Interim Results Presentation for the half year ended 30 November - - PowerPoint PPT Presentation

Interim Results Presentation

for the half year ended 30 November 2010

AGENDA

• Salient Features
• International Distribution
• International Distribution
• Blue Label Technology,

Mobile and Solutions

• Financial Overview
• South African Distribution

South African Distribution

• Conclusion

2

Salient Features

• Strong financial performance
• Rationalisation and consolidation of operations
• Partnership involving Mpesa and ubank announced
• Cancelled distribution agreement with Multi-Links, Nigeria
• Kiosk banking rollout in India in partnership with State Bank of India
• Turnarounds at Oxigen India, Datacel Group and Ukash
• Share register rebased

g

• Admitted to JSE’s Socially Responsible Investment Index

3

I t ti l International Distribution

• India

Mark Levy

• Mexico
• Nigeria

Mark Levy Joint CEO

Oxigen India

• 90 000 POS, covering 27 states, accelerating with low cost GPRS-enabled POS
• Expansion in financial services gaining momentum with partners:

Expansion in financial services gaining momentum with partners:

• State Bank of India
• Largest public bank in India
• No-frills kiosk banking
• Business-Correspondent model
• Expanding in Delhi, Mumbai and Maharashtra
• Well-positioned as platform for value-added services

ICICI Bank

• ICICI Bank
• Largest private-sector bank in India
• LUUP
• Bank-based platform for mobile payments
• Foreign remittances from Gulf states to India

5

Oxigen India

• Oxicash, mobile wallet and related card products launched

Other ser ices tra el and hospitalit ins rance loans micro loans

• Other services: travel and hospitality, insurance, loans, micro-loans
• Profit generating, EBITDA positive

p

6

Africa Prepaid Services – Nigeria (APSN)

• Distribution agreements in place with networks Zain, Globacom,

Eti l t d St f di t h h Etisalat and Starcomms for direct recharge purchase

• Eezzee recharge launched

7

Africa Prepaid Services - Nigeria

• November 2010, APSN announced cancellation of distribution

agreement with Multilinks and claim for damages

• Procedure:
• Quantifying claim
• Arbitration process

p

• Jurisdiction in South Africa
• Right-sizing operations in Nigeria
• Right-sizing operations in Nigeria
• Overall strategy for Nigeria continues:
• Expand existing footprint by growing the distribution of virtual pre-paid

products, in partnership with Nigerian network operators and utility providers

8

Ukash – United Kingdom

• Available at more than 420 000 retail locations across 6 continents in

th 50 t i more than 50 countries

• Evolving into a vast secure cash-loading eMoney network
• Contributing to profit
• Management strengthened with new CEO appointment
• A major beneficial shareholder now MasterCard at 8.68%

9

Technology Highlights

• Consolidation and integrating group systems and platforms continues
• Finalised core architectural framework across group

Ukash no

• nline in So th Africa
• Ukash now online in South Africa
• PINLess integrations completed at Cell C, Vodacom, MTN and Telkom
• Providing self-service ticket vending machines to Gautrain
• EFT / Postillion switch sees further traffic increases
• EFT / Postillion switch sees further traffic increases
• RICA systems now proving stable – 5500 devices employed
• Challenging integration with Mexico successfully completed

10

Blue Label Mobile - MSC

• Blue Label Mobile comprises Mobile Services Company

(MSC) Cellfind and Content Connect Africa (CCA) (MSC), Cellfind and Content Connect Africa (CCA) MSC

• Launched mobile banking for ubank (formerly Teba)
• Developed & launched mobiMerchant to vend our products
• Enhanced mobiWallet for payment services (B2B and

B2B2C) Blue Label Media

• Substantial growth over previous year
• Diverse & appealing inventory including:
• Diverse & appealing inventory including:
• Bulk Vouchers
• Blue Label Till Slips

Third party Till Slips

• Third party Till Slips
• Corporate Gift Cards
• Blue Label Big Screen

Media Jukeboxes

• Media Jukeboxes

11

Blue Label Mobile - Cellfind

WASP SERVICES P t f t 5 WASP i SA h i t th

• Part of top 5 WASPs in SA – showing strong growth
• Full suite of aggregation Services
• Developed a Messaging Portal – Corporate & Consumer

