ELÉOMETO SCHIBSTED ESTOR SEMINAR BARCELONA, 18 NOVEMBER 2014
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- Strategy update including new Joint
venture agreements
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- European Online $classifieds - positioned$ for future growth
- $3.$ Leboncoin.fr - solid market leader with good growth prospects
STRATEGY UPDATE
ROLV ERIK RYSSDAL, CEO AND TROND BERGER, CFO Barcelona, 18 November 2014
EMPOWERING PEOPLE IN THEIR DAILY LIFE
ENGANGING PEOPLE WORLDWIDE...
A GLOBAL LEADER IN ONLINE CLASSIFIEDS
SMART SERVICES FOR EVERYDAY LIVING
WORLD CLASS DIGITAL MEDIA HOUSES
... OPTIMIZING VALUE WITH NEW TOOLS
| A GLOBAL LEADER |
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SMART SERVICES |
WORLD CLASS |
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| IN ONLINE CLASSIFIEDS |
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FOR EVERYDAY LIVING |
DIGITAL MEDIA HOUSES |
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ADVANCED DATA
ANALYTICS |
CUSTOMER INSIGHTS |
PAYMENT SERVICES |
TECHNOLOGY
PLATFORMS |
ORGANISATION &
COMPETENCE |
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J SCHIBSTED MEDIA GROUP
A GLOBAL STRATEGY FOR GROWTH
JOINING FORCED WITH NASPERS IN SELECTED EMERGING MARKETS
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With one strong classifieds platform in these countries, we create more liquid
market places that benefit consumer |
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| $\overline{2}$ |
Share cost, expertise and people. This will accelerate the development of these
countries into vibrant classifieds markets |
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| 3 |
Enables us to focus even more
on product improvements which in the end will benefit consumers |
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Strengthens our mission of
"Empowering people in their daily life" |
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Consolidation benefits along several dimensions
Market leading positions in major geographies
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Population
(million) |
Internet
penetration |
GDP/capita |
| Malaysia |
30 |
67% |
10,514 |
| Vietnam |
93 |
44% |
1,911 |
| Indonesia JV |
253 |
28% |
3,475 |
| Thailand JV |
68 |
30% |
5,779 |
| Brazil JV |
203 |
54% |
11,208 |
| Bangladesh JV |
166 |
25% |
829 |
| Chile |
17 |
67% |
15,732 |
A GLOBAL LEADER IN ONLINE CLASSIFIEDS
PORTFOLIO WITH 43 SITES IN 34 COUNTRIES
S SCHIBSTED MEDIA GROUP
AMONG GLOBAL LEADERS IN ONLINE CLASSIFIEDS
Revenues last 12 months (million EUR)
SCHIBSTED MEDIA GROUP
GREAT POTENTIAL FOR GROWTH FOR EUROPEAN MARKET LEADERS WITH LOW MONETIZATION
| Market |
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Position
Generaars Real asops |
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Overall
traffic rank
in the
country 2 |
Internet users
(million) 4 |
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France |
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3 |
57.9 |
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Norway |
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3 3 |
4.6 |
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Sweden |
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$\overline{2}$ |
$1 - 2$ |
3 3 |
8.5 |
| 高 |
Spain |
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6 |
36.0 |
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Italy |
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9 |
39.5 |
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Austria |
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$1 - 2$ |
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4 |
6.5 |
