Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Q3 2017 Earnings Presentation
47 slides from Vend Marketplaces Asa's earnings presentation, Nov 3, 2017
Slide 1: Q3 2017
Q3 2017 3 November 2017 Rolv Erik Ryssdal, CEO and Trond Berger EVP CFO
Slide 2: Disclaimer
Disclaimer This presentation (hereinafter referred to as the "presentation") has been prepared by Schibsted ASA ("Schibsted" or the "Company") exclusively for information purposes, and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments. Reasonable c
Slide 3: Agenda
• Online Classifieds AGENDA • Media Houses • Growth • Finance • Summary Q3 2017 3
Slide 4: Highlights Q3 2017
Highlights Q3 2017 • Online classifieds: Solid growth in core verticals • Positive development in verticals in Developed phase, including France, Norway and Spain • Investment phase losses reduced • Publishing: Continued digital product development and strong editorial achievements • Improved EBITDA
Slide 5: New organization to strengthen local execution and global scale
NEW ORGANIZATION TO STRENGTHEN LOCAL EXECUTION AND GLOBAL SCALE Announced 19 Sept 2017 GROUP MEDIA MARKETPLACES 4000 people 3000 people NOK 9.5bn in revenue NOK 6.8 bn in revenue (2016) (2016) • Two focused divisions • Product and tech remain a driving force – responsibility for most initiatives mov
Slide 6: Overall strategic targets stand firm
OVERALL STRATEGIC TARGETS STAND FIRM WORLD CLASS DIGITAL GLOBAL LEADER MEDIA & SERVICES IN MARKETPLACES
Slide 7: Online Classifieds
, *& ONLINE CLASSIFIEDS L »_ \ SCHIBSTED
Slide 8: Well positioned for further growth
Well positioned for further growth Strong brands, among leading Professional verticals are the Minimizing friction and developing websites in each local market* main revenue contributors tools for pro verticals Other • In-app messaging 8% • Payments • Alerts Advertising 21% • Deliveries • Security V
Slide 9: Continued growth, increased margins as a result of reduced marketing spending in Q3
Online classifieds Continued growth, increased margins as a result of reduced marketing spending in Q3 France* Revenues (EUR million) and EBITDA margin • High revenue growth rate for verticals. New 70 +23% performance dashboards for verticals 60 implemented 50 60% • Positive results from monetizatio
Slide 10: Strong growth in Norway, driven by volumes and new products
Online classifieds Strong growth in Norway, driven by volumes and new products Norway Revenues (NOK million) and EBITDA margin • Volume increase in key verticals jobs, cars +21% and real estate 500 • Continued good performance by “Blink” 400 targeted distribution of real estate and jobs classifieds
Slide 11: Mixed development in Spain – accelerated growth in jobs and cars
Online classifieds Mixed development in Spain – accelerated growth in jobs and cars Spain* Revenues (EUR million) and EBITDA margin • Good performance in jobs and cars in Q3 +27% • Strong competition in real estate and generalist – focus on 35 product development and improving market share 30 • Tota
Slide 12: Soft quarter in Sweden
Online classifieds Soft quarter in Sweden Sweden Revenues (SEK million) and EBITDA margin* +2% • Good growth in verticals 300 • Continued good growth in jobs 250 • Revenue increase in professional cars 200 driven by premium features 59% 62% 59% 150 • Soft development in display advertising 100 • Wea
Slide 13: Continued high revenue growth rate in Italy and Austria, limited cost increase
Online classifieds Continued high revenue growth rate in Italy and Austria, limited cost increase Other Developed markets Revenues and EBITDA-margin (EUR million) 25 • Continued high growth rate in Italy +14%* and Austria 20 • Verticals and display advertising 15 drive growth 11% 10 9% • Slow growth
Slide 14: Continued high growth in Investment phase revenues – reduced investments
Online classifieds Continued high growth in Investment phase revenues – reduced investments YOY and compared to Q1 2017 and Q2 2017 Investment phase revenues Investment phase EBITDA (Million EUR) (Million EUR) • Continued strong revenue growth +80% • OLX Brazil on track, aim to reach 20.7 positive E
Slide 15: Increased ownership in Brazil to 50%; Strong revenue growth
Increased ownership in Brazil to 50% effective as of 1 July; Strong revenue growth and reduced losses based on market leadership OLX clear market leader in cars Number of cars on the site (1,000) +290% • High double digit Y/Y revenue growth in 948 Q3 • Growth driven by Private increased monetization
Slide 16: Continued strong development for Shpock – on track to volume leadership in the UK
