Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Q1 2016 Earnings Presentation
49 slides from Vend Marketplaces Asa's earnings presentation, May 11, 2016
Slide 1: Q1 2016
Q1 2016 CEO ROLV ERIK RYSSDAL AND EVP CFO TROND BERGER 11 May 2016
Slide 2: Q1 2016 Highlights
Q1 2016 HIGHLIGHTS ■ Continued positive development for online classifieds ■ Strong revenue growth and solid margins in France and Spain ■ Steady growth and good margins in Scandinavia ■ Emerging markets growing well. High growth in traffic and engagement; monetization measures and reduced marketing
Slide 3: Agenda
AGENDA ■ Online Classifieds ■ Media Houses ■ Product & Tech ■ Finance ■ Summary Q1 2016 3
Slide 4: Continued growth in traffic – strong momentum in mobile migration
CONTINUED GROWTH IN TRAFFIC – STRONG MOMENTUM IN MOBILE MIGRATION Traffic growth European portfolio* Traffic growth outside Europe** Mobile share of total visits 1 200 200 70% Y/Y growth 9% in Q1 Y/Y growth 53% in Q1 180 1 000 60% 160 Million visits pr month Million visits pr month 140 50% 800 120 4
Slide 5: Solid revenue and EBITDA growth in online classifieds
SOLID REVENUE AND EBITDA GROWTH IN ONLINE CLASSIFIEDS +25%* Key established markets 1 637 +14% Revenues revenue growth Y/Y EBITDA ex Investment phase 1 313 19% FRANCE 1 154 Million NOK 1% NORWAY 650 12% SWEDEN 485 495 18% SPAIN Q1 14 Q1 15 Q1 16 External revenues, growth in local currency Pro forma,
Slide 6: Steady, high growth and high margins capturing real estate market shares
STEADY, HIGH GROWTH AND HIGH MARGINS CAPTURING REAL ESTATE MARKET SHARES France 60 +19% 80% ■ Continued progress in real estate 67% 69% 69% ■ 90% of P3 bundle customers signed direct 50 contract with Leboncoin by March 2016 60% 40 ■ Solid growth for car vertical driven by price Million EUR optimizat
Slide 7: Continued good growth in Spain – margins affected by marketing investments
CONTINUED GOOD GROWTH IN SPAIN – MARGINS AFFECTED BY MARKETING INVESTMENTS ■ 18% revenue growth in Q1 Y/Y Spain +18% 30 90% ■ Good revenue growth across all verticals and generalist driven by volume and price 20 60% ■ Good development for display ads Million EUR ■ Significant marketing investments p
Slide 8: Mixed volume development, better product mix and new products support growth
MIXED VOLUME DEVELOPMENT, BETTER PRODUCT MIX AND NEW PRODUCTS SUPPORT GROWTH Norway 400 +1% 80% ■ Positive development in volume and 350 revenues for cars 300 60% 250 ■ Decreased job volume due to oil and 42% Million NOK 40% 39% 200 40% gas industry slowdown. Revenue 150 effect mitigated by price 10
Slide 9: Solid growth in professional revenues
SOLID GROWTH IN PROFESSIONAL REVENUES Sweden 12% ■ Good revenue growth from by new verticals and 250 100% professional auto 200 80% ■ Low marketing spend and headcount savings in the quarter supports EBITDA margin Million SEK 57% 150 53% 60% 50% ■ New product launches and good traffic growth for mob
Slide 10: Accelerating rate of monetization in other developed operations
ACCELERATING RATE OF MONETIZATION IN OTHER DEVELOPED OPERATIONS Other developed operations Revenues (EUR million) ■ Accelerated growth in Other +42% developed operations 19 ■ Good growth momentum in 14 Italy, Austria and Ireland 10 ■ Double-digit – and improving – margins in Austria and Ireland ■ Co
Slide 11: Strong KPI growth in Brazil – monetization ramping up
STRONG KPI GROWTH IN BRAZIL – MONETIZATION RAMPING UP ■ Clear traffic leadership in online classifieds; Visits per month OLX Brazil 50% growth in visits Y/Y – despite significant 250 reduction in marketing 200 ■ Traffic volume second only to Leboncoin in the Schibsted portfolio* 150 ■ Clear market l
