Prosus N.v. Class N · EURONEXT:PRX
Prosus N.v. Class N — Debt Investor Presentation (November 2021)
51 slides from Prosus N.v. Class N's debt investor presentation, November 2021
Slide 1: Fixed Income Investor Update November 2021
Non-deal Roadshow [Insert Tab Here] Fixed Income Investor Update November 2021
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) THIS PRESENTATION IS NOT AN OFFER OR AN INVITATION TO BUY OR SELL SECURITIES IN ANY JURISDICTION WHERE SUCH OFFER OR INVITATION TO BUY OR SELL SECURITIES WOULD BE PROHIBITED This presentation has been prepared by Prosus N.V. (the “Company”), a subsidiary of Naspers Limited (“Naspers
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) To the fullest extent permitted by law, neither Naspers, the Company nor any of their respective subsidiary undertakings or affiliates, directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for (whether in contract, tort or otherwise)
Slide 4: Agenda
1. Group Overview [Insert Tab Here] 2. Key credit highlights 3. 1H FY22 financial highlights and overview Agenda Bond Investor Presentation July 2021 3. Thoughts for the future 4
Slide 5: Group overview
[Insert Tab Here] Group overview 5
Slide 6: Prosus is a global consumer internet company
Prosus is a global consumer internet company… c. $178bn $16.6bn Market value of listed assets2 Revenue 1H FY22, 32% YOY5 #1 $219bn $2.9bn European consumer internet company1 Group NAV3 Trading Profit 1H FY22, 8% YOY5 +100 39% 53% Countries Group IRR4 YOY Ecommerce revenue growth 1H FY225 6 1. Based
Slide 7: Unique exposure to high growth markets and business models
…With unique exposure to high growth markets and business models A diversified portfolio – geographically, across business lines, revenue streams and different business life cycles Classifieds Payments & Fintech Social & Internet Platforms 5 >300m >1bn Monthly Active Transactions Users1 Processed in
Slide 8: We are one of the top consumer internet companies
We are one of the top consumer internet companies …and the largest consumer internet company in Europe Market Capitalisation1 – European consumer internet stocks ($'bn) 1.4x next 117 largest company 85 32 23 21 17 16 15 8 8 1. Market data as of September 30, 2021. Source: Factset. 8
Slide 9: Our strategy builds businesses with sustainable growth potential
Our strategy builds businesses with sustainable growth potential… …where we can FOCUS Building global …addressing …in high build sustainable AREAS technology leaders social needs growth markets leadership positions OPERATING Global Local Investor Operator MODEL outlook entrepreneurs CORE Active Focu
Slide 10: Significant growth over time
…and has produced significant growth over time… Classifieds Building a long-lasting 43% ecosystem for the future 5 year CAGR1 Market leaders in many Food Delivery countries pursuing meaningful 145% 5 year CAGR1 adjacencies Payments & A significant opportunity in India as consumers shift to 33% Finte
Slide 11: Allocating capital wisely and in a balanced way
… allocating capital wisely and in a balanced way … Creating and crystallising value over time 28% $44bn1 >30% 8 of capital IRR from Tencent proceeds Assets becoming public over the allocated last 6 years over 59% 6 years 13% Assets purchased M&A with with proceeds of the 2018 Tencent IPO’s over the
Slide 12: Added significant additional value
…which has added significant additional value… Listed assets with further …while we scale our ecommerce segment into large valuable platforms runway for growth… Net Asset value of ecommerce2 ($’bn) $49bn2 49 1H FY22 39 Net Asset Value 19 22 9 14 FY17 FY18 FY19 FY20 FY21 1H FY22 $166bn 22% $21.5bn 3
Slide 13: Significantly enhanced our credit profile
... and significantly enhanced our credit profile Within the low interest rate environment we increased leverage from conservative historic levels 5 Year debt profile Fi nancial debt ($'bn) Avg interest rate (%) BBB-/Baa3 S&P / Moody’s 6% 5.2% 5.0% 4.9% 5% Investment Grade Commitment 3.7% 4% 3.1% 3%
