Baltic Classifieds Group Plc · LSE:BCG
Baltic Classifieds — FY2023 Earnings Presentation
32 slides from Baltic Classifieds's earnings presentation, Nov 12, 2023
Slide 1: Full year results presentation
Full year results presentation Year ended 30 April 2023
Slide 2: Financial highlights
Financial highlights +19% +17% 76% +17% Revenue up to €60.8m Adjusted operating profit3 (2022: €51.0m): EBITDA up to €46.0m 1 EBITDA margin 1 Autos +22% (2022 adjusted (2022 adjusted EBITDA up to €45.3m (2022: €38.5m). Real Estate +21% EBITDA2: €39.3m) margin2: 77%) Reported operating profit up to €
Slide 3: Operational highlights
Operational highlights Significant leadership position5 against nearest B2C customers: C2C listings: competitors maintained for all largest sites 20216 20226 2023 Auto: +3% Auto : +24% 1 Real Estate: +0% Real Estate: +14% Jobs4:(4)% vs 2022 Services2: +24% (+42% vs 2021) Generalist3: +4% 3.4 4.4 5.6
Slide 4: Cultural highlights
Cultural highlights 100 tCO2e emissions 1 Near term target Remained aproved by the Science reduced by 45% (2022: 183 tCO2e), carbon neutral across Based Targets initiative exceeding our near term target to reduce Business Ambition for 1.5°C Scope1&22 Scope 1&2 by 42% by 2030 Ranked as 2nd of the Bes
Slide 5: Financials
Financials
Slide 6: Robust revenue growth underpinned by strength in the core business
Robust revenue growth underpinned The growth came from the core classifieds by strength in the core business revenue streams - B2C and C2C - which represent 88% of BCG revenue and grew 21% and 25% respectively 19% 37% Revenue (million €) Diversified revenue streams Year ended 30 April 2023 is shown
Slide 7: Resilient in a time of macroeconomic uncertainty
Resilient in a time of macroeconomic uncertainty Revenue (million €) M&A: Auto24 1st wave of Covid-19 2022 Russian invasion of Ukraine Our business, together with Baltic economies, continue 7 to demonstrate impressive resilience to multiple recent 6 and ongoing adverse shocks 5 COVID-19 pandemics, d
Slide 8: Operating costs
Operating costs Our costs are under control and public listed company costs are close to expected annual level Operating costs1 (million €) Year ended 30 April 2023 is shown as 2023 People costs: • Our team grew from 127 FTEs to 134 FTEs, including 5 GetaPro employees who joined as part of the acqui
Slide 9: Highest ever EBITDA with 76% margin
Highest ever EBITDA with 76% margin There were no add-backs to EBITDA in 2023 EBITDA (million €)1 Net cash inflow from operating activities (million €) Year ended 30 April 2023 is shown as 2023 Year ended 30 April 2023 is shown as 2023 Adjusted EBITDA Cash conversion3 99% Growth in cash flow from op
Slide 10: Adjusted operating profit is tracking closely to our EBITDA
Adjusted operating profit is tracking closely to our EBITDA IFRS Adjusted IFRS Adjusted IFRS Adjusted Measures Measures Measures Measures Measures Measures 2023 2023 2022 2022 change change (€ millions) (€ millions) (€ millions) (€ millions) Revenue 60.8 60.8 51.0 51.0 19% 19% Operating cost excludi
Slide 11: Reduced net debt and leverage
Reduced net debt and leverage Net debt1 bridge (million €) Year ended 30 April 2023 is shown as 2023 At the beginning of 2023: Leverage2 Leverage2 • Loan of €84 million 1.7x 1.0x • Leverage of 1.7x 66.4 During 2023: • Voluntarily repaid €14 million • 3.4 million shares repurchased since 1.6 0.6 45.3
Slide 12: Capital allocation priorities remain unchanged
Capital allocation priorities remain unchanged M&A Dividends Debt repayment We will continue to assess We intend to return 1/3 of Adjusted and share value-creating opportunities Net Income1 each year via dividend Cash is most likely source of Interim (1/3) and final (2/3) dividend buybacks financing
Slide 13: Strategic Progress
BALTIC CLASSIFIEDS GROUP
Slide 14: Auto revenue up 22%
Auto revenue up 22% Through improved yield, normalized selling period and rising transaction values Average auto price and transactions1 C2C KPIs YoY YoY YoY YoY 19.9 478 496 487 Growth 18.6 Growth Growth Growth Transactions 13.3 +40% +7% Monthly Revenue +4% 9.4 (2%) 11.2 (thousand) per Ad (€) 7.5 A
Slide 15: Real Estate revenue up 21%
Real Estate revenue up 21% Through improved yield, normalized selling period and rising transaction values Average apartment price1 and transactions2 C2C KPIs YoY YoY YoY YoY 22.5 271 Growth Growth 249 Growth Growth Transactions 19.7 219 (thousand) Monthly Revenue +9% (19%) 2.2 Average 16.2 +22% +14
Slide 16: Jobs & Services revenue up 20%
Jobs & Services revenue up 20% Through continuously strong demand for workers, improved yield and a significant growth of Services Monthly average gross wage1 C2C KPIs: Services and average unemployment rate2 YoY YoY 21.7 Growth Growth Monthly Revenue YoY YoY Growth 1.6 Growth 1.8 Monthly average +7
Slide 17: Generalist revenue up 13%
Generalist revenue up 13% Through growing number of listings, yield improvement and a value-based pricing C2C KPIs: Skelbiu Lead vs closest competitor Relative Market Share1 vs. Nearest Competitor YoY YoY 6.5 5.3 Growth 5.7 Growth Revenue per Listing (€) 88.7 +8% 91.0 +14% 94.4 No. of Listings 19.1x
Slide 18: Product developments in 2023
Product developments in 2023 Autoplius.lt signed a contract with a new strategic partner for a car Both Aruodas.lt and KV.ee introduced a new product for real estate financing product. The new cooperation provides us with better developers, which provides more prominence, more relevant information c
Slide 19: Product developments in 2023
Product developments in 2023 Getapro.lv implemented a subscription-based monetization model. In Osta.ee we introduced packages for business customers. CVbankas.lt developed a role-based access management to facilitate Skelbiu.lt introduced 2 factor authentication for high risk logins. the usage of t
Slide 20: Outlook
BALTIC CLASSIFIEDS GROUP
Slide 21: Our growth runway is significant
Our growth runway is significant Underpinned by Baltic economic Opportunities Targeted acquisitions Opportunities Development of ancillary products strength Product development (Including listing promotions) The Core (B2C & C2C) Pricing actions The Co 21 Source: Company information.
