BillMyParents Investor Presentation January 2012 (OTCBB: BMPI)

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Investor Overview of BillMyParents. Slides include Corporate Overview, Executive Team, Board of Directors, Market Overview, Product and Features, Building Brand and Sales Momentum, Financial Opportunity, Q & A, and more.

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BillMyParents Investor Presentation January 2012 (OTCBB: BMPI)

  1. 1. Investor Overview January 2012
  2. 2. Safe Harbor - Forward Looking Statements This presentation contains certain forward-looking statements that involve risks and uncertainties. Such forward-looking statements include statements regarding attempts to identify new strategic opportunities which may include a strategic transaction, plans regarding partnering activities, product pricing, financial projections. Such statements are only predictions and the Companys actual results may differ materially from those anticipated in these forward-looking statements. Factors that may cause such differences include the risk that the Company may not be able to identify acceptable strategic opportunities or conclude any strategic transaction which it does identify, the risk that products that appeared promising in early use do not demonstrate the same utility in larger-scale uses, the risks associated with the Companys reliance on outside financing to meet its capital requirements, and the risks associated with the Companys reliance on collaborative partners for shipping. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks. These factors and others are more fully discussed in the Companys periodic reports and other filings with the Securities and Exchange Commission. CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 2
  3. 3. Corporate Overview • BillMyParents, Inc. (OTCBB: BMPI) provides payments solutions to teens, young adults and their parents • The Company’s primary product offering is a prepaid reloadable MasterCard with parental features including monitoring, reloading remotely and lost money recovery • Less expensive alternative to cash, credit or debit cards  No credit / overdraft fees and no bank account fees • Subscription based revenue model with a monthly account maintenance fee in addition to card load fees and ATM access fees • The prepaid card market is rapidly growing  Expected to grow from $165 billion to over $421 billion in the next two years* *Mercator Advisory Group CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 3
  4. 4. Executive Team Mike McCoy – CEO and Chairman • Former President of Wells Fargo Consumer Credit Cards • Led team of 5K employees, who managed $20B, representing 8.5M customers • Recognized leader in financial services industry • Industry contacts and strategic relationships Jim Collas – Founder, Technology, and Operations • Former CTO of Gateway Computers (7 years through IPO) • Launched over $28B in consumer products • Expertise in user experience and product development • Extensive experience in early stage ventures Jonathan Shultz – CFO and Treasurer • Seven year veteran Ernst & Young; CPA, CMA and CFM; Masters in Finance • Significant international business experience, speaks four languages • Extensive experience in mergers, acquisitions and going public transactions • Expertise in Information Technologies CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 4
  5. 5. Board of Directors • Isaac Blech, Director – Founded/Financed companies creating over $35B in market value Founded and financed some of the world’s leading companies in the biotechnology field including Celgene , Nova Pharmaceutical, Genetics Systems, ICOS, and Pathogenesis, creating in excess of $35B in market value. More recently Mr. Blech has become the lead financier and largest shareholder in companies including Bill My Parents Inc., Premier Alliance Group, Stratus Media Group, ContraFect Corporation, Cerecor Inc., and Medgenics. • Cary Sucoff, Director – Over 28 years of securities industry experience Has over 28 years of securities industry experience. Mr. Sucoff currently serves on the Board of Directors of Contrafect Corp., Cerecor Inc., Premier Alliance Group and American Roadside Burgers. Member of the Board of Trustees of New England Law/Boston for over 20 years and Chairman of the Endowment Committee. B.A. from SUNY Binghamton (1974) and a J.D. from New England School of Law (1977) where he was the Managing Editor of the Law Review and graduated Magna Cum Laude. Mr. Sucoff has been a member of the Bar of the State of New York since 1978. • Patrick Kolenik, Director –Former CEO of Sherwood Securities Corp. Has over 40 years of securities industry experience. Formerly CEO of Sherwood Securities Corp., one of the largest securities trading firms in the U.S. Mr. Kolenik has been involved with more than 200 public and private financings. Mr. Kolenik currently serves on the Board of Directors of Premier Alliance Group, Stratus Media and American Roadside Burgers. • ___________, Director - CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 5
  6. 6. MARKET OVERVIEWCONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 6
  7. 7. What is a Prepaid Card? • MasterCard/Visa/Amex • Not a credit card • No linked bank account • Spend what’s loaded Load Use • Reload when needed Repeat • Online account setup CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 7
  8. 8. Reloadable Prepaid Cards Replacing Cash Prepaid Card Loads in $Billions Load Use Repeat Mercator Advisory Group: Seventh Annual Prepaid Card Forecast CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 8
