Wrap Text
Summarised consolidated financial results for the year ended 31 March 2017
Naspers Limited
Incorporated in the Republic of South Africa
(Registration number 1925/001431/06)
(Naspers)
JSE share code: NPN ISIN: ZAE000015889
LSE share code: NPSN ISIN: US 6315121003
Summarised consolidated financial results
for the year ended 31 March 2017
COMMENTARY
Naspers produced positive results for the year
to 31 March 2017. Tencent delivered strong
earnings, while the group continued to scale its
ecommerce businesses. Video entertainment has
become both more mature and more competitive.
Against this backdrop, core headline earnings
grew 41% to US$1.8bn.
The internet segment expanded, particularly
in classifieds, payments and travel, which all
achieved solid traction. These businesses were
further strengthened during the year by additional
investments to scale and grow, including mobile
app-only classifieds platform, letgo, acquiring
Citrus Pay in the Indian online-payments market
and merging the group's ibibo platform with
MakeMyTrip in India. On the back of contributions
from Tencent and ecommerce, group revenue
(measured on an economic-interest basis) grew
19% to US$14.6bn (or 29% in local currency,
adjusted for acquisitions and disposals).
The video-entertainment segment continued
to face the effects of weakened African currencies
and higher content costs. This translated into a
marginal decrease in year-on-year revenue and
significant pressure on profitability, although
the business recorded strong subscriber growth,
particularly outside South Africa.
Foreign currencies affect the group's segments
to varying degrees. In video entertainment, weak
currencies have a large impact on earnings
(given pricing in local currencies, but a high
US dollar cost base). In the internet segment,
the impact is lessened by the geographic
dispersion of the businesses and a cost base
generally denominated in local currencies.
Where relevant in this report, we have adjusted
amounts and percentages for the effects of
foreign currency, as well as acquisitions and
disposals. These adjustments (pro forma
financial information) are quoted in brackets
after the equivalent metrics reported under
International Financial Reporting Standards
(IFRS). A reconciliation of pro forma financial
information to the equivalent IFRS metrics
is provided in note 16 of these summarised
consolidated financial results.
The following financial commentary and
segmental reviews are prepared on an
economic-interest basis (including consolidated
subsidiaries and a proportionate consolidation
of associated companies and joint ventures),
unless otherwise stated.
FINANCIAL REVIEW
Consolidated revenue (thus excluding
equity-accounted companies) increased 3%
(13%), mainly due to strong performances by the
ecommerce businesses which grew 11% (32%).
Significant disposals during the year, notably
the Allegro business in Poland and the Czech
ecommerce units, Netretail and Heureka, reduced
revenues. In addition, the merger of the online
travel business, ibibo, with MakeMyTrip in January
2017 resulted in the group's travel investment no
longer being consolidated. From the 2018 financial
year, the group will equity-account for its share
of the results of MakeMyTrip, given its 40%
shareholding in the merged business.
Consolidated development spend was up 22%
(13%) to US$861m as letgo, Showmax and
the travel business accelerated their growth.
Total aggregate development spend on these
businesses was US$427m. Excluding the
stepped-up investment in these businesses,
development spend decreased by 16% as several
ecommerce businesses, including classifieds
and the business-to-consumer (B2C) operations,
improved profitability.
Group trading profit, measured on an economic-
interest basis, rose 22% (37%) to US$2.7bn. This
was driven by strong growth from Tencent as well
as contracting trading losses in the B2C business,
offset by higher development spend and an
operating loss from the sub-Saharan African
video-entertainment business.
IFRS operating losses were higher at US$360m,
mainly due to the effects of currency weakness
and higher content costs in the video-
entertainment segment.
The group's share of equity-accounted results
increased 42% year on year to US$1.8bn.
This includes once-off gains of US$381m and
impairment losses of US$268m recognised by
associates and joint ventures. The contribution
to core headline earnings by associates and joint
ventures was up 50% to US$2.4bn after adjusting
for these non-recurring items.
Net interest expense on borrowings was down
17% to US$142m, due to lower utilisation of credit
facilities and, to a lesser extent, cash retained
from the US$3.2bn Allegro disposal. Consequently,
the group was in a net cash position of US$1.1bn
at year-end.
The combination of higher development spend
and lower profit contribution from the video-
entertainment business resulted in consolidated
free cash outflow of US$125m. These effects were
partially offset by higher dividend income from
Tencent and improved working capital.
The company's external auditor has not reviewed
or reported on forecasts included in the
summarised consolidated financial results.
SEGMENTAL REVIEW
Internet
Solid growth was evidenced in this segment with
revenues up 29% (41%) year on year to US$10.6bn.
Fuelled in particular by excellent results from
Tencent and increased profitability of the more
mature ecommerce assets, overall internet segment
trading profits increased 52% (65%) to US$2.5bn.
At year-end, this segment contributed 73% of total
Naspers revenue measured on an economic-interest
basis, an increase from 67% last year.
Ecommerce
Ecommerce growth saw revenues 11% (27%)
higher at US$2.9bn. Trading losses increased 5%
year on year, as the group invested to scale letgo
and continued expanding the hotels segment
of the online travel business. The group now
has 21 profitable businesses in ecommerce,
excluding those disposed of during the year,
delivering US$699m in revenues and US$229m
in trading profits.
Classifieds performed well, growing revenues by
96% (64%) to US$426m. In Russia, Avito generated
firm revenues in the first full year of consolidating
its results. Growth also accelerated in European
markets, led by Poland, Ukraine, Romania and
Portugal due to increased levels of monetisation.
In May 2016 the US operations of letgo were
merged with Wallapop, and shareholders invested
a collective US$100m in the combined business.
Following lively user engagement after the merger,
an additional US$175m was raised to solidify
letgo's competitive position. Results to date are
encouraging and investment in the US market and
elsewhere will continue for several years.
Solid progress was made in other classifieds
markets as OLX invested to improve its mobile
product offerings and drive synergies across
product and technology platforms. Excluding
letgo, trading losses declined significantly.
In B2C, revenue growth was fuelled by eMAG,
which improved revenue by 35% and increased
market share in Romania, Bulgaria and Hungary.
In Romania, which accounted for the bulk of
eMAG's revenues, the growing private-label
business delivered firm margins and the company
improved cash flow from working capital
management.
The group's Indian etail associate, Flipkart,
remains a large opportunity, with market
estimates expecting the online retail market in
India to reach US$50bn by 2020. Competition has
intensified in the past year, with Amazon gaining
market share in the early part of the year. Flipkart
has maintained its leadership position, with recent
market share trends suggesting gains.
