26 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

We address big societal needs to empower people and enrich communities

Performance review

Contents 27 Our performance 28 Classifieds 31 Food Delivery 36 Payments and Fintech 39 Etail 43 Ventures 46 Social and platforms 48 Media 50 Financial review 51 Managing risks and responsibilities 53 Monitoring of key risks 27 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Our performance We are building leading global businesses across our core segments of Classifieds, Payments and Fintech, and Food Delivery. And we are actively looking to capitalise on the next wave of growth through our Ventures arm. This year, we made strong progress on all fronts – growing our core businesses, capitalising on new opportunities and, as ever, relentlessly focusing on improving people’s lives. Highlights of the year

Ecommerce

Classifieds Food Delivery Payments and Fintech Etail Ventures Social and internet Media OLX Group Food Delivery had a strong year, PayU made strong progress eMAG We made key investments in Early in the development of our had a strong year, At OLX Group, we shape the meeting all financial goals and in India, where we grew eMAG, our leading etailer in our chosen areas of focus for internet strategy we invested in meeting all financial targets. future of trade to unlock the exceeding targets on operational transaction volumes in India Central and Eastern Europe, Ventures, from education to leading social and internet The digital audience of 2 million hidden value of everything. metrics. The segment doubled organically by 30% (excluding FX continued to grow and blockchain. These included platforms in two of our key average daily unique browsers revenues and increased orders and M&A) and exceeded our strengthen its position. a number of investments in India, high-growth markets, China and grew 28% YoY. became We had considerable success in at an even faster pace while financial and operational where we see big opportunities Russia. ’s fundamentals profitable for the first time in its FY20, meeting our financial and delivering rapid first-party (1P) metrics. PayU continues to lead Takealot for the next wave of growth. All in remain strong with excellent 21-year history. Netwerk24 grew operational goals. We evolved expansion in both iFood and and grow faster than the market Takealot’s group revenue all, Ventures invested US$215m in growth prospects in China, while subscriptions 32% YoY. Contract our business in line with our . Improving in the payment service provider increased by 23% YoY and 12 deals throughout the year as Mail.ru remains the largest Logistics increased volumes strategic priorities, including underlying unit economics and (PSP) segment, and is also negative trading margin well as continuing to nurture its internet group in Russia. 29%. VIA grew profit from R3m strong horizontal and vertical falling customer acquisition costs expanding its ecosystem as improved from 16% in 2019 to portfolio of investments totalling to R15m. And at 77%, staff growth in Russia and Europe, are driving operating leverage in it moves into credit. PayU 11% in 2020. Gross merchandise US$855m, excluding Movile. engagement was a record high. coupled with an increased iFood, which doubled revenue accelerated its capabilities value (GMV) grew 43%. transactions business compared to last year. In the in India by acquiring PaySense. focusing principally on our sizeable Indian market, Swiggy emerging markets. performed well in the face of strong competition. Our investment in food delivery increased by US$364m during the year.

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The opportunity OLX Group Classifieds Classifieds is a dynamic, fast-changing and growing business. We see several Investing Shaping the future of trade key trends shaping the industry. We continued our proactive strategic to unlock the hidden value Customers are increasingly approach to mergers and acquisitions in everything. demanding a seamless, convenient (M&A) – strengthening our Classifieds 309m and safe trading experience. ecosystem by investing in strong monthly active users Competitive pressures are increasing verticals and convenient services. REVENUE(1) (US$’m) across various markets. Advances in We closed several deals during the artificial intelligence (AI) and machine year, including Frontier Car Group 2020 1 299 learning (ML) are enabling companies (FCG) and Kiwi Jobs. 116m 2019 875 to offer transformative user monthly active app users experiences. We are investing in building a TRADING PROFIT/LOSS(1) (US$’m) pioneering autos operation for growth Going from strength to strength markets, to offer the most complete 2020 44 and convenient solution to our 2019 2 customers, primarily in Asia and 3.4m Latin America. To this end, we have paying listers Growing acquired the majority in FCG and are OLX Group had another strong year of PERFORMANCE HIGHLIGHTS building a business unit dedicated to Building on the momentum from the global growth. We are staying on top the autos vertical in our emerging previous financial year when the of the industry shift from being markets. Classifieds business became marketing-led to increasingly product 22 Present in 30 markets, profitable, Classifieds continued to and data-led, growing through a Transaction models take us deeper leading positions in 22 deliver healthy financial results. strong customer-centric approach. into the lives of customers to solve Revenue grew 48% to US$1 299m, and more of their needs. generated trading profits of US$44m. The strongest-performing regions were Transaction revenue (including FCG) Russia and Europe, which jointly amounted to US$393m compared to accounted for 54% of global US$103m in the prior year, growing 282% (164%) and contributing 30% of Classifieds revenue. Over the past overall Classifieds revenue for the year. year, we have invested to strengthen

(1) these markets further, for example Presented on an economic-interest basis. by expanding investment in the car history reports product in Russia (Autoteka), which now accounts for 12% of car-related revenue in Avito. OLX platforms in Europe have been “In the OLX Group we shape CAR AND REAL ESTATE REPRESENT We are one of the the future of trade to unlock the KEY CATEGORIES IN REVENUE (US$’m) upgraded to a more modern look hidden value in everything. We Harmonising data and technology and feel, refreshed brand identity, largest global players deliver superior customer value We have simplified the organisation to and the addition of new features in classifieds. by creating a flawless user further integrate and harmonise data and enhanced performance in order and technology so we can better to improve the classifieds experience experience, underpinned by serve customers and solve their for users. proprietary technology and problems. Each business unit controls smart and personalised (individual data. Although we are proud of its own product, technology and data Encouraging smart choices experience via intelligent tech), safe what we have accomplished resources to innovate faster and solve We also finalised a refresh of the OLX and trustworthy (setting the industry so far, we will continue to grow 1 263 problems more effectively. brand in Latin America, Asia, Africa and Europe. Centred around the standard for safety), and convenience the value of our business by (extending the experience where innovating to solve all friction During the year, we successfully brand proposition of ‘smart choices’, migrated nine markets to our global the updated OLX brand encourages necessary). points in trade, both through platform, developed to serve growth people to embrace classifieds as the We’ve made progress on all four online and offline products.” markets across Latin America and smartest way to buy and sell goods pillars, with innovative solutions Cars 597 Asia. This platform operates as a and services – for convenience, great Martin Scheepbouwer designed for millions of users. CEO, Classifieds Real estate 227 shared, centrally managed, scalable prices, and consciously helping the In improving these strategic pillars, marketplace, allowing core planet by extending the life of items. Goods 122 we enhance customer value, improve functionalities to be built and deployed Jobs and services 191 liquidity, reduce negative experiences, once across multiple markets. Focusing on four strategic pillars Advertising and other 126 In 2020, we executed against four and satisfy more paying customers. strategic pillars: easy and liquid (flawless core classifieds experience), 29 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Looking ahead, we are working with car for cash will help us accelerate the In the 2019 calendar year, through trade in certain second-hand products Classifieds continued group AI teams to accelerate projects implementation of our OLX Autos via our platforms, we saved: Making the most of artificial that focus on better serving customers’ vision – to become the most trusted intelligence and machine learning needs. Data scientists and teams from partner for car buyers and sellers and Electronics (smartphones, laptops and tablets) OLX Group We have used artificial intelligence (AI) different business units will come offer them peace of mind on every Emissions (tonnes 3 and machine learning (ML) to enhance together to share data, collaborate, transaction they make with us. Materials (kg) Energy (GJ-eq) Water (m ) CO2-eq) our core classifieds experience, and innovate at pace. making our platforms more 9.2 million 14.2 million 24.6 million 913 000 % personalised and reducing fraud. Increasing transparency 84 Our Search2Vec algorithm makes We also launched new features to Championing conscious These savings were equivalent to: OLX increased its stake in increase transparency and make our consumption Frontier Car Group to 84% searching more successful for users, by providing relevant results in platforms safer. In Russia, we launched During the year, we launched our first The weight of The annual The annual Over 315 000 the presence of typos, allowing for the Autoteka car history and Global Impact Report (https://www. over 1.03 million energy use of water use of plane synonyms, and incorporating personal transparency reports, which have data olxgroup.com/impact). This pioneering bikes over 372 000 over 61 000 passengers search history. This is live across all on 90% of cars that are listed on Avito, report looked in depth and detail at US households US households flying from 12 our European markets. We have also providing more transparency to users. the positive impact of using our Amsterdam to OLX new app launched in improved the chat experience for We now sell more than half a million Classifieds platforms in four key Los Angeles 12 countries, including India, users in India and Poland, using smart car history reports per month. product lines: mobile phones, tablets, Indonesia, and LatAm markets laptops and fashion. Resource savings since 2016, 9 in FY20 and contextual replies. In all markets, AI has enabled us to detect and filter Investing further in convenience for these products include material Fashion (all products, excluding shoes) Furthering our expansion from weight (including conflict minerals), images better and more efficiently. Energy (GJ-eq) Water () Emissions (tonnes CO -eq) buy-and-sell platforms to transaction- energy-savings equivalent, water, and 2 AI has also helped in banning more centred ecosystems, we have invested carbon-emissions-savings equivalent. 617 000 3.1 million 53 000 580 000 fraudulent buyers and sellers, and heavily in convenience for our users. The report, which was finalised in car history reports We continued to invest in delivery in February 2020, included our horizontal identifying them more quickly. This These savings were equivalent to: purchased monthly in Russia technology is in operation across Russia and Ukraine, and due to platforms in 17 of our biggest markets. Covid-19, expanded pay and ship to Europe and in India, with further The annual energy The annual water Over 18 000 iterations to follow. In addition, Poland, Bulgaria, Portugal and Romania, working on full integration as use of over 15 000 use of over 7 000 plane passengers multicountry phishing attempts in US households US households flying from Amsterdam Europe have been successfully part of our service. Our investment in >5.1m Frontier Car Group and its service to Los Angeles Search2Vec automatically mitigated by combining AI with expands 5.1 million unique human intervention. where car sellers can instantly sell their searches per month with In the coming calendar year, we will measure the impact of additional related content product categories.

To support this, we have developed We invested in building a strategy and network to activate an ecosystem of Fostering a diverse and change. We implemented a global inclusive workplace D&I council to align and coordinate classifieds to enhance We have invested heavily to foster efforts of local country D&I committees. the user experience a diverse and inclusive workplace Our D&I strategy centres on building and activate change in our workforce. more awareness and over time, across our platforms. We believe that a diverse team and improving female representation in an inclusive workforce enhance technology and leadership roles. We company performance, bring different also have dedicated workstreams to points of view, contribute to better ensure all employee journey decisions, and drive innovation. touchpoints are being addressed, Diversity and inclusion (D&I) is now including hiring, developing and a measurable goal within the rewarding our talent. This initiative was existing management team. formally launched with an internal, companywide D&I campaign in October 2019. It included all our markets in activities and events to raise awareness and engagement.

Source: Company Information, Rebel Group Analysis 30 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

In July 2019, for example, OLX Group Classifieds continued joined the Coalition To End Wildlife A force for good Delivering social good Trafficking Online. A coalition of We believe that We are proud of the social good we non-governmental organisations deliver in Classifieds. We are the (NGOs), global tech companies and Classifieds is a lifeline for individuals, from all walks of others, working together to stop force for good in life, and for small businesses. We are wildlife traffickers from operating via good for individuals – enabling them online products and platforms. the world – helping to manage their own budgets and lifestyles, either buying items they Looking ahead people consciously could not afford new, or making We will explore as many as possible reuse and extend the money from items they no longer sustainability programmes to activate need, and especially in times of crisis. our employees and our users. Our life of all kinds of We are good for small businesses too company’s purpose has been codified – providing a simple, easy-to-use and to unlock the hidden value in items, which in turn low-cost leads channel. everything, including making the most of the resources we have in the world. benefits the planet We enable valuable social We will therefore continue to create and communities. transactions whereby people meet innovative ways to extend the life of in person, improving social cohesion products, to enable our people to in a more individualistic world. develop to their full potential, and optimise smart processes that save Our platforms prompt reuse of items time and resources. at scale, often giving items traded second, third, and even fourth lives. Above all, we will make the most of the opportunity we have to champion conscious consumer-centric experiences that are good for people, good for the Investing in communities planet and good for our business. Many of our local teams organise fundraising, educational and awareness activities that additionally benefit local communities. In Poland, the OLX Boutique physical store opened in September 2019, with the US$35 000 proceeds paying for air conditioning at a local hospital’s children’s ward. In Bosnia and Herzegovina, users were rewarded OLX Group obtained allowances for with extra OLX credits if they gave two OLX patent applications in the blood in August 2019. In India, a new Adding to our intellectual capital US Patent Office in 2019. One of the Doing the right thing partnership with the Cyber Peace We have an active team of intellectual patents, US Patent No. 10,575,127 titled Doing the right thing lies at the heart Foundation was launched this year property (IP) experts monitoring and Dynamic Determination of Smart of our responsible approach to to provide ongoing local workshops proactively intervening against IP Meetup, falls within the key area of Classifieds. Our OLX Group ethics to raise online safety awareness infringements. trust and safety. It focuses on officer and our head of the trust and among community members. dynamically providing a suggested safety programme lead the drive to We encourage responsible open- meeting location to the buyer and ensure that our employees do the right source code sharing, under licence, to seller on the OLX chat application. thing to make our business safe, and ensure that our developers are that our users are safe when using our OLX also filed three new patent Making the most of sustainability engaged with the outside developer applications for key product platforms and services. world. This increases our profile as a Our commitment to sustainability functionality in 2019 that listed across multiple dimensions is group among tech talent as an inventors from both the German attractive place to work. becoming a part of who we are and Indian offices. and how we work. Sustainability We protect our OLX brand, both has always been a natural part domain names and trademarks, of our business model, and we aggressively and have seen notable continue to look for new ways success in our efforts to mitigate to amplify our impact. infringing activities during the year. 31 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

