Seguridad Mania.com - España y América Latina

JOHANNESBURG, SOUTH AFRICA -- (Marketwired) -- 08/28/14 -- Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS)(JSE: NT1) today released results for the fourth quarter and full-year fiscal 2014.

Summary Financial Metrics

                                        Three months ended June 30,
                               ---------------------------------------------
                                                    % change in  % change in
                                    2014      2013          USD          ZAR
                               --------- --------- ------------ ------------
(All figures in USD '000s
 except per share data)
Revenue                          182,753   117,882          55%          76%
GAAP net income                   28,584     8,285         245%         291%
Fundamental net income (1)        44,386    12,598         252%         301%
GAAP earnings per share ($)         0.59      0.18         223%         266%
Fundamental earnings per share
 ($) (1)                            0.91      0.28         225%         275%
Fully-diluted shares
 outstanding ('000's)             48,855    45,713           7%
Average period USD/ ZAR
 exchange rate                     10.42      9.19          13%

                                            Year ended June 30,
                               ---------------------------------------------
                                                    % change in  % change in
                                    2014      2013          USD          ZAR
                               --------- --------- ------------ ------------
(All figures in USD '000s
 except per share data)
Revenue                          581,656   452,147          29%          54%
GAAP net income                   70,111    12,977         440%         545%
Fundamental net income (1)       100,539    34,822         189%         245%
GAAP earnings per share ($)         1.51      0.28         430%         532%
Fundamental earnings per share
 ($) (1)                            2.16      0.76         184%         238%
Fully-diluted shares
 outstanding ('000's)             46,603    45,678           2%
Average period USD/ ZAR
 exchange rate                     10.40      8.71          19%

(1) Fundamental net income and earnings per share are non-GAAP measures and are described below under "Use of Non-GAAP Measures-Fundamental net income and fundamental earnings per share." See Attachment B for a reconciliation of GAAP net income to fundamental net income and earnings per share.

Factors impacting comparability of our Q4 2014 and Q4 2013 results

--  Unfavorable impact from the strengthening of the US dollar against the
    ZAR: The US dollar appreciated by 13% against the ZAR during Q4 2014,
    which negatively impacted our reported results;
--  $26.6 million recovery of expenses and 2013 implementation costs: Our
    SASSA contract implementation is complete. In Q4 2014, we received
    approximately $26.6 million, or approximately $19.1 million, net of tax,
    from SASSA related to the recovery of additional implementation costs
    incurred during the beneficiary re-registration process in fiscal 2012
    and 2013. Q4 2013 results include implementation-related expenditure,
    including smart card costs, of approximately $9.0 million;
--  Fair value charge resulting from issue of equity instruments pursuant to
    BEE transactions: The fair value non-cash charge of $11.3 million
    related to our BEE transactions adversely impacted our reported results
    during Q4 2014;
--  Increased contribution by KSNET: Our results were positively impacted by
    growth in our South Korean operations;
--  Growth in financial services: The expansion of our financial services
    offering resulted in higher year-over-year revenue and operating income
    from UEPS-based lending during Q4 2014;
--  Ad hoc hardware sales in fiscal 2014: We sold more terminals and cards
    during Q4 2014 as a result of ad hoc orders received from our customers;
    and
--  Higher revenue resulting from an increase in low-margin prepaid airtime
    and electricity sales: Our revenue has increased as a result of the
    growth of our prepaid airtime offering during Q4 2014, which has lower
    margins compared with our other South African businesses.

Comments and Outlook

"Our results once again demonstrate our ability to implement large and complex national projects efficiently, and to rationalize our cost structure in order to drive margin improvement. We can achieve such results due to our superior technological solutions and their ability to adapt seamlessly to the ever-changing needs of our markets and our customers. More importantly, we have been able to focus our attention on our growth strategy targeting international markets. This strategy is mobile- and payment-centric, and is designed to deliver solutions that incorporate a number of "killer" applications in the space of money transfers, loyalty programs, electronic wallets and secure CNP payments," said Dr. Serge Belamant, Chairman and CEO of Net1. "Our new streamlined operational teams are ready for significant expansion not only locally but globally as well. This new focused approach will allow us to diversify our risk profile from a geographical, currency and customer point of view. I am delighted with our personnel and their commitments, and strongly believe that we are now entering a period of sustained growth that will result in continued shareholder value creation," he concluded.

"I am proud of our financial achievements in fiscal 2014, which have provided the catalyst for our expected growth trajectory in fiscal 2015," said Herman Kotze, Chief Financial Officer of Net1. "For fiscal 2015, we expect fundamental earnings per share of at least $1.92, assuming a constant currency base of ZAR 10.40/$1 and a share count of 46 million shares. Our fiscal 2014 fundamental earnings per share included approximately $0.40 related to the recovery of our SASSA implementation costs, which will not recur in fiscal 2015," he concluded.

