Vend Marketplaces Asa · OSL:VEND
Vend Marketplaces Asa — Schibsted — Q1 2015 Earnings Presentation
50 slides from Vend Marketplaces Asa's earnings presentation, May 8, 2015
Slide 1: Quarterly Results Q1 2015
QUARTERLY RESULTS Q1 2015 CEO Rolv Erik Ryssdal, CFO Trond Berger 8 May 2015
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: Agenda
AGENDA ■ Offer to acquire Hemnet.se ■ Online Classifieds ■ Media Houses ■ Finance ■ Summary Q1 2015 3
Slide 4: Hemnet a prime asset in Sweden
EXPANDING IN SWEDISH REAL ESTATE ONLINE CLASSIFIEDS HEMNET A PRIME ASSET IN SWEDEN ■ Clear market leader: ■ 2x the traffic of its closest competitor ■ 100% of listing objects ■ 51% unaided brand awareness* ■ 2014 revenues SEK 162 million, EBITDA SEK 34 million ■ Listing fees introduced 1 July 2013 ■
Slide 5: Swedish real estate market
LEADER IN A EUR 24 MILLION ONLINE MARKET WITH GROWTH POTENTIAL – 80-85% OF MARKETING SPEND STILL ON PRINT SWEDISH REAL ESTATE MARKET ■ Business model aligns interest between realtors and Hemnet ■ Total real estate marketing spending in Sweden is EUR 160 million. Approx 15%-20% is online* ■ In connec
Slide 6: Expanding in Swedish real estate: offer to acquire Hemnet.se
OFFER TO ACQUIRE MARKET LEADER HEMNET.SE EXPANDING IN SWEDISH REAL ESTATE Ownership structure ■ Schibsted has made a conditional offer for 100 percent of Hemnet.se Accepted bid ■ Values Hemnet at SEK 1,500 million (EV) ■ Offer conditional on Schibsted 25% 25% 34% 16% acquiring all shares and approva
Slide 7: Agenda
AGENDA ■ Offer to acquire Hemnet.se ■ Online Classifieds ■ Media Houses ■ Finance ■ Summary Q1 2015 7
Slide 8: Online Classifieds
pouTts ge conc Co M RETRISE yorre
Slide 9: A global leader in online marketplaces
A GLOBAL LEADER IN ONLINE MARKETPLACES… ■ 6,800 Employees ■ 15bn Revenue (NOK) ■ 26 Countries ■ #1 in General Classifieds in 24 markets ■ Reaching >200m people worldwide Q1 2015 9
Slide 10: Value creation through in-market focus
VALUE CREATION THROUGH IN-MARKET FOCUS ■ Continued organic growth in key online classifieds markets ■ Solid development in France – tapping into the real estate market ■ Fast growing revenues and traffic in Italy ■ Strong development in Shpock – entering new markets ■ Bolt on acquisitions leverage e
Slide 11: Strong traffic growth in Europe and emerging markets in Q1
STRONG TRAFFIC GROWTH BOTH IN EUROPE AND IN EMERGING MARKETS IN Q1 Traffic growth European portfolio* Traffic growth outside Europe** 1,200,000,000 Y/Y growth 350,000,000 Y/Y growth 1,000,000,000 20% in March 300,000,000 89% in March 250,000,000 Monthly visits Monthly visits 800,000,000 200,000,000
Slide 12: Steady, high growth rate – solid margins in France
STEADY, HIGH GROWTH RATE – SOLID MARGINS IN FRANCE France 50 +20% 100% ■ Steady growth with good contribution from key revenue drivers: 40 80% ■ Display advertising growth of 31% (local+national) - market share of 1.5% Million EUR 30 70% 68% 71% 60% 20 40% ■ Continued growth for premium features and
Slide 13: Real estate stand-alone product well received in the market
REAL ESTATE STAND-ALONE PRODUCT WELL RECEIVED IN THE MARKET ■ Gradual ramp up of new revenues, starting in Q1 2015 with an uplift of high ARPU Real estate customers automatic upload link customers control their own ■ Strong growth in direct customers inventory on the site – ■ 25,000 real estate agen
Slide 14: Spain back to revenue growth of 10%
SPAIN BACK TO REVENUE GROWTH OF 10%* ■ Revenue growth driven by macro and internal improvement ■ Jobs important growth driver ■ Improved efficiency in the sales teams and lower churn ■ Product development and integration of Milanuncios lay the foundation for increased monetization in the coming quar
Slide 15: Continued improvements in employment drive volume and revenue growth
