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Naspers Limited FY 2014 financial results presentation

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Naspers Limited Listed on the Johannesburg Stock Exchange has released its Full Year Results Presentation. Check out ...

Naspers Limited Listed on the Johannesburg Stock Exchange has released its Full Year Results Presentation. Check out
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    Naspers Limited FY 2014 financial results presentation Naspers Limited FY 2014 financial results presentation Presentation Transcript

    • 1 Financial Results Presentation For the year ended 31 March 2014
    • 2 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.
    • 3 Overview Financials Internet Outlook AppendixPay-TV
    • 4 Print 1915 – PayTV 1985 – Internet 1997 – Mobile 2010 – Transformation at our core 1 > 50 > 80Naspers countries
    • 5 Fast changing landscape provides rare opportunities 1 2 3 4 Mobile is transforming the internet, particularly in our markets Our internet focus markets are scaling much faster than average Etail and classifieds are reshaping ecommerce New innovations are emerging outside developed markets
    • 6 41 17 76 58 384 52 65 99 218 81 52 106 177 616 56 69 101 260 Russia Indonesia Brazil India China United Kingdom Germany Japan United States 2009 2013 Number of internet users (m); 2009 – 2013 Growth (%) Naspers focus markets sample Source: IDC, Naspers +60% +205% +33% +206% +95% +8% +6% +2% +19% Mobile transforming internet in our markets
    • 7 3 9 10 22 24 26 32 34 34 38 71 Japan WEU US LatAm CEEU Asiaex- Japan China Russia Brazil MEA Turkey India Focus internet markets scaling faster than average Source: IDC, Naspers Growth in internet buyers, 2009 – 2013 CAGR (%) Naspers focus markets sample 77
    • 8 Etail and classifieds reshaping ecommerce Source: IDC, Naspers 66 139 140 194 Total ecommerce Total classifieds Etail Mobile classifieds India: 2009 – 2013 (GMV growth %)
    • 9 Mobile payments: Solving unique local problems. Forty percent of Kenya’s GDP on mobile Mobile messaging: Developing new revenue streams from micropayments LTE/4G: World’s first next generation phones & technology Wearable tech: Developing gesture controlled devices for all possible uses WeChat: Transforming social communication, entertainment & ecommerce Redbus: Aggregating & taking Indian transport mobile QR codes: First developed in Asia, allows easy offline to online engagement & shopping New innovations emerging outside the US
    • 10 Extended classifieds aggressively, prioritising mobile Continued rapid etail expansion Tencent transforming Weixin/WeChat to a broad platform Scaled payments, travel, mobile services Expanded Pay-TV distribution platforms FY14 in review
    • 11 Financials Internet Outlook AppendixPay-TV Overview
    • 12 22.16 21.81 Mar 13 Mar 14 Revenue (ZARbn) Core HEPS (ZAR) 49.9 62.7 3.85 4.25 DPS (ZAR) 8.5 8.6 Core headline earnings (ZARbn) FY14: Financial synopsis 26% 1% -2% 10%
    • 13 5,295 5,927 6,379 7,559 8,520 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Pay-TV profitability (ZARm)* 6,020 9,838 12,254 15,479 19,194 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Tencent profitability (RMBm)* 2,152 3,628 8,381 11,535 15,087 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 EBITDA (RURm) Mail.ru profitability (RURm)* CAGR +13% 13% * To conform with publicly disclosed data, profitability for pay-TV reflects trading profit, for Tencent it is operating profit and for Mail.ru it refers to EBITDA. Strong performance by established businesses 24% 31% CAGR +34% CAGR +63%
