Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Investor Day (March 2019)
109 slides from Vend Marketplaces Asa's investor day presentation, Mar 7, 2019
Slide 1: Welcome to Capital Markets Day
WELCOME to Capital Markets Day London, 7 March 2019
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 c
Slide 3: We have a 180 years track record of transformations
We have a 180 years track record of transformations... 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 3
Slide 4: Creating value through bold investments and long-term strategies
…creating value through bold investments and long-term strategies Schibsted Market Cap, NOKm 80 121 65 073 65 626 53 827 51 161 43 331 43 137 25 435 18 577 15 443 16 308 16 082 14 051 5 748 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 04.03.2019 Source: Factset 4
Slide 5: We now have two strong, leading businesses after the split
We now have two strong, leading businesses. The split enhances value and increases flexibility to pursue independent strategies Nordic digital front-runner Global marketplaces player Finn, Blocket & Tori Generalist and vertical sites across News Media activities – Europe – LatAm Growth initi
Slide 6: Adevinta is set for growth with a supportive shareholding structure
Adevinta is set for growth with a supportive shareholding structure Public owners Blommenholm Industrier AS Public owners ✓ No ownership restrictions (24% of capital/ 26% of votes) ✓ Increased flexibility for future strategic transactions and global expansion (>50%) ✓ Schibsted will be a long-term a
Slide 7: We help consumers take well-informed decisions
We help consumers take well-informed decisions - on issues that make a difference in their lives Purpose Trustworthiness Respect Knowledge Sustainability Transparency Marketplaces News Media Next 7
Slide 8: Two growth companies with excellent management teams
Two growth companies with excellent management teams Rolv Erik Ryssdal Uvashni Raman Kristin Skogen Lund CEO CFO CEO Antoine Jouteau Gianpaolo Santorsola Ovidiu Solomonov Anders Skoe Siv Juvik Tveitnes Raoul Grünthal CEO – Leboncoin CEO – Spain SVP – Global Markets EVP – Nordic Marketplaces EVP – Ne
Slide 9: Agenda for the day
Agenda for the day Company Time Agenda Presenter 9:00 AM – 9:15 AM Opening remarks Ole Jacob Sunde, Chairman – Schibsted Introduction to Schibsted Kristin Skogen Lund, CEO – Schibsted Segment deep dive – Nordic Marketplaces Anders Skoe, EVP – Nordic Marketplaces Segment deep dive – News Media Siv Ju
Slide 10: Capital Markets Day
CAPITAL MARKETS 7 MARCH 2019 DAY
Slide 11: Our business
Our business Next: 60% ownership Nordic News Media Growth & Financial international Marketplaces Services marketplaces Revenue 2018 Revenue 2018 Revenue 2018 Revenue 2018 NOK 2,843m NOK 7,775m NOK 2,979m NOK 5,699m EBITDA 2018 EBITDA 2018 EBITDA 2018 EBITDA 2018 NOK 1,267m NOK 682m NOK 426m NOK 1,44
Slide 12: Schibsted's unifying strategy
Schibsted’s unifying strategy 12
Slide 13: Schibsted empowering people in their daily lives
Schibsted empowering people in their daily lives Contributes to a more eco- Reduces 1.45 million tons Enormous second-hand friendly and sustainable of greenhouse gas each benefit effect society year1 Trusted and independent Voicing societal trends and Defending democratic and journalism opinions hum
Slide 14: Three distinct business areas well positioned for growth
Three distinct business areas well positioned for growth “Strong network effects” “Turbocharged accelerator” Nordic News Media Next Marketplaces 193m 466m 123m Monthly visits Monthly visits Monthly visits “Trusted and iconic brands” …resulting in a Nordic-focused digital growth company with global a
Slide 15: A digital front-runner fuelled by cross divisional synergies
A digital front-runner fuelled by cross divisional synergies Integration Traffic Unmatched amount Nordic of touchpoints for News Media Next Marketplaces consumers with 193m 466m 123m large, unlocked Monthly visits Monthly visits Monthly visits potential Blink ads Targeted ads Distribution 15
Slide 16: Ambitions for continued long-term growth along multiple avenues
