1

For the year ended

31 March 2020

FULL YEAR RESULTS PRESENTATION

2

OUTLINE

Introduction

Highlights for the period

The opportunity

Financial performance

About our investments

Prospects

1

2

3

4

5

6

3

CAPITAL APPRECIATIONWe are a financial technology company

that seeks to serve or partner with

established and emerging financial

institutions and other large corporates

PAYMENTS & PAYMENT

INFRASTRUCTURE

SOFTWARE &

SERVICES

CTA ENTERPRISE

DEVELOPMENT FUND

4

RESPONSE TO COVID-19

Group companies were classified as

essential services and were fully

operational during “Level 5 Lockdown”

ORGANISATIONAL RESPONSE

Our team’s health was our first priority

Remote work of all non-essential staff

Essential staff had protective gear and

we implemented social distancing

Regular decontamination of work area

All staff remained employed

All suppliers paid on time

OPERATIONAL RESPONSE

Client service was our priority

Prior disaster preparedness and

infrastructure investment paid

dividends

All services continued uninterrupted

Used our expertise to help Government

address the crisis – GovChat led

initatives

5

MACRO ENVIRONMENT

All sectors of economy impacted

Consumer confidence shattered

Serious unemployment crisis

Non-essential retail impacted markedly,

slow recovery

Many small businesses may not reopen

SILVER LINING AND OPPORTUNITY

Technology solutions exist to address

many key issues that have arisen

- Social distancing

- Remote work

- Remote customer engagement

- Remote learning

Era of digitalisation has been yanked

forward and likely to accelerate

Increased impetus to reduce cash

transactions

Increased focus on financial inclusion

IMPACT OF COVID-19Long-term implications are still

unknown

66

CAPITAL APPRECIATION’S POSITIONING

While challenges will undoubtedly exist

and operating conditions will be tough,

CAPPREC’s business is resilient

CAPPREC well capitalised

Experienced management team

Client exposure mostly larger, more resilient businesses

Manageable exposure to “at risk” businesses

Deep domain expertise in “high demand” areas

Accelerating need for economy to digitalise

Asset light business model with efficient working capital

7

HIGHLIGHTS

8

OPERATIONALACCOMPLISHMENTS

Proud to be associated with all major

SA banks as well as many other banks

and financial institutions, retailers and

corporates

Growth continues across all business

units with expanded and enhanced

client relationships

32% increase in number of terminals

in the hands of clients

• More than 185 000 terminals

• Good pipeline

• Scale operator with market share

gains

Concluded ISO and Aggregator

Agreement with Absa to complement

ISO and Aggregator Agreement with

Nedbank

Synthesis expands into new

verticals

Additional Amazon Web

Services (AWS) certifications

and accreditations

Synthesis a key launch partner

for launch of SA’s region

B-BBEE ratings maintained at Level 3

and will look to enhance ratings in

coming year

Expanded international service

offerings across the Group

Launched GovChat Platform...

