Adevinta — Interim / Quarterly Report 2020

May 5, 2020

Q1 2020 Interim Report May 5 2020

Adevinta Highlights Highlights of Q1 2020

Total revenues1 up 8% to €188 million (+10% at constant currency)

• Solid start to the year
• March performance significantly affected by COVID-19 situation

Online classifieds revenue grew 13%

• France up 24% (or 11% excl. l'Argus)
• Spain up 8%

Display advertising revenues decreased 5%

• Positive trend in Spain and France in Jan & Feb
• Italy significantly impacted

EBITDA1 margin down 5.9pts yoy

• Revenue drop in March in main operations due to COVID-19
• Dilutive impact of acquisitions in France
• Sustained investment in product development (at central and business level)

Product & technology achievements

• Improvement of user experience and engagement with rollout additional smart features
• Deployment of more efficient professional tools
• Strong focus on P2P transactions

Strong liquidity position to continue to invest for the LT

• €489m available liquidity at the end of March
• Further €225m term loan facilities raised in April to support Grupo ZAP acquisition

Rolv Erik Ryssdal, CEO

Heading into 2020, no one could have anticipated the global disruption we are facing now as a result of the Covid-19 pandemic. At Adevinta, our top priorities have been to ensure that our sites are fully operational, work proactively with our customers, and of course to ensure the health and safety of our employees.

We started the year with strong positive momentum. The classifieds revenues in our big European countries performed well as a result of our strong brands and the products we continously develop for our professional customers. We saw a more positive development in display advertisement, particularly in France where we switched adserver during February. We were happy to announce the acqusition of ZAP-VivaReal in Brazil, in line with our strategy of strengthening our position in our most important markets. We believe the combination of OLX and ZAP-VivaReal will be in a position to provide excellent products and services to buyers and sellers of real estate in Brazil.

The Covid-19 pandemic changed the business environment dramatically in all our markets during the month of March. Traffic went down as much as 40-50% in some countries, before recovering during April. Consequently, our revenues showed limited growth for the first quarter, and EBITDA margin was down 590 basis points year on year.

Looking ahead, we have limited visibility on how quickly the economic conditions in our markets will recover, but we are optimistic about our own opportunities. In April, we are seeing a significant improvement in key performance indicators across the board. We are closely following new consumer trends and user behaviours which will emerge, and already planning how we can adapt and benefit from these. We continue to invest in developing products and technology at full speed to further improve our offerings for our users and customers. I am confident that we can continue to expand our strong market positions and also seize new opportunities as they arise.

1 Proportionate basis incl JVs

For definition of EBITDA please see section Definitions and reconciliations. Adevinta implemented IFRS 16 from 1 January 2019.

Key financial numbers

Alternative performance measures (APM) used in this report are described and presented in the section Definitions and Reconciliations at the end of the report.

	First quarter		(€ million)	Full Year
yoy%	2019	2020		2019
8%	174.4		188.0 Operating revenues incl. JVs	739.5
-14%	49.7		42.6 EBITDA incl. JVs	206.1
	29%		23% EBITDA margin incl. JVs	28%
			Operating revenues - segments
19%	81.7		97.5 France	357.4
6%	43.8		46.4 Spain	182.0
-6%	20.5		19.3 Brazil	86.0
-6%	39.4		37.2 Global Markets	164.1
			EBITDA - segments
4%	45.1		47.0 France	191.3
8%	12.6		13.7 Spain	60.5
-49%	4.8		2.4 Brazil	6.0
-33%	2.9		2.0 Global Markets	15.7
			Cash flow
-16%	51.0		42.8 Net cash flow from operating activities	134.1

Key consolidated financial figures

	First quarter	(€ million)	Full Year
yoy%	2019	2020 Consolidated financial figures	2019
9%	160.2	174.5 Operating revenues - segments	680.3
19%	81.7	97.5 France	357.4
6%	43.8	46.4 Spain	182.0
-6%	20.5	19.3 Brazil	86.0
-6%	39.4	37.2 Global Markets	164.1
-53%	4.3	2.0 Other And Headquarters	12.8
5%	(29.5)	(27.9) Eliminations	(122.1)
-13%	46.0	40.1 Gross operating profit (EBITDA) - segments	199.5
4%	45.1	47.0 France	191.3
8%	12.6	13.7 Spain	60.5
-49%	4.8	2.4 Brazil	6.0
-33%	2.9	2.0 Global Markets	15.7
-66%	(12.1)	(20.0) Other And Headquarters	(61.0)
33%	(7.4)	(5.0) Eliminations	(13.0)
		Proportional ownership view
8%	174.4	188.0 Operating revenues incl. JVs	739.5
-14%	49.7	42.6 EBITDA incl. JVs	206.1
	29%	23% EBITDA margin incl. JVs	28%

Operational Development

Commentary and financial numbers in the Operational Development section of this report refers to proportionate numbers including JVs.

Adevinta Overview

		First quarter	(€ million)	Year
yoy %	2019		2020 ADEVINTA	2019
9%	160.2		174.5 Operating revenues	680.3
-5%	14.1		13.5 Proportional revenues from JVs	59.2
8%	174.4		188.0 Operating revenues incl. JVs	739.5
-13%	46.0		40.1 EBITDA	199.5
-12%	49.6		43.4 - of which Developed phase	209.4
7%	(3.5)		(3.3) - of which Investment phase	(9.8)
	29%		23% EBITDA margin	29%
-33%	3.7		2.5 Proportional EBITDA from JVs	6.5
-14%	49.7		42.6 EBITDA incl. JVs	206.1
	29%		23% EBITDA margin incl. JVs	28%

Revenues, including JVs, saw decelerated growth to 8% in Q1 compared to Q1 2019 (or 2% excluding L'Argus) strongly impacted by COVID-19 in March in all of our markets. The revenue growth rate was nevertheless driven by sustained performance at the beginning of the year in classifieds in France and Spain, as well as contribution from acquisitions, specifically L'Argus. Brazil revenues were up 8% year-on-year in local currency but negatively affected by foreign exchange variation. Classifieds revenue grew 13% (or 7% excluding l'Argus), while advertising revenue decreased by 5% (positive trend in January and February accumulated compared to the prior year was offset by strong drop in March).

Gross operating profit (EBITDA) decreased by 14% yoy due to investments in product & technology (at central and business levels), set up of central functions and corporate post IPO (in line with previously communicated expectations), and impact of COVID-19 in our main markets.

France

		First quarter	(€ million)	Year
yoy %	2019		2020 France	2019
19%	81.7		97.5 Operating revenues	357.4
38%	36.6		50.6 Operating expenses	166.1
4%	45.1		47.0 EBITDA	191.3
	55%		48% EBITDA margin	54%

Revenues in France grew by 19% in the first quarter (or 7% excluding L'Argus), significantly impacted by the challenging business environment implied by the COVID-19. Total revenues from classifieds grew 24% compared to last year (including contribution from L'Argus), driven by cars and real estate markets. The first two months of the year showed good performance in classifieds (up 15% excluding l'Argus) and improving trends in advertising. The lockdown of the country in March mostly impacted display advertising and revenues directly subject to content volumes.

