Significant Factors Affecting Our Results of Operations and Financial Condition
Impact of Coronavirus Disease 2019 (COVID-19) pandemic

On March 14, 2020, the India Government declared COVID-19 as a “notified disaster” and initiated a nation-
wide lockdown beginning March 25, 2020 for three weeks which was extended to May 31, 2020. The lockdown
was periodically extended to varying degrees by state governments and local administrations. Although ATMs
and cash services were declared as essential services and remained functional throughout the lockdown, the
lockdown, including shutdown of public transportation, hampered our business and field operations.

A second wave of COVID-19 beginning in March 2021 has become more severe and widespread than the first
wave during 2020, with many geographies experiencing shortages of vaccines, hospital beds and oxygen. This
second wave has also resulted in additional lockdowns throughout India. As a result of this second wave of
COVID-19 cases and associated lockdowns, our business and field operations were similarly hampered. As a
result of the lockdowns, a number of our POS merchants, partners and vendors temporarily ceased their
operations.

The COVID-19 pandemic has affected, and may continue to affect, our business, results of operations and
financial condition in a number of ways, such as:

¢ reluctance to use cash in transactions and therefore less withdrawal of cash from ATMs in
general, as a result of significantly reduced movement;

e the reduction in demand for and usage of our cash management services, including especially
our cash pick-up, door-step banking and cash in transit services, as a result of a reduction in the
number of ATM transactions and closure of all major organised retail stores;

e usage overload of certain of our user platforms, applications, servers and other infrastructure
due to increased usage of our digital payments solutions;

e decreased usage of our transit-linked payment solutions, such as FastLane, as a result of
reduced movement and travel;

e decreased usage of our POS-based solutions across our POS network, due to reduced
movement and in-person purchases with our merchants;

e — difficulty in setting up and expanding our POS-based solutions, due to restrictions on venue
capacity and travel;

e adverse effects to our growth rates and on profitability and cash flows, particularly if our
operating expenses do not decrease at the same pace as revenue declines; we may not be able to
decrease our expenses significantly in the short-term and as such would need to suffer delays in
making payments, both internally and externally, or we may choose not to significantly reduce
them in an effort to remain focused on long-term outlook and investment opportunities;

e increased vulnerability to cyber-security threats and potential breaches, including phishing
attacks, malware and impersonation tactics, resulting from the increase in numbers of
individuals working from home;

uncertainty regarding the conditions that must be satisfied before government authorities
completely lift “stay-at-home” orders and further imposition of such orders as a result of the
resurgence of COVID-19 since March 2021;

¢ potential negative impact on the health and safety of our personnel, particularly because a
number of them were and could in future be afflicted by COVID-19, which could result in a

deterioration in our ability to ensure business continuity during this disruption; and

e the rapid shift to remote working and social distancing created inherent operational,
productivity, connectivity and oversight challenges; accordingly, the changed environment

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