CONTINUED IMPROVEMENTS IN EMPLOYMENT DRIVE VOLUME AND REVENUE GROWTH Sale of new contracts +33% Y/Y in Q1 for InfoJobs – deferred revenue model Traffic development (million visits) Registered unemployment New job posts per week in InfoJobs 40 7,000.000 2,500 35 6,000.000 2,000 30 5,000.000 25 1,500
Slide 16: Solid traffic growth for all sites
0 20 40 60 80 100 120 140 180 160 May-2013 Jul-2013 Sep-2013 Web Nov-2013 Jan-2014 Mar-2014 m. site May-2014 Jul-2014 Sep-2014 Apps Nov-2014 Jan-2015 Mar-2015 0 20 40 80 100 120 140 160 180 60 May-2013 Jul-2013 Sep-2013 Web Nov-2013 Jan-2014 Mar-2014 Total Monthly Visits indexed (May 2013 – Mar 2015
Slide 17: Strong traffic and revenue growth for Subito.it
STRONG TRAFFIC AND REVENUE GROWTH FOR ITALIAN MARKET LEADER SUBITO.IT Total Monthly Visits indexed Total Monthly Revenues indexed (Jan 2010 – Mar 2015) (Jan 2010 – Mar 2015) 600 1.000 Apps m.site Web 46% YoY revenue 500 800 growth in Q1 2015 400 3.6x Kijiji.it desktop traffic 3.5x Kijiji.it app down
Slide 18: Building position in cars and real estate verticals in Italy
BUILDING POSITION IN CARS AND REAL ESTATE VERTICALS IN ITALY Volume and traffic leadership in cars Number of car ads (Sep‘13-Mar‘15, thousands) 450 430 410 390 370 350 330 Autoscout24.it 310 290 270 250 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 13 13 13 13 14 14 14
Slide 19: Mixed development in Finn.no
MIXED DEVELOPMENT IN FINN.NO Norway 400 +1% 80% ■ Revenue growth in real estate +18% Million NOK 300 60% ■ Strong traffic growth for Torget – Number of private ads increased 2.7x Y/Y 200 40% 45% 42% 40% ■ Revenue growth ex Torget freemium 100 20% effect +5% 0 0% ■ Soft development in display – new Q
Slide 20: Good growth in new verticals
GOOD GROWTH IN NEW VERTICALS Sweden (Blocket/Bytbil) 250 +10%* 100% ■ 5 percent revenue growth supported by growth in new verticals 200 80% ■ Strong inflow of job ads. Clearly market Million SEK 150 60% leading in traffic terms (Blocket 59% Jobb+StepStone) 100 51% 52% 40% ■ Movement from private car
Slide 21: Solid growth in investment phase, supported by Naspers agreement
SOLID GROWTH IN INVESTMENT PHASE, SUPPORTED BY NASPERS AGREEMENT ■ Successful integration of Schibsted and Naspers Approved new ads per day Investment sites executed phase portfolio +55% Y/Y* 360,000 ■ Brazil: The new, merged OLX.br is now our second largest site after Leboncoin and growing fast 320
Slide 22: Good development for OLX in Brazil after merger
GOOD DEVELOPMENT FOR OLX IN BRAZIL AFTER MERGER Strong ad insertion growth New Postings (indexed, 1/1/2015 = 1) 4.0 3.5 3.0 2.5 2.0 1.5 OLX (new) 1.0 BN (old) OLX 0.5 (old) 0.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 2015 Week number Source: Internal DW, AT Internet Q1 2015 22
Slide 23: Native app Shpock with continuous strong traction
NATIVE APP SHPOCK WITH CONTINOUS STRONG TRACTION - TO BE ROLLED OUT IN NEW MARKETS Mobile-only marketplaces expand our markets through new audiences and new volume ■ Rapid growth in downloads and new listings in Germany and Austria ■ Top rankings in app stores ■ Most downloaded next-gen marketplace
Slide 24: Mobile innovation top priority
CLOSE TO 50% OF TRAFFIC TO APPS OR MOBILE OPTIMIZED SITES MOBILE INNOVATION TOP PRIORITY ■ Mobile dominate product development pipeline ■ Next gen app (iOS and Android) with social features launched in 6 countries ■ Central mobile development team to pilot new functionality in Spain before global ro
Slide 25: Media Houses
MEDIA HOUSES 25
Slide 26: Schibsted collecting a broad range of awards
FOCUS ON HIGH QUALITY EDITORIAL PRODUCTS SCHIBSTED COLLECTING A BROAD RANGE OF AWARDS FOR INNOVATION AND JOURNALISM 16 out of 21 awards at “Media Awards of the Year” to Schibsted media ■ Newspaper of the Year ■ Website of the Year VG VG.no ■ Newspaper Magazine of the Year ■ News Website of the Year
