#1Wirecard AG Analyst Day 2014 Munich, 29th September 2014 wirecard#2LEELO La ******* THE B BENDR CRORE PR FOOD #6" HAY ITPIRIT OF HE ED DEN RED D BER EFE DBS BS FEF FEES B FREEd #g BUEN DOND 323***** F MAHES Wirecard in Asia Pacific Introduction Monica Pranata / Fook Sun Ng / Susanto Chandra#3Wirecard in Asia Pacific Wirecard's Presence in Asia Pacific 2014 Wirecard AG Singapore (Head Office Asia Pacific) WD Asia Pte Ltd Systems@Work Trans Infotech PaymentLink ■ ■ Indonesia ■ Vietnam wirecard ■ ■ PT Prima Vista Solusi PT Aprisma Indonesia Malaysia ■ Trans Infotech Vietnam WD Malaysia Systems@Work Korvac Malaysia Myanmar WD Myanmar Ltd (in setup) Australia Wirecard Sales Int. Australia Branch (in setup) 3#4Wirecard in Asia Pacific Portfolio Overview ■ ■ ■ ■ PAYMENT SERVICE PROVIDER Multi-channel payment processing platform Support for dozens of payment methods on a single platform Integrated fraud and risk management Comprehensive reporting and analytics functionality 0 BUSINESS INTELLIGENCE 2014 Wirecard AG JION OROKOR WOROLON 20 ■ MERCHANT SERVICES PROVIDER ISO/MSP agreements with leading Acquirers in Singapore Merchant Recruiting & Merchant Management www HOMON IHMI ACQUIRING AND ISSUING PROCESSOR ▪ State-of-the-art acquiring & issuing processing SaaS platform Comprehensive Managed Services Offering (merchant statement generation, merchant settlement, dispute management, ...) ATM driving, terminal management, network operations,... wirecard PAYMENT TECHNOLOGY & OUTSOURCING SERVICE PROVIDER ▪ Multi-channel white label payment gateway & switching solutions ▪ Transaction & Internet Banking Software Solutions Cash Management Software Solutions ■ Point-of-Sale Software & Infrastructure Solutions ▪ Mobile payment platform and smartphone apps ▪ Mobile acceptance solutions incl. hard-/software €12,10 4#5Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Singapore (1/2) ■ ■ CONNECTED & COSMOPOLITAN 5.5 million population, 1.25 million foreigners, high standards of living 156% mobile penetration, 79% homes with computers 70% Internet users (adults) 2014 Wirecard AG ■ PRO BUSINESS HUB ENVIRONMENT No. 1 country "Ease of Doing Business" Doing Business 2013, World Bank World's No. 2 and Asia's No.1 for best intellectual property protection Global Competitiveness Report 2012 - 2013, the World Economic Forum ■ > 7,000 Multi-national Corporations 60% with regional responsibilities ▪ >37,000 International Companies 2013 RANK 1 2 3 4 5 6 7 ECONOMY SINGAPORE HONG KONG SAR, CHINA NEW ZEALAND UNITED STATES DENMARK NORWAY UNITED KINGDOM STRONG ECONOMIC PERFORMANCE I No. 1 city with the best investment potential BERI Report 2011-11 Top 2 most competitive city in the world Global Competitiveness Report 2012 - 2013 by the World Economic Forum ▪ Top 3 in the world for foreign trade and investment Globalisation Index 2012 2013 GDP: US$295 billion 2010 GDP: 5$304 billion (US$236 billion) Otnars Wholesale & Rail Tra 17% 18% Construction 3% 12% 22% 14% 12% Transport & Communications Manufacturing Firvinial S Ruslensa Services ■ 2010 GDP growth: 14.5% 2011 GDP growth: 4.8% B.2011) U$1.00: 9612001 C: Kamelyhengels bom rynkudy al Ungarana fili PAYMENT INNOVATIONS ENVIRONMENT I wirecard ~ 4m debit, > 5m credit cards, > 12m prepaid cards issued ~ ~ 80k PoS for credit cards, 80k PoS for debit/prepaid cards Cashless (& contactless) Public Transportation Payments Ecosystem ▪ Significant ,,online" (eCommerce & mobile) affinity & adoption ■ Numerous Mobile & Contactless Payments Initiatives "Singapore's ... #1 position in the MasterCard Mobile Payments Readiness Index is a testament to the country's strengths ...." THE FA card EN A PAGAL Hora New http://mobilereadiness.mastercard.com/the-index/ 5#6Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Singapore (2/2) WOOHOO! NO MORE TOP-UPS! $1.00 