Hemnet Interim report Q1

Interim report Q1

January-March 2024

"Strong first quarter results with 33% net sales growth and 37% growth in EBITDA, driven by increased demand for valueadded services."

	Jan-Mar			Last twelve months	FY
(SEK million, unless stated otherwise)	2024	2023	Change	ending Mar 2024	2023
Net sales	253.4	190.1	33.3%	1,068.0	1,004.7
EBITDA*	119.7	87.2	37.3%	558.0	525.5
EBITDA-margin*, %	47.2%	45.9%	1.3 pp	52.2%	52.3%
Operating profit*	98.9	68.1	45.2%	479.0	448.2
Net profit for the period	72.4	50.7	42.8%	360.4	338.7
Earnings per share, basic, SEK¹	0.75	0.51	46.2%	3.71	3.48
Earnings per share, diluted, SEK¹	0.75	0.51	45.7%	3.71	3.48
Cash flow from operating activities	90.5	73.7	22.8%	412.7	395.9

¹ The calculation of dilution of shares is made based on the number of days that the warrant programmes that have been active during each respective period.

* Alternative Performance Measure, see pages 15-17 for derivation and definitions.

Summary for the period January-March 2024

` Net sales increased by 33.3 percent to SEK 253.4m (190.1)

` EBITDA increased 37.3 percent to SEK 119.7m (87.2)

` Operating profit increased 45.2 percent to SEK 98.9m (68.1)

` ARPL, average revenue per published listing, increased 32.5 percent to SEK 4,911 (3,706)

Net sales growth, %

33.3%

ARPL (average revenue per published listing) growth, % 32.5%

EBITDA-margin, % 47.2%

Operational highlights

Net sales for the first quarter increased 33.3 percent and amounted to SEK 253.4 million (190.1)
Average revenue per published listing (ARPL) increased 32.5 percent to SEK 4,911 (3,706). Increase driven mainly by continued growing interest for our value-added services and higher uptake of Hemnet Premium
EBITDA increased 37.3 percent to SEK 119.7 million (87.2) and the EBITDA margin increased to 47.2 percent (45.9)

Comments

Hemnet delivered strong results for the first quarter of the year, supported by growing demand for our value-added services for property sellers and an increase in the number of published listings. The increase in listings is connected to a generally higher activity in the market, with more transactions, increasing housing prices and a more positive sentiment among consumers, where the number of homebuyers expecting prices to increase or maintain is now at 56%, the highest since September 2020.

Revenue from property sellers increased by 49.1 percent, and ARPL increased by 32.5 percent. Sales of Hemnet Premium continued to increase and the growing demand led to a more than doubled conversion compared to the same period last year. In addition, the number of published listings increased 11 percent as a result of increased confidence in the housing market.

Real estate agents are Hemnet's most important partners and we are focused on building strong agent relations. Following last quarter's announcement on the update of the compensation and commission model, we have taken several initiatives to ensure a smooth transition, for real estate agent offices in particular, to the new model. We have also begun the gradual roll out of our fully digital flow that will simplify and streamline the buying and publication process for all property sellers and agents.

Many of our B2B customers, especially property developers, continue to be impacted by market uncertainties.This is reflected in lower sales of our display advertising products. The decline in revenue was partially offset by continued demand and revenue growth from our Hemnet unique B2B products.

During the quarter we have continued to improve the consumer experience on Hemnet, for example by improving our maps, updating app navigation and including energy classification for properties in the result list, nudging our visitors to consider environmental aspects when looking for a new home.

With 40 million monthly visits, Hemnet stands as Sweden's premier property platform, connecting the largest concentration of sellers and buyers to facilitate efficient property transactions. We are maintaining our market leadership through our commitment to our growth plan as we continue to invest in product development, enhancements in consumer and customer experience and in strengthened relationships with agents.

Cecilia Beck-Friis, CEO April 2024

Chief Executive's comments

	Jan-Mar			Last twelve months	FY
	2024	2023	Change	ending Mar 2024	2023
ARPL (average revenue per published listing), SEK	4,911	3,706	32.5%	4,748	4,490
Number of published listings, thousand	41.1	36.9	11.4%	179.6	175.3

Financial targets

Operational indicators

ARPL

The below graph shows Hemnets ARPL development during the last nine quarters, both as isolated quarters and on LTM basis.

Growth 15-20%

Hemnet aims to achieve annual net sales growth of 15–20 percent.

Hemnet aims to achieve an adjusted EBITDA margin exceeding 55 percent in the long term.

Hemnet aims to achieve a Net Debt to Adjusted EBITDA

Financial summary, January-March 2024

Net sales increased from a strong growth of average revenue per published listing (ARPL), and a higher number of published listings. Continued strong growth of value-added services have contributed to the increase in average revenue per published listing (ARPL). EBITDA increased 37.3 percent to SEK 119.7m (87.2).

Net sales and profit

Net sales increased by 33.3 percent to SEK 253.4m (190.1).