The food-delivery opportunity The strong local network effects of Food delivery is an attractive sector food delivery also fit well with our Food Delivery for the group, addressing a core strengths and strategy of partnering Transforming the way people societal need and is executed locally, with local entrepreneurs who deeply source, consume and which utilises group expertise in many understand their geographies. experience food areas. It remains an attractive long-term investment with a massive The local nature of network effects global market potential of over makes the food-delivery market less REVENUE(1) (US$’m) US$330bn(2) by 2022. This is especially susceptible to the potential entry true in the high-growth economies that of big-tech players. As yet, there is 2020 751 are part of our group DNA and no global leader. We see signs of 2019 377 leverage our operating expertise. potential for market consolidation In these markets, food accounts for and we want to be at the forefront TRADING LOSS(1) (US$’m) a relatively high share of total of those developments. consumer spending. 2020 (624) In addition, food delivery has high 2019 (171) We expect even more growth beyond customer stickiness. Given its 2022 – the sector is in the very early on-demand and high-frequency nature, stages despite being sizeable already. food delivery exhibits higher retention rates than other verticals. This aligns PERFORMANCE HIGHLIGHTS Our core food-delivery businesses all Moreover, we are on the cusp of well with our focus on increasing continued to grow and perform well. a tech-enabled paradigm shift in customer satisfaction at scale. iFood remains the clear leader in dining habits, with increasingly more Brazil and has competitive positions meals being delivered rather than in Mexico and Colombia. Swiggy’s home cooked or consumed onsite annualised order volumes increased in restaurants. by 145%. Delivery Hero reported €7.4bn in GMV and €1 238m revenue from continuing operations for its year ended 31 December 2019. Building a global leader The evolving world of food delivery (1) Presented on an economic-interest basis. FOOD VS OTHER VERTICALS: CONSUMER SPEND SHARE MARKET OPPORTUNITY TOTAL CONSUMPTION PER CAPITA BY TYPE (2018) (US$’000) We are one of the leading global Food delivery has been changing investors and operators in food dramatically over recent years and “Since our first investment in delivery, having invested some we believe it will continue to evolve. US$3.0bn in the sector with an internal > iFood in 2013, we have rate of return (IRR) of 34%, based on 40 In the early 2000s, food delivery steadily built the world’s sell-side analyst valuations. Present in over 40 markets, with leading started as a relatively simple most enviable online food- positions in 38 countries, covering over half marketplace business model delivery footprint, with We have a presence in more than of the global population (>4bn people) (Food 1.0). In recent years, own- market leaders in 38 40 markets, with leading positions in delivery challengers expanded food countries. Our online food- 38 countries via direct stakes in our platforms (Food 2.0), increasing the delivery platforms focus on three core companies, iFood, Swiggy selection of restaurants and raising and Delivery Hero, as well as indirect consumers’ expectations for service. product and technology >US$330bn investments that provide further Global market potential >US$330bn by But that is only the beginning. There innovation with the goal of insights into the sector. In all, we cover 2022 (online food addressable market are several exciting growth providing consumers, 2022E per Euromonitor International over half the global population and adjacencies, including cloud kitchens, restaurants and delivery have recorded significant growth Limited, consumer Foodservice 2019) private brands, groceries/convenience partners the best possible across our portfolio. deliveries and restaurant software experience.” that could further expand the growth Our journey in food delivery began profile and improve the ability of Larry Illg with a US$2m investment in iFood via leading food platforms to compete CEO, Food Delivery Movile in early 2013. At that time, successfully (Food 3.0). iFood Brazil’s business was tiny compared to today (8 000 restaurants compared to 160 000+ restaurants in some 1 000 cities). Similarly, we first USA UK Germany Brazil China India invested in Swiggy in 2017 when it was Food and beverages Housing Transport Healthcare Apparel Other present in only seven cities with 12 000 restaurants, compared to 160 000+ (2) Online food total addressable market 2022E restaurants in over 520 cities today. per Euromonitor International Limited, Source: Euromonitor Consumer Foodservice 2019. 32 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

continued Driving change for the better Food Delivery Having identified the strategic need to invest in own-delivery capabilities early on, we have a long track record of building market-leading businesses The increasing importance of the in some of the largest markets first-party model globally. Today, we have the broadest Historically, the industry was global perspective on the food- dominated by the capital-light delivery industry of all leading players marketplace model (third party or 3P), in the sector. We believe the in which meals are delivered by opportunity in food delivery is to restaurants. But the 3P model failed disrupt and transform across the to address customer needs fully on supply chain, from how food is sourced restaurant assortment and delivery Leveraging artificial intelligence to how it is prepared and consumed, experience. Increasingly, the more and machine learning and that the impact of this disruption capital-intensive own-delivery model Another key advantage with 1P is that is likely to have major societal impact. (first party or 1P) has come to the fore, it creates greater touchpoints and We aim to be at the forefront of this driven by the increased growth and opportunities for leveraging data and transformation globally. value-creating opportunities it applying AI and ML along the value presents. Our food-delivery chain. We are making the most of AI- businesses are well positioned for and ML-enabled 1P across our 1P and continue to build and food-delivery businesses to increase invest in this capability. efficiency, make deliveries faster and more reliable – give customers added choice and better service.

iFood IFOOD – A LEADER IN BRAZIL Food platforms evolution has a 54.68% stake in iFood through Movile. iFood is the largest Continuing to lead and grow food-delivery company in Latin Despite fierce competition, iFood has America, with clear leadership in held its ground and still accounts for a Brazil and positions in Mexico and 1 000 much higher portion of online cities covered Food 3.0 Colombia. food-delivery orders in Brazil than its Cloud kitchens + private brands + closest competitors. Still, the share of multiple occasions + multicategory online delivery in the total food-service + restaurant software market in Brazil remains low. iFood Plugging supply gaps and 160 000 Brazil delivers around 30.6 million Food 2.0 enforcing best-in-class quality with iFood’s vision is to restaurant partners monthly orders, an increase of 76% YoY, Own-delivery model cloud kitchens and private brands revolutionise the food to 10.1 million unique buyers from over TAM expansion via enhanced Higher customer stickiness 160 000 active restaurants in some restaurant supply and frequency on the back of universe and create 1 000 cities. iFood also has the highest customer Net Promoter Score (NPS) Food 1.0 Higher customer stickiness multivertical use cases and m different meal occasions >30.6 among food companies in Brazil. Marketplace model and frequency with better delivery a more practical and monthly orders experience exploitation Good enough to capture most pleasurable life for its To build an unparalleled value Platform unit economics at scale can Higher merchant stickiness with obvious delivery proposition to both consumers and use cases match those of standalone integrated restaurant software consumers. iFood aims Competitive moat strength moat Competitive marketplace model merchants, iFood has focused on Strong unit economics Platform unit economics at scale % several strategic initiatives. could improve further due to better to achieve this through 30 logistics coordination, improved its leadership position own-delivery orders fleet utilisation and full profit pools capture in Brazil as well as world-class execution TAM capture potential and innovation. 33 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Loop is proving to be very successful. drivers are picking up and delivering an educational hub. Using a range of Food Delivery continued PERFORMANCE IN 2020 “We’ve focused on logistics improvements using AI so Currently in 54 cities across Brazil, the orders but also, uniquely, the relatively online and class-based learning and plan is to expand and scale Loop as high-risk time when they are going development tools, drivers are our delivery partners can quickly as possible. home after their last delivery. encouraged to improve the quality of arrive at iFood providers’ their service, the way they manage Rolling out first-party capabilities US$ bn Promoting wellbeing To compete effectively against 1P 3 locations at the exact moment their money, and how to plan the next invested over the past three years iFood has developed scalable and challengers, iFood has rapidly built its that the food is ready, steps of their lives – from developing navigate through Brazil’s Making lives better sustainable solutions to improve the further as drivers to changing careers. own 1P capabilities from scratch and Through its Make Lives Better wellbeing and lives of drivers. own delivery now accounts for some crowded cities and diverse programme, iFood is delivering Highlights include a loyalty Training drivers in first aid 30% of total orders in Brazil. % neighbourhoods quickly with ever-greater sustainability benefits programme, iFood Delivery de iFood is pioneering an innovative >102 our own mapping system, and to restaurants, drivers, consumers Order growth >102% YoY Vantagens. It counts on a strong White Helmets first-aid training bring in more revenue. – everyone involved in its rapidly network of partners through which programme that is helping to boost Leveraging data and artificial Our goal is to serve more expanding food-delivery ecosystem. iFood can provide a broad set of the reputation of drivers in the intelligence than 50 million Brazilians as products and services to drivers, community. In partnership with São Improving driver safety while in return increasing each Paulo’s biggest public hospital, drivers iFood leverages data and AI to predict m rapidly as we can. We believe iFood is committed to improving the demand, optimise products and drive >30.6 partner’s user base. It is a great way attend in-class training. Trained drivers iFood Brazil: Order growth 76% – 30.6 reducing food and delivery health and safety of its fast-growing down operating expenses. In particular, to help promote a better life for drivers are provided with first-aid tools and million monthly orders, from 160 000 active costs will boost our iFood driver fleet. Several initiatives were and their families, giving them access content that they can carry with them its deep food network enables iFood to restaurants in some 1 000 cities introduced throughout the year. These generate significant and highly Loop meals and popularity to services and benefits not offered as they travel around Brazil’s busy included traffic safety videos on the anywhere else. cities. They also proudly wear white predictable volumes for its restaurant with customers quickly.” drivers’ platform; an accident button partners in exchange for higher helmets – a mark of their new skills for Fabricio Bloisi on the riders’ app so they can get Helping drivers learn and prosper everyone to see. As well as increasing commissions. Those higher commissions, CEO, iFood instant dedicated support if needed; iFood also wants to help to make sure together with user-preference analysis 9.3m the potential for drivers to save lives, and changing incentives for riders to drivers can have a prosperous and order batching, allow iFood to give iFood: 1P logistics business has grown to this initiative draws attention to their more than 9.3 million orders per month promote safe driving and reduce rider occupation, develop professionally social importance – enhancing its customers top-rated meals at stress. iFood also introduced and increase their compensation. competitive prices and low delivery fees. recognition and respect. Following a comprehensive accident insurance for Learning is key here and through the highly successful pilot, iFood is rolling Artificial intelligence initiatives – all riders, covering not only when the iFood Academy, iFood offers drivers out the initiative in the coming year. iFood 59 • Dynamic pricing aimed at optimising iFood Net Promoter Score in Brazil delivery fees based on the demand, weather and distance • Route optimiser used to determine best routes for couriers customer relationship. With Loop, • Anti-fraud tools powered by AI iFood creates value for all stakeholders: customers receive Introducing more reasonably priced meals and save advanced technology time, restaurants can fully use their In line with its focus on using innovative kitchens’ spare capacity and couriers technology to deliver an ever-better generate incremental income across experience for customers, iFood is a full day. At the same time, order testing robots and drones to increase batching significantly improves unit the speed and reliability of deliveries. economics for iFood. With Loop, everybody wins. iFood uses AI and ML to power its Targeting affordable lunches logistics. This is core to the significant with Loop cost savings passed on to consumers. To expand its customer base, drive It provides the ability to offer quality order frequency and improve lunchtime meals for about US$3 using top-of-mind brand awareness, iFood kitchens during idle time (09:00 to has launched Loop, targeted at a midday). Orders can be batched so relatively unpenetrated segment – iFood delivery partners are able to affordable lunchtime orders. Loop take up to 18 simultaneous orders on meals are prepared by partner delivery runs. As a result, the cost of restaurants but are essentially delivery has decreased by 64% and white-label products, ensuring that the order frequency jumped by more iFood platform is at the centre of the than 65%. 34 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Through the app, iFood will implement SWIGGY – A LEADER IN INDIA Swiggy Food Delivery continued several initiatives to encourage Prosus has a 40.02% stake in Swiggy sustainability practices. The first pilot is – India’s largest food-delivery platform an opt-in/opt-out option that gives with an ambition to become India’s customers the choice not to receive ‘everything app’. Since our initial unwanted disposable items like cutlery, >520 investment in 2017, Swiggy has grown straws and cups. This also helps the cities covered, adding a rapidly – building its core 1P restaurants to save money on new city every two days food-delivery business by expanding purchases. The second initiative is to to over 520 cities; growing its supply give customers the option to replace base to over 160 000 restaurants; plastic packaging and items by unlocking the middle-class segment choosing biodegradable and other >160 000 with curated low average order value sustainable materials. restaurant partners (AOV) offerings and subscription/ loyalty innovations such as Swiggy Another solution is to increase POP, Swiggy Daily, Droppt and Swiggy recycling awareness and behaviour Super; and heavily investing in 1P with the help of WhatsApp and QR infrastructure, vouchers, marketing, codes on packages. Users simply 240 000 product and tech. scan the code and it will initiate a own-delivery partners WhatsApp conversation that explains Leading the way how to properly discard of each type Swiggy currently delivers food from of material. 160 000 restaurant partners leveraging Helping restaurants too The first partnership is with Ação da >95% the network of 240 000 couriers. Building on the success of the iFood Cidadania, one of the major In addition, iFood is planning own-delivery orders Academy for drivers, iFood is also now organisations working to mitigate to encourage best practices in looking to create an academy for the hunger across Brazil. Users can make restaurants, for example by creating 160 000 restaurants on its platform. small donations quickly and easily via a green category on the iFood app The aim is to provide learning and the iFood app. All the money raised and a green restaurants list and/or other support to help restaurants will go to Ação da Cidadania. It is a label. And iFood Shop (the materials develop their commercial and culinary great way to use smart technology to purchase service for restaurants) has skills and know-how so they can truly quickly change the culture of donating stopped selling disposable single-use prosper. The programme is due to in Brazil from special occasions or plastic items such as cutlery, cups launch in the coming year. specific campaigns to simple everyday and plates. gifts. Looking ahead, iFood plans to Initiatives have also begun across build on the initiative to engage more iFood’s offices. These include closely with the people who donate by implementing segregated recyclable giving them reports on how their and non-recyclable waste collection donations are being put to good use. and stopping the use of plastic cups. It is an example of technology with a human touch. Environmental initiatives iFood is undertaking a number of environmental initiatives. Reducing single-use packaging is a priority. In the year ahead, iFood is committed to reducing the amount of disposable Tackling hunger plastic items delivered to consumers. iFood is using its technology to help The work includes providing fight hunger in Brazil. It has created a awareness through marketing platform to facilitate consumer campaigns and stimulating restaurants donations to affiliated non-profit to rethink their procurement practices. organisations (NGOs) that produce low-cost, nutritious meals. The platform offers the opportunity to donate meals easily via the iFood app. 35 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Mr D Food Food Delivery continued DELIVERY HERO – A LEADER IN 35 OF 44 COUNTRIES Through Takealot, we own Mr D, the leading online food-delivery business in . Mr D is reported as part of Takealot as its logistics are >4 000 closely integrated with that company. Expanding into adjacent areas cities covered Swiggy has been active in moving into MR D adjacent growth areas. Capitalising on the relatively underdeveloped restaurant supply in India, it has vertically integrated upstream in the 1.2 bn food-value chain by investing in new people covered 2x supply concepts, including cloud Mr D delivered double last kitchens (Swiggy Access) and private year’s volume in orders brands (Homely, The Bowl Company and other brands). Swiggy’s 44% private-brand revenues have own-delivery orders approached those of top 10 food brands in India in two years. Delivery Hero debt-free basis and set up a joint Looking ahead Prosus has a 21.16% stake in Delivery venture to manage combined Asian Today we have a big local presence Green cloud kitchens Hero, the leading multibrand operations. 216m in fast-growing food-delivery markets food-delivery platform with a presence orders delivered in Q4 2019 through our core portfolio companies. In Swiggy Access cloud kitchens, (+99% YoY) sensors monitor and regulate fuel in 42 markets, including 36 countries The rationale for this strategic Looking ahead, we will continue to and electricity consumption. In where it has a leading position. By the partnership is compelling: Woowa is grow in these core markets and build addition, infra-red burners have 2019 financial year, Delivery Hero had the largest online food-delivery adjacencies – local food-service reduced fuel consumption by 20%. rapidly transformed into a hybrid platform in South Korea via its brand brands, convenience stores, and more. It is part of Swiggy’s focus on 1P/3P player with 1P orders accounting Baedal Minjok, and the country is one 500 000+ We want to play an ever-bigger part reducing environmental impact for around 52% of the total. of the most lucrative food-delivery restaurants in the supply base. Its core in leading the food-delivery revolution across its operations. areas, with a total addressable market region is Middle East (Turkey, Saudi for consumers, restaurants and A global player estimated at US$93bn. This is set to be Arabia, Kuwait and other states) delivery partners around the world. Delivery Hero delivered over a transformational deal for Delivery where it holds strong leadership 216 million orders in Q4 2019, an Hero, boosting its global gross positions. Announced US$4bn increase of 99% YoY. It has a supply merchandise value (GMV) and acquisition of Woowa Brothers in Artificial intelligence initiatives – South Korea. Swiggy base of over 500 000 restaurants. revenues by around 90% and Swiggy’s AI platform helps to 30% YoY respectively(1). predict consumer demand in specific South Korea acquisition geographic areas and at certain In December 2019, Delivery Hero times of the day, opening up further announced its plans to acquire Woowa Brothers’ business in South (1) Pro forma YoY for nine months of 2019, as opportunities for growth, for example per Delivery Hero investor presentation on through cloud kitchens. Korea for US$4bn on a cash and 13 December 2019.

