Scout24 Se · XETR:G24
Scout24 — H1 2019 Earnings Presentation
47 slides from Scout24's earnings presentation, Aug 13, 2019
Slide 1: Scout24 AG H1 2019 Results Conference Call
SCOUT24 AG | H12019 Results Conference Call| August 13, 2019
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: H1 2019 Results Conference Call
SCOUT24 AG H1 2019 Results Conference Call Tobias Hartmann - CEO Dr. Dirk Schmelzer - CFO 3 Scout24 AG | H1 2019 Results Presentation
Slide 4: We are stronger than ever
We are stronger than ever ✓ Outstanding H1 19 trading performance with highest like-for-like YoY growth • IS24: 9% revenue growth notably supported by ARPU increase with residential and business partners • AS24: 20% revenue growth driven by continued ARPU expansion in Germany and in core European co
Slide 5: We have built highly data-driven Market Networks
We have built highly data-driven Market Networks Connected Digital Market Places Agents Dealers Data Consumer Listings behaviour Leads Traffic CONSUMER CONSUMER SERVICES SERVICES 3rd party 3rd party Car Mortgage Relocation Premium OEM Display Consumer Display Display Finance leads leads membership A
Slide 6: We have a clear path to enhance long-term value creation
We have a clear path to enhance long-term value creation 1 • Integration of relevant Consumer Services products and services within IS24 and AS24 • Simplification of the organization Strengthening of Scout24’s two core • Increased accountability across the company verticals • Extension of IS24 and A
Slide 7: We continue to deliver against our commitments
We continue to deliver against our commitments Acceleration of IS24 Revenues with Residential Real Further leveraging of product mix and monetisation Estate Partners to double-digit growth rate opportunities Continued high-teens to low-twenties percentage growth Enhancing of value proposition to cus
Slide 8: Key Operational Highlights
Key Operational Highlights WE ARE THE MOST RELEVANT MARKETPLACE FOR BOTH OUR PARTNERS AND CONSUMERS More than 3m active listings1 Visits to core brands increased y-o-y3 0.1m 1.3m 196m 213m 1.1m 0.5m H1 2019 H1 2019 H1 2018 H1 2019 Leading market positions in Germany and European core countries2 8 ou
Slide 9: Key Financial Highlights 1/2
Key Financial Highlights 1/2 WE DELIVER STRONG REVENUE GROWTH AND STRONG SUSTAINABLE PROFITABILITY AND CASH FLOWS… in €m Ordinary operating +19.7% +10.9% EBITDA margin +18.6% +13.6% l-f-l3 +14.3% l-f-l3 organic 3 : +22.6% l-f-l3 57.3% 301 154 143 139 251 121 93.0% 55.2% 51.2% 87.0% 50.8% 86.7% H1 20
Slide 10: Key Financial Highlights 2/2
Key Financial Highlights 2/2 … WITH ALL OUR SEGMENTS CONTRIBUTING TO THIS STRONG GROWTH in €m Revenue ooEBITDA1 Key Highlights +9.1% l-f-l2 +8.4% l-f-l2 • ARPU growth driving acceleration 122 132 in revenues with residential and ImmobilienScout24 84 90 Business Partners, with double- digit revenue g
Slide 11: ImmobilienScout24
ImmobilienScout24 WE ARE EXPANDING OUR NUMBER ONE POSITION Listings Position Residential Real Estate Partners 460 +3.8% 14,301 14,850 450 IS24 440 430 1.8x 1.8x June 2018 June 2019 270 1.9x 260 1.9x Business Real Estate Partners 250 +0.8% 240 2,785 2,808 Combined 230 competitor 0 Jan Feb Mar Apr May
Slide 12: ImmobilienScout24
ImmobilienScout24 WE ATTRACT AND ENGAGE A LARGE AUDIENCE Increase in Unique Visitors (H1 2019)2 exclusive UMV3: (in millions) 56% of the visits in millions 1 market visits 5.4 IS24 ONLY (H1 2018: 55%) 1.7x 3.1 24% 20% Total: Total: 88m IWH IS24 96m Time Spent (H1 2019)2 (in minutes) 76% 80% 529 H1 2
Slide 13: ImmobilienScout24
