Vend Marketplaces ASA — Investor Presentation 2019

Oct 25, 2019

CEO Kristin Skogen Lund CFO Ragnar Kårhus 25 October 2019

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, forwardlooking 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.

Tenured and solid management supported by excellent divisional teams

Steady growth in Q3 for Schibsted Group

Continued good revenue development for key strategic areas

Focused strategy to mitigate the negative trend in digital advertising

Aftonbladet digital advertising revenue decline 25%

VG digital advertising revenue decline 10%

Significant drop in revenue from gaming industry

Tough competition in the Norwegian market

• New organizational structure in advertising sales across countries and titles
• Product development aiming to distinguish our offerings from programmatic commodities
• Strong quarter in Finn
• Flat development in Subscription based newspapers
• New advertising concepts introduced to the SME market

Strong financial position and capital dicipline

Low level of net interest bearing debt Targeting NIBD/EBITDA* 1-3x

Ongoing ambition for M&A and growth investments

1% share buyback in Q3 – to be continued up to 2% in Q4

*) NIBD = Net interest bearing debt (figures for Schibsted ex. Adevinta)

Nordic Marketplaces

9% revenue growth driven by strong development in key verticals

Solid revenue growth in all three markets

Share of total revenue, Y/Y revenue growth rate in brackets

Verticals increasingly important revenue driver Revenue split and EBITDA margin

Revenue growth adjusted for currency fluctuations. Verticals = Cars, real estate, jobs

The effect of IFRS 16 on EBITDA in Nordic Marketplaces was NOK 13 million in Q3 2019.

*) Primarily Finland

Sweden revenue growth in local currency, adjusted for termination of license revenue from Adevinta and "Mäklarprodukt transferred to News Media

Reinforced revenue growth driven by verticals and display advertising

Norway Marketplaces

12

Revenues (NOK million) and EBITDA margin

• 11% revenue growth in classifieds revenue, 15% revenue growth for advertising
• Growth driven by volume and ARPU improvement in cars and jobs
• Lower growth rate for real estate driven by a softer housing market
• Low marketing spend in Q3 supports margins improvement
• Continued good traffic growth, +10% Y/Y in Q3

0

1

Strong performance within motor vertical drives revenue growth recovery

Sweden Marketplaces

13

Revenues (NOK million) and EBITDA margin

• Turnaround of Blocket on track
• 8% revenue growth in classifieds revenue¹ 1% revenue decline for advertising¹
• Solid revenue growth in professional cars driven by new pricing model
• Private generalist volumes back to growth
• EBITDA decline as a result of increased investments in growth initiatives

1) Revenue growth in local currency, adjusted for termination of license revenue from Adevinta and "Mäklarprodukt" transferred to News Media

0

1

The effect of IFRS 16 on EBITDA in Marketplaces Sweden was NOK 3 million in Q3 2019

News Media

Strong growth in digital subscription revenues, outweighed by an increasingly challenging advertising market

News Media

Revenues (NOK million) and EBITDA margin

Digital subscription revenues (NOK million)* Digital subscribers approaches 700,000

Revenue growth is adjusted for currency fluctuations

The effect of IFRS 16 on EBITDA in News Media was NOK 46 million in Q3 2019. *) Revenues from pure digital subscriptions 15

Solid growth for VG+ subscriptions. Advertising revenue decline affects topline and margin

VG Revenues and EBITDA margin (NOK million)

Strong growth in digital subscription revenues Digital subscription revenues (NOK million)

Stable margins despite challenging advertising market

Aftonbladet Revenues and EBITDA margin (NOK million)

200 0 100 300 400 500 Q3 17 15% 6% Q3 18 6% (5%) Q3 19 -12% Offline revenues EBITDA margin Online revenues (EBITDA margin excl. IFRS 16) Strong growth in digital subscription revenues Digital subscription revenues (NOK million)

Revenue growth in local currency (SEK).

