161011 BIH Investor presentation...INTRODUCTION Fragmented global FX market valued at $5.1tn/day...
Transcript of 161011 BIH Investor presentation...INTRODUCTION Fragmented global FX market valued at $5.1tn/day...
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BostonInternationalHoldingsI N V E S T O R P R E S E N T A T I O NO C T O B E R 2 0 1 6
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DISCLA IMERThesepresentationslides(the“Slides”)donotcompriseanadmissiondocument,listingparticularsoraprospectusrelatingtoBostonInternationalHoldingsPlc(the “Company”),donotconstituteanofferorinvitationtopurchaseorsubscribeforanysecuritiesoftheCompany(the“Securities”)andshouldnotbereliedoninconnectionwithadecisiontopurchaseorsubscribeforanysuchSecurities.TheSlidesandtheaccompanyingverbalpresentationdonotconstitutearecommendationregardinganydecisiontosellorpurchaseSecuritiesinthe Company.
TheSlidesandtheaccompanyingverbalpresentationareconfidentialandtheSlidesarebeingsuppliedtoyousolelyforyour informationandmaynotbereproducedordistributedtoanyotherpersonorpublished,inwholeorinpart,foranypurpose.NoreliancemaybeplacedforanypurposewhatsoeverontheinformationoropinionscontainedintheSlidesandtheaccompanyingverbalpresentationorthecompleteness,accuracyorfairnessofsuchinformationoropinions.Noundertaking,representation,warrantyorotherassurance,expressorimplied,ismadeorgivenbyoronbehalfoftheCompany,itsadvisersortheirrespectiveshareholders,directors,officers,employees,agentsoradvisersoranyotherpersonastotheaccuracyorcompletenessoftheinformationoropinionscontainedintheSlidesandtheaccompanyingverbalpresentation,andnoliabilityisacceptedforanysuchinformationoropinions(includinginthecaseofnegligence,butexcludinganyliabilityforfraud).TheinformationcontainedintheSlidesisselectiveandsubjecttoupdating,expansion,completion,revision,amendmentandverification.Itdoesnotpurporttocontainalltheinformation thataprospectiveinvestormayrequire.ProspectiveinvestorsshouldconducttheirownindependentinvestigationandanalysisoftheCompanyandoftheinformationcontainedintheseSlidesandtheyareadvisedtoseektheirownprofessionaladviceonthelegal,financialandtaxationconsequencesofmakinganinvestmentintheCompany.TheCompanyhasnotindependentlyverifiedanyoftheinformationcontainedinSlides. NothingintheseSlidesconstitutesthegivingofinvestmentadvicebytheCompanyoritsadvisersoranyoftheirrespectivedirectors,offices,partners,employees,agentsoradvisers.CertainoftheinformationcontainedintheSlideshasbeenobtainedfrompublishedsourcespreparedbyotherparties.TheCompanyhasnotcarriedoutanindependentinvestigationtoverifytheaccuracyandcompletenessofsuchthirdpartyinformation.NoresponsibilityisacceptedbytheCompanyoranyofitsdirectors,officers,employeesoragentsfortheaccuracyorcompletenessofsuchinformation.
TheSlidescontainforward-lookingstatements,whichrelate,interalia,totheCompany’sproposedstrategy,plansandobjectives.Suchforward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherimportantfactorsbeyondthecontroloftheCompanythatcouldcausetheactualperformanceorachievementsoftheCompanytobemateriallydifferentfromsuchforward-lookingstatements.Accordingly,youshouldnotrelyonanyforward-lookingstatementsandtheCompanyacceptsnoobligationtodisseminateanyupdatesorrevisionstosuchforward-lookingstatements.
TheSlideshavenotbeenapprovedbyanauthorisedpersoninaccordancewithsection21oftheFinancialServicesandMarkets Act2000(asamended)(“FSMA”).DistributionoftheSlidesisrestrictedtoaverylimitednumberofpartieswhohaveexpressedaninterestintheCompany.TheSlidesandtheircontentsaredirectedonlyatpersons:(i)ifintheUnitedKingdom,whofallwithintheexemptionscontainedinArticles19and49oftheFinancialServicesandMarketsAct2000(FinancialPromotion)Order2005(suchaspersonswhoareauthorised or exemptpersonswithinthemeaningofFSMAandcertainotherpersonshavingprofessionalexperiencerelatingtoinvestments,highnetworthcompanies,unincorporatedassociationsorpartnershipsandthetrusteesofhighvaluetrusts)andpersonswhoare“qualifiedinvestors”(withinthemeaningofsection86(7)ofFSMA);(ii)ifelsewhereintheEuropeanUnion,onlyto“qualifiedinvestors”(asdefinedinArticle 2(1)(e)oftheProspectiveDirective2003/71EC)towhomthisPresentationmaybedeliveredwithoutbreachbytheCompanyoritsadvisersofapplicablelaws;and(iii)inanyotherjurisdiction,onlytowhom suchdirectionmaylawfullybemadewithoutbreachofapplicablelaws.Anyinvestment,investmentactivityorcontrolledactivitytowhichtheSlidesrelateisavailableonlytosuchpersonsandwillbeengagedinonlywithsuchpersons.
