Slide 1: Q2 2022 Investor Presentation
Q2 2022 INVESTOR PRESENTATION February 10, 2022
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: Operating Segments
OPERATING SEGMENTS The Company discloses segment information as reflected in the management information systems reports that its chief operating decision maker uses in making decisions and to report certain entity-wide disclosures about products and services, and the countries in which the entity ho
Slide 5: Our Vision and Purpose
OUR VISION AND PURPOSE 5
Slide 6: Our Vision
OUR VISION To Build and Operate the Leading South African Full-Service FinTech Platform Offering Payment Processing and Financial Services to Underserved Merchants and Consumers 6
Slide 7: Our Purpose
OUR PURPOSE To Improve Peoples’ Lives by Bringing Financial Inclusion to South Africa’s Underserved Consumers & Merchants 7
Slide 8: Proposed Connect Acquisition
PROPOSED CONNECT ACQUISITION 8
Slide 9: Proposed Connect Transaction Will Transform Our Merchant Business
PROPOSED CONNECT TRANSACTION WILL TRANSFORM OUR MERCHANT BUSINESS CONSUMER BANKING South African Leader in BRANCH Financial Services for INFRASTRUCTURE Underbanked Consumers INSURANCE ATM CONSUMER INFRASTRUCTURE LENDING + CASH MERCHANT MANAGEMENT LENDING South African Leader in MSME Merchant Service
Slide 10: End-to-End Fintech Capabilities for All Merchants
END-TO-END FINTECH CAPABILITIES FOR ALL MERCHANTS MARKET SERVICES OFFERED Integrated POS, VAS, Cash Management, Enterprise Gift Cards, Loyalty, Promotions, Tier-1 Financial Services, e-Commerce NEW MARKETS FOR NET1 Commercial / Formal POS, VAS, Cash Management & Financial Tier-2 & 3 Services CORE MA
Slide 11: Financial Performance
FINANCIAL PERFORMANCE 11
Slide 12: Q2 2022 Financial Performance: Income Statement
Q2 2022 FINANCIAL PERFORMANCE: INCOME STATEMENT Q2 2022 Q2 2021 Q2 2022 characterized by: (USD ‘000, except per share ($))(1) • Lower revenue primarily due to lower hardware sales driven by the global chip shortage and fewer prepaid airtime sales. Revenue $31,114 $32,305 % change Const. FX (4.0%) •
Slide 13: Q2 2022 Financial Performance: Segment Review
Q2 2022 FINANCIAL PERFORMANCE: SEGMENT REVIEW • Consumer segment benefited from the increased active EPE accounts as well as cost savings. • Merchant segment declined due to fewer hardware and prepaid airtime sales. • Improvement in consolidated EBITDA reflects evidence of the turnaround strategy US
Slide 14: Q2 2022 Financial Performance: Balance Sheet
Q2 2022 FINANCIAL PERFORMANCE: BALANCE SHEET (USD millions except per share data) December 31, 2021 June 30, 2021 Net Cash(1) $192 $210 Investments and Equity Accounted Investments $84 $86 Total Assets $424 $428 Total Equity and Redeemable Common Stock $325 $361 Total Debt(2) $48 $14 Book Value / Sh
Slide 15: Appendix
APPENDIX 15
Slide 16: Reconciliation of GAAP Operating Loss to EBITDA Loss and Adjusted EBITDA Loss
RECONCILIATION OF GAAP OPERATING LOSS TO EBITDA LOSS AND ADJUSTED EBITDA LOSS USD (‘000) Q2 2021 Q2 2020 Operating loss - GAAP $(9,427) $(15,205) Depreciation and amortization $726 $1,074 Negative EBITDA $(8,701) $(14,131) Transaction costs $1,642 $1,339 Allowance for doubtful EMI loans receivable $
Slide 17: Annexure A: Recon of Non-GAAP Measures
ANNEXURE: A RECON OF NON-GAAP MEASURES Three months ended Dec-21 Dec-20 USD '000 EPS, basic ($) USD '000 EPS, basic ($) Fundamental net loss (Non-GAAP) $(7,535) (0.13) $(12,822) (0.23) Unrealized loss related to fair value adjustment to currency options (2,429) - Transaction costs (1,642) (1,339) St
Slide 18: Thank You
THANK YOU