Part of everyone’s everyday Swiggy: Long-term consumer value proposition – Transforming consumers’ lifestyles in a hitherto unimagined way

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Milk, freshly baked bread, Swiggy Bike-Taxi when running Working lunch with Bowl Company Daily fruit salad from Swiggy Daily Special birthday dinner for Night snacks – Swiggy Store or Dark Pods Remember meal diapers, cold pressed juice late for meeting at 09:30 Swiggy One customers for last-minute convenience (eg chips, subscription from previous night ice-cream, beverages) 36 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

The opportunity GLOBAL PAYMENTS INDUSTRY REVENUES (US$’tn) KEY TRENDS IN PAYMENTS Payments remain one of the most Payments important and fastest-growing areas in financial services worldwide. Global US$600bn and Fintech payments revenues are expected to Building a world without grow from US$1.9tn in 2018 to US$2.7tn 20 2.7 20 financial borders where by 2023, with 60% of relative growth high-growth US$600bn PayU operates in 18 high-growth markets, everybody can prosper coming from emerging markets. In markets five of which are in the top 10 fastest- addition, online payments are growing markets (India, Russia, Argentina, 1.9 Turkey and Mexico) expected to increase at double the REVENUE(1) (US$’m) rate of offline payments. Four key 1.3 trends are shaping the industry: growth 2020 428 is driven by high-growth markets and >300 2019 360 the shift from cash to digital payments; payment 2022 accelerating consolidation in the options Digital payments are expected to overtake TRADING LOSS(1) (US$’m) payments market is creating global cash payments by 2022 in India players at scale; alternative payment 2013 2018 2023F 2020 (67) methods are growing fast; and data is Source: McKinsey Global Payments report, September 2019 2019 (43) enabling new service.

PERFORMANCE HIGHLIGHTS Pioneering credit in India Strengthening in Turkey Expanding in Southeast Asia Ensuring responsible lending PayU continued to grow well – In line with PayU’s mission to build a We completed the acquisition of Iyzico We completed the acquisition of a PayU’s financial services, and delivering solid results, Continuing to grow well (excluding world without financial borders, we to strengthen our position in Turkey’s majority stake in Red Dot to expand especially its growing credit business strengthening its market position in FX and M&A) have been pioneering credit for high-growth ecommerce market, which our presence across the Southeast in India, are key drivers for removing India, boosting its credit business, consolidating in Turkey and PayU’s revenue grew 19% YoY underbanked people in India. We experienced a compound annual Asian market. Southeast Asia is an financial borders and enabling digital expanding in Southeast Asia. (excluding FX and M&A). The growth started building an inhouse credit growth rate (CAGR) of 30% between attractive base to enter one of the inclusion. PayU aims to use technology and data responsibly to increase (1) came on the back of 26% YoY growth business two years ago and 2014 and 2017. Turkey has a large most dynamic markets globally, with Presented on an economic-interest basis. in the volume processed in the organically scaled the business to presence of global merchants and is high ecommerce growth (62% CAGR financial inclusion and broaden access payments business. The processed US$10m monthly loan issuances by now our single-largest market in the 2015 to 2019) and a high share of to finance for underserved segments volumes reached US$37.9bn, driven by December 2019. Starting first with Europe, Middle East and Africa (EMEA) alternative payment methods (70% of of the population. At the same time, “Our mission is to connect 30% growth in the number of LazyPay, a delayed-payment region. With the integration of Iyzico, ecommerce). Many of our crossborder PayU is aware of the importance of consumer and merchants transactions processed. convenience product, we graduated to PayU will be able to leverage its merchants were expecting local applying clearly defined principles on online across all high-growth issuing instalment loans, all the while existing relationships with global payment processing for Southeast responsible lending and aligning markets around the world. We Sustaining growth in India managing the credit losses. merchants and Iyzico’s product Asia. This transaction gives us access internal processes towards this end. are now present in more than The payments business in India has capabilities to drive incremental to local payment-processing For this purpose, PayU has formally 20 markets with more than continued to be the growth engine – To scale our credit business in India, crossborder volume. capabilities in the region as well as defined a responsible lending with volumes growing 30% YoY. India’s we recently acquired the majority unique payment solutions for the hotel guideline to govern its approach in 2.5 billion people who need processed volumes were US$19.4bn, shareholding in PaySense. PayU is access to digital payments and hospitability segments. We have this vital area, including elements 51% of the total volume processed by setting the ambitious goal to rapidly integrated Red Dot into our global hub of responsible AI and the avoidance and alternative lending PayU. The structural shift to digital grow its online credit business by in order to offer all existing merchants of bias and discrimination within solutions. We are a leading payments in the country, together with combining PaySense and LazyPay. access to the Southeast Asian market. automated and data-driven credit provider of more than 300 our ability to increase conversion rates decision models. local payments solutions to for enterprise merchants and our global brands and a ability to enter new segments such as technological partner of major billing and small and medium-sized financial institutions. We are businesses have been the main drivers of this sustained growth, above Key trends in payments different because we were market rates. ‘born local’ but operate at The shift from The increasing The growth in Data enabling global scale, focusing on data Acquiring Wibmo cash to digital share of alternative crossborder new services and digital-only.” With the acquisition of Wibmo, a money payment methods payments payment security leader, we were (APM) Laurent Le Moal CEO, PayU able to create closer partnerships with leading banks, enabling a reduction in transaction failures, therefore further strengthening our relationship with merchants. 37 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Payments and Fintech continued PERFORMANCE IN 2020 Adults without credit bureau coverage – regional % of population >US$37.9bn processed payment volume, up 29%, Gaining a real understanding Strengthening the data 51% contributed by India 63% science team Europe and of financial prosperity Central Asia We wanted to understand better what We strengthened the data science financial prosperity actually means for team by hiring a new chief data our customers and our markets. To this scientist and will hire more team bn 88% end, PayU created and published an members in the year ahead. The data >10 Middle East and data fields captured innovative financial prosperity barometer. team enables both payment and North Africa credit decisions to leverage the data 87% The report was highly enlightening, successfully from the payments and South Asia underlining how prosperity means credit businesses. different things to individuals across >1.18bn different markets. Throughout the transactions, up 30% report, PayU has explored the depths of these different views on what it Value-added services % % means to be prosperous and looked We are developing a platform to offer 60% 93 78 Sub-Saharan Africa value-added services to merchants, Latin America East Asia at how access to different financial and Caribbean and Pacific services can impact them. lenders and banks. Multiple initiatives >10m are underway, including providing loan transactions per month Building on its increasing global improved analytics and data insights impact and the understanding gained to our merchants; improving our credit from the report, PayU’s ambition is to models using ML capabilities; providing continually rise to the challenge of credit scores to other financial services US$66m financial inclusion and education. institutions; and preventing fraud in Majority acquisition in PaySense Using the technology of today, and payment transactions. to scale our credit business in India tomorrow, PayU aims to truly create a Acquisition of Iyzico in Turkey world without financial borders where everyone can prosper. Acquisition of digital payments meet-and-greet sessions across minimising financial risk, as well as Training our people in artificial company, Wibmo, for US$66m multiple cities where the teams managing conduct risk and fraud and intelligence and machine learning Majority acquisition in Red Dot Payments working on AI/ML projects shared Ensuring customer safety protecting the interests of the broader Providing enterprisewide training to their work and helped colleagues to and wellbeing ecosystem and customers. These are Using data to build the business our employees on AI/ML has been understand how AI/ML can be used Our commitment to customer safety core processes for PayU and as such We have made several strides in our top priority. During the year almost in business. We are committed to and wellbeing includes initiatives to are frequently tested through both incorporating AI and ML capabilities in 650 employees participated in various providing avenues and encouraging educate customers on safety and internal controls and external audits. our own operations and training the ML/AI programmes delivered by employees to gain skills in this area. fraud prevention. workforce in the AI/ML technologies. MyAcademy. We also arranged Building external partnerships As a leading payment service provider We continue to build external and increasingly broader financial relationships with partners to enrich services player, we undertake Analysing the whole system our data set beyond the ones significant investments into customer We have significantly Financial prosperity barometer – key findings generated by our own payments and product safety. This includes enhanced our fraud detection business. As part of this broad and investments into our capability to and prevention – going from deep commitment, any M&A project prevent fraud for our merchants and analysing a selection of data we undertake will include a rigorous end-customers. We continually roll out data due diligence and data synergies state-of-the-art AI- and ML-enabled points to now using ML to component. fraud solutions. quickly and effectively analyse Over 75% of 60% of respondents 50% of people in For over 30% of Only 25% of Nearly one in 10 the whole system. Quicker, respondents feel financial the countries respondents ‘being respondents feel (9%) respondents In our payments business as well as in better fraud detection means believe that services have surveyed believe happy with your life’ that ‘being wealthy’ declare that they the growing credit business, we act as improved security, peace of financial services already helped you cannot be and ‘good health for in itself is necessary don’t have access a gatekeeper in a broader ecosystem. can help people them to become prosperous without friends and family’ for prosperity to any major In order to fulfil this responsibility, we mind and trust for consumers plan for future more prosperous access to financial are the key financial service have strict and well-defined customer and merchants, which is good prosperity services characteristics for onboarding and underwriting news for us. defining ‘prosperity’ processes in place. This focuses on 38 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Payments and Fintech continued INDIA OFFERS A LARGE OPPORTUNITY IN PAYMENTS AND CREDIT Contributing to communities India digital payments(1) expected to reach ... and India digital lending(2) to grow to We undertake a range of initiatives designed to contribute to communities across the Payments and Fintech US$1tn US$450bn Protecting privacy and data Creating a diverse and segment. To share a flavour of what we do, we highlight a few of our of payment 1 000 consumer We take IT security and data privacy inclusive workplace volumes lending extremely seriously. Keeping We are focusing on creating a activities in Poland. payments-related data and any kind diverse and inclusive workplace +28% of personal or otherwise critical across all our offices and regions. PayU is one of the co-organisers of information safe is of utmost This year has seen considerable the RogaLOVE campaign in Poland, importance to our business – it is at progress in promoting diversity as a which aims to help in improving the the heart of the continued trust of our key element of hiring and retention, treatment conditions for children customers and the general public. with several initiatives being carried with cancer. Through a dedicated website, everyone can buy delicious 454 Based on a formally defined risk out by the local teams, such as the +25% +35% appetite statement, PayU has set up introduction of nursing rooms for new traditionally made buns, pay for them specific minimum security standards mothers. through the PayU platform and share them with loved ones, friends, clients, that all PayU businesses and regions 227 +40% need to comply with, on top of India has led by example by creating business partners or colleagues. All expectations that are formulated by a day-care centre in our main office the income from the sales is allocated to a charity goal – to help children 76 75 the payments industry (PCI) and other of Gurgaon and introducing a 14 industry standards or regulations. programme to help young mothers with oncological illnesses through Regarding privacy, PayU has a global return to the workplace. the support of Dzieciaki Chojraki, FY14 FY19 FY25F FY14 FY19 FY25F the Association for the Development privacy programme built around (1) Digital payments include cards, net-banking, UPI and wallets. General Data Protection Regulation In Israel, we have implemented a of Marrow Transplantation and (2) Digital lending includes loans disbursed digitally at both online and offline channels. (GDPR) requirements from the EU. programme to encourage and help Paediatric Oncology. Source: Research BCG-Google Digital Lending Report PayU is well prepared to comply with more females to embark on a career and is effectively ahead of industry in software development. standards in most non-GDPR markets. Our biggest charity campaign in Looking ahead Poland is with the Great Orchestra of PayU will maintain its strategy to drive Christmas Charity (GOCC). We have strong growth in the years ahead. been working with the GOCC since PayU will put even more emphasis on 2002. The primary objective of the two key areas: increasing our GOCC is to support healthcare in investment in India, and credit. A key Poland by purchasing state-of-the-art focus here will be to invest further in AI medical equipment for Polish hospitals and data science capabilities to build and clinics. Each year more and more new services. funds are raised on the internet. PayU is the financial partner of this charity and provides commission-free secure online payments. In 2020, PayU helped collect over US$7.5m. The total value of transactions secured by PayU since 2002 is more than US$30m. Our employees in Poland have also launched a charity project called PayU Volunteers, which affords the opportunity to all PayU Polish employees to volunteer in local hospitals and charities, contributing their time and skills. 39 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