Personsofanyotherdescription,includingthosethatdonothaveprofessionalexperienceinmattersrelatingtoinvestments,shouldnotrelyoractupontheSlides.
TheSlidesshouldnotbedistributed,published,reproducedorotherwisemadeavailableinwholeorinpartbyrecipientstoany otherpersonand,inparticular,shouldnotbedistributedtopersonsintheUnitedStatesofAmerica,Australia,theRepublicofSouthAfrica,theRepublicofIreland,JapanorCanadaorinanyothercountryoutsidetheUnitedKingdomwheresuchdistributionmayleadtoabreachofanylegalorregulatoryrequirement.NosecuritiescommissionorsimilarauthorityinCanadahasinanywaypassedonthemeritsoftheSecuritiesofferedhereunderandanyrepresentationtothecontraryisanoffence.Nodocumentinrelationtotheequityfundraisinghasbeen,orwillbe,lodgedwith,orregisteredby,TheAustralianSecurities andInvestmentsCommission,andnoregistrationstatementhasbeen,orwillbe,filedwiththeJapaneseMinistryofFinanceinrelationtotheequityfundraisingortheSecurities.Accordingly,subjecttocertainexceptions,theSecuritiesmaynot,directlyorindirectly,beofferedorsoldwithinCanada,Australia,Japan,SouthAfricaortheRepublicofIrelandorofferedorsoldtoaresidentofCanada,Australia,Japan,South AfricaortheRepublicofIreland.
TheSecuritieshavenotbeen,andwillnotbe,registeredundertheUnitedStatesSecuritiesActof1933,asamended‘theUSSecuritiesAct’)orwithanysecuritiesregulatoryauthorityofanystateorotherjurisdictionoftheUnitedStatesandmaynotbeofferedorsoldwithintheUnitedStatesorto,orfortheaccountorbenefitof,anyUSPersonasthattermisdefinedinRegulationSundertheUSSecuritiesAct.TheCompanyhasnotbeenregisteredandwillnotregisterundertheUnitedStatesInvestmentCompanyActof1940,asamended.
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INTRODUCT ION
◦ FragmentedglobalFXmarketvaluedat$5.1tn/daypresentsahostofacquisitionopportunities
◦ BostonInternationalHoldings(“BIH”)isseekingtoacquirecompanieswithintheFXsectortocapitaliseontheseopportunitiesandcreateshareholdervaluebydrivingpositivechange
◦ Firstacquisitionwithin18months- followingthis,potentialforcomplementaryacquisitions
◦ StrongmanagementteamwithdeepexperienceacrossFXandFSsectors
◦ StandardlistingofSPACwillprovideplatformtoraisefundstoexecutetargetedacquisitions
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EXPER IENCED MANAGEMENT
NormanRichardConnell• 10yearsworkinginstart-upenvironmentsbothinandoutof
financialservices• SeasonedregulatoryandcomplianceofficerinOTCDerivatives• Legal&ComplianceOfficerrolesatbothIFXMarketsandBoston
MerchantManagementServices
BordenJames,FounderandChairman• ManagingMemberCBFXLLC,ClarionCapitalGroupandonthe
BoardofIFXMarketsInc• FormerDirector&CFOBostonMerchantManagementServices,
Inc• FormerSeries3andSeries30licensesfromtheNationalFutures
Association.• FormerDirectorBMFNPtyLtd
RichardAllenHartheimer,Non-ExecutiveDirector• ElectronicFXtradingspecialist,developingtradingsoftwareand
providingconsultancy• +30yearcareerinFS,workedorconsultedforCiticorp,Cognotec,
Currenex,StandardCharteredBank• Expertwitnessoncasesdealingwithelectronictrading
BarbaraSpurrier,CompanySecretary• Qualifiedcertifiedaccountant(FCCA)withover35yearsfinance
experienceinnumeroussectors• Recentlysuccessfullyconcluded2IPOsand2RTOsontoLSE/AIM.• Hasbeenamainboarddirectorof4AIMlistedPlc’s,headingthe
revenuerecognitioncommitteeoftheboardforoneofthesecompanies.
