Prosus N.v. Class N · EURONEXT:PRX
Prosus N.v. Class N — H1 FY2023 Earnings Presentation
47 slides from Prosus N.v. Class N's earnings presentation, November 2022
Slide 1: Detailed Financials
Detailed Financials For the six months ended 30 September 2022
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: Table of Contents
1. Group Financials 2. Segmental Financial Review 3. Capital Allocation & Share Count Update Table of Contents 4. Fixed Income Debt Review 5. Appendix
Slide 4: Group Financials
Prosus Group Financials
Slide 5: Lower Tencent contribution & Ecommerce investment drive losses
Lower Tencent contribution & Ecommerce investment drive losses Summary of Group Financials from Continuing Operations • On an economic interest basis, group revenue from continuing operations grew 1% (9%) to US$16.5bn, driven by a Revenue (US$’bn)1 Trading profit (US$’bn)1 35% (41%) increase in ecom
Slide 6: Group Economic Interest Results
Group Economic Interest Results Economic Interest1 Results from Continuing Operations Revenue Adjusted EBITDA Trading profit/ (loss) US$’m 1H FY22 1H FY23 1H FY22 1H FY23 1H FY22 1H FY23 Ecommerce 3 858 5 217 (439) (879) (522) (998) - Classifieds 988 1 339 (22) (133) (42) (159) - Food Delivery 1 261
Slide 7: Group Consolidated Results
Group Consolidated Results Consolidated1 Segmental Results from Continuing Operations Revenue Adjusted EBITDA Trading loss US$’m 1H FY22 1H FY23 1H FY22 1H FY23 1H FY22 1H FY23 Ecommerce 2 753 3 240 (194) (391) (240) (450) - Classifieds 890 1 218 (23) (134) (40) (154) - Food Delivery 464 663 (105) (
Slide 8: Proportionate Results from Associates and Joint Ventures
Proportionate Results from Associates and Joint Ventures Associates and Joint Venture Proportionate Results1 Revenue Adjusted EBITDA Trading profit/ (loss) US$’m 1H FY22 1H FY23 1H FY22 1H FY23 1H FY22 1H FY23 Ecommerce 1 105 1 977 (245) (488) (282) (548) - Classifieds 98 121 1 1 (2) (5) - Food Deli
Slide 9: Strong revenue growth across our ecommerce portfolio
Strong revenue growth across our ecommerce portfolio Ecommerce revenue (US$’m)1 Segmental revenue from continuing operations (US$’m)1 • Ecommerce portfolio grew revenues 41% despite a challenging macro and operating environment. 1H FY22 1H FY23 • Excluding Etail, our core ecommerce businesses grew o
Slide 10: FCF reflects operational investment and stable Tencent dividend
FCF reflects operational investment and stable Tencent dividend Free cash flow from continuing operations (US$’m) 1H FY22 1H FY23 • Adjusted EBITDA losses increased, driven by incremental investments in scaling Adjusted EBITDA (269) (469) operations. Non-cash items 104 159 • Increased CAPEX reflects
Slide 11: Summarised income statement from continuing operations
Summarised income statement from continuing operations • Operating loss reduced mainly driven by lower FV adjustments related to share- based incentives. US$’m 1H FY22 1H FY23 • Net finance cost and share of equity 1 accounted results analysis to follow. Revenue 16 321 16 526 • Net gain on acquisiti
Slide 12: Finance costs
Finance costs Interest income / (expense): • Interest income increased driven by US$’m 1H FY22 1H FY23 higher short-term interest rates globally. • New bond issuances in July 2021 and January 2022 drove interest cost higher. Interest income 27 140 More information on Prosus’s bonds can be found in t
Slide 13: Share of equity-accounted results
Share of equity-accounted results • Our share of equity-accounted results decreased US$3bn driven by: US$’m 1H FY22 1H FY23 - Lower gains on acquisitions and Tencent1 4 131 2 017 disposals and FV adjustments of Tencent resulting in a lower Delivery Hero1 139 (391) contribution. - A positive adjustme
Slide 14: Contribution by associates and joint ventures
Contribution by associates and joint ventures IFRS Other Core HE • Equity-accounted results include the 1H FY23 (US$’m) results adjustments Contribution group’s share of the earnings of its Tencent1 associates and JV’s. 2 017 81 2 098 1 • Adjustments in headline and core Delivery Hero (391) 185 (206