(repair service) and Conversion eMAG MARKET eMAG opened a new central Etail Marketing (performance marketing). OPPORTUNITY distribution and shipping hub in The opportunity In the 2019 financial year, eMAG also October 2018 and a new regional hub Focusing on sustainability Giving customers across The etail opportunity across Central acquired a 54% stake in EuCeMananc, in October 2019 to provide improved eMAG is committed to ensuring Central and Eastern Europe and Eastern Europe is substantial. a food-delivery platform in Romania. fulfilment services to its customers and sustainable growth and positive the very best etail experience eMAG’s geographies promise robust to a greater portion of its 3P sellers. impact. To this end, eMAG focuses 26% The team is currently working on a on four key areas: contributing to the growth. These broader growth trends ecommerce next-generation warehouse, expected communities it operates in; respecting (1) combine with a relatively low level of penetration in REVENUE (US$’bn) Giving customers the very best to be ready later in 2020. natural resources and climate; a just etailing. Ecommerce penetration in eMAG offers customers significant Romania is just 7% 2020 1.76 Romania is just 7% compared to 15% in vs 15% in the US society; and providing meaningful selection, value and convenience. and 26% in China. To elevate the service levels of its careers for employees. 2019 1.85 the US and 26% in China. Rates in Consumers can choose from a wide Hungary (5%) and Bulgaria (3%) are Rates in Hungary ecommerce platform, eMAG is building selection of products across multiple (5%) and Bulgaria its Sameday courier business. TRADING LOSS(1) (US$’m) similarly low. The ecommerce market categories, from electronics to fashion (3%) are similarly is expected to grow by 15% annually Sameday aims to achieve a 99% to home. To ensure convenience, low on-time delivery rate, compared to the Supporting local businesses 2020 (62) in Romania, 8% in Bulgaria and 12% eMAG offers buyers a range of in Hungary. 80–90% rates achieved by other In 2019, eMAG introduced the Open 2019 (150) delivery options, from home delivery players in Romania. Romania programme. The aim is to An ecommerce leader to locker pick-ups. support local producers, companies in Central and Eastern Europe % To ensure customers have a full suite of and communities by enabling small PERFORMANCE HIGHLIGHTS 15 delivery options, eMAG is deploying eMAG is dedicated to becoming businesses to trade their products and eMAG, our leading etailer in Ecommerce Central and Eastern Europe’s leading expected to grow automated lockers (EasyBOX) across services on eMAG’s platform without Central and Eastern Europe Improving the customer experience Romania, giving customers 24/7 paying any commission. So far, over continued to grow and strengthen online retailer. The company operates by 15% annually in a first-party/third-party (1P/3P) eMAG has a market-leading customer Romania, 8% in service, pick-up flexibility and 99%+ 2 000 partners have joined Open its position. eMAG continued to on-time delivery rates. grow well – delivering solid results, business-to-consumer (B2C) satisfaction Net Promoter Score (NPS) Bulgaria and 12% Romania. In 2019, the programme strengthening its market position. of 70. in Hungary registered around 80 000 orders and ecommerce platform in Romania, eMAG has also increased its focus on (1) Presented on an economic-interest basis. Hungary and Bulgaria under the generated sales of around US$2.9m for eMAG aims to improve the customer its ‘fulfilled by eMAG’ model, where it the business. eMAG brand, and a leading fashion experience through four strategic manages delivery logistics for its 3P shopping destination in Romania initiatives: building its own delivery partners. “We aim to build the largest under the Fashion Days brand. In courier business, Sameday; rolling out hybrid (1P/3P) ecommerce addition, the company operates its network of automated parcel To complement its online platform, Sameday (courier delivery), PC Helping sellers sell platform in Central and lockers; expanding its ‘fulfilled by eMAG is building showrooms across Through the Sellers’ Academy, eMAG Eastern Europe. With this Garage (specialised online retailer eMAG’ model; and expanding its Romania and its international markets. focused on gamers), Depanero provides advice, information and platform and our showrooms. This offline presence gives eMAG a training, including over 100 online entrepreneurial spirit and strategic advantage over pure online videos, to help sellers develop their know-how, we focus on competitors. ecommerce businesses. Launched in giving our customers the May 2019 for eMAG Marketplace very best in terms of sellers, the Sellers’ Academy programme includes over 236 video Instant money back selection, value and tutorials and 382 articles. New articles In 2019, eMAG introduced the ‘instant convenience – a winning and videos are constantly being money back’ service for all products combination that enables added. To date, the Sellers’ Academy regardless of the sales channel. us to grow and lead has been viewed over 350 000 times long term.” and has over 258 000 unique visitors. Iulian Stanciu CEO, eMAG Applying artificial intelligence and machine learning Working closely with the group AI team, eMAG applies AI and ML across many areas of its business, for example personalisation, through recommendation engines, and risk engines to detect potential fraud. 40 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

As a result, eMAG has reduced continued and Potential Leaders) with a focus on eMAG ACADEMY PERFORMANCE IN 2020 Etail leadership and business strategy. cardboard used per delivered unit There are also Technical, Commercial, Managing waste by 40% YoY, and plastic used per Marketing and Retail Academies for eMAG’s waste-reduction initiatives delivered unit by 17% YoY, while also business units to increase both hard include using recycled packaging reducing the incidence of product and soft competencies in these key >355 000 material, choosing the smallest damages per deliveries. 70 functional areas. In addition, eMAG’s views, 260 000 unique visitors size box for shipping to avoid market-leading Net Promotor Score (NPS) online learning platform draws on the overpackaging, avoiding single-use Looking ahead groupwide MyAcademy resources as plastic, promoting the recycling of eMAG aims to continue growing well as custom-built inhouse and shipping materials after customers faster than the market, to outpace external courses. eMAG’s We Care About programme receive their shipment, and also competitors, gain market share and In 2019, eMAG aims to keep children with poor offering customers free-of-charge increase profitability. eMAG is also school results in their school pick-up for their old white goods to looking to put together a formal introduced the ‘instant population and to support the ensure they are disposed of green plan to strengthen sustainability money back’ service for Promoting employee wellbeing accumulation of knowledge responsibly. and optimise positive environmental eMAG places a big emphasis on necessary to pass the national impact. Above all, eMAG will invest in all products regardless employee wellness and wellbeing. examination. The programme Warehouse initiatives include technology and talent to improve Employees are encouraged to includes afterschool centres and designing processes and allocating services and excel at giving of the sales channel. develop and exercise both mentally dedicated teacher teams organising resources to consolidate as many customers the very best experience and physically. To this end, health and assisted-learning groups for children multi-unit orders as possible into single across its businesses. sports subscriptions are included in with poor school performance. parcels; investing in reusable boxes to employee benefits packages, there is replace single-use cardboard boxes an onsite gym at eMAG’s head office, for transferring products from the and regular wellness sessions are warehouse to showrooms; and using held. Reducing carbon emissions robots to wrap goods containers in foil eMAG strives to reduce its carbon automatically and more efficiently. Through the 140 Beats per Minute emissions. The introduction of its Foundation programme, eMAG works EasyBOX network, for example, has with communities to promote sport as reduced last-mile delivery and Generating innovative ideas an essential part of education. The promoted stacked delivery. As the eMAG continues to hold annual programme also has an internal network grows, so will the hackathons. At these inspiring events, component, with training sessions environmental benefits. coders get together for 24 hours to and grand prix-style competitions for code something amazing, winning eMAG employees. In addition, eMAG has a fleet of 100% great prizes. Now in their sixth year, electric delivery vehicles for last-mile the hackathons get bigger and better urban deliveries. This green delivery every time. They have proven to be service is a first for Romania. The a novel way to generate new ideas Encouraging educational initial pilot consists of six electric vans, for the business and for customers. excellence with plans to expand to 70 electric eMAG’s EasyBOX service, for example, Across Romania, eMAG’s Let’s Go to vehicles in the coming year. began life as a hackathon idea. School Olympics! programme focuses on raising the level of education of Starting in 2020, the eMAG children. The programme provides warehouse in Joița și Chitila will be performance training in the best powered by 100% green energy. Enhancing learning and possible conditions to all children who development want to achieve above the average eMAG also participated as an eMAG undertakes a number of level. To this end, mathematics, physics authorised seller in the state-funded initiatives to enhance employees’ and informatics training centres have Cash for Clunkers programme for learning and development. Future 25 been implemented in almost all electrical appliances, both in the is a unique talent acceleration major cities. 2018 pilot and in 2019. This involves programme created by eMAG to find replacing used equipment with the brightest, most promising 25 newer, more energy-efficient home youngsters, ready to become appliances. tomorrow’s leaders. Leadership learning programmes focus on three areas: Leading Self, Leading People and Leading the eMAG Business. The Leadership Academy is in its second year. It has three levels (Harvard, TMI 41 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Takealot to Takealot and 80% of user visits to Etail – Takealot Superbalist.com were from mobile The opportunity devices. The Mr D business is Continuing to grow and South Africa’s ecommerce sector holds predominantly mobile-based. innovate as South Africa’s notable promise and shows positive leading etailer Home-grown success momentum. The country has a low rate Over the past nine years, Takealot has of internet penetration – 63% in 2019 grown from 25 employees to more according to Euromonitor – and online REVENUE(1) (US$’m) than 2 800 today. Moreover, 88% of retail penetration of just 1.4%, these employees are black people, compared to 16% worldwide. This 2020 392 44% are black women and 2% black leaves considerable scope for 2019 318 people with disabilities. Takealot.com’s consumers to migrate from offline marketplace provides third-party to online. From 2019 to 2023, this TRADING LOSS(1) (US$’m) sellers the opportunity to sell their migration is expected to drive 21% products online while making use of annual growth in online retail. That 2020 (43) Takealot’s platform, supply chain and means the etail growth opportunity 2019 (50) logistics capabilities. This provides remains substantial, particularly for local businesses a cost effective way businesses that can lead in delivering to enable themselves digitally. PERFORMANCE HIGHLIGHTS an excellent customer experience. Throughout the year, Takealot South Africa’s etail leader continued to grow and strengthen South Africa’s leading etailer its position as South Africa’s leading Takealot.com grew GMV 29% YoY. etailer. Takealot group revenue Continuing to grow and lead This was driven by the 3P marketplace increased by 23% YoY and negative in South Africa business which grew 77% YoY and now trading margin improved from 16% The Takealot group in South Africa in 2019 to 11% in 2020. All accounts for more than 39% of GMV. businesses contributed to growth. includes three major businesses: Revenue grew 28%, slower than GMV, Gross merchandise value (GMV) Takealot (general online retail), due to the shift to 3P. Trading losses grew 43% YoY. Superbalist (apparel and footwear) continued to decrease YoY, with the and Mr D Food (Mr D) (food-delivery (1) Presented on an economic-interest basis. negative trading margin improving business). from 16% in 2019 to 11% in 2020. A mobile winner Moving into profit for the first time “The South African market Growth continues to come In December 2019, Takealot achieved still lags the rest of the world predominantly from mobile channels. its first-ever profitable month in the in terms of online retail as a Throughout the year, 69% of user visits history of the company. percentage of total retail. As South Africa emerges from Strengthening the fashion business Forging ahead as the number 1 the threat of Covid-19, the ONLINE RETAIL FORECAST (US$’m, EXCLUDING INFLATION) MARKET OPPORTUNITY Superbalist grew revenue 44% in food delivery online opportunity will only organically YoY, as the fashion South Africa’s leading food-delivery increase and Takealot is business continued to work through the business, Mr D, continued to grow at a well poised to continue integration of Spree. Negative trading rapid rate – revenue increased 83% capitalising on this trend margin improved from 32% in 2019 to YoY. In August 2019, Mr D implemented 63% 2 689 through a keen focus on 21% CAGR 23% in 2020, demonstrating the cost an accelerated-growth plan for South Africa’s low rates of internet customer service, technology savings of the merger. In August 2019, customer acquisition. It exceeded the penetration (63% in 2019 according to 2 171 Euromonitor), and online retail penetration and supply chain and Superbalist strengthened its private- new plan’s elevated order target – (1.4% in 2019 according to Euromonitor) label and general-management delivering roughly double last year’s logistics expansion.” 1 781 leave considerable scope for consumers capabilities with the purchase of Design volume. to migrate from offline to online Kim Reid 1 483 Liaison, a private-label design and Founder and CEO, Takealot 1 241 manufacturing company. Customer service is key 1 054 Customer service is core to all A great Black Friday Takealot’s businesses. It is about Both Takealot and Superbalist keeping promises without fail, and performed well over Black Friday – doing this at scale. Two key elements 21% handling the biggest ever volume drive this customer service – great From 2019 to 2023, this migration is of orders, leading to record GMV people and great deliveries. expected to drive 21% annual growth in online retail FY18 FY19 FY20 FY21 FY22 FY23 on the day.

