Investor Presentation • Aug 13, 2020
Investor Presentation
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13 August 2020
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.
All information contained herein has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith.
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.
This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person.
By attending, reviewing or consulting the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice.
Nothing in this document constitutes tax advice. Persons should seek tax advice from their own consultants or advisors when making investment decisions.
Quarterly figures are unaudited. All numbers regarding the 2019 segment structure are unaudited and preliminary only, if not otherwise stated.
We pursued our strategic agenda in H1 2020 despite Covid-19 headwinds
Growth & Resilience
Resilient growth & profitability
Successful free private listings initiative
Growth along the sales journey
Innovation
focus
2020 FY Outlook
Group revenue up 1.0% despite Covid-19
Our H1 performance demonstrates growth in all important KPIs and underscores our resilience and momentum
| €173.0m +1.0% Group revenue (continuing operations) |
61.0% +1.6pp ordinary operating Group EBITDA margin |
€709 +4.1% ARPU with residential real estate partners (including finance partners) |
€1,747 +1.8% ARPU with business real estate partners |
|---|---|---|---|
| 19,815 +4.2% customers (residential and business real estate partners) 4 H1 2020 Results Analyst Call |
419,415 -4.8% IS24 listings (period average) |
14.8m +12.1% IS24 monthly users multiplatform (period average) |
110.6m +15.4% IS24 monthly sessions (period average) |
We successfully supported our partners and set standards while navigating the Covid-19 pandemic
Consumers (Homeseekers)
Commercial real estate market stable with uncertain macro-outlook – majority of German hubs still showing rent growth of >2% in H12
"Bestellerprinzip" coming into effect in 2021
Covid-19 support measures strengthened the partnership with our agents
Continued investment in our agent product suite
1 According to IMX purchase and rental prices showed a renewed significant upturn across all property types in Q2 2020, thus mostly surpassing pre-Covid levels. 2 Following strong growth in Q1 2020, the commercial property rental price index (GIMX) shows a stagnating or slightly declining market in Q2 2020.
With our free listing initiatives we fuelled the vibrancy of our marketplace in H1
January/February 2020 March/April 2020 May/June 2020 2019
Private listings largely paid, translating into ARPU of ~€80 per month; free trials only available to limited number of customers
Free trial offer for limited customer groups (rental listings below €400, new customers) to test product market fit
Free trial offer for all private sale and rent listing customers to ensure listing vibrancy during Covid-19 (free trial included max. 25 enquiries and 4 weeks runtime)
Continued free trial offer for all private sale and rent listing customers, runtime reduced to max. 2 weeks
Private listings increased by 30% in April vs. March 2020
Consumers
"Listings Plus"
Q2 private listing revenues of €7.1m due to fenced "Listing Plus" offer (vs. €9.5m in Q1)
Consumer traffic significantly up in H1 (UMV +12%, sessions +15%), but total listings down 5% yoy
We enhance the home selling journey and strengthen our position as leading platform for homeowners
Homeowners browse price atlas to get price indication for comparable objects
1 4 Homeowners join HomesellerHub and enter details of their apartment 2 3
