58 slides from Prosus N.v. Class N's earnings presentation, June 2022
Slide 1: Detailed Financials
Detailed Financials For the year ended 31 March 2022
Slide 2: Important information
Important information This report contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995 concerning our financial condition, results of operations and businesses. These forward-looking statements are subject to a number of risks and uncer
Slide 3: Segmental detail
Drosus Segmental detail
Slide 4: Social Networks & Internet
Drosus Social Networks & Internet
Slide 5: Tencent maintains growth despite headwinds
Tencent maintains growth despite headwinds • Tencent continued to growth, albeit at a slower pace, in a year with market 1.27bn (+3.5%) MAUs on Weixin and WeChat combined volatility due to macro economic uncertainty and regulatory change in China. • All Tencent’s business lines contributed to the he
Slide 6: Prosus makes adjustments for core HE similar to Tencent's non-IFRS EPS
Prosus makes adjustments for core HE similar to Tencent's non-IFRS EPS FY21 FY22 Tencent: Dec’20 Prosus’s share Tencent: Dec’21 Prosus’s share Reconciliation from Tencent’s AFS to Prosus’s Core HE (RMB’m)1 (US$’m) (RMB’m)1 (US$’m) Tencent Annual Tencent Annual Report 2020, p.23 Report 2021, p.25 Ten
Slide 7: Classifieds
Drosus Classifieds
Slide 8: Strategic progress augmenting healthy value creation in core
Strategic progress augmenting healthy value creation in core • OLX Group continues to reshape core 124m2,3 app MAUs (+7% YoY) classifieds with category verticalization and provide transactional experiences to 174m2 active listings (+11% YoY) the customer. • Investment into pay & ship (P&S), drove im
Slide 9: Classifieds: Strong positions lead to accelerated value creation in P&S
Classifieds: Strong positions lead to accelerated value creation in P&S Avito: • In May 2022 we announced our intention to exit the Russian business. We have started the search for an appropriate Europe buyer for our shares in Avito. # paying listers +14% YoY # paying listers +4% YoY # paying lister
Slide 10: OLX Autos: Scaling with a focus on dealers and consumers
OLX Autos: Scaling with a focus on dealers and consumers • OLX Autos is scaling quickly, with more Average selling price FY22: US$9 3001 than 22k cars transacted in March 2022, double pre-Covid-19 levels. While all the markets contributed, volumes in the US B2C mix FY22: 29% of transactions2 and Ind
Slide 11: Classifieds growing strongly and investing for the next phase of value creation
Classifieds growing strongly and investing for the next phase of value creation Classifieds: Total segment - Economic interest1 • P&S transactions grew 3.5x in combination at Avito and across Europe, Revenue (US$’m)1,2 Trading profit/(loss) (US$’m)1,2 following an organic investment of OLX Autos US$
Slide 12: Food Delivery
Drosus Food Delivery
Slide 13: Strength at the core of Food Delivery opens QC opportunity
Strength at the core of Food Delivery opens QC opportunity Prosus • Our food platforms continued to grow strongly at the core of the Food Delivery Operations in 57 high growth markets Food Delivery business and are now investing to extend that growth through new initiatives such as quick commerce (Q
Slide 14: iFood: Established core platform with quick commerce to scale quickly
iFood: Established core platform with quick commerce to scale quickly • iFood maintained good growth despite 1P order penetration FY22: 36% increasingly tough YoY comparisons. • Food Delivery orders and GMV increased 317k merchants in Brazil as of Mar’22 31% and 30%, driven by expanded restaurant se
Slide 15: Delivery Hero leveraging strong core to pursue QC opportunity
Delivery Hero leveraging strong core to pursue QC opportunity Integrated Verticals GMV Q1 2022: • DH’s growth was delivered through an +115% YoY acceleration of organic investment into QC4 and integrating recent acquisitions. Glovo acquisition expected to close in Q3 2022 • DH’s core Platform busine
Slide 16: Swiggy: Growth accelerates on strong recovery from Covid
