blue label telecoms · the telecoms landscape 3 • mobile market still highly skewered towards...

• Strategic Overview

AGENDA

Blue Label Telecoms

• Strategic Overview

• International Distribution

• Africa Prepaid Services Blue Label TelecomsInterim Results Presentation

for the half year ended 30 November 2009

Africa Prepaid Services

• Technology

• Value Added Servicesa ue dded Se ces

• Financial Overview

• South African Distribution

Group Structurep

South African Distribution International Distribution Technology Value Added Services

The Prepaid Company Gold Label Activi Technology Services Datacel

Crown Cellular Oxigen Services India -37 22%

Transaction Junction -60% Cellfind37.22% 60%

Ventury Ukash – 17.25% Activi Deployment Services Content Connect Africa

Matragon APS - 72% Mobile Services Companyg

Kwikpay

Virtual Voucher

APS DRC - 90%

APS NIGERIA - 51%

Blue Label Mexico - 70%

Sharedphone 50.1%

The Postpaid Company

Blue Label Australasia 50.5%

S T R A T E G I C O V E R V I E W100% unless otherwise stated

2

The Telecoms Landscape

3

p

• Mobile market still highly skewered towards prepaid users

• In 2009 SA mobile customer base grew by 13.8% (slightly lower than 16.8% growth rate recorded in 2007)

• BLT continues to meet the group’s revenue and gross profit targets due to:

- Continuing growth within target emerging markets

Increase in prepaid electricity offering- Increase in prepaid electricity offering

- Modest growth in SA cellular market

S T R A T E G I C O V E R V I E WSource: “SA Telecoms Report Q4 2009”, Business Monitor International Ltd

Global Footprint

4

p

Bricks & mortarTechnology offerings

Af h i t

United Kingdom

• Afghanistan• Bangladesh• Benin• Botswana• Cyprus• Czech Republic• France• Germany• Ghana• Guinea BissauKingdom

I di

• Greece• Haiti• Indonesia• Ireland• Israel• Italy• Ivory Coast• Lesotho• Liberia• Middle East Region

Mexico

DRC

India

Nigeria

• Middle East Region• Netherlands• Pakistan• Poland• Russia• Rwanda• Sierra Leone• Spain• Sudan• Swaziland

S d

South AfricaMozambique Australia

• Sweden• Syria• Tanzania• Togo• Uganda• USA• Yemen• Zimbabwe

BLT is focused on servicing the unbanked and badly banked market by providing access to

cost effective transactional services

Two strategies for international expansion:1. Bricks and Mortar2. Technology Offerings

S T R A T E G I C O V E R V I E W

Barriers to Entry

5

y

• 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


Highlights

6

g g

• Revenue up 11% to R8.4 billion

• EBITDA up 24% to R368 million

• Cash resources up at R1.96 billion

• Margins improved: Gross profit to 7.4% and EBITDA to 4.4%


7

International Distribution

Mark LevyJoint CEO

I N T E R N A T I O N A L D I S T R I B U T I O N

International Operations - Overview

8

p

• BLT’s vision is to derive 50% of revenue from outside of South Af i d 50% f f t l hAfrica and 50% of revenue from non telephony revenue

• BLT remains a leading provider of transactional services within emerging and developing marketsemerging and developing markets

• Continue to focus on expanding footprint

• Providing additional tokens of value, enhancing each country’s service offering and profitability

• Introduce all BLT’s products and services to existing markets


Africa Prepaid Services

9

p

• Changes around costs and efficiencies have led to improved profitability over past 6 months

• Cost allocation restructured successfully

• Commencement of trade in Nigeria and divesting from the DRC and Mozambique have improved profitability q p p y


Africa Prepaid Services (APS Group)

10

p ( p)

NigeriaNigeria


Africa Prepaid Services - Nigeria

11

p g

• Distribution channel rationalisation and decentralisationimproved operational efficiencies prior to trading

• Impetus on stimulating consumer usage to counteract churn• Handset promotional activity to drive subscriber growth• Handset promotional activity to drive subscriber growth• Growth dependent on:

- Correctly priced and positioned phonesCo ect y p ced a d pos t o ed p o es- Introduction of starter packs- Increased product and service offering- Increased marketing activity and consumer awareness

• APS has established the foundation for a sustainable business and continued presence in Nigeriaand continued presence in Nigeria


India

12

I diIndia


Oxigen India

13

g

• Improved revenue, higher margins, containment of expenses translated into significant reduction of losses

• Gross profit and EBITDA for the period improved due to:

- Improving technology and increasing effectiveness of distribution channels

- Launch cell phone vending – over 3,000 new activations in Oct 2009

- Implementation of direct to consumer model through State Bank of I di i O t b 2009India in October 2009

- Introduction of new products and services from non Telco sectors and introduction of direct top-up (PINless recharge)and introduction of direct top up (PINless recharge)

- Improved margins in airtime

M fit bl bill t b i


- More profitable bill payments business

Mexico

14

MexicoMexico


Blue Label Mexico

15

• The period closed with about 2,000 active POS terminals• Integrations into retail environments and previously under- or un-serviced channels,

e.g. petroleum forecourts• Intention to bolster “on the ground” representation to meet current demand for g p

devices and services• Cell phone vending and internet web based sales functions have been trialed and

will be launched to service all sectorswill be launched to service all sectors• Existing site revenues continue to grow month on month• Average sales per device have steadily increased over the period• Strategic, synergistic relationship with the World Organisation of Credit Unions

(WOCCU) provides extended reach to both parties• On track to achieve the deployment of several thousand POS devices by the end of p y y

the financial year• Discussions have commenced with several prepaid utility suppliers, bill payment

facilitators and Value Added Service providers

A F R I C A P R E P A I D S E R V I C E S

facilitators and Value Added Service providers

United Kingdom

16

g

United Ki dKingdom


Ukash

17

• Maintained expansion of issuing sites in new markets

• Further growth into known redemption environments like VOIP/telecoms and gaming

• Improved efficiencies within Ukash ensuring cost containment

• Strategic agreement concluded with Master Card• Strategic agreement concluded with Master Card

• “Re-load” and “Re-power” to replenish prepaid debit cards as well as mobile wallets and e-commerce type environments towell as mobile wallets and e-commerce type environments, to positively impact sales


Technology

T E C H N O L O G Y T E C H N O L O G Y

Activi – Switching Overview

19

g

POSTILION S it hElectricity Cellular Vouchers Banking3rd Party Suppliers SwitchElectricity Networks (Ukash) (TJ)

3rd

3 Party Suppliers

AEON Switch3

PartyHost to Host

3rd Party Hosts

STD Accounting

Interface Database

Accounting Package

AEONMerchant Terminal

Management System & EVD

Terminals Vending/ Self Service

Touch Screen

WEB Browser

Bulk Printing

Integrated 3rd Party

Retail devices


Retail devices

Projects / Core Capabilities

20

j p

EFT Switching Platform

Core IT Infrastructur

e & Operational

EVD/VAS

GroupMIS Platform

(and Accounting /

pSupport

Platform

Card

Accounting / Financial

Management)

Management Platform

(Gift Cards/ Loyalty)

Device D l t

Factory

Deployment & Support


Technology Highlights

21

gy g g

• FNB Lotto integration and delivery through Internet Banking, ATM and Mobile Banking

• Pick ‘n Pay Lotto integration and delivery through POS

• Accelerated Rollout of POS and Integrations in Mexico

• Deployment of core platforms in Nigeria

• Finalisation of electricity integrations in South Africay g

• Navision implementation well underway within SA Distribution and Mexicoand Mexico


The Mobile Services Company

22

p y

• BLT’s mobile services aggregation business• BLT s mobile services aggregation business• Services include transactional products and

services (airtime and electricity), own products and services (Cellfind products)products and services (Cellfind products) and 3rd party products and services (mig33 and Facebook)

• Services presented through several• Services presented through several channels including on-phone portal mibli™, stand-alone Java applications, WAP, Web & SMSSMS

