Baltic Classifieds Group Plc · LSE:BCG
Baltic Classifieds — FY2022 Earnings Presentation
33 slides from Baltic Classifieds's earnings presentation, July 2022
Slide 1: Full year results presentation
Full year results presentation Year ended 30 April 2022
Slide 2: Exceeding our IPO guidance and delivering commitments
Exceeding our IPO guidance and delivering commitments ü Revenue of €51.0 million grew 21% versus 2021, exceeding IPO guidance ü Adjusted EBITDA1 of €39.3 million with adjusted EBITDA margin2 of 77.1% ü Year-end leverage reduced to 1.7x net debt3 to adjusted EBITDA ü Implementing our capital policy,
Slide 3: Strategic overview
Strategic overview • Record annual revenue in all four business units, exceeding the expectations set at the time of the IPO but still early in the monetisation journey • B2C: improvements to our products and packages supported our annual pricing events which were from September 2021 through to Janu
Slide 4: Financial highlights
Financial highlights +22% • Organic revenue1 grew 22% to €51.0m (2021: €42.3m of which €0.4m from divested business) driven by Autos (+11% organic/ +9% reported), Real Estate (+17%), Generalist (+6%) and Jobs & Services (+97%). Reported revenue grew 21% +19% • Adjusted EBITDA up 19% to €39.3m (2021:
Slide 5: Operational highlights
Operational highlights 65.1 RE brokers up 1% 127 FTEs million visits per month to Auto dealers up 4% women 51% BCG sites Employers up 47% men 49% Leadership position1 against nearest competitors Yields2 increased across all business units improved for all five of largest sites 32.1x B2C C2C 29.0x +8
Slide 6: Our best performance ever despite a 3rd wave of the pandemic and geopolitical tensions
Our best performance ever despite living through a 3rd wave of the pandemic and geopolitical tensions • Despite COVID-19 lockdowns and postponed price rises, we grew strongly in 2021 and 2020, therefore our growth in 2022 is against a tough comparable • 2022 organic growth of 22% on the back of 2021
Slide 7: Financials
Financials
Slide 8: Revenue: a robust financial performance that exceeded the guidance set at the IPO
Revenue: a robust financial performance that exceeded the guidance set at the IPO Revenue (million €) YoY Organic Growth • At the time of the IPO we targeted c.15% growth for the 9% 22% Group • The actual growth was 21% YoY Growth 21% • The main drivers of revenue growth were: 23% 51.0 ü increases i
Slide 9: Healthy revenue growth in all four of our business areas
Healthy revenue growth in all four of our business areas Revenue (million €) Diversified revenue streams 2021-2022 YoY 2022 Revenue split General 51.0 Growth 20% Auto 36% Jobs & Services Re al Estate 10.4 6% 42.3 Jobs & Services Real Es tate 19% 9.8 Generalist Auto 9.8 97% 25% 5.0 17% Automotive mar
Slide 10: Adjusted operating costs under control
Adjusted operating costs under control Adjusted operating costs (million €)(1) The chart shows the underlying costs excluding: In 2022: €7.4 million IPO fees and €1.4 million free share awards to employees relating to the IPO Other public 11.7 In 2021: acquisition related costs of €0.1 million compa
Slide 11: Highest ever adjusted EBITDA exceeding expectations at the time of the IPO
Highest ever adjusted EBITDA exceeding expectations at the time of the IPO Adjusted EBITDA (million €)(1) At IPO we were confident in the sustainability of Group Adj. EBITDA 77.1% margin prior to the impact of listed company costs 78.1% margin(2) • We had €1.6 million of additional public company co
Slide 12: Adjusted operating profit is tracking closely to our adjusted EBITDA
Adjusted operating profit is tracking closely to our adjusted EBITDA IFRS Adjusted IFRS Adjusted IFRS Adjusted Measures Measures Measures Measures Measures Measures 2022 2022 2021 2021 change change (€ millions) (€ millions) (€ millions) (€ millions) (€ millions) (€ millions) 1. IPO related fees (7.
