A Nordic digital front-runner well positioned for continued growth Morgan Stanley European TMT Conference Barcelona, 13 November 2019
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 of information purposes, and does not constitute an offer to sell or the solicitation this presentation shall under any circumstance create any implication that the of an offer to buy any financial instruments. information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed. Reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions contained herein are fair and The Company does not intend, and does not assume any obligation, to update reasonable, however no representation or warranty, express or implied, is or correct any information included in this presentation. given by or on behalf of the Company, any of its directors, or any other person as to the accuracy or completeness of the information or opinions contained in Alternative performance measures (APM) used in this presentation are this document and no liability is accepted for any such information or opinions. described and presented in the section Definitions and reconciliations in the quarterly report. This presentation includes and is based on, among other things, forward- looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the Company or assumptions based on information available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness of such information and statements. Several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation. 2
Key take-aways Historical track record of incubating growth businesses Unrivalled Nordic Marketplaces leadership positions through Finn, Blocket and Tori Strong digital media brands with strong subscription base High potential in fast developing financial services market through Lendo et al. Proven financial performance and strong balance sheet 3
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 4
…creating value through bold investments and long-term strategies Market cap, NOK billion 83.5 23.5 65.6 65.1 53.8 51.2 43.3 43.1 60.0 25.4 18.6 16.3 16.1 15.4 14.1 5.7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Nov-2019 Adevinta spun-off part* Schibsted *) 35% of Adevinta which was distributed to Schibsted's shareholders in April 2019 5
A Nordic digital front-runner fueled by cross divisional synergies Integration Traffic 59% ownership Nordic News Media Next Marketplaces 466m 123m 193m Monthly visits Monthly visits Monthly visits Supportive long-term owner with focus on Blink ads Targeted ads Distribution value creation Source: Company data, December 2018; excluding app related traffic 6
Targeted investment opportunities combined with capital discipline Recent examples Organically build new Svosj – domestic distribution subscription business Venture activities Growth investments: Capcito, InzpireMe, Habity Jobbsafari (Sweden), Fædrelandsvennen (divestment) M&A International expansion Lendo Denmark, Austria and Poland Adjustment of capital 2% share buyback 7
Tenured and solid management supported by excellent divisional teams Ragnar Kårhus CFO Kristin Skogen Lund CEO Mette Krogsrud Chief People & Corporate Affairs Christian Printzell Halvorsen Siv Juvik Tveitnes Raoul Grünthal Sven Størmer Thaulow EVP Next EVP News Media EVP Nordic Marketplaces (Growth & Financial Services) Chief Data & Technology Officer 8
Steady growth in Q3 for Schibsted Group Schibsted Group Schibsted ex Adevinta Adevinta Revenues (NOK million) and EBITDA Revenues (NOK million) and EBITDA Revenues (NOK million) and EBITDA +6% 4.600 4.358 4.161 +1% 3.032 3.013 3.008 +15%* 1.624 1.381 1.171 1.045 865 783 503 542 526 511 354 257 Q3 17 Q3 18 Q3 19 Q3 17 Q3 18 Q3 19 Q3 17 Q3 18 Q3 19 Revenue EBITDA Revenue EBITDA *) Growth in EUR 9
Continued good revenue development for key strategic areas News Media Lendo Improved Marketplaces digital revenue revenue trend growth subscription growth in Growth revenue* +9% +3% +11% +30% Currency adjusted growth rates; *) Revenue from pure digital subscriptions 10
Strong financial position and capital discipline Low level of Ongoing 1% share net interest- ambition for buyback in Q3 bearing debt – to be M&A and Targeting growth continued up NIBD/EBITDA* investments to 2% in Q4 1-3x *) NIBD = Net interest-bearing debt (figures for Schibsted ex. Adevinta) 11
Nordic Marketplaces
9% revenue growth driven by strong development in key verticals Solid revenue growth in all three markets Verticals increasingly important revenue driver Share of total revenue, Y/Y revenue growth rate in brackets Revenue split (NOK million) and EBITDA margin Other (+19%)* +9% 769 +1% 707 683 Other +6% Sweden (+7%) Display advertising +1% 31% Generalist Verticals 66% 50% +12% EBITDA 49% 49% (49%) Norway (+11%) margin (EBITDA margin excl. IFRS 16) Q3 17 Q3 18 Q3 19 Revenue growth adjusted for currency fluctuations. Verticals = Cars, real estate, jobs The effect of IFRS 16 on EBITDA in Nordic Marketplaces was NOK 13 million in Q3 2019. *) Primarily Finland 13 Sweden revenue growth in local currency, adjusted for termination of license revenue from Adevinta and "Mäklarprodukt transferred to News Media
Reinforced revenue growth driven by verticals and display advertising Norway Marketplaces Revenues (NOK million) and EBITDA margin • Unrivalled market leader in all verticals • Diversified revenue base with low dependency 600 1 +11% on advertising 505 456 • 98% brand recognition* and 6 million unique 409 400 visitors per week** • Continued good traffic growth, +10% Y/Y in Q3 53% 48% 47% (51%) 200 0 0 Q3 17 Q3 18 Q3 19 Revenues EBITDA margin (EBITDA margin excl. IFRS 16) The effect of IFRS 16 on EBITDA in Marketplaces Norway was NOK 9 million in Q3 2019 *) Brand Tracker FINN, aided 14 **) FINN data warehouse
Strong performance within motor vertical drives revenue growth recovery Sweden Marketplaces Revenues (NOK million) and EBITDA margin • Strong #1 in generalist goods and motor 300 1 • Revenue growth driven by verticals +7% 1 256 • Turnaround of Blocket on track, solid revenue 240 230 growth in professional cars driven by new pricing 200 model 60% 49% • EBITDA decline as a result of increased 56% (48%) investments in growth initiatives 100 (48%) 0 0 Q3 17 Q3 18 Q3 19 Revenues EBITDA margin (EBITDA margin excl. IFRS 16) 1) Revenue growth in local currency, adjusted for termination of license revenue from Adevinta and "Mäklarprodukt ” transferred to News Media 15 The effect of IFRS 16 on EBITDA in Marketplaces Sweden was NOK 3 million in Q3 2019
Solid platform in Finland with further significant ramp-up potential Tori (Finland) Established in 2009 #1 position in EUR 630m general goods GMV (the value of goods sold through Tori in 2018) and traffic 4.1 1.2m Monthly visits per capita* Unique visitors per week * *) Statistics Finland 16
Project example – focus on transactional business model and value chain for the car vertical A COMPLETE JOURNEY (48%) Condition report, Safe Digital Maintenance, contract with ad- payment and registration insurance, car on services financing sharing options 17
Blink (targeted ads) – exemplifying Schibsted’s digital front - 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 ✓ ✓ ✓ ✓ Property seller retention, TRAFFIC AND DATA ~10 times Intentional data from Finn promoting tailored properties on VG 18
News Media
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