Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — FY2024 Earnings Presentation
72 slides from Lesaka Technologies's earnings presentation, Sep 12, 2024
Slide 1: Q4 and FY24 Results Presentation
FY24 Q4 Results | 1 Q4 and FY24 Results Presentation September 12, 2024
Slide 2: Safe harbor statement
FY24 Q4 Results | 2 Safe harbor statement The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements so long as such information is identified as forward- looking and is accompanied by meaningful cautionary statements identifying important fa
Slide 3: Agenda
FY24 Q4 Results | 3 Agenda Overview Ali Mazanderani – Chairman Merchant Division Steven Heilbron – CEO Merchant Division & Head of Corporate Development Consumer Division Lincoln Mali – CEO Southern Africa Financial Performance Naeem Kola – CFO Group Structure Ali Mazanderani – Chairman Outlook Ali
Slide 4: GAAP Income Statement for the quarter (FY24 Q4, FY23 Q4, FY24 Q3)
FY24 Q4 Results | 4 GAAP Income Statement for the quarter (FY24 Q4, FY23 Q4, FY24 Q3) ZAR’000 $’000 % Growth % Growth For the quarter FY24 Q4 FY23 Q4 YoY FY24 Q3 FY24 Q4 FY24 Q3 YoY FY24 Q3 Average exchange rate for conversion from ZAR to $ R18.47 R18.74 (1.5%) R18.88 R18.47 R18.74 (1.5%) R18.88 Rev
Slide 5: GAAP Income Statement for the year (FY24 and FY23)
FY24 Q4 Results | 5 GAAP Income Statement for the year (FY24 and FY23) ZAR’000 $’000 % Growth % Growth Year ended 30 June FY24 FY23 YoY FY24 FY23 YoY Average exchange rate for conversion from ZAR to $ R18.68 R17.94 4.1% R18.68 R17.94 4.1% Revenue 10 553 233 9 471 800 11.4% 564 222 527 971 6.9% Expen
Slide 6: Overview
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Slide 7: FY24 and FY24 Q4 | Continuation of our strong & consistent performance
FY24 Q4 Results | 7 OVERVIEW FY24 and FY24 Q4 | Continuation of our strong & consistent performance For the year For the quarter MERCHANT DIVISION Financial period FY23 FY24 Growth FY23 Q4 FY24 Q4 Growth Ended 30 June Revenue R9 472 million R10 553 million 11% R2 495 million R2 711 million 9% CO
Slide 8: Merchant Division
Merchant Division
Slide 9: Merchant revenue drivers Q4 FY24 | VAS and supplier payments
FY24 Q4 Results | 9 OVERVIEW Merchant revenue drivers Q4 FY24 | VAS and supplier payments MERCHANT Value-Added Services and supplier payments | For the quarter DIVISION 2-year CAGR 45% Devices1 deployed 31% yoy 87 500+ | ▲17% (yoy) R8.0bn 2-year CAGR 31% CONSUMER DIVISION 61% yoy R6.1bn PERFORMANCE
Slide 10: Merchant revenue drivers FY24 | VAS and supplier payments
FY24 Q4 Results | 10 OVERVIEW Merchant revenue drivers FY24 | VAS and supplier payments MERCHANT Value-Added Services and supplier payments | For the year DIVISION 2-year CAGR 49% Devices1 deployed 43% yoy 87 500+ | ▲17% (yoy) 2-year CAGR 31% CONSUMER DIVISION R30.6bn 56% yoy R21.4bn PERFORMANCE FIN
Slide 11: Merchant revenue drivers FY24 Q4 | Card acceptance
FY24 Q4 Results | 11 OVERVIEW Merchant revenue drivers FY24 Q4 | Card acceptance MERCHANT Card Acceptance | For the quarter DIVISION 2-year CAGR 47% Devices1 deployed 20% yoy 51 850+ | ▲15% (yoy) 2-year CAGR 51% CONSUMER DIVISION R4.1bn 83% yoy R3.4bn PERFORMANCE FINANCIAL R1.8bn OUTLOOK FY22 Q4 FY2
