Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Investor Day (2004)
59 slides from Vend Marketplaces Asa's investor day presentation, 2004
Slide 1: Newspapers
Newspapers Birger Magnus EVP Newspapers
Slide 2: Agenda
Agenda Performance and positions of the newspapers The multimedia positions, opportunities and threats Some organizational priorities Capital Markets Day 2004 2
Slide 3: Agenda
Agenda Performance and positions of the newspapers The multimedia positions, opportunities and threats Some organizational priorities Capital Markets Day 2004 3
Slide 4: Development from 2nd place to market leader
Development from 2nd place to market leader vs. (Circulation '000) 579 442 348 377 Profitability gap Approx. SEK 2.2 bill. Aftonbladet Expressen Aftonbladet Expressen (incl. GT (incl. GT and KvP) and KvP) 1995 Mar 2004 Capital Markets Day 2004 4
Slide 5: Circulation 2000 – 2004
Circulation 2000 – 2004 Per publishing day Circulation Gap 495000 140 000 475000 120 000 455000 100 000 435000 80 000 415000 60 000 395000 40 000 375000 20 000 355000 0 335000 -20 000 315000 -40 000 295000 -60 000 275000 -80 000 May May May May Nov Nov Nov Nov Jul Jul Jul Jul Oct Oct Oct Oct Jan Feb
Slide 6: Advertising 1996 – 2004
Advertising 1996 – 2004 Offline, SEK million 400 350 CAGR 96-03: 4.6% 300 250 200 150 100 50 0 1996 1997 1998 1999 2000 2001 2002 2003 LTM Note: Nominal Capital Markets Day 2004 6
Slide 7: Operating profit vs. business cycle
Operating profit vs. business cycle Operating profit (EBITA) ”Storstadspress” advertising1) SEK mill. SEK mill. 20 4,500 0 4,000 -20 3,500 -40 3,000 -60 2,500 -80 2,000 -100 1,500 -120 1,000 -140 -160 500 -180 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Operating profit Busine
Slide 8: Cost and circulation development
Cost and circulation development Costs* Circulation SEK million Stockholm region 1 056 127 067 -21% 107 408 837 +18% Readership in Stockholm increased with 29% in the same period 2001 LTM Q1 04 2001 LTM Q1 04** * Nominal ** Monthly average from April 2003 to March 2004 Source: Tidningsstatistik; Orv
Slide 9: Svenska Dagbladet – Changed qualities
Svenska Dagbladet – Changed qualities Year 2001 Year 2003 Self-confident Complicated Respected Straight forward Old-fashioned Professional Technologically Engaging forwardlooking Self-satisfied Nationally recognized Honest Trustworthy Open Qualites that has Has integrity been disposed of New qualiti
Slide 10: Good circulation development in Q1 – Fierce competition in the advertising market
Good circulation development in Q1 – Fierce competition in the advertising market • Ad revenues down 21% year-on-year • Structural changes in the real estate advertising market • Continued weak development for brand and display advertising • Continued circulation growth – 1.5% growth year-on-year in
Slide 11: Continued difficult market situation – Significant impact of existing improvement programs this year
Continued difficult market situation – Significant impact of existing improvement programs this year • Operating margin (EBITA) for the newspaper of 5% vs. 6% (excl. royalty) last year • The cost level for this year is expected to be approx. NOK 80 mill. lower than in 2003 • The costs in the newspap
Slide 12: New improvement program of NOK 180 million for 2005 to 2008
New improvement program of NOK 180 million for the period 2005 to 2008 • The objective is that approx. 25% of the effects will be reached by 2005, approx. 70% by 2006, and that the program is in full effect from 2008 included • The distribution of the estimated results improvements is as follows: •
Slide 13: Historic and planned manning development
Historic and planned manning development FTE 1050 1000 950 900 850 800 750 700 650 600 1998 1999 2000 2001 2002 2003 2004 2005 2006 Figures for Aftenposten AS (newspaper) * Capital Markets Day 2004 13