...directed resources to assist

Government with COVID-19 response

• Dept of Social Development – SRD

Grant

• Dept of Health – Screening, Test

Facility Locator and Symptom

Monitoring tool

9

GROUP FINANCIAL HIGHLIGHTS

Fiscal 2020 -

Year Ended 31 March 2020

EBITDA R 204.7m

Trading profit R 206.1 m

Profit after tax R 149.8 m

Profit

Revenue R 701.2 m

Revenue

Payments Division R 506.2 m

Services Division R 195.0 m

29.1%

19.0%

20.2%

15.4%

7.7%

41.5%

EPS 11.24 cents

Dividends 5.00 cents

Earnings & Dividends

Capitalisation & Cash resources

Equity R 1 309.0 m

Available cash per share 39 cents

Cash available for investment R 505.1 m

17.6%

34.9%

Noteworthy observations

Cash conversion – 100% of Trading Profit

Cash balances is after cash outflows of more than

R225 million on non operational items

Items impacting results

Specific Share Repurchase and other related

transactions concluded in September 2019

Unrealized gain on open foreign exchange contract

HEPS 10.67 cents 28.1%

1010

DIVISIONAL CONTRIBUTION

REVENUE

Group Up 15.4%

Headcount grew by 68 people

across the group, up 25%

80.4%

FY19 FY20

Payments

Services

72.2%

19.6%

27.8%

EBITDA

Group Up 29.1%

79.2%

FY19 FY20

Payments

Services

75.0%

20.8%

25.0%

+ 4

1.5

%+

7.7

%

+ 2

4.1

%+

19

.6%

11

PAYMENTSHIGHLIGHTS

✓ More than 185 000 terminals in hands of clients, up 32%

✓ Continued to gain market share

✓ Annuity based Estate Management fees up 56%

✓ Strong pipeline

✓ Expanded portfolio of transaction solutions

✓ Enhanced capability of solutions

✓ Android solutions warmly received

✓ Increased operational capacity

12

SERVICESHIGHLIGHTS

✓ Strengthened relationship with existing clients

✓ New blue-chip client relationships established

✓ Secured additional AWS accreditation

✓ Continued to cement AWS leadership

✓ Diversified revenue stream

– New verticals and geographies

– Academy

– Data Science

✓ Increased operational capacity

✓ Additional partnerships with complementary technology

platforms and solutions

✓ AWS SA-based cloud region launched April 2020

13

GOVCHATPLATFORM LAUNCHED

A citizen-government

engagement platform

in cooperation with

COGTA

Platform

development being

done by Synthesis

Effective 1 March 2020

Available online,

through FB Messenger,

WhatsApp and USSD

> 80 million messages transmitted

> 2.5 million unique users

14

GOVCHAT RESPONSE TO COVID-19Screens applicants and onboards

potential “Social Relief of Distress”

(SRD) grant applicants, arguably one of

the largest digitalisation initiatives in

grant programmes across Africa

Department of Social Development

“Use case” specific

functionality

developed and

tested on existing

platform within a

week

Launched 11 May

2020

15

GOVCHAT RESPONSE TO COVID-19

Diverted resources to open Platform to

address Government’s urgent needs in

fighting the pandemic

Department of Health

Screening tools, symptom tracking, testing facility referrals, test

result notification, recent contact identification and notification,

health form onboarding

Live but not officially launched - >25 000 surveys already

16

THEOPPORTUNITY

17

Cost to serve

clients

Availability of

service

Nature of service

offered

Inclusive service

Consumer

demand pullTech Big data Regulation

New entrant

banks and

emerging

financial services

companies

Incumbent banks

and established

financial service

providers

Retailers

Telecom and

other consumer-

facing services

companies

COMPELLINGSECTOROPPORTUNITIES

We have an opportunity to disrupt the business banking market and

improve the way in which businesses bank in South Africa. We will continue

to make use of technology to understand our clients better and further

improve credit quality and client experience.

- Capitec 2020

Digital increasingly important in

a post COVID-19 world

18

AWS CAPE TOWN REGION – NOW LIVE!

23rd AWS region in the

world and the first in

Africa, comprising 3

Availability Zones

50+ AWS services

readily available

Enables compliance with

the Protection of

Personal Info Act (POPI)

Data sovereignty

concerns eliminated

Support for low latency

workloads

As a leading AWS partner Synthesis is well positioned to

benefit from this launch

Synthesis and GovChat were Key

“Launch Partners”

1919

AWS is clear market leader generating $10.2 billion in

revenue in Q1 ’20, up 33% on prior year

Source: Gartner, Goldman Sachs, Insider Inc.

PUBLIC CLOUDMARKET

Market share of global providers

20

Source: BMIT SA Cloud Computing Overview & Market Sizing 2019

R millions

CLOUD ADOPTIONIN SOUTH AFRICAIDC predicts cloud services will

generate more than 100 000 net new

jobs by 2022

CLOUD ADOPTIONSA CLOUD COMPUTING

MARKET SIZING ESTIMATE

21

Source: Flexera 2020 State of the Cloud ReportNote, excludes responses where no change stated; SMB is small or medium businesses

COVID IMPACT:GLOBAL PLANNED CLOUD USAGEMore than 50% of respondents state that

cloud usage will be higher than initially

planned

Total

Enterprise

SMB

2% 8% 31% 26%

2% 9% 29% 30%

2% 4% 37% 13%

22

Source: IDC COVID-19 Market Impact Survey

COVID IMPACT:SA TECH SPENDING PRIORITIESCurrent vs Pre-Covid

Digital employee experience: digital workspaces, collaboration…

Telecom services: fixed and mobile data packages

Devices (laptops, smartphones, tablets, etc…)

Security: architecture, governance, skills

Public Cloud Software-as-a-service (SaaS)

Mobile apps, mobile device mgmt. etc.