340k owners registered at IS24 (end of H1 2020) with willingness to sell
Realtor Lead Engine: IS24 provides homeowner leads to relevant agents
Thanks to real estate agent & digital professional tools, properties are sold at attractive prices
| Sold. | |
|---|---|
| Immo Scout24 |
|
Lead generation accelerated with 11.2k homesellers connected to agents in H1 2020 (+12% vs. H1 2019)
Increased lead engine revenues: €6m of revenues
generated in H1 2020 (+43% vs. H1 2019)
Immoverkauf24 acquisition fuels the lead engine funnel and enhances the service offering for homeowners
IS24 + IV24 = distinct #1 in traffic and leads
| (€m) | Q2 2020 | Q2 2019 | +/- | H1 2020 | H1 2019 | +/- |
|---|---|---|---|---|---|---|
| Scout24 Group Revenue | 83.9 | 86.9 | -3.5 % |
173.0 | 171.3 | 1.0 % |
| ImmoScout24 Revenue | 83.7 | 86.9 | -3.6 % | 172.8 | 171.2 | 1.0 % |
| - thereof Residential Real Estate |
59.9 | 60.8 | -1.6 % | 123.2 | 120.0 | 2.7 % |
| - thereof Business Real Estate |
16.6 | 17.2 | -3.4 % | 34.6 | 34.1 | 1.4 % |
| - thereof Media & Other |
7.3 | 8.8 | -17.6 % | 15.1 | 17.1 | -12.2 % |
| Ordinary operating Group EBITDA | 50.3 | 53.7 | -6.2 % | 105.4 | 101.8 | 3.6 % |
| Ordinary operating margin Group EBITDA |
60 0 % |
61 7 % |
-1 7 Pp |
61 0 % |
59 4 % |
1 6 Pp |
| Ordinary operating IS24 EBITDA | 52.9 | 55.4 | -4.4 % | 110.4 | 105.4 | 4.7 % |
| Ordinary operating margin IS24 EBITDA |
63 2 % |
63 7 % |
-0 5 Pp |
63 9 % |
61 6 % |
2 3 Pp |
| thereof Residential Real Estate - |
63 9 % |
65 0 % |
-1 1 Pp |
64 % 5 |
62 8 % |
1 7 Pp |
| thereof Business Real Estate - |
70 4 % |
70 2 % |
0 2 Pp |
72 1 % |
68 2 % |
3 9 Pp |
| thereof Media & Other - |
41 0 % |
42 % 7 |
-1 7 Pp |
40 % 4 |
40 0 % |
0 4 Pp |
While we successfully upgraded agents in Q1, we focused on customer retention in Q2 – still generating overall ARPU growth in H1
| Q2 2020 | Q2 2019 | +/- | H1 2020 |
H1 2019 |
+/- | |
|---|---|---|---|---|---|---|
| Residential real estate partners Residential agents and property managers, finance partners (# of core-customers1 end of period) |
17,020 | 16,209 | +5.0% | 17,020 | 16,209 | +5.0% |
| Residential real estate partner ARPU2 (€/month) |
690 | 688 | +0.3% | 709 | 681 | +4.1% |
| Business real estate partners Commercial agents, project developers, new home builders (# of core-customers1 end of period) |
2,795 | 2,808 | -0.5% | 2,795 | 2,808 | -0.5% |
| Business real estate partner ARPU2 (€/month) |
1,706 | 1,737 | -1.8% | 1,747 | 1,716 | +1.8% |
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
| (€m) | Q2 2020 |
Q2 2019 |
+/- | H1 2020 |
H1 2019 |
+/- |
|---|---|---|---|---|---|---|
| Revenues | 83.9 | 86.9 | -3.5% | 173.0 | 171.3 | +1.0% |
| Own work capitalised | 5.4 | 2.9 | +87.7% | 10.8 | 5.9 | +83.6% |
| Personnel | -18.4 | -18.3 | +0.2% | -35.7 | -37.2 | -4.1% |
| Marketing | -5.0 | -6.7 | -25.6% | -13.3 | -14.8 | -10.3% |
| IT | -4.4 | -3.2 | +35.9% | -8.3 | -6.2 | +33.9% |
| Other operating costs | -11.2 | -7.9 | +42.0% | -21.1 | -17.2 | +22.9% |
| Total operating effects1 | -39.0 | -36.2 | +7.7% | -78.4 | -75.4 | +4.0% |
| oo EBITDA |
50.3 | 53.7 | -6.2% | 105.4 | 101.8 | +3.6% |
| oo EBITDA-margin |
60.0% | 61.7% | -1.7pp | 61.0% | 59.4% | +1.6pp |
1 Other operating income to small extent included in other operating costs items
12 H1 2020 Results Analyst Call
Revenue development in Q2 and H1 impacted by Covid-19 effects in April and May
Strong increase in own work capitalised due to product and software development
Operating effects development driven by increased IT costs compensated by reduced personnel and marketing costs
Covid-19 bad debt provisions affecting other operating costs
