Prosus N.v. Class N · EURONEXT:PRX
Prosus N.v. Class N — IPO Roadshow (September 2019)
52 slides from Prosus N.v. Class N's IPO roadshow presentation, September 2019
Slide 1: A New Global Consumer Internet Group
A New Global Consumer Internet Group August/September 2019
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER OR AN INVITATION TO BUY OR SELL SECURITIES IN ANY JURISDICTION. IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Naspers Limited (Naspers), Prosus N.V. (currently named Myriad International Ho
Slide 3: Disclaimer (cont’d)
Disclaimer (cont’d) To the fullest extent permitted by law, neither Naspers, the Company nor the Financial Advisers, nor any of their subsidiary undertakings or affiliates, directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for (whether in contract,
Slide 4: Prosus is a leading global consumer internet group
Prosus is a leading global consumer internet group >1.5bn TOP 10 77 CUSTOMERS ACROSS PURE PLAY INTERNET STOCK LEADERSHIP POSITIONS2 91 MARKETS US$18bn US$11bn REVENUES FY’191 CAPITAL DEPLOYED3 C. US$100bn 30% 20% MARKET CAPITALISATION5 REVENUE GROWTH FY’191 IRR4 Source: Company information failed an
Slide 5: Helped build some of the world’s leading internet businesses
Helped build some of the world’s leading internet businesses Global leader Operations in in classifieds 18 markets 350m Over 900m users transactions processed 38 Countries1 >US$30bn total payment value Food Delivery Global leader More than in food 1bn2 Weixin and >403 WeChat users countries #1 onlin
Slide 6: Our focused strategy
Our focused strategy We partner with local entrepreneurs to build businesses with platform potential… … to address major societal needs … in high-growth markets … where we can build sustainable leadership positions Trade in 28 markets Classifieds Present in 13 out of top 20 fastest Payments & growin
Slide 7: Uniquely positioned as an operator and an investor
Uniquely positioned as an operator and an investor OPERATOR INVESTOR Benefit from operations in local Unparalleled access to investment markets opportunities Empower entrepreneurial and Uniquely positioned for global seasoned talent buy-and-builds Ability to drive organic and Ability to fund at ever
Slide 8: A replicable model that we have deployed with success
A replicable model that we have deployed with success SCALE Continue organic and inorganic INVEST growth and drive profitability Deploy capital and TEST accelerate growth Experiment (R&D) and expand VENTURES 8
Slide 9: Our strategy in action – Classifieds case study
Our strategy in action – Classifieds case study SCALE Accelerate tech-driven innovation INVEST • Global tech platform Create global classifieds group • Shared services hub in Berlin TEST Committed investments • Global data sciences team Build portfolio of promising local players • Scale cornerstone
Slide 10: A strong track record of excellent returns
A strong track record of excellent returns All Internet investments (incl Tencent) Current Internet companies (ex Tencent) 1 FY’02 – FY’19 (US$bn) 2,4 FY’08 –FY’19 (US$bn) 2 165 41% IRR 23 20% IRR 13 11 3 3 Total Invested Capital Market & Analyst Valuation Total Invested Capital Market & Analyst Val
Slide 11: We see multiple drivers of long-term sustainable growth
We see multiple drivers of long-term sustainable growth Prosus TOMORROW New Invest in new Verticals categories Classifieds Expand into Prosus adjacent verticals Payments TODAY & Fintech In-market consolidation and Scale existing expansion into Food Underlying market internet platforms Delivery growt
Slide 12: Leading global internet businesses…
Leading global internet businesses… CLASSIFIEDS PAYMENTS & FINTECH FOOD DELIVERY A world without financial borders where Transform the way people consume, Empowering people to upgrade their lives everyone can prosper source and experience food SOCIAL & INTERNET PLATFORMS VENTURES & OTHER 1 Source: C
Slide 13: …poised for disruptive growth in our prioritised segments
…poised for disruptive growth in our prioritised segments Focus Segments CLASSIFIEDS PAYMENTS & FINTECH FOOD DELIVERY Industry Dynamics Total Addressable 1 2 3 Market (TAM) US$30bn US$1.4tn US$331bn FY’19 YoY Revenue Growth4 37% 28% 57% Industry Peer Average Margin5 40-60% 30-45% 25-40% Source: Comp
Slide 14: Classifieds – Attractive model with great returns
Classifieds – Attractive model with great returns CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Classifieds ecosystem At the centre of supply and demand, creating Real Estate matches for consumers’ most important items Jobs Cars Sizeable TAM of US$30bn1, with larg
