Altron Limited ($AEL)

Good morning, and welcome to Altron's Capital Markets Day. My name is [indiscernible] Madonsela. Just over 2 weeks ago, I had the privilege of introducing Altron's management team to you at the FY '26 results presentation. Today, I am excited to be doing the same thing again here at Altron's first Capital Markets Day since setting out its platform-led growth strategy in 2023. That journey has taken Altron from a foundational reset through a period of accelerated growth and now on to its next phase of growth. Speaking of growth, just 2 years back, I was sitting in a high school classroom in Seto, pondering about what the future might hold for me. And this week, I get to write my second dune examinations as a computer science student at DCT. This growth is one of the most important factors in my life and is what makes me proud and grateful to be part of the Altron family. Today, we will be keeping things informal. Please feel free to step out for refreshments as needed. And in terms of housekeeping, the restrooms are to your left as you exit. We will begin with a strategic update from our CEO then to the introductions of the Managing Directors of Altron's platform businesses. After that, you will be taken through to lunch and then to the hands-on demonstrations of the MDs and their teams. We will close the day back in this room with an interactive Q&A session. As a reminder, today's capital markets update is being webcast and recorded. You are free to ask any questions by posting in the chat box. I will now hand over to Altron's Group CEO, Werner.

Thanks, [indiscernible], and good luck again with your exams, and thanks for taking the time out to come speak to us. It's incredible. Our succession plan is safe. Welcome to all of you also for taking the time out of your very busy schedules to spend quite a lot of time with us today. I mean we're extremely excited to take you through what we think is our role in the South African digital economy and why we think we're ideally positioned to continue to drive sustainable growth in this verging economy. I want to spend about 25 minutes. Firstly, I wanted to show you a little bit of what we call Altron's heart. I mean there's a specific reason why we squeeze you in here today rather than take you to a luxurious conference center or a hotel. We wanted you to come to where we work. I was telling some people earlier on, I mean, my I made the saying my office until I realize I don't have an office. It's just a desk. My desk is upstairs as you walk up the stairs there from the coffee shop. So we really wanted to -- you also to get a bit of a -- culture is a very important thing for us. So we also wanted you to just get a little bit of a sense of what we're about. So I'm going to take a couple of slides just to talk to you a little bit about sort of what we stand for as a business. And then I really want to talk to you about what we see happening in South Africa's digital economy and how we think we're exceptionally well positioned to be able to drive growth on top of that. But first of all, we're going to start off with really what is most important to us as a group. [Presentation]

I always tell my team when that video stops giving you goose bumps, you probably shouldn't be working here. You probably shouldn't be working -- so when I joined Altron about 4 years ago, one of the things that really struck me is that we were what I believe to be the best kept secret in the market. And you probably don't even know yourself how many times a day you engage with and interact with Altron, your children, your customers, your office. I mean, starting from you leave home in the morning, there's about a 50% chance of the electronic subcomponents in the gate controller of your garage was supplied by Altron Arrow. Hopefully, you're one of the million people who's having their safety for yourself, your car and your family secured by Netstar. I dropped my kids off this morning at school, they're writing exams. I'm sure many of yours might be. I don't know if you're aware of this. There's a really good chance of the exam paper that they're writing was printed by Altron. I mean last year, Altron Document Solutions printed almost 500 million South African exam papers. Your smart ID card that you carry with you was printed, produced and your ID is securely encrypted by Altron identity. If you go to the coffee shop, like I did this morning, there's a really good chance that the merchants acquiring and the payment is done. I always look at the -- I'm sure Johan will take you through it. My team is laughing at me because I send them a photo of it again this morning. If you look for the Altron logo, when you get to work, Andrew will tell you a little bit more about it. I mean most of the security that's done on the Internet websites that you look at is done by us. We provide the certificates for those and also enterprise-grade security for most of the mobile operators and financial services companies in South Africa. If you pop out to do a little bit of retail, probably about a 50% to 60% chance that the point-of-sale systems and those retailers are supported by Altron. Should you or your family have to go see a doctor, over 40% chance that the SMS that you get from your doctor with that appointment, I mean the payment, the scheduling thereof is done by our private practice management system and over 50% chance that your payment is facilitated and the payment of -- the dispensing of your medicine afterwards is facilitated by our switch. So it's just incredible that Altron really is everywhere. And we are even more today embedded, and I'll take you through that a little bit later in this digital economy of South Africa. And what's very important for us, the reason why I show that video, and we show that video, we've got quarterly business reviews, I think, probably in this very room next Thursday, where we really go through the strategy, what we're trying to do and we kind of unpack how that's going, what's working, what's not working, what do we have to fix, what do we have to double down on. And we always start that as a reminder that we're purpose-driven, we're customer obsessed. We don't always get it right. We don't always get it right. But when we don't, we'll move heaven and earth to fix it for our customers, and we're growth focused. Where there's change, where there's problems, we see opportunity. And that's the kind of leadership we want, and that's the kind of people that we want. And probably, as you saw, I mean, Tobe is one example of that. I mean, one of the greatest privileges we've got, whilst we are growing shareholder returns, and that's obviously exceptionally important for us, and it's a job that we take very seriously is the fact that we are able to channel some of that into the 2 big causes that we've taken on. One is our partnership with Josey -- my Josey, which is really focused on the regeneration of Johannesburg. I mean I spoke about that last year on the 1st of April on our 60th anniversary. I'm delighted to see that, that is really getting a lot of attention now at a national level and the fact that the fortunes of Joburg are inextricably linked overall to the fortunes of South Africa. And then the other one is education. We just recently opened our second digital -- there was the Netstar Digital Learning Center, which is really helping teach underprivileged kids on math, science and AI in Hillbro. And about -- I think it was about 6 months ago when we announced our partnership with the Maji Institute that's building the MIT for Africa right here in Marshalltown, I was at the opening of that digital center. And as you can see, a number of graduates, a number of programs. Dombelli is one of our Ascend bursary. I think we've got about 24 kids, most of whom are our employees' kids on our bursary scheme, solving real real-world problems of which education is probably one of the more important ones in South Africa. Just for the record, I wasn't a math buff school. I didn't enjoy math. It wasn't fun. I knew I had to take it because I wanted to become engineer 1 day. But a lot of people struggle with maths and science and technical ability or technical type subjects and the whole math system is built around me giving you something similar and testing it out a you're struggling with, let's say, a rate band I'm going to give you a green pin. And you can explain the green pin back to me. And if you get it, then you can continue. So that's a system that I designed while I was studying and it was very, very effective, but it was very labor-intensive. And the 1 evening I said my wife well, if I can actually build this into software, we can scale it, and so many more people can actually use this concept-orientated teaching. We call it both where it's in math use. So if you struggle with something, going to give you something similar. Today can just do a lot more than that. So that's where it started back in the day. If I can summarize MathU, it's help when you need it. So if you take out your phone, you can click on something and you can get help instantly. You don't have to wait for a tutor or your teacher, and that's -- if we can -- our vision is to obviously scale that to everyone in SA can have opportunity for this. I think the biggest success story that we've seen is we've had a student that came on 8 weeks before finals. This marks were about 75%, graduated, I think secondly in the country with the 99 for maths and science. And then what the system did was highlighted his gaps and he started filling them 1 by 1 by one, lock in the mobile like a test match. And then what we're doing, if you finish with that, we're actually now including a bursary AI that starts looking for bursaries for you. And that's got a list of the SA-based verses and helps you coaching getting into these bursaries. [Presentation]

