Vend Marketplaces ASA — Investor Presentation 2018

Oct 26, 2018

Q3 2018

CEO Rolv Erik Ryssdal and CFO Trond Berger 26 October 2018

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.

• Q3 Highlights
• Marketplaces
• Publishing
• Growth
• Update on MPI demerger
• Finance

3

Steady revenue growth and record high EBITDA margin of 20%

• Marketplaces: Revenue growth driven by verticals, and increased profits
• France, Spain, Norway and Brazil all showing strong development in Q3; soft quarter in Sweden
• Refocused ambitions for Shpock investment phase losses are declining

• Publishing: Digital continues to grow

• Subscription figures continue to grow well – supported by strong editorial achievements

• Schibsted Growth: Continues to expand

• High potential in personal finance early stage companies Hypoteket and Bynk with good traction
• Continued growth for Lendo, but with lower rate than in previous quarters. Planning launch in three new markets

MARKETPLACES

We continue to grow revenue and increase our operating margin

Schibsted Marketplaces Revenue and EBITDA margin*

Strong revenue growth in key markets

Share of total revenue, Y/Y revenue growth rates in brackets*

*) Pro forma, including contribution from joint ventures and associates as if we had consolidated the companies proportionately, adjusted for currency fluctuations

Verticals are the key revenue drivers

Revenue growth driven by verticals….

Q3 16 Q3 17 Q3 18

1) Pro forma, including contribution from joint ventures and associates as if we had consolidated the companies proportionately, adjusted for currency fluctuations 2) Verticals = Car, real estate, jobs

… of which real estate and cars are most important

Split of vertical revenues Q3 2018

In France, we saw continued growth in revenues and traffic – EBITDA margin 58% for Leboncoin.fr isolated

France¹ Revenues (NOK million) and EBITDA margin

• Fast growing revenues in verticals
• Price optimization supported by product enhancements in cars and real estate
• Ramping up in jobs
• Leboncoin.fr "isolated" EBITDA margin of 58%
• Acquired assets curbed margins with 3-4pp
• Marketing fluctuates significantly between quarters

Marketplaces

¹⁾ Including Leboncoin, MB Diffusion, Avendre A Louer and Kudoz *) Revenue growth in local currency

In Norway, strong growth was driven by volumes and new products

Norway

Revenues (NOK million) and EBITDA margin

• Strong revenue growth in jobs and real estate verticals
• Volume increase and price optimization supported by product enhancements in jobs, real estate and cars
• Continued good performance by "Blink" targeted distribution of real estate and jobs classifieds
• "Blink" newly launched in cars as well
• Soft development for display advertising

In Spain, we saw solid performance in jobs and cars – acceleration in real estate

Spain

Revenues (NOK million) and EBITDA margin

• Continued good revenue growth driven by professional revenues in jobs and cars in Q3
• Strong quarter in Cars, also supported by extra inventory due to implementation of WLTP¹
• Accelerating revenue growth in real estate driven by customer acquisition and revenue per customer and Fotocasa/Habitaclia synergies
• Double digit traffic growth for all key verticals

*) Revenue growth in local currency 1) Worldwide harmonized Light vehicles Test Procedure, which leads dealers to reduce their inventory ahead of implementation.

In Sweden, we saw revenue decline in display advertising

Sweden Revenues (NOK million) and EBITDA margin*

*) Revenue growth in local currency

• Jobs continue with solid growth

• Slight revenue contraction in cars
• Strong KPI development in cars compared to competitors
• 72 percent of dealerships that left Blocket earlier in 2018 have returned to Blocket
• Strong lead in terms of traffic, engagement and dealer listings
• Accelerated product development, improved sales execution
• Revenue decline in display advertising

We are continuing to increase revenue and reduce investment phase losses

Total Investment phase revenue

(EUR million including our

Total Investment phase EBITDA (EUR million including our proportionate share of JVs)

• proportionate share of JVs) Solid revenue growth in verticals in most markets
• Break-even or close to break-even most markets except Mexico and Shpock

*) Pro forma, including contribution from joint ventures and associates as if we had consolidated the companies proportionately, adjusted for currency fluctuations

