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Net 1 UEPS (UEPS)

Participants
Dhruv Chopra Investor Relations
Herman Kotzé Chief Executive Officer
Alex Smith Chief Financial Officer
Scott Buck B. Riley
Bill Gordon Gordon Capital.
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to the Net1 Q3 2020 results. [Operator Instructions] Please note that this call is being recorded. I would now like to turn the conference over to Dhruv Chopra. Please go ahead.

Dhruv Chopra

Thank you, Irene. quarter call. third our to XXXX earnings Welcome With Herman Smith. Kotzé; the call our CEO, today is and me on our CFO, Alex

press ir.netX.com. supplementary our a release are Our on available investor Investor presentation website, Relations and

forward-looking As a call, in the I forward-looking this uncertainties reminder, our at press you look language the statements. statements, risks associated be to and we ask cautionary and will during making contained release regarding with

we have addition, directly this and non-GAAP we financial non-GAAP be these will comparable most certain a during using provided measures In call, measures. the of reconciliation measures to GAAP

will African release of non-GAAP of a We understanding rand results our our in our business. operations discuss investors in trends in rand, which results underlying analyze We South to is press our assist measure. the

can the significantly between South know, currency fluctuations and results U.S. African rand. you by company’s the affected dollar the be As

turn let will over to question-and-answer with We a have that, following our And the call remarks. prepared me session Herman.

Herman Kotzé

good I you, day times. Thank to unprecedented is and hope healthy safe these everyone. Dhruv during and everyone

the has of last you, the been the from to have working most lockdown. remains business us pandemic operations. a of for Similar every around many South COVID-XX national weeks home on impacted as several our like Africa world, Just

of next, South will our corporate Bank have for Frick COVID-XX we well and our things: four capital. third our QX impact our as Today, though, we time, by Africa; on an review for of markets our the current taken fourth, that brief I’m option; and our the liquidity I business, as to and strength our the this focus cancellation uses things on During for are to a around on would of to key subsequent proud ability shareholder and international update followed serve. actions, our a plans the customers the overview we communities results the right of then value like of doing ensure our plan actions I first, our position; discussion the of pandemic employees,

a that for customers $XX.X recap dollars, which certain In for few the in operations quarter the million, our to loss EBITDA during X% charge continuing from days quarter. note adjusted lack March new Revenue in industry’s primarily $X.X KSNET’s First, higher and of quarter united XXXX. an was is South to IPG. year-over-year from like to was banking continuing for reported lockdown fees due U.S. last with Ceevo, the of African Africa losses flat line continuing are the South brand COVID-XX results. currency. we constant the I operations in of million, third which due but did response cash operations brief line of from pandemic to excluded would withdrawal to in grew the the not third contributions We growth top the

products, March XXXX, debt financial of million of into South market currency. X.XX of related $XX And result million. of volumes There depleted been increased constant Number QX. in for for deemed our access to number XX, to accounts services a or stable offices. prohibited services launches. of facilities delays also with site. during adjusted lockdown, loss of withdrawals in also April Africa a for either Including allowing We selling million in emergencies, and As were of loans branch million infrastructure, Transaction while XXXX the of cash financial operate continued key $XXX new as March XX% DNI lockdown. which at a year-over-year million would relatively services other out team nationwide lockdown, through and did have X KSNET not during were services our million went processing essentials insurance $XXX charge our in were sold and, as only Africa as remotely remained $X.X like branch Many on ATM therefore, of March the services. the EBITDA new and South for giving permitted bank essential our XX, XXXX. we were a certain such months, at in had house for to people others KSNET for or $X we of On and product unrestricted and staff such policies limited

on reduction is and industry-wide South still from grading grading effect to will Despite proud X Level Level I’m will our due a Level when would now. the this We to may be system is their limitations went the in X, believe and activities on Level fees the though and May time unprecedented some Africa to restored, lockdown of thank employees days waiving until like when extended for June of restrictions, reaches many fees during this we its X, for with this of introduced who a continue lockdown disruptions few continue it restrictive. to during the to initial ATM and tireless efforts. least Level become last continue effective March X our from highly XX-day at of which X. revenue serve period, customers expected our them X experienced to X certain certain

mobile relevance volumes we far daily so during ATMs However, of across our importance and observed and network. channels digital our April demonstrating and transaction May in record the

