Enskilda Securities Nordic Seminar 2005 20. januar 2005 Kjell Aamot CEO Stein Yndestad IR
Jan 15, 2016
Enskilda Securities Nordic Seminar 2005
20. januar 2005
Kjell AamotCEO
Stein Yndestad IR
2Enskilda Securities Nordic Seminar 2005
Q3 Highlights
Schibsted’s best Q3 ever
Strong development for online activities continues
Record-high results in Aftonbladet
Good development in 20 Minutes continues
Growth in the recruitment market – Aftenposten proceeds to
deliver improved results
Solid results for VG even with a somewhat weaker circulation
Weak quarter for TV-production, while Sandrew Metronome
and Publishing have improved Q3 results from last year
3Enskilda Securities Nordic Seminar 2005
History
1836
Established
1992 1999 20031989
Restructuring
Listed on Oslo
Stock Exchange
Grow
th &
expansion
Focus &
consolidation
Consolidation
New growth?
4Enskilda Securities Nordic Seminar 2005
Strategy
Previous announced strategy to be continued – financials
and market position enables increased focus on growth
Growth through both acquisitions and organic growth
• The Group’s strong position and competitive advantages as a basis
• Acquisitions complementing and strengthening already existing positions
• New media and free newspaper engagements
Financial targets unchanged
5Enskilda Securities Nordic Seminar 2005
Financial targets – over a business cycle
EBITA-margin 12%
EBITDA-margin 16%
Return on equity 22%
Return on assets 15%
Long term target for organic profitable growth 7%
Equity ratio 35% (min. 25%)
Net interest bearing debt/EBITDA 3
Minimum net cashflow from operations after maintenance
capex (before dividend)
NOK 400 million
6Enskilda Securities Nordic Seminar 2005
Strong BrandsContentKnow-howMarketing CapacityStrong Cash FlowExecution Skills
New BusinessOpportunities
Newspapers
TV-production
Publishing
Film Rights
Internet (www)
Mobile Internet
Broadband
Build on core activities for continuous development
Off-line Positions
Online Platforms
Stand by strategic position as of 1995
7Enskilda Securities Nordic Seminar 2005
-23,1%
-19,9%
-17,6%
-12,9%-11,3%
-9,6%-8,6%
-7,5%-7,3%-5,5%-5,5%-5,2%
-4,2%-2,9%-2,3%-2,1%
-0,3%
-25 %
-20 %
-15 %
-10 %
-5 %
0 %
5 %
10 %
15 %
Circulation decline puts pressure on the newspapers and emphasizes the need to create new platforms for growth
Development of number of sold copies per capita (1999-2003)
Isla
ndBe
lgiu
mPo
rtug
alAu
stria
Gre
ece
Den
mar
kGer
man
yNor
way
Luxe
mbu
rg UK
Switz
erla
nd
Fran
ce
Italy
Net
herla
nds
Swed
en
2,2%
29,2%US
A
Spai
n
Finl
and
Irela
nd
Source: World Association of Newspapers, Global insight
8Enskilda Securities Nordic Seminar 2005
Charles Darwin
”It is not the strongest of the species that
survive, nor the most intelligent, but the
one most responsive to change.”
9Enskilda Securities Nordic Seminar 2005
Strategic repositioning
2004
Pro
du
ct s
cop
e
Geographic focus area
Newspapers
Elektronic
media
Norway Scandinavia Europe
1995
10Enskilda Securities Nordic Seminar 2005
The great conserns in 2001
Online
11Enskilda Securities Nordic Seminar 2005
Value trigers at the end of 2004
m.fl.
12Enskilda Securities Nordic Seminar 2005
13Enskilda Securities Nordic Seminar 2005
A 20 Minutes edition goes through three phases
Time
Distribution audience Revenues
Phase 1:Optimize circulation
Phase 3Revenue growth
Phase 2Readership growth
14Enskilda Securities Nordic Seminar 2005
0
250
500
750
1 000
1 250
1 500
1 750
2 000 2000 2001 2002 2003 2004
Zurich Bern
Basle
Madrid
BarceloneParis Sevilla Zaragoza
Lille
Lyon
Marseille
Valence
Alicante
Luzern
Toulouse
Bordeaux
Circulation development
Malaga
2005
15Enskilda Securities Nordic Seminar 2005
The development of 10 – 13 year olds, who read a newspaper more than once per week (Switzerland)
10 – 13 yearsGerman-speaking
Switzerland
20 Minuten und die Kids
1997 2001 2002
100%
50%
25%
75%
85%Before
20minutes
After20minutes
Source:Special survey – “Kids & News“
16Enskilda Securities Nordic Seminar 2005
And the concept is proving itself by attracting advertisers targeting the young, problematic readers!
CocaCola on a front page ad!
