Audited results for the year ended 31 May 2012 Notice The - PDF document

Audited results for the year ended 31 May 2012

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 forward looking statements expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions be- cause by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the forward looking statements. Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based on negli- gence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation and do not undertake to publicly update or re- vise any of its opinions or forward looking statements whether to re- flect new information or future events or circumstances otherwise. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Directors: LM Nestadt (Chairman)*, BM Levy, MS Levy, K Ellerine*, GD Harlow*, NN Lazarus SC*, JS Mthimunye*, MV Pamensky, DB Rivkind, J Vilakazi* (*Non-executive) Company Secretary: E Viljoen Sponsor: Investec Bank Limited Auditors: PricewaterhouseCooper Inc. Blue Label Telecoms Limited (Incorporated in the Republic of South Africa) (Registration number 2006/022679/06) JSE Share code: BLU ISIN: ZAE000109088 (“Blue Label” or “BLT” or “the company” or “the group”)

Blue Label Audited results for the year ended 31 May 2012 1 Audited Results for the year ended 31 May 2012 Highlights for the year ended 31 May 2012 Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions � Revenue increases 4% to R18.7 billion � Gross profit increases 13% to R1.2 billion � EBITDA up 26% to R750 million* � Headline earnings per share up 40% to 64.65 cents* � R528 million cash generated from operations � Growth strategy delivering results: � South Africa: electricity commissions earned up 39% � India: delivers a profit Dividend per share � Mexico: accelerating POP roll-out rate 25 20 � 91.8 million share buyback completed Cents 15 10 � Dividend of 23 cents per share declared, up 64% 5 0 * including a once–off receipt of R79.4 million 2010 2011 2012 2

Blue Label Audited results for the year ended 31 May 2012 2 Strategy to Creating Value Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions � Robust, scalable, agnostic � Prepaid provides certainty � >150,000 POPs in SA and proprietary technology platform - AEON � Prepaid is an alternative � Organic growth payment method � Postilion switch for financial � Surplus cash: Dividend services � Airtime builds railroad tracks yielding, share buy- back, mergers and � Ensure matching skills and � Add products and services acquisitions talent � Growing demand in SA: � Large, fast growing � Minimal capital expenditure electricity, financial services, markets with low ticketing, data delivery penetration � Minimal cost to delivery � Income based on 3 pillars: � Entrepreneurial spirit � Sustainable commodity, annuity and interest � Unleveraged balance sheet � Business model generates � Building network distribution robust cash flows and introducing products and services � Growth at operations in India and Mexico - regional � Growing product lines and springboards consumer bases 3 South African Distribution Brett Levy – Joint CEO 4

Blue Label Audited results for the year ended 31 May 2012 3 Operational and Financial Highlights Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions � Revenue up 3% to R18.4 billion � Increasing trend to act as agent on sales of certain products e.g. PINless top up � Gross profit margin increases 0.5% from 5.19% to 5.69% � Renewal of exclusive long-term contract with Vodacom � Electricity commissions received up 39% from R61 million to R85 million � Other and new product development gathers momentum � Outlook is for a strong performance from telco’s and prepaid electricity, in a changing landscape. 5 Prepaid Airtime: Revenue Growth Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions 2012 2011 R 2 500 R 2 500 R 2 000 R 2 000 R 1 500 R 1 500 R 1 000 R 1 000 R 500 R 500 Millions Millions R - R 0 Revenue comprises sales of physical and virtual prepaid airtime as well as compounded annuity generated from starter packs. 6 6

Blue Label Audited results for the year ended 31 May 2012 4 Prepaid Airtime and Starter-Packs Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions � Revenue growth mostly organic and volume related � No. of connections at ~450,000/month � Growth strategy implementation underway: � Blu Approved brand roll-out intensifies, � rural: reach enhanced with distribution partner’s 60 x 3 ton trucks and 100 foot soldiers, � urban: expanding retail footprint. 7 7 Prepaid Airtime: Revenue Growth Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions Vodacom 54% MTN 34% Cell C 10% Telkom 2% Vodacom 52% MTN 35% Cell C 10% Telkom 3% *the � other � networks � amount � to � less � than � 1% 8 8

Blue Label Audited results for the year ended 31 May 2012 5 Prepaid Electricity Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions � Commissions received up 39% from R61 million to R85 million � Equates to R5.5 billion in utility sales, up from R3.4 billion � Act as agent not principal: � only commission earned included in revenue and not face value of sales � Widespread electricity utility, municipality and customer endorsements � Prepaid meters: ~ 9 million stretching to Govt’s goal of 13 million by 2014: � smart meters � free basic electricity � UniPIN � Establishes new base for continuing growth 9 9 Prepaid Electricity: Revenue Growth Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions R 600 000 000 R 500 000 000 R 400 000 000 R 300 000 000 R 200 000 000 R 100 000 000 R 0 June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June YE 2009 YE 2010 YE 2011 YE 2012 10 10 10 10 10 10

Blue Label Audited results for the year ended 31 May 2012 6 Prepaid Electricity: UniPIN Redemptions Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions 450 000 R 45 000 000 400 000 R 40 000 000 350 000 R 35 000 000 300 000 R 30 000 000 250 000 R 25 000 000 Quantity Redeemed 200 000 R 20 000 000 Value Redeemed 150 000 R 15 000 000 100 000 R 10 000 000 50 000 R 5 000 000 - R 0 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 11 11 11 11 11 11 New and other Products and Services Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions � Financial services: mobile banking, money transfers, bill payments, EFT, NFC, Senda Mobile Merchant � Digital couponing: Mobilitrix, intelligent data, loyalty plans � Ticketing: Events and transport � Other: Prepaid water advertising, Spinner, SupaStakes football, Kingo Bela international calling card, PlaySALottery Corporate Governance tools prepaid Pay TV SportsConnect, MallConnect 12 12 12 12 12 12 12

Blue Label Audited results for the year ended 31 May 2012 7 Shareholder Profile and Free Float Technology , Highlights Strategy SA Distribution International Financial Prospects Mobile andSolutions Beneficial Shareholders South Africa 80% USA 8% UK 6% Rest of World 6% Free Float % Free Float 52% � Admitted to MSCI in December 2011 Strategic Holders 45% Below Threshold 3% 13 13 13 13 13 13 13 International Distribution Mark Levy – Joint CEO 14 14