Financial results presentation - Naspers · 2019. 8. 14. · For the year ended 31 March 2012 ....
Transcript of Financial results presentation - Naspers · 2019. 8. 14. · For the year ended 31 March 2012 ....
For the year ended 31 March 2012
Financial results presentation
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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.
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Group Highlights
Key Messages
Financial Results
Operational Performance
Outlook
Appendix
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FY12 Key financials
Mar 11 Mar 12
Revenue (ZARbn)
33.1 39.5
Up 19%
7.1 7.0
EBITDA (ZARbn)
Down 3%
16.12 18.50
Up 15%
Core HEPS (ZAR)
2.70
3.35
Up 24%
DPS (ZAR)
5
FY12 Group highlights
Financial
Operational
• Revenue up 19%, mainly driven by internet • EBITDA down 3%, impact of expensing growth initiatives • Core HEPS grew 15% to ZAR18.50 • 24% increase in DPS proposed
• Internet: +59% revenue growth, services being developed • Pay-TV: sub growth +14% YoY, competition increasing • Print: effective cost controls, improved results
Strategic
• Building out e-commerce businesses and DTT • Ongoing focus on organic growth • Development spend up 84% to ZAR2.8bn (US$380m) • Acquisitions amounted to $260m
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Group Highlights
Key Issues
Financial Results
Operational Performance
Outlook
Appendix
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FY12 Key issues
Maintained revenue growth
Increased focus on e-commerce
Acceleration in development spend
Satisfactory pay-TV growth
1
2
3
4
Fewer M&A opportunities 5
Group diversity reduces risk 6
8
Maintained revenue growth momentum
25,305
34,505 37,251
45,103
56,522
-
10,000
20,000
30,000
40,000
50,000
60,000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Revenue (ZARm)*
* Based on economic interest, i.e. assuming all equity accounted investments are proportionately consolidated
9
Increased focus on e-commerce
2 389 2 761
3 684
5 725
-
1 000
2 000
3 000
4 000
5 000
6 000
Mar 09 Mar 10 Mar 11 Mar 12
Naspers e-commerce revenue (ZARm)
e-commerce as % of total retail (2011A)
8%
6% 5%
4% 4% 3% 3% 3%
2% 2% 2% 2% 1% 1% 1%
0%
3%
6%
9%
UK
US
A
Cze
ch
Pol
and
W E
U
Bra
zil
Eur
ozon
e
Japa
n
EE
U
Rus
sia
Hun
gary
Ukr
aine
Rom
ania
Turk
ey
Mex
ico
Source: Euromonitor, BofA- ML Global Research, select GEM markets in orange
10
5.1% 5.7% 5.5%
5.0% 4.5% 3.6%
4.4% 4.0% 4.6%
6.1%
7.1%
0%
1%
2%
3%
4%
5%
6%
7%
Mar 07 Sep 07 Mar 08 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12
Acceleration in group development spend
Development spend as % of revenue
15,187 20,363 21,311
25,712
31,180 1,093
1,211 1,240
1,535
2,823
-
9,000
18,000
27,000
36,000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Other operating costs Development costs
Development spend vs. Other operating costs (ZARm)
11
-
100
200
300
400
500
Mar 08 Sept 08 Mar 09 Sept 09 Mar 10 Sept 10 Mar 11 Sept 11 Mar 12
Pay-TV subscriber growth satisfactory
Net additions (‘000)
Average = 349
12
Fewer M&A opportunities
Total cost Total cost Percentage
Company Date FCm US$m acquired
Travel Boutique Mar 12 INR1,000 20 50%
Markafoni Jul/Dec 11 PLN239 95 80%
Slando Jul 11 US$29 29 100%
Fashion Days Dec 11 PLN185 54 90%
7 Pixel Apr 11 EUR23 35 85%
Other 27
TOTAL 260
214
517
754
260
-
250
500
750
1 000
Mar 09 Mar 10 Mar 11 Mar 12
Total acquisition spend (US$m)
Acquisitions FY12
13
Diversification reduce risks
Subscription (37%)
IVAS & games (20%)
Advertising (14%)
Print media (9%)
e-commerce (9%)
Technology (4%)
Other (7%)
Pay TV (43%)Internet (34%)Print Media (21%)Technology (2%)
FY12 Revenue by Business* FY12 Revenue by Geography*
* Based on economic interest, i.e. assuming all investments are proportionately consolidated
South Africa (46%)Asia (22%)Latam (11%)Rest of Africa (11%)Europe (9%)Other (1%)
FY12 Revenue by Type*
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Group Highlights
Key Issues
Financial Results
Operational Performance
Outlook
Appendix
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Summary consolidated income statement
Mar 11 ZARm
Mar 12 ZARm
Revenue 33,085 39,487
EBITDA 7,149 6,960
EBITDA margin 22% 18%
Trading profit 5,838 5,485
Net finance costs (1,018) (697)
Share of equity accounted results 3,290 3,869
Other 1,480 (834)
