Naspers Limited
(Registration number: 1925/001431/06)
(”Naspers”)
Share code: NPN
ISIN: ZAE000015889
LSE ADS code: NPSN
IS...
Commentary
Naspers now earns the majority of its revenues, including associates, offshore instead of in South Africa, and ...
Our price comparison businesses are growing ahead of market and are looking to deepen their relationship with both
buyers ...
IFRS 13 Fair Value Measurement
IFRS 13 aims to improve consistency and reduce complexity by providing a precise definition...
Revenue
Six months ended
30 September
2013
Segmental
review
Year ended
31 March
2012
(Restated)
Reviewed
R’m
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...
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30 September
2013
Reconciliation of trading profit
to operating profit
Trading profit
Finance cost on tr...
Six months ended
30 September
2013
Condensed consolidated
statement of comprehensive income
Reviewed
R’m
Year ended
31 ...
Six months ended
30 September
2013
Condensed consolidated statement
of financial position
Reviewed
R’m
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31 Ma...
Six months ended
30 September
2013
Condensed consolidated
statement of cash flows
Reviewed
R’m
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31 March
201...
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30 September
2013
Supplementary
information
Depreciation of property, plant and equipment
Amortisation
–...
Six months ended
30 September
2013
Supplementary
information (continued)
Reviewed
R’m
Year ended
31 March
2012
(Restat...
Six months ended
30 September 2012
Impact of the
application for IFRS 11
Income statement
Revenue
Cost of providing servi...
Year ended
31 March 2013
Impact of the
application for IFRS 11 (continued)
Income statement
Revenue
Cost of providing ser...
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30 September 2012
Impact of the
application for IFRS 11 (continued)
Previously
reported
R’m
Change in
...
Year ended
31 March 2013
Impact of the
application for IFRS 11 (continued)
Statement of financial position
Assets
Non-cur...
Business combinations
In June 2013 the group acquired an effective 80% interest in redBus, an Indian online ticketing plat...
Financial instruments
The information below analyses financial assets and financial liabilities, which are carried at fair...
Naspers Limited
(Registration Number: 1925/001431/06)
(“Naspers”)
Share code: NPN
ISIN: ZAE000015889
LSE ADS code: NPSN
IS...
www.naspers.com
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Naspers Limited HY 2014 results

Naspers Limited HY 2014 results
Published on: Mar 3, 2016
Published in: Investor Relations      
Source: www.slideshare.net


Transcripts - Naspers Limited HY 2014 results

  • 1. Naspers Limited (Registration number: 1925/001431/06) (”Naspers”) Share code: NPN ISIN: ZAE000015889 LSE ADS code: NPSN ISIN: US 6315121003 Interim report The reviewed results of the Naspers group for the six months to 30 September 2013
  • 2. Commentary Naspers now earns the majority of its revenues, including associates, offshore instead of in South Africa, and from the internet businesses instead of pay television. Over the past six months, the group achieved 28% top-line growth as we expanded operations. Core headline earnings per share grew by 16%. We caution, though, that over the next six months an acceleration of investment into growth areas will lower earnings. We are building ecommerce platforms, in particular online classifieds. In addition, we are rolling out digital terrestrial television (DTT) across many cities in Africa. The pace of investment in these opportunities will accelerate sharply in the second half of the current financial year. We expect development spend to exceed R7bn for the full financial year to March 2014, compared to R4,3bn last year. As this investment is largely made through the income statement, it will have a dampening effect on both earnings and cash flows in the second half of the current financial year and, cumulatively, for the year as a whole. FINANCIAL REVIEW Consolidated revenues grew 28% to R28,8bn, driven to a large extent by our internet businesses and boosted by a depreciating rand. Expanding our ecommerce and DTT operations as outlined above has resulted in development spend accelerating by 87% compared to the same period last year (R3bn vs R1,6bn). As a consequence, our consolidated trading profits were down 15% compared to last year. Net interest on borrowings has increased to R507m (2012: R277m), mainly due to a depreciation of the rand, as well as increased borrowings. Both Tencent and Mail.ru reported good growth and contributed R4,4bn and R405m, respectively, to core headline earnings. Our share of equity-accounted results includes gains of R1,3bn flowing from Mail.ru’s sale of shares in Facebook and Qiwi. This has been excluded from core headline earnings. An impairment charge of R1,1bn has been recognised in other gains/losses and relates mainly to some fashion businesses in