Full Year 2026 Blu Label Unlimited Group Ltd Earnings Call

August 26, 2026

Dean Suntup: Good afternoon, ladies and gentlemen. The year ended 31 May 2026, was a significant year for Blu Label. Against a challenging consumer backdrop, we remain focused on disciplined execution and continue to make progress in building a simpler, more focused group. Our core platform continued to generate cash, supported by disciplined cost management, improved liquidity, and a continued focus on the quality of earnings and returns on invested capital. The most significant milestone during the year was the successful restructuring and subsequent listing of Cell C. This was a transformational transaction for the group. It significantly de-risked our exposure to Cell C, reduced complexity, and improved the visibility of future earnings. At the same time, our retained shareholdings ensured that Blu Label continues to participate in the future value creation of Cell C.

Speaker #1: Our core platform continues to generate cash, supported by disciplined cost management, improved liquidity, and a continued focus on the quality of earnings and returns on invested capital.

Speaker #1: The most significant milestone during the year was the successful restructuring and subsequent listing of Cell C, a transformational transaction for the group. It significantly de-risked our exposure to Cell C, reduced complexity, and improved the visibility of future earnings.

Speaker #1: At the same time, our retained shareholdings ensure that Blu Label continues to participate in the future value creation of Cell C. Importantly, the listing also provides Cell C with a transparent market valuation, strengthened governance, and independent access to capital.

Dean Suntup: Importantly, the listing also provides Cell C with a transparent market valuation, strengthened governance, and independent access to capital. As a result, Blu Label's relationship with Cell C has fundamentally changed. We are now positioned as a strategic shareholder focused on supporting long-term value creation rather than providing ongoing operational and financial support. During the year, the board also resumed dividend distributions, declaring and paying an interim dividend of ZAR 0.435 per share. A final dividend of ZAR 0.10 per share has subsequently been declared, bringing the total dividend for the year to ZAR 0.5356 per share. In addition to the dividend, the board has also decided to return further capital to shareholders through a share repurchase program. This will be implemented under the general authority granted by shareholders and will remain subject to prevailing market conditions.

Speaker #1: As a result, Blu Label's relationship with Cell C has fundamentally changed. We are now positioned as a strategic shareholder, focused on supporting long-term value creation rather than providing ongoing operational and financial support.

Speaker #1: During the year, the Board also resumed dividend distributions, declaring and paying an interim dividend of 43.5 cents per share. A final dividend of 10 cents per share has subsequently been declared, bringing the total dividend for the year to 53.5 cents per share.

Speaker #1: In addition to the dividend, the Board has also decided to return further capital to shareholders through a share repurchase program. This will be implemented under the general authority granted by shareholders and will remain subject to prevailing market conditions.

Speaker #1: The Board has also adopted a formal dividend policy, which will be reviewed annually. Under this policy, we will target an annual distribution of between 30% and 50% of core headline earnings generated by our underlying businesses, excluding Blu Label's share of Cell C earnings.

Dean Suntup: The board has also adopted a formal dividend policy, which will be reviewed annually. Under this policy, we will target an annual distribution of between 30% and 50% of core headline earnings generated by our underlying businesses, excluding Blu Label's share of Cell C earnings. These distributions may take the form of a cash dividend, distributions in specie or share repurchases, or an appropriate mix thereof as determined by the board at the time. Cell C will be treated separately and is therefore additional to this distribution target. Of the cash dividends received from Cell C, we intend to return between 50% and 70% to Blu Label shareholders, either through a cash dividend or, where appropriate, through a distribution of Cell C shares of equivalent value. The balance will be retained and applied to reducing the group's debt.

Speaker #1: These distributions may take the form of a cash dividend, distributions in specie, or share repurchases, or an appropriate mix thereof, as determined by the board at the time.

Speaker #1: Cell C will be treated separately and is therefore additional to this distribution target. Of the cash dividends received from Cell C, we intend to return between 50% and 70% to Blu Label shareholders.

Speaker #1: Either through a cash dividend or, where appropriate, through a distribution of Cell C shares of equivalent value. The balance will be retained and applied to reducing the group's debt.

Speaker #1: This will lower finance costs, strengthen the balance sheet, and, over time, increase the cash available for future distributions to shareholders. I will now take you through the key highlights of our normalized financial performance before concluding with an overview of the balance sheet and our cash position.

Dean Suntup: This will lower finance costs, strengthen the balance sheet, and over time increase the cash available for future distributions to shareholders. I will now take you through the key highlights of our normalized financial performance before concluding with an overview of the balance sheet and our cash position. The group's financial results for the year ended 31 May 2026 were materially impacted by a series of strategic transactions. These included the acquisition of control of Cell C, the implementation of pre-listing restructuring initiatives, and the subsequent partial disposal pursuant to the listing. As a result, Cell C transitioned from being equity accounted as an associate to consolidated as a subsidiary, and thereafter reverted to associate status. These transactions introduced a level of accounting complexity that created volatility in the underlying performance of the group.

Speaker #1: The Group's financial results for the year ended 31st of May 2026 were materially impacted by a series of strategic transactions. These included the acquisition of control of Cell C, the implementation of pre-listing restructuring initiatives, and the subsequent partial disposal pursuant to the listing.

Speaker #1: As a result, Cell C transitioned from being equity accounted as an associate to being consolidated as a subsidiary, and thereafter reverted to associate status. These transactions introduced a level of accounting complexity that created volatility in the underlying performance of the group.

Speaker #1: Although the related accounting treatments are required, they are not indicative of Blu Label's core operational performance. Accordingly, to provide a clearer understanding of the Group's core performance, I will focus primarily on our normalized financial information, which excludes the financial results of Cell C, the contribution from Comm Equipment Company for the six-month period to 30 November 2025, impairments and losses on disposals recognized during the year, and all extraneous items arising from the Cell C restructuring transaction and subsequent listing.

Dean Suntup: Although the related accounting treatments are required, they are not indicative of Blu Label's core operational performance. Accordingly, to provide a clearer understanding of the group's core performance, I will focus primarily on our normalized financial information, which excludes the financial results of Cell C, the contribution from Comm Equipment Company for the six-month period to 30 November 2025, impairments and loss on disposals recognized during the year, and all extraneous items arising from the Cell C restructuring transaction and subsequent listing. This approach provides a more relevant basis for which to evaluate the group's sustainable earnings profile and ongoing performance. Normalized financial performance. On a normalized basis for the year ended 31 May 2026, the financial highlights were as follows: revenue of ZAR 9.4 billion, as only the gross profit earned on pinless top-ups, prepaid electricity, ticketing, and universal vouchers are recognized as revenue.

Speaker #1: This approach provides a more relevant basis for which to evaluate the group's sustainable earnings profile and ongoing performance. Normalized financial performance: on a normalized basis for the year ended 31st May 2026, the financial highlights were as follows: revenue of R9.4 billion, as only the gross profit earned on pinless top-ups, prepaid electricity, ticketing, and universal vouchers are recognized as revenue. The imputed gross revenue generated from these sources amounted to R99.9 billion.

Dean Suntup: The imputed gross revenue generated from these sources amounted to ZAR 99.9 billion. Gross income of ZAR 2.555 billion. EBITDA of ZAR 923 million. Net profit after tax of ZAR 677 million. Headline and core headline earnings of ZAR 681 million. Core headline earnings of 75.33 cents per share. A final dividend of 10 cents per share, bringing the total dividend for the year to 53.56 cents per share, and a commencement of a share repurchase program. Following the successful restructuring of Cell C and the relinquishment of control, the group will equity account its 49.53% interest in Cell C going forward. This equity accounted contribution will include CEC's earnings following the disposal of CEC to Cell C in November 2025 and its integration into the Cell C group.

Speaker #1: Gross income of R2.555 billion, EBITDA of R923 million, net profit after tax of R677 million, headline and core headline earnings of R681 million, core headline earnings of 75.33 cents per share, a final dividend of 10 cents per share—bringing the total dividend for the year to 53.56 cents per share—and the commencement of a share repurchase program.

Speaker #1: Following the successful restructuring of Cell C and the relinquishment of control, the Group will equity account its 49.53% interest in Cell C going forward.

Speaker #1: This equity-accounted contribution will include CC's earnings following the disposal of CC to Cell C in November 2025, and its integration into the Cell C group.

Dean Suntup: Accordingly, the group's normalized earnings will incorporate its proportionate share of Cell C's annual profitability, which will be added to the core headline earnings base of ZAR 681 million. This is expected to provide a more comprehensive view of the group's total earnings. Normalized group revenue. Group revenue, excluding Cell C's consolidated results for the three months ended 30 November 2025, and Comm Equipment Company's results for the full six-month period amounted to ZAR 9.4 billion. As only the gross profit earned on pinless top-ups, prepaid electricity, ticketing, and universal vouchers are recognized as revenue, on imputing these gross revenue generated from these sources, the effect of growth in revenue equated to ZAR 6.7 billion, 7%, resulting in total revenue of ZAR 99.9 billion compared to the prior year of ZAR 93.2 billion. Gross revenue generated on pinless top-ups increased by ZAR 3.3 billion from ZAR 21.8 billion to ZAR 25.1 billion.

Speaker #1: Accordingly, the group's normalized earnings will incorporate its proportionate share of Cell C's annual profitability, which will be added to the core headline earnings base of R681 million.

Speaker #1: This is expected to provide a more comprehensive view of the group's total earnings. Normalized group revenue, group revenue excluding Cell C's consolidated results for the three months ended 30 November 2025 and CC's results for the full six-month period, amounted to R9.4 billion. As only the gross profit earned on pinless top-ups, prepaid electricity, ticketing, and universal vouchers are recognized as revenue, and imputing these gross revenues generated from these sources, the effective growth in revenue equated to R6.7 billion, a 7% increase, resulting in total revenue of R99.9 billion compared to the prior year's R93.2 billion.

Speaker #1: Gross revenue generated on pinless top-ups increased by R3.3 billion, from R21.8 billion to R25.1 billion. Electricity revenue generated on behalf of the utilities increased by R1.9 billion, or 4%, from R44.2 billion to R46.2 billion.

Dean Suntup: Electricity revenue generated on behalf of the utilities increased by ZAR 1.9 billion, 4%, from ZAR 44.2 billion to ZAR 46.2 billion. Commission earnings primarily calculated based on kilowatt-hour consumption declined by ZAR 40 million, 13%, from ZAR 319 million to ZAR 279 million. The decline in commissions was driven by margin compression despite overall growth in gross electricity revenue, supported by NERSA-approved tariff adjustments and inflationary increases linked to kilowatt-hour usage. Gross ticketing revenue declined by ZAR 174 million, 13%, resulting in a decline in commissions earned of ZAR 11 million. The decline was primarily attributable to lower sale volumes in music festivals and concerts, which have historically generated lower margins, offset by a growth in commuter bus channel revenues. Gross revenue from universal vouchers increased by ZAR 3.4 billion, 22%, from ZAR 15.3 billion to ZAR 18.7 billion and underpinned by continued expansion of Blu Voucher sales through financial institution channels.

Speaker #1: Commissioned earnings, primarily calculated based on kilowatt-hour consumption, declined by R40 million, or 13%, from R319 million to R279 million. The declining commissions were driven by margin compression, despite overall growth in gross electricity revenue, supported by NERSA-approved tariff adjustments and an inflationary increase linked to kilowatt-hour usage.

Speaker #1: Gross ticketing revenue declined by R174 million, or 13%, resulting in a decline in commissions earned of R11 million. The decline was primarily attributable to lower sale volumes in music festivals and concerts, which have historically generated lower margins, offset by a growth in commuter bus channel revenues.

Speaker #1: Gross revenue from universal vouchers increased by R3.4 billion, or 22%, from R15.3 billion to R18.7 billion, underpinned by continued expansion of Blu voucher sales through financial institution channels.

Speaker #1: Normalized EBITDA amounted to R923 million for the year, reflecting the continued resilience of the group's core distribution and payment platforms. Headline earnings and core headline earnings both amounted to R681 million, and core headline earnings per share amounted to 75.33 cents per share.

Dean Suntup: Normalized EBITDA amounted to ZAR 923 million for the year, reflecting the continued resilience of the group's core distribution and payment platforms. Headline earnings and core headline earnings both amounted to ZAR 681 million, and core headline earnings per share amounted to ZAR 0.7533 per share. The reported financial results. Blu Label's reported financial results included Cell C's equity accounted contribution for the three months ended 31 August 2025. Its consolidated results for the three months ended 30 November 2025, and Comm Equipment Company's results for the full six-month period as a disposal became effective only at the end of November 2025. Included in headline earnings adjusted for the year ended 31 May, is a net loss of ZAR 5.6 billion, which is added back in arriving at headline earnings. This primarily comprised a net loss of ZAR 5.19 billion relating to the group's investment in Cell C.

Speaker #1: The reported financial results: Blu's reported financial results included Cell C's equity-accounted contribution for the three months ended 31 August 2025, its consolidated results for the three months ended 30 November 2025, and Com Equipment's results for the full six-month period, as the disposal became effective only at the end of 2025.

Speaker #1: Included in headline earnings, adjusted for the year ended 31st of May, is a net loss of R5.6 billion, which is added back in arriving at headline earnings.

Speaker #1: This primarily comprised a net loss of R5.19 billion relating to the group's investment in Cell C. Turning to the balance sheet, the group's balance sheet has been materially simplified following the successful implementation of the Cell C pre-listing restructuring and the subsequent listing.