6:05-7-25 $2.00 ERIP IN OPERATION: No CARD NEEDED IN IU 0 1 Singapore Toll Collection 2014 Wirecard AG Svet man ska Money Send MasterCard Moneysend Self Service Payment Kiosk ACCEPTED HERE pins Ca epins rewards TAP HERE d ACCEPTED HERE link NETS Contactless Card & Loyalty programs wirecard Multi-lane Retail www. Sumar my link Mobile 13:27 40 Tap your ez-link card to the back of your phone Preferred Card MasterCard Topup stored value card with NFC phone 6#7Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Indonesia (1/2) ARCHIPELAGO MALAYSIA SUMATRA Dive The World KALIMANTAN talpens Bur JAVA KOMODO Jakarta அpyasa INDIAN OCEAN BALI LOMBOK SUMBAINA Manad SULAWESI 2014 Wirecard AG FLORES PASA ALOR PACIFIC OCEAN upang HALMAHERA BANDA ISLANDS EAST TIMOR 18,307 islands Topper RIAN JAYA USTRALIA ▪ Mobile subscribers ■ Credit card issued ▪ Debit/ATM card issued ▪ No of ATM ▪ No of POS ~ 285 million ~ 14.5 million ~ 20.8 million >20,000 ~ 500,000 POPULATION Indonesia Population 2014 250585668 Population Rank: 4 % of World Pop: 3.49% 250,585,668 people wirecard ■ INTERNET USERS Social Network Users and Penetration in Indonesia, 2011-2014 2011 2014 2012 52.1 Social network users (millions) 34.4 -% change 2013 67.1 28.8% 79.2 51.4% 51.6% 18.0 -% of internet users 87.5% 92.3% 94.8 80.0% 14.0% 21.0% 26.8% 31.3 -% of population Note: internet users who use a social network site via any device at least once per month Source: eMarketer, Feb 2012 95M internet users Emerging country, growing middle-class work-force Government & banks initiatives towards cashless society ▪ Continued growth in POS, mobile & internet banking Opportunities in ecommerce, mobile payment & security 7#8Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Indonesia (2/2) JUG Network Controller, Encryption & Key Management 2014 Wirecard AG VerFore 00000 00000 VX520 O 00000 0000 ex Biometric Microbanking Solution Mini ATM & Bill Payment on POS ANZ bii CIMB NIAGA Has + BCA RAKA ve BNI LASEBLIOPIN CIMB BANK Com de www NORME FAARING BUSINESS wirecard Cash Management & Internet Banking PRIMEMOBILE STUDIO 1002 VICE SOFTWARE BUILDER P TEL Mobile Banking 00#9Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Vietnam (1/2) POPULATION Myanmar (Burma) of Bengal Thailand Gulf of Thailand South China Sea Vietnam Philippines Malaveia 89.7 million (2013) 14th largest population ▪ GDP Growth ▪ Domestic card issued ▪ International cards ■ No of ATMs ■ No of EDCs 2014 Wirecard AG MOBILE PHONE & SMARTPHONE SUBSCRIBERS $ Mobile Phone: 121.1 million Smartphones: 37 million 8th highest number of mobile subscribers - 5.25% ~ 55 million ~ 5 million ~ 18,980 units ~ 149,000 units 3G SUBSCRIBERS ■ 3G wirecard 24 million (25.4% growth) INTERNET PENETRATION 40 million (2014) 40% of online population aged 15 to 24 5th highest Internet Penetration in SEA ▪ Advancement in e-banking services Opportunities for e-commerce & m-commerce: Emerging trend of online shopping and new media + significant investment in communications infrastructure ▪ Mobile growth fueled by domestic telcos who incurred infrastructure costs to keep prices low for users ▪ State Bank of Vietnam's goal to increase number of POS terminals and mPOS 9#10Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Vietnam (2/2) Mpos Solution 2014 Wirecard AG CHAO PRIMEMOBILE STUDIO Ⓡ Ta Mobile Banking 7176 ACCEPTED HERE @pins ATM Card Payment TAP HERE wirecard Contactless Card & Loyalty programs [$] DIV Bill Payment 10#11wirecard Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Malaysia (1/2) " I CARD PENETRATION EE 4.9 cards per individual (Country with highest card penetration) Population ~ 29 Million ■ Internet Users ~ 66% ▪ GDP Growth - 4.7% (2013) ▪ Mobile penetration ~ 140% (47% Malaysians own >1 mobile) 50.5 mil (2013) ~ 15m to 18m ~> 10m Payment cards ▪ Debit card ■ Credit card TOTAL ASSETS OF DOMESTIC & FOREIGN BANKS 2014 Wirecard AG BANK RAKYAT AFFINBANK بنات امارات Bank Muamalat Bank Islam Hong Leong Bank AmBank Group A EON BANK GROUP ALLIANCE BANK citibank Bumiputra Commerce SOUTHERN Bank Berhad PUBLIC BANK ~ $615 billion ■ ■ HSBC Maybank UNITED OVERSEAS BANK Standard Chartered S OCBC Bank UNITED OVERSEAS BANK RHB SMARTPHONE USERS $ ▪ 3rd largest economy in SEA. Newly industrialised market economy, relatively open Increasing transaction values at POS terminals & ATMS - Rising consumer preference for cashless transactions Opportunities for contactless technology >10 million (3G subscription) 11#12Wirecard in Asia Pacific Key Markets & Innovative Market Solution Highlights Malaysia (2/2) Touch nGO Topup Services 2014 Wirecard AG MOL Money Online TM Cash acceptance in topup and payments UnionPay 银联 UnionPay Acquiring wirecard 10. globalpayments Terminal Management Services 12#13Wirecard AG The future of mPayment Christian von Hampe Bonten Bywaters VMPK090 wirecard#14The future of mPayment The mobile is converging the channels ...AND CHANGING THE IN-STORE EXPERIENCE % Smartphone Owners Performing Task in Physical Retail Store Source: comScore MobiLens, US, 3mo Avg ending Dec 2011 6% Checked product availability Researched product features Found coupons or deals Compared product prices Found store location Sent picture of product to.. Scanned a product barcode Texted or called friends/family.. Took picture of a product comSCORE. 2014 Wirecard AG ⒸcomScore, Inc. Proprietary. 0% 15 5% 9% 10% 10% 12% 13% 17% 18% 20% 22% 15% 20% 25% wirecard 14#15PAYING WITH THE MOBILE WILL BECOME THE STANDARD Kartendetails Geld senden > Transaktionsübersicht 719 F > 1 4 H 0 Zahlung tätigen 8 Ju 2,98 € Vertugbar ⒸA 14:01, 19.11.2013 5ťk 2 AB OK Aufladen IPP350 VISA 10 SmartPass 0A 14:20 SAMSUNG Florentiner Verfahrung mit Cranberries und za Mit Zartbitter Schoko oder Weißer Schokol#16WITH NFC AS THE INDUSTRY STANDARD FOR MOBILE PAYMENT AT THE POS. 492#17Mobile payment solutions enable merchants to generate significant value throughout the purchase journey: before, during, and after payment#18The future of retail is bright Value Added Services are key to drive adoption and usage: Loyalty and Coupouning ▪ Online Payment Interfaces + Virtual cards for secure e-commerce shopping Request money from friends and relatives ▪ Person-to-Person transfers ▪ and more to come ... Seamless mobile customer experience#19The future of mPayment Mobile Payment Solution: Behind the Scenes Mobile Network Operator Payment Application HA Tata Testa-de Wallet © 2014 Wirecard AG | CW MNO-TSM* Mobile Over-the- air-Server Mobile Sign-Up Service Provider Trusted Service Manager** wirecard Cardholder Service Consumer Accounts & Cards Platform Couponing and Loyalty *MNO-TSM Management of the SIM-Card - includes a secure access management **SP-TSM Guarantees a secure and smooth connection between the Issuer and the NFC-Smartphone wirecard Issuing Processing Host VISA '((( MasterCard 19#20What will drive usage? Use cases, use cases, use cases....#21Transport for London and Vodafone SmartPass* fully enabled by Wirecard technology and issuing services * 3.1 5#22The future of mPayment "PAYMENT IS AT YOUR FINGERTIPS" ORakuten.de m-commerce wirocard O'zapft is! Das Rakuten Oktoberfest Special Di -67% Erkunde den Marktplatz MOTIN bisa 75% © 2014 Wirecard AG be 40% e-commerce APIs APIS Orange Cash VISA my account 10 000,50€ >>))) prêt à paye + recharger □ payer en ligne recevoir 10.15 NFC APIs POS VISA 1 23 4 78 mpass 01 ttps//mpass wirecard.com C 5 6 9 AAMD 1 → Ihre Handynummer Geen anderen und bestatigen Sie diese mit dem Verifizierungscode, den Sie per SMS 0 de Buchstaben in der angezeigten 00 In-app 1 %#23Internet technologies will increasingly determine payment functionalities