GlobeNewswire Inc | Sep 13, 2021 04:05PM EDT

September 13, 2021

JOHANNESBURG, South Africa, Sept. 13, 2021 (GLOBE NEWSWIRE) -- Net 1 UEPS Technologies, Inc. (Nasdaq: UEPS; JSE: NT1) today released results for the fourth quarter and year ended June 30, 2021.

Financial Highlights

-- Net increase of approximately 23,000 EasyPay Everywhere (EPE) account holders during Q4 2021, and an additional 61,000 combined in July and August of 2021; -- Non-cash increase of $23.4 million in Q4 2021, before tax effect, in the fair value of investment in MobiKwik; -- At June 30, 2021, unrestricted cash of $199 million and no debt; -- Revenue of $34.5 million in Q4 2021, an increase of 20% from Q3 2021; -- Operating loss of $(13.6) million in Q4 2021; -- GAAP EPS of $0.03 and Fundamental EPS loss of $(0.18) in Q4 2021; and -- Adjusted EBITDA loss of $8.2 million in Q4 2021, a $4.6 million improvement from Q3 2021 following the closure of IPG.

Fiscal Year 2021 was a challenging year for Net 1, South Africa and the global economy - but it has also been a productive period for the company, said Chris Meyer, Group CEO of Net 1. Our core purpose is to improve peoples lives by bringing financial inclusion to South Africas underserved consumers and helping small businesses access the financial services they need to prosper. We believe we have the right team, strategy, technology and operations in place to position the Company to effectively serve the large addressable market in South Africa and provide growth for all stakeholders.

Summary Financial Metrics

Q4 2021 Q4 2020 Q3 2021 Q4 ?21 Q4 Q4 ?21 Q4 ?21 (as vs ?21vs vs vs restated) Q4 ?20 Q3 ?21 Q4 ?20 Q3 ?21 ^(1)(All figuresin USD ?000s USD ?000?s % change in USD except per (except per share data) % change in ZARshare data)Revenue 34,517 24,551 28,828 41 % 20 % 15 % 13 %GAAPoperating (13,600 ) (13,180 ) (14,292 ) 3 % (5 %) (15 %) (10 %)lossAdjustedEBITDA (loss) (8,208 ) (11,868 ) (12,823 ) (31 %) (36 %) (43 %) (39 %)^(2)GAAP earnings(loss) per 0.03 (0.68 ) (0.11 ) nm nm nm nmshare ($)Fundamentalloss per (0.18 ) (0.21 ) (0.24 ) (14 %) (25 %) (30 %) (29 %)share ($)^(2)Fully-dilutedshares 56,937 57,119 56,921 (0 %) 0 % nm nmoutstanding(?000?s)Averageperiod USD/ 14.17 17.28 14.96 (18 %) (5 %) nm nmZAR exchangerate

F2021 F2020 F2021 F2021 (as vs vs restated)^ F2020 F2020 (1)(All figures in USD ?000s except per USD ?000?s % %share data) (except per share data) change change in USD in ZARRevenue 130,786 144,299 (9 %) (19 %)GAAP operating loss (53,872 ) (44,248 ) 22 % 9 %Adjusted EBITDA (loss)^(2) (42,907 ) (29,354 ) 46 % 31 %GAAP earnings (loss) per share ($) (0.67 ) (1.37 ) (51 %) (56 %) Continuing (0.67 ) (1.70 ) (61 %) (65 %) Discontinued - 0.33 nm nmFundamental loss per share ($)^(2) (0.87 ) (1.02 ) (15 %) (24 %)Fully-diluted shares outstanding 56,898 56,764 0 % nm(?000?s)Average period USD/ ZAR exchange 15.72 17.57 (11 %) nmrate

(1) 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support. The financial information for the three and twelve months ended June 30, 2020, has been restated with the effect of decreasing revenue by $1.4 million and $6.7 million, respectively. Refer to Note 1 to our audited consolidated financial statements.

(2) Adjusted EBITDA (loss), fundamental loss and fundamental loss per share are non-GAAP measures and are described below under Use of Non-GAAP MeasuresEBITDA and Adjusted EBITDA, and Fundamental net (loss) income and fundamental (loss) earnings per share. See Attachment B for a reconciliation of GAAP operating loss to EBITDA (loss) and Adjusted EBITDA (loss), and GAAP net income (loss) to fundamental net loss and loss per share.

Business update related to COVID-19 pandemic

Our business has been, and continues to be, impacted by government restrictions and quarantines related to COVID-19. South Africa operates with a five-level COVID-19 alert system, with Level 1 being the least restrictive and Level 5 being the most restrictive. South Africa is currently at adjusted Level 2, and was at adjusted Level 3 until September 12, 2021, which had a limited impact on our businesses during Q4 2021. The South African government commenced its vaccination program in early calendar 2021, with a stated goal of vaccinating 67% of the South African population by the end of the calendar year.