Big Data & Analytics

Public Cloud infrastructure-as-a-service

Robotic process automation (RPA)

Disaster recovery: own or 3rd party DC

Applications transformation: DevOps, containerisation

Enterprise networks: WAN optimization, SDN etc.

Artificial intelligence (AI)

Private / hybrid clouds

Infrastructure (datacentre hardware, servers, storage,…

Internet of Things (loT)

23

Source: IDC Industry & Company Size Spending Guide

COVID IMPACT: SA IT SPEND BY VERTICAL

Finance

Government

Communications

Manufacturing

Professional & Personal Services

Retail & Wholesale

Resource Industries

Utilities

Healthcare

Education

Transportation

Siz

eS

mall

Big

$2.1B

$1.6B

$1.5B

$1.1B

$790M

$744M

$705M

$494M

$482M

$357M

$228M

2019 IT

Spendin

g S

ize

24

COVID IMPACT ON PAYMENTS

Cash is increasingly unwelcome, limit

spread of COVID-19

Increasing interest by merchants in

digital payment

Merchants increasingly interested in

Value Added functionality

Contactless payment – promoted by

WHO

Mobile payment

QR Code payment

eCommerce

Technology is solution to financial

inclusion

25

ABOUT OURINVESTMENTS

26

CONSISTENTEXECUTIONSTRATEGY

Strategy has delivered substantial growth

and our objectives remain unchanged

since initially formulated

PARTNER INNOVATE EXECUTE

Work with financial institutions

Create ecosystems for

collaboration

B2B

B2B2C

Deliver solutions to help clients

realise their strategy

Focus on infrastructure

State of the art proprietary

technology

Entrepreneurial culture

Hardware agnostic

Add value

Integrate seamlessly with

legacy systems

Grow market

Service excellence

Alleviate pain points

User experience

Create ecosystem

Act as a innovation catalyst

for clients

Engender trust

27

PAYMENTS &PAYMENT INFRASTRUCTURE

Enables banks and corporates to

extract additional value and

differentiate at the point of acquiring

PROPRIETARY PLATFORM

Unique, proprietary technology platform enabling rapid development and

implementation of customised corporate solutions across a diverse range of

sectors

BLUE CHIP CLIENTS

Provide and operate payment and processing solutions for leading brands and

International Banks

END-TO-END

Design, develop, implement and manage innovative, end-to-end solutions thereby

enhancing and strengthening the relationships between banks, corporates and their