Source: Euromonitor 42 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

The group continues to invest in and continued Looking forward Etail grow this capability. Through the year As more and more people move to for example, it launched 45 click-and- Making it easy for people online in South Africa, Takealot is at the collect points around the country. to donate forefront of this transformation. Looking These have proved extremely popular. Takealot also has a long-standing link ahead, the focus across all three Click and Collect now accounts for 15% with Beautiful Gate, an organisation businesses remains the same – to of orders. dedicated to supporting the welfare of provide satisfying customer service, under-privileged families in Cape value and convenience and in so During South Africa’s initial national Town. Whenever someone checks out doing, to continue to lead and grow lockdown period between 26 March of a Takealot site, they have the option for long-term sustainable success. and 30 April, all restaurants were to donate to Beautiful Gate. Around mandated to be completely closed R100 000 was donated in Market opportunity and Mr D could only operate at a the first year of the partnership. South Africa’s low rates of internet small fraction of its capacity, delivering Eight years on, donations now total penetration (63% in 2019 according to essential goods. To support the Mr D R4.5m. Euromonitor), and online retail driver network, a driver fund was penetration (1.4% in 2019 according to established to provide the majority of Euromonitor) leave considerable Mr D Food’s drivers with a minimum scope for consumers to migrate from earnings guarantee for the five-week Ongoing environmental initiatives offline to online. period during which restaurant food Environmental initiatives include delivery could not operate. Takealot using 100% recyclable From 2019 to 2023, this migration is packaging, with paper rather than expected to drive 21% annual growth In addition, to ensure driver safety, plastic voids. An updated transport in online retail. Takealot has provided hand sanitiser fleet of newer, larger, more energy- and implemented the promotion of efficient vehicles also saves money World Health Organization (WHO) and as well as being better for the South African health authorities environment. best-practice hygiene guidelines to all drivers and staff. All deliveries are More energy-efficient LED lighting made contactless, and pick-up/drop-off is also being introduced in the points were temporarily closed. distribution centres. In addition, where possible, Takealot is using sea freight rather than airfreight, which is more cost efficient and Focusing on artificial intelligence environmentally friendly. and machine learning Takealot continues to invest in building its AI and ML capabilities. The focus of their work is on discovery, search, TAKEALOT PERFORMANCE IN 2020 The Takealot Delivery Team (TDT) manages and executes all deliveries churn prevention and lifetime value Investing in great people for Takealot, Superbalist and Mr D. calculations and models. In the year Takealot focuses on hiring great TDT comprises a combination of ahead, the plan is to centralise people and developing them. The Takealot employees and a network resources to further increase the 39% group continued its graduate of independently owned delivery application of AI and ML to help drive 3P gross merchandise value (GMV) recruitment programme for software franchises. There are now 60 the business forward. accounts for 39% of total GMV engineers, and the expansion of privately owned franchises thriving development offices in Stellenbosch on growing volumes of orders and and Johannesburg has helped attract employing around 4 900 drivers. further engineering talent in a Franchises are held to minimum Investing in local businesses challenging environment. standards when onboarding and and people R4.5m Takealot undertakes various BBBEE customer donations facilitated by managing drivers (including driver’s Takealot at checkout to Beautiful Gate, an licence, identity documents, work initiatives. These include bursaries to organisation dedicated to helping family permits and criminal record checks). six software engineering students; welfare, based in Championing end-to-end delivery Takealot has a compliance team R1.8m in funding to two Takealot The other core differentiator is which undertakes periodic checks delivery team franchisees to expand end-to-end delivery. Takealot is now to ensure that these standards their operations; and sponsored the largest direct-to-home delivery are upheld. learnerships for 79 participants, platform in South Africa. including 59 people with disabilities. 43 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

EDUCATION – MAKING LEARNING Ventures ACCESSIBLE TO ALL Identifying and nurturing Identifying and investing in the next wave the next waves of growth Our Ventures arm partners with entrepreneurs around the world to build leading technology companies in US$6tn REVENUE(1) (US$’m) exciting new high-growth markets. Our Global spend on education is set to grow at 5% CAGR over 2015–2020, reaching over goal is to identify and nurture the next US$6tn in value by 2020 2020 99 wave of growth for the group – the 2019 38 next big areas where we can build leading global businesses that help improve people’s lives. To this end, we TRADING LOSS(1) (US$’m) focus on trends, technologies, themes 200m and geographies to select investments Each month, 200 million students in 2020 (57) with the potential to experience 35 countries, all turn to Brainly to ask more, 2019 (54) significant growth in the coming know more, and learn faster decades. PERFORMANCE HIGHLIGHTS To date, we have invested a total of Throughout the year, we made key US$855m into 20 companies investments in our chosen areas of 45m worldwide, excluding Movile as well focus for Ventures, including Codecademy has taught over 45 million education, blockchain and India. All as Food Delivery that was spun out of people around the world to code in all, Ventures invested US$215m in Ventures into this segment, across 12 deals throughout the year as well education, elder care, blockchain, as continuing to nurture its portfolio of logistics, mobility and more. investments totalling US$855m, excluding Movile, as well as Food Targeting winners 295m Delivery that was spun out of In any given year, we might formally With 57 000 instructors teaching Ventures into this segment. 150 000 courses, Udemy serves over meet over 300 companies, and could 295 million course enrolments around the (1) Presented on an economic-interest basis. invest in fewer than 10. This highly world to facilitate world-class learning selective approach helps us target the next generation of outstanding “Ventures is about building the entrepreneurs and businesses. Key investment criteria To date, we have invested over Delivering world-class learning “Education is very attractive next wave of growth for the With Ventures, as with all our investments US$570m in five education businesses: experiences, the app merges videos group. We invest with a long-term to us because it’s vision in mind but make sure to across the group, we look for three BYJU’S, India’s leading personalised and interactive content to bring key things: learning platform for children in concepts to life. It also adapts to the important to people, they tether that vision to short- and spend a lot of their time medium-term operating realities grades 1 to 12; Udemy, the leading unique learning pace and style of around risks, competitive 1. A great idea addressing a big global marketplace for learning and each student. BYJU’S has more than and money on it, and we dynamics, future capital needs, societal need instruction; Brainly, the world’s largest 50 million registered users and an believe technology can and other considerations. Our 2. A strong tech angle social learning community; average daily engagement of make it much more BYJU’S Codecademy, an online coding 71 minutes per student. capital commitments are 3. Outstanding founders with the efficient – bringing better education platform where millions of commensurate with this balanced ambition and ability to grow assessment. Over time, as we people so far have learned to code; Building on its rapid growth and education to more people their businesses into global build our understanding and and SoloLearn, the world’s largest success, in 2019, BYJU’S became the over time.” expertise, the amounts invested leaders sponsor of the well-loved national 50m mobile community of code learners. Bob van Dijk may grow substantially. A good registered users Indian cricket team – a great way to Chief executive example of this approach is Food BYJU’S reach the company’s target audience Delivery, which was nurtured as We invested US$383m in BYJU’S in of Indian families across the country. Focusing on education part of Ventures before becoming December 2018. Our current stake is Alongside the sponsorship, BYJU’S Education is a key focus area for us. a standalone core segment 11.31%. BYJU’S learning app is the launched a campaign building on its There is a big demand around the last year.” 71 minutes leader in personalised learning mission to encourage every individual world to enable people to learn more Average daily engagement of programmes for school students in to Keep Learning. The campaign Martin Tschopp effectively and efficiently – whether COO, Ventures 71 minutes per student India. The company recently celebrates the feeling of togetherness that is helping schoolchildren learn or expanded its offerings to include that a sport such as cricket brings lifetime learning. Technology is playing grade 1 to 3 students, alongside its to Indians while encouraging a key part in meeting this fundamental established focus on grades 4 to 12, and inspiring people to never social need. Therefore, it is a natural and competitive exams such as JEE, stop learning. Cricket area for us to target. National Indian cricket team sponsor NEET, CAT, IAS, GRE and GMAT. 44 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Udemy Udemy provides free Udemy for In January 2019 we invested US$8m MEESHO Ventures continued We first backed Udemy in June and Business licences to 150 TLM students, for 20.81% of Quick Ride, the October 2016 and to date have giving them access to 3 500 online Focusing on India peer-to-peer car and bike-pooling invested US$115.8m in the company. courses on in-demand tech topics such India is an exciting area for us, given mobile app for daily commuting in Our current stake is 14.81%. Udemy as programming languages and web the vast opportunity for growth in the India. Quick Ride has over 3.4 million > is a global education marketplace development as well as important market across a number of segments. users who have completed over 2m for lifelong learners. The company business skills, such as writing an We have made recent investments in 35 million carpools. It is not only a Helped to create serves more than 295 million course effective résumé, giving and receiving education, logistics, ecommerce and smart way to make daily commutes more than 2 million entrepreneurs enrolments in 150 countries around the feedback, and managing workplace ride sharing in India and overall have easier for people across India, it is across India, the world, with 57 000 instructors teaching stress. Udemy has also donated invested more than US$500m in also having a positive environmental vast majority of in over 65 languages. Through Udemy laptops to TLM students, removing the country. impact – preventing more than whom are for Business, companies can access a another significant barrier to the 90 000 tonnes of C02 from entering homemakers and collection of business-relevant courses students continuing their learning and In education, BYJU’S is the leading the atmosphere. women on career via subscription as well as a simple keeping their skills updated. edtech player in the country and breaks UDEMY platform to host and distribute their Brainly is growing fast in India, the Helping a female student pay own content in one central place. Brainly company’s newest market. her way Currently, over 5 000 enterprise We have been backing Brainly since Female student Rajalakshmi knows her customers and 80% of Fortune 100 May 2016 and to date have invested In logistics, we invested US$30m parents struggled to pay for her companies use Udemy for Business to US$47.3m. Our current stake is 43.8%. in ElasticRun in October 2019 and university degree. She is now aspiring 295m build the skills of their employees. Brainly is the world’s largest social currently own a stake of 20.57%. to join the Indian Administrative Over 295 million course enrolments learning platform, serving more than ElasticRun is a tech-enabled offline Services and she is able to pay for all around the world Helping people in prison to 200 million students in over logistics network that leverages the classes, books and coaching with gain skills 35 countries. Students use Brainly to abundantly available kirana stores her earnings through Meesho. By Udemy is working with non-profit strengthen their skills across core for delivery and storage. ElasticRun paying her own way in this manner, programme The Last Mile (TLM) to subjects such as maths, history, enables small store owners to Rajalakshmi is proud not to have to 57 000 provide individuals in prisons with science and social studies. The leverage quiet times of the day to gain burden her parents. instructors teaching in over 65 languages training in technology and business platform allows them to connect with increased revenue by handling local skills. TLM graduates have left prison as their peers, subject matter experts, last-mile deliveries. software engineers and to date have a and professional educators to discuss 0% rate of reoffending, compared with subjects and seek answers to tricky We have invested US$81m in Meesho 55% of all formerly incarcerated people. questions. Brainly is emerging as one since August 2019 and currently hold 80% However, TLM graduates’ release of the most trusted online learning a 12.16% stake. An app-based 5 000+ enterprise customers and 80% dates and their completion of skills resources in India, with YoY growth of social-selling platform, Meesho acts of Fortune 100 companies use Udemy as a marketplace for suppliers and for Business for employee upskilling training don’t always coincide. Udemy 100% to 20 million monthly users in saw a clear opportunity to fill this gap November 2019. resellers. To date, it has helped to and help returning citizens continue create over 2 million entrepreneurs BRAINLY learning and become job ready. Going global with across India, by enabling individuals peer-to-peer learning to build their own small businesses. “We built Brainly on the assumption Homemakers and women on career that having 20 friends in your breaks make up the vast majority of classroom helping you learn is great, these entrepreneurs. Meesho provides 200m but being able to ask your questions to these entrepreneurs with products, Serving more than 200 million students logistics and payment tools to start in over 35 countries millions of other students around the world is even better,” says Michael and grow their businesses and also Borkowski, Brainly co-founder and invests heavily in training and CEO. “Right now, we are really excited mentoring them. The company about India – it’s our newest market, has also created online and growing really fast.” offline communities that allow women to connect, share and learn with their peers. Key investments in the year

Health Social Blockchain Mobility Logistics Commerce 45 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

The common objective is earlier, more Ventures continued accurate and valuable detection and Focusing on blockchain Focusing on Brazil anticipation – from spotting potential Blockchain is beginning to disrupt Through our investment in Movile, we fraud faster to cutting the time it takes and revolutionise a number of key are backing an exciting range of for a consumer to find what they want industries. To tap into and explore businesses across Brazil. Movile is a to buy. this opportunity, we invested in two leader in mobile marketplaces, with blockchain companies in 2019: the ambition to make the lives of a Looking ahead Immutable and DappRadar. billion people better through its We are continuing on the same Immutable is a company that builds applications. The company’s main tried-and-tested path to identify, invest video games with player-owned focus areas include ticketing (Sympla), in and build the next wave of growth assets. We invested US$6m in content and messaging (Wavy), fintech for the group. Looking ahead, we will Immutable in September 2019 for an (Zoop) and food (iFood) – see our identify trends, technologies, segments 11.11% stake. DappRadar is a leading food-delivery performance review on and geographies expected to record global platform for discovering and page 31. significant growth in the coming analysing blockchain-based decades and invest in the best decentralised applications (dapps). During the year, Sympla maintained opportunities we see. We are excited We invested US$1.8m in September exceptional growth of over 200%, by the prospects and look forward to 2019 for a 23.12% share of DappRadar. Wavy’s revenue also grew, and Zoop the investments. continued to scale. Movile uses AI and ML across its "The culture of the Movile portfolio for three key areas: fraud team is that we think big, detection and risk modelling; providing act fast and are always better recommendations for customers; striving for growth.” and reducing customer churn. Fabricio Bloisi CEO, iFood and co-founder of Movile

Going green with Dott Honor is a home-care company INVESTMENT IN BLOCKCHAIN “We have been a long- With our US$21m investment in Dott, and the founder of the Honor Care we are backing green mobility across Network, a pioneering US-wide term partner of Movile Europe. Dott makes it easy for people alliance of home-care providers. because of its ability to to share dockless electrical scooters The first company to bring scalable build transformative and bikes for short distance travel workforce management and US$6m mobile businesses in Latin across cities in Belgium, France, technology expertise together with Immutable America and beyond.” Germany, Italy and beyond. More the high-touch, personalised care of inner-city mobility; less inner-city local home-grown care agencies, Martin Tschopp pollution. Honor helps older adults live safely COO, Ventures and comfortably in their own homes US$1.8m by enabling reliable, transparent, DappRadar high-quality care. The company Focusing on care for the elderly partners with care agencies, providing We see care for the elderly as a very much more than just operations QUICK RIDE promising area of opportunity. We support and a tech platform. The wanted to back a company that was company’s app makes it easy for looking to bring tech at scale to caregivers to manage and deliver care. improve the industry for both caregivers and those who need care. Honor continues to go from strength 35m+ To this end, since 2018 we have 3.4 million+ users have completed to strength and doubled revenue YoY 35 million+ carpools, preventing more invested US$43.3m for a 16.47% stake to US$51m for 2019. than 90 000 tonnes of CO2 entering the in Honor. atmosphere 46 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Social and Tencent The opportunity internet platforms Rising incomes, increased connectivity and a growing middle class in a Connecting people in everyday population of 1.4 billion – the life though innovative opportunity in China for innovative technology social and internet platform leaders remains vast. There are over

