Net 1 UEPS Technologies, Inc. Reports Fourth Quarter and

JOHANNESBURG, SOUTH AFRICA--(Marketwired - August 20, 2015) -

Q4 2015 Revenue and FEPS of $164 million and $0.58, a constant currency increase after adjusting for the SASSA recovery in 2014, of 22% and 30%, respectively;

Strategic investments in Hong Kong and Nigeria-based businesses and ZAZOO partnerships with Funifi and BitX; and

Cash and equivalents of $117.6 million as of June 30, 2015, and operating cash flow of $31.8 million in Q4 2015.

Net 1 UEPS Technologies, Inc. (NASDAQ: UEPS) (JSE: NT1) today released results for the fourth quarter and full-year fiscal 2015.


Summary Financial Metrics

		Three months ended June 30,
		2015	2014	% change in USD	% change in ZAR
(All figures in USD '000s except per share data)
Revenue		164,286	182,753	(10%)	4%

	Revenue excluding SASSA recovery⁽¹⁾⁽²⁾	164,286	156,118	5%	22%

GAAP net income		23,914	28,584	(16%)	(3%)

Fundamental net income⁽¹⁾		27,233	44,362	(39%)	(29%)

	Fundamental net income excluding SASSA recovery⁽¹⁾	27,233	25,185	8%	24%

GAAP earnings per share ($)		0.51	0.59	(13%)	1%

Fundamental earnings per share ($)⁽¹⁾		0.58	0.91	(36%)	(26%)

	Fundamental earnings per share excluding SASSA recovery⁽¹⁾	0.58	0.52	12%	30%

Fully-diluted shares outstanding ('000's)		46,944	48,855	(4%)	(4%)

Average period USD/ ZAR exchange rate		12.04	10.42	16%


		Year ended June 30,
		2015	2014	% change in USD	% change in ZAR
(All figures in USD '000s except per share data)
Revenue		625,979	581,656	8%	18%

	Revenue excluding SASSA recovery⁽¹⁾⁽²⁾	625,979	555,021	13%	24%

GAAP net income		94,735	70,111	35%	49%

Fundamental net income⁽¹⁾		108,205	101,343	7%	17%

	Fundamental net income excluding SASSA recovery⁽¹⁾	108,205	82,166	32%	45%

GAAP earnings per share ($)		2.03	1.51	34%	48%

Fundamental earnings per share ($)⁽¹⁾		2.32	2.18	6%	17%

	Fundamental earnings per share excluding SASSA recovery⁽¹⁾	2.32	1.77	31%	44%

Fully-diluted shares outstanding ('000's)		46,913	46,603	1%	1%

Average period USD/ ZAR exchange rate		11.43	10.40	10%

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

⁽²⁾ Revenue excluding SASSA recovery is Revenue earned during 2014 less approximately $26.6 million received from SASSA related to the recovery of additional implementation costs incurred during the beneficiary re-registration process in fiscal 2012 and 2013

Factors impacting comparability of our Q4 2015 and Q4 2014 results

Unfavorable impact from the strengthening of the US dollar against the ZAR: The US dollar appreciated by 16% against the ZAR during Q4 2015, which negatively impacted our reported results;
Higher revenue resulting from an increase in low-margin prepaid airtime and electricity sales: Our revenue has increased as a result of the growth of our prepaid electricity and prepaid airtime offering during Q4 2015, with prepaid airtime having lower margins compared with our other South African businesses;
Increased contribution by KSNET: Our results were positively impacted by growth in our South Korean operations;
Growth in financial services: The expansion of our financial services offering resulted in higher year-over-year revenue and operating income from UEPS-based lending during Q4 2015;
Ad hoc hardware sales in fiscal 2015: We sold more terminals and cards during Q4 2015 as a result of ad hoc orders received from our customers;
$26.6 million recovery of expenses and 2014 implementation costs: In Q4 2014, we received approximately $26.6 million, or approximately $19.1 million, net of tax, from SASSA related to the recovery of additional implementation costs incurred during the beneficiary re-registration process in fiscal 2012 and 2013; and
Fair value charge resulting from issue of equity instruments pursuant to BEE transactions: The fair value non-cash charge of $11.3 million related to our BEE transactions adversely impacted our reported results during Q4 2014.

