Scout24 Se · XETR:G24
Scout24 — Investor Presentation (September 2015)
33 slides from Scout24's investor presentation, September 2015
Slide 1: Company Presentation
www.scout24.com Company Presentation September 2015
Slide 2: Important Notice
Important Notice This presentation has been prepared by Scout24 AG (the "Company") solely for informational purposes. Certain information in this presentation is based on management estimates. Such estimates have been made in good faith and represent the current beliefs of the members of management.
Slide 3: Company Overview
Company Overview SCOUT 24
Slide 4: Leading Digital Classifieds Platforms
Leading Digital Classifieds Platforms Focused on Property and Automotive Clear Leader in Germany1 A European Automotive Classifieds Leader1 • Highly liquid marketplace with powerful network effects • Multi-country European platform — 87% penetration of real estate professionals2 — Present in all maj
Slide 5: OneScout24
OneScout24 Our Journey Has Only Just Begun What drives us: Providing an essential service to consumers and ultimately our customers ● Finding a home and buying a car are two critical events in people’s lives ● We aspire to make these processes simple, efficient and stress-free ● Scout24 combines two
Slide 6: How to Capture the Market Opportunity
How to Capture the Market Opportunity Continue to Pursue Monetization Path Driven by Clear Hierarchy of Content Leadership and Audience Content 1 Leadership Re-investment in Attract Large Product and Audience Marketing Large Amount of Quality Listings Monetization of Best Consumer 3 Value Propositio
Slide 7: Key Investment Highlights
Key Investment Highlights SCOUT 24
Slide 8: Key Investment Highlights
Key Investment Highlights 1 Strong Tailwinds in the German Digital Classifieds Market 2 Clear No. 1 Market Position in the Attractive German Property Vertical 3 Significant Monetization and ARPU Upside at IS24 4 A European Automotive Classifieds Leader, with Strong Momentum 5 Large Adjacencies that
Slide 9: Strong Tailwinds in the German Digital Classifieds Market
1 Strong Tailwinds in the German Digital Classifieds Market Upside in Property Classifieds with Shift to Online Auto Classifieds Benefit from Similar Tailwinds Property Classifieds Spend Online Property Classifieds Auto Online Classifieds Online Auto Classifieds as % of Agents’ Residential Evolution
Slide 10: Clear No. 1 Market Position in the Attractive German Property Vertical
2 Clear No. 1 Market Position in the Attractive German Property Vertical The German Market is Very Large…1 …Highly Resilient2… …and Highly Decentralized 53% Total Sales and Rental International Nominal Price Population home Transactions (in m) Development Comparison living in top 8% 16% 46% 3 cities
Slide 11: Clear No. 1 Market Position in the Attractive German Property Vertical
2 Clear No. 1 Market Position in the Attractive German Property Vertical IS24 Outperforms German Vertical Competitors… Visitor Breakdown1 Consumer/Traffic Metrics Customer/Content Metrics Duplicated Exclusive Excl. Unique Visitors1 (Desktop Only) 5.8m 3.8x + 25% Property Agents2 28k 1.3x Comp A + B
Slide 12: Clear No. 1 Market Position in the Attractive German Property Vertical
2 Clear No. 1 Market Position in the Attractive German Property Vertical Offering is Mobile-Optimized 65% of Traffic from Mobile and Growing Strongly Visits per Month (in millions)1 y-o-y growth Visits per Month (in millions)1 (vs. Jun-14) 75 90 25% Desktop Mobile 80 Mobile 61 41% 70 Traffic 26 60 C
Slide 13: Significant Monetization and ARPU Upside at IS24
3 Significant Monetization and ARPU Upside at IS24 Harvest Online Migration Price to Value Evidence from International Peers ROI Proxy Annual Agent Spend Payback Analysis Monthly ARPU (€)3 (Indexed to 100, 2014/2015)1 (# Sales Transactions, 2014)2 y-o-y 9.9% 9.9% 12.4% growth €512 €569 0.5 €424 €466
Slide 14: Significant Monetization and ARPU Upside at IS24
3 Significant Monetization and ARPU Upside at IS24 Membership Model Increases Price Differentiation and Focus on Upsell Until 2010 2011 2012 2013 2014 2015 Initiatives Strategic Premium Products and Packages Membership Model Individualized Pricing Differentiation ● Membership: List-All, Level of Pri
Slide 15: Significant Monetization and ARPU Upside at IS24
3 Significant Monetization and ARPU Upside at IS24 Membership Model Delivers Increased Exposure to Drive Value List Prices¹ Exposure² (for sale properties) Showcase €999 7x 9x Listing Per listing/month VIA Power Premium €149 Products 4x 4x Listing Per listing/month Top €79 2x 2x Listing³ Per listing
Slide 16: A European Automotive Classifieds Leader, with Strong Momentum
4 A European Automotive Classifieds Leader, with Strong Momentum Ad Sales & Other Dealers +19% YoY Countries Listings +8% YoY 1 Evidence from International Peers Systemic Well Monthly ARPU (€)4 Price (€) per Listing5 Launch in H2 2015 Realignment underway 2012-14 1.3% 7.3% CAGR €1,756 €51.2 AS24 Dea
Slide 17: A European Automotive Classifieds Leader, with Strong Momentum
4 A European Automotive Classifieds Leader, with Strong Momentum Delivering on Our Strategy Recent Results Key Initiatives (y-o-Y growth in H1 15) A Upgrade sales team Content Data-driven and ROI-based sales approach +8% Leadership listings1 Simplify private listings insertion B Re-launch mobile web
