Scout24 AG

Investor Presentation • Nov 11, 2020

Q3 2020 Results Analyst Call

11 November 2020

Disclaimer

This document has been issued by Scout24 AG (the "Company" and, together with its direct and indirect subsidiaries, the "Group") and does not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any present or future member of the Group.

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The information contained in this presentation is subject to amendment, revision and updating. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company's or, as appropriate, senior management's current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any information contained in this presentation (including forward-looking statements), whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document.

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Quarterly figures are unaudited. All numbers regarding the 2019 segment structure are unaudited and preliminary only, if not otherwise stated.

In Q3, we balanced growth and margin with investments into future growth …

Pursuing our strategic path in a challenging year

Resilient growth and profitabilty

• Slight revenue growth despite free-to-list initiative, declining media business and Covid-19
• 9M Group ooEBITDA margin up to 60% while stepping up Q3 investments

2020 FY outlook

Multi-channel marketing campaign

Integration of immoverkauf24

Continuous innovation

• On track
• Emphasizing the importance of our three user groups
• Supporting digital farming strategy
• Growth contribution to residential real estate segment as part of RLE revenues
• Expansion of homeowner platform
• Several product improvements
• New product launches

… on our way to achieve full year guidance 9M performance underlines growth and resilience

€262.6m +1.0% Group revenue (continuing operations)	60.0% +0.8pp ordinary operating Group EBITDA margin	€709 +2.1% ARPU with residential real estate	€1,740 +0.5% ARPU with business real estate
		partners (including finance partners)	partners
20,005 +5.5%	420,464 -4.0%	14.5m +8.0%	106.9m +11.5%
customers (residential and business real estate partners)	IS24 listings (period average)	IS24 monthly users multiplatform (period average)	IS24 monthly sessions (period average)
4 Q3 2020 Results Analyst Call

Print ads example We launched one of the largest multi-channel campaigns in recent years – "sell better - with an agent" – catering for the needs of our 3 user groups

An agent finds new lovers for your roses.

Agents who actually understand your needs? You can find them with us!

An agent often gets you further than you would think.

An agent quickly brings young life in your old home.

An agent sells grandpa's house quickly and easily.

We enhanced our digital offering for our three user groups – Q3 highlights

• ~30% of membership migration target reached
• New features in agent directory
• Introduced new FLOWFACT product world
• New memberships for property managers and developers
• 5.5% customer growth

Homeowners

• Free listing initiative continued
• Improved Homeseller Hub features
• Enhanced leads product with immoverkauf24
• +36% more leads in Q3 vs. Q2
• ~4,300 landlord subscriptions at the end of Q3

Consumers (seeking real estate)

• Several native app improvements
• +74% yoy MieterPlus subscriptions; >6,000 KäuferPlus subscriptions since product launch in Nov-19
• Digital rental contract with digital signature

We are closely monitoring the impact of the current "lockdown light" on our user groups Staying close to our customers

Measures "lockdown light"

• 4 weeks started on 2 November (effectiveness will be evaluated after 2 weeks)
• Meetings in public restricted to 10 people (max. 2 households)
• Corporate / business activities continue (home office when possible)
• No unnecessary travel
• Schools / Kindergardens remain open
• Restaurants, bars, entertainment facilities, public recreation centres closed

Effect on IS24 user groups

• Increased information / education for agents (Corona Info Hub, Customer Care)
• Increased usage of digital viewings (IS24 trainings); one-on-one viewings still possible
• No group viewings for rental apartments
• Increased usage of moving companies
• Residential real estate market intact
• Increased pressure on business real estate ecosystem (esp. gastro, offices)

Developments of listing/traffic data

• During first week of "lockdown light", very low impact on traffic, listings, enquiries (for commercial enquiries more time and data is needed) …
• … in contrast to first lockdown in March

	CW45 vs. CW44	CW12 vs. CW11
Users	-0.1%	-23.2%
Sessions	-1.2%	-25.7%
Listings	+0.1%	-1.2%
Email Enquiries	+2.4%	-38.2%

On a 9M basis, we delivered both revenue and EBITDA growth despite Covid-19 effects

