Scout24 AG

Earnings Release • May 11, 2016

Quarterly Statement First Quarter 2016

Interim consolidated financial statements for the three months ended March 31, 2016

Table of Contents

Key Financial Highlights 2
Business Development 3
Group3
ImmobilienScout24 (IS24) 4
AutoScout24 (AS24)4
Outlook5
Consolidated income statement (IFRS, unaudited) 6
Consolidated balance sheet (IFRS, unaudited) 7
Consolidated cash flow statement (IFRS, unaudited) 8
Segment information (IFRS, unaudited) 9

Disclaimer:

This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of Scout24 Group. These statements may be identified by words such as "may", "will", "expect", "anticipate", "contemplate", "intend", "plan", "believe", "continue", "estimate" and variations of such words or similar expressions. These forward-looking statements are based on the current views and assumptions of Scout24 management and are subject to risks and uncertainties. Such statements are subject to a number of known and unknown risks and uncertainties and there is no guarantee that the anticipated results and developments will actually materialize. In fact, actual results and developments may differ materially from those reflected in our forward-looking statements. Differences may be due to changes in the general macroeconomic and competitive environment, capital market risks, exchange rate fluctuations, changes in international and national laws and regulations, especially regarding tax laws and regulation, relevant for Scout24, and many other factors. Scout24 undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law.

Due to rounding, numbers presented throughout this statement may not add up precisely to the totals indicated, and percentages may not precisely reflect the absolute figures for the same reason.

Key Financial Highlights

(in EUR million)	Q1 2016	Q1 2015	% change
External Revenues	104.7	92.7	12.9%
IS24	69.1	63.9	8.3%
AS24	34.0	27.6	23.2%
EBITDA1	48.0	41.1	16.8%
IS24	39.3	35.6	10.2%
AS24	12.0	10.0	20.0%
Ordinary operating EBITDA2	51.6	45.7	12.8%
IS24	42.4	38.4	10.4%
AS24	13.3	10.7	24.2%
Ordinary operating EBITDA margin	49.3%	49.3%	0.0pp
IS24	61.3%	60.1%	1.2pp
AS24	39.2%	38.9%	0.3pp
Capital expenditure	4.9	3.9	23.4%
Cash contribution3	46.7	41.8	11.8%

All figures in the table above do not include results of European AutoTrader B.V.

¹ EBITDA is defined as profit before financial results, income taxes, depreciation and amortization, impairment write-downs and the result of sales of subsidiaries.

² Ordinary operating EBITDA represents EBITDA adjusted for non-operating and special effects, ordinary operating EBITDA margin of a segment is defined as ordinary operating EBITDA as a percentage of external segment revenues.

³ Cash contribution is defined as ordinary operating EBITDA less Capital Expenditure.

Business Development

Group

Scout24 continues on its growth path driven by its core businesses, ImmobilienScout24 ("IS24") and AutoScout24 ("AS24"), the ongoing roll-out of the product models "VIA" in IS24 and "MIA" in AS24 and strong focus on executing on its sales strategy.

According to the unaudited consolidated financial statements, Group revenues (excluding revenues from the latest acquisition European AutoTrader B.V.) for the first three months ended March 31, 2016 increased by 12.9% to EUR 104.7 million (Q1 2015: EUR 92.7 million).

The Group's ordinary operating EBITDA improved by 12.8% to EUR 51.6 million. Reported Group EBITDA for the first quarter 2016 was up EUR 6.9 million compared to the first quarter 2015, reaching EUR 48.0 million. It included non-operating costs of EUR 3.6 million mainly due to the Management Equity programme, obligations from a purchase price agreement, costs related to the acquisition of European AutoTrader B.V. as well as restructuring costs of EUR 1.0 million. Consolidated reported net profit for the period was EUR 12.6 million (Q1 2015: EUR 11.3 million), resulting in earnings per share of EUR 0.12 (Q1 2015: EUR 0.11).

Cash contribution increased by 11.8% to EUR 46.7 million, supporting Group deleveraging. Cash and cash equivalents amounted to EUR 67.8 million as of March 31, 2016 including the cash outflow for the purchase price of European AutoTrader B.V. in an amount of EUR 27.7 million in Q1 2016 (December 31, 2015: EUR 70.6 million), highlighting the strong free cash flow generation Total net financial debt4 therefore amounted to EUR 714.1 million, leading to a leverage (ratio of ordinary operating EBITDA of the last twelve months to net debt) of 3.65:1 (December 31, 2015: 3.74:1).

Based on this positive financial position Scout24 has made a voluntary repayment towards its bank loan of EUR 40 million on April 5, 2016. This reduced the total debt of EUR 782 million as of March 31, 2016 further to EUR 742 million and will reduce annualized interest expense by approximately EUR 1.5 million.

⁴ Total net financial debt is defined as total debt (nominal value of interest bearing liabilities) less cash- and cash equivalents.

