Vend Marketplaces ASA

Quarterly Report • Apr 28, 2023

Interim Report Q12023

January - March

The quarter in brief

Transition in Nordic Marketplaces to unlock significant user and customer value over time.

For Schibsted, 2023 started off with an underlying revenue growth of 1 per cent in Q1, driven by Nordic Marketplaces and Growth & Investments. EBITDA was subdued by higher personnel costs, cost inflation and revenue mix, ending at NOK 423 million, down 12 per cent compared to Q1 last year.

Nordic Marketplaces, which is dominating our Group EBITDA and market valuation, made important progress in its transition to a new, vertical-based operating model. This transition will unlock significant user and customer value over time as we presented at our Capital Markets Day in March. In the first quarter, underlying2 revenues increased by 6 per cent thanks to solid classifieds revenue growth across all verticals except Jobs, while advertising

was down due to market headwinds. FBITDA ended at NOK 420 million, 5 per cent below last year due to revenue mix and increased costs from new hires last year.

As outlined at our Capital Markets Day, our News Media operations in Norway and Sweden were affected by continued pressure in the print business, market headwinds in advertising, and general cost increases in a high inflationary environment. Despite continued strong, double-digit revenue growth in digital subscriptions, underlying2 revenues in News Media decreased by 2 per cent in Q1. EBITDA was break-even, above the issued trading update driven by better advertising performance in Norway in late March. We expect continued volatile and tough advertising markets in the short-term, particularly in Sweden, and need to constantly adapt our cost base to the reduced revenues. This is addressed by the announced cost programme which will accelerate throughout the year.

Growth & Investments continued its upbeat trend across the portfolio from last quarter, with underlying2 high single-digit revenue growth and improved profitability in Lendo and Prisjakt. In line with the announced new strategy for Lendo, focusing on profit growth, operations in Finland, Italy and Spain were ceased which will improve profitability throughout the year.

As a fearless force for change, my team and I will continue to seize the opportunities which arise in more uncertain times, and adapt our organisation to the current, more uncertain market environment, with an increased emphasis on efficiency and cost control. In this context, the successful transformation in Nordic Marketplaces, to strengthen our existing classifieds offerings and to accelerate the transition to transactional offerings, is a top priority. And we will continuously explore and develop options to reduce our ownership in Adevinta in a value creating way for our shareholders.

• Kristin Skogen Lund, CEO

「Foreign exchange neutral basis and including pro-forma revenues for 3byggetilbud.dk A/S before Schibsted ownership

2 Foreign exchange neutral basis

This quarter's highlights

• Group: Revenues of NOK 3,776 million, 1 per cent underlying revenue growth. EBITDA of NOK 423 million, down 12 per cent Yof mainly driven by News Media.
• Nordic Marketplaces: 6 per cent underlying revenue growth, drivenue growth in classifieds while advertising was down. EBITDA of NOK 420 million, 5 per cent down from last year driven by Jobs and Recommerce.
• News Media: Underlying revenues 2 per cent down due to print business and market headwinds in advertising, particularly in Sweden. General cost increases in a high inflationary environment limit Q1 effect of announced cost programme, while effects from the programme will accelerate throughout the year. EBITDA at break-even, above the issued trading updater advertising performance in Norway in late March.
• Delivery: Positive trends in Helthjem, with higher C2C volumes, while decline in Morgenlevering led to 1 per cent revenue decline and slightly negative EBITDA in Q1.
• Growth & Investments: High single-digit revenue growth and improved profitability across the portfolio led to an EBITDA of NOK 54 million, 90 per cent up from last year. Exit processes for Lendo and Prisjakt stopped due to market conditions.

Key figures

		First quarter		Year
(NOK million)	2023	2022	Change	2022
Schibsted Group
Operating revenues	3,776	3,648	4%	15,272
- of which digital	2,670	2,458	9%	10,563
EBITDA	423	480	(12%)	2,406
EBITDA margin	11%	13%		16%
Operating revenues per segment
Nordic Marketplaces	1,278	1,171	9%	4,856
News Media	1,791	1,798	(0%)	7,608
Delivery	471	477	(1%)	1,822
Growth & Investments	513	450	14%	2,035
EBITDA per segment
Nordic Marketplaces	420	443	(5%)	1,908
News Media	-	81	(100%)	531
Delivery	(3)	(13)	77%	(50)
Growth & Investments	54	29	90%	281
Other/Headquarters	(48)	(59)	20%	(263)

Alternative performance measures (APMs) used in this report are described at the end of the report.

Operating segments

Nordic Marketplaces

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Classifieds revenues	1.073	955	12%	3.967
Advertising revenues	118	131	(10%)	538
Other revenues	87	84	3%	352
Operating revenues	1.278	1,171	9%	4.856
EBITDA	420	443	(5%)	1.908
EBITDA margin	33%	38%		39%

Driven by double-digit growth in classifieds revenues, Nordic Marketplaces delivered a foreign exchange neutral revenue growth of 6 per cent in Q1.

This was primarily driven by the Mobility and Real Estate verticals in all markets, and solid growth in transactional revenues in Recommerce. This was partly offset by the Job vertical that saw continued volume decline due to market headwinds.

Also advertising revenues continued to decline in the quarter, affected by market headwinds.

EBITDA decreased compared to Q1 last year due to a change in revenue mix and increased costs from new hires last year to drive new business models.

Marketplaces Mobility

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Classifieds revenues	383	319	20%	1,446
Advertising revenues	54	58	(7%)	245
Other revenues	49	49	(1%)	203
Operating revenues	485	427	14%	1,894
EBITDA	220	209	5%	990
EBITDA margin	45%	49%		52%

The Mobility vertical saw good revenue growth across all markets in the quarter, and foreign exchange neutral revenues increased 10 per cent compared to last year.