Slide 14: Committed to an IG rating and sustainable capital structure
We remain committed to an IG rating and a sustainable capital structure Credit metric guidelines Investment Grade Rating In line with our commitment to maintain an investment grade credit rating and a sustainable capital structure we monitor the following key credit metrics. While our balance sheet
Slide 15: Key credit highlights
[Insert Tab Here] Key credit highlights 15
Slide 16: Key credit highlights
Key credit highlights 1 2 3 4 5 Leading global internet portfolio of Proven investment Hold co. cash Continued focus on companies with track record and cash generation growing Strong balance sheet our ESG integration diversified business realisation rapidly mix Leading positions in multiple Discipli
Slide 17: Leading global internet portfolio with diversified business mix
1 Leading global internet portfolio of companies with diversified business mix
Slide 18: A portfolio of fast growing leading global internet businesses
A portfolio of fast growing leading global internet businesses A portfolio that provides significant growth potential and diversity Social and Ecommerce Internet Platforms Payments & Classifieds Food Delivery Edtech Etail Ventures Fintech 43% 145% 33% 56% 32% 45% 5-year 5-year 5-year FY21 5-year FY2
Slide 19: Diversified business mix across geographies, segments and lifecycles
Diversified business mix across geographies, segments and lifecycles Operations across 100 geographies Diverse ecommerce revenue1 streams Edtech & Other 5% Etail 25% Classifieds 31% Food Delivery Edtech Ventures Food Delivery Payments & Fintech 30% 9% Classifieds Payments & Etail Social & Internet F
Slide 20: Classifieds focused on strategic markets and building an ecosystem
Classifieds focused on strategic markets and building an ecosystem Strong growth at the core ahead of our peers OLX Autos opportunity scaling Number of transactions (000)3 2 Year Revenue CAGR1 30% 10% Industry Average 21% 273 273 18% 16% 9% 7% 7% 6% 1% 69 56 OLX Group OLX Core Cargurus REA Group Sco
Slide 21: Food Delivery growing strongly as opportunity set expands
Food Delivery growing strongly as opportunity set expands Strong growth at the core, expanding reach and scale Strong execution in adjacencies iFood Total Orders (m) Convenience Order and GMV Growth Orders GMV 553 3P 1P Groceries 345% 281% 107% 361 261% 3 Year CAGR 276 250 205% 182% 141 127% 68 FY18
Slide 22: PayU's significant step up in size, valuation and opportunity
PayU’s significant step up in size, valuation and opportunity Strong growth at the core BillDesk2 transaction creates a top-10 online payments provider globally Top-10 online payments players by size (TPV, $bn, FY21)3 Global #7th largest PayU moves from Top 25 player globally Total Payment Value1 ($
Slide 23: Edtech portfolio scaling rapidly in value
Edtech portfolio scaling rapidly in value Invested in a set of assets with incredible potential Invested early and for good reasons Edtech segment ($bn) 5.0 Enterprise / Vocational 1 K-12 3.5 >40% IRR 2.9 1.4 2.1 2.1 Capital invested NAV 2 Listed & Unlisted portfolio Newly Acquired Controlled Assets
Slide 24: Tencent's innovation led growth in the world's largest internet market
Tencent’s innovation led growth in the world’s largest internet market Poised for long-term growth in the largest internet market Top-3 countries by GDP (PPP), 20201 8.1% 1 China’s 2021 GDP growth World-class management $24.5tr forecast $20.9tr $9.3tr 2 Solid track record in capital allocation China
Slide 25: Proven investment track record and cash realisation
2 Proven investment track record and cash realisation
Slide 26: Proven investment track record and cash realisation
