Vend Marketplaces ASA

Quarterly Report • Feb 10, 2023

Interim Report Q4 2022

January – December

THE QUARTER IN BRIEF

Improved EBITDA and robust financial position

In a more challenging market caused by macroeconomic developments, underlying ¹ Group revenues increased by 3 per cent compared to Q4 last year. In this context, I am happy to report that Group EBITDA ended 3 per cent above Q4 last year at NOK 651 million, breaking the downward trend seen over the last quarters. The positive EBITDA development was driven by great efforts in all our business areas.

Driven by double-digit growth in classifieds revenues, Nordic Marketplaces delivered underlying ² revenue growth of 6 per cent in Q4. The revenue growth was driven by Real estate, Motors and the transactional Generalist offering 'Fiks Ferdig' in Norway, while Jobs and advertising revenues declined due to market headwinds. EBITDA ended at NOK 430 million, 1 per cent down from last year driven by Marketplaces Norway. This was a result of a change in revenue mix, and continued investments to drive new business models.

Our News Media operations faced a more challenging advertising market, particularly within print. Driven by resilient subscription revenues, underlying² revenues were still in line with last year. EBITDA margin ended at 9 per cent, up from the previous quarter due to tighter cost control which will tighten further going forward. As announced on 24 January, News Media has started implementing cost measures, targeting gross cost savings of NOK 500 million over the next two years, in order to improve profitability and to bring its EBITDA margin back to the target range of 10-12 per cent in 2024.

Financial Services & Ventures delivered strong profitability, with EBITDA at NOK 109 million, driven by good revenue growth and cost control. In particular Prisjakt and MittAnbud reported improved profitability, and Lendo continued to deliver double-digit revenue growth due to its Swedish and Norwegian operations.

As part of the more focused capital allocation strategy within the Group, Lendo on 31 January announced that it shifts its strategic focus, accelerating its market leading position in the Scandinavian markets, and consequently plans to cease operations in Finland, Spain, Portugal and Italy. The strategic review of Lendo will continue in parallel.

Further, in Q4 we sold down 2 per cent of our Adevinta holding and entered into a total return swap (TRS) agreement for another 3 per cent. This enabled us to increase our financial

capacity to reduce our financial leverage, and to initiate a share buy back programme which we see as value creative in the present market environment. Using a TRS enabled us to reduce our financial leverage while we maintain exposure to Adevinta's share price development, showcasing our support of the strategy and further value creation potential by the company.

Finally, the Board will propose to pay a dividend of NOK 2.00 per share for 2022, in line with last year and our dividend policy.

To sum up, we have navigated the rough seas of 2022 solidly and have used Q4 to further adapt to the changes around us, focusing on bringing costs down and adjusting our capital allocation. I am now looking forward to a year where we will double down on succeeding with the verticalisation of Nordic Marketplaces, ensure robustness and continued digitalisation of our world-class News Media operations, and manage and grow our investments with focus on value creation.

• Kristin Skogen Lund, CEO

¹ Foreign exchange neutral basis and adjusted for sold operations

² Foreign exchange neutral basis

This Quarter's Highlights

• Group: Underlying¹ revenue growth of 3 per cent, EBITDA at NOK 651 million.
• Nordic Marketplaces: 6 per cent underlying² revenue growth, driven by double-digit revenue growth in classifieds while advertising was down. EBITDA at NOK 430 million, 1 per cent down from last year, driven by Marketplaces Norway while the remaining countries increased EBITDA year-on-year.
• News Media: Underlying² revenues in line with last year as resilient subscription revenues curbed the decline in advertising. EBITDA margin of 9 per cent, down year-on-year but up quarter-on-quarter due to tighter cost control. Gross cost reductions of NOK 500 million over the next two years announced on 24 January.
• eCommerce & Distribution: Returned to revenue growth and positive EBITDA, driven by higher B2C and C2C volumes in the parcel delivery business.
• Financial Services & Ventures: Strong profitability driven by good revenue growth and cost control. Lendo continued its strong growth momentum, growing underlying¹ revenues 16 per cent, and announced plans to cease operations in Finland, Spain, Portugal and Italy. Improved profitability in Prisjakt and MittAnbud.
• Dividend of NOK 2.00 per share will be proposed for 2022.

	Fourth quarter			Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Schibsted Group
Operating revenues	3,988	3,936	1%	15,272	14,623	4%
- of which digital	2,821	2,635	7%	10,563	9,557	11%
EBITDA	651	634	3%	2,406	2,740	(12%)
EBITDA margin	16%	16%		16%	19%
Operating revenues per segment
Nordic Marketplaces	1,203	1,131	6%	4,856	4,176	16%
News Media	2,019	2,055	(2%)	7,608	7,525	1%
eCommerce & Distribution	506	491	3%	1,822	1,913	(5%)
Financial Services & Ventures	562	526	7%	2,035	2,026	0%
EBITDA per segment
Nordic Marketplaces	430	434	(1%)	1,908	1,782	7%
News Media	180	229	(21%)	531	931	(43%)
eCommerce & Distribution	4	(2)	>100%	(50)	26	(>100%)
Financial Services & Ventures	109	53	>100%	281	249	13%
Other/Headquarters	(72)	(80)	11%	(263)	(247)	(7%)

Key figures

Certain shared services functions previously reported within News Media are now reported within Other/HQ. Comparable information is restated. Please see note 3 for further details.

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

Operating segments

NORDIC MARKETPLACES

	Fourth quarter			Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Classifieds revenues	983	884	11%	3,967	3,311	20%
Advertising revenues	136	158	(14%)	538	537	0%
Other revenues	84	89	(6%)	352	327	7%
Operating revenues	1,203	1,131	6%	4,856	4,176	16%
EBITDA	430	434	(1%)	1,908	1,782	7%
EBITDA margin	36%	38%		39%	43%

Driven by double-digit growth in classifieds revenues, Nordic Marketplaces delivered underlying revenue growth of 6 per cent in Q4. This was primarily driven by Marketplaces Norway, but revenues increased in all markets compared to last year.

Real estate and Motor verticals and the transactional Generalist offering 'Fiks Ferdig' in Norway were the main

drivers, partly offset by the Job vertical and advertising revenues that were affected by a challenging macroeconomic environment.

EBITDA decreased compared to Q4 last year due to a change in revenue mix and continued investments in product and technology to drive new business models.

Marketplaces Norway

	Fourth quarter		Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Classifieds revenues	609	525	16%	2,518	2,015	25%
Advertising revenues	58	66	(13%)	234	237	(1%)
Other revenues	65	61	7%	263	251	5%
Operating revenues	732	653	12%	3,016	2,503	20%
EBITDA	318	327	(3%)	1,558	1,316	18%
EBITDA margin	44%	50%		52%	53%

Marketplaces Norway delivered yet again a strong quarter with 12 per cent revenue growth compared to Q4 last year. The growth was primarily driven by the Real estate and Motor verticals. Real estate experienced higher ARPA and volumes, and the Motor vertical had a solid volume growth in cars for sale supported by continued growth in Nettbil.

