Slide 1: Financial Results
Financial Results For the year ended 31 March 2023
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: Approval to unwind the cross-holding structure has been received
Approval to unwind the cross-holding structure has been received We are now putting this proposal forward to Naspers and Prosus shareholders to vote on Resulting in a simplified Proposal has substantial benefits for Naspers and Prosus shareholders corporate structure Naspers Public 1 Ensures the con
Slide 4: Agenda
1. Business Update 2. Financial Update Agenda 3. Closing remarks
Slide 5: Business Update
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Slide 6: Our strategy is a strength in this period of increased volatility
Our strategy is a strength in this period of increased volatility … Building global technology leaders, addressing big societal needs in high growth markets Operating businesses Investments Consistently compounding value over time and growing NAV per share $141bn total NAV1, €105 NAV per share, 14%
Slide 7: We executed well across key objectives
We executed well across key objectives 1 Sustained revenue growth across our core segments, well ahead of peers 36%1 consolidated revenue growth (excl. Etail) from our resilient core businesses despite difficult macroeconomic challenges 2 Increased confidence in our H1 FY25 profitability ambition H1
Slide 8: Our core business segments continued their strong performance
Our core business segments continued their strong performance … Strong execution across our ecommerce segments which have achieved scale and have adjacencies to drive further growth Food Delivery Core Classifieds Payments & Fintech Edtech 35% 20%1 52% 21% YoY Revenue growth YoY Revenue growth YoY Re
Slide 9: … with industry leading levels of growth …
… with industry leading levels of growth … Ecommerce1 Food Delivery1 Core Classifieds1,2 FY23 revenue growth 36% growth excl. Etail, compared to peer average of 35% 20% 14% 21% 3% FY23 revenue growth Prosus Peer average Prosus Peer average 16% Payments & Fintech1 Edtech1 FY23 revenue growth 8% 52% 2
Slide 10: … and we remain on track to deliver profitability during H1 FY25
… and we remain on track to deliver profitability during H1 FY25 H1 FY23 represents the high point of losses, even as our businesses continue to invest in high conviction growth areas Consolidated Ecommerce trading losses (US$’m)1 Ecommerce (excl. OLX Autos) OL X Autos² (11) $111m improvement (47) f
Slide 11: We allocated capital responsibly to create long-term shareholder value
We allocated capital responsibly to create long-term shareholder value We invested $10.5bn1 to repurchase our stock and $2.5bn mainly in companies in which we have a deep understanding Investments in FY23 Shifted capital to buyback our stock given the level of discount and market conditions Investin
Slide 12: Our share repurchase program is permanently enhancing NAV/share
Our share repurchase program is permanently enhancing NAV/share Program has improved NAV/share by 6% in 12 months and will continue to compound over time Illustrative NAV per share annualising buyback programme at current pace1 Priced at 23 June 2023 Annual accretion +7% +6% +6% 24% $23bn 14% of fre
Slide 13: We advanced our strategic priority to create sustainable value
We advanced our strategic priority to create sustainable value Tackling climate change Investing responsibly Set science-based climate targets Limiting exposure to revenues from excluded activities and sectors >50% applying the SBTi guidance of Naspers-Prosus portfolio companies to Increasing exposu
Slide 14: We are developing an AI-first capability and culture
We are developing an AI-first capability and culture At the forefront of AI adoption Real business impact today • The Prosus AI Lab, an industry leading applied AI center, Leveraging community and was founded in 2018 Teams through AI • A global and growing community of over 800 AI practitioners in o
Slide 15: Financial Update
Financial Update Basil Sgourdos
Slide 16: FY23 Financial Highlights
FY23 Financial Highlights Strong ecommerce revenue growth (36% excl. Etail) Proforma FY23 Financial Summary (excl. OLX Autos) H1 H2 FY23 Improved ecommerce trading margin (H2 losses are 43% lower Economic interest1 than H1) – increasing confidence in our ambition to achieve profitability during H1 F
Slide 17: Strong revenue growth in a tough environment …
Strong revenue growth in a tough environment … FY23 Ecommerce consolidated revenue growth by segments (%)1 FY23 H1 FY23 H2 FY23 57% 52% 36% 49% FY23 Ecommerce growth excl. Etail 39% 35% 30% 30% 20% 20% 20% 21% 18% 18% 16% 15% -4% -4% -4% Ecommerce Food Delivery Core Classifieds² Payments & Fintech E