Swiggy: Growth accelerates on strong recovery from Covid • Swiggy has seen a full recovery from the ~300k delivery partners impact of the pandemic as it focused its efforts on reactivating users, increasing >195k restaurant partners monthly frequency, and returning user conversion to pre-Covid-19 le
Slide 17: Profitable core Food Delivery sustaining investment in quick commerce
Profitable core Food Delivery sustaining investment in quick commerce iFood: Total segment - Economic interest1 • iFood’s restaurant delivery business is profitable in Brazil, following continued efficiencies of scale and operational Revenue (US$’m) Trading loss (US$’m) execution. 101% (77%) New ini
Slide 18: Payments & Fintech
Drosus Payments & Fintech
Slide 19: Payments growing strongly and profitably across the globe
Payments growing strongly and profitably across the globe Core payments Fintech • Payments & Fintech benefits from consumers shifting to online financing 20 High growth markets and alternative payments, driving volumes. • India’s growth was driven by diversification of PayU’s merchant portfolio, and
Slide 20: Credit: Scaling credit in India from strong core PSP base
Credit: Scaling credit in India from strong core PSP base 3.1m customers • PayU offers transactional credit and personal loans in India through LazyPay and PaySense. Active on 46k merchant platforms • PayU’s platform provides access to data to implement efficient credit scoring and allows consumers
Slide 21: Payments & Fintech maintained core growth; accelerated credit business
Payments & Fintech maintained core growth; accelerated credit business • Overall, trading loss margin improved Total segment - Economic interest1 4p.p. due to increased profitability of the core PSP business, partially offset by investment into new initiatives. Revenue (US$’m) Trading profit/(loss)
Slide 22: Edtech
Drosus Edtech
Slide 23: Edtech: Workforce companies address corporate demand for training
Edtech: Workforce companies address corporate demand for training Workforce Edtech Ecosystem • Edtech growth is driven by structural B2C Horizontal Layer trends - the shift to digital, rising demand for higher education and reskilling/ with High Accessibility upskilling of the workforce. • Prosus’s
Slide 24: Robust growth and continued investment accelerated Edtech scale
Robust growth and continued investment accelerated Edtech scale • Edtech revenue growth accelerated in FY22, driven by a continued demand for Total Segment1 – StackOverflow, Skillsoft and GoodHabitz acquired in FY22 online learning across our portfolio, especially BYJU’s, Brainly and Udemy. • Stack
Slide 25: Etail
Drosus Etail
Slide 26: Etail: Genius, Easybox, Tazz and Freshful amplifying core etail
Etail: Genius, Easybox, Tazz and Freshful amplifying core etail A leading ecommerce retailer in • eMAG maintained the increased scale Romania, Hungary and Bulgaria developed during the pandemic, despite global supply chain disruptions and Expanded verticals in easing of restrictions. Logistics, Food
Slide 27: eMAG: Scale creates opportunity to advance into new verticals
eMAG: Scale creates opportunity to advance into new verticals • The scaled Romanian etail platform Total segment - Economic interest1 remains profitable despite investment for future value creation into: Revenue (US$’m) Trading profit/(loss) (US$’m) − Doubling warehouse capacity, which is yet to rea
Slide 28: Ventures & Other
Drosus Ventures & Other
Slide 29: Ventures: Investing in disruptive, high growth opportunities
Ventures: Investing in disruptive, high growth opportunities • Prosus Ventures targets opportunities with potential to disrupt large markets Logistics & Mobility Ecommerce & Services that are being founded and funded now. • Prosus Ventures has invested ~US$1.3bn globally and across several industrie
Slide 30: Ecommerce Other - Ventures & Movile
Ecommerce Other - Ventures & Movile Developing the next phase of high growth businesses1 Prosus Ventures: • Revenue more than doubled organically, while scale was also added through M&A transactions, meaning the nominal US$’m FY21 FY22 increase was over seven times. • Pharmeasy was the largest contr
Slide 31: M&A & Events after year-end
Drosus M&A & Events after year-end
