Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — H1 FY2023 Earnings Presentation
37 slides from Blu Label Unlimited's earnings presentation, January 2023
Slide 1: Interim Annual Results
INTERIM ANNUAL Unaudited results for the six months ended 30 Nov 2022 RESULTS Audited results for the year ended 31 May 2022
Slide 2: Welcome
WELCOME Proud of our performance during a globally and locally difficult and uncertain period. GROSS GROSS REVENUE PROFIT 9% 13% Learn More 2 UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 NOV 2022
Slide 3: Financial Highlights and Salient Features
FINANCIAL HIGHLIGHTS AND SALIENT FEATURES For the six months ended 30 November 2022 REVENUE * GROSS PROFIT GROSS PROFIT MARGIN R9.8bn R1.54bn 15.67% (2021: R9.1bn) (2021: R1.36bn) (2021: 14.93%) Imputed Revenue up 9% An increase of 13% * On inclusion of the gross amount generated on ** “PINless top-
Slide 4: Revenue Generated
REVENUE GENERATED 4% 7% 58% 152% P INLE S S TOP - UP S E LE C TR IC ITY R E VE NUE GR OSS GAMING GR OSS TIC KE TING R E VE NUE R E VE NUE 4 UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 NOV 2022
Slide 5: EBITDA (Normalised)
EBITDA 800 +15% 700 (Normalised) 600 500 R'millions On exclusions of extraneous costs in 400 the current and prior period, including 300 those related to the recapitalisation of 200 Cell C, EBITDA increased by 15%. 100 - 2020 2021 2022 5 UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 NOV 2022
Slide 6: Product Performance
PRODUCT PERFORMANCE 18 000 R'millions 16 000 14 000 12 000 10 000 8 000 6 000 4 000 2 000 - Airtime offline Airtime online Electricity Gaming Ticketing Other 2020 2021 2022 6 UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 NOV 2022
Slide 7: Channel Performance
CHANNEL PERFORMANCE 25 000 R'millions 20 000 15 000 10 000 5 000 - Financial institutions Aggregators Retail independents Retail formal Petro convenience Informal market Other stores 2020 2021 2022 7 UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 NOV 2022
Slide 8: Growth
• Leverage distribution network for seamless GROWTH access to online and digital partners • Cash consumers transact digitally in a safe and 351% convenient way • New ‘emergency top-up’ offering to merchants 8 UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 NOV 2022
Slide 9: The Informal Market
THE INFORMAL MARKET 19% Continue to retain and grow merchants, and consistent growth in trader base 16% Trade on VAS, entertainment and lifestyle products continues to increase annually Our commitment to financial inclusion and the informal market remains our driving motivation. 9 UNAUDITED RESULTS
Slide 10: Comm Equipment Company
COMM EQUIPMENT COMPANY CEC is a major contributor to the Group’s revenue as they continue to grow both gross profit and net profit after tax. +57% GP Renewals Churn Acquisitions 30000 25000 20.0% 25000 2.50% 25000 20000 16.0% 20000 2.00% 20000 15000 12.0% 15000 1.50% 15000 10000 8.0% 10000 1.00% 100
Slide 11: Postpaid Subscriber Base Is Growing
POSTPAID SUBSCRIBER BASE IS GROWING Total subscriber count 900 000 2.00% 889 097 890 000 884 615 879 894 1.00% 878 342 880 000 874 742 868 498 869 353 870 000 865 070 866 024 0.00% 862 211 861 296 861 471 860 000 -1.00% 850 000 840 000 -2.00% Jan '22 Feb '22 Mar '22 Apr '22 May '22 Jun '22 Jul '22 A
Slide 12: Stabilisation and Growth Focus
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 NOV 2022 12 STABILISATION AND GROWTH FOCUS RECAPITALISATION NETWORK MIGRATION PREPAID FOCUSED MVNO AND ACCELERATION STABILISATION INVESTMENT DIGITAL GROWTH • Recapitalization finalized • Full network migration • Negatively affected by • Replacement proje
Slide 13: A Culture of Innovation
A CULTURE OF INNOVATION We continuously evolve in order to anticipate and adapt to changing consumer needs: • Innovation, data, technology and digitisation • New and diverse skills • Customer-centricity • Market-accretive inhouse products • Improved offerings • Expanded distribution network BluVouch
