Schibsted has a history of innovating to transition to new technologies and business models. Two examples are: 1) Breaking up the newspaper model along dimensions of content, operations, and business models in response to new technologies. 2) Strategically developing online properties to maximize traffic and profit growth, growing local concepts into international successes. Today's challenge is innovating for mobile, as mobile ARPU is lower than desktop. Schibsted aims to innovate consumer and advertiser relationships to sustain growth. Innovation is a core value, and mistakes and cannibalization are accepted to disrupt and conquer new opportunities.

2. ”Something old, something new”
Innovation at Schibsted
Sverre Munck, EVP Schibsted Media Group

3. Agenda
 Brief history Schibsted
Media Group
 2 examples of historic
innovation
 Today's innovation
challenge: the mobile
 Reflections on
innovation

6. Revenue and EBITDA split FY 2011
Revenues EBITDA
NOK and percent NOK and percent
Online Online
share 35 share 55
Media
percent Media percent* Houses
Houses
online
Online online
10 %
classifieds 11%
24%
NOK Media
Houses
NOK
Media 14,378 offline
advertising Online 2,185 Media
Houses
Houses 26 % classifieds
other million 45 % million offline
45 %
9%
Media Media
Houses Houses
single copy subscription
18% 12%
*) Share of EBITDA excluding HQ 6

7. Traditional history
– successful transition to online

8. Two strategic pillars – one more “in the
making”?
MEDIA HOUSES
 Leading positions in print and online editorial
media in Norway, Sweden and international
(Spain, France, Baltics)
ONLINE CLASSIFIEDS
 Global leader in fast growing online
classifieds
ONLINE GROWTH VENTURES*
 New growth initiatives in Digital Media
*Not formally introduced

9. Agenda
 Brief history Schibsted
Media Group
 2 examples of historic
innovation
 Today's innovation
challenge: the mobile
 Reflections on
innovation

10. Innovating newspapers
10

11. Anatomy of a classic newspaper
Paid distribution
Breaking news
Classified ads

12. Breaking up the classic newspaper
model along 3 dimensions
Breaking news Classified ads Paid/Free distribution
12

13. Learnings:
 New technologies make possible – thereby
inevitable – the ”debundling” of legacy integrated
models (content, operations, business models)
 Traditional publishers have traditionally focused
on circulation as proxy for readership and hence
success and importance. This is the wrong
measure
 Focus on your brand and total reach. Be totally
agnostic wrt channel
13

14. Innovating digital traffic
14

15. Strategic development
15

16. Strategic objectives
✓Use our national presence and traffic to secure future
opportunities in the online space.
✓Maximize the use of our network of sites to drive overall traffic
and profit growth.
✓Mature local concepts into international success stories
16

17. Every week
Source: Orvesto Internet, net reach Schibsted Sweden 2010
Aftonbladet, Blocket, Hitta.se, Prisjakt, SvD,, Tasteline, E24, TV.NU
17

18. 18

19. Traffic vs ARPU
19

20. Creating new businesses
20

21. Agenda
 Brief history Schibsted
Media Group
 2 examples of historic
innovation
 Today's innovation
challenge: the mobile
 Reflections on
innovation

22. “The rise of online advertising is as predictable as the decline of ad
revenue in magazines and newspapers, which has been slipping since
2007…
…Although delivering content via mobile devices will generate revenue for
publishers, it won’t be nearly enough to offset the slump in print ads. Spending
on internet ads will surpass that on periodicals in 2013.”
The World in 2013 – Economist

23. Today's innovation challenge: the
mobile
23

24. Christmas eve single day year-on-
year comparison – VG Mobile
2009 2010 2011
Rituals the same, and breaking
news seldom distrupt these

25. Mobile devices seem to have
capped desktop traffic…
Share
of
visits
Share of visits 24th of December to front pages of VG, Desktop, Mobile and
Tablet. Source: Xiti

26. Change in share by access device
has so far been strictly linear…
26

27. …in a linear world, mobile will
overtake desktop in w. 13 2014

28. So what?
ARPU Challenge
20 Minutes France
Readers /
Revenues
2010 ARPU / year
Innovating consumer
month (MEUR) / reader
and advertiser
5M 50 € 10
pa per
relationships to
5M 5 €1
web
secure and sustain
1M 0,5 € 0,5
mobi l e
future growth

29. Worries about mobile ARPU can
move markets…….

30. Consumer-centric
innovation
SINGLE SIGN-ON
1-CLICK PURCHASE
30

31. Advertising centric innovation: what’s in an app?
Monday morning … … Tuesday morning
Tirsdag morgen

32. Agenda
 Brief history Schibsted
Media Group
 2 examples of historic
innovation
 Today's innovation
challenge: the mobile
 Reflections on
innovation

33. One of four core values
WE HAVE INTEGRITY
WE ARE INNOVATIVE
WE ARE A TEAM
WE ARE HERE TO WIN
33

34. Why is innovation key for us?
DINOSAUR – $ 1bn Value
 In our industry, dinosaurs are dead or
dying
 Status quo is not an alternative
WINNER – $ 1bn Value
 Today, new winners come from product
innovation
 Disrupt and conquer, Instagram sold to
Facebook 550 days after inception
34

35. No fear of cannibalization
35

36. No fear of making mistakes
"I have missed more than 9,000 shots in my career. I have
lost almost 300 games. On 26 occasions I have been
entrusted to take the game winning shot, and I missed. And I
have failed over and over and over again in my life. And that
is precisely why I succeed.”
Michael Jordan
36

37. First steps to create group-wide
innovation methodology
Doblin – ”ten types of innovation”
Et praktisk verktøy for å utvide perspektivet i ideskapingsprosessen
Finance Process. Offering Delivery
Business Networking Enabling Core Product Product Service Channel Brand Customer
model process process performance system experience
 Doblin er et USA basert selskap i Monitor Gruppen som har jobbet med
innovasjonsprosesser i ca 30 år
 De har identifisert 10 innovasjonsområder som gir større effekt enn andre
 Det er stor forskjell på hvor innovasjonsvolumet ligger – og hvor det største
potensialet for profitt er
 Viktigste utbytte av modellen:
 Sikre utvidet perspektiv både når en henter inn innsikt og når en skal
utvikle nye ideer
52
37

38. FINN examples of innovation
culture
38

39. Elementary, my dear Watson………..
39

40. As we speak………
40

41. What’s wrong on this picture?

42. There is a lot of room between the legs of the elephants…

44. Lot’s of disruption coming for TV channels
44

45. Adapt or die
– sounds easy, but lot’s of resistance
”It is not the strongest of
the species that
survive, nor the most
intelligent,
but the one most
responsive to change.”
Charles Darwin
45