Slide 1: Financial Results
Financial Results For the six months ended 30 September 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: Group Update
Group Update Ervin Tu
Slide 4: We are making progress quickly
We are making progress quickly Profitable growth bringing our profitability ambition forward to H2 FY24 Ahead of expectation Open-ended share repurchase program while the discount remains elevated On-track Simplified the Group’s structure while maintaining the current economic interest split Complet
Slide 5: We are focused on maximising shareholder value
We are focused on maximising shareholder value Value creation will be driven by execution across our key commitments to shareholders Smartly Managing 1 2 3 the Numerator Improving Effective Tencent growth operations capital allocation & profitability & returns Systematically Share repurchase program
Slide 6: Our operating businesses are strengthening
Our operating businesses are strengthening Significant trading margin improvement across the businesses and peer leading growth Food Payments Classifieds Edtech Etail Delivery & Fintech 17% 32%1 32% 11% 4% YoY Revenue growth YoY Revenue growth YoY Revenue growth YoY Revenue growth YoY Revenue growth
Slide 7: Strong growth with accelerating profitability
Strong growth with accelerating profitability Consolidated Ecommerce revenue ~3X rate of our peers … with meaningful acceleration in profitability H1 FY24 Ecommerce revenue growth (%)1 Trading losses (US$’m)1,2 24% growth excl. Etail, (36) compared to peer average of 14% (157) $121m improvement (256
Slide 8: We are focused on improving returns …
We are focused on improving returns … Significant fall in IRR Returns weighed down by a few large underperformers NAV (US$bn) and IRR (%)1 iFood 35 Food of Ecommerce portfolio Swiggy 7 Delivery Hero -29 OLX Europe 27 Classifieds OLX Autos -52 18% IRR OLX Brazil 10 EMPG 1 IRR by entity (H1 FY24)3 let
Slide 9: … leveraging insights gained to adapt & improve our approach
… leveraging insights gained to adapt & improve our approach We are refining our investment approach and portfolio management with lessons learned Pursue a more balanced perspective on growth & profit trajectory Ecommerce portfolio racing Invest only where a clear path to profitability can be seen t
Slide 10: Expect smart and disciplined capital allocation
Expect smart and disciplined capital allocation We seek to allocate capital across 3 dimensions We seek to allocate capital to generate the greatest returns over three main channels 1 2 3 P&L Invest Return Operating outlook is strong We are actively exploring We will continue to return value across
Slide 11: Expect the repurchase programme to continue creating value
Expect the repurchase programme to continue creating value While we work to improve the NAV, we are dramatically shrinking the free float $25bn 514m 17% 7% NAV Value created1 Prosus & Naspers of Prosus accretion shares acquired2 free-float per share3 repurchased3 … which will continue to compound va
Slide 12: Expect more progress on our sustainability journey
Expect more progress on our sustainability journey SBTi verified our science-based climate targets Corporate Supply chain Scope 1 emissions 2 emissions 3 Investments1 100% Scope 1 and 2 GHG 30% reduction of air travel 50% of portfolio2 sets a emissions reduction by emissions by science-based target
Slide 13: Financial Update
Financial Update Basil Sgourdos
Slide 14: H1 FY24 Financial Highlights
H1 FY24 Financial Highlights We are ahead of our H1 FY25 profitability target Financial Summary Trading profit (TP) improved $220m YoY. We are already profitable on an EBITDA basis, and now expect to be profitable on a TP basis for H2 FY24 H1 FY23 H2 FY23 H1 FY24 6X Improvement in Free Cash Flow Con
Slide 15: We are bringing our profitability ambition forward to H2 FY24 …
We are bringing our profitability ambition forward to H2 FY24 … Significant improvement in profitability, even as we continue to invest in high conviction growth areas Consolidated Ecommerce trading losses (US$’m)1 10 pp margin improvement YoY (11) (47) (36) (149) (157) (221) (256) We are targeting
Slide 16: … while continuing to deliver peer-leading revenue growth
… while continuing to deliver peer-leading revenue growth We have built businesses with sustainable revenue platforms for long-term growth H1 FY24 Ecommerce consolidated revenue growth by segments (%)1 Peers Prosus 24% 32% 32% H1 FY24 Ecommerce growth excl. Etail 19% 17% 16% 12% 11% 6% 6% 4% 2% 1% E
Slide 17: iFood is profitable and continues to drive healthy growth
iFood is profitable and continues to drive healthy growth Consolidated Food Delivery iFood: Healthy growth and profit improvement2 (US$’m) Core Restaurant Business Profitable Margin improvement from New Initiatives3 17% YoY revenue growth1 1% (17%)2 Revenue (US$’m) 606 610 21% (19%) 57 69 H1 FY23 H1
Slide 18: Classifieds grew well ahead of peers, moving to industry level profits
Classifieds grew well ahead of peers, moving to industry level profits Core Classifieds drives peer leading profitable growth OLX Autos losses wind-down Consolidated Classifieds revenue & trading profit from OLX Autos trading losses included in discontinued operations continuing operations1 (US$’m)
Slide 19: PayU significantly improves profitability
PayU significantly improves profitability Consolidated Payments & Fintech Strong growth and profit improvement in both PSP and new initiatives (US$’m) Sustained Core Payments Growth Margin improvement from New Initiatives2 32% YoY revenue growth1 21% (34%) Revenue (US$’m) 440 16% (18%) 363 497 49 57
