Financial results presentation For the six months ended 30 September - PowerPoint PPT Presentation

Financial results presentation For the six months ended 30 September 2017

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 otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein. 2

1. Operations 2. Financials Agenda 3. Outlook 4. Appendix

OPERATIONS

1H FY18 operational highlights Classifieds: strong traction across portfolio 1 2 B2C: local market-leadership positions, improving unit economics Payments: continue to scale organically and through M&A 3 4 Food delivery: strengthened presence in fast-growing segment 5 VE: solid performance by SA, stabilised business in SSA 5

Classifieds: strong traction across portfolio App MAU (m) * MULs (m)* 30% 21% 85.4 19.1 65.7 15.8 1H FY17 1H FY18 1H FY17 1H FY18 * Data reflects full year averages at 100% of controlled entities and a proportionate share of equity-accounted investments. 6

Classifieds: increased revenue/user & margin expansion OLX: revenue/internet user - monetisation countries EBITDA margins: expanding, but room to be best in class (OLX monetisation countries only)* 34% 66% 64% 1.45 1.08 60% 0.72 54% FY16 FY17 FY18E 52% # of Countries 10 12 14 40% Margin % 45% 45% 54% * Sources: Company filings, investor reports, EIU reports and Factset, FX rates converted based on year average. 7

Classifieds: Avito shows consistent growth Key growth metrics – Avg. 1H17 vs. 1H18 Buyers and sellers in apps (Apr 14 = 100) 62x 57x +16% # of Paying Listers +32% App MAUs Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 MULs +42% Revenue (RUBbn)* Adjusted EBITDA (RUBbn)* 44% 34% 6.8 11.7 6.2 11.3 4.7 8.4 6.7 3.3 2.2 4.3 FY14 FY15 FY16 9m FY16 9m FY17 FY14 FY15 FY16 9m FY16 9m FY17 * Financial information as per the Avito financial year ending December, which differs from the Naspers reporting period. Adjusted EBITDA reflects net profit plus depreciation and amortisation expenses, share-based compensation expense, finance costs (including fair value adjustments in respect of derivative under current office lease agreement) and income tax expense less finance income and expenses. 8

Classifieds: Poland exceeding expectations Key growth metrics – Avg. 1H17 vs. 1H18 Revenue split (PLNm) – (indexed) 50% MULs +24% App MAUs +38% # of Paying Listers +133% FY16 FY17 1H FY17 1H FY18 YoY growth in revenue (indexed) Revenue split (PLN) Real Estate +31% Advertising C2C Goods Vehicles +47% Jobs/Services Property Horiztonal +99% Cars 1H18 Note: Vehicles and real estate revenues include revenues from those categories on the OLX branded platform. 9

Classifieds: early monetisation in Brazil, plenty of runway Key Market Insights OLX Brazil revenue (BRLm) 4 th Largest Internet Base Globally 88% 140m users Top 10 Private Consumption Globally 1H FY17 1H FY18 OLX Brazil trading loss (BRLm) >US$1bn per annum 66% 1H FY17 1H FY18 Young, Mobile First Demographic 65% population < 40 yrs *Financials reflect 100% ownership, Naspers owns 50% of OLX Brazil Source: Euromonitor online database 10

Classifieds: letgo USA… USA now also overtook Offerup in mobile minutes Monthly Minutes Spent (Mobile App) Mobile monthly active users (Mobile MAUs) 120% 19% 19% 106% 81% Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Close5 Close5 5Miles 5Miles Letgo as % of OfferUp Letgo as % of OfferUp letgo OfferUp letgo Offerup Source: Leading third-party data provider Source: Leading third-party data provider 11

B2C etail: strong GMV growth and improving unit economics B2C etail* segment GMV (US$m) YoY growth in GMV (US$m) 40% eMAG 35% 1 047 Flipkart 43% Takealot 72% 746 B2C etail segment EBITDA as % of GMV 554 1H FY16 1H FY17 1H FY18 -9% -11% 1H FY16 1H FY17 1H FY18 -19% *GMV presented on an economic interest basis, i.e. equity-accounted investments are proportionately consolidated. We adjust historic data to reflect our shareholding as at 30 Sept 2017, for comparative purposes. 12