Dean Suntup: Turning to the balance sheet. The group's balance sheet has been materially simplified following the successful implementation of the Cell C pre-listing restructuring and the subsequent listing. With much of its historical complexities associated with Cell C's funding instruments and restructuring related transaction now unwound. Key structural changes included debt to equity conversion. The Prepaid Company's outstanding debt claims against Cell C were waived, as these amounts were not supported by pre-listing valuations. There was a disposal of Comm Equipment Company. The Prepaid Company disposed of its 100% shareholding in Comm Equipment Company to Cell C in exchange for additional Cell C shares. There was an airtime asset transfer, whereby The Prepaid Company returned airtime to Cell C in exchange for newly issued equity, and finally an SPV restructure where the special purpose vehicles that held equity interest in Cell C were restructured, further simplifying the group's financial structure.

Speaker #1: With much of its historical complexities associated with Cell C's funding instruments and restructuring-related transactions now unwound, key structural changes included a debt-to-equity conversion. TPC's outstanding debt claims against Cell C were waived, as these amounts were not supported by pre-listing valuations.

Speaker #1: There was a disposal of CC: TPC disposed of its 100% shareholding in CC to Cell C in exchange for additional Cell C shares. There was an airtime asset transfer, whereby TPC returned airtime to Cell C in exchange for newly issued equity. And finally, an SPV restructure, where the special purpose vehicles that held equity interests in Cell C were restructured, further simplifying the group's financial structure.

Speaker #1: In this regard, key balance sheet movements include a reduction in Cell C airtime inventory held by the group of R3.8 billion. There is a reduction in loans to Cell C of R3.2 billion, representing the prepaid companies' and Com Equipment companies' outstanding debt claims against Cell C. The loss of control of the Cell C group, including CEC, resulted in the full de-recognition of CEC's assets and liabilities. This included a reduction in intangible assets of R955 million, goodwill of R335 million, trade and other receivables of R448 million, together with a decrease in advances to customers of R1.6 billion.

Dean Suntup: In this regard, key balance sheets movements include a reduction in Cell C airtime inventory held by the group of ZAR 3.8 billion. There is a reduction in loans to Cell C of ZAR 3.2 billion, representing The Prepaid Company's and Comm Equipment Company's outstanding debt claims against Cell C. The loss of control of the Cell C group, including CEC, which resulted in the full derecognition of CEC's assets and liabilities. This included a reduction in intangible assets of ZAR 955 million, goodwill of ZAR 335 million, trade and other receivables of ZAR 448 million, together with a decrease in advances to customers of ZAR 1.6 billion. Interest-bearing borrowings declined by ZAR 1.7 billion, following the derecognition of the CEC facility with African Bank.

Speaker #1: Interest-bearing borrowings declined by R1.7 billion following the de-recognition of the CEC facility with African Bank. Financial assets at fair value through profit and loss of R372 million were reallocated to the investment in Cell C following the completion of TPC's acquisition of SPV1 and Grimmercy's shareholding in Cell C.

Dean Suntup: Financial assets at fair value through profit and loss of ZAR 372 million were reallocated to the investment in Cell C following the completion of TPC's acquisition of SPV1 and Gramercy's shareholding in Cell C. Investments in associates and joint ventures increased from ZAR 1.7 billion to ZAR 6.3 billion, driven primarily by Blu Label's investment in Cell C. Of this amount, ZAR 1.4 billion comprising a 15.95% interest in Cell C sold to Sisonke Growth Partners, has been reclassified as an asset held for sale, leaving a balance of ZAR 4.8 billion recognized within the investments in associates and joint ventures. Cash and cash equivalents increased by ZAR 143 million. This was primarily driven by the proceeds of ZAR 2.7 billion received from the sell-down of a 30% shareholding in Cell C, based on an equity valuation of ZAR 9 billion.

Speaker #1: Investments in associates and joint ventures increased from 1.7 billion rand to 6.3 billion rand driven primarily by Blu Label's investment in Cell C. Of this amount, 1.4 billion rand comprising a 15.95% interest in Cell C sold to Sisonki Growth Partners has been reclassified as an asset held for sale leaving a balance of 4.8 billion recognized within the investments in associates and joint ventures.

Speaker #1: Cash and cash equivalents increased by R143 million. This was primarily driven by the proceeds of R2.7 billion received from the sell-down of a 30% shareholding in Cell C, based on an equity valuation of R9 billion.

Speaker #1: The proceeds have been applied towards the settlement of certain interest-bearing borrowings and other debt obligations, and to the payment of the interim dividend to Blu's shareholders amounting to R398 million.

Dean Suntup: The proceeds have been applied towards the settlement of certain interest-bearing borrowings and other debt obligations, and to the payment of the interim dividend of Blu's shareholders amounting to ZAR 398 million. Interest-bearing borrowings declined by ZAR 783 million, primarily due to the derecognition of the ZAR 1.7 billion African Bank facility and the settlement of the current SPV5 Gramercy and Pref A liabilities amounting to ZAR 668 million. These reductions were offset by the ZAR 1.5 billion bridging facility raised in September 2025. As a result, the group is positioned with a simpler and more transparent balance sheet and enhanced financial flexibility. Moving to the cash flow statement. The cash flow statement includes Cell C's consolidated results for the three months ended 30 November 2025.

Speaker #1: Interest-bearing borrowings declined by R783 million, primarily due to the de-recognition of the R1.7 billion African Bank facility and the settlement of the current SPV5 Grimmercy and Pref A liabilities amounting to R668 million.

Speaker #1: These reductions were offset by the R1.5 billion bridging facility raised in September 2025. As a result, the group is positioned with a simpler and more transparent balance sheet and enhanced financial flexibility.

Speaker #1: Moving to the cash flow statement, the cash flow statement includes Cell C's consolidated results for the three months ended 30 November 2025. Cash generation remains a central focus for the group, and Blu Label continues to demonstrate strong cash conversion once restructuring-related impacts are excluded.

Dean Suntup: Cash generation remains a central focus for the group, and Blu Label continues to demonstrate strong cash conversion once restructuring related impacts are excluded. Normalized EBITDA translated into operating cash flows, supported by disciplined working capital management and capital expenditure aligned with the group's asset-light business model. Net cash generated from operating activities on a normalized basis will amount to approximately ZAR 60 million per month. Thank you. I will now hand over to Brett, who will take you through the operational performance and strategic outlook in more detail.

Speaker #1: Normalized EBITDA, translated into operating cash flows, is supported by disciplined working capital management and capital expenditure aligned with the group's asset-light business model. Net cash generated from operating activities on a normalized basis will amount to approximately R60 million per month.

Speaker #1: Thank you. I will now hand over to Brett, who will take you through the operational performance and strategic outlook in more detail.

Speaker #2: Thank you, Dean. The numbers show resilient underlying performance in a difficult market. They also demonstrate the progress we have made in simplifying Blu Label.

Brett Levy: Thank you, Dean. The numbers show resilient underlying performance in a difficult market. They also show the progress we have made in simplifying Blu Label. We are more focused, our balance sheet is cleaner, and our core platforms continue to generate cash. From a high level, just to go through our performance, this is a snapshot. Our revenue normalized ZAR 9.4 billion, our gross income reached ZAR 2.5 billion, and our EBITDA of ZAR 923 million. Our normalized net profit after tax was ZAR 677 million. Headline and core headline earnings were ZAR 681 million or ZAR 0.75 per share. The scale of the platform is also important. Effective gross revenue increased by 7%, from ZAR 93 billion to just under ZAR 100 billion. That is a solid result against a challenging consumer backdrop. Dean has taken you through the detail.

Speaker #2: We are more focused, our balance sheet is cleaner, and we generate cash. From a high level, just to go through our performance, this is a snapshot.

Speaker #2: Our revenue normalized at R9.4 billion, our gross income reached R2.5 billion, and our EBITDA was R923 million. Our normalized net profit after tax was R677 million.

Speaker #2: Headline and core headline earnings were R681 million, or 75 cents per share. The scale of the platform is also important. Effective gross revenue increased by 7%, from R93 billion to just under R100 billion.

Speaker #2: That is a solid result against a challenging consumer backdrop. Dean has taken you through the detail. I will focus on what is changing across the group, and where we see the next phase of value creation.

Brett Levy: I will focus on what is changing across the group and where we see the next phase of value creation. It hasn't been an easy consumer out there. We also had problems with xenophobia and some underlying things that crept into the middle of the year. The operating environment became noticeably harder from March. We saw pressure across prepaid, informal, and essential service channels. It was visible in trade activity. It was also visible in consumer volumes. South African unemployment increased to 32% in the first quarter of 2026. Household debt services costs remained high at 8.4% of disposable income. The combination placed real pressure on affordability and transaction frequency, but our scale helped. So did our procurement strength and the breadth of our platform. Those advantages allowed us to absorb some of the pressure. The consumer pressure across the prepaid ecosystem. The pressure was evident across the wider sector.

Speaker #2: It hasn't been an easy consumer environment out there. We also had problems with xenophobia and some underlying issues that crept in during the middle of the year.

Speaker #2: The operating environment became noticeably harder from March. We saw pressure across prepaid, informal, and essential service channels. It was visible in trade activity, and it was also visible in consumer volumes.

Speaker #2: South African unemployment increased to 32% in the first quarter of 2026. Household debt service costs remained high at 8.4% of disposable income. The combination places real pressure on affordability and transaction frequency.

Speaker #2: But our scale helped. So did our procurement strength and the breadth of our platform. Those advantages allowed us to absorb some of the pressure.

Speaker #2: The consumer pressure across the prepaid ecosystem was evident across the wider sector. Public results showed similar softness in prepaid and value-sensitive segments.

Brett Levy: Public results showed similar softness in prepaid and value-sensitive segments. MTN South Africa reported service revenue growth of only 0.7% in the first quarter of 2026, despite strong growth in data traffic. Vodacom had also experienced prepaid softness before returning to growth following pricing and proposition changing. Telkom performed more strongly once again. So this was not a uniform decline across the sector. It was a market shaped by high price sensitivity, changing buying patterns, and different operator strategies. In that environment, our reach, procurement capability, and product breadth remain important from a competitive advantage. We have been simplifying our group and sharpening our focus. The most important change this year was structural. We simplified the group. Cell C now operates independently, as you all know, with its listing on 27 November 2025. That has reduced complexity and improved transparency.

Speaker #2: MTN South Africa reported service revenue growth of only 0.7% in the first quarter of 2026, despite strong growth in data traffic.

Speaker #2: Vodacom had also experienced prepaid softness before returning to growth following pricing and proposition changes. Telco performed more strongly once again, so this was not a uniform decline across the sector.

Speaker #2: It was a market shaped by high price sensitivity, changing buying patterns, and different operator strategies. In that environment, our reach, procurement capability, and product breadth remained important from a competitive advantage.

Speaker #2: We have been simplifying our group and sharpening our focus. The most important changes here were structural. We simplified the group. Cell C now operates independently, as you all know, with its listing on the 27th of November, 2025.

Speaker #2: That has reduced complexity and improved transparency. It also allows us to focus more sharply on our core, cash-generative platforms. At the same time, our newer businesses are moving from development into execution.

Brett Levy: It also allows us to focus more sharply on our core cash generative platforms. At the same time, our newer businesses are moving from development into execution. The result is a cleaner group with strong cash generation and clear growth optionality. Our progress for the year, our focus, and our cash. We made progress across each part of the portfolio. The core business remained resilient despite the sector headwinds. Blu Label Distribution delivered a standout year. Blu Advance expanded across more products and channels. BluNova became more central to how we manage risk, improve margins, and drive growth. CG Cell and Blu Energy advanced our municipal revenue assurance and energy opportunities, and Cell C became an independently funded and separately listed business. These are meaningful steps in the last year. They leave Blu Label better positioned for the next phase. Our integrated cash generative ecosystem.

Speaker #2: The result is a cleaner group with strong cash generation and clear growth optionality. Our progress for the year is focus and our cash. We made progress across each part of the portfolio.

Speaker #2: The core business remained resilient despite the sector headwinds. Blu Label Distribution delivered a standout year. Blu Advanced expanded across more products and channels. Blu Nova became more central to how we manage risk, improve margins, and drive growth.

Speaker #2: CGCell and Blu Energy advanced our municipal revenue assurance and energy opportunities. And Cell C became an independently funded and separately listed business. These are meaningful steps in the last year.

Speaker #2: They leave Blu Label better positioned for the next phase—our integrated, cash-generative ecosystem. We now think about the group through four connected platforms.

Brett Levy: We now think about the group through four connected platforms. First, Distribution and Payments. This remains a high volume cash engine. Our second, Data Intelligence. This improves margin, reduces risk, and creates new commercial opportunities. Our third, Embedded Financial and Digital Services. These platforms use our data and distribution reach to scale. Fourth, Infrastructure and Energy. This gives us exposure to long-term structural demand. Each platform can stand on its own. Together, they are stronger. They share customers. They share data, distribution, and capability. This is how the ecosystem compounds value. Our Distribution and Payments were our core earnings engine. Distribution and Payments remain the foundation of Blu Label. Blu Label Distribution had an exceptional year. The wider platform also remained resilient despite industry pressure. Product mix continues to matter. We operate across airtime, data, electricity, vouchers, ticketing, devices, and related services.

Speaker #2: First, distribution and payments. This remains a high-volume cash engine. Second, data intelligence. This improves margin, reduces risk, and creates new commercial opportunities.

Speaker #2: Our third: embedded financial and digital services. These platforms use our data and distribution reach to scale. And fourth: infrastructure and energy. This gives us exposure to long-term structural demand. Each platform can stand on its own, but together they are stronger—they share customers, share data, distribution, and capability.

Speaker #2: This is how the ecosystem compounds value. Our distribution and payments were our core earnings engine. Distribution and payments remain the foundation of Blu Label.

Speaker #2: Blu Label Distribution had an exceptional year. The wider platform also remained resilient despite industry pressure. Product mix continues to matter. We operate across airtime, data, electricity, vouchers, ticketing, devices, and related services.