Net sales from property sellers increased by 49.1 percent to SEK 201.2 (134.9). Number of published listings increased by 11.4 percent compared to the same quarter last year. The sales of value-added services for property sellers continued to increase. Major driver is increased conversion for Hemnet Premium, with more than doubled conversion compared to the same period last year. This in combination with price adjustments across all products led to ARPL growing by 32.5 percent to SEK 4,911 (3,706).

Net sales from other customers decreased by 5.4 percent to SEK 52.2m (55.2). Display revenue decreased, mainly from other advertisers and real estate agents. Revenue from bankintegrations continued to increase along with revenue from value-added services to real estate agents, partly from our new products to help agents find sellers.

Capitalised development of employees was SEK 3.9m (3.4) and related to our continued investments in product development. Investments were made in new products for property sellers, as well as new products for real estate agents. A total of SEK 7.8m (8.6) was capitalised during the quarter.

Other external expenses increased by 37.5 percent to SEK 86.9m (63.2). SEK 60.1m (37.6) of other external expenses were administration and commission expenses to real estate agents, which increased by 59.8 percent because of increasing revenue from property sellers. The remaining part increased by 4.7 percent to SEK 26.8m (25.6) mainly related to higher costs for marketing but also licenses.

Personnel costs increased by 18.1 percent to SEK 50.9m (43.1), mainly a consequence of recruitment in 2023 and salary inflation.

EBITDA increased 37.3 percent to SEK 119.7m (87.2), corresponding to an EBITDA-margin of 47.2 (45.9) percent.

EBITDA

A Net sales

B Compensation to real estate agents
C Other external expenses excl. comp. to real estate agents
D Personnel costs
E Other

Depreciation & amortisation amounted to SEK 20.8m (19.1), whereof amortisation of intangible assets, mainly from the acquisition of Hemnet, amounted to SEK 17.4m (15.3) and depreciation of right-of-use assets amounted to SEK 2.8m (3.5).

Operating profit increased 45.2 percent to SEK 98.9m (68.1), corresponding to an operating margin of 39.0 (35.8) percent.

Net financial items deteriorated, from negative SEK 4.1m to negative SEK 7.6m, mainly due to higher interest costs on bank loans following higher market rates and increased borrowing. Interest costs on bank loans amounted to SEK 7.1m (3.4).

Tax expense for the period amounted to SEK 18.9m (13.3), corresponding to an effective tax rate of 20.7 (20.9) percent.

Net profit for the period increased by SEK 21.7m and amounted to SEK 72.4m (50.7).

Cash flow and financial position

Cash flow from operating activities increased by SEK 16.8m and amounted to SEK 90.5m (73.7). The change in working capital was negative at SEK -1.2m (+23.1). Taxes paid during the quarter amounted to SEK -20.6m (-32.8).

Cash flow from investing activities amounted to SEK -8.1m (-15.0) mainly related to capitalised development expenses of SEK -7.8m (-8.6), as well as -0.3m (-6.4) in investment in tangible assets.

Cash flow from financing activities totalled SEK -88.5m (-79.3), mainly as a result of share buybacks of SEK -115.7m and an increased utilisation of the credit facility of SEK +30.0m. Amortisation of lease liabilities resulted in a cash flow of SEK

-2.8m. During the same period last year, financing activities resulted in a cash flow of SEK -79.3m, mainly consisting of repurchase of own shares SEK -94.5m and an increased utilisation of the credit facility, net, of SEK +20.0m.

Cash and cash equivalents amounted to SEK 96.5m (102.6) and total interest-bearing liabilities amounted to SEK 568.2m (540.7). Net debt thus amounted to SEK 471.7m (438.1), which corresponds to 0.8 (0.8) times EBITDA for the last twelve months.

Total shareholders' equity amounted to SEK 1,216.3m (1,259.6), corresponding to an equity-to-assets ratio of 55.2 (58.4) percent.

Parent company, financial development January-March

Net sales of the Parent company amounted to SEK 1.9m (3.7). All revenue refers to services to other Group companies. Operating profit/loss was SEK -4.2m (-1.9).

The assets of the Parent company consist mainly of investments in Group companies and Group receivables.

The operations are financed by equity, bank loans and Group liabilities. The Parent company equity at the end of the period amounted to SEK 1,059.3m (1,186.5) and the equity ratio was 66.6 (70.0) percent.

Financial position

Historical development of the Group's net debt and net debt in relation to rolling twelve months adjusted EBITDA.

Other information

Current macro environment

There are a number of macro factors that can have an impact on Hemnet financial results. During the period, high mortgage interest rates continue to prevail, and also an uncertain security situation in the world. The market uncertainty and slower market has affected property transactions, but recent months have shown signs of a recovery with more published listings. The market uncertainty also affects Hemnets B2B customers who are reviewing their cost spend, not least the property developers who are making significant cost reductions.

Employees

The number of employees at the end of the period was 155 compared to 154 at the end of December 2023. The increase is primarily in the area of product development.