our ecommerce segment, including FashionDays and Markafoni. We impaired some goodwill and other intangibles. A theoretical dilution loss of US$84m on our equity-accounted investments was booked, mainly stemming from Tencent buying back its own shares. As a net result of these activities, core headline earnings grew 16% to R12,48 per N ordinary share. Free cash flow for the period was R787m. Consolidated balance sheet gearing stands at a healthy 20%, excluding transponder leases and non-interest bearing liabilities. Any forecasts in this interim report have not been reviewed or reported on by the company’s external auditor. SEGMENTAL REVIEW This segmental review reflects consolidated subsidiaries, plus a proportional consolidation of associated companies and joint ventures. Internet In the aggregate, revenues across all our internet platforms grew 76% to R24,9bn. The step-up in development spend in this segment resulted in slower trading profit growth of 24% to R3,9bn. Tencent: Performed well, despite a more competitive environment. The core businesses made progress in advertising, mobile and ecommerce initiatives. Monthly active instant-messaging accounts were around 816m, whilst the combined monthly active users of WeChat and Weixin increased to 272m. The launch of integrated mobile games on Weixin and Mobile QQ generated lively user interest. Given opportunities in Chinese ecommerce, Tencent is investing in regional and category expansion. Mail.ru: Investing in product development across several of its business units. Its online advertising and games businesses drove growth. The Mail.ru portal now attracts 33m unique Russian users and expanded its mobile product offering and audience. Ecommerce: This segment is growing well with revenues almost doubling to R7,9bn. We are investing aggressively in marketing, people and product. Development spend was R2,3bn with trading losses of R1,8bn. Our classifieds businesses in most markets, Brazil and India in particular, widened their leadership over competitors on key metrics. We now have 277m daily page views across various classifieds sites, a more than two fold increase year on year. Engagement with users is also growing. Over the next six months we intend to step up further. The etailing segment saw revenue growth as we broaden categories and improve our fulfilment and delivery capabilities. We responded to some lagging flash-sales fashion units by impairing some investments and are repositioning them to include in-season, full-price merchandise. 1
  • 3. Our price comparison businesses are growing ahead of market and are looking to deepen their relationship with both buyers and sellers. We have consolidated our online payment businesses under a single brand, PayU. Average daily payment value processed across our platforms grew approximately 82% since last year. Pay television This business grew revenues 18% to R17,1bn. The subscriber base increased by a net 560 000 and now totals 7,3m households in 48 countries in Africa. However, as a consequence of the development of DTT services, trading profits inched ahead only 11% to R4,5bn. Locally, M-Net launched two new local content channels, Mzansi Wethu and Mzansi Bioskop, showcasing South African content. The DStv service was boosted with several new channels, including Telemundo, ANN7, M-Net Series Showcase, M-Net Series Reality, M-Net Series Zone, kykNET en Kie and M-Net Movies Zone. We launched our next-generation high-definition PVR decoder, Explora, with an improved hard drive, expanded video-ondemand capability and a livelier user interface. Outside South Africa the expansion of the DTT service under the GOtv brand continues and we now operate in eight countries. The DTT subscriber base grew to 547 000 paying households. Print media This industry continues to experience difficult conditions globally. Overall our print businesses saw flat revenues, but most remain profitable due to cost reductions. We wrote down our investment in Abril, the Brazilian magazine publisher, by R750m. Directorate On 16 October 2013 Messrs Craig Enenstein, Don Eriksson, Roberto Oliveira de Lima and Yuanhe Ma were appointed independent non-executive directors of Naspers, and Cobus Stofberg was appointed a non-executive director. All of them previously served on the board of Naspers’s subsidiary MIH Holdings (Pty) Limited. On the same date, after many years of excellent service on the board, Messrs Lourens Jonker, Neil van Heerden and Prof Hein Willemse stepped down as directors. On 21 November 2013 Mr Lambert Retief (non-executive) stepped down from the board. We wish to thank them for their profound devotion and commitment. On 22 November 2013 Mr Nolo Letele was appointed as a non-executive director. Messrs Ton Vosloo (non-executive chair) and Koos Bekker (executive director and CEO) have agreed, at the board’s request, to stay in their present positions. The abridged curricula vitae of all directors may be found on Naspers’s website www.naspers.com. Steve Pacak (executive director and CFO) will retire as CFO on 30 June 2014, but will remain on the board as a non-executive director. Basil Sgourdos, presently CFO of Naspers’s subsidiary MIH Holdings (Pty) Ltd, will succeed Steve Pacak. BASIS OF PRESENTATION AND ACCOUNTING POLICIES The interim report is prepared in accordance with the requirements of the JSE Limited Listings Requirements and the South African Companies Act No 71 of 2008. The Listings Requirements require interim reports to conform with the framework concepts, the measurement and recognition requirements of International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and must also, as a minimum, contain information required by IAS 34 Interim Financial Reporting. Except as noted below, accounting policies used for the interim results are consistent with those applied during the previous financial year. The group has adopted all the new, revised or amended accounting pronouncements as issued by the IASB, which were effective for financial years commencing on 1 April 2013. The following key new pronouncements have been adopted: IFRS 10 Consolidated Financial Statements The objective of IFRS 10 is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls other entities. The group has adopted the principles of IFRS 10 as a new accounting policy and applied these principles in the preparation of the group’s consolidated financial statements. The adoption of IFRS 10 did not result in any material change in the consolidation of the group. IFRS 11 Joint Arrangements IFRS 11 requires that the group applies equity accounting for joint ventures and eliminates the proportionate consolidation option. Previously, the group proportionately consolidated its joint ventures, which required that it included its share of assets, liabilities, income and expenses of joint ventures on a line-by-line basis in the consolidated financial statements. Under the equity method, the investments in joint ventures are initially recognised at cost and the carrying amounts are increased or decreased to recognise the group’s share of the profit or loss and movements in other comprehensive income of joint ventures after the acquisition date. The group’s share of the profit or loss of joint ventures is now recognised as a single line item in the income statement under the equity method. The new policy has been applied in accordance with the transitional provisions of IFRS 11. The change in accounting policy has been applied from 1 April 2012 with the group recognising its investment in joint ventures as the net carrying amounts of the assets and liabilities previously proportionately consolidated. This is the deemed cost of the group’s investments in its joint ventures for purposes of applying equity accounting. This change in accounting policy resulted in a change in individual asset, liability, income, expense and cash flow line items with no impact on equity or profit attributable to shareholders. 2
  • 4. IFRS 13 Fair Value Measurement IFRS 13 aims to improve consistency and reduce complexity by providing a precise definition of fair value and a single source of fair value measurement and disclosure requirements for use across IFRS. IFRS 13 was adopted and applied prospectively and it was assessed that the adoption did not result in any material impact on the financial results of the group. These interim results have been reviewed by the company’s auditor, PricewaterhouseCoopers Inc., whose unqualified report is available for inspection at the registered office of the company. The auditor’s report does not necessarily cover all information contained in this interim report. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s work, they should obtain a copy of that report, together with the accompanying financial information from the registered office of the company. Trading profit excludes amortisation of intangible assets (other than software), equity-settled share-based charges, retention option expenses and other gains/losses, but includes the finance cost on transponder leases. Core headline earnings exclude once-off and non-operating items. We believe it is a useful measure of the group’s sustainable operating performance. However, this is not a defined term under IFRS and may not be comparable with similarly titled measures reported by other companies. The preparation of the financial results was supervised by the financial director, Steve Pacak, CA(SA). These results were made public on 26 November 2013. SUBSEQUENT EVENTS No significant events have occurred between the period end and the date of this interim report. On behalf of the board Ton Vosloo Chair Koos Bekker Chief executive Cape Town 26 November 2013 3
