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Vend Marketplaces ASA Investor Presentation 2010
3738_iss_2010-01-07_a2b5a1ba-bf9d-4a85-9ef0-0f2fc11c1694.pdf
Investor Presentation
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SEB Enskilda Nordic Seminar 2010
Copenhagen, 7 January 2010
Trond Berger, CFO Schibsted ASA
SCHIBSTED
Two strong strategic legs
European leader in rapidly growing online marketplaces
Leading positions in print and online space in Norway, Sweden and International
CHIBSTED
Two strong strategic legs
Revenue LTM: NOK 2,619 million
EBITA LTM: NOK 563 million
Revenue LTM: NOK 8,992 million
EBITA LTM: NOK 158 million
CHIBSTED
European leader in online classifieds
Highly profitable
1 positions
FINN Norway
blocket.ao
Smeden 2010-03-03 16:35:41
bytbil.com Sweden
LaCentrale
leboncoin.fr France
InfoJobs.net
segundamano.si
(2) web para comprar y vender
FotoCasa.es
coches.net Spain
4 Source: Nielsen Netratings
CHIBSTED
The winner takes it all
EBITDA margin
High margins for players that are much larger than #2
Size versus second player
Source: Company reports and presentations
1 2007/2008 annual data (not calendarised to December year-end)
2 EBITA figure for FINN
CHIBSTED
Continued roll out of Blocket concept in 2010
| Site name | Country | Launched |
|---|---|---|
| segundamano.es | ||
| La web para comprar y vender | Spain | 2005 |
| Profitable | ||
| leboncoin.fr | France | 2006 |
| Profitable | ||
| subito.it | ||
| Vendi & Compra di tutto in Italia | Italy | 2007 |
| mudah.my | ||
| The marketplace of Malaysia | Malaysia | 2007 |
| [email protected] | ||
| Compra e venda con todo o Portugal | Portugal | 2008 |
| AyesDito.ph | ||
| Your Marketplace In The Philippines | Philippines | 2009 |
| AggelioPolis.gr | Greece | 2009 |
| berniaga.com | Indonesia | 2009 |
| teri.n | Finland | 2009 |
- Roll out strategy to continue in 2010
- Around NOK 100 million invested in expansion in 2009
- Somewhat increased investments planned in 2010
- Two new markets to be launched within a week
- Subito leaving Kijiji behind in Italy, becoming #1 in Classifieds. eBay still larger than Subito
- Encouraging development in Malaysia
- Rest of the sites still in early stage
CHIBSTED
7
European leader in rapidly growing online marketplaces
Three sources of revenue in build up phase
Ieboncoin.fr Centre - offres
Accueil | Déposer une annonce | Offres | Demandes | Mes annonces | Aide
- Voluntary fee
- Banner ads
- Google AdSense contextual ads
CHIBSTED
8
CHIBSTED
European leader in rapidly growing online marketplaces
Three sources of revenue in build up phase
Example Leboncoin.fr
- Voluntary fee
- Banner ads
- Google AdSense contextual ads
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9
Innovative online directory service challenging Eniro in Sweden
hitta se
- 21 % revenue growth in Q3 2009
- Approximately 25 % of market in terms of revenues
- Head to head with incumbent in terms of traffic
CHIBSTED
Two strong strategic legs
European leader in rapidly growing online marketplaces
Leading positions in print and online space in Norway, Sweden and International
CHIBSTED
The most read newspapers in Norway and Sweden
Schibsted owns three of top five newspapers in Norway
Schibsted owns two of top five paid newspapers in Sweden
Source: TNS Gallup 2008 Forbruker & Media 08/01
1 Norwegian population of 3,963,000 aged 12 or older
Source: Orvesto 2008:1
2 Swedish population of 7,150,000 aged 15 to 79
S
CHIBSTED
12
The most used online sites in Norway and Sweden
Schibsted sites generate close to 29% of top 20 traffic in Norway
| Unique weekly visitors (m) | Change Y/Y | |
|---|---|---|
| 1. | 3.1 | 20% |
| 2. | MSN | 2.3 |
| 3. | Startsiden | 1.8 |
| 4. | Dagbladet.no | 1.8 |
| 5. | Finn | 1.8 |
| 9. | Afterspoften | 1.0 |
| 14. | 324 | 0.6 |
Schibsted sites generate close to 27% of top 20 traffic in Sweden
| Unique weekly visitors (m) | Change Y/Y | |
|---|---|---|
| 1. | MSN network | 7.2 |
| 2. | AFTUNBLADET | 3.9 |
| 3. | blocket.se | |
| Swiger, stinks-flyr & dig marked. | 3.2 | |
| 4. | Eniro.se | 2.6 |
| 5. | S | 2.4 |
| 12. | 324 | 0.8 |
| 21. | SvD.se | 0.6 |
Schibsted's properties
Source: TNS Gallup, Kiaindex
Note: SvD Nya Medier network includes E24.se and Svd.se; week 17 of 2009
SCHIBSTED
13
Strategic plan to address structural shift online
Maintain healthy total readership to offset circulation declines
Daily readership ('000)
Daily readership ('000)
Annual readership
Innovative approach to online news publishing
Source: TNS Gallup, Orvesto
¹ 2007 and 2008 from Internet survey
CHIBSTED
Editorial content
Traffic
Journalism
Value creation
15
CHIBSTED
Strategic plan to address structural shift online
Pro-active measures to improve profitability per reader
Measures to improve profitability
- Adoption of tabloid format for morning subscription newspapers
- Focus on segmented pricing adjustments
- Launch product supplements
- Improved production efficiency
- Progressive integration of print and online infrastructures
Cover price increases (NOK)
VG NETT football rights
Oline
- Develop subscription revenue streams from personalised services
- Football rights, weight club, premium editorial content etc.