Repurchase and holding of treasury shares

The Annual General Meeting 2023 authorized the Board of Directors to cancel 2,780,428 shares repurchased in 2022- 2023, as well as on one or more occasions during the period until the next Annual General Meeting, decide on the repurchase of own shares to such an extent that the Company holds no more than ten (10) percent of all shares in the Company at any time after the acquisition. The maximum amount for repurchases during the period shall be SEK 450 million. Acquisitions shall be made on Nasdaq Stockholm at a price per share within the price interval registered at any

given time. The purpose of the authorization is to adjust the Company's capital structure by reducing the share capital. The Board of Directors therefore intends to propose to the Annual General Meeting 2024 that the repurchased shares be cancelled.

The repurchase program is implemented in accordance with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and Commission Delegated Regulation (EU) No 2016/1052 (the "Safe Harbour Regulation"). The repurchase program is managed by Carnegie Investment Bank AB (publ), which makes its trading decisions regarding the timing of the repurchases of Hemnet shares independently of Hemnet.

See further information in note 4.

Seasonality

Hemnet's sales and earnings are partly affected by seasonal fluctuations, mainly linked to vacation seasons and major holidays, as the number of listings and activity on Hemnets platforms tend to be lower during these periods than during other periods of the year. Seen over a financial year, the year begins with low volumes that gradually increase until the summer months where volumes decrease to lower levels and then increase again after the summer holiday period, before they decrease again ahead of the Christmas holidays.

Overall, the first quarter in particular tends to be weaker seasonally, both in terms of sales and earnings, while the second quarter tends to be the strongest.

Average revenue per published listing, ARPL, is affected by certain seasonal effects. Listing revenue and revenue from listing related value-added services is, in accordance with IFRS, recognised over the average duration of a listing on Hemnet. The effect is that quarters that are preceded by a month with a high volume of listings and value-added services benefit. Historically, March and September have been such months with high volume of listings, giving a positive contribution to revenue and ARPL in the following month and therefore the second and the fourth quarter respectively.

Risks and uncertainties

Hemnet is through its operations exposed to risks and uncertainties. The income from listing fees is a significant part of sales. Hemnet's operations are therefore dependent on an efficient, well-functioning housing market with high mobility. Hemnet's advertising business has continued to develop positively, and we offer advertising both through direct sales and through programmatic trading. The development and trends for advertising purchases in the market can affect Hemnet's revenue both positively and negatively. For Hemnet, it is of great importance to have a good relationship with the real estate agents and to have a substantial range of listings. Hemnet's future business may be threatened if a deteriorating agent relationship would result in a reduction in the number of listings.

In addition to its own funds, the Group´s operations are also financed through borrowing. As a result, the business is exposed to financing risks and interest rate risk. The Group's overall risk management policy focuses on the unpredictability of the financial markets and strives to minimise potential adverse effects on the Group's financial results.

For a detailed description of the risk factors and how they are managed, please refer to Hemnet's Annual Report 2023, page 62-63. Hemnet's assessment is that no other significant risks or uncertainties have arisen during the period.

About Hemnet

Hemnet operates the leading property platform in Sweden. The Company emerged as an industry initiative in 1998 and has since transformed into a "win-win" value proposition for the housing market. By offering a unique combination of relevant products, insights and inspiration, Hemnet has built lasting relationships with buyers, sellers, and agents for more than 20 years. Hemnet shares a mutual passion for homes with its stakeholders and is driven by being an independent go-to-place for people to turn to for the various housing needs that arise through life. This is mirrored in the Company's vision to be the key to your property journey, supplying products and services to improve efficiency, transparency and mobility on the housing market.

The key to your property journey

We increase efficiency, transparency and mobility on the housing market.

Cecilia Beck-Friis CEO

Anders Edmark Member of the board

Tracey Fellows Member of the board

Håkan Hellström Member of the board

Maria Redin Member of the board

Nick McKittrick Member of the board

Pierre Siri Member of the board

This report has not been subject to a review by Hemnet's auditor.

Stockholm, 23 April, 2024 Hemnet Group AB (publ)