Slide 18: … and we have increased confidence in achieving H1 FY25 profitability
… and we have increased confidence in achieving H1 FY25 profitability We took action to accelerate profitability Further profitability will be driven by (US$’m)1 (11) Scale and continued growth (47) (149) (145) Optimisation and cost reduction (221) (256) Focused incremental investment Active portfol
Slide 19: iFood is an exceptional business which is accreting significant value
iFood is an exceptional business which is accreting significant value Full Year Consolidated Food Delivery1 Strong growth and profit improvement in H2 for iFood Brazil1,3 (US$’m) Core Restaurant Business Profitable Margin improvement from New Initiatives4 35% YoY revenue growth2 23% (19%) Revenue (U
Slide 20: Classifieds grew well ahead of peers, moving to industry level profitability
Classifieds grew well ahead of peers, moving to industry level profitability Full year core consolidated classifieds1 H2 core consolidated classifieds1,4 (US$’m) FY22 FY23 Ukraine (US$’m) H2 FY22 H2 FY23 Ukraine 521 486 • The war in Ukraine and currency depreciation 20% in local markets during the y
Slide 21: PayU grew strongly, India has promising credit extension
PayU grew strongly, India has promising credit extension Full Year Consolidated Payments & Fintech1 Strong growth and profit improvement in H2 in both PSP and new initiatives1,3 (US$’m) Sustained Core Payments Growth Margin improvement from New Initiatives4 52% 22% (40%) YoY revenue Revenue (US$’m)
Slide 22: Edtech represents a large, earlier-stage growth opportunity
Edtech represents a large, earlier-stage growth opportunity Consolidated1 enterprise Edtech platforms, Stack Overflow and GoodHabitz, invested in product enhancement and footprint expansion Full year consolidated Edtech1 H2 consolidated Edtech1,3 (US$’m) (US$’m) FY22 FY23 H2 FY22 H2 FY23 21% YoY rev
Slide 23: Core HE impacted by a lower contribution from Tencent
Core HE impacted by a lower contribution from Tencent On a per share basis Core HEPS reduced by 20% as the buyback reduced the weighted average number of shares by 10% Incremental Core HE1, YoY (US$’m) -20% on a per share basis -24% on a per share basis (1,087) -28% (-9%) -32% (-13%) (172) (38) 245
Slide 24: FCF profile improved meaningfully vs last year and vs H1 FY23
FCF profile improved meaningfully vs last year and vs H1 FY 23 Free cash flow reflects improved working capital year over year Significant FCF improvement in H2 Incremental FCF, YoY (US$’m)1 Free cash flow (excl. Tencent dividend) (US$’m) (30) (145) (410) 380 (450) (577) 1 56 (11) 136 (15) FY22² Cas
Slide 25: Significant financial flexibility enables us to capitalise on opportunities
Significant financial flexibility enables us to capitalise on opportunities HoldCo Cash and Debt Further balance sheet enhancement Investment Grade BBB (S&P) / Baa3 (Moody’s) Net Holdco debt1 $0.5bn at 31 March 2023 9.6% LTV We received Meituan shares to Based on Gross Debt2 the value of $4.7bn 4 in
Slide 26: A proposal to simplify the corporate structure
A proposal to simplify the corporate structure The Outcome Complex Structure Today Simplified Structure Post Transaction Cross-holding will be removed, but the 1 benefits of right-sizing Prosus/Naspers preserved Naspers Public Prosus Public Naspers Public Prosus Public Shareholders Shareholders Shar
Slide 27: Closing remarks
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Slide 28: We are focused on key value drivers
We are focused on key value drivers 1 2 3 4 5 Ecommerce NAV/share Highlighting Corporate Continued value profitability with growth through value through structure from Tencent industry leading open-ended crystalisation simplification growth repurchase and return program 28
Slide 29: Appendix
1. Details of Proposed Group Structure Simplification 2. Summary of FY23 Group Results 3. Results of Associates and Joint Ventures Appendix 4. Sources of Cash and Commitments 5. Summary Group Portfolio 6. Glossary
Slide 30: Details of the proposal to remove the cross-holding
1. Details of Proposed Group Structure Details of the proposal to remove the cross-holding Simplification Brief Summary of proposed transaction1 Impact on the Group ~810m new Prosus N shares issued pro rata to 1 Prosus free-float 1 Removal of the cross-holding between Naspers & Prosus ~1tn new Naspe
Slide 31: Next steps to remove the cross-holding