    • 14 3,085 4,218 6,643 12,386 20,355 (107) (207) (1,238) (2,337) (5,329) (6,000) – 6,000 12,000 18,000 24,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Trading profit/(losses) Ecommerce revenue and trading profit/(losses) (ZARm) 64% Pursuing major new growth opportunities CAGR +60%
    • 15 7,656 2,379 915 95 4,267 Mar 13 Internet Pay-TV Print Mar 14 Incremental development spend by segment, YoY (ZARm) 73% >100% 79%86% Focused on ecommerce expansion Increased investment in brand advertising Improved talent and execution capacity Continued to scale etail businesses More than doubled investment in classifieds Internet ZAR1,327m invested in DTT Additional R485m spent on: - online and mobile technologies - decoder development Pay-TV Ongoing investment Aim is to build new revenue opportunities Funded by internal sources Additional development captures more opportunities
    • 16 Strong growth across all platforms Some uplift from change in business mix Ecommerce revenue +64% YoY Tencent revenue +67% YoY Mail.ru revenue +44% YoY Internet Benefited from : - 20% increase in subscribers - 5% increase in subscription rates in SA Pay-TV FY14 revenue by business segment* 57,01836,271 11,692 Internet (54%) Pay TV (35%) Print (11%) Tough year throughout Media24 +1% YoY Abril -3% YoY Print media 22,431 6,014 (240) 76,776 Mar 13 Internet Pay-TV Print Mar 14 Incremental revenue by segment, YoY* (ZARm) 104,981 65% 20% 37%-2% * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated Revenue* (ZARm) 37,251 45,108 56,522 76,776 104,981 - 35,000 70,000 105,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Internet largest revenue growth driver and segment CAGR 30% Mar 13 Internet Pay-TV Print Mar 14
    • 17 Mar 13 ZARm Mar 14 ZARm Revenue* 76,776 104,981 Less: Associates and joint ventures (26,907) (42,253) Consolidated revenue 49,869 62,728 Trading profit 5,912 3,906 Trading margin 12% 6% Net finance costs (1,310) (2,127) Share of equity accounted results 8,778 10,835 Impairments (2,822) (2,774) Taxation (2,533) (2,895) Net profit 6,748 6,529 Core headline earnings 8,533 8,616 Core headline EPS (ZAR) 22.16 21.81 98% increase in net interest on loans due to: - Higher debt levels to fund acquisitions - Negative effect of currency translation Net finance cost Income from associates Includes ZAR2.9bn (FY13 R2.6bn) book profit from: - Mail.ru’s sales of shares in Facebook and Qiwi - Tencent’s merger of ecommerce operations with JD.com and sale of interest in China Vision R1.1bn relates to flash sales fashion businesses Abril fully impaired by a further R1.2bn Impairments * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated Currency impact Revenue* up 22% in constant US$ rates Trading margin Decline due to step-up in development spend Summarised consolidated income statement
    • 18 Mar 13 ZARm Mar 14 ZARm Operating cash flow 8,577 7,376 Capex (2,743) (4,442) Finance leases (585) (805) Tax (2,670) (3,319) Investment income 1,103 841 Free cash flow (FCF) 3,683 (349) Pay-TV ZAR3.7bn (mainly DTT) Ecommerce ZAR447m Print ZAR473m Net of proceeds on sale of assets of ZAR197m Capex Impacted by new satellite lease for MCSA Finance leases Increase due to higher profits in SA Tax Includes ZAR793m dividend from Tencent Investment income Expansion of DTT and development spend lowers FCF
    • 19 Mar 14 ZARm Debt: (offshore US$2.6bn) (27,990) Cash: (South Africa R5bn) 12,583 Closing net debt (15,407) Interest cover 10x US$465m of debt-funded acquisitions Some currency impact on translation Increase Excludes transponder leases of ZAR7.3bn, considered to be an operating cost Net debt Gearing 23% Balance sheet remains sound
