Newspaper Conference 2009 - BDZV...Charles Darwin ”It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” ‘Survival

Newspaper Conference 2009 Shaping the media of tomorrow. Today.

Kjell Aamot, libero (former CEO), Schibsted ASA

September 15, 2009

Charles Darwin

”It is not the strongest of the species that survive, nor the most intelligent,

but the one most responsive to change.”

‘Survival of the fittest’

3

From newspapers and books in Norway to an European media group

“We shall become the leading media company in Scandinavia”

*1994

# employees # countries revenues result

2 1001

3 billNOK

0.3 billNOK

From newspapers and books in Norway to a European media group

“Schibsted shall become the most attractive media group in Europe”

*2008

# employees # countries revenues2007

result2007

9 000

23

13.6 billNOK

1.2 billNOK

36 % 37 %

45 %

62 %

43 %

19 %

13 %

44 %

61 %

31 %

Q2 08 Q2 09

Online revenue growth and margins in Q2

7

SCM Spain 1)

%

-1%

Revenue growth Y/Y

-22%

-4%

17%

-17%

Ope

ratin

g m

argi

n (E

BIT

A)

EBITA margin

1) EBITDA for Schibsted Classified Media Mature online operations Spain

13 %

11 %

13 %

7 %6 %

16 %

6 %

0 %

Q2 08 Q2 09

8

%

-33%

Advertising growth Y/Y -12%

-27%

-20%

Ope

ratin

g m

argi

n (E

BIT

A)

EBITA margin

Print advertising growth and margins in Q2

0200400600800

1.0001.2001.400

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Online Offline

02468

101214

Q2 08 Q3 08 Q4 08 Q1 09 Q2 09

Online Print

Continued overall online growth

9

• Overall migration towards online media continue

• Online growth in Q2 2009 5% Y/Y

• 28% of group operating revenues last 12 months came from online activities

• 69% of operating profit from online (ex headquarter cost and associated companies)

Online share of revenues rolling 12 months

Online share of EBITA* rolling 12 months

28%

*) EBITA excluding headquarter cost and contribution from associated companies.

NO

K m

illio

nN

OK

bill

ion

69%

The Economist, August 2006

Schibsted - a worldwide exception within newspaper business

”Running away from its printed past..”

• “The first thing to greet a visitor to the Oslo headquarters of Schibsted, (..), is its original, hand-operated printing press from 1856”

• ”Although Schibsted gives pride of place to its antique machinery, the company is in fact running away from its printed past as fast as it can”

• ”Unfortunately for the newspaper industry, Schibsted is a rare exception”

• “News of Schibsted's success online has spread far in the newspaper industry”

Quote: The Economist print edition on 26 August 2006

Schibsted interests academia

When the going got tough, we kept on going

“Schibsted has become so emblematic of online success that Bharat Anand, a professor at Harvard Business School, is writing one of the institution’s well-known case studies on the company.”

- International Herald Tribune, Feb 2007

Schibsted’s dual ownership structure results in a balanced challenge

The ”Tinius Trust” Institutional Investors• Scandinavia• London• New York

Not afraid to cannibalize ourselves

NOK million

86 96 98 99 9372 68 56 46

30 25 21 15

29 43 64 83105

13312

0

30

60

90

120

150

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Aftenposten

FINN

Aftenposten and FINN charge approximately the same for an ad, about NOK 200-300

80 85 89

10894

126

Aftenposten vs. Finn - Cars

148

1371 1323 1242 1215 1158 1136 1118 1028 981848 763 667

Readership print only (Norway)

97/2

Source: Gallup (96/97 represents Forbruker & Media 02/97)

Only paper version

Daily readership, thousands

98/2 99/2 00/2 01/2 02/2 03/2 04/2 06/2 07/2 08/205/2

1371 1323 1242 1215 1158 1136 1118 1028 981848 763 667

79 143 185 213 259306 375

446465

501


97/2



98/2 99/2 00/2 01/2 02/2 03/2 04/2 06/2 07/2 08/205/2

13 46

Both online and paperOnly paper version

1371 1323 1242 1215 1158 1136 1118 1028 981848 763 667

79 143 185 213 259306 375

446465

501

70123 179 222 278 358

491 616 757 879


97/2



98/2 99/2 00/2 01/2 02/2 03/2 04/2 06/2 07/2 08/205/2

Only online versionBothOnly paper version

1393 1403 13911481 1522

15711655 1692

18471910 1985

2047

VG Online – April 2007; ”Larger than my mum”

Crosslink is key

E24.se

Jobb24.se

The traffic machine can drive new growth

Since the first lauch of Swedish Metro in 1995, free newspapers have been launched in 58 countries, with 244 titles and circulation above 44 million copies

Source: Newspaperinnovation.com, august 08

20minutes – a success conceptModern editorial concept

- no political spin- fact based update- short articles & attractive design- handy format & full colour- content for young people

Attractive for advertisers- innovative and flexible solutions- our readers are the most attractive group

for big advertisers- cross media promotion – full integration

between print, web and mobile

Innovative distribution- free - centered around public transport- reach young, active, urban readers in

empty time slot- low cost due to concentration

20 minutes has built an attractive and loyal audience• 51% are between 25-49 years old

• 50 % are women

• 86 % read the paper at least three times a week

• 70 % read no paid papers

20 minutos is the most read newspaper in Spain ever, with 2 911 000 readers

Readership development of main Spanish titles (1000)

