1
INTERIM RESULTS
NOVEMBER 2017
FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2017
2
OUTLINE
1 Introduction to CAPPREC
2 Highlights for the period
3 Fintech sector opportunity
7 Annexure
5 Financial performance
4 About our investments
Prospects6
3
LISTING
ABOUT CAPITAL APPRECIATION
▪ Executive – Michael Pimstein,
Bradley Sacks, Alan Salomon
▪ Chairman – Michael (Motty) Sacks
▪ Reputable independent board
EXPERIENCED LEADERSHIP
▪ Elected to focus on Financial Technology sector
▪ Acquired “Payments” businesses – African
Resonance and Dashpay
▪ Acquired “Software Solutions” business Synthesis
▪ Investment in “Payments” business in Australia
(17.5%)
FOUR ACQUISITIONS CONCLUDED
▪ PIC
▪ African Rainbow Capital
▪ Capital Appreciation Empowerment Trust
▪ Capital Appreciation 67 Scheme
STRONG ANCHOR AND
BEE SHAREHOLDERS
▪ Focus on companies in the Services sector
that would provide a platform for growth
and international expansion capability
STATED INVESTMENT OBJECTIVE
▪ Sales restricted until later of (i) share
price exceeds R1,20 or (ii) 1 year post
transaction
FOUNDER LOCK-UP SAFEGUARD
▪ October 2015
▪ Raised R1 billion
▪ R390 million from Founders
4
CAPITAL APPRECIATION SNAPSHOT
PAYMENTS & PAYMENT
INFRASTRUCTURE
CAPITAL APPRECIATION
DASHPAYAFRICAN
RESONANCERESONANCE
AUSTRALIASYNTHESIS
SOFTWARE &
SERVICES
100% 100% 17.5% 100%
A solid foundation for sustainable
organic and acquisitive growth
▪ Directors and Management c. 33%
▪ Together with the Founders,
ownership increases to
c. 60%
▪ BEE ownership certified at 39%
(Voting Interest)
OWNERSHIP
CASH BALANCE
CONTRIBUTION (H1 18)*
▪ R463.1 million
16%
19%81%Turnover
84%EBITDA
* Excludes Corporate
5
H I G H L I G H T S
F O R T H E
P E R I O D
6
OPERATIONAL ACCOMPLISHMENTS
Completed and bedded down three
acquisitions and one investment
Transferred from a SPAC to the
“Software and Computer Services” sector
on the Main Board of the JSE
Good growth in the demand for payment,
regulatory and cloud offerings
Expanded customer base and solidified
pipeline through FY2019
Solid B-BBEE rating
Continued to innovate with new
technologies
7
FINANCIAL RESULTS
Cash flow from operations
R 60,2 m
EBITDA
R 85,6 m129%
HEPS
4,02 cents87%
R 463,1 million cash available
for reinvestment in growth, as
well as further acquisitions
Headline earnings
R 60,1 m124%
• Robust financial results
• Maiden dividend declared
• Strong cash flow from operations, with cash
conversion of 100% of PAT
• Good expense management
• Positioned for growth with a strong net cash
position
Profit before tax
R 83,7 m124%
Maiden Dividend
2 cents per share
8
DIVISIONAL PERFORMANCE
▪ Extremely pleasing
performance
▪ New client contracts and
increased market share
▪ Growing customer order
pipeline
▪ Specialised payment and
billing platform almost
ready for national roll out
▪ Employs artificial
intelligence, machine
learning and data
analytics
▪ Seamless integration into
POS and existing legacy
systems
▪ Posted solid growth
▪ Contract wins and
recognition from clients
▪ Amazon Web Services
“advanced partner” (the
first one accredited in
Africa)
▪ In development to
provide similar services
to AR
▪ Impressive progress in
marketing & capacity
planning
PAYMENT AND PAYMENT INFRASTRUCTURE SOFTWARE & SERVICES INTERNATIONAL
AUSTRALIA
9
F I N T E C H
S E C T O R
O P P O R T U N I T Y
10
DISRUPTIVE FORCES IMPACTING
FINANCIAL INSTITUTIONS GLOBALLY
COST COMMODITISATION1
2
3
5
4
6
Financial institutions will accelerate the
commoditisation of their cost bases, removing them
as points of competition and creating new grounds
for differentiation
PROFIT REDISTRIBUTION
Technology and new partnerships will enable
organisations to bypass traditional value chains,
thereby redistributing profit pools
“EXPERIENCE” OWNERSHIP
Power will transfer to the owner of the customer
interface; pure manufacturers must therefore
become hyper-scaled or hyper-focused
PLATFORMS RISING
Platforms that offer the ability to engage with
different financial institutions from a single channel
will become the dominant model for the delivery of
financial services
DATA MONETISATION
