Slide 1: Unaudited Results for the half year ended 30 November 2011
Unaudited Results for the half year ended 30 November 2011
Slide 2: Agenda
<e- BLUE LABEL TeLscoms ; Salient Features Strategy Update Sse Dc << = en os Yee — Wo" - a ae | aieeaeanel Distribution Vogt <a Financial Overview nae > Prospects
Slide 3: Salient Features for the half year ended 30 November 2011
Salient Features for the half year ended 30 November 2011 • Revenue growth 7% to R9,2bn • Gross profit increased 14% to R590m • EBITDA up 47% to R438m - excluding once–off receipt of R79,4m up 20% • Headline earnings up 44% to R277,4m - excluding once-off receipt of R79,4m up 8% • Cash g generated f
Slide 4: South African Distribution
South African Distribution Brett Levy - Joint CEO 4
Slide 5: SA Distribution Operational and Financial Highlights
SA Distribution Operational and Financial Highlights • Revenue growth 7% to R9,1bn - increased volumes • 3 income pillars: - commodity - annuity - interest earned • Electricity commissions received up 37% to R41m • Money transfers platform right–sized to reflect slower growth • GP margins maintained
Slide 6: Prepaid Airtime and Starter-Packs
Prepaid Airtime and Starter-Packs • Revenue growth 7% • Target of 450 000 new connections per month on track • Growth plan with 60 trucks and 100 foot-soldiers • Price increases from MNO’s passed down to distribution channel • Annuity revenue >R20m per month 6
Slide 7: Airtime Revenue per Network – November 2011
Airtime Revenue per Network – November 2011 Cell C Vodacom 10% 53% MTN 34% *the other networks amount to less than 1% Telkom 3% 7
Slide 8: Prepaid Electricity
Prepaid Electricity • Commissions received up 37% to R41m from R30m • Equates to R2,7bn in sales, up from R1.5bn (1/2Yo1/2Y) • Receive up to ~2% on net commissions • Act as agent not principle - only commission earned included in revenue and not face value of sales • Widespread electricity utility a
Slide 9: Prepaid Electricity Revenue Growth
- 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 300,000,000 350,000,000 400,000,000 500,000,000 450 000 000 450,000,000 JUNE JULY AUGUST SEP PTEMBER OCTOBER O NO OVEMBER DECEMBER YE 2009 JJANUARY FE EBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEP PTEMBER OCTOBER O Prepaid Electricity Reven
Slide 10: Other Products and Services
Other Products and Services • Retail outlets • Near Field Communications (NFC) • Media advertising • Spinner p • SupaStakes football • Senda Mobile Merchant • Bill Payments • Electronic Funds Transfers • Financial services • Transport ticketing and solutions • Lotto • Bela international calling card
Slide 11: Shareholder Profile and Free Float
Shareholder Profile and Free Float 11
Slide 12: International Distribution
International Distribution Mark Levy - Joint CEO 12
Slide 13: International Distribution: Operational and Financial Highlights
International Distribution: Operational and Financial Highlights • Accelerating POP roll-out in Mexico • Claims and counter-claims lodged in Multi-Links arbitration and date set down for November 2012 • Ukash redemption values up 89%, volumes up 81% and profit up 1,242% 1 242% • Disposal of 50.1% st
Slide 14: Oxigen Services India
Oxigen Services India • Strategic shift into versatile payment solutions provider continues • Macro view: - Oxigen powering 90% of all mobile banking transactions* transactions - 52% of Indian population is unbanked • Financial inclusion business grows 24%: - domestic remittances (SBI and Yes Bank)
Slide 15: Blue Label Mexico
Blue Label Mexico • Strong distribution capabilities with strategic partner Grupo Bimbo • Rapid roll-out delivering average 2000 POPs per month • Currently >20 000 POPs and growing steadily from 5 000 in May 2011 • Target market of independent shop owners reached thro’ 17,000 truck routes • Share of
Slide 16: Blue Label Technology Segment
Blue Label Technology Segment • Optimising group systems and platforms • Focus on AEON : robustness, availability, scalabilit and skills de scalability development elopment • Significant increase in transaction volumes in calendar year - bulk distribution up 15% - AEON volumes up 100% • Operating ex
Slide 17: Blue Label Mobile Segment
Blue Label Mobile Segment • >5 billion mobile users in world • Ecosystem includes NFC MSC • Mobile M bil services i b business i - mobile banking platform and mobile merchant services Cellfind • WASP, aggregator and LBS Service Provider - miStatement and miPayslip Media • Advertising Mobilitrix • co
Slide 18: Blue Label Media
Blue Label Media > 1 BILLION BULK PRINT TILL ROLL OUTDOOR MEDIA VOUCHERS PER YEAR CAMPAIGNS
Slide 19: Mobilitrix: End to End Solution
Mobilitrix Engage. Motivate. Measure. Mobilitrix: End to End Solution Retail Rewards Coupon – linked to a specific SKU Voucher – discounted value of total basket Virtual Rewards Airtime | Mxit Moola | Competition Entry | Content
Slide 20: Blue Label Solutions Segment