The effect of IFRS 16 on EBITDA in Aftonbladet was NOK 4 million in Q3 2019 17

Digital subscription growth and ARPU improvement main driver for stable revenue development

Subscription based newspapers

Revenues and EBITDA margin (NOK million)

Strong growth in digital subscription revenue

Digital subscription revenues (NOK million)

Driving digital growth in News Media through quality journalism and product innovation

Aftonbladet regional news destination

Daily podcasts Prime news destination – Close, tech driven coverage of Norwegian elections

	VALGRESULTAT 2019
	Sat attrict kemmure eder flyling	V
Norge . 8 Fylia V
Oppslutning	Distingto 2015 V	Sharido parti Ratto V-
Ap	24.8% -4.2 6
14	20,1% -2.5 %
Sp. 14.4 %	+6.9 P
Prop 8,2%	-1,2 14
MCC 6,8%	.28
SV 0.1%	.20 .
14.4 40%	-14 4
V 3,0%	-10-5
2.4 % 8	+1,8 /9
Na 24%	4237
	Opptat: Q 1181 % saggeoge: Q 1911 % endstig Ocean O 1011/6 formanities increations to:

Next: Financial Services & Growth

Continued growth in Sweden; market stabilization at a low level in Norway

Lendo Revenues (NOK million) and EBITDA margin

• Stable revenue performance in Sweden
• Stabilized development on a month by month basis in Norway
• Geographical expansion affected EBITDA negatively with NOK 27 million in Q3
• Good traction and high customer satisfaction in Denmark
• Reorganization initiated to provide a more efficient structure and enhance ability to expand

*Currency adjusted revenue growth

Accelerated revenue development in Schibsted Growth

Schibsted Growth

Home delivery subscription app "Svosj" launched in Norway

Leveraging Schibsted's* existing last mile home distribution network

• Unlimited free delivery
• To your doorstep before breakfast even in the weekends
• Platform to build additional subscription models
• Scalable model with intrinsic high margins dilutive to Distribution EBITDA margin first 2-3 years

Finance

Segment summary

Revenues EBITDA margin incl. IFRS 16

EBITDA change Q3 18 – Q3 19 (NOK million)

Q3 income statement Schibsted ex. Adevinta

Income statement	Third quarter
(NOK million)	2018	2019	NOK 85 million in positive IFRS 16
Operating revenues	3,008	3,032	effect on operating expenses and
Operating expenses	-2,498	-2,490	EBITDA
Gross operating profit (loss) - EBITDA	511	542
			NOK -70 million in IFRS 16 effect
Depreciation and amortisation	-121	-196	on depreciation
Share of profit (loss) of joint ventures and associates	-7	-8	Losses mainly related to Financial
Impairment loss			services venture portfolio
Other income and expenses	-12	-47	Related to headcount reductions in
Operating profit (loss)	371	290	News Media and restructuring cost
			following the Adevinta Spin-off
Net Financial Items	7	-25
Profit (loss) before taxes	377	266	NOK -18 million in IFRS 16 effect
			on net financial items
Taxes	-107	-77
Profit (loss)	270	189

Underlying tax rate

• The underlying tax rate, excluding Adevinta, is 23.8%
• The reported tax rate is 32% in year to date 2019
• Generally, Schibsted reports a tax rate exceeding the applicable nominal tax rates primarily as an effect of losses for which no deferred tax asset is recognized

Underlying tax rate - Schibsted excl. Adevinta	Year to date
(NOK million)	2019
Reported profit (loss) before taxes	690
Share of profit (loss) of joint ventures and associates	45
Other losses for which no deferred tax benefit is recognised	197
Adjusted tax base	933
Taxes	222
Underlying tax rate	23.8%

EBITDA, operating cash flow and CAPEX (ex. Adevinta)

Targeted investment opportunities combined with capital discipline

Recent examples

Organically build new business	Svosj – domestic distribution subscription
Venture activities	Growth investments: Capcito, InzpireMe, Habity
M&A	Jobbsafari (Sweden), Fædrelandsvennen (divestment)
International expansion	Lendo Denmark, Austria and Poland
Adjustment of capital	2% share buyback

Unchanged financial targets and policies

Key takeaways Q3 2019: Continued financial and strategic progress

12% growth in revenues from online classifieds verticals	30% growth in revenue from pure digital subscriptions in News Media	Improved growth for Next, including Lendo
Soft development in digital advertising markets	Close follow-up of cost levels in News Media	Capital discipline – continued share buybacks up to 2%

Appendices

Spreadsheet containing detailed Q3 2019 and historical and analytical information can be downloaded from www.schibsted.com/ir

