Schibsted at a
glance
Message from
the CEO
Board of
Directors'
report
Message from
the Board
Sustainability
report
Corporate
governance
Financial
statements for
the Group
Notes to the
consolidated
financial
statements
Alternative
performance
measures
Financial
statements for
parent
company
Auditor’s
report
Share
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SCHIBSTED ANNUAL REPORT 2021
SCHIBSTED AT A GLANCE
3
Schibsted is a family of strong, well-known consumer brands in digital marketplaces, media,
eCommerce, financial services and technology ventures with a predominantly Nordic presence. In 2021
we welcomed Marketplaces Denmark to our portfolio.
Nordic Marketplaces
Our leading digital marketplaces – Finn
(Norway), Blocket (Sweden), Tori and
Oikotie (Finland), DBA and Bilbasen
(Denmark) – connect millions of buyers
and sellers every month and facilitate
transactions from job offers to real estate, cars, travel,
consumer goods and more. Nordic Marketplaces also includes
adjacent businesses such as Nettbil and Qasa.
News Media
As the largest media group in Scandinavia, our world-class
media houses continue to shape the media landscape of today
– and tomorrow. In Scandinavia, our media
houses such as VG, Aftenposten,
Bergens Tidende, Aftonbladet and Svenska
Dagbladet keep people informed and
updated on important issues in society.
PodMe was our latest member in the
portfolio in 2021.
Distribution & eCommerce
The distribution operations in Norway deliver not only
newspapers but also parcels for businesses and consumers.
Over 80 percent of Helthjem’s door-to-door deliveries are
related to second-hand goods sold through marketplaces such
as Finn and Bookis. With Morgenlevering consumers can have
breakfast delivered to their doorstep.
Financial Services & Ventures
We invest in disruptive, scalable and innovative business
models that create unique value and that aim to become market
leaders. Financial Services consists of a portfolio of companies
in the digital personal finance space, mainly in Norway and
Sweden. Lendo is the key brand in
the portfolio, offering digital
marketplaces for consumer lending.
Ventures consists of a portfolio of
digital companies operating mainly
in Norway and Sweden, such as
Albert (education), Bookis (second-
hand books) and Prisjakt (price
comparison).
Sustainability in Schibsted
Our greatest impact on society and the environment comes
through the use of our services. It's about how we empower users
in their daily lives through quality journalism, our marketplaces,
financial services and our growth companies:
• Empower circular and sustainable consumption.
• Independent and high-quality journalism.
• Empower people to make informed choices.
SCHIBSTED ANNUAL REPORT 2021
MESSAGE FROM THE CEO
4
For Schibsted, 2021 was an extraordinary year, both financially and
strategically. Our financial results were record high and we
delivered both strong growth and profitability. Revenues exceeded
the previous year’s by 11 percent
1
and EBITDA increased by
29 percent. In terms of strategic results, Schibsted broke new
ground in all of our business areas, consolidating the Nordic
classifieds market, introducing new and successful media
products, and adding new and exciting ventures to the company.
On top of our financial and strategic results, we have delivered on
our ambition of empowering people and working towards a society
built on trust and transparency. The horrific war in Ukraine serves
as a reminder of the importance of news media in general, and of
the objective, faithful and oftentimes dangerous reporting that our
media brands provide.
Moreover, Schibsted’s brands and businesses empower people in
a number of ways. In the last quarter alone, we piloted a fully
transactional user experience in Finn Torget that will make circular
consumption easier for everyone. Finn has launched a new product
offering in real estate aimed at improving the user experience for
buyers, sellers and agents alike. We saw PodMe grow more than
expected, and we invested in quality podcast content in Sweden
and Finland. Moreover, we reached millions of readers every day
with quality journalism from all our media houses, covering life and
politics during the COVID-19 pandemic, uncovering the benefits
politicians give themselves, investigating the linkages between
over-the-counter drugs and violence, and even inspiring the
biggest documentary hit on Netflix, as VG did with its investigations
into the “Tinder Swindler”. We introduced a really exciting machine
learning project in Aftonbladet to optimize the number of
newspapers to print and distribute so as to avoid selling out and to
minimize waste. Moreover, we invested in new companies that
both contribute to our total reach and share our values and
principles. Through Helthjem, we delivered 3.6 million parcels in
Q4, making everyday life just a little bit more convenient 3.6 million
times. On top of that, we were named the most attractive
workplace in the industry in Norway, and are seeing good traction
in talent acquisition despite fierce competition.
I say all this because this is where we can see Schibsted’s true
impact on society; the way we empower all groups of stakeholders
every day, from consumers and customers to employees and
partners, owners, society and the planet. Our impact is amplified
when more people find our products and services valuable and
make them part of their lives in ways that change how they act,
consume, and understand the world. Our record financial results
and milestone strategic achievements in 2021 have set us up for
amplifying that impact further.
On 25 June, Adevinta finally completed the acquisition of eBay
Classifieds Group. As a result of the transaction, Schibsted is a
strong financial owner in Adevinta with an ownership share of
33 percent. The value of the retained interest, combined with the
value of the shares distributed to shareholders at the time of the
spin-off, is a strong sign of the significant value creation to
shareholders coming out of Schibsted’s long-term strategic focus
on shaping the global online classifieds industry.
We built Adevinta over a long period of time, and we base our
assessment of its value to us on the company’s long-term growth,
market position and profitability. We remain a committed owner
focusing on shareholder value, and are confident that Adevinta is
well positioned as the largest pure-play classifieds business in the
Western world.
The sector that Schibsted and Adevinta is part of is out of favor in
the financial markets right now, resulting in quite a substantial
negative impact on our share price development since mid 2021.
This does not change the industrial dynamics or business
development in which our portfolio of companies is involved. In
sum, Schibsted has a solid foundation with a strong potential for
further growth and value creation, and will seek to realize that
potential in light of current and future market conditions.
Finally, in light of Ole Jacob Sunde’s decision to step down as
Chairman of the Board, I want to thank Ole Jacob for his
significance and contributions towards Schibsted’s development
and success through more than 20 years. As Chairman, Ole Jacob
has shown a stewardship that has helped steer Schibsted safely
and successfully through vast transitions both in terms of
technology, business and world events. Ole Jacob hands over a
company that is many times stronger, more diverse and better
positioned than it was when he took over as Chair. He has been a
great inspiration and a steady coach for all of us who have had the
privilege to work with him.
Kristin Skogen Lund
CEO of Schibsted
1
On a foreign exchange neutral basis and including pro-forma revenues for Oikotie and Denmark before Schibsted ownership
SCHIBSTED ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
5
Schibsted has navigated through 2021 with strong financial results, clear societal relevance and renewed
commitment to future growth and value creation.
In 2021, Schibsted achieved strong revenue development and
financial results, in a year that was once more marked by the
COVID-19 pandemic. Two years into the pandemic, our businesses
are in good positions and we have proven the relevance of our
services’ to our users, customers and society at large. With the
ongoing war in Ukraine, that relevance is as pronounced as ever.
The year has also delivered new milestone achievements in our
strategic efforts. Within Nordic Marketplaces, Oikotie in Finland is
now fully integrated after the acquisition in the summer of 2020.
Integration of the leading online classifieds businesses DBA and
Bilbasen in Denmark is well under way following the completion of
Adevinta’s acquisition of eBay Classifieds Group in June 2021.
These strategic consolidation efforts strengthen our position as the
Nordic classifieds champion and position us for future growth. We
have further ramped up our efforts within News Media, through
investments in strategic initiatives across our brands with a focus
on content including podcasts. We have made exciting venture
investments with strong value potential and increased our
innovation and transformation efforts in our existing businesses.
To further develop our growth strategy across all business areas,
Schibsted implemented a new organizational model in July,
linking marketplaces with distribution. We have sharpened our
focus on venture investments, paving the way for an even more
ambitious company-wide growth agenda. The new organizational
model builds on Schibsted’s proven foundation, and is all about
matching businesses that can make each other better, while at the
same time giving all our businesses the focus and direction they
need to grow. In addition, we have renewed our commitment to
future growth through a holistic investment strategy. The aim is to
identify additional opportunities for investments, growth and
transformation, potentially broadening Schibsted’s portfolio of
businesses and brands. Geographical focus for such investments
will continue to be the Nordics. They will build on our strong
marketplace and news operations, as well as other categories close
to our core, where we have competitive advantages from our
capabilities, insights and market reach.
Our future growth opportunities will be identified by their ability to
simultaneously contribute to our profits and our purpose.
Schibsted is a family of brands that share a set of values and
principles that guide us whenever we make decisions as a
company, or find ourselves at a crossroads. Our mission is
empowering people in their daily lives. Our vision is contributing to
a society built on trust and transparency. And at the root of our
character we are a fearless force for change. Everything we do as a
company reflects these values and principles. We will continue to
deliver on our values while creating value for all stakeholders. This
will be achieved by providing leading online marketplaces, running
world-class media houses and by creating and investing in digital
services that people find valuable. Our products contribute to our
customers' lives in ways that change how they act, consume, and
understand the world.
Another area which is equally important looking at growth
potential and value creation is Adevinta, which we have built over
a long period of time. As the largest pure-play classifieds business
in the Western world with prominent positions in France and
Germany, Adevinta is well positioned to unlock further growth and
profits based on its strong brands, market positions and
continuous product development, and Schibsted remains as a
committed financial owner focusing on shareholder value.
The Chairman of the Board, Ole Jacob Sunde, has announced his
plan to leave the Board after two decades. After his tenure,
Schibsted is in a thoroughly good position to pursue these growth
opportunities and continue to create value at all levels, and for all
stakeholders. The Board wishes to express its gratitude for the
influence and significance of Ole Jacob’s chairmanship, and for the
wisdom and foresight with which he has helped steer Schibsted.
Further changes to the composition of the Group
In July 2020, Schibsted announced that its subsidiary Adevinta ASA
had signed an agreement to acquire 100 percent of eBay Classified
Group, the global classifieds operations of eBay Inc. The
transaction was completed on 25 June 2021. Under the terms of
the agreement, eBay Inc. received a consideration of
USD 2.5 billion in cash and approximately 540 million shares in
Adevinta, representing an ownership interest of 44.1 percent of the
capital and 33.3 percent of the votes. The share issue of
Adevinta ASA thereby diluted Schibsted’s ownership interest in
Adevinta to 33.1 percent of the capital and 39.5 percent of the votes
at the time of closing of the transaction, resulting in Schibsted
losing control of Adevinta.
As part of Adevinta's acquisition of eBay Classified Group,
Schibsted acquired the Danish operations of eBay Classified Group
(DBA.dk and bilbasen.dk) from Adevinta through the acquisition of
100 percent of the shares in eBay Classifieds Scandinavia ApS.
In June 2021, Schibsted also obtained control over the Swedish
premium podcast company PodMe AB by increasing its ownership
interest from 48 percent to 91 percent through the acquisition of
shares.
Impact of the COVID-19 pandemic on the Group
As in the rest of the world, the COVID-19 pandemic has had a
significant impact on the economies in our markets and in parts of
our business. However, there has been a strong rebound thanks to
large stimulus packages, the gradual reopening of society and an
SCHIBSTED ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
6
acceleration of digital transformation across industries that has
created new possibilities for many of our businesses.
At the beginning of the pandemic the Job verticals in Nordic
Marketplaces and the Travel vertical in Finn saw significant
declines in revenues due to lower volumes. This was true also for
advertising and casual sales in News Media.
During 2021 we have seen a recovery across all markets in Nordic
Marketplaces and News Media, driving strong growth in revenues
and EBITDA compared to 2020.
In the early stages of the pandemic, Schibsted took measures to
maintain its financial flexibility, including the decision to not pay
dividend for 2019 and to refinance a NOK 1 billion bond during
2020. At the end of 2021, Schibsted’s liquidity position is sound.
This was achieved by strong profits and cash generation. In this
context, and in accordance with our dividend policy, the Board has
proposed an ordinary dividend of NOK 2.00 per share for 2021.
Further comments on the Group’s results
Schibsted’s consolidated revenues in 2021 totaled
NOK 14,623 million (NOK 12,908 million)
i
, up 13 percent compared
to last year. Despite the uncertainty and negative effects caused by
the pandemic, all operating segments achieved revenue growth.
The Group’s gross operating profit (EBITDA
ii
) amounted to
NOK 2,740 million (NOK 2,126 million)
i
, equivalent to a growth rate
of 29 percent. Please see information under Comments on the
operating segments below for further details on the Group's
performance in 2021.
Schibsted’s share of profit (loss) from joint ventures and associates
totaled NOK -193 million (NOK -44 million)
i
, which includes
NOK -105 million related to Schibsted's share of Adevinta's result
for the third quarter of 2021 after adjusting for amortization of
excess values. Disregarding the effect of Adevinta the negative
development is explained mainly by increased investments in long-
term growth initiatives in entities included in the Financial Services
& Ventures investment portfolios, and is partly offset by improved
results in our investment in Polaris Media.
Impairment loss in 2021 was NOK -20,119 million (NOK -61 million)
i
.
The current year’s impairment consists mainly of a write-down of
our investment in Adevinta, to reflect the market value of Adevinta
as of 31 December 2021 following the decline in the share price and
the writedown of goodwill in Compricer.
In 2021 the Group’s other income amounted to
NOK 328 million (NOK 146 million)
i
, whereof NOK 100 million is
related to a gain on the sale of Kundkraft which was settled with
shares in Tibber AS and NOK 99 million related to remeasurement
of our investment in eEducation Albert AB. The Group also
recognized a NOK 50 million gain from remeasurement of
previously held equity interests in PodMe during 2021.
Other expenses for 2021 amounted to NOK -171 million
(NOK -237 million)
i
explained mainly by costs related to the
acquisition and integration of Nordic Marketplaces Denmark and a
loss on sale of Let's Deal AB.
Operating profit in 2021 amounted to NOK -18,398 million
(NOK 1,101 million)
i
.
Profit (loss) after taxes from discontinued operations (Adevinta
business) amounted to NOK 59,965 million (NOK -233 million)
i
and
includes a NOK 60 billion gain related to loss of control of Adevinta.
Financial position and cash flow
Net cash flow from operating activities, excluding discontinued
operations, was NOK 2,157 million for the year compared to
NOK 1,292 million in 2020. The increased cash flow is explained by
the increased EBITDA and reduced tax payments. The difference
between operating profit and cash flow from operating activities is
due mainly to depreciation, amortization, impairment, sales gains
without cash effects and taxes paid during the year.
Net cash flow from investing activities excluding discontinued
operations was NOK -4,425 million for the year, compared to
NOK -2,654 million in 2020. Investing activities in 2021 were mainly
related to acquisition of the Danish operations of eBay Classified
Group (DBA.dk and bilbasen.dk) and PodMe, and to product and
technology development across all operating segments. Schibsted
also had a net investment in equity instruments amounting to
NOK -513 million during 2021, including the acquisition of
14.6 percent of the shares in Tibber.
Net cash flow from financing activities, excluding discontinued
operations, was NOK 2,301 million in 2021 compared to
NOK - 498 million in 2020. Financing activities for 2021 were related
mainly to a net increase in interest-bearing loans, payment of lease
liabilities, and payment of dividends to owners of the parent and
non-controlling interests.
In discontinued operations, net cash flow from operating activities,
investing activities and financing activities were NOK 341 million
(NOK 1,110 million)
i
, NOK -1,499 million (NOK -3,455 million)
i
and
NOK -392 million (NOK 3,122 million)
i
respectively.
The carrying amount of the Group’s assets increased by
NOK 15,712 million to NOK 64,189 million during 2021. The increase
was related mainly to remeasurement of the remaining ownership
interest in Adevinta to fair value upon completion of Adevinta's
acquisition of eBay Classified Group, offset by the subsequent
impairment at year end.
The Group’s equity ratio was 79 percent at the end of 2021,
compared to 33 percent at the end of 2020.
Schibsted has a well-diversified loan portfolio with loans from the
Norwegian bond market, a group of relationship banks and the
Nordic Investment Bank.
During the year, a bond of NOK 600 million was repaid at maturity,
and a new bond of NOK 1,000 million was successfully issued.
A bridge loan facility was drawn on at the closing of the acquisition
of DBA and Bilbasen in Denmark, but was partly repaid during the
year and amounted to NOK 2,800 million at 31 December 2021.
The EUR 300 million revolving credit facility was also refinanced
during the year, with a term of five years and two one-year
SCHIBSTED ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
7
extension options. The new facility has not been drawn on, and
secures a strong liquidity buffer going forward.
The cash balance at the end of December 2021 was
NOK 1,108 million giving a net interest-bearing debt of
NOK 5,758 million. Including the undrawn facility, the liquidity
reserve amounts to NOK 4,105 million.
Comments on the operating segments
Unless otherwise stated, all percentages in this section are based
on amounts in NOK.
Nordic Marketplaces
Nordic Marketplaces delivered an operating revenue growth of
31 percent (and a growth of 17 percent when adjusted for foreign
exchange and new acquisitions in 2020 and 2021) and an EBITDA
margin of 43 percent. The revenue growth was driven by the
acquisition of the Danish operations of eBay Classified Group
(DBA.dk and bilbasen.dk) and a very favorable development in the
Job verticals throughout the year, though offset slightly by a less
favorable foreign exchange rate. Nordic Marketplaces increased its
variable and fixed costs as a measure to sustain the positive
revenue development in the future, increasing both personnel and
marketing expenses to position themselves for further growth and
value creation.
Marketplaces Norway
The operating revenues for Marketplaces Norway increased by
29 percent in 2021. The bounce back effect on the Job vertical was
very strong for Finn in 2021, where new and upsell products and
increased volumes contributed to a 75 percent revenue growth. All
other verticals also experienced a healthy comeback in 2021 except
the Real estate vertical, which experienced a slight decline due to
lower advertising volumes in a less overheated market compared
to 2020. Display advertising revenues increased in 2021 due to
stronger conditions for the advertising segment. High revenue
growth throughout the year contributed to an EBITDA increase of
5 percentage points, resulting in a substantial EBITDA margin
improvement to 53 percent.
Marketplaces Sweden
The bounce back effect was weaker for Marketplaces Sweden,
which ended 2021 with an operating revenue growth of 6 percent
in local currency. The operating revenue growth can be attributed
to a strong development in the Job vertical, driven by positive price
effects, increased advertising volumes and upsell products. The
Motor vertical delivered mid-single digit growth in 2021, driven by
positive price effects at the beginning of the year and offset by
negative volume effects by the end of the year. Operating revenue
growth was also offset by the decline in Blocket’s Generalist
vertical. Display advertising revenues grew slightly in 2021 due to
favorable market conditions. The EBITDA margin in Marketplaces
Sweden in local currency decreased by 1 percentage point
compared to the previous year, resulting in an EBITDA margin of
42 percent. The margin decline in EBITDA was impacted by
increased investments in mid-term growth initiatives.
Marketplaces Finland
Marketplaces Finland had a revenue growth of 82 percent in local
currency, driven by the acquisition of Oikotie. The pandemic
bounce back affected the underlying operating revenue positively
in Finland. Positive trends in the Real estate, Job and Generalist
marketplaces were offset by a slight decline in display advertising.
The EBITDA margin in Marketplaces Finland declined by
3 percentage points in local currency compared to the previous
year, resulting in an EBITDA margin of 9 percent.
Marketplaces Denmark
Marketplaces Denmark had a revenue decline of 4 percent adjusted
for foreign exchange and the timing of the acquisition. A shortage
in new car availability caused by the current supply chain crisis led
to a mid-single digit decline in the Motor vertical in 2021. The
EBITDA margin in Marketplaces Denmark was 23 percent in 2021.
eCommerce & Distribution
Operating revenues from eCommerce & Distribution grew by
19 percent, driven by the large shift to online shopping in 2020
continuing into the first half of 2021. “Distribution new business”
managed significantly increased levels of activity and demand
during the first half of 2021, and operating revenues grew by
44 percent. This trend was driven by volume growth due to
innovative new services and an increase in the number of
customers, attributable in part to the pandemic. In addition
“Distribution legacy” revenues grew by 9 percent due to increased
volumes from the new business operations.
News Media
News Media operating revenues increased by 6 percent in 2021
(6 percent adjusting for foreign exchange fluctuations). News
Media experienced strong development across brands in 2021. All
brands delivered solid growth within digital subscriptions and
News Media reached the milestone of 1 million digital subscribers.
Aftonbladet and VG also contributed with significant increases in
digital advertising revenue compared to 2020. Casual sales
revenues continued to drop in line with circulation, only slightly
offset by price increases.
News Media continued the strong traffic growth from 2020 during
2021, particularly for VG and Aftonbladet. These two brands
strengthened their positions as the primary news destinations in
Norway and Sweden respectively, driven by people’s need to stay
informed about the COVID-19 pandemic, politics and other
important events both nationally and internationally.
News Media reached its targets for several strategic priorities. The
cost reduction program of NOK 500 million from early 2020 to the
end of 2021 was successful. EBITDA grew by 28 percentage points,
resulting in an EBITDA margin of 12 percent driven by savings from
the cost program, reduced costs due to remote working in the first
half of the year and an improved revenue trend, slightly offset by
new growth initiatives including PodMe.
Financial Services & Ventures
Financial Services achieved operating revenue growth of 3 percent
in 2021, and an EBITDA decline of 1 percentage point compared to
the previous year, resulting in an EBITDA margin of 12 percent.
Lendo
Operating revenues in Lendo increased by 11 percent (13 percent
foreign exchange neutral) and the year was marked by large growth
SCHIBSTED ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
8
differences between markets. Norway performed well and Sweden
contributed strongly to growth in the second half of the year.
Operating revenue declined in Denmark and Finland due to
regulatory tightening in the consumer credit sector and to lending
constraints. EBITDA decreased by 1 percentage point compared to
the previous year, resulting in an EBITDA margin of 19 percent due
to increased investments in product development, entry into two
new markets (Spain and Portugal), and increased marketing spend
in Sweden in the first half of the year due to a change in the
competitive landscape.
Prisjakt
Prisjakt had a revenue decline of 4 percent in 2021 (1 percent
decline foreign exchange neutral), driven by increased competition
and strong comparable figures from 2020. Prisjakt had an EBITDA
margin of 29 percent.
Research and development
Schibsted has been at the heart of the digital transformation for
decades and continues to invest substantially in improving and
developing the products offered to its users. All Group entities are
making continuous efforts to further develop existing products and
develop new products that will provide new revenue flows.
Innovation efforts in 2021 focused on enabling data collection and
use across the Group, machine learning, and on platforms and
components for Schibsted’s newspapers, marketplaces, and
distribution technology.
Operational and financial risks
Schibsted is operating in an industry that is subject to constant
change, and is exposed to increased competition from disruptive
players who are utilizing new technologies and new business
models. Schibsted is committed to using new technology and
innovation. We want to grow sustainably with diversified revenue
streams from Marketplaces and Distribution, News Media,
Financial Services and Venture companies that are vital
contributors to bringing risk down to an appropriate level.
In general, Schibsted’s advertising revenues, marketplace
revenues from the recruitment markets, and to some extent real
estate markets, are affected by macroeconomic cycles, i.e.
unemployment rates, real estate prices and GDP growth rates.
Throughout 2021, we have seen a difficult car market across
Europe. This has also affected Schibsted through the Motor vertical
in marketplaces. However, we see that this trend has varied across
different geographies, and has resulted in a lower impact for
Schibsted as a whole.
Revenues from casual sales and print revenues in News Media and
the Travel vertical in Finn have suffered due to the pandemic.
However other revenue streams, such as Distribution, have seen
the opposite development as a result of the pandemic and
various mobility restrictions. In addition, the digital
transformation in News Media has made Schibsted less dependent
on print advertising and casual sales.
A large part of Schibsted’s business model is based on, and reliant
on, technology. We see continuously changing and maturing cyber
threats from different actors trying to engage in sophisticated
attacks on Schibsted’s systems. Prevention of such attacks, and
proper recovery, is a high priority and a vital part of Schibsted’s
business.
Schibsted uses data to provide relevant and competitive products
to our customers. We continuously work to meet legal
requirements and user expectations. We have close and ongoing
dialog with regulators.
Schibsted holds a 33 percent ownership share in Adevinta which
represents a significant share of Schibsted's overall market
capitalization. Hence, Adevinta's financial and overall
development will impact Schibsted's financial results and share
price. Adevinta is to a large extent exposed to the same operational
and financial risks as Schibsted’s marketplace businesses. During
2021 and into 2022, Adevinta has experienced a significant decline
in volumes within the Motor verticals across geographies due to the
global supply shortage of new cars. Significant resources are also
invested in the transition to a more transactional business model
in most markets, as well as in the integration of the acquired eBay
Classified Group. Looking ahead, Adevinta is well positioned as the
largest pure-play classifieds business in the western world, and as
a strong financial owner with two seats on Adevinta's board of
directors, Schibsted will continue to take an active role in further
developing Adevinta, with focus on value creation.
Through its operations outside Norway, Schibsted is exposed to
fluctuations in the exchange rates of other currencies, mainly
the Swedish kronor, Danish kroner and the euro. The Group makes
use of loans in foreign currencies and financial derivatives to
mitigate its currency exposure.
Schibsted’s credit risk is considered low, since trade receivables
are diversified through a large number of customers, customer
categories and markets. Moreover, a large proportion of sales is
conducted through prepaid subscriptions or advertisements and
through credit card payments on the purchase date. Liquidity risk
associated with cash flow fluctuations is also considered low, given
Schibsted’s adequate equity and solid credit facilities. See
Note 25 Financial risk management in the consolidated financial
statements for more details on currency risk, credit risk and
liquidity risk.
Sustainability Report
Sustainability is integrated in our strategy at Schibsted.
Schibsted’s strategy is to build a strong foundation to support our
brands in their growth, based on a common purpose. In that
purpose we acknowledge that our services and operations have an
important societal and environmental impact, and we strive to
consider and manage our impact in all our business decisions and
through our services empower people to make economic and
sustainable choices. One of our overarching goals is to make sure
that growing our business and having a positive impact on society
and the environment is equally important. We are committed to
creating value to all our stakeholders and our sustainability report
is our way of communicating to all stakeholders how we are
progressing on that commitment.
A report on sustainability has been prepared in accordance with
section 3-3c of the Norwegian Accounting Act. The report is
presented as a separate document in the annual report. For 2021
SCHIBSTED ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
9
Schibsted also voluntarily reports on eligible activities under the
EU taxonomy, which is expected to be incorporated into
Norwegian law during 2022.
The sustainability report is an integral part of the board of
directors’ report.
Statement of Corporate Governance
Schibsted’s corporate governance principles are based on the
recommendations set out in the Norwegian Code of Practice for
Corporate Governance. In accordance with section 3-3b of the
Norwegian Accounting Act, a policy document describing
Schibsted’s corporate governance principles has been prepared
and is presented as a separate section in the annual report. The
policy document is an integral part of the board of directors’
report.
Insurance policy
The directors and officers of Schibsted ASA and its subsidiaries are
covered by a directors and officers liability insurance placed with a
number of international reputable insurers. The insurance covers
the directors’ and officers’ personal legal liabilities, including costs
related to legal defense and legal costs. The insurance also covers
employees in managerial positions or employees who are named
in an inquiry or investigation or who are named as co-defendants
with a director or officer, and is extended to include members of
the company’s audit committee, compensation committee and
other management or board committees.
Schibsted ASA is the parent company of the Group and is located in
Oslo, Norway. The company provides services for the Group’s other
companies. Schibsted ASA delivered a profit after tax of
NOK 1,011 million (NOK 2,051 million)
i
. Most of the profit stems
from group contributions and dividends from subsidiaries. As at
31 December 2021, Schibsted ASA had total assets of
NOK 30,277 million (NOK 26,783 million)
i
. The equity ratio was
49 percent (53 percent)
i
.
The Board proposes to allocate NOK 468 million, corresponding to
NOK 2.00 per share, to dividend payments for 2021.
The Board of Directors proposes the following allocation:
Proposed dividend ……………………………
NOK 468 million
Transferred to other equity ..…………..…….
NOK 543 million
As at 31 December 2021, Schibsted ASA had total equity of
NOK 14,767 million. The Board of Directors has determined that
Schibsted ASA had adequate equity and liquidity at year end 2021.
Outlook
As a family of digital brands with world-class media houses in
Scandinavia, leading marketplaces, and digital services, Schibsted
empowers millions of people in their daily lives, driven by the goal
to uphold a society built on trust and transparency.
As in the rest of the world, the COVID-19 pandemic has had a
significant impact on the economies in our markets and parts of
our business. However, there has been a strong rebound thanks to
large stimulus packages, the gradual reopening of society and an
acceleration of digital transformation across industries that has
created new possibilities for many of our businesses. While some
uncertainty remains, the developments in our businesses over the
past two years and the economic forecasts for the Nordics are
encouraging.
After witnessing resilience during the pandemic and exceptional
revenue growth in 2021 driven by the rebound of the Job verticals
in Sweden, Finland and particularly Norway, we remain confident
in the growth potential for our Nordic marketplace business and
reiterate our medium- to long-term target to grow annual revenues
by 8-12 percent for this segment. Going forward, we expect growth
to be driven primarily by three factors.
First, by leveraging our Nordic market positions driven by the
development of better products and value-added services for our
traditional online classifieds offering. An example of this is the new
Real estate offerings “Small”, “Medium” and “Large” in Norway,
creating a more effective marketplace for agents and users.
Second, by creating new revenue streams from transactional
services with a focus on the Generalist business and the Motor
vertical, and third, by expanding and consolidating in the Nordics.
The high growth ambitions and the transition to transactional
marketplaces will require investments related mainly to product
and technology as well as to marketing spend. As these costs occur,
they will temporarily lead to limited operational leverage across
our marketplaces. In Sweden we expect to see a margin decline
compared to the 42 percent for the full-year 2021, driven by a
combination of the above mentioned investments and a simplified,
reduced pricing model for the Generalist C2C business in order to
prepare for the transition to a fully transactional model.
For our News Media business, the key issue will be the continued
transition to a future-oriented, digitally focused news
organization, with even stronger emphasis on our subscription
business, to secure News Media’s long-term financial profitability
and safeguard its high relevance for society. News Media already
has a strong and loyal customer base in Norway and Sweden, with
more than 1.4 million subscriptions in total and further
strengthened by the acquisition and scaling of PodMe. The latter
strengthened our position within podcasts which is one of several
content initiatives to grow our subscriptions business. The overall
ambition is to double our pure digital subscription revenues from
NOK 1.3 billion in 2021 to NOK 2.6 billion by the end of 2025. Based
on our strategy and progress, we expect annual, low single-digit
revenue growth in the medium-term and a medium-term EBITDA
margin for News Media in the range of 10-12 percent.
In eCommerce & Distribution, we will continue to focus on new and
innovative product and tech solutions supporting the strong
megatrend of growth within ecommerce. We expect continued
good revenue growth though at lower levels than over the past two
years, which was positively affected by the COVID-19 pandemic and
related lockdown restrictions.
Within Financial Services & Ventures, Lendo is expected to grow
well over time. Investments in its international expansion will
continue in 2022. These expansion costs are expected to be similar
to those in 2021, but will be skewed more toward new and
SCHIBSTED ANNUAL REPORT 2021
BOARD OF DIRECTORS’ REPORT
10
improved products in existing markets and less toward further
geographical expansion.
Prisjakt has performed well in recent years, securing a leading
market position in an industry with significant tailwind and with
several ongoing growth initiatives. However, the price comparison
market is still fragmented, and we see several interesting
consolidation opportunities. In this context, we have decided to
initiate a strategic review of the business in 2022 with the aim to
unleash Prisjakt's full potential.
Russia's invasion of Ukraine and related sanctions which have been
imposed against Russia and Belarus have caused a significant
dislocation in financial markets, with increased risks to European
and global growth. At the time of publication of this report, the
consequences of the war are uncertain.
The ongoing war in Ukraine underlines the importance of a free
press and of independent journalism as a cornerstone of a
democratic and transparent society. Schibsted’s vital role as a
provider of quality journalism giving our readers and society at
large a solid basis for informed decisions has never been clearer.
Schibsted does not have activities or direct exposure to these
countries, but is following the situation closely. We have increased
focus on and implemented measures against cyber risk and are
continuously monitoring other potential indirect consequences
that may arise as a result of the war.
Going concern
Based on Schibsted’s long-term strategy and forecasts, and in
accordance with section 3-3a of the Norwegian Accounting Act, the
Board confirms that the prerequisites for the going concern
assumption exist and that the financial statements have been
prepared on a going concern basis.
I. Figures in parentheses denote the corresponding period for the previous year.
II. EBITDA as defined under Definitions and reconciliations in the Financial
Statements for the Group.
Oslo, 24 March 2022
Schibsted ASA’s Board of Directors
...........................................
Ole Jacob Sunde
Board Chair
...........................................
Karl-Christian Agerup
Board member
...........................................
Rune Bjerke
Board member
...........................................
Torbjörn Ek
Board member
...........................................
Satu Huber
Board member
...........................................
Hugo Maurstad
Board member
...........................................
Hans Kristian Mjelva
Board member
...........................................
Anna Mossberg
Board member
...........................................
Ingunn Saltbones
Board member
...........................................
Philippe Vimard
Board member
...........................................
Eugénie van Wiechen
Board member
...........................................
Kristin Skogen Lund
CEO
SCHIBSTED ANNUAL REPORT 2021
MESSAGE FROM THE BOARD
11
Ole Jacob Sunde has decided to step down as Schibsted Chair, after two decades of growth, bold moves
and significant value creation.
When Ole Jacob Sunde was appointed Schibsted Board Chair in
2002, he had already been a significant force for Schibsted’s
change for more than a decade. First as a close advisor to owner
and CEO Tinius Nagell-Erichsen, and later as a member of the
Board of Directors since 2000.
When Sunde was announced as Board Chair, Tinius Nagell-
Erichsen remarked that “Ole Jacob has been instrumental in the
development of what is now Schibsted. I have seen what he is
thinking about newspapers.”.
Since then, Schibsted has built on the values and legacy businesses
from its news media heritage, but has grown further as a family of
digital brands that span online marketplaces and digital consumer
services as well as news media. During that same period, Schibsted
has created and spun off the world’s leading marketplaces
company in Adevinta, made a successful transition within news
media from paper to global digital frontrunner, increased its own
market capitalization ten times, grown its international footprint
tremendously and built a relationship with 1 billion consumers
every month. All of this has happened under Ole Jacob’s guidance
and stewardship.
In many ways, Ole Jacob’s time as Board member and Board Chair
can be summed up as a period of bold moves in challenging times.
In 2000, when the dotcom bubble burst and both investors and
other companies shied away from digital initiatives, Schibsted took
a different path by launching and investing thoroughly in Finn. In
2008 and 2009, when the impact of the financial crisis forced
economy-wide scale backs in most of the Western world, Schibsted
built on its experience with Blocket and rolled out successful online
marketplaces in an array of new countries and markets. In 2020,
when the COVID-19 pandemic caused global uncertainty and
recession, Schibsted and Adevinta acquired eBay Classifieds Group
and completed the largest international acquisition in Norwegian
history.
Ole Jacob has throughout his time in Schibsted been a strong and
vocal voice for a free and independent press. The role of
independent journalism as a guarantee for transparency and
democracy in a society has always been close to his heart and as
such Ole Jacob has had a vital role in the successful transition for
Schibsted News Media from a paper based news organization to a
digital one that is well positioned for the future.
Throughout the last two decades, Ole Jacob has been an advocate
for the legacy that Schibsted has the privilege and responsibility to
carry forward. In later years, this has manifested itself in making
the purpose and principles that are shared by all Schibsted brands
and businesses clear.
In sum, Ole Jacob Sunde has been a significant and principled
defender of both the values that we build on and the values we
create. And for that, we thank him deeply.
Oslo, 24 March 2022
Schibsted ASA’s Board of Directors
...........................................
Karl-Christian Agerup
Board member
...........................................
Rune Bjerke
Board member
...........................................
Torbjörn Ek
Board member
...........................................
Satu Huber
Board member
...........................................
Hugo Maurstad
Board member
...........................................
Hans Kristian Mjelva
Board member
...........................................
Anna Mossberg
Board member
...........................................
Ingunn Saltbones
Board member
...........................................
Philippe Vimard
Board member
...........................................
Eugénie van Wiechen
Board member
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
14
A word from our CEO……………………...…
14
Sustainability at Schibsted…………………
15
Governance…………………………………..
17
EU taxonomy…………………………………
21
Societal impact………………………………
24
Our people…………………………………...
31
Environmental impact………………………
40
About the report……………………………..
47
GRI Content index……………………………
48
Schibsted is a family of brands that share a set of values and
principles that guide us whenever we make decisions as a company
or find ourselves at a crossroads. Our mission is empowering
people in their daily lives. Our vision is contributing to a society
built on trust and transparency. And at the root of our character,
we are a fearless force for change. Everything we do as a company
reflects these values and principles.
Since its foundation, Schibsted has carried the torch for
independent media and freedom of speech and continues to do so.
Our commitment to responsible use of the internet matters, and
Schibsted seeks to set the standard for transparency and respect
for people’s privacy. Schibsted’s role in safeguarding the
conditions that sustain the Nordic way of life is significant. We are
committed to upholding a high level of trust in society and equality
of opportunity through the impact of our products and services.
We believe in the power of our societal role because we believe
companies are more sustainable in every way – including
financially – when their purpose is about more than making a
profit. This has been a core belief in Schibsted for a long time.
Creating value at multiple levels and for all our stakeholders is not
a balancing act, but a positive spiral. Creating value for consumers
leads to increased use of services that benefit society and the
environment, which in turn attracts new talent and partners and
increases the value of our business for our owners and investors.
Each Schibsted business contributes in its own way and according
to its goals. As a family, we see the proof of this logic at work when
we see how value is created for each stakeholder group in unison.
And as a group, we see the proof of this logic when people find our
products and services valuable and make them a part of their lives
in ways that change how they act, consume, and understand the
world. That’s where we can see Schibsted’s true impact on society
and the environment. That impact matters even more in
challenging and turbulent times.
We will continue our commitment to the UN Global Compact and
its bold agenda, and we believe it is truly in line with our purpose.
Kristin Skogen Lund
CEO of Schibsted
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
15
Defining sustainability at Schibsted
Defining our societal and environmental impact and
understanding our stakeholders’ priorities form the basis for our
sustainability scope and priorities. Our point of departure is a
materiality analysis based on an impact assessment and
stakeholder dialog conducted during 2019.
Materiality analysis
In 2019 we updated our materiality analysis. We identified 15
sustainability aspects covering all our material sustainability areas,
based on previously identified aspects and a risk and opportunity
analysis of Schibsted’s value chain. In addition to this, we used an
external analysis performed by the Responsible Media Forum and
the recommendations on sustainability reporting (GRI Standards
and Sustainability Accounting Standards Board (SASB)). Our most
important stakeholders were identified by mapping stakeholders
based on interest in and influence on our business. Through a
combination of interviews, inquiries and surveys, we invited our
stakeholders to prioritize the identified sustainability aspects. For
some stakeholder groups we performed a desktop analysis to
identify their priorities.
Our stakeholders were given the opportunity to add aspects to our
list which they considered important. An impact assessment was
conducted on the identified sustainability aspects, based on their
relevance to Schibsted and on the economic, environmental, and
societal impacts of our operations. By combining the results from
our stakeholder dialog and the impact assessment, we could
further prioritize and select our material aspects. The result was
validated and discussed in a management workshop and
presented to the Board. The material aspects identified through
the materiality analysis were prioritized according to three levels
of importance: hygiene aspects, focus aspects and our unique
aspects. The higher up in the pyramid you come, the higher is the
possible impact you can have on society and the environment. It is
through our business we can have the highest impact.
When presenting the material aspects in this report we have sorted
them by governance, societal Impact, our people and
environmental impact.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
16
Stakeholder engagement
Who did we engage with?
How did we engage with them?
What is most important to them?
Users and readers
• Web surveys on selected brands
• Independent and high-quality journalism
• Empower circular and sustainable consumption
• Privacy and protection of user data
• User safety and fraud protection
Corporate customers (advertisers and
business partners)
• Interviews with randomly selected customers
• Independent and high-quality journalism
• User safety and fraud protection
• Privacy and protection of user data
• Empower people to make informed choices
Employees
• Web survey to all employees
• Fair business practice
• Attractive workplace
• Independent and high-quality journalism
• Empower people to make informed choices
• Diversity and equality
Investors
• Interviews with main investors
• Independent and high-quality journalism
• Privacy and protection of user data
• User safety and fraud protection
• Skills development and knowledge sharing
• Fair business practice
• Attractive workplace
Board members
• Interview and web surveys
• Attractive workplace
• Independent and high-quality journalism
• User safety and fraud protection
• Diversity and equality
Regulators (national and EU)
• Desktop analysis
• Fair business practice
• Diversity and equality
• Managing materials and waste
• User safety and fraud protection
• Privacy and protection of user data
• Sustainable investment and ownership
Analysts and rating agencies
• Analysis of inquiries
• User safety and fraud protection
• Privacy and protection of user data
• Fair business practice
• Skills development and knowledge sharing
• Attractive workplace
Media
• Desktop analysis
• Empower people to make informed choices
• Independent and high-quality journalism
• Diversity and equality
• User safety and fraud protection
• Sustainable investments and ownership
• Privacy and protection of user data
Potential employees
• Desktop analysis
• Reports from employer branding agencies
• Empower circular and sustainable consumption
• Diversity and equality
• Managing materials and waste
• Energy use and greenhouse gas emissions
• Health, safety and integrity of employees
Industry associations (national and
international)
• Desktop analysis
• Empower people to make informed choices
• Independent and high-quality journalism
• Diversity and equality
• User safety and fraud protection
• Privacy and protection of user data
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
17
Ambitions and targets
Our journalism, growth companies, and marketplaces impact their
surroundings significantly and are important cornerstones for
building a sustainable and democratic society. Awareness of our
positive and negative environmental and societal impacts will be
considered in all our business decisions.
Our sustainability direction is based on the materiality analysis. To
ensure an effective strategy that is suited to its purpose and aligned
with the materiality analysis, we have, together with the Executive
Management Team and their management teams, defined the
scope, long-term ambitions and short-term targets for each aspect.
To ensure our commitment and contribution to the UN Sustainable
Development Goals (SDGs), we have aligned our activities and
opportunities with the SDG Targets. Our performance will be
evaluated yearly by the Board and the outcome of previously
stated ambitions and targets are reported in each section in this
report.
Owner
The Tinius Trust is the major shareholder in Schibsted. The Trust
was established in 1996 by Tinius Nagell-Erichsen, the last active
member of the founding Schibsted family. Through the Trust,
Tinius Nagell-Erichsen wanted to ensure that Schibsted remained
a media group characterized by independent journalism, credible
and high-quality services, and long-term, solid financial
development.
Our purpose - mission, vision and character
Schibsted’s overall purpose, defined in 2021, is captured in three
core statements:
• Our mission: Empowering people in their daily lives
• Our vision: A society built on trust and transparency.
• Our character: A fearless force for change
Schibsted’s products and services help people make informed
choices, live more sustainable lives, and trust each other. The way
we see it, trust and transparency are defining qualities of a society
where people can thrive and be happy on a healthy planet.
Our mission of empowering people in their daily lives is rooted in
the values of our media heritage and a legacy of bold change. We
don’t claim to hold the truth – we seek to uncover it. We won’t
mislead people – we promote fair and open deals. We don’t wait for
the future – we shape it.
We are inspired by this common purpose and supported by the
shared foundation, shared goals and shared principles that unite
us. While each of the Schibsted brands and businesses
independently pursue opportunities to create value, it is as a family
working together that we flourish at a scale and in ways that truly
make a difference.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
18
Schibsted’s real impact comes from people finding our products
and services valuable and making them a part of their lives in ways
that change how they act, consume and understand the world.
At Schibsted we are never content with the way things are. We
believe in letting new opportunities develop, never allowing
yesterday’s successes to stand in the way. At our best, we are a
fearless force for change in a society built on trust and
transparency.
Schibsted is committed to creating value at multiple levels and for
all our stakeholders. This is not a balancing act, but a positive spiral
where creating value for consumers leads to increased use of
services that benefit society and the environment, which makes us
attractive to people we want to work with, and increases the value
of our business. Each Schibsted business contributes in its own way
and according to its own goals. As a family we see the proof of this
logic at work when we see these factors work in unison.
Sustainability governance model
The Board oversees and governs Schibsted’s sustainability
performance. For information about the governance structure of
the Board and its committees, see the statement on corporate
governance in the annual report.
We aim to incorporate responsibility for sustainability into our core
business. For each material sustainability aspect identified, a
member of the Schibsted Executive Management Team is assigned
responsibility for defining its scope, ambitions and targets and for
implementing, communicating, and evaluating performance
according to the defined ambitions and targets. The general
managers in each company are responsible for supporting and
monitoring each entity with rollout and implementation of the
Code of Conduct and other sustainability-related policies and for
retrieving data and information required by law.
The Head of Sustainability has overall responsibility for anchoring
sustainability in the overall strategy, ensuring that the material
sustainability aspects are prioritized, guiding the organization on
sustainability, and communicating with stakeholders both
internally and externally. The Head of Sustainability follows up the
Executive Management Team on reaching the ambitions and
targets set and reports to the Board at least yearly. The Head of
Sustainability reports weekly to the Chief People and Corporate
Affairs Officer, who is a member of the Schibsted Executive
Management Team.
Schibsted has initiated an internal program to boost
implementation of sustainability throughout the organization. In
2021, as in 2020, fifteen employees were appointed as
Sustainability Change Makers. The changemakers have allocated
10 percent of their working hours to the program. During the
program, the participants have completed a university course in
sustainable business management, supported accomplishment of
the sustainability ambitions and targets, and acted as internal hubs
to entrench the sustainability perspective in our business
operations. The program will be evaluated in the first half of 2022
before continuation.
Responsible ownership and investments
As a part of our core business, Schibsted is constantly evolving and
growing through investments in new operations or divestments. As
a responsible owner and actor in the investment industry, we need
to be constantly aware of how our companies impact society and
the environment. To ensure future-fit investments, we need to be
aware of the sustainability risks and opportunities associated with
potential investments and ensure that prospective and existing
investments are aligned with our internal sustainability guidelines.
Companies that are proactive and aware of their sustainability
risks and opportunities are generally more attractive and
profitable. Our long-term financial success is therefore dependent
on sustainable practices and knowledge in each company’s
operations. Our Chief Investment Officer, Chief Financial Officer
and Executive Vice President for Financial Services & Ventures are
responsible for ensuring that our investments are aligned with our
internal guidelines. In 2020 we defined a sustainable investment
policy that outlines our opportunity approach to sustainability in
our Financial Services & Ventures investments. We also defined a
process for how the policy would be implemented in our
investment process and active ownership. In 2021 we have put this
into practice for the majority part of our venture investments. In
the coming years, we expect sustainability in our investment
operations to continue to grow in importance, and we will continue
to embed the sustainability perspective fully in our Financial
Services & Ventures operations and ensure that our group
investments follow a similar policy and process.
Examples of investments in 2021
Campanyon
Campanyon aims to make nature accessible to everyone by
offering a platform where campers and hosts connect. The
sustainable holiday trend continues to grow, where
accommodation and experiences close to nature are central
elements. We’re convinced that incredible adventures start with
local, sustainable, authentic, and easy travel opportunities. At
Campanyon, we’re deeply committed to supporting sustainable
initiatives that protect nature. Why? Because we believe in the
power of nature to bring out the best in all of us. By highlighting the
efforts and dedication of our community, we dare to inspire
everyone to become nature’s best friend. Read more about
Campanyon at https://www.campanyon.com/en.
SYD
SYD is a subscription-based service offering organic menstrual
protection. All products are free of toxins and dyes, and are
designed with both function and aesthetics in mind. The business
model also includes close collaboration with Save the Children,
which means that for every package sold, SEK 3 goes to the
organization's work on enabling girls to attend school during
menstruation in parts of the world where safe protection is not
available. Women with no access to education are at a higher risk
of early/forced marriage, unwanted pregnancy, economic
dependency and social exclusion. An education means more career
possibilities and a greater chance for financial independence and
decision making. In other words, periods matter. Read more about
SYD at https://talkaboutsyd.com/en/.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
19
TIBBER
Tibber’s vision is to make sustainable energy consumption simple
and affordable for all households, and their mission is to reduce
energy consumption in European households by
20 percent. This is made possible by an app that provides
consumers with real-time analytics into energy usage, and pairs
with a variety of smart home devices to reduce energy
consumption at home. The target is to empower a sustainable life
for 10 million households in Europe by 2025. Read more about
Tibber at https://tibber.com/eng.
