Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Morgan Stanley TMT Conference 2020
51 slides from Vend Marketplaces Asa's conference presentation, Mar 2, 2020
Slide 1: Empowering people in their daily lives
Empowering people in their daily lives Morgan Stanley TMT Conference San Francisco, 02 March 2020
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: Three strong Nordic business areas after the spin-off of Adevinta
Three strong Nordic business areas after the spin-off of Adevinta 59% ownership in Nordic Next leading pure-player in international News Marketplaces marketplaces Media Revenues 2019 Revenues 2019 Revenues 2019 Revenues 2019* NOK 3.1bn NOK 7.5bn NOK 3.2bn NOK 6.7bn EBITDA 2019 EBITDA 2019 EBITDA 201
Slide 4: A Nordic digital front-runner with the purpose of value creation
A Nordic digital front-runner with the purpose of value creation for both shareholders and society We create significant financial value to our shareholders, but we also create significant value to society We utilize our position as a Nordic digital front-runner to grow further and build strong posi
Slide 5: Our businesses are important for building a sustainable and democratic society
Our businesses are important for building a sustainable and democratic society, attracting talent and users Nordic Next Marketplaces Help people make better …reducing CO2 emissions and choices by… empowering consumers Defending democratic and …providing trusted and humanistic values by… independent
Slide 6: 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 6
Slide 7: Creating value through bold investments and long-term strategies
…creating value through bold investments and long-term strategies Market cap (NOKbn) 90.1 27.1 65.1 65.6 51.2 53.8 43.3 43.1 25.4 63.0 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 Feb-2020 Adevinta spun-off part* Schibsted 7 * 35% of Adevinta which wa
Slide 8: Value creation through targeted investment opportunities combined with capital discipline
Value creation through targeted investment opportunities combined with capital discipline Recent examples Organically build new Svosj (domestic distribution subscription) business International Lendo Denmark, Poland, Austria expansion M&A and venture Jobbsafari (Sweden), Nettbil (Norway), Habity act
Slide 9: Data and synergies make Schibsted more than the sum of its parts
Data and synergies make Schibsted more than the sum of its parts Product development and integrations driven Highlights by… • Utilizing user data across the Group entities • Better products for consumers and customers • Improved advertising targeting • Opportunity to develop subscription products ac
Slide 10: Highlights 2019
Highlights 2019 Successful spin-off/IPO of Adevinta New tenured and solid management team established Refocusing Schibsted as Nordic digital front-runner well positioned for further growth Successful turnaround of Blocket after revenue decline in 2018 10
Slide 11: Schibsted key take-aways
Schibsted key take-aways Historical track record of incubating growth businesses Focus on growth based on unique position in the Nordics and cross divisional synergies Proven financial performance and strong balance sheet Supportive long-term owner of Adevinta with focus on optimizing shareholder va
Slide 12: Q4 2019 results – highlights
Q4 2019 results – highlights 12
Slide 13: Highlights Q4 2019
Highlights Q4 2019 • Group revenues +8% in Q4 2019, +1% ex Adevinta • Q4 EBITDA for Schibsted ex Adevinta -3% YoY (-21% excluding IFRS 16) at NOK 460m • Nordic Marketplaces: Solid revenue growth at a somewhat lower pace, increased EBITDA despite investments in Sweden. Revenues in Norway +6% despite
Slide 14: Continued good growth development in Q4 within key strategic focus areas
Schibsted excl. Adevinta Continued good growth development in Q4 within key strategic focus areas News Media Nordic digital Lendo Schibsted Marketplaces subscription revenues Growth revenues revenues** +6%* +4%* +16%* +21% Verticals driving growth, Good growth driven by Growth driven by Strong reven
Slide 15: Steady growth in Q4 for Schibsted Group