1. Details of Proposed Group Structure Next steps to remove the cross-holding Simplification The transaction is expected to be implemented in Q3 of 20231 Announcement 23/24 August 2023 September 2023 Expected implementation Prosus/Naspers AGM and settlement on AEX & JSE Today Q3 July 2023 September
Slide 32: H2 represents strong and measured Ecommerce growth …
2. Summary of FY23 H2 represents strong and measured Ecommerce growth … Group Results Proforma Ecommerce revenue excluding all OLX Autos operations Total Ecommerce Economic Interest Consolidated Revenue Associate and JV Revenue Economic Interest Basis1 Majority Owned Consolidated2 Businesses Minorit
Slide 33: … a result of focused incremental investment and cost efficiencies
2. Summary of FY23 … a result of focused incremental investment and cost efficiencies Group Results Proforma Ecommerce trading profit excluding all OLX Autos operations Total Ecommerce Economic interest Organic investment through P&L Associate & JV losses don’t impact cash Economic Interest Basis1 M
Slide 34: Group Consolidated Results
2. Summary of FY23 Group Consolidated Results Group Results Consolidated Segmental Results Revenue Adjusted EBITDA Trading profit / (loss) US$’m FY22 FY23 FY22 FY23 FY22 FY23 Ecommerce1 4,619 4,912 (283) (301) (370) (401) - Core Classifieds1 521 486 84 87 65 69 - Food Delivery 991 1,371 (209) (94) (
Slide 35: Proportionate Results from Associates and Joint Ventures
2. Summary of FY23 Proportionate Results from Associates and Joint Ventures Group Results Associates and Joint Venture Proportionate Results1 Revenue Adjusted EBITDA Trading profit / (loss) US$’m FY22 FY23 FY22 FY23 FY22 FY23 Ecommerce 2,954 4,179 (638) (767) (729) (892) - Classifieds 202 236 (20) 1
Slide 36: Group Economic Interest Results
2. Summary of FY23 Group Economic Interest Results Group Results Economic Interest Results excluding OLX Autos1 Revenue Adjusted EBITDA Trading profit / (loss) US$’m FY22 FY23 FY22 FY23 FY22 FY23 Ecommerce (excl. Autos) 7,573 9,091 (921) (1,068) (1,099) (1,293) - Core Classifieds 723 722 64 88 37 60
Slide 37: Strong Q1 from Tencent expected to continue
3. Results of Strong Q1 from Tencent expected to continue Associates & JVs Tencent revenue (RMB’bn)1 11% 150 142 144 145 138 140 Diverse revenue streams in 135 135 134 growth businesses Inherent profitability augmented Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 by positi
Slide 38: Food and Classifieds minority investments
3. Results of Food and Classifieds minority investments Associates & JVs Food Delivery Associates & Joint Ventures1,2 Classifieds Associates & Joint Ventures1 2 (US$’m) FY22 FY23 FY22 FY23 42% (49%) 17% (15%) 2,832 2,001 236 202 (508) (543) (28) (9) Revenue Trading Loss Revenue Trading Loss 1 Result
Slide 39: Payments and Fintech and Edtech minority investments
3. Results of Payments and Fintech and Edtech minority investments Associates & JVs Payments and Fintech Associates & Joint Ventures1 Edtech Associates & Joint Ventures1 2 (US$’m) 2 FY22 FY23 One-off adjustments 21% (17%) 35% (43%) 44 341 367 149 110 (62) (65) (62) (14) (127) (33) Revenue Trading Lo
Slide 40: Ecommerce Other – Ventures
3. Results of Ecommerce Other – Ventures Associates & JVs We continue to invest in early-stage companies with high-potential to drive the next phase of growth for the Group1 (US$’m) FY22 FY23 63% (67%) 616 378 (201) (267) Revenue Trading loss 1 Results reported on economic interest basis, i.e. equit
Slide 41: Prosus company sources of cash and commitments
4. Sources of Cash Prosus company sources of cash and commitments & Commitments US$’m FY22 FY23 Dividends to HoldCo (US#039;m) Cash remitted to/generated at Holdco level: Tencent dividend 571 565 845 Classifieds portfolio 274 130 Other dividends - 60 755 164 Interest income earned on central cash 21 41
Slide 42: Group portfolio
5. Summary Group Group portfolio Portfolio 43% economic interest based on Local SA assets the cross-holding agreement between Naspers and Prosus 100% 100% Ecommerce Social & internet platforms Payments & 26% Classifieds4 Food Delivery3 Etail Edtech3 Ventures Fintech 99% 1 100% 94% 80% 100% 23% 38% 1
Slide 43: Glossary
6. Glossary Glossary Consolidated Results: Results of subsidiaries only, companies which the Group controls. Economic Interest: A non-IFRS measure representing the consolidated earnings plus the Group’s proportionate share of the associates and joint ventures revenue and trading profit. Free cash fl
Slide 44: For further information
For further information: Visit our website: www.prosus.com or www.naspers.com Email: InvestorRelations@prosus.com