Net1 Investor Day Presentation122017 PDF

INVESTOR DAY
DECEMBER 2017
www.net1.com
WELCOME
Safe Harbour 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 cause actual results to differ materially from those projected in the information.
The use of words such as “may”, “might”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “intend”,
“future”, “potential” or “continue”, and other similar expressions are intended to identify forward-looking statements.
All of these forward-looking statements are based on estimates and assumptions by our management that, although we believe to be
reasonable, are inherently uncertain. Forward-looking statements involve risks and uncertainties, including, but not limited to,
economic, competitive, governmental and technological factors outside of our control, that may cause our business, industry, strategy
or actual results to differ materially from the forward-looking statements.
These risks and uncertainties may include those discussed in the Company’s annual report on Form 10-K for the year ended June 30,
2017, on file with the Securities and Exchange Commission, and other factors which may not be known to us. Any forward-looking
statement speaks only as of its date. We undertake no obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise, except as required by law.
DECEMBER 2017 NET1 3

Agenda
1 2 3 4 5 6
Overview and Net1 International International Investment

Southern Africa KSNET & India
company strategy UEPS/EMV Payments Group summary
40min 30min 30min 15min 30min 30min
Philip Meyer,
Herman G. Kotze, Nanda Pillay, Carl Scheible, Herman G. Kotze, Herman G. Kotze,
MD International
CEO MD Southern Africa Head of UEPS/EMV CEO Payments Group CEO

Net1 Executive Team
Herman G. Kotze, Nanda Pillay, Dhruv Chopra, Nitin Soma, Philip Meyer, Carl Scheible,
CEO MD Southern Head of Investor Head of MD International Head of
Africa Relations Information Payments Group UEPS/EMV
Technology

WHY NET1 EXISTS
Why We Exist
NET1 VALUE PROPOSITION:
Our core purpose is to improve people’s lives by bringing financial inclusion to the world’s
underbanked consumers and helping small businesses access the financial services they need to
prosper.
We achieve this through our unique ability to efficiently digitise or tokenise the expensive and
difficult to achieve last mile of financial inclusion.
This includes UEPS which is accepted globally, is protected with biometric security, and enables
offline/online transacting which works anywhere, anytime and with no reliance on mobile networks.
Our unrivalled technology provides us with a platform for long-term sustainable growth in both
emerging and developed markets globally.
Highly experienced core of industry veterans who can move fast with the rigour needed of a global
financial services company.

Net1 is a Global Payment Solution Provider
Net1 has a global business with the required skills, products and licenses to pursue our mission of bringing financial
inclusiveness to the unbanked individuals and small businesses of the world and to be at the forefront of new innovation
in the fintech industry.
GLOBAL CUSTOMER BASE WITH 30+ MILLION CARDHOLDERS IN OVER 10 COUNTRIES
Leading provider of
alternate payment systems
in emerging, cash-based
economies with significant
unbanked or under-banked
populations.

Using Our Powers for Good
NET1 IS NOT JUST ANOTHER PAYMENTS BUSINESS - WE USE OUR DISRUPTIVE TECHNOLOGY TO EMPOWER PEOPLE
AT THE BOTTOM OF THE PYRAMID
Purchasing Power Parity in US$
$25,000+ 2BN PEOPLE

EARNING MORE
$5,000 to THAN $1,500 PER
$25,000 YEAR Exactly the same aspirations as other
people:
$1,000 to $5,000 4BN PEOPLE
• To have a bank account
EARNING LESS • To be able to transact electronically
THAN $1,500 PER • To improve their lives through access
$0 to $1,000 YEAR to credit and insurance
Net1 is best placed to provide the most targeted, cheap and secure financial services to our customers and we are very proud
of the difference we have made to millions of our clients’ lives.
Servicing Consumers at the Bottom of the Pyramid
TO MAKE MONEY OUR TECHNOLOGY NEEDS TO BE ROBUST AND SCALABLE AND WE HAVE TO BE A VERTICALLY
INTEGRATED BUSINESS, TAPPING INTO ALL THE REVENUE STREAMS THAT WE ENABLE
FINANCIAL INFLOWS
Net1 is vertically integrated:

Social Grant Money Transfer
Micro Loan • Net1 generates revenue by providing
Wage
the “bucket” for customers to receive
and store income
• Money then leaks from the “bucket” as
customers spend it on basic
requirements including utilities
Clothing
Utilities • Net1 drives additional revenue from
Prepaid Electricity helping facilitate this spend and
Food ESSENTIAL SPEND
through partnerships/investments in
Micro Insurance Prepaid Airtime
utility providers

Key Foundations of DNA to Build Strategy On
NET1 STRATEGY Innovative global culture
Disruptive technologies
Profitable business development
Efficient logistical support
Financially inclusive services

UNDERSTANDING NET1
Net1 History
Acquires Cash Paymaster Lists on NASDAQ Stock Acquires C4U and makes
Services Exchange strategic investments in
Five-year SASSA contract Bank Frick, DNI and Cell C
Acquires Moneyline awarded through a
IPO on
tender process
Johannesburg Disrupts SA grant
Stock Exchange payments using UEPS
with biometric Acquires Transact24 and
identification and offline Acquires BGS and Prism Masterpayment and
functionality makes strategic
investment in Mobikwik
Starts exporting UEPS Acquires KSNET
technology
1997 2001 2005 2009 2013 2017

Proven Technology Implementation Track Record
NET1 HAS A TRACK RECORD OF DEPLOYING AND IMPLEMENTING COMPLETE PAYMENT SYSTEMS IN COUNTRIES
THROUGHOUT AFRICA
Ghana National switch implemented with 21 banks on behalf

of the Ghanaian Reserve Bank
Iraq UEPS switch implemented to distribute 2 million grants
Namibia UEPS switch implemented in Namibian Post Office
servicing 300k customers
Malawi UEPS switch implemented with 7 banks in Malawi
Botswana UEPS switch implemented servicing 170k customers
Zimbabwe UEPS pilot switch implemented on behalf of the World

Food program
South Africa The UEPS/EMV technology has been deployed on an

extensive scale through the issuance of MasterCard-
branded UEPS/EMV cards to our 10.5 million social
welfare grant customers