Anders Nilsson Chair

Condensed consolidated income statement

	Jan-Mar		Last twelve months	FY
(SEK million)	2024	2023	ending Mar 2024	2023	(SEK million)	2024-03-31	2023-03-31	2023-12-31
Net sales 2	253.4	190.1	1,068.0	1,004.7	ASSETS
Other operating income	0.6	0.4	2.9	2.7	Goodwill	902.8	902.8	902.8
Total revenue	254.0	190.5	1,070.9	1,007.4	Customer relationships	690.1	745.5	703.9
					Right-of-use assets	42.4	53.7	45.2
Capitalised development	3.9	3.4	13.5	13.0	Other non-current assets	296.5	276.6	292.5
					Total non-current assets	1,931.8	1,978.6	1,944.4
Other external expenses 3	-86.9	-63.2	-347.4	-323.7
Personnel costs	-50.9	-43.1	-177.4	-169.6	Accounts receivables	48.1	35.0	38.3
Depreciation & amortisation	-20.8	-19.1	-79.0	-77.3	Other current assets	128.6	29.1	70.7
Other operating costs	-0.4	-0.4	-1.6	-1.6	Cash and cash equivalents	96.5	79.8	102.6
Total operating expenses	-159.0	-125.8	-605.4	-572.2	Total current assets	273.2	143.9	211.6
Operating profit	98.9	68.1	479.0	448.2	TOTAL ASSETS	2,205.0	2,122.5	2,156.0
Net financial Items	-7.6	-4.1	-24.3	-20.8
Profit before taxes	91.3	64.0	454.7	427.4	EQUITY AND LIABILITIES
					Total equity (attributable to controlling interest) 4	1,216.3	1,388.9	1,259.6
Income tax	-18.9	-13.3	-94.3	-88.7
Net profit for the period	72.4	50.7	360.4	338.7	Liabilities to credit institutions	527.4	348.8	497.1
Net profit attributable to controlling interest	72.4	50.7	360.4	338.7	Lease liabilities	32.7	43.9	35.5
					Deferred tax liabilities	201.7	208.8	203.7
Other comprehensive income	-	-	-	-	Total non-current liabilities	761.8	601.5	736.3
Total comprehensive income	72.4	50.7	360.4	338.7
					Lease liabilities	8.1	7.8	8.1
Earnings per share					Accrued expenses and deferred income	164.4	96.7	110.9
before dilution, SEK	0.75	0.51	3.71	3.48	Other current liabilities	54.4	27.6	41.1
after dilution, SEK	0.75	0.51	3.71	3.48	Total current liabilities	226.9	132.1	160.1
					Total liabilities	988.7	733.6	896.4
Number of shares
Average before dilution	96,339,549	98,578,024	97,084,248	97,371,470	TOTAL EQUITY AND LIABILITIES	2,205.0	2,122.5	2,156.0
Average after dilution	96,689,048	98,590,378	97,276,206	97,474,069
At period end	96,146,181	98,236,929	96,146,181	96,535,933	¹The calculation of dilution of shares is made based on the number of days that the warrant programmes that have been active during each respective period.

¹The calculation of dilution of shares is made based on the number of days that the warrant programmes that have been active during each respective period.

Condensed consolidated statement of financial position

Condensed consolidated statement of changes in equity Condensed consolidated statement of cash flow

		Jan-Mar			Jan-Mar		FY
(SEK million)	2024	2023	2023	(SEK million)	2024	2023	2023
Equity, opening balance	1,259.6	1,432.7	1,432.7	Operating activities
Net profit for the period	72.4	50.7	338.7	Operating profit	98.9	68.1	448.2
Other comprehensive income	-	-	-	Adjustments for non-cash items	20.8	19.1	77.3
				Interest paid and received	-7.4	-3.8	-22.2
Total comprehensive income	72.4	50.7	338.7	Paid income tax	-20.6	-32.8	-103.2
				Cash flow from operating activities before changes in working capital	91.7	50.6	400.1
Dividend distribution	-	-	-98.0
Repurchase of shares Warrant issues	4 -115.7 -	-94.5 -	-418.4 5.0	Changes in working capital, net	-1.2	23.1	-4.2
Warrant redemption	-	-	-0.4	Cash flow from operating activities	90.5	73.7	395.9
Total transactions with shareholders	-115.7	-94.5	-511.8
Equity, closing balance	1,216.3	1,388.9	1,259.6	Investing activities
				Investments in intangible assets	-7.8	-8.6	-31.5
				Investments in tangible assets	-0.3	-6.4	-7.3
				Cash flow from investing activities	-8.1	-15.0	-38.8
				Financing activities
				Borrowings	30.0	35.0	185.0
				Repayment of loans	-	-15.0	-15.0
				Amortisation of lease liabilities	-2.8	-4.8	-13.0
				Issue of warrants	-	-	5.0
				Warrant redemption	-	-	-0.4
				Repurchase of shares 4	-115.7	-94.5	-418.5
				Paid dividend	-	-	-98.0
				Cash flow from financing activities	-88.5	-79.3	-354.9
				Net change in cash and cash equivalents	-6.1	-20.6	2.2
				Cash and cash equivalents, beginning of period	102.6	100.4	100.4
				Cash and cash equivalents, end of period	96.5	79.8	102.6

Condensed parent company income statement Condensed parent company balance sheet

Parent company statement of comprehensive

	Jan-Mar		FY
(SEK million)	2024	2023	2023	(SEK million)	2024-03-31	2023-03-31	2023-12-31
Net sales	1.9	3.7	8.9	ASSETS
Total revenue	1.9	3.7	8.9	Non-current assets	1,558.4	1,526.4	1,678.4
				Current assets	32.7	46.3	17.4
Other external costs	-2.5	-1.9	-7.5	TOTAL ASSETS	1,591.1	1,572.7	1,695.8
Personnel costs	-3.6	-3.7	-11.4
Total operating expenses	-6.1	-5.6	-18.9	EQUITY AND LIABILITIES
Operating profit/loss	-4.2	-1.9	-10.0	Equity
				Restricted equity	77.4	77.4	77.4
Profit/loss from shares in group companies	-	-	382.9	Non-restricted equity	981.9	772.3	1,109.1
Net financial items	-7.3	-3.7	-22.2	Total equity	1,059.3	849.7	1,186.5
Appropriations - Group contributions received	-	-	492.7
Profit before taxes	-11.5	-5.6	843.4	Non-current liabilities	527.4	348.8	497.2
				Current liabilities	4.4	374.2	12.1
Income tax	-	-	-94.9	Total liabilities	531.8	723.0	509.3
Net income (loss)	-11.5	-5.6	748.5	TOTAL EQUITY AND LIABILITIES	1,591.1	1,572.7	1,695.8

