Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Net1 UEPS Technologies — Q3 2021 Earnings Presentation
19 slides from Lesaka Technologies's earnings presentation, May 2021
Slide 1: Q3 2021 Investor Presentation
Q3 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 Q3 2021
Slide 5: Quarterly Summary
Quarterly Summary Q3 2021 Company highlights include: Q3 2021 Strategic Investments update: • Continued progress scaling the current business as • Cell C – Ongoing progress on its recapitalization well as pursuing strategic initiatives plan, but delivering improved operational results. • Preparing f
Slide 6: Recent Trends
RecentTrends Trends through April 2021: 1,900 Bill Payment Volume (in ‘000s) 1,800 • Sequential moderate decrease in ATM transactions 1,700 Bill Pay Vols TTM in the quarter 1,600 • Sustained higher level of bill payment volumes 1,500 compared to pre-lockdown in March 2020 1,400 • 100% uptime of paym
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Q3 2021
Slide 8: Q3 2021 Financial Highlights
Q3 2021 Financial Report Q3 2021 Financial Highlights Q3 2021 Q3 2020 Q2 2021 ($ Millions) Revenue 29 35 32 % change USD (17%) (9%) % change Const. FX (19%) (12%) Adjusted EBITDA (13) (6) (13) % change USD 117% 0% EBITDA Margin (%) (45%) (17%) (41%) Fundamental Net Income* (14) (6) (13) % change USD
Slide 9: Business Segment Results – Q3 2021
Q3 2021 Financial Report Business Segment Results – Q3 2021 Q3 constant currency Processing Revenue • Processing constant currency revenue down 13% vs. Q3 2020 R 321 330 • Lower prepaid revenue and transaction fees 320 310 • FS constant currency revenue down 15% vs Q3 2020 ZAR Millions 300 R 284 R 2
Slide 10: Business Segment Results – Q3 2021
Q3 2021 Financial Report Business Segment Results – Q3 2021 USD (Millions) Revenue Operating Income Operating Margin 3Q 2021 3Q 2020 3Q 2021 3Q 2020 3Q 2021 3Q 2020 Processing, excluding IPG(1) 19 21 (7) (9) (40%) (44%) % Change* (13%) (21%) Financial services 10 12 (2) (2) (21%) (15%) % Change* (15
Slide 11: Balance Sheet Overview
Q3 2021 Financial Report Balance Sheet Overview USD (Millions) Mar 31, Jun 30, 2021 2020 Net Unrestricted Cash $ 208 $ 218 Investments and Equity Accounted Investments $ 62 $ 93 Total Assets $ 416 $ 454 Total Equity $ 359 $ 375 Total Debt $0 $0 Book Value / Share $ 6.35 $ 6.62 Net Cash / Share $ 3.6
Slide 12: Strategic Investments
Q3 2021 Financial Report Strategic Investments % held Balance Sheet Value (Mar2021) Equity Accounted: Finbond (JSE listed) 31% $15 million $25 million (1) Carbon 25% $6 million $16 million (2) Investments: Cell C 15% $0 million $0 million MobiKwik 12% $53million $53 million (3) TOTAL $74million $94
Slide 13: Segment Highlights
SEGMENT HIGHLIGHTS Q3 2021
Slide 14: Processing Segment Highlights
Q3 2021 | PROCESSING Segment Highlights Financial Highlights • Revenue - $19 million • Excluding IPG, 13% constant currency decrease from $21 million in Q3 2020, due to lower prepaid product sales and modest reduction in transaction volumes • 7% constant currency decrease compared to Q2 2021 • Opera
Slide 15: FS Segment Highlights
Q3 2021 | FS Segment Highlights Financial Highlights • Revenue - $10 million • 15% constant currency decrease from $12 million in Q3 2020, due to lower account fees, partially offset by increase in insurance revenue • 2% constant currency increase from $10 million in Q2 2021, due to an increase in i
Slide 16: FS Segment Highlights (Cont'd) Key Trends
Q3 2021 | FS Segment Highlights (Cont’d) Key Trends Average Active EPE accounts Value of Loans Outstanding 600 Millions 1.2 500 Millions 1.0 400 0.8 0.6 300 0.4 200 0.2 100 0.0 0 As of quarter ended Outstanding Capital Deferred Service Fees Number of Paying SmartLife Policies 240,000 230,000 220,000
Slide 17: Technology Segment Highlights
Q3 2021 | Technology Segment Highlights Financial Highlights (continuing operations) • Revenue - $2 million • 51% constant currency decrease from $4 million in Q3 2020 • 57% constant currency decrease compared to Q2 2021 due to lower hardware sales • Operating income - $0 million • 87% constant curr
Slide 18: Appendix A
Appendix A
Slide 19: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Q3 2021 – Fundamental Net Loss and GAAP Net Loss and EBITDA loss 19
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