1

INTERIM RESULTS

NOVEMBER 2017

FOR THE SIX MONTHS ENDING 30 SEPTEMBER 2017

2

OUTLINE

1 Introduction to CAPPREC

2 Highlights for the period

3 Fintech sector opportunity

7 Annexure

5 Financial performance

4 About our investments

Prospects6

3

LISTING

ABOUT CAPITAL APPRECIATION

▪ Executive – Michael Pimstein,

Bradley Sacks, Alan Salomon

▪ Chairman – Michael (Motty) Sacks

▪ Reputable independent board

EXPERIENCED LEADERSHIP

▪ Elected to focus on Financial Technology sector

▪ Acquired “Payments” businesses – African

Resonance and Dashpay

▪ Acquired “Software Solutions” business Synthesis

▪ Investment in “Payments” business in Australia

(17.5%)

FOUR ACQUISITIONS CONCLUDED

▪ PIC

▪ African Rainbow Capital

▪ Capital Appreciation Empowerment Trust

▪ Capital Appreciation 67 Scheme

STRONG ANCHOR AND

BEE SHAREHOLDERS

▪ Focus on companies in the Services sector

that would provide a platform for growth

and international expansion capability

STATED INVESTMENT OBJECTIVE

▪ Sales restricted until later of (i) share

price exceeds R1,20 or (ii) 1 year post

transaction

FOUNDER LOCK-UP SAFEGUARD

▪ October 2015

▪ Raised R1 billion

▪ R390 million from Founders

4

CAPITAL APPRECIATION SNAPSHOT

PAYMENTS & PAYMENT

INFRASTRUCTURE

CAPITAL APPRECIATION

DASHPAYAFRICAN

RESONANCERESONANCE

AUSTRALIASYNTHESIS

SOFTWARE &

SERVICES

100% 100% 17.5% 100%

A solid foundation for sustainable

organic and acquisitive growth

▪ Directors and Management c. 33%

▪ Together with the Founders,

ownership increases to

c. 60%

▪ BEE ownership certified at 39%

(Voting Interest)

OWNERSHIP

CASH BALANCE

CONTRIBUTION (H1 18)*

▪ R463.1 million

16%

19%81%Turnover

84%EBITDA

* Excludes Corporate

5

H I G H L I G H T S

F O R T H E

P E R I O D

6

OPERATIONAL ACCOMPLISHMENTS

Completed and bedded down three

acquisitions and one investment

Transferred from a SPAC to the

“Software and Computer Services” sector

on the Main Board of the JSE

Good growth in the demand for payment,

regulatory and cloud offerings

Expanded customer base and solidified

pipeline through FY2019

Solid B-BBEE rating

Continued to innovate with new

technologies

7

FINANCIAL RESULTS

Cash flow from operations

R 60,2 m

EBITDA

R 85,6 m129%

HEPS

4,02 cents87%

R 463,1 million cash available

for reinvestment in growth, as

well as further acquisitions

Headline earnings

R 60,1 m124%

• Robust financial results

• Maiden dividend declared

• Strong cash flow from operations, with cash

conversion of 100% of PAT

• Good expense management

• Positioned for growth with a strong net cash

position

Profit before tax

R 83,7 m124%

Maiden Dividend

2 cents per share

8

DIVISIONAL PERFORMANCE

▪ Extremely pleasing

performance

▪ New client contracts and

increased market share

▪ Growing customer order

pipeline

▪ Specialised payment and

billing platform almost

ready for national roll out

▪ Employs artificial

intelligence, machine

learning and data

analytics

▪ Seamless integration into

POS and existing legacy

systems

▪ Posted solid growth

▪ Contract wins and

recognition from clients

▪ Amazon Web Services

“advanced partner” (the

first one accredited in

Africa)