Slide 15: Core headline earnings from continued operations reconciliation
Core headline earnings from continued operations reconciliation • Headline earnings decreased by US$897m driven by: US$’m 1H FY22 1H FY23 - Reduced contribution from associates which included increased losses and higher FV gains from Tencent in the prior year Headline earnings 2 260 (6) - Increased
Slide 16: Core HE impacted by reduced contribution by Tencent and investments
Core HE impacted by reduced contribution by Tencent and investments • Core headline earnings (which excludes once-off and non-operating items such Incremental Core HE from Continuing operations, YoY (US$’m)1 as amortisation of intangible assets recognised in business combinations, etc.) is not defin
Slide 17: Current assets and liabilities
Current assets and liabilities • Assets held for sale relates mainly to Current assets (US$’m) FY22 1H FY23 Current liabilities (US$’m) FY22 1H FY23 Avito. Avito was disposed of in October 2022. Inventory 470 390 Current portion of long-term debt 188 277 • Other current liabilities include a conting
Slide 18: Segmental Financial Review
Prosus Segmental Financial Review
Slide 19: Social Networks & Internet Platforms
Social Networks & Internet Platforms
Slide 20: Tencent maintains stable top line and drives recovery in earnings
Tencent maintains stable top line and drives recovery in earnings • Tencent held its revenue relatively stable while it navigated macro and sectoral challenges in the first nine months of 2022. • For the nine months ended 30 September 2022, fintech and business Tencent revenue (RMB’bn)1 services (+4
Slide 21: Tencent had a significant impact on Prosus's EPS, HEPS and Core HE
Tencent had a significant impact on Prosus’s EPS, HEPS and Core HE • Tencent share of equity accounted results decreased by US$2.1bn driven by lower operating profits and significantly lower lower fair value adjustments US$’m 1H FY22 1H FY23 Delta % (mark-to-market gains) in Tencent’s. • Under IFRS
Slide 22: Prosus adjustments for core HE are similar to Tencent's non-IFRS EPS
Prosus adjustments for core HE are similar to Tencent's non-IFRS EPS 1H FY22 1H FY23 Tencent: Jun’21 Prosus’s share Tencent: Jun’22 Prosus’s share Reconciliation from Tencent’s AFS to Prosus’s Core HE (RMB’m)1 (US$’m) (RMB’m)1 (US$’m) Tencent Interim Tencent Interim Report 2022, p.25 Report 2022, p.
Slide 23: Ecommerce
Prosus Ecommerce
Slide 24: Major businesses in the Group's Ecommerce portfolio
Major businesses in the Group’s Ecommerce portfolio Controlled and managed businesses Associates and JV’s Investments Classifieds Food Delivery1 Payments & Fintech1 Edtech1,2 Accounting: 100% consolidated Equity accounted FV through OCI 1 The illustrated logos represent the major contributors in ter
Slide 25: iFood's core business scales profitability as it invests in new initiatives
iFood’s core business scales profitability as it invests in new initiatives Core Restaurant Business Profitable1 Margin improvement from New Initiatives1,2 Core Restaurant business: Revenues benefitted from larger average basket sizes and the introduction of new revenue streams. Core New Initiativ
Slide 26: Classifieds growing through disruption, while expanding Autos business
Classifieds growing through disruption, while expanding Autos business Core Classifieds Business Profitable1 Investing to scale Autos B2C business1,3 • Consolidated classifieds revenue grew 64% to $1.2bn and generated a trading loss of $154m with continued investments on OLX Autos business. Ukraine
Slide 27: Payments sustained core growth and improved margin in credit
Payments sustained core growth and improved margin in credit Sustained Core Payments Growth1 Margin improvement from New initiatives1,2 • Consolidated Payments & Fintech revenue grew 57% to US$412m driven by a strong performance in India, Turkey and credit. • Consolidated trading losses were US$80m.