Factors impacting comparability of our Q4 2021 and Q4 2020 results

-- Higher revenue: Our revenues increased 15% in ZAR primarily due to higher volume-driven transaction fees lending revenues and hardware sales, which were partially offset by fewer prepaid airtime sales; -- Ongoing operating losses: Operating loss is comparable with Q4 2020, however with different components. Q4 2021 includes a $4.0 million allowance for doubtful loans receivable from equity-accounted investments and no IPG losses, whilst, Q4 2020 operating losses included the effects of pandemic-related government restrictions in South Africa and an inventory adjustment of $1.3 million as well as IPG losses of $4.3 million. -- Non-cash increase in fair value of MobiKwik: We recorded a non-cash fair value gain during Q4 2021 of $23.4 million related to the change in fair value of MobiKwik; and -- Foreign exchange movements: The U.S. dollar was 18.0% weaker against the ZAR during Q4 2021, which impacted our reported results.

Results of Operations by Segment and Liquidity

Processing

Segment revenue, excluding IPG, was $21.2 million in Q4 2021, up 12% compared with Q4 2020 and up 7% compared with Q3 2021 on a constant currency basis. Excluding IPG, segment revenue increased primarily due to an increase in volume-driven transaction fees due to lower trading activity in Q4, 2020, following government-imposed lockdown restrictions, which was partially offset by fewer prepaid airtime sales and a reduction in volume-driven transaction fees. Excluding IPG, Processings operating loss for Q4 2021, has been impacted by an increase in transaction-based and employee costs, which was partially offset by the lower cost of prepaid airtime sales. Q4 2020 also includes a $1.3 million inventory write-down related to Cell C prepaid airtime. Our operating loss margin (calculated as operating (loss) income divided by revenue) for Q4 2021 and 2020 was (27.3%) and (61.6%), respectively. Excluding IPG, our operating loss margin for the Processing segment was (27.4%) and (37.6%) during Q4 2021 and 2020, respectively. Excluding the Cell C prepaid airtime write-down, our operating loss and operating loss margin for the Processing segment was $(8.8) million and (53.6%), respectively, during Q4 2020.

Financial services

Segment revenue was $10.8 million in Q4 2021, up 1% on a constant currency basis compared with both Q4 2020 and Q3 2021. Segment revenue was affected by higher lending revenue, which was partially offset by lower account fees. The increase in operating loss is primarily due to the lower account fee revenue and the increase in insurance-related claims experienced this quarter attributed to the second wave of the pandemic. Our operating loss margin for Q4 2021 and 2020 was (26.5%) and (11.6%), respectively.

Technology

Segment revenue was $4.9 million in Q4 2021, up 108%, compared with Q4 2020, and up 129% compared with Q3 2021 on a constant currency basis. Segment revenue increased due to a higher volume of hardware sales from one product line compared to the prior period. The operating loss for Q4 2021 was impacted by various non-trading adjustments. Our operating (loss) income margin for the Technology segment was (7.3%) and 7.0% for Q4 2021 and 2020, respectively.

Corporate/eliminations

Our corporate expenses for Q4 2021 were higher than Q4 2020 primarily due to an allowance for doubtful loans receivables of $4.0 million, which was partially offset by the net reversal of stock-based compensation charges of $0.5 million.

Cash flow and liquidity

At June 30, 2021, our cash and cash equivalents were $198.6 million and comprised of U.S. dollar-denominated balances of $169.8 million, ZAR-denominated balances of ZAR 0.4 billion ($26.5 million), and other currency deposits, primarily Botswana pula, of $2.3 million, all amounts translated at exchange rates applicable as of June 30, 2021. The decrease in our unrestricted cash balances from June 30, 2020, was primarily due to the payment of Federal income taxes, weak trading activities and an increase in our lending book, which was partially offset by the receipt of the outstanding proceeds related to the sale of our Korean business, receipt of proceeds related to the disposal of our interest in Bank Frick and the receipt of the outstanding loan related to the disposal of our remaining interest in DNI.

Excluding the impact of income taxes, cash used in operating activities during Q4 2021 was impacted by the cash losses incurred by our operations. Capital expenditures for Q4 2021 and 2020 were $0.3 million and $1.4 million, respectively.

