EMPOWERING PEOPLE IN THEIR DAILY LIVES - SEB Investment Grade Seminar, Oslo, 30 August 2018 VP Treasury Catharina Thorenfeldt and VP Investor ...
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EMPOWERING PEOPLE IN
THEIR DAILY LIVES SEB Investment Grade Seminar, Oslo, - 30 August 2018
VP Treasury Catharina Thorenfeldt and VP Investor Relations Jo Christian Steigedal
1
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.
SEB Investment Grade Seminar 2018 2
Key take-aways
• A global leader in Online classifieds
• Strong market leading positions in attractive European countries and selected emerging markets
• Targeting 15-20% revenue growth medium to long term
• Continued high margins in developed markets and reduced investment phase losses expected going forward
• Leading digital publisher with strong reach in Norway and
Sweden
• Schibsted Growth – investing in and developing great digital
consumer services
• Main driver: Lendo revenue of NOK 772 last 12 months with 43% EBITDA margin – potential to scale in
additional markets
SEB Investment Grade Seminar 2018 3
Multiple market leaderships in Online classifieds,
publishing and consumer services
Marketplaces Publishing Growth
World Class Digital Rapidly growing
Global Leader in Online classifieds
Publishing & Services portfolio of consumer services
Revenues last 12 months mNOK 8,510 Revenues last 12 months mNOK 8,219 Revenues last 12 months mNOK 1,840
EBITDA last 12 months mNOK 2,695 EBITDA last 12 months mNOK 700 EBITDA last 12 months mNOK 451
SEB Investment Grade Seminar 2018 4
AGENDA • Marketplaces
• Publishing
• Growth
• Finance
• Summary
SEB Investment Grade Seminar 2018 5
MARKETPLACES
SEB Investment Grade Seminar 2018 6
Schibsted – a global leader in Online classifieds
• NOK 8.5 bn revenues
• NOK 2.7 bn EBITDA
• 3,000+ employees
• 22 countries
• 1.2bn people market footprint
• 30m+ daily users
SEB Investment Grade Seminar 2018 7
Marketplaces
We maintain our 15-20% annual growth target
Focus on cash flow and profitability improvement
NOK billion, rolling 12 months 16-19 Focus on improved cash flow and
profitability
Strengthening verticals in
CAGR +16% 8,5 existing markets
7,1
6,4
15-20% medium to long term
3,2 growth outlook in France
2,4 2,7 2,7
1,5 1,9
Significant potential in profitable
Q2 16 Q2 17 Q2 18 FY 2022
OLX Brazil
Revenue EBITDA ex Investment phase EBITDA
Pro forma, including contribution from joint ventures and associates as if we had consolidated the companies proportionately
SEB Investment Grade Seminar 2018 8
Marketplaces
We are well positioned for further growth through
focus on attractive and defendable verticals
Revenue growth driven by verticals…. … of which real estate and cars are most important
+16%1
Other
Jobs
Display advertising +7% 26%
Generalist Real estate
37%
+19%
Verticals2
Cars
37%
Q2 16 Q2 17 Q2 18
1) Pro forma, including contribution from joint ventures and associates as if we had Split of vertical revenues Q2 2018
consolidated the companies proportionately, adjusted for currency
2) Verticals = Car, real estate, jobs
SEB Investment Grade Seminar 2018 9
Marketplaces
We have built leadership positions in attractive markets with
potential for increased value market share
FRANCE NORWAY SWEDEN SPAIN BRAZIL
Traffic Revenue Traffic Revenue Traffic Revenue Traffic Revenue Traffic Revenue
GEN.
