Scout24 Se · XETR:G24
Scout24 — Shareholder Meeting (June 2020)
43 slides from Scout24's shareholder meeting presentation, Jun 18, 2020
Slide 1: Make it happen! Annual General Meeting
Make it happen! Annual General Meeting 18 June 2020
Slide 2: Disclaimer
Disclaimer This document has been issued by Scout24 AG (the “Company” and, together with its direct and indirect subsidiaries, the "Group") and does not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or
Slide 3: Welcome to our first all virtual Annual General Meeting
Welcome to our first all virtual Annual • No physical participation for shareholders / representatives General Meeting • The official language of the Annual General Meeting is GERMAN – an additional simultaneous English translation of the entire Annual General Meeting will be provided • SPEECHES by
Slide 4: The general procedure is as follows
The general procedure is as follows: 1. Report of the Supervisory Board • Proposals for election to the Supervisory Board • Video message Dr Elke Frank 2. Report on the past financial year and review of the current year 2020 • Chief Executive Officer Tobias Hartmann • Chief Financial Officer Dr Dirk
Slide 5: Report of the Supervisory Board
Report of the Supervisory Board 5 Annual General Meeting 2020
Slide 6: Main focus of the Supervisory Board's work in 2019
Main focus of the CORPORATE GOVERNANCE Supervisory Board's Personnel work in 2019: Collaboration Corporate New Supervisory Board members: governance and Christoph Brand, Frank H. Lutz, André Schwämmlein strategy Committees: newly founded remuneration committee, new composition of committees STRATEGY
Slide 7: Thanks to Management Board and employees
Good Bye AutoScout24, FinanceScout24 and FINANZCHECK teams Successful transaction and timely execution Thanks to Management A successful year for Scout24 Board and with a fantastic business employees development Distinct future growth strategy despite Covid-19 7 Annual General Meeting 2020
Slide 8: The Supervisory Board and its committees held a total of 18 meetings
The Supervisory Board and its committees held a total of 18 Remune- Partici- Supervisory Executive Audit meetings in 2019 SB Member* Board Committee Committee ration Committee pation quota Dr Hans-Holger 7/8 3/3 6/6 94% Albrecht Supervisory Board 4 ordinary meetings Christoph Brand 4/4 2/2 100% 4 ex
Slide 9: We have reviewed the effectiveness of the Supervisory Board
We have reviewed the effectiveness of the Supervisory Board and bench- marked the individual skills, supported by an experienced external advisor Consulting on Circulation of a Meetings Draft report Presentation Personal approach, questionnaire with with results; and discussion feedback in process a
Slide 10: First Corporate Governance Roadshow in February 2020
First Corporate Governance Roadshow in February 2020: 2.5 days, 14 meetings Topics • AutoScout24 sale • Long-term strategy • Governance system • Management Board remuneration system • Supervisory Board composition • Supervisory Board competence profile • Operating procedures Supervisory Board and me
Slide 11: Agenda Item refers to the election of new members to the Supervisory Board
Agenda Item 6 • Terms of office of all Supervisory Board members will expire at the end of the Annual General Meeting on 18 June 2020 refers to the • New elections for all positions on the Supervisory Board election of new • Shortened terms of four years for all newly elected members (instead member
Slide 12: New candidate Dr Elke Frank
New candidate Dr Elke Frank Dr Elke Frank Born 1971, German Term until AGM 2024 Member of the Management Board of Software AG (publicly listed) Other mandates: • Kuratorium of the Fraunhofer Institute for Industrial Engineering IAO (pro bono, non-listed) 12 Annual General Meeting 2020
Slide 13: Together with Elke Frank: six candidates covering diversified skills
Together Sechs with Elkefür Kandidaten Frank: densix candidatesdie Aufsichtsrat, covering a broad ein breites und and weit diversified gefächertes range of skills Spektrum and expertise an Fachwissen abdecken Dr Hans-Holger Albrecht Frank H. Lutz Christoph Brand Peter Schwarzenbauer André Schwämmlei
Slide 14: Information on the audit of the financial statements
Information on the audit of the financial statements Annual Financial Statements 2019 Consolidated Scout24 AG Financial Statements 2019 Unqualified audit opinion Adequate information and monitoring system Audit reports of the auditor Approval and adoption by the Supervisory Sustainability Report 201
Slide 15: Report of the Management Board
Report of the Management Board 15 Annual General Meeting 2020
Slide 16: In 2019 we made important strategic, operational and organisational decisions