Slide 27: VG and Aftonbladet: market slow-down in digital advertising
VG AND AFTONBLADET MARKET SLOW-DOWN IN DIGITAL ADVERTISING HAMPERS MARGIN DEVELOPMENT Digital newspapers with clearly leading positions in Norway and Sweden 600 60% 600 60% 500 50% 500 50% 400 40% 400 40% Million NOK Million NOK 300 30% 300 30% 200 15% 15% 20% 200 20% 12% 12% 9% 7% 100 10% 100 10% 0
Slide 28: Subscription newspapers Norway: stable margins
SUBSCRIPTION NEWSPAPERS NORWAY STABLE MARGINS AS DIGITAL REVENUES GROW AND COSTS ARE REDUCED Schibsted Norge Subscription newspapers ■ Maintaining readership revenues 1000 60% 900 800 50% ■ Continued cost savings 700 Million NOK 600 40% ■ Print advertising revenues –18% 500 30% 400 300 20% ■ Online
Slide 29: Data driven products key to secure growth in digital advertising
DATA DRIVEN PRODUCTS KEY TO SECURE GROWTH IN DIGITAL ADVERTISING ■ Centralized data driven products in Norway and Sweden ■ All Schibsted’s national sites in one product ■ Advertiser can buy audience segments based on Schibsted’s user data, also programmatically ■ Centralized sales teams across Media
Slide 30: Schibsted Growth Sweden: continued growth and investments
SCHIBSTED GROWTH SWEDEN CONTINUED GROWTH AND INVESTMENTS IN MARKET POSITIONS ■ 16% underlying revenue growth ex Personal finance concept Lendo launched in Finland in cooperation with Tori.fi Hitta.se ■ The personal finance sites and price comparison site Prisjakt drives growth ■ Let’s Deal now bigge
Slide 31: Prisjakt – strong growth in price comparison
SCHIBSTED GROWTH SWEDEN PRISJAKT – STRONG GROWTH IN PRICE COMPARISON ■ Strong revenue growth in price comparison site Prisjakt ■ Rolled out in several additional markets – Norway, UK, New Zealand, Ireland ■ Unique database ■ Revenue growth 48% in Q1 ■ Click growth rate 38% in Q1 Q1 2015 31
Slide 32: Finance
FINANCE Q1 32 2015
Slide 33: EBITDA development in Q1
EBITDA DEVELOPMENT IN Q1 Million NOK 410 (34) 57 (11) (38) (13) 15 (10) 376 Aspiro divested Spain -5 as of 1 March Italy -25 2015 EBITDA Schibsted Schibsted OLC France OLC Norway OLC Other Online Other (HQ, EBITDA Q1 2014 Norge Sverige and Sweden classifieds 20 Minutos Q1 2015 Investment Aspiro and
Slide 34: Income statement Schibsted Group
INCOME STATEMENT SCHIBSTED GROUP (NOK million) Q1 2015 Q1 2014 Operating revenues 3,694 3,710 Operating expenses (3,318) (3,300) Positively affected by gain in Gross operating profit (EBITDA) 376 410 connection with establishment of Depreciation and amortization (118) (114) Naspers JVs. Negative EBI
Slide 35: Digital investments continue in 2015
DIGITAL INVESTMENTS CONTINUE IN 2015 Online classifieds • Estimated spending to be closer to EUR 100 Investment phase million in 2015 • Investments expensed and affecting EBITDA Web TV negatively with around NOK 100 million – mainly VG and Aftonbladet New online • Increased investments of NOK 100-20
Slide 36: Stable, strong financial position
STABLE, STRONG FINANCIAL POSITION Debt maturity profile ■ Diversified debt structure both by 3,000 maturity and sources 2,500 2,000 ■ Net Interest Bearing Debt 1,500 NOK 2.5 billion 1,000 500 ■ NIBD/EBITDA* at 1.2x end of Q1 0 < 1 yr < 2 <3 <4 <5 >5 yrs yrs yrs yrs yrs *) NIBD/EBITDA according to ba
Slide 37: Dividend of NOK 3.50 proposed
DIVIDEND OF NOK 3.50 PROPOSED Dividend policy (summary) 5.00 Schibsted targets a pay-out ratio over time 4.50 NOK per share in the range of 25% to 40% of cash flow 4.00 3.50 3.50 ■ High dividend compared to the target 3.00 range 2.50 2.00 ■ A balanced dividend level in a period 1.50 of digital inves
Slide 38: Underlying tax rate of around 29%
