Change and Opportunities in the Digital Transformation

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Change and Opportunities in the Digital Transformation CHANGE AND OPPORTUNITIES IN THE DIGITAL TRANSFORMATION ROLV ERIK RYSSDAL, CEO Eierskapskonferansen, Oslo 9. juni 2015 A HISTORY OF INNOVATIVE DIGITAL GROWTH 1839 VARIOUS INVESTMENTS BY SCHIBSTED GROWTH Schibsted Publishing House 2005 2006 2007 2009 2010 2013 2014 established INTERNATIONAL EXPANSION OF ONLINE CLASSIFIEDS 1996 1966 2003 2006- Schibsted Schibsted Schibsted Christian Schibsted acquires acquires acquires with Family Verdens Gang Aftonbladet Blocket 175 1839 2000 YEARS 2015 1860 1995 1996 2000 2006 2008 2009 2013 2014 2015 Aftenposten Schibsted Nett Tinius Trust Finn.no Schibsted Schibsted Schibsted JV with Schibsted Schibsted is founded founded established launched acquires majority Classified Media Growth Telenor acquires acquires Naspers in Spanish online Founded Established established Milanuncious, operations in classifieds Avito in Morocco, Hungary and sells Anuntis and jobs establishes a JV Romanian and site Infojobs with Naspers Portugal operations 1992 Tinius Nagell-Erichsen, the great-grandson Schibsted Listed on of founder Christian Schibsted, established Oslo Stock the Tinius Trust as the main shareholder in Exchange Schibsted (26.1%). 2 NEW B-SHARE PROVIDES STABLE, LONG-TERM OWNERSHIP AND ENABLES FURTHER GROWTH ■ The Tinius Trust owns 26,1 % of Schibsted Media Group. ■ The share split allow the Tinius Trust to remain in control and at the same time access new capital for growth. ■ Keeps financial flexibility and strength. Oslo børs, 1. juni 2015 3 RAPID TECHNOLOGICAL SHIFTS WITH HUGE IMPACT ON OUR BUSINESS MODELS MOBILE/SOCIAL/PERSONAL ■ Relevant personalized contents ■ Push anywhere, any time ■ Higher technology cost ■ New global platforms WEB ■ Unlimited contents, searchable ■ Immediate delivery, any time ■ Zero marginal cost, PRINT ■ low average cost ■ Physically limited contents ■ Slow delivery ■ High industrial costs ~1995 ~2010 4 BRAKE AND ACCELERATE THE PRINT-TO-WEB SHIFT WAS BRUTAL 400 MNOK Print stillingsrubrikk Aftenposten 350 300 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 6 SAVING COSTS ENABLES NEW GROWTH 7 THE SECRET TO GAIN GROWTH IN SHIFTS: RESOURCE REALLOCATION We have invested over 12bn NOK in our online classifieds business SCM valuation* Accumulated investments in SCM 2006-2014 [million NOK] 14 000 52bn NOK 12 000 10 000 8 000 Acquisitions Organic spending 6 000 4 000 2 000 0 * Barclays SOTP 2006 2007 2008 2009 2010 2011 2012 2013 2014 valuation for SCM Feb-2015. For Note: 2014 organic spending is a forecast based on extrapolating the first three quarters of the year. Acquisitions is based on publicly disclosed events. illustration purpose, only 8 DISRUPTION & INNOVATION BETTER TO DISRUPT THAN BEING DISRUPTED: WE HAVE DARED TO DISRUPT OURSELVES 1998 2000 Spun off Finn as a separate company VG Nett established as a separate company 2010 2013 2014 VG Mobil established as a separate company We acquired Shpock Omni launched in Sweden 10 INVESTING HEAVILY IN TECHNOLOGY AND DATA OSLO HQ STOCKHOLM BARCELONA LONDON 11 ADDING STRENGTH THROUGH ALLIANCES 2013 + 2014: ALLIANCE WITH TELENOR AND NASPERS 13 BUILDING FOR STRENGTH AND FOCUS SCHIBSTED SCHIBSTED PUBLISHING NEW MEDIA GROUP LOCAL OWNERS NORGE SVERIGE 14 KEY TAKE-AWAYS LESSONS LEARNED BE THE DISRUPTOR ■ And organize accordingly DIGITALIZATION ENABLES COMPETITION ■ New, innovative players remove inefficiencies QUICK ADAPTION ■ New competitive scenarios arise fast TRADITIONAL STRATEGIC PLANNING ■ Does not work anymore 16 ORGANISATIONAL CONSEQUENCES FLEXIBILITY ■ Be able to act on change and opportunities ■ Experimentation, testing ■ Speed, little prestige and hierarchy ROBUST & FINANCIALLY SOUND ■ Have the ability to absorb dramatic and unforeseen changes or events BUILD COMPETENCE ■ Always develop the existing workforce. ■ Add new competence (like tech or ADA) 17 LOOKING INTO THE FUTURE THE DIGITAL TRANSFORMATION… ■ It’s here to stay – and it will accelerate ■ Everything will be affected IT’S A GLOBAL GAME ■ Strong international competitors LOGIN BECOMES ESSENTIAL ■ From anonymous to identified web DATA WILL BE KEY ■ Relevant and personalized experiences Source: Mary Meeker’s 2015 Internet Trends Report 18 THE FUTURE IS NOW.
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