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Slide 2: Important information
2 Important information This report 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”, “endeavor” and similar expressions are intended to identi
Slide 3: Agenda
3 Agenda Business Update 04 Financials 19 Closing Remarks 29
Slide 4: Business Update
BUSINESS UPDATE NASPERS
Slide 5: We partner with local entrepreneurs
5 Naspers has followed a consistent and repeatable strategy Build businesses with ‘platform’ potential We partner Address with local big societal needs entrepreneurs In to… high-growth markets Where we can build sustainable leadership positions
Slide 6: 2019 was another year of great progress for Naspers
6 2019 was another year of great progress for Naspers 1 Strong operational and financial performance across our core segments 2 Focused investments to position Naspers for sustained long-term growth 3 Strategic improvements to Naspers’ structure to maximise value for shareholders now and in the futu
Slide 7: FY19 highlights
7 FY19 highlights Unbundled MultiChoice Group to shareholders in February 2019, unlocking ~US$4bn in value Announced intention to list Prosus, formerly know as Newco1, on Euronext Amsterdam, creating Strategic moves the largest listed consumer internet company in Europe Sold Flipkart to Walmart for
Slide 8: In 2019, Naspers invested US$3bn to strengthen its leadership positions
8 In 2019, Naspers invested US$3bn to strengthen its leadership positions US$3bn Classifieds1 Payments & Fintech Food Delivery2 Ventures US$1.8bn US$0.1bn US$0.8bn US$0.4bn 1 The group committed US$500m to letgo. US$150m of funding has been transferred and US$189m (included in the figure above) was
Slide 9: Classifieds: Investing to build deeper consumer relationships in core markets
9 Classifieds: Investing to build deeper consumer relationships in core markets Smart M&A to build a Leading in global classifieds customer-centric ecosystem Vertical and transactional models Post year end strengthening of our core …
Slide 10: Classifieds: Core markets at scale and growing quickly
10 Classifieds: Core markets at scale and growing quickly Continued momentum in listers Increased monetisation per user Focus on core markets Average monthly paying listers1 (m) OLX Group: average revenue/internet user # paying listers YoY growth (ARPIU)2 : monetisation countries (US$) 33% 29% +21%
Slide 11: Classifieds: Leveraging strong core to build broader ecosystems
11 Classifieds: Leveraging strong core to build broader ecosystems Building a holistic ecosystem Customer-centric proposition Deepen Category Core value chain extension • Sell it for me Convenient • Instant cash • Deliveries Financing Buyers Sellers • Fraud detection Jobs Safety and Trust • Payments
Slide 12: Payments & Fintech: Building the #1 Payments company in growth markets
12 Payments & Fintech: Building the #1 Payments company in growth markets Local presence + accepting all forms of digital payments Leveraging scaled platform in large attracts large multinational players addressable market Global footprint – operations in 18 countries 18 countries with local presenc
Slide 13: Payments & Fintech: Doubling down on India and expanding beyond Payments
13 Payments & Fintech: Doubling down on India and expanding beyond Payments Strong growth in core India represents > 50% of transactions Expanding beyond Payments PSP business processed and is growing rapidly Average daily transactions (m)1 Average daily transactions in India (m)1 44% 61% 2.9 2.0 PS
Slide 14: Food Delivery: Leader in markets with huge potential being disrupted by technology
14 Food Delivery: Leader in markets with huge potential being disrupted by technology Global food services market 2022: +4% Our footprint covers over 60% of the World's population US$10.4tr (10% of global GDP) CAGR3 #1 position in Grocery retail: Consumer food 36 markets1 services: US$6.8tr US$3.6tr
Slide 15: Food Delivery: Biggest opportunity lies in developing markets
15 Food Delivery: Biggest opportunity lies in developing markets US UK BR IN Unit economics very attractive in emerging markets AOV / Country minimum wage (Illustration) Population 328m 66m 211m 1,321m 6.00 5.00 ‘19 -22 Foodservice 3% 4% 5% 6% Spend CAGR %1 4.00 Average 3.00 order value US$10 US$16
Slide 16: Food Delivery: Leading and profitable at the core and investing to scale the market
16 Food Delivery: Leading and profitable at the core and investing to scale the market iFood was profitable before deciding to Swiggy proved it could be profitable, but invest to expand the market and go Growing the market1 deeper into 1P was subscale Adding cities and restaurants Swiggy was overall
Slide 17: Food Delivery: Investments, while early, showing returns and future potential
17 Food Delivery: Investments, while early, showing returns and future potential Clear market leader in Brazil Market leader in India Market leader in 33 of 411 countries 66k restaurant partners 130 cities Covering 1.2bn people In 500 cities in every state in 85k restaurant partners +290k restaurant