ImmobilienScout24 WE PROVIDE MOST VALUE TO OUR PARTNERS’ BUSINESSES VIA Revenues as % of total IS24 Revenues (Q2 2019) Residential Real Estate Partner ARPU (contractual) (in €/month) ARPU growth 31.5% +17.2% increase +5.1% H2 2018 y-o-y: in revenues +0.7% year-on-year 626 659 Q2 2019 y-o-y: +7.1% Ju
Slide 14: ImmobilienScout24: Image Boost
ImmobilienScout24 IMAGE BOOST: INTEGRATED PROMOTION OF AGENTS TO HOMESELLERS Result List Market Information Realtor directory ✓ Opportunity to receive home seller leads, targeted to home sellers in an agent's local market ✓ Homeseller optimised: Banners target homesellers, natively optimised to conv
Slide 15: ImmobilienScout24: Home Seller Hub
ImmobilienScout24 HOME SELLER HUB: GUIDING OUR CONSUMERS ALONG THE SELLING JOURNEY 1 2 3 Home owners show us …which guides them to our home seller hub, …and start their selling their intent to sell on various channels… enabling home sellers to evaluate the market… journey • Valuation • with agent su
Slide 16: Summary: ImmobilienScout24
Summary: ImmobilienScout24 ✓ IS24 continues to improve in strength • Revenue growth is accelerating • Partner numbers are on high-level • Listing gap to competitor is increasing • Traffic remains strong, in particular on mobile ✓ Margin expansion is affected by targeted investment in the next genera
Slide 17: AutoScout24: Germany
AutoScout24 GERMANY: WE OPTIMISE OUR PARTNER BASE TO PROVIDE BETTER VALUE TO CONSUMERS therein Dealer Partner Locations1 ~1,000 CVM1 Dealer Listings2 customers; -16.2% ~2,400 -5.6% customers 26,752 <2 listings 964 960 22,413 June 2018 June 2019 June 2018 June 2019 visits in millions3 26% 21% +8% y-o
Slide 18: AutoScout24: Italy, Austria & Benelux
AutoScout24 ITALY, AUSTRIA & BENELUX: WE MANIFEST OUR LEADERSHIP Dealer Partner Locations1 therein Dealer Listings2 ~300 CVM +4.3% -1.3% customers 22,013 950 991 21,717 June 2018 June 2019 June 2018 June 2019 visits in millions 3 29% 20% +9% y-o-y Total: +24% y-o-y Total: 52m 57m = desktop = mobile
Slide 19: AutoScout24
AutoScout24 WE PROVIDE CLEAR VALUE-ADD TO OUR PARTNERS MIA Revenues as % of total AS24 Dealer Revenues (Q2 2019) Dealer Partner ARPU Germany (contractual) (in €/month) MIA Revenues Q1 2019: 17.4% 17.8% +44.6% 326 226 June 2018 June 2019 Dealer Partner ARPU European Core Countries (contractual) (in €
Slide 20: AutoScout24: Online Car Purchase
AutoScout24 ONLINE CAR PURCHASE: MAKING A CAR PUCHASE EASY AND TRANSPARENT 100k available cars 0.8MM users weekly Complete online funnel including additional services such as financing, insurance and delivery 20 Scout24 AG | H1 2019 Results Presentation
Slide 21: AutoScout24: Direct Sale
AutoScout24 DIRECT SALE: THE FASTEST WAY TO SELL YOUR CAR Four steps to sell your car: 1 1 22 33 44 Indicative Neutral car check Get offers instantly Payment online valuation at convenient location transfer via App (online appointment) 21 Scout24 AG | H1 2019 Results Presentation
Slide 22: Summary: AutoScout24
Summary: AutoScout24 ✓ AS24 on sustainable growth path • Revenue growth is on constant high level, in both Germany and Italy, Austria and Benelux • Dealer location numbers change driven by clean-up with marginal listing and revenue impact • Traffic is building up: we are increasingly delivering a mo
Slide 23: Consumer Services
Consumer Services GETTING CLOSER TO THE TRANSACTION CONSUMER CONSUMER SERVICES SERVICES Property Relocation leads valuations1 >19k >46k Mortgage leads Consumer >36k Journey Touch Points Premium Car subscribers financing leads >65k >2.5k Maintaining outlook of €250m+ in revenues by 2023 Source: Manag
Slide 24: Consumer Services: Premium Membership
