Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — FY2014 Earnings Presentation
39 slides from Blu Label Unlimited's earnings presentation, August 2014
Slide 1: Audited results for the year ended 31 May 2014
Audited results for the year ended 31 May 2014
Slide 2: Highlights for the year ended 31 May 2014
Highlights for the year ended 31 May 2014 Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology 6.7 6.96 » HEPS rises 6% to 67.98 cents 5.69 6.04 5.19 » EBITDA up 10% to R788 million percentage » GP margin improves from 6.70% to 6.96% » R
Slide 3: Strategy creates Value
Strategy creates Value Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology OPPORTUNITY DELIVERY VALUE ADDING » Prepaid provides certainty » Robust, scalable, agnostic and » >150,000 POPs in SA proprietary technology platform - » Prepaid
Slide 4: Airtime - Industry trends
Airtime - Industry trends • Landscape is changing • Margin compression • Competitive pricing • The Regulator ICASA • Mobile Termination Rates (MTR’s) • Data and Voice • Significant investment in distribution channels 4
Slide 5: Acquisitions Update
Acquisitions Update Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Via Media (75%) announced 11 August 2014 - unique technology platform - selling content and value adding services - mobile entertainment and information - initial
Slide 6: South African Distribution
South African Distribution Brett Levy – Joint CEO
Slide 7: Operational and Financial Highlights
Operational and Financial Highlights Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Revenue achieved R19.1 billion » Growth in PINless revenue up 71% to R1.7 billion 2014 2013 2012 2011 » Increasing Gross Profit margin 6.18% 5.99
Slide 8: Prepaid Airtime and Starter-Packs
Prepaid Airtime and Starter-Packs Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology Prepaid Airtime Revenue Growth Direct Top Up - PINless Airtime Growth 2 500 200 180 2 000 160 R Millions R Millions 140 1 500 120 100 2014 2014 1 000
Slide 9: Prepaid Airtime and Starter-Packs
Prepaid Airtime and Starter-Packs Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » 61 million prepaid SIM Cards in market » Revenue contribution by market: - informal 85% - formal 15% » Investing in SA distribution channel: - truck
Slide 10: Retail Mobile Credit Solutions
Retail Mobile Credit Solutions Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Integration into The Post Paid Company completed » Delivery 24/7 through virtual platform ‘Over the Air’ » Products include hybrid contracts, airtime,
Slide 11: Rand value of outgoing Prepaid Airtime Sales per Network
Rand value of outgoing Prepaid Airtime Sales per Network Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology December 2013 - May 2014 June - November 2013 Cell C Cell C 19% 17% Vodacom 50% Vodacom 50% MTN 32% MTN 29% Telkom 1% Telkom 2%
Slide 12: Prepaid Electricity
Prepaid Electricity Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Exponential growth continues: - increasing number of distributor contracts with municipalities, - increasing uptake by consumers installing prepaid residential me
Slide 13: Prepaid Electricity – Revenue and UniPIN 2014
Prepaid Electricity – Revenue and UniPIN 2014 Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology Electricity sales on behalf of utilities 1 000 Millions 900 800 700 600 500 400 2013 FY 2013 300 FY 2014 2014 200 FY 2015 2015 100 - UniPI
Slide 14: Ticketing and Financial Services – new categories of product
Ticketing and Financial Services – new categories of product Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Ticketing by ticketpro - transport and events - sport, entertainment, lifestyle and expo’s - convenience of NFC, card, ho
Slide 15: New Products and Services
New Products and Services Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Internet of Things and Internet of Everything → SIM Cards for: - smart houses, light switches, security devices, motor cars - embedded and wearable things »
Slide 16: Shareholder profile
Shareholder profile Beneficial Shareholders Free Float Free Float 55% Strategic Holders 43% Below Threshold 2% South Africa 83% USA 7% UK & Europe 8% Rest of World 2% 16
Slide 17: International Distribution
International Distribution Mobile, Solutions and Technology Prospects Mark Levy – Joint CEO
Slide 18: Overview
Overview Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » International strategy replicates SA business model » Multi-Links case heading to High Court » Investing in our distribution network » Further catalysts for growth in Mexico
Slide 19: Ukash
Ukash Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Available through 460,000 POP’s in 57 countries on 6 continents » Diversifying into new products - Money Transfer with Moneygram®, Ukash Prepaid Mastercard®, Ukash Travel Money