Two further significant transactions took place
with respect to the group's equity-accounted etail
investments. In March 2017 the group signed an
agreement for the sale of its interest in Souq, in
the Middle East, to Amazon. In April 2017, post
year-end, the group agreed to invest US$73m in
Takealot, subject to regulatory approval.
In January 2017 the group concluded the merger
of its online travel businesses ibibo and redBus
with Nasdaq-listed MakeMyTrip, creating India's
leading online travel business. Post merger,
Naspers holds a 40% fully diluted stake in
MakeMyTrip. To fund further expansion, the group
invested an additional US$132m in MakeMyTrip
after year-end.
In Poland the disposals of Allegro and Ceneo
concluded in January 2017, generating net
proceeds of US$3.2bn. These businesses
contributed revenue of US$327m and a trading
profit of US$137m to the results for the year.
The payments business generated lively revenue
growth of 33% (32%) year on year. Six markets
served by PayU recorded operational growth
of over 50%. Total payments volume exceeded
US$16bn, up 36% on last year, with over 400m
transactions processed over the period.
The acquisition of Citrus Pay in India
consolidated PayU's position and will allow it to
build a franchise in ecommerce while growing
vertical market positions in the airline and
telecommunications industries.
After year-end, PayU invested EUR110m in
Kreditech - a leading technology group for digital
consumer credit. This transaction combines
PayU's strong international footprint with
Kreditech's technology to bring innovative credit
services to underserved markets.
As previously reported, Naspers Ventures - tasked
with identifying new growth opportunities for
the group - made a number of investments in
educational technology companies.
Movile's subsidiary, iFood, the Latin American
online food-delivery business operating mainly
in Brazil, made excellent progress with order-
number growth accelerating 164% year on year.
iFood revenues grew 229% and trading profit
156%. The group's online food-delivery portfolio
was strengthened after year-end by a EUR387m
investment in Delivery Hero, the largest online
food-delivery company by orders globally.
Tencent
For the year ended December 2016 Tencent's
revenues were RMB151.9bn, up 48% year on year.
Non-GAAP profit attributable to shareholders
(Tencent's measure of normalised performance)
grew 40% to RMB45.4bn.
QQ and Weixin reinforced their positions as the
ubiquitous social platforms for users in China to
communicate, socialise, and enjoy online content
and services. Weixin continued to develop as a
'super app', with monthly active users on Weixin
and WeChat up 28% to 889m. Tencent launched
several successful self-developed and licensed
games and expanded its position as a leading
global game company by investing in companies
such as Supercell and Paradox. The popularity of
its digital-content platforms and number of paying
users grew well.
Looking ahead, Tencent will focus on delivering
superior experiences to its users and creating
business opportunities for its ecosystem partners
by implementing its 'connection' strategy.
Heavy investment in innovative, cutting-edge
technologies (including cloud services and artificial
intelligence) and partnerships will continue as
Tencent positions itself for long-term growth.
Extensive information on Tencent's results is
available at www.tencent.com/en-us/ir.
Mail.ru
Mail.ru's revenue for the year to December 2016
was up 15% to RUB42.8bn, including the results
of newly acquired Pixonic and Delivery Club
(the online food-ordering business in Russia).
Key revenue drivers were online games and
advertising. Warface remains Mail.ru's largest
game, followed by War Robots from Pixonic.
Mail.ru recorded strong advertising-revenue
growth in mobile, especially from VKontakte and
in-feed native formats.
Group aggregate segment EBITDA (Mail.ru's
measure of normalised performance) was down
1% to RUB17.9bn, mainly due to a non-recurring
value-added tax charge.
Towards the end of its financial year, Mail.ru made
a number of acquisitions aimed at expanding its
ecosystems and leveraging its user base, most
notably Pixonic and Delivery Club. These have the
potential to sustain long-term revenue growth and
profitability.
More information on Mail.ru's results is available
at https://corp.mail.ru/en/investors/.
Video entertainment
Last year tough economic conditions led to
significant churn in subscribers, but 2017 saw a
return to modest growth. A value strategy was
successful at expanding the business over the
long term. This focused on bouquet restructuring
and reduction of non-performing content, holding
subscription prices steady in key markets, better
customer focus and retention, reducing set-top
box prices and rightsizing operations. These
initiatives resulted in net direct-to-home (DTH)
subscriber growth of 935 000 homes, compared
to 38 000 last year. A total of 597 000 digital
terrestrial television (DTT) subscribers were
added to the base, bringing the combined closing
base (DTT and DTH) to 11.9m households at
year-end. The DTT business continued to grow,
despite analogue switchoffs not being mandated
as anticipated. Development of the DTT content
offering and improved retention capabilities
contributed to solid growth over the year.
As a result, this business will not be included in
development spend in future.
At a macroeconomic level, muted economic
growth and continued currency weakness,
contributed to video-entertainment revenues
declining marginally year on year to US$3.4bn
(but increasing 7% after excluding the impact of
foreign exchange). Content costs lifted due to
increased competition, and the business is
responding by removing or renegotiating non-
essential content. Trading profit of US$287m
declined 53% (32%) year on year due to the impact
of currency weakness in the main operating
markets, where customers are billed in local
currency but the bulk of the cost base is US dollar
denominated. Given the high fixed-cost base,
continued subscriber growth is key to improving
profitability.
Liquidity in Nigeria, Angola and Mozambique remained
constrained with limited availability of foreign currency.
At year-end, we had cash balances of US$289m in these
countries that are exposed to currency depreciation. We
were able to extract US$133m up to 31 March 2017.
Subsequent to year-end, we have extracted a
further US$113m up to 31 May 2017.
The subscription video-on-demand (SVOD)
service, Showmax, completed its first full year
of operations, culminating in its launch in
Poland in February 2017. Showmax is now fully
localised in South Africa, Kenya and Poland and
available in over 60 other countries. Consolidated
development spend for the video entertainment
segment was US$102m (2016: US$85m) - up 20%
year on year. Increased investment in Showmax
was offset by scaling of the DTT platform.
Regulations in the video-entertainment business
are under constant review and we continue to
engage with regulators across the continent.
Media
Although substantial growth of 14% (16%) was
recorded in the ecommerce and digital segments of
our media businesses, overall revenues decreased
by 3% (1%) to US$588m. Besides ongoing challenges
from structural changes in the print media
industry, the segment also continues to face tough
macroeconomic conditions due to a weak South
African rand. Consumer spending was subdued
and, as a consequence, subscription and advertising
income. The focus remains on restructuring the
mature print businesses, migrating audiences to
digital platforms and scaling ecommerce interests
while containing costs.
