Gross Profit » Earnings Continue to Escalate: 2,500,000 • Revenue to R26.3 Billion 2,000,000

RESULTS for the year ended 31 May 2017 Group highlights for the year ended 31 May 2017

Group Gross Profit » Earnings continue to escalate: 2,500,000 • Revenue to R26.3 billion 2,000,000

• Gross Profit by 19% to R2.2 billion 1,500,000

• EBITDA by 7% to R1.3 billion 1,000,000 • Earnings per share by 14% to 117.92 cents 500,000 • Headline earnings per share by 18% to 117.98 cents 0 • Core headline earnings per share by 17% to 120.09 cents 2013 2014 2015 2016 2017 • Dividend declared by 11% to 40 cents per share

Dividends declared per share » A new era dawns in developing a rich ecosystem - acquisitions 45 40 35 30 25

Cents 20 40 36 15 31 25 27 10 5 0 2013 2014 2015 2016 2017

HIGHLIGHTS South Africa Distribution Brett Levy – Joint CEO

South African Distribution Segment: • Prepaid Airtime, Data and Starter/SIM packs • Handsets and Tablets • Market • Retail Distribution Channel • Prepaid Electricity, Water and Gas • Ticketing • Fintech and other Value Added Services

Acquisitions of 45% of Cell C and 100% of 3G Mobile

Shareholder Profile Financial and Operational Highlights

4 Prepaid Airtime Revenue Growth

3,500 » Revenue consistent at R25.7 billion 3,000

» PINless top-up revenue increases by R2 billion to R6.1 billion, Millions 2,500 2,000

when imputed to revenue effective growth is 7% 1,500 2017 » Gross profit up 21% to R1.9 billion 1,000 2016 500 » Gross profit margins expand from 6.15% to 7.43% - » Core net profit up 19% to R893 million

Direct Top Up - PINless Airtime Growth

700 600

Millions 500 400

300 2017 200 2016 100 -

SOUTH AFRICAN DISTRIBUTION Prepaid Airtime, Data, Starter/SIM packs

5 Airtime

» Maintaining 700k to 1m new SIM connections per month: 10% 20% • consumers improving understanding of market dynamics 10% Corporate Sales • changing cell number rather than porting Independents • MNOs migrating 2G users to 3G devices and smartphone uptake Formal Retail 60% Petroleum

» Growth in sales: • convergence of voice, data and content with network offerings

• benefits of utilising data analytics Data • rolling-out new Android terminals 10% • airtime from corporate/banking channel 35% 24% • data from independent and corporate channels Corporate Sales Independents Formal Retail

31% Petroleum

SOUTH AFRICAN DISTRIBUTION Handsets and Tablets

» Existing Tier 3 hardware selling under Boost, Verssed and Blaupunkt brands: • comprising handsets, phones, tablets, phablets and POS devices • augmented with smart watches, fitness bands and educational robots • Boost brand redesigned and features upgraded

» Existing Tier 4 bolt-on, Reware: • sources, refurbishes and distributes pre-owned smartphones • rapidly growing market • outlets in Sandton and Braamfontein

» Acquisition of 3G Mobile brings new Tiers 1 and 2 constituting a complete hardware business, housed under one roof

SOUTH AFRICAN DISTRIBUTION Market

» “Magnet for foot traffic”

» Main market/informal - 85% of revenue: • achievements in direct distribution methods in rural areas • truck & footsoldier/gig-rig reach • retention and acquisition of quality merchants • shifts in consumer buying patterns to prepaid • ensuring our merchants do more our products and services

» Formal market - 15% of revenue: • growth in food and pharmaceutical sectors • Chat 4 Change sales up 30% • growing distribution in retail channel

