schibsted 2012
TRANSCRIPT
London 28 February 2012
Agenda
Time Subject Speaker
Start End
12:00 - 12:30 Light lunch
12:30 - 12:40 Opening remarks Ole Jacob Sunde, Chairman of the Board
12:40 - 13:10 Shaping the media of tomorrow. Today. Strategic Direction Rolv Erik Ryssdal, CEO
13:10 - 13:20 Q&A
13:20 - 13:50 Schibsted Classified Media - Creating Winners Terje Seljeseth, CEO Schibsted Classified Media
13:50 - 14:10 Finn.no - Further growth for an Established market leader Christian Printzell Halvorsen, CEO Finn.no
14:10 - 14:30 Leboncoin.fr - Number 1 in French Online Classifieds Olivier Aizac, CEO Leboncoin.fr
14:30 - 14:45 Q&A
14:45 - 15:15 Break
15:15 - 15:45 Media Houses Scandinavia Didrik Munch, CEO Schibsted Norge
15:45 - 16:00 Q&A
15:45 - 16:10 Leveraging our digital assets to create additional value Sverre Munck, EVP Strategy & International
16:00 - 16:05 Q&A
16:05 - 16:30 Finance Trond Berger, CFO
16:30 - 17:00 Q&A + Wrap up Rolv Erik Ryssdal, CEO
18:30 - 21:30 Dinner at the Andaz Hotel
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Rolv Erik Ryssdal, CEO
Rolv Erik Ryssdal became CEO of Schibsted on 1 June 2009. He joined the Schibsted Group in 1991 and has held
several management positions including CEO of Aftonbladet (1999-2005), CEO of VG (2005-2008) and CEO of
Schibsted Classified Media, the holding company for our international online classifieds operations (2008-2009).
Rolv Erik Ryssdal holds an MA in Business and Economics from the BI Norwegian School of Management and an
MA in Business and Administration from INSEAD, France.
Trond Berger, CFO
Trond Berger was appointed Executive Vice President of Schibsted ASA in 1999 and is in charge of the following
business areas: Finance, Treasury, Investor Relations, Mergers and Acquisitions and IT. Previous positions
include: Investment Director with Stormbull (1998), Executive Vice President (CFO) of Nycomed ASA and
Executive Vice President, Strategy and Business Development at Nycomed Amersham (1997-98), and partner at
Arthur Andersen (1981-92). Berger is Board Chair of Schibsted Trykk AS and Schibsted Eiendom. He is also a
board member of several Schibsted subsidiaries. Berger is a State-Authorized Public Accountant (1984), holds an
MA in Economics from the BI Norwegian School of Management and is a graduate of the Norwegian Armed
Forces’ Officer Candidate School (1977).
Sverre Munck, Executive Vice President Strategy & International
Sverre Munck joined Schibsted as Executive Vice President in 1994. In 2006 he became responsible for
International Operations, and since 2009 he has been responsible for the business areas International Editorial and
Classifieds Spain. He joined Schibsted as Chief Financial Officer (CFO) in 1994 and became Executive Vice
President, Multimedia in 1998. In January 2002 he became CEO of 20 Min Holding AG and since October 2009 he
has also held the position of CEO at Infojobs.net. Previous positions include: Director of Loki AS from 1987-94, a
consultant with McKinsey & Co from 1984-1987, and Senior Consultant at the Norwegian Ministry of Finance’s
planning department in 1984. He is Board Chair of 20 Minutes France SAS, 20 Minuten AG (Switzerland),
Multiprensa Holding SL and Infojobs SA and Vice Chair of 20 Minutes France SAS. Munck holds a PhD in
Economics from Stanford University (1983, NAVF scholarship), an MA from Stanford University (1978) and a BA
from Yale University (1976).
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Terje Seljeseth, CEO Schibsted Classified Media
In October 2009, Terje Seljeseth took up the position as CEO of Schibsted Classified Media (SCM), the holding
company for Schibsted’s international online classifieds operations. At the same time, he became a member of
Schibsted’s Group Management Team. Seljeseth was hired as IT Director of Aftenposten in 1998 and was
assigned the task of starting FINN.no AS, where he was CEO until 2009. Terje Seljeseth has a background in IT
and studied at Datahøgskolen and the University of Oslo.
Trond Berger, CEO Schibsted Norge
Didrik Munch is appointed CEO of the new entity Schibsted Norge AS and has been a member of Schibsted’s
Group Management Team since August 2009. Munch was CEO of Bergens Tidende from 1997 before joining
Media Norge as CEO in 2008. Munch is Board Chair of Bergens Tidende AS, Aftenposten AS, Stavanger Aftenblad
AS, Fædrelandsvennen AS and FINN.no AS. Previous positions include Division Director of the business market at
DnB and a police lawyer. Munch is a graduate of the Norwegian Police University College and has an MA in Law
from the University of Bergen.
Christian Printzell Halvorsen, CEO Finn.no
Christian Printzell Halvorsen became the CEO of FINN in October 2009. He joined FINN in 2007 as Vice President
of Strategy and Product Development. Before joining Schibsted, he worked as a management consultant for
McKinsey & Company focusing on strategic technology issues in media and financial institutions. Christian Printzell
Halvorsen holds and MSc in Computer Science from Norwegian University of Technology and Science in
Trondheim, Norway.
Olivier Aizac, CEO Leboncoin.fr
Olivier Aizac (37) joined Schibsted in April 2006 to participate to the launch of leboncoin.fr. He has been General
Manager of leboncoin.fr since then. Graduated from ESSEC, French School of Management, he has been working
in the Internet industry for 12 years (Vivendi Universal, Hersant Media).
