Vend Marketplaces ASA — Earnings Release 2021

Oct 27, 2021

Q3 2021 Results

27 October 2021

Kristin Skogen Lund, CEO Ragnar Kårhus, CFO

Q&A

Visit: sli.do Event code: 590604

Disclaimer

This presentation (hereinafter referred to as the "presentation") has been prepared by Schibsted ASA ("Schibsted" or the "Company") exclusively for information purposes and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments.

Reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions contained herein are fair and reasonable, however no representation or warranty, express or implied, is given by or on behalf of the Company, any of its directors, or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability is accepted for any such information or opinions.

This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of the Company or assumptions based on information available to the Company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness of such information and statements. Several factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation.

There may have been changes in matters which affect the Company subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed.

The Company does not intend, and does not assume any obligation, to update or correct any information included in this presentation.

Alternative performance measures (APM) used in this presentation are described and presented in the section Definitions and reconciliations in the quarterly report.

Highlights Q3 2021

Strong underlying* revenue growth of 11%, strong EBITDA margin of 21%

Nordic Marketplaces with good development in Norway, Sweden and Finland driven by Jobs; soft quarter in Denmark

New milestone of 1m pure digital subscriptions in News Media, strong quarter for advertising

Good progress for Distribution and Lendo, and high activity in Ventures

ESG highlights Q3 2021

Environmental

Action plan developed on how DIMPACT can lower emissions throughout our digital value chain.

Action plan developed on how we can reduce the environmental impact caused by our use of in-house electronic devices.

Social

Studies on mapping the potential in managing diversity, inclusion and belonging started.

Employee engagement score above ambitious target.

Governance

Performed materiality analysis for Finn and Prisjakt and identified current sustainability status and potential.

Venture investments in companies with a positive impact.

Another strong quarter driven by Jobs

Nordic Marketplaces

Revenues (NOKm), EBITDA margin (%)

Revenue split Nordic Marketplaces

Revenues Q3 2021 (NOKm, share in %)

Job listing volumes continued positive trend in all markets

Jobs: New approved ads per quarter, Q3 YoY change (absolute numbers, %)

Continued high revenue growth, strong EBITDA margin

Marketplaces Norway

Revenues (NOKm), EBITDA margin (%) Highlights

• Strong revenue growth in Jobs (87%) driven by volume, supported by higher ARPA
• Good development in Motor, with increasing volumes after a period of imbalance between supply and demand
• Volume decline in Real estate driven by an economic environment with higher interest rates ahead, following a period of very high activity
• Solid growth in advertising revenues
• High revenue growth combined with continued unfilled demand for tech resources led to a strong EBITDA margin

Marketplaces Sweden

Jobs and Motors ensured revenue growth

Marketplaces Sweden

Revenues (SEKm), EBITDA margin (%)

• Premium product "Bump"ensured solid revenue growth in Motors from professional customers
• Continued revenue growth in Jobs driven by volume recovery combined with increased ARPA
• Revenue decline in C2C classifieds due to lower volumes and simplified pricing across categories
• EBITDA margin slightly below last year driven by increased investments in marketing and product development

Strong growth in classifieds across all verticals

Marketplaces Finland

Revenues (EURm), EBITDA margin (%)

10 * Pro-forma revenues and EBITDA margin, including Oikotie financials in Q3 2019 and Q3 2020

• Revenue growth primarily driven by increased Job volumes
• Good traction on Real estate cross traffic integration between Tori and Oikotie
• Advertising revenues declined YoY, driven by platform migration from Sanoma
• Growth investments in marketing, product and technology affected EBITDA

Marketplaces Denmark

Soft quarter driven by challenging market conditions

Marketplaces Denmark Revenues (DKKm)*

• Low dealer inventory and high turnover affecting Motor vertical negatively
• Generalist revenues down YoY driven by lower volume and traffic after reopening of society
• Lower advertising revenues YoY due to price pressure within programmatic, combined with car dealers holding back spend
• EBITDA affected by revenue shortfall, combined with increased costs from eBay separation and Schibsted integration

News Media

News Media

Revenue growth ensured good EBITDA margin

News Media

Revenues (NOKm), EBITDA margin (%)