Slide 12: Continued targeted investment in the native app Shpock
CONTINUED TARGETED INVESTMENT IN THE NATIVE APP SHPOCK ■ Native app Shpock expands the online classifieds segment ■ Young demography ■ Easy and fast ad insertion ■ Different way of navigation ■ Investing in targeted markets – resulting in good growth ■ Gaining market share in Germany and UK; strong
Slide 13: Our users are environmental heroes
OUR USERS ARE ENVIRONMENTAL HEROES ■ The Second Hand Effect – a sustainability project across Europe ■ Schibsted has calculated the environmental benefit from secondhand trade ■ Five marketplaces, 46 million users Q1 2016 13
Slide 14: Potential positive effect in 2015
POTENTIAL POSITIVE EFFECT IN 2015 12.900.000 GREENHOUSE GAS
Slide 15: Media Houses
MEDIA HOUSES 15
Slide 16: VG and Aftonbladet capitalizing on outstanding reach in online news
VG AND AFTONBLADET CAPITALIZING ON OUTSTANDING REACH IN ONLINE NEWS ■ Good growth in digital VG+Aftonbladet Total reach 51% 45% subscribers. Aftonbladet 1000 60% has 231,000 and VG Million daily unique visitors 78,000 subscribers 800 50% 1.3 2.4 ■ Continued solid revenue 40% Million NOK 600 growth f
Slide 17: Good traction for digital subscriptions – total number of subscribers increased
SUBSCRIPTION NEWSPAPERS NORWAY GOOD TRACTION FOR DIGITAL SUBSCRIPTIONS – TOTAL NUMBER OF SUBSCRIBERS INCREASED Number of digital subscribers Total number of subscribers 80 000 360 000 70 000 2016 60 000 355 000 50 000 +2% Y/Y 40 000 350 000 30 000 20 000 345 000 2015 10 000 0 340 000 1 11 21 31 41 2
Slide 18: Increase in number of subscribers, significant decline in advertising
SUBSCRIPTION NEWSPAPERS NORWAY INCREASE IN NUMBER OF SUBSCRIBERS, SIGNIFICANT DECLINE IN ADVERTISING Revenue and EBITDA ■ Stable circulation revenues 1000 60% ■ Advertising still soft 50% 800 ■ Print advertising revenues -26% 40% Million NOK 600 ■ Online advertising revenues -12% 30% 400 ■ Operating
Slide 19: Panama papers
panama papers dokumentene ‘AV TIDENES STORSTE B . Ei aeoe Micgaten 2 @kokrim: IENTLEKKASJE Ring na, fa strafferabatt!
Slide 20: Schibsted Growth portfolio with good positions in fast growing segments
SCHIBSTED GROWTH PORTFOLIO WITH GOOD POSITIONS IN FAST GROWING SEGMENTS ■ Portfolio of strong online brands in Sweden and selected other markets ■ Continued good growth and margin enhancement for personal finance ■ Strong growth for price comparison after investments in market positions ■ Stabilizat
Slide 21: Broad-based growth and margin improvement for Schibsted Growth
BROAD-BASED GROWTH AND MARGIN IMPROVEMENT FOR SCHIBSTED GROWTH Schibsted Growth Sweden Indicative rough revenue split 300 30% 250 25% Hitta.se 200 24% 20% Million SEK 20% 150 18% 15% Personal finance 100 10% 50 5% Price - 0% comparison Q1 14 Q1 15 Q1 16 and other Hitta.se Schibsted Growth Other EBIT
Slide 22: Product & Technology
Tae PRODUCT & TECHNOLOGY “age
Slide 23: Investments in product & technology
INVESTMENTS IN PRODUCT & TECHNOLOGY Recap from Schibsted’s Q4 2015 presentation: Q1 2016 23
Slide 24: Product and tech investments help high pace of innovation (1)
PRODUCT AND TECH INVESTMENTS HELPS HIGH PACE OF INNOVATION IN ONLINE CLASSIFIEDS AND MEDIA HOUSES (1) Examples launched in the market Online classifieds innovation Blink Confirmed ID launched Utilizing big data to on Finn.no, ~370,000 Responsive site for target real estate and P2P test-launched on c
Slide 25: Product and tech investments help high pace of innovation (2)
