Exhibit 99.01
| Investor Relations Q3 2006 Helping people and businesses by providing affordable, reliable and convenient payment services |
| The statements contained in this presentation regarding the business of MoneyGram International, Inc. that are not historical facts are forward-looking statements and are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances due to a number of factors, including, but not limited to: (a) loss of key retail agents or inability to maintain our network in our Global Funds Transfer segment; (b) loss of large financial institution customers in our Payment Systems segment; (c) ability to successfully develop and timely introduce new and enhanced products and services; (d) ability to protect the intellectual property rights related to our existing and any new or enhanced products and services; (e) litigation or investigations of us or our agents that could result in material settlements, fines or penalties; (f) failure to continue to compete effectively; (g) ability to manage risks relating to U.S. federal and state regulatory requirements that could result in material settlements, fines or penalties, or changes in our business operations; (h) ability for us or our agents to maintain adequate banking relationships; (i) imposition of additional regulatory requirements in any of the foreign countries in which we operate; (j) ability to manage risks related to opening of new retail locations and acquisition of businesses; (k) ability to maintain effective internal controls; (l) ability to manage credit and fraud risks from our retail agents; (m) ability to manage credit risk related to our investment portfolio and our use of derivatives; (n) fluctuations in interest rates; (o) material changes in the market value of securities we hold; (p) material slow down or complete disruption in international migration patterns; (q) unexpected liquidity needs; (r) ability to maintain efficient, secure and uninterrupted operation of our computer network systems and data centers; (s) ability to process and settle transactions accurately and efficiently; (t) ability to manage risks associated with our international sales and operations; (u) possible delay or prevention of an acquisition of our company which could inhibit a stockholder's ability to receive a premium on their investment from a possible sale of our company due to provisions contained in our charter documents, our rights plan and Delaware law; and (v) other factors more fully discussed in MoneyGram's filings with the Securities and Exchange Commission. Actual results may differ materially from historical and anticipated results. These forward-looking statements speak only as of the date on which such statements are made, and MoneyGram undertakes no obligation to update such statements to reflect events or circumstances arising after such date. Forward Looking Statements |
| MoneyGram International, Inc. Our Purpose: Helping people and businesses by providing affordable, reliable and convenient payment services Our Corporate Values: Respect, Courage, Passion, Integrity, Teamwork MoneyGram International Value Proposition Shareholder Value |
| Controlled Disbursement PrimeLink Suite Financial Money Orders Products Money Transfer Retail Money Orders Global Funds Transfer Payment Systems Urgent Bill Payment We Operate Two Business Segments |
| Q305 Q306 Global Funds Transfer 167 213 Payment Systems 79 82 Segment Financial Performance Revenue 167 79 213 82 Q305 Q306 Global Funds Transfer 35 39 Payment Systems 8 8 35 39 8 8 Operating Income Global Funds Transfer Payment Systems $ in Millions |
| YTD Sep 05 YTD Sep 06 Global Funds Transfer 474 598 Payment Systems 240 254 Segment Financial Performance Revenue 474 240 598 254 YTD Sep 05 YTD Sep 06 Global Funds Transfer 91 119 Payment Systems 32 34 91 119 32 Operating Income Global Funds Transfer Payment Systems $ in Millions 34 |
| Quarter 3 2006 Highlights Money Transfer Transaction Volume up 40% Money Transfer Network - 104,000 Agent Locations Q306 EPS from Cont Ops $0.35 vs Q305 $0.33 YTD Q306 EPS from Cont Ops $1.13 vs YTD Q305 $0.96 Repurchased 580,000 shares at $30.18 per share |
| Payment Systems Segment Overview |
