Analyst Booklet - detailed financials - For the year ended 31 March 2018 - Naspers

 
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Analyst Booklet - detailed financials - For the year ended 31 March 2018 - Naspers
Analyst Booklet – detailed financials
For the year ended 31 March 2018
Analyst Booklet - detailed financials - For the year ended 31 March 2018 - Naspers
Important information

This report 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”, “endeavor” and similar expressions are
intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances and
should be considered in light of various important factors. 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. The key factors that could cause our actual results performance, or achievements to differ
materially from those in the forward-looking statements include, among others, changes to IFRS and the interpretations,
applications and practices subject thereto as they apply to past, present and future periods; ongoing and future acquisitions,
changes to domestic and international business and market conditions such as exchange rate and interest rate movements; changes
in the domestic and international regulatory and legislative environments; changes to domestic and international operational,
social, economic and political conditions; the occurrence of labour disruptions and industrial action and the effects of both current
and future litigation.

We are not under any obligation to (and expressly disclaim any such obligation to) revise or update any forward-looking statements
contained in this report, whether as a result of new information, future events or otherwise. We cannot give any assurance that
forward-looking statements will prove to be correct and investors are cautioned not to place undue reliance on any forward-looking
statements contained herein.

                                                                                                                                     2
Analyst Booklet - detailed financials - For the year ended 31 March 2018 - Naspers
1.Strategic review

         2. Operational review

Agenda
         3. Financial review

         4. Outlook
Analyst Booklet - detailed financials - For the year ended 31 March 2018 - Naspers
Strategic review
Analyst Booklet - detailed financials - For the year ended 31 March 2018 - Naspers
In pursuit of growth - how do we create value?
                                                                     • We pursue growth and
                                                                       create value by building
                                                                       leading companies that
                                                                       empower people and
                                  Active management of assets          enrich communities.
                                                                     • We partner with
                                                                       founders/entrepreneurs
                                                                       to build platform
                                                                       businesses which offer
                                                                       services that address
                                                                       fundamental needs.
                                                                     • We focus on high-growth
                                   Rigorous capital allocation         markets.
                                                                     • As these platforms scale,
                                                                       they provide strong and
                                                                       defensible leadership
                                                                       positions, which translate
                                                                       into healthy financials.
                                                                     • Underpinned by our
                               Strong growth and financial returns     active management of
                                                                       assets and rigorous
                                                                       capital allocation, we
                                                                       ensure we optimise our
                                                                       portfolio to create
                                                                       long-term value for
                                                                       shareholders.
                                                                                                    5
Managing assets and allocating capital for growth and financial returns

                                                             • We have a systematic
                                                               approach to how we allocate
                                                               our capital:
                                                                ‐ We typically invest in new
                                                                  businesses early on,
                                                                  focusing on opportunities
                                                                  with the potential to scale
                                                                  globally.
                                                                ‐ We often ‘double-down’ on
                                                                  existing investments,
                                                                  helping them build scale
                                                                  and market leadership.
                                                                ‐ Once we are comfortable
                                                                  about a winning
                                                                  proposition, we go ‘all-in’,
                                                                  driving these businesses to
                                                                  profitability and cash
                                                                  generation.
                                                                ‐ We also have businesses
                                                                  that are mature, profitable
                                                                  and cash generative.
                                                                ‐ In addition we have
                                                                  invested in a number of
                                                                  companies that are public.

                                                                                                 6
We have delivered well on our objectives

              FY18 Objectives                                                                     FY18 Highlights
                                                                                    Revenue up 38% (39%) YoY to US$20.1bn
           Deliver strong financials                                                Trading profit up 47% (52%) to US$3.4bn
                                                                                    Core headline earnings up 72% to US$5.81 per N ordinary share

                                                                                    Classifieds (excl. letgo) turned profitable (US$63m) and FCF positive
           Scale classifieds
           Scale classifieds (+letgo)
                              (Letgo)
                                                                                    letgo (US) achieved leadership on key metrics vs Offerup

                                                                                    Total payment value exceeded US$25.5bn, up 53% YoY
            Drive payments growth                                                   Reduced trading loss by 42% on existing footprint (in local currency)
                                                                                    Expanded credit business: invested in Kreditech and others

              Expand food delivery                                                  iFood revenue up 121% YoY to US$117m
                                                                                    Invested in Delivery Hero (US$1.3bn for 23%) and Swiggy (US$201m for 23%)

                                                                                    Increased subscriber base by 13% to 13.5m households
   Grow VE subscribers and cut costs                                                Revenue increased 8% (7%) and trading profit 29% (24%)
                                                                                    Reduced costs by over US$70m, stabilised SSA losses

Note: Numbers in brackets represent year-on-year growth in local currency, excluding M&A.

                                                                                                                                                                7
Operational review
Classifieds: clear leader in the global landscape

                                                                                                                  Global footprint
                                                                                                                                       • Global leader in online

                                                                                                                              41
                                                                                                                                         classifieds, with 17
                                                                                                                                         brands across 41
                                                                                                                          Countries3     countries.
                                                                                                                                       • 5 000 employees in
                                                                                                                                         35 offices across
                                                                                                                                         footprint.
                                                                                                                                       • Leading in 36 countries.
                                                                                                                                       • Over 330m monthly
                                                                                                                                         users worldwide, 62m
                                                                                                                                         net new listings
Mobile leadership                                                     Scale2                                                             monthly.

     Top 3 app                                    4.4                                90m                      62m                      • 90m app users, up 29%
                                                                                                                                         YoY.
              36 COUNTRIES1                 APP RATING                               Monthly                   Monthly
                                                                                    App Users              Net New Listings
1 Google play store; shopping/lifestyle categories.
2 Numbers  reflect proportionate share of users of equity-accounted investments.
3 Countries with lower than 1 000 daily unique listers (7 in total) excluded from ‘active country’ list.
                                                                                                                                                                   9
Classifieds: engagement metrics reflect continued growth

  Average monthly unique listers (MUL),(m)1                                         Average monthly paying listers (m)1                • Our teams have spent over 10
                                                                                                                                         years building a ‘top of mind’
                                                         29%
                                                                                                                                         classifieds business in the
                                                                                                                                         markets we operate.
                                                                                                                                       • Despite our considerable size,
                                                                                                                                         user engagement continues to
                                                                                                                                         reach new levels.
                                                                                                                                       • Monthly unique listers averaged
                                                                                                                                 30%     ~22m, an increase of 29% YoY.
                                                                                                                                       • We have been able to convert
                                                                                                                                         this into 2.5m monthly paying
                                                       21.8                                                                              listers, up 30% YoY.
                   16.8
                                                                                                                               2.5
                                                                                                  1.9

                   FY17                               FY18                                      FY17                           FY18

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

                                                                                                                                                                           10
Classifieds: growing far ahead of industry peers on limited monetisation

    OLX Group: average revenue/internet user (ARPIU) 1 :                        Industry peers 2 :                                                        • We continue to expand our
    monetisation countries (US$)                                                revenue growth rates (reported currency)                                    monetisation markets.
                                                            33%                                                                                           • ARPIU increased 33% YoY to
                                                                                                  64%                                                       US$1.44. Compared to peers
                                                                                                                                                            (many generating ARPIU
                                                                                                                                                            between US$13 – US$30), this
                                                                                                                                                            suggests significant upside
                                                                                                                                                            potential.
                                                                                                                                                          • EBITDA margin for
                                                                                                                                                            monetisaton countries
                                                                                                                                                            expanded from 45% to 49%.
                                                        1.44                                                                      34%
                                                                                                                                                          • Revenue growth in FY18 (last
                                         1.08                                                                                                               fiscal) was ~3x our industry
                                                                                                                                                            peers.
                          0.72
                                                                                                                                                          • Our unique portfolio mix
                                                                                        14%                                                                 allows us to sustain high
                                                                                                                       12%
                                                                                                                                                            growth.

                          FY16           FY17           FY18
                                                                                         Prior fiscal               Most recent fiscal
    EBITDA margin          45%            45%            49%
                                                                                              Industry average            OLX Group

1 OLX Group data excludes letgo. Calculated as total revenue for OLX monetisation countries (FY18: n=14), divided by the total number of internet users
 in those countries.
2 Industry peers include TradeMe, Rightmove, Schibsted Classifieds, Axel Springer, Scout24.

 Sources: Company filings, investor reports, EIU reports and Factset.
                                                                                                                                                                                           11
Classifieds: acceleration by our European leaders
                              Russia                                        Poland                                                 Brazil1                             • Avito and Poland continue to
                                                                                                                                                                         be portfolio leaders, increasing
                                                                                                                                                                         top and bottom line growth
                                                             MULs                 +23%                               MULs               +17%                             substantially YoY. Both now
    MULs                  +10%
                                                                                                                                                                         generate trading margins
                                                                                                                                                                         above 50%.
     # of                                                      #                                                      # of
   Paying                  +15%                             Paying              +20%                                Paying                         +45%
   listers                                                  listers                                                 listers
                                                                                                                                                                       • Brazil has emerged as one of
                                                                                                                                                                         our strongest growth markets.
    App                                                     App                                                     App                                                  Increased investment to
    MAUs                                 +33%               MAUs
                                                                                             +48%                                        +20%                            enhance service and product
                                                                                                                    MAUs
                                                                                                                                                                         offerings, impacted
                                                                                                                                                                         profitability to March (the
                                                                                                                                                                         business reached break-even
  Financials (RUBm)                           FY17         Financials (PLNm)2                         FY17         Financials (BRLm)                        FY17         during the year).
                                              FY18                                                    FY18                                                  FY18
                    28%                                                     60%                                                   69%
                                                                                                                                                                       • All 3 regions have been posting
                 16 350                                                                             80%                                                                  strong growth across key
                                                                                                                                103
                                           29%                                                                                                                           metrics – and delivered these
        12 719
                                                                                                                        61                                      89%      results off fairly high bases.
                                         8 802
                                 6 827                                                                                                          (26)     ( 3)

           Revenue             Trading profit                     Revenue              Trading profit                    Revenue               Trading loss
1 OLX   Brazil is a 50/50 joint venture (JV) with Schibsted Media Group.
2 Financial information    for Avito and OLX Brazil are reported publicly by other listed shareholders, whilst information for OLX Poland is not publicly disclosed.

