Vend Marketplaces ASA · OSL:VEND
Vend Marketplaces ASA — Schibsted — Investor Day (2010)
25 slides from Vend Marketplaces ASA's investor day presentation, 2010
Slide 1: Financials and financial targets
Financials Tittel and financial targets Undertittel TROND BERGER CFO
Slide 2: Agenda
AGENDA Net interest bearing debt, balance sheet and cash flow Framework for investments Financial targets Summary 2 CMD 2010 - Trond Berger - Financials and financial targets
Slide 3: Financial gearing significantly reduced
Financial gearing significantly reduced • Divestment of assets 8 000 4,0 • Totalling approx NOK 2 billion 7 000 3,5 • Rights issue 6 000 3,0 5 000 2,5 • NOK 1.3 billion NIBD/EBITA Million NOK 4 000 2,0 • Profitability programme 3 000 1,5 • Total effect achieved NOK 1.5 billion • Target NOK 1.7 billi
Slide 4: Refinancing of long term debt in place
Refinancing of long term debt in place - flexibility to pursue strategic opportunities • New loan agreements signed with effect Debt maturity profile from 31 August 2010 3 000 • Long term syndicate with drawing rights of 2 500 totally EUR 500 million • of which EUR 175 million 3 year maturity NOK mi
Slide 5: Balance sheet details
Balance sheet details 30.6 30.6 31.12 (NOK million) 2010 2009 2009 Non-current assets 10 201 12 082 10 852 Current assets 3 891 4 654 4 368 Total assets 14 092 16 738 15 220 Equity 5 598 4 165 5 274 Non-current liabilities 4 038 6 695 5 635 Current liabilities 4 456 5 878 4 311 Total equity and liab
Slide 6: Balance sheet details – Non current assets
Balance sheet details – Non current assets 30.6 30.6 31.12 (NOK million) 2010 2009 2009 Intangible assets 7 041 7 940 7 222 Investment property and property, plant and 2 131 2 819 2 522 equipment Investment in associated companies 432 433 411 Other non-current assets 597 890 697 Non-current assets 1
Slide 7: Cash flow and investments
Cash flow and investments • Normal maintenance CAPEX NOK 400-500 million • Last twelve months CAPEX NOK 308 million 2500 25 % 1.1 - 30.6 1.1 - 30.6 1.1 - 31.12 (NOK million) 2010 2009 2009 2000 20 % Profit (loss) before taxes (continuing operations) 1 214 (139) 279 Profit (loss) before taxes discont
Slide 8: Unique exposure to online revenue sources maintained
Unique exposure to online revenue sources maintained Split online/offline revenues Good growth from online activities rolling 12 months even during financial crisis 14 30 % 12 NOK billion 10 25 % 8 6 20 % 4 2 29% 15 % 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 10 % Online Offline 5% Online Split online/offline
Slide 9: Agenda
AGENDA Net interest bearing debt, balance sheet and cash flow Framework for investments Financial targets Summary 9 CMD 2010 - Trond Berger - Financials and financial targets
Slide 10: Investment criteria: return on investment determined by risk
Investment criteria Return on investment determined by risk • Schibsted growth ambitions along two axes • Organic initiatives – focused on Online classifieds - Blocket roll outs • Small and medium sized acquisitions focused on Online classifieds – bolt on acquisitions – and other online related asse
Slide 11: Assets evaluated at least on a quarterly basis
Assets evaluated at least on a quarterly basis basis Market position (traffic volume and quality, content, monetization) Evaluation Evaluation Evaluation moment moment moment Competitor 1 Competitor 2 SCM Months site 0 3 6 9 12 15 18 21 24 27 30 33 36 Launch: Set Key focus: Key focus: Key focus: tar
Slide 12: Basic areas of evaluation
Allocation of capital Basic areas of evaluation Market Attractiveness Competition Traffic Ad Volume Marketing Costs Organization Outlook 12 CMD 2010 - Trond Berger - Financials and financial targets
Slide 13: Agenda
AGENDA Net interest bearing debt, balance sheet and cash flow Framework for investments Financial targets Summary 13 2010 - Trond Berger - Financials and financial targets CMD