EBITDA margin has decreased 7 pp due to the dilutive impact of acquisitions and investment in the transactional model ahead of revenue generation. Excluding acquisitions, core LeBonCoin margin remains high at 53% despite shortfall in March revenues and high investment in marketing and product and tech.

Traffic continued to develop positively until the lockdown of the country due to COVID-19 when it dropped significantly. Nevertheless, we continued to deliver leads to our customers. During April we saw an improvement in operational indicators with close to full recovery in traffic.

In Q1 we achieved significant milestones in product and technology development, notably around P2P transactions (pricing recommendation tool and pre-filling feature, messaging service for professionals, ... ), automation and user experience in order to boost new listings. We have launched a new performance offer for car dealers that allows us to improve ad efficiency through automatic ad bumps based on artificial intelligence.

Spain

		First quarter	(€ million)	Year
yoy %	2019		2020 Spain	2019
6%	43.8		46.4 Operating revenues	182.0
5%	31.2		32.7 Operating expenses	121.5
8%	12.6		13.7 EBITDA	60.5
	29%		30% EBITDA margin	33%

Revenue growth in Spain decelerated to 6% in Q1 compared to Q1 2019 significantly impacted by the COVID-19 effect in March. Classifieds revenues grew 8% compared to Q1 2019 due to the slowdown in the macroeconomic environment, accelerated by the lockdown of the country since March. Cars performance continued to be strong in January and February thanks to both customer acquisition and ARPU. Development in real estate was also positive but softening quarter on quarter as a consequence of the contraction in the number of house transactions. Jobs was highly impacted in March by the downturn in signed employment contracts.

Display advertising grew 3% year-over-year (though representing a limited share of total revenues). The accelerated growth seen in the first two months of the year across all the brands was offset by the COVID-19 effect in March.

Traffic developed positively until the start of the lockdown and has already started a good recovery compared to pre COVID-19 levels.

The EBITDA margin improved by 0.7pp. Reductions in marketing investment as part of the measures taken due to the COVID-19 impact partly offset the drop of revenues in March.

In Q1, we have kept the focus on our strategy of improving our products, developing key convergence projects and enhancing our monetisation. We have launched several product innovations, released upgraded functionalities and optimised platforms performance in jobs. We have prioritised and accelerated the development of a payment and delivery solution in Milanuncios.

Brazil

		First quarter	(€ million) OLX Brazil 100%	Year		First quarter (LC million)
yoy %	2019		2020 Brazil	2019	yoy %	2019	2020
-6%	20.5		19.3 Operating revenues	86.0	8%	87.6	94.3
8%	15.7		16.9 Operating expenses	80.0	23%	66.6	82.2
-49%	4.8		2.4 EBITDA	6.0	-43%	21.0	12.1
	24%		13% EBITDA margin	7%		24%	13%

Strong depreciation of brazilian real against euro compared to Q1 2019 impacted total revenue growth. Operational revenue grew 8% in local currency.

OLX.com.br in Brazil, which is a 50% owned joint venture, delivered revenue growth in Q1 of 8% in local currency, suffering a deceleration in March due to COVID-19. We saw good development in advertising in apps while real estate and car verticals were hampered by a slowdown in supply after the lockdown was decreed. Deployment of a transactional model continues to position ourselves for future growth.

Traffic was significantly impacted in the first weeks following the lockdown but already fully recovered to pre COVID-19 levels.

Infojobs.com.br in Brazil increased its operational revenues by 4% in local currency.

In Q1, cumulative EBITDA decreased by €2 million when compared to Q1 2019. This is the result of investment in product and tech resources, reclassification of withholding tax into opex, higher hosting costs denominated in US dollars that were impacted by unfavorable foreign exchange evolution and lower-than-expected revenue growth despite solid cost control measures.

With the acquisition of GrupoZap, we will strengthen our position in real estate. The assets' complementarity will allow us to offer our clients broader access to properties inventory. We will be able to accelerate innovation and investment in product and technology and to expand our offering with adjacent services. We will also continue to seek for improved safety and convenience for the users, and to develop a transactional horizontal experience with wallet, escrow, delivery and financing.

Global Markets

		First quarter	(€ million)	Year
yoy %	2019		2020 Global Markets	2019
-6%	39.4		37.2 Operating revenues	164.1
-3%	36.4		35.2 Operating expenses	148.4
-33%	2.9		2.0 EBITDA	15.7
	7%		5% EBITDA margin	10%

In order to fully align Global Markets segment reporting with Management reporting and to create full consistency between the Brazil and Global Markets segments when it comes to how Joint Ventures are presented, Willhaben revenues and EBITDA are included on a 100% basis for both periods. For more details (including reconciliation information and historical numbers, please refer to the Investors section of the Adevinta website)

The Global Markets portfolio saw negative revenue growth of -6% compared to Q1 2019 (or -4% at constant currency) with a significant impact from the COVID-19 situation in March. Classifieds revenue grew 10% in January and February. Revenues in advertising were declining year-on-year despite improving trends in January and February.

EBITDA decreased by €0.9 million year-on-year to €2.0 million in Q1 as overall cost reductions were unable to offset the revenue decline. The main downsides were in Italy which was severely impacted by the COVID-19 situation in March and in Shpock with the impact of the planned transformation to a transactional model.

In Italy, we have seen good development in cars since the beginning of the year and effective measures to mitigate the decline in display advertising. However, from the lockdown at the beginning of March, the fall in display advertising accelerated due to significant drop in traffic and the reduction in advertisers' budgets.

In Willhaben, while there has been some adjustment in project development priorities, we continue to focus on faster delivery of user value, improving our self service offering for SMEs and the move towards transactions.

In Ireland, we focused on preserving relationships with the customers. Many new launches were deployed such as booking features on DoneDeal to allow dealers to still sell during the lockdown and a free digital lease system for all agents.

In Hungary and Shpock we have expanded our transactional footprint in Consumer Goods by adding new delivery solutions. We have seen accelerated growth in on-site transactions in both. We've also rolled out door-to-door delivery at Shpock during March with great user adoption.

Traffic was significantly impacted across all geographies but started to recover in April, with Willhaben and Hungary even reaching better than pre COVID-19 levels.

Investment phase portfolio

The investment phase portfolio sits predominantly in our Global Markets segment. In this portfolio we continue to look at different models to develop these early stage assets.

