As a refresher my notes from the 2017 AGM are below:CEO speech &...

As a refresher my notes from the 2017 AGM are below:

CEO speech & Q&A responses

1.      It has been a very busy year.

a.      European banking licence is a huge achievement

b.      EU regulators kept moving goal posts

c.      EU regulations came in with a whimper not a bang

d.      Global card scheme membership is a hugeachievement

2.      Update on the platform has been “slower thanwanted”

a.      “Personally disappointed” with the uptake 

3.      ISX taking very measured steps to get theplatform up and running, great care required:

a.      Company is watching the money (transactions)

b.      Company needs to know where the client’s fundsare in the system 

4.      Profitable in…..”due course”.

5.      “A number” of companies in the pipeline to onboard

6.      30% QoQ transactions increasing to 40-50%QoQ  ( to be announced today)

7.      Paydentity margins are higher than competitors.

8.      Paydentity is a proven process. The regulatorsknow it works.

9.      Paydentity is the “hook” that gets customers onboard and then they expand to the other services.

10.  XM are a large operation and taking it slow“dipping their toes” (risk aversion)

11.  XM have integrated to other parts of theservices12.  XM are ramping up gradually

13.  ISX is in the backroom of these companies andthey are highly risk averse. These customers will ramp up when they areready and comfortable. (Slowly, slowly is the point – be patient)

14.  Crypto currency (“coinspace”) is explodingcurrently.

15.  Customer onboarding time line 3 months comparedto 9-11 months by others is seen as impressive by UK financial analyst.

16.  Asia (Singapore and HK) has modern legislationbut old school tough regulatory practices.

a.      ISX not going spend money in Asia

b.      OneKey is expandable but not a big opportunityin the current environment 

17.  ISX market share is hard to determine becauseISX is in it’s own market. A new, largely undefined market.

18.  Amazon, PayPal, ISX are 3 of the only 4companies that use the Cloud for payment transactions. The system works.

19.  Challenge going forward is people and culture.

a.      ISX needs to handle the growth that is coming

b.      ISX have anticipated growth management problems– still needs to be managed

c.      ISX need to “work of the business”

20.  No timelines were given for anything.

21.  Cypress is a low cost, high skill centre.Strategic to have an office open during EU business hours.