Revenues in the Job vertical declined 7 per cent compared to last year, for the first time in a long time. The decline was driven by volume due to a more challenging macroeconomic environment combined with strong comparables last year.

The Generalist vertical saw good progress with their transactional offering "Fiks Ferdig", delivering almost 480 000 transactions in Q4, ending the year with nearly 750 000 transactions in 2022.

Advertising revenues were down 13 per cent compared to the same period last year, due to strong comparables and a challenging macroeconomic environment.

EBITDA margin landed at 44 per cent, which was a decline compared to last year mainly due to a shift in revenue mix, where we saw a decrease in the higher margin Jobs business and an increase in the low margin transactional business for Generalist. In addition, the costs were higher than last year primarily due to increased number of FTE's to drive further transactional product developments and the verticalization of Nordic Marketplaces.

Marketplaces Sweden

	Fourth quarter		Year to date
(SEK million)	2022	2021	Change	2022	2021	Change
Classifieds revenues	226	216	5%	898	879	2%
Advertising revenues	45	51	(12%)	182	185	(2%)
Other revenues	6	4	38%	18	15	18%
Operating revenues	277	271	2%	1,098	1,080	2%
EBITDA	110	108	2%	413	457	(10%)
EBITDA margin	40%	40%		38%	42%

Revenues in Marketplaces Sweden ended 2 per cent above last year.

The main growth driver this quarter was the Motor vertical with a 12 per cent year-on-year increase in the quarter, driven by higher ARPA from professionals.

The Job vertical had a flat development in the quarter, mainly due to stronger comparables and a slowdown in the market.

C2C Generalist revenues declined compared to the same period last year, primarily driven by the removal of ad insertion fees at the end of May. 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.

Stable EBITDA margin compared to last year, where revenue growth in the Motor vertical combined with good cost control balanced out the effects from the removal of ad insertion fees and lower advertising revenues and continued investments in product and technology to drive new business models.

Marketplaces Finland

	Fourth quarter		Year to date
(EUR million)	2022	2021	Change	2022	2021	Change
Classifieds revenues	6.4	6.5	(1%)	25.5	24.7	3%
Advertising revenues	1.7	2.0	(14%)	6.8	7.6	(11%)
Other revenues	1.4	1.1	33%	5.3	4.5	17%
Operating revenues	9.5	9.5	0%	37.5	36.8	2%
EBITDA	1.7	0.0	>100%	2.7	3.3	(18%)
EBITDA margin	18%	0%		7%	9%

Revenues in Marketplaces Finland were in line with last year. Real estate, Motors and Generalist revenues increased in the quarter, all driven by volume combined with improved ARPA in the Motor vertical.

On the other hand, market headwinds affected the Job vertical and advertising revenues negatively in the quarter, and resulted in negative revenue growth compared to last year.

EBITDA improved compared to last quarter and last year due to tight cost control.

End of December Schibsted acquired 79% of the Finnish consumer-to-business used car auction marketplace AutoVex. By becoming a majority owner in AutoVex Schibsted continues to invest further into the growing Finnish market, and further expand our portfolio of next generation marketplaces in the Motor vertical.

Marketplaces Denmark

	Fourth quarter		Year to date
(DKK million)	2022	2021	Change	2022	2021	Change
Classifieds revenues	66	61	8%	247	121	>100%
Advertising revenues	12	16	(25%)	46	28	67%
Other revenues	16	15	9%	59	26	>100%
Operating revenues	94	92	3%	351	175	>100%
EBITDA	23	22	7%	69	41	70%
EBITDA margin	25%	24%		20%	23%

Revenues in Marketplaces Denmark grew 3 per cent in the quarter, mainly driven by price increases and improved volumes on Bilbasen. Also, the Generalist vertical increased compared to last year driven by higher volumes for traditional classifieds and transactional services.

Advertising revenues declined compared to the same period last year due to the macroeconomic situation. EBITDA margin improved both compared to previous quarter and to last year driven by increased revenues and tight cost control.

NEWS MEDIA

		Fourth quarter		Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Advertising revenues	789	842	(6%)	2,811	2,797	0%
-of which digital	625	640	(2%)	2,186	2,113	3%
Subscription revenues	783	734	7%	3,029	2,851	6%
-of which digital	413	350	18%	1,548	1,313	18%
Casual sales	229	264	(13%)	966	1,107	(13%)
Other revenues	218	215	1%	802	770	4%
Operating revenues	2,019	2,055	(2%)	7,608	7,525	1%
Personnel expenses	(680)	(696)	(2%)	(2,645)	(2,502)	6%
Other expenses	(1,159)	(1,130)	2%	(4,431)	(4,093)	8%
Operating expenses	(1,839)	(1,826)	1%	(7,077)	(6,594)	7%
EBITDA	180	229	(21%)	531	931	(43%)
EBITDA margin	9%	11%		7%	12%

News Media revenues were affected by a challenging advertising market, in particular print advertising. The decline in advertising revenues was curbed by continued growth in digital subscriptions, and the foreign exchange neutral revenue growth was flat compared to last year.

The cost levels saw positive effects from savings implemented in the second half of 2022, resulting in lower cost growth compared to previous quarters. This is despite significantly higher paper, electricity and input factor prices for print products that has elevated the cost base in 2022.

EBITDA margin increased compared to the previous quarter due to tighter cost control, while declined compared to a strong quarter last year, due to lower revenues and higher cost base.

Split revenue per brand	Fourth quarter		Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
VG	617	599	3%	2,208	2,052	8%
Aftonbladet	395	423	(7%)	1,510	1,600	(6%)
Subscription Newspapers	825	850	(3%)	3,159	3,199	(1%)
Other	183	183	(0%)	731	674	8%
Operating revenues	2,019	2,055	(2%)	7,608	7,525	1%

VG

VG revenues grew 3 per cent in the quarter. The growth was driven by both digital subscription and digital advertising revenues, although the growth in advertising revenues slowed down during the quarter.

Aftonbladet

Aftonbladet revenues declined by 3 per cent on a foreign exchange neutral basis compared to Q4 last year. The decrease was driven by advertising revenues due to challenging market conditions, partly offset by growth in digital subscriptions.

Subscription Newspapers

Revenues in our Subscription Newspapers declined 2 per cent compared to last year on a foreign exchange neutral basis. The growth in digital subscriptions was offset by the decline in the print business, both within advertising and subscriptions.

Other

Other consists of New Models (for example PodMe, TV.nu, Klart.se and Omni), Schibsted's printing facilities and centralised functions in Norway and Sweden. Revenues increased by 1 per cent on a foreign exchange neutral basis compared to Q4 last year, driven by a solid growth in PodMe partly offset by advertising-driven brands.