The EBITDA of operations in the Investment phase amounted to €(3.3) million in Q1 compared to €(3.5) million in Q1 2019. Besides the negative impact of COVID-19, strategy adjustment in Mexico in 2019 led to significant reductions in marketing and personnel costs. Investment in the transactional shift in Shpock continued through Q1 where the increase of transactions is gaining momentum, however impacting negatively advertising revenues.

Outlook

The world is going through an extraordinary and unprecedented crisis. The countries in which we operate have already turned into recession and the time horizon and pace of recovery are unpredictable. This will have an impact on growth in our core vertical's end markets, including real estate, motors and jobs, as well as on display advertising. In the coming quarters, this will continue to affect the Group's revenues and profits. Actual impact will vary with the pace of activity resumption. The second quarter of 2020 will likely bear the strongest hit with half of the quarter spent under full lockdown in the group's main markets, despite much better trends in key operational indicators as from mid-April.

As activity resumes we expect our clients and users to look for the most efficient ways to advertise products. With strong brands, traffic leadership, enhanced products and long-lasting business relationships, Adevinta will be well positioned to accompany them and to benefit from the associated recovery in their operations.

Adevinta remains focused on driving initiatives to increase market share of traffic, listings and eventually monetisation and profitability. We will also continue to extract the untapped potential that lies in our core verticals.

The group expects the current crisis to drive changes in the way people behave and consume. This will create new opportunities as this may lead to acceleration of online penetration, increasing need for safer and more convenient user digital journeys and rising attractiveness of second-hand products. The group continues to invest in product and technology with a long-term view and manages allocation of resources accordingly, with strong focus on transactional model, digital user experience, value-added pieces to existing offering, professional tools improvement, data and machine learning.

Adevinta endeavors to maintain and extend its favorable competitive positions in several markets while also capturing further core and adjacent growth opportunities. The company aims to be an active player in industry consolidation with a view to strengthening its core segments and optimising the overall mix and focus of its marketplaces portfolio.

While uncertainty will remain in the near term due to the COVID-19 impact on the macro economy, the group is confident in its sustainable growth profile and maintains its medium- to long-term target to grow annual revenues by 15-20% (on a proportionate basis including JVs and including bolt on acquisitions).

Inherent operational leverage remains strong in some geographies while the group will continue to invest in product & tech and further deploy the transactional model to tap into new revenue streams and create value over time. The long-term EBITDA margin is targeted to grow to above 40%. When evaluating new business opportunities, we are prioritising total profit growth and looking at opportunities from a Net Present Value perspective. The transactional model is a prime example of an exciting new business opportunity, but with lower margins than traditional verticals. We will increasingly seek to validate the value creation opportunity of deploying such models across the portfolio and will calibrate appropriate levels of resources and investment accordingly.

Due to the lack of agreement at the EU level, a digital service tax (DST) of 3% has been implemented in France and Italy and proposed in Spain. Though surrounded by a high degree of uncertainty, our view at this juncture is that the French DST is not applicable to Adevinta, hence no provision has been made. The interaction and consultation with the French tax authorities continues. Please refer to the Group Overview section and note 5 of the consolidated financial statements for further information.

Group Overview

Operating profit

Revenue increased by 9% in Q1 2020, compared to Q1 2019, driven by sustained performance in France and Spain in January and February, partly offset by the negative impact of the COVID-19 situation in March. L'Argus acquisition in France also contributed positively to revenue growth.

Operating expenses increased by 18% in Q1 2020, compared to Q1 2019, driven by (i) the dilutive impact of l'Argus acquisition, (ii) further investment in product and tech to support current product enhancement as well as development of transactional model (ahead of revenue generation), (iii) setting up corporate structures due to IPO in Q2 2019 (in line with previouslycommunicated expectations) and (iv) the negative impact of the COVID-19 situation. Gross operating profit (EBITDA) decreased by 13%.

Share of profit (loss) of joint ventures and associates decreased from €4.2 million in Q1 2019 to €0.4 million in Q1 2020 mainly explained by lower results in Indonesia and Brazil. Other income and expenses in Q1 2020 was €(1.1) million (€(1.7) million in Q1 2019). Other income and expenses are disclosed in note 3.

Operating profit (loss) in Q1 2020 amounted to €25.7 million (€37.0 million in Q1 2019). Please also refer to note 2 to the condensed consolidated financial statements.

Net profit and earnings per share

Financial expenses include a €(48.5) million foreign exchange loss, mainly due to the depreciation of the BRL against the EUR (compared to a €2.9 million foreign exchange gain in Q1 2019) and mostly driven by a change in fair value of derivatives amounting to €(42.0) million. Net financial items are disclosed in note 4 to the condensed consolidated financial statements.

The underlying tax rate has increased from 28.2% in full year 2019 to 30.8% in Q1 2020. In 2019 the underlying tax rate was positively impacted by the application of previous year's tax losses related to some subsidiaries in France (excluding the effect of such tax loss compensation, the underlying tax rate for 2019 would have been 32.7%). The reported tax rate is (48.2%) in Q1 2020, compared to 38% in Q1 2019.

Basic earnings per share in Q1 2020 is €(0.05) compared to €0.03 in Q1 2019. Adjusted earnings per share in Q1 2020 is €(0.05) compared to €0.04 in Q1 2019.

Financial position

The carrying amount of the Group's assets decreased by €36.1 million to €2,083.7 million during 2020 and the Group's net interest-bearing debt decreased by €31.7 million to €98.5 million (see specification in Definitions and reconciliations below). The Group's equity ratio is 68% as at 31 March 2020, compared to 73% at the end of 2019. The decrease in the carrying amount of the Group's assets is mainly driven by the reduction in Investments in joint ventures and associates as well as Intangible assets from business combinations in foreign currency (mainly BRL and CLP), when being translated to €.

The right-of-use assets and lease liabilities (included in other non-current liabilities) have increased by €44.8 million in Q1 2020 mainly due to a new office lease agreement entered into in France.

As a result of the agreement entered into by OLX Brazil to acquire Grupo Zap in Brazil for about R\$2.9 billion which will be funded equally by each joint venture partner, Adevinta has entered into a series of derivative instruments to hedge the foreign currency exposure of the firm commitment of the Grupo Zap acquisition by locking the funding amount in €. The depreciation of the BRL against the € has resulted in a change in fair value of those derivatives amounting to €(42.0) million, which has increased current liabilities related to financial derivatives by the same amount.

On 25 February 2020, Adevinta refinanced its existing €300 million bank facility with €600 million multi-currency term loan and revolving credit facilities. The facilities include an accordion increase option, which provides flexibility for the parties to agree an additional €120 million during the term of the facilities. The revolving credit facility has a tenor of five years with two oneyear extension options, whilst the term loan component has a tenor of three years. The term loan was drawn in NOK and converted into € through a cross-currency swap and variable interest rate was swapped to fixed interest rate. It was drawn by the NOK equivalent to €200 million and the proceeds were used to cancel the old facility. As a result of the depreciation of the NOK against the € in March 2020 the non-current interest-bearing debt has decreased by €13.2 million. This effect has been offset by an increase in other non-current liabilities of €13.4 million related to the fair value change of the swap derivative.