Ambitions for continued long-term growth along multiple avenues Tools with proven effect: Nordic News Next Marketplaces Media Business development Organically build new business New business Adjacent business Venture activities Size of bars indicates allocation of M&A resources Core business Interna
Slide 17: The Nordics: digital front-runners and a test lab
The Nordics: digital front-runners and a test lab for new technological initiatives The aggregate digital front-runner economy Belgium Highest level of digital capabilities in Denmark Europe and 75% are positive toward automation Estonia Finland Advantages in the Nordics Ireland ✓ The Nordics has th
Slide 18: Three functions forming Schibsted's foundation for growth
Three functions forming Schibsted’s foundation for growth • Efficient capital allocation Finance • Investment and cost discipline • Competent, entrepreneurial, fluid and collaborative organisation People • Talent acquisition and management • Strengthening data driven product development and advertis
Slide 19: Multiple concepts initiated over three decades, proven unicorn capabilities
Multiple concepts initiated over the last three decades, proven unicorn capabilities Selection of Schibsted successes Realised investments Select assets in Next portfolio CAGR 12 23% 10 8 6 4 2 0 2000 1 2 2018 3 CAGR Digital 12 24% Selected divested Selected closed 10 8 6 4 companies initiatives 2 0
Slide 20: Tenured and solid management supported by divisional teams
Tenured and solid management supported by excellent divisional teams ✓ ✓ Trond Berger CFO Kristin Skogen Lund CEO Mette Krogsrud ✓ ✓ ✓ Chief People & Corporate Affairs Anders Skoe Siv Juvik Tveitnes Raoul Grünthal EVP Next Sven Størmer Thaulow EVP Nordic Marketplaces EVP News Media (Growth & Financi
Slide 21: Nordic Marketplaces
NORDIC MARKETPLACES NORDIC MARKETPLACES
Slide 22: Unrivalled Nordic Marketplaces leadership positions
Unrivalled Nordic Marketplaces leadership positions Anders Skoe Value proposition Matching buyers and sellers, employers and employees Marketplaces Nordic Revenue EBITDA Position Traffic Sustainability Boosts circular 2,843 1,267 #1 193m economy saving in Norway and 1.45m tonns CO2 NOKm1 NOKm1 month
Slide 23: Nordic Marketplaces highlights
Nordic Marketplaces Nordic Marketplaces highlights Unrivalled Nordic Marketplaces leadership positions through Finn, Blocket and Tori Continue to capture adjacent markets with transaction triggered services Impressive financial track record with robust growth, high margins and strong cash conversion
Slide 24: Unrivalled leadership positions in each of its markets
Unrivalled Nordic Marketplaces leadership positions in each Nordic Marketplaces of its markets… Leadership positions Leadership positions Traffic Listings Revenue Traffic Listings Revenue Traffic Listings Revenue Generalist goods 1 1 1 1 1 1 Cars 1 1 Real estate 2 2 2 Jobs 2 1 Source: Company data 2
Slide 25: Strong financial performance
Nordic Marketplaces Strong financial performance Nordic Marketplaces revenue and EBITDA margin, NOKm Revenue EBITDA 2 843 2 702 2 488 2 260 2 333 2 205 48% 49% 47% 51% 51% 1 944 39% 38% 42% 42% 1 730 36% 1 470 49% 48% 46% 46% 45% 45% 17% 42% 1 097 1 192 909 (16%) 654 445 267 43 63 100 135 2000 2001
Slide 26: Finn is one of Norway's strongest brands
Nordic Marketplaces Finn is one of Norway’s strongest brands across all industries ü Established in 2000 #1 EUR 37.2 ü Unrivalled market leader in Revenue per internet capita all verticals ü 201 6m ü Visits per capita per year1 Unique visitors per week2 ü ü 1) Adobe – via FINN datawarehouse 2) FINN
Slide 27: Revenue growth driven by verticals
Nordic Marketplaces Revenue growth driven by verticals still a growth company – even 19 years after inception Diversified revenue base (2018) NOKm Advertising Generalist 12% goods Jobs 1,826 4% 33% 1,628 225 Travel and 1,451 other 203 200 8% 155 214 Motor 255 457 21% Real estate 22% 414 377 945 High
Slide 28: Jobs vertical
