Q2 2019 Investor PresentationInvestor PresentationInvestor PresentationInvestor Presentation

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Safe Harbor Statement

2

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 isaccompanied by meaningful cautionary statements identifying important factors that couldcause 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 othersimilar expressions are intended to identify forward-looking statements.

All of these forward-looking statements are based on estimates and assumptions by ourmanagement 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 ourbusiness, industry, strategy or actual results to differ materially from the forward-lookingstatements.

These risks and uncertainties may include those discussed in the Company’s annual report onForm 10-K for the year ended June 30, 2018, on file with the Securities and ExchangeCommission, and other factors which may not be known to us. Any forward-looking statementspeaks 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 asrequired by law.

Unless specifically noted otherwise within this presentation, the following terms are hereby defined asfollows:

Constant Currency: We analyze our results of operations both in U.S. dollars, as presented in theconsolidated financial statements, and supplementally in ZAR, because ZAR is the functional currencyof the entities which contribute the majority of our profits and is the currency in which the majority ofour transactions are initially incurred and measured. Due to the significant impact of currencyfluctuations between the U.S. dollar and ZAR on our reported results and because we use the U.S.dollar as our reporting currency, we believe that the supplemental presentation of our results ofoperations in ZAR is useful to investors to understand the changes in the underlying trends of ourbusiness. The use of constant currency is a non-GAAP measure.

Adjusted EBITDA : Net (loss) income before non-controlling interests, earnings from equity accountedinvestments, interest, taxation, depreciation and amortization expenses (“EBITDA”) adjusted forimpairment losses, transaction or financing related charges, and other non-operating or non-recurringitems that are considered expenses or income under U.S. GAAP. EBITDA and adjusted EBITDA are non-GAAP measures and represent a performance measure that is not intended to represent a liquiditymeasure.

Reconciliation of US GAAP measures to EBITDA, Adjusted EBITDA, Fundamental (Loss) Earnings and(Loss) Earnings Per Share: The reconciliation is included in the attached supplemental data.

The Company does not provide reconciliation of its forward-looking non-GAAP measures to GAAP due tothe inherent difficulty in forecasting and quantifying certain amounts that are necessary for GAAP andthe related GAAP to non-GAAP reconciliation, including adjustments, that could be made for currencyexchange rate fluctuations and other charges reflected in the Company’s reconciliation of historicnumbers, the amount of which, based on historical experience, could be significant.

Defined Terms

3

Performance SummaryCompany highlights include:

• Progress on turning Korea around and restructuring of the International Payments Group

First Half Fiscal 2019 financial summary:

• Revenue of $223 million and Fundamental loss per share of $0.86

• Fundamental loss per share includes a $0.82 of non-cash adjustments including a $0.49 allowance for doubtful loans receivable, $0.28 Cell C fair value loss adjustment and $0.05 Cedar Cellular note impairment loss

Second Quarter Fiscal 2019 financial summary:

• Revenue of $97 million and Fundamental loss per share of $0.88

• Fundamental loss per share includes a $0.74 of non-cash adjustments including a $0.41 allowance for doubtful loans receivable, $0.28 Cell C fair value loss adjustment and $0.05 Cedar Cellular note impairment loss

Investment Portfolio performance:

• Cell C and Bank Frick performed in line with expectations

• Cell C full year 2018 results expected towards end February 2019 and Finbond year ended February 2019 results expected in May 2019

4

FINANCIAL HIGHLIGHTSSecond Quarter 2019

Q2 2019 Financial Report

6

First Half F2019 Financial Highlights

• Revenue - $223 million• 26% decrease from $301 million in YTD 2018• 21% decrease on a constant currency basis

• Adjusted Negative EBITDA - ($11) million

• H1 2018 EBITDA $68 million

• Fundamental Net Loss – ($49) million

• H1 2018 Fundamental net income $47 million

• Fundamental Loss per Share – ($0.86)

• H1 2018 Fundamental EPS $0.83

Note: Adjusted Negative EBITDA is adjusted for transaction related costs and otheradjustments. Fundamental EPS also includes these and other adjustments; seereconciliations in Appendix A for additional details.