  • 5. Revenue Six months ended 30 September 2013 Segmental review Year ended 31 March 2012 (Restated) Reviewed R’m Reviewed R’m % Change 2013 (Restated) Audited R’m Internet 24 887 14 108 76 34 587 – – – – 15 285 1 100 7 907 595 8 978 721 3 991 418 70 53 98 42 20 532 1 669 11 433 953 17 077 5 642 14 426 5 638 18 30 257 11 932 Economic interest Less: Equity-accounted investments 47 606 (18 851) 34 172 (11 767) 39 60 76 776 (26 907) Consolidated 28 755 28 49 869 Tencent Mail.ru Ecommerce Other internet Pay television Print – 22 405 EBITDA Six months ended 30 September 2013 Segmental review 2012 (Restated) Reviewed R’m Reviewed R’m Year ended 31 March % Change 2013 (Restated) Audited R’m Internet 4 748 3 661 – – – – 5 839 601 (1 620) (72) 3 986 386 (646) (65) 5 375 408 4 617 458 10 531 (63) (6 336) 8 736 (77) (4 364) 45 17 489 (138) (9 565) 4 132 4 295 (4) 7 786 Tencent Mail.ru Ecommerce Other internet Pay television Print Economic interest Corporate services Less: Equity-accounted investments Consolidated 30 46 56 >(100) (11) 16 (11) 21 Trading profit Six months ended 30 September 2013 Segmental review Reviewed R’m 2012 (Restated) Reviewed R’m 7 389 8 603 895 (1 979) (130) 8 933 1 167 Year ended 31 March % Change 2013 (Restated) Audited R’m Internet 3 879 3 130 – – – – 5 192 546 (1 779) (80) 3 590 342 (726) (76) 4 477 214 4 020 247 11 (13) 7 559 743 8 570 (64) (5 580) 7 397 (77) (3 858) 16 45 14 465 (139) (8 414) 2 926 3 462 (15) 5 912 Tencent Mail.ru Ecommerce Other internet Pay television Print Economic interest Corporate services Less: Equity-accounted investments 4 Consolidated 24 45 60 >(100) (5) 6 163 7 702 798 (2 192) (145)
  • 6. Six months ended 30 September 2013 Reconciliation of trading profit to operating profit Trading profit Finance cost on transponder leases Amortisation of intangible assets Other gains/(losses) – net Retention option expense Equity-settled share-based charge Operating profit Year ended 31 March 2012 (Restated) Reviewed R’m 2013 (Restated) Audited R’m 2 926 173 (410) (958) (74) (36) 3 462 72 (479) (378) (41) (88) 5 912 231 (996) (735) (138) (175) 1 621 2 548 Reviewed R’m 4 099 Note: For a reconciliation of Operating profit to Profit before taxation, refer to the “Consolidated income statement”. Six months ended 30 September 2013 Year ended 31 March 2012 (Restated) Reviewed R’m 2013 (Restated) Audited 28 755 (15 856) (10 320) (958) 22 405 (11 725) (7 754) (378) 49 869 (27 676) (17 359) (735) Operating profit Interest received Interest paid Other finance income/(costs) – net Share of equity-accounted results 1 621 257 (1 055) (117) 5 139 2 548 224 (703) – 3 990 4 099 443 (1 495) (258) 8 778 – excluding net gain on disposal of investments – net gain on disposal of investments 3 853 1 286 2 444 1 546 2 648 Consolidated income statement Revenue Cost of providing services and sale of goods Selling, general and administration expenses Other gains/(losses) – net Impairment of equity-accounted investments Dilution losses on equity-accounted investments Gains/(losses) on acquisitions and disposals Reviewed R’m R’m 6 130 (753) (836) 614 – (41) 23 (2 137) (96) (53) Profit before taxation Taxation 4 870 (1 447) 6 041 (1 383) 9 281 (2 533) Profit for the period 3 423 4 658 6 748 3 112 311 4 150 508 6 047 701 Attributable to: Equity holders of the group Non-controlling interest 3 423 Core headline earnings for the period (R’m) Core headline earnings per N ordinary share (cents) Fully diluted core headline earnings per N ordinary share (cents) Headline earnings for the period (R’m) Headline earnings per N ordinary share (cents) Fully diluted headline earnings per N ordinary share (cents) Earnings per N ordinary share (cents) Fully diluted earnings per N ordinary share (cents) Net number of shares issued (’000) – At period end – Weighted average for the period – Fully diluted weighted average 4 658 6 748 4 920 1 248 4 127 1 073 8 533 2 216 1 215 3 641 923 1 034 3 194 830 2 164 6 630 1 722 899 789 769 800 1 079 1 040 1 681 1 570 1 533 395 883 394 272 404 898 385 414 384 714 399 131 394 272 385 064 394 365 5
  • 7. Six months ended 30 September 2013 Condensed consolidated statement of comprehensive income Reviewed R’m Year ended 31 March 2012 (Restated) Reviewed R’m 4 658 2013 (Restated) Audited R’m Profit for the period Total other comprehensive income, net of tax, for the period* 3 423 6 748 5 313 (1 817) 1 527 Translation of foreign operations Cash flow hedges Share of associates’ and joint ventures’ other comprehensive income and reserves Tax on other comprehensive income 3 750 (34) 1 090 37 5 292 237 1 561 36 (2 925) (19) (3 946) (56) Total comprehensive income for the period 8 736 2 841 8 275 Attributable to: Equity holders of the group Non-controlling interest 8 372 364 2 324 517 7 463 812 8 736 2 841 8 275 * These components of other comprehensive income may subsequently be reclassified to profit or loss, except for R365m (2012: R228m) included in the Share of associates’ and joint ventures’ other comprehensive income and reserves. Six months ended 30 September 2013 Condensed consolidated statement of changes in equity Reviewed R’m Balance at beginning of the period Changes in share capital and premium Movement in treasury shares Share capital and premium issued Changes in reserves Total comprehensive income