Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — H1 2013 Earnings Presentation
37 slides from Blu Label Unlimited's earnings presentation, 2013
Slide 1: Unaudited Results for the half year ended 30 November 2012
Highlights South African Distribution International Distribution Technology, Mobile and Solutions Prospects Financial Review Unaudited Results for the half year ended 30 November 2012 1
Slide 2: Highlights for the half year ended 30 November 2012
Highlights for the half year ended 30 November 2012 Revenue increased to R9.5 billion Gross profit up to R644 million HEPS up 26% to 34.78 cents* R566 million cash generated from operations: - before bulk inventory purchases of R1.5 billion Partnerships key in delivering growth: - SA mobil
Slide 3: South African Distribution
DISTRIBUTION <@> te | BLUE LABEL TELECOMS South African Distribution Brett Levy — Joint CEO
Slide 4: Operational and Financial Highlights
Operational and Financial Highlights Revenue up 2% to R9.3 billion Increasing trend to act as agent on airtime sales PINless sales of R411 million Electricity commissions received up 29% to R53 million GP Margins increase: - trend to PINless purchases for airtime and electricity - starter
Slide 5: Airtime Revenue Growth
Airtime Revenue Growth 2012 2011 R 2 100 R 2 100 Millions Millions Millions Millions R 1 900 R 1 900 R 1 700 R 1 700 R 1 500 R 1 500 R 1 300 R 1 300 R 1 100 R 1 100 R 900 R 900 R 700 R 700 R 500 R 500 5
Slide 6: PINless Airtime Growth 2012
PINless Airtime Growth 2012 R 120 Millions Millions R 100 R 80 R 60 R 40 R 20 R0 6
Slide 7: Prepaid Airtime and Starter Packs
Prepaid Airtime and Starter Packs Revenue growth organic and volume related New connections at ~450 000/month Blu Approved footprint expands Formal urban blue-chip channel augmented Informal ‘spaza’ channel reaches deeper into rural areas: - community based starter packs and own brand SIM
Slide 8: Prepaid Airtime - Revenue Growth Per Network
Prepaid Airtime - Revenue Growth Per Network 30 Nov 2012 Cell C 31 May 2012 10% Vodacom MTN 51% 37% Telkom 2% 8
Slide 9: Prepaid Electricity
Prepaid Electricity Commissions earned up 29% from R41 million to R53 million Equates to R3.5 billion in utility sales up from R2.7 billion Act as agent not principle:– only commission earned included in revenue and not face value of sales Drivers are widespread endorsement from: - electrici
Slide 10: Prepaid Electricity – Revenue Growth
Prepaid Electricity – Revenue Growth Electricity Sales (face value) 700 600 R Millions 500 400 300 200 100 10
Slide 11: Prepaid Electricity - UniPIN Redemptions
Prepaid Electricity - UniPIN Redemptions 60 50 R Millions 40 30 20 10 11
Slide 12: Market and Footprint
Market and Footprint Enablement of products and services within distribution footprint. Starter Core Products Airtime Electricity Data Packs Corporate Ticketing Events Transport Sports Travel Formal Retail FICA Prepaid Financial Bill Money Registra- Debit Services Payments Transfer tions Cards Infor
Slide 13: New Products and Services
New Products and Services Multitude of products and services in pipeline Financial Services: - wallets, mobile banking, money transfers, remittances, bill payments, EFT, NFC, Senda Mobile Merchant Digital Couponing: - reward cards and loyalty programmes 13
Slide 14: Shareholder Profile
Shareholder Profile Rest of World 3% UK and Europe 7% USA 8% Free Float 54% Strategic Holders 43% Below Threshold 3% 14
Slide 15: International Distribution
NES <@ BEwEseaSsee TELECOMS AX crupo ws BIMBO oxigen International Distribution Mark Levy — Joint CEO 15
Slide 16: Operational and Financial Highlights
Operational and Financial Highlights POS roll-out in Mexico progresses Stake in Blue Label Mexico increased from 40% to 45% Strategy of versatile payment solutions provider in India gaining momentum through partnerships and rural reach Arbitration proceedings in Multi-Links case postponed
Slide 17: Oxigen Services India
Oxigen Services India Y BLUE LABEL GS iGatlicHTs ») @stAcistris Nin ANOBILEIS SOLUTIONS) (@@llpRoSsrecTS: ™) GGEEEINANICIAL ») Qe uve tite Non-stor @xigen.