Strong revenue growth, limited cost increase in Brazil

We have grown revenue by 63% through verticals and display

Million BRL (100%). Schibsted owns 50%

• Strong revenue growth driven by cars and real estate
• Increased ARPU in the verticals
• Financing partnership on cars contributes well to the development
• Low marketing spend in Q3 supports EBITDA margin

Refocused strategy in Shpock, moving towards break-even during 2019

• Moving towards a break-even during 2019
• Strong market position established in the UK and selected other markets
• More than 50 million downloads
• More than 10 million active users per month
• More than 2 billion page impressions per month

PUBLISHING

While digital is growing, we are managing the decline in print

Publishing operations Scandinavia Revenues and EBITDA-margin (NOK million)

VG delivered digital growth and solid margins. Soft development in Aftonbladet

VG and Aftonbladet

Revenues and EBITDA-margin (NOK million)

* Adjusted for currency fluctuations

Strong growth in digital subscriptions in VG Subscribers to VG+

In morning newspapers, we have grown digital subscriber numbers

Subscription based newspapers Revenues (NOK million) and EBITDA margin

*) "Complete" + weekend only

Q3 2018 18

Setting the stage with powerful journalism

3 brothers declared mentally disabled – without being informed

Norwegian and Swedish parliament representatives claiming unjustified reimbursements of expenses

Close coverage of the Swedish elections

SCHIBSTED GROWTH

Lendo – continued growth; investment in marketing

Lendo

Revenues (NOK million) and EBITDA margin

*) Adjusted for currency fluctuation

• Continued revenue growth driven by increased number of applications
• Slowdown in the market due to regulatory initiatives particularly in Norway
• Reduced margins due to marketing initiatives
• Strong value creation potential outside Nordics
• Plans to launch in Poland, Denmark and Austria in 2018/2019

DEMERGER OF INTERNATIONAL MARKETPLACES

We are aiming to maximize value creation through the demerger of international classifieds (MPI)

Strategic change allowing two new companies maximise value creation for shareholders, society, customers, users and partners

Schibsted: Nordic digital growth company with focus on consumer services, and with ability to create new winners

MPI: A fast-growing global leader in online classifieds with the ambition and tools to drive further structural change on the global scene

We form two strong, separately listed companies, which will optimize value creation based on distinct strategies

• A leading Nordic digital growth company

• Strong growth drivers in online classifieds and personal finance (selected examples)

• Publishing activities with growing digital positions and managing print decline

• FY 2017 revenues NOK 12.7 bn (+2%), EBITDA NOK 2.2 bn (+12%)*

Schibsted MPI (preliminary name)

• A pure play global leader in online classifieds
• Largest and fastest growing pure play online classifieds in Europe
• Market leading positions with long growth runway in attractive markets (selected examples)

• FY 2017 revenues NOK 4.8 bn (+21%), EBITDA NOK 1.1 (+55%)*

*) No adjustments related to Other/Headquarters are reflected, and the difference between the sum of the two entities and Schibsted Group is related to unallocated Other/Headquarters. Q3 2018

24

International marketplaces (MPI) will be listed on Oslo Stock Exchange – targeting April 2019

• Oslo Stock Exchange chosen as listing venue for MPI
• Well functioning market
• Strong shareholder base "inherited" from Schibsted
• Schibsted plans to retain a 60 percent ownership in MPI at the time of the listing, after selling down of up to 5 percent in the market and distributing shares to Schibsted's shareholders
• No plans to raise capital through a stock issue in MPI
• MPI will inherit Schibsted's dual share class structure initially

• Schibsted will support to collapse into only one share class in due course

• Interim Board with international profile and deep online classifieds industry insights is established

• Orla Noonan, Chair (board member of Schibsted ASA)
• Peter Brooks-Johnson (CEO of Rightmove)
• Terje Seljeseth (former head of online classifieds and Chief Product Officer in Schibsted)
• Extended, permanent Board to be appointed in connection with the split

Strong EBITDA in Q3 – margin increase from 19% to 20% Y/Y

EBITDA change Q3 17-Q3 18 (NOK million)

Finance

We have improved our EBITDA, increased our operating cash flow, and reduced our CAPEX

