Scout24 AG — Call Transcript 2022

Aug 9, 2022

1

Tobias Hartmann (CEO) Dirk Schmelzer (CFO)

Analyst Call, 9 August 2022 | © Scout24 Investor Relations

Disclaimer

This document has been issued by Scout24 SE (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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Nothing in this document constitutes tax advice. Persons should seek tax advice from their own consultants or advisors when making investment decisions.

Please note that due to other rounding methods, growth rates can differ to the H1 report.

The H1 2022 figures have been subject to a review by the auditor.

Scout24 is well positioned

to navigate changing market conditions

• German real estate market dynamics changing
• Relevance of Immoscout24 platform, marketing power and product suite increasing
• Scout24 highly resilient to macro uncertainty
• Strong growth in Q2 2022 – testament to our "next level strategy"
• Raising guidance for FY 2022

German real estate market dynamics are changing

Buyers are faced with …

• Rising interest rates
• Higher mortgage scrutiny

Sellers are facing …

• Longer time to close sale
• Less buyers

Renters are facing …

• Scarcity of supply
• Increasing (and uncertain) ancillary energy costs

Agents need …

• Marketing power
• High quality leads

Scout24's value-add product suite addresses these challenges

4

Strong Q2 2022 KPIs …

Group €109.7m +14.4% Group revenue	€62.0m +12.5% Group ordinary operating EBITDA (56.6% margin)	€62.5m +13.3% Organic Group ooEBITDA at 57.4% margin (excl. completed M&A)
Professional €63.5m +8.6% Subscription revenue	20,947 +2.2% Professional Customers	€1,011 +6.3% ARPU with professional customers
Private €14.8m +58.8%	297,089 +56.9%	€16.6 +1.2%

Private customers

ARPU with private customers

5 Q2 2022 Results | August 2022 Note: Q2 2022 KPIs; %age of change vs Q2 2021

Subscription revenue

… validate our strategic growth levers and targets

6 Q2 2022 Results | August 2022

All three segments contribute to the strong Q2 2022 momentum

Professional segment performance is driven by growth in subscriptions

(€m)	Q2 2022	Q2 2021	+/-
Professional Segment Revenue	71.5	65.2	+9.6%
of which Subscriptions	63.5	58.5	+8.6%
thereof Membership	54.2	50.3	+7.7%
thereof Seller Leads	9.3	8.2	+13.8%
Customers (period # average)	20 947 ,	20 504 ,	+2 2%
Resulting ARPU (in €)	1 011 ,	951	+6 3%
of which PPA	3.6	3.0	+20.1%
of which Other (Mortgage)	4.3	3.7	+15.9%
ooEBITDA Professional Segment	43.6	42.1	+3.6%
ooEBITDA Margin	61.0%	64.5%	-3.5pp

Strong core business growth through combination of customer growth, rate card and product upgrades

Slowed Seller Leads growth due to decreasing buyers' demand

Revival of PPA

with greater need for marketing power

Mortgage growth fueled

by improved lead quality and enlarged advisory team

Private segment growth is fuelled by strong subscription growth and revival of PPA

(€m)	Q2 2022	Q2 2021	+/-
Private Segment Revenue	29.6	23.0	+28.4%
of which Subscriptions	14.8	9.3	+58.8%
Customers (period # average)	297 089 ,	189 354 ,	+56 9%
Resulting (in €) ARPU	16 6	16 4	+1 2%
of which PPA	10.1	8.5	+19.8%
of which Other (Schufa, RRI)	4.7	5.3	-11.6%
ooEBITDA Private Segment	15.4	10.1	+52.4%
ooEBITDA Margin	52.2%	43.9%	+8.2pp

Strong demand for unmatched Plus-product offering

New customer wins in tandem with ARPU growth

Revival of PPA as standing times increase and private sellers / landlords need more marketing power

Q2 ordinary operating EBITDA increases strongly despite continued growth investments

(€m)	Q2 2022	Q2 2021	+/ -	H1 2022	H1 2021	+/ -
Revenues	109.6	95.9	+14.4%	217.6	189.7	+14.7%
Own work capitalised	7.2	6.7	+7.4%	14.5	12.3	+17.6%
Personnel costs	-23.3	-21.2	+9.7%	-45.6	-41.4	+10.3%
Marketing costs	-12.7	-9.7	+30.6%	-26.4	-17.8	+48.3%
IT costs	-5.4	-4.2	+28.4%	-10.7	-8.1	+31.7%
Selling costs	-6.4	-5.3	+19.9%	-13.1	-11.3	+15.7%
Other operating costs	-7.1	-7.0	+1.4%	-15.6	-13.2	+18.2%
Total operating effects	54.9	47.5	+15.6%	111.4	91.8	+21.3%
ooEBITDA	62.0	55.2	+12.5%	120.7	110.2	+9.5%
margin ooEBITDA	56 6%	57 5%	-0 9pp	5% 55	58 1%	-2 6pp

• Lower capitalisation rate (6.6% vs. 7.0%)
• Personnel costs increased due to integration of Vermietet.de and regular salary increases
• Marketing costs increased more slowly due to realisation of efficiencies
• IT costs higher due to Vermietet.de integration and increased AWS costs
• Selling costs higher due to integrated credit checks in increased Plussubscriptions
• Other operating costs increased due to higher external personnel costs and positive effect from liquidation of bad debt in 2021

Highly accretive EPS is a result of underlying performance and share buybacks

(€m)	Q2 2022	Q2 2021	+/-	H1 2022	H1 2021	+/-
Ordinary operating EBITDA	62.0	55.2	+12.5%	120.7	110.2	+9.5%
Non-operating effects	-2.6	-6.2	-58.0%	-7.6	-8.9	-14.6%
Reported EBITDA	59.5	49.0	+21.4%	113.1	101.3	+11.6%
D&A	-15.2	-14.5	+5.0%	-22.8	-27.8	-18.2%
EBIT	44.3	34.5	+28.3%	90.3	73.5	+22.9%
Financial result	-4.1	-2.0	+102.6%	-20.8	-5.6	+268.6%
Earnings before Tax	40.1	32.5	23.4%	69.5	67.8	+2.5%
Taxes on Income	-13.3	-10.4	+28.4%	-22.6	-21.3	+6.2%
Net income	26.8	22.1	+21.3%	46.9	46.5	+0.8%
Basic EPS in €	0 34	0 25	+36 0%	0 59	0 50	+18 0%
Adjusted EPS in €	0 46	0 37	+24 3%	0 89	0 71	+25 4%
Weighted # shares in av m	78 9	88 0	-10 3%	79 8	92 9	-14 1%

• Non-operating effects decreased significantly primarily due to lower share-based payments and lower M&A costs
• D&A decreased underproportionately due to the termination of the PPA amortisation of the ImmoScout24 customer base
• Financial result impacted by negative performance of managed liquidity (since AS24 transaction, managed liquidity had an overall performance of -0.60%)
• Highly accretive EPS profile due to share buybacks

We are raising our FY 2022 guidance on the back of continued strong revenue growth and operating leverage

Q&A

Next event: Q3/9M 2022 results 3 November 2022 at 3pm CET

New IR contact: Filip Lindvall – Director Group Strategy & Investor Relations

ir@scout24.com