Lesaka Technologies, Inc. · NASDAQ:LSAK

Lesaka Technologies — Net1 UEPS Technologies — Investor Presentation (May 2019)

20 slides from Lesaka Technologies's investor presentation, May 2019

  1. Slide 1: Investor Presentation May 2019

    MAY 2019 INVESTOR PRESENTATION NET1 UEPS TECHNOLOGIES INC. net1.com HERMAN KOTZE, CHIEF EXECUTIVE OFFICER DHRUV CHOPRA, GVP, IR

  2. Slide 2: Safe Harbour Statement

    MAY 2019 SAFE HARBOUR 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

  3. Slide 3: Overview

    MAY 2019 OVERVIEW 3

  4. Slide 4: Net1 is a fintech leader in payments, financial services and processing for the unbanked

    MAY 2019 OVERVIEW Net1 is a fintech leader in payments, financial services and processing for the unbanked Microloans Insurance VAS SOUTH AFRICAN FINTECH LEADER KSNET EasyPay • >1 million banking customers ATMs IPG • Leader in microloans+insurance to unbanked • Own last mile national distribution ne

  5. Slide 5: Globally, our collection of assets provide a strong foundation

    MAY 2019 INTERNATIONAL PAYMENTS MARKET OPPORTUNITY Globally, our collection of assets provide a strong foundation GLOBAL REACH TECHNOLOGY 19 office or service locations globally • Core UEPS/EMV platform • Tokenization – virtual card • Mobile banking/payments (QR) • Crypto-asset storage • Card proces

  6. Slide 6: Strategic Focus

    MAY 2019 STRATEGIC FOCUS 6

  7. Slide 7: Following Q2 2019, we set the following short-term goals

    MAY 2019 SHORT-TERM STRATEGIC FOCUS Following Q2 2019, we set the following short-term goals 1) Obtain break-even in our South African operations Progress: • Reduced headcount and costs; • On track for monthly EBITDA break-even in June 2019 2) Strengthen balance sheet Progress: • Settled $28 million

  8. Slide 8: Focus on four key pillars to drive long term growth and profitability

    MAY 2019 LONG-TERM STRATEGIC FOCUS Focus on four key pillars to drive long term growth and profitability SOUTH AFRICA AFRICA EU/ASIA (IPG) KOREA Financial Inclusion Mobile Payments, Digital Issuing, Acquiring, Improve growth and (Individuals) Financial services, UEPS Processing (SMEs) profitability

  9. Slide 9: Investment Company Highlights

    MAY 2019 INVESTMENT COMPANY HIGHLIGHTS 9

  10. Slide 10: Valuation

    MAY 2019 VALUATION 10

  11. Slide 11: Key Investments

    MAY 2019 VALUE OF STRATEGIC INVESTMENTS, MAR 31, 2019 KEY INVESTMENTS % Held Balance Sheet (Mar 2019) Value Equity Accounted Bank Frick 35% $46 million >$46 million (1) Finbond (JSE listed) 29% $46 million $87 million (2) OneFi 25% $8 million $25-$35 million (3) DNI 38% $74 million $74 million (4) I

  12. Slide 12: F19 losses due to SASSA contract expiry & EPE auto-migration

    MAY 2019 VALUATION F19 losses due to SASSA contract expiry & EPE auto-migration EV = $180m; FY19e Adj. EBITDA $(15)m vs $125m in FY18 SOTP MKT CAP LOW MID HIGH (Excl. core SA ops) $m $m $m $m Our transaction processing KSNET, EasyPay, ATMs and Fihrst = EBITDA* $25-30 million businesses alone had $25

  13. Slide 13: Appendix

    MAY 2019 APPENDIX 13

  14. Slide 14: Fiscal YTD and Q3 2019 Performance Summary

    MAY 2019 Fiscal YTD AND Q3 2019 PERFORMANCE SUMMARY YTD Fiscal 2019 highlights : • Revenue of $310 million and Fundamental EPS of $(0.07) (excl. non-cash adjustments of $1.41) • Adjusted EBITDA* of $(12) million • EPE accounts down from 2.5 million at June 30, 2018 to 1.1 million at March 31, 2019 •

  15. Slide 15: 2019 SA Revenue Analysis

    BARCLAYS 2019 2019 SA REVENUE ANALYSIS Progression of revenue contributors in South Africa in 2019 15

  16. Slide 16: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures Third quarter – Fundamental Net (Loss) Income and Negative EBITDA Three months ended Mar-19 Mar-18 $ '000 EPS, basic $ '000 EPS, basic Fundamental net (loss) income (Non-GAAP) (34,951) (0.62) 53,759 0.95 Impairment loss (5,305) (19,865) Loss on disposal of DNI (5,

  17. Slide 17: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures Year to date – Fundamental Net (Loss) Income Nine months ended Mar-19 Mar-18 $ '000 EPS, basic $ '000 EPS, basic Fundamental net income (Non-GAAP) (83,781) (1.48) 100,656 1.77 Impairment loss (13,502) (19,865) Loss on disposal of DNI (5,140) - Amortisation of inta

  18. Slide 18: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures Year to date –Negative EBITDA Nine months ended Mar-19 Mar-18 $ '000 EPS, basic $ '000 EPS, basic Net income attributable to net1 (GAAP) (123,924) (2.18) 61,480 1.08 Change in fair value of equity securities 42,099 (37,843) Loss on disposal of DNI 5,140 - Non-cont

  19. Slide 19: Reconciliation of non-GAAP measures

    Reconciliation of non-GAAP measures Third quarter –Negative EBITDA (continuing and discontinued operations) Three months ended March 31, 2019: Continuing Discontinued Total Operating income (GAAP) (22,355) 672 (21,683) Depreciation and amortization 7,454 2,427 9,881 Impairment loss - 5,305 5,305 (Ne

  20. Slide 20: Be Included

    Be Included CONTACT DHRUV CHOPRA Group Vice President, Investor Relations +1-917-767-6722 • dchopra@net1.com 20

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