Taxation (1,861) (2,059)
Net profit 5,947 3,481
Core headline earnings 6,036 6,951
Core headline EPS (ZAR) 16.12 18.50
3
1
2
2
2 EBITDA and trading profit lower mainly due to 84% rise in development spend
5 Core headline earnings growth +15%
4 Current year affected by accounting movements in associates and prior year by Mail.ru roll-up into DST
Interest paid flat due to lower rate on new RCF;
BEE preference dividends and net foreign exchange impact both favourable
3
1
Revenue growth 19% YoY, some acceleration in 2H
4
5
16
Revenue growth mainly driven by internet
• Internet delivered 59% growth YoY
- Tencent & Mail.ru’s contribution +59%
- Other internet increased 57%
• Pay-TV revenues grew 15%, driven by:
- 14% increase in subscribers
- Good growth in advertising revenue
• Print buoyed by commercial print contracts
Revenue* (ZARm)
Revenue* – historic growth (ZARm)
21,025
12,092 10,758
24,093
19,192
12,071
-
5,000
10,000
15,000
20,000
25,000
Pay-TV Internet Print
Mar 11
Mar 12
25,305
34,505 37,251
45,103
56,522
5,000
15,000
25,000
35,000
45,000
55,000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Revenue* (ZARm) Mar 11 Mar 12 % Change
Economic interest 45,103 56,522 25%
* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated
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2
1
Development spend per business division
ZAR1.7bn for e-commerce
ZAR543m for DTT, mobile TV and online ZAR134m for other technologies
Development spend (ZARm) Development spend split FY12
Internet (66%)
Pay-TV (26%)
Other (8%)
1,129 1,211 1,240 1,535
2 823
0
500
1 000
1 500
2 000
2 500
3 000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Focus on organic growth
Mar 11 ZARm
Mar 12 ZARm
% Change
Internet 705 1,857 163%
Pay-TV* 607 731 20%
Other 223 235 5%
Total 1,535 2,823 84%
1
2
* Development cost for the technology business included in pay-TV
18
5,243
7,173
8,537
10,220 11,210
-
2,000
4,000
6,000
8,000
10,000
12,000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Rise in development spend = lower profit growth
• Pay-TV profit margins affected by growth initiatives:
- Roll-out of DTT services
- Additional investment in content
• Internet margin down to 20% due to:
- cost of scaling e-commerce operations
- further expansion of Allegro’s product offering
- lower Tencent margins
• Print margin benefited from effective cost management
Trading profit* (ZARm)
Trading profit* – historic growth (ZARm)
5 727
3 493
872
6,331
3,800
1,090 -
1 000
2 000
3 000
4 000
5 000
6 000
Pay-TV Internet Print
Mar 11Mar 12
Trading profit (ZARm)1 Mar 11 Mar 12 % Change
Economic interest 10,220 11,210 10%
Trading margin 23% 20%
1 Before amortisation, other gains/losses and including transponder leases
* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated
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Increased contribution from associates
* Tencent, Mail.ru Group and Abril numbers reflect their financial periods Jan-Dec 2011
Associate contribution to core headline earnings
2
1
3
Continued increase in internet usage and solid growth in core business
Online advertising and community IVAS remain key drivers of monetisation
Affected by deferred tax adjustments
Mar 11 ZARm
Mar 12 ZARm
% Change
Tencent 3,164 4,376 38%
Mail.ru 152 364 139%
Abril 250 205 -18%
Other 28 7 -75%
TOTAL 3,594 4,952 38%
1
3
2
20
Higher capex = lower free cash flow
1 Pay-TV ZAR1,187m Internet ZAR367m Print ZAR360m
2,062 2,432
4,123 3,991 3,619
-
1,000
2,000
3,000
4,000
5,000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Free cash flow (ZARm)
Mar 11 ZARm
Mar 12 ZARm
Operating cash flow 7,386 7,505
Capex (1,555) (2,034)
Finance leases (473) (477)
Tax (1,983) (1,923)
Investment income 616 547
Free cash flow 3,991 3,619
1
FCF from operations
2
2 2
Dividends received from associates
21
Balance sheet remains strong
1
2
Consequence of debt-funded acquisitions
Excludes transponder leases of ZAR2.4bn, considered to be an operating cost
Mar 12 ZARm
Net debt – offshore (US$1.2bn) (9,578)
Minus: Net cash – South Africa 4,983
Closing net debt (4,595)
Group gearing (excl. transponder leases) Interest cover
10% 11x
Group net consolidated debt
1
2
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Group Highlights
Key Issues
Financial Results
Operational Performance
Outlook
Appendix
