Financial results presentation For the year ended 31 March 2012 - - PowerPoint PPT Presentation

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Financial results presentation For the year ended 31 March 2012 - - PowerPoint PPT Presentation

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Financial results presentation For the year ended 31 March 2012 Important information This presentation contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such as

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For the year ended 31 March 2012

Financial results presentation

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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

  • bligation 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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Group Highlights Key Messages Financial Results Operational Performance Outlook Appendix

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FY12 Key financials

Mar 11 Mar 12

Revenue (ZARbn)

33.1 39.5

Up 19%

7.1 7.0

EBITDA (ZARbn)

Down 3%

16.12 18.50

Up 15%

Core HEPS (ZAR)

2.70 3.35

Up 24%

DPS (ZAR)

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FY12 Group highlights

Financial Operational

  • Revenue up 19%, mainly driven by internet
  • EBITDA down 3%, impact of expensing growth initiatives
  • Core HEPS grew 15% to ZAR18.50
  • 24% increase in DPS proposed
  • Internet: +59% revenue growth, services being developed
  • Pay-TV: sub growth +14% YoY

, competition increasing

  • Print: effective cost controls, improved results

Strategic

  • Building out e-commerce businesses and DTT
  • Ongoing focus on organic growth
  • Development spend up 84% to ZAR2.8bn (US$380m)
  • Acquisitions amounted to $260m
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Group Highlights Key Issues Financial Results Operational Performance Outlook Appendix

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FY12 Key issues

Maintained revenue growth Increased focus on e-commerce Acceleration in development spend Satisfactory pay-TV growth

1 2 3 4

Fewer M&A opportunities

5

Group diversity reduces risk

6

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Maintained revenue growth momentum

25,305 34,505 37,251 45,103 56,522

  • 10,000

20,000 30,000 40,000 50,000 60,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Revenue (ZARm)*

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

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Increased focus on e-commerce

2 389 2 761 3 684 5 725

  • 1 000

2 000 3 000 4 000 5 000 6 000 Mar 09 Mar 10 Mar 11 Mar 12

Naspers e-commerce revenue (ZARm) e-commerce as % of total retail (2011A)

8% 6% 5% 4% 4% 3% 3% 3% 2% 2% 2% 2% 1% 1% 1% 0% 3% 6% 9%

UK USA Czech Poland W EU Brazil Eurozone Japan EEU Russia Hungary Ukraine Romania Turkey Mexico

Source: Euromonitor, BofA- ML Global Research, select GEM markets in orange

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10 5.1% 5.7% 5.5% 5.0% 4.5% 3.6% 4.4% 4.0% 4.6% 6.1% 7.1% 0% 1% 2% 3% 4% 5% 6% 7% Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12

Acceleration in group development spend

Development spend as % of revenue

15,187 20,363 21,311 25,712 31,180 1,093 1,211 1,240 1,535 2,823

  • 9,000

18,000 27,000 36,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Other operating costs Development costs

Development spend vs. Other operating costs (ZARm)

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  • 100

200 300 400 500 Mar 08 Sept 08 Mar 09 Sept 09 Mar 10 Sept 10 Mar 11 Sept 11 Mar 12

Pay-TV subscriber growth satisfactory

Net additions (‘000)

Average = 349

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Fewer M&A opportunities

Total cost Total cost Percentage Company Date FCm US$m acquired Travel Boutique Mar 12 INR1,000 20 50% Markafoni Jul/Dec 11 PLN239 95 80% Slando Jul 11 US$29 29 100% Fashion Days Dec 11 PLN185 54 90% 7 Pixel Apr 11 EUR23 35 85% Other 27 TOTAL 260 214 517 754 260

  • 250

500 750 1 000 Mar 09 Mar 10 Mar 11 Mar 12 Total acquisition spend (US$m)

Acquisitions FY12

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Diversification reduce risks

Subscription (37%) IVAS & games (20%) Advertising (14%) Print media (9%) e-commerce (9%) Technology (4%) Other (7%) Pay TV (43%) Internet (34%) Print Media (21%) Technology (2%)

FY12 Revenue by Business* FY12 Revenue by Geography*

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

South Africa (46%) Asia (22%) Latam (11%) Rest of Africa (11%) Europe (9%) Other (1%)

FY12 Revenue by Type*

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Group Highlights Key Issues Financial Results Operational Performance Outlook Appendix

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Summary consolidated income statement

