Financial results presentation. For the six months ended 30 September 2016

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1 Financial results presentation For the six months ended 30 September 2016

2 Important information This presentation contains forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 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

3 STRATEGIC OVERVIEW

4 1H FY17 Overview: continue building platforms to optimise returns LEAD IN ECOMMERCE TARGET HIGH-GROWTH BUSINESS MODELS PURSUE SCALE TRANSFORM FURTHER INTO MOBILE OPTIMISE RETURNS 4

5 Target high-growth business models Monthly unique listers - USA PSP revenue growth - India Number of orders - Brazil 139% 71% 178% Mar 16 Sep 16 1H FY16 1H FY17 1H FY16 1H FY17 Mobile classifieds Payments Food delivery Source: Company data 5

Pursue scale: merging to create a leading

1m Total transactions (1) 9.7m Air (1) 6.

31 March 2016 and combined on a pro-forma

6 Pursue scale: merging to create a leading Indian travel position + Key terms MMYT shareholders 60% (Ctrip 10%) Ibibo shareholders 40% Working capital contribution by Naspers Subject to regulatory approvals Closing by end Jan 2017 Key benefits Increased operating scale Accelerated tech innovation Potential value creation from synergies Strengthened depth of management 34.1m Total transactions (1) 9.7m Air (1) 6.6m Hotel (1,3) 17.5m Bus (1) 45% Mobile (1,2) Note: 1) Financials and KPIs for fiscal year ended 31 March 2016 and combined on a pro-forma basis 2) Includes Air, Hotel and Bus transactions only 3) Includes MMYT s international standalone hotel transactions 6

Pursue scale classifieds and payments Classifieds: LetGo accelerating vs.

25x MAUs * USA Size vs. OfferUP 0.53x 1.

customers and +200k merchants Benefits: new verticals (airlines and telco), innovative products

7 Pursue scale classifieds and payments Classifieds: LetGo accelerating vs. OfferUp* Payments: Citrus acquisition by PayU Jan 16 Sep x Downloads 1.25x MAUs * USA Size vs. OfferUP 0.53x 1.15x Largest ever all-cash M&A deal in Indian fintech history Increased customer base to >30m customers and +200k merchants Benefits: new verticals (airlines and telco), innovative products (LazyPay and SellFie), additional expertise Strong starting point for a consumer play and for expansion of financial services proposition to consumer credit Source: Company data; AppAnnie; Press releases 7

8 Transform further into mobile Classifieds: Substantial active user growth on OLX app App MAU (daily, m)* Mobile growth in % time spent across Naspers platforms User time spent Naspers platforms (mobile share) 77% 66 52% 55% 37 2Q FY16 2Q FY17 Source: Company data Sep 15 Sep 16 *Reflects associates and JVs on a proportionate basis based on economic interest as per Sep 2016 Source: Similarweb 8

Allegro: disposal to realise value for shareholders Sold for US$3.

strategy to find and realise value for shareholders Price implies FY16 EBITDA multiple of 18.

Oct 2016, subject to approvals; expect to close in Jan 2017 Financial summary (US$m) Returns (US$m) 313 321 193

9 Allegro: disposal to realise value for shareholders Sold for US$3.253bn Buyers: Cinven, Permira and Mid-Europa private equity funds Terms and rationale Sale consistent with strategy to find and realise value for shareholders Price implies FY16 EBITDA multiple of 18.3x Transaction is tax neutral Proceeds to pay down debt, fund operations and future investments Announced 14 Oct 2016, subject to approvals; expect to close in Jan 2017 Financial summary (US$m) Returns (US$m) FY15 FY16 1H FY16 1H FY17 Revenue Trading profit Free cash flow ~3x ,485 Initial investment 3, Total return Sale price Net cash flows 9

10 FINANCIALS

11 Synopsis of financials Revenue* (US$m) Development spend* (US$m) Currency impact 16% (27%) 23% (27%) ,861 6, H FY16 1H FY17 1H FY16 New investments 1H FY17 Trading profit* (US$m) Core HEPS (USc) 21% (42%) 25% 196 1,214 1, H FY16 1H FY17 1H FY16 1H FY17 *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 11

