Good day, ladies and gentlemen, and welcome to the Net 1 UEPS First Quarter 2015 Earnings. [Operator Instructions] Please also note that this conference is being recorded. I would now like to hand the conference over to Dhruv Chopra. Please go ahead, sir.

Thank you, Devon. Welcome to our First Quarter 2015 Earnings Call. With me on the call today are Dr. Serge Belamant, Chairman and CEO; and Herman Kotze, our CFO. Both our press release and Form 10-Q are available on our website, www.net1.com. As a reminder, during this call, we will be making forward-looking statements, and I ask you to look at the cautionary language contained in our press release and Form 10-Q regarding the risks and uncertainties associated with forward-looking statements. In addition, during this call, we will be using certain non-GAAP financial measures, and we have provided a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures. We will discuss our results in South African rand, which is a non-GAAP measure. We analyze our results of operations in our 10-Q and our press release in rand to assist investors in understanding the underlying trends of our business. As you know, the company's results can be significantly affected by currency fluctuations between the dollar and the rand. With that, let me turn the call over to Serge.

Thank you very much, Dhruv, and good morning to all of our shareholders. Our first quarter results will speak for themselves. $0.60 in fundamental earnings per share, which translates into a 74% growth in rand terms or 62% growth in dollar terms when compared to our first quarter 2014. Our businesses are currently firing on all cylinders, and the new opportunities we have created over the last few years are now bearing fruit. Today, Herman will provide the details of our financial performance, whilst I concentrate on 3 major issues. The first is our growth strategy going forward, the second is the new SASSA request for proposal, and the third is an update on our growing businesses. Firstly, let me point out that our strategy has always been conservative. We first and foremost focus on ensuring that the company can survive any potential disastrous event. Our risk factors certainly spell out what some of these calamitous events could be, and it is my job as Chairman of the group to guard against these eventualities if they, in fact, came. I make the statement not as a way of the warning that those calamitous events will occur but rather to give you, all, an insight in how we grow our business and make plans for the future and in response to the many questions we have received from our stakeholders. Our strategy has always comprised of both offensive and defensive components. Offense is always easier because it's clear[ph]and fresh. And realistically, the new initiatives do not work are certainly not disastrous for the company. Our offense strategy is based on creating new opportunities in different market segments in which we currently operate, thus minimizing the risks associated with single-trend business models with a limited number of customers. More importantly, we wish…

Thank you, Serge. I will discuss the key results and trends within our operating segments for the first quarter of 2015 compared to a year ago. For Q1 of 2015, our average rand dollar exchange rate was ZAR 10.76 compared to ZAR 10 a year ago, which negatively impacted our U.S. dollar-based results by approximately 7%. The U.S. dollar, which is our reporting currency, is currently enjoying a period of strength against all major currencies due to ongoing global economic and political uncertainties, while the rand is one of the world's more volatile currencies and has been adversely affected due to South Africa-specific risks. The rand is currently trading at around ZAR 11.25 to the dollar, and the stronger dollar will have a detrimental impact on our overall fiscal 2015 results. We have led a solid foundation for what is promising to be a very eventful year. We have continued to sustain our top and bottom line growth during Q1 2015. On a consolidated basis, for the first quarter of 2015, we reported revenue of $156.4 million, an increase of 36% in constant currency. We reported fundamental earnings per share of USD 0.60, which grew by 74% in rand compared to a year ago. Our fully diluted weighted share count for Q1 was 47.3 million shares and partially reflected the positive impact of our repurchase of 1.8 million shares from one of our BEE partners in August 2014. Our Q2 2015 share count should fully reflect this repurchase and is expected to be around 46.5 million shares. Let me now turn to a discussion of our segments and their financial performance during Q1 2015. South African processing recorded revenue of $60.3 million during Q1 2015, 13% higher in local currency, driven primarily by increased low-margin transaction fees generated from beneficiaries…

[Operator Instructions] Our first question comes from Dave Koning of R.W. Baird. David J. Koning - Robert W. Baird & Co. Incorporated, Research Division: So I guess first of all, I just wanted to review the financial inclusion segment. You've done a great job managing extremely fast growth there, and this quarter's sequential growth wasn't quite as big as the last few. And certainly over time, it's hard to grow as fast as you were every quarter. But I'm just wondering, are there any new products that are going to start to help us? The benefits from the lending business and from mobile top-up isn't so good for a while. Is there a new product that might start to layer on that, that might keep the growth engine going?

