Q2 2016 CEO ROLV ERIK RYSSDAL EVP CFO TROND BERGER 19 July 2016
Q2 2016 HIGHLIGHTS ■ Continued positive development for online classifieds ■ Solid revenue growth and good margins in France and Spain ■ Sustained growth in Norway, continued good momentum in Sweden ■ Strong progress and reduced investment spend in emerging markets ■ Challenging advertising markets, tight cost control in media houses ■ Strong inflow of digital subscribers ■ Improved margin level as a result of cost savings ■ Continued ramp up of product and technology competence Q2 2016 2
■ Online Classifieds AGENDA ■ Media Houses ■ Product & Tech ■ Finance ■ Summary Q2 2016 3
BROAD REVENUE AND EBITDA GROWTH IN ONLINE CLASSIFIEDS +25%* Key developed markets 1 784 revenue growth Y/Y +16% Revenues EBITDA ex Investment phase 1 430 FRANCE 17% 1 229 Million NOK NORWAY 8% 722 627 11% SWEDEN 530 13% SPAIN External revenues, growth in local currency Q2 14 Q2 15 Q2 16 *) 18 percent adjusted for currency fluctuations Q2 2016 4
FRANCE STEADY GROWTH, STRONG MARKETING PUSH TO DRIVE RECRUITMENT MONETIZATION France ■ Continued progress in monetizing the +17% leading traffic position in the real estate 60 80% market 50 67% ■ Solid growth for cars driven by price 60% 62% Million EUR 40 58% optimization and volume 30 40% ■ Strong volume and traffic position in 20 recruitment – significant marketing push to 20% 10 prepare improved product launch in Q3/Q4 0 0% ■ Online recruitment market value approx EUR Q2 14 Q2 15 Q2 16 Revenues EBITDA margin 130-140 million Note: Market sizes are Schibsted estimates Q2 2016 5
SPAIN GROWTH CURBED BY POLITICAL UNCERTAINTY Spain ■ 13% revenue growth in Q2 Y/Y +13% ■ Revenue growth across all verticals, 30 90% but reduced momentum in jobs due to political uncertainty 20 60% Million EUR ■ Good development for display ads 27% 26% 10 30% ■ Continued marketing push in Q2 16% ■ Increased focus on product 0 0% development going forward Q2 14 Q2 15 Q2 16 Revenues EBITDA margin Q2 2016 6
NORWAY REVENUE GROWTH IN ALL CLASSIFIEDS VERTICALS Norway ■ Solid revenue growth in cars and jobs 500 100% due to volume and price effect 8% ■ Soft volume development in real estate 400 80% due to few objects for sale in the Million NOK 300 60% 51% market 47% 47% ■ Good contribution to growth from 200 40% personal finance ■ Continued decline in display 100 20% advertising. New targeted products 0 0% expected to mitigate trend going Q2 14 Q2 15 Q2 16 forward Revenues EBITDA margin Q2 2016 7
SWEDEN SOLID GROWTH IN PROFESSIONAL REVENUES IN CARS AND JOBS Sweden ■ Good revenue growth from auto and jobs 11% 300 90% verticals – driven by volume and price 250 ■ Continued good growth for display advertising 58% 57% 200 60% ■ Low marketing spend in the quarter supports 50% Million SEK EBITDA margin 150 ■ Hemnet acquisition process terminated 100 30% 50 0 0% Q2 14 Q2 15 Q2 16 Revenues EBITDA margin Q2 2016 8
DEVELOPED PHASE - OTHER STEADY, HIGH GROWTH IN OTHER DEVELOPED OPERATIONS Other developed operations ■ Continued high growth rate in Revenues (EUR million) +37% Other developed operations 21 ■ Good growth momentum in 15 Italy, Austria and Ireland 12 ■ Double-digit – and improving – margins in Austria and Ireland ■ Continued high marketing investments in Italy Q2 14 Q2 15 Q2 16 Pro forma figures, including established operations in Italy, Ireland, Hungary and Colombia. Proportionate share of Joint Ventures and Associates in Austria and Malaysia. Q2 2016 9
STRONG KPI GROWTH IN BRAZIL – MONETIZATION RAMPING UP Visits per month OLX Brazil ■ Clear traffic leadership in online 250 000 000 classifieds; 44% growth in visits Y/Y 200 000 000 ■ Revenues ramping up driven by 150 000 000 display advertising, listing fees in cars and real estate and premium features 100 000 000 ■ Reduced losses as a result of revenue 50 000 000 growth and lower marketing spend 0 Mobile Desktop Q2 2016 10
CONTINUED TARGETED INVESTMENT IN THE NATIVE APP SHPOCK Capturing traffic market share in UK ■ Continued investments in native Average Daily App Users, (1000) market place app Shpock 600 Gumtree ■ Main investments in UK, Germany 500 and Italy 400 ■ Building new, attractive young 300 user groups 200 ■ Activating new reservoirs of items for sale; fashion, baby & child, 100 home & garden, leisure & sports, 0 etc. Apr-2015 May-2015 Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015 Nov-2015 Dec-2015 Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Source: Comscore Mobile Metrix; mobile app users only Q2 2016 11
