Blu Label Unlimited Group Ltd · JSE:BLU
Blu Label Unlimited — Blue Label Unlimited Group — FY2023 Earnings Presentation
41 slides from Blu Label Unlimited's earnings presentation, Aug 30, 2023
Slide 1: Annual Results
Investor Presentation // 30 August 2023 ANNUAL RESULTS Audited results for the year ended 31 May 2023 bluelabeltelecoms.co.za BLUE LABEL AUDITED RESULTS 31 MAY 2023 1
Slide 2: Key Results
Key Results Gross * Revenue Successful navigation of a challenging operating environment. R76.8bn R3.48bn Growth GRO SS PRO FI T (+ 19%) 6% +17,6% TRANSACTIONS * Including the gross amount generated on “PINless top-ups”, prepaid electricity, ticketing and gaming +8% TRADER BASE BLUE LABEL AUDITED RE
Slide 3: Loadshedding
Loadshedding Total of Electricity not consumed 305 days during 01/06/22 – 31/5/23 There were seven consecutive Network operators impacted months with some form of loadshedding every day, with electricity availability between 50% and 55% of full capacity. Merchants could not connect BLUE LABEL AUDITE
Slide 4: Our Strategy
Our Strategy Essential Execute with products excellence Strong distribution Investment in Innovative network platforms team BLUE LABEL AUDITED RESULTS 31 MAY 2023 4
Slide 5: Progress
Progress Performance Customers are a priority, focus on providing Reworked business model to present clients with a comprehensive and compelling offering. them with what they need, when they need it. Reliability of our products and trust in our name result in greater brand recognition. Products & Se
Slide 6: Blue Label Subsidiaries
BLUE LABEL SUBSIDIARIES bluelabeltelecoms.co.za BLUE LABEL AUDITED RESULTS 31 MAY 2023 6
Slide 7: Blue Label Distribution
Blue Label R20m Cost Optimisation Distribution Programme Exceeding revenue targets. R23m Revenue Assurance Programme BLUE LABEL AUDITED RESULTS 31 MAY 2023 7
Slide 8: Group Channel Performance
Group Channel Performance Continued shift from pinned to pinless data and airtime. As a consequence, growth is recorded in retail independents with the strongest growth experienced in the financial institutions segment. 45 000 R'millions 40 000 35 000 30 000 Gross Revenue 25 000 20 000 15 000 10 000
Slide 9: Group Product Performance
Group Product Performance All products have seen solid growth except for pinned airtime and data due to the continued shift to pinless data and airtime. The steady growth experienced in gaming gives reason for optimism. 35 000 R'millions 30 000 25 000 Gross Revenue 20 000 15 000 10 000 5 000 - Airti
Slide 10: Challenges
Challenges Loadshedding Estimated R30m loss in Blue Label Distribution’s gross profit due to loadshedding Rand/Dollar Exchange Rate Negative impact on international money transfer volumes BLUE LABEL AUDITED RESULTS 31 MAY 2023 10
Slide 11: Comm Equipment Company
Strong growth over the past four years Comm Equipment GP Company R1 600 Millions R1 400 R1 200 Service provider of choice through the provision of R1 000 innovative and value-adding solutions to their R800 customers. R600 This will be achieved through their acquisition and R400 retention targets, st
Slide 12: CEC Successes
1. NEW CONTRACT PLANS CEC Successes 2. SUPPLY CHAIN Improved stockholding, new outbound logistics partners, and improved • Introduced new “elevate” contract inventory management model. plans that are simplified and competitive. 3. RELATIONSHIPS • Also a 36-month contract that enables customers to af
Slide 13: CEC Performance
CEC Performance New With handset ACQUISITIONS RENEWALS Without Handset Migrations Target Jul '22 Aug '22 Sep '22 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Mar '23 Apr '23 May '23 Jul '22 Aug '22 Sep '22 Oct '22 Nov '22 Dec '22 Jan '23 Feb '23 Mar '23 Apr '23 May '23 Subscriber acquisitions have consis
Slide 14: Cell C
