Investor Presentation • Feb 11, 2022
Investor Presentation
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11 February 2022
Kristin Skogen Lund, CEO Jann-Boje Meinecke, Head of IR
Q&A
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This presentation (hereinafter referred to as the "presentation") has been prepared by Schibsted ASA ("Schibsted" or the "Company") exclusively for information purposes and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments.
Reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions contained herein are fair and reasonable, however no representation or warranty, express or implied, is given by or on behalf of the Company, any of its directors, or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability is accepted for any such information or opinions.
This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the Company or assumptions based on information available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness of such information and statements. Several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation.
There may have been changes in matters which affect the Company subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed.
The Company does not intend, and does not assume any obligation, to update or correct any information included in this presentation.
Alternative performance measures (APM) used in this presentation are described and presented in the section Definitions and reconciliations in the quarterly report.
3 * Foreign exchange neutral basis and including pro-forma revenues for Oikotie and Denmark before Schibsted ownership
** Foreign exchange neutral basis
4
• Remaining as committed financial owner focusing on shareholder value creation, with strong support for the new strategy which was presented at Adevinta's Capital Markets Day
* Foreign exchange neutral basis and including pro-forma Denmark revenues in Q4 2020
** Foreign exchange neutral basis
Detailing out emission targets aligned with the Science Based Targets framework
Machine learning project in Aftonbladet to reduce unsold newspapers
Increasing our efforts for learning and skills developments of our employees, through external and internal online courses
Schibsted@work – testing new hybrid and flexible ways of working
Employee satisfaction score remained above ambitious target
Preparing publication of TCFD report for 2021
Preparing disclosure on EU Taxonomy in Sustainability Report 2021
Recognised as a 'Top-Rated' ESG performer by Sustainalytics in both our industry and region in January 2022
Revenues (NOKm), EBITDA margin (%)
Revenues Q4 2021 (share in %)
Revenues (NOKm), EBITDA margin (%) Highlights
Revenues (SEKm), EBITDA margin (%)
Revenues (EURm), EBITDA margin (%)*
10 * Pro-forma revenues and EBITDA margin, including Oikotie financials in Q4 2019
Revenues (DKKm), EBITDA margin (%)*
*Average revenue per listing from Bilbasen dealers, including dealer packages and upsell
** Average yearly YoY growth 12
Revenues (NOKm), EBITDA margin (%)
News Media
Subscription revenues (NOKm) Advertising revenues (NOKm)**
16 * Foreign exchange neutral basis
** Norway and Sweden not including eliminations
Key content initiatives to drive growth with the overall ambition…
…to double pure digital subscription revenues by the end of 2025 (NOKm)
Revenues (NOKm), EBITDA margin (%)
Revenues (NOKm), EBITDA margin (%)
Schibsted Group Q4 EBITDA per segment (NOKm)
Full-year revenues, EBITDA (NOKm)
Full-year EBITDA per segment (NOKm)
| Income statement | Fourth quarter | ||
|---|---|---|---|
| (NOK million) | 2020 | 2021 | |
| Operating revenues | 3,620 | 3,936 | |
| Operating expenses | (2,956) | (3,302) | |
| Gross operating profit (loss) - EBITDA | 665 | 634 | |
| Depreciation and amortisation | (218) | (262) | |
| Share of profit (loss) of joint ventures and associates | (12) | (146) | |
| Impairment loss | (40) | (20,012) | |
| Other income | 17 | 133 | |
| Other expenses | (72) | (70) | |
| Operating profit (loss) | 339 | (19,723) | |
| Net financial items | (36) | (59) | |
| Profit (loss) before taxes from continuing operations | 304 | (19,782) | |
| Taxes | (49) | (57) | |
| Profit (loss) from continuing operations | 254 | (19,839) | |
| Profit (loss) from discontinued operations | 444 | (2) | |
| Profit (loss) | 698 | (19,841) | |
| Non-controlling interests | 209 | 18 | |
| Owners of the parent | 490 | (19,859) | |
| Earnings per share (NOK) | |||
