Naspers Limited (JSE: NPN, LSE: NPSN): today announced
that it will change the presentation currency in its consolidated
financial statements from the South African rand (ZAR) to the
United States dollar (USD) with effect from the financial year
ended on 31 March 2016.
Over the past 100 years, the group has evolved from a
single-country newspaper business and early investor in pay
television to a video-entertainment leader and global internet and
ecommerce group with operations in over 130 countries. Today, more
than 70% of revenue measured on an economic interest basis (which
includes the group’s proportionate share of the revenue of
associates and joint ventures) is sourced from outside South
Africa.
Coupled with the evolution of the business, the group’s
shareholder base is now largely comprised of foreign investors to
whom financial reporting in ZAR is of limited relevance.
Internally, the board also bases its performance evaluation and
many investment decisions on USD financial information.
The board therefore believes that USD financial reporting
provides more relevant presentation of the group’s financial
position, funding and treasury functions, financial performance and
its cash flows.
It should be noted that the functional currencies of the group’s
underlying businesses – functional currencies referring to the
currencies of the primary economic environments in which underlying
businesses operate – remain unchanged and that foreign exchange
exposures will therefore be unaffected by the change, albeit that
the effects of such exposures will be presented in USD.
Dividends will continue to be declared in ZAR, with the relevant
exchange rate announced at the time of the dividend payment.
To assist investors in understanding the change, the group has
provided summarised, restated USD financial information for the
financial years ended 31 March 2015 and 2014 as well as for the
six-month interim periods ended 30 September 2015 and
2014. An analyst presentation with restated information is also
available on the group’s website www.naspers.com. The
summarised, restated information presented, has been prepared in
terms of International Financial Reporting Standards (IFRS) and
will form the basis of the comparative financial information
expected to be included in the consolidated annual financial
statements of the group, presented in USD, for the year ended 31
March 2016.
A change in presentation currency represents a change in an
accounting policy in terms of IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors requiring the
restatement of comparative information. In accordance with IAS 21
The Effects of Changes in Foreign Exchange Rates, the following
methodology was followed in restating historical financial
information from ZAR into USD:
- Non-USD assets and liabilities were
translated at the relevant closing exchange rate at the end of the
reporting period. Non-USD items of income and expenditure and cash
flows were translated at actual transaction date exchange
rates;
- The foreign currency translation
reserve was reset to nil as at 1 April 2006, the date on which the
group adopted IFRS, in line with IFRS 1 First-time adoption of
International Financial Reporting Standards. Share capital and
premium and other reserves, as appropriate, were translated at the
historic rates prevailing at the dates of underlying transactions;
and
- The effects of translating the group’s
financial results and financial position into USD were recognised
in the foreign currency translation reserve.
Although actual transaction date exchange rates were used to
translate previously reported ZAR earnings and cash flows into USD,
the group has provided the average exchange rates of its major
trading currencies relative to USD as an approximation for these
rates for reference in the table below. The closing exchange rates
of the group’s major trading currencies relative to USD, used when
translating the statements of financial position presented in this
release into USD, are also detailed in the table below.
31 March 2015 31 March 2014
Average rate Closing rate
Average rate Closing rate South African rand
0.0899 0.0824 0.0982 0.0950 Euro
1.2470 1.0743 1.3426 1.3774 Chinese yuan
renminbi 0.1614 0.1613 0.1633 0.1609
Brazilian real 0.3997 0.3143 0.4412
0.4433 Polish zloty 0.2984 0.2635 0.3183
0.3304 Russian rouble 0.0215 0.0172
0.0301 0.0284
30 September 2015
30 September 2014 Average rate
Closing rate Average rate Closing
rate South African rand 0.0789 0.0722
0.0932 0.0884 Euro 1.1121 1.1177 1.3377
1.2624 Chinese yuan renminbi 0.1598 0.1573
0.1614 0.1629 Brazilian real 0.2958
0.2532 0.4400 0.4079 Polish zloty 0.2672
0.2632 0.3201 0.3018 Russian rouble
0.0171 0.0153 0.0277 0.0253
In the interim report for the six months ended 30 September
2015, the group presented pro forma financial information in which
the effects of foreign currency and acquisitions and disposals on
the group’s results were illustrated. The previously reported pro
forma financial information was presented based on ZAR financial
results reported for the period ended 30 September 2015. The
group has presented equivalent pro forma financial information in
note 9 of this release, appropriately adjusted to reflect the
effects of foreign currency and acquisitions and disposal on its
USD results for the respective periods ended 31 March 2015 and
30 September 2015. The group plans to present similar pro
forma financial information regarding its results for the year
ended 31 March 2016.