2
Shaping the Media ofTomorrow. TodayRolv Erik Ryssdal, CEO
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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 sellor 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 thatthe opinions contained herein are fair and reasonable, however no representation or warranty, express orimplied, is given by or on behalf of the Company, any of its directors, or any other person as to the accuracyor completeness of the information or opinions contained in this document and no liability is accepted for anysuch 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 andprojections 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 torisks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness of suchinformation and statements. Several factors could cause the actual results, performance or achievements ofthe Company to be materially different from any future results, performance or achievements that may beexpressed 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 thispresentation. Neither the issue nor delivery of this presentation shall under any circumstance create anyimplication that the information contained herein is correct as of any time subsequent to the date hereof orthat 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 informationincluded in this presentation.
22
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Global leader in Online classifieds
Strong cash flow from Media Houses
Seizing the Scandinavian online opportunity
1
2
3
3
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14.4 billion in revenue 25 countries 7,200 employees
The Schibsted fundament
Building on two solid cornerstones
Media HousesOnline Classifieds
4
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Well-managed digital transition
Online growth
Online share
Revenue
EBITDA
2001 2011
8,0
14,4
8,3 %
15,2 %
2001 200720112001
5
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Gradually built a strong European position over the past 10 years
Selective approach in large growth markets in Asia Pacific and Latin America
Well-managed digital transition
International expansion
6
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Shaping the Media of Tomorrow.Today.
People with values
We have integrity
We are innovative
We are a team
We are here to win
7
A global leader in Online classifieds
8
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Ambitious target in a major market:
Global #1 in Online Classifieds
Portfolio with strong
inherent growth profile
Upsides in optimization
and ―best practice‖ sharing
Investing in growth both
organically and through
greenfield investments
and targeted M&A
Value creation is the
ultimate measure
Optimizing of
established operations
Base Camp
Greenfield Investments
Targeted M&A
Maturing of investment stage sites
“Best practice” sharing
9
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Online classifieds
The winners take it all
Sources:
EBITDA margin 2010: Company
reports and presentations
Size vs #2: Pageviews(AdPlanner),
active objects where applicable,
company presentations.
1x 3—5x 8—10x
100%
0%
5–30%
30–50%
50–70%
Size versus second player
EBITDA margin Players that are much larger than #2
reap higher margins
10
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3 y
ea
rs
5 y
ea
rs
Online Classifieds
Portfolio structureP
rofi
tab
ilit
yIn
vestm
ent
Retu
rn
Start-up Traction Established
Time
Operations in established phaseOperations in investment phase
Two new sites in
profitable Established
phase as of Q1 2012
11
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Online Classifieds
Economies of scale key to global success
Joint concept and product development
Marketing of the sites
Site roll-out planning
Price optimization
Establishing new verticals
Enhancing return - reducing risk
12
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Online Classifieds
Investing in the race to become #1
The window of opportunity is still open to create leading sites
Strategic approach, built on broad set of criteria
Market size, growth and wealth
Online penetration and growth
Competition and market risk
Evaluating greenfieldopportunities as well as targeted M&A
13
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Online Classifieds targets:
Solid growth and high margins
Current portfolio set for 15%-20% annual growth rate
Growth upside from new investments and acquisitions
Annual investment level of ~NOK 500 million -gradually lower drag on overall margin
Online Classifieds ex. Hitta
32 % 33 % 31 %
38 %
44 %46 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2009 2010 2011
NO
K m
illRevenue
EBITDA Margin inc. New ventures
EBITDA Margin Established Phase
14
Media Houses Scandinavia
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Subscription based Single Copy
Norway:
Sweden:
Media Houses
Strong regional market leader
Leading brands - quality journalism
#1
#2 #1
#1
Strong media reach – print and online
Powerful traffic drivers – launch pads for new services
Solid cash flow – fully invested in traditional media
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• Product development and focus on quality journalism
• Optimize price and circulation
• Adjust cost base
• Develop online positions – including user paid products
Single Copy newspapers
• Product development and focus on quality journalism
• Maintain stable circulation revenues
• Consolidate and improve operational efficiency
• Convert loyal subscriber base to digital products
Subscription newspapers
Media Houses
Strategic direction and actions
17
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Media Houses
Well positioned in growing online market
Strong positions in both the print and online domains
Print advertising is cyclical and in structural decline
Scandinavia stands out, as print holds up better despite world highs in online and mobile penetration
Internet advertising grows sharply in Scandinavia as well as globally
Remarkably resilient to economic uncertainties
Several drivers continuing to support the growth trend
0
100
200
300
400
500
2005 2006 2007 2008 2009 2010
NO
K m
illio
n
VG Print Global Daily Press (Indexed)
0
100
200
300
400
500
2005 2006 2007 2008 2009 2010
NO
K m
illio
n
Online
VG Online Global Internet (Indexed)
Advertising trends
Source: IRM Media, Schibsted 18
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Media Houses Outlook
Continued high cash generation
Well positioned, highly cash generative and fully invested in traditional media
Expecting flat to slightly declining revenue
Multi-lever approach to manage decline in print
Online growth set to continue
Seeking to maintain strong cash flow
Media House – EBITDA and Capex
1 384 1 313
(270)(219)
1 114 1 094
(400)
(200)
-
200
400
600
800
1 000
1 200
1 400
1 600
2010 2011
NO
K m
illio
n
EBITDA CAPEX EBITDA - CAPEX
19
Seizing theScandinavian Online Opportunity
20
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New Online Opportunities
Building high-margin businesses
Media Houses Online Classifieds
Online
Growth
Media
LEVERAGING OUR STRONG MARKET POSITIONS
21
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New Online Marketplaces
Initial focus on Personal Finance
22
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New Online Marketplaces
Efficient Traffic Fund Models
23
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Payment Solutions
New lever of online traffic footprint
Single sign on and payment
model for all Schibsted sites in
Scandinavia
Online classifieds, market
places, online newspapers
Easier payment of digital
content and classifieds items
Opening access to online
classifieds transactions
Relevant volume of NOK 350
billion on Blocket and Finn
Step by step development to
minimize risk
24
Summing Up
25
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Strategic direction
Key takeaways
Media HousesOnline Classifieds
Online
Growth
Media
Focus on cash flow
Manage structural challenges in print
Building digital revenue models
Seizing the digital growth opportunity
in core markets
Continued profitable growth
Targeting globalleadership
Shaping the media of tomorrow. Today.