17Enskilda Securities Nordic Seminar 2005
Online
18Enskilda Securities Nordic Seminar 2005
Operating revenues – rolling 12 months
2%Online activities
2001 2004
100%=8 223
100%=9 256
6%
For the year of 2001 the online activities had an operating loss incl. restructuring
costs of NOK -171 million
Share of online activities increasesNOK million
Operating profit (EBITA)
Q3 2004
100%= 196
100%=182
14%27%
Q4 2003
Q1 2004
Q2 2004
100%=270
100%=165
2%
18% Online activities
Accumulated EBITA as of Q3 2004 of NOK 119 million
19Enskilda Securities Nordic Seminar 2005
-30
0
30
60
90
120
150
180
2000 2001 2002 2003 LTM
Revenue
Operating profit
Financials 2000 – 2004
-42% -10%
36%
NOK million
24%
33%
*
*As of 30 September 2004
20Enskilda Securities Nordic Seminar 2005
Successful launch of the new format
• The positive development within recruitment ads continues
• Operating profit (EBITA) in the newspaper improved by NOK 25 million from Q3
last year (adjusted for royalty)
• Revenue development in ad markets in Q3 compared to the corresponding
period last year:
• Recruitment: + 14.5%
• Real estate: - 19.3%
• High turnover of properties as well as more objects sold directly from the Internet
• Brand/display: - 2%
• Supplements: + 50%
21Enskilda Securities Nordic Seminar 2005
Pricing in the new Aftenposten
New pricing model will be introduced based on
response and effect
• The response of a tabloid full page is close to the
response of a full page in broadsheet. Therefore
priced to 75-85% of full page in broadsheet
• Response increases non-proportional with the
size of the ad – reflected in prices
• Introducing a new measurement method for ad
effects
Brand/display
ads
Classified
ads
Evening
issue
No short term impact
Positive long term
impacts due to new
readers
Competitive
advantage, especially
towards TV
Prises mainly unchanged, discount on larger ads, like for
brand/display ads. Differenciated pricing of recruitement ads
Same model as the morning edition
Focus moved from modular to fraction of pageDeveloped in close cooperation with advertisers
22Enskilda Securities Nordic Seminar 2005
Migration of classified advertising – Real estate
0
1000
2000
3000
4000
5000
6000
7000
8000
2001
2002
2003
2004
Number of ads, 12-month rolling average
23Enskilda Securities Nordic Seminar 2005
Migration of classified advertising – Recruitment
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2001
2002
2003
2004
Number of ads, 12-month rolling average
24Enskilda Securities Nordic Seminar 2005
The steady cash cows
25Enskilda Securities Nordic Seminar 2005
0
500
1000
1500
2000
2500
Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3
1999 2000 2001 2002 2003
Only online versionBothOnly paper version
Readership on- and offline
Q1
2004
.se
Daily readership, thousands
26Enskilda Securities Nordic Seminar 2005
Readership on- and offline
1370 1322 1242 1215 1158 1136 1118
79 136 185 213 258
70130 179 222
279
4614
8 35
96/97 97/98 98/99 99/00 00/01
1,3911,481 1,522
1,403
1,655
Source:Gallup – 96/97 represents Forbruker & Media 02/97
01/02 02/03
1,571
1,392
Only online versionBothOnly paper version
Daily readership, thousands
27Enskilda Securities Nordic Seminar 2005
Alma Media
28Enskilda Securities Nordic Seminar 2005
ILTALEHTI MTV3 KAUPPALEHTI
AAMULEHTI
SATAKUNNANKANSA
LAPIN KANSA
POHJOLANSANOMAT
KAINUUNSANOMAT
SUOMENPAIKALLISSANOMAT
SUBTV
RADIO NOVA(74%)
MTV Interactive
BALANCECONSULTING
BALTIC NEWSSERVICE
CLASSIFIED SERVICES
TV4 (23,4%)
BROAD-CASTING
ALPRESS BIGMEDIA
SERVICESGROUP
ADMINISTRATION
TALENTUM (31,7%)
Alma Media Corporation Alma Media Group
ALMA MEDIAINFORMATION SYS.
NEW VENTURES
ACTA PRINT (36%)
LEHDENTEKIJÄT
STARFUNDS FINLAND (51%)
29Enskilda Securities Nordic Seminar 2005
Strategic fit
Strategic principles for growth
The two companies have similar business, with Alma being stronger in TV, and complementary geographic presence
• Within the core operations• Mainly within areas that will reduce the
dependency on business cycles• Strategic control possible over time• Synergies with existing operations
• Complementary geographic exposure to Schibsted
• Advanced in new media – MTV3.fi is the largest media site in Finland
• Limited exposure to offline classifieds, but a strong online presence within real estate and cars
• Stronger than Schibsted in TV
30Enskilda Securities Nordic Seminar 2005
Schibsteds run for Alma Media
During the summer Schibsted conducted negotiations with the
larges institutional owners in Finland to buy 34% of the votes.
• Not able to agree on the conditions
• The negotiations probably reached Bonnier
A second attempt to buy the institutions holdings during the
fall/winter did not result in a deal
Schibsted decidet it was no longer fruitfull to wait, a bid for Alma
Media was launched on the 21th of December
The offer was 11,40 for series 1 and 10,70 for series 2, a premium of
55% and 35% on the 12-month volume-weighted average trading
price
31Enskilda Securities Nordic Seminar 2005
Broadcasting is the gemstone of Alma Media
Schibsted key interest is the broadcasting division
The board initiated a process to restructure the Broadcasting
division in November.
Some likely buyers were contacted. Schibsted was for some reason
not contacted.
Potential buyers signed the NDA almost immediately after
Schibsteds offer was announced.
Our Tender Offer puts us in a difficult position.
32Enskilda Securities Nordic Seminar 2005
Share price of Alma Media, Series 1
5,00
6,00
7,00
8,00
9,00
10,00
11,00
12,0022
.12.
2003
22.0
1.20
04
22.0
2.20
04
22.0
3.20
04
22.0
4.20
04
22.0
5.20
04
22.0
6.20
04
22.0
7.20
04
22.0
8.20
04
22.0
9.20
04
22.1
0.20
04
22.1
1.20
04
22.1
2.20
04
Sh
are
pri
ce,
€
Series I share closing price 22 December 2003 - 19 January 2005
12-month weighted average price of series I share on 20 December 2004
Offer price
33Enskilda Securities Nordic Seminar 2005
What happens now ?
Schibsted may withdraw the offer
• The MAC will probably be invoced
Schibsted completes the tender offer:
• If acceptance is more than 33,3%, Schibsteed becomes a major owner of Alma
• If accemptance is bellow 33,3%, Schibsted may choose to accept the shares
offered.
Schibsted is comfortable with the holdings in TV4. Could be of
strategic value depending on the outcome of the Broadcasting sale in
Alma Media.
