Adevinta — Earnings Release 2019

Oct 24, 2019

Q3 2019 Results

Rolv Erik Ryssdal, CEO Uvashni Raman, CFO Antoine Jouteau, CEO, Leboncoin Group

24 October 2019

Creating perfect matches on the world's most trusted marketplaces

Disclaimer

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Rolv Erik Ryssdal, CEO Overview

Q3 Financial Highlights

Continued good growth in the main market verticals

Verticals revenues 16%

France up 15%

Spain up 18%

OLX Brazil up 16% on a local currency basis

Total revenues 15%

Some improvement in advertising despite weak market

France up 17%

EBITDA 38% to €180 million to €54 million to €37 million

EBITDA margin up 5% - points to 30%

Cash flow 71%

Operating profit driving cash flow

All numbers on a proportionate basis incl JVs

France

Strong vertical performance boosts revenue growth

Core verticals up 15%, Adevinta France grew 17%

• Strong performance from core cars and real estate verticals
• Continuing advertising softness, but improving up 7% yoy

Product development further accelerated

• Traffic up 6%
• P2P transaction and delivery services accelerated resulting in promising boost to daily transactions

Total France (LBC incl. subs) EBITDA margin improved to 56%, up from 54% in Q2. LBC standalone at 58% margin

* The effect of IFRS 16 implementation on Operating expenses and EBITDA for France is €1.0 million in Q3 2019. Excluding the IFRS 16 effect EBITDA margin for France is 55% in Q3 2019

Spain

Despite softer markets, verticals continue to grow and deliver operational leverage

Total revenue growth of 13%, core verticals up 18%

• Cars and jobs performed well, driven by professionals
• Real estate muted against a backdrop of a softer market
• Advertising growth yoy up 1%

Product development further accelerated

• Traffic on strong upward trend, up 9%
  • Product development and improved focus on engagement through alerts, emails, and apps
  • Increased marketing and advertising has also fuelled growth, and led to record number of new candidates in jobs

Total Spain EBITDA margin improved to 35%, up from 32% yoy

* The effect of IFRS 16 implementation on Operating expenses and EBITDA for Spain is €0.7 million in Q3 2019. Excluding the IFRS 16 effect EBITDA margin for Spain is 34% in Q3 2019

Product enhancements and tech fueling top line growth

Revenues up 24% in local currency (up 29% in Euro)

• OLX up 26% on local currency basis
  • Cars and real estate with strong continued growth
  • Advertising up 11% (from negative yoy growth in Q2)
• Infojobs revenues grew 8% on local currency basis

Product development further accelerated in OLX

• Strong growth in car finance conversions, more banks being added
• Launched more mortgage financing options
• New listings grew 19% versus Q2 driven by optimized ad insertion flows

Total Brazil EBITDA margin 16% reflecting phasing in marketing and product and tech investment

Revenues EBITDA margin * The effect of IFRS 16 implementation on Operating expenses and EBITDA for Brazil is €0.3 million in Q3 2019. Excluding the IFRS 16 effect EBITDA margin for Brazil is 14% in Q3 2019

Global Markets

Trend of positive EBITDA and improving margins continues

Continued emphasis on developing core verticals across Global Markets with verticals revenues up 13%

Weakness in display advertising continues to impact performance in some markets

EBITDA performance continues its good performance, rising to €4.9 million, delivering positive EBITDA YTD of €9.4 million

* The effect of IFRS 16 implementation on Operating expenses and EBITDA for Global Markets is €0.8 million in Q3 2019. Excluding the IFRS 16 effect EBITDA margin for combined financial figures is 13% in Q3 2019

Global Markets

Key market update

Strong growth in car revenues based on product development for the quarter.

Subito platform has been revamped to deliver an improved verticalized experience.

Total performance negatively affected by volatile display advertising market.

Italy Willhaben Ireland Hungary Shpock

Good solid growth in verticals

Launched image-based search.

Lead generation being improved in verticals.

Real estate and cars have seen good progress.

Key updates have been improvements in the apps and in new homes on real estate vertical.

Engagement scores and traffic for cars all up.

Enhanced search functionality and scaling up of delivery services in consumer goods.

The Q2 roll-out of the Jofogas + Hasznaltauto bundle for car dealers has been sustained with good traction through Q3.

Transactional Strategy launched in Q4 2018.

Strong user retention and engagement continues as a particular strength with Shpock, allowing for improved monetization.