ECOMMERCE & DISTRIBUTION

	Fourth quarter			Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Operating revenues	506	491	3%	1,822	1,913	(5%)
EBITDA	4	(2)	>100%	(50)	26	(>100%)
EBITDA margin	1%	-0%		-3%	1%

Distribution consists of "Legacy" newspaper distribution and "New Business" (mainly HeltHjem Netthandel and Morgenlevering). After a year with revenue decline due to the slowdown in the e-commerce industry, total revenues grew 3 per cent in the fourth quarter.

The growth is driven by Helthjem Netthandel that grew 22 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".

On the other hand, Morgenlevering saw a continued decline of 33 per cent driven by lower volumes. The decline is driven by macroeconomic trends and inflation, in addition to exceptionally high numbers last year as society was closed down due to COVID-19 restrictions.

EBITDA was positive in the quarter, which is an improvement both compared to last quarter and last year, despite higher costs primarily due to increased fuel prices.

FINANCIAL SERVICES & VENTURES

	Fourth quarter			Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Operating revenues	562	526	7%	2,035	2,026	0%
EBITDA	109	53	>100%	281	249	13%
EBITDA margin	19%	10%		14%	12%

Financial Services & Ventures consist of Lendo, Prisjakt and other digital services like Compricer, MittAnbud and Servicefinder in addition to Schibsted Growth's headquarters.

Financial Services & Ventures revenues grew 14 per cent on a foreign exchange neutral basis and with Q4 last year adjusted for sold operations Mötesplatsen and Let's Deal (Kundkraft was sold in Q3 2021). The growth is driven by continued growth momentum in Lendo. In addition, Prisjakt and MittAnbud both had a strong quarter.

EBITDA margin increased to 19 per cent driven by revenue growth in all main brands, whilst maintaining stringent cost control.

Lendo

	Fourth quarter			Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Operating revenues	295	262	13%	1,187	1,042	14%
EBITDA	36	44	(19%)	179	197	(9%)
EBITDA margin	12%	17%		15%	19%

Lendo continued its strong growth momentum with a foreign exchange neutral revenue growth of 16 per cent in Q4 compared to last year, driven by strong performances in Sweden and Norway. The growth was primarily driven by continued strong growth in inflow of applications in both countries, and revenues from the improved credit card offering launched in Norway in Q1 this year.

EBITDA margin decreased compared to last year, due to increased marketing spend as well as development of new product verticals.

Prisjakt

	Fourth quarter			Year to date
(NOK million)	2022	2021	Change	2022	2021	Change
Operating revenues	141	124	14%	382	383	(0%)
EBITDA	59	36	65%	110	109	0%
EBITDA margin	42%	29%		29%	29%

Revenues in Prisjakt grew 17 per cent on a foreign exchange neutral basis, driven by higher earnings-per-click due to pricing.

The improved revenues, combined with stringent cost control led to an EBITDA increase compared to last year and Q3, and a 42 per cent margin.

OTHER/HEADQUARTERS

Other and Headquarters had an EBITDA of NOK -72 million in the fourth quarter against NOK -80 million in the same period last year. EBITDA losses have fluctuated between the quarters through 2022, but full year EBITDA losses in 2022 were 7 per cent higher than last year, primarily due to establishment of the new CIO function and costs related to implementation of a new group wide accounting system finalised in Q4 this year. The periodic variations are primarily driven by phasing effects caused by our invoicing model for central product and technology services to our business areas.

Outlook

While Russia's invasion of Ukraine led to a significant dislocation in the financial markets during Q1, global macroeconomic risks have further increased throughout the year on the back of higher inflation, rate hikes by central banks and mounting recession fears. 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 are historically more resilient.

While visibility is limited in the shorter term, we remain confident in the growth potential for Nordic Marketplaces and reiterate our medium- to long-term target to grow annual revenues by 8-12 per cent for this segment. Going forward, we expect growth to be driven primarily by three factors.

First, by leveraging our Nordic market positions driven by the development of better products and value-added services for our traditional online classifieds offering. Second, by creating new revenue streams from transactional services with a focus on the Generalist business and the Motor vertical, and third, by expanding and consolidating in the Nordics.

With effect from January 2023, Nordic Marketplaces has transitioned from a country- to a vertical-based operating model to further strengthen the execution of our high growth ambitions, particularly for new transactional models, and to strengthen operational leverage across verticals in the Nordics. The rationale and consequences of this change will be presented at our Capital Markets Day on 28 March.

Looking at Nettbil in Norway, which is one of our initiatives for transactional models within Motors, we were informed at the end of June that the Court of Appeal admitted the appeal by the Norwegian Competition Authority for consideration. The case was heard in mid-January 2023, and we expect a verdict by the end of Q1 2023.

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 longterm 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. The acquisition and scaling of PodMe has strengthened our position within podcasts, which is one of several content initiatives to grow our subscriptions business. The overall ambition is to double our pure digital subscription revenues from NOK 1.3 billion in 2021 to NOK 2.6 billion by the end of 2025.

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 margin will be below that range in 2023. This is due to significantly higher costs for our print products as a result of higher paper, electricity and input factor prices, and potentially weakening revenue trends from print products in particular but also from digital advertising in the short term, given the increased macroeconomic risks. To return to the targeted margin range by 2024, a two-year 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 eCommerce & Distribution, we expect continued revenue growth from 2023 onwards. However, given the weak development in 2022, we continue working on the cost base to address EBITDA losses in this segment going forward.

Lendo announced on 31 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. The initiated strategic review with the aim to maximise the company's potential and value creation, continues in parallel.

In light of the current macroeconomic environment and tight financing markets, an attractive exit for Prisjakt has become less likely in the shorter term.

Group overview

Comments on the Group's result

Schibsted's consolidated operating revenues in Q4 2022 totalled NOK 3,988 million, up 1 per cent compared to last year. The Group's gross operating profit (EBITDA) amounted to NOK 651 million, equivalent to an increase of 3 per cent. Please see information under Operating segments above for further details on the Group's performance in Q4 2022.

Depreciation and amortisation were NOK -292 million (NOK -262 million), mainly related to software, licences, and right-of-use assets (leasing).

Other expenses in Q4 2022 were NOK -52 million (NOK -70 million) and include restructuring costs related to the transition to a vertical-based operating model in Nordic Marketplaces and cost related to the integration of the operations in Nordic Marketplaces Denmark. Other expenses in Q4 2021 were mainly transaction cost related to the same acquisition, as well as a NOK -34 million loss on the sale of Let's deal AB.

Operating profit in Q4 2022 amounted to NOK 285 million (NOK 289 million).

With effect from 1 January 2022 Share of profit (loss) of joint ventures and associates, impairment and gains (losses) related to disposals of joint ventures and associates are presented below Operating profit (loss). Comparable figures in the income statement and related note disclosures have been restated.

Schibsted's share of profit (loss) from joint ventures and associates totalled NOK -270 million (NOK -146 million) which includes NOK -207 million related to Schibsted's share of Adevinta's result for the third quarter of 2022 after adjusting for fair value differences and amortisation of excess values.

