Scout24 Se · XETR:G24
Scout24 — Investor Day (February 2024)
75 slides from Scout24's investor day presentation, Feb 28, 2024
Slide 1: Growing impact with Capital Markets Day
Growing impact with Capital Markets Day
Slide 2: Growing impact with Tobias Hartmann, CEO
Growing impact with Tobias Hartmann, CEO 28 February 2024
Slide 3: Disclaimer
Disclaimer This document has been issued by Scout24 SE (the Certain statements, beliefs and opinions in this document of new information, future events or otherwise. You should “Company” and, together with its direct and indirect are forward-looking, which reflect the Company’s or, as not place undu
Slide 4: Substantial revenue growth and margin expansion since CMD 2021
Since CMD 2021 we have achieved substantial revenue growth and significantly expanded our margin, leading to strong EPS growth +31% +36% +66% Revenue growth ooEBITDA growth Adj. EPS growth since FY2021 since FY2021 since FY2021 4 CMD 2024
Slide 5: We outperformed our CMD 2021 targets
We significantly outperformed our CMD 2021 targets, underscoring our ability to maintain revenue momentum amidst changing market conditions 2023: Implied CMD 2021 Targets* vs. FY2023 Actuals 509 Revenue 486 in m EUR 2023 Implied 2023 Act. 2023: +4.8% Target 304 ooEBITDA 272 in m EUR 2023 Implied 202
Slide 6: ImmoScout24 is the #1 digital real estate platform in Germany
ImmoScout24 is THE #1 digital real estate platform in Germany 25+ 19m 90% Years expertise & scaled Unique monthly visitors1 Aided platform operations brand awareness2 22k 378k 1.2m Agents using Avg. Private Plus Registered users in our our platform (Q4 2023) subscribers (Q4 2023) Homeowner Hub (Q4 2
Slide 7: 25 years of growth digitizing German real estate
We digitized the German real estate industry with 25 years of growth ImmoScout24 revenue development in the changing real estate market Revenue ImmoScout24 in €M #1 market position with outstanding brand perception 509 500 Digital pioneer in a changing market 447 450 389 400 Growth in times of crisi
Slide 8: Evolving from listing business into 3-sided marketplace
Scout24 evolved from a “pure listing business” into a unique 3-sided marketplace The next phase is about driving interconnectivity Year < 2019 CMD 2021 2024 The next phase is about Investment / Building phase Interconnectivity Listings Objects Customers Traffic (B2B & B2C) Digital Ecosystem Money Tr
Slide 9: Future monetisation powered by personalized experience
Future monetisation is powered by personalized user experience, greater engagement and better matchmaking Personalized Greater Better Higher user experience Engagement Matchmaking Monetisation 9 CMD 2024
Slide 10: Our strategic framework captures the market opportunity
Our strategic framework captures the significant market opportunity, bolstered by our interconnected marketplace enabling future growth The market opportunity Our interconnected marketplace Where we are going 2024-2026 German Real Content, Audience Product Portfolio Growth Updated Financial Estate M
Slide 11: The German Real Estate Market Opportunity
The German Real Estate Market Opportunity
Slide 12: Germany is a highly attractive market for realtors
Germany is a highly attractive market for realtors Historically resilient Favorable demographic Healthy Agent real estate prices characteristics commission levels Low level of digitization and High need for Significant ESG business high GDPR complexity transparent information opportunities 12 CMD 20
Slide 13: Product portfolio expansion drives monetisation potential
Innovation and expansion of our product portfolio across all three customer groups drive incremental monetisation potential Today: Existing / Core addressable market Future: Innovation driving interconnectivity of products Professional offering 4 Residential real estate Low and adjacencies Penetrati
Slide 14: Leading in Content, Audience and Trust
Leading in Content, Audience and Trust
Slide 15: Content on our platform goes beyond listings
Content on our platform goes beyond listings We enrich the German real estate market with unique demand and supply data Unique Unique Market insights and Scout Media Demand Data Supply Data Data Analytics Reach 378k 1.2m 38m 3bn1 Personalized Registered Yearly People were exposed search profiles Hom
Slide 16: Audience continues to increase engagement
Our audience continues to increase engagement, especially on the Homeowner side we are seeing strong growth Our Audience Platform Engagement Homeowner Engagement Email contact requests Total hours spent (sale & rent) on Homeowner Hub 19m CAGR +14% +330% Unique monthly visitors (2023) 2021 2022 2023
