Ann: Investor Presentation, page-150

If you refer to page 16 of the latest TSN Investor Presentation dated 19/02/18 below, you will note that at present the company has 500+ odd physical Bill Payment Kiosks/Terminals products on the market throughout India. Many of these Kiosks/Terminals have been on the market for approximately a decade. But the company's Bill Payment share of the market is almost negligible right now at only 500 machines in a population of over 1.2 billion people. So how are TSI India planning to propel this business at scale and scope going forward?

https://hotcopper.com.au/threads/ann-investor-presentation.4025422/?post_id=31146286#.WqXu4-hubIU

If you refer to page 3 of the TSN's Presentation below re the TSI India payments business, you will note that TSI highlight that they will be able to leverage their existing Bill Payment Kiosk infrastructure and management platform. How so?

http://tsnltd.com.au/wp-content/uploads/2017/05/TSI-India-Payments-Business-2.pdf

TSI India has become an Agent Institution and Technology Service Provider for BBPS. Ok, but what does this mean? A new Bill Payment solution was launched across India last year called the Bharat Bill Payment System (BBPS). Anyone who has done even a bit of research on the BBPS solution will understand how game changing this system will be across India. As I mentioned, TSI's share was almost negligible, but that could dramatically change with the a focus on the BBPS system.

We know that TSI India are working with 35 plus banks and various high profile Utility Companies and Financial Institutions, are serving over 500 million customers and are performing over 550 million transactions annually. Now that's all well and good, but how do TSI India capitalise on this new BBPS solution? We know that the BBPS system was intended to be a one stop payment system for all bills across India. Current billers on the system include, Gas, Electricicty, Water, DTH and Telecom with many more to come online including, Insurance, Institution Fees, Credit Cards, Mutual Funds, Government Payments, Charity and many more. So what role will TSI India play in all of this? TSI India will act as a touch point as an Agent Institution and Technology Service Provider. One just has to look at where these bills can be paid and via what particular mode. Which channels are TSI India currently operating across? Bank branches, ATMs, Kiosks, Internet, Mobile, Agents / Business Correspondent with POS and MPOS a work in progress (note, that was back in May 2017, so wonder where things are at now?). What options do people have to pay these bills? Via cash, internet banking, credit card or debit card via pre-paid mode, IMPS, wallet, account transfer, UPI and AEPS. What's TSI's business solution? Their solution strategy is to deploy BBPS enabled Kiosks to provide their customers (existing and prospective customers) multi-biller payment options across the various touch points I mentioned above. These Kiosks will be integrated with Banks and Aggregator/Service Providers or BBPOU's and all transactions at these Kiosks will be routed to sponsor banks as an when a new biller (not currently featured on the BBPS system) goes live on BBPS, customers will be able to pay via that biller.

Why do I like this business line so much?

* Brand visibility - it will increase awareness of TSI's other product channels.
* Provides customer with various touch points.
* Opens up potential new revenue streams.

This is an end to end solution that TSI will be providing - hardware supply and installation, software, cash logistics, brand awareness, customer assistance, various touch points etc. In other words, the back-end operations and processes will be handled by TSI and the technical platform by partner.

Now let's look at the pipeline TSI were working on and towards with regards to this BBPS system (when TSN added this presentation to their website).

1. TSI were in active discussions with 3 Utilities for BBPS on their existing Kiosks. If successful, TSI would act as an agent for sponsor bank (DCB).

2. TSI were in active discussions with 3 Utilities for BBPS on White Label Kiosks. If successful, TSI would act as an agent for sponsor bank (DCB).

3. TSI were in active discussions with 3 Banks for BBPS enabled Kiosks for banks and if successful, would act as a technical service provider, where TSI would potentially deploy these kiosks at banks branches, ATMs and lobbies.

4. TSI were in active discussions with 1 new age bank for Micro ATMs with BBPS and if successful, would act as a technical service provider, where TSI would potentially deploy these Micro ATMs at banks designated business correspondents' outlets.

What are TSI's existing competencies?

* ATM business (Brown Label ATMs).
* Bill-Pay Kiosks.
* Payment Business.
* ATM security.
* E-surveillance/Power Management.
* Banking and payment solutions.
* Loyalty and rewards.
* Incident Management.
* Deployment.
* Cash forecasting
* Emerging business.

What are some of the new competencies through acquisitions and joint venture partnerships?

* E-KYC (know your customer) & E-branch.
* Remittance.
* Mobile Payments.
* POS/Micros ATMs.
* Payment gateway.
* Cards management.
* Document digitisation.
* Switching and reconciliation services.

And what would be managed through partners?

* Video analytics.
* SLM.
* Cash replenishment.

I've been quiet enthused about this new business line, as it's one that hasn't even been tapped into yet by TSI India. There's a lot that could be accomplished here. I was also very happy to still see SREI highlighted on the recent Investor Presentation. That strategic partnership may not have come out of the gates racing, but that doesn't mean there isn't opportunity sitting there. I'm beginning to understand why CX may be holding on to this investment.

Tony