Financial Results Presentation For the year ended 31 March 2015
Important information This presentation contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995. Words such as believe, anticipate, intend, seek, will, plan, could, may, endeavour and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. While these forward-looking statements represent our judgments and future expectations, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These include key factors that could adversely affect our businesses and financial performance. We are not under any obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein. 2
Overview Financials Internet Video Entertainment Outlook Appendix 3
FY15 Overview: building technology platforms in growth markets 1 Leadership in ecommerce 3 Target high growth markets 5 2 Continue focus on fast growing segments 4 Transform further into mobile Optimise returns 4
1. Leadership in ecommerce >240m active users global leader in horizontal classifieds >20 m active users #1 ecommerce platform in Poland > 6m registered users #1 ecommerce platform in Middle East and Africa >50 million registered users #1 ecommerce platform in India *Data reflect recent disclosure by various businesses 5
2. Continue focus on fast growing segments Ecommerce YoY organic growth in Naspers segment revenues Video entertainment Average Time Spent per Day on Video Entertainment by US Adults (hrs) Classifieds +33% Etail +49% 0.15 1.06 4.34 4.15 2011 2015 Sources: Company data, emarketer Television Online video 6
3. Target high growth markets FY15 M&A by country FY15 Development spend by country India (68%) Nigeria (6%) South Africa (9%) Brazil (4%) Turkey (3%) Romania (2%) Other (8%) India (19%) Nigeria (12%) South Africa (12%) Brazil (8%) Kenya (5%) UAE (4%) Other (40%) 7
India: well-positioned across a number of segments Etail #1 in Etail Etail #1 in Classifieds ~45% market share >50 million registered users >11m shipments/month US$4bn GMV run-rate * Based on company data #1 marketplace for used goods and cars Leader in brand awareness and engagement Average mobile PV growth ~300% yoy India: 8 th most searched brand; 5 th most trusted online brand* *Sources: Google Zeitgeist 2014, Brand Trust Advisory Report 2014 #1 in Travel* #2 Payment Gateway* 2.1m transactions/month, ~2x size of any competitor 8x size of nearest competitor in bus ticketing Largest player in hotels (390% YoY growth) 44% of hotel transactions on mobile * Based on # of transactions Used by >75% of top 100 Indian ecommerce merchants Supported by >70,000 merchants 70+ payment options allows for easy payments * Based on TPV processed 8
4. Transform further into mobile % time spent on top ecommerce sites (2014 USA) Top shopping apps in the Google Play Store 26 64 29 14 45 22 Desktop browser #1 #2 Rest Mobile app Source: ComScore Source: Similarweb, May2015 9
5. Optimise returns Consolidating markets Exiting low-growth geographies * * Subject to regulatory approval Restructuring CEE 10
Overview Financials Internet Video Entertainment Outlook Appendix 11
FY15: Synopsis of financials Revenue* (ZARbn) Development spend* (ZARbn) Mar 14 26% 33% Mar 15 104.98 132.45 8.10 10.74 Core HEPS (ZAR) DPS (ZAR) 28% 11% 21.81 27.82 4.25 4.70 * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 12
Strong market positions drove solid revenue growth Incremental revenue* by segment, YoY (ZARm) 37% 17% 3% 26% 104,981 20,993 6,148 324 132,446 132,446 Mar 14 Internet Video Entertainment Print Mar 15 Revenue by business segment* Revenue* (ZARm) Internet (59%) CAGR 31% 104,981 132,446 Video Entertainment (32%) Print (9%) 45,108 56,522 76,776 * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 13 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15
Further investment in etail and DTT Incremental development* spend by segment, YoY (ZARm) 33% 32% 42% 33% 1,976 577 86 8,100 10,739 Mar 14 Ecommerce Video Entertainment Print Mar 15 Effect of forex on development spend*, YoY (ZARm) 7% 26% 33% 2,094 8,100 545 10,739 *Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 14 Mar 14 Forex Organic investments Mar 15
Core headline earnings up 30% YoY Incremental core headline earnings drivers, YoY (ZARm) 1,212 1,490 476 66 (206) (1,560) (1,233) 4,936 5,008 (2,639) (2,639) 11 229 11,228 8,616 Mar 14 Profits from listed assets Ecommerce* Other Video entertainment* Print Tax & Interest Development spend* Mar 15 * Development spend reflected on an economic interest basis, i.e. assuming equity accounted investments are proportionately consolidated; segmental results are net of development spend 15
