North Media A/S

North Media A/SInvestor Presentation

14 September 2021 ABG Sundal Collier Investor Day Seminar

Agenda

North Media in brief

Shareholder value creation

Group highlights Q2 2021

Business review by segment

Financial highlights H1 2021

Strategy 2021-23

Full-year guidance

Q&A

Kåre Stausø WighGroup Executive Director & CFO North Media A/S

Henrik LøvigCEO, North Media Online A/S

Forward-looking statementsThis presentation contains statements about the future, including expectations for 2021, which are inherently subject to risks and uncertainties that could cause actual results to differ materially from those expected. Please see the section on risk and risk management on pages 44-45 of our 2020 Annual Report.

14 September 2021 ABG Sundal Collier Investor Day Seminar2

A focused value and growth company

Last Mile Digital Services

• Annual revenue growth ≥20% • Increasing earnings • Scalability• Attractive, predictable earnings

Job seekers

Retail, other advertisersand local newspapers

Letting agents and andlords Employers

Consumers in a broad sense Households

Distributorsand homecare

minetilbud

Home seekers

Nationwide distribution of ~1.3 billion

leaflets, local newspapersand direct mail

Mediation of >100,000

rented housing

Dissemination of >33,000job postings

Digital access solutions>10 million

number of doorsopened annually

Digital platform with>100 million

views of leaflets and catalogs

• Market leading position


Dividend per share (DKK, payout year) Total payout to shareholders (DKKm)

0 1.53

45 5 5 5

2017 2018 2019 2020 2021 2022E 2023E 2024E 2017 2018 2019 2020 2021 2022E 2023E 2024EDividend Buyback

90.7

-5.9 28.4

55.4

101.0

90

110

130

150

170

30-12-20 30-01-21 02-03-21 02-04-21 03-05-21 03-06-21 04-07-21 04-08-21 04-09-21

Serie1 Serie2

Share price performance YTD (indexed)

Shareholder value creation

+58%

+45%

Capital resources (DKKm)

281,1 327,2484,7

738,9 771,1

2017 2018 2019 2020 H1 2021

Small Cap CPH North Media


1.144,9 1.045,6 1.045,4

253,6 258,9

2018 2019 2020 Q2 2020 Q2 2021

Group revenue (DKKm)Q2 Group highlightsOverall results as expected – guidance upgraded

DKK 259m revenue • Up 2% following markets have normalised after COVID-19

lockdowns

DKK 68m EBIT• Margin up 4pp to 26.1%, progress in both business areas

DKK 51m net profit, excl. return on securities• Up 9%, mainly due to higher operating earnings

Strategic priorities progressing well

94,0

170,0

240,2

56,1 67,6

2018 2019 2020 Q2 2020 Q2 2021

EBIT (DKKm)

2019 figures restated to reflect effect of discontinued operations

51,7110,1

186,0

46,5 50,5

2018 2019 2020 Q2 2020 Q2 2021

Net profit excl. return on securities (DKKm)


FK Distribution

Highlights

• Revenue up 1%, primarily due to quarterly timing

• Volumes on par with Q2 2020; modest price increases

• Cost savings and ongoing optimisations

• Expansion of contract with Deutsche Post

Household distribution of retail leaflets and local newspapers in Denmark. Digital offer platform.

Quarterly EBIT and EBIT margin

53,959,0 56,8

61,5 62,1

20

25

30

35

0

50

Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

EBIT EBIT margin (%)

%

Quarterly revenue and growth (index)

221,4 228,1 239,0208,8 222,5

80

100

120

0

50

100

150

200

250

Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

Revenue Index

(DKKm) Index

(DKKm)

(DKKm) H1 2021 H1 2020

Revenue 431.3 446.5

EBIT 123.6 117.9


FK Distribution

Market for leaflets is stabilising• Volumes down 4% in the first half-year• Large retailers continue to rely on leaflets to drive customers into stores• Smaller customers reduce volume• Existing agreement with Salling Group extended through 2024

Guidance 2021FK Distribution

Revenue (DKKm)

865 - 880 Interim Report Q1 2021 850 - 870Realised 2020 913.6

EBIT (DKKm)

235 - 245Interim Report Q1 2021 215 - 230Realised 2020 233.7

0

20

40

60

80

100

120

2014 2015 2016 2017 2018 2019 2020 2021 YTD

~4% volume decline in H1 2021

10% volume decline in 2020 due to COVID-19

Long period of ~8% volume decline

Leaflet market development (index)


BoligPortal

Highlights

• Introduction of subscription-based solutions and new freemium platform

• Revenue growth temporarily slowed to 1% in Q2

• Solid margins, despite changes to business Quarterly EBIT and EBIT margin

8,07,1

6,0 5,7

7,7

20

25

30

35

40

0

2

4

6

8

Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

EBIT EBIT margin (%)

%

Quarterly revenue and growth (index)

21,5 21,620,0 20,4 21,7

90

100

110

120

130

140

0

5

10

15

20

25

Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

Revenue Index

(DKKm) Index

(DKKm)

