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Lesaka Released Connect Group Historical Results and Unaudited Pro Forma Financial Statements
Lesaka Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: LSAK
JSE share code: LSK
LEI: 529900J4IZMWV4RDEB07
ISIN: US64107N2062
(“Lesaka,” or the “Company”)
Lesaka Released Connect Group Historical Results and Unaudited Pro Forma Financial Statements
Company to Host Webcast to Discuss Results on July 7, 2022
JOHANNESBURG, July 1, 2022 – Lesaka (NasdaqGS: LSAK; JSE: LSK) today announced that the Company
released Connect Group’s audited historical financial statements for the two years ended February 28, 2022
(“Connect Financial Statements”) and unaudited pro forma combined financial statements which can be found
on the SEC.gov website at https://www.sec.gov/Archives/edgar/data/1041514/000156276222000288/0001562762-
22-000288-index.htm.
In addition, the Company announced it will host a webcast on July 7, 2022, at 10:00 a.m. Eastern Time to
discuss the results.
Selected Highlights from Connect Financial Statements for the Year Ended February 2022:
• Revenue increased to R5.1 billion, up 22%, underpinned by strong performance across all product
lines;
• Gross Profit grew to R570 million up 37%, supported by strong revenue growth as well as an
improvement in margins;
• Operating Profit for the year reached R241m up by 41% year on year; and
• EBITDA grew to R382m up 26%, outperforming EBITDA warranted in the Connect Group
Transaction agreements (“Warranted EBITDA”).
“Following the completion of the acquisition, we are delighted to report that Connect Group has comfortably
exceeded the warranted fiscal year 2022 EBITDA of R 375 million ($24.6 million), which was part of the
agreed consideration when we announced the acquisition on November 1, 2021,” said Chris Meyer, Group
CEO “Our companies have been working closely together now for a few months and we are very excited about
the prospects for the combined group and our vision to become the leading Fintech platform in Southern
Africa - improving lives by driving financial inclusion.”
Summary Financial Metrics
Feb, 2022 Feb, 2021 Change
R millions R millions
Gross Revenue 5 152 4 325 22%
Gross Profit 570 416 37%
Operating Profit 241 171 41%
EBITDA (note 1) 382 304 26%
Profit after Tax 124 75 65%
Note 1 –EBITDA is a non-GAAP measure as described below under “Use of Non-GAAP Measures—EBITDA.” See Attachment
1 for a reconciliation of GAAP operating profit to EBITDA
Periods used in preparing Pro Forma Financial Statements:
The pro forma accounts have been prepared using the following periods, in accordance with SEC rules:
1. the unaudited pro forma combined balance sheet, which combines the historical balance sheets of the
Company as of December 31, 2021, and Connect Group as of February 28, 2022 as if the acquisition
had occurred on December 31, 2021.
2. the unaudited pro forma combined statement of operations for the six months ended December 31,
2021, which combines the historical statements of operations of the Company for the six months ended
December 31, 2021, and of Connect Group for the six months ended February 28, 2022, as if the
acquisition had occurred on July 1, 2020.
3. the unaudited pro forma combined statement of operations for the twelve months ended June 30, 2021,
which combines the historical statements of operations of the Company for the year ended June 30,
2021, and of Connect Group for the twelve months ended August 31, 2021, as if the acquisition had
occurred on July 1, 2020.
The full Form 8-K/A can be found on our investor relations website at SEC Filings | Lesaka Technologies.
Webcast & Conference Call Information:
The Company management will be hosting a webcast and conference call on July 7, 2022 at 10:00 a.m. Eastern
Time to discuss the Connect Group results. The presentation will include
1. an overview of the combined group post acquisition;
2. a discussion of the Connect Group strategy and key products;
3. an analysis of the Connect Group’s audited 28 February 2022 financial statements, including:
a. a revenue analysis by key product,
b. an adjusted gross profit calculation and discussion,
c. an EBITDA and cash flow analysis,
d. a review of the pro forma net debt position after transaction closing,
4. a review of the acquisition rationale and combined group strategy,
5. a questions and answers session.
Participating on the webcast from Lesaka’s management team will be Chris Meyer, Group CEO, Naeem
Kola, CFO, Lincoln Mali, CEO, Southern Africa and Steve Heilbron, CEO, Connect Group.
Participants have the option to either:
• Watch the live results presentation by webcast using the webcast link below; or
• Listen to an audio only broadcast of the results, using the conference call information below.
The Connect Group results webcast can be accessed by using the following link:
https://www.corpcam.com/Lesaka30062022. Participants who want to submit their questions real-time will
be able to do so utilizing the question functionality included in this link.
The conference call can be accessed by dialing in real time. Questions can be submitted through the
conference call functionality. Below are the conference call access details:
HD Web phone Click here
Johannesburg: 011 535 3600
Johannesburg: 010 201 6800
USA and Canada: 1 508 924 4326
UK: 0 333 300 1418
The event will be webcast live on the Company’s investor relations website at https://ir.lesakatech.com. A
replay of the webcast will be made available on the investor relations website.
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 is a non-GAAP measure.
Earnings Before Interest Tax, Depreciation and Amortization “EBITDA”
EBITDA is GAAP operating profit adjusted for depreciation and amortization.
Management believes that the EBITDA metric enhances its own evaluation, as well as an investor’s
understanding, of the Company’s financial performance. Attachment 1 presents the reconciliation between
GAAP operating profit and EBITDA.
About Lesaka (www.lesakatech.com)
Lesaka Technologies, (Lesaka™) is a South African Fintech company that utilizes its proprietary banking and
payment technologies to deliver superior financial services solutions to merchants (B2B) and consumers
(B2C) in Southern Africa. Lesaka’s mission is to drive true financial inclusion for both merchant and consumer
markets through offering affordable financial services to previously underserved sectors of the economy.
Lesaka offers cash management solutions, growth capital, card acquiring, bill payment technologies and value-
added services to formal and informal retail merchants as well as banking, lending, and insurance solutions to
consumers across Southern Africa. The Lesaka journey originally began as “Net1” in 1997 and later rebranded
to Lesaka (2022). The Connect Group was acquired in 2022. As Lesaka, the business continues to grow its
systems and capabilities to deliver meaningful fintech-enabled, innovative solutions for South Africa’s
merchant and consumer markets.
Lesaka has a primary listing on NASDAQ (NasdaqGS: LSAK) and a secondary listing on the Johannesburg
Stock Exchange (JSE: LSK). Visit www.lesakatech.com for more information about Lesaka Technologies
(Lesaka ™).
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:
ICR
Email: LesakaIR@icrinc.com
Media Relations Contact:
Janine Bester Gertzen
Email: Janine@thenielsennetwork.com
Attachment 1
Reconciliation of operating profit to EBITDA for the years ended February 28, 2022 and 2021, under US
GAAP and IFRS for SMEs:
US GAAP IFRS for SMEs
2022 2021 2022 2021
R ‘000 R ‘000 R ‘000 R ‘000
Operating profit 241,246 171,117 200,193 129,916
Add:
Depreciation 92,412 83,870 92,412 83,870
Amortization of intangible assets 48,392 48,546 48,392 48,546
Amortization of goodwill - - 41,053 41,201
Transaction costs 8,472 - 8,472 -
Less:
Interest on funding for lending
book (9,566) (196) (9,566) (196)
EBITDA 380,956 303,337 380,956 303,337
Warranted EBITDA(A) 375,000
(A) As agreed in the Connect transaction agreements.
Johannesburg
July 1, 2022
Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 01-07-2022 08:58:00
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