[PPT] - Results presentation For the 6 months ended 30 September 2008 PowerPoint Presentation

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Results presentation

For the 6 months ended 30 September 2008

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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

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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 cold adversely affect our

businesses and financial performance. We are not under any

bligation 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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Highlights Financial overview Operational overview Outlook Appendix

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Highlights

32% Revenue growth – 19% organic and rest acquisitive Robust revenue growth Allegro/ Ricardo Cost of growing subscriber platforms and developing products and services Margin contraction 171,000 net adds, or 15% growth YoY in total subs Strong pay-TV subscriber growth

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Performing above expectations Allegro/ Ricardo (Tradus) A consequence of debt raised to pay for the Tradus acquisition Higher finance costs Equity-accounted earnings up 221% to R405m Significant contribution from associates Sold our share of Netmed for €376m (R4.3bn), MWEB Africa to be sold for US$63m (R610m) Selective disposals

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Portfolio Analysis: Revenue*

Segmental revenue split - 1H09 (ZARm)

5,454 6,988 4,925 5,000 6,000 7,000 8,000 1H08 1H09

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*Assuming all equity-accounted investments are proportionately consolidated.

1,249 4,088 481 3,121 725 1,000 2,000 3,000 4,000 Pay TV Internet Print Technology

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Portfolio Analysis: Operating Profit*

Segmental EBITA contribution - 1H09 (ZARm)

2,019 1,995 1,400 1,700 2,000 1H08 1H09 6

*Assuming all equity-accounted investments are proportionately consolidated.

185 388 759 487

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49
100

200 500 800 1,100 Pay TV Internet Print Technology

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Financial Highlights

1H08 (Sept’07) 1H09 (Sept’08) 9.6 Up 32% 12.7 2.5 2.8 Up 11%

Revenue (Rbn) Revenue (ZARbn) EBITDA (ZARbn)

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Core Headline Earnings (ZARbn)

1.71 3.43 4.95 4.76 Up 3% Down 4%

Core HEPS (ZAR)

1.76

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Business focus

Internet Pay TV

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Technology Print

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Highlights Financial overview Operational overview Outlook Appendix

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Summary income statement

Sept '07 ZARm Sept '08 ZARm Revenue 9 587 12 652

Operating profit* 2 094 1 898 Finance costs 554 (95) Share of equity accounted results 126 405 Impairment of equity investments (68) (216)

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Impairment of equity investments (68) (216) Profit on sale of investments 34 Income before taxation 2 706 2 026 Taxation (883) (837) Profit after taxation 1 823 1 189

Core headline earnings 1 706 1 763 Core headline EPS 495 476

* After amortisation charges

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Revenue

Revenue Contribution (ZARm)

Organic growth 19%; acquisitive 13%
Internet revenue up 180%
Pay TV revenue up 28%
Advertising revenue steady +5%
Subscription annuity income 49% of total

ZARbn Sept '07 Sept '08 YoY Change Revenue 9.6 12.7 32%

5,447 2,998 725 3,108 654 6,981 1,831

1,000 2,000 3,000 4,000 5,000 6,000 7,000

1H08 1H09

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Revenue Growth (%)

Subscription annuity income 49% of total

revenue

Revenue Split: Type (%)

725 481 654 Pay-TV Internet Technology Print 14% 20% 22% 22% 4% 51% 28% 0% 10% 20% 30% 40% 50% 60% Pay-TV Internet Technology Print 1H08 1H09 180% Subscription (49%) Advertising (16%) E-commerce (9%) Other (15%) Technology (6%) Printing (5%)

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Operating margins

EBITA Contribution (ZARm) ZARbn Sept '07 Sept '08 YoY Change Operating profit* 2.2 2.4 7% Operating margin 23.0% 18.7%

* Before amortisation, other gains/losses

Pay TV margin decline

– building out subscriber base

Internet margins up

2,044 276 303

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113 2,099

200 500 800 1,100 1,400 1,700 2,000

1H08 1H09

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EBITA Margins

Internet margins up

– boosted by Allegro

Technology

– improved Irdeto sales offset by Entriq development costs

Print margins

– impacted by decline in adspend

Development costs up 16% YoY to R638m
Depreciation increased 42% YoY to R433m

276

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Pay-TV Internet Technology Print 9%

