NetCents Technology Pay. Your Way - INVESTOR DECK
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NetCents, The Future of Payments The transactional hub for all cryptocurrency payments We founded NetCents with the belief that the payments were outdated, too complicated, and far too costly for merchants. There was a better way. As Bitcoin began to gain traction in 2017, NetCents • Licensed Money Service ceased all traditional payment processing and pivoted, focusing 100% Business on cryptocurrency. • KYC, AML, IP Verification NetCents eliminates the friction of transacting with cryptocurrency • Publicly traded in Canada, and offers an entire cryptocurrency ecosystem providing full payment Germany, and the US integration, Instant Settlements, and security while providing consumers access to over 40 million merchants, worldwide. CONTACT US Clayton Moore, Founder & CEO Investor Relations claytonmoore@net-cents.com investor@net-cents.com 604.638.7597 604.633.9967 CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 2
The Promise of Crypto Cryptocurrency was created to streamline the payments process and facilitate electronic commerce The original mission of bitcoin has gotten lost since its founding, it’s technology doesn’t support micropayment well or speeds required for efficient payments Source: Bitcoin white paper - satoshi nakamoto CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 3
Trojan Horse Strategy • NetCents has built its payment technology into the majority of the payment terminals that are operating today • We believe that we have covered 80% of the North American market with these partnerships • The Company is currently onboarding merchants as quickly as possible with the expectation of growth created by the long term trends in the industry • Because NetCents software is already installed but "dormant" on millions of terminals, terminal companies would not choose an alternative provider of cryptocurrency payments for merchants using their hardware, hence "trojan horse” CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 4
Powering Over 7% of the Payment Industry NetCents is integrated into the majority of the payments industry, providing us direct access to over 15-million merchants globally and USD 1.557 trillion annually in transactions. Our goal is to convert 1% of these transactions to cryptocurrency, representing USD 15.57 billion in transactions annually. POS & TERMINALS ECOMMERCE PAX #2 globally, WooCommerce 40M terminal #1 eComm platform, Clover 5M stores worldwide NEXGO 1M devices /ExaDigm since 2014 38M POS Micros Magento Ecwid 330k customer 250,000 merchants 200,000+ merchants sites worldwide worldwide Verifone NCR 10 billion 100,000 restaurants Opencart transactions a year + 7,000 retail stores 345k live sites PrestaShop Aloha API OpenCart NetCents POYNT SoftPoint POS APP Shopware Hosted POSitouch XPIENT iOS/Android Payments Virtuemart Maitre’D Bleu Aireus Dinerware Squirrel CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 5
NetCents Merchant Platform Merchant receives payment 02 through the NetCents app *Online or In-Store Customer pays with 01 any online ewallet Merchant receives the funds 03 directly in their bank account PAY WITH BITCOIN CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 6
Payments Revenue Model NetCents earns an average of 3.5% on every transaction processed FEE STRUCTURES HIGH Merchants Transaction Fees • 1.99% variable fee 4.00% • $0.05 fixed fee Partnership Program • Monthly minimum processing volume • 1.99% variable fee LOW • $0.05 fixed fee • Variable revenue share model 1.00% Credit Card Program 1.99% 1.99% • 50% interchange fee revenue share F/X Fees F/X spot rate on all merchant, credit card, and $0.05 $0.05 partnership transactions • 1-4% • Dependent upon: F/X Spot Rate Exchange • Liquidity of the cryptocurrency Variable Merchant Fee being settled Fixed Transaction Fee • Transaction size CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 7
NetCents Visa Credit Card Platform Customer swipes the NetCents 01 Visa Credit Card to pay Any merchant around the world, that accepts 02 credit cards, can accept the payment *Online or In-Store SUPPORTED CURRENCIES Bitcoin, Ether, Bitcoin Cash, XRP, Verge, Zen, Tron, NEM CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 8
3-Year Projections KEY 3-YEAR METRICS $32,000,000 • 4,000 processing merchants with 88% loyalty rate • $20,000 average merchant monthly $22,250,000 processing volume • 72 new partners signed $12,500,000 • 3.5% transaction revenue • $3,645 3-year average cost per merchant $2,750,000 acquisition KEY 3-YEAR ROI METRICS ($7,000,000) Year 1 Year 2 Year 3 • $102,065 average lifetime value of a merchant • 2,812% 3-year average merchant ROI • 140% average annual compound growth rate Revenue Expenses EBIDTA CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 9