PRODUCT AND TECH INVESTMENTS HELPS HIGH PACE OF INNOVATION IN ONLINE CLASSIFIEDS AND MEDIA HOUSES (2) Examples launched in the market Advertising and eco systems innovation innovation Advertising Self Serve Local Classifieds Generalist in Spain advertising Geographical targeting revamped and Opening
Slide 26: Innovations in pipeline for 2016 and beyond
INNOVATIONS IN ONLINE CLASSIFIEDS, ADVERTISING AND ECO SYSTEMS IN PIPELINE FOR 2016 AND BEYOND In the pipeline Online classifieds innovation ■ Global online classifieds platform – speed up innovation and rollouts ■ Improved messaging products – places the classifeds site closer to the transaction ■
Slide 27: Finance
FINANCE Q1 27 2016
Slide 28: Q1 income statement Schibsted Group
Q1 INCOME STATEMENT SCHIBSTED GROUP (NOK million) Q1 2016 Q1 2015 Operating revenues 3,883 3,694 Operating expenses 3,462 3,318 Gross operating profit (EBITDA) ex Investment phase 635 508 Gross operating profit (EBITDA) 421 376 NOK 450 million gain from Depreciation and amortization (123) (118) esta
Slide 29: EBITDA development in Q1
EBITDA DEVELOPMENT IN Q1 EXCLUDING INVESTMENT PHASE 43 (23) 12 (35) Million NOK 33 18 635 508 79 EBITDA OLC France OLC Norway OLC Spain OLC Other Media Houses Media Houses Other/HQ EBITDA Q1 2015 and Sweden Norway Sweden incl. product Q1 2016 and tech OLC = Online classifieds Q1 2016 29
Slide 30: Continued organic investments – steady growth in user metrics
CONTINUED ORGANIC INVESTMENTS – STEADY GROWTH IN USER METRICS Investment phase spend 39 EUR million ■ Main driver for investment spend is Mexico and Shpock. Significant potential for value 24 26 creation ■ Reduced investments in Brazil, Chile and early stage European markets Q1 14 Q1 15 Q1 16 Total,
Slide 31: Digital investments in 2016
DIGITAL INVESTMENTS IN 2016 Online • Continue to follow strategy to establish #1 positions in markets classifieds • Continued high investments in Shpock. Investment • Total investments (consolidated+JVs) of EUR 80-100 million phase New online product and • Around NOK 250-300 million included in EBIT
Slide 32: Key financial figures
KEY FINANCIAL FIGURES Earnings per share - adjusted Net cash flow from operating activities NOK NOK million 2,50 2,10 660 535 2,00 560 465 409 417 380 1,50 460 328 303 1,00 0,62 360 0,41 0,29 260 168 0,50 0,22 0,13 0,06 160 0,00 60 -0,50 -0,27 -0,25 -40 -0,34 -1,00 -140 -18 -61 Q413 Q114 Q214 Q314 Q
Slide 33: Underlying tax rate of around 31%
UNDERLYING TAX RATE OF AROUND 31% ■ 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 associated companies being reported net of tax ■ Unrecognised tax benefits from tax losses in Online classif
Slide 34: Stable, strong financial position
STABLE, STRONG FINANCIAL POSITION Debt maturity profile ■ Repayment of short term debt during Q1 3 000 2 500 ■ Diversified debt structure both by 2 000 maturity and sources 1 500 ■ Net Interest Bearing Debt 1 000 NOK 789 million 500 0 ■ NIBD/EBITDA* at 0.4x end of Q4 < 1 yr < 2 <3 <4 <5 >5 yrs yrs y
Slide 35: Dividend of NOK 1.75 proposed
DIVIDEND OF NOK 1.75 PROPOSED Dividend policy (summary) 2,5 Schibsted targets a pay-out ratio over time NOK per share in the range of 25% to 40% of cash flow 2 1,75 ■ A balanced dividend level in a period 1,5 of digital investment 1 ■ Equals NOK 395 million based on 0,5 total number of shares outsta
Slide 36: Key take-aways
KEY TAKE-AWAYS ■ Continued positive development for online classifieds ■ Strong revenue growth and solid margins in France and Spain ■ Steady growth and good margins in Scandinavia ■ Emerging markets growing well. High growth in traffic and engagement; monetization measures and reduced marketing inv
