leboncoin.fr acquisition tittel - schibsted.com documents/cmd/cmd 20… · autoscout24.de...

TittelUndertittel

ROLV ERIK RYSSDAL

CEO

LeBoncoin.fr acquisition

and Strategic Direction for Schibsted

Schibsted takes full control over

Leboncoin.fr - top 3 in online classifieds in Europe

• Schibsted increases ownership in Leboncoin.fr to

100% by acquiring 50% of the shares from

SPIR communication

• Full strategic and operational control over the third largest online

classifieds/auction site in Europe

• Clear market leader in online classifieds in France

• Top 10 online site in France – regardless of category

• The transaction strengthens Schibsted’s growth profile and creates fresh

opportunities to develop new online business in France

• Growth rate in first half 2010 122% Y/Y. Revenues EUR 16 million

• EBITDA margin 1st half 2010 59%

• Values Leboncoin.fr at EUR 400 million on 100% basis – equals EBITDA multiple

of 18, based on expected 2010 figures2 CMD 2010 - Rolv Erik Ryssdal - Strategic Direction

(5)

-

5

10

15

20

2008 2009 1H 2009 1H 2010

Mil

lio

n E

UR

Revenue EBITDA

Strong revenue growth and high margins 4

years after launch

CMD 2010 - Rolv Erik Ryssdal - Strategic Direction3

+122%

Doubled revenues

expected for 2010

Leboncoin.fr is a result of Schibsted’s roll out

strategy for Online classifieds

• The Swedish Blocket-concept is

launched in 14 countries outside

Sweden

• Leboncoin.fr launched April 2006, and

became profitable in 2008

• Further launches will come

• Aim to utilize the Group’s joint strengths

and capabilities in new and existing

markets


Leboncoin.fr is only trailing eBay in the

European market. Clear market leader in France in Aucton/Classified

5

Source: AdPlanner data from July 2010,

Google is not included

- 10 000 000 20 000 000

yasni.de

rightmove.co.uk

autoscout24.de

gumtree.com

subito.it

allocine.f r

ebay.com

mobile.de

immobilienscout24.de

ebay.com

ebay.it

ebay.f r

leboncoin.f r

ebay.co.uk

ebay.de

Top European Classified/Auction sites UMV

- 4 000 000 000 8 000 000 000

yasni.de

rightmove.co.uk

autoscout24.de

gumtree.com

subito.it

allocine.f r

ebay.com

mobile.de

immobilienscout24.de

ebay.com

ebay.it

ebay.f r

leboncoin.f r

ebay.co.uk

ebay.de

Top European Classified/Auction sites PV

CMD 2010 - Rolv Erik Ryssdal - Strategic Direction

Leboncoin.fr is a top 10 site in France

6Source: AdPlanner data from July 2010

Google is not included

- 10 000 000 20 000 000

ebay.fr

pagesjaunes.fr

commentcamarche.net

leboncoin.fr

free.fr

yahoo.com

orange.fr

msn.com

youtube.com

live.com

facebook.com

Top French sites UMV

- 20 000 000 000 40 000 000 000

ebay.fr

pagesjaunes.fr

commentcamarche.net

leboncoin.fr

free.fr

yahoo.com

orange.fr

msn.com

youtube.com

live.com

facebook.com

Top French sites PV

• Top 10 ranking creates opportunity for further growth in display/brand advertising

• Top 3 in page views creates fundament for driving growth for other Schibsted sites in France


Leboncoin.fr is a strong leader in generalistsVisits Page Views

Google AdPlanner

eBay.fr Leboncoin.fr

Kijiji.fr Vivastreet.fr

annonces.eBay.fr

eBay.fr Leboncoin.fr

Kijiji.fr Vivastreet.fr

annonces.eBay.fr

7 CMD 2010 - Rolv Erik Ryssdal - Strategic Direction

France is Schibsted’s largest marketOnline sellers

2009

Online

advertizing 2008

Online

Classifieds 20101)

