FULL YEAR RESULTS PRESENTATION For the year ended 31 March 2020 - - PowerPoint PPT Presentation

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For the year ended 31 March 2020

FULL YEAR RESULTS PRESENTATION

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OUTLINE

Introduction Highlights for the period The opportunity Financial performance About our investments Prospects

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CAPITAL APPRECIATION

We are a financial technology company that seeks to serve or partner with established and emerging financial institutions and other large corporates

PAYMENTS & PAYMENT INFRASTRUCTURE SOFTWARE & SERVICES CTA ENTERPRISE DEVELOPMENT FUND

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RESPONSE TO COVID-19

Group companies were classified as essential services and were fully

• perational during “Level 5 Lockdown”

ORGANISATIONAL RESPONSE Our team’s health was our first priority Remote work of all non-essential staff Essential staff had protective gear and we implemented social distancing Regular decontamination of work area All staff remained employed All suppliers paid on time OPERATIONAL RESPONSE Client service was our priority Prior disaster preparedness and infrastructure investment paid dividends All services continued uninterrupted Used our expertise to help Government address the crisis – GovChat led initatives

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MACRO ENVIRONMENT All sectors of economy impacted Consumer confidence shattered Serious unemployment crisis Non-essential retail impacted markedly, slow recovery Many small businesses may not reopen SILVER LINING AND OPPORTUNITY Technology solutions exist to address many key issues that have arisen

• Social distancing
• Remote work
• Remote customer engagement
• Remote learning

Era of digitalisation has been yanked forward and likely to accelerate Increased impetus to reduce cash transactions Increased focus on financial inclusion

IMPACT OF COVID-19

Long-term implications are still unknown

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CAPITAL APPRECIATION’S POSITIONING

While challenges will undoubtedly exist and operating conditions will be tough, CAPPREC’s business is resilient

CAPPREC well capitalised Experienced management team Client exposure mostly larger, more resilient businesses Manageable exposure to “at risk” businesses Deep domain expertise in “high demand” areas Accelerating need for economy to digitalise Asset light business model with efficient working capital

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HIGHLIGHTS

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OPERATIONAL ACCOMPLISHMENTS

Proud to be associated with all major SA banks as well as many other banks and financial institutions, retailers and corporates

Growth continues across all business units with expanded and enhanced client relationships 32% increase in number of terminals in the hands of clients

• More than 185 000 terminals
• Good pipeline
• Scale operator with market share

gains Concluded ISO and Aggregator Agreement with Absa to complement ISO and Aggregator Agreement with Nedbank Synthesis expands into new verticals Additional Amazon Web Services (AWS) certifications and accreditations Synthesis a key launch partner for launch of SA’s region B-BBEE ratings maintained at Level 3 and will look to enhance ratings in coming year Expanded international service

• fferings across the Group

Launched GovChat Platform... ...directed resources to assist Government with COVID-19 response

• Dept of Social Development – SRD

Grant

• Dept of Health – Screening, Test

Facility Locator and Symptom Monitoring tool

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GROUP FINANCIAL HIGHLIGHTS

Fiscal 2020 - Year Ended 31 March 2020

EBITDA R 204.7m Trading profit R 206.1 m Profit after tax R 149.8 m

Profit

Revenue R 701.2 m

Revenue

Payments Division R 506.2 m Services Division R 195.0 m 29.1% 19.0% 20.2% 15.4% 7.7% 41.5% EPS 11.24 cents Dividends 5.00 cents

Earnings & Dividends Capitalisation & Cash resources

Equity R 1 309.0 m Available cash per share 39 cents Cash available for investment R 505.1 m 17.6% 34.9%

Noteworthy observations

Cash conversion – 100% of Trading Profit Cash balances is after cash outflows of more than R225 million on non operational items

Items impacting results

Specific Share Repurchase and other related transactions concluded in September 2019 Unrealized gain on open foreign exchange contract HEPS 10.67 cents 28.1%

