UNAUDITED

INTERIM RESULTSFor the half year ended 30 November 2017

Increase in revenue to R13.5 billion*

Increase in PINless GTV by 27% to R12.4 billion

Increase in EBITDA of 9% to R778 million

Increase in earnings per share of 110% to 167.43 cents

Increase HEPS of 109% to 166.68 cents

Increase in core headline earnings per share of 108% to 168.42 cents

Increase in cash generated from operating activities to R3.1 billion

Acquisitions - Cell C and 3G Mobile

Acquisition – Airvantage after period end

* On including PINless top-ups, revenue increased by 10%

G r o u p h ig h lig h t s f o r t h e h a lf y e a r e n d e d3 0 N o v e m b e r 2 0 1 7

2

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Nov 2013 Nov 2014 Nov 2015 Nov 2016 Nov 2017

R'0

00

EBITDA

-

2

4

6

8

10

12

14

Nov 13 Nov 14 Nov 15 Nov 16 Nov 17

R'b

illi

on

Gross PINless transactional values**

**includes gross electricity and PINless top-ups

SOUTH AFRICAN DISTRIBUTION

BRETT LEVY – JOINT CEO

‘Going for Growth’

Prepaid airtime, data and starter packs

Handsets and Tablets

Prepaid electricity and water

Ticketing

Financial and other Value Added Services

Cell C

Revenue up 2% to R13.3 billion

PINless top-up revenue increase by R1.2 billion to R4 billion:

• when imputed to revenue effective growth is 10%

Gross profit margin declined slightly to 7.68%:

• early settlement discounts forfeited to conserve cash

• partly offset by marketing rebates received

Growth plan

O p e r a t io n a l a n d F in a n c ia l H ig h lig h t s

4

-

500

1,000

1,500

2,000

2,500

3,000

3,500

Mil

lio

ns

Prepaid Airtime Revenue Growth

2017

2016

-

100

200

300

400

500

600

700

800

Mil

lio

ns

Direct Top Up - PINless Airtime Growth

2017

2016

Management team of experienced distribution professionals:

• systematic and clinical review of all business aspects

• “Going for growth” initiative

Ensuring customer centric approach

Identifying and focusing on growth pillars

Main/informal market:

• hub and spoke model

• small retail outlets

Relaunched brand identity - Blu Approved

‘G o in g f o r g r o w t h ’

5

Maintaining up to 800,000 new SIM connections/month:

• reinforcing market strengths of stability, trust and payment convenience

Campaigning by truck & footsoldier/gig-rigs

Exceptional growth in corporate channel’s banking sector

Maintaining constructive relationships with all networks

Competitive pricing from networks through bundled offerings

Current market:

• competitive pricing through bundled offering

• demand for data –> convergence of voice, data and content

• consumers migrating to smartphones driving data consumption

P r e p a id A ir t im e , D a t a a n d S t a r t e r p a c k s

6

Distributing a complete range of handsets and tablets from tier 1 to tier 4:

3G Mobile (tiers 1 and 2):

• distributing top-end smartphones and tablets - Apple, Samsung, Huawei, ZTE and Nokia; and

• financing for handset element of post paid and hybrid contracts – by CEC

• 47.37% acquired 2 Aug 2017– R900 million; 52.63% acquired 6 Dec 2017– R1 billion

• funding of remaining tranche on track

• tough market conditions

Existing handset and tablet business (tier 3):

• handsets, phones, tablets, POS devices, smart watches, fitness bands - Boost, Verssed,

Blaupunkt, Go, Vibe and Pulse

• online radio app Touch HD loaded onto hardware

Reware (tier 4):

• capitalising on market shifting from feature phones to inexpensive smartphones

• sources, refurbishes, certifies, repackages and distributes pre-owned smartphones

H a n d s e t s a n d T a b le t s

7

Distributing hardware ‘in the last mile’:

• mobile devices, tablets, wearables, accessories, gadgets, smart home

concepts & automation, wifi routers and laptops

Edgars Connect:

Stand alone store with unique proposition connecting to a mix of customer

needs, across a range of products:

