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Q3 2017 ROADSHOW New York and Boston CFO Trond Berger & VP Head - PowerPoint PPT Presentation

Q3 2017 ROADSHOW New York and Boston CFO Trond Berger & VP Head of IR Jo Christian Steigedal Disclaimer This presentation (hereinafter referred to as the "presentation") has been prepared by Schibsted ASA ("Schibsted" or


  1. Q3 2017 ROADSHOW New York and Boston CFO Trond Berger & VP Head of IR Jo Christian Steigedal

  2. 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 Q3 2017 Roadshow USA November 2017

  3. Strong track record in online classifieds; continued growth going forward Solid track record in Online classifieds Well positioned in attractive verticals Focused strategy to utilize potential Long term revenue growth Strong revenue growth in verticals Deepening roots in the verticals Revenue mix and growth Jan-Sep 17 MNOK Revenue mix by market Developing and providing +18% Other +20% tools for professional clients 7,696 Other Norway 6,813 5,689 19% 23% Advertising 4,741 Demonstrate and enhance Spain 16% Verticals* +4% value for clients 13% Sweden 62% 29% Generalist Verticals Display Targeting increased revenue France 2014 2015 2016 2017 advertising per user, reduce ARPU gap Q3 LTM 15-20% growth target medium-long term maintained to industry leaders Margin expansion, reduced investments Leading traffic positions in verticals gives Utilizing scale by developing common potential to increase monetization platforms and components EBITDA margin* Investment phase losses (mEUR)* 30 27 Messaging 26 Series 15 Fraud control -63 -70 -71 Data/AI -122 2014 2015 2016 2017 2014 2015 2016 2017 Common next generation online First 9 months First 9 months classifieds platform *) Pro forma Further reduction in investment phase losses in 2018 3 Q3 2017 Roadshow USA November 2017

  4. Ambitions for future growth with support by value enhancing M&A Bolt-on acquisitions In-market consolidation Portfolio optimization Recent case examples Recent case examples Recent case examples Increased stake: Brazil Increased stake Merger: 4 Q3 2017 Roadshow USA November 2017

  5. Long term growth track record a combination of organic growth and acquisitions Online classifieds revenues (NOK million ) 17% growth first 9 months 2017 7,696 Logos indicates M&A transactions 6,813 +16% 5,689 4,741 4,184 3,647 3,198 2,650 2,375 2,196 1,747 939 455 331 173 103 63 43 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 2017 *) Adjusted for currency fluctuations, acquisitions and divestments Lendo.no transferred from Media Houses as of 2014, Mitt Anbud and Servicefinder transferred from Media Houses as of 2015. 5 Q3 2017 Roadshow USA November 2017

  6. Prudent balance sheet strategy to be agile and able to react on potential opportunities • Important for Schibsted to have a prudent NIBD and NIBD/EBITDA (12m rolling) development balance sheet 6,000 5,642 • Communicated leverage target range of 5,047 NIBD/EBITDA 1.0-2.0x Increased stake in • The acquisition of 25% of OLX Brazil has 4,500 Brazil increased debt levels above the target range 2.5 • Gearing level up to 2.0-3.0x may be accepted in 2.1 3,000 periods after larger transaction – with a plan to reduce gearing levels 1,590 1,500 1,074 974 • Issuing new equity to lower gearing and 0.7 0.5 0.5 ensure financial flexibility 0 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 6 Q3 2017 Roadshow USA November 2017

  7. Capital increase 21 November 2017 - Key take-aways • Raising NOK 2.5 billion by issuing B-shares to strengthen capital base for strategic Online classifieds acquisitions and structural changes • Schibsted has executed on the communicated strategy: Continued growth in revenues and profitability in Online classifieds 1. Organic growth 2. In-market consolidation 3. Bolt-on acquisitions 4. Portfolio management – increased stakes in Brazil and Chile, exit Asia 5. Focus on cash flow and profitability 7 Q3 2017 Roadshow USA November 2017

