Vend Marketplaces ASA · OSL:VEND
Vend Marketplaces ASA — Schibsted — Investor Day (February 2012)
157 slides from Vend Marketplaces ASA's investor day presentation, Feb 28, 2012
Slide 1: Investor Day London 28 February 2012
oS. eee EDIA GROL London 28 February 2012
Slide 2: Agenda
Agenda Time Subject Speaker Start End 12:00 - 12:30 Light lunch 12:30 - 12:40 Opening remarks Ole Jacob Sunde, Chairman of the Board 12:40 - 13:10 Shaping the media of tomorrow. Today. Strategic Direction Rolv Erik Ryssdal, CEO 13:10 - 13:20 Q&A 13:20 - 13:50 Schibsted Classified Media - Creating Wi
Slide 3: Presenter biographies: Ryssdal, Berger, Munck
Rolv Erik Ryssdal, CEO Rolv Erik Ryssdal became CEO of Schibsted on 1 June 2009. He joined the Schibsted Group in 1991 and has held several management positions including CEO of Aftonbladet (1999-2005), CEO of VG (2005-2008) and CEO of Schibsted Classified Media, the holding company for our internat
Slide 4: Presenter biographies: Seljeseth, Munch
Terje Seljeseth, CEO Schibsted Classified Media In October 2009, Terje Seljeseth took up the position as CEO of Schibsted Classified Media (SCM), the holding company for Schibsted’s international online classifieds operations. At the same time, he became a member of Schibsted’s Group Management Team
Slide 5: Shaping the Media of Tomorrow. Today
Shaping the Media of Tomorrow. Today Rolv Erik Ryssdal, CEO
Slide 6: 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 7: Global leader in online classifieds, strong cash flow from Media Houses
Global leader in Online 1 classifieds Strong cash flow from Media 2 To get back, Houses Seizing the Scandinavian online 3 opportunity SIFICED’ via icking off the 3
Slide 8: Building on two solid cornerstones
The Schibsted fundament Building on two solid cornerstones To get back, Online Classifieds Media Houses 14.4 billion in revenue 25 countries 7,200 employees SIFICED’ via icking off the 4
Slide 9: Well-managed digital transition: online growth
Well-managed digital transition Online growth Online share 14,4 15,2 % Revenue To get back, 8,0 8,3 % EBITDA 2001 2001 2011 2007 2001 2011 5
Slide 10: International expansion
Well-managed digital transition International expansion Gradually built a strong European position over the past 10 years To get back, Selective approach in large growth markets in Asia Pacific and Latin America SIFICED’ via icking off the 6
Slide 11: Shaping the Media of Tomorrow. Today. People with values
Shaping the Media of Tomorrow. Today. People with values We have integrity We are innovative To get back, We are a team We are here to win SIFICED’ via icking off the 7
Slide 12: A global leader in Online classifieds
A global leader in Online classifieds 8
Slide 13: Global #1 in Online Classifieds
Ambitious target in a major market: Global #1 in Online Classifieds Portfolio with strong inherent growth profile Upsides in optimization Targeted M&A To get back, and ―best practice‖ sharing Greenfield Investments Investing in growth both Maturing of investment stage sites organically and thr
Slide 14: The winners take it all
Online classifieds The winners take it all EBITDA margin Players that are much larger than #2 100% reap higher margins 50–70% To get back, 30–50% 5–30% Sources: 0% EBITDA margin 2010: Company reports and presentations 1x 3—5x 8—10x Size vs #2: Pageviews(AdPlanner), Size versus second player active o
Slide 15: Online classifieds portfolio structure
Online Classifieds Portfolio structure 3 years 5 years Return To get back, Profitability Time Two new sites in profitable Established Investment phase as of Q1 2012 Start-up Traction Established SIFICED’ via Operations in investment phase Operations in established phase icking off the 11
Slide 16: Economies of scale key to global success
Online Classifieds Economies of scale key to global success Joint concept and product development Marketing of the sites To get back, Site roll-out planning Price optimization Establishing new verticals Enhancing return - reducing risk 12
Slide 17: Investing in the race to become #1
Online Classifieds Investing in the race to become #1 The window of opportunity is still open to create leading sites Strategic approach, built To get back, on broad set of criteria Market size, growth and wealth Online penetration and growth Competition and market risk Evaluating greenf
Slide 18: Solid growth and high margins
Online Classifieds targets: Solid growth and high margins Online Classifieds ex. Hitta Current portfolio set for 4 000 80 % 15%-20% annual growth 3 500 70 % rate 3 000 60 % Growth upside from new 2 500 46 % 50 % 44 % investments and NOK mill To get back, 2 000 38 % 40 % acquisitions 1 500 30 %
Slide 19: Media Houses Scandinavia
Media Houses Scandinavia SCHIBSTED MEDIA GROUP
Slide 20: Strong regional market leader
