Schibsted ASA (SCHA/SCHB): Capital Markets Day 2019 - Two separate growth companies presented

Today, Schibsted and Adevinta host a joint Capital Markets Day in London. Adevinta is the name of Schibsted's international marketplaces operations, which will be spun off and listed separately.

The event starts at 09:00 UK time (10:00 CET). The presentation material and more information about the event is available on www.schibsted.com/ir. The presentation can be followed on a live webcast on the same URL, and a recording will be made available shortly after the end of the event, which is at 16:30 UK time, 17:30 CET.

At the event, CEO Kristin Skogen Lund presents the strategy for Schibsted after the demerger of Adevinta, with clear ambitions to be a Nordic digital front-runner, continuing to create shareholder value through long term growth in the company's three business areas Nordic Marketplaces, News Media and Next. The three areas will optimize their individual brands and business models, but at the same time they will increasingly reinforce each other by exchanging traffic, data, technology and competence.

Based on the new structure, Schibsted has set out the target to grow its revenue in the Nordic Marketplaces business area by 8-12 percent yearly in the medium to long term. The business area comprises leading online classifieds sites in Norway (Finn.no), Sweden (Blocket.se) and Finland (Tori.fi). For its News Media business area, Schibsted has the ambition to keep EBITDA margin stable, on the back of continued digital revenue growth curbed by decline in print related revenue. The company experiences strong growth in the fast developing financial services market, particularly driven by Lendo.

With regards to capital allocation, Schibsted will focus on targeted M&A activities aiming to strengthen market positions and bolt on adjacent businesses. Dividend will be stable to increasing over time, and the company will target a level of net interest bearing debt in the range of 1-3 times EBITDA, making it possible to lever up if a particularly attractive investment becomes available. Any over-capitalisation to be addressed through (extraordinary) dividend or share buyback.

CEO of Adevinta, Rolv Erik Ryssdal, presents Adevintas overall strategy and market position as a leading pure-play international marketplace operator. Adevinta operates in 16 markets, covering a population footprint of 800 million, generating 1.5 billion monthly visits. With an attractive business model, based on strong network effects and footprint in highly attractive geographies, Adevinta is in the position to exploit a significant global market opportunity.

Adevinta's medium- to long-term annual revenue growth target is 15-20 percent including contribution from joint ventures and associates based on Adevinta's respective ownership stakes. Adevinta expects low to mid-teens revenue growth in the first half of 2019 (including contribution from joint ventures and associates based on Adevinta's respective ownership stakes), with continued display advertising softness while verticals continue to be strong.  The company is working both strategically and with short term initiatives to address this display advertising softness.

Operational leverage is expected to support targeted EBITDA (before other income and expenses, impairment, JVs and Associates) towards above 40% in the longer term including contribution from joint ventures and associates based on Adevinta's respective ownership stakes, in line with other leading online classified companies

Adevinta is well on track for a successful demerger from Schibsted and first day of trading as a separate company on the Oslo Stock Exchange 10 April 2019. Upon completion of the demerger, shares representing 35% of the total number of shares in Adevinta will be issued to Schibsted shareholders as consideration in the demerger. Schibsted will upon completion of the demerger hold the remaining 65% of the shares in Adevinta. Provided that prevailing market conditions so permit, Schibsted intends to sell down 5% Adevinta shares in the market (in the form of Adevinta B shares).

The Tinius Trust intends to divest a limited portion of its direct holding in Adevinta (owned through Blommenholm Industrier AS), in the form of Adevinta B shares.

Schibsted intends to remain a significant long-term owner in MPI, and the size and time horizon of Schibsted's ownership will be tailored to support and develop shareholder value for both companies. Schibsted will seek to exercise its ownership through the shareholder meeting and representation on MPI's Board of Directors, where CEO Kristin Skogen Lund is a member.

As a stand-alone, independent company with direct access to capital markets, the Board of Schibsted believes that Adevinta will be well equipped to expand its business and participate actively in value enhancing industry consolidation and acquisitions.

At the time of the listing, Adevinta will inherit Schibsted's dual share class structure. Schibsted as a majority owner will support a simplified governance structure without ownership or voting limitations and an amalgamation into one share class by 2019 year end subject to EGM approval.

J.P. Morgan Securities plc and Skandinaviska Enskilda Banken AB (publ), Oslo branch and Arctic Securities AS (who is also financial advisor to The Tinius Trust) are assisting Schibsted and Adevinta in connection with the contemplated demerger and separate listing of Adevinta on the Oslo Stock Exchange.

Contact persons:
Trond Berger, CFO. Tel: +47 916 86 695
Jo Christian Steigedal, VP Investor Relations. Tel: +47 415 08 733


The presentations (pdf) can be downloaded here: www.schibsted.com/news/capital-markets-day-2019/

Direct link to the presentation webcast:
http://webtv.hegnar.no/presentation.php?webcastId=97797137
or alternatively www.youtube.com/SchibstedMediaGroup

Oslo, 7 March 2019
SCHIBSTED ASA

Jo Christian Steigedal
Head of IR