SASSA Contract Reality
PERCEPTION: NET1 IS ENTIRELY DEPENDENT ON ITS CONTRACT WITH SASSA AND THE SOUTH AFRICAN
GOVERNMENT AND THAT THERE IS NO SUBSTANCE TO THE GROUP WITHOUT THIS BUSINESS
REALITY:
• Infrastructure and national footprint that we have established over the last 20 years
does not become redundant when our contract ends
– Unrivalled ability to provide payment and other financial services in the rural
and deep rural areas of South Africa (every South African within a 3-mile radius)
– Will continue to provide payment services as an independent service provider
(Net1 already has over two million EasyPay Everywhere bank account holders)
• Recent investments in DNI and Cell C increases footprint and provides access to
products that makes our value proposition even more compelling
• Will continue to provide Moneyline loans and SmartLife insurance products to our
customer base
• Capability and infrastructure that can be scaled to other emerging markets globally

Net1 Products
Payment Technologies Financial Services
• UEPS/EMV
• Microloans • Insurance
• Voting & ID
• Working Capital Finance • Banking
• Biometric ID
• Virtual Card
• Online/Offline Capability
• Multiple Wallets
• Social Security Issuing, Acquiring and Processing
• Voice Biometrics • Card Processing
• Money Transfer • Payment Gateway
• Healthcare • Merchant Acquiring
• Mobile VAS • Third-Party Payments
• ACH/Switching
Hardware Solutions • Integration (CUP, Alipay, WeChat Pay)
• SIM mask development

• Hardware Security Modules
• Point of sale solutions

Net1’s Innovative & Unrivalled UEPS & EMV Technologies
• Integrated with the MasterCard
EMV chip application
• Interoperability with any EMV
Point of Sale or ATM device
• Verification with biometrics
and/or PIN methods
• Supports multiple wallets
• A unique 10 digit cryptogram is
utilized to update the card
balance online or offline
• Both offline and online
transactions are supported
“UEPS WORKS ANYWHERE, ANYTIME, WITH NO RELIANCE ON MOBILE NETWORKS AND NO REQUIREMENT
FOR CONSTANT CONNECTIVITY”

Ongoing Technology Innovation & Future Projects
Recent Technology Achievements Example Future Projects
• Deploying contactless version of UEPS smart cards • Money transfers, prepaid airtime and prepaid
• Developed multi-currency prepaid card issuing electricity functionality on ATMs, mobiles and
system (awaiting Mastercard certification) websites
• Tokenization of prepaid electricity meters including • Development of a fully fledged independent

STS acquiring system to cater for E-commerce,
POS and ATM
• In process of becoming a Visa 3rd Party Processor
which will enable us to issue Visa cards globally • Expanding new biometric verification methods
• Incorporating Crypto-currencies to payment • Adding Block chain and crypto-currency

platforms capabilities to UEPS and ATM platforms
LEADING FINANCIAL TECHNOLOGIES SERVICE PROVIDER WITH A KEEN INTEREST IN BRINGING SIMPLE,
AFFORDABLE AND EASY TO USE BANKING TO THE GLOBAL COMMUNITY

Strategy Summary
Our key opportunities include:
• Financial Inclusion in South Africa – EPE, Cell C, DNI
• UEPS International – large scale UEPS/EMV projects in new countries, current initiatives in India and Nigeria
• IPG geographic and product expansion – consolidated offering, new products like crypto, remittances, etc., SME
market

Q&A

Agenda
1 2 3 4 5 6
Overview and Net1 International International Investment

Southern Africa KSNET & India
company strategy UEPS/EMV Payments Group summary
40min 30min 30min 15min 30min 30min
Philip Meyer,
Herman G. Kotze, Nanda Pillay, Carl Scheible, Herman G. Kotze, Herman G. Kotze,
MD International
CEO MD Southern Africa Head of UEPS/EMV CEO Payments Group CEO

SOUTHERN AFRICA
THE NET1 JOURNEY

What Does The NET1 Journey Consist of?
Lifestyle Payment New

Pension
Product Enabling Business
Related Business
Offering Platforms Developments
Heritage Future
The NET1 Journey

Pension
Related Business
Offerings Platforms Developments
Heritage Future
South Africa – Pension Related Business
Unrivaled Coverage
Every South African
• 600 mobile payment vehicles equipped with 1,200 mobile ATMS
within a 3-mile radius
• 150 Fixed Stores
• 10,000+ Pay points
• 3,800+ experienced staff
• Exceptionally strong management team including 100 people with

over 15 years experience
• Paid more than 10.7 million beneficiaries per month without fail
for last 60 months

Pension Related Business
UNIQUE COMPETITIVE ADVANTAGE – OWNING THE LAST MILE
600
Mobile
• Paid more than 10.7 million beneficiaries per Vehicles
month without fail for the last 60 months
• Face to face access to an untapped customer base 3,800

150 Fixed Staff
• Own bespoke, robust and scalable infrastructure – Stores Comple-
SASSA / ment
daylight competitors
BANKING
• High barriers to entry
PLATFORM
• Continuous technological innovations –

UEPS/EMV, biometrics, etc.
Merchant 10,000 Pay
Acquiring Points
“A PROUD HERITAGE – MATERIALLY IMPACTS AND BENEFITS THE LIVES OF OUR STAKEHOLDERS”
Net1’s Innovative & Unrivalled UEPS & EMV Technologies
• Integrated with the MasterCard
EMV chip application
• Interoperability with any EMV
Point of Sale or ATM device
• Verification with biometrics
and/or PIN methods
• Supports multiple wallets
• A unique 10 digit cryptogram is
utilized to update the card
balance online or offline
• Both offline and online
transactions are supported
“UEPS WORKS ANYWHERE, ANYTIME, WITH NO RELIANCE ON MOBILE NETWORKS AND NO REQUIREMENT
FOR CONSTANT CONNECTIVITY”

What Have We Learned?
1. Market has evolved from “banking” platform 600

Mobile
Vehicles
2. Customer centric and service delivery is core

150 Fixed
3,800
Staff
Stores Comple-
SASSA / ment
BANKING
3. Financial services requirements are increasing PLATFORM
Merchant 10,000 Pay

Acquiring Points
INTEGRATED INTO LIFESTYLE PRODUCT OFFERINGS

The NET1 Journey

Pension
Related Business
Heritage Future
Lifestyle Product Offerings
600
Mobile
Created a bespoke lifestyle product offering that Vehicles 3,800
is specifically tailored for this market: Merchant Staff
Acquiring Comple-
ment
1. BANKING PRODUCT
2. LOAN PRODUCT 150 Fixed 10,000 Pay

Stores LIFESTYLE Points
3. INSURANCE PRODUCT PRODUCT
OFFERINGS
4. MOBILE BANKING PLATFORM
ATM Infra- Mobile

structures Banking
Loans Insurance

Lifestyle Product Offerings Early Achievements
600
Mobile
Vehicles 3,800
1. Opened more than 2 million EPE bank accounts Merchant Staff
Acquiring Comple-
Created a lifestyle product offering ment
2.
that is specifically tailored for this market
3. Current offering includes:

• Banking products 150 Fixed 10,000 Pay
• Loans – currently 1.3 million clients Stores LIFESTYLE Points
• Insurance – 420,000 policies to date PRODUCT
• Manje mobile – prepaid airtime and electricity OFFERINGS
platform to over 1.7 million people
4. 1 million people utilise our ATM infrastructure ATM Infra- Mobile

structures Banking
5. Estate of merchant acquiring terminals
Loans Insurance
Continuous innovation to extend the offering

The NET1 Journey

Pension
Related Business
Heritage Future
Payment Enabling Platforms Business
OUR TRANSACTIONAL BUSINESS HAS EVOLVED OVER THE PAST 10 YEARS INTO A PAYMENT ENABLING SOLUTION
Chip/
SIM
VTU EasyPay
PAYMENT
• New competitors in the market and margins have been ENABLING
squeezed PLATFORMS
• Investments to date provide unique and unrivalled platform
• Business model is globally scalable FIHRST Crypto

Payment Enabling Platforms Early Achievements
1. Consolidation of these businesses has allowed us to leverage our

specific technology that exists between various business units
Chip/
• Allowing us to do vertical integration SIM
• Controlling the larger part of the value chain

• Resulting in higher margins (e.g. utilizing security
modules for token generation platform) VTU EasyPay
PAYMENT
ENABLING
PLATFORMS
2. Developing security modules that are primarily aimed at the
financial, retail, telecommunication and utilities.
3. Utillisation of chip/sim and cryptography in our own banking FIHRST Crypto

platform resulting in more control of the technology we can
deploy

The NET1 Journey

Pension
Related Business
Heritage Future
New Business Development
South Africa is one of Net1’s core markets, where we have maximum expertise, infrastructure and distribution. We intend to expand our
customer base as well as the products provided to that base.
#3 MOBILE OPERATOR IN SA – 15M+ SUBSCRIBERS LEADING DISTRIBUTOR OF STARTER PACKS

FOR CELL C
Strategic Rationale:
• Competitively manufacture/supply SIM cards Strategic Rationale:
• Cross-sell “prepaid starter packs” – new
annuity streams • Cross-sell DNI starter packs through Net1
• Recharges through EasyPay and Net1 • Cross-sell Net1 products through DNI’s 2,000
Financial Services branches agents and 5,000 points of presence
• VAS through EasyPay/Net1 Financial Services • Provide handset financing to DNI customers
• Provide banking and financial services • Offer DNI’s micro-jobbing platform to our
• Create cutting-edge mobile banking/payment clients
products • Assist DNI to establish mobile data
infrastructure in rural areas

CELL C & DNI Investments
• Cell C enables the ability to provide banking and prepaid • Largest provider of prepaid SIM cards in Southern Africa
services on mobile devices
• Issue an additional 5 – 7000 per month so that we can
• Enhance the offering i.e. EasyPay on mobile platforms access that demographic
• Provide immediate access and potential leverage to 7 • Have sales team of 2000 that will be trained to market
million users our lifestyle product
New Business Development Early Achievements

1. Develop SIM infrastructure to accommodate Cell C
2. Negotiate Lifestyle product offering from hardware to phone to tailored product
3. Provide credit to buy products on term basis

Southern Africa Summary
• SASSA risks are manageable and investments provides business optionality
• The South African business has provided the Net1 Group with a platform that will enable the expansion of our UEPS
banking solution outside South Africa
– Rand based cost platform
– Deep experience
– Unrivalled technology and innovation platform
• Our team has a track record of international large-scale project roll-out
• The consolidation of our payment enabling platforms have provided us with ability to deploy solutions that create
vertical integration – thereby creating stickiness to our product offering
• Finally, our investments into Cell C and DNI will provide for organic growth in our payment enabling platforms.
It will also provide us with the opportunity to enhance our lifestyle product offering
Q&A

INTERNATIONAL UEPS/EMV
Financial Inclusion Tipping Point
We are at a tipping point around Financial Inclusion.
1. POLITICAL & REGULATORY 2. INNOVATION 3. URGENCY
Political and regulatory tailwind Interesting and relevant product & Urgency: The time is now
enabling a more conducive business model innovation taking • “The Opportunity to drive
environment for change place Financial Inclusion is unique
• 2.5 billion people do not have • Technology led and mobile first to us and our time”
a bank account • Better understanding of people Ajay Banga,
• G20 has endorsed Financial and government needs President & CEO MasterCard
Inclusion
• Public-Private partnerships
emerging

The Opportunity WHERE THE UNBANKED LIVE
% of people aged 15 and over with an
“Banking the unbanked is a $380bn opportunity…”
account at a financial institution
62%
of adults worldwide
have an account at a
financial institution
or through a mobile
device, up from 51% 17.9%
in 2011. of people aged 15
and over in low
income economies
have a debit card
48.5% 5.4%
of females aged 15 of people aged 15
and over have an and over in Sub-Sarahan
account at a Africa use a mobile
financial institution, money account and
compared with 54% nothing else (global
of males. average is 1%).

The Market
The scale of the problem and the opportunity to solve for it is large
HUGE
+ = MARKET
OPPORTUNITY
2.5bn people $380bn

Market Sizing
Applying a multi variable filtering and scoring system to prioritise markets.
Market Size & Demographics
Commitment to
Social Benefits,
Financial Inclusion
& Ease of Entry
Payment
Efficiency &
Digitization

The Potential MARKET SIZE
AND
We see the potential for 50-100m
active users in 10-20 markets. DEMOGRAPHICS
Egypt,
Tanzania,
Ethiopia, Nigeria,
Kenya, DRC, Ghana,
UAE, Turkey,
Pakistan, India,
PAYMENT Myanmar, Indonesia, COMMITMENT
EFFICIENCY Philippines, Thailand, TO SOCIAL
AND Vietnam, Malaysia, BENEFICIARIES,
DIGITIZATION Mexico, Ecuador, FINANCIAL
Colombia, Chile, INCLUSION
Dom Rep, Brazil, … AND ENTRY
RIPE FOR SOCIAL BENEFITS DISRUPTION AND/OR INCREASED FINANCIAL INCLUSION

Net1 Uniquely Positioned
$40B 11m
processed since active cards
2012 in South
Africa
Net1 is uniquely positioned with proven $10B

technology and a track record. 17m processed
active users annually
700k $200m
active in closed savings
loop annually