8%
7%

38% 10%

7%

6% 30%

10%

0% 10% 20% 30% 40% 50% Pay-TV Internet Technology Print 1H08 1H09

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South African Pay TV Margins

South Africa – Programming costs

Operating margin declined from 43% to 36%
Impact of strategy to broaden/deepen

subscriber base

Additional costs taken on:

– Decoder subsidies R165m – Content costs R180m – Customer service centres R63m – Licence fees R28m

0% 10% 20% 30% 40% 50% 60% Programming as % of subs revenue

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South Africa – Decoder subsidies

Impact:

– Added 79,000 additional equated subscribers – Revenue earned during period R96m – Annualised future revenue stream R380m

0% 10% 20% 30% 40% 50% 60%

31-Mar-05 30-Sep-05 31-Mar-06 30-Sep-06 31-Mar-07 30-Sep-07 31-Mar-08 30-Sep-08

0%

31-Mar-05 30-Sep-05 31-Mar-06 30-Sep-06 31-Mar-07 30-Sep-07 31-Mar-08 30-Sep-08

Decoder cost as % of decoder sales

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Development costs

Sept '07 ZARm Sept '08 ZARm YoY Change

Pay-TV 114 198 74% Internet 135 183 36%

Pay-TV:

– R60m for mobile TV – Broadband content R129m

Internet:

– R46m for ibibo – R44m for 24.com – R25m for Allegro/Ricardo start-ups

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Technology 161 158 (2%) Print 141 99 (30%)

Total 551 638 16%

– R25m for Allegro/Ricardo start-ups

Technology:

– Irdeto R63m – Entriq R95m

Print:

– Relates mainly to new titles

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Equity accounted results

Sept '07 ZARm Sept '08 ZARm YoY Change

Tencent 226 504 123% Abril 40 71 78%

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Mail.ru 20 38 90% Other (5) (29)

Contribution to core

headline earnings 281 584 108%

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Amortisation

Income Statement – Special Items

Intangible amortisation increased to ZAR448m (2007: ZAR91m) due to accounting for recent acquisitions Net interest cost of ZAR133m, versus interest income of ZAR268m prior

period. Relates mainly to cost of Tradus acquisition

Finance costs

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Profit of ZAR2.6bn on the sale of NetMed Mainly withdrawal from German mobile TV market Impairments Discontinued

perations

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Core headline earnings

Sept '07 ZARm Sept '08 ZARm Headline earnings 1 588 1 272

Treasury-settled share scheme charges 33 124 Amortisation of intangible assets 159 363

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Amortisation of intangible assets 159 363 Fair value adjustments & currency translations (71) 125 Discontinued operations (3) (121)

Core headline earnings 1 706 1 763

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Free cash flow

Sept '07 ZARm Sept '08 ZARm

Operating cash flow 2 146 2 380 Capex (519) (630)

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Finance leases (166) (195) Tax (630) (896) Investment income 72 100

Free cash flow 903 759

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Net cash flow

Sept '07 ZARm Sept '08 ZARm

Free cash flow 903 759 Net investments (493) 3 795

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Net dividends (621) (777) Discontinued operations 34 87 Net finance costs 321 (81)

Net cash flow 144 3 783

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Net Consolidated Debt

Sept '08 ZARm Comprises:

Net cash – South Africa 1 687 Net debt – offshore ($221m) (1 843)

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Net debt – offshore ($221m) (1 843)

Closing net debt (156)

Group gearing negligible

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Foreign exchange risk

US$ Forward Exchange Cover

Hedging policy

– Pay-TV: cover at least 80% of rolling 2 year net inputs – Print: cover 12 months rolling input costs

Annualised net foreign input costs

– Pay-TV US$180m – Print EUR66m

EUR Forward Exchange Cover

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US$m US$ rate

H2 FY09 81 7.88 FY10 174 8.27 FY11 to date 81 9.21

US$ Forward Exchange Cover

We have foreign denominated earnings and cash flows

EURm EUR rate

H2 FY09 36 12.34 FY10 39 12.14

EUR Forward Exchange Cover

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Highlights Financial overview Operational overview Outlook Appendix

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20 40 60 80 100 120 Rebased to 100

The world is a different place

Since we last reported …

– Values of media worldwide have halved – Access to credit extremely difficult – Real economy under pressure