In 2019 we made important strategic, operational and organisational decisions Focus on Introduction of streamlined, core business areas more agile structures and AutoScout24 & identification of cost ImmoScout24 efficiencies This is a call-out. Use it to emphasize specific content. Strategic review S
Slide 17: Expanding our market leadership and focusing on profitable growth
Expanding our market leadership and focusing on profitable growth have been paramount From classifieds to a networked Largest product innovation marketplace of the future: push in the history of - Larger addressable market Scout24 - Additional sources of revenues Communication of growth and profitab
Slide 18: We have delivered record results in 2019
We have delivered record results in 2019 … New Scout24 Group including IS24 and real estate-related CS activities €349.7m €209.3m 60% +9.9% +10.9% +1 pp revenue from ordinary operating ordinary operating continuing operations EBITDA EBITDA margin 13.5m 425,000 #1 +4.6% -1.6% 1.9x more listings uniqu
Slide 19: … and generated substantial value for our shareholders
… and generated substantial value for our shareholders Scout24 share price (indexed) in € 65 TSR* 60 49% 55 31% 50 45 40 35 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Sep-19 Oct-19 Nov-19 Dec-19 Scout24 Datenreihen1 MDAX Datenreihen5 Source: FactSet 14 January 2020 *) Total Shareholder Return
Slide 20: We are aware of our social responsibility
At the same time, we are aware of our social responsibility and have driven forward key initiatives in 2019 Integrating sustainability successfully into the corporate activity • Reduced CO2 emissions by 8% Scout24 DNA • Social Days with more Our “Culture Code“ than 600 employees describes who we are
Slide 21: In the Covid-19 crisis we support our partners
In the Covid-19 crisis we support our partners and take responsibility for our sector Immediate-action program Measures “#GemeinsamDurchDieKrise“: 10-point program for a well functioning real estate market Liquidity Plus 1. Digitalization of building permit procedures Survive All professional custom
Slide 22: We understand the needs of all participants of the real estate eco-system
We understand and are oriented towards the needs of all participants of the real estate eco-system Consumers Home owners Agents (seeking real estate) (sellers, landlords, apartment, house) (sale, rent) My biggest How do I sell my house and problem is find the right agent to help Tired of real gettin
Slide 23: Introducing Rolf – successful agent and IS24 client
Introducing Rolf – Successful agent for residential real estate and IS24 client • Rolf is real estate agent in a large German city 16,680 Residential Real Estate Partners 729 € Residential • He subscribed to an annual contract with (Agents, property managers, finance Real Estate Partner IS24 partner
Slide 24: We help Rolf becoming even more successful
We help Rolf becoming even more successful usu. 2 Monthly net cold rents as agent 4.5 % Average fee rate for property sales brokerage fee for a rental apartment • Rolf completes c. 25 (3.56% - 7.14% incl. VAT. range for agent fees) transactions per year, thereof up to 15 sales, the remainder • renta
Slide 25: Meet owner Stefanie: She starts her real estate sale at IS24
Meet owner Stefanie: She starts her real estate sale at IS24 Stefanie browses in Stefanie joins IS24 sells Stefanie’s Thanks to real estate 1 the price atlas for 2 HomesellerHub 3 lead to relevant 4 agent & digital comparable objects and enters the details agents via the agent professional tools, th
Slide 26: Introducing the Schneider family
Introducing the Schneider family. They are looking for a larger apartment with two rooms for their children Mrs. Schneider subscribes to a MieterPlus membership for 6 months at 19.95 €/ month She receives access to exclusive features such >165,000 as: Check-your-chances, exclusive listings, viewings
Slide 27: Our products are tailored precisely to the needs of our partners and consumers
Our products are tailored precisely to the Home owners needs of our Agents ▪ Finding the right agent ▪ Maximize sales price partners and ▪ Acquire new mandates ▪ Safe and efficient consumers (“digital farming”) transaction ▪ Use most efficient marketing channel ▪ Build local brand ▪ One-stop shop Co
Slide 28: Our long-term strategy: expand the real estate ecosystem and drive digitization
Our long-term strategy: We will further expand the real estate ecosystem and drive forward digitization We strengthen our We develop innovative, We collect and provide #1 market position smart products and more data, thereby in Germany expand our TAM increasing market transparency We build a compreh
Slide 29: Make it happen! We have delivered: a successful year 2019
Make it happen! … We have delivered: a successful year 2019 Record results in 2019 • Revenue growth from continuing operations: +10% • Group ordinary operating EBITDA margin: 60% • Enterprise value: 2.9bn € = 26.1x EV / EBITDA 2019 Value maximising sale of • 2.8 bn € net proceeds from sale AutoScout