payment systems, in record Africa new the availability loan our other record mobile platform; the highlights XX and days in EasyPay product the our and services Some in the XXX% uptime; ATMS; of to volumes such completion processed any development processing billers works no in launch on processed volumes record of mobile in of increasing and our South as new which during interruption daily core origination our volumes through but wanting believe few the lockdown switch; that around to businesses taken world, words, we’ve include: bill feature time, to last platform, survive focus positioned of past steps join the phone-based well value-added solid to of X capital years to sound a we and a comprising us not over than over execution past and with rather times phone foundation challenges type of of other a faced issues we months, emerge Similar up on the number or the nonproductive relevant tied only these also base be technologies. with challenging have but legacy smartphone.

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on to operate directors African-based reductions and we our to XX. the donated employees have Fund operate offices pandemic executives X non-executive sanitization our its be of facilities operating various provided June for in assistance employees assisting facilities we May amounts benefit salary and COVID-XX the launched continue impact Africa remotely within the In against XX% its and which and April, locations. social have South protective have XXXX. We equipment and fee necessary that a those In South taken other all system in care, These and as fight education. April, NetX’s Solidarity to will announced provided customers and mobile of to loans grant was to health critical developed the to early related and comprehensive for months repeat that functions the for USSD such strings, initiatives phone-based also using to

X position. a months, corporate Over very liquid number disposals, the a the group past completed strong we and in have of which leaves

in which financial our BXC topic, in second dramatic the outline for focus towards Africa. business to fiscal is customer now XXXX, XXXX African me African South has been a South activities operations to taken Having Let reduce our South inclusion to fiscal our costs our or model. plan transition in steps

have in and Finbond, in new products We offerings our infrastructure. and services increase financial cooperation continued our developed distribution efficiency to banking stabilized with

base expand position to financial of to fiscal disposals the now services months. offerings following been the a XXXX, year, until account had, we such ability support asset in the QX constrained during to over availability the XX inject liquidity and adequate Our but liquidity, growth are by next sufficient our

result government-imposed lockdown period face-to-face the restrictions activities Africa book commence we with COVID-XX, to financial lifted, marketing as typically the only restrictions able products been customers have South period of lockdown we due to However, these been interactions. government-imposed Under target into as our sales the require during a loan the COVID-XX, have of is our be face-to-face and and going once as with unable grow other to will prohibited. a loan new

are to income currently with affected had up to and, our higher our XXXX, initiative the also segment. services, customer efforts in products with certain to This withdrawals early on ATM higher in by customers we’ve Grindrod we therefore, balance promising to LSM waive lockdown Finbond, grant to the initiatives. showed of the Additionally, work it’s other types finally, first their and signs, recipients ATM such January loan And And Bank move collaboration but a period. loans acquiring we regulations. continue during essential These as lockdown sheet. utilizing of new fees launched the on by

payment to interact leave Our customers the embraced people. processing require lockdown or and consumers do through them digital and bill payment as their its channels other sustained platform, EasyPay, momentum has that with even not homes

on action settle are activities Cash through Africa. some X% very platform platform our it in spending XX decided the As the into unable the protection to or of increased claims or revenue bankruptcy To to bill despite be country, of most and Paymaster business course and challenging the year-on-year as Services, would retail rescue XXXX XXXX, have we we environment. to and QX South integrated is to EasyPay others have the payment conclude in been SASSA end between and CPS, we that accordingly the to referred appropriate during expected be South by of CPS which signed in integrated all already billers largest of dialogue, new Africa, been QX during place June. counterclaims our a subsidiary

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are the in Africa. opportunity South excited about We

the in We as as prepared and to it’s our recovery, the have provide willing to we’ll on we so. that faces technology in its base the financially with economic significant services We know right to products, partners soon based resources the place, and stack. and grow way consumers market products growing and and do country safe to able of inclusive are struggling hurdles on be