▪ In development to

provide similar services

to AR

▪ Impressive progress in

marketing & capacity

planning

PAYMENT AND PAYMENT INFRASTRUCTURE SOFTWARE & SERVICES INTERNATIONAL

AUSTRALIA

9

F I N T E C H

S E C T O R

O P P O R T U N I T Y

10

DISRUPTIVE FORCES IMPACTING

FINANCIAL INSTITUTIONS GLOBALLY

COST COMMODITISATION1

2

3

5

4

6

Financial institutions will accelerate the

commoditisation of their cost bases, removing them

as points of competition and creating new grounds

for differentiation

PROFIT REDISTRIBUTION

Technology and new partnerships will enable

organisations to bypass traditional value chains,

thereby redistributing profit pools

“EXPERIENCE” OWNERSHIP

Power will transfer to the owner of the customer

interface; pure manufacturers must therefore

become hyper-scaled or hyper-focused

PLATFORMS RISING

Platforms that offer the ability to engage with

different financial institutions from a single channel

will become the dominant model for the delivery of

financial services

DATA MONETISATION

Data will become increasingly important for differentiation, but static data

sets will be enriched by flows of data from multiple sources combined and

used in real time

BIONIC WORKFORCE

As the ability for machines to replicate the behaviour of humans continues

to evolve, financial institutions will need to manage labour and capital as

a single set of capabilities

7 SYSTEMATICALLY IMPORTANT TECHS

Financial institutions increasingly resemble, and are dependent on, large

tech firms to acquire critical infrastructure and differentiating technologies

SOURCE: DERIVED FROM WORLD ECONOMIC FORUM REPORT

8 INSTANT GRATIFICATION

User experience of "online" environment is impacting all industries where

bespoke solutions are offered instantly

9 REGULATORY COMPLIANCE & REFORM

Regulators are increasing oversight and compliance obligations over

established players while also looking to encourage innovation and

reduce transaction friction

11

TECH-ENABLED NEW ENTRANTS

c. 9 million clients

Sought to be low-cost provider

Vitality success demonstrates the

power of user experience, product

bundling and data analytics

Reportedly 4 minutes to

on-board a client

Cost of delivery

Customer

experience

Focused strategy

Profitable, narrow

market segment

Bespoke offering

User experience

Pain points

User experience

Simplicity of offering

and value

proposition

(TYME)

12

CHARACTERISTICS OF FUTURE PAYMENTSInnovations will make payments more cashless and invisible in the future,

while enabling data driven engagement platforms for customers

CASHLESS //

More cash will be displaced by electronic

transactions as payments innovations make

it beneficial for customers to use payments

cards even in small denomination

transactions

BACK OF MIND //

As more transactions become virtual and

automated, more payments processes

become invisible to end customers, changing

their needs and behaviours

ENGAGEMENT //

As payments and mobility becomes more

integrated, the importance of payment

transactions as a potential customer

interaction point will increase for merchants

and financial institutions

DATA DRIVEN //

With greater adoption of electronic

payments, more data will be accumulated

from payment transactions, allowing

financial institutions, services providers and

merchants to gain greater understanding of

customers and businesses

ACCESS TO LOANS //

As more payments are processed through

electronic rails, financial institutions’ visibility

into individuals’ and businesses’ cash flow

and spending patterns will increase,

improving their ability to extend loans to

customers previously less understood

REDUCED COSTS //

Because innovative solutions build on the

existing infrastructure, which has very low

variable costs, the cost of making electronic

transactions will fall as electronic payments

gain more volume

SOURCE: DERIVED FROM WORLD ECONOMIC FORUM REPORT

13

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A R T I F I C I A L I N T E L L G E N C E

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P L A T F O R M S

B L O C K C H A I N

D I S T R I B U T E D L E D G E R

E C O S Y S T E M S

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A P I S

INNOVATION IN FINANCIAL TECHNOLOGIES

The big four

banks are

reported to have

spent more that

R30bn on

technology in 12

months through

June 2016

. . . all have an

impact on

Financial

Institutions . . .