26
28
Schibsted Classified Media
Creating WinnersTerje Seljeseth, CEO Schibsted Classified Media
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Ambitious 3-5 year target:
Global #1 in Online Classifieds
2
Optimizing of
established operations
Base Camp
Greenfield Investments
Targeted M&A
Maturing of investment
stage sites
“Best practice”
sharing
Online Classifieds
3
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Not only migration
-
50
100
150
200
250
300
1995
1996
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1998
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2006
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2008
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2010
2011
Aftenposten FINN.no
Revenues from car classifieds
4
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300
1995
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Aftenposten FINN.no
Not only migrationbut also finding new revenues
Revenue FINN TorgetRevenues from car classifieds
0
50
100
150
200
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2006 2007 2008 2009 2010 2011
5
Mobile is also a migration we will handle
0 %
5 %
10 %
15 %
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2011 v
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2011 v
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2011 v
52
2012 v
02
2012 v
04
2012 v
06
Web Mobile Mobile % of Total
Visits per Week, Blocket.se
Source: KIAindex.se6
7
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0
500
1000
1500
2000
2500
3000
3500
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
MN
OK
History of growth
Revenue MNOK
8
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Already a strong position
Doubleclick Ad Planner January 2012
0
5
10
15
20
25
30
Naspers Classifieds
Ebay Classifieds
Schibsted Craigslist.org
Bil
lio
n p
ag
e v
iew
s/m
on
th
9
Traction EstablishedLaunch Startup
Our “creating winners” pipeline
10
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Traction EstablishedLaunch Startup
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World class organization
• Autonumeus local
companies
• Systematic best
practice sharing
• Systematic strategy
implementation
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Traction EstablishedLaunch Startup
Low cost High cost Medium cost Profit
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TractionLaunch Startup
Portfolio management
Established
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The growth continues
TractionLaunch Startup Established
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CustoJusto and Jofogas are ready to move up to the Traction Phase
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Custojusto.pt Olx.pt
Coisas.com Miau.pt
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100 000 000
150 000 000
200 000 000
250 000 000
Jofogas.hu Vatera.hu
Aprod.hu Expressz.hu
Page Views, Google Ad Planner16
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0
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100 000 000
150 000 000
200 000 000
250 000 000
300 000 000
jun.0
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Willhaben.at eBay.atBazar.at Kijiji.at
Subito and Willhaben are ready to move up to the Established Phase
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Subito.it Bakeca.it eBay.it Kijiji.it
Page Views, Google Ad Planner17
Experience has taught us to know when
we are about to hit a home run
18
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Huge upside if we succeed
2011 Revenues per
Internet User*
Internet Universe * per country,
Millions
*) Google AdPlanner Audience January 2012
EUR 32
EUR 10
EUR 1,3
3,1
4,5
4,5
5
6
6
7
8
8
8
8
8
16
19
31
31
37
49
79
Ireland
Norway
Finland
Portugal
Austria
Hungary
Chile
Romania
Sweden
Belgium
Switzerland
Philippines
Malaysia
Indonesia
Mexico
Spain
Italy
France
Brazil
19
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Summary
Launch team in Stockholm analyze the markets, launch test platforms and conducts planned experiments
Systematic evaluation of strategies for sites in the four stages of development based on earlier successes and failures
Continuous evaluation of portfolio ensures optimal use of investments
Specialized support teams in Oslo, Barcelona, Madrid and Singapore
Strong autonomous local sites with systematic best practice sharing between countries
20
FINN.noFurther growth for an established market leader
Christian Printzell Halvorsen CEO FINN.no
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Key takeaways
FINN is strengthening an already strong position
Future growth will come from optimization of existing marketplaces, development of new marketplaces and mobile expansion
Building a high-performance innovation culture to attract talent and sustain future growth
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FINN has an impressive positionin the everyday life of Norwegians
Brand awareness: 96% aided / 82% unaided
2,5-3,1 million unique visitors per week. Norway’s 2nd-3rd largest website.
471 200 076 visits on FINN or 96 visits per Norwegian
3 988 618 days spent on FINN or 18.5 hrs per Norwegian
4,1 million ads with a total value of NOK 541 billion or 22% ofGDP
3
2011
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Strong positions in all verticals
Jobs #1 ~75%
Real estate #1 ~100%
Cars #1 ~90%
General merchandise #1 65-85%
Travel #2 2-50%
Services / craftsmen #1-2 ~40%
Display advertising #1 20-25%
Vertical Position Market share
of advertised positions1
of homes for sale2
of used cars sold3
of online traffic4
of bookings / ads5
of online job quote requests6
of online revenues7
Note: Revised market share calculations. Not comparable to previously
communicated numbers.
Source: 1) NAV, 2) SSB/NEF, 3) Statens vegvesen, 4)
TNS/Alexa/internal estimates, 5-6) internal analysis, 7) INMA
4
Steady growth and strong, stable margins
1731331006343
4845
424646
4145
43
3639
- 20
- 10
0
10
20
30
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50
400
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1.200
1.000
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600
-200
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1.135948
691
20062005
+24%
2004200320022001
17
2000
-16
2010
576
2009*
398
2008*
267
2007-600
2011
738
FINN revenues, MNOK
EBITDA margin, %
* Excluding Sesam 5
In Norway, FINN’s position is comparable to Google’s online dominance in the US
6
19
40
EBITDA
Revenues
18
57
FINN financials 2011
per capita, USD
Google financials 2011
(US only*) per capita, USD
Note: Comparable results for Google (globally) in 2011 were 37,9 billion USD in revenues and 11,7 billion
USD in income from operations. Assumed same distribution of revenues and income from US (47%).