Group functions contributed €5.1 million to total operating effects
| (€m) | Q2 2020 | Q2 2019 | +/- | H1 2020 | H1 2019 | +/- |
|---|---|---|---|---|---|---|
| Ordinary operating EBITDA | 50.3 | 53.7 | -6.2% | 105.4 | 101.8 | +3.6% |
| Non-operating items | -6.5 | -18.1 | -63.9% | -9.1 | -28.3 | -68.0% |
| Reported EBITDA | 43.8 | 35.5 | +23.3% | 96.4 | 73.5 | +31.1% |
| D&A | -12.1 | -13.9 | -13.2% | -24.9 | -27.5 | -9.6% |
| EBIT | 31.7 | 21.6 | +46.7% | 71.5 | 46.0 | +55.4% |
| Financial result | -3.8 | -5.7 | -34.1% | -10.2 | -9.9 | +3.1% |
| Earnings before Tax | 28.0 | 15.9 | +75.7% | 61.4 | 36.2 | +69.7% |
| Taxes on Income | -10.4 | -6.2 | +68.5% | -17.1 | -8.9 | +93.5% |
| Net income | 17.6 | 9.8 | +80.3% | 44.2 | 27.3 | +62.0% |
| Basic EPS |
0 17 |
0 09 |
+88 9% |
0 42 |
0 25 |
+68 0% |
| Weighted shares (million) # av |
103 6 |
107 6 |
-3 7% |
104 2 |
107 6 |
-3 1% |
Significant decrease in nonoperating items mainly due to high level of share-based compensation and M&A-related costs in previous year
D&A 9.6% below previous year driven by lower IT equipment depreciation and PPA amortisation
Debt repayment reflected in lower financing expenses in Q2 (-34.1% vs. Q2 2019)
Net income of continuing operations increased by +62.0% to €44.2m in H1 2020
Basic earnings per share at €0.42 in H1 2020 (+68.0%)
€490m share buyback programme commenced in April: €140m repurchased in Q2 and €190m until end of July
Scout24 manages its liquidity and investments based on clear guidelines, to reflect liquidity needs and control risk exposure
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
€1,776m
Net Cash as of 30 June 2020
The special fund mainly invests in fixed-yield bonds
Group revenue: Around full year 2019 level • Limited exposure to advertising
▪ Business Real Estate: Slightly decreasing to stable ▪ Media & Other: Low teens percentage decrease
IS24 ooEBITDA margin: Around 62%
Group ooEBITDA margin: Around 60%
| (€ '000) |
Q2 2020 | Q2 2019 | % change | H1 2020 | H1 2019 | % change |
|---|---|---|---|---|---|---|
| Revenue | 83,874 | 86,939 | -3.5% | 172,985 | 171,299 | +1.0% |
| Own work capitalised | 5,443 | 2,900 | +87.7% | 10,826 | 5,895 | +83.6% |
| Other operating income | 1,429 | 842 | +69.7% | 1,725 | 1,567 | +10.1% |
| Total operating performance | 90,746 | 90,681 | +0.1% | 185,536 | 178,761 | +3.8% |
| Personnel expenses | -24,730 | -29,460 | -16.1% | -42,620 | -55,929 | -23.8% |
| Advertising expenses | -5,015 | -6,751 | -25.6% | -13,279 | -14,881 | -10.8% |
| IT expenses | -4,449 | -3,401 | +30.8% | -8,622 | -6,441 | +33.9% |
| Other operating expenses | -12,743 | -15,540 | -18.0% | -24,620 | -27,990 | -12.0% |
| EBITDA | 43,809 | 35,528 | +23.3% | 96,395 | 73,520 | +31.1% |
| Depreciation, amortisation and impairment losses | -12,073 | -13,901 | -13.2% | -24,859 | -27,489 | -9.6% |
| Earnings before interest and tax – EBIT |
31,737 | 21,627 | +46.7% | 71,536 | 46,031 | 55.4% |
| Profit/loss from investments accounted for using the equity method | 48 | -840 | n/a | 82 | -786 | n/a |
| Finance income | 529 | 17 | n/a | 2,150 | 18 | n/a |
| Finance expenses | -4,334 | -4,884 | -11.3% | -12,406 | -9,103 | +36.3% |
| Financial result | -3,758 | -5,706 | -34.1% | -10,173 | -9,871 | +3.1% |
| Earnings before tax | 27,978 | 15,921 | +75.7% | 61,362 | 36,161 | +69.7% |
| Income taxes | -10,386 | -6,164 | +68.5% | -17,141 | -8,860 | +93.5% |
| Earnings from continuing operations after tax | 17,592 | 9,756 | +80.3% | 44,221 | 27,301 | 62.0% |
| Earnings from discontinued operations after tax | 2,255,147 | 17,003 | n/a | 2,255,273 | 24,780 | n/a |
