Welcome to Lesaka Tech's Webcast for the Third Quarter of Fiscal 2025. As a reminder, the webcast is being recorded, and the presentation can be accessed through the webcast link provided. Management will address any questions you may have at the end of the presentation. [Operator Instructions] The webcast link as well as our press release and investor presentation are available on our Investor Relations website at ir.lesakatech.com. Lesaka filed its Form 10-Q after the U.S. market closed yesterday, which is also available on our website. During this call, we will be making forward-looking statements. I ask you to look at the cautionary language contained in our Form 10-Q regarding risks and uncertainties associated with forward-looking statements. As a domestic filer in the United States, we report our results in U.S. dollars under U.S. GAAP. However, it is important to note that our operational currency is South African rand, and as such, we analyze our performance in rand, which is non-GAAP. This assists investors in understanding the underlying trends in our business. As you know, the company's results can be significantly affected by the currency fluctuations between the U.S. dollar and the South African rand. I will now hand over the webcast to Dan.

Thank you, Phil. Good morning and good afternoon to our respective shareholders in the U.S., South Africa, Europe and Asia. I will start the presentation by taking you through the key developments for the quarter, followed by the Group's financial performance. Steve will present the Merchant division, Lincoln the Consumer division and Naeem the Enterprise division. Ali will conclude with the outlook for the rest of our current financial year to June 2025 and will also provide guidance for our 2026 financial year. I characterize the past quarter as one of solid traction in the strategy that we are executing against. Our Consumer division had a standout quarter with record EPE transactional account enrollments, lending and insurance originations. It is pleasing to see the impact of the reorganization and rejuvenation of our consumer business that we undertook over the past 3 years really coming to the fore. This momentum continues into quarter four. In early March, we concluded the acquisition of Recharger with 1 month's performance included in our Q3 results. Recharger augments our alternative payment offering and marks a turning point in the transition of the Enterprise division to contribute to our earnings. In line with the execution of our strategy, we advanced the optimization of our Merchant and Enterprise divisions. We are building a multi-product fintech platform organized around our customers with M&A being a key part of our strategy. The acquisition of Adumo in quarter two of this financial year has significantly expanded our Merchant division. As we continue to scale, the integration of product and people is core to our success, and we place a great deal of importance on the optimization, integration and augmentation of our investments. This process also includes realigning our capital allocation and efforts towards areas where we see significant growth, but…

Thank you, Dan. Good afternoon and good morning, everyone. Before I discuss the Merchant division's third quarter results and KPIs, I would like to briefly recap the key takeaways from our recent Investor Day. Firstly, Lesaka is a business that has the rare capability to serve merchants of all sizes across both formal and informal markets. This enables us to capture volume across the market spectrum from micro merchants to large national retailers, which is not common in Africa. Secondly, we are at the epicenter of the digitization trend for the markets that we serve, processing increasingly larger volumes every year, which gives us valuable data and insights into the activities and needs of our merchants. As a result, we can use this unique position to develop and sell a wide range of solutions that help our merchants across their financial life cycles. We use these insights to provide a comprehensive suite of products encompassing software, card acquiring, cash and access to capital. Thirdly, we have a differentiated go-to-market capability that enables us to reach merchants across the 5 countries in which we operate. We continually invest in and evolve our solutions, teams, infrastructure and technology to ensure our platform and ecosystem offer holistic solutions that enhance and add value to our merchants' businesses. Looking at our third quarter performance. Our merchant acquiring offering now has over 81,000 points of presence, demonstrating the additional scale that Adumo has brought to our merchant customer base. This acquisition enhanced our product set both in terms of hardware and software integrations, bolstering our ability to compete. Throughput on these devices was ZAR 9.9 billion for the quarter compared to ZAR 3.9 billion a year ago. The inclusion of Adumo for the quarter accounted for the majority of this strong growth and was supported…