. . . many already

part of Capital

Appreciation’s

existing

platforms and

future road

map . . .

SOURCE: MONEYWEB

14

Financial Inclusion is

the process of ensuring

access to appropriate

financial products and

services needed by

vulnerable groups at an

affordable cost in a fair

and transparent manner

▪ Transacting

▪ Saving

▪ Personal credit

▪ Remittance

▪ Insurance

FINANCIAL INCLUSIONThe IFC believes this represents a market opportunity exceeding US $2 trillion

SOURCE: MASTERCARD

15

MOVE TO ELECTRONIC PAYMENTS CONTINUESSOUTH AFRICA

SOURCE: PASA ANNUAL REPORT 2016

RE

TA

IL P

AY

ME

NT

SC

AR

D A

CT

IVIT

Y 18%year-on-year

19%year-on-year

16

POS DEVICE PENETRATIONPOS installed devices per 1 000 people

5 10 15 5 25 30 35

AUSTRALIA

TURKEY

SPAIN

FRANCE

UK

ITALY

U.S.

CANADA

BRAZIL

SOUTH AMERICA

GERMANY

MEXICO

CHINA

RUSSIA

INDIA

SOURCE: BANK OF INTERNATIONAL SETTLEMENTS

SOUTH AFRICA’S

PENETRATION

IS ONLY 4.5

17

CAPITAL APPRECIATION STRATEGY

Piggy back on established brands . . .

PARTNER INNOVATE EXECUTE

Big Four have brand value

exceeding R 70 billion1

B2B2C

Enable others to deliver value

Focus on infrastructure

State of the art proprietary technology

Entrepreneurial culture

Hardware agnostic

Integrate with legacy systems

Service Excellence

Alleviate pain points

User experience

Create eco-system

1 SOURCE: WEF – BRAND FINANCE (JULY 2017) BUSINESSTECH.CO.ZA

Engender trustAdd value

Grow market

• Developed economies

• Emerging economies / Financial Inclusion

A B O U T O U R

I N V E S T M E N T S

19

PAYMENTS & PAYMENT INFRASTRUCTURE DIVISION

Enables banks and corporates to extract additional value and differentiate

at the point of acquiring

BLUE CHIP

CLIENTS

Provide and operate

terminals for leading

brands and

International Banks

PROPRIETARY

PLATFORM

Unique, proprietary

technology platform

enabling rapid

development and

implementation of

customised corporate

solutions across a

diverse range of

sectors

END-TO-END

SOLUTIONS

Design, develop,

implement and

manage innovative,

end-to-end solutions

thereby enhancing and

strengthening the

relationships between

banks, corporates and

their customers

COMPREHENSIVE

OFFERINGS

Available on a turn-key

all inclusive basis or

a la carte

UNIVERSAL

ACQUIRING

Pioneer of “Universal

Acquiring” by

supporting one

uniform infrastructure

for financial and

non‐financial

transactions

AFRICAN RESONANCE & DASHPAY

20

CAPPREC DELIVERS AN END-TO-END SOLUTION

- Legacy systems are inflexible, costly and time consuming to adapt

- Innovation is key to unlocking value

SOURCE: BARCLAYS RESEARCH

RECRUITMENT

OF MERCHANTS

MERCHANT ON-

BOARDING

UNDERWRITE

MERCHANT RISK

PROVIDE

ACCEPTANCE

TRANSACTION

CAPTURE

FRAUD

TOOLS

AUTHORISATION

FX

CLEARING &

RECONCILIATION

SETTLEMENT

MERCHANT

SUPPORT

REPORTING

DISPUTE

MANAGEMENT

SALES RISK MANAGEMENT TECHNICAL PROCESSING SERVICES

PROVIDE ACCEPTANCE TRANSACTION

PROCESSING

POST-TRANSACTION

SERVICES

AFRICAN RESONANCE + DASHPAY

AFRICAN RESONANCE

DASHPAY

VALUE-ADDED SERVICES PRESENT

GROWTH OPPORTUNITY

ANATOMY OF MERCHANT ACQUIRING

21

PLATFORM FOR DELIVERING VALUE-ADDED SERVICES

“Universal Acquiring”

