AUDITED RESULTSFor the full year ended 31 May 2018

Revenue increased 1% to R26.8 billion

Including PINless revenue grew 9%

GP increased 7% to R2.28 billion

EBITDA increase 4% to R1.34 billion

Core EPS increased 4% to 120.61c

HEPS increased 1% to 115.42c

Share buy back programme approved

Highlights for the year ended 31 May 2018 - Strong growth relative to telco industry

-

5

10

15

20

25

30

2013 2014 2015 2016 2017 2018

R'b

illio

n

Revenue

-

200.00

400.00

600.00

800.00

1 000.00

1 200.00

2013 2014 2015 2016 2017 2018

Cen

ts

NAV per share

-

200

400

600

800

1 000

1 200

1 400

1 600

2013 2014 2015 2016 2017 2018

R'm

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n

EBITDA

-

500

1 000

1 500

2 000

2 500

2013 2014 2015 2016 2017 2018

R'm

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n

Gross Profit

0

5

10

15

20

25

30

2013 2014 2015 2016 2017 2018

R'b

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ns

Gross PINless Transactional Values

3

FY18 - concluding acquisitions and designing integration

Extension of distribution reach – organic & acquisitively

Expanded product portfolio

Investing in human capital – distribution specialists

Streamlining operational processes – focused customer targeting, speed to market & performance culture

Investing in technology

Strategic imperatives – Built resilient business, deliberate focus on organic & acquisitive growth

The RITE Strategy

» Blue Label Ventures:

• Boutique Tech business accelerator

• iCrypto acquired – disruptive authentication and identity solution

• Security solution establishing true identity through multifactor identification

4

Technology – Future proofing the organisation

Continued investing in technology platforms & skills

Adopting Global best practices – Strategic benefit, reducing the

cost of transactions, increasing speed

Smarter technology creates smarter interaction with customers

Constantly evolving to provide better service & greater access

Technology differentiates us from competitors

Direct correlation in technology, foot traffic and sales

Developing Artificial Intelligence & Machine Learning capabilities

Agility 2013 2014 2015 2015 2016 2016 2017 2018

Transaction Volumes

Total

5

SA & Africa Distribution – built strong base, optimizing for further organic growth

Revenue grew 1% to R26.2 billion

GP increased 8% to R2.0 billion

EBITDA remained at R1.3 billion

EBITDA margins decreased from 5.18% to 5.12%

Core net profit up 56% to R1.4 billion

Data management optimized for targeted growth

National Coverage, across all channels

Hub and spoke strategy developed for increased reach

Business processes streamlined for speed to market

Performance management processes geared up

Strategic partnership focus

SA & Africa

Distribution

2016

R’000

2017

R’000

2018

R’000

Revenue 25 722 540 25 944 102 26 245 206

EBITDA 1 133 433 1 344 714 1 344 824

Core NPAT 750 951 893 106 1 385 494

6

Product Portfolio - Key to competitive positioning and preventing disintermediation

Revenue growth across all product categories

Online continues to grow robustly

Further strides made in electricity

Bill Payments - new products added – DSTV

Ticketing provides differentiation

Other products – early days with strong growth

Growing product portfolio provides new revenue streams

and discourages disintermediation

Blue Label provides a one-stop shop for retailers:

• Blu Approved kiosks increased revenue for retailers

• A magnet for foot traffic

15755000

4870703

7567679

7754295

2543530

29402

316

38520925

18909000

7241124

7746414

10551793

3241641

146859

25278

47862109

19087000

10373515

8123579 13588234

4101704

366186

282736

55922954

0

10000000

20000000

30000000

40000000

50000000

60000000

Wholesale Topupsonline

Topupsoffline

Electricity BillPayments

Ticketing Other Total

SA & Africa Distribution Revenue Rm’s

2016

2017

2018

* Bill payments not included in gross transactional value

7

Product Penetration – Focused product growth

All products achieved increased penetration in channels

Management information & reporting strengthened

Allows intelligent growth of portfolio through:

• Promotion

• Incentives

• Targeted placements

Ensuring quality subscriber growth for the networks

Intelligent credit extension to merchants

Bad debt controlled

Strive to increase products and services available to

customers

Focus on driving additional product sales per channel

89.9% 88.7% 88.3% 89.3% 89.6% 90.2%91.9% 92.7% 93.6% 94.3% 94.6% 94.9%

43.4%46.8%

51.6%54.0%

57.9%

61.7%

66.1%

69.3%72.4%

74.9% 76.7% 76.5%

53.2%54.8%

58.5% 59.5%61.8%

63.9% 65.3%

66.6%68.1% 68.2% 68.9% 69.2%

1.0% 0.9% 0.9% 0.9% 0.9% 2.3%4.8% 13.7%

17.6%21.0%

23.9%

33.4%

5.6% 7.0%9.3%

13.4% 13.2%

17.7% 19.2%23.0% 24.5%

27.1%29.5%

31.1%

0.5% 0.5% 0.5% 0.6% 0.6% 1.4% 2.1% 2.9%4.8% 5.2% 5.4% 5.1%

F16 Q1 F16 Q2 F16 Q3 F16 Q4 F17 Q1 F17 Q2 F17 Q3 F17 Q4 F18 Q1 F18 Q2 F18 Q3 F18 Q4

Product Penetration

Airtime Data Electricity Other Financial Services Ticketing

8

Channel Performance – Wider, deeper reach, superb speed to market & excellent customer service

Corporate and formal retail drive majority of gains

Formal retail delivered 21% growth in face value revenue & 13% in

sales revenue

Corporate has delivered 50% growth in face value revenue & 33% in

sales revenue

Banks looking to deal with one-stop shop and decrease admin costs

Independent market represents major growth platform – hub &

spoke strategy

Improved data collection & reporting – know where to concentrate

expansion drive through customer insights

20%

59% 3%

28% 0% 1%

49%9%

21% 4%

22689

40062

32008

9

Hub & Spoke Strategy - Formal retail provides strong base, growth from independent market

81%31 million people earn less than R6000 per

month

Although 70% of people have bank accounts they

are only used as a means to access cash.

Consumers are shopping closer to home and

finding value in doing so.

Financial inclusion depends on access to virtual

products and services

4500 spokes and 100 hubs delivered in three

months - more signed up daily

10

Blue Label Mobile – new products, new geographies

Operates in 4 verticals – integrated comms, value added services, financial services,

marketing

Highly competitive, mature market

Regulatory and MNO restrictions impacting growth

Focusing on B2B vs. B2C

Strategic drive to bundle service offerings & focus on growth segments across the group

Expand geographically – only at marginal cost and specific fit with MNOs

Deploy complementary MNO grade technology platforms

Mobile 2016

R’000

2017

R’000

2018

R’000

Revenue 291 856 347 858 359 970

EBITDA 111 142 99 101 101 883

Core NPAT 65 333 56 327 59 553

11

Airvantage – new products, new geographies

Acquired Airvantage:

• Extensive experience in nano score card analysis and consumer behaviours

• Guarantees the highest possible service revenue, ensures low levels of bad

debt and churn

• Over 1 million advances per day and over 1 billion USD to date

• Expand top-up offerings over BLU’s product range

• Expansion into Brazil & Africa

• Offer clients a fully managed end to end solution

• Take over non-performing network product & manage on MNO’s behalf

• Evolving/morphing the platform to other business units within BLT

Jan – May 2018 Airvantage

SA

R’000

Airvantage

Brazil

R’000

Revenue 36 929 -

EBITDA 20 649 (12 049)

NPAT 8 267 (5 640)