Finance

Q3 income statement Schibsted Group

	Third quarter
(NOK million)	2018	2017
Operating revenues	4,358	4,161
Operating expenses	(3,493)	(3,378)
Gross operating profit (EBITDA) ex Investment phase	972	903
Gross operating profit (EBITDA)	865	783
Depreciation and amortization	(181)	(158)
Share of profit (loss) of JVs and associates	1	(15)
Impairment loss	(0)	(2)
Other income and expenses	(6)	194
Operating profit (loss)	678	802
Net financial items	(27)	(23)
Profit (loss) before taxes	652	779
Taxes	(222)	(226)
Profit (loss)	429	553
EPS - Basic (NOK)	1.72	2.35
EPS - Basic adjusted (NOK)	1.74	1.45

Negative impact from Associates in Schibsted Growth

Positively affected by one-off in relation to the divestment of Hitta

Underlying tax rate stable below 30%

• Reported tax rate may deviate significantly from the nominal tax rates in our markets.
• The main reason is unrecognised tax benefits from tax losses in Schibsted Marketplaces Investment phase operations and product & tech development
• The reported tax rate will in the future converge towards the Underlying tax rate, as investment phase losses decline
• Underlying tax rate broadly represents a weighted average of the tax rates in the countries Schibsted is in tax position. Any reduction in corporate tax rates in countries like France would reduce this rate

	Q3 2018
Reported profit (loss) before taxes	652
Share of profit (loss) of joint ventures and associates	-1
Other losses for which no deferred tax benefit is recognised	164
Gain on sale of subsidiaries, joint ventures and associates	-13
Impairment losses	0
"Adjusted" tax base	803
Taxes	222
Adjusted "Underlying" effective tax rate	27.7%

We plan to reduce investments, while growing revenue

Q3 2018 – Continuing our steady growth

• Marketplaces: Revenue growth driven by verticals, and increased profits

• France, Spain, Norway and Brazil all showing strong development in Q3, soft quarter in Sweden
• Refocused ambitions for Shpock announced investment phase losses are declining

• Publishing: Overall stable development

• Subscription figures continue to grow well – supported by strong editorial achievements

• Schibsted Growth: Continues to expand

• Continued growth for Lendo, but with lower rate than in previous quarters. Planning launch in three new markets
• High potential in personal finance early stage companies Hypoteket and Bynk with good traction

APPENDICES

Spreadsheet containing detailed Q3 2018 and Historical and analytical Information can be downloaded from www.schibsted.com/ir

We continue to deliver profit improvement

Q3 2018 35

Continued revenue growth in Italy and Ireland, limited cost increase

Other Developed markets

Revenues and EBITDA-margin (NOK million)

• Continued solid revenue growth in verticals in all geographies
• Lower growth rate in display advertising
• Improved EBITDA margin as a result of tight cost control

Italy
	Ireland
Colombia	Hungary

We are targeting bolt-on acquisitions and consolidation in online classifieds – using our strong financial base

Net interest bearing debt currently below target range NIBD (NOK million) and NIBD/EBITDA

• Bolt-on acquisitions and consolidation are highly attractive in online classifieds
• Current financial leverage allows significant M&A activity
• We will continue to be slightly under levered according to our target range in the shortmedium term, while pursuing M&A strategy

Q3 2018 37

Finance

Key operations – Marketplaces; local currency

Third quarter			(NOK million)	Year to date	Year
yoy %	2017	2018	Norway developed phase	2018	2017	2017
	11% 409	456	Operating revenues	1,367	1,236	1,628
	8% 218	236	Operating expenses		740 697 940
	15% 191	220	EBITDA		627 539 688
	47%	48%	EBITDA-margin	46%	44%	42%
		Third quarter	(EUR million)	Year to date		Year
yoy %	2017	2018	France developed phase	2018	2017	2017
17%	63	74	Operating revenues		225 189 260

30%	26	34	Operating expenses	102		75 107
9%	37	40	EBITDA		123 114 153
	59%	54%	EBITDA-margin	55%	60%	59%