Prospects
During the 2018 financial year the group will
keep scaling its ecommerce businesses to drive
profitability and cash generation. The focus
for the more mature businesses - media and
video entertainment - will be on managing
macroeconomic and sectoral headwinds through
ongoing cost containment. Competition from
global platforms across the markets where
Naspers operates is increasing and the group
will respond through continued innovation and
transformation of existing businesses, while
investing to fuel the next wave of growth.
DIVIDEND NUMBER 88
(all figures in South African cents)
The board recommends that the annual gross
dividend be increased by 12% to 580 cents
(previously 520 cents) per listed N ordinary share,
and 116 cents (previously 104 cents) per unlisted
A ordinary share. If confirmed by shareholders at
the annual general meeting on Friday 25 August
2017, dividends will be payable to shareholders
recorded in the books on Friday 15 September 2017
and paid on Monday 18 September 2017. The last
date to trade cum dividend will be on Tuesday
12 September 2017 (shares trade ex dividend from
Wednesday 13 September 2017). Share certificates
may not be dematerialised or rematerialised
between Wednesday 13 September 2017 and
Friday 15 September 2017, both dates inclusive.
The dividend will be declared from income
reserves. It will be subject to the dividend tax rate
of 20% (previously 15%), yielding a net dividend
of 464 cents per listed N ordinary share and 93
cents per unlisted A ordinary share to those
shareholders not exempt from paying dividend tax.
Dividend tax will be 116 cents per listed N ordinary
share and 23 cents per unlisted A ordinary share.
The issued ordinary share capital as at 23 June
2017 was 438 265 253 N ordinary shares and 907
128 A ordinary shares. The company's income tax
reference number is 9550138714.
DIRECTORATE
Emilie Choi was appointed as an independent
non-executive director from 21 April 2017.
Her experience includes consumer internet, media,
software-as-a-service (SaaS) as well as mergers
and acquisitions. She is vice president and head
of corporate development at LinkedIn and holds
an MBA from the University of Pennsylvania and a
BA in economics from Johns Hopkins University.
PREPARATION OF THE SUMMARISED
CONSOLIDATED FINANCIAL RESULTS
The preparation of the summarised consolidated
financial results was supervised by the group's
financial director, Basil Sgourdos CA(SA). These
results were made public on 23 June 2017.
On behalf of the board
Koos Bekker Bob van Dijk
Chair Chief executive
Cape Town
23 June 2017
Summarised consolidated income statement
for the year ended 31 March
2017 2016 %
Notes US$'m US$'m change
Revenue 6 098 5 930 3
Cost of providing services and sale of goods (3 574) (3 392)
Selling, general and administration expenses (2 827) (2 423)
Other (losses)/gains - net 7 (57) (292)
Operating loss (360) (177) (>100)
Interest received 5 70 40
Interest paid 5 (278) (292)
Other finance (costs)/income - net 5 (259) (100)
Share of equity-accounted results 6 1 829 1 289
Impairment of equity-accounted investments - (55)
Dilution (losses)/gains on equity-accounted investments (119) 104
Gains on acquisitions and disposals 2 169 452
Profit before taxation 7 3 052 1 261 142
Taxation (244) (260)
Profit for the year 2 808 1 001 181
Attributable to:
Equity holders of the group 2 921 994
Non-controlling interest (113) 7
2 808 1 001
Core headline earnings for the year (US$'m) 4 1 752 1 246 41
Core headline earnings per N ordinary share (US cents) 406 298 36
Fully diluted core headline earnings per N ordinary share
(US cents) 399 292 37
Headline earnings for the year (US$'m) 4 772 701 10
Headline earnings per N ordinary share (US cents) 179 168 7
Fully diluted headline earnings per N ordinary share
(US cents) 173 162 7
Earnings per N ordinary share (US cents) 677 238 185
Fully diluted earnings per N ordinary share (US cents) 670 232 189
Net number of shares issued ('000)
- At year-end 431 540 431 085
- Weighted average for the year 431 207 417 575
- Fully diluted weighted average 432 684 419 208
Summarised consolidated statement of comprehensive income
for the year ended 31 March
2017 2016
US$'m US$'m
Profit for the year 2 808 1 001
Total other comprehensive income, net of tax, for the year(1) 1 545 374
Translation of foreign operations(2) 326 (309)
Net fair value (losses)/gains (1) 11
Cash flow hedges (85) 42
Share of other comprehensive income and reserves of equity-accounted
investments 1 293 633
Tax on other comprehensive income 12 (3)
Total comprehensive income for the year 4 353 1 375
Attributable to:
Equity holders of the group 4 492 1 406
Non-controlling interest (139) (31)
4 353 1 375
Notes
(1) These components of other comprehensive income may subsequently be reclassified to profit or loss except for gains
of US$292m (2016: US$387m) included in the "Share of other comprehensive income and reserves of equity-accounted
investments".
(2) The movement on the foreign currency translation reserve for the year relates primarily to the effects of foreign
exchange rate fluctuations related to the group's net investments in its foreign operations.
