disclaimer -...

DISCLAIMERDISCLAIMER

This document will contain statements about the Company's futureresults call. These statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements represent only the Company's views as of today, based on current expectations in light of the current economic environment. While we may choose to update forward-looking statements in the future, we specifically disclaim any duty to do so; therefore, these forward-looking statements should not be relied upon as representing the Company's views as of any later date. Forward-looking statements and projections are inherently subject to significant economic, competitive and other uncertainties and contingencies which are beyond the control of Net 1. We caution you that such statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements.

Page 1Page 1

MISSION STATEMENTMISSION STATEMENT

“To provide a secure, universal and affordable transacting system for all, utilizing existing infrastructures, that will enable

the majority of people unqualified access to previously inaccessible goods and services, resulting in the upliftment of their lifestyles, whilst opening up new, low risk and profitable

markets for the suppliers concerned.”

Page 2Page 2

THE WORLDTHE WORLD

Page 3Page 3

THE UNBANKED & UNDERBANKEDTHE UNBANKED & UNDERBANKED

Page 4Page 4

ACCESSING THE BOTTOM OF THE PYRAMID (BOP)ACCESSING THE BOTTOM OF THE PYRAMID (BOP)

Page 5Page 5

SOUTH AFRICATHE UNBANKED & UNDERBANKED BY LSM, 2001


Page 6Page 6

SOUTH AFRICA - THE UNBANKEDSOUTH AFRICA - THE UNBANKED

• Food • Food

• Clothing

• Food

• Clothing

• Insurance (Burial)

• Loans (Micro)

• Food

• Clothing

• Transport (Taxis)


• Utilities

• Accommodation

• Savings(Stockvels)

• Food

• Clothing

• Transport (Taxis & Fuel)

• Insurance (Burial & Short-term)

• Loans (6-12 months)

• Utilities (Water & Electricity)

• Accommodation (Rent/Mortgage)

• Savings (Stockvels)

Page 7Page 7

• Food

• Clothing


• Loans (Micro)


• Savings

• Furniture

• Food

• Clothing

• Home Loan

• Transport (Car / Fuel)

• Insurance (Short-term + Life)

• Loans (Bank)


• Savings

• Furniture

• Entertainment

SOUTH AFRICA - THE BANKEDSOUTH AFRICA - THE BANKED

Page 8Page 8



36%35%

18% 11%

25%

23%

52%

11%

10%

79%

UnemployedUnemployed

Work part-timeWork part-time

Work full timeWork full time

Living StandardMeasure (8-10)


Living StandardMeasure (6)

Living StandardMeasure (6) Living Standard

Measure (7)

Living StandardMeasure (7)



Work part-timeWork part-time

Unbanked 17.69 millionUnbanked 17.69 million Banked 11.33 millionBanked 11.33 million

1.95 m1.77 m

4.02 m

2.01 m

4.06 m

1.24 m

4.06 m

1.95 m

1.77 m

Work full-timeWork full-time



13.97 m

Page 9Page 9

U.E.P.S. VS TRADITIONAL BANK ACCOUNTSU.E.P.S. VS TRADITIONAL BANK ACCOUNTS

Page 10Page 10

U.E.P.S1) Zero cost to social grant beneficiaries. 2) R8.00 per month to all other card holders for the use of

a secure, portable wallet.

Identification method = Biometric Fingerprint. Reduces risks associated with FRAUD. No fingerprint match results in transaction being denied.

Zero charge to the card holder for the smart card itself. Employer pays a once-off cost of +/- R45.00. (Life-span of the card is 10 years).

Spending at U.E.P.S. merchants is free of charge to the card holder as the transaction is performed OFFLINE (No cost to merchant or Net 1).

OFFLINE Settlement can be performed by merchants with no ONLINE network infrastructure – “Milking Function”. ONLINE Settlement is performed at the end of each day – 1 telephone connection to System Host.

Merchants can choose to dispense their funds at settlement to either a traditional bank account or a Net 1 client smart card which can be used to purchase goods and perform cash withdrawals from retailers and wholesalers.

•

•

•

•

•

Traditional Bank Account1) Current cost to run a bank account is +/- R40 – R50

per month.

