Hemnet Group Ab · OMXSTO:HEM
Hemnet Group Ab — Shareholder Meeting (April 2023)
23 slides from Hemnet Group Ab's shareholder meeting presentation, Apr 27, 2023
Slide 1: Welcome to the Hemnet Group AB Annual General Meeting
Welcome to the Hemnet Group AB (publ) Annual General Meeting 27 April 2023 Hemnet Group AB (publ)｜Sveavägen 9 ｜111 57｜Stockholm｜Sweden
Slide 2: Cecilia Beck-Friis, CEO
Cecilia Beck-Friis CEO 2
Slide 3: Hemnet is Sweden's #1 destination for housing
Hemnet is Sweden’s #1 destination for housing 1. 1 2. 2 3. 3 4. 4 5. 5 0:30 c. 90% # 5 30 min 19x Share of sold Strongest media Time that each More clicks on properties listed on brand image in Swede spends on listings than #2 Hemnet Sweden Hemnet monthly portal Source: Hemnet, SCB (2021) Source: Yo
Slide 4: Our vision is to be… By becoming…
Our vision is to be… The key to your property journey. We increase efficiency, transparency and mobility on the housing market By becoming… The destination for all things related to homes 4
Slide 5: Our future growth is supported by a three-year strategy, consisting of three pillars
Our future growth is supported by a three-year strategy, consisting of three pillars Engage consumers Grow sellers Transform B2B Increase engagement and Optimize seller revenues Broaden our portfolio and shift strengthen loyalty across the through a balance of product, growth to Hemnet–unique proper
Slide 6: Summary of 2022 results
Summary of 2022 results @ Hemnet
Slide 7: Continued execution on strategy despite challenging market in second half of 2022
Continued execution on strategy despite challenging market in second half of 2022 Net sales Adj. EBITDA ARPL +22% 5-year CAGR +26% +33% 5-year CAGR Target: Hemnet aims to achieve annual net sales Target: Hemnet aims to achieve an adjusted EBITDA No target for ARPL growth of 15-20 percent margin of 4
Slide 8: 2022 ARPL growth of 33% as we continue to execute on our strategy
2022 ARPL growth of 33% as we continue to execute on our strategy for property sellers Y/Y growth +41% +34% +29% +34% ARPL growth driven by increasing demand (most recent) and pricing ● Product: Inclusion of renewal in Premium yielding results. Ongoing improvements in packaging and payment flow. ● Up
Slide 9: 26% growth in adj. EBITDA as we continue investing in the business
26% growth in adj. EBITDA as we continue investing in the business while enjoying operating leverage ● Administration and commission expenses to real estate agents increased in line with increasing revenue from listing related services ● Other external expenses increase mainly driven by higher consu
Slide 10: Our growth is supported by product development - key product launches for 2022
Our growth is supported by product development - key product launches for 2022 Consumers Property sellers Real estate agents Launched property valuation and Renewal included in Hemnet Launched broker search flow and “My Home” Premium first commercialisation product 10
Slide 11: We continue to take steps within our sustainability framework
We continue to take steps within in our sustainability framework Being one of Sweden’s ● Excellent NPS of 55 best workplaces ● Even gender distribution ● AllBright prize for diversity and inclusion in 2022, and recognized by Universum as one of the best employers in Sweden in 2022 Combating climate
Slide 12: Capital return & Financial targets
Capital return & Financial targets 12
Slide 13: A total of SEK 449m returned through buybacks, and SEK 56m through dividends
A total of SEK 449m returned through buybacks, and SEK 56m through dividends in 2022/2023 ● A total of 3,057,549 shares were repurchased ● Average price per share for the buybacks was SEK 146.9 ● SEK 449.2m spent under the buyback program ahead of the AGM in 2023 ● A total of 2,780,428 shares will b
Slide 14: In Q4 2022 we introduced a new long-term profitability target, reiterated other targets
In Q4 2022 we introduced a new long-term profitability target, reiterated other targets Net sales Profitability Leverage Dividend 15-20% 45-50% >55% <2.0x 1/3 Reiterated target Long-term adj. Minimum dividend as Annual growth for 2023 adj. Net debt to adj. EBITDA EBITDA margin portion of net income*
Slide 15: Q1 Summary
Q1 Summary Cecilia Beck-Friis, CEO 15
Slide 16: Q1 2023 Summary
Q1 2023 Summary Key financials Highlights Net sales growth ● Revenues from property sellers increased 11.7% despite a sharp 19.3% decline in newly 5.8% published listings due to macroeconomic factors (SEK 190.1m) ● ARPL increased 38.2 % to SEK 3,706 (2,681), “Strong development for Adj. EBITDA-margin
Slide 17: Interest rates & cost of living create uncertainty and hesitance in buyers and sellers
Interest rates & cost of living create uncertainty and hesitance in buyers and sellers Interest rates Affordability ● When do I know how much price ● Where will rates peak, and when will increases will affect my cost of living they stabilize? ● How will that affect my affordability? Listings and tra
Slide 18: Despite quarterly fluctuations, listing volumes are stable on annual basis
Despite quarterly fluctuations, the need to live means listing volumes are stable on annual basis Published listings Published listings (Year-on-year change in volumes) Second amortisation (Annual) requirement First amortisation requirement Covid-19 driven property interest boom Inflation & increase
Slide 19: We see a number of potential catalysts that could impact the market going forward
We see a number of potential catalysts that could impact the market going forward Factor Potential impact Financials institutions expecting rates to peak Decreased uncertainty around affordability and during 2023 higher willingness to transact Significant number of fixed mortgages up for An increase
Slide 20: Through investments in product development and growth, we are ready when the market turns
Through investments in product development and growth, we are ready when the market turns Consumers Property sellers Real estate agents ● Improving the agent search flow ● Maintaining Hemnet’s position as ● Product updates and pricing launched in 2022 the go to property portal adjustments carry over
Slide 21: Thank you!
Thank you! 21
Slide 22: IR Contacts
Financial calendar IR Contacts IR Contacts 19 Jul 2023 Interim report Q2 2023 Jens Melin 25 Oct 2023 Interim report Q3 2023 Interim CFO +46 709 99 33 59 jens.melin@hemnet.se Nick Lundvall IR Manager +46 761 45 21 78 nick.lundvall@hemnet.se www.hemnetgroup.se 22
Slide 23: 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