Adevinta — Investor Presentation 2019

Jul 15, 2019

Q2 2019 Results

Rolv Erik Ryssdal, CEO Uvashni Raman, CFO

15 July 2019

Creating perfect matches on the world's most trusted marketplaces

Disclaimer

IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Adevinta ASA (the "Company") or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the "Information"). In accessing the Information, you agree to be bound by the following terms and conditions.

The Information does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase securities of the Company, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding such securities. Any securities of the Company may not be offered or sold in the United States or any other jurisdiction where such a registration would be required unless so registered, or an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended, or other applicable laws and regulations is available. The Information is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The Information is not for publication, release or distribution in any jurisdiction in which offers or sales would be prohibited by applicable law.

The Information has been prepared by the Company, and no other party accepts any responsibility whatsoever, or makes any representation or warranty, express or implied, for the contents of the Information, including its accuracy, completeness or verification or for any other statement made or purported to be made in connection with the Company and nothing in this document or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future.

The Information contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "estimate," "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forwardlooking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or the opinions contained therein. The Information has not been independently verified and will not be updated. The Information, including but not limited to forward-looking statements, applies only as of the date of this document and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the Information, including any financial data or forwardlooking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date of this document.

This presentation contains statistics, data, statements and other information relating to the group's markets and the industry in which it operates. Where such information has been derived from third-party sources, such sources have been identified herein. In addition, the Company has been named as a source for certain market and industry statements included in this presentation. Such "Company information" reflects the Company's views based on one or more sources available to it (some of which are not publicly available, but can be obtained against payment), including data compiled by professional organisations, consultants and analysts and information otherwise obtained from other third party sources.

Rolv Erik Ryssdal, CEO Overview

Q2 Financial Highlights Continued strength in core verticals

Verticals revenue grew 16%	• France up 16% • Spain up 16% • OLX Brazil up 33% on a local currency basis
Total revenues grew 13%	• Continued softness in display advertising
EBITDA up 20% to €50 million	• Negatively affected by one-off ESOP charge of €5 million in Brazil • EDITDA margin up 2%-points to 27%
Another profitable quarter for Global Markets	• EBITDA up to €3.4 million from €1.1 million in Q1 2019

All numbers on a proportionate basis incl JVs

France: solid growth in core verticals

• Revenues up 13%, core verticals up 16%
• Pricing and new product development in cars and real estate
• Weak advertising market persists, display advertising revenues down marginally, improvement over Q1 2019
• Product development further accelerated
• Traffic up 9%
• P2P payment deployment, P2P delivery launched
• New ad posting and search functionality introduced
• France (LBC incl. subs) EBITDA margins remain strong at 54%
• Acquisitions of Locasun and PayCar enhance leboncoin's no 1 position, strengthens holiday rental and core car vertical

* The effect of IFRS 16 implementation on Operating expenses and EBITDA for France is EUR 1.0 million in Q2 2019. Excluding the IFRS 16 effect EBITDA margin for France is 53% in Q2 2019

Spain: verticals driving growth

• Solid revenue growth of 14%, driven by verticals growing 16%
• Core classifieds in all verticals underpinned overall revenue growth
• Cars vertical continues expanding customer base and improved monetisation with bundles
• Advertising softness continues but rose 7% in Q2 yoy, versus a decline in Q1 yoy
• Product development progressed well in the quarter:
• Successful implementation of price transparency in coches.net
• Good progress in user retention and engagement in Fotocasa
• EBITDA improvement driven by top line growth

* The effect of IFRS 16 implementation on Operating expenses and EBITDA for Spain is EUR 0.8 million in Q2 2019. Excluding the IFRS 16 effect EBITDA margin for Spain is 32% in Q2 2019

Brazil: continued underlying positive development

• Revenues up 20%, core verticals up 33% (local currency)
• Headwinds in advertising tough economic environment
• Product development driving traffic growth, user optimisation
• Car financing and insurance services increasingly integrated to improve verticals appeal – attracting large finance houses
• Real estate strategy to increase inventory now the #2 player in Brazil in terms of listings
• EBITDA margin impacted by:
• ESOP and indirect tax reclassification
• Normalized EBITDA margin at 23% (local currency)

• The effect of IFRS 16 implementation on Operating expenses and EBITDA for Brazil is EUR 0.3 million in Q2 2019. Excluding the IFRS 16 effect EBITDA margin for Brazil is -36% in Q2 2019.