Key operations

News Media	Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	1,754	1,834	-4%	5,521	5,688	-3%
EBITDA	196	186	5%	575	468	23%
EBITDA margin	11%	10%		10%	8%
EBITDA excl. IFRS 16	150	186	-19%	437	468	-7%
VG	Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	418	443	-6%	1,316	1,346	-2%
- of which online revenues	231	238	-3%	750	728	3%
- of which print revenues	187	205	-9%	566	618	-8%
EBITDA	64	94	-32%	210	256	-18%
EBITDA margin	15%	21%		16%	19%
EBITDA excl. IFRS 16	60	94	-36%	198	256	-22%
	Third quarter			Year to date
Aftonbladet
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	347	392	-11%	1,093	1,240	-12%
- of which online revenues	166	195	-15%	569	638	-11%
- of which print revenues	181	197	-8%	523	602	-13%
EBITDA	21	22	-5%	84	110	-23%
EBITDA margin	6%	6%		8%	9%
EBITDA excl. IFRS 16	17	22	-22%	74	110	-33%
Subscription Newspapers	Third quarter
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	830	825	1%	2,583	2,570	1%
- of which online revenues	257	221	16%	764	670	14%
- of which print revenues	572	604	-5%	1,819	1,901	-4%
EBITDA	87	75	15%	235	167	41%

EBITDA excl. IFRS 16 79 75 4% 211 167 27%

		Nordic Marketplaces	Third quarter			Year to date
		(NOK million)	2019	2018	Change	2019	2018	Change
		Operating revenues	769	707	9%	2,304	2,129	8%
		EBITDA	387	345	12%	1,098	973	13%
		EBITDA margin	50%	49%		48%	46%
		EBITDA excl. IFRS 16	374	345	8%	1,060	973	9%
Year to date		Marketplaces Norway	Third quarter			Year to date
		(NOK million)	2019	2018	Change	2019	2018	Change
		Operating revenues	505	456	11%	1,525	1,367	12%
		EBITDA	266	220	21%	760	627	21%
		EBITDA margin	53%	48%		50%	46%
		EBITDA excl. IFRS 16	258	220	17%	734	627	17%
		Marketplaces Sweden	Third quarter			Year to date
		(NOK million)	2019	2018	Change	2019	2018	Change
		Operating revenues	240	230	4%	702	695	1%
		EBITDA	118	130	-9%	333	359	-7%
		EBITDA margin	49%	56%		47%	52%
		EBITDA excl. IFRS 16	115	130	-12%	325	359	-10%

Key operations

Financial Services	Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	275	261	5%	794	762	4%
EBITDA	51	88	-42%	137	264	-48%
EBITDA margin	19%	34%		17%	35%
EBITDA excl. IFRS 16	49	88	-44%	130	264	-51%

Lendo Group	Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	230	221	4%	664	644	3%
EBITDA	47	84	-44%	124	263	-53%
EBITDA margin	20%	38%		19%	41%
EBITDA excl. IFRS 16	46	84	-45%	121	263	-54%

Lendo established		Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	221	221	0%	650	644	1%
EBITDA	74	84	-12%	205	263	-22%
EBITDA margin	34%	38%		32%	41%
EBITDA excl. IFRS 16	73	84	-13%	202	263	-23%

Adevinta		Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	1,624	1,381	18%	4,819	4,171	16%
EBITDA	503	354	42%	1,444	1,006	44%
EBITDA margin	31%	26%		30%	24%
EBITDA excl. IFRS 16	469	354	32%	1,342	1,006	33%

Growth		Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	517	463	12%	1,530	1,424	7%
EBITDA	22	23	-5%	62	65	-5%
EBITDA margin	4%	5%		4%	5%
EBITDA excl. IFRS 16	14	23	-40%	37	65	-44%

Third quarter			Year to date
2019	2018	Change	2019	2018	Change
307	259	18%	893	779	15%
10	1	>100%	23	-3	>100%
3%	0%		3%	0%
6	1	>100%	12	-3	>100%

Prisjakt	Third quarter			Year to date
(NOK million)	2019	2018	Change	2019	2018	Change
Operating revenues	64	67	-4%	209	199	5%
EBITDA	13	23	-43%	51	61	-16%
EBITDA margin	20%	35%		25%	31%
EBITDA excl. IFRS 16	12	23	-48%	48	61	-22%