Summarised consolidated income statement Mar 14 ZARm Mar 15 ZARm Revenue* 104,981 132,446 Less: Associates and joint ventures (42,253) (59,354) Consolidated revenue 62,728 73,092 Trading profit 3,906 3,150 Trading margin 6% 4% Net finance costs (2,127) (2,824) Share of equity accounted results 10,835 16,384 Impairments (2,774) (1,162) Taxation (2,895) (3,757) Net profit 6,529 14,024 Core headline earnings 8,616 11,228 Core headline EPS (ZAR) 21.81 27.82 * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 16
FC outflow due to increased investment in growth Mar 14 ZARm Mar 15 ZARm Operating cash flow 7,383 6,476 Capex (4,442) (3,280) Finance leases (805) (932) Tax (3,319) (3,845) Investment income (1) 841 1,064 Free cash flow (FCF) (349) (515) (1) Dividends received from investments and equity accounted investments 17
Balance sheet remains solid Mar 15 ZARm Debt (1) : (offshore US$3.2bn) (38,781) Cash: (South Africa ZAR6.3bn) 14,569 Closing net debt (24,212) Interest cover 10x Net debt/ Adjusted (2) EBITDA 1.3x Value of marketable listed securities/debt* 21x (1) Excludes satellite lease liabilities and non-interest bearing debt; (2) Adjusted EBITDA =consolidated EBITDA + share of equity accounted earnings + IFRS2 charges + impairments + transponder lease payments (i.e. non-cash items) *As at 26 June 2015 18
Overview Financials Internet Video Entertainment Outlook Appendix 19
Ecommerce: expansive global footprint E T A I L Etail: focusing on attractive markets 10 companies, 17 markets #1 in almost all businesses most by significant margin 76% increase in items sold Classifieds Payments Etail Online services Marketplaces: Allegro #1 in Poland Payments: becoming leader in newworld growth markets 1 brand, 16 markets 100,000+ merchants, 220+ payment options 69% increase in daily payment transactions Classifieds: OLX the leader across growth markets +40 countries; 240 million active users 24% increase in new listings * Only includes country of domicile for associates, not their entire footprint 20 Online services: Expanding footprint and growing organically Goibibo: Fastest growing online travel agent in India Redbus: 8x bigger than #2 in bus ticketing in India ifood: 85% market share in food delivery in Brazil
Ecommerce: segment overview* Mar 14 ZARm Mar 15 ZARm % change Revenue 20,355 27,772 36% Development spend 6,083 8,059 33% Trading loss (5,329) (6,093) -14% Ecommerce: FY15 Revenue split Etail (59%) Other (41%) Ecommerce: revenue and trading losses (ZARm) 28 000 27,772 21 000 14 000 12,386 20,355 Ecommerce: FY15 YoY organic revenue growth by type 49% 7 000 (7 000) 6,643 4,218 3,085 (,107) (,207) (1,238) (2,337) (5,329) (6,093) Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Revenue Trading losses * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 33% 26% Etail Classifieds Online services 16% 15% 5% Payments OCS Marketplaces 21
Etail: increased scale driving revenue momentum Etail: Revenue growth (ZARm)* 54% Etail: FY15 GMV by region* 16,501 10,705 5,283 Mar 13 Mar 14 Mar 15 India & SE Asia (55%) Europe (35%) Africa & Middle East (10%) * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 22
Online Services: gaining good traction in travel Ibibo Group: Most online travel transactions in India Unit transactions/month (m) 2.1 2x 2.1m transactions/ month ~2x size of any other online travel agent 8x size of nearest competitor in bus ticketing Largest player in hotels (390% YoY growth) 44% of hotel transactions on mobile >53% of ibibo s revenue from non-air categories ibibo Source: Website data, March 2015 1.0 Competition 62% YoY growth 35% 23
Classifieds: OLX clear leader in emerging markets Global footprint +40 Countries +20 Offices Mobile leadership Scale +1,000 Employees #1 app 15 COUNTRIES (1) +4.3 APP RATING +240m MONTHLY ACTIVE USERS +17b MONTHLY PAGE VIEWS 1) Google play store; shopping category Note: numbers include OLX brand only 24
Classifieds: operational overview Naspers positions (number of countries) 20 23 16 12 5 5 3 2 3 1 6 8 Entering Fighting Leading Leading and monetising 2014 1HFY15 FY15 Daily visits (m)* Daily page views (m)* 32% 53% 37 657 28 429 Mar 14 Mar 15 Mar 14 Mar 15 *Reflects associates on a proportionate basis 25
Classifieds: mobile is transformational Monthly active users over mobile devices (YoY growth), selected countries Mar 14 Mar 15 60% 72% 129% 144% 191% 170% 55% Colombia Argentina South Africa Ukraine Poland Indonesia India Mobile % 52 47 72 34 33 75 80 26