Speaker #2: That breadth gives us scale and resilience. Robtronics adds another growth avenue in handsets and hardware. Our focus is clear: protect the core, improve the mix, and grow through channels where we have an advantage.

Brett Levy: That breadth gives us scale and resilience. Robtronics adds another growth avenue in handsets and hardware. Our focus is clear. Protect the core, improve the mix, and grow through channels where we have an advantage. Data is now a commercial asset. Data has moved well beyond being an internal support function. It is now a commercial asset for the group. It helps us select risks more accurately, it improves how we target customers, and it supports better margins and stronger retention. This is a practical capability. It is already improving decisions across the business. Turning data into margin, retention, and growth. BluNova is at the center of that capability. It supports credit scoring and risk management. It helps prevent fraud and retain customers. It also improves lead generation and campaign performance. We are already seeing value across Cell C, Blu Advance, and Distribution.

Speaker #2: Data is now a commercial asset. Data has moved well beyond being an internal support function; it is now a commercial asset for the group.

Speaker #2: It helps us select risk more accurately, it improves how we target customers, and it supports better margins and stronger retention. This is a practical capability.

Speaker #2: It is already improving decisions across the business, turning data into margin, retention, and growth. Blu Nova is at the center of that capability. It supports credit scoring and risk management.

Speaker #2: It helps prevent fraud and retain customers. It also improves lead generation and campaign performance. We are already seeing value across Cell C, Blu Advance, and distribution.

Speaker #2: Over time, data will become a horizontal growth lever across the group. That means better decisions, lower risk, and more value from every customer relationship.

Brett Levy: Over time, data will become a horizontal growth lever across the group. That means better decisions, lower risk, and more value from every customer relationship. Our Blu Advance product platform. Blu Advance continues to perform well in a difficult market. It addresses a real consumer need through small, essential self-service advances. The platform includes electricity advance, airtime advance, and voucher-based solution. Its integration with distribution gives it reach, data, and margin advantages. The consumer base is growing, so is the range of channels and products. The opportunity now is to scale carefully. We will remain disciplined on credit quality, customer outcomes, and returns. Treasury and Procurement. Margin discipline in a low growth market. Treasury and Procurement remain important strategic enablers for this group. Our improved cash position strengthens our negotiating position. It supports better supply and network terms. It also helps us reduce financing costs.

Speaker #2: Our Blu Advance product platform—Blu Advance continues to perform well in a difficult market. It addresses a real consumer need through small, essential self-service advances.

Speaker #2: The platform includes electricity advance, airtime advance, and voucher-based solutions. Its integration with distribution gives it reach, providing data and margin advantages. The consumer base is growing.

Speaker #2: So is the range of channels and products. The opportunity now is to scale carefully. We will remain disciplined on credit quality, customer outcomes, and returns.

Speaker #2: Treasury and procurement. Margin discipline in a low-growth market. Treasury and procurement remain important strategic enablers for this group. Our improved cash position strengthens our negotiating position.

Speaker #2: It supports better supply and network terms. It also helps us reduce financing costs. The close integration with distribution gives us additional reach and margin benefits.

Brett Levy: The close integration with distribution gives us additional reach and margin benefits. This capability becomes even more important in a low growth market. When volumes are under pressure, procurement discipline helps us protect margins. Strong cash management also gives us greater flexibility and allows us to respond quickly to opportunities. This is an area where our scale creates a real advantage. That gives you a sense of our core platforms and the capabilities that connect them. I will now hand you over to Mark. He will take you through Cell C and BluEnergy, where we are seeing real progress and significant opportunities to scale.

Speaker #2: This capability becomes even more important in a low-growth market. When volumes are under pressure, procurement discipline helps us protect margins. Strong cash management also gives us greater flexibility and allows us to respond quickly to opportunities.

Speaker #2: This is an area where our scale creates a real advantage. That gives you a sense of our core platforms and the capabilities that connect them.

Speaker #2: I will now hand you over to Mark. He will take you through CGCell and Blu Energy, where we are seeing real progress and significant opportunities to scale.

Speaker #1: Thank you, Brett. And welcome, everybody. Let me take you through two areas of the business where we are seeing some really interesting progress, and importantly, where we’re seeing significant opportunities to scale—both CGCell and Blu Energy.

Mark Levy: Thank you, Brett, and welcome everybody. Let me take you through two areas of the business where we are seeing some really interesting progress, and importantly, where we are seeing significant opportunities to scale both CG Cell and BluEnergy. I will start with CG Cell and then move through the progress we are making with CG Cell across municipal revenue assurance and our large power user projects, together with the balance of the BluEnergy offering. Let me now turn to CG Cell, because this is an area where we are seeing a number of the group's capabilities come together in a very practical way. The opportunity here is actually quite simple. For municipalities, the challenge is about making sure that they bill correctly, know their customers, and collect properly. That is the ecosystem we are building through CG Cell.

Speaker #1: I'll start at CGCell and then move through the progress we are making with CGCell across municipal revenue assurance and our large power user projects, together with the balance of the Blu Energy offering.

Speaker #1: Let me now turn to CG Cell, because this is the area where we are seeing a number of the group's capabilities come together in a very practical way.

Speaker #1: The opportunity here is actually quite simple. For municipalities, the challenge is about making sure that they bill correctly, know their customers, and collect properly.

Speaker #1: That is the ecosystem we're building through CGCell. Importantly, we are moving beyond the traditional prepaid electricity business into a much broader municipal revenue assurance program.

Mark Levy: We are moving beyond the traditional prepaid electricity business into a much broader municipal revenue assurance program. We are working with municipalities across a number of different interventions, including smart metering, revenue assurance, credit control, data cleansing and verification, meter audits, indigent management, and large power user programs. The common thread across all of these is that we are helping municipalities improve the quality of billing and ultimately improve their revenue collection. The opportunity is significant, but we also recognize that these are complex projects involving multiple stakeholders and, in many cases, municipal processes and procurement. So far, our focus has been improving the model, demonstrating tangible outcomes, and then scaling it from there. Against this backdrop, let me move to BluEnergy, where we see a very significant opportunity to participate in the changing South African energy market, particularly with the municipal environment.

Speaker #1: We're working with municipalities across a number of different interventions, including smart metering, revenue assurance, credit control, data cleansing and verification, meter audits, indigent management, and large power user programs.

Speaker #1: The common thread across all of these is that we're helping municipalities improve the quality of billing and, ultimately, improve their revenue collection. The opportunity is significant, but we're also recognizing that these are complex projects involving multiple stakeholders and, in many cases, municipal processes and procurement.

Speaker #1: So far, our focus has been on proving the model, demonstrating tangible outcomes, and then scaling it from there. Against this backdrop, let me move to Blu Energy, where we see a very significant opportunity to participate in the changing South African energy market, particularly within the municipal environment.

Speaker #1: Our position is complementary to Eskom's RPP program and municipal supply, but gives us a differentiated route to market through our existing municipal relationships and capabilities.

Mark Levy: Our position is complementary to Eskom's RPP program and municipal supply, but gives us a differentiated route to market through our existing municipal relationships and capabilities. At its simplest, BluEnergy brings together power aggregation, trading, wheeling, and embedded generation. We are looking at multiple verticals rather than relying on one model. That includes trading power from independent power producers, wheeling that power through our LPU network of multiple off-takers, and developing generation directly at nodes on the municipal grid. We are also seeing an opportunity around batteries, both as part of a renewable generation solution and as a standalone opportunity. The important point is that these are not theoretical opportunities. We are building this around contracted off-take, which gives us greater earnings visibility and limits our volume risk.

Speaker #1: At its simplest, Blu Energy brings together power aggregation, trading, wheeling, and embedded generation. We are looking at multiple verticals rather than relying on one model.

Speaker #1: That includes trading power from independent power producers, wheeling that power through our LPU network to multiple offtakers, and developing generation directly at nodes on the municipal grid.

Speaker #1: We're also seeing an opportunity around batteries, both as part of a renewable generation solution and as a standalone opportunity. The important point is that these are not theoretical opportunities.

Speaker #1: We are building this around contracted offtake, which gives us greater earnings visibility and limits our volume risk. We have a unique advantage here because we can leverage capabilities that already exist within Blu Label, including payments, billing, onboarding, risk management, and our relationships across municipal environments.

Mark Levy: We have a neutral advantage here because we can leverage capabilities that already exist within Blu Label, including payments, billing, onboarding, risk management, and our relationships across municipal environments. If you look at the South African electricity market, the scale of opportunity becomes clear. We estimate that around 65% of the South African electricity consumption is driven by commercial and industrial customers, with close to 40% of that demand sitting within the municipal grid. That creates a very interesting market opportunity for us. Our approach is therefore deliberately diversified. Trading allows us to participate in the buying and selling of power. Wheeling allows us to use our LPU network to move power from generation sites to multiple off-takers. Our nodal generation model is where we physically generate power within the municipal grid under contracted PPAs. Within the nodal generation, we have both rooftop and ground-mounted projects.

Speaker #1: If you look at the South African electricity market, the scale of opportunity becomes clear. We estimate that around 65% of South Africa's electricity consumption is driven by commercial and industrial customers.

Speaker #1: With close to 40% of that demand sitting within the municipal grid, that creates a very interesting market opportunity for us. Our approach is therefore deliberately diversified. Trading allows us to participate in the buying and selling of power. Wheeling allows us to use our LPU network to move power from generation sites to multiple offtakers. Our nodal generation model is where we physically generate power within the municipal grid under contracted PPAs, and within the nodal generation we have both rooftop and ground-mounted projects.

Speaker #1: Rooftops can be brought online more quickly, while ground-mounted projects are larger and have longer development timelines. And then we have batteries, which can either be paired with these generation assets or operate as a standalone proposition.

Mark Levy: Rooftops can be brought online more quickly, while ground-mounted projects are larger and have longer development timelines. We have batteries, which can either be paired with these generation assets or operate as a standalone proposition. The battery opportunity is particularly interesting because it allows us to shift when electricity is supplied. For example, we can charge using solar generation and discharge during higher-value peak periods. Rather than thinking about Blu Energy as simply a solar generation business, we see it as a broader energy platform spanning trading, wheeling, generation, and storage. Let me give you a more tangible update on our nodal status. We currently have a 400 megawatt stage 1 opportunity, which is the first 1 to 3-year opportunity for the business. Within that, we have 180 megawatts named portfolio across seven individual projects, with the projects progressing through different stages of development.

Speaker #1: The battery opportunities are particularly interesting because they allow us to shift when electricity is supplied. For example, we can charge using solar generation and discharge during higher-value peak periods.

Speaker #1: So, rather than thinking about Blu Energy as simply a solar generation business, we see it as a broader energy platform, spanning trading, wheeling, generation, and storage.

Speaker #1: Let me give you a more tangible update on our nodal status. We currently have a 400-megawatt, Stage One opportunity, which is the first one-to-three opportunity for the business.

Speaker #1: Within that, we have a 180-megawatt nameplate portfolio across seven individual projects, with the projects progressing through different stages of development. The first 28 megawatts is rooftop generation and is ready to execute, with construction targeted for the fourth quarter of 2026 and the first quarter of 2027.

Mark Levy: The first 28 megawatts is rooftop generation and is ready to execute, with construction targeted for Q4 2026 and Q1 2027. We then have 82 megawatts of committed ground-mounted projects, which are moving through execution, followed by another 70 megawatts of near-term ground-mounted pipeline. Beyond those named projects, we have a further 220 megawatts in the future pipeline currently at targeting and origination stage. The important message here is that we have moved from discussing an opportunity to actually building a portfolio with contracted PPAs, secured sites and grid connection, and projects progressing through feasibility, permitting, and execution. We are continuing to build a pipeline beyond that initial 400 megawatt opportunity.

Speaker #1: We then have 82 megawatts of committed ground-mounted projects, which are moving through execution, followed by another 70 megawatts of near-term ground-mounted pipeline.

Speaker #1: Beyond those named projects, we have a further 220 megawatts in the future pipeline, currently targeting an origination stage. So an important message here is that we have moved from discussing an opportunity to actually building a portfolio, with contracted PPAs, secured sites, and grid connection, and projects progressing through feasibility, permitting, and continuing to build a pipeline beyond that initial 400 megawatt opportunity.

Speaker #1: We have also put the financing framework into place for these projects, with the intention of funding a significant majority of these project costs through project finance, depending on the individual project.

Mark Levy: We have also put the financing framework into place for these projects, with the intention of funding a significant majority of these project costs through project finance, depending on the individual project. We are being disciplined about capital deployment while building sizable energy platforms. On the nodal portfolio, this gives you a little bit more detail on the composition of that portfolio. The 180 megawatts named portfolio comprises of seven projects across three phases. Phase 1 is a 28 megawatt rooftop portfolio that projects. There are two projects of 9 megawatts and 19 megawatts. These are the projects that are furthest advanced and are therefore the first to come through. Phase 2 is 80 megawatts of ground-mounted generation comprising of three projects. Phase 3 adds another 70 megawatts across two further ground-mounted projects. What is important is these are not simply development sites on a map.

Speaker #1: So, we are being disciplined about capital deployment while building sizable energy platforms. On the nodal portfolio, this gives you a little bit more detail on the composition of that portfolio.

Speaker #1: The 180-megawatt nameplate portfolio comprises seven projects across three phases. Phase one is a 28-megawatt rooftop portfolio; within that, there are two projects of 9 megawatts and 19 megawatts, respectively.

Speaker #1: These are the projects that are furthest advanced and are therefore the first to come through. Phase two is 80 megawatts of ground-mounted generation, comprising three projects.

Speaker #1: And then phase three adds another 70 megawatts across two further ground-mounted projects. What is important, as what is important, is these are not simply development sites on a map.