Proven investment track record and cash realisation Strong track record of value creation… … and cash realisation All internet investments (incl Tencent) Current internet companies FY02 – 1H FY22 ($'bn)1,2 (ex Tencent) FY02 – 1H FY22 ($'bn)1 March August September April 2018 2018 2019 2021 39% IRR 2
Slide 27: Hold co. cash generation growing rapidly
3 Hold co. cash generation growing rapidly
Slide 28: Improved profitability and generation of central cash flows
Improved profitability and generation of central cash flows Consolidated trading profit from profitable Dividends to HoldCo (US$m) ecommerce businesses (US$m)1 25% 725 YoY xxx 44% 154 YoY 578 120 Classifieds 286 Tencent dividend 571 199 458 1H FY21 1H FY22 1H FY21 1H FY22 1. 1H FY21 has been adjuste
Slide 29: Holding company sources of cash and commitments
Holding company sources of cash and commitments US$’m FY20 FY21 1H FY21 1H FY22 • Classifieds businesses generating significant cash flow Cash remitted to/generated at Holdco level: Tencent dividend 377 458 458 571 Classifieds portfolio 305 229 120 154 • Tencent dividends of $571m (33% like-for-like
Slide 30: Strong balance sheet
Prosus @) Strong balance sheet
Slide 31: Well-balanced maturity profile and ample liquidity
Well-balanced maturity profile and ample liquidity Debt maturity profile ($’m) US$ bonds EUR bonds ü No short-term bonds Undrawn RCF or debt facilities Comfortable ü No significant liquidity profile maturity towers in Undrawn as of any single year September 30, 2021 ü $13.6bn cash cushion1 2 500 Pro
Slide 32: Significant liquid asset base leading to low LTV
Significant liquid asset base leading to low LTV Strong performance of underlying asset base and conservative debt profile Conservative LTV ratio Debt and liquidity comparison ($'m) Cash Listed assets Unlisted assets cushion1 cushion2 cushion2 1.3x 17.0x 3.6x LTV currently 5.0% 37.8 177.8 177.8 Hist
Slide 33: Continued focus on our ESG integration
5 Continued focus on our ESG integration
Slide 34: Encouraging progress on sustainability
Encouraging progress on sustainability Our scope and boundaries are Our approach Progress made based on ownership and control Dow Jones Sustainability Europe Index inclusion endorsed by 2021 score Lead Sustainable Value creation Improved our 2021 risk rating to low risk from medium risk Do good Inve
Slide 35: 1H FY22 financial highlights and overview
[Insert Tab Here] 1H FY22 financial highlights and overview 35
Slide 36: Strong growth continues on top of increased scale
Strong growth continues on top of increased scale 1H FY22 Highlights • Ecommerce revenue continues to accelerate • Operations and investments scale further and grow in value • Profit growth from mature businesses, with investment in growth extensions • ~40 investments to expand existing ecosystems a
Slide 37: Strong revenue growth with increased investment for long-term growth
Strong revenue growth with increased investment for long-term growth Profit from mature businesses increased while we invested into growth extensions 1H FY22 YoY Growth Group Revenue1 $16,634 29% Ecommerce Revenue1 $4,171 53% Trading Profit1 $2,935 8% Core HEPS 148 US¢ 7% 1. Reported on an economic-
Slide 38: Incredible momentum across our segments
With incredible momentum across our segments … … we have achieved scale in several markets and we are investing to amplify and extend that growth Classifieds Food Delivery Payments & Fintech Edtech 101% 86% 44% 51% 1H FY22 Revenue1 growth 1H FY22 Revenue1 growth 1H FY22 Revenue1 growth 1H FY22 Reven
Slide 39: Prosus Summary Financials: economic interest basis
Prosus Summary Financials: economic interest basis1 ($bn) Growth % (Local currency excluding M&A) Revenue Trading profit 34% (33%) 28.8 49% (44%) 5.6 21.5 31% (29%) 18.3 16.6 3.8 8% (8%) 15.6 3.4 3.1 2.9 12.7 2.7 FY18 FY19 FY20 FY21 1H 1H FY18 FY19 FY20 FY21 1H 1H FY21 FY22 FY21 FY22 Source: Company
Slide 40: Summary Financials - Core ecommerce portfolio economic interest