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Ireland |
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$1 - 2$ |
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3 |
3.7 |
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Finland |
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$1 - 2$ |
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6 |
4.8 |
2) Page views, source Comscore 3) TNS Gallup and KIA Index. Facebook and Google not in the surveys, but estimated to have higher traffic. 4) Source: IDC
S SCHIBSTED MEDIA GROUP
SIGNIFICANT GROWTH POTENTIAL FOR ESTABLISHED LEADERS IN EUROPE
J. SCHIBSTED MEDIA GROUP
UNCERTAIN MACRO AND FREEMIUM AFFECTING FINN AND BLOCKET SHORT TERM GROWTH RATE
■ Finn.no and Blocket.se revenue trend from Q3 2014 expected to continue in Q4 2014 and into 2015
FIND Norway
- Low single digit revenue growth expected in 2015
- Soft macro affects recruitment volumes
- $\blacksquare$ Freemium strategy on generalist affects 2015 revenues with NOK 30 million
- Significant future potential in new market places and products/services
blecket Sweden
- $\blacksquare$ High single digit revenue growth expected in 2015
- Soft second hand car market
- Significant future potential in recruitment and real estate verticals and display advertising
SOLID GROWTH TRACK RECORD - FUTURE TARGET MAINTAINED:
15-20% REVENUE GROWTH TARGET MEDIUM TO LONG TERM
Revenue development, Online Classifieds (EUR million)
2015 growth expected slightly lower than target range with low single digit growth for Finn.no and high single digit growth for Blocket.se/Bytbil.se
Online revenue target based on consolidated operations and and proportional revenues in JVs and adjusted for currency fluctuations
S SCHIBSTED MEDIA GROUP
MEDIA HOUSES
■
$\mathbf{d}$
SCHIBSTED
MEDIA GROUP
INVESTOR SEMINAR 2014
EUROPEAN ONLINE CLASSIFIEDS - POSITIONED FOR FUTURE GROWTH
TERJE SELJESETH, CEO SCHIBSTED CLASSIFIED MEDIA Barcelona 18 November 2014
KEY TAKE-AWAYS
- Solid, well balanced portfolio of Online classifieds 2. Spain ready to start growing revenues and EBITDA $3.$ Italy on a great growth trajectory $-$ still focusing on traffic and revenue growth
SPAIN-WELL POSITIONED FOR GROWTH
←Ŀ
SCM SPAIN - WELL POSITIONED FOR GROWTH
The foundation for future growth in revenues and EBITDA is in place
SCM SPAIN – QUICK FACTS
- Revenues last 12 months 84.6 million EUR 2.4 per internet capita
- EBITDA EUR 16.5 million 20% EBITDA margin
- 64 million visits per month, reaching 25% of the Spanish population
- 760 employees
Revenues EBITDA
EBITDA margin
STRENGTHENED MANAGEMENT TEAM, LEVERAGING THE SCM EXPERIENCE BASE
New CEO, Frode Nordseth
- More than 10 years of executive experience from Finn.no
- New site managers from Blocket.se and Finn.no
- Streamlining the organization, adding key competence on sales, product development and technology
- 15% of organization is swapped with new competence
S SCHIBSTED MEDIA GROUP
Total Monthly Visits indexed (Oct 2012 - Oct 2014)
COCHES.NET – STRONG POSITION IN THE PROFESSIONAL CAR MARKET
- Schibsted cover 4,200 car dealers, of a market of approx 9,000 including small shops
- Editorial section supports a strong position on new cars and brand advertisement.
WELL POSITIONED GENERALIST
- Combined strong position in generalist
- To be strengthened through Milanuncios acquisition
- Some remedies expected for the car market to get approval from competition authorities
- Closing expected in Q4 2014
- 60% of Segundamano traffic from mobile
FOTOCASA.ES – SHARED MARKET LEADER IN REAL ESTATE
- Schibsted cover approx 10,000 real estate agents, of a market of around 15,000
- Strong in Barcelona, competition stronger in Madrid.
- International buyers become even more important.
