54 slides from Prosus N.v. Class N's earnings presentation, 2021
Slide 1: Detailed Financials
Detailed Financials For the year ended 31 March 2021
Slide 2: Operations
Drosus Operations
Slide 3: Classifieds: Strong H2 performance, benefiting from user growth
Classifieds: Strong H2 performance, benefiting from user growth • OLX was disrupted by lockdown OLX Group traditional Classifieds: Average revenue/ A global classifieds restrictions during H1 but recovered internet user (ARPIU)1,2 monetisation countries (US$) leader and innovator quickly as the pand
Slide 4: Transactions: Sharp recovery in H2 post initial Covid-19 impact
Transactions: Sharp recovery in H2 post initial Covid-19 impact # Vehicles transacted (‘000)1: H2 • OLX Autos’ model provides a competitive -10% advantage to traditional autos classifieds 112 H1 and offline dealers. The data-driven 100 approach ensures more accurate car pricing, enhances consumer tr
Slide 5: Ecosystems solidify competitive position in mature markets
Ecosystems solidify competitive position in mature markets Avito: • Avito demonstrated resilience during the Europe worst phase of the pandemic in H1 and H1 H2 FY20 FY21 H1 H2 FY20 FY21 strong user base penetration with MAUs 19% 19% reaching 87m in Mar’21 (~70% of 24% 25% 25% 23% 25% Russia’s intern
Slide 6: Investing in the transactions model to grow market share
Investing in the transactions model to grow market share OLX Brazil: • Brazil continues to be affected by Covid- Brazil 19 with an extended impact on H1 H2 FY20 FY21 H1 H2 FY21 professional sellers’ activities on the 21% 17% 19% 24% platform and customer support 3% 5% measures. 4% 2% 15% 7% • FY21 w
Slide 7: Food Delivery: Enhancing the ecosystem with last-mile logistics
Food Delivery: Enhancing the ecosystem with last-mile logistics Operations in 69 high growth markets Orders (‘m)1 • High-frequency usage and the increasing need for convenience are driving strong 52% retention and engagement, proliferated in the stay-at-home environment. • Globally, food delivery is
Slide 8: Food Delivery: iFood delivers stellar growth in FY21
Food Delivery: iFood delivers stellar growth in FY21 • Lockdowns stimulated demand Orders (‘m)1 Restaurant partners (‘000) organically for food delivery in Brazil. While this allowed lower customer 100% 73% acquisition cost (CAC) during H1, CAC picked up slightly during H2 to widen the consumer grou
Slide 9: Food Delivery: Delivery Hero growth while Swiggy recovers
Food Delivery: Delivery Hero had impressive growth while Swiggy recovers from the pandemic Delivery Hero (DH): • DH reported strong organic growth in orders and GMV, driven by significant 1P expansion and higher order frequency Present in more than 50 markets globally A leader in India per user. • D
Slide 10: Payments & Fintech: Excellent growth across the board
Payments & Fintech: Excellent growth across the board • Ecommerce adoption accelerated 20 High growth markets Number of Transactions (‘bn)1,2 globally, driving the use of PayU’s 38% alternative payment methods. • India’s transactions1 and TPV grew 27% and 42% YoY respectively in FY21. -35% • TPV gro
Slide 11: Etail: A strong year provides a platform for further expansion
Etail: A strong year provides a platform for further expansion eMAG GMV (US$’m)1 • Leveraging existing brand strength, eMAG’s market-leading businesses in 61% (52%) Romania, Hungary and Bulgaria have adapted to the pandemic and continue to provide consumers with best-in-class convenience, selection
Slide 12: Edtech: Portfolio of leading companies well-positioned for growth
Edtech: Portfolio of leading companies is well-positioned for future growth as the sector increasingly shifts online • Education is an area of massive consumer spend (expected to reach US$10tr by 20303) that remains largely US$3bn+ invested1 in 9 companies Enterprise learning focus: untouched by tec
Slide 13: ESG
Drosus ESG
Slide 14: ESG driving sustainable models
ESG driving sustainable models Classifieds Food Delivery Carbon neutral Carbon neutral by 2025 by 2021 • OLX is championing the circular economy resulting in savings1 of: 20k small restaurants – Europe already in 2020 supported – 215 378 tonnes of CO2 – Materials: 5.5bn+ kilogram Use of 4m p
Slide 15: M&A
Drosus M&A
Slide 16: M&A focused on strengthening our core segments
M&A focused on strengthening our core segments • Prosus invested US$3.6bn in FY21 Investment to scale our core segments (FY20: US$1.3bn). Significant investments include: • Delivery Hero (US$2.6bn) • Movile (US$191m) • OfferUp (US$100m) US$3.6bn US$3.6bn • Grupo ZAP (US$89m) • EMPG (US$75m) • Wolt (