Nordic Marketplaces Jobs vertical Revenue1 # of employers/recruiters2 Indexed trend in ARPU3 600 NOKm 4 800 200 500 4 600 150 400 4 400 300 100 522 4 200 4 689 200 417 144 333 4 386 50 121 4 000 4 220 100 100 0 3 800 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities Jobmatch – reac
Slide 29: Real estate vertical
Nordic Marketplaces Real estate vertical Revenue1 # of agents2 Indexed trend in ARPU3 400 NOKm 3 000 200 2 500 300 150 2 000 200 1 500 2 787 100 354 2 658 2 601 162 297 1 000 140 100 236 50 100 500 0 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities Developers/New buildings Prope
Slide 30: Motor vertical
Nordic Marketplaces Motor vertical Revenue1 # of car dealers2 Indexed trend in ARPU3 350 NOKm 4 000 140 300 120 250 3 000 100 200 80 329 2 000 128 150 277 309 3 229 3 301 3 372 60 118 100 100 1 000 40 50 20 0 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities Digital purchase cont
Slide 31: Travel vertical
Nordic Marketplaces Travel vertical Revenue1 # of agents2 Indexed trend in ARPU3 130 NOKm 120 140 100 120 110 100 80 80 90 123 60 120 102 60 119 109 40 89 81 100 96 70 40 20 20 50 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities City packages Last minute travels Blocket Resor 1)
Slide 32: Blocket is a strong #1 in generalist goods, motor and jobs
Nordic Marketplaces Blocket is a strong #1 in generalist goods, motor and jobs Acquired by Schibsted in 2003 #1 EUR 11.7 Clear market leader in Revenue per internet capita generalist goods and motor 101 5m Visits per capita per year1 Unique visitors per week2 1) Extasol – Blocket data warehouse 2) E
Slide 33: Revenue growth driven by verticals
Nordic Marketplaces Revenue growth driven by verticals revenue turnaround underway Diversified revenue base (2018) NOKm Advertising 989 1,002 22% 15 925 Motor 13 Real estate 46% 17 1% 249 224 186 Jobs 10% Generalist 284 252 goods 290 21% 479 High and predictable cash conversion1 470 438 95% 95% 93%
Slide 34: Motor vertical
Nordic Marketplaces Motor vertical Revenue1 # of car dealers2 Indexed trend in ARPU3 500 NOKm 6000 120 400 5000 100 4000 80 300 3000 60 109 200 426 449 420 5 152 5 124 5 080 100 106 2000 40 100 1000 20 0 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities New effect-based pricing m
Slide 35: Generalist goods vertical
Nordic Marketplaces Generalist goods vertical Revenue1 # of listers2 Indexed trend in ARPU3 250 NOKm 3500 120 3000 100 200 2500 80 150 2000 60 100 219 205 1500 3 154 2 931 100 99 186 2 760 95 1000 40 50 20 500 0 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities Experiment with pr
Slide 36: Jobs vertical
Nordic Marketplaces Jobs vertical Revenue1 # of recruiters/employers2 Indexed trend in ARPU3 100 NOKm 1400 140 1200 120 80 1000 100 60 800 80 88 95 600 60 127 123 40 1 043 1 152 61 913 100 400 40 20 200 20 0 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities Premium products and o
Slide 37: Real estate vertical
Nordic Marketplaces Real estate vertical Revenue1 # of agents2 Indexed trend in ARPU3 120 28 NOKm 24 100 20 80 16 60 12 22 1 524 1 521 1 479 100 99 98 21 21 40 8 4 20 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 Market opportunities Property rental Holiday houses and rentals Developers/New build
Slide 38: Qasa - Very attractive unit economics and strong synergies
Nordic Marketplaces Qasa - Very attractive unit economics and strong synergies Significant potential… …to convert users to new model Monthly sign value1 • Qasa is a fully digital real estate rental platform, matching tenants and landlords Marketplaces Nordics Collaboration starts • Offering a secure
Slide 39: Schibsted has built Tori into a solid platform
Schibsted has built Tori into a solid platform for further Nordic Marketplaces potential initiatives ü Established by Schibsted in 2009 ü EUR 630m 335 ü GMV (the value of goods Items sold per hour sold through Tori in 2018) 4.1 1.2m Monthly visits per capita1 Unique visitors per week1 ü ü 1) Statist
Slide 40: Revenue growth driven by verticals
Nordic Marketplaces Revenue growth driven by verticals – strong growth in revenue #1 position in generalist goods vertical NOKm 100 Classifieds 24% 92 71 48 Other 2% 38% Revenue CAGR Advertising 73% 0 2016 2017 2018 Source: Company data 40