B2B PRODUCTS & SERVICES

• Focus area with good growth
• Cellfind Corporate & Look4Me 4 Business
• Cellfind Corporate & Look4Me 4 Business
• Cellfind Assets & Assist
• White Labelled services – miTraffic
• miPayslip
• miPayslip

B2C PRODUCTS & SERVICES

• Traditional business

stable customer base

• Traditional business – stable customer base
• Look4Me & Look4Help
• MTN WhereRU & 2MyAid
• miTraffic & miMusic
• miTraffic & miMusic
• Symantec

12

Blue Label Mobile - CCA

• 2010 World Cup projects:
• MTN Group theme song for Africa

L hi th B f B f lb f V d

• Launching the Bafana Bafana album for Vodacom
• Signed up audio and visual content for third party

clients throughout Africa

• Created end-to-end solutions beyond only content

for corporates - 360 degree solutions

13

Blue Label Solutions

• Velociti: Call centres consolidated in Durban, with 760 seat capacity
• Continuing to focus on full service in- and out-bound, sales and

customer services as well as business process outsource provider

• Blue Label Data Solutions: evolved into all-encompassing data

analytics solutions and delivery company

• Offering innovative geo-spatial coding and expanding into email

direct marketing

14

Fi i l Fi i l Financial Overview

David Rivkind

Financial Overview

David Rivkind David Rivkind Financial Director David Rivkind Financial Director

15

Income statement

30 Nov 2010 30 Nov 2009 Growth R’000 R’000 %

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9%

16

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

Financial highlights

(8%)

Growth

Revenue R9bn Gross profit R573m (8%) (8%) Operating expenditure R270m EBITDA R310m (7%) (16%) Operating profit R259m Net finance income R25m (13%) 6 341%) Net finance income R25m NPAT R193m C i R206 6 341%) 9%) 6%) Core earnings R206m Headline earnings per share 25.45 cents 6%) 9%)

17

Core earnings per share 27.27 cents 7%)

FINANCIAL OVERVIEW

Segmental profile

• South African distribution

South African distribution

• International distribution
• Mobile
• Solutions
• Technology

18

Income statement

30 Nov 2010 30 Nov 2009 Growth R’000 R’000 %

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Segmental revenue Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) Segmental revenue South African distribution 8 519 296 7 591 164 12%) International distribution 439 907 674 866 (35%) Mobile 41 876 56 992 (27%) S l ti 61 228 69 220 (21%) Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Solutions 61 228 69 220 (21%) Technology 7 677 9 718 (12%) Total 9 069 984 8 401 960 8% % C t ib ti Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) % Contribution South African distribution 93.8% 90.4% International distribution 4.9% 8.0% Mobile 0.5% 0.7% Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% Solutions 0.7% 0.8% Technology 0.1% 0.1% Total 100% 100%

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

19

Income statement

Six months ended 30 Nov 2010 31 May 2010 30 Nov 2009 R’000 R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) Segmental gross profit South African distribution 442 619 406 186 461 044 International distribution 58 397 95 502 92 518 Mobile 35 178 25 737 40 382 Solutions 31 037 25 355 24 993 Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Technology 6 108 8 2 499 Total 573 339 552 788 621 436 Gross profit % Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) South African distribution 5.20% 5.11% 6.07% International distribution 13.27% 16.67% 13.71% Mobile 84.00% 67.69% 70.85% Solutions 50.69% 46.90% 36.11% Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% So u o s 50 69% 6 90% 36 % Technology 79.56% 0.10% 25.71% Total 6.32% 6.41% 7.40%

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

20

Income statement

Six months ended 30 Nov 2010 31 May 2010 30 Nov 2009 R’000 R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) Segmental gross profit South African distribution 442 619 406 186 461 044 International distribution 58 397 95 502 92 518 Mobile 35 178 25 737 40 382 Solutions 31 036 25 355 24 993 South African distribution excluding imputed interest adjustments 454 043 409 336 444 440 Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Technology 6 108 8 2 499 Total 573 339 552 788 621 436 Gross profit % Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) South African distribution 5.20% 5.11% 6.07% International distribution 13.27% 16.67% 13.71% Mobile 84.00% 67.69% 70.85% Solutions 50.69% 46.90% 36.11% South African distribution excluding imputed interest adjustments 5.30% 5.11% 5.84% Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% So u o s 50 69% 6 90% 36 % Technology 79.56% 0.10% 25.71% Total 6.32% 6.41% 7.40%