Consumer Services PREMIUM MEMBERSHIP: SHIFTING FROM SEARCH ONLY TO LONG-TERM CONSUMER RELATIONSHIPS Search Apply and Move Live Early access and information Fast and convenient application Additional advantage through advantage package instant deposit commitment 24 Scout24 AG | H1 2019 Results Presen
Slide 25: Consumer Services: Finance Boost
Consumer Services FINANCE BOOST: HELPING DEALERSHIPS TO OFFER FINANCING ALTERNATIVES Optional search entry via financing rate to filter affordable search results Integration of dealer financing details along the Prominent and exclusive display of consumer journey on the car dealer financing on the c
Slide 26: Financial Review H1 2019
Financial Review H1 2019 SCOUT24 AG Dr. Dirk Schmelzer (CFO)
Slide 27: Scout24 Group
Scout24 Group STRONG ORGANIC AND INORGANIC GROWTH COMBINED WITH SUSTAINABLE PROFITABILITY +19.7% Revenues1 in €m +13.6% l-f-l2 301 +18.9% 251 +13.1% l-f-l2 +55.1% y-o-y 152 128 +51.1% y-o-y +15.5% y-o-y +14.4% y-o-y CS AS24 +8.2% y-o-y +8.7% y-o-y IS24 H1 2018 H1 2019 Q2 2018 Q2 2019 Ordinary operat
Slide 28: ImmobilienScout24: Platform for Continued Growth
ImmobilienScout24 PLATFORM FOR CONTINUED GROWTH Key highlights Subline im Text ImmobilienScout24 Q2 2018 Q2 2019 y-o-y H1 2018 H1 2019 y-o-y Lorem (in €m) ipsum et dolor sit amet. Ut wisi enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis nisl ut Revenue with Residential
Slide 29: AutoScout24: Delivering on Growth Potential
AutoScout24 DELIVERING ON GROWTH POTENTIAL AutoScout24 Key highlights Q2 2018 Q2 2019 y-o-y H1 2018 H1 2019 y-o-y (in €m) Revenue with Dealers 18.9 23.0 21.4% 37.4 46.1 23.1% • Revenue growth like-for-like: Germany H1 2019 – 20.0%, Q2 2019 – 18.8% Revenue with Dealers in 18.3 21.6 18.0% 35.7 42.2 18
Slide 30: Scout24 Consumer Services
Scout24 Consumer Services TAKING THE BUSINESS TO THE NEXT LEVEL Consumer Services Key highlights Q2 2018 Q2 2019 y-o-y H1 2018 H1 2019 y-o-y (in €m) Revenue with Finance • Revenue growth like-for-like: 10.6 21.4 102.1% 20.6 42.6 106.5% Partners H1 2019 – 14.6%, Q2 2019 – 10.5% • Revenue with Finance
Slide 31: Ordinary Operating Cost
Ordinary Operating Cost H1 2018 H1 2019 (in €m) Revenues 251.2 300.7 Own work capitalised 9.6 9.1 • Increase mainly attributable to consolidation of FZ.de Personnel (incl. external labour) (69.6) (82.9) • Reflecting migration of data center in cloud- Marketing (online & offline) (27.4) (43.3) based
Slide 32: Below EBITDA Items
Below EBITDA Items H1 2018 H1 2019 Including personnel expenses of €22.9m (therein (in €m) • €21.5m for share-based compensation) as well as Ordinary operating EBITDA 138.8 153.9 €8.8m for M&A related activities. Non-operating items (7.8) (32.2) Reported EBITDA • H1 2019 including €3.8m (H1 2018: €3
Slide 33: Capital Structure
Capital Structure Debt structure Loan volume (€m) Current margin • Repayment of 35 million Euros in May Term loan 300 1.15% towards RCF II increasing the undrawn RCF I (drawn) 20 0.85% line to 285 million Euros RCF I (undrawn) 180 RCF II (drawn) 215 0.80% • Repayment of 18 million Euros in April RCF
Slide 34: We have optimised priorities for cash
We have optimised priorities for cash Long-term leverage of up to 3.5:1 1 • Scout24 will continue to re-invest into growth as first priority Re-invest into growth • Any potential M&A activities will be undertaken in a disciplined manner with a focus on value accretion and strengthening of the market
Slide 35: Outlook Full Year 2019
Outlook Full Year 2019 Revenue growth1 ordinary operating EBITDA margin 9.0% to 11.0% ImmobilienScout24 reported 8.0% to 10.0% ImmobilienScout24 Up to 70.0% 12.0% to 14.0% AutoScout24 reported 9.0% to 11.0% AutoScout24 Up to 54.0% 15.0% to 17.0% Scout24 Consumer Services reported high 30% to low 40%