Slide 14: Still strong performance
Still strong performance • Operating margin of 20% vs. 23% (adjusted for royalty) last year • Advertising revenues for the newspaper on level with last year • Slightly weaker circulation development – Circulation revenues are down 3.7% year-on-year • The weekend package ”80-80-80” launched March 26t
Slide 15: Circulation 1994 – 2004
Circulation 1994 – 2004 12-month rolling average, weekdays, thousands 400 390 380 370 360 350 340 330 320 310 300 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Capital Markets Day 2004 15
Slide 16: Still strong performance
Still strong performance • Operating margin of 20% vs. 23% (adjusted for royalty) last year • Advertising revenues for the newspaper on level with last year • Slightly weaker circulation development – Circulation revenues are down 3.7% year-on-year • The weekend package ”80-80-80” launched March 26t
Slide 17: A 20 Minutes edition goes through three phases
A 20 Minutes edition goes through three phases Distribution audience Revenues Phase 1: Optimize circulation Phase 2 Phase 3 Readership growth Revenue growth Time Capital Markets Day 2004 17
Slide 18: Circulation development in Spain
Circulation development in Spain Circulation Circulation Thousands 1 600 1 400 1 200 • Acquisition of MyM 1 000 by 20 Min Holding • Circulation 800 increased from 200’ Launch in Seville Launch in Zaragoza to 500’ 600 400 Launch in Valencia 200 and Alicante 0 jan.01 apr.01 jul.01 oct 01 jan.02 apr.02
Slide 19: Readership development in Spain
Readership development in Spain Circulation / Readership Circulation Thousands Official readership (EGM) 1 600 1 400 1 200 1 000 800 600 400 200 0 jan.01 apr.01 jul.01 oct 01 jan.02 apr.02 jul.02 oct 02 jan.03 apr.03 jul.03 oct 03 jan.04 apr.04 Capital Markets Day 2004 19
Slide 20: Revenue and cost development
Revenue and cost development EUR Thousands Revenues Costs 10 000 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 2000 2001 2002 2003 Q1 2004 Capital Markets Day 2004 20
Slide 21: Schibsted in control – Strong growth in all markets
Schibsted in control – Strong growth in all markets Schibsted increased its stake from 41.5% to 98.7% in March • Options on approx. 30% of the shares in Spain exercised Strong revenue growth year-on-year in all markets • Switzerland: 61% • Spain: 66% • France: 83% New launches in Spain and France •
Slide 22: 20 Minutes today
20 Minutes today Circulation Daily readers Thousands Thousands Ranking Switzerland 320 720 2 Spain 650 1’600 2 France 675 1’400 2 Total 1’640 3’700 Capital Markets Day 2004 22
Slide 23: Schibsted in control – Strong growth in all markets
Schibsted in control – Strong growth in all markets Schibsted increased its stake from 41.5% to 98.7% in March • Options on approx. 30% of the shares in Spain exercised Strong revenue growth year-on-year in all markets • Switzerland: 61% • Spain: 66% • France: 83% New launches in Spain and France •
Slide 24: Our readers are considerably younger than the established newspapers
Our readers are considerably younger than the established newpapers – We are not stealing any readers 35+ 15-34 Le Parisien 31% 69% 20 minutes 55% 45% Source: IPSOS March-June 2003 Capital Markets Day 2004 24
Slide 25: The development of 10–13 year olds who read a newspaper more than once per week
The development of 10 – 13 year olds, who read a newspaper more than once per week (Switzerland) German- 10 – 13 years speaking Switzerland 100% 85% Before 75% 20minutes 50% After 25% 20minutes 1997 2001 2002 Source: Special survey – “Kids & News“ Capital Markets Day 2004 25 20 Minuten und die Kids
Slide 26: CocaCola on a front page ad!