Impairment loss on joint ventures and associates in Q4 2022 was NOK 424 million (NOK -19,998 million) and includes a partial reversal of previous write-down of the investment in Adevinta to reflect the market value at 31 December 2022. The impairment loss in Q4 2021 consisted mainly of a write-down of the investment in Adevinta following a decline in the share price.

Gains (losses) on disposal of joint ventures and associates in Q4 2022 includes a gain from sale of 5 per cent of Adevinta of NOK 686 million and a loss from sale of shares in Bookis of NOK -35 million.

Financial expenses in Q4 2022 include fair value adjustments of NOK -438 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 -72 million (13 per cent) compared to NOK -57 million (0 per cent) in Q4 2021. The reported tax rate was affected by a non-tax deductible impairment loss related to Adevinta included in Profit (loss) before tax. Please also see Note 7 for the relationship between Profit (loss) before tax and the reported tax expense.

Profit (loss) from discontinued operations of NOK -24 million in Q4 2022 relates to a clarification of the VAT treatment for transaction costs related to loss of control of Adevinta in 2021.

Basic earnings per share in Q4 2022 was NOK 1.94 compared to NOK -84.86 in Q4 2021. Basic earnings per share from continuing operations in Q4 2022 was NOK 2.05 compared to NOK -84.85 in Q4 2021. Adjusted earnings per share from continuing operations in Q4 2022 was NOK -0.45 compared to NOK 0.35 in Q4 2021.

Cash flow and financial position

Net cash flow from operating activities (continuing operations) was NOK 715 million in Q4 2022, compared to NOK 665 million in the same period in 2021. The increase is primarily related to improved gross operating profit and working capital development partly offset by increased tax payments.

Net cash inflow from investing activities (continuing operations) was NOK 3,993 million in Q4 2022, compared to an outflow of NOK 642 million in the same period in 2021. The cash inflow in Q4 includes NOK 4,539 million from sale of shares in Adevinta.

Net cash outflow from financing activities (continuing operations) was NOK 1,255 million in Q4 2022, compared to an inflow of NOK 384 million in the same period in 2021. Cash outflows in Q4 2022 are primarily related to repayment of interest-bearing debt and repurchase of own shares following the sale of shares in Adevinta.

The carrying amount of the Group's assets decreased by NOK 20,481 million to NOK 43,708 million during 2022. The decrease was mainly related to impairment of the investment in Adevinta. In May, Schibsted signed a new rental agreement for the Stockholm office for the period 2024 to 2033, which led to an increase in right-of-use asset and lease liability by NOK 682 million. Schibsted's equity ratio is 66 per cent at the end of 2022, compared to 79 per cent at the end of 2021.

Schibsted has a public rating of BBB/Stable from Scope Ratings which confirms Schibsted as a solid Investment Grade company. Several refinancing activities have been completed in 2022. In March Schibsted successfully issued new bonds totalling NOK 1 billion in the domestic bond market; a 5.5 year bond of NOK 600 million with pricing NIBOR 3 months + 120 bps and a 7 year bond of NOK 400 million with fixed interest rate of 3.95 per cent. In May, Schibsted signed a new 2+1 year term loan agreement of NOK 2 billion with the core bank group. The bridge loan (NOK 2.8 billion) used to finance the acquisition in Denmark (Q3 2021) has been gradually repaid during 2022 and was finally repaid in December 2022. The consent from our banks for a temporary waiver of our financial covenant was terminated as planned on the final repayment of the bridge loan. In December, Schibsted also repaid two expiring bonds of totally NOK 400 million and purchased NOK 251 million of its own bond (FRN) maturing in June 2023.

Schibsted has a revolving credit facility of EUR 300 million. The facility has been extended to July 2027 and there is still a 1-year

extension option left. The facility is not drawn and secures a strong liquidity buffer going forward.

At the end of November, Schibsted ASA entered into a total return swap with Danske Bank involving a sale of 3 per cent of the total outstanding shares in Adevinta at a price of NOK 77.25 per share, but where Schibsted keeps the economic exposure to the Adevinta share price development until termination or expiry of the swap. The proceeds from the total return swap were used to reduce debt leverage. Schibsted also sold 2 per cent of the total outstanding shares in Adevinta through an accelerated block sale at a price of NOK 70 per share. The proceeds from the share sale will be used to buy back up to 4 per cent of the total amount of outstanding shares in Schibsted ASA (buying both A- and B-shares with a split of 45/55 respectively) for an amount of up to NOK 1.7 billion. The buyback programme was launched in December and will be completed during 2023.

Schibsted now owns 28 per cent of Adevinta. The current pricing of these shares is well below our target price. Still, this asset contributes to a very solid financial position for Schibsted. Lendo is also being considered for sale.

The cash balance at the end of December 2022 was NOK 3,738 million giving a net interest-bearing debt of NOK 2,616 million. Including the undrawn facility, the liquidity reserve amounts to NOK 6,892 million.

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

Condensed consolidated financial statements

	Fourth quarter		Year
(NOK million)	2022	2021	2022	2021
Operating revenues	3,988	3,936	15,272	14,623
Raw materials and finished goods	(139)	(141)	(549)	(531)
Personnel expenses	(1,554)	(1,527)	(5,929)	(5,486)
Other operating expenses	(1,645)	(1,634)	(6,387)	(5,865)
Gross operating profit (loss)	651	634	2,406	2,740
Depreciation and amortisation	(292)	(262)	(1,117)	(984)
Impairment loss	(23)	(14)	(31)	(119)
Other income	1	1	13	181
Other expenses	(52)	(70)	(173)	(172)
Operating profit (loss)	285	289	1,099	1,647
Share of profit (loss) of joint ventures and associates	(270)	(146)	(482)	(193)
Impairment loss on joint ventures and associates	424	(19,998)	(22,823)	(20,000)
Gains (losses) on disposal of joint ventures and associates	657	131	675	148
Financial income	17	18	117	28
Financial expenses	(553)	(78)	(830)	(248)
Profit (loss) before taxes	559	(19,782)	(22,244)	(18,618)
Taxes	(72)	(57)	(254)	(280)
Profit (loss) from continuing operations	487	(19,839)	(22,497)	(18,898)
Profit (loss) from discontinued operations	(24)	(2)	(24)	59,965
Profit (loss)	464	(19,841)	(22,521)	41,066
Profit (loss) attributable to:
Non-controlling interests	9	18	60	(274)
Owners of the parent	454	(19,859)	(22,582)	41,341
Earnings per share in NOK:
Basic	1.94	(84.86)	(96.53)	176.70
Diluted	1.94	(84.86)	(96.53)	176.70
Earnings per share from continuing operations in NOK:
Basic	2.05	(84.85)	(96.43)	(81.15)
Diluted	2.04	(84.85)	(96.43)	(81.15)

