Quarterly results Q1 2011

Quarterly results
Q1 2011
Rolv Erik Ryssdal, CEO
Trond Berger, CFO
Terje Seljeseth,
CEO Schibsted Classified Media
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 forwardlooking 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.
Q1 2011
2
Agenda




Q1 highlights
Media Houses in Q1
Online classifieds in Q1
Income statement and
Financials
 Schibsted Classified
Media
 Outlook
Q1 2011 highlights
 Continued profit improvement and top line growth in Q1
 EBITDA NOK 447 million (418 in Q1 2010). Revenue growth 7%
 Strong quarter for Online operations.
 Online classifieds revenue growth of 28%.
Good online growth in Media houses
 Additional new ventures in Schibsted Classified Media
approaching break even
 Increased investments in new Online classifieds positions by
NOK 32 million Y/Y, building platform for further growth and value creation
 Scandinavian advertising markets continue to improve
 Advertising revenues in Media houses increased 8%
 Media Norge merger approved
 Challenging circulation volume for single copy sold newspapers
 Improved market positions on mobile and web
Q1 2011
4
Q1 2011 highlights
Underlying
Revenue Change
EBITDA margin
Q1 2011
y/y*
Q1 11 Q1 10
Group
3 496
7%
13 %
13 %
Media Houses Scandinavia
2 436
2%
10 %
11 %
Media Houses International
242
7%
-2 %
-3 %
Online Classifieds
830
28 %
31 %
30 %
*) Growth adjusted for acquisitions, divestments and currency fluctuations
Q1 2011
5
Revenue split Q1 2011
Total revenue MNOK 3,496
Online
classifieds
24 %
Media
Houses
other
7%
Media
Houses
online
11 %
Media
Houses
offline
advertising
28 %
Media
Houses
single copy
18 %
Media
Houses
subscription
13 %
Q1 2011
6
(23)
(11)
Q1 2011
EBITDA Q1 2011
(32)
Other
92
Online
classifieds New
Investments
300
Online
classifieds
Established
418
(13)
Media Houses
other
(30)
SCH Sverige
46
VG
500
Media Norge ex
Finn
EBITDA Q1
2010
Million NOK
Continued EBITDA growth in Q1
600
447
400
Increased
investment in
Blocket roll outs
200
100
0
7
Q1 2011 operations
Online classifieds
Media Houses
Finn.no (owned by
Media Norge)
Media Norge
Schibsted Classified
Media
VG
Hitta (owned by
Schibsted Sverige)
Schibsted Sverige
International
Key figures Q1 2011:
Revenue:
MNOK 830
MNOK 2,678
EBITDA:
MNOK 261
MNOK 244
Other/eliminations:
Revenue MNOK -12
EBITDA MNOK -58
Q1 2011
8
Agenda




Q1 highlights
Media Houses in Q1
Online classifieds in Q1
Income statement and
Financials
 Schibsted Classified
Media
 Outlook
Media Houses
Improvement for morning newspapers,
challenging volume development for tabloids
MNOK
+3%*
3000
30 %
2500
25 %
2000
20 %
1500
15 %
1000
10 %
500
5%
0
0%
-500
-5 %
Q1
Q2
Q3
Q4
2009
Q1
Q2
Q3
2010
Revenue
Q4
Q1
2011
EBITDA margin
*) Underlying growth, adjusted for currency effects, acquired/divested operations.
Note: 2009 and 2010 figures are from Business Areas Media Houses Scandinavia/International.
Q1 2011
10
Media Houses Scandinavia
Improved markets and firm
cost control in Media Norge


Q1 advertising revenues in
Media Norge media houses increased 9%

Recruitment +10%

Real estate +8%
Circulation revenues increased 1% as a result of
price increases. Circulation volume declined 2%
EBITDA NOK 150 million (NOK 104 million)
Media Norge media houses
MNOK

1200
1000
800
600
400
200
0
13%
Q1 10
Revenues
30 %
25 %
20 %
15 %
10 %
5%
0%
Q1 11
EBITDA margin
 Strong performance for online newspapers
contribute to the improvement

Collaboration projects continue to enhance
efficiency.

Aftenposten launched iPad edition in Q1. Will be
introduced as a paid for product in Q2
Q1 2011
11
Media Houses Scandinavia
Broad improvement in
Media Norge media houses
Aftenposten group
600
Bergens Tidende
30 %
300
500
25 %
250
400
20 %
200
6%
13 %
300
200
7%
15 %
150
10 %
100
+8%
13 %
13 %
Stavanger Aftenblad
Fædrelandsvennen
30 %
180
30 %
120
25 %
150
25 %
100
20 %
120
20 %
80
20 %
15 %
60
15 %
10 %
40
15 %
90
10 %
60
100
5%
50
5%
30
0
0%
0
0%
0
Q1 10
Revenue
Q1 11
EBITDA margin
Q1 10
Revenue
Q1 11
EBITDA margin
+9%
14 %
4%
Q1 10
Revenue
5%
20
0%
0
Q1 11
EBITDA margin
30 %
+4%
25 %
10 %
3%
3%
5%
0%
Q1 10
Revenue
Q1 11
EBITDA margin
EBITDA figures excluding associated companies.
Printing activities were carved out of the Media Houses as of Q1 2011. 2010
figures are calculated for comparison purpose.
Q1 2011
12
Merger with Media Norge
 Merger finalized and effective as of 12 May 2011
 Improving the opportunity for cooperation across the Schibsted group
 Values Media Norge at NOK 7,25 bn. including cash. Main assets:
1. Media Houses Aftenposten, Bergens Tidende, Stavanger Aftenblad, and Fædrelandsvennen –
each clear leaders in their respective markets, and with potential for further operational
improvements
2. 50.01% of Finn.no – fast growing clear market leader in Online classifieds in Norway
 Close to half of the value linked to online activities
 Increasing Schibsted’s exposure to Finn.no from 83% to 90%
 Settlement for the merger 1/3 cash and 2/3 shares in Schibsted ASA
 One shareholder, representing 0.2% of the shares in Media Norge, has filed a
law suit contesting that the merger is invalid
 Schibsted’s legal advisors consider the claim to be without legal basis
Q1 2011
13
Media Houses Scandinavia
Circulation decline for print
newspapers in Sweden
Schibsted Sverige media house*
50 %
800
40 %
600
30 %
400
20 %
MSEK
1000
6%
200
10 %
0
0%
Q1 10
Revenues
MSEK
Revenues