And the concept is proving itself by attracting advertisers targeting the young, problematic readers! CocaCola on a front page ad! Capital Markets Day 2004 26
Slide 27: The Baltics
The Baltics Start-up problems at Kroonpress resolved • Eesti Meedia with operating profit (EBITA) of EEK 8 mill. (EEK 15 mill.) • Start up problems at Kroonpress reported in Q1 are resolved – Operations back to normal • Election effects on ad revenues in Q1 2003 makes comparison difficult • Decline
Slide 28: Agenda
Agenda Performance and positions of the newspapers The multimedia positions, opportunities and threats Some organizational priorities Capital Markets Day 2004 28
Slide 29: Everything we ever said about the internet is happening
Internet ?!? ”Everything we ever said about the internet is happening.” Andrew S. Grove Chairman Intel Corp. Capital Markets Day 2004 29
Slide 30: Schibsted and internet
Schibsted and internet Online newspapers Online classified advertising Cost reductions Portals Capital Markets Day 2004 30
Slide 31: The Gartner Group hype curve
The Gartner Group ”hype curve” ”E”-terms widely used ? New economy Revealing mistakes Internet www E-trend Expectations Deep Hopes rise Satisfactory starts high disappointment profits 1990-96 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Gartner Group 1999 Capital Mar
Slide 32: Internet traffic on media sites
Internet traffic on media sites Unique visits, March 2004 45,439,379 46,085,485 1,598,276 3,843,793 3,886,462 6,646,979 6,734,899 10,707,562 12,667,514 Source: Red Measure, March 2004 Capital Markets Day 2004 32
Slide 33: Readership on- and offline
Readership on- and offline Daily readership, thousands Only online version Both Only paper version 2500 2000 1500 1000 500 0 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 1999 2000 2001 2002 2003 2004 Capital Markets Day 2004 33
Slide 34: Traffic development
Traffic development Unique visits per month, million 50 45 40 35 30 25 20 Annual 15 growth rate 2002-04: 10 25% 5 0 2002 2003 2004 Source: Gallup Red Measure Capital Markets Day 2004 34
Slide 35: Readership on- and offline
Readership on- and offline Daily readership, thousands Only online version Both Only paper version 1,655 1,571 1,522 1,481 1,403 279 1,392 35 1,391 222 8 130 179 14 70 46 79 136 185 213 258 1370 1322 1242 1215 1158 1136 1118 96/97 97/98 98/99 99/00 00/01 01/02 02/03 Source: Gallup – 96/97 represents
Slide 36: Norway – top list unique visitors March 2004
Norway – top list unique visitors March 2004 Thousands VG 3,266 2,319 Startsiden 2,745 2,143 MSN 2,598 Dagbladet 2,297 1,558 TV 2 2,280 Kvasir 2,198 1,721 Aftenposten 1,641 1,249 March 2004 NRK 1,465 992 March 2003 Gule Sider 1,323 797 SOL 1,292 FINN 1,171 784 DinSide 809 550 Online 761 555 Start 66
Slide 37: Operating profit (loss) – Online newspapers
Operating profit (loss) – Online newspapers As of Mar 31 (NOK m illion) 2004 2003 2003 Advertising revenues 14,2 9,7 42,3 Other revenues 1,3 1,0 5,9 Total operating revenues 15,5 10,8 48,1 Operating expenses (10,9) (9,9) (42,4) Operating profit (loss) 4,6 0,9 5,8 As of Mar 31 (NOK m illion) 2004 200
Slide 38: Financials 2000 – 2003
Financials 2000 – 2003 NOK million 160 Revenue 140 Operating profit 120 100 80 60 34% 33% 40 24% 20 -42% -10% 0 2000 2001 2002 2003 LTM -20 -40 Capital Markets Day 2004 38
Slide 39: Continued strong growth in all markets
Continued strong growth in all markets • Operating revenues in Q1 grew by 32% year-on-year to NOK 38 mill. • Operating margin (EBITA) of 36% (29%) • Revenue growth in all markets compared to Q1 last year • Cars: 44 % • Recruitment: 36 % • Real estate: 16 % Capital Markets Day 2004 39
Slide 40: FINN has a very strong market position
FINN has a very strong market position Market share Bundling with newspaper #1 Limited Recruitment 85% Yes Real estate 50% Limited Cars Capital Markets Day 2004 40
Slide 41: Migration of classified advertising – Real estate
Migration of classified advertising – Real estate Number of ads, 12-month rolling average 8000 7000 6000 5000 4000 3000 2000 1000 0 01 02 03 04 20 20 20 Capital Markets Day 2004 20 41
Slide 42: Migration of classified advertising – Recruitment
Migration of classified advertising – Recruitment Number of ads, 12-month rolling average 4500 4000 3500 3000 2500 2000 1500 1000 500 0 01 02 03 04 20 20 20 Capital Markets Day 2004 20 42
Slide 43: Launch and learn
“Launch and learn” Development Vision Experience and knowledge (learning loops) Development of: • Cost • Organisation • Product • Technology Time Capital Markets Day 2004 43
