2013 Full Year Results 28 March 2014

Agenda

1. Full year highlights

2. Business performance

3. Corporate strategy

4. Summary

Presentation team:

Joel Leonoff

President & CEO

Keith Butcher

CFO

3

Full year highlights

4

Full year highlights

Exceptional full year results - investing for future growth

• Substantial increases in revenue and profitability

• Balance sheet and cash positions strengthened

• Good progress on strategic initiatives

• Principal Membership granted

• U.S. strategy rolling out

• M&A strategic targets being evaluated

• Significant investment to sustain and deliver further growth in

2014

• Strong start to new financial year

5

Exceptional Performance

• Net Profit for the period $31.5m (2012: $1.2m).

• Blended gross margin improved to 52% (2012: 50%)

$6.1 $6.4 $11.2

$25.3

$5.1

$11.1

$16.4

$26.9

2010 2011 2012 2013

H2

H1

$11.2

$17.5

$27.6

$52.2

+56%

+58%

+89%

EBITDA ($m)

$30.8 $57.4

$79.0

$118.4 $30.7

$70.5

$100.1

$135.0

2010 2011 2012 2013

H2

H1

$61.5

$127.9

$179.1 +40%

+41%

Revenue ($m)

$253.4

+108%

6

US$ m 31-Dec-13 31-Dec-12

Cash and cash equivalents $ 164.4 $ 82.2

Restricted cash (merchants) $ 1.6 $ 5.4

Restricted cash (members) * $ 4.6 $ 7.8

Total Group cash $ 170.6 $ 95.4

less Merchant cash/deposits ($ 76.8) ($ 37.5)

Group “own” cash $ 93.8 $ 57.9

Group free cash $ 38.0 $ 15.0

* Surplus on Qualifying Liquid Assets (member funds)

Cash position As at 31 December 2013

7

Balance sheet strengthened

Group Loans

• Group loans significantly reduced to $9.5m (31-Dec-

2012: $25.8m); materially debt free

• Vendor loans of $16.9m cleared (April-2013)

• Shareholder loans converted and cleared in Jan-2014

with successful placement of c25% shares in issue

Group Cash

• Free cash at 31-Dec-2013 approximately $38.0m (31-Dec-

2012: $15.0m)

• Strong run rate exiting 2013

Agenda

1. Full year highlights

2. Business performance

3. Corporate strategy

4. Summary

9

Business Line KPIs

Stored Value

100%

Group Product

Margin 52% $ 131.3 m

Straight Through Processing

Processing Cost

Bad Debts

Processing Cost

Bad Debts

Margin 84% $ 50.3 m Margin 42% $ 81.1 m

Revenue $ 59.8 m Revenue $ 193.0 m

Consumer Merchant Merchant

C. 40% C. 60%

10

Revenues H1 2013 H2 2013 FY 2013 Change FY 2012

Stored Value $ 28.3 m $ 31.5 m $ 59.8 m +54% $ 38.8 m

$37.9 $38.8

$59.8

FY 2011 FY 2012 FY 2013

NETELLER - Product Line Fees ($m)

2%

54%

Business turnaround

VIP Focus

• Enhanced loyalty cash back program

• VIP revenue +85%, ARPU +21%

Non VIP program

• Increased marketing, active members +40%

• Improved affiliate channel, revenue +162%

• Opened up to new countries & deposit types

• Closer ties with merchants & joint promotions

• Sign up volumes +44%

• Conversions +68%

11

Revenues H1 2013 H2 2013 FY 2013 Change FY 2012

Straight-Through

Processing $ 89.9 m $ 103.1 m $ 193.0 m +39% $ 138.9 m

$86.8

$138.9

$193.0

FY 2011 FY 2012 FY 2013

NETBANX - Product Line Fees ($m)

60%

39%

• Strong existing customer growth – particularly

in Asia

• Seasonal uplift in H2 with growth in travel &

online retail in Q4

• Organic growth from existing gaming & non-

gaming customers

• Continued new merchant acquisition

• Growth in mobile payments

• Addition of new acquiring bank partners

• Granted Principal Membership – competitive

low cost structure in European Union

• Building our sales teams to leverage off of

Principal Membership status

Agenda

1. Full year highlights

2. Business performance

3. Corporate strategy

4. Summary

13

Progress on strategic initiatives Delivering the present and building the future

1 2 3 4 5 Drive growth

in core

business

lines

Develop

multi-

channel

solutions

Deliver new

white-label

propositions

Position for

U.S. gaming

opportunity

Inorganic

growth

through

acquisition

14

Principal membership Acquiring – a key part of future success Obtained Principal Membership with Visa Europe and MasterCard Europe

for merchant acquiring in the European Union (announced January 2014)

