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Tittel Financials and financial targets

Undertittel

TROND BERGER CFO

AGENDA

Net interest bearing debt, balance sheet and cash flow Framework for investments Financial targets

Summary

CMD 2010 - Trond Berger - Financials and financial targets 2

Financial gearing significantly reduced

·

Divestment of assets

· Totalling approx NOK 2 billion

8 000 7 000 6 000 5 000 4,0 3,5 3,0 2,5

·

·

Rights issue

Million NOK

4 000

3 000 2 000 1 000 0

2,0

1,5 1,0 0,5 0,0

Profitability programme

· Total effect achieved NOK 1.5 billion · Target NOK 1.7 billion

EBITDA LTM

NIBD

NIBD/EBITDA (right axis)

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CMD 2010 - Trond Berger - Financials and financial targets

NIBD/EBITA

· NOK 1.3 billion

Refinancing of long term debt in place - flexibility to pursue strategic opportunities

· ·

New loan agreements signed with effect from 31 August 2010 Long term syndicate with drawing rights of totally EUR 500 million NOK milllion

· of which EUR 175 million 3 year maturity · of which EUR 325 million 5 year maturity

Debt maturity profile

3 000

2 500

2 000

1 500

· ·

Bond issue is planned. "Bridge to bond facility" of NOK 1 billion in place Secures flexibility to pursue strategic options

1 000

500

· Take part in consolidation · Carry out small and medium size acquisitions · Buy out partners or minorities if opportunities occur

< 1 yr < 2 yrs < 3 yrs < 4 yrs < 5 yrs < 6 yrs > 6 yrs

Interest-bearing debt

Undrawn facilities

Interest bearing debt as of 30 June 2010 given new loan agreements

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CMD 2010 - Trond Berger - Financials and financial targets

Balance sheet details

(NOK million) Non-current assets Current assets Total assets Equity Non-current liabilities Current liabilities Total equity and liabilities 30.6 2010 10 201 3 891 14 092 5 598 4 038 4 456 14 092 30.6 2009 12 082 4 654 16 738 4 165 6 695 5 878 16 738 31.12 2009 10 852 4 368 15 220 5 274 5 635 4 311 15 220

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CMD 2010 - Trond Berger - Financials and financial targets

Balance sheet details ­ Non current assets

(NOK million) Intangible assets Investment property and property, plant and equipment Investment in associated companies Other non-current assets Non-current assets 30.6 2010 7 041 2 131 432 597 10 201 30.6 2009 7 940 2 819 433 890 12 082 31.12 2009 7 222 2 522 411 697 10 852

·

Main Intangible assets are related to SCM in Spain

·

Impairment testing of intangible assets with an indefinite useful life is tested for impairment at least annually

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CMD 2010 - Trond Berger - Financials and financial targets

Cash flow and investments

· ·

2500 2000 Mill NOK 1500 1000 500 0 2004 2005 2006 2007 2008 2009 1H 10 LTM

EBITDA CAPEX CAPEX/Revenue (right axis)

Normal maintenance CAPEX NOK 400-500 million Last twelve months CAPEX NOK 308 million

25 %

(NOK million)

1.1 - 30.6 1.1 - 30.6 2010 1 214 319 (61) (8) (284) 1 180 (523) (44) 613 616 1 229 2009 (139) 335 402 7 106 15 726 (334) (220) 172 408 580 Profit (loss) before taxes (continuing operations) Profit (loss) before taxes discontinued operations + Depreciation, amortisation and impairment losses + / - Net changes in pensions + / - Income from associated companies - Taxes payable Cash flow from operations Sales losses / (gains) non-current assets Change in working capital etc. Net cash flow from operating activities Net cash flow from investing activities Net cash flow before financing activities