clients

COMPREHENSIVE OFFERINGS

Available on a turn-key all-inclusive basis or à la carte

UNIVERSAL ACQUIRING

Pioneer of “Universal Acquiring” by supporting one uniform infrastructure for

financial and non‐financial transactions

28

SUBSTANTIALGROWTH IN TERMINALESTATE

Terminals at period end, in thousands

• Number of terminals in clients’ hands grew 32% YoY,

56% 3yr CAGR

• Includes terminals subject to rental agreements

TOTAL TERMINAL ESTATE

OWNED BY CLIENTS

• Number of terminals delivered to clients grew by 39%

YoY, 77% 3yr CAGR

• Paid for at time of delivery / prior to deployment

• Start to generate recurring revenue once activated

ACTIVE – IN MARKET

• Number of terminals in use grew by 42% YoY, 62% 3yr

CAGR

• Includes terminals subject to rental contracts

• Rentals may be renewed upon expiry or replaced with

owned terminals

AWAITING DEPLOYMENT

• New terminals, once imported, are prepared for client and

readied for deployment

• Represents prospective recurring revenue once activated

• Includes ”rotating stock” for backup and replacement

32 4053

7795

117135

April'17

Sep'17

Mar'18

Sep'18

Mar'19

Sep'19

Mar'20

3248

76

103128

146

178

April'17

Sep'17

Mar'18

Sep'18

Mar'19

Sept'19

Mar'20

1622

38 40 4133 30

April'17

Sep'17

Mar'18

Sep'18

Mar'19

Sep'19

Mar'20

4960

92

118140

154

185

April'17

Sep'17

Mar'18

Sep'18

Mar'19

Sep'19

Mar'20

29

EXPANDED DEVICE PORTFOLIODiverse range, multiple platforms,

varied price points and comprehensive

use casesProprietary – Tertra/Telium

World leaders in payment devices and technology

30

WELCOME HALO SMART PAYMENTSContactless payments on any

Android device – without any

additional hardware

Halo has obtained EMV L2

Certification for Mastercard

and VISA

Developed by Synthesis

Contactless

Cards

Mobile

Wallets

Gadget

Wallets

Halo is a software application that enables contactless payment acceptance on any

NFC-enabled Android device. Supports contactless cards and mobile wallets such as

Samsung Pay. Available as an SDK for App integration.

TAP ON PHONE BENEFITS

Affordable – No additional hardware needs to be purchased

Simple – No training or device maintenance required

Eco-friendly – No paper or consumables

Safe – Contactless payments are more hygienic (as per WHO)

Secure – All payments are authorised in real-time

Supported Card Schemes

Partnering with Nedbank to introduce

Tap on Phone to South Africa

31

AFRICAN RESONANCE INVESTMENT IN CAPACITY

Surge capacity exceeded

10 500 units

AVERAGE MONTHLY TERMINALS DISPATCHED

1 600

3 900

5 900

7 300

CY 2017 CY 2018 CY 2019 Last 6 months

32

AFRICAN RESONANCE OPERATIONAL METRICS

CALL CENTRE - AVERAGE DURATION OF CALLS (in minutes)

CALLS RESULTING IN TERMINAL SWAP OUT (average across clients)

0%

5%

10%

15%

20%

25%

Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20

00:00

02:00

04:00

06:00

08:00

10:00

Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20

Increased capacity requried to

maintain high levels of availibility and

service levels

More than 85% of all issues

resolved remotely in less than 15

minutes

33

EVOLUTION INPAYMENT SERVICES OFFERING

Dashpay’s progress continues

✓ Merchant terminal count

increased by 58%

✓ Transaction related

revenue increased by

40%

✓ ISO and Aggregator

relationships concluded

with Nedbank and Absa

✓ Enhanced service offering

✓ Remote Terminal

Management

System (RTMS)

✓ Vouchers

✓ Loyalty

✓ eCommerce

✓ Enhanced transacting

platform

MAY ‘17 NOV ’18

R500m

R1.4bn

R2.2bn

~ 10x in

3 years

180%

57%

OCT ‘19APR‘19

R2.9bn

31%

GROSS Tx VALUE

MAR ‘20

R4.9bn

69%

34

SOFTWARE &SERVICES SEGMENT

Leading provider of technology products

and solutions within the financial services

industry

BLUE-CHIP CLIENTS

Absa, Afgri, Capitec, Investec,

Nedbank, Standard Bank, Woolworths

Financial Services and others

CLIENT CENTRIC

Delivering the highest business

value with a strong service ethic

THOUGHT LEADERS

Acquiring and retaining the best

software development skills

FOCUSED

Focus in the financial

services sector

EXPERIENCED

Highly innovative team with a track

record of only successful delivery

STRATEGIC RELATIONSHIPS

Key partnerships with Amazon’s

AWS, the top-rated provider of

cloud services globally

35

OPERATING UNITS WITHIN SYNTHESIS

SYNTHESIS LABS

Artificial intelligence, blockchain,

machine learning

SYNTHESIS ACADEMY

Technical and cloud training tailored to

organisational objectives

Cloud transformation to assist the

Enterprise in becoming cloud-ready,

execute mass migrations and harness

the benefits of public cloud platform

First AWS Advanced Consulting

partner in MEA

Delivering exceptional

end-user client experience,

web and mobile touchpoints

for financial services

institutions while maintaining

information security and

transactional integrity

Integration to enable

regulatory reporting

solutions for SARS (tax)

