Slide 1: Financial Results: Six months ended September 2020
Financial Results For the six months ended September 2020 1
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: Agenda
1. Business Update 2. Financial Update Agenda 3. Closing Remarks
Slide 4: Business Update
Business Update Bob van Dijk 4
Slide 5: Extraordinary period of change and challenge, but also of tremendous progress
Extraordinary period of change and challenge, but also of tremendous progress 1H FY21: Key Highlights • Quick response and adaption to Covid-19 environment • Strong & accelerated growth across all segments • Further investment to strengthen businesses & fund future growth • Benefit from accelerated
Slide 6: Accelerated growth and significant improvement on all financial metrics
Accelerated growth and significant improvement on all financial metrics 1H FY20 1H FY21 Group Revenue growth1 +20% +32% Ecommerce Revenue growth1 +28% +51% Trading Profit growth1 +7% +43% Cash flow improvement US$14m US$370m Core HE growth2 +10% +29% 1 Reported on an economic-interest basis, i.e. eq
Slide 7: The pandemic has accelerated the consumer adoption of online models
The pandemic has accelerated the consumer adoption of online models Rapid digital adoption impacting our 7 years in 1 month businesses Online share of retail sales1 Restaurants benefit from online Food Delivery Adoption of all forms of online Payments Strong user engagment enabled Classifieds recove
Slide 8: Classifieds: Q1 impacted by lockdown regulations, Q2 strong recovery
Classifieds: Q1 impacted by lockdown regulations, Q2 strong recovery User engagement impacted - measures provided to Lockdown restrictions resulted in the closure of support customers in our supply chain inspection centers 318m +500 YTD Monthly active users1 Inspection centers globally YoY growth da
Slide 9: Food Delivery: iFood's growth accelerated, Swiggy recovering
Food Delivery: iFood’s growth accelerated, Swiggy recovering Indian food delivery steadily Strong demand drawing in more supply in a virtuous circle recovering Number of restaurant partners (‘000) GMV - Feb’20 to Oct’20 120 100 258 200+ cities at 90% of their pre-Covid GMV levels, 70+ cities seeing
Slide 10: Payments & Fintech: GPO fuelled growth, India recovered sharply
Payments & Fintech: GPO fuelled growth, India recovered sharply PSP benefitting from LatAm and Europe immediately India recovered sharply businesses moving online benefitting from shift to online 53% 24% 1H FY21 YoY TPV growth1 1H FY21 YoY TPV growth1 34% 17% YoY growth in total number of transactio
Slide 11: Significant investment in Edtech continues and value grows
Significant investment in Edtech continues and value grows Edtech investments growing rapidly US10 trillion + Edtech market opportunity by 20301 67% YoY user growth3 70% US$1bn+ invested in a portfolio of YoY growth in paying subscribers3 7 companies across the globe2: 425% Vocational learning K-12
Slide 12: We continued to invest across our core verticals and our ventures portfolio
We continued to invest across our core verticals and our ventures portfolio M&A to advance our strategy and expand our Our approach to allocating capital ecosystem for continued long-term growth is our differentiator Acquisitions/ Investments After 30 Sep20 (US$’m) 1 Based on deep industry insights
Slide 13: We are investing in the group's strong internet portfolio
We are investing in the group’s strong internet portfolio Transaction Structure Rationale Increased financial flexibility 1 allows investment across asset 27.5% US$5bn 72.5% portfolio and stock free float cash US$1.4bn US$3.6bn cash cash A further step to crystalise value 2 for shareholders Repurcha
Slide 14: We are committed to creating value over the long term
We are committed to creating value over the long term Creating significant value for shareholders Prosus’ Ecommerce Portfolio External FOOD PAYMENTS CLASSIFIEDS ETAIL VENTURES UNLOCKING VALUE DELIVERY & FINTECH Ecommerce revenue growth1 51% US$16bn Value unlock at the time of listing Prosus in 2019
Slide 15: Financial Update
Financial Update Basil Sgourdos 15
Slide 16: 1H FY21 Financial Highlights: Strong performance despite challenges
1H FY21 Financial Highlights: Strong performance despite challenges Summary financials (US$’bn) Revenue1 Trading profit1 1 Strong and accelerated ecommerce revenue growth 28% (32%) 39% (43%) 2 Significantly improved profitability 9.9 12.7 1.9 2.7 1H FY20 1H FY21 1H FY20 1H FY21 3 Group’s diversified