You can see Andy and I share his passion for cricket, knocking it out the park and knocking them over one by one. So why is this the right moment? And I actually think the MathU case study is a perfect segue into why we believe this is a very important time and moment for South Africa and for Altron because digitization and the uncoupling of the formal economy from the informal economy provides you with the kind of opportunities that MathU can capitalize on. A small start-up business doesn't have access to significant capital, coding in Brooklyn in Pretoria, using the AI factory, creating solutions at scale that they've now done an equity raise for and turning that into a business which is solving real, real-world problems in South Africa because of the pressure that our public infrastructure and our public service is under. And this is something that we've seen throughout the developing economies globally, right? We see that digital infrastructure ultimately decouples growth from physical infrastructure. saw this in India in 2009 when they built Aha, which is their biometric-based digital identity system, took them a couple of years to build from there, that then became payments. And that has increased bank penetration from 53% to 80%, and they reckon it's added about $67 billion of economic savings and economic growth. Brazil did the same thing in 2016 with PIX put about 170 million people on their digital identities platform. Again, that became a payment platform and 71 million people went from unbanked to being banked and cash, which is a big factor, went down from 77% to 40% of that economy in about 4 years. And we see those kind of trends that are happening in developing economies all over the world in South Africa today. So what is it that we are seeing? Firstly, our public infrastructure and our public services are severely stretched, not uncommon at all. for developing economies, right? Our road and rail infrastructure cannot cope and it is making life very difficult for small, medium and light logistics operators. Our police force are undercapacitated to be able to fight the unfortunate surge of car theft, hijacking and more worryingly, recently, the disturbing trend of kidnapping. Our public health care system is under pressure. Our private health care system, as you've seen recently by some of the results coming out from some of the big players are under equal pressure. Now I can't give you the exact number, but there are millions of people every day in South Africa that do not have access to instant credit. Why is it important that they have access to instant credit? These are daily, weekly, biweekly wage earners. Think of the goggle who's coming out at 6:30 in the evening, -- she doesn't need credit to go gamble or buy something fancy. She needs credit to be able to provide food for a family, probably the only meal of the day that they're going to get today. She is not buying that at a big formal retailer because she cannot afford to do the scale and quantity of bulk purchases in those big railers. She goes to the local spaza shop and buys 100 milliliter milligrams of maize meal as an example. And that spaza shop needs cost-effective solutions to be able to provide that service to her. Tomorrow, she has to go back to work. She needs an identity to be able to work. Nothing can happen in a country. No payments, no inclusion in the economy can happen without an identity. So this is what we're seeing in South Africa. And what we see is that our mobile-first population and some of the tailwinds that we're seeing in regulation, the payment ecosystem modernization project, the MimZanzie project, which has been launched by the President, which is really aimed at improving digital services to citizens. You've probably heard a lot. I mean the President even spoke as recently as I think Sunday evening about the change to the national identity, moving off the green card. So this accelerates digital infrastructure and the opportunities to be able to fix these problems in an informal economy because of our mobile-first penetration, because of the fact that we do have world-class connectivity infrastructure and data centers and a very digital savvy population. And this gives us significant opportunities in mobility, payments and identity, which is addressed by our multiple operating in payments, in health care, in digital identity, platforms that we've spent 30 years building. Transformative growth for us is not something that started 3 years ago or 3 months ago. It's something that we've been working at for over 30 years as some of the MDs will take you through. And remember that identity unlocks participation. Participation generates transactions. Transactions generates -- creates data and data creates value, and we believe data is one of the biggest competitive moats for us across and in our individual businesses. And ultimately, this is -- these multiple platforms are powered by IT services and our Altron AI factory. And that is why we have started this journey and why we've pivoted to a multi-platform company that we believe is uniquely positioned to drive sustainable growth in this digital economy. The reason why we've been able to deliver revenue growth and EBITDA growth in an economy that's growing by 1% or 2% is because this digitization and the problems that we solve for our customers and consumers through our multi-platforms is uncoupled from structural economic growth. It's underpinned by 91% annuity revenue. That means even in a bad year, on the 1st of March, we booked 90% of our revenue for the year already. And the unit economics allows you to scale this over time. And that is why we have had very deliberate capital employment in this platform and this data ecosystem. And this is done by a trusted experienced leadership team that have built up a track record over the last 4 years of doing what we said we would do. And of course, you're going to be meeting a lot of them. I think some of them that didn't have -- we didn't have place for in this room will also be joining us for lunch, and you'll have a great opportunity to also interact with the people in our business around some of these solutions that we are delivering. I mean there's just by way of introduction, some of the team. I'm not going to go through it one by one. You'll meet some of them. But MDs with a lot of experience and a proven track record in the business that they're in, supported by a corporate team, Marissa, in marketing, Colin is our COO; Lauren, who's over there in Legal and then Philippe who joined us recently in Investor Relations. So we really, really believe that this multi-platform ecosystem of ours is geared for transformative growth because we're in high-growth markets and because we solve solutions for our customers in this digital economy that's uncoupled from structural growth. And it really taps into both the formal economy. And I think one of the great things, which you'll see during the course of the day, for example, Johan brings enterprise-grade solutions to the informal economy, to those Kasi shops, to the micro lenders. And our right to win is that we've been at this for 30 years. I mean, rightly so, I get asked the question a lot, but why can't other people do this? Folks, what seems very simple to you as a consumer, which is consuming a service, making a payment on an app, getting your medicine dispensed to you at a pharmacy. And I think the MDs will take you through some heaven forbid pushing a panic button or being proactively tracked and having a chopper dispatched to either save your life, rescue you or your family from a kidnapping or recover your vehicle behind that simple -- what appears to be a simple act is an incredibly deeply embedded ecosystem of technology, a number of role players and a distribution channel. Also, we think our multi-platform capability makes us unique. I've been asked the question so many times by people in this room and rightly so, why so many companies? What are you trying to do? Why don't you just focus on this one thing? Who do we compare you to? We want to compare you to these guys. We are proud today to say you can't compare us to anybody. We don't mean that arrogantly at all. We are just proud of that fact because we think this multi-platform ecosystem has no single vertical peer. The data moat that it generates and that transaction spine of what we do, that's a real slice of the digital economy. And this has enabled us to have an ungeared balance sheet, a strong cash profile, and we can make investments in growth in our organic platforms, acquisitorial where it makes sense and our capital is there to compound, not to rescue. So I hope that's given you a really, really good sense of what we see as the opportunity, what our role is in this. And the MDs will now really take you through some of the detail in their businesses and why we think that we are uniquely positioned as a multi-platform business that provides digital solutions in this burgeoning digital economy that where we believe growth is uncoupled from structural economic GDP growth. And of course, we have a very strong unit economics and a great annuity base and a very strong balance sheet that supports all of that. Thank you very much for listening. By the way, you got to go, you got to go. I think Tom told you where the bathrooms are. This is quite a long session, but I'm now going to hand you over to Warren to take you through the Netstar business. Thanks for listening.

So good morning, everybody. It's a pleasure to be here today. For those of you who don't know me, my name is Warren Mande. I've been with the Altron Group since 23 years now. So I've been across a few of the opcos, worked in our international operations and have worked alongside Grant Fraser and the leadership team at Netstar in the role as the COO for the last 9 months. Most recently, before that, I joined the ADS team and helped with that turnaround in that business. So today is the first time I get the opportunity to address you in my new role as the incoming Managing Director of Netstar, and it is an absolute privilege. We've got 15 minutes. So I'm going to whiz through things to some extent. We've got a demo session and a Q&A. So I look forward to engaging with you during the course of the afternoon and during lunch. I think for me, the 3 things that I really want to try and communicate today is the enterprise momentum Netstar has built over the 3 years in terms of the track record that Grant and the team have built. and how that really sets us up for executing on the strategic drivers and the pillars for us as we look forward towards the next 3 years. And then finally, sort of capping it off as to what is our right to win? What makes Netstar different? What makes Netstar unique and why we feel we're incredibly strongly positioned for that. Again, in the demo day, you'll see a little bit more of that in action, but I'm going to take us through it at a high level today. You will have all seen the results. I won't belabor too much of the financials and the details on the screen, and I do believe you have a pack. So again, building on what Werner talked about, we know that there are big things expected of Netstar. It's a business that has got high expectations, both from within the organization and from the external communities. And again, when big things are expected, there's that old saying that culture eats strategy for breakfast. And I think Werner actually told me at lunch and dinner is also on the menu. And organizational culture is key critical for us. And what sits at the heart of culture really is purpose. And for me, as a subscriber of Netstar and as the leader of this business, tapping into that purpose is absolutely vital. And I've had some personal experiences with some family members where Netstar has been the deciding factor between actually life or death. So when I take on this role and we look at the purpose that is fundamental for us at Netstar, protecting people, protecting lives, protecting livelihoods is key critical for us, and it gives our clients the opportunity to focus on what matters most. There's a chair there. I guess that's my chair, but there seems to be a chair there. We always talk about leaving a chair in the room for the customer. It's vital to Toyota. We spend a lot of time with Toyota. You leave that customer chair there, and it always helps really give you an insight as to what people are thinking. And hopefully, some of you in the room are customers of ours today. So moving ahead, it all really starts with our smart mobility platform. That's really the place where our proprietary hardware, our software really comes together for us to be able to generate and deliver services to 3 very distinct groups of cohorts of customers. We have our consumer value proposition. That consumer value proposition has demonstrated over the last 3 years, double-digit CAGR growth. We have a big investment in terms of our MyNetstar app, which again, we'll talk to you about a little bit later in terms of the -- in the demos, but it really is an important part of our business in terms of acquiring the scale that we have to deliver services like stolen vehicle recovery, emergency services, which are vital to the economy. Moving down layer into our commercial business. That really is a part of the business that Netstar has been really leaning into over the last 3 years. Grant and the team put a lot of effort and work into generating substantial growth. That's why you see the higher CAGRs. It's a very attractive market for us. It's a high-growth market. It's a market with higher ARPUs, and it's something that we are really leaning into as we look forward. Again, we still deliver the stolen vehicle recovery and emergency services, but it also delivers real intelligence to organizations that you have fleets of vehicles and are looking to either optimize their fleets, drive savings, drive return on investments. We are -- and we'll talk a little bit later about how we're moving beyond vehicles into asset tracking. And that will also span our consumer business, but we'll lean in a little bit more heavily this afternoon in the demos as to the practical applications in the commercial space. And then finally, we have our OEM relationship, our Tier 1 relationship with Toyota as an OEM. And this is a relationship that started 6 years ago. It started with Netstar and Toyota in a partnership to enable Toyota drivers, they call them guests, customers, to be able to access free Wi-Fi in their vehicles. And Netstar provides the units that provide the free WiFi, but also has in-built telematics into those units. Now that's important because that was the starting point for Toyota's journey and Netstar's journey into this world of OEM telematics. And OEM telematics is actually the major disruptor that is going to be impacting this telematics marketplace. And as Netstar, that deep relationship, that deep integration with the world's largest motor manufacturer that spans both South Africa and Malaysia is one of the key reasons why we believe we are well positioned to accelerate into this OEM growth connected vehicle marketplace. Economic engine, absolutely vital for the people in this room. This is really where we talk about this enterprise momentum that Netstar currently enjoys. At a subscriber annuity EBITDA level, all double-digit CAGRs. And also pleasingly, 92% of our revenue comes from our annuity base. And from a metric perspective, our South African business meeting that Rule of 60 criteria. Again, strong enterprise momentum. You will have seen our results. I'm not going to spend too much time on this, but happy to take any questions you may have in the breaks or a little bit later on today. Now as we start looking forward, we start to really start thinking about and executing on -- or executing on, thinking about the strategy and the execution. So we've broken up our strategy into 4 key elements, 4 key dimensions. And we looked at it very strategically. We wanted to pick areas that we know there is headroom for growth, both in the market and competitive displacement. And the first area for us is really market penetration, some of that and soft metrics makes sense, right? We've got these products. We don't have to create anything new. All we need to do is execute better. What does that mean? Investments in brand, investments in marketing, sharper value propositions, creating products and services within that ecosystem that will differentiate us in the market. Again, you see we talk a lot about fleet telematics, again, high growth and accelerated adoption, we're really, really leaning into that space. Why? High ARPUs, high ARPUs and then the opportunity to drive some of those products for growth. And when we flick across the products for growth, that is the ability for us to upsell and cross-sell into our existing base and lead with these. So what does that mean for us? That means, again, the opportunity to increase our ARPUs through things like insurance telematics, which is the basis really for UBI or user-based insurance, something that we do very, very well with a couple of the insurers at the moment. We also are offering video telematics solutions. Those are the front-facing and cab-facing cameras. Again, I'll show you applications for that, but a really strong opportunity for us in our existing base. And then we talk about the big pool of opportunity that sits in asset tracking, people and vehicles. Again, for us, this really does give us the opportunity to scale our business. These products, service and offerings are already being executed by Netstar. This is not something that we have to develop. This is not something that we need to bring to market. They are live today, again, leaning into product technology execution that really underpins the investment that we're making in our business in terms of our technology stack internally, but also bringing in new technology and technologists in our business. The OEM connected platform, I touched on earlier. I won't spend too much time in this session on it, but it is really the major shift. The shift being that telematics units are now coming inbuilt into vehicles. So the telematics unit and the module that allows them to connect up to their own platform sits within the vehicle. So the ability for telematics providers to put their own devices into those vehicles is now changing. It's shifting. The goal is shifting. So this is the disruption that we talk about, and this is why we believe Netstar is incredibly well positioned to take advantage in this disruptive market. We often say we talk about winners and losers. If you're just doing the same old thing that you did yesterday and you're not already deeply ingrained with an OEM, it's going to be a lot harder for you as an organization to win in this new market, and we have that benefit. And then finally, acquisitions. And this question comes up a lot. We'll be patient, we'll be selective, and we'll do so from a position of differentiation, but it is absolutely on our strategic growth road map. The market opportunity is great. So I think just a couple of call-outs because it's a very data-heavy slide. The first one is our strategy for growth and our growth areas are all underpinned by high CAGR growth markets. So we're not spending and expending time, effort and energy in markets that don't have the opportunity to give us headroom to grow and in addition to that, differentiate ourselves that we can grow at higher than market CAGR rates. The piece around OEM that I just wanted to make clear, and if you have a look at that first slide, the 2 sort of bubbles there. The OEM telematics marketplace is growing at a high CAGR, 17%, but it is not substitution. It's not cannibalizing the existing aftermarket stolen vehicle tracking marketplace. So again, 2 markets. And often people think that the one is cannibalizing the other. although that the stolen vehicle market is growing slightly lower, it is still a high CAGR, double-digit growth market. And then just underpinning everything, I won't call out all the numbers. It really does support our view that there is a lot of headroom in our South African market for us to grow our business without the need to do anything too off piece. I think maybe just I'm going to spend 1 or 2 minutes on this slide. This is really where things start to get a bit interesting. So we talk about the products, and we talk about the services. But actually, it's the data that underpins those that is actually the value here. Because if you think about what we're doing, we're taking data and we're using that data to create product solution services that help our clients. So particularly in that large enterprise and medium-sized enterprise space where we want to really drive out the fleet services. Remember, I keep saying this word high ARPUs. That's really where we want to be. We leverage Altron's AI factory. We leverage that factory to be able to process all of those billions of data points that we see every single month in our organization to create products, solutions and services that help our clients solve their bespoke problems. If everybody's problem was the same, it would be easy, but each business is unique in the way they operate and each organization wants to do something slightly different. So having the ability to customize those solutions is not so easy, and it's quite expensive if you do it through hyperscalers. Our ability to have a cost to serve at a much lower price point by leveraging our internal AI factory gives us the opportunity to be more competitive when we're in situations where we're trying to retain a customer or win a customer from someone else. And in the last week, we've just taken 2 large customers from direct competitors on that basis. It's all about execution. And this then this data flywheel effect starts to happen. So as we see more kilometers come into our platform, so our insights get better. As our insights get better, we're able to do better predictions. With better predictions, we're able to drive better outcomes and better outcomes enable us to be more competitive. That more competitiveness or that competitive advantage allows us to win more customers, virtuous circle. And again, just sort of looking at the scale at the top there, no, those are not the top 5 in the world, but just to give you a context of the amount of data points that we're ingesting relative to some big names that you should know, Netstar is an absolute standout player in this space. I think I just got the 5-minute rule. I'm not too far away from finishing, I promise. Finally, our right to win. So again, when you start to put it all together, when you start to look at where our market is moving into the future, when you start to think about some of the disruption that's coming, when you start to think about what is happening, we start to consider the impact of AI and this data explosion, that compounding data mode with the right far right-hand side, that Altron Advantage really puts us in an incredibly strong position to do more with that data at a lower cost. That for us gives us a bookend of real competitive advantage. As you come to the 2 middle ones, we have the enterprise momentum on our side. The team have done amazing work. So we're not coming off a low base and restarting. It's a phenomenal amount of momentum in the business as it stands. And the scale of our distribution, we're not just known for one thing. We're known across the categories. Yes, we want to do a lot more in the enterprise and fleet space, absolutely. But our Tier 1 status with Toyota, our deep integration in the motor channel, the insurance channel and a number of them are exclusive to Netstar really put us in a strong position. And closing it out, Phil, because I know I'm getting there. I think just for me, I'm going to talk a little bit about what I'm committing to you in the room. When I say something, I'm going to be transparent. If I make a commitment, I'm going to follow through with it. And what you know with me is I'll always deliver on the promises that we make as Netstar. For you in the room, it's crystal clear what you need. Your expectations are revenue growth, clearly operating leverage, capital discipline and shareholder returns. So I understand deeply what this community needs from me and from our leadership team. But ultimately, and if you are Netstar customers, I just want to leave you with this thought. In that moment of need, God forbid, you are ever in that crisis. If you call us, I will make sure that this business is the best at what counts, protecting and saving lives every day. Thank you.