• Supports 3rd party integrations such as:- Social networks (e.g. Facebook, Twitter etc.)- B2B (e g banking retail)- B2B (e.g. banking, retail)- B2B2C (e.g. direct-to-consumer services for

3rd parties)• Provides a single point of integration for


g p gproducts, services and transactions

The Mobile Services Company / 2

23

p y

• A fully featured mobile wallet is live inside• A fully featured mobile wallet is live inside MSC allowing customer to:

- Make payments- Make deposits (including Ukash)- Shop for goods and services

Make withdrawals- Make withdrawals- Participate in rewards and loyalty schemes- Perform money transfers

• Future:- Launch of Blue Label merchant services

E t i f ti i- Extension of aggregation services- Expansion of mibli™ user base- Growth in MSC services to 3rd parties


p

24

Value Added Services

V A L U E A D D E D S E R V I C E S

Datacel

25

• Severely affected by economic downturn resulting in large scale retrenchments

• Blue Label Call Centre was closed down due to operational inefficiencies and ongoing lossesinefficiencies and ongoing losses

• Velociti continued to diversify its client base to ensure a more balance spread of incomep

• Growth plans in Velociti were shelved pending market recovery

• CNS were equally affected by negative market sentiment, with q y y g ,insurance companies reviewing the direct marketing model and adjusting down commissions

• Blue Label Data Services performed well


Cellfind

26

• Continues to deliver annuity income through Vodacom and MTN LBS and WASP aggregation businesses

• Investment in developing generic interfaces to LBS

• Cellfind’s Value Added Services (traffic services, security, tracking devices and weather services) continue to show robust growthgrowth

• Music downloads are well entrenched and growing monthly

• Expansion of B2B relationships with large corporate customers


27

Financial Overview

David RivkindCFO

F I N A N C I A L O V E R V I E W

Financial highlights

28

g g

Growth

Revenue R8.4bn

Gross profit R621m

11%

19%p

EBITDA R368m

Operating profit R299m

%

24%

20%Operating profit R299m

NPAT R177m

20%

(11%)

Core earnings R194m

Headline earnings per share 23.38 cents

(10%)

(10%)

Core earnings per share 25.59 cents

Cash generated from operations R316m

(9%)

Xx%


Financial Overview

segmental profile• South African distribution

• International distribution

• Value added services

• TechnologyTechnology

Financial overview

30

Income statement 30 Nov 2009 30 Nov 2008 GrowthR’000 R’000 %

Revenue 8 401 960 7 573 458 11%Cost of inventories sold (7 780 524) (7 049 489)Gross profit 621 436 523 969 19%Gross profit % 7 40% 6 92% 6%Segmental revenue

R 000 R 000 %

Gross profit % 7.40% 6.92% 6%Other income 36 460 25 226Overheads (290 067) (253 599)EBITDA 367 829 295 596 24%EBITDA % 4.38% 3.90% 12%Depreciation amortisation and impairment charges (68 499) (45 377)

South African distribution 7 591 164 7 088 140 7%International distribution 674 866 282 944 139%Value added services 122 490 192 074 (36%)Depreciation, amortisation and impairment charges (68 499) (45 377)Operating profit 299 330 250 219 20%Net finance income 394 53 739Finance income 63 499 103 858Finance expense (63 105) (50 119)Net profit before taxation 299 724 303 958

( )Technology 13 440 10 300 31%Total 8 401 960 7 573 458 11%

% ContributionNet profit before taxation 299 724 303 958Taxation (100 874) (90 186)Net profit after taxation 198 850 213 772 (7%)Share of loss of associates and joint ventures (11 897) (14 082)Minorities interest (10 038) (1 532)Net profit after taxation and minorities interest 176 915 198 158 (11%)

% Contribution

South African distribution 90.3 93.6International distribution 8.0 3.7Value added services 1 5 2 6p ( )Amortisation on intangibles raised through business combinations net of tax 17 293 17 768Core net profit after taxation 194 208 215 926 (10%)Earnings per share for profit attributable to equity holders (cents)- Basic 23.31 25.86 (10%)- Headline 23.38 26.06 (10%)