Comments and Outlook

"I am thrilled with our 2015 performance as we were able to execute on our strategy extremely well. The continued local and international interest we receive as a result of our proven ability to implement state of the art, functional and robust solutions that allow for the financial inclusion of all citizens, as well as our card and mobile centric solutions that can be provided individually or in unison, provides us with a bespoke end-to-end financial technology solution relevant to both developed and developing world economies," said Dr. Belamant, Chairman and CEO. "Our ZAZOO initiative is gaining momentum as demonstrated by its financial performance, and its latest agreements with companies such as Uber, Microsoft, and BitX and our investment in T24. ZAZOO's pipeline has numerous other deals and it is well positioned to grow exponentially over a short period of time. We also believe that our entry into Nigeria via our investment in One Credit provides us the opportunity to deploy our entire solution in this vast, under-penetrated and profitable economy," he concluded.

"Our financial and operating performance, including the increased investment in our newer growth and international initiatives, continues to track the strategic developments in our business," said Herman Kotzé, Chief Financial Officer of Net1. "We expect to sustain the momentum in our business and continue our product, client and geographic diversification, and for fiscal 2016 anticipate our fundamental earnings per share to be at least $2.57, assuming an updated constant currency base of ZAR11.43/$1 and a share count of 46.7 million shares," he concluded.

Results of Operations by Segment and Liquidity

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

South African transaction processing

Segment revenue was $59.8 million in Q4 2015, down 32% compared with Q4 2014 in USD and down 22% on a constant currency basis. In ZAR, revenue increased 12% in fiscal 2015 compared to fiscal 2014 (after excluding the impact of the recovery in fiscal 2014 of implementation costs related to our SASSA contract). The increase in segment revenues, exclusive of such recovery, was primarily due to more low-margin transaction fees generated from beneficiaries using the South African National Payment System and more inter-segment transaction processing activities. In addition, revenue from the distribution of social welfare grants grew modestly during the year and was in-line with the increase in unique welfare cardholder recipients, net of removal of invalid and fraudulent beneficiaries, offset by the loss of MediKredit revenue as a result of the sale of that business.

Segment operating income margin was 19% and 44%, respectively, and decreased primarily due to the recovery of SASSA implementation costs in 2014. Segment operating income margin excluding the recovery of implementation costs was 20% for Q4 2014.

International transaction processing

Segment revenue was $42.6 million in Q4 2015, up 1% compared with Q4 2014 in USD and 17% on a constant currency basis. Revenue increased primarily due to increased transaction processing activities in South Korea during Q4 2015. Operating income during the year to date fiscal 2015 was higher due to increase in revenue contribution from KSNET, but partially offset by ZAZOO start-up costs in the UK and India. Segment operating income margin in Q4 2015 and Q4 2014 was 17% and 16%, respectively.

Financial inclusion and applied technologies

Segment revenue was $73.0 million in Q4 2015, up 14% compared with Q4 2014 in USD and 32% on a constant currency basis. Financial inclusion and applied technologies revenue and operating income increased primarily due to higher prepaid airtime sales driven by the rollout of our prepaid airtime product, an increase in the number of UEPS-based loans as we rolled out our product nationally, more ad hoc terminal and card sales and, in ZAR, an increase in intersegment revenues. Smart Life did not contribute to operating income in fiscal 2015 and 2014 due to the FSB suspension of its license. Smart Life resumed operating activities in early fiscal 2016, following the upliftment of suspension of its license by the FSB. Segment operating income margin was 27% and 28%, respectively, and decreased primarily as a result of more low-margin prepaid airtime and hardware sales.

Corporate/eliminations

The decrease in our corporate expenses in Q4 2015 resulted primarily from the non-cash charge related to the equity instruments issued pursuant to our BEE transactions in Q4 2014 and lower US government investigation and US lawsuit expenses, partially offset by increases in general corporate audit fees, executive emoluments and other corporate head office-related expenses.