    • 20 Outlook AppendixPay-TV Overview InternetFinancials
    • 21 Large global internet footprint* * Only includes country of domicile for associates, not their entire footprint
    • 22 0 1 2 3 4 5 6 Alibaba Amazon eBay Naspers Mercadolibre JD.com Rakuten Rocket Internet 1Q'13 1Q'14 -1% -2% 44% 7% 38% -17% 21% 24% Source: ComScore, Naspers Monthly average desktop visits in billions, Y/Y growth % (excl. payments-related properties) Naspers has a substantial ecommerce presence
    • 23 Leadership positions in all key markets Significantly strengthened talent pool Growth accelerating Competition remains strong Mobile on all platforms central to our plan Operational Development spend accelerated to R5.6bn Financial ZARm Mar 13 Mar 14 % Change Revenue 12,386 20,355 64% Trading profit (2,338) (5,329) >-100% Revenue: YoY growth by type Expanded footprint and ambition level in classifieds Organic and acquisitive growth in etail Consolidation of payments and online comparison shopping (OCS) into single business units Strong and improving margins for marketplaces and comparison shopping Strategic 103% 84% 71% 35% 32% 24% 0% 40% 80% 120% Etail Classifieds Online services OCS Payments Marketplaces Ecommerce: summary
    • 24 Growth ahead of competitors in most markets Stepping up investments to capitalise on momentum and broaden footprint Continuing local-global orientation: rebranded local sites to OLX in 9 markets Strategic Improved talent and execution Investments in technology, especially mobile Aggressive local marketing Operational Total page views: YoY growth rates by region* 136 429 0 250 500 Mar 13 Mar 14 Daily page views (m)* 215% * Select criteria as measured for the month of March, not adjusted for acquisitions and disposals and reflecting associates on a proportionate basis 10.2 25.3 - 10 20 30 Mar 13 Mar 14 148% Daily visits (m)* Financial R3.7bn investment in organic growth initiatives, up 126% YoY Monetisation in increasing number of countries 230% 165% 133% 95% 0% 50% 100% 150% 200% 250% Latin America India & SE Asia Africa & Middle East Europe Ecommerce: classifieds
    • 25 Jul Aug Sep Oct Nov Dec Jan Feb Mar Jul Aug Sep Oct Nov Dec Jan Feb Mar 212% Sources: Google, Company data Mobile net new listings (NNL) Brand awareness (Google) BomnegocioJan ‘12 May ‘14 2013 2014 OLX 2013 2014 Brazil Mobile net new listings (NNL) Brand awareness (Google) India Jan ‘12 May ‘14QuikrOLX Strong traction in key markets 0 20 40 60 80 100 0 20 40 60 80 100 601%
    • 26 Acceleration of organic growth First party base complemented with marketplaces Rapid category and footprint expansion Strategic 62% of revenue growth M&A driven Margins typically low, but negative working capital cycle produces cash Financial Global segment approach to etail Investment in fulfilment and distribution capacity Increasingly shaping retail calendar Operational Europe (73%) India & SE Asia (16%) Africa & Middle East (11%) GMV by region *Excludes marketplaces, OCS and online services 5,283 10,705 - 4,000 8,000 12,000 Mar 13 Mar 14 103% Revenue (ZARm) Ecommerce: etail*