Continued strong development for Shpock – on track to volume leadership in the UK Shpock continues to grow strongly Listings/month, Shpock UK Oct 17: 2.4M • Shpock continues its good volume growth • Particularly strong development in the UK which is now Shpock’s biggest market by volume 2.5 years af
Slide 17: Media Houses
MEDIA HOUSES 17
Slide 18: Digital development and tight cost control in Scandinavian publishing operations
Publishing Digital development and tight cost control in Scandinavian publishing operations Publishing operations Scandinavia Revenues and EBITDA (NOK million) 2,500 +1% 2,000 NOK million 1,500 1,000 500 7% 9% 11% 0 Q3 15 Q3 16 Q3 17 Online revenues Offline revenues EBITDA margin Figures include Med
Slide 19: Strong quarter in tabloid newspapers – revenue increase and tight cost control
Publishing Strong quarter in tabloid newspapers – revenue increase and tight cost control VG + Aftonbladet • Total revenue growth 3% in Q3. Online Revenues and EBITDA (NOK million) revenues +17% YOY. +3% 1,000 • Particularly good quarter in VG • 33% growth in digital subscribers Y/Y 800 • 23% growth
Slide 20: Digital subscribers in morning newspapers growing rapidly
Publishing Digital subscribers in morning newspapers growing rapidily Digital subscription numbers grow rapidly, creating foundation for significant revenues Number of digital only subscribers 240,000 +59% 200,000 160,000 120,000 80,000 40,000 0 2013 2014 2015 Q3 Q3 2016 2017 Svenska Dagbladet Norwe
Slide 21: Focus on digital product innovation in Publishing
Publishing Focus on digital product innovation in Publishing Aftenposten: Aftonbladet: VG Peil: personalized front-page live video coverage next generation news app Q3 2017 21
Slide 22: Schibsted Growth
SCHIBSTED GROWTH 22
Slide 23: Accelerated growth in Schibsted Growth
Schibsted Growth Accelerated growth in Schibsted Growth Schibsted Growth (Sweden)* Revenues (SEK million) and EBITDA margin Revenue split and growth rates (Sweden)* +30% 296 Q3 Growth rates: • Personal Personal finance Finance: +36% 228 +3% • Price comp./ 187 other: +20% Price comparison and other 2
Slide 24: Lendo – a successful entry to fast growing consumer finance market
Schibsted Lendo – a successful entry to fast growing Growth consumer finance market Lendo (Sweden) Revenues (SEK million) • Empowering consumers +50% through transparency 141 and simplicity • Effective customer 94 acquisition for lenders 71 • Scalable into additional markets • So far launched in Nor
Slide 25: Finance
a =\ \ FINANCE °° a 2 SCHIBSTED i th
Slide 26: Online classifieds verticals are the main growth drivers
Finance Online classifieds verticals are the main growth drivers Revenue split, consolidated Online classifieds Strong revenue growth in verticals Q3 2017 YTD Growth rate Q3 2017 YTD vs Q3 2016 YTD Other revenues 8% +20% • Diversified mix of Real estate revenue drivers for 23% verticals Advertising
Slide 27: Q3 income statement Schibsted Group
Finance Q3 income statement Schibsted Group Third quarter (NOK million) 2017 2016 Operating revenues 4,161 3,798 Operating expenses (3,378) (3,226) Gross operating profit (EBITDA) ex Investment phase 903 756 Gross operating profit (EBITDA) 783 572 Depreciation and amortization (158) (127) Share of p
Slide 28: EBITDA ex Investment phase development in Q3
Finance EBITDA ex Investment phase development in Q3 12 (18) (37) 903 (4) 41 27 38 88 756 EBITDA OLC France OLC Norway OLC Sweden OLC Spain OLC Other Media Media Other/HQ EBITDA Q3 16 Houses Houses incl. product Q3 17 Norway Sweden & tech Q3 2017 28
Slide 29: Solid revenue growth across the Online classifieds portfolio
Finance Solid revenue growth across the Online classifieds portfolio Revenues and EBITDA margin for Online classifieds Developed markets in Q3 External revenues, Million NOK, Pro forma, including proportionate share of JVs and associates growth in local currency Revenue +22%1 growth Y/Y Revenue (mNO
Slide 30: Reduced investments, good revenue growth expected going forward
Reduced investments, good revenue growth Finance expected going forward 15-20 percent Online classifieds revenue growth next 3-5 years target maintained; strong operational leverage inherent in business model. Online classifieds Investment phase • Full year investments are expected to go down compar
Slide 31: Key financial figures
Finance Key financial figures Earnings per share - adjusted Net cash flow from operating activities 2.00 NOK 800 NOK million 1.75 700 633 1.45 604 1.50 600 505 1.25 1.04 500 0.93 0.96 380 1.00 400 328 303 0.75 0.62 300 0.44 200 192 0.50 0.41 168 159 0.29 200 0.25 0.15 100 0.06 0.00 0 Q215 Q315 Q415
Slide 32: Strong financial position
Finance Strong financial position • NIBD/EBITDA 2.1 end at Q3 Debt maturity profile • Slightly above target range of 4,000 1x-2x 3,500 3,000 • Refinancing of short-term NOK million 2,500 bank facilities planned in 2,000 Q4 17 1,500 1,000 500 0 < 1 yr < 2 yrs < 3 yrs < 4 yrs < 5 yrs > 5 yrs Other int