and SARB (balance of

payments), payment

processing and exchange

connectivity

DIGITAL

CHANNELS

CLOUD PLATFORM INTEGRATION

PRODUCTS

• Data Intelligence is a

critical to drive business

success

• Our team of Machine

Learning Engineers and

Data Scientists are

enabling clients to become

truly Data-Driven

• Strategic use of data leads

to higher customer

satisfaction and improved

competitiveness

• 24 x 7 x 365 support

and management of

high availability Cloud

and hyper-scale

infrastructure

• Remote upkeep and

strategic improvements

to alleviate client

operational concerns

• Service contracts are

long term and annuity in

nature

DATA &

ANALYTICS

MANAGED

SERVICES

(MSP)

3636

Financial Services Competency

DevOps Competency

Well Architected Framework

Competency

Channel Partner

SaaS Partner

CAPE TOWN REGION LAUNCHINITIATIVE

Synthesis develops suite of

“Launch Products”

3737

PRIOR CASESTUDIES

Use of AI and

machine learning in

brand management

24/7/365 cloud managed

infrastructure services

globally

RegTech

&

Customer

Engagement

Financial services in

agricultural sector

Outcomes-driven

e-Learning LMS-based

training to client

organisations

SYNTHESIS ACADEMY

RegTech

Platform

Solution

3838

CRACKING MACHINE

LEARNING TO

SPEED UP CLIENT

SERVICES

Machine Learning and Robotics

address the challenge of email routing

– enhanced capabilities operating 24/7

ensures speedy response times

‘What struck me is that

Synthesis used design

thinking to truly understand

what the problem was. In a

very short time they created

a prototype, tested it with

users and then adapted it.

The solution they created

revolved around genuine

client satisfaction and not

just completing a task, and

that worked for us”, says

Bandyopadhyay.

Indranil Bandyopadhyay,

Head of Business IT

Enablement for Nedbank

Insurance

39

“UNATHI” –GOVCHAT’S NATURAL LANGUAGE CHATBOT

Rate over 60 000

Government spaces and

services provided

Hospitals, Police Stations, Post Office

branches, Home Affairs, Early

Childhood Centres…

Report on Municipal services

Water, refuse, potholes…

Identify local representatives

or traditional leaders

COVID-19 health tools

COVID-19 SRD grant

application management

...more to come...

Cloud native, hosted on AWS

Backend Dashboards

Issue Reporting

SRD Grant Applications by Province

4040

Fully “serverless” architecture

• No servers…at all!

• Cloud native architecture, fully

managed by AWS

• Easily replicated for other

geographies and use cases

Dynamic scalability

• Scales up to meet user demand,

and back down to save on costs

• Allows for a fixed cost per

interaction with close to zero

overheads

• A model that suits the smallest to

the largest population, true scale

AI-driven natural language experience

• Highly intuitive digital interface for

even the least sophisticated user

• Over the ubiquitous WhatsApp

messaging platform

• Ability to detect sentiment and learn

from prior interactions

GOVCHAT’S HYPER-SCALE DYNAMIC COST EFFECTIVE INFRASTRUCTURE First 3 days post launch, peaking

