Slide 1: Q1 2022 Presentation of the interim report
Q1 2022 Presentation of the interim report Hemnet Group AB ⎸ 28 April 2022 Hemnet Group AB (publ) ｜Klarabergsgatan 60 ｜111 21｜Stockholm｜Sweden
Slide 2: Presenting today
Presenting today Cecilia Beck-Friis Carl Johan Åkesson CEO CFO 2 Please submit any questions to: ir@hemnet.se
Slide 3: 1 year as listed company
1 year as listed company 1 yeard as a liste company! 3
Slide 4: Highlights
Highlights Cecilia Beck-Friis, CEO 4
Slide 5: Quarterly highlights - Q1 2022
Quarterly highlights - Q1 2022 Key financials Highlights “Continued strong growth in ARPL as a result of Net sales growth ● Stable property market, with number of listings increased demand for +26.0% ● up 3.9% in Q1 Adjusted EBITDA-margin increased 7.5 p.p to value-added services and (SEK 179.6m) 47
Slide 6: Q1 2022 ARPL up 41.3%
Q1 2022 ARPL up 41.3% ● Continued ARPL growth driven by a mix of increased conversion to value-added services and pricing ● Product: We are still early in the product and pricing journey, with continued focus on improving the value and effect of seller products to property sellers ● Conversion: Real
Slide 7: Hemnet is the #1 property portal in Sweden
Hemnet is the #1 property portal in Sweden 1 Virtually every property seller in 97% Sweden knows of Hemnet The vast majority (84%) of sellers prefer Hemnet as their portal of #5 2 3 Awareness among home choice. #2, with 14% of votes is Strongest brands in the 4 Blocket Bostad, which no longer has se
Slide 8: Business Update
Business Update Cecilia Beck-Friis, CEO 8
Slide 9: We continue to execute on our company strategy, aimed at our three key customer groups
We continue to execute on our company strategy, aimed at our three key customer groups 2022 Focus ● Launch features that focus on personalization to create a stronger Consumers relationship with the consumer ● Encourage consumers to use Hemnet when they research the market ● Leverage the strong plat
Slide 10: In 2022 we have accelerate product development in the B2B category
In 2022 we have accelerate product development in the B2B category ● Launch of a new section that highlights real estate agents in an area, creating new opportunities for home sellers and real estate agents to find each other on Hemnet ● We want to be one of the most important business partners to t
Slide 11: Recent product launches focused on making Hemnet a greater part of the property journey
Recent product launches focused on making Hemnet a greater part of the property journey Prepare the property Promote the Research & decision Find broker for sale property 11
Slide 12: Hemnet Business Pro for Banks was launched in Q1 to give paying banks better exposure
Hemnet Business Pro for Banks was launched in Q1 to give paying banks better exposure New features Improved overview of Banks is a key strategic housing costs customer group for Hemnet. Hemnet remains the only Swedish portal where Subscribing banks have extra exposure consumers can compare mortgages
Slide 13: Recruitment and marketing update
Recruitment and marketing update ● Recruitment, especially development roles, is a key focus area for delivering on our growth plan ● Competition for talent is high, somewhat mitigated by our active approach and attraction as one of Sweden’s best Recruitment employers ● Headcount was 121 FTE at the
Slide 14: Financial Update
Financial Update Carl Johan Åkesson, CFO 14
Slide 15: Financial highlights Q1 2022
Financial highlights Q1 2022 Net Sales Adj. EBITDA margin +26% SEK 179.6m +7.5pp 47.6% Adj. EBITDA Cash conversion +49% SEK 85.5m 102% FCF/Adj. EBITDA ARPL Leverage +41% SEK 2 681 0.3x Net debt/Adj. EBITDA 15 Rounded growth numbers
Slide 16: Net sales by customer category
Net sales by customer category Product Result Growth Key drivers Property ● Growth in conversion and positive pricing impact, sellers +47% supported by positive development in listings Real estate ● Continued high demand for products and display agents +15% ● Area of accelerated product development
Slide 17: Net sales per service type now two instead of three categories
Net sales per service type now two instead of three categories to clarify the building blocks Listing services revenue (Q1 2021 vs Q1 2022) Other services revenue (Q1 2021 vs Q1 2022) ● All other revenue ● Revenue from listings and value-added services related to the listing ● Includes value-added s
Slide 18: 49.5% growth in Adj. EBITDA driven by consistent growth in ARPL and operating leverage
49.5% growth in Adj. EBITDA driven by consistent growth in ARPL and operating leverage ● Continued strong growth in net sales, as a result of increasing average revenue per listing (ARPL) driven by strong growth in the sale of value-added services for seller’s and price adjustments ● Small reduction
Slide 19: We continue to decrease leverage
We continue to decrease leverage ● Strong cash conversion of 102% ● Cash flow from operating activities of SEK 72.7m ● Voluntary repayments of bank loans of SEK 65m ● SEK 96.3m cash on the balance sheet Chart shows historical development of the Group’s net debt and net debt in relation to rolling tw
Slide 20: Hemnet will distribute excess cash to shareholders
Hemnet will distribute excess cash to shareholders 102%+ 0.55kr 10% Cash conversion, Proposed share buyback Proposed ordinary measured as using excess cash and dividend per share FCF / EBITDA (in line with dividend target) balance sheet (cash conversion LTM) 20
Slide 21: Financial targets
Financial targets Growth 15-20% 2018 «62019 2020 2021s LTMQ1 Hemnet aims to achieve annual net sales growth of 15-20 percent. 21 Profitability 45-50% 2018 2019 2020 2021 ~UTMAQI Hemnet aims to achieve an adjusted EBITDA margin of 45-50 percent in the medium term. Leverage <2.0x 34x x x 1 — a Ge co 2
Slide 22: Summary
Summary Cecilia Beck-Friis, CEO 22
Slide 23: Quarterly highlights - Q1 2022
Quarterly highlights - Q1 2022 Key financials Highlights “Continued strong growth in ARPL as a result of Net sales growth ● Stable property market, with number of listings increased demand for +26.0% ● up 3.9% in Q1 Adjusted EBITDA-margin increased 7.5 p.p to value-added services and (SEK 179.6m) 47
Slide 24: Q&A
Q&A 24
Slide 25: Financial Calendar IR Contacts
Financial Calendar IR Contacts Interim financial report Carl Johan Åkesson 21 July 2022 Q2 2022 CFO Interim financial report +46 708 30 70 57 20 October 2022 Q3 2022 cj.akesson@hemnet.se Nick Lundvall IR Manager +46 761 45 21 78 nick.lundvall@hemnet.se 25
Slide 26: Disclaimer
Disclaimer This presentation may contain forward-looking information and statements with respect to the financial condition, results of operation and business of Hemnet Group AB (publ) (the "Company"). Such forward-looking information and statements are based on current expectations, estimates and pr