I just want to check out where the minute keeper is good to go. Good morning. Good morning, good morning. Welcome to Al Trend today. The turnout was marvelous. Thank you, Phil, for getting all the people heard it into the room. So thank you, team, for coming out this morning. We'll later on see our team give you a sense of what we are doing as fintech. So I want you to focus first on the left-hand picture on that slide. And I want you to put yourself into the mind frame of what goes through your mind when you see that picture on the left. What is the first thoughts that enter into your thinking? What the hell is that? Isn't that it? The second thought perhaps could be this is extremely complex. This is an international and a domestic doughnut or a pie chart of all the players internationally and domestic. So Altron Fintech only do not work in the bottom, I would say, the 4 -- 2 blocks there. We don't interact with chipsets at all. The rest of those players, we somehow have got a relationship as a third party directly and indirectly. So we integrate into all of those environments. So this is an extremely complex environment that we trade in. So picture the following that we overlay this now with compliance, certification and regulation. That is not only domestically, it's also internationally. because we have to comply with the payment card industry's international certification, and we have to do that certification every year. We also have to do EMV, Euro Master and Visa certification, and we have to do that every year. And all of our systems have to comply if we want to be participating in this ecosystem. So put all of that in a smoothie liquidizer, you mint all of that together and you get a smoother that is one molecule away from nuclear waste. That's what we have. So put yourselves in the shoe now of a merchant or a consumer. All they want to do is they want to buy something and they want to get some goods for it or they want to pay for a service and get some goods for it. This is what we solve for our customers and our consumers. Simplifying complexity. That's our why. Our why is simplifying complexity. So to give you a sense, one of those 220 billion transactions -- one of those 22 billion transactions, the round trip from you inserting or dipping your card or tapping your card on a machine is anywhere between 15 and 20 seconds. That is domestic and international transactions. And it sometimes touches about 70% to 60% of the blocks on that left-hand side. That's what happens in the digital domain. One of those 50 billion debit orders authorizations that we do get also takes between 15 and 20 seconds. That touches about 30% of the blocks on the left-hand side. Then we have to disburse the funds, the loans and what has to happen there? When you apply for a loan, you want to make the money immediately, not 2 days from now or 3 days from now. To Werner's earlier point, I'm in dire strait. I have to get access to money. We have to transfer that money instantaneously. So we're using the Paya P to do the disbursements of money. And that money is instantaneously available in our consumers' accounts. So this is the ecosystem that we have -- that we integrate into. Supporting that ecosystem is a team, a dev team. Our development team is about 30 to 40 people depending on if we subcontract or contract in some services. And they make sure that platform run with a mindset of always-on thing. There must be resilience. It must be architected for high-performance days, and that's the only grow. And all of that is our intellectual property. Then we've got a compliance team. We've got to odd between 8 and 12 different compliance activities that we have to perform all year round. So our compliance team is in compliance mode for 12 months of the year because fintech cannot exist if we do not adhere to the compliance domestically and internationally. And then most importantly, we need to have somebody to increase the ZAR 220 billion. And that's where our sales team is coming. So we've got 3 separate sales teams. We've got our enterprise sales teams, our SME sales team and recently added our Kasi Squad sales team. Just to give you some metrics around the sales teams. Our enterprise team, every member of that team has to see, visit 5 new customers every week. That's the target that we set for our enterprise team. Our SME market, -- every one of those team members, they have to promote our products, 10 new customers every week. That's their target.kasiquad, they have to see 50 new customers every week. So you can multiply that over the 52 weeks. And what we -- what is our challenge there is converting those leads into customers to grow our ZAR 270 billion that we've got on our products. We've been at this for 30 years. Werner mentioned that Altron has been around for 65 years. Half of that is what fintech is about. So it's -- so the people understand the domain. We're embedded in the domain, and we're not going to go anywhere. So for us, it's -- the major challenge here is to get rid of the cash, the large cash economy. Depending on which body you look at for research, GG Elcock has got research. They say the informal economy is about between ZAR 500 million and about ZAR 1 trillion, ZAR 500 billion and ZAR 1 trillion. That's a huge chunk of money. So that's why the Kasi sales team and Squad was created. So we have decided with the Kasi squad that we are going to employ people from Sueta, from Ekorileni, from Kaalicha, and we are next frontier now is Port Elizabeth. So those people have to live, eat, sleep, breathe in those communities, and they have to sell our products and services in those communities because there's a level of trust here that we have to engender because there's a huge distrust in this community about banks because they're saying in that community goes, you're eating my money. And we have to get rid of that. So we have to make a dent in this instant gratification of a cash transaction. Because a cash transaction, I give you $20, you give me something that $20. The parties leave and it's all shown online between the 2 parties. A digital transaction sometimes you got a day, a 2-day inertia in it before the parties -- the merchant gets their money. And that's what we have to get rid of. So I'm going to take you through some customer journeys here of what we do as a business. Consumer rocks up at one of our microfinance customers. They apply for credit. They have to produce their ID utility bill, they pay slip, and we put all of that into our platform. We do a credit bureau inquiry, do a harness inquiry. We min all of that together, and we then drop out with an affordability of what the consumer can afford. If they agree on the number and agree on the payment period, we then have to disburse the cash. We disburse the cash on our physical product, which is new card. And the card is an association branded card, Mastercard, and they walk out the front door there, money is in the card, they can go to an ATM and go into a retail PayPoint and transact at that pay point. The digital version of that is our new cash platform, where we back use of the Paya row. The money is disbursed into the loan account instantaneously. So that's how we get rid of the risk and the security for our customers in the branches. That contract is handed to our payment and collections engine. store that contract in our payments and collection engine and an agreed date, we're going to collect the money between 12:00 and 2:00 in the morning from the consumers' account. We aggregate those into all our customers' accounts, and we settle between 6 and 10 -- 6 and 8 in the morning. You might ask why do we settle so fast? Cash is the stock of the microfinance. If they do not have cash in their account, they cannot run their businesses. So it's imperative for us that, that window, we like walks every morning. Just to give you a sense of what we collect on a monthly basis, about ZAR 4 billion. Some mornings, we settle between ZAR 200 million and ZAR 500 million in that window that we settle in the morning. So those 2 businesses really goes like hand in glove, and they contribute about 80% of our revenue. We move off into the integrated transaction solutions. This is really a business that sell or rent terminals, payment terminals. We've got an integrated switch there, always on switch connected to all 6 banks. The commercial model there is you can rent it, you can buy it from us, the switch, you can buy a transaction, you can buy a bucket or eat as much as you want for a certain set fee in the month. We collapse the service for some customers as well. So we don't really have a go-to-market prescript on how we want to engage with our market. So for us, that's flexibility. The main need for that business is to underpin our payments and collection engine because we use the rail of our switch to get to all the banks without having to have another point-to-point integration between our payments and collection engine and the bank. And then we see there's a move and a shift to retailers to be bank agnostic. So we're capitalizing on that move to wean ourselves off the banking routes. We also see now with the new range of terminals that the retailers are now seeing this device as a business tool and not anymore just as a credit and a debit card acceptance device. So we're deploying more apps on this device. There's more business tools on this device. The most frequent one, people who fly Sapphire, they use that for the manifest and they use that to see how much food and beverages they have sold in -- during the flight and then they connect that back into the base and it updates the ERP system. The device in Sapphire incidentally is a device that we imported into the market. Our last line of business is our card personalization and issues business. That is -- so when your new ID card with a chip on it, we have been producing that for the last 15 years. So we're supporting and maintaining and looking after those engines, and we're enhancing those engines. We have now upgraded those -- the software and those engines to start producing the drivers' licenses. So perhaps from the 1st of July, you'll be able to have drivers licenses from -- that we will produce out of that facility. It's run by the government printing works, and we've been supporting them for the past 15 years. In the commercial side, the retail side, 2 banks in the country has got instant issuance of cards in their branches. So once you've opened your account and they give you that card with your name on it, we've personalized the chip on the card, you walk out the front door and you can use the card in ATM or in the retail space. That's really what the card personalization engine. Those 2 businesses combined to about 20% of revenue. And all the business together generates about 88% annuity revenue for fintech. Now compliance and regulation is huge. All those yellow blocks and all those lines of business. We have to have compliance as a cornerstone of this business. Just to give you a sense of the compliance bodies that we have to work through, it is Paya, KYC, AML, PIP and PEP sanction screening, FIC, FICA, I'm getting you, NCR. So just to name a few. I mean, those are all the bodies that we have to satisfy on domestically on a yearly basis. And then we go international and up across the pond and then people come and audit us for PCI and EMV. So regulation in all those sectors are -- it's an imperative. Fintech can't do -- run their business without that. Then we've been working close with the S on the payment ecosystem modernization program. this has been a 2-year journey for us. We're finally at a point where they've published the exemption notice for activity-based framework. Final comments in, I think, end of this month, then public participation 3 months from now and hopefully, before Christmas, we'll have the exemption notice tabled in Parliament and signed off by parliament. This is huge for our team. It's huge. This framework will allow us, as fintechs in the country, access to the national payment system without having to run those services through a sponsor bank. It's going to give us direct access, direct access. You can imagine how huge that is for us. Just to give you a sense, 80% of our cost of sales is bank fees, bank fees in the country. So if we can nibble at that, you know what we can do for our customers and for ourselves. So this is huge. So our team is slaving away now and making sure that we are ready to put on our application, and they will have that done and dusted before the ink is dry on the signing of in parliament. Then just to get you back to what we are going to do. We are going to continue servicing our enterprise and SME market space because we believe there's an awful long runway still for us because friction, process, complexity, we have to simplify that, and that's what we're doing in those market segments. The Kai market segment is our informal segment that we're approaching. We're going to have a hell of a lot of learnings from that. Just to give you a sense of the learnings, B earlier touched on the Spa store. They enter into a credit agreement for selling them the 100 grams of flower. On Friday, they have to repay that 100 grams of flowers fee. So now we're introducing a debit order there. It's actually a repayment plan. And we collect ZAR 200, ZAR 300, 400 at. Similar with Uber repair shops on the side book, they repair those things on credit. The credit has to be collected. We're introducing our products there. [indiscernible] they all do services on credit, and we're introducing our products there to collect the outstanding fees there. Backroom rentals, it's a cash transaction today. They want to regularly collect those things over a 3-, 4-, 5-month period, depending how long the rental is, and we're going to collect that information. So our runway in the informal sector is a learning runway, but we believe we can certainly eat into the ZAR 500 billion as fintech. Thank you. Thank you.

