Slide 1: Q3 2018 Results Conference Call
Q3 2018 Results Conference Call Scout24 AG Christian Gisy (CFO) www.scout24.com Munich | Berlin | 07 November 2018
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: Key Financial Highlights
Key Financial Highlights STRONG ORGANIC REVENUE GROWTH …SUSTAINABLE PROFITABILITY... …AND ROBUST & VISIBLE CASH FLOWS in €m +15.3% +11.1% (+15.5% w/o FINANZCHECK.de) +12.7% (+10.1% w/o FINANZCHECK.de) (+16.3% lfl)3 386 214 191 347 186 170 IFRS 16 like- for-like2 56.0% 92.2% 91.5% ooEBITDA- margin 89
Slide 4: ImmobilienScout24
ImmobilienScout24 REVENUE GROWTH ACCELERATES FURTHER IN Q3 2018 External Revenues +5.8% +7.2% 176 186 59 64 Q3 20171 Q3 2018 9M 20171 9M 2018 ordinary operating EBITDA +5.9% +4.7% 119 126 41 42 67.7% 67.8% 68.4% 66.7% ooEBITDA-margin Q3 20171 Q3 2018 9M 20171 9M 2018 1) Q3 2017 and 9M 2017 financial
Slide 5: ImmobilienScout24 - VIA providing value to our partner's business
ImmobilienScout24 VIA - PROVIDING VALUE TO OUR PARTNER’S BUSINESS Value-added Product Solutions 30.1% Q2 2018: 29.3% VIA Revenues as % of total Successfully market existing IS24 Revenues (Q3 2018) Premium listing products objects Media Display Advertising Build local reputation & brand products Incr
Slide 6: Update on Bestellerprinzip for sale
ImmobilienScout24 UPDATE ON BESTELLERPRINZIP FOR SALE Current environment • There is no legislative draft in place yet and no information on further steps by the German Government and / or a possible timeline for the introduction of a law • A total property sales commission between 4.76% and 7.14% (
Slide 7: AutoScout24
AutoScout24 RECURRING DOUBLE-DIGIT REVENUE GROWTH +15.6% External Revenues +16.0% 133 115 46 40 Q3 2017 1 Q3 2018 9M 2017 1 9M 2018 ordinary operating EBITDA +26.9% +29.9% 69 55 26 20 52.3% 57.0% 47.6% 50.9% Q3 2017 1 Q3 2018 9M 2017 1 9M 2018 ooEBITDA-margin 7 1) Q3 2017 and 9M 2017 financials rest
Slide 8: AutoScout24 - Providing clear benefit to our partners
AutoScout24 PROVIDING CLEAR BENEFIT TO OUR PARTNERS Basic listing package with stronger price increase in Q3 relative Value-added Product Solutions to MIA pricing. 17.9% Q2 2018: 19.1% MIA Revenues as % of total AS24 Dealer Revenues (Q3 2018) Premium listing products Increase demand performance Medi
Slide 9: Consumer Services
Consumer Services +18.5% REVENUE GROWTH SIGNIFICANTLY ACCELERATED BY FINANZCHECK.DE (+12.7% organic) External Revenues 67 +31.1% 3 (+14.3% organic) 57 25 19 3 64 22 2 FINANZCHECK.de Q3 2017 1 Q3 2018 9M 2017 1 9M 2018 +48.4% +25.2% ordinary operating EBITDA (+53.1% organic) (+26.7% organic) 25 10 20
Slide 10: With continued strong growth profile
WITH CONTINUED STRONG GROWTH PROFILE Brokered loans (thousands)1 Brokered loans volume (€m)2 Revenue (€m) 55 1.013 35 49 5 842 28 35 4 578 20 29 23 9M 2016 9M 2017 9M 2018 9M 2016 9M 2017 9M 2018 9M 2016 9M 2017 9M 2018 Pro Forma Reconcilling items 3 Pro Forma Revenue contribution 3 1) Cumulative cu
Slide 11: Ordinary Operating Cost
Ordinary Operating Cost • Increase in capitalisation of internally generated assets partially due to change in 9M 2017 9M 20181 methodology of accounting (€3.0m) offset (in €m) by increase of external labour Revenues 347.4 385.8 • Increase mainly driven by consolidation of FINANZCHECK.DE as well as
Slide 12: Below EBITDA Items
Below EBITDA Items 9M 2017 9M 2018 • Includes expenses of €8.3m for share-based (in €m) compensation, €5.9m for M&A related activities Ordinary operating EBITDA 185.5 213.9 and €0.9m for the office relocation in Munich • Includes €1.6m of extraordinary income for the Non-operating items (14.0) (18.0
Slide 13: 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% Retention • Started in Q3 2018 for key personnel of the company, around 90 participants as of today • Vesting quarterly over a period of 3 r
Slide 14: Capital Structure
