Financial results presentation For the year ended 31 March 2016 - PowerPoint PPT Presentation

Financial results presentation For the year ended 31 March 2016

Important information This presentation contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such as “believe”, “anticipate”, “intend”, “seek”, “will”, “plan”, “could”, “may”, “ endeavour ” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. While these forward-looking statements represent our judgments and future expectations, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These include key factors that could adversely affect our businesses and financial performance. We are not under any obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein. 2

STRATEGIC OVERVIEW

FY16 Overview: building platforms to optimise returns TARGET TRANSFORM LEAD IN OPTIMISE HIGH-GROWTH PURSUE SCALE FURTHER INTO ECOMMERCE RETURNS BUSINESS MODELS MOBILE 4

Lead in ecommerce Local leadership positions Global app leadership Global classifieds app sessions/day (m) Segment #1 #1 pos positi itions Tot otal # # of f mar markets ts Classifieds 34 34 40 Naspers B2C 9 11 Schibsted 2.2x 2x Payments 6 16 eBay Source: SimilarWeb *As per Jan 2016. 5

Target high-growth business models Daily net new listings Bus tickets sold Daily net new listings USA Number of orders - Brazil 37% 56% 377% 148% FY15 FY16 Mar 15 Mar 16 W1 W15 Mar 15 Mar 16 Local classifieds Bus ticketing Mobile classifieds Food delivery Source: Company data 6

Pursue scale Classifieds: expanding our footprint Payments: accelerating local growth TPV growth* (%), 2015 – 2016 • Took control of leading Russian classifieds site 148 123 • Launched real estate and car vertical apps in our core markets 46 Russia Turkey India Source: Company data * Currency neutral, i.e. YoY growth reflected in local currencies. 7

Transform further into mobile Further smartphone growth will transform the world Global population (bn) Other Growth to 2020 0.8 2015 53% 0.7 0.8 2.6 7.2 5.2 4.7 Mobile as a % of total user time 2.4 1.6 spent across Naspers platforms, Q4 FY2016 Population Population over Mobile users Smartphones PC's 16 Source: Worldbank, GSMA, Apple, Google, a16z Source: SimilarWeb 8

Optimise returns Consolidate Reduce development spend Improve unit economics B2C OPEX per order (US$) Ecommerce development spend* as % of revenues (fx neutral) 27% 8.8 6.4 • Merged US operations of letgo and Wallapop • +US$100m in new financing FY15 FY16 • Accelerated path to leadership 39% 33% iFood Brazil EBITDA (US$m) 0.5 (4.5) (9.6) (11.0) • Integrated Fashion Days into eMag business FY15 FY16 1Q15 2Q15 3Q15 4Q15 *Excludes associates, as well as new investments in Letgo and India Hotels. Source: Company data 9

FINANCIALS

Synopsis of financials Revenue* (US$m) Development spend* (US$m) Trading profit* (US$m) Currency impact 6% (22%) 1% (14%) 18% (38%) 1,576 121 362 12,224 961 11,541 953 2,246 1,901 FY15 FY16 FY15 FY16 FY15 FY16 Core headline earnings (US$m) Core HEPS (USc) DPS (ZAR) 21% (49%) 17% 11% 285 298 5.20 4.70 255 1,246 1,030 FY15 FY16 FY15 FY16 FY15 FY16 *Results reported on an economic interest basis, i.e. equity accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. 11

Revenue growth driven by Tencent and ecommerce Incremental revenue* by segment, YoY (US$m) 24% 35% 10% 1% 3% 6% (22%) 14% (4) 590 1,574 394 (295) ( 1,576 ) 12,224 11,541 FY15 Ecommerce Listed investments Video entertainment Media & other M&A Forex FY16 Revenue* by segment (US$m) Revenue* (US$m) 6% (22%) 1,576 12,224 Ecommerce (22%) 11,541 9,919 Listed investments (46%) Video entertainment (28%) Media & other (4%) FY14 FY15 FY16 Currency impact *Results reported on an economic interest basis, i.e. equity accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. 12

Development spend flat on an economic interest basis Incremental development spend* by segment, YoY (US$m) 21% 20% 14% 13% 1% (14%) 193 (202) 138 138 (121) 961 953 FY15 New investments Operating Associates Forex FY16 Consolidated development spend (US$m) Development spend* by segment (US$m) 14% (1%) 103 Classifieds (39%) 820 737 193 Etail (32%) Other ecommerce (18%) 515 Video entertainment (9%) Media (2%) FY14 FY15 FY16 z Currency impact Operating New investments *Results reported on an economic interest basis, i.e. equity accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. 13

