Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — FY2024 Earnings Presentation
38 slides from Blu Label Unlimited's earnings presentation, Aug 29, 2024
Slide 1: Annual results for the year ended 31 May 2024
Annual results for the year ended 31 May 2024
Slide 2: Order of events
INVESTOR PRESENTATION 2024 2 Order of events OPERATING ENVIRONMENT OUR SUBSIDIARIES AND OUTLOOK Challenging operating environment Comm Equipment Company Loadshedding Blue Label Distribution Focused and Consistent Strategy Cigicell Serving the Underserved Blue Label Data Solutions Driving Financial I
Slide 3: Our Operating Environment
INVESTOR PRESENTATION 2024 3 OUR OPERATING ENVIRONMENT Challenging operating High interest rates and Anticipation of at least Impact on consumers was environment. high inflation, which two interest rate cuts profound in terms of the placed both businesses, which did not materialise. cost of living a
Slide 4: Loadshedding
INVESTOR PRESENTATION 2024 4 LOADSHEDDING The first nine months OUTLOOK of our financial year were negatively In 2023 South Africa experienced 6 838 hours of load shedding which We are pleased with the outlook from impacted by loadshedding. accounted for 78% of the available hours in the year. Eskom
Slide 5: Focused and Consistent Strategy
INVESTOR PRESENTATION 2024 5 FOCUSED AND CONSISTENT STRATEGY Our strategy remained largely We continued to invest unchanged. significantly in bolstering our in-house platforms and growing our digital footprint.
Slide 6: Serving the Underserved
INVESTOR PRESENTATION 2024 6 SERVING THE UNDERSERVED Blue Label is a focused, streamlined and diverse business that is anchored in 1. We aim to reach isolated consumers that have been excluded from the formal economy. driving financial inclusion. 2. Many individuals and communities remain underserve
Slide 7: Driving Financial Inclusion
INVESTOR PRESENTATION 2024 7 DRIVING FINANCIAL INCLUSION Our commitment to financial BY PROVIDING WE BELIEVE OUR ONGOING inclusion extends to empowering entrepreneurs with secure and that financial inclusion is not investments in digital distribution SMEs and small-time vendors, who efficient digita
Slide 8: A People Centric Business
INVESTOR PRESENTATION 2024 8 A PEOPLE CENTRIC BUSINESS Our people are at the core of It is our employees that design, develop our business. and build our proprietary platforms, supporting our on-selling of products and services to the market.
Slide 9: A People Centric Business Continued
INVESTOR PRESENTATION 2024 9 A PEOPLE CENTRIC BUSINESS CONTINUED The goal is to ensure that the experience of our inclusive culture is consistent across every employee. This led to the development of our leadership mantra, “As One We Belong,” which represents our commitment to Our focus for the year
Slide 10: Our Purpose, Vision and Mission
INVESTOR PRESENTATION 2024 10 OUR PURPOSE, VISION AND MISSION OUR PURPOSE OUR VISION OUR MISSION Making a difference by connecting people and Driving financial inclusion, opportunities and To be the leading global distributor of supplying a means to earn a living and changing convenience for the tha
Slide 11: Our New Values
INVESTOR PRESENTATION 2024 11 OUR NEW VALUES ACCOUNTABILITY CUSTOMER CENTRICITY As a result of this transparent process, Blue Label established new cornerstone values which we are proud to unveil as: COLLABORATION PARTNERSHIP INCLUSION
Slide 12: Financial Highlights
INVESTOR PRESENTATION 2024 12 FINANCIAL HIGHLIGHTS A snapshot overview of R14.6bn* Blue Label’s performance Revenue of for the year ended 31 May 2024. * On inclusion of the gross amount generated on “PINless top-ups”, prepaid electricity, ticketing and universal vouchers, the effective increase equa
Slide 13: Comm Equipment Company
INVESTOR PRESENTATION 2024 13 COMM EQUIPMENT COMPANY CEC experienced a In early 2023, CEC became • This process provided it with challenging year in what aware of increased credit significant insights into its was a difficult credit defaults in the market, which customers’ behaviour patterns environ
Slide 14: Comm Equipment Company Continued
INVESTOR PRESENTATION 2024 14 Postpaid subscriber base Acquisitions Increased pressure on Renewals consumers Total Subscribers 30000 950000 900000 COMM EQUIPMENT 25000 840k 850000 20000 800000 COMPANY CONTINUED 15000 750000 700000 10000 650000 600000 5000 550000 0 500000 Acquisitions Renewals Total
Slide 15: Blue Label Distribution
INVESTOR PRESENTATION 2024 15 BLUE LABEL DISTRIBUTION Blue Label Distribution achieved Revenue generated from It has made significant We see further expansion a strong performance during financial Institutions continued strides in executing its cost- opportunities through the white the year under re
Slide 16: Blue Label Distribution Continued
INVESTOR PRESENTATION 2024 16 Revenue by channel (R’million) BLUE LABEL 60,000 R'millions DISTRIBUTION 50,000 40,000 CONTINUED 30,000 20,000 10,000 - Financial Aggregators Retail Retail formal Petro Informal market Other institutions independents convenience stores 2020 2021 2022 2023 2024 Revenue b
Slide 17: Cigicell
INVESTOR PRESENTATION 2024 17 CIGICELL Cigicell remains We have a healthy The environment was a trusted business partner pipeline and continue challenging in the six in local government across to foster great months leading up to the the country. relationships coupled elections, with noticeably with
Slide 18: Cigicell