» Strengthening our management team

SOUTH AFRICAN DISTRIBUTION Retail Distribution

» Integration strategy of distributing hardware products in retail channels » Route to market includes Edcon, Ideals, Choppies, Dischem and Take-a-lot » Edcon customers utilise cash or group approved credit facilities » Challenging and competitive retail landscape » Blue Label Connect: • merchandise includes post paid, hybrid, VAS - wholesale and retail • mobile wallet and money transfer services » Edgars Connect: • “One stop connectivity destination store across the nation” • Extensive range of mobile products and services, specialising in: • mobile devices, tablets, wearables, accessories, gadgets, home automation & security, wifi routers and laptops • Cell C post paid contracts • airtime, data, prepaid electricity, bill payments • ticketing, including sport, travel, events, expos, entertainment & lifestyle shows, and Hollywood bets • rolling-out stand alone stores in rural areas, centres and malls, 64 stores currently open

SOUTH AFRICAN DISTRIBUTION Prepaid Electricity

9 Prepaid Electricity - Revenue

1,400

» Market*: 10m prepaid meters installed in addressable market of 19m 1,200

» Commissions earned up 9% to R215 million Millions 1,000 800 » Equates to R14 billion in sales revenue 2017 600 2016 » Growth drivers: 400 2015 • Prepaid24 – enhancing retail online reach 200 • Utilities World - back-end integration into municipalities - • re-award of distribution contracts • distribution on behalf of additional municipalities Electricity • retail and corporate/banking channels

15% 32% Corporate Sales Independents 36% *Source: Eskom 17% Formal Retail Petroleum

SOUTH AFRICAN DISTRIBUTION Prepaid Electricity, Water and Gas

UniPIN Redemptions

100 900 » UniPIN’s redeemed: 90 800 80 700

• value R825 million 70 600 R’millions

60 Thousands 500 50 400 • quantity (volume) 8.3 million vouchers 40 30 300 » 8 years of growth 20 200 10 100 » Prepaid Water and Gas: - - • increasing interest from service providers

Quantity (thousands) Value (R millions)

Prepaid Electricity – 8 year perpetual growth in revenue

1,400,000,000 1,200,000,000 1,000,000,000 800,000,000 R’ 600,000,000 400,000,000 200,000,000

Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17

Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16

Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17

Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

Aug-09 Aug-10 Aug-11 Aug-12 Aug-13 Aug-14 Aug-15 Aug-16

SOUTH AFRICAN DISTRIBUTION Ticketing

» Ticketing solutions for events, sports and transport sectors » Ticketpro strategy - market differentiation; brand awareness; market share » Raising national presence: • available in >1,000 stores • entrenched in our merchant base and across retail channels • ticketing and access management for ~600 events, such as: • Premier soccer league, Telkom Knockouts, DSTV Delicious, Getaway Show, Joburg Day, MTN Joyous Celebration 21, Miss SA 2017, FIA World Rallycross of South Africa, The TOPS at Spar Wine Show, Whisky Live, Wedding Expo, Mama Magic Expo, Decorex • Growth in transport ticketing sales - Putco: • commuter bus service, available through >200 outlets in rural areas • serving >250,000 passengers/month » Launched Ticketpro consumer mobile app and Ticketpro Travel » >2.3 million event tickets sold » 74 different venues » Revenue increasing

SOUTH AFRICAN DISTRIBUTION Fintech Products and other Value Added Services

» Bill Payments • transaction volumes increasing ~200% • striving to meet enhanced requirements of bill issuers • constantly adding more issuers to bill payments engine

» Debit and Credit Card Acquiring • white labelling for loyalty programmes

» Wallets and Money Transfers* • money transfers launched across Edcon Group • evolving into payment ecosystem: • replacing debit and credit cards • greater convenience and lower pricing for consumers • tailwinds from low-cost smartphones