                                                                                                                                                                                                            12
Classifieds: letgo growth exceeding expectations on limited marketing

                                                          US                                                                                           Turkey
  Mobile monthly active users (MAU), (m)                                                                                            Mobile monthly active users (MAU), (m)

                                                                                                                                                                                   • Maintained lead against
                                                                                                                                                                                     Offerup in the US, while
                                                                                                                                                                             24%     closing the gap against
                                                                                                                              20%
                                                                                                                                                                                     Sahibinden in Turkey.
                                                                                                                                                                                   • Pulled back on marketing
                                                                                                                                                                                     spend and focused on
                                                                                                                                                                                     product improvement and
                                                                                                                                                                                     user retention.
                                                                                                                                                                                   • US: annualised average
                                                                                                                                                                                     mobile MULs +42% YoY.
                                                                                                                                                                                     Started testing
                                                                                                                                                                                     monetisation features with
                                                                                                                                                                                     excellent results so far.
                                                                                                                                                                                   • Turkey: focus on product
         Mar-16

                           Jul-16
                                    Sep-16
                                             Nov-16

                                                               Mar-17

                                                                                 Jul-17
                                                                                          Sep-17
                                                                                                   Nov-17

                                                                                                                     Mar-18
Jan-16

                  May-16

                                                      Jan-17

                                                                        May-17

                                                                                                            Jan-18

                                                                                                                                    Sep-16
                                                                                                                                    Mar-16

                                                                                                                                      Jul-16

                                                                                                                                    Nov-16

                                                                                                                                    Mar-17

                                                                                                                                      Jul-17
                                                                                                                                    Sep-17
                                                                                                                                    Nov-17

                                                                                                                                    Mar-18
                                                                                                                                     Jan-16

                                                                                                                                    May-16

                                                                                                                                     Jan-17

                                                                                                                                    May-17

                                                                                                                                     Jan-18
                                                                                                                                                                                     paid off, annualised
                                                                                                                                                                                     average mobile MULs
                                                                                                                                                                                     increased 53% YoY.
                                       OfferUp                                        letgo                                                       Sahibinden    letgo

Note: letgo, OfferUp & Sahibinden data from leading third-party data provider.
                                                                                                                                                                                                                  13
Classifieds: extending our business model
                                                                             • Started off focusing on building
                                                                               classic horizontal platforms, making
                                                    Specialised convenient     it easy for anyone to buy and sell
                                                                               almost anything and thus creating a
                                                         transactions          “win-win” environment.
                                                                             • Expanded into vertical offerings
                               Vertical offerings                              through brands such as Otomoto
                                                                               and Strada in the vehicle space, as
                                                                               well as Otodom and Storia in the
                                                                               real estate space. Currently have
                                                                               ~15 vertical brands across 31
                                                                               countries.
 Classic horizontal platform
                                                                             • Extending business model by
                                                                               focusing on ‘convenient
                                                                               transactions’ models that aim to
                                                                               further enhance the customer
                                                                               experience - acquired/invested in
                                                                               WeCashAnyCar and Expat Wheels
                                                                               of Dubai and the global consumer-
                                                                               to-business (C2B) platform Frontier
                                                                               Car Group.
                                                                             • Also successfully tested delivery
                 2008                     2012                  2018           services in a number of markets
                                                                               and plan to roll it out more widely.

                                                                                                                 14
Payments: scaling the core business, building organisational capabilities

 Global footprint – operations in 17 markets                                 Average daily transactions (m)         • 1 API, 250 payment methods.
                                                                                                                    • PayU transforming from a payments
                                                                                                              28%
                                                                                                                      business to a broader fintech
                                                                                                                      services business.
                                                                                                                    • As part of this process, invested:
                                                                                                         2.04         − US$99m for a 37.6% stake in
                                                                                     1.60                                 Kreditech, a leading technology
                                                                                                                          group for digital consumer
                                                                                                                          credit, to bring innovative credit
                                                                                                                          services to underserved markets;
                                                                                    Mar17               Mar18
                                                                                                                      − US$100m for a 22.6% stake in
                                                                                                                          Remitly, a technology-driven
                                                                             Total payment value (US$bn)                  remittance business; and
                                                                                                                      − also added Paysense and Zest
       Core                Credit          Remittances              Other                                     53%         Money to extend our fintech
     payments             services
                                                                                                                          service offering.
                                                                                                                    • Total payments value (TPV) up 53%
                                                                                                                      YoY to US$25.5bn, with over 650m
                                                                                                         25.5         transactions processed during the
                                                                                     16.7                             year.
                                                                                                                    • PayU India, which accounts for 47%
                                                                                                                      of PayU group TPV, reported an 84%
                                                                                     FY17                FY18         increase YoY in total payment value.
Note: Digital Currency Group forms part of the Naspers Ventures portfolio.
                                                                                                                                                               15
Food delivery: leadership positions in many large geographies

  Global footprint - leadership position in 40 markets                                                                                               • Increased focus on online food
                                                                                              GMV (US$m)1                              65%
                                                                                                                                                       delivery services with 2 notable
                                                                                                                                                       minority investments in the year:
                                                                                                                                                        ‐ Delivery Hero: invested US$1.3bn
                                                                                                                                                          for 23% effective stake (22% fully
                                                                                                                                                          diluted). The business continues
                                                                                                                                                          to build its leadership across the
                                                                                                                                                          42+ countries where they operate
                                                                                                                                                          (currently lead in 36); and
                                                                                                                                                        ‐ Swiggy: Invested US$121m during
                                                                                                          FY17                       FY18                 FY18 and committed to another
                                                                                                                                                          US$80m in June 2018. Following
                                                                                              Orders (m)1                                                 this, the group will hold a 24%
                                                                                                                                       65%                effective interest (23% fully
                                                                                                                                                          diluted).
                                                                                                                                                     • Cumulative annualised GMV for the
                                                                                                                                                       food-delivery segment increased
                                                                                                                                                       65% YoY.
                                                                                                                                                     • Cumulative annualised order
                                                                                                                                                       volumes increased 65%.
                                                                                                                                                       − Delivery Hero +46% YoY
                                                                                                         FY17                       FY18               − iFood +116% YoY

1 GMVis calculated in US$ using average exchange rates for respective years. Delivery Hero’s financial year end is December; however data reflects
the April 2017 – March 2018 period to align with iFood and Swiggy. GMV and number of orders exclude Mr D, which is a subsidiary of Takealot.
                                                                                                                                                                                           16
Food delivery: iFood grew strongly across all key metrics

                                                                                                                                                  • iFood, a subsidiary of Movile,
                                                                                                                                                    is a leading online food-
                                                                                                                                                    delivery platform in Latin
  GMV (US$m)1                                                               Orders (m)1                                                             America.
                                                     111%                                                                  116%                   • Business continued to grow
                                                                                                                                                    strongly across all key metrics
                                                                                                                                                    – order volume, average take
                                                                                                                                                    rates and customer retention.
                                                                                                                                                  • Recorded FY18 order volume
                                                                                                                                                    growth of 116% YoY.
                                                                                                                                                  • Preferred destination for food
                                                                                                                                                    delivery in Brazil, where the
                                                                                                                                                    number of restaurants, order
                                                                                                                                                    numbers and GMV more than
                                                                                                                                                    doubled YoY.

                FY17                            FY18                                      FY17                          FY18
1 Datareflects 100% of the underlying operations, irrespective of our effective interest. GMV is calculated in US$ using average exchange rates
 for respective years.

                                                                                                                                                                                      17
B2C etail: solid growth and improving economics
                                                                         2

                                                                                                                                                               • eMAG achieved strong GMV growth
                                                                                                                                                                 in its core markets Romania,
                                                                                                                                                                 Hungary, and Bulgaria.
YoY organic GMV growth 1

                                                                                                                                                               • Takealot extended leadership in SA
                             FY17                          34%                                            FY17                     34%                           and expanded reach outside core
                                                                                                                                                                 categories. Naspers invested an
                                                                                                                                                                 additional US$74m in April 2017 to
                                                                                                                                                                 acquire a controlling stake (resulting
                             FY18                          34%                                            FY18                                      57%          in the consolidation of the entity),
                                                                                                                                                                 followed by another US$128m
                                                                                                                                                                 investment in Dec 2017 to take the
                                                                                                                                                                 effective stake to 96% (91.2% fully
                                                            v
                              Note: Nominal growth: 42% (FY18) and 30% (FY17)                             Note: Nominal growth: 70% (FY18) and 33% (FY17)
                                                                                                                                                                 diluted).
                                                                                                                                                               • Disposed of Souq in Middle East and
                                                                                                                                                                 Konga in Nigeria to improve long-
                                          FY17                           FY18                                       FY17                           FY18
                                                                                                                                                                 term returns. Also finalised closure
                                                                                                                                                                 of Markafoni in Turkey.
 EBITDA as % of GMV