Slide 36: Q&A
Q&A 37 page 36 Scout24 AG | H1 2019 Results Presentation
Slide 37: Appendix
Appendix SCOUT24 AG H1 2019 Results
Slide 38: New long term incentive programme (LTIP)
New long term incentive programme (LTIP) 2018 2019 2020 2021 • Replacement of existing MEP (only valid for a limited amount of people, running out in 2019) 35% Started in Q3 2018 for key personnel of the company, Retention • around 90 participants as of today • Vesting quarterly over a period of 3 r
Slide 39: AutoScout24: Adjusted to Reflect Operations
AutoScout24: Adjusted to Reflect Operations AS24 as reported AS24 new disclosure1 AutoScout24 H1 H2 FY AutoScout24 H1 H2 FY (in €m) 2018 2018 2018 (in €m) 2018 2018 2018 Revenue with Dealers Revenue with Dealers 36.7 40.8 77.5 37.4 43.1 80.5 (+3.0) Germany Germany Revenue with Dealers Revenue with D
Slide 40: Scout24 Consumer Services: Adjusted to Reflect Operations
Scout24 Consumer Services: Adjusted to Reflect Operations Scout24 CS as reported Scout24 CS new disclosure1 Scout24 Consumer Scout24 Consumer H1 H2 FY H1 H2 FY Services Services 2018 2018 2018 2018 2018 2018 (in €m) (in €m) Revenue with Finance Revenue with Finance 20.6 34.2 54.8 20.6 34.2 54.8 Part
Slide 41: Reconciliation Adjusted Earnings
Reconciliation Adjusted Earnings (in €m) H1 2018 H1 2019 Earnings before Tax 92.5 76.7 Add back non-operating items 7.8 32.2 Add back D&A on PPA items 17.9 19.4 Add back extraordinary finance expenses / income and effects from derivative instruments1 (1.0) 1.9 Adjusted Earnings before Tax 117.2 130.
Slide 42: Income Statement
Income Statement (EUR miilion) H1 2018 H1 2019 Revenues 251.2 300.7 Own work capitalised 9.6 9.1 Other operating income 2.1 2.3 Total operating performance 262.9 312.1 Personnel expenses (59.9) (90.5) Advertising expenses (28.2) (44.1) IT expenses (9.8) (12.1) Other operating expenses (33.9) (43.7)
Slide 43: Balance Sheet 1 / 2
Balance Sheet 1 / 2 (EUR million) 31/12/2018 36/06/20191 Assets (adjusted)1 Current assets 137.1 146.6 Cash and cash equivalents 59.2 69.2 Trade receivables 59.4 60.9 Financial assets 7.5 1.2 Income tax assets 0,7 1.2 Other assets 10.3 14.1 Non-current assets 2,327.2 2,302.2 Goodwill 1,071.4 1,071.1
Slide 44: Balance Sheet 2 / 2
Balance Sheet 2 / 2 (EUR million) 31/12/2018 30/06/20191 (adjusted)1 Equity and liabilities Current liabilities 138.4 114.7 Trade payables 38.1 25.1 Financial liabilities 23.4 22.1 Lease liabilities 6.6 6.6 Other provisions 9.0 8.9 Income tax liabilities 28.5 17.1 Contract liabilities 9.7 10.9 Other
Slide 45: Cash Flow Statement 1 / 2
Cash Flow Statement 1 / 2 (EUR million) H1 2018 H1 2019 Earnings after tax 66.4 52.1 Amortisation, depreciation and impairment losses 31.4 35.8 Income tax expense/(income) 26.1 24.7 Financial income -1.0 (0.2) Financial expenses 8.2 9.1 Profit/loss from investments accounted for using the equity met
Slide 46: Cash Flow Statement 2 / 2
Cash Flow Statement 2 / 2 (EUR million) H1 2018 H1 12019 Cash flow from investing activities (16.6) (4.4) Repayment of short-term financial liabilities (32.3) (4.4) Raising of medium- and long-term financial liabilities 215.0 - Repayment of medium- and long-term financial liabilities (220.0) (53.0)
Slide 47: IR Contact details and financial calendar
IR Contact details and financial calendar Financial Calendar 2019 (expected) Annual general meeting August 30, 2019 Interim report Q3 2019 November 7, 2019 Capital Markets Day November 26, 2019 Publications Full year report report.scout24.com/2018 CSR Report csrbericht.scout24.com/en Britta Schmidt