Summarised consolidated statement of changes in equity
for the year ended 31 March
2017 2016
US$'m US$'m
Balance at the beginning of the year 10 654 6 903
Changes in share capital and premium
Movement in treasury shares (77) (68)
Share capital and premium issued 56 2 300
Changes in reserves
Total comprehensive income for the year 4 492 1 406
Movement in share-based compensation reserve (376) 120
Movement in existing control business combination reserve 47 9
Direct retained earnings and other movements 720 -
Dividends paid to Naspers shareholders (158) (161)
Changes in non-controlling interest
Total comprehensive income for the year (139) (31)
Dividends paid to non-controlling shareholders (116) (125)
Movement in non-controlling interest in reserves 258 301
Balance at the end of the year 15 361 10 654
Comprising:
Share capital and premium 4 944 4 965
Retained earnings 9 496 6 110
Share-based compensation reserve 1 147 1 231
Existing control business combination reserve (137) (184)
Hedging reserve (30) 35
Valuation reserve 1 387 573
Foreign currency translation reserve (1 849) (2 476)
Non-controlling interest 403 400
Total 15 361 10 654
Summarised consolidated statement of financial position
as at 31 March
2017 2016
Notes US$'m US$'m
Assets
Non-current assets 16 291 13 486
Property, plant and equipment 1 638 1 443
Goodwill 8 2 442 2 818
Other intangible assets 1 104 1 190
Investments in associates 9 10 784 7 625
Investments in joint ventures 9 79 218
Other investments and loans 9 82 57
Other receivables 32 20
Derivative financial instruments 2 -
Deferred taxation 128 115
Current assets 5 639 3 237
Inventory 154 194
Programme and film rights 193 160
Trade receivables 420 393
Other receivables and loans 456 491
Derivative financial instruments 6 59
Cash and cash equivalents 4 007 1 714
5 236 3 011
Assets classified as held for sale 11 403 226
Total assets 21 930 16 723
Equity and liabilities
Share capital and reserves 14 958 10 254
Share capital and premium 4 944 4 965
Other reserves 518 (821)
Retained earnings 9 496 6 110
Non-controlling shareholders' interest 403 400
Total equity 15 361 10 654
Non-current liabilities 3 641 4 023
Capitalised finance leases 1 142 771
Liabilities - interest bearing 2 198 2 922
- non-interest bearing 9 8
Other non-current liabilities - 3
Post-employment medical liability 14 13
Derivative financial instruments 13 20
Deferred taxation 265 286
Current liabilities 2 928 2 046
Current portion of long-term debt 915 227
Trade payables 487 437
Accrued expenses and other current liabilities 1 333 1 253
Derivative financial instruments 119 31
Bank overdrafts and call loans 4 1
2 858 1 949
Liabilities classified as held for sale 11 70 97
Total equity and liabilities 21 930 16 723
Net asset value per N ordinary share (US cents) 3 466 2 379
Summarised consolidated statement of cash flows
for the year ended 31 March
2017 2016
US$'m US$'m
Cash flows from operating activities
Cash generated from operating activities 294 454
Interest income received 63 46
Dividends received from investments and equity-accounted companies 193 146
Interest costs paid (257) (246)
Taxation paid (333) (322)
Net cash (utilised in)/generated from operating activities (40) 78
Cash flows from investing activities
Acquisitions and disposals of tangible and intangible assets (173) (228)
Acquisitions of subsidiaries, associates and joint ventures (397) (1 426)
Disposals of subsidiaries, associates and joint ventures 3 383 289
Cash movement in other investments and loans 1 (19)
Net cash generated from/(utilised in) investing activities 2 814 (1 384)
Cash flows from financing activities
Proceeds from issue of share capital - 2 470
Proceeds from long- and short-term loans raised 584 2 000
Repayments of long- and short-term loans (602) (2 270)
Outflow from share-based compensation transactions (36) (13)
Dividends paid by the holding company and its subsidiaries (281) (254)
Other movements resulting from financing activities (76) (41)
Net cash (utilised in)/generated from financing activities (411) 1 892
Net movement in cash and cash equivalents 2 363 586
Foreign exchange translation adjustments on cash and cash equivalents (50) (73)
Cash and cash equivalents at the beginning of the year 1 713 1 200
Cash and cash equivalents classified as held for sale (23) -
Cash and cash equivalents at the end of the year 4 003 1 713
Segmental review
for the year ended 31 March
Revenue
2017 2016 %
US$'m US$'m change
Internet 10 621 8 237 29
- Ecommerce 2 929 2 647 11
- Tencent 7 506 5 417 39
- Mail.ru 186 173 8
Video entertainment 3 401 3 413 -
Media 588 608 (3)
Corporate services 2 1 100
Intersegmental (50) (35) (43)
Economic interest 14 562 12 224 19
Less: Equity-accounted investments (8 464) (6 294) (34)
Consolidated 6 098 5 930 3
EBITDA(1)
2017 2016 %
US$'m US$'m change
Internet 2 706 1 845 47
- Ecommerce (682) (648) (5)
- Tencent 3 312 2 415 37
- Mail.ru 76 78 (3)
Video entertainment 520 799 (35)
Media 40 52 (23)
Corporate services (14) (12) (17)
Economic interest 3 252 2 684 21
Less: Equity-accounted investments (3 180) (2 261) (41)
Consolidated 72 423 (83)
Trading profit
2017 2016 %
US$'m US$'m change
Internet 2 454 1 619 52
- Ecommerce (731) (693) (5)
- Tencent 3 125 2 246 39
- Mail.ru 60 66 (9)
Video entertainment 287 610 (53)
Media 19 29 (34)
Corporate services (14) (12) (17)
Economic interest 2 746 2 246 22
Less: Equity-accounted investments (2 960) (2 067) (43)
Consolidated (214) 179 (220)
Note
(1) EBITDA refers to earnings before interest, taxation, depreciation and amortisation.
Reconciliation of trading (loss)/profit to operating loss
for the year ended 31 March
2017 2016
US$'m US$'m
Trading (loss)/profit (214) 179
Finance cost on transponder leases 46 33
Amortisation of other intangible assets (99) (68)
Other (losses)/gains - net (57) (292)
Retention option expense (1) (2)
Share-based incentives settled in treasury shares (35) (27)
Operating loss (360) (177)
Note
For a reconciliation of operating loss to profit before taxation, refer to the summarised consolidated income statement.
Notes to the summarised consolidated financial results
for the year ended 31 March
1. General information
Naspers Limited (Naspers) is a global internet and entertainment group and one of the largest technology investors in
the world. Founded in 1915, we now operate in more than 120 countries and markets with long-term growth potential.
Naspers builds leading companies that empower people and enrich communities. It runs some of the world's leading
platforms in internet, video entertainment and media.
2. Basis of presentation and accounting policies
The summarised consolidated financial results for the year ended 31 March 2017 are prepared in accordance
with the JSE Limited's (JSE) Listings Requirements (the Listings Requirements) relevant to summarised financial
statements and the provisions of the Companies Act No 71 of 2008. The Listings Requirements require provisional
reports to be prepared in accordance 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 Financial Pronouncements as issued by the Financial Reporting Standards
Council, and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting. The
summarised consolidated financial results do not include all the disclosures required for complete annual financial
statements prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB).
The accounting policies applied in the preparation of the consolidated annual financial statements, from which
the summarised consolidated financial results were derived, are consistent with those applied in the previous
consolidated annual financial statements.
The group has adopted all new and amended accounting pronouncements issued by the IASB that are effective for
financial years commencing 1 April 2016. None of the new or amended accounting pronouncements that are effective
for the financial year commencing 1 April 2016 had a material impact on the group.
