Afrikaans Annual Financial Statements




Transformation is important for Naspers to ensure we comply with local legislation and that our workforces reflect local demographics. As a good corporate citizen, we respect the dignity and human rights of individuals and communities wherever we operate. We aim to make a positive and enduring contribution to the social and economic development of South Africa, and recognise the role we can play by leveraging our resources and the goodwill of our staff.

MultiChoice South Africa retained a level 2 BBBEE rating and achieved the following notable achievements in important areas of transformation:

Ownership: MultiChoice scored full points on the ownership element of the BBBEE scorecard. One of the cornerstones of our approach to ownership was the creation of a scheme that provides an accessible and far-reaching shareholding opportunity to a new and vast grouping of South Africans.

Black South Africans now enjoy a 61,7% economic interest in the MultiChoice South Africa group.

In December 2011 shares in PN and PN2 began trading on an over-the-counter platform. At the end of the financial year ended 31 March 2014, the number of participants in PN and PN2 was 97 842 and 3 042 respectively (2013: 103 092 and 3 128). The PN and PN2 share schemes were launched in 2006 and 2007 respectively. To date, these schemes have received over R4bn in dividends, which were used to reduce debt and increase the value of PN and PN2. The total outstanding preference share funding at 31 March 2014 was R384m for PN and R145m for PN2. This outstanding debt will be repaid in full after payment of the dividend to be tabled for confirmation by shareholders at the September 2014 PN and PN2 annual general meetings.

Preferential procurement: Our preferential procurement programme supports the development of small, medium and micro-enterprises (SMMEs). We recognise the effort of our supply chain teams who identify and nurture emerging black-owned (including black women-owned suppliers) and are proud of the extent to which the use of our purchasing power to create opportunities for transformation has been embraced.

Enterprise development: Our achievement in enterprise development (ED) – an increase from a score of 0,05 in 2010 to 11 points in 2014, is evidence of the thought, planning and investment by companies across the group in support of this important issue.

The MultiChoice Enterprise Development Trust (“the trust”) works to ensure that new talent and previously disadvantaged businesses get the opportunity to compete fairly with established contributors of content. The trust provides finance to enable emerging production companies to acquire the assets and skills needed to supply high-quality productions. Linked with a contract from our broadcast partners (eg M-Net and SuperSport), to purchase the content and to provide business support where required, we assist these production companies to be productive, efficient and profitable.

In addition, we are constantly innovating to produce content relevant to our audiences. This includes an increased focus on local productions that provides opportunities to expose emerging film-makers to the world of commercial television production, learning about budgets, schedules and delivery requirements, while turning their stories and ideas into films for our viewers.

In recognition of our ability to enlist the resources of the group to increase access and opportunity, MultiChoice plays a broader role in the media and broadcasting environment.

A platform to share: We recognise our relatively unique position regarding our broadcast platforms, and the audiences we reach. Understanding how powerful this is in getting important social messages across to our viewers and communities, we provide airtime across channels to organisations whose work impacts the plight of South Africans in distress. These organisations provide us with feedback of the impact this far-reaching and high-impact marketing has on their abilities to achieve their goals of improving the lives of South Africans.

Media24 has made solid progress with its transformation aims in recent years. These are tracked against a scorecard for the Department of Trade and Industry’s code of good practice for broad-based black economic empowerment (BBBEE). In terms of the scorecard prepared by Media24’s BEE verification agency, Media24 increased its score by 7,88 points to 77,98, which takes it to a level 3 rating with 137,5% recognition on BEE spend, scoring full points on the ownership, socio-economic development and enterprise development elements. Black ownership in Media24 has risen to 45,22% (2013: 44,74%) and black female ownership has risen to 21,60% (2013: 21,22%).

Welkom Yizani: In 2006 Media24 launched the largest BBBEE share offer in the print media industry, Welkom Yizani, resulting in eligible black people and groups owning some 15% (directly and indirectly) in Media24 Holdings. In December 2009, to mitigate the impact of the recession on the value of these shares, Naspers wrote off R330m of its funding in Welkom Yizani and the scheme was extended by two years to December 2013, providing Welkom Yizani shareholders a better opportunity to profit from their original investment despite the recession.

On 9 December 2013 shares in Welkom Yizani began public trading.

In September 2013 Welkom Yizani received an ordinary dividend declared by Media24 totalling R20,62m.

Black economic empowerment partners

BEE rating level 3Media24, MultiChoice and other group companies have combined their buying power in South Africa in a centralised bargaining company, CommerceZone. Suppliers’ BEE performance is evaluated against specific criteria and they are expected to boost their annual BEE rating.

The MultiChoice preferential procurement programme supports the development of small, medium and micro-enterprises (SMMEs). In addition, these SMMEs are given opportunities to tackle larger-scale projects, enabling entrepreneurs to develop their skills and capabilities. MultiChoice’s preferential procurement spend on BEE-compliant companies was 48% in the reporting period. This equates to R7,7bn spent with BEE-compliant companies; 13% of the spend was on exempt micro-enterprises (EMEs) and qualifying small enterprises (QSEs).

MultiChoice has a network of more than 1 300 accredited installers across South Africa, which employ some 3 000 people.

In addition, the group runs multiple enterprise development initiatives. MultiChoice supported SMMEs in the construction sector through involvement in the construction of DStv City and the refurbishment of the Randburg fire station. MultiChoice also supports emerging businesses through early payment initiatives to improve their cash flows.

The trust has also assisted in the creation of close to 200 jobs in the 2014 financial year, supporting initiatives for qualifying QSEs and EMEs.

Naspers group: Total workforce split

2013   2014