Slide 1: Financial Results
Financial Results Year ended March 31st 2020 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 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. Financials Agenda 3. Outlook
Slide 4: Business Update
Business Update Bob van Dijk 3
Slide 5: FY20 was a transformational year
FY20 was a transformational year Operational Highlights • Prosus ended the year in a position of financial strength • Strong financial performance across all segments • Businesses are scaling and delivered strong growth • Covid-19 having some impact near-term but will provide structural tailwinds in
Slide 6: Key operational and strategic highlights
Key operational and strategic highlights Robust growth in Strategic M&A and Strong financial performance core segments corporate action +23% +22% 112k Listing Prosus, created US$16bn of value on the day YoY Group Revenue growth1 Paying listers #cars sold4 Classifieds +33% Deals worth US$1.3bn, sprea
Slide 7: A focused and proven strategy building long-term value
A focused and proven strategy building long-term value Create value by building and investing in substantial CORE SEGMENTS GOAL businesses with sustainable high growth Classifieds …where we can FOCUS Building global …addressing …in high build sustainable AREAS technology leaders big social needs gro
Slide 8: A disciplined and focused approach to capital allocation
A disciplined and focused approach to capital allocation How we How allocatewe allocate capital capital What we have done Invest in core segments In FY20: We focus on select high potential segments that we understand deeply and they compete Invested US$1.3bn across our portfolio for capital Sourced
Slide 9: Classifieds: Strong growth, smart in-market consolidation and continued extension into transactions
Classifieds: Strong growth, smart in-market consolidation and continued extension into transactions Investing further into Transactions Continued momentum M&A to strengthen the business ecosystem to enhance and deepen in our core business the user experience +37% YoY Revenue growth1 Brazil +22% YoY
Slide 10: Food Delivery: Robust growth with investments showing returns and delivering accelerated unit economics
Food Delivery: Robust growth with investments showing returns and delivering accelerated unit economics Online food delivery growing Reinforced leadership as 1P driving growth and expanding strongly as penetration increases investments beginning to the market show real returns +76% +3X YoY growth in
Slide 11: Payments & Fintech: Strong growth with India providing opportunity
Payments & Fintech: Strong growth with India providing opportunity to expand into the broader financial ecosystem Unique regional footprint across PayU India transitioning from a Digitisation in India brings fast-growing markets for digital focus on local payments to broader substantial opportunitie
Slide 12: Ventures: Exploring new frontiers
Ventures: Exploring new frontiers Potential for major disruption of the future global Investing in new industries disrupted by tech education system • Invest in companies that will be the next wave of growth for Prosus US$10T 3% • Addressing big societal needs Market opportunity by 2030 Online penet
Slide 13: We continue to enhance our ESG activities, supporting the UN SDGs
We continue to enhance our ESG activities, supporting the UN SDGs Our approach Progress made in the last year Aligning to SDGs1 Environmental Group wide contributionn: • Carbon footprint - reported scope 1 and 2 • Offsetting carbon credits - partnership with Greenseat • Reducing waste and using recy
Slide 14: Investing in our people, partners and customers during the Covid-19 pandemic
Investing in our people, partners and customers during the Covid-19 pandemic to emerge more strongly Protect the health of our Support the Classifieds: employees and those around communities in which Supporting partners and them we operate customers • Listing duration, pricing and subscription adjus
Slide 15: Financial Update
Financial Update Basil Sgourdos 14
Slide 16: FY20 Financial Highlights: Strong finish to a strong year
FY20 Financial Highlights: Strong finish to a strong year Summary financials (US$’bn)1 1 Strong and accelerated ecommerce revenue growth of 33% Revenue2 Trading profit2 Improved profitability and cash generation, while investing to 17% (23%) 12% (16%) 2 grow the Food Delivery opportunity 18.3 21.5 3
Slide 17: Ecommerce growth accelerated year-over-year and 2H vs 1H
Ecommerce growth accelerated year-over-year and 2H vs 1H YoY Ecommerce revenue growth (%)1 1H vs 2H Ecommerce revenue growth (%)1 141% 1H20 2H20 69% 38% 38% eMAG’s sales 36% accelerated from 33% March as consumers shifted purchasing on-line 28% due to Covid-19 26% crisis 22% 20% 19% 13% FY19 FY20 Ec