Slide 17: Best-in-class Product Portfolio and Tech Leadership
Best-in-class Product Portfolio and Tech Leadership
Slide 18: We invested around €300m in product and tech
• Sprengnetter • 21st Real Estate • Plus subscriptions • Realtor Lead Engine (RLE) • Personalized • Commission leads Valuation We invested around account logic and Data • CRM (Flowfact, Propstack) €300m over the past years to establish a Appr. comprehensive product & tech B2C €300m B2B Product Depth
Slide 19: AI is a key cornerstone of our data strategy
AI is a key cornerstone of our data strategy – fully integrated and operational AI Powered Platform and Organizational Products Security Efficiency … higher engagement and ... more trust and security, … profitability increase platform interconnectivity, reinforcing our status as through cost-savings
Slide 20: Growth Strategy
Growth Strategy
Slide 21: Key takeaways: data and tech drive interconnectivity
Key takeaways: Merging our data powerhouse and tech platform with our classifieds business will drive interconnectivity and our competitive edge to new levels Investments in Unique Data assets Platform Growing our Product and Tech and depth interconnectivity competitive edge Significant investments
Slide 22: The German Real Estate Market Opportunity
The German Real Estate Market Opportunity Gesa Crockford, MD ImmoScout24
Slide 23: German real estate market is attractive for further growth
The German real estate market is attractive to drive further growth Market Change Healthy Fundamentals Growth Opportunities … since 2021 is accelerating … underpinning structural … we see additional business the digitization of the real growth for years to come and growth opportunities estate indust
Slide 24: Since 2021 the German real estate market changed drastically
Since 2021 the German real estate market changed drastically Modernization Monthly Avg. (Offer) Real Total Number Avg. Sale Listing Pressure Mortgage Rates1 Estate Prices2 of Transactions3 standing time4 New Changes since 2021 Modernization Law as of +30% -6% -36% +82% January 2024 (1) Own calculati
Slide 25: German transaction market is a structural growth market
The German transaction market is a structural growth market We expect the market to recover in 2024 after a meaningful decline since 2021 Development of real estate sale transactions Positive signals entering 2024: in thousand -36% 682 More leads per listing Agents are more optimistic 435 Mortgage l
Slide 26: Stable real estate prices amid transaction slowdown
Transactional slowdown partially linked to very stable real estate prices, highlighting the resilience of the asset class and market Development of Offer Prices on ImmoScout24 (Q4-2016 to Q4-2023) 4560 Year-on-year Q4 2023 to Q4 2022 4060 3560 New built apartments +2.4% 3060 2560 New built houses +2
Slide 27: Shift of negotiation power from buyer to seller
The shift of negotiation power from buyer to seller is visible in the comparison of offer and transaction prices Development of Offer and Transaction prices for single-family homes (indexed since Jan 2018) 1.6 Price discrepancies between 1.5 listed objects and actual transaction prices have 1.4 wide
Slide 28: Population growth and housing need bolster recovery
Continued expected population growth and the pressing need for new housing are set to bolster transactional recovery in the coming years Germany’s Population growth development and forecast1 › 0.8 in million 84.9 85.1 84.7 83.2 82.8 million2 Housing unit shortage until 2027, as a result of 2017 2020
Slide 29: Low homeownership rate is an additional catalyst
Germany’s low homeownership rate serves as an additional catalyst for transaction growth in the next years Germany’s Homeownership rate compared … in the next years Homeownership rate is to other European countries1 expected to increase from the current level in % 87% 64%2 70% 76% 50% Expected 64% H
Slide 30: Over 40% of building stock requires modernization
Over 40% of Germany's building stock requires modernization Our ambition is to play a driving role in this sustainable transformation Price reductions by energy efficiency scoring Over for real estate objects2 40% 1 … in metropolitan areas … in rural areas of all German building stock have lowest en
Slide 31: High prices and commission rates make Germany attractive for agents
High real estate prices and high commission rates make the German real estate market structurally very attractive for agents Germany has among the highest sales commission rates Compared to other EU in international comparison Classifieds markets, Germany offers agents %, Up to paid by highest avg.