Media Houses Strong regional market leader Subscription based Single Copy Norway: #1 #1 Sweden: #2 #1 To get back, Leading brands - quality journalism Strong media reach – print and online Powerful traffic drivers – launch pads for new services Solid cash flow – fully invested in traditional media S
Slide 21: Strategic direction and actions
Media Houses Strategic direction and actions Single Copy newspapers • Product development and focus on quality journalism • Optimize price and circulation To get back, • Adjust cost base • Develop online positions – including user paid products Subscription newspapers • Product development and focus
Slide 22: Well positioned in growing online market
Media Houses Well positioned in growing online market Strong positions in both the 500 Advertising trends Print print and online domains 400 Print advertising is cyclical and NOK million 300 in structural decline 200 Scandinavia stands out, as 100 To get back, print holds up better despite 0 w
Slide 23: Continued high cash generation
Media Houses Outlook Continued high cash generation Media House – EBITDA and Capex Well positioned, highly 1 600 cash generative and fully 1 400 invested in traditional 1 200 1 384 1 313 media 1 114 1 094 1 000 To get back, Expecting flat to slightly 800 NOK million declining revenue 600 Multi
Slide 24: Seizing the Scandinavian Online Opportunity
Seizing the Scandinavian Online Opportunity 20
Slide 25: Building high-margin businesses
New Online Opportunities Building high-margin businesses To get back, Online Growth Media Houses Media Online Classifieds LEVERAGING OUR STRONG MARKET POSITIONS SIFICED’ via icking off the 21
Slide 26: Initial focus on Personal Finance
New Online Marketplaces Initial focus on Personal Finance To get back, 22
Slide 27: Efficient Traffic Fund Models
New Online Marketplaces Efficient Traffic Fund Models To get back, SIFICED’ via icking off the 23
Slide 28: Payment solutions: new lever of online traffic footprint
Payment Solutions New lever of online traffic footprint Single sign on and payment model for all Schibsted sites in Scandinavia Online classifieds, market To get back, places, online newspapers Easier payment of digital content and classifieds items Opening access to online classifieds trans
Slide 29: Summing Up
Summing Up SCHIBSTED MEDIA GROUP
Slide 30: Key takeaways
Strategic direction Key takeaways Online Growth To get back, Online Classifieds Media Media Houses Continued profitable Seizing the digital Focus on cash flow growth growth opportunity Manage structural in core markets Targeting global challenges in print leadership Building digital revenue models S
Slide 31: Schibsted Media Group Investor Day 2012
oS. SCHIBSTED MEDIA GROUP Investor Day 2012
Slide 32: Schibsted Media Group
ey SCHIBSTED MEDIA GROUP
Slide 33: Schibsted Classified Media: Creating Winners
Schibsted Classified Media Creating Winners Terje Seljeseth, CEO Schibsted Classified Media
Slide 34: Global #1 in Online Classifieds
Ambitious 3-5 year target: Global #1 in Online Classifieds Targeted M&A Optimizing of To get back, established operations Maturing of investment stage sites “Best practice” sharing Greenfield Investments Base Camp 2
Slide 35: Online Classifieds
Online Classifieds @Dleboncoin.fr informatique Toute a France -offes Accueil | Béposer une annonce | Offres | Demandes | Mesannonces | Compte Pro | Aide iformatone Tel |Toae is Face (ayerer ‘Trrecherce dons le tre urigverent 51 Amonces urgentes * uniquement Pcmin__[=] cage goat: == Foxman} E > Comme
Slide 36: Not only migration
Not only migration Revenues from car classifieds 300 Aftenposten FINN.no 250 200 To get back, 150 100 50 - 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 4
Slide 37: Not only migration but also finding new revenues
Not only migration but also finding new revenues Revenues from car classifieds Revenue FINN Torget 300 300 Aftenposten FINN.no 250 250 200 200 To get back, 150 150 100 100 50 50 - 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 5
Slide 38: Mobile is also a migration we will handle
- 10 000 000 12 000 000 14 000 000 16 000 000 18 000 000 2 000 000 4 000 000 6 000 000 8 000 000 2010 v28 2010 v30 2010 v32 2010 v34 2010 v36 2010 v38 2010 v40 2010 v42 2010 v44 2010 v46 2010 v48 2010 v50 2010 v52 Visits per Week, Blocket.se 2011 v02 Web 2011 v04 2011 v06 2011 v08 2011 v10 2011 v12
Slide 39: Schibsted Media Group
SCHIBSTED MEDIA GROUP
Slide 40: History of growth
History of growth 3500 3000 2500 2000 MNOK To get back, 1500 1000 500 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Revenue MNOK SIFICED’ via icking off the 8
Slide 41: Already a strong position
Already a strong position 30 25 Billion page views/month 20 To get back, 15 10 5 0 Naspers Ebay Schibsted Craigslist.org Classifieds Classifieds SIFICED’ via Doubleclick Ad Planner January 2012 icking off the 9