Third quarter			(EUR million)	Year to date		Year
yoy %	2017	2018	Spain developed phase	2018	2017	2017
17%	35	40	Operating revenues		119 101 138
15%	24	27	Operating expenses	83		78 103
20%	11	13	EBITDA	35	23	35
	31%	32%	EBITDA-margin	30%	23%	25%

Third quarter			(SEK million)	Year to date	Year
yoy %	2017	2018	Sweden developed phase	2018	2017	2017
	-5% 262	250	Operating revenues		742 781	1,035
	4% 105	109	Operating expenses		358 340 458
	-10% 157	141	EBITDA		384 441 577
	60%	56%	EBITDA-margin	52%	56%	56%

Key operations – Publishing and Growth

Publishing Growth

Third quarter			(NOK million)	Year to date		Year
yoy %	2017	2018	VG (Verdens Gang)	2018	2017	2017
	4% 428	443	Operating revenues	1,346	1,298	1,746
	17% 203		238 - online	728	623	863
	-9% 225		205 - offline	618	675	882
	2% 341	349	Operating expenses	1,090	1,036	1,407
	8% 87	94	EBITDA	256	263	339
	20%	21%	EBITDA-margin	19%	20%	19%

Third quarter			(NOK million)	Year to date		Year
	yoy %	2017	2018	Aftonbladet	2018	2017	2017
		-14% 457	392	Operating revenues	1,240	1,346	1,830
		-9% 213		195 - online	638	629	887
		-19% 244		197 - offline	602	718	943
		-5% 391	370	Operating expenses	1,130	1,177	1,568
		-68% 67	22	EBITDA	110	169	262
		15%	6%	EBITDA-margin	9%	13%	14%

Third quarter			(NOK million)	Year to date		Year
	yoy %	2017	2018	Subscription newspapers	2018	2017	2017
		-1% 837	825	Operating revenues	2,570	2,606	3,525
		11% 199		221 - online	670	610	840
		-5% 638		604 - offline	1,901	1,995	2,685
		-3% 774	750	Operating expenses	2,403	2,419	3,272
		21% 62	75	EBITDA	167	187	253
		7%	9%	EBITDA-margin	6%	7%	7%

Third quarter			(NOK million)	Year to date		Year
yoy %	2017	2018	GROWTH	2018	2017	2017
	-1% 460	453	Operating revenues	1,364	1,366	1,835
	3% 333	342	Operating expenses	1,030	1,076	1,443
	-12% 127	112	EBITDA	334	290	392
	28%	25%	EBITDA-margin	24%	21%	21%

IFRS 15 and IFRS 16 impact

IFRS 15 – New revenue recognition standard

• Implemented in Schibsted as of Q1 2018
• Positive effect on revenue and EBITDA of around NOK 5 million in Q3 2018. Negative effect of NOK 25 million YTD.
• Certain classifieds revenues being recognized over a longer period than previously
• The effect in Q4 is expected to be slightly positive
• No impact in Publishing nor Growth

IFRS 16 – New financial reporting standard for leasing

• IFRS 16 for leases will be implemented Q1 2019
• Current lease expenses indicate that this will have a positive impact of EBITDA in the magnitude of NOK 500 million

Key financial figures

NOK NOK million

CAPEX Net interest bearing debt

Note: NIBD/EBITDA according to bank definition.

Earnings per share - adjusted Net cash flow from operating activities

CAPEX (NOK million) and CAPEX/Sales (%) Net interest bearing debt (NOK) and

Cash flow

	Third quarter
(NOK million)	2018	2017
Profit (loss) before taxes	1,634	2,730
Depreciation, amortisation and impairment losses	658	470
Net effect pension liabilities	(54)	(77)
Share of loss (profit) of joint ventures and associates, net of dividends received	15	102
Taxes paid	(599)	(678)
Sales losses (gains) non-current assets and other non-cash losses (gains)	(20)	(1,547)
Change in working capital and provisions	(184)	(46)
Net cash flow from operating activities	1,451	954
Net cash flow from investing activities	(596)	(4,144)
Net cash flow before financing activities	855	(3,190)
Net cash flow from financing activities	(477)	2,704
Effect of exchange rate changes on cash and cash equivalents	(30)	1
Net increase (decrease) in cash and cash equivalents	348	(486)
Cash and cash equivalents at start of period	1,626	1,268
Cash and cash equivalents at end of period	1,974	783

