Slide 1: Earnings Update
Earnings Update For the six months ended 30 September 2024
Slide 2: Forward looking statements
Forward looking statements 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
Slide 3: Innovation is in our DNA
Innovation is in our DNA ECOMMERCE IN GROWTH MARKETS SOCIAL NETWORKS MOBILE NETWORKS PAY TV PRINT AND WE ARE JUST STARTING >>> 3 Earnings Update
Slide 4: AI First World
We transform the lives of 2 Billion people in growth markets. Our big opportunity is to unlock an AI FIRST WORLD to our customers.
Slide 5: We are on a journey to create the next $100B of value
We are on a journey to create the next $100B of value INVESTING IN THE NEXT WAVE Invest in new opportunities, with a focus RETURNING VALUE on ecosystem & AI Continuing our open- ended buyback program TENCENT Valuable asset with potential for value appreciation INDIA Highlighting value with 5 potenti
Slide 6: We are building a strong ecosystem
We are building a strong ecosystem … Marketplaces Marketplace & Fintech mutually reinforcing each other Fintech Prosus Expertise & Investment in AI Re-imagine Ecommerce with AI: Better Products; Better Companies 6 Earnings Update
Slide 7: Our agenda
Our agenda 1 2 3 UNLOCK DISCIPLINE INVEST TO BUILD THE AN AI FIRST & RESULTS FUTURE OF OUR WORLD ECOSYSTEM 7 Earnings Update
Slide 8: We are creating the future inside Prosus
We are creating the future inside Prosus … Number of Queries (‘000) 590 40 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 26 PORTFOLIO 23K 12K UNIQUE USERS MONTHLY ACTIVE 4M QUESTIONS 47min ~15% REPORTED SAVED REPORTED PRODUCTIVITY COMPANIES ACROSS PROSUS USERS ANSWERED TIME PER DAY INCREASE 8 Ear
Slide 9: … For our customers & companies
… For our customers & companies Improved Cheaper Deep Fraud Logistics Marketing Customer Personalisation Prevention Optimisation Campaigns Support 30% 97% 40% REDUCTION IN CUSTOMER CREDIT CARE REDUCTION IN CUSTOMER 16% 17% REDUCTION IN INCREASE IN REACQUISITION ACCEPTANCE SUPORT COST + 5PP INCREASE
Slide 10: We are just starting to leverage AI
We are just starting to leverage AI For customers Experiential New interfaces Hyperpersonal Everywhere Prosus Large Commerce Model TRAIN AGENTS MODEL AI-READY DATA 1 trillion data points for model training For companies Improved Cheaper Marketing Fraud Customer Logistics Deep Prevention Optimisation
Slide 11: Discipline & Results
2 ° DISCIPLINE & RESULTS”. =
Slide 12: Strong peer-beating revenue growth
Strong peer-beating revenue growth … Accelerated revenue growth Quicker than peers +2X Revenue (US$m) & Revenue Growth (%)2 Peers¹ Prosus Ecommerce 21% 26% 25% 28% 40% 25% 23% 13% 17% 16% 16% 20% 20% 19% 13% 25% 0% 17% -20% 15% 1 644 1 451 1 512 10% 10% 1 314 1 372 -40% 9% 1 193 1 258 10% 1 147 1 02
Slide 13: … with continued profit improvement
… with continued profit improvement Significantly improved Ecommerce profitability… and more 400M to come Ecommerce Quarterly aEBIT (US$m) 102 $ 65 79 Consolidated Ecommerce aEBIT target for FY25 4 9 (40) (64) >5x aEBIT (93) improvement (86) YoY in H1 FY25 (170) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 F
Slide 14: iFood continues to grow profitably
iFood continues to grow profitably … iFood reaches >100m orders Strong growth with improved profitability Revenue (BRLm) & aEBIT margin (%)3 103 20% 15% 1900 76 65 67 10% 1700 301 45 267 0% 20 1500 259 13 226 1 3 6 -10% 1300 210 223 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -18% 231 245 1100
Slide 15: … As it expands its ecosystem
… As it expands its ecosystem … iFood ecosystem +360k drivers FOOD QUICK FINTECH DELIVERY COMMERCE Present in +380k merchants +1.500 cities in all corners of Brazil ~55M consumers iFood is breaking new ground by integrating its technology to the physical spaces of restaurants with iFood Salão (self-
Slide 16: Constant innovation drives growth
Constant innovation drives growth iFood brings financial solutions with iFood Pago ”The Bank of Restaurants” iFood created a “unique” credit engine (high approval rate, with low delinquency rate and its already profitable) AUM (BRL’m) 686 615 627 649 539 573 588 606 529 479 500 396 409 430 433 452 3
