Company presentation January 2019 - Axel Springer SE
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Company presentation January 2019
Disclaimer
This document, which has been issued by Axel Springer SE (the "Company"), comprises the written materials/slides for a presentation of the
management.
Whilst all reasonable care has been taken to ensure that the information and facts stated herein are accurate and that the opinions and
expectations contained herein are fair and reasonable no representation or warranty, express or implied, is given by or on behalf of the Company,
any of its directors, or any other person as to the accuracy or completeness of the information or opinions contained in this document and no
liability is accepted for any such information or opinions.
This document contains forward looking statements which involves risks and uncertainties. These forward looking statements speak only as of the
date of this document and are based on numerous assumptions which may or may not prove to be correct. The actual performance and results of
the business of the Company could differ materially from the performance and results discussed in this document.
The Company undertakes no obligation to publicly update or revise any forward looking statements or other information contained herein whether
as a result of new information, future events or otherwise.
This document does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe
for, any securities in any jurisdiction, nor shall they or any part of them nor the fact of their distribution form the basis of, or be relied on in
connection with, any contract or investment decision in relation thereto.
2 Company presentation
Axel Springer at a glance
Investment highlights Revenues by segment1 Adj. EBITDA by segment1,2
2%
▪ 81%1 of adj. EBITDA from digital
activities 13% 11%
▪ Classifieds with further double- 38%
Classifieds Media 28%
digit top-line growth and high News Media
61%
margins 47% Marketing Media
▪ Stable adj. EBITDA for News Services / Holding
Media expected 2017-2019 Financials
▪ Focus on classifieds and content 2017 Outlook 2018 (reported) Outlook 2018 (organic3)
▪ Strong underlying FCF and Revenues in €m 3,562.7 Low to mid single-digit % growth Low to mid single-digit % growth
positive effect from real estate EBITDA (adj.) in €m 645.8 Low double-digit % growth Mid to high single-digit % growth
transactions EBITDA margin (adj.) 18.1%
▪ High dividend yield and payout EPS (adj.) in € 2.60 Mid single-digit % growth4 High single-digit % growth5
ratio (2017: 77%) DPS (FY 2017) in € 2.00
1) Based on 9M/18 figures. 2) Negative EBITDA S/H allocated proportionally to operative segments. 3) Adj. for effects from IFRS 16, consolidation and FX effects.
4) Previously: Low to mid single-digit % growth. 5) Previously: Mid to high single-digit % growth.
3 Company presentation
81% of adj. EBITDA from digital activities – digital
revenues with organic growth of 9.1% in 9M/18
Revenues adj. EBITDA
69%
digital
81%
digital
4 Company presentation
Looking back – strong execution on key messages
1 More disclosure on classifieds 2 Stable adj. EBITDA in News Media
▪ Strong organic revenue growth of 10.8% in 9M/18, ▪ Mid-term guidance given: adj. EBITDA to be stable in
driven especially by jobs a range between €225m and €245m for 2017-20191
✓ ✓
▪ Positive response to new single-asset disclosure and ▪ News Media adj. EBITDA 2017: €218.8m
dedicated CMDs in London and New York in June´17
▪ Reorganization of German publishing units
▪ Increased disclosure and better visibility as basis for
re-evaluation of assets (especially of jobs classifieds)
3 Strict M&A discipline in content 4 Leading digital publisher
▪ Guidance given: No loss-making content acquisitions ▪ Focus on classifieds and content
before existing digital content businesses have
▪ Active portfolio management:
proven profitability – focus on organic development
✓ ✓
- Acquisition of Logic-Immo in France
going forward
- Acquisition of minority stakes in Purplebricks in UK
▪ Insider Inc.: organic revenue CAGR 2015-17 of 38% and Homeday in Germany
- Acquisition of Universum (employer branding)
▪ Break-even for Insider Inc. on track for H2/18
- Sale of aufeminin; early sale of Doğan stake
1) Includes changes from the adoption of IFRS 16 and corresponds to previous range of €205m - €225m.
5 Company presentation9M/18 adj. group EBITDA up 14.4%, organic increase
of 6.7%
in €m 9M/18 yoy org.1 Q3/18 yoy org.1 1) Adjusted
for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA.
Revenues 2,326.0 4.7% 3.6% 765.1 2.3% 2.0%
Advertising 1,569.1 8.7% 6.7% 510.3 7.1% 6.0%
Circulation 449.0 -7.2% -5.6% 154.3 -8.6% -7.1%
Other 307.8 4.4% 3.5% 100.4 -1.9% -1.2%
adj. EBITDA 541.4 14.4% 6.7% 186.9 19.7% 12.8%
Margin 23.3% 2.0pp 24.4% 3.6pp
Comments
▪ Organic revenue increase of 3.6% and adj. EBITDA up by 6.7% organically
▪ Consolidation effects mainly from Logic-Immo, Universum and affilinet, deconsolidation of aufeminin
6 Company presentationClassifieds Media: adj. EBITDA up 20.9% in Q3/18
1) Adjusted
for consolidation and FX effects, as well
in €m 9M/18 yoy org.1 Q3/18 yoy org.1 as IFRS 16 effects for adj. EBITDA.
Revenues 890.2 19.4% 10.8% 305.0 19.9% 9.8%
Advertising 860.6 17.5% 11.1% 292.8 17.0% 10.1%
Other 29.6 >100 % -11.6% 12.2 >100 % -10.0%
adj. EBITDA 353.5 15.0% 8.0% 130.2 20.9% 13.7%
Margin 39.7% -1.6pp 42.7% 0.3pp
Comments
▪ Revenue increase driven by strong organic growth (+10.8%) as well as consolidation effects
▪ Adj. EBITDA increase of 15.0% due to organic increase of 8.0% as well as effects from IFRS 16 and
consolidation effects
▪ Margin up slightly in Q3 yoy, 9M/18 margin down due to investments
7 Classifieds MediaJobs classifieds with 16.4% organic growth in 9M/18
and lower margin due to investments
Jobs
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 431.6 20.2% 16.4% 153.6 18.8%
34%
13.6%
adj. EBITDA2 165.7 13.2% 6.6% 67.2 19.8% 13.8%
Margin 38.4% -2.4pp 43.7% 0.4pp
Comments
▪ Strong organic growth of 16.4% in 9M/18, mainly driven by Continental Europe (+22.3% organic)
▪ Organic growth of 13.6% in Q3/18 due to a tough prior year comp
▪ Margin down 2.4pp due to planned investments for future growth in 9M/18, slightly up in Q3/18 –
margin expected to be significantly up yoy in Q4/18
1) Adjusted
for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
8 Classifieds MediaReal Estate classifieds with further good
development in Q3/18
Real Estate
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 278.2 29.1% 6.3% 94.4 30.8% 6.4%
adj. EBITDA2 132.6 20.9% 12.8% 46.8 24.1% 16.1%
Margin 47.7% -3.2pp 49.5% -2.7pp
Comments
▪ Reported revenue growth of 29.1% driven by consolidation effects from Logic-Immo (organic revenue
increase 6.3%) in 9M/18
▪ Re-acceleration of organic revenue growth at SeLoger to high single-digit in Q3/18
▪ Adj. EBITDA up 20.9% (+12.8% organically), decline of reported margin due to integration of Logic-
Immo (4ppts margin increase excl. Logid-Immo), continued strong margin improvement at Immowelt
1) Adjusted
for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
9 Classifieds MediaGeneral/Other with better margin in Q3/18
General/Other
in €m 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 180.4 5.8% 4.4% 57.0 7.8% 5.0%
adj. EBITDA2 63.4 8.6% 4.0% 18.9 14.1% 5.9%
Margin 35.1% 0.9pp 33.1% 1.8pp
Comments
▪ Revenue increase of 5.8% (4.4% organic growth) in 9M/18
▪ @Leisure with improved revenue development following slow start to the year, Yad2 with continued
negative impact from changes in the regulatory environment for real estate
▪ Adj. EBITDA up 8.6% (+4.0% organically) in 9M/18
1) Adjusted
for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA. 2) Total adj. EBITDA of Classifieds Media subsegments does not equal Classifieds Media segment
adj. EBITDA which includes costs of €8.2m in 9M/18 and €6.8m in 9M/17 (thereof business development, M&A and other), not allocated to the three subsegments.