                                                                         0.3%                                                                                  • Announced disposal of 12.4%
                                                                                                                                                                 (11.18% fully diluted) stake in
                                                                                                                                                 -16.9%          Flipkart, to US-based retailer
                                          -0.7%                                                                                                                  Walmart in May 2018. Subject to
                                                                                                                                                                 regulatory approval, the US$2.2bn
                                                                                                                   -24.8%
                                                                                                                                                                 in proceeds represents an IRR of
                                                                                                                                                                 ~32%.
                           1 GMV   in local currency, reflecting 100% of underlying businesses for the review period. Nominal growth reflects growth in US$.
                           2 eMAG    Romania.
                                                                                                                                                                                                     18
VE: encouraging subscriber growth, changing mix
                                                                                                             • Macroeconomic environment
        Video entertainment subscriber homes (‘000)                    Change in subscriber mix (‘000)         remained a challenge and business
                                                                                                               continued to face competition from
                                                                 13%                                           international players.
Total      8 059      10 225      10 411      11 942          13 476                                         • Segment nonetheless recorded good
                                                                                                1 921
                                                                                                               growth, adding just over 1m DTH and
                                                                                                               520k DTT subscribers, to bring the
                                                                              1 962                            total base to 13.5m households across
                                                              3 522
                                                                                                               the African continent.
                                                       +17%                                     3 520
                                               3 001                                                         • DTH growth in SSA continued to
                       2 256       2 404                                      3 181                            benefit from our value strategy, in SA
                                                              3 033                                            growth was driven by the Access tier.
            817                                2 583 +17%                                                    • DTT growth benefited from the launch
                       2 563       2 275                                                                       of the popular GOtv Max package and
           2 234                                                                                               the partial analogue switch-off in
                                                                                                               Zambia.
                                                                                                8 035
                                                       +9%                                                   • Sizeable market remains at lower-end.
                                                                              6 799
                                               6 358          6 921
                                   5 732                                                                       This segment now accounts for 60% of
           5 008       5 406
                                                                                                               total subscribers.
                                                                                                             • The focus of our VE business remains
                                                                                                               on driving subscriber growth,
                                                                                                               investing in local content, optimising
           FY14        FY15        FY16        FY17           FY18            FY17              FY18
                                                                                                               cost structures and reinvesting for the
                                                                                                               online future.
                      SA DTH      SSA DTH      SSA DTT                   Premium      Compact    Lower-end

                                                                                                                                                         19
VE SA: solid all-round performance in tough macro environment
               SA net additions (‘000)                                                               •   Added >500k subscribers,
                                                                                                         approaching a total base of 7m
                                                                                                         households.
                         309                     6 month average    316    311
                                                                                  278         286    •   Mass market growth trend continues,
                248                                                                                      Premium tier growth is declining and
                                         232
                                                                                                         Compact tier growth is starting to
                                166               156     169                                            stabilise.

                                                                                                     •   Change in customer mix resulted in
                                                                                                         ARPU declining marginally from R353
                                                                                                         to R344 year on year.
               1H14     2H14   1H15      2H15    1H16    2H16       1H17   2H17   1H18        2H18
                                                                                                     •   PVR’s have increased 9% YoY and the
                                                                                                         1.4m customers at present represent
                                                                                                         an 81% penetration on Premium and
               PVR’s (‘000)                               ARPU (ZAR)                                     12% penetration on Compact. Strong
                                                                                                         retention and ARPU benefit.
                                            9%                                           3%
                                                                                                     •   Combined Showmax Africa and DStv
                                         1 418                     353                                   Digital Media into Connected video
                      1 295                                                        344
                                                                                                         business to drive increased focus on
                                                                                                         online/OTT customer offering.
                                                                                                     •   Successfully renewed key
                                                                                                         entertainment and sport rights, e.g.
                                                                                                         EPL, PSL and UEFA Champions League
                                                                                                         and invested ZAR5.8bn in local
                      FY17               FY18                      FY17            FY18                  content (general and sport).
                                                                                                                                                20
VE SSA: turnaround continues

              SSA DTH net additions (‘000)                                                            •   Ongoing turnaround in SSA,
                                                                                                          despite macro challenges.
                                                                                               418
                                                                                                      •   Active customer base for the
                          215              208   6 month average
                                                                                                          SSA business (both DTH and
                 108             121                        33     126      182    32                     DTT) as at FY18 was 6.6m
                                                                                                          households, representing 49%
                                                                                                          of the group’s total subscriber
                                                  (321)                                                   base.
                                                                                                      •   Net DTH additions were
                 1H14     2H14   1H15     2H15    1H16    2H16     1H17     2H17   1H18        2H18       particularly strong during 2H18,
                                                                                                          following the implementation of
                                                                                                          the next phase of our ‘value
                                                                                                          strategy’ (i.e. pricing,
             DTH PVR’s (‘000)                               DTH ARPU (US$)
                                                                                                          promotions etc.).
                                          74%
                                                                                          -12%        •   ARPU reduction is due to Naira
                                        454                                                               devaluation and value strategy
                                                                                                          price downs.
                                                                      26
                                                                                          23          •   Removed substantial costs from
                    261
                                                                                                          the business by renegotiating
                                                                                                          international content
                                                                                                          agreements, dropping non-
                                                                                                          performing content and
                   FY17                 FY18                         FY17               FY18              reducing local football rights.

                                                                                                                                             21
Financial review
FY18 financial highlights

 1   Accelerated growth in revenue and trading profit

 2   Ecommerce losses narrowing, margins improving

 3   Classifieds turned profitable and cash generative (excluding letgo)

 4   Steady results from video entertainment, sub-Saharan Africa losses stabilised

 5   Tencent performance contributed to healthy earnings growth

 6   Strong balance sheet + healthy returns underpin our conviction to seek out further opportunities

                                                                                                        23
Synopsis of financials
 Revenue (US$bn)1                                                       Development spend (US$bn)1                                          Trading profit (US$bn)1,2

                                                                                                                                                                                    47% (52%)
                                             38% (39%)
                                                                                                               -12% (-12%)

                                                                                                                                                                                      3.4
                                             20.1                                    1.1                        1.0
                  14.6                                                                                                                                     2.3

                  FY17                       FY18                                   FY17                       FY18                                      FY17                        FY18

 Core headline earnings (US$bn)2                                        Core HEPS (USc)2                                                    DPS (ZAR)

                                             72% (67%)                                                                72%                                                              12%

                                                                                                                  581
                                              2.5
                                                                                     337                                                                  5.80                        6.50
                  1.5

                 FY17                        FY18                                   FY17                         FY18                                    FY17                        FY18

1 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.
2 FY17   restated for the group’s change in the calculation of trading profit and core headline earnings regarding Tencent’s digital content amortisation.

                                                                                                                                                                                                             24
Ecommerce and Tencent underpin revenue growth
                                                                                                                                                     • Internet revenues account for 79%
 YoY revenue growth rate (%)1                                        FY17        Revenue by segment (US$m)1                                            of group revenues (73% in FY17).
                                        56%                          FY18                                                                            • Classifieds, B2C and food delivery
                                  47%                                                                            Social & internet platforms (61%)     contributed meaningful growth,
             39%          36%                                                                                                                          resulting in a 9% acceleration of the
    29%                                                                                                          Ecommerce (18%)
                   27%                                                                                                                                 ecommerce growth rate YoY (i.e.
                                                7%    7%
                                                                      1%                                         Video entertainment (18%)             36% vs 27% reported in the prior
                                                                                                                                                       year).
                                                              (1%)                                               Media and other (3%)
     Naspers       Ecommerce      Social &        Video         Media                                                                                • Social & internet platforms
      group                       internet    entertainment                                                                                            increased revenue by 56% YoY, a 9%
                                  plaforms
                                                                                                                                                       acceleration. Tencent was the
                                                                                                                                                       major driver, with healthy growth
 Incremental revenue by segment, YoY (US$m)1                                                                                                           across all revenue streams resulting
                                                                                                                                                       in 56% revenue growth in local
                                                                                                                                                       currency.
  YoY change (%)                36%             56%                  7%           1%               -3%               5%             38% (39%)
                                                                                                                                                     • VE sustained revenue growth of 7%
                                                                                                                                                       YoY, driven by a 13% growth in the
                                              4 250             232             5              (477)              666                                  subscriber base. A stronger ZAR
                            859
                                                                                                                                                       impacted positively, but further
                                                                                                                                  20 097               currency weakness in Nigeria and
        14 562
                                                                                                                                                       Angola had the reverse effect.

            FY17         Ecommerce      Social & internet     Video           Media        M&A and other         Forex             FY18
                                                                                                                                                     • The disposal of Allegro in FY17 had a
                                           platforms      entertainment                                                                                negative impact of US$327m on
                                                                                                                                                       revenue growth.
1 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.
                                                                                                                                                                                               25
Ecommerce growth accelerating
Constant currency revenue growth by type (%)1                                                                                                           • Ecommerce growth amounted to 36%,
                                                                                                                                                          a 9% acceleration on the prior year.
                                                                                                                                                        • Classifieds continue to grow strongly,
                                                                                                                                  187%                    but off a much higher base. Revenues
                                                                                                                                                          are trending toward the US$1bn mark.
                                                                                                                                          121%          • Travel growth rates in the prior year
                                                                                                                                                          benefited from both ibibo and MMT
                                                                                                                                                          successfully scaling the hotel booking
                                                                                                                                                          business from a very low base.
                                64%                      62%                                                                                            • PayU accelerated its growth to 37%,
                                                                                                                                                          with payment volumes growing a
                                                                                                                                                          healthy 53%.

