Pushpay Holdings Limited | Annual Shareholders' Meeting 2015 - NZX
Pushpay Holdings Limited | Annual Shareholders’ Meeting 2015
Important notice This presentation is given on behalf of Pushpay Holdings Limited (Pushpay) – Company number: 3481675 | NZSX:PAY. Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Pushpay; • should be read in conjunction with, and is subject to, Pushpay’s Annual Report, market releases, and information published on Pushpay’s website www.pushpay.com; • includes forward-looking statements about Pushpay and the environment in which Pushpay operates, which are subject to uncertainties and contingencies outside of Pushpay’s control – Pushpay’s actual results or performance may differ materially from these statements; • includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and • may contain information from third parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information. All information in this presentation is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise.
Chairman’s address Bruce Gordon
The past year
31 December 2014 targets achieved
$4m standby funding facility secured
69.2% increase in ACMR over the quarter
2015
36
MONTHS
Graham Shaw and Peter Huljich join the Board Touch ID and card scanning introduced to App
31 March 2015 target exceeded
$13.8m fully underwritten Entitlement Offer completed Migrated listing to the NZX Main Board Received R&D Project Grant from Callaghan Innovation
Target of $100m ACMR within 36 months
Governance
Audit completed on 27 May 2015
12 board meetings conducted in the past year
All committees have met in accordance with their charters
CEO’s presentation Chris Heaslip
FY2015 performance highlights
996 Total Merchants
68 Staff Headcount
530.4
%
increase over the year
195.7% increase over the year
>$200m Annualised Monthly Payment Transaction Volume
$4.32m Cash and available funding lines
>733.3% increase over the year
57.7% increase over the year
FY2015 performance highlights
$491 per month Average Revenue Per Merchant (ARPM)
>95% Annual Revenue Retention Rate (Retention)
Less than 12 months Months to Recover Customer Acquisition Cost (CAC)
Currency invented around 700 BC
£
¥
€
Cheques invented around 1762
Cheque usage has halved since 2003 Cheques paid in billions of US Dollars 37.3 30.5 24.5 18.3
2003
2006
2009
Source: Federal Reserve System (2013, December). The 2013 Federal Reserve Payments Study
2012
Credit cards invented around 1950
C C Crreerdedi itt t dC i Caa C rdrd
S. Ex D. F pir itz es ge Ex 31 D rald pir es ecem 31 Exp ires Decber 1 31 D em 95 ece ber 1 mbe 19 r 1951 51
The way we make payments has not changed since the 1950’s.
Ba
nk
Ch
eq ue B
oo k
Churches and Non-Profit Organisations have not kept up with technology
Credit itt CrreeddCard i C C Caarrd S. D. Fitzgerald Expires 31 December 1951 51 1 ber 19 er 195 Expires 31 Decem ecemb D 1 3 s Expire
13%
60%
Last Christmas season Amazon had 60% of customers shop using a mobile device
Churches that offer online giving had just 13% of revenue given online
Sources: Amazon.com, Inc (2014, December). Amazon Prime Experiences Another Record-Breaking Holiday Season Dunham + Company (2015, April). Study shows churches lag behind in facilitating online giving
Amazon and church e-commerce transactions Amazon e-commerce transactions
100%
Amazon mobile transactions Church e-commerce transactions
60%
The opportunity
13% Sources: Amazon.com, Inc (2014, December). Amazon Prime Experiences Another Record-Breaking Holiday Season Dunham + Company (2015, April). Study shows churches lag behind in facilitating online giving
Not giving
Cash and cheques
Digital payments
Recurring payments
Product overview Eliot Crowther
Fee revenue
Subscription fees
Volume fees
Based on the size of the Merchant (in the case of the Faith Sector, this is calculated as a multiple of total church attendees or total number of donations processed).
Based on payment transaction volume (in the case of the Faith Sector, this is calculated as a percentage of total donations).
Case study Average increase in giving per person per month $146.11
$397,268.13
$90.62
Increase in donations per annum
$20.03 Consistent givers
Intermittent givers
New givers
$10m to $100m Merchant ACMR Merchant ACMR Forecast Merchant ACMR
$1m Merchant ACMR
$100m Merchant ACMR
$10m Merchant ACMR
Source: Pushpay Holdings Limited (2015, August). Pushpay targets Merchant ACMR of $100m within 36 months
Market opportunity in the US
314,000 Faith Sector
1.4 million Non-Profit Organisations (NPOs)
Sources: US Census Bureau. (2012). Statistical Abstract of the United States: 2012 Urban Institute (2014). The Nonprofit Sector in Brief 2014: Public Charities, Giving, and Volunteering Note: Numbers rounded
5.6 million Enterprises (5.6 million SMEs and 17,671 Corporate Organisations)
Questions
Resolutions
Resolutions
Resolution 1: That Bruce Gordon be re-elected as a Director of Pushpay.
Resolution 2: That Christopher Huljich be re-elected as a Director of Pushpay.
Resolution 3: That Graham Shaw be elected as a Director of Pushpay.
Resolutions Resolution 4: That the Board be authorised to fix the fees and expenses of Deloitte as auditor. Resolution 5: That the issue on 5 June 2015 of 3,578,769 ordinary shares in Pushpay for $3.85 per share pursuant to Pushpay’s pro-rata nonrenounceable entitlement offer and the underwriting arrangements in respect of that offer be approved and ratified for all purposes, including for the purposes of NZX Main Board Listing Rule 7.3.5(c).