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

21

Income statement

Six months ended 30 Nov 2010 31 May 2010 30 Nov 2009 R’000 R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) Segmental gross profit South African distribution 442 619 406 185 461 045 International distribution 58 397 95 502 92 518 Mobile 35 178 40 382 40 382 Solutions 31 036 2 499 24 993 International distribution excluding imputed interest adjustments 53 440 89 981 74 625 Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Technology 6 108 24 355 2 499 Total 573 339 552 788 621 436 Gross profit % Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) South African distribution 5.20 5.11 6.07 International distribution 13.27% 16.67% 13.71% Mobile 84.00 67.69 70.85 Solutions 50.69 46.90 36.11 International distribution excluding imputed interest adjustments 12.15% 15.72% 11.05% Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% So u o s 50 69 6 90 36 Technology 79.56 0.10 25.71 Total 6.32 6.41 7.40

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

22

Income statement

30 Nov 2010 30 Nov 2009 R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Segmental EBITDA margins EBITDA margin % South African distribution 4 1% 4 8% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) South African distribution 4.1% 4.8% International distribution 1.7% 9.4% Mobile 31.2% 15.9% Solutions 20.2% (0.4)% Total trading operations 4 2% 5 2% Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Total trading operations 4.2% 5.2% Segmental EBITDA South African distribution 346 171 361 746 Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) International distribution 7 344 63 349 Mobile 13 070 9 083 Solutions 12 388 (268) Total trading operations 378 973 433 910 (13%) Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% Technology (27 939) (25 735) Corporate (40 772) (40 346) Total support (68 711) (66 081) (4%) Total 310 262 367 829 (16%)

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

23

Income statement

30 Nov 2010 30 Nov 2009 R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Segmental EBITDA margins EBITDA margin % South African distribution 4 1% 4 8% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) South African distribution 4.1% 4.8% International distribution 1.7% 9.4% Mobile 31.2% 15.9% Solutions 20.2% (0.4)% Total trading operations 4 2% 5 2% South African distribution excluding imputed interest adjustments 4.2% 4.5% Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Total trading operations 4.2% 5.2% Segmental EBITDA South African distribution 346 171 361 746 Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) International distribution 7 344 63 349 Mobile 13 070 9 083 Solutions 12 388 (268) Total trading operations 378 973 433 910 (13%) South African distribution excluding imputed interest adjustments 357 593 345 140 Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% Technology (27 939) (25 735) Corporate (40 772) (40 346) Total support (68 711) (66 081) (4%) Total 310 262 367 829 (16%)

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

24

Income statement

30 Nov 2010 30 Nov 2009 R’000 R’000

Segmental EBITDA margins EBITDA margin % South African distribution 4 1 4 8 South African distribution 4.1 4.8 International distribution 1.7% 9.4% Mobile 31.2 15.9 Solutions 20.2 (0.4) Total trading operations 4 2 5 2 International distribution excluding imputed interest adjustments 0.5% 6.7% Total trading operations 4.2 5.2 Segmental EBITDA South African distribution 346 171 361 746 International distribution 7 344 63 349 Mobile 13 070 9 083 Solutions 12 388 (268) Total trading operations 378 973 433 910 (13%) International distribution excluding imputed interest adjustments 2 388 45 456 Technology (27 939) (25 735) Corporate (40 772) (40 346) Total support (68 711) (66 081) (4%) Total 310 262 367 829 (16%)

25

Income statement

30 Nov 2010 30 Nov 2009 R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Net finance income 25 378 394 Finance income 68 809 63 499 Interest on liquid working capital 27 889 43 834 Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) Imputed interest adjustment 40 920 19 665

• Decline in finance income, net of IFRS adjustments, was R16m, mainly due to decline in interest rates and settlement

di t t k Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% discounts taken

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

26

Income statement

30 Nov 2010 30 Nov 2009 R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) ( ) ( ) Imputed interest adjustments (39 148) (59 948) Interest paid (4 283) (3 157)

• Decline in imputed interest adjustment due to settlement discounts taken

Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9%

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

27

Income statement

30 Nov 2010 30 Nov 2009 Growth R’000 R’000

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499)

• Oxigen Services India
• Reduction in losses of 57% due to:
• growth in revenue of 7%; and

Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105)

• reduction in overheads of 18%
• Ukash
• The Inclusion of an historical unrecognised deferred tax asset of R4m added to their positive contribution.

Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038)

• Redemption volumes up 101%

Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9% Oxigen Services India Pvt Ltd (1 972) (4 595) Ukash 3 308) (7 542) Other 632) 240) Total 1 968) (11 897) 13 865

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

28

Total 1 968) (11 897) 13 865

Income statement

30 Nov 2010 30 Nov 2009 Growth R’000 R’000 %

Revenue 9 069 984) 8 401 960) 8% Cost of inventories sold (8 496 645) (7 780 524) Gross profit 573 339) 621 436) (8%) Gross profit % 6 32% 7 40% Core net profit South African distribution 286 650) 288 412) International distribution (47) 13 358) Gross profit % 6.32% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% D i ti ti ti d i i t h 51 013) 68 499) International distribution (47) 13 358) International distribution associates (1 968) (11 987) Mobile 5 274) 1 695) Solutions 7 449) (16 033) Total operations 297 358) 275 445) 8% Depreciation, amortisation and impairment charges 51 013) 68 499) Operating profit 259 249) 299 330) (13%) Net finance income 25 378) 394) Finance income 68 809) 63 499) Finance expense (43 431) (63 105) Total operations 297 358) 275 445) 8% Technology (37 737) (35 727) Corporate (53 240) (45 510) T t l t (90 977) (81 237) (12%) Net profit before taxation 284 627) 299 724) Taxation (94 698) (100 874) Net profit after taxation 189 929) 198 850) (5%) Share of profit/(loss) of associates and joint ventures 1 968) (11 897) Non-controlling interests (NCI) (740) (10 038) Total 206 381 194 208 6% Core earnings per share 27.27 25.59 7% Total support (90 977) (81 237) (12%) Non controlling interests (NCI) (740) (10 038) Net profit after taxation and minorities interest 192 637) 176 915) 9% Amortisation on intangibles raised through business combinations net of tax and NCI 13 744) 17 293) Core net profit after taxation 206 381) 194 208) 6% Earnings per share for profit attributable to equity holders (cents) Basic 25 45 23 31 9%

• Basic

25.45 23.31 9%

• Headline

25.45 23.38 9%

• Core

27.27 25.59 7%

29

Balance sheet

30

30 Nov 2010 31 May 2010 R’000 R’000

ASSETS ASSETS Non-current assets 720 932 717 581 Current assets 4 709 810 3 730 721 Total assets 5 430 742 4 448 302 EQUITY AND LIABILITIES Capital and reserves 2 745 762 2 655 436 Capital and reserves 2 745 762 2 655 436 Non-current liabilities 48 546 47 696 Current liabilities 2 636 434 1 745 170 Total equity and liabilities 5 430 742 4 448 302

Balance sheet

31

30 Nov 2010 31 May 2010 R’000 R’000

NET CURRENT ASSETS Current assets 4 709 810 3 730 721 Inventories 1 259 446 560 846 Trade and other receivables (1) 1 603 558 987 279 Cash and cash equivalents 1 762 060 2 057 077

• 1. Trade and other receivables
• Includes R329m pre-

payment for bulk

q Other current assets 84 746 125 519 Current liabilities 2 636 434 1 745 170

p y purchases and R287m additional credit granted to customers.

Trade and other payables 2 303 394 1 718 907 Other current liabilities(2) 333 040 26 263 Net Current Assets 2 073 376 1 985 551

• 2. Other current liabilities
• Short-term loan of R300m

procured for 10 days

Net Current Assets 2 073 376 1 985 551

Cash flow

32

30 Nov 2010 R’000 Operating profit 259 249) Adj t d f h it 61 726)

1. Changes in working capital Outflows due to: Growth in inventories

Adjusted for non-cash items 61 726) Changes in working capital (1) (699 367) Cash generated by operations (378 392) Net interest received 23 607)

• Growth in inventories –

R699m

• Prepayment of R329m for

bulk purchases and rebates thereon

• Extended credit to customers

Net interest received 23 607) Taxation paid (92 294) Cash flows from operating activities (447 079) Cash flows from investing activities (2) (42 924)