Income statement

Statement of comprehensive income

	Fourth quarter		Year
(NOK million)	2022	2021	2022	2021
Profit (loss)	464	(19,841)	(22,521)	41,066
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension liabilities	48	148	(77)	(31)
Cash flow hedges	-	-	-	672
Change in fair value of equity instruments	10	17	16	16
Share of other comprehensive income of joint ventures and associates	-	4	50	4
Income tax relating to items that will not be reclassified	(11)	(33)	17	(14)
Items that may be reclassified to profit or loss:
Foreign exchange differences	(340)	(1,318)	1,391	(1,703)
Accumulated exchange differences reclassified to profit or loss on	3	-	3	587
disposal of foreign operation
Cash flow hedges and hedges of net investments in foreign operations	3	17	(16)	149
Share of other comprehensive income of joint ventures and associates	106	(48)	604	(43)
Income tax relating to items that may be reclassified	(5)	(8)	(1)	(40)
Other comprehensive income	(186)	(1,221)	1,988	(403)
Total comprehensive income	278	(21,061)	(20,533)	40,663
Total comprehensive income attributable to:
Non-controlling interests	8	17	59	(53)
Owners of the parent	270	(21,078)	(20,592)	40,716

Statement of financial position

(NOK million)	31 Dec 2022	31 Dec 2021
Intangible assets	10,389	9,313
Property, plant and equipment	535	520
Right-of-use assets	1,796	1,355
Investments in joint ventures and associates	23,523	48,520
Deferred tax assets	584	621
Other non-current assets	937	736
Non-current assets	37,763	61,065
Contract assets	167	210
Trade receivables and other current assets	2,040	1,806
Cash and cash equivalents	3,738	1,108
Current assets	5,945	3,125
Total assets	43,708	64,189
Paid-in equity	7,095	7,060
Other equity	21,518	43,271
Equity attributable to owners of the parent	28,613	50,332
Non-controlling interests	188	201
Equity	28,801	50,533
Deferred tax liabilities	502	576
Pension liabilities	1,145	1,090
Non-current interest-bearing loans and borrowings	4,630	3,592
Non-current lease liabilities	1,755	1,237
Other non-current liabilities	588	340
Non-current liabilities	8,620	6,835
Current interest-bearing loans and borrowings	1,724	3,274
Income tax payable	232	154
Current lease liabilities	325	306
Contract liabilities	574	553
Other current liabilities	3,432	2,534
Current liabilities	6,288	6,821
Total equity and liabilities	43,708	64,189

Statement of cash flows

The statement of cash flows includes cash flows from discontinued operations in 2021. For detailed information on cash flows from continuing operations, see Note 8.

	Fourth quarter		Year
(NOK million)	2022	2021	2022	2021
Profit (loss) before taxes from continuing operations	559	(19,782)	(22,244)	(18,618)
Profit (loss) before taxes from discontinued operations	-	-	-	(134)
Depreciation, amortisation and impairment losses	(108)	20,275	23,971	21,103
Net interest expense	76	54	267	347
Net effect pension liabilities	11	(14)	(22)	(85)
Share of loss (profit) of joint ventures and associates	270	146	482	193
Dividends received from joint ventures and associates	1	-	56	16
Interest received	16	2	24	9
Interest paid	(82)	(57)	(266)	(414)
Taxes paid	(54)	(8)	(260)	(424)
Sales losses (gains) on non-current assets and other non-cash losses (gains)	(203)	(95)	(233)	309
Non-cash items and change in working capital and provisions	229	145	(90)	195
Net cash flow from operating activities	715	665	1,684	2,498
-of which from continuing operations	715	665	1,684	2,157
-of which from discontinued operations	-	-	-	341
Development and purchase of intangible assets and property, plant and equipment	(282)	(241)	(1,048)	(951)
Acquisition of subsidiaries, net of cash acquired	(189)	(71)	(451)	(3,048)
Investment in other shares	(78)	(389)	(438)	(626)
Proceeds from sale of intangible assets and property, plant and	1	-	3	15
equipment
Proceeds from sale of subsidiaries, net of cash sold	1	6	-	(1,244)
Sale of other shares	4,548	64	4,548	101
Net change in other investments	(7)	(14)	1	(170)
Net cash flow from investing activities	3,993	(645)	2,616	(5,923)
-of which from continuing operations	3,993	(642)	2,616	(4,425)
-of which from discontinued operations	-	(3)	-	(1,499)
New interest-bearing loans and borrowings	-	1,000	3,158	4,300
Repayment of interest-bearing loans and borrowings	(985)	(539)	(3,669)	(1,179)
Payment of principal portion of lease liabilities	(66)	(85)	(333)	(419)
Change in ownership interests in subsidiaries	-	-	(33)	(228)
Net sale (purchase) of treasury shares	(203)	10	(239)	35
Dividends paid to owners of the parent	-	-	(468)	(468)
Dividends paid to non-controlling interests	(2)	(1)	(88)	(131)
Net cash flow from financing activities	(1,255)	384	(1,672)	1,909
-of which from continuing operations	(1,255)	384	(1,672)	2,301
-of which from discontinued operations	-	-	-	(392)
Effects of exchange rate changes on cash and cash equivalents	(2)	(4)	2	(54)
Net increase (decrease) in cash and cash equivalents	3,451	399	2,630	(1,570)
Cash and cash equivalents at start of period	287	709	1,108	2,678
Cash and cash equivalents at end of period	3,738	1,108	3,738	1,108

Statement of changes in equity

	Attributable	Non
	to owners of	controlling
(NOK million)	the parent	interests	Equity
Equity as at 31 Dec 2020	10,178	5,675	15,853
Profit (loss) for the period	41,341	(274)	41,066
Other comprehensive income	(625)	221	(403)
Total comprehensive income	40,716	(53)	40,663
Share-based payment	33	(8)	25
Dividends paid to owners of the parent	(468)	-	(468)
Dividends paid to non-controlling interests	16	(140)	(124)
Change in treasury shares	35	-	35
Business combinations	20	67	87
Loss of control of subsidiaries	-	(5,249)	(5,249)
Changes in ownership of subsidiaries that do not result in a loss of control	(138)	(91)	(229)
Share of transactions with the owners of joint ventures and associates	(60)	-	(60)
Equity as at 31 Dec 2021	50,332	201	50,533
Profit (loss) for the period	(22,582)	60	(22,521)
Other comprehensive income	1,989	(2)	1,988
Total comprehensive income	(20,592)	59	(20,533)
Share-based payment	35	-	35
Dividends paid to owners of the parent	(468)	-	(468)
Dividends paid to non-controlling interests	22	(88)	(66)
Change in treasury shares	(274)	-	(274)
Business combinations	-	14	14
Changes in ownership of subsidiaries that do not result in a loss of control	(443)	1	(442)
Share of transactions with the owners of joint ventures and associates	2	-	2
Equity as at 31 Dec 2022	28,613	188	28,801

Notes

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

The condensed consolidated interim financial statements comprise the Group and the Group's interests in joint ventures and associates. The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting.

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 Group's annual financial statements for 2021.

