Quarterly results Q1 2011 Rolv Erik Ryssdal , CEO Trond Berger , CFO - PowerPoint PPT Presentation

Quarterly results Q1 2011 Rolv Erik Ryssdal , CEO Trond Berger , CFO Terje Seljeseth , CEO Schibsted Classified Media

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. Turn off ’CLASSIFICED’ via Q1 2011 2

Agenda  Q1 highlights  Media Houses in Q1  Online classifieds in Q1 ,  Income statement and Financials  Schibsted Classified Media  Outlook

Q1 2011 highlights  Continued profit improvement and top line growth in Q1  EBITDA NOK 447 million (418 in Q1 2010). Revenue growth 7%  Strong quarter for Online operations.  Online classifieds revenue growth of 28%. Good online growth in Media houses  Additional new ventures in Schibsted Classified Media approaching break even ,  Increased investments in new Online classifieds positions by NOK 32 million Y/Y, building platform for further growth and value creation  Scandinavian advertising markets continue to improve  Advertising revenues in Media houses increased 8%  Media Norge merger approved  Challenging circulation volume for single copy sold newspapers  Improved market positions on mobile and web Turn off ’CLASSIFICED’ via Q1 2011 4

Q1 2011 highlights Underlying Revenue Change EBITDA margin Q1 2011 y/y* Q1 11 Q1 10 Group 3 496 7 % 13 % 13 % , Media Houses Scandinavia 2 436 2 % 10 % 11 % Media Houses International 242 7 % -2 % -3 % Online Classifieds 830 28 % 31 % 30 % Turn off ’CLASSIFICED’ via *) Growth adjusted for acquisitions, divestments and currency fluctuations Q1 2011 5

Revenue split Q1 2011 Total revenue MNOK 3,496 Media Houses Online online classifieds 11 % 24 % , Media Houses Media offline Houses advertising other 28 % 7 % Media Media Houses Houses single copy subscription 18 % 13 % Turn off ’CLASSIFICED’ via Q1 2011 6

Continued EBITDA growth in Q1 600 92 (32) 500 (23) 46 (30) 447 (13) 418 (11) 400 Increased Million NOK investment in 300 Blocket roll outs , 200 100 0 EBITDA Q1 Media Norge ex Media Houses classifieds New VG SCH Sverige classifieds Established Other EBITDA Q1 2011 Investments Online 2010 Online other Finn Turn off ’CLASSIFICED’ via Q1 2011 7

Q1 2011 operations Online classifieds Media Houses Finn.no (owned by Media Norge Media Norge) Schibsted Classified , VG Media Hitta (owned by Schibsted Sverige Schibsted Sverige) International Key figures Q1 2011: Other/eliminations: Revenue: MNOK 830 MNOK 2,678 Revenue MNOK -12 EBITDA: MNOK 261 MNOK 244 EBITDA MNOK -58 Turn off ’CLASSIFICED’ via Q1 2011 8

Agenda  Q1 highlights  Media Houses in Q1  Online classifieds in Q1 ,  Income statement and Financials  Schibsted Classified Media  Outlook

Media Houses Improvement for morning newspapers, challenging volume development for tabloids +3%* 3000 30 % 2500 25 % 2000 20 % MNOK 1500 15 % 1000 10 % 500 5 % 0 0 % -500 -5 % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2010 2011 Revenue EBITDA margin *) Underlying growth, adjusted for currency effects, acquired/divested operations. Note: 2009 and 2010 figures are from Business Areas Media Houses Scandinavia/International. Q1 2011 10

Media Houses Scandinavia Improved markets and firm cost control in Media Norge  Q1 advertising revenues in Media Norge media houses Media Norge media houses increased 9% 1200 30 % 1000 25 %  Recruitment +10% 800 20 % MNOK  600 15 % Real estate +8% 400 10 % 13%  Circulation revenues increased 1% as a result of 200 5 % , 0 0 % price increases. Circulation volume declined 2% Q1 10 Q1 11  EBITDA NOK 150 million (NOK 104 million) Revenues EBITDA margin  Strong performance for online newspapers contribute to the improvement  Collaboration projects continue to enhance efficiency.  Aftenposten launched iPad edition in Q1. Will be introduced as a paid for product in Q2 Turn off ’CLASSIFICED’ via Q1 2011 11

Media Houses Scandinavia Broad improvement in Media Norge media houses Aftenposten group Bergens Tidende Stavanger Aftenblad Fædrelandsvennen 600 30 % 300 30 % 180 30 % 120 30 % 6% +9% +8% +4% 500 25 % 250 25 % 150 25 % 100 25 % 400 20 % 200 20 % 120 20 % 80 20 % 14 % , 13 % 13 % 13 % 300 15 % 150 15 % 90 15 % 60 15 % 7 % 200 10 % 100 10 % 60 10 % 40 10 % 4 % 3 % 3 % 100 5 % 50 5 % 30 5 % 20 5 % 0 0 % 0 0 % 0 0 % 0 0 % Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 Q1 11 Q1 10 Q1 11 Revenue EBITDA margin Revenue EBITDA margin Revenue EBITDA margin Revenue EBITDA margin EBITDA figures excluding associated companies. Printing activities were carved out of the Media Houses as of Q1 2011. 2010 figures are calculated for comparison purpose. Turn off ’CLASSIFICED’ via Q1 2011 12

Merger with Media Norge  Merger finalized and effective as of 12 May 2011  Improving the opportunity for cooperation across the Schibsted group  Values Media Norge at NOK 7,25 bn. including cash. Main assets: Media Houses Aftenposten, Bergens Tidende, Stavanger Aftenblad, and Fædrelandsvennen – 1. each clear leaders in their respective markets, and with potential for further operational , improvements 50.01% of Finn.no – fast growing clear market leader in Online classifieds in Norway 2.  Close to half of the value linked to online activities  Increasing Schibsted’s exposure to Finn.no from 83% to 90%  Settlement for the merger 1/3 cash and 2/3 shares in Schibsted ASA  One shareholder, representing 0.2% of the shares in Media Norge, has filed a law suit contesting that the merger is invalid  Schibsted’s legal advisors consider the claim to be without legal basis Turn off ’CLASSIFICED’ via Q1 2011 13

Media Houses Scandinavia Circulation decline for print newspapers in Sweden Schibsted Sverige media house*  Schibsted Sverige Q1 EBITDA SEK 57 million 1000 50 % (78 million) 800 40 % MSEK 600 30 %  Reduced single copy circulation volume puts 400 20 % pressure on circulation revenues 6% 200 10 %  19% online growth*. Strong growth and 0 0 % , profit development for online growth portfolio Q1 10 Q1 11 (Schibsted Tillväxtmedier) Revenues EBITDA margin  Svenska Dagbladet group Q1 EBITDA SEK 23 million (SEK 22 million) 300 60 %  Print advertising revenue increased 3% 250 50 % 200 40 %  MSEK Investor Relations advertising segment has been 150 30 % 100 20 % substantially reduced due to regulatory change 8% 50 10 %  Circulation revenues increased 2% in Q1, 0 0 % Q1 10 Q1 11 helped by price increases Revenues EBITDA margin Turn off ’CLASSIFICED’ via Q1 2011 14 *) Excluding Hitta.se, which is reported as part of the Business Area Online classified