Schibsted may choose to place a bid for Almas TV4 shares separately
34Enskilda Securities Nordic Seminar 2005
Outlook
Positive expectations to Aftenposten in relation to the change to tabloid format
The tabloids are expected to continue to deliver strong results
Further challenges for Svenska Dagbladet
A good Q4 in 20 Minutes expected, increased competition
Positive development for the online activities – expected to represent approx. 20% of the Group’s operating profit (EBITA)
Improved outlook for TV/Film
Parliament’s report regarding new media legislation represents small improvements for Schibsted
35Enskilda Securities Nordic Seminar 2005
Appendices
36Enskilda Securities Nordic Seminar 2005
Ownership structure in Nordic TV
TV 2
Schibsted
A-Pressen
Egmont
Norway
TV Norge
SBS
TV 3
MTG
TV 4
Sweden
Kanal5
SBS
TV 3
MTG
TV 2
The Government
Denmark
TVDanmark 1&2
SBS
TV 3
MTG
Proventus
MTV 3
Alma Media
Finland
Nelonen 4
Sanoma
MTG
Other
SBS
Schibsted
Other
Alma Media
Bonnier
37Enskilda Securities Nordic Seminar 2005
Operating profit (loss) (EBITA) Newspapers
Q3 Q3 1) Figures in NOK million
2) Figures in SEK million
As of Sept 30
2003 2004 2004 2003 2003
(28) (10) Aftenposten 1) 104 46 66
105 109 VG 1) 291 299 355
0 (13) Svenska Dagbladet 2) (25) 9 12
56 87 Aftonbladet 2) 227 158 211
38Enskilda Securities Nordic Seminar 2005
Number of unique users improved by 53% in September
• Record of more than 100,000 active ads simultaneously and 1,365,000
unique users in September
• Operating profit (EBITA) in Q3 of NOK 17 million (NOK 15 million)
• Turnover improved by 29% to NOK 44 million in Q3:
• Recruitment: + 33%
• Real estate: + 18%
• Cars: + 50%
• Continued strong growth and increased traffic within all segments
39Enskilda Securities Nordic Seminar 2005
Solid results and the success on the net continues
• Schibsted’s most profitable company (nominal terms)
• Operating revenues and EBITA-margin in Q3 at same levels as
last year
• Circulation on weekdays reduced by 3.7% as of September
compared to same time last year
• Maintains its strong market share
• Operating margin (EBITA) of 25% (2%) for the online newspaper
in Q3
40Enskilda Securities Nordic Seminar 2005
Low ad revenues continues to weaken the result
• Ad revenues in Q3 reduced from the corresponding period last
year to SEK 65 million (SEK 85 million)
• Positive development in circulation revenues - amounts to SEK 96
million (SEK 92 million)
• The tough competition in Stockholm continues
• No negative effects so far for SvD from the change of Dagens Nyheter
to tabloid format
• SvD.se with a postitive development – record high number of
uniqe visitors in September of 643,000
• ”New SvD”– a further upgrade of the editorial product will be
launched on November 8th
41Enskilda Securities Nordic Seminar 2005
Record-high results in Aftonbladet
• Operating revenues increased by 15% compared to Q3 2003
• Operating margin (EBITA) of 16% (12%) in Q3
• Circulation on weekdays increased by 3,300 copies from last year
• The gap towards Expressen was 94,400 by the end of September
• Continues to take market shares in the advertising market
• Ad revenues increased by 83% to SEK 153 million in Q3 incl. online activities
42Enskilda Securities Nordic Seminar 2005
Aftonbladet strengthenes its online position
• Online activities comprises now of Aftonbladet Nya Medier, Blocket.se
and BytBil (as of July 1st 2004)
• Represents 33% (15%) of Aftonbladet’s total ad revenues in Q3
• Increased gap compared to the amount of visitors of the main competitors
• Development of new products continues, e.g. paid services like “the
Weight Club” and “Plus”
43Enskilda Securities Nordic Seminar 2005
Operating profit (EBITA) TV/Film & Publishing
Q3 Q3 1) Figures in NOK million
2) Figures in SEK million
As of Sept 30
2003 2004 2004 2003 2003
(4) (10) Metronome 2) 9 25 56
(16) 8 Sandrew Metronome 2) *) (8) 1 41
8 11 Publishing 1) 13 17 35
11 4 TV 2 Group 1) **) (EBIT) 45 104 195
*) Figures for 100% of Sandrew Metronome Group. Schibsted owns 50% of the company
**) Schibsted owns 33.3% of the company
44Enskilda Securities Nordic Seminar 2005
Operating revenues in line with last year, but weaker results
• Disappointing results from the major focus on interactive TV in Norway,
Sweden and Estonia – the expected positive development in Q3 did not occur
• Turn around in the Norwegian production company Rubicon after decreasing
order quantity and negative development. New management in place in Q3,
but 2004 is not expected to be a good year
• The Swedish TV production operations of Metronome maintains a solid
market position, but margins squeezed due to severe competition
45Enskilda Securities Nordic Seminar 2005
Substantial improvement in results compared to last year
• Improved results in both the cinema and distribution operations compared to
last year
• Positive development within domestic films, especially in Norway and Sweden
• Competition authorities finishes review of the sale of cinemas in Sweden in
December/January
• Blockbusters ”Harry Potter III” and ”Troia” on DVD/video in Q4
• New distribution agreement with Warner as of June 2005 – reorganization of
the video/DVD distribution of Sandrew Metronome
• Distribution of Warner’s and SM’s films operated by Warner
• Warner responsible for sales and logistics
• No influence on SM’s distribution of Warner’s cinema films in the Nordic countries
46Enskilda Securities Nordic Seminar 2005
Improved operating profit and generally stable operations
• Coordination of operations and resources in the merged Norwegian publishing houses proceeds according to plan
• Profit improvement in Q3 despite logistical problems throughout main parts of the year due to sale of international books
• Improved sale of Norwegian books in an overall decreasing market for books so far this year
• Stable circulation figures of the magazines Dine Penger, Maison and 4U – and Pondus close to a monthly sale of 70,000 copies
• Q4 is the most important quarter in terms of book sales – expectations associated with the new books Pondus and Petter Solberg
47Enskilda Securities Nordic Seminar 2005
TV Group
Olympics and Kanal 24 with negative influence on Q3
results
• Increased costs due to broadcasting of summer olympics
• Operating profit for the TV channel in Q3 of NOK 6 million (NOK 22
million)
• The subsidiaries TV 2 Nettavisen og TV 2 Interaktiv delivers improved
operating profits of NOK 0 million (NOK -4 million) and NOK 1 million
(NOK -3 million) in Q3
• Sale of share in TVNorge gives a profit of NOK 82.7 million
• Further write down of TV 2’s investment in Kanal 24 is by NOK 60 million
in Q3 – total exposure for TV 2 is presently close to NOK 55 million
48Enskilda Securities Nordic Seminar 2005
Income statement Schibsted Group
Q3 03 Q3 04 (NOK mill.) 2004 2003 2003
2 031 2 336 Operating revenues 6 930 6 229 8 555
(1 824) (2 078) Operating expenses (6 041) (5 382) (7 422)
(90) (93) Depreciation (272) (264) (354)
117 165 Operating profit (EBITA) 617 583 779
(15) (26) Amortisation and write-downs goodwill (68) (45) (61)
0 (4) Other revenues and expenses (91) 0 (17)
102 135 Operating profit (EBIT) 458 538 701
3 34 Income from associated companies 85 5 34
(9) 0 Net financial items (30) (27) (54)
96 169 Profit before taxes 513 516 681
(25) (51) Taxes (154) (155) (197)
71 118 Net income 359 361 484
1.02 1.53 EPS (NOK) 4.53 5.08 6.92
As of Sept 30
49Enskilda Securities Nordic Seminar 2005
Advertising – Paper Editions
Volume 1) Change Revenues ChangeAs of Sept 30 2004 2003-2004 2003-2004
Aftenposten 50 228 4,8 % 809 (5.5)%
Verdens Gang 5 157 (5.5)% 270 (5.3)%
Aftonbladet 2) 10 447 37.8% 301 32.0%
Svenska Dagbladet 2) 12 373 (14.2)% 229 (24.4)%
1) Column meters
2) SEK million
50Enskilda Securities Nordic Seminar 2005
Development in real estate and recruitment markets (rolling 12 months)
0
5
10
15
20
81 83 85 87 89 91 93 95 97 99 01 03
VO
LU
ME
1.0
00 c
ol.m
.
