Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Q2 2019 Earnings Presentation
46 slides from Vend Marketplaces Asa's earnings presentation, Jul 16, 2019
Slide 1: CEO Kristin Skogen Lund & CFO Trond Berger, 16 July 2019
CEO Kristin Skogen Lund & CFO Trond Berger 16 July 2019
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: Continued good development for key strategic areas
Continued good development for key strategic areas Solid progress Strong online Digital subscription for parts of Next: classifieds verticals revenue in News • Prisjakt +10% growth Media • Distribution +14%; home delivery increase triple digit YTD +11% +22% • Good growth in Lendo Sweden, positive st
Slide 4: Nordic Marketplaces: Targeting 8-12% revenue growth medium to long term
Nordic Marketplaces: Targeting 8-12% revenue growth medium to long term +11% growth for verticals, Blocket.se confirms growth trend despite tough comparables in Q2 2018 Finn and Blocket move towards transaction based model +6% 813 771 721 Other • Confirmed growth trend Display advertising in Blocket
Slide 5: Handling challenges in Lendo Norway and within digital advertising
Handling challenges in Lendo Norway and within digital advertising Continued fall Strong decline in display advertising in Lendo Norway for Aftonbladet - Using weak market to - Change in regulation in capture market share gaming advertising - Market expected to - Ongoing work to benefit from regulat
Slide 6: Lendo with significant growth potential
Lendo with significant growth potential Lendo growth opportunities Regulatory changes in Norway likely to be beneficial for the over time. Significant potential to expand the Similar measures already in place in Sweden Lendo platform geographically: • More comprehensive credit checks and stress test
Slide 7: Strong balance sheet and capital discipline
Strong balance sheet and capital discipline Net interest bearing Ongoing debt around zero ambition for Decision to initiate M&A and up to 2% share Targeting growth buyback in Q3 2019 NIBD/EBITDA* 1-3x investments *) NIBD = Net interest bearing debt (figures for Schibsted ex. Adevinta) Q2 2019 7
Slide 8: Digital revenue growth of 2%; EBITDA margin 17% (16%)
Digital revenue growth of 2%; EBITDA margin 17% (16%) Next: 59% ownership Nordic News Media Growth & Marketplaces Financial Services Revenues: 813m 1,911m 755m EUR 185m Revenue growth: 12% +6% -1% -2% +7% +4% +15% +13% EBITDA: 390m 229m 57m EUR 50m EBITDA change Y/Y (ex IFRS): 321m +8% (+5%) 150m +3
Slide 9: Nordic Marketplaces
NORDIC MARKETPLACES NORDIC MARKETPLACES
Slide 10: Growth curbed by Easter effect of 3-4%; solid margin development
Nordic marketplaces Growth curbed by Easter effect of 3-4%; solid margin development Norway Revenues (NOK million) and EBITDA margin 600 • 10% revenue growth in classifieds revenue, +7% display advertising returned to growth 500 • Growth driven by volume and ARPU 400 improvement in all three key ver
Slide 11: Revenue growth continues in Sweden
Nordic marketplaces Revenue growth continues in Sweden Sweden Revenues (NOK million) and EBITDA margin • Turnaround of Blocket shows good results; 300 underlying revenue growth 2% in local currency1 2%1 250 • 6% growth in professional car revenues 200 • 6% revenue growth in jobs 150 55% 53% • 6% rev
Slide 12: News Media
Photo: Ian Langson / EPA Photo: Geir Olsen / NTB scanpix NEWS MEDIA Photo: Frank Augstein / TT Nyhetsbyrån Photo: Christian Hartmann / X90079 12
Slide 13: Driving digital growth in News Media through quality journalism and product innovation
News Media Driving digital growth in News Media through quality journalism and product innovation • Continue to deliver agenda-setting journalism in all brands • Optimizing subscription products • Increasing value and product experience for every subscriber • ARPU improvement in all brands • Driving
Slide 14: Strong growth in digital subscription revenues and margin improvement
News Media Strong growth in digital subscription revenues and margin improvement News Media Revenues and EBITDA-margin (NOK million) 2,000 -2% 1,800 Digital circulation 1,600 revenues +22% 1,400 1,200 12% (10%) 1,000 11% 800 9% 600 Digitial advertising 400 200 -10% 0 Q2 17 Q2 18 Q2 19 Offline revenu
Slide 15: VG delivers good digital growth and stable margins
News Media VG delivers good digital growth and stable margins VG Strong growth in digital subscription revenues Revenues and EBITDA-margin (NOK million) Number of digital subscribers to VG+ 500 +2% 400 ARPU 185,750 153,627 +3% +21% 300 200 20% 19% 18% (18%) 100 0 Q2 17 Q2 18 Q2 19 As of Q2 18 As of