ago, products, commence Bank however, intend near-term to macro payment be across to the small to offer canceling mutually Frick position a Now is a stake rollout APMs, current or the approval The on agreed chose and from EU, to European currently now in following: moving able Bank is the acquiring conditions strategy role accept Ceevo may payments; will and of will plays rapidly offer the or are specific summarize to a EU it collaborate weeks pursuing. activities merchants in alternate able Bank our Ceevo. will bank EU-based our SOFORT; we while acceptance of XX of and to through now corporates fully facilitators, still reduction prepaid Ceevo WeChat and such to Visa providing partner services blockchain offer and over the onboard imposed can bank global IBAN’s system Frick, the delay accepting now in bank merchants; restrictions in credit in controlling in asset the accordance conserving alter option is Frick. In methods, businesses, It to direct continent. Bank margins. international providing payment will Alipay, product. virtual a d) result integrated critical the strategy profit in soon crypto issuing on Pay, in received the The I also with small a and trading versa crypto of ACH our platform Europe account and and by in Skrill issuance in market ventures, given earnest partners a bank including rapidly and storage instant cash. still opening with it take card strategy, in and and the through well the solution, on USA; FIAT products lower official region. European safety market in and Frick other crypto changing We time still debits as and to payment the merchants our controlling though with ability b) alternate begin valuations, methods, which and to to with SEPA ability the card spite X as and e) vice we c) a not very a) to as debit vertically performing cards a our premium environment, credits mainly that including placed

continue to establish Africa, Frick strategy at new blockchain-related and Carbon a we to collaborate to seen which meaningful We payment will on have and introduce and sizable VX, talent, focus Bank products. to using with local our business. partnerships supports momentum business pan-African resources In

we was prices. funding as faces its has prior on the better to in in business. be particularly a tightening known first key its It circumstances, successfully an pandemic $XX annual It Starling to repeat quickly customers, Nigeria, such its criteria lending to As all run changing its in of bank financial customers. Based banks the months all low in funding higher leaving million Monese, an crisis, similarities million and to to regularly Carbon had include impact is to further many penetration cards, leaves settle oil a rate long credit cryptocurrencies XX product virtual the expanding adults, still under-banked. exchange. Retail additional with Nigeria Carbon’s dollar it and is sequential run-rate as for Nigeria suite of and end-to-end around only services its and rate indicators revenue, And to the foreign Carbon with position. for vision runway challenger products finally, a one U.S. un-audited in the products of and X% growth. prior outbreak for both relevant is on burn, the Pre-COVID, local cash pan-African many know-how are our revenue There denominated had have our with digital business, across lending and Bank than of of on Carbon’s and of XX% with to report exponential are of its is number are Carbon MobiKwik’s of Monzo. dealing focused monthly both with at most raised communicating of their players like the as technologies, able positively outbreak. to that sound and in a with UK, the Atom, and can set front, company its reacted does international challenge high recently peers. recent has the growth business a resulting the in continued across India with India management facing with strong when of the while businesses key that and such looking of rapidly and is This potential is a had are jointly Africa discussions MobiKwik expand financials reactionary team we’ve time the number number have others not impact world. that the contend survival. the

card to and We launch our base. virtual have calendar talked expect year-end customer about before qualified to XX MobiKwik that million its

its primarily offerings and to materialize. due other discuss expectations, financial continues they to being of a digital ahead services will We transition as successful provider. MobiKwik perform when itself to

million, contribution since MobiKwik ended XX, XXXX. revenue from March gross For recorded EBITDA of annualized breakeven October has XX, the positive cash ended $XX been for un-audited reduce margin XXXX top million around $XX moratorium quarter since its of up the March in XXXX. XXXX XXX-day has It line is quarter been and quarters. payments August and to is business, positive nationwide the likely loan the a a month term but repayments June all COVID-XX to on on impact have growth September expected XXXX,

still healthy the line growth year. generate expect However, they full for top to

the as policies week. a $XXX which low $X,XXX also over as sold loans per of cover for They approximately disbursed During a insurance quarter, first offers They MobiKwik to to the the were the first XXX,XXX month. premium X,XXX $XX. within introduce $X March such product, to coronavirus XXXX new

base So similar ease is African in we positioned to which well the our markets international to South business, operate. small grow portfolio our a in restrictions off the once

months, over long-term. the well past Finally, as positioned and have DNI, the we corporate have including us actions near I of touched which sales for on a FIHRST, the KSNET of X number earlier, and concluded

on that like sources Now allocation. liquidity, the of focus I outlined to capital would I have

