Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Net1 UEPS Technologies — Jefferies Global TIMT Conference 2011
32 slides from Lesaka Technologies's conference presentation, May 2011
Slide 1: Investor Presentation Jefferies Global TIMT Conference May 2011
Investor Presentation Jefferies Global TIMT Conference May 2011
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 cau
Slide 3: Table of Contents
Table of Contents 1. Corporate Overview 2. Strategic Vision & Opportunities 3. Business Overview 4. Financial Highlights 3
Slide 4: Corporate Overview
ll ™ CNET Corporate Overview
Slide 5: Net1 Snapshot
Net1 Snapshot Net1 is a leading global provider of transaction processing and payment solutions and products NASDAQ: UEPS; JSE: NT1 Market Cap = $370 million Addressable market of 4 billion under-banked people worldwide creates significant growth opportunities FY 2010 Revenue = $280 million; EBI
Slide 6: Recurring Revenue with Growth Opportunities
Recurring Revenue with Growth Opportunities Roughly 80% of our revenue is generated by our recurring, transaction-based businesses Established Businesses (~80% of pro-forma revenue): Either are currently, or have the potential to generate double-digit growth over time Includes CPS (pension & w
Slide 7: Recent Developments
Recent Developments SASSA contract renewed through 09/30/11; New tender issued Long-term relationship since 1992 SASSA issued a new long-term RFP on 04/15/11; Award expected by Sept. 2011 Strong competitive position and high barriers to entry – Technology, track record, and distribution Cu
Slide 8: Key Growth Opportunities
Key Growth Opportunities KSNET • Industry leading growth and profitability • Revenue synergies – value added services, MVC, etc. EasyPay • Market share gains – volume, retail locations, industries • Growing product offering and distribution channels Mobile Virtual Card • Increase number of dis
Slide 9: Strategic Vision & Opportunities
Strategic Vision & Opportunities 9
Slide 10: Net1's Strategic Vision
Net1’s Strategic Vision Our mission has always been, and will continue to remain the provision of a secure and affordable electronic transaction platform and financial services for the world’s unbanked and under-banked populations South Africa: Be one of the leading providers of transaction proces
Slide 11: Global Unbanked/Under-Banked Population
Global Unbanked/Under-Banked Population Our addressable market remains sizeable, with over 50% of the world’s adult population unbanked or under-banked 2.5 Billion Adults, or Over 50% do not use 62% of the Unbanked Adults Live in Africa, Asia Formal/Semi-Formal Financial Services and Latin America 4
Slide 12: A Growing International Footprint
A Growing International Footprint Leading provider of alternate payment systems in emerging, cash-based economies with significant unbanked or under-banked populations Proprietary smart card electronic wallet technology delivers secure and affordable electronic transactions in an online OR offli
Slide 13: Net1's Transaction Processing Suite
Net1’s Transaction Processing Suite Healthcare Social Grant Claims Distribution Processing Medical/ Payroll/Wage Patient Payment Management UEPS National ID Banking Mobile Microloans/ Payments/ Insurance Banking 3rd Party Prepaid Switching/ Utilities/ Processing Airtime Bill Money Payments/ Transfer
Slide 14: Net1 Corporate Strategy
Net1 Corporate Strategy Build from an established base Focus on key areas to drive long-term growth Create value for all stakeholders 14
Slide 15: Net1 Corporate Strategy
Net1 Corporate Strategy Build from an established base Network effect: expand penetration and market share by focusing on our core products and investing in new customers/ capabilities – driving higher transaction volumes Scale newer initiatives: dedicate resources to accelerate expansion of new
Slide 16: Net1 Corporate Strategy
Net1 Corporate Strategy Build from an established base Focus on key areas to drive long-term growth KSNET EasyPay Mobile Virtual Card New countries with UEPS/FUSION 16
Slide 17: Net1 Corporate Strategy