Slide 14: The Journey
THE JOURNEY Increasing shareholder value and returns Building our brand equity and market reputation Realising greater efficiencies/optimisations 04 Unlocking opportunity 03 for profitable growth 02 14 U N A U D I T E D R E S U L T S F O R T H E S I X M O N T H S E N D E D 3 0 N O V 2 0 2 2 UNAUDITE
Slide 15: How We Are Doing This
HOW WE ARE DOING THIS TECHNOLOGY PEOPLE PROCESS Cloud technology Skills development Execution focus Consolidated group data BluNOVA Academy Digitisation of process Data driven decisions Reward performance Repeatability and automation Data monetisation (BluAdvance and AltBureau) Team effectiveness an
Slide 16: A Shift in Approach
A SHIFT IN APPROACH NOW FUTURE A distribution and A digital business VAS company that that orchestrates runs technology distribution and X-tech ecosystems 16 U N A U D I T E D R E S U L T S F O R T H E S I X M O N T H S E N D E D 3 0 N O V 2 0 2 2
Slide 17: Data-Driven Digital Models
DATA-DRIVEN DIGITAL MODELS BluNOVA made significant improvement in data generation and deanonymization with telco, electricity and transport, which enables enhancement of the alternative credit score, income prediction, right party contact and first party data. BluAdvance has showcased the ability t
Slide 18: Credit Operations
CREDIT OPERATIONS Telco alternative lending algorithm has been further enhanced to improve performance across the Cell C postpaid portfolio and has supported the business in acquiring new customers. Deployed substantial effort into the credit operations space which has ultimately improved the profit
Slide 19: Reaching End Consumers
REACHING END CONSUMERS Alternative scoring Ringas dynamic USSD-project and BluAdvance, BluNOVA has enabled other companies in our group to reach end-consumers more effectively and extensively. Leveraging the group’s data Together with the management consulting, technological and analytical skillset
Slide 20: We Continue to Expand Our Footprint
WE CONTINUE TO EXPAND OUR FOOTPRINT 30,4 million Credible opt-in database 2019 2020 2021 2022 150k leads On average per month supplied to 24 different call centres, across multiple products and clients 20 U N A U D I T E D R E S U L T S F O R T H E S I X M O N T H S E N D E D 3 0 N O V 2 0 2 2
Slide 21: Ongoing Operational Stability, Governance and Cyber Security
ONGOING OPERATIONAL STABILITY, GOVERNANCE AND CYBER SECURITY Stability Governance Agile Implementation Good progress with the Combined uptime of 99.5% Formalised implementation of implementation of the agile across all transactional and the IT governance, controls and framework, including the roles
Slide 22: Digital Business Advancement & Core Platforms Transformation
DIGITAL BUSINESS ADVANCEMENT & CORE PLATFORMS TRANSFORMATION Digital Transformation Automation Re-platform Transformation Progressing well with digital Good progress on the robotic Platforms will leverage new hybrid transformation plans. Approach has process automation cloud backbone and centralised
Slide 23: Cigicell
CIGICELL Electricity Face Value Sales R 16 bn R 17 bn Half year figures (Jun - Nov) +7% R3 500.00 R'Millions 18 000 +18% R'millions linear R3 000.00 16 000 14 000 R2 500.00 12 000 R2 000.00 10 000 8 000 R1 500.00 6 000 R1 000.00 4 000 R500.00 2 000 0 R- FY2023 FY2018 FY2019 FY2020 FY2021 FY2022 Jul-
Slide 24: Growth slowed by loadshedding, still good financial position
• Growth slowed by loadshedding, but still in good financial position • Continue to invest resources and time • Continue signing up new municipalities • Confident in our offering and expertise 24 U N A U D I T E D R E S U L T S F O R T H E S I X M O N T H S E N D E D 3 0 N O V 2 0 2 2 UNAUDITED RESU
Slide 25: Reware and Unipay metering growth