12

Blue Label Data Solutions – targeted analytics

POPI & CPA compliant

Robust growth continues in competitive market

Opt-In register of 21.1 million entries

• Rebuilt monthly

Focus on lead generation

Blue Nova

• Data analytics drives future business

• Driving understanding of customer behaviour

AI / Data Lakes / Machine Learning

Solutions 2016

R’000

2017

R’000

2018

R’000

Revenue 190 326 177 621 195 089

EBITDA 35 889 34 020 42 838

Core NPAT 16 116 18 956 29 836

13

3G – product range extension: full suite of tier 1 – 4 mobiles; African Focus

Despite the tough economic conditions in SA – 3G growing in a depressed retail

environment

Excellent growth (50%) in African operations – Namibia, Botswana, Mauritius

Biggest distributor of handsets outside of SA Operators

The only distributor in Africa that has Tier 1 – 4 handsets

Only 4PL mobile provider in Africa – full supply chain logistics provider

Further growth into financing hardware infrastructure into government entities

and decoders

3G Mobile Aug 2017– May 2018

R’000

Revenue 2 552 225

EBITDA 286 592

NPAT 196 204

14

Blue Label International – Mexico showing good potential

Mexico:

Mexican economy remains sluggish

Inflation rate expected to decrease from 6.77% to 4.0%

Revenue increased 30% to R4 billion

GP increased 39% to R43 million

EBITDA increased by 98% to almost break-even

EBITDA in positive territory from end-February 2018

NPAT improved 42% to -R43 million

Expecting NPAT profits for BLTS financial year ending 2019 Mexico 2016

R’000

2017

R’000

2018

R’000

Revenue 4 016 614 3 075 053 4 010 909

EBITDA (70 042) (27 358) (485)

NPAT (130 024) (74 395) (42 790)

56.0

57.0

58.0

59.0

60.0

61.0

62.0

63.0

64.0

65.0

66.0

Jan-1

6

Feb-1

6

Mar-

16

Apr-

16

May-1

6

Jun-1

6

Jul-16

Aug-1

6

Sep-1

6

Oct-

16

Nov-1

6

Dec-1

6

Jan-1

7

Feb-1

7

Mar-

17

Apr-

17

May-1

7

Jun-1

7

Jul-17

Aug-1

7

Sep-1

7

Oct-

17

Nov-1

7

Dec-1

7

Jan-1

8

Feb-1

8

Mar-

18

Apr-

18

May-1

8

Jun-1

8

Jul-18

Active Point of Sale devices 000, UNTs

Blue Label Share of losses is R21.9m in 2018

Cell C Interim Results

CELL C

Brett Levy

Highlights – H1 2018 Key performance indicators

+5%

YOY

Revenue

R7.8 Billion

+16%

YOY

EBITDA

R2.4 Billion

13%

of revenue

Capital Expenditure

R1 Billion

+11%

YOY

Service Revenue

R6.9 Billion

+31%

EBITDA Margin

YOY 3%

-33%

YOY

Net Loss After Tax

R0.6 Billion

Cell C – Strategy & Vision

1. DATA

• Data revenue increased by 20% whilst data traffic has increased

by 62% YOY

• Data revenue now makes up 52% of mobile revenue compared to

46% a year ago; and

• The effective price of data per MB has decreased by more than

28% YOY

4. FTTH

• Competitive products and pricing

• Exceptional organic growth aided by acquisitions going forward;

and

• The customer base grew from 3 733 in H1 2017 to 16 425 in H1

2018.

3. WHOLESALE

• Wholesale revenue increased by R164 million (or 51%) to R486

million YOY driven by the growth in the customer base; and

• Customer data usage in this area generated the bulk of the

revenue growth

2. VOICE

• Voice revenue decreased by 6% YOY in line with a decrease in

voice traffic by 10% YOY

• Effective price of outgoing voice per minute increasing by 3%

YOY; and

• Voice traffic carried by other means such as WhatsApp Calling

and other VoIP services.

