JSE Sens

NASPERS LIMITED - Trading statement

12 June 2019 - 17:30 PM
NPN
Trading statement

Naspers Limited
(Incorporated in the Republic of South Africa)
(Reg. No 1925/001431/06)
JSE Share Code: NPN        ISIN: ZAE000015889
LSE ADS Code: NPSN         ISIN: US6315121003
(Naspers)

Trading statement

Shareholders are advised that the Naspers group (the group) is finalising its provisional report and consolidated annual financial
statements for the year ended 31 March 2019.

During the current year the group distributed its interest in its video-entertainment business, MultiChoice Group Limited
(MultiChoice Group), to its shareholders as a pro rata distribution in specie (the distribution). Following the distribution, the results
of the video-entertainment segment have been presented as results from discontinued operations. The prior year income
statement has been restated to distinguish between continuing and discontinued operations.

The group has illustrated the anticipated changes in core headline earnings, earnings and headline earnings per share for the year
ended 31 March 2019 as compared to 31 March 2018 for both total operations (as previously reported) and continuing operations
in the tables below:

  Total operations                                                   31 March 2019
                                           31 March 2018
                                                                        expected                 Expected
                                            (as reported)
                                                                  increase/(decrease)      increase/(decrease)%
                                              US cents
                                                                        US cents
  Core headline earnings per share(1)                     581                180  191                 31%  33%
  Earnings per share(2)                                 2 631          (1 052)  (1 026)            (40%)  (39%)
  Headline earnings per share(3)                          416                491  503               118%  121%

  Continuing operations                                              31 March 2019
                                           31 March 2018
                                                                        expected                 Expected
                                            (as reported)
                                                                  increase/(decrease)      increase/(decrease)%
                                              US cents
                                                                        US cents
  Core headline earnings per share(1)                     553                133  145                 24%  26%
  Earnings per share(2)                                 2 604          (1 641)  (1 614)            (63%)  (62%)
  Headline earnings per share(3)                          387                468  480               121%  124%

(1)
      Shareholders are reminded that the board considers core headline earnings an appropriate indicator of the operating
      performance of the group, as it adjusts for non-operational items.
(2)
      Earnings per share was impacted significantly by the gain of US$1.6bn recognised on disposal of the groups interest in Flipkart
      Limited as well as by a gain recorded on the distribution of the MultiChoice Group to the groups shareholders. The latter gain
      is not part of earnings from continuing operations. The decline in earnings from the prior year was mainly due to the gain of
      US$9.1bn recognised on the sale of a 2% interest in Tencent Holdings Limited (Tencent) in March 2018, which is non-recurring
      in March 2019.
(3)
      Headline earnings per share increased considerably as a result of the groups share of fair-value gains recognised by Tencent
      on certain of its investments now classified as at fair value through profit and loss in terms of IFRS 9 Financial Instruments.
      These gains are not adjusted for when calculating headline earnings per share.

Further details will be provided in the summarised consolidated financial results, due for release on 21 June 2019. Financial
information on which this trading statement is based has not been reviewed or reported on by the companys auditors.
                Naspers Limited
                Trading statement


The groups summarised consolidated income statement and segmental review for the year ended 31 March 2018, restated for
the presentation of the video-entertainment segment as a discontinued operation, is illustrated below.

Summarised consolidated income statement                                                                             2018
for the year ended 31 March                                                                                   Restated(1)
                                                                                                                  US$'m

 Continuing operations
 Revenue from contracts with customers                                                                              2 985
 Cost of providing services and sale of goods                                                                      (1 884)
 Selling, general and administration expenses                                                                      (1 728)
 Other (losses)/gains  net                                                                                           ( 32)
 Operating loss                                                                                                     ( 659)
 Interest income                                                                                                        52
 Interest expense                                                                                                   ( 197)
 Other finance income/(costs)  net                                                                                 ( 379)
 Share of equity-accounted results                                                                                  3 285
 Impairment of equity-accounted investments                                                                           ( 46)
 Dilution (losses)/gains on equity-accounted investments                                                            9 216
 Gains/(losses) on acquisitions and disposals                                                                         ( 93)
 Profit before taxation                                                                                            11 179 -