• Q2 2019 margin of 23% on a normalized basis adjusted for ESOP

43.6 74.6 89.2 1% 10% 23% Revenues EBITDA margin Brazil Revenues (BRL million) and EBITDA margin +20% Q2 17 Q2 18 Q2 19

Global Markets: positive EBITDA, improving margins

• Core verticals up 12% as verticalization path developed across Global Markets portfolio
• EBITDA to €3.4 million
• Development in technical infrastructure and launch of a common data platform

* The effect of IFRS 16 implementation on Operating expenses and EBITDA for Global Markets is EUR 0.8 million in Q2 2019. Excluding the IFRS 16 effect EBITDA margin for combined financial figures is 8% in Q2 2019

EBITDA Combined financials (EUR millions)

Global Markets: key market update

Growth in motors and jobs, shift of revenue towards verticals. Launched push notifications in apps and further optimized the saved searches function.

ITALY WILLHABEN IRELAND HUNGARY SHPOCK

Another period of strong growth in the verticals.

Improvements made to ad insertions in aps, rolled out smart replies in messaging center.

New tools available to professionals in cars.

Launched new niche category (boats) to broaden appeal of leisure products.

Daft expanded its reach with a new homes category to increase display advertising in real estate.

Expanded the car financing while rolling out new agent tools for Done Deal in cars.

Good growth in verticals. Door-to-door delivery service improved.

Sustained roll-out of the Jofogas + Hasznaltauto bundle for car dealers with more than 30% penetration

Consolidating leadership in Motor and building a solid no 2 in Jobs focused on blue collar

First version of its transactional product ready to deploy in Q3.

Good dynamic in GMV and STR is a solid support for transactional mode

Strong engagement and retention allows for increased monetization with reduced investment in user acquisition

Tough display advertising market conditions

• Competitive market conditions also affected by economic headwinds in some markets
• Market dynamics in H1 2018 inflating yield for the period
• First-price auction bidding
• No GDPR impact
• Specific initiatives to further improve rate of performance in H2 include:
• Continued advertising demand path & pricing optimization
• Focus on enhancing own advertising data proposition, in-app advertising, video
• Overall improvement of the go-to-market sales approach
• Resolving advertising technology issues
• Overall advertising revenue has increased by 8% from Q1 2019 to Q2 2019

leboncoin product development with global scale potential

leboncoin benefits from improvements in match making capabilities.

Multiple marketplaces product deployments in Q2

Financials

Uvashni Raman, CFO

Solid financial performance in Q2

Solid growth in revenues and operating margins

Revenue growth driven by vertical performance Advertising revenue growth muted

EBITDA margin progression at 27%

• EBITDA to €50m (ESOP adjusted €55m)
• Normalized EBITDA margin at 30%

Focus to increase profitability and cash generation continues

Proportionate ownership view Revenues (€ million) and EBITDA margin

Core classified revenues continued growth momentum, some softness in display advertising

Revenue growth driven by strong verticals

¹ Revenue from verticals grew 16 percent adjusted for currency

Revenues grow 13% overall in Q2

EBITDA progresses 20% in Q2

Demerger impacts - balance sheet

	30-Jun	31-Dec
€ million	2019	2018
Intangible assets	1,327	1,301
Property, plant and equipment and right-of-use assets	88	20
Investments in joint ventures and associates	390	375
Other non-current assets	12	13
Non-current assets	1,816	1,709
Trade receivables and other current assets	154	389
Cash and cash equivalents	65	55
Current assets	218	444
Total assets	2,035	2,154
Equity attributable to owners of the parent	1,514	1,318
Non-controlling interests	15	14
Equity	1,529	1,332
Non-current interest-bearing borrowings	151	449
Other non-current liabilities	143	77
Non-current liabilities	295	525
Current interest-bearing borrowings	0	0
Other current liabilities	211	297
Current liabilities	211	297
Total equity and liabilities	2,035	2,154

Demerger impacts - equity

€ million	Equity attributable to owners of the parent	Non Controlling Interest	Equity
Equity as at 1 January 2019	1,317	14	1,331
Comprehensive income	51	1	52
Transactions with the owners	146	0	146
Capital increase	144	0	144
Share-based payment	-0.9	0.0	-0.9
Changes in ownership of subsidiaries that do not result in a loss of control	-1.4	0.3	-1.0
Group contributions and dividends	3.6	0.0	3.6
Equity as at 30 June 2019	1,514	15	1,529