Conference Call

We will host a conference call to review these results on September 14, 2021, at 8:00 a.m. Eastern Time. To participate in the call, dial 1-508-924-4326 (US and Canada), 0333-300-1418 (U.K. only) or 010-201-6800 (South Africa only) ten minutes prior to the start of the call. Callers should request Net1 call upon dial-in. The call will also be webcast on the Net1 homepage, www.net1.com. Please click on the webcast link at least ten minutes prior to the call. A webcast of the call will be available for replay on the Net1 website.

Participants are now able to pre-register for the September 14, 2021, conference call by navigating to https://www.diamondpass.net/9817456. Participants utilizing this pre-registration service will receive their dial-in number upon registration.

Use of Non-GAAP Measures

U.S. securities laws require that when we publish any non-GAAP measures, we disclose the reason for using these non-GAAP measures and provide reconciliations to the most directly comparable GAAP measures. The presentation of EBITDA, adjusted EBITDA, fundamental net (loss) income and fundamental (loss) earnings per share and headline (loss) earnings per share are non-GAAP measures.

EBITDA and adjusted EBITDA

Earnings before interest, tax, depreciation and amortization (EBITDA) is GAAP operating (loss) income adjusted for depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for costs related to acquisitions and transactions consummated or ultimately not pursued and allowances for doubtful loans to equity-accounted investments.

Fundamental net (loss) income and fundamental (loss) earnings per share

Fundamental net (loss) income and (loss) earnings per share is GAAP net (loss) income and (loss) earnings per share adjusted for the amortization of acquisition-related intangible assets (net of deferred taxes), stock-based compensation charges, and unusual non-recurring items, including allowance for doubtful loans to equity-accounted investments, costs related to acquisitions and transactions consummated or ultimately not pursued.

Fundamental net (loss) income and (loss) earnings per share for fiscal 2021 also includes adjustments related to changes in the fair value of equity securities (net of deferred tax), loss on disposal of equity-accounted investments, impairment losses related to our equity-accounted investments and the deferred tax liability reversal related to the impairment of the equity-accounted investment, and fiscal 2020 also includes an termination fee paid to cancel the Bank Frick option, impairment losses related to our equity-accounted investments, the gain related to the disposal of our Korean business, the gain related to the disposal of FIHRST, the loss related to the deconsolidation of CPS, and interest related to SASSA implementation costs refund.

Management believes that the EBITDA, adjusted EBITDA, fundamental net (loss) income and (loss) earnings per share metrics enhance its own evaluation, as well as an investors understanding, of our financial performance. Attachment B presents the reconciliation between GAAP operating income and EBITDA and adjusted EBITDA; and GAAP net (loss) income and (loss) earnings per share and fundamental net (loss) income and (loss) earnings per share.

Headline (loss) earnings per share (H(L)EPS)

The inclusion of H(L)EPS in this press release is a requirement of our listing on the JSE. H(L)EPS basic and diluted is calculated using net (loss) income which has been determined based on GAAP. Accordingly, this may differ to the headline (loss) earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including but not limited to, International Financial Reporting Standards.

H(L)EPS basic and diluted is calculated as GAAP net (loss) income adjusted for the impairment losses related to our equity-accounted investments, loss on disposal of equity-accounted investments, the gain related to the disposal of our Korean business, the gain on disposal of FIHRST, and (profit) loss on sale of property, plant and equipment. Attachment C presents the reconciliation between our net (loss) income used to calculate (loss) earnings per share basic and diluted and HE(L)PS basic and diluted and the calculation of the denominator for headline diluted (loss) earnings per share.

About Net1

Net1 is a leading financial technology company that utilizes its proprietary banking and payment technology to deliver on its mission of financial inclusion through the distribution of low-cost financial and value-added services to underserved consumers and small businesses in Southern Africa, which represents a significant segment of these economies. The Company also provides transaction processing services, including being a payment processor and bill payment platform in South Africa. Net1 leverages its strategic investments to further expand its product offerings or to enter new markets.

Net1 has a primary listing on NASDAQ (NasdaqGS: UEPS) and a secondary listing on the Johannesburg Stock Exchange (JSE: NT1). Visit www.net1.com for additional information about Net1.

Forward-Looking Statements

This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in our filings with the Securities and Exchange Commission. We undertake no obligation to revise any of these statements to reflect future events.