Slide 41: Significant ramp-up potential
Nordic Marketplaces Significant ramp-up potential Selected growth opportunities • Target adjacent services (e.g. • Expand position in the Finnish real • Launch Schibsted-concepts proven in insurance, purchase contract, payment estate market, especially in rentals Norway or Sweden and selectively sol
Slide 42: Impressive financial track record for Nordic Marketplaces
Nordic Marketplaces Impressive financial track record for Nordic Marketplaces Strong revenue growth with stellar margins Capital light business model with high cash conversion1 NOKm 95% 95% 93% 3 000 2 843 90% 10% 2 702 69% 2 488 80% 9% 64% 2 500 70% 8% 7% 59% 60% 2 000 6% 50% 54% 45% 45% 5% 42% 40%
Slide 43: Multiple vectors of growth within Nordic Marketplaces
Nordic Marketplaces Multiple vectors of growth within Nordic Marketplaces 1 2 3 4 Monetisation Product development New ventures M&A • Pricing model • Rating features • Vertical white spotting • Selective Nordic M&A • Advertising • Payment solutions across geographies e.g. rental market • Traffic gen
Slide 44: Nordic Marketplaces highlights
Nordic Marketplaces Nordic Marketplaces highlights Unrivalled Nordic Marketplaces leadership positions through Finn, Blocket and Tori Continue to capture adjacent markets with transaction triggered services Impressive financial track record with robust growth, high margins and strong cash conversion
Slide 45: Blink (Targeted ads) exemplifying digital front-runner capabilities
Blink (Targeted ads) – exemplifying Schibsted’s digital front- Nordic Marketplaces 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 ✓ ✓ ✓ P
Slide 46: Q&A Nordic Marketplaces
Q&A NORDIC MARKETPLACES
Slide 47: News Media
Foto: Bjarn Delebekk
Slide 48: World class digital media brands
World class digital media brands Siv Juvik Tveitnes Value proposition Leading provider of independent high quality journalism in Norway and Sweden on every platform News Media Revenue EBITDA Position Traffic Sustainability 7,775 682 #1 466m Fundamental force for in Norway and democracy NOKm1 NOKm1 m
Slide 49: News Media highlights
News Media News Media highlights Trusted, digital and iconic media brands Rapidly growing recurring online revenues Excellent product and tech capabilities Leveraging on Schibsted’s years of consumer insight and experience to further grow and develop digital solutions for the future 49
Slide 50: Willingness to pay for quality online news highest in Norway, Sweden and Finland
Willingness to pay for quality online news highest in Norway, News Media Sweden and Finland NOR 30% SWE 26% FIN 18% POL 16% DEN 15% 18% BEL NLD 14% 13% 30% ITA 12% 26% SUI 12% SVK 11% IRE 11% 15% SPA 11% ROU 11% 7% 16% FRA 11% 14% 8% POR 9% AUT 8% CZE 8% 11% 12% HUN 8% GER 8% BUL 8% 11% UK 7% 6% CRO
Slide 51: A focused digital strategy has led to solid growth in digital revenue
A focused digital strategy has led to a solid growth in digital News Media revenue streams A focused digital strategy for years, has resulted in an impressive revenue growth rate PRINT 17% ONLINE Revenue CAGR 3 015 2 734 2 489 2 520 2 390 1 988 1 432 1 149 1 014 1 008 774 874 618 388 2005 2006 2007
Slide 52: VG has the unrivalled #1 news position in Norway
VG has the unrivalled #1 news position in Norway News Media with 90% direct traffic Acquired in 1966 #1 >1bn Unrivalled market leader in digital revenue in 2018 Norway 90% 5.8m of traffic is direct2 online visits per day1 1) Company data, 2018 average 2) Includes web traffic only, excluding partner
Slide 53: VG has challenged itself for decades
News Media VG has challenged itself for decades – and continues to do so 53
Slide 54: Always using a 360 degree approach to storytelling
Always using a «360 degree» approach to how we tell and News Media distribute our stories 54
Slide 55: VG had a strong EBITDA margin of 18% in 2018
News Media VG had a strong EBITDA margin of 18% in 2018 Strong growth in online revenues …driven by robust growth in online advertising 2 000 30% 900 773 1 800 800 700 638 600 513 25% 500 1 600 400 824 300 882 200 23% revenue CAGR 1 400 1 017 20% 100 19% 0 1 200 18% 2016 2017 2018 16% Online adverti