Slide 13: Cash flow from operations before IPO fees payments grew 22%
Cash flow from operations before IPO fees payments grew 22% Net cash inflow from operating activities (million €) Cash conversion (1) 99% Generated cash from operations adjusted with IPO fees 6.4 40.5 Reported generated cash from operations 1.8 • Cash generated from operating activities grew 22% to
Slide 14: Reduced net debt and leverage
Reduced net debt and leverage Net debt(1) bridge (million €) At the beginning of the financial year 2022: • Pre-IPO term loan of €214 million 6.0x(2) • Leverage of 6.0x 199.4 At IPO: ( 20.8) • At IPO repaid a term loan of €214 million • At IPO withdrew a new term-loan of €98 million • At IPO leverag
Slide 15: Capital allocation priorities
Capital allocation priorities Debt repayment and share M&A Dividends buybacks • We will continue to assess value- • We intend to return 1/3 of Adjusted • Because our leverage is already creating opportunities Net Income1 each year via dividend below 2.0x with no further target, we intend to use cash
Slide 16: Strategic Progress
Strategic Progress
Slide 17: Auto - good growth through yield despite the headwinds
Auto - good growth through yield despite the headwinds Average auto price (€) and transactions (k) C2C KPIs YoY Change in no. of (14%) 4% transactions 18.6 YoY Growth YoY Growth in auto 557 7% 24% 13.3 prices 478 496 40% 9,357 (18)% 7,523 26.4 7,004 21.6 2021 2022 2020 2021 2022 Avg. monthly revenue
Slide 18: Real Estate – improved market position and increased yield
Real Estate – improved market position and increased yield Average real estate price (€/sq. m) and transactions (k) C2C KPIs YoY Change in no. of 11% 9% transactions 19.7 YoY Growth YoY Growth in real 16.2 10% 10% 271 249 estate prices (1) 224 22% 14.3 14.5 2% 1,698 1,875 1,547 2021 2022 Monthly Rev
Slide 19: Jobs - hot market, improved product and monetisation
Jobs - hot market, improved product and monetisation has further increased our leading position Average unemployment rate(1) Average gross wage (€)(2) 10% 11% YoY Growth 1,579 8.5% 1,429 7.1% 1,296 6.3% 2019 2020 2021 2019 2020 2021 Lead vs closest competitor B2C KPIs: CVbankas(5) 327.8 Relative Mar
Slide 20: Generalist - continuous growth despite tough comparables in 2021
Generalist - continuous growth despite tough comparables in 2021 C2C KPIs: Skelbiu Lead vs closest competitor 5.7 YoY Growth Relative Market Share (1) vs. Nearest Competitor 5.3 2020 2021 2022 8% 88.7 91.0 15.1x 23.6x 19.7x Lithuania: Skelbiu (2) 3% 1.4x 1.9x 2.2x Estonia: Osta (2) 2021 2022 Revenue
Slide 21: Product developments in H2 2022
Product developments in H2 2022 Auto24.ee full-service car rent Aruodas.lt virtual numbers for C2C customers n Auto24.ee expanded car financing products. In collaboration n Aruodas.lt implemented virtual numbers for C2C clients. It with the financing provider, we offer full-service car rental for st
Slide 22: Product developments in H2 2022
Product developments in H2 2022 CVbankas.lt automatic content translation Skelbiu.lt registration wall for buyers n CVbankas.lt implemented automatic translation of the content. This extends job seekers audience by attracting n Registration wall for buyers introduced as a measure to more foreign can
Slide 23: Outlook
Outlook
Slide 24: Our Growth Runway Is Significant
Our Growth Runway Is Significant Opportunities Targeted Acquisitions The Core (C2C / B2C) Development of Ancillary Products Product Development (Including Listing Promotions) Pricing Actions Underpinned by Baltic Economic Strength Driving Growth in Transaction Volumes and Values 24
Slide 25: Outlook
Outlook • The Board is comfortable guiding to 15% revenue growth in 2023, with Real Estate and Autos growing in line, Jobs & Services above and Generalists slightly below the overall average • The Board expects the Company to maintain adjusted EBITDA margin for 2023 despite rising costs in a high in
Slide 26: Appendices
Appendices
Slide 27: KPIs and revenue by business line
KPIs and revenue by business line Auto 2022 2021 Change, % B2C - Number of Dealers 3,489 3,356 +4% B2C - Monthly ARPU (€) 178 165 +8% C2C - Number of Active Ads 21,579 26,366 (18%) C2C - Monthly Revenue per Ad (€) 19 13 +40% Total Auto revenue, € million 18.3 16.8 +9% Real Estate B2C - Number of Bro
Slide 28: Consolidated statement of profit or loss and other comprehensive income
Consolidated statement of profit or loss and other comprehensive income 2022 2021 (€ millions) (€ millions) Revenue 51.0 42.3 Other income 0.0 0.0 Expenses (37.3) (26.6) Operating profit 13.6 15.7 Finance income 0.1 0.0 Finance expenses (11.3) (13.9) Net finance costs (11.2) (13.9) Profit before tax
Slide 29: Consolidated statement of financial position
Consolidated statement of financial position 30 April 2022 30 April 2021 (€ millions) (€ millions) Assets Property, plant and equipment 0.5 0.2 Intangible assets and goodwill 400.5 416.9 Right-of-use assets 0.5 0.8 Non-current assets 401.4 417.9 Trade and other receivables 3.0 2.6 Prepayments 0.2 0.
Slide 30: Consolidated statement of cash flows
Consolidated statement of cash flows 2022 2021 2022 2021 (€ millions) (€ millions) (€ millions) (€ millions) Cash flows from operating activities Cash flows from investing activities Profit (loss) for the period 2.4 (93.0) Acquisition of intangible assets and property, plant and equipment (0.4) (0.1
Slide 31: We Are The Clear Leader
We Are The Clear Leader Lead over closest competitor Go-to destination for the public Relative Market Share(1) vs. Nearest Competitor, 2022 Monthly Visits per Capita(9), calendar year 2020 8.4 Lithuania Estonia Latvia 6.5 c.4x (2) c.32x (3) c.29x (4) c.12x (4) c.0.9x (5) 4.0 #1 in Latvia is generali
Slide 32: Monetisation journey as presented at the time of IPO
Monetisation journey as presented at the time of IPO C2C B2C Effective Cost of C2C Listing as a % of Underlying Car Value B2C Take Rates (3), calendar year 2019 0.6-1.2% 5 - 6% 4 - 5% 1 - 3% 0.4-0.6% 0.4-0.6% 0.4-0.6% 0.5-0.6% ~0.4% The Baltics Baltics (4) UK Germany B2C Take Rates(3), calendar year
Slide 33: Thank you
Q&A? BOG ss Thank you 33
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