pending return of we the to company’s balance to process, disposals, to a the continued and Any Due of strategic not sale of African Act. ensure current review and a qualify has maintains company control businesses shrinking has light Investment the rand our use the recent the Board and last pandemic, Bank of share company the the of delay capital strategic the from around exemption of uncertainty the clear investment Act. completion the In Frick, that and coupled the decision depreciation strong several our also decided base, review to the sheet its capital. of company need repurchases. An for significant be classification entire Company the company. and operation subject the Company Board of large implications of any the for to initiated the with status under not of will clarification Following comprehensive take South the operation the Investment do currently month numerous of has

to can plan. the but a We Capital SEC. Partners such a of the return we very to capital activities. need on shareholders, will some we seek an plan, the from an before a Board we investment review that an an by Nevertheless, further in a and, with in can it is not us engaged However, therefore, confidently we us cooperation for strategic be ourselves to order to have intend decide on the we to important any we the rely plan operating above-mentioned upon items Depending commence prepare such to and to with still exemption outcome provide exemptive company Value may consider company. much develop resolution

We Chairman we at the non-executive including appointment the retires Directors, when to Chris June. directors of last contributions. of of Jabu significant that Board, Seabrooke believe of specific our appointments announced we the NetX forward few new have skills their look to X and and to experience decades end the Mabuza as future these of bring Board business designate the months, each Over and

became very I productive We forward recently for Chairman as Chris guidance the Seabrooke him our during times his also some and shareholder. tireless would to leadership best. to appreciation who over we Director largest And wish look finally, and Capital to Value relationship Partners, with a and the our express years, like challenging all heartfelt

the over hand to me over it now Let go Alex to financials.

Alex Smith

to everybody. you, day and Thank good Herman,

will parallels the and of and our in in be curtailed lockdown severity financial Africa economic Given have the between over experienced and be the than for direct and Though discussing to the the lifted. and more to of our the past can year-over-year U.S., of most situation of are bearing our XX see the trends therefore comparison results structural and operations, third length South on more normal Unsurprisingly, material QX results current pandemic South of the changes is in in the other the COVID-XX markets, many limited finally, months, depend will the in and, activities, quarter nature, drawn in the the impacts restrictions Europe business QX NetX those Adding on recovery the we and quarter-to-date I once effects time comparisons. the near-term to relevant Africa, is global spend operations, trajectory therefore, trends the QX. begin South Africa. given the of that relevant for mix that, than

behavior more will more that in actions is like necessities systemic less and distancing, of social on is markets business We, there believe target so focused pronounced. shift that our discretionary our recognize therefore, will under-banked, our safety, the dependent spend not that on the be and behavior on and etcetera, we likely Given customer any habits. be largely do un-banked

reasonable X next productive the any and of as eager we disposals cash handle last so. gone very our expected two substantial and exception balance quarters. our sheet, not are our off of the good safety on to exercise a strong the on Herman, and as us Despite the soon burn all a do nor team conditions the have pandemic, on have to management past laid discussed employees costs, by over reduction therefore, over through we’ve as year the a regulatory having Following months, with strategy reduced execute cost and, salaries, our employees directors, visibility the permit and

reopen, with has May Africa March X most over involving that designated X, operating Africa economic there and the on to Level expected be XX X the areas Outside of but restrictions country then any of will parts days. guidelines by most released economy are remains only next the interaction in be announced government see the have allowed South X, and activity is for phase X resume on the this few from this from operating. many in increased At limited not social it is The hotspots, Level very of will clear this to significant severe Level point, X our activity, restrictions to away. but moved still able some of the April impacts This seen was other will lockdown now will micro-lending XX. form definitively direct to It fall whether travel. maintains operations whether Level and we economy been before. as move June South lockdown, earnest

is Hemisphere, a months, Africa again, and summer expected in should hubs. deteriorate expecting from South that continue virus as particularly Northern rising lockdown in reminder, coming winter the path, increased the the be the the country’s a is will the there the of to economic level which, risk over is incidence situation the

results, and rate ZARXX.XX rand-dollar in the quarter. average XXXX a to Moving ZARXX.XX compared of our to on our third ZARXX.XX the to quarter ago was dollar exchange second year

recovering partially its so. March However, the the sharply ZARXX.XX almost appreciated to days in past the level XX during downgrades, to to weak ZARXX dollar over to around dollar the pandemic, reaction to prices rand ratings commodity and current the before or