Slide 18: A European Automotive Classifieds Leader, with Strong Momentum
4 A European Automotive Classifieds Leader, with Strong Momentum A Success in First Campaigns to Establish Content Parity to mobile.de Continuous Growth in Dealer Locations… …and Listings Dealer Locations for AS24 Germany (in ‘000s)1 Total Listings (Dealer and Private) for AS24 Germany (in ‘000s)2 2
Slide 19: A European Automotive Classifieds Leader, with Strong Momentum
4 A European Automotive Classifieds Leader, with Strong Momentum B Improve Consumer Experience and Enhance Audience Reach Established Brand Leadership Strong Traffic Growth, Especially in Mobile Unaided Brand Awareness1 Monthly Visits (in millions)4 43 Aided brand awareness: 95% 37 73% +18% 55% Mobi
Slide 20: A European Automotive Classifieds Leader, with Strong Momentum
4 A European Automotive Classifieds Leader, with Strong Momentum C Accelerate Monetization via Marketing Power Click Map Exposure Key Features VDP1 ● On very top of the list Marketing Power: Tiered Offering Based on ● 30 XXL images Prominence Premium ● Max agent branding features » Launched in Germa
Slide 21: Large Adjacencies that Expand Our Addressable Market and Growth Opportunity
5 Large Adjacencies that Expand Our Addressable Market and Growth Opportunity Scout24 is Extremely Well Positioned for Long-Term IS24 and AS24 have a Significant Audience Overlap1 Growth Unique position to tap large adjacencies at IS24 and c.43% of users AS24 and drive efficiency interested in auto
Slide 22: Large Adjacencies that Expand Our Addressable Market and Growth Opportunity
5 Large Adjacencies that Expand Our Addressable Market and Growth Opportunity Three Approaches to Monetize Audience » Examples: Credit Check, Valuation » Paid-for products that make the +90% Direct searching or listing experience more consumer A Monetization simple and efficient transactions1 (y-o-y
Slide 23: Strong Growth with Increasing Profitability
6 Strong Growth with Increasing Profitability Group Core Operations Revenue and EBITDA Core external revenues1 Key highlights (in €m) IS24 CAGR growth ’12-’14 y-o-y Strong revenue growth driven by ARPU expansion 342 12% Effect of membership model 307 nm 273 9% 188 13% AS24 166 nm Top-line driv
Slide 24: IS24: Platform for Continued Growth
6 IS24: Platform for Continued Growth External revenues1 Key highlights CAGR growth (in €m) Core Agent revenues ’12-’14 y-o-y Accelerating ARPU growth in 231 14% H1 2015 driven by the 177 205 129 15% successful roll-out of the 16% 112 11% membership model 28% 53% Other Agent revenues 12% 11% Rev
Slide 25: AS24: Clear Margin Upside and Growth Potential
6 AS24: Clear Margin Upside and Growth Potential External revenues1 Key highlights CAGR growth (in €m) Core Agent revenues ’12-’14 y-o-y Rapid expansion of dealer 98 107 9% 90 base in Germany on the 51 57 12% back of new sales approach 9% 14% 9% Balanced mix of dealer and 1% ARPU growth in Italy
Slide 26: Increasing Cash Generation
6 Increasing Cash Generation Strong Conversion of EBITDA into Operating Cash Flow 2013 2014 H1 2014 H1 2015 (in €m) (in €m) Core Cash Conversion1 86% 91% 97% 91% 149 135 (14) 98 95 84 87 74 70 OCF OCF (14) (8) Growth: Growth: 61% 23% (3) Core OO Capex Operating Core OO Capex Operating Core OO Capex
Slide 27: Capital Structure
6 Capital Structure Financial Policy Focused on Strong Deleveraging over Time Current Debt (Nominal Value) & Terms Comments Jun-2015 Coupon ● Scout24 is currently rated by Amount Moody’s (B2) and S&P (B) Tranche (€m) Reference Spread Maturity ● Primary Offer net proceeds of at Term Loan B 595.0 EURI
Slide 28: Attractiveness of the Scout24 Business Model
6 Attractiveness of the Scout24 Business Model 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 mode
Slide 29: Thank you
Thank you Page 28
Slide 30: Recent Developments
Recent Developments Portfolio Clean-up and Measures to Consolidate Market Position ● Rationalize portfolio (S24CH, FRS24, PropertyGuru) ● Allow IS24 to move towards one-stop-shop solutions that increase agent ROI and retention (Flowfact) ● Increase consumer touchpoints and subsequently lifetime valu
Slide 31: Continued Strong Leadership in Traffic and Listings After Immonet / Immowelt Merger
Continued Strong Leadership in Traffic and Listings After Immonet / Immowelt Merger Unique Visitors (m, Jun-2015)1 Listings (k, Jun-2015)2 2.1x 1.3x 234 8.2 511 403 (116) 2.7 285 4.0 (1.4) 2.6 Duplicates Immowelt Comp A Comp B Duplicates Comp A + Holdings Comp B (IWH) Source: comScore MMX (June 2015
Slide 32: Below EBITDA Items
Below EBITDA Items Significant Changes Given PPA Effect on D&A, Divested Equity Investments and New Capital and Tax Structures (in €m) 2012 2013 20141 H1 2014 H1 2015 Includes EBITDA of FRS24 (sold in Core ordinary operating EBITDA 74 98 1492 74 95 2014) and EBITDA of others (mainly relating to Fina
Slide 33: Appendix
Appendix Footnotes to p.12 (“Clear No. 1 Market Position in the Attractive German Property Vertical”) 1. Source: comScore MMX (June 2015), persons 15+. Traffic from Germany only (IS24, Immonet, Immowelt), UK only (Rightmove and Zoopla), Australia only (REA and Domain). Desktop only unless otherwise