Yes. It's Serge here. Obviously, I think apply to unit, so it's difficult to sort of describe a strategy clearly in a few lines, written lines. But the concept of our lending has never been based around purely lending money to people for the sake of doing so. So for example, I think at one stage, if you remember, we spoke about our initiative in terms of putting out or warding out a massive amount of solar-driven lamps but simply because we face the major problem in South Africa vis-à-vis electricity. Electricity is not only not available in many places, but it's also really expensive, and this actually affects the lives and specifically the educational ambit of young children that live in deeper and rural areas simply because they have no ability to be able to actually study or read because there is no way that they can see anything with just a single candle. Now we've rolled out already 1 million of these lamps as a test to ensure that, in fact, something like this would actually work out. And it is working out. Now more importantly, I also mentioned that our latest lamp pushes in us doing something that quite while certainly is the world's first, also incorporates cell phone chargers and is also a WiFi hub. And we are currently working with organizations, for example, such as Google and Facebook, in order to provide basic communication to the poorest of the poor again for educational purposes at least to engage them in the so-called greater arena of being able to communicate between themselves. Now once again, our loans are going to be driven around providing to them such lamps on a loan basis, allowing them to be able to purchase it as quickly as possible but focusing the loan to something that is far more useful than simply money given to them whereby the money could be utilized for the wrong reasons or for the wrong intentions. And these are the type of products, we brought half a dozen of those, including job creation or at least job identification or job matching, which we are currently rolling out. And we're already starting to get a very, very, very good market reception to all of those particular products. So that's the way we're going so we get to see a lot of our extended loans migrating to becoming focused loans and, by doing that, being able to actually create a new growth potential business simply because of the fact that we are bringing additional value except simply by saying we're simply being able to offer a new loan. So that's the type of stuff that we are doing at the moment.

And Dave, just to add to that, outside of the loan space but also in the part of the financial inclusion segment would be our insurance initiatives. So we are working very hard to ensure that our insurance license is restored. And hopefully, in the next couple of quarters, we will be commencing the sale of very specific insurance policy, life insurance policies for our base of cardholders and customers. And we obviously hope that over the next year or 2, we can certainly show the same kind of exponential growth in the marketing and the selling of those specific policies as we have with the loans. David J. Koning - Robert W. Baird & Co. Incorporated, Research Division: Okay, great. And I guess just secondly, just on the share count, a couple of things. I guess, one, you mentioned selling some stock, some insider selling in. And just, I guess, wondering what the rationale is just behind that given that the stock still seems pretty reasonably priced, and then you mentioned repurchase activity from a corporate perspective. You mentioned that's one of your uses of cash. Could that ramp up over the next couple of quarters as well?

I can probably answer that because I'm one of the parties that is selling some of the stock. And the reason for that is because I myself at my tender age of 61 years old have got to make sure that my future is a little bit more, let's call it, cash-based rather than share-based, number one. But more importantly, I did mention the fact that we are creating or that we have created a new company in the United Kingdom, and I will be spending quite a bit of my time in that particular region in order to spearhead the new company and the new sort of activity that we are going to be conducting from Europe. I am after all European, and so I have quite good connections in the Greater Europe. And because of that, I decided, as I needed to, I have a little bit of spare cash to be able to make sure that I could provide myself with the right sort of accommodation and the right standard of living. So I don't think there is anymore sort of [indiscernible] around that than this, considering that I don't think I've sold a share also in the last 5 years. So I hope that, that sort of answers the question.

On the repurchase side, that -- obviously that's one of the uses of cash that we will be looking at. And obviously, we prioritize the use of cash as demanded by the business development activities at the time. But if the opportunity presents itself at the right price, obviously, buyback is something that we will consider.

Our next question comes from Bruce Galloway of Galloway Capital.

Getting back to the insider selling, that obviously looks pretty bad to the investment community that there's so much insider selling. And I understand that a lot of it is due to the high tax rate for the employees. But is there any way -- with the company's cash balance at $81 million, is there any way that the company could lend their key employees capital to pay the taxes instead of doing the insider selling? And also, with regard to the financial inclusion business, it seems that that's the real growth worth of this company, and it seems like that's the crown jewel and the technology play. Have you considered spinning that off to the shareholders and possibly locating it in -- from UTA or some place like that where they could get a higher multiple?