Reduced single copy circulation volume puts
pressure on circulation revenues

19% online growth*. Strong growth and
profit development for online growth portfolio
(Schibsted Tillväxtmedier)

Q1 EBITDA SEK 23 million (SEK 22 million)

Print advertising revenue increased 3%

Investor Relations advertising segment has been
substantially reduced due to regulatory change

Circulation revenues increased 2% in Q1,
helped by price increases
EBITDA margin
8%
Q1 10
Schibsted Sverige Q1 EBITDA SEK 57 million
(78 million)
Q1 11
Svenska Dagbladet group
300
250
200
150
100
50
0

60 %
50 %
40 %
30 %
20 %
10 %
0%
Q1 11
EBITDA margin
*) Excluding Hitta.se, which is reported as part of the Business Area Online classified
Q1 2011
14
Media Houses Scandinavia
Circulation volume decline
hampers Aftonbladet
MSEK
Print
500
50 %

Q1 EBITDA SEK 27 million (SEK 42 million)
400
40 %

Advertising revenue increased by 2%
300
30 %

Circulation revenues declined due to 12% volume
decline and scale down of low margin supplements.
Revenue decline of 10% excluding supplements

Cost reduced by 8% because of lower volumes and
reduced marketing investments

Revenue reduced by 2% in Q1. Affected negatively
with 4 million of one off adjustment of revenue

Q1 EBITDA SEK 8 million (SEK 21 million)

8% EBITDA margin (20%) in Q1. Increased activity
level and development cost result in margin pressure

iPad version of the daily newspaper
launched in April 2011
200
6%
100
20 %
10 %
0
0%
Q1 10
Revenues
Q1 11
EBITDA margin
MSEK
Online
120
100
80
60
40
20
0
8%
Q1 10
Revenues
60 %
50 %
40 %
30 %
20 %
10 %
0%
Q1 11
EBITDA margin
Q1 2011
15
Media Houses Scandinavia
Challenging circulation,
advertising decline in VG
MNOK
Print

Circulation revenues decreased by 6% in Q1 Y/Y as
a consequence of continued circulation decline
30 %

Circulation volume decline of 12% on weekdays
20 %

Print advertising revenues decreased 9% after
volume decline and price pressure
500
50 %
400
40 %
300
12%
200
100
10 %
0
0%
Q1 10
Revenues
EBITDA margin
MNOK
VG.no
80
50 %
60
40 %
22%
40
20
10 %
0
0%
Revenues
Q1 11
EBITDA margin
Negative Easter effect of around NOK 2 million

EBITDA NOK 45 million (NOK 66 million)

3% growth in revenues, excluding Nettby, that was
closed down in December 2010

30 %
20 %
Q1 10

Q1 11
Advertising revenues increased by 9%, whereas
other revenues declined

EBITDA NOK 14 million (NOK 20 million). EBITDA
margin 22% (28%)

Strong traffic growth for digital products, particularly
smart phone version
Q1 2011
16
Media Houses Scandinavia
Single copy sold newspapers –
The Q1 2011 facts
 Reduced circulation revenue due to
volume decline
Print volume decline: 10-12%
2011 2010 Change  Operating expenses on print
EBITDA
- print
- online
35
27
8
63
42
21
-28
-15
-13
reduced
 Increased operating expenses
online due to more cost allocated to
online and product development
 Reduced circulation revenue due to
Print volume decline: 12%
2011 2010 Change 
EBITDA
56
86
-30

- print
45
66
-21
- online
8
17
-9
volume decline
Operating expenses reduced on print
Increased operating expenses online
due to product development and
periodisation of bonuses
Q1 2011
17
Media Houses Scandinavia
Single copy sold newspapers –
Actions
1. Efforts to slow down the circulation volume decline


Adapt and improve the products
Optimize the cover price structure,
price increases will be considered
2. Adjust the cost base to the revenue development.


Optimization of the organization
Optimization of printing, distribution and business terms
3. Efforts to further increase the digital revenues



Monetizing the rapid growing mobile traffic
Experiment with user paid tablet versions
Further increase sales efficiency for web versions
Q1 2011
18
Media Houses International
Good growth in France and Baltics.
Still challenging in Spain
Baltics

Good advertising growth in Estonia, partly helped
by elections

Particularly good growth for Kanal 2
20
40 %
15
30 %
10
9%
5
10 %
0

0%
Q1 10
Firm cost control and margin improvement
Revenue
France*



Spain

Tough competition in the free newspaper market
met by increased distribution for 20 Minutes
12% revenue growth, but flat margin development
due to increased coverage

EBITDA margin
15
45 %
10
30 %
5
-7%
0
Continued good growth in traffic and revenue for
online activities


Q1 11
-5
Continued harsh market environment in Spain
Revenues declined 11%
Flat cost development result in margin decrease
15 %
0%
-15 %
Q1 10
Revenue
Q1 11
EBITDA margin
9
90 %
6
60 %
3
30 %
-26%
0
-3
Good development for online activities
20 %
0%
-30 %
Q1 10
Revenue
Q1 11
EBITDA margin
*) Chart illustrates 100% of the company. Schibsted owns 50%
Q1 2011
19
Agenda