Q2 2019 Financial Report

7

Q2 2019 Financial Highlights

• Revenue - $97 million• 35% decrease from $148 million in Q2 2018• 31% decrease on a constant currency basis

• Adjusted Negative EBITDA - ($25) million

• Q2 2018 EBITDA $33 million

• Fundamental Net loss – ($49) million

• Q2 2018 Fundamental net income $22 million

• Fundamental Loss per share – ($0.88)

• Q2 2018 FEPS $0.39

Note: Adjusted EBITDA is adjusted for transaction related costs and other adjustments.Fundamental EPS also includes these and other adjustments; see reconciliations inAppendix A for additional details.

Q2 2019 Financial ReportBusiness Segment Results – Second quarter

• SATP constant currency revenue declined 64%• Expiration of SASSA contract and impact of

auto-migration of EPE customers

• ITP USD revenue declined 14%• Lower contributions from IPG, including lower

crypto-processing compared with Q2 2018

• FIAT constant currency revenue declined 25%• Impact of auto-migration of EPE customers,

offset by inclusion of DNI

-

200

400

600

800

1 000

2017 2018 2019

R 835 R 877

R 315

ZA

R M

illions

Q2 constant currency SATP Revenue

-

10

20

30

40

50

60

2017 2018 2019

$ 44 $ 44

$ 38

USD

Millions

Q2 USD ITP Revenue

(14%)

-

200

400

600

800

1 000

2017 2018 2019

R 826 R 740

R 555

ZA

R M

illions

Q2 constant currency FIAT Revenue

5%

(64%)

0%

(25%) (25%)

8

Q2 2019 Financial ReportBusiness Segment Results – First half

USD (Millions)

Revenue Operating (Loss) Income

Operating Margin

F2019 F2018 F2019 F2018 F2019 F2018

SATP% Change*

$ 60(54%)

$ 131 ($ 15)nm

$ 26 (26%) 20%

ITP% Change*

78(14%)

90 (1)nm

0 (2%) 0%

FIAT % Change*

92(15%)

108 (7)nm

27 (8%) 25%

Sub-total % Change*

229(30%)

329 (24)nm

53 (10%) 16%

Inter-segment Eliminations% Change*

(6)(78%)

(28) (18)60%

(11) nm nm

Total% Change*

$ 223(26%)

$ 301 ($ 42)nm

$ 41 (19%) 14%

9*% change in constant currency

Q2 2019 Financial ReportBusiness Segment Results – Second quarter

USD (Millions)

Revenue Operating (Loss) Income

Operating Margin

Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018

SATP% Change*

$ 22(64%)

$ 64 ($ 12)nm

$ 13 (52%) 21%

ITP% Change*

38(10%)

44 (4)(281%)

(5) (11%) (11%)

FIAT % Change*

3925%

54 (19)nm

13 (48%) 24%

Sub-total % Change*

99(36%)

162 (34)nm

21 (35%) 13%

Inter-segment Eliminations% Change*

(2)(87%)

(14) (9)49%

(5) nm nm

Total% Change*

$ 97(31%)

$ 148 ($ 43)nm

$ 16 (44%) 11%

10*% change in constant currency

Q2 2019 Financial ReportBalance Sheet Overview

USD (Millions) Dec 31, 2018 Jun 30, 2018

Cash $ 70 $ 90

Investments and Equity Accounted Investments $ 279 $ 299

Total Assets $ 1,080 $ 1,219

Total Equity $ 652 $ 738

Total Debt $ 35 $ 50

Book Value / Share $ 11.48 $ 13.03

Net Cash / Share $ 0.61 $ 0.70

Debt / Equity 0.05 0.07

11

12

% held Balance Sheet Value(Dec 2018)

Equity Accounted:

Bank Frick 35% $46 million >$46 million (1)