Summary Financials - Core ecommerce portfolio economic interest1 ($bn) Growth % Margin% (Local currency excluding M&A) Classifieds Food Delivery Payments & Fintech Edtech Revenue1 Revenue1 Revenue1 Revenue1 107% (101%) 42% (44%) 107% (86%) 135% (51%) 7% (-3%) 1 301 27% (29%) 359 252 65 605 99% (141%
Slide 41: Prosus Summary Financials: consolidated basis
Prosus Summary Financials: consolidated basis1 ($bn) Growth % (Local currency excluding M&A) Revenue Trading Profit 54% (56%) 5.1 41% (41%) 0.0 3.3 3.1 2.7 -0.2 2.2 -0.2 -0.3 -0.4 61% (70%) >100% FY19 FY20 FY21 1H FY21 1H FY22 FY19 FY20 FY21 1H FY21 1H FY22 Core Headline Earnings Free Cash Flow 45%
Slide 42: We accelerated M&A in FY22 to advance our strategy
We accelerated M&A in FY22 to advance our strategy … … and expand our ecosystem for long-term growth Acquisitions / Investments (US$’bn) 9.91 $2.1bn M&A 5 Year average FY17-FY21 3.6 3.1 2.2 1.3 0.6 FY17 FY18 FY19 FY20 FY21 FY22 YTD 1. Announced a $4.7bn acquisition of BillDesk in August 2021, the tr
Slide 43: Successful exchange transaction credit neutral
Successful exchange transaction credit neutral Prosus’s portfolio of unique fast growing business and investments Public Private And And many many others others $218.7bn NAV Ownership and distribution governed by agreement Credit impact neutral as transaction did not change the value or composition
Slide 44: Key takeaways and thoughts for the future
Key takeaways and thoughts for the future 1 Our businesses are operating at scale and with momentum, leading to significant and consistent NAV accretion 2 We have an excellent track record of allocating capital wisely and we will invest further to expand the opportunity set of each our businesses an
Slide 45: Appendix
Appendix: Listed Assets Business models Group Portfolio 45
Slide 46: Significant liquid asset base continues to increase in value
Significant liquid asset base continues to increase in value Listed Assets Totalling $178bn1 Assets listed after September 30, 2021 Prosus’s stake of market cap1 Prosus’s stake of market cap2 29% 27% 27% 38% 14% $164.3bn $1.3bn $8.8bn 3 $0.6bn $0.5bn 23% 5% 2% 15% 0.1% $1.4bn $1.0bn $0.3bn $0.2bn $0
Slide 47: Classifieds' innovation driving growth today and in the future
Classifieds' innovation driving growth today and in the future Scaling a transaction ecosystem Operating exceptional companies Our Classifieds portfolio around C2C trade Avito1 Revenue RUB’bn Marketplace Inspection reports 31 >300m3 Pay & Ship Instant cash average monthly users 26 42% CAGR Wallet Fi
Slide 48: Food Delivery scaling in an ever-increasing market opportunity
Food Delivery scaling in an ever-increasing market opportunity Developing a deep ecosystem in on- Operating exceptional companies Our Food Delivery portfolio demand commerce iFood Brazil Orders (m) 542 73% B2B Data insights YOY growth in GMV1 Loyalty Cloud kitchens Virtual & 151% CAGR Meal vouchers
Slide 49: Scaling presence in India into massive Payment & Fintech opportunity
Scaling presence in India into massive Payment & Fintech opportunity Creating a broader Fintech ecosystem Operating exceptional companies Our Payment & Fintech portfolio for merchants & consumers India Total Payment Value (TPV) $bn 20 high growth markets Credit Credit 48% Online payments Deposits gr
Slide 50: Group portfolio
Group portfolio Ecommerce Social & Internet Platforms Payments & Classifieds Food Delivery Etail Edtech Ventures 29% FinTech 99% 1 100% 94% 80% 14% 24% 27% 99% 100% 62% 2 42% 24% 15% 40% 72% 27% 41% 13% 39% 91% 36% 10% 15% 99% 100% 13% 13% 14% 82% 13% 38% 10% 19% 3 2% 3 100% 16% 23% 62% 22% 4% 3 Org
Slide 51: Glossary of financial terms
Glossary of financial terms Economic interest refers to the Group’s share of revenue or trading profit from investments in associated companies and joint ventures which are presented on a proportionately consolidated basis for segmental reporting Economic purposes in accordance with IFRS 8, Operatin