at ~600k messages per hour

The following 11 days, constant

usage peaking at ~150k per hour

SRD Use Case Platform Activity

41

FINANCIALPERFORMANCE

42

Revenue Growth – 8% YoY

6 Yr CAGR - 50%

EBITDA Growth – 20% YoY

6 Yr CAGR - 61%

FINANCIALPERFORMANCE

Payments & Payment Infrastructure

Division

44

.2

14

0.7 1

96

.1

20

2.9

41

5.1 4

69

.9 50

6.2

9.4 2

4.9

42

.1 77

.5

15

1.7

13

5.3

16

1.8

0

100

200

300

400

500

600

FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20

Revenue EBITDA

R million

43

41

.6

46

.1

51

.9

77

.6 93

.1

13

7.8

19

5.0

12

.6

15

.9

19

.8 29

.9

33

.9 43

.3 53

.8

0

50

100

150

200

250

FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20

Gross Revenue EBITDA

R million

FINANCIALPERFORMANCE

Software & Services Division

Revenue Growth

– 41% YoY

6 Yr CAGR – 29%

EBITDA Growth –

24% YoY

6 Yr CAGR – 27%

EBITDA is after expensing

additional ramp-up costs related

to AWS Cloud Migration projects,

the benefits of which will accrue

in subsequent periods

The benefit of last

year’s

expenditures is

visible in this

year’s growth

44

(R million) 31 March 2020 31 March 2019% increase /

(decrease)

Revenue 701.2 607.7 15.4%

Operating expenses 143.2 128.0 11.9%

EBITDA 204.7 158.6 29.1%

Trading profit 206.1 173.2 19.0%

Finance income 38.7 38.3 1.0%

Profit before taxation 206.0 173.8 18.5%

Profit after tax 149.8 124.6 20.2%

Normalised profit after tax 141.7 136.6 3.7%

Earnings per share (cents) 11.24 8.33 34.9%

Headline earnings per share (cents) 10.67 8.33 28.1%

Normalised headline earnings per share (cents) 10.63 9.13 16.4%

Cash earnings per share (cents) 11.12 10.06 10.6%

Number of shares in issue (millions) 1 310.0 1 555.0

Number of shares in issue, net of treasury shares

(millions)1 201.2 1491.4

Strong growth from all

divisions

Includes gain on sale of

Australia (R8.7m) and

unrealised profit on open

forward FX contract

(R14.6m)

Repurchased 45.1m

treasury shares

Total number of treasury

shares is 108.8m

After reversal of

amortisation of intangibles

arising from acquisitions,

unrealised profit on FX

contract and capital profit

related to sale of

Resonance Australia

Includes development of

new innovative products

and building of operating

capacity

245m ordinary shares

cancelled in September

GROUP SUMMARISED STATEMENT OF COMPREHENSIVE INCOME

45

(R million) 31 March 2020 31 March 2019 Growth

Payments & Payment Infrastructure division

Terminal rental income 32.5 79.3 (59.0%)

Maintenance and support service fees from terminals 115.4 73.9 56.0%

Sale of terminals 331.6 290.9 14.0%

Transaction related income from terminals 21.2 15.1 40.4%

Other revenue 5.5 10.7 (48.6%)

Total 506.2 469.9 7.7%

Software & Services division

Services and consultancy fees 153.0 102.2 49.8%

Licence and subscription fees 36.4 32.9 10.6%

Hardware 5.6 2.7 107.4%

Total 195.0 137.8 41.5%

Total revenue 701.2 607.7 15.4%

Geographic region

South Africa 679.9 594.2 14.4%

Rest of the world 21.3 13.5 57.8%

Total revenue 701.2 607.7 15.4%

Recurring income continues to increase and constitutes c.48.1% of total revenue in 2020 (2019: 47.4%)

DIVISIONAL REVENUE COMPOSITION

Aligned to growth of

deployed estate

AR rental contracts

reaching maturity replaced

by terminal sales

Growth in transaction

activity and deep VAS

solution uptake

Will continue to be a focus

in coming periods

Reflects material growth in

Cloud activities

46

(R million) 31 March 2020 31 March 2019

ASSETS

Goodwill 728.6 728.6

Intangible assets 61.8 62.3

Other non-current assets 60.7 72.2

Non-current assets 851.1 863.1

Cash and cash equivalents 505.1 611.2

Other current assets 91.6 70.3

Total assets 1 447.8 1 544.6

EQUITY AND LIABILITIES

Equity 1 309.0 1 447.1

Non-current liabilities 40.8 34.6

Current liabilities 98.0 62.9

Total equity and liabilities 1 447.8 1 544.6

NAV per share (cents) 109.0 97.0

Cash available per share (cents) 38.6 39.3

Available for investment

in organic growth and

acquisition opportunities

After using c.R225m in

cash during the year on

the Specific Share

Repurchase and open

market share repurchases

CONDENSED GROUP STATEMENT OF FINANCIAL POSITION

Uncomplicated Balance

Sheet

47

CASH FLOW (KEY FEATURES)

