Baltic Classifieds Group PLC · LSE:BCG
Baltic Classifieds — H1 2022 Earnings Presentation
26 slides from Baltic Classifieds's earnings presentation, Dec 15, 2021
Slide 1: Half Year Results Presentation
Half Year Results Presentation Six Months Ended 31 October 2021 15 December 2021
Slide 2: Strategic overview
Strategic overview • Highest ever six-monthly revenue in all four business units, with performance ahead of expectations at the IPO • Traffic at record levels compared to any period prior to COVID, with all top five sites increasing its audience lead over its closest competitor • Increased yield fro
Slide 3: Financial highlights
Financial highlights €25.0m • Organic revenue grew 24% to €25.0m (H1 2021: €20.4m of which €0.2m from divested business) driven by Autos (+10% organic/ +7% reported), Real Estate (+20%), Generalist (+11%) and doubling in Jobs & Services (+113%). Reported revenue grew 22% €2.4m • Fall in unadjusted o
Slide 4: Operational highlights
Operational highlights • 66.4 million visits per month to BCG sites - on average a resident in the Baltics visits a BCG site 11 times every month • More business advertisers than ever before: real estate brokers up 2%, automotive dealers up 6% and employers up 63% • Leadership position against neare
Slide 5: COVID-19 environment
COVID-19 environment • Our half year comparable was not notably affected by the impact of COVID-19, though in lockdown for part of the period • COVID-19 has accelerated digital adoption generally, lead to a very strong bounce back in the jobs market and a strong return in property, but has disrupted
Slide 6: Financials
Financials
Slide 7: Revenue Summary: Group
Revenue Summary: Group Revenue (million €) YoY Organic Growth 2% 24% • The main drivers of revenue growth were: YoY Growth 22% 25.0 increases in the number of advertisers across all our 4 business sectors, 22% 3.7 an increase in the number of advertisements/ 20.4 active C2C listings across all o
Slide 8: Revenue: Business Line
Revenue: Business Line Revenue (million €) Diversified Revenue Streams H1 21-22 YoY H1 22 Revenue Split General 25.0 Growth 20% Auto 36% Jobs & Services Real Estate 5.1 11% 20.4 Jobs & Services Real Estate 19% Generalist 4.6 113% Auto 4.7 25% 2.2 20% Generalist revenue grew 11% despite a slowdown in
Slide 9: Adjusted Operating Expenses
Adjusted Operating Expenses Adjusted Operating Expenses (million €)(1) • Costs are set out to show the underlying costs excluding: In H1 2022: Other public company costs 5.4 €7.4 million IPO fees 22% H1 21-22 YoY 0.4 Growth €1.4 million free share awards to employees Other costs 1.2 In H1 2021:
Slide 10: EBITDA Summary and Cash Flow
EBITDA Summary and Cash Flow Adjusted EBITDA (million €)(1) Operating cash flow (million €) Cash conversion (2) 99% Adj. EBITDA 78.3% 78.4% margin CAPEX % of revenue 0.8% 23% 19.6 20.9 Acquisition 1.4 related costs 16.0 Generated cash from operations Free share 0.1 awards 7.4 15.2 2,2* IPO related c
Slide 11: Net Debt
Net Debt Net debt(1) bridge (million €) Repayment of a loan facility at IPO €(214) million (fully repaid in July 2021) Capital allocation policy Gross new bank debt €98 million • The Board intends to recommend a final dividend • We may choose to fund future acquisitions in part or Gross new bank deb
Slide 12: Strategic Progress
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Slide 13: Auto
Auto Average auto price (€) and transactions (k) C2C KPIs YoY Change in no. of (14%) 0% 18.7 YoY Growth transactions 6% 23% YoY Growth in auto 286 prices 12.9 245 245 44% 8 511 28.5 (24)% 6 518 6 893 21.6 H1 2021 H1 2022 H1 2020 H1 2021 H1 2022 Avg. monthly revenue per C2C ad (€) No. monthly active
Slide 14: Real Estate
Real Estate Average real estate price (€/sq. m) and transactions (k) C2C KPIs YoY Change in no. of 2% 22% 19.5 YoY Growth transactions 8% 10% YoY Growth in real 15.4 149 estate prices (1) 120 122 27% 1 868 15.2 15.5 2% 1 566 1 695 H1 2021 H1 2022 Monthly Revenue per Ad (€) H1 2020 H1 2021 H1 2022 No
Slide 15: Jobs
Jobs Average unemployment rate(1) Average gross wage (€)(2) 9% 12% YoY Growth 8.6% 1 554 7.4% 1 388 1 278 6.1% Q2 2019 Q2 2020 Q2 2021 Q2 2019 Q2 2020 Q2 2021 Lead vs closest competitor B2C KPIs: CVbankas(5) Relative Market Share (3) vs. Nearest Competitor 311.4 YoY Growth 221.6 H1 2021 H1 2022 41%
Slide 16: Generalist
Generalist C2C KPIs: Skelbiu Lead vs closest competitor YoY Growth Relative Market Share (1) vs. Nearest Competitor 5.7 5.3 H1 2020 H1 2021 H1 2022 8% 14.4x 22.2x 18.6x Lithuania: Skelbiu (2) 3% 90.5 88.0 1.1x 1.6x 1.9x Estonia: Osta (2) H1 2021 H1 2022 Revenue per Listing (€) No. of Listings (k) 0.