Q1 highlights
Media Houses in Q1
Online classifieds in Q1
Income statement and
Financials
 Schibsted Classified
Media
 Outlook
Online classifieds
Continued strong growth and
margin improvement
+28%*
MNOK
900
90 %
800
80 %
700
70 %
600
60 %
500
50 %
400
40 %
300
30 %
200
20 %
100
10 %
0
0%
Q1
Q2
Q3
Q4
2009
Revenue
EBITDA margin
Q1
Q2
Q3
2010
Q4
Q1
2011
EBITDA margin ex SCM New Ventures
*) Underlying growth, adjusted for currency effects, acquired/divested operations.
Q1 2011
21
Online classifieds
Strong growth and
high margins maintained in Finn.no
EBITDA of NOK 131 million in Q1* (NOK 88 mill)
Finn.no

Q1 EBITDA margin 47% (42%)

Operating revenues NOK 277 million,
a growth of 31%, helped by volume and price, as
well as new revenue models
300
250
200
150
100
50
0


Recruitment 45%

Real estate 14%

Car 32%

Finn Torget (generalist) 25%

Finn Reise (travel) 46%
MNOK

47%
Q1 10
60 %
50 %
40 %
30 %
20 %
10 %
0%
Q1 11
Revenues
EBITDA margin
Increased market share in brand/display
advertising, which comprises around ¼ of Finn.no
revenues
*) EBITDA excluding associated companies
Q1 2011
22
Online classifieds
Stable growth rate and
high margins in Blocket/Bytbil
EBITDA of SEK 90 million in Q1 (SEK 84 mill)

Q1 operating margin 56% (59%)

Operating revenues SEK 161 million, a growth of
14% driven by volume, price adjustments and new
products

Good development for new e-commerce platform
launched in Q3 2010
Blocket/Bytbil
MSEK

200
100 %
150
80 %
60 %
100
56%
40 %
50
20 %
0
0%
Q1 10
Q1 11
Revenues
EBITDA margin
Source for traffic data: KIA Index
Q1 2011
23
Online classifieds
Strong growth and margin
development in
Spain and France



EBITDA margin 39% vs 37%**
29% growth in revenues compared to Q1 2010 on
a comparable base
Spain: Continued good trend
 Growth both for Anuntis (car, real estate and
generalist) and for InfoJobs (recruitment)
 Increased marketing spend in Anuntis

SCM International*
EBITDA EUR 14.5 million in Q1 (EUR 10.0 mill)
MEUR

40
80 %
30
60 %
20
40 %
39%
10
0
20 %
0%
Q1 10
Q1 11
Revenues
EBITDA margin
Leboncoin.fr: Strong growth and high margins
*) SCM International operations include Spain, Latin-America and
France. Chart illustrates development for the current portfolio, i.e.
including 100% of Leboncon.fr and excluding Car&Boat Media.
**) 2010 margin of 37% refers to the continued operations:
Spain/LatAm, and 100% of Leboncoin.fr, but not Car&Boat Media.
Note: Source for traffic figures is Google AdPlanner
Q1 2011
24
Leboncoin.fr a top three
online site in France
 Continued strong growth and
high margins in Q1 2011
 Revenues increased 81% Y/Y
 6 billion page views in March
2011, a growth of 59%
 The second largest online
site in France by page views
(Google not measured)
Top 10 Sites, France
Page Views, March
facebook.com
40 000 000 000
leboncoin.fr
6 000 000 000
orange.fr
5 900 000 000
youtube.com
live.com
yahoo.com
3 600 000 000
2 000 000 000
1 400 000 000
free.fr
880 000 000
msn.com
720 000 000
pagesjaunes.fr
310 000 000
commentcamarche.net
160 000 000
Note: Source for traffic figures is Google AdPlanner
Q1 2011
25
Online classifieds
Established European footprint
combined with growth opportunities
Highly profitable #1 positions
All verticals
Norway
Cars +
general
Sweden
Cars +
general
France
Jobs
General
Spain
Real estate
Cars
Operations in Established phase
Operations in Investment phase
Q1 2011
26
Agenda