	Jan-Mar	FY
(SEK million)	2024	2023	2023
Net income (loss)	-11.5	-5.6	748.5
Other comprehensive income	-	-	-
Total comprehensive income for the period	-11.5	-5.6	748.5

Notes

Note 1 Accounting principles

The Parent company, Hemnet Group AB (publ), applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation (RFR 2). accounting for legal entities. The accounting principles are consistent with those of the previous year and, where applicable, with the Group's accounting principles.

Amounts are expressed in SEK million unless stated otherwise. Amounts and figures in brackets refer to comparative figures for the corresponding period last year. In some cases roundings have been made, which means that tables and calculations do not always sum up exactly.

This report has been prepared in accordance with IAS 34, Interim Financial Reporting, International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Interpretation Statements of the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the EU. The Group applies the same accounting principles as described in Note 1 in the annual report for 2023 and no new or IFRS or IFRIC interpretations that have not yet come into force are expected to have a material impact on the Group. Net sales from external customers by customer category and service category: Net sales by customer category Last twelve (SEK million) ²⁰²⁴ ²⁰²³ ending March Jan-Mar

Note 2 Net sales

Revenues are in their entirety attributable to services rendered to private individuals and companies. Property sellers revenue consists of sales to consumers, while Real estate agents, Real estate developers and Advertisers represent sales to business customers. Revenue is recognized over time as performance obligations are fulfilled. The revenues are almost entirely attributable to Swedish customers.

Net sales by customer category	Jan-Mar		Last twelve month	FY
(SEK million)	2024	2023	ending March 2024	2023
Property sellers	201.2	134.9	848.1	781.8
Real estate agents	27.0	27.5	109.9	110.4
Real estate developers	9.3	9.7	36.3	36.7
Advertisers	15.9	18.0	73.7	75.8
Total net sales	253.4	190.1	1,068.0	1,004.7

Net sales by service category	Jan-Mar		Last twelve month	FY
(SEK million)	2024	2023	ending March 2024	2023
Listing services	208.0	142.0	874.7	808.7
Other services	45.4	48.1	193.3	196.0
Total net sales	253.4	190.1	1,068.0	1,004.7

Note 3 Other external expenses

Note 4 Repurchase program and treasury shares

During the quarter 389,752 shares were repurchased for a total of SEK 115.7m, excluding transaction costs, under the 2023/2024 Share repurchase program of SEK 450 million. Under the 2023/2024 Share repurchase program, a total of 1,870,748 shares have been repurchased for a total amount of SEK 402.9m, excluding transaction costs. The total number of treasury shares at the end of the quarter thus amounts to 2,204,869. The number of shares outstanding, excluding treasury shares, as of 31March, 2024, is 96,146,181. The total number of shares in the Company is 98,351,050.

Note 5 Financial instruments

Administration and commission compensation refers to compensation to real estate agent offices regarding administration of property listings on Hemnet's platform and, for real estate agent offices having entered into a commission agreement regarding sale of Hemnet's value-added services, commission. No material events have occurred after the reporting period which have had a material impact on the operation or assumptions and assessments used in preparation of this report.

Hemnet's financial instruments consist mainly of accounts receivables, other current receivables, liabilities to credit institutions, accounts payable and accrued expenses.

Liabilities to credit institutions carries a floating interest that is estimated in all material respects to correspond to current market rate, whereby fair value is deemed to approximately correspond to booked value adjusted for accrued borrowing costs. For other financial assets and liabilities, their book values are an approximation of fair value, why these items are not split according to the fair value hierarchy.

Note 6 Related party transactions

Transactions with related parties and management incentive program are described in notes G27 and G8 in the annual report for 2023.

In other respects, the scope and focus of these transactions did not change significantly during the period.

Note 7 Significant events after the end of the period

	Jan-Mar		Last twelve month	FY
(SEK million)	2024	2023	ending March 2024	2023
Administration and commission compensation	-60.1	-37.6	-247.8	-225.3
Other external expenses	-26.8	-25.6	-99.6	-98.4
Total	-86.9	-63.2	-347.4	-323.7

(SEK million, unless stated otherwise)	2024	2023	ending March 2024	2023
EBITDA	119.7	87.2	558.0	525.5
EBITDA margin, %	47.2%	45.9%	52.2%	52.3%
Operating profit	98.9	68.1	479.0	448.2
Operating margin, %	39.0%	35.8%	44.9%	44.6%
Net profit for the period	72.4	50.7	360.4	338.7
Profit margin, %	28.6%	26.7%	33.7%	33.7%
Earnings per share, basic, SEK	0.75	0.51	3.71	3.48
Earnings per share, diluted, SEK	0.75	0.51	3.71	3.48
ARPL (average revenue per published listing), SEK	4,911	3,706	4,748	4,490
Net debt	471.7	320.7	471.7	438.1
Net debt/EBITDA (LTM), times	0.8	0.7	0.8	0.8
Debt/Equity ratio, times	0.5	0.3	0.5	0.4
Equity/Assets ratio, %	55.2%	65.4%	55.2%	58.4%
Cash conversion, %	89.2%	97.7%	89.2%	91.8%
Number of published listings during the period, thousand	41.1	36.9	179.6	175.3
Number of employees at period end	155	141	155	154

Jan-Mar	Last twelve months	FY

* See pages 15-17 for derivation and definitions.