Good morning, everybody. By way of introduction, I'm Leslie Moodley, I've been with Altron just over 8 years and roughly half the time I've taken care of the HealthTech business. Before I take you through our business, I want to give you a sense of just the environment in which we operate because I think once you get an understanding of this environment, you will see why we are so well positioned. The big statement is private health care supports about 15% of the population in South Africa. That's roughly using about half the budget for health in the country. And that's roughly about ZAR 330 billion, right? Every single interaction of that has to go on a digital platform. To give you a sense of this diagram, these are the stakeholders that we mainly deal with and that really run private health care in the country. And Altron HealthTech is fully entrenched in these sectors. The funders, there's about 71 of them now, covering about 9.2 million insured lives. We call them members. They are going through some really strong structural pressures, right? Most of the stories out in the press around private health sector talk about the stress and the financial burden on the funders. I'll talk about how we're solving that. The funders obviously are running what we call a claim negative system. For every ZAR 100 that they collect, about ZAR 96 goes out and paying claims and about ZAR 6 goes to the administrative overhead, right? So you are ZAR 3 negative. Think about the solutions that we can put in to support them. The managed care organizations in our ecosystem are critical. They make sure that you and I are well taken care of in case of chronic conditions, making sure that you follow a very specific health pathway linked to medications, authorizations and this DSP networks designated service providers provide the service at the right price and at the right time. All of it I'll talk about just now. The providers who you and I know quite well are the doctors, are the specialists, are the hospitals, they really are the backbone of the health care system, globally known for high health care knowledge and really breakthrough technology and innovation when it comes to health care. Roughly 40% of that runs on our systems. There's about 50,000 registered practitioners in the country. That's including all of these players plus what we call the auxiliaries, your physios, your OTs, et cetera, and 40% of that runs through our system. And the standard pharmacies, all of them are our customers because we have to switch from the pharmacy into the funders to make sure you can receive your medication and they get paid or you got to do a co-payment or full payment. All of that is us. And then the structural sort of pressure that goes in -- the most important person, you and I, the patient has really been forgotten. And that's the sad thing. A patient can go to a GP, gets referred to a specialist. The specialist asks for some blood tests that goes through a pathology lab. The pathology lab then comes back to the specialist and you go and collect maybe your medication at the pharmacy. Nobody can tell you an integrated view of what's happening with the patient, well, except HealthTech. That's the power of the platform I'm going to talk about. Some bragging stats, ZAR 259 billion dispensed by the schemes in FY '24, '25, approximately half of it goes through us. That's 107 million transactions without skipping a beat. Can you imagine sitting at a DisChem at month end and the system goes down? That would be chaos. That system works like clockwork and has deep technology and huge investment to make sure that we protect this digital backbone that Werner talks about. Of the 50,000, about 20,000 practice numbers run through my software. At any given stage, that's about 5,000, 5,500 concurrent users hitting our systems to make sure that a patient can be seen, the clinical notes can be taken, you can be admitted into a hospital or referred to a specialist or even manage all the payments that go through your member benefits. All of that happens seamlessly through our systems. And of course, when we built this data moat around our business, we saw that we had 15.6 million. Now that, for me, is quite remarkable because there's only 9.2 million insured lives in the country. Therefore, we're beginning to see a lot of the cash patients that are going through the private sector as well. That's 25% of the population. I spoke about the structural stresses, right, in the ecosystem. The funders are running a claim negative system. And of course, they are looking for solutions to lower costs, to understand what's happening to their patients, to making sure that the patients are compliant, to making sure there's no fraud in the claim solutions, that requires a data business. Our data business provides that. Our managed care organizations make sure that you need proper clinical data. And that, for example, with oncology, we'll make sure that you are following the right regimen for drugs. In that regimen, we must make sure that you complete your therapy so that you're not adding burden into the funders by being admitted to hospital. Our systems and our data platforms do that. The providers cannot see patients without our systems. It makes it possible to see a patient, to look at their clinical record and make sure that they are being looked at not only for now, but in the entire journey of their health. And the pharmacies, if you're following, are completely reinventing themselves, follow the Dis-Chem retail story, and that is based on our systems. The growth drivers are quite clear, right? If you look at our business, I want to be deliberate in saying we're not a software company. We are a proper business platform company. We look at providers or provision of the goods and services that comes into our system. These guys produce value that our pharmacies, our funders, our managed care organizations consume. And the more they produce, the more patients they see, then the more it gets consumed to add value into the system. Our strategy has 3 main parts. Our core business, which is really our practice management and our claim switching, together with our corporate wellness, which is underpinned by our occupational health has really been our mainstay. Over the last few years, we've introduced our oncology solution. This is a proper ecosystem play. We've taken all the different parts of oncology, and we've written technologies to bring it all together so we can orchestrate. Now if somebody launches a solution in oncology, it is really an island. We can make sure it comes together. So it's virtually impossible to then be outside our ecosystem. And that's the logic of what we're doing on our platform. And all of this soaks into our data business, where we're diversifying our revenues and solving really complex problems, both in health care as well as into adjacent industries like financial services, retail, large pharmaceutical and the like. The key growth drivers for me is clear. It's volume, do more with what you have. So we will always protect that base of our practice and our switch, and we are growing at a really good rate. Our churns -- since we've invested, our churn has come right down, and we in the direct market, almost 2:1. That means we are adding 2 practices for every one that closes either through retirement, loss to competition, immigration, et cetera. So we are really in a good position on that side. And of course, we want to get a higher yield from what we have. And so we will make sure that we can continually add value to our core. New revenue and expanded revenue is all what we're about. We've really launched our data asset and that data asset is already starting to plug into adjacent industries as well as into health care to really start building some of these great solutions. And then we want to expand our oncology solution. We launched our base oncology solution about 18 months ago. Of the 70 large oncology practices, 38 are running on ours. And we want to expand that by adding data solutions to the large pharmaceuticals for obviously, for the drug compliance. We want to add a patient app that brings the patient into the oncology ecosystem. And then we want to add visibility to the schemes so that they can manage this huge cost. Of course, we want to be a good player into the government with NHI coming along. We are the first company that really used our systems to access the government databases and have been certified for that. And then if you look at it, what is our right to win? We have no real one answer. It is a compounding impact of successive moats over 30 years. I spoke about our data moat. That data moat really allows us to solve complex problems, but also diversify the risk of our revenue streams. The scale is phenomenal, 40% market share in practice management, 65% market share in claim switching. We run 100% of the managed care organizations for oncology. That gives us the ability to make sure that nobody can replicate without huge difficulty what we're doing, real-time capturing all this data. And I spoke about solving these complex problems for data. For example, data is a wonderful proxy of credit score, right, in the health space. So if you're now looking into financial services, data in health can help with digital underwriting for life insurance, and we are building all these models to be able to diversify the business. And of course, we are built to scale. I want to double down quickly on the data asset. I've spoken a lot about it. It's already in production. It's in the early stages. So we have current revenue going through that 15.6 million unique patient records is growing. It's a good proxy for what's going on in the country. And therefore, we are really optimistic to grow this. And to bring it to life, I want to take you through a simple example. Our platform systems with our transactional systems, our data and focus on patient means that we can look after the patient throughout their journey, not only when they were sick. That is our old business. Our new business is we can add value throughout this. When a patient is sick, of course, our systems kick in, but that's only less than 5% of your life. The other 95-plus percent means we can add considerable value to you in terms of preventative health. Everybody is wearing wearables, -- everybody wants to look at their health, whether you're exercising, gym, cycling, all of this comes into preventative health, a huge market. And our data is critical in that. Of course, employee health, any organization wants to have a sense of what's going on with their employee base. So with our data, you can get a sense of what -- what's driving absenteeism, productivity and then do very specialized interventions. And of course, if you get sick, that's when we really come into our own, and that's the 30-plus years of systems and solutions that we have. But of course, a patient may want to eat healthy. So we partnered with the leading retailer in the country to look at healthy basket of goods because we know what chronic conditions go through our systems. If you need to go into financial services, we can now widen the spectrum to use health data as credit scoring. And the logic goes on as you get into the wider ecosystem. I look forward to then talking to you later and discussing a lot more about the business, but thank you very much for listening. I'm going to hand you over to Andrew to talk about security.

