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Change in presentation currency - additional conversion information for analysts

Change in presentation currency - additional conversion information for analysts Naspers Limited today announced that it will change the presentation currency in its consolidated financial statements from the South African rand (ZAR) to the United States dollar (USD) with effect from the financial year ended on 31 March 2016.

Download additional conversion information for analysts:
Investor and Analyst booklet
Market Release

Over the past 100 years, the group has evolved from a single-country newspaper business and early investor in pay television to a video-entertainment leader and global internet and ecommerce group with operations in over 130 countries. Today, more than 70% of revenue measured on an economic interest basis (which includes the group’s proportionate share of the revenue of associates and joint ventures) is sourced from outside South Africa.

Coupled with the evolution of the business, the group’s shareholder base is now largely comprised of foreign investors to whom financial reporting in ZAR is of limited relevance. Internally, the board also bases its performance evaluation and many investment decisions on USD financial information.

The board therefore believes that USD financial reporting provides more relevant presentation of the group’s financial position, funding and treasury functions, financial performance and its cash flows. It should be noted that the functional currencies of the group’s underlying businesses – functional currencies referring to the currencies of the primary economic environments in which underlying businesses operate – remain unchanged and that foreign exchange exposures will therefore be unaffected by the change, albeit that the effects of such exposures will be presented in USD.

Dividends will continue to be declared in ZAR, with the relevant exchange rate announced at the time of the dividend payment.

To assist investors in understanding the change, the group has provided summarised, restated USD financial information for the financial years ended 31 March 2015 and 2014 as well as for the six-month interim periods ended 30 September 2015 and 2014. The summarised, restated information presented, has been prepared in terms of International Financial Reporting Standards (IFRS) and will form the basis of the comparative financial information expected to be included in the consolidated annual financial statements of the group, presented in USD, for the year ended 31 March 2016.
 

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