Q1 highlights
Media Houses in Q1
Online classifieds in Q1
Income statement and
Financials
 Schibsted Classified
Media
 Outlook
Income statement Schibsted Group
– headlines for Q1 2011
 Revenues NOK 3.5 billion (3.3 billion)
 Total revenue underlying +7% Y/Y
 Advertising revenue Online classifieds and Media Houses +14%
 Operating profit (EBITDA) NOK 447 million (NOK 418 million)
 Includes NOK 32 million in increased investment in
Online classifieds roll outs
 Net financials NOK -29 million (NOK -27 million)
 Net income NOK 194 million (NOK 171 million)
Q1 2011
28
Income statement Schibsted Group
(NOK million)
Q1 2011
Q1 2010
2010
3,496
3,258
13,768
12,745
(3,055)
(2,845)
(11,605)
(11,184)
6
447
5
418
36
2,199
(67)
1,494
(137)
(152)
(588)
(662)
310
266
1,611
832
(4)
(18)
(110)
(161)
12
30
1,909
(236)
Operating profit (loss)
318
278
3,410
435
Net financial items
(29)
(27)
(11)
(156)
Profit (loss) before taxes
Taxes
289
251
3,399
279
(95)
(80)
(468)
(94)
Net income (loss)
194
171
2,931
185
EPS (NOK)
1.53
1.45
27.04
4.74
EPS - adjusted (NOK)
1.41
1.41
9.72
4.42
Operating revenues
Operating expenses
Income from associated companies
Gross operating profit (EBITDA )
Depreciation and amortization
Gross operating profit after depreciation and
amortisation (previously EBITA)
Impairment loss
Other revenues and expenses
2009
Reduced due to
divestments
Linked to Sandrew
Metronome scale
down and
divestments
Q1 2011
29
Continued cyclical recovery,
but not yet back to peak levels
Print advertising – Schibsted’s Scandinavian newspapers
1 200
Million NOK
1 000
800
600
400
200
2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011
Q1
Q2
Q3
Q4
Print advertising revenues for Aftenposten, Bergens Tidende, Stavanger Aftenblad, Fædrelandsvennen, Svenska Dagbladet, and Aftonbladet.
Q1 2011
30
Key financial figures
Earnings per share
20
Cash flow from operations per share
NOK
NOK
12
16,72
16
10
8,99
8,04
12
8
6,87
8
6
4,24
3,57
4
1,46
0,62
1,99
1,45
1,53
0
4,45
4,20
4,12
3,2
4
2,43
2,40
2
-0,71
-4
0
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q109
Q209
Q309
Q409
Q110
Q210
Q310
CAPEX
Net interest bearing debt
CAPEX (million NOK) and CAPEX/Sales (%)
Net interest bearing debt (NOK) and
Ratio of Net interest bearing debt/LTM EBITDA
Q410
Q111
Note:
NIBD/EBITDA
according to
bank definition.
6000
250
5000
200
4852
4149
176
4000
150
3102
128
118
109
88
100
4
4
50
71
65
2
2
2
84
2554
96
2000
5
2
3000
3
3
3,9
2389
3,7
2,4
1000
1,7
1,4
Q409
Q110
1820
1990
0,6
0,8
0,9
Q310
Q410
Q111
1501
1337
0,7
Q210
0
0
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
Q109
Q209
Q309
Q1 2011
31
Strong balance sheet,
free float increased
 NIBD/EBITDA 0.9 at end of Q1
Debt maturity profile
3 500
 Total liquidity reserve of NOK 3.9
3 000
billion
in Q2 2011:
 NOK 345 million in cash payment
 Number of treasury shares will be
reduced with approx 4 million. Free
float increased from 70% to 74%
Mill. NOK
 Effect of Media Norge transaction
2 500
2 000
1 500
1 000
500
< 1 yr < 2
yrs
<3
yrs
<4
yrs
<5
yrs
>5
yrs
Other interest-bearing debt
Bonds and CP's
Drawn bankfacilities
Undrawn bankfacilities
Q1 2011
32
Increased dividend proposed
3,99
4,00
3,39
3,50
3,00
3,00
2,59
2,39
2,50
1,59 1,59 1,59
1,50
1,50
1,39 1,39
1,00
0,50
0,00
2010*
2009
2008
2007
2002
2001
2000
0,00
1999
million based on total
number of shares
issued
2,00
1998
 Equals NOK 324
2006
last year
4,50
2005
 100% increase since
4,78
NOK per share
2004
NOK 3.00 per share
5,00
2003
 Dividend proposed at
*) Proposed by the Board of Directors
Dividend pr. share adjusted for effect of rights issue in 2009
Q1 2011
33
Tight cost control in Media Houses,
increased marketing within online
Main increase in
SCM and Finn.no
3100
3000
2900
142
Head count increase in
Online operations.
Reductions in print
47
3055
61
(34)
(6)
2845
2800
Higher paper
prices, but lower
volume
Operating cost Q1 11
Marketing & other
expenses
Personnell
Raw materials
Divestments
Currency
Operating cost Q1 10
2700
Q1 2011
34
Continued efforts to streamline
operations and reduce cost
 NOK 1.7 billion profitability programme was
delivered by Q4 2010
 Efforts to streamline operations and reduce expenses
continues in 2011
 Continuous Improvement projects (Lean) across the Group
 Shared service centres are established in Norway and Sweden
 All Norwegian printing operations gathered in a dedicated
company
 Tight control of headcount development – one of the most
important cost drivers
Q1 2011
35
Main comments related to EBITDA
development as of Q1 2011
 As of Q1 2011 focus in presentations and comments will
be put on EBITDA
 A better measure for underlying performance and cash
flow
 The most common measure for comparing valuation
multiples and performance between companies in the
media industry
 EBITDA for operating units are available for historical
reference
 Overview of future development for acquisition related
amortizations is available at schibsted.com/ir
Q1 2011
36
Agenda




