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A LEADING PROVIDER OF FINANCIAL TRADING SOLUTIONS FOR RETAIL CUSTOMERS Investor Presentation, Capital Conference November 2016

Transcript of A LEADING PROVIDER OF FINANCIAL TRADING SOLUTIONS FOR ... · A LEADING PROVIDER OF FINANCIAL...

Page 1: A LEADING PROVIDER OF FINANCIAL TRADING SOLUTIONS FOR ... · A LEADING PROVIDER OF FINANCIAL TRADING SOLUTIONS FOR RETAIL CUSTOMERS Investor Presentation, Capital Conference November

A LEADING PROVIDER OF FINANCIAL TRADING SOLUTIONS FOR RETAIL CUSTOMERS

Investor Presentation, Capital Conference November 2016

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DISCLAIMER The contents of presentation slides (the “Slides”) and the information which you are given at the accompanying verbal presentation including the talks given by the presenters, any question and answer session and any documents or other materials distributed at or in connection with the presentation (together with the Slides the “Presentation”) relating to TechFinancials (the “Company”) and its subsidiaries (the “Group”) have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (the “Act”). Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. The information contained in the Presentation is confidential and is being supplied in the United Kingdom only to (i) persons who have professional experience in matters relating to investments (being "investment professionals" within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "FPO")) or (ii) persons falling within Article 49(2) ("high net worth companies, unincorporated associations etc") of the FPO or (iii) persons who are otherwise permitted by law to receive it (all such persons being "relevant persons"). The information contained in the Presentation is not intended to be viewed by, passed on or distributed (directly or indirectly) to, any other category of persons. Any investment or investment activity to which the Presentation relates is available only to relevant persons and will be engaged in only with relevant persons. This Presentation must not be acted or relied upon by persons who are not relevant persons. No undertaking, representation, warranty or other assurance is given, and none should be implied, as to, and no reliance should be placed on, the accuracy, completeness or fairness of the information or opinions contained in the Presentation. The information contained in the Presentation is subject to completion, alteration and verification. The information contained in the Presentation has not been verified by Grant Thornton UK LLP, Northland Capital Partners Limited or Peterhouse Corporate Finance Limited. Capital Markets Limited. Save in the case of fraud, no liability (including in the case of negligence) is or will be accepted for such information by the Company, Grant Thornton UK LLP, Northland Capital Partners Limited or Peterhouse Corporate Finance Limited. Capital Markets Limited or any of their respective directors, officers, employees, agents or advisers or any other person. Information contained in the Presentation may not be distributed, published or reproduced or otherwise made available in whole or in part or disclosed by recipients to any other person. The distribution of any document provided at or in connection with the Presentation (including these Slides) in jurisdictions other than the United Kingdom may be restricted by law and therefore persons into whose possession any such documents may come should inform themselves about and observe any such restrictions. In particular, information contained within or provided by the Presentation (including these Slides) is not for distribution in or into the United States, Canada, Australia, the Republic of Ireland, Japan or South Africa or in any other country outside the United Kingdom where such distribution may lead to a breach of any legal or regulatory requirement. No securities commission or similar authority in Canada has in any way passed on the merits of the securities offered hereunder and any representation to the contrary is an offence. No document in relation to the Placing has been, or will be, lodged with, or registered by, The Australian Securities and Investments Commission, and no registration statement has been, or will be, filed with the Japanese Ministry of Finance in relation to the Placing or the Shares. Accordingly, subject to certain exceptions, the Shares may not, directly or indirectly, be offered or sold within Canada, Australia, Japan, South Africa or the Republic of Ireland or offered or sold to a resident of Canada, Australia, Japan, South Africa or the Republic of Ireland. Any failure to comply with these restrictions may constitute a violation of the securities law of such jurisdictions. The Securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered or sold within the United States or to, or for the account or benefit of, any US Person as that term is defined in Regulation S under the US Securities Act. The Company has not been registered and will not register under the United States Investment Company Act of 1940, as amended. The information contained in the Presentation does not constitute a prospectus or admission document and does not constitute, or form part of, any offer of, or invitation to apply for, securities nor shall it, or the fact of its distribution, form the basis of or be relied upon in connection with any contract or commitment to acquire any securities. Recipients of the information contained within the Presentation who are considering acquiring shares in the Company are reminded that any such purchase or subscription must be made only on the basis of the information contained in the admission document relating to the Company in its final form, which may be different from the information contained in the Presentation. The Presentation should not be considered a recommendation by the Company, Grant Thornton UK LLP, Northland Capital Partners Limited or Peterhouse Corporate Finance Limited. Capital Markets Limited or any of their respective directors, officers, employees, agents or advisers in connection with any purchase of or subscription for securities of the Company. Recipients of the information contained within or provided with Presentation (including these Slides) should note that Grant Thornton UK LLP, Northland Capital Partners Limited and Peterhouse Corporate Finance Limited. Capital Markets Limited (as an appointed representative of Citation Capital Management Limited) who are regulated and/or authorised in the United Kingdom by the Financial Conduct Authority are acting exclusively for the Company and no-one else in relation to the proposals set out in the Presentation and will not be responsible to any other person for providing the protections afforded to customers of Grant Thornton UK LLP, Northland Capital Partners Limited and Peterhouse Corporate Finance Limited. Capital Markets Limited or for providing advice to any other person in relation to the proposals set out in the Presentation. The information contained in the Presentation is confidential and may include price sensitive information and accordingly attendees at the Presentation should not deal in any securities of the Company before the information is made public. In agreeing to attend the Presentation, you have agreed to be treated as an "insider" in relation to the information to be disclosed at the Presentation. These Slides and, when given, the remainder of the Presentation contains or may contain forward-looking statements, which relate, inter alia, to the Group’s proposed strategy, plans and objectives. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Group to be materially different from such forward-looking statements. Accordingly, you should not rely on any forward-looking statements and the Group accepts no obligation to disseminate any updates or revisions to such forward-looking statements.

