Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Q1 2017 Earnings Presentation
45 slides from Vend Marketplaces Asa's earnings presentation, May 12, 2017
Slide 1: Q1 2017
Q1 2017 CEO Rolv Erik Ryssdal and CFO Trond Berger 12 May 2017
Slide 2: Q1 2017 Highlights
Q1 2017 HIGHLIGHTS • Increasing exposure to fast growing OLX Brazil to 50% and Yapo Chile to 100%. Creating strong cluster of Online classifieds leading positions in 5 LatAm markets • Continued solid revenue and EBITDA growth in Online classifieds Developed operations • High investments in Investmen
Slide 3: Agenda
• Increased stake in AGENDA Brazil and Chile • Online Classifieds • Media Houses • Growth • Finance • Summary Q1 2017 3
Slide 4: Increased ownership to 50% in OLX Brazil
Increased ownership to 50% in OLX Brazil • Increased ownership in market leader OLX Brazil • Taking over Telenor’s 25% • 50/50 JV with Naspers going forward • Full control of market leader Yapo in Chile • Taking over Telenor’s 50% • Strengthened foothold in LatAm • Market leading sites in 5 markets,
Slide 5: OLX.com.br – star performer, pushing monetization in a vast market
OLX.com.br – star performer, pushing monetization in a vast market Strong traffic growth – Strong revenue growth, Accelerating monetization 5% daily reach in Brazil reduced cost in 2017 Daily active users Million BRL • Further revenue growth +24% +120% acceleration in Q1 17 6.3 99 • Good growth in a
Slide 6: Strong position in verticals – monetization ramping up
Strong position in verticals – monetization ramping up Market leadership in cars Strong challenger in real estate Number of cars on the site (1,000) • Volume leader private • #1 in traffic2 +578% and pro • Clear leader in private volumes1 1,267 • 7x closest competitor1 Private • Challenger in profes
Slide 7: Chile: leading generalist with strong vertical positions
Chile: leading generalist with strong vertical positions in traffic and content • Daily reach close to 5% Leading position in cars of population Monthly visits (m) Number of listings (1,000) • Clear leader in generalist • 44% top of mind brand +2.2x +2.9x awareness, compared to 22% 13.4 204 for Merc
Slide 8: Streamlining emerging markets portfolio, focus on LatAm
Streamlining emerging markets portfolio, focus on LatAm • Exit from Malaysia, Vietnam Strong cluster of leading positions in LatAm and Myanmar 50% Brazil 50% Naspers • Selected minority positions in (+25%) OLX Asia remain in JVs with Brazil Telenor, Naspers and SPH 76% 24% Red Arbor InfoJobs 100% Ch
Slide 9: Online Classifieds
ONLINE CLASSIFIEDS
Slide 10: Balanced portfolio with revenue and EBITDA growth across all units
Online classifieds Balanced portfolio with revenue and EBITDA growth across all units Revenues* (EUR million) EBITDA* (EUR million) Developed +17% +12% phase 191.6 76.4 163.3 68.2 Other 146.1 Other 57.3 Sweden Sweden Norway Norway Spain Spain France France Q1 15 Q1 16 Q1 17 Q1 15 Q1 16 Q1 17 +80% In
Slide 11: Continued growth, margin affected by advertising phasing and sales force
Online classifieds Continued growth, margin affected by advertising phasing and increased sales force France* Revenues (EUR million) and EBITDA margin • Steady, high growth from verticals 70 +20% • +18% Y/Y in real estate 60 • +16% Y/Y in motor (underlying) 69% 69% 50 61% • Positive results from mon
Slide 12: 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 35 +20% • Good performance in jobs and auto • Strong competition in real estate – focus on 30 product development and market share 25 • Total growth partly supported by
Slide 13: 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 and real estate 500 +20% • Strong growth in personal finance 400 • Easter effect positive compared to Q1 2016 • Significant mar
Slide 14: Stable underlying development in Sweden
Online classifieds Stable underlying development in Sweden Sweden Revenues (SEK million) and EBITDA margin* 300 +0%* • Continued good growth in jobs 250 • Revenue increase in professional cars driven by premium features 200 • Soft development in display advertising and 150 50% 53% 51% private classi
Slide 15: Continued high revenue growth rate in Italy and Austria