Cash flow and liquidity

At June 30, 2015, we had cash and cash equivalents of $117.6 million, up from $58.7 million at June 30, 2014. The increase in our cash balances from June 30, 2014, was primarily due to the expansion of all of our core businesses, and to a lesser extent, to the cash conservation resulting from the sale of loss-incurring businesses, offset by provisional tax payments, investments, capital expenditures and the scheduled Korean debt repayment in October 2014.

Excluding the impact of interest received, interest paid under our Korean debt and taxes, the increase in cash from operating activities resulted from improved trading activity during fiscal 2015. During fiscal 2015, we paid interest of $3.6 million under our South Korean debt facility. Capital expenditures for Q4 2015 and 2014 were $11.6 million and $6.6 million, respectively, and have increased primarily due to the acquisition of more payment processing terminals in South Korea and ATMs in South Africa.

Use of Non-GAAP Measures

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

Fundamental net income and fundamental earnings per share

Fundamental net income and earnings per share is GAAP net income and earnings per share adjusted for (1) the amortization of acquisition-related intangible assets (net of deferred taxes), (2) stock-based compensation charges and (3) unusual non-recurring items, including the amortization of KSNET debt facility fees and US government investigations-related and US lawsuit expenses; as well as in fiscal 2015, a refund (net of taxes) related to Korean industry-wide litigation that has now been finalized and in fiscal 2014, the equity instruments charged related to our December 2014 BEE transactions, transaction-related costs and the net loss on deconsolidation of subsidiaries and business, net of tax.

Fundamental net income excluding SASSA recovery and fundamental earnings per share excluding SASSA recovery is Fundamental net income and earnings per share less the recovery received from SASSA in 2014 of $19.2 million, after taxes.

Management believes that the fundamental net income and earnings per share, as well as the fundamental net income and earnings per share excluding SASSA recovery, metrics enhances its own evaluation, as well as an investor's understanding, of our financial performance.

Attachment B presents the reconciliation between GAAP net income and earnings per share, basic, to fundamental net income and earnings per share, basic and to fundamental net income and earnings per share, basic excluding recovery from SASSA.

Headline earnings per share ("HEPS")

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

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

Conference Call

We will host a conference call to review Q4 2015 results on August 21, 2015, at 8:00 Eastern Time. To participate in the call, dial 1-855-481-5362 (US and Canada), 0808-162-4061 (U.K. only) or 0-800-200-648 (South Africa only) ten minutes prior to the start of the call. Callers should request "Net1 call" upon dial-in. The call will also be webcast on the Net1 homepage, www.net1.com. Please click on the webcast link at least ten minutes prior to the call. A webcast of the call will be available for replay on the Net1 website through September 13, 2015.

Fiscal 2016 earnings call dates

We expect to host quarterly conference calls to review our fiscal 2016 quarterly results in accordance with the schedule provided in the table below:


Conference call to review quarter ended:		Tentative date

September 30, 2015 (Q1, 2016)		November 6, 2015
December 31, 2015 (Q2, 2016)		February 5, 2016
March 31, 2016 (Q3, 2016)		May 6, 2016
June 30, 2016 (Q4, 2016)		August 26, 2016

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

About Net1 (www.net1.com)

Net1 is a leading provider of alternative payment systems that leverage its Universal Electronic Payment System ("UEPS") or utilize its proprietary mobile technologies. The Company operates market-leading payment processors in South Africa and the Republic of Korea.

UEPS permits the Company to facilitate biometrically secure, real-time electronic transaction processing to unbanked and under-banked populations of developing economies around the world in an online or offline environment. Net1's UEPS/EMV solution is interoperable with global EMV standards that seamlessly enable access to all the UEPS functionality in a traditional EMV environment. In addition to payments, UEPS can be used for banking, healthcare management, payroll, remittances, voting and identification.

Net1's mobile technologies include its proprietary mobile payments solution - MVC, which offers secure mobile-based payments, as well as mobile banking and prepaid value-added services in developed and emerging countries. The Company intends to deploy its varied mobile solutions through its ZAZOO business unit, which is an aggregation of innovative technology companies and is based in the United Kingdom.

