Online Resources Corporation Strategic Performance 4th Quarter and Full Year 2002 Earnings Conferenc

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Online Resources CorporationStrategic
Performance4th Quarter and Full Year
2002Earnings Conference CallNasdaq ORCC
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Forward-looking Statements

•  
• The following information from Online Resources
  Corporation contains statements about future
  events and expectations of Online Resources,
  which are forward-looking statements. Any
  statement that is not a statement of historical
  fact may be deemed to be a forward-looking
  statement. These statements include
• Forecasts of growth in and penetration of Online
  Resources financial institution customer base,
  increases in the number and pricing of
  transactions being processed by financial
  institution customers and the industry in
  general, and growth in the number of consumers
  using online banking and bill payment services
• Statements regarding Online Resources plans for
  achieving profitability and its business outlook
  for 2002 and beyond
• Statements regarding Online Resources longer-term
  profit targets, including but limited to user
  adoption rates, gross margin, and net margin
  targets
• Statements regarding Online Resources cash
  position and its ability to cover operating
  losses and
• Other statements, including statements containing
  words such as anticipate, believe, plan,
  estimate, expect, seek, intend, and other
  similar words that signify forward-looking
  statements.
• Such forward-looking statements involve known and
  unknown risks, uncertainties and other factors
  which may cause our actual results, performance
  or achievements to be materially different from
  any future results, performance or achievements
  expressed or implied by such forward-looking
  statements. Specific factors that might cause
  such a difference include, but are not limited
  to our history of losses and anticipation of
  future losses our dependence on the marketing
  efforts of third parties the potential
  fluctuations in our operating results, in light
  of adjustments to be made as a result of recent
  financial accounting pronouncements and trends in
  the economy our potential need for additional
  capital our potential inability to expand our
  services and related products in the event of
  substantial increases in demand for these
  services and related products our competition
  our ability to attract and retain skilled
  personnel our reliance on our patents and other
  intellectual property the early stage of market
  adoption of the services we offer and
  consolidation of the banking and financial
  services industry.

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Chart 1 Financial Highlights Over Past 3 Years
Financial Highlights

• YE 1999 YE
  2002 GROWTH
• Revenue 8.4M 32.4M 57
• Gross Margin (8) 55 290
• EBITDA (12.5M) 3.6M 166
• EPS (2.45)
  (0.03) 77
• Compound Annual Growth Rate

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Chart 2 Distribution and Usage Over Past 3
Years
Distribution and Usage

• YE 1999 YE
  2002 GROWTH
• FI Clients 377
  534 12
• Potential Users 7.6M 9.9M 9
• Users 135K 623K 66
• Banking Adoption 2.7 11.2 61
• Billpay Adoption 1.6 4.2 38
• Transactions 11.6M 74.2M 86
• Bill payments 2.3M 16.5M 93
• Compound Annual Growth Rate

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Chart 3 Strategic Asset Development Over Past
3 Years
Strategic Assets

• YE 1999
  YE 2002
• Product solid Billpay
  strong Banking Billpay
• Infrastructure scale-up issues an
  industry leader in system and service
  quality
• 
  robust consumer marketing
• Market Position emerging strong
  in Billpay
• 
  gaining share in banking
• 
  
• Leadership entrepreneurial
  professional mgt processes
• Staff many new highly
  trained, experienced employees staff
  
• 
  

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Chart 4 - Targets Over the Next 3 Years
Strategic Assets

• GOALS
• Product enhanced consumer
  marketing and eCRM
• Infrastructure better plug play for
  third parties (J2EE)
• expanded payments
  capabilities
• Market Position continued share increase in
  Billpay
• increased share
  in banking
• 
  
• Leadership cultivating the next mgt
  generation
• Staff more opportunistic
  management through decentralization

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Chart 5 - Targets in 3 Years
Distribution and Usage

• GOALS
• FI Clients Less meaningful
  measure
• Potential Users 11-13M checking accounts
• Users 1.3M or more
• Banking Adoption 20-30
• Billpay Adoption 7-9
• Transactions 2-3 times present level
• Bill payments 3-4 times present level
• YE 2005

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Chart 6 - Targets in 3 Years
Financial Highlights

• GOALS
• Revenue 15 annual growth
  organically, plus
• additional growth -
  new products acquisitions
• Gross Margin 50-60, stabilized
• EBIT 10-15, going higher
• YE 2005

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Nasdaq ORCCFor more investor informationon
Online Resources

• Contact
• Beth Halloran
• Director, Corporate Communications
• 703.394.5248
• bhalloran_at_orcc.com