12 Revenue: Tencent and ecommerce drives acceleration in growth rate YoY revenue growth rate* (%) Revenue* by segment (US$m) 26% 22% 20% 27% Ecommerce (20%) Listed investments (52%) Video entertainment (24%) FY15 FY16 1H FY16 1H FY17 Media & other (4%) *Growth rates in local currency, excluding M&A Incremental revenue* by segment, YoY (US$m) YoY change (%) 24% 46% 6% 1% n/a 9% 16% (27%) 258 1, (3) (68) (548) 5,861 6,788 1H FY16 Ecommerce Listed investments Video entertainment Media M&A and other Forex 1H FY17 *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 12

13 Development spend: increase due to new growth initiatives Consolidated development spend (US$m) Development spend* by segment (US$m) % (42%) FY14 FY15 FY16 1H FY16 1H FY17 Operating New investments Currency impact Classifieds (44%) Etail (26%) Other ecommerce (19%) Video entertainment (9%) Media (2%) Incremental development spend* by segment, YoY (US$m) YoY change (%) >100% 17% 12% 3% 23% (27%) 152 (42) (7) (11) 404 Hotels 496 1H FY16 New investments Operating Associates Forex 1H FY17 *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 13

14 Increase in number of profitable ecommerce businesses Number of profitable ecommerce entities Financial progress of profitable entities* (US$m) Trading profit Revenue 38% (25%) % (58%) FY15 FY16 1H FY16 1H FY17 FY 15 FY 16 1H FY16 1H FY17 *Organic growth on a pro-forma basis, i.e. adjusting prior year numbers on a like-for-like basis, would have been 18% for revenue and 50% for trading profit 14

15 Recent M&A activity focused on Edtech Acquisition spend over time (US$m) 1H FY17 M&A by segment (US$m) 1,495 Other Other Naspers Ventures (89%) yr average US$406m* Classifieds (8%) Travel (1%) Other (2%) FY14 FY15 FY16 1H FY16 1H FY17 * Calculated from March 2012 March 2016 (excluding Avito) 15

16 Summarised income statement US$m 1H FY16 1H FY17 Revenue* 5,861 6,788 Less: Equity-accounted investments (2,878) (3,830) Consolidated revenue 2,983 2,958 Trading profit Trading margin 8% 2% Net finance costs (156) (165) Share of equity accounted results Impairments (141) (28) Taxation (146) (144) Net profit Core headline earnings Core headline EPS (US$) *Based on economic interest, i.e. Equity-accounted investments are proportionately consolidated. 16

17 Free cash flow impacted by reduced profitability of VE in SSA FCF breakdown (US$m) 120 (174) 46 (13) (1) (4) 24 1H FY16 Cash from operations Working capital Capex Dividends received Other 1H FY17 17

18 Balance sheet remains strong US$m 1H FY17 Group net consolidated debt (US$m) 30% 23% 32% 30% Debt (1) : (offshore US$2.9bn) 3,007 1,994 12% 2,213 13% 20% 10% Cash: (South Africa US$550m) 1,511 1,461 1,213 1,496 0% -10% Closing net debt 1,496-20% Gearing 13% - FY14 FY15 FY16 1H FY16 1H FY17 Net debt Gearing % -30% (1) Excludes satellite lease liabilities (US$1,232m) and non-interest bearing debt (US$161m) 18

19 INTERNET

20 Ecommerce: continues to grow rapidly Revenue and trading losses* (US$m) Revenue split Etail (55%) Marketplace (14%) Classifieds (14%) Other (6%) 2,492 2, % (24%) Payments (6%) Travel (5%) 1,986 1,210 1,379 1% (14%) Constant currency revenue growth by type (516) (543) (541) 10 (296) (292) 76% 75% FY14 FY15 FY16 1H FY16 1H FY17 30% 29% 16% -6% Revenue Trading losses Currency impact Classifieds Travel Marketplace Payments Etail Other *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 20

21 B2C: benefiting from steady increase in online penetration B2C: Revenue* (US$) B2C: GMV (US$m)* 1,707 7,150 27% 1,459 19% (20%) 5,677 2,539 3,249 4, FY15 FY16 1H FY15 1H FY16 1H FY17 B2C: 1H FY17 GMV by region* India & SE Asia (35%) FY14 FY15 FY16 1H FY16 1H FY17 Currency impact Europe (60%) Africa & Middle East (5%) *Includes etail, structured and unstructured marketplaces as well as travel but excludes Netretail and Ricardo which were sold. 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. *Allegro accounted for 76% of Europe GMV 21