                                                                                                                                                        • Healthy growth in etail was
               36%                      35%                                               37%                     36%                                     underpinned by meaningful GMV
                                                                                 32%
                                                                                                                                                          growth across all our businesses.
        27%
                                                                 21%                                                                                    • iFood, which benefited from a 116%
                                                                                                          21%
                                                                                                                                                          growth in orders, was the main driver
                                                                                                                                                          of the 121% growth in food delivery
       Ecommerce                Classifieds                 Travel                Payments                    Etail              Food delivery            revenues. (These numbers were not
                                                                                                                                                          affected by Delivery Hero and Swiggy,
                                                               FY17                       FY18                                                            as these investments were made in
1 Results  reported on an economic-interest basis, i.e. equity-accounted investments are proportionately consolidated, reflecting year-on-year growth     FY18 and thus excluded here as M&A).
  in local currency, excluding M&A. Note: Allegro was sold in FY17, resulting in the marketplace segment falling away. FY17 revenue growth in trave
l was boosted by the launch of the India hotel segment.
                                                                                                                                                                                                26
Diversified business mix – ongoing shift
  FY18 Revenue by geography1                                                   FY18 Revenue by type1                                • Diversity of revenue streams reduce
                                                                                                                                      the risk of exposure to any one
                                                                                                                                      territory/currency or business model.
                                                                                                                                    • 84% (FY17 80%) of revenues are now
                                                                                                                                      earned outside South Africa.
                                                                                                                                    • Annuity income (i.e. subscription
                                                                                                                                      revenues, IVAS and gaming)
                                                                                                                                      accounted for 55% of revenues, down
                                                                                                                                      1% YoY due to the negative impact of
                                                                                                                                      currency weakness in SSA on US$-
                                                                                                                                      reported subscriptions revenues.
                                                                                                                                    • Advertising revenue, which is cyclical
                                                                                                                                      in nature, is only 13% of total revenue.

                        Asia (65%)                                                         IVAS & games (40%)
                        South Africa (16%)                                                 Subscription (15%)
                        Europe (10%)                                                       Ecommerce (19%)
                                                                                           Advertising (13%)
                        Rest of Africa (5%)
                                                                                           Print, circulation & distribution (1%)
                        Latin America (2%)                                                 Technology (1%)
                        Other (2%)                                                         Other (11%)

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

                                                                                                                                                                           27
Development spend on downward trend as businesses turn profitable
  Development spend (US$m)1
                                                                                                                     -12% (-12%)                     • Development spend reflects the
                                                                     1 084                                                                             trading losses incurred by businesses
                                                                                                                     956
                                                                      427                                                                              yet to reach scale.
                       961                                                                                           372
                                                                                                                                                     • Our proportionate share of
                                                                      657                                            584                               development spend of equity-
                                                                                                                                                       accounted investments (i.e. the
                                                                                                                                                       difference between development
                      FY16                                           FY17                                            FY18                              spend on an economic interest and
                                                                                                                                                       consolidated basis), amounted to
                                                      Older investments          New investments
                                                                                                                                                       US$287m (US$223m in FY17).
                                                                                                                                                     • This number does not impact our
  Incremental development spend by segment, YoY (US$m)1                                                                                                cash flow as losses incurred by
                                                                                                                                                       equity-accounted investments are
                                                                                                                                                       funded by the capital already raised.
   YoY change (%)              -18%                   -14%             -7%                27%                   2%              -12% (-12%)
                                                                                                                                                     • Spending on new investments
                                                                                                                                                       decreased by US$55m (13%) and is
                           (116)               (11)                                     61                 18
                                                                    (80)                                                                               mainly related to lower spend in
       1 084                                                                                                                                           letgo, partially offset by investments
                                                                                                                               956                     in Delivery Hero, Swiggy, Showmax
                                                                                                                                                       Poland and Kreditech.
                                                                                                                                                     • We also saw an 11% decline
        FY17            Ecommerce             Video          M&A and Media      Equity accounted          Forex               FY18                     (US$73m) in funding of older, more
                                          entertainment                           investments
                                                                                                                                                       established businesses, most notably
                                                                                                                                                       an 18% reduction in classifieds spend
1 Developmentspend represents trading losses of developing businesses yet to reach scale. Results reported on an economic-interest basis, i.e.         (excluding letgo).
equity-accounted investments are proportionately consolidated. Numbers in brackets represent year-on-year growth in local currency, excluding M&A.
                                                                                                                                                                                                28
Consolidated development spend also trending downwards
  Development spend (US$m)                                                                               -22% (-17%)                 • Consolidated development spend
                                                                       861                                                             was down 17% YoY (US$192m) as
                                                                                                                                       the ecommerce businesses
                                                                                                           669
                                                                       427
                                                                                                                                       continued to scale, resulting in
                        708                                                                                271                         improved profitability.
                                                                       434                                 398                       • Funding of older, more established
                                                                                                                                       businesses declined 8% or
                                                                                                                                       US$36m.
                      FY16                                            FY17                                 FY18
                                                                                                                                     • Development spend for new
                                                 Older investments             New investments                                         businesses was down 22% YoY, a
                                                                                                                                       decrease of US$157m.
 Incremental development spend by segment, YoY (US$m)                                                                                • Funding of DTT and Showmax
                                                                                                                                       Africa are no longer included in
                                                                                                                                       development spend.
   YoY change (%)               -18%                 -14%                28%             -10%         2%               -22% (-17%)

                              (116)
                                                 (11)                   5              (85)      15

        861
                                                                                                                        669

        FY17             Ecommerce Video entertainment               Media            M&A        Forex                 FY18

Numbers in brackets represent year-on-year growth in local currency, excluding M&A.

                                                                                                                                                                            29
Trading profit – a marked improvement on last year
 Incremental trading profit by segment, YoY (US$m)1
                                                                                                                                                     • The YoY trading profit growth rate
 YoY change (%)             24%                33%              24%             -100%                  -8%              5%          47% (52%)          accelerated by 15% (in local currency,
                                                                                                                                                       excluding M&A), from 37% in the prior
                                                                                (6)              (185)                                                 year to 52% this year.
                                           897                67                                                    115
                         193                                                                                                                         • Meaningful reductions in losses from
                                                                                                                                     3 403             classifieds, payments and the travel
         2 322                                                                                                                                         businesses improved ecommerce’s
                                                                                                                                                       profitability.

         FY17        Ecommerce       Social & internet       Video            Media           M&A & other          Forex             FY18
                                                                                                                                                     • Tencent’s strong operating
                                        platforms        Entertainment                                                                                 performance, i.e. 33% YoY in local
                                                                                                                                                       currency boosted the contribution by
                                                                                                                                                       social & internet platforms and the
 Split by segment (US$m)                                                    Trading profit growth by segment YoY (%)1                                  group’s overall trading profit.
                                                                                                                                            FY17
                                                                                                                                            FY18
                                                                                                                                                     • Video-entertainment’s trading profit
                                                                                       52%                                                             increased 24% as the SA business
                                                                                                                                  42%                  maintained profitability and losses in
                                                                               37%                                                       33%
                                     Internet (89%)                                                      24%               24%                         sub-Saharan Africa stabilised.

                                     Video entertainment (11%)                                                                                       • The disposal of Allegro in FY17 had a
                                                                                                (5%)                                                   negative impact of US$137m on
                                                                                                                (32%)                                  trading profit in the current year.
                                                                              Naspers group     Ecommerce          Video     Social & internet
                                                                                                               entertainment    platforms

1 FY17restated for the change in the calculation of trading profit regarding Tencent’s digital content amortisation.
 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.
                                                                                                                                                                                                30
Improving operating leverage across ecommerce
                                                                                                                                                          • Total ecommerce trading losses
 YoY change in trading profit margins (%)1
                                                                                                                               TP Margin FY17               reduced to US$673m, with the
                                                                                                                                                            negative trading margin improving
                                                                                                                               TP Margin FY18
                                                                                                                                                            from -35% last year to -19% this year.
                                                                                                                                                          • Margins improved across the
   5%                                                                                                                                                       ecommerce segment – the only
                                                                                                                                                            exception being food delivery, where
-15%                                                                                                                                                        we stepped up our investment in
                                                                                                                                                            iFood to expand into Mexico and
                                                                     3%
                                                                                                                                       (27%)                Argentina.
-35%
                                                                                                                                                          • Classifieds accelerated revenue
                       16%                                                                                        18%                                       growth and more than doubled
-55%                                                                                                                                                        trading profits. The segment turned
                                                                                                                                                            profitable (excluding letgo).
                                                                                                                                                          • Our share of MMT’s losses reduced
-75%
                                                                                           49%                                                              19% YoY as the business benefited
                                              59%                                                                                                           from healthy growth in gross bookings
                                                                                                                                                            and transaction volumes.
                                                                                                                                                          • Including the new investments in
               Ecommerce                Classifieds                Etail               Travel             Payments2           Food delivery                 Remitly and Kreditech, payments
                                                                                                                                                            improved its negative trading margin
                                                                                                                                                            from -37% to -19%.
1 Results   exclude Allegro and Flipkart and are reported on an economic-interest basis. Equity-accounted investments are proportionately consolidated.
2 US$8m     in corporate IT charges, which are not directly associated with payments operations, have been excluded from the FY18 trading margin.

                                                                                                                                                                                                     31
Profitable ecommerce contribution now equal to VE

                                                                                                                                              • The graphs reflect the performance of
Financial progress of profitable ecommerce entities (US$m)1                                                                                     our current portfolio and exclude the
                                                                                                                                                impact of profitable businesses that
                                                                                                                                                have been disposed of (such as
                                                                                               137% (77%)
                                                                                                                                                Allegro in FY17).
                                                                                             1 656                                            • Trading profit from profitable
                                                                                                                                                businesses increased 52% YoY, on
                                                                                                                                                revenue growth of 77%.
                                                                                                                                              • eMAG Romania (etail) became
                                                                                                                                                profitable during the year, which has
                                                                                                                                                been a major driver of the revenue
                                                                                                                                                growth in profitable businesses, as
                                                     698                                                                                        well as etail being the largest revenue
                                                                                                               54% (52%)                        segment.
            443
                                                                                                             352
                          122                                       229

                  FY16                                     FY17                                      FY18
                                                      Revenue          Trading profit
1 Results
        are 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. FY16 and FY17 numbers exclude revenue and trading profit associated with
 disposed entities, reflecting amounts on a like-for-like basis.

