Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Vend Marketplaces Asa B — Q2 2020 Earnings Presentation
40 slides from Vend Marketplaces Asa's earnings presentation, Jul 16, 2020
Slide 1: Q2 2020 Results
Q2 2020 Results 17 July 2020 Kristin Skogen Lund, CEO Ragnar Kårhus, CFO Christian Printzell Halvorsen, EVP Nordic Marketplaces and CEO of FINN.no
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 ca
Slide 3: Highlights Q2 2020
Highlights Q2 2020 Safeguarding our employees and deliver fully functional services Solid financial results in an extraordinary quarter Acquisition of online marketplace Oikotie in Finland announced on 16 July 2020 We empower circular and sustainable consumption 3
Slide 4: Focus on cost savings while KPIs and revenues have improved throughout Q2
Schibsted excl. Adevinta Focus on cost savings while KPIs and revenues have improved throughout Q2 Nordic Financial Schibsted News Media Marketplaces Services Growth Listing volumes have Good trend for Subscription Underlying revenue decline in Good revenue growth driven improved throughout the reve
Slide 5: Strong EBITDA, increasing QoQ
Strong EBITDA, increasing QoQ Schibsted Group Schibsted excl. Adevinta Adevinta Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) -3% 4,798 4,602 4,645 -11%* 3,191 3,216 3,073 -16%* 1,650 1,591 1,438 1,008** 1,060 919 599** 557 498 503 409** 421 Q2 2018 Q2 2019 Q2 2020 Q2 2018
Slide 6: The acquisition of Oikotie will strengthen our position in Jobs and Real estate in Finland
The acquisition of Oikotie will strengthen our position in Jobs and Real estate in Finland Two strong brands Strategic rationale Structure Financing Oikotie: Multi-vertical Highly complementary Acquisition of 100% Acquisition price of marketplace with leading marketplaces: Using traffic ownership of
Slide 7: We empower circular and sustainable consumption
We empower circular and sustainable consumption 7 Numbers based on twelve digital marketplaces operated by Schibsted and Adevinta, for more details: schibsted.com/secondhandeffect
Slide 8: Nordic Marketplaces
Nordic Marketplaces blocket tori Schibsted
Slide 9: Nordic Marketplaces revenue decline driven by Jobs, Travel and advertising
Revenue decline driven by Jobs, Travel and advertising, Motor rather resilient; sustained good EBITDA margin Nordic Marketplaces Revenue split Revenues (NOKm), EBITDA margin (%) Revenue split (NOKm), Revenue growth YoY (%) -11%* -11%* 813 771 753 813 771 753 69 70 79 Other (+15%*) 46%** 46% 125 45%
Slide 10: Marketplaces Norway: Jobs, Travel and advertising affected, Motor and Real estate up in June
Jobs, Travel and advertising significantly affected, Motor and Real estate revenues up YoY in June; EBITDA margin up YoY Marketplaces Norway Revenues (NOKm), EBITDA margin (%) Highlights Q2 2020 • Classifieds and advertising revenues decline YoY -13% due to COVID-19, improved trend during the 540 50
Slide 11: Real estate and Motor more resilient while Jobs lagging; accelerated traffic growth
Real estate and Motor more resilient while Jobs lagging due to macro environment; accelerated traffic growth Marketplaces Norway New approved ads in main verticals, monthly growth YoY Monthly visits growing 18% in June YoY (million) Jobs Real estate Motor +17% +18% 11% 140 +16% 4% 120 +2% 3% 100 -10
Slide 12: Marketplaces Sweden: Motor growing YoY in Q2; EBITDA margin stable QoQ
Motor growing YoY in Q2; EBITDA margin stable QoQ Marketplaces Sweden Revenues (NOKm), EBITDA margin (%) Highlights Q2 2020 • Motor revenues growing 11%* despite COVID-19 -6%* relief packages for professional car dealers in April 261 • Jobs decline driven by volumes while decline in 244 245 53%** Ge
Slide 13: Motor listings turning to growth in June; May highest traffic since 2013
Motor listings turning to growth in June; May with highest traffic level since 2013 Marketplaces Sweden New approved ads in Motor and Jobs vertical, monthly growth YoY Monthly visits growing 24% in June YoY (million) Motor Jobs 5% 120 +13% +24% +5% 100 -5% -9% -7% 80 -14% 60 -26% -25% 40 20 0 -50% -
