Financial Results Presentation For the year ended 31 March 2014 1 - - PowerPoint PPT Presentation

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Financial Results Presentation

For the year ended 31 March 2014

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Important information

This presentation 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”, “endeavour” and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. While these forward-looking statements represent our judgments and future expectations, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These include key factors that could adversely affect our businesses and financial performance. We are not under any obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or

• therwise. Investors are cautioned not to place undue reliance on any forward-looking

statements contained herein.

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Overview

Financials Internet Outlook Appendix Pay-TV

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Print

1915 –

PayTV

1985 –

Internet

1997 –

Mobile

2010 –

Transformation at our core

1 > 50 > 80

Naspers countries

5

Fast changing landscape provides rare opportunities

1 2 3 4

Mobile is transforming the internet, particularly in our markets Our internet focus markets are scaling much faster than average Etail and classifieds are reshaping ecommerce New innovations are emerging outside developed markets

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41

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76 58 384 52 65 99 218 81 52 106 177 616 56 69 101 260 Russia Indonesia Brazil India China United Kingdom Germany Japan United States

2009 2013

Number of internet users (m); 2009 – 2013 Growth (%) Naspers focus markets sample

Source: IDC, Naspers

+60% +205% +33% +206% +95% +8% +6% +2% +19%

Mobile transforming internet in our markets

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3 9 10 22 24 26 32 34 34 38 71 Japan W EU US LatAm CE EU Asia ex- Japan China Russia Brazil MEA Turkey India

Focus internet markets scaling faster than average

Source: IDC, Naspers

Growth in internet buyers, 2009 – 2013 CAGR (%) Naspers focus markets sample

77

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Etail and classifieds reshaping ecommerce

Source: IDC, Naspers

66 139 140 194 Total ecommerce Total classifieds Etail Mobile classifieds

India: 2009 – 2013 (GMV growth %)

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Mobile payments: Solving unique local problems. Forty percent of Kenya’s GDP

• n mobile

Mobile messaging: Developing new revenue streams from micropayments LTE/4G: World’s first next generation phones & technology Wearable tech: Developing gesture controlled devices for all possible uses WeChat: Transforming social communication, entertainment & ecommerce Redbus: Aggregating & taking Indian transport mobile QR codes: First developed in Asia, allows easy offline to online engagement & shopping

New innovations emerging outside the US

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Extended classifieds aggressively, prioritising mobile Continued rapid etail expansion Tencent transforming Weixin/WeChat to a broad platform Scaled payments, travel, mobile services Expanded Pay-TV distribution platforms

FY14 in review

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Financials

Internet Outlook Appendix Pay-TV Overview

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22.16 21.81

Mar 13 Mar 14 Revenue (ZARbn) Core HEPS (ZAR)

49.9 62.7 3.85 4.25

DPS (ZAR)

8.5 8.6

Core headline earnings (ZARbn)

FY14: Financial synopsis

26% 1%

• 2%

10%

13 5,295 5,927 6,379 7,559 8,520 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

Pay-TV profitability (ZARm)*

6,020 9,838 12,254 15,479 19,194 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13

Tencent profitability (RMBm)*

2,152 3,628 8,381 11,535 15,087 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13

EBITDA (RURm)

Mail.ru profitability (RURm)*

CAGR +13%

13%

* To conform with publicly disclosed data, profitability for pay-TV reflects trading profit, for Tencent it is operating profit and for Mail.ru it refers to EBITDA.