10 Classifieds MediaNews Media revenues only slightly below prior year
1) Adjusted
in €m 9M/18 yoy org.1 Q3/18 yoy org.1 for consolidation and FX effects, as well
as IFRS 16 effects for adj. EBITDA.
Revenues 1,089.6 -0.5% -0.1% 357.6 -3.3% -2.9%
thereof digital 401.5 12.7% 12.1% 135.4 13.2% 11.3%
digital share of revenues 36.8% 37.9%
Advertising 480.6 4.0% 3.2% 150.2 1.9% 1.3%
Circulation 449.4 -7.1% -5.5% 154.3 -8.6% -7.1%
Other 159.6 6.9% 6.9% 53.0 -1.0% -1.0%
adj. EBITDA 165.1 0.0% -8.8% 51.6 -4.8% -13.4%
Margin 15.1% 0.1pp 14.4% -0.2pp
Comments
▪ Revenues down slightly by 0.5%, only minor effects from consolidation and FX
▪ 36.8% of revenues from digital activities
▪ National revenues with tough prior year comps in Q3/18 advertising, international revenue growth driven by
continued strong growth of Insider Inc.
▪ Adj. EBITDA reported on prior year level, driven mainly by effects from IFRS 16 (organically down 8.8%)
11 News MediaOverview News Media National and International
News Media National News Media International
in €m 9M/18 yoy org.1
Q3/18 yoy org.1
9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 781.8 -3.4% -4.2% 257.4 -6.7% -7.5% 307.8 7.6% 11.6% 100.2 6.4% 11.4%
thereof digital 204.6 11.2% 7.8% 69.1 10.4% 6.5% 196.8 14.4% 16.7% 66.3 16.3% 16.5%
digital share of revenues 26.2% 26.8% 63.9% 66.2%
Advertising 307.2 -1.4% -3.6% 92.8 -5.4% -7.8% 173.4 15.1% 17.5% 57.3 16.4% 20.0%
Circulation 359.9 -6.8% -6.8% 126.0 -8.1% -8.1% 89.4 -8.3% -0.3% 28.3 -11.1% -2.7%
Other 114.6 2.8% 3.3% 38.5 -5.1% -5.1% 45.0 18.8% 17.4% 14.5 11.6% 11.8%
adj. EBITDA 115.9 -10.8% -17.4% 35.0 -15.6% -22.5% 49.2 39.8% 23.9% 16.7 30.3% 18.0%
Margin 14.8% -1.2pp 13.6% -1.4pp 16.0% 3.7pp 16.6% 3.1pp
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.
12 News MediaMarketing Media development impacted by organic
EBITDA decline in Performance Marketing
1) Adjustedfor consolidation and FX effects, as well as
in €m 9M/18 yoy org.1 Q3/18 yoy org.1 IFRS 16 effects for adj. EBITDA.
Revenues 306.8 -8.9% 1.3% 89.0 -19.0% 0.8%
Advertising 227.9 -8.3% -0.8% 67.4 -14.5% 1.1%
Other 78.9 -10.7% 8.0% 21.6 -30.3% -0.1%
adj. EBITDA 62.7 11.4% 8.9% 16.0 0.6% 6.9%
Margin 20.4% 3.7pp 18.0% 3.5pp
Comments
▪ Revenues down yoy due to deconsolidation of aufeminin. Organic revenues up 1.3% in 9M/18 yoy: Reach-
based marketing slightly below 9M/17 (-0.8%) due to US exit of Bonial in Q4/17, Performance Marketing with
organic increase of 4.8%
▪ Adj. EBITDA up 11.4% (+8.9% organically). Reach Based Marketing adj. EBITDA with strong organic increase
of 22.4% due to US exit of Bonial, Performance Marketing with significant decline of 20.2% due to lower
incoming orders, negative FX effects especially from the US business and higher integration costs due to the
affilinet merger
13 Marketing MediaOverview Marketing Media Subsegments
Reach Based Marketing Performance Marketing
1 1
in €m 9M/18 yoy org. Q3/18 yoy org. 9M/18 yoy org.1 Q3/18 yoy org.1
Revenues 176.3 -22.2% -0.8% 46.7 -36.5% -1.4% 130.5 18.3% 4.8% 42.3 16.4% 3.6%
Advertising 150.6 -19.7% -2.7% 42.6 -27.9% -0.3% 77.3 26.7% 4.0% 24.8 25.6% 4.1%
Other 25.7 -34.2% 13.5% 4.1 -71.7% -13.4% 53.2 7.9% 5.7% 17.5 5.5% 3.1%
adj. EBITDA2 46.3 6.2% 22.4% 11.3 -7.8% 28.6% 22.6 17.4% -20.2% 6.7 13.9% -29.4%
Margin 26.2% 7.0pp 24.3% 7.6pp 17.3% -0.1pp 15.7% -0.3pp
1) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.
2) Total adj. EBITDA includes costs of €6.2in 9M/18 and €6.6m in 9M/17 (thereof business development, M&A and other), not allocated to the two pillars.
14 Marketing MediaAdjusted eps with strong increase in Q3/18
in €m 9M/18 9M/17 Q3/18 Q3/17
adj. EBITDA 541.4 473.4 186.9 156.1
yoy change 14.4% 19.7%
Depreciation / amortization (excl. PPA) -153.5 -100.0 -52.4 -34.1
adj. EBIT 387.9 373.4 134.5 122.0
Financial result -14.8 -7.7 -5.3 -6.0
Taxes -116.4 -121.2 -41.7 -41.1
adj. net income 256.7 244.4 87.4 74.9
thereof attributable to non-controlling interests 32.4 30.7 9.4 10.6
1
adj. eps 2.08 1.98 0.72 0.60
yoy change (reported / organic) 5.0% / 6.7% 21.5% / 24.4%
Non-recurring effects 53.6 -31.3 -6.0 -14.1
Depreciation / amortization, and impairments of PPA -76.3 -73.8 -29.2 -21.2
Taxes attributable to these effects 13.4 24.1 9.6 6.8
Net income 247.4 163.4 61.9 46.4
1) Based on weighted average number of shares outstanding in 9M/18: 107.9m (9M/17: 107.9m).
15 Company presentationNet financial debt higher because of IFRS 16 –
FCF in line with expectations
1 2
Net financial debt of €1,317.4m in September 2018 (leverage 1.8x )
Free cash flow (FCF) in €m Impact of leasing liabilities on net financial debt
▪ Net financial debt includes leasing liabilities of €359.6m (PY: €0.3m), thereof
268.5 280.3 €153.6m due to lease of Axel-Springer-Passage and high-rise headquarter in
Berlin since January 1, 2018
226.3 220.9
▪ Net financial debt less effects from leasing liabilities €957.8m
Positive effects on cash flow going forward
▪ Net positive cash inflow of ~€165m until 2020 from sale of new Berlin building
(purchase price of €425m and tax payments of ~€30m expected in Q4/19 and
capex and sale related costs of ~€230m in 2018-2020)
9M/17 9M/18 9M/17 9M/18
FCF FCF excl. effects from headquarter real estate transactions
1) Excl. pension liabilities. 2) Based on Bloomberg consensus for adj. EBITDA 2018.