for the period Movement in share-based compensation reserve Movement in existing control business combination Movement in valuation reserve Direct retained earnings movements Dividends paid to Naspers shareholders Changes in non-controlling interest Total comprehensive income for the period Dividends paid to non-controlling shareholders Movement in non-controlling interest in reserves 55 853 Balance at end of period 62 488 Comprising: Share capital and premium Retained earnings Share-based compensation reserve Existing control business combination reserve Hedging reserve Valuation reserve Foreign currency translation reserve Non-controlling interest Total 6 Year ended 31 March 2012 (Restated) Reviewed R’m 49 576 2013 (Restated) Audited R’m 49 576 (245) 304 (269) 288 (1 695) 2 067 8 372 214 (52) – – (1 525) 2 324 201 (333) – – (1 292) 7 463 441 (700) 39 (98) (1 291) 364 (1 034) 237 517 (1 102) 209 812 (1 180) 419 15 120 29 310 4 576 (733) (155) 2 817 9 874 1 679 62 488 50 119 55 853 14 708 25 919 3 563 (291) (319) 2 778 2 076 1 685 15 061 27 723 4 006 (688) (175) 1 623 6 191 2 112 50 119 55 853
  • 8. Six months ended 30 September 2013 Condensed consolidated statement of financial position Reviewed R’m Year ended 31 March 2012 (Restated) Reviewed R’m 2013 (Restated) Audited R’m Assets Non-current assets 90 304 68 227 76 120 Property, plant and equipment Goodwill Other intangible assets Investments in associates Investments in joint ventures Other investments and loans Derivatives Deferred taxation 15 644 24 609 5 738 41 364 838 1 119 16 976 12 490 19 577 4 304 29 050 433 1 643 70 660 13 716 21 593 4 802 33 150 237 1 808 72 742 Current assets 30 965 22 232 27 143 Inventory Programme and film rights Trade receivables Other receivables and loans Derivatives Cash and cash equivalents 2 486 3 147 5 007 3 530 501 16 262 1 588 2 830 4 294 2 843 284 10 363 1 936 1 868 4 042 3 149 449 15 653 Assets classified as held-for-sale 30 933 32 22 202 30 27 097 46 Total assets 121 269 90 459 103 263 Equity and liabilities Share capital and reserves 60 809 48 434 53 741 Share capital and premium Other reserves Retained earnings 15 120 16 379 29 310 14 708 7 807 25 919 15 061 10 957 27 723 Non-controlling shareholders’ interest 1 679 1 685 2 112 Total equity Non-current liabilities 62 488 36 223 50 119 23 289 55 853 29 176 Capitalised finance leases Liabilities – interest-bearing – non-interest-bearing Post-retirement medical liability Derivatives Deferred taxation 6 730 27 225 463 173 336 1 296 5 355 15 455 246 146 937 1 150 5 868 20 571 276 161 972 1 328 Current liabilities 22 558 17 051 18 234 2 192 5 669 12 245 875 1 577 1 786 4 056 9 484 149 1 576 2 296 4 107 10 228 180 1 423 121 269 90 459 103 263 15 360 12 567 13 630 Current portion of long-term debt Trade payables Accrued expenses and other current liabilities Derivatives Bank overdrafts and call loans Total equity and liabilities Net asset value per N ordinary share (cents) 7
  • 9. Six months ended 30 September 2013 Condensed consolidated statement of cash flows Reviewed R’m Year ended 31 March 2012 (Restated) Reviewed R’m 2013 (Restated) Audited R’m 10 035 (6 409) Cash flow generated from operating activities Cash flow utilised in investing activities Cash flow generated from/(utilised in) financing activities 2 598 (4 210) 4 168 (2 726) 1 552 (1 483) 1 286 Net movement in cash and cash equivalents Foreign exchange translation adjustments Cash and cash equivalents at beginning of the period (60) 515 14 230 (41) 180 8 648 4 912 670 8 648 Cash and cash equivalents at end of the period 14 685 8 787 14 230 Six months ended 30 September 2013 Calculation of headline and core headline earnings Reviewed R’m Year ended 31 March 2012 (Restated) Reviewed R’m Net profit attributable to shareholders Adjusted for: – insurance proceeds – impairment of property, plant and equipment and other assets – impairment of goodwill and intangible assets – (profit)/loss on sale of property, plant and equipment and intangible assets – (gains)/losses on acquisitions and disposals of investments – step-up acquisition (gain)/loss – dilution losses on equity-accounted investments – remeasurements included in equity-accounted earnings – impairment of equity-accounted investments (1 286) 753 (1 333) – (2 278) 2 137 Total tax effects of adjustments Total adjustment for non-controlling interest 3 776 (103) (32) 3 210 (6) (10) 6 691 (29) (32) 3 641 3 194 6 630 Headline earnings Adjusted for: – equity-settled share scheme charges – recognition of deferred tax assets – special dividend income – taxation adjustment – amortisation of intangible assets – fair value adjustments and currency translation differences – retention option expense – business combination losses/(gains) Core headline earnings 8 3 112 4 150 – – 24 1 063 41 289 2013 (Restated) Audited R’m 6 047 (2) 97 588 (99) (3) 17 (111) (516) 836 4 21 41 (11) – 96 429 (49) – – 690 339 (26) – – 583 850 (195) (423) (191) 1 403 125 72 12 35 41 (39) 273 135 51 4 920 4 127 8 533