IMPORTANT INFORMATION
This media release 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 numerous 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.
About Naspers
Founded in 1915, Naspers is a global internet and entertainment
group and one of the largest technology investors in the world.
Operating in more than 130 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.
Naspers companies connect people to each other and the wider
world, help people live their daily lives, and entertain audiences
with the best of local and global content. Every day, hundreds of
millions of people use the products and services of companies that
Naspers has invested in, acquired and built including Allegro,
Avito, eMAG, Flipkart, letgo, Mail.Ru (LSE: MAIL), Movile,
MultiChoice, OLX, PayU, ShowMax, SimilarWeb, and Tencent (SEHK:
00700).
Naspers is listed on the Johannesburg Stock Exchange (NPN.SJ)
and has an ADR listing on the London Stock Exchange (LSE: NPSN).
For more information, visit www.naspers.com.
Summarised consolidated income statement
Year ended Six months
ended 31 March 30
September 2015 2014
2015 2014
Restated Restated
Restated
Restated Note
USD'm USD'm
USD'm USD'm
Revenue 6
569 6 154
2 983 3 200 Cost of
providing services and sale of goods
(3
824) (3 475)
(1 644) (1 743)
Selling, general and administration expenses
(2 525) (2 341)
(1 133) (1 234)
Other gains/(losses) – net
( 59)
( 129)
( 139) ( 11)
Operating profit
161 209
67
212 Interest received 2
45 59
21 19 Interest paid 2
( 247)
( 240)
( 137) ( 124) Other finance
income/(costs) – net 2
( 49) ( 25)
( 40) ( 7) Share of equity-accounted results
3
1 475 1 058
635
910 - excluding net gain resulting from remeasurements*
977 773
517 488 -
net gain resulting from remeasurements*
498 285
118 422 Impairment of
equity-accounted investments
( 39)
( 117)
( 1) - Dilution gains/(losses)
on equity-accounted investments
113
( 86)
129 ( 7) Gains on acquisitions
and disposals
139 75
108 11
- -
Profit before taxation 4
1 598 933
782 1 014
Taxation
( 338) ( 285)
( 146) ( 164)
Profit for the period
1 260 648
636 850
Attributable to:
Equity holders of the group
1 257 571
610 819
Non-controlling interest
3 77
26 31
1 260
648
636 850 Core headline earnings for
the period (USD’m) 1
1 030 853
696 571 Core headline earnings per N ordinary share
(cents)
255 216
169 144 Fully diluted core headline earnings per N
ordinary share (cents)
249 210
166 140 Headline earnings for the period
(USD’m) 1
674 594
468
423 Headline earnings per N ordinary share (cents)
167 150
114 106
Fully diluted headline earnings per N ordinary share (cents)
161 146
111 103
Earnings per N ordinary share (cents)
311 145
148 206 Fully diluted
earnings per N ordinary share (cents)
305 141
145 200 Net number of
shares issued (’000)
- At period end
411 998 397 625
412 555 409 527
- Weighted average for the period
403
576 395 078
411 998 397 625 - Fully
diluted weighted average
405 171
405 469
413 746 409 078 * Remeasurements refer
to business combination-related gains and losses and disposals of
investments.