16 Company presentationInvestments of ~€200m in early-stage portfolio since
2012
The strategic reasons for corporate early-stage investments
I Gain market insights and know-how III Create early M&A access points
II Learn about potential disruptors IV Financial upside
Selected Cases
17 Company presentationGroup guidance 2018 confirmed and increased for
adjusted eps
Reported Organic
(adjusted for effects from the adoption of IFRS 16 as
well as consolidation and FX effects)
Revenues Low to mid single-digit % growth1 Low to mid single-digit % growth1
Group adj. EBITDA Low double-digit % growth Mid to high single-digit % growth
Increased to:
2 3
adj. eps Mid single-digit % growth High single-digit % growth
1) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption.
2) Previously: Low to mid single-digit % growth. 3) Previously: mid to high single-digit % growth.
18 Company presentationSegment outlook 2018: Guidance downgrade for
Marketing Media Reported Organic
(adjusted for effects from the adoption of IFRS
16 as well as consolidation and FX effects)
Classifieds Revenues Double-digit % growth Low double-digit % growth
Media adj. EBITDA Double-digit % growth High single-digit to low double-digit % growth
News Revenues Low to mid single-digit % decline Low single-digit % decline
Media adj. EBITDA Mid single-digit % growth Low to mid single-digit % decline
Decreased to:
Marketing Revenues1 Low double-digit % decline2 Roughly on prior year level3
Media adj. EBITDA Mid to high single-digit % decline4 Low to mid single-digit % decline5
Services/ Revenues Mid single-digit % decline Mid single-digit % decline
Holding adj. EBITDA Low to mid single-digit % growth6 Low to mid single-digit % growth6
1) Revenue outlook based on 2017 revenues restated for negative effect of IFRS 15 adoption. 2) Previously: High single-digit % decline. 3) Previously: High single-digit % growth. 4) Previously: High single-digit %
growth. 5) Previously: Low double digit % growth. 6) Improvement/smaller negative EBITDA.
19 Company presentationClassifieds Media
Classifieds Media: leading digital classifieds operator
Overview
Classifieds Media
Jobs Real Estate Cars
▪ #1/2 in France
▪ Leading digital classifieds ▪ #1 in Germany, Belgium ▪ #1 in France
operator Generalist
▪ #1 in Israel
▪ Portfolio of market leading ▪ #1 in UK ▪ #2 in Germany
Vacation Rental
classifieds: 76%1 of revenues ▪ #1 in Netherlands &
from #1 market positions ▪ #1 in Ireland, South Africa ▪ #1 in Belgium Belgium
▪ Digital classifieds clear
beneficiary of structural shift Financials
from offline to online 2017 Outlook 2018 (reported) Outlook 2018 (organic2)
Revenues in €m 1,007.7 Double-digit % growth Low double-digit % growth
▪ Strong market positions High single-digit to
yielding high margins EBITDA (adj.) in €m 413.2 Double-digit % growth
low double-digit % growth
EBITDA margin (adj.) 41.0%
1) Based on FY/17 figures. 2) Adj. for effects from IFRS 16, consolidation and FX effects.
21 Classifieds MediaIn 9M/18, digital classifieds contributed 61% to
adj. Group EBITDA
Long-term adj. Group EBITDA development driven by classifieds
Adj. EBITDA1 in €m 646 +15%
595
559 541
499 507 473
448 454
392 413
355 354
305 308
218
164
134
65
17
2010 2011 2012 2013 2014 2015 2016 2017 9M/17
9M/2017 9M/18
9M/2018
Axel Springer Group 57% 58% 61%
Axel Springer Classifieds
X% Share of Group EBITDA (negative EBITDA S/H allocated proportionally to operative segments) 1) excl. discontinued operations.
22 Classifieds MediaClassifieds with strong organic growth and high
underlying margins
Revenues EBITDA margin, adj.
Organic growth
yoy 2015 2016 2017 9M/2018 Margin 2015 2016 2017 9M/2018
Jobs +21.2% +17.6% +17.0% +16.4% Jobs 43.7% 42.9% 41.7% 38.4%
Real Estate +4.8% +6.3% +10.8% +6.3% Real Estate 46.4% 44.9% 50.4% 47.7%
General/Other +4.0% +9.7% +6.3% +4.4% General/Other 30.7% 32.7% 32.0% 35.1%
Total classifieds +12.9% +12.5% +12.7% +10.8% Total classifieds 40.5% 40.3% 41.0% 39.7%
23 Classifieds MediaMinority investments in hybrid agent models
▪ Clear market leader in the UK in the new segment of ▪ 50/50 holding company with UK market leader
transactional digital real estate platforms, also active in Purplebricks
Australia, the USA and Canada
▪ Acquisition of 22% stake in Homeday in October 2018
▪ April 2018: Purchase of 11.5 percent in Purplebricks (on top of 4% owned by Axel Springer already)
through capital increase and purchase of secondary
▪ Commission based business model
shares from existing holders; purchase price amounts
to a total of GBP 125m, corresponding to a price per ▪ Potential from additional revenue pool
share of GBP 3.60 ▪ Participation in innovative business model in German
▪ July 2018: Increase to 12.5 percent paying GBP 3.07 real estate market
per each additional secondary share (total of GBP 9m)
▪ Listed on the London stock exchange since Dec. 2015
▪ Board seat for Axel Springer
24 Classifieds MediaThe underlying markets of our assets show attractive
dynamics
Total online and offline marketing spend, 2012-2016 (in €m)
Jobs
Germany UK
+2% +2%
1,091 1,170 906 991
50% 36% 21%
71%
50% 64% 79%
29%
2012 2016 2012 2016
Real Estate
France Germany Belgium
+1% +4% +3%
781 799 488 571 83 92
48% 35% 31% 44% 33%
48%
52% 65% 52% 69% 56% 67%
2012 2016 2012 2016 2012 2016
Source: OC&C (05/2017) CAGR Offline Mkt Spend Online Mkt Spend
25 Classifieds MediaThe future of our markets: shift towards online
and constant growth continues
Total Marketing Spend by Channel, 2016-2020F (in €m)
Jobs
Germany UK
1,447 991 1,031
1,170 15%
37% 21%
50%
+12% 63% 79% +3% 85%
50%
2016 2020F 2016 2020F
Real Estate
France Germany Belgium
799 903 571 723 92 102
35% 6% 28% 9% 23% 33% 5% 27%
31%
65% 72% 69% 77% 67% 73%
2016 2020F 2016 2020F 2016 2020F
Source: OC&C (05/2017) CAGR Offline Mkt Spend Online Mkt Spend
26 Classifieds MediaStepStone: High organic revenue growth
Operational update 9M/18 Financials
in €m 9M/18 9M/174) yoy organic5)
▪ Swedish employer branding specialist Universum
acquired in Q2/18 Revenues2) 431.6 359.2 20.2% 16.4%
Continental 299.3 243.1 23.1% 22.3%
▪ Start of ‘The Partnership’ (Totaljobs & Jobsite)
UK 92.4 88.1 4.9% 6.3%
with joint offer in Q2/18 SAON Group 30.3 28.3 7.2% 9.5%
▪ Candidate delivery ahead of competition in nearly EBITDA3) 165.7 146.4 13.2% 6.6%
all areas
Continental 153.8 136.8 12.4% 9.2%
▪ Main market Continental Europe continues to be UK 11.7 13.0 -9.7% -25.8%
growth driver with increasing customer number SAON Group 9.2 9.5 -3.9% -5.6%
(+8%) and high retention rate at 88%1) Margin 38.4% 40.7% -2.4pp
1) Both figures per LTM Sept-18. 2) Minor revenues recorded centrally and attributable to few operational entities
Continental 51.4% 56.3% -4.9pp
(mainly Universum) are not presented since those are not recorded in operational subgroups. 3) Combined adj.
