Scout24 Se · XETR:G24
Scout24 — Investor Day (December 2021)
55 slides from Scout24's investor day presentation, Dec 2, 2021
Slide 1: Moving to the next level – CMD 2021
Moving to the next level CMD 2021 2 December 2021 | © Scout24 Investor Relations
Slide 2: Disclaimer
Disclaimer This document has been issued by Scout24 SE (the “Company” and, together with its direct and This applies specifically to further potential effects of the Covid-19 Pandemic, which cannot be indirect subsidiaries, the "Group") and does not constitute or form part of and should not be relia
Slide 3: Agenda
Agenda 14:00 Introduction Ursula Querette, Head of IR 14:10 Next level operating model Tobias Hartmann, CEO 14:40 Shaping Scout24’s tech for real estate transactions Rowena Patrao, CTO 14:50 We evolved to capture the larger business opportunity Thomas Schroeter, CPO; Ralf Weitz, CCO 15:35 Coffee bre
Slide 4: From classifieds to transactions – our next level operating model
From classifieds to transactions – our next level operating model Tobias Hartmann CEO 4 CMD-2021
Slide 5: For over two decades Scout24 has shown resilient and attractive growth
For over two decades Scout24 has shown resilient and attractive growth through value creation for customers and shareholders ImmoScout24 Revenue Development in changing Real Estate Market German real estate transaction value* ImmoScout24 revenue €bn €m 3 200 2 354 ~388 400 Reflecting strong market p
Slide 6: Since CMD 2019, we strengthened our market position as the #1 player
Since CMD 2019, we strengthened our market position as the #1 player in digital real estate, accelerating our development towards a fully networked marketplace CMD 2019 objectives What we delivered in 2021 (vs. 2019) Transition to fully Shifting From listings to subscriptions & leads with a networke
Slide 7: Evolving market opens up new opportunities for value creation
Evolving market opens up new opportunities for value creation 7 CMD-2021
Slide 8: We have the most developed digital product suite in place
We have the most developed digital product suite in place solving for the current market challenges Evolving German real estate market Continuous product innovation Outpacing German real estate market growth CAGR 2017-2021E • Limited supply & Help more consumers finding their IS24 Residential Real E
Slide 9: A new operational paradigm allowing us to move closer to the transaction
To capture the market opportunities, we have a new operational paradigm allowing us to move closer to the transaction Old paradigm New operational paradigm Objects Listings Detach Customers monetization (Professional & Private) Traffic from listing Transactional eco-system Transaction Money 9 CMD-20
Slide 10: Expanding from our classifieds core
With our new paradigm we are getting serious in expanding from our classifieds core … Online Classified’s TAM: Based completely on Agent Marketing* €1bn TAM Opportunity in Perspective €11bn+ TAM based on our ecosystem strategy with transaction focus 10 CMD-2021 *) We assume 12% marketing spend (of t
Slide 11: … to a significantly bigger playing field
… to a significantly bigger playing field Objects Transactions Customers TAM Belonging to owners are Conducted professionally or privately on an owned object The interaction of objects By addressing the owners’ needs, interacted with in one of and transactions gives rise our TAM becomes much much la
Slide 12: With bolt-on strategic assets we accelerate our execution
With bolt-on strategic assets we accelerate our execution 12 CMD-2021
Slide 13: IV24 brings us closer to the TAM Perspective
IV24 brings us closer to the TAM Perspective sale transaction 375k+ Immoverkauf24: Residential Sale Transactions w/ Agents Help Homeowners find the right Agents (~60% of total 626,000 transactions* p.a.) Deliver prequalified seller leads to Agents Allow Agents spend more time transacting *Source: Ge
Slide 14: Vermietet.de brings us closer to the TAM Perspective
Vermietet.de brings us closer to the TAM Perspective rental transaction Vermietet.de: State-of-the art platform helping 15m+ Privately owned Rental Units in Germany (~36% of total 42m living units in Germany) Landlords manage their rentals Freemium model Starting to monetize in late 2022 Source: BBS