Code of Conduct and group policies
Everyone in Schibsted has a responsibility to uphold Schibsted’s
reputation and principles. Through the way we interact with each
other, meet our users and relate with our business partners, we
build and strengthen Schibsted’s reputation as a group with high
integrity. Our Code of Conduct outlines our principles and
standards for conducting business and serves as our key
sustainability policy. It is based on the UN Global Compact and
includes principles on human rights, labor rights, business ethics,
equal opportunities, anti-discrimination, child and forced labor,
anti-corruption and protection of the environment.
The Code of Conduct is implemented through our onboarding
process for new employees and live training is provided when
deemed necessary for targeted functions. In-person training was
limited during 2021 due to a change in priorities. The Code of
Conduct is available to all our employees on the intranet, along
with an e-learning course and a quiz, and includes a link to the
Speak Up function enabling anonymous reporting of misconduct,
breaches or potential violations. The Group Compliance Officer
receives these reports and delegates them to the appropriate
managers to follow up.
The Code of Conduct applies to all entities in which we own more
than 50 percent voting rights. Where Schibsted does not exercise
such control, the board members appointed by Schibsted shall
promote the main principles outlined in the Code of Conduct.
In 2021 a project was launched to revise the Code of Conduct. The
new code will be finalized in 2022.
In addition to our Code of Conduct, we have several policies at
Group level stating our principles and stance on sustainability
topics. Our Group policies are:
Governance
• Corporate governance principles
• CFO governing document
• Financial policy
• Group financial reporting policy
• Tax policy
• Legal policy
• Supplier Code of Conduct
• Environmental policy
Our people
• Journalism security policy
• Physical and travel security policy
• Diversity and inclusion policy
• Recruitment policy
• Discrimination, bullying and harassment policy
• Employee categorization policy
• Place of work policy
• Global travel policy
IT security and privacy
• Privacy policies and guidelines
• Information security policy and framework
Sustainability risk management
Constantly mitigating risk in our daily operations is key to a
successful business. A structured follow-up process of identified
risks and mitigating actions through established business reviews
has been designed and is currently being rolled out. All senior
managers have a responsibility to understand how sustainability
risks intertwine with Schibsted’s strategic, market and operational
risks to ensure that we are always compliant and proactive. For
Schibsted we have identified the main short-term/mid-term
sustainability risks presented below. In addition to our broad
sustainability risk assessment, we have in 2021 performed a
specific analysis to identify our risks related to climate change in
the coming decades. The report has been completed according to
the framework recommended by the Task Force on Climate-
related Financial Disclosures (TCFD). The report can be found here:
https://schibsted.com/sustainability/.
Our main sustainability risks are:
Cyberthreats
External cyberattacks, misuse of our services, and threats against
our internal IT security may cause incidents such as loss of personal
data, fraud, loss of sensitive business data, and inaccessible or
unreliable services. Incidents like these may cause reputational
loss, litigation, and serious leakage of sensitive personal data,
potentially threatening the privacy of our users.
Lower trust in institutions
The increased penetration of social platforms as news platforms,
the occurrence of fake news, press ethics failures, and campaigns
undermining mainstream media may reduce trust in mass media
channels. Lower trust may result in less willingness to pay for
content and use of products produced by mainstream media.
Consumer behavior is changing
Heightened awareness of sustainability issues among consumers
and regulators is changing current consumption patterns.
Increased demand for sustainable products and for sharing,
renting, reusing, and repairing items instead of throwing them
away will change traditional consumption patterns. Schibsted
must adapt to changing consumer behavior if we are to continue to
provide products and services that are relevant to our users.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
20
Sustainability-related legislation
An increasing number of national and EU regulations related to
digital markets, circular economy, and other sustainability topics
will have an impact on our businesses. These new regulatory
requirements may lead to a higher administrative burden and thus
have a negative impact on our possibilities to grow and develop our
services.
Ensuring a sustainable supply chain
Given that our core business is operating digital services and
producing, printing and distributing newspapers, the bulk of our
global procurement activity comprises the provision of
professional services, electricity, paper, ink, and ICT hardware and
software. In 2021 Schibsted continued the process of minimizing
our risks and negative impact throughout our supply chain. Our
Supplier Code of Conduct, to which our business partners will be
required to adhere, is based on the UN Global Compact’s Ten
Principles and outlines, among other things, our commitment to
protecting and upholding international human rights. In 2021 we
continued our efforts to include the Code in our contracts with
existing and new strategic suppliers. Due to other priorities, our
pilot program on supplier assessment involving six of our
companies was put on hold. The work will be redefined and
launched in 2022. The outcome will be to support Schibsted
companies to implement policies, processes, and tools to analyze,
monitor, assess and develop their suppliers. The tools include a
risk analysis tool and an assessment and monitoring tool. The most
important risk evaluation criteria will be country of origin, industry,
supplier dependency, and spend. The purpose of the work is to
identify group-wide high-risk suppliers and industries and to define
group-wide screening processes for further implementation in
other parts of our organization. The work is a preparation for
complying with the Transparency Act (Norway) and similar
legislation to come from EU.
Fair business practices
Long-term sustainable growth can never be built on unfair
business practices. Schibsted continuously improves and
evaluates the functionality of our policies, processes, controls, and
procedures to mitigate the risk of corruption, and reviews
applicable legislation in key markets. None of our employees at
operational, strategic or governance level may accept or
participate in any form of corruption. Furthermore, everyone is
responsible for preventing any kind of corruption in their daily
work.
Our Code of Conduct covers topics such as bribery, facilitation
payments, and conflicts of interests as well as rules for how to
handle gifts and hospitality. When entering into agreements with
new business partners, the Legal and Compliance function
assesses the need to perform full or limited due diligence
procedures based on the nature and scope of the acquisition.
Group Treasury is always involved in transactions and ensures
compliance with our principles regarding payments to low-tax
countries and other payment-related issues.
Employees can anonymously report actual or suspected
misconduct to our whistle-blower function from an external
provider. All cases of actual or alleged fraud and corruption shall
be brought to the attention of the Group Legal Department.
Public policy
We live in an environment where conditions for tech, media and
politics are continuously changing. Digital disruption is challenging
business models and values crucial to Schibsted's companies. As
the digital markets evolve, the need for regulation has become
increasingly apparent. Politicians around Europe have been calling
for regulation of big tech, putting pressure on the EU to develop
new rules for competition policy, liability for products and services
on digital platforms, and for online advertising.
Schibsted's mission to be a leading voice in our industry is
demonstrated by our active outreach and position on digital issues
toward policymakers in our national markets and in the EU. We
have a dedicated public policy team that is drafting position papers
on prioritized issues and is building knowledge about our markets
for policymakers. We aim to build advocacy alliances with other
actors in our industries, and through opinion editorials raise
awareness in the general public about the challenges we
encounter in our markets.
In 2021 Schibsted conducted active advocacy outreach in Brussels
and our national markets to present our position on various
regulatory initiatives for the digital market. In December 2020 the
EU Commission presented its proposals for a Digital Services Act
regulating illegal content in online platforms and for a Digital
Markets Act regulating large digital gatekeepers, and we actively
advocated our positions on these proposals in 2021. We also
participated in national discussions on the value of data,
regulation of financial services, distribution, circular economy, and
media policy.
Partnerships and memberships
To demonstrate our commitment to increased transparency on
sustainability issues, Schibsted is a member of several global
initiatives, such as the UN Global Compact (participant) and
Transparency International. We report yearly to organizations that
evaluate our sustainability performance, including the Carbon
Disclosure Project (CDP), MSCI, Sustainalytics and ISS. We are also
a member of several industry organizations, such as the national
business organizations NHO in Norway and Svenskt Näringsliv in
Sweden, the Responsible Media Forum (RMF) including the
DIMPACT initiative, the European Publishers Council (EPC), the
Swedish Media Publishers’ Association (TU) and the Norwegian
Media Businesses' Association (MBL). In addition, we are part of the
Classifieds Marketplaces Europe (CME), the Coalition for App
Fairness (CAF) and the European Tech Alliance (EUTA) where our
CEO Kristin Skogen Lund is the president. The purpose of these
memberships is to unite with our peers and actively participate in
the media debate, as well as formulate and put forward questions
and statements of importance to the industry.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
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As part of our efforts to develop and support a sustainable society,
we are members of, or have initiated co-operation with,
organizations like Skift - Business Climate Leaders in Norway and
Nordic CEOs for a Sustainable Future. When selecting partners or
organizations to support, we focus on organizations that
contribute to making an impact in areas that are closely linked to
our material sustainability aspects.
The EU taxonomy is a classification system, establishing a list of
environmentally sustainable economic activities, and is viewed as
an important prerequisite for the EU to meet its climate and energy
targets for 2030 and to reach the objectives of the European Green
Deal.
The Taxonomy Regulation entered into force in the EU in July
2020 and establishes the basis for the EU taxonomy by setting out
the overarching conditions that an economic activity has to meet
in order to qualify as environmentally sustainable. The Taxonomy
establishes six environmental objectives:
1. Climate change mitigation
2. Climate change adaptation
3. The sustainable use and protection of water and marine
resources
4. The transition to a circular economy
5. Pollution prevention and control
6. The protection and restoration of biodiversity and ecosystems
The first delegated act under the EU Taxonomy on climate
objectives sets criteria for economic activities in the sectors that
are most relevant for achieving climate neutrality and delivering on
climate change adaptation and establishes a list of
environmentally sustainable activities by defining technical
screening criteria for the first two environmental objectives. A
second delegated act for the remaining objectives is expected to be
finalised in 2022.
Within the eCommerce & Distribution segment, Schibsted has
businesses operating in the transport sector, which is one of the
sectors included in the scope of the first delegated act. Activities
related to other sectors in which Schibsted operates are not yet
defined in the EU Taxonomy.
The EU Taxonomy Regulation and its delegated acts are not yet
incorporated into Norwegian law, and the reporting requirements
are not mandatory for the 2021 report for Norwegian entities.
Voluntary reporting is however both allowed and encouraged. The
EU Taxonomy Regulation and its delegated acts are expected to be
incorporated into Norwegian law in 2022.
Freight transport services by road
Schibsted has identified certain activities within the eCommerce &
Distribution segment that meet the definition of the activity Freight
transport services by road (6.6 in the delegated act), and therefore is
considered as an eligible activity according to the EU taxonomy.
In its reporting on the eligible activity Freight transport services by
road, Schibsted has included parcel delivery, delivery of goods and
delivery of newspapers. In other words, freight transport services
by road comprises both freight services sold directly to external
parties and, freight services related to other income-generating
activities in Schibsted such as the sale of newspapers in News
Media and sale the of goods in Morgenlevering.
Our casual sales newspapers are distributed by road transport.
These deliveries are operated by subcontractors who transport
newspapers from the printing plant to the distribution hubs or
retailers using trucks or vans. Newspaper and parcel delivery to
households is performed by subcontractors or our own employees,
including employees in our distribution network Helthjem. Last-
mile deliveries are mainly done by smaller vehicles or on foot.
KPIs and accounting policy
The definitions of the indicators in the taxonomy, applied by
Schibsted for the purpose of voluntarily reporting for 2021, is to the
extent possible consistent with similar expressions used in
Schibsted’s financial statements and other financial reporting. The
definitions applied may change in line with future development of
the regulation and common practice. Please note that the applied
definition of operating expenditures (OpEx) only represents a
subset of the sum of operating expenses included in gross
operating profit (loss) as reported in the Group’s consolidated
income statement.
The indicators in the taxonomy are intended to be a measure of the
proportion of the entities activities that qualify as environmentally
sustainable. The indicators are:
• Turnover
• Capital expenditures (CapEx)
• Operating expenditures (OpEx)
SCHIBSTED ANNUAL REPORT 2021
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For the reporting of eligible activities according to the EU
taxonomy turnover, CapEx and OpEx for the Group are calculated
using the same accounting principles as for the consolidated
financial statements prepared in accordance with International
Financial Reporting Standards (IFRS), as adopted by the EU.
Turnover
Turnover from Freight transport services by road includes all
transport services sold directly to external customers. Turnover
from eligible activities also includes external revenues from the
sale of newspapers within News Media and the sale of goods within
Morgenlevering, which are allocated to turnover from freight
transport services by road. The allocations are based on the
internal invoicing between the businesses conducted at arm's
length and are consistent with how this activity is reported in the
segment reporting; please refer to note 6 to the consolidated
financial statements.
Turnover from eligible activities is presented as a percentage of
operating revenues as reported in the Group’s consolidated
income statement.
CapEx
CapEx includes investments in assets that are associated with
taxonomy-eligible activities by being essential components
necessary to execute the activity. During 2021 CapEx has been
related mainly to investments in software platforms, assets and
equipment utilized in the activity such as Helthjem’s new
distribution hub in Vestby (Norway) and infrastructure for
establishing in-store pick-up points. Schibsted has also invested in
Paxters (light electrical vehicles) utilized in delivery services during
2021.
CapEx related to eligible activities is presented as a percentage
of total investing activities related to development and purchase of
intangible assets, and property, plant and equipment including
right-of-use assets according to IFRS 16, as disclosed in notes 17,
18 and 19 to the consolidated financial statements.
OpEx
According to the Taxonomy Regulation the OpEx KPIs only include
costs that relate to the following functions:
• Research and development
• Building renovation measures
• Short-term lease
• Maintenance and repairs
In addition the definition of OpEx includes other direct
expenditures relating to the day-to-day servicing of assets that are
necessary to ensure the continued and effective functioning of
such assets. OpEx related to eligible activities should be presented
as a percentage of the total estimated expenses related to the
specified functions within the Group.
As Schibsted mainly performs its freight transport services by road
using subcontractors and employees using their own vehicles,
Schibsted is required only to a limited extent to invest in essential
components necessary to execute the activity. Moreover, costs
related to renovation measures, maintenance and repair, are
marginal for the same reasons. Based on this, the OpEx related to
freight transport services by road is assessed to be close to zero
and not material for the operating business model.
Where the eligible activity includes intra-group transactions, the
elimination is included in “Non-eligible activities”.
Non-eligible activities
Most of the operations in Schibsted are not defined in the first
delegated act of the EU taxonomy and are therefore included as
non-eligible activities in the reporting. A summary of the most
significant operations in Schibsted is included below.
Nordic Marketplaces comprises online classified operations in
Norway (Finn), Sweden (Blocket), Finland (Tori and Oikotie) and
Denmark (Bilbasen and dba). These operations provide
technology-based services to connect buyers and sellers and
facilitate transactions, from job offers to real estate, cars, travel,
consumer goods and more. Nordic Marketplaces also include
adjacent businesses such as Nettbil and Qasa. Our marketplaces
facilitate secondhand trade, and we want to empower our user’s
ability to engage in more circular and sustainable consumption.
This is an important contribution to the circular economy.
News Media comprises news brands such as VG, Aftenposten,
Bergens Tidende and Stavanger Aftenblad in Norway and
Aftonbladet and Svenska Dagbladet in Sweden in both print and
digital formats, in addition to printing plant operations in the
Norwegian market.
eCommerce & Distribution is primarily the distribution
operations in Norway which delivers not only newspapers but also
parcels for businesses and consumers. Helthjem and
Morgenlevering are the key eCommerce & Distribution brands.
Financial Services & Ventures consists of a portfolio of digital
consumer brands. Lendo is the key brand in the portfolio, offering
digital marketplaces for consumer lending. In addition, Prisjakt
offers price comparison for consumers.
SCHIBSTED ANNUAL REPORT 2021
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● Fulfilled
◐ In progress
○ Not started
Material aspect: Fair business practice
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Prevent corruption in our operations
and industry, and continue to
transparently communicate and
report on our business practices and
purposes.
◐
Revision of the Code of Conduct
initiated. New Code of Conduct will
be launched in Q2 2022.
Sustainability Report 2020
published, covering GRI and COP.
CDP completed. TCFD report for
2021 completed. The report is
published on
www.schibsted.com with a
link from the Sustainability Report
2021.
The initiated revised Code of
Conduct is aligned with the
responsible AI framework.
Ambition (long term)
• Prevent corruption in our operations
and industry and continue to
transparently communicate and report
on our business practices and purposes.
Linked SDG Target
• Substantially reduce corruption and
bribery in all their forms (16.5).
◐
Linked SDG Target
• Substantially reduce corruption and
bribery in all their forms (16.5).
Target 2021
• Define a plan for how to create and
increase awareness of the Code of
Conduct and revitalize the Speak Up
function.
• Compliant and transparent yearly
reporting on sustainability, climate
risk, governance, ownership and
public policy (TCFD, GRI, COP, CDP).
• Align our responsible AI framework
with our sustainability scope and
Code of Conduct.
◐
●
●
Target 2022
• Launch the revised Code of Conduct.
Define a plan for creating awareness and
increasing knowledge regarding the
Code of Conduct and revitalize the
SpeakUp function.
• Compliant and transparent yearly
reporting on sustainability (TCFD, GRI,
COP).
Material aspect: Sustainable investments and ownership
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Be ranked as the industry leader and
ensure that invested capital is used to
drive innovation for future-fit
business models.
◐
Policy not established, but the
policy for Financial Services &
Ventures was used as the basis for
two Group M&A transactions.
A framework for materiality
analysis for our brands has been
developed and applied to several
brands. Further structure not yet
defined.
Schibsted Marketplaces Finland is
onboarded through a materiality
analysis. This will be used as basis
for setting the sustainability
agenda. Onboarding of Denmark
was postponed due to other
priorities.
The Sustainability Report 2021
includes compliant information on
how the Taxonomy Regulation
affects Schibsted.
Ambition (long term)
• Be ranked as the industry leader and
ensure that invested capital is used to
drive innovation for future-fit business
models.
Target 2021
• Establish a sustainable investment
policy and a process for sustainability
screening of potential group
acquisitions/investments.
• Finalize and start to implement a
sustainability maturity road map that
applies to all our operations.
• Perform sustainability onboarding for
our new marketplaces in Finland and
Denmark.
• Ensure our understanding of the
implications of the published EU
Taxonomy Regulation and the EU
Sustainable Finance Disclosure
Regulation.
○
◐
◐
●
Target 2022
• Establish a sustainable investment
policy for the Group and a process for
sustainability screening of potential
acquisitions/investments.
• The sustainable investment policy for
Financial Services & Ventures is used on
all new investments for the investment
memorandum and due diligence.
• Perform a pilot with one or two of our
venture investments to outline a
process for how to create value out of
sustainability.
• Continue to roll out the framework for
materiality analysis for more brands and
organizations.
• Ensure alignment with the EU
Taxonomy Regulation and the EU
Sustainable Finance Disclosure
Regulations.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
24
Due to our size and market presence, our services and operations
have significant societal impact. Having such an impact implies
considerable social responsibility. Our diverse services and
products have different types of impact on society. At its best, our
journalism contributes to a functioning democracy by diminishing
the gap between what citizens know and what they need to know
about the world around them. Our online financial services have
dramatically strengthened our users’ influence and power, and our
marketplaces facilitate an efficient and transparent market for
goods, jobs, education and real estate.
In addition to our positive contribution, we have an important
responsibility to minimize any negative impact associated with our
services. Our journalists strive every day to produce factual and
reliable media content, and our marketplaces and other digital
services have an extensive agenda for continually preventing
malicious use of our services, such as fraud and data theft.
A trusted digital partner
In a digital age, transparency, safety, and integrity are prerequisites
for building trust and a sustainable business model. This applies
not only to our journalistic process and online services, but also to
areas such as privacy and integrity, user trust, fraud protection and
user information security.
Privacy and integrity
Schibsted’s strategic focus on data aims to create insights that
benefit our users through building better and more relevant
products and services. Over the past few years, we have worked on
executing Schibsted’s data strategy to ensure that we develop the
best products and services for our users and customers based on
data. Our users are informed of how we do this, and of how they
can control how we use their data. We make extensive efforts to
ensure that we process data in compliance with applicable privacy
regulations and our users’ expectations.
Our work on privacy and integrity is led by our Chief Privacy and
Data Trends Officer, who is supported by a central team consisting
of privacy experts and data protection officers (DPOs) for our three
business areas. Employees receive privacy training to ensure
necessary awareness and competence in this area. In 2021 more
than 700 (2020: 400) Schibsted employees received training in
privacy and data protection. Our extensive privacy program has the
following key objectives:
• Ensure compliance with our legal obligations on a continuous
basis.
• Guide Schibsted’s data-driven approach by executing on
privacy by design across our product and tech organization,
embedding privacy into our corporate culture, tech stack, and
products.
• Provide efficient and automated tools to empower users’
control over their personal data by, for example, deciding how
their personal data is used or by accessing or deleting personal
data.
• Maintain and increase end-user and public competence,
knowledge and trust related to our use of data.
We conduct close and ongoing dialog with regulators and
legislators to understand and influence rules and practices. In
addition, we continuously collaborate with other companies on
developing industry standards in the best interests of our
consumers and our business.
Material aspect: Sustainable supply chain
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Establish a group-wide approach and
process that mitigate and minimize
our supply-chain risks.
◐
Postponed due to implementation
of the upcoming Transparency Act
(Åpenhetsloven) in Norway in July
2022. The act relates to enterprises'
transparency and work on
fundamental human rights and
decent working conditions. Similar
legislation to come from EU as well.
Ambition (long term)
• Establish a group-wide approach and
process that mitigate and minimize our
supply-chain risks.
Linked SDG Target
• Encourage companies, especially
large and transnational companies, to
adopt sustainable practices and to
integrate sustainability information
into their reporting cycle (12.6).
◐
Linked SDG Target
• Encourage companies, especially large
and transnational companies, to adopt
sustainable practices and to integrate
sustainability information into their
reporting cycle (12.6).
Target 2021
• Continue pilot aimed at establishing
processes for supply chain risk
monitoring and follow-up of six of our
brands.
○
Target 2022
• Establish the processes for supply chain
risk monitoring and follow-up for the
Group to comply with the upcoming
Transparency Act (Norway) and other
regulations to come from EU.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
25
Schibsted has extensive reporting procedures for handling
complaints and data breaches. Furthermore, we have extensive
measures in place for detecting vulnerabilities and thereby
preventing breaches. In 2021 we reported five (2020: 6) breaches
within this area to the data protection authorities. While we do not
yet know the outcome of all these cases, we cannot dismiss the
possibility that some of them may result in sanctions. Our goal,
however, is to avoid the imposition of sanctions for data breaches.
Our target for 2022, as in 2021, is to have no sanctions imposed by
the data protection authorities for data breaches. Furthermore, we
will ensure that all employees involved in the processing of
personal data receive privacy and data protection training. We will
continue to facilitate and take part in the public debate on the
data-driven society, responsible data, artificial intelligence and
privacy. We will also continue to be heavily engaged in discussions
at both national and EU level on how we can ensure European
entities´ ability to compete with the international data giants.
Responsible AI
At Schibsted we are leveraging the power of artificial intelligence
(AI) to build the best possible digital products and services for our
users and to support our employees. We are currently working on
AI across the Group in various ways. Our use cases vary from
enabling privacy-friendly contextual advertising and optimizing
our distribution operations to predicting how many newspapers
we should print in order to minimize our environmental footprint.
Our group is based on a long tradition of independent news,
trusted marketplaces, and digital consumer services.
Trustworthiness and quality are core to what we do, and when
using new tools such as AI we are committed to ensuring that our
implementation and experimentation represent these ideals.
Schibsted is dedicated to promoting the responsible application of
AI across and beyond our organizations, and we believe that a key
part of this is to be transparent about how and why we use these
new technologies.
AI has great potential for a group like Schibsted. But as we have
learned through research in and beyond Schibsted in recent years,
there are substantial risks related to using the technologies. These
can relate to issues such as human biases being encoded into AI
systems, or outcomes being hard to explain or understand. To
meet these challenges, we are currently piloting a new framework
for AI risk analysis in Schibsted. We call it the FAST framework, and
it provides a common basis for approaching risk in the areas of
Fairness, Accountability, Sustainability and Transparency across
the Group. The framework aims to provide support for brands and
functions across Schibsted’s diverse ecosystem in identifying,
managing and sharing risk in order to build and use the best
possible AI-powered products and services.
To learn more about FAST, how we are using AI as a tool to
empower people in their everyday lives, the research we are
conducting in the field, and other updates on the topic, please visit
https://www.schibsted.com/about/ai-in-schibsted/.
Fraud protection
From our personal finance companies such as Lendo and
Compricer to our leading marketplaces such as Finn and Blocket,
dedicated resources across our various brands focus on providing
a protected community. Our fraud protection controls for our
finance services include complying with regulatory obligations,
building automated security processes into our product services,
and providing dedicated customer support to protect our users.
The marketplace brands provide quality assurance to continuously
offer high-quality products and services to our users. These
activities include security protection to continuously scan, detect,
and remove fraudulent ads and provide dedicated resources in our
customer support centers to respond to any customer complaints.
We are dedicated to protecting our user communities against
fraud, building a safe and robust set of professional tools to
continuously monitor the safety and reputation of our marketplace
activities.
The quality and integrity of the media content across our media
houses are fundamental to our heritage and our future. Fraud
protection is essential to maintaining the trust of our readers and
our advertisers; it is critical to our mission. Schibsted's editorial
leaders are seasoned professionals with years of experience in
capturing critical news and bringing information to our various
reader communities. We embed editorial controls to ensure the
accuracy and integrity of our news. To protect our readers across
our leading media brands, Schibsted operates identity and
payment applications to protect user activities and transactions.
These systems are designed to best-practice standards, with
regular security monitoring and security testing to protect user
data. Our media houses constantly moderate community
discussions and comments on our community forums to protect
our readers. We ensure that any threatening, harassing, hateful or
illegal comments are removed, and our media houses are
mandated to close down discussions if deemed necessary. Our
editors and their staff are dedicated to operating media houses
that aspire to accurately and continuously inform our community
while protecting our users.
User information security
Schibsted’s information security management system focuses on
continuously protecting our users across our portfolio of
companies and the critical brands used in our customers’ daily
lives. The purpose of this system is to protect our brand
communities against cybersecurity attacks. Our information
security management system consists of a comprehensive set of
procedures and technical controls to continuously improve our
ability to provide leading products securely. This approach
provides a continuous means to analyze digital security risks and
effectively manage risks to maintain the trust of our users and user
communities.
Schibsted’s Chief Information Security Officer (CISO) coordinates
data and information security activities across all our companies.
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26
This is a proactive approach to protecting our brands and user data
across our businesses, products, and services. We are committed
to securing our brands and our users across our services and
serving as a trusted and vital digital partner in our users’ daily lives.
Our employees focus on protecting our users’ and readers’ data
from cybercrime. Our information security management system is
built on industry-proven best security practices, with dedicated
security professionals integrating cybersecurity best practices
from recognized industry standards like
ISO 27001, NIST Cybersecurity Framework, and OWASP.
Schibsted actively maintains security policies and guidelines
throughout our operations and brands. This comprehensive
security management approach entails constant protection across
the following security domain activities:
• Security compliance and risk management
• Access management security controls
• Application security management
• Secure product application design and architecture
• Network security management
• Vulnerability lifecycle management
• Third-party security management
• Security monitoring and security incident management
• Security awareness and security training
In 2022 the focus will be on continuing to execute the global
Schibsted cybersecurity program to strengthen our cybersecurity
capabilities across all of Schibsted. The program will improve
capabilities to detect, identify, protect against, and respond to
cybersecurity threats, vulnerabilities, breaches, and attacks as well
as to recover from them if/when necessary.
Responsible marketing
Marketing of our own services and lease space for marketing other
organizations’ services and products on our platforms constitute a
central part of our business. Responsible marketing is crucial in our
efforts to ensure that our brands maintain our users’ trust.
A significant proportion of revenues from our business areas
derives from advertising and partnerships. As a platform that
communicates other organizations’ marketing messages, we have
a responsibility to ensure that these services and products follow
our internal guidelines and comply with national and EU marketing
regulations and guidelines. For example, in Norway the Marketing
Control Act forbids marketing directed at children, and in Sweden
the Swedish Consumer Agency has compiled rules and practices
governing marketing directed at children and minors.
Each of our companies has formulated its own guidelines for
external advertising, and the general manager, publisher or editor
of each company is responsible for ensuring that marketing
content follows the guidelines. It is crucial for our media houses to
ensure independence of their journalistic content in respect of
advertisers and partners. Schibsted operates under the guidelines
of the Ethical Code of Practice for the Press, which also contains
rules for marketing. In practice this means that we have both an
advanced platform process and manual ways of ensuring that the
creatives used by our advertisers are well within our guidelines. In
addition, we have introduced a privacy-first audit process for third-
party vendors, hence we now work with only a limited white list of
vendors that we have pre-approved. Schibsted has also taken a
leading role in driving change in the industry and engaging in active
dialog with regulators and authorities in the common quest for
sustainable development in the best interest of our users,
customers, and our business.
Since we also market our own brands, we have a responsibility for
what we offer to the market and how we describe our services.
Some of our financial services, such as Lendo, are subject to more
stringent national regulations on how they may communicate their
marketing messages. The general managers for each brand are
responsible for meeting our ethical standards when it comes to
marketing.
Our main markets (Sweden, Norway, and Finland) all have
regulatory bodies (governmental or self-regulatory) that receive
complaints about advertising and that assess whether commercial
advertising complies with requirements. Some complaints related
to Schibsted and our brands were lodged in 2021. In Sweden, the
Swedish Advertising Ombudsman (a self-regulatory body)
reviewed two (2020: 5) cases, two (2020: 2) of which were upheld.
In Norway, the Consumer Authority and the Market Council
(independent administrative bodies) received zero (2020: 0)
complaints linked to Schibsted brands. In Finland, the Finnish
Chamber of Commerce (self-regulatory body) monitors marketing
practices and received zero (2020: 0) complaints linked to
Schibsted brands. None (2020: 0) resulted in fines or penalties.
In 2022 we will continue our dialog with policymakers regarding
responsible marketing to develop standards for our industry.
Independent and high-quality journalism
Freedom of speech and a free press are fundamental in a
democratic society. At Schibsted we are very proud of how our
media houses reach millions of readers, digitally and in print. With
this outreach comes democratic responsibilities. We want to
contribute to a more democratic and transparent society by
providing independent news and information as well as promoting
freedom of speech. When we do our job best, our words can change
society for the better; such is the power of journalism. Good
journalism exposes inequality, opens eyes, puts pressure on
politicians to act, and ensures that people’s voices are heard. This
represents the core activities of Schibsted’s media houses and
represents a unique tool to empower people in their daily lives. In
2021, as in 2020, this was demonstrated by the enormous increase
in demand for independent and trusted journalism created by the
uncertainty surrounding the COVID-19 pandemic and other major
political events. Several of our digital newspapers once again
reached all-time highs in readership and subscription figures. Due
to other priorities, the planned project on defining the purpose and
societal impact of our journalism was postponed. This work will
start in 2022. We will continue to invest in independent journalism
and excellent storytelling capabilities to develop our leading
positions.
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Since 2017 we have organized the yearly conference The Power of
Journalism together with the Tinius Trust. This event celebrates
journalism and its dynamic future, bringing together industry
leaders, partners, and colleagues to share ideas, discuss important
issues, inspire each other, and strengthen ties between those of us
who believe in the future of journalism. The 2020 conference was
cancelled due to the COVID-19 pandemic and the need to focus on
meeting the increased demand for journalism. In 2021 the
conference went digital with 450 participants. The conference with
the program, the presenters and production were all handled by
internal resources.
Another way in which our media houses promote independent and
high-quality journalism is through membership in international
global networks promoting high-quality investigative journalism,
such as the International Consortium of Investigative Journalists
(ICIJ) and the European Investigative Collaborations (EIG).
In Norway and Sweden, our editors are accountable for any
infringements of the law, and self-regulatory bodies have been
established to uphold their respective codes of ethics. These self-
regulatory bodies are founded on the principles of freedom of
speech and independence. Any complaints about our newspapers
are reported to the Norwegian Press Complaints Commission or
the Media Ombudsman (previously the Swedish Press Council). In
Norway, 23 (2020: 36) complaints were filed against our
newspapers in 2021, and 40 (2020: 34) in Sweden. No (2020: 1)
complaints against our newspapers in Norway were upheld and
one was upheld (2020:0) in Sweden. All complaints are taken
seriously and reviewed to avoid recurrence in the future.
Promoting freedom of expression
Schibsted’s Articles of Association state that the shareholders shall
enable Schibsted to operate its information business in such a way
that editorial freedom and integrity are fully ensured. In 2011
Schibsted’s Editors’ Forum adopted a framework for editorial
governance in the Group’s publishing businesses. This framework
safeguards the principle of editorial freedom.
In addition, our media houses defined more detailed in-house
ethical guidelines on editorial matters. Some of our media houses
prepare editorial reports in which they account for decisions by the
self-regulatory bodies and legal procedures, and how they work to
protect sources and journalistic methodology. To increase
transparency and readers’ understanding of how editorial choices
and decisions are made, some of our media houses have created
blogs, websites, and even podcasts where our editors and
journalists speak openly about the dilemmas they face when
making editorial decisions.
Empowering people to make informed choices
Through our services we enable Finns, Danes, Norwegians and
Swedes to make informed choices and access reliable information.
Uncertainty about information provenance is a societal issue, and
Schibsted’s role as a trustworthy and reliable source of information
is important.
Empowering people through journalism
For our media houses, empowerment means to enlighten and give
our readers accessible, transparent, informative, and balanced
media content. In a time when anyone can share their thoughts
online with minimal restrictions, our role becomes increasingly
important. Guided by our editorial guidelines, we act responsibly
and take our role seriously. In 2022 we will start working on a
forward-looking impact report for our media houses to be
communicated both internally and externally.
Consumer empowerment, transparency and efficient
marketplaces
Power continues to shift from companies to consumers. The
information revolution has given consumers a variety of
possibilities to make informed choices and has contributed to
lower prices and greater accessibility for consumers. Our
marketplaces create transparent, reliable and efficient markets for
goods, jobs, education and housing. Through our price comparison
services and financial services, we empower the consumer by
enabling access to comparisons, insights and independent
consumer information. Providing these types of services entails a
responsibility to further strengthen consumers’ power and
knowledge. The empowerment of consumers and users drives us
in our daily business and in our development of new services. In
2020 we developed our insights into and knowledge about how our
empowerment services impact society by defining measurements
for some of our brands and countries. The measurements were
selected based on how our stakeholders prioritize and define our
societal impact. This work continued in 2021 for more brands and
markets.
Stories that made a difference
Every year our journalists publish remarkable stories that help
bring about social change and public debate. Some of the stories
that made a difference in 2021 are presented below.
Dukkemannen: VG (Norway)
In the articles and podcast on Dukkemannen, VG reported on how
the now deceased psychologist Sverre Varhaug subjected his
patients to sexual abuse and controlled their lives for four decades
– and how no one managed to stop him. The story described 28
patient histories and reveals one of the worst serial abusers in
Norwegian history. The story also uncovered how these types of
cases are dealt with in Norway today when psychologists and
psychiatrists cross legal boundaries.
VG discovered that a shocking number of practitioners are
reinstated despite being found guilty of serious assaults and abuse
of their position as therapists. VG's investigation also revealed that
the health authorities have often received information about
serious assaults without reporting them to the police. The story
uncovered serious failures in the system and has had huge
consequences. A full investigation has now been launched, and this
exposé is expected to lead to major changes in the way cases like
these are dealt with in future.
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Bergen Engines: Bergens Tidende and E24 (Norway)
The Russian company Transmashholding, which has connections
to Russia's president Vladimir Putin, was set to acquire Bergen
Engines, which supplies engines for Norwegian military vessels.
The reporting by BT/E24 led to the sale eventually being stopped
by the authorities, despite earlier approval.
The story is a prime example of how editorial collaboration
between two of our brands (Bergens Tidende and E24) enables us
to make an impact through high-quality and thorough
investigative journalism. After the exposé, the then minister of
justice Monica Mæland announced in the Storting (Norwegian
parliament) that the government had decided to halt the sale of the
factory to Russian Transmashholding for reasons of national
security.
Svältalgoritmen: Svenska Dagbladet (Sweden)
The social media app TikTok has received a lot of criticism for its
algorithm promoting harmful material. In 2021, Svenska Dagbladet
published several articles scrutinizing how TikTok’s algorithm
promotes videos that negatively affect people with eating
disorders.
Late 2021, TikTok announced that it would change its algorithm,
writing that “certain kinds of videos can sometimes inadvertently
reinforce a negative personal experience for some viewers.” The
social media company will change how content can be varied so
that similar content does not come in a cluster. It will also let users
exclude videos with words or hashtags showing content they do
not want to see.
Spåren efter IKEAs kalhygge: Aftonbladet (Sweden)
Last year, Ikea was accused of selling chairs made from illegally
logged timber from Ukraine. The furniture giant rejected the
criticism and referred to an independent investigation, but kept
the latter classified. Following Aftonbladet’s investigation, Ikea has
begun an investigation in which its forestry specialists are
“reviewing in detail the accusations that have emerged in
Aftonbladet's article.”
If this investigation shows that Ikea's requirements are not being
complied with, it says it will act immediately, either by ending the
collaboration with suppliers or through mandatory improvement
measures.
Initiatives that made a difference
We are proud of how we contribute to society through the way we
run our core business and related initiatives. Some of our initiatives
that made a difference in 2021 are presented below.
In times of crisis: Finn (Norway) and Blocket (Sweden)
Schibsted marketplaces utilize their platforms to provide support
to those most in need in times of crisis. Several great initiatives
have been introduced:
“Gjerdrumhjelpen”: on 30 December 2020, a quick clay landslide
caused massive destruction to an entire residential area in
Gjerdrum municipality. Many people were left homeless. FINN.no
introduced the “Gjerdrumshjelpen” function, a digital hub to
connect those who needed assistance with users offering help.
Over 1,300 ads were posted on the microsite, which generated
500,000 visits.
Similarly, “Koronahjelp” and “Blockethjälpen'' functions were
introduced on our marketplaces to allow civic-minded users to
create their own adverts offering help to people affected by the
COVID-19 pandemic. Those in need could scan through the
“volunteer marketplace” to find the volunteers and the skills they
needed.
“Blockethotell”: a collaboration between Blocket and the Swedish
hotel chain Elite Hotels was initiated, aimed at matching empty
hotel rooms with people seeking accommodation and at saving
hotel jobs throughout Sweden. The accommodation was offered
via Blocket Bostad, Sweden's largest marketplace for rental
homes.
Blocket (Sweden) introduces OMOCOM micro insurance
Blocket introduced OMOCOM micro-insurance in January 2021,
giving users greater peace of mind when making secondhand
purchases. Many people can put off buying used items because
they lack the same confidence as when they buy brand new goods.
This can prove to be a major hurdle to the adoption of the sharing
economy and the circular economy society.
By offering OMOCOM, Blocket provides the option to insure small
item purchases so that, for example, a phone or other electrical
device could be replaced if it fails to charge or function as expected.
In this way Blocket continues to promote the reuse of existing
items, which in turn has a positive effect on the environment.
FINN Fixer Fund: Finn (Norway)
Norwegians throw away more electronic items than anyone else in
the world. A vast majority of what is thrown away could have been
repaired, but it often costs more to fix a broken refrigerator or
kitchen appliance than to buy a new one. While waiting for the
government to realize this and start supporting a circular economy,
FINN set up a "Fixer Fund" campaign in 2021, a small contribution
to the effort to get more people to repair their electronics. Support
was given to 100 people for one month. FINN will continue to find
ways to encourage people to take care of their things instead of
throwing them away.
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OIKOTIE Jobs (Finland): Better working life in Finland now and
in the future
Oikotie Jobs is developing responsible working life in Finland via
its Responsible Employer and Responsible Summer Job concepts.
700 employer clients joined these campaigns in 2021. The main
objective of the Responsible Summer Job campaign is to challenge
employers to offer more summer jobs of better quality to 14–29-
year-old employees. The employers participating in the campaign
commit to six principles to ensure a positive experience for
employees and employers alike:
• A good application experience
• Meaningful work
• Introduction and guidance
• Fairness and equality
• Reasonable pay
• Written contract and testimonial
As a forerunner in responsible working life, Oikotie wants to
provide better and more responsible working life experiences for
all employees in Finland. The employers participating in the
Responsible Employer campaign commit to promoting the six
principles of the campaign:
• Non-discrimination
• Work-life balance and well-being
• Contributing to supervision
• Meaning of work and development
• Remuneration in accordance with the demands of the position
• Good applicant experience
Oikotie Jobs also produces Finland’s largest Responsible Employer
study as a part of this concept.
Material aspect: Independent and high-quality journalism
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Ensure transparent media practices
and contribute to a sustainable and
democratic society.
●
Postponed due to other priorities.
Ambition (long term)
• Ensure transparent media practices and
contribute to a sustainable and
democratic society.
Linked SDG Target
• Ensure public access to information
and protect fundamental freedoms, in
accordance with national legislation
and international agreements (16.10).
●
Linked SDG Target
• Ensure public access to information and
protect fundamental freedoms, in
accordance with national legislation
and international agreements (16.10).
Target 2021
• Establish an editorial project to define
the societal impact of our journalism.
○
Target 2022
• Establish an editorial project to define
the purpose of our journalism.
• Invest in independent journalism and
excellent storytelling capabilities, to
continue developing our leading
positions.
Material aspect: Privacy and protection of user data
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Lead the industry in handling and
safeguarding personal and
sensitive data.
●
No incidents with negative outcome
from authorities.
Training completed for 700
employees.
Ambition (long term)
• Lead the industry in handling and
safeguarding personal and sensitive
data.
Target 2021
• Zero incidents categorized as
personal data breaches.
• Launch a group-wide training
program for employees on GDPR
and privacy.
●
●
Target 2022
• Zero incidents categorized as personal
data breaches with negative outcome
from authorities.
• All employees in scope complete
relevant privacy and data protection
training.
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Material aspect: Empower people to make informed choices
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Empower and enlighten people to
make well informed and sustainable
choices through all our operations
and drive innovation for future-fit
business models.
• Double the positive impact of our
marketplaces on society by 2023.
●
◐
Outcome of a changemaker project
on content impact presented. No
further actions taken.
Structure and content for training
program presented to News Media
for further evaluation.
Several measures implemented
from earlier projects.
Measurements also identified in
new projects that will be proposed
for implementation in 2022.
Ambition (long term)
• Empower and enlighten people to make
well informed and sustainable choices
through all our operations and drive
innovation for future-fit business
models.
• Double the positive impact of our
marketplaces on society by 2023.
Linked SDG Target
• Increase the number of people with
relevant skills for financial success
(4.4).
●
Linked SDG Target
• Increase the number of people with
relevant skills for financial success (4.4).
Target 2021
• Implement identified content impact
measurement on a voluntary basis for
our media operations.
• Perform training in climate journalism
for selected employees in our news
media operations.
• Implement previously identified
measurements of societal impact and
continue our mapping of potential
measurement of Next companies and
Nordic marketplaces and their
impact.
○
○
◐
Target 2022
• Aggregate and create a forward-looking
impact report (including trust and
transparency) for News Media to
communicate both internally and
externally.
• Implement previously identified
measurements on societal impact and
continue our mapping of possible
measurements for other brands in
Financial Services & Ventures and
Nordic Marketplaces.
Material aspect: User safety and fraud protection
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Ensure safe products with a
minimal number of fraud incidents.
◐
The targets were postponed due to
other priorities.
Ambition (long term)
• Ensure safe products with a minimal
number of fraud incidents.
Target 2021
• Identify areas for group-wide
collaboration and KPIs for fraud
incidents.
• Continue our roll-out of two-factor
authentication for our brands and
consider additional measures to
verify users.
○
○
Target 2022
• All breaches involving the Schibsted
Account reported to the on-call
function are responded to within 30
minutes.
• Brands supported with the continued
roll-out of the two-factor
authentication, using Schibsted
Account.
• All employees in scope complete
relevant security training.
• Improve News Media's business
continuity by performing a disaster
recovery test on at least one of the most
critical services in each brand.
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Schibsted relies on a diverse workforce to succeed. Our success
depends on employees from a wide array of cultures and
backgrounds contributing with their ideas and perspectives to
provide our users and readers with the best possible services and
products. Acting responsibly and offering an attractive working
environment are crucial for attracting and retaining the right
people, so at Schibsted we strive to maintain the highest standards
in what we and our stakeholders believe should be prioritized
regarding our people. This includes promoting diversity, inclusion
and belonging, skills development, knowledge sharing, and a safe
and healthy working environment that supports work-life balance
and employee integrity.
At year-end, Schibsted had 5,689 (2020: 5,182) employees (full-time
equivalents) in 10 countries. This number does not include the new
marketplaces in Denmark that were acquired in 2021. It does
however include all other companies in Schibsted, even if they are
not in scope in the sustainability report for 2021. For more
information about the report, see page 47. Most of our employees
are full-time workers employed at our offices. The exceptions are
employees on short-term contracts in our media operations, our
newspaper distributors in Norway, and employees at our printing
plants in Norway.
Employee data
<30 years
30-50 years
>50 years
Total
Total number of employees by age group
2021
2020
2021
2020
2021
2020
2021
2020
Norway
570
512
2,047
1,881
723
653
3,340
3,046
Sweden
380
338
1,208
1,118
195
185
1,783
1,641
Denmark
9
10
7
6
-
-
16
16
Finland
24
27
142
115
20
19
186
161
Poland
129
119
221
191
-
-
350
310
Other
5
3
9
5
-
-
14
8
Total
1,117
1,009
3,634
3,316
938
857
5,689
5,182
% change by age group
11%
10%
9%
10%
Denmark does not include the new marketplaces bought in 2021.
Male
Female
Total
Total number of employees by gender
2021
2020
2021
2020
2021
2020
Norway
2,116
63%
1,977
65%
1,224
37%
1,069
35%
3,340
3,046
Sweden
999
56%
941
57%
784
44%
700
43%
1,783
1,641
Denmark
9
56%
8
50%
7
44%
8
50%
16
16
Finland
93
50%
87
54%
93
50%
74
46%
186
161
Poland
246
70%
235
76%
104
30%
75
24%
350
310
Other
9
64%
6
75%
5
36%
2
25%
14
8
Total
3,472
61%
3,254
63%
2,217
39%
1,928
37%
5,689
5,182
No significant part of our work is performed by seasonal workers or workers who are not employees (external consultants or freelancers). Denmark does not include the new
marketplaces bought in 2021.
People strategy and employee representation
Our goal is to build a future-fit workplace for our employees, one
that is intellectual, virtually enabled, and aspirational, and that
offers a safe and healthy working environment (both physically and
psychosocially) while promoting work-life balance, diversity,
inclusion, and belonging. Our people strategy aims to be a
competitive advantage for Schibsted. We believe that our
employees represent the Group’s most important asset.
Material aspect: Responsible marketing
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Zero incidents of non-compliance
with applicable external and
internal standards or policies.
◐
Outcome of a changemaker project
presented to the Executive
Management Team, but no further
action taken based on the insights.
Reporting on non-compliance
concerning product and service
information labeling done for 2021.
Ambition (long term)
• Zero incidents of non-compliance with
applicable external and internal
standards or policies.
Target 2021
• Define an action plan on how to
apply a group-wide standard on
responsible marketing, based on
the outcome of a project carried out
in 2020.
• Zero incidents of non-compliance
concerning product and service
information and labeling.
○
◐
Target 2022
• Zero incidents of non-compliance
concerning product and service
information and labeling.
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32
To develop Schibsted as an attractive employer, we engage with
our employees and value-active employee representation. Three
employee representatives currently sit on Schibsted’s Board.
A further three employee representatives in the Group are elected
to act on behalf of all employees, both unionized and non-
unionized. Their function is laid down in the central Norwegian
collective bargaining agreements. The employee representatives
protect the employees' interests in matters that are dealt with at
Group level. These representatives serve as discussion partners for
management to assure the quality of decisions and processes. Two
of three employee representatives must be elected in Norway,
while the third should represent a country outside Norway where
Schibsted has its most extensive operations, currently Sweden.