Slide 17: Ecommerce revenue growth accelerated
Ecommerce revenue growth accelerated YoY Ecommerce revenue growth (%)1 Segmental revenue growth (%)1 141% 1H FY20 1H FY21 51% 69% 70% 38% 28% 29% 20% 13% -3% 1H FY20 1H FY21 Food Delivery Classifieds Payments & Fintech Etail 1 Results reported on an economic-interest basis, i.e. equity-accounted inv
Slide 18: Ecommerce trading margin improved meaningfully
Ecommerce trading margin improved meaningfully Ecommerce trading loss margin (%)1 Segmental trading (loss)/profit margin (%)1 1H FY20 1H FY21 6% 2% 2% -3% 4p.p 5p.p -15% -12% -19% 4p.p 10p.p -31% 61p.p -22% 92% 1H FY20 1H FY21 Food Delivery Classifieds Payments & Fintech Etail 1 Results reported on
Slide 19: Classifieds recovered strongly from the impacts of the pandemic
Classifieds recovered strongly from the impacts of the pandemic Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 Transactions Investment in Transactions • Q1 revenue declined as inspection centers were closed and we rolled out support measures for customers. 7% (-3%) • Q2 saw a strong recovery with t
Slide 20: Food Delivery doubled revenues and improved margin with scale
Food Delivery doubled revenues and improved margin with scale Revenue (US$’m)1 Trading loss (US$’m)1 • Rapid revenue growth for the period from iFood and Delivery Hero. Swiggy faced headwinds with strict lockdowns in India. • Trading losses improved by US$96m representing a 61p.p margin 99% (141%) i
Slide 21: Payments & Fintech accelerated revenue growth, while India recovers
Payments & Fintech accelerated revenue growth, while India recovers Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 New initatives Core Payments 27% (29%) 252 • Revenue growth driven by increased transactions as people shifted online and local regulations supported digital purchases. 199 34 (25%) (3
Slide 22: Improved profitability and generation of central cash flows
Improved profitability and generation of central cash flows Consolidated trading profit from profitable Dividends to HoldCo (US$m) ecommerce businesses (US$m)1 12% (20%) 19% 578 485 120 108 Classifieds 190 Tencent dividend 170 458 377 1H FY20 1H FY21 1H FY20 1H FY21 1 Numbers in brackets represent y
Slide 23: FCF reflects strong performance from operations
FCF reflects strong performance from operations Incremental FCF, YoY (US$’m)1 20 81 82 370 350 173 14 1H FY20 Cash from operations Working capital Tencent dividends Capex and Tax 1H FY21 (excluding WC) 1 FCF defined as EBITDA less adjustments for non-cash items, working capital, taxation, capital ex
Slide 24: Our financial flexibility continues to improve
Our financial flexibility continues to improve Strong liquid financial position Increased leverage at lower cost of debt while maintaining a low LTV 3 Year debt1 profile Net cash of US$4.3bn1 Holdco debt Avg interest rate LTV ratio 5.5% 4.7% 3.9% 5 667 2.8% 2.3% 2.3% 9 947 5 667 3 200 3 450 Cash Deb
Slide 25: Closing remarks
Closing remarks Bob van Dijk 25
Slide 26: Key takeaways and thoughts for the future
Key takeaways and thoughts for the future The fundamentals of our businesses remain strong and each business is well positioned to benefit from the 1 acceleration of secular growth trends driving the consumer internet space Investing for growth in Food Delivery, Classifieds transactions, Credit and
Slide 27: Appendix
Drosus Appendix
Slide 28: 1H FY21 Naspers Summary Financials
1H FY21 Naspers Summary Financials Summary financials (US$’bn)1 Revenue2 Trading profit2 1 Strong revenue growth and improved profitability from Prosus 27% (32%) 38% (42%) 13.0 2.6 2 Strong growth from Takealot with 8p.p margin improvement 10.2 1.9 1HFY20 1HFY21 1HFY20 1HFY21 3 Media24 print busines
Slide 29: Group portfolio
Group portfolio Local SA assets 73% 97% 85% Ecommerce Social & internet platforms 31% Classifieds Payments & Fintech Food delivery Etail Ventures 100%1 99% 92% 80% 19% 27% 100% 99% 61%2 42% 15% 39% 72% 21% 21% 38% 90% 40% 44% 91% 99% 11% 79% 16% 19% 12% 23% 21% 9% Organogram depicts effective percen
Slide 30: Glossary
Glossary 1P: First party M&A: Mergers and acquisitions EBITDA: Earnings before interest tax, depreciation and amortisation MCG: MultiChoice Group ESG: Environmental, Social and Governance p.p: Percentage points FCF: Free cash flow PSP: Payment service provider GMV: Gross merchandise value RCF: Revol
Slide 31: 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