So almost time for lunch and security is the topic, but I promise you this is the interesting security today. Werner made a bet with me that I couldn't do this session and not use an acronym. So I'm going to try really hard. But there's one acronym I need to start with. Today's topic is about trust across the digital transformation conversations that we've been having, without trust, there's not going to be any commercials behind it, right? Trust is easy in the brick-and-mortar world because we can see each other, we can validate who we are by using our minds and our eyes. But in the digital world, there's no trust, right? If you think back to the Internet and its burgeoning days, it was anonymous. That's much of its value proposition. But today, it can't be anonymous. For any of the things that we've been speaking about, we need to have an ability to create trust. And for the 20 years in my career, I've been working at Altron Security for 25 years across many of the different portfolios in the business, 5 years leading it. And for much of that time, I wasn't able to explain to my parents what it is that we did and how we created trust. I'm going to take a stab at doing it now, but I'm really lucky in that it's much easier these days because we're all interacting with this stuff every day. And if I give you a few use cases, it will become immediately apparent. That one acronym that I'm going to have to use Van, unfortunately, is called PKI public key infrastructure. And that's something that we've been leading the African market in for the last 26 years. Again, going back to the example of Leslie, in the online world, if we want to be able to know who Leslie is, there's a simple way of doing it, and we can use encryption. Leslie can choose a key, he can share that key with me. He can encrypt some data and send it to me, and it must have come from Leslie because he gave me that key and he encrypted the data. So I know I'm talking to Leslie. The problem, though, is we could get someone in the middle of that communication that could steal the key. And how do I know that, that was Leslie's key. So we introduced a third party, a trust service provider, Altron Security, someone that has public key infrastructure. We run and host and are accredited by the South African government and other governments internationally to be able to offer these services. And Leslie's key is broken into 2 pieces, one that he creates that only he ever keeps and the other half of the key that he created, he gives it to the trust authority. And if I want to communicate to Leslie, I come to Altron Security, I request his public key and whatever Leslie encrypts with his private key must come from Leslie, because only I can decrypt it with the public key. So this sharing of cryptographic information is the very core of what we do. And we do a lot of it. Our trust infrastructure services underpins all of our platform capabilities. If we look at the Smart ID card that are mentioned, we built for the South African government, the trust infrastructure that issues the private and public keys into that card, and then we keep with government those public keys, so that whenever you use that card, for example, when you go and fetch it, at a bank branch, you're going to stick that card into a machine, validate who you are, and the keys are going to be validated to ensure that, that is, in fact, your card. We built that infrastructure for the South African government. We've recently last year been appointed by the Zambian government to build their national public key infrastructure that they will operate. We're building it for them and transitioning it to them. And that will underpin all the initiatives in their country around digital signing and in the future, the implementation of digital identity. And then in the private sector, telecommunications companies in South Africa leverage our managed PKI environment. They don't want to run this themselves. We operate it for them. And this provides the authentication in their radio area network and all the encryption of the communications across the telecommunications space. So the plumbing of what we do is a 26-year history, highly regulated and a whole bunch of firsts that we've been able to achieve in the country that sets us apart. There are only 2 players in this market here in South Africa. There's a third, the post office, not currently delivering those services. There's really only 2 players in this market today. But the exciting stuff that I'm here to talk about is really what we're now building on that trust infrastructure. When the ECT Act mandated the ability for individuals to be able to get a digital signature that could be used under law, what we in South Africa call an advanced electronic signature, globally a qualified signature. There were trust service providers that could register to be allowed to issue those signatures. We're one of them. one of the 2 in the country that are able to issue advanced electronic signatures. We also have a document signing platform, and we created all of this before COVID, what a tailwind that was because overnight, what was allowed under law suddenly became necessary because no one could sign a document with legal standing physically during that time. What's been amazing for us is that, that growth that we saw during COVID has continued. And we really now see signing, using cryptography to create a document that's non-reputable and stamped with your identity as being public infrastructure. It's been baked into everything we're doing. And I'll talk a little bit later about some of the initiatives at the deeds office. But as part of the electronic deed registration system, there's a move now to have a digital title deed signed just as one example. And you hear about it everywhere today, but digital identity is the next wave that we're investing in and building capabilities. We're already providing the critical services that underpin digital identity for nation states, for private sector, for many ecosystems that have presented today from health care to IoT, to payments. We're working with the South African Reserve Bank to see how they use trust infrastructure in the new payment system. We're really excited about the future that we have around digital identity. And you use this already in many, many ways throughout your day. If you're going to a website and it's one of the banks in South Africa, it's a good chance that the pad lock that you see that proves the identity of that website that you're visiting that those certificates were provided by us. If you're using your smart ID card, the identity that's in that card, the digital identity that you're already carrying around, we use the horrible word physical digital identity as opposed to one day a mobile digital identity. That's using our trust infrastructure. If you're signing a document with legal standing, probably using one of our signatures. We have our own signing platform, but we also provide to the signing providers, the signing platforms in South Africa, their advanced electronic signatures. We're working with the deeds office in a proof of concept at the moment where conveyances will be able to take that pack of information and upload it to the deed system, the new EDRS platform and for that then to return a digitally signed title deed. Banking transactions in the new payment ecosystem is going to require a way of identifying people if there isn't a bank account behind it. So digital identity and trust infrastructure is going to be critical to that future. And as I mentioned, we're seeing this become part of digital public infrastructure across government, many, many use cases from metric certificates to health information requires the trust services and digital identity and document signing. We had a wide range of firsts across Africa. We were the first people in Africa to achieve the order accreditation that you need to be able to supply this infrastructure. The standard is called the Web Trust audit, and we undertake this every year. We've done it 10 consecutive years. We're the only company in Africa that has passed a Web Trust audit 10 times in a row. It's really rigorous and ensures that the way that we're identifying people, machines and companies is infallible because it's a critical element of knowing that the person we gave these keys to is, in fact, who they say they are. And of course, all the infrastructure that we use to verify that. We were the first people approved by Adobe to join their trust list, which means that the Adobe ecosystem trusts the documents that we sign. If you open up in a PDF browser, 1 of the digitally signed documents, you can validate it. We were the first to be accepted into the micro of trust list, all makes of operating systems, trust our trust infrastructure. And we're a member of 2 very important consortiums, a Pike consortium and the cloud signing consortium. These are the industry bodies globally that are driving the finding and the trust services industry. I'm really excited to show some of this to you in action later today. We'll introduce a fictional malady who has a digital identity in a smart ID card, but would love the ability to get away from a lot of the KYC physicality that we still require when opening accounts in regulated environments. So we're going to do just that. We're going to show you how you could use a 1-day government issue digital identity and be able to open an account, do KYC and then be able to receive credentials from that organization that you can then use to log in and to be able to transact. We'll also throw signing into the mix and show you how that would work in the future. So our right to win is a vertically integrated platform, built on strong regulatory moats at its lowest level. We have platform economics built into the model from the top to the bottom. We're selling per transaction per verification per user issuance. It's something that I haven't mentioned that we'll touch on in the room later is that this whole industry is about to have -- I used the word in the dry runs cataclysm, maybe cataclysm is too struggle word. But there is a EPOC moment arriving in the next 5 years, in that quantum computing breaks the cryptography that is in place today. The algorithms that we're using can be broken by quantum computers. If they get a bit stronger. And that's why we say perhaps 5 years' time from now, is a realistic time frame for these computers to be strong enough. So we have a gargantuan effort to undertake over the next decade to ensure that the system as a whole is quantum resilient. This is not something that we're waiting to do. These are investments that are already being made. And again, a differentiator for us is our readiness to be able to handle post-quantum attacks. So what are the next 3 years look like for us, the major 5 actions that we're investing in. We see digital signing becoming public infrastructure. It's going to be required across public interactions with government. We see national digital identity being a critical enabler for the African continent. It's not just us that see that the World Economic Forum has an initiative around implementing digital identity as a way to just skip over physical identity that many, many African countries don't have yet today. In fact, the World Bank is putting funding behind many countries, current initiatives to implement trust infrastructure and digital identity. There's a frenzy of activity across Africa at the moment. to be able to take that funding and use it for real change. We see identity and signing being a single value proposition and we see only 1 company positioned to offer the identity and signing capabilities. And we're ready for the post-quantum challenge. We're investing in it significantly. And really an accelerator to the business beyond this is that much of our conversation because it's easier to explain is around giving identity to people. But AI is going to mean that identities have to be extended into the noncarbon world, the silicon world. So grappling with how we prove the model that was behind creating content and sign it and linking it to the information that was used to train the model is going to be an explosion behind the utilization of our trust services. So I'm really excited later today to unpack some of this to you in more practical use cases. Look forward to seeing you there. Thank you. And I'll hand over to Dr. Mabaso.

