Slide 1: Annual Results
ANNUAL Audited results for the year ended 31 May 2022 RESULTS Audited results for the year ended 31 May 2022
Slide 2: Agenda
BLUE LABEL AUDITED RESULTS 31 MAY 2022 2 AGENDA Strong performance and growth. Learn more 01 02 03 04 05 Operating Highlights Focus on Looking Ahead Financial Environment Subsidiaries Overview
Slide 3: Resilience of Our Business
BLUE LABEL AUDITED RESULTS 31 MAY 2022 3 RESILIENCE OF OUR BUSINESS Industry Trends Regulation Socio-Political Macro-Economic • Financial inclusion and rise of • Cyber Crimes Act • Looting in KZN • Lackluster economic growth digital banking and e-commerce • KZN Gaming and Betting Tax • Floods in KZN
Slide 4: Financial Highlights
BLUE LABEL AUDITED RESULTS 31 MAY 2022 4 FINANCIAL HIGHLIGHTS For the year ended 31 May 2022 REVENUE * GROSS PROFIT GROSS PROFIT MARGIN R17.8bn R2.93bn 16.46% (2021:18.8bn) (2021: R2.38bn) (2021: 12.66%) Imputed Revenue up 10% * On inclusion of the gross ** ** On exclusion of non-recurring HEADLINE
Slide 5: Gross Revenue & Profit
BLUE LABEL AUDITED RESULTS 31 MAY 2022 5 GROSS REVENUE & PROFIT Strong growth in Gross Revenue (10%) and Gross Profit (23%) in the current financial year. Gross Revenue Gross Profit 80 000 3 500 +10% 70 000 3 000 +23% 60 000 2 500 50 000 R'millions R'millions 2 000 40 000 1 500 30 000 1 000 20 000 1
Slide 6: EBITDA
BLUE LABEL AUDITED RESULTS 31 MAY 2022 6 EBITDA 1 800 +25% Increased by 25% 1 600 1 400 1 200 On exclusion of the R326 million relating to the non- R'millions 1 000 recurring income in the current year and R132 million in the prior year, EBITDA increased by 12%. 800 600 400 200 - 2020 2021 2022
Slide 7: Strategic Highlights
BLUE LABEL AUDITED RESULTS 31 MAY 2022 7 STRATEGIC HIGHLIGHTS Consistent implementation of strategy Future-ready organisation • Back to basics • Post-Covid organisational culture • Finalisation of Cell C Recap • Improved employee value proposition • Financial resilience • High quality appointments C
Slide 8: Operational Highlights
BLUE LABEL AUDITED RESULTS 31 MAY 2022 8 OPERATIONAL HIGHLIGHTS 32m 7m 100% RINGAS UNIQUE ALTERNATE DATA TRANSITION OF CUSTOMERS PROJECT BOSTON SERVICES 25% 21m 150% GROWTH IN OPT-IN GROWTH IN REVENUE TRADER BASE DATABASE TRANSACTIONJUNCTION ACROSS GROUP
Slide 9: Subsidiaries
SUBSIDIARIES bluelabeltelecoms.co.za
Slide 10: Blue Label Distribution
BLUE LABEL AUDITED RESULTS 31 MAY 2022 10 BLUE LABEL DISTRIBUTION Focused on innovation and diversification to ensure differentiation. • New products and services • Increasing key distribution partners and product listings • Additional market share and branded exposure in informal market Learn More
Slide 11: Channel Performance
BLUE LABEL AUDITED RESULTS 31 MAY 2022 11 CHANNEL PERFORMANCE Even under challenging conditions, overall channel performance reached record highs this year. 40000 35000 R'millions 30000 25000 20000 15000 10000 5000 0 Financial institutions Aggregators Retail independents Retail formal Petro convenie
Slide 12: Product Performance
BLUE LABEL AUDITED RESULTS 31 MAY 2022 12 PRODUCT PERFORMANCE Product development and exclusive product offerings remained a key focus. 35000 R'millions 30000 25000 20000 15000 10000 5000 0 Airtime offline Airtime online Electricity Gaming Ticketing Other 2019 2020 2021 2022 Prepaid Electricity sale
Slide 13: The Informal Market
BLUE LABEL AUDITED RESULTS 31 MAY 2022 13 THE INFORMAL MARKET Our aim remains to expand our footprint in the informal market environment, making access to our products and services more convenient and more affordable. Over the past year we placed aggressive emphasis on aligning our operations to mee
Slide 14: Snapshot
