1. No category

Enhance and Expand: A Recipe for Success
Justin Saks
Emma Browne
Craig Schleicher
Shreya Oswal
Value Proposition
Value Proposition
Objective
Critical Issues
Objective
Enhance
Expand
Recommendation
Implementation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Value Proposition
Value Proposition
Objective
Critical Issues
Objective
Enhance
Expand
Recommendation
Implementation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
1. Attractive to Investors
2. Attractive to Employees
3. Being More Attractive than the Alternatives
Value Proposition
Value Proposition
Objective
Critical Issues
Objective
Critical Issues
Enhance
Expand
Recommendation
Implementation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Global Financial
Crisis
Need to be
Market leader
Fast-Moving
Industry
Value Proposition
Value Proposition
Objective
Critical Issues
Objective
Critical Issues
Enhance
Expand
Recommendation
Implementation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Global Financial
Crisis
1. Every Step is
Scrutinized
2. Increased
Volatility
3. Opportunity
is still there
Need to be
Market leader
Fast-Moving
Industry
Value Proposition
Value Proposition
Objective
Critical Issues
Enhance
Expand
Recommendation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Objective
Critical Issues
Implementation
Global Financial
Crisis
Need to be
Market leader
1.
1. Would rather
be #1 in one
market than
#2 in three or
four markets
2.
3.
Every Step is
Scrutinized
Increased
Volatility
Opportunity is
still there
Fast-Moving
Industry
Value Proposition
Value Proposition
Objective
Critical Issues
Enhance
Expand
Recommendation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Objective
Critical Issues
Implementation
Global Financial
Crisis
Need to be
Market leader
1.
1.
2.
3.
Every Step is
Scrutinized
Increased
Volatility
Opportunity is
still there
Would rather
be #1 in one
market then #2
in three or four
markets
Fast-Moving
Industry
1. Industry is
constantly
changing
2. Need to react
quickly
3. Want to be
as close to
first mover
as possible
Value Proposition
Value Proposition
Objective
Critical Issues
Enhance
Recommendation
Enhance
Objective
Critical Issues
Recommendation
Expand
Implementation
Conclusion
Achieved Value
Expand
Build an attractive future for Schibsted Classified Media
Global Financial
Crisis
Need to be
Market leader
“Two E Strategy: Enhance”
1. Move towards a Hybrid
business model
2. Ensure that we are
equipped for long term
sustainable success
Fast-Moving
Industry
“Two E Strategy: Expand”
Value Proposition
Value Proposition
Objective
Critical Issues
Enhance
Expand
Recommendation
Achieved Value
Build an attractive future for Schibsted Classified Media
Objective
Recommendation
Conclusion
Expand
Enhance
Critical Issues
Implementation
Global Financial
Crisis
Need to be
Market leader
“Two E Strategy: Enhance”
1.
2.
Move towards a Hybrid
business model
Ensure that we are equipped
for long term sustainable
success
Fast-Moving
Industry
“Two E Strategy: Expand”
1. Avoid the “Flight to Safety”
mentality
2. Take advantage of the times and
position SCM as a first mover
3. Expand aggressively and quickly
Value Proposition
Value Proposition
Objective
Critical Issues
Objective
Critical Issues
Recommendation
Benefits
Enhance
Expand
Recommendation
Implementation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Global Financial
Crisis
Need to be
Market leader
Fast-Moving
Industry
“Two E Strategy: Enhance”
“Two E Strategy: Expand”
Leadership Position Across
Markets
Sustainable Competitive
Position
Value Proposition
Value Proposition
Objective
Critical Issues
Objective
Critical Issues
Recommendation
Benefits
Enhance
Expand
Recommendation
Implementation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Global Financial
Crisis
Need to be
Market leader
“Two E Strategy: Enhance”
Fast-Moving
Industry
“Two E Strategy: Expand”
NPV of NOK~$410mm or USD$56.11mm
Break Even of Less Than A Year
Agenda
Value Proposition
Enhance
Justin Saks
Emma Browne
Craig Schleicher
Shreya Oswal
Emma Browne
Justin Saks
Expand
Implementation
Introduction
Situation Analysis
Enhance Brand
Expand into New Markets
Implementation
Financials/Conclusion
Conclusion
Market Growth Changes
Enhance
Value Proposition
The Market
Our Position
Decision Tree
Expand
Implementation
Conclusion
Solution
Previous Market Growth
Transition from Print Media
•Classified media is now primarily online
European Classifieds Market
Size (Billions of €)
Rapid Growth in Market
€2.50
•Advertising expenditure for online classifieds
alone in Europe expected to rise to 2.5 B
Euros by 2012
€2.25
€2.00
Lower
competitive
threat due to
high growth
€1.75
2009
2010
2011
2012
Market Growth Changes
Enhance
Value Proposition
The Market
Our Position
Decision Tree
Expand
Implementation
Conclusion
Solution
Previous Market Growth
Threat in Economic Crisis
Transition from Print Media
Discourages Consumer Spending
•Classified media is now primarily online
Rapid Growth in Market
•Online advertising expenditure for online
classifieds alone in Europe expected to rise to
2.5 B Euros by 2012
•Consumers spend less, including on classified
websites due to economic uncertainty
Limits Growth with Current Strategy
•Necessity to innovate strategy to draw in
new consumers
Increases Competitive Environment
Major growth
from market
growth
•Same companies competing for fewer
customers
SCM Current Presence: All Markets
Value Proposition
The Market
Our Position
Enhance
Decision Tree
Expand
Solution
Implementation
Conclusion
European Presence: Multi-Brand Leaders
Value Proposition
The Market
Our Position
Enhance
Decision Tree
Expand
Solution
Implementation
Conclusion
European Presence: Single-Brand Exposure
Value Proposition
The Market
Our Position
Enhance
Decision Tree
Expand
Solution
Implementation
Conclusion
Decision Tree
Value Proposition
The Market
Our Position
Enhance
Expand
Decision Tree
M&A?
Organic Growth?
M&A
How To
Maximize
Attractiveness
Solution
Organic
Growth
Roll Outs
Roll Outs?
Implementation
Conclusion
Decision Tree
Value Proposition
The Market
Our Position
Enhance
Expand
Decision Tree
M&A?
Organic Growth?
Organic
Growth
Roll Outs
Conclusion
Solution
Roll Outs?