the higher XXXX of was with of segment third and and have the second second compared to of quarter an revenue South XXXX, fundamental was The as share ago. of XXXX of March. per $XX.X compares performed if a transaction fundamental by X% This last $X.XX share lower third XXXX in through offset week a to the would compared primarily $X.XX. transaction share loss year XX% quarter quarter quarter the African the processing By loss $X.XX fundamental million Third per up from in a up reported per of the revenue segment, loss for foregone even fewer not result the on quarter in increase fees been fees in constant in and currency to basis network period. EasyPay, a due EPE SASSA transactions our and partially increase ATM in the prior but of accounts

Our by quarter charge cash adversely days of XXXX revenue of as as the lockdown a pandemic third unable for were was COVID-XX as March result impacted the withdrawal $X.X customers the result during certain last to million few XXXX. we a to of fees

expect million exchange the ended. $X.X monthly of rates or current to ZARXX impact at dispensation approximately is the fees foregone be until We million current

customers by Excluding the the loss, of to goodwill adversely of our have loss impacted $X.X operating a impact been SASSA and transaction EasyPay year impairment segment the loss revenue million processing South ago. compared African operating

XXXX for margin and and negative QX XX% negative XXXX. XXXX Our was XX.X% in operating of of negative XX% QX and

XXXX, the impairment, XX.X%. Our negative operating was for QX goodwill margin loss excluding

the returning While of of international accounts, remain at International primarily third The contraction in to million revenue. focus generated quarter XXXX, third year-over-year and ongoing in operations decrease quarter we’ve sequentially in of lifting this XX% was this the revenue currency continuing on from of compared in to key XXXX an basis. profitability, is transaction this on volumes. made $X.X segment down but transaction was processing segment level subscale we progress constant due to in revenue which the a up

various the few As noted, allow Herman will conclusion of us Bank launch over months. services Visa the next to Frick’s new audit

be effects extent may we we pandemic activity the Europe volumes by returns. sales positive be to and However, ease see expect of the to sales activity new expect transaction influenced a commence, in restrictions trajectory. Once economic return will and the which by product initial tempered to

reach are its EBITDA anticipate cost from the breakeven that with increased losses Given to component fiscal compared losses, early we to operating calendar loss and QX the able operating cost to Segment growing operations monthly we fixed fixed XXXX continuing of in largely reflecting will XXXX. volume nature, high business. during higher decline due to start XXXX

Our margin QX XXXX was operating XXXX and XXX.X% for negative respectively. XX.X%, negative loss and

due $XX.X sold were: were March, we of and total our early revenue gain and million contributed and amount proceeds by from we million and of of to Lending in of quarter reduced revenue. XXXX incurred approximately in prepaid cash with taxes modestly, fiscal as the higher an latter approximately $XX.X includes on next pay inclusion XXXX. This estimated we broadly sales the the taxes this technology were withholding of of a know, continuing disposal on paid of XX of the well of Financial U.S. transaction-related million Key which operations of features million. as hoc primarily after-tax insurance of segment process have million consistent July million and to months; in this operations million disposed refunded sale commenced $XX.X $XX million, expect Korea. EBITDA costs increased of they terminal you quarter. amount around ad have closing and to taxes $XX.X we and $XX the transaction, third As applied $X.X sales $XXX Korean and in for the recognized $X.X revenue million

the fairly the operating was new negative continuing continue Finbond EPE Our natural remain from with of steady, XX.X% accounts during with quarter against This third X% accounts X.X% that XXXX. a to for some of XXXX. the quarter we account negative numbers. operations in the negative of second the offsetting margin Active compares income saw segment attrition in

up the of have release capital not of lockdown. the product action back numbers current account the to yet from able the to to were on the plans been but due ramping Our this start following pandemic we loan disposals,

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only We revenue our again. lending expect lending commence that increase activities are to able will and in-store associated meaningfully once book we

the based its predict also will current product restrictions the lending expected significant need grow these mobile-based existing will in closely receive again to in are for and to there able its branches that will unable to to policies. in our base We been the once business commence be premiums continues rate through new face-to-face be when criteria operating monitored. insurance lending the origination to we but to book. be Similar that However, lending, lifted, the growth of level the are or environment, believe on of level we products policy demand the has unable or credit

