Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Vend Marketplaces Asa B — Q1 2020 Earnings Presentation
43 slides from Vend Marketplaces Asa's earnings presentation, May 5, 2020
Slide 1: Q1 2020 Results
Q1 2020 Results CEO Kristin Skogen Lund CFO Ragnar Kårhus 06 May 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: Weathering the COVID-19 storm while managing the long-term structural changes
Weathering the COVID-19 storm while managing the long- term structural changes 3
Slide 4: Unifying strategy – building the Nordic digital front-runner
Unifying strategy – building the Nordic digital front-runner 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 positions Schibsted is more than the sum o
Slide 5: News Media's instrumental role in society emphasized in times of crisis
News Media’s instrumental role in society emphasized in times of crisis Strong growth in traffic on primary news destination after COVID-19 outbreak Total page views per day 50,000,000 50,000,000 40,000,000 40,000,000 30,000,000 30,000,000 20,000,000 20,000,000 10,000,000 10,000,000 0 0 January Febr
Slide 6: Growth and profitability affected by COVID-19 in March
Growth and profitability affected by COVID-19 in March Schibsted Group Schibsted excl. Adevinta Adevinta Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) +1% 4,818 4,576 4,357 -4% 3,037 3,089 3,026 +8%** 1,820 1,545 1,351 723* (610) 856 417* 700 306* (336) 418 (275) 438 416 28
Slide 7: Deteriorating trend for Nordic Marketplaces and News Media in March
Schibsted excl. Adevinta Deteriorating trend for Nordic Marketplaces and News Media in March Nordic News Lendo Schibsted Marketplaces Media revenues Growth revenues revenues +1%* -4%** 6%* +10%* Continued growth in Record high traffic, 19%* revenue growth in Revenue growth driven by Sweden 25%** gro
Slide 8: We are well prepared for a soft market going forward
We are well prepared for a soft market going forward Financial News Media: Strong Nordic Services financials: Marketplaces: Increased cost and Growth: program to Capacity to act on Tight cost control Reduced ensure mid- and investment to curb margin investments long-term healthy opportunities declin
Slide 9: Nordic Marketplaces
Nordic Marketplaces Volvo V90 D4 Inscription Eu6 190hk Fullmoms 309 800 kr @aqasa Rent or rent out your apartme safely with Care-free renting with the seé support and simplicity you des RENT OUT A HOME Are you thinking about subletting your home?
Slide 10: Revenue growth slowdown particularly affected by COVID-19 from mid-March
Revenue growth slowdown particularly affected by COVID-19 from mid-March Nordic Marketplaces Revenue split Nordic Marketplaces Revenues (NOKm), EBITDA margin (%) Share of Q1 2020 revenues (%) +1%* Other 722 743 9% Other 651 online classifieds Motor 11% 29% 43% 40% 40% (39%) Advertising 14% 14% 24% Q
Slide 11: Job and Travel verticals most affected in Q1, while good growth in advertising
Job and Travel verticals most affected in Q1, while good growth in advertising Marketplaces Norway Revenues (NOKm), EBITDA margin (%) Highlights Q1 2020 0% • 3% decline in classified revenues, 17% growth 480 480 in advertising 408 • Classifieds decline due to COVID-19 impact, particularly Jobs and T
Slide 12: Negative COVID-19 effect improving towards the end of April
Negative COVID-19 effect improving towards the end of April Marketplaces Norway New approved ads in main verticals, monthly growth YoY Monthly visits growing 16% in April YoY (million) Jobs Real Estate Motor 120 6% 5% 110 3% 3% 100 -4% -8% -6% 90 -10% -10% -13% 80 70 -31% 60 50 -45% Jan Feb Mar Apr
Slide 13: Continued growth driven by motor vertical; margin decline due to investments
Continued growth driven by motor vertical; margin decline due to investments in sales and product & tech capabilities Marketplaces Sweden Revenues (NOKm), EBITDA margin (%) Highlights Q1 2020 +5%* • The positive development continues in Q1, 239 despite COVID-19 affected second half of March 221 218
Slide 14: Motor and Job listings in second half of March and April affected by COVID-19
Motor and Job listings in the second half of March and April affected by COVID-19; strong traffic development in April Marketplaces Sweden New approved ads in Motor and Job vertical, monthly growth YoY Monthly visits growing 5% in April YoY (million) Motor Job 100 2% 90 -1% 80 -9% -10% 70 -14% -19%