Again, I'll let Herman answer the first part because it's more financial in nature, but the second part I can answer. During my sort of introduction, I did mention the fact that we are certainly spending a lot of time and we have spent a lot of time looking at what we believe are the reasons why the company's financial performance is not reflected in the share price. And candidly, I know a lot of our shareholders are very upset about it, and so are we. So to be totally honest, it's certainly something we now are applying our minds very seriously to it. And normally, when we apply our minds to anything seriously, we normally come out with a solution. So I think what you just mentioned is certainly, and without going into too much detail, it’s certainly in the books, and probably on a fairly larger scale than a single business line simply because we do believe that the majority of our businesses outside of our government business should be attracting P/E ratios way up north of the 10 rather than to be sitting on the 3 or 3.5 or 4. And candidly, we all are very much reducing. I think we've reached the stage where both businesses can stand on their own 2 feet and are sizable enough in terms of EBITDA because they do represent a very significant part of our EBITDA. And we believe that you are quite right. If they had to be separated with the rest, new shareholders to be -- to participate when I think, without a shadow of a doubt, that they would probably regain or at least attain the sort of P/E ratios that they certainly deserve. So that is something that we've been working on for quite a while. We are working for 1 or 2 little parameters to -- for specialists to [indiscernible]. But we were certainly hoping that by the next quarter, we should be able to come back to our shareholders and to tell them exactly what we believe can be done, then how quickly it could be done. And candidly, at my age, I like things that are done rather quicker rather than slower. So I hope that we'll give you at least a little bit of confidence that we are not ignoring this particular very, very tricky and tricky issue. Herman, do you want to answer the first part?

Sure. So just on the first part of your question, Bruce, obviously, unfortunately, SEC regulations and other legislation prevents any form of financial assistance from the company to any of the directors or officers. So that's obviously something that prevents us from doing so. And if -- even if that were not the case, I should also just point out in terms of South African tax legislation, the granting of the loan itself would probably constitute a perk. So you would be caught in a kind of an iterative process of starting to pay more taxes on taxes. So for that reason, the company can't do it.

[Operator Instructions] Our next question comes from Russell Anmuth of Gotham Holdings.

So a couple of questions. One, could you pick up from last conference call where you talked about a new comprehensive full-blown mobile product. Obviously, seen the terrific announcement this morning in India. Is that strictly for the VCC product? Or does that lead into something that's more encompassing also? And then in general, right, what's the mobile strategy? And then secondly, can you offer any kind of an update on activities with MasterCard and -- right, and the countries you're trying to break into around the world?

Okay. Well, 2 very good questions. The first one is quite simple. Our mobile strategy, as you know, was always groomed[ph] around our ability to generate, for lack of a better word, onetime credit card numbers completely offline, which resulted into -- communicate with the issuing bank, which could be protected either by fingerprint, which now we know with the iPhone, fairly easy to do it but could be protected by fingerprint or by voice in an offline environment, which therefore makes these particular onetime cards absolutely secure and impossible to clone or to copy. Now one thing we've done is that we have licensed people in Spain to actually use that technology for their own good, and that's purely a licensing agreement. We have launched this particular product in United States, which is starting to ramp up reasonably too slowly for my liking, but it's actually ramping up. We've now signed a deal in -- as you know, in India, and we are utilizing this particular product already in South Africa. Now one thing that is clear is that it is a -- purely a payment product. And I think your question, if I understood it correctly, was, well, what can you catch? In other words, shouldn't we be creating the opportunities to actually be able to use the payment in sum, as a package? In other words, let's create the need for the payment, not only to have the payment solution. And that is something that, without a shadow of a doubt, that we decided we want to do. And the latest mobile application that we are launching are also providing not only the payment part but the substance of what, of the reason why you would want to use that payment. Suitable example could be that you…

MasterCard.

Oh, the MasterCard. The MasterCard, once again, I'll tell you, I will tell everybody that now that we -- in fact, we have signed a deal with -- in one particular country together with MasterCard. So that's a good news. We've actually cut right in the hurdle. Is it worth talking about, probably not, okay? It's incredibly small, but it's a start. What's more important today is that we actually, at the moment, tendering with MasterCard on 2 other much larger deal. One of them includes 11 countries, and the other one includes one fairly large country. So I'm not saying that MasterCard, I don't think, that was the fastest organization in the world, and I don't think they quite excel or focus or nimble just like we are. But one thing is for certain. They have taken us seriously, they're taking our products seriously, and at the moment, they're really looking at us as the solution for government or government-based, let's call them, people that are wanting to help the poorest of the poor on the worldwide basis. And they're looking at us as being able to provide a solution. We would like to grow a little bit further than that simply because we believe our product should actually be applied to anybody that there's a MasterCard, including you and me. We are not there yet, but we'll start with what we currently doing. And I'm starting to get a good vibe that I think we're going to land up with some very, very good margins after the relationship.

Okay. So on the -- just can I follow up a little bit on both? So on the tendering, are you -- just sounds that there's 2 separate tenders going on. One for 11 -- one that sounds like a consortium for 11 countries, and the other is a very large country. So are those situations that should play out over the next 3 to 6 months? Is that how one to think about it?