All right. Good. It's still morning. Good morning, everybody. I know it's been a marathon of presentations. So 1 last time, I hope that you can give me your attention. Everybody fondly calls me Dr. BAM. I was born in Nimpopa, and it's a little bit about how I grew up. I actually grew playing cricket. I was a batting all-rounder, good bowl, fast media, which was pretty good. And when this fast ball called AI started coming at everybody, and I think every single organization had to suddenly decide, how do I play this ball called AI, right? And so we got together as a leadership team, and we said, how do we do this, right? And we needed the width of an opening batsman. Opening batsman knows how to assess the threats, knows how to kind of counter the attack and then ultimately, build the solid foundations from which you can win. And so we came up with this very simple 4 pillars that we believe are very important in terms of how we will adopt the AI, in fact, are adopting AI. The first thing that we did is we said, "You know what, we need to side with our people, because the biggest disruption is your people, right? That's where they get very confused, there's all these tools that get deployed everywhere, and we realized that we needed to intervene at that level. And that's why the first thing, before we deployed AI anywhere in our operations and in our customer base, we start with our people, right? That's the first thing. The second thing that we realize is AI doesn't necessarily change your business, right? If you're a bank today, you're still going to have customers. If you are a health care provider, your primary job is for to provide health care services. It's not going to change. what AI does though is it enables you to do those things a lot better. You can respond to your customers about better, you can provide your banking services a lot more swiftly. So that's the second realization that we came across. And so to ensure that we don't get blockers from the top, there was actually in this very room. I know that it looks different. And this is how it normally looks by the way. It was in this very room that we trained our entire ExCo. There's not a single person, from the CFO, CEO, in the leadership team of Altron that has not been trained on AI. They know how to use it and they use it on a daily basis. That was very, very important for us to do that. The second thing that we did as well is we also extended it to what we call extended ExCo or our top 100 leadership. So every single person that's won down from any of these leaders here has also been equally trained in how to use there. And this is everything from the ethical use of AI. How do I use it in my day-to-day job? How do I use it for strategic planning, et cetera. This has all been deeply embedded within the leadership team. And this has been running like this for more than a year now. The second thing that we did as well is we then looked at the entire employee base, right? We've got in roughly 4,500 employees within Altron. And you can imagine the amount of risk that comes now because of this fast ball called AI, right? There's lots of data exfiltration risks, but we had to go and assess -- when we started then, I mean, this number is probably a lot bigger now, but there were over 120 AI tools that were being used, unsanctioned by the way, by various people within the organization, and I promise you it's happening in new organization, too. right? I can give you that for free. And we had to decide how do we then look at this, assess it and then decide on the true tools that we are going to standardize on as Altron. So we did that work, we looked at all the policies of all the various organizations, and we standardize on the truth that we then are using right now. We then qualified all of this in a policy, right? We've got a policy that I manage a monthly AI forum. So every single thing that we do around AI, we make sure that it's correctly governed as we go along. We then launched courses through UTM, et cetera, where we started training our employees at large to ensure that they can then get certified in terms of how they use AI. To give you an idea, just last month, we generated over 30 billion tokens of AI content. 30 billion tokens of air content is roughly around 250,000 full-size novels. That's the amount of content that people have generated. I can see some of the concern in your eye is going, what if it's slop, whatever your people are actually not really using it for what they're supposed to. While the top 3 use cases, by the way, is one, cogeneration; two, deep data analysis. So for example, we find a lot of people using it to analyze incident logs, security locks to help them define what is the issue a lot faster than what they used to before. So things like correlating across multiple documents, which will typically take a person a week to do now they can do in less than a day. Those are the top use cases. The smaller things like generating reports, summarizing an e-mail. When we actually look at the stats, those things don't generate much of the consumption at all. which means that our employees are actually starting to generate and use the tools for the right reasons. And that's why, by the way, that we've taken a stance is ultra on that. For us, AI is about empowering people. So we don't see us ever having to let go of people because of AI, right? We let go of people because of regular course of business, right? Let that be a business decision, but it's not going to be because of for us, AI is about how do we empower employees to do more with what they have. The third thing that we then did is, okay, fine. We've taken care of the leadership and the employee layer, how do we now embed this within the platform businesses. And this is a very, very important one. We're going to be showcasing in the demos, how we've embedded AI in the platform businesses. If we had to warrant Warren is going to showcase something there, you'll see Andrew, you will see Leslie. But also in the AI factory demo, I'm going to show you some of these that are highlighted in yellow. And the main reason for this is the AI factory is primarily deployed so that we can accelerate the platform businesses. Remember, AI is not the business. The business is the mobility, it's the health care, it's the payments. We are very clear what the business is. AI is what enables that business, and we expect that to accelerate those businesses. That is the point. So we don't lose our heads around, now AI, suddenly we must do something different. We know what our business is about and we can use this tool to accelerate those businesses. So I look forward to hosting you in the AI factory demo room where I can show you a little bit of these demos. So we launched the AI factory last year in October. And although we firstly launched it so that it can be an enabler for our platform businesses, we also opened it up to customers outside. And I'm very excited to share that we've got enterprises already that we are deploying to in their environments and helping them to leverage AI appropriately. And so some of the things that we have done is we've partnered with NVIDIA. We've partnered with Teleco as well, where we can look at a secure environment that is sovereign, that is secure, that is fast, where we can deploy our applications in a safe manner. So the 6 things that we are focusing on, I'm not going to go through them because when we go through the demos, I'll go through in a lot more detail. But in summary, that's what we are doing around AI, right? Top leadership, all trained, all using it on a daily basis. Secondly, all our employees, all trained using it on a daily basis. And when we look at the actual stats, what they're using it for, very, very highly productive use cases and very -- and finding very few of the ones that would say is slot generation, et cetera. And then the third thing, it's there to empower the platform businesses, right? So to ensure that we can do payments, health care, telematics, et cetera, a lot faster, a lot better than what we were doing before. And then lastly, we are just in the early stages of commercializing it through our traditional business and opening up this platform to our customers as well. Thank you very much. What I'm going to do is I'm going to hand back to our esteemed leader, Captain Werner Kapp.

Thanks, Andy. I was the #3 Batsman that benefited from openers like you seeing off the new ball. I just made a couple of notes here that I just wanted to share with you as we close off and then we go have a well-deserved lunch that I sort of took out of these presentations and for us as a business overall. I mean the first one, as you saw is that globally, digital adoption is accelerating growth. What we see within the South African context is that the public infrastructure and the services are under pressure. But we have a large and growing informal economy where we're seeing rapid adoption of digitization, which is supported by this mobile-first penetration that we have, by the superb connectivity infrastructure that we have in South Africa and also some regulatory tailwinds that I think a lot of our folks took you through and you can see that they really understand this landscape. And our multi-platform ecosystem offers the digital solutions that is then uncoupled from structural economic growth that is adopted by our customers. I mean, both our enterprise customers, small, medium enterprises and also the informal sector. And this stuff is complex. This stuff is complex. We've spent 30 years building these platforms, the distribution systems, understanding the regulatory environment, the trust that's embedded in this global and the local accreditation. And over the last couple of years, data is becoming an increasingly competitive moat for us in this space. We have an experienced and committed team. I think, hopefully, today, you've seen people that could not be more passionate about what they do, and we have a track record of delivering returns. And our platform businesses, as we said, is something that we think is unique. It's supported by 90% annuity revenue, strong unit economics, an ungeared balance sheet and multiple industry exposure. So we're really, really excited about what we're doing. We're really, really excited about how we think our unique combination of multi-platform businesses can continue to drive rapid digital adoption in the South African economy. We're very, very clear about what it is that we're trying to do for the betterment of our customers, our country and our people. And we really believe that whilst doing this, we can deliver sustainable growth and returns or continue to do so for our shareholders. And we're super excited and we're super committed to this journey, and we feel we've only just begun. As proud as we are of what we've achieved so far, we think there's a lot more to go and really looking forward to the team and their people being able to unpack this with you in more detail, I think, Phil, which will be after lunch. So with that, I think we're going to go out for lunch. Thank you very much for listening so far this morning. [Break]

Okay, guys, thanks very much. We're heading into the back end of the day. We're going to do Q&A after this. I'm going to spend 2 minutes just briefly reminding you again how we look at capital allocation in the group. Phil just reminded me all the presos of today will be uploaded to the Investor Relations website. So if there's anything you missed or you're not sure about, you can go there and go and just replay or relisten. When I'm done here, the MDs are going to come on stage and Bronwyn will be facilitating the Q&A session. Guys, you've all seen this. We've now consistently shown you the capital allocation framework over the last 3 or 4 reporting periods. And the numbers is as we reported at the year-end. But what I wanted to do today is just to tell you how all of this that you've seen today is supported by our capital allocation. And what we've said from the beginning is, first things first, financial discipline is critical for us in this group. One of the first things that we did when we arrived here 3 years ago is look at the business, and I remember saying to Werner, where is the cash? We have these fantastic businesses, but I can't see the cash anywhere. It's stuck on the balance sheet or it's disappeared halfway through. I don't know where it's gone to. I think we've managed to make quite a bit of progress over the last 3 years where this EBITDA operating cash conversion is something I keep my eye on because as I said at the last results presentation as well, when things go well, all of a sudden, everywhere there's a leaking hole where cash disappears into because there's all kinds of stuff happening. And for us, it's critical to keep our eye on this, keep our eye on expenses, make sure that the financial discipline in the group remains sound working capital management, collecting what's due to us, making sure our foreign currency hedging policies, all of these things that we keep our eye on this because we don't want to go backwards from here, we want to accelerate. And if you think about how the group is shifting to a multi-platform business, what you should expect from us is to see better cash conversion than this because this is the platform -- it's the metrics that run out of the platform business. So we want to generate as much cash as we can out of our businesses. Then we put that money back behind the highest growth opportunities that we see in the group. And we've said this before, but maybe just to drill down a little bit further on this. So we've said it's platform focused, but it's not blanket platform. Within the platforms, all the indices in the platform businesses need to compete for capital. because there are certain platform businesses that has a higher demand for cash and a higher possibility of returning it. And then within a business, within Netstar, for example, there will be certain areas that we want to allocate cash to and others that we say -- sorry, we don't think the conversion here. So that's the level of discipline we go into when we allocate capital in our group. For us, it is quite important to have a steady dividend payout policy to our shareholders. We have no plans to change this. The special dividend that we declared this year was because of an accumulation of surplus cash. And as a result of the fact that we didn't execute on any of the M&A opportunities, that cash we decided to return to shareholders. We will stay at a 50% or a minimum of 50% headline earnings policy payout. What we then end up with is flexibility. It is critical for us to have financial flexibility. The opportunities for inorganic growth comes when you least expect them. And at that stage, you want to be able to move fairly quickly. And that -- the fact that we have cash and we have available debt, we are way below our covenant levels. We have capacity of -- in the order of about ZAR 3.5 billion of debt. Obviously, that will also depend on if we buy a business, what is the shape of that business? Is it a cash-generative business? Do we need to invest further in it. But that's the way we look at it, and we want to have that flexibility so that if and when these opportunities come by that we can execute on that. And then if we find ourselves in a situation where surplus cash starts building up again, then we will return it to shareholders. The last point I want to make, maybe just to close off on share buybacks. We've had the question a number of times. We have a severe liquidity constraint on our shares. Our top 4, 5 shareholders owns more than 70% of the group, and they are not sellers. And so for me to do a share buyback at a minimum amount that doesn't move the needle, I think that there's better ways to allocate capital. So I think that's it. So overall, we are sticking to our allocation framework. That's the way we think about it. But this financial discipline around capital is critical to us, and we're not planning to change that. Bongani, that's it. Can I hand over to you?

