Center for
Global Development
June 14, 2006
Safe
Safe Harbor
Harbor Statement
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. Forwardlooking 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, 2005 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 forwardlooking statement, whether as a result of new information, future events or otherwise, except as
required by law.
2
Our
Our Mission
Mission
Provide
a secure and affordable
electronic transaction platform
as well as financial services for
the world’s unbanked and under-banked
3
Traditional
Traditional Systems
Systems Do
Do Not
Not Meet
Meet the
the Needs
Needs of
of the
the Unbanked
Unbanked
Limited
purchasing
power
Lack
of
choice
Little
immediate
value
Must
use
cash
4
Our
Our Solution
Solution
¾ Low Cost
¾ Banked
¾ Offline
¾ Choice
¾ Reliable
¾ Competitive
services
¾ Secure
¾ Multiple Products
¾ Cashless
¾ Peace of
mind
5
UEPS
UEPS Platform
Platform
¾ Works offline
¾ Recoverable
Enroll
¾ Multiple
applications
Load
¾ Robust data
Spend
Settle
¾ Biometric authentication
6
UEPS Operation
Cardholder
Merchant
Mainframe
7
Multiple
Multiple Products
Products
Systems:
Welfare, Wage,
Medical,
Voting
Utility
Services:
Pre-paid Electricity,
Water, Telephone,
Transportation
Extended
Applications:
Loyalty, Marketing,
Identification,
Public Records
Services:
Lending, Insurance,
Savings,
Money Transfers
Payment
Applications:
Spending
3rd-party payments
Debit orders
8
Benefits
Benefits of
of Our
Our Solution
Solution
9
South
South African
African UEPS
UEPS Cardholders
Cardholders
3.6 MM Cardholders
2,832
Limpopo
4,607
801
North West
KwaZulu-Natal
402
Northern Cape
2,089
Eastern Cape
Grants, in thousands, paid in the
three months ending
10
March 31, 2006
UEPS
UEPS Adoption
Adoption at
at the
the Point
Point of
of Sale
Sale
Card Holder Transactions:
Merchant Loads Each Calendar Month
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06
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Namibia
Namibia and
and Botswana
Botswana
¾ New entry point
ƒ Banking
¾ Potential to demonstrate full
platform
ƒ Financial services
ƒ Wage payment
ƒ Money transfer
ƒ Government welfare
ƒ Social security
ƒ Healthcare services
Namibia
Botswana
12
Healthcare:
Healthcare: HIV
HIV // AIDS
AIDS
Client
Doctor
Pharmacy
Hospital
Clinic
Outreach
Reporting
Mainframe
13
Africa
Africa –– Strong
Strong Focus
Focus
Kenya
(pop. 34MM)
Nigeria
(pop. 129MM)
Tanzania
(pop. 37MM)
Zambia
(pop. 11MM)
Namibia
(pop. 2MM)
South Africa
(pop. 44MM)
Botswana
(pop. 1.6MM)
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Large
Large Need
Need
China
India
Mexico
Malaysia
Brazil
Indonesia
15
Interoperability
Interoperability
UEPS
Offline
V/MC
EMV
Gift
Card
Online
16
Mobile
Mobile Payments
Payments
17
Program
Program Evaluation
Evaluation
Evaluation
Information
Donor / NGO
Government
Assistance
Individuals
18
Financial
Financial Characteristics
Characteristics
¾ Low capital costs
¾ Low operating costs
¾ Broad channel for additional products
¾ Supports micro-enterprise
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Strong
Strong Revenue
Revenue
Revenue
($MM)
200
176.3
147.9
150
134.9
131.1
100
74.9
51.8
50
0
FY2002
FY2003
FY2004
FY2005
9 Mo. FY2005 9 Mo. FY2006
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Strong
Strong Net
Net Income
Income
Earnings Growth
($MM)
50.0
40.0
30.0
44.6
20.0
11.1
10.0
43.7
34.4
13.1
13.3
FY2002
FY2003
FY2004
FY2005
9 Mo.
FY2005
9 Mo.
FY2006
0.27
0.37
0.38
0.80
0.62
0.76
8.5
0.0
Diluted
EPS ($US)
Earnings to shareholders
Reorganization costs
21
Center for
Global Development
June 14, 2006