Ecommerce continues to gain traction Revenue and trading losses* (US$m) Revenue split 1 2 3 4 5 6 7 8 9 10 Etail (62%) 6% (24%) Marketplace (13%) Naspers Ventures (6%) 397 Classifieds (8%) Payments (5%) Travel (3%) Other (3%) 2,647 2,492 1,986 Constant currency revenue growth by type 28% (31%) 67% 41 (516) (543) (541) 46% (193) 27% FY14 26% FY15 FY16 20% 14% Travel Classifieds Etail Naspers Payments Marketplace Revenue Trading losses New investments Currency impact Ventures *Results reported on an economic interest basis, i.e. equity accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. 14

Profitable ecommerce businesses gaining momentum Number of profitable ecommerce entities Financial progress of profitable entities (US$m) 1 2 3 4 5 6 7 1% (18%) 130 21 33% (48%) 15 774 765 33 288 217 FY15 FY16 FY 15 FY 16 Revenue Trading profit Currency impact 15

VE financials reflective of challenging macro environment Video entertainment (VE) financials* (US$m) 1 2 3 4 5 6 7 8 9 10 11% 3,830 3,582 3,413 17% 841 732 610 FY 14 FY 15 FY 16 Revenue Trading profit Development spend (US$m) Programming and production costs (US$m) Capital expenditure (US$m) 8% 462 206 1,133 1,046 977 166 59% 37% 203 85 127 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 Note: Local content spend increased 12% YoY to ZAR2.9bn *Based on economic interest, i.e. equity accounted investments are proportionately consolidated. 16

Avito a transformational M&A transaction Acquisition spend over time (US$m) FY16 M&A by segment (US$m) 1,495 Various Other Etail 4yr avg US$442m (Mar12 – Mar15) Etail (8%) Classifieds (89%) Naspers Ventures (2%) 465 420 Other (1%) FY14 FY15 FY16 17

Summarised income statement US US$m Ma Mar 15 Ma Mar 16 Revenue* 11,541 12,224 Less: Equity-accounted investments (4,972) (6,294) Consolidated revenue 6,569 5,930 Trading profit 298 179 Trading margin 5% 3% Net finance costs (251) (352) Share of equity accounted results 1,475 1,289 - excluding net gain resulting from remeasurements** 977 1,038 - net gain resulting from remeasurements 498 251 Impairments (98) (341) Taxation (338) (260) Net profit 1,260 1,001 Core headline earnings 1,030 1,246 Core headline EPS (US$) 2.55 2.98 *Based on economic interest, i.e. equity accounted investments are proportionately consolidated. ** Remeasurements refer to business combination-related gains and losses. 18

Free cash flow affected by weaker results from VE outside SA FCF breakdown (US$m) (36) (38) 8 46 (96) 64 (24) FY15 Operating profit Working capital Capex Increased dividends Other FY16 19

Balance sheet strong following equity raise Group net consolidated debt (US$m) US US$m Mar 16 30% 23% 30% 12% 20% Debt (1) : (offshore US$2.9bn) (2,926) 1,994 10% 1,461 0% Cash: (South Africa US$1.2bn) 1,713 1,213 -10% -20% Closing net debt (1,213) - -30% FY14 FY15 FY16 Gearing 12% Net debt Gearing % (1) Excludes satellite lease liabilities (US$836m) and non-interest bearing debt (US$159m) 20

IN INTERNET

B2C: building scale in etail and structured marketplaces B2C: Revenue* (US$) B2C: FY16 GMV by region* 10% (24%) 244 1,988 1,812 1,376 India & SE Asia (29%) Europe (65%) FY14 FY15 FY16 Africa & Middle East (6%) *Includes etail, structured and unstructured marketplaces. Results reported on an economic interest basis, i.e. equity accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. 22

India B2C: Flipkart well positioned Share of time spent in mobile apps (March 2016) 7% Other 18% Leading horizontal B2C platforms in India Snapdeal Amazon 22% Flipkart Flipkart mobile monthly active users (m) 59% 53% Mar 15 Mar 16 Source: SimilarWeb, company data 23