Data will become increasingly important for differentiation, but static data
sets will be enriched by flows of data from multiple sources combined and
used in real time
BIONIC WORKFORCE
As the ability for machines to replicate the behaviour of humans continues
to evolve, financial institutions will need to manage labour and capital as
a single set of capabilities
7 SYSTEMATICALLY IMPORTANT TECHS
Financial institutions increasingly resemble, and are dependent on, large
tech firms to acquire critical infrastructure and differentiating technologies
SOURCE: DERIVED FROM WORLD ECONOMIC FORUM REPORT
8 INSTANT GRATIFICATION
User experience of "online" environment is impacting all industries where
bespoke solutions are offered instantly
9 REGULATORY COMPLIANCE & REFORM
Regulators are increasing oversight and compliance obligations over
established players while also looking to encourage innovation and
reduce transaction friction
11
TECH-ENABLED NEW ENTRANTS
c. 9 million clients
Sought to be low-cost provider
Vitality success demonstrates the
power of user experience, product
bundling and data analytics
Reportedly 4 minutes to
on-board a client
Cost of delivery
Customer
experience
Focused strategy
Profitable, narrow
market segment
Bespoke offering
User experience
Pain points
User experience
Simplicity of offering
and value
proposition
(TYME)
12
CHARACTERISTICS OF FUTURE PAYMENTSInnovations will make payments more cashless and invisible in the future,
while enabling data driven engagement platforms for customers
CASHLESS //
More cash will be displaced by electronic
transactions as payments innovations make
it beneficial for customers to use payments
cards even in small denomination
transactions
BACK OF MIND //
As more transactions become virtual and
automated, more payments processes
become invisible to end customers, changing
their needs and behaviours
ENGAGEMENT //
As payments and mobility becomes more
integrated, the importance of payment
transactions as a potential customer
interaction point will increase for merchants
and financial institutions
DATA DRIVEN //
With greater adoption of electronic
payments, more data will be accumulated
from payment transactions, allowing
financial institutions, services providers and
merchants to gain greater understanding of
customers and businesses
ACCESS TO LOANS //
As more payments are processed through
electronic rails, financial institutions’ visibility
into individuals’ and businesses’ cash flow
and spending patterns will increase,
improving their ability to extend loans to
customers previously less understood
REDUCED COSTS //
Because innovative solutions build on the
existing infrastructure, which has very low
variable costs, the cost of making electronic
transactions will fall as electronic payments
gain more volume
SOURCE: DERIVED FROM WORLD ECONOMIC FORUM REPORT
13
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D I S T R I B U T E D L E D G E R
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INNOVATION IN FINANCIAL TECHNOLOGIES
The big four
banks are
reported to have
spent more that
R30bn on
technology in 12
months through
June 2016
. . . all have an
impact on
Financial
Institutions . . .
. . . many already
part of Capital
Appreciation’s
existing
platforms and
future road
map . . .
SOURCE: MONEYWEB
14
Financial Inclusion is
the process of ensuring
access to appropriate
financial products and
services needed by
vulnerable groups at an
affordable cost in a fair
and transparent manner
▪ Transacting
▪ Saving
▪ Personal credit
▪ Remittance
▪ Insurance
FINANCIAL INCLUSIONThe IFC believes this represents a market opportunity exceeding US $2 trillion
SOURCE: MASTERCARD
15
MOVE TO ELECTRONIC PAYMENTS CONTINUESSOUTH AFRICA
SOURCE: PASA ANNUAL REPORT 2016
RE
TA
IL P
AY
ME
NT
SC
AR
D A
CT
IVIT
Y 18%year-on-year
19%year-on-year
16
POS DEVICE PENETRATIONPOS installed devices per 1 000 people
5 10 15 5 25 30 35
AUSTRALIA
TURKEY
SPAIN
FRANCE
UK
ITALY
U.S.
CANADA
BRAZIL
SOUTH AMERICA
GERMANY
MEXICO
CHINA
RUSSIA
INDIA
SOURCE: BANK OF INTERNATIONAL SETTLEMENTS
SOUTH AFRICA’S
PENETRATION
IS ONLY 4.5
17
CAPITAL APPRECIATION STRATEGY
Piggy back on established brands . . .