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DIVISIONAL CONTRIBUTION

REVENUE Group Up 15.4%

Headcount grew by 68 people across the group, up 25%

80.4% FY19 FY20 Payments Services 72.2% 19.6% 27.8%

EBITDA Group Up 29.1%

79.2% FY19 FY20 Payments Services 75.0% 20.8% 25.0% + 41.5% + 7.7% + 24.1% + 19.6%

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PAYMENTS HIGHLIGHTS

✓ More than 185 000 terminals in hands of clients, up 32% ✓ Continued to gain market share ✓ Annuity based Estate Management fees up 56% ✓ Strong pipeline ✓ Expanded portfolio of transaction solutions ✓ Enhanced capability of solutions ✓ Android solutions warmly received ✓ Increased operational capacity

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SERVICES HIGHLIGHTS

✓ Strengthened relationship with existing clients ✓ New blue-chip client relationships established ✓ Secured additional AWS accreditation ✓ Continued to cement AWS leadership ✓ Diversified revenue stream – New verticals and geographies – Academy – Data Science ✓ Increased operational capacity ✓ Additional partnerships with complementary technology platforms and solutions ✓ AWS SA-based cloud region launched April 2020

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GOVCHAT PLATFORM LAUNCHED

A citizen-government engagement platform in cooperation with COGTA Platform development being done by Synthesis

Effective 1 March 2020

Available online, through FB Messenger, WhatsApp and USSD

> 80 million

messages transmitted

> 2.5 million

unique users

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GOVCHAT RESPONSE TO COVID-19

Screens applicants and onboards potential “Social Relief of Distress” (SRD) grant applicants, arguably one of the largest digitalisation initiatives in grant programmes across Africa

Department of Social Development

“Use case” specific functionality developed and tested on existing platform within a week Launched 11 May 2020

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GOVCHAT RESPONSE TO COVID-19

Diverted resources to open Platform to address Government’s urgent needs in fighting the pandemic

Department of Health

Screening tools, symptom tracking, testing facility referrals, test result notification, recent contact identification and notification, health form onboarding Live but not officially launched - >25 000 surveys already

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THE OPPORTUNITY

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Cost to serve clients Availability of service Nature of service

• ffered

Inclusive service Consumer demand pull Tech Big data Regulation New entrant banks and emerging financial services companies Incumbent banks and established financial service providers Retailers Telecom and

• ther consumer-

facing services companies

COMPELLING SECTOR OPPORTUNITIES

We have an opportunity to disrupt the business banking market and improve the way in which businesses bank in South Africa. We will continue to make use of technology to understand our clients better and further improve credit quality and client experience.

• Capitec 2020

Digital increasingly important in a post COVID-19 world

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AWS CAPE TOWN REGION – NOW LIVE!

23rd AWS region in the world and the first in Africa, comprising 3 Availability Zones 50+ AWS services readily available Enables compliance with the Protection of Personal Info Act (POPI) Data sovereignty concerns eliminated Support for low latency workloads As a leading AWS partner Synthesis is well positioned to benefit from this launch Synthesis and GovChat were Key “Launch Partners”

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AWS is clear market leader generating $10.2 billion in revenue in Q1 ’20, up 33% on prior year

Source: Gartner, Goldman Sachs, Insider Inc.

