Scout24 Se · XETR:G24
Scout24 — Investor Day (December 2020)
45 slides from Scout24's investor day presentation, Dec 3, 2020
Slide 1: Analyst Day 2020
Analyst Day 2020 Virtual sell-side analyst event 3 December 2020
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: Our plan for today
Our plan for today 10:05 am How and where we are steering the company Tobias Hartmann, Chief Executive Officer 10:25 am Building the ecosystem for German real estate: product and sales perspective Who do we serve? Thomas Schroeter, Chief Product Officer What do we offer? Ralf Weitz, Chief Commercial
Slide 4: How and where we are steering the company
Virtual Analyst Day 2020 How and where we are steering the company
Slide 5: 2020 will go down as one of the more eventful years in Scout24 history
2020 will go down as one of the more eventful years in Scout24 history Ecosystem strategy COVID-19 pandemic Product pipeline Singular focus on real estate, brought Successfully managed Focused on innovative high growth journey model to life, moved into the COVID-19 pandemic, which acted products com
Slide 6: With the CMD in the rear mirror – how does our scorecard look like?
With the CMD in the rear mirror – how does our scorecard look like ? CMD 2019 objectives What we delivered in 2020 (growth rates vs. 2019) New private listings1 Strengthening our presence in private listings Private listings +53% September yoy Increase in number of residential Drive number of agents
Slide 7: We reacted promptly on handling COVID-19 – and developed practices that are there to stay
We reacted promptly on handling COVID-19 – and developed practices that are there to stay Immediate action programme Measures Long-term Impact Liquidity Plus All professional customers were • Strengthened partnership Survive granted a nine-month extension of • Increased commitment payment for the Ap
Slide 8: We launched a substantial marketing campaign to boost our mandate acquisition strategy
We launched a substantial marketing campaign to boost our mandate acquisition strategy 8 Analyst Day - December 2020
Slide 9: We remained focused on our three key user groups – The Happiness Triangle
We remained focused on our three key user groups – “The Happiness Agents Homeowners Triangle” • Clear / transparent product offering with new memberships • Optimised free-to-list offer • Improved Homeseller Hub • Additional acquisition lead • Enhanced leads product with channels for “digital farming
Slide 10: Our transition towards full transaction monetisation is working: from Classifieds to Ecosystem!
Our transition towards full transaction monetisation is working: from Classifieds to Ecosystem! Breakdown of ImmobilienScout24 revenue streams 9M 2019/2020 yoy development Strengthening (without Austria, without FLOWFACT) the recurring B2B 5% 4% 3% business 4% Realtor Lead Engine 9% 12% 5% 9% +51% M
Slide 11: Key focus areas as we head into 2021
Key focus areas as we head into 2021 Sale Journey Rent Journey Dev-Com Journey • Drive ARPU growth via member- • Couple private listings • Monetise new product editions ship migration, upgrades and OTP increase with accelerated for Dev-Com, sector hardest hit MieterPlus+ monetisation by COVID-19 • R
Slide 12: Building the ecosystem for German real estate: product and sales perspective
Virtual Analyst Day 2020 Building the ecosystem for German real estate: product and sales perspective
Slide 13: Sale Journey: What happened since the CMD 2019?
Sale Journey: What happened since the CMD 2019? Sale Journey More agents, more homeowners, more consumers! • Agent membership migration and upgrade strategy with increased transparency • Due to pandemic, strategy shift from Upgrade to Commitment • Due to pandemic, ARPU increases temporarily paused f
Slide 14: We are migrating our residential agents into a fair and consistent price / product system
We are migrating our residential agents into a fair and Sale Journey consistent price / product system aiming at ARPU increases Oct-19 Oct-20 ~35% Pre-Launch ~5% of migration target reached Agents1 subscribed Oct-19 Oct-20 ~€1,100 ~€1,330 ~24% ~35% Monthly ARPU2 Monthly ARPU2 Agents1 subscribed Agen
Slide 15: We are helping agents to prepare for the changes of upcoming Bestellerprinzip
We are helping agents to prepare for the Commission reality for private sellers Sale Journey changes of upcoming Bestellerprinzip starting 2021 1. Guidance on obligations • ImmoCheck: Tool to verify effects of the new law on agents property transactions • Expert webinar series: Providing legal guida
Slide 16: We expand the home selling journey as more homeowners go online
We expand the home selling journey as more homeowners go Sale Journey online strengthening our position in mandate acquisition 1 2 3 4 Homeowners browse Homeowners join Homeseller Hub IS24 Realtor Lead Engine plus IV24 Thanks to real estate agent & price atlas to get price and enter details of their
Slide 17: Rent Journey: What happened since the CMD 2019?