PARTNER INNOVATE EXECUTE
Big Four have brand value
exceeding R 70 billion1
B2B2C
Enable others to deliver value
Focus on infrastructure
State of the art proprietary technology
Entrepreneurial culture
Hardware agnostic
Integrate with legacy systems
Service Excellence
Alleviate pain points
User experience
Create eco-system
1 SOURCE: WEF – BRAND FINANCE (JULY 2017) BUSINESSTECH.CO.ZA
Engender trustAdd value
Grow market
• Developed economies
• Emerging economies / Financial Inclusion
A B O U T O U R
I N V E S T M E N T S
19
PAYMENTS & PAYMENT INFRASTRUCTURE DIVISION
Enables banks and corporates to extract additional value and differentiate
at the point of acquiring
BLUE CHIP
CLIENTS
Provide and operate
terminals for leading
brands and
International Banks
PROPRIETARY
PLATFORM
Unique, proprietary
technology platform
enabling rapid
development and
implementation of
customised corporate
solutions across a
diverse range of
sectors
END-TO-END
SOLUTIONS
Design, develop,
implement and
manage innovative,
end-to-end solutions
thereby enhancing and
strengthening the
relationships between
banks, corporates and
their customers
COMPREHENSIVE
OFFERINGS
Available on a turn-key
all inclusive basis or
a la carte
UNIVERSAL
ACQUIRING
Pioneer of “Universal
Acquiring” by
supporting one
uniform infrastructure
for financial and
non‐financial
transactions
AFRICAN RESONANCE & DASHPAY
20
CAPPREC DELIVERS AN END-TO-END SOLUTION
- Legacy systems are inflexible, costly and time consuming to adapt
- Innovation is key to unlocking value
SOURCE: BARCLAYS RESEARCH
RECRUITMENT
OF MERCHANTS
MERCHANT ON-
BOARDING
UNDERWRITE
MERCHANT RISK
PROVIDE
ACCEPTANCE
TRANSACTION
CAPTURE
FRAUD
TOOLS
AUTHORISATION
FX
CLEARING &
RECONCILIATION
SETTLEMENT
MERCHANT
SUPPORT
REPORTING
DISPUTE
MANAGEMENT
SALES RISK MANAGEMENT TECHNICAL PROCESSING SERVICES
PROVIDE ACCEPTANCE TRANSACTION
PROCESSING
POST-TRANSACTION
SERVICES
AFRICAN RESONANCE + DASHPAY
AFRICAN RESONANCE
DASHPAY
VALUE-ADDED SERVICES PRESENT
GROWTH OPPORTUNITY
ANATOMY OF MERCHANT ACQUIRING
21
PLATFORM FOR DELIVERING VALUE-ADDED SERVICES
“Universal Acquiring”
expands the range of
services and delivers
greater value to the
merchant
SELECTED
VALUE ADDED
SERVICE CARD
ACQUIRING
OFFERINGS
TRADITIONAL
SERVICES
NON-TRADITIONAL
SERVICES
22
PAYMENTS REVENUE MODEL
MAINTENANCE
& REPAIRS
▪ Generates monthly
recurring annuity
revenue depending on
level and scope of
services contracted
TRANSACTIONS
▪ Variable based on
transaction type and
value of transaction
LICENSING &
SOLUTIONS
▪ Generates monthly
recurring annuity
revenue dependent
on solution
▪ Flat fee
▪ Commission
POS ESTATE
MANAGEMENT
▪ Generates monthly
recurring annuity
revenue depending on
level and scope of
services contracted
POS DEVICES
▪ Sales of terminals
generates gross profit
▪ Rental of terminals
generates monthly
recurring annuity
revenue
▪ FX risk limited at time
of order
▪ Relationship with
major customers
subject to long-term
master supply
agreements
Predictable but lumpy Annuity tied to the
size of the estate
Annuity and
predictable
Unlimited subject to
developed economic
models
Unlimited
23
BLUE CHIP
CLIENTS
Absa, Investec,
Standard Bank, HSBC,
Nedbank CIB, Citibank,
RMB, Capitec, Afgri
and others
Leading provider of technology products and solutions within the
Financial Services industry
CUSTOMER
CENTRIC
Delivering the highest
business value with a
strong service ethic
THOUGHT
LEADERS
Acquiring and retaining
the best software
development skills
FOCUSED
Exclusive focus in the
financial services
sector
EXPERIENCED
Highly innovative team
with track record of
only successful
delivery
SOFTWARE & SERVICES DIVISIONSYNTHESIS
24
