2019 RESULTS

Casablanca - 20 March 2020

FINANCIAL COMMUNICATION

1

Summary

Context of the year 2019Financial reviewOperations reviewProspects

CONTEXT OFTHE YEAR 2019

3

The payment market in the world

CAGR

(2017–22F)

Growth

(2017–18F)

Global 14.0% 11.2%

MEA 21.6% 17.9%

Latin America 6.0% 5.5%

Emerging Asia 29.7% 28.6%

MatureAsia-Pacific

10.2% 10.2%

Europe (Including Eurozone)

8.5% 6.3%

North America 4.7% 4.7%

7.1%

Developing

23.5%

MatureNon

-cas

h tr

ansa

ctio

ns (b

illio

ns)

1.200

900

600

300

02017 2019F 2020F 2021F 2022F

176.3 192.8 201.8

156.3185.9

203.6

161.1

269.5

352.8

67.681.7

90.2

48.4

54.3

111.257.7

139.3

160.6

133.8

96.2

55.6

43.149.3

538.6

168.2

144.2

123.7

61.3

45.5

604.7

684.1

184.5

170.4

208.7

74.2

51.1

90.2

779.2

895.5

1,045.5

2018F

61.9

74.4

Source: Capgimini payment report 2020

4

2019, moving towards meeting our strategic goals

Achievements in 2019

Ambitions Solutions Processing Services

Regional diversification

Diversification of the offer

Recurring revenue

Operational excellence

FINANCIALREVIEW

6

• Strong growth in Solutions

(+13,0%) and Processing (+22,4%)

• 27.7% increase in recurring

revenue

Operating revenue

719.6 M MAD

+8.6%

• Increase in Processing

activity with recurring revenue recognition linked to

this activity

Operating income

126.9M MAD

+14.4%

• Impact of the currency effect

on the financial result

• Non-recurring items linked

mainly to the social solidarity

contribution

Net income

93.8M MAD

+1.7%

• Deployment of large-scale

projects with longer implementation cycles

• Payment of the balance

relating to the acquisition of

the Switch activity in

Morocco

Treasury

85.5M MAD

-30.5%

2019 in short

• Operating margin of 17.6%

up 0.90 pts

• Positive impact of

operational excellence

efforts

Operating margin

17.6%vs.

+16.7%

7

22%

25%

21%6%

1,5%

8,5%

74%

16%

10%

2019 highlights by activity

Diversification with the strengthening of our position in mobile banking

Strong momentum in diversifying geographic presence

Growth in upsellingDelay in the renewal of major contracts completed in the 4th quarter of 2019

New listings with major players in France and start of projects with new clients

Dynamics of Switching in Morocco

Increase in recurring revenue linked to Payment projects

Deployment of the Société Générale project in 13 African countries (Payment) and in production in 2 countries

+13.0%*Solutions

+22.4%*Processing

-13.3%*Services

Projects

Upselling

Maintenance

Licence

SwitchingPayment

*Compared to 2018

8

Diversification of the offer & strengthening of recurring revenues

Solutions Solid performance of upselling and licence revenues Growth at maintenance level

Launch of major projects Strengthening of our position in M-Banking

Processing Recognition of the first revenues from the Payment Processing activitySigning of the first Microfinance Processing contracts

ServicesLate renewal of contracts in the 4th quarter of 2019

662.5+58.6 +12.3 +2.9 719.6-16.7

Operating revenue 2018

Solutions activity

Processing activity

Services activity

Other Operating revenue

2019

320.8(48%)

409.7(57%)

Recurring revenueIn M MADIn % of operating revenues

In M MAD

9

Geographic footprint and regional diversification

Americas

23.4 M MAD2019

-24.8% vs. 2018

Europe

206.2 M MAD2019

+8.8% vs. 2018

Asia

148.3 M MAD2019

+17.4% vs. 2018

Africa

297.3 M MAD2019

+1.7% vs. 2018

Africa Continued high production pace with customers in South Africa

Expansion of the client portfolio

EuropeGrowth in the upselling of the Solutions activity which offsetsthe decline in the Services activity in the region