Mar 11 ZARm Mar 12 ZARm Revenue 33,085 39,487 EBITDA 7,149 6,960 EBITDA margin 22% 18% Trading profit 5,838 5,485 Net finance costs (1,018) (697) Share of equity accounted results 3,290 3,869 Other 1,480 (834) Taxation (1,861) (2,059) Net profit 5,947 3,481 Core headline earnings 6,036 6,951 Core headline EPS (ZAR) 16.12 18.50

3 1 2 2

2

EBITDA and trading profit lower mainly due to 84% rise in development spend

5

Core headline earnings growth +15%

4

Current year affected by accounting movements in associates and prior year by Mail.ru roll-up into DST Interest paid flat due to lower rate on new RCF; BEE preference dividends and net foreign exchange impact both favourable

3 1

Revenue growth 19% YoY, some acceleration in 2H 4 5

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Revenue growth mainly driven by internet

  • Internet delivered 59% growth YoY
  • Tencent & Mail.ru’s contribution +59%
  • Other internet increased 57%
  • Pay-TV revenues grew 15%, driven by:
  • 14% increase in subscribers
  • Good growth in advertising revenue
  • Print buoyed by commercial print contracts

Revenue* (ZARm) Revenue* – historic growth (ZARm)

21,025 12,092 10,758 24,093 19,192 12,071

  • 5,000

10,000 15,000 20,000 25,000 Pay-TV Internet Print Mar 11 Mar 12 25,305 34,505 37,251 45,103 56,522 5,000 15,000 25,000 35,000 45,000 55,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Revenue* (ZARm) Mar 11 Mar 12 % Change Economic interest 45,103 56,522 25%

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

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2 1

Development spend per business division

ZAR1.7bn for e-commerce ZAR543m for DTT, mobile TV and online ZAR134m for other technologies

Development spend (ZARm) Development spend split FY12

Internet (66%) Pay-TV (26%) Other (8%)

1,129 1,211 1,240 1,535 2 823 500 1 000 1 500 2 000 2 500 3 000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Focus on organic growth

Mar 11 ZARm Mar 12 ZARm % Change Internet 705 1,857 163% Pay-TV* 607 731 20% Other 223 235 5% Total 1,535 2,823 84%

1 2

* Development cost for the technology business included in pay-TV

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18 5,243 7,173 8,537 10,220 11,210

  • 2,000

4,000 6,000 8,000 10,000 12,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Rise in development spend = lower profit growth

  • Pay-TV profit margins affected by growth initiatives:
  • Roll-out of DTT services
  • Additional investment in content
  • Internet margin down to 20% due to:
  • cost of scaling e-commerce operations
  • further expansion of Allegro’s product offering
  • lower Tencent margins
  • Print margin benefited from effective cost management

Trading profit* (ZARm) Trading profit* – historic growth (ZARm)

5 727 3 493 872 6,331 3,800 1,090

  • 1 000

2 000 3 000 4 000 5 000 6 000 Pay-TV Internet Print Mar 11 Mar 12

Trading profit (ZARm)1 Mar 11 Mar 12 % Change Economic interest 10,220 11,210 10% Trading margin 23% 20%

1 Before amortisation, other gains/losses and including transponder leases

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

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Increased contribution from associates

* Tencent, Mail.ru Group and Abril numbers reflect their financial periods Jan-Dec 2011

Associate contribution to core headline earnings

2 1 3

Continued increase in internet usage and solid growth in core business Online advertising and community IVAS remain key drivers of monetisation Affected by deferred tax adjustments

Mar 11 ZARm Mar 12 ZARm % Change Tencent 3,164 4,376 38% Mail.ru 152 364 139% Abril 250 205

  • 18%

Other 28 7

  • 75%

TOTAL 3,594 4,952 38%

1 3 2

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Higher capex = lower free cash flow

1

Pay-TV ZAR1,187m Internet ZAR367m Print ZAR360m 2,062 2,432 4,123 3,991 3,619

  • 1,000

2,000 3,000 4,000 5,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Free cash flow (ZARm) Mar 11 ZARm Mar 12 ZARm Operating cash flow 7,386 7,505 Capex (1,555) (2,034) Finance leases (473) (477) Tax (1,983) (1,923) Investment income 616 547 Free cash flow 3,991 3,619

1

FCF from operations

2

2 2

Dividends received from associates

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Balance sheet remains strong