DIVISIONS
Cloud transformation to assist the
Enterprise in becoming cloud ready,
execute mass migrations and to harness
the benefits of public cloud platform
First AWS Advanced Consulting
partner in MEA
CLOUD
CONSULTING
Delivering exceptional end-user
customer experience web and
mobile touch points for financial
services institutions while
maintaining information security
and transactional integrity
DIGITAL
CHANNELS
Integration to enable regulatory
reporting solutions for SARS (tax)
and SARB (balance of
payments), payment processing
and exchange connectivity
PLATFORM
INTEGRATION
PRODUCTS
SYNTHESIS
25
F I N A N C I A L
P E R F O R M A N C E
26
H1 6 MONTHS AS A PERCENTAGE OF FY’17
FINANCIAL PERFORMANCE
CAGR(a)
Revenue 66%
EBITDA 102%
44.2
140.7
196.1
202.9
164.2
197.0
9.4
24.9
42.1
77.5
54.8 6
5.7
1.1
10.6 2
2.7
60.9
51.7 6
2.1
0
50
100
150
200
250
12 months 12 months 12 months 12 months 5 months - actual 6 monthequivalent
FY'14 FY'15 FY'16 FY'17 H1 FY'18 H1 FY'18*
Gross Revenue EBITDA Operating Profit
PAYMENTS & PAYMENT INFRASTRUCTURE DIVISION // YEAR-END 28 FEB
97
%
85
%
10
2%
0%
20%
40%
60%
80%
100%
120%
Gross Revenue EBITDA Operating Profit
TERMINALS AT PERIOD END
22 0
00 32 0
00
48 0
00
0
10 000
20 000
30 000
40 000
50 000
60 000
FY'16 FY'17 H1 FY'18
a Compound annual growth from FY’14 through FY’17 (actual).
* Represents the 6 month equivalent based on 5 months of actual performance.
27
H1 6 MONTHS AS A PERCENTAGE OF FY’17
FINANCIAL PERFORMANCE
CAGR(a)
Revenue 23%
EBITDA 33%
58%
43%
43%
0%
10%
20%
30%
40%
50%
60%
70%
GrossRevenue
EBITDA OperatingProfit
41.6 4
6.1
51.9
77.6
37.6
45.1
12.6 1
5.9 1
9.8
29.9
10.8 13.0
12.4 15.6 1
9.4
29.4
10.6 12.7
0
10
20
30
40
50
60
70
80
90
12 months 12 months 12 months 12 months 5 months - actual 6 monthequivalent
FY'14 FY'15 FY'16 FY'17 H1 FY'18 H1 FY'18*
Gross Revenue EBITDA Operating Profit
SOFTWARE & SERVICES DIVISION // YEAR-END 28 FEB
a Compound annual growth from FY’14 through FY’17 (actual).
* Represents the 6 month equivalent based on 5 months of actual performance.
H1 FY’18 results include
exceptional ramp-up costs
related to AWS Cloud
Migration projects, the
benefits of which will be
revealed in subsequent
periods
28
GROUP SUMMARISED STATEMENT
OF COMPREHENSIVE INCOME
R'm H1 18(unaudited)
H1 17(unaudited)
% increase FY 17(audited)
Revenue 223.4 39.7 - 80.2
EBITDA 85.6 37.4 129% 75.1
Profit before taxation 83.7 37.4 124% 60.3
Profit after tax 60.1 26.9 124% 39.2
Headline earnings per share
(cents)4.02 2.15 87% 3.14
Number of shares in issue
(millions)1 550.0 1 250.0 1 250.0
Weighted average number
of shares (millions)1 495.9 1 250.0 1 250.0
*Acquisitions were completed post 2017 year-end (5 May 2017)
Annuity income
comprises 52% of
turnover, and
growing
Under long-term
contracts
29
SUMMARISED STATEMENT
OF FINANCIAL POSITION
R'm 30 Sep 2017(unaudited)
30 Sep 2016(unaudited)
31 Mar 2017(audited)
Total assets 1 388.1 1 037.8 1 048.8
Non-current assets 825.7 0.2 0.2
Current assets 562.4 1 037.6 1 048.6
Equity 1 337.3 1 030.5 1 042.8
Liabilities 50.8 7.3 6.0
Non-current liabilities 8.4 0 0
Current liabilities 42.4 7.3 6.0
Total equity and liabilities 1 388.1 1 037.8 1 048.8
NAV per share 86 82 83
Cash and cash
equivalents
R463.1 million
30
CASH FLOW
R'm H1 18(unaudited)
H1 17(unaudited)
FY 17(audited)
Cash flow from operations and
investment income60.2 33.6 61.4
Purchase of investments* (569.9) - -
Purchase of an associate (29.7)
Repurchase of 25 million ordinary
shares (treasury shares)(18.8)
Cash and cash equivalents at
end of period463.1 1 037.0 1 047.8
* Does not include the issue of shares to the vendors to the value of R253,2 million.