Slide 37: Save the date! Schibsted Investor Days 2016
SAVE THE DATE! SCHIBSTED INVESTOR DAYS 2016 LONDON 27 SEPTEMBER NEW YORK 28 SEPTEMBER Q1 37 2016
Slide 38: Appendices
APPENDICES Spreadsheet containing detailed Q1 2016 and Historical and analytical Information can be downloaded from www.schibsted.com/ir Q1 38 2016
Slide 39: Key operations – online classifieds
KEY OPERATIONS – ONLINE CLASSIFIEDS Q1 Q1 FY France (MEUR) 2016 2015 2015 Operating revenues 51.1 42.9 179.7 EBITDA 35.1 29.6 107.3 EBITDA margin 69 % 69 % 60 % Q1 Q1 FY Spain (MEUR) 2016 2015 2015 Operating revenues 26.8 22.8 99.0 EBITDA 3.9 2.2 22.6 EBITDA margin 15 % 10 % 23 % Q1 Q1 FY Norway Dev
Slide 40: Key operations – media houses
KEY OPERATIONS – MEDIA HOUSES Norway Sweden Q1 Q1 FY Q1 Q1 FY Verdens Gang (MNOK) 2016 2015 2015 Aftonbladet (MSEK) 2016 2015 2015 Operating revenues 428 458 1,817 Operating revenues 462 455 1,935 of which offline 266 296 1,186 of which offline 260 277 1,152 of which online 162 162 631 of which onli
Slide 41: Cash flow
CASH FLOW As of Q1 (NOK million) 2016 2015 Profit (loss) before taxes 219 846 Gain on remeasurement in business combinations achieved in - - stages and remeasurement of contingent consideration Depreciation, amortisation and impairment losses 123 124 Share of profit of joint ventures and associates,
Slide 42: Key financial figures
KEY FINANCIAL FIGURES Per Q1 Full year Schibsted Media Group 2016 2015 2015 Gross operating profit (EBITDA) (NOK million) 421 376 2,016 Gross operating profit (EBITDA) ex. Investment phase (NOK million) 635 508 2,560 Operating margins (%): Operating margin (EBITDA) 11 10 13 Operating margin (EBITDA)
Slide 43: Capital structure
CAPITAL STRUCTURE Per Q1 Full year Schibsted Media Group 2016 2015 2015 Investments (NOK million): Operational investments (capex) 153 129 460 Shares and other holdings 62 568 1,797 Interest bearing borrowings (NOK million) 2,413 2,752 2,683 Net interest bearing debt (NOK million) 789 2,467 792 Inte
Slide 44: Continued good growth of KPIs in investment phase portfolio
CONTINUED GOOD GROWTH OF KPIS IN INVESTMENT PHASE PORTFOLIO Approved new ads per day Investment phase portfolio +51% Y/Y* 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 *) The graph include figures for (alphabetical order): Avito.ma, Chotot, Jofog
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 (3 May 2016) 108,003,615 118,803,976 Treasury shares (3 May 2016) 293,011 411,933 Number of shares outstanding 107,710,604 118,392,043 Free float* 74% 76% *)
Slide 46: Shareholder register
SHAREHOLDER REGISTER As of 11 April 2016 Shareholders SCHA SCHB Rank Name SCHA SCHB Total Share % of foreign shareholders** 57.3 % 59.8 % 1 Blommenholm Industrier AS 28,188,589 28,598,589 56,787,178 25.0 % Number of shareholders 4,828 4,453 2 Folketrygdfondet 5,940,415 8,223,080 14,163,495 6.2 % 3 N
Slide 47: Shareholder analysis
SHAREHOLDER ANALYSIS Rank Nam e % of A Shares B Shares Total capital shares 1 Blommenholm Industrier AS 25.04 % 28,188,589 28,598,589 56,787,178 2 Baillie Gifford & Co. 8.48 % 9,293,876 9,880,934 19,174,810 3 Folketrygdfondet 6.27 % 5,940,415 8,223,080 14,163,495 4 Luxor Capital Group, L.P. 4.37 % 2
Slide 48: 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 Anders Christian Rønning IRO anders.christian.ronning@schibsted.no +47 916 05 660 Schibsted ASA Apotekergaten 10, P.O. Box 490 Sentrum, NO-0105 Oslo Te
Slide 49: The future is now
THE FUTURE IS NOW Q1 49 2016