Classifieds: maturing the market in key Schibsted JVs Market maturity index (# monthly listers / capita),q1 2015 Russia Poland Portugal Brazil Indonesia JVs established successfully Pushing for further growth to mature the markets 27
Classifieds: solid performance in India India: Relative inflow of new listings (goods and cars) OLX Quikr India: Brand awareness 2.3x 2.4x 2.4x 2.2x 2.3x May 14 Jul 14 Oct 14 Feb 15 May 15 Source : Website data Source : Google trends Indian market still nascent, yet competitive Solid and sustained lead on key metrics 28
Listed internet: Tencent operating profit (RMBm) Revenue mix FY14* 59% CAGR +33% 30,542 19,194 15,479 9,838 12,254 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Value-added services (80%) Ecommerce transactions (6%) Advertising (11%) Other (3%) *Reflects 100% of FY14 results available on www.tencent.com Effective from Mar 11 2014, Tencent has divested its B2C and C2C ecommerce marketplaces and deconsolidated such revenues FY15 ZAR/RMB1.796(1.664) 29
Listed internet: Mail.ru EBITDA (RURm) Revenue mix FY14* 13% CAGR +50% 16,122 18,297 11,535 8,381 3,628 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Display advertising (35%) Community IVAS (33%) MMO Games (24%) Other (8%) *Reflects 100% of FY14 aggregate segment performance as reported For IFRS results with full disclosure refer to www.corp.mail.ru FY15 ZAR/RUR 0.25 (0.31) 30
Overview Financials Internet Video Entertainment Outlook Appendix 31
Video Entertainment strategy: ongoing investment in various our platforms 1 Grow DTT base Strong acceleration in subscriber growth; added 1.4m subs 2H 2 Focus on better products Launched connected DStv Catch Up (catalogue offers >1,200 hours content) Added several new channels (12 in SA and 24 in SSA) 7 new HD channels made available HD channels now available across all tiers 3 Ongoing investment in local content More than ZAR2bn invested in local content in SA SuperSport remains largest funder of sport on African continent 32
22,259 5,927 25,259 6,379 30,257 7,559 8,520 8,009 36,271 42,419 Video Entertainment: consistent solid performance Video Entertainment subscriber homes ( 000) CAGR 20% 27% 4,819 3,051 2,288 1,630 1,439 3,489 3,981 4,451 5,008 5,406 Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 South Africa Sub-Saharan Africa Video Entertainment financials (ZARm) 27% 25% 25% DTT investment phase 23% 19% Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Revenue Trading profit Margin 33
DTT: strong acceleration in subscriber growth DTT Subscribers ( 000) 2,256 23 151 377 541 817 873 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 11 countries 160 sites Total DTT spend (ZARm) 2,359 1,148 410 865 2,194 1,327 185 425 Mar 12 Mar 13 Mar 14 Mar 15 Development spend Capex Jun 15 34
Overview Financials Internet Video Entertainment Outlook Appendix 35
FY16 Outlook: continue building our platforms 1 Leadership in ecommerce 2 Continue focus on fast growing segments 3 Target high growth markets 4 Transform further into mobile 5 Optimise returns Continue rapid audience and topline growth Classifieds, etail and online services Connected video entertainment and DDT Prioritise investment outside mature markets Focus on areas with strong mobile internet growth Prioritise mobile apps across business Allocate capital to high growth opportunities Pursue operational cost savings 36
Overview Financials Internet Video Entertainment Outlook Appendix 37
Glossary of terms ARPU: Average Revenue Per User IM: Instant Messaging ASO: Analogue Switch Offs IVAS: Internet Value-Added Service B2C: Business to Consumer JV: Joint Venture C2C: Consumer to Consumer MAL: MultiChoice Africa Limited CAGR: Cumulative Annual Growth Rate M&A: Mergers and Acquisitions DTH: Direct-to-Home Television MAU: Monthly Average Users DTT: Digital Terrestrial Television MMO: Massively Multiplayer Online EPS: Earnings per Share OCS: Online Comparison Shopping FCF: Free Cash Flow PV: Page Views FEC: Forward Exchange Contract PVR: Personal Video Recorder FX: Forex ROI: Return on Investment GEM: Global Emerging Markets SSA: Sub-Saharan Africa GMV: Gross Merchandise Value STB: Set-top box HD: High Definition VOD: Video-On-Demand IM: Instant Messaging 38
Investor Relations Meloy Horn Office: +27 11 289 3320 Mobile: +27 82 7727 123 E-mail: InvestorRelations@naspers.com Website: www.naspers.com 39 39