Slide 33: Underlying tax rate stable around 30%
Finance Underlying tax rate stable around 30% ■ Reported tax rate may deviate significantly from the nominal tax rates in our markets. The main reasons are: ■ Share of profit (loss) of joint ventures and associates being reported net of tax ■ Unrecognised tax benefits from tax losses in Online Class
Slide 34: Highlights
HIGHLIGHTS 34
Slide 35: Highlights Q3 2017
Highlights Q3 2017 • Online classifieds: Solid growth in core verticals • Positive development in verticals in Developed phase, including France, Norway and Spain • Investment phase losses reduced • Publishing: Continued digital product development and strong editorial achievements • Improved EBITDA
Slide 36: Welcome to Barcelona – Investor Seminar November 2017
WELCOME TO BARCELONA Investor Seminar 14 November 2017 at 16:00 PRESENTERS: Rolv Erik Ryssdal Sondre Gravir Raoul Grünthal Antoine Jouteau Anders Skoe CEO CEO Marketplaces CEO Media CEO Leboncoin.fr CEO Finn.no More information at www.schibsted.com/ir Register at: https://goo.gl/i8eh6w The event wil
Slide 37: Appendices
APPENDICES Spreadsheet containing detailed Q3 2017 and Historical and analytical Information can be downloaded from www.schibsted.com/ir Q3 2017
Slide 38: Balanced portfolio with revenue and EBITDA growth
Online classifieds Balanced portfolio with revenue and EBITDA growth Revenues* (EUR million) EBITDA* (EUR million) Developed +18% +20% phase 196.4 89.0 167.1 Other 73.9 Other 150.3 65.1 Sweden Sweden Norway Norway Spain Spain France France Q3 15 Q3 16 Q3 17 Q3 15 Q3 16 Q3 17 +80% Investment phase 20
Slide 39: EBITDA improvement in all operating segments
Finance EBITDA improvement in all operating segments EBITDA ex Investment phase 800 800 670 600 559 NOK million 400 200 153 153 165 112 124 90 0 Q3 15 Q3 16 Q3 17 Q3 15 Q3 16 Q3 17 Q3 15 Q3 16 Q3 17 Online classifieds Media Houses Norway Media Houses Sweden Q3 2017 39
Slide 40: Key operations – Online classifieds
Key operations – Online classifieds Third quarter As of Q3 Year 2016 2017 Norway Dev. phase (MNOK) 2017 2016 2016 390 472 Operating revenues 1,410 1,197 1,587 178 216 EBITDA 598 529 670 46 % 46 % EBITDA margin 42 % 44 % 42 % Third quarter As of Q3 Year 2016 2017 Sweden Dev. phase (MSEK) 2017 2016 20
Slide 41: Key operations – Media Houses
Key operations – Media Houses Norway Sweden Third quarter As of Q3 Year Third quarter As of Q3 Year 2016 2017 Verdens Gang (MNOK) 2017 2016 2016 2016 2017 Aftonbladet (MSEK) 2017 2016 2016 401 428 Operating revenues 1,298 1,251 1,700 464 461 Operating revenues 1,374 1,428 1,933 241 225 of which offl
Slide 42: Cash flow
Cash flow As of Q3 (NOK million) 2017 2016 Profit (loss) before taxes 2,730 970 Gain on remeasurement in business combinations achieved in stages and (498) - remeasurement of contingent consideration Depreciation, amortisation and impairment losses 470 437 Share of profit of joint ventures and assoc
Slide 43: Financial key figures
Financial key figures Per Q3 Full year Schibsted Media Group 2017 2016 2016 Gross operating profit (EBITDA) (NOK million) 1,911 1,630 2,131 Gross operating profit (EBITDA) ex. Investment phase (NOK million) 2,454 2,222 2,904 Operating margins (%): Operating margin (EBITDA) 15 14 13 Operating margin
Slide 44: Capital structure
Capital structure Per Q3 Full year Schibsted Media Group 2017 2016 2016 Investments (NOK million): Operational investments (capex) 620 511 698 Shares and other holdings 5,010 346 751 Interest bearing borrowings (NOK million) 5,830 2,362 2,342 Net interest bearing debt (NOK million) 5,047 974 1,074 I
Slide 45: Basic information
Basic information A-share B-share Ticker Oslo Stock Exchange: SCHA SCHB Reuters: SBSTA.OL SBSTB.OL Bloomberg: SCHA:NO SCHB:NO Number of shares (26 October 2017) 108,003,615 118,803,976 Treasury shares (26 October 2017) 262,138 239,827 Number of shares outstanding 107,741,477 118,564,149 Free float*
Slide 46: Shareholder analysis
Shareholder analysis % of Shareholders SCHA SCHB Rank Name A-Shares B-shares Total capital % of foreign shareholders** 58.9 % 55.6 % 1 Blommenholm Industrier AS 28,188,589 28,598,589 56,787,178 25.0% Number of shareholders 4,832 4,518 2 Folketrygdfondet 6,021,190 10,945,610 16,966,800 7.5% Number of
Slide 47: Investor information
INVESTOR INFORMATION Visit Schibsted’s web site www.schibsted.com IR contacts: Jo Christian Steigedal VP, Head of IR jcs@schibsted.no +47 415 08 733 Espen Risholm IRO espen.risholm@schibsted.com +47 924 80 248 Schibsted ASA Apotekergata 10, P.O. Box 490 Sentrum, NO-0105 Oslo Tel: +47 23 10 66 00. E-