Summarised consolidated statement of comprehensive
income Year ended Six months
ended 31 March 30 September
2015 2014
2015
2014
Restated Restated
Restated Restated
USD'm
USD'm
USD'm USD'm
Profit for the period
1 260 648
636 850
Total other comprehensive income,
netof tax, for the period
(1 164) ( 117)
( 226) (
281)
Translation of foreign operations
(1 290) (
295)
( 497) ( 387) Net fair-value
(losses)/gains
( 2) -
1 -
Cash flow hedges
34 ( 14)
44
12
Share of other comprehensive income
andreserves of equity-accounted investments
101 187
230 96 Tax on other
comprehensive income
( 7) 5
( 4)
( 2)
Total comprehensive income for
theperiod
96 531
410 569
Attributable to:
Equity holders of the group
123
482
424 560 Non-controlling interest
( 27) 49
( 14) 9
96 531
410 569
The following amounts of other
comprehensive income that have been included in the line
itemspresented above, will not be reclassified to profit or loss in
subsequent reporting periods:
Year ended Six months ended
31 March 30 September
2015 2014
2015 2014
Restated Restated
Restated Restated
USD'm
USD'm
USD'm USD'm
Share of other comprehensive income
andreserves of equity-accounted investments
113 58
58 54 Net fair
value (losses)/gains
( 2) -
1
-
111 58
59
54
Summarised consolidated statement
ofchanges in equity
Year ended Six months ended
31 March 30 September
2015 2014
2015 2014
Restated Restated
Restated
Restated
USD'm USD'm
USD'm USD'm
Balance at the beginning of the period
6 477 6 048
6 903 6 477
Changes in share capital and premium
Movement in treasury shares
94 ( 3)
( 57) 160 Share
capital and premium issued
310 125
57 21
Changes in reserves
Total comprehensive income for
the period
123 482
424
560 Movement in share-based compensation reserve
65
45
29 31
Movement in existing control business
combinationreserve
( 86) ( 34)
( 10) ( 20)
Movement in valuation reserve
31 -
- - Direct retained earnings movements
(
11) ( 1)
- - Dividends paid to
Naspers shareholders
( 160) ( 151)
(
139) ( 160)
Changes in non-controlling interest
Total
comprehensive income for the period
( 27) 49
( 14) 9 Dividends paid to non-controlling
shareholders
( 128) ( 111)
(
110) ( 113) Movement in non-controlling interest in
reserves
215 28
94 36
- -
Balance at the end of the period 6 903
6 477
7 177 7 001
Comprising:
Share capital and premium
2 733 2 329
2 733 2 510
Retained earnings
5 277 4 191
5
748 4 850 Share-based compensation reserve
724 566
811 633 Existing control
business combination reserve
( 193) ( 127)
( 203) ( 129) Hedging reserve
(
2) ( 25)
35 ( 16) Valuation reserve
421 404
593 446 Foreign
currency translation reserve
(2 312) (1 056)
(2 765) (1 420) Non-controlling interest
255 195
225 127
Total 6 903 6 477
7 177
7 001
Summarised consolidated statement of financial
position
31 March
30 September
2015 2014
2015 2014
Restated Restated
Restated Restated
Note
USD'm
USD'm
USD'm USD'm
Assets
Non-current assets
10 236 9 515
10 458 10 317
Property, plant and equipment
1 425 1 619
1 268 1 528 Goodwill 5
1 891 2 451
1 579 2 293 Other intangible
assets
451
541
398 510
Investments in associates 6
6
058 4 535
6
755 5 666 Investments in joint ventures
6
228 164
293 152 Other
investments and loans 6
78
113
67
66 Derivative financial instruments
8 -
9 3 Deferred taxation
97 92
89 99
Current assets 2
700 2 698
2
787 3 230 Inventory
262 274
223 372 Programme and film
rights
154
188
321 350
Trade receivables
398
460
405
441 Other receivables and loans
438 458
440 929 Derivative financial
instruments
37
20
78
19 Cash and cash equivalents
1 226 1 298
1 003 1 067
2 515 2 698
2 470 3 178 Assets classified as
held for sale 8
185
-
317
52
Total assets
12 936 12 213
13 245 13 547
Equity
and liabilities
Share capital and reserves
6 648 6 282
6 952 6 874