  9. 9. Teen Market is a Substantial Opportunity • 43 million teens and tweens* • Transition is at the inflection point • No established major brand *U.S. Census 2010: Population ages 10 to 19 CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 9
  10. 10. Better for Teens Than Cash, Credit, or Bank Cards • Parents can monitor teen spending • Parents can load money remotely • Teens can shop online without parents card • Lost money can be recovered • No credit or overdraft risks • No bank account hassle or fees CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 10
  11. 11. Optimized for the Parent/Teen Relationship • Monitoring • Freedom • Communication • Communication • Guidance • Learning CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 11
  12. 12. PRODUCT AND FEATURESCONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 12
  13. 13. Features Optimized for Teens and Parents • Real time SMS alerts • Lock/Unlock account • Emergency loads • Simple allowances • Extended family support CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 13
  14. 14. Family Enabled Group Gift Card (Patent Pending) Mom and Dad $100 Mary - Sister $25 Grandma and Grandpa $50 Aunt Jane & Uncle Joe $50 Uncle Eric $25 TOTAL: $200 CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 14
  15. 15. Future Parent Reimbursement Feature (IP) CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 15
  16. 16. One-Click-and-Your-In Movie Tickets • At theater location • GPS auto location • One click purchase • No waiting in line CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 16
  17. 17. Future Teen/Parent Collaborative Shopping (IP) Share & Discuss • Comparison shopping • Shared screens • Teaches smart spending CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 17
  18. 18. Teen Spending Management System CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 18
  19. 19. Extensive User Testing and Feedback 92.3% of parents agreed that the BillMyParents card helps teens develop smarter spending habits* Spend Smart “I love getting the text alerts. I can tell where she is and how much she is spending!” - Kelly L. “Now he doesn’t have to tell me what he is up to because he knows I already know.” – Kim B. “The Lock/Unlock feature is very simple to use and makes me feel that I am in control.” – Becky P. “The family and friends support is a nice way for family members to give her money for gifts.” - Heidi D. * Internal survey of Vocalpoint members participating in BillMyParents pilot CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 19
  20. 20. BUILDING BRAND AND SALES MOMENTUMCONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 20
  21. 21. Effective Marketing and Sales Channels Online Sales Channels$$$ Retail Sales Channels Strategic Partnerships$$$ Brand Awareness CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 21
  22. 22. Cost Effectively Building Brand Awareness Parents Teens • Buzz Marketing • Word of Mouth “Priceless” Campaign • Social Media Rob Dyrdek • Mom BloggersP&G Word-of-Mouth Agency • Earned PR MTV Fantasy Factory • Sponsorship Mommy Blog Convention • Strategic Partners ESPN Street League CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 22
  23. 23. BMP/MasterCard Joint “Priceless” Online Ad Campaign • $1M marketing program • 70 million consumer impressions • Developed and funded by MasterCard • Approved use of “Priceless” campaign • BMP considered leader in Teen prepaid* * According to website traffic as measured by compete.com CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 23
  24. 24. Talk Radio Host Endorsement – Dr. Laura CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 24
  25. 25. Buzz Marketing Campaign GREEN IS BAD. PLASTIC IS GOOD. CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 25
  26. 26. Buzz Marketing Campaign Mom Blogger Conference• 4,000 mom bloggers• Plastic Is Good website• Mock demonstration• Booth and luncheon• Recruited bloggers CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 26
  27. 27. Word-of-Mouth Marketing Campaign• P&G advertising agency• Proven word-of-mouth marketing process• Advocacy network• 500K influential moms CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 27
  28. 28. Rob Dyrdek - BillMyParents Ambassador to Teens • Teen celebrity • Facebook – 2.7M • MTV show • ESPN events • 10M+ viewers CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 28
  29. 29. Building Brand Awareness Momentum FROM 21,000 TO 770,000 UNIQUE WEBSITE VISITORS Source: compete.com website analytics CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 29
  30. 30. Catching up to the Billion Dollar Prepaid Brands WEBSITE VISITORS $1.5B to $2.4B Market Cap $0.5B to $1.4B Market Cap Private Company Source: compete.com website analytics CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 30
  31. 31. Effective Marketing and Sales Channels Online Sales Channels$$$$$$ Brand Awareness CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 31
  32. 32. Effective Marketing and Sales Channels Online Sales Channels Banner Ads Affiliates$$$ Search Social Engines Media$$$ Brand Awareness CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 32
  33. 33. Proven On-line Sales Channel • Internal expertise in direct sales marketing • Currently signing up 500+ cards per day • Potential to ramp up to 1,000 cards per day in 90 days and several thousand cards per day in 6 months* • Target of 1 million cards in 24 months * Internal assumptions based on pipeline of potential affiliate partners CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 33