Slide 17: OLX continues to grow & expand margin
OLX continues to grow & expand margin Revenue (US$m) & 20% aEBIT Margin (%)1 1H FY25 Revenue growth1 37% 220 200 8 Loved Brands >90% brand 180 160 19% awareness in all brands 140 120 191 198 100 162 169 170 156 80 122 131 116 116 60 9 40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY23 FY23 FY23 FY23 FY24 FY24 FY
Slide 18: With renewed focus on motors & real estate
With renewed focus on motors & real estate Motors & Real estate are the fastest growing categories with opportunity for margin expansion 27% 21% Motors1 H1 FY25 YoY revenue growth Real Estate1 H1 FY25 YoY revenue growth 48% 36% Margin Margin 25% (%) (%) 37% 31% 40% 150 Revenue Revenue (US$’m) (US$’m
Slide 19: PayU India: At an inflection point post set-backs
PayU India: At an inflection point post set-backs 28% -9% H125 YoY revenue growth1 H125 aEBIT margin PayU India revenue (US$) and revenue growth (%)1 170 159 149 137 138 127 127 127 119 99 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24 FY25 FY25 FY25 FY25 1 PayU India in
Slide 20: On the road to maximising profitability
On the road to maximising profitability Revenue (US$’m) aEBIT margin (%) 1% (0%) (0%) (1%) 756 (2%) (2%) 638 554 577 520 481 (3%) 431 412 447 449 (4%)(4%) (4%) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY23 FY23 FY23 FY23 FY24 FY24 FY24 FY24 FY25 FY25 FY23 FY23 FY23 FY23 FY24
Slide 21: Our Indian investments lead the way
We are highlighting the value of our assets: Our Indian investments lead the way In the last 6 months Potential IPO candidates Future Potential … in the next 18 months $11.3B Valuation1 …more to come …more to come 1 Valuation of the company at IPO. Following the IPO Prosus holds a ~25% stake in Swig
Slide 22: Actively managing our portfolio: Simplification & Trade-offs
Actively managing our portfolio: Simplification & Trade-offs Disposals simplify Trimmed our Divestments that reflect the portfolio stake at IPO1 new focus on making tradeoffs PayU to focus on its rapidly growing Indian payments and credit business 1.5B 500M eMAG to improve its core operations in eta
Slide 23: We are buying back more shares as a % of market cap than any tech company
We are buying back more shares as a % of market cap than any tech company globally1 Buyback impact to date Illustrative NAV per share2 $36bn 767m TOTAL ACCRETION +5% +8% +11% Value Prosus & Naspers created3 shares acquired4 58 61 63 64 25% 10% NAV of Prosus free-float Prior to FY23 FY24 FY25 buyback
Slide 24: Invest to build the future of our ecosystem
3 INVEST TO BUILD THE FUTURE OF OUR ECOSYSTEM
Slide 25: We are building a strong ecosystem
We are building a strong ecosystem … Marketplaces Marketplace & Fintech mutually reinforcing each other Fintech Prosus Expertise & Investment in AI Re-imagine with (Gen)AI: Better Products; Better Companies 25 Earnings Update
Slide 26: … while investing to leverage our customers, technology & expertise
… while investing to leverage our customers, technology & expertise Key Regions India Brazil Europe MENA Marketplaces Fintech Re-imagine with (Gen)AI Since the start of FY25, we have invested ~$300m to enhance our ecosystems 26 Earnings Update
Slide 27: … & investment in (Gen)AI: Better Products, Better Companies
… & investment in (Gen)AI: Better Products, Better Companies For Users For Companies 27 Earnings Update
Slide 28: We continue to scale our social impact
We continue to scale our social impact Unlocking AI-first world Collaborating towards Investing in sustainable with future skills program 50% zero emission businesses deliveries by 2030 Customers & community Ecosystem 28 Earnings Update
Slide 29: H1 FY25 Financial Highlights
H1 FY25 Financial Highlights Ecommerce revenue growth accelerated and grew more than 2x faster than its peer group Delivered positive consolidated group aEBIT, driven by a 5x YoY improvement in Ecommerce aEBIT 88% Core HEPS growth driven by Ecommerce and Tencent profit and enhanced by share buyback
Slide 30: Revenue growth accelerated across all of Ecommerce