Cash flow

Net cash flow from operating activities was €42.8 million for the first quarter of 2020, compared to €51.0 million within the same period in 2019. The decrease is primarily related to the decrease in operating profit.

Net cash outflow from investing activities was €(19.5) million for the first quarter of 2020, compared to €(15.9) million within the same period in 2019. The increase is mainly due to the acquisition of subsidiaries and increased capital expenditure. Net cash outflow from financing activities was €(4.3) million for the first quarter of 2020, compared to €(37.3) million within the same period in 2019. The decrease is primarily related to the fact that in the first quarter of 2019 Adevinta increased the ownership interest in Spain to 100% which was partly offset by net financing from Schibsted.

Digital services tax (DST)

The French DST was enacted during 2019. Due to the complexity of the law including the scope of the taxable services, the assessment of whether DST is applicable to Adevinta is surrounded by a high degree of uncertainty. However, management currently assesses that it is less likely than not that French DST is applicable to Adevinta and hence no provision has been recognised for DST as per 31 March 2020. Please see note 5 to the condensed consolidated financial statements for further information.

During 2019 Italy approved DST legislation applicable as from January 2020. The DST will levy a 3% tax over certain digital services for groups with worldwide revenue above €750 million and Italian revenues applicable to DST above €5.5 million, with payment expected to take place in 2021. Management has assessed that Italian DST, which differs in definition and scope from the French DST, is applicable to Adevinta and hence a provision has been recognised as per 31 March 2020, but the impact is not expected to be material for Adevinta in 2020.

In February 2020 the Spanish government has approved a draft legislation to impose a 3% tax over certain digital services. The draft bill will be sent to the parliament for approval. The draft legislation would be applicable to groups with worldwide revenue above €750 million and Spanish revenues applicable to DST above €3 million. Management is analysing the potential impact on Adevinta of the DST draft bill.

Agreement to acquire Grupo ZAP

In March 2020, OLX Brazil joint venture has agreed to acquire Grupo ZAP, a leading online classifieds site for real estate operating in Brazil, for approximately €580 million as of at the time of signing of the stock purchase agreement. At signing, Adevinta entered into a deal contingent hedge to fix the purchase price in € and eliminate the currency risk. The transaction will be subject to the approval by Brazil's Antitrust Agency (CADE), a process that can take several months to complete. In the meantime, both businesses will continue to operate independently.

COVID-19

The COVID-19 outbreak is currently affecting the world economy negatively. Adevinta is monitoring the development, including updating risk assessment and measures. In the near term, financial performance will be affected negatively, but it is still too early to predict the full impact that COVID-19 will have on the business.

Reduced revenue due to the COVID-19 pandemic is an impairment indicator. Based on current estimates, no further impairments have been identified. Adevinta will continue to assess the impact to the business should the pandemic extend beyond our current estimates and will apply the appropriate assumptions for calculating the recoverable amount for fixed and intangible assets, including goodwill.

Adevinta had at the end of March 2020 low net interest-bearing debt and €489.5 million total liquidity available. In April 2020 Adevinta expanded its liquidity reserve with additional €225 million secured through bilateral facilities with partner banks to support the closing of the Grupo Zap acquisition announced earlier in February. Adevinta still considers liquidity and refinancing risk to be low.

Condensed Consolidated Financial Statements

Condensed consolidated income statement

	First quarter		Year
€ million	2020	2019	2019
Operating revenues	174.5	160.2	680.3
Personnel expenses	(69.6)	(55.5)	(234.8)
Other operating expenses	(64.8)	(58.7)	(246.0)
Gross operating profit (loss)	40.1	46.0	199.5
Depreciation and amortisation	(13.7)	(11.2)	(45.3)
Share of profit (loss) of joint ventures and associates	0.4	4.2	5.9
Impairment loss	-	(0.3)	(24.6)
Other income and expenses	(1.1)	(1.7)	(12.8)
Operating profit (loss)	25.7	37.0	122,8
Net financial items	(50.6)	(0.2)	(6.1)
Profit (loss) before taxes	(24.9)	36.8	116.7
Taxes	(12.0)	(13.8)	(49.6)
Profit (loss)	(36.9)	23.0	67.1
Profit (loss) attributable to:
Non-controlling interests	(0.8)	0.5	3.1
Owners of the parent	(36.1)	22.5	64.0
Earnings per share in €:
Basic	(0.05)	0.03	0.09
Diluted	(0.05)	0.03	0.09

Condensed consolidated statement of comprehensive income

		First quarter	Year
€ million	2020	2019	2019
Profit (loss)	(36.9)	23.0	67.1
Remeasurements of defined benefit pension liabilities	-	-	0.3
Income tax relating to remeasurements of defined benefit pension liabilities	-	-	(0.1)
Items not to be reclassified subsequently to profit or loss	-	-	0.2
Exchange differences on translating foreign operations	(83.1)	9.7	(5.3)
Net gain/(loss) on cash flow hedges	(0.4)	-	-
Items to be reclassified subsequently to profit or loss	(83.5)	9.7	(5.3)
Other comprehensive income	(83.5)	9.7	(5.1)
Comprehensive income	(120.4)	32.7	62.0
Comprehensive income attributable to:
Non-controlling interests	(1.1)	0.5	3.0
Owners of the parent	(119.3)	32.2	59.0

Condensed consolidated statement of financial position
--------------------------------------------------------	--	--	--

	31 March	31 December
€ million	2020	2019
Intangible assets	1,386.8	1,394.8
Property, plant and equipment and right-of-use assets	122.4	85.9
Investments in joint ventures and associates	306.3	381.1
Other non-current assets	21.8	16.4
Non-current assets	1,837.3	1,878.1
Trade receivables and other current assets	156.9	169.9
Cash and cash equivalents	89.5	71.8
Current assets	246.4	241.7
Total assets	2,083.7	2,119.8
Equity attributable to owners of the parent	1,405.1	1,524.4
Non-controlling interests	15.4	14.4
Equity	1,420.5	1,538.8
Non-current interest-bearing borrowings	187.8	201.7
Other non-current liabilities	202.8	147.9
Non-current liabilities	390.6	349.5
Current interest-bearing borrowings	0.2	0.3
Other current liabilities	272.4	231.2
Current liabilities	272.6	231.5
Total equity and liabilities	2,083.7	2,119.8

		Condensed consolidated statement of cash				flow
--	--	------------------------------------------	--	--	--	------