Slide 32: Increasing share of agent usage
Increasing share of agent usage will provide increased business for realtors In the past years about Shift towards online 60% 71% of residential real estate of transactions are now sale transactions were brokered via an agent, brokered via an agent as agent usage increased * * January 2023 January 2
Slide 33: Agents need to navigate an increasingly complex market
Agents need to navigate an increasingly complex market Scout24 is the right partner to help them succeed Leads. Changing Regulations market dynamics Agents need to be able to Buyer/Seller sourcing consult – right tool set needed more difficult and longer listing standing times Visibility. Agents nee
Slide 34: Key takeaways: market changes positive for Scout24
Key takeaways: Market changes fundamentally positive for Scout24 Market changes since mid 2022 enabled new growth opportunities for Scout24 German Real Estate Market Price differential on Structural decline More objects with a Reduced buyer Buyer and seller low score energy of grey market higher eff
Slide 35: Best-in-class Product Portfolio and Tech Leadership
Best-in-class Product Portfolio and Tech Leadership Ralf Weitz, CPTO
Slide 36: Foundation for next phase of platform interconnectivity
Since CMD 2021: We have established the foundation for the next phase of platform interconnectivity, based on three foundational platforms Best-in-class Security & Fraud Prevention Homeowners Seekers Professionals Transactions Established digital Personalized Built highly scalable Market leading rea
Slide 37: Next phase: it's all about interconnectivity
Now we focus on the next phase: It's all about interconnectivity Enable the best matchmaking for all We make it easy to become home stakeholders Evolving beyond a listing marketplace Co Focus on: Content, Content, Content mp reh en vesi Homeowner as starting point for every future transaction Digiti
Slide 38: We can shape the market
We can shape the market 90% Comprehensive database for commercial and IS24 Brand Awareness1 residential real estate 68m 30m Users3 we can create Units addressable4 with a personalized Scout24 data models experiences for (1) Q1 2023: Brand study (Goldberger Marktanalytik) (3) Internal data (hashed Us
Slide 39: Our roadmap is determined by building blocks
Our roadmap is determined by 3 building blocks Building Block Building Block Building Block 1 2 3 Data and AI and Interconnected Content Innovation Products 39 CMD 2024
Slide 40: We invested c. €100 million in Tech infrastructure
We invested c. €100 million in Tech infrastructure and are ready for scaling 2021-2022 2023 2024 Building foundation Becoming a data platform Interactive experiences and for interconnected platforms (data-lake technology) efficient matchmaking + Object and Valuation Data + Personalized customer expe
Slide 41: Our roadmap is determined by building blocks
Our roadmap is determined by 3 building blocks Building Block Building Block Building Block 1 2 3 Data and AI and Interconnected Content Innovation Products 41 CMD 2024
Slide 42: AI will power the next generation of interconnected products
AI will power the next generation of interconnected products Data Sources Data Platform AI Platform AI Products Data Enrichment Data Customization Data Implementation Model services 3rd Party Custom 1 Gen AI Model Personalization Deploy API Real Estate Professional Foundation Train Train Model Custo
Slide 43: Our roadmap is determined by building blocks
Our roadmap is determined by 3 building blocks Building Block Building Block Building Block 1 2 3 Data and AI and Interconnected Content Innovation Products 43 CMD 2024
Slide 44: Interconnectivity through audience and products
Interconnectivity through combination of audience and products Valuation & Data Classifieds Ecosystem Tech & AI Transaction & 22k Professional Market Data Professionals Platform 38m API calls per year Efficient Mortgage Partially Matchmaking Proprietary 378k Seeker Appraisal Exclusive Seeker Platfor
Slide 45: B2B Residential: New Memberships
B2B Residential: NEW Memberships New Memberships starting March 2024 New membership with enhanced features and exclusive data set for professionals: Object based competitor analysis Sprengnetter valuations Modernizer calculator Sprengnetter trainings and certificates 45 CMD 2024
Slide 46: B2B Commercial: Commercial Data