INFOJOBS.NET – STRONG LEADER IN JOBS
- InfoJobs revenues returned to growth in Q2 2014
- 9% revenue growth in Q3 2014
- 19% growth in new sales to be translated to revenues in 2015
- Number of vacant positions on the site +45% Y/Y
SOLID DEVELOPMENT FOR INFOJOBS.NET-BACK TO GROWTH 2H 2014
Traffic development (million visits)
Registered unemployment*
Active job offers in Infojobs**
S SCHIBSTED MEDIA GROUP
THE FUNDAMENT FOR REVENUE AND EBITDA GROWTH IN 2015 AND BEYOND IS IN PLACE,
- Traffic growth reinstalled on key sites
- Milanuncios consolidation expected to close in Q4, will secure stronger reach
- Competent organization moving towards right size
- Spanish macro is improving
RECENT MARKETING INVESTMENTS YIELD EXTRA TRAFFIC AND REVENUE GROWTH
Total Monthly Visits indexed (Jan 2010 - Oct 2014)
Total Monthly Revenues indexed (Jan 2010 - Oct 2014)
Source: Internal data, indexation: Jan 2010 = 100
GENERALIST: ON WEB, SUBITO.IT HAS BUILT A LARGE GAP WITH EBAY CLASSIFIEDS PROPERTIES
GENERALIST: ON MOBILE IN 2014, SUBITO.IT HAD SO FAR 7 TIMES MORE APP DOWNLOADS THAN EBAY'S KIJIJI
Source: Distimo Note: Data for Apps of EbayAnnunci not available
VEHICLES: SUBITO.IT IS NOW IN PAR WITH AUTOSCOUT IN TRAFFIC AND CONTENT
Source: Audiweb (for Subito, only traffic from the vehicles section), Autobiz Investor Seminar, Barcelona, 18 November 2014
REAL ESTATE: BIG FIGHT AMONG THE VERTICALS; SUBITO.IT GAINING LEADERSHIP IN PRIVATE CONTENT
Unique visitors (Jan–Sep 2014, millions) 0,0 2,0 3,0 2,5 1,5 Jan Feb Mar Apr May Jun Jul Aug Sep Number of Ads (Sep'13-Sep'14, thousands) Subito.it Immobiliare.it Casa.it 333 651 517 61 132 Immobiliare.it Casa.it Subito.it 21 Distribution of Ads (Sep 2014) Private Agents 550 700 600 500 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 0 450 650 750 Subito.it Immobiliare.it Casa.it Engagement KPIs (Sep. 14) Time per Visitor PageViews per Visitor Subito.it (real estate) 20:13 42.1 Immobiliare.it 19:09 38.1 Casa.it 09:11 15.1 For Subito.it, only traffic in the "Real Estate" section is considered
Source: Audiweb (for Subito, only traffic from the real estate section), Autobiz Investor Seminar, Barcelona, 18 November 2014
DISPLAY ADVERTISING: SUBITO.IT IS GAINING MARKET SHARE IN A SLOW GROWING MARKET
Display Advertising market (bnUSD, eMarketer)
- Subito.it is starting to build a significant presence in the Display Advertising market in Italy
- While the overall market growth is rather low, Subito.it is growing at around 40% YoY and sees potential to further increase its market share
ITALY IS LESS MATURE THAN FRANCE
GDP per capita (thousand EUR 2013, Eurostat)
Internet population and penetration (million, eMarketer)
Digital Advertising market (bnUSD, eMarketer)
Retail Ecommerce sales (bnUSD, eMarketer)
SUBITO.IT ON TRACK FOR FURTHER GROWTH
- ■Further expansion of the team (tech, product, analytics)
- ■Continued focus on traffic and revenue growth, not EBITDA
- ■Continuous product improvements (particularly mobile)
- ■Sales growth to be driven by volumes, display market share and premium features
LEBONCOIN-SOLID LEADER WITH GOOD GROWTH PROSPECTS
$\mathbf{d}$ SCHIBSTED MEDIA GROUP
OLIVIER AIZAC CEO, Leboncoin.fr
ESTABLISHED LEADER IN FRANCE - SEVERAL GROWTH LEVERS IN YEARS TO COME
$\blacksquare$ Key takeaways
DIVERSIFIED REVENUE MODEL WITH BROAD GROWTH
Revenue model
- Free basic listings for private advertizers
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- Paid extra features and premium placements
- $\mathcal{B}_{\cdot}$ Insertion fees for car dealers and real estate agent sand other miscellaneous categories for professionals
- Display advertizing
Examples of generalist monetization
STRONG IN ALL CLASSIFIEDS VERTICALS
| Vertical |
Traffic (page
views) $*$ |
Number of
listings |
Size vs closest
competitor (page
views) $**$ |
| Generalist |
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N/A |
| Cars |
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3x LaCentrale |
| Real estate |
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2x SeLoger |
| Jobs |
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1.5x Cadremploi |
*) Source: Mediametrie **) Excluding govermental job portal.