  34. 34. Effective Marketing and Sales Channels Online Sales Channels $$$ Retail Sales Channels (Launch 2012 holidays) Strategic Partnerships (Launch 2012 back-to-school) $$$ Brand Awareness CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 34
  35. 35. FINANCIAL OPPORTUNITYCONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 35
  36. 36. Revenue Model • $3.95 monthly service fee • Parent load fees • Transaction interchange fees • Family and friend load fees Unique to BillMyParents • Family promotional channel • Teen peer-to-peer marketing channel CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 36
  37. 37. Metrics based on installed cards base* Potential Market is 43 million teens and tweens** 100K 250K 1M 2M Cards Cards Cards Cards Revenues/Year $11M $28M $120M $240M GP$/Year $7M $18M $66M $132M * This example table is based on BillMyParents internal cost models and is not meant to be used as a forecast. ** U.S. Census 2010: Population ages 10 to 19 CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 37
  38. 38. Future Milestones IR Focused Card Ramp IR Consumer PR Holiday Brand Initial 2012 Brand Awareness Push Awareness Push New CEO MasterCard Mobile PR on Back-to-SchoolAnnouncement Payments Pilot Partnerships Begin Major PR/IR Push Card Ramp Announcements October November December January February March 2011 2012 CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 38
  39. 39. Select Industry Acquisitions and Valuations • $0.5B to $1.4B market cap • IPO in October 2010 • $1.5B to $2.4B market cap • P/E Ratio = 50 to 80 • As high as $665 per user Example of Potential Acquirers Major Stock Exchange Potential CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 39
  40. 40. Summary • Teen prepaid market poised to accelerate • BillMyParents is considered a leading brand • Gaining brand marketing momentum • Direct response plans ramping as planned • Clear path to capitalizing on a growing market CONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 40
  41. 41. Q&ACONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 41
  42. 42. DISCLAIMERS: This communication is neither an offer to sell nor a solicitation of an offer to buy any securities mentioned herein. This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part; copies circulated, or disclosed to another party, without the prior written consent of Maxim Group LLC ("Maxim") are strictly prohibited. Information and opinions presented in this report have been obtained or derived from sources believed by Maxim to be reliable, but Maxim makes no representation as to their accuracy or completeness. Maxim accepts no liability for loss arising from the use of the material presented in this report, except that this exclusion of liability does not apply to the extent that such liability arises under specific statutes or regulations applicable to Maxim. This report is not to be relied upon in substitution for the exercise of independent judgment. Maxim may have issued, and may in the future issue, other reports that are inconsistent with, and reach different conclusions from, the information presented in this report. Those reports reflect the different assumptions, views and analytical methods of the analysts who prepared them and Maxim is under no obligation to ensure that such other reports are brought to the attention of any recipient of this report. Investing in foreign securities carries certain risks not associated with domestic securities markets (such as foreign exchange risk, geo-political risk) and, therefore, may not be suitable for all investors. The value of non-dollar denominated securities is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities. Investors in securities such as ADRs, the values of which are influenced by currency volatility, effectively assume this risk. All prices mentioned in this report are subject to market conditions. Investors must make their own determination as to the appropriateness of an investment in any securities referred to herein, based in their specific investment objectives, financial status and risk tolerance. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied is made regarding future performance. Information, opinions and estimates contained in this report reflect a judgment at its original date of publication by Maxim and are subject to change without notice. The price, value of and income from any of the securities mentioned in this report can fall as well as rise. Securities recommended, offered or sold by Maxim: (1) are not insured by the Federal Deposit Insurance Company; (2) are not deposits or other obligations of any insured depository institution; and (3) are subject to investment risks, including the possible loss of principal invested. Indeed, in the case of some investments, the potential losses may exceed the amount of initial investment and, in such circumstances; you may be required to pay more money to support these losses. Maxim may make markets in the securities listed in this report, and/or maintain positions in the securities listed in this report or their derivatives that may be contrary to the opinions in this report. Please contact your registered representative to determine the current market-making status of any specific security. For all relevant disclosures applying to any and all securities mentioned herein relating to Maxim or its affiliates please go to the following website: http://www.maximgrp.com/disclosures/third-party.aspCONFIDENTIAL INFORMATION TO BE SHARED UNDER NDA 42

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