Steady growth in Q4 for Schibsted Group Schibsted Group Schibsted excl. Adevinta Adevinta Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) +8% 5,101 4,742 4,455 +1% 3,171 3,275 3,316 +16%* 1,844 1,494 1,316 897 944 695 416 476 460 421 485 279 Q4 2017 Q4 2018 Q4 2019 Q4 2017 Q4
Slide 16: Executing on our focused strategy to mitigate the negative trend in digital advertising
Executing on our focused strategy to mitigate the negative trend in digital advertising • Reorganization of our Swedish sales force completed Aftonbladet • Continuous product development aiming to VG digital digital distinguish our offerings from programmatic advertising advertising commodities reve
Slide 17: Taking strategic measures in News Media to adapt
Taking strategic measures in News Media to adapt 1 Implementing initiatives to turn 2 Focused product and business around negative margin development to generate new development and secure long- revenues term profitability for News Media • Fast guaranteed reach products within advertising • Tight co
Slide 18: Strong financial position and capital discipline
Strong financial position and capital discipline Low level of net interest-bearing debt, targeting NIBD/EBITDA* 1-3x Ongoing ambition for M&A and growth investments Share buyback program announced in July 2019 to be completed Dividend proposal of NOK 2.00 per share 18
Slide 19: Key take-aways Q4 2019
Key take-aways Q4 2019 Online classifieds Digital subscriptions Schibsted Growth verticals +12% revenues in revenues +16%*, Blocket +8% News Media +21% margin expansion Implementing Capital discipline – Digital advertising in initiatives to improve dividend proposal News Media -11%, margins and secu
Slide 20: Nordic Marketplaces
Nordic Marketplaces 20 Volvo V90 D4 Inscription Eu6 190hk Fullmoms 309 800 ke 2x72 iddermark Finans @ asa Rent or rent out your apartmenr safely with Care-free renting with the security, support and simplicity you déserve, SS RENT OUT AHOME Are you thinking about subletting your home? (ay)
Slide 21: Revenue growth of 6% driven by key verticals in Norway and car vertical in Sweden
Revenue growth of 6% driven by key verticals in Norway and car vertical in Sweden Nordic Marketplaces Revenue growth driven by verticals in Q4 2019 Revenues (NOKm), EBITDA margin (%) Revenues (NOKm) +6%* +6% 758 758 714 714 61 Other (0%) 665 665 61 60 83 Generalist (-11%) 93 96 126 Display advertisi
Slide 22: Revenue growth of 6% driven by verticals and advertising
Revenue growth of 6% driven by verticals and advertising, margin expansion driven by lower costs Marketplaces Norway Revenues (NOKm), EBITDA margin (%) Highlights Q4 2019 +6% • 5% growth in classifieds revenues, 14% 486 growth in advertising revenues 459 • Growth in classifieds due to higher ARPU in
Slide 23: 8% revenue growth driven by car vertical
8% revenue growth driven by car vertical, increase in FTEs to execute on growth strategy affecting margin Marketplaces Sweden Revenues (NOKm), EBITDA margin (%) Highlights Q4 2019 +8%* • Turnaround of Blocket continues with highest 249 248 quarterly revenue growth in 2019 230 • 11%* growth in classi
Slide 24: 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 24 Source: Company data
Slide 25: Our value creation levers to drive further growth within Nordic Marketplaces
Our value creation levers to drive further growth within Nordic Marketplaces 1 Consolidate Nordic market positions 2 ARPU expansion Become transactional New revenue streams 3 Expand into adjacent and new marketplaces 25
Slide 26: Opportunities for value enhancing in-market consolidations in Sweden and Finland
1 Opportunities for value enhancing in-market consolidations in Sweden and Finland Traffic Listings Revenue Traffic Listings Revenue Traffic Listings Revenue Generalist 1 1 1 1 1 1 Cars 1 1 1 3 2 3 1 Real Estate 2 2 2 3 3 3 Jobs 2 1 1 26 Source: Company data
Slide 27: FINN moving more and more into transactions
2 FINN moving more and more into transactions, e.g. simpler car transaction journey Condition report, Safe payment Digital One-click contract with ad-on with escrow registration of insurance, car club services service and ownership change membership, fuel financing discount credit options card, main