Investor Relations Contact:Dara Dierks Managing Director ICR Email: net1IR@icrinc.com

Media Relations Contact:Bridget von HoldtCo-Market Leader | MD BCWPhone: +27-82-610-0650Email: Bridget.vonholdt@bcw-global.com

NET 1 UEPS TECHNOLOGIES, INC.Condensed Consolidated Statements of Operations Unaudited (A) Three months ended Year ended June 30, June 30, 2021 2020 2021 2020 (as restated) (as restated) ^(R) ^(R) (In thousands) (In thousands)REVENUE $ 34,517 $ 24,551 $ 130,786 $ 144,299 EXPENSE Cost of goods sold, IT processing, 22,353 20,973 96,248 102,308 servicing and support Selling, general and 24,546 15,762 84,063 75,256 administration Depreciation and 1,218 996 4,347 4,647 amortization Impairment loss - - - 6,336 OPERATING LOSS (13,600 ) (13,180 ) (53,872 ) (44,248 )CHANGE IN FAIR VALUE 23,362 - 49,304 - OF EQUITY SECURITIESLOSS ON DISPOSAL OFEQUITY-ACCOUNTED - - 472 - INVESTMENT - BANKFRICKLOSS ON DISPOSAL OFEQUITY-ACCOUNTED - - 13 - INVESTMENTGAIN ON DISPOSAL OF - - - 9,743 FIHRSTLOSS ON DISPOSAL OF - 1,010 - 1,010 DNILOSS ONDECONSOLIDATION OF - 7,148 - 7,148 CPSTERMINATION FEE PAID - 17,517 - 17,517 TO BANK FRICKINTEREST INCOME 482 790 2,416 2,805 INTEREST EXPENSE 814 1,279 2,982 7,641 NET INCOME (LOSS)BEFORE INCOME TAX 9,430 (39,344 ) (5,619 ) (65,016 )EXPENSEINCOME TAX EXPENSE 3,011 339 7,560 2,656 NET INCOME (LOSS)BEFORE (LOSS)EARNINGS FROM 6,419 (39,683 ) (13,179 ) (67,672 )EQUITY-ACCOUNTEDINVESTMENTS(LOSS) EARNINGS FROMEQUITY-ACCOUNTED (4,780 ) 1,082 (24,878 ) (29,542 )INVESTMENTSNET INCOME (LOSS)FROM CONTINUING 1,639 (38,601 ) (38,057 ) (97,214 )OPERATIONSNET INCOME FROMDISCONTINUED - - - 6,402 OPERATIONS(LOSS) GAIN FROMDISPOSAL OFDISCONTINUED - (279 ) - 12,454 OPERATION, net oftaxNET INCOME (LOSS) 1,639 (38,880 ) (38,057 ) (78,358 )NET INCOME (LOSS) 1,639 (38,880 ) (38,057 ) (78,358 )ATTRIBUTABLE TO NET1 Continuing 1,639 (38,601 ) (38,057 ) (97,214 ) Discontinued $ - $ (279 ) $ - $ 18,856 Net earnings (loss)per share, in United States dollars:Basic earnings(loss) attributable $ 0.03 $ (0.68 ) $ (0.67 ) $ (1.37 )to Net1 shareholders Continuing $ 0.03 $ (0.68 ) $ (0.67 ) $ (1.70 ) Discontinued $ - $ (0.00 ) $ - $ 0.33 Diluted earnings(loss) attributable $ 0.03 $ (0.69 ) $ (0.67 ) $ (1.37 )to Net1 shareholders Continuing $ 0.03 $ (0.69 ) $ (0.67 ) $ (1.70 ) Discontinued $ - $ (0.00 ) $ - $ 0.33

(R) 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support. The financial information for the three and twelve months ended June 30, 2020, has been restated with the effect of decreasing revenue by $1.4 million and $6.7 million, respectively.(A) Derived from audited consolidated financial statements.

