Investor Presentation • Apr 4, 2018
Investor Presentation
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www.scout24.com
April 2018
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.
All numbers in new vertical structure unaudited and preliminary only, if not otherwise stated.
Source:
1.Management estimate; Leading position in real estate classifieds in Germany in terms of listings and traffic as well as a leading position in Europe (Belgium, Luxembourg, Netherlands, Italy, Austria) for automotive classifieds, based on listings and traffic., December 2017.
Source: Management estimates, own traffic monitor, December 2017
Based on latest World Bank population data and OECD average household size data.
Based on management estimates and Autobiz, December 2017
| Clear No. 1 Market Position in the Attractive German Property Market |
|---|
| A European Automotive Classifieds Leader, with Strong Momentum |
| Significant Value Proposition for our Partners driving Monetization and ARPU Upside |
| Large Adjacencies that Expand our Addressable Market and Growth Opportunity |
| Strong Tailwinds in the German Digital Classifieds Market |
| Strong Innovation Power Transforming How People Get Products and Services |
| Substantial Growth with Increasing Profitability and Cash Generation |
Our Purpose: Inspiring Your Best Decisions We connect people, cars and homes.
Displaying a wide range of listings Creating a transparent market environment Complementing offering with relevant services Tracing Consumer Journey across marketplaces Providing digital alternative for offline services
REFLECT ENHANCE TRANSACT
Supporting with lead acquisition Providing valuable consumer insights Delivering data driven tools for branding & acquisition Driving engagement with consumers Helping with the digitisation of day-to-day business
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Around 450,000 listed properties, 1.8x more than next competitor1
Around 40,000 paid private listings online per day1
Offering the most residential listings in 84% of regions in Germany2
Around 13 Million Unique Monthly Visitors, 1.7x more than next competitor3
More than 50% of the market only visits IS244
Market leader in usage frequency and reach in 72% of regions in Germany5
+ 22% growth in leads provided to partners6
Sources:: Management estimates, if not stated otherwise
GDP with stable growth during last 3 years
Consumer confidence at record high level
Employment continuously increasing
Interest rates continue to be at low level
Moderate growth in residential transaction volume
Healthy increase in residential sale transaction value in 2016
Amount of building permissions increased
strongly in 2016
Solid increase in commercial real estate price index
Consolidation in agent market slowing down
"Bestellerprinzip" for sale unlikely
Provide a Networked Real Estate Marketplace which is Completely Digital, Offering a Transparent, Simple and Relevant Experience for All Actors in the Market
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Comparison to selected competitors
| Schaufenster | 12.8% |
|---|---|
| Premium | 18.3% |
| Top | |
| Standard | 65.2% |
This is how Visibility Products help you
| Schaufenster | 30.6% |
|---|---|
| Premium | 14.5% |
| Top | 8,8% |
| Standard | 4197 |
| Schaufenster | 0.28 | |
|---|---|---|
| Premium | 0.25 | |
| Top | 0.17 | |
| Standard | 0 1 |
| Sale | Rent | |
|---|---|---|
| # of sold objects during the last 6 months |
12 | - |
| Price of sold objects |
3.936.000,00 € | - |
| Ø Price / Rent per object | 328.000,00 € | - |
| Provision (%) / Number of monthly Rents (#) | 5,0% | - |
| Commission in the last 6 months | 196.800,00 € | - |
| Commission extrapolated to 12 months | 393.600,00 € | - |
| Objects marketed via IS24 (%) |
60% | - |
| Commission directly attributable to IS24 | 236.160,00 € | - |
| IS24 Cost in the last 12 month / ROI | 12.000,00 € | - |
| ROI on 1€ Invest in IS24 | 19,68 € |
All data with regards to Residential Agents, excluding Property Management Scources: Management estimate,s internal data
A few large & professional players, followed by a long tail of small players
Competitive market, with focus on pre-qualified lead generation and brand building
Large & highly professional players acting nationwide as well as local heroes
Business drivers: Landplot availability, efficient and timely marketing of units at best price
~3.0 thousand projects listed on IS24, 1.2x compared to next competitor
Dedicated platform, customised for the needs of VIA Products and media products commercial seekers
✓Dedicated search criteria
✓Draw-search
✓VIA products for efficiently marketing objects and building brand in search funnel
Engaging search experience with dedicated products VIA Products and media products for customers
✓Opportunity to highlight specific units
✓Dedicated project-listing VIA products
Around 2.4 million new and used cars1
99 million visits per month with 67% mobile share2
Around 47,600 dealer partners3
Market leader in 4 European countries4
49% of dealer revenue generated in market leading countries5
20% dealer growth in Germany since IPO5