Slide 15: We worked hard behind the scenes on people & technology foundations
We worked hard behind the scenes on people & technology foundations 15 CMD-2021
Slide 16: Our investments in Tech and People are paying off
Our investments in Tech and People are paying off in building the leading digital real estate network of the future Strong Lead Fully-fledged Top-notch generation capabilities Cloud platform Digital Tools Leading seller & mortgage One cloud for all our brands FlowFact & Propstack digitizing leads in
Slide 17: We developed the recipe for accelerating future growth
We developed the recipe for accelerating future growth Complemented the Reengineered Introduced a new Created a product offering by the the Company towards Operational Paradigm Product Suite to target right acquisitions Customer Focus a much larger TAM Objects – Customers – ImmoVerkauf24 + Professio
Slide 18: Shaping Scout24's tech for real estate transactions
Shaping Scout24’s tech for real estate transactions Rowena Patrao CTO 18 CMD-2021
Slide 19: Building blocks that bring our new paradigm to life
By focusing on these building blocks, we bring our new paradigm to life … Private Professional Transactions Transactional Objects Customers Customers ecosystem Establish digital real Role-based e-commerce Digitize the Real Estate Powerful Lead Engine Objects estate object as experience for seekers A
Slide 20: Reflected in key metrics from our platform
... reflected in key metrics from our platform ... 103.6m Avg. Monthly Sessions 4.7m Avg. Monthly Search Contact Requests 4.6m Avg. UMV Apps 9M 2021 9M 2021 9M 2021 1.5m+ ~500k 20,500+ Digital Objects Seller & Mortgage Leads Residential & Business Customers Sep-2021 9M 2021 Sep-2021 20 CMD-2021
Slide 21: A clear focus for the future
… with a clear focus for the future Lead distribution Act on insights algorithm Monitor changes in an object and take action on new opportunities ahead of competitors Smarter distribution of qualified leads Someone selling a house might be looking to buy to the right agents to increase conversion an
Slide 22: We evolved to capture the larger business opportunity
We evolved to capture the larger business opportunity Thomas Schroeter Ralf Weitz CPO CCO 22 CMD-2021
Slide 23: The wave of digitization is redefining the industry
Professional Customers Private Customers The wave of digitization is Users are looking for a customized redefining the industry and efficient experience A new generation of digital-savvy real estate agents A new generation of digital-savvy home seekers and understand that they need to be fast in a h
Slide 24: Both customer groups are becoming increasingly digitized
Both customer groups are becoming increasingly digitized with more transactions initiated through online channels Younger buyers Mortgage rates Digital Agents Average age of the buyers ECB not expecting any Share of transactions originated will decrease by 4% by 2025. significant uplifts until 2025;
Slide 25: We address our customers' changing needs with our product suite
We address our Our Product Suite customers’ changing Our Customers Main Value Drivers needs by delivering Agents 1.1 Membership Upgrades Residential & Commercial Professional products that > Subscriptions & Pricing facilitate real estate Property Managers 2.2 More OTP: Seller Leads > PPA (RLE & IV24
Slide 26: Professional Customers Value Drivers 1&2: Memberships & OTP
Professional Customers Value Drivers 1&2: Memberships & OTP 26 CMD-2021
Slide 27: Value Driver 1: Membership Upgrades & Pricing
Value Driver 1: Membership Upgrades & Pricing • As of Dec-21, ~100% of Residential Sale Agents will be in one of the 3 membership tiers Dec-21E • We have similar membership products for ~19% Property Managers, Commercial Agents, Residential Sale Agents subscribed Developers Dec-21E • Future revenue
Slide 28: Helping our agents fuel their acquisition power