expands the range of

services and delivers

greater value to the

merchant

SELECTED

VALUE ADDED

SERVICE CARD

ACQUIRING

OFFERINGS

TRADITIONAL

SERVICES

NON-TRADITIONAL

SERVICES

22

PAYMENTS REVENUE MODEL

MAINTENANCE

& REPAIRS

▪ Generates monthly

recurring annuity

revenue depending on

level and scope of

services contracted

TRANSACTIONS

▪ Variable based on

transaction type and

value of transaction

LICENSING &

SOLUTIONS

▪ Generates monthly

recurring annuity

revenue dependent

on solution

▪ Flat fee

▪ Commission

POS ESTATE

MANAGEMENT

▪ Generates monthly

recurring annuity

revenue depending on

level and scope of

services contracted

POS DEVICES

▪ Sales of terminals

generates gross profit

▪ Rental of terminals

generates monthly

recurring annuity

revenue

▪ FX risk limited at time

of order

▪ Relationship with

major customers

subject to long-term

master supply

agreements

Predictable but lumpy Annuity tied to the

size of the estate

Annuity and

predictable

Unlimited subject to

developed economic

models

Unlimited

23

BLUE CHIP

CLIENTS

Absa, Investec,

Standard Bank, HSBC,

Nedbank CIB, Citibank,

RMB, Capitec, Afgri

and others

Leading provider of technology products and solutions within the

Financial Services industry

CUSTOMER

CENTRIC

Delivering the highest

business value with a

strong service ethic

THOUGHT

LEADERS

Acquiring and retaining

the best software

development skills

FOCUSED

Exclusive focus in the

financial services

sector

EXPERIENCED

Highly innovative team

with track record of

only successful

delivery

SOFTWARE & SERVICES DIVISIONSYNTHESIS

24

DIVISIONS

Cloud transformation to assist the

Enterprise in becoming cloud ready,

execute mass migrations and to harness

the benefits of public cloud platform

First AWS Advanced Consulting

partner in MEA

CLOUD

CONSULTING

Delivering exceptional end-user

customer experience web and

mobile touch points for financial

services institutions while

maintaining information security

and transactional integrity

DIGITAL

CHANNELS

Integration to enable regulatory

reporting solutions for SARS (tax)

and SARB (balance of

payments), payment processing

and exchange connectivity

PLATFORM

INTEGRATION

PRODUCTS

SYNTHESIS

25

F I N A N C I A L

P E R F O R M A N C E

26

H1 6 MONTHS AS A PERCENTAGE OF FY’17

FINANCIAL PERFORMANCE

CAGR(a)

Revenue 66%

EBITDA 102%

44.2

140.7

196.1

202.9

164.2

197.0

9.4

24.9

42.1

77.5

54.8 6

5.7

1.1

10.6 2

2.7

60.9

51.7 6

2.1

0

50

100

150

200

250

12 months 12 months 12 months 12 months 5 months - actual 6 monthequivalent

FY'14 FY'15 FY'16 FY'17 H1 FY'18 H1 FY'18*

Gross Revenue EBITDA Operating Profit

PAYMENTS & PAYMENT INFRASTRUCTURE DIVISION // YEAR-END 28 FEB

97

%

85

%

10

2%

0%

20%

40%

60%

80%

100%

120%

Gross Revenue EBITDA Operating Profit

TERMINALS AT PERIOD END

22 0

00 32 0

00

48 0

00

0

10 000

20 000

30 000

40 000

50 000

60 000

FY'16 FY'17 H1 FY'18

a Compound annual growth from FY’14 through FY’17 (actual).

* Represents the 6 month equivalent based on 5 months of actual performance.