Merger
Not a good company fit; difficult
to coordinate; limits upside
Acquisition
Expensive; risky; not best idea in
these times
Cost
Effectiveness
Not long term enough, falls victim
to flight to safety
Brand
Expansion
Encourages customer usage;
sustainable in the long term
Blocket or
Infojobs
Model
Easier and faster to implement;
low capital expenditure
Finn Model
Very expensive and slow to
implement; risky
M&A
How To
Maximize
Attractiveness
Implementation
Decision Tree
Value Proposition
The Market
Our Position
Enhance
Decision Tree
Expand
Organic
Growth
Roll Outs
Conclusion
Solution
Merger
Not a good company fit; difficult
to coordinate; limits upside
Acquisition
Expensive; risky; not best idea in
these times
Cost
Effectiveness
Not long term enough, falls victim
to flight to safety
Brand
Expansion
Initiative 1: Implement Hybrid
Strategy in Current Leadership
Markets
M&A
How To
Maximize
Attractiveness
Implementation
Blocket
or Infojobs
Model
Finn Model
Initiative 2: Expand revenues by
immediately rolling out easier
models internationally
Very expensive and slow to
implement; risky
Current Business Models
Enhance
Value Proposition
The Hybrid Model
In Theory
Country
Spain
Sweden
Norway
AOL Case Study
Expand
Details
Implementation
Conclusion
Theoretical Roll Out
Finn vs. Hybrid
General
Cars
Real Estate
Jobs
New Business Model
Enhance
Value Proposition
The Hybrid Model
In Theory
Country
AOL Case Study
Expand
Details
Implementation
Conclusion
Theoretical Roll Out
Finn vs. Hybrid
General
Cars
Real Estate
Jobs
Coches
Casas
Empleos
Bilar
Hus
Jobb
Biler
Hus
Jobb
Spain
Sweden
Norway
New Business Model
Enhance
Value Proposition
The Hybrid Model
In Theory
Country
Spain
Sweden
Norway
AOL Case Study
Expand
Details
Implementation
Conclusion
Theoretical Roll Out
Finn vs. Hybrid
General
Cars
Real Estate
Hybrid model
incorporates
Coches
Casas
specialized sites
with greater
Bilar
Hus
functionality than
current Finn
model
Biler
Hus
Jobs
Empleos
Jobb
Jobb
AOL Classifieds Case Study
Enhance
Value Proposition
The Hybrid Model
AOL Case Study
Expand
Details
Implementation
Conclusion
Theoretical Roll Out
Key Takeaways
Similar Approach
AOL Classifieds
•USA Launch: 23 February 2009
•Expanding to Canada and UK by end
of week
•Access to 40 million listings through
Oodle partnership
•Interconnected with AOL Jobs, Autos,
and Real Estate
Horizontal breadth with depth in fullfunction vertical segments
No Immediate Threat
Oodle aggregation only available in UK,
US, Canada…AOL not major player in
Europe
Need for Speed
Must get to market before other
companies can
Hybrid Model
Enhance
Value Proposition
The Hybrid Model
Expand
AOL Case Study
Implementation
Details
Structure
Structure
INTEGRATED
Single login for all product categories to
improve ease of use
BROAD PRESENCE
Horizontal coverage of all product
categories within general marketplace
FULL FUNCTIONALITY
Improved functionality within key
vertical categories including autos, real
estate, and jobs
Conclusion
Theoretical Roll Out
Benefits
Example
Revenue Sources
Hybrid Model
Enhance
Value Proposition
The Hybrid Model
Expand
AOL Case Study
Implementation
Details
Structure
Conclusion
Theoretical Roll Out
Benefits
Example
Revenue Sources
Structure
Benefits
INTEGRATED
Powerful Brand Name
Single login for all product categories to
improve ease of use
BROAD PRESENCE
Horizontal coverage of all product
categories within general marketplace
FULL FUNCTIONALITY
Improved functionality within key
vertical categories including autos, real
estate, and jobs
•All marketing focused on single brand
•Leverage credibility across categories
Expanded Customer Base
•Customers come for one category but see
them all
•Potential to increase time on site per viewer
Tailored To Consumer Preferences
•Only provides expert services when needed
•Takes best of both worlds from previous
business models
Hybrid Model
Enhance
Value Proposition
The Hybrid Model
Expand
AOL Case Study
Implementation
Details
Structure
Conclusion
Theoretical Roll Out
Benefits
Example
Revenue Sources
Structure
Benefits
INTEGRATED
Powerful Brand Name
Single login for all product categories to
improve ease of use
•All marketing focused on single site
•Can build a strong reputation for community
Hybrid Platform Combines
Expanded Customer Base
BROAD PRESENCE
Functionality of Multiple
Sites
•Customers come for one category but see
them all
Horizontal coverageInto
of all product
A
Single
Strong
Brand
categories within general marketplace
•Potential to increase time on site per viewer
FULL FUNCTIONALITY
Improved functionality within key
vertical categories including autos, real
estate, and jobs
Tailored To Consumer Preferences
•Replicates successful functionality of
individual sites by only providing additional
expertise when necessary
Site Design Mock-Up
Enhance
Value Proposition
The Hybrid Model
Expand
AOL Case Study
Details
Structure
www.URL.xx
www.URL.xx
Implementation
Conclusion
Theoretical Roll Out
Benefits
Example
Revenue Sources
Site Design Mock-Up
Value Proposition
The Hybrid Model
Enhance
Expand
AOL Case Study
Implementation
Details
Structure
Full-Service
Portals
www.
URL.xx
www.URL.xx
Simple Lists
Conclusion
Theoretical Roll Out
Benefits
Example
Revenue Sources
Revenue Sources
Value Proposition
Enhance
The Hybrid Model
Expand
AOL Case Study
Details
Structure
Specific Categories
•Free Search
Full-Service
Portals
•Listing Fee
•Paid Advertising
General Merchandise
•Free Search
•Free Listing
•Paid Advertising
Implementation
Simple Lists
Conclusion
Theoretical Roll Out
Benefits
Example
Revenue Sources
Revenue Sources
Value Proposition
Enhance
The Hybrid Model
Expand
AOL Case Study
Details
Structure
Specific Categories
Implementation
Conclusion
Theoretical Roll Out
Benefits
Example
Revenue Sources
Benefits
•Free Search
•Listing Fee
•Paid Advertising
Encourages Consumer Use
•Free postings in most categories increase
willingness to use site
Monetization When Possible
•Listing fees in specialized categories where
listers are willing to pay
General Merchandise
•Free Search
•Free Listing
•Paid Advertising
Sustainable for Long-Term
•Don’t have to worry about being undercut
by free competitors
•Large community of free users will attract
paid listers in premium categories
Roll-Out Process
Value Proposition
The Hybrid Model
Enhance
AOL Case Study
Expand
Details
Implementation
Theoretical Roll Out
Timing
Existing Market
Step Include content
from existing
1 specialty websites
all
Step Re-brand
websites under one
2 name per country
Develop additional
Step specialty content as
3 needed
Risks
Conclusion
Roll-Out Process
Value Proposition
The Hybrid Model
Enhance
AOL Case Study
Expand
Details
Implementation
Theoretical Roll Out
Timing
Existing Market
Step Include content
from existing
1 specialty websites
all
Step Re-brand
websites under one
2 name per country
Develop additional
Step specialty content as
3 needed
Risks
Greenfield Roll-Out