Share capital and premium
2
733 2 329
2
733 2 510 Other reserves
(1 362) ( 238)
(1 529) ( 486)
Retained earnings
5 277
4 191
5 748
4 850
Non-controlling shareholders’ interest
255
195
225 127
Total equity 6 903
6 477
7 177
7 001
Non-current liabilities
3 852 3 471
3 920 3 718
Capitalised finance leases
617 643
591
621 Liabilities – interest bearing
3 057 2 601
3 190 2 904 –
non-interest bearing
25
43
18
40 Post-employment medical liability
17 17
14 16 Derivative
financial instruments
12
35
11
28 Deferred taxation
124 132
96 109
Current
liabilities 2 181
2 265
2 148
2 828 Current portion of long-term debt
354 250
208 250 Trade payables
448
505
528 570
Accrued expenses and other current liabilities
1 295 1 327
1 243 1 818 Derivative financial
instruments
47
80
50
74 Bank overdrafts and call loans
26 103
17 115
2 170 2 265
2 046 2 827 Liabilities
classified as held for sale 8
11
-
102
1
Total equity and liabilities
12 936
12 213
13 245
13 547
Summarised consolidated statement of cash
flows Year
ended Six months ended 31
March 30 September 2015
2014
2015 2014
Restated Restated
Restated
Restated
USD'm USD'm
USD'm USD'm
Cash flows from operating activities
Cash
generated from operating activities
574 737
269 228 Interest income received
46 71
23 21
Dividends received from investments
andequity-accounted companies
100 83
147 99 Interest
costs paid
( 227) ( 226)
( 106)
( 107) Taxation paid
( 334) ( 322)
( 152) ( 187)
Net cash generated from
operating activities 159 343
181 54
Cash flows from investing
activities
Acquisitions and disposals of tangible and intangible assets
( 292) ( 436)
( 102) (
134) Acquisitions and disposals of subsidiaries, associates and
joint ventures
( 248) ( 441)
51
( 313) Cash movement in other investments and loans
( 12) 85
( 20) 28
Net cash
utilised in investing activities ( 552)
( 792) ( 71) ( 419)
Cash flows from financing activities
Proceeds from long- and short-term
loansraised
805 1 368
1 517 375
Repayments of long- and short-term loans
( 204)
( 987)
(1 499) ( 92)
Inflow/(outflow) from
share-basedcompensation transactions
171 151
( 6) 178
Dividends paid by the holding company and
itssubsidiaries
( 274) ( 262)
( 249) (
261)
Other movements resulting from
financingactivities
53 ( 62)
5 ( 31)
Net cash generated from/(utilised in)
financingactivities
551 208 ( 232)
169
Net movement in cash and cash equivalents
158 ( 241)
( 122) ( 196) Foreign
exchange translation adjustments
( 149) ( 105)
( 90) ( 47)
Cash and cash equivalents at the beginning
ofthe period
1 195 1 541
1 200 1 195
Cash and cash equivalents classified as
held forsale
( 4) -
( 2) -
- -
Cash and cash equivalents at the end of
theperiod
1 200 1 195
986 952
Revenue
EBITDA1 Trading
profit Segmental review Year ended 31
March Year ended 31
March Year ended 31
March 2015 2014 %
2015 2014 %
2015 2014 %
USD'm USD'm change
USD'm USD'm change
USD'm USD'm change
Internet
6 999 5 573 26
1 394 843 65
1 177 658 79
- Tencent
4 297 3 351 28
1 782 1 199 49
1 616 1 059 53 - Mail.ru
210 236 (11)
114 126 ( 10)
104 115 ( 10) - Ecommerce
2 492 1 986 25
( 502) ( 482) (4)
( 543) ( 516) (5)
Video
entertainment
3 830 3 582 7
920 1 023 ( 10)
732 841 (
13) Print media2
762 829 ( 8)
52 84 ( 38)
22 53 ( 58)
Corporate services
5 1 400
( 30) ( 16) (88)
( 30) ( 16)
(88) Intersegmental
( 55) ( 66) 17
- -
- -
Economic interest
11 541 9 919 16
2 336 1 934
21
1 901 1 536
24
less: Equity-accountedinvestments
(4 972) (3 765) (32)
(1 786) (1 297) (38)
(1 603) (1 142)
(40)
Consolidated 6 569 6 154
7
550 637 (
14)
298 394
( 24)
1 EBITDA refers to earnings before interest, taxation,
depreciation and amortisation. 2 The results of the group’s
associate Abril S.A. ('Abril') have been excluded from the
segmental review for all periods presented.