22 Flipkart: competitive market, still early days for India B2C Flipkart is #1 ecommerce platform in India Flipkart mobile monthly active users (m) 27% Brand awareness 1 49% 30% 14% Visited in past year 85% 79% 63% Purchased in past 6 months 58% 45% 28% Most favourite brand 47% 28% 16% 1H FY16 Source: Company data, excludes Myntra and Jabong 1H FY17 NPS Source: KANTAR TNS, 1Top of mind brand awareness (responses from a survey of 1,508 Indian online shoppers across 8 tier 1 & 2 cities fielded in October 2016). ecommerce/capita (US$, 2016) US China Russia Brazil India Source: Euromonitor 22

23 Classifieds: global footprint for the OLX Group Global footprint 44 Countries 25 Offices Mobile leadership #1 app 22 COUNTRIES (1) 1) Google play store; shopping/lifestyle categories 2) Numbers reflect proportionate pickup of JVs +4.4 APP RATING Scale2 +1.9bn MONTHLY VISITS +37b MONTHLY PAGE VIEWS 23

24 Classifieds: top line growth while managing profitability Revenue* (US$m) 1H FY17 Marketing spend* % (77%) letgo % FY15 FY16 1H FY16 1H FY17 Currency impact 1H FY16 1H FY17 *Data reflects 100% of controlled entities and proportionate share of JVs. Historic numbers presented on a pro-forma basis for the increased investment in Avito from 22.2% at 1H FY16 to 71% at 1H FY17. YoY revenue growth on a reported basis was 115%. 24

25 Classifieds: continue to monetise while entering new markets Naspers positions (number of countries) Entering Fighting Leading Leading and monetising HFY15 2HFY15 1HFY16 2HFY16 1HFY17 Monthly unique listers (m)* Net new listings (daily, m)* 35% 32% App MAU (m)* 77% Sep 15 Sep 16 Sep 15 Sep 16 Sep 15 Sep 16 *Data reflects 100% of controlled entities and proportionate share of JVs as per September

26 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Classifieds: C2C trade drives our business Our traffic engine continues to spin (App MAU, indexed to Sep 14)* allowing us to monetize in the verticals (NNL and Revenue share by category)* +6.7x 100% = NNL 55% 17% 8% 20% NNL15m +3.5x Revenue 5% 17% 31% 28% 19% US$23m Avito Poland C2C Goods Cars Prop Other Ad *Data reflects information relating to our classifieds sites in Poland and Russia 26

27 Classifieds: Russia (Avito) expanding monetisation YoY growth in key metrics (Sep 15 vs. Sep 16) Revenue split listing fees growing strongly MAUs +16% 6% 3% 8% 30% 28% Shop fees Listing fees MULs +18% 22% Advertising # of paid listings +6x 59% 44% Value-added services 1H FY16 1H FY17 Revenue (RUBb) % 6.1 EBITDA (RUBb) % FY15 FY16 1H FY16 1H FY17 Note: 1H FY17 Revenue/Internet User = RUB64 FY15 FY16 1H FY16 1H FY17 Note: 1H FY17 EBITDA/Internet User = RUB38 27

28 Classifieds: Poland extending leadership in key verticals Format Brand Revenue (PLN per internet user) Horizontal +57% Vehicles Real estate 1H FY16 2H FY16 1H FY17 28

29 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Classifieds: letgo increasing investment to accelerate growth Mobile Monthly Active Users (Mobile MAUs) Monthly unique listers +15% 72% of total letgo OfferUp 5Miles Close5 Returning New Source: AppAnnie Pro Source: Letgo DB 29

30 20,496 19,715 28,171 30,411 41,764 Listed internet: Tencent continues to perform Tencent operating profit (RMBm)* Revenue mix 1H FY16 Value-added services (75%) CAGR +43% Online advertising (17%) 43% Other (8%) Monthly active user accounts (m): Weixin & WeChat 30% H FY15 1H FY16 *Reflects 100% of Jan-Jun 2016 (1H FY16) results on a non-gaap basis; detailed results available at Fx rate: 1H FY17 US$/RMB6.616 (6.361) 3Q 15 3Q 16 Note: Monthly active users reflect the most current update from Tencent 30

31 8,421 8,691 15,087 16,850 18,123 Listed internet: Mail.ru delivers strong VK performance but slower games Mail.ru EBITDA (RUBm) Revenue mix 1H FY16* CAGR +10% 3% Online advertising (43%) Community IVAS (32%) MMO Games (22%) H FY15 1H FY16 *Reflects 100% of 1H FY16 aggregate segment performance as reported. For IFRS results with full disclosure refer to Fx rate: 1H FY17 US$/RUR (58.367) Other (3%) 31

