Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Avior Corporate Summit June 2023
24 slides from Lesaka Technologies's conference presentation, June 2023
Slide 1: Avior Corporate Summit June 2023
Avior Corporate Summit June 2023
Slide 2: Disclaimer
Investor presentation | 2 Disclaimer Guidance noted in this presentation is as of May 9, 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 management
Slide 3: Lesaka at a glance
Investor presentation | 3 Lesaka at a glance LESAKA TECHNOLOGIES INC. Exchange / ticker NASDAQ / LSAK; JSE LSK Market cap¹ $236m Enterprise value2 $398m Average trading volume (3-month) ~58 000 shares Revenue (last 12 months)3 $519m 1. Closing price Bloomberg: June 9, 2023 2. Source: Bloomberg June
Slide 4: Southern Africa's leading dual-sided FinTech ecosystem
Investor presentation | 4 Southern Africa’s leading dual-sided FinTech ecosystem Business highlights Dual-sided merchant and consumer ecosystem powered by proprietary technology and high-touch distribution of solutions for financial inclusion Addressing a large, and mostly untapped, market opportuni
Slide 5: Company Overview
Company Company Overview Overview Section 1 April 2023
Slide 6: Enabling small merchants and improving lives of grant beneficiaries
Investor presentation | 6 OVERVIEW COMPANY Enabling small merchants Improving the lives of South Africa’s grant to compete and grow beneficiaries By providing Innovative financial technology and value-creating solutions OPPORTUNITY OUR MARKET THE LESAKA PLATFORM PERFORMANCE FINANCIAL APPENDIX Our Va
Slide 7: A unique dual-sided FinTech platform in South Africa
Investor presentation | 7 OVERVIEW COMPANY A unique dual-sided FinTech platform in South Africa Other listed and leading Fintech ecosystems around the world OPPORTUNITY OUR MARKET THE LESAKA PLATFORM opportunity 3rd $415bn 6th 59m PERFORMANCE FINANCIAL Largest African economy GDP (2021) Most populou
Slide 8: Our Market Opportunity
Our Market Opportunity Section 2
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 t
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 PLATFORM Excessive charges South African
Slide 12: The Lesaka Platform
The Lesaka Platform Section 3
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 | + 78 000 Merchants B2C | + 1.3m Consumers Formal market Informal market VAS VAS Banking THE LESAKA PLATFORM Bill and supplier payments Bill and supplier payments Lending Digit
Slide 14: Our platform offers growth and broader reach in an underpenetrated market
Investor presentation | 14 OVERVIEW COMPANY Our platform offers growth and broader reach in an underpenetrated market A FinTech platform focused on cash and digitization delivering financial inclusion to merchants and consumers OPPORTUNITY OUR MARKET Merchants Consumers TAM over TAM 80 000 26m: LSM¹
Slide 15: Merchant: Building a leading position in a growing and underserved market
Investor presentation | 15 OVERVIEW COMPANY Merchant | Building a leading position in a growing and underserved market OPPORTUNITY OUR MARKET Digitization of cash Value-Added Services Card acquiring Merchant credit ~4 370 ~71 800 ~42 000 R280m cash vaults devices deployed devices deployed Merchant c
Slide 16: Merchant revenue drivers
Investor presentation | 16 OVERVIEW COMPANY Merchant MSME Revenue drivers Digitization of Cash Value-Added Services Card Acquiring Merchant Credit Settlements Throughput Throughput OPPORTUNITY OUR MARKET 2% yoy 28% yoy 93% yoy ~4 200 ~2 900 ~1 900 ~770 THE LESAKA 40% yoy PLATFORM PERFORMANCE FINANCI
Slide 17: Consumer: Offering 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 R397m ~309 000 THE LESAKA PLATFORM Active EPE Customers Loan book Active insurance policies ▲16% YoY ▲11% Yo
Slide 18: Financial Performance
Financial Performance Section 4
Slide 19: Group financial performance overview FY23 Q3
Investor presentation | 19 OVERVIEW COMPANY Group financial performance overview FY23 Q3 Group Revenue Group Adjusted EBITDA (Loss) Cash generated from/(utilized in) business operations¹ OPPORTUNITY OUR MARKET R2 383m R2 402m $134.0m R137m $7.6m R130m R147m R2 138m R141m R72m THE LESAKA PLATFORM R14
Slide 20: Outlook for FY23 at a Revenue and Group Adjusted EBITDA level
Investor presentation | 20 OVERVIEW COMPANY Outlook for FY23 at a Revenue and Group Adjusted EBITDA level Guidance for FY24 to be provided in September 2023 OPPORTUNITY OUR MARKET FY23 Outlook (R) FY23 Outlook ($) 2 Revenue R8.7bn-R9.3bn $483m - $516m Merchant Segment Adjusted EBITDA¹ R580m-R595m $3
Slide 21: Appendix
Lesaka Appendix Section 5
Slide 22: Defined terms
Investor presentation | 22 OVERVIEW COMPANY Defined terms OPPORTUNITY Segment We evaluate segment performance based on segment earnings before interest, tax, depreciation and amortization (“EBITDA”), adj usted for items mentioned in the next sentence. OUR MARKET Adjusted EBITDA We do not allocate on
Slide 23: Calculation of Net Debt to Group Adjusted EBITDA ratio
Investor presentation | 23 OVERVIEW COMPANY Calculation of Net Debt to Group Adjusted EBITDA ratio 3.5x Net debt to EBITDA ratio 4 (FY23 Q2: 3.6x) OPPORTUNITY OUR MARKET Net debt position (Rm) Mar 2023 Dec 2022 Debt1 (2 983) (2 612) Cash on hand 2 879 722 THE LESAKA PLATFORM Net debt position (2 104
Slide 24: Reconciliation of non-GAAP measures
Investor presentation | 24 OVERVIEW COMPANY Reconciliation of non-GAAP measures FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 Q3 - ended 31 March ZAR’000 EPS, basic ZAR’000 EPS, basic $’000 EPS, basic $’000 EPS, basic Average exchange rate for conversion from ZAR to $ 17.93 15.61 17.93 15.61 Fundamental net loss
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