Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Net1 UEPS Technologies — Investor Presentation (May 2014)
25 slides from Lesaka Technologies's investor presentation, May 2014
Slide 1: Investor Presentation May 2014
Investor Presentation May 2014
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: Corporate Overview
ee ™ CNET Corporate Overview
Slide 4: Recurring Revenue with Growth Opportunities
Recurring Revenue with Growth Opportunities Approximately 72% of our revenue is generated by our recurring, transaction-based businesses Established Businesses (~72% of current revenue): Either are currently, or have the potential to generate double-digit growth over time Includes CPS (pension
Slide 5: Recent Developments
Recent Developments 2 years into our 5-Year SASSA contract awarded effective April 1, 2012 Serving 10 million cardholders and 22 million beneficiaries nationally 5-year contract through March 31, 2017; Leverage our national platform to drive revenue synergies and enter adjacent markets Nor
Slide 6: Four Pillars of Growth
Four Pillars of Growth South Africa International (UEPS/EMV) • CPS, EasyPay, Grindrod, merchant acquiring, • UEPS/EMV deployments in Africa, Middle and financial services East and other emerging countries • Largest card issuer with 10m accounts and • Interoperable with global EMV standards with most
Slide 7: Strategic Overview
ee ™ Cnet Strategic Overview
Slide 8: 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 the leading provider of transaction processing ser
Slide 9: Net1 at a Glance
Net1 at a Glance We are a leading provider of alternate payment systems in emerging, cash- based economies with significant unbanked or under-banked populations Leading transaction processor in South Africa, Korea, and Ghana 30+ million cardholders in >10 countries, including ~10m in South Afric
Slide 10: 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 11: Business Overview
ee ™ Business Overview = 11
Slide 12: Net1 Group Structure
Net1 Group Structure % of 3Q14 Reported Business Units Revenue Segment South African 47% Transaction Based Activities International 25% Transaction Based Activities 8% Smart Card Accounts 8% Financial Services 12% Hardware/ Other/Support Chip & SIM VTU Software Services 12
Slide 13: Cash Paymaster Services – Pension & Welfare
Cash Paymaster Services – Pension & Welfare CPS has been working with the South African government for over 20 years and was awarded a national 5-year contract in January 2012 We spent approximately $105 million during FY12 and FY13 to implement our national SASSA contract, including roughly $29 m
Slide 14: The South African Platform
The South African Platform We aim to leverage our investments to establish an end-to-end leading transaction processor in South Africa Pay Points Rural POS EasyPay NPS Mobile National Distribution Platform Welfare Unbanked Banked Payments Healthcare Fin’l Svcs 14
Slide 15: KSNET
KSNET KSNET has a leading position in a market with strong secular trends • Amongst top 3 processors in Korea Business Overview • Card processing represents >90% of revenues • Calendar 2013 revenue and EBITDA margin of $138 million and 25% respectively • Over 220,000 merchants and over 400,000 POS d
Slide 16: Net1 Mobile Solutions
Net1 Mobile Solutions Net1 Mobile Solutions (“N1MS”) is our dynamic division catering to local and international markets focused on Banking, MVC & Verification, Prepaid, MNO Solutions, 3rd Party Payments, Cryptography and Custom Development Variable PIN Advance Airtime Salary Payments & Deductions V
Slide 17: N1MS - Mobile Virtual Card
N1MS - Mobile Virtual Card The safest way to pay. The simplicity of the business model requires no new hardware or any changes to existing established relationships in the payment ecosphere Why VCpay? Security – we guarantee against fraud Simplicity – any network, any infrastructure Cost – low
Slide 18: Financial Highlights
——— Financial Highlights = 18
Slide 19: Business Model Characteristics
Business Model Characteristics • High recurring revenue Solid financial base • Debt as of March 2014 of $72.1 million • Strong cash flow generation • Product expansion in South Africa Strong business momentum • Multiple growth opportunities • New products / geographies • Established cardholder base
Slide 20: Revenue
Revenue In nine months to March 2014 (“YTDMAR14”), FY13 and FY12, we have posted year-over-year constant currency revenue growth of 46%, 31% and 25% respectively Consolidated Revenue, in $ Millions $500 $452 $450 $399 $390 $400 $343 $350 $300 $280 $247 $250 $200 $150 $100 $50 $0 FY09 FY10 FY11 FY12
Slide 21: Fundamental EPS
Fundamental EPS With the implementation of our SASSA contract completed in FY13, our investment phase is now behind us, and therefore in YTDMAR14, we posted year-over-year constant currency Fundamental EPS growth of 218% Fundamental Earnings Per Share, in $ $2.50 $2.01 $2.00 $1.53 $1.46 $1.42 $1.50
Slide 22: Resolution of SASSA Tender Litigation
Resolution of SASSA Tender Litigation Constitutional Court remedy calls for re-tender of SASSA contract SASSA awarded CPS the tender to distribute social grants nationally to 9.6 million grant recipients effective April 1, 2012 A losing contractor challenged the award of the contract, which wa
Slide 23: Appendix
——— Appendix = 23
Slide 24: Reconciliation of GAAP net income and EPS to fundamental
Reconciliation of GAAP net income and earnings per share, basic, to fundamental net income and earnings per share, basic Nine months ended March 31, 2014 and 2013 EPS, Net income EPS, basic Net income basic (USD’000) (USD) (ZAR’000) (ZAR) 2014 2013 2014 2013 2014 2013 2014 2013 GAAP 41,527 4,692 0.9
Slide 25: Contact
Contact Dhruv Chopra Head of Investor Relations +1-917-767-6722 [email protected]
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