• BLU Approved products and services

• Specialist services and expert advice

• 64 stores open, with 3 more launches shortly

R e t a il D is t r ib u t io n

8

Growth continues:

• commissions earned up 21% to R124 million

• equates to R8.4 billion in sales, up 20%

Growth drivers:

• Securing additional prepaid electricity contracts:

Buffalo City and NW405 Municipalities

• Bill Payments services:

Ekurhuleni and Cape Town Municipalities

P r e p a id E le c t r ic it y a n d W a t e r

9

-

200

400

600

800

1,000

1,200

1,400

1,600

Mil

lio

ns

Prepaid Electricity - Revenue

2017

2016

2015

Ticketing for events, sports and transport sectors

Growing market share at 28%

Long-term ticketing arrangements:

• Spar, FMCG chain

• Putco, commuter bus service:

transporting 250,000 passengers/month

Ticketpro at >200 merchant outlets on key routes

2.9m tickets sold

82 different venues served

Revenue up by 79%

T ic k e t in g

10

Rapid growth in digital capabilities across banking sector:

• e.g. 71% of all transactions through self-help devices at Capitec

Bill Payments:

• processing ~535,000 transactions/month for 187 bill issuers

• revenue up by 25%

• number of transactions increased by 32%

F in a n c ia l a n d o t h e r V a lu e A d d e d S e r v ic e s

11

>100%

C e ll C – A t u r n a r o u n d s t o r y u n d e r p in n e d b y s u s t a in a b le g r o w t h

12

Service Revenue

R’bn EBITDA

R’bn

8.8

10.210.8

11.813.1

2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

63.2%

>100%

5.9% 9.3%

RECAPITALISATION PROCESS

12%

0.8 0.4

1.93.1

7.8

2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

R e p o r t

e d >100%

15.9%

2017

Innovation-driven revenue

growth

Price-driven revenue

growth

2012-13

2015-16

Recapitalisation:

• New shareholders - equity R7.5 billion

• Debt for equity conversion - R9 billion

• Restructured debt - R6 billion

2018 & beyond

• Innovation

• Service

• Quality

• People

3.7

-0.7

C e ll C – H ig h lig h t s : F Y 2 0 1 7 K e y p e r f o r m a n c e in d ic a t o r s

13

+12% YOY

Service Revenue

R13.2 billion

+151% YOY

EBITDA

R7.8 billion

+660%

Net profit after tax

R4.1 billion

+7% YOY

Revenue

R15.7 billion

+29% YOY

EBITDA Margin

50%

8% of revenue

Capital Expenditure

R1.2 billion

Summary of reported financial information

C e ll C - P o s it iv e r e s u lt s F Y 2 0 1 7

14

R’m 2017 2016 % Change

Service revenue 13 147 11 752 12

Non-service revenue 2 568 2 894 11

Total revenue 15 715 14 646 7

Gross margin 8 170 7 454 10

Gross margin % 52% 51% 1

EBITDA 7 793 3 106 >100

EBITDA margin % 50% 21% 29

Net profit after tax 4 114 541 >100

NORMALISED FINANCIAL KEY PERFORMANCE INDICATORS

C e ll C – F Y 2 0 1 7 R e s u lt s

15

R’m7 months 2017

Pre-recap5 months 2017

Post-recapTotal 2017

Dec2016 Dec

% Change

Total revenue 9 013 6 702 15 715 14 646 7

Normalised EBITDA 1 960 1 694 3 654 2 892 26

Normalised EBIT 792 796 1 588 1 121 42

Net finance costs -2 661 -1 064 -3 724 -801 >100

Normalised net (loss)/profit before tax -1 869 -267 -2 136 320 >100

Tax - 2 111 2 111 - -

Normalised net (loss)/profit -1 869 1 844 -25 320 >100

INTERNATIONAL DISTRIBUTION

MARK LEVY – JOINT CEO

Technology

Oxigen Services India

Blue Label Mexico

Mobile Segment

Solutions Segment

Group Prospects

T e c h n o lo g y in o u r e c o s y s t e m

Capabilities and offerings advance, strengthened by acquisitions

AEON platform expanding by incremental layering offering more solutions

Positive inflection - technology stack re-energising business models

Customers gaining access to our products and services

Ecosystem is de-commoditised with VAS driving customer experience

Direct correlation in technology, foot traffic and sales

AEON links suppliers and partners

Technology stack extends reach and opportunities

• 1.5 billion transactions/month

17Large Store Revenue growth with increased BLT Category Penetration

Medium Store Revenue growth with increased BLT Category Penetration

O x ig e n S e r v ic e s In d ia - S y n o p s is

Core businesses provides financial services and a universal payments platform:

• offline: POP devices in retail outlets

• online: e-wallet platform for subscribers

Government’s digitisation of cash economy

Guidelines and legislation for Fintech sector

Oxigen pursuing offline opportunities

Demonetisation impacting revenue and profitability

18

Jun July Aug Sep Oct Nov

Total Revenue (GTV)

H1 16-17 H1 17-18

O x ig e n S e r v ic e s In d ia – O f f lin e A ir t im e R e c h a r g e a n d B a n k in g

Serving >200,000 retail merchants nationwide

Expanding digital footprint by rolling out micro-ATM’s

Aligns with Government’s financial inclusion agenda

Requires capital investment

With ICICI Bank in tier 2 and 3 cities:

• enabling cash deposits, withdrawals, bill payments, travel ticketing

• act as service delivery and payment points

Business Correspondent Banking services:

• revenue growth 14%:

• Adarsh Credit Co-operative Society with 809 branches

• Goa State Co-operative Bank with 67 branches

19

Jun July Aug Sep Oct Nov

Business Correspondent Banking

H1 16-17 H1 17-18

O x ig e n S e r v ic e s In d ia – O n lin e W a lle t s

Online e-wallet platform for subscribers

B2B2C approach of acquiring subscribers by white labelling:

• loyalty service platform with retailer Future Group with >30m customers

• Amazon gift cards, Fast Tag recharge and bus booking & ticketing

20

B lu e L a b e l M e x ic o - H ig h lig h t s

Share of loss continues to narrow from R22.1 million to R10.5 million

Revenue improve 27% to R1.9 billion

Gross Profit increase 73% by R35 million

Increasing transactional throughput by continuous process improvements

92,000 devices installed

21

$350

$360

$370

$380

$390

$400

$410

$420

$430

$440

Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17

MX

P M

illi

on

s

Revenue

Revenue

$-

$5

$10

$15

$20

$25

Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17

MX

P M

illi

on

s

Gross Profit

Gross Profit

76,000

78,000

80,000

82,000

84,000

86,000

88,000

90,000

92,000

94,000

Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17

Th

ou

san

ds

Deployed Terminals

Deployed Terminals

B lu e L a b e l M e x ic o – A ir t im e t o p -u p a n d S IM c a r d s

Airtime

Revenue growth

Higher ARPU’s

Merchants benefiting from enhanced platform

SIM cards

Distribution gaining traction

Market maturing gradually

Focus on driving commercial opportunities, risk mitigation,

improving customer experience

Sims offer competitive advantage

Combining our experience with Grupo Bimbo’s distribution network

22

Jun Jul Aug Sep Oct Nov

SIMS Revenue

2016 2017

Jun Jul Aug Sep Oct Nov

ARPU

2016 2017

Jun Jul Aug Sep Oct Nov

Airtime Revenue

2016 2017

B lu e L a b e l M e x ic o – B ill P a y m e n t s a n d F in a n c ia l S e r v ic e s

Bill Payments

Growth continues steadily

Revenue increasing 34%

Total transactions up >30%

>41% of devices transact in bill payments

Financial Services

Transacting across 26% of terminal base

Total number of transactions increased by 32%

Revenue increased by 68% through compounding growth in:

• credit and debit card acquiring

• food voucher distribution

23

Jun Jul Aug Sep Oct Nov

Revenue Bill Payments

2016 2017

Jun Jul Aug Sep Oct Nov

Revenue Financial Services

2016 2017

M o b ile S e g m e n t

Complete ecosystem of services for mobile phone users

Encompasses Integrated communications, VAS infotainment & entertainment; Financial services, Marketing

Core net profit up by 8% to R27.5 million

Via Media:

• extensive catalogue of content, products and services:

lifestyle, sport, news, weather, religion, dating

• to mobile phone users across B2B and B2C platforms

• across 9 African countries and in 10 languages

• derives annuity income

Cellfind:

• comprises converged communications, mobile financial services and value added services, such as LBS:

• bulk SMS distribution increasing to ~260 million per month

• focus on local and international SMS traffic

24

A ir v a n t a g e

Expanding mobile financial services

Initial 60% acquired wef 2 Jan 2018 for R151 million

Customers acquire airtime in a different manner

Airvantage bears 100% risk

Algorithmic systems create behavioural scores -> present most appropriate offer to subscriber

>100 million transactions monthly, sales >$1 billion to date across 12 emerging markets

Recent launch with TIM Brazil, covering 93% of urban area

25

S o lu t io n s S e g m e n t

Data scientists supplying analytical services

Core net profit increase by 21% to R13.7 million

Growth driven by:

• sending 717m SMS’s, and

• generating 2.3m unique leads

Ensuring database of >37 million opt-in entries:

• relevant

• compliant

• POPI and FAIS Acts

JV with United Financial Group:

• United Call Centre Solutions – 330 agents

• marketing Value Added Services

26

G r o u p P r o s p e c t s

‘Going for growth’. In line with the Group’s strategy to continue expanding distribution footprint and product offerings, focus will be

on further penetration of the informal market, through the provision of POS devices to the multitude of independent traders who do

not have the tools to market and sell Blue Label’s products and services.

Blue Label is one of the primary distribution channels for Cell C products and services. Our investment in Cell C provides a

compelling value proposition to the Group, to Cell C and its customers, through vertical integration that will afford both companies

the opportunity to realise synergies in product distribution. Cell C now has a sustainable capital structure to deliver on its strategic

objectives.

3G Mobile is one of Africa’s largest distributors and financiers of mobile devices and handsets to major retailers and cellular

network providers. It has distribution rights for all major tier one and tier two mobile devices and allied products from the

manufacturers thereof. Through its wholly owned subsidiary, Comm Equipment Company, it provides the financing of the mobile

handset component of postpaid and hybrid contracts to Cell C, with the capability of extending such services to other networks and

channels. These functions supplement Blue Label’s strategic objectives to provide value added services to both Cell C and its own

customer base. 3G Mobile provides the ideal platform to combine Blue Label’s low cost and certified pre-owned mobile handset

divisions into a consolidated group. The acquisition thereof is both earnings accretive and provides a solid foundation for

distribution into the burgeoning low cost smartphone market.

27

G r o u p P r o s p e c t s - 2

The proprietary software developed by Airvantage will afford Blue Label the opportunity to apply such intellectual capital

within the Group, thereby enabling it to broaden its customer base. It is the intention of Airvantage to emulate its robust

business model internationally in the near future.

Through Blue Label’s entrenched relationship with numerous municipalities on whose behalf prepaid electricity is sold and

the proceeds thereof collected, it is the intention to supplement these services with a full turn-key revenue management

system, credit control services, audits, meter replacements and new installations.

Following Blue Label Mexico’s continuous improvement in operations, it is expected to provide a positive contribution to

Group profitability, given its consistent growth in revenue generation at sustainable improved gross profit margins and

compounding annuity revenue generated from starter packs.

“Big Data” creates the opportunity to upsell and cross sell the various bouquets of products and services that Blue Label

has to offer, through its distribution channels, by intelligently understanding consumer behaviour.

28

FINANCIAL OVERVIEW

DEAN SUNTUP – FINANCIAL DIRECTOR

F in a n c ia l - H ig h lig h t s

30

INCREASE IN REVENUE TO INCREASE IN HEADLINE EARNINGS PER SHARE

R13.5 billion* 166.68 cents

INCREASE IN EBITDA TO INCREASE IN CORE HEADLINE EARNINGS PER SHARE

R778 million 168.42 cents

INCREASE IN EARNINGS PER SHARE TO INCREASE IN CASH GENERATED FROM OPERATING ACTIVITIES TO

167.43 cents R3.1 billion

*On inclusion of the gross amount generated on "PINless top-ups", the effective increase equated to 10%