    • 27 Value-added services (75%) Ecommerce transactions (16%) Advertising and other (9%) RMBm* Dec 12 Dec 13 % Change Revenue 43,894 60,437 38% Operating profit 15,479 19,194 24% Operating margin 35% 32% * Reflects 100% of Jan-Dec 2013 results available on www.tencent.com, FY14 ZAR/RMB 1.66 (1.362) Revenue mix FY14* 396m combined monthly active WeChat and Weixin user accounts (+87% YoY) 848m monthly active IM user accounts (+3% YoY) 644m monthly active Qzone user accounts (+5% YoY) Q1 2014 statistics Further solidified leadership in online games Strategic partnership with Sogou 17.6% equity holding in JD.com Competition intensifying Weixin re-shaping the mobile consumer landscape Operations Solid growth in revenues and profits Good growth in performance-based social advertising, as well as online video advertising Financials Listed internet:
    • 28 Community IVAS (32%) Display advertising (20%) MMO Games (24%) Contextual advertising (14%) Other (10%) Listed internet: RURm* Dec 12 Dec 13 % Change Revenue 21,151 27,404 30% EBITDA 11,535 15,087 31% EBITDA margin 55% 55% *Reflects 100% of Mail.ru Group’s FY13 aggregate segment performance as reported. For IFRS results with full disclosure refer to www.corp.mail.ru; FY14 ZAR/RUR 0.31 (0.27) Revenue mix FY14* Online games and IVAS performed well Warface gaining traction in users and revenues On-going user migration to mobile Contextual advertising strong Operations One-off gains after selling Facebook and Qiwi shares Launched My.com in US Increased stake in VKontakte from 40% to 52% Other Q1 2014 statistics 59m total monthly users of Mail.ru portal 7.6m monthly paying users on platform Financial Good results across all major segments Net profit up 36% YoY
    • 29 Outlook Appendix Overview Financials Pay-TV Internet
    • 30 1. Accelerated investment in local content 3. Investment in DTT to bring payTV to the mass market 2. Enhanced product offering and improved services Pay-TV: strategy
    • 31 1.3m net additions YoY - Compact accounted for 43% of growth - Premium stable - 816,925 DTT subscribers at 31 Mar PVR base increased 15% YoY to 1.1m BoxOffice averaging 529,000 movie rentals p.m. Subscribers Introduced new low cost bouquets Launched Explora PVR with expanded hard drive Expanded BoxOffice GOtv (DTT) continued roll-out Regulatory and competition intensifying Operations Margin pressure due to - investment in local content - higher fx rates - DTT costs (including inventory build-up) Irdeto returned to profitability Financials 2,852 3,489 3,981 4,451 5,008 1,099 1,439 1,630 2,288 3,051 – 2,000 4,000 6,000 8,000 10,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 South Africa Sub-Saharan Africa Pay-TV subscriber homes („000) 18,810 22,259 25,259 30,257 36,271 5,295 5,927 6,379 7,559 8,520 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Trading profit 28% 27% 25% 25% 23% Margin Pay-TV financials (ZARm) Pay-TV: now servicing 8m households 20%CAGR 18%
    • 32 Sep 13 Dec 14 Analogue switch-off (ASOs) starting to gain pace Mar 14 Now in 11 countries Covering 112 Cities 2 23 151 377 547 817 - 300 600 900 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 DTT Subscribers („000) Digital Terrestrial Television (DTT) Jun 15Jun 15Sep 13 Dec 14Mar 14
    • 33 Pay-TV Appendix Overview Financials Outlook Internet
    • 34 Ecommerce • Step-up growth in classifieds • Accelerate growth in etail, including footprint expansion • Push further on new growth areas (online services) FY15 Financials • Revenue growth to advance further • Development spend at higher levels • Leverage cash from established businesses to fund growth Pay-TV • Capture growth opportunity in DTT across Africa • Invest aggressively in online content delivery options • Deal with competitive and regulatory challenges FY15 Outlook: growth and business model expansion
    • 35 Pay-TV Overview Financials Internet Outlook Appendix