Slide 15: Building the largest Classifieds player in the world
Building the largest Classifieds player in the world CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS #1 position in 28 markets1 >350m MAU2 Growth: >2x industry average3 Source: Company information 1. Based on daily average users as per SimilarWeb 2. MAU refers to Mo
Slide 16: Fastest growing player, targeting a significant market opportunity
Fastest growing player, targeting a significant market opportunity CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Significant runway for growth in global classifieds market Fastest growing classifieds player globally at scale 40% Prosus 2 37% US$30.1bn Classifieds
Slide 17: Attractive economics when at scale
Attractive economics when at scale CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Brazil YoY growth YoY growth YoY growth # of paying +21% # of paying +47% # of paying +40% listers listers listers App MAUs +23% App MAUs +13% App MAUs +11% Financials (RUBbn)1 Financ
Slide 18: Profitability improving while gaining scale and operating leverage
Profitability improving while gaining scale and operating leverage CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Accelerating monetisation Fast revenue growth Improving profitability Average monthly paying listers (m) US$m 1 Trading loss US$m 1 30% 33% 47% (34%) 4
Slide 19: Payments – A dynamic and fast growing industry
Payments – A dynamic and fast growing industry CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Payments ecosystem A large and growing segment with global purchase volume growing from US$0.8tn to US$1.4tn by Consumer 20221 credit SME Crypto credit Empowering billions
Slide 20: Building the leading platform in growth markets
Building the leading platform in growth markets CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS 300+ payment options >US$30bn processed payment value 18 markets >900m transactions processed 1 1 1 Source: Company information 20 1. Wibmo and Red Dot Payment transactio
Slide 21: Full digital financial services provider in India
Full digital financial services provider in India CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS PAYMENTS: # 1 ONLINE PAYMENTS PLAYER CREDIT: # 1 ALTERNATE CREDIT PLATFORM <10% of Indian Significant headroom Best in class stack Build full suite of population (10x g
Slide 22: Rapid growth in core KPIs and improving monetisation
Rapid growth in core KPIs and improving monetisation CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Acceleration in key operational KPIs Fast revenue growth Improving profitability Total payments value (US$bn) US$m1 Trading loss US$m1 Core PSP Trading 1.6m 2.0m 2.9
Slide 23: Food Delivery – Attractive platform addressing societal needs
Food Delivery – Attractive platform addressing societal needs CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Food Delivery ecosystem Serving one of the most essential human needs Multi Cloud -Category Kitchens Private Global market opportunity of US$331bn by 20221
Slide 24: Building the global food delivery leaders
Building the global food delivery leaders CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS #1 position in 35 markets1 Covering >4.0bn people Order growth: >100% YoY (annualised order volumes)2 Direct investments Indirect investments Source: Company information 1. Bas
Slide 25: Biggest opportunity lies in developing markets
Biggest opportunity lies in developing markets CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS US UK BR IN AOV / Country minimum wage (Illustration) Population 328m 66m 211m 1,321m 6.00 19-22E Foodservice 5.00 3% 4% 5% 6% Spend CAGR1 4.00 Average Order Value2 $10 $1
Slide 26: Leading and profitable at the core, investing to grow the market
Leading and profitable at the core, investing to grow the market CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS iFood was profitable before deciding to invest to Swiggy proved it could be profitable, Growing the market1 expand the market and go deeper into 1P but w
Slide 27: Investments, while early, show returns and future potential
Investments, while early, show returns and future potential CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Clear market leader in Brazil Market leader in India Market leader in 33 of 411 countries In 500 cities in every state in Brazil 130 cities Covering 1.2bn peo
Slide 28: Ventures is in our DNA and has unearthed significant value