Asia Strengthening the customer base in our historic Middle East regions Successful deployment of the Singapore office with the adding of several countries

Increase in the customer base with 3 new customers

Americas3.5%

Europe30.5%

Africa44.0%

Asia22.0%

10

Operational excellence

Staff expenses Change in the workforce (+9%) combined with an increase in salaries

External expenses Sustained commercial effort through a presence in 23 major events in the payment industry

Increase in rental expenses relating to the installation of new premises

Consumables purchasedStable trends in subcontracting

Operating allowancesAmortisation in relation to investments made in the context of PCA

* Compared to 2018** Share in operating income

719.5

-360.2+6.8%*

(42.6%)**-

139.5+16.5%*(19.4%)*

*

-84.5+0.3%*

(11.7%)**

-41.4+0.7*

(5.8%)**

-10.3+24.6*

(1.4%)**

-10.7

126.9+14.4*

(17.6%)**

Operating revenue

Staff expenses

External expenses

Consumables purchased

Operating provisions

Other operating

exp.

Other Operating income

In M MAD

OPERATIONS REVIEW

12

SalesProcessing

Switch Cards Switch Mobile Payment Processing Microfinance

Solutions

Europe

Africa

Asia

Services

13

Solutions activityContribution to overall incomeStrategic directions

Anchor our presence by targeting “Tier 3” banks and ISOs in the United States

Offer our solutions to major European processors and middle-ranking banks in

Europe

Develop a presence through partnerships in Southeast Asia and Latin America

Develop E-Wallet solutions and solutions for various players (telecom, retail,

etc.)

Business trends in M MAD HighlightsSigning of a contract with one of the top 10 global banks for the deployment of

debit cards in 2 countries (Europe and Asia)

Continued high production pace with customers in South Africa

Sustained growth in upselling

Completion of the SIA project and migration of the first customers to

PowerCARD

Option of PowerCARD for the SIA platform in Greece

PowerCARD selected for M-Payment in Saudi Arabia

Level of sales of 315 M MAD

509.4 M MAD +13.0% vs. 2018

74%

327378 455

509

2016 2017 2018 2019

410

321304244

TCAM 18.8%Recurring revenue

TCAM +16.0%Solutions activity

14

Solutions activity

Asia

30%2019

Americas

5%2019

Europe

20%2019

Africa

45%2019

ProjectsUpselling Maintenance Licence

30.1%34.3% 27.6% 8.0%

AfricaSustained activity with regard to South AfricaStrengthening of our position through the signing of newcontracts

EuropeContinued launch of major projectsSigning of a contract with a Tier 1 financial services player

AsiaConfirmation of growth potential with the conclusion ofseveral new contractsSignature of contract for the implementation of M-paymentin Saudi Arabia

AmericasImplementation of an action plan for the development ofthe region's growth potential

15

Processing activity

Organic growth in the activity and by acquisition in Africa and the Middle East

Diversification of the offer 67.1 M MAD +22.4% vs. 2018

41

59 5967

2016 2017 2018 2019

TCAM 18.1%Processing

Contribution to overall incomeStrategic directions

Business trends in M MADHighlightsPayment Société Générale Africa Project: first revenue linked to the electronic payment management contract in 13 African countries

Signature of Payment Processing contracts in the Middle East and Europe

Microfinance processing with the ALAFIA consortium project

Switching Completion of the Switching platform launch for mobile and start of actual transactions

Signing of several contracts for Switch Mobile in Morocco

10%

16

Switching Activity / electronic banking in Morocco in numbers

16.2 million cards +0.4 million vs. 2018

413.8 million transactions+5.9% vs. 2018

7,613 units+324 installations

Overall number of cards issued Transactions per card GAB network

WithdrawalNumber of operations in millions

1.2x

256,2 271,8 294,5 316,1

2016 2017 2018 2019

PaymentNumber of operations in millions

40,5 53,5

68,0 85,4

2016 2017 2018 2019

2.1x

Payment via InternetNumber of operations in millions

2.7x

3,6 6,6 8,3 9,8

2016 2017 2018 2019

29%

7.5%

Change in interoperable operations processed by HPS

Switch vs. 2018

17

January February March April May June July August September October November December