PUBLIC CLOUD MARKET

Market share of global providers

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Source: BMIT SA Cloud Computing Overview & Market Sizing 2019

R millions

CLOUD ADOPTION IN SOUTH AFRICA

IDC predicts cloud services will generate more than 100 000 net new jobs by 2022

CLOUD ADOPTION SA CLOUD COMPUTING MARKET SIZING ESTIMATE

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Source: Flexera 2020 State of the Cloud Report Note, excludes responses where no change stated; SMB is small or medium businesses

COVID IMPACT: GLOBAL PLANNED CLOUD USAGE

More than 50% of respondents state that cloud usage will be higher than initially planned Total Enterprise SMB

2% 8% 31% 26% 2% 9% 29% 30% 2% 4% 37% 13%

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Source: IDC COVID-19 Market Impact Survey

COVID IMPACT: SA TECH SPENDING PRIORITIES

Current vs Pre-Covid

Digital employee experience: digital workspaces, collaboration… Telecom services: fixed and mobile data packages Devices (laptops, smartphones, tablets, etc…) Security: architecture, governance, skills Public Cloud Software-as-a-service (SaaS) Mobile apps, mobile device mgmt. etc. Big Data & Analytics Public Cloud infrastructure-as-a-service Robotic process automation (RPA) Disaster recovery: own or 3rd party DC Applications transformation: DevOps, containerisation Enterprise networks: WAN optimization, SDN etc. Artificial intelligence (AI) Private / hybrid clouds Infrastructure (datacentre hardware, servers, storage,… Internet of Things (loT)

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Source: IDC Industry & Company Size Spending Guide

COVID IMPACT: SA IT SPEND BY VERTICAL

Finance Government Communications Manufacturing Professional & Personal Services Retail & Wholesale Resource Industries Utilities Healthcare Education Transportation Size Small Big $2.1B $1.6B $1.5B $1.1B $790M $744M $705M $494M $482M $357M $228M 2019 IT Spending Size

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COVID IMPACT ON PAYMENTS

Cash is increasingly unwelcome, limit spread of COVID-19 Increasing interest by merchants in digital payment Merchants increasingly interested in Value Added functionality Contactless payment – promoted by WHO Mobile payment QR Code payment eCommerce Technology is solution to financial inclusion

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ABOUT OUR INVESTMENTS

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CONSISTENT EXECUTION STRATEGY

Strategy has delivered substantial growth and our objectives remain unchanged since initially formulated

PARTNER INNOVATE EXECUTE

Work with financial institutions Create ecosystems for collaboration B2B B2B2C Deliver solutions to help clients realise their strategy Focus on infrastructure State of the art proprietary technology Entrepreneurial culture Hardware agnostic Add value Integrate seamlessly with legacy systems Grow market Service excellence Alleviate pain points User experience Create ecosystem Act as a innovation catalyst for clients Engender trust

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PAYMENTS & PAYMENT INFRASTRUCTURE

Enables banks and corporates to extract additional value and differentiate at the point of acquiring

PROPRIETARY PLATFORM Unique, proprietary technology platform enabling rapid development and implementation of customised corporate solutions across a diverse range of sectors BLUE CHIP CLIENTS Provide and operate payment and processing solutions for leading brands and International Banks END-TO-END Design, develop, implement and manage innovative, end-to-end solutions thereby enhancing and strengthening the relationships between banks, corporates and their clients COMPREHENSIVE OFFERINGS Available on a turn-key all-inclusive basis or à la carte UNIVERSAL ACQUIRING Pioneer of “Universal Acquiring” by supporting one uniform infrastructure for financial and non‐financial transactions

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SUBSTANTIAL GROWTH IN TERMINAL ESTATE

Terminals at period end, in thousands

• Number of terminals in clients’ hands grew 32% YoY,

56% 3yr CAGR

• Includes terminals subject to rental agreements

TOTAL TERMINAL ESTATE OWNED BY CLIENTS

• Number of terminals delivered to clients grew by 39%

YoY, 77% 3yr CAGR

• Paid for at time of delivery / prior to deployment
• Start to generate recurring revenue once activated

ACTIVE – IN MARKET

• Number of terminals in use grew by 42% YoY, 62% 3yr

CAGR

• Includes terminals subject to rental contracts
• Rentals may be renewed upon expiry or replaced with
• wned terminals

AWAITING DEPLOYMENT

• New terminals, once imported, are prepared for client and

readied for deployment

• Represents prospective recurring revenue once activated
• Includes ”rotating stock” for backup and replacement