Ventures is in our DNA and has unearthed significant value CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Dedicated team in key innovation hubs Everything that we are now, started small - we have done this many times Amsterdam We invest to learn and then we grow Sa
Slide 29: Investing in new industries disrupted by tech
Investing in new industries disrupted by tech CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Food Education Health Graduated to a core Develop tech-enabled online Build innovative tech platforms to business segment learning designed to democratise improve peoples’
Slide 30: Longstanding and successful relationships with our listed platforms
Longstanding and successful relationships with our listed platforms CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS US$124bn 31.1% US$1.4bn 28.0% Attributable market cap1 stake held by Prosus Attributable market cap1 stake held by Prosus • Initial investment of US$3
Slide 31: China is an extremely attractive market
China is an extremely attractive market CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS China expected to be the largest economy in the world by 2030… … and has a mature, well developed tech sector Top-3 countries by GDP (PPP), 2030 China’s tech sector as % of USA,
Slide 32: Tencent offers us deep exposure to China ecosystem
Tencent offers us deep exposure to China ecosystem CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS Chinese tech ecosystem (with Tencent involvement) Tencent’s key platforms Didi Kuaishou PingDuoDuo 32
Slide 33: Tencent’s outstanding performance and potential
Tencent’s outstanding performance and potential CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS China mobile internet average daily hours by users, 11/14 – 7/19 (bn) 5.0 4.0 3.0 2.0 1.0 OTHERS 0.0 March 2015 March 2016 March 2017 March 2018 March 2019 May 2015 May 2
Slide 34: India represents a key market with significant growth upside
India represents a key market with significant growth upside CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS India is expected to be the second largest economy in the Underlying market drivers represent significant growth potential2 world by 2030 Top-3 countries by
Slide 35: Prosus is well positioned to target India opportunity
Prosus is well positioned to target India opportunity CLASSIFIEDS PAYMENTS FOOD VENTURES SOCIAL & INTERNET & FINTECH DELIVERY PLATFORMS WE ARE THE FIRST CHOICE BROAD EXPOSURE ACROSS STRONG TRACK RECORD GROWTH INVESTOR IN INDIA THE INDIAN TECH ECOSYSTEM OF VALUE CREATION Investing since 2008, at the
Slide 36: A history of outperformance
A history of outperformance
Slide 37: Prosus Summary Financials
Prosus Summary Financials1 Revenue Trading profit (US$bn)2 (US$bn)2 52% (56%) 11% (21%) 48% (51%) 17% (30%) 18.3 3.1 3.4 15.6 10.6 2.0 FY'17 FY'18 FY'19 FY'17 FY'18 FY'19 Core headline earnings Free cash flow (US$bn)3 (US$m)4 68% 23% (202) (121) 3.1 (403) 2.5 50% 40% 1.5 FY'17 FY'18 FY'19 FY'17 FY'1
Slide 38: 40% improvement in FCF
40% improvement in FCF Incremental FCF, YoY (US$m)1 +US$81m, 40% (121) (202) (31) 95 42 (25) FY'18 FCF Cash from operations Tax paid Investment income Capex and leases FY'19 FCF 38 1. FCF defined as EBITDA less adjustments for non-cash items, working capital, taxation, capital expenditure, capital l
Slide 39: Fast growing business contributing significantly to cash flows
Fast growing business contributing significantly to cash flows Consolidated trading profit from profitable ecommerce businesses Sources of free cash inflow excluding VE (US$m)1 (US$m)2 16% (44%) 22% 666 1 Total 546 36 Other 3 Payments 31 287 399 265 343 Classifieds 342 247 Tencent Dividend FY'18 FY'
Slide 40: Strong Balance Sheet
Strong Balance Sheet Debt maturity profile Net cash (US$m) Undrawn as at 31 (US$m) as of March 2019 March 2019 Group RCF1 2,500 9,160 3,247 Bond 5,913 Bond 1,200 Bond 1,000 1,000 CY'19 CY'20 CY'21–'22 CY'23 CY'25 CY'27 Cash Debt 2 Net Cash Source: Company information 1. Lenders with total commitment
Slide 41: Creating a more efficient vehicle to execute our strategy
Creating a more efficient vehicle to execute our strategy
Slide 42: Why now? Listing is a natural progression of a 5 year process
Why now? Listing is a natural progression of a 5 year process RESTRUCTURE ENHANCE EXTEND • Re-organised into global segments and • Consolidated key assets into market leading • Over US$2bn invested in Food segment in established excellent ecommerce team positions the past three years4 • ~US$6bn of n
Slide 43: Why Euronext Amsterdam?