Source: EGM, AIMC

0

500

1000

1500

2000

2500

3000

3500

t1 0

1

t2 0

1

t3 0

1

t1 0

2

t2 0

2

t3 0

2

t1 0

3

t2 0

3

t3 0

3

t1 0

4

t2 0

4

t3 0

4

t1 0

5

t2 0

5

t3 0

5

t1 0

6

t2 0

6

t3 0

6

t1 0

7

t2 0

7

t3 0

7

t1 0

8

t2 0

8

Marca El Pais El Mundo 20minutes Metro Que! ADN

20 minutes is most read paper in France with more than 2,6 mill readers

Source: EuroPQN, ISL/GFK, EPIQ

0

500

1000

1500

2000

2500

3000

2005 2005/2006 2006 2006/2007 2007 2007/2008

Le Monde Le Parisien/AeF L'Equipe Le Figaro20minutes Metro Direct Soir Ville Plus

Free News | …now building the online audience

Nr 3 Nr 3

European business sites

European business site: Unique visitors monthly (m): Source:

6. BBC UKFS Business 2,0 NNR7. LesEchos.fr 1,8 NNR8. FAZ 1,7 Website9. Forbes.com Europe 1,5 NNR10. El Economista 1,3 NNR11. Expansion.com 1,1 NNR12. Invertia 0,9 NNR13. finanzas.com 0,9 NNR14. Handelsblatt.com 0,7 AGOF15. FTD.de 0,7 Website



5. DI.se 2,1 KIA6. BBC UKFS Business 2,0 NNR7. LesEchos.fr 1,8 NNR8. FAZ 1,7 Website9. Forbes.com Europe 1,5 NNR10. El Economista 1,3 NNR11. Expansion.com 1,1 NNR12. Invertia 0,9 NNR13. finanzas.com 0,9 NNR14. Handelsblatt.com 0,7 AGOF15. FTD.de 0,7 Website



4. Il Sole 24 Ore 2,1 NNR5. DI.se 2,1 KIA6. BBC UKFS Business 2,0 NNR7. LesEchos.fr 1,8 NNR8. FAZ 1,7 Website9. Forbes.com Europe 1,5 NNR10. El Economista 1,3 NNR11. Expansion.com 1,1 NNR12. Invertia 0,9 NNR13. finanzas.com 0,9 NNR14. Handelsblatt.com 0,7 AGOF15. FTD.de 0,7 Website



3. Reuters UK 3,5 ABCe4. Il Sole 24 Ore 2,1 NNR5. DI.se 2,1 KIA6. BBC UKFS Business 2,0 NNR7. LesEchos.fr 1,8 NNR8. FAZ 1,7 Website9. Forbes.com Europe 1,5 NNR10. El Economista 1,3 NNR11. Expansion.com 1,1 NNR12. Invertia 0,9 NNR13. finanzas.com 0,9 NNR14. Handelsblatt.com 0,7 AGOF15. FTD.de 0,7 Website



2. FT.com 3,7 ABCe3. Reuters UK 3,5 ABCe4. Il Sole 24 Ore 2,1 NNR5. DI.se 2,1 KIA6. BBC UKFS Business 2,0 NNR7. LesEchos.fr 1,8 NNR8. FAZ 1,7 Website9. Forbes.com Europe 1,5 NNR10. El Economista 1,3 NNR11. Expansion.com 1,1 NNR12. Invertia 0,9 NNR13. finanzas.com 0,9 NNR14. Handelsblatt.com 0,7 AGOF15. FTD.de 0,7 Website

E24 no. 1 in Europe


1. E24 (se+no+fr+nl+ee) 5,3 Site centric2. FT.com 3,7 ABCe3. Reuters UK 3,5 ABCe4. Il Sole 24 Ore 2,1 NNR5. DI.se 2,1 KIA6. BBC UKFS Business 2,0 NNR7. LesEchos.fr 1,8 NNR8. FAZ 1,7 Website9. Forbes.com Europe 1,5 NNR10. El Economista 1,3 NNR11. Expansion.com 1,1 NNR12. Invertia 0,9 NNR13. finanzas.com 0,9 NNR14. Handelsblatt.com 0,7 AGOF15. FTD.de 0,7 Website

Our strategy

Three strategies

Dominate markets Roll out proven products Best skills in Europe

1. Media house 2. Product 3. Capability building

37

The Mediahouse strategy – building the leading “media mall”

Three strategies



Schibsted Classified Media (SCM)Chairman: Sverre MunckManaging Director: Terje Seljeseth

Revenues ‘07: NOK 2.0 billionEBITA 2007: NOK 290 million

Spain Sweden France Italy Belgium

Austria Lithuania Malaysia Slovenia Estonia

coin.fr/

44

Strong development for new Blocket launches, LeBonCoin operating margin of 45%

Classifieds

• Blocket concept launched in 7 countries outside Sweden

• Continued strong development for LeBonCoin (50% owned)

• Traffic increase 86% last twelve months

• EBITDA margin 45%

• Operating revenues Q2 2009 EUR 4.2 million (100% of the company)

• Subito in head to head competition for #1 position in Italy

• New launch in Greece in Q2

Source: Nielsen Netratings July 2009

Three strategies



Market InsightMarket Insight

InnovationInnovation

SalesSales

We are aiming to be best in four areas:

OrganisationOrganisation

Time of opportunities

Charles Darwin

”It is not the strongest of the species that survive, nor the most intelligent,

but the one most responsive to change.”

‘Survival of the fittest’

48

Documents

Newspaper Conference 2009 - BDZV...Charles Darwin ”It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” ‘Survival