| EPS - basic (NOK) | 2.09 | (84.86) | |
| EPS - basic adjusted (NOK) | 2.69 | 0.35 |
Includes Schibsted's share of Adevinta's result for the third quarter of 2021 adjusted for amortization of excess values amounting to NOK -105 million
Mainly related to a decline in the share price of Adevinta, based on the period 25 June until 31 December 2021*
Includes a gain on remeasurement of eEducation Albert of NOK 99 million and gain on sale of Capcito of NOK 32 million
Mainly related to loss on sale of Let's Deal of NOK 34 million and cost related to integration of Marketplaces Denmark
27 * Based on closing price 24 June, and 30 December 2021
EBITDA (NOKm)
Operating cash flow (NOKm)
Targeting financial gearing in the range of 1-3 (NIBD/EBITDA according to bank definition)
* As of 31 December 2021 ** According to bank definition 29
| Nordic Marketplaces |
Nordic Marketplaces revenues Targeting annual revenue growth of 8-12% for the segment in the medium- to long-term |
|---|---|
| News Media |
Medium-term targets for the segment Annual revenue growth: low single-digit EBITDA margin: 10-12% |
| Capital allocation |
M&A M&A activities targeted primarily to strengthen market positions and bolt-on adjacent businesses |
| Dividend policy Stable to increasing dividend over time |
|
| Capital structure |
Leverage policy Targeting NIBD/EBITDA in the range of 1-3, making it possible to lever up if a particularly attractive investment becomes available Any over-capitalization to be addressed through (extraordinary) dividend or share buyback |
Kristin Skogen Lund, CEO Christian Printzell Halvorsen, EVP Nordic Marketplaces Jann-Boje Meinecke, Head of IR
Spreadsheet containing detailed Q4 2021 and historical information can be downloaded at schibsted.com/ir
Nordic Marketplaces
Jobs: All ads approved per quarter, Q4 YoY change (absolute numbers, %)
33 * There are two adjustments of historical numbers: Norway Jobs are adjusted to also reflect re-uses of previous publications; Sweden Jobs are adjusted
due to correction of historical calculations
(Monthly growth YoY, %)
| Country | Vertical | Oct-20 | Nov-20 | Dec-20 | Jan-21 | Feb-21 | Mar-21 | Apr-21 | May-21 | Jun-21 | Jul-21 | Aug-21 | Sep-21 | Oct-21 | Nov-21 | Dec-21 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Norway | Jobs* | -11% | 0% | 5% | -9% | 6% | 80% | 119% | 83% | 75% | 66% | 76% | 56% | 51% | 57% | 53% |
| Motor | -6% | 3% | 8% | -11% | -7% | 16% | 16% | -1% | 5% | 0% | 6% | 8% | 4% | 1% | 2% | |
| Real estate | -2% | -3% | 4% | -9% | -6% | 17% | 19% | 3% | 2% | -14% | -5% | -9% | -12% | -1% | -16% | |
| Sweden | Jobs* | -20% | -16% | -10% | -14% | -10% | 30% | 89% | 107% | 67% | 97% | 79% | 52% | 50% | 67% | 56% |
| Motor | -2% | 4% | 10% | -13% | -9% | 12% | 7% | 0% | -10% | -10% | 0% | -6% | -6% | -6% | -15% | |
| Finland | Jobs | -18% | -12% | 5% | -10% | 9% | 29% | 116% | 105% | 82% | 73% | 78% | 65% | 88% | 89% | 109% |
| Real estate | 7% | 2% | 33% | 0% | 1% | 13% | 14% | 13% | 6% | 6% | 19% | 4% | 7% | 4% | 1% | |
| Denmark | Motor | -7% | -2% | 9% | -12% | -16% | -5% | -4% | -12% | -11% | -19% | -12% | -14% | -11% | -14% | -9% |
34 * There are two adjustments of historical numbers: Norway Jobs are adjusted to also reflect re-uses of previous publications; Sweden Jobs are adjusted due to correction of historical calculations
| Cash flow | Fourth quarter | ||
|---|---|---|---|
| (NOK million) | 2020 | 2021 | |
| Profit (loss) before taxes from continuing operations | 304 | (19,782) | |
| Depreciation, amortisation and impairment losses | 258 | 20,275 | |
| Net effect pension liabilities | (5) | (14) | |
| Share of loss (profit) of joint ventures and associates, net of dividends received | 12 | 146 | |
| Taxes paid | (96) | (8) | |
| Sales losses (gains) non-current assets and other non-cash losses (gains) | (11) | (95) | |
| Non-cash items and change in working capital and provisions | 118 | 144 | |
| Net cash flow from operating activities | 581 | 665 | |
| Development and purchase of intangible assets, and property, plant and equipment | (164) | (241) | |
| Acquisition of subsidiaries, net of cash acquired | - | (71) | |
| Proceeds from sale of intangible assets, and property, plant and equipment | - | - | |
| Proceeds from sale of subsidiaries, net of cash sold | - | 8 | |
| Net sale of (investment in) other shares | (46) | (325) | |
| Net change in other investments | 28 | (14) | |
| Net cash flow from investing activities | (181) | (642) | |