Strong performance by established businesses

24% 31%

CAGR +34% CAGR +63%

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3,085 4,218 6,643 12,386 20,355 (107) (207) (1,238) (2,337) (5,329) (6,000) – 6,000 12,000 18,000 24,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Trading profit/(losses)

Ecommerce revenue and trading profit/(losses) (ZARm)

64%

Pursuing major new growth opportunities

CAGR +60%

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7,656 2,379 915 95 4,267 Mar 13 Internet Pay-TV Print Mar 14

Incremental development spend by segment, YoY (ZARm) 73% >100% 79% 86% Focused on ecommerce expansion Increased investment in brand advertising Improved talent and execution capacity Continued to scale etail businesses More than doubled investment in classifieds

Internet

ZAR1,327m invested in DTT Additional R485m spent on:

• online and mobile technologies
• decoder development

Pay-TV Ongoing investment

Aim is to build new revenue opportunities Funded by internal sources

Additional development captures more opportunities

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Strong growth across all platforms Some uplift from change in business mix Ecommerce revenue +64% YoY Tencent revenue +67% YoY Mail.ru revenue +44% YoY

Internet

Benefited from :

• 20% increase in subscribers
• 5% increase in subscription rates in SA

Pay-TV

FY14 revenue by business segment*

57,018 36,271 11,692

Internet (54%) Pay TV (35%) Print (11%)

Tough year throughout Media24 +1% YoY Abril -3% YoY

Print media

22,431 6,014 (240) 76,776

Mar 13 Internet Pay-TV Print Mar 14

Incremental revenue by segment, YoY* (ZARm)

104,981

65% 20% 37%

• 2%

* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated

Revenue* (ZARm)

37,251 45,108 56,522 76,776 104,981

• 35,000

70,000 105,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

Internet largest revenue growth driver and segment

CAGR 30%

Mar 13 Internet Pay-TV Print Mar 14

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Mar 13 ZARm Mar 14 ZARm Revenue* 76,776 104,981 Less: Associates and joint ventures (26,907) (42,253) Consolidated revenue 49,869 62,728 Trading profit 5,912 3,906 Trading margin 12% 6% Net finance costs (1,310) (2,127) Share of equity accounted results 8,778 10,835 Impairments (2,822) (2,774) Taxation (2,533) (2,895) Net profit 6,748 6,529 Core headline earnings 8,533 8,616 Core headline EPS (ZAR) 22.16 21.81 98% increase in net interest on loans due to:

• Higher debt levels to fund acquisitions
• Negative effect of currency translation

Net finance cost Income from associates

Includes ZAR2.9bn (FY13 R2.6bn) book profit from:

• Mail.ru’s sales of shares in Facebook and Qiwi
• Tencent’s merger of ecommerce operations with

JD.com and sale of interest in China Vision R1.1bn relates to flash sales fashion businesses Abril fully impaired by a further R1.2bn

Impairments

* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated

Currency impact

Revenue* up 22% in constant US$ rates

Trading margin

Decline due to step-up in development spend

Summarised consolidated income statement

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Mar 13 ZARm Mar 14 ZARm Operating cash flow 8,577 7,376 Capex (2,743) (4,442) Finance leases (585) (805) Tax (2,670) (3,319) Investment income 1,103 841 Free cash flow (FCF) 3,683 (349) Pay-TV ZAR3.7bn (mainly DTT) Ecommerce ZAR447m Print ZAR473m Net of proceeds on sale of assets of ZAR197m

Capex

Impacted by new satellite lease for MCSA

Finance leases

Increase due to higher profits in SA

Tax

Includes ZAR793m dividend from Tencent

Investment income

Expansion of DTT and development spend lowers FCF

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Mar 14 ZARm Debt: (offshore US$2.6bn) (27,990) Cash: (South Africa R5bn) 12,583 Closing net debt (15,407) Interest cover 10x US$465m of debt-funded acquisitions Some currency impact on translation

Increase

Excludes transponder leases of ZAR7.3bn, considered to be an operating cost

Net debt Gearing 23%

Balance sheet remains sound

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Outlook Appendix Pay-TV Overview

Internet

Financials

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Large global internet footprint*

* Only includes country of domicile for associates, not their entire footprint

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1 2 3 4 5 6 Alibaba Amazon eBay Naspers Mercadolibre JD.com Rakuten Rocket Internet 1Q'13 1Q'14