NET 1 UEPS TECHNOLOGIES, INC.Consolidated Balance Sheets (A) (A) June 30, June 30, 2021 2020 (In thousands, except share data) ASSETS CURRENT ASSETS Cash and cash equivalents $ 198,572 $ 217,671 Restricted cash 25,193 14,814 Accounts receivable, net of allowance of - 2021: 26,583 43,068 $267; 2020: $253 and other receivables Finance loans receivable, net of allowance of - 21,142 15,879 2021: $2,349; 2020: $7,658 Inventory 22,361 19,860 Total current assets before settlement assets 293,851 311,292 Settlement assets 466 8,014 Total current assets 294,317 319,306 PROPERTY, PLANT AND EQUIPMENT, net of accumulated 7,492 6,656 depreciation of - 2021: $38,535; 2020: $29,524OPERATING LEASE RIGHT-OF-USE 4,519 5,395 EQUITY-ACCOUNTED INVESTMENTS 10,004 65,836 GOODWILL 29,153 24,169 INTANGIBLE ASSETS, net of accumulated amortization 357 612 of - 2021: $16,403; 2020: $27,325DEFERRED INCOME TAXES 622 358 OTHER LONG-TERM ASSETS, including reinsurance 81,866 31,346 assetsTOTAL ASSETS 428,330 453,678 LIABILITIES CURRENT LIABILITIES Short-term credit facilities for ATM funding 14,245 14,814 Accounts payable 7,113 6,287 Other payables 27,588 23,779 Operating lease liability - current 2,822 2,251 Income taxes payable 256 16,157 Total current liabilities before settlement 52,024 63,288 obligations Settlement obligations 466 8,015 Total current liabilities 52,490 71,303 DEFERRED INCOME TAXES 10,415 1,859 OPERATING LEASE LIABILITY - LONG TERM 1,890 3,312 OTHER LONG-TERM LIABILITIES, including insurance 2,576 2,012 policy liabilitiesTOTAL LIABILITIES 67,371 78,486 COMMITMENTS AND CONTINGENCIES - - REDEEMABLE COMMON STOCK 84,979 84,979 EQUITY NET1 EQUITY: COMMON STOCK Authorized: 200,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: 80 80 2021: $56,716,620; 2020: $57,118,925PREFERRED STOCK Authorized shares: 50,000,000 with $0.001 par value; Issued and outstanding shares, net of treasury: - - 2021: -; 2020: -ADDITIONAL PAID-IN-CAPITAL 301,959 301,489 TREASURY SHARES, AT COST: 2021: $24,891,292; 2020: (286,951 ) (286,951 )$24,891,292ACCUMULATED OTHER COMPREHENSIVE LOSS (145,721 ) (169,075 )RETAINED EARNINGS 406,613 444,670 TOTAL NET1 EQUITY 275,980 290,213 NON-CONTROLLING INTEREST - - TOTAL EQUITY 275,980 290,213 TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND $ 428,330 $ 453,678 SHAREHOLDERS? EQUITY

(A) Derived from audited consolidated financial statements.

NET 1 UEPS TECHNOLOGIES, INC.Consolidated Statements of Cash Flows Unaudited (A) Three months ended Year ended June 30, June 30, 2021 2020 2021 2020 (In thousands) (In thousands) Cash flows from operating activities Net income (loss) $ 1,639 $ (38,880 ) $ (38,057 ) $ (78,358 ) Depreciation and 1,218 996 4,347 13,299 amortization Impairment loss - - - 6,336 Movement in allowance for (803 ) 383 110 743 doubtful accounts receivable Loss (Earnings) from equity-accounted 4,780 (1,082 ) 24,878 29,542 investments Movement in allowance for 4,000 316 4,739 1,035 doubtful loans Inventory net realizable value - 1,298 - 1,298 adjustment Change in fair value (23,362 ) - (49,304 ) - of equity securities Fair value adjustment related (361 ) 413 840 (340 ) to financial liabilities Interest payable 45 3 (1 ) 1,758 Loss on disposal of equity-accounted - - 472 - investment - Bank Frick Loss on disposal of equity-accounted - - 13 - investment Gain on disposal of - 279 - (12,454 ) Net1 Korea Gain on disposal of - - - (9,743 ) FIHRST Loss on deconsolidation of - 7,148 - 7,148 CPS Loss on disposal of equity-accounted - 1,010 - 1,010 investment - DNI (Profit) Loss on disposal of (120 ) (32 ) 480 (127 ) property, plant and equipment Stock-based compensation charge, (532 ) 558 344 1,728 net Dividends received from equity 69 1,424 194 3,549 accounted investments (Increase) Decrease in accounts receivable and (479 ) (4,879 ) 3,751 8,818 finance loans receivable (Increase) Decrease (1,363 ) (1,292 ) 1,279 (19,328 ) in inventory Increase (Decrease) in accounts payable 4,058 4,521 (335 ) (139 ) and other payables Decrease in taxes (1,712 ) (340 ) (17,210 ) (1,427 ) payable Increase (Decrease) 4,665 225 5,089 (393 ) in deferred taxes Net cash used in operating (8,258 ) (27,931 ) (58,371 ) (46,045 ) activitiesCash flows from investing activitiesCapital expenditures (338 ) (1,445 ) (4,285 ) (5,938 )Proceeds from disposalof property, plant and 226 216 571 578 equipmentProceeds from disposalof equity-accounted - - 18,568 - investment - BankFrickProceeds from disposalof Net1 Korea, net of - - 20,114 192,619 cash disposedTransaction costs paidrelated to disposal of - - - (7,458 )Net1 KoreaProceeds from disposalof DNI as - 42,477 6,010 42,477 equity-accountedinvestmentTransaction costs paidrelated to disposal ofDNI as - (1,010 ) - (1,010 )equity-accountedinvestmentProceeds from disposalof FIHRST, net of cash - - - 10,895 disposedDeconsolidation of CPS - (328 ) - (328 )- cash disposedInvestment inequity-accounted - - - (2,500 )investmentsLoan toequity-accounted - (519 ) (1,238 ) (1,230 )investmentRepayment of loans byequity-accounted - - 134 4,268 investmentsNet change in 1,711 18 7,901 (9,256 )settlement assets Net cash provided by 1,599 39,409 47,775 223,117 investing activitiesCash flows from financing activitiesProceeds from bank 98,324 104,490 360,083 689,763 overdraftRepayment of bank (97,137 ) (142,682 ) (365,440 ) (747,935 )overdraftProceeds from issue of - - 53 - sharesProceeds fromdisgorgement of - - 124 - shareholders'short-swing profitsLong-term borrowings - - - 14,798 utilizedRepayment of long-term - (3,190 ) - (14,503 )borrowingsGuarantee fee - - - (148 )Finance lease capital - - - (69 )repaymentsNet change in (1,711 ) (18 ) (7,901 ) 9,256 settlement obligations Net cash used in (524 ) (41,400 ) (13,081 ) (48,838 ) financing activitiesEffect of exchange 4,118 1,747 14,957 (17,260 )rate changes on cashNet decrease in cash,cash equivalents and (3,065 ) (28,175 ) (8,720 ) 110,974 restricted cashCash, cash equivalentsand restricted cash ? 226,830 260,660 232,485 121,511 beginning of periodCash, cash equivalentsand restricted cash ? $ 223,765 $ 232,485 $ 223,765 $ 232,485 end of period

