Slide 1: Hemnet Group's presentation of the Q4 interim report
Hemnet Group’s presentation of the Q4 interim report 1 February 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
Slide 4: Strong growth in net sales and adjusted EBITDA
Strong growth in net sales and adjusted EBITDA Q4 Highlights: Net sales increased 24.2 percent to SEK 177.3m (142.7) Adjusted EBITDA increased 76.3 percent to SEK 84.6m (48.0), corresponding to a margin of 47.7% (14.1 p.p) Continued operating excellence, leveraging changes to the business model and
Slide 5: Annual results exceeding financial targets, driven by strong customer demand and product changes
Annual results exceeding financial targets, driven by strong customer demand and product changes ● Annual revenue growth of 34% greatly exceeds financial target of 15-20%. Adj. EBITDA margin of 49% in line with medium term margin goal of 45-50% 33.8% Revenue growth ● Strong demand for seller and B2B
Slide 6: We use product improvements, pricing adjustments and purchase funnel updates to drive ARPL growth
We use product improvements, pricing adjustments and purchase funnel updates to drive ARPL growth Fewer, larger pricing adjustments Smaller, iterative pricing adjustments Improved Plus product & agents can recommend products Plus gets Segmented pricing Simplified larger images* model for Plus & Segm
Slide 7: Listing volumes in 2021 driven by exceptional property market
Listing volumes in 2021 driven by exceptional property market +2% ● The number of listings volumes has historically been stable, growing at a CAGR of c. 2% ● 2021 listing volumes are the highest recorded in Hemnet’s history - driven by exceptional interest in the property market ● Our growth strateg
Slide 8: Business Update
Business Update Cecilia Beck-Friis, CEO
Slide 9: Several product updates in Q4 with focus on all three strategic customer groups
Several product updates in Q4 with focus on all three strategic customer groups ● Increased stickiness by improving ● Made it easier for sellers to buy ● Hemnet Business product and recommendations based on Hemnet products through new pricing update previous searches payment methods ● Testing new pr
Slide 10: Product journey looking ahead
Product journey looking ahead Hemnet today Hemnet 2022 ● Launch features that focus on ● Most interactions occur during the buying personalization Consumers or selling process ● Encourage consumers to use Hemnet when they research the market ● Work to increase effect, awareness & ● Value-added servi
Slide 11: Net sales by service category
Net sales by service category Product Q4 2021 vs Q4 2020 Growth Key drivers Listing fee 34% ● Strong growth despite a slight decrease in listings y/y Value-added ● Growing demand and increasing conversion rates, services 56% coupled with product improvements and pricing ● Decline mainly traffic driven
Slide 12: Updated framework for sustainability to be included in next Annual & Sustainability report
Updated framework for sustainability to be included in next Annual & Sustainability report ● As Hemnet grows, sustainability issues are Our sustainability efforts should support our business as becoming an increasingly important part of well as be a force for good in society: our business. ● In 2021
Slide 13: Financial Update
Financial Update Carl Johan Åkesson, CFO 13
Slide 14: Annual revenue growth of 34% and Adj. EBITDA growth of 76%, with margin of 48.8%
Annual revenue growth of 34% and Adj. EBITDA growth of 76%, with margin of 48.8% Q4 2021 (SEKm) Full Year 2021 (SEKm) Adj. EBITDA%: 34% 48% Adj. EBITDA%: 37% 49% Revenue Adj. EBITDA 14 Note: Rounded numbers from Hemnet Q4 2021 report
Slide 15: Financial highlights Q4
Financial highlights Q4 Net Sales Adj. EBITDA margin +24% SEK 177.3m +14pp 47.7% Adj. EBITDA Operating cash flow +76% SEK 84.6m 61.6Mkr SEK 94.5m cash & cash eqv. ARPL Leverage +45% SEK 3,029 -0.3x 0.5x (vs Q3-21) 15 Rounded growth numbers
Slide 16: Full year adjusted EBITDA growth demonstrates Hemnet's operating leverage
Full year adjusted EBITDA growth demonstrates Hemnet’s operating leverage ● Hemnet demonstrates strong operating leverage with 24% revenue growth generating 76% growth in adjusted EBITDA ● Revenue growth primarily driven by listing revenue and revenue from value-added services ● Compensation to real
Slide 17: Net sales by customer category
Net sales by customer category Product Q4 2021 vs Q4 2020 Growth Key drivers Property ● Growth in conversion and positive pricing impact, sellers 43% despite a decline in listings y/y ● Continued high demand for products and display Real estate agents 16% ● Hemnet Business product and pricing update
Slide 18: We continue to decrease leverage
We continue to decrease leverage ● Reduced draw-down on the revolving credit facility of SEK 85m is the most substantial driver for cash ● Income taxes follows growth in profit before tax ● The change in working capital was positive SEK 8.3m (15.8), which is a normal Net change in cash: SEK -18m sea
Slide 19: Proposal for dividend and share buy-backs to be presented at annual general meeting
Proposal for dividend and share buy-backs to be presented at annual general meeting ● Financial target to distribute a minimum of 1/3 of net income Dividend ● Board to propose dividend of SEK 0.55 per share to AGM ● Seeking mandate for up to 10% of Share buy-back outstanding shares to be scheme repu
Slide 20: Financial targets
Financial targets Growth Profitability Leverage 15-20% 45-50% <2.0x Annual Net sales growth Medium term Adjusted EBITDA Net Debt to Adjusted EBITDA margin Accumulated 12 months (2018-2021) 40% 35% 30% 25% 20% 15% 10% 5% 0% 55% 50% 45% 40% 35% 30% 25% 0 + 2018 2019 2020 2021 2018 =62019S- 2020 2021 2
Slide 21: Summary
Summary Cecilia Beck-Friis, CEO
Slide 22: Strong growth in net sales and adjusted EBITDA
Strong growth in net sales and adjusted EBITDA Q4 Highlights: Net sales increased 24.2 percent to SEK 177.3m (142.7) Adjusted EBITDA increased 76.3 percent to SEK 84.6m (48.0), corresponding to a margin of 47.7% (14.1 p.p) Continued operating excellence, leveraging changes to the business model and
Slide 23: Q&A
Q&A
Slide 24: Financial Calendar IR Contacts
Financial Calendar IR Contacts 25 March 2022 Annual report 2021 Carl Johan Åkesson CFO Interim financial report +46 708 30 70 57 28 April 2022 Q1 2022 cj.akesson@hemnet.se Annual General 29 April 2022 Meeting 2022 Nick Lundvall Interim financial report 21 July 2022 Q2 2022 IR Manager +46 761 45 21 78
Slide 25: 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