Naspers Limited Class N · JSE:NPN
Naspers Limited Class N — Investor Presentation (April 2022)
16 slides from Naspers Limited Class N's investor presentation, Apr 26, 2022
Slide 1: Fintech – Credit
Fintech – Credit 26 April 2022
Slide 2: Disclaimer
Disclaimer This presentation 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 uncertaint
Slide 3: Key trends shaping Digital Payments and Fintech
Key trends shaping Digital Payments and Fintech Digital payments driven by scale Consolidation is increasing Innovation solving for credit & affordability Unified Payments Interface (UPI) transactions in India (M) Acquirer Deal size Acquired ~50% of all retail payments More payments transactions CAG
Slide 4: PayU connects consumers, merchants & banks across our markets
PayU connects consumers, merchants & banks across our markets India GPO 1 2 3 4 Merchants Consumers Banks GPO Payments Integrated payments Digital Banking and Offering payment Strengthen in core markets; platform for merchants Credit for the Indian infrastructure for Financial explore adjacencies, B
Slide 5: Rapidly growing business with strong economics
Rapidly growing business with strong economics Transaction payments volume ($B) Revenue ($M) Trading profit ($M) GPO Core PSP Core PSP India Payments New initiatives New initiatives and central costs 4.5x 4.1x (4.6x) 55 577 78 15 28 -45 -83 499 -14 12 27 140 -59 -68 9 FY16 FY21 139 4 Core PSP Margin
Slide 6: India is our biggest opportunity for credit
India is our biggest opportunity for credit Low credit penetration in India… …presents a huge opportunity as the alternative lending scales Buy Now Pay Later Credit based online Consumer internet ($B) payments ($B) market ($B) 300+ Population 330M 1.38B 70-80 3.5x Household debt 80% 37% (% of GDP) 4
Slide 7: Our core business, a springboard into credit & digital services
Our core business, a springboard into credit & digital services Access to data Credit Payments Diversified 2B+ transactions in product portfolio- FY22 Transactional credit 500k merchants and personal loans Underwriting Access to Partnership with Strong debt raising and capital Building a c
Slide 8: What do we need to be successful in credit?
What do we need to be successful in credit? Access to customer Access to multiple Access to acquisition flywheel data sources capital Lazypay is active on 62M pre-approved base A strong balance sheet 45 000+ merchants, for transactional credit with A+ credit rating and adding ~150k users per month f
Slide 9: Transaction credit is a consumer flywheel
Transaction credit is a consumer flywheel Transaction credit drives cross-sell of other credit products and services Discovery at a trusted Adoption through high-frequency Offering longer credit duration Cross-sell other merchant partner transactional credit products like personal loans financial se
Slide 10: We have built a resilient consumer credit portfolio…
We have built a resilient consumer credit portfolio… Diversified product offering – BNPL, Personal loans, Co-lending Monthly Issuances ($m)1 Cumulative Customer base (k) 70 3 100 60 Decline in issuances Covid second wave due to Covid 50 Initial recovery supported 1 800 by the resilience of BNPL 40 1
Slide 11: …and scaled the business by keeping loss rates low…
…and scaled the business by keeping loss rates low… Revenue growth1 Annualized loss rate of personal loans -53% 6% Improvement in profitability driven by 4x • Increasing scale 3% • Diversification of sources of funds • Leveraging data for optimizing loss rates Pre-Covid Post-Covid • Economies of sca
Slide 12: … and we see a clear path to profitability
… and we see a clear path to profitability Expected unit economics at scale / steady state Long (9%) term (3%) 6%+ (5%) 23% Net Revenue Margin Cost of capital Loss rate Marketing and overheads Trading Profit Margin Current state 22% 10% 4% 7% +1% Leverage Focus on higher Diversifying Reduced overtim
Slide 13: We are building a digital bank for the Indian mass market…
We are building a digital bank for the Indian mass market… India offers tremendous head-room for Fintech business India Fintech addressable market ($B)1 FY21E FY26E 2 700 Payments and credit provides Fintech opportunity an opportunity to 1 600 ~$5 - $6T by expand further 1 200 2026 800 900 into digi
Slide 14: LazyPay, the Financial Super App
LazyPay, the Financial Super App Financial super app Spend, Borrow, Shop, Save and Guard with Fintech – Credit | 14
Slide 15: Takeaways
Takeaways 1. There is massive potential in consumer and SMB credit in India 2. PayU is already operating at scale as a Fintech leader in India 3. PayU has the competitive advantage and right to win in credit in India 4. PayU will pursue this opportunity with a clear path to profitability 5. PayU wil
Slide 16: Q&A
Q&A