Q1 highlights
Media Houses in Q1
Online classifieds in Q1
Income statement and
Financials
 Schibsted Classified
Media
 Outlook
Schibsted Classified Media
- today’s topics
 Why do we believe so strongly in online classifieds?
 How do we look at our portfolio of assets?
 How is it going?
Q1 2011
38
Online classifieds has a great audience
potential…
Top 10 Sites, Norway
Unique Users, March
facebook.com
vg.no
finn.no
live.com
3 500 000
2 800 000
2 600 000
2 400 000
Top 10 Sites, Sweden
Unique Users, March
facebook.com
youtube.com
live.com
aftonbladet.se
6 100 000
5 600 000
5 100 000
4 600 000
Top 10 Sites, France
Unique Users, March
facebook.com
34 000 000
youtube.com
28 000 000
live.com
28 000 000
orange.fr
21 000 000
gulesider.no
2 000 000
blocket.se
4 200 000
leboncoin.fr
20 000 000
nrk.no
2 000 000
msn.com
4 200 000
msn.com
19 000 000
dagbladet.no
1 900 000
hitta.se
free.fr
19 000 000
msn.com
1 900 000
eniro.se
3 800 000
3 500 000
yahoo.com
16 000 000
startsiden.no
1 600 000
swedbank.se
3 200 000
commentcamarche.net
16 000 000
aftenposten.no
1 500 000
blogspot.com
3 100 000
pagesjaunes.fr
16 000 000
Source all figures: Doubleclick Ad Planner, March 2011 Google.com/adplanner – List by audience
Q1 2011
39
…and a superior ability to create page views!
Top 10 Sites, Norway
Page Views, March
facebook.com
3 700 000 000
finn.no
890 000 000
Top 10 Sites, Sweden
Page Views, March
facebook.com
blocket.se
live.com
170 000 000
youtube.com
vg.no
160 000 000
swedbank.se
startsiden.no
120 000 000
live.com
dagbladet.no
110 000 000
aftonbladet.se
nrk.no
81 000 000
msn.com
msn.com
81 000 000
eniro.se
aftenposten.no
gulesider.no
50 000 000
34 000 000
7 200 000 000
1 100 000 000
960 000 000
550 000 000
490 000 000
280 000 000
210 000 000
Top 10 Sites, France
Page Views, March
facebook.com
40 000 000 000
leboncoin.fr
6 000 000 000
orange.fr
5 900 000 000
youtube.com
live.com
yahoo.com
3 600 000 000
2 000 000 000
1 400 000 000
free.fr
880 000 000
67 000 000
msn.com
720 000 000
hitta.se
61 000 000
pagesjaunes.fr
310 000 000
blogspot.com
61 000 000
commentcamarche.net
160 000 000
Source all figures: Doubleclick Ad Planner, March 2011 Google.com/adplanner – List by audience
Q1 2011
40
Very attractive economics in online classifieds –
but you need to become #1!
EBITDA margin
100%
High margins for players that are
much larger than #2
50–70%
30–50%
5–30%
0%
1x
3—5x
Size versus second player
8—10x
Sources: Margin: Company
reports and presentations
Size vs
#2:Pageviews(AdPlanner),
active objects where
applicable, company
presentations. EBITDA 2010
except AutoTrader 2008
Q1 2011
41
The Blocket Concept life stages
StartupPhase
Traction Phase
Established Phase
(Baby)
(Teenager)
(Adult)
All babies start off the same, they
play around, grow fast and cost a
lot of money!
They start having ambitions,
establish their own identity and
want to become self-sustaining
Market leaders aiming for world
class and earning money to support
the family
Our assets - what is their “job”?
Asset phase
Main focus
Assets (not exhaustive)
Established phase
• Create/maintain value
leadership based on
sustained volume leadership
• Blocket
• Infojobs Spain
• Anuntis Spain
• Leboncoin
Investment phase
• Gain clear volume
leadership
• Subito.it
• Willhaben.at
• Mudah.my
• Kapaza.be
• Infojobs.it /com.br
• Grow strongly and establish
a clear path to leadership
• Tori.fi
• Tutti.ch
• CustoJusto.pt
• Jofogas.hu
• Ayosdito.ph
• Berniaga.com
• Dinkos.com.au
Stage 2
(Traction phase)
Investment phase
Stage 1
(Startup phase)
Q1 2011
43
StartupPhase
Traction Phase
Established Phase
(Baby)
(Teenager)
(Adult)
All babies start off the same, they
play around, grow fast and cost a
lot of money!
They start having ambitions,
establish their own identity and
want to become self-sustaining
Market leaders aiming for world
class and earning money to support
the family
Established phased assets:
Doing their job very well!
Sweden
International*
200
40
100 %
100 %
MSEK
150
75 %
100
57%
50 %
MEUR
35
80 %
30
25
60 %
20
40 %
15
39%
50
25 %
10
20 %
5
0
0%
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Revenues
EBITA margin
0
0%
Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11
Revenues
EBITDA margin
*) SCM International operations include Spain, Latin-America and France.
Chart illustrates development for the current portfolio, i.e. including 100% of
Leboncon.fr and excluding Car&Boat Media.
Q1 2011
45
StartupPhase
Traction Phase
Established Phase
(Baby)
(Teenager)
(Adult)
All babies start off the same, they
play around, grow fast and cost a
lot of money!
They start having ambitions,
establish their own identity and
want to become self-sustaining
Market leaders aiming for world
class and earning money to
support the family
willhaben catching up with ebay.at
Page Views / Month, Doubleclick Ad Planner
willhaben
ebay.at
400 000 000
350 000 000
300 000 000
250 000 000
200 000 000
150 000 000
100 000 000
50 000 000
1103
1102
1101
1012
1011
1010
1009
1008
1007
1006
1005
1004
1003
1002
1001
0912
0911
0910
0909
0908
0907
0906
0905
0904
0903
-
Q1 2011
47
Subito catching up with ebay.it
Page Views / Month, Doubleclick Ad Planner
Subito
eBay.it
1 200 000 000
1 000 000 000
800 000 000
600 000 000
400 000 000
200 000 000
1103
1102
1101
1012
1011
1010
1009
1008
1007
1006
1005
1004
1003
1002
1001
0912
0911
0910
0909
0908
0907
0906
0905
0904
0903
0902
0901
-
Q1 2011
48
CustoJusto catching up with OLX.pt
Page Views / Month, Doubleclick Ad Planner
CustoJusto
OLX.pt
100 000 000
90 000 000
80 000 000
70 000 000
60 000 000
50 000 000
40 000 000
30 000 000
20 000 000
10 000 000
1103
1102
1101
1012
1011
1010
1009
1008
1007
1006
1005
1004
1003
1002
1001
0912
0911
0910
0909
0908
0907
0906
0905
0904
0903
-
Q1 2011
49
StartupPhase
Traction Phase
Established Phase
(Baby)
(Teenager)
(Adult)
All babies start off the same, they
play around, grow fast and cost a
lot of money!
They start having ambitions,
establish their own identity and
want to become self-sustaining
Market leaders aiming for world
class and earning money to support
the family
A network of sites and hubs –
sharing best practice, creating value
Worldwide network of experts
We have systematically established competence sharing programs within our group
Also sharing knowledge between companies in different stages of development
Q1 2011
51
Agenda




