Filed by: Deluxe Corporation
Pursuant to Rule 425 under the Securities Act of 1933
Commission File No.: 0-30791
Subject Company: eFunds Corporation
THESE SLIDES WERE SHOWN AT DELUXE'S ANNUAL MEETING OF SHAREHOLDERS ON AUGUST 4,
2000
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Shareholders Meeting
August 4, 2000
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CAUTIONARY STATEMENT
Statements and estimates that may be discussed in management's report to
shareholders are forward-looking as defined in the Private Securities Litigation
Reform Act of 1995, and, as such, are necessarily subject to risks and
uncertainties that could cause actual future results to differ materially from
those projected. Additional information about various factors that could cause
actual results to differ from those presented are contained in the quarterly
report or Forms 10-Q filed by Deluxe Corporation and eFunds Corporation for the
quarter ended June 30, 2000.
In addition, we have previously announced that, subject to receipt of a ruling
from the Internal Revenue Service that the transaction will be tax free, Deluxe
intends to distribute the balance of its interest in eFunds to its shareholders
through an exchange offer.
We urge investors and security holders to read eFunds Corporation's Registration
Statement on Form S-4, including the prospectus relating to the exchange offer,
when it becomes available because they will contain important information. When
these and other documents become available they may be obtained from the SEC's
web site at www.sec.gov. Holders of Deluxe common stock may also obtain each of
these documents (when they become available) for free by directing your request
to Deluxe Corporation, c/o Shareholder Services, P.O. Box 64873, St, Paul,
Minnesota, 55164-0873.
Comments made about the exchange offer shall not constitute an offer to sell or
the solicitation of an offer to buy, nor shall there be any sales of securities
in any state in which the offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state. No
offering of securities shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as amended.
Because of the limitations imposed by the Securities Act and applicable rules
and regulations, management cannot discuss the exchange offer. Because of those
legal limitations and because a successful exchange offer will affect the number
of Deluxe shares outstanding, management will not provide financial forecasts or
other similar forward looking financial information.
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REPORT TO SHAREHOLDERS
GUS BLANCHARD
CHAIRMAN AND CEO
DELUXE CORPORATION
Shareholders Meeting
August 4, 2000
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1999 in Review
1999 1998
Net earnings $203 million $143 million
Revenues $1.65 billion $1.93 billion
EPS $2.64 $1.77
Gross margin 55.1% 51.6%
SG&A 36.8% of sales 39.0% of sales
Op. income $302.1 million $243.0 million
18.3% of sales 12.6% of sales
EBITDA $408.5 million $323.7 million
DVA $126 million $94.0 million
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THANK YOU,
DELUXERS!
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JANUARY 31 ANNOUNCEMENT
DELUXE
CORPORATION
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[DELUXE LOGO] [E-FUNDS LOGO]
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STATUS OF THE SPLIT
o Two separate companies
-- Separate management teams
o IPO completed June 30
-- 5.5 million shares sold to public
-- Deluxe has 88% interest now
o Applied for tax-exempt status from IRS
o With IRS approval -- distribute shares
-- Questions will be answered
o Split-off completed late this year
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[DELUXE LOGO]
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LAST 5+ YEARS
o Divested almost 20 businesses
o Grew revenues in 4 retained businesses
o Created new professional services company
o Created DebitBureau(SM)
o Consolidated/closed >40 plants/ distribution centers
o Grew eFunds to >$300 million in revenue in 1999
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LAST 5+ YEARS, CONT.
Income from cont. ops. Grown 115%
Return on sales up 153%
EPS up 130%
Return on equity up 235%
Return on assets up 154%
Dividends paid out $599 million
Capital expenditures $563 million
Taxes $385 million
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THE SPLIT
o Two businesses . . .
-- Worth more than one company
-- Managed more effectively when separate
- Raise capital in their market segments
-- Attract and retain people
o Exchange offer -- shareholders can choose
THE RIGHT THING TO DO
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REPORT TO SHAREHOLDERS
LAWRENCE J. MOSNER
VICE CHAIRMAN
DELUXE CORPORATION
Shareholders Meeting
August 4, 2000
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"BUSINESS IS MORE THAN JUST SURVIVING."
THE FLEXIBLE ENTERPRISE
DAVID GEWIRTZ
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JUST SURVIVING IS NOT THE DELUXE WAY.
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WE BUILT THE BANDWAGON.
INNOVATION IS ALIVE AND WELL!
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WE WILL NOT
JUST SURVIVE.
o Culture
o Experience
o Resources
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CORE COMPETENCIES
o Personalization engineering
-- Mass customization
[] Units of one
-- 100,000,000 annually
o Direct marketing
-- Leverage information
[] Cross-sell / up-sell
o E-commerce capabilities
-- Existing Web sites
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SKILL SETS
o Manage information
o Manage relationships
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INTERNET NUMBERS
Checks Unlimited(TM) -> 30 million customers
2 billion impressions
Designer(R)Checks -> 10 million customers
Deluxe Business -> 1 million customers
Checks & Forms .5 million relationships
FIRST MOVER ADVANTAGE
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[Graphic detailing correlation between Direct Marketing, Personalization
Engineering and E-commerce Capabilities with the World Wide Web]
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LEVERAGE COMPETENCIES AND ASSETS
TARGET MORE CUSTOMERS
[Plaid Moon.com Logo]
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[Plaid Moon.com Logo]
o Targets consumers
o Allows them to create personalized items
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[Plaid Moon.com Logo]
[Graphic - Artist at computer] -> [Graphic - Rings] <- [Deluxe Logo]
Creativity Personalization/
Customization
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{Plaid Moon.com Logo]
[Graphic - Artist at computer with artist's tools around him]
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Leverage existing [Plaid Moon.com Logo]
customer
relationships
Drive Internet traffic
Increase share of wallet
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New Opportunities to Look at
Small businesses
Children Licensing of Platform
[up arrows]
PLAID MOON PLATFORM
[PlaidMoom.com Logo]
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Innovation
o Filed three patents (one more)
[PlaidMoom.com Logo]
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DELUXE
o Innovate
o Draw on core competencies
o Interdependent businesses
-- FI check printing
-- Direct channel check printing
-- Business forms
-- Dot-com
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JUST SURVIVING IS NOT FOR DELUXE!
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