BLUE LABEL AUDITED RESULTS 31 MAY 2022 14 SNAPSHOT Trade Efficiencies & Profitability Consumer Trends • Trader base has stabilised and is • Key commercial changes were plugged • Significant increase in the sales of BLT’s showing good traction and has grown by into our environment, resulting in own p
Slide 15: The Prepaid Company
BLUE LABEL AUDITED RESULTS 31 MAY 2022 15 THE PREPAID COMPANY Prepaid SIM market is but TPC is innovating. Job creation and skills development Defend and maintain traditional base Terminal SIM bundling Learn More
Slide 16: Job Creation, Defend & Maintain, Terminal SIM Bundling
BLUE LABEL AUDITED RESULTS 31 MAY 2022 16 Job Creation & Skills Development Defend & Maintain Terminal SIM Bundling • 400 Learners to date, 2500 • 1000 Learners estimated for • A universal, single use, • Agnostic multi network estimated for FY 2023 FY 2023 prepaid airtime voucher aggregator • Soweto
Slide 17: GloCell Retail Solutions
BLUE LABEL AUDITED RESULTS 31 MAY 2022 17 GLOCELL RETAIL SOLUTIONS GloCell Retail Solutions’ trader base has stabilised and is growing. Trade is showing promising trends, both in terms of average per trade, as well as from a product mix perspective. We are currently working on new strategies to inno
Slide 18: GloCell Retail Solutions Growth Overview
BLUE LABEL AUDITED RESULTS 31 MAY 2022 18 Growth Overview • Newer generic voucher offerings, Ringas and Blu Voucher, deliver strong growth. GLOCELL • Aligned to diversification strategy, continued focus on Transportation, Gaming and PINless Airtime. RETAIL • Launching offerings across broader financ
Slide 19: CEC Update
BLUE LABEL AUDITED RESULTS 31 MAY 2022 19 CEC UPDATE A specialist finance house that empowers established South African enterprises with accessible, intelligent finance, CEC has shown solid growth in the 2022 financial year. Learn More
Slide 20: CEC Key Results
BLUE LABEL AUDITED RESULTS 31 MAY 2022 20 CEC KEY RESULTS R1 200 Millions R1 000 R 800 R 600 +12% GP R 400 NPAT R 200 R0 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 Highlights • Completion of all Project Boston services GP R310m R550m R1.04bn • Focus on growth of post-paid base NPAT R213m R289m
Slide 21: Subscription Income Sharing Arrangement
BLUE LABEL AUDITED RESULTS 31 MAY 2022 21 SUBSCRIPTION INCOME SHARING ARRANGEMENT CEC has evolved from a Driving various initiatives to Launched several campaigns specialised lender to a fully improve service delivery and to drive acquisition and operational business unit customer satisfaction: awar
Slide 22: BluAdvance
BLUE LABEL AUDITED RESULTS 31 MAY 2022 22 BLUADVANCE CEC, together with BluNova, is the custodian of credit products within the broader BLT Group. BluAdvance is the latest application of this, and will provide high frequency, low value voucher advances to approved customers. Eligible customers +/-25
Slide 23: Blue Label Connect Strategy
BLUE LABEL AUDITED RESULTS 31 MAY 2022 23 BLUE LABEL CONNECT STRATEGY FY 2023 FY 2022 Growth FY 2021 Build Foundations / Growth Stabilise
Slide 24: Blue Label Connect Ecosystem
BLUE LABEL AUDITED RESULTS 31 MAY 2022 24 BLUE LABEL CONNECT ECOSYSTEM As the leading supplier of post-paid airtime, content and value-added services to the public at affordable rates, we partner with retailers, credit providers, cellular dealers and large corporate customers to extend their offerin
Slide 25: Cell C: Investing for Growth
BLUE LABEL AUDITED RESULTS 31 MAY 2022 25 Leveraging key assets CELL C Enhanced competitiveness with INVESTING FOR GROWTH additional spectrum Implementation of new operating model on track A resilient brand • Good progress in the execution of the network strategy to substitute capex for opex and clo
Slide 26: Resilient Business
BLUE LABEL AUDITED RESULTS 31 MAY 2022 26 RESILIENT BUSINESS Covid affected Group in many ways but group remains robust and innovative.