Why Euronext Amsterdam? Depth of market Index inclusion Euronext markets To be announced combined have close to before admission 1,300 listed issuers worth c. €3.4tn in market capitalisation1 Amsterdam presence JSE compliance Prosus has an established Similar listing requirements presence in Amsterd
Slide 44: THANK YOU
\ THANK YOU
Slide 45: eMAG is a leading ecommerce player in Central Eastern Europe
eMAG is a leading ecommerce player in Central Eastern Europe CEE footprint with access to ~75m European Union citizens eMAG’s gross merchandise value has been growing at ~30% p.a. over last 3 years GMV (US$bn) eMAG holds a #1 position in B2C 1 retail 30 % in Romania (profitable CAGR: 1.7 operations)
Slide 46: Summary Statement of Financial Position
Summary Statement of Financial Position1 Combined assets (US$m) FY'17 FY'18 FY'19 Combined liabilities (US$m) FY'17 FY'18 FY'19 Goodwill and other intangible assets 3,185 3,139 2,829 Total equity 11,573 24,356 27,249 Investment in associates 10,691 16,669 19,746 Total debt 2,921 3,285 3,274 Investme
Slide 47: Creating Prosus, the largest consumer internet company in Europe
Creating Prosus, the largest consumer internet company in Europe KEY BENEFITS: 100% Listed Up to 27% free • Reduces Naspers’ overweight position on JSE on JSE float* in South Africa • Prosus likely to become Europe’s largest listed consumer internet company Holds no less than 73% • Significantly inc
Slide 48: Naspers’ ownership of Prosus at various N Share elections
Naspers’ ownership of Prosus at various N Share elections % of Shareholders Electing to Receive Number of Naspers N Shares Issued Naspers’ Ownership of Prosus Prosus Free Float N Shares (m) (%) (%) 0.0% 0.0 73% 27% 2.5% 4.1 74% 26% 5.0% 8.1 74% 26% 7.5% 12.2 75% 25% 10.0% 16.2 76% 24% 20.0% 32.4 78%
Slide 49: Relationship of Naspers and Prosus going forward
Relationship of Naspers and Prosus going forward Prosus is a new, additional vehicle to execute our long-standing strategy in a more efficient way Naspers will own no less than 73% of Prosus and will focus its investment in South Africa Substantially all same assets, same management, same board, sam
Slide 50: We are led by an experienced, entrepreneurial team
We are led by an experienced, entrepreneurial team BOB VAN DIJK BASIL SGOURDOS MARTIN SCHEEPBOUWER LAURENT LE MOAL LARRY ILLG Group CEO Group CFO CEO Classifieds CEO payments & Fintech CEO food and Ventures 15+ years industry experience 20+ years industry experience 15+ years industry experience 20+
Slide 51: Key dates
Key dates 25 March 2019 2 September 2019 11 September 2019 16 September 2019 Announcement Roadshow Listing Settlement of Shares P 51
Slide 52: Slide 52