Slide 12: Merchant revenue drivers FY24 | Card acceptance
FY24 Q4 Results | 12 OVERVIEW Merchant revenue drivers FY24 | Card acceptance MERCHANT Card Acceptance | For the year DIVISION 2-year CAGR 60% Devices1 deployed 30% yoy 51 850+ | ▲15% (yoy) R15.6bn 2-year CAGR 51% CONSUMER DIVISION 97% yoy R12.0bn PERFORMANCE FINANCIAL R6.1bn OUTLOOK FY22 FY23 FY24
Slide 13: Merchant revenue drivers FY24 Q4 | Cash management solutions
FY24 Q4 Results | 13 OVERVIEW Merchant revenue drivers FY24 Q4 | Cash management solutions MERCHANT Digitalization of Cash | For the quarter DIVISION 2-year CAGR 3% Devices1 deployed 4% yoy 4 440+ | ▲1% (yoy) 2-year CAGR 4% CONSUMER DIVISION 2% yoy R28.1bn R26.3bn R26.9bn PERFORMANCE FINANCIAL OUTLO
Slide 14: Merchant revenue drivers FY24 | Cash management solutions
FY24 Q4 Results | 14 OVERVIEW Merchant revenue drivers FY24 | Cash management solutions MERCHANT Digitalization of Cash | For the year DIVISION 2-year CAGR 5% Devices1 deployed 2% yoy 4 440+ | ▲1% (yoy) 2-year CAGR 4% CONSUMER DIVISION 8% yoy R110.1bn R112.6bn R102.1bn PERFORMANCE FINANCIAL OUTLOOK
Slide 15: Merchant revenue drivers FY24 Q4 | Lending
FY24 Q4 Results | 15 OVERVIEW Merchant revenue drivers FY24 Q4 | Lending MERCHANT Lending1 | For the quarter DIVISION 2-year CAGR² 1% (15%) yoy² CONSUMER DIVISION R333m 19% yoy² R284m R262m R294m R241m R284m PERFORMANCE R229m FINANCIAL R175m R154m R180m R151m R154m OUTLOOK FY22 Q4 FY23 Q4 FY24 Q4 Ca
Slide 16: Merchant revenue drivers FY24 | Lending
FY24 Q4 Results | 16 OVERVIEW Merchant revenue drivers FY24 | Lending MERCHANT Lending1 | For the year DIVISION 2-year CAGR² 9% (7%) yoy² CONSUMER DIVISION 28% yoy² R1 029m R 739m PERFORMANCE FINANCIAL R 636m R769m R716m R601m R333m R284m R241m R294m R284m R229m OUTLOOK FY22 FY23 FY24 Capital Connec
Slide 17: Merchant revenue drivers | Enterprise
FY24 Q4 Results | 17 OVERVIEW Merchant revenue drivers | Enterprise EasyPay VAS and bill payments MERCHANT DIVISION • Strategically important asset with scale comprising EasyPay, Prism & PrismPOS For the quarter For the year - Servicing 750+ clients (23%) yoy 0.1% yoy - 600+ billers and continue to
Slide 18: Merchant performance Q4 FY24
FY24 Q4 Results | 18 OVERVIEW Merchant performance Q4 FY24 MERCHANT Merchant Segment Revenue (Rm) Merchant Segment Adjusted EBITDA (Rm) DIVISION 10% yoy (1%) yoy 1 R2 378m CONSUMER R 154m R 153m DIVISION R2 159m R 135m R 143m PERFORMANCE FINANCIAL OUTLOOK R 19m R 10m FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4
Slide 19: Merchant performance FY24
FY24 Q4 Results | 19 OVERVIEW Merchant performance FY24 MERCHANT Merchant Segment Revenue (Rm) Merchant Segment Adjusted EBITDA (Rm) DIVISION 12% yoy 4% yoy R9 320m R 624m R8 319m R 602m CONSUMER DIVISION R 585m R 507m 15% yoy¹ PERFORMANCE FINANCIAL OUTLOOK R95m R39m FY23 FY24 FY23 FY24 Merchant Div
Slide 20: Merchant Division | Looking forward
FY24 Q4 Results | 20 OVERVIEW Merchant Division | Looking forward MERCHANT DIVISION B2B | Merchant Division¹ 120 200+ Merchants¹ ZAR 270+ billion in throughput annually¹ CONSUMER DIVISION Micro-Merchant¹ Merchant¹ Enterprise 90 200+ Merchants¹ 29 380+ Merchants¹ 750+ Clients² PERFORMANCE FINANCIAL Z
Slide 21: Consumer Division