Slide 17: Innovations
Innovations Autoplius.lt car pricing tool Aruodas.lt and KV.ee B2C customers authentication Helps B2C customers to make a better decision on Aruodas.lt and KV.ee launched strong customer buying stock authentication for B2C customers to increase Shows historical prices and time it takes to sell
Slide 18: Innovations
Innovations CVbankas.lt targeted job offer Skelbiu.lt delivery upgrade Employers face difficulties to find candidates so Sellers tend to send multiple shipments at once so Cvbankas.lt introduced an automated tool to reach generalist Skelbiu.lt introduced a cart for shipments passive job seekers
Slide 19: Outlook
BALTIC CLASSIFIEDS GROUP Outlook
Slide 20: Our Growth Runway Is Significant
Our Growth Runway Is Significant Opportunities Targeted Acquisitions The Core (C2C / B2C) Development of Ancillary Products Product Development (Including Listing Promotions) Pricing Actions Underpinned by Baltic Economic Strength Driving Growth in Transaction Volumes and Values 20
Slide 21: Outlook
Outlook Revenue growth in line with previous guidance, across Autos, Real Estate and General Marketplace in aggregate, even in the event that COVID-related restrictions are imposed on a similar basis to those seen over the last 20 months Jobs & Services likely to continue to be strong, significa
Slide 22: Appendixes
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Slide 23: Income Statement
Income Statement 6 months ended 31 6 months ended 31 Year ended 30 October 2021 October 2020 April 2021 (€ thousands) (€ thousands) (€ thousands) Revenue 25,004 20,417 42,268 Other income 4 1 7 Expenses (22,658) (13,006) (26,565) Operating profit 2,350 7,412 15,710 Finance income 119 1 2 Finance exp
Slide 24: Balance Sheet
Balance Sheet 31 October 2021 31 October 2020 30 April 2021 (€ thousands) (€ thousands) (€ thousands) Assets Property, plant and equipment 314 268 211 Intangible assets and goodwill 408,715 425,274 416,909 Right-of-use assets 567 926 761 Other non-current receivables - 7 - Non current assets 409,596
Slide 25: We Are The Clear Leader
We Are The Clear Leader Lead over Closest Competitor Go-to Destination for The Public Relative Market Share(1) vs. Nearest Competitor (H1 2022) Monthly Visits per Capita(8) 8.4 Lithuania Estonia Latvia 6.5 c.4x c.37x (2) (3) 4.0 c.28x (4) (4) (7) c.11x c.0.9x #1 in Latvia is generalist portal SS.lv
Slide 26: Still Early in Our Monetisation Journey
Still Early in Our Monetisation Journey C2C B2C (3) Effective Cost of C2C Listing as a % of Underlying Car Value B2C Take Rates, 2019 0.6-1.2% 5 - 6% 4 - 5% 1 - 3% 0.4-0.6% 0.4-0.6% 0.4-0.6% 0.5-0.6% ~0.4% The Baltics Baltics (4) UK Germany B2C Take Rates, 2019 (3) Baltics (1) 7 - 9% 3 - 5% Effectiv
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