Revenue
EBITDA1 Trading
profit Segmental review Six months ended 30
September Six months
ended 30 September Six
months ended 30 September 2015 2014
%
2015 2014
%
2015 2014
%
USD'm USD'm change
USD'm USD'm
change
USD'm USD'm
change
Internet
3 763 3 336 13
916 711 29
805 604 33
-
Tencent
2 461 2 082 18
1 150 850 35
1 065 768 39 -
Mail.ru
92 122 ( 25)
42 67 ( 37)
36 61 ( 41) - Ecommerce
1 210 1 132 7
( 276) ( 206) ( 34)
( 296) ( 225) (
32)
Video entertainment
1 790 1 889 ( 5)
492 559 (
12)
399 463
( 14) Print media2
325 380 ( 14)
28 24 17
16 8 100 Corporate
services
- 5 ( 100)
( 6) ( 8) 25
( 6) ( 9) 33
Intersegmental
( 17) ( 30) 43
- -
- -
Economic
interest
5 861 5 580 5
1 430 1 286 11
1 214 1 066 14
less: Equity-accountedinvestments
(2 878) (2 380) (21)
(1 080) ( 895) (21)
( 982) ( 803)
( 22)
Consolidated 2 983 3 200
( 7)
350
391 ( 10)
232
263 ( 12)
1 EBITDA refers to earnings before interest,
taxation, depreciation and amortisation. 2 The results of the
group’s associate Abril S.A. ('Abril') have been excluded from the
segmental review for all periods presented.
Reconciliation of
trading profit to operating profit
Year ended
Six months ended 31 March 30
September 2015 2014
2015 2014
USD'm USD'm
USD'm USD'm
Trading profit 298
394
232 263 Finance cost on transponder
leases and merchant finance
34 35
16 17 Amortisation of other intangible assets
( 68) ( 70)
( 29) ( 34) Other
gains/(losses) – net
( 59) ( 129)
(
139) ( 11) Retention option expense
( 14)
( 13)
( 2) ( 12) Equity-settled
share-based payment expenses
( 30) ( 8)
( 11) ( 11)
Operating profit 161
209
67 212
Note: For a reconciliation of operating
profit to profit before taxation, refer to the summarised
consolidated incomestatement.
1. Calculation of headline and core headline earnings
Year ended Six months
ended 31 March 30 September
2015 2014
2015
2014
USD'm USD'm
USD'm
USD'm
Net profit attributable to equity
holders of thegroup
1 257 571
610 819
Adjusted for:
- insurance proceeds
( 2) -
(
1) -
- impairment of property, plant and
equipmentand other assets
44 10
- 13
- impairment of goodwill and other
intangibleassets
15 144
140 2
- profit on sale of property, plant and
equipmentand intangible assets
- ( 6)
- -
- gains on acquisitions and disposals
ofinvestments
( 150) ( 5)
( 88) ( 10) -
remeasurement of previously held interest
( 3)
( 69)
( 24) ( 3)
- dilution (gains)/losses on
equity-accountedinvestments
( 113) 86
( 129) 7
- remeasurements included in
equity-accountedearnings
( 396) ( 240)
( 45) (
403) - impairment of equity-accounted investments
39
117
1 -
691
608
464 425 Total tax effects of adjustments
( 9) ( 8)
5 - Total
adjustment for non-controlling interest
( 8) (
6)
( 1) ( 2)
Headline earnings
674 594
468 423
Adjusted for:
-
equity-settled share-based payment expenses
136
109
88 56 - reversal/(recognition) of
deferred tax assets
20 6
( 1)
- - amortisation of other intangible assets
150 136
98 68
- fair-value adjustments and currency
translationdifferences
26 ( 4)
36 12 - retention
option expense
12 13
2 10
- business combination losses/(gains)
12 ( 1)
5 2
Core headline earnings 1
030 853
696 571
The diluted earnings, headline earnings
and core headline earnings per share figures presented on the
faceof the income statement include a decrease of USD20m for the
year ended 31 March 2015 (2014: USDnil)and a decrease of USD8m for
the six months ended 30 September 2015 (2014: USDnil) relating to
thefuture dilutive impact of potential ordinary shares issued by
equity-accounted investees.
