Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Morgan Stanley European TMT Conference 2019
51 slides from Vend Marketplaces Asa's conference presentation, Nov 13, 2019
Slide 1: A Nordic digital front-runner well positioned for continued growth
A Nordic digital front-runner well positioned for continued growth Morgan Stanley European TMT Conference Barcelona, 13 November 2019
Slide 2: Disclaimer
Disclaimer This presentation (hereinafter referred to as the "presentation") has been There may have been changes in matters which affect the Company prepared by Schibsted ASA ("Schibsted" or the "Company") exclusively for subsequent to the date of this presentation. Neither the issue nor delivery o
Slide 3: Key take-aways
Key take-aways Historical track record of incubating growth businesses Unrivalled Nordic Marketplaces leadership positions through Finn, Blocket and Tori Strong digital media brands with strong subscription base High potential in fast developing financial services market through Lendo et al. Proven
Slide 4: We have a 180 years track record of transformations
We have a 180 years track record of transformations... 2019 2018 2017 2016 JV with 2015 2014 Sale of operations in 2013 Romania 2010 2006 2003 Incorporation of Schibsted Classified Media 2000 1996 1992 1966 Schibsted Listed on Oslo Launch of 1860 Stock Exchange 1839 4
Slide 5: Creating value through bold investments and long-term strategies
…creating value through bold investments and long-term strategies Market cap, NOK billion 83.5 65.6 23.5 65.1 53.8 51.2 43.3 43.1 25.4 60.0 16.3 18.6 16.1 15.4 14.1 5.7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nov-2019 Adevinta spun-off part* Schibsted 5 *) 35% of Adevinta wh
Slide 6: A Nordic digital front-runner fueled by cross divisional synergies
A Nordic digital front-runner fueled by cross divisional synergies Integration Traffic 59% ownership Nordic News Media Next Marketplaces 193m 466m 123m Monthly visits Monthly visits Monthly visits Supportive long-term Blink ads owner with focus on Targeted ads Distribution value creation Source: Com
Slide 7: Targeted investment opportunities combined with capital discipline
Targeted investment opportunities combined with capital discipline Recent examples Organically build new Svosj – domestic distribution subscription business Venture activities Growth investments: Capcito, InzpireMe, Habity M&A Jobbsafari (Sweden), Fædrelandsvennen (divestment) International expansio
Slide 8: Tenured and solid management supported by excellent divisional teams
Tenured and solid management supported by excellent divisional teams Ragnar Kårhus CFO Kristin Skogen Lund CEO Mette Krogsrud Chief People & Corporate Affairs Christian Printzell Halvorsen Siv Juvik Tveitnes Raoul Grünthal EVP Next Sven Størmer Thaulow EVP Nordic Marketplaces EVP News Media (Growth
Slide 9: Steady growth in Q3 for Schibsted Group
Steady growth in Q3 for Schibsted Group Schibsted Group Schibsted ex Adevinta Adevinta Revenues (NOK million) and EBITDA Revenues (NOK million) and EBITDA Revenues (NOK million) and EBITDA +6% 4.600 4.358 4.161 +1% 3.013 3.008 3.032 +15%* 1.624 1.381 1.171 1.045 783 865 526 511 542 503 257 354 Q3 17
Slide 10: Continued good revenue development for key strategic areas
Continued good revenue development for key strategic areas News Media Lendo Improved Marketplaces digital revenue revenue trend growth subscription growth in Growth revenue* +9% +3% +11% +30% 10 Currency adjusted growth rates; *) Revenue from pure digital subscriptions
Slide 11: Strong financial position and capital discipline
Strong financial position and capital discipline Low level of Ongoing 1% share net interest- ambition for buyback in Q3 bearing debt M&A and – to be Targeting growth continued up NIBD/EBITDA* investments to 2% in Q4 1-3x *) NIBD = Net interest-bearing debt (figures for Schibsted ex. Adevinta) 11
Slide 12: Nordic Marketplaces
Nordic Marketplaces Schibsted
Slide 13: 9% revenue growth driven by strong development in key verticals