Slide 17: Financials
Drosus Financials
Slide 18: Summary financials
Summary financials Revenue (US$’bn)1,2 Trading profit (US$’bn) 1,2 34% (33%) 49% (44%) 28.8 5.6 21.5 3.8 FY20 FY21 FY20 FY21 Core headline earnings (US$’bn)2,3 Free cash flow (US$’m) 45% (39%) 126 4.9 (338) 3.4 FY20 FY21 FY20 FY21 1 Results reported on an economic-interest basis, i.e. equity-account
Slide 19: Ecommerce growth acceleration driven by Food Delivery, Etail and Payments
Ecommerce growth acceleration driven by Food Delivery, Etail and Payments • Ecommerce revenue growth accelerated Ecommerce revenue growth by core segments (%)1 H1 vs H21 21p.p. YoY to 54% driven by H1 and H2. H1 H2 • Ecommerce revenue totaled US$6.2bn FY20 for FY21, with all segments contributing 12
Slide 20: Classifieds maintained strong growth and regained momentum
Classifieds maintained strong growth and regained momentum OLX Group: Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 H1 vs H2 revenue growth (%)1 Classifieds ended the year with a solid H2 performance, growing revenues 36% Transactions H1 H2 YoY, demonstrating its resilience and Traditonal Classi
Slide 21: Food Delivery doubles revenue and significantly improves profitability
Food Delivery doubles revenue and significantly improves profitability • Strong revenue growth was driven by Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 H1 vs H2 revenue growth (%)1 iFood and Delivery Hero (DH). The loss margin improved to -24% with all three businesses contributing to the 59p.p
Slide 22: Core Payments profitable while we invest to sustain long-term growth
Core Payments profitable while we invest to sustain long-term growth • The Indian business recovered strongly Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 H1 vs H2 revenue growth (%)1 in H2 due to increasing diversification into high growth verticals, especially ecommerce and financial services,
Slide 23: Etail: eMAG's healthy revenue growth drove improved profitability
Etail: eMAG’s healthy revenue growth drove improved profitability • The business continues to benefit from Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 H1 vs H2 revenue growth (%)1 higher user adoption and frequency. • The pace of growth reduced from exceptionally high 70%+ levels in H1 65% (54%)
Slide 24: Ventures & Movile – a successful year
Ventures & Movile – a successful year • Prosus Ventures had a strong year, with Revenue (US$m)1 Trading loss (US$m)1,2 revenue growing 70% YoY (54% YoY)1. 7% (34%) • Edtech, the largest driver of Prosus Includes: Ventures, grew 69% YoY (56% YoY)1 • Prosus Ventures with all of our Edtech investments
Slide 25: Strong performance from Social & Internet platforms
Strong performance from Social & Internet platforms Tencent: • Tencent grew revenue 28% YoY for the Tencent revenue (RMB’m)1 Mail.ru revenue (RUB’m)2 year to December 2020 driven by: 28% 21% • Solid growth in smartphone gaming driven by expanded userbases of 482 064 107 427 established games and suc
Slide 26: Segmental detail
Segmental detail1 Revenue Adjusted EBITDA Trading profit FY20 FY21 FY20 FY21 FY20 FY21 Ecommerce 4 266 6 230 (660) (277) (782) (429) - Classifieds 1 281 1 599 82 67 34 9 - Food delivery 751 1 486 (596) (313) (624) (355) - Payments & Fintech 428 577 (60) (59) (67) (68) - Etail 1 363 2 250 8 102 (20)
Slide 27: Increase in value of businesses drives increase in SBC expense
Increase in value of businesses drives increase in SBC expense • The increase in the group’s SBC charge is driven by increased valuations across our Net Asset Value of Ecommerce (US$bn)1 businesses in our ecommerce portfolio. Our SAR2 schemes are settled in cash and the SAR liability is remeasured a
Slide 28: Profitable businesses contributed to cash inflows
Profitable businesses contributed to cash inflows Consolidated revenue from Consolidated trading profit from Sources of free cash inflow (US#039;m)2,3 • Improved Ecommerce profitability, profitable ecommerce businesses profitable ecommerce businesses driven by Etail, contributed to overall (US$’m)1,2 (
Slide 29: Development spend decrease driven by improved Food Delivery profitability
Development spend decrease driven by improved Food Delivery profitability Consolidated development spend (US$m)1 Economic interest development spend (US$m)1 • Consolidated development spend decreased 40% YoY as lower levels of investment were required in iFood and -30% (-30%) eMAG turned profitable.