Slide 56: Aftonbladet has the #1 position in Sweden
News Media Aftonbladet has the #1 position in Sweden, with 80% direct traffic Acquired in 1996 #1 >800m unrivalled market leader in online revenue in 2018 Sweden 80% 6.6m of visitors from own sites online visits per day1 and direct traffic2 1) Company data, 2018 average 2) Includes web traffic only,
Slide 57: Growth in digital revenues, solid EBITDA and good profitability in 2018
Growth in digital revenues, solid EBITDA and good profitability News Media in 2018 Growth in online revenues …despite stable online advertising revenue 2 500 30% 800 739 746 735 700 600 500 25% 400 2 000 300 200 100 20% 0 1 500 2016 2017 2018 1 040 943 Online advertising revenue (NOKm) 786 15% 14% 1
Slide 58: Business model for premium subscription brands has changed dramatically
The business model for our premium subscription brands News Media has changed dramatically #1, #2 Schibsted – Unrivalled market leader in > 900m Can you please provide phone Norway, strong #2 in Online revenue in 2018 pictures from Sweden subscription papers? 600k 5x Subscription revenues No of digi
Slide 59: Digital growth driven by growth in digital subscribers
The digital growth rate is driven by an impressive growth in News Media digital subscribers Growing online revenues… …supported by rising digital subs 4 000 20% 700 3 500 18% 601 589 600 16% 3 000 500 14% 500 2 500 12% 336 2 911 2 685 2 566 400 373 2 000 10% 350 1 500 8% 300 7% 7% 6% 6% 1 000 200 4%
Slide 60: Top journalistic quality converts customers
News Media Top journalistic quality converts customers 60
Slide 61: Unified product and tech initiatives speed up product development
Our unified product and tech initiatives News Media speed up product development Selected examples Live studio Accessible Schibsted Create State-of-the-art live studio at content VG premises management system Data driven advertisement Customisation of Personalised front pages (Curate) advertisement
Slide 62: Automated and personalised front page with promising results
We have launched an automated and personalised front page News Media – with promising results …addressed through automated and personalised …to increase traffic and subscription Individual interest and behaviours… front pages… conversion • Get an overview of the most important news • Explore and dis
Slide 63: Multiple vectors of growth within News Media
News Media Multiple vectors of growth within News Media 1 2 3 4 Monetisation Product development New ventures M&A • Premium subscription Harness data to … • Selective Nordic M&A • Enhance the depth of and price model • Personalise and improve UX the current subs • Content marketing • Personalise edi
Slide 64: News Media highlights
News Media News Media highlights Trusted, digital and iconic media brands Rapidly growing recurring online revenues Excellent product and tech capabilities Leveraging on Schibsted’s years of consumer insight and experience to further grow and develop digital solutions for the future 64
Slide 65: News Media's front-runner capabilities accelerate new digital services
News Media’s front-runner capabilities accelerate new digital News Media services Lendo growth has been accelerated through a combination of marketing and product integration • Promoting Lendo at Aftonbladet.se enables direct financing access and comparison for the consumers • Feeds views from sites
Slide 66: Foto: Bjarn Delebekk
Foto: Bjarn Delebekk
Slide 67: Next: Growth & Financial Services
NEXT: GROWTH & FINANCIAL SERVICES
Slide 68: Historical track record of incubating growth businesses
Historical track record of incubating growth businesses Raoul Grünthal Value proposition Driving change through innovation by investing in digital companies that strategically fit, scaling and helping them become market leaders Revenue EBITDA Position Traffic Sustainability #1 1,970 99 123m Empoweri
Slide 69: Growth highlights