The growth was driven both from good volume development in Norway and Denmark, and ARPA increase from price adjustments and upsell products in all countries, and primarily in Sweden. This is combined with continued growth in Nettbil.

This was somewhat offset by a challenging advertising market, leaving foreign exchange neutral advertising revenues down 11 per cent compared to last year.

Total costs increased year-on-year driven by new hires during 2022, while EBITDA increased 5 per cent compared to Q1 last year driven by revenues.

Marketplaces Jobs

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Classifieds revenues	369	392	(6%)	1,383
Advertising revenues	2	2	(4%)
Other revenues	ട	ന	27%	10
Operating revenues	375	397	(6%)	1,400
EBITDA	198	231	(14%)	782
EBITDA margin	53%	58%		56%

Norway is the leading revenue contributor within the Jobs vertical, representing more than 80 per cent of the revenues in the quarter.

The Job vertical experienced an accelerated volume decline across all markets due to a more challenging macroeconomic environment. Price adjustments led to a solid ARPA increase that softened the volume effect somewhat, but the market headwinds combined with

Marketplaces Real Estate

strong comparables from last year resulted in a foreign exchange neutral revenue decline of 7 per cent compared to last year.

EBITDA was impacted by revenue decline and cost increases from new hires during 2022, and decreased by 14 per cent compared to last year.

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Classifieds revenues	190	147	29%	711
Advertising revenues	14	18	(23%)	74
Other revenues	12	11	6%	46
Operating revenues	216	177	22%	830
EBITDA	64	48	34%	312
EBITDA margin	30%	27%		38%

The Real Estate vertical is primarily driven by Norway which stands for almost 80 per cent of the revenues in the quarter.

The vertical experienced continued strong growth in classifieds revenues in the quarter, driven by continued strong ARPA development in Norway. The ARPA growth was due to the new price model released early last year on top of regular price adjustments. On the volume side, Norway had a slight increase compared to last year in the quarter.

Finland saw good progress on key metrics with continued healthy growth in volumes, and Sweden experienced a solid growth in signing value on the transactional rental platform Qasa.

In total, foreign exchange neutral Real Estate revenues increased 20 per cent compared to last year.

EBITDA increased year-on-year driven by the strong revenue growth.

Marketplaces Recommerce

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Classifieds revenues	102	75	36%	316
Advertising revenues	43	50	(13%)	201
Other revenues	10	7	51%	31
Operating revenues	155	131	18%	547
EBITDA	(86)	(63)	(36%)	(266)
EBITDA margin	-55%	-48%		-49%

Foreign exchange neutral revenues in the Recommerce vertical increased 13 per cent in the quarter compared to last year, driven by transactional revenues that grew 3 times compared to Q1 last year. It was primarily the transactional offering "Fiks Ferdig" in Norway that was driving the growth, delivering approximately 376 000 transactions in Q1.

This growth was somewhat offset by a decline in classifieds listings compared to last year, due to the removal of ad insertion fees in Sweden in May last year. While this affects financial results negatively in the shorter term, it has strengthened our market

position with significant growth in listings and will enable the transition to a fully transactional model entailing good growth potential over time.

The Recommerce vertical is also negatively affected by market headwinds within advertising, affecting all countries and resulted in a decline in advertising revenues compared to last year.

EBITDA for the quarter ended at a loss of NOK 86 million, reflecting the continued investments in the new business model and the impact of cost increases from new hires during 2022.

News Media

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Advertising revenues	604	645	(6%)	2,811
-of which digital	478	493	(3%)	2,186
Subscription revenues	788	724	9%	3,029
-of which digital	425	350	21%	1,548
Casual sales	203	238	(15%)	966
Other revenues	195	190	3%	802
Operating revenues	1,791	1,798	(0%)	7,608
Personnel expenses	(688)	(660)	4%	(2,645)
Other expenses	(1,103)	(1,057)	4%	(4,431)
Operating expenses	(1,791)	(1,717)	4%	(7,077)
EBITDA		81	(100%)	531
EBITDA margin	-0%	5%		7%

News Media experienced a financially weak quarter due to advertising and continued pressure in print profitability, which led to a foreign exchange neutral revenue decline of 2 per cent compared to last year.

Advertising revenues were affected by a challenging advertising market in the first quarter. Particularly Sweden was affected by market headwinds, where foreign exchange neutral digital advertising revenues declined 18 per cent. However, a solid development in Norway with 5 per cent increase, driven by content marketing, offset part of the decline.

Digital subscription, on the other hand, continued to grow consistently, with double-digit growth in all main news products and a total foreign exchange neutral revenue growth of 20 per cent in the quarter. The increase was driven by both higher volumes and improved ARPU, and continued growth in Podme and News Media's "Full Tilgang" bundle in Norway.

Cost levels were affected by general cost increases in a high inflationary environment. This limited the effect of the previously announced cost programme, and EBITDA landed at a break even in Q1.

Delivery

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Operating revenues	471	477	(1%)	1,822
EBITDA	(3)	(13)	77%	(50)
EBITDA margin	(1%)	-3%		-3%

Delivery consists of the newspaper distribution and new businesses, mainly Helthjem Netthandel and Morgenlevering.

Revenues declined 1 per cent in the quarter due to continued decline in Morgenlevering driven by lower volumes due to macroeconomic trends and high comparables from last year when society was closed down due to COVID-19 restrictions.

Helthjem Netthandel, on the other side, grew 25 per cent in the quarter, driven by increased volumes in B2C combined with higher C2C volumes related to FINN's transactional Generalist offering "Fiks Ferdig".

EBITDA was negative in the quarter, driven by Morgenlevering, but improved compared to last year due to cost focus.

Growth & Investments

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Operating revenues	513	450	14%	2,035
EBITDA	54	29	90%	281
EBITDA margin	11%	6%		14%

Growth & Investments consist of Lendo, Prisjakt and other digital services like Compricer, MittAnbud and Servicefinder in addition to Schibsted Growth & Investments headquarters.