Go to Market Strategy
Multi year services and operating contract
• JVCO vehicle • KYC/enroll recipients • Option at full

• Govt/Agency deployment
• Local bank • Gradual roll-out for • Hand over
• Net1 benefit acceptance • Offer managed
• Urban service
• Tailored product service offering • Rural
• Ongoing revenue
• Hire/train staff • Introduce other streams
financial services

International UEPS/EMV Summary
• There is a huge opportunity to solve the financial inclusion problem for the 2.5 billion unbanked
• Net1 is well positioned to leverage its identification and payments technology, track record and core competence
around social benefit disbursements internationally
• The window of opportunity is now
• We see a JV partnership as the best vehicle for rapid deployment
• Unique opportunity to build a global company with a purpose while creating significant value and returns for
shareholders
The window of
opportunity is now.
NET1
Q&A

KSNET & INDIA
South Korea is a Sophisticated eCommerce Market
SOUTH KOREA IS ONE OF THE
LARGEST ECOMMERCE MARKETS

IN ASIA
GDP of 92% 1.23

Population of mobile
$1.5 trillion of the
51.5 million population has subscriptions
in 2017 per person
internet
Source: Global Payment Report, Worldpay, 2017
WITH AN ADVANCED IT INFRASTRUCTURE, MOST HOUSEHOLDS HAVE INTERNET ACCESS AND MOST ADULTS
HAVE SMARTPHONE. MORE THAN HALF OF THESE INTERNET USERS SHOP ONLINE.

A Closer Look at KSNET
• The only total payment service provider in Korea (CardVAN/Payment Gateway/Banking VAN).
• Largest CardVAN sales network of over 600 agents throughout Korea.
• VAN services offered through 220,000 merchants (20% of merchants in Korea) with 450,000
Net1 POS terminals in operation.
• Lead by a team of industry veterans including CEO who ran the business prior to acquisition.
• Stable source of revenue supported by long-term agreement with agents.
• Duplicate IT system with active/stand-by systems, securing reliability in data processing.
• Top-level financial stability in the VAN industry

KSNET Opportunities
FOCUS ON FURTHER IMPROVING PROFITABILITY AND DELIVERING SYNERGIES WITH INTERNATIONAL PAYMENTS GROUP
• Higher cash conversion ratio following government mandated changes to terminal

subsidies
• Significant upside from Working Capital Finance offering to existing SME user base
• Rolling out new products to leverage existing investments and infrastructure
• Continue to engage with local mobile handset manufacturers and application

developers
• Synergy potential with IPG including crypto - KSNET already provides banking and
other services for Bithumb, one of the world's most heavily trafficked bitcoin
exchanges

KSNET Cash Flow Profile
KSNET’s EBITDA was $42 million in FY 2017, while free cash flow was approximately $35 million.
EBITDA less Capex (KRW billions)

45
40
35
30
25
20
15
10
5
0
2011 2012 2013 2014 2015 2016 2017
Source: FT Partners, CEO Monthly Payments Market Analysis, December 2017
The Median 2017 EV/EBITDA multiple for Applying the Median EV/EBITDA multiple to KSNET, would imply a
merchant acquirers/ processors was 14.1x value of $592 million – almost the current value of Net1!

India is a Large Opportunity That Requires Patience and Persistence
INDIA’S MIDDLE CLASS IS EXPECTED TO REACH
547 MILLION IN 2026

FROM
267 MILLION IN 2016
KEY Population: 1.26 billion Per Cap. Income: $1,475 Urban Density: 32%
METRICS GDP: $2.5 trillion GDP Growth: 7.5 – 8% Median Age: 27 years
INDIA IS A DIVERSE NATION, WELL ON A PATH TO ECONOMIC DEVELOPMENT AND SOCIAL UPLIFTMENT

New Government Driving Digitization to Achieve Financial Inclusion
53% (2016) OF INDIA’s

POPULATION IS BANKED, UP FROM 36% IN 2014
860 M 31 m 2.6m pos more

debit cards. credit cards 210k ATMs than
76% are for ATM ~2% of people > 75% in top
600,000 villages
cash out metros
Source: RBI Stats, April 2017
DIGITAL PAYMENTS IN INDIA IS EXPECTED TO BE A $500 BILLION MARKET BY 2020 (10x SIZE 2016)
“LAST MILE” FOR FINANCIAL INCLUSION IN INDIA IS MOBILE Source: BCG, Google

Mobikwik Allows Us to Build Scale, Capability & Recognition in India
We are now live with two virtual card deployments and looking to add new products and customers over the next two years.
Market size & demographics
Mobile Virtual Card ACS Services
Commitment to
Financial Inclusion
International Remittances UEPS/EMV
Digitization
Working Capital Finance Third-Party Processing

Revenue Models in India Will Vary and Evolve
We currently have three revenue models in India, and these will evolve over time to optimize our returns. Pricing in India is very competitive and
therefore building scale and volumes is critical in the near-to-medium term.
License Fees Transaction Fees Revenue Share
NET1’S OBJECTIVE IS TO BUILD A LARGE, RECURRING BUSINESS BY DRIVING VOLUME THROUGH MULTIPLE SERVICES

Mobikwik - #2 Digital Wallet Provider in India With 65 Million Users
We currently own 12% of MobiKwik and have board representation. We have worked closely with MobiKwik to evolve its strategy from a
payments only focus to one being a comprehensive financial services provider.
Registered Users (Million per month) 43

39 39 40 41
36 37 38
32 34 35
29 30
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17
Annualized GMV (INR millions)

4 700 4 600 4 800
4 200 4 500 4 300 4 400
4 100
3 200 3 300 3 200
2 500
1 700
Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17

Mobikwik – Launched One of the Largest Virtual Card Deployments
XXXX XXXX
XXX
B. SMART
260+ MILLION USERS WILL EVENTUALLY HAVE ACCESS TO MOBIKWIK’S VIRTUAL VISA CARD IN PHASES,
WITH 65 MILLION EXISTING USERS IN THE FIRST PHASE

UEPS/EMV Presents the Largest & Most Differentiated Opportunity
700+ million Indians live in rural areas and to date most of the government and bank led initiatives do not address
their financial inclusion needs as the focus is the urban youth. This is an opportunity for UEPS.
GOVERNMENT PROGRAMS
1. Offline and Online
MORE
Than 600 000 2. Biometric Authentication Social Welfare
villages 3. Multiple Wallets Direct Benefits Transfer
4. Audit Trails
MGNREGA (full employment)
5. Benefits Payments
6. Banking Jan-Dhan Accounts
DIVERSITY YOUTH
1,600+ 65% is below 7. Financial Services Insurance Covers
Dialects the age of 35
8. Interoperability
Rural + Agriculture Credit
YTD IN FY18, INDIA HAS DISBURSED $8 BILLION THROUGH 461 SCHEMES TO 590 MILLION BENEFICIARIES!
Source: RBI, November 2017

