Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Investor Day (March 2019)
30 slides from Vend Marketplaces Asa's investor day presentation, March 2019
Slide 1: Next: Growth & Financial Services
NEXT: GROWTH & FINANCIAL SERVICES
Slide 2: Historical track record of incubating growth businesses
Historical track record of incubating growth businesses Raoul Grünthal Value proposition Driving change through innovation by investing in digital companies that strategically fit, scaling and helping them become market leaders Revenue EBITDA Position Traffic Sustainability #1 1,970 99 123m Empoweri
Slide 3: Growth highlights
Growth Growth highlights Proven ability to incubate future market leaders Robust investment track record and ability to transition into scale-ups Proven scalable platforms for international growth e.g Prisjakt Benefit from the Schibsted platform: innovative and entrepreneurial culture, traffic, data
Slide 4: We have created champions before and will do it again with unique tools
We have created champions before and will do it again with Growth unique tools such as… Current growth portfolio Previously part of growth portfolio 70
Slide 5: Our turbo-charged accelerator and unified platform
Growth …our turbo-charged accelerator and unified platform… Industrial investments within the growth unit have been accelerated through cross platform traffic, data harvesting and integration ✓ Traffic to and integration of high value sites… ✓ ✓ …creating data driven insight, which can be… Integrati
Slide 6: …and broad distribution network
Growth …and broad distribution network Overview Schibsted Distribution – 2 delivery networks Distributed parcels across network, thousands • New business initiatives have yielded results ~500k newspapers * 7 nights per week • Significant increase in physical reach through 5 400 distribution innovati
Slide 7: Solid, diversified portfolio of thriving ventures
Growth Solid, diversified portfolio of thriving ventures Price Ed-tech eHealth Distribution Marketplaces Editorial Other comparison Minorities Majorities Schibsted invest in winning start-ups based on clearly defined investment criteria and with uncompromised capital discipline 73
Slide 8: Prisjakt – Swedish and Norwegian market leader with international growth potential
Prisjakt – Swedish and Norwegian market leader with Growth international growth potential Founded in 2002/Acquired in 2006 – Present in 8 countries #1 800k ✓ Leading price comparison service for consumer products Clear market leader Daily visits ✓ Strong growth in e-commerce Sweden and Norway Strong
Slide 9: We selectively allocate our capital and adhere to clear investment objectives
We selectively allocate our capital and adhere to a clear and rational Growth set of investment objectives… Investment objectives and rationale Investment criteria 1ü Outstanding entrepreneurs and teams Looking for consumer-facing businesses with market leading potential where Schibsted can use 2ü P
Slide 10: …evidenced by our stellar IRR performance
Growth …evidenced by our stellar IRR performance Historical investments, value created and IRR Strong value creation historically Strategic venture investments Track record of home runs, e.g., Blocket, Good investments Lendo and Prisjakt ~10 000 Limited losses on downside ~ 1 500 Leveraging
Slide 11: Multiple vectors of growth within the Growth division
Growth Multiple vectors of growth within the Growth division 1 2 3 4 5 Monetisation Product New ventures M&A Geographic development expansion • Advertisement • Ed-tech • Bolt-on • Adjacent services • Traffic and data • Health-tech • In-market • Adding features from consolidation • Distribution / oth
Slide 12: Growth highlights
Growth Growth highlights Proven ability to incubate future market leaders Robust investment track record and ability to transition into scale-ups Proven scalable platforms for international growth e.g Prisjakt Benefit from the Schibsted platform: innovative and entrepreneurial culture, traffic, data
Slide 13: Financial Services
Exciting positions in an attractive and rapidly developing financial services market Dan Ouchterlony Value proposition Empowering people to take well-informed financial decisions Revenue EBITDA Position Partners Sustainability #1 1,010 327 100+ Power is shifting Financial Services Loan broker in fro
Slide 14: Financial Services highlights
Financial Services Financial Services highlights Taking advantage of change in financial markets by building disruptive businesses Scaling Lendo locally and internationally Exciting portfolio and strong track record in building financial services companies Leveraging on the trusted and experienced S
Slide 15: Financial Services
Financial Services 2 81
Slide 16: Lendo empowers users to find and sign the best loan