B2B Commercial: Commercial Data NEW Data Offering Empowering the future of commercial real estate decisions through cutting- edge data & analytics: Macro and micro level location scorings ESG and statistical data Historical prices Points of Interest explorer Germany wide rent index (”Mietspiegel”) a
Slide 47: Sprengnetter embedded across three platforms
Our new valuation asset Sprengnetter is embedded across our three platforms Professional Example Homeowner Example Seeker Example Valuations Modernizer Map Experience Easy access to Sprengnetter Homeowners can estimate their Seekers can make data-driven valuation tools for real estate modernization
Slide 48: B2C Seeker: AI Search
B2C Seeker: Example 3: AI search AI Search Personalizing the Freedom to search beyond Search Experience structured filters: Explorative Bridging listing search with data assets Machine Learning models Personalization through user intent and behaviors Generative AI Interactive content expands the dep
Slide 49: Homeowner Hub
Homeowner Hub Empowering Homeowners to make smarter data-driven decisions on ImmoScout24: Portfolio view of all properties, like a stock portfolio Value development of a real estate object incl. price forecast Potential rental income incl. forecast + gross rental return Demand for comparable propert
Slide 50: Interconnectivity example
Interconnectivity example Exclusive Seeker Waiting List Seller leads via content creation ”Update on Favorites” Homeowner Hub (“open for offers”) Direct Agent Direct Seeker Matching Matching 50 CMD 2024
Slide 51: Key takeaways: ready to evolve beyond a listing marketplace
Key takeaways: We are ready to evolve beyond a listing marketplace Since 2021 CMD we significantly strengthened our tech foundation and data assets Redefined the definition of a listing, content and user experience through data Evolving beyond We have a clear vision for the future a listing marketpl
Slide 52: Growth Strategy
Growth Strategy Gesa Crockford, MD ImmoScout24
Slide 53: Future monetisation powered by personalized experience
Future monetisation is powered by personalized user experience, greater engagement and better matchmaking Personalized Greater Better Higher user experience Engagement Matchmaking Monetisation 53 53 CMD 2024
Slide 54: Track record of turning engagement into subscriptions
We have a strong track record of turning engagement into subscriptions Professional Private (Seeker) Homeowner Number1 Membership Number1 of Buy+ & Rent+ Number1 of LandlordPlus subscriptions subscriptions (w/o LandlordPlus) subscribers in Thousand p.a. in Thousand p.a. in Thousand p.a. 346 299 22 2
Slide 55: Professional membership business going from strength to strength
Professional: our membership business continues to go from strength-to-strength Structural improvements …resulted in strong growth acceleration over the past years… 11.5% Professional Streamlined product offering Membership Revenue CAGR Structured membership tiering Automated pricing mechanisms 4-6%
Slide 56: Growth levers in our membership business
Professional: We have a broad set of growth levers in our membership business Customer growth Monetisation growth Continued increase of agent usage Membership upgrades and increase of on-top marketing spend Increased customer loyalty via Increased product depth and expanded product offering intercon
Slide 57: Private subscription business outperformed CMD 2021 plans
Private: Our private subscription business outperformed our ambitious CMD 2021 plans Strategic initiatives coupled with … significant growth acceleration increased demand let to … 32.5% Private # Implemented new seeker Subscriber features that matter CAGR Extension of the customer lifetime 14-15% Im
Slide 58: Product depth and lifetime extension drive growth
Private: Product depth and lifetime extension will drive next level growth Customer growth Monetisation growth Growing demand for Plus Find Transact Own Further TAM penetration Short-term “one-off” Lifecycle subscription products product c. 20% Illustrative TAM penetration1 Innovation Movements/rent
Slide 59: Updated Financial Framework
Updated Financial Framework Dirk Schmelzer, CFO
Slide 60: Health check vs. CMD 2021
Health check vs. CMD 2021: our core business has outperformed growth targets materially, while transactional assets impacted by the changed real estate market Growth Targets Main Value Drivers Actual CAGR 21-23 by 2026 per 2021 CMD 1 Membership Upgrades & Pricing +4-6% CAGR +11.5% CAGR Membership Re