Pushpay Holdings Limited | Annual Shareholders’ Meeting 2015
Important notice This presentation is given on behalf of Pushpay Holdings Limited (Pushpay) – Company number: 3481675 | NZSX:PAY. Information in this presentation: • is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in Pushpay; • should be read in conjunction with, and is subject to, Pushpay’s Annual Report, market releases, and information published on Pushpay’s website www.pushpay.com; • includes forward-looking statements about Pushpay and the environment in which Pushpay operates, which are subject to uncertainties and contingencies outside of Pushpay’s control – Pushpay’s actual results or performance may differ materially from these statements; • includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance; and • may contain information from third parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information. All information in this presentation is current at the date of this presentation, unless stated otherwise. All currency amounts are in NZ dollars unless stated otherwise.
Chairman’s address Bruce Gordon
The past year
31 December 2014 targets achieved
$4m standby funding facility secured
69.2% increase in ACMR over the quarter
2015
36
MONTHS
Graham Shaw and Peter Huljich join the Board Touch ID and card scanning introduced to App
31 March 2015 target exceeded
$13.8m fully underwritten Entitlement Offer completed Migrated listing to the NZX Main Board Received R&D Project Grant from Callaghan Innovation
Target of $100m ACMR within 36 months
Governance
Audit completed on 27 May 2015
12 board meetings conducted in the past year
All committees have met in accordance with their charters
CEO’s presentation Chris Heaslip
FY2015 performance highlights
996 Total Merchants
68 Staff Headcount
530.4
%
increase over the year
195.7% increase over the year
>$200m Annualised Monthly Payment Transaction Volume
$4.32m Cash and available funding lines
>733.3% increase over the year
57.7% increase over the year
FY2015 performance highlights
$491 per month Average Revenue Per Merchant (ARPM)
>95% Annual Revenue Retention Rate (Retention)
Less than 12 months Months to Recover Customer Acquisition Cost (CAC)
Currency invented around 700 BC
£
¥
€
Cheques invented around 1762
Cheque usage has halved since 2003 Cheques paid in billions of US Dollars 37.3 30.5 24.5 18.3
2003
2006
2009
Source: Federal Reserve System (2013, December). The 2013 Federal Reserve Payments Study
2012
Credit cards invented around 1950
C C Crreerdedi itt t dC i Caa C rdrd
S. Ex D. F pir itz es ge Ex 31 D rald pir es ecem 31 Exp ires Decber 1 31 D em 95 ece ber 1 mbe 19 r 1951 51
The way we make payments has not changed since the 1950’s.
Ba
nk
Ch
eq ue B
oo k
Churches and Non-Profit Organisations have not kept up with technology
Credit itt CrreeddCard i C C Caarrd S. D. Fitzgerald Expires 31 December 1951 51 1 ber 19 er 195 Expires 31 Decem ecemb D 1 3 s Expire
13%
60%
Last Christmas season Amazon had 60% of customers shop using a mobile device
Churches that offer online giving had just 13% of revenue given online
Sources: Amazon.com, Inc (2014, December). Amazon Prime Experiences Another Record-Breaking Holiday Season Dunham + Company (2015, April). Study shows churches lag behind in facilitating online giving
Amazon and church e-commerce transactions Amazon e-commerce transactions
100%
Amazon mobile transactions Church e-commerce transactions
60%
The opportunity
13% Sources: Amazon.com, Inc (2014, December). Amazon Prime Experiences Another Record-Breaking Holiday Season Dunham + Company (2015, April). Study shows churches lag behind in facilitating online giving
Not giving
Cash and cheques
Digital payments
Recurring payments
Product overview Eliot Crowther
Fee revenue
Subscription fees
Volume fees
Based on the size of the Merchant (in the case of the Faith Sector, this is calculated as a multiple of total church attendees or total number of donations processed).
Based on payment transaction volume (in the case of the Faith Sector, this is calculated as a percentage of total donations).
Case study Average increase in giving per person per month $146.11
$397,268.13
$90.62
Increase in donations per annum
$20.03 Consistent givers
Intermittent givers
New givers
$10m to $100m Merchant ACMR Merchant ACMR Forecast Merchant ACMR
$1m Merchant ACMR
$100m Merchant ACMR
$10m Merchant ACMR
Source: Pushpay Holdings Limited (2015, August). Pushpay targets Merchant ACMR of $100m within 36 months
Market opportunity in the US
314,000 Faith Sector
1.4 million Non-Profit Organisations (NPOs)
Sources: US Census Bureau. (2012). Statistical Abstract of the United States: 2012 Urban Institute (2014). The Nonprofit Sector in Brief 2014: Public Charities, Giving, and Volunteering Note: Numbers rounded
5.6 million Enterprises (5.6 million SMEs and 17,671 Corporate Organisations)
Questions
Resolutions
Resolutions
Resolution 1: That Bruce Gordon be re-elected as a Director of Pushpay.
Resolution 2: That Christopher Huljich be re-elected as a Director of Pushpay.
Resolution 3: That Graham Shaw be elected as a Director of Pushpay.
Resolutions Resolution 4: That the Board be authorised to fix the fees and expenses of Deloitte as auditor. Resolution 5: That the issue on 5 June 2015 of 3,578,769 ordinary shares in Pushpay for $3.85 per share pursuant to Pushpay’s pro-rata nonrenounceable entitlement offer and the underwriting arrangements in respect of that offer be approved and ratified for all purposes, including for the purposes of NZX Main Board Listing Rule 7.3.5(c).
Pushpay Holdings Limited | Annual Shareholders’ Meeting 2015