Slide 42: Our creating winners pipeline
Our “creating winners” pipeline Launch Startup Traction Established 10
Slide 43: Launch, Startup, Traction, Established
To get back, Launch Startup Traction Established SIFICED’ via icking off the 11
Slide 44: World class organization
World class organization To get back, • Autonumeus local • Systematic best • Systematic strategy companies practice sharing implementation SIFICED’ via icking off the 12
Slide 45: Startup Traction Established cost phases
Low cost High cost Medium cost Profit To get back, Launch Startup Traction Established SIFICED’ via icking off the 13
Slide 46: Portfolio management
Portfolio management To get back, Launch Startup Traction Established SIFICED’ via icking off the 14
Slide 47: The growth continues
The growth continues To get back, Launch Startup Traction Established SIFICED’ via icking off the 15
Slide 48: CustoJusto and Jofogas ready for Traction Phase
CustoJusto and Jofogas are ready to move up to the Traction Phase Custojusto.pt Olx.pt Jofogas.hu Vatera.hu Coisas.com Miau.pt Aprod.hu Expressz.hu 120 000 000 250 000 000 100 000 000 200 000 000 To get back, 80 000 000 150 000 000 60 000 000 100 000 000 40 000 000 20 000 000 50 000 000 - - mar.09 m
Slide 49: Subito and Willhaben ready for Established Phase
Subito and Willhaben are ready to move up to the Established Phase Willhaben.at eBay.at Subito.it Bakeca.it eBay.it Kijiji.it Bazar.at Kijiji.at 1 200 000 000 300 000 000 1 000 000 000 250 000 000 To get back, 800 000 000 200 000 000 600 000 000 150 000 000 400 000 000 100 000 000 200 000 000 50 000
Slide 50: Knowing when we are about to hit a home run
Experience has taught us to know when we are about to hit a home run 18
Slide 51: Huge upside if we succeed
Huge upside if we succeed 2011 Revenues per Internet Universe * per country, Internet User* Millions Brazil 79 France 49 EUR 32 Italy 37 Spain 31 To get back, Mexico 31 Indonesia 19 Malaysia 16 Philippines 8 EUR 10 Switzerland 8 Belgium 8 Sweden 8 Romania 8 Chile 7 Hungary 6 EUR 1,3 Austria 6 Portug
Slide 52: Summary
Summary Launch team in Stockholm analyze the markets, launch test platforms and conducts planned experiments Systematic evaluation of strategies for sites in the four stages of development based on earlier successes and failures To get back, Continuous evaluation of portfolio ensures optimal u
Slide 53: Schibsted Media Group Investor Day 2012
oS. SCHIBSTED MEDIA GROUP Investor Day 2012
Slide 54: FINN.no: Further growth for an established market leader
FINN.no Further growth for an established market leader Christian Printzell Halvorsen CEO FINN.no
Slide 55: Key takeaways
Key takeaways FINN is strengthening an already strong position Future growth will come from optimization of To get back, existing marketplaces, development of new marketplaces and mobile expansion Building a high-performance innovation culture to attract talent and sustain future growth SIFICE
Slide 56: FINN's position in the everyday life of Norwegians
FINN has an impressive position in the everyday life of Norwegians Brand awareness: 96% aided / 82% unaided 2011 2,5-3,1 million unique visitors per week. Norway’s 2nd-3rd largest website. To get back, 471 200 076 visits on FINN or 96 visits per Norwegian 3 988 618 days spent on FINN or 18.5
Slide 57: Strong positions in all verticals
Strong positions in all verticals Vertical Position Market share Jobs #1 ~75% of advertised positions1 Real estate #1 ~100% of homes for sale2 To get back, Cars #1 ~90% of used cars sold3 General merchandise #1 65-85% of online traffic4 Travel #2 2-50% of bookings / ads5 Services / craftsmen #1-2 ~4
Slide 58: Steady growth and strong, stable margins
Steady growth and strong, stable margins FINN revenues, MNOK EBITDA margin, % +24% 1.200 46 46 48 50 45 45 43 41 42 1.000 39 36 40 800 30 600 1.135 17 948 20 400 738 691 173 576 200 100 133 398 10 43 63 267 0 0 -200 -16 - 10 -400 -600 - 20 2000 2001 2002 2003 2004 2005 2006 2007 2008* 2009* 2010 201
Slide 59: FINN's position comparable to Google in the US
In Norway, FINN’s position is comparable to Google’s online dominance in the US ESTIMATE FINN financials 2011 Google financials 2011 per capita, USD (US only*) per capita, USD Revenues 40 57 EBITDA 19 18 Note: Comparable results for Google (globally) in 2011 were 37,9 billion USD in revenues and 11,
Slide 60: Growth in all verticals in 2011
Growth in all verticals in 2011 FINN revenues, MNOK 2009 2010 2011 299 265 Growth drivers: 220 219 230 To get back, 216 Continued volume growth 196 167 159 Price optimization 116 110 New and improved 94 86 products 72 63 31 38 Jobs Cars Real General Travel Services Estate* merch. Established vertica
Slide 61: Future growth areas