* Frost & Sullivan estimates 60% of adults in Africa are unbanked

SOUTH AFRICAN DISTRIBUTION Acquisition of 45% stake in Cell C

» Strategy for developing a rich ecosytem » 45% stake in Cell C for R5.5 billion effective 2 August 2017 » Rationale for vertical integration with Cell C: • creating value: ROI in medium term • margin defence: existing trading relationship • commercial synergies: multiple shared services » Funding through hybrid of own cash and vendor placements » ‘Business as usual’ in constructive relationships with other MNOs

SOUTH AFRICAN DISTRIBUTION Acquisition of 3G Mobile

» Announced 27 June and effective 2 August 2017 » Distributor of all major Tier 1 & 2 mobile device and handset manufacturers: • Apple, Samsung, Huawei, ZTE and Nokia » Also offers financing for the mobile handset element of post paid contracts » Earnings accretive » R1.9 billion acquisition structured in two stages: • initial: 47.37% for R900 million (R250 million in BLU shares + R650 million in cash) • subsequent: 52.63% for R1 billion » 3G Mobile complements our existing new and refurbished hardware business » Integrates our approach to distributing complete range of handsets and tablets » Enhances our ecosystem

SOUTH AFRICAN DISTRIBUTION Shareholder Analysis as at 11 August 2017

Top Shareholders: Notes: » Allan Gray – 18.31% » Shareholders holding >2% of issued capital account » Shotput – 11.43% for ~60% of total issued share capital » B Levy – 7.25% » ADR programme through BNY Mellon » M Levy – 6.41% » Market capitalisation R14.5 billion » 36One – 4.89% » Sanlam – 3.41% » Richmark – 3.14%

» Investec – 2.52% Beneficial Shareholders – 31 May 2017

» Alexander Forbes – 2.27% Free Float – 31 May 2017

Free float 57% Strategic holders 41% Below threshold 2% South Africa 86% USA 9% UK 3% Rest of World 2%

SOUTH AFRICAN DISTRIBUTION International Mark Levy – Joint CEO

International Distribution Segment: • Oxigen Services India • Blue Label Mexico

Mobile Segment

Solutions Segment

Big Data

Technology

Group Prospects Oxigen Services India – Synopsis

17 Total Revenue (GTV)

Demonetisation 185 178 175 » Government’s frequent introduction of new legislation and technology 168 173 152 146 163134 166 165 166 163 156 129 124 128 » Government demonetises currency in November 2016 141 143 142 146 135 135 100

» Requires fintech sector to modify strategies $m » Developing offline opportunities and scaling back on-line » Revenue constant » Product mix by contribution to revenue: Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May FY 15-16 FY 16-17 • financial services - 73% • airtime & others - 17%

Segmental (Revenue) AEPS on Micro ATM Oxigen Wallet (App) 3% 2% Airtime & DTH 21%

Bill Payment 3%

OMTS 35% Travel & others 0%

BC Banking Business 36%

INTERNATIONAL 17 Oxigen Services India – Offline Airtime Recharge

» Traditional, POS, offline products » Rolling out micro-ATM POS to access last mile: • biometric scanner for Aardhaar authentication • connected to NPCI enabling cash deposits and withdrawals • expansion into retail fuel forecourts, rural fertilizer industry and dairy co-ops

Oxigen’s ecosystem: - connects 170 banks - reaches >200,000 retail outlets - serves >150 million unique customers

INTERNATIONAL 18 Oxigen Services India – Offline Banking

19 Business Correspondent Banking

» Services akin to a bank 70 Demonetisation 63 65 64 63 56 » Comprehensive payments and financial services solutions 50 48 50 46 56 39 55 53 49 » Connects to NPCI centralised bill payments system (Bharat) 44 45 37 40 34 36 » 24/7 link to Immediate Payment System (IMPS) 32 32 18

» Business Correspondent banking – revenue increase 23% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May FY 15-16 FY 16-17

» Money transfers and remittances: Oxigen Money Transfer Services • partnerships with State Bank of India and Ratnaker Bank Limited 73 68 64 • revenue under pressure due to demonetisation 61 62 60 70 70 66 67 65 54 51 66 • now connecting India and Nepal 61 62 63 64 49 64 41 55 32 29