EBITDA of subgroups does not equal sub-segment as central costs (mainly non-licensed product development costs) UK 12.7% 14.8% -2.0pp
and a few entities (mainly Universum) are not recorded in operational subgroups. 4) Including meinestadt.de which was
allocated to Jobs from General/Other in 2018 5) Adjusted for consolidation and FX effects, as well as IFRS 16 effects
for adj. EBITDA.
SAON Group 30.2% 33.7% -3.5pp
27StepStone Group: Full year organic growth
expected on prior year level
Group revenue and organic growth (€m)
in €m in % ▪ Q3/17 with strongest growth
+17% +~17%
350 25 rate due to additional revenues
22% on top of annual contracts
300
19% 20 ▪ 2018 revenues split more
17%
250 16% 16% evenly across the quarters due
14% 14% to larger annual contracts
200 15
154 ▪ H1/18 EBITDA decreased due
150 131 135 143
123 10 to investments in brand and
108 111 candidate delivery
100
55 67 5
42 46 54 47 52
50
0 0
Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18
Organic revenue growth Revenue EBITDA Note: meinestadt.de included from Q1/18 following re-allocation to Jobs (from General/Other).
28Continued double-digit organic growth expected
for 2018
StepStone Group Revenue (in €m)
496
410
+29%
17% ~17%
organic growth
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ¹ 2018
1 Including meinestadt.de which was allocated to Jobs from General/Other in 2018.
29Goal to become a comprehensive E-Recruiting
company
Career
guidance Orientation
Search jobs
Career
development
Browse jobs / be found
Hire / Sign contract JOB SEEKER JOURNEY Research employer
Interview
Research salary
Follow-up Check cultural fit
Applications
Application
Job seeker journey
30Companies are charged for listings and access to
candidate profiles
Job Listings Direct Search Employer Branding
Highly scalable with low Effective process to fill highly specific Targeted branding products to
total cost per hire for positions, but high cost per hire and help employers stand out among
recruiter difficult to scale for recruiter our candidates
Revenue share
2008
88% 6% 6%
(GER/UK)
2017
88% (98% / 61%) 10% (1% / 34%) 2% (1% / 5%)
31StepStone Continental: Continued strong
organic growth
Financial development by subgroup¹ (in €m)
Revenue EBITDA
+22%
+24% 58% 58% 59%
+27% +33% 54% 56%
51%
+26% +23%
+27%
StepStone
Continental +27%
159 202 257 343 243 299 92 117 151 186 137 154
2014 2015 2016 20172 9M/17 9M/18 2014 2015 2016 20172 9M/17 9M/18
1)All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product
development costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational
subgroups. 2) Including meinestadt.de which was allocated to Jobs from General/Other in 2018. Organic growth EBITDA Margin
32StepStone Continental: #1 positions in candidate
delivery in most core markets
Candidate Delivery¹ - StepStone Continental
Germany Belgium Austria
StepStone DE 14.9 StepStone BE 13.3 derStandard 19.7
Stellenanzeigen 5.9 Indeed Karriere.at 17.4
7.8
Linkedin 5.5
Regiojobs 7.6 StepStone AT 16.3
Monster 4.9
Jobat 6.9 kurier.at 13.1
Jobware 3.9
Linkedin 5.7 Monster 6.6
Indeed 3.7
Meinestadt Vacature 4.1 Indeed 3.9
3.5
Xing 3.0 Monster 3.5 Linkedin 1.7
1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers.
33StepStone Continental: Increasing customer
numbers and high retention rates
Customer number (k)1 Customer Retention Rate (%)2
StepStone Continental
LTM figures are pro forma including StepStone Continental
meinestadt.de, Turijobs and iciformation
CAGR +8% 96% 97% 98% 98%
+11%
97.2
90.1
71.7
StepStone 64.4
57.7
Continental 86% 88% 87% 88%
2015 2016 2017 LTM LTM 2015 2016 2017 LTM
Sept-17 Sept-18 Sept-18
Large customers Overall Retention
1)Customer count based on active contracts in a year except StepStone Germany, meinestadt.de and TJG where end customer (listing owners)
are counted. 1st time inclusion: Ictjob (Q3/17), meinestadt.de and Turijobs (both Q1/18). 2) All subgroups reported based on pro forma development; based on invoiced sales.
34StepStone UK: Upside potential from
‘The Partnership’
Financial development by subgroup¹ (in €m)
Revenue EBITDA
+3% +7% +6% 29%
+8% 24% 15%
+67% -8% 20% 13% 13%
+/-0%
+5% 38
StepStone 19 24
16 13 12
UK 78 130 119 118 88 92
2014 2015 2016 2017 9M/17 9M/18 2014 2015 2016 2017 9M/17 9M/18
▪ Totaljobs acquired early 2012, Jobsite late 2014
▪ Introduction of ‘The Partnership’ creates upside
potential from more attractive offer to customers and
also from synergy effects on the cost side (e.g.,
integrated platforms and overhead functions)
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not presented, non-licensed product development
costs are not recorded in operational subgroups, Universum (among others) is not allocated to one of the operational subgroups. Organic growth EBITDA Margin
35‘The Partnership’: From separate companies, brands and
cultures to one unified organization
Market facing effects
▪ One company, one platform, one sales force Oct. 2017 Oct. 2018
▪ More compelling business proposition KPI Jobsite Totaljobs Partnership1
▪ One CV-database # Applications /
1.5m 3.8m 6.3m
▪ Best-in-class candidate delivery month
Conversion rate
Internal effects 0.22 0.25 0.26
(appl./ visit)
▪ Efficient traffic sourcing
▪ Cost efficiencies CV database 3.8m 11.8m 18.3m
▪ Improved IT development effectiveness
LinkedIn2: ~25m
Resulting in CV-
~13m
▪ Improved retention and share of wallet 1)Incl. StepStone UK verticals.
Library2:
2)Linkedin: number of registered users
▪ Accelerated new business per Oct 2018 (source: Statista); CV- Reed2: ~11m
Library and Reed numbers as stated
▪ Wider market coverage on respective websites per Nov 2018.
36StepStone UK: High values in relevant KPIs
Candidate delivery1 Customer number (k)2 Customer Retention Rate (%)4
‘The Partnership’ with negative technical impact on 95% 95% 93% 93%
TotalJobs 23.1 LTM Sept-18 due to deduplication of contacts.
Indeed 17.0 CAGR
+3%
Jobsite 14.7 43.8 -2%
41.3 41.8
Reed 11.6 41.0
80% 82% 81% 80%
StepStone
CV Library 10.7
UK 36.9 3
Monster 4.2
Linkedin 2.8
2015 2016 2017 LTM LTM 2015 2016 2017 LTM
TotalJobs and Jobsite with
Sept-17 Sept-18 Sept-18
combined potential of 37.8
Large customers Overall Retention
1) 3)Changed business focus of Jobsite after acquisition, removed low value contracts. 4) Retention rates LTM September 2018 temporarily
Average # of applications per job ad. Source: TNS, figures are corrected
for outliers. 2) Customer count based on active contracts in a year. affected by launch of ‘The Partnership‘ which caused phasing of contract renewals from customers of both TotalJobs and Jobsite who
decided to renew after expiry of both former contracts; all subgroups reported based on pro forma development; based on invoiced sales.