Revenue growth accelerated across all of Ecommerce Our intent is to deliver revenue of $6.2bn (maintaining organic growth above 20%) for FY25 H1 FY25 consolidated revenue growth against peer set (%)1 45% Peers² Prosus +2x growth rate of peer growth 30% 26% 20% 19% 20% 17% 17% 12% 9% 8% (3%) Ecommerc
Slide 31: … With profitability improving and more to come
… With profitability improving and more to come… Our ambition is for $400m in consolidated Ecommerce profitability for FY25 5x aEBIT improvement Consolidated Ecommerce aEBIT (US$’m)1 from FY24 181 74 (47) (36) (11) (149) (157) (221) (256) aEBIT margin of 6% for H1 FY25 H1 FY21 H2 FY21 H1 FY22 H2 FY2
Slide 32: Free cash flow grows 74%
Free cash flow grows 74% Free cash flow reflects improved profitability across our portfolio and increased dividends from Tencent Incremental FCF from continuing operations, YoY (US$’m)1 $386m improvement YoY (53) 242 (22) 219 911 525 H1 FY24 Cash from operations Capex Tencent & other dividends Tax
Slide 33: Strong & liquid balance sheet
Strong & liquid balance sheet We remain committed to an Investment Grade rating Increasing dividends to HoldCo Net cash1 of US$1.6bn (US$’m) at 30 September 2024 ($’bn) 31% Investment Grade YoY BBB (S&P) / Baa2 (Moody’s) 1 100 9.2% LTV 99 Based on gross debt2 840 82 3.8X 17.0 Interest cover3 Classif
Slide 34: We are on a journey to create the next $100B of value
We are on a journey to create the next $100B of value INVESTING IN THE NEXT WAVE INTEND TO DELIVER Invest in new HIGH GROWTH, STRONG opportunities, with a focus RETURNING VALUE on ecosystem & AI PROFITABITY & HIGHLIGHT VALUE Continuing our open- ended buyback program TENCENT Valuable asset with pote
Slide 35: Appendix
01 Portfolio Management & Capital Allocation 02 H1 FY25 Group Consolidated Results APPENDIX 03 Debt metrics 04 Results of Associates and JV’s 05 Group Portfolio & Glossary
Slide 36: Inflection in the IRR, but more improvement needed
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Inflection in the IRR, but more improvement needed iFood 28 NAV (US$’bn) and IRR (%)1 Food Swiggy 21 of Ecommerce portfolio Delivery Hero H
Slide 37: Our ambition is to invest and increase capital returns
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Our ambition is to invest and increase capital returns… INVESTMENT TO We leverage our ecosystem and LEVERAGE OUR invest to generate unique
Slide 38: … recent years have been weighted to capital returns
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results … recent years have been weighted to capital returns Open-ended buyback continues to drive higher capital returns Capital allocation (US$’b
Slide 39: … which has led to the largest global tech buyback
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results … which has led to the largest global tech buyback Capital return via open-ended buyback the largest in tech globally1 relative to market c
Slide 40: H1 FY25 Financial Highlights
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results H1 FY25 Financial Highlights Ecommerce revenue growth accelerated Financial Summary and grew more than 2x faster than peer group H1 FY24
Slide 41: Driving peer-leading growth with improving margin
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Driving peer-leading growth with improving margin Accelerated Revenue Growth First positive Group aEBIT Improved Free Cash Flow Consolidate
Slide 42: Driven by strong operational performance
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Driven by strong operational performance Revenue Growth1 H1 FY25 YoY +30%2 +20%3 +45% +19% +20% 33% 27% 4% 14% (2%) (3%) (1%) (15%) (4%) (9
Slide 43: … driven by improvement in aEBIT in all segments
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results … driven by improvement in aEBIT in all segments Scaling revenue and cost efficiency driving improved aEBIT across all segments Consolidate
Slide 44: iFood accelerated overall growth and improved margins
