Vend Marketplaces ASA · OSL:VEND

Vend Marketplaces ASA — Schibsted — Q4 2011 Earnings Presentation

60 slides from Vend Marketplaces ASA's earnings presentation, February 2012

  1. Slide 1: Quarterly results Q4 2011

    SCHIBSTED MEDIA GROUP Quarterly results Q4 2011 Rolv Erik Ryssdal, CEO Trond Berger, CFO

  2. Slide 2: Disclaimer

    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 c

  3. Slide 3: Agenda

    Agenda  Q4 highlights  Schibsted Norge established  Online classifieds  Media Houses  Income statement and Financials  Outlook

  4. Slide 4: Q4 2011 highlights

    Q4 2011 highlights  Schibsted Group: 4% underlying growth, stable EBITDA  Schibsted Norge to be established  Gathering all Norwegian units under one management  Online Classifieds: Robust growth and margin development  Continued high growth and improved margins for established operations  Cont

  5. Slide 5: Q4 2011 highlights

    Q4 2011 highlights Underlying Revenue Change EBITDA margin Q4 2011 y/y* Q4 11 Q4 10 Group 3,744 4% 15 % 15 % Online Classifieds 895 18 % 25 % 30 % - of which Established operations 846 18 % 44 % 41 % Media Houses Scandinavia 2,610 0% 13 % 12 % Media Houses International 280 -5 % 10 % 14 % *) Growth

  6. Slide 6: Revenue and EBITDA split Q4 2011

    Revenue and EBITDA split Q4 2011 Revenues EBITDA NOK and percent NOK and percent Online Online share 36 share 54 percent Media percent* Media Houses Houses Online online online classifieds 12 % 17 % 24 % NOK Media NOK Houses Media 3,744 offline 549 Media Houses Houses advertising offline other 9% mi

  7. Slide 7: Revenue and EBITDA split FY 2011

    Revenue and EBITDA split FY 2011 Revenues EBITDA NOK and percent NOK and percent Online Online share 35 share 55 Media percent Media percent* Houses Houses online Online online 10 % classifieds 11 % 24 % NOK Media Houses NOK Media 14,378 offline advertising Online 2,185 Media Houses Houses 26 % clas

  8. Slide 8: Agenda

    Agenda  Q4 highlights  Schibsted Norge established  Online classifieds  Media Houses  Income statement and Financials  Outlook

  9. Slide 9: Schibsted Norge: All Norwegian operations joined in one unit

    Schibsted Norge: All Norwegian operations joined in one unit Schibsted Norge AS CoB Rolv Erik Ryssdal CEO Didrik Munch Bergens Stavanger Fædrelands- Schibsted Aftenposten VG Finn.no Tidende Aftenblad vennen Forlag  Reinforce digital development Morning newspapers subscription based  Strengthen our

  10. Slide 10: Agenda

    Agenda  Q4 highlights  Schibsted Norge established  Online classifieds  Media Houses  Income statement and Financials  Outlook

  11. Slide 11: Online classifieds: Maintaining growth and margin

    Online classifieds Maintaining growth and margin  Continued underlying revenue 1 200 60 % growth for the large and profitable Scandinavian companies 1 000 44 % 50 % 41 % 41 %  Finn.no +19% 40 %  Blocket/BytBil +19% 800 34 % 30 %  Other established operations MNOK 600 30 % showing both strong gro

  12. Slide 12: Online classifieds: Revenue and EBITDA per country

    Online classifieds Revenue and EBITDA per country Norway Sweden France 400 100 % 400 100 % 400 100 % 350 350 350 300 75 % 300 75 % 300 75 % 250 58 % 250 72 % 250 47 % 200 62 % 50 % 200 50 % 200 50 % 150 MNOK MNOK MNOK 150 150 43 % 39 % 100 25 % 100 25 % 100 25 % 50 50 50 0 0% 0 0% 0 0% Q4 10 Q4 11 Q

  13. Slide 13: Balancing growth and value

    Online Classifieds Balancing growth and value 3 years 5 years Return Profitability Time Two new sites in profitable Established Investment phase as of Q1 2012 Start-up Traction Established Operations in investment phase Operations in established phase CMD 2012 13

  14. Slide 14: Established European footprint combined with growth opportunities

    Online classifieds Established European footprint combined with growth opportunities Highly profitable #1 positions BRANDS CATEGORIES FINANCIALS Q4’11 Revenues: 275 ALL VERTICALS Margin: 43% Revenues: 147 CARS + GENERAL Margin: 47% CARS + GENERAL JOBS, GENERAL, Revenues: 348 REAL ESTATE, CARS Margin