(A) Derived from audited consolidated financial statements.

Net 1 UEPS Technologies, Inc.

Attachment A

Operating segment revenue, operating (loss) income and operating (loss) margin:

Three months ended June 30, 2021 and 2020 and March 31, 2021

Change ? Change - constant actual exchange rate ^(1) Q4 '21 Q4 '20 Q3 '21 Q4 '21 Q4 '21 Q4 '21 Q4 '21Key segmental data, in (as vs vs vs vs?000, except margins restated)^ Q4 '20 Q3 '21 Q4 '20 Q3 '21 (A)Revenue: Processing $ 21,192 $ 16,391 $ 18,747 29 % 13 % 6 % 7 % All Other 21,192 15,470 18,741 37 % 13 % 12 % 7 % IPG - 921 6 nm nm nm nm Financial services 10,830 8,751 10,192 24 % 6 % 1 % 1 % Technology 4,905 1,932 2,026 154 % 142 % 108 % 129 % Subtotal: Operating 36,927 27,074 30,965 36 % 19 % 12 % 13 % segments Intersegment (2,410 ) (2,523 ) (2,137 ) (4 %) 13 % (22 %) 7 % eliminations Consolidated $ 34,517 $ 24,551 $ 28,828 41 % 20 % 15 % 13 % revenueOperating (loss) income: Processing $ (5,785 ) $ (10,089 ) $ (10,816 ) (43 %) (47 %) (53 %) (49 %) All Other (5,809 ) (5,809 ) (7,484 ) - (22 %) (18 %) (26 %) IPG 24 (4,280 ) (3,332 ) nm nm nm nm Financial services (2,875 ) (1,016 ) (2,111 ) 183 % 36 % 132 % 29 % Technology (357 ) 136 131 nm nm nm nm Subtotal: Operating (9,017 ) (10,969 ) (12,796 ) (18 %) (30 %) (33 %) (33 %) segments Corporate/ (4,583 ) (2,211 ) (1,496 ) 107 % 206 % 70 % 190 % Eliminations Consolidated operating $ (13,600 ) $ (13,180 ) $ (14,292 ) 3 % (5 %) (15 %) (10 %) lossOperating (loss) income margin (%) Processing (27.3 %) (61.6 %) (57.7 %) IPG (27.4 %) (37.6 %) (39.9 %) All Other - (464.7 %) nm Financial services (26.5 %) (11.6 %) (20.7 %) Technology (7.3 %) 7.0 % 6.5 % Consolidated (39.4 %) (53.7 %) (49.6 %) operating margin

(A) 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support.

(1) This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during Q4 2021 also prevailed during Q4 2020 and Q3 2021.