Cell C Significant milestones reached Expenses reduced by 20% BLUE LABEL AUDITED RESULTS 31 MAY 2023 14
Slide 15: ARPU
ARPU • The competitive landscape continued to drive data prices prices down. This, coupled with increased data usage, resulted in a lower ARPU versus the 2022 financial period. • ARPU was high comparative to the industry, despite a reduced base, indicating higher spend per customer. • The business m
Slide 16: Our Focus Areas
People & Network & Cash Flow & Brand Stakeholder Network Liquidity Positioning Engagement Perception Return to Growth Our Focus Areas BLUE LABEL AUDITED RESULTS 31 MAY 2023 16
Slide 17: Cigicell
to deliver on our SLA’s including some of our Delivery revenue assurance 01 projects and learned • Delivered on SLA’s including valuable lessons on revenue assurance projects. • how the latter can on be Cigicell Learned valuable lessons quantified quantifying with with manageable manageable delivera
Slide 18: Token Identifier Rollover
15 months Before deadline Token Identifier Rollover Estimated 10 million STS-approved prepaid electricity meters are required to be updated by Nov 2024. CigiCell has the necessary capacity and capability to assist Eskom and local authorities achieve this deadline. BLUE LABEL AUDITED RESULTS 31 MAY 2
Slide 19: BluNova
BluNova Data consolidation, insights and decisioning arm. Continues to focus on key projects for Cell C and CEC, as well as external monetisation initiatives. BLUE LABEL AUDITED RESULTS 31 MAY 2023 19
Slide 20: Electricity Advances
Electricity Advances R10m+ ADV ANCES 600k+ TRANSACTIONS BLUE LABEL AUDITED RESULTS 31 MAY 2023 20
Slide 21: AltBureau
Unconventional data sources Trends and insights Connects data subscribers to a wide range of Using data science and data engineering, it unconventional data sources by collecting, publishes data features and predictive data processing and analysing alternative data models using modern cloud technolo
Slide 22: Transaction Junction
Transaction Junction 32% annual growth in merchant base 27.5% annual growth 500% surge in in the Rand value of eCommerce revenue transactions contribution BLUE LABEL AUDITED RESULTS 31 MAY 2023 22
Slide 23: Uniqueness, Cross-selling, Distribution, Infrastructure
UNIQUENESS CROSS-SELLING 01 02 Products and services are uniquely Strengthened cross-selling designed for the conditions and opportunities within existing consumer needs on our continent. merchant base and future clients. . DISTRIBUTION INFRASTRUCTURE Expanding distribution network for 04 03 Signifi
Slide 24: More than just a ticketing company
More than just a ticketing company Events Bus Flights Car Rental Accommodation Data Airtime Electricity Ticket sales Marketing Access control Bookings BLUE LABEL AUDITED RESULTS 31 MAY 2023 24
Slide 25: Brands
Brands Nine different brands under TicketPro, each catering to a different demand. BLUE LABEL AUDITED RESULTS 31 MAY 2023 25
Slide 26: Travel
Travel Competitively priced flights, car rental and accommodation. • Cryptocurrency • Richer content • Cheaper rates • Automated travel bookings • Seamless experience with global integrations B2B // Spotnana Automated travel bookings, delivered seamlessly to a www.ticketprotravel.co.za single platfo
Slide 27: Soweto Smart Tap successfully launched
Added four new long distance bus carriers to portfolio Soweto Smart Tap successfully launched 600 Buses 40k Unique taps per day BLUE LABEL AUDITED RESULTS 31 MAY 2023 27
Slide 28: Digital Business Transformation Journey
Digital Business Transformation Journey Amplifying customer and business value, while modernizing technology platform and empowering people to enable value creation. ACCELERATE AMPLIFY ACTIVATE How to ACCELERATE shift How to AMPLIFY current digital How to use digital thinking to ACTIVATE towards a b
Slide 29: Innovation Pipeline