		First quarter	Year
€ million	2020	2019	2019
Profit (loss) before taxes	(24.9)	36.8	116.7
Depreciation, amortisation and impairment losses	13.7	11.6	69.9
Share of loss (profit) of joint ventures and associates, net of dividends received	(0.4)	(4.2)	(5.9)
Dividends received from joint ventures and associates	0.0	0.0	1.1
Taxes paid	(0.6)	(12.4)	(63.6)
Sales losses (gains) non-current assets and other non-cash losses (gains)	0.0	(0.0)	(0.3)
Net loss on derivative instruments at fair value through profit or loss	42.0	0.0	0.0
Other non-cash items and changes in working capital and provisions	13.0	19.3	16.3
Net cash flow from operating activities	42.8	51.0	134.1
Development and purchase of intangible assets and property, plant and equipment	(11.3)	(9.6)	(48.5)
Acquisition of subsidiaries, net of cash acquired	(7.5)	0.0	(78.8)
Proceeds from sale of intangible assets and property, plant and equipment	(0.0)	0.2	(0.0)
Proceeds from sale of subsidiaries, net of cash sold	0.0	0.0	0.0
Net sale of (investment in) other shares	(0.7)	(6.1)	(10.7)
Net change in other investments	(0.0)	(0.3)	0.9
Net cash flow from investing activities	(19.5)	(15.9)	(137.0)
Net cash flow before financing activities	23.3	35.2	(2.9)
Net change in interest-bearing loans and borrowings	(0.7)	0.0	198.8
Change in ownership interests in subsidiaries	0.0	(100.1)	(100.2)
Capital increase	0.0	0.0	7.9
IFRS 16 lease payments	(3.6)	(2.9)	(12.8)
Dividends paid to non-controlling interests	0.0	0.0	(3.6)
Net financing from (to) Schibsted ASA	0.0	65.8	(70.9)
Net cash flow from financing activities	(4.3)	(37.3)	19.2
Effects of exchange rate changes on cash and cash equivalents	(1.3)	0.0	0.3
Net increase (decrease) in cash and cash equivalents	17.7	(2.1)	16.6
Cash and cash equivalents as at 1 January	71.8	55.1	55.1
Cash and cash equivalents as at 31 March	89.5	53.0	71.8

Condensed consolidated statement of changes in equity

€ million	Equity attributable to owners of the parent	Non-controlling interests	Equity
Equity as at 31 December 2018	1,317.8	13.9	1.331,7
Change in accounting principle IFRS 16	(0.7)	0.0	(0.7)
Equity as at 1 January 2019	1,317.1	13.9	1,331.0
Comprehensive income	59.0	3.0	62.0
Transactions with the owners	148.4	(2.6)	145.8
Capital increase	144.7	-	144.7
Share-based payment	2.0	-	2.0
Dividends paid to non-controlling interests	-	(3.6)	(3.6)
Business combinations	-	0.2	0.2
Changes in ownership of subsidiaries that do not result in a loss of control	(1.9)	0.8	(1.1)
Group contributions and dividends	3.6	-	3.6
Equity as at 31 December 2019	1,524.4	14.4	1,538.8
Comprehensive income	(119.3)	(1.1)	(120.4)
Transactions with the owners	-	2.1	2.1
Share-based payment	2.1	-	2.1
Changes in ownership of subsidiaries that do not result in a loss of control	(2.1)	2.1	-
Equity as at 31 March 2020	1,405.1	15.4	1,420.5

€ million	Equity attributable to owners of the parent	Non-controlling interests	Equity
Equity as at 31 December 2018	1,317.8	13.9	1,331.7
Change in accounting principle IFRS 16	(0.7)	0.0	(0.7)
Equity as at 1 January 2019	1,317.1	13.9	1,331.0
Comprehensive income	32.2	0.5	32.7
Transactions with the owners	(1.4)	0.3	(1.1)
Share-based payment	(1.0)	0.0	(1.0)
Changes in ownership of subsidiaries that do not result in a loss of control	(0.4)	0.3	(0.1)
Equity as at 31 March 2019	1,347.8	14.8	1,362.6

Notes

Note 1. Corporate information, basis of preparation and changes to accounting policies

The Adevinta Group was established 9 April 2019 following demergers of Schibsted Multimedia AS and Schibsted ASA and the consequential transfer of Schibsted's online classifieds operations outside the Nordics to Adevinta ASA. The company was listed on the Oslo Stock Exchange on 10 April 2019. Schibsted has retained a majority interest of 59.28% in Adevinta ASA.

Adevinta presented combined financial statements up and until Q1 2019. IFRS 10 requires a parent company to directly or indirectly control its subsidiaries at the balance sheet date in order to prepare consolidated financial statements. Adevinta ASA did not obtain such control until 9 April 2019. Following the demergers described above, Adevinta ASA obtained control of the subsidiaries and ownership interests comprising the Adevinta Group and reports consolidated financial statements according to IFRS 10. The condensed consolidated interim financial statements comprise the Group and the Group's interests in joint ventures and associates. The interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting.

The accounting policies adopted are consistent with those followed in preparing the Group's annual financial statements for 2019.

The consolidated interim financial statements are unaudited. All amounts are in € million unless otherwise stated. Tables may not summarise due to rounding.

Operating segments

Management has assessed operating segments according to IFRS 8 Segments. Based on the internal reporting structure, Adevinta has identified France, Spain, Brazil and Global Markets as operating segments, which is in line with how the business will continue to be developed and managed by the chief operating decision maker.

As announced 21 April 2020, Adevinta ASA has implemented minor changes in the financial reporting structure as of Q1 2020. The changes are made to fully align Global Markets segment reporting with Management reporting. Additionally, the change creates full consistency across segments when it comes to how joint ventures are presented. The main changes consist of including 100% of the Austrian 50% owned joint venture (willhaben) in the revenue and EBITDA of the Global Markets segment (100% of the revenue and EBITDA of willhaben is removed in Eliminations), fully consistent with how OLX Brazil is presented. This implies that Group consolidated figures are unchanged. Also, certain expenses related to Business Area management of the Global Markets segment have been moved from the HQ/Other segment to Global Markets.

In the Consolidated Income Statement and Consolidated Statement of Financial Position of Adevinta, OLX Brazil and willhaben are accounted for using the equity method of accounting. The segment figures for Brazil and for willhaben in Global Markets are presented on a 100% basis to reflect how the business and performance is monitored by management. Subsequent adjustments are included in Eliminations to get to the equity method of accounting in the Consolidated Income Statement and Consolidated Statement of Financial Position.

Note 2. Operating Segment Disclosures

Management has assessed operating segments according to IFRS 8 Segments. Based on the internal reporting structure, Adevinta has identified France, Spain, Brazil and Global Markets as operating segments.

France comprises primarily leboncoin (including Kudoz, which was integrated in May 2019), MB Diffusion, Avendrealouer, Videdressing, Locasun, PayCar, L'Argus and Pilgo.

Spain comprises primarily InfoJobs, Coches.net, Motos.net, Fotocasa, habitaclia, Milanuncios and Vibbo.

