Vend Marketplaces (VEND) CMD 2024 summary

Strategic transformation and portfolio focus

• Transitioned to a pure-play Marketplaces company by divesting Adevinta shares and News Media, unlocking NOK 25 billion and NOK 6.3 billion respectively, and simplifying the organization and cost structure.

• Shifted from a country-based to a vertical-based operating model, now structured around four verticals: Mobility, Real Estate, Jobs, and Re-commerce, enabling more specialized solutions and operational efficiency.

• Streamlined the portfolio by exiting or planning to exit non-core and non-leadership positions, including Lendo Group, Prisjakt, Mittanbud, and several jobs platforms in Sweden and Finland, while retaining Delivery during the transition.

• Plans to launch a new company name and brand in H1 2025, symbolizing the transformation and aiming to boost internal and external momentum.

• Achieved NOK ~63bn in shareholder value creation over the past 18 months through strategic moves and asset sales.

Financial guidance and operational targets

• Set medium-term financial targets: Mobility and Real Estate aim for 12%-17% revenue growth with EBITDA margins of 55%-60% and 45%-50% respectively; Jobs targets 5%-10% revenue growth and >55% margin; Re-commerce targets >20% revenue growth and positive single-digit margin by 2027.

• OPEX (excluding COGS) targeted to decrease from 65% to 40% of revenue medium term, with absolute OPEX reduction despite inflation and revenue growth.

• CapEx expected to decline from 9% to 5% of revenue as platform consolidation progresses.

• Capital allocation prioritizes progressive annual dividends, share buybacks, selective acquisitions, surplus cash returns, and maintaining a conservative balance sheet.

• Delivery business to be divested over time, with proceeds from asset sales and Adevinta stake enabling further shareholder returns.

Vertical strategies and growth levers

• Mobility: Leading Nordic used car marketplace, focusing on dealer-level packages, value-based pricing, scaling C2B and transactional models, and harmonizing platforms across the Nordics.

• Real Estate: Strong leadership in Norway and Finland, accelerating growth, scaling transactional rental models, and leveraging AI and cross-market synergies.

• Jobs: Market leader in Norway, implementing value-based pricing, audience extension products, deepening candidate relationships, and driving growth through AI-powered innovation.

• Re-commerce: Nordic leader scaling C2C transactional models, leveraging AI for ad creation and customer service, and driving operational efficiency through a unified platform.