Innovation Pipeline The first wave produced many innovative and exciting ideas for creating new customer and business value across the Group. This has enabled a solid innovation pipeline, with the first batch of concepts currently undergoing market testing and validation. Exciting plans for 2024 BLU
Slide 30: Outlook
Outlook Harnessing the changing and improving economic Performance conditions and ensuring that we continue to exploit the Retain competitive edge and market leadership role, anchored in our many opportunities of growth, success and innovation. customer-centricity. Products & Services Platforms Cont
Slide 31: Financial Results
FINANCIAL RESULTS bluelabeltelecoms.co.za BLUE LABEL AUDITED RESULTS 31 MAY 2023 31
Slide 32: Financial Highlights
FINANCIAL HIGHLIGHTS For the year ended 31 May 2023 REVENUE * GROSS PROFIT GROSS PROFIT MARGIN +19% R18.9bn R3.48bn 18.41% (2022: R2.93n) (2022: 16.46%) ** * On inclusion of the gross amount generated on “PINless top-ups”, prepaid electricity, ticketing and CORE HEADLINE EARNINGS / SHARE gaming, the
Slide 33: Group Income Statement
GROUP INCOME STATEMENT For the year ended 31 May 2023 Extraneous Extraneous NOTES Group costs* Remaining Group income** Remaining Growth Growth May 2023 May 2023 May 2023 May 2022 May 2022 May 2022 remaining remaining Core headline earnings for the year ended 31 May R'000 R'000 R'000 R'000 R'000 R'0
Slide 34: Extraneous Costs
EXTRANEOUS COSTS For the year ended 31 May 2023 Extraneous Recap of (1) (2) NOTES costs* Cell C Once-offs * The extraneous contributions to Group earnings in the current year were May 2023 May 2023 May 2023 primarily attributable to: R'000 R'000 R'000 • the accounting treatment relating to the recap
Slide 35: Extraneous Income
EXTRANEOUS INCOME For the year ended 31 May 2022 NOTES ** The extraneous contributions to Group earnings in Extraneous (3) the prior year were attributable to once-off income (3), income** Once-offs including: May 2022 May 2022 • once-off recoupment income of R123 million, R'000 R'000 comprising the
Slide 36: Revenue
REVENUE For the year ended 31 May 2023 Group Group May 2023 May 2022 Growth Growth NOTES R'000 R'000 R'000 % Group revenue increased by R1.1 billion (6%) to R18.9 billion. However, as only the gross profit earned on “PINless top-ups”,prepaid electricity, Prepaid airtime, data and related revenue 34
Slide 37: Balance Sheet
BALANCE SHEET For the year ended 31 May 2023 Group Group May 2023 May 2022 NOTES R'000 R'000 The increase of R1.9 billion in loans to associates and joint ventures Non- current assets 5 700 072 3 499 479 primarily related to the recapitalisation of Cell C and comprised the following: Property, plant
Slide 38: Cash Flow
CASH FLOW For the year ended 31 May 2023 Group Group May 2023 May 2022 NOTES R'000 R'000 Cash generated from trading operations amounted to R203 million. Working capital movements included an increase in Cash generated by operations 202 876 934 577 inventory of R1.7 billion and advances to customers
Slide 39: Borrowings
BORROWINGS For the year ended 31 May 2023 Group Group Group May 2023 Nov 2022 May 2022 R'000 R'000 R'000 Repayment terms Revolving credit facility with drawdowns available until October African Bank Limited 1 900 000 1 890 789 1 623 342 2023 and final settlement date of November 2025 Reduce by R20 m
Slide 40: Normalised Cash Generated from Operating Activities
NORMALISED CASH GENERATED FROM OPERATING ACTIVITIES For the year ended 31 May 2023 31 May 31 May 2023 2022 R’000 R’000 Normalised cash generated from operating activities 1 324 954 1 222 755 Additional interest received 82 565 - Additional interest paid [321 915] - Restricted and excess bulk stock a
Slide 41: 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 BLUE LABEL AUDITED RESULTS 31 MAY 2023 41
Blue Label Unlimited Group — FY2023 Earnings Presentation on 6ix