2018 2019

Switching Activity / Volumes processed and Changes in rates

0,42580,3247 0,2823 0,2614

2016 2017 2018 2019

0,8171

0,7466 0,7362 0,7271

2016 2017 2018 2019

+22%vs. 2018

Change in the Weighted Average Price for withdrawal transactions

Change in the Weighted Average Price for payment transactions

-39%in the WAP

-11%in the WAP

Number of payment transactions + withdrawals comparison 2019 vs 2018

18

Services activity

108.2 M MAD -13.3% vs. 2018

112 111 125108

2016 2017 2018 2019

TCAM -1.1%Services Activity

16%

Renewal of contracts postponed to the fourth quarter of the year

Growth of the client base (TF1, EDF, Allo Pneu, PMU, Vinci, etc.)

Reorganisation of the sales force

Referencing with major players in France and conclusion of new contracts

Contribution to overall incomeStrategic directions

Business trends in M MAD Highlights

Diversification of activity towards high added value services

Diversification in French territory and establishment of regional agencies

19

R&D effort in 2019

PowerCARD - WebPublisher

PowerCARD - eSecure

2016 2017 2018 2019 2020

PowerCARD - eCommerce

PowerCARD - Switch

PowerCARD - Issuer

PowerCARD -Acquirer

PowerCARD - ATM

PowerCARD - xPOS

80.8 M MAD

Strengthening of R&D efforts

+18%vs. 2018

20

R&D in 2020 and beyond

Strategic directions for PowerCARD

Have “infinite” scalability.

Take advantage of cloud possibilities to vary the infrastructure costs,

especially in peak management.

Ensure all PowerCARD processing is real-time to meet the challenges of

new instant payment methods.

Remove dependency on Oracle

80.8 M MAD Strengthening of R&D efforts

+18%vs. 2018

All services are real-time with supervision

V4 must be compatible with v3.X clients existing IT infrastructure

From monolith to small blocks independent updates

Database agnostic

Infinite ScalabilityOn-Premise and Cloud compliant: Hybrid Cloud

21

PowerCARD Users Meeting 2019

+400participants

+30speakers

+70countries

22

ISO 27001 Certification

PCI-DSS Certification PCA Test

A failover test at the backup site took place on 12/11/2019

This operation was carried out in coordination with all customers

The backup site was used as a production site for 2 weeks

After the success of this operation, the return to the main production site took place on 26/11/2019

Operational Performance

23

Backlog end 2019

Backlog of more than 500 MDH, representing more than 70% of the total income of 2019.

Fulfilment and delivery of several large-scale projects.

Signature postponement of certain important projects in 2020.

A growth in the share of Processing revenues in the backlog due to the commercial success of 2019 (Middle East and Europe).

23%

21%33%

19%

3%Projects

Upselling

Maintenance

Click Fees

Processing

PROSPECTS

25

Strategy

Regionaldiversification

Operationalexcellence

Recurringrevenue

Diversificationof the offer

26

2020 Prospects

The Group benefits from a unique position given

the diversity and resilience of its portfolio.

While managing the disruptions linked to the

Covid-19 force majeure situation, HPS plans in

2020:

To maintain a solid organic revenuegrowth

To continue improving the operatingmargin

To accelerate growth and diversificationthrough external growth

27

Conclusion

Sustained growth of business

Solid operational performance

Continuation of the initiatives in our strategic plan

Q & A

29

Scope of Consolidation

100% 100% 100% 100% 100%

HPS Switch ACPQualife HPS Europe HPS Dubaï HPS Singapore

ACPQ Switzerland

Subsidiaries

HPS S.A.