Slide 15: News Media
News Media 15 < _Corona-viruset: Slik spres viruset No. Hele landet Q Sok etter kommune elle fyke 7619 registrert smittet totalt 206 dode innbyggere fra Norge fay Forsvaret bygger komplett sjukhus » Alvsjomassan I Stockholm inte mna byn: Folk dér > Vakias av italiensk polis Varlden efter corona - 4
Slide 16: Revenue decline in advertising resulted in lower EBITDA margin in Q1
Revenue decline in advertising resulted in lower EBITDA margin in Q1 News Media Revenue split News Media Revenues (NOKm), EBITDA margin (%) Share of Q1 2020 revenues (%) -4%* 1,897 1,855 Other 1,757 16% Subscription (of which 14%-points 36% digital) Casual sales 17% 7% 6% (4%) 2% Q1 2018 Q1 2019 Q1
Slide 17: Accelerated decline in advertising revenues curbed by digital subscriptions
Accelerated decline in advertising revenues curbed by good traction for digital subscriptions Strong growth in digital Advertising revenues negatively affected subscription revenues by COVID-19 and gaming regulation Norway (NOKm) Sweden (NOKm) NOKm 25%* -10%* 242 387 203 325 -26%* 168 161 263 119 82
Slide 18: Building the future News Media organization
Building the future News Media organization Targeting cost reductions of NOK 500m by 2021 Accelerating the shift to Targeting 2021 cost level NOK 500m lower than 2019 digital sustainability Key focus areas 500 • More agile, less complex • NOK 250m of cost reductions organization identified during Q1
Slide 19: Next Financial Services & Growth
Next Financial Services & Growth 19
Slide 20: Continued strong growth in Sweden, stable development quarter-on-quarter in Norway
Continued strong growth in Sweden, stable development quarter-on-quarter in Norway Lendo Group Revenues (NOKm), EBITDA margin (%) Highlights Q1 2020 +6%* • Continued double-digit growth in Sweden and 250 strong performance in Denmark 229 215 • Stable QoQ development in Norway, but still down YoY 44%
Slide 21: Accelerated revenue development in Schibsted Growth, increased cost level
Accelerated revenue development in Schibsted Growth, increased cost level Schibsted Growth Mixed development across portfolio Revenues (NOKm), EBITDA margin (%) Revenue growth Q1 2020 vs. last year (%) +10%* Distribution New business: 110% 563 503 (Share of Growth 479 total**: 62%) Legacy business:
Slide 22: Finance
Finance 22 ———— 19:22 Schibsted Who we are \Wie're on an ambitious mission to provide lead online marketplaces, build world-class media houses ‘and help great companies seal. ‘SEEBRAND MOVIE. Datamaskiner& tbehor ‘Telefon & GPS © ‘Sport & ruts © srs pane Husholdningsapparater Gamer Zone JANUAR saile
Slide 23: EBITDA development (NOKm)
Schibsted excl. Adevinta EBITDA development (NOKm) 418 -9 -81 -12 +3 285 -7 -27 EBITDA Nordic News Media Financial Lendo expansion Growth Other/HQ EBITDA Q1 2019 Marketplaces Services ex Q1 2020 Lendo expansion 23
Slide 24: Q1 income statement Schibsted excl. Adevinta
Schibsted excl. Adevinta Q1 income statement Schibsted excl. Adevinta Income statement First Quarter (NOK million) 2019 2020 Operating revenues 3,089 3,026 Operating expenses (2,671) (2,742) Gross operating profit (loss) - EBITDA 418 285 Depreciation and amortisation (208) (193) Loss mainly related
Slide 25: Q1 income statement Schibsted Group
Consolidated figures Q1 income statement Schibsted Group Income statement First Quarter (NOK million) 2019 2020 Operating revenues 4,576 4,818 Operating expenses (3,720) (4,118) Gross operating profit (loss) - EBITDA 856 700 Mainly explained by reduced share of profit from OLX Brazil and Indonesia i
Slide 26: Underlying tax rate excl. Adevinta
Schibsted excl. Adevinta Underlying tax rate excl. Adevinta • The underlying tax rate, excluding Adevinta, is 24.8% • The reported tax rate is 36% in Q1 2020 • Generally, Schibsted reports a tax rate exceeding the applicable nominal tax rates primarily as an effect of losses for which no deferred ta
Slide 27: Q1 EBITDA, operating cash flow and capex excl. Adevinta
Schibsted excl. Adevinta Q1 EBITDA, operating cash flow and capex excl. Adevinta EBITDA Operating cash flow Capex (NOKm) (NOKm) (NOKm) -32% 418 -64% 285 276 +36% 139 98 102 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 27
Slide 28: Low financial gearing and improved debt maturity profile