2) Current cost to run Mzanzi account 25

• Identification option = PIN (Insecure & Complex to manage)

Annual cost to card holder +/- R60 – R80 per annum which last between one and two years.

Spending at traditional bank merchants is performed online & attracts normal ONLINE Debit Charges i.e. R2.05 per transaction – High network costs involved.

ONLINE Settlement only.

Merchants are required to open up a traditional bank account and are then forced to cash cheques as the trade stores do not accept cheques as payment

+/- R per month.

•

•

•

•

U.E.P.S. VS TRADITIONAL BANK ACCOUNTS (continued)U.E.P.S. VS TRADITIONAL BANK ACCOUNTS (continued)

Page 11Page 11

U.E.P.S.•

•

•

•

•

•

•

•

•

•

•

wages onto the smart card with ONLINE, OFFLINE Automatic & OFFLINE Manual – anytime, anywhere at a U.E.P.S. POS /ATM – no charge for an OFFLINE LOAD.

Unlimited Number of cash withdrawals.

Zero Value limit on cash withdrawals.

Cash Withdrawal transactions are performed OFFLINE. Fees are 50% cheaper than current Saswitch fees. Maximum R5.00 for low income earners.

Merchant profiles maintained on merchant card – enabling sharing of POS devices - Reduced costs.

Hot Card Files maintained on merchant card. (Key for OFFLINE processing).

Multiple Audit Trail - In the event of merchants/ clients losing/misplacing their cards, the system will re-create the transactions using this function.

Net 1 pays interest monthly, calculated on the daily balance.

No charge for wallet to wallet transfers.

Multi Financial institutions facility on a single card.

Health care (HIV/AIDS).

Convenience benefit – Card holders can load their

Traditional Bank Account• Wages are paid into a bank account resulting in

card holder queuing at ATMs. ATM charges apply for “Balance Enquiry” etc.

•

•

•

•

•

•

•

•

•

• Non-existent.

1 to 2 withdrawals per day.

Limit set per card holder.

Cash withdrawals are performed ONLINE. High ATM charges.

Merchant profiles stored & maintained in the POS memory. Sharing of POS devices not possible.

Hot Card Files stored in POS memory but still verified ONLINE by issuing institution.

Not available in existing banking applications.

Interest calculated on the monthly minimum balance.

Bank charge minimum R 2.90.

Non-existent.

MARKETING APPROACHMARKETING APPROACH

Page 12Page 12

INTERNATIONAL PAYMENT INTERCHANGE SYSTEM TO THE DEVELOPING WORLD

THE SECOND STEPTHE SECOND STEP

UEPS

FINALNEGOTIATIONS

VTU

CONTRACT SIGNED &ACTIVITIES COMMENCED

• South Africa • CIS Republic• Mozambique • Botswana• Ghana • Burundi• Namibia • Malawi• Rwanda • Nigeria

• Colombia • Iraq• Indonesia• Mozambique• Tanzania• Kenya

UEPS VTU• Vietnam• Mozambique

DISCUSSIONPHASE

CONTRACT SIGNED &ACTIVITIES COMMENCED

• South Africa• Nigeria• Cameroon• Swaziland

VTU MTN

CONTRACTSIGNED

VTU MTN• Rwanda• Ivory Coast

• Indonesia

• United Arab Emirates

VTU

Page 13Page 13

U.E.P.S. PRODUCTS – S2S PENSION & WELFAREU.E.P.S. PRODUCTS – S2S PENSION & WELFARE

S2S Pension & Welfare

Facts and Assumptions

Main Economic Drivers• Government – R 25.56 per social grant beneficiary per month (Changes dependent on agreement with Government)

• Social grant beneficiary – ZERO charge per month for use of card account

Financial Services (Direct or Indirect)

Loans R500 over 6 monthsR500 over 6 months R30,00R30,00

InsuranceInsurance R50 premiumR50 premium R11,00R11,00

Debit OrdersDebit Orders Two (2) per monthTwo (2) per month R4,00R4,00Transactional Services R4.00

Total potential fee from service providers R49,00Government R25,56R25,56Total potential fee per beneficiary card 4.56R7