  15. Slide 15: Agenda

    Agenda  Q4 highlights  Schibsted Norge established  Online classifieds  Media Houses  Income statement and Financials  Outlook

  16. Slide 16: Media Houses Scandinavia: Stable revenue, increased margins

    Media Houses Scandinavia Stable revenue, increased margins  Stable development for 3 000 30 % subscription based 2 500 25 % newspapers  Structural decline for single 2 000 20 % copy sold newspapers, MNOK 1 500 13 % 15 % partly countered by price 12 % 12 % increases and cost 1 000 10 % reductions 

  17. Slide 17: Subscription based newspapers

    Media Houses Scandinavia Subscription based newspapers Stable revenue and margins Bergens Stavanger Svenska Aftenposten Tidende Aftenblad Fædrelandsvennen Dagbladet 600 60 % 500 50 % 400 40 % MNOK 300 30 % 200 17 % 17 % 20 % 10 % 11 % 10 % 10 % 100 14 % 15 % 10 % 3% 7% 0 0% Q4 10 Q4 11 Q4 10 Q4 11 Q

  18. Slide 18: Single Copy sold newspapers

    Media Houses Scandinavia Single Copy sold newspapers Print declining, continued growth Online Print newspapers Online Newspapers 500 50 % 120 60 % 100 50 % 400 40 % 41 % 80 35 % 40 % 300 30 % MNOK MNOK 29 % 60 25 % 30 % 200 20 % 21 % 16 % 15 % 15 % 11 % 40 20 % 100 6% 5% 10 % 20 5% 10 % 0 0% 0 0% Q4

  19. Slide 19: Progress for user paid online products

    Progress for user paid online products  Aftonbladet Plus (web premium content) most successful  Good growth for iPad products, but still limited volume  Around 150.000 paying online subscribers in Scandinavia combined  Continued experimentation with user paid products in 2012 Q4 2011 19

  20. Slide 20: Leading digital footprint in Norway and Sweden maintained

    Building new growth engines Leading digital footprint in Norway and Sweden maintained Sweden Norway  Controlling sites with Million Million Unique Unique Site visitors Site visitors 1 Aftonbladet 6,1 1 VG Nett 4,0 large traffic volumes 2 Hotmail 3 blocket.se 4 hitta.se 4,0 3,8 3,2 2 NRK.no 3 Finn.n

  21. Slide 21: New Swedish online portfolio in early stage of the growth run

    Media Houses Scandinavia New Swedish online portfolio in early stage of the growth run Schibsted Tillväxtmedier (ex Hitta.se)  Top-line growth of 29% 200 20 %  Strong development for 150 15 % MSEK Lendo, Prisjakt.se, Kundkraft 100 11 % 10 % 50 5% and other consumer services 7% 0 0% sites Q4 10 Q4

  22. Slide 22: Agenda

    Agenda  Q4 highlights  Schibsted Norge established  Online classifieds  Media Houses  Income statement and Financials  Outlook

  23. Slide 23: Income statement Schibsted Group

    Income statement Schibsted Group Full year (NOK million) Q4 2011 Q4 2010 2011 Operating revenues 3 744 3 707 14 378 Operating expenses (3 210) (3 156) (12 232) Income from associated companies 15 11 39 Gross operating profit (EBITDA) 549 562 2 185 -Impairment charge in 20 Minutes and Depreciation an

  24. Slide 24: Increased tax rate in 2011

    Increased tax rate in 2011  Tax rate Q1 to Q3 2011 around 33%  Full year 2011 tax rate is 37.5% NOK mill. Tax Tax rate Profit before tax 1 331 499 37,5% Impairment 20 Minutes -111 - -2,9% Adjusted profit before tax 1 442 499 34,6%  Tax rate affected by  Losses from start up operations where defe

  25. Slide 25: EBITDA development in Q4

    Million NOK 100 200 400 500 600 700 300 0 EBITDA Q4 2010 562 Media Norge ex (15) Finn VG 10 SCH Sverige 46 Media Houses (22) other Online 72 classifieds Established Online Increased EBITDA development in Q4 classifieds New investment in (84) Blocket roll outs Investments Other (20) Q4 2011 EBITDA Q4

