Mr Price Group Limited · JSE:MRP
Mr Price — Investor Day (September 2024)
20 slides from Mr Price's investor day presentation, September 2024
Slide 1: Financial Services & Telecoms
By Praneel Nundkumar Financial Services & Telecoms Part 6
Slide 2: Mr Price Money
Mr Price Money OPERATING IN BOTH THE FINANCIAL SERVICES AND TELECOMS SECTORS, WE WORK ON CONVERGING FINTECH AND TELECOMS TO DEVELOP NEW PRODUCTS AND SERVICES ACCESSIBLE TO OUR CUSTOMERS THROUGH SMARTPHONES AND MOBILE DEVICES Value is at the heart of our business and everything we do supports this: F
Slide 3: How Mr Price Money provides value: credit, insurance, value-added services
MR PRICE MONEY PROVIDES VALUE TO CUSTOMERS IN THE FINANCIAL SERVICES SECTOR, COVERING CREDIT, INSURANCE AND VALUE-ADDED SERVICES. How we do it Credit Insurance Value-added services • Access to merchandise • Long-term and short-term insurance • Pre-paid electricity • 6 and 12 months revolving facilit
Slide 4: Credit: South African credit market by product
Credit SA CREDIT MARKET BY PRODUCT SOUTH AFRICAN CREDIT MARKET 2% 15% 25.2 Consumers m 30.96 m Active accounts R 2.23 Trillion debt 8 % 52 % 23 % R43.3 bn R 2.5 bn Clothing retail loans 2% MRPG book 6% of clothing of total credit market retail market Home loans Vehicle loans Credit cards Personal lo
Slide 5: Credit
Credit Credit landscape • Overall credit originations growing YoY • Consumers continue to access credit to fund their immediate needs • View from industry is to maintain a cautionary lending approach Our response • Noted a significant increase in applications - Driven by a younger customer aligned w
Slide 6: Insurance
Insurance Insurance landscape* • Funeral insurance identified as the most important insurance cover (>40% of South African adult population) • Followed by Life and Health Products • Flexibility in benefits and premiums are sought after • Digitisation of insurance products is driving growth Our respo
Slide 7: Value-added services
Value-added services VAS landscape* • VAS market continues to grow - Total monthly transactions: R35bn-R40bn - 9.7m consumers transfer money monthly • Pre-paid electricity commodity talking to consumers’ needs, contributing 7% to VAS marketshare • The convenience factor is critical in driving VAS sa
Slide 8: How we differentiate
How we differentiate Convenience Value Choice Our store card grants accessibility to 6 Mr Price Insiders, first to market Multiple tender types, insurance brands, including insurance billing and rewards program leveraging our MVNO products relevant to the customer’s need valued-added services (VAS)
Slide 9: Our customer
Our customer BLACK FEMALE AGED 36 - 41 YEARS RECENT INCREASE IN YOUNGER ACCOUNT CUSTOMER Avg credit limit Avg credit transaction Approximately R3.8 49 higher 2 sim cards k % vs avg cash transaction per customer 76 % Avg income earned R10 k have other retail accounts 85 % Facebook fans 228 k smartpho
Slide 10: Customer insights
Customer insights • A known credit base of 1.4m customers, segmented into 7 shopping segments using an RFV model (recency, frequency and value) • Overlayed with psychographic traits providing greater understanding of our customers and enabling us to bring them into the heart of our business • Enable
Slide 11: Insiders rewards programme
Insiders rewards programme Why we did it Key highlights in 2024 • 73% of South African consumers belong to a loyalty program • We delivered 1.1m reward moments in FY2024 • Most retailers offer a form of loyalty to customers • 7% additional customers shopped YoY • In 2020 the opportunity presented it
Slide 12: Growth opportunities
Growth opportunities TRANSFORMATION TO A FINTECH MODEL ENABLED BY Financial services Strategic banking modernisation project partnerships Unlocking product development agility supporting model evolution 137
Slide 13: Telecoms: The way we connect
Telecoms The way we connect Our product offering We offer branded cellular and accessory merhchandise, available both online and in-store. Our products are network agnostic, comprising a combination of pre-paid, sim-only and value-added services. • Cellular devices • Cellular devices • Prepaid • Acc
Slide 14: Telecoms: How we differentiate
Telecoms How we differentiate Pricing • Competitive prices – 58% of devices are cheaper than the market’s offerings and 32% of devices are in line with market • Launched our own device – SALT - Price range: R1 499 – R2 999 - 5% contribution to total device sales Experience • Digitised stand-alone st
Slide 15: Telecoms: Our customers
Telecoms Our customers WE CATER TO A DIVERSE CUSTOMER RANGE – ALL WITH AN AFFINITY TO THE GROUP’S BRANDS • Known store card customer • Value-seeking customer • Similar profile to store card customer • Primarily female, aged 40 – 50 years • LSM of 1 – 4 • Anticipate a change in profile range | male c
Slide 16: Telecoms: Our offering and footprint
Telecoms OUR OFFERING • Innovation delivered through our digitised instore experience, offering self-service kiosks and a personalised ‘find your fit’ app • Diversity of choice with devices available across all tender types including Pay Joy • Our own branded device (SALT) targeted to value seeking
Slide 17: Telecoms: Last 3 years
Telecoms Last 3 years Awarded the Vodacom Onbiller of the Year Award Voted Telkom Retailer of the Year (Market Growth) Awarded the Huawei Appreciate Award (Sales) 142
Slide 18: Telecoms: Our offering and footprint
Telecoms Our offering • Follows a similar strategy to Mr Price Cellular - Offering branded cellular and accessory merchandise - Leveraging Power Fashion store footprint Our footprint • Presence in 80 stores - Store-in-stores format - Dedicated associate service model 143
Slide 19: Telecoms: Our impact
Telecoms OUR IMPACT • Our own MVNO - Building brand loyalty through the Mr Price Insiders data reward offering • Over 1.5m sim activations since launch • Positioned as our differentiator through Mr Price Money Insiders 144
Slide 20: Telecoms: Growth opportunities
Telecoms Growth opportunities • Expand footprint • Testing of entry-level SALT devices and • Migrate existing base to Vodacom MVNO - 25 new standalone stores accessories across existing footprint - 10 new store-in-stores • Extend pre-paid device financing to all • Increase SALT device sales contribu