Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Corporate Update (July 2022)
31 slides from Lesaka Technologies's corporate update, Jul 7, 2022
Slide 1: Connect Group February 2022 Results and Group Combined Statements
Exhibit 98.2 LESQAKQA ae Connect Group February 2022 Results and Group Combined Statements — _ A | Laer sen ee |
Slide 2: Safe Harbor Statement
LeESaKQ Connect Group Acquisition | 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 identif
Slide 3: Lesaka
Lesaka
Slide 4: Our Mission
Lesaka Connect Group Acquisition | Our Mission We Strive to Bring Financial Inclusion to Consumers and Merchants in Southern Africa LESQKQ ul Building a World Class Fintech Platform \ Re-inventing How Merchants Grow, Revolutionizing How a Large Manage, and Digitize Their Consumer Base Accesses, Busi
Slide 5: Delivering a Dual-Sided Digital Financial Ecosystem in Southern Africa
Lesaka Connect Group Acquisition | 5 Delivering a Dual-Sided Digital Financial Ecosystem in Southern Africa Digitization of Cash Banking Growth Capital Card Acquiring Bill and Supplier Payments MERCHANTS CONSUMERS — Consumer Credit Value Added Services (VAS) +52,000 © +1.1 million Financial Switch P
Slide 6: The Lesaka platform offers growth and broader reach
Lesaka Connect Group Acquistion | 6 The Lesaka platform offers growth and broader reach Merchant —a a Consumer EM TOUCH, Po TAM /, TAM > 26m: LSM" 1-6 oe 700k Formal 1.4m Informal MARKET SHARE Retailer pay points a" . <1% MARKET ‘a @& ams ‘SHARE - Sumo “ +6500 +45 500 has Ge coe Formal Informal EPE
Slide 7: Led by an experienced senior leadership team with proven execution ability
Lesaka Connect Group Acquisition | 7 Led by an experienced senior leadership team with proven execution ability A, Chris Meyer Naeem Kola Lincoln Mali Steven Heilbron Denzil Landie Basie Kok Karabo Mothibi Group Group ceo Connect Group Group Chief Technology Head: CEO CFO Southern Africa CEO Head of
Slide 8: EESQKQ
EESQKQ
Slide 9: Strategic pillars driving successful growth
Lesaka Connect Group strategic pillars driving successful growth Retaining and winning new merchants eal Product innovation vA Service the underserved merchant Disrupt and innovate through financial technology Building world- class teams in a high performing environment Continue to grow organically
Slide 10: Strategy in action delivering double-digit growth in revenue and EBITDA
Lesaka Connect Group Acquisition | 10 Strategy in action delivering double-digit growth in revenue and EBITDA F Strategy Execution on strategy Impact on finan 4 H ' 8 ‘ H F 4 : ' S Service the underserved i H 2022 Growth @ S | seca meunsonenes | i H 24% = H Hl Net Revenue**** _ 3 ' ' 3 Disrupt and i
Slide 11: Offering innovative solutions to the formal and informal sectors
Lesaka Connect Group Acquisition | 11 Offering innovative solutions to the formal and informal sectors Informal Sector Innovating for MSME’s Formal Sector (Jess than R150,000 pm to, : (higher to, urban, access to ruralltownship/spazaltrader) In Southam Altica formal bank relationships) ZAN KATES Dig
Slide 12: Slide 12
Slide 13: Connect Group: Key Revenue Drivers and year CAGRs
LesaKa i neat 08 Connect Group: Key Revenue Drivers* and 3 year CAGRs Kazang VAS & Bill payment a a Card Connect & Kazang Pay! —e—Valueprocessed (Ron) = —e—Devices — eCard value processed (Ron) 8 Active terminals 4g 34857 18968 ee 21513 15382 Saat s 4 F017, Fv2018.—=—=FY2019«—=«FY2020«==FY021.«—FY20
Slide 14: Revenue Analysis - Reconciliation of Gross and Net Revenue
LesaKa Connect roupAcauiston | 18 Revenue Analysis — Reconciliation of Gross and Net Revenue (R million) 5 152 Ra 235, (R3 845) (n3 182) 24% yoy ni 052 Revenue Face value Net Revenue Face value Net perAFS ofairtime — Revenue perAFS of airtime Revenue 2021 2022 Note 1 : Face value of airtime included
Slide 15: Net Revenue Breakdown by Major Product Group
LesaKa ht i hen 48 Net Revenue Breakdown by Major Product Group (millions) Kazang (VAS & Bill payment) Card Connect & Kazang Pay | 447 : S49 $313 28% yoy 31% ws R518 R73 2021 2022 2021 2022 Cash Connect Capital Connect. . $409 70% yoy ss09 i} ues a 2021 2022 2021 2022 Notet: Please refer to Annexure
Slide 16: Gross Margins and EBITDA for year ended February 2022
Lesaka Connect Group Acquisition | 16 Gross Margins and EBITDA for year ended 28 February 2021 and 2022 (millions) 8.6% Gross Profit % 39.56 $38.3 ee $25.7 R375 warranted $18.4 26% yoy Gross Profit EBITDA 2021 2022 * Refer Annexure B ** Refer Annexure C Average exchange rates used for conversion to