Blue Label Solutions Segment Blue Label Data Solutions • Continues C ti it its excellent ll t performance f • Diversifying product range • Entrenching direct marketing strategies Enterprise Applications • “Your service partner in direct marketing” Velociti • Creative management in difficult market c
Slide 21: Financial Overview
Financial Overview David Rivkind - Financial Director 21 21
Slide 22: Highlights for the six months ended Nov 2011
Highlights for the six months ended – Nov 2011 Revenue Gross Profit EBITDA Increased by 7% Increased by 14% Increased by 47% to to to R9.2 billion R590 million R438 million* NPAT Headline EPS Cash Generation Increased by 41% Increased by 44% R795 million to to accumulated to cash R272 million* 36.74
Slide 23: Income Statement
Income Statement Nov 2011 Nov 2010 Growth % R’000 R’000 R’000 Growth R Revenue 9 249 177 9,249,177 8 643 554 8,643,554 605 623 605,623 7% Gross profit 589,732 518,906 70,826 14% GP margins 6.38% 6.00% 0.38% Oth income Other i * 89 787 89,787 6 769 6,769 83 018 83,018 1 226% Overheads (241,249) (226,
Slide 24: South African Distribution
South African Distribution Nov 2011 Nov 2011 Nov 2010 Growth % R’000 R’000 R’000 R’000 Growth Total group SA Distribution SA Distribution SA Distribution Revenue 9,249,177 9,088,819 8,519,296 569,523 7% Gross profit 589,732 503,402 442,619 60,783 14% Gross profit % 6.38% 5.54% 5.20% EBITDA 438,270 3
Slide 25: Associates
Associates Nov 2011 Nov 2010 Growth % R’000 R’000 R’000 Growth Sh Share off (losses)/profit (l )/ fit from f associates i t (2 120) (2,120) 1 336 1,336 (3 456) (3,456) (259%) - Ukash 2,274 3,308 (1,034) (31%) - Oxigen Services India (4,399) (1,972) (2,427) (123%) - Other Oth 5 - 5 • Ukash * - Growth
Slide 26: Joint Ventures
Joint Ventures Nov 2011 Nov 2010 Growth R’000 R’000 R’000 Share off losses Sh l from f joint j i t ventures t (9,188) (9 188) (5,708) (5 708) (3,480) (3 480) - Blue Label Mexico (8,464) (6,340) (2,124) - Other (724) 632 (1,356) • Blue Label Mexico - The increase in losses were attributable to expans
Slide 27: Income Statement
Income Statement Nov 2011 Nov 2010 Growth % R’000 R’000 R’000 Growth N t profit Net fit from f continuing ti i operations ti 275 005 275,005 185 760 185,760 89 245 89,245 48% Discontinued operation – APS Nigeria (3,102) 6,877 (9,979) (145%) Net profit attributable to equity holders of parent 271,903
Slide 28: Balance Sheet
Balance Sheet Summarised Group Statement of Financial Position as at 30 Nov 2011 31 May 2011 Non- current assets 998,127 851,665 Property, plant and equipment 130,741 139,747 Intangible assets and goodwill (1) 528,074 433,513 Investment in associates and joint ventures (2) 322,854 239,997 Other non-
Slide 29: Cash Flow
Cash Flow Summarised Group Statement of Cash Flows as at 30 Nov 2011 Cash generated b by operations 879 393 879,393 Interest received 31,946 Interest paid (2,939) Taxation paid (113 756) (113,756) Cash flows from operating activities 794,644 Cash flows from investing activities (204,684) Cash flows
Slide 30: Prospects
Prospects • Continued focus on the marketing and distribution of prepaid starter packs is expected to compound existing annuity revenues. • Commissions generated from prepaid electricity sales are expected to continue to increase both organically and through contracts with additional electricity p p
Slide 31: Thank you / Questions & Answers
Thankyou Thank you y Questions & Questions & Answers Answers
Slide 32: Supplementary: Technical Overview
Supplementary: Technical Overview 32
Slide 33: Supplementary: Group Structure
Supplementary: Group Structure Blue Label Blue Label Blue Label Blue Label Blue Label South Africa International Mobile Technology Solutions African Prepaid Activi Deployment Blue Label Distribution Cellfind Datacel Services (72%) Services The Prepaid APS Nigeria Content Connect Transaction Junction
Slide 34: Supplementary: Global Footprint
Supplementary: Global Footprint Two strategies for international expansion: Bricks and Mortar & Technology Offerings Technology offering Austria Belgium Benin Canada China Czech Republic Denmark DRC Estonia Finland France Greece Guinea Bissau Haiti Hungary Ireland Italy Latvia Lesotho Liberia Mozamb
Slide 35: Supplementary: Barriers to Entry
Supplementary: Barriers to Entry • The following natural barriers to entry exist in the environments in which BLT p operates: - The ease of ability to integrate can be hindered by lag times in the negotiation of supplier and customer contracts - Lock out periods for the processing of new technologie
Slide 36: Supplementary: Strategy to Creating Value
Supplementary: Strategy to Creating Value Opportunity Delivery Value Added • Prepaid provides certainty • Robust, scalable and • ~150,000 POPs in SA proprietary technology-AEON • Prepaid is an alternative • Organic growth payment method • Ensure right skills and talent • Dividend yielding • Airtime