Rent Journey: What happened since the CMD 2019? Rent Journey From Classifieds to Ecosystem! • Scaling new memberships for property managers focusing on efficient rental application Professional • Building out FLOWFACT as #1 marketing and transaction platform landlords • Marketing competitive free-to
Slide 18: We have launched tailored memberships for property managers and are accelerating the roll-out
We have launched tailored Rent Journey memberships for property managers and are accelerating the roll-out Highlights + more attention for the agency business: • New membership roll-out works as Landlord portrait & planned with a growing customer directory highlight entry penetration; our goal: by A
Slide 19: We are making good progress with private landlords to fully digitise the rental journey
We are making good progress with Rent Journey private landlords to fully digitise the rental journey New private listings* (sale + rent) Increased digitisation • Rental contracts can be signed digitally via IS24 (documents created digitally grew by 50% from May to Oct) Start of Listing Plus • Next s
Slide 20: Ole is on the lookout for a new tenant in one of his many properties
Rent Ole is on the lookout for a Journey new tenant in one of his many properties. 20 Analyst Day - December 2020
Slide 21: He receives contact requests from ImmoScout24 via his CRM
Rent He receives contact requests from ImmoScout24 Journey via his CRM at housing management. He decides to use the online viewing service. 21 Analyst Day - December 2020
Slide 22: Ole calls Marvin and invites him to visit
Rent Ole calls Marvin and invites him to visit. Journey Marvin lives in a different city. Ole suggests him to use remote viewing to save Marvin‘s time and money. 22 Analyst Day - December 2020
Slide 23: Marvin looks remotely at the apartment
Rent Marvin looks remotely at the apartment Journey while Ole shows him some design features. 23 Analyst Day - December 2020
Slide 24: Ole finds out that Marvin remains as the best potential tenant
Rent Ole finds out that Marvin remains as the Journey best potential tenant. 24 Analyst Day - December 2020
Slide 25: 2 weeks later…
Rent 2 weeks later… Journey In the meantime, Marvin has also personally viewed the apartment, digitally signed the lease and received the keys. 25 Analyst Day - December 2020
Slide 26: Another happy customer
Rent Another happy customer. Ole sits at his computer Journey and seamlessly transfers the customer data from IS24 into his CRM. 26 Analyst Day - December 2020
Slide 27: We saw a significant uptake of the MieterPlus product for Consumers
We saw a significant uptake of the MieterPlus Rent Journey product for Consumers following the free-to- list initiative Terms of the MieterPlus membership: 3-12 months Includes profile details and an individual description > 165,000 Rental apartment listings of the reasons and criteria for the searc
Slide 28: Dev-Com Journey: What happened since the CMD 2019?
Dev-Com Journey: What happened since the CMD 2019? Dev-Com Journey From projects to relationships! • Improving value of core product set in rent journey (commercial edition, OTPs) • Expanding addressable customer base to tap into larger commission pool Commercial • Entering commercial sale market ag
Slide 29: We are capturing TAM potential with the right product set for the commercial sale journey
We are capturing TAM potential with the right product set Dev-Com Journey for the commercial sale journey Commercial Rent journey = Core revenue Professional Sale Journey Standardise access product and get price What is ? consistency to ensure future growth • 1st commercial agents specific membershi
Slide 30: We extend our offer for developers and hence our TAM
We extend our offer for developers and hence our TAM Dev-Com Journey Goals: 1) higher proportion of recurring revenues, 2) more project volume, 3) higher lifecycle share 1 2 3 Construction (Image) Editions Project product differentiation Pre-acquisition / pre-sales offer Marketing + FLOWFACT new pro
Slide 31: FLOWFACT is key to our ecosystem strategy
FLOWFACT is key to our ecosystem strategy driving recurring agent revenues, customer FLOWFACT engagement and digital sales FLOWFACT is one of the leading real estate CRM software players in Germany >3.7k • The most modern SaaS CRM solution in the market FLOWFACT customers • Migration of customers fr
Slide 32: Digital sales will free up sales capacity to re-invest into customer success management
Digital sales will free up sales capacity to FLOWFACT re-invest Commitment: Keep B2B customers in the into customer ImmoScout24 ecosystem success • Drive stickiness by integrating FLOWFACT and management increasing opportunity costs to churn • Implement customer success management function to drive
Slide 33: We make it happen in 2021!