Good morning and good afternoon, everyone. I'm pleased to report on another extremely successful quarter for the Consumer business. Today, I will focus on the quarter three results, but refer you to our recent Investor Day webcast for detailed explanations of our consumer offering, strategy and business model. Our core value proposition is built around addressing pain points of our primary market, permanent SASSA ground recipients. We currently serve 1.9 million consumers every month on our EasyPay Everywhere and EasyPay Payouts platforms. We begin the cycle by helping our consumers receive their money and deposit their funds with us. This includes helping them collect their government grants or employee benefits, which are very critical in our markets. Then we help them manage their money. We enable them to make bill payments to hundreds of billers quickly and easily and provide them with a simple digital banking solution and Mastercard debit card to conduct their daily spending or withdrawals. Once we've gotten to know our customers, we can then help them borrow money. Since we can see their funding and spending activities, we can use this data to underwrite small, short to medium-term loans. For most government grant recipients, we are the only regulated credit provider for this Consumer segment in the market. And finally, we can help them protect their assets and families. We sell small amounts of insurance to help their families in case of death. Every aspect of our product suite, value proposition and distribution model are designed with this customer in mind and the results have been exceptional. According to the latest SASSA data, we increased our market share this quarter to 13%, which is approximately 1.5 million permanent grant recipients. However, on a revenue basis, our estimated share is just under 7% of the ZAR 25…

During Q3 FY '25, we continued rebuilding and restructuring the Enterprise business. We focused on repositioning the products and services to deliver on the requirements internally within the Group and developing a robust external enterprise offering. As noted in previous quarters, during Q3, we exited the point-of-sale hardware business and incurred costs related to this that has been taken into the Q3 results. Further, we look at exiting the payment card hardware business. Although this impacts revenue and costs, we will see the benefits in FY '26 as these products contributed negatively to EBITDA. We continue investing in and upgrading our technology as well as investing in senior executives to roll out strategy in FY '26. We have new products that have been launched and we are excited about the opportunities these products will deliver. We are developing our enterprise as a material Group adjusted EBITDA contributor in the coming years, which is why we are investing into it. The acquisition of the Recharger business closed in March 2025 and we have commenced integrating this business into the Group's Enterprise division. This will be a significant contributor to the Enterprise division and will create an important position for the Group in the electricity vending business. I will talk in more detail about the business in the next slide. As mentioned earlier, FY '25 is very much a bill year for the Enterprise division with a significant amount of uncapitalized development expenditure and restructuring costs impacting EBITDA this quarter. The result this quarter was an EBITDA of ZAR 2 million, down from ZAR 14 million last year. EasyPay, our payment aggregator solution enabling B2B connections for bill payment and alternative payment solutions is embedded in the major retail businesses across Southern Africa as well as smaller retailers. During Q3 FY '25,…

Thank you, Naeem. Good day, everyone. Turning to our guidance for full year FY '25. We are reaffirming our revenue guidance of ZAR 10 billion to ZAR 11 billion, net revenue guidance of ZAR 5.2 billion to ZAR 5.6 billion and Group adjusted EBITDA guidance of ZAR 900 million to ZAR 1 billion. At the midpoint of the ranges, this implies a net revenue increase of 42% year-on-year and a Group adjusted EBITDA increase of 37% for FY '25, continuing the strong growth trend of the past few years. As mentioned before, we believe net revenue, which eliminates the effect of changes in revenue mix between agency and principal sales of airtime, is a more appropriate indicator of top-line growth for our business than gross revenue. Looking at FY '26. We are now including revenue and net revenue guidance and confirming the Group adjusted EBITDA guidance given last quarter. For FY '26, we anticipate revenue of ZAR 11.4 billion to ZAR 12.2 billion, net revenue of ZAR 6.4 billion to ZAR 6.9 billion and Group adjusted EBITDA of ZAR 1.25 billion to ZAR 1.45 billion. From the midpoint of FY '25 to FY '26 guidance, this implies 12% revenue growth, 23% net revenue growth and 42% growth in Group adjusted EBITDA. At the midpoint of the range, this would imply a Group adjusted EBITDA to net revenue margin of 20%. We are also adding a new guidance measure for FY '26 year-end, positive net income on a U.S. GAAP basis. We expect that our Q4 FY '25 and FY '26 results will be driven by growth across each of our divisions. Our Consumer division has had an excellent FY '25 to date and we expect the momentum to continue into FY '26. We have materially and profitably grown our EPE…