(1) 904 million internet users in China as REVENUE (US$’m) of March 2020, over 99% of which 2020 17 189 were mobile users. The China internet 2019 14 757 industry exhibited healthy growth in 2019 – with online advertising, ecommerce, entertainment content subscription, smart retails and online TRADING PROFIT(1) (US$’m) payments all posting decent growth. 2020 4 699 2019 3 952 Tencent continues to build on its strengths in China Tencent continues to perform well PERFORMANCE HIGHLIGHTS in a highly competitive and dynamic Early in the development of our environment. Through its ecosystem internet strategy we invested in leading social and internet platforms of online services and the excellent in two of our key high-growth management team, it remains the markets, China and Russia. Tencent’s largest platform operator in China fundamentals remain strong with with nine of the top 20 mobile apps. increasing scale and higher operating China’s online games market TENCENT Despite the challenging economic and excellent growth prospects in China, Among the top 100 mobile apps in recovered in 2019 following the regulatory environment, Tencent efficiency. while Mail.ru remains the largest China, Tencent takes up 59% of all time internet group in Russia. resumption of in-game monetisation achieved robust advertising revenue spent online by users. licence approvals in December 2018. growth by progressively realising the Tencent has been working relentlessly (1) Presented on an economic-interest to help mitigate against the impacts of basis. Tencent extended its leadership in this long-term potential of Weixin Moments For the year ended 31 December market with the increasing popularity 9/20 and expanding its mobile ad network. Covid-19 in China. High traffic 2019, Tencent’s revenues of RMB377bn of Honour of King and Peacekeeper Tencent and its Tencent video subscriptions exceeded platforms such as Weixin and Tencent were up 21% YoY. Combined monthly Elite. It has also made significant the 100 million milestone in 2019. News are serving to update the public active users (MAU) of Weixin and ecosystem continue breakthroughs in self-developed to lead in China Music subscription growth accelerated with official news related to the WeChat increased 6% YoY to games for the international markets, with nine out of the as it benefited from the pay-for- pandemic. Tencent has provided the 1.16 billion. The Weixin Mini Program top 20 mobile apps public with a range of remote working with five of the top 10 international (2) streaming model. ecosystem became increasingly mobile games by daily active users by DAU . and access to remote healthcare vibrant, with an annual transaction (DAU) developed by Tencent and its Tencent operates the largest mobile services to help with navigating volume of over RMB800bn. subsidiaries in the fourth quarter of payment platform in China by active throughout the pandemic. Tencent QQ’s popularity among the younger 2019. PUBG Mobile is currently the users and transaction volumes, with Meeting has exceeded 10 million DAU generation continued to increase most popular international mobile over 800 million MAU and over within two months of its launch in late with enhanced chat and friend 59% game in terms of DAU and MAU in the Among the top 100 50 million monthly active merchants. December 2019, making it the recommendation features, as well as first quarter of 2020. Call of Duty: mobile apps in The average number of daily most-used dedicated video expanded entertainment use cases Mobile was 2019’s most downloaded China, Tencent and commercial payments transactions conferencing app in China. Tencent via Mini Programs. QQ smart devices new mobile game and won The its ecosystem takes exceeded 1 billion in the fourth quarter has also deepened the integration MAU, however, declined 7.5% YoY to Game Awards 2019’s Best Mobile up around 59% of of 2019 as Tencent deepened between Weixin and WeChat Work to 647 million as Tencent proactively all time spent online penetration among offline merchants. facilitate customer management and Game award. Supercell’s Brawl Stars by users in China(3). cleaned up spamming and bot was one of the best performing Tencent’s wealth management sales conversion. This has benefited accounts. original IP mobile titles in 2019. platform, LiCaiTong, increased its the millions of enterprises who used Tencent’s international revenue rose to aggregate customer assets over 50% WeChat Work to resume work in the 23% of its total online games revenue YoY, while its number of customers wake of the coronavirus outbreak. (2) According to QuestMobile, ranked by in the fourth quarter of 2019. more than doubled YoY as it Over 300 million Weixin users have average daily active users on iOS and expanded into the mass market. utilised Tencent Health Mini Program Android in December 2019. (3) Calculated with total time spent on iOS and In cloud, Tencent currently has over for real-time pandemic data, online Android in December 2019, according to 1 million paying customers and consultations and AI-powered QuestMobile. continues to outgrow peers with 47 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

For the year ended 31 December MAIL.RU Mail.ru’s online games segment also Social and internet platforms continued Mail.ru 2019, Mail.ru’s revenues grew 22% to continued to perform well, with solid The opportunity RUB87.1bn. This was driven primarily performance in the established titles, Russia is Europe’s largest internet by the growth in online advertising including Warface, Hustle Castle and market, with 95 million users, 61% of revenue and massive multiplayer m War Robots, and in new releases such which are mobile users. online games revenue, and new 31 as Lost Ark and American Dad! revenue streams in food delivery There are currently Apocalypse Soon. International and classifieds. 31 million daily revenues accounted for 68% of total active users across Mail.ru’s platforms online games revenue. Mail.ru is the largest internet group VKontakte (VK), the most popular in Russia mobile messaging and social Mail.ru is leveraging its leadership in Despite increasing competition across networking app in Russia, continued the social and communications all sectors, particularly from Facebook, to perform well. Total MAU reached segment to build social ecommerce Instagram and WhatsApp, Mail.ru 71.6 million, of which 65.2 million and online-to-offline (O2O) verticals remains the leading internet group in were mobile users. The VK Mini Apps that complement its user experience. Russia by users with 31 million DAUs platform expanded rapidly to a current A transformational AliExpress Russia across its platforms. offering of over 13 000 active Mini joint venture between Mail.ru, Alibaba, Apps, while platform MAU increased MegaFon and Russian Direct 14 times YoY. Mini Apps allow users Investment Fund was launched in to play games, shop, communicate, October 2019. This integrates Mail.ru’s order food, look for jobs and much crossborder ecommerce platform more, all within the VK ecosystem. Pandao with Alibaba’s AliExpress and Tmall services in Russia. In December 2019, Sberbank and Mail.ru completed the formation of a Russian O2O self-diagnosis services. Through Looking ahead services platform joint venture focusing Tencent Medipedia, users can access During the Covid-19 pandemic millions on food-tech and mobility. Mail.ru reliable and professional medical of users have cultivated new online contributed its food-delivery business information. Tencent has also provided habits in areas such as online working Delivery Club and 29.67% stake in medical AI imaging capabilities to and online schooling. Tencent expects Citymobil, Russia’s second-largest taxi assist the diagnosis of Covid-19. this to have a lasting impact and app, to the new entity. will accelerate China’s digital Tencent made notable progress on its transformation. Therefore, in addition In February, Mail.ru’s board of environmental, social and governance to meeting the immediate needs for directors approved the listing of global performance in 2019 in areas such as its products brought about by the depositary receipts (GDRs) of the technology education, rural poverty pandemic, it is proactively developing group on the Moscow exchange. alleviation, environmental conservation, its capabilities to anticipate and cultural inheritance and board diversity. respond to long-term demands as Looking ahead the country digitises. Mail.ru will continue to transition its strong and well-diversified product Tencent is listed on the stock portfolio and partnerships into a exchange of Hong Kong. Extensive broader internet ecosystem via further information is available on cross-selling and deeper integration. its website www.tencent.com. Mail.ru’s depository receipts are listed on the London Stock Exchange. Further information is available on its website www.corp.mail.ru. 48 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

PERFORMANCE IN 2020 Focusing on two flagship digital news brands Media24 Following the closure of our news Building a smaller, more aggregators and other smaller digital profitable South African media operations, we have focused on two business with a significant 28% flagship digital news brands: News24 investment in ecommerce Digital audience up 28% YoY and Netwerk24. This streamlined approach to our portfolio has delivered strong results. News24 REVENUE(1) (US$’m) is profitable for the first time in its 21 years – and Netwerk24’s paying 2020 272 21 years News24 profitable subscriptions grew by 32% YoY to close 2019 326 after 21 years on 60 000.

TRADING PROFIT/(LOSS)(1) (US$’m) News24 The most trusted digital Applying artificial intelligence and 2020 8 news brand in South Africa machine learning 2019 (14) (Reuters Institute) We make good use of AI and ML to optimise our businesses. Netwerk24, for example, uses multiple PERFORMANCE HIGHLIGHTS technologies and models focused on Media24 had a strong year. All issues such as customer subscription financial targets were met. The digital 32% Netwerk24 subscriptions up and churn prediction. In addition, audience of 2 million average daily 24.com brings together the power of unique browsers grew 28% YoY with 32% YoY News24 becoming profitable for the ad technology and analytics for more first time. Netwerk24 grew impactful behavioural profiling and subscriptions 32% YoY. Contract targeting. This includes profiling Logistics increased volumes 29%. VIA readers according to content grew profit fivefold. And at 77%, staff consumption and assigning them to engagement was at a record high. interest segments. These segments are (1) Presented on an economic-interest basis. integrated into the ad-serving solution to enhance targeting. “Journalism remains at the A strong year for awards heart of what we do and Our businesses had another strong year for awards, bringing home more throughout the year we than 60 local and international continued to transition journalism, commercial and publishing Media24 for a future that awards. is increasingly digital.” The numerous awards that our digital Ishmet Davidson CEO, Media24 The opportunity To drive performance, we have properties received at the annual The media industry remains reduced costs and also focused on “We are very proud Bookmarks Awards included a Black challenging, with downward pressures Increasing performance extracting maximum value from our that News24 is the Pixel for 24.com as joint best digital on revenues and growth in the print Total revenue contracted by 17% YoY print media portfolio, with a particular publisher, the fourth consecutive year media sector. However, there are with print media revenues declining emphasis on monetising our print most trusted digital it has received this honour. opportunities which may lead to by 9% YoY, slightly less than expected. media audiences by developing news brand in South We also took home awards at the delivering sustainable profitability Revenue from the growth portfolio diverse revenue streams, for example 2019 Standard Bank Sikuvile through investment in digital media, decreased by 31% YoY – led by through events, special interest Africa, according to Journalism Awards – including for careful cost management, targeted ecommerce and digital media, and publications and brand extensions. journalist of the year and best investment and diverse revenue that of book publishing by 7% YoY At the same time, we continue to invest the Reuters Institute investigative journalism; the Diageo SA projects which tap into our highly on the back of exceptional school in our growth businesses of digital at Oxford University.” Responsible Drinking Media Awards; engaged brand audiences. textbook orders in Botswana and media and ecommerce. 2019 The Folio: Eddie and Ozzie Ecommerce opportunities in South South Africa. Thanks to stringent cost Awards; South African Film and Africa are significant, with both management throughout the company, Television Awards; Vodacom Journalist levels of internet penetration and trading profit improved from a loss of of the Year Awards; and Agricultural ecommerce relatively low. US$14m in 2019 to a profit of US$8m Writers South Africa Awards. in 2020. 49 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Media24 won 11 awards at the learners; and Via Afrika supporting the Other social investment projects kind, rather than monetary donations, Media24 continued ATKV Mediaveertjies. Media24 also establishment of the WritePublishRead include sponsorship of all the major to charities and other community- received the South African Graduate self-publishing platform. arts festivals, including free based projects – rewarding the top Employers Association award for the marketing and advertising support; three projects every month with a cash best place to work in the media for The emphasis is on encouraging support for various educational donation to the winners’ charity of the fourth consecutive year. the business units to lead in social charities and projects; and free choice. Staff submitted 120 projects investments. At a corporate level, one media coverage and advertising for throughout the year, with around key project involves providing the registered non-governmental 1 600 staff members participating. life-skills development component of organisations (NGOs), charities and Environmental commitment the WeCode24 programme, which public-interest campaigns. Looking ahead In line with our commitment to gives learners at underserved schools We continue to build on our smaller, the environment, we monitor scope 1 in the Western Cape training in All staff members are entitled to more profitable media business and to and scope 2 greenhouse gas coding. The service provider for this three days’ paid leave per year capitalise on our ecommerce strengths emissions. This year our carbon project is RLabs, a recipient of supplier for charity work and their and opportunities. footprint increased by 23% to 12 326 development funding from Media24. contributions are acknowledged in tonnes of CO2e (2019: 10 008 tonnes performance reviews. One standout of CO2e). The increase was due to initiative was the launch of the a change in the Eskom electricity #1000ActsofKindness project, linked to emission factor from 0.96 to 1.04 and Volunteers24, at the beginning of April more accurate measurement of our 2019. This encourages assistance in carbon footprint. We seek to use technological innovation to create solutions that keep our impact on the environment to the minimum. We also perform regular risk assessments to #1000ACTSOFKINDNESS At the WAN-IFRA African Digital Media identify the operations where our Awards, 24.com won the award for the direct impact on the environment best native advertising/branded is most significant. content campaign; Lifestyle was runner-up in this category; News24 We have a number of energy- 1 600 won the best use of online video efficiency initiatives, including employees participate (including VR) category; and movement-activated and energy- in #1000ActsofKindness Netwerk24 was runner-up in the best efficient lighting, energy-efficient air community projects website or mobile service category. conditioning, power-factor corrections and load balancing. In addition, the #Guptaleaks team of News24, Daily Maverick and We also recycle to limit our impact amaBhungane, won the Global on the environment. For example, we Shining Light award of the Global recycle unsold newspapers and Investigative Journalism Network. And magazines, and we use responsible the overall winner of the 2019 FIPP service providers to dispose of Rising Stars Award was Mbali Soga, electronic waste. editor of TRUELOVE. NB Publishers won the prestigious Association of American Publishers’ Investing for positive social impact International Freedom to Publish We undertake a range of social Award for demonstrating courage investments and initiatives. These and fortitude in defending freedom of include policies to encourage speech for The President’s Keepers. procurement from small black-owned businesses; providing training to At the advertising industry’s the Association of Independent MOST Awards, our magazine and Publishers; supporting enterprise newspaper sales teams won the development through our contribution best media owner in their respective to Marvel Technologies for the categories, with Ads24 (newspapers) development of online learning also winning the marketing resources for teachers and services category. 50 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Financial summary

Financial review 2020 2019 US$’m US$’m US$2.9bn Group revenue, measured on an core headline earnings from Revenue (1) 22 136 18 990 economic-interest basis, was US$22.1bn, continuing operations (1) reflecting growth of 17% (23%) from Trading profit(1) 3 725 3 304 continuing operations. Dividend per N ordinary share (SA cents) US$ bn 580 715 4.8 (2021 reflects dividend proposed) solid net cash position