Slide 27: Cigicell
BLUE LABEL AUDITED RESULTS 31 MAY 2022 27 R31.5bn gross revenue CIGICELL As the leading distributor of prepaid electricity and water tokens in SA, we assist municipalities to collect, protect and enhance revenue. • Contracts re-awarded, includes City of Cape Town, Eskom, Rustenburg and City Power. •
Slide 28: Gross Revenue FY 2022
BLUE LABEL AUDITED RESULTS 31 MAY 2022 28 GROSS REVENUE FY 2022 18% Bulk of earnings come from electricity sales, which has shown consistent growth in gross revenue, increasing by 18% to R31.5bn in the current year. Electricity Face Value Sales 35 000 +18% R’millions 30 000 25 000 20 000 15 000 10 0
Slide 29: Group Initiatives
BLUE LABEL AUDITED RESULTS 31 MAY 2022 29 GROUP INITIATIVES • On a growth trajectory. • Performance slightly affected by Local • Continues to make strides in the Government Elections. private metering business. • Business has grown in GP from R900K in FY 2021 – R6m in FY 2022. • Decision-making on n
Slide 30: BLDS Update
BLUE LABEL AUDITED RESULTS 31 MAY 2022 30 BLDS UPDATE Blue Label Data Solutions has had a good year, boasting a large confirmed opt-in database, strong relationships with clients and across the group, and several opportunities for growth.
Slide 31: Strengths / Growth
BLUE LABEL AUDITED RESULTS 31 MAY 2022 31 STRENGTHS / GROWTH Machine Large confirmed Strong New partnership Fulfil sales Learning and AI Leverage Blu opt-in database relationships models to through the to improve Approved with Blue Chip enhance 21.1m customers entire lifecycle lead/data quality camp
Slide 32: BluNova
BLUE LABEL AUDITED RESULTS 31 MAY 2022 32 BLUNOVA On track to achieve financial and strategic goals. Current Primarily focused on key projects for CEC and Cell C. Looking forward Strategic projects focus on capacity building and scaling success.
Slide 33: Achievements
ACHIEVEMENTS Scoring algorithms for CEC Bureau batch vetting service to NanoAdvances deployed with Launch of new Internship have led to >7k New-to- prescore the Cell C Postpaid an Electricity Advance on USSD programme. Credit approvals. base of customers, enabling and a UniPIN clawback Optimisations
Slide 34: Transaction Junction
BLUE LABEL AUDITED RESULTS 31 MAY 2022 34 TRANSACTION JUNCTION Major supplier of payment services in sub-Saharan Africa, continues to grow footprint across all retail tiers. 150% Growth in e-commerce and new digital Channels
Slide 35: Coverage
BLUE LABEL AUDITED RESULTS 31 MAY 2022 35 COVERAGE Technology via the cloud, made easier by Amazon Web Services (AWS) deployments. live underway Learn More
Slide 36: Looking Forward
BLUE LABEL AUDITED RESULTS 31 MAY 2022 36 Delivering on new strategic agreements LOOKING FORWARD The ability to harness technology via the cloud confirms our platform’s ability to accept and deliver transactions from anywhere to any destination via any channel. Transaction Junction is well positione
Slide 37: Technology
TECHNOLOGY Is the lifeblood of Blue Label
Slide 38: Technology: Digital Advancement & Core Platforms
BLUE LABEL AUDITED RESULTS 31 MAY 2022 38 TECHNOLOGY Digital Business Advancement & Core Platforms Transformation Marketplace Master Data Management Concluded our API gateway The Master Data Strategy and approach have been defined Enterprise Architecture Digital Transformation Enterprise architectur
Slide 39: Technology: Operational Stability, Governance & Cyber Security
BLUE LABEL AUDITED RESULTS 31 MAY 2022 39 TECHNOLOGY Ongoing Operational Stability, Governance & Cyber Security Uptime Combined uptime of 99.6% across all transactional platforms Zero Trust Maintained ongoing cyber security vigilance with 0% tolerance Governance Formalised implementation of the IT g
Slide 40: Ticketpro Overview
BLUE LABEL AUDITED RESULTS 31 MAY 2022 40 TICKETPRO OVERVIEW • PUTCO grew from R16.4m in FY 2019 over the 3-year period to R39.6m in FY 2022 • Transport contributed 94% of Total Revenue in FY 2021. • Recovery in Sports and Events limited.