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

Forward-Looking Statements

This announcement contains forward-looking statements that involve known and unknown risks and uncertainties. A discussion of various factors that cause our actual results, levels of activity, performance or achievements to differ materially from those expressed in such forward-looking statements are included in our filings with the Securities and Exchange Commission. We undertake no obligation to revise any of these statements to reflect future events.


NET 1 UEPS TECHNOLOGIES, INC.
Consolidated Statements of Operations

		Unaudited				(A)
		Three months ended				Year ended
		June 30,				June 30,
		2015		2014		2015		2014
		(In thousands, except per share data)				(In thousands, except per share data)

REVENUE		$	164,286	$	182,753	$	625,979	$	581,656

EXPENSE

	Cost of goods sold, IT processing, servicing and support		80,582		72,641		297,856		260,232

	Selling, general and administration		40,797		46,156		158,919		168,072

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

	Depreciation and amortization		10,294		10,041		40,685		40,286

OPERATING INCOME			32,613		42,647		128,519		101,798

INTEREST INCOME			4,467		4,824		16,355		14,817

INTEREST EXPENSE			1,096		1,761		4,456		7,473

INCOME BEFORE INCOME TAX EXPENSE			35,984		45,710		140,418		109,142

INCOME TAX EXPENSE			11,980		17,260		44,136		39,379

NET INCOME BEFORE EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS			24,004		28,450		96,282		69,763

EARNINGS FROM EQUITY-ACCOUNTED INVESTMENTS			219		96		452		298

NET INCOME			24,223		28,546		96,734		70,061

LESS (ADD): NET INCOME (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTEREST			309		(38)		1,999		(50)

NET INCOME ATTRIBUTABLE TO NET1		$	23,914	$	28,584	$	94,735	$	70,111

Net income per share, in United States dollars
	Basic earnings attributable to Net1 shareholders	$	0.51	$	0.59	$	2.03	$	1.51
	Diluted earnings attributable to Net1 shareholders	$	0.51	$	0.59	$	2.02	$	1.50

(A) - Derived from audited financial statements



NET 1 UEPS TECHNOLOGIES, INC.
Consolidated Balance Sheets

					(A)			(A)
					June 30,			June 30,
					2015			2014
					(In thousands, except share data)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents				$	117,583		$	58,672
	Pre-funded social welfare grants receivable					2,306			4,809
	Accounts receivable, net of allowances					148,768			148,067
	Finance loans receivable, net of allowances					40,373			53,124
	Inventory					12,979			10,785
	Deferred income taxes					7,298			7,451
		Total current assets before settlement assets				329,307			282,908
			Settlement assets			661,916			725,987
				Total current assets		991,223			1,008,895
PROPERTY, PLANT AND EQUIPMENT, net						52,320			47,797
EQUITY-ACCOUNTED INVESTMENTS						14,329			878
GOODWILL						166,437			186,576
INTANGIBLE ASSETS, net						47,124			68,514
OTHER LONG-TERM ASSETS, including reinsurance assets						14,997			38,285
	TOTAL ASSETS					1,286,430			1,350,945
						40,570
LIABILITIES
CURRENT LIABILITIES
	Accounts payable					21,453			17,101
	Other payables					45,595			42,257
	Current portion of long-term borrowings					8,863			14,789
	Income taxes payable					6,287			7,676
		Total current liabilities before settlement obligations				82,198			81,823
			Settlement obligations			661,916			725,987
				Total current liabilities		744,114			807,810
DEFERRED INCOME TAXES						10,564			15,522
LONG-TERM BORROWINGS						50,762			62,388
OTHER LONG-TERM LIABILITIES, including insurance policy liabilities						2,205			23,477
	TOTAL LIABILITIES					807,645			909,197
COMMITMENTS AND CONTINGENCIES