GOODS
CARS
REAL
ESTATE
JOBS
Source: Mediametrie, Geminus, Similarweb, Comscore – competitive positions based on traffic. Spain: SCM Spain aggregated position
SEB Investment Grade Seminar 2018 10Marketplaces
Runway for growth –
low monetization for market leading sites outside Scandinavia
Large headroom in revenue / internet capita
EUR/internet capita 2017
32,8
1,8
13,5
11,7
4,6 3,4 0,3
Norway Sweden Schibsted Schibsted UK OLX Brazil Avito Russia
Finn.no Blocket.se France Spain (benchmark) (benchmark)
External benchmark: UK: Rightmove+Zoopla+Auto Trader EUR 13.50 | Russia: Avito EUR 1.80
SEB Investment Grade Seminar 2018 11We are putting the primary focus Marketplaces
on verticals and large value drivers
Deepen vertical roots Converge platforms Refine focus
• Providing valuable tools for dealers • Building tomorrow’s classifieds • Exit from non-core
and agents services geographies
• Build barriers to entry for new • Utilizing global scale on • Targeting M&A/consolidation
players selected components
• Innovating products with “big
• Strengthen the service for the sites first approach”
“demand side”
SEB Investment Grade Seminar 2018 12Marketplaces
Continued product development
Selected examples
Trust & reputation Transaction and Performance Image Recognition
shipping dashboards
REUSING TOOLS AND COMPONENTS ACROSS MARKETS WHERE POSSIBLE
SEB Investment Grade Seminar 2018 13In France we see 15-20 percent annual growth potential medium term
We have grown revenues … and plan to increase market shares in … over the next 2-4 years
with 20% annually… cars, real estate and jobs verticals…
• Strengthen product portfolio in
(million EUR, 12m rolling) (2017 Online classifieds market, size million EUR*)
verticals
285 690
• Increase penetration among car
dealers and real estate agents
236
• Optimize price structures
196 Real estate 360
• Facilitate transactions
166 158 • Leverage traffic to increase
140 market share in display
107 115 advertising
Cars 150
184 • Explore adjacent businesses
Real estate,
Jobs 180
Cars, jobs
Q2 15 Q2 16 Q2 17 Q2 18 Market Leboncoin
*) Management estimates for 2017. LBC FY 2017
SEB Investment Grade Seminar 2018 14In Spain we see solid growth potential medium term
Growth acceleration
(million EUR, 12 month rolling)
149
123
106
90
44
25 25
15
Q2 15 Q2 16 Q2 17 Q2 18
SEB Investment Grade Seminar 2018 15Marketplaces
Brazil is at an early stage of monetization with
significant potential to grow revenues with high margins
Clear classifieds leader Clear leader in cars We have grown revenue by 83% through
verticals and display ads…
Number of car dealers Million BRL (100%). Schibsted owns 50%
• 6.5 million daily active 17,643
users in Q2 +83%
• >80% of traffic is mobile 67.7
• #1 by traffic in Online 10,759
classifieds 8,523 37.1
6,832
• Top of mind brand in 5,657 5,555 17.8
9.8
general classifieds
• 15th largest online site in -0.5
Brazil OLX #2 #3 #4 #5 #6
-16.4
Q2 16 Q2 17 Q2 18
Source: Autobiz
Revenue EBITDA
SEB Investment Grade Seminar 2018 16Marketplaces
We are on track to achieve reduced Investment phase
losses of EUR 40-50 million in 2018
Total Investment phase revenue Total Investment phase EBITDA Positive development for Shpock
(EUR million including our proportionate
share of JVs)
(EUR million including our
proportionate share of JVs)
– focus on UK
+42% 1,0 • Focus on traffic and
-1,1 JVs
22,7 monetization growth in UK
-2,8 -3,7
Other
-5,4
subsidiaries • 3.3 million monthly app users
in UK
16,0 -9,3 -8,1 Shpock
• >2 million new listings per
11,3 month
-14,1 -10,7
• Introduced in-app transactions
-10,6
• Commercializing features for
-20,6 verticals – focus on cars
-22,7
Q2 16 Q2 17 Q2 18 Q2 16 Q2 17 Q2 18
SEB Investment Grade Seminar 2018 17The second hand effect benefits society, users and Schibsted
ATTRACTING
TALENT
ATTRACTING
USERS
SEB Investment Grade Seminar 2018 18Publishing
19Publishing
