Slide 1: H1 FY26 Results Presentation
H1 FY26 Results Presentation For the six months ended 30 September 2 December 2025
Slide 2: Outline
Outline 1 Introduction & highlights page 3 2 Payments page 12 3 Software page 22 4 Financial performance page 33 5 Prospects page 45 6 Q&A page 48
Slide 3: Introduction
Introduction Payments Software International Annual revenue: Annual revenue: Annual revenue: R689 m R549 m R12.5 m 3 Halo is reported as part of Payments
Slide 4: Araxi's investment case
Introduction Araxi’s investment case An extremely strong foundation on which to grow further – organically and by acquisition • Strong secular growth trends • Deliberate focus on and investment in the • Large market opportunity – domestic and future international • Cash generative, resilient busines
Slide 5: Recent events & highlights
Introduction • Name changed to Araxi • Execution of Payments strategy advancing well - Strong pipeline, particularly for lower-tier market Recent events • Software restructuring, cost-saving initiatives & highlights progressing satisfactorily with robust sales recovery A busy period in a tough marke
Slide 6: Strong performance in sluggish economy
Introduction Strong performance in sluggish economy • Growing demand for Araxi’s products and services • Excellent performance from the Payments division, HEPS up 1.8% DPS stable with Revenue up 23.2% and EBITDA up 33.1% • Significant terminal orders received in H1’26 7.68 7.82 4.25 4.50 4.50 Cents
Slide 7: Changes to accounting policies in prior year
Introduction Changes to accounting policies in prior year Auditors rotated after serving 10 years prompting policy reviews, adjustments and restatements, first disclosed in FY'25, now applied to H1'25 as well . . . Matter 1: Accounting Matter 2: Appraisal Matter 3: Recognition of Matter 4: Software
Slide 8: Timing of revenue recognition – Matter 7
Introduction Context • A multi-year software licence to a major banking institution was previously treated as revenue earned over time and proportionally recognised in the prior set of interim results Timing of revenue • This was restated to be accounted for as a licence at a point in time. This tre
Slide 9: Normalised performance
Introduction Introduction Normalised Adjusted EPS and HEPS up 59% and 58%, respectively September September % increase Normalised performance# 2024 • H1'25 enhanced by multiyear 2025 restated* /(decrease) software licence Reported Revenue (R’million) 652.9 638.0 • H1'26 prejudiced by absence of Soft
Slide 10: Liability re appraisal remedy – Matter 2
Introduction Context • In 2019, one shareholder exercised appraisal rights related to specific repurchase transaction @ 80 cents per share • AXX contested appraisal remedy, but Court concluded AXX is required to purchase shares at then Fair Market Liability re Value, to be determined by court-appoin
Slide 11: Profitability kept pace with very strong prior year performance
Profitability kept pace with very strong prior year Introduction performance amplified by restatements Revenue up 2.3% EBITDA up 0.4% Restatements increased prior 638.0 652.9 149.5 150.1 year revenue by 4.3% and EBITDA by 31.4%. Current year R million R million profitability nevertheless kept pace a
Slide 12: Payments
Payments
Slide 13: Digital payments growth
Payments Digital payments growth South Africa: Card Payments Value (ZAR trillion), 2020-29f Average frequency of payments per card 4 40% 118.1 Card payments value (ZAR trillion) 3 30% Growth rate (%) 2 20% 51.0 1 10% 24.2 10.9 5.3 0 0% 2020 2021 2022 2023 2024e 2025f 2026f 2027f 2028f 2029f Kenya Mo
Slide 14: Growth strategy
Payments • Continue to take market share in established segments • Grow SA client base and market for devices • Refresh industry’s legacy terminal estates – 2G and 3G devices Growth strategy • Follow clients across Africa (hardware & software) • Introduce new payment services, products and Organic g
Slide 15: MicroPOS
Payments MicroPOS Ultralight “Micro-POS” solution for smaller high-volume merchants, combining a calculator, POS system and payment into one sleek merchant checkout solution. • Load stock of up to 9 categories with 9 SKUs per category • Stock alerts • Integrated payment app • Calculator Low Stock Al
Slide 16: Global expectations for Halo Dot
Payments Global expectations Juniper Research, 27 May 2025 for Halo Dot 5-year SoftPOS Market “This swift progression will be driven by Growth – 2025 to 2030 2 150% SoftPOS’s ability to democratise access to digital payments for micro and small businesses as they transition away from Total SoftPOS t
Slide 17: Halo Dot
Products Payments Halo Dot Contactless Payment Acceptance Transforming any NFC-enabled mobile device into a secure point of sale terminal, empowering merchants of all sizes to accept EMV compliant payments New customers, integrations and partnerships from 1 April 2025 Hosting Methods Customers acros
Slide 18: Tap on own device pilot
Payments Pilot in the gaming industry to be announced in Q1 2026, Tap on own device in partnership with card schemes and a local acquiring bank Tap to More… Completing a transaction on your personal mobile device Converting high-risk Card-Not-Present Enabling fraud liability shift Reimagining the ch
Slide 19: Expanding payment acceptance across operating systems
Expanding payment acceptance Payments across operating systems With the addition of Apple (Tap to Pay on iPhone) Halo Dot is a recognised Apple-Approved Android (SoftPOS/MPoC) Gateway Service Provider (GSP) Full PCI MPoC certified SoftPOS capabilities across Android environments A GSP enables Paymen
Slide 20: NightsBridge use case