Speaker #1: We have contracted PPAs, sites secured, and grid connection secured, and the projects are moving through the remaining feasibility, permitting, and development processes. That gives us a much greater degree of visibility than you would have with a conventional early-stage development pipeline.

Mark Levy: We have contracted PPAs, sites secured, and grid connection secured, and the projects are moving through the remaining feasibility, permitting, and development processes. That gives us a much greater degree of visibility than you would have with conventional early-stage development pipelines. Importantly, we are continuing to build beyond the named 180 megawatt portfolio. We see this as the beginning of a much larger opportunity rather than the end state of the business. Let's circle back to CG Cell and talk about some of the tangible progress we have made there. The smart metering opportunity is particularly important because it gives municipalities better visibility over consumption, improves billing accuracy, and ultimately supports better revenue collection. To date, we have deployed more than 50,000 meters. We are now moving into a new phase of approximately 10 to 15,000 additional meters, with that program commencing imminently.

Speaker #1: And importantly, we are continuing to build beyond the named 180-megawatt portfolio. So, we see this as the beginning of a much larger opportunity rather than the end state of the business.

Speaker #1: Let's circle back to CGSol and talk about some of the tangible progress we have made there. The smart metering opportunities are particularly important, because they give municipalities better visibility over consumption, improve billing accuracy, and ultimately support better revenue collection.

Speaker #1: To date, we have deployed more than 50,000 meters. We are now moving into a new phase of approximately 10,000 to 15,000 additional meters, with that program commencing imminently.

Speaker #1: The economies of these projects are attractive because the revenues are contracted over a three-year period, with gross profit weighted towards the first year. We are also seeing tangible evidence that these interventions work.

Mark Levy: The economies of these projects are attractive because the revenue is contracted over a 3-year period, with gross profit weighing towards the first year. We are also seeing tangible evidence that these interventions work. Across our deployments, we have seen approximately a 10% improvement in revenue following the NERSA tariff increases. That is important because we are not asking municipalities to take our word for the opportunity. We are demonstrating measurable improvements in the underlying revenue base, and we are also making steady progress on non-Treasury-funded projects. The constraint there remains municipal funding availability, particularly for smart metering deployments, but the order pipeline is increasing. The opportunity expanding beyond the Treasury-funded program is municipalities are increasingly recognizing the need to improve revenue collections and billing integrity. On the revenue assurance program, the broader revenue assurance opportunities where I think CG Cell's proposition becomes particularly interesting.

Speaker #1: Across our deployments, we have seen approximately a 10% improvement in revenue following the NERSA tariff increases. That is important because we are not asking municipalities to take our word for the opportunity, but demonstrating measurable improvements in the underlying revenue base.

Speaker #1: And we are also making steady progress on non-treasury-funded projects. The constraint there remains municipal funding availability, particularly for smart metering deployments, but the order pipeline is increasing.

Speaker #1: So, the opportunity is expanding beyond the treasury-funded program, as municipalities are increasingly recognizing the need to improve revenue collections and billing integrity. On the revenue assurance program and the broader revenue assurance opportunities, we think CGSol's proposition becomes particularly interesting.

Speaker #1: We are working across credit-controlled data cleansing and verification, meter audits, installations, indigent management, and vetting. We are seeing tangible progress across a growing number of projects.

Mark Levy: We are working across credit control, data cleansing and verification, meter audits, installations, indigent management, and vetting. We are seeing tangible progress across a growing number of projects. On credit control interventions, for example, we assisted municipalities with cash collections in excess of ZAR 450 million during the past financial year. That demonstrates the scale of the problem municipalities are dealing with, but also the opportunities for us that help address it. We have also seen particularly strong results in prepaid water. In some instances, municipalities have seen revenue improvements of as much as 93% following the deployment of smart prepaid water meters. We are also very focused on the social and economic impact of these projects. Where we operate, we use local labor, provide training, and skills transfer into the communities in which we are active.

Speaker #1: On credit control interventions, for example, we assisted municipalities with cash collections in excess of R450 million during the past financial year. That demonstrates the scale of the problem municipalities are dealing with, but also the opportunities for us to help address it.

Speaker #1: We have also seen particularly strong results in prepaid water. In some instances, municipalities have seen revenue improvements of as much as 93% following the deployment of smart prepaid water meters.

Speaker #1: We're also very focused on the social and economic impact of these projects. Where we operate, we use local labor, and provide training and skills transfer into the communities in which we are active.

Speaker #1: And on the indigent registration, we have already registered tens of thousands of indigent customers. This is important because it helps municipalities establish credible beneficiary registers, improves equitable share optimization, and reduces fraud.

Mark Levy: On the indigent registration, we have already registered tens of thousands of indigent customers. This is important because it helps municipalities establish credible beneficiary registers, improves equitable share optimization, and reduces fraud. There are millions of more customers which still need to be brought to these systems, which illustrate the scale of the long-term opportunity. So what we are trying to demonstrate here is very simple. We are moving from theory to execution, and we are measuring the outcomes. Finally, I want to touch on our large power users or LPU projects, because these demonstrate both the complexity of what we are doing and the potential scale of the opportunity. These are large and complicated municipal projects, and they do take time to move through the various stages, but we have already made some good progress. In Thohoyandou alone, the proof of concept phase is complete.

Speaker #1: There are millions more customers who still need to be brought to these systems, which illustrates the scale of the long-term opportunity. So, what we are trying to demonstrate here is very simple.

Speaker #1: We're moving from theory to execution, and we are measuring the outcomes. Finally, I want to touch on our Large Power Users (LPU) projects, because these demonstrate both the complexity of what we're doing and the potential scale of the opportunity.

Speaker #1: These are large and complicated municipal projects, and they do take time to move through the various stages. But we have already made some good progress.

Speaker #1: In Trani alone, the proof-of-concept phase is complete. We started with a ring-fenced group of around 300 customers and identified approximately R380 million of revenue leakage.

Mark Levy: We started with a ring-fence group of around 300 customers and identified approximately ZAR 380 million of revenue leakage. Importantly, based on the customers impacted by the intervention, we have identified potential revenue improvements of around 30%. In uMhlathuze, the pilot phase has commenced covering approximately 2,250 customers. At this stage, we estimate an upside of improvement of about ZAR 80 million, with early-stage revenue improvements of around 18% following the interventions. We have signed several other municipalities and are currently trying to conclude and finalize their respective SLAs in order for the projects to move into initiation phase. We estimate billions of rands of billing and collection shortfalls across the targeted areas of operation. While these projects are complex and take time to execute, the scale of the underlying opportunity is substantial. Importantly, we are now seeing progression from the proof of concept to pilot to execution.

Speaker #1: Importantly, based on the customers impacted by the intervention, we have identified potential revenue improvements of around 30%. In Ukurileni, the pilot phase has commenced, covering approximately 2,250 customers.

Speaker #1: At this stage, we estimate an upside improvement of about R80 million, with early-stage revenue improvements of around 18% following the interventions.

Speaker #1: We have signed several other municipalities and are currently trying to conclude and finalize their respective SLAs in order for the projects to move into the initiation phase.

Speaker #1: We estimate billions of rands in billing and collection shortfalls across the targeted areas of operation. So, while these projects are complex and take time to execute, the scale of the underlying opportunity is substantial.

Speaker #1: And importantly, we are now seeing progression from the proof of concept to pilot to execution. This is really the story across CGSol. We have a number of different interventions; we have demonstrated that the model works, and we are increasingly moving to larger-scale projects, where the financial impact for municipalities—and therefore the opportunity for CGSol—becomes increasingly more meaningful.

Mark Levy: This is really the story across Cell C. We have a number of different interventions. We have demonstrated that the model works, and we are increasingly moving to larger scale projects where the financial impact for municipalities, and therefore the opportunity for Cell C, becomes increasingly more meaningful. Taken together, Cell C and Blu Energy gives us exposure to two very significant structural opportunities in the municipal market, improving the way electricity is bought, generated, and billed, and collected, while at the same time helping municipalities improve the sustainability of their revenue base. To conclude, what I hope we have demonstrated is that both Blu Energy and Cell C are moving from being opportunities in development to businesses where they are seeing increasingly tangible execution and commercial transaction. Within Blu Energy, we have a growing contractual pipeline across generation, trading, wheeling, and storage.

Speaker #1: So, taken together, CGSol and Blue Energy give us exposure to two very significant structural opportunities in the municipal market: improving the way electricity is bought, generated, and billed and collected, while at the same time helping municipalities improve the sustainability of their revenue base.

Speaker #1: So, to conclude, what I hope we've demonstrated is that both Blue Energy and CGSol are moving from being opportunities in development to businesses where they are seeing increasingly tangible execution, community, and commercial transaction.

Speaker #1: Within Blue Energy, we have grown our contractual pipeline across generation, trading, wheeling, and storage. And with CGSol, we are increasingly demonstrating the ability to help municipalities improve billing, collections, and revenue assurance, with measurable outcomes already being achieved.

Mark Levy: With Cell C, we are increasingly demonstrating the ability to help municipalities improve billing, collections, and revenue assurance with measurable outcomes already being achieved. There is still a lot of work to do, particularly given the complexity of operating in the municipal environment, but we are making good progress and remain very excited about the opportunities ahead. Thank you very much, everyone, and I will hand you now back to Brett.

Speaker #1: There's still a lot of work to do, particularly given the complexity of operating in the municipal environment. But we are making good progress and remain very excited about the opportunities ahead.

Speaker #1: Thank you very much, everyone, and I'll hand you now back to Brett.

Speaker #2: Thank you, Mark. Let me close with Cell C—our approach to capital allocation and the outlook for the year ahead. Cell C: an independent platform positioned for growth.

Brett Levy: Thank you, Mark. Let me close with Cell C, our approach to capital allocation and the outlook for the year ahead. Cell C, an independent platform positioned for growth. Cell C's full year performance reflects the completion of its turnaround and the beginning of the next phase of its growth journey. Revenue reached ZAR 12.6 billion and service revenue of ZAR 11.6 billion. The business generated free cash flow of ZAR 1.56 billion, supported by a disciplined and capital-efficient operating model. Cell C ended the year with 8.8 million subscribers, excluding MVNO HLR base. That represents 1.3 million subscribers and added during the year. It continues to lead South Africa's MVNO market with 5.7 million MVNO HLR subscribers on its platform. Cell C is now stronger, simpler, and more agile. Its capital efficient partnership-led model positions the business to scale and capture the opportunities ahead. Cell C shareholding, disciplined and value-led optionality.

Speaker #2: Cell C's full-year performance reflects the completion of its turnaround and the beginning of the next phase of its growth journey. Revenue reached R12.6 billion and service revenue was R11.6 billion.

Speaker #2: The business generated free cash flow of $1.56 billion, supported by a disciplined and capital-efficient operating model. Cell C ended the year with 8.8 million subscribers, excluding NVNO, HLR base.

Speaker #2: That represents 1.3 million subscribers added during the year. It continues to lead South Africa's MVNO market, with 5.7 million MVNO HLR subscribers on its platform.

Speaker #2: Cell C is now stronger, simpler, and more agile. Its capital-efficient, partnership-led model positions the business to scale and capture the opportunities ahead.

Speaker #2: Cell C shareholding disciplined and value-led optionality. Blue Label remains a meaningful shareholder of Cell C. We remain aligned with its long-term value creation. Over time, we may reduce our holding to a more strategic position.

Brett Levy: Blu Label remains a meaningful shareholder of Cell C. We remain aligned with its long-term value creation. Over time, we may reduce our holding to a more strategic position. Any reduction will be responsible, staged, and sensitive to value. It will also take account of market conditions, liquidity, BEE requirements, and the necessary approvals. Improving liquidity in Cell C is important for all stakeholders. We therefore intend to retain flexibility and act in the best interests of Blu Label and its shareholders. From a capital allocation discipline, flexible and value led. Our capital allocation priorities are straightforward. First, support the core cash generative platforms. Second, maintain balance sheet flexibility. Third, fund high conviction growth opportunities where the returns are clear. Fourth, return surplus capital where that is value accretive.

Speaker #2: Any reduction will be responsibly staged and sensitive to value. It will also take account of market conditions, liquidity, BE requirements, and the necessary approvals.

Speaker #2: Improving liquidity in Cell C is important for all stakeholders. We therefore intend to retain flexibility and act in the best shareholders. From a capital allocation, discipline, flexible, and value led.

Speaker #2: Our capital allocation priorities are straightforward. First, support the core cash-generative platforms. Second, maintain balance sheet flexibility. Third, fund high-conviction growth opportunities where the returns are clear. And fourth, return surplus capital where that is value accretive.

Speaker #2: From our dividend and share repurchase program, reflecting the group's strong financial performance and confidence in its future cash-generating capacity, the board has declared a final dividend of 10 cents per share.

Brett Levy: From our dividend and share repurchase program, reflecting the group's strong financial performance and confidence in its future cash generating capacity, the board has declared a final dividend of ZAR 0.10 per share, bringing the total dividend for 2026 financial year to just under ZAR 0.54 per share. In addition, on 25 August, the board approved a share repurchase program under the general authority granted by shareholders at the last AGM. Repurchases will be undertaken subject to market conditions and the relevant regulatory requirements for as long as the board considers them to be value accretive to shareholders. The program provides Blu Label with additional flexibility to allocate capital efficiency and, where appropriate, acquire shares at a level that the board believes will deliver incremental value to shareholders over the longer term.

Speaker #2: Bringing the total dividend for the 2026 financial year to just under 54 cents per share. In addition, on the 25th of August, the Board approved a share repurchase program under the general authority granted by shareholders at the last AGM.

Speaker #2: Repurchases will be undertaken, subject to market conditions and the relevant regulatory requirements, for as long as the board considers them to be value-accretive to shareholders.