    • 36 Mar 13 ZARm Mar 14 ZARm Mar 13 US$m Mar 14 US$m Revenue 49,869 62,737 5,830 6,157 Operating profit 4,099 2,018 479 198 Finance costs (1,310) (2,127) (153) (209) Share of equity accounted results 8,778 10,835 1,026 1,064 Acquisitions and disposals (53) 751 (6) 74 Dilution profits (96) (852) (11) (84) Impairment of equity accounted investments (2,137) (1,201) (250) (118) Profit before taxation 9,281 9,424 1,096 925 Taxation (2,533) (2,895) (296) (284) Net profit 6,748 6,529 789 641 Attributable to: Naspers 6,047 5,751 707 565 Minorities 701 778 82 76 FY14 ZAR/US$ 10.19 (8.55) Consolidated income statement – US$
    • 37 Mar 13 ZARm Mar 14 ZARm Headline earnings 6,630 5,981 Equity-settled share scheme charges 850 1,120 Deferred tax adjustments (195) 58 Amortisation of intangible assets 1,403 1,385 Business combination gains/(losses) 51 (9) Mail.ru special dividend received by Tencent (423) - Prior year tax benefit (191) - Retention option expense 135 128 Fair value adjustments & currency translations 273 (47) Core headline earnings 8,533 8,616 Core headline earnings
    • 38 ZAR weakness positively impacted translation of offshore earnings Average Closing rate Currency (ZAR = 1FC) Mar 13 Mar 14 % change Mar 13 Mar 14 % change US dollar 8.55 10.19 -19 9.24 10.53 -14 Euro 11.03 13.69 -24 11.84 14.51 -23 Chinese Yuan/Renminbi 1.36 1.66 -22 1.49 1.69 -13 Brazilian Real 4.24 4.50 -10 4.57 4.67 2 Polish Zloty 2.65 3.25 -28 2.83 3.40 -15 Russian Ruble 0.27 0.31 -11 0.30 0.30 - Revenue growth YoY * Trading profit growth YoY * 104,981 93,501 50,000 70,000 90,000 110,000 Reported Constant Currency +37% +22% 15,613 14,181 4,000 8,000 12,000 16,000 Reported Constant Currency +9% -1% Core earnings growth YoY 8,616 7,518 - 3,000 6,000 9,000 Reported Constant Currency +1% -12% * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated Impact of currency movements
    • 39 Pay-TV: US$350m and EUR6m (programming rights and leases) Print: EUR56m and US$11m (paper and ink) Annualised net foreign input costs Pay-TV: long-term commitments, cover up to 100% of rolling 12 - 24 month net inputs Print: short-term commitments, cover maximum 12 months rolling input costs Bond/RCF: hedge interest expense to a maximum of 24 months Hedging strategy Almost all FEC’s qualify for hedge accounting FEC’s US$ FX Cover US$m US$ rate FY15 459 10.44 FY16 81 11.74 EUR FX Cover EURm EUR rate FY15 41 14.83 FX exposure: hedging to manage risk
    • 40 11,480 12,772 3,953 76,776 Mar 13 Exchange rate impact Organic growth Acquisitive growth Mar 14 104,981 Incremental revenue YoY* (ZARm) * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 17% growth from existing operations - Tencent (+36%), Mail.ru (+29%) in local currency - Ecommerce +14% YoY - Pay-TV revenues +12% YoY Organic growth 15% revenue uplift from weaker ZAR Devalued 22% vs. Rmb and 19% vs. US$ Exchange rate Mainly driven by new etail platforms such as eMag, Netretail, Souq and Flipkart Acquisitive growth 37% Components of revenue growth
    • 41 Mar 13 ZARm Mar 14 ZARm % Change Ecommerce 3,259 5,639 73% Pay-TV 897 1,812 >100% Print 111 205 85% Total 4,267 7,656 79% 27,998 33,085 39,486 49,869 62,728 1,240 1,535 2,823 4,267 7,656 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Development spend Revenue and Development spend (ZARm) FY14 split by business segment 5,639 1,812 205 Internet (74%) Pay-TV (24%) Print (2%) As % of revenue* 4.4% 4.6% 7.1% 8.6% 0% 4% 8% 12% Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 * Measured as % of consolidated revenue as development spend does not include associate spending Development spend breakdown 26% 79% 12.2%
