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

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Financial results presentation

For the six months ended 30 September 2017

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Important information

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This presentation contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act

f 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.

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Agenda

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

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OPERATIONS

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1H FY18 operational highlights

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1 2 3 4

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

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15.8 19.1 1H FY17 1H FY18

Classifieds: strong traction across portfolio

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* Data reflects full year averages at 100% of controlled entities and a proportionate share of equity-accounted investments.

MULs (m)*

21% 65.7 85.4 1H FY17 1H FY18

App MAU (m)*

30%

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Classifieds: increased revenue/user & margin expansion

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* Sources: Company filings, investor reports, EIU reports and Factset, FX rates converted based on year average.

EBITDA margins: expanding, but room to be best in class (OLX monetisation countries only)* OLX: revenue/internet user - monetisation countries

0.72 1.08 1.45 FY16 FY17 FY18E

# of Countries Margin %

34%

10 12 14 45% 45% 54%

40% 52% 54% 60% 64% 66%

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Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17

Classifieds: Avito shows consistent growth

8 MULs App MAUs # of Paying Listers

Key growth metrics – Avg. 1H17 vs. 1H18

+32% +42% +16%

Buyers and sellers in apps (Apr 14 = 100)

62x

Revenue (RUBbn)*

34%

Adjusted EBITDA (RUBbn)*

44%

57x 4.3 6.7 11.7 8.4 11.3 FY14 FY15 FY16 9m FY16 9m FY17 2.2 3.3 6.2 4.7 6.8 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.

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Classifieds: Poland exceeding expectations

9 # of Paying Listers App MAUs MULs +24% Horiztonal Vehicles Real Estate

Note: Vehicles and real estate revenues include revenues from those categories on the OLX branded platform.

YoY growth in revenue (indexed)

+38% +31% +47% +99% +133%

Key growth metrics – Avg. 1H17 vs. 1H18 Revenue split (PLNm) – (indexed)

50% FY16 FY17 1H FY17 1H FY18 1H18 Advertising C2C Goods Jobs/Services Property Cars

Revenue split (PLN)

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Classifieds: early monetisation in Brazil, plenty of runway

Key Market Insights

4th Largest Internet Base Globally 140m users Top 10 Private Consumption Globally >US$1bn per annum Young, Mobile First Demographic 65% population < 40 yrs

Source: Euromonitor online database

1H FY17 1H FY18

88%

OLX Brazil revenue (BRLm) OLX Brazil trading loss (BRLm)

66%

1H FY17 1H FY18

*Financials reflect 100% ownership, Naspers owns 50% of OLX Brazil

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Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Close5 5Miles letgo OfferUp

Classifieds: letgo USA… USA now also overtook Offerup in mobile minutes

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Monthly Minutes Spent (Mobile App) Mobile monthly active users (Mobile MAUs)

120% 19% Letgo as % of OfferUp

Source: Leading third-party data provider

81% 19% Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Close5 letgo 5Miles Offerup Letgo as % of OfferUp

Source: Leading third-party data provider

106%

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B2C etail: strong GMV growth and improving unit economics

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B2C etail* segment GMV (US$m)

40%

YoY growth in GMV (US$m)

72% 43% 35% Takealot Flipkart eMAG

19%
11%
9%

1H FY16 1H FY17 1H FY18

B2C etail segment EBITDA as % of GMV

554 746 1 047 1H FY16 1H FY17 1H FY18

*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.

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Payments: continuing to scale organically and through M&A

Revenue growth (US$m)

52% (36%) 1.0 1.8 Sep 16 Sep 17

Average daily transactions (m)

86% (63%)

Operations across 17 markets
>300,000 merchants, 1 integration layer
Many large global merchants
Global reach, but deep local presence
~US$120m investment
Provides AI-based credit

Scaling rapidly

13

Strong growth Select investments

83 126 1HFY17 1HFY18

US$100m investment
Digital remittance leader

* 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.

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Online food delivery: highly attractive opportunity

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Online food delivery footprint* iFood – investing in further growth (US$m) Delivery Hero – strong growth in 3Q 2017

16 53 20 49 (7) 5 2 (2) FY16 FY17 1H FY17 1H FY18 Revenue Trading profit

*Includes Naspers subsidiaries and online food delivery associates

139 206 9M FY16 9M FY17 1 842 2 728 9M FY16 9M FY17 235 384 9M FY16 9M FY17

Orders (m)

48%

GMV (EURm) Revenue (EURm)

48% 64%

* Company data, detailed results available at www.deliveryhero.com.

