Q2 2020 Results 17 July 2020 Kristin Skogen Lund, CEO Ragnar Kårhus, CFO Christian Printzell Halvorsen, EVP Nordic Marketplaces and CEO of FINN.no
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 care has been taken to ensure that the information and facts stated herein are accurate and that the opinions contained herein are fair and reasonable, however no representation or warranty, express or implied, is 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 this document and no liability is accepted for any such information or opinions. 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. There may have been changes in matters which affect the Company subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the 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. The Company does not intend, and does not assume any obligation, to update or correct any information included in this presentation. Alternative performance measures (APM) used in this presentation are described and presented in the section Definitions and reconciliations in the quarterly report. 2
Highlights Q2 2020 Safeguarding our employees and deliver fully functional services Solid financial results in an extraordinary quarter Acquisition of online marketplace Oikotie in Finland announced on 16 July 2020 We empower circular and sustainable consumption 3
Schibsted excl. Adevinta Focus on cost savings while KPIs and revenues have improved throughout Q2 Nordic Financial Schibsted News Media Marketplaces Services Growth Listing volumes have Good trend for Subscription Underlying revenue decline in Good revenue growth driven improved throughout the revenue continues Lendo in all markets except by Distribution and Prisjakt quarter, accelerated Denmark due to COVID-19 traffic growth Advertising down 23% while EBITDA improvement QoQ trends have improved Marketing spend reduced due to higher revenues and Temporary cost savings cost savings leading to EBITDA margin EBITDA margin 8% due of 52% in Finn and to cost savings 42% in Blocket 4
Strong EBITDA, increasing QoQ Schibsted Group Schibsted excl. Adevinta Adevinta Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) Revenues, EBITDA (NOKm) -3% 4,798 4,645 4,602 -11%* 3,216 3,191 3,073 -16%* 1,650 1,591 1,438 1,060 1,008** 919 599** 557 498 503 409** 421 Q2 2018 Q2 2019 Q2 2020 Q2 2018 Q2 2019 Q2 2020 Q2 2018 Q2 2019 Q2 2020 * Schibsted excl. Adevinta revenue growth on a foreign exchange neutral basis; Adevinta revenue growth in EUR on a proportionate basis including JVs, for more details: adevinta.com/ir/ 5 ** EBITDA including IFRS 16 effect estimate
The acquisition of Oikotie will strengthen our position in Jobs and Real estate in Finland Two strong brands Strategic rationale Structure Financing Oikotie: Multi-vertical Highly complementary Acquisition of 100% Acquisition price of marketplace with leading marketplaces: Using traffic ownership of Oikotie by EUR 185 million position in Jobs and strong position from Generalist to Schibsted market share in Real estate strengthen position in Financed through current verticals Closing: 16 July 2020 financing/cash Tori: Horizontal marketplace with leading position as Further grow verticals driven The two brands will operate NIBD/EBITDA expected to Generalist and in traffic by improved innovation and side by side increase to around 2.5x product development in Q3 due to transaction One combined organization (within target range) supported by Schibsted’s Strengthened position for further growth potential broad capabilities and (organically and structural) experience in marketplaces 6
We empower circular and sustainable consumption 7 Numbers based on twelve digital marketplaces operated by Schibsted and Adevinta, for more details: schibsted.com/secondhandeffect
Nordic Marketplaces