Slide 30: FCF reflects Ecommerce profitability improvement
FCF reflects Ecommerce profitability improvement US$’m FY20 FY21 • The Group’s free cash flow improved to Adjusted EBITDA (324) (53) an inflow of US$126m driven by: Non-cash items 106 151 − Improved Food Delivery margins; − Improved Etail profitability; Working capital (including merchant cash, excl
Slide 31: Prosus company sources of cash and commitments
Prosus company sources of cash and commitments • Dividend extracts from Tencent US$’m FY20 FY21 Dividends to HoldCo (US$m) increased 21%. • Classifieds is profitable and paid a Cash remitted to/generated at Holdco level: dividend to the HoldCo of US$229m in 1% FY21, a reduction from FY20, mostly Ten
Slide 32: Significant financial flexibility to execute our value creating strategy
Significant financial flexibility to execute our value creating strategy Debt maturity profile (US$’bn) Debt: • US$1.2bn 10yr bond issued July 2015 (5.5% coupon). • US$1bn 10yr bond issued July 2017 (4.85% coupon). Bond • €500m 8yr bond issued August 2020 and Undrawn Group RCF Bond US$1.5bn €350m dr
Slide 33: Summarised income statement
Summarised income statement • Detail on net finance cost and share of US$m FY202 FY21 equity-accounted results can be found on page 33 & 34. Revenue1 21 455 28 756 • Net gains on acquisitions and disposals in Less: Equity-accounted investments (18 125) (23 640) FY21 includes gains of US$114m on the
Slide 34: Finance costs
Finance costs • Interest received decreased due to lower US$’m FY201 FY21 cash and short-term cash investment balances as the Group deployed capital to grow its core segments. Additionally, Interest income 201 83 average interest rates declined YoY. Loans and bank accounts 198 61 • Prosus raised €1.
Slide 35: Share of equity-accounted results
Share of equity-accounted results • The increase of US$3.2bn (+81% YoY) in US$’m FY20 FY21 share of equity-accounted results relates mainly to: Tencent1 4 178 8 156 − Increased Tencent profits; − Reduced losses from Swiggy; and Mail.ru1 48 (54) − Reduced MakeMyTrip losses as the Delivery Hero1 76 (7
Slide 36: Core headline earnings drivers
Core headline earnings drivers Incremental core headline earnings drivers, YoY (US$’m)1 • Core headline earnings (which excludes once-off and non-operating items such 45% (39%) as amortisation of intangible assets recognised in business combinations, 257 (166) (87) (20) etc.), is not defined under I
Slide 37: Core headline earnings reconciliation
Core headline earnings reconciliation • Remeasurement of cash-settled share- based incentive expenses include the fair US$’m FY201 FY21 value remeasurement of the Group’s cash-settled SARs schemes. From 1 April 2020, the Group settles all SARs directly Headline earnings from continuing operations 2
Slide 38: Contribution by associates and joint ventures
Contribution by associates and joint ventures Company PPA IFRS Other Core HE • Equity-accounted results include the FY21 (US$’m) Group’s share of the earnings of its results adjustments results adjustments Contribution associates and JV’s. Tencent1 8 156 - 8 156 (2 435) 5 721 • In arriving at core h
Slide 39: Tencent's contribution to core headline earnings
Tencent’s contribution to core headline earnings FY20 FY21 Tencent: Dec’19 Prosus’s share Tencent: Dec’20 Prosus’s share (RMB’m)1 (US$’m) (RMB’m)1 (US$’m) Tencent profit attributable to equity holders 93 310 4 162 159 847 7 356 Adjustments to get to Prosus’s core headline earnings: 1 041 12 (37 105)
Slide 40: Current assets and liabilities
Current assets and liabilities • Other investments, receivables and loans increased US$1 363m related mostly to Current assets (US$’m) FY20 FY21 Current liabilities (US$’m) FY20 FY21 the investment in Delivery Hero (DH). At 31 March 2021, all the risks and rewards related to 4% of Delivery Hero had
