Naspers (NPN) investor relations material

Capital allocation strategy

• Focus on building and crystallizing NAV per share through active portfolio management and capital allocation decisions.

• Approach includes new investments, managing the existing portfolio, re-evaluating and reshaping assets, and managing share count to enhance shareholder returns.

• Capital is allocated to drive the highest risk-adjusted returns, balancing investment opportunities and share buybacks based on market conditions and NAV discount.

Portfolio performance and market environment

• Valuations across tech segments have declined significantly, impacting returns, with sectors like media and food seeing drops of over 60%.

• Historical capital allocation shows multiples of invested capital ranging from 1.0x to 3.4x across segments, with exited assets achieving up to 2.9x.

• Exits have been affected by the environment, but significant cash inflows have been realized, especially from Tencent-related transactions.

Share buyback impact

• Open-ended buyback program has increased NAV per share by 3% in five months and could reach 6.9% annualized accretion if continued.

• Buybacks compound NAV per share accretion over multiple years, enhancing IRRs and increasing per share exposure to Tencent.

• Buyback strategy leverages market discounts to NAV, magnifying returns for shareholders.