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                                  e rson
                                                                               holders. The Educor delisting was concluded in May
                     G ro up ove rv i ew                                       and the M-Web delisting is expected to be finalised
                                                                               in July.
                     In line with our strategy to become one of the leading
                     media businesses in Africa and Asia, the group made       Fin an ci al rev i ew
                     steady progress in developing its subscriber platforms
                     and technology interests. At the same time, the           Growth in Ebitda was recorded in the television, print
                     maturer media interests delivered increased returns.      media and education businesses. Extensive develop-
                     While this growth strategy will have a negative impact    ments were undertaken in the internet and technology
                     on short-term earnings, over the medium term              businesses, resulting in an aggregate group Ebitda
                     prospects for building shareholder value are promising.   loss of R295 million.

                                                                               Depreciation increased by 43% to R517 million, the
                     Progress was made in the midst of turbulent market
                                                                               result of increased satellite transponder capacity and
                     conditions. Operationally, group revenues for the
                                                                               the new investment in printing infrastructure. Due
                     period grew by 29% to R9 billion. The traditional
                                                                               to the prescribed change in accounting policy the
                     media businesses all reported satisfactory growth in
                                                                               group for the first time reported a goodwill and
                     earnings before interest, tax, depreciation and
                                                                               intangibles amortisation charge of R948 million.
                     amortisation (Ebitda).
                                                                               Net exceptional profits of R3,3 billion were recorded,
                     The internet and technology businesses made               largely from the MIHL secondary offering of shares
                     significant gains, as reflected by revenue growth of      and the OpenTV/SpyGlass merger in the USA.
                     78% and 93% respectively. Despite market fluctuations
                     these technologies continued to flourish and transform    The net headline loss per N ordinary share amounted
                     the media industry. Prospects for further revenue         to 299c, and fully diluted earnings per N ordinary
                     growth and value creation from these businesses           share to a positive 616c.
                     remain promising.
                                                                               On 31 March 2001 the group had net consolidated
                     In view of the slump in the stock market and the fact     cash resources of R1 994 million and interest-bearing
                     that both businesses required funding for                 liabilities of R865 million (excluding satellite leases).
                     development, Naspers delisted Educor and M-Web            The group has adequate cash resources to fund its
                     with the approval of the relevant minority share-         existing business plan.                                     3

                                                                                                                                           A N N UA L R E P O RT 2 0 0 1
Progress was made in the midst
of turbulent market conditions.
Operationally, group revenues
for the period grew by 29% to
R9 billion. The traditional media
businesses all reported
satisfactory growth in earnings
before interest, tax, depreciation
and amortisation (Ebitda).
                                ove r view . . .
                                S EGM ENTA L R E VI EW
                                Revenues and earnings before interest, tax, depreciation and amortisation (Ebitda) of the key
                                business segments were as follows:

                                                         Revenue (R’m)                                      EBITDA (R’m)

                                                         2001    2000     %                             2001     2000         %

                                  Subscriber platforms                          Subscriber platforms
                                   - pay television      4 558   3 909   17      - pay television         347      229    52
                                                                                 - internet              (648)    (342) (89)
                                   - internet             411     231    78
                                                                                Print media               338      288    17
                                  Print media            1 922   1 653   16
                                                                                Technology               (365)    (170) (115)
                                  Technology             1 056    546    93     Book publishing            22       21     5
                                  Book publishing         545     434    25     Private education          22       (5)    *
                                  Private education       519     217      *    Corporate services        (11)     (14) 21

                                                         9 011   6 990   29                              (295)        7
                                                                                                                    * not comparable

                                                                                                                                       SU BSC R I B ER
                                                                                                                                       P LATFOR MS
                                                                                                                                       P ay te lev ision
                                                                                                                                       Over the period under review, the aggregate
                                                                                                                                       subscriber base increased by 100 000 homes to
                                                                                                                                       2,16 million. Importantly, the transition of
4                                                                                                                                      subscribers from the analogue to digital service
                                                                                                                                       continued, with the digital subscriber base for
                                                                                                                                       the first time now comprising a 51% majority of
                                                                                                                                       the total (March 2000: 41%). As a consequence,
                                                                                                                                       revenues grew by 17%. This transition not only
A N N UA L R E P O RT 2 0 0 1

                                                                                                                                       enhanced revenues and operating margins per
                                                                                                                                       subscriber, but also the ability to offer additional
                                                                                                                                       electronic services to the home. Ebitda improved
                                                                                                                                       by a sturdy 52% to R347 million.

                                                                                                                                    We anticipate that growth in the pay television
                                                                                                                                    subscriber base will slow down as the industry
                                                                                                                                    starts to mature. Nonetheless, it is expected
                                . . . EBI TDA imp roved by a stu rd y                  that the transition to digital will continue, and that the group will expand its offering of
                                                                                       interactive services to subscribers.
                                  52% to              I nt e rn e t
                                   R347 million . . . Over the past year, market perceptions of the internet swung from being unrealistically
                                                                                       euphoric to depressive. History reflects that such oscillations are typical of major innovations.
                                                                                       While market sentiment has fluctuated wildly, the internet industry continues to show
                                                                                       steady organic growth and no substitute technology has emerged. It appears that the internet
                                                                                       will continue to transform the broad economy and, of particular interest to the group, the
                                                                                       media industry in every country.

                                                                                       In our assessment the current market climate, now characterised by more realistic expectations,
                                                                                       is more conducive for our group to implement its strategic plans and build more sustainable
                                                                                       businesses on lower cost structures.

