Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Investor Presentation (October 2023)
31 slides from Lesaka Technologies's investor presentation, Oct 12, 2023
Slide 1: Unlock the Stock
Investor presentation | 1 Unlock the Stock 12 October 2023
Slide 2: Disclaimer
Investor presentation | 2 Disclaimer Guidance noted in this presentation is as of September 12, 2023. Nothing herein should be construed as reaffirming, disaffirming or updating such guidance. Forecasted figures are based on information available at the time that this forecast was created and/or man
Slide 3: Lesaka at a glance
Investor presentation | 3 Lesaka at a glance LESAKA TECHNOLOGIES INC. Exchange / ticker NASDAQ : LSAK; JSE : LSK Market cap¹ R4.7bn Average trading volume (3-month) ~30 000 shares Revenue (12 months ended 30 June 2023) R9.5bn 1. Bloomberg: October 5, 2023
Slide 4: Company Overview
Company Company Overview Overview April 2023
Slide 5: Southern Africa's leading dual-sided FinTech ecosystem
Investor presentation | 5 OVERVIEW COMPANY Southern Africa’s leading dual-sided FinTech ecosystem Business highlights Dual-sided merchant and consumer ecosystem powered by proprietary technology OPPORTUNITY OUR MARKET and high-touch distribution of solutions for financial inclusion Addressing a larg
Slide 6: Enabling merchants to compete and improving lives of grant beneficiaries
Investor presentation | 6 Improving the lives of South Africa’s OVERVIEW Enabling merchants COMPANY to compete and grow grant beneficiaries By providing Innovative financial technology and value-creating solutions OPPORTUNITY OUR MARKET THE LESAKA PLATFORM PERFORMANCE FINANCIAL APPENDIX Our Values E
Slide 7: A unique dual-sided merchant and consumer FinTech platform in South Africa
Investor presentation | 7 OVERVIEW COMPANY A unique dual-sided merchant and consumer FinTech platform in South Africa Competitors in parts of our ecosystem | None with a comprehensive product portfolio covering both cash and digital, in formal & informal markets Other listed and leading Fintech ecos
Slide 8: Our Market Opportunity
Our Market Opportunity
Slide 9: Key sources of friction for our customers
Investor presentation | 9 OVERVIEW COMPANY Key sources of friction for our customers... Financial Services providers in South Africa face significant barriers to inclusion and digitization in the informal market OPPORTUNITY OUR MARKET THE LESAKA PLATFORM Lack High Lack Low levels Lower smartphone of
Slide 10: Impact Merchants
Investor presentation | 10 OVERVIEW COMPANY Impact Merchants... Many have no access to growth capital or digital payments OPPORTUNITY OUR MARKET The risks and costs of Significant opportunity to help businesses grow managing cash remain high: Lack of distribution High set-up costs 2.1m 1.4m THE
Slide 11: ...and Consumers
Investor presentation | 11 OVERVIEW COMPANY ...and Consumers OPPORTUNITY OUR MARKET Many South African consumers Significant opportunity to increase financial inclusion have very poor access to financial services: Lack of access points 26m 12m THE LESAKA South African social grant PLATFORM Exces
Slide 12: The Lesaka Platform
The Lesaka Platform
Slide 13: The Lesaka platform offers growth and broader reach
Investor presentation | 13 OVERVIEW COMPANY The Lesaka platform offers growth and broader reach OPPORTUNITY OUR MARKET B2B | + 82 000 Merchants B2C | + 1.3m Consumers Formal market Informal market VAS VAS Banking THE LESAKA PLATFORM VAS and bill payments Supplier payments Lending Digitalization of c
Slide 14: Platform offers growth in an underpenetrated market
OVERVIEW COMPANY Our platform offers growth and broader reach in an underpenetrated market Attractive Total Addressable Market (TAM) and Serviceable Addressable Market (SAM) Merchants Consumers OPPORTUNITY OUR MARKET LSM1 1 to 6 in South Africa FORMAL INFORMAL over TAM TAM 82 500 TAM ~26m +700 000 >
Slide 15: Merchant MSME revenue drivers: VAS, supplier payments and card acquiring
Investor presentation | 15 OVERVIEW COMPANY Merchant MSME revenue drivers | VAS, supplier payments and card acquiring Holistic offering and innovative solutions to the formal and informal sectors Value-Added Services & supplier payments Card Acquiring OPPORTUNITY OUR MARKET Devices deployed Devices