Net1 Corporate Strategy Build from an established base Focus on key areas to drive long-term growth Create value for all stakeholders Achieve superior financial performance Reduce customer, country and currency political concentration Reinvest in R&D Increase focus on market awareness Impr
Slide 18: Business Overview
ll ™ Business Overview <i 18
Slide 19: Net1 Group Structure
Net1 Group Structure % of 3Q11 Reported Business Units Revenue Segment South African Cash 51% Transaction Paymaster Based Activities Services International 27% Transaction NUETS (Iraq) Based Activities 9% Smart Card Accounts 2% Financial Services Hardware/ Net1 Net1 Prism Other/Support 11% Software
Slide 20: Cash Paymaster Services – Pension & Welfare
Cash Paymaster Services – Pension & Welfare We are one of the largest and oldest suppliers to the South African government, with our contracts dating back almost 20 years On a pro-forma basis, this business accounts for 44% of revenue, down from more than 80% five years ago; Contracts have large
Slide 21: EasyPay
EasyPay Largest independent merchant processor in South Africa Transaction Volume, Millions 800 700 600 500 400 300 200 100 0 FY07 FY08 FY09 FY10 FY11* *FY11 Volume reflects YTDFY11 volume annualized Growth Areas: • Expand to tier 2 retailers • Increase network of bill issuers • Grow product offerin
Slide 22: MediKredit and FIHRST
MediKredit and FIHRST The acquisitions of MediKredit and FIHRST further expand Net1’s transaction processing capabilities in South Africa One of the leading real-time healthcare Leading third-party payroll and switching claims processors in South Africa solutions company in South Africa Opport
Slide 23: KSNET
KSNET KSNET has a leading position in a market with strong secular trends • 2nd largest processor in Korea Business Overview • Only payment processor in Korea to combine card VAN, banking VAN and payment gateway • Card VAN represents >90% of revenues • CY2010 constant currency revenue growth = 22%,
Slide 24: Net1 UETS activities in Ghana and Iraq
Net1 UETS activities in Ghana and Iraq Net1 has rolled out national implementations in Ghana and Iraq over the past few years Ghana Iraq In 2007 the Bank of Ghana selected Net1 to Net1 began working with the Iraqi create a common platform for all electronic government in 2008 initially to distribute
Slide 25: Mobile Virtual Card
Mobile Virtual Card The safest way to pay. The simplicity of the business model requires no new hardware or any changes to the existing established relationships in the payment ecosphere www.myvcpay.com Ease of Use is Key for Consumer Adoption 25
Slide 26: Financial Highlights
ll ™ Financial Highlights <i 26
Slide 27: Business Model Characteristics
Business Model Characteristics • High recurring revenue Solid financial base • Net Debt <0.5x CY2011E EBITDA • Strong cash flow generation • Multiple growth opportunities Strong business momentum • Established, proven solution • Joint venture / partnership opportunities • Established cardholder base
Slide 28: Revenue
Revenue Consolidated Revenue, in $ Millions $300 $280 $254 $247 $246 $250 $224 $200 $196 $150 $100 $50 $0 FY06 FY07 FY08 FY09 FY10 YTDFY11 SA Transaction Int'l Transaction Smart Card Financial Services Hardware/ Sof tware 28
Slide 29: Fundamental EPS
Fundamental EPS Fundamental Earnings Per Share, in $ $2.50 $2.01 $2.00 $1.55 $1.46 $1.50 $1.23 $1.13 $1.05 $1.00 $0.50 $0.00 FY06 FY07 FY08 FY09 FY10 YTDFY11 Note: Fundamental EPS excludes amortization of intangibles, stock based compensation and one-time items. 29
Slide 30: EBITDA
EBITDA Adjusted EBITDA, in $ Millions $140 $127 $121 $120 $112 $108 $100 $91 $83 $80 $60 $40 $20 $0 FY06 FY07 FY08 FY09 FY10 YTDFY11 Note: Adjusted EBITDA excludes one-time items. 30
Slide 31: Financial Summary - Segments
Financial Summary - Segments Transaction Based Activities are at the core of what we do ($ Millions) FY06 FY07 FY08 FY09 FY10 YTDFY11 SA Transaction Based Activities Starting in FY11, we Revenue $ 117.2 $ 139.0 $ 153.4 $ 148.4 $ 191.4 $ 138.3 provided SASSA with a Adjusted EBIT 60.7 80.1 86.0 85.4 1
Slide 32: Contact
Contact: Dhruv Chopra Vice President Investor Relations +1-212-626-6675 dchopra@net1.com
Net1 UEPS Technologies — Jefferies Global TIMT Conference 2011 on 6ix