Vend Marketplaces ASA

Quarterly Report • Oct 28, 2020

Q3 2020 Results

28 October 2020

Kristin Skogen Lund, CEO Ragnar Kårhus, CFO

Disclaimer

This presentation (hereinafter referred to as the "presentation") has been prepared by Schibsted ASA ("Schibsted" or the "Company") exclusively for information purposes and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments.

Reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions contained herein are fair and reasonable, however no representation or warranty, express or implied, is given by or on behalf of the Company, any of its directors, or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability is accepted for any such information or opinions.

This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the Company or assumptions based on information available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness of such information and statements. Several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation.

There may have been changes in matters which affect the Company subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed.

The Company does not intend, and does not assume any obligation, to update or correct any information included in this presentation.

Alternative performance measures (APM) used in this presentation are described and presented in the section Definitions and reconciliations in the quarterly report.

Adevinta reported as Discontinued operations beginning in Q3 2020

Following the announcement 21 July 2020, that Adevinta entered into a definitive agreement to acquire eBay Classifieds Group, Schibsted determined that Adevinta met the criteria for the classification of held-for-sale accounting and discontinued operations.

Accordingly, Adevinta's financial results will be presented in Schibsted's consolidated financial statements as discontinued operations beginning in Q3 2020 and until the deal is closed*.

After closing*, Adevinta will, according to the equity method, come in with its proportional share of the net profit under "Share of profit (loss) of joint ventures and associates".

As a result, Schibsted Group's consolidated revenues and EBITDA do not include Adevinta's financial results.

Please refer to the stock exchange announcement from 23 Oct 2020 or schibsted.com/ir for re-presented historical financial results.

3 * Closing of the transaction is expected by Q1 2021, and is subject to eBay Classifieds Group Dutch Works Council approval,

shareholder approval in Adevinta, and regulatory approvals and customary closing obligations.

An exceptional quarter

Creating the world's largest online classifieds platform with Adevinta and eBay Classifieds Group*

Strengthening our position as the Nordic online classifieds champion with the acquisition of Oikotie in Finland and eBay Classifieds' Danish operations*

Very strong quarterly EBITDA of NOK 678m, up 25% YoY

* Closing of the transaction is expected by Q1 2021, and is subject to eBay Classifieds Group Dutch Works Council approval,

4 shareholder approval in Adevinta, and regulatory approvals and customary closing obligations.

Good margins across all business areas

Nordic Marketplaces

Underlying revenue growth improved QoQ while Jobs and Travel have continued to see substantial decline

EBITDA margin of 47% in Norway and Sweden

Oikotie integration in Finland progressing according to plan

News Media

Strong growth for digital subscriptions continued

Advertising improved further QoQ due to digital, but remains volatile

Extraordinary strong EBITDA margin of 15% driven by cost savings from cost program and reduced variable costs driven by remote work

Financial Services

Revenues growth in Lendo still impacted by COVID-19 as banks have continued to be more restrictive in their lending practices

Lendo's EBITDA margin increased due to improved cost and marketing efficiency, and lower expansion investments

Schibsted Growth

Another quarter with good revenue growth driven by Prisjakt and Distribution

EBITDA growing QoQ and YoY driven by higher revenues

External and internal trends have improved, while volatility and uncertainty remains

Mobility trends recovered, unemployment rate still affected

Registered unemployment, Norway (%)

Our website traffic is at higher levels than pre-COVID-19

Revenues have improved but remain volatile

Blocket's monthly visits (%) Classifieds revenue trend Schibsted (%)

6 Sources: Apple Maps Mobility Trends Reports; Norges Bank Monetary Policy Reports; Internal data; Classifieds revenues adjusted for the acquisition of Oikotie

Following a systematic approach to deliver on our sustainability ambitions and targets

Nordic Marketplaces

Improved revenue trend QoQ driven by Real estate and Motor; Oikotie integration in Finland on track

Nordic Marketplaces

Revenues (NOKm), EBITDA margin (%)

