Slide 1: Make it happen! Full-year results 2019
Make it happen! Full-year results 2019 Analyst call 26 March 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: Table of contents
Table of contents 1. Current situation and Scout24 positioning 2. Strong 2019 financials and capital return plan 3. Navigating a highly uncertain environment 4. Backup 3 Full-year 2019 results presentation
Slide 4: 1. The current situation and Scout24 positioning
1. The current situation and Scout24 positioning 4 Full-year 2019 results presentation
Slide 5: We have made important strategic decisions in 2019
We have made important strategic decisions in 2019 … Focus on Largest product innovation core business areas push in the history of AutoScout24 & Scout24 ImmoScout24 This is a call-out. Use it to emphasize specific content. Share buyback Strategic review of program AutoScout24 completed with sale to
Slide 6: … and delivered record results
… and delivered record results New Scout24 – IS24 segment and ImmoScout24-related CS activities €349.8m 62.2% €676 €1,761 +9.9% +0.9pp +6.6% +12.4% revenue from continuing ordinary operating monthly ARPU with monthly ARPU with operations EBITDA margin residential real estate business real estate (IS
Slide 7: We had a strong start in the first two months of 2020
We had a strong start in the first two months of 2020 YTD / end of Feb. 2020 vs. end of Dec. 2019 48% take rate to higher membership tiers Residential real estate partners (contractual) 15,106 +0.9% (as of end of period, number) 50% Residential real estate partner ARPU* (€/month) €715 +5.8% growth o
Slide 8: With Corona, we are monitoring developments very closely
With Corona, we are Home owners monitoring ▪ Deferral of sales / rent developments Agents transactions very closely – ▪ Slowdown of appointments ▪ Decreasing home owner leads ▪ Increased standing times initiated ▪ Closure of real estate offices / ▪ Decreasing finance leads immediate branches / notar
Slide 9: Our long-term strategy is clear: drive the real estate ecosystem in Germany
Our long-term strategy is clear: we will further drive the real estate ecosystem in Germany We expand our No. 1 We develop innovative, We collect more data, market position smart products and and increase market Germany expand our TAM transparency We build a comprehensive We drive ARPU through new W
Slide 10: 2. Strong 2019 financials and capital return plan
2. Strong 2019 financials and capital return plan 10 Full-year 2019 results presentation
Slide 11: 2019 was an eventful year with record results
2019 was an eventful year with record results Financial Highlights – continuing and discontinued operations External Revenue ooEBITDA ooEBITDA Margin Cash Contribution 2019 2018 +/- 2019 2018 +/- 2019 2018 +/- 2019 2018 +/- New Scout24 Group €349.7m €318.2m +9.9% €209.3m €188.7m +10.9% 60% 59% +1 Pp
Slide 12: We drove positive development of agent numbers and ARPU
We drove positive development of agent numbers and ARPU FY 2019 FY 2018 Change Residential real estate partners (contractual) 14,967 14,745 +1.5% (as of end of period, number) Residential real estate partner ARPU (EUR/month) 676 634 +6.6% Business real estate partners (contractual) 2,774 2,815 -1.5%
Slide 13: We delivered a solid performance within the new segment structure
We delivered a solid performance – also within the new segment structure Revenue of the continued operations up by 10% 300 + 11.0% 244.9 62.2 % 250 2019 220.7 ooEBITDA margin 200 (over all three new IS24 segments) € million 150 + 10.3% 100 63.1 69.6 + 8.9% 61.3 % 50 32.1* 35.0 2018 ooEBITDA margin (
Slide 14: We achieved a 60% ooEBITDA margin
We achieved a 60% ooEBITDA margin … Continued operations - ordinary operating cost (€m) FY 2019 FY 2018 +/- Marketing costs 23.4% higher due to increased online Revenues 349.7 318.2 +9.9% marketing for Realtor Lead Engine Own work capitalised 14.0 11.2 +24.7% IT costs up 20.1% due to Other operating
Slide 15: … and came out with an adjusted EPS of 1.77€
… and came out with an adjusted EPS of 1.77€ Strong increase in non-operating Below EBITDA items items mainly due to share-price performance and resulting share- based remuneration (€29.0m in 2019) (€m) FY 2019 FY 2018 and reorganization. Ordinary operating EBITDA 209.3 188.7 Reported EBITDA flat. N
Slide 16: We propose a regular dividend of €0.90 per share
We propose a regular dividend of €0.90 per share … Upper range of the communicated payout-ratio 2019 2018 Adjusted net income €189.6m €169.9m Adjusted earnings per share1 €1.77 €1.58 Sufficient cash Dividend per share2 €0.90 €0.64 available for dividend Dividend €94.3m €68.9m pay-out in 2020 Pay-out
Slide 17: Plan to return the AS24 sale proceeds to our shareholders
…. which is part of our plan to return the AS24 sale proceeds to our shareholders A combination of share buyback (SBB), dividend and capital reduction ensures efficient return March 2021 Approval of March/April 2020 2020 financial 18 June 2020 Closing AS24 statements AGM Inflow of €2.8bn Q2 Q3 Q4 Q1
Slide 18: 3. Navigating a highly uncertain environment
3. Navigating a highly uncertain environment 18 Full-year 2019 results presentation
Slide 19: We are supporting our customers in the Corona-crisis
We are supporting our customers in the Corona-crisis … Immediate action programme as of March 20th Immediate-action program Measures Financial impact Liquidity Plus Deferred payment April cash impact Survive All professional customers are granted a of approx. €20m nine-month extension of payment for
Slide 20: Assessing the effects of the market slowdown on 2020 operations
… while assessing the effects of the market slowdown on our own 2020 operations Approx. revenue distribution ~60% of our revenues are contracted with professional customers (based on 2019 actuals) (membership / project based revenues with agents, banks and developers) Media Consumer Services 4% • ~7