MEDIA HOUSES 12
VG AND AFTONBLADET GOOD GROWTH IN ONLINE ADVERTISING AND DIGITAL SUBSCRIPTIONS VG+Aftonbladet ■ Good growth in digital subscribers. Aftonbladet 1000 60% Plus has 280,000 and VG+ 50% 85,000 subscribers 800 Million NOK 40% ■ Continued solid revenue 600 growth for web-tv. 30% 400 ■ 15% growth in digital 20% revenues in Sweden (local 200 10% 14% 14% 14% currency); 7% growth in 0 0% Norway. New, targeted ad Q2 14 Q2 15 Q2 16 products well received Offline revenues Online revenues EBITDA margin *) Readers; source TNS and Orvesto Q2 2016 13
SUBSCRIPTION NEWSPAPERS NORWAY STRONG GROWTH FOR DIGITAL SUBSCRIPTIONS Number of digital subscribers Total number of subscribers 80 000 360 000 70 000 2016 355 000 60 000 50 000 350 000 +4% Y/Y 40 000 345 000 30 000 20 000 2015 340 000 10 000 0 335 000 1 6 111621263136414651 3 8 131823 1 3 5 7 9 11 13 15 17 19 21 23 25 2015 2016 Week number Week number Q2 2016 14
SUBSCRIPTION NEWSPAPERS NORWAY SOLID GROWTH IN CIRCULATION REVENUES, SIGNIFICANT DECLINE IN ADVERTISING Subscription newspapers ■ 11 percent growth in circulation revenues 1000 50% ■ Advertising still soft 800 40% ■ Print advertising revenues -25% Million NOK 600 30% ■ Online advertising revenues -22% 400 20% ■ Operating expenses reduced by 6%; NOK 44 12% 9% 8% 200 10% million 0 0% ■ New, targeted digital ad products to be launched Q2 14 Q2 15 Q2 16 Online revenues Offline revenues EBITDA-margin Q2 2016 15
BROAD-BASED GROWTH AND MARGIN IMPROVEMENT FOR SCHIBSTED GROWTH Schibsted Growth Sweden ■ 15 percent revenue growth 300 30% ■ Personal finance, particularly Lendo, 250 25% key driver for revenue growth and 24% 200 20% Million SEK EBITDA 20% 19% 150 15% ■ Continued strong growth for price 100 10% comparison 50 5% 0 0% Q2 14 Q2 15 Q2 16 Hitta.se Schibsted Growth Other EBITDA margin Q2 2016 16
PRODUCT & TECHNOLOGY Q2 2016
CONTINUING TO BUILD PRODUCT AND TECH COMPETENCE Marketplace platform Media platform Advertising platform Providing top class products, improve innovation and reduce time to market Q2 2016 18
FINANCE Q2 2016 19
Q2 INCOME STATEMENT SCHIBSTED GROUP (NOK million) Q2 2016 Q2 2015 Y/Y comparison negatively Operating revenues 4,114 3,803 affected by consolidation of Operating expenses (3,477) (3,161) Shpock as of Sept 2015. Gross operating profit (EBITDA) ex Investment phase 831 753 Declining loss Y/Y as a result of lower Online classifieds Gross operating profit (EBITDA) 637 642 investments in JVs and ACs Depreciation and amortization (132) (119) Share of profit (loss) of JVs and associates (40) (107) Mainly driven by close-down of Impairment loss (39) (3) printing plant in Stavanger Other income and expenses (69) 97 Primarily restructuring cost Operating profit (loss) 357 510 related to headcount reduction in Net financial items 2 (70) Media Houses Norway Profit (loss) before taxes 359 440 Affected by positive currency Taxes (166) (172) effects of NOK 23 million Profit (loss) 193 268 EPS (NOK) 0.69 1.11 EPS - adjusted (NOK) 1.04 0.62 Q2 2016 20
EBITDA DEVELOPMENT IN Q2 EXCLUDING INVESTMENT PHASE 20 (61) 24 Million NOK 11 (7) 47 831 44 753 EBITDA OLC France OLC Norway OLC Spain OLC Other Media Houses Media Houses Other/HQ EBITDA Q2 2015 and Sweden Norway Sweden incl. product Q2 2016 and tech OLC = Online classifieds Q2 2016 21
EBITDA IMPROVEMENT IN ALL KEY OPERATING SEGMENTS EBITDA ex Investment phase 800 722 700 627 600 530 500 NOK million 400 300 176 200 143 130 119 110 89 100 0 Q2 14 Q2 15 Q2 16 Q2 14 Q2 15 Q2 16 Q2 14 Q2 15 Q2 16 Online classifieds Media Houses Norway Media Houses Sweden Q2 2016 22
CONTINUED ORGANIC INVESTMENTS – STEADY GROWTH IN USER METRICS Investment phase spend ■ Main drivers for investment EUR million 42 spend are Mexico and Shpock. Included in EBITDA Significant potential for value 16 JVs and Associates creation 24 23 ■ Reduced investments in Brazil, 12 Chile and early stage 26 20 European markets 12 3 Q2 14 Q2 15 Q2 16 Total, including proportionate share of JVs and associates Q2 2016 23
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