Carl. Could I ask the MDs to come and join me? So we obviously will be diving into audience questions. All you got to do because we are on broadcast signal to me that you want to ask a question, we'll deploy a mic. And then for the sake of our broadcast audience, if you can just speak into that mic and address your question to the relevant MD. And I want to start. I know you were getting off guidance. Talk to me about the guidance for the next 3 years, please.

Maybe I just stand up, sorry, because I know there's people on the webinar. I think, Brian, a couple of things. I mean, firstly, we gave very clear guidance, I think, going back 3 years ago when we were quite clear about the portfolio that we that we own. We upgraded that guidance, I think, about halfway through it when we decided not to dispose of the ADS business, and we're obviously very pleased that we've met and beaten that guidance. Where I'm less inclined to give absolutely detailed guidance in the transformative growth journey, I just think the flexibility it gives you. I mean I think the reality, which hopefully you've gotten out of today is also some of these opportunities are quite quantifiable for us, which is fantastic. But I mean, we don't want to give clear customer acquisition targets, clear cost-to-serve ratios, et cetera. I think, obviously, we're targeting sustainable growth over the next 3 years. For us, sustainable growth is at least in our platform businesses, I mean, single high-digit revenue growth and double-digit growth at an EBITDA line. We've given guidance around our medium-term targets, operating margins and platforms. I said we want to be north of 26%. IT services, we maintain our guidance of being north of 7%. I think we've guided around the once-off impact that the tax rate we will have in FY '27 with the normalization of the tax rate, and that's the guidance that we're sticking to.

Before you sit down, Katherine Thompson from Edison. I would like you to talk about the opportunities you see to expand outside of South Africa for each of your platform businesses.

I don't necessarily see -- well, okay, actually, that's an unfair question. There are opportunities to expand outside South Africa. I think the most natural 2 ones would be Netstar, and I think we've spoken about that at length, but maybe just to recap, we have operated in that Southeast Asian market, particularly in Malaysia for about 10 years, 10-odd years that we've been now. So we're still looking for the right opportunities, sustainable opportunities for us to change being just a distributor to actually growing in SVR and telematics business there because of the scale of that market. But we're very selective about how we do it. But we do believe that if there is a model that one can export successfully, we believe it's that model. I think Andrew has articulated some of the opportunities there are outside of South Africa, but that's not acquisitor opportunities. I mean they are business opportunities for us. I'm not sure that -- I mean, Stech is a very specific market, very specific to this kind of ecosystem, et cetera, et cetera. So if we were to look to acquire organically outside of South Africa, it would pretty much be in Netstar.

I'm going to allow you to sit down to the stage -- thank you very much. Could I turn to you as the audience in the room, please? I want to get your burning questions up to the Managing Directors. I know you have had the chance to engage in the different executions outside. We do also have the online audience. I do see questions coming through, so I'll start addressing those. You to you from Nick Rogers, Harvard House. Please comment on the Saabs payments ecosystem modernization program and majority stake in Pay Inc. from a competitive and margin point of view.

Thank you for the question, Ian. We don't see Pay Inc. at all in competition to us. They're an enabler for our business. The Paya rail that Pay Inc. is responsible for in the country is really a rail that's in competition to Master and Visa, those card schemes. We're embracing that transaction role. Arguably, I'm of the view that we're the largest user of the Paya rail in the country because all our loan disbursements are done by the Paya rail. And we have a commercial relationship with our sponsor bank. And that gives us a competitive advantage because we can now process transactions at a vastly reduced transaction fee. So that's usually beneficial for us.

So if we aren't having questions from the room, you leave them to my discretion. And I think the management team is hoping that you weren't going to do that. There we go saved by Anthony.

It's Anthony from Investec. So over the years, we've become familiar with the 3 platform businesses, but it sounds like there's a fourth child in the room. So perhaps if you can just talk about how security qualifies as a platform business and how the mix of revenue is becoming more annuity in nature and hence, why it qualifies as a platform business and why you're so excited about it?

I have to just refer to the synergy here. That was exactly what I was going to ask. Take it away, Andrew.

We sat back 6 months ago, and we're seeing the success, as I presented earlier, in our trust services platform. We also strongly recognize the tailwinds that we're experiencing in the IT services part of our business. And we realize that these 2, in many ways, synergies needs to be addressed in different ways. Number one, the acceleration of platforms has to be protected, and that is where we see the growth of Altron Security going into the future. At the same time, it's critical for us to be prepared for the cyclic turn in IT services. To do that, we organized ourselves in a way to be able to do both at the same time. And really, that's allowed us now to be able to invest in the platform business to be able to scale from just providing those trust services now into the value-adding services up the stack, in particular, seeing digital identity for these various ecosystems being a strong growth tailwind for us going into the future. And by the way, this isn't. This is just an interesting lithium water bottle.

Yes, very interesting lithium water bottle. In terms of your strategy and that of Karoo, they're very closely aligned. Can you talk to me about differentiators?

So I think the first point to make there is there's elements of overlap where strategies may be closely aligned because we play in some of the markets, we do similar things. But I think that's really where it ends. I mean at a strategic level, I can't comment on their strategy. I can look at their operations and their results, and I can see the elements that they're doing well. But -- and hopefully, the people in the room today have heard and have seen through our demos that our strategy is somewhat different. And our strategy is going to be executed flawlessly -- we have some structural differences, particularly in our OEM-centric nature of our business. We are very heavily leaning into the sort of the AI processing and the use case beneficiation for our clients. And when we take things to market, we make sure that we take them to market professionally. We also have an unbridled investment in our Fleet bureau, which is continuing to grow, which is hopefully through the demos, people have really got a sense of seeing what that delivers not just for our customers, but for safer roads in South Africa. So I think there's enough differentiators between the 2 businesses for them to play their game and for us to play ours. And we're very confident in the strategy that we have, and it will all come down to our execution.

Johan, I want you to look me in the eye when I ask you this question. I know you've been asked a number of times in terms of whether you can maintain your returns in the SME environment, 20% returns. I'm asking you again.

I'm not going to comment. I'm going to comment on what we are doing to strive to do what you ask. So we've identified the informal market segment as a next frontier because of the research and the investigation that GT Alcock and the likes have done to try and quantify the size of that market. So I haven't interrogated the numbers, but if you can believe the numbers, it is quite staggering, and it goes into anything between ZAR 500 million to ZAR 1 billion. So that's quite substantial. We've identified certain areas in the informal segment where we believe our products are well suited to address that segment. So we are embarking now on an education and a change management process with Kazisquad team to get a better understanding of that market. And we believe that market is going to give us the returns of what we're investing now. We're not going to let up on our existing market. We are fierce competitors. We compete aggressively in the market. We'd rather invest margin than losing a customer. So we're going to continue doing that. We're not going to let up on doing that. And then for us, there's the whole payment ecosystem modernization outcome. We see that as a huge positive for our business. And that's going to allow us to be even more of a fierce competitor than we are now in the market.

Maybe I can start. Satish Kumar from FNB. I just have a question on Netstar. Warren, you've mentioned that you guys have taken the time to build the products now it's just a matter of getting them out there in the market. So what does that investment in marketing look like, number one? And should we expect any volatility or rather compression in margins in the short to medium term?

Great question. And you're right, unless we are able to tell that story better and to push that, we're not going to see the uplift that we want. So we've doubled our marketing spend year-over-year. We have Marissa, our Group Chief Marketing Officer, who's filled the post in Netstar essentially with her and her team have really lean into really kickstart the marketing initiatives. You're going to see that rebranding exercise, a lot of that foundational work taking place in the market. Richard, who's in the room with us, has joined us today, has been appointed as our Group Sales Director. Richard comes with 35 probably plus years of vehicle, motor and telematics experience having worked across the world. We are investing in sales. We're putting a lot of money into our sales force. And fundamentally, the execution will come down to people first, right? We talked about culture. We talked about purpose and then it will come down to rand and sense that we put into it. If you're asking, are we going to dilute margin to do it in parallel, and I think that's probably one of the things that I'm relatively known for in terms of our businesses is really driving our operating leverage. So we are, at the same time, conducting an enterprise-wide review of our operations. You will have seen margin expansion and EBITDA expansion. We're doubling down on that. And again, the use of AI is assisting us. It helps us to scale without necessarily always putting in more headcount cost. So the intention is not to be margin dilutive in this. We do want to optimize to invest.

Kain from Investec. So I've just got one question for Leslie and then one for Johan. So for Leslie, you spoke about Dis-Chem and their new loyalty program, and you spoke about the interaction you have with data with the pharmacy retailers being Dis-Chem, Clicks and Med rise. Could you just speak more about that relationship? How do you deliver value to them and then how you monetize that relationship?

Thanks. So just the pharmacy retail sector is going through a massive change, right? The fight for consumers coming into the pharmacy is massive because the ratio of -- when you go in for a script to the shopping is quite lucrative, right? So how we use our data is to help understand the market share by suburb, what are the burden of diseases by suburb, -- how are you spending your money by a specific location? Do you need to gain market share because we can see it through our data. And to say, do you need to place a store here, so we can look at identifying the propensity to absorb market share. So if you look at one of them, -- and they got -- let's say, they're sitting at 25% market share, but in a certain area sitting at 12% market share, then there's clearly something that needs to be done. Because we can see what goes through in terms of chronic conditions, what scripts are going through, we then can advise. We won't tell them exactly where to place, but we can say this is how you get market share. That's a simple way. And it's not a one-off solution. We then sell it as a consumption of our data to be able to inform that complex problem. Of course, the second part to it is if you're doing marketing and you are spending billions of marketing, but you don't know where it's landing, we can tell you that in a certain node or certain suburbs, there is a higher concentration of hypertension or diabetes or whatever that sort of thing is going on. And then you get sort of more focused marketing spend. And because our data is coming through our transaction systems, we're in a fortunate position, we call it real-time or high velocity data. We can see it almost immediately on the uptick, right? And so that's kind of then guiding those -- just 2 examples of how we're supporting retail pharmacy.

Kenan, can I jump in with a question from Miles Fe and then come back to you and then to Anthony. So from Miles Fe, how fundamental Andy, is the AI factory in Altron's transformation growth?