1 2

Consequence of debt-funded acquisitions Excludes transponder leases of ZAR2.4bn, considered to be an operating cost

Mar 12 ZARm Net debt – offshore (US$1.2bn) (9,578) Minus: Net cash – South Africa 4,983 Closing net debt (4,595) Group gearing (excl. transponder leases) Interest cover 10% 11x

Group net consolidated debt

1 2

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Group Highlights Key Issues Financial Results Operational Performance Outlook Appendix

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Internet Focus

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Internet: Tencent

Revenue mix FY12*

  • Gained market share in online gaming
  • Expanded open platform to enhance user activity
  • Building out e-commerce
  • Expanding online advertising business
  • Well positioned for continued growth of mobile

internet

  • Profitability impacted by investment in new

growth initiatives

  • Key operational statistics at 31 March 2012:
  • 752m active IM accounts (+12% YoY)
  • 167m peak concurrent IM accounts

(+22% YoY)

  • 9m PCU’s for open games platform

(+14% YoY)

  • 82m IVAS subscriptions (+13% YoY)
  • Contribution to FY12 core headline earnings

ZAR4.4bn (FY11 ZAR3.2bn)

IVAS gaming (56%) IVAS other (24%) MVAS (12%) Advertising & other (8%)

* Data for FY12 reflects 100% of results Jan-Dec 2011 available on www.Tencent.com; FY12 ZAR/Rmnb1.162 (1.068)

Solid growth in core businesses

RMBm* Dec 10 Dec 11 % Change Revenue 19,646 28,496 45% Operating profit 9,838 12,254 25% Operating margin 50% 43%

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Internet: Mail.ru Group

Revenue mix FY12*

  • Structural drivers of business remain healthy
  • Mobile now a major driver of user growth
  • Market leader in online gaming
  • Increased interoperability + user engagement

= acceleration in IVAS revenues

  • Scale benefits and cost controls drove margin

uplift

  • Key operational statistics at 31 March 20121
  • portal: 33m (+18% YoY)
  • email: 27m (+17% YoY)
  • SNS: Odnoklassniki 25m (+38% YoY)
  • IM: Mail.ru Agent 26m (+20% YoY)
  • Contribution to FY12 core headline earnings

ZAR364m (FY11 R152m)

MMO Games (28%) Community IVAS (24%) Display advertising (26%) Context advertising (11%) Other (11%)

Sources: 1TNS statistics for Russia only reflecting average monthly unique users * Data reflects 100% of Mail.ru Group’s FY12 aggregate segment performance as reported. For IFRS results with full disclosure and recon refer to www.corp.mail.ru; FY12 ZAR/US$ 7.41 (7.16)

Strong growth driven by IVAS and display advertising

US$m* Dec 10 Dec 11 % Change Revenue 325 515 58% EBITDA 119 283 138% EBITDA margin 37% 55%

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Internet: e-commerce strategy

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Internet: e-commerce

e-commerce revenue by type

  • Expanding into different areas of e-commerce
  • Scope of services determined by market dynamics
  • Change in revenue mix to impact LT margins
  • Increased development spent of ZAR1.7bn

(FY11 ZAR575m) impacted FY12 profits

  • Cost hike due to development and marketing of new

products and services

Facilitation (45%) B2C (22%) Lead generation (11%) Payment platforms (7%) Classifieds (4%) Vertical e-tail (4%) Other (7%)

Focus on scaling operations affects profits

ZARm Mar 11 Mar 12 % Change Revenue 3,684 5,725 55% Trading profit 142 (913) >-100% Trading margin 4%

  • 16%

119 272 268 575 1 725

  • 500

1 000 1 500 2 000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

e-commerce development spend (ZARm)

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PLNm* Mar 11 Mar 12 % Change Revenue 859 1,312 53% Trading profit 277 131

  • 53%

Trading margin 32% 10%

  • excl. development spend & acquisitions

38% 32%

Internet: Allegro Group

Revenue mix FY12

  • Revenue growing in line with expectations
  • International expansion ongoing – contributed

34% of revenue (14% in FY11)

  • Operations now in 15 countries and 6 verticals
  • Acquired Markafoni (Turkey), Fashion Days

(CEE) and Slando (Russia & Ukraine)

  • Increased focus on organic development:
  • Payment platforms
  • Classifieds in 10 markets, leader in 5
  • Development cost of PLN113m (FY11 PLN52m)

and acquisitions impacted profits

Facilitation (58%) B2C (23%) Classifieds (7%) Lead generation (4%) Payment Platforms (2%) Other (6%)