2. Interest received/(paid)
Year ended
Six months ended 31 March
30 September 2015 2014
2015 2014
USD'm USD'm
USD'm USD'm
Interest received
45 59
21 19
- loans and bank accounts
39 45
19 16 - other
6 14
2 3
Interest
paid ( 247) ( 240)
( 137)
( 124)
- loans and overdrafts
( 182) (
167)
( 109) ( 91) - transponder leases
( 34) ( 35)
( 16) ( 17) - other
( 31) ( 38)
( 12) ( 16)
Other finance income/(cost) – net ( 49)
( 25)
( 40) ( 7)
- net foreign exchange differences and
fair-valueadjustments on derivatives
( 53) ( 33)
( 41) ( 10) -
preference dividends received
4 8
1 3
3. Equity-accounted results
The group’s
equity-accounted investments contributed to the financial results
as follows:
Year ended Six months
ended 31 March 30 September
2015 2014
2015
2014
USD'm USD'm
USD'm
USD'm
Share of equity-accounted results 1
475 1 058
635 910 - sale of assets
3 ( 2)
2 - - disposal of
investments
( 498) ( 285)
( 118)
( 422) - impairment of investments
98
51
76 22
Contribution to headline
earnings 1 078 822
595
510 - amortisation of other intangible assets
101 88
78 44
- equity-settled share-based
paymentexpenses
106 96
77 43
- fair-value adjustments and
currencytranslation differences
( 10) ( 18)
4 7 -
reversal of deferred tax assets
- 3
- -
Contribution to core headline earnings
1 275 991
754 604
Tencent
1 316 951
854 581 Mail.ru
90 89
23 48 Other
(
131) ( 49)
( 123) ( 25)
4.
Profit before taxation
In addition to the items already detailed,
profit before taxation has been determined after taking
intoaccount, inter alia, the following:
Year ended Six months ended
31 March 30 September
2015 2014
2015 2014
USD'm USD'm
USD'm
USD'm
Depreciation of property, plant and
equipment
198 191
93 102
Amortisation 88 88
40
44
- other intangible assets
68 70
29 34 - software
20 18
11 10
Other gains/(losses) – net (
59) ( 129)
( 139) ( 11)
- profit on sale of property, plant and
equipmentand other intangible assets
- 6
- -
- impairment of goodwill and other
intangibleassets
( 15) ( 144)
( 140) ( 2)
- impairment of property, plant and
equipmentand other assets
( 44) ( 10)
- ( 13) -
insurance proceeds
2 -
1
- - fair-value adjustments on financial instruments
(
2) 19
- 4
Gains on acquisitions
and disposals 139 75
108
11
- gain on sale of investments
68 5
88 10 - gains recognised on loss of control
transactions
82 -
- - -
remeasurement of earn-out obligations
2 5
( 1) - - acquisition-related costs
(
16) ( 4)
( 3) ( 2) - remeasurement
of previously held interest
3 69
24 3
5. Goodwill
Goodwill is subject to an annual
impairment assessment. Movements in the group’s goodwill forthe
periods presented, are detailed below:
Year ended Six months ended
31 March 30 September
2015 2014
2015 2014
USD'm USD'm
USD'm
USD'm
Goodwill
- cost
2 792 2 607
2
170 2 792 - accumulated impairment
( 341)
( 269)
( 279) ( 341)
Opening
balance 2 451 2 338
1 891
2 451
- foreign currency translation effects
(
441) 10
( 82) ( 181)
- acquisitions of subsidiaries
andbusinesses
105 201
65 40 - disposals
of subsidiaries and businesses
( 84) ( 2)
- ( 16)
- transferred to assets classified as held
forsale
( 138) -
( 155) - -
impairment
( 2) ( 96)
( 140)
( 1)
Closing balance 1 891 2 451
1 579 2 293
- cost
2 170 2 792
1 974 2 612 - accumulated impairment
( 279) ( 341)
( 395) (
319)
6. Investments and loans
The following relates to the group’s
investments and loans as at the end of therespective periods
presented:
Year ended Six months ended
31 March 30 September
2015 2014
2015 2014
USD'm USD'm
USD'm
USD'm
Investments and loans 6 364 4
812
7 115 5 884 - listed investments
5 291 4 196
5 915 5 042
- unlisted investments andloans
1 073 616
1 200 842
7. Commitments
Commitments relate to amounts for which
the group has contracted, but that have not yet beenrecognised as
obligations in the statement of financial position.