(1) Reported on an economic-interest basis, excluding discontinued operations.

markets and sustain our leading Frontier Car Group for US$320m and US$1.250bn 3.68% notes due in 2030. positions. Excluding the increased the contribution of certain subsidiaries, The purpose of this offering was to investments in Food Delivery and expanding our transactions business. raise proceeds to redeem the Payments and Fintech, as well as Ventures invested US$81m in Meesho US$1.0bn 6.00% notes due in July 2020. +16% acquisitions and disposals, Inc., a leading social commerce online The principal and interest accrued to Tencent revenue growth ecommerce trading losses reduced marketplace in India, continuing with the maturity date of these notes were by 24% or US$76m in local currency. our successful track record of repaid in February 2020. The group identifying Indian opportunities with has no debt maturities due until 2025. Core headline earnings from the potential to become large + % continuing operations were US$2.9bn businesses. We are also increasing Consolidated free cash outflow was 32 – down 5% (1%). Improving profitability our exposure to the edtech US$383m, compared to the prior-year overall revenue growth in ecommerce in Tencent and the more established (educational technology) businesses outflow of US$120m from continuing ecommerce businesses were partially by investing a further US$25m and operations (excluding the video- offset by increased taxation related to US$44m in our education associates entertainment segment). This change the Prosus investment. Through listing Brainly and Udemy respectively. In reflects increased investment in the +99% Prosus and the subsequent sale the Food Delivery business, we Food Delivery business, as well as Food Delivery revenue growth of additional shares, minority invested a further US$100m in our negative working-capital effects, offset shareholders with a 27.51% interest in associate Swiggy. by merchant cash timing differences of Prosus were introduced. This reduced US$28m, and transaction costs of the attributable share of Naspers At year-end, we had a solid net cash unbundling MultiChoice Group and Measured similarly, and including the shareholders in the Prosus core position of US$4.8bn, comprising listing Prosus, of around US$113m. stepped-up investment in Food headline earnings contribution for US$8.3bn of cash and cash Delivery, group trading profit grew 13% the year ended 31 March 2020 equivalents (including short-term cash Dividend income received from (17%) year on year (YoY) to US$3.7bn. by US$466m (2019: US$nil). investments), net of US$3.5bn of Tencent increased US$35m to Tencent grew revenues by a healthy interest-bearing debt (excluding US$377m. Cash extractions from our 16% (21%) YoY. Driven by Classifieds, Across the group, we invested capitalised lease liabilities). We also profitable Classifieds businesses Etail, and Payments and Fintech, US$1.3bn to expand our ecosystem have an undrawn US$2.5bn revolving continued to grow, increasing US$70m the ecommerce business posted and reach. Notably: through PayU, credit facility. to US$305m. Covid-19 may have a strong performance. an investment of US$66m in Wibmo short-term impact on that trajectory to expand our Indian footprint in Overall, we recorded net interest but, the positive trend is expected Overall, revenue growth in payment security, mobile payment income of US$16m for the year. In to return. ecommerce, adjusted for acquisitions solutions and processing services; an December 2019, Prosus established a and disposals, grew 32% in local investment of US$163m in PaySense US$6bn Global Medium Term Note We adopted the new accounting currency, a 6% acceleration YoY. This broadens our ecosystem in India as Program (the programme). In terms of standard IFRS 16 Leases on a was led by the Food Delivery segment we now start to offer consumer credit, this programme, Prosus may prospective basis. Accordingly, which grew orders by 102% and an investment of US$199m in Iyzico, periodically issue notes denominated comparative information has not revenues by 99% (105%), and strong a leading payment service provider in any currency, with a maximum been restated. Refer to note 2 of the growth in Classifieds, up 48% (37%). in Turkey and US$48m in Red Dot outstanding aggregate nominal consolidated summarised information Tencent’s profitability improved by 17% Payment (Red Dot), providing payment amount of US$6bn. The notes trade on for further details. (22%). Trading losses in ecommerce solutions in Singapore and expanding the Euronext Dublin stock exchange. rose to US$964m, reflecting our across Southeast Asia. In Classifieds, Under the programme, in January (1) Percentages in brackets represent growth in local currency, investment in Food Delivery to grow we acquired a controlling stake in 2020, we successfully issued excluding FX and M&A. 51 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Analysing and responding to different risks Managing risks and opportunities Our businesses are expected to apply a defined, structured approach to identifying, assessing, analysing and responding to risk and opportunities At heart, we are entrepreneurs. We seek to create sustainable value by building within tolerance levels set by the board. leading technological companies that enrich communities. Identify Assess Analyse Respond

Our success is driven by our culture Roles and responsibilities Our risk analysis focuses on the impact of risk on our We operate or in which people are empowered Risk management Management and the board are implement enhanced to promptly respond to business accountable for the choices and objectives without losing 1 control and monitoring opportunities while keeping risks decisions we make, how we execute sight of any opportunities Controls to measures that either that may arise. prevent or detect the within defined acceptable levels. these and for delivering a prevent and materialisation of a risk commensurate reward – ie value in detect risk at the earliest stage. We are committed to applying its broadest definition – within the For risks we are not principles of good governance, as well parameters of the risk profile the prepared to accept, as complying with laws and regulations board deems acceptable. we act to reduce as applicable in the territories in which Segmental risk Group risk Board our vulnerability. we operate, and as dictated by the committees committee As the group continues to evolve Depending on the listings requirements of relevant and invest in companies that importance of the risk in We take measures that securities exchanges. Our governance operate at different maturity levels, mitigate any material relation to tolerance levels, structures, policies and processes are risk tolerance levels are set top-down, consequences active management and, on a portfolio designed to accomplish this. and management of the business 2 of the risk takes various basis, we spread Internal segments is accountable to manage Spread risk uncorrelated risks. How we consider opportunities risk within these levels. forms and varies in extent. and govern risks audit In order to create stakeholder value The responsibility for managing risk in the broadest sense and in a lies with the owner of risk: in most sustainable manner, the six capitals cases operational management, transformation model is considered assisted by the finance function and, useful to analyse business opportunities This approach gives rise to various risks, These parameters include policies where considered useful in our which present themselves as either that govern our risk management businesses, specialised risk Where we can, and risks. We aim to achieve an overall 3 we explore ways net positive capitals transformation overconsumption of any of the six and compliance processes, and management and risk support to share or capitals (higher input than intended) relevant tolerance levels for individually functions. Share or transfer risk. Increasing risk through our strategy execution. transfer risk or underproduction (lower output identified risks. In order to operate In setting our strategy, we evaluate than intended). We may also identify within this parameter our businesses Group internal audit and risk support strategic opportunities and select opportunities for increased efficiency are required to apply a methodical assess the effectiveness of the system objectives that drive performance (for (lower input than anticipated) or more approach to governing risk and of risk management and internal example improved working capital effective production (higher output opportunity. control and may provide assistance efficiency) directly or strengthen our than anticipated) in any of the capitals and guidance to the business. We run adequate insurance programmes business (for example investing in and therefore, exceed against our Key risks are evaluated by to mitigate the risk people development) – or both. We original objectives. segmental risk committees and At least semi-annually, our external of sudden losses select those objectives that we consider are reported to the board. The risk auditor provides assurance over the 4 caused by the The parameters to create value for our committee assists the board to reliability of the financial information materialisation to be the greatest drivers of value for Mitigate risk of insurable risk. our stakeholders. We achieve these stakeholders are set and monitored by ensure that risks and opportunities that we publish. objectives by transforming capitals as our board of directors and supporting are governed as intended and defined by the six capitals model. governance committees (refer to achieve desired outcomes. governance structure on page 79). Wherever we find a risk outside acceptable levels, we consider ways to avoid the risk 5 altogether, for Exit strategy example by entering into an exit strategy. 52 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Managing risks and opportunities continued Key areas of focus in the year from an opportunity and risk perspective Monitoring of key risks remains in line with the overall risk For this purpose, the businesses, The board, assisted by its committees appetite and, for individual key risks assisted by the various support as applicable, periodically reviews at the consolidated level, stated risk functions, submit regular reports and monitors the risk profile of the tolerance levels. The key risks that are on the key risks and any group and any developments thereto. considered to determine the overall changes in the business. This is to determine that the profile profile are linked to the six capitals.

3. Sustainability Objective-driven dynamic approach • Enhanced integration of sustainability aspects into our strategy setting, execution and reporting. • We continue to develop our integrated annual report to improve 1. During the year we have pursued non-financial information disclosure. opportunities and invested in: • Enhanced data governance and Selected ensuring compliance with data- objectives • Growing and strengthening our privacy regulation around the world. businesses in the various segments, • We have strengthened our legal through further financing of organic compliance teams and processes. growth and acquisitions. • Reduce our carbon footprint, by • Product and technology zero-rating the group travel emissions development, supported by by way of partnering with climate- development of ML and AI. neutral organisations. • Business resilience through investing Potential in infrastructure and cloud solutions and enhancement of cybersecurity. Business Strategy Sustainable • Talent management. opportunities delivery value

Capitals Performance transformation

4. Responding to the global Covid-19 pandemic outbreak • We deemed Covid-19 a global crisis in early February 2020 and have 2. Listing of Prosus been implementing protocols globally • We have successfully listed our and locally since then (refer to international assets on Euronext pages 7 and 8). • Our work includes scenario planning Our six capitals Amsterdam thereby creating Europe’s largest internet company. for how Covid-19 could evolve, the impact this could have on the Financial Human Manufactured Risk impact countries we live and work in and the Improvement opportunity businesses we operate and invest in. Social and We are assessing key business risks Intellectual Natural relationship across our core segments and putting in place mitigation plans. 53 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Monitoring of key risks

Capital We aim to Key risks Measures to respond to opportunities and manage risk Changes to risk to be considered

Financial capital

At heart, we are entrepreneurs. Within the • Focus on investments in business models and • Global and political market disruptions. • We do not tolerate risk levels that impose an immediate threat to the group as a going Global market disruptions, mainly as a parameters set by the board, we continuously technologies that hold promise for future • Insufficient funding to realise our ambitions. concern. We tolerate currency translation risk as it is uncontrollable and, while short- and result of the global Covid-19 pandemic pursue growth, and set ourselves ambitious growth and have potential to scale globally. • Unexpected changes in the value of our assets. mid-term movements may be volatile, on the long run they are expected to be less outbreak on top of heightened political goals that create sustainable value for our • Benefit the countries we operate in by impactful. and international trade tensions may stakeholders. We actively seek opportunities • Currency exchange fluctuations as well as navigating applicable impact on our ability to grow our creating business for local suppliers, exchange controls. • We promote the operation of an effective internal control environment (no major failings to improve and strive to preserve the value employing people and giving governments have occurred to the knowledge of the directors) in our businesses and the audit businesses and deliver returns for our created within our existing businesses. their dues via taxes and levies. • Failing to compete effectively. committee oversees that the overall assurance sourced from various providers is capital providers. • Manage our assets and liabilities with regard • Credit and counterparty risk. sufficient to base upon the board’s assessment on key risks in the overall risk profile. We to the interests of our investors and other • Fraud-related crimes and theft. respond swiftly to any cases of fraud displaying a zero-tolerance policy and in stakeholders and in accordance with • Financial misstatement and/or failure to accurately disclose in our accordance with local laws. board-approved risk appetite. public reports. • We develop and use AI, inter alia, to counter fraud and platform abuse. • Comply with relevant company law and • Most of our businesses are subject to extensive laws and regulations: • We have strong inhouse teams to monitor global and social/political developments, securities exchanges regulations. legal or regulatory developments, including changes in tax laws, including legal, tax and regulatory, and adjust quickly. We diversify markets in which we • Report accurately on our financial position may have an adverse impact on our businesses. A number of new invest. and performance in accordance with laws and regulations around consumer protection and privacy have • We allocate significant resources to analyse market developments and invest in applicable accounting standards. been passed globally. early-stage opportunities to stay ahead. Development cost can generally be terminated • Avoid obsolescence of products and at relatively short notice. services. • We act early to ensure we have the funds and resources to realise our ambitions over • Minimise our investments in working capital. the longer term and we manage the balance sheet conservatively. We currently have a large cash position and spread the maturity of debt facilities. We also ensure the group has unutilised debt capacity to tide it over in times of difficulty. • We invest funds and manage our cash and currencies in accordance with our group treasury policy which, inter alia, sets minimum standards to mitigate risk of counterparty default. • In exercising our business strategy, we perform regular country and business reviews. We periodically perform and report on impairment of our investments. • We operate a legal compliance programme, focusing, inter alia, on bribery and corruption as well as anti-money-laundering and particular restrictions specifically. We implement specific controls, such as diligent know-your-customer (KYC) processes and fraud detection. • Leading advisers are used for reviewing markets or businesses, including due diligence processes, and legal and/or compliance-related risks are managed in consultation with external lawyers and specialist advisers within specific legal jurisdictions. • We perform regular reviews of tax compliance and specific risk areas and apply responsible corporate citizenship as taxpayers while operating within tax control frameworks. • We execute on a communication strategy for our shareholders and other stakeholders. Our internal relations team and our communications department are closely involved in every step of the process. Published segmental results enable the investment community to form an opinion of the valuation of the individual businesses in the group. • We comply with IFRS accounting standards. • In our payments segment, we operate rigid controls and escalation processes in relation to: ―― assessing and approving merchant applications ―― monitoring high-risk merchants, and ―― chargebacks. • The audit committee and PwC rigorously apply regulations around audit independence. Regular reviews of the effectiveness of auditors and their independence are performed. • Both at the group level and at the individual business level, we operate adequate insurance programmes for various classes of risk and place cover with reputable underwriters. 54 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Monitoring of key risks continued

Capital We aim to Key risks Measures to respond to opportunities and manage risk Changes to risk to be considered