Akquise Acquisition Unsere Edition: Edition: Mitgliedschaften: Der Helping Wo Schlüssel our agents kommen tofür wir her? fuelden their erfolgreichen acquisition powerMakler 30% Premium Image-Boost Premium marketing that stands Promotion to home sellers for every out from competition single listing p
Slide 29: Value Driver 2: More On Top Product Revenue with Seller Leads
Value Driver 2: 100% More On Top Product Revenue with Seller ~30% Leads (RLE & IV24) Verification & qualification Homeowner Seller Leads Directly sold by Submitted to Bundled with submissions Acquisition collected 33/67 as RLE leads partner agents for 40/60 Edition organically / inorganically commis
Slide 30: Value Driver 3: We enhance our mortgage business
Professional Customers Value Driver 3: We enhance our mortgage business by moving into the transaction 30 CMD-2021
Slide 31: Value Driver 3: Move into Mortgage Transaction
Value Driver 3: Mortgage brokerage value chain Move into Mortgage Transaction … Lead generation Advisory & brokerage Platforms Banks Generation of leads Advisory of customers either Provided by for distribution & directly by lending institutions’ financial institutions & finance partners agent or th
Slide 32: Value Driver 3: Enhancing existing MLE business
Value Driver 3: 100% 98.5% … and enhancing existing MLE business …through • Improved lead generation formula • Higher lead quality • More leads • Improved distribution mechanism 1.5% Mortgage Requests Directly sold as Shifted to … complemented by Mortgage Leads with commission-split collected 45/55
Slide 33: Private Customers Value Driver 4: More with Plus
Private Customers Value Driver 4: More with Plus 33 CMD-2021
Slide 34: Tenant+ and Buy+ markets and products
Tenant+ Market: Buy+ Market: 3.2 million rental transactions p.a. in Germany 626,000 sale transactions p.a. in Germany i.e. ~270,000 new potential seekers p.m. i.e. ~52,000 new potential buyers p.m. Average time to find property: ~3-6 months Average time to find property: ~6-12 months Tenant+ Produc
Slide 35: Value Driver 4: Increase number of Plus-Subscribers
Value Driver 4: Increase number of Plus-Subscribers # of Consumer Subscriptions (Tenant+ and Buy+) until 09-2021 250.000 KPIs Sep-2021 (∆ yoy) Growth Target: # Tenant+ Subscribers (eop): 214k (+74%) 200.000 400k+ average # Buy+ Subscribers (eop): 22k (+250%) monthly consumer subscriptions Total Plus
Slide 36: Value Driver 5: Land-grab mode for landlord subscriptions on Vermietet.de
Private Customers Value Driver 5: We deploy land-grab mode to increase landlord subscriptions on Vermietet.de 36 CMD-2021
Slide 37: Value Driver 5: Increase Vermietet.de Units & Landlords
Value Driver 5: TAM Perspective Increase Vermietet.de Units & Landlords 15m+ Privately owned Rental Units in Germany (by 9.8m Before 2021 Private Landlords) Network effect: Once lease is terminated / landlord wants to sell, it creates a lead and potential for further ~20% are newly rented out p.a. m
Slide 38: Committed to deliver on the five value drivers
We are committed to deliver on the five value drivers and will have to invest to secure sustainable double-digit revenue growth Main Value Drivers Growth Targets by 2026 Investment areas to win 1 Membership Upgrades & +4-6% CAGR 1 Product- & sales-driven: Pricing Membership Revenue Automate and upgr
Slide 39: Our growth plan translated into numbers
Our growth plan translated into numbers Dirk Schmelzer CFO 39 CMD-2021
Slide 40: Aiming for double-digit revenue growth with our next level operating model
With our next level operating model we aim to achieve double-digit revenue growth Our Customers Our Product Suite Main Value Drivers 9M 2021 Growth Targets by 2026 Revenue Agents Residential & Commercial Professional 1 Membership Upgrades & +4-6% CAGR €151.0m > Subscriptions Pricing Membership Reven
Slide 41: Resegmentation is a logical consequence of our new operational paradigm
Resegmentation is a logical consequence of our new operational paradigm Professional Customers Private Customers The wave of digitization is Users are looking for a customized redefining the industry. and efficient experience. 41 CMD-2021
Slide 42: New versus current segment structure