Value added services 1.5 2.6Technology 0.2 0.1Total 100 100


Financial overview

31


Revenue 8 401 960 7 573 458 11%Cost of inventories sold (7 780 524) (7 049 489)Gross profit 621 436 523 969 19%Gross profit % 7 40% 6 92%

R 000 R 000 %

Gross profit % 7.40% 6.92%Other income 36 460 25 226Overheads (290 067) (253 599)EBITDA 367 829 295 596 24%EBITDA % 4.38% 3.90% 12%Depreciation amortisation and impairment charges (68 499) (45 377)

Segmental gross profit

South African distribution 461 045 392 157Depreciation, amortisation and impairment charges (68 499) (45 377)Operating profit 299 330 250 219 20%Net finance income 394 53 739Finance income 63 499 103 858Finance expense (63 105) (50 119)Net profit before taxation 299 724 303 958

International distribution 92 518 36 628Value added services 61 946 87 479Technology 5 927 7 705Total 621 436 523 969Net profit before taxation 299 724 303 958Taxation (100 874) (90 186)Net profit after taxation 198 850 213 772 (7%)Share of loss of associates and joint ventures (11 897) (14 082)Minorities interest (10 038) (1 532)Net profit after taxation and minorities interest 176 915 198 158 (11%)

Gross profit %

South African distribution 6.07 5.53p ( )Amortisation on intangibles raised through business combinations net of tax 17 293 17 768Core net profit after taxation 194 208 215 926 (10%)Earnings per share for profit attributable to equity holders (cents)- Basic 23.31 25.86 (10%)- Headline 23.38 26.06 (10%)

International distribution 13.71 12.95Value added services 50.57 45.54Technology 44.10 74.81Total 7.40 6.92


Financial overview

32


Revenue 8 401 960 7 573 458 11%Cost of inventories sold (7 780 524) (7 049 489)Gross profit 621 436 523 969 19%Gross profit % 7 40% 6 92% 6%

Segmental EBITDA margins EBITDA margin %South African distribution 4.77 4.19International distribution 9.39 6.65

R 000 R 000 %

Gross profit % 7.40% 6.92% 6%Other income 36 460 25 226Overheads (290 067) (253 599)EBITDA 367 829 295 596 24%EBITDA % 4.38% 3.90%Depreciation amortisation and impairment charges (68 499) (45 377)

Value added services 15.22 24.56Total trading operations 5.29 4.80

S t l EBITDADepreciation, amortisation and impairment charges (68 499) (45 377)Operating profit 299 330 250 219 20%Net finance income 394 53 739Finance income 63 499 103 858Finance expense (63 105) (50 119)Net profit before taxation 299 724 303 958

Segmental EBITDA

South African distribution 361 746 296 965 22%International distribution 63 349 18 823 237%Value added services 18 641 47 176 (61%)Net profit before taxation 299 724 303 958Taxation (100 874) (90 186)Net profit after taxation 198 850 213 772 (7%)Share of loss of associates and joint ventures (11 897) (14 082)Minorities interest (10 038) (1 532)Net profit after taxation and minorities interest 176 915 198 158 (11%)

Value added services 18 641 47 176 (61%)Total trading operations 443 736 362 964 22%Technology (35 561) (22 114)Corporate (40 346) (45 254)Total support (75 907) (67 368) 13%p ( )Amortisation on intangibles raised through business combinations net of tax 17 293 17 768Core net profit after taxation 194 208 215 926 (10%)Earnings per share for profit attributable to equity holders (cents)- Basic 23.31 25.86 (10%)- Headline 23.38 26.06 (10%)

Total support (75 907) (67 368) 13%Total 367 829 295 596 24%


Financial overview

33



R 000 R 000 %

Gross profit % 7.40% 6.92% 6%Other income 36 460 25 226Overheads (290 067) (253 599)EBITDA 367 829 295 596 24%EBITDA % 4.38% 3.90% 12%Depreciation amortisation and impairment charges (68 499) (45 377)Depreciation, amortisation and impairment charges (68 499) (45 377)Operating profit 299 330 250 219 20%Net finance income 394 53 739Finance income 63 499 103 858Finance expense (63 105) (50 119)Net profit before taxation 299 724 303 958Net profit before taxation 299 724 303 958Taxation (100 874) (90 186)Net profit after taxation 198 850 213 772 (7%)Share of loss of associates and joint ventures (11 897) (14 082)Minorities interest (10 038) (1 532)Net profit after taxation and minorities interest 176 915 198 158 (11%)