Step Introduce
1 blocket-model
Heavy
Step advertising to
2 gain audience
Develop specialty
Step content within
3 blocket-style site
Conclusion
Roll-Out Process
Value Proposition
The Hybrid Model
Enhance
Expand
AOL Case Study
Details
Implementation
Theoretical Roll Out
Timing
Existing Market
Step Include content
from existing
1 verticals websites
all
Step Re-brand
websites under one
2 name per country
Risks
Greenfield Roll-Out
Step Introduce
1 blocket-model
Both new and
existing markets
Heavy
Step
experience
advertising to
2 gain audience
phased transitions
Develop additional
Step vertical content as
3 needed
Develop verticals
Step within blocket3 style site
Conclusion
Risk Analysis
Enhance
Value Proposition
The Hybrid Model
AOL Case Study
Expand
Implementation
Details
Conclusion
Theoretical Roll Out
Timing
Risks
RISK
MITIGATION
CONTINGENCY
1
Brand Confusion
Emphasize Different Page
Layouts, i.e. “Cars by Finn”
Increase focus on sub-branding;
Category specific
advertisements
2
Consumer Resistance to OneShop-Fits-All
Focus on additional services and
convenience
Encourage consumers to go
straight to category sites;
De-emphasize portal
3
Excessive Costs
Phased development;
Completed loan restructuring
Scale back development
schedule; Only complete Phase
1 in each locations
4
Logistics
Leveraging best practices;
Phased roll-out
Bring in project management
experts to assist with training
Factors Influencing Evaluation
Value Proposition
Enhance
The Potential Opportunities
Expand
The Criteria
Implementation
Prime Opportunities
Conclusion
Markets to Enter
Top Line Evaluation of 50 European Countries
In Depth Evaluation of 24 Countries
Factors Influencing Evaluation
Value Proposition
Enhance
Expand
The Potential Opportunities
Generalist
Vehicles
The Criteria
Travel
Implementation
Prime Opportunities
Jobs
Conclusion
Markets to Enter
General
Indicators
Factors that indicate consumers’ willingness to “buy” our product
Indicates strong chance of success in those markets
A way to prioritize expansion into different countries
Resources are limited in current financial crisis
Factors Influencing Evaluation
Enhance
Value Proposition
Expand
The Criteria
The Potential Opportunities
Generalist
Generalist
Implementation
Vehicles
Vehicles
Travel
Prime Opportunities
Travel
Jobs
Jobs
Conclusion
Markets to Enter
General Indicators
General
Indicators
Consumer expenditure on
clothing - € mn
Consumer expenditure on
clothing materials - € mn
Consumer expenditure on
garments - € mn
Consumer expenditure on
other articles of clothing
and clothing accessories - €
mn
Consumer expenditure on
cleaning, repair and hire of
clothing - € mn
Consumer expenditure on
footwear - € mn
Consumer expenditure on
household goods and
services - € mn
Consumer expenditure on
household goods and
services - € mn
Consumer expenditure on
audio-visual, &
information processing
equipment - € mn
Consumer expenditure on
other major durables for
recreation and culture - €
mn
Consumer expenditure on
other recreational items
and equipment, gardens
and pets - € mn
Consumer expenditure on
recreational and cultural
services - € mn
Consumer expenditure on
newspapers, magazines,
books and stationery - €
mn
Consumer expenditure on
package holidays - € mn
Consumer expenditure on
miscellaneous goods and
services - € mn
Factors Influencing Evaluation
Value Proposition
Enhance
Expand
The Criteria
The Potential Opportunities
Generalist
Generalist
Vehicles
Implementation
Vehicles
Travel
Prime Opportunities
Travel
Jobs
Jobs
Consumer expenditure on
purchase of cars,
motorcycles and other
vehicles - € mn
Conclusion
Markets to Enter
General Indicators
General
Indicators
Consumer expenditure on
buses, coaches and taxis € mn
Factors Influencing Evaluation
Enhance
Value Proposition
Expand
The Criteria
The Potential Opportunities
Generalist
Generalist
Vehicles
Implementation
Vehicles
Travel
Prime Opportunities
Travel
Jobs
Conclusion
Markets to Enter
Jobs
General Indicators
General
Indicators
Consumer expenditure
on transport services - €
mn
Consumer expenditure
on rail travel - € mn
Consumer expenditure
on air travel - € mn
Consumer expenditure
on other travel - € mn
Consumer expenditure
on hotels and catering - €
mn
Consumer expenditure
on communications - €
mn
Factors Influencing Evaluation
Value Proposition
Enhance
Expand
The Criteria
The Potential Opportunities
Generalist
Generalist
Vehicles
Implementation
Vehicles
Travel
Population aged
15-19: January 1st
Population aged
20-24: January 1st
Population aged
25-29: January 1st
Population aged
30-34: January 1st
Population aged
35-39: January 1st
Population aged
40-44: January 1st
Population aged
45-49: January 1st
Economically active
population
Unemployed
population
Prime Opportunities
Travel
Jobs
Jobs
Conclusion
Markets to Enter
General Indicators
General
Indicators
Factors Influencing Evaluation
Enhance
Value Proposition
Expand
The Criteria
The Potential Opportunities
Generalist
Generalist
Vehicles
Implementation
Vehicles
Travel
Prime Opportunities
Travel
Jobs
Jobs
Conclusion
Markets to Enter
General Indicators
General
Indicators
Annual disposable
income - € mn
Personal computers
(PCs) in use - '000
Internet users - '000
Internet subscribers
- '000
Dial-up Internet
subscribers - '000
Broadband Internet
subscribers - '000
Capital investment in
telecommunications
- € mn
Total
telecommunications
revenues - € mn
Population: national
estimates at January
1st - '000
Households by
tenure [home
owner]
Households by type
of dwelling [house]
Households by type
of dwelling
[apartment]
Consumer
expenditure by
resident households
- € mn
Gross national
income (GNI) - € mn
Households by
tenure [rented]
Choosing Attractive Markets to Enter
Value Proposition
Enhance
Expand
The Potential Opportunities
Ideal
Netherlands
Finland
Switzerland
Russia
Turkey
Greece
Ukraine
Poland
Internet Sales
Sales Growth
The Criteria
Implementation
Prime Opportunities
Consumer Sentiment
Conclusion
Markets to Enter
Fragmentation
Choosing Attractive Markets to Enter
Value Proposition
Enhance
Expand
The Potential Opportunities
Ideal
Netherlands
Finland
Switzerland
Russia
Turkey
Greece
Ukraine
Poland
Internet Sales
Sales Growth
The Criteria
Implementation
Prime Opportunities
Consumer Sentiment
Conclusion
Markets to Enter
Fragmentation
Choosing Attractive Markets to Enter
Value Proposition
Enhance
Expand
The Potential Opportunities
Ideal
Netherlands
Finland
Switzerland
Russia
Turkey
Greece
Ukraine
Poland
Internet Sales
Sales Growth
The Criteria
Implementation
Prime Opportunities
Consumer Sentiment
Conclusion
Markets to Enter
Fragmentation
Choosing Attractive Markets to Enter
Value Proposition
Enhance
Expand
The Potential Opportunities
Ideal
Netherlands
Finland
Switzerland
Russia
Turkey
Greece
Ukraine
Poland
Internet Sales
Sales Growth
The Criteria
Implementation
Prime Opportunities
Consumer Sentiment
Conclusion
Markets to Enter
Fragmentation