PRODUCTS DESCRIPTIONDESCRIPTION MAX FEE PER MONTHMAX FEE PER MONTH

Page 14Page 14


Estimated number of grants per grant type - Year ended June 2006

0

10,000

20,000

30,000

40,000

50,000

60,000

Old

Age

War

Vete

rans

Disa

bility

Gra

nt

Insti

tutio

nal

Uncl

aim

edBe

nefit

s

Foste

r Car

eGr

ant

Car

e-D

epen

denc

yGr

ant

Com

bina

tion

Child

Supp

ort

Gran

t

'000

Estimated value of grants - Year ended June 2006

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Old

Age

Disa

bility

Uncla

imed

Bene

fits

Care

-De

pend

ency

Child

Supp

ort

Gran

t

Valu

e in

$'00

0N

umbe

r of g

rant

s ‘0

00

Page 15Page 15


Estimated number of grants per Service Provider - Year ended June 2006

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Banks SAPO Institutional Allpay CPS (NET 1) Empilweni

Num

ber

of g

rant

s

Estimated value of grants per Service Provider - Year ended June 2006

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000


Val

ue in

$'0

00

Page 16Page 16


Potential increase in value of grants per grant type

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Old

Age

War

Vet

eran

s

Dis

abilit

y

Inst

itutio

nal

Unc

laim

ed B

enef

its

Fost

er C

are

Gra

nt

Car

e-D

epen

denc

y

Com

bina

tion

Chi

ld S

uppo

rt G

rant

Gra

nt in

Aid

Valu

e in

$'0

00

Current value of grantsPotential increase - year 1Potential increase - year 2

Potential increase in value of grants per Service Provider

0

1,000

2,000

3,000

4,000

5,000

6,000


Valu

e in

$'0

00

Current value of grantsPotential increase - year 1Potential increase - year 2

Page 17Page 17


CPS (NET 1) number of grants per grant type - Year ended June 2006

0

5,000

10,000

15,000

20,000

25,000

Old

Age

War

Vete

rans

Dis

abili

ty

Unc

laim

edbe

nefit

s

Fost

er C

are

Com

bina

tion

Car

eD

epen

danc

y

Chi

ldS

uppo

rtG

rant

Num

ber o

f gra

nts

'000

CPS (NET 1) value of grants per grant type - Year ended June 2006

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Old

Age

War

Vet

eran

s

Dis

abili

ty

Unc

laim

edbe

nefit

s

Fost

er C

are

Com

bina

tion

Car

eD

epen

danc

y

Chi

ldS

uppo

rtG

rant

Valu

e in

$'0

00

Page 18Page 18


Pension and Welfare Revenue - Year ended June 2006

73%

4%23%

Transaction-based activities Smart card accounts UEPS based lending

Pension and Welfare Operating Income - Year ended June 2006

20%

6%

74%

Transaction-based activities Smart card accounts UEPS based lending

Page 19Page 19


Estimated revenue - no increase in market share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Transaction-basedactivities

Smart card accounts UEPS based lending

Price increase - year 2

Increase in number of beneficiaries - year 2



Year ended June 2006

Estimated operating income - no increase in market share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%








Page 20Page 20


Estimated revenue - increase in market share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



Potential increase in market share - year 2







Estimated operating income - increase in market share

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%










Page 21Page 21

S2S Wage Payment System


Main Economic Drivers• Employers – R 5,00 per wage per month (Changes dependent on frequency of payments)• Employee – R 8,00 per month for use of card account• Financial Services (Direct or Indirect)

Potential Revenue South Africa

National Potential Customer Base 7,78 Million

Total anticipated revenue per client (R34.58) calculated at 52% of maximum revenue (R66.50)

U.E.P.S. PRODUCTS – S2S WAGEU.E.P.S. PRODUCTS – S2S WAGE

Loans R500 over 6 monthsR500 over 6 months R30,00R30,00

InsuranceInsurance R50 premiumR50 premium R11,00R11,00Debit Orders R8,00R ,00Transactional Services

Savings

R4.00

PRODUCTS DESCRIPTIONDESCRIPTION MAX FEE PER MONTHMAX FEE PER MONTH

R 0,50

R53,50R13,00

R66,50

R 0,50

R53,50R13,00

R66,50

Four (4) per month

0.5% of Average spend (R800.00)

