Vend Marketplaces ASA

Management Reports • Apr 1, 2020

New reporting structure effective Q1 2020

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New reporting structure effective Q1 2020 – Schibsted Products & Technology

Rationale behind the changes

• The new reporting structure will provide better transparency as costs will be allocated to the operating segments based on what creates value, i.e. costs will be presented where benefits occur
• Internally, this is combined with improved processes to facilitate stricter prioritizations and improved cost control

Main changes in operating segment reporting

• Costs from centralized product & tech developments and services are allocated to the operating segments, affecting EBITDA for the operating segments
• Examples for such products and services are publishing platforms and tools, advertising solutions, privacy services, etc.
• Allocation is done down to the segment level (Nordic Marketplaces), not allocated to the brands (e.g. Finn)
• Main effect for News Media as it has centralized almost all their product & tech staff while other segments still have local teams
• For revenues, only Other/Headquarters and the elimination line are affected

Schibsted Products & Technology EBITDA effects 2019 (NOKm)

Reconciliation of old and new segment reporting – revenues, EBITDA

NOK million
SCHIBSTED GROUP	Full year 2019	Full year 2018	Full year 2019	Full year 2018	Full year 2019	Full year 2018
	old	old	restated	restated	change	change
Operating revenues
Nordic Marketplaces	3,062	2,843	3,062	2,843
News Media	7,465	7.733	7.465	7.733
Financial Services	1.054	1.011	1.054	1.011
Growth	2,165	1,966	2.165	1.966
Other/Headquarters	797	714	579	493	(218)	(221)
Eliminations within Schibsted excl. Adevinta	(1, 890)	(1,756)	(1,672)	(1, 535)	218	221
Schibsted excl. Adevinta	12,653	12,511	12,653	12,511	0	$\bf{0}$
Adevinta	6,664	5,665	6,664	5,665
Eliminations between Schibsted and Adevinta	(242)	(117)	(242)	(117)
Schibsted Group	19,075	18,059	19,075	18,059
EBITDA
Nordic Marketplaces	1,421	1,267	1,360	1,205	(60)	(62)
News Media	760	682	633	571	(128)	(111)
Financial Services	170	327	169	325	(1)	(1)
Growth	124	99	98	73	(26)	(26)
Other/Headquarters	(499)	(535)	(284)	(335)	215	200
Schibsted excl. Adevinta	1,977	1,840	1,977	1,840
Adevinta	1,929	1,427	1,929	1,427
Schibsted Group	3,906	3,268	3,906	3,268

New reporting structure effective Q1 2020 – News Media

Rationale behind the changes

• The main reason for the change is to align reporting with the operational model
• News Media has become more integrated over the last years – organized as a matrix with key functions organized centrally – with focus on efficiencies across all brands
• More detailed revenue and cost split provides more transparency for business development

Main changes in operating segment reporting

• More detailed revenue reporting, splitting out the main drives advertising and subscriptions – including digital* share – as well as casual sales (single copy newspapers)
• "Online revenues" definition discontinued which included partly allocation of combined subscription products; replaced by "Digital* revenues"
• Operating expenses now split into Personnel expenses and Other expenses
• No EBITDA split by brand but for the operating segment as a whole

New reporting structure News Media

News Media	Full year 2019	Full year 2018
News Media total
Operating revenues	7.465	7.733
YOY revenue growth	$-3%$	0%
Operating expenses	(6, 705)	(7,051)
EBITDA	760	682
EBITDA-margin	10%	9%
VG
Operating revenues	1.793	1.839
YOY revenue growth	$-3%$	5%
Operating expenses	(1,500)	(1, 509)
EBITDA	293	331
EBITDA-margin	16%	18%
Aftonbladet
Operating revenues	1.475	1.678
YOY revenue growth (in SEK)	$-12%$	$-5%$
Operating expenses	(1, 367)	(1, 487)
EBITDA	108	190
EBITDA-margin	7%	11%
Subscription Newspapers
Operating revenues	3.496	3.484
YOY revenue growth	0%	$-1%$
Operating expenses	(3, 187)	(3, 243)
EBITDA	309	242
EBITDA-margin	9%	7%
Other News Media (1)
Operating revenues	701	732
YOY revenue growth	$-4%$	12%
Operating expenses	(650)	(812)
EBITDA	50	(80)
EBITDA-margin	7%	$-11%$

Old reporting New reporting

	Full year	Full year
News Media	2019	2018
	restated	restated
News Media total
Advertising revenues	2.559	2.877
-of which digital	1.634	1.817
Subscription revenues	2.550	2.393
-of which digital	901	726
Casual sales	1.358	1.481
Other revenues	998	982
Operating revenues	7.465	7.733
YOY revenue growth	$-3%$	0%
Personnel expenses	(2,607)	(2,613)
Other expenses	(4,225)	(4, 549)
Operating expenses	(6.833)	(7.162)
EBITDA	633	571
EBITDA-margin	8%	7%
Split revenue per brand
VG	1.793	1,839
Aftonbladet	1.475	1,678
Subscription newspapers	3.496	3.484
Other (1)	701	732
Operating revenues	7,465	7,733

More detailed revenue split effective Q1 2020 – Nordic Marketplaces

Rationale behind the changes

• Providing more transparency on business development

Main changes in operating segment reporting

• Revenues split in categories Classifieds, Advertising, and Other

New revenue split Nordic Marketplaces

Old reporting New reporting

	Full year 2019	Full year 2018
Marketplaces Norway
Operating revenues	2,012	1,826
YOY revenue growth	10%	12%
Operating expenses	(1,030)	(1, 013)
EBITDA	981	813
EBITDA-margin	49%	45%
Marketplaces Sweden
Operating revenues	951	925
YOY revenue growth (in SEK)	3%	$-5%$
Operating expenses	(518)	(456)
EBITDA	433	469
EBITDA-margin	46%	51%

	Full year	Full year
Nordic Marketplaces	2019	2018
	restated	restated
Marketplaces Norway
Classifieds revenues	1,562	1,402
Advertising revenues	209	200
Other revenues	241	225
Operating revenues	2,012	1,826
YOY revenue growth	10% .	12%
Operating expenses	(1,030) _________	(1, 013)
EBITDA	981	813
EBITDA-margin	49%	45%
Marketplaces Sweden
Classifieds revenues	753	721
Advertising revenues	186	187
Other revenues	12	17
Operating revenues	951	925
YOY revenue growth	3%	$-8%$
Operating expenses	(518)	(456)
EBITDA	433	469
EBITDA-margin	46%	51%

New revenue split in consolidated income statement

Old reporting		New reporting

Changes from old to new reporting:

• Split out Classified revenues from Advertising revenues (effect 2019: Advertising reduced by NOK 7,446m, Classified revenues increasing accordingly)
• Allocate Mittanbud from Advertising revenues to digital Subscription revenues (effect 2019: Advertising reduced by NOK 110m, Subscription revenues increasing accordingly)
• Allocate Servicefinder, Viktklubb/Vektklubb and Møteplassen from Other revenues to digital Subscription revenues (effect 2019: Other revenues reduced by NOK 53m, Subscription revenues increasing accordingly)