  26. Slide 26: Update on cost reduction program

    Media Houses Scandinavia Update on cost reduction program  Reducing annual cost base by NOK 190-210 million, partly through staff reductions of 160-200 full time employees  Focused on print newspapers  Implementation in 2012-14, with the main effects in 2012  Restructuring charge of approx NOK 2

  27. Slide 27: Good cost control in Media Houses, increased activity in Online

    Good cost control in Media Houses, increased activity in Online Operating cost change Y/Y MNOK (52) 3 210 3 156 190 (45) (39) Operating Currency Divestments Growth Other Operating cost Q4 2010 companies companies cost Q4 2010 Growth companies include SCM, Finn.no and Schibsted Tillväxtmedier Q4 2011

  28. Slide 28: Increased earnings contribution from Online

    Increased earnings contribution from Online EBITDA Offline EBITDA Online Excluding SCM New Ventures SCM New Ventures investment 2000 2000 2000 NOK million NOK million NOK million 1500 1500 1500 1000 1000 1000 500 500 500 0 0 0 Online classifieds Media Houses Online -500 -500 -500 FY 2010 FY 2011 FY

  29. Slide 29: Online activities is a growing part of Media Houses revenues and profits

    Online activities is a growing part of Media Houses revenues and profits Online Online Online Growth share of Online share of Q4 11 (MNOK) revenues Y/Y revenues EBITDA EBITDA VG 112 29 % 23 % 32 41 % Aftonbladet 120 6% 24 % 49 46 % Media Norge 67 26 % 6% 9 6% Tillväxtmedier (ex Hitta) 162 29 % 100 %

  30. Slide 30: Strong cash flow from both Media Houses and Online Classifieds

    Strong cash flow from both Media Houses and Online Classifieds 2 000 Full year 2011 1 500 1 000 Media Houses MNOK 500 Online Classifieds established 0 Online Classifieds New ventures (500) (1 000) EBITDA CAPEX Net EBITDA- CAPEX Q4 2011 30

  31. Slide 31: Strengthened financial position

    Strengthened financial position Debt maturity profile  Capital expenditure NOK 63 million 3 000  Net Interest Bearing debt of NOK 2 500 1.64 billion  NIBD/EBITDA at 0.8x end of 2011 2 000 MNOK  Total liquidity reserve of NOK 4.0 1 500 billion 1 000  Sufficient long-term financing 500  Addition

  32. Slide 32: Possible bond issue to further diversify loan portfolio

    Possible bond issue to further diversify loan portfolio  Attractive domestic bond market currently  Schibsted are in the market to issue a new bond subsequent to Q4 11 report if market conditions are favorable  Will result in further diversified loan structure both in respect of lenders and matur

  33. Slide 33: Key financial figures

    Key financial figures Earnings per share Cash flow from operating activities/share NOK NOK 20 12,00 16,72 10,00 16 8,71 8,00 12 5,62 6,00 4,81 8 6,87 4,22 4,11 4,00 3,49 4 3,22 1,73 1,99 1,53 1,94 2,00 1,26 1,45 0,62 0,32 0 0,00 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q110 Q210 Q310 Q410 Q111 Q

  34. Slide 34: Better prepared for softer markets

    Building new growth engines Financial snapshot 2011 vs 2008 Better prepared for softer markets Cash Flow Net IB debt 2000 6000 4,0 1500 4500 3,0 1000 3000 2,0 500 1500 1,0 0 0 0,0 2008 2011 2008 2011 Cash Flow from Operating Activities Net IB debt NIBD/EBITDA (r.h.) Bank definition Q4 2011 34

  35. Slide 35: Amended classification of expenditures in SCM Spain

    Amended classification of expenditures in SCM Spain  A higher portion of development and upgrade expenditures is recognized as expenses (P&L) effect rather than assets  The effect on the Q1-Q4 2011 figures is as follows (NOK million) Q1 2011 Q2 2011 Q3 2011 Q4 2011 2011 EBITDA -8 -8 -9 -8 -33 Amor

  36. Slide 36: Agenda

    Agenda  Q4 highlights  Schibsted Norge established  Online classifieds  Media Houses  Income statement and Financials  Outlook

  37. Slide 37: Outlook

    Outlook  Online Classifieds: Strong growth and high margins  Good growth in existing portfolio – resilient to economic turmoil  Italy and Austria will contribute positively to 2012 EBITDA  Investments in new positions continuing – same level as in 2011 or somewhat higher  Media Houses: Stable p