The group's reportable segments reflect the components of the group that are regularly reviewed by the chief
executive officer and other senior executives who make strategic decisions. The group proportionately consolidates
its share of the results of its associates and joint ventures in its reportable segments.
Trading profit excludes amortisation of intangible assets (other than software), equity-settled share-based payment
expenses relating to transactions to be settled through the issuance of treasury shares, 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.
3. Independent audit
The summarised consolidated financial results have been audited by the company's auditor, PricewaterhouseCoopers
Inc. (PwC). The individual auditor assigned to perform the audit is Brendan Deegan. PwC's unqualified audit reports
on the consolidated annual financial statements and summarised consolidated financial results are available
for inspection at the registered office of the company. The auditor's report does not necessarily cover all the
information contained in the summarised financial results. 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 consolidated annual financial statements from the registered office of the company. These documents will be
available from the company's registered office from 23 June 2017. The consolidated annual financial statements,
together with the integrated annual report, will be available on www.naspers.com on or about 21 July 2017.
4. Headline and core headline earnings
31 March
2017 2016
US$'m US$'m
Net profit attributable to shareholders 2 921 994
Adjusted for:
- insurance proceeds - (1)
- impairment of property, plant and equipment and other assets 26 43
- impairment of goodwill and other intangible assets 28 155
- loss on sale of assets 1 3
- loss on remeasurement of disposal groups classified as held for sale to fair
value less costs of disposal 2 88
- gains on acquisitions and disposals of investments (2 219) (110)
- remeasurement of previously held interest - (348)
- dilution losses/(gains) on equity-accounted investments 119 (104)
- remeasurements included in equity-accounted earnings (102) (125)
- impairment of equity-accounted investments - 55
776 650
Total tax effects of adjustments (17) 54
Total adjustment for non-controlling interest 13 (3)
Headline earnings 772 701
Adjusted for:
- equity-settled share-based payment expenses 296 218
- recognition of deferred tax assets - (1)
- amortisation of other intangible assets 467 230
- fair-value adjustments and currency translation differences 172 90
- retention option expense 1 2
- business combination related losses 44 6
Core headline earnings 1 752 1 246
The diluted earnings, headline earnings and core headline earnings per share figures presented on the face of
the income statement include a decrease of US$24m (2016: US$20m) relating to the future dilutive impact of
potential ordinary shares issued by equity-accounted investees.
5. Interest (paid)/received
31 March
2017 2016
US$'m US$'m
Interest received 70 40
- loans and bank accounts 56 37
- other 14 3
Interest paid (278) (292)
- loans and overdrafts (198) (207)
- transponder leases (46) (33)
- other (34) (52)
Other finance (cost)/income - net (259) (100)
- net foreign exchange differences and fair-value adjustments on derivatives (259) (102)
- preference dividends received - 2
6. Equity-accounted results
The group's equity-accounted investments contributed to the summarised consolidated financial results as follows:
31 March
2017 2016
US$'m US$'m
Share of equity-accounted results 1 829 1 289
- sale of assets 3 -
- disposal of investments (381) (251)
- impairment of investments 268 180
Contribution to headline earnings 1 719 1 218
- amortisation of other intangible assets 404 174
- equity-settled share-based payment expenses 268 191
- fair-value adjustments and currency translation differences - 6
Contribution to core headline earnings 2 391 1 589
Tencent 2 535 1 797
Mail.ru 52 45
Other (196) (253)
The group applies an appropriate lag period in reporting the results of equity-accounted investments where the year-
ends of investees are not coterminous with that of Naspers Limited.
7. Profit before taxation
In addition to the items already detailed, profit before taxation has been determined after taking into account,
inter alia, the following:
31 March
2017 2016
US$'m US$'m
Depreciation of property, plant and equipment 214 186
Amortisation 128 94
- other intangible assets 99 67
- software 29 27
Net realisable value adjustments on inventory, net of reversals(1) 51 78
Other (losses)/gains - net (57) (292)
- loss on sale of assets (1) (3)
- impairment of goodwill and other intangible assets (30) (155)
- impairment of property, plant and equipment and other assets (26) (43)
- remeasurement of disposal groups classified as held for sale to fair value
less costs of disposal (2) (88)
- dividends received on investments 1 -
- insurance proceeds - 1
- fair-value adjustments on financial instruments 1 (4)
Gains on acquisitions and disposals 2 169 452
- profit on sale of investments 1 990 110
- gains recognised on loss of control transactions 228 -
- remeasurement of contingent consideration 1 2
- acquisition-related costs (50) (8)
- remeasurement of previously held interest - 348
Note
(1)Net realisable value writedowns relate primarily to set-top box subsidies in the video entertainment segment.
8. Goodwill
Goodwill is subject to an annual impairment assessment. Movements in the group's goodwill for the year are detailed
below:
31 March
2017 2016
US$'m US$'m
Goodwill
- cost 3 175 2 170
- accumulated impairment (357) (279)
Opening balance 2 818 1 891
- foreign currency translation effects 210 (26)
- acquisitions of subsidiaries and businesses 244 1 260
- disposals of subsidiaries and businesses (786) (7)
- transferred to assets classified as held for sale (37) (155)
- impairment (5) (145)
- remeasurement to fair value less costs of disposal (2) -
Closing balance 2 442 2 818
- cost 2 790 3 175
- accumulated impairment (348) (357)
9. Investments and loans
The following relates to the group's investments and loans as at the end of the reporting period:
31 March
2017 2016
US$'m US$'m
Investments and loans 10 945 7 900
- listed investments 10 127 6 977
- unlisted investments and loans 818 923
10. Commitments and contingent liabilities
Commitments relate to amounts for which the group has contracted, but that have not yet been recognised as
obligations in the statement of financial position.
31 March
2017 2016
US$'m US$'m
Commitments 2 464 3 254
- capital expenditure 13 16
- programme and film rights 2 015 2 245
- network and other service commitments 158 176
- transponder leases - 573
- operating lease commitments 163 207
- set-top box commitments 115 37
The group operates a number of businesses in jurisdictions where taxes are payable on certain transactions or
payments. The group continues to seek relevant advice and works with its advisers to identify and quantify such tax
exposures. Our current assessment of possible withholding and other tax exposures, including interest and potential
penalties, amounts to approximately US$256.7m (2016: US$216.8m). No provision has been made as at 31 March 2017
and 2016 for these possible exposures.