KSNET Summary
• Major value added network with unique focus on SME’s in sophisticated market.
• Well positioned to weather the current regulatory headwinds with strong balance sheet and cash generation.
• New products such as working capital finance and cryptocurrency processing will re-accelarate growth.
• Valuation on stand-alone basis clearly demonstrates the undervaluation of the Net1 group

India Summary
• Net1 is now established in India with core infrastructure in place, and market recognition is increasing.
• Short-term: scale up existing virtual card and ACS projects
• Medium-term: introduce new products and start owning more of the value chain
• Long-term: establish proof-of-concept to address large rural and government opportunity through UEPS

Q&A

INTERNATIONAL PAYMENTS
Series of Targeted Investments to Build an International Payments Group
• Increasing breadth of services;

• Increasing international reach;
• Increasing processing volumes
• NET1 have invested to
gain access to international
payments as wells as
regulatory licenses including
SWIFT membership
Look and feel
Bank Frick
• In Europe, customers are
engaged through Entities
Strategic
with Regulated E-Money
Investment
UK AEMI License & International Bank service Institution licenses from the
SWIFT membership Crypto Friendly
FCA (UK) and MFSA (Malta)
MasterPayment C4U Malta
Acquisition Malta AEMI License • With the recent investment
Multiple EU facing in Bank Frick, NET1 have the
payment options T24 Mauritius ability to deliver a wider line
Payment Intermediary of innovative products and
Acquisition License services
Multiple International
payment options
2015 2016 2017
NET1 International Payments Group (IPG) Overview
Enschede & Munich
Munich
Maryland London
Oregon (AWS) Zurich Vienna
Gibraltar Malta China
Virginia (AWS)
Hong Kong
Offices Singapore
Service Entities
Hosting Colocations Mauritius
Pretoria Sydney

The IPG offer a Compelling Suite of Payments Products
PRODUCT SERVICE DESCRIPTION MARKET SERVED VALUE CREATED
• Debits and Credits to and from US bank accounts - • USA based merchants
ACH • Enable payments by US consumers
B2B, B2C, C2B (NACHA) • White-label to other PSP’s
• Credit and debit card processing through banking

• A single integration to get access to all
CARD partnerships • Merchants in the EEA
payments options
PROCESSING • Plus multiple Alternative on-line Payment options • White-label to other PSP’s
• Single settlement for all payments
methods via 3rd parties
• EU based merchants • Opening regulated SEPA payments

SEPA • Debits and Credits to and from EU bank accounts -
network to technology and sales
PAYMENTS B2B, B2C, C2B • White-label to other PSP’s organizations
• Allowing merchants outside China to accept • International Businesses

CHINA • Access to massive China customer base
payments from Chines nationals • Direct to merchants
PAYMENTS • Differentiator to other PSPs
• CUP, AliPay, WeChatPay • White-label to other PSPs
• Program manager for white-label card through • Direct to merchants

PREPAID CARD technology and issuing partner • Distributing funds to consumers,
• White-label to other PSPs
ISSUING partners, suppliers, workers quickly
• Issue own branded card to consumers • High net worth individuals

Investments Provide A Formidable Foundation For Growth
Global Reach TECHNOLOGY
13 office or service locations globally • Card processing gateways
• ACH processing gateway
• SEPA processing gateway
• Pre-paid card Platform
(PCI level 1 compliant, inhouse developed
and supported)
PARTNERSHIPS
• Bank Frick – Card Acquiring, issuing and
Banking services PEOPLE
• Local China partners for CUP, AliPay & • 100s years combined leadership experience
WeChat • Extensive senior industry network
• NACHA member ODFI Bank partners for • Local and global experts
USA ACH • Entrepreneurial ethos
• Cashflows (UK) and PSI Pay – MasterCard
and Visa Prepaid card Issuing
REGULATORY COMPLIANCE
• FCA Licensed AEMI (UK)
• MFA Licensed AEMI (Malta) “Brexit proof”
• PMI (Mauritius)
• Member of SWIFT
Very Strong Worldwide Leadership Team In Place To Grow The Business
Philip Meyer Martin Prout John Yeomans Christian Mangold Stephan Voigt Grace Lam Ernest Lau
MD NET1 Intl. DB Director and MD Director T24 UK Sales Director & MD IT Director Europe Payments Director IT Director APAC
Payments Group of T24 UK of Masterpayment APAC
Erik Håkans
Strategy & Innovation
Director Gibraltar
Singapore
Karl MacGregor Christoff Fourie Detlev Meyer
Growth & Innovation ACH Director CEO Masterpayment
Consultant Financial Services Mauritius
Malta (C4U)
Pretoria Sydney

Processing Volumes ~US$1.4bn Per Year With Significant Upside
NET1 International Payments Volumes By Quarter (US$m)
Continued volume growth forecast

Prepaid & SEPA 385
driven by combination of:
ACH 359
339
Credit Card T24 • Strong underlying growth in
Credit Card MP payments volumes (see next
273
China Processing slide)
Look and feel 231 +125%
220
• Improved cross-selling of
190
payments products to global
160 159 customer base
• Introduction of new products

including cryptocurrency
related payments services
2015/16 2015/16 2015/16 2015/16 2016/17 2016/17 2016/17 2016/17 2017/18

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Note: Masterpayment credit card volumes converted from Euros to US$ at constant exchange rate of 1 Euro = 0.88 US$

Strong Underlying Growth In Payments Volumes Underpins Value Case
Three compelling trends are driving rapid market growth:
Global E-Commerce, US$bn

• Steady GDP growth in emerging markets
GLOBAL E-
4500
COMMERCE • Increasing desktop and mobile broadband adoptions (99% OECD) 4000
GROWTH
• Cross-border trade booming (66% consumers) - FX 3500
3000
2500
NEW • Consumerized platforms and software driving new propositions 2000
TECHNOLOGY 1500
• Emerging technology standards e.g. digital wallets, blockchain etc.
& 1000
INNOVATION • Open APIs extending collaboration 500
0
2016 2017 2018 2019 2020
• De-risking entry to new markets
PAYMENT
MARKET • Facilitating new products and services (SEPA) 26% OF THE WORLD SHOPS ONLINE.
REGULATION SPEND GROWING ~25% PER YEAR
• Creating barriers for smaller and slower competitors