• 1%
• 2%

44% 7% 38%

• 17%

21% 24%

Source: ComScore, Naspers

Monthly average desktop visits in billions, Y/Y growth % (excl. payments-related properties)

Naspers has a substantial ecommerce presence

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Leadership positions in all key markets Significantly strengthened talent pool Growth accelerating Competition remains strong Mobile on all platforms central to our plan

Operational

Development spend accelerated to R5.6bn

Financial

ZARm Mar 13 Mar 14 % Change Revenue 12,386 20,355 64% Trading profit (2,338) (5,329) >-100% Revenue: YoY growth by type Expanded footprint and ambition level in classifieds Organic and acquisitive growth in etail Consolidation of payments and online comparison shopping (OCS) into single business units Strong and improving margins for marketplaces and comparison shopping

Strategic

103% 84% 71% 35% 32% 24% 0% 40% 80% 120% Etail Classifieds Online services OCS Payments Marketplaces

Ecommerce: summary

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Growth ahead of competitors in most markets Stepping up investments to capitalise on momentum and broaden footprint Continuing local-global orientation: rebranded local sites to OLX in 9 markets

Strategic

Improved talent and execution Investments in technology, especially mobile Aggressive local marketing

Operational

Total page views: YoY growth rates by region*

136 429 250 500 Mar 13 Mar 14

Daily page views (m)*

215%

* Select criteria as measured for the month of March, not adjusted for acquisitions and disposals and reflecting associates on a proportionate basis

10.2 25.3

• 10

20 30 Mar 13 Mar 14

148%

Daily visits (m)*

Financial

R3.7bn investment in organic growth initiatives, up 126% YoY Monetisation in increasing number of countries

230% 165% 133% 95% 0% 50% 100% 150% 200% 250% Latin America India & SE Asia Africa & Middle East Europe

Ecommerce: classifieds

25 Jul Aug Sep Oct Nov Dec Jan Feb Mar Jul Aug Sep Oct Nov Dec Jan Feb Mar

212%

Sources: Google, Company data

Mobile net new listings (NNL) Brand awareness (Google)

Bomnegocio Jan ‘12 May ‘14 2013 2014 OLX 2013 2014

Brazil

Mobile net new listings (NNL) Brand awareness (Google)

India

Jan ‘12 May ‘14 Quikr OLX

Strong traction in key markets

20 40 60 80 100 20 40 60 80 100

601%

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Acceleration of organic growth First party base complemented with marketplaces Rapid category and footprint expansion

Strategic

62% of revenue growth M&A driven Margins typically low, but negative working capital cycle produces cash

Financial

Global segment approach to etail Investment in fulfilment and distribution capacity Increasingly shaping retail calendar

Operational

Europe (73%) India & SE Asia (16%) Africa & Middle East (11%)

GMV by region

*Excludes marketplaces, OCS and online services

5,283 10,705

• 4,000

8,000 12,000 Mar 13 Mar 14

103% Revenue (ZARm)

Ecommerce: etail*

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Value-added services (75%) Ecommerce transactions (16%) Advertising and other (9%)

RMBm* Dec 12 Dec 13 % Change Revenue 43,894 60,437 38% Operating profit 15,479 19,194 24% Operating margin 35% 32%

* Reflects 100% of Jan-Dec 2013 results available on www.tencent.com, FY14 ZAR/RMB 1.66 (1.362)

Revenue mix FY14* 396m combined monthly active WeChat and Weixin user accounts (+87% YoY) 848m monthly active IM user accounts (+3% YoY) 644m monthly active Qzone user accounts (+5% YoY)

Q1 2014 statistics

Further solidified leadership in online games Strategic partnership with Sogou 17.6% equity holding in JD.com Competition intensifying Weixin re-shaping the mobile consumer landscape

Operations

Solid growth in revenues and profits Good growth in performance-based social advertising, as well as online video advertising

Financials

Listed internet:

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Community IVAS (32%) Display advertising (20%) MMO Games (24%) Contextual advertising (14%) Other (10%)

Listed internet:

RURm* Dec 12 Dec 13 % Change Revenue 21,151 27,404 30% EBITDA 11,535 15,087 31% EBITDA margin 55% 55%

*Reflects 100% of Mail.ru Group’s FY13 aggregate segment performance as reported. For IFRS results with full disclosure refer to www.corp.mail.ru; FY14 ZAR/RUR 0.31 (0.27)

Revenue mix FY14* Online games and IVAS performed well Warface gaining traction in users and revenues On-going user migration to mobile Contextual advertising strong

Operations

One-off gains after selling Facebook and Qiwi shares Launched My.com in US Increased stake in VKontakte from 40% to 52%

Other Q1 2014 statistics

59m total monthly users of Mail.ru portal 7.6m monthly paying users on platform

Financial

Good results across all major segments Net profit up 36% YoY

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Outlook Appendix Overview Financials

Pay-TV

Internet

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• 1. Accelerated investment in local content
• 3. Investment in DTT to bring payTV to the mass market
• 2. Enhanced product offering and improved services

Pay-TV: strategy

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1.3m net additions YoY

• Compact accounted for 43% of growth
• Premium stable
• 816,925 DTT subscribers at 31 Mar

PVR base increased 15% YoY to 1.1m BoxOffice averaging 529,000 movie rentals p.m.

Subscribers

Introduced new low cost bouquets Launched Explora PVR with expanded hard drive Expanded BoxOffice GOtv (DTT) continued roll-out Regulatory and competition intensifying

Operations

Margin pressure due to

• investment in local content
• higher fx rates
• DTT costs (including inventory build-up)

Irdeto returned to profitability

Financials

2,852 3,489 3,981 4,451 5,008 1,099 1,439 1,630 2,288 3,051 – 2,000 4,000 6,000 8,000 10,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 South Africa Sub-Saharan Africa

Pay-TV subscriber homes („000)

18,810 22,259 25,259 30,257 36,271 5,295 5,927 6,379 7,559 8,520 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Trading profit 28% 27% 25% 25% 23% Margin

Pay-TV financials (ZARm)

Pay-TV: now servicing 8m households

20%

CAGR 18%

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Sep 13 Dec 14

Analogue switch-off (ASOs) starting to gain pace

Mar 14

Now in 11 countries Covering 112 Cities

2 23 151 377 547 817

• 300

600 900 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14

DTT Subscribers („000)

Digital Terrestrial Television (DTT)

Jun 15 Jun 15 Sep 13 Dec 14 Mar 14

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Pay-TV Appendix Overview Financials

Outlook

Internet

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Ecommerce

• Step-up growth in classifieds
• Accelerate growth in etail, including footprint expansion
• Push further on new growth areas (online services)

FY15 Financials

• Revenue growth to advance further
• Development spend at higher levels
• Leverage cash from established businesses to fund growth

Pay-TV

• Capture growth opportunity in DTT across Africa
• Invest aggressively in online content delivery options
• Deal with competitive and regulatory challenges

FY15 Outlook: growth and business model expansion

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Pay-TV Overview Financials Internet Outlook

Appendix

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Mar 13 ZARm Mar 14 ZARm Mar 13 US$m Mar 14 US$m Revenue 49,869 62,737 5,830 6,157 Operating profit 4,099 2,018 479 198 Finance costs (1,310) (2,127) (153) (209) Share of equity accounted results 8,778 10,835 1,026 1,064 Acquisitions and disposals (53) 751 (6) 74 Dilution profits (96) (852) (11) (84) Impairment of equity accounted investments (2,137) (1,201) (250) (118) Profit before taxation 9,281 9,424 1,096 925 Taxation (2,533) (2,895) (296) (284) Net profit 6,748 6,529 789 641 Attributable to: Naspers 6,047 5,751 707 565 Minorities 701 778 82 76