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

FY 15-16 FY 16-17

INTERNATIONAL 19 Oxigen Services India – Online e-Wallets

» e-wallets landscape evolutionising: • Government’s UPI simplifies transfers between merchants and consumers • wallets must be linked to bank accounts • competitive market requires deep marketing spend • peers offering discounting/cash backs

» Oxigen adopting B2B2C approach » Enterprise route of acquiring subscribers by white labelling platform » Loyalty Service Platform with retailer Future Group » >30 million customers

INTERNATIONAL 20 Blue Label Mexico - Highlights

Total Revenue » Mobile penetration ~69% in >122 million population » Consistent growth strategy to build market share: • expanding POS network

• distributing more products MillionsMXP » Revenue contracted but trend is rising

» Gross profit increase of R26.6 million (32%) Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May » Share of loss narrows from R63 million to R37 million FY 15-16 FY 16-17

Gross Profit

Telcel Movistar AT&T OMV

Market Share * (Prepaid) Q 1 71,4% 21,9% 6,5% 0,2% MXP MillionsMXP

*source: IFTEL Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

FY 15-16 FY 16-17

INTERNATIONAL 21 Blue Label Mexico – Active Devices

22 ARPU

10,000 » 81,000 devices deployed 9,000 » 61,000 active POS devices* 8,000 7,000 » Our POS is a magnet for foot traffic with growth in sales/store: 6,000 • longer duration POS in market = lower churn 5,000 • data analytics 4,000 3,000 • cash collection for merchants 2,000 1,000 0 » Higher ARPU’s: Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May FY 15-16 FY 16-17 • bill payments, card payments and food vouchers • merchant base offering more products and services

* active is defined as devices registering a transaction during the past month

INTERNATIONAL 22 Blue Label Mexico – Airtime and SIM cards

23 Revenue Airtime » Airtime 500 450 • main revenue driver 400 350 • blended margin improving 300 250 • 70% of devices transact airtime top-ups 200

MXP MillionsMXP 150 100 50 0 » SIM Cards Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

• revenue growth FY 15-16 FY 16-17 • distribution on behalf of MNO’s and MVNO’s • extensive route to market Revenue SIMS • education and awareness training • gaining traction whilst leading the way in maturing market • business model includes income stream from: . sales of SIM cards . annuity earned on SIM cards

2015-2017

INTERNATIONAL 23 Blue Label Mexico – Bill Payments

Revenue Services » Another year of growth » Revenue up 59% » Total transactions up 23% » 30% of merchants transacting bill payments » Marketing campaigns underline convenience of paying bills at Red Qiubo stores Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May FY 15-16 FY 16-17

Total Services Transactions

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

FY 15-16 FY 16-17

INTERNATIONAL 24 Blue Label Mexico – Financial Services

Credit and Debit Revenue Credit and Debit Transactions » Growth continues » Incentivising merchants to increase terminal activity

» Credit and Debit Card Acceptance and Acquiring Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May » Partnership with Visa and CitiBanamex FY 15-16 FY 16-17 FY 15-16 FY 16-17 » Revenue growth up 55% » No. of transactions up 42%

Food Vouchers Revenue Food Vouchers Transactions » Food Vouchers » Servicing Edenred, Si Vale, Sodexo and Inbursa customers » Revenue growth up 77% » No. of transactions almost doubled Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

FY 15-16 FY 16-17 FY15-16 FY16-17

INTERNATIONAL 25 Mobile Segment

» Core net profit contribution R56 million » Via Media » Cellfind Content, entertainment and information for mobile phones Messaging, VAS and financial services for mobile phones: through subscriptions: • largest enabler in target market of sub-Sahara • predominant contributor to net profit contribution • doubled sending capacity to >2,000 SMS’s/second • B2C and B2B platforms • 3.2 billion SMS’s sent FY17, up 23% • extensive infotainment catalogues available in 8 African • founding member of WASPA countries and 10 languages • cross-leveraging product suites with partners » Size of A2P market:

Converged communications: VAS (traditional LBS): Financial services: Entertainment and information Total SMS market size contracts 20% Includes customers of MNO’s, Focus on airtime advance, handset content: to 1.2 billion - 1.5 billion SMS’s /month Insurers, Medical Aids credit, remittances, statements, >R3 billion market size. 3G mobile payments etc. subscribers in sub-Sahara driving growth of new and rich media content.