ESTIMATE
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Growth in all verticals in 2011
6372
159
196
167
31
8694
216219220
38
110116
230
265
299
Cars Real
Estate*
Jobs General
merch.
Travel Services
2011
2009
2010
FINN revenues, MNOK
Established verticals Newer verticals
* Excluding one-off revenues from sales of
vacation rentals in 2010 (7 MNOK)
Growth drivers:
Continued volume growth
Price optimization
New and improved
products
7
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Future growth areas
Optimize existing marketplaces
Establish new marketplaces
Mobile / multichannel
”The marketplace graph”
World class processes:Innovation and Sales
1
2
3
4
5
8
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Optimize existing marketplaces
9
1
Examples
Conservative
price optimization
• Price increases / decreases on C2C ads
• Enhanced contract structures
• Price differentiation and upsell products
Subverticals
• Property projects / new homes
• Commercial properties
• Aftermarket service for cars, boat, MC
Product
upgrades
• Personalization
• Targeted advertising
• Social elements
• Decision support
• Mobile
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After 1 year, FINN is tied for the lead in the services for craftsmen market2
0 %
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30 %
40 %
50 %
60 %
70 %
jan.11 feb.11 mar.11 apr.11 mai.11 jun.11 jul.11 aug.11 sep.11 okt.11 nov.11 des.11 jan.12
Mittanbud
FINN oppdrag
Anbudstorget
Gulesider
Marketshare, % of job quote requests
ESTIMATE
Underlying market growth January 2012 20-25% YoY
Note: Excluding real estate and car services from
MittAnbud 11
12
Penger.no shows a promising start. Car insurance to be launched Q2 2012
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40 41 42 43 44 45 46 47 48 49 50 51 52 1 2 3 4 5 6
Week
Weekly unique visitors
2
13
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Mobile opportunities and risks. >50% of visits from new channels by 2015
Assumptions: 3G+ penetration 2014E: 95%, Smartphone penetration
2014E: 75% (based on Morgan Stanley Research)
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011
01.0
3.2
012
01.0
6.2
012
01.0
9.2
012
01.1
2.2
012
01.0
3.2
013
01.0
6.2
013
01.0
9.2
013
01.1
2.2
013
01.0
3.2
014
01.0
6.2
014
01.0
9.2
014
01.1
2.2
014
User
sessio
ns
/ m
on
th
Growth projection FINN.no Desktop and Mobile channels
Mobile
Desktop
Today
= 1
7%
ESTIMATE
3
14
Mobile innovation is priority #1. Several products in pipeline3
15
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”The marketplace graph”: Verticals tied together by user data
16
John
Canon 7D
Sells
“The mapping of everybody, all goods
and services, and how they interact in
the marketplace”
FINN.no
Eckersbergs
gate 31,
Oslo
Toyota Yaris
2007-mod
USA july 2012
2 adults
+ 2 children
Volksvagen
Passat
Has testdriven
Searching for
OwnsRating: 3/5
Works at
Owns
The ”classifieds
graph” that we know
today
4
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Building a strong innovationculture to sustain future growth
FINN way of innovation FINNopp innovation tool FINN labs
FINNovation hackathon FINN sandbox FINN awards
5
17
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18
Awarded ”best place to work” in Norway.Focus on performance culture to attract talent
GPTW?
5
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Key takeaways
FINN is strengthening an already strong position
Future growth will come from optimization of existing marketplaces, development of new marketplaces and mobile expansion
Building a high-performance innovation culture to attract talent and sustain future growth
19
20
Leboncoin.fr
Number 1 in French online classifiedsOlivier Aizac, CEO Leboncoin.fr
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Leboncoin.fr : what is this ?
2
To get back,
What is Leboncoin.fr?
A free generalistclassifieds website
Blocket.se French littlesister launched in April 2006
The #1 online player
3
39,5 % reach in French
internet population
More than 18 million ads
online
6 billion page views per
month
#1 position in Cars, Real
Estate and Goods
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Leboncoin.fr is the biggest market place in France
4
Page Views per Month, Google Ad Planner
0
1 000 000 000
2 000 000 000
3 000 000 000
4 000 000 000
5 000 000 000
6 000 000 000
7 000 000 000fe
b.0
9
mar.
09
apr.
09
mai.09
jun.0
9
jul.09
aug.0
9
sep.0
9
okt.09
nov.0
9
des.0
9
jan.1
0
feb.1
0
mar.
10
apr.
10
mai.10
jun.1
0
jul.10
aug.1
0
sep.1
0
okt.10
nov.1
0
des.1
0
jan.1
1
feb.1
1
mar.
11
apr.