Brazil comprises OLX Brazil joint venture (including Anapro) and Infojobs Brazil. In the Consolidated Income Statement and Consolidated Statement of Financial Position of Adevinta, OLX Brazil is accounted for using the equity method of accounting. The segment figures for Brazil are presented on a 100% basis to reflect how the business and performance is monitored by management. Subsequent adjustments are included in Eliminations to get to the equity method of accounting in the Consolidated Income Statement and Consolidated Statement of Financial Position.

Global Markets comprises primarily Subito and Infojobs in Italy; Daft, Done Deal and Adverts in Ireland; Hasznaltauto and Jofogas in Hungary; Fincaraiz in Colombia; Yapo in Chile; Segundamano in Mexico; Kufar in Belarus; Tayara in Tunisia; Avito in Morocco; Corotos in Dominican Republic; Shpock in Austria, Germany and United Kingdom; and willhaben in Austria. In the Consolidated Income Statement and Consolidated Statement of Financial Position of Adevinta, willhaben is accounted for using the equity method of accounting. The segment figures for willhaben in Global Markets are presented on a 100% basis to reflect how the business and performance is monitored by management. Subsequent adjustments are included in Eliminations to get to the equity method of accounting in the Consolidated Income Statement and Consolidated Statement of Financial Position.

Other/Headquarters comprises Adevinta's shareholder and central functions including central product and technology development.

Eliminations comprise reconciling items related to OLX Brazil, willhaben and intersegment sales. Transactions between operating segments are conducted on normal commercial terms.

In the operating segment information presented, gross operating profit (loss) is used as a measure of operating segment profit (loss). For internal control and monitoring, operating profit (loss) is also used as a measure of operating segment profit (loss).

The operating segments correspond to the management structure and the internal reporting to the Group's chief operating decision maker, defined as the CEO.

Operating revenues and profit (loss) by operating segments

First quarter 2020	France	Spain	Brazil	Global	Other /
€ million				Markets	Headquarters	Eliminations	Total
Operating revenues from external customers	97.3	46.4	19.3	37.0	1.3	(26.8)	174.5
Operating revenues from other segments	0.2	-	-	0.2	0.7	(1.1)	(0.0)
Operating revenues	97.5	46.4	19.3	37.2	2.0	(27.9)	174.5
Gross operating profit (loss) excl. Investment phase	47.0	13.7	2.4	5.3	(20.0)	(5.0)	43.4
Gross operating profit (loss)	47.0	13.7	2.4	2.0	(20.0)	(5.0)	40.1
Operating profit (loss)	40.9	10.9	0.4	(0.8)	(24.2)	(1.5)	25.7

First quarter 2019			Brazil	Global	Other /
€ million	France	Spain			Markets	Headquarters	Eliminations	Total
Operating revenues from external customers	81.7	43.8	20.5	39.1	3.2	(28.1)	160.2
Operating revenues from other segments	0.1	-	-	0.2	1.1	(1.4)	0.0
Operating revenues	81.7	43.8	20.5	39.4	4.3	(29.5)	160.2
Gross operating profit (loss) excl. Investment phase	45.1	12.6	4.8	6.5	(12.1)	(7.4)	49.6
Gross operating profit (loss)	45.1	12.6	4.8	2.9	(12.1)	(7.4)	46.0
Operating profit (loss)	41.9	10.1	4.0	1.1	(16.8)	(3.2)	37.0

Full year 2019				Global	Other /
€ million	France	Spain	Brazil	Markets	Headquarters	Eliminations	Total
Operating revenues from external customers	356.9	182.0	86.0	162.8	10.5	(117.8)	680.3
Operating revenues from other segments	0.6	-	-	1.3	2.4	(4.3)	0.0
Operating revenues	357.4	182.0	86.0	164.1	12.8	(122.1)	680.3
Gross operating profit (loss) excl. Investment phase	191.3	60.5	6.0	25.5	(61.0)	(13.0)	209.4
Gross operating profit (loss)	191.3	60.5	6.0	15.7	(61.0)	(13.0)	199.5
Operating profit (loss)	175.1	48.7	1.6	(18.4)	(83.1)	(1.1)	122.8

Operating revenues by category:

	First quarter	Full year
€ million	2020	2019	2019
Advertising revenues	28.6	30.4	135.0
Classifieds revenues	143.6	125.0	527.4
Other operating revenues	2.3	4.8	17.9
Operating revenues	174.5	160.2	680.3

Disaggregation of revenues by category:

First quarter 2020	France	Spain	Brazil	Global Markets	Other / Headquarters	Total
€ million
Advertising revenues	15.8	5.1	0.2	7.5	-	28.6
Classified revenues	80.8	41.3	1.3	20.2	0.0	143.6
Other revenues	0.8	-	-	0.1	1.0	1.9
Revenues from contracts with customers	97.4	46.4	1.5	27.8	1.0	174.1
Revenues from lease contracts, government grants and others	0.0	-	-	0.1	0.3	0.4
Operating revenues from external customers	97.4	46.4	1.5	27.9	1.3	174.5

First quarter 2019				Global	Other /
€ million	France	Spain	Brazil	Markets	Headquarters	Total
Advertising revenues	15.9	4.9	0.3	9.3	-	30.4
Classified revenues	65.0	38.4	1.4	20.2	-	125.0
Other revenues	0.8	0.5	-	0.2	2.8	4.3
Revenues from contracts with customers	81.7	43.8	1.7	29.7	2.8	159.7
Revenues from lease contracts, government grants and others	(0.0)	-	-	0.1	0.4	0.5
Operating revenues from external customers	81.7	43.8	1.7	29.8	3.2	160.2

Full year 2019				Global	Other /
€ million	France	Spain	Brazil	Markets	Headquarters	Total
Advertising revenues	73.9	22.7	0.9	37.5	-	135.0
Classified revenues	276.9	159.2	6.0	85.2	0.1	527.4
Other revenues	6.0	0.2	-	0.7	9.0	15.9
Revenues from contracts with customers	356.8	182.0	7.0	123.4	9.1	678.3
Revenues from lease contracts, government grants and others	0.1	-	-	0.5	1.4	2.0
Operating revenues from external customers	356.9	182.0	7.0	123.9	10.5	680.3

Note 3. Other Income and Expenses and Impairment Loss

	First quarter		Full year
€ million	2020	2019	2019
Restructuring costs	(0.6)	(0.7)	(6.8)
Gain (loss) on sale of subsidiaries, joint ventures and associates	(0.0)	-	0.4
Gain (loss) on sale of intangible assets, property, plant and equipment and investment property	-	-	(0.0)
Gain (loss) on amendment of pension plans	-	-	0.0
Acquisition-related costs	(0.4)	-	(1.0)
IPO-related costs	-	(1.1)	(5.6)
Other	(0.1)	0.1	0.2
Total other income and expenses	(1.1)	(1.7)	(12.8)

Impairment loss of € (24.6) million in 2019 included impairment of goodwill related to Segundamano in Mexico of €(22.6) million and impairment of internally generated intangible assets of in total €(2.0) million.