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Internet Focus
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Internet: Tencent
Revenue mix FY12*
• Gained market share in online gaming
• Expanded open platform to enhance user activity
• Building out e-commerce
• Expanding online advertising business
• Well positioned for continued growth of mobile internet
• Profitability impacted by investment in new growth initiatives
• Key operational statistics at 31 March 2012:
- 752m active IM accounts (+12% YoY)
- 167m peak concurrent IM accounts (+22% YoY)
- 9m PCU’s for open games platform (+14% YoY)
- 82m IVAS subscriptions (+13% YoY)
• Contribution to FY12 core headline earnings ZAR4.4bn (FY11 ZAR3.2bn)
IVAS gaming (56%)
IVAS other (24%)
MVAS (12%)
Advertising & other (8%)
* Data for FY12 reflects 100% of results Jan-Dec 2011 available on www.Tencent.com; FY12 ZAR/Rmnb1.162 (1.068)
Solid growth in core businesses
RMBm* Dec 10 Dec 11 % Change
Revenue 19,646 28,496 45%
Operating profit 9,838 12,254 25%
Operating margin 50% 43%
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Internet: Mail.ru Group
Revenue mix FY12*
• Structural drivers of business remain healthy
• Mobile now a major driver of user growth
• Market leader in online gaming
• Increased interoperability + user engagement = acceleration in IVAS revenues
• Scale benefits and cost controls drove margin uplift
• Key operational statistics at 31 March 20121 - portal: 33m (+18% YoY)
- email: 27m (+17% YoY)
- SNS: Odnoklassniki 25m (+38% YoY)
- IM: Mail.ru Agent 26m (+20% YoY)
• Contribution to FY12 core headline earnings
ZAR364m (FY11 R152m)
MMO Games (28%)
Community IVAS (24%)
Display advertising (26%)
Context advertising (11%)
Other (11%)Sources: 1TNS statistics for Russia only reflecting average monthly unique users
* Data reflects 100% of Mail.ru Group’s FY12 aggregate segment performance as reported. For IFRS results with full disclosure and recon refer to www.corp.mail.ru; FY12 ZAR/US$ 7.41 (7.16)
Strong growth driven by IVAS and display advertising
US$m* Dec 10 Dec 11 % Change
Revenue 325 515 58%
EBITDA 119 283 138%
EBITDA margin 37% 55%
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Internet: e-commerce strategy
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Internet: e-commerce
e-commerce revenue by type
• Expanding into different areas of e-commerce
• Scope of services determined by market dynamics
• Change in revenue mix to impact LT margins
• Increased development spent of ZAR1.7bn (FY11 ZAR575m) impacted FY12 profits
• Cost hike due to development and marketing of new products and services
Facilitation (45%)
B2C (22%)
Lead generation (11%)
Payment platforms (7%)
Classifieds (4%)
Vertical e-tail (4%)
Other (7%)
Focus on scaling operations affects profits
ZARm Mar 11 Mar 12 % Change
Revenue 3,684 5,725 55%
Trading profit 142 (913) >-100%
Trading margin 4% -16%
119 272 268
575
1 725
-
500
1 000
1 500
2 000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
e-commerce development spend (ZARm)
28
PLNm* Mar 11 Mar 12 % Change
Revenue 859 1,312 53%
Trading profit 277 131 - 53%
Trading margin 32% 10%
- excl. development spend & acquisitions 38% 32%
Internet: Allegro Group
Revenue mix FY12
• Revenue growing in line with expectations
• International expansion ongoing – contributed 34% of revenue (14% in FY11)
• Operations now in 15 countries and 6 verticals
• Acquired Markafoni (Turkey), Fashion Days (CEE) and Slando (Russia & Ukraine)
• Increased focus on organic development:
- Payment platforms
- Classifieds in 10 markets, leader in 5
• Development cost of PLN113m (FY11 PLN52m) and acquisitions impacted profits
Facilitation (58%)
B2C (23%)
Classifieds (7%)
Lead generation (4%)
Payment Platforms (2%)
Other (6%)
Change in revenue mix driven by product expansion
* Data reflects 100% of results; FY12 ZAR/Zloty 2.44 (2.37)
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Internet: Other e-commerce
• Buscape
- Total revenue more than doubled YoY; organic growth +65% YoY
- Core comparison shopping business maintaining good growth momentum
- Profitability affected by investment in new growth initiatives
- Competition in Brazil increasing
• ibibo
- Repositioned business to focus more on e-commerce
- Good growth and early traction from Goibibo online travel platform.