1.1 - 31.12 2009 279 335 876 118 104 (102) 1 610 (424) (253) 933 148 1 081

20 % 15 % 10 % 5% 0%

7

CMD 2010 - Trond Berger - Financials and financial targets

Unique exposure to online revenue sources maintained

Split online/offline revenues rolling 12 months

14 12 10 8 6 4 2 0 Q2 09 Q3 09 Q4 09 Q1 10

Good growth from online activities even during financial crisis

30 % 25 % 20 %

NOK billion

29%

Q2 10

15 % 10 % 5% 0% -5 % -10 % -15 % Online

Online

Offline

Split online/offline EBITA* rolling 12 months

2 000 NOK million 1 500 1 000 500 0 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10

Print

52%

-20 % 2008 2009 YTD 2010

Note: Print growth ex. consolidation effect linked to Media Norge.

Online Offline CMD 2010 - Trond Berger - Financials and financial targets

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

AGENDA

Net interest bearing debt, balance sheet and cash flow Framework for investments Financial targets

Summary

CMD 2010 - Trond Berger - Financials and financial targets 9

Investment criteria

Return on investment determined by risk

·

Schibsted growth ambitions along two axes

· Organic initiatives ­ focused on Online classifieds - Blocket roll outs · Small and medium sized acquisitions focused on Online classifieds ­ bolt on acquisitions ­ and other online related assets

·

Framework for investment decisions

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CMD 2010 - Trond Berger - Financials and financial targets

Assets evaluated at least on a quarterly basis Market position basis (traffic volume and

quality, content, monetization) Evaluation moment Evaluation moment Evaluation moment

Competitor 1

Competitor 2

SCM site

Months 0 3 6 9 12 Key focus: Competition 15 18 21 24 27 30 33 36 Key focus: Profitability

Launch: Set targets and budget for first year

11

Key focus: Market leadership

CMD 2010 - Trond Berger - Financials and financial targets

Allocation of capital

Basic areas of evaluation

Market Attractiveness

Competition

Traffic

Ad Volume

Marketing

Costs

Organization

Outlook

12

CMD 2010 - Trond Berger - Financials and financial targets

AGENDA

Net interest bearing debt, balance sheet and cash flow Framework for investments Financial targets

Summary

CMD 13 2010 - Trond Berger - Financials and financial targets

Financial targets

New financial targets for Schibsted ­ Background

Targets for the coming 3-5 years period Schibsted should develop towards and meet the targets within this time frame Targets to be achieved given a mid cycle environment

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CMD 2010 - Trond Berger - Financials and financial targets

Financial targets

New financial targets for Schibsted ­ Summary

EBITA margin · Schibsted Group: 10-12% · Including investments taken over P&L, that potentially will affect ratio with 2-3% Revenue growth · 5% annual growth Financial gearing · NIBD/EBITDA last 12 months: 1x-2x · In special situations up to 3x ­ with a plan to reduce to normal range Dividend policy · 25-40% of cash flow Equity ratio · 35-50% · Minimum 25%

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CMD 2010 - Trond Berger - Financials and financial targets

Financial targets

Historical development for EBITA margin

16000 16,0 % 14000 14,0 %

Target: 10-12%

12000 12,0 %

10000

10,0 %

8000

8,0 %

Average 7.4%

6000

6,0 %

4000

4,0 %

2000

2,0 %

0 1998 1999 2000 2001 Revenue 2002 2003 2004 2005 2006 2007 2008 2009 LTM

0,0 %

EBITA margin

Average EBITA margin

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CMD 2010 - Trond Berger - Financials and financial targets

Financial targets

EBITA margin for Schibsted Group: 12%

·

Growth for high margin Online classifieds operations

· However continued margin dilution from growth initiatives in Established operations and operations in Investment phase

·

Profitability programme strengthens margin potential in Media Houses

· Exposed to cyclical recovery in advertising markets · Scope for further synergies across Media Norge and Schibsted Sverige · Challenging volume development for single copy sold newspapers · Focus on profitability and limit cost inflation in periods of cyclical growth

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CMD 2010 - Trond Berger - Financials and financial targets