Naspers adapting to these changes by:

Scaling back and cutting costs

– Print:

Reducing headcount and capex, closing titles

– Technology:

Global Indices: 1-Year Performance

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20 Jan-08 Feb-08 Apr-08 Jun-08 Jul-08 Sep-08 Nov-08 S&P 500 FTSE 100 MSCI (EMERGING MARKETS)

Source: Merrill Lynch

Entriq integrated with Irdeto MediaZone scaled back

Investing in areas of growth

– Pay television:

Remarkably resilient Investment to deepen/broaden subscriber base

– Internet:

Continues to grow despite weakening economy Tradus exceeding expectations Our strategy – further investing

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Portfolio Analysis*

Segmental revenue 1H09 Revenue by type 1H09

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Pay TV (44%) Technology (5%) Internet (20%) Print (31%)

*Assuming all equity-accounted investments are proportionately consolidated

Subscription (42%) Advertising (17%) Printing & Circulation (12%) E-commerce (7%) Technology (5%) Other (10%) IM & Games (7%)

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Internet Assets

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Internet: Tencent (China)

Naspers owns 35%
Included in Hang Seng Index

(June 2008)

Contribution to 1H09 core earnings

ZAR504m (1H08 R226m)

Key operational statistics

ZARm* Sept’07 Sept’08 YoY Change Revenue 1,524 3,400 123% EBITA 587 1,684 187% EBITA margin 38.5% 49.5%

* Data reflects 100% of results Jan-Jun; 1H09 ZAR/Rmnb1.131 (1H08 0.936)

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– 853m total registered IM accounts – 355m active users – 4.4m games portal accounts – 30.3m IVAS paying subscribers – 14.8m MVAS paying subscribers

Community and IM (45%) Online games (21%) SMS (15%) 2.5G (2%) Mobile Voice VAS (4%) Advertising (13%) Other (0.2%)

Revenue mix - 1H09

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Internet: Mail.ru (Russia)

Naspers owns 33%
Contribution to 1H09 core earnings ZAR38m

(1H08 R20m)

Key operational statistics:

– #1 site in Russia measured in reach and rank – New gaming portal up to 3m users – New mobile IM service, 300k users ZARm* Sept’07 Sept’08 YoY Change Revenue 138 255 85% EBITA 98 148 51% EBITA margin 71.0% 57.9%

* Data reflects 100% of results from Jan-Jun; 1H09 ZAR/US$ 7.721 (1H08 7.056)

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– New mobile IM service, 300k users – Economy impacting advertising revenues

Display advertising (58%) Barter revenues (4%) Context fees (23%) Listing fees (3%) Partnership projects (8%) Fee based services (4%)

Revenue mix – 1H09

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Internet: Allegro & Ricardo (Tradus)

Naspers acquired 100% in March 2008
Now operating in 16 countries
New launches

– Greece, Austria, Lithuania, Estonia, Romania, Bulgaria – Hungary: Vatera transaction

Key operational statistics:

ZARm* Sept’07 Sept’08 YoY Change Revenue 435 887 103% EBITA 105 251 137% EBITA margin 24.2% 28.3%

* Data reflects 100% of results; 1H09 ZAR/EUR 11.934 (1H08 9.685), 1H09 ZAR/Zloty 3.566 (1H08 2.556)

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Key operational statistics:

– Little advertising exposure – More second-hand goods sold now – Adding functionality to platforms Revenue mix – 1H09

Fixed price (73%) Auction (20%) Payment services (3%) Price comparison (2%) Classified (2%)

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Allegro & Ricardo (Tradus)

*GMV = gross merchandise volume

6-months to Sept 2008

Page views # of Transactions GMV (EUR) Allegro Poland 22% 37% 35% Aukro Czech 84% 90% 102%

September'08 – YoY growth 33BN page views 56M transactions ZAR11.9bn (€1.0bn) GMV* ZAR887m (€76M) revenue

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Molotok Russia 100%+ 100%+ 100%+ Switzerland 20% 13% 5%

Financial performance (ZARm)

435 887 251 105 200 400 600 800 1H07 1H08

Revenue EBITA

Outperforming investment plan
Cost to expand into new territories
Debt structure:
Revolving 3yr facility
Hedged interest rate at 5.5%