- Tradus.in one of the largest online marketplaces
• OLX
- Global player in very competitive online classifieds segment
- Development spend accelerated to increase scale
- Rolling out services on mobile platforms
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Pay-TV: Positioning for the future To
go
Guinea
Gha
na
Ben
in
Mali
Burkina Faso
Ivory Coast
Nigeria
Niger
Sudan
Eritrea
Ethiopia Central African Rep. Cameroon
Equatorial Guinea Gabon Democratic
Rep. of Congo
Rwanda Burundi
Uganda Kenya
Angola
Namibia
Zambia
Tanzania
Malawi
Zimbabwe
Botswana
Mozambique
Madagascar Swaziland
Lesotho South Africa
In 48 countries across Africa
ANYTIME, ANYWHERE, ANY DEVICE
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Pay-TV: Growth dynamics
Net subscribers (‘000)
205 195
424
607 677
-
100
200
300
400
500
600
700
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
599 517
656
1 159 1 187
-
200
400
600
800
1 000
1 200
1 400
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Development spend (ZARm) Capital expenditure (ZARm)
Programming costs* (ZARm)
3,280 3,709
4,304
5,497 6,037
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
1,948 2,401 2,852 3,489 3,981
686 916
1,099 1,439
1,630
–
1,000
2,000
3,000
4,000
5,000
6,000
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
South Africa Sub-Saharan Africa* Prior year numbers adjusted to exclude production costs
DTT Mobile TV
Online
Broadcasting equipment DTT
Online
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Pay-TV: South Africa
Digital subscriber mix
25% 26%
32% 35%
43% 39%
Mar 11 Mar 12
PremiumCompactOther
-
100
200
300
400
Mar 09 Sept 09 Mar 10 Sept 10 Mar 11 Sept 11 Mar 12
SA net additions(‘000)
Average = 254
• 492,667 net additions YoY - Premium +3%, Compact +27% - Select +40%, PVR +37%
• BoxOffice - good start, 40% of PVR’s registered, now avg. >300k movie rentals p.m.
• Advertising growth 18% YoY
• Increased investment in decoder subsidies
• Regulatory challenges
Mar 11 Mar 12 % Change
Net subscribers (‘000) 3,489 3,981 14%
ZARm
ZARm
Revenue* 15,980 18,202 14%
Trading profit 5,075 5,986 18%
Trading margin 32% 33%
Solid results
* Revenue excludes intergroup revenues
33
Pay-TV: Sub-Saharan Africa
Digital subscriber mix
13% 17%
42% 42%
45% 41%
Mar 11 Mar 12
PremiumFamily & CompactOther
-
50
100
150
200
Mar 09 Sept 09 Mar 10 Sept 10 Mar 11 Sept 11 Mar 12
SSA net additions (‘000)
Average = 114
• Subscriber growth improved 2H
• 191,766 net additions YoY
- Premium +3%, Compact & Family +13%
• Margin pressure from:
- start-up of new DTT operations
- investment in content
• Launched DTT (GOtv) in Zambia, Uganda, Kenya and Nigeria
• Competition and regulations increasing
Mar 11 Mar 12 % Change
Net subscribers (‘000) 1,439 1,630 13%
US$m US$m
Revenue 703 795 13%
Trading profit 108 78 -28%
Trading margin 15% 10%
Significant investments
FY12 ZAR/US$7.41 (7.16)
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Group Highlights
Key Issues
Financial Results
Operational Performance
Outlook
Appendix
35
Outlook: Continued investment in future growth
Strategy • Focus on e-commerce
• Increase mass-market penetration of pay-TV
• Continue to invest in strong, founder-managed businesses
Financial • Revenue growth should be maintained
• Organic development spend to continue around current levels
• Expect limited FY13 earnings growth as a consequence
Operational • Pay-TV: Accelerate DTT rollout
• Internet: Drive scaling of businesses
• General: Deal with increased competition and regulation
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Group Highlights
Key Issues
Financial Results
Operational Performance
Outlook
Appendix
36
37
Summary of Pay-TV subscribers
Net subscribers* Mar 11 Mar 12 % Change
South Africa 3,488,599 3,981,266 14%
Analogue 84,690 64,380 -24%
Premium, Compact and Other 2,899,884 3,309,285 14%
Easyview 504,025 607,601 21%
Rest of Sub-Saharan Africa 1,438,681 1,630,447 13%
Premium, Compact and Other (incl. GOtv) 1,433,406 1,630,291 14%
Easyview 5,275 156 n/a
Total 4,927,280 5,611,713 14%
PVR subscribers
South Africa 480,343 656,890 37%
Rest of Sub-Saharan Africa 80,892 98,928 22%
Total 561,235 755,818 35%
*Net subscribers reflect total subscribers net of churn. Historically we referred to these as “gross subscribers” and the change in terminology was made to avoid confusion.
