Financial Results Presentation. For the year ended 31 March 2014

Transcription

1 Financial Results Presentation For the year ended 31 March

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 Overview Financials Internet Pay-TV Outlook Appendix 3

4 Transformation at our core Print 1915 PayTV 1985 Internet 1997 Mobile 2010 Naspers countries 1 > 50 > 80 4

5 Fast changing landscape provides rare opportunities 1 Mobile is transforming the internet, particularly in our markets 2 Our internet focus markets are scaling much faster than average 3 Etail and classifieds are reshaping ecommerce 4 New innovations are emerging outside developed markets 5

6 Mobile transforming internet in our markets Number of internet users (m); Growth (%) Naspers focus markets sample +60% % % % % Russia Indonesia Brazil India China United Kingdom % % % % Germany Japan United States Source: IDC, Naspers 6

7 Japan W EU US LatAm CE EU Asia ex- Japan China Russia Brazil MEA Turkey India Focus internet markets scaling faster than average Growth in internet buyers, CAGR (%) Naspers focus markets sample Source: IDC, Naspers 7

8 Etail and classifieds reshaping ecommerce India: (GMV growth %) Total ecommerce Total classifieds Etail Mobile classifieds Source: IDC, Naspers 8

9 New innovations emerging outside the US WeChat: Transforming social communication, entertainment & ecommerce Mobile payments: Solving unique local problems. Forty percent of Kenya s GDP on mobile Redbus: Aggregating & taking Indian transport mobile LTE/4G: World s first next generation phones & technology Mobile messaging: Developing new revenue streams from micropayments Wearable tech: Developing gesture controlled devices for all possible uses QR codes: First developed in Asia, allows easy offline to online engagement & shopping 9

10 FY14 in review Extended classifieds aggressively, prioritising mobile Continued rapid etail expansion Scaled payments, travel, mobile services Tencent transforming Weixin/WeChat to a broad platform Expanded Pay-TV distribution platforms 10

11 Overview Financials Internet Pay-TV Outlook Appendix 11

12 FY14: Financial synopsis Revenue (ZARbn) Core headline earnings (ZARbn) 26% 1% Core HEPS (ZAR) DPS (ZAR) -2% 10% Mar 13 Mar 14 12

13 Strong performance by established businesses Pay-TV profitability (ZARm)* Tencent profitability (RMBm)* Mail.ru profitability (RURm)* 13% 24% EBITDA (RURm) 31% 5,295 5,927 CAGR +13% 6,379 7,559 8,520 CAGR +34% 9,838 12,254 15,479 19,194 CAGR +63% 8,381 11,535 15,087 6,020 3,628 2,152 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 09 Dec 10 Dec 11 Dec 12 Dec 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. 13

14 Pursuing major new growth opportunities Ecommerce revenue and trading profit/(losses) (ZARm) 24,000 64% 18,000 20,355 12,000 CAGR +60% 12,386 6,000 (6,000) 6,643 4,218 3,085 (107) (207) (1,238) (2,337) (5,329) Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Trading profit/(losses) 14

15 Additional development captures more opportunities Incremental development spend by segment, YoY (ZARm) 73% >100% 86% 79% Ongoing investment Aim is to build new revenue opportunities Funded by internal sources 2, ,656 Internet 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 4,267 Mar 13 Internet Pay-TV Print Mar 14 Pay-TV ZAR1,327m invested in DTT Additional R485m spent on: - online and mobile technologies - decoder development 15

16 Internet largest revenue growth driver and segment Incremental revenue by segment, YoY* (ZARm) 76,776 22,431 65% 20% -2% 37% 6,014 (240) 104,981 Internet 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 Mar 13 Internet Pay-TV Print Mar 14 Mar 13 Internet Pay-TV Print Mar 14 FY14 revenue by business segment* 36,271 11,692 57,018 Internet (54%) Pay TV (35%) Print (11%) Revenue* (ZARm) 105,000 70,000 35,000 37,251 45,108 56,522 76,776 * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated - CAGR 30% 104,981 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Pay-TV Benefited from : - 20% increase in subscribers - 5% increase in subscription rates in SA Print media Tough year throughout Media24 +1% YoY Abril -3% YoY 16

