payment solutions through...
• Multiple payment channels to deliver one settlement solution – reduced admin costs.
• Flexible APIs for eWallets, Direct Debits, Card Payments, Merchant Signups.
• Flexible payment structures that create shared revenue and new markets for partners.
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SQID …streamlines operations by ...
• Strategically planning to remain competitive and relevant.• Building real business value for shareholders and merchants,
not dreams.• Executing operations in an agile manner to support strict cost
control and minimize overheads. • Demonstrating a consistent baseline growth.• Ensuring SQID’s technology and people can scale to meet
demands as the business grows.• Emphasising delivering results that are transparent and
measurable.5
SQID ...streamlines the merchant experience by...
• Listening to what merchants need and want.• Delivering a fluid and responsive team response.• Effectively communicating the way SQID’s
technology meets merchant needs - how, when and where they need to be met.
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SQID …successfully applies its technology …
• Payments Manager
• VPOS, Payment Pages, Direct Debits, Analytics, Alerts, SMS marketing
• Fraud detection, management and alerts
• API development and integrations
• Card payments, Direct Debits, eWallet, signup7
SQID is delivering REAL results…
Growth has been demand driven not sales driven.
Real results...
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FY17YTD Oct$’000
FY16$’000
Revenue $1,029 $2,233
OperatingProfit
$161 $405
* estimate
SQID offers a unique value proposition…
Flexibility
Sim
plic
ity
A responsive and agilepartner focused, simple and flexible settlements solution for multi channel payments.
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SQID ...how big is the opportunity?
Juniper Research April 2016
“The worldwide mobile payment volume in 2015 was 450 billion U.S. dollars and is expected to surpass 1 trillion U.S. dollars in 2019.”
Statista.com 2016
‘digital commerce market is set to increase from $4.9 Trillion in 2015, to just over $8 Trillion by 2020’
‘Australian debit + credit card payments in 2015 = $518.4 Bnfrom 6.357 Bn transactions.
APCA.com.au
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SQID ...Where are the target markets?
B2E*Partners with Enterprise scale solutions: Tolling SolutionsParking SolutionsSharing Community Solutions
B2B*Partners with SME† scale solutions:
SaaS Vendors eWallet ProvidersShared Payment ProvidersLocation services
Global
Cryptocurrency, Multicurrency and International settlements are growth opportunities.
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B2B73% rate - faster payment +
better cash flow as key benefits of accepting cards† † Deliotte B2B Payments 2015 Australia and New Zealand Research
*Existing partners are represented in both the B2B and B2E channels
SQID acquires customers by…
Referral Networks• Registered referral
partners that receive a fee share
• Add diversity to SQID’s outsourced sales model
• App developers, advertising sales, digital marketers, gateways, banks, etc
Strategic Partners• Partners with B2B clients
requiring a payment connection for the partner’s service
• Partners engage SQID with the broader shared payment community .
• Examples are: ecommerce web developers, IT solutions vendors (SaaS and ERP), franchisors.
Direct Engagement• Directly approach SQID to
solve their payment problems in 2 ways….
• 1 - Web enquiries – mostly Google search driven
• 2 - Strategic partner targeting – outbound contact with targets as a solution is developed for a segment of the market.
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SQID ...how we make money?Sales Transaction Funds Flow Chart (typical example only)
Fees taken before settlement, so no debtors.
*Merchant, Partner and SQID fees vary depending on the transaction volumes and card types. The diagram is for illustration purposes.
$100 Payment received for products or services
$97.50* Settled to Merchants Account
$0.40*Split to Partner
$2.10* SQID
Revenue13
SQID direction for FY 2018…
• Strategic growth in transaction volumes through partner, affiliation and shared community engagement models
• Increased engagement with app developers looking for innovative payment solutions
• Increased compliance and prudential reserves to secure and protect operational efficiencies
• Consolidation of gains made in 2016 through leveraging existing merchant relationships
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SQID answers your questions...
Shareholder
Frequently Asked Questions
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SQID Will this presentation be available?
• Yes, it will be added to the online share register and SQID website.
• Shareholders can download the presentation and other communications from the SQID website and the share register system.
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SQID When are we listing on the share market?
What we have determined:
• The Board has investigated ASX and NSX but fees and compliance requirements are very high.
• The company’s continued strong growth continues to see the value of the business increasing rapidly.
What we are looking at:
• The Board has applied to ASIC for permission to operate a Low Value Market (LVM) for SQID shares on the SQID website.
• Normal transfers outside the LVM can still occur.17
SQID How does the Low Volume Market (LVM) work?
• LVM (if approved) will allow up to 1oo trades or $1.5M over a 12 month period.
