Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Net1 UEPS Technologies — Q2 2021 Earnings Presentation
19 slides from Lesaka Technologies's earnings presentation, February 2021
Slide 1: Q2 2021 Investor Presentation
Q2 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 Q2 2021
Slide 5: Quarterly Summary
Quarterly Summary Q2 2021 Company highlights include: Q2 2021 Strategic Investments update: • Continue to see encouraging signs in operational • Cell C – Ongoing progress on its recapitalization and financial results in South Africa plan, but delivering improved operational results. • Another sequen
Slide 6: Recent Trends
RecentTrends Trends through December: 1 900 Bill Payment Volume (in ‘000s) 1 800 • Continued growth in ATM transactions in the quarter 1 700 1 600 • Sustained higher level of bill payment volumes 1 500 • 100% uptime of payment networks 1 400 • Demonstrates relevance and importance of our 1 300 payme
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Q2 2021
Slide 8: Q2 2021 Financial Highlights
Q2 2021 Financial Report Q2 2021 Financial Highlights Q2 2021 Q2 2020 Q1 2021 ($ Millions) Revenue 32 39 35 % change USD (18%) (9%) % change Const. FX (12%) (16%) Adjusted EBITDA (13) (7) (10) % change USD 86% 30% EBITDA Margin (%) (41%) (18%) (29%) Fundamental Net Income* (13) (6) (13) % change USD
Slide 9: Business Segment Results – Q2 2021
Q2 2021 Financial Report Business Segment Results – Q2 2021 Q2 constant currency Processing Revenue • Processing constant currency revenue down 16% vs. Q2 R 359 R 351 2020 360 • Lower prepaid revenue 340 • FS constant currency revenue down 16% vs Q2 2020 ZAR Millions 320 R 302 • Lower account fees 3
Slide 10: Business Segment Results – Q2 2021
Q2 2021 Financial Report Business Segment Results – Q2 2021 USD (Millions) Revenue Operating Income Operating Margin 2Q 2021 2Q 2020 2Q 2021 2Q 2020 2Q 2021 2Q 2020 Processing, excluding IPG(1) $20 $25 $(6) $(3) (29%) (12%) % Change* (16%) 107% Financial services 10 12 (1) (1) (11%) (10%) % Change*
Slide 11: Balance Sheet Overview
Q2 2021 Financial Report Balance Sheet Overview USD (Millions) Dec 31, Jun 30, 2020 2020 Net Unrestricted Cash $ 206 $ 218 Investments and Equity Accounted Investments $ 95 $ 93 Total Assets $ 477 $ 454 Total Equity $ 370 $ 375 Total Debt $0 $0 Book Value / Share $ 6.54 $ 6.62 Net Cash / Share $ 3.6
Slide 12: Strategic Investments
Q2 2021 Financial Report Strategic Investments % held Balance Sheet Value (Dec2020) Equity Accounted: Bank Frick 35% $33 million $30 million (1) Finbond (JSE listed) 31% $15 million $15 million (2) Carbon 25% $7 million $16 million (3) Investments: Cell C 15% $0 million $0 million MobiKwik 12% $42mi
Slide 13: Segment Highlights
SEGMENT HIGHLIGHTS Q2 2021
Slide 14: Processing Segment Highlights
Q2 2021 | PROCESSING Segment Highlights Financial Highlights • Revenue - $20 million ($20 excluding IPG) • Excluding IPG, 16% constant currency decrease from $25 million in Q2 2020, due to lower prepaid product sales and modest reduction in transaction volumes • 7% constant currency decrease compare
Slide 15: FS Segment Highlights
Q2 2021 | FS Segment Highlights Financial Highlights • Revenue - $10 million • 16% constant currency decrease from $12 million in Q2 2020, due to lower account fees • 8% constant currency increase from $8 million in Q1 2021, due to an increase in lending revenue • Operating loss – $(1) million • Q2
Slide 16: FS Segment Highlights (Cont'd)
Q2 2021 | FS Segment Highlights (Cont’d) Key Trends Average Active EPE accounts Value of Loans Outstanding 1 400 Millions 2.0 1 200 Millions 1 000 1.5 800 1.0 600 0.5 400 200 0.0 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
Q2 2021 | Technology Segment Highlights Financial Highlights (continuing operations) • Revenue - $5 million • 26% constant currency decrease from $5 million in Q2 2020 • 32% constant currency decrease compared to Q1 2021 due to lower hardware sales • Operating income - $1 million • 94% constant curr
Slide 18: Appendix A
Appendix A
Slide 19: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Q2 2021 – Fundamental Net Loss and GAAP Net Loss and EBITDA loss 19
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