17 Summarised consolidated income statement Mar 13 ZARm Mar 14 ZARm Currency impact Revenue* up 22% in constant US$ rates Revenue* 76, ,981 Less: Associates and joint ventures (26,907) (42,253) Consolidated revenue 49,869 62,728 Trading margin Decline due to step-up in development spend 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) * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated Net finance cost 98% increase in net interest on loans due to: - Higher debt levels to fund acquisitions - Negative effect of currency translation 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 Impairments R1.1bn relates to flash sales fashion businesses Abril fully impaired by a further R1.2bn 17

18 Expansion of DTT and development spend lowers FCF 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, Free cash flow (FCF) 3,683 (349) Capex Pay-TV ZAR3.7bn (mainly DTT) Ecommerce ZAR447m Print ZAR473m Net of proceeds on sale of assets of ZAR197m Finance leases Impacted by new satellite lease for MCSA Tax Increase due to higher profits in SA Investment income Includes ZAR793m dividend from Tencent 18

19 Balance sheet remains sound Mar 14 ZARm Debt: (offshore US$2.6bn) (27,990) Cash: (South Africa R5bn) 12,583 Closing net debt (15,407) Increase US$465m of debt-funded acquisitions Some currency impact on translation Net debt Excludes transponder leases of ZAR7.3bn, considered to be an operating cost Interest cover 10x Gearing 23% 19

20 Overview Financials Internet Pay-TV Outlook Appendix 20

21 Large global internet footprint* * Only includes country of domicile for associates, not their entire footprint 21

22 Naspers has a substantial ecommerce presence Monthly average desktop visits in billions, Y/Y growth % (excl. payments-related properties) % % -2% 24% 1 7% 38% -17% 21% 0 Alibaba Amazon ebay Naspers Mercadolibre JD.com Rakuten Rocket Internet 1Q'13 1Q'14 Source: ComScore, Naspers 22

23 Ecommerce: summary ZARm Mar 13 Mar 14 % Change Revenue 12,386 20,355 64% Trading profit (2,338) (5,329) >-100% Strategic 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 Revenue: YoY growth by type 120% 103% 80% 84% 71% Operational Leadership positions in all key markets Significantly strengthened talent pool Growth accelerating Competition remains strong Mobile on all platforms central to our plan 40% 0% Etail Classifieds Online services 35% 32% 24% OCS Payments Marketplaces Financial Development spend accelerated to R5.6bn 23

24 Ecommerce: classifieds Daily visits (m)* % 25.3 Daily page views (m)* % Strategic 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 - 0 Mar 13 Mar 14 Total page views: YoY growth rates by region* 250% Mar 13 Mar 14 Operational Improved talent and execution Investments in technology, especially mobile Aggressive local marketing 200% 150% 100% 50% 0% 230% 165% 133% 95% Latin America India & SE Asia Africa & Middle East Europe Financial R3.7bn investment in organic growth initiatives, up 126% YoY Monetisation in increasing number of countries * Select criteria as measured for the month of March, not adjusted for acquisitions and disposals and reflecting associates on a proportionate basis 24

25 Strong traction in key markets Mobile net new listings (NNL) Brazil 601% Mobile net new listings (NNL) India 212% Jul Aug Sep Oct Nov Dec Jan Feb Mar Jul Aug Sep Oct Nov Dec Jan Feb Mar Brand awareness (Google) Brand awareness (Google) Jan 12 OLX Bomnegocio May 14 0 Jan 12 May 14 Quikr OLX Sources: Google, Company data 25

26 Ecommerce: etail* Revenue (ZARm) 12,000 8, % 10,705 Strategic Acceleration of organic growth First party base complemented with marketplaces Rapid category and footprint expansion 4,000 - GMV by region 5,283 Mar 13 Mar 14 Operational Global segment approach to etail Investment in fulfilment and distribution capacity Increasingly shaping retail calendar Europe (73%) India & SE Asia (16%) Africa & Middle East (11%) Financial 62% of revenue growth M&A driven Margins typically low, but negative working capital cycle produces cash *Excludes marketplaces, OCS and online services 26