Slide 21: We remain at the side of our customers and clients
We remain at the side of our customers and clients and want to find solutions in good and bad times Our immediate priority is the safety of our customers, consumers and employees We have moved quickly and firmly with our Survive, Prevent and Accelerate initiative to help our customers during this ch
Slide 22: 4. Backup
4. BACKUP 22 Full-year 2019 results presentation
Slide 23: New segment structure in more detail
New segment structure in more detail Continued operations by revenue lines Segment Including External Revenue (€m) Q4 2019 Q4 2018 +/- 2019 2018 +/- Residential Real Estate 62.0 56.8 +9.3% 244.9 220.7 +11.0% Residential Agents, Property Managers, Real Estate Agents Prof. PPA, Finance listings, Mortg
Slide 24: New Residential Real Estate segment
New Residential Real Estate segment Reconciliation from former revenue lines to new revenue lines 24 Full-year 2019 results presentation
Slide 25: New Business Real Estate segment
New Business Real Estate segment Reconciliation from former revenue lines to new revenue lines 25 Full-year 2019 results presentation
Slide 26: New 3rd Party Media & Others segment
New 3rd Party Media & Others segment Reconciliation from former revenue lines to new revenue lines 26 Full-year 2019 results presentation
Slide 27: Financing structure
Financing structure €766m 2.45 : 1 Net Debt leverage ratio (net debt : LTM ooEBITDA) Debt structure Loan volume Margin (€m) Term Loan 300 1.15% Debt RCF I (drawn) 20 0.85% RCF I (undrawn) 180 RCF II (drawn) 315 0.80% Cash 59 -24 69 66 RCF II (undrawn) 185 34 93 34 103 -37 Schuldschein 197 27 Full-ye
Slide 28: Equity Capital
Equity Capital Scout AG – HGB Balance Sheet 1. Commercial law: Available profit Financial Statements according to HGB (€m) Equity as of Equity as of based on HGB (Ausschüttbarer Scout24 AG 31/12/2019 31/12/2018 Gewinn) €887.2m is the balance sheet profit according to HGB as of 31 Dec. 2019, which is
Slide 29: Capital Return Q&A: Why does it take so long to return cash?
Capital Return Q&A Process 1. Why does it take • Our share buyback will occur as soon as reasonably practical thereafter and will best cope with current market volatilities when continuing as long as possible prior to the AGM 2021. so long to return • It will be complemented by a dividend, in line w
Slide 30: Capital Return Q&A: Did you consider a shortened financial year?
Capital Return Q&A Process 2. Did you • Such measure would presuppose that tax authorities, the AGM 2020 and the involved commercial registers approve the shortening of the fiscal year(s) of Scout24AG and/or Scout24 Beteiligungs SE, which cannot be reliably foreseen. consider a • The measure could b
Slide 31: Capital Return Q&A: Why did you not negotiate with the financial authorities?
Capital Return Q&A Process 3. Why did you not Re shortened financial year: • A shortened financial year would only make sense in combination with an negotiate with the additional share buyback in FY 2020 post AGM 2020. • Given all aforementioned uncertainties and litigation risks, there is a low fin
Slide 32: Capital Return Q&A: How do current market conditions affect the path?
Capital Return Q&A Process 4. How do the • Scout24 has invested a lot of thoughts how to quickly, reliably and efficiently, also tax efficiently, distribute the cash proceeds from the AutoScout24 sale. current (financial) • We started to consider potential ways to distribute the proceeds from the sa
Slide 33: Capital Return Q&A: Why only a dividend of €94m?
Capital Return Q&A Dividend 5. Why do you • The proposed dividend amount ranges at the upper end of our dividend policy of 30%-50% payout of adjusted net income. only pay a • Any higher dividend would reduce the quantum of proposed share buybacks. • Share buybacks are typically preferred by most of
Slide 34: Capital Return Q&A: Why not first pay the tax-free dividend?
Capital Return Q&A Dividend 6. Why don‘t you • According to our in-depth analysis the combination of share buybacks and a dividend payment in line with our dividend policy is in the best interest of the company and all its stakeholders. first pay the tax- • This analysis took into account the curren
Slide 35: Capital Return Q&A: Why have you not repurchased shares?
Capital Return Q&A Share buybacks 7. Why have you • Scout24 has invested a lot of thoughts how to quickly, reliably and efficiently, also tax efficiently, distribute the cash proceeds from the AutoScout24 sale which is scheduled for end of March 2020 to its shareholders. not repurchased • Since we h
Slide 36: Capital Return Q&A: How do you buy large amounts via open market?
Capital Return Q&A Share buybacks 8. How do you • In the interest of the company and its shareholders the buyback will be implemented in accordance with safe harbour provisions under the Market Abuse Regulation to ensure the compliance of the company with capital ensure to buy market law. large amou
Slide 37: Capital Return Q&A: Why not offer one large tender?
Capital Return Q&A Share buybacks 9. Why don‘t you • We want our shareholders to benefit as soon as possible from the successful sale while making use of our large tax contribution account in FY 2020. offer one large • This is feasible by way of a share buyback based on the existing authorization wh
Slide 38: Capital Return Q&A: Why limited to a 10% premium?
Capital Return Q&A Share buybacks 10. Why are you • The authorization by the AGM for the Management Board for a share buyback limits the premium to such amount. limited to a 10% • The reason for this is that there is high legal uncertainty whether or not higher premiums would be permissible under Ge
Slide 39: Make it happen!
Make it happen! Ursula Querette Head of Investor Relations Telephone +49 89 444 56 3278 Fax +49 89 444 56 193278 ir@scout24.com www.scout24.com 39 Full-year 2019 results presentation