    • 42 FY14 development spend by type 3,674 1,465 313 187 Classifieds (65%) eTail (26%) Payments (6%) Other (3%) 4,218 6,643 12,386 20,355 705 1,857 3,259 5,639 - 8,000 16,000 24,000 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Development spend Revenue and development spend (ZARm) 2,046 150 184 3,259 - 2,000 4,000 6,000 Mar 13 Classifieds e-Tail & other Payments Mar 14 Incremental development spend YoY (ZARm) 5,639 Ecommerce: development spend 64% 73%
    • 43* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated R12bn contribution by Tencent and Mail.ru Reduced by ecommerce loss of ZAR5.3bn Increased profitability from: - Allegro marketplace - Price comparison businesses Internet DTT roll-out continuing Accelerated investment in local content Positive contribution from Irdeto Pay-TVFY14 split by business segment* 6,638 8,520 606 Internet (42%) Pay TV (54%) Print (4%) Declining advertising revenues SA profits up marginally Print 15,613 475 (12) 961 (137) 14,326 Mar 13 Internet Pay-TV Print Corp Mar 14 Incremental trading profit by segment* (ZARm) 8% 13% 9%-18% -9% Trading profit* (ZARm) 8,560 10,240 11,662 14,326 15,613 - 4,000 8,000 12,000 16,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Trading profit trimmed by organic expansion CAGR 16%
    • 44 10,157 (280) 10,835 (678) 11,115 Company results PPA adjustments IFRS results Other adjustments Core HEPS Contribution Company PPA IFRS Other Core HEPS ZARm results adjustments results adjustments* contribution Tencent 9,849 - 9,849 (125) 9,724 Mail.ru 1,999 (115) 1,884 (973) 911 Abril (201) (140) (341) 231 (110) Other (532) (25) (557) 189 (368) TOTAL 11,115 (280) 10,835 (678) 10,157 * Headline and core earnings adjustments similar to Naspers methodology Associates and joint ventures contribution to Core HEPS (ZARm) Contribution by associates and joint ventures
    • 45 Mar 13 ZARm Mar 14 ZARm Interest (paid) (1,495) (2,466) Loans and overdrafts (1,044) (1,717) Transponder leases (231) (356) Other (220) (393) Interest received 443 606 Loans and call accounts 408 456 Other 35 150 Other finance costs, net (258) (267) FX translation adjustments (383) (344) BEE preference dividends 125 77 Total finance costs (1,310) (2,127) US$700m 7-year bond issued July 2010: - 6.375% coupon US$1bn 7-year bond issued July 2013: - 6% coupon 5-year US$2.25bn RCF extended to Oct 2018: - US$800m drawn at Mar 2014 - US$800m fixed at 4.3% all-in until March 2016 - Floating interest of 1.75% + 1 month LIBOR Debt Increased 98% YoY from ZAR636m to ZAR1.3bn Net interest paid on loans SSA: 15-yr lease effective Dec 2009 - Cost ~US$40m p.a. SA: 15-yr agreement effective Sep 2012 - Cost ~US$42m p.a. Transponders Net finance costs
    • 46 Mar 13 ZARm Mar 14 ZARm Profit before tax 9,281 9,424 Add back: Development spend 4,267 7,656 Equity results (including impairments) (6,944) (9,634) Other gains and losses 831 1,320 Acquisition gains 143 101 FX gains and losses 373 344 BEE preference dividends (125) (77) Adjusted profit before tax 7,826 9,134 Tax charge (2,533) (2,895) Effective rate 32% 32% Taxation analysis
    • 47 Mar 13 ZARm Mar 14 ZARm Land, buildings & plant 338 767 Transmission equipment 1,468 2,477 Computer, software & network equipment 926 1,023 Other (including vehicles, furniture) 35 372 Capital expenditure 2,767 4,639 Capex/Revenue 6% 7% FY14 split by business Capital expenditure Internet (10%) Pay TV (80%) Print (10%)