11
mai.11
jun.1
1
jul.11
aug.1
1
sep.1
1
okt.11
nov.1
1
des.1
1
jan.1
2
Leboncoin.fr eBay.fr
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The clear #1 player in cars
812 981
271 768
102 217 98 155 97 993 93 003 89 163 87 658 66 900 57 823 38 887 25 170
-
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
900 000
Le
bo
nco
in*
Le
Ce
ntr
ale
-Ca
rad
isia
c
Au
tore
fle
x
Au
toS
co
ut2
4
an
no
un
ce
sja
un
es
Arg
us
Paru
Vendu
32
1a
uto
eb
ay P
A
Ou
estF
ran
ce
au
tom
ob
ile
To
pa
nn
once
s
5
Number of cars in the database – Autobiz, Dec 2011
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73 000
368 000
1 188 000
1 979 000
2 756 000
3 469 000
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000
4 000 000
12/2006 12/2007 12/2008 12/2009 12/2010 12/2011
CAGR
116%
6
Steady growth over 6 years
+404% +39%+67%+223% +26%
UIP / day – monthly average
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39 000 000 000
10 000 000 000
6 400 000 000
6 400 000 000
3 600 000 000
1 700 000 000
1 300 000 000
1 300 000 000
1 200 000 000
1 100 000 000
facebook.com
orange.fr
live.com
leboncoin.fr
youtube.com
sfr.fr
msn.com
yahoo.com
free.fr
pole-emploi.fr
7
Leboncoin.fr is in the top 5 websites in FranceGoogle DoubleClick Adplanner – January 2012
To get back,
One of Schibsted’s most important growth drivers
47 %
61 %
70 %
0 %
20 %
40 %
60 %
80 %
100 %
0
20
40
60
80
100
2009 2010 2011
Revenue EBITDA margin
76% revenue
growth Y/Y in
2011 Mill
ion E
UR
8
Most recognised brand for online classifieds in France
Top of Mind Unaided Aided
40,0 %
21,4 %
1,6 %
2,2 %
0,4 %
0,2 %
5,4 %
Leboncoin.fr
Ebay
Priceminister
Paruvendu
Topannonces
Vivastreet
Annoncesjaunes
Logicimmo
Olx
Segloger
59,2 %
45,0 %
8,4 %
7,0 %
3,6 %
4,4 %
0,0 %
0,2 %
85,8 %
83,4 %
64,0 %
78,2 %
51,2 %
29,2 %
29,6 %
25,2 %
32,8 %
9
High media awareness : More than 2000 press clippings in 2011
10
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11
The 2nd most searched word on google.fr
How did we gethere?
To get back,
A true child of the Schibsted roll out strategy
Launched in April 2006
French little sister of
Blocket.se
50/50 Joint Venture
Between Schibsted and Spir
Communication
Schibsted acquired Spir’s
shares in November 2010
Valuing the company at EUR
400 million (100% basis)
13
To get back,
Why do 14 million French spendtheir spare time on leboncoin?
12 years of experience
A millennium in Internet
history
Easy
Immediate result in a single
click
Proximity
Search is done by region on
a map, everybody knows
where he lives
Simple
Placing an ad only takes a
few minutes. No subscription,
few criteria, no payment
Quality
Ads are checked and
validated before going live.
No duplicate ads, no Nigerian
letters, no forbidden content.
Visibility
Navigation is more window
shopping than search
14
To get back,
A long-term business model
A real focus on user experience
Online classifieds is a
competitive market
Agile and pragmatic business
models
Adapt to the competition and
environment
Technical competence and
autonomy
The site is constantly tuned to
market needs
Entrepreneurial spirit
To get back,
From a start-up to full-service company
Focus on product teams
over the first years
Build up local sales
team and F&A
In-source national sales
team and strengthen all
departments41heads
12/2010
12/2011
88
12/2012
145
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Focus on diversifying revenues
Local advertising
Insertion fees
National advertising
B2B services
B2C services
Partnerships
Business is growing through many revenues lines
To get back,
Mobile – a fast rolling train
iPhone app launched in
December 2011
Already 1,3 million
downloads
Developments on Android
is next step
Clear direction to improve
user experience and
simplicity of use
Clear target:
Get same position on
mobile as on the web
Media Houses ScandinaviaDidrik Munch, CEO Schibsted Norge
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What we do
PROFITABILITY TRANSFORMATION
POSITIONS
ACTIONS
PLANS
IN PRINT TO DIGITAL
2
3
Market leaders in Scandinavia
1
No. 1 single copy paper
No. 1 site by traffic
No. 1 in web TV
No. 1 mobile site
2 Stockholm’s quality subscription paper
Top high-end online destination
Local presencein the most affluent cities
1
1 No. 1 subscription paper
4 strong positions in 4 major cities
Oslo
Kristansand
Stockholm
Bergen
Stavanger
Number one positionsin browser, mobile, print
SW
ED
EN
NO
RW
AY
POSITIONS
ACTIONS
PLANS
No. 1 single copy paper
No. 1 site by traffic
No. 1 in web TV
No. 1 mobile site
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SC
HIB
ST
ED
SU
BS
CR
IPT
ION
PA
PE
RS
US
AV
ER
AG
E
Circulation (volume) Advertising (revenue)
Circulation (volume) Advertising (revenue)
Scandinavian economies
are well connected…
… but maintain continuously high
print newspaper readership and advertising revenues
UK
53%
56%
Scandinavia 89%
Broadband
penetration
US
Mobile subs
pr capita
US 1.0
UK 1.3
Scandinavia 1.5
4
POSITIONS
ACTIONS
PLANS
-28%
Current
level
0,72
Peak
level
1,00
Peak
level
0,47
1,00
-53%
Current
level
-10%
Current
level
0,901,00
Peak
level
-11%
Current
level
0,89
Peak
level
1,00
Not in Anglo-American decline
Sources: (1) Morgan Stanley (2010), Wired (2011); (2) ITU (2011);
(3) Schibsted historical and current figures;
(4) Huber Research Partners (2012)
(1)
(2)
(3)
(4)
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Cooperation and tighteningcreates leaner media houses
Loose coordination,
redundant functions
Tight cooperation and
centralized support units
MEDIA HOUSES IN 2008,
PRIOR TO MERGERS
MEDIA HOUSES NOW,
AFTER TRIMMING
ROOM TO IMPROVE
GOING FORWARD
Focused media houses
with light backbones
5
POSITIONS
ACTIONS
PLANS
To get back,
Operationally focused –emphasizing improvement
6
DONE
DOING
WILL DO
Centralized IT infrastructure
and applications
Centralized finance, payroll,
accounting
Co-located in Stockholm
Common call centre and digital
development
Shared content among regional
media houses