F in a n c ia l – A d ju s t e d C o r e H e a d lin e E a r n in g s

31

Nov 2017 Nov 2016 Growth Growth

R’000 R’000 R’000 %

Core headline earnings 1,356,780 552,425 804,355 146%

Weighted average number of shares 805,590,826 683,824,520

Core HEPS (cents) 168.42 80.78 87.64 108%

Core headline earnings adjusted for:

Share of profits from Cell C excluding amortisation on intangible assets (927,643) -

Share of profits from 3G Mobile excluding amortisation on intangible assets (35,824) -

IFRS interest expense relating to 3G Mobile acquisition 21,194 -

Cessation of settlement discounts and interest forfeiture 91,414 -

Share of losses from India and fair value gain (556) (135,577)

Adjusted core headline earnings 505,365 416,848 88,517 21%

Adjusted weighted average number of shares 668,535,753 666,664,546

Adjusted core HEPS (cents) 75.59 62.53 13.06 21%

- Acquisition of Cell C R5.5bn

- CAPEX loan to Cell C R740m

- Acquisition of PPE and

intangibles R46m

- Bond notes R79m

- Contingent considerations

R28m

- Share issue R2.75bn

- Dividends R371m

- Treasury shares R29m

F in a n c ia l – C a s h F lo w

32

Nov 2017 Nov 2016

R’000 R’000

Cash generated by operations 3,297,462 945,583

Interest received 43,702 25,693

Interest paid (40,642) (65,819)

Taxation paid (184,522) (196,074)

Cash flows from operating activities 3,116,000 709,383

Cash flows from investing activities (6,345,713) (206,902)

Cash flows from financing activities 2,350,250 (259,607)

(Decrease)/increase in cash and cash equivalents (879,463) 242,874

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

Translation difference - (36)

Cash and cash equivalents at the end of the period 471,203 831,865

F in a n c ia l – M a t e r ia l c a s h o u t f lo w s

33

R’000

Cell C acquisition (5,500,000)

Placement of shares 2,750,000

Cell C capital expenditure loan (740,000)

Dividend paid in September 2017 (349,804)

Treasury shares purchased for employee share scheme (28,846)

$6m bond notes (79,050)

Contingent consideration settlements (27,868)

Material cash outflows to November 2017 (3,975,568)

Viamedia final acquisition payment (26,415)

Capital contribution to Oxigen India (36,200)

Airvantage acquisition (150,732)

Material cash outflows post November 2017 to February 2018 (213,347)

Total material cash outflows to February 2018 (4,188,915)

THANK YOU

Q & A

SUPPLEMENTARY INFORMATION

S u p p le m e n t a r y – B lu e L a b e l f a c t s h e e t

Founded in 2001

Business model underpinned by long-term distribution contracts

Products and services include

• airtime, starter packs, data and content

• handsets and tablets

• electricity and water

• ticketing

• financial and value added services

45% held in mobile network operator Cell C

Other investments in India and Mexico

Maiden dividend paid in September 2010

CSI spend R8.5 million and training, development & bursaries R9.4 million (FY17)

36

S u p p le m e n t a r y – C h a r t in g o u r g r o w t h

37

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Nov 2013 Nov 2014 Nov 2015 Nov 2016 Nov 2017

R'm

illi

on

Revenue

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

Nov 2013 Nov 2014 Nov 2015 Nov 2016 Nov 2017

Cen

ts

NAV per share

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Nov 2013 Nov 2014 Nov 2015 Nov 2016 Nov 2017

R'0

00

EBITDA

-

2

4

6

8

10

12

14

Nov 13 Nov 14 Nov 15 Nov 16 Nov 17

R'b

illio

n

Gross PINless transactional values*

*includes gross electricity and PINless

G r o u p O p e r a t in g s t r u c t u r e a s a t 3 0 N o v e m b e r 2 0 1 7

38

Transaction Junction (60%)

100% unless otherwise stated* Post period end** 52.63% acquired post period end

Blue Label

South Africa

The Prepaid Company

Ventury

Blue Label Distribution

Edgars Connect (40%)

Cigicell (74%)

Ticketpro

Blue Label Connect

Prepaid24 (50.1%)