  38. Slide 38: Welcome to London, Tuesday 28 February 2012

    Welcome to London, Tuesday 28 February 2012 Presenters: Rolv Erik Ryssdal Trond Berger Terje Seljeseth Sverre Munck Didrik Munch Christian P. Halvorsen Olivier Aizac CEO CFO CEO Schibsted EVP Strategy CEO CEO CEO Classified Media & International Media Norge Finn.no Leboncoin.fr More info and registr

  39. Slide 39: SCHIBSTED

    Oy SCHIBSTED MEDIA GROUP

  40. Slide 40: Appendices

    Appendices Spreadsheet containing detailed Q4 2011 and Historical and analytical Information can be downloaded from www.schibsted.com/ir Q4 2011 40

  41. Slide 41: Schibsted ASA basic data

    Schibsted ASA basic data Ticker Oslo Stock Exchange: SCH Reuters: SBST.OL Bloomberg: SCH NO Number of shares (14 February 2012) 108,003,615 Treasury shares (14 February 2012) 1,061,958 Number of shares outstanding 106,941,657 Free float* 73% Share price (14 February 2012) NOK 173.20 Market cap (26 J

  42. Slide 42: Historical development

    Historical development 1839 Chr. Schibsted Forlag (publishing house) 2005 Acquisition of Hitta.se founded 2005 Launch of Sesam and acquisition of Internettkatalogen 1860 Christiania Adresseblad launched in Oslo – renamed Aftenposten in 1861 2006 Schibsted International Classifieds & Search – launch

  43. Slide 43: Top 20 shareholders

    Top 20 shareholders Rank Name Holding Share 1 Blommenholm Industrier 28 188 589 26,1 % 2 Folketrygdfondet 9 124 470 8,4 % 3 JPMorgan Chase Bank, Nordea Treaty Account* 7 778 536 7,2 % 4 NWT Media AS 4 545 815 4,2 % 5 Bank Of New York Mellon* 3 951 315 3,7 % 6 State Street Bank And Trust Co.* 1 768 8

  44. Slide 44: Shareholder analysis

    Shareholder analysis Rank Fund Manager Shares % 1 Blommenholm Industrier AS 28 188 589 26,10 2 Fidelity Investments 9 852 554 9,12 3 Folketrygdfondet 9 154 405 8,48 4 Tw eedy Brow ne 4 611 891 4,27 5 NWT Media ASA 4 545 815 4,21 6 Taube Hodson Stonex Partners 4 544 329 4,21 7 Handelsbanken Asset Man

  45. Slide 45: Key financial figures

    Key financial figures 2011 2010 2009 Operating profit (EBITDA) (NOK million) 2 185 2 199 1 494 Operating margins (%): Operating margin (EBITDA) 15.2 16.0 11.7 Operating margin (EBITA) before ass. companies 11.4 11.4 7.0 Operating margin (EBITA) 11.7 11.7 6.5 EPS (NOK) 7.00 27.04 4.74 Net cash flow f

  46. Slide 46: Capital structure

    Capital structure 2011 2010 2009 Investments (NOK million): Operational investments (capex) 354 427 390 Shares and other holdings 731 1 880 196 Interest bearing debt (NOK million) 2 430 2 478 3 809 Net interest bearing debt (NOK million) 1 642 1 820 2 554 Interest bearing debt ratio (%) 14.9 15.0 25

  47. Slide 47: Online classifieds: Finn.no continued growth and high margins

    Online classifieds Continued growth and high margins  Underlying revenue growth1) of 19% to NOK 275 million, driven by both price, volumes Finn.no and new revenue models; 350 70 %  Recruitment +24% 300 60 %  Real estate -11% 250 50 % MNOK 200 40 %  Car +15% 150 39 % 43 % 30 % 100 20 %  Generali

  48. Slide 48: Online classifieds: Blocket good growth and high margins

    Online classifieds Good growth and high margins  Underlying revenue growth1) of 19% to SEK 173 million, driven by both price, volumes Blocket.se/Bytbil.com and new products 200 100 % 80 %  EBITDA of SEK 82 million (SEK 89 mill) 150 60 % MSEK 100  Investments in real estate and recruitment 58 % 40

  49. Slide 49: Strong growth in France, continued improvement in Spain

    Online classifieds Strong growth in France, continued improvement i Spain  Underlying revenue growth1) of 27% to EUR SCM International* 44.8 million, on comparable base 50 80 % France: Leboncoin.fr revenues +68% 40 60 % Spain: 30 56 % MSEK 40 % 20 46 %  Continued growth for Anuntis (generalist 20