Financials

Uvashni Raman, CFO

Solid financial performance in Q3

Core classified revenues continued growth momentum, display advertising muted growth

Revenue growth driven by strong verticals

Revenues grow 15% overall in Q3

EBITDA improves 38%

Digital Tax in France

• Signed by President Macron on 24 July and enacted 30 September 2019
• French Tax Authorities (FTA) have not yet published administrative guidelines which define the scope of the taxable services
• Due to complexity of law the assessment of whether DST is applicable to Adevinta Group is surrounded by a high degree of uncertainty without proper guidelines.
• It's not very clear if all the services which the Schibsted Group (including Adevinta Group) provide to its users in France and other countries are to be considered within the scope of DST
• Adevinta's assessment is that it's more likely than not that DST is not applicable to Adevinta Group as the group's applicable worldwide revenue will be below threshold of EUR750M
• No provision has been raised
• Should the guidelines and interactions with the FTA conclude differently, the DST applicable to the Adevinta group, should not exceed €9 million for 2019. We will continue to work with the French tax authorities to obtain further clarification on this matter

Rolv Erik Ryssdal, CEO Outlook

Outlook

Unchanged – positive growth trajectory

Further develop leading positions with organic and inorganic portfolio growth and optimization

Good performance in and centrally core verticals to maintain 15% - 20% revenue growth (proportionate basis) in medium to long term

Accelerating verticalization across Global Markets portfolio for EBITDA growth

Continued focus on advertising revenues in weaker market

Maintain investment in product development locally

Adevinta France Update

Antoine Jouteau, CEO, Leboncoin Group

France - leboncoin group key highlights

Efficient and safe marketplaces in a fast-changing economy

Continue strong growth on RE & car increasing our market shares

Shift to transactional continues

Strong investment strategy (P&T) to deliver sustainable revenue growth and profitability

Acceleration in advertising to faster reach our ambition

leboncoin group's development is supported by positive underlying trends, leading to localised, sustainable and collaborative consumption

Development of the "Made in France" trend to support both local production and the French economy in a complicated social context

Increasing concern of the French population towards the impact of their consumption on the environment, leading to a more sustainable consumption

Rise of the collaborative and circular consumption, partly motivated by the will to increase purchasing power

=> Example: 2nd-hand fashion is booming with 40% of French people(1) buying used clothes

13 years after its creation, leboncoin Group has become a strong digital player

Source: (1) Médiamétrie - July 2019 (all categories / all devices); (2) Tableau (internal source) - average january to september 2019; (3) Excluding Real Estate, 2018 Archipel&Co impact study,

Priority #1 is to accelerate our product development with automation, transactional services and verticalization

Automation

Enhance user experience by developing machine learning in our customer journey

Acceleration of our transactional shift

Become a e-merchant referent in Consumer Goods, Holidays rental & Cars

Verticalization of our experience

Create unique experience for each universe with one single platform

Automation - We target a 100% data-driven product, automated & personalized to deliver the most relevant experience for each user

Transaction - Our transactional shift is going well and is currently being deployed to new verticals, with additional services

Verticalization - Based on our user data, we are creating a unique experience through verticalization and personalization

Adevinta France - Q3 results

Delivering strong performance in both revenue and profitability

Performance is supported by the development of our main verticals in very competitive markets

Adevinta France - Q3 results

Real Estate - Revenues yoy have increased by 16%, enabling us to maintain our leading position

Source: (1) Company in - Marketplaces revenue only (excl. advertising) / Total Pro + Private / LBC + AVAL (2017 inc. AVAL in Dec, 2018 & 2019 inc. AVAL); (2) Monthly average or revenue / # of Pro Customers only (excl. privates) / LBC + AVAL / inc. bundle for used goods but excl. New Construct°; 2019: Jan-Sep (3) Mediametrie - 2019 average Jan-Aug; (4) Autobiz - 2019 average from Jan-Sep online ads (private + pro) - sales & rental categ (excl. Office & retail); (5) Autobiz - 2019 from Jan-Sep average agents

Real Estate - We have reinforced our presence in urban areas with 49% in Paris penetration (+2pts yoy), and a national average up to 65%

New products & offers Our Strategy

Source: (1) Autobiz - August 2019

Cars - Solid growth continues (+19% yoy)

Source: (1) Company information - Marketplaces revenue only (excl. advertising) / Total Professional + Private / LBC inc. Paycar but excl. L'Argus Group; (2) Monthly average or revenue / # of professional customers only (excl. Private) / Including Car Equipment; 2019: january to september (3) Mediametrie - 2019 average from Jan-Aug; (4) Autobiz - 2019 average from Jan-Sep online ads (private + pro) - sales & rental categories (excl. Office & retail); (5) Autobiz - 2019 from Jan-Sep average agents