  • 10. Six months ended 30 September 2013 Supplementary information Depreciation of property, plant and equipment Amortisation – intangible assets – software Other gains/(losses) – net – profit/(loss) on sale of property, plant and equipment and intangible assets – impairment of goodwill and intangible assets – impairment of property, plant and equipment and other assets – insurance proceeds – fair value adjustment on shareholders’ liability Reviewed R’m Year ended 31 March 2012 (Restated) Reviewed R’m 2013 (Restated) Audited R’m 940 503 691 549 1 494 1 146 410 93 479 70 996 150 (958) (378) (735) 99 (1 063) 3 (289) (17) (588) (24) – 30 (54) – (38) (97) 2 (35) Interest received 257 224 443 – loans and bank accounts – other 242 15 203 21 408 35 Interest paid – loans and overdrafts – transponder leases – other (1 055) (703) (1 495) (656) (173) (226) (480) (72) (151) (1 044) (231) (220) Other finance income/(cost) – net (117) – (258) – net foreign exchange differences and fair value adjustments on derivatives – preference dividends received (165) 48 (76) 76 (383) 125 Gains/(losses) on acquisitions and disposals 614 23 (53) – profit on sale of investments – losses recognised on loss of control transactions – remeasurement of contingent consideration – acquisition-related costs – remeasurement of previously held interest – other 111 – – (13) 516 – 40 (44) 75 (37) – (11) 68 (44) 13 (73) – (17) Goodwill – cost – accumulated impairment 24 077 (2 484) 19 610 (1 873) 19 610 (1 873) Opening balance – foreign currency translation effects – acquisitions – disposals – impairment 21 593 1 988 1 701 (9) (664) 17 737 556 1 533 (8) (241) 17 737 2 103 2 423 (164) (506) Closing balance 24 609 19 577 21 593 – cost – accumulated impairment 27 873 (3 264) 21 638 (2 061) 24 077 (2 484) 9
  • 11. Six months ended 30 September 2013 Supplementary information (continued) Reviewed R’m Year ended 31 March 2012 (Restated) Reviewed R’m 2013 (Restated) Audited R’m Investments and loans 43 321 31 126 35 195 – listed investments – unlisted investments 37 417 5 904 24 481 6 645 29 157 6 038 Commitments 18 088 16 983 18 073 – capital expenditure – programme and film rights – network and other service commitments – transponder leases – operating lease commitments – set-top box commitments 837 13 491 1 244 422 1 577 517 416 13 500 1 287 372 1 010 398 1 064 13 559 1 158 399 1 333 560 Share of equity-accounted results – sale of investments – impairment of investments – gains on acquisitions and disposals 5 139 (1 286) – – 3 990 (1 546) 213 – 8 778 (2 648) 348 (8) Contribution to headline earnings – amortisation of intangible assets – equity-settled share scheme charges – business combination costs – special dividend income – taxation adjustment – fair value adjustments and currency translation differences – recognition of deferred tax assets 3 853 376 393 – – – 2 656 261 251 – – – 6 470 692 675 13 (423) (191) (72) (49) (75) (26) (61) (195) Contribution to core headline earnings 10 4 501 3 068 6 980 Tencent Mail.ru Abril Other 4 380 405 (153) (131) 2 986 250 (95) (73) 6 652 652 (69) (255)
  • 12. Six months ended 30 September 2012 Impact of the application for IFRS 11 Income statement Revenue Cost of providing services and sale of goods Selling, general and administration expenses Other gains/(losses) – net Previously reported R’m Change in accounting policy R’m Restated R’m 22 597 (11 808) (7 919) (378) (192) 83 165 – 22 405 (11 725) (7 754) (378) Operating profit Interest received Interest paid Other finance income/(costs) – net Share of equity-accounted results 2 492 218 (706) – 4 064 56 6 3 – (74) 2 548 224 (703) – 3 990 – excluding net gain on disposal of investments – net gain on disposal of investments 2 520 1 544 (76) 2 2 444 1 546 Impairment of equity-accounted investments Dilution losses on equity-accounted investments Gains/(losses) on acquisitions and disposals – (41) 25 – – (2) – (41) 23 Profit before taxation Taxation 6 052 (1 394) (11) 11 6 041 (1 383) Profit for the period 4 658 – 4 658 Statement of cash flows Cash flow generated from operating activities Cash flow utilised in investing activities Cash flow (utilised in)/generated from financing activities Net movement in cash and cash equivalents Foreign exchange translation adjustments Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 4 092 (2 590) (1 488) 76 (136) 5 4 168 (2 726) (1 483) 14 184 8 791 (55) (4) (143) (41) 180 8 648 8 989 (202) 8 787 11