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Slide 22: Attractive Total Addressable Market and Serviceable Addressable Market
FY24 Q4 Results | 22 OVERVIEW Attractive Total Addressable Market and Serviceable Addressable Market Focused value proposition servicing a specific sector within the consumer market MERCHANT DIVISION Consumers* LSM1 1 to 6 in South Africa 4% 5% TAM CONSUMER 6% DIVISION ~26m 29% 7% SAM Post Bank ~12m
Slide 23: Growth in EPE base | Continued momentum in cross selling & upselling
FY24 Q4 Results | 23 OVERVIEW Growth in EPE base | Continued momentum in cross selling & upselling initiatives Products and service channels designed to meet our customers’ needs Momentum in driving customer acquisition Deepening our relationship with our customers MERCHANT DIVISION For the quarter
Slide 24: Consumer | Offering straight forward and cost-effective Financial Services
FY24 Q4 Results | 24 OVERVIEW Consumer | Offering straight forward and cost-effective Financial Services KPIs FY24 Q4 MERCHANT BANKING SHORT-TERM LOANS PERSONAL INSURANCE DIVISION CONSUMER DIVISION ~1.5m R548m ~439 000 Active EPE customers Loan book before allowances Active insurance policies ▲19% Y
Slide 25: Differentiated offering with obsession around our customer
FY24 Q4 Results | 25 OVERVIEW Differentiated offering with… Obsession around our customer MERCHANT DIVISION What our customers are saying: Don’t feel it Enough time CONSUMER DIVISION Easy from when the money my phone, to pay back comes off Helped me no queues repair my roof PERFORMANCE FINANCIAL Acc
Slide 26: Repositioned EasyPay Everywhere brand
FY24 Q4 Results | 26 OVERVIEW Repositioned EasyPay Everywhere brand To one that resonates with our customers MERCHANT DIVISION Optimally located points of presence Digital strategy VAS offering & loyalty programmes CONSUMER DIVISION PERFORMANCE FINANCIAL OUTLOOK APPENDIX
Slide 27: EPE Growth strategy yielding encouraging results | Q4 FY24
FY24 Q4 Results | 27 OVERVIEW EPE Growth strategy yielding encouraging results | Q4 FY24 Momentum in delivering growth in client base and ARPU¹ MERCHANT Consumer Segment Revenue (Rm) Consumer Segment Adjusted EBITDA 2 (Rm) DIVISION 14% yoy 94% yoy 4% qoq 10% qoq CONSUMER DIVISION PERFORMANCE R90m R8
Slide 28: EPE Growth strategy yielding encouraging results | FY24
FY24 Q4 Results | 28 OVERVIEW EPE Growth strategy yielding encouraging results | FY24 Momentum in delivering growth in client base and ARPU¹ MERCHANT Consumer Segment Revenue (Rm) Consumer Segment Adjusted EBITDA 2 (Rm) Delivery against DIVISION strategic focus areas 15% yoy 361% yoy 1. Grow CONSUME
Slide 29: Financial Highlights
Financial Highlights
Slide 30: We have demonstrated strong growth in revenue and profitability
FY24 Q4 Results | 30 OVERVIEW We have demonstrated strong growth in revenue and profitability Consistent execution against our strategic objectives Group revenue (ZAR) Group adjusted EBITDA 1 (ZAR) Operating income (loss)(ZAR) MERCHANT DIVISION 11% 55% Improved Connect acquisition R10.6bn R343m only
Slide 31: Group Revenue for Q4 2024 and FY2024
FY24 Q4 Results | 31 OVERVIEW Group Revenue for Q4 2024 and FY2024 Consistent execution MERCHANT Group Revenue DIVISION For the quarter For the year 9% yoy 11% yoy R10 553m CONSUMER R2 711m DIVISION R9 472m R9 320m R2 495m R2 378m R8 319m R2 159m 10% yoy 12% yoy PERFORMANCE FINANCIAL R309m 14% yoy R