Slide 30: Financial results full year 2019 and Q1 2020
Financial results full year 2019 and Q1 2020 30 Annual General Meeting 2020
Slide 31: 2019 was an eventful year with record results
2019 was an eventful year with record results Financial Highlights – continuing and discontinued operations in €m External Revenue ooEBITDA ooEBITDA Margin 2019 2018 +/- 2019 2018 +/- 2019 2018 +/- New Scout24-Group 349.7 318.2 +9.9% 209.3 188.7 +10.9% 60% 59% +1 pp (continuing operations) New ImmoS
Slide 32: The continuing operations consist of three segments going forward
The continuing operations consist of three segments going forward Sources of revenue RESIDENTIAL REAL ESTATE BUSINESS REAL ESTATE • Business with Residential Real Estate Partners, including real • Business with real estate agents who primarily offer estate agents primarily offering residential prope
Slide 33: We delivered strong growth across all three new segments in 2019
We delivered strong growth across all three new segments in 2019 + 11.0% 62.2 % 244.9 2019 220.7 ooEBITDA margin (over all three new IS24 segments) Revenues in €m + 10.3% 63.1 69.6 + 8.9% 61.3 % 32.1* 35.0 2018 ooEBITDA margin (over all three new Residential Real Estate Business Real Estate 3rd Part
Slide 34: On Group level we achieved an ooEBITDA margin of 60%
On Group level we achieved an ooEBITDA margin of 60% … (€m) FY 2019 FY 2018 +/- Marketing costs 23.4% higher due to increased online marketing for External revenues 349.7 318.2 +9.9% Realtor Lead Engine Own work capitalised 14.0 11.2 +24.7% IT costs up 20.1% due to increasing share of cloud-based pl
Slide 35: The adjusted EPS was 1.77€
… the adjusted EPS was 1.77€ (€m) 2019 2018 +/- Strong increase in non-operating Ordinary operating EBITDA 209.3 188.7 +10.9% items mainly due to share price performance and resulting share- Non-operating items –45.7 –24.5 +86.3% based remuneration (€29.0m in Reported EBITDA 163.7 164.2 -0.3% 2019)
Slide 36: We propose a regular dividend of 91 cents per share
We propose a regular dividend of 91 cents per share 2019 2018 Dividend at the upper end of the targeted dividend payout ratio of 30% - 50% Adjusted net income € 189.6m € 169.9m of adjusted net income. Adjusted earnings per share* € 1.77 € 1.58 Dividend per share € 0.91 € 0.64 Sufficient liquidity fo
Slide 37: The dividend is paid by Scout24 without tax deductions
The dividend is paid by Scout24 without tax deductions 1. Commercial law: Available Scout24 AG – HGB balance sheet profit based on HGB (€m) 31/12/2019 31/12/2018 (“Ausschüttbarer Gewinn“) €884.7m is the distributable amount Capital stock, outstanding 105.2 107.6 according to HGB as of 31 Dec. 2019 a
Slide 38: The dividend payment is part of our capital return plan
The dividend payment is part of our capital return plan 2,840 up to 780 Share buybacks of up to ~€1.69 billion Reconfirming debt repayments of up to €780 million - €680 million already repaid 94 Cash (€ million) 490 Reconfirming 2019 dividend of which €680 up to 200 payout proposal of €94 million mi
Slide 39: Three agenda points refer to our plan to return capital from the AS24 sale
Three agenda points refer to our plan to return capital from the AS24 sale proceeds to our shareholders 2 Resolution on the distributable profit of Scout24 AG Agenda • Distribution of a dividend of total amount of € 93,663,220.56 for the expired Point financial year 2019. • Number of shares entitled
Slide 40: Agenda Item 10 refers to the profit and loss transfer agreement
Agenda Item 10 Organisation Chart as of 31 December 2019 refers to the profit (AutoScout24, FINANZCHECK = discontinued operations) and loss transfer agreement with Scout24 AG Munich Scout24 Beteiligungs SE Scout24 Beteiligungs SE 60.1% Bonn • Profit and loss transfer agreement 100% with Scout24 Bete
Slide 41: ImmoScout24 with strong increase of ooEBITDA margin in Q1 2020
ImmoScout24 with strong increase of ooEBITDA margin in Q1 2020 Key figures at a glance €m External Revenues ooEBITDA ooEBITDA Margin Q1 2020 Q1 2019 +/- Q1 2020 Q1 2019 +/- Q1 2020 Q1 2019 +/- New Scout24-Group 55.1 48.2 14.4% 61.8% 57.1% +4.7 pp 89.1 84.4 +5.6% (continuing) ImmoScout24 89.1 84.3 +5
Slide 42: All three segments contributed to the increase in EBITDA margin
All three segments contributed to the increase in EBITDA margin Segment overview 60.6% 65.0% 66.1% 73.6% 37.2% 39.9% 64.6 % Q1 2020 IS24 + 7.1% ooEBITDA margin 63.4 Revenues in €m 59.2 + 6.4% 59.4 % 16.8 17.9 -6.4% Q1 2019 8.3 7.8 IS24 ooEBITDA margin Residential Real Estate Business Real Estate 3rd
Slide 43: Make it happen! Contact
Make it happen! Contact Ursula Querette Head of Investor Relations Telephone +49 89 444 56 3278 ir@scout24.com www.scout24.com 43 Annual General Meeting 2020