37SAON Group: Strong organic growth rates
Financial development by subgroup¹ (in €m)
Revenue EBITDA
40%
14 34% 30% 33% 34%
37% 30%
+9% 12 30%
+10%
+11%
+15% 10 20%
SAON +11% 8
+14%
Group +30% +7%
8 10 10 12 10 9 10%
34 119 6
23 30 34 30 38 28 30
4 0%
2014 2015 2016 2017 9M/17 9M/18 2014 2015 2016 2017 9M/17 9M/18
▪ SAON Group acquired in late 2013, CareerJunction (South Africa) in 2015
▪ Growth in almost all countries around the world
1) All subgroups adjusted to current company structure, minor revenue recorded centrally is not
presented, non-licensed product development costs are not recorded in operational subgroups,
Universum (among others) is not allocated to one of the operational subgroups. Organic growth EBITDA Margin
38SAON Group: Best in class in candidate delivery
Candidate Delivery¹ - SAON Group
Ireland South Africa3
Jobs.ie 22.3 Pnet 153.9
CJ 65.5
Irishjobs 17.5
Indeed 48.7
Indeed 17.1
Careers24 33.7
2
NIJobs 9.5 Linkedin 13.4
Linkedin 8.7
Facebook 4.1 1) Average # of applications per job ad. Source: TNS, figures are corrected for outliers.
2) NIJobs is the leading player in Northern Ireland.
3) Results of competitors may be unstable across the surveys due to low sample sizes.
39SAON Group: Stable customer numbers and
improving customer retention
Customer number (k)1,2 Customer Retention Rate (%)3
StepStone Continental StepStone Continental
88% 86% 88%
CAGR 0% 82%
+5% 14.7 14.7
14.6
14.1
SAON
Group 13.2 74% 75%
72% 73%
2015 2016 2017 LTM LTM 2015 2016 2017 LTM
Sept-17 Sept-18 Sept-18
Large customers Overall Retention
1)Customer count based on active contracts in a year. 2) Restated figures. Tecoloco companies now included in complete history.
Figures subject to adjusted counting methodology. 3) All subgroups reported based on pro forma development; based on invoiced sales.
40Growth cases in Austria and France progress
Austria: From #4 in 2014 to clear #21 France: #6 at start of growth initiatives -
First payoff from investments1
Invoiced sales Invoiced sales
30.9% >20% ~40%
7.6%
0.6%
2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018
pre investment enhanced (ongoing) investments pre investment enhanced invests
+26% Candidate delivery YoY, +130% increase in +98% Candidate delivery YoY, +25% increase in
sales efficiency2 sales efficiency2
Investments in sales (headcount, tooling) and marketing Investments in same areas as in Austria: Focus on
(traffic acquisition & branding) sales and traffic
1)
Market positions in terms of revenue. 2) E.g. call activities in telesales.
Source: Company reports and management estimates.
41Increased sales headcount and improved efficiency
Customer acquisition Exemplary Sales Professional journey
Target long tail of the market to gain market share
Smart and predictive lead generation Hire
▪ 1-3 months: Onboarding
Customer retention
▪ 4-6 months: Small targets & first deals
Hyper-care for key customers
▪ 6-9 months: Being profitable
Increased frequency of sales activities
▪ +9 months: Contributing to StepStone growth
Customer development
Closer, more intense customer approach (field & inside sales)
Growing support and analytics for sales force
Additional sales headcount¹
Improved sales efficiency via tech and tooling
1) Attrition of existing sales heads to be decreased through improved training, compensation and benefit packages; Improvement in HR and branding to attract new talent.
42Customer focus: More listings require StepStone to
acquire even more candidates in a flat market
Web search for keyword ‘jobs’ in DE Candidate Delivery (CD)
Contradicting trends show
75 +6.8%
0.9%
0.0% shortage of candidates
+6.6% 17.19
16.62
14.92
50 -10% +13%
2.48 2.52
2.24
25
0
2013 2014 2015 2016 2017 2018 Mar 2016 Mar 2017 Mar 2018
Sources: TNS; Google trends. Relative CD vs next competitor Candidate Delivery
43StepStone has a diversified traffic mix
StepStone traffic sources (exemplary, FY17)
Strategic traffic network
SEA
Partner ▪ StepStone has in total ~450 traffic partners
Other Paid ▪ Top partners include well known brands such as
JobAgent Bild, Handelsblatt, T-Online, Kimeta, Gehalt.de
SEO
and Experteer
Direct Organic
Other Organic (~40%) Paid ▪ The network is characterised by portals that
(~60%) provide a large / national reach. StepStone’s
network is by far the largest in the market
Source: Adobe Analytics; Other Paid includes Banner and Retargeting; Other Organic includes Mailings, Newsletter, Referrers and Social Media.
44For IT and Engineering StepStone already takes
highest click share on Google Paid Ads
Google Clickshare for paid
Global Clickshare IT ▪ A third of clicks following all job related
searches @Google lead to StepStone
▪ For IT job related searches almost half of
46 % clicks following
Google searches for all clicks lead to StepStone
keywords related to
IT jobs ▪ Google searches related to engineering
33 % Engineering
jobs result in a click for StepStone in 68%
of cases
68 % clicks following
Google searches for
SEA
Relates to /
clicks following Google searches keywords related to optimises
for all job related keywords engineering jobs SEA traffic
Source: Google data Q3/18, comparison for top-5 competitors for paid clicks.
45Participation in Google for Jobs is decided
individually, market by market
United Kingdom (G4J live since July 2018): StepStone UK is fully integrated with Google for Jobs
▪ Fragmented market situation – all major competitors (except Indeed) are integrated
▪ StepStone UK participates for now, but invests in parallel in unique content and branding
▪ Measurable effects so far: Net gains in applications from Google SEO traffic (organic blue links plus Google for Jobs)
South Africa (G4J live since March 2018): Pnet and Careerjunction do not participate
▪ StepStone assets are in a leading position and own a large share of unique content (jobs)
▪ There is no benefit to provide content to Google for free
▪ No negative effects so far for Pnet and CareerJunction
Spain (G4J live since June 2018): Turijobs does not participate
▪ Turijobs is a leading niche player in hospitality with a high brand recognition and unique content
▪ No negative effects so far for Turijobs
46Introducing the AVIV group: Our goal - to capture
the full potential of the next period of growth
Frame joint long-term strategy and support
execution
Group ▪ From classifieds to transactional marketplaces
COO ▪ (Early-stage) investments into value chain extension
Steer strategic group projects
▪ Joint business initiatives (e.g. seller leads)
Management Board
▪ Initiatives to “grow together” in group
Decrease time to market
▪ Reuse newly built components to test ideas
Group ▪ Share AI algorithms
GTO ▪ Share product & technical designs
Increase efficiency
1
▪ Align IT platforms
▪ Mutualize training, consulting and IT investments
1) Among others; minority investments.
47 Classifieds MediaOur three priorities allow us to tap into large
markets beyond listings
Total addressable adjacent Our three priorities
markets
~2 bn€
Providing the agent with additional core
Agent commission Mortgage 1 services
pool ~1.63 bn€1
~6 bn€
Home insurance
Marketing spending ~160 m€2
~650 m€ Satisfying even more consumer needs
2
Moving with our hybrid agent models
~250 m€3
Online Classifieds
~350 m€ 1 2 3 Capturing adjacent markets with
3 transaction-triggered services
Seller Hybrid Adja-
leads models cencies
1) 2) 1% of total market. 3) 5% of total market. Sources: OC&C (05/2017), McKinsey. Notes: Marketing spending includes spending of agents, property developers and private sellers in online and offline channels. Figures apply to German RE market.