27

H1 6 MONTHS AS A PERCENTAGE OF FY’17

FINANCIAL PERFORMANCE

CAGR(a)

Revenue 23%

EBITDA 33%

58%

43%

43%

0%

10%

20%

30%

40%

50%

60%

70%

GrossRevenue

EBITDA OperatingProfit

41.6 4

6.1

51.9

77.6

37.6

45.1

12.6 1

5.9 1

9.8

29.9

10.8 13.0

12.4 15.6 1

9.4

29.4

10.6 12.7

0

10

20

30

40

50

60

70

80

90

12 months 12 months 12 months 12 months 5 months - actual 6 monthequivalent

FY'14 FY'15 FY'16 FY'17 H1 FY'18 H1 FY'18*

Gross Revenue EBITDA Operating Profit

SOFTWARE & SERVICES DIVISION // YEAR-END 28 FEB

a Compound annual growth from FY’14 through FY’17 (actual).

* Represents the 6 month equivalent based on 5 months of actual performance.

H1 FY’18 results include

exceptional ramp-up costs

related to AWS Cloud

Migration projects, the

benefits of which will be

revealed in subsequent

periods

28

GROUP SUMMARISED STATEMENT

OF COMPREHENSIVE INCOME

R'm H1 18(unaudited)

H1 17(unaudited)

% increase FY 17(audited)

Revenue 223.4 39.7 - 80.2

EBITDA 85.6 37.4 129% 75.1

Profit before taxation 83.7 37.4 124% 60.3

Profit after tax 60.1 26.9 124% 39.2

Headline earnings per share

(cents)4.02 2.15 87% 3.14

Number of shares in issue

(millions)1 550.0 1 250.0 1 250.0

Weighted average number

of shares (millions)1 495.9 1 250.0 1 250.0

*Acquisitions were completed post 2017 year-end (5 May 2017)

Annuity income

comprises 52% of

turnover, and

growing

Under long-term

contracts

29

SUMMARISED STATEMENT

OF FINANCIAL POSITION

R'm 30 Sep 2017(unaudited)

30 Sep 2016(unaudited)

31 Mar 2017(audited)

Total assets 1 388.1 1 037.8 1 048.8

Non-current assets 825.7 0.2 0.2

Current assets 562.4 1 037.6 1 048.6

Equity 1 337.3 1 030.5 1 042.8

Liabilities 50.8 7.3 6.0

Non-current liabilities 8.4 0 0

Current liabilities 42.4 7.3 6.0

Total equity and liabilities 1 388.1 1 037.8 1 048.8

NAV per share 86 82 83

Cash and cash

equivalents

R463.1 million

30

CASH FLOW

R'm H1 18(unaudited)

H1 17(unaudited)

FY 17(audited)

Cash flow from operations and

investment income60.2 33.6 61.4

Purchase of investments* (569.9) - -

Purchase of an associate (29.7)

Repurchase of 25 million ordinary

shares (treasury shares)(18.8)

Cash and cash equivalents at

end of period463.1 1 037.0 1 047.8

* Does not include the issue of shares to the vendors to the value of R253,2 million.

31

P R O S P E C T S

32

PROSPECTS

▪ Continued and

accelerated growth in

POS device estate

▪ Existing customers

▪ New customers

▪ New applications

▪ Deployment of new

platforms across estates

▪ Introduction of new

products

PAYMENTS & PAYMENT

INFRASTRUCTURESOFTWARE & SERVICES INTERNATIONAL

▪ Licensing of software

applications for

regulatory compliance

▪ Cloud migration

opportunities continue to

accelerate

▪ International expansion

of service offerings

▪ Look forward to

Australian launch in H1

of calendar 2018

OR

GA

NIC

GR

OW

TH

AC

QU

ISIT

ION

S

▪ Evaluating attractive acquisition opportunities in Payments & Payment Infrastructure sector in South

Africa, Africa and other international markets

▪ Evaluating attractive acquisition opportunities in Software & Services sector in South Africa