Twelve months ended June 30, 2021 and 2020

Change ? Change - constant actual exchange rate ^(1) F2021 F2020 F2021Key segmental data, in (as vs F2021?000, except margins restated)^ F2020 vs (A) F2020Revenue: Processing $ 82,435 $ 91,786 (10 %) (20 %) All other 80,742 88,476 (9 %) (18 %) IPG 1,693 3,310 (49 %) (54 %) Financial services 38,996 46,870 (17 %) (26 %) Technology 17,751 18,071 (2 %) (12 %) Subtotal: 139,182 156,727 (11 %) (21 %) Operating segments Intersegment (8,396 ) (12,428 ) (32 %) (40 %) eliminations Consolidated 130,786 144,299 (9 %) (19 %) revenueOperating (loss) income: Processing $ (34,283 ) $ (33,836 ) 1 % (9 %) IPG (23,556 ) (21,488 ) 10 % nm All other (10,727 ) (12,348 ) (13 %) nm Financial services (8,429 ) (3,621 ) 133 % 108 % Technology 2,627 2,815 (7 %) (17 %) Subtotal: (40,085 ) (34,642 ) 16 % 4 % Operating segments Corporate/ (13,787 ) (9,606 ) 44 % 28 % Eliminations Consolidated operating (53,872 ) (44,248 ) 22 % 9 % lossOperating (loss) income margin (%) Processing (41.6 %) (36.9 %) All other (29.2 %) (24.3 %) IPG (633.6 %) (373.1 %) Financial services (21.6 %) (7.7 %) Technology 14.8 % 15.6 % Consolidated (41.2 %) (30.7 %) operating margin

(A) 2020 has been restated to correct an error with respect to the recognition of certain revenue and related cost of goods sold, IT processing, servicing and support.

(1) This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during fiscal 2021 also prevailed during fiscal 2020.

(Loss) Earnings from equity-accounted investments:

The table below presents the (loss) earnings from our equity-accounted investments:

Q4 2021 Q4 2020 % F2021 F2020 % change changeFinbond $ (1,742 ) $ 1,349 nm $ (22,009 ) $ 1,840 nm Share of net (1,742 ) 1,349 nm (4,359 ) 1,840 nm (loss) income Impairment - - nm (17,650 ) - nmBank Frick - 651 nm 1,156 (17,273 ) nm Share of net - 651 nm 1,156 1,421 (19 %) income Amortization of intangible - - nm - (433 ) nm assets, net of deferred tax Impairment - - nm - (18,261 ) nmDNI - - nm - (9,744 ) nm Share of net - - nm - 4,676 nm income Amortization of intangible - - nm - (1,350 ) nm assets, net of deferred tax Impairment - - nm - (13,070 ) nmOther (3,038 ) (918 ) 231 % (4,025 ) (4,365 ) (8 %) Share of net (92 ) (918 ) (90 %) (531 ) (1,865 ) (72 %) loss Impairment (2,946 ) - nm (3,494 ) (2,500 ) 40 % (Loss) Earnings from $ (4,780 ) $ 1,082 nm $ (24,878 ) $ (29,542 ) (16 %) equity-accounted investments

Net 1 UEPS Technologies, Inc.

Attachment B

Reconciliation of GAAP operating loss to EBITDA (loss) and adjusted EBITDA (loss):

Three months ended June, 30, 2021 and 2021, and March 31, 2021; and twelve months ended June 30, 2021 and 2020

Year ended June 30, Q4 2021 Q4 2020 Q3 2021 2021 2020Operating loss - GAAP (13,600 ) (13,180 ) (14,292 ) (53,872 ) (44,248 ) Depreciation and 1,218 996 1,132 4,347 4,647 amortization Impairment loss - - - - 6,336 Negative EBITDA (12,382 ) (12,184 ) (13,160 ) (49,525 ) (33,265 ) Allowance for doubtful loans receivables from 4,000 316 - 4,739 1,035 equity-accounted investments Transaction 174 - 337 1,879 2,876 costs Adjusted (8,208 ) (11,868 ) (12,823 ) (42,907 ) (29,354 ) EBITDA loss

Reconciliation of GAAP net income (loss) and earnings (loss) per share, basic, to fundamental net loss and loss per share, basic:

Three months ended June 30, 2021 and 2020

Net income (loss) E(L)PS, basic Net income (loss) E(L)PS, basic (USD '000) (USD) (ZAR '000) (ZAR) 2021 2020 2021 2020 2021 2020 2021 2020GAAP 1,639 (38,880 ) 0.03 (0.68 ) 23,223 (671,885 ) 0.41 (11.76 )Change in fairvalue of equity (18,456 ) - (261,497 ) - securities, netAllowance fordoubtful EMI 4,000 316 56,675 5,461 loansreceivableImpairment ofequity method 2,946 - 41,741 - investmentStock-basedcompensation (532 ) 558 (7,538 ) 9,643 chargeTransaction 174 - 2,465 - costsIntangibleasset 70 58 990 990 amortization,netTermination feepaid to cancel - 17,517 - 302,711 Bank FrickoptionLoss ondeconsolidation - 7,148 - 123,525 of CPSLoss on sale of - 1,010 - 17,454 DNIInterestrelated toSASSA - 298 - 5,156 implementationcosts refundFundamental (10,159 ) (11,975 ) (0.18 ) (0.21 ) (143,941 ) (206,945 ) (2.54 ) (3.62 )