48 Classifieds MediaSeLoger margin decline due to consolidation of
Logic-Immo
Operational update 9M/18 Financials
▪ Closing of Logic-Immo acquisition in Q1/18
▪ Joint product offering of SeLoger and in €m 9M/18 9M/17 yoy org.3)
Logic-Immo started in September 2018
Revenues 158.8 104.3 52.2% 5.2%
▪ SeLoger ARPA (incl. verticals) increases by EBITDA 76.4 61.2 24.8% 9.3%
6% yoy to €762 in 9M/18 Margin 48.1% 58.7% -10.6pp
▪ # of professional listings1) on Seloger.com: 995k
(Logic-Immo: 720k, pre deduplication)
▪ Unique users2) of seloger.com up 5% to 5.8m,
unique user of logic-immo.com +3% to 2.9m
1) Source: autobiz; monthly listings, 9M/18 average.
2) 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.
Source: Médiametrie 9M/18 vs 9M/17.
49Real estate market in France is still buoyant and
online classifieds are expected to continue to grow
Structural tailwind in French real
estate market supports… …growth in all online channels beyond classifieds
LTM cumulated existing home sales transactions in k, 02/2012 – In €m CAGR
10/2018, France1 CAGR +3% CAGR
+1% 903 (16-20F)
1,000
781 799 19% +1%
21% 20% 9% -8%
Offline 14%
27% 25% +6%
750 22% +5%
17%
Online 47%
35% 43%
500
2012 2016 2020F
Feb 12 Oct 18
1)Sales of individual houses and apartments sold by the unit, excluding any professional premises, whole multi-apartment
buildings and ancillary premises (cellars, parking spaces, fractions of common condo property, etc.) sold separately. Other Offline Advertising Other Online Advertising
Source: OC&C (05/2017), Conseil Général de l’Environnement et du Développement. Print Advertising Online Classifieds
50SeLoger will close another strong year reconfirming
its leading position
Constant roll-out of new products has been valued Historical Revenue and EBITDA performance
by customers
Average monthly ARPA made with professional customers, in € Revenues and EBITDA in €m1
CAGR CAGR
2011-2017 +6%
762 +10%
800 +9% 719 159
676 724 140
+9% 615 128
496 549 660 116
424 456 628 106 104
594 632 +5% 91 98
400 544 80 76 82 76
483 71
382 406 440 53 58 62 61
43
0
2011 2012 2013 2014 2015 2016 2017 9M/17 9M/18 2011 2012 2013 2014 2015 2016 2017 9M/17 9M/18
SeLoger excl. verticals Revenues EBITDA
1) excl. effects of Poliris business, deconsolidated in 2016. SeLoger incl. verticals
51Also on the professional listings side, SeLoger
maintained its strong position
Average of monthly listings 9M/18 in k1
1,276
995
+2%
720 766
523 543
Source: autobiz. private listings
52The merger helps SeLoger and Logic-Immo to close
gaps in previously underserved areas
SeLoger – Traffic SeLoger + Logic-Immo – Traffic
# Visits
High
Low
53Incremental listing potential from Logic-Immo
results in leading position for pro listings in France
# of resale pro listings / Estimated # of incremental listings
January 2018 - pre-merger with Aval / Logic-Immo aquisition
840k ≈ 50k ≈ 900k
840k ≈ 150k ≈ 1,000k
Sources: Autobiz / internal analysis.
54SeLoger and Logic-Immo are commercially tapping
the potential through DUO offer
▪ Add-on enables agents +
to extend their listings
publication to the other
site +900 customers
▪ Preparing the new with an add-on
„Full Duo“ offer
in 2019
+50k listings on
SeLoger or
Logic-Immo
55“Seller lead” strategic initiative has already
demonstrated high performance at SeLoger
▪ Launched at SeLoger in January 2018,
visibility and lead generation product
▪ Dedicated organization as a
new market
▪ Logic-Immo seller product on pre-sale
to be launched in January 2019
▪ SeLoger will extend to premium qualified
leads and luxury market by 2019
≈900
▪ AVIV Group strategic initiative with
synergies among assets: shared price
SL Customers
estimate engine with Immoweb,
based on AI
56Immowelt: Margin significantly up at 40%
Operational update H1/18 Financials
▪ ARPU increases by 12% yoy to €324 in 9M/18 in €m H1/18 H1/17 yoy org.2)
▪ Focusing on DUO ≥ 5 customers going forward Revenues 58.2 54.3 7.3% 7.3%
▪ Visits1) at 43.3m (+/-0% yoy) EBITDA 23.3 18.3 27.7% 23.7%
Margin 40.1% 33.7% 6.4pp
▪ # of residential listings1) at 173k (-11%) yoy
1) Source: company information; monthly visits/listings, 9M average. 2) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA.
57Positive outlook for online property portals –
9% annual growth in Germany expected until 2020
+3% annual growth in agent ... fuels favourable marketing spend
commission pool until 2020 ... for online property portals
Agent commission pool (bn €) Property marketing spend (in €m)
CAGR
+3% +6%
6.4 723 16-20F
+6% 5.7 0.7 Rental +2%
+4%
0.6 571
4.5 +10%
488
0.8 -4%
5.7 Sales
5.1
3.7
407 +9%
287
176
2012 2016 2020F 2012 2016 2020F
Sources: Immowelt, OC&C (05/2017; Other offline adv. Print adv.
German residential real estate only). CAGR Other online adv. Online portals
58DUO migration completed and focus on customers
with higher volumes
DUO ≥ 51 customer base with high ARPU achieved significant growth since March 2016
Number of agents in Germany2 (in thousands)
DUO ≥ 5 DUO 1-2 Single/Double DE IS24 core agents
22.1 22.3 22.6 22.8 22.6 22.4 22.0 22.0 21.7 21.0 19.9
18.5 17.6 17.4 17.4 17.2 17.5
17.0 17.0
13.8 14.8 15.5 15.4 15.1 15.3 14.9 15.0 15.7
11.9
9.1
Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18
1) DUO: 1 contract, 2 portals / Single: 1 contract, 1 portal / Double: 2 contracts, 2 portals / GER only; the “DUO x” contract allows the simultaneous listing of x properties during the contract time (x slots), DUO ≥
5 refers to any DUO contract with at least 5 slots. 2) Real estate professionals with a term contract (term usually 12 months).
59The German listings market is contracting
Decline due to increasingly overall stagnating offer Comments
Listings in German housing market1 (average per month in
▪ Listings in Germany have been under pressure
thousands)
over the past years
-5% ▪ Decrease driven by an overall stagnating offer in
300 300 the German housing market
▪ In order to mitigate the decline in listings
250 250
-11% Immowelt actively takes counteractions:
200 200 ▪ Increasing product and price differentiation to
activate further potential listings
150 150
▪ Individual and temporary flat-options for
100 100 agents based on their DUO contracts
50 50
0 0
9M/17 9M/18
Houses, apartments for sale and rent in Germany; Direct comparison with IS24 only partly possible due do different package models.
1)
Source: IW management estimate and internal data collection.