(€m)	Q3 2020	Q3 2019	+/-	9M 2020	9M 2019	+/-
Scout24 Group Revenue	89.6	88.7	+1.0 %	262.6	260.0	+1.0 %
ImmoScout24 Revenue	89.6	88.7	+1.1 %	262.5	259.9	+1.0 %
- thereof Residential Real Estate	64.9	62.9	+3.3 %	188.2	182.9	+2.9 %
- thereof Business Real Estate	17.1	17.3	-1.5 %	51.6	51.4	+0.5 %
- thereof Media & Other	7.6	8.5	-10.4 %	22.7	25.6	-11.6 %
Ordinary operating Group EBITDA	52.2	52.0	+0.3 %	157.6	153.9	+2.4 %
Ordinary operating margin Group EBITDA	58 2 %	58 % 7	-0 5 pp	60 0 %	59 2 %	+0 8 pp
Ordinary operating IS24 EBITDA	54.7	55.9	-2.2 %	165.1	161.4	+2.3 %
Ordinary operating margin IS24 EBITDA	61 0 %	63 0 %	-2 0 pp	62 9 %	62 1 %	+0 8 pp
thereof Residential Real Estate -	61 4 %	63 4 %	-2 0 pp	63 4 %	63 0 %	+0 4 pp
thereof Business Real Estate -	69 6 %	69 % 7	-0 1 pp	71 3 %	68 % 7	+2 6 pp
thereof Media & Other -	38 6 %	46 6 %	-8 0 pp	39 8 %	42 2 %	-2 4 pp

The residential real estate business shows a strong year-on-year growth

While we successfully focused on customer retention in Q2, we reinforced growth measures in Q3 – overall ARPU growth in 9M

	Q3 2020	Q3 2019	+/-	9M 2020	9M 2019	+/-
Residential real estate partners Residential agents and property managers, finance partners (# of core-customers1 end of period)	17,216	16,162	+6.5%	17,216	16,162	+6.5%
Residential real estate partner ARPU2 (€/month)	703	718	-2.1%	709	695	+2.1%
Business real estate partners Commercial agents, project developers, new home builders (# of core-customers1 end of period)	2,789	2,801	-0.4%	2,789	2,801	-0.4%
Business real estate partner ARPU2 (€/month)	1,715	1,760	-2.6%	1,740	1,731	+0.5%

1 Customers with a running contract containing an obligation for payment which entitles the customer to publish more than one object within the runtime of the contract

2 Average revenue per user per month, calculated by dividing the revenue generated with the respective core customer in the reported period by the average number of core customers in this period (calculated from the opening and closing balance) further divided by the number of months in the corresponding period

Our intensified future investments are most visible in capitalization ratio and marketing expenses

(€m)	Q3 2020	Q3 2019	+/-	9M 2020	9M 2019	+/-
Revenues	89.6	88.7	+1.0%	262.6	260.0	+1.0%
Own work capitalised	5.3	4.0	+34.2%	16.1	9.9	+63.8%
Personnel	-19.4	-19.6	-1.0%	-55.0	-56.8	-3.0%
Marketing	-8.4	-7.8	+7.2%	-21.7	-22.6	-4.3%
IT	-4.4	-4.4	+0.3%	-12.7	-10.6	+20.0%
Other operating costs	-10.6	-8.9	+20.0%	-31.7	-26.0	+21.9%
Total operating effects1	-42.8	-40.6	+5.3%	-121.1	-116.0	+4.4%
oo EBITDA	52.2	52.0	+0.3%	157.6	153.9	+2.4%
oo EBITDA-margin	58.2%	58.7%	-0.5pp	60.0%	59.2%	+0.8pp

1 Other operating income to small extent included in other operating costs items

11 Q3 2020 Results Analyst Call

Strong increase in own work capitalised due to product and software development

9M operating effects development driven by increased IT and other operating costs offset by reduced personnel and marketing costs

Q3 marketing costs increased due to multi-channel marketing campaign

Slowing growth in IT costs due to largely completed cloud-migration

Covid-19 bad debt provisions, selling costs and external labour affecting other operating costs