Software NightsBridge Challenge NightsBridge, a leading property management and booking platform, use case wanted to offer accommodation providers a simpler way to accept card payments directly within their system. Previously, hosts depended on external POS devices for in-person payments - adding co
Slide 21: LayUp driving real results
Payments Driving real results LayUp is growing well, with tangible traction Introducing new products, including Save NOW, . . . Repeat usage, large volume orders, and merchant demand are driving scale . . . Buy LATER 3 000+ 91%+ 1 in 3 R780k 470% up 88% Active Completion Customers Biggest Instore te
Slide 22: Software
Software
Slide 23: Reimagined software
Software • Software Reimagined software Transforming businesses through innovative technologies, enabling clients to thrive in the global marketplace 23
Slide 24: Action plan for improved performance – internal
Software Action plan for improved performance What we have done and are doing Internal efforts to manage cost and resources • Refined roles & responsibilities of Leadership Team • Initiated a deliberate headcount reduction, resulting in a voluntary separation of 34 personnel plus reduced number of c
Slide 25: Action plan for improved performance – external
Software Action plan for improved performance What we have done and are doing External efforts to drive revenue • Refocused sales effort to improve Pipeline Quality, Depth and Conversion Ratios • Enhanced commitment to strategic partners • Focus on specialised, high-impact and long-term project oppo
Slide 26: Growth strategy
Software • Leverage Partnerships and Relationships – Assist new and existing customers to grow their businesses and set them up for success • Grow licence and annuity revenue – Increase recurring revenue from proprietary software solutions (intellectual property assets) and managed Growth strategy s
Slide 27: Unlocking value through AI
Software Unlocking value through AI Transforming Enterprises & Software Solutions... AI is a force multiplier AI for Enterprises: Driving Operational AI for Solution Providers: Differentiation & Excellence Scale Productivity Gains - Automates repetitive tasks, freeing up human Enhanced Product Offer
Slide 28: AI presents a compelling opportunity
Software AI has AI presents a moved from compelling experimentation opportunity to a focus on For enterprises and for service providers unlocking business value 28
Slide 29: Capitec: real-time fraud detection
Case study Intelligent data Capitec faced rapidly increasing digital fraud threats, driven by sophisticated social-engineering scams. Traditional rule-based fraud systems struggled to keep pace with constantly evolving fraud patterns, creating risks of financial loss, customer vulnerability, slow re
Slide 30: Agentic AI for Home-loans
Case study Challenge A bank wanted to explore how Agentic AI could improve its services. The goal was to show that this new technology could work, deliver real benefits, and make banking easier and more Banking & financial personalised for customers, starting with first-time homebuyers. To do this,
Slide 31: Credeq: modern data platform
Case study Solution Credeq Together with the Lombard and Credeq team, Synthesis built a modern cloud-based data platform on Google Cloud to help Credeq manage and use their data more easily. The platform is able to gather information from A modern data platform for global growth different sources an
Slide 32: AssetPool minority investment
Software AssetPool minority investment A cloud-native B2B SaaS platform focused on smart inspection, asset management, tracking, maintenance, compliance and verification 600 2025 Progress: 500 505 • New features deployed: 21 Inspections (‘000) 400 • New Enterprise customers: 68 383 349 • YOY MRR* gr
Slide 33: Financial performance
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Slide 34: Continued strong growth from Payments
Financial performance Continued strong growth from Payments • Significant terminal orders R million 450 387.2 • Growing interest from clients in lower-tier market 400 segments – affordable, feature rich devices 314.3 350 introduced specifically for this market 265.3 300 250 • Expenses growth below i
Slide 35: Pleasing progress on key metrics
Financial performance Pleasing progress on key metrics Total terminal estate up 15.0% y-o-y Payments EBITDA margin improved by 350bps 424 446 44.1 47.6 Terminal sales up 23.1% 44.3 357 y-o-y, mainly outright sales, 328 277 with finance lease rollout Percent slower ‘000s 217 185 140 92 Terminal licen
Slide 36: Payments revenue composition
Financial performance Payments revenue composition Annuity/recurring income comprising 55% of total Payments revenue Sale of Terminals up 23% Terminal Rental Income 200 flat 35 New terminal sales continued it’s 150 30 growth trajectory, while rental R million 100 25 contract declined marginally as R
Slide 37: Software remedial initiatives taking effect
Financial performance Software remedial initiatives taking effect Revenue EBITDA • Remedial plans implemented, expecting more 321.6 40.2 39.6 than R35 million in annual run-rate cost savings 295.2 288.4 • Sales pipeline strengthened noticeably at period 256.7 end - multi-year contracted agreements w
Slide 38: Software comparative performance suppressed by restatement
Financial performance Software comparative performance suppressed by prior year restatement Services and consultancy fees Licence and subscription Security hardware and 3rd party down 18.0% fees down 47.4% licences up 44.2% 46.6 218.0 77.8 206.6 37.2 R million 178.7 R million R million 25.8 40.9 35.
