34 slides from Prosus N.v. Class N's earnings presentation, Nov 21, 2021
Slide 1: Financial Results
Financial Results For the six months ended September 2021 1
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: Agenda
1. Business Update 2. Financial Update Agenda 3. Closing remarks
Slide 4: Business Update
Business Update Bob van Dijk 4
Slide 5: 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 big social needs growth markets leadership positions OPERATING Global Local MODEL Investor Operator outlook entrepreneurs CORE Active
Slide 6: … and has created significant value over time
… and has created significant value over time … We continue to scale our Ecommerce segment into large valuable platforms Net Asset Value of Ecommerce1 ($’bn) 20% IRR $100bn 49 NAV by FY25 39 22 $49bn 19 NAV 9 14 FY17 FY18 FY19 FY20 FY21 1H FY22 53% 22% $22bn Ecommerce revenue growth2 Ecommerce IRR N
Slide 7: … across a unique and fast-growing ecommerce portfolio
… across a unique and fast-growing ecommerce portfolio Revenue CAGR1 NAV2 Classifieds Building a long-lasting ecosystem 43% $ 14bn for the future 5 year CAGR1 Food Delivery Market leaders in many countries 145% $ 18bn pursuing meaningful adjacencies 5 year CAGR1 Payments & A massive opportunity in I
Slide 8: 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 • Continued integration of sustainability initiatives into our strategy • ~40 investments to expand existing ecosystems and e
Slide 9: 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 2 Year Revenue CAGR1 Number of transactions (000) 30% 10% Industy Average 21% 273 273 18% 16% 9% 7% 7% 6% 1% 69 56 OLX Group OLX Core Cargurus REA Group Scout
Slide 10: 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 345% Groceries 281% 107% 361 261% 3 Year CAGR 276 250 205% 182% 141 127% 68 FY18
Slide 11: 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 12: Edtech portfolio scaling rapidly in value
Edtech portfolio scaling rapidly in value We have invested in a great set of assets with incredible Invested early and for good reasons potential 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 Con
Slide 13: 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 14: Allocated capital strategically to businesses and to our shareholders
Allocated capital strategically to businesses and to our shareholders 13% $44bn1 of capital allocated 28% over 59% 6 years >30% 36% of capital returned to IRR from Tencent proceeds shareholders3 $26.1bn in investments and operations2 $12.4bn Buybacks & Dividends3 $5.5bn proforma cash 2 Crystalising
Slide 15: Encouraging progress on sustainability SDGs
Encouraging progress on sustainability Our scope and boundaries are based on ownership and control Progress made Dow Jones Sustainability Europe Index inclusion endorsed by 2021 score Improved our 2021 risk rating to low risk from medium risk Top 40 company on benchmark SDGs Committed UNGC Principle
Slide 16: Financial Update
Financial Update Basil Sgourdos 16
Slide 17: Strong 1H FY22 driven by momentum of core segments
Strong 1H FY22 driven by momentum of core segments Summary financials Revenue1 ($bn) Trading profit1,2 ($bn) 1 Maintained strong revenue growth, Ecommerce growing faster 31% (29%) 8% (8%) Profit growth from mature Ecommerce businesses, coupled with 2 investment to grow ecosystems and platforms 16.6
Slide 18: Ecommerce revenue growth sustained above 50%
Ecommerce revenue growth sustained above 50% YoY Ecommerce revenue growth (%)1 Segmental revenue growth (%)1 1H FY21 141% 1H FY22 101% 53% 86% 51% 70% 54% 51% 44% 29% 4% -3% 1H FY21 1H FY22 Classifieds Food Delivery Payments & Edtech Etail Fintech 1 Results reported on an economic-interest basis, i.
Slide 19: Driving profitability in mature businesses while investing for growth
Driving profitability in mature businesses while investing for growth Ecommerce trading loss margin (%)1 Segmental trading (loss)/profit margin (%)1 1H FY21 1H FY22 3p.p 8% 5% 2% -1% 3p.p -9% -12% -8% -9% 3p.p 1p.p -25% -25% -31% 6p.p -40% 15p.p Classifieds Food Delivery Payments & Edtech Etail 1H F
Slide 20: Classifieds emerged from the pandemic stronger with healthy growth
Classifieds emerged from the pandemic stronger with healthy growth Revenue (US$’m)1 Trading profit/(loss) (US$’m)1,2 107% (101%) • Strong revenue growth driven by mature markets as we accelerate new consumer propositions such as Pay and Ship (P&S) services and the autos 1 301 transactions business.