Total revenues in the first quarter grew 8 per cent on a foreign exchange neutral basis and adjusting Q1 2022 figures with proforma numbers for 3byggetilbud.dk A/S. The growth was driven by

continued growth momentum across the portfolio, with solid revenue growth and improved profitability in both Lendo and Prisjakt.

EBITDA increased 90 per cent and margin improved by 5 percentage points compared to Q1 last year, driven by revenue growth and continued profitability focus.

Lendo

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Operating revenues	329	297	11%	1.290
EBITDA	52	40	32%	197
EBITDA margin	16%	13%		15%

Lendo continued its strong growth momentum with a foreign exchange neutral revenue growth of 8 per cent in Q1 compared to last year, driven by Sweden and Norway. The growth was primarily driven by strong inflow of applications across countries and growth

in new verticals like credit cards in Norway and business loans in Sweden.

EBITDA margin increased 3 percentage points compared to last year, driven by revenue increase and continued profitability focus.

Prisjakt

	First quarter			Year
(NOK million)	2023	2022	Change	2022
Operating revenues	92	76	21%	382
EBITDA	18	12	44%	110
EBITDA margin	19%	16%		29%

Revenues in Prisjakt grew 18 per cent on a foreign exchange neutral basis, despite a tough e-commerce market, driven by higher earnings-per-click.

The improved revenues, combined with stringent cost control led to an EBITDA increase compared to last year.

Other / Headquarters

Other and Headquarters had an EBITDA of NOK -48 million in the first quarter against NOK -59 million in the same period last year. The improved EBITDA deficit compared to last year is mainly due to lower consultancy costs.

Outlook

As global macroeconomic risks have increased over the last quarters on the back of higher inflation, rate hikes by central banks, mounting recession fears and turmoil in the banking sector, shortterm visibility remains limited. Within our businesses, advertising revenues and revenues within the Job vertical in Nordic Marketplaces are particularly exposed to weaker macroeconomic conditions, while other parts such as subscriptions revenues in News Media or revenues from the Real Estate and Motor verticals in Nordic Marketplaces have historically been more resilient.

Yet, we remain confident in the growth potential for Nordic Marketplaces as the transition to a new, vertical-based operating model will unlock significant user and customer value over time. This was outlined at our Capital Markets Day in March where we introduced new medium-term financial targets for Nordic Marketplaces by vertical. Medium-term relates to 2024 and 2025, not 2023.

• Mobility: annual revenue growth of 12-17 per cent, EBITDA margin of 51-56 per cent
• · Jobs: low to mid-single-digit annual revenue growth, EBITDA margin above 50 per cent
• · Real Estate: annual revenue growth of 12-17 per cent, EBITDA margin of 42-47 per cent
• · Recommerce: Tripling revenues from 2022-2025, EBITDA break-even during 2025

For our News Media business, key focus is the continued transition to a future-oriented, digitally focused and sustainable news organisation, with even stronger emphasis on our subscription business, to secure News Media's long-term financial profitability and to safeguard its high relevance for society. News Media will continue to grow its strong and loyal customer base of 1.5 million subscriptions across Norway and Sweden further.

While we target low single-digit revenue growth and an EBITDA margin of 10-12 per cent for News Media in the medium term, we expect that revenues and margin will be below that range in 2023. This is due to significantly higher costs for our print products, and weakening revenue trends from print products and digital advertising in the short-term, given the increased macroeconomic risks. To return to the targeted margin range by 2024, a cost reduction programme of NOK 500 million in gross savings was initiated at the start of 2023. The cost reductions will be realised through improvements within the print value chain, through increasing operational efficiency across the organisation and by establishing a more effective and efficient organisation across the product, tech and consumer business domains, to better cater to user needs.

In Delivery, we expect revenue growth from 2023 onwards. However, given the weak financial development over the last quarters, particularly in Morgenlevering, we will continue to work on the cost base to address EBITDA losses in this segment going forward.

Lendo announced in January a shift in strategy, focusing on its strong positions in Sweden. Norway and Denmark, and planning to cease operations in Finland, Spain, Portugal and Italy which had combined EBITDA investment losses of approximately NOK 50 million in 2022. This change will enable Lendo to accelerate its market leading position in the Scandinavian markets, and to strengthen its profit growth which we see as value creating in the current market environment.

In light of the current macroeconomic environment and tight financing markets, the pursued exit processes for Lendo and Prisjakt have been stopped.

Group overview

Comments on the Group's result

Schibsted's consolidated operating revenues in Q1 2023 totalled NOK 3,776 million, up 4 per cent compared to last year. The Group's gross to NOK 423 million, equivalent to a decrease of 12 per cent. Please see information under Operating segments above for further details on the Group's performance in Q1 2023.

Depreciation and amortisation were NOK -314 million (NOK -263 million), mainly related to internally-generated intangible assets and right-of-use assets.

Other expenses in Q1 2023 were NOK -116 million (NOK -32 million) and mainly includes restructuring costs related to moving the printing operations to Vestby, close down of Lendo operations in Finland, Spain, Portugal and Italy, as well as headcount reductions.

Operating profit in Q1 2023 amounted to NOK 20 million (NOK 184 million).

Schibsted's share of profit (loss) from joint ventures and associates totalled NOK -5,295 million (NOK -53 million). This includes Schibsted's share of Adevinta's result for the fourth quarter of 2022, which was highly negative due to impairment, as well as adjustments for fair value differences and amortisation of excess values, totalling NOK -5,256 million.

Impairment loss on joint ventures and associates in Q1 2023 was NOK 7,281 million (NOK -13,531 million) and includes a reversal of previous write-down of the investment in Adevinta of NOK 7,292 million to reflect the market value at 31 March 2023.