Change in revenue mix driven by product expansion

* Data reflects 100% of results; FY12 ZAR/Zloty 2.44 (2.37)

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Internet: Other e-commerce

  • Buscape
  • Total revenue more than doubled YoY; organic growth +65% YoY
  • Core comparison shopping business maintaining good growth momentum
  • Profitability affected by investment in new growth initiatives
  • Competition in Brazil increasing
  • ibibo
  • Repositioned business to focus more on e-commerce
  • Good growth and early traction from Goibibo online travel platform.
  • Tradus.in one of the largest online marketplaces
  • OLX
  • Global player in very competitive online classifieds segment
  • Development spend accelerated to increase scale
  • Rolling out services on mobile platforms
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Pay-TV: Positioning for the future

Togo Guinea Ghana Benin Mali Burkina Faso Ivory Coast Nigeria Niger Sudan Eritrea Ethiopia Central African Rep. Cameroon Equatorial Guinea Gabon Democratic

  • Rep. of

Congo Rwanda Burundi Uganda Kenya Angola Namibia Zambia Tanzania Malawi Zimbabwe Botswana Mozambique Madagascar Swaziland Lesotho South Africa

In 48 countries across Africa ANYTIME, ANYWHERE, ANY DEVICE

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Pay-TV: Growth dynamics

Net subscribers (‘000)

205 195 424 607 677

  • 100

200 300 400 500 600 700 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 599 517 656 1 159 1 187

  • 200

400 600 800 1 000 1 200 1 400 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Development spend (ZARm) Capital expenditure (ZARm) Programming costs* (ZARm)

3,280 3,709 4,304 5,497 6,037

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 1,948 2,401 2,852 3,489 3,981 686 916 1,099 1,439 1,630 – 1,000 2,000 3,000 4,000 5,000 6,000 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 South Africa Sub-Saharan Africa

* Prior year numbers adjusted to exclude production costs

DTT Mobile TV Online Broadcasting equipment DTT Online

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Pay-TV: South Africa

Digital subscriber mix

25% 26% 32% 35% 43% 39% Mar 11 Mar 12 Premium Compact Other

  • 100

200 300 400 Mar 09 Sept 09 Mar 10 Sept 10 Mar 11 Sept 11 Mar 12

SA net additions(‘000)

Average = 254

  • 492,667 net additions YoY
  • Premium +3%, Compact +27%
  • Select +40%, PVR +37%
  • BoxOffice - good start, 40% of PVR’s registered,

now avg. >300k movie rentals p.m.

  • Advertising growth 18% YoY
  • Increased investment in decoder subsidies
  • Regulatory challenges

Mar 11 Mar 12 % Change Net subscribers (‘000) 3,489 3,981 14% ZARm ZARm Revenue* 15,980 18,202 14% Trading profit 5,075 5,986 18% Trading margin 32% 33%

Solid results

* Revenue excludes intergroup revenues

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Pay-TV: Sub-Saharan Africa

Digital subscriber mix

13% 17% 42% 42% 45% 41% Mar 11 Mar 12 Premium Family & Compact Other

  • 50

100 150 200 Mar 09 Sept 09 Mar 10 Sept 10 Mar 11 Sept 11 Mar 12

SSA net additions (‘000)

Average = 114

  • Subscriber growth improved 2H
  • 191,766 net additions YoY
  • Premium +3%, Compact & Family +13%
  • Margin pressure from:
  • start-up of new DTT operations
  • investment in content
  • Launched DTT (GOtv) in Zambia, Uganda,

Kenya and Nigeria

  • Competition and regulations increasing

Mar 11 Mar 12 % Change Net subscribers (‘000) 1,439 1,630 13% US$m US$m Revenue 703 795 13% Trading profit 108 78

  • 28%

Trading margin 15% 10%

Significant investments

FY12 ZAR/US$7.41 (7.16)

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Group Highlights Key Issues Financial Results Operational Performance Outlook Appendix

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Outlook: Continued investment in future growth

Strategy

  • Focus on e-commerce
  • Increase mass-market penetration of pay-TV
  • Continue to invest in strong, founder-managed businesses

Financial

  • Revenue growth should be maintained
  • Organic development spend to continue around current levels
  • Expect limited FY13 earnings growth as a consequence