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Print: Media24 SA
Revenue mix FY12
• Economic environment remains challenging
• Advertising and circulation revenue up 4%
• Printing revenue up 53% YoY
• Profits boosted by
‒ Additional commercial print contracts
‒ Continued cost control
• Development of digital applications continuing
Capex trend*
Advertising (34%)
Circulation (19%)
Printing (28%)
Distribution (5%)
Books (7%)
Other (7%)
489 433
684
348 360
-
100
200
300
400
500
600
700
Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
ZARm Mar 11 Mar 12 % Change
Revenue* 6,697 7,686 15%
Trading profit 417 587 41%
Trading margin 6% 8%
Improved revenues
* Capex excluding insurance proceeds and inter-group transactions
* Revenue excludes intergroup revenues
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Print: Abril
Steady performance
• Revenue growth affected by sluggish economy • Advertising +7% YoY and circulation -3% YoY • Expanded logistics and distribution services • Margins benefited from lower input costs • Contribution to core headline earnings ZAR205m
(ZAR250m)
BRLm Dec 10 Dec 11 % Change
Revenue 3,028 3,152 4%
Operating profit 327 380 16%
Operating margin 11% 12%
*Data reflects 100% of results Jan – Dec 2011; FY12 ZAR/BRL 4.37 (4.17)
40
Technology: Irdeto
• Shipped 18.8m CA units, up 2% YoY
• Non-group sales accounted for 67% of revenue
• Added new clients particularly in Cloaked CA (software CA) and products that help pay TV operators take their services online
• Margin contraction related to:
- Continued investment in online products/services
- CA volume mainly to lower ASP customers
• Cloakware technology fundamental to software CA and online strategy
Units shipped (m)
9.4 10.6
15.1 16.0
18.0 18.8
0
5
10
15
20
Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12
Focusing on new product development
* Reflect 100% of operations before any inter-company adjustments
US$m Mar 11 Mar 12 % Change
Revenue 247 236 -4%
Trading profit 18 (2) -109%
Trading margin 7% -1%
FY12 ZAR/US$7.41 (FY11 7.16)
41
Core headline earnings
Mar 11 ZARm
Mar 12 ZARm
Headline earnings 4,213 4,874
Treasury-settled share scheme charges 488 652
Deferred tax adjustments 13 (38)
Amortisation of intangible assets 1,052 1,191
Business combination-related costs 124 110
RCF – accelerated amortisation of costs 128 -
Fair value adjustments & currency translations 18 162
Core headline earnings 6,036 6,951
1
Includes ZAR468m from Tencent and Mail.ru
1
Includes ZAR22m relating to associates 2
2
42
Associates contribution
IFRS PPA Company Other Core HEPS
ZARm results adjustments results adjustments* contribution
Tencent 3,787 - 3,787 589 4,376
Mail.ru (21) 150 129 235 364
Abril 104 136 240 (35) 205
Other (1) 6 5 1 6
TOTAL 3,869 292 4,161 790 4,952
Associates contribution to Core HEPS (ZARm)
Associates contribution FY12
4,952
292 4,161
790
3,869
IFRS results PPA adjustments Company results Other adjustments Core HEPS Contribution
* Headline and core earnings adjustments similar to Naspers methodology
43
Net finance costs
Mar 10 Mar 11 Mar 12
ZARm ZARm ZARm
Interest (paid) (883) (1,389) (1,271) Loans and overdrafts (600) (883) (877) Transponder leases (93) (144) (132) RCF costs write-off - (128) - Other (190) (234) (262)
Interest received 348 401 400 Loans and call accounts 314 308 360 Other 34 93 40
Other finance costs, net 114 (30) 174 FX translation adjustments (154) (247) (135) BEE preference dividends 268 217 309
Total finance costs (421) (1,018) (697)
Debt include:
• US$700m 7-year bond issued Jul10:
- 6.375% coupon
• 5-year US$2bn RCF arranged Mar11:
- US$1.1bn drawn at March 2012
- US$800m fixed at 4.3% all-in for 5 years
- floating interest of ~2.1% on rest (1.75% + 3month LIBOR + other costs)
• Cost of transponder leases (depreciation and finance costs) included in trading profit
• SSA: new 15-yr lease effective Dec09
- Total cost ~US$44m p.a.