Slide 32: Group Adjusted EBITDA for Q4 2024 and FY2024
FY24 Q4 Results | 32 OVERVIEW Group Adjusted EBITDA for Q4 2024 and FY2024 Consistent execution MERCHANT Group Adjusted EBITDA DIVISION For the quarter For the year 30% yoy 55% yoy R 691m R190m CONSUMER DIVISION R624m R146m R153m R 445m R154m R602m (1%) yoy 4% yoy PERFORMANCE FINANCIAL R90m R274m 94
Slide 33: GAAP Income Statement for the year (FY24 and FY23)
FY24 Q4 Results | 33 OVERVIEW GAAP Income Statement for the year (FY24 and FY23) ZAR’000 $’000 % Growth % Growth Year ended 30 June FY24 FY23 YoY FY24 FY23 YoY MERCHANT DIVISION Average exchange rate for conversion from ZAR to $ R18.68 R17.94 4.1% R18.68 R17.94 4.1% Revenue 10 553 233 9 471 800 11.4
Slide 34: Segmental EBITDA analysis for the year (FY24 and FY23)
FY24 Q4 Results | 34 OVERVIEW Segmental EBITDA analysis for the year (FY24 and FY23) ZAR’000 $’000 Year ended 30 June FY24 FY23 % Growth FY24 FY23 % Growth MERCHANT Average exchange rate for conversion from ZAR to $ R 18.68 R 17.94 4.1% R 18.68 R 17.94 4.1% DIVISION Revenue Merchant 9 320 468 8 318
Slide 35: GAAP Income Statement for the quarter (FY24 Q4, FY23 Q4, FY24 Q3)
FY24 Q4 Results | 35 OVERVIEW GAAP Income Statement for the quarter (FY24 Q4, FY23 Q4, FY24 Q3) ZAR’000 $’000 % Growth % Growth MERCHANT For the quarter FY24 Q4 FY23 Q4 YoY FY24 Q3 FY24 Q4 FY24 Q3 YoY FY24 Q3 DIVISION Average exchange rate for conversion from ZAR to $ R18.47 R18.74 (1.5%) R18.88 R18
Slide 36: Segmental EBITDA analysis for the quarter (FY24 Q4 and FY23 Q4)
FY24 Q4 Results | 36 OVERVIEW Segmental EBITDA analysis for the quarter (FY24 Q4 and FY23 Q4) ZAR’000 $’000 Q4 - ended 30 June FY24 Q4 FY23 Q4 % Growth FY24 Q4 FY23 Q4 % Growth Average exchange rate for conversion from ZAR to $ R18.47 R18.74 (1.5%) R18.47 R18.74 (1.5%) MERCHANT DIVISION Revenue Merc
Slide 37: Segmental EBITDA analysis for the quarter (FY24 Q4 and FY24 Q3)
FY24 Q4 Results | 37 OVERVIEW Segmental EBITDA analysis for the quarter (FY24 Q4 and FY24 Q3) ZAR’000 $’000 For the quarter FY24 Q4 FY24 Q3 % Growth FY24 Q4 FY24 Q3 % Growth Average exchange rate for conversion from ZAR to $ R18.47 R 18.88 (2.2%) R18.47 R18.88 (2.2%) MERCHANT DIVISION Revenue Mercha
Slide 38: Fundamental and Basic earnings per share
FY24 Q4 Results | 38 OVERVIEW Fundamental and Basic earnings per share MERCHANT Fundamental¹ earnings (loss) per share (ZAR) Basic (loss) per share (ZAR) DIVISION For the quarter For the year For the quarter For the year Improved Improved Improved Improved R1.18 R3.72 R2.06 R4.82 CONSUMER per share
Slide 39: Delivering positive cash from business operations at Group level
FY24 Q4 Results | 39 OVERVIEW Delivering positive cash from business operations at Group level MERCHANT Net Cash provided by (used in) operating activities (ZAR) DIVISION For the quarter For the year Improved R531m R183m R538m CONSUMER Improved R109m DIVISION R104m R7m PERFORMANCE FINANCIAL (R5m) (R
Slide 40: Leverage ratio improved with focus on reducing debt & growing Group Adjusted EBITDA