11. Disposal groups classified as held for sale
Following the announcement of the unbundling of the majority of the group's interest in its subsidiary Novus Holdings
Limited (Novus), operating in the print industry in South Africa, the group classified the assets and liabilities of
Novus as held for sale at 31 March 2017. The unbundling is subject to finalisation in accordance with regulatory
requirements. Novus forms part of the media segment.
In March 2017 the group signed an agreement to dispose of its joint venture Souq Group Limited (Souq) and
accordingly classified the investment as held for sale. Souq forms part of the ecommerce segment. Refer to note 15
regarding the conclusion of the group's disposal of Souq after year-end.
The assets and liabilities of various other smaller units were also classified as held for sale during the year.
The disposal of these units is subject to regulatory and other approvals.
The group concluded the disposals of its subsidiaries, Heureka and Netretail, following the receipt of regulatory
approval during May and July 2016, respectively. These businesses were classified as held for sale as at 31 March 2016.
The group also concluded the disposal of its subsidiary INET BFA in November 2016. This business was classified as
held for sale as at 30 September 2016. Refer to note 12 for further details.
The carrying values of the assets and liabilities of all disposal groups classified as held for sale as at 31 March 2017
are detailed below:
31 March
2017 2016
US$'m US$'m
Assets 403 226
Property, plant and equipment 176 28
Goodwill and other intangible assets 35 124
Investment in joint venture 102 4
Deferred taxation assets 7 1
Inventory 26 38
Trade and other receivables 34 19
Cash and cash equivalents 23 12
Liabilities 70 97
Deferred taxation liabilities 19 9
Long-term liabilities 6 2
Bank overdrafts - 12
Trade payables 18 39
Accrued expenses and other current liabilities 27 35
The group recognised a loss of US$1.6m (2016: US$87.7m) as part of "Other (losses)/gains - net" in the income
statement on remeasuring the net assets of businesses classified as held for sale to their fair value less costs
of disposal during the year. The fair value of the businesses was determined based on third-party sales prices.
This represents a level 3 fair-value measurement.
12. Business combinations, other acquisitions and disposals
In November 2016, the group acquired a 100% interest in Citrus Pay, a leading Indian payments technology player,
to expand the payments business' Indian footprint. Citrus Pay forms part of the Indian operations of PayU,
the group's global online-payment service provider. The transaction was accounted for as a business combination.
The total purchase consideration amounted to US$112m. In addition, an employment-linked prepayment of US$18m
was recognised as a transaction separate from the business combination. This amount will be expensed in the
income statement over the service period. The purchase price allocation: net debt US$1m; net working capital
US$2m; intangible assets US$15m; deferred tax liability US$5m and the balance of US$105m to goodwill. The main
classes of intangible assets recognised in the business combination were trademarks, customer bases and
technology.
As part of its strategy to consolidate the growing US online classifieds market, the US operations of Wallapop S.L.
(Wallapop) were absorbed into the group's letgo business during July 2016. As consideration for the contribution of
Wallapop's business and cash of US$45m, Wallapop was issued with a 45% interest in a newly formed entity in the
US, with the group holding the remaining 55% interest. The transaction was accounted for as a business combination.
The total deemed purchase consideration amounted to US$126m, representing the fair value of the equity interest
issued to Wallapop. Given the early-stage nature of the business model, the transaction gave rise to the recognition of
goodwill of US$126m. A non-controlling interest of US$45m was recognised following the business combination.
The main factor contributing to the goodwill recognised in these acquisitions is the acquiree's market presence.
The goodwill that arose is not expected to be deductible for income tax purposes. Total acquisition-related costs
of US$2m were recorded in "Gains on acquisitions and disposals" in the income statement regarding the above
acquisitions.
Since the acquisition dates of the above transactions, revenue of US$8m and net losses of US$182m have been
included in the income statement relating to the acquired businesses. Had the revenue and net results of the acquired
businesses been included from 1 April 2016, group revenue and net profit would have amounted to US$6.11bn and
US$2.80bn respectively.
The following relates to the group's investments in its equity-accounted investees:
The group made its first investment targeting the education technology market by investing US$13m (23.6% fully
diluted interest) in Brainly (May 2016), a social learning network. The group also invested US$70m (10.6% fully diluted
interest) in Udemy (June and October 2016), an online education marketplace with over 7m students enrolled, and
US$22m (19.2% fully diluted interest) in Codecademy (June 2016), a leading global platform focused on online coding
education. The group accounts for these interests as investments in associates.
In January 2017 the group merged its Indian online travel business, ibibo, with Nasdaq-listed MakeMyTrip Limited,
in exchange for a 40% fully diluted interest in MakeMyTrip Limited. A gain on disposal of US$228m was recognised
in "Gains on acquisitions and disposals" in the income statement following the transaction. The group accounts for
its interest as an investment in an associate.
The following relates to significant disposals by the group during the reporting period:
In May 2016 the group disposed of its Czech online comparison-shopping platform, Heureka, for a cash consideration
of US$67m, following the receipt of regulatory approval. A gain on disposal of US$61m was recognised in "Gains on
acquisitions and disposals" in the income statement following the transaction.
During July 2016 the group disposed of its Czech online retail and ecommerce platform Netretail for a cash
consideration of US$102m. A loss on disposal of US$28m has been recognised in "Gains on acquisitions and
disposals" in the income statement.
During January 2017, following the receipt of regulatory approval, the group concluded the disposal of Allegro pl and
Ceneo.pl, the leading online marketplace and price comparison businesses in Poland for net proceeds of US$3.21bn.
A gain on disposal of US$1.94bn was recognised in "Gains on acquisitions and disposals" in the income statement
following the transaction.
Investments acquired and funding rounds participated in, were funded through the utilisation of existing credit
facilities and proceeds received from disposals during the reporting period.
13. Financial instruments
The fair values of the group's financial instruments that are measured at fair value at each reporting period are
categorised as follows:
Fair-value measurements at
31 March 2017 using:
Quoted prices
in active
markets for Significant
identical other Significant
assets observable unobservable
or liabilities inputs inputs
(level 1) (level 2) (level 3)
US$'m US$'m US$'m
Assets
Available-for-sale investments 11 2 -
Foreward exchange contracts - 2 -
Currency devaluation features - - 6
Liabilities
Foreward exchange contracts - 106 -
Shareholders' liabilities - - 18
Earn-out obligations - - 24
Interest rate swaps - 8 -
Fair-value measurements at
31 March 2016 using:
Quoted prices
in active
markets for Significant
identical other Significant
assets observable unobservable
or liabilities inputs inputs
(level 1) (level 2) (level 3)
US$'m US$'m US$'m
Assets
Available-for-sale investments 12 - -
Forward exchange contracts - 48 -
Currency devaluation features - - 11
Liabilities
Forward exchange contracts - 17 -
Shareholders' liabilities - - 13
Earn-out obligations - - 22
Interest rate swaps - 21 -
There have been no transfers between levels 1 or 2 during the reporting period, nor were there any significant
changes to the valuation techniques and inputs used in measuring fair value.