Slide 18: Core Classifieds driving profitability while investing in transactions
Core Classifieds driving profitability while investing in transactions Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 Investment in Transactions 49% (37%) • Core classifieds continued trend of healthy growth with improved 1,281 profitability. Transactions contributed 31% of revenues, up from 12% in
Slide 19: Food Delivery: Strong growth, positive customer acquisition trends and investment in 1P
Food Delivery: Strong growth, positive customer acquisition trends and investment in 1P drive margin improvement in 2H Revenue (US$’m)1 Trading loss (US$’m)1 99% (105%) • Investing to transform all aspects of the supply chain from how food is sourced, to how it is prepared and ultimately consumed. 7
Slide 20: Core Payments profitable as the business continues to scale
Core Payments profitable as the business continues to scale Revenue (US$’m)1 Trading profit/(loss) (US$’m)1 19% (21%) Core Payments New initiatives & central costs 428 360 67 • Solid 21% YoY top-line growth driven by increased growth in transactions volume and value. 46 • Profitability in core PSP i
Slide 21: Profitable businesses contributed significantly to central cash flows
Profitable businesses contributed significantly to central cash flows Consolidated trading profit from profitable Dividends to HoldCo (US$m) ecommerce businesses (US$m)1 18% 10% (16%) 682 577 305 235 Classifieds 404 Tencent dividend 2 367 377 342 FY19 FY20 FY19 FY20 1 Numbers in brackets represent y
Slide 22: FCF reflects increased Food Delivery investment and listing transaction costs
FCF reflects increased Food Delivery investment and listing transaction costs Incremental FCF, YoY (US$’m)1 260 179 (102) (81) 85 (137) (338) 172 (88) 85 (11) FY19 Cash from Working capital Capex, Tax & FY20 Transaction costs² Shares purchased FY20 (excl. Food Delivery FY20 (excl. Food operations In
Slide 23: Strong liquid balance sheet with lower cost of debt
Strong liquid balance sheet with lower cost of debt Liquid financial position enabling investment to Successfully priced US$1.25bn 3.68% notes improve our businesses and add to our portfolio in January 2020 Net cash of US$4.5bn1 Bond maturity and liquidity potential (US$’bn) ✓ Ability to raise more
Slide 24: IRR impacted by Covid-19 in March
IRR impacted by Covid-19 in March All internet investments (incl Tencent) Current internet portfolio (ex Tencent) FY02 – FY20 (US$’bn)1,2,3 FY02 – FY20 (US$’bn)1,2 37% IRR -1% from 1H20 18% IRR -2% from 1H20 170 25 12 15 Total invested capital Market & analyst valuation Total invested capital Market
Slide 25: As of FY21 we will treat all SARs as cash settled
As of FY21 we will treat all SARs as cash settled The rationale for doing this No impact on cash Impact on Trading Profit FY20 SBC charge – cash vs equity settled (US$’m)1 • Two listed shares complicates settlement process Equity settled • For simplicity and added transparency On exercise the Group
Slide 26: Covid-19 Business Update
Covid-19 Business Update Prosus ended FY20 strongly and remains in a healthy and liquid financial position which will allow 1 us to invest through the downturn to improve our businesses and add to our portfolio Prosus prioritises its people, partners and customers throughout the pandemic, because it
Slide 27: Outlook
Outlook Bob van Dijk 26
Slide 28: Key takeaways and thoughts for the future
Key takeaways and thoughts for the future 1 The fundamentals of the group are strong, and we ended the year with momentum We focus on the long-term and believe our businesses will benefit from a further acceleration 2 of secular trends toward online ecommerce companies brought about by the pandemic
Slide 29: Appendix
Drosus Appendix
Slide 30: Naspers Summary of Financials
Naspers Summary of Financials Summary financials (US$’bn)1 1 Strong revenue growth and improved profitability from Prosus Revenue2 Trading profit2 17% (23%) 13% (17%) 2 Strong growth by Takealot with 5p.p margin improvement 19.0 22.1 3.4 3.7 3 Increased profitability by Media24, despite lower revenu
Slide 31: Group portfolio
Group portfolio Local SA assets 73% 96% 85% Ecommerce Social & internet platforms 31% Classifieds Payments & Fintech Food delivery Etail Ventures 100%1 99% 82% 80% 24% 28% 100% 99% 55%2 42% 15% 100%3 72% 21% 21% 80%4 89% 40% 44% 84% 99% 11% 79% 16% 19% 12% 21% 21% 20% Organogram depicts effective pe
Slide 32: Glossary
Glossary 1P: First party p.p: Percentage points CAGR: Cumulative average growth rate PSP: Payment service provider EBITDA: Earnings before interest tax, depreciation and amortisation RCF: Revolving credit facility ESG: Environmental, Social and Governance SAR: Share appreciation rights FCF: Free cas
Slide 33: 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