Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — H1 2021 Earnings Presentation
40 slides from Blu Label Unlimited's earnings presentation, February 2021
Slide 1: Connecting Our World to Yours
CONNECTING OUR WORLD TO YOURS Unaudited results for the six months ended 30 November 2020 B L U E L A B E L TE L E C O MS . C O . Z A
Slide 2: Highlights
01 HIGHLIGHTS bl uel abel tel ecom s . co . z a
Slide 3: Our Key Performance
INTERIM RESULTS, 30 NOV 2020 Gross * OUR KEY Revenue PERFORMANCE R32.4bn • Significant investment made into IT infrastructure, distribution Growth 7% channels, product development and improved customer service. • Cell C recap on track. * Including the gross amounts generated on “PINless top-ups”, pr
Slide 4: Financial Highlights
INTERIM RESULTS, 30 NOV 2020 FINANCIAL HIGHLIGHTS For the six months ended 30 November 2020 REVENUE * GROSS PROFIT GP MARGIN INTEREST- BEARING BORROWINGS R9.6bn R1.14bn 11.87% R2.3bn declined by 3% from increased from reduced from R1.17bn in 2019 10.33% in 2019 R3.6bn in 2019 HEADLINE CORE HEADLINE
Slide 5: Gross Revenue and Gross Profit
INTERIM RESULTS, 30 NOV 2020 GROSS REVENUE G R OS S P R OF I T 1 400 + 7% R'million 35 000 - 3% R'million 1 200 30 000 1 000 25 000 20 000 800 15 000 600 10 000 400 5 000 200 - - Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Gross airtime and data revenue Gross electricity re
Slide 6: Debt & Cash Flow
INTERIM RESULTS, 30 NOV 2020 DEBT & CASH FLOW • Debt levels continue to decrease and despite the 3 500 R'millions adverse economic conditions caused by the Covid-19 3 000 pandemic, the group continues to generate cash. 2 500 2 000 • No dividends have been declared, nor any share 1 500 repurchase con
Slide 7: Covid-19
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Slide 8: Covid-19 The Impact
INTERIM RESULTS, 30 NOV 2020 COVID-19 THE IMPACT • The performance of the Blue Label Group remains resilient in adverse economic environment. • In spite of Covid-19, the Group has continued to deliver essential services, including electricity, airtime, data and other digital services, as well as pro
Slide 9: SA Distribution
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Slide 10: Product Performance
INTERIM RESULTS, 30 NOV 2020 PRODUCT PERFORMANCE • While turnover has increased significantly, margins are under pressure due to extreme price competition given economic conditions. 14 000 R'million • Consumer buying patterns have changed with increased 12 000 migration to online channels. 10 000 •
Slide 11: Adverse Economic Conditions Drive Innovation & Digitisation
INTERIM RESULTS, 30 NOV 2020 ADVERSE ECONOMIC CONDITIONS DRIVE INNOVATION, & DIGITISATION IS FAST TRACKED. 11
Slide 12: Products Launched
INTERIM RESULTS, 30 NOV 2020 PRODUCTS LAUNCHED Successful launch of new products that increase consumer convenience and flexibility. Universal prepaid airtime Single secure prepaid voucher voucher redeemable on allowing consumers to pay, any of the four major deposit and top up their accounts South
Slide 13: Channel Performance
INTERIM RESULTS, 30 NOV 2020 CHANNEL PERFORMANCE • Financial services channel continues to grow strongly, supported by continued migration to online. 18 000 R'million 16 000 • Retail channel remains constrained; VAS and 14 000 financial services products strong. Nov-18 12 000 Nov-19 • Petroleum chan
Slide 14: Informal Market
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Slide 15: The Informal Market
THE INFORMAL We launched Blue Label in the late 90s to MARKET take advantage of the explosive growth in prepaid airtime and to make sure that all South Africans could access this product safely and conveniently. Financial Financial Inclusion inclusion remains our driving philosophy.