Slide 17: High Cash Conversion Ratio with Re-investment into Growth
LesaKa Connect roupAcsuistion | 17 High Cash Conversion Ratio with Re-investment into Growth - 28 February 2022 NOWONOOMAN! Pad [| Invested inGrowth ~>s, ' so yus LNNOD sins a1NaNo> EBITDA Working Capital Growth Capex Maintenance Capex Free Cash Flow Note 1 : Free cash flow is calculated before taxe
Slide 18: Combined Accounts
‘ _ fesaKa, < a wa Till. Combined Accounts
Slide 19: Basis for preparation of combined accounts for 12 months to 28 February 2022
Lesaka Connect Group Acquisition | 19 Basis for preparation of combined accounts for 12 months to 28 February 2022 \ Lesaka ss: @ connect : Cc @ : Lesaka Adj y Connect Group : co Lesaka combined * i] (Pre-Connect) offs 12 months ended = accounts 12 months ended 28 Feb 2022 12 months ended 28 Feb 202
Slide 20: Combined accounts: Headline Items for 12 months to February 2022 on a US GAAP basis
Lesaka Connect Group Acquisition | 29 Combined accounts: Headline Items for 12 months to 28 February 2022 on a US GAAP basis 4 Revenue Pak sa OPEX “EBITDA \ Lesaka 134 365 40 670 (79 358) (38 688) Connect 346 719 44 096 (18 954) 25 142 Pro forma adjustments Note2 (1 783) (1 783) Combined Results 481
Slide 21: Normalised EBITDA for 12 months to 28 February 2022
LesaKa Connect roupAcauiston | 24 Normalised EBITDA ($'000) for 12 months to 28 February 2022 Normalised Lesaka Normalised Connect Normalised Combined Normalised EBITDA EBITDA EBITDA EBITDA Adjustments (Note 1) Combined i ' Excludes the annualised benefits of cost 4 q Hl ' saving initiatives that ha
Slide 22: Proforma net debt position after Connect Group acquisition
Lesaka Connect Group Acquisition | 22 Proforma net debt position after Connect Group acquisition USD (millions) Company cash on hand* Connect Group Net debt on hand Net cash Acquisition funding Lesaka debt raised Connect debt raised Less cash utilised Lesaka proforma net debt ‘All amounts translated
Slide 23: Summary
Lesaka Summary
Slide 24: Connect Group investment offers
Lesaka Connect Group Acquisition | 24 Connect Group investment offers. ... Large addressable market + Differentiated Merchant + Opportunity to integrate + Management team with + driven by secular trends, * business characterized by ° with Lesaka’s Consumer * : execution track record of successful gr
Slide 25: Offering compounding value for Merchants, Consumers, and Shareholders
Lesaka Connect Group Acquisition | 25 Offering compounding value for Merchants, Consumers, and Shareholders LESQAKQA Our Business Model Enables us to: + Design innovative products to better serve our customers * Offering more value to incentivize behavior Increasing value to ‘Consumers + Grow our Ec
Slide 26: Strategic focus areas for FY2022
LesaKa peat eiory Aopen 2a Strategic focus areas for FY2022 ~— Return consumer business to breakeven — re Grow merchant Grow Optimise Engage base active EPE costs world-class fintech stakeholders organisation
Slide 27: Thank you
LESQAKQA Thank you
Slide 28: Annexure A: Combined Income Statement for 12 months to 28 February 2022
Lesaka ii in Nein | 8 Annexure A: Combined Income Statement for 12 months to 28 February 2022 LESAKA CONNECT ADJUSTMENTS COMBINED $'000 $000 $000 $000 REVENUE 134 365 345 719 | 481 084 COST OF GOODS SOLD (23.695) (302 623) 4 (396 318) GROSS PROFIT 40670 24096 q 34766 SELLING, GENERAL, ADMINISTRATION
Slide 29: Annexure B: Connect Group Revenue Reconciliations
Lesaka Connect Group Acquisition | 29 Annexure B: Connect Group Revenue Reconciliations (R’000) CALCULATION 28 FEB 2022 28 FEB 2021 NET REVENUE AND GROSS PROFIT 000 000 Revenue (US GAAP) 5.151 666 378 4234 613 920 Refer 8K-A filing Face value of Airtime included in Revenue (3845 077656) (2182 17123)
Slide 30: Annexure C: Connect Group EBITDA Reconciliation to US GAAP
Lesaka Connect Group Acquisition | 30 Annexure C: Connect Group EBITDA Reconciliation to US GAAP REVENUE COST OF SALES GROSS PROFIT OTHER INCOME OPERATING EXPENSES ‘ADJUSTMENTS TO EBITDA ADDED BACK DEPRECIATION AMORTISATION OF INTANGIBLE ASSETS REALLOCATED FINANCE COSTS TRANSACTION COSTS EBITDA (NON
Slide 31: Annexure D: Defined Terms
Lesaka Connect Group Acquisition | 31 Annexure D: Defined Terms Unless specifically noted otherwise within this presentation, the following terms are hereby defined as follows: Constant Currency: We analyze our results of operations both in U.S. dollars, as presented in the consolidated financial st