| "Official Checks" - Primary product within Payment Systems. Full service turn-key outsourcing program for a bank's official "Good Funds" check products. Web-based check issuance solution combined with local or remote MICR printing technology to create a secure, client-controlled "Good Funds" check on demand. Money order program tailored to the needs of the Financial Institution Processor of rebate checks and WIC payments Payment Systems Product Suite MoneyGram PrimeLink MoneyGram PrimeLink Plus MoneyGram Money Orders MoneyGram FSMC |
| Provide discernable value in mutually beneficial relationships Expand distribution channels and delivery methods Delivering new payment products & related financial services Payment Systems Key Strategies |
| Investment Portfolio Overview |
| Portfolio Objectives Provide liquidity for payment services obligations Protect Principal Generate attractive long-term returns |
| Portfolio Background Investments are generated from the Official Checks and Money Order products and our Retained Earnings MGI generates investment income from float balances associated with its PrimeLink and Money Order businesses Established business provides for predictable "core" float PrimeLink instruments have an average float duration of 3-5 days and comprise approximately 80% of the float Money Orders have an average float duration of 7-9 days and comprise approximately 20% of the float |
| '98 '99 '00 '01 '02 '03 '04 '05 Total 2.3 3 3.8 4.9 6.1 7 6.8 6.7 ($ in billions) In late 2002 and 2003 mortgage refinance activity increased balances In 2004, refinance activity declined In 2005, client financial institution consolidation resulted in lower balances Portfolio Size |
| Global Funds Transfer Segment Overview |
| Product Overview MoneyGram Money Transfer eMoneyTransfer Multi-Currency Directed Sends Consumer Payments Express Payment Convenience Payments Money Orders Consumer Purchases Prepaid Card |
| Money Transfer Industry |
| Money Transfer Statistics 32.8% 24.8% Volume Revenue 5 Year CAGRs* MoneyGram's Increasing Market Share1 Other WU MG Relative Market Share 82 15 3 Market Share1 1Source: Aite * Includes Urgent Bill Payment |
| 191 million people live outside their country of origin1 USA Russia Germany Ukraine France Saudi Arabia Canada India UK Australia China Pakistan UAE Israel Kazakhstan Italy Ivory Coast Immigrants (In millions) 38.4 12.1 10.1 6.8 6.5 6.4 6.1 5.7 5.4 4.1 3.9 3.3 3.2 2.7 2.5 2.5 2.4 Host Country 20 8 4 4 4 4 3 3 3 2 2 2 2 1 1 Immigrants (In millions) Percentage of all Immigrants 38.4 12.1 10.1 6.8 6.4 6.1 5.7 4.1 3.9 5.4 3.3 3.2 2.4 2.0 1Source: International Organization for Migration Money Transfer - Industry Overview 6.5 2.7 2.5 2.5 |
| Industry Growth CAGR 8% Vast and growing market 1Source: Aite |
| MG View of Industry Two consumers served in every transaction: Sending Customer Working in host country Low to middle income Strong family ties Receiving Customer Family members remaining in home country Lifetime journey Used for necessities "To help people and businesses by providing affordable, reliable and convenient payment services" |
| Agent Locations - by region 28,900 18,200 3,800 8,300 34,700 10,100 *as of 9/30/06 |
| Money Transfer Diversifying Geographically Mexico 24% Other 76% Mexico 12% Other 88% % of Total Transaction Volume Other = International + Domestic + Express Payment 2000 2005 |
| Consumer Payments Payments to businesses Bill payment / Prepaid top-up In person - guaranteed funds Agent Network Leverages domestic MG network 26,000 agent locations Biller Network 1,500 premier billers Auto/Sub-Prime Cards Mortgage Other Industries General Motors Total Systems GMAC Mortgage Nextel Ford Capital One Wells Fargo Dish Network Honda MBNA (BofA) Centex DirecTV AmeriCredit HFC (HSBC) Wachovia Geico JPM Chase Consumer Payments |
| Consumer Choice |
| or Sending Money Receiving Money Channels For Payment Services Contact point Method of Payment Method of Payment Currency Type Retail Cash Internet Card Phone Account Cash/MO at retail Cash at home Account Deposit Card Deposit Local Dollar/Euro Transaction Processing Systems |
| GFT Keys To Future Growth Provide best value to consumers and tell them about it Expand our distribution capabilities Deliver new payment products and relevant financial services through our channels |
| Summary |
| Company Highlights Clear strategies for growth Favorable end-market dynamics A leader in payment services solutions and platforms Leveragable platform Long-term contracts Long-term financial goals of double-digit revenue and earnings growth, and return on equity of 16-20% Attractive financial profile; cash flow, margins, minimal debt, diverse and recurring revenues |