Slide 22: Macroeconomic overview
Macroeconomic overview Historical growth exceeding Cooldown, not a crisis Strong credit profile the EU average growth GDP GDP Public sector debt Lithuania: 4.9% Lithuania: (0.2)% Lithuania: 38.4% CAGR 2000-2022: YoY 2023F: % of GDP, 2023F: Estonia: 3.6% Estonia: (0.4)% Estonia: 19.5% Latvia: 4.3% La
Slide 23: Outlook
Outlook The year has started strongly. At the beginning of the new financial year, we implemented C2C pricing and packaging changes across all our business units and early signs are encouraging. We will implement B2C pricing and packaging changes from September. The Board is guiding to 15% revenue g
Slide 24: Appendices
BALTIC CLASSIFIEDS WU croup ee
Slide 25: KPIs and revenue by business line
KPIs and revenue by business line 2023 2022 Change, % B2C - Number of Dealers 3,586 3,489 3% Auto B2C - Monthly ARPU (€)1 230 178 30% C2C - Number of Active Ads2 26,824 21,579 24% C2C - Monthly Revenue per Ad (€)2 20 19 7% Total Auto revenue, € million 22.2 18.3 22% B2C - Number of Dealers 4,877 4,8
Slide 26: Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of profit or loss and other comprehensive income Year ended 30 April 2023 Year ended 30 April 2022 restated (€ millions) (€ millions) Revenue 60.8 51.0 Other income 0.0 0.0 Expenses (31.8) (37.3) Operating profit 29.1 13.6 Finance income 0.0 0.1 Finance expenses (2.7) (11.3) N
Slide 27: Consolidated statement of financial position
Consolidated statement of financial position 30 April 2023 (€ millions) 30 April 2022 (€ millions) 30 April 2021 restated (€ millions) Assets Property, plant and equipment 0.5 0.5 0.2 Intangible assets and goodwill 385.6 400.5 416.9 Right-of-use assets 0.9 0.5 0.8 Other non-current receivables 0.2 -
Slide 28: Consolidated statement of cash flows
Consolidated statement of cash flows Year ended 30 April 2023 (€ millions) Year ended 30 April 2022 restated (€ millions) Cash flows from operating activities Profit (loss) for the period 23.2 1.1 Adjustments for: Depreciation and amortization 17.0 16.9 Amortization of up-front fee and borrowing cos
Slide 29: Consolidated statement of cash flows (cont.)
Consolidated statement of cash flows (cont.) Year ended 30 April 2023 (€ millions) Year ended 30 April 2022 restated (€ millions) Cash flows from investing activities Acquisition of intangible assets and property, plant and equipment (0.3) (0.4) Proceeds from sale of property, plant and equipment 0.
Slide 30: We are the clear leader
We are the clear leader Lead over closest competitor Go-to destination for the public Relative Market Share1 vs. Nearest Competitor, H1 2023 Monthly Visits per Capita9, calendar year 2020 Lithuania Estonia Latvia 8.4 c.6x2 c.29x3 6.5 c.0.7x5 4 c.21x 4 c.16x 4 #1 in Latvia is generalist portal SS.lv
Slide 31: Monetisation journey as presented at the time of IPO
Monetisation journey as presented at the time of IPO C2C B2C Effective Cost of C2C Listing as a % of Underlying Car Value B2C Take Rates3, calendar year 2019 0.6-1.2% 5-6% 4-5% 0.4-0.6% 0.4-0.6% 0.4-0.6% 0.5-0.6% 1-3% ~0.4% Baltics1 Baltics1 B2C Take Rates3, calendar year 2019 7-9% 3-5% 2-3% Effecti
Slide 32: Thank you
BALTIC. CLASSIFIEDS GROUP ~ Thank you a Q&A?
Baltic Classifieds Group — FY2023 Earnings Presentation on 6ix