Slide 16: Informal Market
INTERIM RESULTS, 30 NOV 2020 INFORMAL MARKET VAS, ticketing and PINned products Foreign traders Securing trading financial services, still dominant in slow to return to licenses has including money transfer this channel market become difficult products remain a magnet for foot traffic Covid-19 has c
Slide 17: Comm Equipment Company
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Slide 18: Comm Equipment Company Debt
INTERIM RESULTS, 30 NOV 2020 COMM EQUIPMENT COMPANY 31 May 2019 31 May 2020 30 Nov 2020 DEBT R1.7bn R716m R806m 18
Slide 19: Comm Equipment Company
COMM EQUIPMENT COMPANY 28 Feb 2021 30 SEP 2021 ZERO R600m DEBT Remain on track to deliver strong growth 65% 100% On track to fully extinguish debt & consolidate in a single Group facility
Slide 20: Key Factors
INTERIM RESULTS, 30 NOV 2020 NOV 2020 Key Factors • Concluded a managed services agreement for the back-office services of the Cell C post-paid subscriber base. • CEC will be leveraging off the Blue Label data analytics division to augment the Cell C data and improve performance of the base. 20
Slide 21: Cigicell
CIGICELL cigicell.co.za <@ BLUE LAREL
Slide 22: Cigicell Gross Revenue
22 R'million - 500 1 000 1 500 2 000 2 500 3 000 Jan-16 Feb-16 Mar-16 INTERIM RESULTS, 30 NOV 2020 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 CIGICELL Nov-16 Dec-16 GROSS REVENUE Jan-17 Feb-17 JAN 2016 – NOV 2020 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-
Slide 23: Cigicell
INTERIM RESULTS, 30 NOV 2020 CIGICELL • Due to Covid-19, working from home has included the • Unipay, an innovative, safe, secure, and trusted 100% need for additional electricity top-ups. free to use online bill presentment and payment platform. • We have seen a change in top-up behaviour. • Revenu
Slide 24: Blue Label Data Solutions
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Slide 25: Blue Label Data Solutions
INTERIM RESULTS, 30 NOV 2020 BLUE LABEL DATA SOLUTIONS • Experiencing challenging and uncertain times due to Covid-19. • Latest stats reveal millions of additional job losses compounding the negative effects of Covid-19. • Tough economy affecting new business drive from customers and response rates
Slide 26: BluNova
BLUNOVA blunova.co.za BLUE LAREL
Slide 27: About BluNova
INTERIM RESULTS, 30 NOV 2020 ABOUT BLUNOVA The data consolidation, insights and decisioning arm of Blue Label: • Helps build automated transactional businesses through data analytics and decisioning expertise. Data is important to the • Offers services in the categories of strategy and insights, mar
Slide 28: Technology
TECHNOLOGY the lifeblood of Blue Label
Slide 29: Technology
INTERIM RESULTS, 30 NOV 2020 TECHNOLOGY Infrastructure Core Platforms Digital Ongoing Transformation Transformation Transformation Operational Stability Defence of core business and Continued advancements in • Remote workplace: shift in focus • Core distribution systems stability enablement of hosti
Slide 30: Cell C
CELL C cellc.co.za <@ BLUE LAREL
Slide 31: Cell C Turnaround Strategy
INTERIM RESULTS, 30 NOV 2020 Liquidity focus Network strategy • Liquidity platform is in place. • Cell C is a significant wholesale aggregator of network capacity. • Strict liquidity protocols overseen by independent 3rd party. • Migration of contract and broadband subscribers to • Informal debt sta
Slide 32: 2020 Operational Review
INTERIM RESULTS, 30 NOV 2020 2020 OPERATIONAL REVIEW For the six months ended 30 November 2020 • Revenue decreased due to airtime discounts provided R’m Nov 2020 Nov 2019 % Change during the period. The ARPU (excl. discounts) increased from R54 in the prior year (6-month average) Service Revenue 7,1
Slide 33: Strategy to Focus on the Quality of Subscribers
INTERIM RESULTS, 30 NOV 2020 STRATEGY TO FOCUS ON THE QUALITY OF SUBSCRIBERS * TOTAL ARPU vs TOTAL SUBSCRIBERS For the six months ended 30 November 2020 16000 000 100 14000 000 90 80 12000 000 70 • Positive ARPU maintained for a 10000 000 60 sustained period of time. 8000 000 50 6000 000 40 • At the
Slide 34: Financial Results
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Slide 35: Financial Highlights
INTERIM RESULTS, 30 NOV 2020 FINANCIAL HIGHLIGHTS For the six months ended 30 November 2020 REVENUE * GROSS PROFIT GP MARGIN INTEREST- BEARING BORROWINGS R9.6bn R1.14bn 11.87% R2.3bn declined by 3% from increased from reduced from R1.17bn in 2019 10.33% in 2019 R3.6bn in 2019 HEADLINE CORE HEADLINE
Slide 36: Group
INTERIM RESULTS, 30 NOV 2020 GROUP For the six months ended 30 November 2020 Group Group Growth Growth Unaudited Nov 2020 Nov 2019 R'000 % NOTES R'000 R'000 Revenue 9,582,022 11,310,930 (1,728,908) (15%) The performance of the Blue Label Group remains Gross Profit 1,137,650 1,168,738 (31,088) (3%) r
Slide 37: Revenue
INTERIM RESULTS, 30 NOV 2020 REVENUE For the six months ended 30 November 2020 Group Group Growth Growth May 2020 May 2019 R'000 % Unaudited R'000 R'000 NOTES Prepaid airtime, data and related revenue 17,380,264 16,969,362 410,902 2% - Prepaid airtime and data 8,333,550 10,098,270 (1,764,720) (17%)
Slide 38: Cash Flow
INTERIM RESULTS, 30 NOV 2020 CASH FLOW For the six months ended 30 November 2020 NOTES Group Group Nov 2020 Nov 2019 Working capital movements comprised a decrease in Unaudited R'000 R'000 trade receivables of R361 million, an increase in trade payables of R332 million, offset by an increase in inve
Slide 39: Balance Sheet
INTERIM RESULTS, 30 NOV 2020 BALANCE SHEET For the six months ended 30 November 2020 Group Group Nov 2020 Nov 2019 Unaudited R'000 R'000 NOTES Non-current assets 2,177,090 2,357,620 The net decrease of R140 million in investments Property, plant and equipment 206,214 198,688 in associates and joint
Slide 40: Thank You
THANK YOU Questions? 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
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