Slide 1: Q1 2024 Presentation of the year-end report
Q1 2024 Presentation of the year-end report Hemnet Group ⎸ 23 Apr 2024 Hemnet Group AB (publ) ｜Sveavägen 9 ｜111 57｜Stockholm｜Sweden
Slide 2: Q1 2024 Summary
Q1 2024 Summary Key financials Highlights Net sales ● Revenue from property sellers increased by 49.1% and +33.3% ARPL increased by 32.5% (SEK 253.4m) ● Demand for Hemnet Premium continued to increase, ARPL leading to more than doubled conversion compared to same period last year “Strong first quarte
Slide 3: Q1 ARPL growth of 33% as contribution from Premium more than doubled
Q1 ARPL growth of 33% as contribution from Premium more than doubled from LY Average revenue per listing (ARPL), quarterly and LTM ARPL growth drivers +33% Agent recommendation Timing of ARPL Pricing payment Growth Product & Packaging 3 Source: Hemnet data. Includes paid listings only (excludes new
Slide 4: Positive market momentum as paid published listings increased 11.4%
Positive market momentum as paid published listings increased 11.4% Paid published listings per month (Y/Y change) Commentary ● 8% more transactions in Q1 2024 vs LY ● Price expectations at the highest level since September 2020, with half of Stockholm-based respondents expecting prices to increase
Slide 5: Net sales from property sellers remain strong amid cautious B2B marketing investments
Net sales from property sellers remain strong amid cautious marketing investments from B2B Product Result Change Key drivers Property ● Strong growth driven by ARPL and listing volumes B2C sellers 49% ● Conversion to Premium is more than double that of LY Real estate agents ● Hemnet unique B2B produ
Slide 6: We have developed several levers to drive sustainable ARPL growth
We have developed several levers to drive sustainable ARPL growth ARPL Growth Levers Product Recommendations Timing of payment Pricing (Increasing no. of recommending (Features & value) (Pay when listing is removed) (Finding the right price) agents) ● Product and package ● Increasing % of agents ● C
Slide 7: We have developed several levers to drive sustainable ARPL growth
We have developed several levers to drive sustainable ARPL growth ARPL Growth Levers Recommendations Timing of payment Pricing Product (Increasing no. of recommending (Pay when listing is removed) (Finding the right price) (Features & value) agents) ● Listings with more clicks tend 〜30% 〜50% to have
Slide 8: We have developed several levers to drive sustainable ARPL growth
We have developed several levers to drive sustainable ARPL growth ARPL Growth Levers Product Recommendations Timing of payment Pricing (Features & value) (Increasing no. of recommending (Pay when listing is removed) (Finding the right price) agents) ● Premium has gone from being 〜30% 〜50% half as re
Slide 9: We have developed several levers to drive sustainable ARPL growth
We have developed several levers to drive sustainable ARPL growth ARPL Growth Levers Product Recommendations Pricing (Features & value) (Increasing no. of recommending Timing of payment (Finding the right price) agents) (Pay when listing is removed) ● Appreciated by agents and sellers alike 〜40-50%
Slide 10: We have developed several levers to drive sustainable ARPL growth
We have developed several levers to drive sustainable ARPL growth ARPL Growth Levers Product Recommendations Timing of payment (Features & value) (Increasing no. of recommending (Pay when listing is removed) Pricing agents) (Finding the right price) Hemnet Bas ● Growth increasingly comes from seller
Slide 11: Gradual roll out fully digital flow to simplify and streamline the listing process
Gradual roll out fully digital flow to simplify and streamline the listing process has begun Sellers going through FDF will have Agents can recommend package and select timing for publication to make a package recommendation New! Package Din mäklare Anders Persson recommendation Agents can provide a
Slide 12: Ongoing initiatives to ensure smooth transition to new compensation model on July 1st
Ongoing initiatives to ensure smooth transition to new compensation model on July 1st Updating the compensation model to drive simplicity and the right Key changes in new compensation model incentives Announced during Q4 2023 results ● The updated model better rewards agencies that recommend Plus Bo
Slide 13: Improving the customer experience and encouraging users to log in
Improving the customer experience and encouraging users to log in Driving log-in and a more Gradually improving map Added energy classification to properties personalised user behaviour experience Energy classification part of listing details “”My property” and “log in” now Energy effective propertie
Slide 14: Financial Highlights
Financial Highlights Anders Örnulf, CFO 14
Slide 15: Q1 2024 Financial summary
Q1 2024 Financial summary Net sales ARPL EBITDA +33.3% +32.5% 47.2% SEK 253.4m SEK 4,911 SEK 119.7m Key Financials Published listings Cash conversion (LTM) Leverage (LTM) Headcount +11.4% 89.2% 0.8x 155 41.1 thousand FCF SEK 497.6m Same as last quarter +1 vs Q4 23 / +14 vs Q1 23 15 Note: definitions
Slide 16: 37% growth in EBITDA in Q1 2024
37% growth in EBITDA in Q1 2024 EBITDA bridge (SEK million, Y/Y change) Key drivers 49% growth in net sales from property A A Net sales sellers Compensation to Grows in line with seller revenue and B B real estate agents conversion Other external C C Gradually scaling up marketing efforts expenses I
Slide 17: LTM cash flow grows and is used for investments & share buybacks
LTM cash flow grows and is used for investments & share buybacks - leverage remains stable LTM Free cash flow Share buybacks Net debt and leverage SEK million SEK million SEK million, leverage 17 Note: definitions of alternative key ratios can be found in the financial report
Slide 18: Summary
Summary Cecilia Beck-Friis, CEO 18
Slide 19: Q1 2024 Summary
Q1 2024 Summary Key financials Highlights Net sales ● Revenue from property sellers increased by 49.1% and +33.3% ARPL increased by 32.5% (SEK 253.4m) ● Demand for Hemnet Premium continued to increase, ARPL leading to more than doubled conversion compared to same period last year “Strong first quarte
Slide 20: Q&A
Q&A 20 Hemnet Group AB (publ) ｜Sveavägen 9 ｜111 57｜Stockholm｜Sweden
Slide 21: IR Contacts
Dial-in instructions IR Contacts IR Contacts Hemnet invites analysts, investors and media to participate in the results presentation on 23rd April 2024 at 10:00 CET. The results will be presented Anders Örnulf by CEO Cecilia Beck-Friis and CFO Anders Örnulf. CFO The presentation will be held in Engl
Slide 22: 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 p