Future growth areas 1 Optimize existing marketplaces 2 Establish new marketplaces To get back, 3 Mobile / multichannel 4 ”The marketplace graph” World class processes: 5 Innovation and Sales SIFICED’ via icking off the 8
Slide 62: Optimize existing marketplaces
1 Optimize existing marketplaces Examples • Price increases / decreases on C2C ads Conservative • Enhanced contract structures price optimization • Price differentiation and upsell products To get back, • Property projects / new homes Subverticals • Commercial properties • Aftermarket service for ca
Slide 63: SIFICED’ via
To get back, SIFICED’ via icking off the 10
Slide 64: FINN tied for lead in services for craftsmen
After 1 year, FINN is tied for the lead in 2 the services for craftsmen market ESTIMATE Marketshare, % of job quote requests 70 % 60 % 50 % To get back, 40 % Mittanbud FINN oppdrag 30 % Anbudstorget Gulesider 20 % 10 % 0% jan.11 feb.11 mar.11 apr.11 mai.11 jun.11 jul.11 aug.11 sep.11 okt.11 nov.11 d
Slide 65: Penger.no product
ET PRODUKT FRA we PENGER.NO SKAFF BOLIGLAN ENKLERE! V EN SOKNAD - TILBUD FIRA INNTIL TRE BANKER DU SELV VELGER V BRUK VAR KALKULATOR, RENTEBAROMETER AAA V GRATIS v TRYGT Jeg onsker boliglan —> Jeg onsker lanebevis —> Kontakt meg for FA tilbud fra inntil 3 banker FA tilbud fra inntil 3 banker samtale
Slide 66: Penger.no shows a promising start
Penger.no shows a promising start. 2 Car insurance to be launched Q2 2012 Weekly unique visitors 30000 25000 20000 15000 10000 5000 0 40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6 Week 13
Slide 67: Mobile opportunities and risks
Mobile opportunities and risks. 3 >50% of visits from new channels by 2015 ESTIMATE Growth projection FINN.no Desktop and Mobile channels 90 000 000 Today = 17% 80 000 000 To get back, 70 000 000 User sessions / month 60 000 000 50 000 000 40 000 000 Mobile 30 000 000 Desktop 20 000 000 10 000 000 0
Slide 68: Mobile innovation is priority #1
Mobile innovation is priority #1. 3 Several products in pipeline 15
Slide 69: The marketplace graph
”The marketplace graph”: 4 Verticals tied together by user data Volksvagen Passat “The mapping of everybody, all goods and services, and how they interact in the marketplace” Has testdriven USA july 2012 2 adults To get back, + 2 children Searching for Works at John FINN.no Owns Sells Owns Rating: 3
Slide 70: Building a strong innovation culture
Building a strong innovation 5 culture to sustain future growth FINN way of innovation FINNopp innovation tool FINN labs To get back, FINNovation hackathon FINN sandbox FINN awards SIFICED’ via icking off the 17
Slide 71: Awarded best place to work in Norway
Awarded ”best place to work” in Norway. 5 Focus on performance culture to attract talent To get back, GPTW? SIFICED’ via icking off the 18
Slide 72: Key takeaways
Key takeaways FINN is strengthening an already strong position Future growth will come from optimization of To get back, existing marketplaces, development of new marketplaces and mobile expansion Building a high-performance innovation culture to attract talent and sustain future growth SIFICE
Slide 73: Schibsted Media Group
ey SCHIBSTED MEDIA GROUP
Slide 74: Leboncoin.fr: Number 1 in French online classifieds
Leboncoin.fr Number 1 in French online classifieds Olivier Aizac, CEO Leboncoin.fr
Slide 75: Leboncoin.fr: what is this?
Leboncoin.fr : what is this ? To get back, SIFICED’ via icking off the 2
Slide 76: What is Leboncoin.fr?
What is Leboncoin.fr? A free generalist 39,5 % reach in French classifieds website internet population To get back, More than 18 million ads Blocket.se French little online sister launched in April 2006 6 billion page views per month The #1 online player #1 position in Cars, Real Estate and Go
Slide 77: Leboncoin.fr is the biggest market place in France
Leboncoin.fr is the biggest market place in France Page Views per Month, Google Ad Planner 7 000 000 000 Leboncoin.fr eBay.fr 6 000 000 000 5 000 000 000 To get back, 4 000 000 000 3 000 000 000 2 000 000 000 1 000 000 000 0 okt.09 okt.10 okt.11 feb.09 mar.09 feb.10 mar.10 feb.11 mar.11 apr.09 mai.0
Slide 78: The clear #1 player in cars
The clear #1 player in cars Number of cars in the database – Autobiz, Dec 2011 900 000 812 981 800 000 700 000 600 000 500 000 400 000 To get back, 271 768 300 000 200 000 102 217 98 155 97 993 93 003 89 163 87 658 100 000 66 900 57 823 38 887 25 170 - AutoScout24 Autoreflex announcesjaunes ParuVend
Slide 79: Steady growth over 6 years
+404% +223% +67% +39% +26% Steady growth over 6 years UIP / day – monthly average 4 000 000 3 469 000 3 500 000 3 000 000 2 756 000 To get back, CAGR 2 500 000 116% 1 979 000 2 000 000 1 500 000 1 188 000 1 000 000 500 000 368 000 73 000 0 12/2006 12/2007 12/2008 12/2009 12/2010 12/2011 SIFICED’ via
Slide 80: Leboncoin.fr is in the top 5 websites in France