ImmobilienScout24 (IS24)

			%
(in EUR million)	Q1 2016	Q1 2015	change
Revenues from core agents (Germany)	39.1	35.8	9.4%
Revenues from other agents	8.5	8.6	(0.9)%
Other revenues	21.5	19.5	10.3%
Total external revenues	69.1	63.9	8.3%
EBITDA	39.3	35.6	10.2%
Ordinary operating EBITDA	42.4	38.4	10.4%
Ordinary operating EBITDA - margin %	61.3%	60.1%	1.2pp
Capital expenditure	2.5	2.4	6.3%

Revenues from core agents increased by 9.4% to EUR 39.1 million driven by a solid ARPU (average revenue per core agent) increase offsetting decreasing core agent numbers, both developments in line with expectations. Revenues from other agents slightly decreased year-over-year driven by professional pay-per-ad revenues, which decreased driven by impacts of business closures caused by the so-called "Bestellerprinzip". The increase of 10.3% in other revenues reflect a healthy development in revenues from adjacent businesses combined with a lower increase in revenues from private listings.

IS24 maintained a strong competitive lead in lisitings share as well as consumer traffic and engagement in Q1 2016.

AutoScout24 (AS24)

(in EUR million)	Q1 2016	Q1 2015	% change
Revenues from core dealers (Germany)	13.2	9.7	36.1%
Revenues from core dealers (Benelux/Italy)	10.0	8.4	18.7%
Revenues from other dealers	3.2	2.7	20.3%
Other revenues	7.6	6.8	10.9%
Total external revenues	34.0	27.6	23.2%
EBITDA	12.0	10.0	21.4%
Ordinary operating EBITDA	13.3	10.7	24.2%
Ordinary operating EBITDA - margin %	39.2%	38.9%	0.3pp
Capital expenditure	2.3	1.5	52.7%

All figures in the table above do not include results of European AutoTrader B.V.

External revenues for AS24 accelerated significantly with an increase of 23.2% compared to the first quarter 2015. Revenues from core dealers in Germany increased by 36.1% on the back of an increase in core dealer ARPU (average revenue per core dealer) driven by the roll-out of MIA products and an ongoing expansion of core dealer base. Benelux and Italy equally performed strongly with revenues from core dealers increasing by 18.7% to EUR 10.0 million. The increase is driven by a balanced mix of growth in dealer locations and ARPU as well fuelled by the roll-out of the MIA products, which started successfully in Q4 2015. The acquisition of European AutoTrader B.V. which took place in February 2016, will further extend the market leading position of AS24 in the Netherlands. Revenues of European AutoTrader B.V. in February and March 2016 amounted to EUR 1.1 million and are not included in the revenues reported. Other dealer revenues benefit from the consolidation of easyautosale GmbH (consolidated since April 2015).

AS24 sustained its content leadership positions in Belgium, Netherlands and Italy with regards to general classifieds and automotive classified competitors and continued to work on closing the gap towards its competitor in Germany.

Outlook

The business development of Scout24 Group in the first quarter 2016 was in line with the Management Board's expectations and Scout24 is therefore very confident to reach the targets for the financial year 2016 communicated on March 30, 2016. For details, please refer to our Annual Report 2015, which is available at report.scout24.com/2015.

Consolidated income statement (IFRS, unaudited)

(in EUR '000)	Q1 2016	Q1 2015
Revenues	104,728	92,746
Own work capitalised	2,581	2,681
Other operating income	372	654
Total operating performance	107,682	96,082
Personnel expenses	- 26,418	- 23,454
Advertising expenses	- 12,605	- 11,629
IT expenses	- 3,330	- 3,285
Other operating expenses	- 17,283	- 16,565
EBITDA	48,045	41,149
Depreciation and amortisation	- 15,971	- 15,618
EBIT	32,074	25,531
Profit/(Loss) from investments accounted for using the equity	- 1	0
method
Financing income	48	445
Financing expenses	- 12,483	- 8,836
Financial result	- 12,436	- 8,391
Profit/(Loss) before income taxes	19,638	17,140
Income taxes	- 7,011	- 5,889
Profit/(Loss) for the period	12,627	11,251
Attributable to:
Non-controlling interests	- 140	- 142
Shareholders of the parent company	12,767	11,393

Earnings per Share

(in EUR)	Q1 2016	Q1 2015
Basic earnings per share
From continuing operations	0.12	0.11
From discontinued operations	-	-
From profit/(loss) for the period	0.12	0.11
Diluted earnings per share
From continuing operations	0.12	0.11
From discontinued operations	-	-
From profit/(loss) for the period	0.12	0.11

Consolidated balance sheet (IFRS, unaudited)