I think it's about right because I know one of them is already on the second round, and I believe there is only 3 rounds to it. It's always technology and then it's passing and then it's decision. So I think there is no doubt that to me, if we do not have those countries within the next 3 to 6 months, then we're not going to get them.

Does any -- does the competition, "whomever they are," are they able to offer an online, offline solutions like yours?

No. That's the beauty that I think even MasterCard knows this, is that -- remember that as soon as you're dealing with government, it's more than just payment. There is normally some other baggage that they want to be able to deliver that we can do. That's normally where other people have been quite strong. The Bolognese, these other solutions that do not interoperate with National Payment Systems that, for example, can access a MasterCard or a Visa asking them both. And this is what really gives us this tremendous advantage, and we really strongly believe that with the name of MasterCard beyond it as well, that must give us more than enough to be able to actually finalize these deals and claim these deals. So I still feel and so do my IT people feel very comfortable, and -- that, in fact, we are going to win a couple more, and we should rather win them sooner rather than later.

Okay. All very exciting, look further or that -- or not comes to [indiscernible] puts the company in a different light and a different zone, so to speak. On the mobile, can you talk -- right, talk about a more comprehensive product, right, which the tail doesn't wag the dog, and you're creating a -- right, an ecosystem? Where do you -- to drive demand? Where do you think geographically that you work to target that solution first? Or do you think about it in terms of geography?

Well, in terms of geography, it's obvious that obviously, we did not see in South Africa because here, we can test things out, and we can see how things work. And some of these are sort of legislative environment here, and banking environment is actually very, very, very controlled. So if you can penetrate the South African market, obviously, you're never going to make millions out of it because of obviously people. But certainly, it tells you that the product can work, and that, I think, we've done. We felt comfortable that the product line is ready for launch. Now it's obvious that India has always been, I think, in the mouths of anybody that wants to do any business. And you're counting 1-point-something billion people off your radar. Of course, you need how much money are you going to make per person. So for us, again, India for us is a question of scaling, and it's a question of getting hundreds of millions of people to use it through different channels. Although how much sooner are you going to be selling to individual people, we're going to be selling to companies that themselves are requiring the payment solutions to actually do what they want to do. And remember that our payment solution concept, debit card into credit card, which is not really a big thing in the U.S. because you accept debit. But in the rest of the world, a debit card cannot be utilized as a payment instrument on the Internet, whereby converting the debit to your credit card, we suddenly open up all the debit cards that have been issued to be utilized as payment instrument on the Internet. So then we see countries like, for example, India, the Philippines. We see, in some way, we already…

Okay. The -- to pick up off of that for a second, where is -- why exactly are you going to London? I kind of missed that. Is that to try to penetrate this market and to try to enable the VCC to -- right, to take off?

100% based on the [indiscernible]. They are 2 -- there are a couple of reasons why we have opened London. One of them is because we believe our products can be utilized in Europe in a big way. It's also a lot closer to the United States, so it also allows us to actually, let's call it, tackle the First World countries from the work environment. And also because after the previous discussion we had with the previous gentleman, there is also a good chance that a number of our businesses might then be starting to be operated from the U.K. rather than from South Africa.

What kind of partnerships do you have to construct to enable the VCC to really [indiscernible] the adoption phase?

Yes. We've got 3 models because [indiscernible] space, which is purely a licensing model. We license our patents to a particular organization, and they go out and do whatever they want. Then we've got an -- a second early model whereby we actually provide the engine of the solution. In other words, we sit beyond the issuing bank, and we make sure that this particular -- this number comes to us, and we are the ones that are going to ensure that, in fact, this particular VCC or that we call the VCpay Virtual Card is actually valid or not. That's what we started to do in Mexico. And then we've got a third model. It is where we provide a turnkey solution, sort of particular institutions, they need a credit card issuer bank to actually do it themselves and to do it completely outside of us, in which case, we provide a license, we provide support, and we obviously get a piece of the transaction fee. So that's the sort of the 3 models that we've currently implemented and with all 3 model implemented in different places. And we are sort of looking to see which one, in our view, is going to be the one that we want to scale, depending on what are the best returns for us. The danger sometimes about licensing or purely licensing is if somebody sits with the license and pays you a very small fee on a yearly basis, but you're not at all in control to actually scale. And we prefer, at this point in time, to be part and parcel of the scaling mechanism because we quite good at these operations, and we can -- or we're quite good at scaling. And we prefer to actually play a substantial role in deploying the particular technology or deploying the use of the technology rather than to rely on somebody else to do it on our behalf.