31
P R O S P E C T S
32
PROSPECTS
▪ Continued and
accelerated growth in
POS device estate
▪ Existing customers
▪ New customers
▪ New applications
▪ Deployment of new
platforms across estates
▪ Introduction of new
products
PAYMENTS & PAYMENT
INFRASTRUCTURESOFTWARE & SERVICES INTERNATIONAL
▪ Licensing of software
applications for
regulatory compliance
▪ Cloud migration
opportunities continue to
accelerate
▪ International expansion
of service offerings
▪ Look forward to
Australian launch in H1
of calendar 2018
OR
GA
NIC
GR
OW
TH
AC
QU
ISIT
ION
S
▪ Evaluating attractive acquisition opportunities in Payments & Payment Infrastructure sector in South
Africa, Africa and other international markets
▪ Evaluating attractive acquisition opportunities in Software & Services sector in South Africa
Capital Appreciation is well capitalised, with the management
skills and technology to drive it’s growth strategy
33
T H A N K Y O U
34
A N N E X U R E
35
INTERNATIONAL TRENDS
▪ Increasing from new
entrants
▪ New payment types
▪ Disruptive
COMPETITION
▪ Empowering new entrants not
constrained by legacy platforms
▪ High IT investment required to
respond to customer needs
TECHNOLOGY
▪ Sector expertise and focus
driving costs down
▪ Consolidation and exit of
banks from payments
FOCUS
▪ Increasingly more
demanding of innovative
solutions that require non-
legacy technology platforms
▪ Lifestyle tailored solutions
CUSTOMERS
▪ Requires expenditure on divergent
priorities and cannot remain current
▪ Security directives are mandatory or
risk and liability is substantial
▪ Driving deployment of new devices
REGULATION
A LEADING INDICATOR FOR SOUTH AFRICAN BANKS – INDUSTRY IN FLUX
36
Increasing adoption and comfort with
card-based and digital currency:
▪ Mobile
▪ Govt. payment distribution (SASSA)
▪ Formalization (India)
▪ Proliferation of payment methods
(incl. wearables)
DIGITAL CURRENCY
▪ Growing middle-class in
emerging economies
across Africa
MIDDLE CLASS
ELECTRONIC PAYMENTS CONTINUE TO
GROW AND MUTATE IN RESPONSE TO
CONSUMER BEHAVIOUR
▪ Regulation and security driving
installation and acceptance of
devices
▪ Forcing accountability
▪ Encouraging digitization
REGULATION
▪ Consumer comfort with
data sharing leads to
integration with payments
▪ New products
▪ New credit tools
▪ Payment linked to and
with content
BIG DATA
Transactions mutating to be
indistinguishable from day-
to-day activity, further driving
to “Universal Acquiring”
37
Rapid development and
implementation of
customised financial and
non-financial solutions
and integration into third-
party applications
PRODUCT
Sophisticated real-time
end-to-end asset and
workflow management
system supporting their
dynamic operating model
and services
OPERATOR
Manages customer
identification, profiling and
monitoring which generates
consumer behaviour data
that enables big data
analytics and targeted
marketing for their clients
PROMOTER
AFRICAN RESONANCE – EXCLUSIVE RIGHTS
TO PROPRIETARY TECHNOLOGY
Handles the acquiring
application parameters
including BIN management,
settlement times and
acquiring application modes
including retail, fuel and
restaurant
Resolink technology provides a single, integrated
platform to deploy and manage acquirers’ terminal fleet
PAYMENT
38
▪ Bank acquiring
▪ Close payment
systems
▪ Agency banking
▪ Microfinance
FINANCIAL
▪ Retail management
▪ Store-in-a-store
solutions
▪ Distribution / SCM
▪ Gift and prepaid
cards
▪ POS integration
RETAIL
▪ Consumer profiling
▪ Consumer database
management
▪ Voucher campaigns
▪ Event management
MARKETING
▪ Social grants
▪ Health benefit
distribution
▪ Food coupons
▪ Medical claims
PUBLIC
▪ Customised payment
solutions
▪ Large scale loyalty
programs
▪ Social responsibility
▪ Short- term
insurance
▪ Reconciliation and
reporting
CORPORATE
SOLUTIONS RANGE ACROSS
INDUSTRY AND FUNCTIONAL AREA
39
ACTIVATIONS & LOGISTICS
▪ Stand alone: counter-top and portable
▪ Integrated PED
▪ Mobile
DEVICES