Financial income in Q1 2023 includes fair value adjustments of NOK 289 million related to the total return swap entered into for 3 per cent of the Adevinta shares.

The Group reported a tax expense of NOK -9 million (NOK -45 million). Please see Note 6 for the relationship between Profit (loss) before tax and the reported tax expense.

Basic earnings per share in Q12023 was NOK 9.34 compared to NOK -57.49 in Q1 2022. Adjusted earnings per share in Q1 2023 was NOK -23.07 compared to NOK 0.44 in Q1 2022.

Cash flow and financial position

Net cash flow from operating activities was NOK 215 million in Q1 2023 compared to NOK 137 million in the same period of 2022. The increase is primarily related to positive effect from change in working capital partly offset by reduced gross operating profit and increased tax payments. Working capital in Q12022 was affected by temporary negative effects related to implementation of a new ERPsystem.

Net cash outflow from investing activities was NOK 216 million in 01 2023 compared to NOK 744 million in the same period in 2022, and

consists mainly of investments in product & technology. Investments are significantly reduced reflecting an increased focus on capital allocation.

Net cash flow from financing activities was negative by NOK 1,062 million in Q1 2023 compared to a net cash inflow of NOK 847 million in the same period in 2022. The cash outflow in Q1 2023 is mainly related to repurchase of debt and the ongoing share buyback programme.

The carrying amount of the Group's assets increased by NOK 2,862 million to NOK 46,570 million during the first quarter of 2023. The increase was mainly related to partial reversal of previous impairment of the investment in Adevinta. Schibsted's equity ratio is 68 per cent at the end of first quarter 2023, compared to 66 per cent at the end of 2022.

During O1 Schibsted has reduced its interest-bearing debt through purchases of its own bonds (FRNs) by a purchase of NOK 40 million of the FRN with maturity in June and purchase of totally NOK 186 million of the FRN with maturity in October 2023. Schibsted has a term loan of NOK 2 billion and NOK 1.8 billion of this loan has in April been extended by one year to 3 May 2025. Schibsted has a revolving credit facility of EUR 300 million. The facility was extended to July 2027 last year and there is still a 1-year extension option left. The facility is not drawn and secures a strong liquidity buffer going forward. Schibsted has a public rating of BBB/Stable from Scope Ratings which confirms Schibsted as a solid Investment Grade company.

In March, Schibsted extended the duration of its total return swap (TRS) agreement with financial exposure to 36,748,289 shares in Adevinta by terminating the TRS agreement announced at the end of November 2022, and entering into a new TRS agreement. The expiry date of the new TRS agreement is 7 March 2024. The price in the new TRS agreement is NOK 80.05 per share giving Schibsted a positive cash effect of approx. NOK 103 million as the price of the terminated contract was lower, at NOK 77.25 per share.

Schibsted launched a buyback programme in December 2022 buying back up to 4 per cent of the total amount of outstanding shares in Schibsted ASA (buying both A- and B-shares with the split of 45/55 respectively) at the amount of up to NOK 1.7 billion. The buyback programme is ongoing and gave a liquidity impact of NOK 509 million in Q1. The programme will be completed within the end of Q3 2023.

The cash balance at the end of March 2023 was NOK 2,683 million giving a net interest-bearing debt of NOK 3,464 million. Including the undrawn facility, the liquidity reserve amounts to NOK 6,101 million.

A dividend of NOK 2.00 per share is suggested for 2022 (to be paid in May 2023).

Schibsted owns 28 per cent of Adevinta. This asset contributes to a very solid financial position for Schibsted.

Condensed consolidated financial statements

Income statement

	First quarter		Year
(NOK million)	2023	2022	2022
Operating revenues	3,776	3,648	15,272
Raw materials and finished goods	(125)	(148)	(549)
Personnel expenses	(1,572)	(1,453)	(5,929)
Other operating expenses	(1,656)	(1,566)	(6,387)
Gross operating profit (loss)	423	480	2,406
Depreciation and amortisation	(314)	(263)	(1,117)
Impairment loss	((9)	(2)	(31)
Other income	36		13
Other expenses	(116)	(32)	(173)
Operating profit (loss)	20	184	1,0999
Share of profit (loss) of joint ventures and associates	(5,295)	(53)	(482)
Impairment loss on joint ventures and associates (recognised or reversed)	7,281	(13,531)	(22,823)
Gains (losses) on disposal of joint ventures and associates		1	675
Financial income	321	83	117
Financial expenses	(148)	(75)	(830)
Profit (loss) before taxes	2,179	(13,391)	(22,244)
Income taxes	(છ)	(45)	(254)
Profit (loss) from continuing operations	2,170	(13,436)	(22,497)
Profit (loss) from discontinued operations			(24)
Profit (loss)	2,170	(13,436)	(22,521)
Profit (loss) attributable to:
Non-controlling interests	10	18	60
Owners of the parent	2,160	(13,454)	(22,582)
Earnings per share in NOK:
Basic	9.34	(57.49)	(96.53)
Diluted	9.33	(57.49)	(96.53)

Statement of comprehensive income

	First quarter	Year
(NOK million)	2023	2022	2022
Profit (loss)	2,170	(13,436)	(22,521)
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension liabilities			(77)
Change in fair value of equity instruments	(19)		16
Share of other comprehensive income of joint ventures and associates	(26)	50	50
Income tax relating to items that will not be reclassified			17
Items that may be reclassified to profit or loss:
Foreign exchange differences	1,771	(1,475)	1,391
Accumulated exchange differences reclassified to profit or loss on disposal of foreign operation			3
Cash flow hedges and hedges of net investments in foreign operations	(27)	8	(16)
Share of other comprehensive income of joint ventures and associates	(381)	23	604
Income tax relating to items that may be reclassified	16	(7)	(1)
Other comprehensive income	1,333	(1,400)	1,988
Total comprehensive income	3,504	(14,836)	(20,533)
Total comprehensive income attributable to:
Non-controlling interests	16	15	59
Owners of the parent	3,488	(14,850)	(20,592)