Common management groups
Printing plants spun off in
separate profit centre
Pooling resources in online
development
Sales cooperation in Norway
Common system platforms
Cost-programme in Norway
and Sweden
Common circulation back-
office functions
Common digital back-office
Profitability program in
printing plants
Offshore digital development
in Poland
Increased outsourcing
Centralization of support
functions
Bigger units to water down
overhead
Improved sales cooperation
between subscription and
single copy sales newspapers
Reduce exposure to legacy
infrastructure
Shedding non-core activities
Co-locating in Oslo
POSITIONS
ACTIONS
PLANS
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22 July terror
attack
Earthquake in
Japan
Financial
turmoil
Aftenposten’s
exclusive
coverage of
Wikileaks’ US
Embassy
Cables
BT road deaths
special feature
BT workout site
Stavanger Food
vertical
Most content
purely local
Written for and
by residents
A smart approach to content sharing
Local for local All for one
One for all All for all
7
POSITIONS
ACTIONS
PLANS
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EBITDA for online and print news, subscription papers in Norway
8
Print News 2009 including printing plants – spun off in 2010
New price structure shifted NOK 70 million from printing to newspapers in 2011. Print News includes corporate overhead in Norway
Committed to profitability - and to offset inflation and wage growth
ONLINE NEWS PRINT NEWS PRINTING PLANTS
-97
-55
-18
18
-100
-50
0
50
2008 2009 2010 2011 >>
233
410
483
0
100
200
300
400
500
2008 2009 2010 2011 >>0 0
81
0
70
670
100
200
300
400
500
2008 2009 2010 2011 >>
MAINTAIN
MAINTAIN
POSITIONS
ACTIONS
PLANS
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Cost adaptation
Price hikes
Mobile growth
Online commercialization
Emerging user payment
Improvements keep cash flow, transformation assures future
Profitability in print
Growth in digital
9
POSITIONS
ACTIONS
PLANS
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Taken out 420 FTEs and NOK 500m from Norwegian
subscription papers since merger in 2008
COST AND PERSONNEL DISCIPLINE
MATERIALIZES IN REDUCED FTE LEVELS
-420
2010
0
2006 20122004
1 800
2 200
2 100
2 000
1 900
2008
Ongoing cost program in Norway despite advertising
growth and margin expansion:
We stay ahead
Program end
~1.600
Program
in Norway
~120
2011 YE
~1.720
FTE REDUCTIONS IN NORWAY IN CURRENT
PROGRAM
Example: Media Norge FTEs 2004-12 Example: Media Norge FTEs 2011-14
10
POSITIONS
ACTIONS
PLANS
We have levers to pull to respond to structural challenges
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Pricing is an upside– partly offset circulation decline for years
Example: Single copy papers,
Norway. Average prices weekdays
and weekends
MON-THURSDAY FRI-SUNDAY
COMPETITION 16.3 kr
13 kr
20 kr
20 krSCHIBSTED
+25%
+54%
11
POSITIONS
ACTIONS
PLANS
To get back,
Offshore development teams –critical mass and cost efficiency
12
POSITIONS
ACTIONS
PLANS
”Home” development team
1 cost
Typical effect of
offshoring
HO
ME
OF
FS
HO
RE
1 developer
:
Potency scenario
1 cost
2 developer
:
Cost reduction scenario
0,5 cost
1 developer
:
Cost effiency in offshore units Facing recruitment constraints on top talent
Currently setting up development unit in
Krakow, Poland to leverage top university
environment and emerging tech cluster
We are able to transfer print and browser positions to mobile
0,0
6,0
12,0
18,0
48 52 4 8 12 16 20 24 28 32 36 40 44 48 52 4
Millio
n
0
1 000
2 000
3 000
4 000
5 000
jan.10 jan.11 jan.12
NO
K T
ho
usan
ds
Strong mobile user growth
VG ahead of the packRevenues following suit
last twelve months
Weekly page views Monthly revenues
VG mobile, PIs vs competitors VG mobile, revenues per month
13
POSITIONS
ACTIONS
PLANS
Monday morning
Tirsdag morgen
Tuesday morning
Real effect to advertisersis key to monetizing mobile
14
POSITIONS
ACTIONS
PLANS
Emerging user paymentAftonbladet Plus 134.200 subs.
15
POSITIONS
ACTIONS
PLANS
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1Strong
positions for
the long run
Brands and
products that
grow in mobile
and user payment
Willingness
and ability to
sustain
profitability
16
POSITIONS
ACTIONS
PLANS
We will defend our positions and safeguard profitability,whilst growing on new platforms
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Key takeaway:
We’re committed
DISCIPLINE
ON THE COST SIDE
COMMITTED TO
SUSTAIN CASH FLOWS
TRANSFERRING
POSITIONS TO MOBILE
• Maintain cost at current real levels by keeping cost discipline
• Ensure a stable cash flow from traditional channels across the business cycle,
• Transferring our current offline positions to mobile media
17
POSITIONS
ACTIONS
PLANS
Leveraging our digital assets to create additional valueSverre Munck, Executive Vice President
back,
Schibsted Growth Media –leveraging our digital traffic to launch new services
Schibsted Payment – leveraging our customer base to increase ARPU
2 ways of building additional value:
2
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Schibsted Growth Media – leveraging our digital traffic to launch new services
3
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4
Strategic development
• Going from print news/classifieds, to online news/classifieds, to a broader
online position
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Strategic objectives
✓ Use our national presence and traffic to secure
future opportunities in the online space.
✓ Maximize the use of our network of sites to
drive overall traffic and profit growth.
✓ Mature local concepts into international
success stories
5
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Every week
Source: Orvesto Internet, net reach Schibsted Sweden 2010Aftonbladet, Blocket, Hitta.se, Prisjakt, SvD,, Tasteline, E24, TV.NU
6
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7
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Traffic vs ARPU
8
• Companies with large audiences often have very low ARPU-
levels.