| Earnings after tax | 2,272,740 | 26,759 | n/a | 2,299,494 | 52,081 | n/a |
| (€ '000) |
30/06/2020 | 31/12/2019 |
|---|---|---|
| Current assets | 2,132,669 | 740,382 |
| Cash and cash equivalents | 1,384,319 | 65,574 |
| Trade receivables | 25,830 | 31,241 |
| Financial assets | 684,020 | 1,290 |
| Income tax assets | 37 | 32 |
| Other assets | 38,463 | 7,450 |
| Assets held for sale | - | 634,795 |
| Non-current assets | 1,673,661 | 1,690,810 |
| Goodwill | 692,690 | 692,690 |
| Trademarks | 872,818 | 872,818 |
| Other intangible assets | 80,918 | 91,437 |
| Right-of-use assets from leases | 8,925 | 22,051 |
| Property, plant and equipment | 4,908 | 8,747 |
| Financial assets and investments (equity method) | 13,377 | 2,772 |
| Deferred tax assets | 6 | 277 |
| Other assets | 19 | 18 |
| Total assets | 3,806,330 | 2,431,192 |
| (€ '000) |
30/06/2020 | 31/12/2019 |
|---|---|---|
| Current liabilities | 118,405 | 210,809 |
| Trade payables | 13,505 | 17,905 |
| Financial and lease liabilities | 15,947 | 31,500 |
| Other provisions | 14,442 | 48,038 |
| Income tax liabilities | 48,738 | 17,124 |
| Contract liabilities | 8,973 | 8,339 |
| Other liabilities | 16,800 | 16,192 |
| Liabilities associated with assets held for sale | - | 71,710 |
| Non-current liabilities | 591,653 | 1,166,465 |
| Financial and lease liabilities | 266,157 | 823,274 |
| Other provisions | 35,116 | 44,983 |
| Deferred tax liabilities | 287,946 | 296,060 |
| Other liabilities | 2,434 | 2,148 |
| Equity | 3,096,272 | 1,053,919 |
| Subscribed share capital | 107,600 | 107,600 |
| Capital reserve | 171,133 | 171,133 |
| Retained earnings | 3,109,708 | 904,083 |
| Measurement of pension obligations associated with assets held for sale | - | -206 |
| Other reserves | 2,523 | 879 |
| Treasury shares (5,020,218 shares, previous year: 2,437,041 shares) | -294,692 | -129,571 |
| Total equity and liabilities | 3,806,330 | 2,431,192 |
| (€ '000) |
H1 2020 | H1 2019 |
|---|---|---|
| Cash flow from operating activities of continuing operations | 53,004 | 48,244 |
| Cash flow from operating activities of discontinued operations | -14,671 | 30,550 |
| Cash flow from operating activities (continuing and discontinued) | 38,333 | 78,794 |
| Cash flow from investing activities of continuing operations | -677,443 | -2,298 |
| Cash flow from investing activities of discontinued operations | 2,794,147 | -2,113 |
| - thereof net proceeds from the disposal of discontinued operations |
2,797,448 | - |
| Cash flow from investing activities (continuing and discontinued) | 2,116,704 | -4,411 |
| Cash flow from financing activities of continuing operations | -840,567 | -62,647 |
| Cash flow from financing activities of discontinued operations | -541 | -1,709 |
| Cash flow from financing activities (continuing and discontinued) | -841,108 | -64,356 |
| Net foreign exchange difference, continuing operations | 5 | 5 |
| Net foreign exchange difference, discontinued operations | - | - |
| in equivalents discont Change cash and cash (cont . and ) |
1 313 934 , , |
10 032 , |
| Cash and cash equivalents beginning of period at |
70 385 , |
59 202 , |
| equivalents of period Cash and cash end at |
1 384 319 , , |
69 234 , |
14 Aug. 2020: German language Group Investor Call, Commerzbank 2 Sep. 2020: Barclays Media and Telecom Forum 21 Sep. 2020: Berenberg & Goldman Sachs German Conference 23 Sep. 2020: Baader Investment Conference 11 Nov. 2020: Q3 / 9M 2020 report
Ursula Querette Head of Investor Relations
Telephone +49 89 444 56 3278 Fax +49 89 444 56 193278 [email protected] www.scout24.com
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