  • 13. Year ended 31 March 2013 Impact of the application for IFRS 11 (continued) Income statement Revenue Cost of providing services and sale of goods Selling, general and administration expenses Other gains/(losses) – net Previously reported R’m Change in accounting policy R’m Restated R’m 50 249 (27 852) (17 751) (831) (380) 176 392 96 49 869 (27 676) (17 359) (735) Operating profit Interest received Interest paid Other finance income/(costs) – net Share of equity-accounted results 3 815 433 (1 501) (248) 9 001 284 10 6 (10) (223) 4 099 443 (1 495) (258) 8 778 – excluding net gain on disposal of investments – net gain on disposal of investments 6 359 2 642 (229) 6 6 130 2 648 Impairment of equity-accounted investments Dilution losses on equity-accounted investments Losses on acquisitions and disposals (2 057) (96) (47) (80) – (6) (2 137) (96) (53) Profit before taxation Taxation 9 300 (2 552) (19) 19 9 281 (2 533) Profit for the period 6 748 – 6 748 Statement of cash flows Cash flow generated from operating activities Cash flow utilised in investing activities Cash flow generated from financing activities 9 845 (6 213) 1 280 190 (196) 6 10 035 (6 409) 1 286 4 912 687 8 791 – (17) (143) 4 912 670 8 648 14 390 (160) 14 230 Net movement in cash and cash equivalents Foreign exchange translation adjustments Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 12
  • 14. Six months ended 30 September 2012 Impact of the application for IFRS 11 (continued) Previously reported R’m Change in accounting policy R’m Restated R’m Statement of financial position Assets Non-current assets 68 172 55 68 227 Property, plant and equipment Goodwill and other intangible assets Investments in associates and joint ventures Other investments and loans Derivatives Deferred taxation 12 574 24 027 29 070 1 768 70 663 (84) (146) 413 (125) – (3) 12 490 23 881 29 483 1 643 70 660 Current assets 22 546 (314) 22 232 Inventory Programme and film rights Trade and other receivables and loans Derivatives Cash and cash equivalents 1 592 2 830 7 245 284 10 565 (4) – (108) – (202) 1 588 2 830 7 137 284 10 363 Assets classified as held-for-sale 22 516 30 (314) – 22 202 30 Total assets 90 718 (259) 90 459 Total equity Non-current liabilities 50 119 23 312 – (23) 50 119 23 289 Long-term debt Post-retirement medical liability Derivatives Deferred taxation 21 069 148 937 1 158 (13) (2) – (8) 21 056 146 937 1 150 Current liabilities 17 287 (236) 17 051 Current portion of long-term debt Trade payables Accrued expenses and other current liabilities Derivatives Bank overdrafts and call loans 1 786 4 117 9 659 149 1 576 – (61) (175) – – 1 786 4 056 9 484 149 1 576 90 718 (259) 90 459 Total equity and liabilities 13
  • 15. Year ended 31 March 2013 Impact of the application for IFRS 11 (continued) Statement of financial position Assets Non-current assets Previously reported R’m 76 109 Change in accounting policy R’m Restated R’m 11 76 120 Property, plant and equipment Goodwill and other intangible assets Investments in associates and joint ventures Other investments and loans Derivatives Deferred taxation 13 810 26 440 33 150 1 891 72 746 (94) (45) 237 (83) – (4) 13 716 26 395 33 387 1 808 72 742 Current assets 27 427 (284) 27 143 Inventory Programme and film rights Trade and other receivables and loans Derivatives Cash and cash equivalents 1 941 1 868 7 310 449 15 813 (5) – (119) – (160) 1 936 1 868 7 191 449 15 653 Assets classified as held-for-sale 27 381 46 (284) – 27 097 46 Total assets 103 536 (273) 103 263 Total equity Non-current liabilities 55 853 29 192 – (16) 55 853 29 176 Long-term debt Post-retirement medical liability Derivatives Deferred taxation 26 720 164 972 1 336 (5) (3) – (8) 26 715 161 972 1 328 Current liabilities 18 491 (257) 18 234 Current portion of long-term debt Trade payables Accrued expenses and other current liabilities Derivatives Bank overdrafts and call loans 2 298 4 179 10 411 180 1 423 (2) (72) (183) – – 2 296 4 107 10 228 180 1 423 103 536 (273) 103 263 Total equity and liabilities 14
  • 16. Business combinations In June 2013 the group acquired an effective 80% interest in redBus, an Indian online ticketing platform. The fair value of the total purchase consideration was R1bn in cash. The purchase price allocation: property, plant and equipment R4m; intangible assets R402m; cash R29m; trade and other receivables R27m; trade and other payables R41m; deferred tax liability R120m and the balance to goodwill. During June 2013 the option to subscribe for new shares in MIH India Global Internet Limited (MIH India), held by Tencent Holdings Limited, expired. MIH India operates ecommerce platforms under the ibibo brand. In terms of IFRS 10 the group exercised control over MIH India from the date that the option expired. The group previously accounted for MIH India as a joint venture. The fair value of the total deemed purchase consideration was R321m, being the acquisition date fair value of the interest held in MIH India. A gain of R274m has been recognised as a result of remeasuring to fair value the existing interest in MIH India. The purchase price allocation: property, plant and equipment R5m; intangible assets R162m; cash R71m; trade and other receivables R64m; trade and other payables R31m; deferred tax liability R51m and the balance to goodwill. In July 2013 the group acquired an additional interest of 28,6% in Dubizzle, an online classifieds platform centred on Dubai. The group’s total interest in Dubizzle increased to 53,6% and the group now accounts for Dubizzle as a subsidiary. The fair value of the