While digital is growing, we are managing the decline in print
Publishing operations Scandinavia
Revenues and EBITDA-margin (NOK million)
+1%*
2 500
2 000
NOK million
1 500
1 000
500 9% 10% 8%
0
Q2 16 Q2 17 Q2 18
Online revenues Offline revenues EBITDA margin
* Currency adjusted
SEB Investment Grade Seminar 2018 20Publishing
VG and Aftonbladet delivered digital growth and solid margins
VG and Aftonbladet Strong growth in digital subscriptions in VG
Revenues and EBITDA-margin (NOK million) Subscribers to VG+
1 000
154,000
800
+36%
113,000
NOK million
600
400
14% 17% 15%
200
0
Q2 16 Q2 17 Q2 18
Q2 17 Q2 18
Online revenues Offline revenues EBITDA margin
SEB Investment Grade Seminar 2018 21Publishing
In morning newspapers, we have grown digital subscriber numbers
Number of subscribers
600,000
500,000
400,000
300,000
200,000
+38%
100,000
0
Q2 17 Q2 18
Digital Bundles*
*) “Complete” + weekend only
SEB Investment Grade Seminar 2018 22SCHIBSTED GROWTH
23Schibsted
Growth
Ambitions for further portfolio expansion
We look for startups that … and offer them unique
complement our portfolio… tools for growth
Consumer Marketing-driven Synergies Funds for
marketplaces business models growth
Amazing Expertise Ecosystem
entrepreneurs
SEB Investment Grade Seminar 2018 24Schibsted
Lendo – strong growth in a fast developing
Growth
consumer finance market
Lendo
Revenues (NOK million) and EBITDA-margin • Contined strong growth in
+26% volume and revenues in
208 Sweden and Finland
165
• Slight slowdown in volume
growth in Norway
109
41%
37% • Looking into new market
33%
opportunities for Lendo
• Strategic review to be
announced during Q3 18
0 0
Q2 16 Q2 17 Q2 18
EBITDA-margin Revenue
SEB Investment Grade Seminar 2018 25FINANCE
SEB Investment Grade Seminar 2018 26Finance
We have improved our EBITDA, increased our operating cash flow,
and reduced our CAPEX
EBITDA Operating cash flow CAPEX
NOK million NOK million NOK million
895 550 215
200 -7%
+29%
694
+186%
192
Q2 17 Q2 18 Q2 17 Q2 18 Q2 17 Q2 18
SEB Investment Grade Seminar 2018 27Finance
We are targeting bolt-on acquisitions and consolidation in online
classifieds – using our strong financial base
Net interest bearing debt currently below target range M&A track record with strong results
NIBD (NOK million) and NIBD/EBITDA
Brazil
9.000 3,0 2017 Mexico 2015
Potential leverage
8.000 France
in special situations
7.000 2,5 with plan to reduce 2016 Spain 2015
2,5
2,1 to the Target range
6.000
2,0 France
5.000 2017 Spain 2017
4.000 Target range
1,5 1-2x EBITDA
3.000 • Bolt-on acquisitions and consolidation are
2.000 1,0
highly attractive in online classifieds
1,0
1.000 0,9 0,8 • Current financial leverage allows significant
0 0,5 M&A activity
Q2 17 Q3 17 Q4 17 Q1 18 Q2 18
• We will continue to be slightly under levered
NIBD/EBITDA according to our target range in the short-
Net interest bearing debt (NIBD) medium term, while pursuing M&A strategy
SEB Investment Grade Seminar 2018 28Well diversified loan portfolio
Debt maturity profile (NOK million)
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
-
2018 2019 2020 2021 2022 2023 2024 2025
Other NIB FRNs & Bonds Bank facility drawn Bank facility undrawn
SEB Investment Grade Seminar 2018 29Key take-aways
• A global leader in Online classifieds
• Strong market leading positions in attractive European countries and selected emerging markets
• Targeting 15-20% revenue growth medium to long term
• Continued high margins in developed markets and reduced investment phase losses expected going forward
• Leading digital publisher with strong reach in Norway and Sweden
• Schibsted Growth – investing in and developing great digital
consumer services
• Main driver: Lendo revenue of NOK 772 last 12 months with 43% EBITDA margin – potential to scale in
additional markets
SEB Investment Grade Seminar 2018 30SEB Investment Grade Seminar 2018 31
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