▪ Asset management
▪ Key injection
▪ Hardware and software assembly
▪ Dispatch and terminal tracking
▪ Remote activation and tracking
▪ Perform component replacement
▪ Perform device re-activation
▪ Quality control and testing
WORKSHOP & REPAIRS
▪ Communications with
processing centre
NETWORK SERVICES
▪ Software development and testing
▪ R&D
▪ Version and update management
▪ Remote version updates of the terminal
SOFTWARE
▪ Product support
▪ Problem identification
▪ Problem resolution (connectivity, software,
parameterisation)
CALL CENTRE
▪ Targeted outbound telemarketing
▪ Coordinated with in-field sales force
COLLABORATIVE SALES
▪ Real-time monitoring of estate and
preventative maintenance
ASSET MANAGEMENT
SERVICES OFFEREDCustomers can select packages or selected services a la carte
40
Blue chip client base
CLIENTS
Blue chip supplier base
SUPPLIERS
History of innovation
INNOVATION
Sector expertise
Experienced team
EXPERTISE /
MANAGEMENT
Unique technologies
TECHNOLOGY
Speed of deployment and ability
to respond to market needs
SPEED
Single interface with integrated device
and CRM records
INTERFACE
Universal acquiring capability
(bundled products)
UNIVERSAL
AFRICAN RESONANCE / DASHPAY STRENGTHS
Compliant with best practice
SECURITY
Visa and Mastercard accredited
ACCREDITATION
41
PAYMENTS & PAYMENT INFRASTRUCTUREILLUSTRATIVE PRO-FORMA HISTORICAL PERFORMANCE YEAR-END 28 FEB
2014 2015 2016 2017H1 FY’185 MONTHS
ACTUAL
H1 FY’186 MONTHS
EQUIVALENT
CAGR
'14 - ‘17
Revenue 44.2 140.7 196.1 202.9 164.2 197.0 66.0%
EBITDA 9.4 24.9 42.1 77.5 54.8 65.7 102.0%
Margin
EBITDA 21.3% 17.7% 21.5% 38.2% 33.4%
Growth
EBITDA 165.0% 69.0% 84.0%
INFORMATION REPRESENTS AN AGGREGRATION OF HISTORICAL PERFORMANCE OF AFRICAN RESONANCE AND DASHPAY FOR EACH OF THEIR RESPECTIVE
FISCAL YEARS. HOWEVER, THE FISCAL YEARS WERE NOT COTERMINOUS AND THE AGGREGATION IS SHOWN FOR ILLUSTRATIVE PURPOSES ONLY
42
SOFTWARE & SERVICESHISTORICAL PERFORMANCE YEAR-END 28 FEB
2014 2015 2016 2017H1 FY’185 MONTHS
ACTUAL
H1 FY’186 MONTHS
EQUIVALENT
CAGR
'14 - ‘17
Revenue 41.6 46.1 51.9 77.6 37.6 45.1 23%
EBITDA 12.6 15.9 19.8 29.9 10.8 13.0 33%
Margin
EBITDA 30.3% 34.5% 38.2% 38.5% 28.7%
Growth
EBITDA 26.2% 24.5% 51.0%
43
COMPARABLE INTERNATIONAL COMPANIESIllustrative of breadth and depth of international “Payments” marketplace
Market capitalisation (in US $ millions) // CY18E EV/EBITDA as of 10/11/2017
NETWORKS EMERGING PAYMENTSMERCHANT ACQUIRORSPOS / CASH
DISBURSEMENT
$257,105 // 18.1x
$158,227 // 18.8x
$16,223 // 11.4x $6,418 // 13.7x
$16,083 // 10.5x $5,119 // 15.4x
$15,972 // 15.2x $982 // 9.1x
$12,395 // 15.4x $537 // 3.8x
$13,416 // 12.5x
$10,535 // 16.1x
$237 // 11.2x
$91,942 // 21.5x $1,054 // 6.6x
$16,981 // NM $735 // NM
$11,619 // 20.2x $623 // 13.2x
$566 // NA
$5,738 // 9.2x
$817 // 9.6x
$2,052 // 8.7x
$850 // 6.0x
$246 // 12.9x
44
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PRESENTATION
For the purposes of this notice, this presentation (the
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follow, its contents including the information forming part thereof or
referred to in the Presentation, the oral presentation of the pages
and slides by Capital Appreciation Limited ("CAPPREC") its
officers, directors, employees and/or advisers, any question-and-
answer session that follows that oral presentation, hard copies of
this document and any materials and/or information (in whatever
form) distributed at, or in connection with, that oral presentation. By
attending the meeting at which the Presentation is made, or by
reading the Presentation slides, you will be deemed to have (i)
agreed to all of the following restrictions and made the following
undertakings; and (ii) acknowledged that you understand the legal
and regulatory sanctions attached to the misuse, disclosure or
improper circulation of the Presentation.
This Presentation is provided to you solely for information purposes
and does not constitute, and may not be relied on in any manner