• South African distribution earned finance income of R64m • Imputed interest receivable on debtors balances – R20m (R14m in prior period)• Interest on liquid working capital – R44m• Decline in finance income net of IFRS adjustments was R46m mainly due to 500 basis points decline in interest ratesp ( )Amortisation on intangibles raised through business combinations net of tax 17 293 17 768Core net profit after taxation 194 208 215 926 (10%)Earnings per share for profit attributable to equity holders (cents)- Basic 23.31 25.86 (10%)- Headline 23.38 26.06 (10%)

• Decline in finance income, net of IFRS adjustments, was R46m, mainly due to 500 basis points decline in interest rates.


Financial overview

34



R 000 R 000 %

Gross profit % 7.40% 6.92% 6%Other income 36 460 25 226Overheads (290 067) (253 599)EBITDA 367 829 295 596 24%EBITDA % 4.38% 3.90% 12%Depreciation amortisation and impairment charges (68 499) (45 377)Depreciation, amortisation and impairment charges (68 499) (45 377)Operating profit 299 330 250 219 20%Net finance income 394 53 739Finance income 63 499 103 858Finance expense (63 105) (50 119)Net profit before taxation 299 724 303 958Net profit before taxation 299 724 303 958Taxation (100 874) (90 186)Net profit after taxation 198 850 213 772 (7%)Share of loss of associates and joint ventures (11 897) (14 082)Minorities interest (10 038) (1 532)Net profit after taxation and minorities interest 176 915 198 158 (11%)

• R60m relates to imputed interest payable on creditors’ balances in terms of IFRS (R48m in prior period)

p ( )Amortisation on intangibles raised through business combinations net of tax 17 293 17 768Core net profit after taxation 194 208 215 926 (10%)Earnings per share for profit attributable to equity holders (cents)- Basic 23.31 25.86 (10%)- Headline 23.38 26.06 (10%)


Financial overview

35



R 000 R 000 %


• Oxigen Services India• Reduction in losses of 68% due to:

• growth in revenue by R130m (21%); and Depreciation, amortisation and impairment charges (68 499) (45 377)Operating profit 299 330 250 219 20%Net finance income 394 53 739Finance income 63 499 103 858Finance expense (63 105) (50 119)Net profit before taxation 299 724 303 958

• reduction in overheads of 46%.

• Ukash• Comparatives related to two months only as Ukash was acquired in October 2008Net profit before taxation 299 724 303 958Taxation (100 874) (90 186)Net profit after taxation 198 850 213 772 (7%)Share of loss of associates and joint ventures (11 897) (14 082)Minorities interest (10 038) (1 532)Net profit after taxation and minorities interest 176 915 198 158 (11%)

• The reversal of a deferred tax asset of R3.7m further impacted on their negative contribution.


Oxigen Services India Pvt Ltd (4 595) (14 285)Smart Voucher Limited (Ukash) (7 542) (195)Other 240 398Total (11 897) (14 082) 16%


Financial overview

36



Core net profit

South African distribution 288 231 260 858 11%

R 000 R 000 %


South African distribution 288 231 260 858 11%International distribution 13 508 8 714 55%International distribution associates (12 137) (14 480) 16%Value added services (2 638) 31 787 (108%)Total operations 286 964 286 879 -Depreciation, amortisation and impairment charges (68 499) (45 377)Operating profit 299 330 250 219 20%Net finance income 394 53 739Finance income 63 499 103 858Finance expense (63 105) (50 119)Net profit before taxation 299 724 303 958