Speaker #2: The program provides Blue Label with additional flexibility to allocate capital efficiently and, where appropriate, acquire shares at levels that the board believes will deliver incremental value to shareholders over the longer term.

Speaker #2: The principle is simple: we will remain disciplined and allocate capital where it can create the greatest value. Our outlook is disciplined execution in a challenging environment.

Brett Levy: The principle is simple: we will remain disciplined and allocate capital where it can create the greatest value. Our outlook, disciplined execution in a challenging environment. The consumer and trade environment remains difficult. We do not expect affordability pressures to disappear quickly. Blu Label enters the new financial year in a stronger position, a group that is more focused, a group that is more liquid, and the core platforms remain cash generative. Blu Advance, BluNova, Robtronics, CG Cell, and Blu Energy provide clear growth optionality. Our priorities for 2027 are cash generation, liquidity, and execution. We will protect margins, manage costs and working capital tightly, and remain disciplined in how we deploy capital. We have strong platforms, we have a simpler structure, and we have meaningful opportunities in front of us. Our job now is to execute. Board transition.

Speaker #2: The consumer and trader environment remains difficult. We do not expect affordability pressures to disappear quickly, but Blue Label enters a new financial year in a stronger position.

Speaker #2: A group that is more focused. A group that is more liquid. And the core platforms remain cash generative. Blue Advance, Blue Nova, Robtronic, CGSol, and Blue Energy provide clear growth optionality.

Speaker #2: Our priorities for 2027 are cash generation, liquidity, and execution. We will protect margins, manage costs, and work in capital tightly, and remain disciplined in how we deploy capital.

Speaker #2: We have strong platforms. We have a simple structure and we have meaningful opportunities in front of us. Our job now is to execute.

Speaker #2: Board transition. Before we close, I want to recognize an important board transition. To the legendary Larry Nestadt, our chairman, thank you for your extraordinary contribution to Blue Label over 19 years.

Brett Levy: Before we close, I want to recognize an important board transition. To the legendary Larry Nestadt, our Chairman, thank you for your extraordinary contribution to Blu Label over 19 years. You have led the board since 2007. Your guidance, judgment, and commitment have helped shape this business over many years. Mark and I, and the entire Blu Label team, are deeply grateful. We are also delighted to welcome Lindsay Ralphs as our new Chairman. Lindsay brings extensive leadership and governance experience. We look forward to working closely with him as Blu Label enters this new chapter. Thank you to our entire board, our leadership team, and every Blu Label employee. Thank you also to our customers, our partners, our shareholders for your continued support. I will now open the floor to questions. Good afternoon, everybody, again. How are you? I will start with anybody online. Does anyone online have a question?

Speaker #2: You have led the board since 2007. Your guidance, judgment, and commitment have helped shape this business over many years. Mark and I, and the entire Blue Label team, are deeply grateful.

Speaker #2: We are also delighted to welcome Lindsay Ralph as our new Chairman. Lindsay brings extensive leadership and governance experience. We look forward to working closely with him as Blue Label enters this new chapter.

Speaker #2: Thank you to our entire Board, our leadership team, and every Blue Label employee. Thank you also to our customers, our partners, and our shareholders for your continued support.

Speaker #2: I will now open the floor to questions.

Speaker #3: Good afternoon, everybody, again. How are you? I'll start with anybody online. Does anyone online have a question?

Operator: At this stage, we have no questions on the telephone lines. Thank you.

Speaker #4: At this stage, we have no questions on the telephone lines. Thank you.

Speaker #3: Thank you. Okay, so I'll start with the questions that have come through to us. The first question is from Herman Lloyd. Hi, Herman.

Brett Levy: Thank you. Okay. I will start with the questions that have come through to us, obviously. The first question is from Herman Lloyd. Hi, Herman. How are you? Can you give us a scope of the size of the buyback and when it will commence? An update on the BEE, the Sisonke loan refinance would also be appreciated. Okay, great one to start with. I guess top of everyone's mind that has come through on a few of the questions to us throughout the day and a few of the questions today as well. Let me start with the buyback. The board of Blu Label will continue buying shares as long as we believe it is accretive for shareholders. We obviously believe at the current price it is very accretive for shareholders, that it is a very good investment for Blu Label to buy back its shares.

Speaker #3: How are you? Can you give us a sense of the size of the barback and when it will commence? An update on the BE, as well as the Sassonki Loan Refinance, would also be appreciated.

Speaker #3: Okay, great one to start with, I guess—top of everyone's mind. It's come through on a few of the questions to us throughout the day, and a few of the questions today as well.

Brett Levy: Okay, great one to start with. I guess top of everyone's mind that has come through on a few of the questions to us throughout the day and a few of the questions today as well. Let me start with the buyback. The board of Blu Label will continue buying shares as long as we believe it is accretive for shareholders. We obviously believe at the current price it is very accretive for shareholders, that it is a very good investment for Blu Label to buy back its shares.

Speaker #3: So let me start with the buyback. The board of Blue Label will continue buying shares as long as we believe it's accretive for shareholders.

Speaker #3: We obviously believe that, at the current price, it is very accretive for shareholders and that it is a very good investment for Blue Label to buy back its shares.

Speaker #3: And, obviously, as it is requested by the JSC on the rules of when reporting has to take place, we will report at each time that it needs to.

Brett Levy: As it is requested by the JSE on the rules of when reporting has to take place, we will report it each time that it needs to. But in short, as long as it is accretive, we will continue to buy. The second question is on the update of the BEE Sisonke finance. When we listed Cell C, as you would have known immediately in our results of November, which we presented in February to all of you, we put it for asset for sale immediately, which means that we have until the end of November to refinance the Sisonke transaction. In short, we will deliver it in the timeframe that we have promised the market. Over to the second question is from Dylan Bradfield. Hello, Dylan. How are you? What is all the commissions on revenue assurance with municipalities? I will hand it over to you, Mark.

Speaker #3: But in short, as long as it's accretive, we will continue to buy. The second question is on the update of the BE Sassonki Finance.

Speaker #3: So, when we listed Cell C, as you would have known immediately from our results in November, which we presented in February to all of you, we had put it as an asset for sale immediately.

Speaker #3: Which means that we have until the end of November to refinance the Sassonki transaction. In short, we will deliver it in the time frame that we've promised the market.

Speaker #3: Moving on to the second question, which is from Dylan Bradfield. Hello, Dylan, how are you? What are the commissions on revenue assurance with municipalities? I'll hand it over to you, Mark.

Speaker #1: Just as a stated policy a few presentations ago, we explained that the commercials or commissions are under pressure from municipalities, and hence the need to start pivoting this business into what we call the Blue Energy revenue assurance, indigent management, credit control, and so forth.

Mark Levy: Just as a stated policy, a few presentations ago, we explained that the commercials or commissions are under pressure from municipalities and hence the need to start pivoting this business into what we call the Blu Energy revenue assurance, indigent management, credit control, and so forth. We actually predicted the compression in commission. What we have been doing is slowly starting to implement these new programs, revenue assurance being one of them, as per your question, Dylan, and that has equated to about a ZAR 66 million net commission earned by us. As some of the margins in the traditional vending decreases, we are substituting that with planned other incomes and revenue streams like the metering, like the revenue assurance, which have the opportunities or the potential of being far greater than the commission sacrifice that we are doing.

Speaker #1: So we actually predicted the compression in commission. So what we've been doing is slowly starting to implement these new programs, revenue assurance being one of them, as per your question, Dylan.

Speaker #1: And that's equated to about R66 million net commission earned by us. So, as some of the margins in the traditional vending decrease, we are substituting that with planned other incomes and revenue streams, like the metering and revenue assurance, which have the opportunities or the potential of being far greater than the commission sacrifice that we're making.

Speaker #1: Our intention is to try and get longer term agreements to try and ensure that you have a lot more visibility over the next three, five, 10 years in terms of the production of energy and the revenue assurance programs.

Mark Levy: Our intention is to try and get longer term agreements to try and ensure that you have a lot more visibility over the next 3, 5, 10 years in terms of the production of energy and the revenue assurance programs.

Speaker #3: Thank you, Mark. The next question is from Press Audio. How's the press? It's got a bit of the first question, so you can see if there's anything to add onto this, to Mark again.

Brett Levy: Thank you, Mark. The next question is from Prash Dayal. How is it, Prash? It has a bit of the first question, so you can see if there is anything to add on to this to Mark again, the first part of it. Congratulations on the results. I have two questions. First one, electricity throughput increased 4% from ZAR 44 billion to ZAR 46 billion, basically the revenue on electricity, yet commission income fell 13% from ZAR 319 million to ZAR 279 million, ZAR 40 million. What drove that compression and should we regard the lower take rate as the new normal, or is there scope for recovery?

Speaker #3: First of all, congratulations on the results. I have two questions. First, electricity throughput increased 4%, from 44 billion to 46 billion.

Speaker #3: Basically, the revenue on electricity. Yet commission income fell 13%, from 319 to 279 million—a 40 million rand decrease. What drove that compression, and should we regard the lower take rate as the new normal, or is there scope for recovery?

Speaker #1: So, as we explained, we earn commission on kilowatts or megawatts sold. So, when you see a pricing increase of 10 or 15%, you'll see your revenue increase, but your commission earned starts to decrease because if a guy could, let's say, buy R100 for 10 megawatts, R100 today would give him 8 megawatts, but he cannot afford more than R100.

Mark Levy: As we explained, we earn commission on kilowatts or megawatts sold. When you see a NERSA increase of 10% or 15%, you will see your revenue increase, but your commission earns starts to decrease. Because if a guy could, let us say, buy ZAR 100 for 10 megawatts, ZAR 100 today would give him 8 megawatts, but he cannot afford more than ZAR 100. So we are seeing an increase in our revenue and a decrease in the consumption of megawatts being consumed, hence the reason for pivoting and changing the business model in terms of driving additional revenue from other aspects within the municipal framework. You have these three-year agreements with different tenure points for each commission earned agreement. They are renewing on a regular base.

Speaker #1: So, we're seeing an increase in our revenue and a decrease in the consumption of megawatts. Hence the reason for pivoting and changing the business model—in terms of driving additional revenue from other aspects within the municipal framework.

Speaker #1: So you have these three-year agreements where different ten-year points were each commission-earned agreements. They're renewing on a regular basis. But what we are seeing is a much bigger appetite in terms of finding the lost or stolen electricity, and that will more than compensate for any loss in electricity vending commissions.

Mark Levy: What we are seeing is a lot bigger appetite in terms of finding the lost or stolen electricity, and that will more than compensate for any loss in electricity vending commissions.

Speaker #3: Thank you, Mark. The second part of Precious's question is to you, Dean. The group invested $474 million in intangible assets during the year.

Brett Levy: Thank you, Mark. The second part of Prash's question to you, Dean. To you, Dean. The group invested ZAR 474 million in intangible assets during the year. How much relates to Cell C, CEC? How much is genuine growth investment, and how much is recurring expenditure required simply to maintain the existing Blu platforms? What should we assume is sustainable annual maintenance CapEx?

Speaker #3: How much relates to Cell C CEC? How much is genuine growth investment, and how much is recurring expenditure required simply to maintain the existing Blue platforms?

Speaker #3: What should we assume as sustainable annual maintenance capex?

Speaker #4: Thanks. So, if I can start with that—as you mentioned, the R474 million was the intangible asset additions. Of that amount, R136 million related to Cell C and CEC. So just to put it in perspective, we consolidated Cell C for three months, and in those three months we would bring on their balance sheet.

Dean Suntup: Thanks. If I can start with that, as you mentioned, the ZAR 474 million was the intangible asset additions. Of that amount, ZAR 136 million related to Cell C and Comm Equipment Company. Just to put in perspective, we consolidated Cell C for 3 months, and in those 3 months, we would bring on their balance sheet. Their additions was ZAR 152 million, and Comm Equipment Company's addition was ZAR 119 million, which is ZAR 272 million. Of the ZAR 474 million, what relates to the core Blu Label would be ZAR 202 million. As you are aware, we have a Blue Sky platform, which is our operating platform. We have spent quite significant additions in the current year, with regards to modernizing all these platforms. That would be the reason why it will be higher this year than next year.

Speaker #4: So their additions were $152 million, and CEC's addition was $119 million, which is $272 million. So, of the $474 million, what relates to the core blue would be $202 million.

Speaker #4: Now, as you're aware, we have a Blue Sky platform, which is our operating platform. We have made quite significant additions in the current year with regards to modernizing all these platforms.

Speaker #4: So, that would be the reason why it will be higher this year than next year. So, if we say we've got $201 million of additions relating to intangible assets in the current year, of the $141 million which is the fixed assets, $69 million related to Blue Label.

Dean Suntup: If we say we got ZAR 201 million of additions relating to intangible assets in the current year of the ZAR 141 million, which is the fixed assets, ZAR 69 million related to Blu Label. In next year, we actually envisage this figure to be substantially lower to approximately just below ZAR 100 million.

Speaker #4: In next year, we actually envisage this figure to be substantially lower, to approximately just below 100 million rand.

Speaker #3: Thank you, Dean. Next question is from Johan Bars. Hi, Johan. Hopefully I've pronounced the surname correctly—sorry if I didn't. Your normalized EBITDA fell from about $535 million in the first half to roughly $387 million in the second half.

Brett Levy: Thank you, Dean. Next question is from Johann Baas. Hi, Johann. Hopefully, I pronounced the surname correctly. Sorry if I didn't. Your normalized EBITDA fell from about ZAR 535 million in the H1 to roughly ZAR 387 million in the H2. What changed so sharply between the two halves, and is H2 now the better indication of the underlying earnings base? Back to you, Dean.

Speaker #3: What changed so sharply between the two halves, and is H2 now the better indication of the underlying earnings base? Back to you, Dean.

