interesting information from yesterday's agm

I left Adelaide for Melbourne yesterday morning at 7am - good thing I did as it reached 42.5 degrees yesterday. Made my way the the Stamford Plaza to the Thornbury Room - for a minute I thought Wildash had done a deal with Thornby Investements for a free room. It wasn't new found company hubris goiung 5 star - they have simply ran out of room at the company headquarters where they had the AGM last year. Greg Monaghan opened the proceedings and ran through the operational highlights which I won't go into as they are well documented on the releases yesterday to the market. Wildash then adressed the meeting to detail the growth opportunities and the "vison" of the company going forward...FI branding, New Zealand, fleet outsourcing, internalisation of processing, pricing policy, ATM advertising and takeovers. I won't go into detail on all these opportunities but will expand on information presented at the meeting

Pricing policy - 220 machines have been test marketed at $2.50 with affect on transaction levels being minimal - ie.1 % or less. A further 300 machines will with be increased to $2.50. As well they have tested some machines in the CBD at $1.50 with minimal effect on transactions. I expect the fleet will be gradually and quietly have the $2.50 fee introduced over the next 12 months. In economic terms the $1.50 - $2.50 range is " price inelastic" from a users point of view - just give me the cash they say ! I imagine the media statergy will be...yes we have increased the fee to $2.50 in some locations but in others we have decreased it to $1.50.

Takeover overs - The smaller players in the ATM space are being squeezed out. It was announced CUS has taken over 2 smaller players, one with 100 machines. Watch this space !!

New Zealand - 5 of the 7 banks have signed. Wildash and the team are heading over the NZ to meet the 2 IC and expect a resolution very soon. When the two banks understand it's good for them, that's ANZ and ASB, then a deal will be signed.

ATM advertising - It was announced one of the clients signed was McDonalds. The implications of this are enormous - other potential advertisers and media buyers will follow Macca's lead and jump into the space. With coupon delivery done remotely and, when advertiser's back end coupon redemption audit systems are in place the demand will explode. Couple that with a non-bank user getting a
coupon worth anything from a $1 to whatever then, in his/her mind they've had a free transaction or are cash postive from the transaction.

Hyosung deal - CUS can now truely move into the fleet outsourcing for the banks as banks do overseas. In simple terms, some bank's ATM's machines are profitable for high transactions machines but many are not. Customer's offers them a solution by enabling the outsourcing of the unprofitable machines to them - cheaper for the banks, profitable for Customers...a win/win. The machine is self cashing - you can put money into the machine ! ( wonder if you get paid to do that ? ...lol )

It was a great day with a light lunch after and I had the opportunity to meet many of the team. The thing that strikes me about the team is every is really happy and love what they do - a small community of some 108 members that are intensely focused on getting the job done creating one of the most successfull companies in Australia.

Thats' it ! Happy trading !