Performance Review Sustainability Review Governance Financial Statements Further Information
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Group overview Performance review Sustainability review Governance Financial statements Further information Performance review Contents 31 Our performance 32 Classifieds 36 Food Delivery 42 Payments and Fintech 46 Etail 52 Ventures 57 Naspers Foundry 58 Social and Internet Platforms 60 Media 62 Financial review 63 Managing risks and opportunities 65 Monitoring of key risks Naspers integrated annual report 2021 30 Group overview Performance review Sustainability review Governance Financial statements Further information We are building leading global businesses across our core segments of Classifieds, Our performance Food Delivery, Payments and Fintech, and Etail; and we are 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, taking advantage of new opportunities and, as ever, focusing on improving everyday life for millions of people around the world. Highlights of the year Ecommerce Classifieds Food Delivery Payments and Etail Ventures Social and Internet Media We made considerable Our core food delivery Fintech eMAG Throughout the year, we Platforms Media24 is Africa’s leading progress in FY21, businesses continued to Payments and Fintech eMAG continued to continued to focus on our Early in the development of print and digital media strengthening our strategic grow throughout the year. reached a new level, driven strengthen its position as core areas of investment, our internet strategy we group with interests in and financial position. iFood performed strongly, by the pandemic-fuelled a leading etailer in Central notably Edtech, which invested in leading social digital media and services, Although the pandemic growing gross merchandise acceleration in the adoption and Eastern Europe – became a new core and internet platforms in newspapers, magazines, affected our business at value (GMV) by 148% and and use of digital payments growing revenues by 54% (in segment for the group two of our key high-growth ecommerce, book the start of the year, we revenue 205% year on year across our core markets. local currency, excluding on 1 April 2021. In all, markets, China and Russia. publishing and media innovated to continue (in local currency, excluding In Latin America, volumes M&A) and becoming we invested US$163m in Tencent’s fundamentals logistics. It publishes several enabling trade, and ending M&A), strengthening its grew 69% year on year. profitable in terms of trading 18 transactions, including remain strong with excellent magazines and newspapers the year stronger than position in Brazil. Poland and Romania were profit for the first time. investments in Edtech and growth prospects in China, and reaches 1.5 million expected on both revenue in India, another key focus average daily unique also very strong. In our core Takealot group while Mail.ru continues to and trading profit. Delivery Hero also had market of India, volumes area for Ventures. be the largest internet browsers – up 45% year on a strong year, reporting The Takealot group had year, generating 12.6 million grew 42% year on year (in a very strong year, group in Russia. €12.4bn in GMV and local currency, excluding average daily page views, €2 472m gross revenue accelerating growth in all its M&A). across its digital platforms. from continuing operations businesses. Takealot group for its year ended revenue increased by 65% 31 December 2020. year on year (in local currency, excluding M&A) and negative trading Iyzico margin was 0.1%. GMV grew 84% year on year (in local currency, excluding M&A). Takealot.com had its first Get a career you can be proud of. profitable year. Read more on page 32 Read more on page 36 Read more on page 42 Read more on page 46 Read more on page 52 Read more on page 58 Read more on page 60 Naspers integrated annual report 2021 31 Group overview Performance review Sustainability review Governance Financial statements Further information The opportunity Shaping the future CAR AND REAL ESTATE REPRESENT KEY CATEGORIES IN Classifieds is a highly dynamic environment. Trends This year we sharpened OLX Group’s purpose to REVENUE (%) Classifieds are accelerating, offering many opportunities and better reflect our objectives and contribution to the challenges. We see four key trends and are world: We shape the future of trade to unlock Shaping the future of trade aligning OLX Group to capitalise on these. Firstly, the hidden value in everything. to unlock the hidden value user needs are evolving. Users are looking for more trust, more safety, more convenience, more In a future dominated by digital, we will create in everything. help. They are expecting, and getting, seamless customer journeys that are simple and