9% revenue growth driven by strong development in key verticals Solid revenue growth in all three markets Verticals increasingly important revenue driver Share of total revenue, Y/Y revenue growth rate in brackets Revenue split (NOK million) and EBITDA margin Other (+19%)* +9% 769 683 707 +1% Other
Slide 14: Reinforced revenue growth driven by verticals and display advertising
Reinforced revenue growth driven by verticals and display advertising Norway Marketplaces Revenues (NOK million) and EBITDA margin • Unrivalled market leader in all verticals 600 +11% 1 • Diversified revenue base with low dependency 505 on advertising 456 409 • 98% brand recognition* and 6 million u
Slide 15: Strong performance within motor vertical drives revenue growth recovery
Strong performance within motor vertical drives revenue growth recovery Sweden Marketplaces Revenues (NOK million) and EBITDA margin • Strong #1 in generalist goods and motor 300 1 +7%1 • Revenue growth driven by verticals 256 230 240 • Turnaround of Blocket on track, solid revenue growth in profess
Slide 16: Solid platform in Finland with further significant ramp-up potential
Solid platform in Finland with further significant ramp-up potential Tori (Finland) Established in 2009 #1 position in EUR 630m GMV (the value of goods sold general goods through Tori in 2018) and traffic 4.1 1.2m Monthly visits per capita* Unique visitors per week* *) Statistics Finland 16
Slide 17: Project example – transactional business model for the car vertical
Project example – focus on transactional business model and value chain for the car vertical A COMPLETE JOURNEY (48%) Condition report, Safe Digital Maintenance, contract with ad- payment and registration insurance, car on services financing sharing options 17
Slide 18: Blink (targeted ads) – exemplifying digital front-runner capabilities
Blink (targeted ads) – exemplifying Schibsted’s digital front- runner capabilities and collaboration across digital positions Average +20%-30% ✓ ✓ ✓ increase in # of new visitors Traffic Real estate agents Fund ✓ ✓ ✓ retention on site, ~5 times per object TRAFFIC AND DATA ✓ ✓ ✓ Property seller reten
Slide 19: News Media
News Media Schibsted
Slide 20: Strong growth in digital subscription revenues, outweighed by challenging advertising market
Strong growth in digital subscription revenues, outweighed by an increasingly challenging advertising market News Media Digital subscription revenues (NOK million)* Revenues (NOK million) and EBITDA margin Digital subscribers approaches 700,000 +30% 2.000 0,02 -5% 225 Digital only Subscription 1.600
Slide 21: Market leading digital media houses in Norway and Sweden
Market leading digital media houses in Norway and Sweden Revenues Q3 19 (NOKm) EBITDA Digital Market position (Online revenue share) margin subscriptions Single copy papers VG 418 (55%) 15% 198k Largest online newspaper in Norway Leading single copy sold print newspaper Aftonbladet 347 (48%) 6% 222k
Slide 22: Driving digital growth in News Media through quality journalism and product innovation
Driving digital growth in News Media through quality journalism and product innovation Aftonbladet regional Daily podcasts Prime news destination – news destination Close, tech driven coverage of Norwegian elections 22
Slide 23: News Media's front-runner capabilities accelerate new digital services
News Media’s front-runner capabilities accelerate new digital services Lendo growth has been accelerated through a combination of marketing and product integration • Promoting Lendo at Aftonbladet enables direct financing access and comparison for the consumers Traffic • Feeds views from sites with
Slide 24: Next: Financial Services & Growth
Next: Financial Services & Growth
Slide 25: Continued growth in Sweden; market stabilization at a low level in Norway