Leboncoin.fr is in the top 5 websites in France Google DoubleClick Adplanner – January 2012 facebook.com 39 000 000 000 orange.fr 10 000 000 000 live.com 6 400 000 000 To get back, leboncoin.fr 6 400 000 000 youtube.com 3 600 000 000 sfr.fr 1 700 000 000 msn.com 1 300 000 000 yahoo.com 1 300 000 000
Slide 81: One of Schibsted's most important growth drivers
One of Schibsted’s most important growth drivers 100 100 % 76% 80 61 % 70 % 80 % revenue Million EUR To get back, 60 60 % 47 % growth Y/Y in 40 40 % 2011 20 20 % 0 0% 2009 2010 2011 Revenue EBITDA margin 8
Slide 82: Most recognised brand for online classifieds in France
Most recognised brand for online classifieds in France Top of Mind Unaided Aided Leboncoin.fr 40,0 % 59,2 % 85,8 % Ebay 21,4 % 45,0 % 83,4 % Priceminister 1,6 % 8,4 % 64,0 % Paruvendu 2,2 % 7,0 % 78,2 % Topannonces 3,6 % 51,2 % Vivastreet 0,4 % 4,4 % 29,2 % Annoncesjaunes 0,0 % 29,6 % Logicimmo 0,2
Slide 83: High media awareness
High media awareness : More than 2000 press clippings in 2011 10
Slide 84: The 2nd most searched word on google.fr
The 2nd most searched word on google.fr To get back, SIFICED’ via icking off the 11
Slide 85: How did we get here?
How did we get here? SCHIBSTED MEDIA GROUP
Slide 86: A true child of the Schibsted roll out strategy
A true child of the Schibsted roll out strategy Launched in April 2006 French little sister of Blocket.se 50/50 Joint Venture To get back, Between Schibsted and Spir Communication Schibsted acquired Spir’s shares in November 2010 Valuing the company at EUR 400 million (100% basis) 13
Slide 87: Why do 14 million French spend time on leboncoin?
Why do 14 million French spend their spare time on leboncoin? 12 years of experience Simple A millennium in Internet Placing an ad only takes a history few minutes. No subscription, Easy few criteria, no payment To get back, Immediate result in a single Quality click Ads are checked
Slide 88: A long-term business model
A long-term business model A real focus on user experience Online classifieds is a competitive market Agile and pragmatic business models To get back, Adapt to the competition and environment Technical competence and autonomy The site is constantly tuned to market needs Entrepreneurial
Slide 89: From a start-up to full-service company
From a start-up to full-service company Focus on product teams over the first years 12/2012 Build up local sales 145 To get back, team and F&A 12/2011 88 In-source national sales 12/2010 team and strengthen all departments 41heads
Slide 90: Focus on diversifying revenues
Focus on diversifying revenues Local advertising Insertion Partnerships fees To get back, B2C National services advertising B2B services SIFICED’ via Business is growing through many revenues lines icking off the
Slide 91: Mobile – a fast rolling train
Mobile – a fast rolling train iPhone app launched in December 2011 Already 1,3 million downloads To get back, Developments on Android is next step Clear direction to improve user experience and simplicity of use Clear target: Get same position on mobile as on the web
Slide 92: Schibsted Media Group
ey SCHIBSTED MEDIA GROUP
Slide 93: Media Houses Scandinavia
Media Houses Scandinavia Didrik Munch, CEO Schibsted Norge
Slide 94: What we do
POSITIONS What we do ACTIONS PLANS PROFITABILITY TRANSFORMATION IN PRINT TO DIGITAL To get back, SIFICED’ via icking off the 2
Slide 95: Market leaders in Scandinavia
POSITIONS Market leaders in Scandinavia ACTIONS PLANS Local presence Number one positions in the most affluent cities in browser, mobile, print No. 1 single copy paper No. 1 in web TV NORWAY 1 No. 1 site by traffic No. 1 mobile site Bergen Oslo 1 Stavanger No. 1 subscription paper Kristans
Slide 96: Not in Anglo-American decline
POSITIONS Not in Anglo-American decline ACTIONS PLANS Scandinavian economies … but maintain continuously high are well connected… print newspaper readership and advertising revenues Circulation (volume) Advertising (revenue) Mobile subs (1) SUBSCRIPTION pr capita -10% -11% SCHIBSTED PAPERS Scandinav
Slide 97: Cooperation and tightening creates leaner media houses
POSITIONS Cooperation and tightening ACTIONS creates leaner media houses PLANS Loose coordination, Tight cooperation and Focused media houses redundant functions centralized support units with light backbones To get back, MEDIA HOUSES IN 2008, MEDIA HOUSES NOW, ROOM TO IMPROVE PRIOR TO MERGERS AFTER
Slide 98: Operationally focused – emphasizing improvement
Operationally focused – POSITIONS ACTIONS emphasizing improvement PLANS WILL DO Offshore digital development DOING in Poland Increased outsourcing Pooling resources in online DONE development Centralization of support To get back, functions Sales cooperation in Norway Centralized IT infr
Slide 99: A smart approach to content sharing
