Chairman's report

Despite tough operating conditions, Blue Label continues to drive financial inclusion and innovation, empowering communities and fostering growth across South Africa's economy. Our commitment to digital transformation and supporting small enterprises remains at the heart of our strategy for sustainable development.

LARRY NESTADT Chairman

Dear Shareholders,

The past year was characterised by major economic fluctuations and tough market conditions. Blue Label, being directly linked to the everyday consumer through our products and services that cater to the mass market and specifically to previously marginalised and disadvantaged communities, has felt these challenges acutely. Nevertheless, we remain committed to optimise serving our partners and customers through digital innovation that is built on robust internal governance, helping to drive a better future for all.

ECONOMIC AND MARKET CONDITIONS

Global economic pressures in South Africa, as in many other developing markets, have been exacerbated by high inflation and the resulting increase in interest rates. These factors had a direct negative impact on consumers. The country's high unemployment rate remains a continual reminder of the work still to be achieved in empowering our communities and the business sector.

In addition, the first nine months of this financial year were characterised by continual and high-level power cuts, which impacted heavily on the ability of consumers and vendors to transact normally and to obtain or deploy services. Fortunately, it appears that South Africans can be more optimistic about the future of our national power grid, with Eskom's loadshedding suspended for the last quarter of Blue Label's financial year. It bodes well for the Group, our customers, our partners, our vendors and the country at large.

COMPANY PERFORMANCE AND STRATEGY

Despite the difficult times, Blue Label has remained true to its main goals by carefully planning the way forward. We continue to focus on new ideas, tech-based answers and more online services, which have helped us maintain and even grow our share in the marketplace. Our capital invested in financial tech has paid off handsomely, with clear steps forward in online transactions and reaching more people in less-served areas. Certain aspects of the business have still faced significant economic challenges, while the reimagination of Cell C has diverted funding that would otherwise have been used for our core operations.

CORPORATE GOVERNANCE

Strong corporate governance plays a central role in Blue Label's management. In the last year, we have focused on enhancing our governance structure to ensure that our choices are clear, enabling us to take responsibility for the outcomes. The Board has kept a sharp eye on the rules when it comes to cybersecurity - an area that is vital to how Blue Label operates. We were pleased to have achieved ISO 27001 certification in the year under review.

We are particularly excited about the new leadership team at Cell C. The company now has a fully fledged and highly capable executive committee in place, headed up by Cell C CEO Jorge Mendes who joined the company with extensive experience in the telecommunications sector. He has assembled a strong senior management team, ensuring the right people are in the right place to take this company into a new era. We welcome Jorge to the fold and are very impressed with what he has already achieved to date. The Company has made considerable strides in improving its operational efficiency, enhancing customer experience and expanding its service offerings.

POSITIVE SOCIAL IMPACTS

Blue Label, at its core, ensures financial inclusion for those who have traditionally had trouble accessing the opportunities that the digital economy presents, including those in the townships and remote villages of our country. Our products and services serve in this market directly.

Our commitment to financial inclusion extends to empowering small and medium enterprises and the informal sector, all of whom form the backbone of our economy. We assist these entrepreneurs in expanding their customer base, increasing their revenues and contributing to the country's overall economic development by offering them a secure and efficient digital payment platform. Blue Label is also committed to procuring from small businesses, especially black- and female-owned enterprises, to support transformation in the country. We place extensive effort on achieving job creation and empowering the communities, particularly through our commitment to supporting local business and skills development.

All of this starts at home, with Blue Label's internal culture and a workforce that feels safe and supported and that moves as one. In 2024, our focus was on investing in our people and culture with a focus on leadership, diversity and talent.

FUTURE OUTLOOK

Looking ahead, we are cautiously optimistic. We will remain focused on building digital reach, driving operational efficiencies and pursuing new market opportunities. We are confident in our ability to successfully navigate the future because of this commitment to innovation, underpinned by a strong financial foundation. We remain optimistic about Cell C's potential to unlock value for shareholders.

ACKNOWLEDGEMENTS

In conclusion, I would like to sincerely thank my colleagues on the Board of Directors for their unwavering support and strategic guidance during these challenging times, as well as the executives for how authentically they are working to take the Group forward in the right way.

My thanks also go to our dedicated employees, whose resilience and commitment have been key to overcoming the difficulties of the past year. Finally, I wish to thank our shareholders for their continued trust and confidence in our Company. Together, we will keep building on our successes and working towards a brighter future.

LARRY NESTADT

Chairman

30 September 2024