Online classifieds Continued high revenue growth rate in Italy and Austria, limited cost increase Other Developed markets Revenues and EBITDA (EUR million) • Revenues +12%, 25 cost +1% in Q1 Y/Y 20 • Continued high growth rate in 15 Italy and Austria, driven by verticals and display advertising 10 •
Slide 16: Strong growth in investment phase revenues – increased investments in Shpock
Online classifieds Strong growth in investment phase revenues – increased investments in Shpock Investment phase revenues Investment phase EBITDA (Million EUR) (Million EUR) • Continued strong revenue growth +80% • OLX Brazil on track, aim to reach 15.5 positive EBITDA during 2017 -2.0 -4.1 JVs • Si
Slide 17: Strong growth for Shpock
Strong growth for Shpock – highly efficient market place for miscellaneous goods Highly effective for buyers and sellers Rapid growth in liquidity Strong growth in reach and engagement ~5 million listings/month ~12 million monthly active users, List in 30 seconds Discovery accumulated 41 mill app do
Slide 18: Media Houses
MEDIA HOUSES
Slide 19: Tight cost control and digital development in Scandinavian publishing
Publishing Tight cost control and digital development in Scandinavian publishing operations Publishing operations Scandinavia Revenues and EBITDA (NOK million) 2,500 2,000 NOK million 1,500 1,000 500 5% 4% 8% 0 Q1 15 Q1 16 Q1 17 Online revenues Offline revenues EBITDA margin Figures include Media Ho
Slide 20: Important editorial achievements in our newspapers
Publishing Important editorial achievements in our newspapers VG awarded the Norwegian SKUP Award 2017 5 diplomas to Schibsted media Editorial achievement among key objectives for the publishing units Q1 2017 20
Slide 21: Strong quarter in VG – revenue increase and tight cost control
Publishing Strong quarter in VG – revenue increase and tight cost control VG Revenues and EBITDA (NOK million) • 27 percent growth in digital 500 subscribers Y/Y • 28% growth in digital advertising 400 • Mobile and web-tv leading drivers • Strong performance in content 300 NOK million advertising •
Slide 22: Schibsted Growth
SCHIBSTED GROWTH Q1 2017 22
Slide 23: Successful strategy to build new business areas through Schibsted Growth
Schibsted Successful strategy to build new business areas and increase Growth competence through Schibsted Growth investments Selected examples Q1 2017 23
Slide 24: Accelerated momentum in Schibsted Growth
Schibsted Growth Accelerated momentum in Schibsted Growth Schibsted Growth (Sweden) Revenues (SEK million) and EBITDA margin Revenue split and growth rates (Sweden) +21% 317 Q1 Growth 263 rates: 238 +3% • Personal Hitta.se Finance: Personal finance +28% 20% 21% • Price comp./ 18% other: +26% • Hitta
Slide 25: Lendo – a successful entry to fast growing consumer finance market
Schibsted Lendo – a successful entry to fast growing Growth consumer finance market Lendo (Sweden) (full year numbers) Revenues (SEK million) • Empowering consumers +35% through transparency and simplicity 101 • Effective customer 75 acquisition for lenders 62 • Scalable into additional markets • So
Slide 26: Finance
FINANCE CU ee i eae
Slide 27: Q1 Income statement Schibsted Group
Finance Q1 Income statement Schibsted Group (NOK million) Q1 2017 Q1 2016 Operating revenues 4,000 3,883 Operating expenses (3,566) (3,462) Increase as a result of higher Gross operating profit (EBITDA) ex Investment phase 669 635 CAPEX related to product & Gross operating profit (EBITDA) 434 421 te
Slide 28: EBITDA improvement in all operating segments
Finance EBITDA improvement in all operating segments EBITDA ex Investment phase 700 640 661 600 500 467 NOK million 400 300 200 119 101 68 74 86 100 45 0 Q1 15 Q1 16 Q1 17 Q1 15 Q1 16 Q1 17 Q1 15 Q1 16 Q1 17 Online classifieds Media Houses Norway Media Houses Sweden Q1 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 Q1 External revenues, Million NOK, Pro forma, including proportionate share of JVs and associates growth in local currency +17%1 Revenue 2,000 80% growth Y/Y Re
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 • High investments in Q1 2017 as a result of strong pu