in specific sales channels in the future. Wirecard is driving this trend. Dr. Markus Braun, CEO, Wirecard AG 1852#24Wirecard AG The Future of Retail Jörn Leogrande Bywaters VM44090 wirecard#25The status quo New technologies are changing the ways of Point of Sale-business: mPOS ▪ Tokenization ■ Bluetooth Low Energy Big Data wirecard#261. mPOS A new le level or worldwide merchants P Asyl teilte mit, EL Aufgrund jedoch lediglic im Parlarne en Zone lie rurteilt Italien ckführungen of für Menschenrech 23. Februar. Der Eur schaut worden. Da BALZAC COFFEE SUNDAY, 02/15/2012-14:14 Tramont 1234 4:20 PM Receipt Share t 15.40 € O willens. Das Vorhaben der Verk ligion und der bunten alkerungsgruppen, deren Be erbliebenen, sonders der Schuld nich nicht verhindern gerieten und ten Mor en Si- ung nicht durch staatliches Durch cendet wurde, sondern erst Selbstmorde der bis zuletzt anzlerin war die einzig Tater. Die feierliche te: der Staat war sie sel- usländischer Herkunft, der ganzen Gesell- h auch sich selbst, heren Bundespräsi politischen Ver Di Frage te sich da zum der demokratische schon mit der Zulas Lande nicht zu Hause ten, nur wed ihre Eltern fremden Land kummen".#27Wirecard Card Reader Solution customer case study: bijlipay SAMSUNG New Payment 750.00 3 items Follow instructions displayed on terminal 15:47 age of 0 OK OUN 15 PosMate Smart 2 6 8 * # O A 2892 /15 VISA#282. Tokenization Pay-by-App by Wirecard P Asyl teilte mit, EL Aufgrund jedoch lediglic im Parlame nen Zone lie rurteilt Italien ckführungen of für Menschenrech 23. Februar. Der Eur schaut worden. Da BALZAC COFFEE SUNDAY, 02/15/2012-14:14 Tramont 4:20 PM Receipt 1234 15.40 € Share t O willens. Das Vorhaben der Verk ligion und der bunten alkerungsgruppen, deren Be erbliebenen, sonders der Schuld nich nicht verhindern gerieten und ten Mor en Si- ung nicht durch staatliches Durch cendet wurde, sondern erst Selbstmorde der bis zuletzt anzlerin war die einzig Tater. Die feierliche te: der Staat war sie sel- usländischer Herkunft, der ganzen Gesell- h auch sich selbst, heren Bundespräsi politischen Ver Di Frage te sich da zum der demokratische schon mit der Zulas Lande nicht zu Hause ten, nur wed ihre Eltern fremden Land kummen".#29wirecard Pay-by-App Merchant and customer are identified via different technologies (Server, WIFI, QR, BLE). Payment is been proceeded by tokens of credit card data or bank account details.#30Pay-by-App wirecard Concept ▪ To pay by smartphone, customers simply have to download the app to their phone free of charge, register and provide details of their preferred credit card. ■ The payment page securely logs the credit card data and stores it in a PCI- compliant way with tokenization services. This guarantees maximum security for both the customer and the merchant.. ▪ The customer is able to easily pay at the merchant location via QR-Code, BLE, Wi-Fi. The customer simply confirms the fare on their smartphone with their personal PIN. 2014 Wirecard AG 30#313. Bluetooth Low Energy A new contactless standard P Asyl teilte mit, EL Aufgrund jedoch lediglic im Parlamen en Zone lie rurteilt Italien ckführungen of für Menschenrech 23. Februar. Der Eur schaut worden. Da BALZAC COFFEE SUNDAY, 02/15/2012-14:14 Tramont 4:20 PM Receipt 1234 15.40 € Share t O willens. Das Vorhaben der Verk ligion und der bunten alkerungsgruppen, deren Be erbliebenen, sonders der Schuld nich nicht verhindern gerieten und ten Mor en Si- ung nicht durch staatliches Durch cendet wurde, sondern erst Selbstmorde der bis zuletzt anzlerin war die einzig Tater. Die feierliche te: der Staat war sie sel- usländischer Herkunft, der ganzen Gesell- h auch sich selbst, heren Bundespräsi politischen Ver Di Frage te sich da zum der demokratische schon mit der Zulas Lande nicht zu Hause ten, nur wed ihre Eltern fremden Land kummen".