JSE Sens

NET 1 UEPS TECHNOLOGIES INC - Net1 files amended 2018 10-K with SEC, no change to equity, total assets and FEPS

07 December 2018 - 06:10 AM
NT1
Net1 files amended 2018 10-K with SEC, no change to equity, total assets and FEPS

Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
("Net1" or "the Company")

Net1 files amended 2018 10-K with SEC, no change to equity, total assets and FEPS

JOHANNESBURG, December 7, 2018 ? Net1 (Nasdaq: UEPS; JSE: NT1) today announced that it has filed an amended
Form 10-K with the United States Securities and Exchange Commission (?SEC?) which contains restated financial
statements for its year ended June 30, 2018. The Company has released its amended annual report for the effects disclosed in
the SENS filing made on November 9, 2018. The Company has updated its 2018 annual report to reflect this restatement and
has      posted    an     amended      2018    annual   report    to     its   website,    which      is    available     at
http://ir.net1.com/phoenix.zhtml?c=73876&p=irol-reportsAnnual.

Use of Non-GAAP Measures

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 (loss) 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 impairment loss, loss on the acquisition of DNI
and (profit) loss on sale of property, plant and equipment. Attachment B 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.

About Net1

Net1 is a leading provider of transaction processing services, financial inclusion products and services and secure payment
technology. Net1 operates market-leading payment processors in South Africa and the Republic of Korea. Net1 offers debit,
credit and prepaid processing and issuing services for all major payment networks. In South Africa, Net1 provides innovative
low-cost financial inclusion products, including banking, lending and insurance, and is a leading distributor of mobile
subscriber starter packs for Cell C, a South African mobile network operator. Net1 leverages its strategic equity investments
in Finbond and Bank Frick (both regulated banks), and Cell C to introduce products to new customers and geographies. Net1
has a primary listing on NASDAQ (NasdaqGS: UEPS) and a secondary listing on the Johannesburg Stock Exchange (JSE:
NT1). Visit www.net1.com for additional information about Net1.

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.

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

Media Relations Contact:
Bridget von Holdt
Business Director ? BCW
Phone: +27-82-610-0650
Email: bridget.vonholdt@bm-africa.com

Net 1 UEPS Technologies, Inc.

Attachment A

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

Year ended June 30, 2018, including by fiscal quarter

                                                                                                              2018       Q4        Q3          Q2         Q1
Net income (USD?000).........................................................................                 64,349     2,869     32,375      9,622      19,483
Adjustments: .........................................................................................
   Impairment loss...............................................................................             20,917     1,052     19,865          -           -
   Re-measurement loss resulting from acquisition of DNI ................                                      4,614     4,614          -          -           -
   Profit on sale of business ................................................................                 (463)         -          -      (463)           -
   Loss (Profit) on sale of property, plant and equipment ...................                                     40      (31)       (50)         16         105
   Tax effects on above .......................................................................                 (11)         8         14        (4)        (29)
Net income used to calculate headline earnings (USD?000) ................                                     89,446     8,512     52,204      9,171      19,559
Weighted average number of shares used to calculate net income per
share basic earnings and headline earnings per share basic earnings
(?000) ....................................................................................................   56,807    56,773     56,716     56,755      57,196
Weighted average number of shares used to calculate net income per
share diluted earnings and headline earnings per share diluted
earnings (?000) .....................................................................................         56,858    56,816     56,777     56,807      57,243
Headline earnings per share:.................................................................
   Basic, in USD .................................................................................              1.57      0.15       0.92       0.16        0.34
   Diluted, in USD ..............................................................................               1.57      0.15       0.92       0.16        0.34

Calculation of the denominator for headline diluted (loss) earnings per share

                                                                                                               2018       Q4          Q3            Q2         Q1

     Basic weighted-average common shares outstanding and unvested
     restricted shares expected to vest under GAAP .............................                               56,807     56,773     56,716      56,755     57,196
         Effect of dilutive securities under GAAP .................................                                51         43         61          52         47
           Denominator for headline diluted earnings per share ............                                    56,858     56,816     56,777      56,807     57,243

Weighted average number of shares used to calculate headline (loss) 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 (loss) earnings per share
diluted because we do not use the two-class method to calculate headline earnings per share diluted.

Johannesburg
December 7, 2018

Sponsor:
Rand Merchant Bank, a division of FirstRand Bank Limited

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