Slide 44: Important differences between FINN and Blocket
Important differences between FINN and Blocket Strategy • Exploit the position of the • Purely C2C newspapers in the B2B market • Building traffic • Secondly C2C • Then B2B Business Model • Support real estate agents and • Activating the consumers companies to succeed – ”People’s movement” Product &
Slide 45: Swedish eCommerce sites
Swedish eCommerce sites Unique monthly visitors February 2004, Thousands 1 146 388 335 334 307 243 193 Blocket Kelkoo Amazon CDON Tradera Netonnet IKEA Source: Nielsen Netratings Capital Markets Day 2004 45
Slide 46: Classified ads on the net in Sweden
Classified ads on the net in Sweden Strong growth in the Swedish classified ad market on the net • Operating profit in Q1 of SEK 2.4 mill. for Blocket and Finnmer combined – Including restructuring costs • Strong traffic growth for Blocket • Number of visitors increased by 135% compared with Q1 last
Slide 47: Changing competitive landscape
Changing competitive landscape ILLUSTRATIVE Product range Degree of involvement in Wide the exchange Limited Low Pure advertising Advanced search ? ”Fixed fee” High Auctions Capital Markets Day 2004 47
Slide 48: Operating profit (loss) – Online activities
Operating profit (loss) – Online activities NOK million Revenues Operating profit (EBITA) 125 100 75 50 25 0 -25 -50 -75 -100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2000 2001 2002 2003 2004 Capital Markets Day 2004 48
Slide 49: Agenda
Agenda Performance and positions of the newspapers The multimedia positions, opportunities and threats Some organizational priorities Capital Markets Day 2004 49
Slide 50: Major changes in the media market increases demands on management and competencies
Major changes in the media market increases demands on management and competencies Major changes in the media market Higher pace of change Convergence and increased competition • Consumer market • Advertising market • Labor market Capital Markets Day 2004 50
Slide 51: Schibsted's new competitive situation will make it more difficult to rest on the laurels
Schibsted’s new competitive situation will make it more difficult to ”rest on the laurels” Capital Markets Day 2004 51
Slide 52: Major changes in the media market increases demands on management and competencies
Major changes in the media market increases demands on management and competencies Major changes in the Increased demands on media market leadership and competence Higher pace of change Integrated and strategic Convergence and increased leadership competition Market understanding and brand managemen
Slide 53: Building blocks for more entrepreneurial and adaptive organisations
Some building blocks for developing more entrepreneurial and adaptive organisations in Schibsted Attract, develop & retain top talents Capital Markets Day 2004 53
Slide 54: What do these people have in common?
What do these people have in common? Kjell Aamot Lena K. Samuelsson Einar Hanseid Hans Erik Matre Terje Seljeseth Andreas Norland Stig Seljeseth Kristin Skogen Lund Gunnar Strömblad Capital Markets Day 2004 54
Slide 55: Building blocks for more entrepreneurial and adaptive organisations
Some building blocks for developing more entrepreneurial and adaptive organisations in Schibsted Attract, Competence building and develop & sharing retain top • Strategic brand management talents • Operational effectiveness • Advertising products & sales • Multimedia concepts Capital Markets Day 200
Slide 56: Quotes from the interviews
Quotes from the interviews ”The newspapers’ sales representatives focus too much on their own product instead of studying the needs of their advertisers. The know little about how a brand is created and how the newspaper ”The newspapers are used to can be used as a communication platform receiving o
Slide 57: Building blocks for more entrepreneurial and adaptive organisations
Some building blocks for developing more entrepreneurial and adaptive organisations in Schibsted Attract, Competence building and develop & sharing retain top • Strategic brand management talents • Operational effectiveness • Advertising products & sales • Multimedia concepts Yearly organisational r
Slide 58: Backup
Backup Capital Markets Day 2004 58
Slide 59: Revenues and readership by country
Revenues and readership by country Operating revenues Circulation Readership EUR million Thousands Thousands Q1 04 Q1 03 2003 Mar 2004 Dec 2003 Switzerland 27.2 320 720 • Zurich 170 • Bern 70 • Basle 80 Spain 16.3 590 1,6181) • Madrid 300 • Barcelone 200 • Seville 50 • Zaragoza 40 France2) 12.3 675