Recruitment market
Real estate market
52Enskilda Securities Nordic Seminar 2005
Operating profit (loss) – Online activities
Q3 03 Q3 04 (NOK mill.) 2004 2003 2003
68 119 Advertising revenues 339 198 269
20 24 Other revenues 69 52 83
88 143 Total operating revenues 408 250 352
(73) (99) Operating expenses (289) (202) (301)
15 44 Operating profit (loss) 119 48 51
As of Sept 30
Includes FINN, Bytbil, Mediearkivene and Retriever. Finnmer/Blocket is included from Q3 2003. The results are included in the Newspaper division.
53Enskilda Securities Nordic Seminar 2005
Multimedia – Operating profit (loss) (EBITA)
Q3 03 Q3 04 (NOK million) 2004 2003 2003
Operating revenues
35 61 Schibsted Mobile 145 87 122
8 9 Bokkilden 22 22 30
88 143 Online activities 408 250 352
131 213 Total operating revenues 575 359 504
Operating profit (EBITA)
2 2 Schibsted Mobile 3 (2) (6)
(2) (3) Bokkilden (7) (7) (10)
15 44 Online activities 119 48 51
15 43 Total operating profit (EBITA) 115 39 35
As of Sept 30
54Enskilda Securities Nordic Seminar 2005
Associated companies
Q3 03 Q3 04 (NOK million) 2004 2003 2003
(22) 0 20 Minutes 1) (11) (64) (75)
17 16 Regional new spapers 2) 42 32 45
7 18 TV 2 2) 27 36 61
0 0 Write-dow n in Kanal 24 (25) 0 0
1 0 Others 52 1 3
3 34 Income from associated companies 85 5 34
As of Sept 30
Schibsted’s share
1) To 29.02.04 included
2) Schibsted’s share of the result in TV 2 and the regional newspapers is adjusted for the write-down of Kanal 24.
55Enskilda Securities Nordic Seminar 2005
Operating profit (loss) – proforma
20 Minutes is consolidated as a subsidiary from 1 March 2004. Figures include 20 Minutes Group (Switzerland and Spain) as well as 50% of 20 Minutes France.
56Enskilda Securities Nordic Seminar 2005
Positive operating profit (EBITA) despite a seasonally weak quarter
• EUR 0.4 million in Q3
Close down of operations in Spain and France during the vacation
period
Largest newspaper in Switzerland with 782,000 daily readers (Blick
736,000 readers)
• 46.5% of readers in the age of 14 to 34 years
Expect stronger competition from established players in Spain
Not yet included in official readership surveys in France -
influences revenues negatively - may delay break-even
Launches in Bordeaux and Toulouse in September with circulation
of approx. 30,000 copies in each city
Growth in all markets
57Enskilda Securities Nordic Seminar 2005
Operating revenues and profit development
(10,0)
(5,0)
-
5,0
10,0
15,0
20,0
25,0
EU
R m
illio
n
Operating revenues EBITA
2002
Q1 Q2 Q3 Q4
2003
Q1 Q2 Q3 Q4
2004
Q1 Q2 Q3
58Enskilda Securities Nordic Seminar 2005
Key financial figures
1) Net interest bearing debt2) Holdings of own shares are offset against equity3) LTM
59Enskilda Securities Nordic Seminar 2005
Financial items
Q3 03 Q3 04 (NOK million) 2004 2003 2003
(8) (18) Net interest income (expense) (47) (29) (37)
(1) 4 Net foreign exchange gains (losses) 0 1 1
0 14 Net gains (losses) on shares etc. 17 1 (18)
(9) 0 Net financial items (30) (27) (54)
As of Sept 30
60Enskilda Securities Nordic Seminar 2005
Cash Flow / Investments
Q3 03 Q3 04 (NOK million) 2004 2003 2003
181 235 Cash flow from operations 754 739 984
207 258 EBITDA 889 847 1 133
57 42 Operational investments 131 201 263
17 96 Shares and other holdings 710 29 209
74 138 Total investments 841 230 472
Interest bearing debt 1 884 1 381 1 624
Net interest bearing debt 1 227 877 734
As of Sept 30
61Enskilda Securities Nordic Seminar 2005
Balance sheet
(NOK million) 2004 2003 2003
Fixed assets 5 089 4 776 4 836
Current assets 2 127 1 619 2 080
Total assets 7 216 6 395 6 916
Equity 2 749 2 593 2 530
Provisions 547 688 713
Long term liabilities 1 943 1 203 1 626
Current liabilities 1 977 1 911 2 047
Total equity and liabilitites 7 216 6 395 6 916
As of Sept 30
62Enskilda Securities Nordic Seminar 2005
IFRS
Standards and interpretations of these might be changed
Expect to choose solutions creating minimum differences where
options exist (accounting principles and transitional provisions)
Business combinations / Goodwill
• No amortisation of goodwill
• Goodwill may have to be reclassified to and be amortised as Other intangible
assets
• Limited requirements to reclassify goodwill acquired prior to 01.01.2004
• Amortisation in 2004 related to goodwill acquired prior to Jan 01, 2004 of
approx. NOK 60 million
63Enskilda Securities Nordic Seminar 2005
IFRS – cont’d
Pensions
• Limited effect on profits and equity expected for Norwegian plans, cf.