Slide 14: Strong household brands and high traffic, well positioned for further growth
Strong household brands and high traffic, well positioned for further growth Unaided brand awareness Yearly visits per internet Yearly revenue per internet capita capita Finn 96% Finn 236 Finn 392 Blocket 72% Blocket 109 Blocket 94 Tori 82% Tori 67 Tori 20 Oikotie 81% Oikotie 22 Oikotie 55 14 Source
Slide 15: Tori and Oikotie have potential for further vertical penetration
Both Tori and Oikotie have big potential for further vertical penetration leading to higher profitability in the mid-term Tori Oikotie Revenue split (%) and total revenues (EURm) FY 2019 Revenue split (%) and total revenues (EURm) FY 2019* Other Other Classifieds EUR 10.2m EUR 27.6m Advertising Adve
Slide 16: We have strengthened our leadership positions in the Nordics
We have strengthened our leadership positions in the Nordics Norway Sweden Finland Generalist #1 #1 #1 Motor #1 #1 #2 Jobs #1 #1 #1 Real estate #1 #2* #2 16 Source: Internal analysis based on traffic, listings, revenues * Real estate for sale for professionals discontinued, focusing on rentals in Sw
Slide 17: News Media
News Media RYZE} = APRON —_ Bergens ei Tibende SVENSKADAGBLADET —_§$tavanger Aftenblad Aftenpoften } 7a Ml? Schibsted
Slide 18: News Media: subscription revenues curbing advertising decline; margin 8%
Subscription revenues curbing decline from advertising; Margin 8% due to cost savings News Media Revenues (NOKm), EBITDA margin (%) Highlights Q2 2020 -7%* • Continued positive development in digital 1,957 1,911 subscriptions 1,789 • Advertising revenues declined driven by COVID-19, trend improving
Slide 19: Subscription revenues driven by ARPU and volume; advertising decline from COVID-19
Subscription revenues driven by both ARPU and volume; advertising revenues decline driven by COVID-19 Continued growth in digital subscription Advertising revenues negatively affected revenues by COVID-19 and gaming regulation NOKm Norway (NOKm)** Sweden (NOKm)** +7%* 657 -22%* 628 588 440 -27%* 394
Slide 20: Next: Financial Services & Growth
Next Financial Services & Growth
Slide 21: Lendo Group: Q2 negatively impacted by COVID-19, improving trends in June
Q2 negatively impacted by COVID-19, improving trends in June Lendo Group Revenues (NOKm), EBITDA margin (%) Highlights Q2 2020 • Negative revenue growth in all Established markets due to COVID-19, while KPIs and financials -8%* improved in June 208 205 208 • Reduced marketing spend across markets to
Slide 22: Distribution and Prisjakt benefiting from COVID-19
Distribution and Prisjakt benefiting from COVID-19; EBITDA improving QoQ due to higher revenues and cost savings Schibsted Growth Increased demand in main services Revenues (NOKm), EBITDA margin (%) Revenue growth Q2 2020 YoY (%) +18%* New business: 169% 623 Distribution 510 Legacy business: 0% 481
Slide 23: Finance
Finance UWS IT AQUA UTI AND UWCHV VACA ANCUV TINCT AUSICTTUUIASCV Schibsted
Slide 24: EBITDA development (NOKm)
Schibsted excl. Adevinta EBITDA development (NOKm) 557 -34 +12 498 -50 +2 +11 EBITDA Nordic News Media Financial Growth Other/HQ EBITDA Q2 2019 Marketplaces Services Q2 2020 24
Slide 25: Q2 EBITDA, operating cash flow and capex
Schibsted excl. Adevinta Q2 EBITDA, operating cash flow and capex EBITDA Operating cash flow Capex (NOKm) (NOKm) (NOKm) -11% 557 498 +5% 306 320 +67% 170 102 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 25
Slide 26: Q2 income statement Schibsted
Schibsted excl. Adevinta Q2 income statement Schibsted Income statement Second Quarter (NOK million) 2019 2020 Operating revenues 3,216 3,073 Operating expenses (2,659) (2,575) Gross operating profit (loss) - EBITDA 557 498 Depreciation and amortisation (208) (199) Share of profit (loss) of joint ve
Slide 27: Underlying tax rate
Schibsted excl. Adevinta Underlying tax rate • The underlying tax rate, excluding Adevinta, is 22.4% • Taxes were positively affected by NOK 320 million from recognition of deferred tax assets Underlying tax rate - Schibsted excl. Adevinta Q2 (NOK million) 2020 Reported profit (loss) before taxes 23