                                                                                                                                                                                      32
Classifieds: OLX turned profitable and FCF generative
  OLX group revenue (US$m)1                                                         OLX group trading profit/(loss) (US$m)1                                      • The segment (excluding
                                                                                                                                                                   letgo) turned profitable,
                                                                                                                                                                   mainly due to higher
                                                         46% (34%)                                                                                                 revenues and savings in
                                                                                                                                                                   marketing spend (also in our
                                                          624                                                                                                      joint ventures).
                                                                                                                                             181% (156%)         • Revenue growth was
                                                                                                                                                                   underpinned by strong
                                                                                                                                                                   growth in Avito and
                                                                                                                                              63
                                                                                                                                                                   European markets (led by
                                  426                                                                                                                              Poland, Ukraine and
                                                                                                                                                                   Romania), as well as
                                                                                                                       (78)                                        increased levels of
                                                                                                                                                                   monetisation.

                                                                                                 (192)
            266

            FY16                  FY17                   FY18                                    FY16                  F17                   F18

1 Results
        reported are on an economic-interest basis, i.e. equity-accounted investments are proportionately consolidated. Numbers in brackets represent YoY
 growth in local currency, excluding M&A. All numbers exclude letgo. FY16 results reflect pro-forma numbers, assuming the consolidation of Avito for the full-
 year.
                                                                                                                                                                                                  33
Payments: strong revenue growth and margin improvement

Revenue and trading loss (US$m)1                                                                                                                   •   Payments continue to grow
                                                                                                                                                       and scale toward
                                                                                                                                                       profitability.
                                                                                                       58% (37%)
                                                                                                                                                   •   Revenue growth of 37% was
                                                                                                                                                       driven by a 27% increase in
                                                                                                        294
                                                                                                                                                       transactions and a 53%
                                                                                                                                                       increase in total payment
                                                                                                                                                       volume to more than
                                                          186                                                                                          US$25bn.
            140                                                                                                                                    •   Losses narrowed and
                                                                                                                                                       negative margins narrowed
                                                                                                                             19% (53%)                 from -37% to -19%.

                               (59)                                          (69)                                          (56)

                         TP Margin -42%                               TP Margin -37%                                 TP Margin -19%

                    FY16                                           FY17                                          FY18

                                                         Revenue           Trading loss
1 US$8min corporate IT charges, which are not directly associated with payments operations, have been excluded from the FY18 trading loss above.
Information is reflected on an economic-interest basis; numbers in brackets represent YoY growth in local currency, excluding M&A.

                                                                                                                                                                                     34
Food delivery: scaling fast and delivering topline growth
                                                                                                                                                      • Food delivery trading losses
Food delivery (segment results), (US$m)1                                          iFood – investing in further growth (US$m)                            increased YoY due to
                                                                                                                                                        iFood’s more aggressive
                                            213% (121%)                                                                                                 marketing strategy aimed at
                                                                                                                                                        attracting new customers
                                                166                                                                                                     and accelerating growth.
                                                                                                                            121% (121%)
                                                                                                                                                      • Delivery Hero reported a
                                                                                                                                117                     strong set of FY17 results,
                                                                                                                                                        growing revenues by 60%,
                                                                                                                                                        driven by a 48% increase in
                                                                                                                                                        order numbers YoY to
                                                                                                                                                        292m.

           53                                                                                53

                             5                                                                               5

                                                              (30)                                                                              (6)

                   FY17                               FY18                                        FY17                                   FY18

                      Revenue         Trading (loss)/profit                                             Revenue         Trading (loss)/profit
1 Information   is reflected on an economic-interest basis; numbers in brackets represent YoY growth in local currency, excluding M&A.
                                                                                                                                                                                       35
Travel: cost-saving opportunities created by the MMT/ibibo merger

 Revenue and trading loss (US$m)1                                                                                                                              • MakeMyTrip (MMT) solidified
                                                                                                                                                                 its position as leading online
                                                                                                           124% (21%)                                            travel agency in India and
                                                                                                                                                                 seized cost-saving
                                                                                                             276                                                 opportunities created by the
                                                                                                                                                                 merger with ibibo last year.
                                                                                                                                                               • In May 2017, Naspers
                                                                                                                                                                 contributed US$132m (40%)
                                                                                                                                                                 in a US$330m funding round
                                                              123                                                                                                to support further growth.
                91
                                                                                                                                                               • MMT continues to focus
                                                                                                                                31% (21%)                        investment on the under-
                                                                                                                                                                 penetrated high-growth
                                  (89)                                           (88)                                           (61)                             online hotels segment.
                                                                                                                                                               • At 4QFY18 (Mar) MMT
                                                                                                                          TP Margin -22%
                                                                                                                                                                 reported 167m total unique
                           TP Margin -98%                                 TP Margin -72%
                                                                                                                                                                 visitors and 18m monthly
                                                                                                                                                                 active mobile users.
                       FY16                                           FY17                                           FY18

                                                     Revenue                          Trading loss
1 Informationis reflected on an economic-interest basis; numbers in brackets represent YoY growth in local currency, excluding M&A on a like-for-like basis.
 Naspers incorporates MMT results on a 3-month lag basis. FY16 and FY17 reflects the ibibo results prior to the MMT/ibibo merger.

                                                                                                                                                                                                  36
VE: subscriber growth and cost optimisation drive growth
Video entertainment financials (US$m)                                                                     Revenue
                                                                                                                           •   Financials impacted by local currency
                                                                                                          Trading profit       pricing vs. US$ input costs.
                                                                                            8% (7%)                        •   The segment reported 8% revenue
                                                                                                                               growth (7% in local currency) with
                                                                                           3 680                               higher subscription revenues – due
           3 413                                           3 401
                                                                                                                               to higher subscriber base and annual
                                                                                                             29% (24%)         price increases.

                                                                                                                           •   Overall profitability improved 29%
                                                                          287                                                  (24% in local currency) as revenue
                               610                                                                            369              growth was supplemented by cost
                     FY16                                          FY17                            FY18                        optimisation initiatives.
                                                                                                                           •   The decline in capex is due to the
                                                                                                                               business being at the end of the DTT
   Capital expenditure (US$m)                                         Programming and production costs (US$m)                  investment cycle and our new
                                                                                                                5%             customer care and billing platforms
                                                                                                                               being largely completed in the prior
            161                                                                                             1 246              year.
                                                         42%                             1 191
                                  107                                                                                      •   Programming costs largely increased
                                                                                                                               due to additional investment in local
                                                        62                 1 052                                               content.

           FY16                  FY17                 FY18                 FY16           FY17              FY18

 Numbers in brackets represent YoY growth in local currency.
                                                                                                                                                                    37
VE: solid performance from SA, despite challenges SSA losses stabilised

                      ZAR strengthened vs US$ …                     … which, together with subscriber growth, boosted results (US$m)                           •   Higher SA subscriber
                                                                                                                                     8% (3%)
                                                                                                                                                                   revenue (9% sub growth,
                             FY16         FY17          FY18                                                                                                       ~3% price hikes) and
                                                                                                                                   3 145                           content savings, boosted
                                                         8%                                         2 899
South Africa

                                                                          2 604                                                                                    by a stronger ZAR, drove
                                                                                                                                                                   profitability.
                                            -1%                                                                                                    15% (6%)
                                                                                                                                                               •   The SA business generated
                            -25%                                                                                                                                   US$522m in free cash flow.
                                                                                                                  738                           851
                                                                                         701
                                                                                                                                                               •   13% profit growth
                                                                                  FY16                     FY17                          FY18                      organically offset by FX
                                                                                                Revenue           Trading profit                                   impact.
                                                                                                                                                               •   Savings from the
                      Naira continues to weaken…                  ... but control and renewed sub growth led to some stability (US$m)
                                                                                                                                                                   elimination of non-
                                                                                                                                                                   performing content also
                            FY16         FY17          FY18                                                                         1% (10%)                       contributed to losses
Sub-Saharan Africa

                                                                          1 135                                                                                    stabilising.
                            -14%                                                                     964                           975
                                                       -25%                                                                                                    •   Trapped cash reduced
                                                                                                                                                  -2% (+13%)
                                                                                                                                                                   from US$289m in FY17 to
                                         -44%
                                                                                                                                                                   US$131m (mainly Angola
                                                                                         (38)                                                                      and Zimbabwe) due to
                                                                                                                  (358)                         (364)
                                                                                                                                                                   liquidity improvements in
                                                                               FY16                        FY17                          FY18                      Nigeria.
                     Reflecting change in average rates for the
                     reporting periods                                                          Revenue            Trading loss
                                                                                                                                                                                                38
Social & internet platforms: healthy contributions, investing for growth
                                                                                                                                                • Tencent delivered revenue of
                                                                                                                                                  RMB238bn which translated into top-
                                                                                                                                                  line growth of 56% YoY. Growth was
 Tencent revenue (RMBm)1                                                   Mail.ru revenue (RUBm)2                                                across all revenue segments.
                                                          56%                                                                       34%

                                                     237 760                                                                   57 469           • Growth in Tencent’s operating profit
                                                                                                                                                  was lower at 41% YoY due to higher
                                                                                                         42 751                                   channel costs in smart phone games
                               151 938                                              37 227
         102 863                                                                                                                                  and investment in content.