27 Listed internet: RMBm* Dec 12 Dec 13 % Change Revenue 43,894 60,437 38% Operating profit 15,479 19,194 24% Q statistics 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) Operating margin 35% 32% * Reflects 100% of Jan-Dec 2013 results available on FY14 ZAR/RMB 1.66 (1.362) Revenue mix FY14* Operations 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 Value-added services (75%) Ecommerce transactions (16%) Advertising and other (9%) Financials Solid growth in revenues and profits Good growth in performance-based social advertising, as well as online video advertising 27

28 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 FY14 ZAR/RUR 0.31 (0.27) Q statistics 59m total monthly users of Mail.ru portal 7.6m monthly paying users on platform Operations Online games and IVAS performed well Warface gaining traction in users and revenues On-going user migration to mobile Contextual advertising strong Revenue mix FY14* Community IVAS (32%) Display advertising (20%) MMO Games (24%) Contextual advertising (14%) Other (10%) Financial Good results across all major segments Net profit up 36% YoY Other One-off gains after selling Facebook and Qiwi shares Launched My.com in US Increased stake in VKontakte from 40% to 52% 28

29 Overview Financials Internet Pay-TV Outlook Appendix 29

30 Pay-TV: strategy 1. Accelerated investment in local content 2. Enhanced product offering and improved services 3. Investment in DTT to bring paytv to the mass market 30

31 18,810 5,295 22,259 5,927 25,259 6,379 30,257 7,559 8,520 36,271 Pay-TV: now servicing 8m households Pay-TV subscriber homes ( 000) 10,000 8,000 6,000 4,000 2,000 1,099 1,439 1,630 2,288 3,051 2,852 3,489 3,981 4,451 5,008 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Pay-TV financials (ZARm) 28% South Africa Sub-Saharan Africa Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue 27% CAGR 18% Trading profit 25% 25% Margin 20% 23% Subscribers 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. Operations Introduced new low cost bouquets Launched Explora PVR with expanded hard drive Expanded BoxOffice GOtv (DTT) continued roll-out Regulatory and competition intensifying Financials Margin pressure due to - investment in local content - higher fx rates - DTT costs (including inventory build-up) Irdeto returned to profitability 31

32 Digital Terrestrial Television (DTT) DTT Subscribers ( 000) Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Now in 11 countries Covering 112 Cities Analogue switch-off (ASOs) starting to gain pace Sep 13 Mar 14 Dec 14 Jun

33 Overview Financials Internet Pay-TV Outlook Appendix 33

34 FY15 Outlook: growth and business model expansion Ecommerce Step-up growth in classifieds Accelerate growth in etail, including footprint expansion Push further on new growth areas (online services) Pay-TV Capture growth opportunity in DTT across Africa Invest aggressively in online content delivery options Deal with competitive and regulatory challenges FY15 Financials Revenue growth to advance further Development spend at higher levels Leverage cash from established businesses to fund growth 34

35 Overview Financials Internet Pay-TV Outlook Appendix 35

36 Consolidated income statement US$ 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, 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, Taxation (2,533) (2,895) (296) (284) Net profit 6,748 6, Attributable to: Naspers 6,047 5, Minorities FY14 ZAR/US$ (8.55) 36

37 Core headline earnings 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 Fair value adjustments & currency translations 273 (47) Core headline earnings 8,533 8,616 37

38 Impact of currency movements ZAR weakness positively impacted translation of offshore earnings Revenue growth YoY * Trading profit growth YoY * Core earnings growth YoY 110,000 90,000 70, % 104, % 93,501 16,000 12,000 8,000 +9% 15,613-1% 14,181 9,000 6,000 3,000 +1% 8,616-12% 7,518 50,000 Reported Constant Currency 4,000 Reported Constant Currency - Reported Constant Currency * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated Average Closing rate Currency (ZAR = 1FC) Mar 13 Mar 14 % change Mar 13 Mar 14 % change US dollar Euro Chinese Yuan/Renminbi Brazilian Real Polish Zloty Russian Ruble