Slide 28: Nettbil offers a fast, convenient and safe sales process
2 Nettbil offers a fast, convenient and safe sales process Nettbil business model Acquisition* of an end-to-end digital car auction • Digital marketplace for auction-based car sales service in Norway towards dealers all over Norway • Supplement to the sale of used cars on FINN with high synergy pote
Slide 29: Qasa – fully digital real estate rental platform
2 Qasa – fully digital real estate rental platform Building trust between tenant and landlord - Payment guarantee - Collaboration with legal professionals - Home insurance Finding suitable tenants - Matching algorithm - Tenants provide: National ID, references, etc. - Landlord is matched with tenant
Slide 30: Transactional models provide significant opportunity for ARPU expansion
2 Transactional models provide significant opportunity for ARPU expansion Real estate rental in Sweden Car transactions in Norway ARPU potential (SEK) ARPU potential (NOK) “Traditional” “Traditional” Blocket model Finn model ~25x ~1.5x Transactional Transactional model model ~10x "Nettbil" model 30
Slide 31: Investing to ensure both short- and long-term growth
3 Investing to ensure both short- and long-term growth • Real estate new constructions New • Education vertical • Salon booking marketplace Adjacent • Real estate rentals • Car transaction journey • New self-served business center for professional Core customers • “Blink” Size of colored areas indic
Slide 32: News Media
os Now Playing Notes
Slide 33: Strong growth in digital subscription revenues, outweighed by challenging advertising market
Strong growth in digital subscription revenues, outweighed by a challenging advertising market News Media Reaching 720k digital subscribers Revenues (NOKm), EBITDA margin (%) Digital subscription revenues** (NOKm) -6%* +21% 2,010 2,045 Digital subscription 228 1,944 revenues** 31 Aftonbladet +21% 18
Slide 34: Market leading digital media houses in Norway and Sweden
Market leading digital media houses in Norway and Sweden Revenues Q4 2019 (NOKm) EBITDA Digital Market position (Online revenue share) margin subscriptions* Single copy papers VG 477 (61%) 17% 211k Largest online newspaper in Norway Leading single copy sold print newspaper Aftonbladet 383 (55%) 6% 2
Slide 35: Five focus areas to drive further ARPU and subscription revenue growth [1/2]
Five focus areas to drive further ARPU and subscription revenue growth [1/2] 1 2 3 Developing verticals and Optimize pricing, i.e. price Repacking of existing product upsell products (i.e. within increases where possible and offerings (i.e. basis, premium, sports, business & appropriate family) to m
Slide 36: Five focus areas to drive further ARPU and subscription revenue growth [2/2]
Five focus areas to drive further ARPU and subscription revenue growth [2/2] 4 5 Link or combine relevant subscription products Increase the value of our paid products with across Schibsted and offer combinations to our exclusive content and improved user experience customers Ex of exclusive content
Slide 37: Next Financial Services & Growth
Next Financial Services & Growth 37
Slide 38: Strong growth in Sweden, stable development quarter-over-quarter in Norway
Strong growth in Sweden, stable development quarter-over-quarter in Norway Lendo Group Revenues (NOKm), EBITDA margin (%) Highlights Q4 2019 • Continued double-digit growth in Sweden +4%* • Stable development on a quarter by quarter 218 basis in Norway, but still down year-on-year 207 191 • Geograph
Slide 39: Lendo's business model empowers users to find and sign the best loan
Lendo’s business model empowers users to find and sign the best loan, 80% of revenue fully automated Credit Proposals – scoring Application inbox with Partner Lendo receives a sent offers process commission of all loans paid out to consumers by the lender at the time of the transaction 2 Partners 4
Slide 40: Continued strong growth in Denmark, soft launch in Spain planned for 2020