Total operations 286 964 286 879 -

Technology (47 246) (24 036) (97%)Corporate (45 510) (46 917) 3%Total support (92 756) (70 953) (31%)Net profit before taxation 299 724 303 958Taxation (100 874) (90 186)Net profit after taxation 198 850 213 772 (7%)Share of loss of associates and joint ventures (11 897) (14 082)Minorities interest (10 038) (1 532)Net profit after taxation and minorities interest 176 915 198 158 (11%)

Total support (92 756) (70 953) (31%)

Total 194 208 215 926 (10%)Core earnings per share 25.59c 28.18c (9%)



Financial overview

37

Balance sheet 30 Nov 2009 31 May 2009R’000 R’000

ASSETS

Non-current assets (2) 645 479 736 634

Property, plant and equipment 129 387 105 011

R 000 R 000

1. Total assets

• Increased by R369m (10%)Property, plant and equipment 129 387 105 011

Intangible assets and goodwill 398 338 460 325

Investments in associates and joint ventures 95 221 109 837

Financial assets at amortised cost 18 321 54 096

2. Non-current assets

• Increase in PPE of R24m, net of depreciation and disposals, was mainly due to capex on POS devices

Deferred taxation assets 4 212 7 365

Current assets (3) 3 599 713 3 139 218

Financial assets at fair value 10 10

A il bl f l fi i l t 861

devices

• Decrease in intangibles and goodwill of R62m

• Decrease in investment in associates of R14mAvailable for sale financial asset 861 -


Inventories 376 422 384 361

Loans receivable 33 618 29 920

associates of R14m.

• Net decrease in unactivated starter packs of R36m (Financial assets at amortised cost)

• Reversal of deferred tax asset ofoa s ece ab e 33 6 8 9 9 0

Trade and other receivables 1 137 461 898 571

Current tax assets 2 637 2 101

Cash and cash equivalents 1 959 749 1 756 806

Reversal of deferred tax asset of R3m

3. Current assets

• Increased by R460m.

• Stock turn averaged 3 44 times


Total assets (1) 4 245 192 3 875 852• Stock turn averaged 3.44 times

• Debtors collection – 24 days

Financial overview

38


EQUITY AND LIABILITIESCapital and reserves 2 422 762 2 244 120Share capital share premium and treasury shares (1) 4 352 767 4 379 175

1. Share capital, share premium and treasury shares

D li d d t h f

R 000 R 000

Share capital, share premium and treasury shares ( ) 4 352 767 4 379 175Restructuring reserve (1 843 912) (1 843 912)FCTR (17 116) (13 399)Transaction with minority reserve (914 782) (914 399)Sh b d t 19 511 10 602

• Declined due to purchase of treasury shares for the group’s share incentive scheme

Share-based payment reserve 19 511 10 602Minorities interest 14 074 (9 252)Retained earnings 812 220 635 305Non-current liabilities 57 211 69 664

2. Total liabilities

• Increased by R191m• Average creditor terms – 40 days

Current liabilities 1 765 219 1 562 068Trade and other payables 1 701 605 1 518 853Current tax liabilities 61 203 28 039Interest bearing borrowings 2 411 15 176te est bea g bo o gs 5 6Total liabilities (2) 1 822 430 1 631 732Total equity and liabilities 4 252 192 3 875 852


Financial overview

39

Cash flow 30 Nov 2009R’000R 000

Cash flows from operating activities (1) 316 434

C h fl f i ti ti iti (34 958)1. Cash flows from operating

activitiesCash flows from investing activities (34 958)

Cash flows from financing activities (23 730)

Increase in cash and cash equivalents 257 746

activities

• Operating profit growth and focus on working capital management resulted in R316m of cash flows from operating activities

Cash and cash equivalents at the beginning of the period 1 756 806

Translation difference (8 594) 2. Cash on hand at the end of the period accumulated to R1.96 billion

Cash and cash equivalents in subsidiaries disposed of (46 209)

Cash and cash equivalents at end of period(2) 1 959 749


Financial overview

40

Dividends

N di id d h b d l d i li ith ’ t t t d liNo dividend has been declared in line with group’s present stated policy


South African Distribution

Brett LevyBrett LevyJoint CEO

S O U T H A F R I C A N D I S T R I B U T I O N

Group Structurep

South African Distribution International Distribution Technology Value Added Services