60ARPU with strong growth over the last quarters –
increased value creation for agents drives growth
Contract migration and price increases drive ARPU1 growth … …but still below main competitor
ARPU (€/month) ARPU (€/month)
+13%
+16%
763
338
306 314 320
291 300
268 279
258
Q3/18
shows first 294
effects of
DUO 1-2
migration2
Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 2017
1) ARPU = Average Revenue Per User: monthly revenues, divided by the number of agents (Immowelt Group DUO and non-DUO agents in Germany with a term contract). 2) “DUO x” contract allows the
simultaneous listing of x properties during the contract time (x slots); currently all customers with a DUO 1 or DUO 2 contract are being migrated on DUO contracts with at least 5 slots.
612018 will be another successful year for Immowelt –
Strong profitability increase expected
Revenue growth of 7% from 9M/17 to 9M/18 EBITDA margin reaching 40% this year
Revenue (€m) EBITDA (€m, % of revenue)
Margin target reached one year
+13%
earlier than guided in 2017
111 +7%
98 20% 34% ~40%
88
82
+93%
>40%
37
19
20%
2016 2017 9M/17 9M/18 2016 2017 2018e
62Immoweb with high single-digit revenue growth and
strong margin
Operational update H1/18 Financials
▪ ARPA increases by 5% yoy to €540 in 9M/181) in €m H1/18 H1/17 yoy org.3)
▪ # of listings1) up by 6% yoy to 153k Revenues 21.8 20.0 9.2% 8.9%
EBITDA 14.1 13.1 8.0% 8.0%
▪ Real visitors2) down by 5% with a monthly
Margin 64.8% 65.5% -0.7pp
average of 1.5m in 9M/18
1) Source: company information, 9M/18 average.
2) Source: CIM, 9M/18 average. 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
63Solid market growth over the last decade translated
into online marketing budgets
Belgian property market is very stable… …and relevant budgets are expected to expand
Indexed property sale transactions in Belgium, 2005–2016, 2012 = 100 Property Marketing spend by channel, in €m
+3% CAGR CAGR
130 +3% (12-16) (16-20F)
102
92
83 18% -3% -2%
109 22% 9%
27% 11%
102
Offline 17% -7% -2%
100
17% 16%
14% +6% +4%
Online 51% 56%
42%
+8% +5%
70
2012 2016 2020F
2006 2008 2010 2012 2014 2016
+11%
CAGR 2013-2016
Sales Transactions Index Other Offline Advertising Other Online Advertising
Average Sales Price Index Source: Statistics Belgium, OC&C (05/2017). Print Advertising Online Classifieds
64Immoweb: THE reference for property search
…and when it comes to real estate, 8 out of 10 Belgians
“Belgians have a brick in their stomach…” think of Immoweb
Home ownership rate by country in 2016 Unaided awareness questionnaire with 7.2k respondents in 09/2016
+24pp
70%
x12.4
78%
58%
46%
6%
2%
Germany1 France Belgium
Source: OC&C (05/2017), Produpress study, Eurostat
1) Latest available 2014.
65Immoweb outraces Belgian competition
in market reach
Immoweb attracts almost twice as many visitors than …leading to strong and highly engaged traffic on
#2 competitor… Immoweb
Average of monthly real visitors in 9M/181 Average of monthly audience statistics on Top3 RE portals in 9M/181
15m 153m minutes
9%
20%
10%
22%
1.9x 2.0x
81%
58%
Visits Time spent
Source: CIM, Statistics Belgium. 1) Selected players (excl. app traffic).
66Immoweb: Consistent revenue and EBITDA growth
Successful growth of ARPA over the
...results in strong revenue growth at leading EBITDA margins
last years...
Weighted average monthly ARPA from professional
customers, in € CAGR
in €m
+10%
CAGR +5% 40
36
+10% 33
31
27 25 26
22 22
20 20
16 14
540 13
460 514 515
350 385 410
2013 2014 2015 2016 2017 9M/17 9M/18 2013 2014 2015 2016 2017 H1/17 H1/18
61% 64% 67% 70% 67% 66% 65%
Revenues EBITDA EBITDA margin
67Car&Boat Media: Organic growth driven by ARPU
increase
Operational update H1/18 Financials
▪ ARPU up by 11% yoy to €451 in 9M/18 in €m H1/18 H1/17 yoy org.3)
▪ # of professional customers1) slightly (-1%) Revenues 31.3 29.5 6.2% 6.2%
below prior year at 8.4k EBITDA 15.2 13.7 10.4% 7.2%
Margin 48.4% 46.5% 1.8pp
▪ # of professional listings1) down by 1% yoy
to 271k
▪ Unique visitors2) up by 19% to 4.5m
1)Source: company information; monthly, 9M/18 average
2) Source:Mediametrie (9M/18 vs 9M/17); limited comparability of 9M/18 figures to prior-
year period due to new methodology regarding the measurement of mobile traffic
3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
introduced by Mediametrie in 9M/18
68LaCentrale works with professionals
that have a significant used car activity
Professional listings Listings per professional1
(in k, monthly average 9M/2018) (in k, monthly average 9M/2018)
447 32
-39% +68%
271 19
Sources: Company Information
1) Professional ads divided by # of professionals on platform.
69Stable traffic and listings development versus
next competitor
Total listings Traffic development since Apr. ’15 Listings development since Apr. ’15
(in k, monthly average)1 (Index = 100) (Index = 100)
Traffic
12.0m 4.5m
9M/2018
907
461
298
27
447
271
2015 2016 2017 2018 2015 2016 2017 2018
Private
Professional 1) Listings are based on 9M/18 figures. Sources: Company Information.
70Carboat Media has benefited from constantly
growing monetization
9.000 Monthly customers: 8,280 490
8.000 €463
440
7.000
6.000
390
Avg. ARPU
5.000 growth 7%*
340
4.000
3.000
290
2.000
1.000 240
Jan 2009 Sept 2013 Sept 2018
Monthly customers * CAGR 10/13-09/18.
Monthly ARPU (in €) Source: Company Information.
71Carboat Media developed its EBITDA positively
since AS acquisition
AS acquisition: July 2014
Revenues & EBITDA (in €m)
CAGR CAGR
+4% +14%
+10%
55.2 59.4
50.5 52.1
48.2 48.5
45.2
31.3
27.0 29.5
24.3
18.7 20.8 20.3 20.9 20.9
13.7 15.2
2011 2012 2013 2014 2015 2016 2017 H1/17 H1/18
Revenues
EBITDA
72Yad2 with headwind from FX and slower organic
growth due to difficult real estate market
Operational update1) H1/18 Financials
▪ # of listings: 413.8k (-4% yoy) in 9M/18 in €m H1/18 H1/17 yoy org.2)
▪ Unique visitors down by 13% to 2.4m Revenues 18.9 20.1 -6.0% 1.1%
(9M/17: 2.7m)
▪ Visits down by 7% to 11.2m (9M/17: 12.1m)
1) Source: company information; monthly listings/UVs/visits 2) Adjusted for consolidation and FX effects
73Yad2 is best positioned to further grow its
business along three strategic initiatives
1
Israel’s #1 Generalist
#1 #1 #1 Become #1
Real Estate Cars Second Hand in Jobs
1 Organic Growth
Comission-based Commercial &
luxury real estate
business models 2 Getting closer to the transaction
New car & Financing, loans,
tire sales insurance products
3 Explore adjacent opportunities
74Strong network effects provide Yad2‘s customers
with significant liquidity and reach
Listings Visits
(in k, monthly average 9M/18)1 (in m, monthly average 9M/2018)2
2nd Hand Real Estate Cars Jobs
187 143 7.5 76 8 414 11.2
>2x >23x
>9x >25x
Sources: 1) Company Information, 2) Similarweb, desktop & mobile traffic
75Yad2 revenues impacted by regulatory changes in
real estate and negative FX in 2018
Revenue Development
28% 25% 13% 9% 1% Leading revenue stream impacted by
regulatory changes
40.0
34.9 Second largest revenue stream. Since 2013
26.9 paid classifieds product for car dealers
18.4 20.1 18.9
Gaining importance since Drushim acquisition
in 2015 with goal of becoming clear #1
20141 2015 2016 2017 H1/17 H1/18
Revenues in €m
Organic YoY growth
Sources: Company Information, Drushim acquisition closed in Sept. 2015.
