Slide 1: Q3 2022 Presentation of the interim report
Q3 2022 Presentation of the interim report Hemnet Group AB ⎸ 20 October 2022 Hemnet Group AB (publ) ｜Klarabergsgatan 60 ｜111 21｜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 Please submit any questions to: ir@hemnet.se
Slide 3: Highlights
Highlights Cecilia Beck-Friis, CEO 3
Slide 4: Quarterly highlights
Quarterly highlights Key financials Highlights “Increased revenue and adjusted EBITDA, driven Net sales growth ● Strong results driven by continued successful by strong demand for our +22.0% ● execution of strategy Strong demand for value-added services value-added services for property sellers as w
Slide 5: Market and business update
Market and business update Cecilia Beck-Friis, CEO 5
Slide 6: New listings remain at higher levels than last year for every quarter in 2022
New listings remain at higher levels than last year for every quarter in 2022 Q3 listings were up 0.2% year on year… …With somewhat slower growth in Q3 Published listings Published listings (Paid published listings on Hemnet) (Paid published listings, year-on-year change) 6
Slide 7: Despite short term shocks to the market, it remains stable over time (2% CAGR)
Despite short term shocks to the market, it remains stable over time (2% CAGR) 2016-2017 2018-2019 2020-2021 2017-2018 First mandatory Enhanced Pandemic: Post amortisation amortisation amortisation lockdowns and requirement recovery requirement requirement restrictions Published listings (Paid publi
Slide 8: Despite a clear buyer's market, asking prices are still holding up
Despite a clear buyer’s market, asking prices are still holding up (but sale prices are down) It is taking longer to sell apartments and price …But property asking prices are increasing, despite expectations are at a record low… the bidding premium going to 0 Listing duration Price expectations Aski
Slide 9: Hemnet is holding up well to the key challenges that a softer market presents
Hemnet is holding up well to the key challenges that a softer market presents Decline in Property prices Interest rates Buyer’s market transaction volumes declining rising Challenge Swedish transaction Increasingly difficult Decreased property Increased cost of volumes decreased for sellers to get the
Slide 10: Q3 ARPL up 28.8% to SEK 3,404 despite challenging market
Q3 ARPL up 28.8% to SEK 3,404 despite challenging market Q/Q growth +41% +34% +29% +45% ARPL growth driven by strong demand for (most recent) value-added services ● Product: Improving the purchasing flow ● Conversion: Some conversion impact driven by lower volumes in major cities (where competition
Slide 11: Launch of "My Home" in apps gives users more reasons to visit Hemnet
Launch of “My Home” in apps gives users more reasons to visit Hemnet New customised home Valuation and sale Relevant properties feed screen duration expectations 11
Slide 12: Developing relevant products for business partners that leverage Hemnet's market position
Developing relevant products for business partners that leverage Hemnet’s market position Real estate agents Property developers ● Connecting sellers and brokers: ● Renew listing: all brokers and driving awareness and traffic to agent property developers without an search page. Continuing improving
Slide 13: We continue investing in product development talent to support our growth journey
We continue investing in product development talent to support our growth journey ● We invest in talent in a scalable way to ensure adequate resources through which we execute our strategy and business plan ● Adding a mix of developer, product and developer management roles ● Slower recruitment pace
Slide 14: New brand campaign "Vägen Hem" launched
New brand campaign “Vägen Hem” launched ● On September 19th, Hemnet’s first brand campaign in many years went live ● Main distribution channels were TV4, social media and Hemnet’s internal channels ● Purpose of the campaign is to i) remind users of the value Hemnet creates and to ii) establish a bra
Slide 15: Financial Update
Financial Update Jens Melin, Interim CFO 15
Slide 16: Financial highlights Q3 2022
Financial highlights Q3 2022 Net Sales ARPL +22% SEK 238.9m +29% SEK 3,404 Adj. EBITDA Cash conversion +26% SEK 128.5m 104% FCF/Adj. EBITDA Adj. EBITDA margin Leverage +1.6pp 53.8% 0.4x Net debt/Adj. EBITDA 16 Rounded growth numbers
Slide 17: Net sales by customer category
Net sales by customer category Product Result Growth Key drivers Property ● Growth in ARPL, coupled with stable listing sellers +29% volumes ● Continued high demand for value added products Real estate and display agents +19% ● Area of accelerated product development focus Real estate ● Developers e
Slide 18: 26% growth in Adj. EBITDA driven by consistent growth in ARPL and operating leverage
26% growth in Adj. EBITDA driven by consistent growth in ARPL and operating leverage ● Continued strong growth in net sales, as a result of increasing average revenue per listing (ARPL) driven by strong growth in the sale of value-added services for seller’s and price adjustments ● Compensation to r
Slide 19: Small increase in leverage driven by share buyback program
Small increase in leverage driven buy share buyback program ● Leverage increased from 0.2x to 0.4x ● Cash and cash equivalents amounted to SEK 124.0m (94.5) ● Net debt amounted to SEK 175.1m (188.6) ● Cash conversion of 103.8% 19
Slide 20: Targeting a SEK 450m buyback ahead of next AGM, in addition to the dividend
Targeting a SEK 450m buyback ahead of next AGM, in addition to the dividend ● Hemnet is targeting to buy back shares for a total of SEK 450m up until the next AGM ● At the end of Q3, Hemnet has distributed a total of SEK 294m back to shareholders (dividend + buybacks) ● An additional SEK 23.1m was r
Slide 21: Results in excess of financial targets
Results in excess of financial targets 21
Slide 22: Summary
Summary Cecilia Beck-Friis, CEO 22
Slide 23: Quarterly highlights
Quarterly highlights Key financials Highlights “Increased revenue and adjusted EBITDA, driven Net sales growth ● Strong results driven by continued successful by strong demand for our +22.0% ● execution of strategy Strong demand for value-added services value-added services for property sellers as w
Slide 24: Q&A
Q&A 24
Slide 25: IR Contacts
Dial-in instructions IR Contacts IR Contacts Hemnet invites analysts, investors and media to participate in the results presentation of the third quarter on 20 October 2022 at 10:00 CET. The results will be presented by CEO Cecilia Beck-Friis and Interim CFO Jens Jens Melin Melin. The presentation w
Slide 26: 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