France

Italy

Spain

Sweden

5.4

1.3

1.4

1.1

Million € Billion € Million

1.8

0.7

0.6

0.4

350- 400

120- 150

120- 150

80- 100

1) Revenues from generalist, cars, real estate and job sites

Source: Eurostat, IAB, Schibsted estimates

GDP 2009

2.6

2.0

1.4

0.4

€ Trillion

Internet

population 2009

30

21

21

6

Million

French online classifieds expected to grow at double-digit rates,

driven by shift to online and increasing internet usage


Leboncoin has potential to monetize the market

position to a larger extent

9

Revenue per entering visit

€, June 2010

Finn

Blocket

Leboncoin

Private

Pro

Advertizing

Total

0.30

0.126

0.028

Source: Schibsted

Revenue per 1000 PV

€, June 2010

11

5.49

0.82


Deal structure and pricing

• Leboncoin.fr valued at EUR 400 million on 100% basis

• Schibsted acquires 50% of the shares from SPIR Communication

• EBITDA multiple based on expected earnings in 2010 of 18

• Revenue 1st half 2010 EUR 16 million, 122% higher than in 1st half 2009

• EBITDA margin 1st half 2010 59%

• SPIR Communication takes over Schibsted’s 50% of Car & Boat Media,

valued at EUR 120 million on 100% basis

• Car & Boat Media is the leading automotive online site in France

• 2009 revenue of EUR 38 million and EBITDA-margin of 29%. Growth rate in 1st half

2010 was 20%

• EBITDA multiple based on expected earnings in 2010 of 9

• Net cash investment for Schibsted EUR 140 million


Continued scope for structural growth in France


INTERNET USERS ECOMMMERCE MARKET

4

11%

15%20%

24%28%

31% 31% 32% 32%

-

10%

20%

30%

40%

50%

2004 2005 2006 2007 2008 2009 2010e 2011e 2012e

Broadband penetration rate

Source: Paul Budde June 2010

55%

48%

36%

24%20%

11%8%

-

10%

20%

30%

40%

50%

60%

2006 2007 2008 2009 2010e 2011e 2012e

3G penetration rate

Source: Paul Budde June 2010

BROADBAND PENETRATION

69

1216

21

27

32

-

10

20

30

40

2004 2005 2006 2007 2008 2009 2010e

-

10%

20%

30%

40%

50%

60%

French eCommerce revenue (left scale)Grow th (right scale)

€bn

Source: Citi Global markets

3G PENETRATION

Source: Mediametrie/NetRatings

32.4 34.0 34.1 34.8 35.5 36.7 37.339.8

-

10

20

30

40

Q3

2008

Q4

2008

Q1

2009

Q2

2009

Q3

2009

Q4

2009

Q1

2010

Q2

2010

-

2%

4%

6%

8%

French internet users (left scale scale) Grow th (right scale)

millions

France Internet advertising spend


PAID SEARCH SPEND

INTERNET ADVERTISING SPEND

INTERNET DISPLAY SPEND

€m

€m

Source: Enders Aug 2010 Source: Enders Aug 2010

Source: Xerfi, Enders Aug 2010

INTERNET CLASSIFIED SPEND

911

1,257

1,533

1,819 1,867

6.4%

5.6%

3.8%

2.8%

4.7%

-

500

1,000

1,500

2,000

2005 2006 2007 2008 2009

-

2.0%

4.0%

6.0%

8.0%

French Internet advertising spend (left scale)

% total advertising spend (off line and online) (right scale)

237

343

430482 493

26.0%

26.4%26.5%28.0%27.3%

-

200

400

600

800

2005 2006 2007 2008 2009

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

French Internet display spend (left scale)

% French internet advertising spend (right scale)

€m

Source: Enders Aug 2010

217

364410

525572

23.8%

29.0% 26.7% 28.9%30.6%

-

200

400

600

800

2005 2006 2007 2008 2009

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

French paid search spend (left scale)

% French internet advertising spend (right scale)

€m

439

776 765

526

663

48.2%

41.0%42.7%43.2%41.8%

-

200

400

600

800

2005 2006 2007 2008 2009

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

French Internet classif ied spend (left scale)% French internet advertising spend (right scale)

Since last CMD – in September 2008

• Severe market decline starting in

September 2008

• Rapid and forceful response from Schibsted

• Profitability programme of NOK 1.7 billion

• Rights issue of NOK 1.3 billion securing balance

sheet and flexibility

• Non core assets disposed – freeing up NOK 2

billion and tidying up the group structure

• Continued expansion of Online classifieds

• Revenue growth 1H 2010 17%

• Operations in 28 countries


Schibsted strategy refined


Online classifieds

Finn.no(owned by

Media Norge)

Schibsted Classified

Media

Hitta (ownedby Schibsted

Sweden)

Media housesScandinavia

Media Norge

VG

Schibsted Sweden

2009 operations

15

Revenue: MNOK 2,627

EBITA: MNOK 591

MNOK 8,657

MNOK 477

Rest of the group:

Media Houses International,

Other and HQ

Revenue: MNOK 1,461

EBITA: MNOK (236)


