Jose Luis SoriaContinuous Improvement Manager

jsoriat@riafinancial.com

@jlsoriat #lkse15

Lean Kanban at Ria Money Transfer

Madrid, April 21st 2015

We are Ria…

The third largest money transfer company in the world and part of an industry that moves more than $500 billion each year.

Ria exists thanks to the dreams of some 232 million international migrants that left their homes in search of something more.

Many don’t have access to traditional banking services, so we provide a secure, reliable and affordable way for them to send money home to their loved ones.

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EURONET WORLDWIDE, Inc. (NASDAQ: EEFT)

• Largest Independent ATM deployer in Central & Eastern Europe

• Largest independent shared ATM network in India

• Payment Systems Software licensed by 126 customers in 54 countries

• Consumer-to-consumer and business-to-business money transfer services

• Available in over 130 countries through a network of 243,000+ agent & store locations

• Extensive global electronic payment and distribution network

• 200+ agreements with mobile operators

• 100+ agreements with non-mobile content providers

RIA IS PART OF EURONET WORLDWIDE

EFT Processing Money Transfer Payments & Prepaid

THE MONEY TRANSFER SEGMENT

EFT

Third largest global money transfer company

Founded in 1987, 2,400+ employees

Services in over 130 countries through a network of 243,000+

agent & store locations

Serves migrant workers, unbanked and underbanked individuals

Moved $12.2B principal in 2014

Provides foreign exchange and payment services

Founded in the UK with operations in Australia, New

Zealand, and Spain

Acquired by Euronet in 2014

Serves corporates – typically SMEs - and individuals – typically white-

collar workers

Moved $8.2B principal in 2014

RIA HISTORY

1987 1993-2002 2005 2007

2010 2011 2012 2014

Ria launches in New York City

Expands to Europe: Spain, France, Italy, UK & Germany

Opens office in Australia

Ria is acquired by Euronet Worldwide Inc.

A hub in Dakar, Senegal is opened

A hub in Mumbai, India is opened

riamoneytransfer.com launches in the US

launches in the US

Sources: United Nations www.unpopulation.org, www.financialaccess.org, World Bank

• Our Target Customers:o Migrant Workers estimated at 232 million

o Underbanked/Unbanked - 2.5 billion adults, over half of the world’s adult population, do not use formal financial services to save or borrow

• Remittance flows to developing countries reached $435 billion in 2014, 7.8% growth over the previous year

• Global remittances, including those to developed/high-income countries, estimated at $581 billion in 2014, will rise to $681 billion in 2016

THE CUSTOMERS WE SERVE

Migrant Supporters

Sends for: regular support

Looks for: value, speed, reliability

Thoughtful Gifters

Sends for: gifts on special occasions

Looks for: convenience, reliability, speed

Professional Achievers

Sends for: gifts, payment, investment

Looks for: simplicity, convenience, safety

Education Sponsors

Emergency Saviors

Sends for: ongoing support, gifts, assistance

Looks for: convenience, reliability, speed

Established Immigrants

Sends for: ongoing support, gifts, investment

Looks for: convenience, simplicity, reliability

OUR CUSTOMER NEEDS AND USE CASES

Tenure in the Host Country

Fin

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ltu

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Mo

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Mo

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en

t O

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We strive to offer the most simple, reliable and friendly money transfer service. We go to great lengths to ensure people's hard-earned money is received by their families wherever they may be around the globe.

THE SERVICES WE PROVIDE

Bill Payment

Check Cashing

Prepaid Airtime Products

9

Money Transfer

NETWORK OF GLOBAL STORES AND AGENTS

Americas 66,000+ locations 151 stores

Asia Pacific125,000+ locations 3 stores

Customer Service and Regional Offices: Call Centres in USA, Spain, El Salvador, India, Senegal, Philippines, China

Global HQ, California, U.S.AEMEASA HQ, Madrid, Spain

243,000+ locations in 130+ countries22 licensed money transfer countries

60 money transfer-originating countries

Europe38,000+ locations 74 stores

Africa14,000+ locations

110.000

146.000

177.000

216.000243.000

2010 2011 2012 2013 2014

Location Count

CAGR 4Yrs: 22%

NETWORK GROWTH

Locations by Region 2014

18,8 20,723,7

27,8

40,4

2010 2011 2012 2013 2014

Money Transfer Transaction GrowthMillion transactions

CAGR 4Yrs: 21%

Africa + Oceania

6%

N. America10%

Europe16%

LAC17%

ASIA51%

DISTRIBUTION CHANNELS

AGENT LOCATIONS

COMPANY OWNEDSTORES

SELF SERVICEONLINE

SEND

AGENT LOCATIONS

COMPANY OWNEDSTORES

BANKS

POST OFFICE

RETAILERS

ATMs

PAYOUT

MONEY TRANSFER TRANSACTION FLOW

We take our responsibility seriously, and we’re proud of our record.

With dedicated Compliance Officers and Certified Anti-Money Laundering Team, Ria regularly conducts:

• Agent Verification, Documentation and Credit Review

• Onsite and Offsite Agent Visits, Automated and Over-the-PhoneTransaction Monitoring and Verification

• In-depth Compliance Training

“At Ria, compliance is everyone’s responsibility.”

REGULATORY AUTHORITIES

United States of America:

Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC).

States and Local Governments

States Licenses: Ria holds licenses to conduct the services of money transmission and the sale of checks (e.g., money orders) in all 48 states regulating these services, plus the District of Columbia (D.C.), Puerto Rico and the US Virgin Islands.