Speaker #4: Yes, so I think definitely H2 won't be the half that we need to look at. You need to look at both halves. If we look at it in a normal perspective, normally our first half is 55% and our second half is 45%.

Dean Suntup: Yes. I think definitely H2 won't be the half that we need to look at. You need to look at both halves. If we look at it in normal perspective, normally our H1 is 55%, and our H2 is 45%. As you mentioned, there was quite a significant drop to ZAR 387 million. I think this needs to be looked at directly together with the Sisonke deal that we have. With regards to the cash that we get from the Sisonke deal, what that will result in is additional EBITDA margins, because naturally when we have that cash, we can utilize it within our trading operations.

Speaker #4: Now, as you mentioned, there was quite a significant drop to 387 million. I think this needs to be looked at directly together with the Sazonke deal that we have.

Speaker #4: With regards to the cash that we get from the Sazonke deal, what that will result in is additional EBITDA margins because, naturally, when we have that cash, we can utilize it within our trading operations.

Speaker #4: So, when you look at our normalized EBITDA of R922 million in the current year, next year on our budget we would have taken our EBITDA higher than that, because we would have the cash—which we will be receiving the cash in—and ultimately we will then earn a higher EBITDA and a lower interest cost.

Dean Suntup: When you look at our normalized EBITDA of ZAR 922 million in the current year, next year on our budget, we would have taken our EBITDA higher than that because we would have the cash, which we will be receiving the cash in, and ultimately we will then earn a higher EBITDA and a lower interest cost. On the ZAR 922, EBITDA will grow, and then the interest cost will come down.

Speaker #4: So, on the 9/22, EBITDA will grow, and then the interest cost will come down.

Speaker #3: Thank you, Dean. The next question is from Dylan Bradfield. How's it, Dylan? Is there any update on the BE loan? Okay, we've dealt with that.

Brett Levy: Thank you, Dean. The next question is from Dylan Bradfield. How's it, Dylan? Is there any update on the BEE loan? We've dealt with that. The AFS mentioned another 6 months. It's all on the Sisonke. I think we've answered that, so hopefully that puts that one to bed. The next question is from Johann van Rhyn. Note 1.4 discloses finance income of ZAR 277 for FY2026, of which ZAR 223 is related to partly interest received from Cell C. Note 9, loans to associated joint ventures were null at 31 May, following the debt waive and the pre-listing restructuring. Is the ZAR 223 of interest income included in the normalized net profit after tax of ZAR 677 and the core headline earnings of ZAR 681, i.e., ZAR 0.75 a share? If it is, what is the FY2027 starting core headline earnings base once it falls away and once it replaces it?

Speaker #3: The AFS mentioned another six months. Okay, it's all on the Sazonke. I think we've answered that, so hopefully that puts that one to bed.

Speaker #3: The next question is from Johan van Reijn. Note 1.4 discloses finance income of 277 for FY26, of which 223 is related to, partly, interest received from Cell C.

Speaker #3: Note 9, loans to associate and joint ventures, were null at 31st of May following a debt wave in the pre-listing restructuring. Is the 223 of interest income included in the normalized net profit after tax of 677 and the core headline earnings of 681, i.e., 75 cents a share?

Speaker #3: If it is, what is the FY27 starting core headline earnings base once it falls away, and once it replaces it? So in essence, over to you, Dean.

Brett Levy: In essence, over to you, Dean. Is it included in the ZAR 677 million core?

Speaker #3: Is it included in the 677 million core?

Speaker #4: So, as you mentioned, Johan, those related to the Cell C debt funding instruments—we have excluded all the debt funding instruments from the normalization.

Dean Suntup: As you mentioned, Johann, those relate to the Cell C debt funding instrument. We have excluded all the debt funding instruments from the normalization. What you would find next year is a lower finance income. We also, against that, we would have eliminated Cell C's interest income, which was ZAR 159 million of that during the year. Next year, you'd find the lower finance income. All recapitalization transactions and listing costs have been taken out of that ZAR 681 million. That is our normalized core headline earnings.

Speaker #4: So, what you would find next year is a lower finance income. Also, against that, we would have eliminated Cell C's interest income, which was R159 million during the year.

Speaker #4: So, next year you’d find that lower finance income, all recapitalization transactions, and listing costs have been taken out of that $681 million. That is our normalized core headline earnings.

Speaker #3: Thank you, Dean. This is a question that's come up quite often during the day and throughout the time as well, so we will clarify it clearly now.

Brett Levy: Thank you, Dean. This is a question that has come up quite often during the day and throughout the time as well. We will clarify it obviously clearly now. It is to do with our debt position. From Johann van Rhyn again. Note 3.2.2 states that the total consolidated debt to adjusted consolidated EBITDA covenant steps down from 3.5 times as of 31 May to 2.5 times for all measurement periods expiring thereafter. Against gross borrowings of ZAR 4.67 billion, a 2.5 times test implies adjusted consolidated EBITDA of approximately ZAR 1.87 billion versus normalized EBITDA of ZAR 923 million. Could you please define adjusted consolidated EBITDA as it is used in facility agreements, in particular, whether it includes Blu Label share of Cell C's earnings or EBITDA? What was the actual ratio as of 31 May, and what headroom do you expect at the next measurement date?

Speaker #3: It's to do with our debt position, from Johan again. Note 3.2.2 states that the total consolidated debt to adjusted consolidated EBITDA covenant steps down from 3.5 times.

Speaker #3: As of the 31st of May, to 2.5 times for all measurement periods expiring thereafter. Against gross borrowings of R4.67 billion, a 2.5 times test implies adjusted consolidated EBITDA of approximately R1.87 billion versus normalized EBITDA of R923 million.

Speaker #3: Could you please define adjusted consolidated EBITDA as it is used in facility agreements in particular where that includes blue label share of Cell C's earnings or EBITDA?

Speaker #3: What was the actual ratio as of the 31st of May, and what headroom do you expect at the next measurement date? Over to you, Dean.

Brett Levy: Over to you, Dean.

Dean Suntup: Well, if we look at it, if I can start with regards to the Cell C earnings. In our calculations with regards to our debt to EBITDA, we do not include Cell C's EBITDA in those calculations with the banks. If I can then start by then analyzing our debt profile. As you mentioned, we have ZAR 4.7 billion of debt. I think the key here is to split that debt up. Firstly, we have ZAR 2.7 billion of working capital facilities, as we have always mentioned to everyone. Further over and above that, we have approximately ZAR 1.9 million at 31 May that is used for trading facilities. When we calculate our EBITDA to debt ratios with the banks, they exclude the 1.9. They understand that that is just trading, where we buy stock, get certain deals.

Speaker #4: Okay. So, if we look at it, if I can start with regards to the Cell C earnings—in our calculations with regards to our debt to EBITDA, we do not include Cell C's EBITDA in those calculations with the banks.

Speaker #4: If I can, then, start by analyzing our debt profile—as you mentioned, we have R4.7 billion of debt. I think the key here is to split that debt up.

Speaker #4: So firstly, we have R2.7 billion of working capital facilities, as we've always mentioned to everyone. Further, over and above that, we have approximately R1.9 billion at the 31st of May that's used for trading facilities.

Speaker #4: So, when we calculate our EBITDA or our EBITDA-to-debt ratios with the banks, they exclude the 1.9. They understand that that is just trading, where we buy stock and get certain deals. As we've always mentioned, we do early settlement deals and large bulk discounts.

Dean Suntup: As we have always mentioned, we do early settlement deals and large bulk discounts, so they do not include it. If we look at our calculations with regards to the 2.5, those can be met. We have always met our covenants with the banks. Actually, at 31 May, you would know that the covenants was 3.5. We were below that. What we also do include in our calculations with the banks on the covenant calculations is any guarantees that we have out from, for example, Lombard or any Investec. Any non-cash back guarantees, we still need to include that in our calculation, which amounts to approximately ZAR 412 million. So we are significantly below our 3.5. We were at 2.88, and going forward, it will be below the 2.5 mark.

Speaker #4: So they don't include it. If we look at our calculations with regards to the 2.5, those can be met. We've always met our covenants with the banks.

Speaker #4: Actually, at the 31st of May, you would know that the covenant was 3.5. We were below that. What we also do include in our calculations with the banks on the covenant calculations is any guarantees that we have out from, for example, Lombards or any Investec—any non-cash-backed guarantees.

Speaker #4: We still need to include that in our calculation, which amounts to approximately 412 million rand. So we are significantly below our 3.5; we were at 2.88, and going forward, it will be below the 2.5 mark.

Speaker #3: Thank you Dean.

Brett Levy: Thank you, Dean.

Speaker #4: Sorry Brett, just one thing with regards to that—the 2.5. When we calculated the 2.5, we looked forward. So, we take into account, as I mentioned, with regards to the cash coming in, naturally our EBITDA will grow significantly from the 922, and thus it will be below the 2.5 mark.

Dean Suntup: Sorry, Brett, just one thing with regards to that is the 2.5. When we calculated the 2.5, we looked forward. We take into account, as I mentioned, with regards to the cash coming in. Naturally, our EBITDA will grow significantly from the 922, and thus it will be below the 2.5 mark.

Brett Levy: No forward-looking statements, Dean. Okay. Over to the next question. Omair Khan from Anchor Capital. Omar, how are you? On capital allocation, at what share price or P/E multiple does the buyback become attractive for the group, and consequently, when does the share price or P/E multiple become unattractive for the group? It is obviously a very good question, Omar. Obviously, markets can have a view. From a board point of view, it is extremely attractive at the current price for us. Maybe it is a good discussion to have somewhere down the line when you work in what Cell C's earnings in Blu Label will be and our own earnings to the current price. I think it speaks for itself. In short, we will continue buying as long as we see it attractive. The price, the board will determine this on an ongoing basis.

Speaker #3: No forward-looking statements, Dean. Okay, so over to the next question. Omer Khan from Anchor Capital. Omer, how are you? On capital allocation, at what share price or P/E multiple does the buyback become attractive for the group, and consequently, when does the share price or P/E multiple become unattractive for the group?

Speaker #3: It's obviously a very good question, Omer. Obviously, markets can have a view. From a board point of view, it is extremely attractive at the current price for us.

Speaker #3: Maybe it's a good discussion to have somewhere down the line when you work in what Cell C's earnings, in Blue Label, be, and our own earnings to the current price. I think it speaks for itself.

Speaker #3: So, in short, we will continue buying as long as we see it as attractive. The price—the board will determine this on an ongoing basis.

Speaker #3: So, not at a set time—quarterly or six-monthly. It will be on an ongoing basis, and as long as we find it attractive—and I think, in some cases, it speaks for itself—we will continue with it.

Brett Levy: Not a set time quarterly or six-monthly. It will be an ongoing basis. As long as we find it attractive, and I think in some cases it speaks for itself, we will continue with it. If we should happen to stop it, we will obviously inform the market that we are stopping it, but not for now. The next question is from Dylan Bradfield. Blu has some big one-offs through the income statement, ZAR 140 million from fair value loss on B derivative instruments and ZAR 115 million on doubtful debts. There was some other one-offs nearing ZAR 45 million. Can we normalize some of these for FY27? I think, Dean, sorry, just on this also, just clarify what the ZAR 115 million on doubtful debts is.

Speaker #3: If we should happen to stop it, we will obviously inform the market that we are stopping it, but not for now. The next question is from Dylan Bradfield.

Speaker #3: Blue has some big one-offs through the income statement: $140 million from fair value yield loss on B derivative instruments and $115 million on doubtful debts.

Speaker #3: There were some other one-offs nearing $45 million. Can we normalize some of these for FY27? And I think, Dean—sorry, just on this—also, can you clarify what the $115 million on doubtful debts is?

Speaker #4: Yeah. So, thanks, Dylan. Let's start with the Sazonki. As you know, we raised the IFRS 2 charge with regards to Sazonki, which was a written call option.

Dean Suntup: Yeah. Thanks, Dylan. Let us start with the Sisonke. As you know, we raised the IFRS 2 charge with regards to Sisonke, which was a written call option. Once we do the restructuring financing, as Brett mentioned earlier, with regards to Sisonke, the ZAR 140 million will fall away out of our accounts. We will not have the ZAR 140 million with.

Speaker #4: Once we do the restructuring financing, as Brett mentioned earlier with regards to Sazonki, the 140 will fall away out of our accounts.

Speaker #4: So we won't have the 140. With what one? No, 140 with regards to Sazonki. Sazonki. If we look at our bad debts, I'm not sure with regards to the 115, but what we do have included in our bad debts is a figure of 215 million rand.

Brett Levy: $114.

Dean Suntup: What, one?

Brett Levy: $114.

Dean Suntup: No, ZAR 140 million with regards to Sisonke. If we look at our bad debts, I am not sure with regards to the ZAR 115 million, but what we do have included in our bad debts is a figure of ZAR 215 million. It is ZAR 216 million, of which of that ZAR 216 million, ZAR 210 million relates to CEC. With regards to our bad debts or ECLs, going forward, as we mentioned, it is a simplified business, and the ECL will be very small in FY20.

Speaker #4: It's $216 million, of which $210 million relates to CEC. So, with regards to our bad debts or ECLs going forward, as we mentioned, it's a simplified business, and the ECL will be very small in FY27.

Speaker #3: So, in essence, the bad debts are only to CEC.

Brett Levy: In essence, the bad debt is only to CEC.

Speaker #4: It relates specifically.

Dean Suntup: It relates specifically.

Speaker #3: Blu Label really has a minimal amount of bad debts in the group.

Brett Levy: Blu Label rarely has a minimal amount of bad debts in the group.

Dean Suntup: Correct.

Speaker #4: Correct.

Speaker #3: Okay, the next question is from Press again. It's been answered. Basically, it was: how much did we make from revenue assurance for the past year, which Mark answered— a net of R66 million.