Slide 16: Merchant MSME revenue drivers: Cash and Merchant Credit
Investor presentation | 16 OVERVIEW COMPANY Merchant MSME revenue drivers | Cash and Merchant Credit Holistic offering and innovative solutions to the formal and informal sectors Digitalization of Cash Merchant Credit OPPORTUNITY OUR MARKET Devices deployed ~3 900 ~4 390 ▲8% (yoy) ~13 000 ~2 400 ~1
Slide 17: Consumer: straightforward and cost-effective financial services
Investor presentation | 17 OVERVIEW COMPANY Consumer | Offering straight forward and cost-effective Financial Services BANKING SHORT-TERM LOANS PERSONAL INSURANCE OPPORTUNITY OUR MARKET ~1.3m R415m ~335 000 THE LESAKA Loan book PLATFORM Active EPE customers Active insurance policies ▲10% YoY ▲19% Yo
Slide 18: Successful turnaround completed with third consecutive quarter of profitability
Investor presentation | 18 OVERVIEW COMPANY Successful turnaround completed with third consecutive quarter of profitability¹ Clear strategy for growth in client base and ARPU2 Consumer Segment Revenue Consumer Segment Adjusted EBITDA (Loss) Delivery against (Rm) (Rm) strategic focus areas OPPORTUNIT
Slide 19: Financial Performance
Financial Performance
Slide 20: FY23 has been transformational for Lesaka
Investor presentation | 20 OVERVIEW COMPANY FY23 has been transformational for Lesaka Execution and financial turnaround evident 1 • Successful integration • Secular growth trends remain in-tact OPPORTUNITY OUR MARKET • Growth driven by Kazang and Connect businesses - Rapid roll out and adoption of
Slide 21: Segmental EBITDA analysis for the year and quarter
Investor presentation | 21 OVERVIEW COMPANY Segmental EBITDA analysis for the year and quarter For the year ended 30 June For the quarter ended 30 June ZAR’000 FY23 FY22 % Growth FY23 Q4 FY22 Q4 % Growth Average exchange rate for conversion from ZAR to $ 17.94 15.20 18% R18.74 R15.56 20% Revenue OPP
Slide 22: Operating loss narrows
Investor presentation | 22 PERFORMANCE HIGHLIGHTS Operating loss narrows Unpacking components of operating loss Operating income (loss) MERCHANT DIVISION CONSUMER DIVISION (R269m) (R67m) (R67m) PERFORMANCE FINANCIAL (R126m) (R33m) (R58m) (R132m) (R275m) (R58m) (R158m) OUTLOOK (R611m) (R124m) FY22 FY
Slide 23: Consistent quarterly growth carried through FY23
Investor presentation | 23 OVERVIEW COMPANY Consistent quarterly growth carried through FY23 Execution of successful turnaround over the past 8 quarters Group Revenue Group Adjusted EBITDA (loss) OPPORTUNITY OUR MARKET R158m R2 468m R137m R2 383m R2 402m R130m R78m R2 138m R60m R72m R2 094m R154m R1
Slide 24: Generating positive cash flow at an operational level
Investor presentation | 24 OVERVIEW COMPANY Generating positive cash flow at an operational level Net cash provided by operating activities Summary Group cash flow (Rm) FY23 Q4 FY23 Q3 FY23 Q2 Cash generated from business operations¹ 197 141 147 OPPORTUNITY OUR MARKET Interest paid (59) (57) (52) Ne
Slide 25: Outlook
Investor presentation | 25 OVERVIEW COMPANY Outlook FY24 and medium-term financial objectives OPPORTUNITY Quarterly Annual OUR MARKET FY23 Q1 Actual FY24 Q1 Outlook FY23 Actual FY24 Outlook Group Revenue R2.1bn R2.50bn - R2.55bn R9.4bn R10.7bn - R11.7bn Group Adjusted EBITDA¹ R72m R160m - R165m R498
Slide 26: Questions
Investor presentation | 26 Questions
Slide 27: Appendix
Vi Lesaka o* i 2 AY
Slide 28: Use of Non-GAAP measures
Investor presentation | 28 OVERVIEW COMPANY 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
Slide 29: Reconciliation of non-GAAP measures | Quarterly
Investor presentation | 29 OVERVIEW COMPANY Reconciliation of non-GAAP measures | Quarterly FY23 Q4 FY23 Q3 FY22 Q4 FY23 Q4 FY23 Q3 FY22 Q4 ZAR’000 ZAR’000 ZAR’000 $’000 $’000 $’000 Average exchange rate for conversion from ZAR to $ 18.74 17.93 15.56 18.74 17.93 15.56 OPPORTUNITY OUR MARKET Loss att
Slide 30: Reconciliation of non-GAAP measures | Year to date
Investor presentation | 30 OVERVIEW COMPANY Reconciliation of non-GAAP measures | Year to date Year ended 30 June FY23 FY22 FY23 FY22 ZAR’000 ZAR’000 $’000 $’000 Average exchange rate for conversion from ZAR to $ 17.94 15.20 17.94 15.20 OPPORTUNITY OUR MARKET Loss attributable to Lesaka – GAAP (629
Slide 31: End
Investor presentation | 31 End
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