| Net cash flow from financing activities | (107) | 384 | |
| Effects of exchange rate changes on cash and cash equivalents | (7) | (4) |
| Cash flow | Fourth quarter | ||
|---|---|---|---|
| (NOK million) | 2020 | 2021 | |
| Profit (loss) before taxes from continuing operations | 304 | (19,782) | |
| Profit (loss) before taxes from discontinued operations | 426 | - | |
| Depreciation, amortisation and impairment losses | 258 | 20,275 | |
| Net effect pension liabilities | 21 | (14) | |
| Share of loss (profit) of joint ventures and associates, net of dividends received | 12 | 146 | |
| Taxes paid | (297) | (8) | |
| Sales losses (gains) non-current assets and other non-cash losses (gains) | (50) | (95) | |
| Non-cash items and change in working capital and provisions | 69 | 144 | |
| Net cash flow from operating activities | 742 | 665 | |
| Net cash flow from investing activities | (3,162) | (645) | |
| Net cash flow from financing activities | 602 | 384 | |
| Effects of exchange rate changes on cash and cash equivalents | (172) | (4) | |
| Net increase (decrease) in cash and cash equivalents | (1,989) | 399 | |
| Cash and cash equivalents at start of period | 4,666 | 709 | |
| Cash and cash equivalents at end of period | 2,678 | 1,108 |
The relationship between tax (expense) income and accounting profit (loss) before taxes is as follows:
| Income tax | Fourth quarter | ||
|---|---|---|---|
| (NOK million) | 2020 | 2021 | |
| Profit (loss) before taxes | 304 | (19,782) | |
| Tax (expense) income based on weighted average tax rates* | (70) | 4,355 | |
| Prior period adjustments | (3) | (2) | |
| Tax effect of share of profit (loss) from joint ventures and associates | (3) | (32) | |
| Tax effect of impairment loss on goodwill, joint ventures and associates | (4) | (4,399) | |
| Tax effect of other permanent differences | 2 | 16 | |
| Current period unrecognised deferred tax assets | (7) | (7) | |
| Re-assessment of previously unrecognised deferred tax assets | 35 | 13 | |
| Tax (expense) income recognised in profit or loss | (49) | (57) | |
| * Weighted average tax rates | 23.1% | 22.0% |
| Rank | Name | A-shares | B-Shares | Total | % of S/O | |
|---|---|---|---|---|---|---|
| 1 | Blommenholm Industrier AS | 28,541,262 | 30,013,354 | 58,554,616 | 25.0% | |
| 2 | Baillie Gifford & Co. | 11,268,833 | 10,841,884 | 22,110,717 | 9.4% | |
| 3 | Folketrygdfondet | 9,205,395 | 10,815,669 | 20,021,064 | 8.6% | |
| 4 | Fidelity Management & Research Company LLC | 4,874,162 | 3,943,445 | 8,817,607 | 3.8% | |
| 5 | Adelphi Capital LLP | 2,229,832 | 4,267,064 | 6,496,896 | 2.8% | |
| 6 | The Vanguard Group, Inc. | 2,684,510 | 2,900,098 | 5,584,608 | 2.4% | |
| 7 | Alecta pensionsförsäkring, ömsesidigt | 0 | 5,193,000 | 5,193,000 | 2.2% | |
| 8 | NWT MEDIA AS | 2,592,000 | 2,592,000 | 5,184,000 | 2.2% | |
| 9 | BlackRock Institutional Trust Company, N.A. | 2,117,456 | 2,792,893 | 4,910,349 | 2.1% | |
| 10 | DNB Asset Management AS | 1,281,457 | 3,212,487 | 4,493,944 | 1.9% | |
| 11 | Mitsubishi UFJ Trust and Banking Corporation | 2,328,002 | 1,761,059 | 4,089,061 | 1.7% | |
| 12 | Pelham Capital Ltd | 0 | 4,077,332 | 4,077,332 | 1.7% | |
| 13 | KLP Forsikring | 438,401 | 2,948,924 | 3,387,325 | 1.4% | |
| 14 | Storebrand Kapitalforvaltning AS | 1,438,324 | 1,822,783 | 3,261,107 | 1.4% | |
| 15 | Vor Capital LLP. | 0 | 2,300,910 | 2,300,910 | 1.0% | |
| 16 | Premier Miton Investors | 2,244,674 | 0 | 2,244,674 | 1.0% | |
| 17 | Arctic Fund Management AS | 0 | 2,117,888 | 2,117,888 | 0.9% | |
| 18 | Alfred Berg Kapitalforvaltning AS | 706,817 | 1,270,065 | 1,976,882 | 0.8% | |
| 19 | Nordea Funds Oy | 137,873 | 1,714,351 | 1,852,224 | 0.8% | |
| 20 | Fidelity Institutional Asset Management | 1,251,258 | 598,837 | 1,850,095 | 0.8% |
The shareholder ID data is provided by Nasdaq OMX. The data is obtained through the analysis of beneficial ownership and fund manager information provided in replies to disclosure of ownership notices issued to all custodians on the Schibsted share register. Whilst every reasonable effort is made to verify all data, neither Nasdaq OMX nor Schibsted can guarantee the accuracy of the analysis.
Source: Nasdaq OMX, VPS; Data as of 17 January 2022
Visit Schibsted's website schibsted.com
E-mail: [email protected]
Jann-Boje Meinecke VP, Head of IR +47 941 00 835
Schibsted ASA Akersgata 55 / P.O. Box 490 Sentrum NO-0105 Oslo
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