Brett Levy: Okay, the next question is from Prash again. It has been answered. Basically, how much did we make from revenue assurance for the past year, which Mark answered, a net of ZAR 66 million. So as you can see, obviously, it is becoming a serious number in our world. The next question is from Paul Whitburn. How is it, Paul? "Hi, Brett. When do you expect the receipt of cash from Sisonke?" Okay, I think we have answered that. "Why have you not disclosed the absolute rand amount of the share buybacks?" As explained already. "Why not unbundle Cell C to shareholders to unlock value and increase liquidity for Cell C?" Okay, this is a great question, by the way. Not that the rest were not. They were all good, right? So let us start with why now, right?

Speaker #3: So, as you can see, obviously it's becoming a serious number in our world. The next question is from Paul Whitburn. How's it, Paul? Hi, Brett.

Speaker #3: When do you expect the receipts of cash from Sazonki? Okay, I think we've answered that. Why have you not disclosed the absolute rand amount of the share buybacks, as explained already?

Speaker #3: Why not unbundle Cell C to shareholders to unlock value and increase liquidity for Cell C? Okay, this is a great question, by the way.

Speaker #3: Not that the rest weren't. They were all good, right? So let's start with "why now," right? As you are all aware, Blue Label is in a lockout period until the 27th of November of this year.

Brett Levy: As you are all aware, Blu Label is in a lockout period until 27 November of this year. When we listed Cell C, we obviously put ourselves in a lockout period for 12 months that we were not able to sell or do anything with our Cell C shares. So that is obvious reason why you have seen nothing till date, and you will not see anything until the end of the year. More importantly, if you read our new dividend policy, it reads like this. From a Blu Label core point of view, whatever we earn, not cash generated, Blu Label will pay out 30% to 50% of our profits in a cash dividend. Over and above that, we have entered into a share buyback program.

Speaker #3: When we listed Sell C, we obviously put ourselves in a lockout period for 12 months, during which we weren't able to sell or do anything with our Sell C shares.

Speaker #3: So that is the obvious reason why you've seen nothing to date, and you won't see anything until the end of the year. More importantly, if you read our new dividend policy, it reads like this.

Speaker #3: From a Blue Label point of view, whatever we earn, not cash generated, Blue Label will pay out 30 to 50% of our profits in a cash dividend.

Speaker #3: Over and above that, we've entered into a share buyback program. Over and above that, whatever dividends that Blue Label receives from Cell C, we will pay out between 50% and 70%.

Brett Levy: Over and above that, whatever dividends that Blu Label receives from Cell C, we will pay out between 50% and 70%, so higher than our own dividend ratio, and that will be paid out either in cash or in a dividend in species to our shareholders, and therefore, returning value to the Blu Label shareholders. Over and above that, to your question of unbundling it, these are discussions that will take place for the next couple of years. It is a great question. There is obviously a certain amount of money that Blu Label, the company, will always like to get back because of the money that they injected into Cell C, and that goes into our own debt and our own trading and obviously makes a massive difference in our world. Then, of course, your question will always be on the excess of that amount.

Speaker #3: So, higher than our own dividend ratio. And that will be paid out either in cash or in a dividend in specie to our shareholders, and therefore returned in value to the Blue Label shareholders.

Speaker #3: Over and above that, to your question of unbundling it, these are discussions that will take place over the next couple of years. It's a great question.

Speaker #3: There's obviously a certain amount of money that Blue Label, the company, will always like to get back because of the money that they injected into Cell C.

Speaker #3: And that goes into our own debt and our own trading and obviously makes a massive difference in our world. And then, of course, your question will always be on the—And I can tell you that our board will consider it seriously and is already considering it.

Brett Levy: I can tell you that our board will consider it seriously and is already considering it. That unlocks the liquidity, of course, as well of the Cell C. As we know, there is no liquidity in Cell C or very little liquidity in Cell C, and that is waiting, obviously, for the unlock from us. From our side, by the way, whatever we choose to do will be done in a very responsible manner. It will be done with the market knowing way in advance what we are doing, if possible. Of course, there will be no panic and no anything because there is no panic. Blu Label is very satisfied where Cell C is. We think that their results were, in our estimation, exactly to what was promised in the P&L.

Speaker #3: And that unlocks the liquidity, of course, as well for the Sell C. So as we know, there's no liquidity in Sell C, or very little liquidity in Sell C.

Speaker #3: And that is waiting, obviously, for the unlock from us. And from our side, by the way, whatever we choose to do will be done in a very responsible manner.

Speaker #3: It will be done with the market knowing in advance what we are doing, if possible. And, of course, there will be no panic or anything, because there’s no panic.

Speaker #3: Blue Label is very satisfied with where Sell C is. We think that their results were, in our estimation, exactly what was promised in the PLS.

Speaker #3: We think they are positioned really nicely in the market, and we really think that Cell C is going to do well. So we're going to watch the space carefully from our side.

Brett Levy: We think they are positioned really nicely in the market, and we really think that Cell C is going to do well. So we are going to watch this space carefully from our side. The next question of Paul's was, "How far we are the earnings from" Okay, we have answered that. Revenue assurance. Sorry. Your last question is probably the most interesting question, and I will leave it to the market to actually answer. But how different is Blu core business compared to Flash and Shop2Shop? What are the comments on the valuation of core Blu business excluding Cell C and the implied 24 times P/E multiple assumed for Flash in the proposed merger with Shop2Shop? I am going to leave that to the market to do their own work on Flash to Flash and Shop and Pep's type. They are a very good competitor in certain ways to us.

Speaker #3: The next question of Paul's was how far we are with the earnings from—okay, we've answered that: revenue assurance, sorry. And your last question is probably the most interesting question.

Speaker #3: I'll leave it to the market to answer, but how different is the Blue Core business compared to Flash and Shop-to-Shop types?

Speaker #3: What are the comments on the valuation of Core Blue Business excluding Sell C and the implied 24 times PE multiple assumed for Flash in the proposed merger with Shop to Shop?

Speaker #3: I'm going to leave that to the market to do their own work on Flash-to-Flash and Shop and Peps type. They are a very good competitor in certain ways to us.

Speaker #3: They run a great business, but 90% of what we actually do in the market is very different from them. We all play in the same market, but very differently.

Brett Levy: They run a great business. But 90% of what actually we do in the market is very different to them. We all play in the same market, but very differently, if I can say that. There are pieces across each other and we all coexist. It is a big market. But they specifically in their market, in the informal market, their drop safes, their POS terminals, their closed loop environment of how they do buying and selling. Take nothing away from them. It is a very, very good business, Shop2Shop. But I doubt that they should be on their P/E and we should be on our P/E, which means I am not marking their P/E, I am just not so sure the difference between them and us is realistic. But let time tell and let the market talk for itself, of course. The next question is from Hashim Amla.

Speaker #3: If I can say that there are pieces across each other and we all coexist, it's a big market. But they, specifically in their market—in the informal market—they drop safes, they post terminals, they close loop environment of how they do buying and selling.

Speaker #3: Take nothing away from them. It's a very, very good business—shop to shop. But I doubt that they should be on their PE and we should be on our PE, which means I'm not mocking their PE.

Speaker #3: I'm just not so sure the difference between them and us is realistic. But let Tom tell it, and let the market speak for itself, of course.

Speaker #3: The next question is from Ellen Emler. Can you give us an indication of your growth in monetary terms for new projects that the market has spoken about for '26, '27, and '28? In essence, what money do we require for capex rollout?

Brett Levy: Can you give us indication of your growth in money terms for new project that Mark has spoken about, 2026, 2027, and 2028? In essence, what money do we require for CapEx rollout?

Speaker #1: So, from an income generation point of view, we don't see significant income generation in this financial year, because these projects can take between 6 and 18 months to get going.

Mark Levy: From an income generation point of view, we don't see significant income generation in this financial year, because these projects can take between 6 and 18 months of going. There's been a lot of interest in funding these projects, and because we're generating a lot of cash within the municipalities and can use those to securitize the installments. We're seeing a nice request to advance up to 90%, even up to 100% of each project because of the cash certainty that we have. So our CapEx demands, we don't foresee it being a massive drawdown on Blu Label. In some cases, we may have very, very little drawdown on the CapEx side.

Speaker #1: There's been a lot of interest in funding these projects. And because we're generating a lot of cash within the municipalities and can use those to securitize the installments, we're seeing a nice request to advance up to 90%, even up to 100%, of each project because of the cash.

Speaker #1: Certainty that we have. So, our capex demands—we don't foresee it being a massive drawdown on Blue Label. And in some cases, we may have very, very little drawdown on the capex side.

Speaker #3: Thank you, Mark. By the way, if I miss one or two of the questions, it's not purposeful; they overlap, I think, with a lot of the questions that we've already answered.

Brett Levy: Thank you, Mark. By the way, if I miss one or two of the questions, it's not purposely. They overlap, I think, with a lot of the questions that we've answered. The next question is from Jonathan Kennedy-Good. Can you comment as to whether Blu Label share buyback will commence immediately? The answer is yes. The guidance of the share buyback we've spoken to. Will it commence immediately? The answer is yes. Next question is from Nick Kricher. It is still very difficult to determine earnings power and cash flow. Can you provide some guidance at the EBITDA level? I think we've done that, so I think we're good. The difficult part, and I know it's becoming repetitive from our side, but we mentioned it again in our February results. It was a complicated transaction, Cell C.

Speaker #3: The next question is from Jonathan Kennedy. Good. Can you comment as to whether Blue share buyback will commence immediately? The answer is yes. The guidance of the share buyback we've spoken to.

Speaker #3: But will it commence immediately? The answer is yes. The next question is from Nick Krieger: It is still very difficult to determine earnings power and cash flow.

Speaker #3: Can you provide some guidance at the EBITDA level? I think we've done that, so I think we're good. The difficult part—and I know it's become a bit repetitive from our side—but, you know, we mentioned it again in our February results.

Speaker #3: The unbundling—it was a complicated transaction to sell C. It was a complicated seven years to let Sell C get to the position of survival.

Brett Levy: It was a complicated 7 years to let Cell C get to the position of survival. Not only survival, but to listing to an EBITDA, which you've seen it's created, to a profit that you've seen it's making, and obviously to a debt ratio. I exclude CEC out of it because it's a separate book that's against the handsets to a very low level of debt. I think with that, and I'm not quite sure how many people thought that we could get Cell C back, that people thought that Cell C would survive. Not only survive, that it's here to stay, and it's here to play an important part in this market. In doing so, it complicated our results. We understand that. We know that they were very complicated. We tried to simplify them, but we couldn't.

Speaker #3: Not only survival, but to list into an EBITDA, which you've seen, it's created to a profit that you've seen it's making. And obviously to a debt ratio, and I'll exclude CEC out of it because it's a separate book that's against the handsets.

Speaker #3: To a very low level of debt. You know, I think with that—and I'm not quite sure how many people thought that we could get Cell C back—people thought that Cell C would survive.

Speaker #3: And not only survived, it's here to stay and it's yet to play an important part in this market. In doing so, it complicated our results.

Speaker #3: We understand that. We know that they were very complicated. We tried to simplify them, but we couldn't. But it comes with the territory of what we were dealing with.

Brett Levy: It comes with the territory of what we were dealing with. We made it clear that this is our last complicated result, and I can assure you as the market are not looking as forward as the three of us that are sitting at this table for our February results, where they are not complicated, where they are much more simplified and exactly how the results should be presented, and we look forward to it as much as everybody else. The next question is from Paul Whitburn. "Was there any earnings from the treasury function in the H2?" No, is the answer. We are waiting for the Sisonke money to come in. Obviously, it is a big check for us. It is a big number in our world. The second part of it is: "Any indication what this could bring in the year ahead?

Speaker #3: We made it clear that this is our last complicated results, and I can show you that the market is not looking as forward as the three of us sitting at this table for our February results.

Speaker #3: Where they are not complicated, where they are much more simplified, and exactly how the results should be presented. And we look forward to it as much as everybody else.

Speaker #3: The next question is from Paul Whitburn: Was there any earnings from the Treasury function in the second half? No is the answer. We are waiting for the Sasongki money to come in.

Speaker #3: Obviously, it's a big check for us. It's a big number in our world. And the second part of it is: any indication of what this could bring in the year ahead?

Speaker #3: I think I've mentioned it before, so I'm going to say it again: Blue Label looks to return anywhere between 18% and 26% on all cash that we have that is free.

Brett Levy: I think I have mentioned it before, so I am going to say it again. Blu Label looks to return anywhere between 18% and 26% on all cash that we have that is free. So it is a very big number in our world. The next question is from Johan again. "Can you quantify how much of" Sorry, Johan. Okay, it is a little bit different, this question. I am not sure we can break this up for you now. I am happy to have a separate chat. Johan's question is: "Of the normalized EBITDA of ZAR 923 million, what is generated traditionally by the airtime and data distribution businesses after adjusting for minority interests?" Do you want to answer it separately?

Brett Levy: I think I have mentioned it before, so I am going to say it again. Blu Label looks to return anywhere between 18% and 26% on all cash that we have that is free. So it is a very big number in our world. The next question is from Johan again. "Can you quantify how much of" Sorry, Johan. Okay, it is a little bit different, this question. I am not sure we can break this up for you now. I am happy to have a separate chat. Johan's question is: Of the normalized EBITDA of ZAR 923 million, what is generated traditionally by the airtime and data distribution businesses after adjusting for minority interests? Do you want to answer it separately?

Speaker #3: So, it is a very big number in our world. The next question is from Johan again. Can you quantify how much of—sorry. Okay.

Speaker #3: This is a little bit different, this question. I'm not sure we can break this up for you now. I'm happy to have a separate chat, but Johan's question is on the normalized EBITDA of $923 million.