Finbond (JSE listed) 29% $37 million $100 million (2)

OneFi 25% $8 million $25 - $35 million (3)

Investments:

Cell C 15% $149 million $149 million

MobiKwik 12% $27 million $35 million (4)

TOTAL $268 million >$355 million (5)

1) Based on carrying value2) Dec 31, 2018 value - 268m shares at R5.35 at $1/R14.403) Based on peer analysis of other neobanks4) 12% of $290m (MobiKwik valuation at Bajaj investment)5) Compared with Net1 market cap of $193 million (56.7M shares x $3.41)Values at carrying value unless stated otherwise

Q2 2019 Financial ReportKey Investments

BUSINESS OVERVIEWSOUTH AFRICAN TRANSACTION PROCESSING

Second Quarter 2019

SATP Segment Highlights

14

Q2 2019 Financial Highlights

• Revenue - $22 million• 66% decrease from $64 million in Q2 2018• 64% decrease on a constant currency basis• Lower transaction revenue from fewer EPE accounts and

SASSA Grindrod accounts• Expiration of contract in CPS at end of Q1 2019, no revenue

recorded in Q2 2019.

• Operating Loss – ($12) million

• Higher cost of carrying CPS cost base without commensurate volume

• Lower number of EPE and SASSA Grindrod accounts

SATP Segment Highlights

15

Q2 2019 Key Trends

EasyPay

Number of EasyPay Transactions

115

120

125

130

135

140

145

150

Q2FY19Q1FY19Q4FY18Q3FY18Q2FY18Q1FY18Q4FY17Q3FY17Q2FY17

Millions

Total

BUSINESS OVERVIEWINTERNATIONAL TRANSACTION PROCESSING

Second Quarter 2019

ITP Segment Highlights

17

Q2 2019 Financial Highlights

• Revenue - $38 million• 10% decrease compared to $44 million in Q1 2018• Contraction in IPG processing activities compared to Q2 2018• Q2 2018 included significant surge in crypto-currency

processing volumes

• Operating loss – ($4) million

• Includes $7 million goodwill impairment related to IPG• Excluding non-cash charges, ITP operating income and margin

improved in Q2 2019 compared to Q2 2018, driven by improved contribution from KSNET

ITP Segment HighlightsQ2 2019 Key Trends

• South Korea and Rest of the World (ROW) Growth• South Korea revenue down 3% in KRW compared to Q2 2018• ROW revenue impacted by contraction in IPG processing activities,

specifically the surge in crypto-currency processing activities in Q2 2018

18

-

10

20

30

40

50

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Revenue KRW Billions

-

1

2

3

4

5

6

7

8

9

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Revenue ROW (excl Korea) - USD Millions

IPG Consolidation and Expansion

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Q2 2019 PROGRESS UPDATES:

• Consolidation of various business units largely complete with appropriate management structure,

• China and SEPA processing volumes improved in Q2 2019 compared to Q2 2018

0

20

40

60

80

100

120

Card Processing Volume ($Mil)

0

2

4

6

8

10

12

14

16

SEPA Processing Volume ($Mil)

02468

101214161820

China Processing Volume ($Mil)

IPG PLAYS AN INTEGRAL ROLE IN PROVIDING END-TO-END SOLUTIONS FOR ISSUING, ACQUIRING AND PROCESSING GLOBALLY.