Operational

  • Pay-TV: Accelerate DTT rollout
  • Internet: Drive scaling of businesses
  • General: Deal with increased competition and regulation
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Group Highlights Key Issues Financial Results Operational Performance Outlook Appendix

36

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Summary of Pay-TV subscribers

Net subscribers* Mar 11 Mar 12 % Change South Africa 3,488,599 3,981,266 14% Analogue 84,690 64,380

  • 24%

Premium, Compact and Other 2,899,884 3,309,285 14% Easyview 504,025 607,601 21% Rest of Sub-Saharan Africa 1,438,681 1,630,447 13% Premium, Compact and Other (incl. GOtv) 1,433,406 1,630,291 14% Easyview 5,275 156 n/a Total 4,927,280 5,611,713 14% PVR subscribers South Africa 480,343 656,890 37% Rest of Sub-Saharan Africa 80,892 98,928 22% Total 561,235 755,818 35%

*Net subscribers reflect total subscribers net of churn. Historically we referred to these as “gross subscribers” and the change in terminology was made to avoid confusion.

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Print: Media24 SA

Revenue mix FY12

  • Economic environment remains challenging
  • Advertising and circulation revenue up 4%
  • Printing revenue up 53% YoY
  • Profits boosted by

‒ Additional commercial print contracts ‒ Continued cost control

  • Development of digital applications continuing

Capex trend*

Advertising (34%) Circulation (19%) Printing (28%) Distribution (5%) Books (7%) Other (7%)

489 433 684 348 360

  • 100

200 300 400 500 600 700 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

ZARm Mar 11 Mar 12 % Change Revenue* 6,697 7,686 15% Trading profit 417 587 41% Trading margin 6% 8%

Improved revenues

* Capex excluding insurance proceeds and inter-group transactions * Revenue excludes intergroup revenues

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Print: Abril

Steady performance

  • Revenue growth affected by sluggish economy
  • Advertising +7% YoY and circulation -3% YoY
  • Expanded logistics and distribution services
  • Margins benefited from lower input costs
  • Contribution to core headline earnings ZAR205m

(ZAR250m) BRLm Dec 10 Dec 11 % Change Revenue 3,028 3,152 4% Operating profit 327 380 16% Operating margin 11% 12%

*Data reflects 100% of results Jan – Dec 2011; FY12 ZAR/BRL 4.37 (4.17)

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Technology: Irdeto

  • Shipped 18.8m CA units, up 2% YoY
  • Non-group sales accounted for 67% of revenue
  • Added new clients particularly in Cloaked CA

(software CA) and products that help pay TV

  • perators take their services online
  • Margin contraction related to:
  • Continued investment in online products/services
  • CA volume mainly to lower ASP customers
  • Cloakware technology fundamental to software CA

and online strategy Units shipped (m)

9.4 10.6 15.1 16.0 18.0 18.8 5 10 15 20 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12

Focusing on new product development

* Reflect 100% of operations before any inter-company adjustments

US$m Mar 11 Mar 12 % Change Revenue 247 236

  • 4%

Trading profit 18 (2)

  • 109%

Trading margin 7%

  • 1%

FY12 ZAR/US$7.41 (FY11 7.16)

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Core headline earnings

Mar 11 ZARm Mar 12 ZARm Headline earnings 4,213 4,874 Treasury-settled share scheme charges 488 652 Deferred tax adjustments 13 (38) Amortisation of intangible assets 1,052 1,191 Business combination-related costs 124 110 RCF – accelerated amortisation of costs 128

  • Fair value adjustments & currency translations

18 162 Core headline earnings 6,036 6,951

1

Includes ZAR468m from Tencent and Mail.ru 1 Includes ZAR22m relating to associates 2

2

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Associates contribution

IFRS PPA Company Other Core HEPS ZARm results adjustments results adjustments* contribution Tencent 3,787

  • 3,787

589 4,376 Mail.ru (21) 150 129 235 364 Abril 104 136 240 (35) 205 Other (1) 6 5 1 6 TOTAL 3,869 292 4,161 790 4,952 Associates contribution to Core HEPS (ZARm)

Associates contribution FY12

4,952 292 4,161 790 3,869 IFRS results PPA adjustments Company results Other adjustments Core HEPS Contribution

* Headline and core earnings adjustments similar to Naspers methodology

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Net finance costs

Mar 10 Mar 11 Mar 12 ZARm ZARm ZARm Interest (paid) (883) (1,389) (1,271) Loans and overdrafts (600) (883) (877) Transponder leases (93) (144) (132) RCF costs write-off