Transactions in preparation for any new potential SASSA tender

On August 27, 2014, we entered into a sale and subscription agreement with Business Venture Investments No 1567 (Proprietary) Limited (RF) ("BVI"), one of our BEE partners, in preparation for any new potential SASSA tender. Pursuant to the sale and subscription agreement: (i) we repurchased BVI's remaining 1,837,432, shares of Net1 common stock for approximately $9.2 million in cash (translated at exchange rates prevailing as of August 27, 2014) and (ii) BVI has subscribed for new ordinary shares of CPS representing approximately 12.5% of CPS' ordinary shares outstanding after the subscription for $1.4 million in cash (translated at exchange rates prevailing as of August 27, 2014). In connection with transactions described above, the CPS shareholder agreement that was negotiated as part of the original December 2013 Relationship Agreement became effective.

Change to internal reporting structure and restatement of previously reported information

In June 2014 we streamlined our operating structure and accordingly our reporting segments have been consolidated from five to three: South African transaction processing, International transaction processing and Financial inclusion and applied technologies. Previously reported information has been restated. For further information refer to Note 23 to our 2014 annual financial statements contained in our report on Form 10-K filed with the United States Securities and Exchange Commission on August 28, 2014. Attachment D presents our quarterly operating segment revenue and operating income results for fiscal 2014, 2013 and 2012.

Results of Operations by Segment and Liquidity

Our operating metrics will be updated and posted on our website (www.net1.com).

South African transaction processing

The South African transaction processing segment consists mainly of pension and welfare benefit distribution services provided to the South African government, and transaction processing for retailers, utilities, medical-related claim service customers and banks.

Segment revenue was $88.3 million in Q4 2014, up 52% compared with Q4 2013 in USD and up 72% on a constant currency basis. In ZAR, increase in segment revenue was primarily due to the recovery of $26.6 million in implementation costs related to our SASSA contract and more low-margin transaction fees generated from beneficiaries using the South African National Payment System. Segment operating income margin was 44% and (0)%, respectively, and increased primarily due to the recovery of SASSA implementation costs. Segment operating income margin excluding the recovery of implementation costs was 20% for Q4 2014.

International transaction processing

The International transaction processing segment consists mainly of payment processing services to merchants and card issuers in South Korea. The segment also generates transaction fee revenue from transaction processing of UEPS-enabled smartcards in Botswana and transaction processing of medical-related claims in the United States. KSNET contributes the majority of our revenues and operating income in this segment. Segment revenue was $42.2 million in Q4 2014, up 17% compared with Q4 2013 in USD and 32% on a constant currency basis. Revenue increased primarily due to increased transaction processing activities in South Korea during Q4 2014. Operating income in Q4 2014 was higher due to an increase in revenue contribution from KSNET, which was partially offset by ongoing losses related to our XeoHealth launch in the United States, as well as ongoing competition in the South Korean marketplace. Segment operating income margin in Q4 2014 and Q4 2013 was 16% and 15%, respectively.

Financial inclusion and applied technologies

The Financial inclusion and applied technologies segment includes our smart card accounts, lending and life insurance businesses. This segment also includes the economics from merchants and card holders using our merchant acquiring system, the sale of prepaid products (electricity and airtime) and the sale of hardware and software.

Segment revenue was $64.1 million in Q4 2014, up 116% compared with Q4 2013 in USD and 146% on a constant currency basis, and increased primarily due to higher mobile-based prepaid airtime sales, an increase in the number of UEPS-based loans as we rolled out our product nationally, an increase in intersegment revenues and more ad hoc terminal and smart card sales. Segment operating income margin was 28% and 48%, respectively, and decreased primarily as a result of more low-margin prepaid airtime and hardware sales.

Corporate/eliminations

Corporate/eliminations includes our head office cost center, the amortization of acquisition-related intangible assets and once-off events, including in 2014, the equity instrument charges related to our BEE transactions, and the net loss for the deconsolidation of subsidiaries and businesses.

The increase in our corporate expenses resulted primarily from the non-cash charge related to the equity instruments issued pursuant to our BEE transactions, increases in general corporate audit fees, executive emoluments and other corporate head office-related expenses, all of which were partially offset by lower US government investigation and US lawsuit expenses.

Cash flow and liquidity

At June 30, 2014, we had cash and cash equivalents of $58.7 million, up from $53.7 million at June 30, 2013. The increase in our cash balances from June 30, 2013, was primarily due to higher cash generated from our core business and the recovery of implementation costs from SASSA, which was partially offset by higher corporate tax payments, the expansion of our UEPS-based lending business, acquisition of terminals to maintain and expand our South Korean business activities, the repayment of a portion of our South Korean debt and acquisition of substantially all of the remaining shares of KSNET that we did not already own.

Excluding the impact of interest received, interest paid under our South Korean debt, taxes and recovery of implementation costs from SASSA, the decrease in cash from operating activities resulted from the expansion of our UEPS-based lending book, offset by cash inflows from improved trading activity and the substantial elimination of implementation costs in fiscal 2014. Capital expenditures for Q4 2014 and 2013 were $6.6 million and $5.6 million, respectively, and have increased primarily due to the acquisition of more payment processing terminals in South Korea.