• Strong revenue growth, primarily driven by a positive sentiment in the advertising market and continued growth in subscriptions
• New milestone of more than one million pure digital subscriptions reached
• Cost program on track, completed by Q4 2021
• Costs up YoY due to increased investments in new strategic initiatives with strong growth potential, and as temporary cost savings related to remote work started to reverse
• EBITDA margin above target range

Continued strong growth in digital revenues

Steady growth in digital subscription revenues

14 * Foreign exchange neutral basis

** Norway and Sweden not including eliminations

Significant YoY growth in digital advertising, well above 2019 levels

Subscription revenues (NOKm) Advertising revenues (NOKm)**

eCommerce & Distribution

eCommerce & Distribution

Solid revenue growth

eCommerce & Distribution

Revenues (NOKm), EBITDA margin (%)

• New Business driving revenue growth
  • Helthjem Netthandel (30%) driven by higher parcel volumes
  • Morgenlevering (41%) driven by price adjustments and higher average value of sold products
• Growth somewhat slower than earlier this year due to reopening of the Norwegian society
• Decreased EBITDA margin driven by higher step-fixed costs to expand capacity

Financial Services & Ventures

Financial Services & Ventures

Mixed picture across the portfolio with Lendo driving growth

Financial Services & Ventures

Revenues (NOKm), EBITDA margin (%)

• Strong revenue growth in Lendo, reduced EBITDA margin
• Prisjakt revenues (-3%*) met strong comparables from COVID-19 boosted 2020, steady EBITDA margin YoY
• New services drives continued growth for MittAnbud and Servicefinder
• Continued good traction in Ventures

Lendo Group

Revenues up 21%* YoY, margins affected by investments

Lendo Group

Revenues (NOKm), EBITDA margin (%)

19 * Foreign exchange neutral basis

• Strong revenue growth driven by continued high demand and somewhat improving conversion from applications to paid-out loans
• Margins down YoY driven by increased marketing spend in Sweden and expansion investments
• EBITDA investment target for expansion maintained in the range of NOK 70-80 million for 2021

Ventures

Schibsted is built on entrepreneurship, innovation and investments

Finance

Nordic Marketplaces ensured strong quarterly EBITDA; ramped up growth investments

Schibsted Group

Revenues, EBITDA (NOKm)

Schibsted Group Q3 EBITDA per segment

Q3 income statement Schibsted Group

Income statement	Third quarter
(NOK million)	2020	2021
Operating revenues	3,188	3,667
Operating expenses	(2,510)	(2,898)
Gross operating profit (loss) - EBITDA	678	769
Depreciation and amortisation	(218)	(268)
Share of profit (loss) of joint ventures and associates	2	(24)
Impairment loss	(7)	(9)
Other income	(1)	123
Other expenses	(94)	(26)
Operating profit (loss)	360	564
Net financial items	(39)	(55)
Profit (loss) before taxes from continuing operations	321	509
Taxes	(59)	(96)
Profit (loss) from continuing operations	262	414
Profit (loss) from discontinued operations	(209)	(3)
Profit (loss)	53	410
Non-controlling interests	(58)	18
Owners of the parent	112	392
Earnings per share (NOK)
EPS - basic (NOK)	0.48	1.68
EPS - basic adjusted (NOK)	1.60	1.28

Share of result from Adevinta not included in Q3, but will be reported with one quarter lag starting Q4 2021

Mainly related to gain from sale of Kundkraft AB

Continuing operations

Strong EBITDA ensured growth in operating cash flow

EBITDA (NOKm)

Operating cash flow (NOKm)

Continuing operations

Financial gearing well within target range, and strong liquidity buffer

Debt maturity profile* (NOKm)

Targeting financial gearing in the range of 1-3 (NIBD/EBITDA according to bank definition)

* As of 30 september 2021 ** According to bank definition ²⁵

Financial targets and policies

Nordic Marketplaces	Nordic Marketplaces revenues Targeting annual revenue growth of 8-12% for the segment in the medium- to long-term
News Media	Medium-term targets for the segment Annual revenue growth: low single-digit EBITDA margin: 10-12%
Capital allocation	M&A M&A activities targeted primarily to strengthen market positions and bolt-on adjacent businesses
	Dividend policy Stable to increasing dividend over time
Capital structure	Leverage policy Targeting NIBD/EBITDA in the range of 1-3, making it possible to lever up if a particularly attractive investment becomes available Any over-capitalization to be addressed through (extraordinary) dividend or share buyback