  • (128)
  • Other

(190) (234) (262) Interest received 348 401 400 Loans and call accounts 314 308 360 Other 34 93 40 Other finance costs, net 114 (30) 174 FX translation adjustments (154) (247) (135) BEE preference dividends 268 217 309 Total finance costs (421) (1,018) (697)

Debt include:

  • US$700m 7-year bond issued Jul10:
  • 6.375% coupon
  • 5-year US$2bn RCF arranged Mar11:
  • US$1.1bn drawn at March 2012
  • US$800m fixed at 4.3% all-in for 5 years
  • floating interest of ~2.1% on rest (1.75% +

3month LIBOR + other costs)

  • Cost of transponder leases (depreciation and

finance costs) included in trading profit

  • SSA: new 15-yr lease effective Dec09
  • Total cost ~US$44m p.a.
  • SA: new agreement effective Sep12

–

Current cost ~ US$24m p.a.

–

To increase to US$42m p.a. 1

1

1 2

2

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Taxation analysis

Mar 11 ZARm Mar 12 ZARm Profit before tax 7,808 5,539 Add back: Development spend 1,535 2,823 Equity results (including impairments) (3,267) (3,775) Other gains and losses (623) 2,188 FX gains and losses 248 135 BEE preference dividends (217) (309) Adjusted profit before tax 5,484 6,601 Adjusted tax charge (1,861) (2,059) Effective rate 34% 31%

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Capital expenditure

Mar 11 ZARm Mar 12 ZARm Land, buildings & plant 327 412 Transmission equipment 506 626 Computer, software & network equipment 663 901 Other (including vehicles, furniture) 59 95 Capital expenditure 1,555 2,034 Capex/Revenue 5% 5%

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Minimal impact of currency movements

Revenue growth YoY * Trading Profit growth YoY *

ZAR fluctuation impacts translation of offshore earnings

Average Closing rate Currency (ZAR = 1FC) Mar 11 Mar 12 % change Mar 13E Mar 11 Mar 12 % change US dollar 7.16 7.41

  • 4

8.21 6.77 7.67

  • 13

Euro 9.49 10.22

  • 8

11.16 9.60 10.23

  • 6

Chinese Yuan/Renminbi 1.07 1.16

  • 8

1.28 1.04 1.22

  • 12

Brazilian Real 4.17 4.37

  • 5

4.56 4.16 4.20

  • 5

Polish Zloty 2.36 2.44

  • 3

2.49 2.38 2.46

  • 3

Nigerian Naira 0.04 0.05

  • 25

0.05 0.04 0.05

  • 25

56,522 54,896 20,000 30,000 40,000 50,000 60,000 Reported Constant Currency +25% +22% 11,210 10,791 3,000 6,000 9,000 12,000 Reported Constant Currency +10% +6%

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

Core Earnings growth YoY

6 951 6 573

  • 2,000

4,000 6,000 8,000 Reported Constant Currency +15% +9%

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FX - Hedging to manage risk

  • Hedging strategy:
  • 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 liability to a maximum of 24

months

  • Annualised net foreign input costs:
  • Pay-TV: US$309m (programming rights and leases)
  • Print: EUR27m and US$20m (paper and ink)
  • Almost all FEC’s qualify for hedge accounting

US$ Forward Exchange Cover EUR Forward Exchange Cover

US$m US$ rate FY13 458 7.77 FY14 327 8.22 EURm EUR rate FY13 27 10.56

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Consolidated income statement – US$

Mar 11 ZARm Mar 12 ZARm Mar 11 US$m Mar 12 US$m Revenue 33,085 39,487 4,624 5,329 Operating profit 4,056 3,201 567 432 Finance costs (1,019) (697) (142) (94) Share of equity accounted results 3,290 3,869 460 522 Acquisitions and disposals 42 (134) 6 (18) Dilution profits 1,461 (606) 204 (82) Impairment of equity accounted investments (23) (94) (3) (13) Profit before taxation 7,808 5,539 1,091 748 Taxation (1,861) (2,059) (260) (278) Net profit 5,947 3,480 831 470 Attributable to: Naspers 5,260 2,893 735 390 Minorities 687 587 96 79

*FY12 ZAR/US$7.41 (FY11 7.16)

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

Investor Relations

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