Compelling Value Proposition in International Payments
ACCESSING A
80% 85%
MAJORITY OF 70%
ON-LINE CONSUMERS
SIMPLIFYING PAYMENTS POWERING GLOBAL REACH INNOVATING IN FINTECH
• Bridging traditional gaps between • Using financial regulation to access • Customer and market insight driven
banking, acquiring and issuing markets and customers product development
• Accelerating access to payment • Driving access to consumers in • Deep ecosystem integration and
services for B2B & B2C businesses Europe, China and the US collaboration
• Reducing complexity and overheads • Robust risk appetite for new • Deep payment expertise across the
for cross-border trade industries and markets business and globe
• Providing B2B and B2C businesses • Forming partnerships with customers
with access to developing markets and influencers to drive change
and territories
% of on-line consumers accessible by available payment methods

Vision And Strategy Overview
TO BE A LEADING DIGITAL PAYMENT SREVICE PROVIDER, BY LEVERAGING OUR INTERNATIONAL REACH, OUR
WEALTH OF PAYMENT OPTION, OUR REGULATORY FOOTPRINT AND CUSTOM TECHNOLOGY TO SERVE ALL
FACCETS OF THE PAYMENTS AND ECOMMERCE VALUE CHAIN
TECHNOLOGY
Restructure and consolidate to rapidly

SHORT-TERM
FOCUS
improve business profitability and
sustainability (revenue growth & cost cutting)
MEDIUM-TERM New markets and products to drive step-

FOCUS change growth PARTNERSHIPS PEOPLE
LONG-TERM Leverage disruptive technologies to drive

FOCUS sustainable competitive advantage
REGULATORY COMPLIANCE

Short-Term Focus On Driving Revenue Growth In Three Key Areas
GROWING MERCHANT SERVICES NEW PRODUCTS CHINA & NEW MARKETS
• TARGET Under-served mid-market • TARGET Growing business models, e.g. • TARGET International businesses selling
retailers and new industry sectors marketplaces and cryptocurrencies. to Chinese consumers AND International
• HOW Targeted, proposition-based selling • HOW Using our licenses, Bank Frick and businesses paying Chinese suppliers
for existing payment products: Group technology, expand services for: • HOW Proving the need for China
• Cross-sell all services to existing • Real time bank transfers (SEPA) payment methods:
customers • Card Issuing and Digital wallets • China Union Pay
• New segments with complex needs, • International remittance • AliPay
e.g. Crypto and regulated sectors • Banking as a Service • WeChatPay
• Subscription and recurring services
$16bn $4trn $30bn
Processor revenues in Europe 2016 Prepaid card market size 2016 Cross-border e-commerce

Taskforce Established To Accelerate Cryptocurrency Product Growth
September Bank Frick start issuing crypto currency investment certificates
2017 “NET1 recognises the importance and
disruptive power of blockchain
NET1 IPG pen deal with largest EU crypto currency exchange –
November technologies and cryptocurrencies
Bitstamp and we are focused on incorporating
2017
these in our product offering and
NET1 IPG start accepting Crypto Ccurrency for online payments being a first mover/early adopter!”
December
2017 KS Net start accepting Crypto Currency for online payments
• Net1 IPG to launch a prepaid card issuing solution

for crypto currency exchange pay-outs in
collaboration with Bank Frick
• NET1 IPG Blockchain Division established with Total Cryptocurrency Market Capitalization
mandated to utilize blockchain to leverage the
assets ands licences of the Net1 Group to disrupt $200bn
the payment space:
Q1 2018
– Crypto acceptance at retail and ATM
– Smart contacts for working capital finance $100bn
and insurance
– Establish partnerships with financial
services ICO companies for new products Jan Mar May Jul Sep Nov
‘17 ‘17 ‘17 ‘17 ‘17 ‘17
– Atomic Swap development

Differentiated Strategy And Significant Growth Upside
Broad
NET1 International Payments Group is differentiated
from key competitors by:
International
SERVICES OFFERING
• Providing a global payment reach with multiple Payments Group
payment products
• Combining this with regulated entities in key

territories, banking services via Bank Frick, with
remittance and card issuing capability
• Focusing on high-growth markets including mid-

sized customers
Narrow
• Emphasizing innovation and adaptiveness
Local INTERNATIONAL REACH Global
BUSINESS MODEL PROVIDES SIGNIFICANT OPERATIONAL LEVERAGE – CAN SCALE RAPIDLY WITHOUT ADDITIONAL INVESTMENT

International Payments Group Summary
• Key acquisitions and investments that Net1 has made, created the foundation for the formation of a truly
International Payment Group (IPG)
• As one group, and by leveraging its existing payment options, the IPG can now cross sell its payment
products internationally, creating immediate growth
• Building on its relationship with Bank Frick, and by utilizing its licences (AEMI Licence in the UK, AEMI Licence
in the EU, PI Licence in Mauritius, TPPPA membership and SOC1 Type II compliancy in the USA), the IPG can
create innovative new products in the Prepaid cards and payments space to facilitate future growth
• By embracing Crypto Currencies and Block Chain Technologies and having access to Bank Frick, with its
progressive stance towards Crypto currencies, paves the way for the IPG to leverage such technologies as the
new wave in the payments space

Q&A

INVESTMENT SUMMARY
$1 = ZAR 14
Long-Term Growth and Profitability
Growth in Revenue and EBITDA since 2004.
Revenue EBITDA
R9
R 2.5
R8
R7 R 2.0
ZAR BILLIONS
ZAR BILLIONS
R6
R5 R 1.5
R4
R 1.0
R3
R2
R 0.5
R1
R0 R 0.0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Net1 has grown ZAR-based revenue at a EBITDA* has grown at 16% CAGR over
19% CAGR over the past 13 years. the past 13 years.
* EBITDA is adjusted for non-recurring items and transaction related costs

Revenue Growth By Segment
Const. currency SATP revenue USD ITP revenue Const. currency FIAT revenue
R 4.0 $200 R 4.0
R 3.39 $177 R 3.59
R 3.5 $180 $165 $170
R 3.06 R 3.5 R 3.21
$160 $153 R 3.12
R 3.0
ZAR BILLIONS
ZAR BILLIONS
R 2.72 R 2.70 $136 R 3.0
USD MILLIONS
$140
R 2.5 R 2.5
R 2.11 $120 R 2.16
R 2.0 $100 R 2.0
R 1.5 $80 R 1.5