• Facilitates acquirer status in key markets with more control and

independence; higher margins and profitability for the NETBANX offering

• Currently investing in people and processes to leverage this from the

second half of 2014

Issuing – a new market opportunity in prepaid MasterCard principal membership for issuing achieved November 2012

• Built on this in 2013 – improved existing products and developing a wider

suite of services linked to NETELLER stored value service

• Have seen consistent growth with award winning Net+ product

• Over 450,000 cards issued; c35,000 users active per month

• Processed over 2.4 million transactions in 2013 (+25% vs 2013)

15

MOBILE

Multi channel solutions Integrating with our partners

Our focus is to expand on innovative solutions we make available

for our customers to:

• Improve conversation rates and convert browsers to buyers

• Provide faster and move convenient checkout across all channels

• Integrate loyalty

OMNI-Channel

• MasterPass is MasterCard’s payment wallet

and gives customers an easy way to checkout

online

• Designed to give shoppers access to their

payment types and shipping information

• Now live with one of our own merchants as of

March 2014

16

Deploy Optimal Payments technologies in new markets with key strategic

partners

White label product opportunities:

• Net+ Card issuing opportunities (e.g. remittance, general purpose, travel,

student, prepaid consumer cards)

• NETBANX gateway and processing engine

• Mobile enabled digital wallet

Digital Wallet Gateway &

STP Engine

White label propositions Integrated payments solutions

Card Issuing

17

Established as a leader in gaming

payments

Serviced all top global brands since 1996

Proven in North America with Loto-Québec,

renewed agreement to provide services for

Espacejeux.com

US online gambling industry could be worth $9.3

billion by 2020 (per Morgan Stanley report, 2013)

U.S. gaming opportunity Strong and growing presence • Based on intra-state model – processing in all three regulated states: Nevada, New

Jersey & Delaware with other states to follow; registered as a payments vendor in New

Jersey, Nevada and Delaware in 2013

• Launched NETELLER and Net+ stored value service in March; announced a new

partnership with the Borgata Hotel Casino & Spa in New Jersey

• Partnered with Vantiv for card processing; selected by Caesars and Bally for payments;

extended existing partnership with 888 Holdings

18

M&A strategy Objective: to enhance organic growth and diversify the existing business

• Target: STP oriented Payment Service Provider in an established market with an

existing merchant base with a strong local sales force and CRM

• Create a more accretive deal through elimination of all technical

costs/infrastructure

• Working with Deloitte as an M&A advisor to assess opportunities that provide a

strategic fit at the right valuation

Financial position improved:

• Effectively debt free and cash generative

• Debt financing available from a number of banks

• Improved share price – strong currency to pursue accretive deal for

shareholders

Agenda

1. Full year highlights

2. Business performance

3. Corporate strategy

4. Summary

20

2013 was a year of many achievements

Summary

• Strong performance across the business

• Very strong organic growth

• Continued expansion of product line

• exceeded market expectations

• Good progress on strategic objectives:

• achieved Principal Membership with Visa & MasterCard in EU

• well positioned in U.S. gaming

• Moving forward with pursuit of M&A strategy

• Awarded International Company of the Year on AIM

• Successful placement of shares in the new year

• Will build on this success in 2014

21

An award winning business

Recognised for innovation

Winner, Best Mobile

Billing Application

mGaming Awards (2012)

Winner, Innovation

in Payments Solutions (2012)

Winner, Payment Solutions

Provider Company

of the Year (2014)

Winner, AIM Awards 2013

International Company

of the Year

Winner, Keith Butcher

Finance Director of the

Year (2013)

Winner, Best Payment

System for Affiliates (2014)

Appendices

23

2 leading payments services: NETBANX and NETELLER

$15+ billion in transaction volume processed in 2013

16+ global acquiring relationships

17 years track record, UK FCA regulated & PCI certified

100+ payment types & multi-currency options

200 Countries and territories served

10,000+ corporate customers from various industries

500+ employees in 4 countries

24

Our two growth platforms

Built on innovation and differentiation

Stored value service International Gateway

Merchant Account

Risk & Identity

Consumer Account/ Wallet

Payment Gateway

Professional Services

Micropayments & Device Payments

On-Us Network

Card Programs

Stored Value Account

White Label Operations

Established feature rich, international

gateway and fraud solutions

UK FCA regulated, licensed e-money and

card issuer

25

The Optimal Payments service

Banks & Payment Schemes

Consumer Merchant

Merchant

Account

Payment

Gateway

Risk &

Compliance

Consumer

Account

Card

Issuing

Proprietary

Payment Cloud

Multi-

channel

Acquiring and Straight-Through Processing Issuing and Stored Value

$£€¥

26

Utility & Government

Software & services Retail

Financial services Charity

Sport & leisure

Clients in many industries

27

• 64% of smartphone owners are now using

their mobile devices to shop online, a fourfold

increase since June 2010 (eDigitalResearch 2012)