immaterial actuarial gains / losses as of Dec 31, 2003
• Uncertainty regarding accounting practice for Swedish plans
Share based payment
• Expensing of fair value of options with expected impact on profits of NOK 1-3
million (2004)
Dividends
• Timing of recognition as liability / increased equity at year end
64Enskilda Securities Nordic Seminar 2005
Circulation development – YTD
Circulation Change Change Circulation Change
2004 2003-2004 revenue 2003-2004
Aftenposten morning ed. 249 400 (6 700) (2.6)%
Aftenposten evening ed. 147 800 (8 000) (5.1)% 464 a) (5.3)%
Aftenposten Sunday 219 400 (12 900) (5.6)%
Verdens Gang weekdays 370 499 (14 318) (3.7)%
Verdens Gang Sunday 312 649 (4 341) (1.4)%
Aftonbladet weekdays 446 000 3 300 0.7%
Aftonbladet Sunday 499 000 5 000 1.0%
Svenska Dagbladet weekdays 178 700 (1 063) (0.6)%
Svenska Dagbladet Sunday 190 400 843 0.4%
920 a)
1104 b)
287 b)
(6.1)%
0.7%
8.7%
}
}
}
}a) Figures in NOK millionb) Figures in SEK million
65Enskilda Securities Nordic Seminar 2005
Operating profit (loss)
As of Sept 30
(NOK million) 2004 2003 2004 2003 2004 2003 2004 2003
Newpapers 609 499 (90) 0 (44) (18) 475 481
Baltics 16 20 0 0 (10) (10) 6 10
TV/Film 4 22 0 0 (8) (12) (4) 10
Publishing 13 17 (1) 0 (7) (6) 5 11
Other (25) 25 0 0 1 1 (24) 26
Total 617 583 (91) 0 (68) (45) 458 538
(EBIT)(EBITA)Operating profit Other revnues Goodwill Operating profit
and costs
66Enskilda Securities Nordic Seminar 2005
Actual results vs. analysts’ expectations
(NOK mill.)
Operating revenues 2 336 2 244
Operating profit (EBITA) 165 147
Operating profit (EBIT) 135 122
Pretax profit 169 144
TDN consensusActual
67Enskilda Securities Nordic Seminar 2005
Cash flow
(NOK million) 2004 2003 2003
Profit (loss) before taxes 513 516 681
+ Depreciation and amortisation 340 309 418
+/- Net changes in pensions 38 (13) (10)
+/- Income from associated companies 17 64 34
- Taxes payable (154) (137) (139)
Cash flow from operations 754 739 984
Change in working capital etc. (117) (157) (30)
Cash flow from operating activities 637 582 954
Cash flow from investing activities (783) (279) (410)
Cash flow before financing activities (146) 303 544
Cash flow per share (NOK) 11.12 10.88 14.53
As of Sept 30
68Enskilda Securities Nordic Seminar 2005
Newspapers – Operating profit (loss)
Q3 03 Q3 04 (NOK million) 2004 2003 2003
1 589 1 831 Operating revenues 5 387 4 810 6 511
(1 464) (1 664) Operating expenses (4 778) (4 311) (5 883)
125 167 Operating profit (EBITA) 609 499 628
(6) (17) Amortisation and write-downs goodwill (44) (18) (24)
0 (3) Other revenues and expenses (90) 0 (17)
119 147 Operating profit (EBIT) 475 481 587
(5) 10 Income from associated companies 26 (34) (31)
Operating margins (EBITA)
(6.6)% 6.7% Aftenposten Group (incl. avis1) 6.2% 2.4% 2.6%
22.8% 23.8% Verdens Gang Group 23.1% 22.7% 20.3%
11.0% 15.9% Aftonbladet Group 14.4% 11.0% 11.2%
0.0% 7.9% Svenska Dagbladet Group (4.5)% 1.4% 1.4%
As of Sept 30
69Enskilda Securities Nordic Seminar 2005
Operating profit (loss)
Q3 03 Q3 04 (NOK million) 2004 2003 2003
161 158 Circulation revenues 464 490 653 266 282 Advertising revenues 955 959 1 277 36 42 Other revenues 122 109 151
463 482 Total operating revenues 1 541 1 558 2 081
28 24 Raw materials 79 97 127 248 225 Personnel expenses 636 677 907 212 227 Other operating expenses 671 665 885 19 16 Depreciation 51 55 74
(16) 0 Royalty 0 18 22 (491) (492) Total operating expenses (1 437) (1 512) (2 015)
(28) (10) Operating profit (EBITA) 104 46 66 (3) (3) avis 1 (8) (9) (12)
(31) (13) Operating profit (EBITA) incl. avis 1 96 37 54
As of Sept 30
The operating profit (loss) is for the Aftenposten Group.
70Enskilda Securities Nordic Seminar 2005
Operating profit – the newspaper
Q3 03 Q3 04 (NOK million) 2004 2003 2003
161 158 Circulation revenues 464 490 653 230 232 Advertising revenues 809 856 1 138 35 36 Other revenues 108 105 141
426 426 Total operating revenues 1 381 1 451 1 932
28 24 Raw materials 79 97 127 234 205 Personnel expenses 585 639 865 202 213 Other operating expenses 628 633 836 17 14 Depreciation 45 50 67
(16) 0 Royalty 0 18 22 (465) (456) Total operating expenses (1 337) (1 437) (1 917)
(39) (30) Operating profit (EBITA) 44 14 15
As of Sept 30
Figures for Aftenposten AS (the newspaper)
71Enskilda Securities Nordic Seminar 2005
Advertising revenue split
The figures are for the newspaper Aftenposten AS.