Payments: continuing to scale organically and through M&A Scaling rapidly Strong growth Select investments Average daily transactions (m) 86% (63%) • ~US$120m investment 1.8 • Provides AI-based credit 1.0 Sep 16 Sep 17 Revenue growth (US$m) 52% (36%) • Operations across 17 markets • >300,000 merchants, 1 integration layer • US$100m investment 126 • Many large global merchants 83 • Digital remittance leader • Global reach, but deep local presence 1HFY17 1HFY18 * Year-on-year trends affected by the acquisition of Citrus Pay in November 2016 and Kreditech in May 2017, numbers in brackets represent organic growth excluding these transactions and fx. The Kreditech investment included cash of US$99m and committed loan funding, for a total transaction value of ~US$120m. 13

Online food delivery: highly attractive opportunity iFood – investing in further growth (US$m) Online food delivery footprint* 53 49 20 5 16 2 (2) (7) FY16 FY17 1H FY17 1H FY18 Revenue Trading profit *Includes Naspers subsidiaries and online food delivery associates Delivery Hero – strong growth in 3Q 2017 64% 48% 48% 384 206 2 728 235 139 1 842 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 Orders (m) GMV (EURm) Revenue (EURm) * Company data, detailed results available at www.deliveryhero.com. 14

Video entertainment: solid subscriber growth Video- entertainment subscriber homes (‘000) Subscriber mix (‘000) 11% 1 890 7,259 8,402 10,234 11,002 12,232 Total 2 005 3 290 3 266 2 981 +17% 2 553 7 052 5 730 2 428 873 2 615 2 401 +9% 1H FY17 1H FY18 541 2 243 2 355 15% 2 019 18% 27% 30% +10% 6,636 6,048 5,563 5,174 4,699 58% 52% 1H FY17 1H FY18 1H FY14 1H FY15 1H FY16 1H FY17 1H FY18 Premium Compact Lower-end SA DTH SSA DTH SSA DTT 15

Video entertainment: positioning for the future South-Africa Sub-Sahara SVOD/online opportunity + • Mass market growth continuing • Combined Showmax with DStvNow • Subscriber growth recovering • ARPU relatively stable at ZAR347 • Strong, early market position in SA • ARPU now US$24 due to fx, sub mix • PVR penetration 20% of base • Poland showing very good traction • Zambia commenced ASO PVR’s (‘000) Subscriber growth (‘000) Showmax: subscriber base since launch 8% +6% +13% 5 596 1 331 1 236 4 954 4671 1H FY17 1H FY18 1HFY16 1H FY17 1H FY18 16

FINANCIALS

1H FY18 financial highlights Strong growth in revenue and core earnings 1 Development spend trending down 2 Ecommerce: topline growth accelerated, reduced losses 3 4 Classifieds: turned profitable (excluding letgo) 5 Healthy boost from Tencent 6 Balance sheet strong, current business plan fully funded 18

Synopsis of financials Revenue* (US$m) Development spend* (US$m) 33% (39%) -5% (-6%) 496 9 021 470 6 788 1H FY17 1H FY18 1H FY17 1H FY18 Trading profit* (US$m) Core HEPS (USc) 65% 40% (52%) 2 067 350 1 473 212 1H FY17 1H FY18 1H FY17 1H FY18 *Results reported on an economic-interest basis, i.e. equity-accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. 19

Ecommerce and Tencent fuel robust revenue growth Revenue* by segment (US$m) Incremental revenue* by segment, YoY (US$m) YoY change (%) 0% 38% 56% 7% 5% 4% 33% (39%) 120 14 28 (277) 1,943 405 9,021 6,788 Ecommerce (18%) SNS (59%) 1H FY17 Ecommerce SNS Video Media M&A and Forex 1H FY18 entertainment other Video entertainment (20%) Media & other (3%) *Results reported on an economic-interest basis, i.e. equity- accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. SNS includes Tencent and Mail.ru. 20

Ecommerce growth accelerating Constant currency revenue growth by type* 180% 186% 90% 135% 76% 75% 60% 38% 38% 37% 30% 36% 29% 24% 24% 16% 0% Ecommerce Classifieds eTail Payments Food delivery Travel 1H FY17 1H FY18 *Results reported on an economic-interest basis, i.e. equity-accounted investments are proportionately consolidated, reflecting year-on-year growth in local currency, excluding M&A. Note: Allegro was sold in FY17, resulting in the marketplace segment falling away. 1HFY17 revenue growth in Travel was boosted by the launch of the India hotel segment. 21