Choosing Attractive Markets to Enter
Value Proposition
Enhance
Expand
The Potential Opportunities
Ideal
Internet Sales
Sales Growth
The Criteria
Implementation
Prime Opportunities
Consumer Sentiment
Conclusion
Markets to Enter
Fragmentation
Netherlands
1
Finland
2
Switzerland
3
Russia
2
Turkey
1
Greece
2
Ukraine
3
Poland
3
Three Phases of Expansion Into New Markets
Value Proposition
Enhance
The Potential Opportunities
Expand
The Criteria
Implementation
Conclusion
Prime Opportunities
Markets to Enter
Where
Phase One: Most Attractive
Phase Two: Attractive
Phase Three: Becoming Attractive
How
Implementing a Hybrid Model
Value Proposition
Enhance
The Potential Opportunities
Expand
The Criteria
Implementation
Prime Opportunities
Conclusion
Markets to Enter
Where
Step 1: Enter with a
Blocket or Infojobs Model
• Allows quicker and more cost
effective entry
• Can use profits for next phases
of expansion
How
Implementing a Hybrid: Step 2
Value Proposition
Enhance
The Potential Opportunities
Expand
The Criteria
Implementation
Prime Opportunities
Conclusion
Markets to Enter
Where
Step 1: Enter with a
Blocket or Infojobs
Model
• Allows quicker and more
cost effective entry
• Can use profits for next
phases of expansion
Step 2: Add Vertical
Components to Model
• Increase traffic to website
• Build credibility in key areas:
jobs, vehicles, & real estate
How
Implementing a Hybrid: Step 3
Value Proposition
Enhance
The Potential Opportunities
Expand
Implementation
The Criteria
Prime Opportunities
Conclusion
Markets to Enter
Where
Step 1: Enter with a
Blocket or Infojobs
Model
• Allows quicker and more
cost effective entry
• Can use profits for next
phases of expansion
Step 2: Add Vertical
Components to InfoJobs
Model
• Increase traffic to website
• Build credibility in key areas:
jobs, vehicles, & real estate
How
Step 3: Integrate Vertical &
Horizontal Services
• Enhance user experience
• Become one-stop shop for
consumers
• Solidify market leader position
Achieved Value from Hybrid Model
Value Proposition
Enhance
The Potential Opportunities
Expand
Implementation
The Criteria
Prime Opportunities
Conclusion
Markets to Enter
Where
Step 1: Enter with a
Blocket or Infojobs
Model
• Allows quicker and more
cost effective entry
• Can use profits for next
phases of expansion
Step 2: Add Vertical
Components to InfoJobs
Model
• Increase traffic to website
• Build credibility in key
areas: jobs, vehicles, & real
estate
How
Step 3: Integrate Vertical &
Horizontal Services
• Enhance user experience
• Become one-stop shop for
consumers
• Solidify market leader position
Cross category synergies
Increased number of unique users
Increased number of page views
Increased revenue per user
Logistics and HR Implementation
Value Proposition
Enhance
Expand
Logistics
Hire personnel
in each new
country division
Project
Manager
Marketing
Director
Senior
Developer
Senior
Developer
Marketing
Implementation
Financials
Conclusion
Timeline
Logistics and HR Implementation
Value Proposition
Enhance
Expand
Logistics
Marketing
Hire personnel
in each new
country division
Project
Manager
Marketing
Director
Senior
Developer
Inform SCM
Headquarters of
best practices in
market
Senior
Developer
Implementation
Financials
Conclusion
Timeline
Logistics and HR Implementation
Value Proposition
Enhance
Expand
Logistics
Marketing
Marketing
Director
Senior
Developer
Financials
Conclusion
Timeline
Spread
knowledge and
best practices to
new and existing
markets
Hire personnel
in each new
country division
Project
Manager
Implementation
Inform SCM
Headquarters of
best practices in
market
Senior
Developer
Logistics and HR Implementation
Value Proposition
Enhance
Expand
Logistics
Hire personnel
in each new
country division
Project
Manager
Marketing
Director
Senior
Developer
Marketing
Implementation
Financials
New country
divisions can add to
overall success of
company through
Inform SCM
spreading
Headquarters ofglobal
best practices in
learning
market
Senior
Developer
Conclusion
Timeline
Spread
knowledge and
best practices to
new and existing
markets
Marketing Implementation
Value Proposition
Enhance
Expand
Logistics
Marketing
Comparable
marketing • Localized by country
marketing director
budget to • Large percent of initial
previous
launch budget
rollouts
Cross-brand • Purchase confirmation
e-mails with embedded
viral
advertisements
advertising • Promote cross-brand traffic
campaign
on website
Implementation
Financials
Conclusion
Timeline
$100,000 Initial
Marketing Budget
Fits in with hybrid model to
leverage horizontal products
Marketing Implementation
Value Proposition
Enhance
Expand
Logistics
Partnerships with
online newspapers
Marketing
50%
Shared
Rev.
Financials
• Use linked interface from their classifieds
• Additional source for revenue streams
• Push more traffic towards our broad site
SCM: Charge newspapers to link to
co-branded classified page
Increased
Online
Shoppers
for Ad
Posters
Implementation
Exposure
to Users in
SCM’s New
Markets
Newspapers: Give readers opportunity
to post on national classified page
Conclusion
Timeline
Marketing Implementation
Value Proposition
Enhance
Expand
Logistics
Partnerships with
online newspapers
Marketing
50%
Shared
Rev.
Financials
Conclusion
Timeline
• Use linked interface from their classifieds
• Additional source for revenue streams
• Push more traffic towards our broad site
SCM: Charge newspapers to link to
co-branded classified page
Increased
Online
Shoppers
for Ad
Posters
Implementation
Exposure
to Users in
SCM’s New
Markets
Newspapers: Give readers opportunity
to post on national classified page
Potential Clients in Initial New Markets
Largest Media
Group in NL; No
Online Classifieds
Most widely
circulated newspaper
in Turkey; No Online
Classifieds
Financial Implications
Value Proposition
Enhance
Expand
Logistics
Implementation
Marketing
Financials
Enhance Financials
FCFF From Project
2009E
2010E
2011E
2012E
$202,732,240
$247,131,148
$284,200,820
$326,830,943
(300,000)
506,831
709,563
916,393
(900,000)
1,235,656
864,959
1,200,615
(600,000)
710,502
994,703
1,105,205
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
3
(254,421)
(420,966)
(165,000)
(300,000)
(300,000)
1
(84,807)
(140,322)
(55,000)
(100,000)
(100,000)
817,077
1,143,908
1,960,986
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
15,580,400
15,094,600
0
0
0
0
0
0
1,916,389
1,856,636
0
0
0
0
0
0
2,812,767
17,917,460
17,358,790
3,226,000
34,214,800
5,180,700
0
0
0
2,203,848
2,135,131
264,532
2,805,614
424,817
0
0
0
6,393,555
20,605,079
19,962,609
3,709,900
39,347,020
5,957,805
2,623,500
0
0
2,534,425
2,455,401
304,212
3,226,456
488,540
215,127
0
0
8,744,031
23,695,841
22,957,000
4,266,385
45,249,073
6,851,476
3,017,025
13,392,000
7,486,000
2,914,588
2,823,711
349,844
3,710,424
561,821
247,396
549,072
306,926
10,503,524
$3,729,160
$7,594,170
$9,849,236
$12,464,510
Timeline
Expand Financials
Football Field
Key Assumptions - Base Case
Transforming Web Dev.
