Investor presentation May 2020
Disclaimer This announcement contains certain forward-looking statements with respect to the financial condition, results or operation and businesses of Network International Holdings plc. Such statements and forecasts by their nature involve risks and uncertainty because they relate to future events and circumstances. There are a number of other factors that may cause actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances. 2
Network International: a compelling growth opportunity in the world’s most under penetrated payments markets Fast moving transition from cash to digital payments across our regions. Whilst Covid-19 is impacting consumer spending, we have a strong liquidity position Presence across the payments chain and pan MEA approach anchor our competitive advantage Focus on strategic execution to consolidate our position and drive growth Mastercard partnership supports digital and mobile payments solutions capability Multiple growth accelerators available to our business through market consolidation, substantial outsourcing contracts, or selective acquisitions 3
Business model Pan MEA diversified payments business Our Merchant Solutions Our Issuer Solutions Payment Direct Acquirer Issuer Issuer Merchant Card Issuer Acceptance Acquiring Processing Processing Solutions Customers Scheme Customers Operating across more than 50 countries Customers serviced by Network International 4
Business model Driving digital payment acceptance and usage Merchant Solutions Issuer Solutions • Issuer processing services: hosting and processing • Direct acquiring services for merchants credit, debit and prepaid card transactions • Acquirer processing services for financial institutions • Fraud solutions; both inbuilt and managed • Omnichannel payment acceptance solutions • Value added services: loyalty solutions, card control services, data analytics, instant card issuance • Value added services: loyalty solutions, dynamic currency conversion, data analytics, payment plans Working with >200 financial institutions for >13 years Working with >70,000 merchants for >15 years 5
Business model A diversified range of sectors in Merchant Solutions Merchant sectors as a proportion of Total Processed Volume (FY 2019) Government Services Supermarkets Travel/entertainment Retail (incl. clothing/jewellery/ electronics/beauty/others 17% 17% Healthcare/Education Other sectors 6% 12% 19% Airlines/Travel Agents 1 Hotels 29% 9% 9% 11% 11% Duty Free/Other Entertainment 9% 9% 75-80% of TPV represented by domestic transactions 6 Note: 1. In 2020, a further reduction in airline TPV was expected, even prior to Covid-19, as a result of our proactive strategy to reduce our exposure in this sector
Business model End-to-end capabilities anchor our competitive position Product Proposition Geographic Reach Scale Middle East Africa Merchant Solutions Issuer Solutions >50 Countries - Mainly Nigeria - Jordan Only - - - Limited geographic reach and product offering with no meaningful scale across the MEA region High Source: Edgar, Dunn & Company Market Study. Low Medium 7
Strategy Our strategic priorities • Capitalise on digital payments adoption • Expand customer base and focus on high value segments • Expand product range and market penetration Providing solutions that • allow our customers to Leverage technology and build capabilities bring digital payments to more consumers across our regions • Develop commercial arrangements with strategic partners • Pursue opportunities for acceleration 8
Strategy Most under-penetrated digital payments regions High Reliance on Cash Payments Fewest Number of Cards Limited Transactions per Adult Digital Payments Share of Transactions 5 Cards per Adult 4 Transactions per Adult p.a. 2, 4 North America North America North America 74% 5.3 427 Europe APAC 3.0 Europe 162 51% Europe Latin America APAC 22% 1.9 70 Latin America 21% Latin America 1.9 APAC 45 MEA MEA MEA 14% 0.3 12 Norway 95% US 5.5 Norway 538 US 79% Norway 3.7 US 432 UK 66% UK 3.0 UK 383 South Africa 36% Brazil 2.9 Brazil 115 Brazil 22% UAE Saudi Arabia 1.9 115 UAE 15% Saudi Arabia 1.4 UAE 100 Egypt 15% South Africa South Africa 1.3 97 Jordan 11% Jordan 0.9 Jordan 18 Saudi Arabia 9% Nigeria Nigeria 0.5 9 Nigeria 9% Egypt 0.3 Egypt 5 Select countries of Network International operations Source: Edgar, Dunn & Company Market Study, 2017 data 9 Other countries
Strategy A bespoke approach to our fast growing markets Consolidating our leading position in the Middle East Capitalising on Africa’s nascent payments markets • End-to-end payment solutions, with direct acquiring in • Established customer base in Issuer Solutions with the UAE and Jordan growing presence in Merchant Solutions • Scale and leadership, given our 25+ year presence in • Hub and spoke approach to client servicing from our the region and long term blue chip customer base offices in Dubai, Egypt, Nigeria & South Africa • Strategy focused on consolidation, high value customer • Competitive strength rooted in a pan-Africa presence segments and cross selling and localised approach • Customer demand for value add services such as fraud • Fast growing revenue base driven by nascent protection, loyalty solutions and data analytics payments markets and developing customer base • Significant growth opportunity in Saudi Arabia • Significant headroom to grow and win outsourcing contracts 10
Strategy Growing our relationships with customers Capabilities Pan regional presence Market leading products Value added services Customer delivery Merchant Solutions Merchant Solutions Issuer Solutions Issuer Solutions POS solutions Value added services • Developed a large outsourcing relationship • Long term direct merchant customer • Recently added Card Control services with one of Africa’s largest banks to the cards hosted on our platform • Recently rolled out our new N-Genius • Acquirer processing services started in point of sale devices across their fleet • Gives cardholders greater control by Namibia, Uganda and Botswana in 2013 allowing them to turn cards on and off, • Enables live processing of in flight limit transaction types and manage • Relationship widened to providing transactions and reduces fraud rates spending limits Merchant and Issuer Solutions across 13 countries 11
Strategy Growth in cross-selling and value added services Next generation POS in development N-Genius POS rollout progressing well Strong Internal Governance • • Rolled out over 18,000 POS units to UAE merchants Micro POS device that allows consumer to use their smartphone as the PIN keypad • Now live in Africa • Our lowest cost device • Standard Bank using POS in two countries, with a further • three to follow in coming months Planned launch H2 2020 Strong demand for our online gateway Issuer solutions in strong growth Strong Internal Governance • Card Control in demand by a number of financial Proprietary, market leading online gateway institutions; ADCB in UAE, First Bank of Nigeria In rollout and use by over 600 UAE merchants • Falcon has seen strong uptake since launch across all Pipeline of c2000 merchants has been accelerated by regions Covid-19 related events First to launch Direct Currency Conversion (DCC) at ATMs for Visa in the region 12
Strategy Digitising our capabilities through our strategic partnership with Mastercard Drive payments growth: Using existing card and POS models, with a future vision to extend beyond Address regional trends: Need for low cost solutions, low levels of financial inclusion, fragmented infrastructure Put customers first: By improving interoperability between participants in the ecosystem and working with mobile network operators Developing capabilities Develop new solutions and alternative payment methods: to lead and respond to • Enabling QR code or text message supported payments, through digital trends in our mobile devices, for issuers and merchants region • Enabling mobile based virtual card creation for consumers 13
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