Currency devaluation features relate to clauses in content acquisition agreements that provide the group with
protection against significant currency devaluations. The fair value of currency devaluation features is measured
through the use of discounted cash flow techniques.
The fair value of shareholders' liabilities is determined using a discounted cash flow model. Business-specific
adjusted discount rates are applied to estimated future cash flows.
For earn-out obligations, current forecasts of the extent to which management believes performance criteria will
be met, discount rates reflecting the time value of money and contractually specified earn-out payments are used.
Changes in these assumptions could affect the reported fair value of these financial instruments. The fair value of
level 2 financial instruments is determined with the use of exchange rates quoted in active markets and interest rate
extracts from observable yield curves.
Financial instruments for which fair value is disclosed:
Carrying Fair
value value
Financial liabilities US$'m US$'m
31 March 2017
Capitalised finance leases(1) 1 211 1 199
Publicly traded bonds 2 900 3 041
31 March 2016
Capitalised finance leases 836 865
Publicly traded bonds 2 900 3 029
Note
(1) Includes financial liabilities classified as held for sale.
The fair values of the capitalised finance leases have been determined through discounted cash flow analysis.
The fair values of the publicly traded bonds have been determined with reference to the listed prices of the
instruments as at the end of the reporting period.
14. Related party transactions and balances
The group entered into various related party transactions in the ordinary course of business. There have been no
significant changes in related party transactions and balances since the previous reporting period.
15. Events after the reporting period
In April 2017 the group signed an agreement to acquire a controlling stake in its associate Takealot Online
(RF) Proprietary Limited (Takealot) for approximately R960m (US$73m). Following the investment, the group will
consolidate Takealot as a subsidiary and will hold a fully diluted interest of 53.6%. The transaction is subject to
regulatory approval.
The group invested US$71m for an additional interest in its associate Flipkart Limited (Flipkart) in April 2017.
The additional interest was acquired from existing shareholders of Flipkart. Following the investment, the group holds
a 16% interest in Flipkart on a fully diluted basis.
The group invested an additional US$132m in its associate MakeMyTrip Limited (MakeMyTrip), during May 2017, as
part of an equity funding round. Following the investment, the group holds a 40% interest in MakeMyTrip on a fully
diluted basis.
In May 2017 the group invested EUR387m (approximately US$434m) for a 10% fully diluted interest in Delivery Hero
GmbH, an online food-ordering and delivery marketplace business operating in over 40 countries globally.
During May 2017 the group committed to an investment of EUR110m (approximately US$120m) in Kreditech Holding
SSL GmbH (Kreditech), a provider of consumer lending and financial services. The investment is a combination of
subscriptions for new shares and purchases of shares from existing shareholders in an aggregate amount of EUR90m
and convertible loans of EUR20m to be advanced in future. The investment is part of the group's credit services strategy,
which will continue to establish it as a leading fintech provider in high-growth markets. Following the completion of
the investment (excluding the convertible loans), the group will hold a 37.6% interest in Kreditech.
The group concluded the disposal of its investment in Souq Group Limited in May 2017. The proceeds on the disposal
amounted to US$173m.
In June 2017 the group invested INR3.9bn (approximately US$60m) in Bundl Technologies Private Limited (Swiggy),
the operator of a first-party food delivery marketplace in India. Following the investment, the group holds a 14.8%
interest in Swiggy on a fully diluted basis.
16. Pro forma financial information
The group has presented certain revenue and trading profit metrics in local currency, excluding the effects of
changes in the composition of the group (the pro forma financial information) in the following tables. The pro
forma financial information is the responsibility of the board of directors (the board) of Naspers Limited and is
presented for illustrative purposes. Information presented on a pro forma basis has been extracted from the group's
management accounts with the quality of which the board is satisfied.
Shareholders are advised that, due to the nature of the pro forma financial information and the fact that it has been
extracted from the group's management accounts, it may not fairly present the group's financial position, changes in
equity, results of operations or cash flows.
The pro forma financial information has been prepared to illustrate the impact of changes in foreign exchange
rates and changes in the composition of the group on its results for the period ended 31 March 2017. The following
methodology was applied in calculating the pro forma financial information:
1. Foreign exchange/constant currency adjustments have been calculated by adjusting the current period's
results to the prior period's average foreign exchange rates, determined as the average of the monthly exchange
rates for that period. The local currency financial information quoted is calculated as the constant currency
results, arrived at using the methodology outlined above, compared to the prior period's actual IFRS results.
The relevant average exchange rates (relative to the US dollar) used for the group's most significant functional
currencies, were South African rand (2017: 0.0713; 2016: 0.0721); Polish zloty (2017: 0.2516; 2016: 0.2604); Russian
rouble (2017: 0.0159; 2016: 0.0156); Chinese yuan renminbi (2017: 0.1483; 2016: 0.1572); Indian rupee (2017: 0.0149;
2016: 0.0152); Brazilian real (2017: 0.3061; 2016: 0.2753); and Nigerian naira (2017: 0.0035; 2016: 0.0050).
2. Adjustments made for changes in the composition of the group relate to acquisitions and disposals of
subsidiaries and equity-accounted investments, as well as to changes in the group's shareholding in its equity-
accounted investments. The following significant changes in the composition of the group during the respective
reporting periods have been adjusted for in arriving at the pro forma financial information:
Basis of Reportable Acquisition/
Transaction accounting segment Disposal
Dilution of the group's interest in Tencent Associate Internet Disposal
Dilution of the group's interest in Mail.ru and disposal
by Mail.ru of Headhunter Associate Internet Disposal
Dilution of the group's interest in Souq Joint venture Ecommerce Disposal
Acquisition of the group's interest in letgo Subsidiary Ecommerce Acquisition
Acquisition of the group's interest in Avito Subsidiary Ecommerce Acquisition
Acquisition of the group's interest in Citrus Pay Subsidiary Ecommerce Acquisition
Disposal of ibibo to MakeMyTrip Subsidiary Ecommerce Disposal
Disposal of Allegro and Ceneo Subsidiary Ecommerce Disposal
Disposal of Netretail Subsidiary Ecommerce Disposal
Disposal of Heureka Subsidiary Ecommerce Disposal
Disposal of Korbitec Subsidiary Ecommerce Disposal
The net adjustment made for all acquisitions and disposals that took place during the year ended 31 March 2017
amounted to a negative adjustment of US$309m on revenue and a negative adjustment of US$45m on trading profit.
