Naspers Ltd S/Adr

Hello partners, welcome to our results day. I am Fabricio, I am CEO of Prozos. Today morning we released our results. I am very excited about what we are delivering and I hope you will enjoy our results call today. Today is a special call. I am not going only to show you the numbers, but we have two special guests. Last time you asked me to talk more about ecosystem and food delivery and today we have the CEO of iFood and the CEO of Just Eat here with me to tell you much more details about what's happening at process. I'm very excited about the results. I'm going to make a introduction to you about your ecosystem and hope you enjoy what we are going to see today. So to start first I'm very happy on how Prozos is delivering. We are now much more focused. We are focused in delivery, we are focused in finance, we are focused in experience and all our business are growing and doing well and I'm going to open to you today much more info about how we are operating. We are also focused in Latin America, in Europe and in India and I think with this focus, Focusing results and also our innovation capacity, we have many more years of good results to share with you. As you know, we have around 1 billion customers, we have around 5 billion partners, around 100 billion dollars that we sell, and we are going to open much more about how we operate. As you know, we got to almost $10 billion in revenue, it's going to keep growing to more than $13 billion next year. We got to $1.3 billion in EBITDA, that's 84% more than last year, what is very good in my opinion. But if some of you think this is adjusted EBITDA, how much cash you are generating, We increased our cash flow, free cash flow by 2 billion dollars in the last two years from minus 0.5, 0.6 to plus one and a half. So I'm very confident we are in the right direction. As I told you a few months ago, the center of our vision is how we make our ecosystem work. And I know one year ago, six months ago, it was a plan. My plan was we are going to build an ecosystem as a competitive advantage. We are not here just to show you plants, we are here to show you real results and we are going to open a lot to you how our Latin American ecosystem works today and how this is going to connect to what we are going to do in India and in Europe. So today we are going to talk a lot about our ecosystem and also food delivery. Hope you enjoy seeing process with much more details. Moving on, ecosystem is the core of everything we talk about here. Some people think process in Latin America is iFood. It's not. iFood is the foundation. iFood is a very important foundation. But our competitive advantage, what we can do better than everyone else, is how to run a full ecosystem. And now it's time to open all the details for you. So, as I told you, that was the What some people think, process is iFood. Process is food delivery. Yes, process started as food delivery in iFood. iFood is amazing. iFood is growing a lot. We are close to 200 million orders today. It was like when I started 20,000 orders, now close to 200 million. iFood besides doing food delivery is the right foundation because we have many customers with a very high frequency and on top of that we can keep growing we have a big moat against competition and now it's time to open that for you so as i told you food delivery is an amazing business iFood is an amazing foundation but that's the vision i sold to you last year it's not only for delivery it is travel grocery ads events classifieds The good news. This is not a plan anymore. This is a reality. It's a reality with very good results. Why? Because the total directable markets of all those business are much bigger than food delivery. They are ten times bigger than pure food delivery. But I don't have a plan to do that. We are executing that. Over the last one year, we made so much progress in all those areas. Some of you are going to be surprised. But we have Despegar. You all know we made a big acquisition. It's not only Despegar. We are very strong in grocery. And we also invest in two important grocery companies, Shopper and Daki. In dine-in, iFood is strong in delivery but also iFood is very strong today in making the transactions inside restaurants. We acquired five companies including kiosks for food for restaurants and loyalty programs for restaurants and ERP for restaurants and now we have tens of millions of orders in the dine-in and the markets that we have there are very big markets. In FinTech and Credit, it's a big business. In Payments, it's already a big business. Not only iFood but also Zoop and Coin. In Pharmacy, we are growing very fast but we also invested in Evo that's enabled us to grow even faster. I'm going to get in details on that today and Diego is going to be here with me to show you all the details. Everything I'm showing you here, the ecosystem besides food delivery, today have revenues of $1.5 billion and today is growing more than 40%. So the ecosystem plan of last year is not a plan anymore. It's a very big business growing fast and we have so much more ahead of us. Today, the ecosystem is more than 50% of our revenue. You can see here, pure foods 45%, fintech 17%, travel 29%, and other marketplace categories 7%. So we are much more than food delivery, growing 40%. It's very good to know that because this whole market has a lot of runaway of growth. We have a lot of growth ahead and it's very difficult to compete against a company like us that has customers buying and having the benefits of us offering them many services together, cheaper, faster, with less friction. All those markets together has a lot of runaway. You can see here comparing Brazil to China on all those markets We believe we are going to keep to see growth for many years ahead. Look at that, starting to give you some more details and some more colors about the existing ecosystem that we run in Latin America. If you look to our grocery business, we are growing 50% over the last three years. Today, we are two times bigger than the number two players selling groceries online. The second player is an amazing marketplace company. They are very good. And even so, we are two times bigger than them, growing 50% in a market that is going to keep growing for many years. On pharmacy, we are growing 70% year over year. And now that we invested in Mevo, we expect not only to keep this growth rate, because now we can also sell prescription medicine. On fintech, we never show this number open one by one. Many of our fintech business are growing 100% year over year. Our credits for restaurants are growing 115%, our infrastructure for fintech 100%, and new vouchers 60%. All of those business are not only growing much faster, but their profitability are increasing aggressively. So I show in the other slides, Our ecosystem, besides food, generates something more than $150 million in profits. So that's what we built in the last one year. Food Deliver is a foundation. We have a big brand, we have lots of customers, we have very good technology, but then now we built a Amazing ecosystem. Latin America has another company, a marketplace company that values between 50 and 100 billion dollars and it's an amazing ecosystem. That's what we are building and we will build another 50 to 100 billion dollar ecosystem in Latin America. Let me show you some more data with you. Ads is growing 100% year over year and we have a lot of runway to grow on ads. Today we acquired a company called Advolve and our Ed's business is accelerating and growing amazingly well. We are serving tens or hundreds of companies having the best solution to increase sales for, for example, for companies like Coke or Heineken or AB InBev.