I1, P1 Transformations
I1, P2 Transformations
I1, P3 Transformations
I1, P1 Marketing Synergies
I1, P2 Marketing Synergies
I1, P3 Marketing Synergies
I1, P1 Sales Synergies
I1, P2 Sales Synergies
I1, P3 Sales Synergies
Development Roll out
Project Manger
Cost per Sr. Developer
Marketing Director
Marketing Budget
Internet Mkt. Growth
Aggressive Market Capture
Safe Market Capture
Conservative Market Capture
Revenue Per User
$300,000
1.0
3.0
2.0
0.25%
0.50%
0.25%
0.35%
0.35%
0.35%
$100,000
($84,807)
($70,161)
($55,000)
($100,000)
15.0%
30.0%
20.0%
10.0%
$0.41
Project Valuation
WACC
EBITDA Exit
Existing SCM Operating Profit (1)
Transforming Existing Businesses
Web Development per Transform
Synergies from Marketing
Synergies from Sales
Web Development Initiative
Expansion into new business market
Costs
Number of Rollouts
Project Manager
Senior Developers 2x
Marketing Director
Web Development
Marketing Budget
Revenue
Netherlands Total Subscribers
Turkey Total Subscribers
Finland Total Subscribers
Russia Total Subscribers
Switzerland Total Subscribers
Greece Total Subscribers
Poland Total Subscribers
Ukraine Total Subscribers
Netherlands Revenue
Turkey Total Revenue
Finland Total Revenue
Russia Total Revenue
Switzerland Revenue
Greece Total Revenue
Poland Total Revenue
Ukraine Total Revenue
Expansion Initiative
Conclusion
3.0x
3.5x
4.0x
4.5x
5.0x
9.94%
$51.22
$55.48
$59.75
$64.02
$68.28
10.94%
$49.66
$53.78
$57.89
$62.01
$66.12
11.94%
$48.17
$52.14
$56.11
$60.08
$64.05
12.94%
$46.74
$50.57
$54.40
$58.23
$62.06
13.94%
$45.37
$49.06
$52.76
$56.46
$60.16
Financial Implications
Enhance
Value Proposition
Expand
Logistics
Implementation
Marketing
Financials
Enhance Financials
(1)
Existing SCM Operating Profit
Transforming Existing Businesses
Web Development per Transform
Synergies from Marketing
Synergies from Sales
Hybrid Initiative
Expansion into new business market
Costs
Number of Rollouts
Project Manager
Senior Developers 2x
Marketing Director
Web Development
Marketing Budget
Revenue
Netherlands Total Subscribers
Turkey Total Subscribers
Finland Total Subscribers
Russia Total Subscribers
Switzerland Total Subscribers
Greece Total Subscribers
Poland Total Subscribers
Ukraine Total Subscribers
Netherlands Revenue
Turkey Total Revenue
Finland Total Revenue
Russia Total Revenue
Switzerland Revenue
Greece Total Revenue
Poland Total Revenue
Ukraine Total Revenue
Expansion Initiative
FCFF From Project
2009E
2010E
2011E
2012E
$202,732,240
$247,131,148
$284,200,820
$326,830,943
(300,000)
506,831
709,563
916,393
(900,000)
1,235,656
864,959
1,200,615
(600,000)
710,502
994,703
1,105,205
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
3
(254,421)
(420,966)
(165,000)
(300,000)
(300,000)
1
(84,807)
(140,322)
(55,000)
(100,000)
(100,000)
817,077
1,143,908
1,960,986
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
15,580,400
15,094,600
0
0
0
0
0
0
1,916,389
1,856,636
0
0
0
0
0
0
2,812,767
17,917,460
17,358,790
3,226,000
34,214,800
5,180,700
0
0
0
2,203,848
2,135,131
264,532
2,805,614
424,817
0
0
0
6,393,555
20,605,079
19,962,609
3,709,900
39,347,020
5,957,805
2,623,500
0
0
2,534,425
2,455,401
304,212
3,226,456
488,540
215,127
0
0
8,744,031
23,695,841
22,957,000
4,266,385
45,249,073
6,851,476
3,017,025
13,392,000
7,486,000
2,914,588
2,823,711
349,844
3,710,424
561,821
247,396
549,072
306,926
10,503,524
$3,729,160
$7,594,170
$9,849,236
$12,464,510
Conclusion
Timeline
Expand Financials
Football Field
Hybrid Initiative
Initial Development Cost
Synergies from Marketing
Synergies from Sales
Financial Implications
Enhance
Value Proposition
Expand
Logistics
Implementation
Marketing
Financials
Enhance Financials
(1)
Existing SCM Operating Profit
Transforming Existing Businesses
Web Development per Transform
Synergies from Marketing
Synergies from Sales
Hybrid Initiative
Expansion into new business market
Costs
Number of Rollouts
Project Manager
Senior Developers 2x
Marketing Director
Web Development
Marketing Budget
Revenue
Netherlands Total Subscribers
Turkey Total Subscribers
Finland Total Subscribers
Russia Total Subscribers
Switzerland Total Subscribers
Greece Total Subscribers
Poland Total Subscribers
Ukraine Total Subscribers
Netherlands Revenue
Turkey Total Revenue
Finland Total Revenue
Russia Total Revenue
Switzerland Revenue
Greece Total Revenue
Poland Total Revenue
Ukraine Total Revenue
Expansion Initiative
FCFF From Project
2009E
2010E
2011E
2012E
$202,732,240
$247,131,148
$284,200,820
$326,830,943
(300,000)
506,831
709,563
916,393
(900,000)
1,235,656
864,959
1,200,615
(600,000)
710,502
994,703
1,105,205
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
3
(254,421)
(420,966)
(165,000)
(300,000)
(300,000)
1
(84,807)
(140,322)
(55,000)
(100,000)
(100,000)
817,077
1,143,908
1,960,986
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
15,580,400
15,094,600
0
0
0
0
0
0
1,916,389
1,856,636
0
0
0
0
0
0
2,812,767
17,917,460
17,358,790
3,226,000
34,214,800
5,180,700
0
0
0
2,203,848
2,135,131
264,532
2,805,614
424,817
0
0
0
6,393,555
20,605,079
19,962,609
3,709,900
39,347,020
5,957,805
2,623,500
0
0
2,534,425
2,455,401
304,212
3,226,456
488,540
215,127
0
0
8,744,031
23,695,841
22,957,000
4,266,385
45,249,073
6,851,476
3,017,025
13,392,000
7,486,000
2,914,588
2,823,711
349,844
3,710,424
561,821
247,396
549,072
306,926
10,503,524
$3,729,160
$7,594,170
$9,849,236
$12,464,510
Conclusion
Timeline
Expand Financials
Football Field
New Market Expansion
Chosen upon 50 different criteria
Team Cost:
1 IT Manager
2 Senior Developer
1 Marketing Director
Marketing Budget
Web Development Cost
% of Market Captured
Financial Implications
Value Proposition
Enhance
Expand
Logistics
Implementation
Marketing
Financials
Enhance Financials
$95.00
Conclusion
Timeline
Expand Financials
$92.87
$85.00
$78.96
$75.00
$65.00
$60.16
$55.00
$46.87
$51.22
$45.00
$35.00
$39.59
Conservative Case
Base Case
Aggressive Case
Football Field
Financial Implications
Value Proposition
Enhance
Expand
Logistics
Implementation
Marketing
Financials
Enhance Financials
$95.00
Conclusion
Timeline
Expand Financials
Football Field
$92.87
Average
$86.57
$85.00
$78.96
$75.00
$65.00
$60.16
$56.11
$55.00
$46.87
$45.00
$35.00
Average
Average
$51.22
$43.57
$39.59
Conservative Case
WACC: 11.94%
Terminal Exit Multiple: 4.0x
Revenue/user: $0.35
Aggressive Capture: 25%
Conservative Capture: 20%
Conservative Capture: 15%
Avg. Synergies Realized: 0.44%
Internet Market Growth: 10%
Base Case
WACC: 11.94%
Terminal Exit Multiple: 4.0x
Revenue/user: $0.41
Aggressive Capture: 30%
Conservative Capture: 20%
Conservative Capture: 10%
Avg. Synergies Realized: 0.49%
Internet Market Growth: 15%
Aggressive Case
WACC: 11.94%
Terminal Exit Multiple: 4.0x
Revenue/user: $0.50
Aggressive Capture: 35%
Conservative Capture: 25%
Conservative Capture: 20%
Avg. Synergies Realized: 0.53%
Internet Market Growth: 20%
Financial Implications
Value Proposition
Enhance
Expand
Logistics
Implementation
Marketing
Financials
Enhance Financials
Conclusion
Timeline
Expand Financials
$95.00
Football Field
$92.87
Average
$86.57
$85.00
$75.00
$65.00
$55.00
Four Year
Implementation Yields
a Net Present Value
$56.11of
$60.16
$46.87
$45.00
$35.00
Average
$78.96
Average
$51.22
$43.57
$39.59
$56.11 M or
410 M NOK