An assurance report issued in respect of the pro forma financial information by the group's external auditor, is
available at the registered office of the company.
The adjustments to the amounts, reported in terms of IFRS, that have been made in arriving at the pro forma financial
information are presented in the table below:
Year ended 31 March
2016 2017 2017 2017 2017 2017 2017 2017
A B C D E F(2) G(3) H(4)
Group
Group composi-
composi- tion
tion acquisi- Foreign Local
disposal tion currency Local currency
adjust- adjust- adjust- currency growth IFRS
IFRS ment ment ment growth IFRS % %
US$'m US$'m US$'m US$'m US$'m US$'m change change
Revenue(1)
Internet 8 237 (457) 157 (502) 3 186 10 621 41 29
- Ecommerce 2 647 (418) 151 (51) 600 2 929 27 11
- Tencent 5 417 (28) - (454) 2 571 7 506 48 39
- Mail.ru 173 (11) 6 3 15 186 9 8
Video entertainment 3 413 (2) - (245) 235 3 401 7 -
Media 608 (7) - (8) (5) 588 (1) (3)
Corporate services 1 - - - 1 2 100 100
Intersegmental (35) - - (1) (14) (50)
Economic interest 12 224 (466) 157 (756) 3 403 14 562 29 19
Trading profit(1)
Internet 1 619 (2) (43) (167) 1 047 2 454 65 52
- Ecommerce (693) 16 (42) 22 (34) (731) (5) (5)
- Tencent 2 246 (12) - (189) 1 080 3 125 48 39
- Mail.ru 66 6 (1) - 1 60 2 (9)
Video entertainment 610 - - (125) (198) 287 (32) (53)
Media 29 - - - (10) 19 (34) (34)
Corporate services (12) - - 1 (3) (14) (25) (17)
Economic interest 2 246 (2) (43) (291) 836 2 746 37 22
Other metrics
reported(1)
Development
spend(5)
- economic interest 961 - 51 (1) 73 1 084 8 13
- consolidated 708 - 54 8 91 861 13 22
Consolidated
revenue 5 930 (395) 138 (295) 720 6 098 13 3
Consolidated
ecommerce revenue 1 966 (389) 138 (41) 499 2 173 32 11
Classifieds revenue 217 (19) 114 (13) 127 426 64 96
Avito revenue 54 - 114 7 29 204 54 278
Payments revenue 140 - 8 (7) 45 186 32 33
Core headline earnings, calculated in local currency terms, amounted to US$2.01bn.
Notes
(1) All figures are presented on an economic interest basis unless otherwise indicated.
(2) A + B + C + D + E.
(3) [E/(A+B)] x 100.
(4) [(F/A)-1)] x 100.
(5) Development spend is not an IFRS measure and accordingly does not have a corresponding IFRS equivalent and
therefore has been excluded from the assurance report issued by the group's external auditor.
Independent auditor's report
on the summary consolidated financial statements
TO THE SHAREHOLDERS OF NASPERS LIMITED
Opinion
The summary consolidated financial statements of Naspers Limited, contained in the accompanying provisional report,
which comprise the summary consolidated statement of financial position as at 31 March 2017, the summary consolidated
statements of comprehensive income, changes in equity and cash flows for the year then ended, and related notes, are
derived from the audited consolidated financial statements of Naspers Limited for the year ended 31 March 2017.
In our opinion, the accompanying summary consolidated financial statements are consistent, in all material respects,
with the audited consolidated financial statements, in accordance with the requirements of the JSE Limited Listings
Requirements for provisional reports, as set out in note 2 to the summary consolidated financial statements, and the
requirements of the Companies Act of South Africa as applicable to summary financial statements.
Summary consolidated financial statements
The summary consolidated financial statements do not contain all the disclosures required by International Financial
Reporting Standards and the requirements of the Companies Act of South Africa as applicable to annual financial
statements. Reading the summary consolidated financial statements and the auditor's report thereon, therefore, is not a
substitute for reading the audited consolidated financial statements and the auditor's report thereon.
The audited consolidated financial statements and our report thereon
We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated
23 June 2017. That report also includes communication of key audit matters. Key audit matters are those matters that, in
our professional judgement, were of most significance in our audit of the consolidated financial statements of the current
period.
Director's responsibility for the summary consolidated financial statements
The directors are responsible for the preparation of the summary consolidated financial statements in accordance with
the requirements of the JSE Limited Listings Requirements for provisional reports, set out in note 2 to the summary
consolidated financial statements, and the requirements of the Companies Act of South Africa as applicable to summary
financial statements.
Auditor's responsibility
Our responsibility is to express an opinion on whether the summary consolidated financial statements are consistent, in
all material respects, with the audited consolidated financial statements based on our procedures, which were conducted
in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial
Statements
PricewaterhouseCoopers Inc.
Director: Brendan Deegan
Registered Auditor
Cape Town
23 June 2017
Administration and corporate information
Naspers Limited
Incorporated in the Republic of South Africa
(Registration number 1925/001431/06)
(Naspers)
JSE share code: NPN ISIN: ZAE000015889
LSE share code: NPSNISIN: US 6315121003
Directors
J P Bekker (chair), B van Dijk (chief executive), E Choi, H J du Toit, C L Enenstein, D G Eriksson, R C C Jafta,
F L N Letele, G Liu, D Meyer, R Oliveira de Lima, S J Z Pacak, T M F Phaswana, V Sgourdos, M R Sorour, J D T Stofberg,
B J van der Ross
Company secretary
G Kisbey-Green
Registered office
40 Heerengracht, Cape Town 8001, South Africa
(PO Box 2271, Cape Town 8000, South Africa)
NASPERS LIMITED
+27 (0)21 406 2121
40 Heerengracht
Cape Town 8001
www.naspers.com
Transfer secretaries
Link Market Services South Africa Proprietary Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein 2001, South Africa
(PO Box 4844, Johannesburg 2000, South Africa)
Sponsor
Investec Bank Limited
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.
Important information
This 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.
Date: 23/06/2017 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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