EQUITY
	COMMON STOCK
		Authorized: 200,000,000 with $0.001 par value;
		Issued and outstanding shares, net of treasury - 2015: 46,679,565; 2014: 47,819,299				64			63
	PREFERRED STOCK
		Authorized shares: 50,000,000 with $0.001 par value;
		Issued and outstanding shares, net of treasury: 2015: -; 2014: -				-			-
	ADDITIONAL PAID-IN-CAPITAL					213,896			202,401
	TREASURY SHARES, AT COST: 2015: 18,057,228; 2014: 15,883,212					(214,520	)		(200,681	)
	ACCUMULATED OTHER COMPREHENSIVE LOSS					(139,181	)		(82,741	)
	RETAINED EARNINGS					617,868			522,729
		TOTAL NET1 EQUITY				478,127			441,771
		NON-CONTROLLING INTEREST				658			(23	)
			TOTAL EQUITY			478,785			441,748

				TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,286,430		$	1,350,945

(A) - Derived from audited financial statements


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

			Unaudited						A
			Three months ended						Year ended
			June 30,						June 30,
			2015			2014			2015			2014
			(In thousands)						(In thousands)

Cash flows from operating activities
Net income			$	24,223		$	28,546		$	96,734		$	70,061
Adjustments to reconcile net income to net cash provided by operating activities:
	Depreciation and amortization			10,294			10,041			40,685			40,286
	Earnings from equity-accounted investments			(219	)		(96	)		(452	)		(298	)
	Fair value adjustment			518			(104	)		248			(55	)
	Interest payable			7			404			1,283			2,100
	Facility fee amortized			38			81			208			738
	Profit on disposal of property, plant and equipment			(1	)		(392	)		(296	)		(434	)
	Profit on deconsolidation of subsidiaries and business			-			55			-			55
	Stock compensation charge, net of forfeitures			513			898			3,195			3,718
	Fair value of BEE equity instruments granted			-			11,268			-			11,268
	(Increase) Decrease in accounts and finance loans receivable, and pre-funded grants receivable			(4,135	)		(33,926	)		1,399			(101,447	)
	(Increase) Decrease in inventory			(1,075	)		(199	)		(3,846	)		780
	Increase (Decrease) in accounts payable and other payables			6,804			23,566			(850	)		12,671
	(Decrease) Increase in taxes payable			(3,507	)		(3,908	)		606			5,523
	Decrease in deferred taxes			(1,631	)		(4,802	)		(3,656	)		(7,821	)
		Net cash provided by operating activities		31,829			31,432			135,258			37,145

Cash flows from investing activities
Capital expenditures				(11,614	)		(6,597	)		(36,436	)		(23,906	)
Proceeds from disposal of property, plant and equipment				80			866			857			2,990
Net cash outflow from sale of MediKredit				-			(669	)		-			(669	)
Proceeds from sale of business				-			186			1,895			186
(Acquisition of equity of)/ capital reduction/ repayment of loan by equity-accounted investment				(13,200	)		564			(13,200	)		539
Other investing activities, net				-			-			(29	)		570
Net change in settlement assets				(22,853	)		20,059			(12,570	)		(1,350	)
		Net cash (used in) provided by investing activities		(47,587	)		14,409			(59,483	)		(21,640	)

Cash flows from financing activities
Repayment of long-term borrowings				-			-			(14,128	)		(87,008	)
Long-term borrowings obtained				789			1,044			3,765			73,677
Acquisition of treasury stock				-			-			(9,151	)		-
Sale of equity to non-controlling interest				-			-			1,407			-
Dividends paid to non-controlling interest				-			-			(1,024	)		-
Proceeds from issue of common stock				265			110			2,045			198
Payment of facility fee				-			-			-			(872	)
Proceeds from bank overdraft				-			-			-			24,580
Repayment of bank overdraft				-			-			-			(23,335	)
Acquisition of interests in KSNET				-			-			-			(1,968	)
Net change in settlement obligations				22,853			(20,059	)		12,570			1,350
		Net cash provided by (used in) financing activities		23,907			(18,905	)		(4,516	)		(13,378	)

Effect of exchange rate changes on cash				(1,568	)		861			(12,348	)		2,880
Net increase in cash and cash equivalents				6,581			27,797			58,911			5,007
Cash and cash equivalents - beginning of year				111,002			30,875			58,672			53,665
Cash and cash equivalents at end of year			$	117,583		$	58,672		$	117,583		$	58,672

(A) - Derived from audited financial statements

Net 1 UEPS Technologies, Inc.