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Internet: Rest of operations

M-Web (South Africa)

– Disposal terminated – 318k subscribers, 41% broadband

M-Web (Africa)

– Sold to Telkom for US$63m – Expect to close April 2009

Gadu-Gadu (Poland)

– 10m unique users, 2m PCU’s

ZARm Sept ‘07 Sept ‘08 YoY Change Revenue 654 1,831 180% Allegro/Ricardo

887
Gadu-Gadu
59
24.com

145 214 48% Other 13 42

Contribution by Internet segment

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– 10m unique users, 2m PCU’s – New product launches

ibibo (India)

– JV with Tencent – Launched QQ-mail and IM services – Growth in usage across all services

24.com (South Africa)

– Strong advertising growth (61%) – 10.3m unique users

M-Web (SA & SSA) 496 629 27% EBITDA (20) 195

Allegro/Ricardo
282
Gadu-Gadu
16
24.com

(20) (38) 90% ibibo (India) (29) (41) 41% Other (97) (141) 45% M-Web (SA & SSA) 126 117 (7%)

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Pay-TV: South Africa

Sept '07 Sept '08 YoY Change Equated subscribers* 1,473k 1,649K 12% ZARm ZARm Revenue** 4,084 5,006 23% EBITDA 1,838 1,920 4% EBITDA margin 45.0% 38.4%

* Equated subs includes 47% of Compact and 32% of Select subscribers

Subscriber growth 12% YoY
Net additions over 6 months:

– Premium +3% – PVR +18% – Compact +43%

PVR reducing churn
Launched HD PVR in August

– Olympics: dedicated HDTV channel

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SA: Equated Subscribers (‘000)

* Equated subs includes 47% of Compact and 32% of Select subscribers

– Olympics: dedicated HDTV channel

Regulations

– Broadcast license issued – Enquiry into sporting events – Digital migration – MobileTV licenses not yet issued

Competition

– Anticipate new entrants

1,312 1,569 1,649 1,391 1,473 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08

22% 12% 61% 75% 17% 13% Mar 07 Mar 08 Compact Premium PVR

Digital mix

** 100% of M-Net/SuperSport included in Sept’08 (60.1% in Sept’07)

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Pay-TV: Sub-Saharan Africa

Sept '07 Sept ‘08 % change Equated subscribers 500k 630k 26% ZARm ZARm Revenue 1,400 1,941 39% EBITDA 542 665 23% EBITDA margin 38.7% 34.3%

Record subscriber growth, 26% YoY

– Despite partial loss of EPL package and increased competition

Net additions over 6 months:

– Premium +11% – PVR +31% – Compact & family +52%

Competition intensifying

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422 539 630 471 500 300 400 500 600 700 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08

Sub Sahara: Subscribers (000’s)

Mobile TV

– Now operating in 4 countries

Regulation

– Increasing

32% 19% 61% 76% 7% 5% Mar 07 Mar 08 Compact Premium PVR

Digital mix

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Pay-TV: Sub-Saharan Africa

Sub-Saharan subscribers – Sept’08

22,480 33,877 35,589 42,300 120,099 161,108 191,493 23,331 Ghana Zimbabw e Namibia Kenya Zambia Other Angola Nigeria

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Angola Pay-TV subs Nigerian Pay-TV subs

83,914 103,466 114,252 132,340 135,004 161,108 40,000 80,000 120,000 160,000 200,000 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08 191,493 121,937 99,434 90,295 153,581 130,335 50,000 100,000 150,000 200,000 Mar-06 Sep-06 Mar-07 Sep-07 Mar-08 Sep-08

Total subscribers Total subscribers

20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000

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Print – South Africa

Consumer spending weak
Advertising revenue slowing

– Up only 3% YoY (ZAR1,2bn)

To combat margin pressure:

– Closure of marginal titles – Cost focus, including headcount cuts – Gaining market share

Circulation performance varied

ZARm Sept’ 07 Sept’ 08 YoY Change Revenue 2,972 3,080 4% EBITDA 396 448 13% EBITDA margin 13.3% 14.6% Print & Book publishing

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Circulation performance varied

– Growth in emerging market titles – Daily Sun circulation stable (488,000) – Move growing strongly (166,000)

Book publishing

– Satisfactory trading Revenue mix - 1H09

Advertising (39%) Circulation (20%) Printing (20%) Books (11%) Other (10%)