• SA: new agreement effective Sep12
– Current cost ~ US$24m p.a.
– To increase to US$42m p.a.
1
1
1
2
2
44
Taxation analysis
Mar 11 ZARm
Mar 12 ZARm
Profit before tax 7,808 5,539
Add back:
Development spend 1,535 2,823
Equity results (including impairments) (3,267) (3,775)
Other gains and losses (623) 2,188
FX gains and losses 248 135
BEE preference dividends (217) (309)
Adjusted profit before tax 5,484 6,601
Adjusted tax charge (1,861) (2,059)
Effective rate 34% 31%
45
Capital expenditure
Mar 11 ZARm
Mar 12 ZARm
Land, buildings & plant 327 412
Transmission equipment 506 626
Computer, software & network equipment 663 901
Other (including vehicles, furniture) 59 95
Capital expenditure 1,555 2,034
Capex/Revenue 5% 5%
46
Minimal impact of currency movements
Revenue growth YoY * Trading Profit growth YoY *
ZAR fluctuation impacts translation of offshore earnings
Average Closing rate
Currency (ZAR = 1FC) Mar 11 Mar 12 % change Mar 13E Mar 11 Mar 12 % change
US dollar 7.16 7.41 -4 8.21 6.77 7.67 -13
Euro 9.49 10.22 -8 11.16 9.60 10.23 -6
Chinese Yuan/Renminbi 1.07 1.16 -8 1.28 1.04 1.22 -12
Brazilian Real 4.17 4.37 -5 4.56 4.16 4.20 -5
Polish Zloty 2.36 2.44 -3 2.49 2.38 2.46 -3
Nigerian Naira 0.04 0.05 -25 0.05 0.04 0.05 -25
56,522 54,896
20,000
30,000
40,000
50,000
60,000
Reported Constant Currency
+25% +22%
11,210 10,791
3,000
6,000
9,000
12,000
Reported Constant Currency
+10% +6%
* Based on economic interest, i.e. assuming equity accounted investments are proportionately consolidated
Core Earnings growth YoY
6 951 6 573
-
2,000
4,000
6,000
8,000
Reported Constant Currency
+15% +9%
47
FX - Hedging to manage risk
• Hedging strategy:
- 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 liability to a maximum of 24 months
• Annualised net foreign input costs:
- Pay-TV: US$309m (programming rights and leases)
- Print: EUR27m and US$20m (paper and ink)
• Almost all FEC’s qualify for hedge accounting
US$ Forward Exchange Cover
EUR Forward Exchange Cover
US$m US$ rate
FY13 458 7.77
FY14 327 8.22
EURm EUR rate
FY13 27 10.56
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Consolidated income statement – US$
Mar 11 ZARm
Mar 12 ZARm
Mar 11 US$m
Mar 12 US$m
Revenue 33,085 39,487 4,624 5,329
Operating profit 4,056 3,201 567 432
Finance costs (1,019) (697) (142) (94)
Share of equity accounted results 3,290 3,869 460 522
Acquisitions and disposals 42 (134) 6 (18)
Dilution profits 1,461 (606) 204 (82)
Impairment of equity accounted investments (23) (94) (3) (13)
Profit before taxation 7,808 5,539 1,091 748
Taxation (1,861) (2,059) (260) (278)
Net profit 5,947 3,480 831 470
Attributable to:
Naspers 5,260 2,893 735 390
Minorities 687 587 96 79
*FY12 ZAR/US$7.41 (FY11 7.16)
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Meloy Horn
Office: +27 11 289 3320
Mobile: +27 82 7727 123
E-mail: [email protected]
Website: www.naspers.com
Investor Relations
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