Full Year Results 2019 Presentation 9 March 2020 Strictly Private - PowerPoint PPT Presentation

Full Year Results 2019 Presentation 9 March 2020 Strictly Private and Confidential

Disclaimer This announcement contains certain forward-looking statements with respect to the financial condition, results or operation and businesses of Network International Holdings plc. Such statements and forecasts by their nature involve risks and uncertainty because they relate to future events and circumstances. There are a number of other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances. 2

Strategic Update Simon Haslam, CEO 3

Enabling commerce in the world’s most underpenetrated payments markets >25 years USD43.8bn 752m 14.2m Heritage & scale Operating in payments Total processed Total number of Total number of cards volume 1 transactions 1 hosted 1 Network & >70,000 >200 >50 Only pan-regional provider reach Merchants Financial Institutions Countries across the MEA of digital payment solutions at scale, with presence across the entire payments value chain, delivering Network One >USD120m >15,000 Technology & integrated omnichannel Network Lite Invested in our Customers already capabilities payments services to our completed technology using our new POS Market leading technology transformation devices platforms customers USD334.9m 48.6% 13.3% Performance Underlying EBITDA 1 Revenue Industry leading underlying EBITDA margins 1 growth Not otes: 1 1. For definitions of Alternative Performance Measures and Key Performance Indicators, see pages 34-35 4

Strong financial performance and positive strategic progress Underlying EBITDA 1 Underlying EPS 1 Underlying FCF 1 Revenues USD334. D334.9m 9m USD172. D172.3m 3m USD103. D103.2m 2m USD21. D21.0 c 0 cents +12.4% YoY +13.3% YoY +7.5% YoY (5.7)% YoY Customers migrated to next generation technology platforms and transformation complete Notable customer wins and contract renewals Successful N-Genius rollout and good traction on other products Growth accelerators and Mastercard initiatives well underway Not otes: 1 1. For definitions of Alternative Performance Measures and Key Performance Indicators, see pages 34-35 5

Our strategic priorities remain unchanged • Capitalising on digital payments adoption and supporting financial inclusion • Pursuing opportunities for acceleration • Expanding customer base and focusing on high value segments • OUR STRATEGY Expanding product range and market penetration Providing solutions that allow our customers to • Leveraging technology and building capabilities bring digital payments to more consumers, leveraging our scale and • Developing commercial arrangements with strategic partners competitive advantage 6

Capitalising on digital payments adoption: Growth opportunity in our regions remains significant Middle East Africa tions 1 tions 1 Marke ket g growth wth i in value o of c card t transacti Marke ket g growth wth i in value o of c card t transacti USD300bn USD300bn 10% C 10 CAGR GR 16% C 16 CAGR GR USD200bn USD200bn USD100bn USD100bn USD0bn USD0bn 2012 2017 2022 2012 2017 2022 End-to-end capabilities anchor our competitive position • • Long-term track record, entrenched relationships Localised approach (schemes, currencies, languages, regs) • • Market leading technology and products Continued outsourcing, exemplified by new customer wins • • Barriers to entry high and new entrants present opportunities Bringing best in class service and products Source ce: : Edgar Dunn and Company (EDC) Market Attractiveness Report, 2017 data 7 Not otes: 1 1. POS transactions, excludes ATM transactions

Pursuing opportunities for acceleration – Saudi Arabia: Potential to become our second largest market c50 50% cUSD1bn addressable payments revenue pool Of t the p populati tion <30 ye year ars o of a age Market d data: card s shar are of t tran ansactions by v volume 33.4m 33. Card and digital Total p al population ion (Versu sus t s the UAE at at 15% 15%) 2017 9% 9% payments adoption at an early stage of 2. 2.5% 5% 1 Growth wth o 2 2022 projection 14% 14% 1. 1.4 Vision 2030 target 70% 70% Cards per a adult • Majority of transactions processed in-house by domestic banks • No significant independent payments processors of scale or with on-soil presence Well positioned as an • Intention to deploy on-soil presence to meet outsourcing regulatory requirements outsourcing partner • Successful track-record of delivery in neighbouring UAE • Working collaboratively with the regulator - SAMA Source: e: EDC Market Attractiveness Report, 2017 data; General Authority For Statistics KSA. 8 Not otes: 1 1. Annual population growth in 2017. 2. Projected 2022 volume of non-cash transactions by percentage

Pursuing opportunities for acceleration – Saudi Arabia: Considered and phased investment approach Milestones in 2019 Strategic plans for 2020 2021 and onwards To expand our services; regulator Incremental revenue generation from Set up legal entity and office requires on-soil presence the start of 2022 Initial focus on prepaid card solutions, Investment in local data centre and Included in the SAMA sandbox followed by debit, credit and acquiring technology capabilities Capital investment up to USD20m Processing a small volume of payments Remainder of capital investment up to out of Dubai for 4 customers USD5m EBITDA margin Long-term Potential to generate up Establish leadership in market slightly below objectives to 10% of total revenues Group average 9

Expanding customer base and focusing on high value segments: Diversified customer base across the business Merchant solutions customers Issuer solutions customers >90% of revenues are recurring Top 10 customers contribute c37% of revenue 10

Expanding customer base and focusing on high value segments: New business generation across regions Middle E East Africa ca New customer wins and partnerships Contract extensions and expanded mandates Effective cross-sell of products and value-add services 11

Expanding product range and market penetration: Reinventing the point of interaction for our customers On-The POS Online Go Alt Payments FXSolutions Fraud& Security Analytics & Reporting 3 rd party Network Lite Network One platforms Benefits of our N-Genius product suite • • Omnichannel approach provides a single view of consumer data Can swiftly integrate alternative payments such as Google Pay, and behavior Apple Pay, Alipay • • Proprietary software and cloud based system enable swift and Fresh look and feel – modern, lightweight, unobtrusive agile product updates 12

Expanding product range and market penetration: Over 15,000 N-Genius POS rolled out in the UAE N-Genius in action: Emirates case study N-Genius POS being rolled out across fleet Allows consumer purchases to be processed live in-flight No need to wait until landing and batch process Substantially reduces failed or fraudulent transactions 13

Expanding product range and market penetration: Growth in cross-selling and Value Added Services Next generation POS in development Strong Internal Governance N-Genius in rollout across Africa • • Customer demand encouraging Micro POS device that allows consumer to use their smartphone as the PIN keypad • N-Genius POS now live in four countries • Our lowest cost device • Rollout aligned with major customers and markets • Planned launch H2 • Online gateway to follow Strong Internal Governance Good demand for N-Genius online Issuer solutions in strong growth • Card Control in demand by a number of financial Proprietary, market leading online gateway institutions; ADCB in UAE, First Bank of Nigeria Giving our customers a truly omnichannel approach • Falcon has seen strong uptake since launch across all regions In rollout and used by over 300 UAE customers First to launch Direct Currency Conversion (DCC) at ATMs for Visa in the region 14

Leveraging technology and building capabilities: Successfully transitioned customers to new platforms Fully integrated • Improved service levels for customers • Cross-selling more effectively Network One • Omnichannel approach Agile • Greater ease of innovation • Flexible tech assist software development • Enabled 15x increase in processing capacity Pan-regional Network Lite • Serves customers across our regions • Faster entry to new markets • Enables uniform sales approach 15