* Foreign exchange neutral basis; adjusted for acquisition of Oikotie (total revenue effect of NOK 52m in Q3 2020)

** EBITDA including IFRS 16 effect estimate ⁹

Revenues per country Revenues (NOKm, share in %)

Real estate drives revenue improvement QoQ; Jobs and Travel still significantly affected

Marketplaces Norway Revenues (NOKm), EBITDA margin (%) Highlights

• Real estate and Motor revenues growing YoY with an exceptional July as people vacationed in Norway rather than going abroad
• Jobs, advertising and particularly Travel still significantly affected by macro environment and COVID-19, declining YoY
• Listings continued to improve QoQ, supported by strong website traffic
• EBITDA margin declining YoY driven by lower revenues, and ramp-up of investments to deliver on our growth ambition

Listings continued to recover with strong July due to travel restrictions; good traffic growth

Marketplaces Norway

New approved ads (monthly growth YoY, %)

Continued strong growth YoY in monthly visits (million)

Good performance within Motor vertical drives revenue growth recovery

Marketplaces Sweden

Revenues (NOKm), EBITDA margin (%)

Highlights

• Continued growth in Motor revenues driven by higher ARPD from visibility product "Bump"
• Jobs still significantly affected by COVID-19, while trend for advertising (-5%*) has somewhat improved
• Continued strong traffic and good volume trend during summer
• Temporary cost savings have dampened cost increase, improved EBITDA margin compared to previous quarters

Listings showed signs of improvements; continued strong traffic

Marketplaces Sweden

New approved ads (monthly growth YoY, %)

Continued strong growth YoY in monthly visits (million)

Real estate and Generalist growing revenues YoY; Jobs and advertising still affected

Marketplaces Finland

Revenues (NOKm), EBITDA margin (%)

Highlights

• Oikotie integration progressing as planned, new country organization and management team in place
• Real estate and Generalist revenue growth, while Jobs and advertising are still down due to COVID-19 effects
• Tori revenues declined 2%* YoY
• Pro forma Oikotie revenues declined 11%* YoY
• EBITDA improvement driven by the Oikotie acquisition, but like-for-like EBITDA declined due to revenue shortfall

Jobs and Real estate listings started to show recovery supported by strong traffic growth

Marketplaces Finland

New approved ads* (monthly growth YoY, %) Continued strong growth YoY in monthly visits (million)**

* Oikotie only ** Sum of Oikotie and Tori ¹⁵

News Media

Exceptionally strong EBITDA margin due to lower costs; revenue growth driven by digital

News Media

Revenues (NOKm), EBITDA margin (%)

Highlights

• Continued strong growth in digital subscription revenues, mainly driven by higher volumes
• Advertising revenues improving driven by digital growing YoY
• Cost reduction program of NOK 500m progressing faster than initially planned
• Overall reduced variable costs due to remote work
• One-offs of SEK 15m from Government grants in Sweden affecting revenues positively

* Foreign exchange neutral basis and adjusted for sale of certain regional and local newspapers (total revenue effect NOK 68m in Q3 2019)

** EBITDA including IFRS 16 effect estimate ¹⁷

Continued growth in subscription revenues; gradual improvement within digital advertising revenues

Growth in digital subscription revenues driven by both ARPU and volume

* Foreign exchange neutral basis and adjusted for sale of certain regional and local newspapers (subscription revenue effect NOK 38m, whereof digital NOK 11m, and advertising revenue effect NOK 25m, whereof NOK 8m digital in Q3 2019); ** Norway and Sweden not including eliminations 18

Growth within digital advertising as impact from COVID-19 diminishes

Subscription revenues (NOKm) Advertising revenues (NOKm)**

Next

Financial Services & Growth

Top-line impacted by COVID-19; strong margins

Lendo Group Revenues (NOKm), EBITDA margin (%)

Highlights

• Revenue growth still impacted by COVID-19, particularly in Sweden, as banks have continued to be more restrictive in their lending practices
• Denmark and Norway performing well despite COVID-19
• Profitability significantly improved due to improved cost and marketing efficiency, and lower investments for expansion
• Targeting EBITDA investments for expansion of around NOK 70m for 2020