Slide 20: Edtech is evolving as it processes the impact of GenAI
Edtech is evolving as it processes the impact of GenAI We are evolving our products to leverage new technology and mitigate the impact on trading profit Consolidated Edtech - Stack Overflow and GoodHabitz (US$’m) H1 FY23 H1 FY24 Revenue grew 7% for the year. 11% Stack Overflow for Teams ARR YoY reve
Slide 21: eMAG Romania profitable and well positioned in its market
eMAG Romania profitable and well positioned in its market Consolidated Etail Romania delivered profitable growth - other businesses will follow2 (US$’m) New initiatives improve Romania returns to growth Challenges in other regions3 margin3 4% YoY revenue growth1 12% (7%) Revenue (US$’m) -2% (-8%) 49
Slide 22: Profitability drives meaningful FCF improvement
Profitability drives meaningful FCF improvement Free cash flow reflects improved profitability across our portfolio and increased dividends from Tencent Incremental FCF from continuing operations, YoY (US$’m)1 Free cash flow (excl. Tencent dividend) (US$’m) 6X Improvement YoY (33) (23) (149) 187 68
Slide 23: Core HE nearly doubles driven by improved profitability
Core HE nearly doubles driven by improved profitability Incremental Core HE1 from continuing operations, YoY (US$’m) 96% on a per share basis 85% (118%) 238 187 352 145 2 012 1774 1 090 1090 H1 FY23 Reduced losses from Reduced losses from other Increased contribution Other, predominantly H1 FY24 con
Slide 24: Strong and liquid balance sheet with increased cash dividends
Strong and liquid balance sheet with increased cash dividends We will manage our balance sheet to an Investment Grade rating 20% increase in dividends to HoldCo Net debt1 of US$18m (US$m) at 30 September 2023 (US$bn) Investment Grade BBB (S&P) / Baa3 (Moody’s) 20% 840 11.8% LTV 82 Based on gross deb
Slide 25: Closing remarks
Closing remarks Ervin Tu
Slide 26: We are committed to maximising shareholder value, through …
We are committed to maximising shareholder value, through … 1 Achieving profitable growth ahead of our previous ambition 2 Continuing the open-ended share repurchases creating value daily and amplifying returns 3 Adopting learnings to deploy capital more effectively for great returns 4 More active p
Slide 27: Appendix
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & maturity profile Appendix 4. Summary Group Portfolio 5. Glossary
Slide 28: Continued healthy Ecommerce growth …
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Continued healthy Ecommerce growth … Ecommerce revenue from continuing operations ($’bn) Total Ecommerce Economic Interest Consolidated Revenue Associat
Slide 29: … with a significant improvement in profitability
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary … with a significant improvement in profitability Ecommerce trading profit from continuing operations ($’m) Total Ecommerce Economic Interest Organic in
Slide 30: Group Consolidated Results
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Group Consolidated Results Consolidated Segmental Results from continuing operations Revenue Adjusted EBITDA Trading profit / (loss) YoY YoY Margin YoY
Slide 31: Proportionate Results from Associates and Joint Ventures
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Proportionate Results from Associates and Joint Ventures Associates and Joint Venture Proportionate Results1 Revenue Adjusted EBITDA Trading profit / (l
Slide 32: Group Economic Interest Results
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Group Economic Interest Results Economic Interest Results from continuing operations1 Revenue Adjusted EBITDA Trading profit / (loss) YoY % YoY Margin Y
Slide 33: Tencent’s high quality growth model improves profitability
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Tencent’s high quality growth model improves profitability Tencent grew revenue 10% with a 36% profit improvement YoY for the 9 months ended 30 Septembe
Slide 34: Food and Classifieds minority investments
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Food and Classifieds minority investments Food Delivery Associates & Joint Ventures1,2 Classifieds Associates & Joint Ventures1 2 (US$’m) (US$’m) 41% (2
Slide 35: Payments and Fintech and Edtech minority investments
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Payments and Fintech and Edtech minority investments Payments and Fintech Associates & Joint Ventures1 Edtech Associates & Joint Ventures1,2 2 (US$’m) (
Slide 36: Strong debt metrics with long-dated bond maturities
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Strong debt metrics with long-dated bond maturities Debt metrics Bond maturity profile (bn) LTM LTM US$’m 5 Years 10 Years 15 Years Over 20 Years Sep 22
Slide 37: Group portfolio companies
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Group portfolio companies 43% Local SA assets 100% 100% Social & internet Ecommerce platforms 25% Payments & Classifieds Food Delivery Etail Edtech Vent
Slide 38: Glossary
1. H1 FY24 Group Results 2. Results of Associates and Joint Ventures 3. Debt metrics & bond maturity profile 4. Summary Group Portfolio 5. Glossary Glossary Consolidated Results: Results of subsidiaries only, companies which the Group controls. Economic Interest: A non-IFRS measure representing the
Slide 39: For further information
For further information: Visit our website: www.prosus.com or www.naspers.com Email: InvestorRelations@prosus.com 39