Slide 32: Second half investment pivoted to internal assets and our stock
Second half investment pivoted to internal assets and our stock • Significant M&A investments in H1 FY22 include: − Stack Overflow - US$1.7bn Invested mainly externally on M&A… … then pivoted to invest more via our income statement… − Delivery Hero - US$936m − Skillsoft - US$500m − Swiggy - US$274m
Slide 33: Transactions after year-end
Transactions after year-end • PayU agreed to acquire BillDesk for Events after reporting period US$4.7bn at the end of August 2021. The transaction is under review by the Competition Commission of India. Yet to close Closed • In May 2022, Prosus announced its intention to exit its Russian businesses
Slide 34: Financial review
Drosus Financial review
Slide 35: Summary financials: Strong revenue growth with investment
Summary financials: Strong revenue growth with investment Revenue (US$’bn)1 Trading profit (US$’bn) 24% (24%) -10% (-6%) 35.6 5.6 5.0 28.8 FY21 FY22 FY21 FY22 Core HEPS (US¢)1 Free cash flow (US$’m) -17% 126 299 (562) 247 FY21 FY22 FY21 FY22 1 Results reported on an economic-interest basis, i.e. equ
Slide 36: Economic interest segmental detail
Economic interest segmental detail1 Revenue Adjusted EBITDA Trading profit US$’m FY21 FY22 FY21 F22 FY21 FY22 Ecommerce 6 230 9 825 (277) (890) (429) (1 111) - Classifieds 1 599 2 975 67 95 9 25 - Food Delivery 1 486 2 992 (313) (651) (355) (724) - Payments & Fintech 577 796 (59) (52) (68) (60) - Ed
Slide 37: New consolidated segmental disclosure
New consolidated segmental disclosure Revenue Adjusted EBITDA Trading profit FY21 FY22 FY21 F22 FY21 FY22 Ecommerce 5 116 6 866 51 (251) (53) (380) - Classifieds 1 476 2 768 90 116 36 55 - Food Delivery 737 991 (58) (209) (63) (216) - Payments & Fintech 515 686 (46) (39) (55) (46) - Edtech - 84 (10)
Slide 38: Ecommerce revenue growth maintained above 50%
Ecommerce revenue growth maintained above 50% Ecommerce revenue (US$’m)1 Segmental revenue US$’m)1 • All our segments contributed to the increased revenue for FY22. FY21 9 825 FY22 • Ecosystem expansion in core Classifieds and executing the B2C strategy in OLX 93% 77% Autos drove a growth accelerati
Slide 39: Profitability of core driving central cash inflow to improve
Profitability of core driving central cash inflow to improve • The dividend received from Tencent Mature businesses continued to drive profitability… …and improved free cash inflow (US$’m)1,2 increased 25%, reflecting the continued cash generation at Tencent. 19% • Classifieds’ free cash inflow cont
Slide 40: FCF reflects the scaling of operations and settlement of SARs
FCF reflects the scaling of operations and settlement of SARs US$’m FY21 FY22 • The EBITDA loss (adjusted for non-cash Adjusted EBITDA (53) (411) items) decreased US$211m mainly due to iFood investing in quick commerce Non-cash items 151 303 and eMAG investing in Tazz and Freshful. Working capital (
Slide 41: Prosus company sources of cash and commitments
Prosus company sources of cash and commitments • Dividend received from Tencent US$’m FY21 FY22 Dividends to HoldCo (US#039;m) increased 25% YoY. FY23’s dividend of US$565m was received in June 2022, after year-end. 23% Cash remitted to/generated at Holdco level: • Classifieds’ profitability improved,
Slide 42: Summarised income statement
Summarised income statement • The operating loss improvement driven by US$’m FY21 FY22 lower SBC expenses partly offset by investment into new initiatives. Revenue1 28 756 35 619 • Net finance cost and share of equity- accounted results info available on p.42 & Less: Equity-accounted investments (23
Slide 43: Finance costs
Finance costs • Interest income on our cash and short- US$’m FY21 FY22 term investments balances decreased as short-term interest rates declined. Interest income 83 58 • Interest expense is elevated from the prior year given new bond issuances Loans and bank accounts 61 40 More info on Prosus’s bond
Slide 44: Share of equity-accounted results
Share of equity-accounted results • The increase of US$2.2bn (+30% YoY) in US$’m FY21 FY22 share of equity-accounted results was driven by: Tencent1 8 156 9 863 − Increased net profit from Tencent. Delivery Hero1 (766) 65 This profit included a large net gain on acquisitions and disposals. Our Skill
