Scout24 AG — Call Transcript 2021

May 12, 2021

Q1 2021 Results Analyst Call, 12 May 2021

Tobias Hartmann (CEO) Dirk Schmelzer (CFO)

Disclaimer

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Quarterly figures are unaudited.

We saw strong momentum in Q1 2021

Executing our strategic agenda: From Classifieds to Ecosystem!

Delivering growth against a strong Q1 2020 across all relevant KPIs

Our transition towards full transaction monetisation is working …

Breakdown of ImmoScout24 revenue streams

(without Austria, without FLOWFACT, including IV24 since H2 2020)

Product examples

Realtor Lead Engine (incl. immoverkauf24) Mortgage Leads Relocation Leads

TenantPlus (Mieter+) BuyerPlus (Käufer+) LandlordPlus (Vermieter+)

Membership editions (Residential + Business; including OTP)

Private PPA Professional PPA (including OTP)

• Our goal is to be THE leading digital ecosystem for real estate transactions in Germany.

• IS24 is more than just a place for listing or searching for real estate.
• Our revenue mix is shifting from oneoff listings to recurring subscription revenues with agents & consumers (Q1 2019: 67%, Q1 2020: 69%, Q1 2021: 71%) and leads revenues.
• Leads revenues pushed by RLE.
• Q1 2021 was the first quarter where free-to-list revenue decline was over-compensated by consumer Plus-products.

5 FY 2020 Results Call | May 2021

… and will be accelerated by the acquisition of Vermietet.de – taking the rent journey to the next level

Rent Journey Product Suite

Property Manager memberships

Accelerated by the acquisition of Vermietet.de

Acquisition of Vermietet.de

• Market leading digital platform for private landlords.
• Comprehensive cloud product to manage all property related processes.
• Connecting landlords, rent-seekers and consumers in a seamless way to offer a consistent tenancy journey.
• A few hundred thousand registered rental objects.
• Same target customer base as IS24, which will benefit from first synergies by the end of 2021.
• Berlin-based team with approx. 70 employees.

We managed to strongly grow our Residential Real Estate revenues

Q1 2021 IS24 revenue: €93.7m (+5.1%)

64.6% 61.3%

Q1 2021 IS24 oo EBITDA margin: 61.3% (-3.3pp)

7 Q1 2021 Results Call | May 2021

Our focus is on migrating our customers into the new membership editions; pricing and ARPU will follow once the migration is completed

	Q1 2021	Q1 2020	+/-
Residential real estate partners Residential agents and property managers, finance partners (# of core customers1 end of period)	17,474	16,680	+4.8%
Residential real estate partner ARPU2 (€/month)	737	729	+1.1%
Business real estate partners Commercial agents, project developers, new home builders (# of core customers1 end of period)	2,804	2,748	+2.0%
Business real estate partner ARPU2 (€/month)	1,758	1,811	-2.9%

1 Customers with an existing 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 Q1 cost base reflects the shift towards a more diversified revenue base Capitalisation rate (own work

(€m)	Q1 2021	Q1 2020	+/-
Revenues	93.8	89.1	+5.2%
Own work capitalised	5.6	5.4	+4.1%
Personnel	-20.1	-17.3	+16.6%
Marketing	-8.0	-8.3	-2.6%
IT	-3.9	-4.0	-2.7%
Other operating costs	-12.2	-9.9	+24.0%
Total operating effects	-44.3	-39.4	+12.5%
ooEBITDA	55.1	55.1	-0.1%
ooEBITDA-margin	58.7%	61.8%	-3.1pp

capitalised) stable at 6% of revenues reflecting continued focus on product innovation.

• Personnel costs increased due to IV24 integration, post carve-out dissynergies and growth in FTEs.
• Certain online marketing costs reclassified as selling costs; additional marketing activities of IV24 and IS24.

Other operating costs mainly affected by

• growth in external labour due to investments in FLOWFACT,
• increased selling costs linked to growth in lead and consumer subscription revenues.

Q1 2021 operating effects include dis-synergies of €0.7m.

Q1 2021 Results Call | May 2021 9

Stable ooEBITDA drops through to "reported" earnings

(€m)	Q1 2021	Q1 2020	+/-
Ordinary operating EBITDA	55.1	55.1	-0.1%
Non-operating items	-2.8	-2.5	+9.9%
Reported EBITDA	52.3	52.6	-0.6%
D&A	-13.3	-12.8	+4.2%
EBIT	39.0	39.8	-2.1%
Financial result	-3.6	-6.4	-44.0%
Earnings before Tax	35.4	33.4	+6.0%
Taxes on Income	-10.9	-6.8	+61.9%
Net income (continued operations)	24.4	26.6	-8.2%
Basic (continued operations) EPS	0 25	0 25	+0 0%
Weighted shares (million) # av	97 8	104 9	-6 7%

Increase in non-operating items mainly due to higher share-based compensation in Q1 2021.

• D&A above previous year driven by higher depreciation of right-of-use assets from leases.
• Investment of AS24 proceeds in special securities fund reflected in improved financial result.
• Net income from continuing operations slightly down due to increased income tax expenses.
• Basic EPS for continued operations stable at €0.25.

We made good progress in returning the proceeds from the AutoScout24 transaction to our shareholders

*) Buyback volume per 7 May 2021: €83.2m

We are updating our 2021 outlook: slightly higher (mid-to-high single-digit) Group revenue growth at up to 60% ooEBITDA margin

	Residential Real Estate	Business Real Estate	Media & Other
	Old: Mid-to-high single-digit New: Low double-digit	Old: Low single-digit New: Low single-digit	Old: Slightly declining New: Slightly declining
2021E • Revenue outlook • (% growth) • • • Declining	Agent migration and upgrades Stronger focus on ARPU in H2 Enhanced leads product with IV24 Growing consumer subscriptions private PPA revenues	• Pandemic-induced uncertainty in H1 • Improvement expected in H2 • New and enhanced products	• Shift towards inhouse-agency • Growth of IS24 Austria • FLOWFACT Cloud & ScoutManager migration
2021E ooEBITDA outlook		Old: Around 60% New: Up to 60%

Q&A

Next events:

8 July 2021: AGM 12 August 2021: H1 2021 results

Ursula Querette Head of Investor Relations | Tel +49 89 262 02 4939 | ir@scout24.com

14 Q1 2021 Results Call | May 2021