Speaker #3: What is generated traditionally by the airtime and data distribution businesses after adjusting for minority interest? Do you want to answer that separately?

Speaker #2: Yeah, we'd prefer to answer that separately also, as it's confidential information with regards to margins. Agreed. You can break it up.

Dean Suntup: Yeah, we would prefer to answer that separately also, as it is confidential information with regards to margins.

Brett Levy: Sure.

Dean Suntup: Agreed.

Brett Levy: Perfect.

Dean Suntup: We can break it down separately.

Brett Levy: Happy to have a separate chat, Johann. Obviously answer what we can and what is not under confidentiality. The next question is from Philip Short. How should we see new electricity projects contributing to the earnings in 2027 and beyond?

Speaker #3: Happy to have a separate chat, Johan. And, obviously, we'll answer what we can and what's not under confidentiality. The next question is from Philip Short.

Speaker #3: How should we see new electricity projects contribute to earnings in 2027 and beyond?

Speaker #1: It's a great question. So, it all depends on how quickly we can get these projects up and running. But they should have a meaningful contribution to earnings.

Mark Levy: It is a great question. This all depends on how quick we can get these projects up and running, but they should have a meaningful contribution to earnings. That we are talking about from June 2027 onwards. That would provide specifically on the Blu Energy an annuity income for between 3 and 10 years. On the revenue assurance, also between 3 and 10 years. So both setups can significantly change and add to our earnings.

Mark Levy: It is a great question. This all depends on how quick we can get these projects up and running, but they should have a meaningful contribution to earnings. That we are talking about from June 2027 onwards. That would provide specifically on the Blu Energy an annuity income for between three and 10 years. On the revenue assurance, also between three and 10 years. So both setups can significantly change and add to our earnings.

Speaker #1: And that's what we're talking about from June 2027 onwards. And that would provide specifically on the Blue Energy and annuity income for between 3 and 10 years.

Speaker #1: And on the revenue assurance, also between three and ten years. So both projects, both setups, can significantly change and add to our earnings.

Speaker #3: Thank you, Mark. Two more questions, unless you send him more that we're sitting with at least. Jonathan Kennedy. Good. Management mentioned that our cash generation is around R60 million per month in the core business.

Brett Levy: Thank you, Mark. Two more questions, unless you see any more that we are sitting with, at least. Jonathan Kennedy-Good, "Management mentioned that our cash generation is around ZAR 60 million per month in the core business. A few questions. Number 1, is that the current rate already? How much of that is going to be deployed in treasury versus used to the buyback?" Do not answer the second one, answer the first one.

Brett Levy: Thank you, Mark. Two more questions, unless you see any more that we are sitting with, at least. Jonathan Kennedy-Good, management mentioned that our cash generation is around ZAR 60 million per month in the core business. A few questions. Number one, is that the current rate already? How much of that is going to be deployed in treasury versus used to the buyback? Do not answer the second one, answer the first one.

Speaker #3: A few questions. Number one: is that the current rate already? How much of that is going to be deployed in Treasury versus used for the buyback?

Speaker #3: Please answer the first question, but do not address the second one.

Speaker #2: Yeah. So if we look at it, naturally, we generate slightly more in our first half of the year and slightly less in the second half of the year.

Dean Suntup: Yeah. If we look at it naturally, we generate slightly more in our H1 and slightly less in the H2. If I look at normalization, which is easier to normalize in the H2, because as we mentioned, that was more of a cleaner year, a cleaner half, our free cash flow conversion rate is approximately about 65%. If you look at our cash conversion ratio, it is approximately 82%. So we are still generating cash, as we have always said to you, ultimately this is the reason for now the dividend policy and how we will move forward.

Speaker #2: If I look at normalization, which is easier to normalize in the second half of the year—because, as we mentioned, that was more of a cleaner year.

Speaker #2: A cleaner half. Our free cash flow conversion rate is approximately 65%. And if you look at our cash conversion ratio, it's approximately 82%.

Speaker #2: So, we are still generating cash, as we have always said to you. Ultimately, this is the reason for the current dividend policy and how we will move forward.

Speaker #3: And what is the 62% equator?

Brett Levy: What does the 62% equate to?

Speaker #2: The 60?

Dean Suntup: The 60?

Dean Suntup: The 60%?

Speaker #3: 2% at the equator. That's Jonathan's question in rand value.

Brett Levy: 2% equate to. That is Jonathan's question, the rand value.

Speaker #2: Of the free cash on that side. So it would be approximately in the second half if we had operating activities of approximately 316 million rand.

Dean Suntup: Of the free cash on that side, it would be approximately in the H2 if we had operating activities of approximately 316 million ZAR. So we had cash generated from operating activities of 316, and in the H2, our acquisition of intangibles and PPAs were approximately 120 million ZAR, and that left us with our free cash flow for the six months, which is 182 million ZAR over our normalized profit, as we mentioned, of 282 million ZAR. So that would be the 64%. If you look at your operating cash flow, you would have 316 million ZAR over our normalized EBITDA in the H2 of 387 million ZAR, which would be the 82%.

Dean Suntup: Of the free cash on that side, it would be approximately in the H2 if we had operating activities of approximately ZAR 316 million. So we had cash generated from operating activities of 316, and in the H2, our acquisition of intangibles and PPAs were approximately ZAR 120 million, and that left us with our free cash flow for the six months, which is ZAR 182 million ZAR over our normalized profit, as we mentioned, of ZAR 282 million. So that would be the 64%. If you look at your operating cash flow, you would have ZAR 316 million over our normalized EBITDA in the H2 of ZAR 387 million, which would be the 82%.

Speaker #2: So, we had cash generated from operating activities of R316 million. And in the second half, our acquisition of intangibles and PPAs was approximately R120 million.

Speaker #2: And that left us with our free cash flow for the six months, which is 182 million rand, over our normalized profit as we mentioned of 282 million rand.

Speaker #2: So that would be the 64. If you look at your operating cash flow, you would have R316 million over our normalized EBITDA in the second half of R387 million.

Speaker #2: Which would be the 82%.

Speaker #3: So, approximately $55 million to $60 million, to your question, Jonathan. Okay. And the last question that we have is from Nick Krieger. It is, in my opinion, that the Selfie share price is suffering because of the low float and potential overhang.

Brett Levy: Approximately ZAR 55 to 60 million a month to your question, Jonathan. The last question that we have from Nick Kricher. "It is in my opinion that the SLC share price is suffering because of the low float and potential overhang. These are typical negatives linked to having a two entry points into a share. What is stopping Blu from addressing these issues immediately? Surely, unbundling SLC is an obvious lever to pull to unlock value for Blu and SLC." Agree on all fronts, Nick. As we said, we are in a lockout until 27 November. So it is status quo as it is. It was announced to the market on the listing. There is nothing that has changed from it.

Brett Levy: Approximately ZAR 55 to 60 million a month to your question, Jonathan. The last question that we have from Nick Kricher. It is in my opinion that the SLC share price is suffering because of the low float and potential overhang. These are typical negatives linked to having a two entry points into a share. What is stopping Blu from addressing these issues immediately? Surely, unbundling SLC is an obvious lever to pull to unlock value for Blu and SLC. Agree on all fronts, Nick. As we said, we are in a lockout until 27 November. So it is status quo as it is. It was announced to the market on the listing. There is nothing that has changed from it.

Speaker #3: These are typical negatives linked to having two entry points into a share. What is stopping Blue from addressing these issues immediately? Surely, I'm bundling Cell C, and obviously, I'll leave it to Paul to unlock value for Blue and Cell C.

Speaker #3: Agree on all fronts, Nick. As we said, we're in a lockout until the 27th of November, so it's status quo as it is. It was announced to the market on the listing.

Speaker #3: There's nothing that's changed from it. I do believe SLC puts out their clean results and as Blue Label, we put out our clean results. I'm sure it will unlock interest in SLC.

Brett Levy: I do believe as SLC puts out their clean results and as Blu Label puts out our clean results, I am sure it will unlock interest in SLC, of course. Of course, we will not create an overhang, and I want to just end with it and repeat it. We are not an urgent seller. There is no overhang because we will do it in accordance with the market and responsibly with the market. It will be a discussion, obviously, at our next results because we will then be come out of the lockout as we obviously go into a lockout of our half year results. I think that is it.

Speaker #3: Of course. And, of course, we will not create an overhang. I wanted to end with that and repeat it: we are not an urgent seller.

Speaker #3: There is no overhang, because we will do it in accordance with the market, and responsibly with the market. So, yeah, it will be a discussion, obviously, at our next results.

Speaker #3: Because we will be coming out of the lockout as we obviously go into a lockout of our half-year results. So, I think that's it.

Speaker #3: So just to end, you would have seen an announcement. Our Chairman, Mr. Larry Nestadt, who has been a great mentor to the three of us.

Brett Levy: Just to end, you would have seen an announcement, our chairman, Mr. Larry Nestadt, who has been a great mentor to the three of us, great guidance to this company, has been with us for 19 years, felt that it was just time. I mean, he felt it was just time, 19 years is a good innings, that it was time for him to move on. We just first of all want to thank Larry for really the support and the mentorship over 19 years and the guidance, and that goes for our whole board that is currently there, of course, as well. Then to welcome Lindsay Ralphs, who has taken over from Larry. Last day was our board meeting yesterday, and Lindsay takes over from today. We welcome Lindsay.

Brett Levy: Just to end, you would have seen an announcement, our Chairman, Mr. Larry Nestadt, who has been a great mentor to the three of us, great guidance to this company, has been with us for 19 years, felt that it was just time. I mean, he felt it was just time, 19 years is a good innings, that it was time for him to move on. We just first of all want to thank Larry for really the support and the mentorship over 19 years and the guidance, and that goes for our whole board that is currently there, of course, as well. Then to welcome Lindsay Ralphs, who has taken over from Larry. Last day was our board meeting yesterday, and Lindsay takes over from today. We welcome Lindsay.

Speaker #3: Great guidance to this company has been with us for 19 years. Felt that it was this time—I mean, he felt it was this time, you know. Nineteen years is a good ending.

Speaker #3: That it was time for him to move on. So we just, first of all, want to thank Larry for the support, the mentorship over 19 years, and the guidance.

Speaker #3: And that goes for our whole board that is currently there, of course, as well. And then to welcome Lindsey Ralph, who has taken over from Larry—his last day was our board meeting yesterday.

Speaker #3: And Lindsey takes over from today, and we welcome Lindsey. We think his depth of experience in the Bidvest Group and what he's done throughout his life will be extremely valuable to the Blue Label Group.

Brett Levy: We think he is obviously depth of experience in the Bidvest Group, and what he has done throughout his life will be extremely valuable to Blu Label Group and extremely valuable to Mark and myself and Dean. So welcome, Lindsay, and of course, we look forward to working with you into the future. Then, of course, to the Blu Label staff and employees. It is not simple out there, but you give us 100% or 150% every day, and we thank you tremendously. One question has just come in, and I think it is a good question, so I am going to actually just bring it in. Sorry, I did close out, but it is just a good one to hear. It is from Kaleem Hannibal. It says: How could this year's municipal elections and the upcoming general elections influence CG Cell's municipal revenue recovery model, specifically regarding contract stability?

Speaker #3: And he is extremely valuable to Mark, myself, and Dean. So welcome, Lindsey. And of course, we look forward to working with you into the future.

Speaker #3: And then, of course, to the Blue Label staff and employees. It's not simple out there, but you give us 100%—or 150%—every day.

Speaker #3: And we thank you tremendously. One question has just come in, and I think it's a good question, so I'm actually going to bring it in.

Speaker #3: Sorry, I did close out, but it's just a good one to hear. It's from Kaleem Hannibal, and it says: How could this year's municipal elections and the upcoming general elections influence CG Sales' municipal revenue recovery model, specifically regarding contract stability?

Mark Levy: It's a great question, we're really looking forward to the outcome. I think if you look at where we find ourselves at a municipal level, there seems to be a lot of chaos all over the place, a lot of lacking in service delivery. So a fresh broom sweeps clean. We do believe that there are going to be significant changes within the municipal landscape, I think that for us would bring in a lot of positivity. There's a lot of projects that are very simple to execute, that can provide a meaningful return to those municipalities in a very short space of time, in turn, give them additional cash flow in which to deliver services to their communities they serve. So I think we're very bullish about these municipal elections. We really think a shakeup in some of these municipalities would be good.

Speaker #4: It's a great question, and we're really looking forward to the outcome. I think if you look at where we found ourselves at a municipal level, there seems to be a lot of chaos all over the place.

Speaker #4: A lot of, or lacking in, service delivery. So, you know, a fresh broom sweeps clean. We do believe that there are going to be significant changes within the Munich landscape.

Speaker #4: And I think that, for us, would bring in a lot of positivity. There are a lot of projects that are very simple to execute, that can provide a meaningful return to those municipalities in a very short space of time, and in turn, give them additional cash flow with which to deliver services to the communities they serve.

Speaker #4: So yeah, I think we're very bullish about these municipal elections. We really think a shake-up in some of these municipalities would be good.

Speaker #4: And yeah, I think we're going to look at a new era of hopefully better productivity out of these municipalities, which we can help them achieve with these projects we've been promoting.

Mark Levy: I think we're going to look at a new era of hopefully better productivity out of these municipalities, which we can help them achieve with these projects we have been promoting.

Speaker #3: Thank you, Mark. Thank you, Dean. Thank you, everyone. Wishing you all a great day.

Brett Levy: Thank you, Mark. Thank you, Dean. Thank you, everyone. Wishing you all a great day.

Speaker #4: Thank you.

Mark Levy: Thank you.

Lindsay Ralphs: Thanks.

Dean Suntup: Thanks.

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Full Year 2026 Blu Label Unlimited Group Ltd Earnings Call

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