Continued growth in Sweden; market stabilization at a low level in Norway Lendo Revenues (NOK million) and EBITDA margin • Double digit revenue growth in Sweden 250 +3%* • Stabilized development on a month by month basis in Norway 200 • Geographical expansion affecting EBITDA 150 negatively with aro
Slide 26: 80% of revenue fully automated – unique vs competition
Lendo business model empowers users to find and sign the best loan, 80% of revenue fully automated – unique vs competition Proposals – Application Credit scoring inbox with Partner Lendo receives a sent offers process commission of all loans paid out to consumers by the lender at the time of 2 4 6 t
Slide 27: Accelerated revenue development in Schibsted Growth
Accelerated revenue development in Schibsted Growth Schibsted Growth Revenues (NOK million) and EBITDA margin Distribution 600 Revenue Q3 19 (NOKm) +11%* 500 307 (18% YoY) 400 Prisjakt 300 Revenue Q3 19 (NOKm) 200 64 (-4% YoY) 100 4% 9% 5% (3%) Other Growth 0 Q3 17 Q3 18 Q3 19 Revenue Q3 19 (NOKm) R
Slide 28: Strong growth in innovative distribution operations
Strong growth in innovative distribution operations leveraging the already existing newspaper distribution • Leveraging the traditional newspaper distribution network – reaching 90% of Norwegian households every morning* • Continued strong growth for new distribution solutions fueled by e- commerce
Slide 29: Home delivery subscription app Svosj launched in Norway
Home delivery subscription app “Svosj” launched in Norway Leveraging Schibsted’s* existing last mile home distribution network • Revenue model based on both shipping fees paid by web shop partners and monthly subscription fee from consumers, advertising revenue as possible third revenue stream • Unl
Slide 30: Ownership in Adevinta
Ownership in Adevinta Schibsted
Slide 31: Schibsted will continue to be a supportive long-term owner of Adevinta
Schibsted will continue to be a supportive long-term owner of Adevinta Adevinta • Schibsted ASA will continue to be an active, Revenues* (EUR million) and EBITDA margin* significant long-term owner of Adevinta – the +15% global leading online classifieds company 180 50 160 • Schibsted will exercise
Slide 32: Finance
Finance ie > Schibsted
Slide 33: Segment summary
Schibsted excl. Adevinta Segment summary Nordic Marketplaces News Media Financial services Growth Revenues and EBITDA margin (NOK million) Revenues and EBITDA margin (NOK million) Revenues and EBITDA margin (NOK million) Revenues and EBITDA margin (NOK million) -4%* 1,878 1,834 1,754 +9%* 769 +11%*
Slide 34: EBITDA change Q3 18 – Q3 19 (NOK million)
Schibsted excl. Adevinta EBITDA change Q3 18 – Q3 19 (NOK million) 542 511 29 -36 -12 85 -27 -9 2 457 EBITDA Nordic News Media Financial Lendo Growth Other/HQ EBITDA IFRS 16 EBITDA Q3 2018 Marketplaces services expansion incl. product Q3 19 ex effect Q3 2019 established & tech IFRS 16 34
Slide 35: Q3 income statement Schibsted ex. Adevinta
Schibsted excl. Adevinta Q3 income statement Schibsted ex. Adevinta Income statement Third quarter (NOK million) 2018 2019 NOK 85 million in positive IFRS 16 Operating revenues 3,008 3,032 effect on operating expenses and Operating expenses -2,498 -2,490 EBITDA Gross operating profit (loss) - EBITDA
Slide 36: Underlying tax rate
Schibsted excl. Adevinta Underlying tax rate ■ The underlying tax rate, excluding Adevinta, is 23.8% ■ The reported tax rate is 32% in year to date 2019 ■ Generally, Schibsted reports a tax rate exceeding the applicable nominal tax rates primarily as an effect of losses for which no deferred tax ass
Slide 37: EBITDA, operating cash flow and CAPEX (ex. Adevinta)
Schibsted excl. Adevinta EBITDA, operating cash flow and CAPEX (ex. Adevinta) EBITDA Operating cash flow CAPEX NOK million NOK million NOK million +6% +28% -7% 542 457 108 511 100 85 75 358 457 382 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 IFRS 16 effect 37
Slide 38: Unchanged financial targets and policies
Unchanged financial targets and policies 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 strengthen market position
Slide 39: Cp @.0 e | 06, Sarees.