Use of Non-GAAP Measures

US securities laws require that when we publish any non-GAAP measures, we disclose the reason for using the non-GAAP measure and provide reconciliation to the directly comparable GAAP measure. The presentation of fundamental net income and fundamental earnings per share and headline earnings per share are non-GAAP measures.

Fundamental net income and fundamental earnings per share

Fundamental net income and earnings per share is GAAP net income and earnings per share adjusted for (1) the amortization of acquisition-related intangible assets (net of deferred taxes), (2) stock-based compensation charges and (3) unusual non-recurring items, including the amortization of KSNET debt facility fees, transaction-related costs and US government investigations-related and US lawsuit expenses; as well as in fiscal 2014, the equity instruments charged related to our December 2013 BEE transactions and the net loss on deconsolidation of subsidiaries and business, net of tax. Management believes that the fundamental net income and earnings per share metric enhances its own evaluation, as well as an investor's understanding, of our financial performance. Attachment B presents the reconciliation between GAAP and fundamental net income and earnings per share.

Headline earnings per share ("HEPS")

The inclusion of HEPS in this press release is a requirement of our listing on the JSE. HEPS basic and diluted is calculated using net income which has been determined based on GAAP. Accordingly, this may differ to the headline earnings per share calculation of other companies listed on the JSE as these companies may report their financial results under a different financial reporting framework, including but not limited to, International Financial Reporting Standards.

HEPS basic and diluted is calculated as GAAP net income adjusted for the profit on sale of property, plant and equipment, and, in 2014, the net loss on deconsolidation of subsidiaries and asset group, net of related tax effects. Attachment C presents the reconciliation between our net income used to calculate earnings per share basic and diluted and HEPS basic and diluted and the calculation of the denominator for headline diluted earnings per share.

Conference Call

We will host a conference call to review Q4 2014 results on August 29, 2014, at 8:00 Eastern Time. To participate in the call, dial 1-855-481-5362 (US and Canada), 0808-162-4061 (U.K. only) or 0-800-200-648 (South Africa only) ten minutes prior to the start of the call. Callers should request "Net1 call" upon dial-in. The call will also be webcast on the Net1 homepage, www.net1.com. Please click on the webcast link at least ten minutes prior to the call. A webcast of the call will be available for replay on the Net1 website through September 21, 2014.

Fiscal 2015 earnings call dates

We expect to host quarterly conference calls to review our fiscal 2015 quarterly results in accordance with the schedule provided in the table below:

Conference call to review quarter ended:           Tentative date
-------------------------------------------------- -------------------------

September 30, 2014 (Q1, 2015)                      November 7, 2014
December 31, 2014 (Q2, 2015)                       February 6, 2015
March 31, 2015 (Q3, 2015)                          May 8, 2015
June 30, 2015 (Q4, 2015)                           August 21, 2015

The dates provided above are tentative and we will confirm the final dates and dial-in details closer to the quarterly conference call date.

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System ("UEPS"), to facilitate biometrically secure, real-time electronic transaction processing to unbanked and under-banked populations of developing economies around the world in an online or offline environment. Net1's UEPS/EMV solution is interoperable with global EMV standards that seamlessly permit access to all the UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.

Net1 operates market-leading payment processors in South Africa and the Republic of Korea. In addition, Net1's proprietary MVC technology offers secure mobile payments and banking services in developed and emerging countries.

Net1 has a primary listing on NASDAQ and a secondary listing on the Johannesburg Stock Exchange.

Forward-Looking Statements

This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that 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.

                        NET 1 UEPS TECHNOLOGIES, INC.
                    Consolidated Statements of Operations
                                    Unaudited                  (A)
                            ------------------------ -----------------------
                               Three months ended           Year ended
                            ------------------------ -----------------------
                                     June 30,                June 30,
                             -----------------------  ----------------------
                                    2014        2013        2014        2013
                             -----------  ----------  ----------  ----------
                               (In thousands, except   (In thousands, except
                                     per share data)         per share data)

REVENUE                     $    182,753 $   117,882 $   581,656 $   452,147

EXPENSE

  Cost of goods sold, IT
   processing, servicing
   and support                    72,641      53,045     260,232     196,834

  Selling, general and
   administration                 46,156      41,698     168,072     191,552

  Equity instruments issued
   pursuant to BEE
   transactions                   11,268           -      11,268           -

  Depreciation and
   amortization                   10,041       9,548      40,286      40,599

                             -----------  ----------  ----------  ----------
OPERATING INCOME                  42,647      13,591     101,798      23,162

INTEREST INCOME                    4,824       3,888      14,817      12,083

INTEREST EXPENSE                   1,761       1,849       7,473       7,966
                             -----------  ----------  ----------  ----------

INCOME BEFORE INCOME TAX
 EXPENSE                          45,710      15,630     109,142      27,279

INCOME TAX EXPENSE                17,260       7,484      39,379      14,656
                             -----------  ----------  ----------  ----------