As stipulated in our Code of Conduct, Schibsted’s employees have
full freedom of association and may organize themselves as they
choose. Schibsted’s European Works Council (EWC) meets twice a
year and serves as our forum for information, dialog, and
consultation between employees and the Schibsted Executive
Management Team. In 2021 Schibsted's EWC consisted of
19 representatives (14 men and five women) from four countries:
Norway, Sweden, Finland, and Poland. Collective bargaining
agreements or working environment committees are in place in all
operations to ensure excellent working conditions and to prevent
discrimination against employees. Overall, 78 percent of
employees were covered by a collective bargaining agreement at
the end of 2021 (2020: 78 percent).
Promoting diversity, inclusion and belonging
We see huge potential in a diverse workforce, and if we provide our
leaders with the right competence and tools to build a culture of
inclusion and belonging, we can release that potential and nourish
collaboration and innovation that can turn into a competitive
advantage for Schibsted. This is our raised ambition. We want
people in Schibsted to challenge the ordinary, find good ideas, and
achieve great things. To accomplish this, we depend on a
workforce with a diverse mindset that contributes with different
experiences, backgrounds, and perspectives. A company of which
our employees are truly proud to be a part of and to which future
employees aspire to be a part of. We want to stay relevant to the
people we want to empower in their daily lives by leveraging these
differences and making diversity a fundamental factor in creating
increased business value.
Diversity at Schibsted means all the differences and similarities
that make us unique as individuals. This includes traits such as
ethnicity, gender, age, functional capacity, and sexual orientation
as well as culture, religion, background, language, cognitive ability,
and more. By embracing and respecting these visible and invisible
differences, we create a psychological safe zone where each
employee feels empowered to achieve their best.
Embracing diversity, inclusion and belonging (DIB) within and
beyond our walls drives innovation across our business and
improves outcomes. It starts by attracting and making room for the
best talents, regardless of background. By making room for more
perspectives and therefore gaining insights into a wider range of
needs, we believe we can develop the best products and pave the
way for innovation.
In a move to strengthen its commitment and to put the right
practices in place to attract and retain a workforce that is as diverse
as our customers, Schibsted appointed its first Global Head of
Diversity, Inclusion and Belonging in 2021.
By establishing a position responsible for driving this across our
brands, we aim to accelerate and make everyone accountable for
leveraging the potential we see in a diverse workforce. The function
will facilitate and equip leaders and employees with the tools and
language to fearlessly navigate differences. The function will be
responsible for setting the strategic direction, goals, and
accountability to drive and embed diversity, inclusion, and
belonging across the company. With a view to gaining better
insight into diversity maturity of the organization, several projects
were initiated in 2021. DIB was part of the Strategy Summit 2021,
attended by Schibsted’s top 300+ leaders. The participants were
also provided with basic tools to better understand this area.
Schibsted aimed to conduct diversity potential studies in three
organizations in 2021, of which one was completed. The other two
started at the end of 2021 and will be completed in the first half of
2022. The purpose is to understand the culture, to uncover existing
diversity groups, diversity competence, which groups are
dominant, and which are not. This will help us understand the
actions needed and provide a baseline for where efforts should be
prioritized.
ACT, our global employee engagement survey, helps us measure
diversity, inclusion, and level of belonging in the organization. The
data from the survey lets us plan and improve our efforts in a more
systematic way. By facilitating communication and feedback, the
survey contributes to a climate of inclusiveness and feedback, and
employees feel that they are heard and involved. The survey
gathers feedback on evidence-based and research-driven
constructs:
• Non-discrimination
• Authenticity
• Acceptance
• Expressing opinions
• Inclusive leaders
• Equal opportunities
• Sense of belonging
• Career opportunities
• Larger purpose
• Engagement
• Quality of ideas
We are analyzing the results together with other mappings we
initiated. Once the work is completed, we will set targets and
develop a plan for how to achieve our ambitions in this area.
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In 2022 we will focus on leadership development in diversity
management and inclusive leadership across our organizations.
The competence development plan will focus on different teaching
and learning methods because we do not believe in the concept of
one size fits all. Personal experiences will form the core of this plan,
because we believe that is where real change
happens. Furthermore, we will continue to build a strong DIB
muscle that will support and manage a portfolio of DIB projects
across the organizations.
Initiatives that made a difference
Hack the journalism pipeline to stay relevant
To convey even better and more insightful news, we need
journalists with different backgrounds and experiences. Diversity,
inclusion and belonging are important values in a sustainable
newsroom, and we want our journalists to challenge the
established and explore new ideas. The number of applicants from
multicultural backgrounds is small, and few in these groups choose
to study journalism. In order to stay relevant, we invite
multicultural talents who possess competencies that can be
valuable for the media.
In 2021 we piloted a trainee program where we recruited one
trainee to Aftenposten, VG, Bergens Tidende and Stavanger
Aftenblad. Our aim is to develop and educate more journalists with
multicultural competence. The candidates do not need editorial
experience, but should have other competencies that could be
valuable for the media house. Together, we hope to create better
and more relevant news stories.
Furthermore, VG recruited a journalist to a permanent position to
help increase diversity competence and focus in the entire VG
editorial staff and to create content that engages target groups
which VG does not meet well enough today.
Kids Coding Camp
Schibsted organizes programs where children aged 9-12 are invited
to learn programming. No previous knowledge is required. The
purpose of the program is to introduce the younger generation to
programming and to increase children’s interest in technology.
The idea behind the Kids Coding Camp is to prevent digital
exclusion, create a more democratic and equitable digital society,
and increase diversity in the digital technology world of the future.
Coding is the language of the future, and all children should have
the right to learn it. The Kids Coding Camp is Schibsted’s
contribution to this development, and we hope this initiative will
encourage children to pursue coding in the future.
Association with Jobbsprånget
Hiring people with different backgrounds and perspectives is
valuable for our business and culture; that is why we are part of
Jobbsprånget, a four-month internship program for newly arrived
migrants in Sweden with an academic degree in engineering,
architecture, business or science. The program aims to speed up
entry into the Swedish job market and give newly arrived
academics a chance to showcase their potential.
We started with a couple of internships in the winter semester of
2021, which were subsequently converted to full-time positions. In
the spring semester in 2021 we again offered multiple internship
positions in a variety of fields in different Schibsted brands, such as
Data & Tech and Blocket. Nine internships were offered in 2021.
Schibsted Data & Tech: efforts and initiatives for a bias-proof
culture
Data & Tech strives to create an empowering and welcoming
workplace culture by having a unique onboarding process and
assigning extra resources to support new employees, many of
whom come from different countries. Building diverse teams and
an inclusive organization results in more diverse and inclusive
products and technologies.
Data & Tech has several programs and initiatives that foster these
values, such as She-tech, an employee-driven community for all
data & tech enthusiasts in Schibsted to promote and empower
women in the tech industry, regular sessions on unconscious bias
and fostering inclusion within different teams, and learning
material. Data & Tech had the formidable goal of hiring 30 percent
women in all tech recruitments across locations in 2021. This goal
was exceeded by 10 percentage points, with a total of 40 percent
women being hired in Data & Tech.
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Composition of governance bodies and operations by gender
Male
Female
Total
Total number of employees by gender
2021
2020
2021
2020
2021
2020
Board of Directors
7
64%
7
64%
4
36%
4
36%
11
11
-of which shareholder elected
5
62%
5
62%
3
38%
3
38%
8
8
Operations - Top management
158
61%
155
62%
100
39%
94
38%
258
249
Nordic Marketplaces
14
42%
16
59%
19
58%
11
41%
33
27
News Media
62
60%
51
59%
41
40%
36
41%
103
87
eCommerce & Distribution
21
72%
19
73%
8
28%
7
27%
29
26
Financial Services & Ventures
42
68%
54
64%
20
32%
31
36%
62
85
Other/Headquarters
19
61%
15
63%
12
39%
9
38%
31
24
Operations - Other managers
419
58%
399
58%
307
42%
286
42%
726
685
Nordic Marketplaces
80
53%
76
62%
71
47%
47
38%
151
123
News Media
198
53%
201
52%
177
47%
187
48%
375
388
eCommerce & Distribution
10
63%
7
70%
6
38%
3
30%
16
10
Financial Services & Ventures
49
62%
46
65%
30
38%
25
35%
79
71
Other/Headquarters
82
78%
69
74%
23
22%
24
26%
105
93
Operations - Other employees
2,892
61%
2,699
64%
1,815
39%
1,548
36%
4,705
4,247
Nordic Marketplaces
471
59%
472
61%
329
41%
304
39%
800
776
News Media
1,032
54%
920
55%
887
46%
738
45%
1,919
1,658
eCommerce & Distribution
538
79%
467
81%
147
21%
113
19%
685
580
Financial Services & Ventures
433
63%
433
64%
253
37%
240
36%
686
673
Other/Headquarters
418
68%
407
73%
199
32%
153
27%
615
560
Operations - Total
3,469
61%
3,253
63%
2,222
39%
1,928
37%
5,689
5,181
Other/Headquarters includes Schibsted Data & Tech.
Age and gender, by business area
<30 years
30-50 years
>50 years
Total
2021
2020
2021
2020
2021
2020
2021
2020
Board of Directors
-
-
-
-
4
36%
4
36%
7
64%
7
64%
11
11
Operations - Male
employees
650
19%
602
19%
2,178
63%
2,078
64%
643
19%
574
18%
3,471
3,254
Nordic Marketplaces
85
15%
83
15%
425
75%
433
77%
56
10%
46
8%
566
562
News Media
129
10%
103
9%
762
59%
699
60%
405
31%
372
32%
1,296
1,174
eCommerce & Distribution
129
23%
104
21%
304
53%
277
56%
136
24%
112
23%
569
493
Financial Services & Ventures
195
37%
195
37%
317
60%
324
61%
13
2%
14
3%
525
533
Other/Headquarters
112
22%
117
24%
370
72%
345
70%
33
6%
30
6%
515
492
Operations - Female
employees
467
21%
407
21%
1,456
66%
1,238
64%
295
13%
282
15%
2,218
1,927
Nordic Marketplaces
104
25%
83
23%
284
68%
249
69%
31
7%
31
9%
419
363
News Media
157
14%
125
13%
726
66%
620
65%
218
20%
215
22%
1,101
960
eCommerce & Distribution
40
25%
40
32%
98
61%
64
52%
23
14%
20
16%
161
124
Financial Services & Ventures
111
37%
110
37%
186
61%
182
61%
6
2%
4
1%
303
296
Other/Headquarters
55
24%
50
27%
162
69%
123
66%
17
7%
12
6%
234
185
Operations - Total
1,117
20%
1,009
19%
3,634
64%
3,316
64%
938
16%
856
17%
5,689
5,181
Nordic Marketplaces
189
19%
166
18%
709
72%
682
74%
87
9%
77
8%
985
925
News Media
286
12%
228
11%
1,488
62%
1,319
62%
623
26%
587
28%
2,397
2,134
eCommerce & Distribution
169
23%
144
23%
402
55%
341
55%
159
22%
132
21%
730
617
Financial Services & Ventures
306
37%
305
37%
503
61%
506
61%
19
2%
18
2%
828
829
Other/Headquarters
167
22%
167
25%
532
71%
468
69%
50
7%
42
6%
749
677
Other/Headquarters includes Schibsted Data & Tech. The system is unable to split employee categories by age group; these figures have therefore been excluded from the report.
Gender ratio at Schibsted
In Schibsted, we firmly believe that gender balance in the
workplace and in leadership teams is a critical success factor in
making better decisions and developing more innovative business
solutions. Our Board (shareholder-elected) is composed of
38 percent women (2020: 38) in line with the Norwegian Limited
Liabilities Companies Act for companies having eight shareholder-
elected board members.
In 2017 Schibsted set a target of a 60:40 gender ratio for the three
top management levels by the end of 2020, and this goal was
achieved. Some of our organizations still have gender ratio goals,
but as a group we are now pursuing targets based on a wider
definition of diversity and looking at how we can unlock the
potential of diversity to create value. We will, however, continue to
report on gender ratio in our sustainability report.
The proportion of women in top management positions, that is, in
the management groups in all companies in Schibsted, was
39 percent (2020: 38). The proportion of women among other
managers was 42 percent (2020: 42). The overall gender ratio at
Schibsted was 39 percent women (2020: 37).
Prior to 2021 we focused on setting up a common process for
performing an annual mapping of a potential gender pay gap for all
Schibsted companies in Sweden. The aim was not only to make
mapping of a potential gender pay gap easier, but also to improve
quality and find better tools for performing comparisons and
analyses across the Group.
For 2021 we performed a mapping of a potential pay gap for all
Schibsted companies within scope in Norway.
The HR departments in each company are responsible for this
process, partnering with the Compensation and Benefit
department to provide support in discussions on conclusions as
well as on regulations and methods. To support our development
and analysis in this area, we cooperate with the trade unions and
have implemented a new online tool. In addition to identifying
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
35
salary differences between genders, we also take a closer look at
the gender balance in managerial positions, professions or
divisions. With this new set-up we have seen an improvement in the
quality of potential gender pay gap mapping and an increase in the
number of companies that have conducted these investigations.
This work will continue in 2022.
For Schibsted ASA's compliance with the activity duty in the
Equality and Anti-Discrimination Act, see separate report on:
https://schibsted.com/sustainability/.
Skills development and performance reviews
To ensure innovation, long-term sustainable growth, and an
attractive workplace, we need to offer good opportunities for skills
development and performance reviews to our employees. We need
to create an environment where sharing our knowledge internally
is a natural part of our working life. We believe in fostering a growth
mindset and continuous learning, and in empowering employees
to drive their own development and growth.
Our global people function offers several training courses through
the Schibsted Learning Lab. The Learning Lab supports a common
culture of innovation, collaboration and knowledge sharing to help
Schibsted's employees succeed and perform their very best. The
training is divided into different subjects such as sustainability,
product development, analytics and tech, editorial training,
communication and facilitation, sales academy, language, and
more. In 2021 most of the training was conducted digitally due to
the COVID-19 situation, but also to ensure that the learning
initiatives were offered to as many Schibsted employees as
possible, regardless of location. The total number of hours of
training provided through our internal learning platform was
22,059 (2020: 9,324) and the number of participants was 5,721
(2020: 2,987). This means an average of 3.9 hours (2020: 1.8) of
training was provided per employee (using FTEs for calculation).
The average score from the attendants was 8.8 out of 10 on the
evaluation question "How satisfied are you with the training
overall?"
In February 2021 all Schibsted employees got access to LinkedIn
Learning and more than 16,000 digital courses where they can
deep-dive into specific topics, take short courses, and view brief
learning videos that only take a couple of minutes. At the end of
2021, we had 2,125 activated users.
This was in addition to training provided in the subsidiaries and by
external suppliers that was not tracked. Our ambition is to track all
training hours in the future. The plan for 2022 is to implement a
group-wide Learning Management System (LMS).
The Learning Lab conducted an internal mentor program during
2021. The purpose of the program was to strengthen leadership
skills in current and future leaders and specialists, focusing on
personal and professional development, as well as on networking.
In the program, mentors, individuals holding senior positions as
managers and/or specialists, are matched with mentees, high-
potential individuals with high ambitions and growth aspirations.
The program kicked off with an introductory session on mentoring
after which the mentor and the mentee met several times
throughout the year, discussing different topics related to growth.
There were 25 mentors in total, including the Schibsted Executive
Management Team, and 25 mentees participated in the program.
The yearly Schibsted Future Advisory Board program continued in
2021 with 12 employees selected to work on strategic issues for the
Schibsted Executive Management Team. The purpose is to give
management valuable input, strengthen our innovation capability
with talented and aspiring Schibsted employees, and contribute to
talent development and cross-functional collaboration. The
participants will earn two certificates from Harvard Business
School Online, one in disruptive innovation and one in strategy
execution. The program will be put on hold until 2023.
Schibsted also initiated an internal program to boost
implementation of sustainability throughout the organization in
2020. In 2021, as in 2020, fifteen employees were appointed as
Sustainability Change Makers. The changemakers will allocate 10
percent of their working hours per year to the program. During the
program, the participants have completed a university course in
sustainable business management at Cambridge University,
supported reaching the sustainability ambitions and targets in the
strategy, and acted as internal hubs to entrench the sustainability
perspective in our business operations. The program will be
evaluated before possible continuation in the fall of 2022.
In November 2021 a group-wide performance development
toolbox, Grow, was implemented to empower our employees to
drive their own development and growth. The core pillars of Grow
are regular check-ins between managers and employees, fostering
a feedback-rich culture with structured development talks with
clear development goals for all employees. According to our policy,
all employees should complete development dialog with their
managers at least once a year. In 2021, 88 percent of our employees
completed performance reviews with their manager (2020:
89 percent). With the new toolbox, Grow, the data collection will be
streamlined with a higher quality from 2022.
To evaluate our role as an employer, we conduct employee
surveys. In 2021 we ran quarterly surveys with our implemented
tool ACT. In 2021 the employee satisfaction scores for our
companies continued to show a high score (82), despite the
continuation of the COVID-19 pandemic. We are delivering beyond
our target of 80 and compared to international benchmarks, we are
in the top 10 percent best companies. In 2022 we aim to maintain
this high score (target 80).
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
36
Performance reviews by gender and employee category
Total
number
Rate %
Total
number
Rate %
2021
2020
Total
4,521
88%
4,615
89%
Male
2,695
85%
2,792
86%
Female
1,832
93%
1,823
95%
Company top
management
206
88%
167
67%
Other leaders
631
99%
666
97%
Other employees
3,684
86%
3,782
89%
The rate of performance and career development reviews by gender is based on the
total number of employees and the numbers of male and female employees at Group
level. The rate per employee category is based on the total number of employees in
each employee category. The companies Verdens Gang AS and Schibsted Sverige AB
are excluded from thi year's reporting due to insufficient data but will be reporting
again next year.
A safe and healthy working environment
To ensure an attractive workplace and to retain our employees, we
are constantly making improvements so that we can provide a safe
and healthy working environment that facilitates work-life
balance, minimizes stress, prevents physical accidents, and
protects employee integrity. In 2021, the average sick-leave for all
our companies was three percent (2020: 3).
Several work-life balance and flexible working arrangements are in
place, though they vary across our countries of operation. Inspired
by our Scandinavian roots, most of our locations offer fitness
activities and wellness grants, generous paid vacation and parental
leave as well as flexible working hours and flexible workplace
schemes to facilitate, for example, combining work and parenting.
Parental leave
Male
Female
Male
Female
2021
2020
Employees entitled to
parental leave
3,473
2,217
3,254
1,927
Employees that took
parental leave of more
than one month
205
214
143
160
Employees that returned
to work during the year
182
139
108
84
The COVID-19 situation
Schibsted has continued handling the COVID-19 situation with the
established crisis team to quickly act on advice from health
authorities in our markets. Adequate measures were swiftly
implemented as the situation developed. Guidelines and policies
have been continually updated and made available.
All in all, Schibsted has succeeded in implementing measures to
reduce the risk of infection carrying out its operations. The
following measures were implemented:
• Most employees worked from home
• A COVID-19 help-desk was established
• New travel policy reducing travel to a bare minimum
• Mental, medical and ergonomic aid provided
• Digital workouts and inspirational sessions provided
• Training in online tools for both managers and employees
• Schibsted Express: home delivery of necessary office equipment
• Working-from-home community established to share tips and
stories about working from home, including ideas for social
interaction.
Rethinking the way we work: the hybrid pilot
There is no such thing as ‘business as usual’ anymore. Change has
been supercharged in the pandemic accelerator and we have all, as
individuals and organizations, been forced to adapt to a new world
of work. This leaves the question: where do we go from here?
In Schibsted we believe in a hybrid workplace environment where
our workplace is more than just an office; it is a whole ecosystem
encompassing anywhere we work together. Whether employees
work from the office or remotely, we will support future work styles
by providing a sustainable environment that nurtures
collaboration, creativity, and innovation. Reduced travel activity
will be a central element. We believe this will deliver employee
satisfaction, high performance, and ongoing business growth.
When asking our employees what they wanted, the message was
clear: “We want change and flexibility”. Over 80 percent of our
employees wanted either a hybrid way of working or even full-time
remote working. According to 82 percent of our employees, the
main reason for going to the office in the future would be to
socialize and collaborate. Our employees have increased efficiency
while working at home, and on average save one to two hours (and
a lot of stress) on their daily commute, while also generating less
travel-based emissions.
With this as a starting point, we launched Schibsted@Work to
prepare the organization for a large-scale hybrid pilot, testing and
experimenting before making major changes across the
organization. Three fundamental policies for the project have been
put in place:
• Employee categorization policy, introducing three worker
categories: office, hybrid, and remote worker. All hybrid and
remote workers will be supported with furniture and IT
equipment to ensure productivity. HOMEsted, a new online
portal, will allow employees to order ergonomic furniture
directly to their home office.
• Place of work policy introducing a clear, consistent, and
common approach to the question “Where can I work from?”
There are tax and pension issues involved in working abroad, so
this policy was made to support flexibility but simultaneously
ensure compliance with all relevant regulations.
• Global travel policy. We will travel far less in the future, and we
will travel for different reasons. This policy will be the
cornerstone for safe, sustainable and smart travel for all of
Schibsted.
We believe that the main purpose of the office has changed into
one of collaboration, innovation, and socializing, but that the office
still plays a crucial part in our new workplace ecosystem. We want
to create offices where we want to spend time. We have chosen not
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
37
to make massive changes and investments; however we made
changes to furniture that promote collaboration while catering for
more video and hybrid meetings. We also set up several
experiments to test more advanced meeting technology during the
pilot.
We believe digital collaboration is crucial in a hybrid environment.
Technical infrastructure was already in place in Schibsted to
enhance digital collaboration, with a video conferencing system for
both small and large meetings, document sharing through Google
Workspace and the Slack instant messaging tool. Online workshop
collaboration tools were also evaluated and implemented in 2021.
To ensure a more inclusive hybrid culture, we need to test a range
of different tools that also enhance inclusion in hybrid meetings,
and have set up a range of different experiments.
The responsibilities of business leaders have dramatically changed
with the COVID-19 pandemic. They needed to build the capacity to
thrive in a new reality while maintaining innovation and high
performance. The project has supported leaders with a common
direction, management kits to support management discussions,
common workshops for all Schibsted leaders, and hybrid
leadership training provided through the Learning Lab. The
Schibsted PACE leadership principles and behaviors stand firm:
People driven, Agile, Collaborative, and Entrepreneurial. We need
leaders with the mindset, skills and tools to lead effectively in an
autonomous workplace. Leaders need to empower their
employees to perform, embrace change, and build relationships of
trust, respect and transparency.
The Schibsted@Work pilot is scheduled to run until May 2022
(depending on when we can return to the office), with the findings
being carefully assessed prior to making a final decision. Schibsted
is committed to using this project to help craft a workplace that
delivers satisfaction, opportunities and results for both individual
employees and the organization.
Health and safety in our operations
Each company is responsible for conducting a risk assessment
identifying occupational health and safety risks. Operations at the
printing plants and newspaper distribution units pose the highest
risk of work-related injuries, while our offices pose the risk of ill
health in the form of stress. In 2021, 26 (2020: 27) injuries were
reported in our printing and distribution operations. These were
mainly incidents in connection with delivering newspapers and
minor personal injuries.
In 2022 we will conduct a project to investigate how all our
companies are complying with strict national regulations in this
area. We will examine how well the risk-based approach is
implemented and how systemized the approach of informing,
preventing, and identifying risks related to health and safety are in
all our companies.
Health and safety in our printing and distribution
operations
All workers hired by Schibsted Trykk (printing) and Distribusjon
(distribution) are covered by our systematic approach to
evaluating, preventing, and communicating procedures and to
following up identified health and safety risks. All operations within
Schibsted Trykk and Distribusjon have a designated health and
safety committee. Employees and management alike are
represented on the committee, together with external
representatives from the occupational health service, and they
meet on a quarterly basis or more often if needed. In the regular
meetings, in which appointed employee representatives
participate, we oversee our systematic work on health and safety,
review incident records and identify areas for improvement.
For Schibsted Trykk, relevant information about health and safety
is communicated to employees through a real-time updated
electronic health and safety handbook, regular e-mail updates,
and meetings. The handbook contains an overview of laws,
regulations and internal procedures for health and safety work. A
portal is also available to employees for contacting the health and
safety committee and the safety representative.
For Schibsted Distribusjon, relevant information about health and
safety is communicated to the employees and carriers through
newsletters, trade unions, and managers.
Appointed representatives and other workers in daily operations
are trained in health and safety on a regular basis. In general, no
external parties are involved in our preventive and reactive health
and safety work, but external consultants may be involved when
deemed necessary.
In Schibsted Trykk (printing) regular health checks are performed
by the occupational health service to systematically reveal and
address the health risks at individual level and to assess the
working environment in general.
In Schibsted Distribusjon quarterly assessments of local
operations are used to identify risks and to follow up reported risks.
In addition to these local assessments, new investments are
assessed to prevent incidents, and meetings are held at least once
a year with regional representatives and management. All
employees are provided with adequate protective equipment.
The main risks for workers within our distribution network relate to
fall accidents in bad weather conditions and threats during night-
time distribution. All employees are informed about these risks and
receive continuous information on how to prevent them and how
to handle them should they occur. All employees receive clear
instructions on how to handle emergency situations. These
situations shall be reported directly to the manager and, if needed,
to the police. The manager shall register all incidents and their
underlying causes. Employees involved in such incidents will, if
considered necessary, either be placed on sick leave to recover or
be moved within the organization to a position where they feel
safe.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
38
Material aspect: Diversity, inclusion and belonging (DIB)
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Ranked as the most diverse and equal
employer within our segments.
○
Work on gender pay gap initiated
but not completed. Will be
continued in 2022.
Raised ambition levels decided by
the Group Executive Team.
Recruitment of a Head of Diversity,
Inclusion and Belonging to
structure and lead further work.
Mapping of current situation
completed in one company,
initiated in the other two and will
be finalized in 2022.
Employee engagement survey with
specific question on diversity,
inclusion and belonging
accomplished and outcome
concluded. Self-assessment tool
postponed until 2022.
A plan to fill the potential gap
between the ambition and targets
and the current situation
postponed until 2022. Awaits the
conclusions from the remaining
mapping.
Ambition (long term)
• Become a mature organization in
diversity, inclusion, and belonging and
be a leading voice in our society.
Linked SDG Target
• Ensure women's full and effective
participation and equal opportunities
for leadership at all levels of decision-
making in political, economic and
public life (5.5).
• Ensure equal opportunity and reduce
inequalities of outcome, including by
eliminating discriminatory laws,
policies and practices and promoting
appropriate legislation, policies and
action in this regard (10.3).
◐
◐
Linked SDG Target
• Ensure women's full and effective
participation and equal opportunities
for leadership at all levels of decision-
making in political, economic and public
life (5.5).
• Ensure equal opportunity and reduce
inequalities of outcome, including by
eliminating discriminatory laws, policies
and practices and promoting
appropriate legislation, policies and
action in this regard (10.3).
Target 2021
• Continue rollout of gender pay gap
project.
• Redefine and raise our ambition and
targets for diversity, inclusion, and
belonging.
• Establish a cross-functional project
that will lead the work.
• Map the current situation in three of
our companies as pilots.
• Map the current situation throughout
Schibsted through the employee
engagement survey tool and a self-
assessment tool.
• Based on the mappings, define a plan
to fill the potential gap between the
ambition and targets and the current
situation.
◐
●
●
◐
◐
○
Target 2022
• Continue rollout of a system for gender
pay gap mapping in all markets and
work on the results across the Group.
• Collaborate with partners on developing
a diversity index.
• Establish a training program for
managers on how to lead diversity.
• Finalize the mapping of the current
situation in the two remaining
companies as pilots.
• Map the current situation in all
Schibsted companies from a
management perspective through a self-
assessment tool.
• Create a DIB framework for Schibsted
(what, how and why).
• Establish a DIB playbook for the whole
employee life cycle.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
39
Material aspect: Health, safety and integrity of employees
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Be the leading employer in our
industries.
◐
Health and safety included as a
guiding principle in the Future of
Work project.
Changemaker project initiated to
streamline health and safety work
in all our markets.
Launch of a health management
system for the Norwegian
operations postponed until a new
project aimed at streamlining and
covering all our markets is
initiated.
Ambition (long term)
• Be the leading employer in our
industries.
Linked SDG Target
• Protect labor rights and promote safe
and secure working environments for
all workers, including migrant
workers, in particular women
migrants, and those in precarious
employment (8.8).
◐
Linked SDG Target
• Protect labor rights and promote safe
and secure working environments for all
workers, including migrant workers, in
particular women migrants, and those in
precarious employment (8.8).
Target 2021
• Continue our Future of Work project,
in which health and safety is a guiding
principle.
• Launch of health management system
for our Norwegian operations.
●
○
Target 2022
• Testing a hybrid work model for the
whole of Schibsted to optimize the
future way of working.
• Implement the portal HOMEsted for
ordering home office equipment across
the Group.
• Implement a travel policy with a
sustainability and safety focus across
the Group.
• Implement one travel agency system
across the Group.
• Complete and conclude on a
changemaker project on mapping
health and safety status across
Schibsted to streamline processes and
procedures.
• Launch of a health management system
for our Swedish operations.
• Design and launch well-being initiatives
across the Group.
Material aspect: Attractive workplace
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Be the most attractive employer in our
main markets.
◐
The latest survey for 2021 (January
2022) on track with a score of 82. All
surveys in 2021 with a score above
the target.
Ambition (long term)
• Be the most attractive employer in our
main markets.
Target 2021
• At Group level, maintain the average
employee satisfaction score achieved
for 2020 (80).
●
Target 2022
• At Group level, maintain the average
employee satisfaction score of
minimum 80.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
40
The climate is changing and already affecting ecosystems, people
and livelihoods around the world. At Schibsted we strive to
minimize our negative environmental footprint and maximize our
positive impact by empowering people through our products and
services to make environmentally friendly choices in their daily
lives.
The direct climate footprint of Schibsted is very limited. In 2021, 94
percent of our emissions comes from indirect emissions associated
with Schibsted activities (Scope 3). Procured paper accounts for
the majority of our indirect emissions, but for a lower proportion
this year after gathering supplier-specific information and thus
improving data quality. Our direct emissions (Scope 1) come from
company-owned vehicles in our distribution fleet, and our indirect
emissions from electricity, heating and cooling in our offices
(Scope 2).
In 2020, our emissions dropped by 13 percent due to reduced paper
consumption and new habits during the pandemic. This year we
saw a slight increase of one percent in our emissions with a
marginal increase of 92 tonnes of CO2e due to increased activity in
our distribution companies, a pick-up in business travel and the
improved accuracy of emission from external data centers. Our
goal is to decrease emissions by at least
50 percent by 2030 (2018 baseline) and net zero emissions by
2050. We need to increase our efforts to be in line with the 1.5°C
pathways stated in the Paris Agreement. We will continue to work
on reassessing our emissions across Scopes 1, 2, and 3 to make sure
we take responsibility where we should and to verify that our short-
and long-term targets remain valid in a rapidly changing business
environment.
How we manage our environmental impact is stated in our Group
Environmental Policy. The policy is based on the principles of the
UN Global Compact and includes initiatives to promote greater
environmental responsibility, use of environmentally friendly
technologies and application of the precautionary approach. The
Head of Sustainability in Schibsted is responsible for our
compliance with the policy and for implementation of sound
environmental practices in all our operations. In 2021 Schibsted
scored B in the Carbon Disclosure Project (CDP) rating (2020: B). We
have performed a risk analysis in line with the TCFD framework.
Our marketplaces are the epicenter of circular
consumption
Through our marketplaces for circular consumption throughout
the Nordics and new investments in secondhand trade platforms
like Bilbasen.dk, dba.dk andPlick.se, we empower and inform
consumers to act in more environmentally friendly ways in their
daily lives. Our marketplaces are putting in significant efforts to
lower the barriers for circular consumptions, making it easy and
convenient for both buyers and sellers. Schibsted is in a unique
position with our distribution networks to facilitate a user-friendly
transaction process for all parties. Through our current and new
investments, we will continue to explore and act on circular
business opportunities that enable people to repair, reuse, share
and recycle products, with the aim of prolonging the lifetime of
existing products and reducing consumptions of resources.
Schibsted will continue to promote, develop, and communicate
the environmental benefits of circular consumption to our
stakeholders, including participation in the public debate in our
markets and in the European Union.
Material aspect: Skills development and knowledge sharing
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Offer a workplace where all
employees have the opportunity to
develop skills and contribute to
innovation.
●
LinkedIn Learning launched. Grow
(system for performance reviews,
career and development paths)
launched. New follow-up
procedures for Learning Lab
initiated on completed learning
hours, but no system was
implemented.
The Sustainability Change Maker
program continued in 2021. Some
training within sustainability
offered through Learning Lab.
Plans for a more extensive training
of employees postponed until
2022.
The Future Advisory Board
program continued in 2021.
Ambition (long term)
• Offer a workplace where all employees
have the opportunity to develop skills
and contribute to innovation.
Target 2021
• Launch a learning and development
system to follow-up completed
training, performance reviews, and
career and development paths.
• Continue the Sustainability Change
Makers Program and expand learning
opportunities within sustainability for
all employees.
• Continue the Future Advisory Board
program.
◐
●
●
Target 2022
• Develop an early career program (hire
for learnability, train for skills).
• Implement a group-wide Learning
Management System.
• Deliver organized training courses and
education programs customized to each
business area/group function/ company
aligned with Schibsted's strategic
objectives and top-rated skill
requirements for the future.
• Establish systematic talent review
including succession and workforce
planning.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
41
In 2015 we rolled out the Second Hand Effect project in cooperation
with Adevinta and the Swedish Environmental Research Institute
(IVL). This work has been driven by the fundamental question: how
much material and CO2e emissions can potentially be saved
through secondhand trade if each secondhand product replaced
the production of a new one? Since 2015, more and more
marketplaces around the world have joined the project to show the
environmental benefits of circular consumption. As of 2021, three
of Schibted's marketplaces are part of the project. The total
amount of CO2e emissions saved through our marketplaces Finn,
Blocket and Tori in 2021 was 1.2 million tonnes, 58,000 tonnes of
plastic, 0.3 million tonnes of steel and 36,000 tonnes of aluminium.
Going forward we will revisit the model and refine it based on the
most recent science and improved data quality. We will continue to
focus on maximizing our positive environmental impact through
secondhand trade. Read more about the Second Hand Effect
project at https://www.schibsted.com/sustainability/.
Energy consumption and digital services
Most of Schibsted’s revenues comes from digital consumer
services, and the digital transformation of our media operations
will continue. Digital services, such as online newspapers, financial
services, and marketplaces, consume energy at different stages of
the value chain. To further understand the impact of our digital
newspapers in terms of energy consumption and greenhouse gas
emissions, we are a part of the DIMPACT project. The project has
developed a tool for tracking carbon footprints and energy use
along our value chain for digital newspapers. The project members
include researchers from Bristol University and 17 international
media companies including BBC, Sky and Netflix. This was the
second year we ran the DIMPACT model. The model was updated
with factors that take into account the latest research within the
field. The results for 2021 are consistent with those for 2020.
Powering end-user devices such as computers, laptops, and
network equipment in our users' homes accounts for a substantial
share of emissions associated with our digital services. The
reduction in this year's results can be attributed to a reduction in
volume of streamed videos and a shift to more consumption on
smartphones consuming less energy. Thanks to the availability of
low-carbon intensive energy in Norway and Sweden and the low
level of emissions from our external cloud providers, our services
are less polluting than news media in other European countries. We
aim to calculate emissions from our e-papers, marketplaces and
financial services in addition to our online newspapers. The
insights gained so far will imply no changes to the work we do on
minimizing our energy consumption and greenhouse gas
emissions in terms of scope or priority.
Environmental impact of our office operations
In our office operations we focus on monitoring and minimizing
energy consumption and greenhouse gas emissions derived from
business travel. This year we have also included greenhouse gas
emissions from procured devices (smartphones, laptops,
computers, and monitors) used by our employees. Our emissions
from office operations (Scope 2 and 3) accounted for 17 percent of
our total greenhouse gas emissions for 2021. The largest
contributor (8 percent) was electronic devices. Emission from
devices were calculated based on emission data from device
manufacturers, excluding use phase. Smartphones, laptops, and
computers used by our companies operating in Norway, Sweden,
Finland and Poland were included. Operations in Denmark will be
added in our 2022 report. We are working on improving data
quality for procurement of monitors. Currently this only applies to
companies in Norway and Sweden. By monitoring our emissions
from IT equipment yearly, we will be able to track and better
provide incentives for prolonging the lifetime of our procured
devices. In 2022 we have a target to reduce the environmental
impact caused by our use of electronic devices.
The amount of emissions generated by our consumption of
electricity, district heating and cooling increased by two percent in
2021. This change was due mainly to increased activities in offices
and to emissions from heating due to a colder winter in 2021
compared to 2020. Energy consumed by our employees at their
home offices is not included in the scope of the report due to
limited availability and transparency of data. As most employees in
Schibsted are working hybrid and thus partly from home, we will
continue a project initiated during the pandemic to see what the
changes would imply for our changed working habits. Emissions
from our external data centers increased considerably since last
year, due to better data quality using location-based emissions
from our suppliers where this is possible to retrieve. We will
continue to work with our suppliers to gain a better understanding
of our current cloud service emissions. We have initiated a project
looking into relocating more of our data centers to northern
regions to have access to energy with lower emissions and shorter
distances to our users.
Our emissions from business travel accounted for four percent of
our total emissions. In 2020 our emissions from business travel
decreased significantly by 74 percent, compared to 2019. In 2021
we saw an increase of 23 percent as travel activity picked up. A
large proportion of travel involves short-haul flights, either
domestically or between the Nordic countries. Schibsted Global
Travel Policy was launched in October 2021, with digital first as a
guiding principle, ensuring environmentally friendly options and
streamlining a booking system for travel across Schibsted. In 2022
we will continue to increase knowledge about the travel policy to
ensure sustainable choices, and the common booking system will
be launched to more of our companies, thus improving data
collection for emissions caused by travel across our operations.
The amount of waste generated from our office operations was
significantly less than that from our printing plants, and has so far
not been a prioritized issue. We have procedures in place for the
safe handling and recycling of electronic waste. For example, in
some countries we have partnerships with companies that wipe
computer hard drives and sell them secondhand instead of
disposing of them.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
42
Energy consumption within Schibsted (MWh)
2021
2020
% change
Consumption of electricity, district heating, district cooling
31,159
30,392
3%
-of which electricity for printing plants
20,702
19,984
4%
-of which electricity for offices and internal data centers
7,325
8,456
-13%
-of which district heating for offices and internal data centers
2,747
1,611
71%
-of which district cooling for offices and internal data centers
385
341
13%
Greenhouse gas emissions (tonnes of CO2e)
2021
2020
% change
Direct Scope 1 emissions*
264
263
0%
Consumption by company-owned vehicles
264
263
0%
-of which eCommerce and Distribution in Norway
264
254
4%
Indirect Scope 2 emissions**
460
450
2%
Consumption of electricity, district heating, district cooling
460
450
2%
-of which electricity for printing plants in Norway
167
161
4%
Other indirect Scope 3 emissions
10,827
10,746
1%
Leased and privately owned vehicles
3,197
3,225
-1%
-of which eCommerce and Distribution in Norway
2,973
2,939
1%
Business travel - flights***
481
391
23%
Energy from external data centers (location-based)****
120
55
118%
Paper used for print newspapers*****
6,612
6,627
-0%
Electricity consumed by internet infrastructure to distribute our digital newspapers******
24
37
-35%
Electricity consumed by our users reading our digital newspapers******
393
411
-4%
Total (excluding added emissions)
11,551
11,459
1%
Other indirect Scope 3 emissions - Added 2021
1,068
-
-
Procured IT equipment (smartphones, laptops, computers and monitors)
1,068
-
-
Total (including added emissions)
12,619
11,459
10%
* Fuel used for company owned, leased and privately owned vehicles includes diesel and gasoline. Some of our companies have begun to shift to hybrid vehicles during the year.
** Scope 2 emissions are currently only calculated using the location-based approach.
*** The increase in business travel is explained by a pick-up in travelling after the COVID-19 pandemic restrictions.
****The significant increase in energy from external data centers is a result of better data quality using location-based emissions where available. Although a majority of data center
providers purchase Guarantees of Origin (reducing market-based emissions), reporting on location-based is the right approach for Scope 3 emission accounting when it comes to
energy.
***** Emissions caused by transport from the paper mill to Schibsted’s printing plants are not included in the supplier-specific emission factors and had to be estimated on the
basis of an average. The 2020 figures are restated due to the availability of supplier-specific emission factors.
******2020 figures are restated due to changes in the model and improved accuracy. Emissions from digital e-papers are not included.
2021
2020
GHG intensity, tonnes CO2e emissions/turnover NOK million*
0.79
0.89
GHG intensity, tonnes CO2e emissions/employee**
2.03
2.21
2021
2020
Energy intensity, energy consumption MWh/turnover NOK million*
2.13
2.35
Energy intensity, energy consumption MWh/employee**
5.48
5.87
*Intensity figures 2020 based on revenue are restated due to adjusted Scope 3 emissions for paper and electricity related to digital newspaper consumption.
**Employee is defined as the number of employees as at 31 December 2021 (5,689). The GHG intensity figure for 2020 based on employee is restated due to adjusted Scope 3
emissions for paper and electricity related to digital newspaper consumption.
Environmental impact from our distribution
Distribution currently has operations in Norway, delivering
newspapers to subscribers and for casual sales and for newer
businesses such as HeltHjem Netthandel, Morgenlevering and
Zoopit. This accounts for 26 percent of our greenhouse gas
emissions and is the largest contributor to our direct emissions
(Scope 1) through the distribution fleet. In 2021, there was a 49
percent increase in packages delivered through the Schibsted
distribution companies. While the total amount of packages has
increased, we only see a slight increase in our emissions of one
percent from 2020. The increase is marginal given the volume of
packages delivered within our current distribution network. In
2019, our part-owned distribution company Helthjem initiated a
project to identify and minimize the organization's environmental
footprint. Helthjem mapped the organization’s material
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
43
environmental aspects and the carbon emissions generated by
distribution activities.
Based on the insights gained from this project, Helthjem has set a
target to lower greenhouse gas emissions by 50 percent by 2025.
Since 2018, Helthjem has lowered the CO2e emissions form the
network by two percent. In 2022 the network will reassess the
overall target based on a revised analysis. Initiatives related to
updating the distribution fleet and optimizing delivery routes are
the key initiatives to reach this target. Helthjem invested in electric
cars, electric bikes and Paxters (small electric vehicles), and will
continue to invest in the shift to an electric distribution fleet.
Another material aspect for Helthjem is the use of plastic for
packaging and protecting newspapers. Together with Schibsted
Trykk, Helthjem set a goal to reduce the use of plastic for protecting
newspapers by 90 percent by 2022. Since 2018, Schibsted Trykk has
decreased the use of plastics by 43 percent.
Environmental impact from our print newspapers
Schibsted publishes newspapers in Sweden and Norway, and our
aim is to reduce the environmental impact of our print newspapers.
Our paper consumption and printing activities account for more
than half of our greenhouse gas emissions. Schibsted previously
used an average data emission factor to account for greenhouse
gas emissions associated with paper. This year we collected
supplier-specific data for the different paper types, improving the
overall data quality and enabling more accurate emissions data.
This gives Schibsted better control over the climate impact of a
potential change in paper type. The data provided by suppliers also
allowed us to update the previous year's paper-related emissions.
Where available, Schibsted will continue to use supplier-specific
data and follow the recommendations of the European
Sustainability Reporting Standard's climate draft, which
recommends supplier-specific data over average values and
spend-based data.
Ninety-nine percent of the paper used for our newspapers is
certified according to FSC, PEFC, and 54 percent of the paper used
is certified according to the EU Eco label criteria. Our Swedish
media houses procure all the paper used for our newspapers but
outsource the printing and distribution operations. Demand for
print and paper consumption continued to decline in 2021 as in
previous years. Compared with 2020, total paper consumption
(measured in tonnes) fell by eight percent due to less demand for
print newspapers and to changes in paper procurement. In
contrast, our emissions remained the same due to higher emission
factors associated with each of the remaining paper grades.
Print newspapers in Norway
In Norway, Schibsted owns the printing plants and runs a
distribution network for print newspapers. All our Norwegian
printing plants are licensed under the Nordic Swan Ecolabel
scheme. In our printing operations we focus on monitoring and
minimizing our use of energy, paper, and ink as well as on reducing
waste. Processes involving hazardous chemicals take place in
closed systems, and the chemicals are recovered as far as possible.
Schibsted Trykk continues to take steps in everyday operations to
lower energy consumption, material use and emissions. During
2021 the focus has been on optimizing our printing operations and
use of paper and resulted in a reduction of paper waste by seven
percent (310 tonnes) in comparison with 2020.
In Norway we offer print newspapers for subscription and casual
sales. Our casual sales newspapers are distributed by
subcontractors who transport newspapers from the printing plant
to distribution hubs or retailers using trucks or vans. Newspaper
delivery to households is performed by our own employees or
employees in our part-owned distribution network Helthjem, using
smaller vehicles or by distributing on foot. Newspaper companies
in Norway arrange a return and recycling program to minimize
waste related to unsold newspapers in stores. These newspapers
end up in recycling plants.
Investment and relocation of Schibsted Trykk printing
operations in Oslo, Norway
In May 2021, the Schibsted Board decided to invest in relocating
our existing printing plant in Nydalen, Oslo, to Vestby. The new
facility will house our printing operations as well as Helthjem and
Schibsted Distribution. The co-location of these businesses
enables a continuation of joint transportation optimization. The
decision will have an immediate and lasting effect reducing our
energy consumption once the facility is operational in the second
quarter of 2023. Schibsted Trykk opted to move, upgrade and reuse
existing equipment from our current printing operations, thus
materially reducing the environmental impact and costs compared
to investing in new equipment. Schibsted Trykk will reduce the
area used from nearly 40,000 m2 to 9,000 m2, thus reducing energy
consumption related to heating, climate control and production.
Print newspapers in Sweden
We currently use the Swedish printing companies V-TAB and Daily
Print for printing our newspapers. V-TAB operates a system of
environmental and quality controls, and all its printing plants are
ISO 14001:2004 and ISO 9001:2008 certified and licensed under the
Nordic Swan Ecolabel scheme. Daily Print is licensed under the
Nordic Swan Ecolabel scheme. Newspaper companies in Sweden
arrange a return and recycling program to minimize waste related
to unsold newspapers in stores. The newspapers are compressed
and used for house insulation.
In 2020, we initiated a machine learning project in Sweden to
optimize the number of print newspapers in casual sales.
Simulations done in 2021 for circulation in 2020, showed significant
potential for decrease in surplus print, with a potential of 13
percent decrease resulting in 3.7 million fewer newspapers going
to waste. The work will continue further into 2022, with a new
model also taking distribution of newspapers into consideration.
SCHIBSTED ANNUAL REPORT 2021
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44
Materials used - Print newspapers Norway*
2021
2020
% change
Paper**
Thousand tonnes
32.7
35.4
-8%
GHG emissions generated by
production of paper
Tonnes CO2e
4,914
4,869
1%
-of which
Share of certified FSC
%
100%
100%
0%
Share of certified PEFC
%
100%
100%
0%
Share of certified EU Eco label
%
43%
67%
-36%
Printing ink***
Thousand tonnes
0.9
0.8
0.1
-of which
Accepted by Nordic Swan Eco label scheme
%
100%
100%
0%
* Material used for printing external newspapers is also included in the data and comprise 57% of the material used.
** 100% renewable material
*** Non-renewable material
Material used - Print newspapers Sweden
2021
2020
% change
Paper*
Thousand tonnes
13.5
14.9
-10%
GHG emissions generated by
production of paper
Tonnes CO2e
1,698
1,758
-3%
-of which
Share of certified FSC
%
97%
100%
-3%
Share of certified PEFC
%
97%
100%
-3%
Share of certified EU Eco label
%
82%
86%
-5%
Printing Ink**
Thousand tonnes
-
-
-
-of which
Accepted by Nordic Swan Eco label
scheme
%
100%
100%
0%
* 100% renewable material
**Non-renewable material. Data on the total amount of ink used cannot be provided by suppliers.
Printing plants Norway
Waste (tonnes)
Year
Recycled
Recovered
Other disposal
Total weight
Paper (non-hazardous waste)
2021
4,134
4,134
2020
4,355
-
89
4,444
Aluminum (non-hazardous waste)
2021
146
146
2020
119
-
9
128
Waste water (hazardous waste)
2021
2
-
-
2
2020
-
-
-
-
Ink waste (hazardous waste)
2021
13
-
13
2020
-
7
-
7
*Disposal methods are selected and reported by waste contractor. The use of water in our printing plants is limited, and the risks related to the use and disposal of freshwater in
Norway is low. Total amount of non-hazardous waste: 4,280 tonnes. Total amount of hazardous waste: 15 tonnes.