Europe: Financial Conduct Authority (FCA)

United Kingdom, EPS Countries (France, Germany, Finland, Netherlands, Luxembourg, Cyprus, Norway, Denmark, Poland)

Australia: Licensed by Australian Securities & Investments Commission (“ASIC”).

Launched riamoneytransfer.com

Went live with Walmart2Walmart

Acquired HiFX

Named Supplier of the Year by Walmart

Added 30k+ locations

Obtained money transfer license in India

Euronet (EEFT) stock price has gained ~50% in the last 15 months

2014 HIGHLIGHTS

GLOBAL STORES

CANADA

SPAIN CHILE

USA

Culture

Culture

Processes

Larman's Laws Of Organizational Behavior

• Organizations are implicitly optimized to avoid changing the status quo middle- and first-level manager and “specialist” positions & power structures.

• Corollary: any change initiative will be reduced to redefining or overloading the new terminology to mean basically the same as status quo.

• Corollary: any change initiative will be derided as “purist”, “theoretical”, “revolutionary”, and “needing pragmatic customization for local concerns” - which deflects from addressing weaknesses and manager/specialist status quo.

• Culture follows structure.

Continuous improvement?

Operations

MONEY TRANSFER TRANSACTION FLOW

DISTRIBUTION CHANNELS

AGENT LOCATIONS

COMPANY OWNEDSTORES

SELF SERVICEONLINE

SEND

AGENT LOCATIONS

COMPANY OWNEDSTORES

BANKS

POST OFFICE

RETAILERS

ATMs

PAYOUT

110.000

146.000

177.000

216.000243.000

2010 2011 2012 2013 2014

Location Count

CAGR 4Yrs: 22%

NETWORK GROWTH

Locations by Region 2014

18,8 20,723,7

27,8

40,4

2010 2011 2012 2013 2014

Money Transfer Transaction GrowthMillion transactions

CAGR 4Yrs: 21%

Africa + Oceania

6%

N. America10%

Europe16%

LAC17%

ASIA51%

Start with what you know

Pursue incremental, evolutionary change

Respect the current process, roles, responsibilities

Kanban principles

Visualize workflow

Limit WIP

Manage flow

Make policies explicit

Improve collaboratively

Kanban core properties

Start with what you know

Pursue incremental, evolutionary change

Respect the current process, roles, responsibilities

Kanban principles

Visualize workflow

Limit WIP

Manage flow

Make policies explicit

Improve collaboratively

Kanban core properties

How is it going?

IT

IT

DISTRIBUTION CHANNELS

AGENT LOCATIONS

COMPANY OWNEDSTORES

SELF SERVICEONLINE

SEND

AGENT LOCATIONS

COMPANY OWNEDSTORES

BANKS

POST OFFICE

RETAILERS

ATMs

PAYOUT

MONEY TRANSFER TRANSACTION FLOW

NETWORK OF GLOBAL STORES AND AGENTS

Americas 66,000+ locations 151 stores

Asia Pacific125,000+ locations 3 stores

Customer Service and Regional Offices: Call Centres in USA, Spain, El Salvador, India, Senegal, Philippines, China

Global HQ, California, U.S.AEMEASA HQ, Madrid, Spain

243,000+ locations in 130+ countries22 licensed money transfer countries

60 money transfer-originating countries

Europe38,000+ locations 74 stores

Africa14,000+ locations

Cycle time = WIP / Throughput

Little’s Law

Reducing WIP: Portfolio management

Reducing WIP: Portfolio management

• By cost of delay

• Weighted Shortest Job First

Priority = (Value + Criticality + Risk Reduction) / Size

Prioritization

Business Value Time Criticality Risk Reduction Size Priority Index

L S XS XL 1000

S S S S 333

XL L XL XS 59

Communication

PROJECT HIGH-LEVEL BUSINESS GOAL

IN SCOPE FOREXPECTED DELIVERY

BUSINESS HOLDERS IT OWNERSTHIS MONTH NEXT MONTH LATER UNKNOWN

Project 1 Goal 1 X Compliance Team 1, Team 2

Goal 2 X Operations Team 2

Goal 3 X Late June Compliance PO 1

Project 2 Goal 1 X May Operations, Sales Team 3

Goal 2 X Marketing PO 2

Increasing throughput: bottlenecks

Identify theconstraint

Exploit theconstraint

Subordinate to the constraint

Elevate theconstraint

Repeat

Theory of constraints

Identify the constraint

Identify the constraint

Lean principles

• Eliminate waste

• Amplify learning

Exploit the constraint

Lean principles

• Decide as late as possible

• Deliver as fast as possible

• Empower the team

• Build integrity in

• See the whole

Subordinate to the constraint

Lean principles

• Deliver as fast as possible

• Empower the team

• Build integrity in

• See the whole

Elevate the constraint

Support levels

Support levels

Repeat

• Evolutionary change. A small improvement is waybetter that no improvement at all.

• Backlogs/queues are waste. Be very selective aboutwhat you put in the backlog.

• Be very selective about the work you address next.

• Take care of communication.

• Use your toolbox!

Some takeaways

We are hiring! http://bit.ly/1Dwn0Ha

Get the slides: http://slideshare.net/jlsoria

Free ebook: http://aka.ms/releasepipeline

jsoriat@riafinancial.com

@jlsoriat #lkse15

Questions? – Thanks!