Reduced revenue due to the COVID-19 pandemic is an impairment indicator. Based on current estimates, no further impairments have been identified. Adevinta will continue to assess the impact to the business should the pandemic extend beyond our current estimates and will apply the appropriate assumptions for calculating the recoverable amount for fixed and intangible assets, including goodwill.

Note 4. Net Financial Items

	First quarter		Full year
€ million	2020	2019	2019
Net interest income (expenses)	(1.0)	(2.9)	(6.0)
Net foreign exchange gain (loss)	(48.5)	2.9	1.4
Net other financial income (expenses)	(1.1)	(0.1)	(1.4)
Net financial items	(50.6)	(0.2)	(6.1)

As a result of the agreement entered into by OLX Brazil to acquire Grupo Zap in Brazil for about R\$2.9 billion which will be funded equally by each joint venture partner, Adevinta has entered into a series of derivative instruments to hedge the foreign currency exposure of the firm commitment of the Grupo Zap acquisition by hedging the acquisition amount in €. As hedge accounting is not applied to this currency hedge, the change in fair value of these derivatives has resulted in an unrealised foreign exchange loss of €(42.0) million in Q1 2020.

Note 5. Contingent Liabilities

Digital Services Tax in France

The French digital services tax legislation (DST) was enacted during 2019. The main features of the DST bill are a single rate of 3% to be levied on gross revenue derived from two types of activities if deemed to be made or supplied in France:

• The supply, by electronic means, of a digital interface that allows users to contact and interact with other users, in particular in view of delivering of goods or services directly between those users.

• Services provided to advertisers or their agents enabling them to purchase advertising space located on a digital interface accessible by electronic means in order to display targeted advertisements to users located in France, based on data provided by such users.

Taxpayers of DST are defined as companies (wherever their location) for which the annual revenue received in consideration for taxable services cumulatively exceeds both of the following thresholds in the previous tax year:

• €750 million of worldwide revenue; and,

• €25 million of revenue generated in France.

As enacted, the DST retrospectively applies to digital services revenue for 2019 and 2020. If applicable, the DST will negatively impact Adevinta's EBITDA. The DST amount payable is deductible for corporate income tax purposes.

Due to the complexity of the law the assessment of whether DST is applicable to Adevinta Group is surrounded by a high degree of uncertainty. However, management currently assesses that it is less likely than not that French DST is applicable to Adevinta and hence no provision has been recognised for DST as per 31 March 2020.

The main uncertainties relate to whether the services which Schibsted Group (including Adevinta Group) provide to its users in France and other countries are to be considered within the scope of DST. The current interpretation points to the non‑inclusion of some of the said services which means the applicable worldwide revenues within the scope of DST should be below €750 million.

Should the interactions with the French Tax Authorities and other actions conclude differently, the DST amounts applicable to Adevinta are not expected to exceed €9 million for 2019. Management will continue to work with the French tax authorities to obtain further clarification on this matter.

Note 6. Events After the Balance Sheet Date

Bridge Loan Facilities

During April, Adevinta expanded its liquidity reserve with additional €225 million secured through bilateral facilities with partner banks. This adds on to the €489.5 million total liquidity available at the end of March. While Adevinta's balance sheet and liquidity profile remain strong and properly sized to back the operating business, the new facilities will support the closing of the Grupo Zap acquisition announced earlier in February.

Note 7. Other Matters

COVID-19

The COVID-19 outbreak is currently affecting the world economy negatively. Adevinta is monitoring the development, including updating risk assessment and measures. In the near term, financial performance will be affected negatively, but it is still too early to predict the full impact that COVID-19 will have on the business.

Reduced revenue due to the COVID-19 pandemic is an impairment indicator. Based on current estimates, no further impairments have been identified. Adevinta will continue to assess the impact to the business should the pandemic extend beyond our current estimates and will apply the appropriate assumptions for calculating the recoverable amount for fixed and intangible assets, including goodwill

Adevinta had at the end of March 2020 low net interest-bearing debt and €489.5 million total liquidity available. In April 2020 Adevinta expanded its liquidity reserve with additional €225 million secured through bilateral facilities with partner banks to support the closing of the Grupo Zap acquisition announced earlier in February. Adevinta still considers liquidity and refinancing risk to be low.

Definitions and Reconciliations

The consolidated financial information is prepared in accordance with international financial reporting standards (IFRS). In addition, the company presents alternative performance measures (APM). The APMs are regularly reviewed by management and their aim is to enhance stakeholders' understanding of the company's performance. APMs are calculated consistently over time and are based on financial data presented in accordance with IFRS and other operational data as described below:

Measure	Description	Reason for including
EBITDA/Gross operating profit (loss)	EBITDA is earnings before other income and expenses, impairment, joint ventures and associates, interest, tax and depreciation and amortisation. The measure equals gross operating profit (loss)	Shows performance regardless of capital structure, tax situation and adjusted for income and expenses related to transactions and events not considered by management to be part of operating activities. Management believes the measure enables an evaluation of operating performance.
EBITDA excl. Investment phase	EBITDA excl. Investment phase is earnings before other income and expenses, impairment, joint ventures and associates, interest, tax, depreciation and amortisation excl. Investment phase. This measure equals gross operating profit (loss) from developed operations. The excluded operations are characterised by growth phase with large investments in market positions, immature monetisation rate and sustainable profitability has not been reached.	Shows performance regardless of capital structure, tax situation and adjusted for income and expenses related to transactions and events not considered by management to be part of operating activities to convey information of segment profitability in developed phase operations. Management believes the measure enables an evaluation of operating performance.
Operating revenues incl. JVs	Operating revenues including the proportional ownership of willhaben (Austria) and OLX (Brazil).	Shows performance including the proportional ownership of willhaben (Austria) and OLX (Brazil). Management believes the measure reflects the real scale, growth and profitability of Adevinta.
EBITDA incl. JVs	Gross operating profit including the proportional ownership of willhaben (Austria) and OLX (Brazil).	Shows performance including the proportional ownership of willhaben (Austria) and OLX (Brazil). Management believes the measure reflects the real scale, growth and profitability of Adevinta.
EBITDA margin	Gross operating profit (loss) / Operating revenues.	Shows the operations' performance regardless of capital structure and tax situation as a ratio to operating revenue. Management believes the measure enables an evaluation of operating performance.
EBITDA margin excl. Investment phase	Gross operating profit (loss) excl. Investment phase / Operating revenues. The excluded operations are characterised by growth phase with large investments in market positions, immature monetisation rate and sustainable profitability has not been reached.	Shows the operations' performance regardless of capital structure, tax situation and effects from operations characterised by growth phase with large investments in market positions where profitability has not been reached as a ratio to operating revenue. Management believes the measure enables an evaluation of operating performance.