We make it happen in 2021! Sale Journey Rent Journey Dev-Com Journey • Drive ARPU growth via member- • Couple private listings • Monetise new product editions ship migration, upgrades and OTP increase with accelerated for Dev-Com, sector hardest hit MieterPlus+ monetisation by COVID-19 • Reinforced
Slide 34: Translating strategy into value creation
Virtual Analyst Day 2020 Translating strategy into value creation
Slide 35: We are reporting our business activities in three segments (Residential Real Estate)
We are reporting our business activities in three segments, Sale Rent Journey Journey which represent the different journeys mentioned before Residential Real Estate with 72% revenue share in 9M 2020 Business with Residential Real Estate Partners Business with Consumers Sale Journey Sale Journey Bus
Slide 36: We are reporting our business activities in three segments (Dev-Com, Media & Other)
We are reporting our business activities in three segments, Dev-Com Journey which represent the different journeys mentioned before FLOWFACT Business Real Estate Media & Other with 19% revenue share (9M 2020) with 9% revenue share (9M 2020) Dev-Com Journey • Business with 3rd party advertisers who b
Slide 37: Despite the “lockdown light”, we are on track to reach full year guidance 2020
Despite the “lockdown light”, we are on track to reach full year guidance 2020 Group revenue 62.1% 62.9% guidance + 1.0% “around FY 2019 level” 63.0% 63.4% 68.7% 71.3% 42.2% 39.8% 259.9 262.5 (which was €349.7m) + 2.9% Residential: “stable to slight growth” 182.9 188.2 Thereof: Business:“slightly de
Slide 38: Part of our ARPU growth is based on a spill-over effect
Part of our ARPU growth is based on a spill-over effect Illustrative example with illustrative numbers Scenario I (consistent growth) Scenario II (decreased growth some months) Assumptions Assumptions D 10 10 10 10 10 10 10 10 10 10 10 10 10 D 5 5 5 5 5 5 5 5 5 5 5 5 5 scenario I: scenario II: N 10
Slide 39: With our 2021 initiatives, revenue growth will step up again
With our 2021 initiatives within the diferent journeys, revenue growth will step up again, while uncertainty due to COVID-19 prevails Tailwinds Areas of caution 2021E Residential • Agent customer growth • Limited spill-over benefits (due to COVID-19 months • Focus on agent listing initiatives underw
Slide 40: We optimised our structural costs - creating room for growth investments
We optimised our structural costs - creating room for Growth investments – growth investments Scaling effects balancing growth and margins Increasing revenues (esp. strongly • Free listings initiative growing realtor leads and consumer subscription revenues) • Increased “paid” revenue (affiliate + p
Slide 41: We reconfirm our previously announced capital return roadmap
We reconfirm our previously announced capital return roadmap Remaining shareholder return of up to €1.36 billion of the Up to €490m share buyback announced total of ~€1.69 billion following AS24 sale programme commenced in April and concluded in November 2020 (treasury share 1,888 up to 173 position
Slide 42: The buyback tender is the key pillar of our capital return programme
The buyback tender Offer Public tender offer to repurchase shares at a fixed price (total is the key pillar of • volume of up to € 1bn) our capital return • According to 2020 AGM resolution maximum premium of 10% to programme volume weighted average price 3 days before announcement • Repurchased sha
Slide 43: Wrap-Up
Virtual Analyst Day 2020 Wrap-Up
Slide 44: We remain committed to long term shareholder value creation
We remain committed to long term shareholder value creation Profitable growth Value accretive capital allocation • The best positioned online classifieds • Continued focus and reinvestment platform in Europe into growth • On track to transition to fully monetising • Massive capital return programme
Slide 45: Q&A session
Virtual Analyst Day 2020 Q&A session