Strong margins, market leading positions

16

Revenue

2009

EBITA

2009

Online

share of

revenues

Operations

MNOK

1,961

MNOK 323 16 % No. 1 online and print

tabloid newspaper

MNOK

4,437

MNOK 84 4 % No. 1 regional morning

newspapers in 4 major

cities

MNOK

3,285

MSEK 153 20 % No. 1 online and print

tabloid newspaper

No. 2 morning newspaper

Strong positions in various

online news/services

Schibsted

Sverige

Currency: SEK/NOK 0,8223

Media Houses Scandinavia


Solid fundament for operational improvements

and online migration


Media Houses International

18

The Media House

of tomorrow



The Media House of tomorrow

19

Distribution

and logistics

Print

Editorial

Sales

Finance

IT

Purchasing

Ad production

Customer

service/CRM

Distribution

and logistics

Print

Core

Industry

19


Support

Past Future

Circulation

Advertising

Editorial


Systematic approach to optimize sales


Strategy and Customer

Management

Process and Productivity

Sales Talent Management

Metrics and Rewards

Launch – test – adapt – refine!


Some innovations


Getting paid online is a key task


24

The value of trafficMedia Houses Scandinavia

• New businesses fuelled by

the strong traffic machines

Schibsted controls in

Sweden

• A similar operation is about

to be launched in Norway


25

The value of trafficMedia Houses Scandinavia

-40

-20

0

20

40

60

80

100

120

Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Millio

n S

EK

Revenue EBITA

Schibsted Tillväxtmedier, online services in Sweden

• New businesses fuelled by

the strong traffic machines

Schibsted controls in

Sweden

• A similar operation is about

to be launched in Norway

Schibsted Tillväxtmedier ex. Hitta.se


26

European leader in online classifieds

Source: Nielsen Netratings

Highly profitable

#1 positions

Norway

Sweden

France

Spain

Operations in Established phase

Operations in Venture phase

All verticals

Cars +

general

Cars +

general

Jobs

General

Real estate

Cars


27

Online classifiedsOverview

Revenue

2009

Underlying

revenue

growth

2009**

EBITA

2009

EBITA*

margin

2009 Operations

MNOK 738 7% MNOK

298

40% Clear market leader in

recruitment, cars, real estate

and generalist in Norway

MNOK 1,389 2% (14% ex Spain

recruitment)

MNOK

581*

42% Clear market leader in several

verticals in Sweden, Spain,

and France

MNOK 116 174% MNOK

(97*)

N/A Growth operations in 15

markets

MNOK 252 30% MNOK 42 17% No. 2 in online directories in

Sweden.

Market leader in terms of

traffic

Established operations

*) EBITDA figures for Schibsted Classified Media. EBITA for Schibsted Classfied Media (group) in

2009 was MEUR 32..

**) Revenue growth is adjusted for currency fluctuations and discontinued operations. Currency

exchange rates 2009: EUR/NOK 8,73, SEK/NOK 0,8223

New ventures


28

Overview Q2 2010

Established operations

*) EBITDA figures for Schibsted Classified Media. EBITA for Schibsted Classfied Media (group) in

Q2 2010 was MEUR 11.7.

**) Revenue growth is adjusted for currency fluctuations and discontinued operations. Currency

exchange rates Q2 2010: EUR/NOK 7,91, SEK/NOK 0,8212

New ventures

Revenue

Q2 2010

Underlying

revenue

growth

Q2 2010**

EBITA*

Q2 2010

EBITA*

margin

Q2 2010 Operations

MNOK 258 32% MNOK 121 47% Clear market leader in

recruitment, cars, real estate

and generalist in Norway

MNOK 398 18% MNOK 193 48% Clear market leader in

several verticals in Sweden,

Spain, and France

MNOK 31 63% MNOK (45)* N/A Growth operations in double

digit number of markets

MNOK 68 14% MNOK 17 25% No. 2 in online directories in

Sweden.

Market leader in terms of

traffic

Online Classifieds


Blocket roll outs to continue

29

Six new countries

during the last 12

months


30

The most attractive media company

– through people who, dare,

challenge and create

Strategy and goal setting

Performance management

Recruiting, competence and resources

Feedback and motivation

Summary

• Strong positions in two strategic pillars

1. Strong positions for our Media Houses

- Continued profitability focus

- Focus on innovation and development of new revenue streams

- Broadened footprint particularly online

2. Online classifieds

- High margin business

- Fast growing industry

- Schibsted has unique market leading positions and opportunities and capabilities to

continue the strong growth

• Financial targets, released today, supports strategy

– highlights Schibsted’s ambitions for the next 3-5 years


Shaping the media of tomorrow.

Today.

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