Slide 1: Q1 2023 Presentation of the interim report
Q1 2023 Presentation of the interim report Hemnet Group ⎸ 26 April 2023 1 Hemnet Group AB (publ) ｜Sveavägen 9 ｜111 57｜Stockholm｜Sweden
Slide 2: Present today
Present today Cecilia Beck-Friis Jens Melin Nick Lundvall Chief Executive Officer Interim Chief Financial Officer IR Manager & Head of Corporate Development 2
Slide 3: Quarterly summary
Quarterly summary Cecilia Beck-Friis, CEO 3
Slide 4: Q1 2023 Summary
Q1 2023 Summary Key financials Highlights Net sales growth ● Revenues from property sellers increased 11.7% despite a sharp 19.3% decline in newly 5.8% published listings due to macroeconomic factors (SEK 190.1m) ● ARPL increased 38.2 % to SEK 3,706 (2,681), “Strong development for Adj. EBITDA-margin
Slide 5: Q1 ARPL growth of 38% offsets decline in listing volumes
Q1 ARPL growth of 38% offsets decline in listing volumes Y/Y growth +38% +34% +29% +34% Strong growth in revenue from VAS driven (most recent) by product and pricing ● Product: positive contribution from changes in Renewal ● Upgrades: More and more consumers SEK select a larger package for better ex
Slide 6: 5.8% Growth in net sales
5.8% Growth in net sales Product Result Growth Key drivers Property ● Strong ARPL execution offsets significantly weak B2C sellers +12% listing volumes Real estate agents ● Continued investments into marketing and seller +3% contacts, despite challenging housing market Property ● Customer category m
Slide 7: 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 7
Slide 8: Product update
Product update Cecilia Beck-Friis, CEO 8
Slide 9: Product updates: Engaging consumers
Product updates: Engaging consumers Secure listing content Deeper personalised experience Updated renewal rules ● Listings can be renewed after 30 days ● No need to remove listings from Hemnet for 23 days Testing pay after sale (graphic on right) ● Reducing entry barrier for sellers to be on Hemnet
Slide 10: Product updates: Grow sellers
Product updates: Grow sellers Leverage agent value-added services (VAS) Grow ARPL through product & pricing recommendation ● New step in package selection flow that prompts sellers to ● Continued work with product, packaging and pricing reconsider if they select another package than the one across a
Slide 11: Product updates: Transform B2B
Product updates: Transform B2B Helping agents find sellers VAS for property developers ● Traffic to agent search continues to grow Updated property developer Mäklartipset available for ● 30% more views to agents with “Syns mer subscription package property developers för säljare (SMFS)” Previous Upd
Slide 12: We continue investing in product development talent to support our growth journey
We continue investing in product development talent to support our growth journey ● Modest quarter on quarter increase, significant year on year increase in number of employees ● Most Q1 joiners were signed in Q4 2022 ● As previously communicated, we continue maintaining cost control, focusing on fi
Slide 13: Market update
Market update Cecilia Beck-Friis, CEO 13
Slide 14: Interest rates & cost of living create uncertainty and hesitance in buyers and sellers
Interest rates & cost of living create uncertainty and hesitance in buyers and sellers Interest rates Affordability ● When do I know how much price ● Where will rates peak, and when will increases will affect my cost of living they stabilize? ● How will that affect my affordability? Listings and tra
Slide 15: Despite quarterly fluctuations, listing volumes are stable on annual basis
Despite quarterly fluctuations, the need to live means listing volumes are stable on annual basis Published listings Published listings (Year-on-year change in volumes) Second amortisation (Annual) requirement First amortisation requirement Covid-19 driven property interest boom Inflation & increase
Slide 16: We see a number of potential catalysts that could impact the market going forward
We see a number of potential catalysts that could impact the market going forward Factor Potential impact Financials institutions expecting rates to peak Decreased uncertainty around affordability and during 2023 higher willingness to transact Significant number of fixed mortgages up for An increase
Slide 17: Through investments in product development and growth, we are ready when the market turns
Through investments in product development and growth, we are ready when the market turns Consumers Property sellers Real estate agents ● Improving the agent search flow ● Maintaining Hemnet’s position as ● Product updates and pricing launched in 2022 the go to property portal adjustments carry over
Slide 18: Financial Update
Financial Update Jens Melin, Interim CFO 18
Slide 19: Financial highlights Q1 2023
Financial highlights Q1 2023 Net Sales ARPL +6% SEK 190.1m +38% SEK 3,706 Adj. EBITDA Cash conversion +2% SEK 87.2m 98% FCF/Adj. EBITDA Adj. EBITDA margin Leverage -1.7pp 45.9% 0.7x Net debt/Adj. EBITDA 19 Note: rounded growth numbers
Slide 20: 2% growth in adj. EBITDA as we continue investing in the business
2% growth in adj. EBITDA as we continue investing in the business during quarter with lowest activity ● Administration and commission expenses to real estate agents increased 7.7%, in line with increasing revenue from listing related services ● Other external expenses increased by 6.2% to SEK 25.6m
Slide 21: SEK 449m returned through buybacks, and SEK 56m through dividends
A total of SEK 449m returned through buybacks, and SEK 56m through dividends in 2022/2023 ● A total of 3,057,549 shares were repurchased ● Average price per share for the buybacks was SEK 146.9 ● SEK 449.2m spent under the buyback program ahead of the AGM in 2023 ● A total of 2,780,428 shares will b
Slide 22: Financial results comfortably in target range
Financial results comfortably in target range, thanks to strong execution despite challenging market Net sales growth target Adj. EBITDA target Leverage target 15-20% >55% 5-year CAGR <2.0x 5-year CAGR (Long-term, 45-50% for 2023) 22 Note: rounded growth numbers
Slide 23: Summary
Summary Cecilia Beck-Friis, CEO 23
Slide 24: Q1 2023 Summary
Q1 2023 Summary Key financials Highlights Net sales growth ● Revenues from property sellers increased 11.7% despite a sharp 19.3% decline in newly 5.8% published listings due to macroeconomic factors (SEK 190.1m) ● ARPL increased 38.2 % to SEK 3,706 (2,681), “Strong development for Adj. EBITDA-margin
Slide 25: Q&A
Q&A 25
Slide 26: 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 26 April 2023 at 10:00 CET. The results Jens Melin will be presented by CEO Cecilia Beck-Friis and Interim CFO Jens Melin. The presentation will
Slide 27: 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