CARS A LEADING POSITION IN THE CAR MARKET SINCE 2011
- $\blacksquare$ Went from free to paid listings for car dealers July 2011
- Leboncoin revenue share of professional car market 33%
- Close to 80% penetration among dealers
- Steady growth in volumes, outpacing competitors
- $\blacksquare$ Further potential to optimize price mix and upselling to current customers
Number of pro cars on the site
In addition, Leboncoin has 540,000 private cars on the site
S SCHIBSTED MEDIA GROUP
CARS CARS - AN EUR 120 MILLION MARKET FOR LISTINGS*
Leboncoin a strong leader in traffic
S SCHIBSTED MEDIA GROUP
■ Car market value approx EUR 120 million online - only listings
$\blacksquare$ In addition, significant potential in display advertising and services
Around 20,500 dealers, EUR 500 in advertising spent per dealer per month across media
REAL ESTATE CAPTURING THE REAL ESTATE POTENTIAL, STARTING AS OF 2015
- Real estate market EUR 250 million online, around EUR 400 million including print
- Around 26,000 agents, spending EUR 1,300 per month on marketing
- Consumer to consumer 30% of the total number of transactions
- Leboncoin covers around 18,000 agents. Stronger position in rural districts of France than in Paris
7 2 7 7 Leboncoin fr Real estate 3667 SeLoger Particulier a Particulier 1664 1655 Logic-immo.com 997 ParuVendu Immo 809 Explorimmo 740 AVendreALouer
Unique visitors/month on real estate sites (million)
September 2014, source: Mediametrie
REAL ESTATE GRADUAL RAMP UP OF REVENUES IN 2015 AND 2016
- Sales force built up during 1H 2014
- $\blacksquare$ Improved features launched and in the pipeline
- New local search, bigger pictures, alerts, maps
- P3 bundle agreement ends at the end of 2014
- P3 sold products will be online until end of 2015.
- Gradual transition during 2015 to stand-alone Leboncoin offering
- More than 3000 agents will be on stand alone contracts 1 January 2015. Gradual ramp up expected during 2015
Room for two strong players in the real estate market
S SCHIBSTED MEDIA GROUP
DISPLAY SUMMARY OPPPORTUNITY TO GROW SIGNIFICANTLY IN DISPLAY ADVERTISING
Top 6 reach in France
Web only
$\sqrt{$ Uuly 14) |
Rank |
Audience (0000) |
Reach (%) |
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| Google |
1 |
37 647 |
81,8 |
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| Facebook |
$\overline{2}$ |
26 488 |
57,6 |
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| YouTube |
3 |
24 558 |
53,4 |
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| Orange |
4 |
18 906 |
41,1 |
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| Wikipedia |
5 |
17519 |
38,1 |
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| Leboncoin. Fr. |
6 |
15743 |
34,2 |
mobi |
| PagesJaunes |
7 |
14956 |
32,5 |
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| Yahoo |
8 |
14817 |
32,2 |
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| Amazon |
9 |
14 251 |
31,0 |
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| Free |
10 |
13918 |
30,2 |
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■ Leboncoin among 3 largest channels for display advertising in France
- Display ad revenues $+40\%$ Jan-Sept 2014 (market grew 3%)
- Mobile, video and programmatic drives the market growth
- $\blacksquare$ Most of the market is local advertising where Google and Pagesjaunes are getting most of it. Still to be developed for LBC.
- $\blacksquare$ Future opportunities in ad tech and big data
IN SUMMARY SOLID PLATFORM WITH A CLEAR PATH TO INCREASED MONETIZATION NEXT FEW YEARS
S SCHIBSTED MEDIA GROUP
KEY TAKE-AWAYS
- Online classifieds and Media Houses form solid online growth engine in Scandinavia
- Well Established European online classifieds market leaders are key revenue growth drivers
- New Joint ventures considerably strengthens our Emerging markets positions