Slide 61: Business configured to grow in all market environments
Core of our strategy: We have configured the business to be able to grow in all market environments Low interest rate High interest rate New Normal environment environment Professional Membership 4-6% 2x > 10% high single-digit Revenue Private Subscribers High growth High growth High growth Stock Tr
Slide 62: Value Creation Strategy Building Blocks
Unpacking the Scout24 “Value Creation Formula” Value Creation Strategy Building Blocks 1 Revenue growth (organic and/or M&A) 2 EBITDA growth 3 Net income accretion 4 Dividend growth 5 Capital allocation / share buy backs 62 CMD 2024
Slide 63: Double-digit revenue growth momentum in core business
Double-digit revenue growth momentum in core business 1 Revenue, € m 509 389 14.4% 23.6% Group Private CAGR 95 144 CAGR 284 2021 2023 2021 2023 2023 11.6% 284 8.8% 263 327 Media & Professional CAGR Other 32 38 CAGR 2021 2023 2021 2023 2023 63 CMD 2024
Slide 64: Growth in core memberships and private subscriptions
Deep Dive: Growth in core memberships and private subscriptions 1 Outperformed CMD 2021 targets Membership Membership Revenue (in m €) CAGR Per CMD 2021 CAGR Actual Revenue 252 Target 2021-2026 2021-2023 Growth 203 +4-6% +11.5% FY 2021 FY 2023 Implied CAGR for 400k # of Plus Private Subscribers (in
Slide 65: Updated and simplified value driver framework
Updated and simplified value driver framework 1 in-line with updated strategy framework Revised & simplified value driver framework 2021 CMD targets Updated for 2024 – 2026 2024 – 2026 target Professional Memberships 4-6% High single-digit Private Subscriber base 400k Plus Subscriber 500k Plus Subsc
Slide 66: New ooEBITDA margin guidance
Clear path to continued margin expansion 2 Continued healthy revenue mix with focus on higher margin products New ooEBITDA Strong and well-established organizational Margin Guidance setup with continued operational leverage 63% ooEBITDA margin Focus on marketing efficiency by 2026E Tech investment p
Slide 67: Strong adj. EPS growth enabling attractive dividend payout
Strong growth in adj. EPS … … enabling attractive dividend payout 3/4 EPS DPS € per share € per share 2.52 2.52 1.00 1,00 0.82 0.85 0,85 0,82 1.91 1,91 1.52 1,52 2021 2022 2023 2020 2021 2022 Cumulative €208m 29% EPS CAGR 21-23 paid out as dividends 67 CMD 2024
Slide 68: Capital Allocation
Capital Allocation: Our highly cash-generative and growing business 5 allows us to continue to return capital to shareholders #1 #2 Re-invest into growth Return cash to shareholders Organic growth main priority Dividend: 30-50% of our adjusted net income in the form of M&A activities centered around
Slide 69: Updated Group financial guidance
Updated Group financial guidance reflects expected continued strong performance of the core business and operating leverage as we scale our 3-sided marketplace 2024 2024-2026 guidance guidance Revenue High single-digit growth 9 – 11% to low double-digits Ordinary operating EBITDA margin About 61% Re
Slide 70: Key takeaways: continue growth at improved operating leverage
Key takeaways: Continue growth at improved operating leverage 2021 – 2023 key outcomes 2024 – 2026 outlook Upgraded targets for memberships Outperformed CMD 2021 targets and private subscribers Invested c. €300m in next generation Business more diversified – we can product suite and TAM expansions g
Slide 71: Wrap-up
Wrap-up CEO Tobias Hartmann
Slide 72: Interconnectivity will drive the next leg of value creation
Interconnectivity will drive the next leg of value creation for shareholders and customers Proven Track Interconnectivity Attractive Long-Term Record Market Value Creation Invested to launch next generation product suite… Interconnectivity: Complexity and Management focused Next phase for Scout24 st
Slide 73: Appendix
Growing impact with Appendix © Scout24 Investor Relations
Slide 74: Sources for TAM assumptions
Sources for TAM assumptions Marketing: Assumption 12% marketing spend (of total Marketing & commission revenue), distributed 70/30 online/offline ~€1.5bn 1 Valuation Products Valuation Products: Own estimate, includes valuation software for banks and realtors, AVM and appraisal services ~€3bn 2 Fina
Slide 75: Growing impact with Capital Markets Day
Growing impact with Capital Markets Day © Scout24 Investor Relations