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Print - International

Abril (Brazil)

– 30% stake in #1 magazine company – R71m contribution to core headline earnings – Brazilian economy sound – Advertising revenues (BRL) up 29% on 2007 – Operating margins improving – Good cash generation

* Data reflects 100% of IFRS results from Jan-Jun, 1H09 ZAR/BRL 4.711 (1H08 3.657)

Abril ZARm Sept’ 07 Sept’ 08 YoY Change Revenue 3,635 6,057 67% EBITA 372 615 65% EBITA margin 10.2% 10.2%

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Titan and BMC (China)

– Titan growing sports titles – BMC showing encouraging improvements – Outlook for print advertising subdued

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Technology

ZARm Sept ‘07 Sept ‘08 % Change Revenue 445 681 53% EBITDA 62 67 8% EBITA 51 51

Conditional access -

ZARm Sept ‘07 Sept ‘08 % Change Revenue 36 44 22% EBITDA (79) (91) 15% EBITA (89) (100) 12%

Broadband technologies -

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Irdeto shipped 8.3m units in 1H FY08
Combining individual products together as solutions – deployment in India
New software releases for - security for digital TV (cable, satellite, terrestrial), mobile TV and IPTV
Integrating Dayport and Entriq

– First deployment of combined product in Scandinavia

Reduction of Entriq cost base

– Integrating back office with Irdeto

Anticipate tough trading conditions 2H

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Highlights Financial overview Operational overview Outlook Appendix

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Outlook

Benefits from consumer spending more time at home, but advertisers cautious In much better shape than First World Consumer spending Our markets

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Market conditions present opportunities We are scaling to market conditions Ungeared balance sheet Adjusting for a changing world

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Highlights Financial overview Operational overview Outlook Appendix

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Consolidated income statement

ZAR millions US$ millions Sept '07 Sept '08 Sept '07 Sept '08 Revenue 9 587 12 652 1 359 1 639 Operating profit 2 094 1 898 297 246 Finance costs 554 (95) 79 (12) Share of equity accounted results 126 405 18 52 Profit on sale of investments

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4

Impairment of equity investments (68) (216) (10) (28)

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Income before taxation 2 706 2 026 384 262 Taxation (883) (837) (125) (108) Profit after taxation 1 823 1 189 258 154 Profit from discontinued operations 39 127 6 16 Profit/(loss) arising on discontinuance of

perations

(81) 2 568 (11) 333 Attributable to: Naspers shareholders 1 454 3 560 206 461 Minority shareholders 327 324 46 42

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Capital Expenditure

Sept '07 ZARm Sept '08 ZARm YoY Change

Land, buildings & plant 241 238 (1%) Transmission equipment 134 151 13%

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Computer & office equipment 89 104 17% Software 26 88 238% Other (vehicles, furniture) 48 49 2%

Total 519 630 21%

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Pay-TV subscriber numbers - equated

Sept '07 Sept '08 South Africa 1,473,344 1,648,719 Sub-Saharan Africa 500,463 630,277 Total Africa 1,973,807 2,278,996 SA – compact 158,749 368,864

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Sub-Saharan Africa - compact 107,314 246,595 Total compact 266,063 615,459 SA – PVR 185,703 284,562 Sub-Saharan Africa - PVR 26,748 50,581 Total PVR 212,451 335,143

SLIDE 43

Naspers Group Structure

Media24 Holdings Ltd

Welkom Yizani

Paarl Media Holdings Printing Via Africa Ltd Book publishing Phuthuma Nathi MCSA Holdings M-Net/Super Sport M-Web Holdings

20% 100% 100% 80%

Naspers Ltd MIH Holdings Ltd

100% 85% 15% 100% 95% 30.0%

Major associated companies

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Note: This is a simplified structure and only shows the significant subsidiary and associated companies

Multi Choice Africa Pay-TV ibibo (India) Internet Gadu Gadu Internet Allegro Internet Ricardo Internet Abril Printing/Publishing Mail.ru Internet

100% 35.0% 32.6% 100% 100% 100% 100% 100% 100%

Irdeto Conditional Access and Broadband Technology Tencent Internet M-Web Thailand Internet

SLIDE 44

Investor Relations Contact Details

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

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