Efficiency for use of paper
2021
2020
Share of material bought used in newspapers
92%
93%
Waste (degree of sorting for waste contractor)
2021
2020
Hazardous waste
100%
100%
Non-hazardous waste
99%
98%
Waste data is limited to waste from our printing plants in Norway, which accounts for the majority of our waste. Disposal methods are selected and reported by waste
contractors.
SCHIBSTED ANNUAL REPORT 2021
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Material aspect: Empower circular and sustainable consumption
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• By leading innovation in empowering
people to make sustainable choices
and enabling circular consumption,
we aim to double our positive impact
on society and the environment for
our marketplaces by 2023.
●
Investments in circular
consumption business
accomplished.
Circular consumption identified as
an interesting track in eCommerce
and Distribution.
Significant development efforts to
make transactions in generalist
marketplaces more convenient
and easier for both sellers and
buyers.
Second Hand Effect Project results
published in May.
Blocket has included CO2e
emissions saved per ad in
products.
Initiated dialog with policymakers
on circular consumption in the
Nordics and in the EU.
Ambition (long term)
• By leading innovation in empowering
people to make sustainable choices and
enabling circular consumption, we aim
to double our positive impact on society
and the environment for our
marketplaces by 2023.
Linked SDG Target
• By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse (12.5).
• By 2030, ensure that people
everywhere have the relevant
information and awareness for
sustainable development and
lifestyles in harmony with nature
(12.8).
●
●
Linked SDG Target
• By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse (12.5).
• By 2030, ensure that people everywhere
have the relevant information and
awareness for sustainable development
and lifestyles in harmony with nature
(12.8).
Target 2021
• Continue to develop our
marketplaces to facilitate circular
consumption, and identify, realize,
and invest in circular business
opportunities
• Continue to promote, develop, and
communicate the environmental
benefits of circular consumption to
our stakeholders, including
participation in the public debate in
all our markets and in the European
Union.
●
●
Target 2022
• Continue to identify, realize and invest
in circular business opportunities.
• Continue to promote, develop and
communicate the environmental
benefits of circular consumption to our
stakeholders, including participation in
the public debate in all our markets and
in the European Union.
Material aspect: Energy use and greenhouse gas emissions
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Ambition (long term)
• Lower our greenhouse gas emissions
in line with Science Based Targets by
at least 50 percent by 2030, and reach
net-zero emissions by 2050. Double
our improvements in energy efficiency
by 2030.
◐
Changemaker project on DIMPACT
presented to the Data & Tech
organization for further actions.
TCFD risk analysis and a report
completed for 2021.
Ambition (long term)
• Lower our greenhouse gas emissions in
line with Science Based Targets by at
least 50 percent by 2030, and reach net-
zero emissions by 2050. Double our
improvements in energy efficiency by
2030.
Linked SDG Target
• By 2030, double the global rate of
improvement in energy efficiency
(7.3).
◐
Linked SDG Target
• Define a detailed plan on how to reach
the emission and energy reduction
targets in line with Science Based
Targets (SBT) by 2030
• By 2030, double the global rate of
improvement in energy efficiency (7.3).
SCHIBSTED ANNUAL REPORT 2021
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46
Material aspect: Managing materials and waste
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2021
Ambition (long term)
• Ensure circular and environmentally
friendly use of materials throughout
our value chain by 2030.
◐
Cooperation with Amedia and
Polaris (Norway) initiated to
discuss the environmental impact
of using paper. Plans for dialog
with suppliers postponed due to
other priorities in the cooperation.
No dialog initiated in Sweden.
Changemaker project presented to
the Data & Tech organization for
further action. Emissions from
electronic devices included in
emissions for 2021.
Since 2018 Schibsted Trykk has
decreased the use of plastic
packaging for newspapers by 43
percent.
Machine learning project
performed with good results both
financially and environmentally.
Ambition (long term)
• Ensure circular and environmentally
friendly use of materials throughout our
value chain by 2030.
Linked SDG Target
• By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse (12.5).
◐
Linked SDG Target
• By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse (12.5).
Target 2021
• Initiate dialog with suppliers
regarding sustainably sourced paper
and printing services in Sweden and
Norway.
• Initiate a project aimed at reducing
the environmental impact caused by
our use of electronic devices
(smartphones, laptops, monitors),
focusing on energy efficiency, circular
capacity, waste management, and
lifespan of devices.
• Within our newspaper distribution
network in Norway, reduce the use of
plastic packaging for newspapers by
90 percent by 2022.
• Implement a machine learning
analysis to reduce the number of print
newspapers in casual sales.
◐
●
◐
●
Target 2022
• Continue dialog with suppliers
regarding sustainably sourced paper
and printing services in Sweden and
Norway.
• Deliver at least one initiative aligned
with Science Based Targets aimed at
reducing the environmental impact
caused by our use of electronic devices
(smartphones, laptops, monitors),
focusing on energy efficiency, circular
capacity, waste management, and
lifespan of devices.
• Within our newspaper distribution
network in Norway, reduce the use of
plastic packaging for newspapers by 90
percent by 2022.
• Implement sustainable practices across
then new print facility in Vestby,
Norway.
Material aspect: Energy use and greenhouse gas emissions (continued)
Definition 2021
Fulfillment 2021
Progress 2021
Definition 2022
Target 2021
• Based on findings from the DIMPACT
project together with Bristol
University, implement an action plan
aimed at lowering emissions
throughout our digital value chain.
• Perform a risk analysis in line with the
TCFD framework.
• Initiate a training program for UX
designers and developers to
understand the environmental impact
of digital products.
• Within our newspaper distribution
network in Norway, continue our plan
to reduce CO2e emissions by 50
percent by 2025.
• Perform an updated analysis of the
climate impact of the distribution of
newspapers through our partly-
owned distribution company in
Sweden.
●
●
●
○
○
Training performed with
approximately 100 UX designers in
Schibsted and a training session for
25 product managers on a similar
topic.
For the newspaper distribution
network in Norway, the agenda
was reframed and the detailing out
the targets was initiated.
An analysis of the climate impact
for the newspaper distribution
network in Sweden was not
performed. New regulation in
Sweden initiated a decision to go
all electric on the vehicles in the
last-mile distribution network by
2022/2023.
Target 2022
• Aligned with Science Based Targets
(SBT), incorporate ambitions,
guidelines, and recommendations for
calculating carbon footprint using the
DIMPACT tool in the infrastructure and
public cloud section of Schibsted's
technology strategy.
• Within our newspaper distribution
network in Norway, reassess the overall
target based on a revised analysis.
Establish emission-free distribution
within Ring 3 in Oslo, Norway. Establish
20% emission-free routes in Bergen and
Stavanger, Norway.
• In the Swedish last-mile distribution
network, replace fossil fuel vehicles with
small electric vehicles (Paxters) by
2022/2023.
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
47
This is Schibsted’s fifth sustainability report, and covers the period
from 1 January to 31 December 2021. Our ambition for this report
is to be transparent and to share our approach, performance,
progress, and targets in the area of sustainability from 2021
onward. The report has been prepared in accordance with the GRI
Standards: Core option. It constitutes Schibsted’s Communication
on Progress (COP) submission to the UN Global Compact and
follows Oslo Børs guidelines set out in the Euronext Guidelines for
Environmental, Social and Governance (ESG) reporting. Schibsted
publishes a sustainability report on an annual basis; the previous
report was published on 26 March 2020. The report is not quality
assured by an external body. The sustainability information is
provided mainly in the sustainability report, but also in sections of
the annual report. Please see the GRI Content Index for further
guidance.
Changes in reporting
Schibsted is reviewing its methodology for reporting on employee
hires and turnover to improve data quality. Hence the indicator
(GRI 401-1) is not included in this year's report.
The 2020 figures for emissions from paper used for print
newspapers, electricity consumed by our users reading our digital
newspapers and electricity consumed by internet infrastructure to
distribute our digital newspapers have been restated due to
improved data quality. This also results in a restatement of the
2020 GHG intensity per turnover NOK million and per employee.
Scope and boundaries
The report includes data pertaining to companies with more than
25 employees, of which Schibsted has had full ownership or
operational control throughout the year, with certain scope
limitations included below. In total, 39 companies fall within this
scope. Adevinta is excluded from the report, and sustainability
information related to its operations is presented in Adevinta’s
stand-alone sustainability statement. The Danish marketplaces are
excluded because the company has not been owned by Schibsted
for the full year 2021 but will be included in next year’s report.
Data was gathered through central management systems or
functions if no other information is stated.
Employee data
All companies within the reporting scope are included in employee
data. Total numbers of injuries are reported only for Schibsted
Trykk (printing) and Distribusjon (distribution) due to legal
limitations in gathering personal data. Data relating to employee
engagement, collective bargaining agreements, parental leave,
health and safety, and performance and career reviews was
collected via templates completed by each company. This data is
stated as head counts. Other employee data, as per 31 December
2021, is stated as full-time equivalents (FTEs) and covers all
Schibsted companies, including those which do not fall within the
scope of this report except for the Danish marketplaces acquired in
2021. This is because we want to present the same FTE information
as in the annual report. Data as per 31 December 2021 was
compiled using the financial reporting system.
Environmental data
The consolidation approach for environmental data is operational
control, and the base year is 2018. All greenhouse gases are
included in the emission calculations and all scopes are included in
intensity data. The new Scope 3 category IT equipment is excluded
to allow comparison with last year's outcomes. Data is collected
both centrally (collectively for several companies) and locally via a
sustainability reporting software and derives from third-party
sources and available internal reporting data. Our calculations are
based on conversion factors directly provided by suppliers, from
the IEA or other sources when necessary. Some of Schibsted’s
magazine offerings are produced at external printing plants in
Europe and currently not part of the scope. Depending on the data
quality, we aim to include these emissions in our carbon
accounting from next year onwards. Schibsted will also continue to
conduct regular scoping of material Scope 3 emissions.
Omissions
102-8: Data on employment contract and employment type
cannot be split due to limitations in our reporting system.
103-3: Management approach – sustainable investments: A new
structure for evaluating performance is under development and
cannot be shared in this report.
205-2: A new structure for evaluating performance is under
development and cannot be shared in this report.
302-1: Total fuel consumption from renewable/non-renewable
sources cannot be disclosed due to limitations in the information
provided by suppliers.
403-1-403-7, 403-9, 403-10: Schibsted has chosen transition to
the new GRI Standard 403: Occupational Health and Safety (2018)
and therefore does not have all the information and data in place
to fulfill all the requirements this year.
405-1: Data on age by employee category cannot be split due to
limitations in our reporting system.
Point of contact
If you have any questions about the sustainability report, you are
welcome to contact Britt Nilsen, Head of Sustainability, email
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
48
GRI Standard
Disclosure
Page
Notes
GRI 102: GENERAL DISCLOSURES (2016)
Organizational profile
102-1 Name of the organization
102-2 Activities, brands, products, and services
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form
102-6 Markets served
102-7 Scale of the organization
102-8 Information on employees and other workers
102-9 Supply chain
102-10 Significant changes to the organization and its
supply chain
102-11 Precautionary principle or approach
102-12 External initiatives
102-13 Membership of associations
3
3, 7-8
9
3, 7-8, 31
50
3
3,34, 58-60
31-40, 47
20
5, 20
19
20-21
20-21
Omission
UNGC Principle 7
102-14 Statement from senior decision-maker
14
i
102-16 Values, principles, standards, and norms of
behavior
17-18
102-18 Governance structure
18
102-40 List of stakeholder groups
102-41 Collective bargaining agreements
102-42 Identifying and selecting stakeholders
102-43 Approach to stakeholder engagement
102-44 Key topics and concerns raised
16
32
15
15-16
16
UNGC Principle 3
102-45 Entities included in the consolidated financial
statements
102-46 Defining report content and topic boundaries
102-47 List of material topics
102-48 Restatements of information
102-49 Changes in reporting
102-50 Reporting period
102-51 Date of most recent report
102-52 Reporting cycle
102-53 Contact point for questions regarding the report
102-54 Claims of reporting in accordance with the GRI
Standards
102-55 GRI content index
102-56 External assurance
47, 64
15
15
47
47
47
47
47
47
47
48-49
47
GRI 200 ECONOMIC STANDARDS
Schibsted topic: Fair business practice
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
15, 18-19
UNGC Principle 10
GRI 205: Anti-corruption
205-2 Communication and training about anti-
corruption policies and procedures
19-20, 47
Omission
Schibsted topic: Sustainable investments and ownership
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
18-19, 47
Omission
SCHIBSTED ANNUAL REPORT 2021
SUSTAINABILITY REPORT
49
GRI Standard
Disclosure
Page
Notes
GRI 300 ENVIRONMENTAL STANDARDS
Schibsted topic: Empower circular and sustainable consumption
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
40-41
Own KPI
Potential savings of CO2e and material through
enablement of circular transactions
40-41
Schibsted topic: Energy use and greenhouse gas emissions
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
41-44
GRI 305: Emissions (2016)
GRI 302: Energy (2016)
305-1 Direct (Scope 1) GHG emissions
305-2 Energy indirect (Scope 2) GHG emissions
305-3 Other indirect (Scope 3) GHG emissions
305-4 GHG emissions intensity
302-1 Energy consumption within the organization
302-3 Energy intensity
42, 47
42, 47
42, 47
42
41-42, 47
42
UNGC Principles 7, 8
Omission, UNGC
Principles 7, 8 and 9
Schibsted topic: Managing materials and waste
GRI 103: Management Approach (2016)
GRI 301: Materials (2016)
GRI 306: Effluents and Waste (2016)
103-1 to 103-3 Management approach
301-1 Materials used by weight or volume
306-2 Waste by type and disposal method
42-44
44
44
UNGC Principle 8
GRI 400 SOCIAL STANDARDS
Schibsted topic: Independent and high-quality journalism
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
26-27
UNGC Principle 1
Schibsted topic: Empower people to make informed choices
GRI 103: Management Approach (2016)
Own KPI
103-1 to 103-3 Management approach
Media literacy
27-29
27-29
Schibsted topic: Privacy and protection of user data
GRI 103: Management Approach (2016)
GRI 418: Customer Privacy (2016)
103-1 to 103-3 Management approach
418-1 Substantiated complaints concerning breaches of
customer privacy and losses of customer data
24-25
24-25
Schibsted topic: Diversity, inclusion and belonging
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
32-34
UNGC Principle 6
GRI 405: Diversity and Equal Opportunity (2016)
405-1 Diversity of governance bodies and employees
32-34, 47
Omission
Schibsted topic: User safety and fraud protection
GRI 103: Management Approach (2016)
GRI 417: Marketing and Labeling (2016)
103-1 to 103-3 Management approach
417-2 Incidents of non-compliance concerning product
and service information and labeling
25-26
25-26
Schibsted topic: Health, safety and integrity of employees
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
36-37
GRI 403: Occupational Health and Safety (2018)
GRI 403: Occupational Health and Safety (2018)
GRI 403: Occupational Health and Safety (2018)
Own KPI
403-1 to 403-7 Occupational health and safety
403-9 Work-related injuries
403-10 Work-related ill health
Sick leave
36-37, 47
36-37, 47
36-37, 47
36
Omission
Omission
Omission
Schibsted topic: Attractive workplace
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
30-31, 36
UNGC Principle 6
GRI 401: Employment
401-3 Parental leave
36
Schibsted topic: Sustainable supply chain
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
20
UNGC Principles 1,
2, 4 and 5
Schibsted topic: Skills development and knowledge sharing
GRI 103: Management Approach (2016)
GRI 404: Education and training (2016)
103-1 to 103-3 Management approach
404-3 Percentage of employees receiving regular
performance and career development reviews
31-32, 35
35
UNGC Principle 6
Schibsted topic: Responsible marketing
GRI 103: Management Approach (2016)
103-1 to 103-3 Management approach
26
GRI 417: Marketing and Labeling (2016)
417-2 Incidents of non-compliance concerning product
and service information and labeling
26
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
50
Good corporate governance is an important prerequisite for
achieving Schibsted Group’s vision and strategy. Sound corporate
governance contributes to the Group’s long-term value creation at
the same time as it utilizes the Group’s resources in an efficient and
sustainable manner. Our corporate governance defines the
business framework within which all activities in the Group should
operate, and clarifies the roles and responsibilities of governing
bodies in the Group.
Schibsted is a publicly listed company traded on Oslo Børs with a
governance structure based on Norwegian law. The company is
subject to corporate governance reporting requirements as
defined in the Norwegian Accounting Act, section 3-3b and the
Norwegian Code of Practice for Corporate Governance (the Code)
available at nues.no. Schibsted has adopted the Code, and the
Board of Directors’ Statement of Corporate Governance follows the
structure of the Code. The details on how Schibsted complies with
the Code are accounted for in this report on corporate governance
and deviations from the Code are set out in section 16 below. This
statement also includes information on corporate governance,
pursuant to the Accounting Act, section 3-3b.
Schibsted’s purpose as defined in its Articles of Association is:
“... to engage in the information business and related business
activities. The shareholders shall enable the Company to operate its
information business in such a way that editorial freedom and
integrity are fully ensured. The requirement for editorial freedom
and integrity shall apply to all media and publications encompassed
by the Norwegian and international activities of the Schibsted
Group.”
The Articles of Association are presented in full at
www.schibsted.com/ir/corporate-governance/.
Schibsted’s Board of Directors is responsible for defining
objectives, strategies and risk profiles for the Group’s business
activities. The Board of Directors evaluates these objectives,
strategies and risk profiles on a yearly basis.
The Group’s objectives, principal strategies and risks are described
in the Board of Directors' report.
Schibsted’s sustainability strategy, which is aligned with the
business strategy, is to ensure that we consider and manage the
environmental and societal impacts of all our business decisions,
and through our services empower people to make economic and
sustainable choices. Schibsted aims to create value for all our
stakeholders in a sustainable way. Schibsted engages with the
significant stakeholder groups that are directly or indirectly
affected by our business. The purpose of the dialog with
stakeholders is to understand key aspects and how these impact
Schibsted’s operations. The sustainability aspects that are
material for Schibsted are based on a materiality analysis,
including our stakeholders' input, and are settled by the Board. The
Board decides annually on the ambitions and targets for the
different sustainability aspects. The targets are followed up yearly
by the Board. In addition, the Board concludes on the sustainability
risks reported. Further information on Schibsted’s sustainability
strategy, ambitions, targets, and on how we relate to stakeholders
and sustainability risks is provided in the Sustainability Report.
Financial strategy
In accordance with our shareholder policy, Schibsted’s Board of
Directors considers it crucial that shares in the company be
perceived as an attractive investment option. Schibsted’s financial
strategy implies a strong focus on profitability, innovation and
disciplined capital allocation to create long-term shareholder
value. To achieve these objectives, Schibsted has set targets for
financial gearing, NIBD/EBITDA, equity ratio and the dividend
policy. Information about our financial strategy and performance
is published on the Investor Relations page on our website and
communicated at investor presentations. More information about
the 2021 performance can be found in the Board of Directors’
report in the annual report. The Board has reviewed the Group’s
financial strategy, targets and performance, and considers the
defined and achieved performance levels adequate for the Group’s
objectives, strategy and risk profile.
Dividend policy
The Group aims to provide a competitive return based on a sound
financial position. The Board considers it essential that the
company’s shares be perceived as an attractive investment. One of
the financial targets is therefore to maximize the shareholders’
return through long-term growth in the share price and dividend.
The Annual General Meeting approves the annual dividend based
on the Board’s recommendation. The Group’s dividend policy is
described in more detail under Share Information at schibsted.com
and in the 2021 annual report.
Authorizations granted by the Annual General
Meeting
To allow flexibility in its capital management strategy,
authorizations empowering the Board to increase the share capital
by issuing B-shares and to buy back shares were granted by the
2021 Annual General Meeting. Such authorizations are granted by
the Annual General Meeting for one year at the time. The conditions
stated in the authorizations are presented below:
Authorization to increase B-share capital
I. The Board of Directors is authorized pursuant to the Public
Limited Liability Companies Act §10-14 (1) to increase the
company’s share capital by up to NOK 6,490,053. Subject to this
aggregate amount limitation, the authority may be used on
more than one occasion.
II. The authority may only be used to issue B-shares.
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
51
III. The authority shall remain in force until the Annual General
Meeting in 2022, but in no event later than 30 June 2022.
IV. The pre-emptive rights of the shareholders under §10-4 of the
Public Limited Liability Companies Act may be set aside.
V. The authority covers capital increases against contributions in
cash and contributions other than in cash. The authority
covers the right to incur special obligations for the company,
ref. §10-2 of the Public Limited Liability Companies Act. The
authority covers resolutions on mergers in accordance with
§13-5 of the Public Limited Liability Companies Act.
Authorization to buy back shares
I. The authorization is valid until the next Annual General Meeting
of Schibsted ASA in 2022, but in no event later than 30 June
2022.
II. The total nominal value of the shares acquired and held by the
company may not exceed NOK 11, 713, 051.
III. The minimum amount which can be paid for the shares is
NOK 30, and the maximum amount is NOK 1,000.
IV. The Board is free to decide on the acquisition method and
possible subsequent sale of the shares.
V. The shares may serve as settlement in the company’s share-
based long-term incentive schemes, as well as the Employee
Share Saving Plan, and may be used as settlement in
acquisitions, and to improve the capital structure of the
company. The shares may not be used in a take-over situation
cf. §6-17 (2) of the Norwegian Securities Trading Act.
Waiver of preemptive rights in the event of a
capital increase
In the event that the Board resolves to carry out an increase in the
share capital and waive the preemptive rights of existing
shareholders on the basis of a mandate granted to the Board, the
justification will be publicly disclosed in a stock exchange
announcement issued in connection with the increase in the share
capital.
Transactions involving own shares
The acquisition of own shares, in accordance with the Board’s
authorization referred to in section 3 of this statement, must take
place in the market at the stock exchange price and in accordance
with generally accepted Norwegian stock exchange practices.
Acquired shares may be sold in the market or used as settlement
for the acquisition of businesses, for the Schibsted share-based
incentive schemes and share saving programs for the Group’s
employees. The share-based incentive schemes are described in
more detail in Note 10 Share-based payment.
Schibsted’s Articles of Association include certain ownership and
voting restrictions, implemented to safeguard Schibsted’s position
as an independent media company, and to ensure that it remains
a group characterized by free, independent editorial staff,
credibility and quality and with long-term, healthy financial
development.
By virtue of its indirect shareholding in Schibsted, through
Blommenholm Industrier, the Tinius Trust has negative controlling
rights in Schibsted.
Ownership restrictions
According to Article 6 of the Articles of Association:
“No shareholder may own more than 30 percent of the shares or
vote for more than 30 percent of the total number of votes which
may be cast under the company's Articles of Association.”
Class of shares and voting rights
Schibsted has two classes of shares. Each A-share gives the right to
10 votes at the Annual General Meeting, and each B-share gives the
right to one vote at the Annual General Meeting. Otherwise, the A-
shares and B-shares carry equal rights.
According to Article 7 of the Articles of Association, certain
decisions require the approval of 3/4 of the A-shares represented
at the Annual General Meeting in addition to 3/4 of the share capital
represented at the Annual General Meeting. This applies to
resolutions to amend the Articles of Association of Schibsted and
to important decisions relating to companies in the Schibsted
Group, including amendments to the Articles of Association and
any sales of shares or operations or corresponding transactions in
any subsidiary.
Through resolutions, the Annual General Meeting may authorize
the Board to administer specific areas of the protection offered
under Article 7. A general one-year authorization to administer
such protection was granted at the 2021 Annual General Meeting
and will apply until the next Annual General Meeting. The
authorization granted at the Annual General Meeting in 2021
states:
“Pursuant to the third paragraph of Article 7 of the Articles of
Association, the Board of Directors is authorized to make decisions
on the following matters referred to in the second paragraph,
subparagraph a) of Article 7 of the Articles of Association:
a) Voting relating to amendments to subsidiaries’ Articles of
Association.
b) Decisions to sell shares or operations, including private
placements, mergers or demergers, in subsidiaries when the
net payment (sales amount, merger or demerger payment,
etc.) does not exceed NOK 4 billion after financial adjustments.
Within the framework of the Group CEO’s general authorization, the
Board of Directors may delegate its authority pursuant to this
authorization to the management.
A director appointed pursuant to the second paragraph of Article 8 of
the Articles of Association may demand that certain matters which
are covered by this authorization must nonetheless be submitted to
the General Meeting for its decision.
This authorization applies until the next Annual General Meeting.”
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
52
The shareholders exercise the highest authority through the
Annual General Meeting. The Annual General Meeting considers
and decides on matters that are important to Schibsted in a way
that reflects the shareholders’ views. The Annual General Meeting
is held within six months after the end of each financial year.
Notice
The Annual General Meeting for this year is scheduled for 4 May
2022. The notice of the Annual General Meeting and documents to
be considered are available on the Schibsted website prior to the
meeting, and are sufficiently detailed, comprehensive and specific
to allow shareholders to form an opinion on all matters to be
considered at the meeting. Shareholders not registered
electronically will receive the notice by regular mail with
information on how documents to be considered at the meeting
may be downloaded from our website. According to the company’s
Articles of Association, the registration deadline may not expire
earlier than five days prior to the meeting. In 2021 the deadline for
registration was set two days prior to the meeting.
Attendance
The Board Chair is present at the Annual General Meeting and is
available to respond to any questions. Other board members will
attend as necessary. The Chair of the Nomination Committee as
well as the company’s external auditor are also present. At a
minimum, the CEO and CFO must attend the meeting as
representatives of Schibsted executive management.
Voting
The shareholders are given the opportunity to vote on each
individual matter, including on each individual candidate
nominated for election to the company’s bodies (i.e., the Board
and the Nomination Committee).
Shareholders who cannot attend the Annual General Meeting but
who wish to exercise their voting rights may authorize a proxy by
the deadline for registration. An authorization form containing
voting instructions may also be given to the Board Chair. The
authorization form is enclosed with the notice of the Annual
General Meeting. More information on how to appoint a proxy and
how to propose resolutions for consideration by the meeting is
stated in the notice of the Annual General Meeting and on our
website at www.schibsted.com.
Agenda
The agenda is prepared by the Board, and the agenda items must
comply with Article 10 of the Articles of Association.
Minutes of the Annual General Meeting are available on our website
at www.schibsted.com.
Chairing of the Annual General Meeting
Prior to the Annual General Meeting the Board considers, taking
into account the complexity of the proposed agenda, whether an
independent person shall be proposed to act as chair of the Annual
General Meeting. In 2021, the Annual General Meeting was chaired
by Ole Jacob Sunde, Board Chair.
The Nomination Committee is regulated by the provisions in Article
10 of Schibsted’s Articles of Association, which also states the
Nomination Committee’s mandate. In addition, the company has
implemented additional guidelines for the Nomination Committee
approved by the Annual General Meeting in 2017.
The work of the Nomination Committee
The Nomination Committee prepares a recommendation to the
Annual General Meeting regarding the election of shareholder
representatives and their deputies to the Board. The Nomination
Committee has contact with shareholders, board members, and
the company’s executive personnel. The Nomination Committee’s
most important task is to continually review the Board’s overall
expertise and experience in relation to the challenges facing the
Group at any given time. The Nomination Committee also proposes
remuneration payable to the board members at the Annual
General Meeting.
Information on how to submit nominations to the Board is
available at schibsted.com.
The Annual General Meeting approves the remuneration to the
Nomination Committee. The Nomination Committee’s proposals
are explained in the Nomination Committee’s report.
Composition of the Nomination Committee
The Nomination Committee is elected by the Annual General
Meeting for two-year terms and consists of three members. The
composition of the Nomination Committee shall take into account
the interests of shareholders. The Annual General Meeting elects
the chair of the Nomination Committee.
The current members of the Nomination Committee are Kjersti
Løken Stavrum (chair), Spencer Adair and Ann Kristin Brautaset.
The current members were elected by the Annual General Meeting
on 4 May 2021 for a two-year period ending in May 2023.
The current chair of the Nomination Committee is not considered
to be independent due to her roles as board member and CEO of
the Tinius Trust and Board Chair of Blommenholm Industrier. The
other two members are considered to be independent.
See the Nomination Committee’s report for further details on the
work of the Nomination Committee.
Composition of the Board
Pursuant to Article 8 of Schibsted’s Articles of Association, the
Board must consist of six to eleven members in addition to deputy
members. The Group’s employees must be represented on the
Board by employee representatives in accordance with prevailing
agreements with the company (Representation Agreement).
The Board currently consists of 11 members, of whom eight are
shareholder representatives and three are employee
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
53
representatives. Two employee representatives are elected from
Norway and one from the country outside Norway where Schibsted
has its most extensive operations. This is currently Sweden. The
Board’s composition is compliant with the requirement set forth in
section 6-11a of the Norwegian Public Limited Liability Companies
Act, which states that the minority gender shall represent at least
40 percent of the board members. In addition to gender balance,
diversity with regard to age, education, professional background
and international experience are applied as relevant criteria in the
Nomination Committee’s consideration of Board composition.
The Annual General Meeting elects the shareholder representatives
to the Board. The Nomination Committee prepares a
recommendation of candidates for election to the Board. The
recommendation is distributed to the shareholders along with the
notice of the Annual General Meeting. The Annual General Meeting
elects the Board Chair.
The Board’s shareholder representatives are elected for a one-year
term while the employee representatives are elected for a two-year
term. Pursuant to Article 8 of the Articles of Association, any
shareholder owning at least 25 percent of the A-shares in the
company is entitled to appoint a board member directly.
Blommenholm Industrier AS, which at year-end 2021 owned 27.3
percent of the A-shares, is the only shareholder holding this right.
For the Board term starting from the Annual General Meeting in
2021 and until the Annual General Meeting in 2022, Blommenholm
Industrier AS exercised its right to directly appoint one member,
and appointed Ole Jacob Sunde as a board member. The Annual
General Meeting in 2021 elected Ole Jacob Sunde to be the Board
Chair.
More information on the individual board members is available on
our website at www.schibsted.com.
Independence of the Board of Directors
The composition of the Board ensures that it can operate
independent of any special interest. The current Board meets the
requirement set forth in the Code that the majority of shareholder-
elected board members be independent of the Group’s executive
personnel and material business, and that at least two of the
shareholder-elected board members be independent of the main
shareholders. Ole Jacob Sunde and Karl-Christian Agerup are not
considered to be independent of the main shareholders due their
respective positions as board chair and deputy board member of
the Tinius Trust. All other shareholder-elected board members are
considered to be independent.
Pursuant to section 6-27 of the Public Limited Liability Companies
Act, individual board members may not participate in the
discussion or decision of matters in which they or a closely related
party are deemed to have a major personal or financial interest.
Each board member is personally responsible for assessing
whether any such circumstances exist that may, from an objective
perspective, affect public confidence in the board member’s
independence or that may lead to a conflict of interest in
connection with a matter to be considered by the Board. Such
circumstances must be brought to the attention of the Board Chair.
The Rules of Procedure specifically mention board members’
involvement in competing businesses.
Board members’ shareholdings
The Code states that members of the Board should be encouraged
to own shares in the company. Encouraging share ownership is not
part of the Board’s current Rules of Procedures. However, the
board members' shareholdings are disclosed in Note 11
Shareholder structure of Schibsted ASA's financial statements.
Board meetings in 2021
In 2021 the Board held 11 meetings, one of which was a two-day
meeting. The Board assesses the strategic topics throughout the
year, but holds a two-day meeting in June dedicated to review of
the Company’s strategies.
Attendance at board meetings and board committee meetings in 2021:
ATTENDANCE AT MEETINGS
BOARD MEETINGS
AUDIT COMMITTEE
MEETINGS
COMPENSATION COMMITTEE
MEETINGS
Ole Jacob Sunde (Chair of Compensation Committee until June 2021)
8/8
2/2
Torbjörn Ek
7/8
Anna Mossberg
8/8
8/8
Christian Ringnes (until 6 May 2021)
2/3
3/3
Ingunn Saltbones
8/8
4/5
Birger Steen (until 6 May 2021)
3/3
3/3
Philippe Vimard (Chair of Compensation Committee from June 2021)
8/8
5/5
Finn E. Våga (until 6 May 2021)
3/3
Eugénie van Wiechen
7/8
Satu Huber (Compensation Committee member from June 2021)
8/8
3/3
Karl-Christian Agerup
8/8
8/8
Rune Bjerke (from 6 May 2021)
4/5
4/5
Hugo Maurstad (from 6 May 2021)
5/5
Hans Kristian Mjelva (from June 2021)
3/5
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
54
Role of the Board
The Board supervises the day-to-day management of the Group as
it is exercised by the CEO, and monitors Schibsted's general
activities. The Board actively participates in shaping Schibsted’s
strategy, ensuring that the businesses are properly organized and
that adequate governance, risk management and control systems
are implemented. The Board also supervises the Group's financial
performance, establishes necessary guidelines, and adopts plans
for the businesses. The Board appoints the CEO and prepares the
job description and terms and conditions for the position.
Rules of Procedure
The Board has established internal Rules of Procedure describing
the Board’s responsibilities, duties and administrative procedures.
The Rules of Procedure also state the CEO’s duties in relation to the
Board.
The Board adheres to the requirements set out in the Norwegian
Public Companies Act when dealing with agreements with related
parties. The Board will during 2022 update the Rules of Procedure
to include guidelines for how to deal with all agreements with close
associates in line with the recommendations set out in the Code.
Conflicts of interests and disqualification
A board member is obliged to notify the Chair if he/she is
considering working for or on assignment with organizations that
operate, or seek to operate, a business that competes with
Schibsted Group's current or planned business activities. The Chair
ensures that the rest of the Board and the chair of the Nomination
Committee are kept informed.
Organization of board meetings
The Board works on the basis of an annual meeting schedule that
is normally agreed at least a year in advance. The meeting schedule
includes strategic planning, business issues and supervisory
activities. The Board normally appoints the members of the
Board’s Compensation Committee and Audit Committee in the first
board meeting after the Annual General Meeting. The Company’s
Head of Legal currently serves as secretary to the Board.
The CEO, in consultation with the Board Chair, prepares matters for
consideration by the Board. Emphasis is placed on timely
preparation and distribution of documents to ensure that the
Board has a satisfactory basis for its work. Board meetings are
presided over by the Board Chair. Before every board meeting the
Board convenes for a 30-minute closed session without Schibsted’s
executive management present.
Board committees
Schibsted has established an Audit Committee and a
Compensation Committee which contribute to thorough
preparation and consideration of matters covered by the
committees’ respective mandates. The committees do not make
decisions, but monitor the work of the Group on behalf of the Board
and prepare matters for board consideration within their
respective areas.
Compensation Committee
The Compensation Committee was established in 2004, and its
members are appointed by and from the Board for a one-year term.
The current members of the committee are Philippe Vimard (chair),
Satu Huber and Ingunn Saltbones. The CEO attends committee
meetings apart from those at which remuneration of the CEO is
considered. The Company’s Compensation and Benefit Manager
serves as secretary to the Compensation Committee.
The Compensation Committee prepares matters relating to the
remuneration of the Group CEO. The committee also assists the
Board by dealing with issues of principle, guidelines, and strategies
for the remuneration of other members of Schibsted’s executive
management and of senior managers in key subsidiaries.
The committee monitors the use of long-term incentives (LTI) in
the Group and prepares the Board’s annual consideration of the LTI
programs for selected managers. For further details, see section 12
of this statement.
Audit Committee
The audit committee is another sub-committee of the Board and
serves as a preparatory and advisory body. The committee
primarily assists the board in oversight, monitoring and quality
assurance of the following main areas:
• Company’s periodic financial reports, financial statements and
other financial information made available to its shareholders
• Group’s financial reporting, accounting, risks and internal
controls, and regulatory compliance
• Appointment, performance and independence of the external
auditors
The Audit Committee was established in 2007 with its dedicated
mandate describing its scope of duties and responsibilities. The
Audit Committee’s mandate is kept current and was amended in
2021 to reflect the provisions of the newly enacted Norwegian
Auditor’s Act.
The Audit Committee members are appointed by and from the
Board for a one-year term. The members shall be independent of
the company. The current members of the committee are Karl-
Christian Agerup (chair), Anna Mossberg and Rune Bjerke. The CFO
is the management’s main representative in the Audit Committee
and attends all its meetings. The external auditor attends Audit
Committee meetings when matters within the external auditors’
area of responsibility are considered. The lead engagement audit
partner of EY, Schibsted’s external audit firm, attended all eight
audit committee meetings held in 2021. The Head of Internal
Control over Financial Reporting serves as secretary to the Audit
Committee.
Schibsted’s Audit Committee has always played an active role but
especially so during the Covid-19 pandemic to ensure that it
executed its mandate in a satisfactory manner.
The Board’s self-evaluation
The Board regularly evaluates its own work and submits a written
report to the Nomination Committee. The report forms the basis
for the Nomination Committee’s evaluation of the Board's work.
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
55
The Nomination Committee performs additional assessments of
the board members through interviews conducted either by the
committee's members or by external consultants. The Board
considers itself to work well, with members whose expertise and
experience complement each other.
The Group’s risk management and internal control systems reflect
Schibsted's governance model and are integral elements of the
overall governance of the company. Schibsted has a uniform risk
management process, referred to as Enterprise Risk Management
(ERM), which is driven centrally by Group Finance. Schibsted’s ERM
framework is based on ISO 31000 Risk Management: Principles and
Guidelines to ensure efficient risk management in the creation and
protection of stakeholders’ values. The Group Finance function
initiates and manages an ERM process on behalf of the CFO and
CEO, and also anchors the process and requirements with each
business area and significant unit management. The management
team of each business area, function and company is also
responsible for ensuring the following as part of the risk
management and internal control systems:
• achievement of financial and non-financial targets
• high-quality and safe products and services
• cost-effective operations
• reliable financial and management reporting
• compliance with legislation and regulations; and
• adherence to Schibsted’s values, Code of Conduct, governing
documents and policies.
Schibsted’s executive management reviews the overall risk
assessment of strategy, market, legal, compliance, and ethical
issues as well as operational and organizational risk assessments.
The annual risk assessments are also reported to and reviewed by
the Audit Committee and the Board.
Financial reporting and internal control
Overall responsibility for efficient, effective and compliant
financial reporting (FR), accounting, FR risks and controls lies with
the Group CFO. The governance and operations of these key
processes are managed by the Group Financial Reporting (GFR)
function with dedicated teams.
GFR plays a pivotal role in the preparation and presentation of
Schibsted’s consolidated financial statements in accordance with
International Financial Reporting Standards (IFRS). Group Internal
Control over Financial Reporting (ICFR), a separate unit of the GFR,
focuses on designing and maintaining a sound ICFR process and
system based on the principles set out in the COSO Internal Control
Framework. This forms the basis for providing reasonable
assurance of the reliability of the consolidated financial statements
and the underlying financial reporting process to Schibsted’s
stakeholders.
Group-level financial reporting and ICFR frameworks, policies, and
procedures have been established, including an IFRS-based group
accounting manual, and are made available to all subsidiaries.
These governing documents describe roles and responsibilities,
requirements and reporting deadlines. The Group ICFR framework
is structured in accordance with the five foundational components
of the COSO principles, including FR risk assessment, and
associated control activities. Schibsted practices a top-down risk-
based approach to the ICFR system, and accordingly has defined
the Group Financial Reporting materiality guidelines and levels.
Management submits and presents quarterly and annual financial
statements and reports to the Audit Committee and the Board after
holding quarterly financial review meetings with each operating
segment in the Group. The Audit Committee performs the
qualitative review of these reports before final review and approval
by the Board. In addition, the Board receives periodic management
reports as part of its work on monitoring and controlling the
Group’s operations. The management reports cover financial
reporting of the Group’s key figures, the status of business-related
matters, financial market information, non-financial indicators,
and a status report on each operating segment.
The Annual General Meeting determines the remuneration of the
board members. The remuneration reflects the Board’s
responsibilities, expertise and time commitment and the
complexity of the Group’s activities. The directors’ fees are
determined one year in advance, are fixed amounts, and are not
related to performance or incentive schemes. The Board has
established rules of procedure to ensure that any material
assignments for the company, including remuneration for any such
assignments, be approved by the Board. Any payments made to
board members beyond normal directors’ fees are disclosed in
Note 31 Transactions with related parties to the consolidated
financial statements. In 2021 no such fees were paid. See the
Nomination Committee’s Report and Note 31 Transactions with
related parties in the consolidated financial statements for further
details on remuneration of the Group board members.
The Compensation Committee prepares matters relating to the
remuneration of the Group CEO. The committee also assists the
Board in dealing with issues of principle, guidelines, and strategies
for the remuneration of other members of Schibsted’s executive
management and of senior managers in key subsidiaries.
Pursuant to the Public Companies Act, section 6-16a, the Annual
General Meeting in 2021 approved a remuneration policy setting
out guidelines for executive compensation. The remuneration
policy is available at schibsted.com. The remuneration policy sets
out principles of the Group's executive remuneration, including the
scope and organization of the Group's short and long-term
incentive programs. The implementation of the guidelines for
executive compensation adopted by the Annual General Meeting in
2021 is described in a separate remuneration report which is
prepared in accordance with the Public Companies Act, section
6-16b.
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
56
Dialog with shareholders and the financial markets
Schibsted has established a shareholder policy and an investor
relations policy that guide Schibsted’s contact with participants in
the financial markets. These are available on the Investor Relations
page on our website at schibsted.com. In accordance with the
shareholder policy, Schibsted as a listed company shall give
competitive returns based on a sound financial position.
Schibsted’s Board considers it essential that the Schibsted share
be perceived as an attractive investment option. One of the
objectives of Schibsted's Board is to promote shareholder returns
by means of long-term growth in share prices and dividends. The
Board will work to ensure that the company’s shares achieve a
price that best reflects the long-term earning capacity of the
company.
In accordance with our investor relations policy, communication
with the Norwegian and international stock markets has high
priority for Schibsted. Members of Schibsted’s Executive
Management Team and our Investor Relations department
maintain regular contact with the financial markets to ensure that
relevant and sufficient information reaches the market in a timely
manner. The objectives are to increase awareness about and
create confidence in Schibsted in the financial markets, achieve
improved liquidity for our shares, and provide a basis for correct
pricing of our shares. Openness, accessibility, transparency and
equal treatment of all market participants are fundamental to
good relationships with investors, analysts and other players in the
financial markets. All information distributed to our shareholders
is published on our website at the same time as it is sent to the
shareholders. Our contact with shareholders complies with all
material aspects of the Oslo Børs Code of Practice for Investor
Relations. The Group CFO and Head of Investor Relations regularly
update the Board on Investor Relations activities.
Reporting of financial information
It is important for Schibsted that participants in the financial
markets have confidence in the integrity of our financial reporting.
In accordance with its mandate, the Board’s Audit Committee
monitors the work on preparing Schibsted’s financial reports.
Schibsted publishes its financial figures quarterly. Open
presentations to investors are held in connection with the Group’s
quarterly reports, at which the CEO and CFO present the results
and comment on the market and outlook. Members of Schibsted’s
Executive Management Team attend the presentations as
required.
The presentations in connection with the quarterly results are
published on our website. Full versions of the annual report and
the Board of Directors' report are published on our website at least
21 days before the Annual General Meeting. Schibsted’s financial
calendar is announced one year at a time and published on our
website.
Other market information
In accordance with the market abuse regulation (MAR), the
Norwegian Securities Trading Act and the Stock Exchange Act,
notifications are distributed to Oslo Børs and national and
international news agencies, and are published on our website.
Schibsted regularly arranges Capital Markets Days and Investor
Days in order to present its strategy and other key development
trends. The most recent Capital Markets Day event was held
virtually on 11 March 2021. A video webcast of the event and the
presentation material are available on our website.
As stated in section 4 above, Schibsted’s Articles of Association
state that:
“No shareholder may own more than 30 percent of the shares or vote
for more than 30 percent of the total number of votes which may be
cast under the company's Articles of Association.”
The purpose of these restrictions is to safeguard Schibsted’s
independence and integrity in order to ensure that the company
has full editorial freedom, allowing the company to fulfill its
journalistic responsibilities and role in society as a media
company. The acceptance of a takeover bid for the company
would, as a consequence of the voting restrictions set out above,
require a change to the Articles of Association.
The Board has prepared principles and guidelines for handling any
takeover bids. In the event of a takeover bid the Board will, within
the limitations set out in the Articles of Association, seek to comply
with the recommendations in the Code.
Appointment of auditor
The external auditor is elected by the Annual General Meeting. The
Audit Committee presents a recommendation for the appointment
of an external auditor to the Board. The Board’s recommendation
is then presented to the Annual General Meeting, which makes the
final decision. As a general rule, all subsidiaries must use the same
audit firm. On 6 May 2021, the Annual General Meeting elected PwC
as Schibsted ASA’s new auditor from the fiscal year starting on
1 January 2022.
The Board’s relationship with the external auditor
According to its mandate, the Audit Committee is responsible for
ensuring that Schibsted be subject to an independent and effective
external audit. The Audit Committee has an expanded role in
monitoring and evaluating the external auditors since the passage
of the new Norwegian Auditors Act in 2021. As a result, the Audit
Committee evaluates the following factors relating to the external
auditor each year:
• Independence of its external auditors
• Nature and scope of non-audit service
• Audit and non-audit services fee
• The quality of the auditing service
SCHIBSTED ANNUAL REPORT 2021
CORPORATE GOVERNANCE
57
The Audit Committee evaluates the external auditor’s fee and
makes a recommendation to the Board. The Board submits a
proposal to the Annual General Meeting regarding the approval of
the external auditor’s fee. See Note 32 Auditors' remuneration in
the consolidated financial statements for information on
remuneration of the external auditor for the financial year 2021.
The external auditor presents an annual audit plan to the Audit
Committee. The company’s external auditor is present when the
management presents the preliminary consolidated financial
statements to the Board and when the final results are presented,
if deemed necessary. The external auditor also reviews internal
controls as part of the annual audit procedures, and reports any
identified weaknesses and proposed improvements to the Audit
Committee. The external auditor regularly attends Audit
Committee meetings and holds meetings with the Board without
the management being present.
The external auditor attends the company’s Annual General
Meeting and comments on the Auditor's Report.
Independence of the external auditor
The external auditor must under no circumstances perform
advisory services or other services which could potentially affect or
raise doubts about the auditor’s independence. The Group has
prepared guidelines on the relationship with the external auditor.
A written confirmation of independence is also submitted by the
external auditor to the audit committee.
The amount of non-audit services provided by the external auditor
in 2021 is compliant with the requirements in the Auditing and
Auditors Act and guidelines from Finanstilsynet (Financial
Supervisory Authority of Norway). The Board finds the advisory
services provided by the external auditor in 2021 not to influence
the auditor’s independence but acknowledges the potential issues
this entails. The Audit Committee is responsible for ensuring that
the auditor does not provide any prohibited non-audit services for
the Group. See Note 32 Auditors' remuneration in the consolidated
financial statements for information on fees relating to auditing
and consultancy services.
According to the Group’s own evaluation, the company is in
compliance except for four of the recommendations of the
Norwegian Code of Practice for Corporate Governance as outlined
below:
Section 3: Equity and dividends
The Code states that “mandates granted to the Board of Directors to
increase the company’s share capital should be restricted by defined
purposes”. The authorization to increase the share capital granted
by the 2021 Annual General Meeting is not restricted to defined
purposes as recommended by the Code. The Board elected not to
impose such restrictions in order to give the Board of Directors the
flexibility to raise capital as deemed appropriate.
Section 5: Shares and negotiability
Schibsted has two share classes with different voting rights. Each
A-share gives the right to 10 votes at the Annual General Meeting,
and each B-share gives the right to one vote at the Annual General
Meeting. Otherwise, the A-shares and B-shares carry equal rights.
Amendments to Schibsted's Articles of Association, as well as
certain important decisions relating to other companies in the
Schibsted group, require the approval of 3/4 of the A-shares
represented at the Annual General Meeting in addition to 3/4 of the
share capital represented at the Annual General Meeting.
