Baltic Classifieds Group Plc · LSE:BCG
Baltic Classifieds — H1 2023 Earnings Presentation
31 slides from Baltic Classifieds's earnings presentation, December 2022
Slide 1: Half year results presentation
Half year results presentation Six months ended 31 October 2022
Slide 2: Strategic overview
Strategic overview • Strong double digit revenue growth year-on-year in all four business units • Our biggest portal Autoplius.lt grew its leadership1 versus closest competitor from 4.4 to 5.6 times. Each of our main sites are from 5 to 28 times bigger than the closest competitor • C2C: successfully
Slide 3: Financial highlights
Financial highlights • Revenue grew 19% to €29.8m (H1 2022: €25.0m) driven by Autos (+19%), Real Estate (+18%), +19% Jobs & Services (+27%) and Generalist (+13%) +16% • EBITDA1 up 16% to €22.8m (H1 2022 adjusted EBITDA2: €19.6m) 77% • EBITDA margin1 at 77% (H1 2022 adjusted EBITDA margin2: 78%) 5x •
Slide 4: Operational highlights
Operational highlights 11 times C2C listings: • Auto : +17% 1 B2C customers: 132 FTEs • Auto: +3% (+5 since 2022) per month each • Real Estate: +8% • Real Estate: +1% resident in the Baltics • Services2: +6% • Jobs4:(4)% vs H122 women 53% visits BCG sites • Generalist3: +3% (+57% vs H1 2021) men 47%
Slide 5: Financials
BALTIC CLASSIFIEDS GROUP Financials
Slide 6: Robust revenue growth in consistently diversified revenue streams
Robust revenue growth in consistently diversified revenue streams: +19% for the Group vs planned +15% Revenue (million €) Diversified revenue streams Six months ended 31 October 2022 is shown as H1 2023 19% H1 2023 Revenue split 36% Auto Auto H1 2022 – H1 2023 YoY Growth Real Estate +19% 20% Jobs &
Slide 7: Resilient in a time of macroeconomic uncertainty
Resilient in a time of macroeconomic uncertainty Revenue (million €) 6.0 2022 Russian invasion of Ukraine 5.0 1st wave of Covid-19 • The Baltic region was under various COVID-19 related restrictions during FY 2021 and 2022 (until end of FY 2022 - 4.0 April 2022) • The war in Ukraine started in the m
Slide 8: Adjusted operating costs under control as listed company costs materialise
Adjusted operating costs under control as expected listed company costs materialise Adjusted operating costs (million €) People costs: Six months ended 31 October 2022 is shown as H1 2023 • Our team grew from 127 FTEs to 132 FTEs as 5 GetaPro employees joined as part of the acquisition PSP and board
Slide 9: Highest ever EBITDA with 77% margin
Highest ever EBITDA with 77% margin There are no adjustments to EBITDA in H1 2023 EBITDA (million €)1 Net cash inflow from operating activities (million €) Six months ended 31 October 2022 is shown as H1 2023 Six months ended 31 October 2022 is shown as H1 2023 EBITDA margin2: EBITDA margin2: Cash c
Slide 10: Adjusted operating profit is tracking closely to our EBITDA
Adjusted operating profit is tracking closely to our EBITDA IFRS Adjusted IFRS Adjusted IFRS Adjusted Measures Measures Measures Measures Measures Measures H1 2023 H1 2023 H1 2022 H1 2022 change change (€ millions) (€ millions) (€ millions) (€ millions) Amortisation of intangibles arising from acqui
Slide 11: Reduced net debt and leverage
Reduced net debt and leverage Net debt1 bridge (million €) Six months ended 31 October 2022 is shown as H1 2023 1.7x2 1.4x2 At the beginning of H1 2023: 66.4 • Loan of €84 million 2.2 57.4 • Leverage of 1.7x 2.8 0.6 7.0 During the H1 2023: -21.6 • Voluntarily repaid €7 million At the end of H1 2023:
Slide 12: Capital allocation priorities remain unchanged
Capital allocation priorities remain unchanged Debt repayment and M&A Dividends share buybacks • We will continue to assess value- • We intend to return 1/3 of • As long as our leverage is below creating opportunities Adjusted Net Income1 each year 2.0x, with no further target, we via dividend inten
Slide 13: Strategic Progress
BALTIC CLASSIFIEDS GROUP
Slide 14: Auto revenue up 19% through improved yield and rising transaction values
Auto revenue up 19% through improved yield and rising transaction values Average auto price and transactions1 C2C KPIs YoY Growth YoY Growth 21.6 263 265 259 18.7 +1% (2)% 12.9 +44% +15% 10.7 +24% +22% 28.5 (24)% +17% 8.8 25.4 7.1 21.6 H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2023 Transactions (th
Slide 15: Real Estate revenue up 18% through improved yield and rising transaction values
Real Estate revenue up 18% through improved yield and rising transaction values Average apartment price1 and transactions C2C KPIs 149 YoY Growth 23.3 YoY Growth 122 120 19.5 +22% 15.4 (19)% +27% +20% 1.8 2.2 +9% +17% 15.2 15.6 16.7 +2% +8% 1.7 H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2023 Transac