Aftenposten ASFigures in NOK million Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 04 Q1 04 Q2 04 Q3 04
Total classified 247 177 161 183 216 158 139 178 173 119 122 149 143 113Recruitment 111 75 74 73 74 51 50 58 46 37 43 56 46 42Real estate 101 75 58 79 104 79 65 91 98 62 57 67 74 50Other classified 35 27 29 31 38 28 24 28 29 21 21 26 23 21
Total brand/display 141 103 135 129 131 108 145 130 144 110 160 146 140 119Brand/display 123 92 113 113 106 90 118 105 115 88 126 113 104 86Supplements 18 11 22 16 25 18 27 25 29 22 33 33 36 33
Unspes. market -5 -2 4 0 0 1 0 1 0 1 0 0 0 -1
Total classified -24 % -26 % -13 % -11 % -14 % -3 % -20 % -25 % -12 % -16 % -17 % -5 %Recruitment -39 % -48 % -33 % -32 % -32 % -21 % -38 % -27 % -13 % -4 % 1 % 14 %Real estate 4 % 14 % 3 % 5 % 12 % 15 % -6 % -22 % -12 % -26 % -25 % -19 %Other classified -15 % -14 % 9 % 4 % -17 % -10 % -24 % -25 % -13 % -7 % -21 % 0 %
Total brand/display -25 % -4 % -7 % 5 % 7 % 1 % 10 % 2 % 10 % 12 % -3 % 8 %Brand/display -29 % -10 % -14 % -3 % 4 % -7 % 8 % -2 % 7 % 8 % -10 % -2 %Supplements 9 % 81 % 39 % 66 % 22 % 53 % 18 % 25 % 21 % 32 % 25 % 50 %
Y/Y change:
72Enskilda Securities Nordic Seminar 2005
Pricing in the new Aftenposten
New pricing model will be introduced based on
response and effect
• The response of a tabloid full page is close to the
response of a full page in broadsheet. Therefore
priced to 75-85% of full page in broadsheet
• Response increases non-proportional with the
size of the ad – reflected in prices
• Introducing a new measurement method for ad
effects
Brand/display
ads
Classified
ads
Evening
issue
No short term impact
Positive long term
impacts due to new
readers
Competitive
advantage, especially
towards TV
Prises mainly unchanged, discount on larger ads, like for
brand/display ads. Differenciated pricing of recruitement ads
Same model as the morning edition
Focus moved from modular to fraction of pageDeveloped in close cooperation with advertisers
73Enskilda Securities Nordic Seminar 2005
Operating profit
Q3 03 Q3 04 (NOK million) 2004 2003 2003
31 42 Advertising revenues 122 90 121
3 2 Other revenues 6 8 14
34 44 Total operating revenues 128 98 135
(19) (27) Total operating expenses (74) (59) (91)
15 17 Operating profit (EBITA) 54 39 44
As of Sept 30
74Enskilda Securities Nordic Seminar 2005
Operating profit
Q3 03 Q3 04 (NOK million) 2004 2003 2003
356 341 Circulation revenues 920 980 1 300 97 108 Advertising revenues 314 315 426 7 8 Other revenues 23 19 27
460 457 Total operating revenues 1 257 1 314 1 753
31 31 Raw materials 80 84 112 94 97 Personnel expenses 261 257 362
212 217 Other operating expenses 617 624 857 5 3 Depreciation 8 12 16
13 0 Royalty 0 38 51 (355) (348) Total operating expenses (966) (1 015) (1 398)
105 109 Operating profit (EBITA) 291 299 355
As of Sept 30
The operating profit includes VG AS, VG Multimedia AS and Avisretur AS
75Enskilda Securities Nordic Seminar 2005
Operating profit
Q3 03 Q3 04 (SEK million) 2004 2003 2003
380 377 Circulation revenues 1 104 1 096 1 457 84 153 Advertising revenues 426 264 380 10 14 Other revenues 42 34 55
474 544 Total operating revenues 1 572 1 394 1 892
57 59 Raw materials 167 162 216 95 103 Personnel expenses 300 271 369
264 293 Other operating expenses 872 797 1 088 2 2 Depreciation 6 6 8
(418) (457) Total operating expenses (1 345) (1 236) (1 681) 56 87 Operating profit (EBITA) 227 158 211
Exchange rate: NOK/SEK 91.99 86.5 87.69
As of Sept 30
The operating profit is for the Aftonbladet Group
76Enskilda Securities Nordic Seminar 2005
275 000
325 000
375 000
425 000
475 000
525 000
jan.
00m
ar.0
0m
ai.0
0ju
l.00
sep.
00no
v.00
jan.
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v.01
jan.
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v.02
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4ju
l.04
sep.
