Tingo Group, Inc.

Greetings and welcome to the Tango Group second quarter 2023 financial results conference call. All participants are in the listen-only mode. As a reminder, this conference is being recorded. Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include forecasts, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, They are not guarantees and are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions. You should also review our most recent Form 10-Q filed today and Form 10-K for a more complete discussion of these factors and other risks, particularly under the heading Risk Factors. A press release detailing these results crossed the wire this morning at 7.15 a.m. Eastern Time and is available in the Investor Relations section of our company's website, TingoGroup.com. Your hosts today, Darren Mercer, Tingo Group's Chief Executive Officer, Juzi Mabuzi, Tingo Mobile and Tingo Foods founder and CEO, and Kevin Chen, Tingo Group Chief Financial Officer, will present results of operations for the quarter ended June 30th, 2023. At this time, I'll turn the call over to Tingo Group Chief Executive Officer, Darren Mercer. Please go ahead.

Thank you, Operator, and good morning, everybody. I am pleased to welcome you to today's second quarter 2023 financial results conference call. Despite the challenges we have encountered over the past few months, namely the short seller attack in June, the significant devaluation of Nigeria's currency following the lifting of certain foreign exchange restrictions, a period of economic stagnation in Nigeria following the government elections in February of 2023, and subsequently changed with presidential administrations in May, I am delighted with our progress and achievements over the past three months and extremely excited about our prospects for the remainder of the year and beyond. For those of you joining us for the first time, I would like to take a moment to introduce Tingo Group. Tingo Group is a diverse FinTech and agri-FinTech group of companies with operations in Africa, Southeast Asia, and the Middle East. we significantly expanded and somewhat transformed the company when we acquired 100% of Tingo Mobile Limited on November the 30th of 2022 and then acquired Tingo Foods PLC on February 7th of 2023 before subsequently changing our name to Tingo Group Inc. on February 27th of 2023. As of today, the Tingo Group is comprised of the following businesses. Tingo Mobile, which is a leading fintech and agri-fintech business in Africa that operates through a device-as-a-service and smartphone USSD platform model. Tingo Foods, which off-takes crops from the Tingo Mobile substantial and growing customer base of farmers and processes those crops into finished food and beverage products. Tingo DMCC, which operates a commodity trading platform and export business from the Dubai Multi-Commodity Center and deals in both raw agricultural commodities from our Tingo mobile farmers and finished food products and Tingo foods. Tingo Pay, which has developed and recently began to operate a beta version of the Tingo Pay Super App, supported by our Pan-Africa partnership with Visa. The full version of Tingo Pay which will be rolled out later this year, provides payment services, an e-wallet, and a range of value-added services to customers. Tingo Pay in partnership with Visa also offers a range of merchant services to businesses. We also have a number of FinTech verticals that have today been focused on the Southeast Asia market. Within the past few months, however, As we focus on maximizing shareholder value and leveraging the most profitable and valued parts of the Tingo Group, we are currently restructuring this part of the business and winding down or disposing of any operations that do not achieve our target contribution metrics. Our group of businesses and synergistic ecosystem they create places us in a remarkable position from which we can expand both in our current markets and internationally and deliver significant further growth. Despite the challenges I mentioned earlier, which we believe are temporary and short-term issues that will ultimately benefit the company in the long term, we achieved quarter-over-quarter revenue growth in the second quarter of 14.8%. What is important to note is that this was against the backdrop of a 66.3% devaluation of Nigeria's currency during the second quarter. and a period of economic stagnation in Nigeria following its government elections and subsequent change in presidential administrations. It is worth noting that a significant devaluation of Nigeria's currency occurred as a result of the Central Bank of Nigeria's removal of foreign exchange restrictions, which we believe will deliver significant long-term benefits to our business, including the acceleration of the dollarization of our business and making our export and commodity trading activities more profitable. Furthermore, once the policies of Nigeria's new government have been fully implemented, we do expect Nigeria's currency to appreciate and its economy to rebound strongly, which should be hugely beneficial to the company and our shareholders. Following the completion of our acquisition of Tingo Mobile on November 30th of 2022, We have been highly profitable and continue to grow strongly since, including through the subsequent acquisition of Tingo Foods and the commencement of export trades through Tingo DMCC. We have also achieved organic growth, including through our partnership with the All Farmers Association of Nigeria and our launch into Ghana. This growth is set to continue following the delivery of 6 million new handsets that we plan to distribute to new Affam customers. Our financial results highlights for the group shown on this slide once again are representative of our strong financial performance since the completion of our acquisition of Tingo Mobile on November 30th of 2022 and our subsequent acquisition of Tingo Foods. For the quarter ended June 30th of 2023, the company generated over $977 million in revenue, $346 million in gross profit, $283 million in EBITDA, and nearly $182 million in income before tax. Furthermore, Our high levels of operational cash flow enabled us to invest just under $1 billion in the quarter on purchasing 6 million mobile phone handsets for distribution to new customers and on inventory payments for both Tingo Foods and Tingo DMCC businesses. Slide five, our mission. As mentioned previously, our reason why at Tingo Group is very important to us. And those of you that have listened to or read our presentations will most likely already be aware of our mission statements. For those of you not familiar, our overarching mission at Tingo Group is to foster digital and financial inclusion through our fintech platforms and to drive social and economic upliftment. In our agri-fintech businesses, our mission includes our commitment to make a significant difference in improving global food supply and tackling the world's food security crisis by delivering farmer empowerment, improved crop yields, a reduction in post-harvest losses, and better access to both foreign and domestic markets. At a regional level, we also aim to support Africa and its farmers to achieve sustainable food self-sufficiency, bringing an end to Africa's food insecurity and poverty.

Slide six, acquisition and recent developments.