Conservative Case
WACC: 11.94%
Terminal Exit Multiple: 4.0x
Revenue/user: $0.35
Aggressive Capture: 25%
Conservative Capture: 20%
Conservative Capture: 15%
Avg. Synergies Realized: 0.44%
Internet Market Growth: 10%
Base Case
WACC: 11.94%
Terminal Exit Multiple: 4.0x
Revenue/user: $0.41
Aggressive Capture: 30%
Conservative Capture: 20%
Conservative Capture: 10%
Avg. Synergies Realized: 0.49%
Internet Market Growth: 15%
Aggressive Case
WACC: 11.94%
Terminal Exit Multiple: 4.0x
Revenue/user: $0.50
Aggressive Capture: 35%
Conservative Capture: 25%
Conservative Capture: 20%
Avg. Synergies Realized: 0.53%
Internet Market Growth: 20%
Implementation Timeline
Value Proposition
Enhance
Expand
Logistics
Implementation
Marketing
Financials
Wave 1 Expand
Wave 1
Contract,Expand
Develop, Install
2009
P1 Expansion
P2 Expansion
1. Introduce blocket
variations in 3 phased
process
2. Newspaper Marketing
Partnership
Implementation
P3 Expansion
Marketing
2010
Conclusion
Timeline
Wave 2 Enhance
2011
2012
Wave 3 Evaluate
2013
Implementation Timeline
Value Proposition
Enhance
Expand
Logistics
Implementation
Marketing
Financials
Wave 1 Expand
Wave 2
Contract,Enhance
Develop, Install
2009
P1 Expansion
P2 Expansion
1. Develop Hybrid
Platform
2. Roll out in Primary
Markets
3. Continue to Roll out
in other markets
P3 Expansion
Marketing
Develop
Primary Roll-out
Continued Roll Out
2010
Conclusion
Timeline
Wave 2 Enhance
2011
2012
Wave 3 Evaluate
2013
Implementation Timeline
Value Proposition
Enhance
Expand
Logistics
Implementation
Marketing
Financials
Wave 1 Expand
Wave 3
Review Develop,
and Monitor
Contract,
Install
2009
P1 Expansion
P2 Expansion
1. Constantly Review
and Evaluate
Performance
2. Continue to realize
scale and leverage
best practice
P3 Expansion
Marketing
Develop
Primary Roll-out
Continued Roll Out
Evaluate
Best Practice
2010
Conclusion
Timeline
Wave 2 Enhance
2011
2012
Wave 3 Evaluate
2013
Value Proposition
Value Proposition
Objective
Critical Issues
Objective
Critical Issues
Recommendation
Benefits
Enhance
Expand
Recommendation
Implementation
Conclusion
Achieved Value
Build an attractive future for Schibsted Classified Media
Global Financial
Crisis
Need to be
Market leader
“Two E Strategy: Enhance”
Fast-Moving
Industry
“Two E Strategy: Expand”
NPV of NOK~$410mm or USD$58mm
Break Even of Less Than A Year
Enhance and Expand: A Recipe for Success
Justin Saks
Emma Browne
Craig Schleicher
Shreya Oswal
Presentation Index
1. Value Proposition
2. Agenda
3. Market Growth Changes
4. SCM Current Presence
5. Decision Tree
6. Current Business Model
7. New Business Model
8. AOL Classifieds Study
9. Hybrid Model
10.Site Design Mock-Up
11.Revenue Sources
12. Roll Out Process
13.Risk Analysis
14. Factors Influencing Evaluation
15. Choosing Attractive Markets to
Enter
16.Three Phases of Expansion Into
New Markets
17.Implementing a Hybrid Model
18.Achieved Value from Hybrid
Model
19.Logistics and HR Implementation
20.Marketing Implementation
21.Financial Implications
22.Implementation Timeline
Appendix Index
1.
2.
3.
4.
5.
6.
Growth Strategies
13. Newspaper Partnerships
Exit Strategy
Examples
Value Proposition
14. Market Size & Growth For
WACC
Expansion Targets
Base Case Detail
15. Competition in Netherlands &
Base Case Assumption and
Turkey
Output
16. Finn vs. Hybrid
7. Aggressive Case Detail
17. Why not mobile (yet)?
8. Aggressive Case Assumption 18. Why not acquisitions?
and Output
19. How our strategy addresses
9. Conservative Case Detail
financial crisis
10. Conservative Case Assumption 20. Finn Jobs vs. Hybrid Jobs
and Output
21. AOL Classifieds
11. Valuation Outputs
22. Breakdown of Target Market
12. Decision Tree
23. Potential Vertical Businesses
24. Markets to Keep Watching
Growth Strategies
Value Proposition
Total
Growth
Enhance
Expand
Implementation
Portfolio
Momentum
Growth achieved through
general market growth
Mergers
&
Acquisitions
Net revenue growth from
acquisitions or divestitures
Share
Gain
Revenue growth from
gaining market shares
Conclusion
Covered by
“Expand”
Strategy
Covered by
“Enhance”
Strategy
Exit Strategy
Value Proposition
Enhance
Expand
Implementation
Conclusion
Problem
with
Market
Sell off
sites
Problem
with
Hybrid
Platform
Convert
to
separate
sites
Value Proposition
Value Proposition
Objective
Critical Issues
Recommendation
Benefits
Enhance
Expand
Implementation
Conclusion
Build an attractive future for Schibsted Classified Media
Global Financial
Crisis
Need to be #1
Fast-Moving
Industry
Hybrid Platform
Phased Global Rollout
Leadership Position Across
Markets
Sustainable Competitive
Position
WACC
Value Proposition
Enhance
Expand
Implementation
Norway
Risk Free Rate
Market Risk Premium
Weighting
Beta
(1)
Spain
France
4.500%
7.100%
3.700%
8.800%
4.700%
6.400%
4.100%
7.000%
36.000%
44.000%
15.000%
5.000%
1.500
S&P 5 Year Return (2)
Market risk premium
CAPM (Current Beta)
12.0%
7.50%
15.750%
Cost of Debt (3)
Debt/Equity
E/V
D/V
Tax Rate
10.000%
0.535
0.612
0.328
30%
WACC
Sweden
Conclusion
11.94%
Source
1: Nataxis Research Report
2: Standard and Poors
3: Based off of cost of current 6.1% credit facility + 4% premium for current market conditions
Base Case Detail
Enhance
Value Proposition
Existing SCM Operating Profit (1)
Transforming Existing Businesses
Web Development per Transform
Synergies from Marketing
Synergies from Sales
Hybrid Initiative
Expansion into new business market
Costs
Number of Rollouts
Project Manager
Senior Developers 2x
Marketing Director
Web Development
Marketing Budget
Revenue
Netherlands Total Subscribers
Turkey Total Subscribers
Finland Total Subscribers
Russia Total Subscribers
Switzerland Total Subscribers
Greece Total Subscribers
Poland Total Subscribers
Ukraine Total Subscribers
Netherlands Revenue
Turkey Total Revenue
Finland Total Revenue
Russia Total Revenue
Switzerland Revenue
Greece Total Revenue
Poland Total Revenue
Ukraine Total Revenue
Expansion Initiative
FCFF From Project
Expand
Implementation
2009E
2010E
2011E
2012E
$202,732,240
$247,131,148
$284,200,820
$326,830,943
(300,000)
506,831
709,563
916,393
(900,000)
1,235,656
864,959
1,200,615
(600,000)
710,502
994,703
1,105,205
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
3
(254,421)
(420,966)
(165,000)
(300,000)
(300,000)
1
(84,807)
(140,322)
(55,000)
(100,000)
(100,000)
817,077
1,143,908
1,960,986
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
15,580,400
15,094,600
0
0
0
0
0
0
1,916,389
1,856,636
0
0
0
0
0
0
2,812,767
17,917,460
17,358,790
3,226,000
34,214,800
5,180,700
0
0
0
2,203,848
2,135,131
264,532
2,805,614
424,817
0
0
0
6,393,555
20,605,079
19,962,609
3,709,900
39,347,020
5,957,805
2,623,500
0
0
2,534,425
2,455,401
304,212
3,226,456
488,540
215,127
0
0
8,744,031
23,695,841
22,957,000
4,266,385
45,249,073
6,851,476
3,017,025
13,392,000
7,486,000
2,914,588
2,823,711
349,844
3,710,424
561,821
247,396
549,072
306,926
10,503,524
$3,729,160
$7,594,170
$9,849,236
$12,464,510
Conclusion
Base Case Assumption and Output
Enhance
Value Proposition
Expand
Implementation
Conclusion
Key Assumptions - Base Case
$300,000
1.0
3.0
2.0
0.25%
0.50%
0.25%
0.35%
0.35%
0.35%
$100,000
($84,807)
($70,161)
($55,000)
($100,000)
15.0%
30.0%
20.0%
10.0%
$0.41
Project Valuation - Base
WACC
EBITDA Exit
Transforming Web Dev.