EBITDA margin incl. JVs	Gross operating profit (loss) including the proportional ownership of willhaben (Austria) and OLX (Brazil) / Operating revenues including the proportional ownership of willhaben (Austria) and OLX (Brazil).	Shows the operations' performance including the proportional ownership of willhaben (Austria) and OLX (Brazil) as a ratio to operating revenue including the proportional ownership of willhaben (Austria) and OLX (Brazil). Management believes the measure reflects the real scale, growth and profitability of Adevinta.
Underlying tax rate	Underlying tax rate is defined as tax cost excluding effects that do not result in current tax payables.	Management believes that adjusted tax rate represents a more understandable measure of what is tax payable by the Group.
Liquidity reserve	Liquidity reserve is defined as the sum of cash and cash equivalents and unutilised drawing rights on credit facilities.	Management believes that liquidity reserve shows the total liquidity available for meeting current or future obligations.
Net interest-bearing debt	Net interest-bearing debt is defined as interest bearing liabilities less cash and cash equivalents and cash pool holdings. IFRS 16 leasing liabilities are not included in net interest bearing debt.	Management believes that net interest-bearing debt provides an indicator of the net indebtedness and an indicator of the overall strength of the statement of financial position. The use of net interest-bearing debt does not necessarily mean that the cash and cash equivalent and cash pool holdings are available to settle all liabilities in this measure.
Earnings per share adjusted (EPS (adj.))	Earnings per share adjusted for other income and expenses, impairment loss, non-controlling interests related to other income and expenses and impairment loss and taxes.	The measure is used for comparing earnings to shareholders adjusted for income and expenses related transactions and events net of tax not considered by management to be part of operating activities. Management believes the measure enables an evaluation of value created to shareholder excluding effects of non-operating events and transactions.
Revenues adjusted for currency fluctuations	Growth rates on revenue adjusted for currency effects are calculated using the same foreign exchange rates for the period last year and this year.	Enables comparability of development in revenues over time excluding the effect of currency fluctuation.

Developed Phase and Investment Phase

Developed Phase

• France: leboncoin, MB Diffusion, Avendrealouer, Videdressing, Locasun, PayCar and L'Argus and Pilgo
• Spain: Coches.net, Motos.net, Fotocasa, Vibbo, Milanuncios, InfoJobs, habitaclia
• Italy: Subito and InfoJobs
• Ireland: Daft, Done Deal and Adverts
• Hungary: Hasznaltauto and Jofogas
• Colombia: Fincaraiz
• Brazil: Infojobs

Consolidated Subsidiaries Joint ventures and associates

• Austria: willhaben
• Brazil: OLX, Anapro
• France: Younited

Investment Phase

(The investment phase operations are characterised by growth phase with large investments in market positions, immature monetisation rate and sustainable profitability has not been reached)

• Shpock in markets: Austria, Germany, United Kingdom
• Chile: Yapo
• Mexico: Segundamano
• Morocco: Avito
• Belarus: Kufar
• Dominican Republic: Corotos
• Tunisia: Tayara

Consolidated Subsidiaries Joint ventures and associates

• Indonesia: OLX
• Thailand: Kaidee (until Q2 2018)
• Portugal: Custo Justo (associate from Q3 2018)

Reconciliation of Operating revenues and EBITDA excl. Investment phase and in accordance with financial statements (€ million)		First quarter
		2019	2019
Operating revenues	174.5	160.2	680.3
Operating revenues Investment phase	5.8	6.8	28.5
Operating revenues excl. Investment phase	168.7	153.4	651.8
Gross operating profit (loss)	40.1	46.0	199.5
EBITDA Investment phase	(3.3)	(3.5)	(9.8)
EBITDA excl. Investment phase	43.4	49.6	209.4

	First quarter		Year
Underlying tax rate (€ million)	2020	2019	2019
Profit (loss) before taxes	(24.9)	36.8	116.7
Share of profit (loss) of joint ventures and associates	(0.4)	(4.2)	(5.9)
Other losses for which no deferred tax benefit is recognised	64.2	10.0	42.9
Gain on sale and remeasurement of subsidiaries, joint ventures and associates	-	-	(0.4)
Impairment losses	-	-	22.6
Adjusted tax base	38.9	42.6	175.8
Taxes	12.0	13.8	49.6
Underlying tax rate	30.8%	32.5%	28.2%

	31 March		31 December
Liquidity reserve	2020	2019	2019
Cash and cash equivalents	89.5	53.0	71.8
Unutilised drawing rights on credit facilities	400.0	0.0	100.0
Liquidity reserve	489.5	53.0	171.8

	31 March		31 December
Net interest-bearing debt	2020	2019	2019
Non-current interest-bearing borrowings	187.8	1.8	201.7
Non-current interest-bearing borrowings from Schibsted ASA	0.0	391.5	0.0
Gross credit positions in Schibsted cash-pooling arrangement	0.0	25.4	0.0
Non-current interest-bearing borrowings	187.8	418.7	201.7
Gross debit positions in Schibsted cash-pooling arrangement *	0.0	(143.6)	0.0
Current interest-bearing borrowings	0.2	0.0	0.3
Cash and cash equivalents	(89.5)	(53.0)	(71.8)
Net interest-bearing debt	98.5	222.1	130.2

IFRS 16 leasing liabilities are not included in net interest bearing debt.

* Gross debit positions in Schibsted cash-pooling arrangement is included in Trade receivables and other current assets in the balance sheet.

	First quarter		Year
Earnings per share - adjusted	2020	2019	2019
Profit (loss) attributable to owners of the parent	(36.1)	22.5	64.0
Other income and expenses	1.1	1.7	12.8
Impairment loss	0.0	0.3	24.6
Taxes and Non-controlling interests related to Other income and expenses and Impairment loss	(0.2)	0.0	(1.0)
Profit (loss) attributable to owners of the parent - adjusted	(35.2)	24.5	100.4
Earnings per share – adjusted (EUR)	(0.05)	0.04	0.15
Diluted earnings per share – adjusted (EUR)	(0.05)	0.04	0.15

	First quarter		Year
Currency rates used when converting profit or loss	2020	2019	2019
Pound sterling (GBP)	1.1613	1.1467	1.1406
Brazilian Real (BRL)	0.2046	0.2339	0.2268

P.O. Box 490 Sentrum NO-0105 Oslo

Tel: +47 23 10 66 00 Fax: +47 23 10 66 01 E-mail: ir@adevinta.com www.adevinta.com

Investor information: www.adevinta.com/ir

Financial Calendar

For information regarding conferences, roadshows and other investor questions, please visit www.adevinta.com/ir