Slide 16: Jobs & Services revenue up 27%
Jobs & Services revenue up 27% through improved yield, more intense use of VAS and significant growth of Services Monthly average gross wage1 and average C2C KPIs: Services unemployment rate2 YoY Growth 21.0 YoY Growth 1.7 1.5 1.4 +11% +14% +37% +113% 9.9 7.2 7.8 7.5 (9)% +6% 5.8 6.1 5.9 5.6 H1 2021
Slide 17: Generalist revenue up 13%
Generalist revenue up 13% through growing number of listings, yield improvement and a value-based pricing C2C KPIs: Skelbiu Lead vs closest competitor 6.6 YoY Growth 5.7 Relative Market Share1 vs. Nearest Competitor 5.3 +8% +15% FY 2021 FY 2022 H1 2023 +3% +3% 23.6x 19.7x 18.4x Lithuania: Skelbiu2 8
Slide 18: Product developments in H1 2023
Product developments in H1 2023 Autoplius.lt B2C packages Aruodas.lt B2C packages • Autoplius.lt introduced 4 packages for dealers to replace • Aruodas.lt updated existing B2C packages, introduced the existing 2, providing customers with more choice on a new premium package (Platinum) and the servic
Slide 19: Product developments in H1 2023
Product developments in H1 2023 CVbankas.lt estimation tool Skelbiu.lt value based pricing • Skelbiu.lt implemented value-based C2C pricing in the automotive and real estate categories and upgraded the • CVbankas.lt introduced a salary estimation tool that moderation tool to increase content quality
Slide 20: Outlook
BALTIC CLASSIFIEDS GROUP
Slide 21: Our growth runway is significant
Our growth runway is significant The Core (C2C / B2C) Opportunities Targeted Product Acquisitions Development Development (Including Listing of Ancillary Promotions) Products Pricing Actions Underpinned by Baltic Economic Strength Driving Growth in Transaction Volumes and Values Public sector debt,
Slide 22: Outlook
Outlook • For the aggregate of the Auto’s, Real Estate and Generalist business units, the Board is comfortable maintaining guidance of 15% revenue growth for the second half of the year. This builds on the out-performance of the first half of the year for these business units. • For Jobs and Service
Slide 23: Appendices
BALTIC CLASSIFIEDS GROUP
Slide 24: KPIs and revenue by business line
KPIs and revenue by business line Auto H1 2023 H1 2022 Change, % B2C - Number of Dealers 3,577 3,486 3% B2C - Monthly ARPU (€)1 207 169 22% C2C - Number of Active Ads2 25,379 21,615 17% C2C - Monthly Revenue per Ad (€)2 22 19 15% Total Auto revenue, € million 10.7 9.0 19% Real Estate B2C - Number of
Slide 25: Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of profit or loss and other comprehensive income H1 2023 H1 2022 FY 2022 (€ millions) (€ millions) (€ millions) Revenue 29.8 25.0 51.0 Other income 0.0 0.0 0.0 Expenses (15.5) (22.6) (37.3) Operating profit 14.3 2.4 13.6 Finance income 0.0 0.1 0.1 Finance expenses (1.1) (10.1)
Slide 26: Consolidated statement of financial position
Consolidated statement of financial position 31 October 2022 31 April 2022 30 April 2022 (€ millions) (€ millions) € millions) Assets Property, plant and equipment 0.5 0.3 0.5 Intangible assets and goodwill 393.9 408.7 400.5 Right-of-use assets 0.3 0.6 0.5 Other non-current receivables 0.0 - - Non-c
Slide 27: Consolidated statement of cash flows
Consolidated statement of cash flows H1 2023 H1 2022 FY 2022 (€ millions) (€ millions) (€ millions) Cash flows from operating activities Profit (loss) for the period 11.5 (7.6) 2.4 Adjustments for: Depreciation and amortization 8.5 8.4 16.9 Amortization of up-front fee and borrowing costs 0.2 5.4 5.
Slide 28: Consolidated statement of cash flows (cont.)
Consolidated statement of cash flows (cont.) H1 2023 H1 2022 FY 2022 (€ millions) (€ millions) (€ millions) Cash flows from investing activities Acquisition of intangible assets and property, plant and equipment (0.2) (0.2) (0.4) Acquisition of property, plant and equipment (1.6) (0.0) - Net cash us
Slide 29: We are the clear leader
We are the clear leader Lead over closest competitor Go-to destination for the public Relative Market Share1 vs. Nearest Competitor, H1 2023 Monthly Visits per Capita9, calendar year 2020 Lithuania Estonia Latvia 8.4 c.6x2 c.29x3 6.5 c.0.7x5 c.27x4 c.17x4 #1 in Latvia is generalist 4 portal SS.lv Ge
Slide 30: Monetisation journey as presented at the time of IPO
Monetisation journey as presented at the time of IPO C2C B2C B2C Take Rates3, calendar year 2019 Effective Cost of C2C Listing as a % of Underlying Car Value 0.6-1.2% 5-6% 4-5% 1-3% 0.5-0.6% 0.4-0.6% 0.4-0.6% 0.4-0.6% ~0.4% Baltics4 B2C Take Rates3, calendar year 2019 7-9% Baltics1 3-5% 2-3% Effecti
Slide 31: Thank you
BALTIC Q&A? CLASSIFIEDS GROUP Thank you
Baltic Classifieds Group — H1 2023 Earnings Presentation on 6ix