32 40 53 77 95 117 135 April '17 Sep '17 Mar '18 Sep '18 Mar '19 Sep '19 Mar '20 32 48 76 103 128 146 178 April '17 Sep '17 Mar '18 Sep '18 Mar '19 Sept '19 Mar '20 16 22 38 40 41 33 30 April '17 Sep '17 Mar '18 Sep '18 Mar '19 Sep '19 Mar '20 49 60 92 118 140 154 185 April '17 Sep '17 Mar '18 Sep '18 Mar '19 Sep '19 Mar '20

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EXPANDED DEVICE PORTFOLIO

Diverse range, multiple platforms, varied price points and comprehensive use cases

Proprietary – Tertra/Telium

World leaders in payment devices and technology

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WELCOME HALO SMART PAYMENTS

Contactless payments on any Android device – without any additional hardware Halo has obtained EMV L2 Certification for Mastercard and VISA Developed by Synthesis

Contactless Cards Mobile Wallets Gadget Wallets

Halo is a software application that enables contactless payment acceptance on any NFC-enabled Android device. Supports contactless cards and mobile wallets such as Samsung Pay. Available as an SDK for App integration. TAP ON PHONE BENEFITS Affordable – No additional hardware needs to be purchased Simple – No training or device maintenance required Eco-friendly – No paper or consumables Safe – Contactless payments are more hygienic (as per WHO) Secure – All payments are authorised in real-time

Supported Card Schemes

Partnering with Nedbank to introduce Tap on Phone to South Africa

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AFRICAN RESONANCE INVESTMENT IN CAPACITY

Surge capacity exceeded 10 500 units

AVERAGE MONTHLY TERMINALS DISPATCHED

1 600 3 900 5 900 7 300 CY 2017 CY 2018 CY 2019 Last 6 months

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AFRICAN RESONANCE OPERATIONAL METRICS

CALL CENTRE - AVERAGE DURATION OF CALLS

(in minutes)

CALLS RESULTING IN TERMINAL SWAP OUT

(average across clients)

0% 5% 10% 15% 20% 25% Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 00:00 02:00 04:00 06:00 08:00 10:00 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20

Increased capacity requried to maintain high levels of availibility and service levels More than 85% of all issues resolved remotely in less than 15 minutes

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EVOLUTION IN PAYMENT SERVICES OFFERING

Dashpay’s progress continues

✓ Merchant terminal count increased by 58% ✓ Transaction related revenue increased by 40% ✓ ISO and Aggregator relationships concluded with Nedbank and Absa ✓ Enhanced service offering ✓ Remote Terminal Management System (RTMS) ✓ Vouchers ✓ Loyalty ✓ eCommerce ✓ Enhanced transacting platform

MAY ‘17 NOV ’18

R500m R1.4bn R2.2bn

~ 10x in 3 years

180% 57%

OCT ‘19 APR‘19

R2.9bn 31%

GROSS Tx VALUE

MAR ‘20

R4.9bn 69%

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SOFTWARE & SERVICES SEGMENT

Leading provider of technology products and solutions within the financial services industry

BLUE-CHIP CLIENTS

Absa, Afgri, Capitec, Investec, Nedbank, Standard Bank, Woolworths Financial Services and others

CLIENT CENTRIC

Delivering the highest business value with a strong service ethic

THOUGHT LEADERS

Acquiring and retaining the best software development skills

FOCUSED

Focus in the financial services sector

EXPERIENCED

Highly innovative team with a track record of only successful delivery

STRATEGIC RELATIONSHIPS

Key partnerships with Amazon’s AWS, the top-rated provider of cloud services globally

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OPERATING UNITS WITHIN SYNTHESIS

SYNTHESIS LABS Artificial intelligence, blockchain, machine learning SYNTHESIS ACADEMY Technical and cloud training tailored to

