Slide 1: Q1 2021 Investor Presentation
Q1 2021 Investor Presentation www.net1.com
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 caus
Slide 3: Defined Terms
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 statements, and supplementally in ZAR, because ZAR i
Slide 4: Quarterly Summary
QUARTERLY SUMMARY Q1 2021
Slide 5: Quarterly Summary
Quarterly Summary Q1 2021 Company highlights include: Q1 2021 Strategic Investments update: • Adjusted EBITDA loss was $9.8 million • Cell C’s recapitalization is ongoing while reporting EBITDA of ZAR 1.8 billion in H1 2020 • Loan book continues to grow with capital advanced increasing by 25% • Bank
Slide 6: Recent Trends
RecentTrends Trends through October: 1 900 Bill Payment Volume (‘000s) 1 800 • Continued growth in ATM transactions 1 700 • Sustained higher level of bill payment volumes 1 600 • 100% uptime of payment networks 1 500 • Demonstrates relevance and importance of our 1 400 payment networks 1 300 1 200 1
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Q1 2021
Slide 8: Q1 2021 Financial Highlights
Q1 2021 Financial Report Q1 2021 Financial Highlights Q1 2021 Q1 2020 Q4 2020 ($ Millions) Revenue 37 48 26 % change USD (23%) 42% % change Const. FX (12%) 42% Adjusted EBITDA (10) (4) (12) % change USD 150% (17%) EBITDA Margin (%) (27%) (8%) (46%) Fundamental Net Income* (13) (1) (12) % change USD
Slide 9: Business Segment Results – Q1 2021
Q1 2021 Financial Report Business Segment Results – Q1 2021 Q1 constant currency Processing Revenue • Processing constant currency revenue down 9% vs. Q1 R 651 2020 700 • Lower prepaid revenue 600 R 431 500 R 390 • FS constant currency revenue down 34% vs Q1 2020 ZAR Millions 400 • Lower account fee
Slide 10: Business Segment Results – Q1 2021
Q1 2021 Financial Report Business Segment Results – Q1 2021 USD (Millions) Revenue Operating Income Operating Margin 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 (1) Processing, excluding IPG $23 $29 $(5) $(4) (19%) (12%) % Change* (9%) 46% Financial services 8 14 (2) 0 (29%) 2% % Change* (34%) n
Slide 11: Balance Sheet Overview
Q1 2021 Financial Report Balance Sheet Overview USD (Millions) Sep 30, Jun 30, 2020 2020 Net Unrestricted Cash $ 209 $ 218 Investments and Equity Accounted Investments $ 77 $ 93 Total Assets $ 404 $ 454 Total Equity $ 355 $ 375 Total Debt $0 $0 Book Value / Share $ 6.26 $ 6.57 Net Cash / Share $ 3.6
Slide 12: Strategic Investments
Q1 2021 Financial Report Strategic Investments % held Balance Sheet Value (Sep2020) Equity Accounted: Bank Frick 35% $31 million $31 million (1) Finbond (JSE listed) 31% $14 million $14 million (2) Carbon 25% $7 million $16 million (3) Investments: Cell C 15% $0 million $0 million MobiKwik 12% $27 m
Slide 13: Segment Highlights
SEGMENT HIGHLIGHTS Q1 2021
Slide 14: Processing Segment Highlights
Q1 2021 | PROCESSING Segment Highlights Financial Highlights • Revenue - $24 million ($23 excluding IPG) • Excluding IPG, 9% constant currency decrease from $29 million in Q1 2020, due to lower prepaid product sales, partially offset by improved transaction volumes • 34% constant currency increase c
Slide 15: FS Segment Highlights
Q1 2021 | FS Segment Highlights Financial Highlights • Revenue - $8 million • 34% constant currency decrease from $14 million in Q1 2020, due to lower account fees • 8% constant currency decrease from $9 million in Q4 2020, due to lower lending revenue lag from low originations in Q4 • Operating los
Slide 16: FS Segment Highlights (Cont'd) – Key Trends
Q1 2020 | FS Segment Highlights (Cont’d) Key Trends Average Active EPE accounts Value of Loans Outstanding 1 400 Millions 2.0 1 200 1 000 Millions 1.5 800 1.0 600 0.5 400 0.0 200 0 As of quarter ended Outstanding Capital Deferred Service Fees Number of Paying SmartLife Policies 240 000 230 000 220 0
Slide 17: Technology Segment Highlights
Q1 2021 | Technology Segment Highlights Financial Highlights (continuing operations) • Revenue - $6 million • 14% constant currency decrease from $7 million in Q1 2020 • 212% constant currency increase compared to Q4 2020 due to an increase in hardware sales • Operating income - $2 million • 76% con
Slide 18: Appendix A
Appendix A
Slide 19: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Q1 2021 – Fundamental Net Loss and GAAP Net Loss and EBITDA loss 19