RS2 Software p.l.c. COMPANY ANNOUNCEMENTIngenico/BS PAYONE Debit/Direct Debtit Card transactions in EUR billions Debit Direct Debit The German debit card acquiring market comprises

RS2 Software p.l.c.

COMPANY ANNOUNCEMENT

The following is a company announcement issued by RS2 Software p.l.c. pursuant to the Malta Financial Services Authority Listing Rules.

Quote

Below is the presentation made regarding the acquisition of 100% of KALICOM Liebers Zahlungssysteme KG , during a stockbrokers’ meeting held on the 28th January 2020. Unquote

Dr. Ivan Gatt

Company Secretary 31st January 2020

Acquisition of Kalicom Zahlungssysteme KG in the German Market

January 2020

Executive Summary

Jumpstart for RS2‘s direct acquiring market entry immediately giving RS2 a complete POS service offering and distribution capability

2 Growing merchant and terminal portfolio (>4,000 terminals) with up and x-sell opportunities

Attractive EBITDA contribution potential diversifying group earnings

3 Potential for a significant value creation through integrated group capabilities

1

4

Acquisition of Kalicom is an attractive inorganic growth opportunity

German market provides exceptional growth potential

Market Overview

• Germany is by far the largest economy in Europe, but only the 3rd largest payment market

• Payment volumes have grown historically with a CGAR of 7-8% p.a. with e-commerce and contactless payments accelerating the growth

• Germany is an underserved market with a poor service level within the whole industry and lower innovation rate

• German card market under penetrated with below average usage per capita (50% of EU average) and relatively low terminal infrastructure (40% below average), offering significant growth potential for the future

Source: ECB

Domestic debit scheme girocard is the leading payment method

Market Overview - continued

• Germany is a debit market with the domestic debit scheme girocard (including direct debits) being the dominating payment method

• Due to local debit scheme the POS network operations are separate from card processing and acquiring

• Terminals and card volumes generate a total estimated revenue pool of approx. €1bn and a profitpool of €200m

• Payment provider landscape consolidating but still fragmented compared to other EU markets Source: ECB, RS2 expert opinion

The German Debit Network-girocard

Girocard processing via banking infrastructure drives market specific set up

German payment landscape

Market Overview- continued

154

94

105

140

210

460

- 100 200 300 400 500

Others

Concardis

CardProcess

Worldline/ Six

FirstData/ TeleCash

Ingenico/ BS PAYONE

No. of Terminals (in 000s)

The German terminal market comprises in total ~ 1,163k terminals which are expected to grow at a CAGR of ~ 2-3%

11.7

3.6

3.6

6.3

35.1

29.7

- 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

Others

Elavon

Wirecard

Worldline/Six

Ingenico/ BS PAYONE

Concardis

Credit Card transactions in EUR billions

The German acquiring market comprises in total ~ € 90b transactions which are expected to grow at a CAGR ‘16 to 20 of ~ 7-9%

10.80

1.6

16.0

11.1

2.7

36.0

20

6.8

13.6

35.7

22.1

71.4

- 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00

Others

Concardis

Intercard

FirstData/TeleCash

Worldline/Six

Ingenico/BS PAYONE

Debit/Direct Debtit Card transactions in EUR billions

Debit Direct Debit

The German debit card acquiring market comprises in total a volume of ~ € 248b transactions which are expected to grow at a CAGR ‘16 to 20 of ~ 3-4%

Source: ECB, PaySys, RS2 expert opinions

Market has been concentrating recently, however terminal distribution still to a large extend based on ISOs white labeling NSP services

Chart2


000s

OthersConcardisCardProcessWorldline/ SixFirstData/ TeleCashIngenico/ BS PAYONE15494105140210460

Sheet1

000s

Others154

Concardis94

CardProcess105

Worldline/ Six140

FirstData/ TeleCash210

Ingenico/ BS PAYONE460

000s

Others11.7

Elavon3.6

Wirecard3.6

Worldline/Six6.3

Ingenico/ BS PAYONE35.1

Concardis29.7


000s


Credit Card transactions (in 000s)

000s

OthersElavonWirecardWorldline/SixIngenico/ BS PAYONEConcardis11.7000000000000033.63.66.335.129.7