Group key ratios

Derivation of alternative performance measures

Certain statements and analyses presented in this interim report include alternative performance measures (APMs) that are not defined by IFRS. The company believes that this information, together with comparable defined IFRS metrics, are useful to investors as they provide a basis for measuring operating profit and ability to repay debt and invest in operations. Corporate management use these financial measurements, along with the most directly comparable financial metrics under IFRS, to evaluate operational results and value added. The APMs should not be assessed in isolation from, or as a substitute for, financial information presented in the financial statements in accordance with IFRS. The APMs reported need not necessarily be comparable to similar metrics presented by other companies. The reconciliations are presented in the tables below.

	Jan-Mar		Last twelve months	FY
(SEK million, unless stated otherwise)	2024	2023	ending March 2024	2023
Operating profit	98.9	68.1	479.0	448.2
Depreciation & amortisation	20.8	19.1	79.0	77.3
EBITDA	119.7	87.2	558.0	525.5
Net sales	253.4	190.1	1,068.0	1,004.7
EBITDA margin, %	47.2%	45.9%	52.2%	52.3%

EBITDA	119.7	87.2	558.0	525.5
Adjusted EBITDA	119.7	87.2	558.0	525.5
Net sales	253.4	190.1	1,068.0	1,004.7
Adjusted EBITDA margin, %	47.2%	45.9%	52.2%	52.3%

Operating profit	98.9	68.1	479.0	448.2
Net sales	253.4	190.1	1,068.0	1,004.7
Operating margin, %	39.0%	35.8%	44.9%	44.6%

		Jan-Mar	Last twelve months	FY
(SEK million, unless stated otherwise)	2024	2023	ending March 2024	2023
Net sales	253.4	190.1	1,068.0	1,004.7
Revenue not arising from published listings	-51.5	-53.4	-215.5	-217.4
Revenue from published listings	201.9	136.7	852.5	787.3
Number of published listings, thousands	41.1	36.9	179.6	175.3
ARPL, SEK	4,911	3,706	4,748	4,490
Non-current interest-bearing liabilities	560.1	392.7	560.1	532.6
Current interest-bearing liabilities	8.1	7.8	8.1	8.1
Cash and cash equivalents, including current inter est-bearing securities	96.5	79.8	96.5	102.6
Net debt	471.7	320.7	471.7	438.1
EBITDA, LTM	558.0	449.8	558.0	525.5
Net debt/ LTM EBITDA, times	0.8	0.7	0.8	0.8
Equity	1,216.3	1,388.9	1,216.3	1,259.6
Total assets	2,205.0	2,122.5	2,205.0	2,156.0
Equity/Assets ratio, %	55.2%	65.4%	55.2%	58.4%
Non-current interest-bearing liabilities	560.1	392.7	560.1	532.6
Current interest-bearing liabilities	8.1	7.8	8.1	8.1
Total interest-bearing liabilities	568.2	400.5	568.2	540.7
Equity	1,216.3	1,388.9	1,216.3	1,259.6
Debt/Equity ratio, times	0.5	0.3	0.5	0.4
Adjusted EBITDA, LTM	558.0	449.8	558.0	525.5
Decrease / (Increase) in net working capital, LTM	-28.5	16.0	-28.5	-4.2
Capital expenditures, LTM	-31.9	-26.5	-31.9	-38.8
Free cash flow, LTM	497.6	439.3	497.6	482.5
Adjusted EBITDA, LTM	558.0	449.8	558.0	525.5
Cash conversion, %	89.2%	97.7%	89.2%	91.8%

Definitions

Alternative Performance Measures (APMs) are financial measures of historical or future financial performance, financial position or cash flows that are not defined in applicable accounting regulations (IFRS). These measures are not directly comparable to similar key ratios presented by other companies.

Average revenue per published listing, calculated as revenue from home sellers published listings including related value-added products during the period, in relation to the number of published listings during the period.

This measure enables comparison of profitability over time, regardless of depreciation of tangible and right-of-use assets as well as amortisation of intangible assets, and independent of taxes and the company's financing structure. The measure is also adjusted

The measure reflects the business's operating profitability before depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. The measure is an important component, together with net sales growth, to follow the company's value creation. The measure is also adjusted for the impact of items affecting comparability to increase comparability over time.