DST Tax Update - France

• Senate Approval on 11 July 2019, presidential approval pending
• The 3% tax on digital revenues will apply with respect to the following thresholds
• Revenue in France above €25m and global digital revenues of €750 million or more.
• Applies retroactively thresholds will be calculated based on 2018 revenues
• Adevinta Group standalone does not exceed the €750 million threshold
• Schibsted Group Revenue included majority shareholding
• Uncertainty exists whether services in Group fall within the scope of DST impacting threshold and revenue taxable
• Guidelines on DST to be issued by the French tax authorities should provide clarity
• Continue to engage stakeholders to argue against application
• No provision is recognized for DST as per 30 June 2019 (legislation not enacted)

Rolv Erik Ryssdal, CEO Conclusion

Outlook Well positioned on growth trajectory

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

Good performance in 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

Maintain investment in product development locally and centrally

Appendices

Spreadsheet containing detailed Q2 2019 and other analytical information can be downloaded from www.adevinta.com/ir

Adevinta operates as an independent company

• Adevinta is uniquely positioned for participation in possible structural development in the industry
• Continued long term Schibsted ownership in Adevinta
• Initially 60%, but Schibsted will be open to considering the option of reducing its shareholding, becoming a non-majority shareholder over time
• Schibsted will support the development of Adevinta to the benefit of all shareholders
• Maximizing shareholder value for all Adevinta shareholders is the overarching goal for Schibsted's ownership in Adevinta
• Schibsted will exercise ownership in Adevinta through the shareholder meeting and representation on the Adevinta Board
• 4 of 6 Board members are independent

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	7,462,127	12,461,071	19,923,198	2.9 %
4	Folketrygdfondet	6,976,190	12,688,694	19,664,884	2.9 %
5	Baillie Gifford & Co.	6,923,018	4,616,618	11,539,636	1.7 %
6	Adelphi Capital LLP	2,527,619	7,214,384	9,742,003	1.4 %
7	York Capital Management L P.	0	8,473,509	8,473,509	1.2 %
8	The Vanguard Group, Inc.	3,126,989	3,699,091	6,826,080	1.0 %
9	JPMorgan Chase Bank GTS CL A/C Escrow Account	2,671,414	4,095,481	6,766,895	1.0 %
10	Goldman Sachs International	1,469,514	4,961,308	6,430,822	0.9 %
11	Alecta pensionsförsäkring, ömsesidigt	1,434,023	4,733,600	6,167,623	0.9 %
12	Pelham Capital Ltd	0	5,309,851	5,309,851	0.8 %
13	Capital Guardian Trust Company	0	5,141,496	5,141,496	0.8 %
14	Citigroup Global Markets	1,802,806	3,086,156	4,888,962	0.7 %
15	UBS Securities LLC	2,699,781	1,457,716	4,157,497	0.6 %
16	Nya Wermlands Tidningen	2,874,300	1,263,000	4,137,300	0.6 %
17	DNB Asset Management AS	449,364	3,618,173	4,067,537	0.6 %
18	Alken Asset Management Ltd	1,687,970	2,160,252	3,848,222	0.6 %
19	FMR Investment Management (U.K.) Limited	2,770,100	1,052,905	3,823,005	0.6 %
20	KLP Forsikring	835,698	2,802,667	3,638,365	0.5 %

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.

Source: Nasdaq OMX. Data as of 31 May 2019

Basic information

	A-share	B-share
Ticker
Oslo Stock Exchange: Reuters: Bloomberg:	ADEA ADEA.OL ADEA:NO	ADEB ADEB.OL ADEB:NO
Number of shares	307,849,680	373,298,209
Treasury shares (12 July 2019)	0	0
Number of shares outstanding	307,849,680	373,298,209
Free float*	35%	45%
Share price (12 July 2019)	NOK 97.10	NOK 96.00
Average daily trading volume (shares)**	406,000	729,000
Market Cap total (12 July 2019)		NOK 65.7 bn., €6.8 bn., £6.1 bn., US\$ 7.7 bn.,

* Total number of shares excluding treasury shares and shares owned by Schibsted ASA.

** Since 10 April 2019

Investor information

Visit Adevinta's website www.adevinta.com

IR contacts:

Jo Christian Steigedal

ir@adevinta.com +47 415 08 733

Espen Risholm ir@adevinta.com, +47 924 80 248

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