1) 2014 represents FY as AS acquisition closed in May.
76@Leisure with improved performance following
slow start to the year
Operational update H1/18 Financials
▪ Full service (Belvilla, Land & Leisure): in €m H1/18 H1/17 yoy org.3)
pro forma booking value1) down in 9M/18 by
Revenues 73.2 69.1 6.0% 2.7%
10% yoy to €177m
EBITDA 17.1 14.9 14.5% 3.4%
▪ Self service (Traum-Ferienwohnungen): Margin 23.3% 21.6% 1.7pp
total listings2) in Europe up in 9M/18 by
10% yoy to 84k
▪ Disposal of casamundo in Q3/18
1) Source: company information
2) 3) Adjusted for consolidation and FX effects, as well as IFRS 16 effects for adj. EBITDA
Source: company information, 09/17 vs. 09/18
77@Leisure focuses on the supply/homeowner side of
the market
Homeowner
Full-service
>31k Inventory
Aggregator Guest
Secondary
homes
Self-service
>84k Inventory
Primary
homes
Source: Company information per Q3/18.
78Companies offer differing service levels, take rate
increasing with the service level
Full Service Additional services
Key Exchange
Full-service and cleaning
Pricing
management
Content
management
Self- Customer
Service
Calendar
Service Management
Booking, Invoice &
Cash Collection
Acquisition of
Guests
Acquisition of
Homeowners
Self Service Take
2% 15% 30% 50% rate
Note: Graph shows simplified competitive landscape. Because of hybrid models, landscape is more complex than depicted.
79@Leisure with “buy and build” strategy
@Leisure full year revenue and EBITDA (€m) Notes
▪ H1 with higher revenues and EBITDA (margin) due
125 to seasonality (Q1 strongest quarter in vacation
rentals)
90 ▪ Outlook: Further investments into post-merger
69 73 integration, data and product offerings in 2018,
55 mid-term return to ~20% EBITDA margin
20% 11 15% 14 16% 19 22% 15 23% 17
2015 2016 2017 H1/17 H1/18
Revenue as reported EBITDA as reported
x% EBITDA margin
80News Media
News Media segment at a glance
Overview
News Media
▪ Focus on market-leading media
brands with clear path to digitization National International
▪ BILD group ▪ Insider Inc.
▪ National News Media dominated by
unique asset BILD ▪ eMarketer
▪ WELT group ▪ upday
▪ Presence in English-speaking media (formerly: WELTN24 group)
market with Insider Inc. and ▪ Ringier Axel Springer Media
eMarketer (Poland, Hungary, Serbia, Slovakia)2
▪ Innovative mobile news service for (Main activities) ▪ Ringier Axel Springer Schweiz3
Samsung devices (upday)
Financials
2017 Outlook 2018 (reported) Outlook 2018 (organic4)
▪ Guidance for stable EBITDA (adj.) Low to mid
Revenues in €m 1,509.8 Low single-digit % decline
in News Media in a range between single-digit % decline
€225m - €245m for 2017-20191 Low to mid
EBITDA (adj.) in €m 218.8 Mid single-digit % growth
single-digit % decline
1) Including
changes from the adoption of IFRS 16 and EBITDA margin (adj.) 14.5%
corresponds to previous range of €205m - €225m. 2) Fully consolidated (50% stake). 3) Consolidated at equity. 4) Adj. for effects from IFRS 16, consolidation and FX effects.
82 News MediaGlobal reach: more than 300 million monthly unique
users worldwide Total net reach 2018:
>300m monthly UU
Total net reach 2013: Axel Springer Digital/Print
>85m monthly UU
Axel Springer Digital/Print Digital 2018
(including Upday and
Insider Inc.):
Print 2018
Print 2013 53m 290m
Digital 2013
69m
49m
Source: Various national sources for net reach, overlap of print and digital readership estimated based on selected country data.
83 News MediaMonetizing content in digital: positive development
600.000
Digital subscribers
500.000
85,661
400.000
422,043 +11.9%
300.000 November 2018
52,672 vs.
200.000
200,571
November 2017
100.000
0
May-14 Jan-15 Sep-15 May-16 Jan-17 Sep-17 May-18
Source: IVW.
84 News MediaInsider Inc.: Market leader in the US
Revenue development in $m Traffic comparison (unique visitors, m)
80
CAGR 70
2015-17
60
+38% 50
40
+46% 81
40% 56 49% 53% 30 35% 37% 42
43 +30% %
20
10
2015 2016 2017 2018e
0
▪ Revenue CAGR 2015-17 of 38% Jan May Sep Jan May Sep Jan May Sep
▪ Profitable in 2018 YTD 16 16 16 17 17 17 18 18 18
▪ Re-invest near-term profits in growth opportunities; ▪ Leading digital brand for business journalism
subscriptions, commerce, editorial, original programming
▪ Strengthened market leadership in 2018
▪ Long-term EBITDA margin of 20%+
Source: Comscore.
85 News MediaeMarketer – leading provider of high-quality research
and digital market data for companies and institutions
Company profile High customer satisfaction and retention
Renewal Rate (in %) Recapture Rate (in %)
by subscription type1 by subscription type1
▪ Founded in 1996; based in New York City
103.2
▪ ~1,200 corporate subscribers (2/3 of Fortune 500 and 91.6
98.1
89.1
2/3 of US top national advertisers) 83.3
73.7 76.3 78.3
▪ ~10,000 citations in worldwide media per month
▪ Highly profitable business model with margins 40%+
2016 2017 2016 2017
Limited Seat Open Access
1) As of December 31. Source: Company information.
* Based on FY/15 revenues of $45.5m.
86 News Mediaupday: Key player in the news aggregator space and
continued growth – break-even expected in 2019
Monthly active users (in millions) Monthly unique users (in millions)
30 Google Apple
upday News News
25
20
12.2 2.3 N/A
15
10 8.2 1.8 10.8
5 7.3 2.1 N/A
0
Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
Source: Comscore, October 2018.
87 News MediaMarketing Media
Marketing Media segment at a glance
Overview
Marketing Media
Reach Based Marketing Performance Marketing
▪ #1 positions in all major
marketing business models ▪ Idealo ▪ Awin
▪ Bonial
▪ European market leader Awin
in performance marketing ▪ Finanzen.net
merged with affilinet
▪ Sale of aufeminin closed as of (Main activities)
end of April 2018
Financials
2017 Outlook 2018 (reported) Outlook 2018 (organic1)
Revenues in €m 984.5 Low double-digit % decline2,3 Roughly on prior year level2,4
EBITDA (adj.) in €m 95.6 Mid to high single-digit decline5 Low to mid single-digit % decline6
EBITDA margin (adj.) 9.7%
1) 2) Revenue
Adj. for effects from IFRS 16, consolidation and FX effects. outlook based 3) Previously: High single-digit % decline. 4) Previously: High single-digit % growth.
on 2017 revenues restated for negative effect of ~€500m from IFRS 15 adoption. 5) Previously: High single-digit % growth. 6) Previously: Low double-digit % growth.
89 Marketing MediaYou can also read