The Articles of Association further prohits shareholders from
owning more than 30 percent of the shares or voting for more than
30 percent of the votes
The restrictions set out above do not comply with the
recommendations set out in Section 5 of the Code. The restrictions
were implemented in order to safeguard Schibsted’s position as an
independent media group characterized by free, independent
editorial staff, credibility and quality, and with long-term, healthy
financial development.
Section 6: Annual General Meeting
Schibsted does not systematically make arrangements to ensure
that an independent person chairs the Annual General Meeting.
This is assessed on a year-by-year basis considering the complexity
of the proposed agenda. Traditionally, the Board Chair chairs the
Annual General Meeting when the agenda does not require an
independent person. The rationale for this is that available voting
technology has resulted in lower physical attendance of the Annual
General Meeting, and thus has decreased the need for an
independent chair.
Section 14: Takeovers
According to Article 6 of the Articles of Association, shareholders
may not own or vote for more than 30 percent of the shares in the
company. The purpose of these restrictions is to safeguard
Schibsted’s independence and integrity in order to ensure that the
company has full editorial freedom, allowing the company to fulfill
its publishing responsibilities and role in society as a media
company.
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / GROUP
58
(NOK million)
Note
2021
2020
Operating revenues
6, 7
Raw materials and finished goods
(531 )
(454 )
Personnel expenses
9
(5,486 )
(4,905 )
Other operating expenses
8
(5,865 )
(5,422 )
Gross operating profit (loss)
6
Depreciation and amortisation
17, 18, 19
(984 )
(829 )
Share of profit (loss) of joint ventures and associates
5
(193 )
(44 )
Impairment loss
5, 16, 17, 18
(20,119 )
(61 )
Other income
12
Other expenses
12
(171 )
(237 )
Operating profit (loss)
6
(18,398 )
Financial income
13
Financial expenses
13
(248 )
(197 )
Profit (loss) before taxes
(18,618 )
Taxes
14
(280 )
Profit (loss) from continuing operations
(18,898 )
Profit (loss) from discontinued operations
33
(233 )
Profit (loss)
Profit (loss) attributable to:
Non-controlling interests
29
(274 )
(22 )
Owners of the parent
Earnings per share in NOK:
Basic
15
Diluted
15
Earnings per share from continuing operations in NOK:
Basic
15
(81.15 )
Diluted
15
(81.01 )
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / GROUP
59
(NOK million)
Note
2021
2020
Profit (loss)
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension liabilities
11
(31 )
(148 )
Cash flow hedges
(1,626 )
Change in fair value of equity instruments
(18 )
Share of other comprehensive income of joint ventures and associates
5
(1 )
Income tax related to items that will not be reclassified
14
(14 )
Items that may be reclassified to profit or loss:
Foreign exchange differences
(1,703 )
Accumulated exchange differences reclassified to profit or loss on disposal of foreign
operation
Cash flow hedges and hedges of net investments in foreign operations
(223 )
Share of other comprehensive income of joint ventures and associates
(43 )
(2 )
Income tax relating to items that may be reclassified
14
(40 )
Other comprehensive income
(403 )
(1,745 )
Total comprehensive income
(909 )
Total comprehensive income attributable to:
Non-controlling interests
(53 )
(661 )
Owners of the parent
(249 )
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / GROUP
60
(NOK million)
Note
2021
2020
ASSETS
Intangible assets
16, 17
Property, plant and equipment
18
Right-of-use assets
19
Investments in joint ventures and associates
5
Deferred tax assets
14
Other non-current assets
20
Non-current assets
Contract assets
7
Trade receivables and other current assets
20, 27
Cash and cash equivalents
27
Assets held for sale
33
Current assets
Total assets
EQUITY AND LIABILITIES
Paid-in equity
Other equity
Equity attributable to owners of the parent
28
Non-controlling interests
29
Equity
Deferred tax liabilities
14
Pension liabilities
11
Non-current interest-bearing loans and borrowings
26, 27
Non-current lease liabilities
19
Other non-current liabilities
24
Non-current liabilities
Current interest-bearing loans and borrowings
26, 27
Income tax payable
Current lease liabilities
19
Contract liabilities
7
Other current liabilities
24
Liabilities held for sale
33
Current liabilities
Total equity and liabilities
Oslo, 24 March 2022
Schibsted ASA’s Board of Directors
...........................................
Ole Jacob Sunde
Board Chair
...........................................
Karl-Christian Agerup
Board member
...........................................
Rune Bjerke
Board member
...........................................
Torbjörn Ek
Board member
...........................................
Satu Huber
Board member
...........................................
Hugo Maurstad
Board member
...........................................
Hans Kristian Mjelva
Board member
...........................................
Anna Mossberg
Board member
...........................................
Ingunn Saltbones
Board member
...........................................
Philippe Vimard
Board member
...........................................
Eugénie van Wiechen
Board member
...........................................
Kristin Skogen Lund
CEO
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / GROUP
61
The statement of cash flows is prepared in accordance with applicable accounting standards and includes cash flows from discontinued operations. For
detailed information on cash flows from continuing operations, see note 30 Supplemental information to the consolidated statement of cash flows.
(NOK million)
Note
2021
2020
CASH FLOW FROM OPERATING ACTIVITIES
Profit (loss) before taxes from continuing operations
(18,618 )
Profit (loss) before taxes from discontinued operations
(134 )
Depreciation, amortisation and impairment losses
5, 17, 18, 19
Net interest expense
Net effect pension liabilities
(85 )
(7 )
Share of loss (profit) of joint ventures and associates
5
Dividends received from joint ventures and associates
Interest received
Interest paid
(414 )
(212 )
Taxes paid
(424 )
(819 )
Sales losses (gains) on non-current assets and other non-cash losses (gains)
(189 )
Non-cash items and change in working capital and provisions *
Net cash flow from operating activities
- of which from continuing operations
- of which from discontinued operations
CASH FLOW FROM INVESTING ACTIVITIES
Development and purchase of intangible assets, and property, plant
and equipment
17, 18
(951 )
(1,069 )
Acquisition of subsidiaries, net of cash acquired
30
(3,048 )
(2,025 )
Proceeds from sale of intangible assets, investment property and property, plant and
equipment
Proceeds from sale of subsidiaries, net of cash sold
30
(1,244 )
Net sale of (investment in) other shares
(525 )
(254 )
Net change in other investments
(170 )
(3,302 )
Net cash flow from investing activities
(5,923 )
(6,109 )
- of which from continuing operations
(4,425 )
(2,654 )
- of which from discontinued operations
(1,499 )
(3,455 )
CASH FLOW FROM FINANCING ACTIVITIES
New interest-bearing loans and borrowings
Repayment of interest-bearing loans and borrowings
(1,179 )
(3,187 )
Payment of principal portion of lease liabilities
30
(419 )
(419 )
Change in ownership interests in subsidiaries
30
(228 )
(91 )
Capital increase
Net sale (purchase) of treasury shares
(90 )
Dividends paid to owners of the parent
(468 )
Dividends paid to non-controlling interests
29
(131 )
(61 )
Net cash flow from financing activities
- of which from continuing operations
(498 )
- of which from discontinued operations
(392 )
Effects of exchange rate changes on cash and cash equivalents
(54 )
(105 )
Net increase (decrease) in cash and cash equivalents
(1,570 )
(1,188 )
Cash and cash equivalents as at 1 January
Cash and cash equivalents as at 31 December
- of which cash and cash equivalents in assets held for sale
- of which cash and cash equivalents excluding assets held for sale
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / GROUP
62
* Non-cash items and changes in working capital and provisions consist of changes in trade receivables, other current receivables and liabilities, other
accruals and non-cash items. In 2020, non-cash items and change in working capital and provisions include NOK 873 million of foreign exchange losses
related to cash flow hedges in Adevinta primarily related to the Grupo Zap acquisition. Related cash outflows are reported in net cash flow from investing
activities.
Attributable to owners of the parent
(NOK million)
Note
Share
capital
Other
paid-in
equity
Retained
earnings
Foreign
currency
transl.
reserve
Hedging
reserves
(Note 28)
Share-
holders'
equity
Non-
controlling
interests
Total
As at 31 December 2019
(186 )
Profit (loss) for the period
(22 )
Other comprehensive income
(133 )
(1,147 )
(1,107 )
(638 )
(1,745 )
Total comprehensive income
(1,147 )
(249 )
(661 )
(909 )
Capital increase
Share-based payment
Dividends paid to non-controlling
interests
(61 )
(46 )
Change in treasury shares
28
(90 )
(90 )
(90 )
Acquisition of assets not constituting a
business
4
Loss of control of subsidiaries
4
(2 )
(2 )
Changes in ownership of subsidiaries that
do not result in a loss of control
4
(41 )
(41 )
(25 )
(67 )
Initial recognition and change in fair
value of non-controlling interests’ put
options
23
(3 )
(3 )
Share of transactions with the owners of
joint ventures and associates
(14 )
(14 )
(14 )
Total transactions with the owners
(133 )
(72 )
(48 )
(119 )
As at 31 December 2020
(1,333 )
Profit (loss) for the period
(274 )
Other comprehensive income
(47 )
(1,910 )
(625 )
(403 )
Total comprehensive income
(1,910 )
(53 )
Share-based payment
(8 )
Dividends paid to owners of the parent
(468 )
(468 )
(468 )
Dividends paid to non-controlling
interests
(140 )
(124 )
Change in treasury shares
28
Business combinations
4
Loss of control of subsidiaries
4
(5,249 )
(5,249 )
Changes in ownership of subsidiaries that
do not result in a loss of control
4
(89 )
(89 )
(88 )
(176 )
Initial recognition and change in fair
value of non-controlling interests’ put
options
23
(49 )
(49 )
(4 )
(53 )
Share of transactions with the owners of
joint ventures and associates
(60 )
(60 )
(60 )
Total transactions with the owners
(595 )
(562 )
(5,421 )
(5,983 )
As at 31 December 2021
(1,393 )
Share capital reflects shares outstanding. See Note 28 Equity for shares issued and treasury shares.
SCHIBSTED ANNUAL REPORT 2021
NOTES
63
Note 1 - General information
Note 2 - Basis for preparing the financial statements
Note 3 - Significant accounting judgements and major sources of estimation uncertainty
Note 4 - Changes in the composition of the Group
Note 5 - Investments in joint ventures and associates
Note 6 - Operating segments
Note 7 - Revenue recognition
Note 8 - Other operating expenses
Note 9 - Personnel expenses and remuneration
Note 10 - Share-based payment
Note 11 - Pension plans
Note 12 - Other income and expenses
Note 13 - Financial items
Note 14 - Income taxes
Note 15 - Earnings per share
Note 16 - Impairment assessments
Note 17 - Intangible assets
Note 18 - Property, plant and equipment
Note 19 - Leases
Note 20 - Trade receivables and other non-current and current assets
Note 21 - Trade receivables and contract assets
Note 22 - Equity instruments
Note 23 - Financial liabilities related to business combinations and increases in ownership interests
Note 24 - Other non-current and current liabilities
Note 25 - Financial risk management
Note 26 - Interest-bearing loans and borrowings
Note 27 - Financial instruments by category
Note 28 - Equity
Note 29 - Non-controlling interests
Note 30 - Supplemental information to the consolidated statement of cash flows
Note 31 - Transactions with related parties
Note 32 - Auditors' remuneration
Note 33 - Assets held for sale and discontinued operations
Note 34 - COVID-19
Note 35 - Events after the balance sheet date
SCHIBSTED ANNUAL REPORT 2021
NOTES
64
General
Schibsted ASA is a public limited liability company and its offices are
located at Akersgata 55, Oslo in Norway . The A-shares and B-shares of
Schibsted ASA are listed on the Oslo Børs. Schibsted is an international
segments are described in segment information in Note 6 Operating
segments. Following the completion of Adevinta's acquisition of eBay
Classifieds Group on 25 June 2021, Schibsted lost control over Adevinta and
ceased to consolidate Adevinta with effect from closing of the acquisition.
The retained ownership interest in Adevinta will be accounted for as an
associate and share of profit (loss) of Adevinta will be reported with one
quarter lag commencing Q4 2021. See Note 4 Changes in the composition
of the Group and Note 33 Assets held for sale and discontinued operations
for further details. The comparative figures in the income statement and
related note disclosures have been re-presented, reflecting Adevinta as
discontinued for the period until loss of control. Historical figures for the
statement of financial position and the cash flow statement have not been
re-presented. The consolidated financial statements including notes for
Schibsted ASA for the year 2021 were approved by the Board of Directors on
24 March 2022 and will be proposed to the General Meeting on 3 May 2022.
Compliance with IFRS
The consolidated financial statements have been prepared and presented
in accordance with International Financial Reporting Standards (IFRS), as
adopted by the EU. The measurement and recognition of the items in the
financial statements have been carried out in accordance with applicable
IFRS standards.
New and amended standards adopted by the Group
The Group applied for the first-time certain standards and amendments,
which are effective for annual periods beginning on or after 1 January 2021.
These are:
• Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9,
IAS 39, IFRS 7, IFRS 4 and IFRS 16
• Covid 19-Related Rent Concessions beyond 30 June 2021: Amendments
to IFRS 16
The amendments listed above did not have any impact on the amounts
recognised in the current period or prior periods and are not expected to
significantly affect the future periods. The Group has not early adopted any
other standard, interpretation or amendment that has been issued but is
not yet effective, and do not expect material impact on the Group upon
adoption except for effects on note disclosures following the amendments
to IAS 1.
Primary financial statements
The consolidated financial statements have been prepared based on a
historical cost basis with the exception for certain financial assets and
liabilities, including derivatives, measured at fair value. Non-financial
assets that no longer justify their value are written down to the recoverable
amount, which is the higher of value in use and fair value less selling costs.
An asset or liability is classified as current when it is part of a normal
operating cycle, when it is held primarily for trading purposes, when it falls
due within 12 months after the end of the reporting period or when it is cash
or cash equivalents. Other items are non-current. A dividend does not
become a liability until it has been formally approved by the General
Meeting. Assets and directly associated liabilities held for sale are
presented separately within current items in the statement of financial
position and are valued at the lower of their former carrying amount or fair
value minus sales costs. Discontinued operations are presented separately
in the income statement.
All amounts are in NOK million unless otherwise stated. Tables may not
summarise due to roundings.
The accounting principles applied, and significant estimation uncertainties
are disclosed in relevant notes to the consolidated financial statements.
The statement of cash flows is prepared under the indirect method. Cash
and cash equivalents consist of bank deposits and other monetary
instruments with a maturity of three months or less.
Consolidation principles
The consolidated financial statements include the parent Schibsted ASA
and all subsidiaries, presented as a single economic entity. All the entities
have applied consistent principles and all intercompany transactions and
balances have been eliminated.
Subsidiaries are all entities controlled, directly or indirectly, by Schibsted
ASA. The Group controls an entity when it is exposed to, or has rights to,
variable returns from the involvement with the entity and has the ability to
affect those returns through power over the entity. Power over an entity
exists when the Group has existing rights that give the current ability to
direct the activities that significantly affect the entity's returns.
Generally, there is a presumption that a majority of voting rights result in
control. The Group considers all relevant facts and circumstances in
assessing whether control exists, including contractual arrangements and
potential voting rights to the extent that those are substantive.
Subsidiaries are included in the consolidated financial statements from the
date Schibsted ASA effectively obtains control of the subsidiary (acquisition
date) and until the date Schibsted ASA ceases to control the subsidiary.
Non-controlling interests is the equity in a subsidiary not attributable,
directly or indirectly, to the parent Schibsted ASA. Non-controlling interests
are presented in the consolidated balance sheet within equity, separately
from the equity of the owners of the parent. Profit (loss) and comprehensive
income attributable to non-controlling interests are disclosed as
allocations for the period of profit (loss) and comprehensive income
attributable to non-controlling interests and owners of the parent,
respectively.
Foreign currency translation
Items included in the financial statements of each of the Group’s entities
are measured using the currency of the primary economic environment in
which the entity operates (‘the functional currency’). The statutory
company accounts of Schibsted ASA and the consolidated financial
statements for the Group are presented in Norwegian kroner (NOK).
Schibsted ASA has NOK as functional currency.
Foreign currency transactions are translated into the entity's functional
currency on initial recognition by using the spot exchange rate at the date
of the transaction. At the balance sheet date, assets and liabilities are
translated from foreign currency to the entity’s functional currency by:
• translating monetary items using the exchange rate at the balance sheet
date
• translating non-monetary items that are measured in terms of historical
cost in a foreign currency using the exchange rate at the transaction
date
• translating non-monetary items that are measured at fair value in a
foreign currency using the exchange rate at the date when the fair value
was determined
SCHIBSTED ANNUAL REPORT 2021
NOTES
65
Exchange differences arising on the settlement of, or on translating
monetary items not designated as hedging instruments, are recognised in
profit or loss in the period in which they arise. When a gain or loss on a non-
monetary item is recognised in other comprehensive income, any exchange
component of that gain or loss is also recognised in other comprehensive
income. When a gain or loss on a non-monetary item is recognised in profit
or loss, any exchange component of that gain or loss is also recognised in
profit or loss.
Upon incorporation of a foreign operation into the consolidated financial
statements by consolidation or the equity method, the results and financial
position is translated from the functional currency of the foreign operation
into NOK (the presentation currency) by using the step-by-step method of
consolidation. Assets and liabilities are translated at the closing rate at the
balance sheet date and income and expenses are translated monthly at the
average exchange rates for the month and accumulated. Resulting
exchange differences are recognised in other comprehensive income until
the disposal of the foreign operation.
Exchange rates are quoted from the Norwegian state bank (norges-
bank.no).
Goodwill and fair value adjustments to the carrying amounts of assets and
liabilities arising on the acquisition of a foreign operation, is treated as
assets and liabilities of that foreign operation. They are therefore expressed
in the functional currency of the foreign operation and translated at the
closing rate at the balance sheet date.
Presentation of discontinued operations and assets held for sale
Discontinued operations are presented separately in the income statement
and assets and liabilities held for sale are presented separately in
statement of financial position, see Note 33 Assets held for sale
and discontinued operations. Previous periods are re-presented
for discontinued operations, but not for assets or liabilities held for sale.
Note disclosures reconciling movements from opening to closing carrying
amount of assets and liabilities include movements related to discontinued
operations and movements related to assets or liabilities held for sale while
being classified as such. Any reclassification of the closing carrying amount
of assets and liabilities being held for sale, in the year of initial classification
as held for sale, is presented as a separate movement (“Reclassified as held
for sale”). Any subsequent movements are presented with corresponding
amounts presented as disposal on loss of control.
Separate note disclosures relating to profit or loss
of discontinued operations and to assets and liabilities held for sale are
included in Note 33 Assets held for sale and discontinued operations.
The management has made use of estimates and assumptions in preparing
the consolidated financial statements. The most important areas where
estimates and judgements are having an impact are listed below. Detailed
information of these estimates and judgements are disclosed in the
relevant notes.
Significant estimates and judgements:
• Recognition of contracted listing fees and premium products according
to normal pattern of views (Note 7)
• Calculation of present value of defined benefit pension obligations
(Note 11)
• Recognition of deferred tax asset for carried forward tax losses (Note 14)
• Calculation of value in use in testing for impairment (Note 16)
• Capitalisation of development costs (Note 17)
• Determination of lease term and estimating the incremental borrowing
rate (Note 19)
• Fair value of contingent consideration and liabilities related to non-
controlling interests' put options (Note 23)
• Provisions and contingent liabilities (Note 24)
• Assets and liabilities measured at fair value (Note 27)
Principle
Business combinations
The acquisition method is used to account for all business combinations
where Schibsted ASA or a subsidiary is the acquirer, i.e. the entity that
obtains control over another entity or business. When a subsidiary or
business is acquired, a purchase price allocation is carried out.
Identifiable assets acquired and liabilities, including contingent
liabilities assumed, are measured at fair value at the acquisition date.
Any non-controlling interest in the acquiree is measured either at fair
value or at the proportionate share of the acquiree's identifiable net
assets. The residual value in the acquisition is goodwill. Acquisition-
related costs are expensed as incurred.
Contingent consideration relating to a business combination is
recognised as part of the consideration transferred in exchange for the
acquiree. Subsequent changes in the fair value of such contingent
consideration deemed to be a liability is recognised in profit or loss.
In business combination achieved in stages, the previously held equity
interest is remeasured to fair value at the acquisition date. Any gains or
losses arising from such remeasurement are recognised in profit or loss.
Changes in ownership interests in subsidiaries that do not result in
a loss of control
Transactions with non-controlling interests are recognised in equity.
The carrying amount of non-controlling interests is adjusted to reflect
the change in their relative share in the subsidiary. Any difference
between the amount by which the non-controlling interests is adjusted
and the fair value of the consideration paid or received is recognised
directly in equity and attributed to the owners of the parent.
Contingent consideration as part of the consideration paid to non-
controlling interests is classified as a financial liability with subsequent
changes in fair value recognised in profit or loss.
Loss of control
When control of a subsidiary is lost, the assets and liabilities of the
subsidiary and the carrying amount of any non-controlling interests are
derecognised. Any consideration received and any investment retained
in the former subsidiary is recognised at their fair values. The difference
between amounts recognised and derecognised is recognised as gain or
loss in profit or loss. Amounts recognised in other comprehensive
income related to the subsidiary are reclassified to profit or loss or
transferred to equity similarly as if the parent had disposed of the assets
and liabilities directly. Amounts reclassified to profit or loss (including
accumulated translation differences) are included in gain or loss on loss
of control of subsidiary in profit or loss.
Loss of control of Adevinta
In July 2020, Schibsted announced that its subsidiary Adevinta ASA had
signed an agreement to acquire 100 percent of eBay Classified Group being
the global classifieds operations of eBay Inc (eBay). The transaction was
SCHIBSTED ANNUAL REPORT 2021
NOTES
66
completed on 25 June 2021. Under the terms of the agreement, eBay
received a consideration of USD 2.5 billion in cash and approximately
540 million shares in Adevinta representing an ownership interest of
44.1 percent of the capital and 33.3 percent of the votes.
The share issue of Adevinta ASA diluted the ownership interest of Schibsted
in Adevinta to 33.1 percent of the capital and 39.5 percent of the votes,
thereby resulting in Schibsted losing control of Adevinta. The accounting
gain recognised in relation to loss of control amounts to NOK 60 billion,
included in Profit (loss) from discontinued operations. The gain primarily
reflects the difference between the fair value of the retained interest in
Adevinta being recognised and the carrying amounts of Adevinta as a
subsidiary being derecognised. Further, the net gain reflects
reclassification of accumulated translation differences and transaction
cost. The loss of control affects consolidated cash flows negatively by the
cash of Adevinta being disposed of. The gain is included in the line item
Profit (loss) after taxes from discontinued operations. See Note 33 Assets
held for sale and discontinued operations.
Following loss of control at the end of June 2021, Schibsted accounts for its
retained interest in Adevinta as an associate applying the equity method of
accounting. Under the equity method, share of profit (loss) recognised will
reflect Schibsted’s share of profit (loss) as reported by Adevinta with
appropriate adjustments for depreciation and amortisation of non-current
assets based on their fair values when equity accounting commenced.
As Adevinta issues its interim reports later than Schibsted, share of profit
(loss) will be reported with a one quarter lag. Schibsted’s share of
Adevinta’s loss in the second half of 2021 therefore only includes the third
quarter results of Adevinta.
The retained interest in Adevinta was remeasured at its fair value of
NOK 69 billion when control was lost. See also Note 5 Investments in joint
ventures and associates.
Business combinations
During 2021, Schibsted (continuing operations) invested NOK 3,029 million
million related to business combinations, whereof NOK 2,843 million is
related to the acquisition of eBay Classifieds Scandinavia ApS (now known
as Schibsted Denmark ApS). The amount comprises cash consideration
transferred reduced by cash and cash equivalents of the acquiree.
As part of Adevinta's acquisition of eBay Classified Group, Schibsted
acquired the Danish operations of eBay Classified Group (DBA.dk and
bilbasen.dk) from Adevinta through the acquisition of 100 percent of the
shares of eBay Classifieds Scandinavia ApS. With the completion of the
acquisition, Schibsted added a strong online classifieds business with solid
margins to its portfolio and obtained access to a digitally advanced and
attractive market for online classifieds. The transaction was completed on
25 June 2021 with consolidation for practical reasons commencing at 30
June 2021.
In June 2021, Schibsted obtained control over the Swedish premium
podcast company PodMe AB through increasing its ownership interest from
48 percent to 91 percent through acquisition of shares. The brand will be
central in Schibsted’s strategy for subscription-based podcasts. The
previously held ownership interest was accounted for as an associate and
was remeasured at fair value at the acquisition date resulting in a gain of
NOK 50 million recognised in the line item Other income.
In December 2021, Schibsted acquired 51 percent of Plick AB, a Swedish
marketplace for preloved fashion. It is a social and inspiring marketplace
that already has strong traction among the youngest users in Sweden.
Second-hand fashion as a category is expected to grow rapidly over the
years to come.
Schibsted has also been involved in other minor business combinations.
Acquisition-related costs of NOK 7 million (NOK 70 million in 2020) related
to business combinations closed are recognised in profit or loss in the line
item Other expenses.
The table below summarizes the consideration transferred and the
preliminary amounts recognised for assets acquired and liabilities assumed
in the business combinations. The amounts in 2020 are related to the
acquistion of Oikotie.
Schibsted
Denmark ApS
Other
Total 2021
Total 2020
Consideration:
Cash
2,938
341
3,279
2,037
Fair value of previously held equity interest
-
123
123
-
Cash flow hedge included in initial cost
179
-
179
-
Replacement awards share-based payment
20
-
20
-
Total
3,137
464
3,601
2,037
Amounts for assets and liabilities recognised:
Intangible assets
1,187
79
1,266
993
Other non-current assets
11
11
22
2
Trade receivables and other current assets
56
24
80
15
Cash and cash equivalents
95
154
250
86
Deferred tax liabilities
(258)
(12)
(270)
(195)
Other non-current liabilities
(6)
(5)
(12)
(3)
Current liabilities
(64)
(39)
(103)
(50)
Total identifiable net assets
1,020
214
1,234
847
Non-controlling interests
-
(67)
(67)
-
Goodwill
2,116
317
2,433
1,189
Total
3,137
464
3,601
2,037
There are no significant effects from finalising preliminary purchase price
allocations from previous year.
The intangible assets of NOK 1,266 million consist mainly of brands,
customer relations and technology. Approximately 75 percent of the assets
have indefinite lives while the remaining approximately 25 percent is
amortised over a period from 5 -10 years. The goodwill recognised is
attributable to inseparable non-contractual customer relationships, the
assembled workforce of the companies and synergies. NOK 3 million of the
SCHIBSTED ANNUAL REPORT 2021
NOTES
67
goodwill recognised is expected to be deductible for income tax purposes.
The business combinations are carried out as part of the Group's growth
strategy, and the businesses acquired are good strategic fits with existing
operations within the Schibsted Group.
The fair value of acquired receivables is NOK 81 million in 2021
(NOK 15 million in 2020), of which NOK 19 million (NOK 13 million in 2020)
are trade receivables. There is no material difference between the gross
contractual amounts receivable and the fair value of the receivables.
Any non-controlling interests are measured at the proportionate share of
the acquiree's identifiable net assets.
The companies acquired in business combinations have since the
acquisition dates contributed NOK 287 million to operating revenues in
2021 (NOK 114 million in 2020) and contributed negatively to consolidated
profit (loss) by NOK 61 million in 2021 (negatively NOK 9 million in 2020). If
the acquisition date of all business combinations completed through
purchase of shares was as at 1 January, the operating revenues of the Group
would have increased by NOK 303 million in 2021 (NOK 139 million in 2020)
and profit (loss) would have decreased by NOK 63 million (increased
NOK 7 million in 2020).
Other changes in the composition of the Group
In November 2020, the Norwegian Competition Authority (NCA) resolved to
prohibit the business combination between Schibsted and Nettbil, which
was acquired in December 2019, and ordered Schibsted to sell its shares in
Nettbil. Schibsted first appealed the decision to the Norwegian
Competition Tribunal, and later to the Court of Appeal. See Note 35 Events
after the balance sheet date. The NCA’s decision did not have an impact on
the accounting of Schibsted’s investment in Nettbil in 2021.
The cash outflow from changes in ownership interests in subsidiaries of
NOK 228 million in 2021 mainly relate to Adevinta ASA having purchased its
own treasury shares.
In July the subsidiary Kundkraft was sold to the Norwegian digital power
company Tibber AS. Gain on the sale is recognised in the line item Other
income. The sale was settled with shares in Tibber AS giving an ownership
percentage of around 5 percent. In November, Schibsted increased its
ownership share further to around 15 percent. Tibber offers customers
renewable electricity at cost and tools to help reduce energy consumption.
In November and December, Mötesplatsen i Norden AB and Let's Deal AB
were sold to industry-specialized players. A loss on sale of in total
NOK 34 million is recognised in profit or loss in the line item Other expenses.
Changes in ownership interests in subsidiaries that do not result in a loss of
control are accounted for as equity transactions. The effect on the equity
attributable to owners of the parent is presented in the table below:
2021
2020
Net consideration received (paid)
(228)
(91)
Adjusted for amounts previously recognised as
financial liabilities related to non-controlling
interests' put options
-
38
Adjusted for amounts of treasury shares of
subsidiaries used in share-based payment
transactions
51
16
Contingent consideration recognised
-
(30)
Initial recognition of non-controlling interests'
put options
(52)
-
Adjustment to equity
(229)
(67)
-of which adjustment to non-controlling interests
(91)
(23)
-of which adjustment to equity attributable to
owners of the parent
(138)
(44)
Principle
A joint arrangement is an arrangement of which two or more parties
have joint control. Joint control is the contractually agreed sharing of
control of an arrangement and exists when decisions about the relevant
activities require the unanimous consent of the parties sharing control.
Investments in joint arrangements are classified as joint ventures if they
are structured through separate vehicles and the parties have rights to
the net assets of the arrangements.
An associate is an entity that Schibsted, directly or indirectly through
subsidiaries, has significant influence over. Significant influence is
normally presumed to exist when Schibsted controls 20 percent or more
of the voting power of the investee. Significant influence can also be
presumed to exist when Schibsted is entitled to a board member, even
at ownership interests lower than 20 percent.
Interests in joint ventures and associates are accounted for using the
equity method.
Equity method
Under the equity method of accounting, the investments are initially
recognised at cost and adjusted thereafter to recognise the Group’s
share of the post-acquisition profits or losses. The Group's share of the
investee's profit or loss is recognised in operating profit (loss) in the
income statement and the share of changes in other comprehensive
income is recognised in other comprehensive income with a
corresponding adjustment to the carrying amount of the investment.
Dividends received reduce the carrying amount of the investment.
When the Group’s share of losses equals or exceeds its interest in the
entity, including any other unsecured long-term receivables, the Group
does not recognise further losses, unless it has incurred obligations or
made payments on behalf of the other entity.
Gains or losses from upstream or downstream transactions between the
Group and a joint venture or an associate, including any sale or
contribution of subsidiaries to a joint venture or associate, are
recognised only to the extent of unrelated investors’ ownership interest
in the joint venture or associate.
An investment in an associate is impaired and an impairment loss is
incurred if there is objective evidence of impairment as a result of a loss
event having occurred. Further, in relation to share price development,
a decline in fair value will have to be significant or prolonged to provide
evidence of impairment. Schibsted assesses a decline in fair value of 20
percent to be significant and a decline lasting for 12 months to be
prolonged. Impairment losses are reversed to the extent that the
impairment loss decreases or no longer exists.
Impairment
An investment in a joint venture or an associate is impaired and an
impairment loss is incurred if there is objective evidence of impairment
as a result of a loss event having occurred. Further, in relation to share
price development, a decline in fair value will have to be significant or
prolonged to provide evidence of impairment. Schibsted assesses a
decline in fair value of 20 percent to be significant and a decline lasting
for 12 months to be prolonged. Impairment losses are reversed to the
extent that the impairment loss decreases or no longer exists.
SCHIBSTED ANNUAL REPORT 2021
NOTES
68
Changes in ownership
The use of the equity method is discontinued from the date an investment
ceases to be a joint venture or an associate. The difference between the
total of the fair value of any retained interest and any proceeds from
disposing of a part interest in a joint venture or an associate, and the
carrying amount of the investment, is recognised as gain or loss in profit
or loss.
If the Group's ownership interest in a joint venture or an associate is
reduced, but the equity method is still applied, a gain or loss from the
partial disposal is recognised in profit or loss. The retained interest is not
remeasured.
2021
2020
Development in net carrying amount
Joint
ventures
Associates
Total
Joint
ventures
Associates
Total
As at 1 January
62
860
922
3,688
831
4,519
Additions
34
249
283
844
201
1,045
Disposals
-
(100)
(100)
-
(24)
(24)
Disposals on sale of businesses
-
13
13
-
-
-
Transition from (to) subsidiaries
-
68,906
68,906
-
(20)
(20)
Transition from (to) equity instruments
-
(154)
(154)
-
12
12
Transition from (to) receivables
-
34
34
-
-
-
Share of profit (loss) from continuing operations
(19)
(174)
(193)
(12)
(32)
(44)
Share of profit (loss) from discontinued operations
-
-
-
43
(28)
15
Share of other comprehensive income
-
(39)
(39)
-
(3)
(3)
Increase from dividend received from subsidiary (reciprocal interests)
-
16
16
-
15
15
Retained gain
-
-
-
-
(26)
(26)
Gain
-
198
198
-
28
28
Impairment loss
-
(20,000)
(20,000)
-
(29)
(29)
Capital decrease and dividends received
-
(16)
(16)
(23)
(2)
(25)
Share of transactions with the owners of joint ventures and associates
-
(60)
(60)
-
(14)
(14)
Foreign exchange differences
(5)
(1,284)
(1,289)
(870)
51
(819)
Reclassified as held for sale
-
-
-
(3,609)
(100)
(3,709)
As at 31 December
73
48,447
48,520
62
860
922
In June, a share issue in Adevinta diluted the ownership interest of
Schibsted to 33.15 percent, thereby resulting in Schibsted losing control of
Adevinta. The retained interest as an associate was remeasured at its fair
value of NOK 69 billion when control was lost. As Adevinta issues its interim
reports later than Schibsted, share of profit (loss) will be reported with a
one quarter lag. Schibsted’s share of Adevinta’s loss in the second half of
2021 therefore only includes the third quarter results of Adevinta. The effect
of amortization of identified excess values on share of profit (loss) was
EUR 10 million. The decline in fair value of Adevinta during the second half
of 2021 is significant and an impairment loss of NOK 20 billion is recognised,
thereby reducing the carrying amount of the investment to its fair value at
the end of 2021 of NOK 48 billion.
In June, Schibsted obtained control over the Swedish premium podcast
company PodMe AB through increasing its ownership interest from
48 percent to 91 percent through acquisition of shares. The previously held
ownership interest was accounted for as an associate and was remeasured
at fair value at the acquisition date resulting in a gain of NOK 50 million. See
Note 4 Changes in the composition of the Group.
In October, eEducation Albert AB was listed on Nasdaq First North Growth
Market. Schibsted was diluted in the IPO and significant influence ceased
to exist. A gain of NOK 99 million was recognised related to remeasurement
of the retained interest as an equity instrument.
In December, Capcito Finance AB was divested resulting in a gain of
NOK 32 million.
SCHIBSTED ANNUAL REPORT 2021
NOTES
69
The carrying amount of investments in joint ventures and associates comprises the following investments:
2021
2020
Country of
incorporation
Interest
held
Joint
ventures
Associates
Interest
held
Joint
ventures
Associates
Our Interest Holding AB
Sweden
50.00%
66
-
50.00%
60
-
Adevinta ASA
Norway
33.15%
-
47,630
-
-
-
Polaris Media ASA
Norway
29.44%
-
235
28.97%
-
207
Rocker AB
Sweden
31.85%
-
108
32.00%
-
157
TT Nyhetsbyrån AB
Sweden
39.64%
-
107
39.64%
-
111
Insurello AB
Sweden
28.46%
-
69
20.30%
-
33
Norsk Telegrambyrå AS
Norway
29.47%
-
60
29.47%
-
53
Mindler AB
Sweden
12.79%
-
52
11.80%
-
35
Enviv AS
Norway
29.29%
-
38
-
-
-
SAVR AB
Sweden
4.46%
-
29
-
-
-
Hjemmelegene AS
Norway
28.71%
-
23
28.86%
-
26
Fixrate AS
Norway
13.02%
-
19
13.07%
-
20
Hygglo AB
Sweden
33.79%
-
15
33.79%
-
18
PodMe AB
Sweden
-
-
-
42.58%
-
51
eEducation Albert AB
Sweden
-
-
-
21.99%
-
38
AddHealth Media AB
Sweden
-
-
-
26.81%
-
36
Capcito Finance AB
Sweden
-
-
-
13.65%
-
26
Other
6
64
2
49
Carrying amount as at 31 December
73
48,447
62
860
If the company mentioned is the parent company of a group, the figures presented are for the consolidated group. Interest held refers to direct ownership, irrespective of non-
controlling interests of ownership company.
Based on quoted market prices, fair value of Adevinta ASA is NOK 47,630 million and Polaris Media ASA NOK 1,338 million.
Description of the business of the joint ventures and associates:
Our Interest Holding AB
A financial intermediation service for home loans
Adevinta ASA
A global classifieds specialist with online marketplaces in 15 countries
Polaris Media ASA
A Norwegian media group that operates local and regional media houses
Rocker AB
A tech company reshaping the retail banking industry
TT Nyhetsbyrån AB
A Swedish news agency
Insurello AB
Processes insurance claims for consumers focusing on automating accident insurance claims
Norsk Telegrambyrå AS
A Norwegian news agency
Mindler AB
Operates an online psychologist service
Enviv AS
Online bookstore to buy and sell books
SAVR AB
A digital distributor of mutual funds at reduced fees
Hjemmelegene AS
Operates a doctor home visit service
Fixrate AS
Marketplace helping companies achieve the best conditions for their bank deposits
Hygglo AB
Marketplace for rentals between persons
PodMe AB
Operates a podcast service
eEducation Albert AB
Operates an application that educates children in mathematics
AddHealth Media AB
An online communication platform for health and well-being
Capcito Finance AB
Pioneering automated financing for small and medium-sized enterprises
SCHIBSTED ANNUAL REPORT 2021
NOTES
70
The following table sets forth summarized financial information for material associates as at 31 December:
2021
2020
Adevinta
Other
Total
Total
Interest held as at 31 December
33.15%
Income statement and statement of comprehensive income:
Operating revenues
3,986
Profit (loss) from continuing operations
(297)
Profit (loss) from discontinued operations
(10)
Profit (loss) attributable to non-controlling interests
10
Profit (loss) attributable to owners of the parent
(318)
Other comprehensive income attributable to owners of the parent
(133)
Total comprehensive income attributable to owners of the parent
(451)
Share of profit (loss) from continuing operations
(105)
(69)
(174)
(32)
Share of other comprehensive income
(44)
5
(39)
(1)
Share of total comprehensive income
(150)
(64)
(214)
(33)
Balance sheet:
Non-current assets
180,567
Current assets
5,134
Non-controlling interests
(170)
Non-current liabilities
(45,444)
Current liabilities
(5,863)
Net assets
134,224
Share of net assets
44,495
Goodwill
23,132
Impairment
(19,998)
Carrying amount as at 31 December
47,630
818
48,447
860
Fair value (if there is a quoted market)
47,630
n/a
Principle
The reportable segments correspond to the management structure and
the internal reporting to the Group's chief operating decision maker,
defined as the CEO. The operating segments reflect an allocation based
on the type of operation.
Schibsted has a new reporting structure effective 1 July 2021. Reportable
operating segments were changed to reflect the internal reporting and
monitoring of the businesses. The previous operating segment Growth was
dissolved, and eCommerce & Distribution was established as a separate
operating segment. In addition was our venture investment portfolio were
gathered under the new operating segment Financial Services & Ventures.
Operating segments and disaggregation of revenues for 2020 were restated
retrospectively to give comparable information.
Schibsted's operating segments are Nordic Marketplaces, News Media,
eCommerce & Distribution and Financial Services & Ventures.
Nordic Marketplaces comprises online classified operations in Norway
(Finn), Sweden (Blocket), Finland (Tori and Oikotie) and Denmark (Bilbasen
and dba). These operations provide technology-based services to connect
buyers and sellers and facilitate transactions, from job offers to real estate,
cars, travel, consumer goods and more. Nordic Marketplaces also includes
adjacent businesses such as Nettbil and Qasa.
News Media comprises news brands such as VG, Aftenposten, Bergens
Tidende in Norway and Aftonbladet and Svenska Dagbladet in Sweden both
in paper and digital formats, in addition to printing plant operations in the
Norwegian market.
eCommerce & Distribution is primarily the distribution operations in
Norway which delivers not only newspapers but also parcels for businesses
and consumers. Helthjem and Morgenlevering are the key eCommerce
brands.
Financial Services & Ventures consists of a portfolio of digital companies.
Lendo is the key brand in the portfolio, offering digital marketplaces for
consumer lending. In addition, Prisjakt offers price comparison for
consumers.
Other / Headquarters comprises operations not included in the other
reported operating segments, including the Group’s headquarter Schibsted
ASA and other centralised functions including Product and Technology.
Eliminations comprise intersegment sales. Transactions between
operating segments are conducted on normal commercial terms.
In the operating segment information presented, Gross operating profit
(loss) is used as measure of operating segment profit (loss). For internal
control and monitoring, Operating profit (loss) is also used as measure of
operating segment profit (loss).
SCHIBSTED ANNUAL REPORT 2021
NOTES
71
2021
Nordic
Marketplaces
News Media
eCommerce &
Distribution
Financial
Services &
Ventures
Other /
Headquarters
Eliminations
Schibsted
Operating revenues
4,176
7,872
1,913
2,026
662
(2,026)
14,623
-of which internal
96
737
524
43
626
(2,026)
-
Gross operating profit (loss)
1,782
961
26
249
(277)
-
2,740
Depreciation and amortisation
(261)
(507)
(47)
(105)
(64)
-
(984)
Share of profit of joint ventures and associates
-
67
(7)
(148)
(105)
-
(193)
Impairment loss
(18)
(1)
(9)
(93)
(19,998)
-
(20,119)
Other income and expenses
(81)
(9)
(2)
263
(14)
-
157
Operating profit (loss)
1,422
512
(39)
165
(20,458)
-
(18,398)
See Note 7 Revenue recognition and Note 12 Other income and expenses for further information.
2020
Nordic
Marketplaces
News Media
eCommerce &
Distribution
Financial
Services &
Ventures
Other /
Headquarters
Eliminations
Schibsted
Operating revenues
3,181
7,459
1,604
1,971
668
(1,975)
12,908
-of which internal
84
739
520
38
594
(1,975)
-
Gross operating profit (loss)
1,336
750
43
270
(272)
-
2,126
Depreciation and amortisation
(182)
(443)
(34)
(99)
(71)
-
(829)
Share of profit of joint ventures and associates
-
50
(2)
(92)
-
-
(44)
Impairment loss
(4)
(1)
(12)
(37)
(7)
-
(61)
Other income and expenses
(108)
30
8
(3)
(18)
-
(90)
Operating profit (loss)
1,043
385
4
38
(368)
-
1,101
See Note 7 Revenue recognition and Note 12 Other income and expenses for further information.
Operating revenues and non-current assets by geographical areas
In presenting geographical information, attribution of operating revenues
is based on the location of the Group's companies. There are no significant
differences between the attribution of operating revenues based on the
location of the Group's companies and an attribution based on customer's
location. Operating revenues presented in the table below are revenues
from external customers. Non-current assets are attributed based on the
geographical location of the asset.
Operating revenues
2021
2020
Norway
8,888
7,663
Sweden
4,982
4,851
Finland
413
255
Denmark
283
49
Other Europe
52
83
Other countries
5
8
Total
14,623
12,908
Non-current operating assets
2021
2020
Norway
3,426
2,483
Sweden
2,302
2,363
Finland
2,053
2,166
Denmark
3,235
1
Other Europe
172
1,106
Other countries
-
-
Total
11,188
8,119
The non-current assets comprise assets, excluding deferred tax assets and financial
instruments, expected to be recovered more than twelve months after the reporting
period.
Principle
IFRS 15 Revenue from Contracts with Customers establishes a five-step
model to account for revenue arising from contracts with customers. The
core principle of the standard is that an entity shall recognise revenue to
depict the transfer of promised goods or services to customers in an
amount that reflects the consideration to which the entity expects to be
entitled in exchange for those goods or services.
Schibsted has applied the following principles for revenue recognition for
the different categories of products and services:
Classifieds
Listing fees in contracts entitling the customer to have an ad displayed for
a defined maximum period of time is recognised over that period,
reflecting the normal pattern of views of such ads. Revenue from premium
products that are active for a defined maximum period is recognised over
that period. Revenue from other premium products benefiting the
customer in a pattern similar to that of a listing fee is recognised over the
applicable period similar to listing fees.
Advertising
Advertising revenues are sales of advertisement space on printed
newspapers and on online sites. Advertising revenue in printed media is
recognised when inserted. Digital advertising revenues on online sites are
recognised as the ads are displayed.
SCHIBSTED ANNUAL REPORT 2021
NOTES
72
Subscription
Subscription revenues include revenues from subscription-based models
including printed and online newspapers. Subscription revenues are
invoiced in advance and recognised upon delivery over the subscription
period.
Casual sales
Casual sales are sales of printed newspapers. Revenue from casual sales
are recognised upon delivery, taking into account estimated future
returns. Accumulated experience is used to estimate such returns at year
end using expected value method.
Revenue is measured at the fair value of the goods or services delivered
or received, depending on which item that can be measured reliably.
Management expects that incremental commission fees paid to
intermediaries as a result of obtaining customer contracts are
recoverable. Schibsted has therefore applied the principle to capitalise
contract costs. Capitalised commission fees are amortised over the period
when related revenues are recognised.
For contributions received accounted for as government grants related to
income under IAS 20, the accounting policy of Schibsted is to recognise
such grants when there is reasonable assurance that the conditions
attaching to the grant will be complied with and that the grants will be
received. The grants are recognised as income unless directly related to
specific items of expense.
Significant judgement and estimation uncertainty
For classified revenues from certain listing fees and premium products
recognised over time, judgement is required in determining the normal
pattern of views for ads displayed for a defined maximum period of time.
The management believes that, based on past experience, a declining
rate is the most appropriate reflection of the normal pattern of views, i.e.
ads are viewed more frequently in the beginning of the period it is
displayed than towards the end of the maximum period. Relevant
contracts applying this recognition principle normally has a duration of
30- 60 days.
Contracts with customers typically have a contract period of one year or
less and do not contain significant variable consideration.
The revenue is measured at the transaction price agreed under the
contract. No element of financing is deemed present as the sales are
normally made with a credit terms of 30-60 days, which is consistent with
market practice. While deferred payment terms exceeding normal credit
terms may be agreed in rare circumstances, the deferral never exceeds
twelve months.
Schibsted has no significant obligations for refunds, warranties and other
similar obligations.
Disaggregation of revenue
In the following table, revenue is disaggregated by category.
2021
Nordic
Marketplaces
News Media
eCommerce
& Distribution
Financial
Services &
Ventures
Other /
Headquarters
Eliminations
Schibsted
Classifieds revenues
3,311
-
-
-
-
(2)
3,309
Advertising revenues
537
2,797
-
171
-
(196)
3,309
-of which digital
537
2,113
-
171
-
(186)
2,634
Subscription revenues
-
2,851
-
243
-
(1)
3,093
-of which digital
-
1,313
-
243
-
-
1,556
Casual sales
-
1,107
-
-
-
-
1,107
Other revenues
325
1,007
1,907
1,613
597
(1,713)
3,736
Revenues from contracts with customers
4,174
7,762
1,907
2,026
597
(1,912)
14,554
Revenues from lease contracts, government
grants and others
2
110
6
-
65
(114)
69
Operating revenues (Note 6)
4,176
7,872
1,913
2,026
662
(2,026)
14,623
In 2021 revenues from lease contracts were NOK 1 million and government grants were NOK 67 million of which NOK 5 million related to COVID-19 measures. Other revenues are
mainly revenues from distribution operations and commissions. Other revenues are mainly revenues from distribution operations and commissions.