Slide 28: Strong Edtech revenue growth with investment focused on expansion
Strong Edtech revenue growth with investment focused on expansion Consolidated1 enterprise Edtech platforms, Stack Overflow and GoodHabitz, invested in Stack Overflow: product enhancement and footprint expansion • Stack Overflow was acquired in 1H FY22 and we included 2 months of revenue and trading
Slide 29: Mitigating challenging macro impact & investment in new growth areas
Mitigating challenging macro impact & investment in new growth areas Core eMAG impacted by macro1 Margin improvement in New Initiatives2,3 • Despite rising inflation and energy prices, and excluding our Hungary business which completed its restructuring process during the period, eMAG core ecommerce
Slide 30: Minority investments grew strongly
Minority investments grew strongly Classifieds Associates are breakeven1 2 Classifieds: • EMPG continues on a strong growth (US$’m) 22% (23%) 1H FY22 trajectory. OLX associates are close to 1H FY23 breakeven position in aggregate. Food Delivery: 120 • Delivery Hero reported GMV growth of 98 50% and
Slide 31: Minority investments grew strongly
Minority investments grew strongly Payments & Fintech – Remitly grows volumes and expands footprint1 Payment & Fintech: • Our share of Remitly revenue grew 46% (US$’m) 39% (46%) to US$67m driven by expanded customer 1H FY22 1H FY23 base and increased send volumes, while trading losses increased to U
Slide 32: Ecommerce Other - Ventures & Movile
Ecommerce Other - Ventures & Movile • Ecommerce Other, which includes Prosus Ventures and Movile (excluding iFood), Developing the next phase of high growth businesses1 grew strongly and improved margin by 29 percentage points. • Ventures continued to explore discerning new trends, technologies, and
Slide 33: Capital Allocation & Share Count Update
Capital Allocation & Share Count Update
Slide 34: We turned investment inward to new and existing opportunities
We turned investment inward to new and existing opportunities… • With a rise in the cost of capital, M&A We focused on organic investment into high potential businesses and purchasing our stock investment of US$230m was considerably lower than in recent periods. This year we funded segment growth in
Slide 35: Transactions after 30 September 2022
Transactions after 30 September 2022 We committed €1.5bn, plus a contingent consideration of up to €300m for the Events after the reporting period acquisition of the remaining 33% of iFood. The transaction was approved by Just Eat Takeaway shareholders on 18 November 2022 and has subsequently Acqu
Slide 36: Prosus share capital update
Prosus share capital update Net total • Prosus repurchased 87m and Naspers 31 March 30 September 18 November Economic Prosus (‘000) shares in has sold 19m Prosus N shares since the 2022 2022 2022 interest launch of the open-ended share issue1 repurchase programme in June 2022, which decreased the ne
Slide 37: Naspers share capital update
Naspers share capital update • Naspers has repurchased 6m and Prosus bought 4m Naspers N shares since the 31 March 30 September 18 November Net total shares launch of the open-ended share Naspers (‘000) 2022 2022 2022 in issue1 repurchase programme in June 2022, which decreased the net total shares
Slide 38: Fixed Income Debt Review
Prosus Fixed Income Debt Review
Slide 39: We are in a Net cash position with sufficient liquidity
We are in a Net cash position with sufficient liquidity We remain well positioned to navigate through the difficult macro environment given our strong and liquid balance sheet Events impacting cash after 30 September 2022 3.2% Acquired the remaining 33.3% stake Cost of funding in iFood from Just Eat
Slide 40: Long-dated debt maturity profile
Long-dated debt maturity profile A strong balance sheet is supporting in this environment Debt maturity profile (US$’bn) Bond €600m Undrawn Bond Group RCF Bond $1bn US$2.5bn $1bn Bond $1.85bn Bond Bond Bond $1.5bn $1.25bn Bond $1.25bn Bond Bond €1bn Bond $1bn €850m €750m Bond Bond Bond €850m Bond €5
Slide 41: Prosus company sources of cash and commitments
Prosus company sources of cash and commitments LTM LTM • Prosus did not receive any dividends US$’m from Avito (Russia) in 1H FY23. Sep 21 Sep 22 Dividends from Classifieds excluding Avito increased 50%. Cash remitted to/generated at Holdco level: Dividends to HoldCo (US$'m) • Special dividends incl
Slide 42: Prosus debt – US$ bonds
Prosus debt – US$ bonds Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond Prosus Bond 2025 2027 2027 2030 2031 2032 2050 2051 2052 ISIN USN5946FAC16 USN5946FAD98 USN7163RAW36 USN7163RAA16 USN7163RAR41 USN7163RAX19 USN7163RAD54 USN7163RAQ67 USN7163RAY91 S
Slide 43: Prosus debt – EUR bonds
Prosus debt – EUR bonds Prosus Bond 2026 Prosus Bond 2028 Prosus Bond 2029 Prosus Bond 2030 Prosus Bond 2032 Prosus Bond 2033 Prosus Bond 2034 ISIN XS2430287529 XS2211183244 XS2360853332 XS2430287362 XS2211183756 XS2363203089 XS2430287875 SEDOL BPGKM02 BK7YNX8 BL53K66 BMH1RC0 BK7YNZ0 BL53KC2 BMH24N3
Slide 44: Appendix
Prosus Appendix
Slide 45: Group portfolio
Group portfolio 43% economic interest based on Local SA assets the cross-holding agreement between Naspers and Prosus 100% 100% Ecommerce Social & internet platforms Payments & 28% Classifieds Food Delivery Etail Edtech Ventures Fintech 99% 1 100% 94% 80% 100% 22% 99% 100% 63% 2 62% 62% 13% 40% 74%
Slide 46: Glossary and financial definitions
Glossary and financial definitions B2C: Business-to-customer Consolidated earnings: Results of subsidiaries only, companies which the group controls. EMPG: Emerging Markets Property Group Core Headline earnings: Core Headline Earnings is a non-IFRS measure and represent headline earnings for
Slide 47: Further information and investor relations contact
If you require any further information, please visit our website www.prosus.com or alternatively email InvestorRelations@prosus.com