Q&A

27 October 2021

Kristin Skogen Lund, CEO Ragnar Kårhus, CFO Christian Printzell Halvorsen, EVP Nordic Marketplaces

Appendices

Spreadsheet containing detailed Q3 2021 and historical information can be downloaded at schibsted.com/ir

Listing trends per main verticals

New approved ads

(Monthly growth YoY, %)

Country	Vertical	Jul-20	Aug-20	Sep-20	Oct-20	Nov-20	Dec-20	Jan-21	Feb-21	Mar-21	Apr-21	May-21	Jun-21	Jul-21	Aug-21	Sep-21
Norway	Jobs	-22%	-23%	-9%	-12%	0%	5%	-8%	6%	79%	118%	83%	75%	66%	75%	56%
	Motor	6%	-3%	-3%	-6%	3%	8%	-11%	-7%	16%	16%	-1%	5%	0%	6%	8%
	Real estate	13%	-4%	1%	-2%	-3%	4%	-9%	-6%	17%	19%	3%	2%	-14%	-5%	-9%
Sweden	Jobs	-44%	-42%	-22%	-21%	-18%	-13%	-18%	-13%	26%	84%	106%	61%	98%	77%	50%
	Motor	8%	-1%	4%	-2%	4%	10%	-13%	-9%	12%	7%	0%	-10%	-10%	0%	-6%
Finland	Jobs	-14%	-25%	-4%	-18%	-12%	5%	-10%	9%	29%	116%	105%	82%	73%	78%	65%
	Real estate	15%	-5%	18%	7%	2%	33%	0%	1%	13%	14%	13%	6%	6%	19%	4%
Denmark	Motor	7%	0%	-1%	-7%	-2%	9%	-12%	-16%	-5%	-4%	-12%	-11%	-19%	-12%	-14%

Registration of new cars in Norway and Denmark

(Rebased, January 2019)

Historical pro-forma revenues per quarter Denmark

Marketplaces Denmark

Revenues (DKKm)*

	Q1-19	Q2-19	Q3-19	Q4-19	Q1-20	Q2-20	Q3-20	Q4-20	Q1-21	Q2-21
Operating revenues	87.0	94.1	90.7	91.8	88.6	96.9	90.9	94.2	92.5	90.0
Classifieds revenues	60.0	64.7	63.1	62.7	62.9	67.2	63.3	63.9	65.1	63.9
Advertising revenues	17.1	18.5	16.0	18.0	14.1	17.0	15.2	17.1	15.0	14.3
Other Revenues	9.9	10.9	11.7	11.1	11.6	12.7	12.4	13.1	12.4	11.7

Continuing operations

Q3 cash flow

Cash flow	Third quarter
(NOK million)	2020	2021
Profit (loss) before taxes from continuing operations	321	509
Depreciation, amortisation and impairment losses	225	277
Net effect pension liabilities	11	8
Share of loss (profit) of joint ventures and associates, net of dividends received	(2)	27
Taxes paid	(91)	(18)
Sales losses (gains) non-current assets and other non-cash losses (gains)	3	(118)
Non-cash items and change in working capital and provisions	(175)	(170)
Net cash flow from operating activities	293	516
Development and purchase of intangible assets, and property, plant and equipment	(129)	(165)
Acquisition of subsidiaries, net of cash acquired	(1,951)	(2)
Proceeds from sale of intangible assets, and property, plant and equipment	1	-
Proceeds from sale of subsidiaries, net of cash sold	(2)	(9)
Net sale of (investment in) other shares	(26)	(74)
Net change in other investments	(17)	1
Net cash flow from investing activities	(2,125)	(248)
Net cash flow from financing activities	(71)	(168)
Effects of exchange rate changes on cash and cash equivalents	5	(1)
Net increase (decrease) in cash and cash equivalents	(1,898)	98

