Slide 1: Q2 2022 Presentation of the interim report
Q2 2022 Presentation of the interim report Hemnet Group AB ⎸ 21 July 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: Highlights
Highlights Cecilia Beck-Friis, CEO 3
Slide 4: Quarterly highlights
Quarterly highlights Key financials Highlights “Strong growth as both increasing demand for Net sales growth ● Continued successful execution of strategy, value-added services and +26.9% with the sixth consecutive quarterly report coming in over the financial targets price adjustments drive (SEK 269
Slide 5: Business and market update
Business and market update Cecilia Beck-Friis, CEO 5
Slide 6: Publishing of new listings on high levels despite concerns of inflation and higher interest rates
Publishing of new listings on high levels despite concerns of inflation and higher interest rates …With signals that we are entering a buyer’s Q2 listings were up 3.2% year-on-year… market Published listings Listing duration Price expectations (paid published listings on Hemnet) (apartament) 12.4% J
Slide 7: Our robust business model is well positioned for a changing property market
Our robust business model is well positioned for a changing property market Decline in Property prices Interest rates Buyer’s market transaction volumes declining rising Challenge Swedish transaction Increasingly difficult Decreased property Increase cost of volumes decreased for sellers to get the pr
Slide 8: We see strong momentum and pace in product development and launches
We see strong momentum and pace in product development and launches Strategic area Current 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 platf
Slide 9: Consumer product updates
Consumer product updates Consumers New search filters: balcony, Simplifying account creation elevator & ownership type (Test to be launched) 9
Slide 10: Sellers product updates
Sellers product updates Sellers Hemnet Premium Users that buy Hemnet Premium or upgrade within 7 days after publication can republish their listing an unlimited number of times Republishing a listing requires the listing to be removed for Hemnet for 21 days (as per existing rules for republishing) T
Slide 11: Agents & B2B product updates
Agents & B2B product updates Agents & B2B Real estate agents “Find a broker” result Expanded during Q2 to include commercial product that gives list launched during Spring brokers more visibility in result lists for reported sale price 11
Slide 12: Agents & B2B product updates
Agents & B2B product updates Agents & B2B Property developers Previous situation Current situation ● Different publishing rules ● All published single property for single property listings listings treated equally published by property developers vs. agents ● All project units now paid for ● Outdate
Slide 13: Q2 ARPL up 33.9%
Q2 ARPL up 33.9% Q/Q growth +41% +34% +54% +45% ● Continued ARPL growth driven by a mix of (most recent) increased conversion to value-added services and pricing ● Product: Continued focus on improving the value and effect of seller products to property sellers, and finding the right balance in our
Slide 14: Stable headcount as a result of competitive recruitment market and post-pandemic leavers
Stable headcount as a result of competitive recruitment market and post-pandemic leavers ● Our ongoing product initiatives, coupled with our early stage of commercialisation means we are targeting to continue expanding the team ● Despite high activity in talent acquisition, headcount remains unchang
Slide 15: Recruitment of key management roles filled with highly experienced individuals
Recruitment of key management roles filled with highly experienced individuals Jens Melin Peter Frey Anna Kempe Chief Financial Officer (Interim) Chief Technical Officer Chief People & Culture Officer ● Head of Group Accounting & ● 16 years of CTO experience ● 20 years of HR experience Control at Hemnet f
Slide 16: Marketing update
Marketing update Guldhemmet ● Guldhemmet gala held in Stockholm City hall in May 2022, with over 300 guests from the real estate broker and property development industry ● Since inception, the Guldhemmet gala has established itself as the largest award ceremony, acknowledging the hard work and resul
Slide 17: Financial Update
Financial Update Carl Johan Åkesson, CFO 17
Slide 18: Financial highlights Q2 2022
Financial highlights Q2 2022 Net Sales ARPL +27% SEK 269.7m +34% SEK 3,163 Adj. EBITDA Cash conversion +31% SEK 145.3m 103% FCF/Adj. EBITDA Adj. EBITDA margin Leverage +1.7pp 53.9% 0.2x Net debt/Adj. EBITDA 18 Rounded growth numbers
Slide 19: Net sales by customer category
Net sales by customer category Product Result Growth Key drivers Property ● Growth in conversion and positive pricing impact, sellers +37% supported by positive development in listings ● Continued high demand for value added products Real estate and display agents +31% ● Area of accelerated product
Slide 20: 31% growth in Adj. EBITDA driven by consistent growth in ARPL and operating leverage
31% 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 ● Compensation to r
Slide 21: Small reduction in leverage, even after dividend payment and buybacks
Small reduction in leverage, even after dividend payment and buybacks ● Leverage decreased by 0.1x to 0.2x ● Payment of the dividend of SEK -55.6m and share buybacks of SEK -40.3m, whereof SEK -7.5m for the 2022/2025 Share savings program and SEK -32.8m for the SEK 450m share repurchase program ● Ca
Slide 22: Hemnet is targeting a SEK 450 million buyback ahead of next AGM, in addition to the dividend
Hemnet is targeting a SEK 450 million buyback ahead of next AGM, in addition to the dividend ● Hemnet is targeting to buy back shares for a total of SEK 450 million up until the next AGM ● At the end of Q2, Hemnet has distributed a total of SEK 89 million back to shareholders (dividend + buybacks) ●
Slide 23: Strong performance across all three financial targets
Strong performance across all three financial targets 23
Slide 24: Summary
Summary Cecilia Beck-Friis, CEO 24
Slide 25: Quarterly highlights
Quarterly highlights Key financials Highlights “Strong growth as both increasing demand for Net sales growth ● Continued successful execution of strategy, value-added services and +26.9% with the sixth consecutive quarterly report coming in over the financial targets price adjustments drive (SEK 269
Slide 26: Q&A
Q&A 26
Slide 27: IR Contacts
Current situation IR Contacts IR Contacts Hemnet invites analysts, investors and media to participate in the results presentation of the second quarter on 21 June 2022 at 10:00 CET. The Carl Johan Åkesson results will be presented by CEO Cecilia Beck-Friis and CFO Carl Johan Åkesson. The presentatio
Slide 28: 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