Capital Appreciation is well capitalised, with the management

skills and technology to drive it’s growth strategy

33

T H A N K Y O U

34

A N N E X U R E

35

INTERNATIONAL TRENDS

▪ Increasing from new

entrants

▪ New payment types

▪ Disruptive

COMPETITION

▪ Empowering new entrants not

constrained by legacy platforms

▪ High IT investment required to

respond to customer needs

TECHNOLOGY

▪ Sector expertise and focus

driving costs down

▪ Consolidation and exit of

banks from payments

FOCUS

▪ Increasingly more

demanding of innovative

solutions that require non-

legacy technology platforms

▪ Lifestyle tailored solutions

CUSTOMERS

▪ Requires expenditure on divergent

priorities and cannot remain current

▪ Security directives are mandatory or

risk and liability is substantial

▪ Driving deployment of new devices

REGULATION

A LEADING INDICATOR FOR SOUTH AFRICAN BANKS – INDUSTRY IN FLUX

36

Increasing adoption and comfort with

card-based and digital currency:

▪ Mobile

▪ Govt. payment distribution (SASSA)

▪ Formalization (India)

▪ Proliferation of payment methods

(incl. wearables)

DIGITAL CURRENCY

▪ Growing middle-class in

emerging economies

across Africa

MIDDLE CLASS

ELECTRONIC PAYMENTS CONTINUE TO

GROW AND MUTATE IN RESPONSE TO

CONSUMER BEHAVIOUR

▪ Regulation and security driving

installation and acceptance of

devices

▪ Forcing accountability

▪ Encouraging digitization

REGULATION

▪ Consumer comfort with

data sharing leads to

integration with payments

▪ New products

▪ New credit tools

▪ Payment linked to and

with content

BIG DATA

Transactions mutating to be

indistinguishable from day-

to-day activity, further driving

to “Universal Acquiring”

37

Rapid development and

implementation of

customised financial and

non-financial solutions

and integration into third-

party applications

PRODUCT

Sophisticated real-time

end-to-end asset and

workflow management

system supporting their

dynamic operating model

and services

OPERATOR

Manages customer

identification, profiling and

monitoring which generates

consumer behaviour data

that enables big data

analytics and targeted

marketing for their clients

PROMOTER

AFRICAN RESONANCE – EXCLUSIVE RIGHTS

TO PROPRIETARY TECHNOLOGY

Handles the acquiring

application parameters

including BIN management,

settlement times and

acquiring application modes

including retail, fuel and

restaurant

Resolink technology provides a single, integrated

platform to deploy and manage acquirers’ terminal fleet

PAYMENT

38

▪ Bank acquiring

▪ Close payment

systems

▪ Agency banking

▪ Microfinance

FINANCIAL

▪ Retail management

▪ Store-in-a-store

solutions

▪ Distribution / SCM

▪ Gift and prepaid

cards

▪ POS integration

RETAIL

▪ Consumer profiling

▪ Consumer database

management

▪ Voucher campaigns

▪ Event management

MARKETING

▪ Social grants

▪ Health benefit

distribution

▪ Food coupons

▪ Medical claims

PUBLIC

▪ Customised payment

solutions

▪ Large scale loyalty

programs

▪ Social responsibility

▪ Short- term

insurance

▪ Reconciliation and

reporting

CORPORATE

SOLUTIONS RANGE ACROSS

INDUSTRY AND FUNCTIONAL AREA

39

ACTIVATIONS & LOGISTICS

▪ Stand alone: counter-top and portable

▪ Integrated PED

▪ Mobile

DEVICES

▪ Asset management

▪ Key injection

▪ Hardware and software assembly

▪ Dispatch and terminal tracking

▪ Remote activation and tracking

▪ Perform component replacement

▪ Perform device re-activation

▪ Quality control and testing

WORKSHOP & REPAIRS

▪ Communications with

processing centre

NETWORK SERVICES

▪ Software development and testing

▪ R&D

▪ Version and update management

▪ Remote version updates of the terminal

SOFTWARE

▪ Product support

▪ Problem identification

▪ Problem resolution (connectivity, software,

parameterisation)