• De-identified Buyers and Sellers are listed on the SQID website.
• You can request the contact details of buyer or sellers.
• Buyers need not be existing shareholders.
• Complete the transaction by completing a transfer form.18
SQID When will the company pay a dividend?
• Retained profits are necessary to reduce the capital required to maintain our achieved growth.
• Dividends are not realistic until the business matures commercially.
Benefits available to shareholders: • Lower capital requirements means less new share issues and
hence less dilution of existing shareholders.19
SQID What is the next key big project?
Strategic partnerships are integral to SQID’s future growth opportunities rather than individual projects.
• Major projects are more likely to expose SQID to unnecessary risk with less guarantee of return on investment.
• SQID has established a low risk diverse merchant base that has demonstrated a higher return on investment of resource and effort.
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SQID …What will the transition process look like?
The development of a transition plan that ensures:
• Management is well supported through transition
• An agreed transition timeline is established
• Knowledge base is shared through documentation of procedures and processes
• Clear stakeholder communication and support
• Continuity at Board level for as long as required.21
SQID: introducing our operational team...Robyn Gunnis – Chief Operating OfficerRobyn was formerly the inaugural General Manager of Fairfax Regional Digital Media and was responsible for the product development, sales, marketing, training and content over 180 regional, rural and community websites and m-sites. Robyn brings her insights and experience from top tier media companies and consultancy experience with SME’s supporting them to integrate their traditional and digital business models. Robyn has been instrumental in demonstrating the capability of SQID’s platform, and how it can enable businesses to make sales directly from multi-media platforms. Robyn expertise has enhanced SQID’s brand recognition and attracted new business through targeted content marketing.
Lee Horobin- CFO - B.Bus (Acctg)(Hons), CPA, MBA (Mkg)Lee Horobin has over 15 years executive-level experience in finance & governance across varied industries including agriculture,biotechnology, construction, building services, commercial property management, and petroleum. Lee has performed these roles invarious organisation types from listed international corporations, through to large and small private companies. Lee has vast experiencein statutory reporting across multiple jurisdictions, including the production of annual reports, the designing of meaningful internalboard and management reports, as well as policy development. Lee’s expertise extends to board meeting organisation and minuting,governance and policy review and development, financial modeling, contract negotiation and management, complete MIS projectmanagement, system efficiency, and process improvements. Lee has completed the AICD Directors course and is a Chartered Secretary.
Paul McLean – Development Team Lead - BIT(SoftEng)Paul McLean has 9 years’ experience in the software development industry, with a particular focus on web technologies. He began hiscareer in medical IT, developing a complete ERP/CRM solution to cope with the exponential growth of over 200 medical centres acrossAustralia. Today his roles involve the full stack development of the SQID Payments core payments and settlements services, along withtheir business, marketing and merchant tools.
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SQID ….more questions? Let us know
SQID Technologies Limited- Providing simple, flexible, bank agnostic solutions for a changing payments ecosystem….
Peter Hall – ChairmanEmail: [email protected] Mobile: 0402 441 610
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SQID Technologies –‘Optimizing the way business wants to make payments’
SQID DisclaimerThe information contained in this Document or subsequently provided to the recipient whether orally or in writing by, or on behalf of the Company or any of their respective related bodies corporate or any of their respective directors, officers, employees, agents, representatives and advisers is provided to the recipient on the terms and conditions set out in this notice. The information in this presentation is being provided to the recipient solely for the purpose of information to shareholders of the Company. This Document provides a summary of the main features of the Company. It has been prepared without taking into account any investing shareholder's objectives, financial situation or needs. Shareholders should read this Document carefully and assess whether the information is appropriate for them in respect of their objectives, financial situation and needs, and seek professional advice, if necessary. This Document does not purport to contain all the information that a prospective investor may require. In all cases, interested parties should conduct their own investigation and analysis of the Company and the data contained in this Document. The delivery of this Document does not under any circumstances imply that the affairs or prospects of the Company or any information affecting it have been fully or correctly stated in this Document or have not changed since the date of this Document or since the date at which the information is expressed to be applicable. No responsibility or liability (including in negligence) is assumed by the Parties for updating any such information or to inform the recipient of any new information of which the Parties may become aware. This presentation may include forecast financial information based on the best estimate assumptions of the Company. The basis of preparation and presentation including the financial forecast information, to the extent relevant, is consistent with the basis of preparation and presentation for historical information. The forecast financial information presented in this presentation is unaudited. This presentation may include forward looking statements that involve risks and uncertainties. Any forward looking statements are based on the Company’s current expectations of future events.This document is intended for existing shareholders of the Company and is not an offer or invitation to invest.
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