Slide 1: Q2 2023 Presentation of the interim report
Q2 2023 Presentation of the interim report Hemnet Group ⎸ 19 July 2023 1 Hemnet Group AB (publ) ｜Sveavägen 9 ｜111 57｜Stockholm｜Sweden
Slide 2: Quarterly summary
Quarterly summary Cecilia Beck-Friis, CEO 2
Slide 3: Q2 2023 Summary
Q2 2023 Summary Key financials Highlights Net sales growth ● Average revenue per listing (ARPL) increased 30.8%, driven by continued increased demand -0.8% for value-added services. (SEK 267.6m) ● Revenues from property sellers increased by 3.9% despite a continued challenging housing “Hemnet deliver
Slide 4: New statistics reconfirm Hemnet's market share - 9/10 properties sold are listed on Hemnet
New statistics reconfirm Hemnet's market share - 9/10 properties sold are listed on Hemnet 9 in 10 properties sold in …just 1 in 10 Sweden are listed on Hemnet… is not on Hemnet 107,248 apartments and 65,546 detached houses were sold in Sweden during 2022. Concurrently, 150,968 properties were sold
Slide 5: Q2 ARPL growth of 31% driven by increased demand for value-added services and pricing
Q2 ARPL growth of 31% driven by increased demand for value-added services and pricing Y/Y growth +38% +31% +29% +34% Strong growth in revenue from VAS driven by (most recent) product and pricing ● Product: ‒ Changes to Hemnet Premium and update to Renewal model yielding results, with Renewal revenue
Slide 6: 2023 YTD volumes remain weak as Swedish Central Bank continues to increase rates
2023 YTD volumes remain weak as Swedish Central Bank continues to increase rates Published listings and Swedish interest rate (Year-on-year change in volumes, base interest rate) What we are seeing in the property market ● Lower volumes: unprecedented decline of 22% as market continues to be hesitan
Slide 7: 0.8% decline in net sales driven by weaker demand for B2B products
0.8% decline in net sales driven by weaker demand for B2B products Product Result Growth Key drivers Property ● Strong ARPL growth, despite an unprecedented B2C sellers 4% decline in listing volumes of 22% Real estate ● Lower discretionary marketing spend agents -9% ● Continued demand for value-adde
Slide 8: We continue investing in talent and optimising our organisation
We continue investing in talent and optimising our organisation Lisa Farrar appointed as Chief Hemnet recognized for employer 7 employees added by end of Q2 Operating Officer (new role) branding efforts by Universum Number of employees (At period end) 7 Employees added, mostly in iOS New role that w
Slide 9: Product update
Product update Cecilia Beck-Friis, CEO 9
Slide 10: Executing on the strategy: 2023 Product roadmap
Executing on the strategy: 2023 Product roadmap Engage consumers Grow sellers Transform B2B Grow ARPL through product & Secure listing content Helping agents find sellers pricing Leverage agents VAS Content Discovery VAS for property developers recommendations Deeper personalised experience 10
Slide 11: Pay-later test appears promising from user satisfaction and revenue perspective
Pay-later test appears promising from user satisfaction and revenue perspective Rationale behind What do we test and evaluate? pay-later test Securing content by decreasing Customer satisfaction 1 threshold to list on Hemnet Impact on conversion Using pay-later as tool in 2 long-term pricing journey
Slide 12: Images on sold properties enable consumer engagement & marketing for agents
Images on sold properties enable consumer engagement & marketing for agents Consumers ● Better understanding ● Save, share and compare ● More engaging content Agencies & Agents ● New marketing opportunity ● Possibility to differentiate based on sales success Photo agencies & Photographers ● Visibili
Slide 13: New sticky bar on mobile platforms makes it easier for users to contact a real estate agent
New sticky bar on mobile platforms makes it easier for users to contact a real estate agent Sticky bar is a great example of a win-win product, with low required investments Consumers ● Easier to contact agent ● Better understanding of who is selling Agencies & Agents ● New marketing opportunity ● P
Slide 14: My Home is a long-term bet, with iterative improvements in user experience and valuation
My Home is a long-term bet, with iterative improvements in user experience and valuation Offer a personalized Hemnet Purpose: experience to increase consumer stickiness and engagement Personalisation: enriching content and increasing relevance Ongoing improvements Quality: presentation of data and a
Slide 15: Financial Update
Financial Update Anders Örnulf, CFO 15
Slide 16: Financial highlights Q2 2023
Financial highlights Q2 2023 Net Sales ARPL -1% SEK 267.6m +31% SEK 4,138 EBITDA Cash conversion -3% SEK 140.7m 99% FCF/Adj. EBITDA EBITDA margin Leverage -1.3pp 52.6% 0.9x Net debt/Adj. EBITDA 16 Note: rounded growth numbers
Slide 17: 3% decline in EBITDA driven by listing volumes and continued investments in product development
3% decline in EBITDA driven by listing volumes and continued investments in product development EBITDA bridge Commentary SEK million Primarily driven by ARPL that balances A Net sales listing volume decline Compensation to Grows in line with seller revenue B real estate agents (29% effective compens
Slide 18: 3.5% of shares outstanding have been repurchased since buybacks started
3.5% of shares outstanding have been repurchased since buybacks started Summary of buyback programs (AGM 2022-2023 & AGM 2023-2024 YTD) Starting total number of shares outstanding 101 131 478 Shares redeemed at 2022 AGM - 2 780 428 Shares bought in 2022 to be redeemed at - 334 121 2023 AGM Shares bo
Slide 19: Listing volume decline has had a significant impact on net sales growth rate
Listing volume decline has had a significant impact on net sales growth rate, despite some offset from ARPL Net sales growth target Adj. EBITDA target Leverage target 15-20% 5-year CAGR >55% <2.0x 5-year CAGR (Long-term, 45-50% for 2023) 19 Note: rounded growth numbers
Slide 20: Summary
Summary Cecilia Beck-Friis, CEO 20
Slide 21: Q2 2023 Summary
Q2 2023 Summary Key financials Highlights Net sales growth ● Average revenue per listing (ARPL) increased 30.8%, driven by continued increased demand -0.8% for value-added services. (SEK 267.6m) ● Revenues from property sellers increased by 3.9% despite a continued challenging housing “Hemnet deliver
Slide 22: Q&A
Q&A 22
Slide 23: IR Contacts
Dial-in instructions IR Contacts IR Contacts Hemnet invites analysts, investors and media to participate in the results presentation of the first quarter on 19 July 2023 at 10:00 CET. The results Anders Örnulf will be presented by CEO Cecilia Beck-Friis and CFO Anders Örnulf. The presentation will be
Slide 24: 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 pr