CALL CENTRE

▪ Targeted outbound telemarketing

▪ Coordinated with in-field sales force

COLLABORATIVE SALES

▪ Real-time monitoring of estate and

preventative maintenance

ASSET MANAGEMENT

SERVICES OFFEREDCustomers can select packages or selected services a la carte

40

Blue chip client base

CLIENTS

Blue chip supplier base

SUPPLIERS

History of innovation

INNOVATION

Sector expertise

Experienced team

EXPERTISE /

MANAGEMENT

Unique technologies

TECHNOLOGY

Speed of deployment and ability

to respond to market needs

SPEED

Single interface with integrated device

and CRM records

INTERFACE

Universal acquiring capability

(bundled products)

UNIVERSAL

AFRICAN RESONANCE / DASHPAY STRENGTHS

Compliant with best practice

SECURITY

Visa and Mastercard accredited

ACCREDITATION

41

PAYMENTS & PAYMENT INFRASTRUCTUREILLUSTRATIVE PRO-FORMA HISTORICAL PERFORMANCE YEAR-END 28 FEB

2014 2015 2016 2017H1 FY’185 MONTHS

ACTUAL

H1 FY’186 MONTHS

EQUIVALENT

CAGR

'14 - ‘17

Revenue 44.2 140.7 196.1 202.9 164.2 197.0 66.0%

EBITDA 9.4 24.9 42.1 77.5 54.8 65.7 102.0%

Margin

EBITDA 21.3% 17.7% 21.5% 38.2% 33.4%

Growth

EBITDA 165.0% 69.0% 84.0%

INFORMATION REPRESENTS AN AGGREGRATION OF HISTORICAL PERFORMANCE OF AFRICAN RESONANCE AND DASHPAY FOR EACH OF THEIR RESPECTIVE

FISCAL YEARS. HOWEVER, THE FISCAL YEARS WERE NOT COTERMINOUS AND THE AGGREGATION IS SHOWN FOR ILLUSTRATIVE PURPOSES ONLY

42

SOFTWARE & SERVICESHISTORICAL PERFORMANCE YEAR-END 28 FEB

2014 2015 2016 2017H1 FY’185 MONTHS

ACTUAL

H1 FY’186 MONTHS

EQUIVALENT

CAGR

'14 - ‘17

Revenue 41.6 46.1 51.9 77.6 37.6 45.1 23%

EBITDA 12.6 15.9 19.8 29.9 10.8 13.0 33%

Margin

EBITDA 30.3% 34.5% 38.2% 38.5% 28.7%

Growth

EBITDA 26.2% 24.5% 51.0%

43

COMPARABLE INTERNATIONAL COMPANIESIllustrative of breadth and depth of international “Payments” marketplace