Slide 28: NIBD/EBITDA expected to increase to around 2.5x in Q3 due to Oikotie acquisition
Schibsted excl. Adevinta NIBD/EBITDA expected to increase to around 2.5x in Q3 due to Oikotie acquisition Diversified debt maturity profile* Financial gearing in 1-3x target range from Q3 (NOKm) (NIBD/EBITDA according to bank definition) 5,000 2.5x 4,500 4,000 2.0x 3,500 1.5x 3,000 2,500 1.0x 2,000
Slide 29: Financial targets and policies
Schibsted excl. Adevinta Financial targets and policies Nordic Nordic Marketplaces revenues Marketplaces Targeting revenue growth of 8-12% for the segment in the medium- to long-term News News Media EBITDA margin Media Recovery to 6-8% EBITDA margin in the medium-term Capital M&A M&A activities targ
Slide 30: Key takeaways Q2 2020
Key takeaways Q2 2020 Executing on our strategy Weathering the storm Well positioned for the future We create significant value to our Safeguarding our employees and deliver fully Unrivaled Nordic Marketplaces leadership shareholders, but we also create significant functional services expanded with
Slide 31: Appendices
Appendices Spreadsheet containing detailed Q2 2020 and historical information can be downloaded at schibsted.com/ir
Slide 32: Key operations [1/2]
Schibsted excl. Adevinta Key operations [1/2] News Media Second quarter Year to date YoY Nordic Marketplaces Second quarter Year to date YoY (NOK million) 2020 2019 Change 2020 2019 Δ% (NOK million) 2020 2019 Change 2020 2019 Δ% Advertising revenues 525 683 -23% 1,054 1,331 -21% Classifieds revenues
Slide 33: Key operations [2/2]
Schibsted excl. Adevinta Key operations [2/2] Financial Services Second quarter Year to date YoY Growth Second quarter Year to date YoY (NOK million) 2020 2019 Change 2020 2019 Δ% (NOK million) 2020 2019 Change 2020 2019 Δ% Operating revenues 252 245 3% 545 519 5% Operating revenues 623 510 22% 1,18
Slide 34: Q2 cash flow
Schibsted excl. Adevinta Q2 cash flow Cash flow - Schibsted excl. Adevinta Second Quarter (NOK million) 2019 2020 Profit (loss) before taxes 266 239 Depreciation, amortisation and impairment losses 209 213 Reduction primarily due to temporary postponement of payments resulting Net effect pension lia
Slide 35: Group EBITDA waterfall (NOKm)
Consolidated figures Group EBITDA waterfall (NOKm) 1,060 -34 +12 -50 +2 +11 919 -82 EBITDA Nordic News Media Financial Growth Other/HQ Adevinta EBITDA Q2 2019 Marketplaces Services Q2 2020 35
Slide 36: Q2 EBITDA, operating cash flow and capex
Consolidated figures Q2 EBITDA, operating cash flow and capex EBITDA Operating cash flow Capex (NOKm) (NOKm) (NOKm) -13% 1,060 919 -4% 488 467 +29% 295 229 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 36
Slide 37: Q2 income statement Schibsted Group
Consolidated figures Q2 income statement Schibsted Group Income statement Second Quarter (NOK million) 2019 2020 Operating revenues 4,798 4,645 Operating expenses (3,738) (3,726) Gross operating profit (loss) - EBITDA 1,060 919 Mainly explained by improved share of profit from OLX Brazil Depreciatio
Slide 38: Q2 cash flow Schibsted Group
Consolidated figures Q2 cash flow Schibsted Group Cash flow - Consolidated Second Quarter (NOK million) 2019 2020 Profit (loss) before taxes 568 300 Depreciation, amortisation and impairment losses 308 374 Net effect pension liabilities 15 4 Share of loss (profit) of joint ventures and associates, n
Slide 39: Underlying tax rate Schibsted Group
Consolidated figures Underlying tax rate Schibsted Group • The underlying tax rate is 29.4% • Taxes were positively affected by NOK 320 million from recognition of deferred tax assets Underlying tax rate - Consolidated Q2 (NOK million) 2020 Profit (loss) before taxes 300 Share of profit (loss) of jo
Slide 40: Investor contact
Investor contact Visit Schibsted’s web site schibsted.com E-mail: ir@schibsted.com Jann-Boje Meinecke VP, Head of IR +47 941 00 835 Malin Langtvet IR Officer +47 916 86 710 Schibsted ASA Akersgata 55 / P.O. Box 490 Sentrum NO-0105 Oslo
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