Slide 39: Group condensed statement of comprehensive income
Financial performance (1) Higher terminal sales, terminal licence Group condensed statement of fees, offsetting lower software revenue comprehensive income (2) Contraction due to restatement of licence and subscription fees (3) Intense focus on cost control and cost (R million) 30 September 30 Septe
Slide 40: Condensed statement of comprehensive income (continued)
Financial performance Group condensed statement of The 30 September 2024 results were restated as presented already. The comprehensive income (continued) impact of the restatements was as follows: EPS impact % increase % increase / 30 Sep / Accounting for Dariel Earn-out – 30 Sep 30 Sep 2024 (R mill
Slide 41: Condensed group statement of financial position
Financial performance Condensed group statement of financial position 30 September 30 September (R million) 2025 2024* (1) Decline in PPE as a result of ASSETS terminal depreciation, and a stable operating rental book (1) Property, plant and equipment 61.3 77.0 Goodwill 840.3 840.3 (2) Cash and cash
Slide 42: Cash flow (key features)
Financial performance Cash flow (key features) 30 (1) Increase in finance income due to a 30 September (R million) September major finance lease contract, not fully 2025 2024* rolled out yet in H1’24 Profit before tax 133.4 130.6 Cash generated from operations (1) Net finance income received (11.2)
Slide 43: Sustainable cash flow supports strong dividend practice
Financial performance Sustainable cash flow from operations support strong dividend practice Dividends Cash Cover (cents per share) R million Times 360 3.5 14 318.8 3.1 320 12 2.9 2.8 3 2.7 280 2.5 10 212.7 2.4 206.1 207.9 204.3 240 200.9 2.1 183.1 2 8 7.50 166.3 200 157.2 Cents 1.7 5.75 131.0 160 1
Slide 44: Treasury shares outlook
Financial performance Treasury shares outlook Likely some will be cancelled Cumulative held shares, purchased in Open Market ( as of 31 Mar ’25) 63.8 m CAET Shares – IFRS 10 consolidation (deemed treasury) 75.0 m Dissenting Shareholder Shares – issued shares to be cancelled 18.1 m Additional shares
Slide 45: Prospects
Prospects
Slide 46: General prospects
Prospects General prospects Group is well capitalised, with the management skills, experience, motivation and technology (products and solutions) to deliver on our growth strategy… Strong pipelines across divisions and significant orders already placed for Economic climate is H2’26 impacting our cli
Slide 47: Cautionary announcement
• Previously articulated acquisition criteria • Scale business, with product market fit Cautionary • • Differentiated offering Strong management announcement • Complementary to Araxi portfolio • Enterprise focused Growth by acquisition • Opportunity for growth and international expansion Shareholder
Slide 48: Q&A Thank You
Q&A Thank You
Slide 49: Disclaimer
Disclaimer This presentation contains forward-looking statements that relate to Araxi’s future operations and performance. Such statements are not intended to be interpreted as guarantees of future performance, achievements, financial or other results. The statements rely on assumptions and future c
Slide 50: Annexure
Annexure
Slide 51: Dariel related earn-out – Matter 1
Introduction Context • Dariel’s earn-out was variable – actual EBITDA delivered was to be measured against EBITDA warranted Dariel related • The contingent acquisition consideration was reflected as equity and should have been measured through SOCI earn-out • Dariel achieved only 55% of the EBITDA w
Slide 52: Recognition of capital gains tax – Matter 3
Introduction Context • CTA used Treasury Shares to satisfy certain obligations o Under its Share Option Plan and the Recognition of Conditional Share Plan capital gains tax o Relating to the share obligations in connection with acquisitions (eg Dariel and Responsive) – Matter 3 • The issuance of the
Slide 53: Revenue agent vs principal – Matter 4
Introduction Context • All third-party contracts represented by Synthesis were reviewed Revenue agent • The conclusion was that three contractual relationships constitute an Agent and not Principal vs principal • No other contracts were recharacterised – Matter 4 • Software Revenue and Cost of Sales
Slide 54: Investment in associate companies – Matter 5
Introduction Context • CTA funded LayUp and AssetPool with Convertible Debt Investment in • Previously accounted for at amortised cost, with no recognition of the conversion option value associate companies • Loan revalued to market – Matter 5 • Conversion option separately valued using Monte Carlo
Slide 55: Consolidation of CAET – Matter 6
Introduction Context • CAET holds 75 million CTA shares acquired at initial listing • CAET funded the purchase with bank loan (preference shares) guaranteed by CTA Founders in personal capacity Consolidation • CTA has NO financial exposure to CAET (position of CAET • unchanged) Revised interpretatio