Revenue decline driven by Jobs, Travel and advertising, Motor rather resilient; sustained good EBITDA margin Nordic Marketplaces Revenue split Revenues (NOKm), EBITDA margin (%) Revenue split (NOKm), Revenue growth YoY (%) -11%* -11%* 813 813 771 771 753 753 813 771 753 69 69 70 70 Other (+15%*) 79 79 125 125 46%** 46% 45% 123 123 Advertising (-21%*) 106 106 619 619 579 579 568 568 Classifieds (-12%*) Q2 2018 Q2 2019 Q2 2020 Q2 2018 Q2 2019 Q2 2020 Revenues EBITDA margin 9 * Foreign exchange neutral basis ** EBITDA including IFRS 16 effect estimate
Jobs, Travel and advertising significantly affected, Motor and Real estate revenues up YoY in June; EBITDA margin up YoY Marketplaces Norway Revenues (NOKm), EBITDA margin (%) Highlights Q2 2020 • Classifieds and advertising revenues decline YoY -13% due to COVID-19, improved trend during the 540 quarter 503 469 • Motor and Real estate revenues recovering, 52% 50% 48%* growing YoY in June while Jobs and Travel still negative • Visits and volumes with good growth, both reaching 18% YoY in June • Cost measures and temporary savings leading to EBITDA margin of 52% Q2 2018 Q2 2019 Q2 2020 Revenues EBITDA margin 10 * EBITDA including IFRS 16 effect estimate
Real estate and Motor more resilient while Jobs lagging due to macro environment; accelerated traffic growth Marketplaces Norway New approved ads in main verticals, monthly growth YoY Monthly visits growing 18% in June YoY (million) Jobs Real estate Motor +17% +18% 140 11% +16% +2% 4% 120 3% 100 -5% -8% 80 -13% -10% -17% -17% 60 40 -31% 20 -38% -45% 0 Mar Apr May Jun Mar Apr May Jun Mar Apr May Jun Mar Apr May Jun 2018 2019 2020 11
Motor growing YoY in Q2; EBITDA margin stable QoQ Marketplaces Sweden Revenues (NOKm), EBITDA margin (%) Highlights Q2 2020 • Motor revenues growing 11%* despite COVID-19 -6%* relief packages for professional car dealers in April 261 • Jobs decline driven by volumes while decline in 244 245 Generalist due to free edits and extra images to 53%** improve product offering 47% 42% • Soft decline in classifieds by 2%*, advertising down 23%* driven by COVID-19 • KPIs recovering throughout Q2 both looking at listings and traffic • Temporary measures have dampened cost increase compared to previous quarters Q2 2018 Q2 2019 Q2 2020 Revenues EBITDA margin 12 * Foreign exchange neutral basis ** EBITDA including IFRS 16 effect estimate
Motor listings turning to growth in June; May with highest traffic level since 2013 Marketplaces Sweden New approved ads in Motor and Jobs vertical, monthly growth YoY Monthly visits growing 24% in June YoY (million) Motor Jobs +13% +24% 5% 120 +5% -5% 100 -7% 80 -9% -14% 60 -25% -26% 40 20 0 -50% Mar Apr May Jun -50% Mar Apr May Jun Mar Apr May Jun 2018 2019 2020 13
Strong household brands and high traffic, well positioned for further growth Unaided brand awareness Yearly visits per internet Yearly revenue per internet capita capita Finn Finn Finn 96% 236 392 Blocket Blocket Blocket 72% 109 94 Tori Tori Tori 82% 67 20 Oikotie Oikotie Oikotie 81% 22 55 14 Source: Company data, based on revenue 2019, The World Bank
Both Tori and Oikotie have big potential for further vertical penetration leading to higher profitability in the mid-term Tori Oikotie Revenue split (%) and total revenues (EURm) FY 2019 Revenue split (%) and total revenues (EURm) FY 2019* Other Other Classifieds EUR 10.2m EUR 27.6m Advertising Advertising Classifieds EBITDA 2019: EUR 0.8m EBITDA 2019*: EUR 9.4m EBITDA margin: 8% EBITDA margin*: 34% 15 * Pro-forma figures
We have strengthened our leadership positions in the Nordics Norway Sweden Finland Generalist #1 #1 #1 Motor #1 #1 #2 Jobs #1 #1 #1 Real estate #2 #1 #2* 16 Source: Internal analysis based on traffic, listings, revenues * Real estate for sale for professionals discontinued, focusing on rentals in Sweden
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