seamless. online-to-offline experiences, with more support This will facilitate trade in many ways, thereby along the transaction chain. Secondly, the helping consumers unlock value in the items they 1 REVENUE (US$’m) competitive landscape is changing, with global own, the businesses they run, and the means they 2021 1 609 digital players entering classifieds trade. Thirdly, have to improve their lives. This means goods will artificial intelligence (AI) is becoming increasingly have multiple lives, extending the value of the 2020 1 299 world’s limited resources. critical. AI can radically improve user experiences, Cars 55% automate or optimise tasks and enable new Real estate 16% TRADING PROFIT1 (US$’m) In addition, we will unlock value in our people by product features – it is truly transformative. Fourthly, Goods 9% sustainability is at the forefront now. Many believe investing in their development. We will also unlock 2021 15 enterprise value for our shareholders by being Jobs and services 11% that current global consumption patterns are Advertising and other 9% 2020 44 unsustainable, with natural resources being resourceful and identifying opportunities to solve depleted and most items only used once. We even more customer problems. agree that the world needs a smarter model of Performance highlights consumption, where products and materials are Accelerating our growth OLX GROUP We made considerable progress during the used more effectively. This requires changing In the year we accelerated our move into the year and strengthened our strategic and consumer behaviour and supporting circular transaction space, and developed differentiated financial position. The Covid-19 pandemic business models and products. At OLX Group, we propositions for consumers, supporting our affected our business at the start of the year. want to lead this change, to improve everyday life customers along their transaction journey. 322m 58m monthly active users net new listings However, we innovated to continue enabling for people in a responsible, sustainable way. Most car dealers and agents were facing little to no trade and ended the year with strong Present in momentum, with both revenue and trading demand and inspection centres closed across Asia profit exceeding initial expectations. and Latin America due to the Covid-19 pandemic. We innovated to continue enabling trade, and came m 1 Presented on an economic-interest basis. 116 out of the year stronger than expected. monthly active app users 41 markets, leading ‘In a year dominated by the Covid-19 pandemic and positions in 24 countries characterised by an accelerating shift to digital, the power of our purpose came to the fore.’ Users are requesting more support along the chain 4.1m Lydia Paterson paying listers CFO, Classifieds SOURCE AND LIST SEARCH AND CONNECT PAY AND TRANSACT SHIP AND RECEIVE OWN AND MAINTAIN Traditional classifieds Emerging user needs Partner Service the Facilitate Support with sellers: transaction: the transfer: maintenance • Tools and client • Inspections • Delivery • Parts and repairs relationship managers • Financing • Support title transfer • Moving and furnishing (CRMs) and insurance • Warrantees • Ecosystem • Instant cash offering and returns • 828 relations Naspers integrated annual report 2021 32 Group overview Performance review Sustainability review Governance Financial statements Further information Lockdown restrictions accelerated the digitisation Classifieds continued journey, with consumers completing more The multiple layers of our ecosystems transaction steps online, and professionals using tools to facilitate more digital interactions. Digital car Offline inspections OLX GROUP Focusing on the customer experience buying journey Pay-and-ship To further help our customers in these Physical transactions of Car history reports unprecedented times, we focused even more Verticals intensely on the customer experience. We want to Transactional Financing > bring new experiences to customers to make it marketplace Goods Motors 100 000 easier, more intuitive and convenient to derive as vehicles in a year much as possible from their most valuable assets, C2C trade such as their car or their home. Price transparency For example, pandemic restrictions aside, we are Jobs and Real > making it possible for people to drive their car to services estate 520 000 one of our inspection centres, get a fair value monthly pay-and-ship transactions Applicant tracking in Europe assessment on the spot and, within 30 minutes, Financing receive a cash offer for their car. Super quick, safe Wide network of and convenient – this is transforming the way cars CRM services have traditionally been traded. In response to pandemic lockdowns, we developed a remote inspection process. From the comfort and