Growth Growth highlights Proven ability to incubate future market leaders Robust investment track record and ability to transition into scale-ups Proven scalable platforms for international growth e.g Prisjakt Benefit from the Schibsted platform: innovative and entrepreneurial culture, traffic, data
Slide 70: We have created champions before and will do it again
We have created champions before and will do it again with Growth unique tools such as… Current growth portfolio Previously part of growth portfolio 70
Slide 71: Turbo-charged accelerator and unified platform
Growth …our turbo-charged accelerator and unified platform… Industrial investments within the growth unit have been accelerated through cross platform traffic, data harvesting and integration ✓ Traffic to and integration of high value sites… ✓ ✓ …creating data driven insight, which can be… Integrati
Slide 72: Broad distribution network
Growth …and broad distribution network Overview Schibsted Distribution – 2 delivery networks Distributed parcels across network, thousands • New business initiatives have yielded results ~500k newspapers * 7 nights per week • Significant increase in physical reach through 5 400 distribution innovati
Slide 73: Solid, diversified portfolio of thriving ventures
Growth Solid, diversified portfolio of thriving ventures Price Ed-tech eHealth Distribution Marketplaces Editorial Other comparison Minorities Majorities Schibsted invest in winning start-ups based on clearly defined investment criteria and with uncompromised capital discipline 73
Slide 74: Prisjakt – Swedish and Norwegian market leader
Prisjakt – Swedish and Norwegian market leader with Growth international growth potential Founded in 2002/Acquired in 2006 – Present in 8 countries #1 800k ✓ Leading price comparison service for consumer products Clear market leader Daily visits ✓ Strong growth in e-commerce Sweden and Norway Strong
Slide 75: We selectively allocate our capital with clear investment objectives
We selectively allocate our capital and adhere to a clear and rational Growth set of investment objectives… Investment objectives and rationale Investment criteria 1ü Outstanding entrepreneurs and teams Looking for consumer-facing businesses with market leading potential where Schibsted can use 2ü P
Slide 76: Stellar IRR performance
Growth …evidenced by our stellar IRR performance Historical investments, value created and IRR Strong value creation historically Strategic venture investments Track record of home runs, e.g., Blocket, Good investments Lendo and Prisjakt ~10 000 Limited losses on downside ~ 1 500 Leveraging
Slide 77: Multiple vectors of growth within the Growth division
Growth Multiple vectors of growth within the Growth division 1 2 3 4 5 Monetisation Product New ventures M&A Geographic development expansion • Advertisement • Ed-tech • Bolt-on • Adjacent services • Traffic and data • Health-tech • In-market • Adding features from consolidation • Distribution / oth
Slide 78: Growth highlights
Growth Growth highlights Proven ability to incubate future market leaders Robust investment track record and ability to transition into scale-ups Proven scalable platforms for international growth e.g Prisjakt Benefit from the Schibsted platform: innovative and entrepreneurial culture, traffic, data
Slide 79: Financial Services
Exciting positions in an attractive and rapidly developing financial services market Dan Ouchterlony Value proposition Empowering people to take well-informed financial decisions Revenue EBITDA Position Partners Sustainability #1 1,010 327 100+ Power is shifting Financial Services Loan broker in fro
Slide 80: Financial Services highlights
Financial Services Financial Services highlights Taking advantage of change in financial markets by building disruptive businesses Scaling Lendo locally and internationally Exciting portfolio and strong track record in building financial services companies Leveraging on the trusted and experienced S
Slide 81: Financial Services
Financial Services 2 81
Slide 82: Lendo empowers users to find and sign the best loan
Lendo empowers users to find and sign the best loan, Financial Services 80% of revenue fully automated – unique vs. competition Proposals – Application Credit scoring inbox with Partner sent offers process ~5% Lendo receive ~5% of all loans payed out to consumers by the 2 4 6 lender at the time of t