Q1 highlights
Media Houses in Q1
Online classifieds in Q1
Income statement and
Financials
 Schibsted Classified
Media
 Outlook
Outlook
 Scandinavia: Continued firm advertising markets for Media Houses,
and good growth for online classifieds expected.
 International: Continued strong growth for online classifieds expected
 Continued weak trend expected for single copy sold newspapers. More
stable circulation expected for subscription based newspapers
 Increasing contribution to revenues and profits from Schibsted
Tillväxtmedier online services in Sweden
 Online classifieds operations in Italy, Austria expected to reach break
even in Q4 2011 or Q1 2012
 Targeted investments in new positions for Schibsted Classified Media
will continue. Good development in existing sites, and investment in
2011 will be in the previously communicated range of NOK 300-400
million.
Q1 2011
53
Q1 2011
54
Appendices
Spreadsheet containing detailed Q1 2011 and Historical and analytical
Information can be downloaded from www.schibsted.com/ir
Q1 2011
55
Schibsted ASA basic data
Ticker
Number of shares (31 March 2011)
Treasury shares (31 March 2011)
Number of shares outstanding
Free float*
Share price (31 March 2011)
Market cap (31 March 2011)
Average daily trading volume LTM
Oslo Stock Exchange: SCH
Reuters: SBST.OL
Bloomberg: SCH NO
108,003,615
4,082,837
103,920,778
70 %
NOK 162.30
NOK 19.6 bn., EUR 2.2 bn.,
USD 3.2 bn., GBP 1.9 bn.
306,300 shares
*) Total number of shares excluding treasury shares and shares owned by Blommenholm Industrier AS.
Q1 2011
56
Top 20 shareholders
Rank Name
1 Blommenholm Industrier AS
Holding
Share
28,188,589
26.1 %
2 Folketrygdfondet
8,010,212
7.4 %
3 JPMorgan Chase Bank *
7,038,490
6.5 %
4 Schibsted ASA
3,943,337
3.7 %
5 Bank Of New York Mellon *
3,745,428
3.5 %
6 NWT Media As
2,962,619
2.7 %
7 State Street Bank And Trust Co. *
2,021,259
1.9 %
8 Orkla ASA
1,900,000
1.8 %
9 JPMorgan Chase Bank *
1,285,043
1.2 %
% of foreign shareholders
10 Vital Forsikring ASA
1,277,352
1.2 %
Number of shareholders
11 Clearstream Banking S.A. *
1,268,780
1.2 %
Number of shares
12 Goldman Sachs Int. - Equity - *
1,248,631
1.2 %
Shares ow ned by Schibsted
13 State Street Bank and Trust Co. *
1,107,909
1.0 %
14 Skandinaviska Enskilda Banken *
1,086,385
1.0 %
Largest countries of ownership
15 Citibank N.A. (London Branch) *
44.4 %
4,857
108,003,615
4,230,440
1,047,047
1.0 %
Norw ay
55.6 %
16 State Street Bank and Trust Co. *
900,021
0.8 %
United Kingdom
14.4 %
17 JPMorgan Chase Bank *
868,937
0.8 %
USA
12.3 %
18 SHB Institutional Sales Stockholm
841,000
0.8 %
Luxembourg
4.6 %
19 BNP Paribas Secs Services Paris *
835,515
0.8 %
Sw eden
3.1 %
20 SHB Stockholm Clients Account *
825,809
0.8 %
France
2.7 %
Source: VPS
*) Nominee accounts
Data as of 31 March 2011. Updated information at: www.schibsted.com/en/ir/Share/Shareholders/
Q1 2011
57
Shareholder analysis
Rank Fund Manager
1 Blommenholm Industrier AS
Shares
% at
% at
14/04/11 12/01/11
28,188,589
26.10
26.10
2 Folketrygdfondet
8,010,212
7.42
8.03
3 Fidelity Investments
7,982,193
7.39
5.23
4 Tw eedy Brow ne
5,393,419
4.99
4.99
5 Taube Hodson Stonex Partners
5,190,468
4.81
4.93
6 Schibsted ASA
4,082,837
3.78
3.79
7 Handelsbanken Asset Management
3,220,828
2.98
2.96
8 NWT Media ASA
2,962,619
2.74
2.74
9 BlackRock
1,943,656
1.80
1.52
10 Orkla ASA
1,900,000
1.76
1.76
11 Nordea Fonder (Finland)
1,657,605
1.53
1.70
12 Nordea Asset Management
1,558,317
1.44
1.37
13 Sw edbank Robur
1,405,119
1.30
1.06
14 State Street (C)
1,337,274
1.24
1.11
15 Adelphi Capital
1,283,691
1.19
1.20
16 Vital Forsikring ASA
1,279,297
1.18
1.16
17 People's Bank of China
1,217,611
1.13
1.13
18 TT International Investment Management
1,075,041
1.00
1.17
19 DnB NOR Asset Management
1,074,519
0.99
1.14
20 Amundi Asset Management
1,006,204
0.93
0.45
21 Rational Asset Management
933,000
0.86
0.86
22 National Australia (C)
887,233
0.82
0.82
23 KLP
819,195
0.76
0.78
24 Storebrand Investments
784,763
0.73
0.86
25 Nordea Fonder (Sw eden)
774,451
0.72
0.83
Source: RD: IR and VPS, through the
Nominee ID service. Data as of 12
January 2011.
The shareholder ID data is provided by RD: IR and VPS, through the
Nominee ID service. 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 RD:IR nor VPS can guarantee the accuracy
of the analysis.
Updated information at:
www.schibsted.com/en/ir/Share/Shareholders/
Q1 2011
58
Circulation development - YTD
Per Q1
Circulation Change
Change
2011
2010-2011
Media Norge w eekdays
418 599
(9 091)
(2,1)%
Media Norge Sunday
289 833
(5 388)
(1,8)%
Verdens Gang w eekdays
207 620
(29 546)
(12,5)%
Verdens Gang Sunday
202 133
(7 239)
(3,5)%
Circulation
revenue
Change
2010-2011
}
330 a)
0,9 %
}
268 a)
(6,3)%
320 b)
(14,0)%
127 b)
2,4 %
Aftonbladet w eekdays
Aftonbladet Sunday
Svenska Dagbladet w eekdays
189 800
(9 900)
(5,0)%
Svenska Dagbladet Sunday
194 100
(9 600)
(4,7)%
}
a) Figures in NOK million
b) Figures in SEK million
Q1 2011
59
Advertising – Print editions
Volum e 1)
2011
Per Q1
Media Norge
Verdens Gang
Aftonbladet
2)
Svenska Dagbladet
2)
Change
2010-2011
Revenues
(NOK m illion)
Change
2010-2011
32 184
11,3 %
524
10,8 %
2 674
(5,8) %
87
(13,9) %
3 857
(14,3) %
91
2,2 %
5 824
(4,0) %
128
3,2 %
1) Column meters
2) SEK million
Q1 2011
60
Advertising revenues Media Norge
Offline advertising revenues
Aftenposten
Bergens Tidende
Stavanger Aftenblad
Fædrelandsvennen
Q1
648
350
133
116
50
2008
Q2
Q3
696
519
380
251
152
105
111
110
52
54
Q4
574
293
124
106
52
Q1
481
250
103
85
43
2009
Q2
Q3
489
393
248
198
105
88
86
68
49
39
Q4
503
256
112
89
46
Q1
471
237
106
85
44
2010
Q2
Q3
543
428
279
216
116
94
97
78
51
40
Q4
550
277
123
100
50
2011
Q1
524
271
115
91
47
Real estate
Aftenposten
Bergens Tidende
Stavanger Aftenblad
Fædrelandsvennen
109
76
17
9
7
134
92
19
13
9
83
54
13
8
9
69
46
10
8
5
70
47
9
8
5
89
59
11
10
9
66
43
9
6
7
69
46
10
7
6
67
46
8
7
6
94
66
10
10
8
71
48
8
8
7
63
40
9
8
6
71
49
8
7
7
Recruitment
Aftenposten
Bergens Tidende
Stavanger Aftenblad
Fædrelandsvennen
178
100
29
38
11
173
97
30
36
11
108
62
17
23
7
111
63
17
24
7
104
60
16
21
6
85
48
15
18
5
70
38
12
15
4
86
48
15
18
5
105
57
19
23
6
103
56
18
22
7
79
45
14
15
5
101
54
20
21
6
115
63
22
23
7
37
18
10
6
3
44
25
9
7
3
35
17
9
6
3
33
14
9
7
3
33
18
8
4
3
36
21
8
5
3
34
18
8
5
3
44
24
10
6
4
44
22
13
6
3
46
24
11
7
4
38
20
10
5
3
46
20
13
9
4
51
22
13
11
5
Online advertising
Aftenposten
Bergens Tidende
Stavanger Aftenblad
Fædrelandsvennen
Q1 2011
61
Advertising revenue
split Aftenposten print newspaper
Aftenposten AS
Figures in NOK million
Q1 07
Q2 07
Q3 07
Q4 07
Q108
Q208
Q308
Q408
Q109
Q209
Q309
Q409
Q110
Q210
Q310
Q410
Q111
228
113
80
35
233
106
103
24
193
79
87
27
193
93
71
30
208
100
76
32
215
97
92
26
141
62
54
26
135
63
46
26
137
60
47
29
128
48
59
22
106
38
43
24
121
48
46
26
129
57
46
26
147
56
66
24
117
45
48
25
123
54
40
29
143
63
49
31
Brand
78
85
61
74
68
81
50
67
44
49
40
48
46
53
37
61
57
Retail
74
75
65
96
72
84
59
95
68
73
52
86
61
75
61
91
69
0
2
1
0
1
1
0
-5
1
-2
-1
-1
15 %
21 %
10 %
9%
19 %
16 %
26 %
5%
22 %
12 %
39 %
8%
10 %
2%
20 %
15 %
-9 %
-12 %
-5 %
-9 %
-8 %
-9 %
-11 %
8%
-27 %
-22 %
-38 %
-4 %
-30 %
-32 %
-35 %
-11 %
-34 %
-40 %
-38 %
-8 %
-40 %
-51 %
-36 %
-17 %
-25 %
-38 %
-19 %
-6 %
-11 %
-24 %
1%
-2 %
-6 %
-5 %
-3 %
-11 %
15 %
18 %
12 %
13 %
10 %
17 %
10 %
0%
2%
12 %
-14 %
12 %
11 %
11 %
7%
19 %
Brand
7%
13 %
17 %
-3 %
-12 %
-5 %
-17 %
-9 %
-36 %
-40 %
-21 %
-29 %
4%
9%
-9 %
27 %
25 %
Retail
9%
4%
10 %
10 %
-2 %
12 %
-9 %
-1 %
-6 %
-13 %
-11 %
-9 %
-10 %
2%
16 %
5%
13 %
Total classified
Recruitment
Real estate
Other classified
Unspes. market
Y/Y change:
Total classified
Recruitment
Real estate
Other classified
Q1 2011
62
Key financial figures
Per Q1
2011
Operating profit (EBITDA) (NOK million)
Per Q4
2010
2010
2009
447
418
2 199
1 494
12.8
12.8
16.0
11.7
Operating margin before ass. companies
8.7
8.0
11.4
7.0
Operating margin (EBITA)
8.9
8.2
11.7
6.5
EPS (NOK)
1.53
1.45
27.04
4.74
Cash flow from operations (NOK million)
250
251
2 039
1 610
Cash flow from operations per share (NOK)
2.40
2.43
19.73
19.34
Net income attr. to major interests
159
149
2 794
395
Average number of shares (1 000)
104,000
103,303
103,338
83,256
Operating margins (%):
Operating margin (EBITDA)
Q1 2011
63
Capital structure
Per Q1
2011
Per Q4
2010
2010
2009
Investments (NOK million):
Operational investments (capex)
118
71
427
390
20
3
1 880
196
Interest bearing debt (NOK million)
2 657
3 018
2 478
3 809
Net interest bearing debt (NOK million)
1 990
2 389
1 820
2 554
Interest bearing debt ratio (%)
15.9
21.2
15.0
25.0
1)
42.8
37.4
42.4
34.7
Shares and other holdings
Equity ratio(%)
1)
Treasury shares are offset against equity