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results iFood accelerated overall growth and improved margins Consolidated Food Delivery Strong growth with margin improvement 30% iFood Brazil 30%
Slide 45: OLX grew strongly with margins surpassing 30%
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results OLX grew strongly with margins surpassing 30% Consolidated Classifieds Revenue from aEBIT from continuing continuing operations (US$’m) 20%
Slide 46: PayU accelerated growth and improved overall profitability
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results PayU accelerated growth and improved overall profitability Consolidated Payments & Fintech Strong growth across PayU, with new initiatives
Slide 47: eMAG growth acceleration and profitability improvement
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results eMAG growth acceleration and profitability improvement Consolidated Etail Romania accelerating on the path of profitable growth (US$’m) 19%
Slide 48: Edtech further improved profitability with resilient growth
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Edtech further improved profitability with resilient growth Stack Overflow accelerated growth GoodHabitz grew revenue and continued to redu
Slide 49: Profitable growth throughout portfolio drives strong core HE
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Profitable growth throughout portfolio drives strong core HE Growth in core HE driven by Tencent, consolidated Ecommerce and positive net i
Slide 50: Group corporate cost reconciliation
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Group corporate cost reconciliation Corporate cost aligned to new organisational structure Corporate cost reconciliation, aEBIT level, YoY
Slide 51: Group Consolidated Results
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Group Consolidated Results Consolidated Segmental Results from continuing operations Revenue Adjusted EBITDA1 Adjusted EBIT1 YoY % H1 FY25
Slide 52: Guidance FY25
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Guidance FY25 Ecommerce Revenue US$6.2bn FY25 >20% YoY1 Ecommerce Adjusted EBIT US$400m FY25 6.5% margin 1 Growth in local currency excludi
Slide 53: Strong debt metrics with long-dated bond maturities
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Strong debt metrics with long-dated bond maturities Debt metrics Bond maturity profile (US$’bn) US$’m LTM Sep 23 LTM Sep 24 2 - 5 years 6 -
Slide 54: We have defined guidelines that inform our decisions on our capital structure
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results We have defined guidelines that inform our decisions on our capital structure Investment Grade Rating While our balance sheet allows signif
Slide 55: Tencent fundamental strength enhanced
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Tencent fundamental strength enhanced Platform + content strategy, and AI drives 16% gross profit and 19% operating profit growth1 Tencent
Slide 56: Share of equity accounted results by associates and JV's
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Share of equity accounted results by associates and JV’s Improved profitability across our portfolio of associates and JVs Associates share
Slide 57: Contribution to core HE by associates and JV's
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Contribution to core HE by associates and JV’s Growth in contribution to core HE by associates and JV’s driven by Tencent Associates’ contr
Slide 58: Group portfolio companies
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Group portfolio companies Local SA assets 43% 100% 100% Ecommerce Social & internet platforms Payments Food Delivery Classifieds Etail Edte
Slide 59: Glossary
1. Portfolio Management & 2. H1 FY25 Group 3. Debt metrics 4. Results of Associates & JV’s 5. Group Portfolio & Glossary Capital Allocation Consolidated Results Glossary Consolidated Results | Results of subsidiaries only, companies which the Group controls. Free cash flow | Earnings before interest
Slide 60: For further information
For further information Visit our website | www.prosus.com or www.naspers.com Email | InvestorRelations@prosus.com