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 International ti l Distribution • India • Mexico • Nigeria Mark Levy 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 services: travel and hospitality, insurance, loans, micro-loans Other ser ices tra el and hospitalit ins rance loans micro loans • Profit generating, EBITDA positive p 6

Africa Prepaid Services – Nigeria (APSN) • Distribution agreements in place with networks Zain, Globacom, Eti Etisalat and Starcomms for direct recharge purchase l t d St f di t h h • 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 more than 50 countries th 50 t i • 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 now online in South Africa Ukash no online in So th 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 • Part of top 5 WASPs in SA – showing strong growth P t f t 5 WASP i SA h i t th • 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 • Traditional business – stable customer base 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 - Launching the Bafana Bafana album for Vodacom L hi th B f B f lb f V d • 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 Fi Financial Financial i l i l Overview Overview David Rivkind David Rivkind David Rivkind David Rivkind Financial Director 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 % Gross profit % 6 32% 6.32% 7 40% 7.40% Other income 6 769) 36 460) Overheads (269 846) (290 067) EBITDA 310 262) 367 829) (16%) EBITDA % 3.4% 4.4% Depreciation, amortisation and impairment charges D i ti ti ti d i i t h 51 013) 51 013) 68 499) 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) Non controlling interests (NCI) (740) (740) (10 038) (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 Basic 25 45 25.45 23.31 23 31 9% 9% - Headline 25.45 23.38 9% - Core 27.27 25.59 7% 16

Financial highlights Growth (8%) (8%) Revenue R9bn (8%) Gross profit R573m (7%) Operating expenditure R270m (16%) EBITDA R310m (13%) Operating profit R259m 6 341%) 6 341%) Net finance income Net finance income R25m R25m 9%) NPAT R193m 6%) 6%) C Core earnings i R206 R206m 9%) Headline earnings per share 25.45 cents 7%) Core earnings per share 27.27 cents 17

FINANCIAL OVERVIEW Segmental profile • South African distribution South African distribution • International distribution • Mobile • Solutions • Technology 18