Chart2


000s


Sheet1

000s

Others154

Concardis94

CardProcess105

Worldline/ Six140



000s

Others11.7

Elavon3.6

Wirecard3.6

Worldline/Six6.3


Concardis29.7

Direct DebitDebit

Others10.8020

Concardis1.66.8

Intercard16.013.6

FirstData/TeleCash11.135.7

Worldline/Six2.722.1

Ingenico/BS PAYONE36.071.4


000s



000s



Direct Debit

OthersConcardisIntercardFirstData/TeleCashWorldline/SixIngenico/BS PAYONE10.7999999999999971.61611.12.736Debit

OthersConcardisIntercardFirstData/TeleCashWorldline/SixIngenico/BS PAYONE20.3999999999999776.813.635.70000000000000322.171.400000000000006

Sheet2

Sheet3

Chart1


Direct Debit



Sheet1

000s

Others154

Concardis94

CardProcess105

Worldline/ Six140



000s

Others11.7

Elavon3.6

Wirecard3.6

Worldline/Six6.3


Concardis29.7

Direct DebitDebit

Others10.8020

Concardis1.66.8

Intercard16.013.6





000s


Credit Card transactions in billions

000s



Direct Debit



Sheet2

Sheet3

Kalicom Liebers Zahlungssysteme KG

About the Target

Key Facts• Kalicom is an ISO business• > 4,000 terminals • 8.1m transactions• € 1.1m turnover• Located in Reinsdorf, Sachsen• 10 employees

Products• Products include:

o POS terminals

o girocard and direct debit processing

o routing of credit card transactions

o referral of acquiring services

• In-house capabilities: o terminal services

o Hotline

o Inside sales

o Outbound sales

o Kalicom serves SMEs across Germany

Market Position

Rationale for the Acquisition of Kalicom

Attractive market entry opportunity for RS2

• The acquisition of Kalicom gives RS2 a quick start into the direct merchant business

o Immediate capabilities of selling, installing and servicing terminals and processing girocard transactions in the German market for small but also mid-size accounts

o Attractive portfolio of >4,000 terminals and existing merchant book

o Acquiring x-sell opportunity for a large part of the merchant book, allowing RS2 to benefit prospectively from the full acquiring margin

• Basis for further add-on acquisitions of smaller ISO portfolios in Germany

• Prospectively interesting EBITDA margin contribution to the group

Continued top and bottom line grow

Historical and Going-Concern Business Case

Business Plan FY19 - FY24

FY 18 FY19 FY20 FY21in €k Act Plan Plan Plan

Gross profit 581,9 597,7 750,8 942,1 Expenses 479,5 390,9 369,9 390,0 EBITDA 99,4 206,8 380,8 552,1

FY22 FY23 FY24 CAGRin €k Plan Plan Plan Plan

Gross profit 1.108,6 1.325,7 1.530,4 20,7%Expenses 490,0 609,0 625,2 0,1- EBITDA 618,6 716,7 905,2 34,4%

• Very stable business with positive trending above plan in 2019

• Positive development will be accelerated by the following measures:

o In 2021 - 2023 investment in sales force to drive top line growth

o Increase credit card acceptance to market average until end of 2021

o Increased x-selling

o Higher margins through in-house coverage of the value chain, which for simplicity reasons are completely displayed in Kalicom (acquiring)

o Conversion of new terminal business to rent model

o Sufficient EBITDA generation to repay acquisition loan over 5 years

Sheet1 (2)

000s

Others154

Concardis94

CardProcess105

Worldline/ Six140



000s

Others11.7

Elavon3.6

Wirecard3.6

Worldline/Six6.3


Concardis29.7

Direct DebitDebit

Others10.8020

Concardis1.66.8

Intercard16.013.6




Terminals in 000s

Others2.5

ISO 260.5

ISO 250.5

ISO 240.6

ISO 230.8

ISO 220.8

ISO 211.0

ISO 201.0

ISO 191.0

ISO 181.0

ISO 171.6

ISO 161.6

ISO 151.6

ISO 141.8

ISO 131.8

ISO 121.8

ISO 112

ISO 102.5

ISO 93.0

KALICOM4.0

ISO 88

ISO 79.0

ISO 69.0

ISO 510.5

ISO 412.0

ISO 315.5

ISO 216.0

ISO 116.0

KPIs

201420152016201720182019

Terminals (in #)3,7683,9103,7893,8693,8444,100

Transactions (in #k)5,348.25,921.26,303.06,428.57,090.88,100.0


000s



000s



Direct Debit



German ISO-landscape

Terminals in 000sOthersISO 26ISO 25ISO 24ISO 23ISO 22ISO 21ISO 20ISO 19ISO 18ISO 17ISO 16ISO 15ISO 14ISO 13ISO 12ISO 11ISO 10ISO 9KALICOMISO 8ISO 7ISO 6ISO 5ISO 4ISO 3ISO 2ISO 12.50.50.50.60.750.7511111.551.61.61.751.751.7522.5347.59910.51215.51616