With effect from 1 January 2022 Share of profit (loss) of joint ventures and associates is presented below Operating profit (loss). Impairment losses and subsequent reversals, and gains and losses on disposal of joint ventures and associates should be presented adjacent to Share of profit (loss) of joint ventures and associates and are therefore also presented below Operating profit (loss). Comparable figures in the income statement and related note disclosures have been restated.

Note 2 - Changes in the composition of the group

Business combinations

During 2022, Schibsted invested NOK 451 million related to business combinations. The amount comprises cash consideration transferred reduced by cash and cash equivalents of the acquiree.

In March 2022, Schibsted acquired 100 per cent of the shares in 3byggetilbud.dk A/S operating Denmark's largest online marketplace for skilled trades. In May 2022, Schibsted acquired 100 per cent of the shares of Mybanker Group A/S. Mybanker is an online service for comparing bank and mortgage offerings providing Lendo with a strengthened position in Denmark and a broader offering of financial services in the Nordic and European markets. In December 2022, Schibsted acquired 79.1 per cent of the shares of Alltvex OY operating AutoVex, the leading used car C2B auction marketplace in Finland. Schibsted has also been involved in other less significant business combinations.

The table summarises the consideration transferred and the amounts recognised for assets acquired and liabilities assumed in the business combinations.

The amounts allocated in relation to AutoVex are provisional as valuations of assets acquired are not finalised.

Other changes in the composition of the Group in 2022

Schibsted has in 2022 paid NOK 33 million of contingent consideration related to prior years' increases in ownership interests in subsidiaries.

In December 2022, Schibsted reduced its ownership interest in the associate Adevinta ASA by approximately 5.0 per cent to 28.4 per cent, see note 5 Joint ventures and associates.

	Total
Consideration:
Cash	507
Deferred consideration	33
Total	541
Amounts for assets and liabilities recognised:
Intangible assets	103
Other non-current assets	24
Trade receivables and other current assets	30
Cash and cash equivalents	57
Deferred tax liabilities	(20)
Other non-current liabilities	(17)
Current liabilities	(46)
Total identifiable net assets	130
Non-controlling interests	(14)
Goodwill	425
Total	541

In 2020, the Norwegian Competition Authority (NCA) resolved to prohibit the business combination between Schibsted and Nettbil, which was acquired in 2019, and ordered Schibsted to sell its shares in Nettbil. Schibsted appealed the decision to the Norwegian Competition Tribunal, and later to the Court of Appeal. In Q1 2022 the Court of Appeal ruled to overturn the decision from the Norwegian Competition Tribunal, thereby voiding also the decision of the NCA. During Q2 2022 NCA appealed the decision to the Supreme Court. The parties met in court in January 2023 and the judgement is expected before the end of Q1 2023.

Note 3 - Operating segments and disaggregation of revenues

Schibsted has adjusted the reporting structure effective 1 January 2022. The main change is that costs from centralised group-related functions which were previously reported in the News Media segment are now reported in the Other/Headquarters segment. Reportable operating segments were adjusted to reflect the internal reporting and monitoring of the businesses. Operating segments and disaggregation of revenues for 2021 were restated retrospectively to give comparable information.

Schibsted's operating segments are Nordic Marketplaces, News Media, eCommerce & Distribution and Financial Services & Ventures.

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 and Qasa.

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.

eCommerce & Distribution 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.

Financial Services & Ventures 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).

			eCommerce	Financial	Other /
	Nordic	News	&	Services &	Head	Elimina
Fourth quarter 2022	Marketplaces	Media	Distribution	Ventures	-quarters	-tions	Schibsted
Operating revenues	1,203	2,019	506	562	248	(550)	3,988
-of which internal	28	91	178	13	240	(550)	-
Gross operating profit (loss)	430	180	4	109	(72)	-	651
Operating profit (loss)	305	41	(11)	77	(128)	-	285
Fourth quarter 2021
Operating revenues	1,131	2,055	491	526	248	(515)	3,936
-of which internal	25	110	135	14	231	(515)	-
Gross operating profit (loss)	434	229	(2)	53	(80)	-	634
Operating profit (loss)	318	103	(17)	(11)	(104)	-	289
Year 2022
Operating revenues	4,856	7,608	1,822	2,035	982	(2,032)	15,272
-of which internal	110	362	573	49	938	(2,032)	-
Gross operating profit (loss)	1,908	531	(50)	281	(263)	-	2,406
Operating profit (loss)	1,469	(7)	(109)	154	(407)	-	1,099
Year 2021
Operating revenues	4,176	7,525	1,913	2,026	904	(1,921)	14,623
-of which internal	96	400	524	43	858	(1,921)	-
Gross operating profit (loss)	1,782	931	26	249	(247)	-	2,740
Operating profit (loss)	1,422	455	(32)	166	(364)	-	1,647

Disaggregation of revenues:

			eCommerce	Financial	Other /
Fourth quarter 2022	Nordic Marketplaces	News Media	& Distribution	Services & Ventures	Head -quarters	Elimina -tions	Schibsted
Classifieds revenues	983	-	-	-	-	-	983
Advertising revenues	136	789	-	44	-	(40)	929
-of which digital	136	625	-	44	-	(40)	765
Subscription revenues	-	783	-	73	-	(2)	854
-of which digital	-	413	-	73	-	(2)	484
Casual sales	-	229	-	-	-	-	229
Other revenues	81	183	506	445	225	(467)	972
Revenues from contracts with	1,200	1,984	506	562	225	(509)	3,967
customers
Revenues from lease contracts,	3	36	1	-	23	(40)	22
government grants and others
Operating revenues	1,203	2,019	506	562	248	(550)	3,988
Fourth quarter 2021
Classifieds revenues	884	-	-	-	-	(1)	884
Advertising revenues	158	842	-	58	-	(62)	995
-of which digital	158	640	-	58	-	(55)	801
Subscription revenues	-	734	-	53	-	-	788
-of which digital	-	350	-	53	-	-	403
Casual sales	-	264	-	-	-	-	264
Other revenues	88	190	489	415	231	(425)	989
Revenues from contracts with	1,130	2,030	489	526	231	(487)	3,919
customers
Revenues from lease contracts,	1	25	2	-	16	(28)	17
government grants and others
Operating revenues	1,131	2,055	491	526	248	(515)	3,936
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	(1,889)	15,208
Revenues from lease contracts,	10	118	3	-	76	(142)	64
government grants and others
Operating revenues	4,856	7,608	1,822	2,035	982	(2,032)	15,272

			eCommerce	Financial	Other /
	Nordic	News	&	Services &	Head	Elimina
Year 2021	Marketplaces	Media	Distribution	Ventures	-quarters	-tions	Schibsted
Classifieds revenues	3,311	-	-	-	-	(2)	3,309
Advertising revenues	537	2,797	-	171	-	(196)	3,309
-of which digital	537	2,113	-	171	-	(186)	2,634
Subscription revenues	-	2,851	-	243	-	(1)	3,093
-of which digital	-	1,313	-	243	-	-	1,556
Casual sales	-	1,107	-	-	-	-	1,107
Other revenues	325	661	1,907	1,613	839	(1,608)	3,736
Revenues from contracts with	4,174	7,416	1,907	2,026	839	(1,808)	14,554
customers
Revenues from lease contracts,	2	109	6	-	65	(113)	69
government grants and others
Operating revenues	4,176	7,525	1,913	2,026	904	(1,921)	14,623