The transition from classifieds to a transactional ecosystem is not yet reflected in the way we report our results and how analysts are modelling our future New segment structure (in €m) 9M 2021 9M 2020 9M ∆ 2020 Current segment structure (in €m) 9M 2021 9M 2020 9M ∆ 2020 Group Revenue 287.2 262.6 +
Slide 43: The Professional Segment will include subscription, PPA and other revenues
The Professional Segment will include subscription, PPA and other revenues New segment structure (in €m) 9M 2021 9M 2020* 9M ∆ 2020* Current segment structure (in €m) 9M 2021 9M 2020 9M ∆ 2020 Professional Segment Revenue 194.9 176.1 +10.7% 238.2 Residential Real Estate Segment Revenue 212.4 188.2 +
Slide 44: We will simplify the ARPU calculation for professional customers
We will simplify the ARPU calculation for Professional Customers Q3 2021 Q3 2020 ∆ professional customers Membership Subscription Revenue (in €m; ARPU I) 50.9 48.1 +5.7% going forward RLE Revenue (in €) 5.6 3.5 +60.3% Membership Subscription incl. RLE (in €m; ARPU II) 56.5 51.6 +9.4% IV24 Revenue (i
Slide 45: The Private Segment will also include subscription, PPA and other revenues
The Private Segment will also include subscription, PPA and other revenues New segment structure (in €m) 9M 2021 9M 2020 9M ∆ 2020 Current segment structure (in €m) 9M 2021 9M 2020 9M ∆ 2020 Private Segment Revenue 68.7 63.7 +8.0% 84.3 Residential Real Estate Segment Revenue 212.4 188.2 +12.8% 253.4
Slide 46: A strongly increasing consumer base will support our transaction strategy
A strongly increasing consumer base will Private Customers Q3 2021 Q3 2020 ∆ support our transaction strategy Private Subscription Revenue (in €m) 9.8 7.3 +33.1% # Customers excl. vermietet.de (period average) 219,228 127,222 +72.3% # Customers incl. vermietet.de (period average) 220,678 127,222 +73
Slide 47: Investments into value drivers while structural costs remain under control
The acceleration of our transactional ecosystem approach will be mainly reflected by investments into value drivers, while structural costs remain under control Scout24 Group expected ordinary operating cost development (own work capitalized will remain at around 6% of total revenue) Investment Mode
Slide 48: Targeting double-digit revenue growth in the next years
With our new operational paradigm and the goal to accelerate the transaction focus, we are targeting double-digit revenue growth in the next years 2022E 2023E Target 2026 (CAGR 2023-2026) Professional 10-12% Private 12-14% Revenue growth Media & Other 12-14% Scout24 Group 11-12% around 12% CAGR ~12%
Slide 49: Refined capital allocation strategy
We have refined our capital allocation strategy after a successful capital return roadmap • We will continue to re-invest into growth as first priority. 1. • Any potential M&A activities will be undertaken in a disciplined Re-invest manner with a focus on value creation and moving closer to the real
Slide 50: Since CMD 2019 we have repurchased ~€1.6bn worth of shares
Since CMD 2019 we have repurchased ~€1.6bn worth of shares 19/11/2020: 16/04/2021: 31/01/2020: 18/12/2020: completed completed completed capital €490m €794m public €150m SBB reduction SBB tender 30/06/2021: 03/11/2021: 12/11/2021: & capital completed capital started reduction €200m SBB reduction ~€2
Slide 51: Including ESG goals into our upcoming refinancing
We are planning to include ESG goals into Environment Social Governance our upcoming refinancing Reduce our Carbon Increase Women in Align suppliers with Footprint Leadership our culture Reduce yearly CO2 Improve the ratio of Have all suppliers comply emissions to the minimum women in leadership wit
Slide 52: We bring Classifieds to the next level
We bring Classifieds to the next level 52 CMD-2021
Slide 53: Backup
Backup 53 CMD-2021
Slide 54: Sources for TAM assumptions
Sources for TAM TAM assumptions By addressing the homeowner needs, our TAM becomes much much larger ~€6.5bn1 1. Extrapolated from Destatis Press Release No. Agent Commission Pool 370 of 23-Sep 2019; value for 2017, Destatis Press Residential Sale Release No. 281 of 29-Jul 2020; value for 2019 & GEWO
Slide 55: Investor Relations contact
Ursula Querette Head of Investor Relations & Treasury 55 CMD-2021 Tel +49 89 262 02 4939 | ir@scout24.com