Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Non-Deal Roadshow (October 2023)
42 slides from Lesaka Technologies's roadshow presentation, October 2023
Slide 1: Company Presentation
Investor presentation | 1 Company Presentation 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 $260m Average trading volume (3-month) ~30 000 shares Revenue (12 months ended 30 June 2023) $528m 1. Bloomberg: October 5, 2023
Slide 4: Company Overview
Company Company Overview Overview Section 1 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 OPPORTUNITY Dual-sided merchant and consumer ecosystem powered by proprietary technology OUR MARKET and high-touch distribution of solutions for financial inclusion Addressing a larg
Slide 6: Enabling merchants and improving lives of grant beneficiaries
Investor presentation | 6 OVERVIEW Improving the lives of South Africa’s COMPANY Enabling merchants to compete and grow grant beneficiaries By providing OPPORTUNITY OUR MARKET Innovative financial technology and value-creating solutions THE LESAKA PLATFORM PERFORMANCE FINANCIAL APPENDIX Our Values E
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 | + 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
Investor presentation | 14 OVERVIEW COMPANY Our platform offers growth and broader reach in an underpenetrated market A FinTech platform focused on cash and digitalization delivering financial inclusion to merchants and consumers OPPORTUNITY OUR MARKET Merchants Consumers TAM over TAM 26m: LSM¹ 1-6
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 PLATFORM Active EPE customers Loan book Active insurance policies ▲10% YoY ▲19% Yo
Slide 18: Successful turnaround completed with third consecutive profitable quarter
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 Section 4
Slide 20: FY23 has been transformational for Lesaka
Investor presentation | 20 OVERVIEW COMPANY FY23 has been transformational for Lesaka Execution and financial turnaround evident • Successful integration 1 • Secular growth trends remain in-tact OPPORTUNITY OUR MARKET • Growth driven by Kazang and Connect businesses - Rapid roll out and adoption of
Slide 21: Income Statement for the quarter
Investor presentation | 21 OVERVIEW COMPANY Income Statement for the quarter (FY23 Q4 and FY22 Q4) ZAR’000 $’000 Q4 - ended 30 June FY23 Q4 FY22 Q4 % Growth FY23 Q4 FY22 Q4 % Growth Average exchange rate for conversion from ZAR to $ R18.74 R15.56 20% R18.74 R15.56 20% OPPORTUNITY OUR MARKET Revenue
Slide 22: Income Statement for the year
Investor presentation | 22 OVERVIEW COMPANY Income Statement for the year (FY23 and FY22) ZAR’000 $’000 Twelve months ended 30 June FY23 FY22 % Growth FY23 FY22 % Growth Average exchange rate for conversion from ZAR to $ 17.94 15.20 18% 17.94 15.20 18% Revenue 9 471 800 3 383 166 >100% 527 971 222 6
Slide 23: Operating loss narrows
Investor presentation | 23 OVERVIEW COMPANY Operating loss narrows Unpacking components of operating loss Operating income (loss) OPPORTUNITY OUR MARKET THE LESAKA PLATFORM (R269m) (R67m) (R67m) (R126m) (R33m) (R58m) (R132m) (R275m) PERFORMANCE FINANCIAL (R58m) (R158m) (R611m) (R124m) FY22 FY23 FY22
Slide 24: Consistent quarterly growth carried through FY23
Investor presentation | 24 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 25: Segmental EBITDA analysis for the quarter
Investor presentation | 25 OVERVIEW COMPANY Segmental EBITDA analysis for the quarter (FY23 Q4 and FY23 Q3) ZAR’000 $’000 Q4 - ended 30 June FY23 Q4 FY23 Q3 % Growth FY23 Q4 FY23 Q3 % Growth Average exchange rate for conversion from ZAR to $ R18.74 R17.93 5% R18.74 R17.93 5% OPPORTUNITY OUR MARKET R
Slide 26: Segmental EBITDA analysis for the year
Investor presentation | 26 OVERVIEW COMPANY Segmental EBITDA analysis for the year (FY23 and FY22) ZAR’000 $’000 Twelve months ended 30 June FY23 FY22 % Growth FY23 FY22 % Growth Average exchange rate for conversion from ZAR to $ 17.94 15.20 18% 17.94 15.20 18% Revenue OPPORTUNITY Merchant 8 318 796