Note 4 - Other income and other expenses

	Fourth quarter		Year
(NOK million)	2022	2021	2022	2021
Gain on sale of subsidiaries	-	1	(1)	101
Gain on sale of intangible assets, property, plant and equipment	-	-	-	2
Gain from remeasurement of previously held equity interests in business	-	-	-	51
combinations achieved in stages
Gain on amendments and curtailment of pension plans	1	-	13	15
Other	-	-	-	11
Total other income	1	1	13	181
Restructuring costs	(32)	(5)	(83)	(52)
Transaction-related costs	(21)	(26)	(90)	(80)
Loss on sale of subsidiaries	1	(34)	1	(34)
Loss on amendments and curtailment of pension plans	-	(2)	-	-
Other	-	(3)	(1)	(6)
Total other expenses	(52)	(70)	(173)	(172)

Other expenses in 2022 include restructuring costs related to the transition to a vertical-based operating model in Nordic Marketplaces and to integration of the operations in Nordic Marketplaces Denmark.

Note 5 - Joint ventures and associates

	Fourth quarter		Year
(NOK million)	2022	2021	2022	2021
Net profit (loss) attributable to owners of the parent as reported by Adevinta ASA (EUR million)	(54)	-	30	-
Schibsted's share of reported amount	(172)	-	105	-
Adjustments for the effect of fair value differences from notional purchase price allocation	(34)	(105)	(413)	(105)
Total share of profit (loss) of Adevinta	(207)	(105)	(309)	(105)
Share of profit (loss) of other joint ventures and associates	(63)	(41)	(173)	(88)
Share of profit (loss) of joint ventures and associates	(270)	(146)	(482)	(193)

Schibsted's investment in Adevinta ASA is accounted for as an associate applying the equity method with effect from the third quarter of 2021. As Adevinta ASA issues its interim financial statements later than Schibsted, the share of profit (loss) is reported with a one quarter lag. Share of profit (loss) for the current interim period thereby reflects the profit (loss) of Adevinta for the previous quarter. This is applicable from Q4 2021. 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.

In December 2022, Schibsted sold 61,247,149 shares in Adevinta ASA, thereby reducing the ownership interest from approximately 33.4 per cent to approximately 28.4 per cent of outstanding shares. The retained interest will continue to be accounted for as an associate applying the equity method.

The sale of shares is accounted for as a reduction in ownership interest of an associate with a gain of NOK 686 million recognised in the line item Gains (losses) on disposal of joint ventures and associates.

Simultaneously, Schibsted entered into a total return swap with financial exposure to 36,748,289 shares in Adevinta ASA. Schibsted has no right or obligation to acquire the underlying shares. The total return swap is recognised as a financial derivative with changes in fair value recognised in financial income or expenses. A loss of NOK 438 million is recognised for such changes in fair value in Q4 2022.

Impairment loss on joint ventures and associates primarily relate to the investment in Adevinta ASA reflecting a significant decline in the quoted share price for the full year and a modest increase in the share price during the fourth quarter of 2022. Also, associates within the venture portfolio have been impaired by NOK 89 million in 2022.

Share of profit (loss) of other joint ventures and associates are primarily related to the venture portfolio.

Note 6 - Financial items

	Fourth quarter		Year
(NOK million)	2022	2021	2022	2021
Interest income	16	2	24	8
Net foreign exchange gain	1	-	13	-
Gain from fair value measurement of equity instruments	-	16	76	16
Other financial income	-	-	3	4
Total financial income	17	18	117	28
Interest expenses	(93)	(56)	(291)	(202)
Net foreign exchange loss	-	(1)	-	(6)
Loss from fair value measurement of equity instruments	(16)	(15)	(82)	(17)
Loss from fair value measurement of total return swap (Note 5)	(438)	-	(438)	-
Other financial expenses	(7)	(6)	(19)	(22)
Total financial expenses	(553)	(78)	(830)	(248)
Net financial items	(536)	(59)	(713)	(220)

Gain from fair value measurement in 2022 is related to the investment in Tibber AS, while loss from fair value remeasurement is related to the investments in Firi AS and eEducation Albert AB.

For more information on the total return swap, see Note 5.

Note 7 - Income taxes

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

	Fourth quarter			Year
(NOK million)	2022	2021	2022	2021
Profit (loss) before taxes	559	(19,782)	(22,244)	(18,618)
Tax (expense) income based on weighted average tax rates*	(124)	4,355	4,892	4,103
Prior period adjustments	(11)	(2)	(16)	(1)
Tax effect of share of profit (loss) from joint ventures and associates	(58)	(32)	(104)	(41)
Tax effect of impairment loss on goodwill, joint ventures and associates	93	(4,399)	(5,020)	(4,419)
Tax effect of other permanent differences	30	16	18	84
Current period unrecognised deferred tax assets	(1)	(7)	(24)	(20)
Re-assessment of previously unrecognised deferred tax assets	-	13	-	13
Tax (expense) income recognised in profit or loss		(57)	(254)	(280)
*Weighted average tax rates	22.3%	22.0%	22.0%	22.0%

Profit (loss) before taxes in 2022 is negatively affected by an impairment loss of NOK -22,823 million. This consists mainly of impairment of the investment in Adevinta, see also Note 5. Tax effect of impairment loss on goodwill, joint ventures and associates relates primarily to the non-deductibility of the write-down.

Note 8 - Statement of cash flows from continuing operations

The consolidated statement of cash flows includes the following cash flow related to continuing operations:

	Fourth quarter		Year
(NOK million)	2022	2021	2022	2021
Profit (loss) before taxes from continuing operations	559	(19,782)	(22,244)	(18,618)
Depreciation, amortisation and impairment losses	(108)	20,275	23,971	21,103
Net interest expense	76	54	267	194
Net effect pension liabilities	11	(14)	(22)	(95)
Share of loss (profit) of joint ventures and associates	270	146	482	193
Dividends received from joint ventures and associates	1	-	56	3
Interest received	16	2	24	8
Interest paid	(82)	(57)	(266)	(176)
Taxes paid	(54)	(8)	(260)	(185)
Sales losses (gains) non-current assets and other non-cash losses (gains)	(203)	(95)	(233)	(271)
Non-cash items and change in working capital and provisions	229	145	(90)	2
Net cash flow from operating activities from continuing operations	715	665	1,684	2,157
Development and purchase of intangible assets and property, plant and	(282)	(241)	(1,048)	(723)
equipment
Acquisition of subsidiaries, net of cash acquired	(189)	(71)	(451)	(3,029)
Investment in other shares	(78)	(389)	(438)	(614)
Proceeds from sale of intangible assets and property, plant and equipment	1	-	3	11
Proceeds from sale of subsidiaries, net of cash sold	1	8	-	(1)
Sale of other shares		64	4,548	101
Net change in other investments	(7)	(14)	1	(170)
Net cash flow from investing activities from continuing operations	3,993	(642)	2,616	(4,425)
New interest-bearing loans and borrowings	-	1,000	3,158	4,300
Repayment of interest-bearing loans and borrowings	(985)	(539)	(3,669)	(1,179)
Payment of principal portion of lease liabilities		(85)	(333)	(329)
Change in ownership interests in subsidiaries		-	(33)	(1)
Net sale (purchase) of treasury shares		10	(239)	35
Dividends paid to owners of the parent		-	(468)	(468)
Dividends paid to non-controlling interests	(2)	(1)	(88)	(57)
Net cash flow from financing activities from continuing operations		384	(1,672)	2,301

