Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Adevinta — Investor Day (March 2019)
21 slides from Vend Marketplaces Asa's investor day presentation, March 2019
Slide 1: Adevinta - a leading pure player in international marketplaces
Adevinta - a leading pure player in international marketplaces Rolv Erik Ryssdal CEO – Adevinta
Slide 2: Our mission is to create perfect matches on the world's most trusted marketplaces
Our mission is to create perfect matches on the world's most trusted marketplaces Generalist ◼ Sellers ◼ Buyers ◼ Dealers ◼ Renters Cars ◼ Agents ◼ Job seekers ◼ Recruiters Real Estate Jobs We want to make a positive change in the world by helping everything and everyone find new purpose 5
Slide 3: We are a leading global marketplace player
We are a leading global marketplace player Global Diversified Compelling scale exposure financial profile ✓ ✓ ✓ Other Other countries Europe 5% 17 % 16 France €594.6m Spain 51 % markets1 27 % Revenue4 18A Other Generalist 2 % 7% 800m Advertising Verticals €151.0m population 23 % 68 % EBITDA4, 5 18A
Slide 4: Adevinta at a glance
Adevinta at a glance France Spain Brazil Global Markets +1.5bn +1.5m c. 2,800 Monthly visits1 listings / day1 employees2 Source: 1 Company information based on SAP, average for 2018; 2 Company information, as of December 2018 7
Slide 5: We have a diversified footprint and leadership positions within attractive markets across Europe and LatAm
We have a diversified footprint and leadership positions within attractive markets across Europe and LatAm Global presence with multiple leadership positions1 5 1 1 1 2 1 1 1 1 1 4 1 3, 6 1 1 7 8 # Market position in terms of traffic Gen. goods Real Estate Jobs Cars Source: Mediametrie, Geminus, Sim
Slide 6: Adevinta - a leading pure player in international marketplaces
Adevinta - a leading pure player in international marketplaces Significant global market opportunity with presence in highly attractive geographies Attractive business model – strong network effects, defensible market positions and winner-takes-most characteristics Leading marketplace player – combi
Slide 7: Marketplaces are a fast-growing and attractive global industry
Marketplaces are a fast-growing and attractive global industry Significant market size… … with attractive growth ($bn) CAGR 17A-22E Global online classifieds $27.4bn revenue 2022E 27,4 8.6% 25,7 23,8 22,0 29% 7.1% Display advertising 20,1 29% 18,2 29% By vertical 30% 30% 31% 28% 8.6% Real Estate 28%
Slide 8: Adevinta is active in countries with significant potential for long-term growth
Adevinta is active in countries with significant potential for long-term growth Internet ad spend per capita, 2018 ($)1, 2 Real GDP growth 3.6% 2.3% 2.8% 1.9% 0.9% 1.8% 1.6% 1.7% 3.5% 2.0% 2.0% 2.1% 1.5% 2018-20211 239 245 246 219 118 101 74 43 56 26 32 42 3 Colombia Brazil Hungary Spain Italy Austr
Slide 9: The marketplaces business model benefits from many attractive characteristics
The marketplaces business model benefits from many attractive characteristics Significant benefits to Improved liquidity as the both users and listers Win-win value Network marketplace grows proposition effects High cash generation Local leaders enabled by Leading positions drive due to low capex Wi
Slide 10: We have solid leadership positions across generalist and verticals in our major markets
We have solid leadership positions across generalist and verticals in our major markets Traffic1 Ad Listings2 Customers3 Traffic Ad Listings Customers Traffic Ad Listings Customers Gen. good 4 4 4 5 4 9, 11 1 1 1 2 2 NA 1 NA NA Real estate 7 7 9 10 6 10 1 1 1 2 1 1 1 3 2 Cars 5 7 7 9 10 10 1 1 1 1 1
Slide 11: We are amongst the fastest growing marketplace groups globally
We are amongst the fastest growing marketplace groups globally Revenue CAGR 2016-2018 (%) 70% 3 26% 18% 19% 14% 15% 14% 11% 10% 8% 2 2 3 Auto Trader Scout24 Rightmove Carsales eBay Axel Springer REA Group Adevinta Zillow Naspers Digital Classifieds classifieds Countries of 2 51 1 7 15 8+ 6 16 1 35+