BUSINESS OVERVIEWFINANCIAL INCLUSION & APPLIED TECHNOLOGIES

Second Quarter 2019

FIAT Segment Highlights

21

Q2 2019 Financial Highlights

• Revenue - $39 million• 28% decrease from $54 million in Q2 2018• 25% decrease on a constant currency basis

• Operating Loss - $19 million

• Operating income $13 million in Q2 2018• Includes $23 million allowance for doubtful finance loans

receivable

• DNI included in Q2 2019 but not in 2018

• EPE Accounts

• Active accounts have reduced to 1.1 million in December due to combination of churn and auto-migration by SASSA

• MoneyLine

• Loan book adversely impacted by non-funding of EPE accounts due to SASSA’s auto-migration of EPE customers to SAPO

FIAT Segment Highlights

22

Q2 2019 Key Trends

# of EPE Accounts Receiving Grants Value of Loans Outstanding

Number of Billed SmartLife Policies

0.0

0.5

1.0

1.5

2.0

Q2FY19Q1FY19Q4FY18Q3FY18Q2FY18Q1FY18

Mil

lio

ns

As of quarter ended

0

200

400

600

800

1 000

1 200

1 400

Mil

lio

ns

Outstanding Capital Deferred Service Fees

0

100 000

200 000

300 000

400 000

500 000

Appendix A

Reconciliation of non-GAAP measures

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Second quarter – Fundamental Net (Loss) Income and Negative EBITDA

$ '000 EPS, basic $ '000 EPS, basic

Fundamental net (loss) income (Non-GAAP) (49,966) (0.88) 22,405 0.39

Impairment loss (8,191) -

Amortisation of intangible assets, net of tax (4,510) (2,199)

Amortization, net related to non-controlling interest 909 -

Stock-based charge(2) (598) (608)

Transaction costs (300) (611)

Amortisation of intangible assets, net of tax - equity accounted investments (1,217) (951)

Facility fee (68) (214)

Non-recurring Mastertrading allowance for doubtful accounts - (7,803)

Change in US tax rate - (860)

Profit on sale of Xeo - 463

Net (loss) income attributable to net1 (GAAP) (63,941) (1.13) 9,622 0.17

Change in fair value of equity securities 15,836 -

Non-controlling interest 2,972 357

Loss (Earnings) from equity-accounted investments 1,247 (1,354)

Interest income, net of impairment 331 (4,705)

Interest expense 2,778 2,325

Income tax (benefit) expense (2,298) 10,062

Impairment loss 8,191 -

Depreciation and amortization 9,853 8,723

(Negative) EBITDA (Non-GAAP) (25,031) 25,030

Adjusted for:

Transaction costs 300 611

Non-recurring Mastertrading allowance for doubtful accounts - 7,803

Profit on sale of Xeo - (463)

Adjusted (Negative) EBITDA (Non-GAAP) (24,731) 32,981

Three months ended

Dec-18 Dec-17

Reconciliation of non-GAAP measures

25

First half – Fundamental Net (Loss) Income and Negative EBITDA

$ '000 EPS, basic $ '000 EPS, basic

Fundamental net (loss) income (Non-GAAP) (48,709) (0.86) 46,875 0.83

Impairment loss (9,060) (4,354)

Amortisation of intangible assets, net of tax (8,191) -

Amortization, net related to non-controlling interest 1,815 -

Stock-based charge(2) (1,185) (1,435)

Transaction costs (1,850) (1,940)

Amortisation of intangible assets, net of tax - equity accounted investments (1,805) (1,494)

Facility fee (155) (347)

Non-recurring Mastertrading allowance for doubtful accounts - (7,803)

Change in US tax rate - (860)

Profit on sale of Xeo - 463

Net (loss) income attributable to net1 (GAAP) (69,140) (1.22) 29,105 0.51

Change in fair value of equity securities 15,836 -

Non-controlling interest 3,067 601

Earnings from equity-accounted investments (126) (3,429)

Interest income (1,545) (9,749)

Interest expense 5,537 4,446

Income tax expense 4,192 20,339

Impairment loss 8,191 -

Depreciation and amortization 20,647 17,689

(Negative) EBITDA (Non-GAAP) (13,341) 59,002

Adjusted for:

Transaction costs 1,850 2,097

Non-recurring Mastertrading allowance for doubtful accounts - 7,803

Profit on sale of Xeo - (463)

Adjusted (Negative) EBITDA (Non-GAAP) (11,491) 68,439

Six months ended

Dec-18 Dec-17

Thank you!

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