Financial targets

Revenue growth: 5% annually growth

·

Online classifieds: Continued strong growth, in line with what has been observed during the last few years

· Volume growth and increased contribution from broadening revenue base from exciting products as well as from new products and services in Established operations · Continued growth from new markets · Small and medium size bolt on acquisitions

·

Media houses ­ subscription based newspapers: Continued positive revenue development expected

· Measured decline in circulation volume expected to be offset by price adjustments and increased monetization online

·

Media houses ­ single copy sold newspapers: Seek to a maintain revenues to the largest possible degree

· Decline in circulation volume · Potential to increase cover price · Increased monetization online ­ new online services

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*) Pro forma including "Trader" for full year 2006.

CMD 2010 - Trond Berger - Financials and financial targets

Financial targets

Financial gearing: NIBD/EBITDA 1x-2x

·

Guideline for financial target: NIBD/EBITDA ratio of 1-2x

8 000 7 000 4,0

·

· · ·

In a normal situation closer to 2x than 1x

May go up to 3x in special situations ­ with a plan to reduce to normal level Somewhat more prudent target that earlier policy due to cyclical revenue base Target for equity ratio: 35%50%, with a minimum level of 25%

· As of Q2 2010: 40%

Million NOK

Trader acquisition Financial crisis

3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0

6 000 5 000 4 000 3 000 2 000 1 000 0 Q106 Q206 Q306 Q406 Q107 Q207

Q307

Q407

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q1 10

EBITDA LTM

NIBD

NIBD/EBITDA (right axis)

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CMD 2010 - Trond Berger - Financials and financial targets

Q2 10

NIBD/EBITA

Financial targets

Dividend policy: 25-40% of cash flow

·

"Schibsted will emphasize a fixed dividend ratio that over time will be in the range 25-40 % per cent of the Group's cash flow per share. In years of weaker cyclical environment Schibsted will seek to pay out a dividend in the higher end of the range provided the Group's capital structure allows this."

5,00 4,50 50 % 45 %

4,00

3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Dividend

40 %

35 % 30 % 25 % 20 % 15 % 10 % 5% 0%

·

Dividend/cash flow (right axis)

Historical dividend adjusted for increased number of shares in 2009

Definition of Cash flow per share: Profit (loss) before taxes + depreciation and amortisation +/- net changes in pensions +/- income from associated companies ­ taxes payable) / Average number of shares

20 CMD 2010 - Trond Berger - Financials and financial targets

Share buy backs

·

Schibsted holds approx 4.7 million treasury shares

· 4.3% of total number of shares

·

·

2010 Annual general meeting extended an authorization to buy back in total 10% of total number of shares Buybacks may be considered to adjust the capital structure of the group

21

CMD 2010 - Trond Berger - Financials and financial targets

Key elements in Articles of Association

· · · ·

Protect editorial freedom

Negative control with ¼ of shares

No shareholder can own or vote for more than 30% of shares Shareholders owning 25% or more has the right to appoint one member of the Board of directors

22

CMD 2010 - Trond Berger - Financials and financial targets

The Tinius Trust

· ·

The Tinius Trust controls 27.1% of the shares through a "golden share" in Blommenholm Industrier AS Managed by a board of trustees

· Chairman Ole Jacob Sunde (also chairman of Schibsted) · John A. Rein (lawyer) · Per Egil Hegge (former editor in Aftenposten) · Each have appointed their own personal successor

·

Will work to ensure that Schibsted remains a media group characterized by free, independent editorial staffs, credibility and quality and with long-term, healthy financial developments

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CMD 2010 - Trond Berger - Financials and financial targets

Summary

·

New financial targets show Schibsted's ambitions in terms of growth, profitability and balance sheet structure

·

Solid financial basis

· · Good underlying cash flow Repayment of debt and getting back to normal dividend level prioritized

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CMD 2010 - Trond Berger - Financials and financial targets

Tittel Shaping the media of tomorrow. Undertittel Today.

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