Terminals in 000s

Growth in terminals and transactions

Terminals (in #)201420152016201720182019376839103789386938444100Transactions (in #k)2014201520162017201820195348.25921.263036428.57090.88100

Sheet1

000s

Others154

Concardis94

CardProcess105

Worldline/ Six140



000s

Others11.7

Elavon3.6

Wirecard3.6

Worldline/Six6.3


Concardis29.7

Direct DebitDebit

Others10.8020

Concardis1.66.8

Intercard16.013.6




Terminals in 000s

Others2.5

Babbel EZ0.5

POS Electronic0.5

Voba Karlsuhe0.6

Girocash0.8

cardproject0.8

EHRICS1.0

Europay Consult1.0

EC Vash Direct1.0

ACS1.0

cards and more1.6

Lavego1.6

BSB1.6

POS - Cashservice1.8

Teco1.8

paydisciount1.8

PayCo2

Alpha-Cash2.0

kulam2.5

System Soft3.0

KALICOM4.0

PCS6

afc/GWK8

paytec9.0

First Cash Solution9.0

ECS10.5

hp weber12.0

CCV allcash15.5

REA Card16.0

Heidelpay/STARTEC16.0

KPIs

201420152016201720182019

Terminals (in #)3,7683,9103,7893,8693,8444,100



000s



000s



Direct Debit




Terminals in 000sOthersBabbel EZPOS ElectronicVoba KarlsuheGirocashcardprojectEHRICSEuropay ConsultEC Vash DirectACScards and moreLavegoBSBPOS - CashserviceTecopaydisciountPayCoAlpha-CashkulamSystem SoftKALICOMPCSafc/GWKpaytecFirst Cash SolutionECShp weberCCV allcashREA CardHeidelpay/STARTEC2.50.50.50.60.750.7511111.551.61.61.751.751.75222.53467.59910.51215.51616

Terminals in 000s



Sheet2

Quality of earningsBusiness Plan FY19 - FY22

FY 16FY 17FY 18YTD Jul 19FY 18FY19FY20FY21FY22FY23FY24CAGRCAGR

in €kActActActActin €kActPlanPlanPlanPlanPlanPlanPlanPlan

Revenues1,288.51,508.11,203.1645.5Gross profit581.9597.7750.8942.11,108.61,325.71,530.422.9%20.7%

Other expenses479.5390.9369.9390.0490.0609.0625.2- 0.2- 0.1

Reported EBITDA115.9112.499.455.9EBITDA99.4206.8380.8552.1618.6716.7905.244.1%34.4%

Adjusted EBITA219.5219.5197.5164.2# active terminals3.8444.0774.259

Adj EBITA Margin17.0%14.6%16.4%25.4%# TX (in '000)7.0918.1009.500


FY 18FY19FY20FY21

in €kActPlanPlanPlan

Gross profit581.9597.7750.8942.1

Expenses479.5390.9369.9390.0

EBITDA99.4206.8380.8552.1

FY23FY24CAGRCAGR

in €kPlanPlanPlanPlan

Gross profit1,325.71,530.422.9%20.7%

Expenses609.0625.2- 0.2- 0.1

EBITDA716.7905.244.1%34.4%

Sheet3

Sheet1 (2)

000s

Others154

Concardis94

CardProcess105

Worldline/ Six140



000s

Others11.7

Elavon3.6

Wirecard3.6

Worldline/Six6.3


Concardis29.7

Direct DebitDebit

Others10.8020

Concardis1.66.8

Intercard16.013.6




Terminals in 000s

Others2.5

ISO 260.5

ISO 250.5

ISO 240.6

ISO 230.8

ISO 220.8

ISO 211.0

ISO 201.0

ISO 191.0

ISO 181.0

ISO 171.6

ISO 161.6

ISO 151.6

ISO 141.8

ISO 131.8

ISO 121.8

ISO 112

ISO 102.5

ISO 93.0

KALICOM4.0

ISO 88

ISO 79.0

ISO 69.0

ISO 510.5

ISO 412.0

ISO 315.5

ISO 216.0

ISO 116.0

KPIs

201420152016201720182019

Terminals (in #)3,7683,9103,7893,8693,8444,100



000s



000s



Direct Debit




Terminals in 000sOthersISO 26ISO 25ISO 24ISO 23ISO 22ISO 21ISO 20ISO 19ISO 18ISO 17ISO 16ISO 15ISO 14ISO 13ISO 12ISO 11ISO 10ISO 9KALICOMISO 8ISO 7ISO 6ISO 5ISO 4ISO 3ISO 2ISO 12.50.50.50.60.750.7511111.551.61.61.751.751.7522.5347.59910.51215.51616