• Extended credit to customers

– R287m Inflows due to:

• Trade creditors funding –

R584m

• Reduction in starter pack

Cash flows from financing activities (3) 203 363) Decrease in cash and cash equivalents (286 640) Cash and cash equivalents at the beginning of the period 2 054 902)

• Reduction in starter pack

assets of R28m 2. Cash flows from investing activities was mainly due to capex

Cash and cash equivalents disposed of in subsidiaries 384) Translation difference (6 586) Cash and cash equivalents at end of period 1 762 060)

capex 3. Cash flows from financing activities

• Treasury shares acquired –

R9m R9m

• Dividend – R91m
• Short-term loan of R300m

South African Distribution Brett Levy Joint CEO

New Products

• M-PESA
• ubank
• Neotel and 8ta
• Access ADSL
• Data retail / wholesale plans

Data retail / wholesale plans

• UniPin prepaid electricity (ubiquitous pin)
• EFT
• EFT
• Bill Payments
• PINless
• Blu Approved

34

Existing Products

• Rica and Prepaid Airtime

p

• Lotto

Ki k

• Kiosks
• Starter packs
• Algoa bus ticketing
• Ukash

U as

• cover2go

35

Prepaid Electricity – Monthly Revenue Growth

R 300 000 000 R 200 000 000 R 250 000 000 R 150 000 000 R 200 000 000 R 100 000 000 R 0 R 50 000 000 R 0

* The group does not account for revenue on face value on electricity but only the commission received

36

Prepaid Electricity

• Eskom and Johannesburg City Power endorsement
• Awarded Ekurhuleni and eThekwini municipalities
• Cross selling opportunities advancing, like bill payments
• Growing UniPIN redemptions

Growing UniPIN redemptions

37

M-PESA

Blue Label’s 5 transaction points

• Money-in and Money-out
• Treasury function / cash management
• Re-loading / top-up
• Access to VAS products and services

Update

• Closed loop
• Slowly gaining traction
• 850 outlets
• 1.2 million registered users
• 60-70 000 active transactions daily

60 70 000 active transactions daily

38

Other Products

• Bill payments
• RICA
• Neotel and 8ta
• Wireless G / Axxess ADSL

39

PINLess Recharge Technology

PIN confirmation

Billing Engine

PIN confirmation

40

Prepaid Airtime Revenue

2009 2010

R1 800 000 000

June July August September October November

R1 400 000 000 R1 600 000 000 R1 000 000 000 R1 200 000 000 R400 000 000 R600 000 000 R800 000 000 R- R200 000 000 R400 000 000

41

Prepaid Airtime Revenue per Product

2009 2010

Cell C 7% Cell C

2010

7% MTN 10% MTN 30% Vodacom 58% MTN 35% Vodacom 51% Telkom 5% Telkom 4%

42

Shareholder Profile and Free Float

Beneficial Shareholders

South Africa

Netherlands

South Africa USA UK Luxembourg Netherlands

UK 6.6% Luxembourg 4.4% 1.9%

Australia Channel Islands Ireland Japan S il d

USA 19.1%

Swaziland Saudi Arabia Namibia France South Korea South Korea Norway Canada Bermuda Portugal South Africa Free Float %

Free Float Strategic Holders

Portugal UAE Switzerland 64.4%

47.3% 51.4% Below Threshold

43

43

Threshold 1.3%

Conclusion

• SA revenue growth continues ~12%, reaching about 140 000 points
• Money transfers with financial inclusion launched with M-PESA and

ubank

• Pursuing healthcare and ETC opportunities
• India

focus on rolling through more financial services

• India – focus on rolling through more financial services
• Mexico – positioned for growth
• Nigeria – strategy affirmed after cancelling Multi-Links
• Ukash – revenue up 67% equating to 101% redemptions

p q g p

• Settlement discounts in preparation for December trade

G th i iti d di id d i ldi

• Growth, acquisitive and dividend yielding company

44

Thank you

Questions & Answers

Supplementary information

46

Supplementary: Group Structure

Blue Label Mobile Blue Label South Africa Blue Label International Blue Label Technology Blue Label Solutions