#32BLE wirecard BLE Beacon ▪ Beacon - small, inexpensive device transmitting Bluetooth signal (up to 30m) Smartphone with dedicated app can seamlessly connect with beacon when within range ▪ One beacon works approximately 2 years on one battery. Beacons can be also connected to power outlets or even build into them Major enabler not only for payment technology, but also proximity marketing and in-store analytics Range: 30m Runs on battery for: 2 years#33BLEpay app App shows nearby stores on "radar" screen ...00 UP-NEXT Customer needs to check-in in store to enable payment Proximity notification when user approaches a store Push notification requesting payment authorization Auto check-in option for returning customers 4:21 PM Lucky Luck 20. CREDITS 22% wirocard CHECK IN BLE Drag the icon to check in DRAG HERE#344. Big data The Future of Retail P Asyl teilte mit, EL jedoch lediglic Aufgrund im Parlame nen Zone lie rurteilt Italien ckführungen of für Menschenrech 23. Februar. Der Eur schaut worden. Da BALZAC COFFEE SUNDAY, 02/15/2012-14:14 Tramont 4:20 PM Receipt 1234 15.40 € Share t O willens. Das Vorhaben der Verk ligion und der bunten alkerungsgruppen, deren Be erbliebenen, sonders der Schuld nich nicht verhindern gerieten und ten Mor en Si- ung nicht durch staatliches Durch cendet wurde, sondern erst Selbstmorde der bis zuletzt anzlerin war die einzig Tater. Die feierliche te: der Staat war sie sel- usländischer Herkunft, der ganzen Gesell- h auch sich selbst, heren Bundespräsi politischen Ver Di Frage te sich da zum der demokratische schon mit der Zulas Lande nicht zu Hause ten, nur wed ihre Eltern fremden Land kummen".#35POS goes eCommerce wirecard ALLA#36Wirecard ePOS Platform ● ● ● ● Central platform & data warehouse POS connector for item-level shopping information Beacon platform Couponing & Loyalty Payment integration Å (())) jº Location Navigation € Check-in Coupons % Proximity Marketing Mobile Payment wirecard -20% i -20%#37Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial conditions, performances and achievements of Wirecard AG may differ substantially from those expressed in such explicit or implicit statements. Wirecard AG makes these statements at the time of the publication of the presentation and is under no obligation to update the forward-looking statements in this presentation including on receipt of new information or on occurrence of future events or for other reasons. However, Wirecard AG, may change in its own free discretion any forward-looking statements should relevant factors change. wirecard The forward-looking statements from third parties' surveys, in particular without being limited to research reports and analysts' statements, may prove to be incorrect. Reference to such third parties' surveys is provided for information only and does not imply any agreement with or consent to the content of such surveys or the information, opinions or conclusions contained therein. Wirecard AG accepts no liability for the selection, completeness or correctness of third parties' studies. Wirecard AG mostly publishes its figures in thousands of euro (kEUR). The use of rounding means that it is possible that some figures do not add up exactly to form the totals stated, and that the figures and percentages do not exactly reflect the absolute values on which they are based. This presentation is no offer for the sale and no invitation for offers of purchase or for subscription to of shares of Wirecard AG but is provided for information only. Financial data (IAS/IFRS) refers to the Reports of Wirecard AG published on our website: http://www.wirecard.com/investor-relations 2014 Wirecard AG 37#38Contact Wirecard AG Einsteinring 35 85609 Aschheim / Munich Germany Investor Relations Iris Stöckl [email protected] T: +49 (0) 89 4424 1424 wirecard