Slide 83: Lendo – European market leader within loan brokerage
Financial Services Lendo – European market leader within loan brokerage ✓ Digital process – one loan application reaching +25 banks Founded in 2007/Acquired in 2009 ✓ Favourable market trends #1 NOK ~20bn ✓ Market leader in Sweden and Norway Clear market leader loan volume per year Norway and Sweden
Slide 84: Strong development in underlying consumer finance market
Financial Services Strong development in underlying consumer finance market Development in household credit card debt vs personal loans, SEKbn Current market trends 120 135 CAGR 101 106 109 113 99 Consistent growth over last years 43 45 45 46 44 45 46 5% Positive consumer sentiment Stable regu
Slide 85: #1 in Sweden and Norway, #2 in Finland
#1 in Sweden and Norway, #2 in Finland, catching up to the Financial Services competition Market position1 #1 #1 #2 ✓ Lendo #1 by a large margin ✓ Lendo #1 with some margin ✓ Lendo #2 ✓ Developing faster than #2 in a growing ✓ Maintaining market share in a flattening ✓ Developing faster than #1 in a
Slide 86: Lendo displays virtuous reinforcing network effects
Financial Services Lendo displays virtuous reinforcing network effects A consumer applying at a marketplace has a More More higher chance of: customers lenders ✓ ✓ being approved ✓ ✓ receiving the best possible offer getting the full amount requested Better customer experience More and better offers
Slide 87: Creating value for partners, with low dependence on individual partners
Creating value for partners, with low dependence on Financial Services individual partners Personal loan partners, % of volume Personal loan partners, % of volume Largest partner Largest partner 13% 19% 87
Slide 88: Lendo impressive financial track record and capital light model
Lendo has an impressive financial track record and capital Financial Services light business model Strong growth in revenue with stellar margins Solid cash conversion1 and capital light business model NOKm NOKm Marketing expense as 49% 45% 48% % of sales 900 852 100% 18 17 120% 800 90% 704 16 700 80
Slide 89: Proven business model with international scalability potential
Financial Services Proven business model with international scalability potential Roll-out in Norway in 2012 2 years NOK 47m Time to breakeven Revenue year 2 Roll-out in Denmark in 2018 3-4 years DKK ~50m Time to breakeven Revenue year 2 Unique scalable platform due to the automated and capital ligh
Slide 90: Banking and finance undergoing significant change
Banking and finance is undergoing significant change, Financial Services opening up opportunities for agile players Regulatory 1 • • PSD2 gives new opportunities Local FSA implementing EU regulations 2 • Cloud and digital ID tech (Bank-ID) Tech • Enabling rapid creation and adoption of services Fina
Slide 91: Consistent, profitable growth since 2009
Financial Services Consistent, profitable growth since 2009 Financial Services revenue and EBITDA margin, NOKm 1 Revenue EBITDA 1 010 892 638 34% 405 432 34% 32% 25% 27% 23% 293 19% 173 11% 104 5% 20 49 10% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Note: Excluding financials for minorities e
Slide 92: Case study: Hypoteket first 100% digital mortgage in Sweden
Case study: Financial Services Hypoteket first 100% digital mortgage experience in Sweden Overview Business model • Schibsted invested in Hypoteket in 2015 2.5x during seed stage 2,5 Asset Managers • Accelerated and risk reduced by partnering with Schibsted Growth, e.g, supporting fund raising and c
Slide 93: Schibsted entered financial services by pioneering the aggregator layer
Schibsted entered financial services by pioneering Financial Services the aggregator layer, partnering with established providers Consumer Pension/ Electricity Insurance Mortgage SME credit loans Savings Aggregators Providers Recent investments into high quality providers 93
Slide 94: Multiple vectors of growth within Financial Services