(3% on a balance of R200) R 0,50R 0,50

R53,50R ,50R13,00R13,00

R66,50R66,50Employers and employees

Page 22Page 22

U.E.P.S. PRODUCTS – S2S WAGEU.E.P.S. PRODUCTS – S2S WAGE

Anticipated Growth and Revenue

Existing Base Growth Customer Base Revenue

Year 1 0 500,000 500,000 103,125,000

Year 2 500,000 750,000 1,250,000 360,937,500

Year 3 1,250,000 500,000 1,750,000 618,750,000

Year 4 1,750,000 350,000 2,100,000 794,062,500

Year 5 2,100,000 300,000 2,400,000 928,125,000

Market Penetration

S2S Wage Payment System (continued)

Page 23Page 23

U.E.P.S. PRODUCTSS2S VIRTUAL TOP UP SYSTEM (VTU)


S2S Virtual Top Up System


Main Economic Drivers• Approximately 90% of the market in South Africa is prepaid.• Potential to grow subscriber base by 5 million to 35 million over the next two to three years

Year 1 Year 2 Year 3

Total number of pre-paid subscribers 26,600,000 27,930,000 29,326,500

Estimated number of VTU subscribers 1,800,000 4,500,000 4,500,000

Estimated revenue R10,671,750 R70,341,750 R82,620,000

Estimated operating income R1,222,982 R34,080,577 R43,920,792

Number of pre-paid subscribers - South Africa

7,400,000

2,400,000

16,800,000Vodacom

MTN

Cell C

Page 24Page 24



S2S Virtual Top Up System (continued)

COLOMBIA

• Commercial agreements concluded & signed.• Customisation, systems integration and testing for first Colombian mobile operator completed• Installation & commissioning scheduled for mid January. Pilot scheduled for February.

VIETNAM

• Commercial: Terms agreed & signed (implementation agreement signed), shareholder & licensing agreements currently being finalised. Commercial finalisation scheduled for mid January

MOZAMBIQUE

• Commercial agreements finalised and awaiting signature, licensing agreement currently being finalised.• Customisation, systems integration & testing for mobile operator completed.• Installation & commissioning scheduled for end January. Pilot scheduled for February.

Year 1 Year 2 Year 3

Total number of pre-paid users 22,396,563 23,994,201 25,229,069

Potential margin earned $3,596,056 $9,194,302 $11,470,119

Page 25Page 25

EasyPay


Main Economic DriversTotal number of transactions per month 40,0 millionTotal value of transactions per month R8,6 billion

Key merchantsPick ‘n Pay Shoprite CheckersEdcon CaltexBP TotalHIFI Corporation ABSANuPay

Recipients of bill payments200 municipalities TelkomESKOM SABCVodacom Metropolitan LifeTeba Bank AVON

Number of Point of Service devices 50,000

Type of service Number of transactions per month‘000

Value of transactions per monthR’000

Electronic Funds Transfer 28,250 7,122,188

Pre-paid Cellular 5,788 183,294

Pre-paid Electricity 824 26,740

Bill Payments 1,231 964,785

Other 267 23,931

PRODUCTS - EASYPAYPRODUCTS - EASYPAY

Page 26Page 26

S2S Insurance System


Main Economic Drivers• Insurance Underwriter/Broker – Transaction Processing Fee of R 1,50 per insurance policy per month

(External Insurance Merchant)– Collection Fee of R 2,00 per debit order instruction per month

Potential Revenue South Africa

National Potential Customer Base 7,78 Million

U.E.P.S. PRODUCTS – S2S INSURANCE SYSTEMU.E.P.S. PRODUCTS – S2S INSURANCE SYSTEM

Page 27Page 27

U.E.P.S. PRODUCTS – S2S INSURANCE SYSTEMU.E.P.S. PRODUCTS – S2S INSURANCE SYSTEM

R 0

R 5,000,000

R 10,000,000

R 15,000,000

R 20,000,000

R 25,000,000

R 30,000,000

R 35,000,000

R 40,000,000

R 45,000,000

R 50,000,000

0 1 2 3 4 5

Years

S2S Insurance System (continued)