Slide 16: Aftonbladet delivers healthy growth in digital subscription revenues
News Media Aftonbladet delivers healthy growth in digital subscription revenues. Margin heavily affected by new regulations in gaming industry Aftonbladet More focus on loyal subscribers Revenues and EBITDA-margin (NOK million) Volume number of digital subscribers to Aftonbladet PLUS 500 -14% 282,82
Slide 17: Growing subscription numbers and ARPU coupled with tight cost control
News Media Growing subscription numbers and ARPU coupled with tight cost control result in increased margins Subscription based newspapers Strong growth in digital subscription Revenues (NOK million) and EBITDA margin revenue (Number of pure digital subscribers) 1,000 300,000 +13% 1% 900 800 700 200
Slide 18: Next: Growth & Financial Services
NEXT: GROWTH & FINANCIAL SERVICES Q2 2019 18
Slide 19: Lendo – continued growth in Sweden; market contraction in Norway
Financial Lendo – continued growth in Sweden; services market contraction in Norway due to regulatory changes Lendo Revenues (NOK million) and EBITDA margin • Good performance in Sweden; +10% in a stable and mature -1% regulatory environment 250 • Larger than anticipated slowdown in the Norwegian ma
Slide 20: Continued revenue growth in Prisjakt
Schibsted Growth Continued revenue growth in Prisjakt Prisjakt Group Revenues (NOK million) and EBITDA-margin • Strong growth supported 100 by growth in online retail 80 +10% • Margin decline due to low marketing spend in 60 Q2 2018 37% 26% 40 (24%) 7% 20 0 Q2 17 Q2 18 Q2 19 Revenues EBITDA margin (
Slide 21: Strong growth in innovative distribution operations
Schibsted Growth Strong growth in innovative distribution operations • Leveraging the traditional newspaper Strong growth in distribution of parcels distribution network – reaching 90% of through Schibsted’s network Norwegian households every morning* Million parcels +30% • Continued strong growth f
Slide 22: Q2 2019
Q2 2019 22
Slide 23: Adevinta Q2: 13% revenue growth and improved EBITDA margin
Adevinta Q2: 13% revenue growth and improved EBITDA margin Adevinta including proportionate share of JVs • France and Spain showing strong Revenues and EBITDA margin (EUR millions) revenue development in Q2 • High growth rates for verticals, weak 200 +13% development for display advertising • Increa
Slide 24: Schibsted will continue to be a supportive long-term owner of Adevinta
Schibsted will continue to be a supportive long-term owner of Adevinta • Schibsted ASA will continue to be an active, significant long-term owner of Adevinta – the global leading online classifieds company • Schibsted will exercise its ownership through representation on Adevinta’s Board of Director
Slide 25: Finance
ü FINANCE Q2 2019 25
Slide 26: EBITDA change Q2 18 – Q2 19 (NOK million)
Finance Schibsted excl. EBITDA change Q2 18 – Q2 19 (NOK million) Adevinta 12 (26) 557 518 17 (32) (11) 85 (7) 472 EBITDA Nordic News Financial Lendo Growth Other/HQ EBITDA IFRS 16 EBITDA Q2 2018 Marketplaces Media services expansion incl. product Q2 19 ex effect Q2 2019 established & tech IFRS 16 Q
Slide 27: Q2 income statement Schibsted ex. Adevinta
Finance Schibsted excl. Q2 income statement Schibsted ex. Adevinta Adevinta (NOK million) Second quarter Income statement 2018 2019 Operating revenues 3 191 3 216 NOK 85 million in positive IFRS 16 effect Operating expenses (2 673) (2 659) on operating expenses and EBITDA Operating profit (loss) EBI
Slide 28: Underlying tax rate
Finance Schibsted excl. Underlying tax rate Adevinta ■ The underlying tax rate, excluding Adevinta, is 24.7%. ■ The reported tax rate is 34% in the second quarter of 2019 ■ Generally, Schibsted reports a tax rate exceeding the applicable nominal tax rates primarily as an effect of losses for which n
Slide 29: Financial targets and policies
Finance Schibsted excl. Financial targets and policies Adevinta Nordic Revenue Nordic Marketplaces Marketplaces Targeting revenue growth of 8-12% for the segment in the medium to long-term News EBITDA News Media Media Stable EBITDA margin for the segment M&A M&A activities targeted primarily to stre
Slide 30: Ragnar Kårhus new CFO as of 1 September 2019
Ragnar Kårhus new CFO as of 1 September 2019 Ragnar Kårhus Jann-Boje Meinecke New CFO from 1 September 2019 New Head of IR from 1 November 2019 Previously CEO of Telenor Broadcast Currently VP Corporate FP&A (Financial Planning & Analysis) in Schibsted ASA CFO Trond Berger will exercise his early He
Slide 31: Key takeaways Q2 2019: Good financial and strategic progress