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UnitedKingdom,2,426
UnitedStates,1,272
Singapore, 517
HongKongSAR,437
Japan, 399
France, 181
Switzerland, 156
Australia, 135Germany, 116
ROW, 907
D A I LY F X V O L UM E S ( $ B N )
THE MARKETTheworld’sLargestfinancialmarketwith>$5tntradeddaily
Source:BISTriennialCentralBankSurvey,2016
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THE OPPORTUNITY
◦ Competitionandfragmentationoverthepast20yearshascontributedtomarketevolution:◦ Innovationintechnology◦ Greatertransparency◦ Increasingvolume
◦ Recentmarketeventshaveledtoaneedforbettermanagementofriskandcompliance
◦ Increasinglycomplexregulatoryenvironment andlowerthresholdsforriskmeanthefragmented FXmarketisprimeforinvestmentandconsolidation
◦ Theproventrackrecord andexpertise ofBIH’smanagementteammeansthattheCompanyiswellpositionedtocapitaliseonthemarketopportunity
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TARGET ING A L L S EGMENTS ACROSS THE FX MARKET
BIH’sseniormanagementteam’sinvesting,dealandoperatingexpertiseacrosstheFXsectorwillallowthe
Companytosourceidealtargetbusinessesandimplementitsconsolidationstrategy
Brokers MoneyServiceBusinesses
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B IH BUS INESS MODEL
◦ BIHwillimplementanoperatingstrategyintheacquiredbusinesstogeneratevalueforitsShareholdersthrough:◦ Operationalimprovements◦ Potentialcomplementaryacquisitions◦ Re-admissionoftheenlargedgroup
◦ TheknowledgeandexperienceofthetheBoard,inparticularintheFX,financialservices andlegalandcompliance sectors,willcontributetotheimplementationofcompanystrategiesthatenhanceshareholdervalueandgeneratestrongreturnsforinvestors
◦ Onlylookingtoacquirehighqualitybusinessesthathaveexceptionalpotentialforgrowth andwhichoperateinjurisdictionswithsoundregulatoryenvironments
◦ Targeting retailoverthecounter(OTC)andcorporate deliverablepaymentsspace
◦ Withanacuteunderstandingoflegalandcomplianceissues,BIHwillensurediligentcorporategovernance withinthetargetcompanyandhavethecapabilitytooperatesuccessfulbusinessesinheavilyregulatedenvironments
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INVESTMENT CR ITER IA
BIHwillemployaproactiveacquisitiontargetingstrategywhichidentifiespotentialacquisitioncandidatesthatmatchupwithmanagement’svalueinvestmentobjectives
◦ FocusingonretailOTCandcorporatedeliverablepaymentsspace◦ Recentunderperformancerelativetocapabilities◦ Strongcompetitiveindustryposition◦ Companywithlargepotentialforgrowth◦ Strongandexperiencedmanagementteams◦ AlthoughthemainfocusisontheFXindustry,theboardhasdiscretiontopursueothersectorsandopportunitieswithsignificantgrowthpotential
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STRENGTHS OF S PAC APPROACH
BenefitstoInvestors• PE-likeinvestorapproachwithgreaterliquiditythrough
publiclytradedsecurities
• After18monthsifnoacquisitionhasbeenmadetheboardwillreviewandrecommendeithertocontinuetopursuetheacquisitionforanother12monthsortowindupanyremainingcapitaltobereturnedtoinvestors
• Alignmentofinterestthroughsponsorcapitalatriskandforfeitureandtransferrestrictionsonfounders'shares
• Accesstoincentivisedhighqualitysponsors
Benefitstotargetcompanies
• Fasttrackedlistingonarecognised stockexchange
• Privateequityinputwithoutprivateequityinfluence
• Abilitytostructurecomplextransactionstomeetseller’sspecificneeds
• Potentialforsellertoretainmajorityofupsideinstock
• Lessdisruptivetoseller/companyandemployeesthantraditionalIPO
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ADMIS S ION AND USE OF PROCEEDS
Admission:◦ StandardListingwithsharestradedontheLSEMainMarket◦ ThecredibilityofbeingapubliccompanywillcontributetotheCompany’sabilitytoexpandcreditlinesandgainliquidity
Fundingrounds◦ Firstroundoffundingraised£1.4m◦ Furtherfundingislikelytoberequiredpriortotheacquisition
Useofproceeds◦ Acquiringatargetbusinessaspartofashareconsideration◦ Expensesrelatingtotheacquisition(e.g.duediligence,legalandaccountingcosts)◦ Remainingcashtobeusedforworkingcapitalpurposes
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SUMMARY
Roll-upacquisition
strategygoingforward
Targetingagrowth
businessinahighgrowthmarketwithin18months
Deepunderstandingofregulation
andcompliance
issues
>$5tn/daymarketprime
forconsolidation
Strongmanagementteamwith
provenrecordinM&A