FY24 Q4 Results | 40 OVERVIEW Leverage ratio improved with focus on reducing debt & growing Group Adjusted EBITDA Generating positive cash flow at an operational level Summary Group cash flow (Rm) FY24 Q4 FY24 Q3 FY24 Q2 FY24 Q1 Ordinary working capital requirements stable Cash generated from busine
Slide 41: CAPEX primarily driven by growth
FY24 Q4 Results | 41 OVERVIEW CAPEX primarily driven by growth Capex (Rm) FY23 Q4 FY24 Q2 FY24 Q3 FY24 Q4 FY23 FY24 MERCHANT DIVISION Capex 55 41 56 87 290 237 Capex CONSUMER R87m DIVISION R25m | Kazang • Point-of-sales devices on average have a payback of < 4 months and a 36-month useful life PERFO
Slide 42: Group Structure
Group Structure
Slide 43: Going forward Lesaka will be run in distinct pillars
FY24 Q4 Results | 43 Going forward Lesaka will be run in 4 distinct pillars 30 June 2024 CONSUMER B2C | CONSUMER DIVISION¹ ✓ Accounts 1.7 million ✓ Lending ✓ Insurance customers ✓ Payouts MERCHANT B2B | MERCHANT DIVISION¹ 120 200+ Merchants¹ ZAR 270+ billion in throughput annually¹ Micro-Merchant¹ M
Slide 44: Outlook
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Slide 45: Forward-looking statements
FY24 Q4 Results | 45 Forward-looking statements Forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties including, but not limited to, economic
Slide 46: Outlook: FY25 Q1 and FY25 guidance
FY24 Q4 Results | 46 OVERVIEW Outlook FY25 Q1 and FY25 guidance MERCHANT DIVISION Quarterly Annual FY24 Q1 Actual FY25 Q1 Outlook FY24 Actual FY25 Outlook Group Revenue¹ R2.54bn R2.5bn - R2.7bn R10.6bn R10.0bn - R11.0bn CONSUMER Group Adjusted EBITDA² DIVISION R150m R160m - R180m R691m R900m - R1.0b
Slide 47: Questions
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Slide 48: Appendix
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Slide 49: Disaggregation of revenue before intersegment eliminations for the year
FY24 Q4 Results | 49 OVERVIEW Disaggregation of revenue (ZAR’000) before intersegment eliminations for the year Total Segment Revenue¹ Segment Revenue¹ MERCHANT Merchant Consumer DIVISION 12% 12% 15% 9 320 468 10 615 100 131 841 8 318 796 1 294 632 184 158 9 445 446 1 294 632 87 350 114 026 36 288 1
Slide 50: Disaggregation of revenue before intersegment eliminations per quarter
FY24 Q4 Results | 50 OVERVIEW Disaggregation of revenue (ZAR’000) before intersegment eliminations per quarter Total Segment Revenue¹ Segment Revenue¹ MERCHANT Merchant Consumer DIVISION 11% 9% 14% 2 730 624 2 377 558 353 066 2 158 878 45 941 9 820 2 467 868 353 066 - 52 294 308 990 21 459 4 161 CON
Slide 51: We have demonstrated strong growth in revenue and profitability (USD)
FY24 Q4 Results | 51 OVERVIEW We have demonstrated strong growth in revenue and profitability (USD) Consistent execution against our strategic objectives Group revenue (ZAR) Group adjusted EBITDA 1 (ZAR) Operating income (loss)(ZAR) MERCHANT DIVISION 11% 55% Improved Connect acquisition R10.6bn $564
Slide 52: Group Revenue for Q4 2024 and FY2024 (USD)
FY24 Q4 Results | 52 OVERVIEW Group Revenue for Q4 2024 and FY2024 (USD) Consistent execution MERCHANT Group Revenue DIVISION For the quarter For the year 9% yoy 11% yoy R10 553m $564m CONSUMER R2 711m $146m DIVISION $528m R9 472m R9 320m $498m $133m R2 495m R2 378m $128m $464m R8 319m $115m R2 159m