Slide 41: Share exchange transaction
Drosus Share exchange transaction
Slide 42: Proposed transaction offers a simple end state to a complex problem
Proposed transaction offers a simple end state to a complex problem Impact on the Group Prosus’s portfolio of unique fast growing business and investments Public Private And many others Prosus free float effective economic 1 interest more than doubles $268bn NAV Naspers weighting on the SWIX 2 expec
Slide 43: Accounting implications of the proposed transaction
Accounting implications of the proposed transaction Implications for Prosus Implications for Naspers • The transaction is considered to be a capital • Continue to consolidate Prosus as it retains restructure control • Prosus will issue share capital, recognised as • Shares owned by Prosus will be co
Slide 44: Key dates
Key dates 12 May 2021 27 May 2021 9 July 2021 12 July 2021 13 August 2021 16 August 2021 EGM notice and Prospectus is Voluntary Announcement circular sent to Prosus EGM issued and the Exchange Offer Settlement of the shareholders exchange offer expected to close Exchange Offer opens 43
Slide 45: Appendix
Drosus Appendix
Slide 46: Share capital
Share capital 31 March 31 March Post share 31 March 31 March Post share Prosus (‘000) Naspers (‘000) 2020 2021 exchange4 2020 2021 exchange4 Prosus N ordinary shares Naspers N ordinary shares Shares in issue 1 624 652 1 624 652 2 073 918 Shares in issue 435 511 435 511 435 511 Prosus shares held in
Slide 47: Group portfolio
Group portfolio Ecommerce Social & internet platforms Payments & Classifieds Food delivery Etail EdTech Ventures 29% FinTech 100%1 100% 93% 80% 14% 21% 27% 100% 100% 62%2 42% 21% 16% 39% 72% 25% 40% 14% 40% 91% 40% 11% 17% 91% 100% 14% 9% 16% 79% 13% 38% 10% 19% 2%3 100% 16% 24% 62% 22% 4%3 Organogr
Slide 48: Glossary
Glossary ARPIU: Total revenue for OLX Core Classifieds monetisation countries, divided by the total number of internet users in those countries M&A: Mergers and acquisitions BNPL: Buy now, pay later MAU: Monthly active users CAC: Customer acquisition cost OCI: Other comprehensive income
Slide 49: Disclaimer
Drosus Disclaimer
Slide 50: Important information – Disclaimers
Important information – Disclaimers Forward-looking statements This presentation contains statements about Prosus and/or Naspers that are, or may be, forward-looking statements. All statements (other than statements of historical fact) are, or may be deemed to be, forward-looking statements, includi
Slide 51: Important information - Disclaimer (cont.)
Important information - Disclaimer (cont.) Shareholders should note that the Prosus Board reserves the right, in its discretion, to decide not to proceed with the Proposed Transaction and, as such, the Proposed Transaction may or may not proceed. This presentation is for information purposes only an
Slide 52: Important information – Disclaimer (cont.)
Important information – Disclaimer (cont.) In member states of the European Economic Area (“EEA”) (each, a “Relevant Member State”) no action has been undertaken or will be undertaken to make an offer to the public of Securities requiring publication of a prospectus in any Relevant Member State. As
Slide 53: Important information – Disclaimer (cont.)
Important information – Disclaimer (cont.) Investors are advised to read the Transaction Documentation, which will contain the terms and conditions of the Proposed Transaction, with care and in full. Any decision to approve the resolutions required to implement the Proposed Transaction or analysis o
Slide 54: If you require any further information, please visit our website
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