NET INCOME BEFORE EARNINGS
 FROM EQUITY-ACCOUNTED
 INVESTMENTS                      28,450       8,146      69,763      12,623

EARNINGS FROM EQUITY-
 ACCOUNTED INVESTMENTS                96         147         298         351
                             -----------  ----------  ----------  ----------

NET INCOME                        28,546       8,293      70,061      12,974

ADD (LESS) NET LOSS
 (INCOME) ATTRIBUTABLE TO
 NON-CONTROLLING INTEREST           (38)           8        (50)         (3)

                             -----------  ----------  ----------  ----------
NET INCOME ATTRIBUTABLE TO
 NET1                       $     28,584 $     8,285 $    70,111 $    12,977
                             -----------  ----------  ----------  ----------
                             -----------  ----------  ----------  ----------

Net income per share, in
 United States dollars
  Basic earnings
   attributable to Net1
   shareholders                    $0.59       $0.18       $1.51       $0.28
  Diluted earnings
   attributable to Net1
   shareholders                    $0.59       $0.18       $1.50       $0.28

(A) - Derived from audited
 financial statements

                        NET 1 UEPS TECHNOLOGIES, INC.
                         Consolidated Balance Sheets
                                              (A)                 (A)
                                            June 30,           June 30,
                                              2014               2013
                                      ------------------- ------------------
                                      ------------------- ------------------
                                           (In thousands, except share data)
                                   ASSETS
CURRENT ASSETS
  Cash and cash equivalents           $            58,672 $           53,665
  Pre-funded social welfare grants
   receivable                                       4,809              2,934
  Accounts receivable, net of
   allowances                                     148,067            102,614
  Finance loans receivable, net of
   allowances                                      53,124              8,350
  Inventory                                        10,785             12,222
  Deferred income taxes                             7,451              4,938
                                       ------------------  -----------------
    Total current assets before
     settlement assets                            282,908            184,723
      Settlement assets                           725,987            752,476
                                       ------------------  -----------------
        Total current assets                    1,008,895            937,199
PROPERTY, PLANT AND EQUIPMENT, net                 47,797             48,301
EQUITY-ACCOUNTED INVESTMENTS                          878              1,183
GOODWILL                                          186,576            175,806
INTANGIBLE ASSETS, net                             68,514             77,257
OTHER LONG-TERM ASSETS, including
 reinsurance assets                                38,285             36,576
                                       ------------------  -----------------
  TOTAL ASSETS                                  1,350,945          1,276,322
                                       ------------------ ------------------
                                       ------------------ ------------------
                                                   40,570
                                 LIABILITIES
CURRENT LIABILITIES
  Accounts payable                                 17,101             26,567
  Other payables                                   42,257             33,808
  Current portion of long-term
   borrowings                                      14,789             14,209
  Income taxes payable                              7,676              2,275
                                       ------------------  -----------------
    Total current liabilities before
     settlement obligations                        81,823             76,859
      Settlement obligations                      725,987            752,476
                                       ------------------  -----------------
        Total current liabilities                 807,810            829,335
DEFERRED INCOME TAXES                              15,522             18,727
LONG-TERM BORROWINGS                               62,388             66,632
OTHER LONG-TERM LIABILITIES, including
 insurance policy liabilities                      23,477             21,659
                                       ------------------  -----------------
  TOTAL LIABILITIES                               909,197            936,353
                                       ------------------  -----------------
COMMITMENTS AND CONTINGENCIES

                                   EQUITY
  COMMON STOCK
    Authorized: 200,000,000 with
     $0.001 par value;
    Issued and outstanding shares, net
     of treasury - 2014: 47,819,299;
     2013: 45,592,550                                  63                 59
  PREFERRED STOCK
    Authorized shares: 50,000,000 with
     $0.001 par value;
    Issued and outstanding shares, net
     of treasury: 2014: -; 2013: -                      -                  -
ADDITIONAL PAID-IN-CAPITAL                        202,401            160,670
TREASURY SHARES, AT COST: 2014:
 15,883,212; 2013: 13,455,090                   (200,681)          (175,823)
ACCUMULATED OTHER COMPREHENSIVE LOSS             (82,741)          (100,858)
RETAINED EARNINGS                                 522,729            452,618
                                       ------------------  -----------------
  TOTAL NET1 EQUITY                               441,771            336,666
  NON-CONTROLLING INTEREST                           (23)              3,303
                                       ------------------  -----------------
    TOTAL EQUITY                                  441,748            339,969
                                       ------------------ ------------------
                                       ------------------ ------------------
      TOTAL LIABILITIES AND
       SHAREHOLDERS' EQUITY           $         1,350,945 $        1,276,322
                                       ------------------ ------------------
                                       ------------------ ------------------
(A) - Derived from audited financial
 statements


                        NET 1 UEPS TECHNOLOGIES, INC.
                    Consolidated Statements of Cash Flows