Cash flow Schibsted ex Adevinta

Cash flow - Schibsted excl. Adevinta	Third quarter
(NOK million)	2019
Profit (loss) before taxes	266
Depreciation, amortisation and impairment losses	196
Net effect pension liabilities	(5)
Share of loss (profit) of joint ventures and associates, net of dividends received	9
Taxes paid	(54)
Sales losses (gains) non-current assets and other non-cash losses (gains)	0
Change in working capital and provisions	46
Net cash flow from operating activities	457
Development and purchase of intangible assets, and property, plant and equipment	(100)
Acquisition of subsidiaries, net of cash acquired	(9)
Proceeds from sale of intangible assets, and property, plant and equipment	2
Proceeds from sale of subsidiaries, net of cash sold	(1)
Net sale of (investment in) other shares	(46)
Net change in other investments	(8)
Net cash flow from investing activities	(163)
Net cash flow from financing activities	(698)
Effects of exchange rate changes on cash and cash equivalents	(2)
Net increase (decrease) in cash and cash equivalents	(406)

Q3 income statement Schibsted Group

Income statement	Third quarter
(NOK million)	2018	2019
Operating revenues	4,358	4,600
Operating expenses	(3,493)	(3,554)	NOK 119 million in positive IFRS 16 effect
Gross operating profit (loss) - EBITDA	865	1,045	on EBITDA
			NOK 99 million related to IFRS 16 effect
Depreciation and amortisation	(181)	(297)
Share of profit (loss) of joint ventures and associates	1	3
Impairment loss	(0)	(0)	Mainly related to headcount reductions in
Other income and expenses	(6)	(61)	News Media and restructuring cost following
Operating profit (loss)	678	691	the Adevinta Spin-off
Net Financial Items	(27)	(51)	NOK 22 million related to IFRS 16 effect
Profit (loss) before taxes	652	640
Taxes	(222)	(238)
Profit (loss)	429	402
Non-controlling interests	19	109	Affected by reduced ownership in Adevinta
Owners of the parent	410	292
Earnings per share (NOK)
EPS - basic (NOK)	1.72	1.23
EPS - basic adjusted (NOK)	1.74	1.43

Improved EBITDA in Q3 – consolidated figures

EBITDA, operating cash flow and CAPEX

Cash flow Schibsted Group

Cash flow - Consolidated	Third quarter
(NOK million)	2018	2019
Profit (loss) before taxes	652	640
Depreciation, amortisation and impairment losses	181	297
Net effect pension liabilities	13	(5)
Share of loss (profit) of joint ventures and associates, net of dividends received	14	10
Taxes paid	(188)	(182)
Sales losses (gains) non-current assets and other non-cash losses (gains)	(13)	(4)
Change in working capital and provisions	(94)	63
Net cash flow from operating activities	566	820
Net cash flow from investing activities	(226)	(277)
Net cash flow from financing activities	(41)	(726)
Effects of exchange rate changes on cash and cash equivalents	(12)	9
Net increase (decrease) in cash and cash equivalents	286	(174)
Cash and cash equivalents at start of period	1,688	4,578
Cash and cash equivalents at end of period	1,974	4,403

Underlying tax rate stable slightly below 30%

■ The underlying tax rate is stable, slightly below 30%.

• The reported tax rate is 38% in the third quarter of 2019, compared to 44% in the same period in 2018.
• Generally, Schibsted reports a tax rate exceeding the applicable nominal tax rates primarily as an effect of losses for which no deferred tax asset is recognized. That effect has declined in the third quarter of 2019 compared to the third quarter of 2018.

Underlying tax rate - Consolidated	Year to date
(NOK million)	2019
Reported profit (loss) before taxes	1,721
Share of profit (loss) of joint ventures and associates	30
Other losses for which no deferred tax benefit is recognised	447
Gain on sale of subsidiaries, joint ventures and associates	(6)
Impairment losses	-
Adjusted tax base	2192
Taxes	646
Underlying tax rate	29.5%

Key financial figures - consolidated

NOK NOK million

Net interest bearing debt CAPEX

Ratio of Net interest bearing debt/LTM EBITDA

Net interest bearing debt (NOK) and

Earnings per share - adjusted Net cash flow from operating activities

Note:

NIBD/EBITDA according to bank definition.