32 VIDEO ENTERTAINMENT

33 VE: solid subscriber growth, changing mix Video entertainment subscriber homes ( 000) 8% Change in subscriber mix Total 6,005 7,259 8,402 10,234 11,002 2,240 2,626 2,005 3,266 2,428 +5% 2,553 5,368 5, , , ,355 2,243 +7% 2,401 1H FY16 1H FY17 22% 18% 4,168 4,699 5,174 5,563 +9% 6,048 26% 30% 52% 52% 1H FY13 1H FY14 1H FY15 1H FY16 1H FY17 SA DTH SSA DTH SSA DTT 1H FY16 1H FY17 Premium Compact Lower-end 33

34 VE: financials hit by local currency pricing vs. USD input costs Video entertainment (VE) financials (US$m) 3,582 3,830 3,413 8% 1,790 1, % FY14 FY15 FY16 1H FY16 1H FY17 Revenue Trading profit Development spend (US$m) Capital expenditure (US$m) Programming and production costs (US$m) % % 977 1,133 1, % FY14 FY15 FY16 1H16 1H17 FY14 FY15 FY16 1H16 1H17 FY14 FY15 FY16 1H16 1H17 One-off 34

597 494 1,100 1,272 1,135 VE: SSA operational progress

108 215 121 208 6 month average 33 126 (321) 1H13 2H13 1H14

significantly impacting trading profit (US$m) Nigeria Zambia

(58) 6 (103) (56) (38) (103) FY14 FY15 FY16 1H FY16 1H FY17

35 ,100 1,272 1,135 VE: SSA operational progress negated by Naira devaluation SSA net additions ( 000) month average (321) 1H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 YoY currency declines significantly impacting trading profit (US$m) Nigeria Zambia Kenya Angola 0% 3% -11% (42) -59% Weighted average -23% 72 (58) 6 (103) (56) (38) (103) FY14 FY15 FY16 1H FY16 1H FY17 *Based on monthly Naspers average closing rates Revenue Trading profit 35

36 1,358 1,341 2,702 2,855 2,604 VE: solid results by DTH South Africa SA DTH net additions ( 000) mainly middle and lower tiers month average H13 2H13 1H14 2H14 1H15 2H15 1H16 2H16 1H17 SA currency declined materially, but cost controls muted margin pressure 1H FY15 1H FY16 1H FY17-9% -18% -14% FY14 FY15 FY16 1H FY16 1H FY17 Revenue Trading profit 36

541 873 817 2,553 2,404 2,428 2,256 DTT trading margin (%) FY14 1H

37 VE: DTT moving toward profitability Subscribers (m) Sep 16 Mar 16 Sep 15 Mar 15 Sep 14 Mar 14 Sep 13 Mar 13 Sep 12 Mar ,553 2,404 2,428 2,256 DTT trading margin (%) FY14 1H FY15 FY15 1H FY16 FY16 1H FY17 (27%) (23%) (16%) (140%) (83%) (115%) 37

38 OUTLOOK

39 FY17 Outlook: continue building our platforms LEAD IN ECOMMERCE TARGET HIGH-GROWTH BUSINESS MODELS PURSUE SCALE TRANSFORM FURTHER INTO MOBILE OPTIMISE RETURNS Build strong global or regional leaders Classifieds, Fintech, O2O and Connected video Pursue further scale through organic growth Mobile first or only across the business Reduce development spend in existing footprint. Deploy capital to highest return opportunities 39

40 APPENDIX

41 Glossary of terms ARPU: Average Revenue Per User B2C: Business to Consumer C2C: Consumer to Consumer CAGR: Cumulative Annual Growth Rate DPS: Dividend per Share DTH: Direct-to-Home DTT: Digital Terrestrial Television EPS: Earnings per Share FCF: Free Cash Flow GMV: Gross Merchandise Value HEPS: Headline Earnings per Share IVAS: Internet Value-Added Service LC: Local currency M&A: Mergers and Acquisitions O2O: Online to Offline OTA: Online Travel Agent PVR: Personal Video Recorder ROI: Return on Investment SSA: Sub-Saharan Africa SVOD: Subscription Video-On-Demand TPV: Total Payment Value VE: Video Entertainment 41

THANK YOU Meloy Horn +27 11 289 3320 +27 82 7727

42 THANK YOU Meloy Horn

Financial results presentation. For the six months ended 30 September 2017

Financial results presentation For the six months ended 30 September 2017 Important information This presentation contains forward-looking statements as defined in the United States Private Securities