                                Unaudited                       A
                          ------------------------ -------------------------
                              Three months ended           Year ended
                          ------------------------ -------------------------
                                   June 30,                 June 30,
                           -----------------------  ------------------------
                                 2014         2013         2014         2013
                           ----------  -----------  -----------  -----------
                                    (In thousands)            (In thousands)

Cash flows from operating
 activities
Net income                $    28,546 $      8,293 $     70,061 $     12,974
Adjustments to reconcile
 net income to net cash
 provided by operating
 activities:
Depreciation and
 amortization                  10,041        9,548       40,286       40,599
Earnings from equity-
 accounted investments           (96)        (147)        (298)        (351)
Fair value adjustment           (104)          223         (55)          631
Interest payable                  404          950        2,100        4,313
Facility fee amortized             81           67          738          302
(Profit) Loss on disposal
 of property, plant and
 equipment                      (392)          193        (434)          110
Loss on deconsolidation
 of subsidiaries and
 business                          55            -           55            -
Stock compensation
 charge, net of
 forfeitures                      898          582        3,718        3,907
Fair value of BEE equity
 instruments granted           11,268            -       11,268            -
Increase in accounts and
 finance loans
 receivable, and pre-
 funded grants receivable    (33,926)      (1,739)    (101,447)      (5,726)
(Increase) Decrease in
 inventory                      (199)        (630)          780      (2,890)
Increase in accounts
 payable and other
 payables                      23,566        9,868       12,671        8,113
(Decrease) Increase in
 taxes payable                (3,908)      (3,102)        5,523      (2,748)
(Decrease) Increase in
 deferred taxes               (4,802)          816      (7,821)      (3,317)
                           ----------  -----------  -----------  -----------
  Net cash provided by
   operating activities        31,432       24,922       37,145       55,917
                           ----------  -----------  -----------  -----------

Cash flows from investing
 activities
Capital expenditures          (6,597)      (5,644)     (23,906)     (22,747)
Proceeds from disposal of
 property, plant and
 equipment                        866          123        2,990          510
Net cash outflow from
 sale of MediKredit             (669)            -        (669)            -
Proceeds from sale of
 business                         186            -          186            -
Capital reduction/
 repayment of loan by
 equity-accounted
 investment                       564            -          539            3
Acquisitions, net of cash
 acquired                           -            -            -      (2,143)
Other investing
 activities, net                    -            -          570          545
Net change in settlement
 assets                        20,059    (255,565)      (1,350)    (423,984)
                           ----------  -----------  -----------  -----------
  Net cash provided by
   (used in) investing
   activities                  14,409    (261,086)     (21,640)    (447,816)
                           ----------  -----------  -----------  -----------

Cash flows from financing
 activities
Repayment of long-term
 borrowings                         -      (7,201)     (87,008)     (14,508)
Long-term borrowings
 obtained                       1,044            -       73,677            -
Proceeds from bank
 overdraft                          -            -       24,580            -
Repayment of bank
 overdraft                          -            -     (23,335)            -
Acquisition of interests
 in KSNET                           -            -      (1,968)            -
Payment of facility fee             -            -        (872)            -
Proceeds from issue of
 common stock                     110            -          198          240
Net change in settlement
 obligations                 (20,059)      255,565        1,350      423,984
                           ----------  -----------  -----------  -----------
  Net cash (used in)
   provided by financing
   activities                (18,905)      248,364     (13,378)      409,716
                           ----------  -----------  -----------  -----------

Effect of exchange rate
 changes on cash                  861      (1,151)        2,880      (3,275)
                           ----------  -----------  -----------  -----------
Net increase in cash and
 cash equivalents              27,797       11,049        5,007       14,542
Cash and cash equivalents
 - beginning of period         30,875       42,616       53,665       39,123
                           ----------  -----------  -----------  -----------
Cash and cash equivalents
 - end of period          $    58,672 $     53,665 $     58,672 $     53,665
                           ---------- ------------ ------------ ------------
                           ---------- ------------ ------------ ------------

(A) - Derived from
 audited financial
 statements

Net 1 UEPS Technologies, Inc.

Attachment A

Operating segment revenue, operating income and operating margin:

Three months ended June 30, 2014 and 2013 and March 31, 2014

                                                                  Change -
                                                                  constant
                                                    Change -      exchange
                                                     actual       rate(1)
                                                 ------------- -------------
                                                 Q4 '14 Q4 '14 Q4 '14 Q4 '14
Key segmental data,                                  vs     vs     vs     vs
 in $ '000,             Q4 '14   Q4 '13   Q3 '14  Q4'13 Q3 '14  Q4'13 Q3 '14
                      -------- -------- -------- ------ ------ ------ ------
Revenue:
South African
 transaction
 processing            $88,265  $58,196  $57,397    52%    54%    72%    47%
International
 transaction
 processing             42,201   36,193   35,245    17%    20%    32%    15%
Financial inclusion
 and applied
 technologies           64,093   29,609   56,226   116%    14%   146%     9%
                      -------- -------- --------
 Subtotal: Operating
  segments             194,559  123,998  148,868    57%    31%    78%    25%
 Intersegment
  eliminations        (11,806)  (6,116) (10,742)    93%    10%   119%     5%
                      -------- -------- --------
  Consolidated
   revenue            $182,753 $117,882 $138,126    55%    32%    76%    27%
                      -------- -------- --------
                      -------- -------- --------