5. MTN ROAMING AGREEMENT

• Vastly improved customer experience

• Fixed cost nature results in improved margin as volumes increase

• 4G coverage currently 30% after implementation 80%

Positive results

Summary of reported financial information

R’m H1 2018 H1 2017 % Change

Service revenue 6 861 6 196 11

Non-service revenue 914 1 189 -23

Total revenue 7 775 7 385 5

Gross margin 4 311 3 854 12

Gross margin % 55% 52% 3

EBITDA 2 378 2 048 16

EBITDA margin % 31% 28% 3

Net profit/(loss) after tax (645) (968) 33

Unpacking our subscribers

Million H1 2018 H1 2017 % Change

Total active subscribers 16.3 15.7 4

MVNO subscriber base 1.7 1.3 31

Total active data subscribers 12.1 12.6 4

Data revenue (R’m) 2 961 2 473 20

Capital expenditure (R’m) 1 016 494 >100

Increase in smartphone users YOY 11

Smartphones on our network (million) 9.0 8.1

Rand H1 2018 H1 2017 % Change

Total ARPU 72 70 3

Prepaid 56 56 -

Contract 227 209 9

13.0

0.4

0.7 0.4

1.7

H1 2018 Subscriber Base Composition

12.4

0.5

0.9 0.6

1.3

H1 2017 Subscriber Base Composition

Prepaid Postpaid Hybrid Broadband Wholesale

Other key performance indicators

Revenue by subscriber type

Segment (R mln) H1 2018 H1 2017 % change

Prepaid 3 657 3 363 9

Postpaid 906 882 3

Hybrid 721 774 7

Broadband 384 302 27

Mobile revenue 5 668 5 321 7

Other 183 162 13

Wholesale 486 322 51

Incoming 524 391 34

Service revenue 6 861 6 196 11

50.60%

32%

4.80%

12.60%

Service revenue market share

Vodacom MTN Telkom Cell C

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

H1 2016 H1 2017 H1 2018

Service revenue growth

Cell C Market

Revenue segmented

Segment (R mln) H1 2018 H1 2017 % change

Voice 2 243 2 389 6

Data 2 961 2 473 20

Other 465 458 2

Mobile revenue 5 668 5 321 7

Wholesale, FTTH

and other

669 485 38

Incoming 524 391 34

Service revenue 6 861 6 196 11

Equipment

revenue

914 1 189 23

Total revenue 7 775 7 385 5

Available facilities

Facility Estimated value Status

New ZAR facility R1.4 billion Approved post June 2018

Vendor financing R1.4 billion In progress

Shareholder support R1 billion In progress

Analysis of debt and finance cost

Period 2018 2017

1 January 12.39 13.73

30 June 13.72 13.09

Analysis of forex rates

R mln 2018 2017 2018 2017 2018 2017 2018 2017

Long term debt 6 418 17 914 427 591 145 32 17.8% 7.0%

Short term debt 1 528 417 111 28 14.5% 13.4%

Leases 5 465 5 081 447 451 16.4% 17.8%

Other finance 80 81 218 30- n.r. n.r.

Cash / interest income 674- 159- 33- 23- n.r. n.r.

Net debt excl. leases 7 272 18 172 505 677 363 2 17.2% 7.1%

Net debt inc. leases 12 737 23 253 952 1 128 363 2 16.9% 9.4%

HSF / CEC 1 795 1 959 185 207 18.3% 18.5%

BLT 2 700 309 22.9%

Debt Interest F-X Indicative interest rate

Leases include operating leases recognised as a finance lease, under IFRS 16, to the value of

R3 946 at June 2018 and R3 098 at June 2017.

24

The Way Forward – integration into the Blue Label Machine

Built exceptionally strong base

Original Blue Label business geared for strong

organic growth

Acquisitions adding to Blue Label ecosystem

Integration will generate efficiencies, new growth

opportunities and shareholder returns

Financial Highlights

Dean Suntup

26

Highlights

Increase in revenue to R26.8 billion

Increase in gross profit of 7% to R2.28 billion

Increase in EBITDA of 4% to R1.34 billion

Increase in core headline earnings of 30% to R1.03 billion

Increase in core headline earnings per share of 4% to 120.61 cents

Increase in cash generated from operating cash flows to R3.2 billion

27

Income Statement

May 2018 May 2017 Growth Growth

R’000 R’000 R’000 %

Revenue 26,800,265 26,469,581 330,684 1%

Change in inventories of finished goods (24,518,173) (24,340,581) (177,592) (1%)

Gross profit 2,282,092 2,129,000 153,092 7%

Other income 81,704 16,814 64,890 386%

Overheads (1,023,643) (858,073) (165,570) (19%)