as, legal, tax or investment advice and/or an investment
recommendation.
This Presentation is not directed to, or intended for distribution to or
use by, any person or entity that is a citizen or resident of, or
located in, any locality, state, country or other jurisdiction where
such distribution or use would be contrary to law or regulation or
which would require any action (including registration or licensing)
within such jurisdiction for such purpose.
This Presentation is not, and should not be construed so as to
constitute, an offer of securities for sale or acquisition in any
jurisdiction, including in the United States, Canada, Australia or
Japan.
This Presentation does not constitute or form part of, and should
not be construed as, an advertisement, invitation, solicitation and/or
offer to sell, issue, purchase or subscribe for, any shares and/or
securities in any jurisdiction, or an inducement to enter into
investment activity. This Presentation does not constitute an offer to
the public for the sale of or subscription for, or an advertisement or
the solicitation of an offer to buy and/or subscribe for, securities as
defined in the Companies Act, 71 of 2008 ("the Act") or otherwise
and will not be distributed to any person in South Africa in any
manner which could be construed as an offer to the public in terms
of the Act. Furthermore, this Presentation does not constitute an
advertisement or a prospectus registered and/or issued under the
Act.
The information contained herein has been prepared using
information available to CAPPREC at the time of preparation of this
Presentation. External or other factors may have impacted on the
business of CAPPREC and the content of this Presentation, since
its preparation. In addition all relevant information about CAPPREC
may not be included in this Presentation.
The information in this Presentation has not been independently
verified. No representation or warranty, expressed or implied, is
made as to the accuracy, completeness or reliability of the
information contained herein and no reliance should be placed on
such information.
Neither CAPPREC, its officers, directors, employees nor any of its
advisers, connected persons or any other person accepts any
liability for any loss howsoever arising, directly or indirectly, from
this Presentation or its contents.
This Presentation contains forward-looking statements, including in
relation to the prospects of CAPPREC, which include all statements
other than statements of historical facts, including, without
limitation, any statements preceded by, followed by or including the
words “targets”, “believes”, “expects”, “aims”, “intends”, “may”,
“anticipates”, “would”, “could” or similar expressions or the negative
thereof. Forward-looking statements by their nature involve known
and unknown risks, uncertainties, assumptions and other important
factors because they relate to events and depend on
circumstances that might occur in the future whether or not outside
the control of CAPPREC.
Such factors may cause actual results, performance or
achievements to be materially different from future results,
performance, developments or achievements expressed or implied
by such forward-looking statements. Such forward-looking
statements are based on numerous assumptions regarding present
and future business strategies, prospects and the relevant
operating environment in the future.
Accordingly, no assurance is given that any such forward-looking
statements will prove to have been correct. These forward-looking
statements speak only as at the date of this Presentation.
CAPPREC expressly disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statements contained herein to reflect any change in its
expectations with regard thereto or any change in events,
conditions or circumstances on which any of such statements are
based.
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