Slide 1: Unaudited results for the half year ended 30 November 2013
Unaudited results for the half year ended 30 November 2013
Slide 2: Notice
Notice The information contained in this document has not been verified independently. No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Opinions and
Slide 3: Highlights for the half year ended 30 November 2013
Unaudited Results for the half year ended 30 November 2013 1 Highlights for the half year ended 30 November 2013 Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • HEPS up 7% to 37.15 cents • Gross profit increase by 10% to R710 million • GP margin up fr
Slide 4: South African Distribution: Acquisitions
Acquisitions Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • Retail Mobile Credit Solutions (RMCS) announced 24 Dec 2013 (100%) • Service provider of virtual and physical cellular data • Enhancing access to new distribution channels, strong retail dis
Slide 5: Operational and Financial Highlights
Operational and Financial Highlights Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • Revenue achieved R9 billion • Trend to purchasing PINless airtime • Gross Profit % increases from 6.04% to 6.96% • Electricity commissions earned up 26% • 3 income pi
Slide 6: PINless Airtime Growth; Prepaid Airtime and Starter-Packs
PINless Airtime Growth 2013 2012 December January February March April May June July August September October November 180 160 140 120 R Millions 100 80 60 40 20 - 7 Prepaid Airtime and Starter-Packs Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • Rev
Slide 7: Prepaid Airtime Revenue Growth per Network
Prepaid Airtime Revenue Growth per Network June - November 2013 August 2012 – July 2013 Cell C Vodacom Cell C Vodacom 12% 50% 17% 51% Cell C Cell C MTN MTN Telkom Telkom Vodacom Vodacom MTN MTN 36% 32% Telkom 1% Telkom 1% 9 Prepaid Electricity Mobile Highlights Acquisitions SA Distribution Internati
Slide 8: Prepaid Electricity
Prepaid Electricity – 5 Year View Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions 900 800 700 600 R Millions 500 400 Electricity Revenue 300 200 100 - Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Dec-08 Dec-09 Dec-10 Dec-
Slide 9: Prepaid Electricity - UniPIN; New Products and Services
Prepaid Electricity - UniPIN Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions 70 000 000 700 000 60 000 000 600 000 50 000 000 500 000 Quantity 40 000 000 400 000 R 30 000 000 300 000 20 000 000 200 000 2012 Value 10 000 000 100 000 2013 Value 2012 Qty -
Slide 10: Shareholder Profile; International Distribution
Shareholder Profile Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions Beneficial Shareholders South Africa 83% USA 7% UK & Europe 8% Rest of World 2% Free Float Free Float 55% Strategic Holders 43% Below Threshold 2% 15 International Distribution Mark Lev
Slide 11: International Overview and Ukash
Overview Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • International strategy replicates SA business model • Litigation arising from Multi-Links heading to High Court • Growing interest from banking sector • Building distribution capability in Mexic
Slide 12: Oxigen Services India; Blue Label Mexico
Oxigen Services India Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • Economic growth whilst Telco landscape consolidates • Accelerating reach-out to unbanked • Shift continues towards expanding financial services • Remittance market – Domestic and In
Slide 13: Mobile and Solutions Segments
Mobile and Solutions Segments . 21 Mobile Segment Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • Products and services for mobile phones • SMS sales, financial services, couponing, loyalty, rewards, ticketing, NFC, media advertising, gaming and LBS •
Slide 14: Solutions Segment; Technology
Solutions Segment Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • Velociti - Focus on in-bound campaigns • Blue Label Data Solutions - Data analytics - Deep access database - Cleansing data services (FIDS) - Implementing POPI and Consumer Protection A
Slide 15: Prospects; Financial Overview
Prospects Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions • Airtime under pressure • Transport, event and expo ticketing to enhance product offering • Acquisition of RMCS to access new distribution channels • Oxigen India increasing volumes in financial
Slide 16: Financial Highlights; Income Statement
Financial Highlights Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions Gross Profit GP Margins EBITDA Increased by Increased from Increased by 16% R66 million 6.80% to to R431 million 7.82% Headline Cash generated Capital and Earnings by operations Reserv
Slide 17: South African Distribution and Associates
South African Distribution Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions Nov 2013 Nov 2013 Nov 2012 Growth % R’000 R’000 R’000 R’000 Growth Total group SA Distribution SA Distribution SA Distribution Revenue 9,079,022 8,923,465 9,321,467 (398,002) (4%
Slide 18: Joint Ventures; Income Statement
Joint Ventures Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions Nov 2013 Nov 2012 Growth R’000 R’000 R’000 Share of losses from joint ventures (33,179) (24,892) (8,287) - Blue Label Mexico (30,709) (22,894) (7,815) - Other (2,470) (1,998) (472) • Blue La
Slide 19: Balance Sheet; Cash Flow
Balance Sheet Mobile Highlights Acquisitions SA Distribution International and Prospects Financial Solutions Summarised Group Statement of Financial Position as at 30 Nov 2013 31 May 2013 Non- current assets 1,422,960 1,340,410 Property, plant and equipment 98,212 88,125 • Net growth in Intangible I
Slide 20: Supplementary Information: Group Operating Structure
Supplementary Information 35 Supplementary – Group Operating Structure Blue Label Blue Label Blue Label Blue Label South Africa International Mobile Solutions Blue Label African Prepaid Cellfind Datacel Distribution Services (72%) The Prepaid Gold Label Blue Label One Velociti Company Investments Ox
Slide 21: Supplementary – Technical Overview; Blue Label factsheet
Supplementary – Technical Overview 37 Supplementary – Blue Label factsheet • Founded in 2001 • 1103 employees • Business model underpinned by long-term contracts • Income drivers: • sales of commodity – 42% • annuity income – 55% • interest earned – 3% • Listed as BLU on JSE in 2007, ADR’s launched
Slide 22: Supplementary – Barriers to entry
Supplementary – Barriers to entry • Lag times in negotiating supplier and customer contracts can hinder integration • Long term contracts – to ensure there is no cheaper pricing in the market • Lock-out periods for processing new and developing existing technologies. Roll-out of devices takes time •