FY14 ZAR/US$ 10.19 (8.55)

Consolidated income statement – US$

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Mar 13 ZARm Mar 14 ZARm Headline earnings 6,630 5,981 Equity-settled share scheme charges 850 1,120 Deferred tax adjustments (195) 58 Amortisation of intangible assets 1,403 1,385 Business combination gains/(losses) 51 (9) Mail.ru special dividend received by Tencent (423)

• Prior year tax benefit

(191)

• Retention option expense

135 128 Fair value adjustments & currency translations 273 (47) Core headline earnings 8,533 8,616

Core headline earnings

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ZAR weakness positively impacted translation of offshore earnings Average Closing rate Currency (ZAR = 1FC) Mar 13 Mar 14 % change Mar 13 Mar 14 % change US dollar 8.55 10.19

• 19

9.24 10.53

• 14

Euro 11.03 13.69

• 24

11.84 14.51

• 23

Chinese Yuan/Renminbi 1.36 1.66

• 22

1.49 1.69

• 13

Brazilian Real 4.24 4.50

• 10

4.57 4.67 2 Polish Zloty 2.65 3.25

• 28

2.83 3.40

• 15

Russian Ruble 0.27 0.31

• 11

0.30 0.30

• Revenue growth YoY *

Trading profit growth YoY *

104,981 93,501 50,000 70,000 90,000 110,000 Reported Constant Currency +37% +22% 15,613 14,181 4,000 8,000 12,000 16,000 Reported Constant Currency +9%

• 1%

Core earnings growth YoY

8,616 7,518

• 3,000

6,000 9,000 Reported Constant Currency +1%

• 12%

* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated

Impact of currency movements

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Pay-TV: US$350m and EUR6m (programming rights and leases) Print: EUR56m and US$11m (paper and ink)

Annualised net foreign input costs

Pay-TV: long-term commitments, cover up to 100% of rolling 12 - 24 month net inputs Print: short-term commitments, cover maximum 12 months rolling input costs Bond/RCF: hedge interest expense to a maximum of 24 months

Hedging strategy

Almost all FEC’s qualify for hedge accounting

FEC’s

US$ FX Cover US$m US$ rate FY15 459 10.44 FY16 81 11.74 EUR FX Cover EURm EUR rate FY15 41 14.83

FX exposure: hedging to manage risk

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11,480 12,772 3,953 76,776 Mar 13 Exchange rate impact Organic growth Acquisitive growth Mar 14 104,981

Incremental revenue YoY* (ZARm)

* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated

17% growth from existing operations

• Tencent (+36%), Mail.ru (+29%) in local

currency

• Ecommerce +14% YoY
• Pay-TV revenues +12% YoY

Organic growth

15% revenue uplift from weaker ZAR Devalued 22% vs. Rmb and 19% vs. US$

Exchange rate

Mainly driven by new etail platforms such as eMag, Netretail, Souq and Flipkart

Acquisitive growth

37%

Components of revenue growth

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Mar 13 ZARm Mar 14 ZARm % Change Ecommerce 3,259 5,639 73% Pay-TV 897 1,812 >100% Print 111 205 85% Total 4,267 7,656 79%

27,998 33,085 39,486 49,869 62,728 1,240 1,535 2,823 4,267 7,656

Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Development spend

Revenue and Development spend (ZARm) FY14 split by business segment

5,639 1,812 205 Internet (74%) Pay-TV (24%) Print (2%)

As % of revenue*

4.4% 4.6% 7.1% 8.6% 0% 4% 8% 12% Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

* Measured as % of consolidated revenue as development spend does not include associate spending

Development spend breakdown

26% 79%

12.2%

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FY14 development spend by type

3,674 1,465 313 187

Classifieds (65%) eTail (26%) Payments (6%) Other (3%) 4,218 6,643 12,386 20,355 705 1,857 3,259 5,639