Statement of financial position

(NOK million)	31 Mar 2023	31 Mar 2022	31 Dec 2022
Intangible assets	11,079	9,373	10,389
Property, plant and equipment	537	532	535
Right-of-use assets	2,002	1,369	1,796
Investments in joint ventures and associates	26,503	33,880	23,523
Deferred tax assets	568	604	584
Other non-current assets	897	963	937
Non-current assets	41,585	46,723	37,763
Contract assets	129	247	167
Trade receivables and other current assets	2,173	1,940	2,040
Cash and cash equivalents	2,683	1,337	3,738
Current assets	4,985	3,524	5,945
Total assets	46,570	50,246	43,708
Paid-in equity	7,092	7,061	7,095
Other equity	24,506	28,010	21,518
Equity attributable to owners of the parent	31,598	35,071	28,613
Non-controlling interests	206	220	188
Equity	31,804	35,291	28,801
Deferred tax liabilities	530	550	502
Pension liabilities	1,085	1,044	1,145
Non-current interest-bearing loans and borrowings	4,142	4,587	4,630
Non-current lease liabilities	1,941	1,244	1,755
Other non-current liabilities	610	511	588
Non-current liabilities	8,309	7,936	8,620
Current interest-bearing loans and borrowings	2,005	3,271	1,724
Income tax payable	151	141	232
Current lease liabilities	343	327	325
Contract liabilities	689	618	574
Other current liabilities	3,268	2,662	3,432
Current liabilities	6,456	7,019	6,288
Total equity and liabilities	46,570	50,246	43,708

Statement of cash flows

	First quarter	Year
(NOK million)	2023	2022	2022
Profit (loss) before taxes	2,179	(13,391)	(22,244)
Depreciation, amortisation and impairment losses (recognised or reversed)	(6,959)	13,796	23,971
Net interest expense	68	55	267
Net effect pension liabilities	(59)	(47)	(22)
Share of loss (profit) of joint ventures and associates	5,295	53	482
Dividends received from joint ventures and associates			56
Interest received	31	2	24
Interest paid	(85)	(46)	(266)
Taxes paid	(104)	(81)	(260)
Sales losses (gains) on non-current assets and other non-cash losses (gains)	(263)	(64)	(233)
Change in working capital and provisions	113	(141)	(90)
Net cash flow from operating activities	215	137	1,684
Development and purchase of intangible assets and property, plant and equipment	(235)	(265)	(1,048)
Acquisition of subsidiaries, net of cash acquired		(199)	(451)
Investment in other shares		(282)	(438)
Proceeds from sale of intangible assets and property, plant and equipment		2	3
Proceeds from sale of subsidiaries, net of cash sold		(1)
Sale of other shares			4,548
Net change in other investments	18		1
Net cash flow from investing activities	(216)	(744)	2,616
New interest-bearing loans and borrowings		1,000	3,158
Repayment of interest-bearing loans and borrowings	(226)		(3,669)
Payment of principal portion of lease liabilities	(127)	(87)	(333)
Change in ownership interests in subsidiaries	(210)	(33)	(33)
Net sale (purchase) of treasury shares	(499)	(33)	(239)
Dividends paid to owners of the parent			(468)
Dividends paid to non-controlling interests	(1)		(88)
Net cash flow from financing activities	(1,062)	847	(1,672)
Effects of exchange rate changes on cash and cash equivalents	8	(11)	2
Net increase (decrease) in cash and cash equivalents	(1,055)	229	2,630
Cash and cash equivalents at start of period	3,738	1,108	1,108
Cash and cash equivalents at end of period	2,683	1,337	3,738

Statement of changes in equity

	Attributable	Non-
	to owners of	controlling
(NOK million)	the parent	interests	Equity
Equity as at 31 Dec 2022	28,613	188	28,801
Profit (loss) for the period	2,160	10	2,170
Other comprehensive income	1,328	6	1,333
Total comprehensive income	3,488	16	3,504
Share-based payment	(3)	(1)	(3)
Dividends paid to non-controlling interests		(1)	(1)
Change in treasury shares	(505)	-	(505)
Business combinations		4	4
Loss of control of subsidiaries		(1)	(1)
Changes in ownership of subsidiaries that do not result in a loss of control	(6)	1	(5)
Share of transactions with the owners of joint ventures and associates	11		11
Equity as at 31 Mar 2023	31,598	206	31,804
Equity as at 31 Dec 2021	50,332	201	50,533
Profit (loss) for the period	(13,454)	18	(13,436)
Other comprehensive income	(1,397)	(3)	(1,400)
Total comprehensive income	(14,850)	15	(14,836)
Share-based payment	1
Change in treasury shares	(33)		(33)
Business combinations		8	8
Changes in ownership of subsidiaries that do not result in a loss of control	(381)	(4)	(385)
Share of transactions with the owners of joint ventures and associates	3		3
Equity as at 31 Mar 2022	35,071	220	35,291

Notes

Note 1 - Corporate information, basis of preparation and changes to accounting policies

The condensed consolidated interim financial statements comprise the parent company Schibsted ASA and its subsidiaries (collectively, the Group) presented as a single economic entity. Joint ventures and associates are presented applying the equity method. The interim financial report has been prepared in accordance with IAS 34 Interim Financial Reporting.

Schibsted ASA's condensed consolidated financial statements as at 31 March 2023 were approved at the Board of Directors' meeting on 27 April 2023. The interim financial statements are unaudited. All numbers are in NOK million unless otherwise stated. Tables may not summarise due to rounding.