Strong performance in Distribution and Prisjakt drive revenue growth; EBITDA improving QoQ and YoY

Schibsted Growth

Revenues (NOKm), EBITDA margin (%)

* Foreign exchange neutral basis

** EBITDA including IFRS 16 effect estimate ²¹

Highlights

• Continued strong growth in Distribution and Prisjakt due to increased online shopping trends driven by social distancing under COVID-19
• Distribution growing 20% YoY due to New Business (+118%), seeing growth in customers, volumes and increased market awareness
• Prisjakt growing 19%* driven by higher traffic and click revenues
• Other Schibsted Growth growing 5%* YoY driven by MittAnbud

Finance

Very strong quarterly EBITDA, up 25% YoY

Schibsted Group

Revenues, EBITDA (NOKm)

Schibsted Group

EBITDA development YoY per segment (NOKm)

* Foreign exchange neutral basis ** EBITDA including IFRS 16 effect estimate ²³

Q3 income statement Schibsted Group

Q3 EBITDA, operating cash flow and capex Continuing operations

EBITDA (NOKm)

Operating cash flow (NOKm)

Continuing operations

NIBD/EBITDA increased to around 1.7* following the acquisition of Oikotie

Debt profile

(NOKm)

Highlights

• New bridge loan facility of EUR 350m in place to finance acquisition of the Danish eBay Classifieds operations
• Received consent to temporary waiver of our financial covenant (NIBD/EBITDA*) from closing** of the transaction until the bridge facility is repaid
• Option to pay down the facility through a future disposal of Adevinta shares

* According to bank definition; ** Closing of the transaction is expected by Q1 2021, and is subject to eBay Classifieds Group Dutch Works Council approval, shareholder approval in Adevinta, and regulatory approvals and customary closing obligations. ²⁶

Financial targets and policies

Nordic Marketplaces	Nordic Marketplaces revenues Targeting annual revenue growth of 8-12% for the segment in the medium- to long-term
News Media	News Media EBITDA margin Updated EBITDA margin of 8-10% in the medium-term
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

Appendices

Spreadsheet containing detailed Q3 2020 and historical information can be downloaded at schibsted.com/ir

Key operations [1/2]

		Third quarter		Year to date
(NOK million)	2020	2019	Change	2020	2019	Change
Advertising revenues	496	519	(4%)	1.550	1.850	(16%)
-of which digital	355	330	8%	1.069	1,173	(9%)
Subscription revenues	673	648	4%	1.961	1,902	3%
-of which digital	285	239	19%	789	662	19%
Casual sales	331	355	(7%)	952	1,028	(7%)
Other revenues	291	233	25%	873	741	18%
Operating revenues	1,791	1,754	2%	5,337	5,521	(3%)
Personnel expenses	(558)	(583)	(4%)	(1,838)	(1,932)	(5%)
Other expenses	(968)	(1,006)	(4%)	(3,046)	(3,105)	(2%)
Operating expenses	(1,526)	(1,589)	(4%)	(4,884)	(5,037)	(3%)
EBITDA	266	165	61%	453	484	(6%)
EBITDA margin	15%	9%		8%	9%

Split revenue per brand		Third quarter		Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
VG	441	418	5%	1,272	1.316	(3%)
Aftonbladet	367	347	6%	1.066	1.093	(2%)
Subscription Newspapers	767	830	(8%)	2.317	2.583	(10%)
Other	215	159	35%	682	529	29%
Operating revenues	1.791	1,754	2%	5.337	5,521	(3%)

2020			2020		2019 Change
617	601	3%	1.759	1.779	(1%)
110	106	4%	317	331	(4%)
100	62	61%	247	193	28%
827	769	8%	2,324	2,304	1%
356	373	(4%)	995	1.054	(6%)
43%			43%	46%
		Third quarter	2019 Change 48%		Year to date