It's not only Ed's.

Destagar, as you know, last year, I promise you, it is possible because we acquired Destagar. Destagar is going to grow faster because they are part of our ecosystem. We got a lot of questions on that. Can we really help travel open to grow faster? Look to this data. Today, Destagar is growing The whole Despegar 30%, only Brazil 40% year-over-year. Before we acquired Despegar, Despegar was growing around 10%. And the reason of that is the second chart. 21% of Brazil revenues of Despegar are related to cross-sell together with the process ecosystem. That was our vision. We can, because of our frequency of our technology, Our customers are happier because they can buy easier and better and cheaper travel business. And as I told you, it's not only travel. It is grocery, it is fintech, it is credit, it is meal voucher. That's the Prozos ecosystem. I want to give you this overview on the ecosystem, but I hope you will stay tuned because after me we will have Diego here explaining you in much more details how each of those companies are working and we will be here for questions today. Besides developing the ecosystem, and part of the ecosystem vision is how technology makes all of that work. One week ago, we made an event called Prozos Forward, and I'd like to invite you to go there and watch the Prozos Forward event, where we showed how we are using AI to change completely our business. We really, really use AI to operate the whole iFood business. Last year I told you about large commerce model. That was our dream to train a model that is smarter than everything else we have to offer better service to our customers. It's a reality. 100 million customers in Latin America are modeled in our AI model. It operates 10 to 50 times cheaper than if we bought a model from a leader model in US. So if you think you didn't heard it right, We developed our own model, traded using our own data, and we operate 50 times cheaper than if we just buy from a global AI company. That's when AI is cheaper and faster, because we do distillation on models, so we make sure that we can have the results as fast as we need. So process is very good in the large commerce model. It's a reality now. We are expanding to all ecosystem now. So all those companies you saw, they are going to use the same model and improve their numbers. Token Claw Token Claw Token Claw Token Claw Token Claw What is happening? They just asked for an app that connects to LCM and connects to our old data so everyone can work faster, everyone can work together. We create skills and these skills are used between the other people inside the company. I think we have the best implementation in a company of AI helping the company to move faster. But it's more than that. We just expanded Token Claw. to all our 5 million restaurants. So now if you are a partner of Prozos as a restaurant or as a partner, you have access to the best AI in the world. And we just launched last week in Prozos Forward how we came through Zapier, have access to the best assistance to deliver whatever you need. You can say just help me with that, negotiate, buy, etc. So Prozos is positioned as best in class in AI, for sure best in class in Europe, Latin America and India. And we are going to see a little today how this is connected to the reality. So in the core of the Latin American ecosystem that we are going to talk about today, we have large commerce model defining how everything operates. And on top of that, many assistance like Zapia, as I just said, but also many others like Sofia and Ailo and Toki and Luzia. AI for us is generating results, reducing costs, accelerating growth and serving better services. Today we are open how the ecosystem works. Hope you watch also PROZOS Forward and hope you enjoy seeing how we operate. I will be back here in a few minutes, but now I want to ask Diego to come here and share more about PROZOS in Latin America. Diego. Thank you, Fabricio. Hello.