Twelve months ended June 30, 2021 and 2020

Net (loss) income (L)EPS, basic Net (loss) income (L)EPS, basic (USD '000) (USD) (ZAR '000) (ZAR) 2021 2020 2021 2020 2021 2020 2021 2020 GAAP (38,057 ) (78,358 ) (0.67 ) (1.38 ) (598,111 ) (1,376,640 ) (10.54 ) (24.25 )Change in fairvalue of equity (38,950 ) - (612,149 ) - securities, netImpairment ofequity method 21,144 32,084 327,140 563,672 investmentsAllowance fordoubtful EMI 4,739 1,035 74,479 18,184 loans receivableTransaction 1,879 2,876 29,531 50,527 costsReversal ofdeferred taxesrelated (1,353 ) - (22,633 ) - to impairment ofequity methodinvestmentLoss on disposalofequity-accounted 472 - 7,418 - investment -Bank FrickStock-basedcompensation 344 2,607 5,406 45,801 chargeIntangible assetamortization, 253 3,805 3,961 66,835 netLoss on sale ofequity method 13 - 204 - investmentTermination feepaid to cancel - (17,517 ) - (307,749 ) Bank FrickoptionGain ondiscontinued - (12,454 ) - (218,799 ) operationGain on disposal - (9,743 ) - (171,171 ) of FIHRSTLoss ondeconsolidation - 7,148 - 125,580 of CPSImpairment loss - 6,336 - 111,314 Intangible assetamortization,net - 1,783 - 31,325 related toequity accountedinvestmentsInterest relatedto SASSA - 1,361 - 23,909 implementationcosts refundLoss on sale of - 1,010 - 17,744 DNIFundamental (49,516 ) (58,027 ) (0.87 ) (1.02 ) (784,754 ) (1,019,468 ) (13.82 ) (17.96 )

Net 1 UEPS Technologies, Inc.

Attachment C

Reconciliation of net income (loss) used to calculate earnings (loss) per share basic and diluted and headline loss per share basic and diluted:

Three months ended June 30, 2021 and 2020

2021 2020 Net income (loss) (USD?000) 1,639 (38,880 )Adjustments: Impairment of equity method investments 2,946 - Loss on deconsolidation of CPS - 7,148 Loss on sale of DNI - 1,010 Profit on sale of property, plant and equipment (120 ) (32 ) Tax effects on above 34 9 Net income (loss) used to calculate headline loss 4,499 (30,745 )(USD?000)Weighted average number of shares used to calculate netearnings (loss) per share basic loss and headline earnings 56,678 57,119 (loss) per share basic loss (?000)Weighted average number of shares used to calculate netloss per share diluted (earnings) loss and headline 56,937 57,119 (earnings) loss per share diluted loss (?000)Headline earnings (loss) per share: Basic, in USD 0.08 (0.54 ) Diluted, in USD 0.08 (0.54 )

Twelve months ended June 30, 2021 and 2020

2021 2020Net loss (USD?000) (38,057 ) (78,358 )Adjustments: Impairment of equity method investments 21,144 33,831 Loss on disposal of equity-accounted investment - Bank 430 - Frick Gain on disposal of discontinued operation - (12,454 ) Gain on disposal of FIHRST - (9,743 ) Impairment loss - 6,336 Loss on deconsolidation of CPS - 7,148 Loss on sale of DNI - 1,010 Loss (Profit) on sale of property, plant and equipment 480 (127 ) Tax effects on above (134 ) 36 Net loss used to calculate headline loss (USD?000) (16,137 ) (52,321 )Weighted average number of shares used to calculate netloss per share basic loss and headline loss per share 56,765 56,764 basic loss (?000)Weighted average number of shares used to calculate netloss per share diluted loss and headline loss per share 56,898 56,764 diluted loss (?000)Headline loss per share: Basic, in USD (0.28 ) (0.92 ) Diluted, in USD (0.28 ) (0.92 )

Calculation of the denominator for headline diluted loss per share

Q4 Q4 F2021 F2020 2021 2020Basic weighted-average common sharesoutstanding and unvested restricted shares 56,678 57,119 56,765 56,764expected to vest under GAAP Effect of dilutive securities under 259 - 133 - GAAP Denominator for headline diluted 56,937 57,119 56,898 56,764 loss per share

Weighted average number of shares used to calculate headline diluted earnings (loss) per share represents the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully-diluted shares outstanding to calculate headline diluted earnings (loss) per share because we do not use the two-class method to calculate headline diluted (earnings) loss per share.