- Expand into new content areas (e.g., fashion, web shops)
- Creating content subscription services for mobile
24 hours of media
- different needs at different situations
CHIBSTED
New distribution channels and revenue models
CHIBSTED
18
Source: TNS Gallup, Forbruker & Media
CHIBSTED
Media Norge and Schibsted Sweden vehicles for synergies
- Close collaboration across the Media Norge Group on back office functions being implemented
19
Media Norge and Schibsted Sweden vehicles for synergies
- Close collaboration across the Schibsted Sverige Group
- Will move into one shared building early 2011
CHIBSTED
Q3 summary
Continued online growth, print impacted by weak advertising markets
| Underlying | ||||
|---|---|---|---|---|
| Revenue Q3 2009 | Change y/y* | EBITA margin Q3 09 | Q3 08 | |
| Group | 3 264 | -2 % | 9 % | 7 % |
| Editorial | 2 419 | -7 % | 5 % | 4 % |
| of which Print newspapers | 2 183 | -9 % | 7 % | 4 % |
| of which Online newspapers | 236 | 18 % | -7 % | 2 % |
| Classifieds/directories | 690 | 10 % | 31 % | 27 % |
CHIBSTED
Continued overall online growth, increased print profitability
Online share of revenues rolling 12 months
Online share of EBITA* rolling 12 months
- Overall migration towards online media continue
- Online growth in Q3 2009 17% Y/Y
- 29% of group operating revenues last 12 months came from online activities
- 63% of operating profit from online (ex headquarter cost and associated companies)
-
Increased profitability from print activities after cost reductions
-
) EBITA excluding headquarter cost and contribution from associated companies.
CHIBSTED
NOK 1 billion 2009 profitability programme on track
- NOK 300 million effect recorded in Q3 2009
- Accumulated effect in year to date 2009 NOK 700 million
- Headcount reduced by 650 year to date as of Q3 2009
- Total headcount reduction since programme launch 1,090
- Close monitoring of progress by special team
- We are on track
Planned quarterly effect from profitability programme
Effect of profit measures quarter by quarter compared to corresponding quarter last year (not accumulated)
CHIBSTED
Effect of current profitability programme increasing in the coming years
NOK million
CHIBSTED
Key financial figures
Earnings per share
NOK
Cash flow per share
NOK
CAPEX
CAPEX (NOK) and CAPEX/Sales (%)
Note:
NIBD/EBITDA
according to
bank definition.
CHIBSTED
Preparation for refinancing due in 2011 initiated
- All debt maturing in 2009 and 2010 can be refinanced with undrawn facilities maturing in 2011
- Preparation for refinancing initiated. A more diversified debt structure will be considered
- Financial covenants provide headroom in 2009-2011
- NIBD 4.5 times EBITDA in Q3 2009, 3.75 in Q4 2009
- NIBD/EBITDA 2.4 at end of Q3 2009, according to loan agreement definition
- Euro debt exposure reduced to approx 50% during 2009
CHIBSTED
Divestment programme freeing up capital
Divestments as of Q3 2009 – total cash flow NOK 943 million
- Metronome Film & Television
- Secondamano print/online classifieds Italy
- Moi Rayon Moscow
- Polaris Media (total return swap)
- Aspiro (total return swap)
- Bolha (classifieds JV Slovenia)
- Retriever
- Basefarm announced in Q4 2009 (NOK 185 million)
- Teleadress announced in Q4 2009 (SEK 60 million)
Additional sales processes initiated
- Schibsted Trykk real estate property
- Remaining shares in Aspiro AB
CHIBSTED
Focus areas 2010
- A more streamlined and focused group
- Bottom line orientation and stricter investment discipline
- Deliver on profitability programme
- Continue targeted investments in online growth initiatives – a focused portfolio
- Maintain and develop number 1 positions within print newspapers and online news/services
CHIBSTED
CHIBSTED
Q&A