Operating income
 (loss):
South African
 transaction
 processing            $38,675   ($197)   $9,137     nm   323%     nm   306%
International
 transaction
 processing              6,647    5,263    4,642    26%    43%    43%    37%
Financial inclusion
 and applied
 technologies           18,126   14,254   16,459    27%    10%    44%     6%
                      -------- -------- --------
 Subtotal: Operating
  segments              63,448   19,320   30,238   228%   110%   273%   101%
 Corporate/Elimi-
  nations             (20,801)  (5,729)  (6,289)   263%   231%   312%   217%
                      -------- -------- --------
  Consolidated
   operating income
   (loss)              $42,647  $13,591  $23,949   214%    78%   256%    71%
                      -------- -------- --------
                      -------- -------- --------

Operating income
 margin (%)
South African
 transaction
 processing                44%     (0%)      16%
International
 transaction
 processing                16%      15%      13%
Financial inclusion
 and applied
 technologies              28%      48%      29%
 Consolidated
  operating margin         23%      12%      17%

(1) - This information shows what the change in these items would have been
 if the USD/ ZAR exchange rate that prevailed during the fourth quarter of
 fiscal 2014 also prevailed during the fourth quarter of fiscal 2013 and the
 third quarter of fiscal 2014.

Year ended June 30, 2014 and 2013

                                                                   Change -
                                                                   constant
                                                        Change -   exchange
                                                         actual     rate(1)
                                                       ---------- ----------
                                                            F2014      F2014
Key segmental data, in '000,                                   vs         vs
 except margins                       F2014      F2013      F2013      F2013
                                 ---------- ---------- ---------- ----------
Revenue:
South African transaction
 processing                        $261,577   $242,739         8%        29%
International transaction
 processing                         152,725    135,954        12%        34%
Financial inclusion and applied
 technologies                       207,595    108,001        92%       129%
                                 ---------- ----------
 Subtotal: Operating segments       621,897    486,694        28%        53%
 Intersegment eliminations         (40,241)   (34,547)        16%        39%
                                 ---------- ----------
  Consolidated revenue             $581,656   $452,147        29%        54%
                                 ---------- ----------
                                 ---------- ----------

Operating income (loss):
South African transaction
 processing                         $61,401  ($21,316)         nm         nm
International transaction
 processing                          21,952     14,208        55%        84%
Financial inclusion and applied
 technologies                        60,685     57,491         6%        26%
                                 ---------- ----------
 Subtotal: Operating segments       144,038     50,383       186%       241%
 Corporate/Eliminations            (42,240)   (27,221)        55%        85%
                                 ---------- ----------
  Consolidated operating income
   (loss)                          $101,798    $23,162       340%       425%
                                 ---------- ----------
                                 ---------- ----------

Operating income margin (%)
South African transaction
 processing                             23%       (9%)
International transaction
 processing                             14%        10%
Financial inclusion and applied
 technologies                           29%        53%
 Overall operating margin               18%         5%

(1) - This information shows what the change in these items would have been
 if the USD/ ZAR exchange rate that prevailed during fiscal 2014 also
 prevailed during fiscal 2013.

Net 1 UEPS Technologies, Inc.

Attachment B

Reconciliation of GAAP net income and earnings per share, basic, to fundamental net income and earnings per share, basic:

Three months ended June 30, 2014 and 2013

                                           EPS,                       EPS,
                             Net income    basic     Net income      basic
                             (USD'000)     (USD)      (ZAR'000)      (ZAR)
                           ------------- --------- --------------- ---------
                             2014   2013 2014 2013    2014    2013 2014 2013
                           ------ ------ ---- ---- ------- ------- ---- ----

GAAP                       28,584  8,285 0.59 0.18 297,897  76,109 6.12 1.67

  Intangible asset
   amortization, net        2,960  2,888            30,842  26,520
  Stock-based compensation
   charge                     922    582             9,609   5,346
  Facility fees for KSNET
   debt                        79     67               823     615
  US government
   investigations-related
   and US lawsuit expenses     53    776               552   7,129
  BEE equity instruments
   charge                  11,268      -           118,740       -
  Net loss on
   deconsolidation of
   subsidiaries and
   business, net of tax       443      -             4,617       -
  Transaction-related
   costs                       77      -               806       -
                           -------------           ---------------
    Fundamental            44,386 12,598 0.91 0.28 463,886 115,719 9.53 2.54
                           -------------           ---------------
                           -------------           ---------------

Year ended June 30, 2014 and 2013

                                         EPS,                        EPS,
                         Net income     basic       Net income       basic
                          (USD'000)     (USD)       (ZAR'000)        (ZAR)
                       -------------- --------- ----------------- ----------
                          2014   2013 2014 2013      2014    2013  2014 2013
                       ------- ------ ---- ---- --------- ------- ----- ----