SCHIBSTED ANNUAL REPORT 2021
NOTES
73
2020
Nordic
Marketplaces
News Media
eCommerce
& Distribution
Financial
Services &
Ventures
Other /
Headquarters
Eliminations
Schibsted
Classifieds revenues
2,486
-
-
-
-
(1)
2,485
Advertising revenues
449
2,377
-
172
-
(169)
2,829
-of which digital
449
1,694
-
172
-
(162)
2,153
Subscription revenues
-
2,658
2
247
-
(2)
2,905
-of which digital
-
1,088
2
247
-
-
1,336
Casual sales
-
1,256
-
-
-
-
1,256
Other revenues
244
1,015
1,602
1,553
604
(1,692)
3,326
Revenues from contracts with customers
3,179
7,307
1,604
1,971
604
(1,865)
12,800
Revenues from lease contracts, government
grants and others
1
153
-
-
64
(110)
107
Operating revenues (Note 6)
3,181
7,459
1,604
1,971
668
(1,975)
12,908
In 2020 revenues from lease contracts were NOK 8 million and government grants were NOK 99 million, of which NOK 49 million was related to COVID-19 relief measures.
Other revenues are mainly revenues from distribution operations and commissions.
Contract assets and liabilities
The contract assets primarily relate to the Schibsted’s rights to
consideration for advertisements and newspapers delivered but not billed
at the reporting date and have substantially the same risk characteristics as
the trade receivable for the same types of contracts. The contract assets are
transferred to receivables when the rights to consideration from the
customer become unconditional. It is expected insignificant credit loss on
contract assets. The contract liabilities relate to payments received
in advance of performance under subscription, advertising and classified
contracts. Contract liabilities are recognised as revenue when we perform
under the contract.
The following table provides information about receivables and significant
changes in contract assets and contract liabilities from contracts with
customers.
Receivables from
contracts
with customers
Contract assets
Contract
liabilities
Balance as at 1 January 2021
1,183
173
600
Net of cash received and revenues recognised during the period
(112)
242
4
Transfer from contract assets recognised at the beginning of the period to receivables
231
(231)
-
Business combination
19
30
1
Impairment losses recognised
(33)
-
-
Disposals
(20)
1
(39)
Foreign exchange differences
(25)
(4)
(13)
Balance as at 31 December 2021
1,244
210
553
Amounts presented for items of profit or loss in the reconciliation above include amounts related to discontinued operations. The amounts may therefore deviate from similar
line items presented in other parts of this report including amounts related to continuing operations only.
Receivables from
contracts
with customers
Contract assets
Contract
liabilities
Balance as at 1 January 2020
1,927
224
1,109
Net of cash received and revenues recognised during the period
(59)
244
48
Transfer from contract assets recognised at the beginning of the period to receivables
239
(239)
-
Business combination
13
1
12
Impairment losses recognised
(112)
-
-
Disposals
(30)
(8)
(6)
Reclassified as held for sale
(888)
(62)
(612)
Foreign exchange differences
93
13
49
Balance as at 31 December 2020
1,183
173
600
All contracts have duration of one year or less, hence contract liability at the
beginning of the period are recognised as revenue during the period.
Remaining performance obligations at the reporting date have original
expected durations of one year or less. Schibsted applies the practical
expedient in IFRS 15.121 and does not disclose information about
remaining performance obligations that have original expected durations
of one year or less.
Contract costs
In 2021 there were no significant incremental commission fees capitalised
and no impairment loss related to capitalised contract costs was
recognised.
SCHIBSTED ANNUAL REPORT 2021
NOTES
74
2021
2020
Distribution
1,330
1,291
Commissions
747
627
Rent, maintenance, office expenses and energy
207
194
PR, advertising and campaigns
1,202
1,079
Printing contracts
163
181
Editorial material
427
365
Professional fees
847
676
Travelling expenses
92
82
IT expenses
620
617
Other operating expenses
231
311
Total
5,865
5,422
2021
2020
Salaries and wages
4,264
3,833
Social security costs
806
727
Net pension expense (Note 11)
505
459
Share-based payment (Note 10)
69
45
Other personnel expenses
182
138
Capitalised salaries, wages and social security
costs
(341)
(297)
Total
5,486
4,905
Number of full-time equivalents
9,141
9,342
-of which continuing operations
5,511
5,140
-of which discontinued operations
3,630
4,202
Adaption of the Shareholder Rights Directive II (SRD 2)
into Norwegian law.
As of 1 January 2021, Norwegian legislation has adopted the new law
regarding the Shareholder Rights Directive II. In accordance with the new
legislation, the Board of Directors presented a Remuneration Policy for the
Annual General Meeting’s voting in 2021. The Remuneration Policy was
approved by the Annual General Meeting and replaces the Statement of
Executive Compensation. The Remuneration Policy is the guiding and
steering document regarding the executive compensation principles going
forward.
Implementation of the Remuneration Policy is described in the
Remuneration Report and is available on http://www.schibsted.com.
Principle
In equity-settled share-based payment transactions with employees,
the employee services and the corresponding equity increase is
measured by reference to the fair value of the equity instruments
granted. The fair value of the equity instruments is measured at grant
date and is recognised as personnel expenses and equity increase
immediately or over the vesting period when performance vesting
conditions require an employee to serve over a specified time period.
At each reporting date the entities remeasure the estimated number of
equity instruments that is expected to vest. The amount recognised as
an expense is adjusted to reflect the number of equity instruments
which are expected to be, or actually become vested.
In cash-settled share-based payment transactions with employees, the
employee services and the incurred liability is measured at the fair value
of the liability. The employee services and the liability are recognised
immediately or over the vesting period when performance vesting
conditions require an employee to serve over a specified time period.
Until the liability is settled, the fair value of the liability is revised at each
balance sheet date and at settlement date, with changes in fair value
recognised in profit or loss.
Share-based remuneration expense amounts to NOK 69 million
(NOK 45 million). The expense relates to equity-settled share-based
payment programs only, settled in Schibsted B-shares.
The following are the significant active plans directed at key management
personnel:
Plans
Granted
Vesting
period
Performance
period
Number of
participants
ELTIP
2021
01.01.2021-
31.12.2023
01.01.2021-
31.12.2023
12
SLTIP
2021
01.01.2021-
31.12.2023
N/A
153
Legacy
Equity
Plan
2021
25.06.2021-
30.06.2024
N/A
72
LTI
2020
01.01.2020-
31.12.2022
01.01.2020-
31.12.2022
47
LTI
2019
01.01.2019-
31.12.2021
01.01.2019-
31.12.2021
40
LTI
2018
01.01.2018-
31.12.2020
01.01.2018-
31.12.2020
30
Executive LTI Plan (ELTIP)
The Executive LTI Plan (ELTIP) and the Schibsted LTI Plan (SLTIP) were
introduced in 2021. The ELTIP is applicable to the CEO, members of
Schibsted's Executive team and certain other key employees.
The award for the ELTIP consists of two separate elements; a fixed base (the
“Fixed Base”) comprising Restricted Stock equal to 30 percent of the grant
value and a performance related grant (the “Performance Base”) equal to
70 percent of the grant value. The CEO receives a grant equal to 100 percent
of the base salary, whereas other members of Schibsted's Executive team
receive grants between 60 percent and 75 percent. Other participants
receive grants ranging from 20 percent to 35 percent of their base salary.
The Fixed Base is converted into B-shares based on the share price at the
start of the vesting period and transferred to participants at the end of the
vesting period. The vesting period is three years and reflects the required
service period.
SCHIBSTED ANNUAL REPORT 2021
NOTES
75
The Performance Base is vested at the end of the 3-year vesting period
subject to performance and continuous employment and is delivered to
participants in B-shares. The value of any vesting is a factor of Schibsted’s
Total Shareholder Return (“TSR”) performance over a 3-year performance
period relative to the Europe Stoxx 600 index
Vesting of the Performance Base is subject to a minimum performance
threshold whereby Schibsted’s TSR performance must be at or above the
25th percentile when compared to the peer group. Subject to the
performance threshold being met, the Performance Base is vested as
follows:
• At the 25th percentile, the face value of the Performance base vest at
50 percent
• At the 50th percentile, the face value of the Performance Base vest in full
• At or above the 75th percentile, the face value of the Performance Base vest
at 300 percent
• Vesting in-between the above performance milestones will be on a straight-
line basis
Schibsted LTI Plan (SLTIP)
The SLTIP is applicable to the members of management teams in the
business areas as well as other key employees.
The award for SLTIP consists of only one element, which is a fixed base
element (the “Fixed Base”) comprising Restricted Stock equal to
100 percent of the grant value. The participants receive grants normally
ranging from 10 percent to 30 percent of their base salary.
The Fixed Base is converted into B-shares based on the share price at the
start of the vesting period and transferred to participants at the end of the
vesting periods. The award vests in three equal tranches of one, two and
three years reflecting the required service periods.
LTI Plan
The LTI plan, under which grants were made in the years 2018-2020, was
largely similar to the current ELTIP with awards both as a fixed base
element and a performance base element. The plan was applicable to the
CEO, members of Schibsted's Executive team, members of management
teams in the business areas as well as other key employees.
The deviations from the ELTIP are as follows:
• Members of Schibsted's Executive team receive grants between
50 percent and 100 percent. Other participants receive grants normally
ranging from 10 percent to 50 percent of their base salary.
• The fixed base and the performance base were both 50 percent of the
grant value in the LTI plans granted in 2019 and 2020.
• The fixed base was 1/3 and the performance base was 2/3 of the grant
value in the LTI plan granted in 2018.
• The performance base was measured against a peer group composed of
companies involved in online classifieds, but also media companies and
a subset of Europe Stoxx 600 companies.
• The fixed base award in 2018 was transferred to the participants at the
start of the program, albeit with a three-year holding requirement.
Legacy Equity Plan
Following the acquisition of Schibsted Denmark ApS, employees of the
former eBay Classifieds Scandinavia ApS were granted a replacement
award as a substitute for the share-based payments they were entitled to
in the former company. The award consists of a fixed base element
comprising Restricted Stock vesting in seven equal half-yearly tranches
with first tranche vesting 30 June 2021 with vesting contingent on
continued employment. The fair value of the grant attributable to pre-
combination services is recognised as part of the consideration for the
business combination, see Note 4 Changes in the composition of the Group.
Detailed general conditions have been developed to ensure fair and
consistent governance of all the plans; these include change of control
provisions and “good leaver” provisions related to employment. All the
plans also include a clawback mechanism which would permit Schibsted to
cancel unvested shares and/or to require already transferred shares to be
delivered back to the Company.
Such a clawback scenario would include any event whereby Schibsted was
required to restate financial statements during a programme period, for
example due to material non-compliance with applicable accounting rules.
A clawback might also be enforced in the event of fraud or criminal activity,
a breach of a non-competition clause or a breach of Schibsted’s Code of
Conduct by the participant.
The maximum cost of the ELTIP, measured with reference to the maximum
benefit receivable by the participants, will be the awards multiplied by the
implicit maximum pay-out ratio of 2.4. This does not take into account any
share depreciation or appreciation during the vesting period or any
employer’s fees related to the plan.
Number of shares in the share-based programmes settled in Schibsted
shares
1)
:
2021
2020
Number of shares granted, not-vested at 1
January
513,615
357,418
Number of shares granted
275,576
178,440
Number of shares forfeited
(8,999)
(10,778)
Number of shares vested during the period
(143,750)
(52,988)
Adjustments shares granted
2)
(103,758)
41,523
Number of shares not-vested at 31
December
3)
532,684
513,615
Average share price at vesting date (NOK per
share)
357
235
Weighted average fair value at grant date
(NOK per share)
366
201
1) Number of shares includes employee’s tax obligation, which will be deducted and
withheld at transfer of shares to employees.
2) Adjustment shares granted mainly reflects changes in estimated payout from
grant date.
3) An amount of NOK 53 million (NOK 77 million) is estimated to be paid to tax
authorities as part of equity-settled programmes not-vested at 31 December.
Equity-settled share-based payment transactions are measured at the fair
value of the equity instruments granted at the grant date. Fixed base
awards are measured at the quoted price of the shares awarded adjusted
by expected dividend yield. Performance base awards are measured using
an option pricing model supplemented with Monte Carlo Simulation.
Share-saving programme for all Group employees
To motivate and retain employees, all Group employees in Schibsted are
invited to save up to 5 percent, but a maximum of NOK 50,000, annually of
their base gross salary through payroll deductions in order to purchase
shares in Schibsted. The shares are purchased on market terms four times
a year, after the release of Schibsted’s quarterly results. If still employed by
the Group, participants receive one free bonus share from Schibsted per
two shares purchased and held for two years.
SCHIBSTED ANNUAL REPORT 2021
NOTES
76
Principle
Schibsted has both defined contribution plans and defined benefit plans.
In the defined contribution plans, the company pays an agreed annual
contribution to the employee’s pension plan, but any risk related to the
future pension is borne by the employee. In a defined benefit plan, the
company is responsible for paying an agreed pension to the employee
based on his or her final pay, and the risk related to the future pension is
hence borne by Schibsted.
In a defined contribution plan, the pension cost will be equal to the
contribution paid to the employees' pension plan. Once the contributions
have been paid, there are no further payment obligations attached to the
defined contribution pension, i.e. there is no liability to record in the
statement of financial position.
In a defined benefit plan, the net liability recognised is the present value
of the benefit obligation at the balance sheet date, less fair value of plan
assets. The present value of defined benefit obligations, current service
cost and past service cost is determined using the projected unit credit
method and actuarial assumptions regarding demographic variables and
financial variables. Net pension expense includes service cost and net
interest on the net defined benefit liability recognised in profit or loss and
remeasurements of the net defined benefit liability recognised in other
comprehensive income.
Past service cost is the change in the present value of the defined benefit
obligation resulting from a plan amendment or curtailment. Past service
cost is recognised at the earlier date of when the plan amendment or
curtailment occurs and when related restructuring costs or termination
benefits are recognised.
In the cases where a multi-employer plan is classified as defined benefit
plans, but sufficient information is not available to enable recognition as
a defined benefit plan, they are accounted for as if they were defined
contribution plans.
Social security taxes are included in the determination of defined benefit
obligations and net pension expense.
Significant judgement and estimation uncertainty
Defined benefit plans are calculated on the basis of a set of selected
financial and actuarial assumptions. Changes in parameters such as
discount rates, future wage adjustment, etc. could have substantial
impacts on the estimated pension liability.
Schibsted has occupational pension plans in several countries established
partly as defined benefit plans (primarily in Norway), partly as multi-
employer defined benefit plans accounted for as defined contribution plans
(in Norway and Sweden) and partly as defined contribution plans (in
Norway, Sweden and other countries).
Schibsted has its occupational pension plans for its employees in
Norwegian companies with Storebrand Livsforsikring AS. These pension
plans meet the requirements of the Act on Mandatory occupational
pensions applicable to Norwegian companies. A significant part of the
existing funded defined benefit plans is closed.
The terms of the funded defined benefit plans are mainly uniform. The
benefits are mainly dependent upon number of years of employment,
salary level at retirement age and the amount of benefits from the National
Insurance pension. The majority of the funded defined benefit plans
comprise retirement pension for life from 67 years and full retirement
pension amounts to approximately 66 percent of the basis (limited to 12G,
the social security base amount) including assumed pension from the
National Insurance pension (based on calculated National Insurance
pension). Some of the plans include spouse pension, child pension and
disability pension.
As at 31 December 2021 the funded defined benefit plans in Norway
covered approximately 609 working members (642 in 2020) and 0 retirees
(0 retirees in 2020). Estimated contributions in 2022 to the above
mentioned funded defined benefit plans amount to approximately
NOK 64 million. Future contributions will be dependent on the
accumulation period for each member's pension rights according to the
principle of linear accumulation.
The terms related to contributions to defined contribution plans in Norway
are mainly uniform, and for most companies the contribution in 2021
amounts to 5.55 percent of salaries within the interval from 1G to 7.1G and
8 percent in the interval from 7.1G to 12G. The plans include disability
pension.
In addition to the pension obligations that arises from the funded defined
benefit plans, the Group's Norwegian companies have unfunded defined
benefit obligations related to disability pensions (if not covered by other
pension plans or insurances), supplementary pensions for salaries above
12G, Agreement-based pension (AFP) and early retirement pensions.
The Group's companies outside Norway have pension plans, mainly
defined contribution plans, in accordance with local practice and local
legislation.
The Group has certain pension schemes in Norway and Sweden established
as multi-employer plans. These multi-employer plans are defined benefit
plans, but the Group does not have access to the necessary information for
the accounting years 2021 and 2020 required to account for these plans as
defined benefit plans, and the plans are therefore accounted for as defined
contribution plans.
SCHIBSTED ANNUAL REPORT 2021
NOTES
77
The amounts recognised in income statement and in comprehensive income:
2021
2020
Current service cost
80
84
Past service cost and gains and losses arising from settlements
(17)
(22)
Net interest on the net defined benefit liability (asset)
16
20
Remeasurements of the net defined benefit liability
30
147
Net pension expense defined benefit plans
109
229
Pension expense defined contribution plans
308
269
Pension expense multi-employer defined benefit plans accounted for as defined contribution plans
119
106
Net pension expense
536
604
-of which included in Profit or loss - Personnel expenses (Note 9)
505
459
-of which included in Profit or loss - Other income (Note 12)
(15)
(21)
-of which included in Profit or loss - Financial expenses (Note 13)
16
20
-of which included in Other comprehensive income - Remeasurements of defined pension liabilities
30
147
Past service cost comprise restructuring costs in the form of pensions as well as the effect of plan amendments.
The amounts recognised in the statement of financial position:
2021
2020
Present value of funded defined benefit obligations
1,499
1,533
Fair value of plan assets
(1,170)
(1,117)
Present value of unfunded defined benefit obligations
762
739
Net pension liability
1,090
1,154
The average duration of the defined benefit plan obligations at the end of the reporting period is 14 years (16 years).
Changes in net pension liability, present value of defined benefit obligations and plan assets:
2021
2020
Net pension
liability
Defined
benefit
obligations
Plan assets
Net pension
liability
Defined
benefit
obligations
Plan assets
As at 1 January
1,154
2,271
1,117
1,095
2,176
1,081
Current service cost
90
90
-
102
102
-
Past service cost and gains and losses arising from
settlements
(17)
(85)
(68)
(22)
(75)
(53)
Interest income and expense
16
36
20
20
45
25
Remeasurements (see below)
31
23
(7)
148
156
8
Contributions to the plan
(112)
2
114
(62)
2
64
Payments from the plan
(40)
(41)
(1)
(48)
(49)
(1)
Reclassified as held for sale
-
-
-
(78)
(78)
-
Business combinations and disposals
(10)
(14)
(4)
12
6
(6)
Social security costs
(21)
(21)
-
(15)
(15)
-
Foreign exchange differences
-
-
-
3
3
-
As at 31 December
1,090
2,261
1,171
1,154
2,271
1,117
Amounts presented for items of profit or loss in the reconciliation above include amounts related to discontinued operations. The amounts may therefore
deviate from similar line items presented in other parts of this report including amounts related to continuing operations only.
Remeasurements of defined benefit pension obligations include:
2021
2020
Actuarial gains and losses arising from changes in financial assumptions
28
173
Other remeasurements (experience adjustments)
(5)
(18)
Remeasurements of defined benefit pension obligations
23
156
Remeasurements of fair value of plan assets include:
2021
2020
Return on plan assets, excluding amounts included in interest
32
9
Cost of managing plan assets
(6)
(6)
Other remeasurements (experience adjustments)
(33)
5
Remeasurements of fair value of plan assets
(7)
8
SCHIBSTED ANNUAL REPORT 2021
NOTES
78
The fair value of plan assets is disaggregated by class:
2021
Quoted in
active
markets
Unquoted
2020
Quoted in
active
markets
Unquoted
Equities
12%
90%
10%
9%
90%
10%
Alternative investments
1%
-
100%
0%
-
100%
Real estate
13%
-
100%
15%
-
100%
Bonds
7%
95%
5%
10%
95%
5%
Corporate bonds
17%
80%
20%
22%
80%
20%
Bonds - loans and receivables
39%
80%
20%
35%
80%
20%
Money market / other
10%
100%
-
9%
100%
-
Total
100 %
100%
The actual return on plan assets (value-adjusted return on relevant portfolio of assets) was approximately 3.7 percent in 2021 and approximately 5.6 percent in 2020.
Significant actuarial assumptions used to determine the present value of the defined benefit obligation:
2021
2020
Discount rate
1.90%
1.70%
Future salary increases
2.75%
2.25%
Future increase in the social security base amount
2.50%
2.00%
Future pension increases
0.00%
0.00%
Schibsted determines the discount rate by reference to high quality corporate bonds. Schibsted has concluded that a deep market exists for covered bonds ("OMF-obligasjoner")
in Norway and that this interest rate therefore shall be used as reference under IAS 19 Employee benefits. The assumption regarding expected pension increases is used for pensions
being increased in accordance with the Act on Company pensions. For pension agreements containing specific clauses on increases in pension, those clauses are applied.
Sensitivity analysis, indicating increase (decrease) in present value of defined benefit pension liabilities, for significant actuarial assumptions:
2021
2020
Discount rate - increase 0.5 percentage points
(223)
(224)
Discount rate - decrease 0.5 percentage points
259
261
Future salary increases - increase 0.5 percentage points
142
148
Future salary increases - decrease 0.5 percentage points
(135)
(140)
Future increase in social security base amount - increase 0.5 percentage points
(60)
(63)
Future increase in social security base amount - decrease 0.5 percentage points
53
57
Future pension increases - increase 0.5 percentage points
159
160
Future pension increases - decrease 0.5 percentage points*
(39)
(36)
* a further reduction of 0.50 percent would have no effect for companies that already apply 0.00 percent.
Any increases or decreases in present value of defined benefit pension liabilities from changes in actuarial assumptions are recognised in Other
comprehensive income.
SCHIBSTED ANNUAL REPORT 2021
NOTES
79
Principle
Income and expenses of a special nature are presented on a separate
line within operating profit (loss). Such items are characterised by being
transactions and events not being reliable indicators of underlying
operations. Other income and expenses include items such as
restructuring costs, acquisition-related costs, gains or losses on sale or
remeasurement of assets, investments or operations and other.
Acquisition-related costs may include both costs related to acquisitions
closed and transactions that were not completed.
In 2021 Schibsted recognised gains of NOK 249 million on sale of subsidiaries,
joint ventures and associates. This was mainly related to the sale of Kundkraft
Sverige AB and the reclassification of eEducation Albert AB from associate to
equity instrument following their IPO. Loss on sale of subsidiaries, joint
ventures and associates is related to sale of Let’s Deal AB and Mötesplatsen i
Norden AB. Restructuring costs are mainly expenses related to headcount
reductions in News Media. Gain on amendments and curtailment of pension
plans includes gain on curtailment of pension plans related to restructuring
of NOK 15 million. Transaction-related costs mainly relate to the integration
of the acquired operations in Marketplaces Denmark.
2021
2020
Gain on sale of subsidiaries, joint ventures
and associates
249
75
Gain on sale of intangible assets, property,
plant and equipment and investment
property
2
51
Gain on amendments and curtailment of
pension plans
15
21
Gain on remeasurement of previously held
equity interest in business combination
51
-
Other
11
-
Total other income
328
146
Restructuring costs
(52)
(134)
Transaction-related costs
(80)
(101)
Loss on sale of subsidiaries, joint ventures
and associates
(34)
(2)
Other
(5)
-
Total other expenses
(171)
(237)
Financial income and expenses consist of:
2021
2020
Interest income
8
29
Net foreign exchange gain
-
3
Gain from fair value measurement of financial
instruments
16
-
Other financial income
4
5
Total financial income
28
37
Interest expenses
(202)
(176)
Net foreign exchange loss
(6)
-
Loss from fair value measurement of financial
instruments
(17)
-
Other financial expenses
(22)
(21)
Total financial expenses
(248)
(197)
Net financial items
(220)
(161)
Net foreign exchange gain (loss) consists
of:
Net foreign exchange gain (loss) currency
derivatives
(15)
(6)
Net foreign exchange gain (loss) other
financial instruments
8
9
Net foreign exchange gain (loss)
(6)
3
Schibsted hedges the majority of its currency exposure by using loans and
derivatives, see Note 25 Financial risk management.
Interest expenses relate to:
2021
2020
Loans and borrowings
(127)
(88)
Pension liabilities (Note 11)
(16)
(20)
Lease liabilities (Note 19)
(57)
(65)
Put options and contingent considerations
(Note 23)
(3)
(3)
Interest expenses
(202)
(176)
Financial income and financial expenses include the following amounts of
interest income and interest expenses related to financial assets and
liabilities that are not included in the category Financial assets or financial
liabilities at fair value through profit or loss:
2021
2020
Interest income
8
29
Interest expenses
(197)
(170)
SCHIBSTED ANNUAL REPORT 2021
NOTES
80
Principle
Current tax liabilities and assets are measured at the amount that is
expected to be paid to or recovered from the tax authorities.
Deferred tax liabilities and assets are computed for all temporary
differences between the tax basis and the carrying amount of an asset or
liability in the consolidated financial statements and the tax basis of tax
losses carried forward. For deferred tax assets and liabilities, the nominal
tax rates expected to apply when the asset is realised or the liability is paid
will be used.
Deferred tax assets relating to tax deficits and other tax-reducing
temporary differences are recognised to the extent that it is probable that
they can be applied against future taxable income.
Deferred tax liabilities for temporary differences associated with
investments in subsidiaries, associates and joint ventures are recognised
when it is probable that the temporary difference will reverse in the
foreseeable future. Deferred tax liabilities are not recognised for the initial
recognition of goodwill.
Tax expense (tax income) comprises current tax expense (current tax
income) and deferred tax expense (deferred tax income). Any amount
recognised as current tax assets or liabilities and deferred tax assets or
liabilities are recognised in profit or loss, except to the extent that the tax
arises from a transaction or event recognised in other comprehensive
income or directly in equity or arises from a business combination.
Significant judgement and estimation uncertainty
Judgement is required to determine the amount of deferred tax assets
that can be recognised, based upon the likely timing and the level of
future taxable profits together with tax planning strategies. For
unrecognised deferred tax assets see table below.
The Group’s income tax expense comprises the following:
2021
2020
Current income taxes
(283)
(267)
Deferred income taxes
(52)
496
Tax (expense) income
(334)
229
-of which recognised in profit or loss
(280)
128
-of which recognised in other comprehensive
income
(54)
102
The relationship between tax expense and accounting profit (loss)
before taxes is as follows:
2021
2020
Profit (loss) before taxes
(18,618)
941
Tax (expense) income based on weighted
average tax rates
4,103
(211)
Prior period adjustments
(1)
(3)
Tax effect of share of profit (loss) from joint
ventures and associates
(41)
(9)
Tax effect of impairment loss on goodwill,
joint ventures and associates
(4,419)
(7)
Tax effect of other permanent differences
84
1
Current period unrecognised deferred tax
assets
(20)
(36)
Re-assessment of previously unrecognised
deferred tax assets
13
393
Tax (expense) income recognised in profit
or loss
(280)
128
Profit (loss) before taxes in 2021 was negatively affected by impairment loss
of NOK -20,012 million. This consists mainly of the impairment of
investments in associates Adevinta, see Note 5 Investments in joint
ventures and associates for further information. Tax effect of impairment
loss on goodwill, joint ventures and associates relates primarily to the
write-down of investment in Adevinta.
Tax effect of other permanent differences include tax effects from hedge
accounting, gain from remeasurement of previously held equity interests,
gains (losses) on sale of subsidiaries, joint ventures and associated
companies, tax-free dividends and other non-deductible operating
expenses. Such gains (losses) are recognised in Other income and
expenses.
The Group’s net deferred tax liabilities (assets) are made up as
follows:
2021
2020
Current items
(14)
(11)
Pension liabilities
(240)
(250)
Other non-current items
223
(12)
Unused tax losses
(121)
(138)
Calculated net deferred tax liabilities
(assets)
(152)
(411)
Unrecognised deferred tax assets
107
72
Net deferred tax liabilities (assets)
recognised
(44)
(340)
-of which deferred tax liabilities
576
351
-of which deferred tax assets
(621)
(690)
The Group’s unused tax losses are mainly related to operations in Austria,
Denmark, Finland and Norway. Approximately 50 percent of the unused tax
losses expire during the period until 2026, 10 percent expire during the
period between 2027 to 2031 and 40 percent do not expire.
The Group’s deferred tax assets recognised are primarily related to
deductible future pension payments and excess tax depreciation in
Norwegian operations. The Group is making taxable profits in Norway and
sufficient future taxable income is expected to be available in future periods
to realise the tax benefits recognised. The Group's unrecognised deferred
tax assets are mainly related to foreign operations with recent tax losses
where future taxable profits may not be available before those unused tax
losses expire. Deferred tax liabilities and assets are offset for liabilities and
assets in companies which are included in local tax groups.
SCHIBSTED ANNUAL REPORT 2021
NOTES
81
The development in the recognised net deferred tax liabilities (assets)
is as follows:
2021
2020
As at 1 January
(339)
765
Change included in tax expenses from
continuing operations
52
(496)
Change included in tax expenses from
discontinued operations
87
(188)
Change from purchase and sale of
subsidiaries
179
167
Reclassified as held for sale
-
(649)
Foreign exchange differences
(23)
63
As at 31 December
(44)
(339)
Principle
Basic and diluted earnings per share are presented for ordinary shares.
The A-shares and B-shares of Schibsted have equal rights to share in profit
for the period and are therefore treated as being one class of ordinary
shares in relation to calculation of earnings per share.
Basic earnings per share is calculated by dividing profit (loss) attributable
to the owners of the parent by the weighted average number of shares
outstanding.
In calculating diluted earnings per share, the profit (loss) attributable to
owners of the parent and the weighted average number of shares
outstanding are adjusted for the effects of any dilutive potential shares.
The profit (loss) attributable to owners of the parent is adjusted for the
dilutive effect of any potential shares convertible into shares of
subsidiaries, joint ventures or associates.
The weighted average number of shares outstanding is adjusted as
follows:
• For share-based payment transactions with performance conditions,
by including the number of shares that would be issuable at the
reporting date
• For any other share-based payment transactions, by including the
excess of the total number of potential shares over the number of
shares that could be issued out of the issue proceeds
Weighted average number of shares
2021
2020
Weighted average number of shares for basic earnings per share
233,959,102
233,867,926
Effects of dilution from share-based payment
402,355
507,778
Weighted average number of shares for diluted earnings per share
234,361,457
234,375,704
Earnings per share - total
Profit (loss) attributable to owners of the parent for basic earnings per share
41,341
858
Effect of potential shares convertible into shares of subsidiaries, joint ventures or associates
-
1
Profit (loss) attributable to owners of the parent for diluted earnings per share
41,341
859
Earnings per share - basic (NOK)
176.70
3.67
Earnings per share - diluted (NOK)
176.40
3.66
Earnings per share - continuing operations
Profit (loss) attributable to owners of the parent for basic earnings per share
(18,986)
1,006
Profit (loss) attributable to owners of the parent for diluted earnings per share
(18,986)
1,006
Earnings per share - basic (NOK)
(81.15)
4.30
Earnings per share - diluted (NOK)
(81.01)
4.29
SCHIBSTED ANNUAL REPORT 2021
NOTES
82
Principle
Property, plant, equipment, intangible assets and goodwill are reviewed
for impairment whenever an indication that the carrying amount may not
be recoverable is identified. Goodwill and other intangible assets that
have an indefinite useful life are tested annually for impairment.
Impairment indicators will typically be changes in market developments,
competitive situation or technological developments. An impairment loss
is recognised in the income statement if the carrying amount of an asset
(cash-generating unit) exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs of disposal and
value in use.
Value in use is assessed by discounting estimated future cash flows.
Estimated cash flows are based on management’s experience and market
knowledge for the given period, normally five years. For subsequent
periods growth factors are used that do not exceed the long-term average
rate of growth for the relevant market. Expected cash flows are
discounted using an after tax discount rate that takes into account the
expected long-term interest rate with the addition of a risk margin
appropriate for the assets being tested.
For the purpose of impairment testing, assets, except goodwill, are
grouped together into the smallest group of assets that generates
independent cash flows (cash-generating units). Goodwill is allocated to
the cash-generating units, or groups of cash-generating units, that is
expected to benefit from the synergies of the combination. Testing for
impairment of goodwill is done by comparing recoverable amount and
carrying amount of the same groups of cash-generating units as to which
goodwill is allocated.
Impairment losses recognised in respect of cash-generating units are
allocated first to reduce the carrying amount of any goodwill. Any
remaining amount is then allocated to reduce the carrying amounts of the
other assets in the unit on a pro rata basis. Impairment losses are reversed
if the loss no longer exists for all property, plant and equipment and
intangible assets with the exception of goodwill where impairment losses
are not reversed.
Significant judgement and estimation uncertainty
The valuation of intangible assets in connection with business
combinations and the testing of intangible assets for impairment will to a
large extent be based on estimated future cash flows. Correspondingly,
the expected useful lives and residual values included in the calculation
of depreciation and amortisation will be based on estimates.
The Group has activities within established media, but is also active in
establishing positions at an early point in time in new media channels
through both business combinations and its own start-ups. Estimates
related to future cash flows and the determination of discount rates to
calculate present values are based on management’s expectations on
market developments, the competitive situation, technological
development, the ability to realise synergies, interest rate levels and other
relevant factors.
The risk of changes in expected cash flows that affect the financial
statements will naturally be higher in markets in an early phase and be
more limited in established markets. Furthermore, the risk of changes will
be significantly higher in periods with uncertain macroeconomic
prognosis.
The structural changes in media consumption, with accelerated
migration from print to digital results in pressure on profits and cash flows
for the media houses in Norway and Sweden. Rapid adaption of the
business model and cost base is required to be relevant and profitable in
the digital future. Inability to convert print cash flows to digital cash flows
can consequently lead to a negative adjustment to the Group's cash flows.
Climate related risks has been considered when preparing projections
and growth assumptions applied for impairment testing.
The outbreak of the COVID-19 pandemic in the beginning of 2020
increased the uncertainty associated with assumptions applied for future
cash flow projections and estimates dependent on assumptions about
the development of risk-free rate. The uncertainty regarding the effects
of the COVID-19 pandemic has significantly decreased compared to the
uncertain situation in the beginning of the pandemic.
Goodwill and trademarks with indefinite expected useful life specified on cash-generating units:
Goodwill
Trademarks, indefinite
Operating segment
2021
2020
2021
2020
Marketplaces - Sweden
Nordic Marketplaces
935
922
-
-
Marketplaces - Finland
Nordic Marketplaces
1,118
1,172
540
566
Marketplaces - Norway
Nordic Marketplaces
549
549
-
-
Marketplaces - Denmark
Nordic Marketplaces
2,077
-
882
-
News Media - Sweden*
News Media
598
442
18
17
News Media - Norway
News Media
280
242
350
350
Compricer
Financial Services &
Ventures
31
128
50
53
Other CGUs*
Financial Services &
Ventures
75
118
32
38
eCommerce & Distribution*
eCommerce &
Distribution
55
55
-
-
Total
5,718
3,628
1,873
1,024
*Following the changes in operating segments in 2021 (see Note 6) the allocation of CGUs on the different operating segments have been updated and 2020 figures have been
restated accordingly.
SCHIBSTED ANNUAL REPORT 2021
NOTES
83
Impairment testing / Impairment assessments
Schibsted recognised impairment losses in continuing operations related
to goodwill of NOK 91 million in 2021 and NOK 2 million in 2020. Impairment
loss in 2021 is related to Compricer in Sweden. Part of the long term
strategy for Compricer is to convert sales from a low margin call center
operation, towards online sales with higher margins. The revised cash flow
projections reflects that the digital transformation of the business is
developing slower than expected. As the remaining carrying amount of
Compricer is low, any reasonable changes in the assumed pre-tax discount
rate or sustained growth would not entail a significant additional
impairment.
The carrying amounts of goodwill and other intangible assets with
indefinite useful lives are disclosed above. Recoverable amounts of cash
generating units are estimated based on value in use. Discount rates
applied takes into consideration the risk-free interest rate and risk
premium for the relevant country as well as any business specific risks not
reflected in estimated cash flows. Expected sustained growth reflects
expected growth for the relevant market.
In estimating cash flows used in calculating value in use, consideration is
given to the competitive situation, current developments in revenues and
margins, trends and macroeconomic expectations for the relevant area of
operations.
The cash flow projections for News Media assumes a continued conversion
towards digital revenues and continued strong digital growth. Risks related
to obsolete assets relating to printing operations is limited as carrying
amounts are not significant and the remaining depreciation period is short.
For impairment testing of intangible assets included in the recently
acquired operations in Nordic Marketplaces Finland and Nordic
Marketplaces Denmark (acquired in 2020 and 2021 respectively) the
estimated value-in-use is close to the carrying amount of the investments.
Consequently, there is a higher risk that a reasonable change in the
significant assumptions could lead to an impairment.
Marketplaces Finland comprises Tori and the operations of Oikotie
acquired in 2020. The estimated value-in-use is sensitive to changes in
assumptions used for future cash flows which are uncertain. The projected
cash flows assume growth for all verticals, especially the real estate and
generalist vertical. The estimated value-in-use is also sensitive to changes
in discount rates and sustained growth assumptions. An increase in pre-tax
discount rate with 1 percentage point and simultaneous decrease of
sustained growth with 1 percentage point would entail an impairment of
approximately NOK 280 million.
The projected cash flows for Nordic Marketplaces Denmark are based on
the assumption that the decline in revenues experienced in 2021 due to
challenging market conditions, with low car dealer inventory and high
turnover, will affect revenues negatively in 2022 but then gradually
recover. The estimated value-in-use is also sensitive to changes in discount
rates and sustained growth assumptions. An increase in pre-tax discount
rate with 1 percentage point and simultaneous decrease of sustained
growth with 1 percentage point would entail an impairment of
approximately NOK 450 million.
For all cash-generating units pre-tax discount rates are determined by
country and are in the range between 7.5 percent and 9.4 percent.
Sustained growth is determined by cash generating unit and does not
exceed 2 percent.
In the discount rates the cost of financing is assumed to be stable at the
current level, implying that it is assumed that Schibsted in the future will
have access to financing with sustainability linked KPI's and to obtain the
current credit rating.
For impairment loss related to investments in joint ventures and associates
see Note 5 Investments in joint ventures and associates.
Principle
Intangible assets are measured at its cost less accumulated amortisation
and accumulated impairment losses. Amortisation of intangible assets
with a definite useful life is allocated on a systematic basis over its useful
life. Intangible assets with an indefinite useful life are not amortised. Costs
of developing software and other intangible assets are recognised as an
expense until all requirements for recognition as an asset are met. The
requirements for recognition as an asset include, among other
requirements, the requirement to demonstrate probable future economic
benefits and the requirement that the cost of the asset can be measured
reliably. Costs incurred after the time that all the requirements for
recognition as an asset are met are recognised as an asset. The cost of an
internally generated intangible asset is the sum of expenditure incurred
from the time all requirements for recognition as an asset are met and
until the time the asset is capable of operating in the manner intended by
management.
Subsequent expenditure incurred in the operating stage to enhance or
maintain an intangible asset are normally recognised as an expense as the
requirement to demonstrate probable increased economic benefits will
normally not be met.
Intangible assets with a finite expected useful life are as a general rule
amortised on a straight line basis over the expected useful life. The
amortisation period of software and licenses is normally 3 years, and 1.5-
10 years is used for Other intangible assets. The amortisation method,
expected useful life and any residual value are assessed annually.
Significant judgement and estimation uncertainty
Schibsted has significant activities related to developing new technology
to facilitate digital transformation and the strategy of forming identity-
based ecosystems and products that improve the ability to offer targeted
advertising and personalised products for customers within both online
marketplaces and news. Costs of developing such technology is expensed
until all requirements for recognition as an asset is met. When
requirements for recognition as an asset are met, the costs are
capitalised. The requirements for recognition as an asset include the
requirement to demonstrate probable future economic benefits and the
requirement that the cost of the asset can be measured reliably.
Determining whether cost shall be charged to expense or be recognised
as an asset based on the existing requirements involves the use of
judgement by management.
SCHIBSTED ANNUAL REPORT 2021
NOTES
84
Development in net carrying amount in 2021
Goodwill
Trademarks,
indefinite
Trademarks,
definite
Software and
licenses
Customer
relations
Total
As at 1 January
3,628
1,024
6
1,014
346
6,018
Additions
-
-
-
790
-
790
Acquired through business combinations
2,433
902
-
113
252
3,699
Disposals
-
-
-
-
-
-
Disposals on sale of businesses
(74)
(7)
-
(240)
(1)
(321)
Amortisation from continuing operations
-
-
(2)
(434)
(54)
(490)
Impairment loss from continuing operations
(91)
-
-
(26)
-
(117)
Foreign exchange differences
(178)
(46)
-
(22)
(19)
(266)
As at 31 December
5,718
1,873
4
1,194
524
9,313
-of which accumulated cost
6,508
1,881
21
3,012
628
12,050
-of which accumulated amortisation and impairment loss
(790)
(8)
(17)
(1,818)
(104)
(2,737)
Development in net carrying amount in 2020
Goodwill
Trademarks,
indefinite
Trademarks,
definite
Software and
licenses
Customer
relations
Total
As at 1 January
12,227
3,363
30
1,627
122
17,369
Additions
-
-
-
902
-
903
Acquired through business combinations
1,210
575
-
59
364
2,208
Disposals
-
-
-
(14)
(1)
(15)
Disposals on sale of businesses
(229)
(27)
-
(13)
-
(268)
Reclassified as held for sale
(10,255)
(3,063)
(21)
(1,047)
(97)
(14,483)
Amortisation from continuing operations
-
-
(5)
(376)
(21)
(402)
Amortisation from discontinued operations
-
-
(2)
(164)
(24)
(191)
Impairment loss from continuing operations
(2)
-
-
(29)
-
(31)
Foreign exchange differences
676
177
4
69
2
929
As at 31 December
3,628
1,024
6
1,014
346
6,018
-of which accumulated cost
4,372
1,032
23
2,640
399
8,466
-of which accumulated amortisation and impairment loss
(744)
(8)
(17)
(1,626)
(53)
(2,447)
Additions in software and licenses mainly consists of internally developed intangible assets. Research and development expenditure that do not meet the
criteria for recognition as intangible assets are recognised as an expense when incurred. Such investments and maintenance of existing software reduced
Gross operating profit by approximately NOK 760 million in 2021 and NOK 694 million in 2020. For information on impairment loss on goodwill see
Note 16 Impairment assessments. For information regarding amortisation of right-of-use assets, see Note 19 Leases.
Principle
Property, plant and equipment are measured at its cost less accumulated
depreciation and accumulated impairment losses.
Property that is not owner-occupied, but held to earn rentals or for capital
appreciation is classified as investment property. Investment property is
measured at cost less accumulated depreciation and accumulated
impairment losses.
The depreciable amount (cost less residual value) of property, plant and
equipment is allocated on a systematic basis over its useful life. Each part
of an item of property, plant and equipment with a cost that is significant
in relation to the total cost of the item, is depreciated separately.
Costs of repairs and maintenance are recognised in profit or loss as
incurred. Cost of replacements and improvements are recognised in the
carrying amount of the asset.
The carrying amount of an item of property, plant and equipment is
derecognised on disposal or when no economic benefits are expected
from its use or disposal. Gain or loss arising from derecognition is included
in profit or loss when the item is derecognised.
Property, plant and equipment are depreciated on a straight-line basis
over their estimated useful life. Depreciation schedules reflect the assets'
residual value. Items of property, plant and equipment where material
components can be identified with different useful life are depreciated
over the individual component's expected useful life. Buildings (25-50
years), Plant and machinery (5-20 years), Equipment, furniture and similar
assets (3-10 years). The depreciation method, expected useful life and any
residual value are reviewed annually.
SCHIBSTED ANNUAL REPORT 2021
NOTES
85
Development in net carrying amount in 2021
Buildings and
land
Plant and
machinery
Equipment,
furniture and
similar assets
Total
As at 1 January
102
75
302
480
Additions
3
58
152
212
Acquired through business combinations
3
-
4
6
Disposals
(6)
-
(2)
(8)
Disposals on sale of businesses
-
-
(19)
(19)
Depreciation from continuing operations
(3)
(39)
(102)
(145)
Impairment loss from continuing operations
-
-
(2)
(2)
Foreign exchange differences
-
-
(5)
(5)
As at 31 December
99
93
328
520
-of which accumulated cost
273
1,761
776
2,810
-of which accumulated depreciation and impairment loss
(174)
(1,668)
(448)
(2,290)
Development in net carrying amount in 2020
Buildings and
land
Investment
properties
Plant and
machinery
Equipment,
furniture and
similar assets
Total
As at 1 January
106
103
95
545
849
Additions
-
-
4
154
158
Acquired through business combinations
-
-
-
2
2
Disposals
-
(101)
-
(19)
(120)
Disposals on sale of businesses
-
-
-
(7)
(7)
Reclassified as held for sale
-
-
-
(242)
(242)
Depreciation from continuing operations
(3)
(1)
(24)
(102)
(130)
Depreciation from discontinued operations
-
-
-
(49)
(49)
Impairment loss from continuing operations
-
-
-
(1)
(1)
Foreign exchange differences
-
-
-
21
21
As at 31 December
102
-
75
302
480
-of which accumulated cost
273
-
1,704
775
2,752
-of which accumulated depreciation and impairment loss
(171)
-
(1,628)
(473)
(2,272)
Principle
Schibsted assesses at contract inception whether a contract is, or
contains, a lease. For short-term leases and leases of low-value assets,
lease payments are recognised as an expense on a straight-line basis or
other systematic basis over the lease term. All other leases are accounted
for under a single on-balance sheet model implying recognition of lease
liabilities and right-of-use assets as further described below. The Group
separates non-lease components from lease components and accounts
for each component separately.
At the commencement date of a lease, a lease liability is recognised for
the net present value of remaining lease payments to be made over the
lease term. The present value is calculated using the incremental
borrowing rate if the interest rate implicit in the lease is not readily
determinable. The lease term is the non-cancellable period of the lease
together with periods covered by an option to extend being reasonably
certain to be exercised by the Group and periods covered by an option to
terminate being not reasonably certain to be exercised by the Group.
Lease payments include penalties for terminating leases if the lease term
reflects the exercise of such an option.
At the commencement date of a lease, a right-of-use asset, representing
the right to use the underlying asset during the lease term, is recognised
at cost. The cost of the right-of-use asset includes the amount of the lease
liability recognised, any initial direct costs incurred, and lease payments
made on or before the commencement date less any lease incentives
received.
Lease liabilities are subsequently increased by interest expenses and
reduced by lease payments made. In addition, the carrying amount of
lease liabilities are remeasured if there is a modification, a change in the
lease term or a change in the future lease payments.
Right-of-use assets are subsequently measured at cost less any
accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease term and the estimated
useful life of the underlying asset.
Schibsted mainly has lease contracts for office buildings and vehicles
used in its operations. For most leases of office equipment, like personal
computers, photocopiers and coffee machines Schibsted has applied the
recognition exemption for leases of low-value assets (below NOK 50 000).
Leases of office buildings generally have lease terms between 3 and 15
years, while motor vehicles generally have lease terms between 3 and 5
years.
SCHIBSTED ANNUAL REPORT 2021
NOTES
86
Significant judgement and estimation uncertainty
The group has several lease contracts that include extension and
termination options. These options are negotiated by management to
provide flexibility in managing the leased-asset portfolio and align with
the Group's business needs. Management exercises significant judgement
in determining whether these extension and termination options are
reasonably certain to be exercised. The judgement relates to whether
there are economic incentives making it reasonable certain that an option
will be used. For office buildings, it is usually not viewed as reasonably
certain that an extension option will be exercised if the extension option
is at market rent or above.
Schibsted cannot readily determine the interest rate implicit in the lease,
therefore it uses its incremental borrowing rate (IBR) to measure lease
liabilities. IBR is estimated using observable inputs, such as market
interest rates, when available. It is required to make certain entity-specific
estimates such as the subsidiary’s stand-alone credit rating.
Effects of leases on the consolidated statements
The Group's leases are primarily related to office buildings. Leases of a printing plant, cars and forklifts are also recognised, while leases of office equipment,
like personal computers, photocopiers and coffee machines to a large degree are considered of low value and not included. Variable lease payments are
insignificant.