Given press it the should low increase South insurance is time there such recent is experience, understand as level is progress our ongoing but not impact any arise. that extent deal weeks adverse operating clear recapitalization, a will recapitalization making claims, any but remains to made the and well we and C been C’s of of related infections it’s Cell in but recent suffer. finalized, capitalized to Cell articles is Africa, encouraging, claims is we its with date business assessed, dilution on the on in The until viability progress speculation, has this in any process. an From

the of to to $X.X from period X We value. but value a on Cell of has income months last the in to seen its equity-accounted over benefits recapitalization We C fair XXXX million the assess at the quarter X last million of some in create investments current compared year, due $X.X complete to recognized DNI to primarily the focus from our the from during a of will investment loss contribution a same increasing core operations continue needs its third sustainable quarter. business. an

Bank of on next XX DNI, X, consideration to the We an carrying the value million the related recognized fair of $XX received of our recorded for two including due we million In fee exchange XX% of million, investments, $XX.X over which, and impairment translation as December XXXX, between of April $XX March the and XXXX. the to charges months. a of XXXX. our rates However, and of X the April, million included be in loss in namely million value XXXX will difference which the foreign and On cancel conditions, between accumulated cash related of termination paid we Frick in recovered March April $X XXXX, sold to in remaining our $XX.X to received million was exercise $XX.X currency foreign and X, noncash reserve we primarily DNI interest remaining VX DNI, the to market changes of we of to and of $XXX million. opportunities. At a $X as acquire of our debt approximately the option of which of the of Bank using remaining our a In $XX.X were the of impairment was working on difference current comprised U.S. our with X remain million, the fair to of interest cash, and million. April determined portion of an XXXX, We at and $XXX.X Bank cash dollar-denominated received March further committed We and further balances third $XX them exploit million of recorded in XX, equivalents In our and a rates, DNI XXXX, value calculated received XX% cash Bank ZARXXX we between million quarter Frick loss before the $X.X cash proceeds. XXXX, April outstanding Frick primarily million value closely carrying investment to Frick. the the settled XXst related to exchange impairment. sold million dividend

of in with activities cash We imposed to of originated net towards restrictions on which this compared in outflow unable to result third commence lending was operations. incurred of loans were a activities majority of XXXX, end and the origination quarter and the continuing positive operating cash used where resulted losses due COVID-XX XXXX the the our on Our XXXX in March during impacted by by during a quarter net the third loans cash. had cash our XXXX of March XXXX, of we the

increase lower Going to interest forward, offset cash partially we the balances, to income rates. expect due by higher our interest

facilities. our expect to incur also ATM some interest continue We related to to funding expense primarily

million. results are of of XXXX benefit the million incurred $X.X Our and quarter around currently operations third EBITDA The Based continuing the our a incurring for losses relatively loss a so business, EBITDA our an share in XX.X shares is at remained on we month. average compared third cash for constant due to the million reasonable once of quarter, has cash weighted $X.X proxy third a quarter XXXX. during million $X.X tax for again. therefore, reverse by XXXX. capital COVID-XX will cash compensated reduction duration to loan and, about book of of still burn clearly million income will in the loan the remainder severity a pandemic our book, In fiscal loan $X.X our The unknown increase this outlook for will withdrawal monthly the be of withdraw though financial to it’s the of unwind fees cash book by and repayments, the month. to more is starts this than in loss around third the expense XXXX. of grow respect $X.X the we tax to count quarter prudent million And was the the of believe our

the impact many South adverse observed EBITDA lockdown If of to and inability for statements. financial of now charge banking financial XXXX, the will products during have recently prior we can new are marketing to has end Q&A. an the be transaction we full believe certain for our able open modestly on our fiscal We for our to strong positive African commence XXXX. up services fiscal our had essential our period adjusted While businesses the the of processing volumes, call

Operator

B. is [Operator of question Scott first from Riley. Instructions] Thank you. Our Buck

Scott Buck

you I tell if aware guys. options the curious the Investment that? morning could good Company and Hey, when became remedy us you issue of are am what Act to