[Operator Instructions]

We will now open for Q&A addressing questions submitted online. [Operator Instructions] The first question is from Frank Geng at Briarwood Capital. Another excellent quarter in Consumer. Comment on your market share gains in this business? And has this continued into April and May?

Thanks, Frank. If you just go back to what Ali was saying, we've made significant investments in our people, technology, the value proposition and the distribution. Those -- that investment has paid off in the sense that we've now been able to grow our customer base by 70% year-on-year to 1.5 million customers. We now have 13% market share in that base. But what you've seen over the last two months is that we've had record sales where we've taken more market share than our natural market share from competitors. And that is a vindication of the strategy that we embarked on two or three years ago. So we see more growth that's coming. We see more customers coming to us because of the value proposition that we've put there. But what is also pleasing is that at the very same time that we're growing our customer base, we've seen a growth in our ARPU. We've seen our ARPU grow from ZAR 90 a year ago to ZAR 106. So going forward, we still see, as Ali was saying, lots of good runway with both account growth and the growth in our ARPU.

Our next question comes from Theo O'Neill at LHR Research. How deep could the endpoint for penetration end up?

If you think about our penetration in the insurance space, we have invested in this product as well. We've grown at 27% in terms of policies. We are now sitting with over 0.5 million insurance policies in place. And we've got a penetration now that is above 34%. We think that, a, we can start to grow that penetration rate into the 40s, but the biggest opportunity is outside the EPE base. We've built a new system that will enable us to be able to go to '26 with the SASSA base so that we can attract customers that are not EPE customers and be able to sell our product. The next opportunity is as we start to think about customers beyond the grant space, we think that our funeral policy is very competitive and will be attractive in that environment. So we still see a lot of room to grow with our insurance product, both within the EPE base, outside the EPE base into the grant space and then outside the grant space.

We have a question from Ross Krige at Investec Securities. In your Investor Day, you highlighted that the merchant market is expected to grow at 10% to 15% compound annual growth rate over the next five years. That said, two of your key merchant contributors, card acquiring and ADP appear to be growing slower than the market. Can you give us any insight on why this is currently the case and what will change going forward for these businesses to grow in line with the market or higher than the market?

Thanks, Ross. Our top-line growth metric is net revenue. This is growing at 58% year-on-year, inclusive of M&A, with our organic growth component of this being at or around the market rates previously indicated. It's important to understand that our net revenue contribution is a function of the net revenue generated from our full product suite. Your question is specific to the net revenue on card acquiring and ADP. To clarify, we do not disclose the net revenue at a product level. But having said that, our card acquiring net revenues are growing at market and we are confident on a go-forward basis that we can continue with this momentum and exceed the market rates that we've previously discussed. In relation to ADP, it's important to draw a distinction between the prepaid component and our supplier payments business. Focusing first on the supplier payments piece, we had stunning growth in the year that just passed at 57%. This is a healthy contributor to net revenues and acts as a strong pull-through product on our cash acquiring and card acquiring services, filling our wallets from which supplier payments are enabled. On the prepaid space, we underwhelmed with growth at 4% with a correlation in net revenue around that level. Having said that, we have now a number of interventions and we are very confident that we will restore that growth rate back to the mid-teen type levels. The last point that I want to make is that over the last period, we have spent a fair amount of time organically and inorganically building our foundation, broadening out our product suites, deepening our segment penetration and distribution capability. In the year ahead, our focus is very much now on bolstering our unit economics, achieving the operational leverages that we have previously communicated and proving our business model.