 Taxation                                                                                                             ( 70)
 Profit from continuing operations                                                                                 11 109
 Profit from discontinued operations                                                                                  190
 Profit for the year                                                                                               11 299
 Attributable to:
 Equity holders of the group                                                                                       11 358
 Non-controlling interest                                                                                             ( 59)
                                                                                                                   11 299
(1)
      Relates to the impact of adopting IFRS 15, as outlined in the groups interim results for the period ended
      30 September 2018.
         Naspers Limited
         Trading statement


Per share information
                                                                 31 March
                                                                     2018
                                                                    US$m
Per share information related to continuing operations
Core headline earnings for the period (US$m)                      2 388
Core headline earnings per N ordinary share (US cents)               553
Diluted core headline earnings per N ordinary share (US cents)       540
Headline earnings for the period (US$m)                           1 670
Headline earnings per N ordinary share (US cents)                    387
Diluted headline earnings per N ordinary share (US cents)            374
Earnings per N ordinary share (US cents)                           2 604
Diluted earnings per N ordinary share (US cents)                   2 585
Per share information related to discontinued operations
Core headline earnings for the period (US$m)                        120
Core headline earnings per N ordinary share (US cents)                28
Diluted core headline earnings per N ordinary share (US cents)        28
Headline earnings for the period (US$m)                             125
Headline earnings per N ordinary share (US cents)                     29
Diluted headline earnings per N ordinary share (US cents)             28
Earnings per N ordinary share (US cents)                              27
Diluted earnings per N ordinary share (US cents)                      27
Net number of shares issued (000)
- at period end                                                  432 126
- weighted average for the period                                431 635
- diluted weighted average                                       433 003
            Naspers Limited
            Trading statement


 Segmental review
                                                                                                                  Trading
                                                                    Revenue             EBITDA(1)                   profit
                                                                                  Year ended 31 March
                                                                        2018                2018                    2018
                                                                       US$'m              US$'m                    US$'m
 Continuing operations
 Internet                                                              15 863                  3 342                 3 013
 Ecommerce                                                              3 582                  ( 655)                ( 713)
  - Classifieds                                                           628                    ( 99)               ( 114)
  - Payments and fintech                                                  294                    ( 60)                 ( 64)
  - Food delivery                                                         166                    ( 20)                 ( 30)
  - Etail                                                               2 060                  ( 248)                ( 270)
  - Travel(2)                                                             211                    ( 59)                 ( 61)
  - Other(3)                                                              223                  ( 169)                ( 174)
 Social and internet platforms                                         12 281                  3 997                 3 726
  - Tencent                                                            12 024                  3 925                 3 675
  - Mail.ru                                                               257                      72                    51
 Media(4)                                                                 507                      10                     3
 Corporate segment                                                           2                   ( 18)                 ( 22)
 Intersegmental                                                           ( 20)                      -                     -
 Total economic interest from continuing
 operations                                                            16 352                  3 334                 2 994
 Less: Equity-accounted investments                                   (13 367)                (3 744)               (3 449)
 Total consolidated from continuing operations                          2 985                  ( 410)                ( 455)
 Total from discontinued operations                                     3 672                    669                   415
 Consolidated(5)                                                        6 657                    259                   ( 40)
(1)EBITDA  refers to earnings before interest, taxation, depreciation and amortisation.
(2)
   Travel revenue for the period ended 31 March 2018 has been reduced by US$65m due to the effect of the adoption of IFRS 15 on the group's associate MakeMyTrip Limited. This adjustment did not have an impact
on EBITDA or trading profit.
(3) The group historically allocated a portion of its corporate costs to the video-entertainment segment. Following the distribution of the MultiChoice Group to shareholders in the current year, and the consequent

presentation of the video-entertainment segment as a discontinued operation, corporate costs are now only allocated to the ecommerce business. The group views these corporate costs as primarily relating to the
support of the ecommerce business. In line with IFRS 8 Operating Segments the group has accordingly presented the comparative information contained in the segmental review on a similar basis.
(4)31 March 2018 includes revenue of US$133.0m, EBITDA of US$33.3m and trading profit of US$33.3m relating to Novus Holdings Limited (Novus). The group distributed the majority of its shareholding in Novus to its
shareholders in September 2017.
(5)Includes the results of the video-entertainment segment which has been classified as a discontinued operation.



Sponsor: Investec Bank Limited
Cape Town
12 June 2019

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