The most significant leases are:
Address
User of the office building
End of lease term
Akersgata 55, Oslo
Norwegian group companies (Aftenposten, VG, headquarter functions)
2030
Västra Järnvägsgatan 21, Stockholm
Swedish group companies (Blocket, Aftonbladet, Svenska Dagbladet, Lendo)
2023
Grensen 5-7, Oslo
Finn.no
2030
Sandakerveien 121, Oslo
Schibsted Trykk Oslo
2025
Income statement
The following amounts relating to leases are recognised in profit or loss:
2021
2020
Expense related to short-term leases and low value assets
-
-
Gross operating profit (loss)
-
-
Depreciation of right-of-use asset
(349)
(297)
Operating profit (loss)
(349)
(297)
Interest expense on lease liabilities
(57)
(65)
Profit (loss) before taxes
(406)
(363)
Statement of financial position
Set out below are the carrying amounts of right-of-use assets and the movements during the period:
Buildings and
land
Equipment,
furniture and
similar assets
Total
As at 1 January 2020
2,301
16
2,317
Additions
676
17
693
Partial or full termination
(25)
(2)
(27)
Depreciation from continuing operations
(291)
(6)
(297)
Depreciation from discontinued operations
(90)
(7)
(97)
Reclassified as held for sale
(989)
(11)
(1,000)
Foreign exchange differences
29
1
31
As at 31 December 2020
1,612
8
1,620
As at 1 January 2021
1,612
8
1,620
Additions
130
6
136
Acquired through business combinations
11
-
11
Disposals on sale of businesses
-
(3)
(3)
Partial or full termination
(47)
-
(47)
Depreciation from continuing operations
(343)
(5)
(348)
Depreciation from discontinued operations
-
-
-
Foreign exchange differences
(14)
-
(14)
As at 31 December 2021
1,349
6
1,355
SCHIBSTED ANNUAL REPORT 2021
NOTES
87
Following the decision to move the printing operations from Nydalen
during 2023, Schibsted has reassessed the estimated remaining useful lives
of right-of-use assets utilised in the printing operations. The change in the
remaining useful life will lead to increased depreciation cost with
approximately NOK 49 million in 2022 and NOK 21 million in 2023.
Set out below are the carrying amounts of lease liabilities and the
movements during the period:
2021
2020
As at 1 January
1,788
2,544
Additions
132
693
Acquired through business combinations
10
-
Disposals on sale of businesses
97
-
Partial or full termination
(48)
(9)
Lease payments
(488)
(516)
Accretion of interest
67
89
Reclassified as held for sale
-
(1,047)
Foreign exchange differences
(16)
35
As at 31 December
1,543
1,788
-of which current
306
286
-of which non-current
1,237
1,503
The addition in 2021 is mainly related to a new lease for package sorting
facility in Helthjem Netthandel at Vestby, Norway.
The table below summarises the maturity profile of lease liabilities based
on contractual undiscounted payments:
2021
2020
<3 months
73
62
3 months to 1 year
280
281
1 to 2 years
332
354
2 to 5 years
567
715
>5 years
467
606
Total
1,720
2,018
Statement of cash flows
The following amounts related to leases are recognised in the statement of
cash flows:
2021
2020
Net cash flow from operating activities
(118)
(104)
Net cash flow from financing activities
(419)
(419)
Total
(537)
(523)
The principal portion of lease payments are classified as cash flow from
financing activities. The interest portion of lease payments are classified as
cash flow from operating activities together with lease payments related to
short-term and low-value leases.
Future cash outflows in which Schibsted is potentially
exposed to that are not reflected in the lease liability
The group has entered into lease contracts that have not yet commenced
as at 31 December 2021. The future lease payments for the non-cancellable
lease periods are:
2021
Within one year
4
Between one and five years
12
More than five years
-
Total
16
Set out below are the potential future lease payments relating to periods
following the exercise date of extension and termination options that are
not included in the lease term:
Between one
and five years
More than
five years
Total
Extension options expected not
to be exercised
104
1,888
1,992
Termination options expected to
be exercised
46
105
151
Total
149
1,994
2,143
The Group has certain contracts with infinitely recurring renewal periods
that are not included in the table. Yearly payments for these contracts after
end of lease term (2024) are NOK 93 million.
Expenses related to short-term leases are expected to remain insignificant
in 2022.
Non-current
Current
2021
2020
2021
2020
Trade receivables, net (Note 7
and Note 21)
-
-
1,244
1,183
Prepaid expenses
-
-
135
121
Income tax receivables
-
-
61
64
Loans to joint ventures and
associates
18
19
26
34
Financial assets at fair value
through profit or loss (Note 22)
590
-
-
-
Equity instruments at fair value
through OCI (Note 22)
117
72
-
-
Financial derivatives (Note 27)
6
-
35
92
Other receivables
5
9
280
283
Inventories
-
-
26
16
Total
736
101
1,806
1,792
2021
2020
Trade receivables
1,271
1,212
Contract assets
210
173
Less provision for expected credit losses on
trade receivables and contract assets
(27)
(29)
Trade receivables and contract assets
1,454
1,356
Aging of trade receivables by due date
2021
2020
Not due
1,031
979
Past due 0-45 days
194
172
Past due 46-90 days
21
20
Past due more than 90 days
25
41
Trade receivables
1,271
1,212
For information regarding receivables transferred from contract assets, see
Note 7 Revenue recognition.
SCHIBSTED ANNUAL REPORT 2021
NOTES
88
Set out below is the movement in the allowance for expected credit losses
of trade receivables and contract assets:
2021
2020
Balance as at 1 January
29
132
Provision for expected credit losses
33
112
Write off
(42)
(50)
Business Combinations
2
-
Disposals
5
(36)
Reclassified as held for sale
-
(132)
Foreign exchange differences
-
3
Balance as at 31 December
27
29
Amounts presented for items of profit or loss in the reconciliation above include
amounts related to discontinued operations. The amounts may therefore deviate
from similar line items presented in other parts of this report including amounts
related to continuing operations only.
Schibsted assesses the loss rates to be applied when estimating provisions
for expected credit losses on a regular basis. Schibsted has also reassessed
the loss rates to be applied as a result of the COVID-19 pandemic and does
not expect losses on trade receivables and contract assets to increase
significantly. See also Note 27 Financial instruments by category for the
accounting policy for impairment losses on trade receivables and contract
assets.
Principle
The Group classifies its investment in equity instruments as Financial
assets at fair value through profit or loss (FVPL) unless an irrevocable
election is made at initial recognition to classify as Equity instrument
designated at fair value through other comprehensive income (FVOCI).
When classified as FVPL, changes in fair value and dividends received are
recognised in financial income or expenses.
When classified as FVOCI, dividends received are recognised in financial
income. Any changes in fair value recognised in OCI are not reclassified to
profit or loss on derecognition. Equity instruments are included at fair
value in the line item Other non-current assets in the statement of
financial position and are not subject to impairment assessment.
Valuation
method
Interest
held
2021
Interest
held
2020
Tibber AS
FV PL
level 3
14.57%
469
-
-
eEducation Albert AB
FV PL
level 1
15.60%
111
-
-
Other
FV PL
level 3
10
-
Financial assets at fair value through profit or loss
FV PL
590
-
FundingPartner Group AS
FV OCI
level 3
10.01%
25
10.01%
9
Inzpire.me AS
FV OCI
level 3
19.18%
24
-
-
Homely AS
FV OCI
level 3
11.68%
23
11.68%
24
Other
FV OCI
level 3
44
39
Equity instruments at fair value through OCI
FV OCI
117
72
Total
707
72
The Group has historically designated its investments in equity instruments
as Financial assets at fair value through other comprehensive income
(FVOCI) at initial recognition. Future additions will primarily be classified as
Equity instruments at fair value through profit or loss (FVPL) as such
classification will provide more useful information to users of the Group’s
financial statements by including returns from investing activities in profit
or loss. Similarly, additions in 2021 are primarily classified as FVPL.
Investment in Tibber AS in 2021 results partly from shares received as
consideration for the sale of Kundkraft (see Note 4 Changes in the
composition of the Group) and partly for purchase of shares.
Investment in eEducation Albert AB was previously accounted for as an
associate, but was recognised as equity instrument at fair value following
listing of the entity (see Note 5 Investments in joint ventures and
associates).
In 2021, the Group received dividends of NOK 1 million (NOK 2 million) from
equity instruments at fair value through OCI.
SCHIBSTED ANNUAL REPORT 2021
NOTES
89
Principle
When put options are granted by Schibsted to holders of non-
controlling interests, Schibsted determines and allocates profit (loss),
other comprehensive income and dividends paid to such non-
controlling interests. Accumulated non-controlling interests are
derecognised as if the non-controlling interest was acquired at the
balance sheet date and a financial liability reflecting the obligation to
acquire the non-controlling interest is recognised. The liability is
measured at fair value calculated as the present value of the redemption
amount. The net amount recognised or derecognised is accounted for
as an equity transaction. In the Consolidated statement of changes in
equity, such amounts are included in the line item initial recognition and
change in fair value of non-controlling interests’ put options.
The accounting policy for contingent consideration is disclosed in
Note 4 Changes in the composition of the Group.
Significant judgement and estimation uncertainty
The liabilities are measured at fair value which is based on the best
estimate of future considerations. The estimates take into account the
principles for determination of the consideration in the existing
agreements. The estimates take further into account, when relevant,
management's expectations regarding future economic development
used in determining recoverable amount in impairment tests. The
estimate can be changed in future periods as the consideration to be
paid is dependent upon future fair value as well as future results.
Non-controlling interests' put options
Contingent considerations
Development in net carrying amount
2021
2020
2021
2020
As at 1 January
-
61
177
173
Additions
53
-
5
35
Settlement
(4)
(38)
(16)
-
Change in fair value recognised in Profit (loss)
-
-
(8)
(36)
Interest expenses
-
1
3
3
Disposals on sale of businesses
3
-
16
-
Reclassified as held for sale
-
(25)
-
(16)
Foreign exchange differences
(2)
1
(9)
17
As at 31 December
51
-
168
177
-of which non-current (Note 24)
51
-
129
177
-of which current (Note 24)
-
-
38
-
The maturity profile of the financial liabilities
Maturity within 1 year
-
-
38
-
Maturity between 1 and 2 years
-
-
-
30
Maturity between 2 and 5 years
51
-
129
147
Amounts presented for items of profit or loss in the table above include amounts related to discontinued operations. The amounts may therefore deviate from similar line items
presented in other parts of this report including amounts related to continuing operations only.
The requirement to settle the liability recognised for non-controlling interests’ put options is contingent on the non-controlling interest actually exercising
their options. For agreements where an option can be exercised over a period, the actual settlement may occur in later periods than presented in the maturity
profile. The most significant liability related to contingent considerations in 2021 is related to shareholdings in Qasa AB.
Principle
Provisions are recognised when the Group has a present legal or
constructive obligation as a result of past events, it is probable an outflow
of resources will be required to settle the obligation and the amount can
be reliably estimated. Provisions are not recognised for future operating
losses. The provision is calculated on the basis of the best estimate of
anticipated expenses. If the effect is material, anticipated future cash
flows will be discounted, using a current pre-tax interest rate that reflects
the risks specific to the provision.
Contingent liabilities are liabilities not recognised as it is not yet
confirmed that the Group has a present obligation, or a present obligation
for which it is not probable that an outflow of resources will be required
to settle the obligation, or it is not possible to make a sufficiently reliable
estimate of the obligation.
Contingent liabilities are disclosed unless the probability that an
economic settlement will be required to settle the obligation is remote
SCHIBSTED ANNUAL REPORT 2021
NOTES
90
Significant judgement and estimation uncertainty
The Group may from time to time be subject to various legal
proceedings, disputes and claims including regulatory discussions
related to the Group’s business, investments etc., of which the
outcomes are subject to significant uncertainty. Management applies
significant judgement when evaluating the degree of probability of an
unfavorable outcome and the ability to make a reasonable estimate of
the amount of loss. Unanticipated events or changes in these factors
may require the Group to accrue for a matter that has not been
previously accrued for because it was not considered probable or a
reasonable estimate could not be made, or increase or decrease an
amount accrued for a matter in previous reporting periods.
Non-current
Current
2021
2020
2021
2020
Financial liabilities related
to non-controlling interests' put
options (Note 22)
51
-
-
-
Contingent considerations
business combinations (Note 22)
129
177
38
-
Liabilities to joint ventures and
associates
15
16
20
5
Trade payables
-
-
398
360
Public duties payable
-
-
658
607
Accrued salaries and other
employment benefits
3
2
710
652
Accrued expenses
-
-
522
460
Provision for restructuring costs
57
81
54
81
Financial derivatives (Note 27)
-
-
8
212
Other liabilities
86
41
125
160
Total
340
317
2,534
2,537
Capital management and funding
Schibsted aims to provide a competitive rate of return based on healthy
finances. Schibsted targets to maximise the shareholders’ return through
long-term growth in the share price and dividend. The Group’s dividend
policy is to place emphasis on paying a stable to increasing dividend
amount over time. In years when there is an economic slowdown, or for
other reasons weaker cash flows of the company, the company may reduce
or decide not to pay dividend.
The Group's strategy and vision imply a high rate of change and
development of the Group’s operations. Schibsted’s capital structure must
be sufficiently robust in order to maintain the desired freedom of action and
utilise growth opportunities based on strict assessments relating to
allocation of capital.
Funding and control of refinancing risk is handled by Group treasury on the
parent company level. Schibsted has a diversified loan portfolio both in
terms of loan sources and maturity profile, see Note 26 Interest-bearing
loans and borrowings. The most important funding sources are banks and
the Norwegian bond market. Schibsted's objective is to be an investment
grade rated company over time and obtained a BBB Stable rating from
Scope Ratings in August 2021. The financial flexibility is good, and the
refinancing risk is considered as low.
Schibsted has not entered into sustainability linked loans, but are
considering whether to include sustainability linked KPI's to new loans
going forward. Schibsted want to make sure that the KPIs are reflecting
our business and anchor the KPIs thoroughly in the organizations before
such KIPs are launched. Schibsted has in total very low CO2 emissions and
ESG is very high on Schibsted's agenda. Schibsted was recognised as a ‘Top-
Rated’ ESG performer by Sustainalytics in both our industry and region in
January 2022. For further information on our sustainability work, please see
the Sustainability Report.
Schibsted’s loan agreements contain financial covenants regarding the
ratio of net interest-bearing debt (NIBD) to gross operating profit (EBITDA).
The ratio shall normally not exceed 3, but can be reported at higher levels
up to three quarters during the loan period, as long as the ratio stays below
4. According to the definition of the loan agreements, the ratios were 2.39
as at 31 December 2021 and 1.36 as at 31 December 2020 excluding the
effects of IFRS 16. The target level is 1-3, but being in the higher end there
should always be a plan on how to reduce the gearing.
Schibsted has been granted a temporary waiver of the existing covenant in
relation to the the acaquistion of eBay Denmark. The waiver remain until
the Bridge Loan is fully repaid. In this period the existing covenant is
replaced by an interest coverage ratio which shall be above 3:1. As at 31
December 2021 the ratio was 22:1.
Available liquidity should at all times be equal to at least 10 percent of
expected annual revenues. Available liquidity refers to the Group's cash and
cash equivalents and available long-term bank facilities.
The Group's capital consists of net interest-bearing debt and equity:
2021
2020
Non-current interest-bearing loans and
borrowings
3,592
3,090
Current interest-bearing loans and
borrowings
3,274
678
Cash and cash equivalents
1,108
1,306
Net interest-bearing debt
5,758
2,462
Group equity
50,533
15,853
Net gearing (net interest-bearing debt/equity)
0.11
0.15
Undrawn long-term bank facilities (Note 26)
2,997
6,806
Financial risks
Schibsted is exposed to financial risks, such as currency risk, interest rate
risk, credit risk and liquidity risk. Group Treasury is responsible for keeping
the Group's exposure in financial risks in accordance with the financial
strategy over time.
Currency risk
Schibsted has Norwegian kroner (NOK) as its base currency, but is through
its operations outside Norway also exposed to fluctuations in the exchange
rates of other currencies, mainly Swedish kronor (SEK), Danske kroner
(DKK) and Euro (EUR). Schibsted has currency risks linked to both balance
sheet monetary items and net investments in foreign operations. The
Group makes use of loans in foreign currencies and financial derivatives
(forward contracts and cross currency swaps) to reduce this currency
exposure. The loans in foreign currencies and the financial derivatives are
managed actively in accordance with the Group’s financial strategy. As at
31 December 2021 the Group had entered into several forward contracts
and several interest rate and cross currency swap agreements. Schibsted
follows a currency hedging strategy where parts of net investments in
foreign operations are hedged.
Currency gains and losses relating to borrowings and forward contracts
which effectively hedge net investments in foreign operations are
recognised in Other comprehensive income until the foreign operation is
disposed of. Other currency gains and losses are recognised in the income
statement on an ongoing basis as financial income or expenses.
SCHIBSTED ANNUAL REPORT 2021
NOTES
91
As at 31 December 2021 and 31 December 2020 Schibsted has the following forward contracts, which all mature within 12 months:
2021
2020
Currency
Amount
NOK
Amount
NOK
Forward contracts, sale
SEK
830
809
1,116
1,165
Forward contracts, sale
EUR
4
38
85
890
Forward contracts, sale
DKK
480
645
481
677
Forward contracts, buy
SEK
335
326
730
762
Forward contracts, buy
EUR
-
-
279
2,921
Of which are accounted for as cash flow hedges
or hedges of net investments in foreign
operations:
2021
2020
Currency
Amount
NOK
Amount
NOK
Forward contracts net investment Sweden, sale
SEK
-
-
1.116
1.165
Forward contracts net investment Finland, sale
EUR
4
38
-
-
Forward contracts net investment Adevinta, sale
EUR
-
-
85
890
Forward contracts new investment Denmark, buy
EUR
-
-
279
2.921
Forward contracts for the sale EUR 4 million are at 31 December 2021
designated as a hedge of the foreign exchange risk of net investments in
foreign operations. The corresponding amounts at 31 December 2020 were
the sale of SEK 1,116 million, DKK 481 million and EUR 85 million. Gains or
losses on such hedging instruments are recognised in other comprehensive
income as an offset to gains or losses on translation of the foreign
operations. There is an economic relationship between the hedged items
and the hedging instruments as the net investments creates a translation
risk matching the foreign exchange risk of the hedging instruments. The
underlying risk of the hedging instrument is identical to the hedged risk
component. Any hedge ineffectiveness will arise if the carrying amount of
the net investments is lower than the amount of the hedging instruments.
Cash flows in foreign currencies relating to considerable investments or
significant individual transactions are hedged by using financial
instruments. At year-end 2021 the Group had no such forward contracts.
The corresponding amount at 31 December 2020 was the purchase of
EUR 279 million that was related to hedging of the acquisition of eBay
Denmark.
Fair value of all the contracts accounted for as hedges was NOK 1 million as
at 31 December 2021 and NOK (72) million as at 31 December 2020. Fair
value of other forward contracts was NOK 19 million as at 31 December
2021 and NOK 9 million as at 31 December 2020.
The Group’s foreign exchange exposure relating to operations is relatively
low, since most of the cash flows take place in the individual businesses'
local currency.
As at 31 December 2021 Schibsted has the following cross currency swaps, which mature in 2023 and 2024:
Currency
Currency
payment
NOK to
receive
Cross currency swap
DKK
221
Cibor 3 months + margin
300
Nibor 3 months + margin
Cross currency swap
DKK
370
Cibor 3 months + margin
500
Nibor 3 months + margin
The cross currency swap agreements are linked to floating rate notes and
matches the payments partly or completely during the contract period. The
fair value of the agreements was NOK 9 million as at 31 December 2021 and
NOK (68) million as at 31 December 2020.
In addition to the above contracts, a loan from the Nordic Investment Bank
of EUR 27 million was accounted for as hedge of net investment in foreign
operations (Finland).
As at 31 December 2021, 4 percent of the Group's interest-bearing debt and
derivatives was in EUR, 7 percent was in SEK and 21 percent was in DKK. As
at 31 December 2020, 44 percent of the Group's interest-bearing debt and
derivatives was in EUR, 11 percent was in SEK and 18 percent was in DKK.
The sensitivity of exchange rate fluctuations is as follows: if NOK changes
by 10 percent compared to the actual rate as at 31 December 2021 for SEK,
EUR and DKK, the carrying amount of the Group's net interest-bearing debt
and currency derivatives in total will change by approximately
NOK 188 million. Such currency effects will have a limited effect on Group
profits since changes in value will be tied to instruments hedging the net
foreign investments or matching interest-bearing loans to non-Norwegian
subsidiaries.
A change in exchange rates also affects the translation of net foreign assets
to NOK. The effect of a 10 percent change in currency rates will affect equity
by appoximately NOK 5.4 billion, mainly related to the investment in
Adevinta, and will be recognised in other comprehensive income. The
equity effect of these changes is to some extent reduced by the Group's
currency hedging, where changes in the value of net foreign assets are
mitigated by changes in the value of the Group's foreign-denominated
interest- bearing borrowings and currency derivatives.
Interest rate risk
Schibsted has floating interest rates on most of its interest-bearing loans
and borrowings according to the financial strategy, see Note 26 Interest-
bearing loans and borrowings, and is thereby influenced by changes in the
interest market. An increase of 1 percentage point in Schibsted's floating
interest rate means a change in net interest expenses of approximately
NOK 55 million.
Interest rate swap agreements have been entered into to swap the bonds
issued in 2012 from fixed interest rates to floating interest rates based on
Nibor 6 months with addition of a margin. An interest rate swap has also
been entered into converting the floating rate note issued in December
2012 from Nibor 3 months with addition of a margin to Nibor 6 months with
addition of a margin.
SCHIBSTED ANNUAL REPORT 2021
NOTES
92
As at 31 December 2021 Schibsted has the following interest rate swap agreements in NOK million, both with maturity in 2022:
Amount
Pay
Receive
Interest rate swap
250
Nibor 6 months + margin
5.4%
Interest rate swap
150
Nibor 6 months + margin
Nibor 3 months + margin
The fair value of the interest rate swap agreements was NOK 4 million as at
31 December 2021 and NOK 12 million as at 31 December 2020. The interest
rate swaps involving fixed rates are accounted for as hedges with a
corresponding loss related to the hedged item.
Credit risk
Trade receivables are diversified through a high number of customers,
customer categories and markets. Trade receivables consist of a
combination of prepaid subscription or advertisements and sales invoiced
after delivery of the product. For some receivables there is no or very little
credit risk (prepaid subscription and payments made by credit card at
purchase date) and for other receivables the credit risk is higher. Credit risk
will also vary among countries in which Schibsted operates. To some extent
credit insurance is also used. In total the credit risk is considered as low. Net
carrying amount of the Group's financial assets, except for equity
instruments, represents maximum credit exposure, and the exposure as at
31 December 2021 is disclosed in Note 27 Financial instruments by
category. Exposure related to the Group's trade receivables is disclosed in
Note 21 Trade receivables and contract assets.
Schibsted has a conservative placement policy. Excess liquidity is
temporarily placed in the Group's cash pool, in the short-term money
market as well as with other core relationship banks. Schibsted requires all
relationship banks to have a certain rating.
Liquidity risk
At year-end the Group's portfolio of loans and loan facilities is well
diversified both regarding maturity profile and lenders.
As at 31 December 2021 Schibsted has a long-term liquidity reserve of
NOK 4,104 million and net interest-bearing debt is NOK 5,758 million. The
liquidity reserve corresponds to 28 percent of the Group’s turnover. At the
end of 2020 Schibsted's long-term liquidity reserve was NOK 8,112 million,
and net interest-bearing debt was NOK 2,462 million, where the liquidity
reserve corresponded to 63 percent of the Group's turnover.
IBOR reform
Schibsted is following the progress of the IBOR reform - the global reform
of interest rate bechmarks, which eventually will replace some interbank
offered rates (IBOR) with alternative benchmark rates. Schibsted is exposed
to the following base rates that potentially will affect the hedge accounting
when the IBOR reform is implemented: EURIBOR, STIBOR, CIBOR and
NIBOR. None of these IBOR rates are scheduled to be replaced.
Carrying amount
Fair value
(1)
Non-current interest-bearing liabilities
2021
2020
2021
2020
Currency
Coupon
Bonds
ISIN NO0010667843 (2012-2022)
250
250
259
270
NOK
5.4%
ISIN NO0010667850 (2012-2022)
150
150
153
155
NOK
FRN: Nibor 3 months + 250 bps
ISIN NO0010710569 (2014-2021)
-
600
-
601
NOK
FRN: Nibor 3 months + 110 bps
ISIN NO0010786866 (2017-2024)
500
500
508
504
NOK
FRN: Nibor 3 months + 120 bps
ISIN NO0010797533 (2017- 2020)
-
-
-
-
NOK
FRN: Nibor 3 months + 100 bps
ISIN NO0010797541 (2017-2023)
600
600
609
609
NOK
FRN: Nibor 3 months + 145 bps
ISIN NO0010797558 (2017-2023)
300
300
304
311
NOK
2.825%
ISIN NO0010878960 (2020-2023)
1,000
1,000
1,035
1,041
NOK
FRN: Nibor 3 months + 240 bps
ISIN NO0011157323 (2021-2026)
1,000
-
997
-
NOK
FRN: Nibor 3 months + 78 bps
Total bonds
3,800
3,400
3,865
3,490
- of this current interest-bearing liabilities
400
600
412
601
Bank loans
182
280
182
280
Other loans
10
10
10
10
Total non-current interest-bearing
liabilities
3,592
3,090
3,645
3,179
Current interest-bearing liabilities
Bonds, maturity <1 year
400
600
412
601
Bank loans, overdrafts
2,872
77
2,872
77
Other loans
2
1
2
1
Total current interest-bearing liabilities
3,274
678
3,286
679
Total interest-bearing liabilities
6,866
3,768
6,931
3,858
(1) The fair value of exchange-traded bonds is quoted prices, whereas book values are assumed to represent fair value for other loans.
Schibsted has issued two bonds with fixed interest rates, the bond expiring in 2022 is hedged with an interest rate swap agreement implying floating interest rates in practice for
this bond. The nominal interest rate is not an expression of the Group’s actual interest cost, as various cross currency swaps have been entered into.
SCHIBSTED ANNUAL REPORT 2021
NOTES
93
Contractual amount in NOK million of interest-bearing loans and
borrowings breaks down as follows by currency:
Interest-bearing
liabilities
2021
2020
NOK
6,612
3,410
EUR
269
362
Other
-
1
Total contractual amount
6,881
3,773
Credit facilities
Schibsted has a long-term multi-currency revolving credit facility of
EUR 300 million. The facility was not drawn at the end of 2021. In addition,
Schibsted has a Bridge Loan of NOK 2 800 million related to the acquisition
of eBay Denmark. For both these loan agreements, the lenders consist of
Nordic and international banks. The agreements have interest terms based
on the relevant IBOR rate with the addition of a margin. For the loan facility
of EUR 300 million there is also a commitment fee to maintain the facility’s
availability.
Maturity profile interest-bearing liabilities and unutilised credit
facilities (contractual amounts):
Interest-bearing
liabilities
Unutilised
credit facilities
2021
2020
2021
2020
Maturity 3 months-1 year
3,279
681
-
-
Maturity 1-2 years
1,977
481
-
6,806
Maturity 2-5 years
1,625
2,611
2,997
-
Total contractual amount
6,881
3,773
2,997
6,806
The Group also holds cash pools and bank accounts with short-term credit
lines. Unutilised credit lines on these accounts are not included in the table.
Guarantees and pledges
The Group has provided guarantees of NOK 24 million and has pledged
NOK 25 milion of cash and cash equivalents as collateral for pension
liability. The Group has no mortgage debt.
Principle
The Group initially recognises loans, receivables and deposits on the date
that they are originated. All other financial assets and financial liabilities
(including financial assets designated at fair value through profit or loss
or other comprehensive income) are recognised initially on the trade date
at which the Group becomes a party to the contractual provisions of the
instrument. All financial instruments are initially measured at fair value
plus or minus, in the case of a financial asset or financial liability not at fair
value through profit or loss, transaction costs.
The Group classifies at initial recognition its financial instruments in one
of the following categories: Financial assets or financial liabilities at fair
value through profit or loss, Financial assets at amortised cost, Equity
instruments designated at fair value through OCI and Financial liabilities
at amortised cost. The classification depends on both the entity’s
business model for managing the financial asset and the contractual cash
flow characteristics of the financial asset.
Financial assets or financial liabilities at fair value through profit or loss
are financial assets and liabilities held for trading and acquired or
incurred primarily with a view of sale or repurchase in the near term.
Financial derivatives are included in the balance sheet items Trade
receivables and other current assets, Other non-current assets, Other
current liabilities and Other non-current liabilities. These financial assets
and liabilities are measured at fair value when recognised initially, and
transaction costs are charged to expense as incurred. Subsequently, the
instruments are measured at fair value, with changes in fair value,
including interest income, recognised in profit or loss as financial income
or financial expenses, unless they are designated and effective hedging
instruments.
Financial assets at amortised cost are assets giving rise to cash flows that
are solely payments of principal and interest on the principal amount
outstanding. The category is included in the balance sheet items Other
non-current assets, Trade receivables and other current assets and Cash
and cash equivalents. Financial assets at amortised cost are recognised
initially at fair value plus directly attributable transaction costs.
Subsequently, the assets are measured at amortised cost using the
effective interest method, reduced by any impairment loss. Effective
interest related to financial assets at amortised cost is recognised in profit
or loss as Financial income.
The carrying amounts of trade and other current payables are assumed to
be approximately the same as their fair values, due to their short-term
nature. Short-term loans and receivables are for practical reasons not
amortised.
For principles related to equity instruments see Note 22 Equity
instruments.
Financial liabilities not included in any of the above categories are
classified as financial liabilities at amortised cost. The category other
financial liabilities is included in the balance sheet items Non-current
interest-bearing loans and borrowings, Non-current lease liabilities,
Other non-current liabilities, Current interest-bearing loans and
borrowings, Current lease liabilities and Other current liabilities. After
initial measurement, financial liabilities at amortised cost are measured
at amortised cost using the effective interest method. Effective interest is
recognised in income as financial expenses. Short-term financial
liabilities are for practical reasons not amortised.
Financial assets are derecognised when the contractual rights to the cash
flows from the financial asset expire and the Group has transferred
substantially all the risks and rewards of ownership. Financial liabilities
are derecognised when the obligation is discharged, cancelled or expires.
Any rights and obligations created or retained in such a transfer are
recognised separately as assets or liabilities.
Financial assets and liabilities are offset and the net amount is presented
in the Statement of financial position when the Group has a legal right to
offset the amounts and intends to settle on a net basis or to realise the
asset and settle the liability simultaneously.
Schibsted has assessed at each balance sheet date the general pattern of
deterioration or improvement in the credit quality of financial
instruments. The amount of Expected Credit Loss (ECL) recognised as a
loss allowance or provision depends on the extent of credit deterioration
since initial recognition. The simplified approach using life-time ECL
forms the basis for the assessment.
SCHIBSTED ANNUAL REPORT 2021
NOTES
94
For Trade receivables and other current assets Schibsted has applied the
practical expedient to the carrying amount through the use of an
allowance account reflecting the lifetime expected credit losses. The loss
is recognised as other operating expenses in the income statement.
Impairment of all other financial assets are recognised as Financial
expenses.
Fair value of financial instruments is based on quoted prices at the
balance sheet date in an active market if such markets exist. If an active
market does not exist, fair value is established by using valuation
techniques that are expected to provide a reliable estimate of the fair
value. The fair value of listed securities is based on current bid prices. The
fair value of unlisted securities is based on cash flows discounted using an
applicable risk-free market interest rate and a risk premium specific to the
unlisted securities. Fair value of forward contracts is estimated based on
the difference between the spot forward price of the contracts and the
closing rate at the date of the balance sheet. The forward rate addition
and deduction is recognised as interest income or interest expense. Fair
value of interest and currency swaps is estimated based on discounted
cash flows, where future interest rates are derived from market-based
future rates.
Financial assets and liabilities measured at fair value are classified
according to valuation method:
Level 1: Valuation based on quoted prices (unadjusted) in active markets
for identical assets or liabilities. Only investments in listed equity
instruments are included in Level 1.
Level 2: Valuation based on inputs other than quoted prices included
within level 1 that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from prices). Financial
derivatives is included in Level 2.
Level 3: Valuation based on inputs for the asset or liability that are
unobservable market data. Level 3 investments include non-listed equity
instruments, contingent liabilities and non-controlling interests'
put-options.
If one or more of the significant inputs are not based on observable
market data, the instrument is included in level 3.
Changes in fair value recognised in other comprehensive income is
recognised in the line item Change in fair value of equity instruments
Changes in fair value recognised in profit or loss are presented in the line
items Financial expenses, Financial income and Other income and
expenses.
Hedges
On initial designation of a hedge, the Group formally documents the
relationship between the hedging instrument(s) and the hedged item(s),
including risk management objectives and strategy in undertaking the
hedge transaction, together with the methods that will be used to assess
the effectiveness of the hedging relationship. The Group makes an
assessment both at the inception of the hedge relationship as well as on
an ongoing basis, whether the hedging instruments are expected to be
highly effective in offsetting the changes in the fair value or cash flows for
the respective hedged items during the period for which the hedge is
designated.
Gains or losses related to loans or currency derivatives in foreign
currencies, designated as hedging instruments in a hedge of a net
investment in a foreign operation, are recognised in other comprehensive
income until disposal of the operation.
Significant judgement and estimation uncertainty
Certain financial instruments are measured at fair value. When no quoted
market price is available, fair value is estimated using different valuation
techniques such as discounted cash flow models or valuations based on
prices derived from transactions with external parties.
Carrying amount of financial assets and liabilities divided into categories:
31 December 2021
Note
Financial assets and
liabilities
at fair value through
profit (loss)
1)
Financial
assets
at amortised
cost
Equity
instruments
at fair value
through OCI
Financial
liabilities
at amortised
cost
Total
Other non-current assets
20
596
23
117
-
736
Trade receivables and other current assets
20, 21
35
1,550
-
-
1,585
Cash and cash equivalents
2)
-
1,108
-
-
1,108
Total assets
631
2,681
117
-
3,429
Non-current interest-bearing borrowings
26
-
-
-
3,592
3,592
Other non-current liabilities
24
129
-
-
161
290
Current interest-bearing borrowings
26
-
-
-
3,274
3,274
Lease liabilities
19
-
-
-
1,543
1,543
Other current liabilities
24
46
-
-
1,825
1,871
Total liabilities
175
-
-
10,395
10,570
1) Including financial derivatives qualified for hedge accounting.
2) As at 31 December 2021 Cash and cash equivalents solely consists of bank deposits, including restricted cash of NOK 62 million.
SCHIBSTED ANNUAL REPORT 2021
NOTES
95
31 December 2020
Note
Financial assets and
liabilities
at fair value through
profit (loss)
1)
Financial
assets
at amortised
cost
Equity
instruments
at fair value
through OCI
Financial
liabilities
at amortised
cost
Total
Other non-current assets
20
-
28
72
-
101
Trade receivables and other current assets
20, 21
92
1,499
-
-
1,591
Cash and cash equivalents
2)
-
1,306
-
-
1,306
Total assets
92
2,833
72
-
2,998
Non-current interest-bearing borrowings
26
-
-
-
3,090
3,090
Other non-current liabilities
24
177
-
-
140
317
Current interest-bearing borrowings
26
-
-
-
678
678
Lease liabilities
19
-
1,788
1,788
Other current liabilities
24
212
-
-
1,704
1,916
Total liabilities
389
-
-
7,401
7,790
1) Including financial derivatives qualified for hedge accounting.
2) As at 31 December 2020 Cash and cash equivalents solely consists of bank deposits, including restricted cash of NOK 28 million related to client deposits.
The fair value of the Group’s financial derivatives:
Assets
Liabilities
2021
2020
2021
2020
Forward contracts
28
80
8
143
Interest rate and cross currency swaps
13
13
-
69
Total
41
92
8
212
The Group's financial assets and liabilities measured at fair value, analysed by valuation method:
31 December 2021
Level 1
Level 2
Level 3
Total
Equity instruments at fair value through OCI
-
117
117
Financial assets at fair value through profit or loss
111
41
479
631
Financial liabilities at fair value through profit or loss
-
8
167
175
Non-controlling interests'put options recognised in equity (Note 23)
-
51
51
31 December 2020
Level 1
Level 2
Level 3
Total
Equity instruments at fair value through OCI
-
-
72
72
Financial assets at fair value through profit or loss
-
92
-
92
Financial liabilities at fair value through profit or loss
-
389
177
566
Changes in level 3 instruments:
2021
2020
As at 1 January
(104)
(78)
Additions
474
66
Disposals
(35)
(13)
Settlements
20
35
Changes in fair value recognised in other comprehensive income
6
(27)
Changes in fair value recognised in profit or loss
18
32
Reclassified as held for sale
-
(118)
As at 31 December
378
(104)
SCHIBSTED ANNUAL REPORT 2021
NOTES
96
Principle
Own equity instruments which are reacquired (treasury shares) are
deducted from equity. No gain or loss is recognised in profit or loss on the
purchase, sale, issue or cancellation of treasury shares. Consideration
paid or received is recognised directly in equity.
The transaction costs of issuing or acquiring own equity instruments are
accounted for as a deduction from equity, net of any related income tax
benefit.
The development in share capital and other paid-in equity is set out in the Consolidated statement of changes in equity.
The development in the number of issued and outstanding shares:
Number of A-shares
Number of B-shares
Total number of shares
Shares
outstanding
Treasury
shares
Issued
Shares
outstanding
Treasury
shares
Issued
Shares
outstanding
Treasury
shares
Issued
As at 31 December 2019
104,790,348
3,213,267
108,003,615
129,382,197
1,302,176
130,684,373
234,172,545
4,515,443
238,687,988
Increase in treasury shares
(330,390)
330,390
-
(135,000)
135,000
-
(465,390)
465,390
-
Decrease in treasury shares
-
-
-
142,261
(142,261)
-
142,261
(142,261)
-
As at 31 December 2020
104,459,958
3,543,657
108,003,615
129,389,458
1,294,915
130,684,373
233,849,416
4,838,572
238,687,988
Redemption of treasury shares
-
(3,543,657)
(3,543,657)
-
(883,307)
(883,307)
-
(4,426,964)
(4,426,964)
Decrease in treasury shares
-
-
-
187,443
(187,443)
-
187,443
(187,443)
-
As at 31 December 2021
104,459,958
-
104,459,958
129,576,901
224,165
129,801,066
234,036,859
224,165
234,261,024
In 2021, the share capital of Schibsted ASA was reduced by NOK 2,213,482
through the redemption of 4,426,964 treasury shares (3,543,657 A-shares
and 883,307 B-shares). After the redemption, the share capital is
NOK 117,130,512 split on 104,459,958 A-shares and 129,801,066 B-shares
each with a nominal value of NOK 0.50. The B-shares are carrying equal
rights as A-shares in all respects except that the A-shares have 10 votes per
share while the B-shares have one vote per share.
No shareholder may own more than 30 percent of the shares or vote for
more than 30 percent of the total number of votes which may be cast under
the Company's Articles of Association.
The Annual Shareholder's Meeting has given the Board authorisation to
acquire company's shares up to a total nominal value of NOK 11,713,051 as
treasury shares. The authorisation was renewed at the Annual
Shareholder's Meeting on 6 May 2021 for a period until the Annual
Shareholder's Meeting in 2022. At the Annual Shareholder's Meeting on
3 May 2022 the Board is expected to propose a resolution to extend the
authorisation for the Board to acquire and dispose of up to 10 percent of
the share capital in Schibsted ASA according to the Norwegian Public
Limited Liability Companies Act under the conditions evident from the
notice of the Annual Shareholder's Meeting.
Schibsted has in 2021 transferred a total of 60,293 treasury B-shares to key
managers in connection with share-based payment plans. Fair value of
treasury shares transferred was NOK 19 million.
In 2021, 127,150 treasury B-shares were sold in connection with an
employee share saving plan. Total consideration was NOK 35 million.
Hedging reserves
Hedging reserves as presented in the statement of changes in equity can be
split as follows:
2021
2020
Cash flow hedges
-
(1,010)
Hedges of net investment in foreign operations
-
(323)
Total hedging reserves
-
(1,333)
2021
2020
Group
Location
Non-
controlling
interest (%)
Profit (loss)
attributable
to NCI
Accumulated
NCI
Dividends
paid to NCI
Non-
controlling
interest (%)
Profit (loss)
attributable
to NCI
Accumulated
NCI
Dividends
paid to NCI
Adevinta group
Oslo, Norway
-
(362)
-
74
40.72%
(85)
5,552
-
Finn.no group
Oslo, Norway
9.99%
79
62
56
9.99%
62
39
60
Aftonbladet Hierta group
Stockholm, Sweden
9.00%
7
36
-
9.00%
(2)
31
-
Plick AB
Stockholm, Sweden
49.00%
-
53
-
-
-
-
-
Other
2
50
10
3
53
1
Total
(274)
201
140
(22)
5,675
61
Adevinta group was classified as held for sale with effect from 20 July 2020
and until control was lost 25 June 2021. See Note 4 Changes in the
composition of the Group.
When put options are granted by Schibsted to holders of non-controlling
interests, the related accumulated non-controlling interest is
derecognised.
SCHIBSTED ANNUAL REPORT 2021
NOTES
97
Summarised financial information for subsidiaries with material non-controlling interests:
Finn.no group
2021
2020
Cash and cash equivalents
891
646
Other current assets
275
235
Non-current assets excluding goodwill
412
407
Goodwill
488
488
Total assets
2,065
1,776
Current liabilities
1,331
1,007
Non-current liabilities
261
318
Total liabilities
1,592
1,325
Operating revenues
2,383
1,867
Gross operating profit (loss)
1,306
916
Profit (loss)
759
514
Comprehensive income
758
512
Net cash flow from operating activities
1,028
698
Net cash flow from investing activities
(103)
(78)
Net cash flow from financing activities
(681)
(701)
Net increase (decrease) in cash and cash equivalents
244
(81)
Aggregate cash flows arising from obtaining control of subsidiaries
and businesses:
2021
2020
Cash in acquired companies
250
86
Acquisition cost other current assets
80
18
Acquisition cost non-current assets
3,721
2,203
Aggregate acquisition cost assets
4,051
2,308
Non-controlling interests and liabilities
assumed
(451)
(257)
Contingent consideration deferred
-
(5)
Consideration deferred paid
19
-
Deferred consideration paid
-
67
Consideration deferred
-
(1)
Fair value of previously held equity interest
(123)
-
Cash flow hedge included in initial cost
(179)
-
Replacement awards share-based payment
(20)
-
Gross purchase price
3,298
2,112
Cash in acquired companies
(250)
(86)
Acquisition of subsidiaries, net of cash
acquired
3,048
2,025
Aggregate cash flows arising from losing control of subsidiaries and
businesses:
2021
2020
Cash in sold companies
1,281
83
Carrying amount other current assets
33,369
68
Carrying amount non-current assets
86
456
Aggregate carrying amount assets
34,735
607
Equity and liabilities transferred
(26,512)
(237)
Gain (loss)
59,921
138
Gross sales price
68,144
509
Cash in sold companies
(1,281)
(83)
Non-cash consideration and non-cash items
in gain (loss)
(68,107)
-
Proceeds from sale of subsidiaries, net of
cash sold
(1,244)
426
Change in ownership interests in subsidiaries consists of:
2021
2020
Increase in ownership interest - from
settlement of put options
(1)
(38)
Increase in ownership interest - from other
transactions
(227)
(53)
Change in ownership interests in
subsidiaries
(228)
(91)
Net sale of (investment in) other shares consists of:
2021
2020
Investments
(626)
(298)
Sales
101
43
Net sale of (investment in) other shares
(525)
(254)
SCHIBSTED ANNUAL REPORT 2021
NOTES
98
Changes in liabilities arising from financing activities:
Interest-bearing loans
and borrowings
Put obligations
Lease liabilities
As at 1 January 2021
3,768
-
1,788
Cash flow from financing activities
- New interest-bearing loans and borrowings
4,300
-
-
- Repayment of interest-bearing loans and borrowings
(1,179)
-
-
- Payment of principal portion of lease liabilities
-
-
(419)
- Change in ownership interests in subsidiaries
-
(1)
-
Non-cash additions
-
53
95
Business combinations and loss of control
2
-
96
Foreign exchange differences
(15)
(1)
(18)
Other
(10)
-
-
As at 31 December 2021
6,866
51
1,543
Interest-bearing loans
and borrowings
Put obligations
Lease liabilities
As at 1 January 2020
5,817
61
2,544
Cash flow from financing activities
- New interest-bearing loans and borrowings
6,463
-
-
- Repayment of interest-bearing loans and borrowings
(3,187)
-
-
- Payment of principal portion of lease liabilities
-
-
(419)
- Change in ownership interests in subsidiaries
-
(38)
-
Non-cash additions
11,439
-
693
Reclassified as held for sale
(16,344)
(25)
(1,047)
Foreign exchange differences
(451)
1
35
Other
30
1
(17)
As at 31 December 2020
3,768
-
1,789
SCHIBSTED ANNUAL REPORT 2021
NOTES
99
The consolidated statement of cash flows includes the following cash flow related to continuing operations:
2021
2020
Profit (loss) before taxes from continuing operations
(18,618)
941
Depreciation, amortisation and impairment losses
21,103
890
Net interest expense
194
147
Net effect pension liabilities
(95)
(44)
Share of loss (profit) of joint ventures and associates
193
44
Dividends received from joint ventures and associates
3
-
Interest received
8
29
Interest paid
(176)
(153)
Taxes paid
(185)
(371)
Sales losses (gains) non-current assets and other non-cash losses (gains)
(271)
(124)
Non-cash items and change in working capital and provisions
2
(68)
Net cash flow from operating activities from continuing operations
2,157
1,292
Development and purchase of intangible assets and property, plant and equipment
(723)
(602)
Acquisition of subsidiaries, net of cash acquired
(3,029)
(1,951)
Proceeds from sale of intangible assets, investment property and property, plant and equipment
11
116
Proceeds from sale of subsidiaries, net of cash sold
(1)
94
Net sale of (investment in) other shares
(513)
(173)
Net change in other investments
(170)
(138)
Net cash flow from investing activities from continuing operations
(4,425)
(2,654)
Net change in interest-bearing loans and borrowings
3,121
(2)
Payment of principal portion of lease liabilities
(329)
(285)
Change in ownership interests in subsidiaries
(1)
(69)
Capital increase
-
8
Net financing from (to) Adevinta
-
-
Net sale (purchase) of treasury shares
35
(90)
Dividends paid
(524)
(61)
Net cash flow from financing activities from continuing operations
2,301
(498)
SCHIBSTED ANNUAL REPORT 2021
NOTES
100
Schibsted ASA has direct and indirect control of around 190 entities in
various parts of the world. Directly-owned subsidiaries are presented in
Note 7 Subsidiaries and associates in Schibsted ASA's financial statements.
Schibsted has ownership interests in joint ventures and associates, see
Note 5 Investments in joint ventures and associates. Following the
completion of Adevinta's acquisition of eBay Classifieds Group on
25 June 2021, Schibsted lost control over Adevinta and ceased to
consolidate Adevinta with effect from closing of the acquisition. The
retained ownership interest in Adevinta is accounted for as an associate.
For loans to joint ventures and associates see Note 20 Trade receivables
and other non-current and current assets. For loans from joint ventures and
associates, see Note 24 Other non-current and current liabilities.
Compensation to Executive management team
2021
2020
Short-term employee benefits
38
29
Post-employment pension benefits
6
6
Termination benefits
8
-
Share-based payment
20
16
Total
71
50
The amounts disclosed in the table are the amounts recognised as an
expense during the reporting period related to the Executive management
team. During 2021 NOK 8 million was related to a director’s payout
according to good leaver terms.
Remuneration to the Board of Directors in 2021 (in NOK 1,000):
Members of the Board and Committees:
Board
remuneration
Committee
remuneration
Board
remuneration
from other Group
companies
Total
remuneration
Ole Jacob Sunde, Chair of the Board. Chair of the Compensation Committee
until June 2021.
1,102
130
-
1,232
Eugénie van Wiechen, Member of the Board.*
617
-
-
617
Hugo Maurstad, Member of the Board from May 2021.
372
-
-
372
Karl-Christian Agerup, Member of the Board. Chair of the Audit Committee
from May 2021.
517
118
-
635
Anna Mossberg, Member of the Board and the Audit Committee.*
567
118
-
685
Rune Bjerke, Member of the Board and the Audit Committee from May 2021.