Slide 41: Gross Commission Revenue
BLUE LABEL AUDITED RESULTS 31 MAY 2022 41 GROSS COMMISSION REVENUE Revenue by Financial Year FY2018 to FY2022 35 R’millions 30 25 20 15 10 5 0 R R R R R -5 FY2018 FY2019 FY2020 FY2021 FY2022 Jun - May 18 Jun - May 19 Jun - May 20 Jun - May 21 Jun - May 22 PUTCO Long Haul Sports Events VAS Other Desp
Slide 42: Transport Innovations
BLUE LABEL AUDITED RESULTS 31 MAY 2022 42 TRANSPORT INNOVATIONS Turnkey platform comprises of state-of-the-art software and hardware for any bus carrier, enabling a world-class ticketing system for the modern commuter. Ability to sell tickets online Hardware is built in SA Acts as a fleet management
Slide 43: Transport Innovations
BLUE LABEL AUDITED RESULTS 31 MAY 2022 43 TRANSPORT INNOVATIONS Watch content Purchase airtime, data, electricity Purchase Blu Vouchers WIFI Inhouse WIFI platform that enables VOD and WiFi for bus commuters
Slide 44: Ticketpro Travel
BLUE LABEL AUDITED RESULTS 31 MAY 2022 44 TICKETPRO TRAVEL Fully-fledged online travel portal launched: • Local and International • Flights • Packages • Accommodation • Car Rental ticketprotravel.co.za
Slide 45: Outlook
BLUE LABEL AUDITED RESULTS 31 MAY 2022 45 OUTLOOK Future proofing ourselves and building the competence of the group with technological innovation. South Africa Focused Product Development Digital Ecosystem • Short- and medium-term • Customer satisfaction • Digitised business processes • Back to bas
Slide 46: Financial Results
FINANCIAL RESULTS bluelabeltelecoms.co.za
Slide 47: Financial Highlights
BLUE LABEL AUDITED RESULTS 31 MAY 2022 47 FINANCIAL HIGHLIGHTS For the year ended 31 May 2022 REVENUE * GROSS PROFIT GROSS PROFIT MARGIN R17.8bn R2.93bn 16.46% (2021:18.8bn) (2021: R2.38bn) (2021: 12.66%) Imputed Revenue up 10% * On inclusion of the gross ** ** On exclusion of non-recurring HEADLINE
Slide 48: Group Income Statement
BLUE LABEL AUDITED RESULTS 31 MAY 2022 48 GROUP INCOME STATEMENT For the year ended 31 May 2022 Extraneous Extraneous Group income* Remaining Group income** Remaining Growth Growth NOTES May 2022 May 2022 May 2022 May 2021 May 2021 May 2021 remaining remaining R'000 R'000 R'000 R'000 R'000 R'000 R'0
Slide 49: Extraneous Income FY2022
BLUE LABEL AUDITED RESULTS 31 MAY 2022 49 EXTRANEOUS INCOME For the year ended 31 May 2022 Extraneous income* Once-offs(1) NOTES May 2022 May 2022 *The extraneous contributions to Group earnings in the R'000 R'000 current year were attributable to once-off income (1), including: Other income 360 955
Slide 50: Extraneous Income FY2021
BLUE LABEL AUDITED RESULTS 31 MAY 2022 50 EXTRANEOUS INCOME For the year ended 31 May 2021 Extraneous Fair value income** movements(2) Once-offs(3) WiConnect(4) NOTES May 2021 May 2021 May 2021 May 2021 **The extraneous contributions to Group earnings R'000 R'000 R'000 R'000 in the prior year were a
Slide 51: Revenue
BLUE LABEL AUDITED RESULTS 31 MAY 2022 51 REVENUE For the year ended 31 May 2022 Group Group May 2022 May 2021 Variance Variance NOTES R'000 R'000 R'000 % Revenue generated by the continuing operations Prepaid airtime, data and related revenue 35 541 647 35 615 630 (73 983) 0% within the Group decli
Slide 52: Balance Sheet
BLUE LABEL AUDITED RESULTS 31 MAY 2022 52 BALANCE SHEET For the year ended 31 May 2022 Group Group May 2022 May 2021 R'000 R'000 NOTES Of the net increase in intangible assets and goodwill of Non-current assets 3 499 479 2 821 283 R614 million, additions to intangible assets amounted Property, plant
Slide 53: Cash Flow
BLUE LABEL AUDITED RESULTS 31 MAY 2022 53 CASH FLOW For the year ended 31 May 2022 Group Group May 2022 May 2021 NOTES R'000 R'000 Cash generated from trading operations totalled R935 million. Working capital movements comprised Cash generated by operations 934 577 1 739 859 an increase in trade pay
Slide 54: Thank You
BLUE LABEL AUDITED RESULTS 31 MAY 2022 54 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