MOBILE 26 Solutions Segment

» Core net profit R19 million » Blue Label Data Solutions – data scientists supplying analytical services » Supplying recent, clean and accurate data » 86 million consumer-base and expanding: • generating ~1 million unique qualifying leads up >100% • sending 329 million SMSs up 26% » POPI & FAIS Acts and TCF principles » Rebuild opt-in register every month

» Expanding database:

86 million unique 42 million ID 2.5 million right 2 million email 18 million on opt- cell numbers numbers linked to party contacts addresses linked in register full contact details to ID’s

SOLUTIONS 27 Big Data

» Creating insight to customer profiles and preferences » Upselling and cross selling various bouquets of products and services » Intelligently understanding consumer behaviour

SOLUTIONS 28 Technology

Transaction Volumes » Proprietary platforms supporting growing neutral aggregation » Enhanced Android devices roll-out » Transaction Junction expanding banking solutions across merchant base » Stable platforms » Transactions peaking annually in December

6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 2015 2016 2017 » Blue Label Ventures: AEON EFT BLM Total • Boutique business accelerator launched. • Assists technical entrepreneurs in post revenue scale-ups • Nurtures from incubation phase into more mature businesses

TECHNOLOGY 29 Group Prospects

30 » Blue Label is one of the primary distribution channels for Cell C’s products and services. The acquisition 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 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 1 and tier 2 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 post- paid 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.

» Blue Label Mexico 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 various bouquets of products and services that Blue Label has to offer through its distribution channels by intelligently understanding consumer behaviour.

» Value added services, including the provision of short term finance for products and services required by consumers, are initiatives that are currently under consideration.

PROSPECTS 30 Financial Review Dean Suntup – Financial Director Highlights

Increase in Increase in Increase in Increase in headline gross profit EBITDA of revenue to earnings per of 19% to 7% to R1.3 R26.3 billion share of 18% to R2.2 billion billion 117.98 cents

Increase in Increase in Net asset core headline Increase in cash and cash value per earnings per dividend per equivalents by share share of 17% share of 11% R762 million amounted to to 120.09 to 40 cents to R1.35 R7.32 cents billion

FINANCIAL 32 Income Statement

May 2017 May 2016 Growth Growth R’000 R’000 R’000 % Revenue 26,311,875 26,204,722 107,153 0% Change in inventories of finished goods (24,139,293) (24,375,028) 235,735 1% Gross profit 2,172,582 1,829,694 342,888 19% Other income 16,814 126,294 (109,480) (87% ) Overheads (858,073) (715,429) (142,644) (20% ) EBITDA 1,331,323 1,240,559 90,764 7% Depreciation, amortisation and impairment charges (112,851) (98,183) (14,668) (15% ) EBIT 1,218,472 1,142,376 76,096 7% Net finance expense (60,833) (20,211) (40,622) (201% ) Net profit before taxation 1,157,639 1,122,165 35,474 3% Taxation (332,037) (318,783) (13,254) 4% Net profit after taxation 825,602 803,382 22,220 3% Gain on associate measured at fair value 160,200 - 160,200 Share of loss from associates and joint ventures (164,941) (71,770) (93,171) (130% ) Minority interest (33,896) (40,022) 6,126 15% Net profit attributable to equity holders of the parent 786,965 691,590 95,375 14%

FINANCIAL 33