Reware continues to demonstrate Unipay is evolving the platform to growth in the private, commercial allow increased functionality and and industrial metering space an extended client base 25 U N A U D I T E D R E S U L T S F O R T H E S I X M O N T H S E N D E D 3 0 N O V 2 0 2 2
Slide 26: Exceeding Targets
EXCEEDING TARGETS Continued focus on digitisation • Including shifts to cloud computing, automation and improved retail product offerings, has enabled greater flexibility for improved market penetration. Strong growth in the mid-market retail tier • With 26% merchant acquisition, driven by strong re
Slide 27: Growth
GROWTH Investments in and improvements to the platform continue to show strong results • Growth in acceptance by large multinational retailers to facilitate their digital strategies • Strong participation from leading international card networks underscores their faith in technology and strategic di
Slide 28: Financial Results
FINANCIAL RESULTS bluelabeltelecoms.co.za
Slide 29: Financial Highlights and Salient Features
FINANCIAL HIGHLIGHTS AND SALIENT FEATURES For the six months ended 30 November 2022 REVENUE * GROSS PROFIT GROSS PROFIT MARGIN R9.8bn R1.54bn 15.67% (2021: R9.1bn) (2021: R1.36bn) (2021: 14.93%) Imputed Revenue up 9% An increase of 13% * On inclusion of the gross amount generated on ** “PINless top-
Slide 30: Group Income Statement
GROUP INCOME STATEMENT For the six months ended 30 November 2022 Extraneous Extraneous Group costs* Remaining Group income** Remaining Growth Growth Notes Nov 2022 Nov 2022 Nov 2022 Nov 2021 Nov 2021 Nov 2021 remaining remaining R'000 R'000 R'000 R'000 R'000 R'000 R'000 % Revenue 9,823,143 - 9,823,1
Slide 31: Extraneous Costs
EXTRANEOUS COSTS For the six months ended 30 November 2022 Extraneous Recap of costs* Cell C (1) (2) Once-offs Notes Nov 2022 Nov 2022 Nov 2022 R'000 R'000 R'000 * The extraneous contributions to Group earnings in the current year were primarily Other income - - - attributable to: Bad debts, expecte
Slide 32: Extraneous Income
EXTRANEOUS INCOME For the six months ended 30 November 2021 Extraneous (3) (4) income** Once-offs WiConnect Notes Nov 2021 Nov 2021 Nov 2021 R'000 R'000 R'000 ** The extraneous contributions to Group earnings in Gross Profit - the prior period were attributable to: Other income 315 132 315 132 - EBI
Slide 33: Revenue
REVENUE For the six months ended 30 November 2022 Group Group Nov 2022 Nov 2021 Growth Growth R'000 R'000 R'000 % Notes Prepaid airtime, data and related revenue 17 571 497 17 870 844 (299 347) (2%) Group revenue increased by R710 million (8%) to - Prepaid airtime and data 6 873 196 7 595 115 (721 9
Slide 34: Balance Sheet
BALANCE SHEET As at 30 November 2022 Group Group Nov 2022 Nov 2021 Notes R'000 R'000 The increase of R1.9 billion in loans to associates and joint ventures primarily related to the Non-current assets 5,558,208 3,499,479 recapitalisation of Cell C and comprised the following: Property, plant and equi
Slide 35: Cash Flow
CASH FLOW For the six months ended 30 November 2022 Group Group Nov 2022 Nov 2021 Notes R'000 R'000 Cash utilised in trading operations totalled R155 Cash generated by operations (154 649) 953 746 million. Working capital movements comprised an Interest received 77 080 35 542 increase in inventory o
Slide 36: Normalised Cash Generated from Operations
NORMALISED CASH GENERATED FROM OPERATIONS For the six months ended 30 November 2022 Group Group Nov 2022 Nov 2021 R’000 R’000 Cash (utilised in)/generated from operating activities (394,158) 861,787 Additional interest received (25,571) - Additional interest paid 85,140 - Restricted stock acquired 1
Slide 37: Thank You
THANK YOU bluelabeltelecoms.co.za HEAD OFFICE POSTAL ADDRESS CONTACT 75 Grayston Drive P.O. Box 652261 +27 (0)11 523 3030 Sandton, Johannesburg Benmore info@blts.co.za South Africa 2010 investors@blts.co.za
Blu Label Unlimited Group — H1 FY2023 Earnings Presentation on 6ix