Financial Services Multiple vectors of growth within Financial Services 1 2 3 4 Monetisation Product development M&A Geographic expansion • Win existing markets • Build new products • New venture in Sweden, Norway e.g. Bynk, Hypoteket, investments e.g. and Finland Lendo for business, Hypoteket, Bynk
Slide 95: Financial Services highlights
Financial Services Financial Services highlights Taking advantage of change in financial markets by building disruptive businesses Scaling Lendo locally and internationally Exciting portfolio and strong track record in building financial services companies Leveraging on the trusted and experienced S
Slide 96: Q&A
Q&A
Slide 97: Financials and Forecasts
ü FINANCIALS AND FORECASTS 97
Slide 98: Schibsted has proven superior shareholder value creation capabilities
Schibsted has proven superior shareholder value creation capabilities Share price development (NOK) 400 Announcement of Equity issue of Acquisition of 10% of B shares Adevinta Spin-off JV with Telenor Milanuncios 350 Buyout of Telenor and SPH from Brazil and Chile Equity issue of 300 Deal with Naspe
Slide 99: Proven financial performance track record
Proven financial performance track record Robust revenue growth1 Resilient EBITDA performance1 Strong cash flow and cash conversion1,2 (NOK million) (NOK million) (NOK million) CAGR total revenue 2.1% 14 000 2 000 1 827 50% 700 120% 12 511 1 716 581 522 12 011 12 275 1 800 45% 600 12 000 1 556 100%
Slide 100: Revenue and EBITDA split
Revenue and EBITDA split Revenue split 2016-2018 EBITDA split 2016-2018 12 275 12 511 14 000 12 011 3 000 638 892 1 010 12 000 1 970 1 716 1 827 1 854 1 937 2 500 1 556 302 327 170 99 10 000 2 000 185 115 8 000 1 500 759 682 644 8 137 7 873 7 775 6 000 1 000 4 000 500 1 122 1 135 1 267 2 000 - 2 488
Slide 101: Our financial reporting structure disclosure going forward
Our financial reporting structure disclosure going forward Other Nordic Marketplaces Norway Sweden (incl. Shpock, Finland & HQ) Subscription Other news media News Media VG Aftonbladet newspapers (incl. Publishing) Growth Distribution Prisjakt Group Other growth Financial Services Lendo established L
Slide 102: Financial targets and policies
Financial targets and policies Nordic Revenue Nordic Marketplaces Marketplaces Targeting revenue growth of 8-12% for the division in the medium to long-term News EBITDA News Media Media Stable EBITDA margin for the division M&A M&A activities targeted primarily to strengthen market positions and bol
Slide 103: Aligning management and employee incentives to shareholder value
Aligning management and employee incentives to shareholder value Key attributes of the LTI plan ✓ At the 25th percentile, the face value of ✓ Restricted shares and Performance shares - performance the Performance Base shall vest at 50% calculation based on Total Shareholder Return relative to a peer
Slide 104: Sale of shares following demerger
Sale of shares following demerger • Provided that prevailing market conditions so permit, Schibsted intends to sell down 5% Adevinta shares in the market. • The divestment will take place in the form of Adevinta B-shares. • The Tinius Trust intends to divest a limited portion of its direct holding i
Slide 105: Active and significant long-term owner of Adevinta
Active and significant long-term owner of Adevinta Schibsted ASA will continue to be an active, significant long-term owner of Adevinta – the global leading online classifieds company Collaboration through knowledge and competence sharing Knowledge Schibsted will exercise its ownership through repre
Slide 106: Q&A
ü Q&A 106
Slide 107: Concluding remarks
CONCLUDING REMARKS
Slide 108: The core elements within Schibsted
The core elements within Schibsted Historical track record of incubating growth businesses Unrivalled Nordic marketplaces leadership positions through Finn, Blocket and Tori World class digital media brands Strong growth in a fast developing financial services market through Lendo et al. Proven fina
Slide 109: To conclude
To conclude “Strong network effects” “Trusted and iconic” “Turbo charged accelerator” 110