The accounting policies adopted in preparing the condensed consolidated financial statements are consistent with those followed in preparing the annual consolidated financial statements for the year ended 31 December 2022. There is no impact on the interim financial statements from the mandatory implementation of new standards and amendments with effect from 1 January 2023.

With effect from 1 January 2023 the segments eCommerce & Distribution and Financial Services & Ventures are known as Delivery and Growth & Investments respectively. Comparable figures in the income statement and related note disclosures are not affected by the change of name.

Note 2 - Operating segments and disaggregation of revenues

Schibsted's operating segments are Nordic Marketplaces, News Media, Delivery and Growth & Investments.

Nordic Marketplaces comprises online classified operations in Norway (FINN.no), Sweden (blocket.se), Finland (tori.fi and oikotie.fi) and Denmark (bilbasen.dk and dba.dk). These operations provide technology-based services to connect buyers and sellers and facilitate transactions, from job offers to real estate, cars, travel, consumer goods and more. Nordic Marketplaces also includes adjacent businesses such as Nettbil, Qasa and AutoVex.

News Media comprises news brands such as VG, Aftenposten, Bergens Tidende in Norway and Aftonbladet and Svenska Dagbladet in Sweden both in paper and digital formats, in addition to printing plant operations in the Norwegian market.

Delivery is primarily the distribution operations in Norway which delivers not only newspapers but also parcels for businesses and consumers. Helthjem and Morgenlevering are the key eCommerce brands.

Growth & Investments consists of a portfolio of digital companies. Lendo is the key brand in the portfolio, offering digital marketplaces for consumer lending. In addition, Prisjakt offers price comparison for consumers.

Other / Headquarters comprises operations not included in the other reported operating segments, including the Group's headquarter Schibsted ASA and other centralised functions including Product and Technology.

Eliminations comprise intersegment sales. Transactions between operating segments are conducted on normal commercial terms.

In the operating segment information presented, Gross operating profit (loss) is used as measure of operating segment profit (loss). For internal control and monitoring, Operating profit (loss) is also used as measure of operating segment profit (loss).

			Other ,
	Nordic	News		Growth &	Head	Elimina
First quarter 2023	Marketplaces	Media	Delivery	Investments	-quarters	-tions	Schibsted
Segment revenues and profit:
Operating revenues	1,278	1,791	471	513	279	(555)	3,776
-of which internal	29	92	156	10	269	(555)
Gross operating profit (loss)	420		(3)	54	(48)		423
Operating profit (loss)	330	(161)	(24)	(8)	(117)		20
Other disclosures:
Capital expenditure	(97)	(75)	(6)	(37)	(19)		(235)
Lease expense	(16)	(55)	(10)	(10)	(27)		(119)

	Other /
	Nordic	News		Growth &	Head	Elimina
First quarter 2022	Marketplaces	Media	Delivery	Investments	-quarters	-tions	Schibsted
Segment revenues and profit:
Operating revenues	1,171	1,798	477	450	239	(487)	3,648
-of which internal	23	92	133	12	228	(487)
Gross operating profit (loss)	443	81	(13)	29	(59)		480
Operating profit (loss)	341	(48)	(27)	5	(87)		184
Other disclosures:
Capital expenditure	(89)	(70)	(11)	(32)	(62)		(265)
Lease expense	(15)	(47)	(8)	(8)	(17)		(96)
Year 2022
Segment revenues and profit:
Operating revenues	4,856	7,608	1,822	2,035	982	(2,032)	15,272
-of which internal	110	362	573	49	૭૩૪	(2,032)
Gross operating profit (loss)	1,908	531	(50)	281	(263)		2,406
Operating profit (loss)	1,469	(7)	(109)	154	(407)		1,0999
Other disclosures:
Capital expenditure	(362)	(302)	(68)	(126)	(190)		(1,048)
Lease expense	(64)	(201)	(38)	(37)	(71)	-	(410)

Capital expenditure comprises development and purchase of intangible assets and property, plant and equipments lease payments allocated on a straight-line basis over the lease term.

Disaggregation of revenues:

					Other /
	Nordic	News		Growth &	Head	Elimina
First quarter 2023	Marketplaces	Media	Delivery	Investments	-quarters	-tions	Schibsted
Classifieds revenues	1,073			2			1,074
Advertising revenues	118	604		22	-	(44)	701
-of which digital	118	478		22		(44)	574
Subscription revenues		788		76		(1)	863
-of which digital		425		76		(1)	499
Casual sales		203					203
Other revenues	84	167	470	413	240	(453)	921
Revenues from contracts with	1,275	1,762	470	513	240	(498)	3,761
customers
Revenues from lease	3	29	1		40	(58)	15
contracts, government grants
and others
Operating revenues	1,278	1,791	471	513	279	(555)	3,776

					Other /
	Nordic	News		Growth &	Head	Elimina
First quarter 2022	Marketplaces	Media	Delivery	Investments	-quarters	-tions	Schibsted
Classifieds revenues	955					(1)	954
Advertising revenues	131	645		34		(44)	766
-of which digital	131	493		34		(43)	615
Subscription revenues		724		49			773
-of which digital		350		49			399
Casual sales		239					239
Other revenues	84	165	477	367	221	(411)	903
Revenues from contracts with customers	1,170	1,772	477	450	221	(456)	3,634
Revenues from lease contracts, government grants and others		25	1		18	(31)	13
Operating revenues	1,171	1,798	477	450	239	(487)	3,648
Year 2022
Classifieds revenues	3,967					(1)	3,965
Advertising revenues	538	2,811		140		(177)	3,313
-of which digital	538	2,186		140		(175)	2,689
Subscription revenues		3,029		262		(4)	3,287
-of which digital		1,548		262		(4)	1,806
Casual sales		966					966
Other revenues	342	683	1,819	1,633	906	(1,708)	3,677
Revenues from contracts with customers	4,847	7,489	1,819	2,035	906	(1,888)	15,208
Revenues from lease contracts, government grants and others	10	118	3		76	(142)	64
Operating revenues	4,856	7,608	1,822	2,036	982	(2,032)	15,272

Note 3 - Other income and other expenses

	First quarter	Year
(NOK million)	2023	2022	2022
Gain on sale of subsidiaries	20	(1)	(1)
Gain on amendments and curtailment of pension plans	16	1	13
Total other income	36	-	13
Restructuring costs	(92)	(2)	(83)
Transaction-related costs	(15)	(30)	(90)
Loss on sale of subsidiaries	(2)
Other	(7)		(1)
Total other expenses	(116)	(32)	(173)

Restructuring costs in Q1 2023 include costs related to moving the printing operations to Vestby, close down of Lendo operations in Finland, Spain, Portugal and Italy, as well as headcount reductions.