    • 48 Current assets Mar 13 ZARm Mar 14 ZARm Inventory 1,936 2,882 Programme and film rights 1,868 1,979 Trade receivables 4,042 4,849 Other receivables 3,149 4,807 Derivative financial assets 449 209 Cash and deposits 15,653 13,664 Assets held for sale 46 - Total 27,143 28,390 Current liabilities Mar 13 ZARm Mar 14 ZARm Current portion of long-term debt 2,296 2,628 Provisions 295 260 Trade payable 4,107 5,318 Accrued expenses and other 9,696 12,912 Tax payable 237 809 Derivative financial liabilities 180 840 Bank overdraft and call loans 1,423 1,081 Total 18,234 23,848 Current assets and liabilities
    • 49 Ongoing M&A activity Total acquisition spend (US$m) 517 754 260 634 Other - 200 400 600 800 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 465
    • 50 Capital expenditure (ZARm) Programming cost (ZARm) Free cash flow (ZARm) 634 977 683 1,128 1,320 - 500 1,000 1,500 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Net additions („000) Digital subscriber mix 29% 35% 37% 37% 34% 28% Mar 13 Mar 14 FY14 revenue split Subscription (80%) Advertising (7%) Hardware sales (6%) Online/Broadband (4%) Other (3%) Premium Compact Lower-end Pay-TV: operational dynamics 4,304 5,497 6,037 6,935 – 2,000 4,000 6,000 8,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 18% 8,213 3,554 3,239 4,123 4,486 3,010 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 33% 656 1,159 1,187 2,030 3,720 – 1,000 2,000 3,000 4,000 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 83% CAGR 18% CAGR 54%
    • 51 Print media: ZARm* Mar 13 Mar 14 % Change Revenue 7,790 8,171 5% Trading profit 546 519 -5% Trading margin 7% 6% *Data for FY14 reflect Media24’s stand-alone results available on www.media24.com Advertising (31%) Printing (29%) Circulation (19%) Books (9%) Other (7%) Distribution (5%) Revenue mix FY14 Retained leadership position in newspapers and magazines Expanded local newspaper footprint Paarl Media diversified into new markets and increased productivity On the Dot expanded its warehousing and online fulfilment business 24.com remained leading digital publisher in Africa Spree established a leading position in online fashion McGregor BFA acquired I-Net Bridge to create strong position in financial data services Operations Capex trend 684 348 360 302 428 - 400 800 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Printing revenue +6%, book publishing +10% YoY Advertising revenue -3%, circulation -2% YoY Good performances from Paarl Media, magazines and schoolbook publishing Financials
    • 52 Print media: BRLm Dec 12 Dec 13 % Change Revenue 2,975 2,733 -8% Trading profit 101 51 -50% *Data reflects 100% of results Jan – Dec 2013; FY14 ZAR/BRL 4.50 (4.24) Advertising revenues remained under pressure as economy stalls, but maintained market share Single copy circulation declined in line with market Restructuring lagging, but comprehensive cost-cutting initiatives are being implemented Operations Tough trading conditions hampered performance ZAR110m loss included in core headline earnings Impaired investment by R1,174m Financials
    • 53 Naspers group structure
    • 5454 ARPU: Average Revenue per User B2C: Business to Consumer C2C: Consumer to Consumer DPS: Dividend per Share DTH: Direct-to-Home Television DTT: Digital Terrestrial Television EPS: Earnings per Share FCF: Free Cash Flow FEC: Forward Exchange Contract GEM: Global Emerging Markets GMV: Gross Merchandise Value HEPS: Headline Earnings per Share HD: High definition IM: Instant Messaging MP: Marketplaces OCS: Online comparison shopping PCU: Peak Concurrent Users PVR: Personal video recorder SNS: Social Network Service SSA: Sub-Saharan Africa Glossary of terms
    • 55 Meloy Horn Office: +27 11 289 3320 Mobile: +27 82 7727 123 E-mail: InvestorRelations@naspers.com Website: www.naspers.com 55 Investor Relations