INVESTOR PRESENTATION 2024 18 CIGICELL Gross electricity revenue (R’million) 4,000,000,000 3,500,000,000 Electricity revenue generated by the 3,000,000,000 Group on behalf of the utilities 2,500,000,000 2,000,000,000 increased by R3.7 billion from R32.4 1,500,000,000 billion to R36.2 billion and net
Slide 19: Blue Label Data Solutions
INVESTOR PRESENTATION 2024 19 BLUE LABEL DATA SOLUTIONS Blue Label Data Solutions We have considerable It is our intention to key strategy is to take ambitions for this business broaden our managed control of the full data to effectively be the most services stable offering to value chain. efficient
Slide 20: Group Technology
INVESTOR PRESENTATION 2024 20 GROUP TECHNOLOGY As a technology company, we appreciate the importance of uptime. Downtime disrupts our customers' operations and can significantly impact their businesses. As such, significant investment has been made by Blue Label to allow for redundancy and high avai
Slide 21: Group Technology Continued
INVESTOR PRESENTATION 2024 21 GROUP TECHNOLOGY CONTINUED During the year we retained high systems stability, resilience, and service levels across all transactional systems and SLAs. Blue Label achieved 99.31% uptime for across all production environments and 100% uptime across all cloud environment
Slide 22: Group Technology Continued
INVESTOR PRESENTATION 2024 22 GROUP TECHNOLOGY CONTINUED Blue Label has developed best-in-class platforms and leveraged these to drive partnership arrangements and grow our product distribution network. In line with this, we have embarked on a recruitment drive for senior critical roles in architect
Slide 23: Strategic Direction and Outlook
INVESTOR PRESENTATION 2024 23 STRATEGIC DIRECTION AND OUTLOOK The focus for Blue Label is on We will continue to focus on We remain committed to execution and leveraging the our growth strategy and the excellence across our data and insights we gather development of the Group’s various subsidiaries.
Slide 24: Thank You
INVESTOR PRESENTATION 2024 24 THANK YOU Thank you to our SHAREHOLDERS MERCHANTS valued stakeholders: BUSINESS PARTNERS SUPPLIERS AND MOST IMPORTANTLY – OUR DEDICATED BLUE LABEL EMPLOYEES FOR THEIR INCREDIBLE COMMITMENT DURING THE YEAR.
Slide 25: Cell C
INVESTOR PRESENTATION 2024 25 CELL C
Slide 26: INVESTOR PRESENTATION 2024
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Slide 27: INVESTOR PRESENTATION 2024
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Slide 28: INVESTOR PRESENTATION 2024
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Slide 29: INVESTOR PRESENTATION 2024
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Slide 30: INVESTOR PRESENTATION 2024
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Slide 31: Financial Highlights
INVESTOR PRESENTATION 2024 31 FINANCIAL HIGHLIGHTS A snapshot overview of R14.6bn* Blue Label’s performance Revenue of for the year ended 31 May 2024. * On inclusion of the gross amount generated on “PINless top-ups”, prepaid electricity, ticketing and universal vouchers, the effective increase equa
Slide 32: Group Income Statement
INVESTOR PRESENTATION 2024 32 GROUP INCOME STATEMENT For the year ended 31 May 2024 Extraneous Extraneous Group income* Remaining Group costs** Remaining Growth Growth May 2024 May 2024 May 2024 May 2023 May 2023 May 2023 remaining remaining R'000 R'000 R'000 R'000 R'000 R'000 R'000 % Revenue 14,598
Slide 33: Extraneous Income
INVESTOR PRESENTATION 2024 33 EXTRANEOUS INCOME For the year ended 31 May 2024 The net positive contributions to Group earnings in the current year were attributable to: Extraneous Recap of income* Cell C (1) • the accounting treatment relating to the recapitalisation transaction of Cell C (1), eman
Slide 34: Extraneous Costs
INVESTOR PRESENTATION 2024 34 EXTRANEOUS COSTS For the year ended 31 May 2024 Extraneous Recap of Once-offs The negative contributions to Group earnings in the prior year were primarily attributable to: costs** Cell C (2) (3) May 2023 May 2023 May 2023 • the accounting treatment relating to the reca
Slide 35: Revenue
INVESTOR PRESENTATION 2024 35 REVENUE For the year ended 31 May 2024 Group Group May 2024 May 2023 Growth Growth R'000 R'000 R'000 % Prepaid airtime, data and related revenue 30,837,897 34,241,009 (3,403,112) (10%) - Prepaid airtime and data 9,078,108 13,009,793 (3,931,685) (30%) - "PINless" airtime
Slide 36: Balance Sheet
INVESTOR PRESENTATION 2024 36 Group Group BALANCE SHEET May 2024 May 2023 R'000 R'000 Non- current assets 5,330,783 5,700,072 Intangible assets and goodwill 2,183,199 2,300,706 Loans to associates and joint ventures 1,967,246 1,913,645 As at 31 May 2024 Advances to customers 485,323 810,252 Other no
Slide 37: Cash Flow
INVESTOR PRESENTATION 2024 37 CASH FLOW For the year ended 31 May 2024 Group Group May 2024 May 2023 R'000 R'000 Cash generated by operations 769,380 202,876 Interest received 199,516 174,039 Interest paid (1,082,619) (663,908) Taxation paid (186,884) (214,850) Cash flows from operating activities (
Slide 38: Normalised Cash Flow Generated from Operating Activities
INVESTOR PRESENTATION 2024 38 NORMALISED CASH FLOW GENERATED FROM OPERATING ACTIVITIES For the year ended 31 May 2024 Group Group May 2024 May 2023 R’000 R’000 Normalised cash generated from operating activities 1,138,745 1,324,954 Additional interest received related to the loan to Cell C for its d
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