Attachment A

Operating segment revenue, operating income and operating margin:

Three months ended June 30, 2015 and 2014 and March 31, 2015


									Change - actual				Change - constant exchange rate⁽¹⁾
Key segmental data, in $ '000,			Q4 '15		Q4 '14		Q3 '15		Q4'15 vs Q4'14		Q4'15 vs Q3'15		Q4'15 vs Q4'14		Q4'15 vs Q3'15
Revenue:
South African transaction processing			$59,774		$88,265		$57,999		(32%	)	3%		(22%	)	6%
International transaction processing			42,573		42,201		38,311		1%		11%		17%		14%
Financial inclusion and applied technologies			73,042		64,093		66,830		14%		9%		32%		12%
	Subtotal: Operating segments		175,389		194,559		163,140		(10%	)	8%		4%		10%
	Intersegment eliminations		(11,103	)	(11,806	)	(12,019	)	(6%	)	(8%	)	9%		(5%	)
		Consolidated revenue	$164,286		$182,753		$151,121		(10%	)	9%		4%		12%

Operating income (loss):
South African transaction processing			$11,268		$38,675		$13,218		(71%	)	(15%	)	(66%	)	(13%	)
International transaction processing			7,134		6,647		6,579		7%		8%		24%		11%
Financial inclusion and applied technologies			19,385		18,126		17,906		7%		8%		24%		11%
	Subtotal: Operating segments		37,787		63,448		37,703		(40%	)	0%		(31%	)	3%
	Corporate/Eliminations		(5,174	)	(20,801	)	(5,737	)	(75%	)	(10%	)	(71%	)	(7%	)
		Consolidated operating income	$32,613		$42,647		$31,966		(24%	)	2%		(12%	)	5%

Operating income margin (%)
South African transaction processing			19%		44%		23%
International transaction processing			17%		16%		17%
Financial inclusion and applied technologies			27%		28%		27%
	Consolidated operating margin		20%		23%		21%

(1) - This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during the fourth quarter of fiscal 2015 also prevailed during the fourth quarter of fiscal 2014 and the third quarter of fiscal 2015.




Year ended June 30, 2015 and 2014

							Change - actual		Change - constant exchange rate⁽¹⁾
Key segmental data, in '000, except margins			F2015		F2014		F2015 vs F2015		F2015 vs F2015
Revenue:
South African transaction processing			236,452		261,577		(10%	)	(1%	)
International transaction processing			164,554		152,725		8%		18%
Financial inclusion and applied technologies			272,600		207,595		31%		44%
	Subtotal: Operating segments		673,606		621,897		8%		19%
	Intersegment eliminations		(47,627	)	(40,241	)	18%		30%
		Consolidated revenue	625,979		581,656		8%		18%

Operating income (loss):
South African transaction processing			51,008		61,401		(17%	)	(9%	)
International transaction processing			26,805		21,952		22%		34%
Financial inclusion and applied technologies			72,725		60,685		20%		32%
	Subtotal: Operating segments		150,538		144,038		5%		15%
	Corporate/Eliminations		(22,019	)	(42,240	)	(48%	)	(43%	)
		Consolidated operating income	128,519		101,798		26%		39%

Operating income margin (%)
South African transaction processing			22%		23%
International transaction processing			16%		14%
Financial inclusion and applied technologies			27%		29%
	Overall operating margin		21%		18%

(1) - This information shows what the change in these items would have been if the USD/ ZAR exchange rate that prevailed during fiscal 2015 also prevailed during fiscal 2014.

Net 1 UEPS Technologies, Inc.