GAAP                    70,111 12,977 1.51 0.28   728,916 113,035 15.68 2.48

  Intangible asset
   amortization, net    12,490 13,679             129,846 119,155
  Stock-based
   compensation charge   2,914  3,907              30,296  34,032
  Facility fees for
   KSNET debt              657    302               6,831   2,631
  US government
   investigations-
   related and US
   lawsuit expenses      2,579  3,888              26,813  33,866
  BEE equity
   instruments charge   11,268      -             118,740       -
  Net loss on
   deconsolidation of
   subsidiaries and
   business, net of
   tax                     443      -               4,606       -
  Transaction-related
   costs                    77     69                 806     601
                       --------------           -----------------
    Fundamental        100,539 34,822 2.16 0.76 1,046,854 303,320 22.52 6.66
                       --------------           -----------------
                       --------------           -----------------

Net 1 UEPS Technologies, Inc.

Attachment C

Reconciliation of net income used to calculate earnings per share basic and diluted and headline earnings per share basic and diluted:

Three months ended June 30, 2014 and 2013

                                                  2014             2013
                                            ---------------  ---------------
Net income (USD'000)                                 28,584            8,285
Adjustments:
  Loss on deconsolidation of subsidiaries
   and business                                          55                -
  (Profit) Loss on sale of property, plant
   and equipment                                      (392)              193
  Tax effects on above                                (287)             (54)
Net income used to calculate headline
 earnings (USD'000)                                  27,960            8,424
                                            ---------------  ---------------
                                            ---------------  ---------------
Weighted average number of shares used to
 calculate net income per share basic
 earnings and headline earnings per share
 basic earnings ('000)                               48,695           45,593
Weighted average number of shares used to
 calculate net income per share diluted
 earnings and headline earnings per share
 diluted earnings ('000)                             48,855           45,713
Headline earnings per share:
  Basic, in USD                                        0.57             0.18
  Diluted, in USD                                      0.57             0.18

Year ended June 30, 2014 and 2013

                                                  2014             2013
                                            ---------------  ---------------
Net income (USD'000)                                 70,111           12,977
Adjustments:
  Loss on deconsolidation of subsidiaries
   and business                                          55                -
  (Profit) Loss on sale of property, plant
   and equipment                                      (434)              110
  Tax effects on above                                (276)             (31)
Net income used to calculate headline
 earnings (USD'000)                                  69,456           13,056
                                            ---------------  ---------------
                                            ---------------  ---------------
Weighted average number of shares used to
 calculate net income per share basic
 earnings and headline earnings per share
 basic earnings ('000)                               46,484           45,553
Weighted average number of shares used to
 calculate net income per share diluted
 earnings and headline earnings per share
 diluted earnings ('000)                             46,603           45,678
Headline earnings per share:
  Basic, in USD                                        1.49             0.29
  Diluted, in USD                                      1.49             0.29

Calculation of the denominator for headline diluted earnings per share

                                              Q4 '14  Q4 '13   F2014   F2013
                                             ------- ------- ------- -------

Basic weighted-average common shares
 outstanding and unvested restricted shares
 expected to vest under GAAP                  48,695  45,593  46,484  45,553
  Effect of dilutive securities under GAAP       160     120     119     125
                                             ------- ------- ------- -------
    Denominator for headline diluted
     earnings per share                       48,855  45,713  46,603  45,678
                                             ------- ------- ------- -------
                                             ------- ------- ------- -------

Weighted average number of shares used to calculate headline earnings per share diluted represent the denominator for basic weighted-average common shares outstanding and unvested restricted shares expected to vest plus the effect of dilutive securities under GAAP. We use this number of fully-diluted shares outstanding to calculate headline earnings per share diluted because we do not use the two-class method to calculate headline earnings per share diluted.

Net 1 UEPS Technologies, Inc.

Attachment D

Presentation of quarterly revenue and operating income by segment for fiscal 2012 to 2014

The tables below present quarterly revenue and operating income generated by our three reportable segments for the fiscal 2014, 2013 and 2012, and reconciliations to consolidated revenue and operating income (loss), as well as the US dollar/ ZAR exchange rates applicable per fiscal quarter and year:

