Lesaka Technologies, Inc. · NASDAQ:LSAK
Lesaka Technologies — Net1 UEPS Technologies — Baird Business Solutions Conference 2010
15 slides from Lesaka Technologies's conference presentation, Feb 24, 2010
Slide 1: Investor Presentation - Baird Business Solutions Conference
Investor Presentation Baird Business Solutions Conference February 24, 2010
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: Investment Snapshot
Investment Snapshot NASDAQ: UEPS; JSE: NT1 Market Cap = $810 million Price (2/19/10) = $17.82 LTM Return = 20% Addressable market of 4 billion under-banked people worldwide… ….Drives significant long-term growth opportunities Strong momentum in recurring revenue, earnings and cash flows Expe
Slide 4: Who is Net1?
Who is Net1? We are a leading provider of alternate payment systems in emerging, cash- based economies with significant unbanked or under-banked populations Our proprietary smart card electronic wallet technology delivers secure and affordable electronic transactions in an online OR offline envi
Slide 5: What Does Net1 Do?
What Does Net1 Do? We provide transaction based services as well as hardware and software to facilitate electronic transactions on the Universal Electronic Payment System (UEPS). We can sell 255 different services on each card using our multi-functional electronic wallet. Our Services Our Products O
Slide 6: Snapshot of Our Existing Operations
Snapshot of Our Existing Operations While 65% of our current revenue comes from the monthly distribution of social welfare grants to over 3.5 million people in South Africa, we continue to diversify our sources of revenue. South Africa Revenue from South African Welfare Contracts as a % of Total • P
Slide 7: Significant Growth Opportunities
Significant Growth Opportunities Global payment systems Acquisitions New territories New service offerings (mobile banking, virtual credit card, etc.) Growth in current South African business – Social grant payments, wage payments, EasyPay 7
Slide 8: New Market Entry Strategy
New Market Entry Strategy Strategy: Lead with a key product to create sizeable recurring cardholder base Cross-sell additional products Establish partnerships or make acquisitions when appropriate Approach: Participate in the implementation and operation of our technology, with a specific fo
Slide 9: Identified Sources of Growth
Identified Sources of Growth We believe the success of our technology in countries like South Africa, Ghana and Iraq is repeatable on a worldwide basis. There are an estimated 4 billion people globally who can be classified as unbanked or under-banked. By Geography By Product/Service • Africa: • Tra
Slide 10: Financial Overview
Financial Overview • Recurring revenue Solid financial base • Debt-free balance sheet • Strong cash flow generation • Multiple growth opportunities Strong business momentum • Established, proven solution • Joint venture / partnership opportunities • Established cardholder base Significant operating
Slide 11: Financial Summary - Consolidated
Financial Summary - Consolidated Solid operating and liquidity performance Revenue (ZAR Millions) R2,500 21% CAGR R2,000 ($ Millions) FY06 FY07 FY08 FY09 1H10 CAGR R1,500 FY06-09 in local currency R1,000 Revenue $ 196.1 $ 224.0 $ 254.1 $ 246.8 $ 139.4 21% R500 Fundamental EBIT 89.8 103.2 119.8 112.2
Slide 12: Financial Summary - Segments
Financial Summary - Segments Transaction Based Activities are at the core of what we do ($ Millions) FY06 FY07 FY08 FY09 1H10 CAGR FY09 Revenue by Segment FY06-09 in local currency Hardware Transaction Based Activities /Software Transacti 26% on Based Revenue $ 117.2 $ 139.0 $ 153.4 $ 148.4 $ 90.4 2
Slide 13: Corporate History
Corporate History Year Event 1989 Company founded by Dr. Serge Belamant 1997 Incorporated as a Florida company 2004 Acquired Net1 Applied Technology Holdings Ltd. (South Africa) 2005 IPO on the NASDAQ GS market 2006 Acquired Prism Holdings (South Africa) 2008 Acquired BGS Smart Card Systems (Austria
Slide 14: Management Team
Management Team Name Title Relevant Experience Dr. Serge Belamant CEO and Chairman of the Board of Directors 27+ Herman Kotze CFO and Director 12+ Nitin Soma SVP – Information Technology 12+ Brenda Stewart Managing Director – Net1 UETS 22+ Leonid Delberg Managing Director – Net1 Austria 21+ Richard
Slide 15: Investor Relations Contact
Investor Relations Contact: Dhruv Chopra Phone: 212-626-6675 Email: [email protected]
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