Terminals in 000s



Sheet1

000s

Others154

Concardis94

CardProcess105

Worldline/ Six140



000s

Others11.7

Elavon3.6

Wirecard3.6

Worldline/Six6.3


Concardis29.7

Direct DebitDebit

Others10.8020

Concardis1.66.8

Intercard16.013.6




Terminals in 000s

Others2.5

Babbel EZ0.5

POS Electronic0.5

Voba Karlsuhe0.6

Girocash0.8

cardproject0.8

EHRICS1.0

Europay Consult1.0

EC Vash Direct1.0

ACS1.0

cards and more1.6

Lavego1.6

BSB1.6

POS - Cashservice1.8

Teco1.8

paydisciount1.8

PayCo2

Alpha-Cash2.0

kulam2.5

System Soft3.0

KALICOM4.0

PCS6

afc/GWK8

paytec9.0

First Cash Solution9.0

ECS10.5

hp weber12.0

CCV allcash15.5

REA Card16.0

Heidelpay/STARTEC16.0

KPIs

201420152016201720182019

Terminals (in #)3,7683,9103,7893,8693,8444,100



000s



000s



Direct Debit




Terminals in 000sOthersBabbel EZPOS ElectronicVoba KarlsuheGirocashcardprojectEHRICSEuropay ConsultEC Vash DirectACScards and moreLavegoBSBPOS - CashserviceTecopaydisciountPayCoAlpha-CashkulamSystem SoftKALICOMPCSafc/GWKpaytecFirst Cash SolutionECShp weberCCV allcashREA CardHeidelpay/STARTEC2.50.50.50.60.750.7511111.551.61.61.751.751.75222.53467.59910.51215.51616

Terminals in 000s



Sheet2

Quality of earningsBusiness Plan FY19 - FY22

FY 16FY 17FY 18YTD Jul 19FY 17FY 18FY19FY21FY22FY23FY24CAGRCAGR

in €kActActActActin €kActActPlanPlanPlanPlanPlanPlanPlan

Revenues1,288.51,508.11,203.1645.5Gross profit1,508.1581.9597.7942.11,108.61,325.71,530.422.9%20.7%

Other expenses1,395.7479.5390.9390.0490.0609.0625.2- 0.2- 0.1

Reported EBITDA115.9112.499.455.9EBITDA112.499.4206.8552.1618.6716.7905.244.1%34.4%

Adjusted EBITA219.5219.5197.5164.2# active terminals3.8444.077

Adj EBITA Margin17.0%14.6%16.4%25.4%# TX (in '000)7.0918.100


FY 17FY 18FY19FY21

in €kActActPlanPlan

Gross profit1,508.1581.9597.7942.1

Expenses1,395.7479.5390.9390.0

EBITDA112.499.4206.8552.1

FY22FY23FY24CAGR

in €kPlanPlanPlanPlan

Gross profit1,108.61,325.71,530.420.7%

Expenses490.0609.0625.2- 0.1

EBITDA618.6716.7905.234.4%

Sheet3

Deal Structure and Terms

Deal Structure• Share Deal• Kalicom Zahlungssysteme

GmbH, a 100% subsidiary of RS2 Holding Europe GmbH acquired Kalicom Zahlungssysteme KG

• Kalicom Zahlungssysteme KG was upon closing by law merged into Kalicom GmbH

Deal Terms• The transaction is classified as

a Class 1 transaction as per listing rules

• Purchase price €2.5m including transaction related cost and fees

• Budgeted one-off cost of €250k for technical integration

Deal Funding

• Bank financing

Thank you.

IVAN_31.01.2020KALICOM-ACQUISITION_ohne AtlasAcquisition of Kalicom Zahlungssysteme KG in the German Market��Slide Number 2German market provides exceptional growth potentialDomestic debit scheme girocard is the leading payment methodSlide Number 5Slide Number 6Slide Number 7Slide Number 8Continued top and bottom line growSlide Number 10Slide Number 11

Documents

RS2 Software p.l.c. COMPANY ANNOUNCEMENTIngenico/BS PAYONE Debit/Direct Debtit Card transactions in EUR billions Debit Direct Debit The German debit card acquiring market comprises