POSITIONS A smart approach ACTIONS to content sharing PLANS Local for local All for one Most content Aftenposten’s purely local exclusive coverage of Written for and Wikileaks’ US by residents Embassy Cables To get back, BT road deaths 22 July terror special feature attack BT workout sit
Slide 100: Committed to profitability
POSITIONS Committed to profitability ACTIONS - and to offset inflation and wage growth PLANS EBITDA for online and print news, subscription papers in Norway ONLINE NEWS PRINT NEWS PRINTING PLANTS 50 500 500 MAINTAIN 483 To get back, 400 400 18 410 0 -18 300 300 233 -55 200 200 MAINTAIN -50 100 100 7
Slide 101: Improvements keep cash flow, transformation assures future
POSITIONS Improvements keep cash flow, ACTIONS transformation assures future PLANS Cost adaptation Profitability in print To get back, Price hikes Mobile growth Growth in digital Online commercialization Emerging user payment SIFICED’ via icking off the 9
Slide 102: Levers to pull to respond to structural challenges
POSITIONS We have levers to pull to ACTIONS respond to structural challenges PLANS Ongoing cost program in Norway despite advertising Taken out 420 FTEs and NOK 500m from Norwegian growth and margin expansion: subscription papers since merger in 2008 We stay ahead COST AND PERSONNEL DISCIPLINE FTE R
Slide 103: Pricing is an upside
POSITIONS Pricing is an upside ACTIONS – partly offset circulation decline for years PLANS MON-THURSDAY FRI-SUNDAY To get back, COMPETITION 16.3 kr 20 kr +25% SCHIBSTED 13 kr +54% 20 kr Example: Single copy papers, Norway. Average prices weekdays SIFICED’ via and weekends icking off the 11
Slide 104: Offshore development teams
POSITIONS Offshore development teams – ACTIONS critical mass and cost efficiency PLANS Cost effiency in offshore units Facing recruitment constraints on top talent ”Home” development team Currently setting up development unit in HOME 1 : 1 Krakow, Poland to leverage top university environment and em
Slide 105: Transferring print and browser positions to mobile
POSITIONS We are able to transfer print and ACTIONS browser positions to mobile PLANS Strong mobile user growth Revenues following suit VG ahead of the pack last twelve months 5 000 Weekly page views Monthly revenues 18,0 4 000 NOK Thousands 3 000 12,0 Million 2 000 6,0 1 000 0,0 0 48 52 4 8 12 16 2
Slide 106: Real effect to advertisers is key to monetizing mobile
POSITIONS Real effect to advertisers ACTIONS is key to monetizing mobile PLANS Tirsdag morgen Monday morning Tuesday morning 14
Slide 107: Emerging user payment
POSITIONS Emerging user payment ACTIONS Aftonbladet Plus 134.200 subs. PLANS 15
Slide 108: Defend positions, safeguard profitability
POSITIONS We will defend our positions ACTIONS and safeguard profitability, PLANS whilst growing on new platforms Brands and products that grow in mobile To get back, and user payment Willingness and ability to sustain profitability Strong 1 positions for the long run SIFICED’ via icking off the 16
Slide 109: We're committed
POSITIONS Key takeaway: ACTIONS We’re committed PLANS To get back, DISCIPLINE COMMITTED TO TRANSFERRING ON THE COST SIDE SUSTAIN CASH FLOWS POSITIONS TO MOBILE • Maintain cost at current real levels by keeping cost discipline • Ensure a stable cash flow from traditional channels across the business
Slide 110: Schibsted Media Group Investor Day 2012
oS. SCHIBSTED MEDIA GROUP Investor Day 2012
Slide 111: Leveraging our digital assets to create additional value
Leveraging our digital assets to create additional value Sverre Munck, Executive Vice President
Slide 112: 2 ways of building additional value
2 ways of building additional value: Schibsted Growth Media – leveraging our digital traffic to launch new services back, Schibsted Payment – leveraging our customer base to increase ARPU 2
Slide 113: Schibsted Growth Media
Schibsted Growth Media – leveraging our digital traffic to launch new services To get back, SIFICED’ via icking off the 3
Slide 114: Strategic development
Strategic development • Going from print news/classifieds, to online news/classifieds, to a broader online position To get back, SIFICED’ via icking off the 4
Slide 115: Strategic objectives
Strategic objectives ✓ Use our national presence and traffic to secure future opportunities in the online space. To get back, ✓ Maximize the use of our network of sites to drive overall traffic and profit growth. ✓ Mature local concepts into international success stories SIFICED’ via icking off the
Slide 116: Every week: weekly reach
Every week To get back, SIFICED’ via Source: Orvesto Internet, net reach Schibsted Sweden 2010 Aftonbladet, Blocket, Hitta.se, Prisjakt, SvD,, Tasteline, E24, TV.NU icking off the 6
Slide 117: SIFICED’ via
To get back, SIFICED’ via icking off the 7
Slide 118: Traffic vs ARPU