R 0.88 $60 $46 R 0.94
R 1.0 R 1.0 R 0.72
29% (1%) 13% 11%
$40
R 0.5 R 0.5 129% 44% 15% (10%)
$20 12% 8% 3% 4%
R 0.0 R 0.0
$0
2013 2014 2015 2016 2017 Q1 2018 2013 2014 2015 2016 2017 Q1 2018
2013 2014 2015 2016 2017 Q1 2018
SATP constant currency ITP USD revenue CAGR FIAT constant currency revenue CAGR
revenue CAGR was 13% was 7% from 2013 to 2017 was 36% from 2013 to 2017
from 2013 to 2017
Growth in MP/T24 offset by regulatory In FY17, growth in Financial services offset
impact in Korea by decline in prepaid airtime/electricity and
fewer ad-hoc hardware sales
SATP = South African Transaction Processing ITP = International Transaction Processing FIAT = Financial Inclusion and Applied Technologies

Operating Income And Margin By Segment
Const. currency SATP operating USD ITP operating income Const. currency FIAT operating income
income $30,000 R 1,000
R 1,000 $26,805
R 831
R 808 $25,000 $23,389 R 791 R 787
$21,952 R 800
R 800 R 739
USD THOUSANDS
R 638
ZAR MILLIONS
$20,000 R 631
R 583
ZAR MILLIONS
R 600 R 600
R 501
$15,000 $14,208 $13,705
R 400
R 400
23% 22% 24% 24% $10,000
R 200 R 163
53% 29% 27% 22% 24%
10% 14% 16% 14% 8% $5,316 R 184
-R 186 19% R 200
$5,000
R0
(9%) 12% 26%
-R 200 $0 R0
2013 2014 2015 2016 2017 Q1 2018
2013 2014 2015 2016 2017 Q1 2018 2013 2014 2015 2016 2017 Q1 2018
Segment margin

Cash Flow and Balance Sheet Snapshot
Q1 2018 2017 2016 2015 2014 2013
USD in 000’s USD in 000’s USD in 000’s USD in 000’s USD in 000’s USD in 000’s
Adjusted net cash provided by operating activities 28,135 113,337 116,552 135,258 37,145 55,917
Net cash used in investing activities (225,006) (52,133) (59,120) (46,913) (20,290) (23,832)
Adjusted Net cash generated from (used in) financing activities 80,619 (37,645) 67,009 (17,086) (14,728) (34,386)
USD (Millions) June 30, 2017 Sept 30, 2017

Cash $ 258.5 $ 138.4
Investments and Equity Accounted Investments 52.0 269.0
Total Assets 1,450.8 1,343.3
Total Equity 708.0 714.2
Total Debt 16.2 94.2
Book Value / Share $ 12.51 $ 12.59
Net Cash / Share $ 4.30 $ 0.78
Debt / Equity 0.02 0.13
Major cash outflows post Sep 30: Bank Frick Investment & Korea debt repayment.

Cash and Debt Movement - Sep 30 2017
A closer look at the movement of cash and debt at September 30 2017.
$138m CASH $16m Oct debt payment $16m South Korea $94m DEBT
$41m investment
in 30% of Bank
Frick in Oct
$81m available $78m
South Africa
Repay South Korean Debt Bank Frick Available South Africa Existing
Valuation Review
TANGIBLE
NET ASSET HIGH MID LOW
VALUE
$m $m $m $m
Sum Parts SATP ITP FIAT Total
EBITDA valuation: operating segments
Valuation $m $m $m $m SATP 511 320 192
Operating income 59 14 58 131 ITP 491 386 281
Depreciation and FIAT 533 355 178
5 21 1 27
amortization Operating segments: 1 535 1 061 650
EBITDA 64 35 59 158
EBITDA MULTIPLE Investments
High 8x 14x 9x Cell C 222 185 147
DNI 70 70 70
Mid 5x 11x 6x
Finbond 49 49 19
Low 3x 8x 3x Bank Frick 41 41 41
MobiKwik 39 39 26
Investments: 421 384 303
VALUATION
High $511 $491 $533 $1,535 September 2017 net debt 44 44 44
Mid $320 $386 $355 $1,061 Less paid for Bank Frick -41 -41 -41
Low $192 $281 $178 $650 Net cash 3 3 3
Valuation $497 $1,956 $1,445 $953

Shares in issue 56,928 56,928 56,928 56,928
$ value per share $8.73 $34.37 $25.38 $16.74
Fiscal 2018 Outlook and 1Q Overview
2018 GUIDANCE - Fundamental EPS of at least $1.61, assuming the following:
- Modest dilution from Cell C/DNI transactions
- USD/ZAR rate of 13.62
- 56.6 million shares and tax rate of 34-36%
- No significant disruptions in any of our key business units
Overview of 1Q 2018:
FUNDAMENTAL EPS SATP ITP FIAT
1Q 2018 Fundamental EPS SATP – steady growth. ITP – expect Korea to FIAT – expect growth in
of $0.43 Drivers - further ATM decline mid-single digit % in financial services.
network expansion and more 2018 and return to positive Prepaid services expected to
transacting consumers growth in 2019. decline 10-15% in 2018. New
including at EasyPay (POS). ROW revenue should growth products rolled out through
though continued Cell C/DNI will provide
investments to continue incremental growth
weighing on segment
margins in 2018.
Vision 2020
By Fiscal 2020, we believe the initiatives we are focusing on will help us achieve the following targets:
REVENUE >US$800m EPS > US$2.50 INTERNATIONAL REVENUE >40% TOTAL
800 $2.50 40%
+33% +44%
600 $1.74
29%
2017 2020 Target 2017 2020 Target 2017 2020 Target
All figures assuming constant FX using FY 17 rate of ZAR 13.62/$1 and FY 17 share count

Summary
• Net1 has demonstrated resilient growth over the last 12 years – we have succeeded where few choose to tread.
• Demonstrable track record of introducing disruptive technologies that rapidly become significant contributors to
revenue and operating profit through multiplier-effect.
• The sum of the parts of our business suggests a far more valuable company than our current market cap implies:
∑(Unique technology, distinctive market focus, expert team, unrivalled logistical abilities, strong balance sheet, cash
generation, vertical integration through smart investments) > current market value!
• We will accelerate our mission to bring financial inclusion to billions of neglected people around the world without
compromising shareholder returns.
Q&A