The Prepaid Company Gold Label Activi Technology Services Datacel

Crown Cellular Oxigen Services India -37 22%

Transaction Junction -60% Cellfind37.22% 60%

Ventury Ukash – 17.25% Activi Deployment Services Content Connect Africa

Matragon APS - 72% Mobile Services Companyg

Kwikpay

Virtual Voucher

APS DRC - 90%

APS NIGERIA - 51%

Blue Label Mexico - 70%

Sharedphone 50.1%

The Postpaid Company

Blue Label Australasia 50.5%

S O U T H A F R I C A N D I S T R I B U T I O N100% unless otherwise stated

RICA - Total Subscriber Registrations = 1 814 382

43

g

Total Registrations per Network( l ti )

Average Registrations per Week

900000

1000000

(cumulative)

1988

2

8175

8155

25 4

2045

1

1866

0

06

600000

700000

800000

261 13

046

1423

6

1532

7

1 1

167 2

1217

2

1652

4

1700

300000

400000

500000

6938

8903 97

53

8912

11

0

100000

200000

019/01 20/01 21/01 22/01 23 -

25/01MTN Vodacom Cell C Virgin


RICA - Total Agent Registrations = 6165

44

g g

Total AgentsCumulative Registrations across Net orks

6160

61802500000

Networks

6100

6120

6140

1500000

2000000

6060

6080

6100

1000000

1500000

6000

6020

6040

500000

598019/01 20/01 21/01 22/01 23 - 25/01

0


Products

45

• Algoa bus ticketing

• Lotto

• Ukash

• PINless

• Cover2Go


Cover2Go

46

• Successfully launched pilot Cover2Go, a prepaid insurance product, in Umtata in November 2009

• Product well received• Product well received

• Target LSM to ensure consumers remain loyal and maintain paying their premiums


Electricity by Region – November Comparison

160 000 000 00

y y g p

120 000 000 00

140,000,000.00

160,000,000.00

100,000,000.00

120,000,000.00

60,000,000.00

80,000,000.00

20,000,000.00

40,000,000.00

-200711 200811 200911

Eastern Cape Free State Gauteng Kwa Zulu Natal Limpopo Mpumalanga North West Northern Cape Western Cape


South Africa

48

South Af iAfrica


Conclusion

49

• Nigeria and India progressing

• Value Added Services underperforming

• ‘Product to the People’• Product to the People

• Distribution channel building

• Introducing new products and services

• Core South African Distribution segment remains robust


Blue Label TelecomsBlue Label TelecomsInterim Results Presentation

Thank youyQ&A

Financial overview

51


ASSETS

Non-current assets (2) 645 479 736 634

Property, plant and equipment 129 387 105 011

R 000 R 000

1. Total assets

• Increased by R369m (10%)Property, plant and equipment 129 387 105 011

Intangible assets and goodwill 398 338 460 325

Investments in associates and joint ventures 95 221 109 837


2. Non-current assets

• Increase in PPE of R24m, net of depreciation and disposals, was mainly due to capex on POS devices

Deferred taxation assets 4 212 7 365

Current assets (3) 3 599 713 3 139 218

Financial assets at fair value 10 10

A il bl f l fi i l t 861

devices

• Reversal of deferred tax asset of R4m

• Decrease in intangibles and goodwill of R62mAvailable for sale financial asset 861 -


Inventories 376 422 384 361

Loans receivable 33 618 29 920

goodwill of R62m

• Net decrease in unactivatedstarter packs of R35m (Financial assets at amortised cost)

• Decrease in investment inoa s ece ab e 33 6 8 9 9 0

Trade and other receivables 1 137 461 898 571

Current tax assets 2 637 2 101

Cash and cash equivalents 1 959 749 1 756 806

Decrease in investment in associate of R14m.

3. Current assets

• Increased by R460m.

• Stock turn averaged 3 44 times


Total assets (1) 4 245 192 3 875 852• Stock turn averaged 3.44 times

• Debtors collection – 24 days

blue label telecoms · the telecoms landscape 3 • mobile market still highly skewered towards...

Documents