Integrated annual report 2023


2023

Integrated annual report

Improving everyday life for billions of people through technology

  • Chair’s review
  • Chief executive’s review
  • Chief financial officer’s review

Chair’s review

Chair’s review

In the face of uncertainty, we tried to maintain our focus and our purpose. As a consumer internet group and one of the largest technology investors, we are helping to bring the benefits of a digital world to our customers. We do this in the core segments of Food Delivery, Classifieds, Payments and Fintech, and Edtech, where we aim to build useful ecosystems.

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Koos Bekker

Chair

Chief executive’s review

Chief executive’s review

Our approach is founded on a multigenerational record of innovation, adaptation and reinvention. We understand the opportunity and importance of solving everyday problems for customers. Equally, we understand that local entrepreneurs are often best placed to do this.

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Bob van Dijk

Chief executive

Chief financial officer’s review

Chief financial officer’s review

The operating environment in the fiscal year ended 31 March 2023 remained difficult and continued to be characterised by geopolitical and macroeconomic uncertainty. Amid that uncertainty, the group leveraged its strong financial footing and remained focused on building long-term sustainable value in local marketplaces across its main segments. After years of investment and growth, these segments have scaled meaningfully, creating clear paths to profitability for each. The group is committed to achieving consolidated Ecommerce profitability in the first half of FY25 while maintaining industry-leading levels of growth. We believe this will form a strong basis to continue delivering long-term value to our shareholders.

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Basil Sgourdos

Chief financial officer

We are a global consumer internet group operating across platforms and geographies, and one of the largest technology investors in the world.

As a group, we build useful products for over two billion customers and help their communities thrive. We empower our teams to develop their skills and build meaningful careers. We create long-term value for our shareholders and our many other stakeholders.

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Proven core businesses

Our core businesses in Food Delivery, Payments and Fintech, Classifieds and Media recorded profits of US$144m in FY23, improving from US$112m in FY22

Catalysts for value creation

Accelerate Ecommerce profitability; continue open-ended share repurchase; expect strong recovery from Tencent; simplify group structure; build a repeatable process of investing towards crystallisation and return

Solid financial position

Net cash and excellent liquidity are strategic advantages in the current environment

Snapshot FY23

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A reduction in the holding company discount 17 percentage points

  • Repurchased US$2.5bn shares since September 2022
  • 16 320 371 N ordinary shares repurchased
  • NAV per share accretion1 of 4.5%

Revenue2 from continuing operations US$33.2bn

  • 20% growth on revenue from our consolidated Ecommerce business
  • Trading loss from our consolidated Ecommerce business widened by US$111m

Support to those impacted by the war in Ukraine

  • Renounced the group’s interest in VK
  • Disposed of Avito on 14 October 2022 for RUB151bn (US$2.4bn) to Kismet Capital Group
  • We allocated US$4.5m to Tvoya Opora and US$2.5m to the Kolo Charitable Foundation to procure medical supplies and equipment

Commitment to profitability

  • Commitment to deliver consolidated Ecommerce trading profit during the first half of FY25

We developed our climate targets by applying the Science-based Targets initiative’s (SBTi) guidance

  • Implemented actions towards absolute reductions of scope 1 and 2 emissions to zero (for Prosus and Naspers corporate entities). Improved GHG reporting by including scope 3
  • We developed group principles and approaches to help our subsidiaries and associates develop impactful packaging strategies

Diversity and inclusion training cascaded to all group companies

  • Employee inclusivity is core to our success as a business

Total taxes paid US$1.2bn

  • Direct taxes levied: US$820m and indirect taxes collected: US$415m
  • Naspers’ approach to tax centres around paying taxes in the countries where we operate

Naspers Labs, in collaboration with extensive networks, has placed 3 920 young people in tech and tech-enabled jobs

  • Human rights statement reinforced with all our group companies

Cost-saving initiatives

  • Reduction in corporate workforce by 30% and broader action to reduce other significant costs

>500 data scientists now part of the Naspers AI community

Strong financial performance

Revenue2 (US$’m)

Strong financial performance

Trading profit2 (US$’m)

Snapshot FY23

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1 NAV per-share accretion includes all per-share enhancing actions: the Prosus repurchase programme and Naspers purchase programme initiated in FY21, the voluntary share exchange programme executed in FY22, the Prosus share repurchase initiated in FY22 and open-ended share repurchase programme initiated in FY23.

2 Presented on an economic-interest basis from continuing operations.

Improving everyday life and our impact

 

Artificial intelligence

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India

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Returning value to shareholders

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Brazil

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South Africa

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Romania

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Segment overview

We focus on high-growth markets and business models
that we know well.

Our group includes some of the best-loved local consumer internet companies in around 100 countries, spanning the Americas to Asia, Europe to South Africa.