04
Aftonbladet Expressen/GT/KvP
Circulation 2000 – 2004
Circulation
Per publishing day
Gap
77Enskilda Securities Nordic Seminar 2005
Operating profit
Q3 03 Q3 04 (SEK million) 2004 2003 2003
92 96 Circulation revenues 287 264 359 85 65 Advertising revenues 236 308 424 5 1 Other revenues 3 8 7
16 16 Government subsidies 49 49 65 198 178 Total operating revenues 575 629 855
21 19 Raw materials 62 69 97 52 52 Personnel expenses 175 174 241
122 116 Other operating expenses 351 365 489 3 4 Depreciation 12 12 16
(198) (191) Total operating expenses (600) (620) (843) 0 (13) Operating profit (loss) (EBITA) (25) 9 12
Exchange rate: NOK/SEK 91.99 86.5 87.69
As of Sept 30
The operating profit (loss) is for the Svenska Dagbladet Group
78Enskilda Securities Nordic Seminar 2005
Operating profit
Q3 03 Q3 04 (NOK million) 2004 2003 2003
162 168 Operating revenues 487 490 662
(159) (167) Operating expenses (477) (477) (649)
3 1 Operating profit (EBITA) 10 13 13
As of Sept 30
79Enskilda Securities Nordic Seminar 2005
Advertising development regional newspapers
Q3 03 Q3 04 Change 2003
6 865 9 581 39.6% Adresseavisen 30 963
5 930 7 109 19.9% Bergens Tidende 26 909
3 146 3 618 15.0% Fædrelandsvennen 13 532
1 470 1 445 (1.7)% Harstad Tidende 6 277
5 613 6 471 15.3% Stavanger Aftenblad 26 213
Figures represent volume measured in column meters, excl. supplements
80Enskilda Securities Nordic Seminar 2005
Operating profit (EBITA) in Q3 of NOK 2 million (3 million)
• Turnover growth of 15% in Q3
Generally weak ad market in Q3
Printing plant problems due to new equipment not yet solved
Kanal 2 has success with the relaunched news as of August –
market leader in Prime Time
Stable good operation for the magazines in Lithuania
• Relaunch of magazine in August reduces the result
ŽLGThe Baltics
81Enskilda Securities Nordic Seminar 2005
Operating profit – Baltics
GW: Goodwill
Q3 03 Q3 04 (NOK million) 2004 2003 2003
65 75 Operating revenues 232 209 288 (62) (73) Operating expenses (216) (189) (260)
3 2 Operating profit (EBITA) 16 20 28
(3) (4) Amortisation and write-downs GW (10) (10) (13) 0 (2) Operating profit (loss) (EBIT) 6 10 15
As of Sept 30
ŽLG
82Enskilda Securities Nordic Seminar 2005
Operating profit – Baltics
GW: Goodwill
Exchange rate NOK / EEK 53.87 50.65 51.13
Eesti Meedia Group
Q3 03 Q3 04 (EEK million) 2004 2003 2003
109 117 Operating revenues 363 352 474 (98) (105) Operating expenses (324) (308) (417) 11 12 Operating profit (EBITA) 39 44 57
(1) (1) Amortisation and write-downs GW (4) (5) (7) 10 11 Operating profit (EBIT) 35 39 50
As of Sept 30
AS Kanal 2
Q3 03 Q3 04 (EEK million) 2004 2003 2003
14 14 Operating revenues 61 62 91 (20) (21) Operating expenses (70) (67) (94) (6) (7) Operating profit (loss) (EBITA) (9) (5) (3)
As of Sept 30
83Enskilda Securities Nordic Seminar 2005
Operating profit (loss) – TV/Film
GW: Goodwill
Q3 03 Q3 04 (NOK million) 2004 2003 2003
251 279 Operating revenues 901 872 1 258
(260) (285) Operating expenses (897) (850) (1 192)
(9) (6) Operating profit (EBITA) 4 22 66
(4) (3) Amortisation and write-downs GW (8) (12) (16)
(13) (9) Operating profit (EBIT) (4) 10 50
7 25 Income from associated companies 27 36 61
As of Sept 30
84Enskilda Securities Nordic Seminar 2005
Operating profit
Q3 03 Q3 04 (SEK million) 2004 2003 2003
153 152 Operating revenues 552 568 801
110 113 Raw materials 398 395 543
28 27 Personnel expenses 84 88 121
14 18 Other operating expenses 48 46 64
5 4 Depreciation 13 14 17
(157) (162) Total operating expenses (543) (543) (745)
(4) (10) Operating profit (EBITA) 9 25 56
(1) (1) Amortisation and w rite-dow ns GW (2) (2) (3)
(5) (11) Operating profit (EBIT) 7 23 53
2.6% (6.8)% Operating margin (EBITA) 1.6% 4.4% 7.0%
Exchange rate NOK/SEK 91.99 86.5 87.69
As of Sept 30
Accounts for Metronome Group. 100% is included in the consolidated accounts. Schibsted owns 65%
GW: Goodwill
85Enskilda Securities Nordic Seminar 2005
Operating profit
Q3 03 Q3 04 (SEK million) 2004 2003 2003
245 307 Operating revenues 857 880 1 272
161 196 Raw materials 541 562 798
41 43 Personnel expenses 132 131 178
38 37 Other operating expenses 122 122 166
21 23 Depreciation 70 64 89
(261) (299) Total operating expenses (865) (879) (1 231)
(16) 8 Operating profit (EBITA) (8) 1 41
(1) (2) Amortisation and w rite-dow ns GW (5) (4) (6)
(17) 6 Operating profit (EBIT) (13) (3) 35
(6.5)% 2.3% Operating margin (EBITA) (1.0)% 0.1% 3.2%
Exchange rate NOK/SEK 91.99 86.50 87.69
As of Sept 30
Accounts for the Sandrew Metronome Group. Schibsted owns 50% of the Group. 50% is included in the consolidated accounts for Schibsted.
86Enskilda Securities Nordic Seminar 2005
Q3 03 Q3 04 (NOK million) 2004 2003 2003
320 365 Operating revenues 1 235 1 137 1 618
107 147 Programming expenses 502 395 543 99 103 Personnel expenses 351 316 441 91 100 Other operating expenses 306 285 391 12 11 Depreciation 31 37 48
(309) (361) Total operating expenses (1 190) (1 033) (1 423)
11 4 Operating profit (loss) 45 104 195
15 89 Net f inancial items 86 16 15
0 (75) Income from associated companies (106) (6) (10)
(4) 0 Taxes 1 (3) (13)
22 18 Net income (loss) 26 111 187
As of Sept 30
Accounts for the TV 2 Group. Schibsted owns 33.3% of the company
Operating profit (loss) TV Group
87Enskilda Securities Nordic Seminar 2005
Operating profit – Publishing
GW: Goodwill
Q3 04 Q3 04 (NOK million) 2004 2003 2003
82 78 Operating revenues 234 234 349
(74) (67) Operating expenses (221) (217) (314)