total purchase consideration was R939m, consisting of R477m in cash for the additional interest and R462m being the acquisition date fair value of the existing interest held in Dubizzle. The purchase price allocation: property, plant and equipment R2m; intangible assets R507m; cash R35m; trade and other receivables R16m; trade and other payables R37m and the balance to goodwill. A non-controlling interest of R303m was recognised at the acquisition date. A gain of R209m has been recognised as a result of remeasuring to fair value the group’s existing interest in Dubizzle before the acquisition of the additional interest. The main factor contributing to the goodwill recognised in these acquisitions is their market presence. This goodwill is not expected to be deductible for income tax purposes. The non-controlling interest was measured using the proportionate share of the identifiable net assets. The group made various smaller acquisitions with a combined cost of R193m. Total acquisition-related costs of R13m were recorded in “Gains/(losses) on acquisitions and disposals” in the income statement. Had the revenues and net results of redBus and Dubizzle been included from 1 April 2013, it would not have had a significant effect on the group’s consolidated revenue and net results. The following investments in associated companies and joint ventures were made: In June 2013 the group acquired an additional 6,1% interest in Souq Group Limited, an online retailer, marketplace and payment platform business, with operations in the UAE, Saudi Arabia, Egypt and Kuwait, for R296m in cash. The group now has a 35,8% interest in Souq Group Limited. In July 2013 the group acquired an additional 8,6% interest in Flipkart Private Limited, a leading ecommerce site in India, for R1 376m in cash. The group now has a 16,7% interest in Flipkart on a fully diluted basis. The above acquisitions were primarily funded through the utilisation of existing credit facilities. 15
  • 17. Financial instruments The information below analyses financial assets and financial liabilities, which are carried at fair value at each reporting period, by level of hierarchy as required by IFRS 7 and IFRS 13. Fair value measurements at 30 September 2013 using: Quoted prices in active markets for identical assets or liabilities (Level 1) R’m Assets Foreign exchange contracts Other derivatives Liabilities Foreign exchange contracts Shareholders’ liabilities Interest rate swaps Significant other observable inputs (Level 2) R’m Significant unobservable inputs (Level 3) R’m – – 495 22 – – – – – 22 – 392 – 796 – There have been no transfers between level one, two or three during the period, nor were there any significant changes to the valuation techniques and inputs used to determine fair values. Reconciliation of level 3 financial instrument liabilities The following table presents the changes in level 3 instruments for the period ending 30 September 2013: Shareholders’ liabilities R’m Opening balance at 1 April 2013 Issues Foreign currency translation effects Cancellations 704 73 30 (11) Closing balance at 30 September 2013 796 The fair value of level three financial instruments are determined using the discounted cash flow model. Business specific adjusted discount rates are applied to estimated future cash flows. Changes in these assumptions could affect the reported fair value of these financial instruments. The fair value of level two financial instruments are determined with the use of exchange rates quoted in an active market and interest rate extracts from observable yield curves. 16
  • 18. Naspers Limited (Registration Number: 1925/001431/06) (“Naspers”) Share code: NPN ISIN: ZAE000015889 LSE ADS code: NPSN ISIN: US 6315121003 Directors T Vosloo (chair), J P Bekker (chief executive), C L Enenstein, D G Eriksson, F-A du Plessis, R C C Jafta, F L N Letele, Y Ma, D Meyer, R Oliveira de Lima, S J Z Pacak, T M F Phaswana, J D T Stofberg, B J van der Ross, J J M van Zyl Company secretary G Kisbey-Green Registered office 40 Heerengracht, Cape Town 8001 (PO Box 2271, Cape Town 8000) Transfer secretaries Link Market Services South Africa Proprietary Limited 13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein 2001 (PO Box 4844, Johannesburg 2000) Sponsor Investec Bank Limited ADR programme The Bank of New York Mellon maintains a GlobalBuyDIRECTTM plan for Naspers Limited. For additional information, please visit The Bank of New York Mellon’s website at www.globalbuydirect.com or call Shareholder Relations at 1-888-BNY-ADRS or 1-800-345-1612 or write to: The Bank of New York Mellon, Shareholder Relations Department – GlobalBuyDIRECTTM, Church Street Station, PO Box 11258, New York, NY 10286-1258, USA. Important information The report 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 judgements 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 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. 17
  • 19. www.naspers.com

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