                                                                                                                                                • We trimmed our Tencent holding by
              2015              2016                   2017                         2015                  2016                  2017              selling a 2% stake in March this year
                                                                                                                                                  for proceeds of US$9.8bn. This is the
 Tencent operating profit (RMBm)1                                            Mail.ru EBITDA (RUBm)2                                               first time, since our initial investment
                                                                                                                                                  in 2001, that we have sold any
                                                         41%                                                                                      shares.
                                                                                                                                   15%
                                                     82 023
                                                                                                                                                • Mail.ru achieved organic revenue
                                                                                                                               20 551
                               58 154                                              18 086                17 914                                   growth of 18% YoY, mainly driven by
          41 764                                                                                                                                  growth in online-advertising and
                                                                                                                                                  massively multipiplayer online
                                                                                                                                                  (MMO) games, as well as in online
          2015                  2016                  2017                          2015                  2016                  2017              food delivery (Delivery Club).
 1 Reflects
          100% of Jan-Dec 2017 (FY17), detailed results available at       2 Reflects100% of Jan-Dec 2017 (FY17) results on a non-GAAP basis;
  www.tencent.com. FX rate: FY18 US$/RMB6.5920 (FY17 6.7448).               detailed results available at www.corp.mail.ru.
                                                                                                                                                • Trading profit growth was affected
  Operating profit reported on a non-GAAP basis.                            FX rate: FY18 US$/RUR57.6683 (FY17 62.7623).
                                                                                                                                                  by investments to grow Delivery
Note: Financial information as per financial years ending December, which differs from the Naspers reporting period. Equity-accounted             Club, Youla and Beepcar.
investments are included on a 3-month lag basis.
                                                                                                                                                                                         39
Segmental detail
                                                                         Revenue                                           EBITDA                                 Trading profit
                                                        FY18              FY17            %                 FY18             FY17             %       FY18              FY17            %
                                                         US$'m            US$'m         Change              US$'m            US$'m          Change    US$'m             US$'m         Change
Internet                                                   15 928           10 621       50%                    3 382             2 282     48%         3 053               2 030        50%
Social and internet platforms                              12 281            7 692       60%                    3 997             2 964     35%         3 726               2 761        35%
   - Tencent1                                              12 024            7 506       60%                    3 925             2 888    36%          3 675               2 701       36%
   - Mail.ru                                                  257              186       38%                        72                76    -5%             51                  60      -15%
Ecommerce                                                   3 647            2 929       25%                     (615)             (682)    10%          (673)               (731)       -8%
   - Etail                                                  2 060            1 659       24%                     (248)             (258)      4%         (270)               (281)       4%
   - Travel                                                   276              123      >100%                      (59)              (87)   32%            (61)                (88)      31%
   - Marketplaces                                             -                327      -100%                     -                 146 -100%             -                   137      -100%
   - Payments                                                 294              186       58%                       (60)              (66)    9%            (64)                (69)       7%
   - Classifieds                                              628              426       47%                       (99)            (319)    69%          (114)               (328)       65%
   - Food delivery                                            166               53      >100%                      (20)                5 >-100%            (30)                  5    >-100%
   - Other                                                    223              155       44%                     (129)             (103)   -25%          (134)               (107)      -25%
Video entertainment                                         3 680            3 401        8%                      627               520     21%           369                 287        29%
- South Africa                                              3 145            2 899        8%                    1 006               862     17%           851                 738        15%
- Sub-Saharan Africa                                          975              964        1%                     (271)             (260)     -4%         (364)               (358)       -2%
- Corporate and other2                                       (440)            (462)       5%                     (108)               (82)  -32%          (118)                 (93)     -27%
Media                                                         507               588      -14%                       10               40       -75%            3                19      -84%
Corporate and intersegmental                                   (18)            (48)      -58%                     (22)              (14)      -57%        (22)                (14)    -57%
Economic interest                                          20 097           14 562        38%                   3 997             2 828       41%       3 403               2 322      47%
Less: Equity-accounted investments                        (13 437)           (8 464)     -59%                   (3 739)          (2 756)      -36%      (3 444)            (2 536)    -36%
Consolidated                                                6 660             6 098       9%                      258                72     >100%         (41)              (214)      81%

1 EBITDA   and trading profit has been adjusted to include the amortisation expenses regarding Tencent’s digital content business.
2 Includes  intergroup eliminations for content and other sales between South Africa and sub-Saharan Africa, as well as our technology and Showmax.
                                                                                                                                                                                               40
Free cash inflow: increased profitability converts into cash generation
                                                                                                                                                           • Ecommerce cash generation is
Consolidated trading profit from profitable                                       Sources of free cash inflow (US$'m)1                                       improving - classifieds and
ecommerce businesses (US$m)                                                                                                                                  payments have replaced
                                                                                                                  1 101
                                                                                                                                                             Allegro’s contribution.
                                                                                                                   32
                                                                                         989                       31                                      • Classifieds (excluding letgo) is
                                                                                           33                                                                cash generative in aggregate
                                             52%                                           35
                                                                                                                   269                                       and generated 77% more free
                                                                                          152                                         Internet
                                                                                                                                                             cash than last year.
                                                                  Internet
                                                                                                                                        53%                • Stable free cash flow (FCF) from
                                                                    42%
                                                                                          191                                                                South African video
                                                                                                                   247                                       entertainment has been
                                                                                                                                                             impacted by changes in working
                                                                                                                                                             capital (mainly prepaid sports
                                          347                                                                                                                content rights renewals), but
                                                                                                                                      Other                  this will reverse next year.
                                                                                                                                      Payments
             229                                                                          578                                                              • We receive increasing dividends
                                                                                                                   522                Classifieds            from Tencent YoY. In FY18 the
                                                                                                                                      Tencent dividend       Tencent dividend increased
                                                                                                                                                             29% YoY.
                                                                                                                                      VE SA
                                                                                                                                                           • One of our key focus areas is to
           FY17                          FY18                                                                                                                further accelerate the path to
                                                                                         FY17                     FY18
                                                                                                                                                             profitability and cash
1 FCFdefined as EBITDA less adjustments for non-cash items, working capital, taxation, capital expenditure, capital leases repaid and investment income.     generation in our core
 Allegro excluded from all comparatives.                                                                                                                     segments.
                                                                                                                                                                                                41
FCF from operations offset by changes in working capital
US$m                                                                               FY17                 FY18    • Free cash flow (FCF) positively impacted by:
                                                                                                                  ‐ US$268m increase in cash from
 EBITDA                                                                               72                 258         operations (excluding working capital) is
 Working capital                                                                    141                 (255)        mainly due to a higher contribution
 Non-cash items                                                                       81                 138         from profitable businesses;
Cash generated from operations                                                      294                  141      ‐ US$34m reduction in capex; and
                                                                                                                  ‐ Dividend from Tencent increasing by
 Capital expenditure                                                               (173)                (139)
                                                                                                                     US$56m to US$247m.
 Finance leases                                                                    (106)                (104)
 Taxation                                                                          (333)                (391)   • Offset by working capital outflows:
 Investment income                                                                  193                  251      ‐ From video entertainment due to
Free cash flow (FCF)                                                               (125)                (242)        investment in set-top box inventory and
                                                                                                                     pre-payments regarding sports content
                                                                                                                     rights renewals; and
FCF breakdown (US$m)                                                                                              ‐ Investment in etail inventory ahead of
                                                                                                                     seasonal sales events.

                       268                                                         (29)                         • Disposal of Allegro in FY17 also impacted
       (125)                                                                                                      negatively, reducing cash from operations
                                       (421)                                                    (242)             in the current period by US$192m.
                                                                    37                                          • Excluding the negative impact of VE in SSA,
                                                                                          58                      FCF would have been positive.
                                                       (58)          36
       FY17        Cash from ops   Working capital   Tax paid   Capex and leases   Investment   FY18
                                                                                     income

                                                                                                                                                                42
Holding company sources of cash and commitments

                                                                                                                           • The inflows increased by 5%,
   US$m                                                                              FY17                   FY18             with the loss of cash from
                                                                                                                             Allegro, following its disposal,
   Cash remitted by Holdco:                                                                                                  replaced by cash inflows from
                                                                                                                             classifieds.
   Tencent dividend                                                                    191                   247
   VE segment dividend1                                                                370                   350           • The loan to value ratio was
   Allegro                                                                              60                       -           stable at 3%.
   Classifieds portfolio                                                                46                   106
   Total inflows                                                                       667                   703
   Commitments:
   Holdco – operating costs                                                           (97)                 (110)
   Available for interest/dividends                                                    570                   593
   Holdco interest cost (6 months)                                                     192                   183

   Interest cover                                                                       3.0                   3.2
   Loan to value (Debt: marketable securities)                                          3%                    3%

  1 ZARcomponent reflected at same FX rate that forward cover entered into to cover interest payments for next 12 months
   from this dividend.

                                                                                                                                                                43
Recent M&A activity

                                                                                                                                                                     • Optimisation of the portfolio
  Acquisition spend over time (US$m)                               Investments FY19 YTD (US$m)                      Exits (US$m)1
                                                                                                                                                                       happens on an ongoing basis.
                                             2 222                                                                                                                   • In FY18 we invested US$2.2bn
                                                                                                                                                  173                  in new opportunities:
                                                                                                   190
                                                                                                                                                                       ‐ Delivery Hero (US$1.3bn)
                                                                                                                                               2 200                   ‐ Takealot (US$202m)
                                                                                                     89                                                                ‐ MakeMyTrip (US$155m)
        1 495                                                                                                                                                          ‐ Swiggy (US$121m)
                                                                                                                        Total                  2 373                   ‐ Remitly (US$100m)
                                                                                                     35                                                                ‐ Kreditech (US$99m)
                                                                                                                                                                       ‐ Flipkart (US$71m)
                                                                                                                                                                       ‐ Autotrader (US$41m)
                                                                                                     80              Trim down (US$m)2                                 ‐ Other (US$136m)

                                                                                                                                                                     • We received US$10bn from
                                                                                                                                               9 763                   disposals in FY18, made up
                                                                                                                                                                       primarily of proceeds from
                            553
                                                                                                                                                                       the trim down of our Tencent
          262                                                                                                                                                          stake and the Souq disposal.
                                                                        Total                      394                Total                    9 763
         FY16              FY17               FY18
1 The sale of our 11.18% fully-diluted stake in Flipkart for US$2.2bn was announced in May 2018 and is subject to regulatory approval; the transaction is expected
  to be concluded in FY19.
2 Tencent stake was reduced from 33.2% to 31.2% in March 2018.

                                                                                                                                                                                                       44
Internal rate of return (IRR) well above cost of capital
   All internet investments excluding Tencent                                        Current internet portfolio excluding Tencent                                • If you consider all internet
   (FY08 –FY17) (US$bn)1                                                             (US$bn)2                                                                      investments (excluding Tencent)
                                                                                                                                                                   since 2008 against current market
                                                  17% IRR                                                                                                          valuations, we generated an IRR of
                                                                                                                                                                   17%. (Including Tencent close to
                                                                                                                             23% IRR                               50%).