Note 9 - Events after the balance sheet date

News Media reduces costs

Schibsted's media division News Media in January 2023 informed that it will be reducing costs by NOK 500 million over the next two years in order to improve profitability and bring its EBITDA margin back to the target range of 10-12 per cent in 2024. Rising paper and energy prices over the last years have impacted the print profitability and News Media's overall profitability significantly and measures need to be taken.

News Media will realise gross cost savings of NOK 500 million by 2024 through improvements within three focus areas:

• improving profitability in the print value chain
• increasing operational efficiency across the organisation
• establishing a more effective and efficient organisation across the product, tech and consumer business domains, to better cater to user needs

Net savings will be reduced by inflation and wage increases.

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 2022 Share of profit (loss) of joint ventures and associates is presented below Operating profit (loss). See Note 1 for further information. Schibsted has adjusted the reporting structure effective 1 January 2022. See Note 3 for more information. Affected APMs are restated retrospectively to give comparable information.

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.

	Fourth quarter		Year
Reconciliation of EBITDA	2022	2021	2022	2021
Gross operating profit (loss)	651	634	2,406	2,740
= EBITDA	651	634	2,406	2,740

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

		31 Dec
Liquidity reserve	2022	2021
Cash and cash equivalents	3,738	1,108
Unutilised drawing rights	3,154	2,997
Liquidity reserve	6,892	4,105

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 Dec
Net interest-bearing debt	2022	2021
Non-current interest-bearing loans and borrowings	4,630	3,592
Current interest-bearing loans and borrowings	1,724	3,274
Cash and cash equivalents	(3,738)	(1,108)
Net interest-bearing debt	2,616	5,758

Measure	Description	Reason for including
Earnings per share adjusted (EPS (adj.))	Earnings per share adjusted for items reported as other income, other expenses, impairment loss, 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.	The measure is used for presenting earnings to shareholders adjusted for income and expenses 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.

	Fourth quarter		Year
Earnings per share - adjusted - total		2021	2022	2021
Profit (loss) attributable to owners of the parent	454	(19,859)	(22,582)	41,341
Impairment loss	23	14	31	119
Other income	(1)	(1)	(13)	(184)
Other expenses	52	70	173	1,351
Impairment loss on joint ventures and associates	(424)	19,998	22,823	20,000
Gains (losses) on disposal of joint ventures and associates		(131)	(675)	(148)
Gains (losses) from fair value measurement of total return swap	438	-	438	-
Gain on loss of control of discontinued operations		3	31	(60,409)
Taxes and Non-controlling interests related to adjustments above		(13)	(46)	(538)
Profit (loss) attributable to owners of the parent - adjusted		81	181	1,532
Earnings per share – adjusted (NOK)		0.35	0.77	6.54
Diluted earnings per share – adjusted (NOK)		0.35	0.77	6.54

Earnings per share - adjusted		Fourth quarter		Year
- continuing operations	2022	2021	2022	2021
Profit (loss) attributable to owners of the parent	454	(19,859)	(22,582)	41,341
-of which continuing operations	478	(19,857)	(22,558)	(18,986)
-of which discontinued operations	(24)	(2)	(24)	60,327
Profit (loss) attributable to owners of the parent - continuing operations	478	(19,857)	(22,558)	(18,986)
Impairment loss	23	14	31	119
Other income	(1)	(1)	(13)	(181)
Other expenses	52	70	173	172
Impairment loss on joint ventures and associates	(424)	19,998	22,823	20,000
Gains (losses) on disposal of joint ventures and associates	(657)	(131)	(675)	(148)
Gains (losses) from fair value measurement of total return swap	438	-	438	-
Taxes and Non-controlling interests related to adjustments above		(12)	(38)	(30)
Profit (loss) attributable to owners of the parent - adjusted		81	181	946
Earnings per share – adjusted (NOK)		0.35	0.77	4.04
Diluted earnings per share – adjusted (NOK)		0.35	0.77	4.04

Measure	Description	Reason for including
Revenues on a foreign exchange neutral basis	Growth rates on revenue on a foreign exchange neutral basis are calculated 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 currency fluctuation.

			eCommerce	Financial
Reconciliation of revenues on a foreign	Nordic	News	&	Services &	Other/HQ,
exchange neutral basis	Marketplaces	Media	Distribution	Ventures	Eliminations	Total
Revenues current quarter 2022	1,203	2,019	506	562	(302)	3,988
Currency effect	-	26	-	6	(4)	29
Revenues adjusted for currency	1,203	2,046	506	568	(306)	4,017
Revenue growth on a foreign exchange neutral basis	6%	(0%)	3%	8%	(14%)	2%
Revenues current quarter 2021	1,131	2,055	491	526	(268)	3,936

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	Nordic	News	eCommerce &	Financial Services &	Other/HQ,
business combinations	Marketplaces	Media	Distribution	Ventures	Eliminations	Total
Revenues current quarter 2022	1,203	2,019	506	562	(302)	3,988
Currency effect	-	26	-	6	(4)	29
Revenues adjusted for currency	1,203	2,046	506	568	(306)	4,017
Revenue growth on a foreign exchange neutral basis adjusted for business combinations and disposals of subsidiaries	6%	(0%)	3%	14%	(14%)	3%
Revenues current quarter 2021 (presented)	1,131	2,055	491	526	(268)	3,936
Revenues from disposed subsidiaries	-	-	-	(28)	-	(28)
Revenues current quarter 2021 adjusted for business combinations and disposals of subsidiaries	1,131	2,055	491	498	(268)	3,908

Kundkraft i Sverige AB was disposed in Q3 2021. Mötesplatsen i Norden AB and Let's Deal AB were disposed in Q4 2021.

Currency rates used when converting	Fourth quarter		Year
profit or loss	2022	2021	2022	2021
Swedish krona (SEK)	0.9501	0.9850	0.9506	1.0019
Danish krone (DKK)	1.3971	1.3408	1.3579	1.3666
Euro (EUR)	10.3919	9.9723	10.1020	10.1633

*Brands that Schibsted owns or has invested in