• rganisational objectives

Cloud transformation to assist the Enterprise in becoming cloud-ready, execute mass migrations and harness the benefits of public cloud platform First AWS Advanced Consulting partner in MEA Delivering exceptional end-user client experience, web and mobile touchpoints for financial services institutions while maintaining information security and transactional integrity Integration to enable regulatory reporting solutions for SARS (tax) and SARB (balance of payments), payment processing and exchange connectivity

DIGITAL CHANNELS CLOUD PLATFORM INTEGRATION PRODUCTS

• Data Intelligence is a

critical to drive business success

• Our team of Machine

Learning Engineers and Data Scientists are enabling clients to become truly Data-Driven

• Strategic use of data leads

to higher customer satisfaction and improved competitiveness

• 24 x 7 x 365 support

and management of high availability Cloud and hyper-scale infrastructure

• Remote upkeep and

strategic improvements to alleviate client

• perational concerns
• Service contracts are

long term and annuity in nature

DATA & ANALYTICS MANAGED SERVICES (MSP)

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Financial Services Competency DevOps Competency Well Architected Framework Competency Channel Partner SaaS Partner

CAPE TOWN REGION LAUNCH INITIATIVE

Synthesis develops suite of “Launch Products”

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PRIOR CASE STUDIES

Use of AI and machine learning in brand management 24/7/365 cloud managed infrastructure services globally RegTech & Customer Engagement Financial services in agricultural sector Outcomes-driven e-Learning LMS-based training to client

• rganisations

SYNTHESIS ACADEMY RegTech Platform Solution

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CRACKING MACHINE LEARNING TO SPEED UP CLIENT SERVICES

Machine Learning and Robotics address the challenge of email routing – enhanced capabilities operating 24/7 ensures speedy response times ‘What struck me is that Synthesis used design thinking to truly understand what the problem was. In a very short time they created a prototype, tested it with users and then adapted it. The solution they created revolved around genuine client satisfaction and not just completing a task, and that worked for us”, says Bandyopadhyay. Indranil Bandyopadhyay, Head of Business IT Enablement for Nedbank Insurance

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“UNATHI” – GOVCHAT’S NATURAL LANGUAGE CHATBOT

Rate over 60 000 Government spaces and services provided

Hospitals, Police Stations, Post Office branches, Home Affairs, Early Childhood Centres…

Report on Municipal services

Water, refuse, potholes…

Identify local representatives

• r traditional leaders

COVID-19 health tools COVID-19 SRD grant application management ...more to come...

Cloud native, hosted on AWS Backend Dashboards Issue Reporting SRD Grant Applications by Province

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Fully “serverless” architecture

• No servers…at all!
• Cloud native architecture, fully

managed by AWS

• Easily replicated for other

geographies and use cases Dynamic scalability

• Scales up to meet user demand,

and back down to save on costs

• Allows for a fixed cost per

interaction with close to zero

• verheads
• A model that suits the smallest to

the largest population, true scale AI-driven natural language experience

• Highly intuitive digital interface for

even the least sophisticated user

• Over the ubiquitous WhatsApp

messaging platform

• Ability to detect sentiment and learn

from prior interactions

GOVCHAT’S HYPER-SCALE DYNAMIC COST EFFECTIVE INFRASTRUCTURE

First 3 days post launch, peaking at ~600k messages per hour The following 11 days, constant usage peaking at ~150k per hour

SRD Use Case Platform Activity

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FINANCIAL PERFORMANCE

42 Revenue Growth – 8% YoY 6 Yr CAGR - 50% EBITDA Growth – 20% YoY 6 Yr CAGR - 61%

FINANCIAL PERFORMANCE

Payments & Payment Infrastructure Division

44.2 140.7 196.1 202.9 415.1 469.9 506.2 9.4 24.9 42.1 77.5 151.7 135.3 161.8 100 200 300 400 500 600 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20 Revenue EBITDA

