Q2 2018 LONDON ROADSHOW CEO Rolv Erik Ryssdal , CEO Leboncoin.fr Antoine Jouteau and Head of IR Jo Christian Steigedal 29 August 2018
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. 2 Q2 2018 Roadshow London
Q2 2018 – Continuing our steady growth • Marketplaces: Revenues continue to grow, and profits increase • Revenues up 16%*; EBITDA margin up 5%-points to 35%* • France, Spain, Norway and Brazil all showing strong development in Q2 • Lower margin in France due to acquisitions and increased marketing – Leboncoin.fr EBITDA margin 58 percent • Investment phase losses are declining • Publishing: Digital continues to grow • Stable revenue development with solid digital growth and 8% EBITDA margin • Schibsted Growth: Continues to expand • Revenues up 12% to NOK 455m. EBITDA margin increased to 26%. • Lendo is growing well, looking into new market opportunities *) Including proportionate share of JVs, adjusted for currency effects. 3 Q2 2018 Roadshow London
AGENDA Marketplaces • Publishing • Growth • Finance • Summary • 4 Q2 2018 Roadshow London
MARKETPLACES 5 Q2 2018 Roadshow London
Marketplaces We maintain our 15-20% annual growth target Focus on cash flow and profitability improvement Focus on improved cash flow and 16-19 NOK billion, rolling 12 months profitability Strengthening verticals in existing markets CAGR +16% 8,5 7,1 6,4 15-20% medium to long term growth outlook in France 3,2 2,7 2,7 2,4 1,9 1,5 Significant potential in profitable OLX Brazil Q2 16 Q2 17 Q2 18 FY 2022 Revenue EBITDA ex Investment phase EBITDA Pro forma, including contribution from joint ventures and associates as if we had consolidated the companies proportionately 6 Q2 2018 Roadshow London
Marketplaces Verticals are driving solid revenue growth Revenue growth driven by verticals…. … of which real estate and cars are most important +16% 1 Other Jobs Display advertising +7% 26% Real estate Generalist 37% +19% Verticals 2 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 Q2 2018 Roadshow London 7
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 8 Q1 2018
Leboncoin.fr 9 Q2 2018 Roadshow London
We are #1 in Classifieds in France with 28m users/month) and one of the preferred brands ADS CUSTOMERS AUDIENCE In top 10 favourite brands More than 26m online ads No. 5 website in France 800,000 60 500,000 professionals in terms of traffic new ads categories 15% of French companies posted every 50.6 day 45.9 DEVICE IMPACT ON 44.9 70% 1% French GDP 1 29.5 of the audience 98m transactions 1 28.1 on mobile & 800,000 job positions filled tab devices Source: Company data & Mediametrie Note: 1) Excluding Real Estate 10 Q2 2018 Roadshow London
We will continue to have an ambitious growth strategy built on 4 key drivers Expected revenue drivers Clear strategy for growth • Move along value chains (e.g. transaction) #1 Accelerate our virtuous circle • Reinforce of our leadership position in key verticals (RE, Motors & Jobs) • Focus on purchase intent on Advertising #2 Verticalize our approach • External growth strategy (M&A) #3 Strenghthen advertising offer Expected cost drivers • Investment in Product & Tech Invest in adjacent markets #4 • Marketing spending • Expansion of our sales team Source: Company data 11 Q2 2018 Roadshow London
In France we see 15-20 percent annual growth potential medium term … and plan to increase market shares in … over the next 2 -4 years We have grown revenues 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 690 • Increase penetration among car Revenue 285 EBITDA dealers and real estate agents • Optimize price structures 236 Real estate 360 • Facilitate transactions 196 • Leverage traffic to increase 166 158 market share in display 140 advertising 115 Cars 150 107 • Explore adjacent businesses 184 Real estate, Jobs 180 Cars, jobs Market Leboncoin Q2 15 Q2 16 Q2 17 Q2 18 *) Management estimates for 2017. LBC FY 2017 12 DNB Nordic TMT Seminar 2018
Marketplaces We will continue to grow revenues based on leadership positions in verticals Traffic and ad volume leadership in real estate Clear market leader in cars Market share dealers Market share agents Market share pro ads Market share pro ads 86% 47% 72% 44% 65% 32% 31% 47% 25% 33% 15% 13% Leboncoin LaCentrale AutoScout24 Leboncoin LaCentrale 321Auto Leboncoin SeLoger LogicImmo Leboncoin SeLoger LogicImmo #2 #3 #2 #3 #2 #3 #2 #3 Traffic (million UV/month) Market share private ads Traffic (million UV/month) Market share private sellers 11.9 73% 11.1 89% 5.3 4.8 3.4 3.0 14% 10% 4% 4% Leboncoin LaCentrale L’Argus Leboncoin LaCentrale ParuVendu Leboncoin LaCentrale LogicImmo Leboncoin ParuVendu Pap.fr #2 #3 #2 #3 ParuVendu #2 pap.fr #3 #2 #3 Source Market share dealers/agents and ads: AutoBiz March 2018. 13 Q2 2018 Roadshow London Traffic data: Mediametrie (Dec 2018) – not including apps for leboncoin only
Regular product updates to increase efficiency and improve user experience IMAGE RECOGNITION Category is chosen automatically depending on the picture Pictures are automatically 80 % positively recognized Ad insertion flow Suggested category Automatic category 14
We have launched our peer-to-peer solution MESSAGING SELLER SEND BUYER DELIVERY DISCUSSION AN OFFER ACCEPT IT CONFIRM & PAY 15
Marketplaces In France, we saw continued growth in revenues and traffic – EBITDA margin 58% for Leboncoin.fr isolated France 1 Revenues (NOK million) and EBITDA margin • Fast growing revenues in verticals • Price optimization supported by product enhancements +21% 2 800 • Ramping up in jobs 700 • Newly acquired A Vendre A Louer yields good results in 600 real estate 500 • Traffic growing by 12% Y/Y – driven by product 61% 57% 58% for 400 54% enhancements and marketing Leboncoin only 300 • EBITDA margin decline in Q2 as a result of 200 • Increased marketing spending (3-4pp) 100 • Acquired assets (3-4pp) - • Leboncoin.fr “isolated” margin of 58% Q2 16 Q2 17 Q2 18 Revenues EBITDA margin 1) Including Leboncoin, MB Diffusion, Avendre A Louer and Kudoz 2) No effect from IFRS 15 in Q2 16 Q2 2018 Roadshow London
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