Key takeaways Q2 2019: Good financial and strategic progress • 11% growth in online classifieds verticals • 22% growth in digital circulation revenues and margin improvement in News Media • Solid progress for parts of Next, including Lendo Sweden and early signals from Lendo Denmark, Prisjakt and “n
Slide 32: Schibsted Media Group Q2 2019
E} SCHIBSTED MEDIA GROUP 02.2019
Slide 33: Appendices
APPENDICES Spreadsheet containing detailed Q2 2019 and historical and analytical information can be downloaded from www.schibsted.com/ir Q2 2019
Slide 34: Key operations
Finance Key operations Schibsted excl. Adevinta Nordic Marketplaces News Media Year to date (NOK million) Second quarter YoY Year to date (NOK million) Second quarter YoY 2018 2019 Marketplaces Norway 2019 2018 Δ% 2018 2019 VG 2019 2018 Δ% 911 1,021 Operating revenues 540 503 7% 902 898 Operating re
Slide 35: Key operations
Finance Key operations Schibsted excl. Adevinta Financial Services Growth Year to date (NOK million) Second quarter YoY Year to date (NOK million) Second quarter YoY 2018 2019 Lendo Group 2019 2018 Δ% 2018 2019 Distribution 2019 2018 Δ% 423 434 Operating revenues 205 208 -1 % 520 586 Operating reven
Slide 36: EBITDA, operating cash flow and CAPEX (ex. Adevinta)
Finance Schibsted excl. EBITDA, operating cash flow and CAPEX (ex. Adevinta) Adevinta EBITDA Operating cash flow CAPEX NOK million NOK million NOK million +8% -15% -26% 557 382 137 518 85 325 102 74 472 251 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 IFRS 16 effect Q2 2019 36
Slide 37: Cash flow Schibsted ex Adevinta
Finance Schibsted excl. Cash flow Schibsted ex Adevinta Adevinta (NOK million) Second quarter Cash flow 2019 Profit (loss) before taxes 266 Depreciation, amortisation and impairment losses 209 Net effect pension liabilities 5 Share of loss (profit) of joint ventures and associates, net of dividends
Slide 38: Q2 income statement Schibsted Group
Finance Consolidated Q2 income statement Schibsted Group figures (NOK million) Second quarter Income statement 2018 2019 Operating revenues 4,602 4,798 NOK 119 million in IFRS 16 effect on operating Operating expenses (3,707) (3,738) expenses and EBITDA Gross operating profit (loss) - EBITDA 895 1,0
Slide 39: Improved EBITDA in Q2 – consolidated figures
Finance Consolidated Improved EBITDA in Q2 – consolidated figures figures EBITDA change Q2 18-Q2 19 (NOK million) 1 060 119 12 941 (58) 895 17 (11) 92 (7) EBITDA Nordic News Financial Growth Other/HQ Adevinta EBITDA IFRS 16 EBITDA Q2 2018 Marketplaces Media services incl. product Q2 19 ex effect Q2
Slide 40: EBITDA, operating cash flow and CAPEX
Finance Consolidated EBITDA, operating cash flow and CAPEX figures EBITDA Operating cash flow CAPEX NOK million NOK million NOK million +18% -11% +15% 1,060 550 229 119 488 200 895 106 941 382 Q2 2018 Q2 2019 Q2 2018 Q2 2019 Q2 2018 Q2 2019 IFRS-16 effect Q2 2019 40
Slide 41: Cash flow Schibsted Group
Finance Consolidated Cash flow Schibsted Group figures (NOK million) Second quarter Cash flow 2018 2019 Profit (loss) before taxes 593 568 Depreciation, amortisation and impairment losses 300 308 Net effect pension liabilities 4 15 Share of loss (profit) of joint ventures and associates, net of divi
Slide 42: Underlying tax rate stable below 30%
Finance Consolidated Underlying tax rate stable below 30% figures ■ The underlying tax rate is stable, slightly below 30%. ■ The reported tax rate is 38% in the second quarter of 2019, compared to 47% in the same period in 2018. ■ Generally, Schibsted reports a tax rate exceeding the applicable nomi
Slide 43: Key financial figures - consolidated
Finance Key financial figures - consolidated Consolidated figures Earnings per share - adjusted Net cash flow from operating activities NOK NOK million 778 2,00 1,84 800 1,76 1,74 1,75 700 604 1,45 1,42 1,40 566 1,50 600 550 486 1,25 500 0,96 1,00 0,88 400 335 335 330 0,72 0,75 300 192 0,50 200 159
Slide 44: 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 108,003,615 130,684,373 Treasury shares (10 July 2019) 256,227 7,535 Number of shares outstanding 107,747,388 130,676,838 *) Total number of shares excluding
Slide 45: Shareholder analysis
Shareholder analysis Rank Name A-Shares B-shares Total % Shareholders SCHA SCHB 1 Blommenholm Industrier AS 28,188,589 29,518,589 57,707,178 24.2 % % of foreign shareholders 56.4 % 58.3 % 2 Folketrygdfondet 7,926,190 10,473,569 18,399,759 7.7 % Number of shareholders 3,992 4,262 3 Baillie Gifford &
Slide 46: 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 Akersgata 55, P.O. Box 490 Sentrum, NO- 0105 Oslo Tel: +47 23 10 66 00. E-ma