Q1 2011
64
Market leading newspapers in
Norway and Sweden
Schibsted owns six of top ten
newspapers in Norway
Daily readership (‘000)
Penetration¹
884
663
431
315
266
Other M:NO*
502
Schibsted owns two of top seven paid
newspapers in Sweden
Daily readership (‘000)
Penetration²
22%
1 078
17%
962
11%
8%
7%
821
13%
11%
8%
544
7%
492
13%
*) Sum of Bergens Tidende (232), Stavanger Aftenblad (169), Fædrelandsvennen (101)
Source: TNS Gallup 2011 Forbruker & Media 11/01
¹ Norwegian population of 3,963,000 aged 12 or older
15%
Schibsted’s titles
Source: Orvesto 2010:3 – weekdays
Individual figures for Expressen, GT and Kvällsposten are not published. Schibsted
estimate of Expressens readership is around 600,000.
² Swedish population of 7,150,000 aged 15 to 79
Q1 2011
65
Market leading positions
online in Norway and Sweden
Sweden
Site
1 Aftonbladet
2
3
4
5
MSN.se
Hotmail
blocket.se
hitta.se
Million
Unique
visitors
5.5
5.5
4.9
4.7
4.0
6 Eniro.se
7 Expressen
8 Aftonbladet WebbTV
2.7
2.5
1.9
9
10
11
12
DN.se
hemnet.se
svt.se
svd.se
1.6
1.4
1.3
1.2
13
14
15
16
17
18
Tradera
svtplay.se
Bloglovin
di.se
mobil.aftonbladet.se
tv.nu
1.1
1.0
1.0
1.0
1.0
1.0
19 SR.se
20 e24.se
0.9
0.8
21 Dayviews.com
22 prisjakt.nu
23 Klart.se
0.8
0.7
0.7
24 SL
25 familjeliv.se
0.6
0.6
Schibsted share of top 25
= Schibsted sites
44 %
Norway
Million
Unique
visitors
3.7
2.7
1
2
Site
VG Nett
Finn.no
3
4
5
6
7
8
9
NRK.no
Dagbladet.no
MSN
Startsiden
Gule Sider
SOL
Aftenposten.no
2.5
2.3
2.3
2.2
1.4
1.4
1.2
10
11
12
13
14
15
16
17
18
Nettavisen
TV2
Blogg.no
Kvasir
ABCnyheter
Klikk.no
Kjendis.no
Opplysningen 1881
E24.no
1.2
1.2
1.1
0.9
0.9
0.8
0.8
0.6
0.6
19
20
21
22
DinSide.no
NAV
Seher.no
Bergens Tidende
0.5
0.5
0.4
0.4
23 Dn.no
24 Adressa.no
25 Online
Schibsted share of top 25
Source: TNS Gallup, Kiaindex
Note: Week 18 of 2011
0.4
0.4
0.4
28 %
Q1 2011
66
Daily reach for Media Houses in
Sweden – print and online
Aftonbladet
2 522
Expressen, GT, Kvällsposten
1 607
DN
1 116
GP
588
Sydsvenskan
361
0
500
1000
1500
2000
2500
3000
Number of daily readers for media house online and print platforms
Source: SIFO approved calculation of Orvesto internet, Ovesto day and Orvesto consumer.
Svenska Dagbladet is not included in the survey.
Q1 2011
67
Number 1 positions in Spain,
France and Italy
Market
Site
Market position
No. 1 recruitment
No. 1 generalist classifieds
Spain
No. 1 cars
No. 1/2 real estate
No. 3 news site
No. 3 recruitment
No. 1 general merchandise
France
No. 5 news site
Source:
Italy
No. 1 in recruitment
No. 1 general merchandise
Google AdPlanner,
Unique Visitors
(France/Italy,
cookies)
Q1 2011
68
Historical development
1839 Chr. Schibsted Forlag (publishing house)
founded
1860 Christiania Adresseblad launched in Oslo –
renamed Aftenposten in 1861
2005 Acquisition of Hitta.se
2005 Launch of Sesam and acquisition of
Internettkatalogen
1966 Takeover of VG
2006 Schibsted International Classifieds & Search –
launch of Willhaben.at and LeBoncoin.fr
1989 Reorganisation from a private family
company to a limited company
2006 Acquisition of selected assets of Trader Classified
Media (International Classifieds Acquired)
1992 Listing at the Oslo Stock Exchange with a
growth strategy declaration
2006 Divestment of ownership in TV 2
1992 First TV and film investments
2006 Divestment of ownership TV4
1995 First New Media/Internet investments
2007 Media Norge approved by Schibsted’s general
meeting
1995 First investments in Kanal 2 in Estonia
2009 Rolv Erik Ryssdal new CEO
1996 Acquisition of Aftonbladet
2009 Media Norge established
1998 Acquisition of Svenska Dagbladet
2009 Increased ownership in Finn.no and InfoJobs.net
1998 Investment in Eesti Meedia Group
2009 Non core activities Metronome, Retriever,
Basefarm, Teleadress divested
1999 Launch of the free newspaper concept 20
Minutes
2000 Launch of Finn
2003 Acquisition of Blocket
2010 Increased ownership in Leboncoin.fr from 50% to
100%
See also: http://www.schibsted.com/en/About-Schibsted/History/
Q1 2011
69
Investor information
 Visit Schibsted’s homepages
 www.schibsted.com/ir
 Jo Christian Steigedal, VP Investor Relations
jcs@schibsted.no
Tel: +47 2310 6600
Schibsted ASA
Apotekergaten 10, P.O. Box 490 Sentrum, NO-0105 Oslo
Tel: +47 23 10 66 00. Fax: +47 23 10 66 01. E-mail:
schibsted@schibsted.no
www.schibsted.com
Q1 2011
70
Q1 2011
71