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Investor Presentation, Capital Conference November 2016

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WHO ARE WE? Established in 2009

Founders with backgrounds in High Tech and Forex

Developed a trading platform technology based on a proprietary pricing

engine

What We Provide A complete technology & service solution for online brokers to deliver

Binary & Forex trading platforms under their own brand

Investment History

2009-2014: Three rounds of private finance

March 2015: Listed on the London Stock Exchange AIM market (symbol: TECH)

Global Reach Over 130 employees in offices around the world;

Israel, Cyprus, China, Hong Kong, Japan & Ukraine

Investor Presentation, Capital Conference November 2016

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OUR MISSION

TechFinancials mission is to be a leader in the emerging day trading market through innovative technology that simplifies financial instruments.

Investor Presentation, Capital Conference November 2016

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WHAT DO WE DO? Binary Options High/Low, One Touch & Boundary instruments that allow the user to invest

and receive fixed returns depending on whether the market will be higher or

lower at expiration relative to the option strike price

Forex and CFDs Simplified currency pair and commodity trading that allows users to invest in

trades with no fixed expiry time. Returns vary with each market movement.

Users may control their investment through pre-defined Stop Loss and Take

Profit limits

Fixes Strike Options (Ladder) Strike price is fixed and the payout varies according to the current market

price. Developed to comply with JFSA and CFTC regulations

Investor Presentation, Capital Conference November 2016

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BINARY OPTIONS

https://www.youtube.com/watch?v=OW_30hiMcFo

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FOREX & CFDS

Investor Presentation, Capital Conference November 2016

https://www.youtube.com/watch?v=PrMfcspC-G8

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TECHFINANCIALS STRUCTURE

B2C In House Brands

Operating Retail Platforms

Including Joint Venture

with OptionFortune

B2B Technology Provider

of Trading Platforms

for Online Brokers

Delivering Binary Options

FX & CFD Trading

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MARKET OPPORTUNITY

* Estimated trading volume TechFinancials market research Sep 2016

** Finance Magnates Intelligence Report Q2 2016

Investor Presentation, Capital Conference November 2016

Global Binary Options market reach is c.$231m (daily) in trade volume*

Global Retail Forex market reach is c.$335Bn (daily) in trade volume**

Market Drivers:

Organic growth through established brands in Europe

Asia experiencing rapid growth

Entry into USA through regulated exchanges

Increased regulation will lead larger and better known financial organizations to enter

the retail trading market

TechFinancials technology is adaptable to different regulatory environments

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2016 GROWTH

Supported online brokers and increased software license revenues through organic growth

B2B

Penetrated new markets with high-growth potential e.g. Asia, and boosted global brand awareness

EXPANSION

Invested to bring new innovative trading products to strategic markets and customers

R&D

Leveraged new JV partnership that showed early promise

B2C

Supported and focused on regulated market requirements e.g. CySEC, CFTC, JFSA

REGULATION

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H1 2016 HIGHLIGHTS

Revenues in H1 2016 US$9.86 million (H1 2015: US$7.34 million) Core software licensing revenue increased by 34% to US$5.39 million (H1 2015: US$4.03 million)

EBITDA US$1.09 million

Trading platform revenues increased by 35% to US$4.47 million (H1 2015: US$3.31

million)

Gross Margins increased to 75% (H1 2015: 71%)

Gross Profit increased by 42% to US$7.36 million (H1 2015: US$5.18 million)

US$1 million Net Cash generated in H1 2016 from operating activities

Strong Cash Position of US$3.9 million (31st December 2015: US$3.4 million)

Investor Presentation, Capital Conference November 2016

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2017 FORECAST (US$M)

Investor Presentation, Capital Conference November 2016

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WHY TECHFINANCIALS?

2016: Delivering Results to the Market

B2B organic monthly software revenues B2C JV showing strong returns

2017: Growing for the Future

Expansion into new markets: Asia, USA Innovation – bringing new products to retail traders

Partner with TechFinancials - A Solid Platform, A Solid Investment.

Investor Presentation, Capital Conference November 2016

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CONTACT

Jeremy Lange – Investor Relations

E-mail:

[email protected] www.TechFinancials.com

Investor Presentation, Capital Conference November 2016