Slide 18: Oxigen Services India
Oxigen Services India Rural reach as versatile payment solutions accelerate Currently ~130 000 in total market of 400 000 POP devices Share of loss R2.5 million: - revenue increases 16% - recruitment and training of 200 foot soldiers - replace 10 500 terminals - migrated to OxiSecure transacti
Slide 19: Blue Label Mexico
Blue Label Mexico Y BLUE LABEL TELECOMS
Slide 20: Blue Label Mexico
Blue Label Mexico Rapid roll-out delivering ~6000 POS/month Currently >50 000 in total market of 450 000 POS devices Sophisticated terminals – NFC, EMV, smart and magnetic strip enabled Share of loss R23 million while building strong distribution capability: - recruiting for rapid roll-out -
Slide 21: Technology, Mobile and Solutions Segments
<e BeEweE eaSbeELe TELECOMS Technology, Mobile and Solutions Segments Mark Levy — Joint CEO 21
Slide 22: Technology Segment
Technology Segment Proprietary AEON, AMS and banking grade Postilion platforms ensure neutral aggregator capability Increasing volumes: - 2.5 million to 3 million online transactions/day - rising to 6 million transactions/day when including PINless - 400 million transactions/month - 80 million b
Slide 23: Mobile Segment
Mobile Segment Provides a complete Ecosystem for mobile phone users Mobile Services Company: - Mobile services business, media advertising, mobile banking platform and mobile merchant services Blue Label One and Blue Label Engage: - reward cards and loyalty programmes, supporter cards, ticketi
Slide 24: Solutions Segment
Solutions Segment Blue Label Data Solutions - entrenching direct- and tele-marketing strategies with data and analytical support services - excellent growth rate continues - diversifying product range - POPI bill Velociti Call Centre - difficult market conditions - call centre expertise right-si
Slide 25: Prospects
Prospects Innovative financial services products to be launched Loyalty programme initiatives generating revenue Intelligent SMS aggregation and distribution to gain further momentum Increased consumer awareness of the benefits of prepaid electricity to impact favourably on commissions earne
Slide 26: Financial Overview
<e- BEwEseaSsee TELECOMS Financial Overview David Rivkind — Financial Director 26
Slide 27: Income Statement
Income Statement Headline EPS Revenue Gross Profit Increased by 26% Increased to Increased by 9% to R9.5 billion to 34.78 cents* R644 million GP Margins Cash flows R566m Capital and from operations Increased from reserves 6.38% to Movement in (R1 289m) R3 billion 6.80% inventories Cash flows from (R
Slide 28: Income Statement
Income Statement Nov 2012 Nov 2011 Growth % R’000 R’000 R’000 Growth Revenue 9,466,174 9,249,177 216,997 2% Gross profit 643,738 589,732 54,006 9% GP margins 6.80% 6.38% 0.42% Other income 4,498 10,387 (5,889) (57%) Overheads (274,003) (241,192) (32,811) (14%) EBITDA 374,233 358,927 15,306 4% Deprec
Slide 29: South African Distribution
South African Distribution Nov 2012 Nov 2012 Nov 2011 Growth % R’000 R’000 R’000 R’000 Growth Total group SA Distribution SA Distribution SA Distribution Revenue 9,466,174 9,313,904 9,088,819 225,085 2% Gross profit 643,738 558,344 503,402 54,942 11% Gross profit margins 6.80% 5.99% 5.54% EBITDA 374
Slide 30: Income Statement
Income Statement Nov 2012 Nov 2011 Growth % R’000 R’000 R’000 Growth Revenue 9,466,174 9,249,177 216,997 2% Gross profit 643,738 589,732 54,006 9% GP margins 6.80% 6.38% 0.42% Other income 4,498 10,387 (5,889) (57%) Overheads (274,003) (241,192) (32,811) (14%) EBITDA 374,233 358,927 15,306 4% Deprec
Slide 31: Associates
Associates Nov 2012 Nov 2011 Growth % R’000 R’000 R’000 Growth Share of profit/(losses) from associates 1,907 (2,125) 4,032 190% - Ukash 4,362 2,274 2,088 92% - Oxigen Services India (2,455) (4,399) 1,944 44% • Ukash * - Revenues increased by 28% - Gross profit increased by 35% - EBITDA increased by
Slide 32: Income Statement
Income Statement Nov 2012 Nov 2011 Growth % R’000 R’000 R’000 Growth Revenue 9,466,174 9,249,177 216,997 2% Gross profit 643,738 589,732 54,006 9% GP margins 6.80% 6.38% 0.42% Other income 4,498 10,387 (5,889) (57%) Overheads (274,003) (241,192) (32,811) (14%) EBITDA 374,233 358,927 15,306 4% Deprec
Slide 33: Joint Ventures
Joint Ventures Nov 2012 Nov 2011 Growth R’000 R’000 R’000 Share of losses from joint ventures (24,892) (9,183) (15,709) - Blue Label Mexico (22,894) (8,464) (14,430) - Other (1,998) (719) (1,279) • Blue Label Mexico - Increased shareholding from 40% to 45% - Increase in overheads due to an aggressiv
Slide 34: Income Statement
Income Statement FY 2012 FY 2011 Growth % R’000 R’000 R’000 Growth Headline earnings from continuing operations 230,094 212,193 17,901 8% Discontinued operation – APS Nigeria - (3,102) 3,102 100% Headline earnings before comparative once-off other income 230,094 209,091 21,003 10% Once-off other inc
Slide 35: Balance Sheet
Balance Sheet Summarised Group Statement of Financial Position as at 30 Nov 2012 31 May 2012 Non- current assets 1,060,927 993,076 Property, plant and equipment 99,094 112,188 Intangible assets and goodwill 483,604 505,698 Investment in associates and joint ventures 462,185 357,471 Other non-current
Slide 36: Cash Flow
Cash Flow Summarised Group Statement of Cash Flows as at 30 Nov 2012 30 Nov 2011 Cash generated by operations (629,245) 879,393 Interest received 26,286 31,946 Interest paid (8,108) (2,939) Taxation paid (112,051) (113,756) Cash flows from operating activities * (723,118) 794,644 Cash flows from inv
Slide 37: Thank you
<& SBEewEeseaSbee TELECOMS Thank you Questions and Answers 37
Blu Label Unlimited Group — H1 2013 Earnings Presentation on 6ix