Note 4 - Joint ventures and associates

	First quarter	Year
(NOK million)	2023	2022	2022
Net profit (loss) attributable to owners of the parent as reported by Adevinta ASA (EUR million)	(1,755)	26	30
Schibsted's share of reported amount	(5,172)	86	105
Adjustments for the effect of fair value differences from notional purchase price allocation	(84)	(102)	(413)
Total share of profit (loss) of Adevinta	(5,256)	(16)	(309)
Share of profit (loss) of other joint ventures and associates	(39)	(37)	(173)
Share of profit (loss) of joint ventures and associates	(5,295)	(53)	(482)

Share of profit (loss) of Adevinta ASA is reported with a one quarter lag as Adevinta ASA issues its interim financial statements later than Schibsted. Share of profit (loss) for the current quarter thereby reflects the profit (loss) of Adevinta for the previous quarter. The line item Adjustment for the effect of fair value differences from notional purchase price allocation refers to adjustments to amortisation and gains or losses on disposal from such fair value differences.

Other joint ventures and associates are primarily related to the venture portfolio.

In addition to the above specified share of profit (loss), Schibsted's investment in Adevinta ASA affects profit or loss through impairment losses, gains (losses) on disposal and changes in fair

value of a total return swap (TRS) with financial exposure to 36,748,289 shares in Adevinta ASA. The duration of the TRS was in Q12023 extended to 7 March 2024. Impairment losses or reversal of previously recognised impairment losses are reported in the line item Impairment loss on joint ventures and associates (recognised or reversed). The share price of Adevinta increased in Q1, leading to a reversal of impairment losses of NOK 7,292 million. Gains (losses) on disposal are reported in the line item Gains (losses) on disposal of joint ventures and associates. Change in fair value of total return swap is reported within financial income and expenses. The total effects for Profit (loss) before taxes is as follows:

	First quarter	Year
(NOK million)	2023	2022	2022
Total share of profit (loss) of Adevinta	(5,256)	(16)	(308)
Impairment loss (recognised or reversed)	7,292	(13,531)	(22,734)
Gains (losses) on disposal			686
Change in fair value of total return swap (Note 5)	289		(438)
Total	2,325	(13,546)	(22,795)

Note 5 - Financial items

	First quarter	Year
(NOK million)	2023	2022	2022
Interest income	31	2	24
Net foreign exchange gain	-	4	13
Gain from fair value measurement of equity instruments		76	76
Gain from fair value measurement of total return swap (Note 4)	289		-
Other financial income			3
Total financial income	321	83	117
Interest expenses	(99)	(58)	(291)
Net foreign exchange loss	(8)
Loss from fair value measurement of equity instruments	(36)	(14)	(82)
Loss from fair value measurement of total return swap (Note 4)			(438)
Other financial expenses	(4)	(3)	(19)
Total financial expenses	(148)	(75)	(830)

Loss from fair value measurement in Q1 2023 is related to the investment in eEducation Albert AB.

For more information on the total return swap, see Note 4.

Note 6 - Income taxes

The relationship between tax (expense) income and accounting profit (loss) before taxes is as follows:

	First quarter		Year
(NOK million)	2023	2022	2022
Profit (loss) before taxes	2,179	(13,391)	(22,244)
Tax (expense) income based on weighted average tax rates*	(481)	2,946	4,892
Prior period adjustments		(3)	(16)
Tax effect of share of profit (loss) from joint ventures and associates	(1,165)	(11)	(104)
Tax effect of impairment loss on goodwill, joint ventures and associates	1,602	(2,977)	(5,020)
Tax effect of other permanent differences	48	11	18
Current period unrecognised deferred tax assets	(15)	(10)	(24)
Tax (expense) income recognised in profit or loss	(9)	(45)	(254)
*Weighted average tax rates	22.1%	22.0%	22.0%

The permanent differences affecting the reported tax expense are primarily the items affecting profit (loss) before taxes related to Adevinta. These items, as detailed in Note 4, are all tax exempt.

Definitions and reconciliations

The condensed consolidated financial statements are prepared in accordance with international financial reporting standards (IFRS). In addition, management uses certain alternative performance measures (APMs). The APMs are regularly reviewed by management and their aim is to enhance stakeholders' understanding of the company's performance and financial position alongside IFRS measures.

APMs should not be considered as a substitute for, or superior to, measures of performance in accordance with IFRS.

APMs are calculated consistently over time and are based on financial data presented in accordance with IFRS and other operational data as described and reconciled below.

As APMs are not uniformly defined, the APMs set out below might not be comparable to similarly labelled measures by other companies.

With effect from 1 January 2023 the segments eCommerce & Distribution and Financial Services & Ventures are known as Delivery and Growth & Investments respectively. Affected APMs are not affected by the change of name.

Measure	Description	Reason for including
EBITDA	EBITDA is earnings before depreciation and amortisation, other income and other expenses, impairment, joint ventures and associates, interests and taxes. The measure equals gross operating profit (loss).	Shows performance regardless of capital structure, tax situation and adjusted for income and expenses related transactions and events not considered by management to be part of operating activities. Management believes the measure enables an evaluation of operating performance.
EBITDA margin	Gross operating profit (loss) / Operating revenues	Shows the operations' performance regardless of capital structure and tax situation as a ratio to operating revenue.