UNDERLYING TAX RATE OF AROUND 29% ■ Reported tax rate that may deviate significantly from the nominal tax rates in our markets. The main reasons are: ■ Share of profit (loss) of joint ventures and associated companies being reported net of tax ■ Unrecognised tax benefits from tax losses in Online cl
Slide 39: Key financial figures
KEY FINANCIAL FIGURES Earnings per share Cash flow from operating activities/share NOK NOK 10.00 7.94 8.00 8.00 6.17 6.00 4.98 4.33 3.81 3.88 6.00 4.00 3.05 2.18 4.00 2.00 1.72 2.00 0.50 0.06 0.43 0.00 0.00 -2.00 -0.57 -0.17 -2.00 -0.73 -0.32 -4.00 -1.84 -3.54 -4.00 -6.00 Q113 Q213 Q313 Q413 Q114 Q2
Slide 40: Summary
SUMMARY
Slide 41: Key takeaways
KEY TAKEAWAYS ■ Growth and value creation in Online classifieds ■ Continued organic growth – Southern Europe, large untapped potential ■ Structural agreements – successful integration with OLX in emerging markets ■ Bolt-on acquisitions – Hemnet acquisition to broaden revenue base in Sweden ■ Continu
Slide 42: Appendices
APPENDICES Spreadsheet containing detailed Q1 2015 and Historical and analytical Information can be downloaded from www.schibsted.com/ir Q1 42 2015
Slide 43: Basic information
BASIC INFORMATION Ticker Oslo Stock Exchange: SCH Reuters: SBST.OL Bloomberg: SCH NO Number of shares (5 May 2015) 108,003,615 Treasury shares (5 May 2015) 571,316 Number of shares outstanding 107,421,397 Free float* 73% Share price (5 May 2015) NOK 461.10 Market cap (5 May 2015) NOK 49.5 bn., EUR 5
Slide 44: Key financial figures
KEY FINANCIAL FIGURES Per Q1 Full year Schibsted Media Group 2015 2014 2014 Gross operating profit (EBITDA) (NOK million) 376 410 1,941 Gross operating profit (EBITDA) ex new ventures (NOK million) 502 551 2,444 Operating margins (%): Operating margin (EBITDA) 10 11 13 Operating margin (EBITDA) ex n
Slide 45: Capital structure
CAPITAL STRUCTURE Per Q1 Full year Schibsted Media Group 2015 2014 2014 Investments (NOK million): Operational investments (capex) 129 171 630 Shares and other holdings 568 475 1 572 Interest bearing borrowings (NOK million) 2 752 2 078 2 828 Net interest bearing debt (NOK million) 2 467 1 771 2 083
Slide 46: Shareholder register
SHAREHOLDER REGISTER Data as of 31 March 2015 Rank Name Holding Share 1 Blommenholm Industrier AS 28,188,589 26.1 % 2 Folketrygdfondet 6,695,977 6.2 % 3 Goldman Sachs & Co Equity Segregation * 5,168,582 4.8 % 4 NWT Media As 4,000,000 3.7 % 5 The Northern Trust Company Ltd. * 3,000,000 2.8 % 6 J.P. M
Slide 47: Shareholder analysis
SHAREHOLDER ANALYSIS Rank Fund m anager % Shares 1 Blommenholm Industrier AS 26.10 28,188,589 2 Baillie Gifford & Co. 8.77 9,472,664 3 Luxor Capital Group, L.P. 6.82 7,360,662 4 Folketrygdfondet 6.34 6,845,977 5 NWT Media As 3.70 4,000,000 6 Adelphi Capital LLP 2.85 3,081,946 7 Capital Research Glob
Slide 48: Key operations – Online classifieds
KEY OPERATIONS – ONLINE CLASSIFIEDS Q1 Q1 FY Finn.no (MNOK) 2015 2014 2014 Operating revenues 373 371 1,421 EBITDA 150 155 637 EBITDA margin 40 % 42 % 45 % Q1 Q1 FY Blocket.se/Bytbil.se (MSEK) 2015 2014 2014 Operating revenues 221 201 857 EBITDA 115 118 508 EBITDA margin 52 % 59 % 59 % Q1 Q1 FY Lebo
Slide 49: Key operations – Media houses
KEY OPERATIONS – MEDIA HOUSES Norway Sweden Q1 Q1 FY Q1 Q1 FY Verdens Gang (MNOK) 2015 2014 2014 Aftonbladet (MSEK) 2015 2014 2014 Operating revenues 458 492 2,009 Operating revenues 455 486 2 019 of which offline 296 320 1,292 of which offline 277 315 1 320 of which online 162 172 717 of which onli
Slide 50: Investor information
INVESTOR INFORMATION Visit Schibsted’s web site www.schibsted.com IR contacts: Jo Christian Steigedal VP, Head of IR jcs@schibsted.no +47 415 08 733 Anders Christian Rønning IRO anders.christian.ronning@schibsted.no +47 916 05 660 Schibsted ASA Apotekergaten 10, P.O. Box 490 Sentrum, NO-0105 Oslo Te