                                                                                       The internet developments across the group continued to show good progress as reflected
                                                                                       by an overall revenue growth of 78% to R411 million. Development losses amounted to
                                                                                       R648 million.
In South Africa M-Web maintained its position as the country’s leading on-line service provider, content
portal and corporate e-business enabler. Over the past year the subscriber base grew to nearly a
quarter of a million households. Turnover grew by 48% to R336 million.

While the rate of subscriber growth in the market has slowed down, e-commerce revenues are gradually
starting to gain momentum. The effect of free internet service providers (ISP) services in South Africa
is likely to result in a temporary slowdown in new subscriber growth, but the economic model of a
completely free, uncapped ISP service has proved to be flawed elsewhere in the world. The advent
of interactive television is bringing the internet closer to television. With this in mind, M-Web will
align its business more closely with MultiChoice Africa’s pay television platform.

M-Web Thailand is a premier local on-line service provider comprising of 11 consumer-focused websites.
The group owns portals, a Thai-language search engine, and has a majority interest in KSC, one of
the country’s largest ISPs with 200 000 users. M-Web Thailand’s websites attract about 3,5 million
page views per day, which is even more than in South Africa.

M-Web Indonesia was launched in May 2000. The portal now receives 1,5 million page views per day,
representing approximately 60% of the market, and has 500 000 e-mail users. This business is still
young but can be expanded.

The Chinese market has great potential but uncertainties due to the entry into the World Trade
Organisation (WTO) and changes to investment laws and regulations demand a cautious investment
approach. The focus is on growing our sport and financial portals, while exploring new investment

The print media operations in South Africa experienced static circulation levels in the aggregate and
muted conditions as regards advertising revenues. These factors limited revenue growth to 16%.
Countering this was an improvement in operating margins, largely the result of recent extensive
investments in infrastructure such as printing plants. As a result, Ebitda grew by 17% to R338 million.

Of all South African media groups, Media24 has the most advanced technology. Over the past four
years we invested in excess of R1 billion in our traditional print media businesses, both in the renewal
of infrastructure and the acquisition of new titles. This confirms our belief that, while mature, the
business offers sound prospects over the next decade. In the short term, continued pressure on                                                 5
circulation and advertising revenues, coupled with steep increases in paper prices, will slow down
profit growth.

                                                                                                                                               A N N UA L R E P O RT 2 0 0 1

                                                                                                   . . . the ad vent of
                                                                                                           in te r ac ti ve
                                                                                                                    te le vi sion
                                                                                                              is b ringing the
                                                                                                              inte rnet close r to the
                                                                                                              t e l ev i s i o n s e t . . .
                                ove r view . . .
                                T ECHNOLOGY
                                Revenues from the group’s technology businesses reflected spectacular
                                growth of 93% to in excess of R1 billion. OpenTV experienced excellent
                                revenue growth as its installed base almost doubled to 16 million
                                digital decoders across 43 network operators in some 50 countries.
                                It is now the most widely deployed system worldwide. Revenues from
                                the applications business are also coming on stream.

                                Globally, interactive television services are still in the early stages
                                of development. OpenTV is well positioned to sustain growth in this

                                Mindport’s aims were expanded to address the growing demand for
                                content management, encryption and billing solutions in the internet
                                protocol (IP) broadband markets.

                                Its customer care and billing business was merged with Noochee, a USA-based IP
                                infrastructure and application software company. The merger strengthened the
                                Mindport IBS sales channels and product base.

                                Irdeto Access, the fourth largest worldwide provider of content protection solutions,    . . . t h e b o o k p u bl i s hi n g b u s i n e s s e s re co rd e d
                                extended its base to 60 customers operating in 50 countries with seven million users.
                                                                                                                         revenue g row th o f 25%
                                                                                                                             t o R5 4 5 million
                                BOOK PUB LI SHI N G                                                                                             and Ebitd a imp rov ing
                                The book publishing businesses recorded revenue growth of 25% to R545 million and                                to R22 million . . .
                                Ebitda improving to R22 million. The book distribution division was transferred to
                                a business under the brand name On the Dot.

6                               PR I VAT E E D UCAT I ON
                                Due to the merger between National Private Colleges and Educor comparison with
                                the previous year’s figures is meaningless. Revenue for the year amounted to
A N N UA L R E P O RT 2 0 0 1

                                R519 million and Ebitda R22 million.

                                The private education industry experienced turbulent conditions over the past year.
                                In particular, uncertainty over how the industry is to be regulated and Government’s
                                decision to refuse deductions on the state payroll system to private educators has
                                had a negative impact on enrolments.

                                In the medium term, it is anticipated that private education will play a steadily
                                larger role in the world economy as the pace at which technologies change accelerates
                                and because people live longer, they will have to learn new skills during their
                                working lives.

                                DI VI D END
                                The board has recommended that the annual dividend be maintained at 24 cents per
                                N ordinary share. The dividend is payable to shareholders registered on 10 August 2001
                                and will be paid on or after 24 August 2001.

                                STR AT E
                                Naspers is scheduled to be converted to Share Transactions Totally Electronic
                                (STRATE), an electronic settlement platform for share transactions on the JSE in
                                November 2001. The move to STRATE will ensure Naspers' participation in a
                                sophisticated settlement process in line with the international best practice.
                                Shareholders will receive further communication in this regard in due course.

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