Corporate Financial

Statements

JV

GPS ICPS

Consolidated Accounts

25% 20%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%

Comptes Consolidés

ACPQ Suisse

100%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%

Comptes Consolidés

ACPQ Suisse

100%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%

Comptes Consolidés

ACPQ Suisse

100%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%

Comptes Consolidés

ACPQ Suisse

100%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%Comptes Consolidés

ACPQ Suisse

100%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%Comptes Consolidés

ACPQ Suisse

100%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%Comptes Consolidés

ACPQ Suisse

100%

Comptes Sociaux

HPS S.A.

HPS SingapourHPS Switch ACPQualife HPS Europe HPS Dubaï

GPS ICPSFiliales

JV

100%

100%

100%

100%

100%

25%

20%

Comptes Consolidés

ACPQ Suisse

100%

100%

30

Consolidated balance sheet (revenues and expenses) Consolidated balance sheet (revenues and expenses) 2019 2018 Change

Turnover 683,684,278 616,683,910 10.86%Changes in inventories 5,091,646 18,508,127 -72.49%Capitalised production - - 0.00%Other operating revenues 30,824,403 27,269,804 13.03%Operating Revenue 719,600,327 662,461,841 8.63%Goods purchased for resale - 1,774,989 - 3,426,393 -48.20%Consumables purchased - 84,461,142 - 84,234,655 0.27%External expenses - 139,497,796 - 119,740,516 16.50%Staff expenses - 306,242,429 - 286,676,749 6.82%Other operating expenses - 10,338,185 - 8,298,031 24.59%Taxes and levies - 8,953,821 - 8,062,574 11.05%Operating provisions - 41,412,541 - 41,109,948 0.74%Operating expenses - 592,680,904 - 551,548,867 7.46%Operating income 126,919,423 110,912,974 14.43%

Operating margin 17.64% 16.74% 0.89%Financial expenses and income - 6,305,297 -76,938 8095.33%Profit on ordinary activities for consolidated companies 120,614,126 110,836,037 8.82%Extraordinary revenues and expenses - 4,612,673 - 2,670,800 72.71%Income taxes - 29,114,774 - 24,687,593 17.93%Net profit for consolidated companies 86,886,679 83,477,643 4.08%Share in earnings from equity affiliates 10,600,607 12,444,860 -14.82%Acquisition adjustment depreciations - 3,690,912 - 3,690,912 0.00%Consolidated net income 93,796,375 92,231,592 1.70%Minority interests - - 0.00%Net profit (Group share) 93,796,375 92,231,592 1.70%

Net margin 13.03% 13.92%Earnings per share 133.31 131.09

31

2019 Consolidated cash flow statement

CASH FLOW STATEMENT 31/12/2019 31/12/2018Net income 93,796,375 92,231,592 Elimination of net income and expenses without effect on available cash or not related to the business. - -

- Depreciation allowances 19,702,875 15,797,632 - Change in deferred income taxes - 1,143,132 - 1,574,718 - Gains or losses on disposal 2,956 19,969 - Other net non-cash income (expense) 3,622,813 3,748,522 Net share in earnings from equity affiliates of dividends received - 6,088,172 - 6,379,688 Consolidated companies’ self-financing capacity 109,893,714 103,843,310 Dividends received from equity affiliates - -Change in operational working capital requirement - 61,024,039 - 20,184,284 Net cash flow provided by operating activities 48,869,674 83,659,026 Acquisition of tangible and intangible fixed assets - 30,429,281 - 11,747,245 Disposals of fixed assets net of tax - 40,948 Disposal of investments in companies accounted for by the equity method - -Net consolidated company acquisition - -Cash flows from investing activities - 30,429,281 - 11,706,297 Dividends paid to shareholders of parent company - 35,179,950 - 28,143,960 Capital increase in cash - -Other - 336,667 - 56,422 Changes in borrowings - 19,210,542 - 15,517,186 Cash flows from financial operations - 54,727,159 - 43,717,568 Conversion adjustment - 1,140,883 - 1,452,188 Increase (decrease) in cash account - 37,427,648 26,782,972 Cash and cash equivalents at beginning of year 122,893,992 96,111,020 Cash and cash equivalents at end of year 85,466,344 122,893,992