Utilities World (25.1%)

Reware (50.4%)

Blue Label Mobile

SupaPesa Africa (50%)

Simigenix (51%)

Panacea (51%)

Cellfind

Viamedia (75%)

Supa Pesa South Africa (50%)

Blue Label One

Blue Label

International

Blue Label Mexico (47.56%)

Oxigen Online Services

India (58.18%)

Gold Label Investments

Oxigen Services India

(58.88%)

Mpower

(21.6%)

Blue Label Solutions

CNS Call Centre

Blue Label Data Solutions (81%)

Datacision(50%)

Datacel

United Cell CentreSolutions (50%)

Corporate

Blue Label Accelerator

3G Mobile **

Cell C (45%)

Airvantage (60%) *

S u p p le m e n t a r y – B a r r ie r s t o e n t r y

Lag times in negotiating supplier and customer contracts can hinder integration

Long term contracts – ensure there is no cheaper pricing in the market

Lock-out periods for processing new and developing existing technologies. Roll-out of devices takes time

Time: as customers prioritise systems’ integration for their own needs/objectives and/or products and services (customer,

forecourt, municipality, utility, bank, retailer)

Technology platforms – AEON (proprietary, agnostic, neutral aggregator, plug ‘n play, proven, scalable, no fees to others)

and Postilion (banking and financial services grade)

Expanding distribution channel: >150,000 POP’s in SA, ~200,000 POP’s in India, and >92,000 POP’s in Mexico

Reputable local partners is key to business model

Trust and relationships of over 15 years in business

These are some of our greatest assets, achieved through long-term contracts with customers and suppliers, which fortify our

foundations

These same barriers can hinder us entering new markets

39

S u p p le m e n t a r y – P e e r g r o u p

40

» B lu e L a b e l T e le c o m s

- J S E lis t e d

» B la c k h a w k N e t w o r k

N a s d a q lis t e d

» C y b e r p la t - R u s s ia n

b a s e

» E c k o h – A IM lis t e d

» E u r o n e t W o r ld w id e -

N a s d a q lis t e d

» N E T 1 – N a s d a q

lis t e d

» P a y p a l – N a s d a q

lis t e d

» P a y P o in t – L S E lis t e d

» Q iw i – N a s d a q lis t e d

» In C o m m – p r iv a t e ly

h e ld in U S A

» Cigicell / Blue Label Telecoms

» Conlog

» Contour

» Easypay

» ONTEC

» Landis & Gyr

» Syntell

» Red Qiubo / Blue Label Mexico

» ATM

» OXXO

» Sucursales bancarias

» Pemex

» WalMart

» Elektra - Banco Azteca

» Telecomms

» 7-Eleven

» Circulo K

» HSBC

» Famsa

* Descending in size

*

» Ticketpro / Blue Label

Telecoms

» Big Concerts / Computicket

» Computicket / Shoprite

» Itickets

» Nuticket

» Quicket

» Webticket / PicknPay

VERTICAL

PEERSHORIZONTAL PEERS

ELECTRICITY

HORIZONTAL PEERS

TICKETING

NETWORKS BY POS DEVICE

MEXICO*

S u p p le m e n t a r y – S h a r e h o ld e r P r o f ile a t 3 1 J a n u a r y 2 0 1 8

41

Top Shareholders:

• Allan Gray clients – 15.9%

• Shotput – 11.4%

• B Levy – 7.29%

• M Levy – 6.4%

• Old Mutual – 5.3%

• Investec AM – 3.1%

• PIC – 3.1%

• Sanlam – 2.9%

• All Weather – 2.1%

• Standard Bank – 2%

Notes:

• Shareholders holding >2% of issued capital account for 52% of total

issued share capital

• ADR programme through BNY Mellon

• Market capitalisation R10.6 billion (at R12/share)

• Ranked 23rd in Sunday Times Top 100 Companies over 5 years (Nov 2017)

Beneficial Shareholders - 31 Jan 2018

South Africa 83% USA 8% UK 3% Rest of World 6%

Free Float - 31 Jan 2018

Free float 66%

Strategic holders 32%

Below threshold 2%

THANK YOU