Alternative key ratio	Definition
ARPL (average revenue per published listing)	products during the period, in relation to the number of published listings during the period. It is a measure that shows the company's earning capacity per published listing.
Adjusted EBITDA	EBITDA adjusted for items affecting comparability. for the impact of items affecting comparability to increase comparability over time.
Adjusted EBITDA-margin	Adjusted EBITDA in relation to net sales.
Cash conversion	with the exception of interest-related cash flows.
Debt/Equity ratio	Interest-bearing liabilities in relation to total equity.
EBITDA (earnings before interest, taxes, depreciation and amortisation)

Free cash flow in relation to adjusted EBITDA. Free cash flow is defined as adjusted EBITDA, adjusted for changes in working capital and reduced with investments in tangible and intangible assets. The measure is always calculated for the last twelve month period.

This measure shows the percentage of profit that is converted into cash flow. The purpose is to analyse what percentage of earnings can be converted into cash and cash equivalents and, in the longer term, the opportunity for investments, acquisitions and dividends,

The measure shows the relation between the Company's two forms of financing. The measure shows how large a share the debt financing has in relation to the owners' invested capital. The measure reflects the financial strength, but also the leverage effect of the debt. A higher debt/equity ratio means a higher financial risk and a higher financial leverage on invested capital.

Operating profit plus depreciation of tangible and right-of-use assets as well as amortisation of intangible assets.

The measure enables comparison of profitability over time, regardless of depreciation of tangible and right-of-use assets as well as amortisation of intangible assets, as well as independent of taxes and the company's financing structure.

The measure reflects the Company's financial position. A high equity/assets ratio provides a readiness to be able to handle periods of weak economic growth. At the same time, a higher equity/assets ratio creates a lower financial leverage.

Alternative key ratio	Definition
EBITDA-margin	EBITDA in relation to net sales. The measure reflects the business's operating profitability before depreciation of tangible and right-of-use assets as well as amortisation of intangible assets. The measure is an important component, together with net sales growth, to follow the company's value creation.
Equity/Assets ratio	Total equity in relation to total assets. The measure reflects the Company's financial position. A high equity/assets ratio provides a readiness to be able to handle periods of weak economic growth. At the same time, a higher equity/assets ratio creates a lower financial leverage.
Interest-bearing liabilities	Interest-bearing liabilities consists of debt to credit institutions and leasing debt.
Items affecting comparability	Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities. A separate disclosure of items affecting comparability clarifies the development of the underlying business.
Net financial items	Financial income less financial expenses. The measure reflects the company's financial activities.
Net debt	Interest-bearing liabilities less cash and cash equivalents and current interest-bearing securities. Net debt is a measure used to follow the development of debt and the size of the refinancing need. Since cash and cash equivalents can be used to pay off debt at short notice, net debt is used instead of gross debt as a measure of the total loan financing.
Net debt/EBITDA Net debt/adjusted EBITDA	Interest-bearing liabilities less cash and cash equivalents and current interest-bearing securities in relation to EBITDA or adjusted EBITDA. The measure is a debt ratio that shows how many years it would take to pay off the company's debt, provided that its net debt and EBITDA or adjusted EBITDA are constant and without taking into account the cash flows regarding interest, taxes and investments.
Operating margin	Operating profit/loss in relation to net sales. The measure reflects the operational profitability of the business. The measure is an important component, together with net sales growth, to follow the company's value creation.
Operating profit/loss	Total revenue less total operating expenses. The measure indicates the company's operation profit/loss before financing and taxes and is used to measure the profit generated by operating activities.
Profit margin	Net profit in relation to net sales. The measure indicates the company's profit after financing and taxes and is used to measure the profit generated by operating activities.

Net debt is a measure used to follow the development of debt and the size of the refinancing need. Since cash and cash equivalents can be used to pay off debt at short notice, net debt is used instead of gross debt as a measure of the total loan financing.

Interest-bearing liabilities less cash and cash equivalents and current interest-bearing securities in relation to EBITDA or adjusted EBITDA.

The measure is a debt ratio that shows how many years it would take to pay off the company's debt, provided that its net debt and EBITDA or adjusted EBITDA are constant and without taking into account the cash flows regarding interest, taxes and investments.

The measure reflects the operational profitability of the business. The measure is an important component, together with

The measure indicates the company's operation profit/loss before financing and taxes and is used to measure the profit

The measure indicates the company's profit after financing and taxes and is used to measure the profit generated by operating activities.