                                                                                                                                                                 •   If you apply the same approach to
                                     2.2X                                                                          2.2X                                              existing assets, the overall return is
                                                                                                                                                                     23% - significantly ahead of the
                                                                                                                                                                     Nasdaq and many of our peers.

                                                                                                                                                                 •   Considering our cost of capital of
                                                      23.0
                                                                                                                                                                     ~12%, we have essentially doubled
                                                                                                                                   19.0                              our money over a relatively short
                                                                                                                                                                     period.
                     10.5                                                                                                                                        •   This track record (including 32%
                                                                                                   8.5
                                                                                                                                                                     Flipkart IRR) and our disciplined
                                                                                                                                                                     approach to capital allocation,
                                                                                                                                                                     provides us with confidence that we
          Total invested capital              Market & analyst                        Invested capital current             Market & analyst                          can generate great returns for
                                                 valuation                                   portfolio                        valuation                              shareholders by investing in growth
                                                                                                                                                                     opportunities.
1 IRR   calculated using market and analyst valuations for all internet assets (excluding Tencent) including disposed and discontinued businesses 2006 - 2017.
2 Market    and analyst valuations for current internet portfolio (excluding Tencent as at 30 September 2017).

                                                                                                                                                                                                              45
Summarised income statement

 US$m                                                                                                         FY172                  FY18     • Increase of US$1 448m in share of equity
                                                                                                                                                accounted investments:
                                                                                                                                                ‐ Mainly attributable to Tencent
Revenue1                                                                                                     14 562                20 097
                                                                                                                                                   (US$3 616m),
Less: Equity-accounted investments                                                                           (8 464)             (13 437)
                                                                                                                                                ‐ offset by losses from new investments
Consolidated revenue                                                                                           6 098                6 660          including MMT, Delivery Hero and
                                                                                                                                                   Kreditech.
Trading profit                                                                                                  (214)                  (41)
                                                                                                                                              • (Losses)/gains on acquisitions and
Trading margin                                                                                                    -4%                  -1%
                                                                                                                                                disposals:
                                                                                                                                                ‐ Loss on disposal of Novus (US$145m)
Net finance costs                                                                                              (485)                 (246)      ‐ Gain on disposal of Souq (US$89m).
Re-measurement of put options liabilities                                                                      (622)                 (252)
Share of equity-accounted results                                                                              1 829                 3 277    •   Impairments include the closure of the
Gains/(losses) on acquisitions and disposals                                                                   2 169                   (93)       classifieds JV in Bangladesh, and losses
Dilution (losses)/gains on equity-accounted investments                                                        (119)                 9 216        regarding the classifieds JV in Thailand and
Impairments                                                                                                      (58)                  (89)       various other write-offs.
Taxation                                                                                                       (244)                 (360)
                                                                                                                                              •   Tax paid is up YoY due to increased
Net profit                                                                                                     2 168               11 298         profitability, particularly in the video-
                                                                                                                                                  entertainment segment.
Core headline earnings                                                                                         1 454                 2 507
Core headline EPS (US$)                                                                                          337                   581
1 Based on economic-interest, i.e. equity-accounted investments are proportionately consolidated.
2 FY17 results restated for the group’s change in accounting policy regarding put option liabilities and the change in the calculation for
 trading profit and core headline earnings regarding Tencent’s digital content amortisation.
                                                                                                                                                                                              46
Finance costs down YoY

 US$m                                                                                 FY171                FY18    Interest paid and received
                                                                                                                   • Net finance costs on borrowings (net of interest on loans and
                                                                                                                       bank accounts) was down 14% to US$122m benefiting from lower
 Interest paid                                                                        (278)                (267)       utilisation of credit facilities and the 4.85% coupon achieved on
 Loans and overdrafts                                                                  (198)               (196)       the new US$ bond issued in July 2017.
 Transponder leases                                                                     (46)                (51)   • The RCF facility of US$2.5bn was unutilised at 31 Mar 2018.
 Other                                                                                  (34)                (20)   Other finance costs
                                                                                                                   • Translation of foreign assets and liabilities primarily relates to
 Interest received                                                                        70                 88       intergroup loans.
 Loans and bank accounts                                                                  56                 74    Re-measurement of written put option liabilities
 Other                                                                                    14                 14
                                                                                                                   • The change in accounting policy for put options has significantly
                                                                                                                      impacted other finance costs.
 Other finance costs, net                                                             (277)                 (67)
Translation of foreign current assets and liabilities                                  (243)                (12)   Debt
Translation of transponder leases                                                         42                  98   • US$1bn 7yr bond issued July 2013 (6% coupon).
                                                                                                                   • US$1.2bn 10yr bond issued July 2015 (5.5% coupon).
Translation of forward exchange contracts (FECs) and
                                                                                        (76)               (153)   • US$1bn 10yr bond issued July 2017 (4.85% coupon) - proceeds
cross-currency interest rate swaps
                                                                                                                     were used to repay the US$700m bond which matured in July
                                                                                                                     2017, with the remaining proceeds to be used for general
 Re-measurement of put option liabilities                                             (622)                (252)     corporate purposes, including M&A.

 Total finance costs                                                                (1 107)                (498)
1 FY17   has been restated for the group’s change in accounting policy regarding put option liabilities.

                                                                                                                                                                                          47
Contribution by associates and joint ventures
                                            Company               PPA               IFRS             Other           Core HEPS      • Equity accounted results include, amongst
 FY18 (US$m)                                                                                                                          others, investments in Tencent, Mail.ru,
                                              results      adjustments            results      adjustments         contribution
                                               3 616                    -          3 616                 (328)              3 288
                                                                                                                                      MMT, Delivery Hero and Flipkart.
 Tencent
 Mail.ru                                          12                  (3)               9                  28                 37    • “Other adjustments” relate to headline and
                                                                                                                                      core headline earnings (COHE) adjustments
 MakeMyTrip                                      (97)                 (6)           (103)                  27                (76)     similar to Naspers methodology.
 Delivery Hero                                   (28)                 (3)            (31)                  10                (21)
                                                                                                                                    • These include:
 Other                                         (206)                  (8)           (214)                  27               (187)     - Equity-settled share-based payments
 Total                                         3 297               (20)            3 277                 (236)              3 041     - Fair-value adjustments and forex
                                                                                                                                      - Profit/losses on disposals of non-current
 FX conversion rates: Tencent - US$/RMB6.5920 (6.7448); Mail.ru – US$/RUB57.6683 (62.7623)
                                                                                                                                         assets
                                                                                                                                      - Impairments
Equity-accounted investments’ contribution to core headline                 Associate and joint venture contributions (US$m)          - Gains/losses on acquisitions and
earnings (US$m)
                                                                                                                                         disposals
                                                                                                                      692             - Amortisation charges on intangible
                  (20)                          (236)
                                                                                                                                         assets related to business combinations.

                                                                                                    381                             • Once-off gains relate primarily to business
   3 297                        3 277                         3 041                                                  2 585            combination-related gains/losses
                                                                                    251
                                                                                                                                      recognised by associates and joint ventures.
                                                                                                   1 448
                                                                                   1 038                                            • The growth in FY18 is primarily driven by
                                                                                                                                      Tencent, which contributed US$3 616m (of
 Company          PPA        IFRS results       Other       Core HEPS              FY 16           FY 17             FY 18            which US$692m relates to gains on mergers
  results     adjustments                    adjustments   Contribution                                                               and acquisitions and is therefore reflected
                                                                                  Once-off adjustments      Normal contribution
                                                                                                                                      as a once-off adjustment).
                                                                                                                                                                                  48
Core headline earnings growing strongly
 Trend in core headline earnings per share (US$)1                                                                                         • Core headline earnings (which excludes once-
                                                                                                                                            off and non-operating items such as
                                                                                                                           72%              amortisation of intangible assets recognised in
                                                   CAGR +45%                                                                                business combinations, etc.), is not defined
                                                                                                                  5.81
                                                                                                                                            under IFRS, but is aimed at providing a useful
                                                                                                                                            measure of the group’s operating
                                                                                                                                            performance.
                                                                    3.37
                      2.76
                                                                                                                                          • In FY18 we changed our methodology for
                                                                                                                                            calculating this metric by including the cost of
                                                                                                                                            content amortisation relating to Tencent’s
                      FY16                                          FY17                                         FY18                       digital content business, which has been
                                                                                                                                            growing rapidly in recent years. We believe
                                                                                                                                            this better reflects the true operating
 Incremental core headline earnings drivers, YoY (US$m)1
                                                                                                                                            expenses of the group.