R million

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41.6 46.1 51.9 77.6 93.1 137.8 195.0 12.6 15.9 19.8 29.9 33.9 43.3 53.8 50 100 150 200 250 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20 Gross Revenue EBITDA

R million

FINANCIAL PERFORMANCE

Software & Services Division

Revenue Growth – 41% YoY 6 Yr CAGR – 29% EBITDA Growth – 24% YoY 6 Yr CAGR – 27% EBITDA is after expensing additional ramp-up costs related to AWS Cloud Migration projects, the benefits of which will accrue in subsequent periods The benefit of last year’s expenditures is visible in this year’s growth

44 (R million) 31 March 2020 31 March 2019 % increase / (decrease) Revenue 701.2 607.7 15.4% Operating expenses 143.2 128.0 11.9% EBITDA 204.7 158.6 29.1% Trading profit 206.1 173.2 19.0% Finance income 38.7 38.3 1.0% Profit before taxation 206.0 173.8 18.5% Profit after tax 149.8 124.6 20.2% Normalised profit after tax 141.7 136.6 3.7% Earnings per share (cents) 11.24 8.33 34.9% Headline earnings per share (cents) 10.67 8.33 28.1% Normalised headline earnings per share (cents) 10.63 9.13 16.4% Cash earnings per share (cents) 11.12 10.06 10.6% Number of shares in issue (millions) 1 310.0 1 555.0 Number of shares in issue, net of treasury shares (millions) 1 201.2 1491.4

Strong growth from all divisions Includes gain on sale of Australia (R8.7m) and unrealised profit on open forward FX contract (R14.6m) Repurchased 45.1m treasury shares Total number of treasury shares is 108.8m After reversal of amortisation of intangibles arising from acquisitions, unrealised profit on FX contract and capital profit related to sale of Resonance Australia Includes development of new innovative products and building of operating capacity 245m ordinary shares cancelled in September

GROUP SUMMARISED STATEMENT OF COMPREHENSIVE INCOME

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(R million) 31 March 2020 31 March 2019 Growth Payments & Payment Infrastructure division Terminal rental income 32.5 79.3 (59.0%) Maintenance and support service fees from terminals 115.4 73.9 56.0% Sale of terminals 331.6 290.9 14.0% Transaction related income from terminals 21.2 15.1 40.4% Other revenue 5.5 10.7 (48.6%) Total 506.2 469.9 7.7% Software & Services division Services and consultancy fees 153.0 102.2 49.8% Licence and subscription fees 36.4 32.9 10.6% Hardware 5.6 2.7 107.4% Total 195.0 137.8 41.5% Total revenue 701.2 607.7 15.4% Geographic region South Africa 679.9 594.2 14.4% Rest of the world 21.3 13.5 57.8% Total revenue 701.2 607.7 15.4%

Recurring income continues to increase and constitutes c.48.1% of total revenue in 2020 (2019: 47.4%)

DIVISIONAL REVENUE COMPOSITION

Aligned to growth of deployed estate AR rental contracts reaching maturity replaced by terminal sales Growth in transaction activity and deep VAS solution uptake Will continue to be a focus in coming periods Reflects material growth in Cloud activities

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(R million) 31 March 2020 31 March 2019 ASSETS Goodwill 728.6 728.6 Intangible assets 61.8 62.3 Other non-current assets 60.7 72.2 Non-current assets 851.1 863.1 Cash and cash equivalents 505.1 611.2 Other current assets 91.6 70.3 Total assets 1 447.8 1 544.6 EQUITY AND LIABILITIES Equity 1 309.0 1 447.1 Non-current liabilities 40.8 34.6 Current liabilities 98.0 62.9 Total equity and liabilities 1 447.8 1 544.6 NAV per share (cents) 109.0 97.0 Cash available per share (cents) 38.6 39.3 Available for investment in organic growth and acquisition opportunities After using c.R225m in cash during the year on the Specific Share Repurchase and open market share repurchases