Year ended Six months ended
31 March 30 September
2015 2014
2015 2014
USD'm USD'm
USD'm
USD'm
Commitments 2 785 2 128
3 692 2 737 - capital expenditure
41
70
54 38 - programme and film rights
1 517 1 681
2 318 1 462 -
network and other service commitments
141 145
234 130 - transponder leases
909
40
896 924 - operating lease
commitments
124 134
128
128 - set-top box commitments
53 58
62 55
8. Disposal groups classified as held
for sale
Year ended Six months
ended 31 March 30 September
2015 2014
2015
2014
USD'm USD'm
USD'm
USD'm
Assets 185 -
317 52 Property, plant and equipment
8
-
23 38 Goodwill and other intangible
assets
156 -
210 -
Inventory
2 -
44 - Trade
and other receivables
9 -
24
14 Deferred taxation
6 -
2 - Cash and cash equivalents
4
-
14 -
Liabilities 11
-
102 1 Trade payables
2
-
47 - Accrued expenses and other
current liabilities
6 -
23
1 Borrowings and other long-term liabilities
-
-
11 - Deferred taxation
3 -
10 - Bank overdraft
- -
11 -
9. Pro forma financial information
The group has presented certain revenue and trading profit
metrics on a constant currency, organic basis (‘the pro forma
financial information’) in the tables below. 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, the
quality of which the board is satisfied with.
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
periods ended 31 March 2015 and 30 September 2015,
respectively. 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 organic pro
forma 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 used for the group’s most significant
trading currencies are listed in the introductory commentary to
this release.
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:
Period ended 31 March 2015
Transaction
Basis of accounting
Reportablesegment
Acquisition/Disposal
Acquisition of the group’s controlling
interest inredBus
Subsidiary Ecommerce Acquisition
Acquisition of the group’s additional
interest inFlipkart Limited
Associate Ecommerce Acquisition
Acquisition of the group’s additional
interest inSouq Group Limited
Joint venture Ecommerce Acquisition
Acquisition of the group’s interest in
NeralonaInvestments Limited (eSky.ru)
Associate Ecommerce Acquisition
Acquisition of the group’s controlling
interest inDubizzle Limited
Subsidiary Ecommerce Acquisition
Disposal of Kalahari.com
Subsidiary Ecommerce Disposal
Acquisition of the group’s interest in
SimilarWebLimited
Associate Ecommerce Acquisition
Disposal by Tencent of its ecommerce
businessesto JD.com
Associate Internet Disposal
The net adjustment made for all acquisitions and disposals that
took place during the year ended 31 March 2015 amounted to a
negative adjustment of USD288m on revenue and a positive adjustment
of USD3m on trading profit.
9. Pro forma financial information (continued)
Period ended 30 September 2015
Transaction
Basis of accounting
Reportablesegment
Acquisition/Disposal
Disposal by Tencent of its ecommerce
businessesto JD.com
Associate Internet Disposal
Acquisition by Mail.ru of a controlling
interest inVK.com
Associate Internet Acquisition
Dilutions of the group’s interest in
Flipkart andSouq
Associate and jointventurerespectively
Ecommerce Disposal Acquisition of the group’s
interest in Takealot Associate Ecommerce
Acquisition Disposal of Kalahari.com Subsidiary
Ecommerce Disposal Disposal of Ricardo Subsidiary
Ecommerce Disposal Disposal of 7Pixel S.r.l.
Subsidiary Ecommerce Disposal
Acquisition of control over iFood,
Apontador,MapLink and other smaller subsidiaries withinthe Movile
group
Subsidiary Ecommerce Acquisition
Effects of entering into joint classifieds
businessactivities in Brazil, Indonesia, Bangladesh,Thailand and
the Philippines with Schibsted ASAMedia Group, Telenor Holdings ASA
andSingapore Press Holdings Limited
Associates and jointventures
Ecommerce Acquisitions
The net adjustment made for all acquisitions and disposals that
took place during the period ended 30 September 2015 amounted to a
negative adjustment of USD209m on revenue and a positive adjustment
of USD24m 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.