Slide 31: Key financial figures
Finance Key financial figures Earnings per share - adjusted Net cash flow from operating activities NOK NOK million 2.50 760 2.10 633 660 2.00 560 505 1.50 465 1.04 460 380 0.93 1.00 328 303 0.62 360 0.41 0.44 0.50 0.29 260 200 0.06 0.15 168 159 0.00 160 60 -0.50 -0.25 -40 -1.00 -18 Q414 Q115 Q215 Q
Slide 32: Underlying tax rate of around 30%
Finance Underlying tax rate of 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 Classifie
Slide 33: Telenor asset swap implies net payment of USD 400 million to Telenor
Finance Telenor asset swap implies net payment of USD 400 million to Telenor Net debt, gearing level (NOK million) • Debt financing 6,000 6 • Available funding • NIBD/EBITDA would have increased to 2.3 5,000 5 (end Q1 2017) if transaction was in place 4,000 4 • Gearing level well within capacity and
Slide 34: Highlights
HIGHLIGHTS
Slide 35: Q1 2017 Highlights
Q1 2017 HIGHLIGHTS • Increasing exposure to fast growing OLX Brazil to 50% and Yapo Chile to 100%. Creating strong cluster of Online classifieds leading positions in 5 LatAm markets • Continued solid revenue and EBITDA growth in Online classifieds Developed operations • High investments in Investmen
Slide 36: Appendices
APPENDICES Spreadsheet containing detailed Q1 2017 and Historical and analytical Information can be downloaded from www.schibsted.com/ir Q1 2017
Slide 37: Key operations – Online classifieds
Key operations – Online classifieds First quarter Year Norway Dev. phase (MNOK) 2017 2016 2016 Operating revenues 452 378 1,587 EBITDA 173 149 670 EBITDA margin 38 % 39 % 42 % First quarter Year Sweden Dev. phase (MSEK) 2017 2016 2016 Operating revenues 248 247 1,040 EBITDA 126 132 587 EBITDA margin
Slide 38: Key operations – Media Houses
Key operations – Media Houses Norway Sweden First quarter Year First quarter Year Verdens Gang (MNOK) 2017 2016 2016 Aftonbladet (MSEK) 2017 2016 2016 Operating revenues 431 428 1,700 Operating revenues 436 462 1,933 of which offline 226 266 1,017 of which offline 239 260 1,045 of which online 205 1
Slide 39: Revenue and EBITDA split Q1 2017
Revenue and EBITDA split Q1 2017 Revenue split EBITDA* ex Investment phase split Media houses Media Houses offline* 25 % 31 % Online classifieds 46 % Online classifieds 75 % Media houses online 23 % *) Media Houses offline include HQ, Other and eliminations *) EBITDA excluding HQ and Other operation
Slide 40: Cash flow
Cash flow First quarter (NOK million) 2017 2016 Profit (loss) before taxes 216 219 Gain on remeasurement in business combinations achieved in stages and - - remeasurement of contingent consideration Depreciation, amortisation and impairment losses 145 123 Share of profit of joint ventures and associ
Slide 41: Financial key figures
Financial key figures First quarter Full year Schibsted Media Group 2017 2016 2016 Gross operating profit (EBITDA) (NOK million) 434 421 2 131 Gross operating profit (EBITDA) ex. Investment phase (NOK million) 669 635 2 904 Operating margins (%): Operating margin (EBITDA) 11 11 13 Operating margin (
Slide 42: Capital structure
Capital structure First quarter Full year Schibsted Media Group 2017 2016 2016 Investments (NOK million): Operational investments (capex) 198 153 698 Shares and other holdings 479 62 751 Interest bearing borrowings (NOK million) 2,341 2,413 2,342 Net interest bearing debt (NOK million) 1,590 789 1,0
Slide 43: 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 (8 May 2017) 108,003,615 118,803,976 Treasury shares (8 May 2017) 268,484 351,960 Number of shares outstanding 107,735,131 118,452,016 Free float* 74% 76% *)
Slide 44: Shareholder analysis
Shareholder analysis % of Shareholders SCHA SCHB Rank Name A-Shares B-shares Total capital % of foreign shareholders** 58.0 % 54.5 % 1 Blommenholm Industrier AS 28,188,589 28,598,589 56,787,178 25.0% Number of shareholders 4,948 4,558 2 Baillie Gifford & Co. 10,826,111 8,176,668 19,002,779 8.4% Numb
Slide 45: 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.no +47 924 80 248 Schibsted ASA Apotekergata 10, P.O. Box 490 Sentrum, NO-0105 Oslo Tel: +47 23 10 66 00. E-m