Traffic vs ARPU • Companies with large audiences often have very low ARPU- levels. • Companies with high ARPU-levels struggle to build enough audience. To get back, SIFICED’ via icking off the 8
Slide 119: Our Online Traffic Fund Model
Our Online Traffic Fund Model An incentivised model to turn TRAFFIC into VALUE To get back, SIFICED’ via icking off the 9
Slide 120: Investment Criteria
Investment Criteria Priority Criteria 1 Growth potential, aiming for the # 1 spot. 1 Entrepreneurial culture Schibsted’ s value building potential 1 2 Product focus 2 Revenue/business model 2 Lock-in effects 2 Platform synergies 2 Strategic focus 2 Social Media/Communities 1 0
Slide 121: Investment stage
Investment stage: We buy to scale revenues and traffic We focus on small companies with: A working product with clear value to the users To get back, A proven revenue model Start Growth Maturity Stabilization Decline SIFICED’ via icking off the 11
Slide 122: First acquisition: Bytbil.com
First acquisition… Bytbil.com Acquired in 2002 Car Classifieds back, Profitable same year we acquired them Market leader 12
Slide 123: Second acquisition: Blocket.se
Second acquisition... Blocket.se Acquired in 2003 General classifieds portal back, Market leader International potential 13
Slide 124: Third acquisition: Hitta.se
Third acquisition... Hitta.se Acquired in 2005 Directory services (white & yellow pages) back, Strong competitor to telco incumbent Eniro. 14
Slide 125: And today we are
And today we are ……. To get back, * * SIFICED’ via * Part of SCM icking off the 15
Slide 126: TvM revenues and EBITDA incl. Hitta
TvM Revenues and EBITDA incl. Hitta are already significant Revenues and EBITDA, Schibsted Tillväxtmedier [MNOK] 835 CAGR 08-11: +36% To get back, 656 511 335 101 117 25 -18 2008 2009 2010 2011 Revenues EBITDA SIFICED’ via icking off the 16
Slide 127: Exporting the success
Exporting the success To get back, SIFICED’ via icking off the 17
Slide 128: Schibsted Payment
Schibsted Payment – leveraging our customer base to increase ARPU Media Houses To get back, Online Classifieds SIFICED’ via icking off the 18
Slide 129: User payments: new potential, Media Houses
User payments represent new potential for Schibsted: Media Houses: User payments are only about 6% of digital revenues Some positive experiences worldwide suggest that there is willingness to pay To get back, Propensity to login, provide user data driven by social media Aftonbladet + is a su
Slide 130: User payments: new potential, Online Classifieds
User payments represent new potential for Schibsted: Online Classifieds Currently user payments are limited to paid private ads (FINN and Blocket), as well as voluntary upsell features To get back, The digital payments industry is in rapid transformation (escrow, P2P, mobile completion, NFC, e-w
Slide 131: Our common login and payment platform
Our common login and payment platform: 21
Slide 132: SPiD: iTunes-like login and payment solution
SPiD: our iTunes-like login and payment solution: Joint login and payment platform for Schibsted companies back, Single Sign On • User Admin • Campaign mgmt • Analysis tools • Sales Tools Payment platform • Stored payment info • Click&Pay • Prepaid/gift • Subscriptions card/voucher • Online classifi
Slide 133: SPiD at Aftonbladet Plus
SPID: managing registration and payment flow at Aftonbladet Plus 23
Slide 134: Enabling the transaction – making it safer
Enabling the transaction – making it safer Pickup sales To get back, Remote sales SIFICED’ via icking off the 24
Slide 135: SPiD roadmap for 2012
SPiD roadmap for 2012 Migrate Aftonbladet to SPiD: Jan 2012 To get back, Migrate VG to SPiD: March 2012 Additional Media House and Classified launches SIFICED’ via icking off the 25
Slide 136: 2 ways of building additional value
2 ways of building additional value: Schibsted Growth Media – leveraging our digital traffic to launch new services back, Schibsted Payment – leveraging our customer base to increase ARPU 26
Slide 137: The Schibsted Ecosystem
The Schibsted Ecosystem Growth Media TvM OLC MH SPiD Mobile 27
Slide 138: Schibsted Media Group Investor Day 2012
oS. SCHIBSTED MEDIA GROUP Investor Day 2012
Slide 139: Financials
Financials Trond Berger, CFO
Slide 140: Resources to match strategy
Financials Resources to match strategy Commitment to cost control and profitability Strong track record in cutting costs Financial targets reflect disciplined growth strategy 15-20% revenue growth for Online To get back, classifieds Online Classifieds Equity ratio: 35%-50% Net Interest B
Slide 141: Online Classifieds: Disciplined expansion
Online Classifieds Disciplined expansion Ambitious growth targets set out in Revenues and margin order to capture #1 position 4 000 80 % Profitable growth 3 500 CAGR 70 % 16% Annual spending of around NOK 3 000 60 % 500 million based on current To get back, 2 500 50 % environment MNOK 2 000 46