Slide 18: Creating the largest listed consumer internet company in Europe
18 Creating the largest listed consumer internet company in Europe Key benefits 1. Reduces Naspers’ overweight position on the JSE in South Africa 100% Listed Up to 27% free float 2. Prosus becomes Europe’s largest on JSE on Euronext Amsterdam listed consumer internet company 3. Significantly increa
Slide 19: Financials
FINANCIALS NASPERS
Slide 20: FY19 Financial Highlights
20 FY19 Financial Highlights Summary financials – for continuing operations1 Revenue (US$bn)2 Trading profit (US$bn)2 1 Ecommerce profit trajectory continues momentum 16% (29%) 10% (22%) 2 Classifieds now profitable, including letgo 16.4 19.0 3.0 3.3 3 Core PSP business now profitable at an operatio
Slide 21: Strong revenue growth and improving profitability continues
21 Strong revenue growth and improving profitability continues Revenue and trading profit growth by core segments (%)1 YoY change in ecommerce trading profit/(loss) margins (%)1 Revenue TP Margin FY18 Trading profit/(loss) 10% TP Margin FY19 18% 67% 0% >100% 57% -10% 5% 37% -20% 7% 26% 28% -30% 13%
Slide 22: Classifieds momentum and scale driving profitability
22 Classifieds momentum and scale driving profitability Revenue (US$m)1 Trading (loss)/profit (US$m)1 39% (37%) Clear progression of profit generation, while investing in 875 earlier stage markets, building a consumer-centric ecosystem, and developing a global technology infrastructure 628 426 TP Ma
Slide 23: Payments & Fintech: Core business profits reinvested in Credit and Fintech
23 Payments & Fintech: Core business profits reinvested in Credit and Fintech Revenue (US$m)1 Trading loss (US$m)1 Core PSP 22% (28%) 360 Operational efficiencies and increasing scale drove core to 294 profitability enabling reinvestment to broaden the fintech ecosystem 186 TP Margin -37% TP Margin
Slide 24: Food Delivery: Strong topline growth, strategic investment increasing
24 Food Delivery: Strong topline growth, strategic investment increasing Revenue (US$m)1 Trading (loss)/profit (US$m)1 127% (57%) Increased investment required to realise the full potential of the sizeable and lucrative food-delivery opportunity. Our food delivery businesses lead in innovation withi
Slide 25: Profitable businesses growing fast and contributed significantly to central cash flows
25 Profitable businesses growing fast and contributed significantly to central cash flows Consolidated trading profit from profitable ecommerce businesses Sources of free cash inflow excluding VE (US$m)2 (US$m)1 17% (44%) 22% 673 36 550 31 294 406 269 347 Other Payments 342 Classifieds 247 Tencent d
Slide 26: 60% improvement in FCF
26 60% improvement in FCF Incremental FCF, YoY (US$m)1 135% 184 304 (120) (46) 97 (298) 71 +US$178m, 60% 56 FY18 continuing Cash from Working capital Investment Capex and leases FY19 continuing FY19 discontinued FY19 total operations operations and tax paid income operations operations 2 operations
Slide 27: Strong balance sheet, smart investments and healthy returns from exits
27 Strong balance sheet, smart investments and healthy returns from exits FY19 acquisitions/investments1 Cash position Significant exits Net Cash of US$6.3bn US$2.2bn 29% IRR 3 247 US$3bn M&A announced after year end3 9 575 Cash2 Debt FY19 1 The group committed US$500m to letgo. US$150m of funding h
Slide 28: Core headline earnings trajectory over time
28 Core headline earnings trajectory over time Naspers core headline earnings (US$m) Tencent contribution to core (US$m) 3 year CAGR +27% 3 year CAGR +44% 9% 26% 3 587 3 288 3 000 2 388 2 237 1 454 FY17 1 FY18 FY19 FY17 FY18 FY19 1 FY17 not restated for discontinued operations.
Slide 29: Closing Remarks
CLOSING REMARKS NASPERS
Slide 30: Thoughts for the future…
30 Thoughts for the future… 1 Drive further scale and profitability in Classifieds, Payments & Fintech and B2C 2 Increase investment in food delivery to grow the market and our position within it 3 Invest wisely across our focus areas to ensure sustained long-term growth 4 Invest further in technolo
Slide 31: Appendix
APPENDIX NASPERS
Slide 32: Group portfolio
32 Group portfolio Global platform operator International internet assets Local SA assets Social & 96% internet Classifieds B2C Payments & Naspers Ventures platforms 85% Fintech 100%1 80% Food Ventures 31% 99% 100% 43%3 81% 25% 28% 23% 100% 54%4 12% 21% 80%2 22% 21% 19% 36% 39% 34% 99% 12% 23% 16% 1
Slide 33: Glossary of terms
33 Glossary of terms — AI: Artificial intelligence — M&A: Mergers and acquisitions — AOV: Average order value — MCG: MultiChoice Group — ARPIU: Average rate per internet user — ML: Machine learning — B2C: Business to Consumer — PSP: Payment service provider — CAGR: Cumulative average growth rate — S
Slide 34: Contact us
34 Contact us Eoin Ryan (Head of Investor Relations) InvestorRelations@naspers.com www.naspers.com +1-347-210-4305