9. Pro forma financial information (continued)
The adjustments to the amounts, reported
in terms of IFRS, that have been made in arriving at the
constantcurrency, organic financial information are presented in
the table below:
Period ended 31
March 2014
2015 2015
2015 2015 2015
2015 A
B C
D E 2 F 3
G 4 IFRS
Foreigncurrencyadjustment
Groupcompositionadjustment
Organic IFRS Organic
IFRS USD'm
USD'm
USD'm USD'm USD'm %
change % change
Revenue 1
Internet
5 573 ( 306) ( 303) 2 035 6 999
37 26
- Tencent 3 351 ( 50) ( 338)
1 334 4 297
40 28 -
Mail.ru 236 ( 71) 6 39 210
17 (11) - Ecommerce 1 986
( 185) 29 662 2 492
33
25
Video
entertainment 3 582 ( 317) - 565
3 830
16 7 Print media 829
( 70) 15 ( 12) 762
(1)
(8) Corporate services 1 - -
4 5
400 400
Intersegmental ( 66) - - 11 (
55)
17 17
Economic interest 9 919 ( 693)
( 288) 2 603 11 541
26
16
Trading profit 1
Internet 658 ( 31)
3 547 1 177
83 79
- - - Tencent 1 059
( 18) ( 7) 582 1 616
55
53 - Mail.ru 115 ( 34) 2
21 104
18 (10) - Ecommerce
( 516) 21 8 ( 56) ( 543)
(11) (5)
-
- Video entertainment 841 ( 29) -
( 80) 732
(10) (13) Print
media 53 ( 2) - ( 29) 22
(55) (58) Corporate services ( 16)
3 - ( 17) ( 30)
(106)
(88)
Economic
interest 1 536 ( 59) 3 421 1
901
27 24
Notes 1 All figures are
presented on an economic interest basis. 2 A + B + C + D 3 D/A x
100 4 [(E/A) - 1] x 100
9. Pro forma financial information
(continued)
The adjustments to the amounts, reported
in terms of IFRS, that have been made in arriving at the
constantcurrency, organic financial information are presented in
the table below:
Period ended 30
September 2014
2015
2015 2015 2015
2015 2015 A
B
C D E 2
F 3 G 4 IFRS
Foreigncurrencyadjustment
Groupcompositionadjustment
Organic IFRS Organic
IFRS USD'm
USD'm
USD'm USD'm USD'm %
change % change
Revenue 1
Internet
3 336 ( 304) ( 212) 943 3 763
28 13
- Tencent 2 082 ( 25) ( 222)
626 2 461
30 18 - Mail.ru
122 ( 56) 20 6 92
5 (25) - Ecommerce 1 132 ( 223)
( 10) 311 1 210
27
7
Video
entertainment 1 889 ( 263) - 164
1 790
9 (5) Print media 380
( 58) 3 - 325 -
(14) Corporate services 5 - - (
5) -
(100) (100) Intersegmental
( 30) 2 - 11 ( 17)
37 43
Economic interest 5 580 ( 623) (
209) 1 113 5 861
20 5
Trading profit 1
Internet 604 ( 20) 24
197 805
33 33
- Tencent 768 (
10) ( 5) 312 1 065
41
39 - Mail.ru 61 ( 22) 9 ( 12)
36
(20) (41) - Ecommerce
( 225) 12 20 ( 103) ( 296)
(46) (32)
Video entertainment 463 ( 61) -
( 3) 399
(1) (14) Print media
8 ( 2) - 10 16
124
100 Corporate services ( 9) 5 -
( 2) ( 6)
(23) 33
Economic interest
1 066 ( 78) 24 202 1 214
19 14
Notes 1 All figures are presented on an
economic interest basis. 2 A + B + C + D 3 D/A x 100 4 [(E/A) - 1]
x 100
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160418006334/en/
Naspers LimitedMeloy Horn, Tel: +27 11 289 3320+27
11 289 4446Mobile: +27 82 772 7123Head of Investor
Relations
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