Cp @.0 6 e | 06, Sarees. TLUNT LAM Tee a Oe | toree. e° | Bogor ice ee 48 Or argerer’s | ‘ ®e'Qe see 888 ae AA SO. e O54 TG me Arey wa i) e- oe 0 9 + ee .° te. . 8 . ef e° ® ee ee . . e . e rr | _ . . . Schibsted .,
Slide 40: Key operations
Schibsted excl. Adevinta Key operations News Media Third quarter Year to date Nordic Marketplaces Third quarter Year to date (NOK million) 2019 2018 Change 2019 2018 Change (NOK million) 2019 2018 Change 2019 2018 Change Operating revenues 1,754 1,834 -4% 5,521 5,688 -3% Operating revenues 769 707 9
Slide 41: Key operations
Schibsted excl. Adevinta Key operations Financial Services Third quarter Year to date Growth Third quarter Year to date (NOK million) 2019 2018 Change 2019 2018 Change (NOK million) 2019 2018 Change 2019 2018 Change Operating revenues 275 261 5% 794 762 4% Operating revenues 517 463 12% 1,530 1,424
Slide 42: Cash flow Schibsted ex Adevinta
Schibsted excl. Adevinta Cash flow Schibsted ex Adevinta Cash flow - Schibsted excl. Adevinta Third quarter (NOK million) 2019 Profit (loss) before taxes 266 Depreciation, amortisation and impairment losses 196 Net effect pension liabilities (5) Share of loss (profit) of joint ventures and associate
Slide 43: Q3 income statement Schibsted Group
Consolidated figures Q3 income statement Schibsted Group Income statement Third quarter (NOK million) 2018 2019 Operating revenues 4,358 4,600 Operating expenses (3,493) (3,554) NOK 119 million in positive IFRS 16 effect Gross operating profit (loss) - EBITDA 865 1,045 on EBITDA Depreciation and amo
Slide 44: Improved EBITDA in Q3 – consolidated figures
Consolidated figures Improved EBITDA in Q3 – consolidated figures EBITDA change Q3 18-Q3 19 (NOK million) 1 045 119 926 865 29 -37 115 (-39) (-9) 2 EBITDA Nordic News Financial Growth Other/HQ Adevinta EBITDA IFRS 16 EBITDA Q3 2018 Marketplaces Media services incl. Q3 19 ex effect Q3 2019 product &
Slide 45: EBITDA, operating cash flow and CAPEX
Consolidated figures EBITDA, operating cash flow and CAPEX EBITDA Operating cash flow CAPEX NOK million NOK million NOK million +21% +45% +12% 1,045 820 200 119 104 IFRS-16 effect 179 865 566 926 716 Q3 2018 Q3 2019 Q3 2018 Q3 2019 Q3 2018 Q3 2019 45
Slide 46: Cash flow Schibsted Group
Consolidated figures Cash flow Schibsted Group Cash flow - Consolidated Third quarter (NOK million) 2018 2019 Profit (loss) before taxes 652 640 Depreciation, amortisation and impairment losses 181 297 Net effect pension liabilities 13 (5) Share of loss (profit) of joint ventures and associates, net
Slide 47: Underlying tax rate stable slightly below 30%
Consolidated figures Underlying tax rate stable slightly below 30% ■ The underlying tax rate is stable, slightly below 30%. ■ The reported tax rate is 38% in the third quarter of 2019, compared to 44% in the same period in 2018. ■ Generally, Schibsted reports a tax rate exceeding the applicable nomi
Slide 48: Key financial figures - consolidated
Consolidated figures Key financial figures - consolidated Earnings per share - adjusted Net cash flow from operating activities NOK NOK million 2.00 1.84 900 820 1.76 1.74 778 800 1.75 1.45 1.42 1.40 1.43 700 1.50 604 550 566 600 1.25 486 0.96 500 1.00 0.88 0.72 400 335 335 330 0.75 300 0.50 192 200
Slide 49: 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 (17 October 2019) 1,950,267 768,857 Number of shares outstanding 106,053,348 129,915,516 *) Total number of shares ex
Slide 50: Shareholder analysis
Shareholder analysis Rank Name A-Shares B-shares Total % Shareholders SCHA SCHB 1 Blommenholm Industrier AS 28,541,262 30,621,205 59,162,467 25.0 % % of foreign shareholders 54.0 % 56.8 % 2 Folketrygdfondet 7,826,190 10,473,569 18,299,759 7.7 % Number of shareholders 3,959 4,259 3 Baillie Gifford &
Slide 51: Visit Schibsted's web site
Visit Schibsted’s web site www.schibsted.com IR contact: Jann-Boje Meinecke Head of IR jbm@schibsted.com +47 941 00 835 Schibsted ASA Akersgata 55, P.O. Box 490 Sentrum, NO-0105 Oslo Tel: +47 23 10 66 00 E-mail: schibsted@schibsted.no 51
Schibsted — Morgan Stanley European TMT Conference 2019 on 6ix