Basic information

	A-share	B-share
Ticker
Oslo Stock Exchange:	SCHA	SCHB
Reuters:	SBSTA.OL	SBSTB.OL
Bloomberg:	SCHA:NO	SCHB:NO
Number of shares	108,003,615	130,684,373
Treasury shares (22 October 2018)	256,227	29,973
Number of shares outstanding	107,747,388	130,654,400
Free float*	74%	78%
Share price (22 October 2018)	NOK 288.00	NOK 272.00	*) Total number of shares excluding treasury shares
Average daily trading volume (shares)**	250,000	128,000	and shares owned by Blommenholm Industrier AS.
Market Cap total (22 October 2018)		NOK 66.7 bn., EUR 7.0 bn.,
		GBP 6.2 bn., USD 8.1 bn.,

**) Since 1 January 2018

Shareholder analysis

				% of
Rank Name 1 Blommenholm Industrier AS	A-Shares 28,188,589	B-shares 28,598,589	Total 56,787,178	vote 25.6 %
2 Baillie Gifford & Co.	7,383,818	6,068,659	13,452,477	6.6 %
3 Folketrygdfondet	6,024,910	11,159,950	17,184,860	5.9 %
4 Adelphi Capital LLP	4,919,301	3,838,008	8,757,309	4.4 %
5 NWT Media AS	4,274,300	4,063,000	8,337,300	3.9 %
6 Platinum Investment Management Ltd.	3,937,886	3,415,801	7,353,687	3.5 %
7 Fidelity Management & Research Company	3,964,888	2,678,911	6,643,799	3.5 %
8 Alecta pensionsförsäkring, ömsesidigt	3,464,000	3,633,600	7,097,600	3.2 %
9 AKO Capital LLP	3,068,268	1,566,085	4,634,353	2.7 %
10 The Vanguard Group, Inc.	2,522,646	2,656,885	5,179,531	2.3 %
11 Marathon Asset Management LLP	2,179,154	2,015,712	4,194,866	2.0 %
12 Echinus Partners LP	2,159,781	771,870	2,931,651	1.8 %
13 Luxor Capital Group, L.P.	1,228,850	5,357,564	6,586,414	1.5 %
14 Storebrand Kapitalforvaltning AS	1,508,186	1,550,897	3,059,083	1.4 %
15 Mitsubishi UFJ Trust and Banking Corporation	1,516,650	1,343,187	2,859,837	1.4 %
16 DNB Asset Management AS	1,170,837	3,729,876	4,900,713	1.3 %
17 Fidelity International	1,137,970	1,126,393	2,264,363	1.0 %
18 Alken Asset Management LLP	1,052,052	1,027,661	2,079,713	1.0 %
19 Nordea Funds Oy	952,275	1,786,720	2,738,995	0.9 %
20 Bodenholm Capital	1,046,572	0	1,046,572	0.9 %

Shareholders	SCHA	SCHB
% of foreign shareholders**	60.2 %	57.9 %
Number of shareholders	3,977	4,242
Number of shares	108,003,615	130,684,373
Shares ow ned by Schibsted	256,227	29,973

Largest country of ownership A+B (VPS)
Norw ay**	41.1 %
U.S.A.	24.9 %
U.K.	10.2 %
Sw eden**	8.1 %
Luxembourg	2.9 %
Cayman Islands	2.8 %
**) NWT Media AS is counted as a Sw edish shareholder.

Updated information and VPS register at:

www.schibsted.com/en/ir/Share/Shareholder-new

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

Source: Nasdaq OMX. Data as of 18 September 2018.

INVESTOR INFORMATION

Visit Schibsted's web site www.schibsted.com

IR contacts: Jo Christian Steigedal VP, Head of IR jcs@schibsted.no +47 415 08 733

Schibsted ASA Akersgata 55, P.O. Box 490 Sentrum, NO-0105 Oslo Tel: +47 23 10 66 00. E-mail: schibsted@schibsted.no