Slide 53: Group Adjusted EBITDA for Q4 2024 and FY2024 (USD)
FY24 Q4 Results | 53 OVERVIEW Group Adjusted EBITDA for Q4 2024 and FY2024 (USD) Consistent execution MERCHANT Group Adjusted EBITDA DIVISION For the quarter For the year 30% yoy 55% yoy R 691m $37m R190m CONSUMER $10m DIVISION R624m $33m $8m R146m R153m $8m $25m R 445m $8m R154m $34m R602m (1%) yoy
Slide 54: Fundamental and Basic earnings per share (USD)
FY24 Q4 Results | 54 OVERVIEW Fundamental and Basic earnings per share (USD) MERCHANT Fundamental¹ earnings (loss) per share (ZAR) Basic (loss) per share (ZAR) DIVISION For the quarter For the year For the quarter For the year Improved Improved Improved Improved R1.18 R3.72 R2.06 R4.82 CONSUMER per
Slide 55: Group Revenue (USD)
FY24 Q4 Results | 55 OVERVIEW Group Revenue (USD) Consistent execution | Continue to deliver on both growth and profitability Group Revenue MERCHANT DIVISION 9% yoy R2 695m$144m R2 711m $146m R2 610m $138m R2 495m $133m R2 538m $136m R2 383m $136m R2 402m $134m R2 138m $125m R2 094m $135m CONSUMER D
Slide 56: Group Adjusted EBITDA (loss)
FY24 Q4 Results | 56 OVERVIEW Group Adjusted EBITDA (loss) Consistent execution | Continue to deliver on both growth and profitability Group Adjusted EBITDA (loss) MERCHANT DIVISION 30% yoy R183m $10m R190m $10m R168m $9m R146m $8m R150m $8m CONSUMER DIVISION R125m $7m R117m $7m R59m $4m R58m $3m R1
Slide 57: Use of Non-GAAP measures
FY24 Q4 Results | 57 OVERVIEW Use of Non-GAAP measures U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. We have received requests from investors
Slide 58: Reconciliation of non-GAAP measures | For the year
FY23 Q4 Results | 58 Reconciliation of non-GAAP measures | For the year PERFORMANCE Year ended 30 June FY24 FY23 FY24 FY23 HIGHLIGHTS ZAR’000 ZAR’000 $’000 $’000 Average exchange rate for conversion from ZAR to $ 18.68 17.94 18.68 17.94 Loss attributable to Lesaka – GAAP (326 070) (629 227) (17,440)
Slide 59: Reconciliation of non-GAAP measures | Quarterly
FY23 Q4 Results | 59 Reconciliation of non-GAAP measures | Quarterly PERFORMANCE FY24 Q4 FY24 Q3 FY23 Q4 FY24 Q4 FY24 Q3 FY23 Q4 HIGHLIGHTS ZAR’000 ZAR’000 ZAR’000 $’000 $’000 $’000 Average exchange rate for conversion from ZAR to $ 18.47 18.88 18.74 18.47 18.88 18.74 Loss attributable to Lesaka – G
Slide 60: Reconciliation of non-GAAP measures | For the year
FY24 Q4 Results | 60 OVERVIEW Reconciliation of non-GAAP measures | For the year MERCHANT DIVISION FY24 FY23 FY24 FY23 2024 EPS, 2023 EPS, $2024 EPS, 2023 EPS, ZAR’000 basic ZAR’000 basic ’000 basic $’000 basic Average exchange rate for conversion from ZAR to $ R17.13 R14.61 R17.13 R14.61 CONSUMER N
Slide 61: Reconciliation of non-GAAP measures | For the Quarter
FY24 Q4 Results | 61 OVERVIEW Reconciliation of non-GAAP measures | For the Quarter MERCHANT DIVISION FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 EPS, ZAR’000 EPS, basic ZAR’000 EPS, basic $’000 EPS, basic $’000 basic Average exchange rate for conversion from ZAR to $ R18.47 R18.74 R18.47 R18.74 CONSUMER Net lo
Slide 62: Once-off items | For the year and Quarterly