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4,699 5,174 5,563 6,048 6,636 2 019 2 355 2 243 2 401 2 615 541 873 2 428 2 553 2 981

1H FY14 1H FY15 1H FY16 1H FY17 1H FY18 SA DTH SSA DTH SSA DTT

Video entertainment: solid subscriber growth

Video-entertainment subscriber homes (‘000)

11%

Subscriber mix (‘000)

52% 58% 30% 27% 18% 15% 1H FY17 1H FY18 Premium Compact Lower-end

+17% +9% +10%

7,259 8,402 10,234 11,002 12,232

5 730 7 052 3 266 3 290 2 005 1 890 1H FY17 1H FY18

Total

15

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Video entertainment: positioning for the future

16 1 236 1 331 1H FY17 1H FY18

PVR’s (‘000)

8%

Showmax: subscriber base since launch

4671 4 954 5 596 1HFY16 1H FY17 1H FY18

Subscriber growth (‘000)

+13% +6%

Combined Showmax with DStvNow
Strong, early market position in SA
Poland showing very good traction

SVOD/online opportunity South-Africa Sub-Sahara

Subscriber growth recovering
ARPU now US$24 due to fx, sub mix
Zambia commenced ASO
Mass market growth continuing
ARPU relatively stable at ZAR347
PVR penetration 20% of base

+

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FINANCIALS

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1H FY18 financial highlights

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1 2 3 4

Strong growth in revenue and core earnings Development spend trending down Ecommerce: topline growth accelerated, reduced losses Classifieds: turned profitable (excluding letgo) Healthy boost from Tencent Balance sheet strong, current business plan fully funded

5 6

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Synopsis of financials

19 6 788 9 021 1H FY17 1H FY18

Revenue* (US$m)

33% (39%) 496 470 1H FY17 1H FY18

Development spend* (US$m)

5% (-6%)

1 473 2 067 1H FY17 1H FY18

Trading profit* (US$m)

40% (52%) 212 350 1H FY17 1H FY18

Core HEPS (USc)

65%

*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.

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Ecommerce and Tencent fuel robust revenue growth

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*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.

Revenue* by segment (US$m)

Ecommerce (18%) SNS (59%) Video entertainment (20%) Media & other (3%)

Incremental revenue* by segment, YoY (US$m)

1,943 28 6,788 1H FY17 Ecommerce SNS Video entertainment Media M&A and

ther

Forex 1H FY18 9,021 405 14 33% (39%) 120 38% 56% 7% 4% 0% 5% YoY change (%) (277)

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Ecommerce growth accelerating

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*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.

Constant currency revenue growth by type*

24% 76% 16% 29% 75% 38% 38% 37% 36% 24% 0% 30% 60% 90% Ecommerce Classifieds eTail Payments Food delivery Travel 1H FY17 1H FY18

180%

186% 135%

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Development spend lower in absolute terms

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* Development spend consists of trading losses incurred by developing businesses that have yet to reach scale. 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.

Development spend YoY (US$m)*

953 961 1 084 308 270 188 200 FY15 FY16 FY17 1H FY17 1H FY18 Older investments New investments

5% (-6%)

496 470

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Trading profit boosted by Tencent and reduced ecommerce losses

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* 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. ** Includes new bets within ecommerce, excludes Showmax which is included in video entertainment.

Incremental trading profit by segment, YoY (US$m)*

(41) 2 067 49 9 (103) (29) 661 7 1 473 1H FY17 Ecommerce New bets** SNS Video entertainment Media M&A & other Forex 1H FY18 38% 43% 3% 40% (52%) 2% 7% 6% 0%

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Classifieds and payments drive profitability in ecommerce

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Financial progress of profitable entities* (US$m)

* Information is reflected on an economic-interest basis; numbers in brackets represent YoY growth in local currency, excluding M&A, on a normalised basis (i.e. accounting for changes in shareholding). 1HFY17 numbers exclude US$205m in revenue and US$105m in trading profit associated with disposed entities.

774 1 015 311 465 288 391 110 170 FY16 FY17 1H FY17 1H FY18 Revenue Trading profit 55% (52%) 50% (36%) 162 166 Contribution from disposed entities 122 331

443

317

698

443 698 229

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Classifieds now profitable (excluding letgo)

25 214 266 426 196 288 FY15 FY16 FY17 1H FY17 1H FY18

OLX Group revenue (US$m)

*Information is reflected on an economic-interest basis, all numbers exclude letgo. Numbers in brackets represent year-on-year growth in local currency, excluding M&A. FX contributed 9% to nominal revenue growth in 1HFY18. Profitable entities reflect businesses that reported a trading profit for the six-months ended 30 September.

47% (38%)

OLX Group trading profit/(loss) (US$m)

(286) (192) (78)

(28)

55 FY15 FY16 FY17 1H FY17 1H FY18 107 150 (135) (95)

Split in OLX Group trading profit/(loss) (US$m)

1HFY17 1HFY18 40% Profitable entities Loss-making entities 30%

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1 645 1 777 226 234

1H FY17 1H FY18 Revenue Trading profit

Video entertainment: steady profitability

Video entertainment (VE) financials (US$m) Capital expenditure (US$m)

43 17

1H FY17 1H FY18 60%

Programming and production costs (US$m)

545 573

1H FY17 1H FY18 5% 8% 4% 26

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494 479 (103) (115) 1H FY17 1H FY18 Revenue Trading profit