36% ARPU growth in Core countries since IPO6
Sources:: Management estimates
Total listings on the AS24 platform, November 2017
Based on average monthly visits (sessions) to the AS24 platform from mobile devices, mobile and all AS24 applications as measured by own traffic monitor (Google Analytics) EU-wide, January to December 2017
Including commercial vehicle dealers
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Sources: Management estimates, Autobiz, December 2017, for Austria including Gebrauchtwagen.at (not deduplicated)
*In terms of listings; compared against local competitors in the respective market. Market position in Austria and Netherlands reached No.1 position post IPO
In terms of dealer listings, Autobiz, January to December average, December 2017; Non-Deduplicated for Gebrauchtwagen.at and AutoTrader.nl
Based on average monthly visits (sessions) to the AS24 platform from mobile devices, mobile and all AS24 applications as measured by own traffic monitor (Google Analytics), December 2017, including European AutoTrader and Gebrauchtwagen.at; Traffic in Germany including re-directed traffic to Easter-European Language Versions
| Consumers | Dealers | OEMs | |
|---|---|---|---|
| €156bn spent on cars annually €61bn also spent on insurance and financing and €64bn on after sales in Germany alone Less brand focused, more time online (Ø 6h and only 1,2 |
Marketing spend of >€650m in Germany – 65% is still offline |
€2bn ad spend by OEMs in Germany - 71% is still offline |
|
| s al o G |
dealer visits) Find the right car from a trustworthy seller, at a fair price & in good condition |
Sell used & new cars Fast turnover to best price possible Earn from adjacent services |
Sell new cars & utilize factory capacity Getting closer to consumer |
| n o ositi p o pr e u al V |
Largest EU supply Outstanding user experience Transparency & value added services |
Largest EU demand Increase visibility to drive turnover Additional tools to support sales |
Largest EU auto audience Targeted advertising Consumer insights & access |
Cost per sale with AS24 is significantly lower than dealer net margin
OC&C 2015
Average Car Price in 2017, AutoScout24 Used Car Price Index (AGPI), October 2017
| Already | |||
|---|---|---|---|
| used on 6% |
|||
| of all |
|||
| listings2 | |||
Impact of standing time on price reductions
Strong Organic Track Record
Around 2,500 leads per day sent to mortgage & relocation companies
Around 39,000 credit checks sold every month
3,000 paying financing and relocation partners1
40,000 premium subscribers2
2.8m visits per month3
€80 Million revenue contribution in 2017
Double-digit revenue growth per year since IPO
Customers with at least one invoice
Active subscriptions since September 2017
Sessions on Scout24 Consumer Services Products (Including Desktop, Mobile and Satellite Websites), measured by own traffic monitor (google analytics)
Drive the digitisation of the whole process of buying homes and cars
Be the central place where the consumer and customer needs and expectations are met
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Creating a €100m+ Business in the Mid-Term
Source: OC&C analysis 2014, unless otherwise stated. 2018 classifieds forecasts based on OC&C average case. 1. Source: PwC, ''Growing complexity driving change in the automotive market'', December 2014. 2. Source: Enders Analysis, March 2015.
Continuously Digitizing the Process of Property Rental & Buying
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| Favourable dynamics |
» Structural top-line growth driven by the ongoing print-to-digital shift » Exceptional brand and strong network effects in a classic two-sided market with high barriers to success |
|---|---|
| Recurring revenue |
» High-growth, subscription-based model underpinned by superior customer ROI proposition » High market penetration and high retention rates showcase Scout24's must-have, mission-critical service |
| OneScout24 |
» Fully-integrated organization across two market-leading verticals, allows for tangible operational synergies » IS24 and AS24 follow similar business model fundamentals and share a significant portion of their user base |
| Operating leverage |
» Superior value proposition implying significant ARPU uplift potential » Scalable technology and low marginal cost drive high operating leverage |
| Strong cash generation |
» Low capex requirements and favorable working capital trends lead to high cash generation » Clear priorities for free cash |
Target leverage of 1.5x to 1.0x over time
Investor Relations Contact Details
Vice President Investor Relations & Treasury
Tel : +49 89 444 56 3278 Fax : +49 89 444 56 193278 Email : [email protected]
Diana Apostol Junior Manager Investor Relations
Tel : +49 89 444 56 3278 Fax : +49 89 444 56 193278 Email : [email protected]
www.scout24.com/en/Investor-Relations.aspx
Full Year Report 2017 report.scout24.com/2017 www.scout24.com/en/Investor-Relations/Financial-Publications/Financial-Publications.aspx
Scout24 AG Bothestrasse 11-15, 81675 München
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