One Becomes Two: A Leading Nordic Digital Growth company and A Global Leader In Online Classifieds
18 September 2018
Today's presenters
Chair of the Board Ole Jacob Sunde
CEO Rolv Erik Ryssdal
A history of innovation, disruption and growth
Schibsted is the innovation-driven, consumer-centric media company which entered the emerging online classified space 15+ years ago, well before competitors, and established itself to become the global market leader
We form two strong, separately listed companies, which will optimize value creation based on distinct strategies
- A leading Nordic digital growth company
- Comprising Finn/Blocket/Tori, Publishing, Lendo and other personal finance assets as well as other consumer service services
- Long term active ownership in MPI
- Chair of the Board Ole Jacob Sunde
- CEO Kristin Skogen Lund
- CFO Trond Berger
- FY 2017 revenues NOK 12.7 bn (+2%), EBITDA NOK 2.2 bn (+12%)*
Schibsted MPI (preliminary name)
- A pure play global leader in online classifieds
- All Schibsted's marketplaces assets outside the Nordics
- Acting Chair of Interim Board Orla Noonan
- CEO Rolv Erik Ryssdal
- To be separately listed in 2019
- FY 2017 revenues NOK 4.8 bn (+21%), EBITDA NOK 1.1 (+55%)*
*) Footnote regarding the figures please refer to page 13. No adjustments related to Other/Headquarters are reflected, and the difference between the sum of the two entities and Schibsted Group is related to unallocated Other/Headquarters.
Kristin Skogen Lund appointed new CEO of Schibsted
- Currently Director General of the Confederation of Norwegian Enterprise (NHO)
- Previous experience:
- Executive Vice President of Telenor, responsible for Telenor Nordic & Digital
- CEO of Aftenposten
- CEO Scanpix Scandinavia
- Managing Director and Editor-In-Chief of SOL (Scandinavia Online)
- International management positions at Unilever and Coca-Cola
- Board member of Orkla and Ericsson
- MBA from INSEAD and a Bachelor's degree from the University of Oregon
Nordic digital growth company with focus on consumer services, and with ability to create new winners
- Reaching 79 and 82 percent of the population in Norway and Sweden respectively weekly1 across news, marketplaces and consumer services
- The third major player in digital advertising2
- Leveraging data across all sites to create supreme customer offerings
- High ambitions to incubate and develop new digital successes – Lendo is next in line
- Maximizing value and growth through close interaction between of Finn/Blocket, personal finance-assets like Lendo, and the publishing activities
- Strong financials
Schibsted has a unique customer proposition in the Nordics
We leverage our strong assets across the group to create new winners – currently focusing on Lendo and personal finance
- Significant changes in the finance market – new opportunities for agile players
- We will finance the next phase of growth for Lendo with 100 percent ownership
- Market leader in Scandinavia
- Launches planned in Poland, Denmark and Austria during 2018-2019
- New products in development e.g. B2B
- Portfolio of promising venture assets
- Bynk mobile first lender
- Hypoteket innovative mortgage play
Lendo Revenues (NOK million) and EBITDA-margin
MPI is a large, attractive player within online classifieds
Countries: France, Spain, Brazil, Italy, UK, Germany, Austria, Ireland, Hungary, Mexico, Chile, Colombia, Belarus, DomRep, Morocco, Tunisia
MPI positioned for a continued strong growth as a separate company – unlocking potential for M&A and consolidation
- Market leading positions with runway for growth in several attractive markets in Europe and LatAm
- Focus on profitability and cash flow
- Continued investments in product development, deepening vertical roots, improve liquidity
- Develop new models
- Technology convergence across sites
- No ownership restrictions increased flexibility for future strategic transactions and global expansion
- Schibsted will be long term active owner
MPI shares expected to start trading first half 2019
- The spin-off of MPI will be done primarily as a demerger
- Majority ownership by Schibsted
- The shares are expected to start trading first half 2019
- MPI will inherit Schibsted's dual share class structure initially
- Schibsted will support to collapse into only one share class in due course
- Simplified governance structure with no ownership or voting limitations in MPI
- Schibsted's ownership share and listing venue to be decided at a later stage
Schibsted will continue as a significant active owner in MPI
- Schibsted will maintain a significant ownership stake in MPI
- Initially a majority stake
- Schibsted will be an active owner
- Nordic classifieds will continue co-operating with MPI
- Arenas for best practice sharing
- Joint technology can be supplied both ways based on commercial SLAs
Revenue and EBITDA growth in Schibsted – driven by online classifieds and Growth
Key assets (mill NOK):
Note: Revenue and EBITDA of MPI is calculated by reducing the reported amounts of the current Marketplaces operating segment by revenues and EBITDA of marketplaces operations in Norway, Sweden and Finland. Revenue and EBITDA of Schibsted ex MPI is calculated by increasing the total of reported amounts of the current Publishing and Growth operating segments by the same amounts. No adjustments related to Other/Headquarters are reflected, and the difference between the sum of the two entities and Schibsted Group is related to Other/Headquarters, which is unallocated. No adjustments are made to reflect potential effects on reported revenues from changes to intragroup sales being eliminated within or between operating segments.
Solid revenue and EBITDA growth in MPI
Note: Revenue and EBITDA of MPI is calculated by reducing the reported amounts of the current Marketplaces operating segment by revenues and EBITDA of marketplaces operations in Norway, Sweden and Finland. Revenue and EBITDA of Schibsted ex MPI is calculated by increasing the total of reported amounts of the current Publishing and Growth operating segments by the same amounts. No adjustments related to Other/Headquarters are reflected, and the difference between the sum of the two entities and Schibsted Group is related to Other/Headquarters, which is unallocated. No adjustments are made to reflect potential effects on reported revenues from changes to intragroup sales being eliminated within or between operating segments.
Key take-aways
Strategic change allowing two new companies maximise value creation for shareholders, society, customers, users and partners
Schibsted: Nordic digital growth company with focus on consumer services, and with ability to create new winners
MPI: A fast-growing global leader in online classifieds with the ambition to drive further structural change on the global scene
APPENDIX
Planned holding structure
Planned holding structure