	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Classifieds revenues	359	398	(10%)	1.070	1.195	(10%)
Advertising revenues	45	48	(7%)	144	146	(2%)
Other revenues	83	59	41%	222	184	21%
Operating revenues	486	505	(4%)	1.436	1,525	(6%)
EBITDA	230	266	(14%)	685	760	(10%)
EBITDA margin	47%	53%		48%	50%

	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Classifieds revenues	212	193	10%	621	558	11%
Advertising revenues	46	43	6%	128	136	(6%)
Other revenues	6	3	78%	14	8	65%
Operating revenues	263	240	10%	763	702	9%
EBITDA	125	118	6%	335	333	0%
EBITDA margın	47%	49%		44%	47%

	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Classifieds revenues	47	10	>100%	69	26	>100%
Advertising revenues	20	15	34%	45	49	(9%)
Other revenues	12		>100%	13	2	>100%
Operating revenues	79	25	>100%	127	77	66%
BITDA	15	3	>100%	19	6	>100%
EBITDA margın	19%	11%		15%	8%
					C

29

Key operations [2/2]

	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Operating revenues	289	275	5%	834	794	5%
EBITDA	86	51	68%	154	137	13%
EBITDA margin	30%	19%		18%	17%

Lendo Group	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Operating revenues	251	230	9%	709	664	7%
EBITDA	78	47	66%	146	124	17%
EBITDA margin	31%	20%		21%	19%

	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Operating revenues	616	517	19%	1.801	1.530	18%
EBITDA	40	16	>100%	51	43	18%
EBITDA margin	6%	3%		3%	3%

	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Operating revenues	368	307	20%	1.089	893	22%
EBIDA	റ	10	-15%	14	23	-38%
EBITDA margin	2%	3%		1%	3%

	Third quarter			Year to date
(NOK million)	2020		2019 Change	2020		2019 Change
Operating revenues	86	64	34%	254	209	22%
EBITDA	26	13	>100%	74	51	45%
EBITDA margın	31%	20%		29%	25%

Continuing operations

Q3 cash flow

Cash flow	Third Quarter
(NOK million)	2019	2020
Profit (loss) before taxes from continuing operations	266	321
Depreciation, amortisation and impairment losses	196	225
Net effect pension liabilities	(5)	11
Share of loss (profit) of joint ventures and associates, net of dividends received	9	(2)
Taxes paid	(54)	(91)
Sales losses (gains) non-current assets and other non-cash losses (gains)		ડે
Non-cash items and change in working capital and provisions	46	(175)
Net cash flow from operating activities	4.57	293
Development and purchase of intangible assets, and property, plant and equipment	(100)	(129)
Acquisition of subsidiaries, net of cash acquired	(9)	(1,951)
Proceeds from sale of intangible assets, and property, plant and equipment	2
Proceeds from sale of subsidiaries, net of cash sold	(1)	(2)
Net sale of (investment in) other shares	(46)	(26)
Net change in other investments	(8)	(11)
Net cash flow from investing activities	(163)	(2,125)
Net cash flow from financing activities	(698)	(71)
Effects of exchange rate changes on cash and cash equivalents	(2)	5
Net increase (decrease) in cash and cash equivalents	(406)	(1,898)

Q3 cash flow Schibsted Group

Cash flow	Third Quarter
(NOK million)	2019	2020
Profit (loss) before taxes from continuing operations	266	321
Profit (loss) before taxes from discontinued operations	374	(24)
Depreciation, amortisation and impairment losses	297	258
Net effect pension liabilities	(5)	14
Share of loss (profit) of joint ventures and associates, net of dividends received	10	31
Taxes paid	(182)	(189)
Sales losses (gains) non-current assets and other non-cash losses (gains)	(4)	(14)
Non-cash items and change in working capital and provisions	63	257
Net cash flow from operating activities	820	654
Net cash flow from investing activities	(277)	(2,240)
Net cash flow from financing activities	(726)	(99)
Effects of exchange rate changes on cash and cash equivalents	9	ea
Net increase (decrease) in cash and cash equivalents	(174)	(1,616)
Cash and cash equivalents at start of period	4,578	6,282
Cash and cash equivalents at end of period	4,403	4,666