• Companies with high ARPU-levels struggle to build enough
audience.
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Our Online Traffic Fund ModelAn incentivised model to turn TRAFFIC into VALUE
9
Priority Criteria
1 Growth potential, aiming for the # 1 spot.
1 Entrepreneurial culture
1 Schibsted’ s value building potential
Investment Criteria
2 Product focus
2 Revenue/business model
2 Lock-in effects
2 Platform synergies
2 Strategic focus
2 Social Media/Communities
1
0
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We buy to scale revenues and traffic
We focus on small companies with:
A working product with clear value to the users
A proven revenue model
11
Investment stage:
Start Growth Maturity Stabilization Decline
back,
First acquisition…
Bytbil.com
Acquired in 2002
Car Classifieds
Profitable same year we acquired them
Market leader
12
back,
Second acquisition...
Blocket.se
Acquired in 2003
General classifieds portal
Market leader
International potential
13
back,
Third acquisition...
Hitta.se
Acquired in 2005
Directory services (white & yellow pages)
Strong competitor to telco incumbent Eniro.
14
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And today we are …….
*
*
* Part of SCM
15
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TvM Revenues and EBITDA incl. Hittaare already significant
Revenues and EBITDA, Schibsted Tillväxtmedier
[MNOK]
335
511
656
835
-18
25 101 117
2008 2009 2010 2011
Revenues EBITDA
+36%CAGR 08-11:
16
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Exporting the success
17
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Schibsted Payment – leveraging our customer base to increase ARPU
18
Media Houses
Online Classifieds
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Media Houses:
User payments are only about 6% of digital revenues
Some positive experiences worldwide suggest that there is willingness to pay
Propensity to login, provide user data driven by social media
Aftonbladet + is a success, additional trials to take place in 2012
- We will try freemium, metered and bundled models
- PPV does not seem promising
- Convenience, availability is key factor
User payments represent new potential for Schibsted:
19
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Online Classifieds
Currently user payments are limited to paid private ads (FINN and Blocket), as well as voluntary upsell features
The digital payments industry is in rapid transformation (escrow, P2P, mobile completion, NFC, e-wallets, etc)
Increased focus on anti-fraud measures
Potential exists for our classified sites to increase service offerings to private users related to payments –convenience, safety, value-added services
User payments represent new potential for Schibsted:
20
Our common login and payment platform:
21
back,
SPiD: our iTunes-like login and payment solution:
22
Joint login and payment platform for Schibsted
companies
Payment platform• Click&Pay
• Subscriptions
• Online classifieds
services
• Stored payment info
• Prepaid/gift
card/voucher
• Clearing house
Single Sign On
• Campaign mgmt
• Sales Tools• User Admin
• Analysis tools
SPID: managing registration and payment flow at Aftonbladet Plus
23
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Enabling the transaction – making it safer
24
Remote sales
Pickup sales
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Migrate Aftonbladet to SPiD: Jan 2012
Migrate VG to SPiD: March 2012
Additional Media House and Classified launches
SPiD roadmap for 2012
25
back,
Schibsted Growth Media –leveraging our digital traffic to launch new services
Schibsted Payment – leveraging our customer base to increase ARPU
2 ways of building additional value:
26
The Schibsted Ecosystem
OLC
Growth
Media
SPiD Mobile
MH
TvM
27
FinancialsTrond Berger,
CFO
To get back,
Financials
Resources to match strategy
Commitment to cost control and profitability
Strong track record in cutting costs
Financial targets reflect disciplined growth strategy
15-20% revenue growth for Online classifieds
Equity ratio: 35%-50%
Net Interest Bearing Debt/EBITDA: 1x-2x
Around NOK 500 million in investment spending in new Online classifieds ventures
Fully financed
Growth initiatives taken on P&L
Limited CAPEX at 2-3% of revenues
Predictable dividend policy
25%-40% of cashflow
Media Houses
Online Classifieds
2
To get back,
Online Classifieds
Disciplined expansion
Ambitious growth targets set out in
order to capture #1 position
Profitable growth
Annual spending of around NOK
500 million based on current
environment
A disciplined approach
Stringent investment criteria
Continuous follow-up on new
investments
38 %44 %
46 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2009 2010 2011M
NO
K
Revenue
EBITDA margin Established phase
CAGR
16%
Revenues and margin
3
To get back,
-
100
200
300
400
500
2005 2007 2009 2011
MN
OK
New venture spend
Investment criteria
Approach has paid off
Organic investment in on-line
classifieds since 2005 amounts to
NOK 923 million
Resulting in established market
leader in France
Leboncoin.fr with ~65-70%
EBITDA-margin
Market leaders in:
Italy
Austria
Malaysia
Typical time to break even for new
online investments 3-5 years
4
To get back,
Investment Criteria -
ROI determined by risk profile
Becoming #1 in on-line classifieds
Measured by value creation
Organic growth
Online Classifieds
Blocket rollouts
Acquisitions
Bolt-on acquisitions
Flexibility to be pragmatic
Stringent investment criteria
Required return determined by risk profile
Local Market
Presence
Market
DynamicsCompetitive
Situation
Required Rate of
Return
Risk Considerations
5
To get back,
Media Houses
Focus on quality productsand cashflow
Media Houses might face a flat to