Schibsted excl. Adevinta Low financial gearing and improved debt maturity profile NOK 1bn bond issued in No dividend to be Share buyback program Ongoing ambition for April, refinancing bond with paid for 2019; announced in July 2019, M&A and growth maturity in June 2020 Dividend policy stands firm c
Slide 29: Continued focus on mid- to long-term growth investments
Continued focus on mid- to long-term growth investments 2020 investment level reduced from previously planned around NOK 150m to NOK 85-95m EBITDA Description investment Operating segment 2020 Lendo expansion for 2020 reduced Financial compared to 2019 NOK 60-70m Services Investing in innovative pro
Slide 30: Financial targets and policies
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 M&A M&A activities targeted primarily to strengthen mark
Slide 31: Key takeaways Q1 2020
Key takeaways Q1 2020 Significant COVID-19 Well positioned to Long-term strategy effect on operations weather the storm and targets stand firm Close to all Reducing cost to maintain Good growth pipeline for employees working high margins in Nordic market leading Nordic from home Marketplaces Marketp
Slide 32: Appendices
Appendices Spreadsheet containing detailed Q1 2020 and historical and analytical information can be downloaded at www.schibsted.com/ir
Slide 33: New reporting structure effective Q1 2020; EBITDA effects for 2019
New reporting structure effective Q1 2020; EBITDA effects for 2019 Old reporting EBITDA effects New reporting Nordic Marketplaces Nordic Marketplaces 1,421 1,360 -60 News Media News Media 760 -128 633 Financial Services Financial Services 170 -1 169 Growth Growth 124 -26 98 Other/Headquarters Other/
Slide 34: Key operations excl. Adevinta [1/2]
Schibsted excl. Adevinta Key operations excl. Adevinta [1/2] News Media First quarter Year Nordic Marketplaces First quarter Year (NOK million) 2020 2019 Change 2019 (NOK million) 2020 2019 Change 2019 Advertising revenues 529 648 -18% 2,559 Classifieds revenues 574 559 3% 2,350 -of which digital 34
Slide 35: Key operations excl. Adevinta [2/2]
Schibsted excl. Adevinta Key operations excl. Adevinta [2/2] Financial Services First quarter Year Growth First quarter Year (NOK million) 2020 2019 Change 2019 (NOK million) 2020 2019 Change 2019 Operating revenues 293 273 7% 1,054 Operating revenues 563 503 12% 2,165 EBITDA 38 57 -33% 169 EBITDA (
Slide 36: Q1 cashflow excl. Adevinta
Schibsted excl. Adevinta Q1 cashflow excl. Adevinta Cash flow - Schibsted excl. Adevinta First quarter (NOK million) 2019 2020 Reduction primarily due to temporary Profit (loss) before taxes 158 77 postponement of payments resulting Depreciation, amortisation and impairment losses 216 193 from gover
Slide 37: Group EBITDA waterfall (NOKm)
Consolidated figures Group EBITDA waterfall (NOKm) 856 -9 -81 +3 -19 700 -27 -22 EBITDA Nordic News Media Financial Growth Other/HQ Adevinta EBITDA Q1 2020 Marketplaces Services Q1 2020 37
Slide 38: Q1 EBITDA, operating cash flow and capex
Consolidated figures Q1 EBITDA, operating cash flow and capex EBITDA Operating cash flow Capex (NOKm) (NOKm) (NOKm) -18% 856 -31% 778 700 538 +28% 258 202 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 38
Slide 39: Q1 cashflow Schibsted Group
Consolidated figures Q1 cashflow Schibsted Group Cash flow - Consolidated First quarter (NOK million) 2019 2020 Profit (loss) before taxes 514 (231) Depreciation, amortisation and impairment losses 328 335 Net effect pension liabilities (65) (46) Share of loss (profit) of joint ventures and associat
Slide 40: Underlying tax rate Schibsted Group
Consolidated figures Underlying tax rate Schibsted Group • The underlying tax rate is 29.2% • The reported tax rate is 67% in Q1 2020, compared to 38% in Q1 2019 • Generally, Schibsted reports a tax rate exceeding the applicable nominal tax rates primarily as an effect of losses for which no deferre
Slide 41: 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 (30 April 2020) 3,543,657 1,383,307 Number of shares outstanding 104,459,958 129,301,066 Free float* 70% 76% Sh
Slide 42: 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 50.3% 54.9% 2 Folketrygdfondet 8,590,282 11,167,929 19,758,211 8.5% Number of shareholders 4,099 4,329 3 Fidelity Manag
Slide 43: 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
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