Thanks, Myles. So look, I think it's -- I think AI in general for any enterprise is going to be fundamental. And in this way, right, it's not going to change what business we're in, but it's certainly going to change how we deliver that business to our customers. And I think hopefully, through the demos, you've seen already how that's starting to impact in the various platform businesses. Like I said before, there's 3 things that we're tracking there in the platform businesses that we want from AI. Number one is we want to absolutely increase efficiency. Can we do what we do better, quicker, faster? Number two, can we take out cost? Can we have better leverage? And I think that's what Warren was mentioning by leveraging AI to ensure that we can take out costs. And then the last one is, of course, increasing revenue. Can we deliver those products better at a better margin so that we can get better returns. So I think it's going to be pretty fundamental going forward.

Thank you, Andy, back to you.

Johan, you spoke about the returns in the fintech business and whether you can not maintain it. The informal market is becoming quite crowded, I would say. So I'd ask which part of the -- or which verticals in your business currently you see coming under more pressure?

So we have pressure full stop. from our competitors in the fields that we play. So they are very constantly there. And they've been there for quite since the start of time with our business. So we're pretty accustomed to all the usual suspects in our traditional markets that we have been servicing up to now. We have seen lots of entrants now that's going after the informal sector. We have looked through their service offerings. We have decided that we are not going to compete head on with them in that market segment with their offerings. We're going to focus on the market segments where there's a need for our existing products and services that we do have in our portfolio. So we are going to, with our Kazi team, identify those niches where our products and services can be quickly deployed in the change management process that we're embarking with our team. Should we then on sell a competitive product to the existing actors in the market, then but we'll lump that into a collapse service, so to speak, whereas the differentiator is our product and not the debit and credit card product that they're selling in the market. We want to create an environment where we've got a cost-friendly product in the market that run on rails that Pay -- in like the Pay Chapro is an enabler for because then we really hit the sweet spot of working with the consumer and the merchant because Request to Pay is on its way. And that will be coming at the same -- well, hopefully, at the same fees that Payhapp came in from person-to-person payment. And if that happens, then we've got a show on that.

You spoke about the COGS part of the payments ecosystem.

Just a little bit...

The COGS part of the ecosystem earlier and the regulation in November and exactly what you're alluding to. Maybe you can elaborate a little bit on where you see that deviating.

Well, I mean, there's a few payment activities that we could apply for to be licensed as an operator. And those payment activities, which today we buy from banks. So we get a selling rate from the bank, and we have to put a margin on that, and we have to run our business on that margin. So if we can remove the bank's margin and we can directly integrate into the national payment system, then that margin is our margin. And then we can do with that margin how we see fit, either get new markets, pass on fees to our customers or consumers to gain market share. But that's a decision that we will take once we have seen how fast the [ SAB ] can issue these license because at the bottom of all of this is the prudential authority. And the prudential authority is the ultimate [indiscernible] for your application. So we're working with our teams now to make sure that we've got squeaky clean applications and we pass at the first go with it because we're quite aggressive about this initiative.

Excellent to hear that you've got squeaky clean applications.

I actually want to come back to AI factory again because I think it's been one of the big learnings for -- certainly for me, but I'm sure for others, is just how the investment into that kind of synergistic tech is enabling faster growth at the different business units is also lifting efficiencies. And now you said it's also saving money. But clearly, a lot of investment has gone in. Carl, I think we might need to lean on you a little bit here. But has that resulted in significant extra cost kind of at the central corporate level? I'm sympathetic that it's difficult to map how quickly this is going to grow, how much more cost and energy it's going to require. But I'm sensing a great willingness on behalf of the Altron Group to drive these benefits in the different business units through AI Factory. So how are you going to manage that? And how will you measure and evaluate that and report back to us as market commentators?

Sure. So with AI Factory, we run exactly the same process as any other business in the group. There's a budget for Andy, 3-year plan. There is KPIs that he has to achieve every year. So it's no different. It's not a blank check coming back to the financial discipline issue. It's not a blank check that we've thrown out there. We are, however, saying if this thing picks up speed, we are prepared to put more money behind it. And the Board is very supportive of that as well. So we're starting off quite cautious. The CapEx portion of this is actually a lot smaller than what you think because that's really for the hardware that Andy had to buy to put in Teraco center to run this. The rest of it will all run through the income statement. It is not a material number at all. But if this takes off, I think we would seriously look at putting more money behind it. And then we will come back. But one of the targets that Andy has got is to bring an external customer online this year already. So we see this -- this is going to be -- we're going to get to the end of this year, knowing whether this is something that is outperforming or whether this is simply an operational AI advancement or if there is an external business plan on that or not. And then based on that, we will decide where we going forward. I don't know, Andy.

Yes, spot on.

I could possibly give you a practical use case that we're actively and aggressively wanting to explore this tech is SIM swap fraud. I mean the CEO of Vodacom was on record stating that [indiscernible] process is as broken as a leg. And he's throw in the top. Our biggest risk in our business is SIM swap fraud. And we want to eradicate this with this technology. So our teams -- all the dev people have got those entry boxes that we put for the dev teams, and they're working now how do we get to know SIM swap fraud for our business in the bank. Should that be translated then into the MNO space, who knows? We don't have that ability. But we want to nip that in the bud for our own business. And that's what our teams are busy working on. Should that then be a solution that we deploy in our business, we can roll that out into Andy's factory because it's a lift and shift to the factory because the tech is the same, the OE systems are the same and there's no kind of migration activity going as part of migrating to the factory. So that's a typical use case. So we'll be consuming the AI factory data, but not reselling that. Possibilities are there are, but who knows. And then with Andrew's assistance on the security side, there's some runway there to add some certificate and key exchange management to also end up in. That's a serious problem that we have in the country today.

Thank you, Johan.

If I just think about AI factory for a moment as a platform and especially just leaning into the open source routes of where a lot of AI is sort of rooted. I wanted to get a sense on -- in the same way that NVIDIA has a list of models that people can use, is there an ability for people that are using the AI factory, whether yourselves internally or some of the partners that you might have to maybe contribute. I think in one of the demos, for example, we saw that there's a demo where you get customer support is ingesting different languages, right? And in my head, I'm like you can develop something like that yourself or lean into Lelapa AI, which is one of your launch partners. So I was just wondering how do we think of that? Is it closed? Or is there that ability for different companies to sort of contribute maybe some of what they have done and then others to leverage it sort of as a -- maybe as a value proposition for that whole platform?

Yes. Thanks very much for that broad question. Look, firstly, we've licensed the entire NVIDIA stack. So every single model that you mentioned that NVIDIA has, we effectively have, which means we can self-host, fine-tune it, improve it, et cetera, for various use cases, both internally but also for our customers as well. In terms of how we collaborate with other partners as well, yes, absolutely. That is a model that we do follow, which is working with somebody to help develop a specific area, right, that maybe we don't have expertise in, right? So you spoke about local languages, there could be education. There's a whole lot of other areas that we may not necessarily have expertise in where we can partner with somebody. So we've absolutely done that in the past. I think the thing with partnership, I think we need to separate partnerships like that from driving real business value kind of enterprises, I think those are quite separate endeavors. I think we would do that to increase our capability so that we can sell more to our enterprises. But I wouldn't see that as a big revenue driver in the future. I think it's more just around can we increase the capability base that we have so that we can sell more to our customer environment.

Andrew, how big is the Africa opportunity when it comes to security and digitization?

Yes. Thanks. Werner touched on it. I mentioned it in my talk earlier that we're seeing funding coming internationally for African countries to be able to pivot over some of the constraints that they've had, specifically on digital identity to be able to bypass having to issue physical identity is a huge problem in Africa and go straight to digital, low barrier to entry. So we see it as a great opportunity for ourselves and one that doesn't require a large platform or footprint, one that we can handle organically, being aware of the market and looking for those nations. So definitely part of our success in the next year would be to capitalize on that opportunity.

And Miles, lately for you, will HealthTech add other disease solutions to the HealthOne platform, e.g., cardiovascular, renal, rumor?

So Miles, yes, we built this oncology solution with that in mind. That was the entire idea. We built it on our platform so that we can decouple it or reuse pieces of it for other kind of chronic conditions, diabetes being the next one we're looking at. we want to really master the oncology, right? It's in its infancy. We've looked at all the different pieces. We have solutions. Now we're orchestrating all the pieces. We have to be able to really get that return coming out of it before -- then I want to move into the next. But we've purposely built it that way. Even the data reporting that comes out of it, we can reuse as well. So that was kind of the logic. But I do want to make sure that I exploit this oncology one. It is the biggest cost burden coming through from the schemes to the providers. So that's why I want to kind of really master that before I get on to the next one.

Final question to come from the floor.

Just remaining one on HealthTech. Could you just maybe unpack the opportunity that NHI brings? You mentioned that there is an opportunity.

Absolutely. So I mean, really, what's -- what we're really good at is primary health care, right? 40% market share, 20,000 practice numbers is primary health care. That is really our bread and butter. It is very sort of straightforward to then roll that out. And the way we've built our platform is that adding another 1,000 practices, 2,000 practices does not necessarily add significant cost to us. That's how we built the business platform. Adding another 1 million, 10 million switch transactions doesn't mean you're going to add in a huge amount of cost. That's the way we've architected the thing. So coming back to NHI, our core systems are highly relevant. We were the only company from our core practice management system that could interrogate the public sector databases for referral of patients. So this was quite a strict test done by CSIR from our core systems following very clear health care standards, which I won't worry you about, but you had to do it in a specific way. And we were the only company that got all the certification. Some of our competitors actually pulled out of the process. Because it is so complex to be able to refer a patient, and let's say they want to launch with maternity care. You can go to your normal GP who's on the private sector, but you've got to refer into the government database maybe for ultrasound, maybe for whatever the case may be. Now we can interrogate the database and see where we can take the patient back into our system, so you can see how it's starting to come together from a technology point of view. That opportunity is massive. And then, of course, the claim switching. There's no difference between a claim switch to a national provider, insurance provider, government to all the 71. We run it all. In fact, the complexity that we run is massive. All those rules, et cetera, are already built into our solutions. And that's why I think it's such a massive opportunity if we can get into it. And when we were asked to go to CSR, we went and we jumped in with everything we had because we knew the opportunity so there.

Thank you very much. That brings us to the close of Capital Markets Day 2026 for Altron. Appreciate your time, gentlemen. Certainly appreciate all of you here joining us live. And of course, to the audience joining us online. Thank you for joining us. The presentations, just to reiterate, will be on the IR website. Any further questions to your Head of Investor Relations, Philippe, who you all know very well. Again, thank you very much, and thank you to the team.