(SEK million)	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	179.6	269.7	238.9	201.0	190.1	267.6	272.0	275.0	253.4
Other operating income	0.5	0.8	0.7	0.6	0.4	0.8	0.7	0.8	0.6
Total revenue	180.1	270.5	239.6	201.6	190.5	268.4	272.7	275.8	254.0
Capitalised development	2.5	2.9	1.3	3.3	3.4	2.3	3.2	4.1	3.9
Other external costs	-59.0	-86.8	-79.2	-74.0	-63.2	-85.2	-82.5	-92.8	-86.9
Personnel costs	-37.8	-41.0	-32.7	-41.7	-43.1	-44.4	-37.0	-45.1	-50.9
Other operating expenses	-0.3	-0.3	-0.5	-0.4	-0.4	-0.4	-0.4	-0.4	-0.4
EBITDA	85.5	145.3	128.5	88.8	87.2	140.7	156.0	141.6	119.7
Depreciation & amortisation	-17.7	-17.8	-17.6	-17.5	-19.1	-19.0	-19.1	-20.1	-20.8
Operating profit	67.8	127.5	110.9	71.3	68.1	121.7	136.9	121.5	98.9
Net financial items	-1.6	-1.2	-1.4	-2.6	-4.1	-5.7	-7.4	-3.6	-7.6
Profit before taxes	66.2	126.3	109.5	68.7	64.0	116.0	129.5	117.9	91.3
Taxes	-13.7	-26.3	-22.7	-14.2	-13.3	-24.1	-26.7	-24.6	-18.9
Net profit for the period	52.5	100.0	86.8	54.5	50.7	91.9	102.8	93.3	72.4
Other comprehensive income	-	-	-	-	-	-	-	-	-
Total comprehensive income for the period	52.5	100.0	86.8	54.5	50.7	91.9	102.8	93.3	72.4

2022			2024

Consolidated quarterly financial information

The table below presents the Group's condensed financial performance for the last nine quarters.

	2022				2023				2024
(SEK million, unless stated otherwise)	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	179.6	269.7	238.9	201.0	190.1	267.6	272.0	275.0	253.4
Net sales growth YoY, %	26.0%	26.9%	22.0%	13.4%	5.8%	-0.8%	13.9%	36.8%	33.3%
EBITDA	85.5	145.3	128.5	88.8	87.2	140.7	156.0	141.6	119.7
EBITDA margin, %	47.6%	53.9%	53.8%	44.2%	45.9%	52.6%	57.4%	51.5%	47.2%
Adjusted EBITDA	85.5	145.3	128.5	88.8	87.2	140.7	156.0	141.6	119.7
Adjusted EBITDA margin, %	47.6%	53.9%	53.8%	44.2%	45.9%	52.6%	57.4%	51.5%	47.2%
Adjusted EBITDA-growth, %	49.5%	31.0%	25.6%	5.0%	2.0%	-3.2%	21.4%	59.5%	37.3%
Operating profit	67.8	127.5	110.9	71.3	68.1	121.7	136.9	121.5	98.9
Operating margin, %	37.8%	47.3%	46.4%	35.5%	35.8%	45.5%	50.3%	44.2%	39.0%
Net profit for the period	52.5	100.0	86.8	54.5	50.7	91.9	102.8	93.3	72.4
Profit margin, %	29.2%	37.1%	36.3%	27.1%	26.7%	34.3%	37.8%	33.9%	28.6%
Earnings per share, basic, SEK	0.52	0.99	0.87	0.55	0.51	0.94	1.06	0.96	0.75
Earnings per share, diluted, SEK	0.52	0.99	0.87	0.55	0.51	0.94	1.05	0.96	0.75
ARPL (average revenue per published listing), SEK	2,681	3,163	3,404	4,044	3,706	4,138	4,353	5,911	4,911
Net debt	121.5	77.9	175.1	228.1	320.7	391.5	388.2	438.1	471.7
Net debt/EBITDA LTM, times	0.3	0.2	0.4	0.5	0.7	0.9	0.8	0.8	0.8
Net debt/ Adjusted EBITDA (LTM), times	0.3	0.2	0.4	0.5	0.7	0.9	0.8	0.8	0.8
Debt/Equity ratio, times	0.1	0.1	0.2	0.2	0.3	0.4	0.4	0.4	0.5
Equity/Assets ratio, %	73.8%	72.5%	67.7%	68.4%	65.4%	58.5%	57.6%	58.4%	55.2%
Cash conversion, %	101.8%	102.5%	103.8%	98.4%	97.7%	98.5%	100.0%	91.8%	89.2%
Number of published listings during the period, thousand	45.7	64.5	52.2	35.8	36.9	50.6	50.1	37.7	41.1
Number of employees at period end	121	121	124	135	141	148	154	154	155

Group key ratios by quarter

Hemnet Interim report Q1

Financial calendar

25 April, 2024 Annual general meeting 2024 18 July, 2024 Quarterly report, Q2 2024 24 October, 2024 Quarterly report, Q3 2024

Presentation of the interim report

Hemnet invites analysts, investors and media to participate in the results presentation of the first quarter on 23 April, 2024 at 10:00 CET. The results will be presented by CEO Cecilia Beck-Friis and CFO Anders Örnulf. The presentation will be held in English, followed by a Q&A session. Participants are welcome to join via the link or phone, see details below.

If you wish to participate via webcast please use the link below. Via the webcast you are able to ask written questions.

https://ir.financialhearings.com/hemnet-q1 report-2024

If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

https://conference.financialhearings.com/ teleconference/?id=50048618

Publication

This is information that Hemnet Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 23 April, 2024 at 08:00 CET.

For further information, please contact:

CFO Anders Örnulf Phone: +46 727 32 10 12 Email: [email protected]

IR Manager Nick Lundvall Phone: +46 761 45 21 78 Email: [email protected]

Address

Sveavägen 9 111 57 Stockholm

Contact

Email: [email protected] https://www.hemnetgroup.se