Slide 14: New financial targets for Schibsted – Background
Financial targets New financial targets for Schibsted – Background Targets for the coming 3-5 years period Schibsted should develop towards and meet the targets within this time frame Targets to be achieved given a mid cycle environment 14 CMD 2010 - Trond Berger - Financials and financial targets
Slide 15: New financial targets for Schibsted – Summary
Financial targets New financial targets for Schibsted – Summary Revenue Financial EBITA margin Dividend policy Equity ratio growth gearing • Schibsted • 5% • NIBD/EBITDA • 25-40% of • 35-50% Group: annual growth last 12 cash flow • Minimum 25% 10-12% months: 1x-2x • Including • In special situations
Slide 16: Historical development for EBITA margin
Financial targets Historical development for EBITA margin 16000 16,0 % 14000 14,0 % Target: 10-12% 12000 12,0 % 10000 10,0 % 8000 8,0 % Average 7.4% 6000 6,0 % 4000 4,0 % 2000 2,0 % 0 0,0 % 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 LTM Revenue EBITA margin Average EBITA margin 16 C
Slide 17: EBITA margin for Schibsted Group: 12%
Financial targets EBITA margin for Schibsted Group: 12% • Growth for high margin Online classifieds operations • However continued margin dilution from growth initiatives in Established operations and operations in Investment phase • Profitability programme strengthens margin potential in Media Hous
Slide 18: Revenue growth: 5% annually
Financial targets Revenue growth: 5% annually growth • Online classifieds: Continued strong growth, in line with what has been observed during the last few years • Volume growth and increased contribution from broadening revenue base from exciting products as well as from new products and services i
Slide 19: Financial gearing: NIBD/EBITDA 1x-2x
Financial targets Financial gearing: NIBD/EBITDA 1x-2x • Guideline for financial target: NIBD/EBITDA ratio 8 000 4,0 of 1-2x 7 000 Trader 3,5 acquisition • In a normal situation closer 6 000 3,0 Financial to 2x than 1x crisis 5 000 2,5 • May go up to 3x in special NIBD/EBITA Million NOK 4 000 2,0 si
Slide 20: Dividend policy: 25-40% of cash flow
Financial targets Dividend policy: 25-40% of cash flow • “Schibsted will emphasize a fixed 5,00 50 % dividend ratio that over time will be in 4,50 45 % the range 25-40 % per cent of the 4,00 40 % Group’s cash flow per share. 3,50 35 % 3,00 30 % • In years of weaker cyclical 2,50 25 % environment Sch
Slide 21: Share buy backs
Share buy backs • Schibsted holds approx 4.7 million treasury shares • 4.3% of total number of shares • 2010 Annual general meeting extended an authorization to buy back in total 10% of total number of shares • Buybacks may be considered to adjust the capital structure of the group 21 CMD 2010 - Tro
Slide 22: Key elements in Articles of Association
Key elements in Articles of Association • Protect editorial freedom • Negative control with ¼ of shares • No shareholder can own or vote for more than 30% of shares • Shareholders owning 25% or more has the right to appoint one member of the Board of directors 22 CMD 2010 - Trond Berger - Financials
Slide 23: The Tinius Trust
The Tinius Trust • The Tinius Trust controls 27.1% of the shares through a “golden share” in Blommenholm Industrier AS • Managed by a board of trustees • Chairman Ole Jacob Sunde (also chairman of Schibsted) • John A. Rein (lawyer) • Per Egil Hegge (former editor in Aftenposten) • Each have appointe
Slide 24: Summary
Summary • New financial targets show Schibsted’s ambitions in terms of growth, profitability and balance sheet structure • Solid financial basis • Good underlying cash flow • Repayment of debt and getting back to normal dividend level prioritized 24 CMD 2010 - Trond Berger - Financials and financial
Slide 25: Shaping the media of tomorrow. Today.
Shaping Tittel the media of tomorrow. Undertittel Today. 25