Human capital

We acknowledge that our employees’ • Attract and retain high-calibre individuals to • Human rights violation, including unfair treatment and remuneration, or • Our legal compliance programme ensures compliance with applicable OHS, labour, Increasing as a result of shortages of competencies, capabilities and experience, execute on strategy and build sustainable engaging in practices that may adversely affect humans in any of the economic empowerment, transformation and diversity laws. Human resources policies necessary talent and the effect of the as well as their drive and engagement, is key businesses. six capitals. and procedures to address talent attraction, management and retention, development, global Covid-19 pandemic outbreak. Food to our success. • Back entrepreneurs and local teams by • Inability of existing employees to adapt promptly to changes in market succession planning, fair and responsible remuneration, working conditions, grievance delivery is enabled by a high number of providing them with resources to accelerate and innovation and adapt business strategies accordingly. procedures and diversity, inter alia, to protect employees from human rights violation. We drivers, who for the largest part are growth. • Failing to attract and retain sufficient talent to execute strategy, monitor labour legislation in the various countries we operate in and ensure we comply. independent contractors but nevertheless • Provide our employees with focused career especially scarce talent in technology development and data science. Our governance guidelines and sustainability programmes aim to ensure that we do not require attention from various points of development and training. indirectly impact on UN human rights principles. view from human resources, OHS and fair • Non-compliance with applicable occupational health and safety treatment. • Foster a safe and healthy working environment (OHS), and labour and economic empowerment laws. Our • Our food-delivery businesses apply specific procedures to the hiring and monitoring of where people feel cared for, heard and ecommerce businesses are exposed to increased OHS risk with independent contractors. supported in their ambitions. management of warehouse facilities. • Strategies to develop employees and attract talent to meet the business’s objectives, • Reinforce the leadership pipeline and • Outbreaks of transmittable diseases may pose real risks to the health including learning and development initiatives (through MyAcademy that is on demand accelerate the growth of top talent. of our staff, especially with our global businesses and employees online and classroom-based), training, and employee wellness initiatives across the travelling regularly between territories. The Covid-19 outbreak has group. A global talent function focuses on attracting, retaining, developing and engaging • Support the ongoing development and growth people with key skills and rewarding exceptional performance. of our businesses and equip our people with affected most of our businesses globally. Working from home for new skills for tomorrow. extended periods due to government lockdown measures may affect • We do not accept material breaches of the applicable OHS laws which may result in the productivity and wellbeing of our employees. injury or death. Business units are required to sign off annually on OHS compliance and • Develop core business skills in the segments any material incident must be reported to the risk committee, and corrective action taken we invest in. to prevent future occurrences. • Be fair and responsible in our remuneration • OHS audits conducted in some countries. practices and have a pay-for-performance remuneration strategy. • Close monitoring of travel advice by authorities and statements issued by WHO. • Encourage diversity in our teams and thinking • We have low tolerance for vacancies in key positions (for longer periods of time). and build inclusive workplaces. Our • We prepare and table succession plans annually to the human resources and remuneration employment philosophy is founded on committee. promoting equality and preventing unfair • We benchmark our remuneration practices and structure them to attract and retain critical discrimination. talent necessary to achieve our objectives. These practices are overseen by the human • Be compliant with relevant labour laws in the resources and remuneration committee. countries where we operate.

Manufactured capital

Manufactured capital is key to our services and • Ensure that office buildings, warehouses, retail • Natural or human-induced disaster, and political risk. • The group’s subsidiaries are required to act in line with the group’s good governance Moving our IT operations to the cloud operations. Across the group, manufactured outlets, vehicles and equipment are efficient, • Most of our businesses own either buildings (eg, offices, outlets, guidelines, which, inter alia, aim to ensure effective management of IT- (and cyber-) makes us asset lighter and more resilient capital may include: well maintained and adequately insured warehouses) and/or leasehold improvements and various types of (IT) related risks across the group. This includes risks of data/information security breach and against cyber-attacks but increases our • Office, service centre and warehouse buildings against relevant risks. equipment, office furniture, vehicles and other. Failure to operate these business interruption, for instance by implementing and testing disaster recovery plans as dependency on outsourced services and equipment. • Operate a secure and resilient technological assets efficiently and/or to maintain these adequately could result in part of their overall business continuity planning. suppliers. • Information and technology infrastructure and infrastructure. service interruption or write-offs and affect profitability. Furthermore, • In territories where continuous power supply is a risk (as in South Africa), our businesses equipment. • Manage our outsource partners to deliver on such assets are subject to potential theft and damage, which could have contingency backup in the form of generators in place. Cybercrime remains rampant and requires significant focus and investment to protect • Distribution networks (such as customer service agreed service levels. result in losses should they not be appropriately insured. • Robust business planning, including working capital. • Failure of software, systems or infrastructure (eg, due to technical our data and manage cybersecurity risks. centres, retail outlets and courier services). • Avoid obsolescence of products and services • We maintain adequate short-term insurance cover for our assets and consequential loss The global Covid-19 pandemic outbreak • Public infrastructure such as roads for held for sale by procurement and inventory failures or cyber-attacks) could disrupt continuous services to our of income due to business interruption. customers, affecting satisfaction. may impact on the net realisable value of delivering goods. management. • Asset maintenance programmes. components of the inventory held by our • Vehicles. • Minimise our investments in working capital. • Data fraud or theft (hacks). • Contracting with and regular performance evaluations of our service providers. businesses. • Inventory/stock. • Our South African businesses in particular may suffer from power • We maintain adequate service-level agreements with outsourcing parties. shortages. • We run SAP in most of our B2C businesses and invest in other support systems to optimise • Some of our businesses, especially in the B2C segment, carry our inventory planning and management and to ensure efficient warehouse operations. significant inventory. Our Classifieds segment engages in car trading and may hold meaningful investments in cars for sale at points in time. • Our warehouse operations and procedures include rigid access control, separate storage Such inventory is subject to a wide range of risks, such as of high-value goods, camera observation, etc. obsolescence, shrinkage and theft (including robbery of warehouse premises) and damage. 55 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Monitoring of key risks continued

Capital We aim to Key risks Measures to respond to opportunities and manage risk Changes to risk to be considered

Intellectual capital

Intellectual capital (knowledge-based • Use intellectual capital to drive • Ineffective response, including insufficient innovation, to meet our • Developing strategically important IP assets, as well as attracting, managing and Increasing as we need to increase our intangibles) includes intellectual property customer-focused development and customers’ changing demands and consumption patterns. developing talent, encouraging innovation, and managing performance to meet investment in data-driven technologies (IP) such as patents, copyrights, trademarks, innovation strategies. • Improper use and/or inadequate protection of IP, customer and targets. and run heightened risk of technology domain names, confidential information, as • Adequately protect our intellectual capital privacy-sensitive data and other confidential information may • Developing relationships to grow intellectual capital, for example, relationships with obsolescence or falling short in building well as institutional knowledge, systems, and not infringe on rights of others. cause us to lose market share, revenue and opportunities, whereas universities, think tanks and others. AI/ML solutions towards our service and procedures and culture. • Produce and acquire valuable content for loss of privacy-sensitive data could give rise to regulatory action, • Research and development spend strategies linked to value creation. We hold product offering. consumption by our customers through including levying of fines. regular strategy and operations reviews, also to assess product and service our various platforms. • Reputational damage or liability due to infringement, theft or development. • Cultivate positive, innovative, ethical misuse of IP and rights of third parties by any of our businesses. • Protect IP rights against infringement through effective cybersecurity measures cultures within the group. • Our systems and the data that they store are subject to various IT guided by our global security policy. We prioritise cybersecurity and the continued • Build intellectual capital through security threats, which target sensitive information, integrity and development and enhancement of our controls, processes and practices designed continuous investment in our people and continuity of our services and/or reputation of our businesses. to protect our systems and networks from attack, damage or unauthorised access. knowledge-sharing programmes • Support provided by group head of IP. Group guidelines and monitoring in place. throughout the group. • Compliance with privacy-protection laws and, where applicable, Payment Card Industry – Digital Security Standards, forms part of management’s responsibilities. • Internal audit and risk support have a cyber team that actively engages with the cybersecurity experts across the group. IARS focuses on security as part of the design and build process, as well as on the security of live platforms through IT control reviews, IT risk assessments, penetration testing and ethical hacking. • Our companies adopt agile development methods.

Social and relationship capital

We acknowledge that we are required to act • Build trust and maintain the businesses’ • Unethical behaviour in breach of our code of business ethics and • Management is committed to setting the right tone at the top and we communicate No change. in line with our values and code of business licences to operate, our brands and conduct, including bribery and corruption and unfair treatment of our values as per our code of business ethics and conduct. ethics and conduct, and carefully manage reputation. stakeholders. • We appoint leaders to develop and oversee the rollout of communications on both internal and a wide array of external • Cultivate an ethical culture. • Loss of consumer trust, for example failing to deliver on our service company culture. This includes a company’s purpose, mission, values and beliefs. stakeholder relationships. • Engage with our stakeholders and promise, data-security breaches, non-compliance and inferior • We run ethics awareness initiatives, ensuring ethical standards for services and respond to legitimate and reasonable product offerings. products provided. issues raised. • A breach in customer, employee or business-partner sensitive data • Anti-bribery and anti-corruption training and programmes as part of the legal • Meet the requirements of regulatory resulting in identity theft, discrimination or possible financial losses. compliance programme. and financial authorities (including • Non-compliance with laws and regulations in the countries where • We make our OpenLine whistleblower facility available for employees to report securities exchanges) and participate we operate, specifically, but not limited to company law, data suspected unethical behaviour. in the development of policies privacy, anti-bribery and anti-corruption, taxes and duties, licence • Measuring and monitoring strength of customer relationships (such as Net Promoter beneficial to societies and markets conditions, consumer protection, anti-money-laundering, and Score) and strategy to ensure customer satisfaction. in which we operate. international sanctions. • The group actively manages stakeholder relationships and responds to legitimate • Comply with relevant company and • Non-compliance with the rules of the Euronext Amsterdam, JSE, LSE and reasonable issues raised by major stakeholders. We strive to provide increasing other applicable laws. or Euronext Dublin could result in the suspension of Prosus and transparency, primarily through our integrated annual report and various stakeholder • Sustain corporate social initiatives Naspers shares and bonds from trading. meetings, presentations and leadership interviews throughout the year. focused, targeted and linked to • Negative impact as a result of our business operations or products • We continue to strengthen our regulatory teams, increase engagement with business strategy. in societies in which we operate. regulators and invest in corporate affairs, government relations and communication • Infectious diseases affecting societies in which we operate. while operating a robust legal compliance programme. • Adopting measures to protect customers (including frameworks and policies in place, and training and awareness) and ensuring customer privacy and data security are managed and monitored. This includes measures to protect against cyberthreats. • Data privacy is managed by our data-privacy team and measures are taken to protect all sensitive data, including compliance with laws per territory. We further ensure our platforms conform to data-privacy requirements. 56 Naspers integrated annual report 2020 Group overview Performance review Sustainability review Governance Financial statements Further information

Monitoring of key risks continued

Capital We aim to Key risks Measures to respond to opportunities and manage risk Changes to risk to be considered

Social and relationship capital – continued

• Corporate social investment programmes that benefit the community and the business, such as providing learning and internship opportunities to students, contributing to the community and improving employment in the country, but also contributing to the human, intellectual and financial capitals of the business in the long term. We have a number of social responsibility and social impact projects that aim to uplift communities in which we operate – these projects are based on the needs identified per territory. An example is the Naspers Labs in South Africa. • The company secretary manages compliance with stock exchanges’ rules where Naspers securities are traded, including required submissions of reports and updates. • The Naspers social, ethics and sustainability committee monitors compliance with BBBEE and similar industry charters in place for the South African businesses as well as other matters stipulated in the South African Companies Act. • The group’s tax department proactively engages with tax authorities and has developed a tax control framework to enhance transparency and respond to increased scrutiny from tax authorities. • We apply best practice in our recruitment and selection processes. • We periodically survey employee engagement and take corrective action where needed. • Selection, onboarding and evaluation of drivers and running safety (awareness) programmes. • Our businesses increasingly put insurance programmes in place to cover relevant drivers’ liabilities. The insurance markets, however, are still in development in this respect. • Management of our businesses run crisis simulation exercises from time to time. • Internal audit periodically assesses the risk culture of selected entities. Results are indicative of the company’s control environment and are discussed with segment and local management. • The company accepts that infectious diseases are outside of our immediate control, and as a group we help to ease the impact on societies by way of financial assistance in some countries (refer to pages 7 and 8 for further information).

Natural capital

We acknowledge that we are required to act • Comply with laws and regulations that • Increased natural hazard costs, security costs or resource costs. • We comply with laws and regulations that relate to the environment. Zero-rating of FY20 travel emissions. in an environmentally responsible way. As a relate to the environment. Increased compliance costs, new regulations or licence fees. • We are a service company and prefer to invest in platform businesses, and as a We currently report scope 1 and scope technology investor, the group has a relatively • To be useful to the communities we • Changing customer, supplier and employee values or preferences result, our business models have an inherently lower natural capital requirement. 2 emissions. We are in the process of low impact on natural resources. Our serve, acknowledging that may lead to reduced market share and decreased loyalty. Some contribute to reusing of products instead of buying new (eg Classifieds). prioritising the sustainability matters, businesses consider the extent to which natural environmentally responsible • Our businesses as well as local communities where we operate • Our diverse businesses across the group adopt appropriate environmentally including environmental matters, that capital may significantly affect current or future behaviour forms part of that. may face reduced access to, or availability of, natural capital (eg sustainable practices minimising the impact on the environment, for example are material to the group and to the operations; trigger legal or regulatory • Take advantage of opportunities to water) or related ecosystem services. energy-saving, water-saving and recycling initiatives. individual businesses. Refer to progress processes or fees, such as emission fees; have reduce our environmental footprint. made against our sustainability plan in a financial impact, eg on insurance conditions; • Worldwide extreme weather changes. • Our sustainability programme initiatives include partnering with relevant climate the focusing on sustainability section and affect company image or relationships • Invest in high-growth markets and • Rise in consumption of electricity due to increased use of groups to counter our effects, an example being zero-rating our travel carbon on page 58. This will inform our action with stakeholders, eg changing customer and credible sustainable products that technology, leading to increased carbon emission footprint, emissions by financing climate initiatives in emerging economies such as forestation plans and focus areas. We will report employee preferences. Each business’s may offer new revenue streams. adversely impacting climate change. and renewable-energy sources. on the outcome of this process in next responses to mitigate key risks and pursue • We continuously seek to address ESG issues in the countries where they are most year’s report. opportunities will differ depending on the needed, for example, through our Greenseat partnership we contribute to projects unique risks and opportunities in its operating based in India, South Africa and Brazil. environments. • Reducing operational costs by minimising consumption and impact. • Reducing environmental compliance/regulatory fees and charges.