Rapid Growth QUARTERLY PROCESSING VOLUME $16,000,000 $12,000,000 t $8,000,000 $4,000,000 $0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 10
What Are the Growth Drivers 01. 02. 03. 04. Growth of Growing asset class Growth in user Development of the payments (in value terms /and base digital reserve industry acceptance) currencies CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 11
Payments Industry Is Growing The revenues generated by the payments industry is $2 trillion a year. This is slated to grow to $2.7 trillion in 2023 Source: CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 12
Crypto Wallets Are Growing • Crypto wallets have been growing at a rate of 10 million wallets a year over the past few years • Total wallets around 50 million • This might sound like a lot, but it isn’t when compared to the global population • In recent months crypto app downloads have spiked to 3mm a month or 81% year-on-year growth CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 13
Cryptocurrencies as an Asset Class Are Growing 1.1 1.1 Trillion Trillion With growing acceptance in the market and a larger number of use cases, it makes sense that current coins/tokens will appreciate as demand increases • Currently there is approximately 350 billion in value • Projected to reach 1.1 trillion over the next few years 350 Billion CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 14
Central Bank Digital Currency The wildcard growth could come from the establishment of central bank reserve currencies which would: • Provide consumer comfort as to the trustworthiness of crypto • Accelerate the adoption much faster than the high rates currently being experienced • Deutsche bank predicts that mobile payments will end up reaching 40% of transactions - displacing credit cards and cash • NetCents management believes that the creation of Central Bank Digital Reserve Currencies is a foregone conclusion, China is already in beta testing • This means that Crypto as an asset class would become multiple if not tens of trillions overnight, as well as creating hundreds of millions of digital wallets very quickly • All of those transactions could flow through the NetCents ecosystem CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 15
Conclusion – Trojan Horse Is Implemented • We are creating a barrier to entry by embedding into millions of payment points around the world • We have to onboard merchants as quickly as possible But: • The Business is coming our way based on the growth factors just mentioned CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 16
Growth Through Acquisitions Accelerating Growth NetCents’ M&A strategy is two-fold: 1 2 Accelerate revenue growth Expand market access with through acquisitions with strategic acquisitions providing t with audience portfolios that align t untapped access to new, and revenue objectives. markets for NetCents. CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 17
Company Information CAPITAL STRUCTURE 82.2 7.1 MILLION MILLION SHARES ISSUED OPTIONS 16.8 106.1* MILLION MILLION WARRANTS FULLY DILUTED *Insiders currently hold 41% of company shares OUTSIDE CONSULTANTS Davidson & Co Hakemi & Ridgedale LLP AUDITORS SECURITIES LAWYERS Gowling WLG TMX Group CORPORATE LAWYERS TRANSFER AGENT CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 18
Experienced Executive Team Clayton Moore - FOUNDER & CEO Clayton is an entrepreneur with over 15 years’ of industry-leading experience in the payment space. Prior to NetCents, Clayton founded Cybux, a payment platform focused on the service industry that is still being used today in many top Canadian restaurants and chains. In 2006, Clayton successfully exited Cybux, earning his seed investors a 700% ROI. He then developed a payment platform that was successfully integrated into 80% of the online gaming sites globally. Clayton regularly consults with Fortune 500 companies on their integration and payment needs, including MGM Resorts International. Jenn Lowther - DIRECTOR & CRO Chris Cherry - DIRECTOR & CFO Mehdi Mehrtash - CTO Jenn is an award-winning strategist with over 14 Christopher is a CPA obtaining the CA designation Mehdi is a serial entrepreneur and with over years’ experience in corporate and campaign in 2009 and the CGA designation in 2004. He has 20 years’ of technology experience. Having strategy at top agencies in North America working over 14 years’ of corporate accounting and audit worked with a diverse field of companies, with a range of clients from local bricks and mortar experience and has acted as Director and