Capital Structure Debt structure (as per August 2018)1 Loan volume (€m) Margin • Debt structure reflecting successful early Term loan 300 1.15% refinancing of bank debt in July 2018 RCF I (drawn) 70 0.85% RCF I (undrawn) 130 RCF II (drawn) 250 0.80% • Successfully financed the acquisition of RCF II
Slide 15: We have clear priorities for cash
We have clear priorities for cash Re-invest in growth M&A activities targeted to strengthen market positions or grow adjacencies business Return cash to shareholders Dividend pay-out ratio of 30.0% to 50.0% of adjusted net income over time Repay debt Target leverage ratio of 1.0x to 1.5x over time 1
Slide 16: Outlook Full Year 2018
Outlook Full Year 2018 OUTLOOK FULLY CONFIRMED Revenue ordinary operating EBITDA margin ImmobilienScout24 5.0% to 6.0% growth ImmobilienScout24 At least 68.0% AutoScout24 At least €180.5m AutoScout24 Around 52.0% Increase by at least one Scout24 Consumer Services At least €87.0m Scout24 Consumer Ser
Slide 17: Appendix
Appendix SCOUT24 AG 9M 2018 Results
Slide 18: Recap: New accounting regulations as of 2018
Recap: New accounting regulations as of 2018 IFRS 9, IFRS 15, IFRS 16 ARE BEING APPLIED AS OF 1 JANUARY 2018 IN REPORTING OF SCOUT24 AG IFRS Financial Instruments IFRS Revenue from contracts with customers 9 15 IFRS Leases Financial year 2017 figures to be restated 16 for IFRS 15 18 Scout24 AG | H1
Slide 19: Reconciliation Adjusted Earnings
Reconciliation Adjusted Earnings (in €m) 9M 2017 9M 2018 Earnings before Tax 121.0 144.5 Add back non-operating items 14.0 18.0 Add back D&A on PPA items 29.1 27.1 Add back extraordinary finance expenses / income and effects from derivative instruments1 (3.0) (7.6) Adjusted Earnings before Tax 161.1
Slide 20: Income Statement
Income Statement (EUR '000) 9M 2017 9M 2018 Revenues 347.4 385.8 Own work capitalised 10.7 13.7 Other operating income 0.5 2.4 Total operating performance 358.6 402.0 Personnel expenses (88.7) (97.3) Advertising expenses (38.4) (42.9) IT expenses (12.0) (15.0) Other operating expenses (48.0) (50.8)
Slide 21: Balance Sheet 1 / 2
Balance Sheet 1 / 2 Assets 31.12.2017 30.09.2018 (EUR '000) Current assets 115.275 141.514 Cash and cash equivalents 56.659 61.541 Trade receivables / contract assets 47.432 59.001 Financial assets 1.075 1.511 Income tax receivables 2.653 2.082 Other assets 7.456 17.379 Non-current assets 2.025.188
Slide 22: Balance Sheet 2 / 2
Balance Sheet 2 / 2 Equity and liabilities 31.12.2017 30.09.2018 (EUR '000) Current liabilities 159.194 182.422 Trade payables 22.224 26.080 Financial liabilities 79.511 70.629 Lease liabilities 6.661 Other provisions 6.889 10.504 Income tax liabilities 12.843 25.813 Contract liabilities 9.735 10.64
Slide 23: Cash Flow Statement 1 / 2
Cash Flow Statement 1 / 2 (EUR '000) 9M 2017 9M 2018 Earnings after tax 83.631 102.636 Depreciation. amortisation and impairment losses 42.970 47.941 Income tax expense/(income) 37.385 41.840 Financial income (3.447) (7.700) Financial expenses 10.971 11.344 Result from investments accounted for usin
Slide 24: Cash Flow Statement 2 / 2
Cash Flow Statement 2 / 2 (EUR '000) 9M 2017 9M 2018 Cash flow from investing activities (39.312) (288.718) Repayment of short-term financial liabilities (30.160) (33.070) Raising of medium- and long-term financial liabilities 29 465.000 Repayment of medium- and long-term financial liabilities (220.
Slide 25: IFRS changes to be considered for 2017 and Outlook 2018
IFRS changes to be considered for 2017 and Outlook 2018 IFRS 15 (Recognition of Revenues) • Mandatory as of 1 January 2018 • 2017 financials restated, Actuals 2018 and Outlook 2018 adapted to reflect adjustment • Negative impact on Revenue of € 7.2m in 2017 IFRS 16 (Accounting of Leases) • Mandatory
Slide 26: IR Contact details and financial calendar
IR Contact details and financial calendar Financial Calendar 2019 (expected) Preliminary FY 2018 Results February 12, 2019 Publications Full year report report.scout24.com/2017 CSR Report csrbericht.scout24.com/en Q3 and 9M 2018 report http://www.scout24.com/en/Investor-Relations.aspx Group Interim