  8. France and Spain have significant growth potential WELL POSITIONED FOR ONLINE CLASSIFIEDS MARKET SIZE ESTIMATES LONG TERM GROWTH Jobs Real Estate Motor MEUR* Pop: 694 391 341 UK 1 426 65m Growing ARPU in professional verticals Pop: 536 351 179 Germany 1 066 81m Increasing our market share Pop: Schibsted revenues 145 340 130 France 615 67m LTM mEUR 246** Pop: Schibsted revenues Take advantage of structural Spain 170 46m LTM mEUR 130** developments in the markets *) Excl. display; Management estimates. Germany: UBS - Scout24 initiation report (Feb17) UK: Real Estate: Exane report on Rightnove, March 17 **) Incl. online advertising for Schibsted sites 8 Q3 2017 Roadshow USA November 2017

  9. We are utilizing our Global scale in product and tech development Selected examples: MESSAGING TARGETED DATA TOOLS FOR ADVERTISING ANALYTICS PROFESSIONAL CUSTOMERS 9 Q3 2017 Roadshow USA November 2017

  10. The second hand effect benefits society, users and Schibsted ATTRACTING TALENT ATTRACTING USERS 10 Q3 2017 Roadshow USA November 2017

  11. Leading digital transformation in media, tight cost control Increased profits in Publishing operations Digital subscription numbers grow rapidly, Scandinavia creating foundation for significant revenues Revenues and EBITDA (NOK million) Number of digital only subscribers +1% +59% 240,000 2,500 200,000 2,000 160,000 NOK million 1,500 120,000 1,000 80,000 11% 9% 500 40,000 7% 0 0 2013 2014 2015 Q3 2016 Q3 2017 Q3 15 Q3 16 Q3 17 Svenska Dagbladet Online revenues Offline revenues EBITDA margin Norwegian Subscription Papers Figures include Media House Norway and Media House Sweden excluding Schibsted Growth. 11 Q3 2017 Roadshow USA November 2017

  12. Schibsted Growth portfolio with potential for expansion Lendo: Strong growth and increasing margins in attractive • Comparing prices on consumer segment with large growth potential loans • Empowering consumers through 750 100 transparency and simplicity • Effective customer acquisition for 600 Revenues NOK million 75 lenders +49% % EBITDA-margin 450 • Commission based business 50 model 300 • So far launched in Sweden, 41% 37% Finland and Norway - scalable 25 29% 150 into additional markets 0 0 2015 2016 2017 LTM EBITDA-margin Finland Norway Sweden 12 Q3 2017 Roadshow USA November 2017

  13. 13 Q3 17 ONLINE CLASSIFIEDS

  14. Finance Solid revenue growth across the Online classifieds portfolio Revenues and EBITDA margin for Online classifieds Developed markets in Q3 External revenues, growth in local currency Million NOK, Pro forma, including proportionate share of JVs and associates Revenue +22% 1 growth Y/Y Revenue (mNOK) EBITDA margin FRANCE 2 029 23% 580 60% 1 659 NORWAY 1 436 21% 472 46% 45% 44% 43% SWEDEN 2 2% 259 59% 34% 29% 27% 27% 323 31% SPAIN Other Q3 2015 Q3 2016 Q3 2017 6% 201 9% developed Revenues EBITDA margin EBITDA-margin developed phase markets 3 2) Ex Servicefinder the growth in Sweden in Q3 is 4% 3) Ireland, Italy, Colombia, Austria & the car vertical in Hungary. Growth rate hampered 1) Adjusted for currency fluctuations by non-organic effects. 14% underlying growth. 14 Q3 2017 Roadshow USA November 2017

  15. Online classifieds Balanced portfolio with revenue and EBITDA growth Revenues* (EUR million) EBITDA* (EUR million) Developed +18% +20% phase 196.4 89.0 167.1 73.9 Other Other 150.3 65.1 Sweden Sweden Norway Norway Spain Spain France France Q3 15 Q3 16 Q3 17 Q3 15 Q3 16 Q3 17 +80% Investment 20.7 phase 11.5 6.8 -14.3 -22.0 -22.4 Q3 15 Q3 16 Q3 17 Q3 15 Q3 16 Q3 17 *) Pro forma, including proportionate share of JVs and associates 15 Q3 2017 Roadshow USA November 2017

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