Our net income benefitted significantly from lower non-operating items

(€m)	Q3 2020	Q3 2019	+/-	9M 2020	9M 2019	+/-
Ordinary operating EBITDA	52.2	52.0	+0.3%	157.6	153.9	+2.4%
Non-operating items	-8.1	-8.3	-2.1%	-17.2	-36.6	-53.1%
Reported EBITDA	44.1	43.8	+0.7%	140.5	117.3	+19.8%
D&A	-12.2	-13.4	-9.3%	-37.0	-40.9	-9.5%
EBIT	31.9	30.3	+5.1%	103.4	76.4	+35.4%
Financial result	-1.4	-3.9	-63.5%	-11.6	-13.7	-15.6%
Earnings before Tax	30.5	26.5	+15.1%	91.9	62.7	+46.6%
Taxes on Income	-10.0	-9.6	+4.3%	-27.2	-18.5	+47.1%
Net income	20.5	16.9	+21.3%	64.7	44.2	+46.4%
Basic EPS (cont'd operations)	0 20	0 16	+25 0%	0 63	0 41	+53 7%
Weighted # shares (million) av	101 5	107 4	-5 5%	103 3	107 5	-3 9%

Significant decrease in 9M nonoperating items mainly due to high level of share-based compensation and M&A-related costs in 2019

• D&A below previous year driven by lower amortisation of intangibles and depreciation of right-of-use assets from leases
• Debt repayment and cash investments reflected in better financial result (Q3: -63.5%; 9M: -15.6%)
• Net income from continuing operations increased by 21.3% in Q3 and 46.4% in 9M
• Basic EPS for cont'd operations at €0.63 in 9M (€22,44 incl. discont'd) and €0.20 in Q3

Our liquidity situation reflects our robust business development and the AutoScout24-transaction

€m

Scout24 manages its liquidity and investments based on clear guidelines, to reflect liquidity needs and control risk exposure

€1,636m

Net Cash¹

External auditor mandated to review the implementation of the investment strategy and the setup of a special fund vehicle ("KVG")

The cash in the money market funds is chiefly earmarked for the share buybacks

The special fund mainly invests in fixed-yield bonds

3 Cash settled SBB until 09/30/2020

We reconfirm our previously announced capital return roadmap

Up to €490m share buyback programme commenced in April: ~€330m repurchased until end of Q3 2020 and ~€404m until end of Oct-20

Up to €200m share buyback programme to be started in 2021 (when the position of treasury shares approaches 10% it will be reduced by partially redeeming shares)

The up to €1.0bn capital decrease via buyback tender in H1 2021 represents the key part of our capital return programme following the sale of AS24

The buyback tender is the key pillar of our capital return programme

Efficient path towards our target capital structure

• Offer Public tender offer to repurchase shares at a fixed price
  • According to 2020 AGM resolution maximum premium of 10% to volume weighted average price 3 days before announcement
  • Resulting tender ratio to be communicated before the launch
• Size Up to 30,000,000 shares or up to 27.88% of current share capital
  • Repurchased shares will be redeemed without exemption
  • Scout24 shareholders will receive tradable tender rights pro rata for their shareholding
  • Will give shareholders flexibility to exercise their rights, acquire additional rights or sell their rights

  • Provides shareholders certainty on tender acceptance (no risk of scale-back) and avoids any share overhang

Tender rights

• 1

Timing • Buyback tender to be executed after the publication of FY 2020 results and before the 2021 AGM

We are confident to reach our full-year guidance for 2020

- Residential Real Estate: Stable to slight growth

Group revenue: Around full year 2019 level

▪ Business Real Estate: Slightly decreasing to stable ▪ Media & Other: Low teens percentage decrease

IS24 ooEBITDA margin: Around 62%

Group ooEBITDA margin: Around 60%

Guidance reflects:

• Strategic path continued
• Resilient Scout24 business model
• Integration of immoverkauf24
• Continued free-to-list initiative
• Reduced exposure to advertising

Underlying assumptions:

• Current "lockdown light" measures do not significantly affect our business with customers and users
• Financial health of customer base remains intact