Anticipated Growth and Revenue

Market Penetration Existing Base Growth Customer Base Revenue

Year 1 0 100,000 100,000 5,400,000

Year 2 100,000 150,000 250,000 13,500,000

Year 3 250,000 200,000 450,000 24,300,000

Year 4 450,000 200,000 650,000 35,100,000

Year 5 650,000 200,000 850,000 45,900,000

Yearly Customer Base Anticipated Revenue

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

0 1 2 3 4 5

Years

Num

ber o

f cus

tom

ers

Page 28Page 28

CURRENT U.E.P.S. BUSINESS OPPORTUNITIESCURRENT U.E.P.S. BUSINESS OPPORTUNITIES

NAMIBIA

NEW APPROVALS

1) 27th Oct 2006 – Approval From Bank of Namibia approving NAMPOST smart card as a payment instrument in Namibia.

2) SLA signed with PAYZONE – Pre-paid ESC and airtimePilot rollout in December 2006Thereafter national rollout – anticipated electricity sales of 210,000 transactions per month – Windhoek areaTenders submitted for rural areas – awaiting outcome.

GROWTH IN EXISTING PROJECT

Nampost – Total cards issued 158,000

MERCHANT ACQUIRING ROLL OUT

128 Merchants Registered

Page 29Page 29


BOTSWANA

APPROVALS

1) 17th May 2006 – Approval from Bank Of Botswana to perform clearing and settlement via Bank Gaborone.

2) SLA signed between Government & our Union Partners LITS 12th Dec 2006SLA signed between SmartSwitch and LITS (Union) – product wages & loan deductions +- 60,000 cards

Marketing Launch Commenced in November 2007System ‘Live’ Date – End March 2007

POTENTIAL CUSTOMERSBotswana Building Society & Botswana Savings Bank +- 400,000 accounts (old passbooks) BANKINGBotswana Post Office – BANKINGBotswana Life – INSURANCE DEDUCTIONS +- 180,000 deductions per monthDebswana – WAGES & DEDUCTIONS +- 20,000 employeesBOPMAS & PULA Medical Aid – Medical Solution (Member Identification, Premium Checks, Authorisation of Benefits & Claim Payment Distribution +- 120,000 members + 60,000 dependantsBOMaid Medical Aid +- 30,000 membersBarisma +- 30,000 wage payment employees (town councils)

MERCHANT ACQUIRING & EMPLOYEESMarketing and awareness has commenced with retailers & employers in Botswana.

Page 30Page 30


NIGERIA

1) Final stages with the Central Bank of Nigeria for SmartSwitch to operate the scheme in Nigeria.Clearing & settlement will be managed via Diamond Bank

2) Negotiations to participate as a customer of the Switch with :-• Ecobank • Uba• Skye • Oceanic• First Inland • Unity bank• First Bank

3) Marketing launch commenced in December 2006Premises completed in February 2007

4) Diamond bank

Phase 1 Teller training commences in March 2007‘Live’ to customers – 1st April 2007LAUNCHING:

• Banking • Wholesale to retail distribution• Cash advances • Loyalty scheme• Personal loans• Money transfers• 3rd party bill payments

Page 31Page 31

NIGERIA (continued)

Phase 2 Student cardPension contribution & distributionTransportation

TENDERSNigerian Government Multi-Purpose Card

Finalists:1) CHAMS Consortium (bidding with the Net 1 solution)2) SONDA S.A./ Interswitch (could use the Net 1 solution if asked by Government)

Comprising :-• National Identity Authentication/Verification• Government Financial Payments For Services• Affordable Banking• Consumer Credit Rating System

Anticipated Card Volumes 65 million over 5 years


Page 32Page 32

IRAQ

1) Finalising numbers for Business Model with partners FUBI LLC2) Presentations and negotiations in place with potential equity partners

• Al Rafideen Bank• Al Rashid Bank• Post Office• Government Pension Department

INITIAL PRODUCTSBankingRetailGovernment wages in respect of Iraqi military, coalition forces. (anticipated volumes +- 2 million)Government pension payments (anticipated volumes 1.5 million)