(R million) 31 March 2020 31 March 2019

Cashflow from operations 206.1 212.7

Proceeds from disposal of associate 35.0 -

Changes in working capital 23.8 51.7

Finance income 38.7 38.3

Acquisition of property, plant and equipment (17.8) (16.5)

Repurchase of 245 million ordinary shares (cancelled) (192.7)

Purchase of 45.1 million treasury shares (2019: 8.0 million) (33.9) (7.1)

Taxation paid (57.8) (62.3)

Dividends paid (57.8) (63.6)

Cash & cash equivalents at period end 505.1 611.2

Increased even with lower

cash balances

Effective asset

management

Total of 108.8 million

shares at an average price

of 76 cents per share

Resources to fund organic

growth and acquisitions

48

PROSPECTS

4949

• Accelerated growth in POS device estate as

penetration increases in banking as well as

SMME sector

• Introduction of new platforms will generate new

growth and open up new market segments

• New product pipeline

PAYMENTS & PAYMENT INFRASTRUCTURE SOFTWARE & SERVICES

• Strong and growing adoption of cloud-based

solutions

• Regulatory compliance requirements

• Further international expansion

• Significant opportunity in new technologies

• A broad range of organic as well as acquisitive growth opportunities available to CAPPREC

• Acquisition activity will depend on strategic fit as well as valuations

• Economic climate is impacting our clients and remain present in our planning

GROWTH OPPORTUNITIES

GENERAL PROSPECTSCapital Appreciation is well capitalised,

with the management skills and

technology to drive it’s growth strategy.

50

OUR INVESTMENTCASE – A STRONG FOUNDATION ON WHICH TO GROW

✓ Seasoned management team – been through prior tough business cycles

✓ Well-positioned in an industry with healthy organic growth prospects

✓ A trusted partner to a strong network of large financial institutions

✓ Clients are well capitalised and established

✓ Diversified customer base

✓ Clients already have a presence in Africa – providing the potential ability for

CAPPREC to expand regionally with them

✓ Well-established FinTech subsidiaries with strong track records

Innovation Quality execution Financial performance

✓ Subsidiaries have strong organic growth prospects and acquisition opportunities

✓ Strong Group balance sheet with adequate headroom for organic and acquisitive

growth

✓ Subsidiaries are highly cash generative

✓ Our products and services are targeted at mission-critical applications

51

T H A N K Y O U

5252

AEDO Authenticated early debit order

AI Artificial intelligence

ATM Automated teller machine

AWS Amazon Web Services

B2B Business to business

B2B2C Business to business to consumer

B-BBEE Broad-Based Black Economic Empowerment

Bn Billion

CAGR Compound annual growth rate

CAPPREC Capital Appreciation Limited

Cash EPS Cash flow from operations, less taxation paid, divided by

weighted average number of shares in issue

CLC Code line clearing

CRM Customer relationship management

EBIT Earnings before interest and tax

EBITDA Earnings before interest, tax, depreciation and

amortisation

EFT Electronic fund transfer

EMV Europay, Mastercard, Visa

EPS Earnings per share

FinTech Financial technology

FY Fiscal year

GTV Gross transaction value

HEPS Headline earnings per share

IaaS Infrastructure as a Service

ISO Independent sale organisation

IT Information technology

M Million

NA Not available

NAEDO Non-authenticated early debit order

NAV Net asset value

NFC Near field communication

NHEPS Normalised headline earnings per share

NM Not meaningful

PaaS Platform as a Service

POS Point of sale

R Rand

R&D Research and development

REIT Real Estate Investment Trust

RTC Request to credit

SA South Africa

SaaS Software as a Service

SARB South African Reserve Bank

SARS South African Revenue Services

SDK Software Development Kit

SME Small and medium enterprise

Tx Transaction

US$ United States Dollar

ZAR South African Rands

GLOSSARY