Q3 cash flow Schibsted Group

Cash flow	Third quarter
(NOK million)	2020	2021
Profit (loss) before taxes from continuing operations	321	509
Profit (loss) before taxes from discontinued operations	(24)	(4)
Depreciation, amortisation and impairment losses	258	277
Net effect pension liabilities	14	8
Share of loss (profit) of joint ventures and associates, net of dividends received	31	27
Taxes paid	(189)	(18)
Sales losses (gains) non-current assets and other non-cash losses (gains)	(14)	(118)
Non-cash items and change in working capital and provisions	257	(166)
Net cash flow from operating activities	654	516
Net cash flow from investing activities	(2,240)	(364)
Net cash flow from financing activities	(99)	(168)
Effects of exchange rate changes on cash and cash equivalents	69	(1)
Net increase (decrease) in cash and cash equivalents	(1,616)	(18)
Cash and cash equivalents at start of period	6,282	727
Cash and cash equivalents at end of period	4,666	709

Income taxes

The relationship between tax (expense) income and accounting profit (loss) before taxes is as follows:

Income tax Third quarter
(NOK million)	2020	2021
Profit (loss) before taxes	321	509
Tax (expense) income based on weighted average tax rates*	(70)	(109)
Prior period adjustments	-	-
Tax effect of share of profit (loss) from joint ventures and associates	-	(5)
Tax effect of impairment loss on goodwill, joint ventures and associates	(1)	-
Tax effect of other permanent differences	(22)	21
Current period unrecognised deferred tax assets	(3)	(2)
Re-assessment of previously unrecognised deferred tax assets	38	-
Tax (expense) income recognised in profit or loss	(59)	(96)
* Weighted average tax rates	21.9%	21.5%

Shareholders analysis

Rank	Name	A-shares	B-Shares	Total	% of S/O
1	Blommenholm Industrier AS	28,541,262	30,013,354	58,554,616	25.0%
2	Folketrygdfondet	9,014,927	10,692,564	19,707,491	8.4%
3	Baillie Gifford & Co.	7,975,774	10,828,519	18,804,293	8.0%
4	Fidelity Management & Research Company LLC	9,126,153	3,891,304	13,017,457	5.6%
5	Adelphi Capital LLP	2,423,292	4,353,478	6,776,770	2.9%
6	The Vanguard Group, Inc.	2,615,782	2,794,977	5,410,759	2.3%
7	Alecta pensionsförsäkring, ömsesidigt	0	5,193,000	5,193,000	2.2%
8	NYA WERMLANDS-TIDNINGENS AB	2,592,000	2,592,000	5,184,000	2.2%
9	Pelham Capital Ltd	0	4,844,446	4,844,446	2.1%
10	BlackRock Institutional Trust Company, N.A.	2,114,324	2,709,313	4,823,637	2.1%
11	DNB Asset Management AS	1,348,663	3,110,400	4,459,063	1.9%
12	Mitsubishi UFJ Trust and Banking Corporation	1,545,849	1,781,775	3,327,624	1.4%
13	KLP Forsikring	464,850	2,858,829	3,323,679	1.4%
14	Storebrand Kapitalforvaltning AS	1,416,762	1,857,855	3,274,617	1.4%
15	Securities Finance SSIB	34,256	2,459,926	2,494,182	1.1%
16	Alfred Berg Kapitalforvaltning AS	770,271	1,721,223	2,491,494	1.1%
17	Handelsbanken Asset Management	400,176	2,081,975	2,482,151	1.1%
18	Fidelity Institutional Asset Management	1,827,796	642,237	2,470,033	1.1%
19	Premier Miton Investors	2,120,823	0	2,120,823	0.9%
20	Marathon-London	1,449,454	550,166	1,999,620	0.9%

The shareholder ID data is provided by Nasdaq OMX. The data is 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 Schibsted share register. Whilst every reasonable effort is made to verify all data, neither Nasdaq OMX nor Schibsted can guarantee the accuracy of the analysis.

Source: Nasdaq OMX, VPS; Data as of 16 September 2021

Investor contact

Visit Schibsted's website schibsted.com

E-mail: ir@schibsted.com

Jann-Boje Meinecke VP, Head of IR +47 941 00 835

Malin Langtvet IR Officer +47 916 86 710

Schibsted ASA Akersgata 55 / P.O. Box 490 Sentrum NO-0105 Oslo