Slide 12: Our scale allows us to leverage R&D deployments across our platforms
Our scale allows us to leverage R&D deployments across our platforms Selected examples Our local tech infrastructure Global messaging Trust and reputation Performance dashboard Image Recognition c.1,360 Employees in product and tech >44 Building a transactional Deepen verticalisation by Increase tru
Slide 13: We see potential to capture more value by improving user journeys using data across our verticals
We see potential to capture more value by improving user journeys using data across our verticals Illustrative example of facilitating a potential solution to a user searching for a new job in France 1 2 3 User based in Marseille finds a LBC collates this data & LBC then advertises furnishings job i
Slide 14: We have delivered strong revenue growth with improving profitability and low capex requirements
We have delivered strong revenue growth with improving profitability and low capex requirements Revenue2 (€m) EBITDA2, 3 (€m) Capex (€m)1, 2 x% EBITDA2, 3 margin x% EBITDA2, 4 margin ex- x% Capex as % of sales inv. phase 31% 30% 33% 6% 6% 5% 594,6 15% 19% 25% 511,4 151.0 421,1 95,8 30,4 30,7 24,9 61
Slide 15: We have proven our ability to scale marketplaces quickly and effectively
We have proven our ability to scale marketplaces quickly and effectively Brazil Revenue1 – 100% view (€m) Adevinta’s ownership 25% 50% 50% in OLX Brazil : 68.9 53,3 29.8 62,6 46,2 23,5 2016 2017 2018 Invest in Verticalise Improve attracting Build leading generalist offering while listings and genera
Slide 16: Our strategy is to maintain and extend existing leadership positions while capturing core and adjacent market opportunities
Our strategy is to maintain and extend existing leadership positions while capturing core and adjacent market opportunities Improve matchmaking Pursue further value Drive innovation in Pursue strategic Drive data and tech performance in the creation in verticals (real marketplace models in objective
Slide 17: Our segments are at different stages of development and require specific strategies
Our segments are at different stages of development and require specific strategies FRANCE SPAIN BRAZIL GLOBAL MARKETS One focused brand, with leading generalist position One focused brand, with Multi-brand model, with and expanding verticals Focused local brands by leading generalist position deepl
Slide 18: We have potential to increase monetisation across our markets
We have potential to increase monetisation across our markets Revenues / internet user 2018 (€) 40,0 20,0 0,0 Norway Sweden France Austria Spain Brazil Current monetization Adevinta revenues1 / Internet users 2018 High Low/Medium Low Very Low Schibsted revenues2 / Internet users 2018 Source: Interna
Slide 19: We have a history of strategic acquisitions and will continue to drive value creation through inorganic developments
We have a history of strategic acquisitions and will continue to drive value creation through inorganic developments JV with Acquisition of 25% stake acquired to Hungary and reach 50% stake Sale of Romanian operations 2006 2008 2010 2011 2014 2015 2016 2017 2018 2019 Acquisition of full ownership in
Slide 20: We attract the best talent in the industry to keep our marketplaces at the forefront of innovation and competition
We attract the best talent in the industry to keep our marketplaces at the forefront of innovation and competition We provide opportunities for skill development and We attract the best talent in the market encourage the sharing of knowledge internally Strong values and shared culture across the com
Slide 21: Adevinta - a leading pure player in international marketplaces
Adevinta - a leading pure player in international marketplaces Significant global market opportunity with presence in highly attractive geographies Attractive business model – strong network effects, defensible market positions and winner-takes-most characteristics Leading marketplace player – combi