Cellfind Content Connect Africa The Prepaid Company Blue Label Distribution African Prepaid Services (72%) APS Nigeria (51%)

gy

Activi Technology Services Activi Datacel Velociti Africa Mobile Services Company Company Crown Cellular Bela Phone Company (51%) Gold Label (51%) Oxigen Services India (37 22%) Transaction Junction (60%) Blue Label Data Solutions (81%) CNS Call Centre Ventury The Postpaid Company (75%) Company (51%) Sharedphone International (50 1%) India (37.22%) Ukash (15.79%) Blue Label Procurement (50%) Solutions (81%) Company (75%) International (50.1%) Blue Label Mexico (70%)

100% unless otherwise stated

47

Supplementary: Global Footprint

Two strategies for international expansion: Bricks and Mortar & Technology Offerings

Technology offering

Austria Belgium Benin Canada China Czech Republic Denmark DRC Estonia Finland France Greece Guinea Bissau Haiti Hungary Ireland Italy Latvia Lesotho Liberia Mozambique Netherlands Norway Poland Portugal Russia Rwanda Serra Leone Slovenia Spain Sweden Tanzania Uganda Ukraine United Kingdom

Bricks and Mortar

India Mexico Nigeria Uruguay Yemen Zimbabwe Nigeria South Africa United Kingdom

48

Supplementary: Barriers to Entry

• The following natural barriers to entry exist in the environments

in which BLT operates:

• The ease of ability to integrate can be hindered by lag times in the

negotiation of supplier and customer contracts

• Lock out periods for the processing of new technologies
• Customers desire to prioritise for their own objectives and/or

products and services

• These have become some of our greatest assets, achieved by

securing long term contracts with customers and suppliers

49

Supplementary: Oxigen India – Historic Monthly POS Deployment

90000 100000

p y

Introduced multi device solutions applicable per segment and ARPU levels

0000 80000 90000 POS

Base clean out and redeployment, assessed trading volumes, capex investment and matched POS type to merchant Introduction of additional Merchant lifecycle management

60000 70000 POS

Introduction of additional products such as E-Top Ups which met merchant demand. Merchant lifecycle management focus on quality base and payback period parameters in order to focus

• n EBTIDA break even

Period Growth over period Ave device / head

40000 50000

Period Growth over period Ave device / head count / month Apr 08 to Feb 09 61%, (1600 per month) 25 devices per month Mar 09 to Feb 10 69%, (2041 per month) 35 devices per month

20000 30000

Historic devices focused on initial CDMA and PSTN (landline) owing to mobile operators penetration in market and coverage. Early device deployment utilized ISO model which lead to inefficiencies with respect to deployment data, device control, Mobile operators improve connectivity and GPRS capability, this allowed consistent device deployment Mar 10 to Sep 10 44% (4407 per month) for 6 month period 77 devices per month

10000

contractual engagements with regional representatives and merchants.

50

Supplementary: Technical Overview

PRODUCTS / SERVICES Blue Label or Third Party

Airtime Utilities (electricity / OTHER Insurance Gift voucher, Loyalty card, Bill payments / Airline tickets, bus ( y water) y y , etc p y EFT , tickets

Mobile Devices

BLUE LABEL TECHNOLOGY PLATFORM (AEON)

POSTILION

BLUE LABEL DISTRIBUTION

POS Terminal Vending Machine Touch Screen Bulk Voucher Integrated Gateway Kiosk

Main Independent Financial Wholesale Main Retailers Independent Retail Kiosks Informal Retail Financial Institutions

51

Supplementary: : M-PESA Aggregator Model

Vodacom

Vodacom M-PESA Head Office Setup and manage Setup and manage Outlets Outlet Head Office

Bl L b l

Outlet Head Office

Management of Float Accounts and Commissions Office Terminal Office Assistant

Blue Label

Outlet Interact Outlet Interact

Merchants

Outlet Assistant (Primary) Outlet Till (Primary) Outlet Assistant (Primary) Outlet Till (Primary) Interact with Vodacom M-PESA Customers Interact with Vodacom M-PESA Customers Additional Outlet Tills and ( y) Additional Outlet Tills and and Assistants and Assistants 52

Supplementary: UniPIN – Process Flow for Electricity Purchase

53