EBITDA 1,340,153 1,287,741 52,412 4%

Depreciation, amortisation and impairment charges (242,604) (112,851) (129,753) (115%)

EBIT 1,097,549 1,174,890 (77,341) (7%)

Net finance expense (111,338) (25,183) (86,155) (342%)

Net profit before taxation 986,211 1,149,707 (163,496) (14%)

Taxation (331,069) (329,816) (1,253) 0%

Net profit after taxation 655,142 819,891 (164,749) (20%)

(Loss)/gain on associate measured at fair value (173,645) 160,200 (333,845)

Share of gains/(losses) from associates and joint ventures 565,812 (164,941) 730,753 443%

Minority interest (53,685) (33,896) (19,789) (58%)

Net profit attributable to equity holders of the parent 993,624 781,254 212,370 27%

28

Adjusted core headline earnings

May 2018

R'000

May 2017

R'000

Growth

R'000

Growth

%

Core headline earnings 1,032,016 795,684 236,332 30%

Core HEPS (cents) 120.61 116.24 4.36 4%

Core headline earnings adjusted for:

Share of losses, fair value loss and loan impairments from Oxigen 256,941 (35,484)

Share of profits from Cell C (569,475) -

Share of profits from 3G Mobile (156,722) -

Share of profits from Airvantage (2,627) -

Fair value gain on derivatives (3,688) -

Transaction interest and costs relating to 3G Mobile acquisition 28,128 -

IFRS interest expense relating to 3G Mobile/Airvantage 64,525 -

Cessation of settlement discounts and interest forfeiture 216,604 -

Once-off winding up cost of Africa Prepaid Services Group 20,737 -

Adjusted core headline earnings 886,439 760,200 126,239 17%

Adjusted core HEPS (cents) 132.56 113.91 18.65 16%

29

Cell C results

R'million

Cell C's losses for 5 months (1 Aug 2017 - 31 Dec 2017) (260)

Cell C's losses for 5 months (1 Jan 2018 - 31 May 2018) (522)

Cell C's losses for the 6 month period Jan 2018 -June 2018 (645)

Less June's reported loss 124

Cell C's loss before tax for 10 months (782)

Recognition of deferred tax asset 1,922

Cell C's net profit for 10 months 1,140

BLT's share of profit for 10 months at 45% 512

Adjustments: 59

IFRS 15 and 16 adjustments (6)

Share scheme adjustment 65

BLT's share of core earnings for 10 months at 45% 571

Headline adjustment (2)

BLT's share of core headline earnings for 10 months at 45% 569

30

3G Mobile results

Aug - Nov 2017 Dec - May 2018 10 Months

Equity Accounted Consolidated to May 2018

R’000 R’000 R’000

Revenue 1,165,196 1,387,029 2,552,225

Change in inventories of finished goods (1,025,718) (1,160,845) (2,186,563)

Gross profit 139,478 226,184 365,662

Other income 959 1,657 2,616

Overheads (34,504) (47,182) (81,686)

EBITDA 105,933 180,659 286,592

Depreciation, amortisation and impairment charges (1,749) (2,144) (3,893)

EBIT 104,184 178,515 282,699

Net finance expense 2,341 2,381 4,722

Net profit before taxation 106,525 180,896 287,421

Taxation (31,505) (59,712) (91,217)

Net profit after taxation 75,020 121,184 196,204

31

Cash flow

May 2018 May 2017

R’000 R’000

Cash generated by operations 3,588,780 1,753,991

Interest received 154,952 52,300

Interest paid (187,489) (105,518)

Taxation paid (368,099) (338,814)

Cash flows from operating activities 3,188,144 1,361,959

Cash flows from investing activities (7,758,379) (320,476)

Cash flows from financing activities 4,166,560 (279,795)

Increase/(decrease) in cash and cash equivalents (403,675) 761,688

Cash and cash equivalents at the beginning of the year 1,350,666 589,027

Translation difference 897 (49)

Cash and cash equivalents at the end of the period 947,888 1,350,666

-

5

10

OpeningBalance

Operating Financing Investing Closingbalance

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THANK YOU

Q & A