	First quarter		Year
Reconciliation of EBITDA	2023	2022	2022
Gross operating profit (loss)	423	480	2,406
= EBITDA	423	480	2,406

Measure	Description	Reason for including
Liquidity reserve	cash equivalents and Unutilised drawing rights on credit facilities.	Liquidity reserve is defined as the sum of cash and Management believes that liquidity reserve shows the total liquidity available for meeting current or future obligations.

		31 Mar
Liquidity reserve	2023	2022	2022
Cash and cash equivalents	2.683	1.337	3.738
Unutilised drawing rights	3,418	2,913	3,154
Liquidity reserve	6,101	4.250	6,892

Measure	Description	Reason for including
Net interest-bearing debt	Net interest-bearing debt is defined as interest- bearing loans and borrowings less cash and cash equivalents and cash pool holdings. Interest- bearing loans and borrowings do not include lease liabilities.	Management believes that net interest-bearing debt provides an indicator of the net indebtedness and an indicator of the overall strength of the statement of financial position. The use of net interest-bearing debt does not necessarily mean that the cash and cash equivalent and cash pool holdings are available to settle all liabilities in this measure.

	31 Mar	31 Dec
Net interest-bearing debt	2023	2022	2022
Non-current interest-bearing loans and borrowings	4.142	4.587	4.630
Current interest-bearing loans and borrowings	2,005	3,271	1,724
Cash and cash equivalents	(2,683)	(1.337)	(3,738)
Net interest-bearing debt	3,464	6,522	2,616

Measure	Description	Reason for including
Earnings per share adjusted	Earnings per share adjusted for items reported as other income, other expenses, impairment loss,	The measure is used for presenting earnings to shareholders adjusted for income and expenses
(EPS (adj.))	gain (loss) on disposal of joint ventures and associates, fair value measurement of total return swap and gain on loss of control of discontinued operations, net of any related taxes and non- controlling interests.	considered to have limited predicative value. Management believes the measure ensures comparability and enables evaluating the development in earnings to shareholders unaffected by such items.

	First quarter		Year
Earnings per share - adjusted	2023	2022	2022
Profit (loss) attributable to owners of the parent	2,160	(13,454)	(22,582)
Impairment loss	9	2	31
Other income	(36)		(13)
Other expenses	116	32	173
Impairment loss on joint ventures and associates (recognised or reversed)	(7,281)	13,531	22,823
Gains (losses) on disposal of joint ventures and associates		(1)	(675)
Gains (losses) from fair value measurement of total return swap	(289)		438
Gain on loss of control of discontinued operations			31
Taxes and Non-controlling interests related to adjustments above	(17)	(7)	(46)
Profit (loss) attributable to owners of the parent - adjusted	(5,337)	102	181
Earnings per share - adjusted (NOK)	(23.07)	0.44	0.77
Diluted earnings per share - adjusted (NOK)	(23.05)	0.44	0.77

Measure	Description	Reason for including
Revenues on a foreign exchange neutral basis	neutral basis are calculated using the same foreign exchange rates for the period last year and this year.	Growth rates on revenue on a foreign exchange Enables comparability of development in revenues over time excluding the effect of currency fluctuation.

Reconciliation of revenues on a	Nordic	News		Growth &	Other/HQ,
foreign exchange neutral basis	Marketplaces	Media	Delivery	Investments	Eliminations	Total
Revenues current quarter 2023	1,278	1,791	471	દ્વાર	(276)	3,776
Currency effect	(33)	(21)	(0)	(7)	2	(60)
Revenues adjusted for currency	1.245	1,769	471	506	(274)	3,717
Revenue growth on a foreign exchange neutral basis	6%	(2%)	(1%)	12%	(11%)	2%
Revenues current quarter 2022	1,171	1,798	477	450	(248)	3,648

Measure	Description	Reason for including
Revenues on a foreign exchange neutral basis adjusted for business combinations and disposals of subsidiaries	Growth rates on revenue on a foreign exchange neutral basis adjusted for business combinations and disposals of subsidiaries are calculated including pre-combination revenues for material acquired subsidiaries, excluding revenues from material disposed subsidiaries in the comparable figures and using the same foreign exchange rates for the period last year and this year.	Enables comparability of development in revenues over time excluding the effect of business combinations, disposal of subsidiaries and currency fluctuation.

Reconciliation of revenues on a foreign exchange neutral basis

adjusted for business	Nordic	News		Growth &	Other/HQ,
combinations	Marketplaces	Media	Delivery	Investments	Eliminations	Total
Revenues current quarter 2023	1,278	1,791	471	દ્વાર	(276)	3,776
Currency effect	(33)	(21)	(0)	(7)	2	(60)
Revenues adjusted for currency	1,245	1,769	471	506	(274)	3,717
Revenue growth on a foreign exchange neutral basis adjusted for business combinations and disposals of subsidiaries	6%	(2%)	(1%)	8%	(11%)	1%
Revenues current quarter 2022 (presented)	1,171	1,798	477	450	(248)	3,648
Revenues from acquired subsidiaries				19		19
Revenues current quarter 2022 adjusted for business combinations and disposals of subsidiaries	1,171	1,798	477	469	(248)	3,666

Subsidiaries acquired in 2022 consist of 3byggetilbud.dk A/S.

Currency rates used when converting		First quarter
profit or loss	2023	2022	2022
Swedish krona (SEK)	0.9803	0.9480	0.9506
Danish krone (DKK)	1.4753	1.3349	1.3579
Euro (EUR)	10.9807	9.9327	10.1020

*Brands that Schibsted owns or has invested in

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