Slide 1: Q3 2024 Presentation of the interim report
Q3 2024 Presentation of the interim report Hemnet Group ⎸ 24 October 2024 Hemnet Group AB (publ) ｜Sveavägen 9 ｜111 57｜Stockholm｜Sweden
Slide 2: Q3 2024 Summary
Q3 2024 Summary Key financials Highlights Net sales ● Continued high demand for Hemnet Plus and Premium drives strong top line growth, with ARPL contribution from Hemnet +36.8% Premium doubled compared to last year (SEK 372.1m) ● Successful roll-out of new compensation model and a clear ARPL step-cha
Slide 3: Q3 ARPL growth of 42% as contribution from Premium more than doubled
Q3 ARPL growth of 42% as contribution from Premium more than doubled from LY Average revenue per listing (ARPL), quarterly and LTM ARPL growth drivers +42% ● Premium contribution to ARPL is up 2x from LY ● Clear step-change in conversion to Plus and Premium as brokers have embraced the new compensat
Slide 4: Sellers recognise the value of our Plus and Premium, leading to higher conversion
Sellers recognise the value of our Plus and Premium, leading to higher conversion 2 in 3 sellers upgrade to Plus or Premium Paving way for future ARPL growth ● Successful roll out of new compensation model leading to step-change in recommendation levels ∼1 in 2 ∼2 in 3 ● New model sets the foundatio
Slide 5: Listing levels are close to record year 2022, following a reduction in the policy rate
Listing levels are close to record year 2022, following a reduction in the policy rate Published listings and Riskbank policy rate (Year-on-year change in volumes) First amortisation Second requirement amortisation requirement Covid-19 driven Declining property interest rates boom Inflation & increa
Slide 6: Our thesis is unchanged - the Swedish property market is stable over time
Our thesis is unchanged - the Swedish property market is stable over time Published listings Market stability drivers (Country, 12 month moving sum - including trendline) ✓ Market driven by organic demand (“buy to live”) ✓ Dysfunctional rental market ✓ Limited buy-to-let ✓ Easy and cheap to transact
Slide 7: Net sales from property sellers remain strong amid cautious marketing investments from B2B
Net sales from property sellers remain strong amid cautious marketing investments from B2B Product Result Change Key drivers Property ● Strong growth driven increased demand for VAS B2C sellers 46% ● 2.8% growth in published listings Real estate ● Revenue from value-added services for real estate ag
Slide 8: We continue investing in a more personalised experience in an effort to increase engagement
We continue investing in a more personalised experience in an effort to increase engagement Investments in a more personalised …Yield higher engagement from our consumers experience… Registrations to My Home ∼3x vs. last year Logged in users +60% vs. last year Logged in time spent +40% vs. not logge
Slide 9: We continue to make iterative improvements to our seller products
We continue to make iterative improvements to our seller products Implemented during the quarter Next year Improvements to Säljkollen & upgrading Renewal always Expanding the product upcoming listings listing anytime included offering for sellers ● What? Clarified that an ● What? Improving the ● Wha
Slide 10: Continued focus on marketing to solidify Hemnet's strong brand and trust
Continued focus on marketing to solidify Hemnet’s strong brand and trust Brand investments Social media Digital marketing Agent relations Our outdoor campaign, Growing interactions on New paid campaigns on New initiative: digital highlighting our unmatched Instagram and TIkTok, Meta and TikTok diplo
Slide 11: We continue to invest in our organisation
We continue to invest in our organisation Scaling and maturing the business Recent group leadership hires ● In sales, we are moving the organisation to the next level by Hanna Lindqvist | CTO engaging in a more holistic approach towards real estate Formerly EVP Technology at Schibsted agents which c
Slide 12: Financial Highlights
Financial Highlights Anders Örnulf, CFO 12
Slide 13: Q3 2024 Financial summary
Q3 2024 Financial summary Net sales growth & net sales ARPL growth & ARPL EBITDA margin & EBITDA +36.8% +42.0% 55.8% SEK 372.1m SEK 6,183 SEK 207.6m Key Financials Published listings Cash conversion (LTM) Leverage (LTM) Headcount +2.8% 87.0% 0.6x 152 51.5 thousand FCF LTM SEK 596.0m -0.1x vs. last q
Slide 14: 33% EBITDA growth in Q3 2024
33% EBITDA growth in Q3 2024 EBITDA bridge (SEK million, Y/Y change) Key drivers 47% growth in net sales from property sellers A A Net sales supported by step-change in recommendation and conversion Compensation to Agents embracing new compensation model - B B real estate agents higher conversion an
Slide 15: LTM cash flow grows and is used for investments & share buybacks - leverage ratio is decreasing
LTM cash flow grows and is used for investments & share buybacks - leverage ratio is decreasing LTM Free cash flow Share buybacks Net debt and leverage SEK million SEK million SEK million, leverage 15 Note: definitions of alternative key ratios can be found in the financial report
Slide 16: Summary
Summary Cecilia Beck-Friis, CEO 16
Slide 17: Q3 2024 Summary
Q3 2024 Summary Key financials Highlights Net sales ● Continued high demand for Hemnet Plus and Premium drives strong top line growth, with ARPL contribution from Hemnet +36.8% Premium doubled compared to last year (SEK 372.1m) ● Successful roll-out of new compensation model and a clear ARPL step-cha
Slide 18: Q&A
Q&A 18 Hemnet Group AB (publ) ｜Sveavägen 9 ｜111 57｜Stockholm｜Sweden
Slide 19: IR Contacts
Dial-in instructions IR Contacts IR Contacts Hemnet invites analysts, investors and media to participate in the results presentation on 24th October 2024 at 10:00 CET. The results will be Anders Örnulf presented by CEO Cecilia Beck-Friis and CFO Anders Örnulf. CFO The presentation will be held in En
Slide 20: 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 p