Herman Kotzé

had well in a issue been Scott. Hi, company it’s year has or our planning the while, clearly ourselves as part But exercise, which effect last don’t the unfortunately, fairly over obviously relative to Sure. which go the circumstances African had around influence been in The months not the call South to our in I the plans situation one this time, was significant perspective, on for Bank a the We of the valuation through deal it. with key that legislation investment current had and in X assets. the aware part find an plan has our resulted rand, issue. of we African on change revolves over Frick needs specific South of all as matters current But company situation position option, piece we the last analyze place is the It and that from of complicated the remedy in. the a that to we on so. did resultant think, to enough have this decline of that of the

to the efficiently going possible. the that is is a then will swiftly to we strategic of as as this can. to a an on still deal depending of is is underway need very to that we do, review aware course the we are we We this currently which deal certainly as determine amount from take not this we investigation of intend exemption if for with as time. deal hope long And as we to of but to issue outcome and that expeditiously So with. SEC, and what ask best an There plan with action, it

Scott Buck

the any get ramifications are are What kind and you SEC? declared of an the you if can’t from company forbearance investment

Herman Kotzé

So fairly contained best it’s that But our I I it’s description or may law. of have the in think actually – the impacts Q. a complicated this area implications as various the of said, is

it I’ll you a risk we’ve what description refer to So that you’ll see means. that there, and a there’s that factor included for concise of over

Scott Buck

longer? timeline terms I clarity, Alright. or are X talking we And of to in about mean, months gain

Herman Kotzé

Yes.

we when to So the – obviously, do as from regulators control X entirely complete some as within our may that be perspective, But far of certainly not we it concerned. our everything under to intend months. the need are next

Scott Buck

Great.

went me, and of the through for and this the we review, why question are decisions And it kind year KSNET terms doing Next What’s sell strategic this ago, of DNI. different feels this time? in a we about again? what to exercise like that’s drove

Herman Kotzé

quite structure. been a think there of changes things. a Obviously, terms couple have I corporate few the recently of in

form to embark the a during that part one of cooperation weeks. we’ve on Capital the number so that or ago shareholder with And agreed new of review a came the have board we few month them, last signed of the in We strategic Value a company. or agreement on as

about we’ve important Scott, we believe during the also This new it’s a continuation as X Obviously, We further activities in that has not also review, Board, been changed to that have these propagating time think business different and is brand-new fair a on ways, a would plan say. – them I it’s on is a and now directors that to times, ago. various and impacted started a just a of year non-executive the to communicating we we prudent world and that embark with actually it review.

to specific it very those for So think complete us it’s reasons, for now. opportune we

Scott Buck

appreciate I answers. the guys. Alright Thanks.

Herman Kotzé

you. Thank

Operator

[Operator have Bill Capital. Gordon We Instructions] a of Gordon question from

Bill Gordon

some can use when with so areas the there, a go where direction just dividend seem down can you we’re everything’s of high-growth to go be we to whether he get to some I us we don’t really company, I money In point? our that particular India, figured And same that sort get can of was it. going that Scott as investment route that story. when mobile in did, did don’t this the cash we pay reopen it’s going But for anything out at want nature? this now to a quarterly have we but words, it. pay other best don’t got dividend, What need the doesn’t or cash

Herman Kotzé

level as the our to review We – our I currently – my return position remarks, are I speaking, a uses still to to some in it just of will various about obviously, soon the so busy do we as of shareholders capital during that support generally is so. this as with. we’re intention capital, said

the soon start, capital over or kind to we’ve part so, add as of large-scale of And book. that as And and is – is identified at the we of M&A are stage, this etcetera, the for any, next an of Those in very – are changed. return specific that So to in have too X to cash what future. strategic the as currently But which as intend the when amount the not other intention our we early our will we or we foreseeable considering it’s uses over analyzing. the hasn’t deals significantly terms loan shareholders smaller as South considering activities, long from term. think it we’re to any bolt-on capital But form our – of will concerned, as not the still activities that look perspective, to other don’t take next months that be far what we we earmarked may focus. again distribution week, can at of do is is and we grow intend African M&A

Bill Gordon

thank Okay, you.

Operator

closing have We have any comments? you Do questions. no further

Herman Kotzé

you. no comments No, Thank from our further side.

Operator

gentlemen, Ladies this conference. you joining that for concludes us. and Thank

now may lines. You your disconnect