Slide 20: Oxigen Services India
Oxigen Services India Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Financial inclusion for un-banked and rural communities » Building distribution network, including cash-out infrastructure » Correspondent (Kiosk) Banking under
Slide 21: Blue Label Mexico
Blue Label Mexico Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Revenue up 43% » Card acquiring launched with Visa and Banamex - ‘Red Qiubo’ brand » Product and services pipeline includes food vouchers, welfare and benefit payme
Slide 22: Mobile Segment
Mobile Segment Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Products and services for mobile phones » Cellfind - SMS and LBS services - ~200 million SMS’s processed per month - double opt-in effect neutral - LBS growth – local
Slide 23: Solutions Segment
Solutions Segment Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Contact centre marketing and data & analytical support » Velociti - contact centres - contact centre business remains challenging - focus on cost reductions and new
Slide 24: Technology
Technology Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » Proprietary AEON, AMS and Postilion platforms entrench neutral aggregation » Platforms stable as transaction volumes increase: >400 million per month ~4 million online per
Slide 25: Prospects
Prospects Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology » RMCS and Via Media acquisitions will enhance profitability and afford new distribution channels for Group products and services » Positive cash flows will facilitate acquis
Slide 26: Financial Overview
Financial Overview Dean Suntup – Financial Director
Slide 27: Highlights
Highlights Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology Revenue Gross Profit EBITDA Headline Increased by 2% Increased by Increased by Earnings to R19.4 billion R78 million 10% to Increased by 6% (margins from 6.70% to R788 milli
Slide 28: Income Statement
Income Statement Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2013 Growth % R’000 R’000 R’000 Growth Revenue 19,401,666 18,984,210 417,456 2% Gross profit 1,349,534 1,271,245 78,289 6% GP margins 6.96% 6.70% 0.26% Othe
Slide 29: South African Distribution
South African Distribution Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2014 FY 2013 Growth % R’000 R’000 R’000 R’000 Growth Total group SA Distribution SA Distribution SA Distribution Revenue 19,401,666 19,103,652 18,
Slide 30: Income Statement
Income Statement Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2013 Growth % R’000 R’000 R’000 Growth Revenue 19,401,666 18,984,210 417,456 2% Gross profit 1,349,534 1,271,245 78,289 6% GP margins 6.96% 6.70% 0.26% Othe
Slide 31: Associates
Associates Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2013 Growth % R’000 R’000 R’000 Growth Share of profits/(losses) from associates 8,448 6,726 1,722 26% - Ukash 14,089 7,291 6,798 93% - Oxigen Services India (3,2
Slide 32: Income Statement
Income Statement Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2013 Growth % R’000 R’000 R’000 Growth Revenue 19,401,666 18,984,210 417,456 2% Gross profit 1,349,534 1,271,245 78,289 6% GP margins 6.96% 6.70% 0.26% Othe
Slide 33: Joint Ventures
Joint Ventures Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2013 Growth R’000 R’000 R’000 Share of losses from joint ventures (65,321) (54,052) (11,269) - Blue Label Mexico (60,844) (51,124) (9,720) - Other (4,477) (2,
Slide 34: Income Statement
Income Statement Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2013 Growth % R’000 R’000 R’000 Growth Revenue 19,401,666 18,984,210 417,456 2% Gross profit 1,349,534 1,271,245 78,289 6% GP margins 6.96% 6.70% 0.26% Othe
Slide 35: Income Statement
Income Statement Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology FY 2014 FY 2013 Growth % R’000 R’000 R’000 Growth Headline earnings 450,889 424,506 26,383 6% Net headline earnings adjustments (659) 335 (994) (297%) Net profit attri
Slide 36: Balance Sheet
Balance Sheet Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology Summarised Group Statement of Financial Position as at 31 May FY 2014 FY 2013 R’000 R’000 Non- current assets 1,798,307 1,340,410 Property, plant and equipment 97,200 88,
Slide 37: Cash Flow
Cash Flow Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology Summarised Group Statement of Cash Flows FY 2014 FY 2013 as at 31 May R’000 R’000 Investing Activities Cash generated by operations 1,129,008 (257,384) Interest received 24,6
Slide 38: Dividend of 27 cents, cover of 2.48 times
Dividend Mobile, Solutions Highlights Strategy Acquisitions SA Distribution International Prospects Financial and Technology Dividend of 27 cents per share declared Cover of 2.48 times 38
Slide 39: Thank You
<>» BLUE LABEL TELECOMS Thank You August 2014
Blu Label Unlimited Group — FY2014 Earnings Presentation on 6ix