Continuing operations

Underlying tax rate

• The underlying tax rate, for continuing operations, is 23.3%
• Taxes were positively affected by NOK 38 million from recognition of deferred tax assets

Underlying tax rate	OB
(NOK million)	20220
Profit (loss) before taxes from continuing operations	321
Share of profit (loss) of joint ventures and associates	(2)
Basis for changes in unrecognized deferred tax assets	14
Gain on sale and remeasurement of subsidiaries, joint ventures and associates	2
Impairment losses
Non-deductible transaction-related costs	74
Adjusted tax base	416
Taxes	59
Reassessment of unrecognised deferred tax assets	38
Adjusted taxes	97
Underlying tax rate	23.3%

Basic share information

	A-share	B-share
Ticker
Oslo Stock Exchange	SCHA	SCHB
Reuters	SBSTA.OL	SBSTB.OL
Bloomberg	SCHA:NO	SCHB:NO
Number of shares	108,003,615	130,684,373
Treasury shares (23 October 2020)	3,543,657	1,324,477
Number of shares outstanding	104,459,958	129,359,896
Free float*	70%	76%
Share price (23 October 2020)	NOK 413.80	NOK 364.20
Average daily trading volume (shares)**	232K	154K
Total market cap (23 October 2020)	NOK 90.3 billion (USD 9.8 billion)

* Total number of shares excluding treasury shares and shares owned by Blommenholm Industrier AS

** YTD volume, Jan-Oct 2020, source: Oslo Børs ³⁴

Shareholders analysis

Rank	Name	A-shares	B-Shares	Total	% of S/O
1	Blommenholm Industrier AS	28,541,262	30,621,205	59,162,467	25.3%
2	Folketrygdfondet	9,065,282	11,406,925	20,472,207	8.8%
3	Fidelity Management & Research Company LLC	8,699,097	4,271,572	12,970,669	5.5%
4	Baillie Gifford & Co.	6,618,955	6,135,100	12,754,055	5.5%
5	Nya Wermlands Tidningen	4,000,000	4,000,000	8,000,000	3.4%
6	UBS AG London	3,510,574	3,500,000	7,010,574	3.0%
7	Adelphi Capital LLP	2,451,229	4,186,165	6,637,394	2.8%
8	The Vanguard Group, Inc.	3,085,725	2,933,023	6,018,748	2.6%
9	Alecta pensionsförsäkring, ömsesidigt	0	5,193,000	5,193,000	2.2%
10	Pelham Capital Ltd	0	4,024,634	4,024,634	1.7%
11	Storebrand Kapitalforvaltning AS	1,413,721	1,988,800	3,402,521	1.5%
12	KLP Forsikring	529,823	2,621,922	3,151,745	1.3%
13	Marathon Asset Management LLP	1,732,934	1,392,955	3,125,889	1.3%
14	DNB Asset Management AS	684,908	2,405,988	3,090,896	1.3%
15	Handelsbanken Asset Management	1,072,908	1,884,998	2,957,906	1.3%
16	Luxor Capital Group, L.P.	0	2,919,155	2,919,155	1.2%
17	Mitsubishi UFJ Trust and Banking Corporation	1,518,505	1,351,479	2,869,984	1.2%
18	BlackRock Institutional Trust Company, N.A.	16,915	2,708,029	2,724,944	1.2%
19	Goldman Sachs International	88,754	2,415,329	2,504,083	1.1%
20	Fidelity Institutional Asset Management	1,700,159	658,426	2,358,585	1.0%

The shareholder ID data are provided by Nasdaq OMX. The data are 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 or Schibsted can guarantee the accuracy of the analysis.

Source: Nasdaq OMX, VPS; Data as of 17 September 2020

Investor contact

Visit Schibsted's website schibsted.com

E-mail: ir@schibsted.com

Jann-Boje Meinecke VP, Head of IR +47 941 00 835

Malin Langtvet

IR Officer +47 916 86 710

Schibsted ASA Akersgata 55 / P.O. Box 490 Sentrum NO-0105 Oslo