CONDENSED GROUP STATEMENT OF FINANCIAL POSITION

Uncomplicated Balance Sheet

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CASH FLOW (KEY FEATURES)

(R million)

31 March 2020

31 March 2019 Cashflow from operations 206.1 212.7 Proceeds from disposal of associate 35.0

• Changes in working capital

23.8 51.7 Finance income 38.7 38.3 Acquisition of property, plant and equipment (17.8) (16.5) Repurchase of 245 million ordinary shares (cancelled) (192.7) Purchase of 45.1 million treasury shares (2019: 8.0 million) (33.9) (7.1) Taxation paid (57.8) (62.3) Dividends paid (57.8) (63.6) Cash & cash equivalents at period end 505.1 611.2

Increased even with lower cash balances Effective asset management Total of 108.8 million shares at an average price

• f 76 cents per share

Resources to fund organic growth and acquisitions

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PROSPECTS

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• Accelerated growth in POS device estate as

penetration increases in banking as well as SMME sector

• Introduction of new platforms will generate new

growth and open up new market segments

• New product pipeline

PAYMENTS & PAYMENT INFRASTRUCTURE SOFTWARE & SERVICES

• Strong and growing adoption of cloud-based

solutions

• Regulatory compliance requirements
• Further international expansion
• Significant opportunity in new technologies
• A broad range of organic as well as acquisitive growth opportunities available to CAPPREC
• Acquisition activity will depend on strategic fit as well as valuations
• Economic climate is impacting our clients and remain present in our planning

GROWTH OPPORTUNITIES

GENERAL PROSPECTS

Capital Appreciation is well capitalised, with the management skills and technology to drive it’s growth strategy.

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OUR INVESTMENT CASE – A STRONG FOUNDATION ON WHICH TO GROW

✓ Seasoned management team – been through prior tough business cycles ✓ Well-positioned in an industry with healthy organic growth prospects ✓ A trusted partner to a strong network of large financial institutions ✓ Clients are well capitalised and established ✓ Diversified customer base ✓ Clients already have a presence in Africa – providing the potential ability for CAPPREC to expand regionally with them ✓ Well-established FinTech subsidiaries with strong track records Innovation Quality execution Financial performance ✓ Subsidiaries have strong organic growth prospects and acquisition opportunities ✓ Strong Group balance sheet with adequate headroom for organic and acquisitive growth ✓ Subsidiaries are highly cash generative ✓ Our products and services are targeted at mission-critical applications

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T H A N K Y O U

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AEDO Authenticated early debit order AI Artificial intelligence ATM Automated teller machine AWS Amazon Web Services B2B Business to business B2B2C Business to business to consumer B-BBEE Broad-Based Black Economic Empowerment Bn Billion CAGR Compound annual growth rate CAPPREC Capital Appreciation Limited Cash EPS Cash flow from operations, less taxation paid, divided by weighted average number of shares in issue CLC Code line clearing CRM Customer relationship management EBIT Earnings before interest and tax EBITDA Earnings before interest, tax, depreciation and amortisation EFT Electronic fund transfer EMV Europay, Mastercard, Visa EPS Earnings per share FinTech Financial technology FY Fiscal year GTV Gross transaction value HEPS Headline earnings per share IaaS Infrastructure as a Service ISO Independent sale organisation IT Information technology M Million NA Not available NAEDO Non-authenticated early debit order NAV Net asset value NFC Near field communication NHEPS Normalised headline earnings per share NM Not meaningful PaaS Platform as a Service POS Point of sale R Rand R&D Research and development REIT Real Estate Investment Trust RTC Request to credit SA South Africa SaaS Software as a Service SARB South African Reserve Bank SARS South African Revenue Services SDK Software Development Kit SME Small and medium enterprise Tx Transaction US$ United States Dollar ZAR South African Rands

GLOSSARY