8 11 Operating profit (EBITA) 13 17 35 (2) (3) Amortisation and w rite-dow ns GW (7) (6) (9) 0 (1) Other revenues and expenses (1) 0 0 6 7 Operating profit (EBIT) 5 11 26
As of Sept 30
88Enskilda Securities Nordic Seminar 2005
Our markets
NorwayVG – no. 1 newspaper
Aftenposten – leading morning newspaper
Finn.no – no. 1 classifieds portal
Sandrew Metronome – movie distribution/production
Scanpix – picture agency
Bokkilden – Internet bookstore
Schibsted Mobile – mobile services
Schibsted Forlagene – publishing house
TV 2 – no. 1 commercial TV-channel
SwedenAftonbladet - no. 1 newspaper in the Nordic area
Svenska Dagbladet – leading morning newspaper
Blocket – no. 1 classifieds portal
Sandrew Metronome – movie distribution/production
Metronome – tv/film production
Schibsted Mobile – mobile services
Denmark/Finland
Sandrew Metronome - movie distribution/production
Schibsted Mobile – mobile services
Switzerland/Spain/France
20 Minutes – free newspaper
EstoniaEesti Meedia – media groupKanal 2 – leading commercial TV-channel
Latvia/LithuaniaSchibsted Mobile – mobile servicesZLG -- publishing house
89Enskilda Securities Nordic Seminar 2005
Schibsted – historical development
1839 Chr. Schibsted Forlag (publishing house) founded
1860 Christiania Adresseblad launched in Oslo – renamed Aftenposten in
1861
1966 Takeover of VG
1989 Reorganisation from a private family company to a limited company
1992 Listing at the Oslo Stock Exchange with a growth strategy declaration
1992 First TV and film investments
1995 First New Media/Internet investments
1995 First investments in Kanal 2 in Estonia
1996 Acquisition of Aftonbladet
1998 Acquisition of Svenska Dagbladet
1998 Investment in Eesti Meedia Group
1999 Launch of the free newspaper concept 20 Minutes
90Enskilda Securities Nordic Seminar 2005
0
250
500
750
1000
1250
1500
1750
2000
2250
2500
2750
3000
3250
3500
VG
Dagbladet
Aftenposten
Nettavisen2)
Development of the largest online newspapers in Norway
Unique monthly visitors, figures in thousands
Note:1996-2001 calculated based on weekly visitors1)Includes TV 2 and Nettavisen2)Nettavisen reported separately until September 2003Source:Gallup RedMeasure
TV 21)
91Enskilda Securities Nordic Seminar 2005
455
483
509
889
785
840
1187
1552
1336
1822
1463
2009
467
579
653
754
1108
1114
1199
1367
1516
1815
2407
2423
2433
2655
3043
Telenor Mobil
Start
Online
DinSide.no
SOL
NRK.no
FINN
Gule Sider
Aftenposten.no
Kvasir
Dagbladet.no
TV2
Startsiden
MSN
VG
June 2004
June 2003
Norway – top list unique visitors March 2004
92Enskilda Securities Nordic Seminar 2005
Aftonbladet – unique visitors (monthly)
1440 13531127
1548 1437 14061603 1695
3474 36143355
3857 3966
4730
3887
55405686
5997
5480
Q100
Q200
Q300
Q400
Q101
Q201
Q301
Q401
Jan02
Mar02
Jun02
Sep02
Dec02
Mar03
Jun03
Sep03
Jan04
Mar04
Jun04
Source: WIS - figures in thousands
93Enskilda Securities Nordic Seminar 2005
Web Addresses www.schibsted.nowww.20min.fr
www.20minutos.es
www.ntb.no
www.scanpix.com
www.picturegate.com
www.tt.se
www.tv2.no
www.nettavisen.no
ww.sandrewmetronome.se
www.sandrewmetronome.dk
www.sandrewmetronome.no
www.sandrewmetronome.fi
www.kinopalatsi.fi
www.metronome.se
www.meterfilm.se
www.mekano.se
www.mekaniken.se
www.filmlance.se
www.rubicontv.no
www.nordicent.no
www.moland.com
www.metronome.dk
www.bsl.dk
www.bullet.dk
www.metronome.fi
www.europeanfilmgroup.com
www.bigbrother.no
www.svenskaforlaget.com
www.schibsted-forlag.no
www.sch-ib.no
www.bladkompaniet.no
www.dinepenger.no
www.inpoc.com
www.bokkilden.no
www.primetime.net
www.dagensmedisin.no
www.tique.no
European Media Venture’s companies:
www.skiinfo.no
www.startsiden.no
www.huginonline.no
www.datek.no
www.basefarm.no
www.aftenposten.no
www.finn.no
www.mediearkivet.no
www.oslopuls.no
www.di.no
www.vg.no
www.avis1.no
www.aftonbladet.se
www.blocket.se
www.mediearkivet.se
www.svd.se
www.postimees.ee
www.sloleht.ee
www.kroonika.ee
www.kanal2.ee
www.adresseavisen.no
www.trondheimpuls.no
www.bergens-tidende.no
www.bergenpuls.no
www.aftenbladet.no
www.stavangerpuls.no
www.fedrelandsvennen.no
www.20min.ch
ŽLG
95Enskilda Securities Nordic Seminar 2005
Top 20 shareholders
Number of shares outstanding3: 69,250,000Number of shareholders: 4,790 Foreign ownership: 44.1%
As of Oct 25, 2004 Number of shares Ownership (%)
1. Blommenholm Industrier 18,083,520 26.11
2. State Street Bank & Client O D 7,405,347 10.69
3. Folketrygdfondet 5,264,150 7.6
4. Capital Reseach 4,598,200 6.645. Marathon Asset Management 1) 2) 4,238,761 6.12
6. Mellon Bank 4,152,282 6.00
7. J P Morgan Chase Bank Clients T 3,356,976 4.85
8. Vital Forsikring ASA 1,711,146 2.47
9. Fidelity 1) 2) 1,329,500 1.92
10. Orkla ASA 1,147,931 1.66
11. J P Morgan Chase Bank Fid 963,150 1.39
12. The Northers Trust C Treaty 806,405 1.16
13. J P Morgan Chase Bank Schroders Lux 708,550 1.02
14. DnB NOR Norge 689,081 1.00
15. Guri Scotford 650,000 0.94
16. The Northern Trust C Usl 539,228 0.78
17. State Street Bank & Client O F 505,596 0.73
18. J P Morgan Chase Bank Omnibus 486,032 0.70
19. Verdipapirfondet Avanse 465,616 0.67
20. J P Morgan Chase Bank S/A 427,997 0.62
1) The company is buying via nominee
accounts. Their holdings may appear twice if the buy via others on the list 2) As of Sept 10, 2004 3) 1,380,470 of these shares
owned by Schibsted ASA
96Enskilda Securities Nordic Seminar 2005
Investor Information
• Please visit Schibsted’s home pages:
• www.schibsted.no
• Register to subscribe to press releases
• Catharina Thorenfeldt. VP IR & Group Treasurer
• Elisabeth Blom Tindlund. Investor Relations Officer
• Tel: +47 23106600