I1, P1 Transformations
I1, P2 Transformations
I1, P3 Transformations
I1, P1 Marketing Synergies
I1, P2 Marketing Synergies
I1, P3 Marketing Synergies
I1, P1 Sales Synergies
I1, P2 Sales Synergies
I1, P3 Sales Synergies
Development Roll out
Project Manger
Cost per Sr. Developer
Marketing Director
Marketing Budget
Internet Mkt. Growth
Aggressive Market Capture
Safe Market Capture
Conservative Market Capture
Revenue Per User
WACC
3.0x
3.5x
4.0x
4.5x
5.0x
9.94%
$51.22
$55.48
$59.75
$64.02
$68.28
10.94%
$49.66
$53.78
$57.89
$62.01
$66.12
11.94%
$48.17
$52.14
$56.11
$60.08
$64.05
12.94%
$46.74
$50.57
$54.40
$58.23
$62.06
13.94%
$45.37
$49.06
$52.76
$56.46
$60.16
Aggressive Case Detail
Value Proposition
Enhance
Existing SCM Operating Profit (1)
Transforming Existing Businesses
Web Development per Transform
Synergies from Marketing
Synergies from Sales
Hybrid Initiative
Expansion into new business market
Costs
Number of Rollouts
Project Manager
Senior Developers 2x
Marketing Director
Web Development
Marketing Budget
Revenue
Netherlands Total Subscribers
Turkey Total Subscribers
Finland Total Subscribers
Russia Total Subscribers
Switzerland Total Subscribers
Greece Total Subscribers
Poland Total Subscribers
Ukraine Total Subscribers
Netherlands Revenue
Turkey Total Revenue
Finland Total Revenue
Russia Total Revenue
Switzerland Revenue
Greece Total Revenue
Poland Total Revenue
Ukraine Total Revenue
Expansion Initiative
FCFF From Project
Expand
Implementation
2009E
2010E
2011E
2012E
$202,732,240
$247,131,148
$284,200,820
$326,830,943
(300,000)
709,563
912,295
1,321,858
(900,000)
1,482,787
1,112,090
1,694,877
(600,000)
994,703
1,278,904
1,673,607
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
3
(254,421)
(420,966)
(165,000)
(300,000)
(300,000)
1
(84,807)
(140,322)
(55,000)
(100,000)
(100,000)
1,143,908
1,470,739
2,614,648
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
15,580,400
15,094,600
0
0
0
0
0
0
2,726,570
2,641,555
0
0
0
0
0
0
4,407,867
17,917,460
17,358,790
3,226,000
34,214,800
5,180,700
0
0
0
3,135,556
3,037,788
403,250
4,276,850
647,588
0
0
0
10,060,644
20,605,079
19,962,609
3,709,900
39,347,020
5,957,805
2,623,500
0
0
3,605,889
3,493,456
463,738
4,918,378
744,726
327,938
0
0
13,073,994
23,695,841
22,957,000
4,266,385
45,249,073
6,851,476
3,017,025
13,392,000
7,486,000
4,146,772
4,017,475
533,298
5,656,134
856,434
377,128
1,339,200
748,600
16,714,784
$5,729,725
$11,755,521
$14,747,601
$19,329,431
Conclusion
Aggressive Case Assumption and Output
Enhance
Value Proposition
Expand
Implementation
Conclusion
Key Assumptions - Base Case
$300,000
1.0
3.0
2.0
0.35%
0.60%
0.35%
0.45%
0.45%
0.45%
$100,000
($84,807)
($70,161)
($55,000)
($100,000)
20.0%
35.0%
25.0%
20.0%
$0.50
Project Valuation - Aggressive
WACC
EBITDA Exit
Transforming Web Dev.
I1, P1 Transformations
I1, P2 Transformations
I1, P3 Transformations
I1, P1 Marketing Synergies
I1, P2 Marketing Synergies
I1, P3 Marketing Synergies
I1, P1 Sales Synergies
I1, P2 Sales Synergies
I1, P3 Sales Synergies
Development Roll out
Project Manger
Cost per Sr. Developer
Marketing Director
Marketing Budget
Internet Mkt. Growth
Aggressive Market Capture
Safe Market Capture
Conservative Market Capture
Revenue Per User
WACC
3.0x
3.5x
4.0x
4.5x
5.0x
9.94%
10.94%
$78.96
$76.56
$85.58
$82.94
$92.20
$89.32
$98.81
$95.71
$105.43 $102.09
11.94%
$74.26
$80.42
$86.57
$92.73
$98.88
12.94%
$72.05
$77.99
$83.93
$89.87
$95.81
13.94%
$69.93
$75.67
$81.40
$87.14
$92.87
Conservative Case Detail
Value Proposition
Enhance
Expand
(1)
Existing SCM Operating Profit
Transforming Existing Businesses
Web Development per Transform
Synergies from Marketing
Synergies from Sales
Hybrid Initiative
Expansion into new business market
Costs
Number of Rollouts
Project Manager
Senior Developers 2x
Marketing Director
Web Development
Marketing Budget
Revenue
Netherlands Total Subscribers
Turkey Total Subscribers
Finland Total Subscribers
Russia Total Subscribers
Switzerland Total Subscribers
Greece Total Subscribers
Poland Total Subscribers
Ukraine Total Subscribers
Netherlands Revenue
Turkey Total Revenue
Finland Total Revenue
Russia Total Revenue
Switzerland Revenue
Greece Total Revenue
Poland Total Revenue
Ukraine Total Revenue
Expansion Initiative
FCFF From Project
Implementation
2009E
2010E
2011E
2012E
$202,732,240
$247,131,148
$284,200,820
$326,830,943
(300,000)
405,464
506,831
612,295
(900,000)
988,525
617,828
706,352
(600,000)
710,502
710,502
821,004
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
3
(254,421)
(420,966)
(165,000)
(300,000)
(300,000)
1
(84,807)
(140,322)
(55,000)
(100,000)
(100,000)
817,077
817,077
1,634,155
2
(169,614)
(280,644)
(110,000)
(200,000)
(200,000)
15,580,400
15,094,600
0
0
0
0
0
0
1,363,285
1,320,778
0
0
0
0
0
0
1,723,805
17,917,460
17,358,790
3,226,000
34,214,800
5,180,700
0
0
0
1,567,778
1,518,894
225,820
2,395,036
362,649
0
0
0
4,629,790
20,605,079
19,962,609
3,709,900
39,347,020
5,957,805
2,623,500
0
0
1,802,944
1,746,728
259,693
2,754,291
417,046
183,645
0
0
6,684,219
23,695,841
22,957,000
4,266,385
45,249,073
6,851,476
3,017,025
13,392,000
7,486,000
2,073,386
2,008,737
298,647
3,167,435
479,603
211,192
703,080
393,015
8,374,838
$2,336,100
$5,336,142
$7,505,224
$10,008,992
Conclusion
Conservative Case Assumption and Output
Enhance
Value Proposition
Expand
Implementation
Key Assumptions - Base Case
$300,000
1.0
3.0
2.0
0.20%
0.40%
0.25%
0.25%
0.25%
0.25%
$100,000
($84,807)
($70,161)
($55,000)
($100,000)
10.0%
25.0%
20.0%
15.0%
$0.35
WACC
Project Valuation - Conservative
WACC
EBITDA Exit
Transforming Web Dev.