• 8,000

16,000 24,000 Mar 11 Mar 12 Mar 13 Mar 14

Revenue Development spend

Revenue and development spend (ZARm)

2,046 150 184 3,259

• 2,000

4,000 6,000 Mar 13 Classifieds e-Tail & other Payments Mar 14

Incremental development spend YoY (ZARm)

5,639

Ecommerce: development spend

64% 73%

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* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated

R12bn contribution by Tencent and Mail.ru Reduced by ecommerce loss of ZAR5.3bn Increased profitability from:

• Allegro marketplace
• Price comparison businesses

Internet

DTT roll-out continuing Accelerated investment in local content Positive contribution from Irdeto

Pay-TV

FY14 split by business segment*

6,638 8,520 606 Internet (42%) Pay TV (54%) Print (4%)

Declining advertising revenues SA profits up marginally

Print

15,613 475 (12) 961 (137) 14,326 Mar 13 Internet Pay-TV Print Corp Mar 14

Incremental trading profit by segment* (ZARm) 8% 13% 9%

• 18%
• 9%

Trading profit* (ZARm)

8,560 10,240 11,662 14,326 15,613

• 4,000

8,000 12,000 16,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

Trading profit trimmed by organic expansion

CAGR 16%

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10,157 (280) 10,835 (678) 11,115 Company results PPA adjustments IFRS results Other adjustments Core HEPS Contribution

Company PPA IFRS Other Core HEPS ZARm results adjustments results adjustments* contribution Tencent 9,849

• 9,849

(125) 9,724 Mail.ru 1,999 (115) 1,884 (973) 911 Abril (201) (140) (341) 231 (110) Other (532) (25) (557) 189 (368) TOTAL 11,115 (280) 10,835 (678) 10,157

* Headline and core earnings adjustments similar to Naspers methodology

Associates and joint ventures contribution to Core HEPS (ZARm)

Contribution by associates and joint ventures

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Mar 13 ZARm Mar 14 ZARm Interest (paid) (1,495) (2,466) Loans and overdrafts (1,044) (1,717) Transponder leases (231) (356) Other (220) (393) Interest received 443 606 Loans and call accounts 408 456 Other 35 150 Other finance costs, net (258) (267) FX translation adjustments (383) (344) BEE preference dividends 125 77 Total finance costs (1,310) (2,127) US$700m 7-year bond issued July 2010:

• 6.375% coupon

US$1bn 7-year bond issued July 2013:

• 6% coupon

5-year US$2.25bn RCF extended to Oct 2018:

• US$800m drawn at Mar 2014
• US$800m fixed at 4.3% all-in until March 2016
• Floating interest of 1.75% + 1 month LIBOR

Debt

Increased 98% YoY from ZAR636m to ZAR1.3bn

Net interest paid on loans

SSA: 15-yr lease effective Dec 2009

• Cost ~US$40m p.a.

SA: 15-yr agreement effective Sep 2012

• Cost ~US$42m p.a.

Transponders

Net finance costs

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Mar 13 ZARm Mar 14 ZARm Profit before tax 9,281 9,424 Add back: Development spend 4,267 7,656 Equity results (including impairments) (6,944) (9,634) Other gains and losses 831 1,320 Acquisition gains 143 101 FX gains and losses 373 344 BEE preference dividends (125) (77) Adjusted profit before tax 7,826 9,134 Tax charge (2,533) (2,895) Effective rate 32% 32%

Taxation analysis

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Mar 13 ZARm Mar 14 ZARm Land, buildings & plant 338 767 Transmission equipment 1,468 2,477 Computer, software & network equipment 926 1,023 Other (including vehicles, furniture) 35 372 Capital expenditure 2,767 4,639 Capex/Revenue 6% 7% FY14 split by business

Capital expenditure

Internet (10%) Pay TV (80%) Print (10%)