39 FX exposure: hedging to manage risk US$ FX Cover US$m US$ rate FY FY EUR FX Cover EURm EUR rate FY Annualised net foreign input costs Pay-TV: US$350m and EUR6m (programming rights and leases) Print: EUR56m and US$11m (paper and ink) Hedging strategy Pay-TV: long-term commitments, cover up to 100% of rolling 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 FEC s Almost all FEC s qualify for hedge accounting 39

40 Components of revenue growth Incremental revenue YoY* (ZARm) 37% 11,480 12,772 3, ,981 76,776 Mar 13 Exchange rate impact Organic growth Acquisitive growth Mar 14 * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated Organic growth 17% growth from existing operations - Tencent (+36%), Mail.ru (+29%) in local currency - Ecommerce +14% YoY - Pay-TV revenues +12% YoY Exchange rate 15% revenue uplift from weaker ZAR Devalued 22% vs. Rmb and 19% vs. US$ Acquisitive growth Mainly driven by new etail platforms such as emag, Netretail, Souq and Flipkart 40

41 Development spend breakdown Mar 13 ZARm Mar 14 ZARm % Change Revenue and Development spend (ZARm) 26% 79% Ecommerce 3,259 5,639 73% 62,728 49,869 Pay-TV 897 1,812 >100% Print % 27,998 39,486 33,085 1,240 1,535 2,823 4,267 7,656 Total 4,267 7,656 79% Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Development spend FY14 split by business segment As % of revenue* 1, Internet (74%) 12% 8% 8.6% 12.2% Pay-TV (24%) 7.1% Print (2%) 4% 4.4% 4.6% 5,639 0% Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 * Measured as % of consolidated revenue as development spend does not include associate spending 41

42 Ecommerce: development spend Revenue and development spend (ZARm) 24,000 64% 73% 16,000 8,000-4, ,643 1,857 12,386 3,259 20,355 Mar 11 Mar 12 Mar 13 Mar 14 Revenue Development spend 5,639 FY14 development spend by type Incremental development spend YoY (ZARm) 6, , Classifieds (65%) etail (26%) Payments (6%) 4,000 2,046 5,639 3,674 Other (3%) 2,000 3,259 - Mar 13 Classifieds e-tail & other Payments Mar 14 42

43 Trading profit trimmed by organic expansion Incremental trading profit by segment* (ZARm) 14,326 8% 13% -18% -9% 9% (137) (12) 15,613 Internet R12bn contribution by Tencent and Mail.ru Reduced by ecommerce loss of ZAR5.3bn Increased profitability from: - Allegro marketplace - Price comparison businesses Mar 13 Internet Pay-TV Print Corp Mar 14 FY14 split by business segment* 606 6,638 8,520 Trading profit* (ZARm) 16,000 12,000 8,000 8,560 CAGR 16% 10,240 11,662 14,326 15,613 Pay-TV DTT roll-out continuing Accelerated investment in local content Positive contribution from Irdeto Print 4,000 Declining advertising revenues SA profits up marginally Internet (42%) Pay TV (54%) Print (4%) - Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 * Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated 43

44 Contribution by associates and joint ventures 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) 11,115 (280) 10,835 (678) 10,157 Company results PPA adjustments IFRS results Other adjustments Core HEPS Contribution 44

45 Net finance costs Mar 13 ZARm Mar 14 ZARm Debt US$700m 7-year bond issued July 2010: % coupon Interest (paid) (1,495) (2,466) Loans and overdrafts (1,044) (1,717) Transponder leases (231) (356) Other (220) (393) Interest received Loans and call accounts Other 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 US$800m fixed at 4.3% all-in until March Floating interest of 1.75% + 1 month LIBOR Net interest paid on loans Increased 98% YoY from ZAR636m to ZAR1.3bn Other finance costs, net (258) (267) FX translation adjustments (383) (344) BEE preference dividends Total finance costs (1,310) (2,127) Transponders SSA: 15-yr lease effective Dec Cost ~US$40m p.a. SA: 15-yr agreement effective Sep Cost ~US$42m p.a. 45