• 30% of NETBANX e-commerce

transactions now on mobile and smart devices

2010 $49bn

2013 $235bn

2017 $721bn

*Gartner: Worldwide mobile payment transaction values

Automatic mobile

browser

detection

Mobile friendly

user experience

No merchant re-

integration

required

Core markets growing rapidly Mobile driving new opportunities

28

Financials Reconciliation of EBITDA to profit / (loss) before tax

In US$ 000 FY 2013 FY 2012

EBITDA 52,212 27,563

Depreciation and amortisation 13,518 11,776

Interest on loans 995 1,800

Share option expense 4,512 3,931

Foreign exchange gain (893) (712)

Legal costs relating to US exit (17) (6)

Loss on disposal of assets 552 778

Supplementary management bonus - 5,620

Restructuring costs 832 731

Profit before provision for income taxes 32,713 3,645

*Per Note 30 to the FY 2013 Financial Statements

29

Financials Balance sheet – as at 31 December 2013

All in US$ millions

ASSETS 31-Dec-13 31-Dec-12 EQUITY AND LIABILITIES 31-Dec-13 31-Dec-12

Current assets 307.9 219.2 Current Liabilities 241.0 192.1

Cash and cash equivalents 164.4 82.2 Trade and other payables 100.8 58.8

Restricted cash 1.6 5.4 Payable to Members 123.4 110.2

Qualifying Liquid Assets – Members 128.0 118.1 NETELLER loyalty program liability 1.7 0.9

Trade and other receivables 4.8 6.0 Taxes payable 4.3 4.3

Prepaid expenses and deposits 9.1 7.5 Shareholder loans 9.5 -

Contingent consideration - 16.9

Provisions for merchant losses 0.7 0.8

Obligations under capital lease 0.6 0.2

Non-current assets 65.5 67.3 Non Current Liabilities 0.8 9.4

Property, plant & equipment 12.3 8.8 Shareholder loans - 9.0

Intangible assets 22.7 28.0 Obligations under capital lease 0.8 0.4

Goodwill 30.5 30.5 Shareholders Equity 131.6 85.0

Total Assets 373.4 286.5 Total Equity & Liabilities 373.4 286.5

30

Share price 27-Mar-2014: 413.50p

52 week intraday high (5-Mar-14): 519.5p

52 week intraday low (1-May-13): 127.0p

_________

Market cap: £ 667m ($1,107m*)

Fully diluted: £ 695m ($1,154m*)

* Based on $1.66:£ FX rate

Issued share capital: 161,333,346

Fully diluted shares: 168,077,214

(including all loan notes & LTIPs as at 28-Mar-2014 )

Share price performance

ISIN: GB0034264548

Ticker: OPAY

Market: AIM London

Index: FTSE AIM All Share

Major shareholders*

Franklin Templeton 12.9% (US)

Kames Capital 8.0% (UK)

Blackrock AM 6.7% (UK)

Old Mutual Global Investors 6.6% (UK)

Legal & General IM 3.9% (UK)

Standard Life 3.0% (UK)

* reflects positions above 3% on the register per

latest month end disclosure notifications

IIU Nominee’s shares fully placed with new and

existing institutional holders on 24 January 2014

(held c25% prior to this)

31

AIM Rules 26 Compliance

Visit www.optimalpayments.com for

• Major shareholders

• Reports and presentations

• Historical financial statements and annual reports

• Regulator new announcements and press releases

• Board of Directors, responsibilities and committees

• Full business description

• Corporate contacts and advisors

• Offices and addresses

Legal disclaimer

Certain statements in this document are forward-looking statements. These forward-looking statements speak

only as at the date of this document. These statements concern, or may affect, future matters and include

matters that are not facts. Such statements are based on current expectations and beliefs and, by their nature,

are subject to a number of known and unknown risks and uncertainties that could cause actual results and

outcomes to differ materially from any expected future results or performance expressed or implied by the

forward-looking statements. You are cautioned not to place undue reliance on these forward-looking

statements.

The information and opinions expressed in this document are subject to change without notice and neither the

Company nor any other person assumes any responsibility or obligation to update publicly or review any of

the forward-looking statements contained within this document, regardless of whether those statements are

affected as a result of new information, future events or otherwise.