I1, P1 Transformations
I1, P2 Transformations
I1, P3 Transformations
I1, P1 Marketing Synergies
I1, P2 Marketing Synergies
I1, P3 Marketing Synergies
I1, P1 Sales Synergies
I1, P2 Sales Synergies
I1, P3 Sales Synergies
Development Roll out
Project Manger
Cost per Sr. Developer
Marketing Director
Marketing Budget
Internet Mkt. Growth
Aggressive Market Capture
Safe Market Capture
Conservative Market Capture
Revenue Per User
Conclusion
3.0x
3.5x
4.0x
4.5x
5.0x
9.94%
$39.59
$43.02
$46.45
$49.87
$53.30
10.94%
$38.37
$41.67
$44.98
$48.28
$51.59
11.94%
$37.20
$40.38
$43.57
$46.76
$49.95
12.94%
$36.07
$39.15
$42.22
$45.30
$48.38
13.94%
$34.99
$37.96
$40.93
$43.90
$46.87
Valuation Outputs
Value Proposition
Enhance
Expand
Implementation
Conclusion
11.94%
$74.26
$80.42
$86.57
$92.73
$98.88
12.94%
$72.05
$77.99
$83.93
$89.87
$95.81
13.94%
$69.93
$75.67
$81.40
$87.14
$92.87
Project Valuation - Base
WACC
3.0x
3.5x
4.0x
4.5x
5.0x
9.94%
$51.22
$55.48
$59.75
$64.02
$68.28
10.94%
$49.66
$53.78
$57.89
$62.01
$66.12
11.94%
$48.17
$52.14
$56.11
$60.08
$64.05
12.94%
$46.74
$50.57
$54.40
$58.23
$62.06
13.94%
$45.37
$49.06
$52.76
$56.46
$60.16
Project Valuation - Conservative
WACC
EBITDA Exit
3.0x
3.5x
4.0x
4.5x
5.0x
9.94%
10.94%
$78.96
$76.56
$85.58
$82.94
$92.20
$89.32
$98.81
$95.71
$105.43 $102.09
EBITDA Exit
EBITDA Exit
Project Valuation - Aggressive
WACC
3.0x
3.5x
4.0x
4.5x
5.0x
9.94%
$39.59
$43.02
$46.45
$49.87
$53.30
10.94%
$38.37
$41.67
$44.98
$48.28
$51.59
11.94%
$37.20
$40.38
$43.57
$46.76
$49.95
12.94%
$36.07
$39.15
$42.22
$45.30
$48.38
13.94%
$34.99
$37.96
$40.93
$43.90
$46.87
Decision Tree
Value Proposition
Enhance
M&A
How To
Maximize
Attractiveness
Expand
Implementation
Conclusion
Merger or
Joint Venture
Able to succeed alone; difficult to
coordinate; limits upside
Acquisition
Expensive; no brand coordination;
risky; not SCW’s talent
Initiatives
contribute Does
to dual
Increase
not reach new customers;
growth
strategy : limits brand synergies
Brand Depth
Organic
Growth
Roll Outs
Increase
Initiative 1: Implement Hybrid
Share
Gain
Brand Breadth
Strategy in Current Leadership
And
Markets
Blocket Model
Portfolio
Momentum
Initiative 2: Expand revenues by
immediately rolling out easier
Infojobs
models internationally
Model
Finn Model
Very expensive and slow to
implement; risky
Newspaper Partnerships Examples
Value Proposition
Enhance
Sun-Times / Monster
•Announced Jan. 5, 2009
•Includes 70 newspapers in
Midwestern United States
•Co-branded website providing job
classifieds on Monster platform
Expand
Implementation
Conclusion
Yahoo! HotJobs
•264 newspapers have linked jobswanted sites to HotJobs
•Provides greater traffic to both
parties
•Revenue split between HotJobs and
Yahoo!
Market Size & Growth For Expansion Targets
Value Proposition
Enhance
Expand
Implementation
Conclusion
Country
Market Size
Percentage Growth (2008)
Why Enter?
Netherlands
$ 1.7 billion
43%
Finland
$ 0.529 billion
20%
Switzerland
$ 1.6 billion
12%
Russia
$ 54.4 billion
31%
Turkey
$ 1.3 billion
22%
Greece
$ 0.343 billion
19%
Ukraine
$ 1.7 billion
29%
High Growth Markets
Not Overly Mature
markets
Gaining a strong
position in these
countries reinforces
dominant position in
Europe
Poland
$3.7 billion
22%
Competition in Netherlands & Turkey
Value Proposition
Enhance
Expand
3 main competitors
• Kugli.com
• Hurriyet.com
• Craigslist.com
Either don’t know the target market very well
or don’t have the scale and experience of a
larger company
• We can provide an enhanced user experience
These are countries where we have a strong
chance of being a market leader
Implementation
Conclusion
Finn vs. Hybrid
Value Proposition
The Hybrid Model
In Theory
Enhance
Expand
AOL Case Study
Details
Implementation
Conclusion
Theoretical Roll Out
Finn vs. Hybrid
Biler
Hus
Jobb
Finn vs. Hybrid
Value Proposition
The Hybrid Model
In Theory
Enhance
Expand
AOL Case Study
Details
Implementation
Conclusion
Theoretical Roll Out
Finn vs. Hybrid
Biler
Hus
Jobb
Forums
Videos
Expert Advice
News
Forums
Videos
Expert Advice
News
Forums
Videos
Expert Advice
News
Why not mobile (yet)?
Value Proposition
Enhance
Expand
Implementation
Lack of consumer demand
Heavy reliance on SMS for mobile apps
Low iPhone penetration in Europe (8%)
Already leader in mobile news, so can afford to wait and see
Conclusion
Why not acquisitions?
Value Proposition
Enhance
Expand
Implementation
Corporate strength in training and development
Economic environment not conducive
No need to pay premium when we can grow organically
Potential for integration issues
Conclusion
How our strategy addresses financial crisis
Value Proposition
Enhance
Expand
Phased
Expenditures
Consolidation
of Strong
Positions
Emphasis on
Loyal
Customers
Protection Against
Downturn
Implementation
Conclusion
Finn Jobs vs. Hybrid Jobs
Value Proposition
Enhance
Expand
Implementation
Conclusion
Finn Jobs
Hybrid Jobs
Job Listings
Job Listings
CV Prep Advice
Forums
Financial News
Templates
Interview Training
Newsletters
Downloadable Models
AOL Classifieds
Value Proposition
Enhance
Expand
Implementation
Conclusion
Breakdown of Target Market
Value Proposition
Enhance
Expand
Implementation
Conclusion
Generalist
Automotive
Real Estate
Jobs
Age
18-80
16-60
21-50
18-60
Gender
Male & Female
Male & Female
Male & Female Male & Female
Income
Low to Middle
Income
Middle to High
Income
Middle to High
Income
All Incomes
Psychographic
Internet savvy,
adventurous
consumer
Budget
conscious yet
adventurous
consumer
Careful buyer
who does
extensive
research
Educated,
ambitious
consumer
Potential Vertical Businesses
Value Proposition
Enhance
Expand
Dating &
Personals
Implementation
Services
Travel
Way to expand consumer base
& market share in the future
Conclusion
Markets to Keep Watching
Value Proposition
Enhance
Expand
Implementation
Conclusion
Enter These Markets If… These Factors Increase
Bulgaria
Czech Republic
Hungary
Romania
Slovakia
Internet usage
Computer usage
Online spending
Consumer
disposable income
Enhance and Expand: A Recipe for Success
Justin Saks
Emma Browne
Craig Schleicher
Shreya Oswal