Schibsted ASA (SCHA/SCHB)

Capital Markets Day 2019 - Two separate growth companies presented - Seite 2

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.