FY24 Q4 Results | 62 OVERVIEW Once-off items | For the year and Quarterly The table below presents the components of once-off items for the periods presented: MERCHANT DIVISION FY24 FY23 FY24 Q4 FY24 Q3 FY23 Q4 FY24 FY23 FY24 Q4 FY24 Q3 FY23 Q4 Year Quarter Year Quarter ZAR’000 ZAR’000 ZAR’000 ZAR’0
Slide 63: Outlook on stock-based compensation charges (SBC)
FY24 Q4 Results | 63 OVERVIEW Outlook on stock-based compensation charges (SBC) (ZARM) Stock-based compensation charges MERCHANT DIVISION R181m • Current level of SBC reflects higher amounts due to senior executive sign-on that will vest over the next 3-years R52m linked to performance R148m • Highe
Slide 64: Glossary
FY24 Q4 Results | 64 OVERVIEW Glossary MSME Micro small and medium enterprise SMME Small, medium, and micro enterprise MERCHANT DIVISION Kazang VAS offering Kazang is a leader in prepaid value-added services in Southern Africa. We help shop owners, traders and other entrepreneurs to i ncrease sales
Slide 65: Glossary
FY24 Q4 Results | 65 OVERVIEW Glossary MERCHANT DIVISION CONSUMER DIVISION PERFORMANCE Cash vault Kazang offering FINANCIAL OUTLOOK Partnerships enabling supply chain payments Lesaka ” means “ kraal” in Sesotho and Setswana Spaza shops and superettes APPENDIX at Merchant locations
Slide 66: Glossary
FY24 Q4 Results | 66 OVERVIEW Glossary Lesaka "kraal" Lesaka ” means “ kraal” in Sesotho and Setswana. A “kraal” protects the most valuable assets of a community, their livestock LSM Living standards measure MERCHANT DIVISION EPE EasyPay Everywhere Easy Pay Insurance EasyPay insurance (previously na
Slide 67: Business overview: Extracts from the 10-K
FY24 Q4 Results | 67 Business overview Extracts from the 10-K Appendix
Slide 68: Our operations and immediate opportunity are greater than just South Africa
FY24 Q4 Results | 68 Our operations and immediate opportunity are greater than just South Africa coverage Agg. addressable GDP Agg. addressable population $557bn 140 million South Africa’s GDP South Africa’s population $381bn 62 million Source: IMF World Economic Outlook Database, October 2023
Slide 69: Africa is poised to be the fastest growing Fintech market globally
FY24 Q4 Results | 69 Africa is poised to be the fastest growing Fintech market globally Global fintech revenue growth by region, 2021 to 2030 Growth multiple (x) 2030 Revenues ($bn) North America 4x Europe $520bn 5.5x $190bn LATAM 12.5x AFRICA APAC $125bn 13x 8.5x $65bn $600bn Source: BCG Global Fin
Slide 70: The South African merchant market alone provides significant opportunity
FY24 Q4 Results | 70 The South African merchant market alone provides significant opportunity TAM Estimated total number of micro-merchants and merchants 2.7m+ in South Africa SAM Estimated total number of immediately addressable merchants 890k+ in both spaza shops, kiosks, taverns, superettes, midi
Slide 71: The profile of the top merchant acquirers have shifted significantly
FY24 Q4 Results | 71 The profile of the top 50 merchant acquirers have shifted significantly 3% • Over the last 10 years, there has been a seismic shift in the profile of the merchant acquirer 2011 2021 • Traditional banking institutions have 52% lost significant share in the market, Global top 50 G
Slide 72: Lesaka
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