Slide 1: Financial Results
Financial Results For the six months ended September 2019 0
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. Words such as “believe”, “anticipate”, “intend”, “seek”, “will”, “plan”, “could”, “may”, “endeavor” and similar expressions are intended to identify
Slide 3: Agenda
1. Business Update 2. Financials Agenda 3. Closing Remarks
Slide 4: Business Update
Drosus Business Update Bob van Dijk
Slide 5: Highlights for the six months
Highlights for the six months Strong financial performance1: Revenue +20%, Trading profit +7%, Core HE +10% Improved performance across our core segments: Classifieds, Payments & Fintech, Food Delivery Accelerated growth and sustained leadership in Food Delivery Orders +110% YoY; GMV +81% YoY. Succe
Slide 6: We created the largest listed consumer internet company in Europe
We created the largest listed consumer internet company in Europe 100% Listed 26% free float on JSE on Euronext Amsterdam Holds 74% of Prosus All Naspers’ international internet assets Naspers remains committed to With a secondary, inward listing on South Africa and maintains its the JSE in South Af
Slide 7: Improved operational performance across all key segments
Improved operational performance across all key segments CLASSIFIEDS PAYMENTS & FINTECH FOOD DELIVERY Revenue (US$m)1 Average daily transactions (m)2 Orders (m)4 Ctx 35% 110% 48% (38%) 3.0 587 2.3 146 1H FY19 1H FY20 1H FY19 1H FY20 369 25 441 YTD Total payments value (TPV) (US$bn)3 GMV (US$bn)4 371
Slide 8: Strategic acquisitions and consolidation to drive future growth
Strategic acquisitions and consolidation to drive future growth 1H FY20 acquisitions/investments 1H FY20 consolidation M&A after Sep191 Announced: US$374m Closed: Other 1H FY20 1 Prosus made a cash offer to acquire the entire issued and to be issued ordinary share capital of Just Eat in October 2019
Slide 9: Proposed acquisition to strengthen Food Delivery portfolio
Proposed acquisition to strengthen Food Delivery portfolio Next Steps 00 Proposed cash offer (the “Offer”) for Just Eat of 710 pence per share - 1 £4.9bn 11 Nov 19 £4.9bn transaction value1 Prosus Offer Document 2 The offer presents a compelling proposition at a certain value 00 11 Dec 19 3 Accept
Slide 10: Financials
Drosus Financials Basil Sgourdos
Slide 11: Financial highlights
Financial highlights Summary financials1 1 Strong Ecommerce revenue growth Revenue (US$bn)2 Trading profit (US$bn)2 12% (20%) 5% (7%) 2 Core Classifieds and Payments & Fintech profitable 8.9 9.9 1.8 1.9 Increased investment to grow Food Delivery 1H FY19 1H FY20 1H FY19 1H FY20 3 opportunity Free cas
Slide 12: Strong revenue growth across the ecommerce portfolio
Strong revenue growth across the ecommerce portfolio Revenue growth by core segments (%)1 69% 38% 28% 20% 13% Ecommerce Food Delivery Classifieds Payments & Fintech Etail 1 Results reported on an economic-interest basis, i.e. equity-accounted investments are proportionately consolidated. Year-on-yea
Slide 13: Ecommerce revenue growth accelerated in Q2
Ecommerce revenue growth accelerated in Q2 Q1 Q2 ECOMMERCE 23% 32% CLASSIFIEDS PAYMENTS & FINTECH FOOD DELIVERY 31% 45% 19% 22% 48% 89% 1H: 38% 1H: 20% 1H: 69% Note: Results reported on an economic-interest basis, i.e. equity-accounted investments are proportionately consolidated, percentages repres
Slide 14: Core Classifieds driving profitability, investing in Ctx and tech backbone
Core Classifieds driving profitability, investing in Ctx and tech backbone Revenue (US$m)1 Trading profit/(loss) (US$m)1 Ctx Investment in Ctx Core Classifieds driving improved profitability even while investing to build out a global technology backbone and in convenient transactions to build deeper
Slide 15: Core Payments profitable, investing in expansion initiatives and credit
Core Payments profitable, investing in expansion initiatives and credit Revenue (US$m)1 Trading (loss)/profit (US$m)1 Core PSP, excluding new initiatives 360 Core profitability reinvested to scale and strengthen credit 294 offering in India and for geographical expansion initiatives 16% (20%) 199 17
Slide 16: Strategic investment across Food portfolio driving accelerated growth
Strategic investment across Food portfolio driving accelerated growth Revenue (US$m)1 Trading loss (US$m)1 Food Delivery has evolved beyond simply connecting restaurants and customers. We are investing to transform all aspects of the supply chain from how food is sourced, to how it is prepared and u
Slide 17: Profitable businesses contributed significantly to central cash flows
Profitable businesses contributed significantly to central cash flows Consolidated trading profit from profitable ecommerce businesses Sources of free cash inflow (US$m)2,3 (US$m)1,2 9% (16%) 17% 573 3 490 20 17 173 141 213 195 Other Payments & Fintech 377 332 Classifieds Tencent dividend 1H FY19 1H
Slide 18: FCF reflects increased Food Delivery investment and transactions costs
FCF reflects increased Food Delivery investment and transactions costs 135% Incremental FCF, YoY (US$m)1 145 241 (47) 96 82 96 96 (67) (12) 44 14 2 1H FY19 Cash from Working capital Investment Capex and 1H FY20 Transaction 1H FY20 (excl. Food Delivery 1H FY20 (excl. operations income leases costs tr
Slide 19: Strong balance sheet with financial flexibility
Strong balance sheet with financial flexibility Net cash of US$5.4bn Potential levers to realise our potential 3 247 £4.9bn 8 672 US$2.5bn 1 Cash Debt US$8.7bn In line with its pro-active debt management policy, the company is closely monitoring opportunities to refinance its outstanding Gross cash
Slide 20: Significant liquid asset base leading to low Loan to Value
Significant liquid asset base leading to low “Loan to Value” Bond and liquidity comparison Low LTV (US$m) Gross debt / Cash and listed assets Cash cushion Listed assets Cash and cushion listed assets cushion 2.7 times 40 times 43 times 2% Historically 128,741 137,413 between 2% - 4%1,2 Market value
Slide 21: Closing Remarks
Drosus Closing Remarks Bob van Dijk
Slide 22: Thoughts for the future…
Thoughts for the future… 1 Drive further scale and profitability in Classifieds, Payments & Fintech and Etail 2 Increase investment in Food Delivery to grow the market and our position within it 3 Invest wisely across our focus areas to ensure sustained long-term growth 4 Invest further in technolog
Slide 23: Appendix
Drosus Appendix
Slide 24: Group Portfolio
Group Portfolio 74% Local SA assets 96% 85% Ecommerce Social & internet platforms Classifieds Payments & Fintech Food delivery Travel Etail Ventures 31% 81% 5% 80% 24% 28% 100%1 99% 100% 22% 55%3 13% 100% 21% 22% 21% 80%2 21% 39% 44% 36% 99% 12% 12% 99% 17% 72% 12% 1 OLX owns 50% of operations in Br
Slide 25: Glossary
Glossary AI: Artificial intelligence M&A: Mergers and acquisitions Ctx: Convenient transitions ML: Machine learning Capex: Capital expenditure PSP: Payment service provider EBITDA: Earnings before interest tax, depreciation & amortisation TP: Trading profit/(loss) FCF: Free cash flow TPV: Total paym
Slide 26: Further information and investor relations contact
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