46 Taxation analysis 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 FX gains and losses BEE preference dividends (125) (77) Adjusted profit before tax 7,826 9,134 Tax charge (2,533) (2,895) Effective rate 32% 32% 46

47 Capital expenditure Mar 13 ZARm Mar 14 ZARm FY14 split by business Land, buildings & plant Transmission equipment 1,468 2,477 Computer, software & network equipment 926 1,023 Other (including vehicles, furniture) Capital expenditure 2,767 4,639 Capex/Revenue 6% 7% Internet (10%) Pay TV (80%) Print (10%) 47

48 Current assets and liabilities Current assets Mar 13 ZARm Mar 14 ZARm Current liabilities Mar 13 ZARm Mar 14 ZARm Inventory 1,936 2,882 Current portion of long-term debt 2,296 2,628 Programme and film rights 1,868 1,979 Provisions Trade receivables 4,042 4,849 Trade payable 4,107 5,318 Other receivables 3,149 4,807 Accrued expenses and other 9,696 12,912 Derivative financial assets Tax payable Cash and deposits 15,653 13,664 Derivative financial liabilities Assets held for sale 46 - Bank overdraft and call loans 1,423 1,081 Total 27,143 28,390 Total 18,234 23,848 48

49 Ongoing M&A activity Total acquisition spend (US$m) Other Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 49

50 Pay-TV: operational dynamics Net additions ( 000) FY14 revenue split Capital expenditure (ZARm) 1,500 1, ,320 1, Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Subscription (80%) Advertising (7%) Hardware sales (6%) Online/Broadband (4%) Other (3%) 4,000 3,000 2,000 1, CAGR 54% 1,159 1,187 2,030 3,720 83% Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Digital subscriber mix Programming cost (ZARm) Free cash flow (ZARm) 34% 37% 28% 37% 8,000 6,000 4,000 4,304 CAGR 18% 5,497 6,037 6,935 8,213 18% 3,554 3,239 4,123 4,486 3,010 33% 29% 35% 2,000 Mar 13 Mar 14 Premium Compact Lower-end Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 50

51 Print media: ZARm* Mar 13 Mar 14 % Change Revenue 7,790 8,171 5% Trading profit % Trading margin 7% 6% *Data for FY14 reflect Media24 s stand-alone results available on Revenue mix FY14 Capex trend 800 Operations 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 684 Advertising (31%) Printing (29%) Circulation (19%) Books (9%) Other (7%) Distribution (5%) Mar 10 Mar 11 Mar 12 Mar 13 Mar 14 Financials Printing revenue +6%, book publishing +10% YoY Advertising revenue -3%, circulation -2% YoY Good performances from Paarl Media, magazines and schoolbook publishing 51

52 Print media: BRLm Dec 12 Dec 13 % Change Revenue 2,975 2,733-8% Trading profit % *Data reflects 100% of results Jan Dec 2013; FY14 ZAR/BRL 4.50 (4.24) Operations 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 Financials Tough trading conditions hampered performance ZAR110m loss included in core headline earnings Impaired investment by R1,174m 52

53 Naspers group structure 53

54 Glossary of terms ARPU: Average Revenue per User GMV: Gross Merchandise Value B2C: Business to Consumer HEPS: Headline Earnings per Share C2C: Consumer to Consumer HD: High definition DPS: Dividend per Share IM: Instant Messaging DTH: Direct-to-Home Television MP: Marketplaces DTT: Digital Terrestrial Television OCS: Online comparison shopping EPS: Earnings per Share PCU: Peak Concurrent Users FCF: Free Cash Flow PVR: Personal video recorder FEC: Forward Exchange Contract SNS: Social Network Service GEM: Global Emerging Markets SSA: Sub-Saharan Africa 54 54

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