Slide 21: Food Delivery doubled revenues and improved margin with scale
Food Delivery doubled revenues and improved margin with scale Revenue (US$’m)1 Trading loss (US$’m)1,2 • Revenue growth remained strong despite the higher base and scale set in 107% (86%) the prior year period. • Trading losses increased by $123m mainly driven by investment into groceries and other
Slide 22: Payments & Fintech growth accelerates and credit resumes
Payments & Fintech growth accelerates and credit resumes Revenue (US$’m)1 Trading profit/(loss) (US$’m)1,2 42% (44%) • Core payments continue to benefit from the shift to digital payments. We 359 are leveraging our network by launching new products and solutions for our merchants. New Initiatives wi
Slide 23: Rapid revenue growth in Edtech as we continue to expand our reach
Rapid revenue growth in Edtech as we continue to expand our reach Revenue (US$’m)1 Trading loss (US$’m)1 135% (51%) • Although Covid-19 restrictions have eased in many parts of the world, the progress made in digitizing education remains an opportunity. Technology will play a huge role in disrupting
Slide 24: Improved profitability and generation of central cash flows
Improved profitability and generation of central cash flows Consolidated trading profit from profitable ecommerce Dividends to HoldCo (US$m) businesses (US$m)1 25% 44% (44%) 725 xxx 154 578 120 Classifieds 286 Tencent dividend 571 199 458 1H FY21 1H FY22 1H FY21 1H FY22 1 Numbers in brackets represe
Slide 25: FCF reflects investment in operations, working capital and capex
FCF reflects investment in operations, working capital and capex Incremental FCF, YoY (US$’m)1 (45) 113 (183) (65) 370 (72) 118 2 1H FY21 Tencent dividends Cash from operations Working capital Capex Tax 1H FY22 (excluding WC) 1 FCF defined as EBITDA less adjustments for non-cash items, working capit
Slide 26: Significant M&A during the period
Significant M&A during the period Acquisitions/ Investments (US$’bn) 9.9 $2.6bn Average from FY18 – FY21 3.6 3.1 2.2 1.3 FY18 FY19 FY20 FY21 FY22 YTD 26
Slide 27: Diversified sources of funding, proven access to debt market
Diversified sources of funding, proven access to debt market Strong liquid financial position ($’bn) Increased leverage at lower cost of debt Net cash 1 $3.1bn at 30 September 2021 3 Year debt1 profile 6.00% 5.5% 4.7% 5.00% 3.9% 4.00% Cash 3.0% 10.5 3.00% Debt 10.5 13.6 7.9 2.00% 3.2 3.5 1.00% FY19
Slide 28: Closing remarks
Closing remarks Bob van Dijk 28
Slide 29: Key takeaways and thoughts for the future
Key takeaways and thoughts for the future 1 Our businesses are operating at scale and with momentum, leading to significant and consistent NAV accretion 2 We have an excellent track record of allocating capital wisely and we will invest further to expand the opportunity set of each our businesses an
Slide 30: Appendix
Prosus Appendix
Slide 31: 1H FY22 Naspers Summary Financials
1H FY22 Naspers Summary Financials Summary financials Revenue (US$bn)1 Trading profit (US$bn)1,2 Strong performance from Prosus - revenue growth and 1 improved profitability, while investing to build out ecosystems 32% (29%) 8% (9%) 17.2 2.7 2.9 13.0 2 Takealot growing strongly and break even 1H FY2
Slide 32: Group portfolio
Group portfolio 41% Local SA assets economic interest based on the cross-holding agreement between Naspers and Prosus 100% 100% Ecommerce Social & internet platforms Payments & 29% Classifieds Food Delivery Etail Edtech Ventures Fintech 99% 1 100% 94% 80% 14% 24% 27% 100% 100% 62% 2 42% 23% 15% 39%
Slide 33: Glossary
Glossary 1P: First party M&A: Mergers and acquisitions 3P: Third Party MAU: Monthly Active Users CAGR: Cumulative Annualised Growth Rate NAV: Net Asset Value ESG: Environmental, Social and Governance P&S: Pay and Ship FCF: Free cash flow p.p: Percentage points GDP: Gross Domestic Product PPP: Purcha
Slide 34: If you require any further information, please visit our website
If you require any further information, please visit our website www.prosus.com or alternatively email Eoin Ryan (Head of Investor Relations) at InvestorRelations@prosus.com