slight decline in revenues
Print costs scrutinized
Online growth
Focus on maintaining strong cash
flow from all business areas
Leverage on existing strong market
positions
EBITDA – Media Houses
0
200
400
600
800
1 000
1 200
1 400
1 600
2009 2010 2011N
OK
mill
ion
Media Houses Scandinavia
Media Houses International
6
To get back,
426 318
1 286
1 100
-
500
1 000
1 500
2 000
2008 2011
Raw Materials Personnel Other Opex
Media Houses
Track record of cutting costs
Key objective to align costs with
revenues
Successful cost reductions
NOK 1.7 billion program
completed in 2010 with primary
focus on Media Houses in print
media
NOK 190-210 million per year
cost reduction program initiated
in late 2011 and progressing to
plan
Schibsted Norge established,
gathering all Norwegian
operations under one
management
Cost cut 14%
339 332
939 840
0
500
1 000
1 500
2 000
2008 2011
Cost cut 11%
MN
OK
MS
EK
Operating Costs
7
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8Q4 2011
Good cost control in Media Houses, increased activity in Online
3638
37
Operating
Costs 2010
11 605
Operating
Costs 2011
12 233
Other in
Media
Houses
Raw
materials
Growth
companies
648
Divestments
(131)
Currency
Operating cost change Y/Y
MNOK
Growth companies include SCM, Finn.no and Schibsted Tillväxtmedier
To get back,
Limited capital expenditure
Schibsted is to a large extent fully
financed
Normal maintenance CAPEX
around NOK 400 million
Mainly IT systems to streamline
operations
Majority of new initiatives financed
over P&L
Change in 2011 in Anuntis
Investments charged to P&L
rather than being capitalised
-1 000
-500
0
500
1 000
1 500
2 000
2 500
2007 2008 2009 2010 2011
MN
OK
EBITDA and Capex
Group EBITDA Capital Expenditure
9
To get back,
Strong cash generation
Operational cash flow of
NOK 1.6 billion in 2011
This includes NOK 412 million
spend on new investments in
Online classifieds
Balanced portfolio and disciplined
approach results in stable cashflow
also in demanding years
Dividend policy set in relation to
operating cash flow
EBITDA and Capex 2011
1 313
(219)
1 094
1 488
(100)
1 388
(412)
(24)
(436)
(1 000)
(500)
0
500
1 000
1 500
2 000
EBITDA CAPEX EBITDA less CAPEX
NO
K m
illio
n
Media Houses
Online Classifieds
Online Classifieds New Ventures
10
To get back,
12 692 12 509
3 699 3 827
3 741
6 659
7 090
4 499
5 560 5 178
Assets Debt and Equity
Assets Debt and Equity
Fixed Assets Current assets
Equity Long-Term Liabilities
Current liabilities
Solid Balance Sheet
Balance sheet strengthened
through downturn
Equity up by NOK 1.6 billion
exclusive of share issue of NOK
1.3 billion in 2009
Long term debt reduced by NOK
2.5bn in same period.
Majority of new investments taken
directly over P&L thereby not
adding to balance sheet
Net interest bearing debt at
NOK 1.64 billion
0.8x 2011 EBITDA
2008 2011
MN
OK
11
To get back,
Turn off ’CLASSIFICED’ via
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Divested non core operations
TV/film production
Film/DVD distribution
Polaris Media
Direct mail databases
Media archives
Photo agency
Financial assets and real estate divested
Balance sheet clean up has been carried out last two-three years
Total proceeds more than NOK 2 bn.
12
To get back,
0,0
1,0
2,0
3,0
4,0
5,0
6,0
0
1 000
2 000
3 000
4 000
5 000
6 000
2007 2008 2009 2010 2011
Net Interest Bearing Debt
NIBD/EBITDA
Comfortable financial gearing
Net interest bearing debt over
EBITDA 1x-2x
In a normal situation closer
to 2x than 1x
More flexible than previously as
online classifieds business is
less exposed to cyclical swings
In special situations up to 3 X with
a clear plan of reduction to normal
range
Target for equity ratio 35-50% with
a minimum ratio of 25%M
NO
K
Net Debt and EBITDA
13
To get back,
Comfortable financing -
Flexible financing structure
Limited capital expenditure
Majority of growth initiatives taken over P&L
Total 2011 CAPEX of NOK 354 million
Net Interest Bearing Debt of NOK 1.6 billion
Equals 0.8x EBITDA
Secures flexibility to pursue strategic options
To take part in consolidation
To carry out small and medium sized acquisitions
Buy out partners or minorities if opportunities occur
14
To get back,
New bond issue secures 5 and 7 years financing at favorable rates
NOK 800 million bond issue
completed in in February
2012
NOK 500 million with
5 years maturity,
NIBOR +215 bp
NOK 300 million with
7 years maturity, 5.9%
swapped to floating rate
Schibsted has no official
rating, but has obtained a
”shadow-rating” of BBB
(stable) by the issuer banks
-
500
1 000
1 500
2 000
2 500
3 000
3 500
< 1 yr < 2 yrs < 3 yrs < 4 yrs < 5 yrs > 5 yrsM
NO
K
Other interest-bearing debt Bonds and CP'sDrawn bankfacilities Undrawn bankfacilitiesNew Bonds
Maturity profile as of 31 Dec 2011 including bonds issued in February 2012
Debt maturity profile
To get back,
6,00
0,00
1,50
3,00
3,50
-10 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
2007 2008 2009 2010 2011 P
Dividend per share (NOK) Payout ratio
Maintaining dividend capacity
Schibsted targets a pay-out ratio
that over time will in the range of
25% to 40% of cash flow
Depending on solidity
Macroeconomic outlook
Investment requirements
Schibsted holds approximately
1 million treasury shares
1% of shares
AGM has authorized to buy back a
total of 10% of shares
Buybacks may be considered to
adjust capital structure
Dividend payments
16
All fonts in charts are
Key takeaways
Profit improvement and revenue growth
Balance Sheet
• Flexibility to match growth ambitions
• Equity Ratio of 35% - 50%
• Net Debt / EBITDA : 1 – 2 X
Capital Expenditure
• Near fully financed
• Capex in the range of 2 – 3% of revenues
Dividend Payments
• Predictable dividend policy of 25% - 40% of operating cash flow
17