Thanks, Steve. I have another question. This one is from Luca at SPG Securities. Team, please elaborate on the Enterprise division's contribution to Group adjusted EBITDA and what in the division has caused the deterioration of this contribution to both revenue and Group adjusted EBITDA?

As mentioned in the presentation, for us, Enterprise FY '25 was a year of rebuild and restart. We closed legacy businesses, and obviously, that had contributed negatively to both revenue and EBITDA. But we also invested into new verticals such as the switch, as Ali mentioned as well, into the electricity, both from an acquisition perspective as well as organically growing that business. We've also invested into our EasyPay platform, which is now ready and we'll be launching that on a much more broader basis and into different enterprises. So as we look into FY '26, we're expecting contribution to be north of 10% of segment adjusted EBITDA and this becoming a more meaningful part of the business going forward.

A question from Sven Thorsen at Anchor Securities. You have consistently invested in a large percentage of your growth CapEx in cash vaults, yet this appears to be a low growth business compared to your other offerings. How do you think about capital allocation in this context? Would it not be better to invest expansionary CapEx in your higher growth businesses?

Thanks, Sven. Let me address CapEx more generally. We're in the phase of investing in our business as we develop and scale our platforms. Over the last year, we spent approximately ZAR 360 million in CapEx. And going forward, I don't expect that to change materially. However, if you look at the guidance we have provided on earnings, our midpoint this FY '25 to FY '26, we expect our earnings to grow in excess of 40%. On the similar base of CapEx, one can clearly see the benefits of our investments coming through in operating leverage in our business. If I turn specifically to the question of the cash vaults, we don't view our vaults as a stand-alone business or product. It's part of our holistic offering to our merchants. The vaults quite simply digitize cash. They turn it into an electronic store of value for our merchants. In time, we migrate our merchants to card acquiring to ADP sales and we layer on credit to enable them to fund and grow their businesses. These other ancillary services we offer them are asset-light and lead to attractive unit economics when taken as a whole and strong cash conversion when taken as a whole. Of course, as we more fully serve our customer needs, we will integrate these businesses more and more to achieve these economies of scale and integrated unit economics.

Thanks, Dan. I can confirm all the technical issues have been resolved. I think we have time for one more question. I have another one from Frank at Briarwood Capital. To the Group, how do you think we should think about margin evolution within your Group per division and as a whole? Where should margins get to over time?

Thanks, Phil. I'll take that. And thanks, Frank, for the question. So the Merchant division had a segment adjusted EBITDA to net revenue margin of about 19% in Q3 and the Consumer division of about 26%. I would note that year-on-year, the Consumer division has increased from about 21% to about 26%. So there's a material uplift in operational leverage at play there. And we have an expectation that the margin in the Consumer division could and should be north of 30% over time. I have a similar perspective on the Merchant division. The evolution that, that business is going through, we hope and expect will mirror what was achieved within the Consumer division and an EBITDA margin of 30% there is certainly obtainable. Within the Enterprise division, obviously, it's an earlier stage of evolution, but we certainly believe that margins -- EBITDA margins of north of 20% in the short run are achievable there. In the aggregate, the Group adjusted EBITDA to net revenue in FY '25 was 18%. The expectation of circa 18%, it will be based on the midpoint of the guidance range. In FY '26, we expect it to be north of 20%. So that's effectively a 2% margin increase in a single year given that our Group adjusted EBITDA is a composite of the divisions, minus obviously, the Group costs, which will -- we expect to grow far slower than revenue growth. We would trend towards a 30% Group margin in that context. And we think that, that is, as I say, achievable in the medium-term at a similar evolution as we expect to achieve between '25 and '26.

Thank you, Ali. Those are all the questions we have time for today. For the questions that we haven't gotten to, I will contact you directly to answer those questions. Thank you so much for attending. And have a good afternoon.