Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Net1 UEPS Technologies — Baird Business Solutions Conference 2012
24 slides from Lesaka Technologies's conference presentation, Mar 1, 2012
Slide 1: Baird Business Solutions Conference Investor Presentation
Baird Business Solutions Conference Investor Presentation March 1, 2012
Slide 2: Safe Harbor Statement
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 factors that could cau
Slide 3: Corporate Overview
nett Corporate Overview
Slide 4: Recurring Revenue with Growth Opportunities
Recurring Revenue with Growth Opportunities Over 80% of our revenue is generated by our recurring, transaction-based businesses ¾ Established Businesses (~82% of current revenue): Either are currently, or have the potential to generate double-digit growth over time Includes CPS (pension & welfar
Slide 5: Recent Developments
Recent Developments ¾ New 5-Year SASSA national Tender awarded Jan 2012 To serve ~10 million beneficiaries nationally versus ~3 million previously 5-year contract valid through March 31, 2017 Potential to cross sell additional services and penetrate new markets Expect normalized revenue of ~
Slide 6: Key Growth Opportunities
Key Growth Opportunities ¾ South Africa • Substantially increase installed user base – volume to triple in NTM • Cross-sell additional services and penetrate new market segments ¾ KSNET • Industry leading growth and profitability • Revenue synergies (value added services, MVC) and mid-market penetra
Slide 7: Strategic Overview
Cnet Strategic Overview
Slide 8: Net1's Strategic Vision
Net1’s Strategic Vision Our mission has always been, and will continue to remain the provision of a secure and affordable electronic transaction platform and financial services for the world’s unbanked and under-banked populations ¾ South Africa: Be one of the leading providers of transaction proces
Slide 9: A Growing International Footprint
A Growing International Footprint ¾ Leading provider of alternate payment systems in emerging, cash-based economies with significant unbanked or under-banked populations ¾ Over 25 million cardholders across more than10 countries ¾ Leading transaction processor in South Africa, Korea, Ghana and Iraq
Slide 10: Net1's Transaction Processing Suite
Net1’s Transaction Processing Suite Healthcare Social Grant Claims Distribution Processing Medical/ Payroll/Wage Patient Payment Management UEPS National ID Banking Mobile Microloans/ Payments/ Insurance Banking 3rd Party Prepaid Switching/ Utilities/ Processing Airtime Bill Money Payments/ Transfer
Slide 11: Business Overview
Business Overview =m 11
Slide 12: Net1 Group Structure
Net1 Group Structure % of 2Q12 Reported Business Units Revenue Segment South African Cash 50% Transaction Paymaster Based Activities Services International 31% Transaction NUETS (Iraq) Based Activities 8% Smart Card Accounts 2% Financial Services Hardware/ Net1 Net1 Prism Other/Support 8% Software U
Slide 13: Cash Paymaster Services – Pension & Welfare
Cash Paymaster Services – Pension & Welfare CPS was awarded a national five-year contract in January 2012 Current Contract New Contract Contract duration Rolling <12 months Five years Provinces served 5 out of 9 All 9 Number of beneficiaries ~3.2 million ~9.6 million Annualized contract revenue* (Es
Slide 14: The South African Platform
The South African Platform We aim to leverage our investments to establish an end-to-end leading transaction processor in South Africa Pay Points Rural POS EasyPay MediKredit Fihrst National Distribution Platform Welfare Unbanked Banked Payments Healthcare Fin’l Services 14
Slide 15: KSNET
KSNET KSNET has a leading position in a market with strong secular trends • 2nd largest processor in Korea Business Overview • Card processing represents >90% of revenues • CY11 revenue and operating income growth of 14% and 13% respectively • Direct sales force focuses on large merchants Sales Mode
Slide 16: Mobile Virtual Card
Mobile Virtual Card The safest way to pay. The simplicity of the business model requires no new hardware or any changes to the existing established relationships in the payment ecosphere Why VCpay? ¾ Security – we guarantee against fraud ¾ Simplicity – any network, any infrastructure ¾ Cost – low co
Slide 17: XeoHealth
XeoHealth XeoRulesTM is XeoHealth’s internally developed 5010 and ICD-10 enabled real-time claims adjudication engine, which significantly reduces the time and radically improves the efficiency and accuracy of healthcare claims adjudication Recent wins include: ¾ Community Behavioral Health (CBH), a
Slide 18: Financial Highlights
Financial Highlights 18
Slide 19: Business Model Characteristics
Business Model Characteristics • High recurring revenue Solid financial base • Net Debt $25 million • Strong cash flow generation • National implementation in South Africa Strong business momentum • Multiple growth opportunities • New products / geographies • Established cardholder base Significant
Slide 20: Revenue
Revenue Consolidated Revenue, in $ Millions $400 $343 $350 $300 $280 $254 $247 $250 $224 $196 $200 $192 $150 $100 $50 $0 FY06 FY07 FY08 FY09 FY10 FY11 1HFY12 SA Transaction Int'l Transaction Smart Card Financial Services Hardware/ Software 20
Slide 21: Fundamental EPS
Fundamental EPS Fundamental Earnings Per Share, in $ $2.50 $2.01 $2.00 $1.55 $1.53 $1.46 $1.50 $1.23 $1.05 $1.00 $0.87 $0.50 $0.00 FY06 FY07 FY08 FY09 FY10 FY11 1HFY12 Note: Fundamental EPS excludes amortization of intangibles, stock based compensation and one-time items. 21
Slide 22: EBITDA
EBITDA Adjusted EBITDA, in $ Millions $140 $127 $121 $117 $120 $112 $108 $100 $91 $80 $65 $60 $40 $20 $0 FY06 FY07 FY08 FY09 FY10 FY11 1HFY12 Note: Adjusted EBITDA excludes one-time items. 22
Slide 23: Financial Summary - Segments
Financial Summary - Segments Transaction Based Activities are at the core of what we do ($ Millions) FY07 FY08 FY09 FY10 FY11 1H12 SA Transaction Based Activities Starting in FY11, we Revenue $ 139.0 $ 153.4 $ 148.4 $ 191.4 $ 188.6 $ 96.3 provided SASSA with a Adjusted EBIT 80.1 86.0 85.4 110.2 80.3
Slide 24: Contact
Contact: Dhruv Chopra Vice President Investor Relations +1-212-626-6675 dchopra@net1.com
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