372
85
-
457
Philippe Vimard, Member of the Board. Chair of the Compensation
Committee from June 2021.*
617
85
-
702
Satu Huber, Member of the Board. Member of the Compensation Committee
from June 2021.*
567
61
-
628
Ingunn Saltbones, Employee representative of the Board and the
Compensation Committee.
517
85
-
602
Torbjörn Harald Ek, Employee representative of the Board.*
567
-
-
567
Hans Kristian Mjelva, Employee representative of the Board from June 2021.*
405
-
-
405
Christian Ringnes, Member of the Board and Chair of the Audit Committee
until May 2021.
517
192
-
709
Birger Steen, Member of the Board and the Audit Committee until May
2021.*
617
118
-
735
Finn Våga, Employee representative of the Board until June 2021.*
567
-
-
567
Maria Elisabet Carling, Deputy employee representative of the Board.
24
-
-
24
Henning Spjelkavik, Deputy employee representative of the Board.
-
-
55
55
Total
7,945
992
55
8,992
* Board remuneration include compensation for travelling hours for directors who do not live in Oslo.
Remuneration of the Nomination Committee
Remuneration to the Chair of the Nomination Committee in 2021 was NOK 139,000 and NOK 86,000 to the other members of the committee.
SCHIBSTED ANNUAL REPORT 2021
NOTES
101
Details on fees to the Group’s auditors for the fiscal year 2021 (excl.
VAT):
Audit
services
Other
attestation
services
Tax
advisory
services
Other non-
audit
services
Total
Schibsted Group
EY
10
1
1
1
13
Other auditors
2
-
-
-
2
Total
12
1
1
1
15
Schibsted ASA
EY
2
-
1
-
3
Details on fees to the Group’s auditors for the fiscal year 2020 (excl.
VAT):
Audit
services
Other
attestation
services
Tax
advisory
services
Other non-
audit
services
Total
Schibsted Group
EY
18
4
11
6
39
Other auditors
2
-
1
2
5
Total
20
4
12
8
45
Schibsted ASA
EY
1
-
5
2
8
Principle
An asset (or disposal group) is classified as held for sale if its carrying
amount will be recovered principally through a sales transaction rather
than through continuing use.
A disposal group includes assets to be disposed of, by sale or otherwise,
together in a single transaction, and liabilities directly associated with
those assets that will be transferred in the transaction.
An asset or a disposal group classified as held for sale is measured at the
lower of carrying amount and fair value less costs to sell. Intangible
assets, property, plant and equipment and right-of-use assets are not
depreciated or amortised, and no share of profit (loss) of joint ventures
and associates is recorded while classified as held for sale. Assets and
liabilities classified as held for sale are presented separately as current
items in the statement of financial position.
A component of the Group that has either been disposed of or is
classified as held for sale, is presented as a discontinued operation if it
was or is part of a single co-ordinated plan to dispose of a separate
major line of business or geographical area of operations. The results of
discontinued operations, comprising the total of post-tax profit (loss)
and post-tax gain (loss) on remeasurement or disposal, are presented in
a separate line item in the income statement.
Discontinued operations and assets and liabilities held for sale
Adevinta was classified as a disposal group held for sale with effect from the
date of Adevinta signing the agreement to acquire 100 percent of eBay
Classified Group (20 July 2020) and until control was lost (25 June 2021).
Adevinta represented a separate major line of business and was therefore
classified as a discontinued operation with effect from signing of the
agreement. Previous periods have been re-presented. See also Note 4
Changes in the composition of the Group.
The effects from not including depreciation, amortisation, impairment and
discontinuing the equity method affected profit (loss) from discontinued
operations positively by NOK 851 million (NOK 605 million) before taxes and
by NOK 741 million (NOK 552 million) after taxes. Adevinta disposed of its
Chilean operations (Yapo.cl) in 2021. An additional loss of NOK 437 million,
compared to the loss recognized by Adevinta, is included in profit (loss)
from discontinued operations to adjust for the effect of previously excluded
amortization charges and impairment losses.
Profit (loss) from discontinued operations in 2021 includes a NOK 60 billion
gain related to loss of control of Adevinta.
Intra-group eliminations between continuing and discontinued operations
are attributed to discontinued operations as that approach is considered to
provide the most relevant information related to results of continuing
operations on an ongoing basis. This attribution results in certain
deviations in amounts presented for discontinued operations below and
amounts previously reported for Adevinta as an operating segment.
SCHIBSTED ANNUAL REPORT 2021
NOTES
102
The following assets and liabilities are included in the disposal groups presented separately in the statement of financial position as at 31 December:
2021
2020
Assets
Intangible assets
-
14,483
Property, plant and equipment and investment property
-
242
Right-of-use assets
-
1,000
Investment in joint ventures and associates
-
3,709
Deferred tax assets
-
17
Other non-current assets
-
1,918
Contract assets
-
62
Trade receivables and other current assets
-
12,572
Cash and cash equivalents
-
1,371
Assets held for sale
-
35,375
Liabilities
Deferred tax liabilities
-
666
Pension liabilities
-
78
Non-current interest-bearing loans and borrowings
-
13,258
Non-current lease liabilities
-
854
Other non-current liabilities
-
49
Current interest-bearing loans and borrowings
-
3,087
Income tax payable
-
56
Current lease liabilities
-
193
Contract liabilities
-
612
Other current liabilities
-
3,181
Liabilities held for sale
-
22,034
Net assets directly associated with disposal group
-
13,340
Amounts included in accumulated other comprehensive income:
Foreign currency translation reserve
-
326
Hedging reserves
-
(1,209)
Reserves of disposal group classified as held for sale
-
(884)
SCHIBSTED ANNUAL REPORT 2021
NOTES
103
Profit (loss) from discontinued operations can be analysed as follows:
2021
2020
Operating revenues
3,799
7,133
Operating expenses
(2,725)
(5,189)
Gross operating profit (loss)
1,074
1,944
Depreciation and amortisation
-
(337)
Share of profit (loss) of joint ventures and associates
-
15
Other income
3
76
Other expenses
(1,179)
(500)
Operating profit (loss)
(102)
1,199
Net financial items
(32)
(1,045)
Profit (loss) before taxes
(134)
154
Taxes
(341)
(387)
Profit (loss) after taxes from discontinued operations
(475)
(233)
Gain on loss of control
60,409
-
Related income tax expense
31
-
Profit (loss) from discontinued operations
59,965
(233)
Other comprehensive income from discontinued operations
1,107
(1,723)
Total comprehensive income from discontinued operations
61,072
(1,956)
Total comprehensive income from discontinued operations attributable to:
Non-controlling interests
(137)
(728)
Owners of the parent
61,209
(1,228)
Earnings per share from discontinued operations in NOK:
Basic
257.85
(0.63)
Diluted
257.41
(0.63)
As in the rest of the world, the COVID-19 pandemic has had a significant
impact on the economies in our markets and parts of our business.
However, there has been a strong rebound thanks to large stimulus
packages, a gradual reopening of society and an acceleration of digital
transformation across industries which has brought new possibilities for
many of our businesses.
In the beginning of the pandemic the job verticals in Nordic Marketplaces
and the travel vertical in Finn saw significant declines in revenues due to
lower volumes. This was also true for both advertising and casual sales in
News Media.
During 2021, we have seen a recovery across all markets in Nordic
Marketplaces and News Media, driving strong growth in revenues and
EBITDA compared to 2020.
In the early stages of the pandemic, Schibsted took measures to maintain
its financial flexibility, including the decision to not pay dividend for 2019
and to refinance a NOK 1 billion bond during 2020.
Schibsted has a well-diversified loan portfolio with loans from the
Norwegian bond market, a group of relationship banks and the Nordic
Investment bank.
The EUR 300 million revolving credit facility was also refinanced during the
year, with a term of five years and two one year extension options. The new
facility is not drawn and secures a strong liquidity buffer.
At the end of 2021, Schibsted’s liquidity position is sound, achieved by
strong profits and cash generation (see also Note 25 Financial risk
management).
Russia's invasion of Ukraine and related sanctions which have been
imposed against Russia and Belarus have caused a significant dislocation
in financial markets, with increased risks to European and global growth.
This is a non-adjusting event without effect on our estimates as at
31 December 2021. At the time of publication of this report, the
consequences of the war are uncertain. Schibsted does not have activities
or direct exposure to these countries, but is following the situation closely.
We have increased focus on and implemented measures against cyber risk
and are continuously monitoring other potential indirect consequences
that may arise as a result of the war.
In November 2020, the Norwegian Competition Authority (NCA) resolved to
prohibit the business combination between Schibsted and Nettbil, which
was acquired in December 2019, and ordered Schibsted to sell its shares in
Nettbil. Schibsted appealed the decision to the Norwegian Competition
Tribunal, and later to the Court of Appeal. On 24 March 2022 the Court of
SCHIBSTED ANNUAL REPORT 2021
NOTES
104
Appeal ruled to overturn the decision from the Norwegian Competition
Tribunal, thereby voiding also the decision of the NCA, meaning Schibsted
is no longer required to sell its shares in Nettbil. The Competition Authority
may appeal the decision to the Supreme Court within a period of four
weeks from the date of the decision.
SCHIBSTED ANNUAL REPORT 2021
ALTERNATIVE PERFORMANCE MEASURES
105
The condensed consolidated financial statements are prepared in
accordance with international financial reporting standards (IFRS). In
addition, management uses certain alternative performance measures
(APMs). The APMs are regularly reviewed by management and their aim is
to enhance stakeholders' understanding of the company's performance
and financial position alongside IFRS measures.
APMs should not be considered as a substitute for, or superior to, measures
of performance in accordance with IFRS.
APMs are calculated consistently over time and are based on financial data
presented in accordance with IFRS and other operational data as described
and reconciled below.
As APMs are not uniformly defined, the APMs set out below might not be
comparable to similarly labelled measures by other companies.
Schibsted has a new reporting structure effective 1 July 2021. Affected
APMs are restated retrospectively to give comparable information. See
Note 6 Operating segments for more information.
With effect from first quarter 2021 Schibsted has ended the reporting of
underlying tax rate. Due to changes in the composition of the Group, the
previous APM does no longer provide increased understanding of
deviations between accounting and taxable profits and a better measure of
taxes payable by the Group, in addition to the information included in
Note 14 Income taxes.
Alternative Performance Measures
Measure
Description
Reason for including
EBITDA
EBITDA is earnings before depreciation and
amortisation, other income and other expenses,
impairment, joint ventures and associates, interests and
taxes. The measure equals gross operating profit (loss).
Shows performance regardless of capital structure, tax
situation and adjusted for income and expenses related
transactions and events not considered by management
to be part of operating activities. Management believes
the measure enables an evaluation of operating
performance.
EBITDA margin
Gross operating profit (loss) / Operating revenues
Shows the operations’ performance regardless of capital
structure and tax situation as a ratio to operating
revenue.
Reconciliation of EBITDA
2021
2020
Gross operating profit (loss)
2,740
2,126
= EBITDA
2,740
2,126
Measure
Description
Reason for including
Liquidity reserve
Liquidity reserve is defined as the sum of cash and cash
equivalents and Unutilised drawing rights on credit
facilities.
Management believes that liquidity reserve shows the
total liquidity available for meeting current or future
obligations.
Liquidity reserve
2021
2020
Cash and cash equivalents
1,108
1,306
Unutilised drawing rights
2,997
6,806
Liquidity reserve
4,105
8,112
Measure
Description
Reason for including
Net interest-bearing debt
Net interest-bearing debt is defined as interest-bearing
loans and borrowings less cash and cash equivalents
and cash pool holdings. Interest-bearing loans and
borrowings do not include lease liabilities.
Management believes that net interest-bearing debt
provides an indicator of the net indebtedness and an
indicator of the overall strength of the statement of
financial position. The use of net interest-bearing debt
does not necessarily mean that the cash and cash
equivalent and cash pool holdings are available to settle
all liabilities in this measure.
Net interest-bearing debt
2021
2020
Non-current interest-bearing loans and borrowings
3,592
3,090
Current interest-bearing loans and borrowings
3,274
678
Cash and cash equivalents
(1,108)
(1,306)
Net interest-bearing debt
5,758
2,462
SCHIBSTED ANNUAL REPORT 2021
ALTERNATIVE PERFORMANCE MEASURES
106
Measure
Description
Reason for including
Earnings per share adjusted
(EPS (adj.))
Earnings per share adjusted for items reported as other
income, other expenses and impairment loss, net of any
related taxes and non-controlling interests.
The measure is used for presenting earnings to
shareholders adjusted for transactions and events not
considered by management to be part of operating
activities. Management believes the measure enables
evaluating the development in earnings to shareholders
unaffected by such non-operating activities.
Earnings per share - adjusted - total
2021
2020
Profit (loss) attributable to owners of the parent
41,341
858
Other income
(331)
(223)
Other expenses
1,350
736
Impairment loss
20,119
61
Gain on loss of control of discontinued operations
(60,409)
-
Taxes and Non-controlling interests related to Other income, Other expenses, Impairment loss and Gain on loss
of control of discontinued operations
(538)
(214)
Profit (loss) attributable to owners of the parent - adjusted
1,532
1,218
Earnings per share – adjusted (NOK)
6.54
5.21
Diluted earnings per share – adjusted (NOK)
6.53
5.20
Earnings per share - adjusted - continuing operations
2021
2020
Profit (loss) attributable to owners of the parent
41,341
858
-of which continuing operations
(18,986)
1,006
-of which discontinued operations
60,327
(148)
Profit (loss) attributable to owners of the parent - continuing operations
(18,986)
1,006
Other income
(328)
(146)
Other expenses
171
237
Impairment loss
20,119
61
Taxes and Non-controlling interests related to Other income, Other expenses and Impairment loss
(30)
(37)
Profit (loss) attributable to owners of the parent - adjusted
946
1,120
Earnings per share – adjusted (NOK)
4.04
4.79
Diluted earnings per share – adjusted (NOK)
4.04
4.78
Measure
Description
Reason for including
Revenues on a foreign exchange
neutral basis
Growth rates on revenue on a foreign exchange neutral
basis are calculated using the same foreign exchange
rates for the period last year and this year.
Enables comparability of development in revenues over
time excluding the effect of currency fluctuation.
Reconciliation of revenues on a foreign exchange neutral
basis
Nordic
Marketplaces
News
Media
eCommerce &
Distribution
Financial
Services &
Ventures
Other/HQ,
Eliminations
Total
Revenues 2021
4,176
7,872
1,913
2,026
(1,364)
14,623
Currency effect
57
67
-
37
(2)
158
Revenues adjusted for currency
4,232
7,939
1,913
2,063
(1,366)
14,781
Revenue growth on a foreign exchange neutral basis
33%
6%
19%
5%
(5%)
15%
Revenues 2020
3,181
7,459
1,604
1,971
(1,307)
12,908
SCHIBSTED ANNUAL REPORT 2021
ALTERNATIVE PERFORMANCE MEASURES
107
Measure
Description
Reason for including
Revenues on a foreign exchange
neutral basis adjusted for
business combinations
Growth rates on revenue on a foreign exchange neutral
basis adjusted for business combinations are calculated
including pre- combination revenues for Oikotie and
Marketplaces Denmark in the comparable figures, and
using the same foreign exchange rates for the period last
year and this year.
Enables comparability of development in revenues over
time excluding the effect of business combinations and
currency fluctuation.
Reconciliation of revenues on a foreign exchange neutral
basis adjusted for business combinations
Nordic
Marketplaces
News
Media
eCommerce &
Distribution
Financial
Services &
Ventures
Other/HQ,
Eliminations
Total
Revenues 2021
4,176
7,872
1,913
2,026
(1,364)
14,623
Currency effect
90
67
-
37
(2)
192
Revenues adjusted for currency
4,266
7,939
1,913
2,063
(1,366)
14,815
Revenues in Marketplaces Denmark 2021
250
-
-
-
-
250
Revenues 2021 adjusted for currency and business
combinations
4,516
7,939
1,913
2,063
(1,366)
15,064
Revenue growth on a foreign exchange neutral basis adjusted
for business combinations
17%
6%
19%
5%
(5%)
11%
Revenues 2020 (presented)
3,181
7,459
1,604
1,971
(1,307)
12,908
Revenues in Oikotie 2020
145
-
-
-
-
145
Revenues in Marketplaces Denmark 2020
534
-
-
-
-
534
Revenues 2020 adjusted for business combinations
3,859
7,459
1,604
1,971
(1,307)
13,586
Currency rates used when converting profit or loss
2021
2020
Swedish krona (SEK)
1.0019
1.0226
Danish krone (DKK)
1.3666
1.4388
Euro (EUR)
10.1633
10.7250
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
108
(NOK million)
Note
2021
2020
Operating revenues
16
194
165
Personnel expenses
4
(169)
(156)
Depreciation and amortisation
(9)
(6)
Other operating expenses
3, 16, 17
(238)
(322)
Operating profit (loss)
(221)
(319)
Financial income
5
1,473
3,032
Financial expenses
5
(164)
(612)
Net financial items
1,309
2,420
Profit (loss) before taxes
1,088
2,101
Taxes
6
(77)
(50)
Profit (loss)
1,011
2,051
(NOK million)
Note
2021
2020
ASSETS
Deferred tax assets
6
72
96
Intangible assets
88
42
Property, plant and equipment
13
15
Investments in subsidiaries
7
12,759
17,801
Investments in associates
7
9,442
127
Other non-current assets
8
6,849
6,656
Non-current assets
29,223
24,737
Current assets
8
490
1,063
Cash and cash equivalents
9
563
983
Current assets
1,054
2,046
Total assets
30,277
26,783
EQUITY AND LIABILITIES
Share capital
10
117
119
Treasury stocks
10
(0)
(2)
Other paid-in capital
10
5,118
5,086
Retained earnings
10
9,531
8,949
Equity
14,767
14,151
Pension liabilities
12
317
299
Other non-current liabilities
13, 14
4,804
4,577
Non-current liabilities
5,121
4,876
Current liabilities
13, 14
10,388
7,755
Total equity and liabilities
30,277
26,783
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
109
(NOK million)
Note
2021
2020
CASH FLOW FROM OPERATING ACTIVITIES
Profit (loss) before taxes
1,088
2,101
Taxes paid
6
(21)
(95)
Depreciation, amortization and impairment losses
11
6
Group contributions included in financial income
5
(360)
(751)
Dividends without cash effect
(197)
Gain on sale of non-current assets
-
(17)
Change in non-current assets and liabilities
8, 13
13
(21)
Net effect pension liability
12
(3)
22
Change in working capital and provisions
8, 13
(46)
(40)
Net cash flow from operating activities
485
1,203
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of intangible assets and property, plant and equipment
(53)
(41)
Change in subsidiaries receivables and liabilities in cash pool (net)
8, 13
(1,048)
(1,756)
Group contributions (net)
527
562
Acquisitions of and capital increase in subsidiaries
7
(65)
(8,087)
Net payment of non-current loans to/from subsidiaries
8
(3,129)
(2,802)
Sale of shares and capital decrease in subsidiaries
7
497
7,912
Net cash flow from investing activities
(3,271)
(4,211)
Net cash flow before financing activities
(2,786)
(3,008)
CASH FLOW FROM FINANCING ACTIVITIES
New interest-bearing loans and borrowings from group companies
13
3,800
1,233
Repayment of other interest-bearing loans and borrowings
13
(1,030)
(104)
Dividends paid
10
(468)
-
Net purchase (sale of treasury shares)
10
65
(74)
Net cash flow from financing activities
2,366
1,055
Net increase (decrease) in cash and cash equivalents
(420)
(1,954)
Cash and cash equivalents as at 1 January
983
2,937
Cash and cash equivalents as at 31 December
9
563
983
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
110
statements of the holding company cover the head office activities.
Activities at head office include the Group´s executive management and
the corporate and common functions within finance, HR, legal, M&A,
communication, learning and development.
The financial statements for Schibsted ASA for the year 2021 were approved
by the Board of Directors on 24 March 2022 and will be proposed to the
General Meeting 3 May 2022.
The financial statements for Schibsted ASA have been prepared in
accordance with the Norwegian Accounting Act and Generally Accepted
Accounting Principles in Norway.
All amounts are in NOK million unless otherwise stated.
Cash and cash equivalents
corporate cash pool system. Schibsted ASA's funds in the cash pool are
classified as Cash and cash equivalents. The subsidiaries positions in the
cash pool are recognised as receivables and liabilities in Schibsted ASA's
balance sheet. Liabilities are classified in their entirety as current. The
classification of receivables as current or non-current depends on
agreement with each subsidiary.
Cash and cash equivalents consist of bank deposits and other monetary
instruments with a maturity of three months or less.
Revenue recognition
Revenues are recognised in the period when the services are rendered.
Classification
An asset or liability is classified as current when it is part of a normal
operating cycle, held primarily for trading purposes, falls due within 12
months or when it consists of cash or cash equivalents on the statement of
financial position date. Other items are classified as non-current.
Shares
Subsidiaries are all entities controlled, either directly or indirectly, by
Schibsted ASA. For further information concerning evaluation whether
Schibsted ASA controls an entity, please see Note 2 Basis for preparing the
financial statements in the consolidated financial statements.
Shares are classified as investment in subsidiaries from the date Schibsted
ASA effectively obtains control of the subsidiary (acquisition date) and until
the date Schibsted ASA ceases to control the subsidiary.
An associate is an entity that Schibsted ASA, directly or indirectly through
subsidiaries, has significant influence over. Significant influence is normally
presumed to exist when Schibsted controls 20 percent or more of the voting
power of the investee.
Subsidiaries and associates are recognised according to the cost method
and yearly tested for impairment.
Group contributions and dividends received are recognised as financial
income, provided that it does not represent a repayment of capital
invested. If dividends / group contribution exceeds withheld profits after
the acquisition date, the excess amount represents repayment of invested
capital, and the distribution will be deducted from the recorded value of the
acquisition in the balance sheet.
Property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets are measured at cost
less accumulated depreciation, amortisation and impairment. Property,
plant and equipment and intangible assets with limited economic lives are
depreciated over the expected economic life. An impairment loss is
recognised if the carrying amount exceeds the recoverable amount.
Impairment losses are reversed if the basis for the impairment is no longer
present.
Leases
Leases are classified as either finance leases or operating leases. Leases
that transfers substantially all the risks and rewards incidental to the asset
are classified as finance leases. Other leases are classified as operating
leases. All of the company´s leases are considered to be operational. Lease
payments related to operating leases are recognised as expenses over the
lease term.
Foreign currency
Foreign currency transactions are translated into the functional currency
on initial recognition by using the spot exchange rate at the date of the
transaction. Foreign currency monetary items are translated with the
closing rate at the balance sheet date. Foreign currency gains and losses are
reported in the income statement in the lines Financial income and
Financial expenses, respectively.
Trade receivables
Trade receivables are recognised at nominal value less provision for
expected loss.
Treasury shares
Acquisition and proceeds from sale of treasury shares are accounted for as
equity transactions.
Pension plans
Schibsted ASA has chosen, in accordance with NRS 6, to use measurement
and presentation principles according to IAS 19R – Employee Benefits.
The accounting principles for pension are consistent with the accounting
principles for the Group, as described in Note 11 Pension plans in the
consolidated financial statements.
Share-based payment
Schibsted ASA accounts for share-based payment in accordance with NRS
15A Share-Based Payment. NRS 15A requires share-based payments to be
accounted for as required by IFRS 2 Share-based Payment. See Note 10
Share-based payment to the consolidated financial statements for
additional information.
Taxes
Tax expense (tax income) comprises current tax payable and changes to
deferred tax assets/liabilities. Deferred tax liabilities and assets are
computed for all temporary differences between the tax basis and the
carrying amount of an asset or liability in the financial statements and the
tax basis of tax losses carried forward. Deferred tax assets are recognised
only when it is probable that the asset will be utilized against future taxable
profit. Taxes payable and deferred taxes are recognised directly in equity to
the extent that they relate to equity transactions.
Contingent liabilities
Contingent liabilities are recognised when it is more probable than not that
future uncertain events will result in outflow of economic resources. The
best estimate of the amount to be paid is included in other provisions in the
balance sheet. Other obligations, for which no liability is recognised, are
disclosed in notes to the financial statements.
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
111
Dividend
Dividend for the financial year, as proposed by the Board of Directors, is
recognised as a liability as at 31 December.
Statement of cash flows
The statement of cash flows is prepared under the indirect method. Cash
and cash equivalents include cash, bank deposits and cash on hand.
2021
2020
Rent and maintenance
9
9
Office and administrative expenses
27
22
Restructuring costs
(0)
13
Professional fees
194
267
Travel, meetings and marketing
9
11
Total operating expenses
238
322
2021
2020
Salaries and wages
109
105
Social security costs
19
16
Net pension expense (Note 12)
13
14
Other personnel expenses
10
10
Share-based payment
18
12
Total personnel expenses
169
156
Number of full time equivalents
96
82
Including trainees
Remuneration to management
See Note 31 Transactions with related parties and Note 10 Share-based
payment to the consolidated financial statements for information
concerning remuneration to management and share-based payment.
Financial income consists of:
2021
2020
Interest income
89
45
Interest income cash pool
97
142
Group contributions received
360
751
Dividends from subsidiaries
667
1,860
Foreign exchange gain (agio)
186
215
Gains on sales of subsidiaries
-
17
Fair value adjustment listed shares
73
-
Total
1,473
3,032
Financial expenses consist of:
2021
2020
Interest expenses
116
96
Interest expenses cash pool
23
86
Interest expenses on pension plans (Note 12)
4
5
Foreign exchange loss (disagio)
-
402
Other financial expenses
21
22
Total
164
612
Interest expenses relates to bonds and bank loans, as well as financial
derivatives.
All material foreign exchange gains and losses relates to financial
derivatives, loans and bank balances. See Note 13 Non-current and current
liabilities for further details. Foreign exchange gains must be seen in
connection with foreign exchange losses.
Schibsted ASA undertake treasury operations to offset currency exposure
for the Group as a result of foreign investments.
Set out below is a specification of the difference between the profit
before taxes and taxable income of the year:
2021
2020
Profit (loss) before taxes
1,088
2,101
Dividends and tax-free group contributions
received
(1,164)
(1,860)
Group contributions payable
(223)
(224)
Other permanent differences
(69)
4
Gain on sale of subsidiaries
(0)
(17)
Change in temporary differences*
(109)
122
Effect of unrecognised actuarial gain (loss) in the
pension liability
(21)
(26)
Taxable income
(498)
98
Tax rate
22%
22%
Taxes payable and taxes charged to expenses are calculated as:
2021
2020
Calculated taxes payable
3
22
Change in net deferred tax asset
24
(27)
Tax related to unrecognised actuarial gain (loss)
in the pension liability
5
6
Tax related to Group contributions payable
46
49
Tax expense
77
50
Effective tax rate is a result of:
2021
2020
Profit (loss) before taxes
1,088
2,101
Tax charged based on nominal rate
349
462
Tax effect permanent differences
(271)
(412)
Taxes
77
50
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
112
The net deferred tax liability (asset) consists of the following:
2021
2020
Temporary differences related to:
Property, plant and equipment
1
(1)
Pension liabilities
(317)
(299)
Other current liabilities
(12)
(138)
Total basis for deferred tax liability (asset)
(329)
(437)
Tax rate
22%
22%
Net deferred tax liability (asset) with applicable year's tax rate
(72)
(96)
Net deferred tax liability (asset)
(72)
(96)
Schibsted ASA is the ultimate parent company in the Schibsted Group with operations worldwide. For more information about these operations, see Note 6
Operating segments to the consolidated financial statements.
Shares in subsidiaries directly owned by Schibsted ASA:
Ownership and
voting share
Location
Carrying amount
2021
Carrying amount
2020
Schibsted Tillväxtmedier AB
100%
Stockholm, Sweden
78
75
Schibsted Norge AS
100%
Oslo, Norway
2,587
2,502
Schibsted Sverige AB
100%
Stockholm, Sweden
204
701
Adevinta ASA
33.51%
Oslo, Norway
-
9,301
Schibsted Eiendom AS
100%
Oslo, Norway
120
120
Schibsted Nordic Marketplaces AS
100%
Oslo, Norway
8,277
4,627
Schibsted Enterprise Technology AB
100%
Stockholm, Sweden
12
12
Schibsted Product & Technology AS
100%
Oslo, Norway
392
292
Schibsted News Media AB
100%
Oslo, Norway
50
-
Schibsted Nova AS
100%
Oslo, Norway
6
-
SPT Nordics Ltd
100%
London, UK
-
3
Lendo AS
100%
Oslo, Norway
1,034
169
Lendo Topco AS
100%
Oslo, Norway
-
-
Schibsted Tech Polska
1%
Krakow, Poland
-
-
Total
12,759
17,801
2021
1. Group contributions payable (net) is capitalized as part of investments, with a total of NOK 162 million.
2. The increased carrying amount in entities Lendo AS and Schibsted Nordic Markedplaces AS is due to capital increase in relation to debt conversion.
3. Schibsted News Media AB and Schibsted Nova AS were established in 2021.
4. The ownership of PodMe AB was transferred from Schibsted Tilväxtmedier AB to Schibsted ASA during 2021. Finally, the shares were used as a part of a
capital increase in Schibsted Norge AS.
5. Following the completion of Adevinta's acquisition of eBay Classifieds Group on 25 June 2021, a share issue in Adevinta diluted the ownership interest of
Schibsted to 33.15 percent. The retained ownership interest in Adevinta will be accounted for as an associate. See Note 4 Changes in the composition of the
Group and Note 33 Assets held for sale and discontinued operations in the consolidated financial statements for further details.
Ownership and
voting share
Location
Carrying amount
2021
Equity
Polaris Media ASA
29.44%
Trondheim, Norway
141
1,126
Adevinta ASA
33.15%
Oslo, Norway
9,301
34,388
Total
9,442
Fair value of the shares in Polaris Media ASA is NOK 1,338 million as of 31 December 2021. Fair value of the shares in Adevinta ASA is NOK 47,630 million as of
31 December 2021.
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
113
Non-current
Current
2021
2020
2021
2020
Group companies' liabilities in cash pool
5,257
3,831
-
-
Other receivables from Group companies
1,472
2,824
418
819
Other receivables
10
2
29
31
Financial derivatives
-
-
43
212
Publicly listed stocks
111
-
-
-
Total
6,849
6,656
490
1,063
The non-current receivables from group companies in 2021 consisted of a loan to Schibsted Nordic Marketplaces AS.
2021
2020
Net assets in cash pool
549
977
Net assets outside the cash pool
14
6
Total Cash and cash equivalents
563
983
Schibsted ASA has a multi-currency cash pool with Danske Bank, in which
almost all the Schibsted excl. Adevinta subsidiaries are included. The cash
pool has been established to optimize liquidity management for Schibsted.
The Group has an overdraft facility of NOK 400 million linked to the cash
pool with Danske Bank. At year-end 2021 the facility was not drawn.
Excess liquidity is placed in our relationship banks, in the cash pool or in the
short-term money market.
Payroll withholding tax is not restricted cash as Schibsted holds a tax
guarantee for the purpose, for further details see Note 15 Guarantees.
Share capital
Treasury
shares
Other paid-in
capital
Retained
earnings
Total
Equity as at 31 December 2020
119
(2)
5,086
8,949
14,151
Change in treasury shares
(2)
2
17
47
65
Share-based payment
-
-
15
-
15
Unrecognised actuarial gain (loss) in pension plans
-
-
-
(17)
(17)
Dividend
-
-
-
(459)
(459)
Profit (loss)
-
-
-
1,011
1,011
Equity as at 31 December 2021
117
(0)
5,118
9,531
14,767
The share capital of Schibsted ASA is NOK 117,130,512 divided on
104,459,958 A-shares of NOK 0.50 par value and 129,801,066 B-shares of
NOK 0.50 par value. Treasury shares as at 31 December 2021 comprise 0 A-
shares and 224,165 B-shares.
The par value of treasury shares is presented on a separate line within other
paid-in capital with a negative amount. For more information on number of
shares, see Note 28 Equity to the consolidated financial statements.
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
114
The 20 largest shareholders as at 31 December 2021
Number of A-
shares
Number of B-
shares
Toal number of
shares
Ownership
Voting share
Blommenholm Industrier AS
28,541,262
30,013,354
58,554,616
25.0 %
26.9 %
Folketrygdfondet
9,205,395
10,815,669
20,021,064
8.5 %
8.8 %
State Street Bank and Trust Comp
3,500,085
6,671,232
10,171,317
4.3 %
3.5 %
Alecta Pensionsforsakring
-
5,193,000
5,193,000
2.2 %
0.4 %
NWT MEDIA AS
2,592,000
2,592,000
5,184,000
2.2 %
2.4 %
The Bank of New York Mellon
-
5,101,912
5,101,912
2.2 %
0.4 %
Morgan Stanley & Co. Int. Plc.
565
4,192,395
4,192,960
1.8 %
0.4 %
JPMorgan Chase Bank, N.A., London
1,668,967
1,496,514
3,165,481
1.4 %
1.5 %
State Street Bank and Trust Comp
1,293,889
1,686,151
2,980,040
1.3 %
1.2 %
JPMorgan Chase Bank, N.A., London
1,777,202
1,009,349
2,786,551
1.2 %
1.6 %
Skandinaviska Enskilda Banken AB
21,732
2,263,038
2,284,770
1.0 %
0.2 %
State Street Bank and Trust Comp
944,963
1,302,268
2,247,231
1.0 %
0.9 %
Goldman Sachs International
-
2,105,177
2,105,177
0.9 %
0.2 %
The Northern Trust Comp, London Br
2,054,028
18,054
2,072,082
0.9 %
1.8 %
The Northern Trust Comp, London Br
1,293,635
767,742
2,061,377
0.9 %
1.2 %
Euroclear Bank S.A./N.V.
54,844
1,845,396
1,900,240
0.8 %
0.2 %
BNP Paribas Securities Services
639,152
1,242,903
1,882,055
0.8 %
0.7 %
State Street Bank and Trust Comp
186,992
1,656,554
1,843,546
0.8 %
0.3 %
Verdipapirfondet KLP Aksjenorge IN
379,644
1,452,933
1,832,577
0.8 %
0.4 %
State Street Bank and Trust Comp
1,061,002
759,880
1,820,882
0.8 %
1.0 %
Total 20 largest shareholders
55,215,357
82,185,521
137,400,878
58.8 %
54.0 %
The list of shareholders is based on the public VPS list. For further information regarding the underlying ownership, see the chapter Share information in
Schibsted's annual report.
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
115
Number of shares owned by the Board of Directors and the Group Management:
Number of A-
shares
Number of B-
shares
Total number of
shares
Ole Jacob Sunde (Chairman of the Board)
40,000
100,000
140,000
Karl-Christian Agerup (Member of the Board)
4,400
-
4,400
Rune Bjerke (Member of the Board)
-
-
-
Satu Huber (Member of the Board)
1,500
-
1,500
Hugo Maurstad (Member of the Board)
-
-
-
Anna Mossberg (Member of the Board)
-
-
-
Philippe Vimard (Member of the Board)
-
-
-
Eugénie van Wiechen (Member of the Board)
-
-
-
Torbjörn Ek (Employee representative)
133
1,013
1,146
Hans Kristian Mjelva (Employee representative)
-
-
-
Ingunn Saltbones (Employee representative)
416
1,282
1,698
Kristin Skogen Lund (CEO)
-
555
555
Ragnar Kårhus
-
254
254
Mette Krogsrud
63
414
477
Sven Størmer Thaulow
-
4,067
4,067
Andrew Kvålseth
-
-
-
Christian Printzell Halvorsen
-
265
265
Siv Juvik Tveitnes
507
5,258
5,765
Dan Ouchterlony
2,179
7,189
9,368
Maria Elisabet Carling
-
111
111
Henning Spjelkavik
318
1,543
1,861
Total Board of Directors and Group Management
49,516
121,951
171,467
The total number of issued shares in Schibsted ASA is 104,459,958 A-shares and 129,801,066 B-shares as at 31 December 2021. The number of shareholders
as at 31 December 2021 is 8,325. Foreign ownership is 53.8 percent (53.1 percent in 2020). See Note 28 Equity to the consolidated financial statements for
more information regarding number of shares.
The Chairman of the Board, Ole Jacob Sunde is also member of the Board in Blommenholm Industrier.
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
116
The company is obliged to have an occupational pension scheme in accordance with the Act on Mandatory Company Pensions (“Lov om obligatorisk tjeneste-
pensjon”). The company’s pension scheme meets the requirements of the Act.
As at 31 December 2021 the pension plans covered 30 members (total 32 as at 31 December 2020). Note 11 Pension plans to the consolidated financial
statements contains further description of the pension plans and the principal assumptions applied.
Amounts recognised in profit or loss:
2021
2020
Current service cost
5
5
Net interest on the net defined benefit liability
4
5
Net pension expense - defined benefit plans
10
10
Pension expense defined contribution plans
5
5
Pension expense multi-employer defined benefit plans accounted for as defined contribution plans
2
1
Net pension expense
16
16
-of which included in Profit or loss - Personnel expenses
13
14
-of which included in Profit or loss - Financial income
(1)
(3)
-of which included in Profit or loss - Financial expenses
4
5
Amounts recognised in the balance sheet:
2021
2020
Present value of funded defined benefit liabilities
27
35
Fair value of plan assets
(23)
(29)
Present value (net of plan assets) of funded defined benefit liabilities
4
6
Present value of unfunded defined benefit liabilities
313
292
Net pension liabilities
317
298
Social security tax included in present value of defined benefit liabilities
39
37
Changes in pension liabilities:
2021
2020
As at 1 January
299
251
Net pension expense
10
10
Contributions / benefits paid
(13)
(13)
Impact of acquisition/disposals
-
25
Unrecognised actuarial gain (loss) recognised in equity (incl. tax)
21
26
As at 31 December
317
299
New measurement of defined benefit obligation includes:
2021
2020
Actuarial gains and losses arising from changes in financial assumptions
13
31
Other effects of remeasurement (experience deviation)
8
(5)
Remeasurement of defined benefit liabilities
21
26
The non-current liabilities to group companies consist of a loan from Lendo AB and Svenska Dagbladet Holding AB.
Non-current
Current
2021
2020
2021
2020
Liabilities to credit institutions (Note 14)
192
282
77
81
Bond issues (Note 14)
3,400
2,800
3,200
600
Financial derivatives
8
-
8
212
Dividends accrued
-
-
468
477
Group companies' receivables in cash pool
-
-
6,291
5,914
Other liabilities to group companies
1,204
1,494
227
242
Taxes payable
-
-
-
22
Other liabilities
-
1
117
209
Total
4,804
4,577
10,388
7,755
SCHIBSTED ANNUAL REPORT 2021
FINANCIAL STATEMENT / ASA
117
Financial risk management
Funding and control of refinancing risk is handled by Group treasury in
Schibsted ASA. Schibsted has a diversified loan portfolio both in terms of
loan sources and maturity profile. The most important funding sources are
the Norwegian bond market and banks.
For management of interest rate risk and currency risk, see Note 25
Financial risk management to the consolidated financial statements.
Interest-bearing borrowings, composition and maturity profile:
Non-current
Current
2021
2020
2021
2020
Bonds issued
3,400
2,800
3,200
600
Bank loans
192
282
77
81
Total carrying amounts
3,592
3,082
3,277
681
For more details on bond issues, bank loans and credit facilities, see
Note 26 Interest-bearing loans and borrowings to the consolidated
financial statements.
2021
2020
Guarantees on behalf of Group companies
358
284
Other guarantees
2
2
Total
359
286
A guarantee of up to NOK 272 million to Danske Bank is included in
Guarantees on behalf of Group companies. This amount primarily relates to
guarantees for tax withholdings.
Schibsted ASA has issued parent company guarantee as security for
payment of office rent in some subsidiaries.
Schibsted ASA has business agreements with companies in the Group. The
pricing of all transactions with Group companies are based on arm's length
principle.
Schibsted ASA charge their subsidiaries for their share of costs related to
Group services (management fee). In addition, revenues consist of
consultant fees, income from lease of office premises as well as fees for
subsidiaries' participation in programmes for management and
organisational development. All Schibsted ASA´s operating revenues are
from Group Companies.
2021
2020
Sale of services to Group companies
194
165
Purchase of goods and services from Group
companies
152
128
Schibsted ASA has lease obligations related to off-balance sheet operating
assets.
Rental expenses were NOK 18 million in 2021 and NOK 16 million in 2020.
The most significant leases relate to lease of office premises and
software/IT-services. For more details on lease of office premises, see
Note 19 Leases to the consolidated financial statements.
We confirm that, to the best of our knowledge, the financial statements for the period from 1 January to 31 December 2021 have been prepared in accordance
with applicable accounting standards and give a true and fair view of assets, liabilities, financial position and profit or loss of the Company and the Group
taken as a whole and that the Board of Directors’ report includes a fair review of the development and performance of the business and the position of the
Company and the Group taken as a whole, together with a description of the principal risks and uncertainties that they face.
Oslo, 24 March 2022
Schibsted ASA’s Board of Directors
...........................................
Ole Jacob Sunde
Board Chair
...........................................
Karl-Christian Agerup
Board member
...........................................
Rune Bjerke
Board member
...........................................
Torbjörn Ek
Board member
...........................................
Satu Huber
Board member
...........................................
Hugo Maurstad
Board member
...........................................
Hans Kristian Mjelva
Board member
...........................................
Anna Mossberg
Board member
...........................................
Ingunn Saltbones
Board member
...........................................
Philippe Vimard
Board member
...........................................
Eugénie van Wiechen
Board member
...........................................
Kristin Skogen Lund
CEO
SCHIBSTED ANNUAL REPORT 2021
SHARE INFORMATION
124
Schibsted is listed on Oslo Børs, and our aim is that our shares
should be perceived as an attractive investment. A competitive
return should be based on a sound financial position and be
ensured through long-term growth in the share price and a
dividend. The company’s share price should reflect the company's
long-term value creation.
The strategy and vision adopted by Schibsted’s Board of Directors
implies that the Group’s operations must adapt and develop
rapidly. Schibsted’s capital structure must be sufficiently robust to
take advantage of value-enhancing opportunities in the context of
the competitive dynamic as well as fluctuations in general and
economic conditions. The share is split into an A-share with
10 voting rights and a B-share with 1 voting right. These two share
classes enhance Schibsted’s long-term financial flexibility by
enabling the company more freely to access the equity market.
31 December 2021
31 December 2020
Number of registered shareholders
8,325
6,166
Share of non-Norwegian shareholders
54%
53%
Average daily trading volume (SCHA/SCHB)
152k / 115k
262k / 168k
Average daily trading value (SCHA/SCHB)
NOK 60m / NOK 41m
NOK 79 m / NOK 45 m
Turnover velocity (SCHA/SCHB)
36% / 22%
61% / 30%
Turnover velocity Oslo Børs
79%
60%
31 December 2021
31 December 2020
Norway
46.2%
46.9%
USA
18.6%
20.8%
UK
14.8%
13.6%
Ireland
4.6%
4.2%
Sweden
4.6%
3.6%
The trading data in the table above is based on data from Oslo Børs.
Schibsted conducts a quarterly analysis of shareholders registered
at nominee accounts. A list of Schibsted’s shareholders including
those registered at nominee accounts is presented below. The list
is updated as of 17 January 2022.
RANK
NAME
A-SHARES
B-SHARES
TOTAL
% OF CAPITAL
1
Blommenholm Industrier AS
28,541,262
30,013,354
58,554,616
25.0%
2
Baillie Gifford & Co.
11,268,833
10,841,884
22,110,717
9.4%
3
Folketrygdfondet
9,205,395
10,815,669
20,021,064
8.5%
4
Fidelity Management & Research Company LLC
4,874,162
3,943,445
8,817,607
3.8%
5
Adelphi Capital LLP
2,229,832
4,267,064
6,496,896
2.8%
6
The Vanguard Group, Inc.
2,684,510
2,900,098
5,584,608
2.4%
7
Alecta pensionsförsäkring, ömsesidigt
-
5,193,000
5,193,000
2.2%
8
NWT MEDIA AS
2,592,000
2,592,000
5,184,000
2.2%
9
BlackRock Institutional Trust Company, N.A.
2,117,456
2,792,893
4,910,349
2.1%
10
DNB Asset Management AS
1,281,457
3,212,487
4,493,944
1.9%
11
Mitsubishi UFJ Trust and Banking Corporation
2,328,002
1,761,059
4,089,061
1.7%
12
Pelham Capital Ltd
-
4,077,332
4,077,332
1.7%
13
KLP Forsikring
438,401
2,948,924
3,387,325
1.4%
14
Storebrand Kapitalforvaltning AS
1,438,324
1,822,783
3,261,107
1.4%
15
Vor Capital LLP.
-
2,300,910
2,300,910
1.0%
16
Premier Miton Investors
2,244,674
-
2,244,674
1.0%
17
Arctic Fund Management AS
-
2,117,888
2,117,888
0.9%
18
Alfred Berg Kapitalforvaltning AS
706,817
1,270,065
1,976,882
0.8%
19
Nordea Funds Oy
137,873
1,714,351
1,852,224
0.8%
20
Fidelity Institutional Asset Management
1,251,258
598,837
1,850,095
0.8%
The shareholder identification data is provided by Nasdaq OMX.
The data is obtained through an analysis of beneficial ownership
and fund manager information provided in replies to disclosure of
ownership notices issued to all custodians on the Schibsted share
register. Whilst every reasonable effort is made to verify all data,
neither Nasdaq OMX nor Schibsted can guarantee the accuracy of
the analysis.
SCHIBSTED ANNUAL REPORT 2021
SHARE INFORMATION
125
For an overview of the 20 largest shareholders as of 31 December
2021 from the public VPS register, refer to the annual accounts for
Schibsted ASA, Note 11 Shareholder structure.
Dividend and buyback of shares
Distribution of dividend and opportunity to buy back shares are
regarded as suitable ways to adapt the capital structure. The
Group’s dividend policy is to place emphasis on paying a stable to
increasing dividend amount over time. In years when there is an
economic slowdown, or for other reasons weaker cash flows in the
company, the company may reduce or decide not to pay dividends.
The Board of Directors has decided to propose to the Annual
General Meeting on 4 May 2022 to pay a dividend for 2021 of
NOK 2.00 per share. Subject to the decision of the Annual General
Meeting, the dividend will be paid on 13 May 2022 to those
registered as shareholders on the date of the Annual General
Meeting.
Pursuant to an authorization granted by the Annual General
Meeting in 2021 the Board of Directors is currently authorized to
repurchase up to 10 percent of the company's share. Potential
repurchases will take place over time and should be viewed in
connection to Schibsted’s dividend policy, investment
opportunities, and long-term perspectives for its capital structure.
Shareholder structure
Blommenholm Industrier, which is controlled by the Tinius Trust,
is Schibsted’s largest shareholder, giving the Group long-term
ownership stability. As a consequence, the number of A-shares
issued will normally remain stable over time. B-shares may,
together with debt, be used as a source of financing for growth in
the form of acquisitions or organic investments.
Schibsted’s shares are freely marketable. The wording of the
company’s Articles of Association reflects the Group’s publishing
responsibilities and role in society as a media company.
Schibsted’s independence and integrity are ensured through
restrictions on ownership and voting rights in Article 6 of the
Articles of Association. No shareholder may own or exercise voting
rights for more than 30 percent of the shares represented at the
Annual General Meeting.
Any shareholder owning 25 percent or more of Schibsted’s
A-shares is entitled to appoint one director directly. Blommenholm
Industrier, which owned 27.3 percent of the A-shares at year-end
2021, is currently the only shareholder to hold this right.
Return
The Schibsted shares are listed on Oslo Børs with the ticker codes
SCHA and SCHB. Both share classes are among the most traded in
Norway. The A-shares were included in the OBX index throughout
2021. The OBX index comprises the 25 most liquid stocks on the
Oslo Børs.
Schibsted is covered by sell-side analysts in Scandinavia and
London. At year-end 2021, 18 brokers, nine of them based outside
Scandinavia, officially covered the Schibsted share.
In 2021, the Schibsted A-share produced a total return for
shareholders of -6.6 percent. The Schibsted B-share produced a
total return for shareholders of -6.5 percent. By comparison, the
Oslo Stock Exchange Benchmark Index (OSEBX) produced a return
of 23.4 percent.
Share price development for Schibsted compared to various
indices and peers can be accessed at www.schibsted.com/ir/.
*Brands that Schibsted owns or has invested in
