Ann: Agreement to Add Significant Scale to Indian ATM Business, page-406

Page 12 of the Half Yearly Report dated 25/11/15 below highlighted that historically transaction volumes for TSI India have ranged between 3000 to 6400 per month.

The DCF valuation model has been based on a reasonable estimate of 3600 transactions per month.

http://www.asx.com.au/asxpdf/20151125/pdf/4339fd5zcqxt9x.pdf

If we break that figure down here's what current transaction metrics look like...

3600 transactions per month / 30 days = 120 transactions per day per ATM.

If we refer back to page 1 of the Independent Research Report dated March 2014 the group highlighted (according to Banknet India Conference 2006) that the national average estimate to be 8000 transactions per month.

http://tsnltd.com.au/wp-content/uploads/2011/08/TSN-Research-Report-March-2014.pdf

Ok, so why am I highlighting this?

The recent 11,000 ATM deal didn't provide us with the finer details re metrics, revenue, financials etc. Fingers crossed greater detail about this deal will be provided soon.

What we do know is that TSI India are averaging 3600 transactions per month on their current 2000 ATMs. I wonder what the monthly average transactions is for the new 11,000 ATMs deal presently on the market that TSI India are about to manage? Could it be closer to that national average estimate per month?

Let's aim lower for the purpose of this hypothetical exercise.

Let's say it's an average of 5500 monthly transactions per machine.

5500 transactions per month x 12 months x 11,000 ATMs = 726,000,000 transactions per year!!

That's just with one partner / one fleet of ATMs.

I think the national average transaction estimates should have increased with all the Government financial inclusion initiatives well and truly underway. One just has to look at the phenomenal rate debit cards have grown in two years in India! Of the 1.2 billion people in India, look at how many debit cards have been issued. Look also who is issuing these and look at where these cards are used. Numbers as of December 2015 sat at 643,191,224 and we still don't know what the figures are for Jan, Feb & March 2016 as RBI haven't updated these yet on their website.

I couldn't be more encouraged as to how well things are progressing both on a micro and macro level.

Tony