Lendo empowers users to find and sign the best loan, Financial Services 80% of revenue fully automated – unique vs. competition Proposals – Application Credit scoring inbox with Partner sent offers process ~5% Lendo receive ~5% of all loans payed out to consumers by the 2 4 6 lender at the time of t
Slide 17: Lendo – European market leader within loan brokerage
Financial Services Lendo – European market leader within loan brokerage ✓ Digital process – one loan application reaching +25 banks Founded in 2007/Acquired in 2009 ✓ Favourable market trends #1 NOK ~20bn ✓ Market leader in Sweden and Norway Clear market leader loan volume per year Norway and Sweden
Slide 18: Strong development in underlying consumer finance market
Financial Services Strong development in underlying consumer finance market Development in household credit card debt vs personal loans, SEKbn Current market trends 120 135 CAGR 101 106 109 113 99 Consistent growth over last years 43 45 45 46 44 45 46 5% Positive consumer sentiment Stable regu
Slide 19: #1 in Sweden and Norway, #2 in Finland, catching up to the competition
#1 in Sweden and Norway, #2 in Finland, catching up to the Financial Services competition Market position1 #1 #1 #2 ✓ Lendo #1 by a large margin ✓ Lendo #1 with some margin ✓ Lendo #2 ✓ Developing faster than #2 in a growing ✓ Maintaining market share in a flattening ✓ Developing faster than #1 in a
Slide 20: Lendo displays virtuous reinforcing network effects
Financial Services Lendo displays virtuous reinforcing network effects A consumer applying at a marketplace has a More More higher chance of: customers lenders ✓ ✓ being approved ✓ ✓ receiving the best possible offer getting the full amount requested Better customer experience More and better offers
Slide 21: Creating value for partners, with low dependence on individual partners
Creating value for partners, with low dependence on Financial Services individual partners Personal loan partners, % of volume Personal loan partners, % of volume Largest partner Largest partner 13% 19% 87
Slide 22: Lendo has an impressive financial track record and capital light business model
Lendo has an impressive financial track record and capital Financial Services light business model Strong growth in revenue with stellar margins Solid cash conversion1 and capital light business model NOKm NOKm Marketing expense as 49% 45% 48% % of sales 900 852 100% 18 17 120% 800 90% 704 16 700 80
Slide 23: Proven business model with international scalability potential
Financial Services Proven business model with international scalability potential Roll-out in Norway in 2012 2 years NOK 47m Time to breakeven Revenue year 2 Roll-out in Denmark in 2018 3-4 years DKK ~50m Time to breakeven Revenue year 2 Unique scalable platform due to the automated and capital ligh
Slide 24: Banking and finance is undergoing significant change
Banking and finance is undergoing significant change, Financial Services opening up opportunities for agile players Regulatory 1 • • PSD2 gives new opportunities Local FSA implementing EU regulations 2 • Cloud and digital ID tech (Bank-ID) Tech • Enabling rapid creation and adoption of services Fina
Slide 25: Consistent, profitable growth since 2009
Financial Services Consistent, profitable growth since 2009 Financial Services revenue and EBITDA margin, NOKm 1 Revenue EBITDA 1 010 892 638 34% 405 432 34% 32% 25% 27% 23% 293 19% 173 11% 104 5% 20 49 10% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: Excluding financials for minorities e
Slide 26: Case study: Hypoteket first 100% digital mortgage experience in Sweden
Case study: Financial Services Hypoteket first 100% digital mortgage experience in Sweden Overview Business model • Schibsted invested in Hypoteket in 2015 2.5x during seed stage 2,5 Asset Managers • Accelerated and risk reduced by partnering with Schibsted Growth, e.g, supporting fund raising and c
Slide 27: Schibsted entered financial services by pioneering the aggregator layer
Schibsted entered financial services by pioneering Financial Services the aggregator layer, partnering with established providers Consumer Pension/ Electricity Insurance Mortgage SME credit loans Savings Aggregators Providers Recent investments into high quality providers 93
Slide 28: Multiple vectors of growth within Financial Services
Financial Services Multiple vectors of growth within Financial Services 1 2 3 4 Monetisation Product development M&A Geographic expansion • Win existing markets • Build new products • New venture in Sweden, Norway e.g. Bynk, Hypoteket, investments e.g. and Finland Lendo for business, Hypoteket, Bynk
Slide 29: Financial Services highlights
Financial Services Financial Services highlights Taking advantage of change in financial markets by building disruptive businesses Scaling Lendo locally and internationally Exciting portfolio and strong track record in building financial services companies Leveraging on the trusted and experienced S
Slide 30: Q&A
Q&A