Chief from start-ups to Fortune 50 companies. businesses to major Fortune 500 clients. Jenn Financial Officer for public companies.He held Having been involved in the crypto and founded Indaba Digital in 2011 and Grown Here positions with KPMG and Davidson and Co in blockchain space since 2008, Mehdi brings Farms in 2016. Jenn holds a BBA and Economics Vancouver, gaining experience as an IPO specialist a deep understanding of cryptocurrency from Simon Fraser University and auditor for public companies. and related technologies to the team. Pat Albright - SVP STRATEGIC DEV Marcus Laun - VP FINANCE ADVISORS Pat is focused on the development and roll-out of Marcus is a seasoned Investment Banker and Advisor to growth companies. His career includes launching DR. CLAUDE SCHMIDT Wang Qin high growth development initiatives. Previously, HEAD OF ADVISORY BOARD VENTURE CAPITAL Pat was marketing and business SVP at Moneris the Investment Banking division of Knight Capital Solutions, managing 3 billion transactions per year. Group, managing syndicates exceeding $500 million. Daniel-Carl Eigenmann Jannis Flachsmann He earned a BA from Cornell University and MBA from BANKING & COMPLIANCE LEGAL Pat has an MBA from the distinguished Kellogg School of Management. Columbia University. Nicolas Genko TECHNOLOGY CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 19
Appendix
Competitive Landscape Guaranteed Price Protection Partner Program Customizable Asset Management System 0 confirmation POS Terminals iOS/Android Apps Daily Settlements Unlimited transaction size CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 21
Merchant Gateway Supporting payments everywhere merchants transact. Retail Point of Sale Ecommerce Invoicing Easy integration with shopping carts, terminals, POS systems + iOS/Android devices, and API. • Eliminate chargebacks and fraud INSTANT SETTLEMENTS • Fully-customizable and brandable • Price protection eliminating the • Wallet and cryptocurrency agnostic volatility from price swings of accepting • Process unlimited transaction sizes and cryptocurrency. monthly volumes • We guarantee that when you sell an • AI transaction validation item for $50, you receive $50 less a small transaction fee. • Source of fund tracking • Easy setup with iOS and Android apps • Full KYC + AML compliance • Zero blockchain confirmation CRYPTOCURRENCY TO FIAT 22
VISA, User Platform & NC Exchange NetCents makes it easy to send, receive, The NetCents VISA Card allows users to spend their cryptocurrency at store, and transact with cryptocurrency. over 40 million merchants, worldwide. Unlike other prepaid cards, the NetCents VISA cardholders have the benefit of: NetCents connects users with No card loading, tied directly to NetCents people and businesses around wallet the globe – instantly. Automatically settle purchases across multiple cryptocurrencies Eliminates the risk of cryptocurrency price fluctuations Platform Features • Cryptocurrency wallet • Buy/sell/transact with cryptocurrency • View live market information and historical prices • Buy, sell, manage, and spend your cryptocurrency online or with the NetCents iOS and Android apps • Multiple methods to load account • View live market information and historical prices • Crypto and fiat pairings 23
This presentation may include certain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Other than statements of historical facts, all statements included in this presentation that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competition, strengths, goals, expansion and growth of the Company’s businesses, operations, plans and other such matters are forward looking statements. When used in this presentation, the words “estimate”, “plan”, "anticipate", “expect”, “intend”, "believe", “pipeline”, and similar expressions are intended to identify forward-looking statements. Forward-looking information is based in part, on assumptions that may change, thus causing actual results or anticipated events to differ materially from those expressed or implied in any forward-looking information. Such assumptions include the stability or improvement of general economic conditions. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward statements are made as of the date of this presentation and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Such factors include, among others, risks related to unavailability of financing, unfavourable market conditions and other factors. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. CONTACT US Clayton Moore, Founder & CEO Investor Relations claytonmoore@net-cents.com investor@net-cents.com CSE: NC | FRANKFURT: 26N | OTCQB: NTTCF 24
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