Your questions & backup

Income Statement

(€ '000)	Q3 2020	Q3 2019	% change	9M 2020	9M 2019	% change
Revenue	89,641	88,710	+1.0%	262,626	260,010	+1.0%
Own work capitalised	5,319	3,962	+34.2%	16,144	9,857	+63.8%
Other operating income	442	756	-41.5%	2,167	2,323	-6.7%
Total operating performance	95,401	93,429	+2.1%	280,936	272,190	+3.2%
Personnel expenses	-26,527	-25,039	+5.9%	-69,147	-80,968	-14.6%
Advertising expenses	-8,395	-7,872	+6.6%	-21,674	-22,753	-4.7%
IT expenses	-4,572	-4,335	+5.5%	-13,194	-10,776	+22.4%
Other operating expenses	-11,836	-12,416	-4.7%	-36,456	-40,406	-9.8%
EBITDA	44,072	43,766	+0.7%	140,466	117,287	+19.8%
Depreciation, amortisation and impairment losses	-12,169	-13,424	-9.3%	-37,028	-40,912	-9.5%
Earnings before interest and tax – EBIT	31,903	30,343	+5.1%	103,439	76,374	+35.4%
Profit/loss from investments accounted for using the equity method	23	37	-37.8%	105	-749	n/a
Finance income	4,844	9	n/a	6,994	27	n/a
Finance expenses	-6,275	-3,900	+60.9%	-18,681	-13,002	+43.7%
Financial result	-1,408	-3,854	-63.5%	-11,581	-13,724	-15.6%
Earnings before tax	30,495	26,489	+15.1%	91,857	62,650	+46.6%
Income taxes	-10,012	-9,602	+4.3%	-27,154	-18,462	+47.1%
Earnings from continuing operations after tax	20,483	16,887	+21.3%	64,704	44,188	46.4%
Earnings from discontinued operations after tax	-1,419	17,141	n/a	2,253,854	41,921	n/a
Earnings after tax	19,064	34,028	-44.0%	2,318,558	86,109	n/a

Balance Sheet (Assets)

(€ '000)	30/09/2020	31/12/2019
Current assets	1,929,077	740,382
Cash and cash equivalents	420,906	65,574
Trade receivables	25,003	31,241
Financial assets	1,469,185	1,290
Income tax assets	59	32
Other assets	13,924	7,450
Assets held for sale	-	634,795
Non-current assets	1,702,322	1,690,810
Goodwill	712,610	692,690
Trademarks	877,430	872,818
Other intangible assets	81,063	91,437
Right-of-use assets from leases	7,714	22,051
Property, plant and equipment	10,946	8,747
Financial assets and investments (equity method)	11,876	2,772
Deferred tax assets	667	277
Other assets	16	18
Total assets	3,631,399	2,431,192

Balance Sheet (Equity and Liabilities)

(€ '000)	30/09/2020	31/12/2019
Current liabilities	123,838	210,809
Trade payables	12,186	17,905
Financial and lease liabilities	23,096	31,500
Other provisions	30,364	48,038
Income tax liabilities	30,876	17,124
Contract liabilities	8,982	8,339
Other liabilities	18,334	16,192
Liabilities associated with assets held for sale	-	71,710
Non-current liabilities	580,968	1,166,465
Financial and lease liabilities	265,939	823,274
Other provisions	24,810	44,983
Deferred tax liabilities	287,896	296,060
Other liabilities	2,323	2,148
Equity	2,926,594	1,053,919
Subscribed share capital	107,600	107,600
Capital reserve	171,133	171,133
Retained earnings	3,128,772	904,083
Measurement of pension obligations associated with assets held for sale	-	-206
Other reserves	4,937	879
Treasury shares (7,556,133 shares, previous year: 2,437,041 shares)	-485,848	-129,571
Total equity and liabilities	3,631,399	2,431,192

Cash Flow Statement

(€ '000)	9M 2020	9M 2019
Cash flow from operating activities of continuing operations	97,199	89,374
Cash flow from operating activities of discontinued operations	-38,417	55,198
Cash flow from operating activities (continuing and discontinued)	58,782	144,572
Cash flow from investing activities of continuing operations	-1,503,896	-7,185
Cash flow from investing activities of discontinued operations	2,827,693	-4,454
- thereof net proceeds from the disposal of discontinued operations	2,792,850	-
Cash flow from investing activities (continuing and discontinued)	1,323,797	-11,639
Cash flow from financing activities of continuing operations	-1,031,518	-86,716
Cash flow from financing activities of discontinued operations	-541	-2,332
Cash flow from financing activities (continuing and discontinued)	-1,032,059	-89,048
Net foreign exchange difference, continuing operations	1	12
Net foreign exchange difference, discontinued operations	-	-
Change in cash and cash equivalents . and discont (cont )	350 521 ,	43 897 ,
equivalents beginning of period Cash and cash at	70 385 ,	59 202 ,
Cash and cash equivalents end of period at	420 906 ,	103 099 ,

Next events:

3 December 2020: Virtual Analyst Day (sell-side only) 25 March 2021: Publication of FY 2020 results

Ursula Querette Head of Investor Relations

Telephone +49 89 262 02 4939 ir@scout24.com www.scout24.com