Slide 45: Contribution by associates and joint ventures
Contribution by associates and joint ventures IFRS Other Core HE • Equity-accounted results include, the FY22 (US$’m) results adjustments Contribution group’s share of the earnings of its associates and JV’s. Tencent1 9 863 (4 450) 5 413 • To the extent that information is Delivery Hero1 65 (474) (4
Slide 46: Core headline earnings reconciliation
Core headline earnings reconciliation • Headline earnings decreased due to: US$’m FY211 FY22 − Decrease in contribution to headline earnings from associates including lower fair value gains in the current year from Tencent Headline earnings 5 840 3 076 − Continued investment in growth adjacencies in
Slide 47: Core HE impacted by sale of Tencent and organic investment
Core HE impacted by sale of Tencent and organic investment Incremental core headline earnings drivers, YoY (US$’m)1,2 • Core headline earnings (which excludes once-off and non-operating items such as amortisation of intangible assets recognised in business combinations, etc.) is not defined under IF
Slide 48: Current assets and liabilities
Current assets and liabilities • Other receivables decreased YoY as Current assets (US$’m) FY21 FY22 Current liabilities (US$’m) FY21 FY22 Delivery Hero shares (US$1.3bn) were were reclassified to associates. These shares had been paid for but not yet Inventory 321 470 Current portion of long-term d
Slide 49: Debt detail
Drosus Debt detail
Slide 50: Strong balance sheet with healthy liquidity buffer to support IG rating
Strong balance sheet with healthy liquidity buffer to support IG rating We will manage our balance sheet to Investment Grade rating Unlocked liquidity Net debt1 US$2.1bn at 31 March 2022 Investment Grade BBB (S&P) / Baa3 (Moody’s) 9.3% LTV Based on gross debt2 13.6 Sold our 3% stake in JD.com 15.7 f
Slide 51: Prosus debt – US$ bonds
Prosus debt – US$ bonds Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond 2025 2027 2027 2030 2031 2032 2050 2051 2052 ISIN USN5946FAC16 USN5946FAD98 USN7163RAW36 USN7163RAA16 USN7163RAR41 USN7163RAX19 USN7163RAD54 USN7163RAQ67 USN7163RAY91 S
Slide 52: Prosus debt – EUR bonds
Prosus debt – EUR bonds Prosus Bond 2026 Prosus Bond 2028 Prosus Bond 2029 Prosus Bond 2030 Prosus Bond 2032 Prosus Bond 2033 Prosus Bond 2034 ISIN XS2430287529 XS2211183244 XS2360853332 XS2430287362 XS2211183756 XS2363203089 XS2430287875 SEDOL BPGKM02 BK7YNX8 BL53K66 BMH1RC0 BK7YNZ0 BL53KC2 BMH24N3
Slide 53: Appendix
Drosus Appendix
Slide 54: Prosus share capital
Prosus share capital Net total Economic Prosus (‘000) 31 March 2021 31 March 2022 24 June 2022 shares in issue3 interest4 Prosus N ordinary shares Shares in issue 1 624 652 2 073 644 2 003 818 Free float & treasury 444 402 893 394 823 568 Owned by Naspers 1 180 250 1 180 250 1 180 250 Prosus shares
Slide 55: Naspers share capital
Naspers share capital Net total Naspers (‘000) 31 March 2021 31 March 2022 24 June 2022 shares in issue2 Naspers N ordinary shares Shares in issue 435 511 435 511 435 511 Prosus shares held in treasury1 (15 271) (218 102) (218 102) Net shares in issue 420 240 217 409 217 409 217 409 Naspers A ordina
Slide 56: Group portfolio
Group portfolio Ecommerce Social & internet platforms Payments & Classifieds Food Delivery Edtech Etail Ventures 29% Fintech 99%1 94% 100% 100% 80% 23% 99% 63%2 100% 62% 43% 14% 40% 27% 74% 38% 14% 39% 33% 91% 12% 15% 13% 100% 42% 13% 10% 83% 10% 11% 13% 17%3 13% 17% 23% 19% 22% 11% 4%3 Organogram d
Slide 57: Glossary and financial definitions
Glossary and financial definitions AOV: Average order value ARPIU: Total revenue for OLX Core Classifieds monetisation countries, divided by the total number of internet users in those countries AUM: Assets under management Consolidated earnings: Results of subsidiaries only, companies which
Slide 58: Further information and investor relations contact
If you require any further information, please visit our website www.prosus.com or alternatively email Eoin Ryan (Head of Investor Relations) at InvestorRelations@prosus.com