Continued strong growth in Denmark, soft launch in Spain planned for 2020 Lendo Denmark Lendo expansion Indexed number of applications* Highlights • Continued strong growth in Denmark with 1,100 1,000 solid traction on all key KPIs during the year 900 • Continuing international expansion and plan 80
Slide 41: Proven business model with international scalability potential
Proven business model with international scalability potential Roll-out Norway in 2012 2 years NOK 47m Time to breakeven Revenues year 2 Roll-out Denmark in 2018 3-4 years DKK ~50m Time to breakeven Revenues year 2 Internationalization of Lendo is an important component of Schibsted’s growth story 4
Slide 42: Accelerated revenue development and margin expansion in Schibsted Growth
Accelerated revenue development and margin expansion in Schibsted Growth Schibsted Growth Revenue growth across all areas Revenues (NOKm), EBITDA margin (%) Revenue growth Q4 2019 vs. last year (%) +16%* New business: 116% 635 Distribution 509 542 Legacy business: 13% 10% Prisjakt 3%* 5% 6% (9%) Q4
Slide 43: Strong growth in innovative distribution operations
Strong growth in innovative distribution operations leveraging the already existing newspaper distribution New businesses within Distribution • Leveraging the traditional newspaper distribution network – reaching 90% of Norwegian households every morning* • Continued strong growth for new distributi
Slide 44: Home delivery subscription app Svosj launched in Norway
Home delivery subscription app “Svosj” launched in Norway Leveraging our existing last mile home distribution network* • Revenue model based on both shipping fees paid by online shop partners and monthly subscription fee from consumers, advertising revenue as possible third revenue stream • Unlimite
Slide 45: Expanding the customer buying process will increase engagement for Prisjakt
Expanding the customer buying process will increase user engagement and revenue potential for Prisjakt Customer buying process Examples of new services • Prisjakt is currently only serving users in the Reuse Needs “Alternative” and “Post Purchase” phases • Expanding the buying process with new servi
Slide 46: Finance – highlights
Finance — highlights 46 19:22 Schibsted About us \ Empowering people Cees Who we are We'te on an ambitious mission to provide leading online marketplaces, build world-class media and help great companies scale. SEE BRAND MOVIE Datamaskiner & lbehor @ reron aces JANUAR SALG Janvarslg betyofe Sat eve
Slide 47: Segment summary
Schibsted excl. Adevinta Segment summary Nordic Marketplaces News Media Financial Services Schibsted Growth (NOKm, %) (NOKm, %) (NOKm, %) (NOKm, %) +6%* -6%* 758 2,045 +16%* 714 2,010 665 1,944 635 542 509 42% 41% 43% +3%* 10% (41%) 249 260 9% 10% 10% 235 6% 5% (9%) 36% 25% (7%) (21%) 13% Q4 2017 Q4
Slide 48: Key financial figures Schibsted Group
Consolidated figures Key financial figures Schibsted Group Earnings per share – adjusted Net cash flow from operating activities (NOK) (NOKm) 1.76 1.74 1.84 778 820 759 1.45 1.42 1.40 1.43 1.36 604 550 566 486 0.88 0.72 335 335 330 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q3 17 Q4
Slide 49: Basic share information
Basic share information A-share B-share Ticker SCHA SCHB Oslo Stock Exchange: SBSTA.OL SBSTB.OL Reuters: SCHA:NO SCHB:NO Bloomberg: Number of shares 108,003,615 130,684,373 Treasury shares (10 February 2019) 3,213,267 1,302,176 Number of shares outstanding 104,790,348 129,382,197 Free float* 71% 76%
Slide 50: Shareholder analysis
Shareholder analysis Rank Name A-shares B-shares Total % Shareholders A-shares B-shares 1 Blommenholm Industrier AS 28,541,262 30,621,205 59,162,467 25.3% % of foreign shareholders 52.3% 56.3% 2 Folketrygdfondet 8,476,190 10,473,569 18,949,759 8.1% Number of shareholders 3,801 4,199 3 Baillie Giffor
Slide 51: Visit Schibsted's web site
Visit Schibsted’s web site schibsted.com Investor Relations contact: Jann-Boje Meinecke VP, Head of IR ir@schibsted.com +47 941 00 835 Schibsted ASA Akersgata 55 / P.O. Box 490 Sentrum NO-0105 Oslo schibsted@schibsted.no +47 23 10 66 00