CAPEX (NOK million) and CAPEX/Sales (%)

43

Schibsted will continue to be a supportive long-term owner of Adevinta

• Schibsted ASA will continue to be an active, significant long-term owner of Adevinta the global leading online classifieds company
• Schibsted will exercise its ownership through representation on Adevinta's Board of Directors
• Adevinta will be well equipped to play an active role in any structural development of the marketplace Industry
• Schibsted supported the EGM resolution 24 October 2019 confirming an amalgamation into one share class. This leaves Adevinta with a simple governance structure without ownership or voting limitations

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 (17 October 2019)	1,950,267	768,857
Number of shares outstanding	106,053,348	129,915,516
Free float*	72%	76%
Share price (11 October 2019)	NOK 262.30	NOK 249.60
Average daily trading volume (shares)**	261,000	283,000
Market Cap total (11 October 2019)	2019 NOK 60.9 bn., EUR 6.1 bn.,
	GBP 5.4 bn., USD 6.7 bn.,

*) Total number of shares excluding treasury shares and shares owned by Blommenholm Industrier AS. **) Since 1 January

Shareholder analysis

Shareholder analysis
Rank Name	A-Shares	B-shares	Total	%	Shareholders	SCHA	SCHB
1 Blommenholm Industrier AS	28,541,262	30,621,205	59,162,467	25.0 %	% of foreign shareholders	54.0 %	56.8 %
2 Folketrygdfondet	7,826,190	10,473,569	18,299,759	7.7 %	Number of shareholders	3,959	4,259
3 Baillie Gifford & Co.	7,509,615	5,056,112	12,565,727	5.3 %	Number of shares	108,003,615	130,684,373
4 Fidelity Management & Research Company	7,240,674	4,013,336	11,254,010	4.8 %	Shares owned by Schibsted	1,950,267	768,857
5 NWT Media AS	4,291,281	4,063,000	8,354,281	3.5 %
6 The Vanguard Group, Inc.	3,213,964	2,788,609	6,002,573	2.5 %	Largest country of ownership A+B (VPS)
7 Luxor Capital Group, L.P.	0	5,664,872	5,664,872	2.4 %	Norway	46.0%
8 Alecta pensionsförsäkring, ömsesidigt	0	5,193,000	5,193,000	2.2 %	United States	22.1%
9 Adelphi Capital LLP	2,136,561	2,789,953	4,926,514	2.1 %	United Kingdom	15.3%
10 York Capital Management L P.	725,472	4,102,899	4,828,371	2.0 %	Luxembourg	4.3%
11 Goldman Sachs International	1,570,931	2,440,559	4,011,490	1.7 %	Ireland	3.7%
12 JPMorgan Chase Bank GTS CL A/C Escrow Account	2,533,978	1,247,907	3,781,885	1.6 %	Sweden	3.3%
13 Marathon Asset Management LLP	1,948,034	1,589,035	3,537,069	1.5 %
14 BlackRock Institutional Trust Company, N.A.	194,564	3,001,832	3,196,396	1.4 %
15 KLP Forsikring	800,050	2,344,514	3,144,564	1.3 %
16 Fidelity Institutional Asset Management	2,380,946	705,332	3,086,278	1.3 %	Updated information	and VPS register at:
17 Storebrand Kapitalforvaltning AS	1,415,602	1,611,139	3,026,741	1.3 %	https://schibsted.com/ir/shareholders/
18 DNB Asset Management AS	1,299,591	1,682,189	2,981,780	1.3 %
19 UBS AG London	576,084	2,296,487	2,872,571	1.2 %	The shareholder ID data are provided by Nasdaq OMX. The data are obtained through the analysis of beneficial ownership and fund manager
20 Mitsubishi UFJ Trust and Banking Corporation	1,516,827	1,326,218	2,843,045	1.2 %	information provided in replies to disclosure of ownership notices issued to all custodians on the Schibsted share register. Whilst every reasonable

Source: Nasdaq OMX. Data as of 17 September 2019

Shareholders	SCHA	SCHB
% of foreign shareholders	54.0 %	56.8 %
Number of shareholders	3.959	4 259
Number of shares	108,003,615	130.684.373
Shares owned by Schibsted	1,950,267	768.857

Largest country of ownership A+B (VPS)
Norway	46.0%
United States	22.1%
United Kingdom	15.3%
Luxembourg	4.3%
Ireland	3.7%
Sweden	3.3%

Updated information and VPS register at: https://schibsted.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 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.

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