  50. Slide 50: Media Houses Scandinavia: Supported by price hikes

    Media Houses Scandinavia Supported by price hikes Print  Circulation revenue -4% 500 50 % 400 40 %  Price increases partly compensate volume 300 30 % decline MNOK 200 15 % 11 % 20 % 100 10 %  Print advertising revenues -13% due to price pressure and volume decline 0 0% Q4 10 Q4 11  EBITDA NOK 43

  51. Slide 51: Continued improvement in Media Norge

    Media Houses Scandinavia Continued improvement in Media Norge  Q4 advertising revenues in Media Norge ex. Finn.no Media Norge media houses declined by 4% Y/Y 1200 30 % 1000 25 %  Print advertising -7% 800 20 % 13 % MNOK  Online advertising +24% 600 12 % 15 % 400 10 %  Circulation revenues increa

  52. Slide 52: Cost control and EBITDA improvement in Aftonbladet

    Media Houses Scandinavia Cost control and EBITDA improvement in Aftonbladet Print 600 30 %  Q4 EBITDA SEK 67 million (SEK 24 million) 500 25 %  Advertising revenue decreased by 3% MSEK 400 15 % 20 % 300 15 %  Circulation revenue decline 9%, partly helped by SEK 200 5% 10 % 1 cover price increase

  53. Slide 53: Market leading newspapers in Norway and Sweden

    Media Houses Scandinavia Market leading newspapers in Norway and Sweden Schibsted owns six of top ten Schibsted owns two of top seven paid newspapers in Norway newspapers in Sweden Daily readership (‘000) Penetration¹ Daily readership (‘000) Penetration² 21% 1 021 14% 830 649 16% 921 13% 406 10% 794

  54. Slide 54: Circulation development - YTD

    Circulation development - YTD Circulation Change Change Circulation Change Per Q4 2011 2010-2011 revenue 2010-2011 Media Norge w eekdays Media Norge Sunday 415 148 285 016 (8 644) (6 563) (2,0)% (2,3)% } 1 323 a) 2,8 % Verdens Gang w eekdays Verdens Gang Sunday 211 588 198 105 (21 707) (8 541) (9,3)

  55. Slide 55: Advertising – Print editions

    Advertising – Print editions Volum e 1) Change Revenues Change Per Q4 2011 2010-2011 (NOK m illion) 2010-2011 Media Norge 132 762 0,0 % 2 012 (0,5) % Verdens Gang 11 529 (4,0) % 360 (10,7) % 3) Aftonbladet 2) 18 328 (7,0) % 416 (6,3) % Svenska Dagbladet 2) 24 796 (6,3) % 515 (0,6) % 1) Column meters

  56. Slide 56: Advertising revenues Media Norge

    Media Houses Scandinavia Advertising revenues Media Norge 2008 2009 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Offline advertising revenues 648 696 519 574 481 489 393 503 471 543 428 550 524 549 420 517 Aftenposten 350 380 251 293 250 248 198 256 237 279 216 277 271 279 211 253 Berge

  57. Slide 57: Daily reach for Media Houses in Sweden – print and online

    Media Houses Scandinavia Daily reach for Media Houses in Sweden – print and online Aftonbladet 2 522 Expressen, GT, Kvällsposten 1 607 DN 1 116 GP 588 Sydsvenskan 361 0 500 1000 1500 2000 2500 3000 Number of daily readers for media house online and print platforms Source: SIFO approved calculation o

  58. Slide 58: Media Houses International: Mixed picture internationally

    Media Houses International Mixed picture internationally 30 30 % Baltics  Continued growth in advertising, but decline in 20 20 % circulation revenues 11 % MEUR 10 % 10 10 %  Firm cost control and good margins 0 0% Q4 10 Q4 11 Revenue EBITDA margin France*  Revenue +11% 20 40 %  Continued good g

  59. Slide 59: Investor information

    Investor information  Visit Schibsted’s homepages  www.schibsted.com/ir  Jo Christian Steigedal, VP Investor Relations [email protected] Tel: +47 2310 6600 Schibsted ASA Apotekergaten 10, P.O. Box 490 Sentrum, NO-0105 Oslo Tel: +47 23 10 66 00. Fax: +47 23 10 66 01. E-mail: [email protected]

  60. Slide 60: SCHIBSTED

    Oy SCHIBSTED MEDIA GROUP

Schibsted — Q4 2011 Earnings Presentation on 6ix