GHANA

TENDERS

• Ghana national switch & smart card payment system• SmartSwitch is one of two companies selected in the final round

The other entity is:• High Payments Systems

• Bid presentation took place on 26 February 2007• Ownership of the National Switch involving the Central Bank, all the banks in Ghana and the selected technology partner


Page 33Page 33


INDONESIA

STATUS – IN ADVANCED DISCUSSIONSPartners Identified :ALITA (Infocom Network Solution)BRI (Indonesian People Bank)TelkomselFinnet – 40% owned by Central Bank

Business model in final stagesRequest for pilot system – to be negotiated

MOZAMBIQUE

STATUS – IN ADVANCED DISCUSSIONSPartners identified :DIGI TechnologiesCHUMA Bank Equity financing in advanced stagesMarketing campaign & presentations to be held in Mozambique +- 7th/ 8th March 2007 across all market sectorsIncluding Central Bank

Page 34Page 34


TANZANIASTATUS

1) Tanzania Postal Bank - Awaiting board decision (in current discussions with Government) anticipated card volumes +-500,000

2) Advanced stages with Reserve Bank of Tanzania3) Advanced stages with PRIDE Tanzania to acquire UEPS transactions via their NCR ATMs and bank branches4) In discussion with De Beers and Government on artisanal Mining Project

PRODUCTS• Banking • Loans• Cash advances • Bill payments• Money transfers • Wages• Retail • Mining

KENYA

STATUS

1) Advanced Stages with KUSSCO & SACCO Members.Service Level Agreement being prepared – 3000 branches and +- 2 million members

2) In negotiation with Postal Bank Kenya

PRODUCTS• Banking • Loans• Cash advances • Lill payments• Money transfers • Wages• Retail

Page 35Page 35

U.E.P.S PRODUCTS – SOUTH AFRICAU.E.P.S PRODUCTS – SOUTH AFRICA

Page 36Page 36

ROADMAPROADMAP

NAMIBIA BOTSWANA NIGERIA MALAWI SOUTH AFRICAGeneral Banking √ √ √ √

Retail √ √ √ √ √Wholesale to Retail Distribution √

Wage √ √ √ √ √Third Party Collections/Deductions √ √ √ √

Money Transfers √ √ √ √Third Party Bill Payments √ √ √ √

Cash Advances √Financial Services √ √

Micro-Finance Loan RegistrationInsurance Registration √

Payment of Social Welfare Grants √Employee Pension Contribution & Distribution

Artisanal MiningMedical Aid System

Medical Management, Patient Monitoring & Distribution System in respect of HIV/AIDS Patients √

National Health Insurance Fund SystemTransportation √

Government Applications (National I.D., Passport, Diver's Licence, Voting)Virtual Top Up √ √

Pre-paid Utilities (Electricity, Water, Airtime) √ √Internet Applications

Loyalty Schemes √

Page 37Page 37

THE SMART CARD PROJECTTHE SMART CARD PROJECTSECURE MOBILE PAYMENTS & BANKING

Page 38Page 38

THE SMART CARD PROJECTTHE SMART CARD PROJECT

USING THE U.E.P.S. MOBILE SYSTEM TO SECURISE EXISTING DEBIT & CREDIT CARD PAYMENTSPAYMENT CHANNELS (NO MODIFICATIONS ARE REQUIRED TO THESE SYSTEMS)

Internet Credit CardsInternet Debit Cards (New)Merchant Stores (POS Terminals)Phone PaymentsPhone Pre-Authorizations

NO MODIFICATIONS REQUIRED FOR CARD ASSOCIATION PAYMENT STANDARDS

AmountCredit Card NumberExpiry DateCVV (Card Verification Value)

MINOR MODIFICATIONS REQUIRED ON ATM SOFTWARE TO ALLOW FOR “CARD NOT PRESENT” FUNCTIONALITY

Page 39Page 39

• One external factor has a profound impact on the reported numbers:

– The ZAR : US$ exchange rate

6.27506.68407.27916.34587.0551Rate at end of period

6.05765.53505.92566.15566.7193Lowest ZAR : US$ rate during period

7.80306.94737.53236.93887.9748Highest ZAR : US$ rate during period

6.90016.22196.42836.53967.2532ZAR : US$ average exchange rate

June2004

June2005

June2006

December 2005

December 2006

For the year endedFor the six months

ended

FINANCIAL HISTORYFINANCIAL HISTORY

Page 40Page 40

US $: ZAR Exchange Rates

4.5

5

5.5

6

6.5

7

7.5

8

8.5

Jun 30 Jul 31 Aug 31 Sep 30 Oct 31 Nov 30 Dec 31 Jan 31 Feb 29 Mar 31 Apr 30 May 31 Jun 30

US

$: Z

AR

Fiscal 2004 Fiscal 2005 Fiscal 2006 Fiscal 2007

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

FINANCIAL HISTORY (continued)FINANCIAL HISTORY (continued)

Page 41Page 41

-1,8171,529-Costs related to public offering and Nasdaq listing

1.14---Cash dividend per share …...….………..………

0.380.801.030.49Diluted ………..………………………………...

0.400.811.050.49Basic …………………………..………………..

Net income per share attributable to common stockholders:

13,27844,56259,23227,895Net income attributable to common stockholders

13,19144,02658,84927,845Net income before minority interest and earnings from

equity accounted investment……………….

25,92729,66636,65317,530Income tax expense………………………………...

39,11873,69295,50245,375Income before taxes……………………….……….

3,6403,6405,8892,058Interest, net………………………………....……….

35,47871,30389,61343,317Operating income…………………………....……..

11,113---Reorganization costs……………………………….

5,6766,5915,7105,760Depreciation & amortization……………….……....

39,67745,89748,62729,175General and administrative charges.....................

39,13450,68250,61924,245Cost of goods sold, IT processing, servicing and

support………………………………………..

131,098176,290196,098102,497Revenue…………………………………….……

200420052006YTD Q2As reported (US$ ‘000)

Page 42Page 42


-1,6151,404-Costs related to public offering and Nasdaq listing

1.12---Cash dividend per share …...….………..………

0.370.710.950.51Diluted ………..………………………………...

0.390.720.960.51Basic …………………………..………………..

Net income per share attributable to common stockholders:

13,08939,60954,39428,904Net income attributable to common stockholders

13,00339,13254,04328,852Net income before minority interest and earnings from

equity accounted investment……………….

25,55726,36833,65918,164Income tax expense………………………………...

38,56065,50187,70247,016Income before taxes……………………….……….

3,5883,2355,4082,132Interest, net………………………………....……….

34,97263,37782,29444,884Operating income…………………………....……..

10,954---Reorganization costs……………………………….

5,5955,8585,2445,968Depreciation & amortization……………….……....

39,11140,79544,65630,230General and administrative charges.....................

38,57645,04846,48525,122Cost of goods sold, IT processing, servicing and

support………………………………………..

129,227156,694180,082106,204Revenue…………………………………….……

200420052006YTD Q2Indexed at $1: ZAR7

Page 43Page 43


Revenue comparison

-

50,000

100,000

150,000

200,000

250,000

2002 2003 2004 2005 2006

Year

US$

'000 Reported

Indexed(US$1=ZAR7)

Page 44Page 44


Operating income comparison

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

2002 2003 2004 2005 2006

Year

US$

'000 Reported

Indexed(US$1=ZAR7)

Page 45Page 45


Net income comparison

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2002 2003 2004 2005 2006

Year

US$

'000 Reported

Indexed(US$1=ZAR7)

Page 46Page 46


CASH FLOWCASH FLOW

13,855(7,259)(18,009)4,3654,198Forex effect on cash

(24,060)(19)29,72332,2192,874Cash provided by (used in) financing activities

25,96927,46781,98676,153(61,833)(Decrease) Increase in cash

(5,721)(3,397)(5,505)(2,655)(83,887)Cash used in investing activities

41,89538,14275,77742,22414,982Cash provided by operating activities

2005 20042006Q2 2006Q2 2007

US$ ‘000

• The group is highly cash generative with an excellent cash conversion rate.• Cash provided by investing activities in Q2 2007 includes $82.1 million, net of cash

acquired, paid to acquire Prism

Page 47Page 47

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