Attachment B

Reconciliation of GAAP net income and earnings per share, basic, to fundamental net income and earnings per share, basic and to fundamental net income and earnings per share, basic excluding recovery from SASSA:


Three months ended June 30, 2015 and 2014

		Net income (USD'000)			EPS, basic (USD)		Net income (ZAR'000)			EPS, basic (ZAR)
		2015		2014	2015	2014	2015		2014	2015	2014

GAAP		23,914		28,584	0.51	0.59	288,035		297,897	6.18	6.12

Intangible asset amortization, net		2,751		2,960			33,131		30,842
Stock-based compensation charge		513		898			6,179		9,359
Facility fees for KSNET debt		38		79			458		823
US government investigations-related and US lawsuit expenses		17		53			205		552
BEE equity instruments charge		-		11,268			-		118,740
Net loss on deconsolidation of subsidiaries and business, net of tax		-		443			-		4,617
Transaction-related costs		-		77			-		802
	Fundamental	27,233		44,362	0.58	0.91	328,008		463,632	7.04	9.52
Recovery from SASSA, net of tax		-		19,177			-		199,861
	Fundamental excluding recovery from SASSA, net of tax	27,233		25,185	0.58	0.52	328,008		263,771	7.04	5.42



Year ended June 30, 2015 and 2014

		Net income (USD'000)			EPS, basic (USD)		Net income (ZAR'000)			EPS, basic (ZAR)
		2015		2014	2015	2014	2015		2014	2015	2014

GAAP		94,735		70,111	2.03	1.51	1,082,584		728,916	23.17	15.68

Intangible asset amortization, net		11,263		12,490			128,708		129,846
Stock-based compensation charge		3,195		3,718			36,511		38,655
Refund for KSNET litigation		(1,354	)	-			(15,473	)	-
Facility fees for KSNET debt		208		657			2,377		6,831
US government investigations-related and US lawsuit expenses		158		2,579			1,806		26,813
BEE equity instruments charge		-		11,268			-		118,740
Net loss on deconsolidation of subsidiaries and business, net of tax		-		443			-		4,606
Transaction-related costs		-		77			-		806
	Fundamental	108,205		101,343	2.32	2.18	1,236,513		1,055,213	26.46	22.70
Recovery from SASSA, net of tax		-		19,177			-		199,861
	Fundamental excluding recovery from SASSA, net of tax	108,205		82,166	2.32	1.77	1,236,513		855,352	26.46	18.40

Net 1 UEPS Technologies, Inc.

Attachment C

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


Three months ended June 30, 2015 and 2014

		2015		2014

Net income (USD'000)		23,914		28,584
Adjustments:
	Profit on sale of property, plant and equipment	(1	)	(392	)
	Loss on deconsolidation of subsidiaries and business	-		55
	Tax effects on above	-		(287	)

Net income used to calculate headline earnings (USD'000)		23,913		27,960

Weighted average number of shares used to calculate net income per share basic earnings and headline earnings per share basic earnings ('000)		46,620		48,695

Weighted average number of shares used to calculate net income per share diluted earnings and headline earnings per share diluted earnings ('000)		46,944		48,855

Headline earnings per share:
	Basic, in USD	0.51		0.57
	Diluted, in USD	0.51		0.57



Year ended June 30, 2015 and 2014
		2015		2014

Net income (USD'000)		94,735		70,111
Adjustments:
	Profit on sale of property, plant and equipment	(296	)	(434	)
	Loss on deconsolidation of subsidiaries and business	-		55
	Tax effects on above	83		(276	)

Net income used to calculate headline earnings (USD'000)		94,522		69,456

Weighted average number of shares used to calculate net income per share basic earnings and headline earnings per share basic earnings ('000)		46,733		46,484

Weighted average number of shares used to calculate net income per share diluted earnings and headline earnings per share diluted earnings ('000)		46,913		46,603

Headline earnings per share:
	Basic, in USD	2.02		1.49
	Diluted, in USD	2.01		1.49



Calculation of the denominator for headline diluted earnings per share

			Q4 '15	Q4 '14	F2015	F2014

Basic weighted-average common shares outstanding and unvested restricted shares expected to vest under GAAP			46,620	48,695	46,733	46,484
	Effect of dilutive securities under GAAP		324	160	180	119
		Denominator for headline diluted earnings per share	46,944	48,855	46,913	46,603

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

Contact Information:

Investor Relations Contact:
Dhruv Chopra
Head of Investor Relations
Phone: +1 917-767-6722
Email: dchopra@net1.com

Net 1 UEPS Technologies, Inc. Reports Fourth Quarter and Full Year 2015 Results