Assets	03/31/2016	12/31/2015
(in EUR '000)
Current assets	115,491	117,669
Cash and cash equivalents	67,783	70,639
Trade and other receivables	37,891	37,817
Financial assets	190	333
Income tax receivables	249	285
Other assets	9,378	8,595
Non-current assets	2,070,648	2,055,521
Goodwill	788,807	787,283
Trademarks	983,186	983,685
Other intangible assets	247,471	259,454
Property, plant and equipment	12,137	12,994
Investments accounted for using the equity method	1,647	1,648
Financial assets	28,540	795
Deferred tax assets	6,057	6,746
Other assets	2,803	2,916
Total assets	2,186,139	2,173,190
Liabilities	03/31/2016	12/31/2015
(in EUR '000)
Current liabilities	126,474	86,887
Trade and other payables	20,338	25,642
Financial liabilities	45,777	5,966
Provisions for other liabilities and charges	3,996	4,662
Income tax liabilities	22,857	15,295
Other liabilities	33,506	35,322
Non-current liabilities	1,124,622	1,164,973
Financial liabilities	732,067	767,913
Pensions and other post-employment benefit obligations	489	527
Provisions for other liabilities and charges	891	882
Income tax liabilities	29	29
Deferred tax liabilities	388,592	392,961
Other liabilities	2,554	2,661
Equity	935,043	921,330
Subscribed capital	107,600	107,600
Capital reserve	425,220	424,120
Appropriated capital reserve	800,000	800,000
Retained earnings	- 399,412	- 412,175
Other reserves	1,088	1,098
Non-controlling interests	547	687

Consolidated cash flow statement (IFRS, unaudited)

(in EUR '000)	Q1 2016	Q1 2015
Result from continuing operations	12,627	11,251
Depreciation, amortization and impairments of intangible assets	15,971	15,618
and property, plant and equipment
Income taxes	7,011	5,889
Interest income	-13	-86
Interest expense	9,708	8,264
Other financial result incl. impairments of investments	2,740	212
Result from investments accounted for using the equity method	1	-
Result from disposals of intangible assets and property, plant and
equipment	-2	2
Other non-cash transactions	1,092	-328
Change in other assets not attributed to investing or financing
activities	-746	2,862
Change in other liabilities not attributed to investing or financing
activities	-7,225	-11,921
Change in provisions	-705	-3,320
Income taxes paid	-2,401	-251
Net cash generated from operating activities	38,058	28,192
Purchases of intangible assets	-4,265	-3,604
Purchases of property, plant and equipment	-590	-331
Proceeds from the disposal of intangible assets and of property,	5	38
plant and equipment
Proceeds from the disposal of financial assets	155	82
Payments for acqusitions of subsidiaries	-27,745	-
Proceeds from the sale of discontinued operations	-	1,906
Interest received	12	85
Cash flow from investing activities of continuing operations	-32,428	-1,824
Repayment of short-term financial liabilites	-52	-
Interest paid	-8,426	-8,049
Other financial payments	-	-23
Cash flow from financing activities of continuing operations	-8,478	-8,072
Effect of foreign exchange rate changes on cash and cash
equivalents	-8	231
Change in cash and cash equivalents total	-2,856	18,527
Cash and cash equivalents at beginning of reporting period	70,639	21,409
Cash and cash equivalents at end of reporting period	67,783	39,936

Segment information (IFRS, unaudited)

(in EUR '000)		Reve nues from external custo mers	Inter seg ment reve nues	Total seg ment reve nues	EBITDA	Ordi nary opera ting EBITDA	Capital expen diture
	Q1 2016	69,148	207	69,355	39,254	42,399	2,511
ImmobilienScout24	Q1 2015	63,864	66	63,930	35,635	38,392	2,362
	Q1 2016	34,000	151	34,151	12,016	13,326	2,306
AutoScout24	Q1 2015	27,586	151	27,737	10,016	10,731	1,510
Corporate	Q1 2016	562	5,187	5,748	-3,338	-1,850	28
	Q1 2015	477	2,263	2,740	-4,353	-2,281	63
Total	Q1 2016	103,710	5,545	109,255	47,932	53,876	4,845
(reportable segments)	Q1 2015	91,927	2,480	94,407	41,298	46,842	3,935
Other	Q1 2016	1,018	68	1,086	115	233	10
	Q1 2015	819	33	852	-149	119	-
Other reconciling items	Q1 2016	-	-5,613	-5,613	-2	-2,523	1
	Q1 2015	-	-2,513	-2,513	-	-1,235	-
Total	Q1 2016	104,728	-	104,728	48,045	51,586	4,856
(consolidated)	Q1 2015	92,746	-	92,746	41,149	45,726	3,935

Next Events and Reportings

On June 23, 2016, the Annual General Meeting of Scout24 AG will take place in Berlin.

Scout24 expects to report results for the first half of the 2016 financial year on Thursday, August 11, 2016.

Imprint

Investor Relations Britta Schmidt Phone +49 89 444 56-3278 E-Mail ir@scout24.com

Scout24 AG Dingolfinger Str. 1-15 81673 Munich Germany

Phone +49 89 44456-0 E-Mail info@scout24.com www.scout24.com

Photo: Getty Images

Date of publication: 11 May 2016