Cars - Consolidating our leading position

● UX Verticalization (criterias, search…) ● Integration of Argus features on LBC ● Development of C2C payment (with Paycar), guarantee, financing features ● Focus on added value to pros : new offer using data driven performance features (automatic bump…), new market insights tools for pros (dashboard,...) Adevinta France - Q3 results 32 New products and offers Our Strategy Improvement of activity report for pros New valuation tool for pros with alerts

Cars - Recent acquisition of Argus Group will help us fully cover automotive market needs for both professionals and privates

(exclusive editorial content, valuation tool…)

Source: (1) Groupe Argus internal information ; (2) Groupe Argus survey with 630 dealers in 2017

Transactional markets - Progressive switch with promising performance

Adevinta France - Q3 results

Seller side

Advertising - Strategy to provide a data-based offer and align with customers expectations

Revenue (1) - EUR M Our Advertising Strategy Mobile Display Leverage marketplaces Data User Centric YTD 2019 €51m (-1% Y/Y-1) Big targeted local native ads New Product & offers

Adevinta France - Q3 results

France - leboncoin group key highlights

Efficient and safe marketplaces in a fast-changing economy

Continue strong growth on RE & car increasing our market shares

Shift to transactional continues

Strong investment strategy (P&T) to deliver sustainable revenue growth and profitability

Acceleration in advertising to faster reach our ambition

Appendices

Shareholder analysis

Rank	Name	A-Shares	B-shares	Total	%
1	Schibsted ASA	200,102,292	203,477,833	403,580,125	59.3 %
2	Blommenholm Industrier AS	28,188,589	25,337,549	53,526,138	7.9 %
3	Fidelity Management & Research Company	9,952,030	13,257,605	23,209,635	3.4 %
4	Folketrygdfondet	7,726,190	14,267,186	21,993,376	3.2 %
5	York Capital Management L P.	5,143,560	12,625,647	17,769,207	2.6 %
6	Baillie Gifford & Co.	6,874,387	9,553,803	16,428,190	2.4 %
7	Adelphi Capital LLP	2,791,207	7,294,816	10,086,023	1.5 %
8	The Vanguard Group, Inc.	3,248,714	3,962,440	7,211,154	1.1 %
9	Alecta pensionsförsäkring, ömsesidigt	1,434,023	4,733,600	6,167,623	0.9 %
10	Pelham Capital Ltd	0	6,117,429	6,117,429	0.9 %
11	Capital Guardian Trust Company	0	5,784,641	5,784,641	0.8 %
12	Citigroup Global Markets	835,284	3,886,018	4,721,302	0.7 %
13	Goldman Sachs International	502,727	4,178,960	4,681,687	0.7 %
14	Alken Asset Management Ltd	1,930,835	2,527,421	4,458,256	0.7 %
15	Alfred Berg Kapitalforvaltning AS	2,143,562	2,272,120	4,415,682	0.6 %
16	JPMorgan Chase Bank GTS CL A/C Escrow Account	1,279,678	2,930,408	4,210,086	0.6 %
17	KLP Forsikring	1,016,274	3,075,264	4,091,538	0.6 %
18	FMR Investment Management (U.K.) Limited	2,779,200	949,930	3,729,130	0.5 %
19	Mitsubishi UFJ Trust and Banking Corporation	1,550,040	1,979,781	3,529,821	0.5 %
20	Storebrand Kapitalforvaltning AS	1,361,742	1,991,258	3,353,000	0.5 %

Shareholders	SCHA	SCHB
Number of shares	307,849,680	373,298,209
Shares owned by Adevinta	0	0
Shares outstanding	107,747,388	169,820,376
Share Price 21.10.19	102.0	101.0
Free float*	35%	45%
Average daily trading volume	265,400.7	429,376.0

Updated information and VPS register at: https://adevinta.com/ir/shareholders/

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 Adevinta share register. Whilst every reasonable effort is made to verify all data, neither Nasdaq OMX or Adevinta can guarantee the accuracy of the analysis.

Basic information

	A-share	B-share
Ticker
Oslo Stock Exchange:	ADEA	ADEB
Reuters:	ADEA.OL	ADEB.OL
Bloomberg:	ADEA:NO	ADEB:NO
Number of shares	307,849,680	373,298,209
Treasury shares (21 October 2019)	0	0
Number of shares outstanding	307,849,680	373,298,209
Free float*	35%	45%
Share price (21 October 2019)	NOK 102	NOK 101
Average daily trading volume (shares)**	265,401	429,376
Market Cap total (21 October 2019) NOK 69.1bn, €6.8bn, £5.8bn, US\$ 7.6bn

Investor information

Visit Adevinta's website www.adevinta.com

Jo Christian Steigedal

Adevinta ASA Akersgata 55, P.O. Box 490 Sentrum, E-mail: ir@adevinta.com

ir@adevinta.com +47 415 08 733