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  • Food Delivery
  • Classifieds2
  • Payments and Fintech
  • Edtech
  • Etail
  • Other ecommerce: Ventures
  • Social and internet platforms
  • Media24

1 Presented on an economic-interest basis from continuing operations.

2 From 1 March 2023, following the group’s decision to exit the OLX Autos business unit, its operations are classified as held for sale and those that have been closed by 31 March 2023 were presented as a discontinued operation. In May 2022, as a result of the continued conflict in the region, the group announced its decision to exit its Russian business. Accordingly, Avito was presented as a discontinued operation.

Food Delivery

Food Delivery

Our portfolio of food-delivery businesses allows customers to order their favourite food online and via apps to be conveniently delivered wherever they are.

Revenue1

US$4.2bn

up 40% (44%)

Trading loss1

US$649m

down 10% (12%)

Employees

5 210

Classifieds

Classifieds2

OLX serves hundreds of millions of people every month across five continents, helping people buy and sell cars, find housing, get jobs and buy and sell household goods.

Revenue1

US$1.6bn

up 19% (42%)

Trading loss1

US$156m

up >100% (>100%)

Employees

4 500

Payments and Fintech

Payments and Fintech

PayU is an online payment services platform that has processed more than US$78bn payment volumes globally and is a payment gateway for merchants in high-growth markets as well as large international companies.

PayU operates on four continents, in 17 high-growth markets and offers over 300 payment options.

Revenue1

US$1.1bn

up 32% (51%)

Trading loss1

US$116m

up 93% (72%)

Employees

3 447

Edtech

Edtech

We reach 90% of Fortune 100 companies across our corporate learning platforms. We also have a strong presence in K–12 (kindergarten to grade 12) in key markets.

Revenue1

US$545m

up 28% (18%)

Trading loss1

US$258m

up >100% (54%)

Employees

859

Etail

Etail

eMAG is an ecommerce leader in Central and Eastern Europe.

Revenue1

US$2.8bn

down 11% (0%)

Trading loss1

US$85m

up >100% (>100%)

Employees

10 366

Other ecommerce: Ventures

Other ecommerce: Ventures

Includes our Ventures arm that partners with entrepreneurs to build prominent technology companies, aiming to fuel the next wave of growth for the group.

Revenue1

US$618m

up 62% (66%)

Trading loss1

US$270m

down 34% (21%)

Employees

750

Social and internet platforms

Social and internet platforms

Prosus holds an investment in Tencent, China’s largest and most-used internet services platform.

Revenue1

US$22.3bn

down 12% (1%)

Trading profit1

US$5.1bn

down 19% (9%)

Media24

Media24

Media24 is one of Africa’s leading print and digital media groups with interests in digital media and services, newspapers, magazines, ecommerce, book publishing and media logistics.

Revenue1

US$217m

down 16% (0%)

Trading profit1

US$7m

down 59% (53%)

Employees

2 167

Administration and corporate information

Company secretary
L Bagwandeen
Suite 15, Third Floor
Oxford & Glenhove
116 Oxford Road
Houghton Estate
Johannesburg 2196
South Africa
cosec@naspers.com

Registered office
40 Heerengracht
Cape Town 8001
South Africa
PO Box 2271
Cape Town 8000
South Africa
Tel: +27 (0)21 406 2121
Fax: +27 (0)21 406 3753
Website: www.naspers.com

Registration number
1925/001431/06
Incorporated in the Republic of South Africa
JSE share code: NPN ISIN: ZAE000015889

Independent auditor
PricewaterhouseCoopers Inc.

Transfer secretaries
JSE Investor Services Proprietary Limited
(Registration number: 2000/007239/07)
One Exchange Square
2 Gwen Lane
Sandown, Sandton 2196
PO Box 4844
Johannesburg 2000, South Africa
Tel: +27 (0)86 140 0110/+27 (0)11 713 0800

ADR programme
Bank of New York Mellon maintains a
GlobalBuyDIRECTSM plan for Naspers Limited
For additional information, please visit
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:
Bank of New York Mellon, Shareholder Relations
Department – GlobalBuyDIRECTSM
Church Street Station
PO Box 11258
New York
NY 10286-1258
USA

Sponsor
Investec Bank Limited
(Registration number: 1969/004763/06)
PO Box 785700
Sandton 2146
South Africa
Tel: +27 (0)11 286 7326/+27 (0)11 286 9986

Attorneys
Webber Wentzel (in alliance with Linklaters)
PO Box 61771
Marshalltown 2107
South Africa

Werksmans Inc.
PO Box 1474
Cape Town 8000
South Africa

Investor relations
Eoin Ryan
InvestorRelations@naspers.com
Tel: +1 347-210-4305