Market capitalisation (in US $ millions) // CY18E EV/EBITDA as of 10/11/2017

NETWORKS EMERGING PAYMENTSMERCHANT ACQUIRORSPOS / CASH

DISBURSEMENT

$257,105 // 18.1x

$158,227 // 18.8x

$16,223 // 11.4x $6,418 // 13.7x

$16,083 // 10.5x $5,119 // 15.4x

$15,972 // 15.2x $982 // 9.1x

$12,395 // 15.4x $537 // 3.8x

$13,416 // 12.5x

$10,535 // 16.1x

$237 // 11.2x

$91,942 // 21.5x $1,054 // 6.6x

$16,981 // NM $735 // NM

$11,619 // 20.2x $623 // 13.2x

$566 // NA

$5,738 // 9.2x

$817 // 9.6x

$2,052 // 8.7x

$850 // 6.0x

$246 // 12.9x

44

IMPORTANT NOTICE, DISCLAIMER AND BASIS OF

PRESENTATION

For the purposes of this notice, this presentation (the

“Presentation”) shall mean and include the pages and slides that

follow, its contents including the information forming part thereof or

referred to in the Presentation, the oral presentation of the pages

and slides by Capital Appreciation Limited ("CAPPREC") its

officers, directors, employees and/or advisers, any question-and-

answer session that follows that oral presentation, hard copies of

this document and any materials and/or information (in whatever

form) distributed at, or in connection with, that oral presentation. By

attending the meeting at which the Presentation is made, or by

reading the Presentation slides, you will be deemed to have (i)

agreed to all of the following restrictions and made the following

undertakings; and (ii) acknowledged that you understand the legal

and regulatory sanctions attached to the misuse, disclosure or

improper circulation of the Presentation.

This Presentation is provided to you solely for information purposes

and does not constitute, and may not be relied on in any manner

as, legal, tax or investment advice and/or an investment

recommendation.

This Presentation is not directed to, or intended for distribution to or

use by, any person or entity that is a citizen or resident of, or

located in, any locality, state, country or other jurisdiction where

such distribution or use would be contrary to law or regulation or

which would require any action (including registration or licensing)

within such jurisdiction for such purpose.

This Presentation is not, and should not be construed so as to

constitute, an offer of securities for sale or acquisition in any

jurisdiction, including in the United States, Canada, Australia or

Japan.

This Presentation does not constitute or form part of, and should

not be construed as, an advertisement, invitation, solicitation and/or

offer to sell, issue, purchase or subscribe for, any shares and/or

securities in any jurisdiction, or an inducement to enter into

investment activity. This Presentation does not constitute an offer to

the public for the sale of or subscription for, or an advertisement or

the solicitation of an offer to buy and/or subscribe for, securities as

defined in the Companies Act, 71 of 2008 ("the Act") or otherwise

and will not be distributed to any person in South Africa in any

manner which could be construed as an offer to the public in terms

of the Act. Furthermore, this Presentation does not constitute an

advertisement or a prospectus registered and/or issued under the

Act.

The information contained herein has been prepared using

information available to CAPPREC at the time of preparation of this

Presentation. External or other factors may have impacted on the

business of CAPPREC and the content of this Presentation, since

its preparation. In addition all relevant information about CAPPREC

may not be included in this Presentation.

The information in this Presentation has not been independently

verified. No representation or warranty, expressed or implied, is

made as to the accuracy, completeness or reliability of the

information contained herein and no reliance should be placed on

such information.

Neither CAPPREC, its officers, directors, employees nor any of its

advisers, connected persons or any other person accepts any

liability for any loss howsoever arising, directly or indirectly, from

this Presentation or its contents.

This Presentation contains forward-looking statements, including in

relation to the prospects of CAPPREC, which include all statements

other than statements of historical facts, including, without

limitation, any statements preceded by, followed by or including the

words “targets”, “believes”, “expects”, “aims”, “intends”, “may”,

“anticipates”, “would”, “could” or similar expressions or the negative

thereof. Forward-looking statements by their nature involve known

and unknown risks, uncertainties, assumptions and other important

factors because they relate to events and depend on

circumstances that might occur in the future whether or not outside

the control of CAPPREC.

Such factors may cause actual results, performance or

achievements to be materially different from future results,

performance, developments or achievements expressed or implied

by such forward-looking statements. Such forward-looking

statements are based on numerous assumptions regarding present

and future business strategies, prospects and the relevant

operating environment in the future.

Accordingly, no assurance is given that any such forward-looking

statements will prove to have been correct. These forward-looking

statements speak only as at the date of this Presentation.

CAPPREC expressly disclaims any obligation or undertaking to

disseminate any updates or revisions to any forward-looking

statements contained herein to reflect any change in its

expectations with regard thereto or any change in events,

conditions or circumstances on which any of such statements are

based.