                                   In United States Dollars (US GAAP)
                            ------------------------------------------------
                                               Fiscal 2014
                            ------------------------------------------------
                                                                        Full
                            Quarter 1 Quarter 2 Quarter 3 Quarter 4     Year
Operating Segment              $ '000    $ '000    $ '000    $ '000   $ '000
                            --------- --------- --------- --------- --------
Revenue:
South African transaction
 processing                    57,161    58,754    57,397    88,265  261,577
International transaction
 processing                    37,541    37,738    35,245    42,201  152,725
Financial inclusion and
 applied technologies          36,796    50,480    56,226    64,093  207,595
                            --------- --------- --------- --------- --------
  Subtotal: Operating
   segments                   131,498   146,972   148,868   194,559  621,897
  Intersegment eliminations   (8,004)   (9,689)  (10,742)  (11,806) (40,241)
                            --------- --------- --------- --------- --------
    Consolidated revenue      123,494   137,283   138,126   182,753  581,656
                            --------- --------- --------- --------- --------
                            --------- --------- --------- --------- --------
Operating (loss) income:
South African transaction
 processing                     6,461     7,128     9,137    38,675   61,401
International transaction
 processing                     5,524     5,139     4,642     6,647   21,952
Financial inclusion and
 applied technologies          12,835    13,265    16,459    18,126   60,685
                            --------- --------- --------- --------- --------
  Subtotal: Operating
   segments                    24,820    25,532    30,238    63,448  144,038
  Corporate/Eliminations      (8,420)   (6,730)   (6,289)  (20,801) (42,240)
                            --------- --------- --------- --------- --------
    Consolidated operating
     income                    16,400    18,802    23,949    42,647  101,798
                            --------- --------- --------- --------- --------
                            --------- --------- --------- --------- --------

Income and expense items:
 $1 = ZAR                       10.00     10.16     10.87     10.42    10.40

                                   In United States Dollars (US GAAP)
                            ------------------------------------------------
                                               Fiscal 2013
                            ------------------------------------------------
                                                                        Full
                            Quarter 1 Quarter 2 Quarter 3 Quarter 4     Year
Operating Segment              $ '000    $ '000    $ '000    $ '000   $ '000
                            --------- --------- --------- --------- --------
Revenue:
South African transaction
 processing                    62,420    61,708    60,415    58,196  242,739
International transaction
 processing                    32,397    33,664    33,700    36,193  135,954
Financial inclusion and
 applied technologies          26,615    25,563    26,214    29,609  108,001
                            --------- --------- --------- --------- --------
  Subtotal: Operating
   segments                   121,432   120,935   120,329   123,998  486,694
  Intersegment eliminations   (9,750)   (9,493)   (9,188)   (6,116) (34,547)
                            --------- --------- --------- --------- --------
    Consolidated revenue      111,682   111,442   111,141   117,882  452,147
                            --------- --------- --------- --------- --------
                            --------- --------- --------- --------- --------
Operating (loss) income:
South African transaction
 processing                   (3,299)   (6,233)  (11,587)     (197) (21,316)
International transaction-
 based activities               3,329     3,583     2,033     5,263   14,208
Financial inclusion and
 applied technologies          14,913    14,286    14,038    14,254   57,491
                            --------- --------- --------- --------- --------
  Subtotal: Operating
   segments                    14,943    11,636     4,484    19,320   50,383
  Corporate/Eliminations      (5,618)   (6,664)   (9,210)   (5,729) (27,221)
                            --------- --------- --------- --------- --------
    Consolidated operating
     income (loss)              9,325     4,972   (4,726)    13,591   23,162
                            --------- --------- --------- --------- --------
                            --------- --------- --------- --------- --------

Income and expense items:
 $1 = ZAR                        8.26      8.74      8.47      9.19     8.71

                                   In United States Dollars (US GAAP)
                            ------------------------------------------------
                                               Fiscal 2012
                            ------------------------------------------------
                                                                        Full
                            Quarter 1 Quarter 2 Quarter 3 Quarter 4     Year
Operating Segment              $ '000    $ '000    $ '000    $ '000   $ '000
                            --------- --------- --------- --------- --------
Revenue:
South African transaction
 processing                    45,632    43,985    43,753    61,260  194,630
International transaction
 processing                    31,053    29,446    28,635    31,491  120,625
Financial inclusion and
 applied technologies          24,454    19,771    19,591    26,976   90,792
                            --------- --------- --------- --------- --------
  Subtotal: Operating
   segments                   101,139    93,202    91,979   119,727  406,047
  Intersegment eliminations   (1,213)   (1,144)   (1,315)  (12,111) (15,783)
                            --------- --------- --------- --------- --------
    Consolidated revenue       99,926    92,058    90,664   107,616  390,264
                            --------- --------- --------- --------- --------
                            --------- --------- --------- --------- --------
Operating (loss) income:
South African transaction
 processing                    17,001    13,549     5,590   (2,234)   33,906
International transaction
 processing                     4,346     3,519     3,295     3,489   14,649
Financial inclusion and
 applied technologies          11,968     9,479     9,078    15,359   45,884
                            --------- --------- --------- --------- --------
  Subtotal: Operating
   segments                    33,315    26,547    17,963    16,614   94,439
  Corporate/Eliminations      (2,469)   (6,319)   (5,485)  (19,016) (33,289)
                            --------- --------- --------- --------- --------
    Consolidated operating
     income (loss)             30,846    20,228    12,478   (2,402)   61,150
                            --------- --------- --------- --------- --------
                            --------- --------- --------- --------- --------

Income and expense items:
 $1 = ZAR                        7.09      8.18      7.85      8.03     7.72