                                                             173               (5)               34              (57)                     • Core headline earnings per share increased
                                                                                                                                            72% YoY, benefiting from a:
                                            948                                                                                             - 22% reduction in development spend, and
                          (40)                                                                                                   2 507      - 45% increase in income from associates.
          1 454
                                                                                                                                          • Adjustments to reported earnings to arrive at
                                                                                                                                            core headline earnings are also applied to the
                                                                                                                                            contribution from equity-accounted
          FY17           Forex            Equity   Consolidated            Minorities      Net interest       Taxation            FY18      investments. These adjustments have tax and
                                        accounted trading profit                              cost                                          non-controlling interest effects that are
                                       investments                                                                                          similarly adjusted for in arriving at core
1 Prior
      year results have been restated for the group’s change in the calculation of trading profit and core headline earnings related to     headline earnings.
 Tencent’s digital content amortisation.                                                                                                                                                 49
Core headline earnings reconciliation

                                                                                                                                    • Main contributor of COHE growth was
                                                                                                                                      Tencent, contributing US$3.3bn (+47%
US$m                                                                                           FY171                     FY18         YoY)
                                                                                                                                    • Decreased consolidated trading losses
                                                                                                                                      (down 81% YoY) fuelled growth.
Headline earnings                                                                                  188                   1 794      • The above was partially offset by higher
                                                                                                                                      losses of associates and joint ventures,
Equity-settled share-based payment expenses                                                        296                      435       including MMT, Delivery Hero, Swiggy
                                                                                                                                      and Kreditech.
Amortisation of other intangible assets                                                            169                      190
                                                                                                                                    • Fair-value adjustments and currency
Business combination losses                                                                          44                      20       translation difference were impacted by
                                                                                                                                      the re-measurement of put options and
Retention option expense                                                                               1                       8
                                                                                                                                      losses on the cross currency interest
Fair-value adjustments & currency translation                                                                                         rate swap.
                                                                                                   756                       60
differences
                                                                                                                                    • The diluted earnings, diluted headline
Core headline earnings                                                                           1 454                   2 507        earnings and diluted core headline
                                                                                                                                      earnings figures presented include a
1 FY17   restated for the change in the calculation for core headline earnings related to Tencent’s digital content amortisation.     decrease of US$49m (FY17: US$24m)
                                                                                                                                      relating to the future dilutive impact of
                                                                                                                                      potential ordinary shares issued by
                                                                                                                                      equity-accounted investees.

                                                                                                                                                                                  50
Tencent contribution to core headline earnings

                                                                                                                        FY17                                    FY18

                                                                                                  Tencent FY16 (Dec)           Naspers’s share   Tencent FY17 (Dec)    Naspers’s share
                                                                                                           (RMBm)1                    (US$m)               (RMBm)             (US$m)

Tencent profit attributable to equity holders                                                                     41 095                2 037               71 510              3 616

 Adjustments to core:                                                                                                 4 385               200               (6 360)             (328)
 - Impairment of investments                                                                                          5 425               268                3 086                155
 - Share-based payments2                                                                                              5 123               246                6 875                346
 - Fair-value adjustments and gains and losses on acquisitions and disposals                                      (7 770)               (393)              (18 051)             (916)
 - Losses/(profit) on disposals of non-current assets                                                                   60                  3                   24                  1
 - Amortisation charges3                                                                                              1 547                76                1 706                 86
Tencent’s contribution to Naspers core headline earnings                                                                                2 237                                   3 288
1 100%  of Tencent Holdings Limited’s results as reported in its annual reports.
2 Allshare-based payments adjusted for as the split between equity and cash-settled awards is not always available.
3 FY17 amortisation adjustment restated for the change in the treatment of Tencent’s digital content amortisation.

                                                                                                                                                                                         51
Balance sheet reinforced with cash to pursue future growth opportunities
                                                                                                                      • The US$9.8bn raised from the recent
US$m                                                                                            FY17         FY18
                                                                                                                        trim of our Tencent stake has resulted
Debt1: (offshore US$3.2bn)                                                                     (2 898)      (3 216)     in a very strong balance sheet at year-
                                                                                                                        end.
Cash: (South Africa US$398m)                                                                    4 003       11 368
                                                                                                                      • We intend using the cash available to
Closing net cash                                                                                1 105        8 152      settle put options and to fund our
                                                                                                                        growth ambitions.
Gearing2                                                                                          -9%        -32%     • Group debt includes US$3.2bn in
Interest on loans and overdraft                                                                 (198)        (196)      US$-denominated bonds.
1 Excludes   satellite lease liabilities (US$1.2bn) and non-interest bearing debt (US$207m).
2 FY17
                                                                                                                      • Debt covenants related to RCF:
         restated for the group’s change in accounting policy for put option liabilities.
                                                                                                                        - Net debt/adjusted EBITDA 4.5x
Group net consolidated cash/(debt) (US$m)                                                                             • US$398m of total cash is held in ZAR.
                                                                                                                      • The remainder (96%) of the total cash
                                                                                                    8 152               (US$10.96bn) is held offshore, mainly
                                                                                                                        in US Dollar, EURO, Polish Zloty,
                                                                                                                        Brazilian Real and Indian Rupee.

                                                                 1 105
                     (1 213)

                      FY16                                        FY17                               FY18

                                                                                                                                                                  52
Debt maturity profile and debt position

Debt maturity profile (US$m)                                                                                      • The group amended its RCF in
                                                                                                                    April 2018 which extended the
                                                                                                                    facility for a further five year
                                                                                                                    period, maturing in April 2023.
                                                                                                                  • Apart from extending the maturity
                                                           Group RCF
                                                                                                                    date, the facility was amended to
                                                           US$2 500m
                                                                                                                    be more in line with the group’s
                                                                                  Bond
                         Bond
                                                                               US$1 200m          Bond              current credit profile.
                       US$1 000m                                                                US$1 000m
                                                                                                                  • It allows more flexibility to
                                                                                                                    leverage the significant value of
         CY19             CY20                 CY21-22       CY23                CY25              CY27
                                                                                                                    our marketable securities to raise
                                                                                                                    additional financing and the
                                                                                                                    financial covenants related to
                                                                                                                    MultiChoice South Africa have
Split of cash reserves (US$m)                            Split of debt obligations (US$m)
                                                                                                                    been removed.
                398                                                                                               • The US$2.5bn RCF facility was
                                South Africa                                                                        undrawn at 31 March 2018.
                                                                                           Offshore (US$ & EUR)
                                Offshore (US$ & EUR)

           10 970                                                      3 216

                                                                                                                                                         53
Current assets and liabilities

                                                                                                                                 • The increase in other receivables relates
                                                                                                                                   largely to video-entertainment content
                                                                                                                                   prepayments and an increase in
Current assets (US$m)                           FY17          FY18           Current liabilities (US$m)          FY171   FY18      merchant receivables at PayU.

Inventory                                         154           231          Current portion of long-term debt    915     280
                                                                                                                                 • Cash and deposits have increased
                                                                                                                                   largely due to the proceeds of US$9.8bn
                                                                                                                                   received from the trim down of the
Programme and film rights                         193           240          Trade payables                       487     564
                                                                                                                                   Tencent investment.
Trade receivables                                 420           452          Accrued expenses and other          1 827   3 132   • Souq and Novus were reported as held
                                                                                                                                   for sale in FY17. Subsequently, Souq was
Other receivables                                 456           762          Tax payable                           17      31      disposed of and Novus unbundled in
                                                                                                                                   the current year.
Derivative financial assets                          6            11         Derivative financial liabilities     119     129    • The current portion of long-term debt
                                                                                                                                   decreased by US$635m, primarily due
Cash and deposits                               4 007       11 369           Bank overdraft and call loans          4       1      to the repayment of the 2017 bond
                                                                                                                                   (US$700m) on maturity in July 2017.
Assets held for sale                              403               -        Liabilities held for sale             70        -   • Following the change in the group’s
                                                                                                                                   accounting policy, put option liabilities
Total                                           5 639       13 065           Total                               3 439   4 137     of US$1.5bn (FY17: US$510m) were
                                                                                                                                   included in accrued expenses and other
1 FY17   has been restated for the group’s change in accounting policy for put option liabilities.                                 current liabilities.

                                                                                                                                                                               54
Capital expenditure

                                                          Split by business                      • Maintenance capex expected to
 US$m                                       FY17   FY18                                            change as the business evolves.
                                                                                                 • Current estimates for maintenance
Land, buildings & manufacturing equipment     30     43                                            capex are:
                                                                                                   - Media24
FX exposure: hedging

                                         Open FEC positions
                                         • Video entertainment: US$704m and €69m (programming
  US$ FX Cover         US$m   ZAR rate     rights and leases).
                                         • Corporate: US$144m (Bond/RCF interest hedge).

  12 months out         643     14.42
                                         Hedging strategy
  24 months out         205     14.36    • FECs not viable outside of SA, thus exposure in rest of Africa
                                           mostly not hedged.
                                         • Video entertainment: cover 100% of net SA exposure under
                                           18 months; up to 100% between 18-24 months forward.
                                         • Almost all FEC’s qualify for hedge accounting.
  EUR FX Cover         EURm   ZAR rate

  12 months out         100     17.25    Video entertainment currency dynamics
                                         • Pricing in local currency.
  24 months out          41     17.63    • ~40% of input costs in US$.
                                         • We cover up to 100% of net SA exposure 18-24 months forward.
                                         • We utilise mechanisms in SSA to hedge where possible.

                                                                                                            56
APPENDIX
Group structure

                                                            Global platform operator

                                                                           Internet                                                                                         Video
                                                                                                                                                                                         Media
                                                                                                                                                                        entertainment
                                                                                                                                                Social &
                                                                                                                                                internet
     Classifieds                     B2C                     Payments                            Naspers Ventures                              platforms

                 100%1                       79.3%                       97.6%              Food                    Ventures                               31.2%                   80%           85%

                  71.2%                      96.1%                       37.6%                       77.4%                      24.5%                      28.4%

                  51.8%                      43.1%3                       22.6%                    60.7%                        12.1%                                             100%

                 73.4%2                      12.4%4                                                  22.8%                      21.1%

                                                                                                     21.9%                      13.5%                                              80%

                                                                                                                                34.1%                                              80%

                                                                                                                                20.0%                                             80%5

1) OLX owns 50% of operations in Brazil and 40.5% of Indonesia.                                                                   7.5%                                            100%
2) Our effective interest in letgo USA (B.V) is 47.2% held through Ambatana Holdings.
3) MMYT is listed on the Nasdaq stock exchange.
4) We announced the disposal of our 12.4% (fully diluted 11.2%) stake in Flipkart in May 2018. The transaction is subject to regulatory approval, expected to close in FY19.
5) Showmax SA is held 80%, other Showmax operations are held 100%.
6) In June 2018, the group committed to an investment of US$80m in Swiggy. Following this investment, the group will hold a 24% effective interest (23% fully diluted).
*Organogram depicts effective percentage holdings in major entities as at 31 March 2018.                                                                                                         58
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