Slide 142: Investment criteria: approach has paid off
Investment criteria Approach has paid off Organic investment in on-line New venture spend classifieds since 2005 amounts to 500 NOK 923 million Resulting in established market leader in France 400 To get back, Leboncoin.fr with ~65-70% EBITDA-margin 300 MNOK Market leaders in: Italy 200
Slide 143: ROI determined by risk profile
Investment Criteria - ROI determined by risk profile Becoming #1 in on-line classifieds Risk Considerations Measured by value creation Local Market Organic growth Presence Online Classifieds To get back, Blocket rollouts Competitive Market Situation Dynamics Acquisitions Bolt-on acquis
Slide 144: Media Houses: focus on quality products and cashflow
Media Houses Focus on quality products and cashflow EBITDA – Media Houses Media Houses might face a flat to 1 600 slight decline in revenues 1 400 Print costs scrutinized 1 200 To get back, Online growth 1 000 NOK million Focus on maintaining strong cash 800 flow from all business areas 600
Slide 145: Track record of cutting costs
Media Houses Track record of cutting costs Operating Costs Key objective to align costs with 2 000 revenues Cost cut 11% 1 500 Successful cost reductions MNOK 1 000 939 840 NOK 1.7 billion program 500 completed in 2010 with primary 339 332 To get back, focus on Media Houses in print 0 media 20
Slide 146: Good cost control in Media Houses
Good cost control in Media Houses, increased activity in Online Operating cost change Y/Y 12 233 MNOK 36 38 To get back, 648 11 605 37 (131) Operating Currency Divestments Growth Raw Other in Operating Costs 2010 companies materials Media Costs 2011 Houses Growth companies include SCM, Finn.no and S
Slide 147: Limited capital expenditure
Limited capital expenditure Schibsted is to a large extent fully EBITDA and Capex financed 2 500 Normal maintenance CAPEX around NOK 400 million 2 000 Mainly IT systems to streamline 1 500 To get back, operations 1 000 Majority of new initiatives financed MNOK over P&L 500 Change in 2011 i
Slide 148: Strong cash generation
Strong cash generation EBITDA and Capex 2011 Operational cash flow of 2 000 NOK 1.6 billion in 2011 This includes NOK 412 million 1 500 1 488 1 313 1 388 spend on new investments in 1 094 Online classifieds 1 000 NOK million To get back, Balanced portfolio and disciplined 500 approach results
Slide 149: Solid Balance Sheet
Solid Balance Sheet Balance sheet strengthened 2008 2011 through downturn Equity up by NOK 1.6 billion 3 699 3 827 exclusive of share issue of NOK 5 560 5 178 1.3 billion in 2009 To get back, Long term debt reduced by NOK MNOK 4 499 2.5bn in same period. 7 090 12 692 12 509 Majority of new i
Slide 150: Balance sheet clean up
Balance sheet clean up has been carried out last two-three years Divested non core operations TV/film production Film/DVD distribution To get back, Polaris Media Direct mail databases Media archives Photo agency Financial assets and real estate divested Total proceeds more than NOK 2
Slide 151: Comfortable financial gearing
Comfortable financial gearing Net interest bearing debt over Net Debt and EBITDA EBITDA 1x-2x 6 000 6,0 In a normal situation closer to 2x than 1x 5 000 5,0 More flexible than previously as To get back, online classifieds business is 4 000 4,0 MNOK less exposed to cyclical swings 3 000 3,0 I
Slide 152: Flexible financing structure
Comfortable financing - Flexible financing structure Limited capital expenditure Majority of growth initiatives taken over P&L Total 2011 CAPEX of NOK 354 million To get back, Net Interest Bearing Debt of NOK 1.6 billion Equals 0.8x EBITDA Secures flexibility to pursue strategic options
Slide 153: New bond issue secures financing
New bond issue secures 5 and 7 years financing at favorable rates NOK 800 million bond issue Debt maturity profile 3 500 completed in in February 2012 3 000 NOK 500 million with 2 500 To get back, 5 years maturity, 2 000 NIBOR +215 bp MNOK NOK 300 million with 1 500 7 years maturity, 5.9% 1 00
Slide 154: Maintaining dividend capacity
Maintaining dividend capacity Schibsted targets a pay-out ratio Dividend payments that over time will in the range of 7,00 70 % 25% to 40% of cash flow 6,00 6,00 60 % Depending on solidity Macroeconomic outlook 5,00 50 % To get back, Investment requirements 40 % 4,00 Schibsted holds approx
Slide 155: Key takeaways
Key takeaways Profit improvement and revenue growth in charts are Balance Sheet • Flexibility to match growth ambitions • Equity Ratio of 35% - 50% • Net Debt / EBITDA : 1 – 2 X Capital Expenditure • Near fully financed • Capex in the range of 2 – 3% of revenues Dividend Payments • Predictable divid
Slide 156: Schibsted Media Group Investor Day 2012
oS. SCHIBSTED MEDIA GROUP Investor Day 2012
Slide 157: Schibsted Media Group
ey SCHIBSTED MEDIA GROUP