Video entertainment: solid results from SA, SSA stabilised

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Naira* continues to weaken… ... but cost controls and renewed sub growth led to some stability (US$m)

25%
1%

9% FY16 FY17 1H FY18

ZAR* strengthened vs US$ … … which, together with sub growth, boosted results (US$m)

1 341 1 478 368 416 1H FY17 1H FY18 Revenue Trading profit

South Africa Sub-Saharan Africa

*Reflecting change in average rates for the reporting periods

14%
44%
33%

FY16 FY17 1H FY18 10%

3%

13%

12%

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Associates: healthy contribution from Tencent and Mail.ru

28 30 411 41 764 58 154 43 208 60 170 2014 2015 2016 9M FY16 9M FY17

Tencent operating profit (RMBm)*

CAGR +38%

39% 16 850 18 086 17 914 12 945 14 106 2014 2015 2016 9M FY16 9M FY17

Mail.ru EBITDA* (RUBm)

CAGR +3%

9%

*Reflects 100% of Jan-Sep 2017 (9M FY17) results on a non-GAAP basis; detailed results available at www.tencent.com. * Reflects 100% of Jan-Sep 2017 (9M FY17) results on a non-GAAP basis; detailed results available at www.corp.mail.ru.

Tencent market cap (US$bn)

178 192 272 511 FY15 FY16 FY17 20 Nov 2017

Mail.ru market cap (US$bn)

4.2 4.5 4.6 6.6 FY15 FY16 FY17 20 Nov 2017

Note: Financial information as per financial years ending December, which differs from the Naspers reporting period. Equity accounted investments is included on a 3-month lagged basis. FY data as at 31 March.

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FCF: increased cash from operations offset by change in working capital

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Free cash flow (FCF) breakdown (US$m)

(1) 1H FY17 Cash from operations Working capital* Capex Dividends received Other 1H FY18 (239) 33 57 12 (96) 42

*Working capital affected by investment in decoder inventory and pre-payments of sports rights.

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M&A activity

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Acquisition spend over time (US$m)

262 553 139 FY15 FY16 FY17 1H FY17 1H FY18

420

1,495

Announced after half year-end Investments

US$775m

1,005

US$100m US$36m

Total US$911m

420

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Balance sheet strong, current business plans fully funded

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US US$m FY17 Y17 1H FY1 Y18 Debt*: (offshore US$3.2bn) (2,898) (3,305) Cash: (South Africa US$272m) 4,003 3,165 Closing net cash / (debt) 1,105 (140) Gearing

7%

1% Interest on loans and overdrafts (74) (54)

* Excludes satellite lease liabilities (US$1.2bn) and non-interest bearing debt (US$207m).

Group net cash / (consolidated debt) (US$m)

(1 994) (1 213) 1 105 (140)

2 500

FY15 FY16 FY17 1H FY18

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OUTLOOK

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Outlook

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1 2 3 4

Continue to drive scale across all segments Accelerate path to profitability for ecommerce Consistently drive cost reduction and margin improvement Selectively invest in emerging growth opportunities Set up application of AI/ML in all our businesses

5

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APPENDIX

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Summarised income statement

US US$m 1H FY1 Y17 1H FY1 Y18 Revenue* 6,788 9,021 Less: Equity-accounted investments (3,830) (5,914) Consolidated revenue 2,958 3,107 Trading profit 45 70 Trading margin 2% 2% Net finance costs (165) (125) Share of equity-accounted results 912 1,447 Gains on acquisitions and disposals 39 (51) Impairments (28) (37) Taxation (144) (148) Net profit 541 1,076 Core headline earnings 914 1,510 Core headline EPS (US$) 2.12 3.50

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

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Group structure

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1) OLX owns 50% of operations in Brazil and 40.5% of Indonesia 2) Our effective interest in letgo USA (B.V) is 47.1% held through Ambatana Holdings 3) MMYT listed on the Nasdaq stock exchange; fully diluted holding 40% 4) Showmax SA is held 80%, other Showmax operations are held 100% * Organogram depicts effective percentage holdings in major entities.

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Glossary of terms

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— AI: Artificial intelligence — ARPU: Average revenue per user — B2C: Business to consumer — C2C: Consumer to consumer — CAGR: Cumulative annual growth rate — COHE: Core headline earnings — DPS: Dividend per share — DTH: Direct-to-home — DTT: Digital terrestrial television — EPS: Earnings per share — FCF: Free cash flow — FX: Foreign exchange — GMV: Gross merchandise value — M&A: Mergers and acquisitions — MAU: Monthly active user — ML: Machine learning — MUL: Monthly unique lister — RPIU: Revenue per internet user — PVR: Personal video recorder — SSA: Sub-Saharan Africa — SNS: Social network services — SVOD: Subscription video-on-demand — TPV: Total payment value — VE: Video entertainment

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THANK YOU

Meloy Horn

+27 11 289 3320 +27 82 7727 123 InvestorRelations@naspers.com www.naspers.com