(DKKm) H1 2021 H1 2020

Revenue 42.1 40.7

EBIT 13.4 14.1


BoligPortal– from market place to SaaS business

Guidance 2021BoligPortal

Revenue (DKKm)


EBIT (DKKm)


Four revenue streams

• Advertisement fees from tenants, private and professional landlords

• Offering of unique, local market data on supply and demand, pricing sensitivity and tenant profiles. Subscription-based

• Subscription-based services for administration of real estate portfolio

• Reference fees from service providers when offering services to tenants through BoligPortal platform, e.g., electricity, internet, insurance


Solid backbone for long-term development

• Focus on private employers paying off

• 180% growth in private job advertisements sinceJanuary 2020

• Investments in infrastructure, data platform, and jobs universe

• Financial guidance upgraded due to better-than-expected growth in private job postings and pricing

4,55,2

6,67,6

9,1

-30

-20

-10

0

10

20

30

0

2

4

6

8

10

Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

Revenue EBIT margin (%)

Ofir Quarterly revenue and EBIT margin(DKKm) %

(DKKm) H1 2021 H1 2020

Net revenue 16.7 9.1

EBIT 3.0 -2.0

Guidance at Q2 2021

Revenue (DKKm) 31 - 34

Interim Report Q1 2021 24 - 27

Realised 2020 20.9

EBIT (DKKm) 3 - 5


Realised 2020 -1.9


Bekey

2021 focus areas

• Commercial traction in Stairwells segment –implementing agreement with nemlig.com

• Focus on additional agreements with large propertymanagers in Greater Copenhagen

• Target of 70% stairwells coverage in 2021 changed to 60% in 2021

Digital access solutions to stairwells and private homes, based on proprietary technology platform.

Quarterly revenue and EBIT margin

6,2 5,7

8,9

5,9 5,6

-50

-30

-10

10

0

2

4

6

8

10

Q2 20 Q3 20 Q4 20 Q1 21 Q2 21

Revenue EBIT margin (%)

(DKKm) %

(DKKm) H1 2021 H1 2020

Net revenue 11.5 14.0

EBIT -3.5 -3.3

14 September 202111

Guidance at Q2 2021

Revenue (DKKm) 26 - 30


Realised 2020 28.6

EBIT (DKKm) -7 to -6

Interim Report Q1 2021 -7 to -5

Realised 2020 -6.8

ABG Sundal Collier Investor Day Seminar

Update on Strategy 2021-23Value creation by investing in digital transformation and profitable growth

Digital Services growth and acquisitionsScaling and acquisition of commercially validated activities


FK Distribution

• Expansion of relationship with Deutsche Post

• Exploring potential for packing for upto 2 million households in Germany

BoligPortal

• Roll-out of new SaaS based platform with additional revenue streams

Ofir

• Solid growth in job ads from private employers

• Strengthening of data and research capabilities

Bekey

• Agreements to help build critical mass in the stairwells segment

North Media A/S ambitionsRevenue• ~3% annual organic growth rate• Stable revenue in Last Mile• ~20% annual growth in Digital

Services

EBIT margin• ~24% by 2023 (excl. acquisitions)

Investments/acquisitions• Up to DKK 200m

Dividend• Ambition to pay DKK 5 per share for

each financial year 2021–2023

Development of Last Mile Optimizations, new products, packaging for adjacent markets

Status Q2 2021 Status Q2 2021

Financial guidance 2021

Guidance 2021 for the Group

Revenue (DKKm)

1,015 - 1,035 Interim Report Q1 2021 995-1,025 Annual Report 2020 985-1,025Realised 2020 1,045

EBIT (DKKm)

250 - 265 Interim Report Q1 2021 235 - 255 Annual Report 2020 230 - 255Realised 2020 240


Last Mile (DKKm)Interim Report Q2 2021 (updated)Revenue: 865 - 880EBIT: 235 - 245

Interim Report Q1 2021 Revenue: 850 - 870EBIT: 215 - 230

Annual Report 2020Revenue: 840 - 870EBIT: 210 - 230

Realised 2020Revenue: 913.6EBIT: 233.7

Digital Services (DKKm)Interim Report Q2 2021 (updated)Revenue: 147 - 158EBIT: 25 - 30

Interim Report Q1 2021 Revenue: 145 - 155EBIT: 25 - 30

Annual Report 2020Revenue: 145 - 155EBIT: 25 - 30

Realised 2020Revenue: 131.8EBIT: 18.5

Investment highlights


Good strategic progress towards financial ambitions for 2022-2023

Solid revenue development in H1 and > DKK 1 billion expected for the full year

On track to deliver all time high full year EBIT > DKK 250 million

H1 cash position of DKK ~800 million provides flexibility

Last Mile – Predictable earnings and market stabilization

Attractive shareholder returns - dividend of DKK 5 per share

Digital Services – growth and improving earnings

Questions?

IR contact:CEO Kåre Stausø Wigh T: (+45) 3957 7000E: [email protected] M: (+45) 2565 2145

Thank you for your attention


North Media A/S

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