Annexure 1 - Reconciliation of Non-GAAP Measures
Earnings and earnings per share.
FISCAL
2013 2014 2015 2016 2017 Q1 2018
$ '000 $ '000 $ '000 $ '000 $ '000 $ '000
Net income attributable to Net1 (GAAP) 12,977 70,111 94,735 82,454 72,954 19,483
Amortisation of intangible assets, net of tax 13,679 12,490 11,263 8,413 10,491 2,131
Transaction costs 69 77 - 1,018 3,347 1,329
Stock-based charge 3,907 2,914 3,195 3,598 1,982 827
Amortisation of intangible assets, net of tax - equity accounted investments - - - - - 543
Facility fees for debt 302 657 208 138 1,294 133
Former CEO separation payment, net of tax - - - - 5,200 -
Refund related to litigation finalized in Korea, net of tax - - (1,354) - (643) -
US government investigations-related and US lawsuit expenses 3,888 2,579 158 133 96 -
Gain resulting from acquisition of T24 - - - (1,909) - -
Gain resulting from change in accounting for Finbond, net of tax - - - (1,732) - -
Equity Instruments charge - 11,268 - - - -
Sale of MK and NUETS business/ Corp Activity - 443 - - - -
Fundamental net income (Non-GAAP) 34,822 100,539 108,205 92,113 94,721 24,446

EBITDA and adjusted EBITDA
FISCAL
2013 2014 2015 2016 2017 Q1 2018
$ '000 $ '000 $ '000 $ '000 $ '000 $ '000
Net income attributable to Net1 (GAAP) 12,977 70,111 94,735 82,454 72,954 19,483
Non-controlling interest (3) (50) 1,999 2,342 1,694 244
Earnings from equity-accounted investments (351) (298) (452) (639) (2,664) (2,075)
Interest income (12,083) (14,817) (16,355) (15,292) (20,897) (5,044)
Interest expense 7,966 7,473 4,456 3,423 3,484 2,121
Income tax expense 14,656 39,379 44,136 42,080 42,472 10,277
Depreciation and amortization 40,599 40,286 40,685 40,394 41,378 8,966
EBITDA (Non-GAAP) 63,761 142,084 169,204 154,762 138,421 33,972
Adjusted for:
Transaction costs 69 77 - 1,018 3,347 1,486
Stock-based compensation reversal and related to former CEO (in 2017) - - - - 250 -
Former CEO separation payment - - - - 8,000 -
Adjusted EBITDA (Non-GAAP) 63,830 142,161 169,204 155,780 150,018 35,458

Cash flow and adjusted cash flow
Q1 2018 2017 2016 2015 2014 2013

USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000 USD ‘000
Net cash (used in) provided by operating activities (GAAP) (793) 97,161 116,552 135,258 37,145 55,917
Net funding to grow Working Capital Finance book 28,928 16,176 - - - -
Adjusted net cash provided by operating activities (Non-GAAP) 28,135 113,337 116,552 135,258 37,145 55,917
Cash flows used in investing activities (GAAP) (12,357) (114,071) (5,756) (80,783) (9,237) (457,875)
Movement in settlement assets (212,649) 61,938 (53,364) 33,870 (11,053) 434,043
Adjusted net cash used in investing activities (Non-GAAP) (225,006) (52,133) (59,120) (46,913) (20,290) (23,832)
Cash flows provided by (used in) financing activities (GAAP) (103,102) 40,469 13,645 16,784 (25,781) 399,657
Movement in settlement liabilities 212,649 (61,938) 53,364 (33,870) 11,053 (434,043)
Net funding to grow Working Capital Finance book (28,928) (16,176) - - - -
Adjusted net cash provided by (used in) financing activities (Non-GAAP) 80,619 (37,645) 67,009 (17,086) (14,728) (34,386)

Be included.

Net1 Investor Day Presentation122017 PDF

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Net1 Investor Day Presentation122017 PDF

Hochgeladen von

Copyright:

Verfügbare Formate

INVESTOR DAY

DECEMBER 2017 NET1 3

Overview and Net1 International International Investment

DECEMBER 2017 NET1 4

DECEMBER 2017 NET1 5

DECEMBER 2017 NET1 7

GLOBAL CUSTOMER BASE WITH 30+ MILLION CARDHOLDERS IN OVER 10 COUNTRIES

DECEMBER 2017 NET1 8

Purchasing Power Parity in US$

$25,000+ 2BN PEOPLE

Net1 is vertically integrated:

DECEMBER 2017 NET1 10

NET1 STRATEGY Innovative global culture

Profitable business development

Efficient logistical support

Financially inclusive services

DECEMBER 2017 NET1 11

1997 2001 2005 2009 2013 2017

DECEMBER 2017 NET1 13

Ghana National switch implemented with 21 banks on behalf

Zimbabwe UEPS pilot switch implemented on behalf of the World

South Africa The UEPS/EMV technology has been deployed on an

DECEMBER 2017 NET1 14

DECEMBER 2017 NET1 15

Hardware Solutions • Integration (CUP, Alipay, WeChat Pay)

• SIM mask development

DECEMBER 2017 NET1 16

DECEMBER 2017 NET1 17

• Tokenization of prepaid electricity meters including • Development of a fully fledged independent

• Incorporating Crypto-currencies to payment • Adding Block chain and crypto-currency

DECEMBER 2017 NET1 18

• Financial Inclusion in South Africa – EPE, Cell C, DNI

DECEMBER 2017 NET1 19

DECEMBER 2017 NET1 20

Overview and Net1 International International Investment

DECEMBER 2017 NET1 21

DECEMBER 2017 NET1 23

Lifestyle Payment New

Lifestyle Payment New

• 10,000+ Pay points

• 3,800+ experienced staff

• Exceptionally strong management team including 100 people with

DECEMBER 2017 NET1 26

UNIQUE COMPETITIVE ADVANTAGE – OWNING THE LAST MILE

• Face to face access to an untapped customer base 3,800

• Continuous technological innovations –

DECEMBER 2017 NET1 28

1. Market has evolved from “banking” platform 600

2. Customer centric and service delivery is core

Merchant 10,000 Pay

INTEGRATED INTO LIFESTYLE PRODUCT OFFERINGS

DECEMBER 2017 NET1 29

Lifestyle Payment New

2. LOAN PRODUCT 150 Fixed 10,000 Pay

ATM Infra- Mobile

DECEMBER 2017 NET1 31

3. Current offering includes:

4. 1 million people utilise our ATM infrastructure ATM Infra- Mobile

DECEMBER 2017 NET1 32

Lifestyle Payment New

• Investments to date provide unique and unrivalled platform

• Business model is globally scalable FIHRST Crypto

DECEMBER 2017 NET1 34