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Current assets Mar 13 ZARm Mar 14 ZARm Inventory 1,936 2,882 Programme and film rights 1,868 1,979 Trade receivables 4,042 4,849 Other receivables 3,149 4,807 Derivative financial assets 449 209 Cash and deposits 15,653 13,664 Assets held for sale 46

• Total

27,143 28,390 Current liabilities Mar 13 ZARm Mar 14 ZARm Current portion of long-term debt 2,296 2,628 Provisions 295 260 Trade payable 4,107 5,318 Accrued expenses and other 9,696 12,912 Tax payable 237 809 Derivative financial liabilities 180 840 Bank overdraft and call loans 1,423 1,081 Total 18,234 23,848

Current assets and liabilities

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Ongoing M&A activity

Total acquisition spend (US$m)

517 754 260 634 Other

• 200

400 600 800 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 465

50

Capital expenditure (ZARm) Programming cost (ZARm) Free cash flow (ZARm)

634 977 683 1,128 1,320

• 500

1,000 1,500 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

Net additions („000) Digital subscriber mix

29% 35% 37% 37% 34% 28% Mar 13 Mar 14

FY14 revenue split

Subscription (80%) Advertising (7%) Hardware sales (6%) Online/Broadband (4%) Other (3%)

Premium Compact Lower-end

Pay-TV: operational dynamics

4,304 5,497 6,037 6,935

– 2,000 4,000 6,000 8,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 18%

8,213 3,554 3,239 4,123 4,486 3,010

Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 33%

656 1,159 1,187 2,030 3,720

– 1,000 2,000 3,000 4,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 83% CAGR 18% CAGR 54%

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Print media:

ZARm* Mar 13 Mar 14 % Change Revenue 7,790 8,171 5% Trading profit 546 519

• 5%

Trading margin 7% 6%

*Data for FY14 reflect Media24’s stand-alone results available on www.media24.com

Advertising (31%) Printing (29%) Circulation (19%) Books (9%) Other (7%) Distribution (5%)

Revenue mix FY14 Retained leadership position in newspapers and magazines Expanded local newspaper footprint Paarl Media diversified into new markets and increased productivity On the Dot expanded its warehousing and online fulfilment business 24.com remained leading digital publisher in Africa Spree established a leading position in online fashion McGregor BFA acquired I-Net Bridge to create strong position in financial data services

Operations

Capex trend

684 348 360 302 428

• 400

800 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14

Printing revenue +6%, book publishing +10% YoY Advertising revenue -3%, circulation -2% YoY Good performances from Paarl Media, magazines and schoolbook publishing

Financials

52

Print media:

BRLm Dec 12 Dec 13 % Change Revenue 2,975 2,733

• 8%

Trading profit 101 51

• 50%

*Data reflects 100% of results Jan – Dec 2013; FY14 ZAR/BRL 4.50 (4.24)

Advertising revenues remained under pressure as economy stalls, but maintained market share Single copy circulation declined in line with market Restructuring lagging, but comprehensive cost-cutting initiatives are being implemented

Operations

Tough trading conditions hampered performance ZAR110m loss included in core headline earnings Impaired investment by R1,174m

Financials

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Naspers group structure

54 54

ARPU: Average Revenue per User B2C: Business to Consumer C2C: Consumer to Consumer DPS: Dividend per Share DTH: Direct-to-Home Television DTT: Digital Terrestrial Television EPS: Earnings per Share FCF: Free Cash Flow FEC: Forward Exchange Contract GEM: Global Emerging Markets GMV: Gross Merchandise Value HEPS: Headline Earnings per Share HD: High definition IM: Instant Messaging MP: Marketplaces OCS: Online comparison shopping PCU: Peak Concurrent Users PVR: Personal video recorder SNS: Social Network Service SSA: Sub-Saharan Africa

Glossary of terms

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Meloy Horn Office: +27 11 289 3320 Mobile: +27 82 7727 123 E-mail: InvestorRelations@naspers.com Website: www.naspers.com

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Investor Relations