Slide 27: Consistent execution achieving financial turnaround: Revenue
Investor presentation | 27 OVERVIEW COMPANY Consistent execution achieving financial turnaround Despite persistently challenging operating environment Group Revenue OPPORTUNITY OUR MARKET >100% 18% R9 445m2 R2 468m R2 094m R1 895m THE LESAKA PLATFORM R8 319m R2 159m R3 383m R3 582m R1 651m R1 651m R
Slide 28: Consistent execution achieving financial turnaround: Adjusted EBITDA
Investor presentation | 28 OVERVIEW COMPANY Consistent execution achieving financial turnaround Despite persistently challenging operating environment Group Adjusted EBITDA (loss) OPPORTUNITY OUR MARKET >100% >100% R498m R158m R78m R602m R60m R154m THE LESAKA PLATFORM R192m R192 R59m R127m R127m (R1
Slide 29: Consistent quarterly growth: loss per share and cash from operations
Investor presentation | 29 OVERVIEW COMPANY Consistent quarterly growth carried through FY23 Delivering positive cash from business operations at Group level Basic and fundamental 1 loss per share (ZAR) Cash generated from/(utilized in) business operations 2 OPPORTUNITY OUR MARKET R7m (R2.66) (R0.76
Slide 30: Generating positive cash flow at an operational level
Investor presentation | 30 OVERVIEW COMPANY Generating positive cash flow at an operational level Summary Group cash flow (Rm) FY23 Q4 FY23 Q3 FY23 Q2 Cash generated from business operations¹ 197 141 147 OPPORTUNITY OUR MARKET Ordinary working capital requirements are stable Interest paid (59) (57)
Slide 31: Outlook: FY24 and medium-term financial objectives
Investor presentation | 31 OVERVIEW COMPANY Outlook FY24 and medium-term financial objectives OPPORTUNITY OUR MARKET Quarterly Annual 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 32: Questions
Investor presentation | 32 Questions
Slide 33: Appendix
Lesaka Appendix Section 5
Slide 34: Disaggregation of revenue on a quarterly basis
Investor presentation | 34 OVERVIEW COMPANY Disaggregation of revenue (ZAR’000) on a quarterly basis Group Revenue Group Revenue Merchant Consumer OPPORTUNITY OUR MARKET 2% 9% 3% 308 990 2 467 868 2 158 878 284 686 4 161 2 402 288 2117 602 21 549 1 399 308 990 22 487 284 686 55 474 77 501 28 562 244
Slide 35: Disaggregation of revenue for the year
Investor presentation | 35 OVERVIEW COMPANY Disaggregation of revenue (ZAR’000) for the year Group Revenue Group Revenue Merchant Consumer OPPORTUNITY OUR MARKET 179% 249% 8 318 796 9 445 446 12% 87 350 1 126 650 - 341 165 9 921 1 126 650 103 657 1 002 021 11 125 349 902 327 862 THE LESAKA PLATFORM
Slide 36: Glossary
Investor presentation | 36 OVERVIEW COMPANY Glossary MSME Micro, small and medium enterprise SMME Small, medium, and micro enterprise OPPORTUNITY OUR MARKET Kazang VAS offering Kazang is a leader in prepaid value-added services in Southern Africa. We help shop owners, traders and other entrepreneurs
Slide 37: Glossary
Investor presentation | 37 OVERVIEW COMPANY Glossary OPPORTUNITY OUR MARKET THE LESAKA PLATFORM Cash vault Kazang offering PERFORMANCE FINANCIAL APPENDIX Partnerships enabling supply chain payments at Lesaka ” means “ kraal” in Sesotho and Setswana. Spaza shops and superettes Merchant locations
Slide 38: Glossary
Investor presentation | 38 OVERVIEW COMPANY Glossary Lesaka "kraal" Lesaka ” means “ kraal” in Sesotho and Setswana. A “kraal” protects the most valuable assets of a community, their livestock LSM Living standards measure OPPORTUNITY OUR MARKET EPE EasyPay Everywhere Easy Pay Insurance EasyPay insur
Slide 39: Use of Non-GAAP measures
Investor presentation | 39 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 OPPORTUNITY most directly comparable GAAP measures. We have receiv
Slide 40: Reconciliation of non-GAAP measures | Quarterly
Investor presentation | 40 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 41: Reconciliation of non-GAAP measures | Year to date
Investor presentation | 41 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 42: End
Investor presentation | 42 End
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