Annual and sustainability report 2021
Hemnet Group 2021
Annual and sustainabilityreport
Table of contents
This is Hemnet 2 Our history 4 CEO comments 6 2021 in numbers 8 Our offering 11 Our strategy 13 Financial targets 14 Hemnet as a workplace 17 The Hemnet share
Sustainabilityreport 18 Sustainability efforts 24 Risk analysis 25 Approach 26 Report on the Sustainability Report Administration report 27 The financial year 2021 30 Corporate governance report 36 Board of Directors 38 Management 40 Distribution of earnings
Financial statements 42 Consolidated income statement
43 Consolidated statement of financial position 44 Consolidated statement of changes in equity 45 Consolidated statement of cash flows 46 Notes, Group 63 Income statement, Parent company 64 .Balance sheet, Parent company 65 Report of changes in equity, Parent company 66 Statement of cash flows, Parent company 67 Notes, Parent company 69 Auditor’s report
Pages 27-68 cover Hemnet Group AB (publ) annual report and consolidated financial statements and have been reviewed by the company’s auditor, Ernst & Young AB. An audit report can be found on pages 69-70. This publication is a translation of the original Swedish text. In the event of inconsistency or discrepancy between the Swedish version and this publication, the Swedish language version shall prevail.
The #1 real estatemarketplace inSweden
355 (+76%) Million ADJUSTED EBITDA
Million NET SALES 728 (+34%)
61 Million MONTHLY VISITS 2)
86% OF PROPERTY BUYERS TURN TO HEMNET FIRST WHEN LOOKING FOR A NEW HOME 3)
90% SOLD PROPERTIES IN SWEDEN LISTED ON HEMNET 1)
#5 SWEDEN’S FIFTH STRONGEST MEDIA BRAND 5)
#3 SWEDEN’S THIRD MOST GENDER- EQUAL PUBLIC COMPANY 6)
37 Min THE AVERAGE TIME EACH SWEDE SPEND ON HEMNET EVERY MONTH 4)
1) Hemnet andSCB (theSwedishCentral Bureauof Statistics), regards secondhandmarket. 2) Google Analytics. 3) NepaHemnet consumer report Q32021. 4) Hemnet andSCB. Refers toall Swedes over the age of 14. 5) YouGov Hemnet BrandIndex September 2021. 6) The Allbright Foundation.
Hemnet’s history
Hemnet was founded byand for the real estate broker industry
1998
2009
Hemnet’s own organisation is set up and the first employees are recruited. The iOS app is launched.
Hemnet is founded at the initiative of the Swedish real estate broker industry.
First steps taken to commercialise
2017
2015
2013
Hemnet takes an important step in its commercialisation journey by starting to charge property sellers. A part of the fee goes back to the real estate agent to compensate for administration.
General Atlantic and Sprints Capital acquire a majority stake in Hemnet. Together withMäk- larsamfundet, the new owners invite Hemnet employees and real estate agents to invest in the company.
The pricing model for a property listing on Hemnet (later named Hemnet Bas) becomes more dynamic, and is based on the property asking price.
Product expansion and accelerated growth
2018
2019
2020
2021
Hemnet launches its first value-added service to property sellers - Raketen.
Hemnet continues to develop its offering to property sellers and launches the value- added services Hemnet Plus and Hemnet Premium.
Hemnet grows in revenue, traffic and employees despite a challenging year with Covid-19. The new value-added services become an established part of Hemnet’s offering.
Hemnet introduces segmented pricing for all listing products as well as a new compensation model for real estate agents. Hemnet is listed on Nasdaq Stockholm.
The key to your property journey
For over 20 years, Hemnet has been the most efficient meeting place in the housing market. A hub for everyone in Sweden looking to make the most important investment of their lives; selling their home or finding a new home. At Hemnet, we build lasting relationships with buyers, sellers and the real estate agent industry. Driven by a common passion for homes, we are the independent go-to place that enables property journeys. We increase efficiency, transparency andmobilityon the housingmarket.
CEO report
WE HAVE MADE IT EVEN MORE EFFICIENT TO ADVERTISE YOUR HOME ON HEMNET We want to give home sellers the best possible conditions for a smooth property transaction by maximising exposure on Sweden’s largest housing platform, in an efficient way reaching virtually all those interested in real estate in Sweden. During the year, we have made several improvements of our value-added services to home sellers. We have made Hemnet Plus and Premium ads evenmore visible, built up a smoother purchasing flow, addedmore data on the running performance of listings onHemnet and simplified for real estate agents to recommend our various products to their customers. This has jointly contributed to our value-added services for home sellers increasing in popularity and at the end of the year, more than every third listing on Hemnet was upgraded to one of our expanded packages. INCREASED INVESTMENT IN OUR PRODUCT OFFERING TO REAL ESTATE AGENTS AND OTHER PARTNERS Hemnet’s success is based on strong relationships with the estate agent industry, property developers, banks and other companies close to the housing business. We want to offer these players the best opportunities to build their brands and business by reaching Hemnet’s audience. It is gratifying to see that virtually all major players in these categories are investing more in our various subscription and advertising products, and we see great potential for Hemnet to be able to add even more value and increased business opportunities to this target group. In 2022 we will therefore accelerate our investments and develop even more effective products for our business partners. WE STRENGTHEN OUR EMPLOYER BRAND AND IMPROVE OUR SUSTAINABILITY EFFORTS When I started at Hemnet, it was clear tome that Hemnet offered a great service and was a well-known brand, but that the company was relatively unknown as an employer. Hemnet’s development is entirely dependent on our ability to attract newmembers to our teams. We are constantly refining our offer to our employees and we strive to be an inclusive and gender-equal workplace with a strong and values-driven culture where people with different experiences and backgrounds thrive. Throughout the year, we have been pleased to see that our efforts are also being noted by the world outside of Hemnet. In September, the Allbright Foundation named Hemnet as one of the three most gender-equal companies on the stock exchange, and when the people analytics company Nyckeltalsinstitutet surveys equal working conditions for men and women in Swedish working life, Hemnet qualifies within the top ten percent of employers in the country. We have come a long way in four years, but we continue our efforts to become the best employer possible. As Hemnet grows, sustainability issues become increasingly important for us. During the year, we have therefore reviewed our sustainability efforts with a clearer framework for how we work with and report on our impact on the world around us. You can read more about the result of this work on page 18. WE ARE AT THE BEGINNING OF OUR JOURNEY I want to thank the Hemnet team for a fantastic and intense year. Together, we have made Sweden’s largest housing platform even better, and laid the foundation for our continued journey. We look forward to taking new steps in the new year together with our employees, customers and partners to create an even more transparent, efficient and mobile housing market.
2021 has been a unique and eventful year for Hemnet during which we have taken many significant and important steps as a company. We have improved our users’ experience and launched a number of updates to our offering, implemented important updates to our business model, strengthened our employer brand, updated our sustainability efforts and completed a successful IPO. EXCEPTIONAL GROWTH IN 2021 2021 is our most successful year so far. Net sales amounted to SEK 728.1 million (SEK 544.1 million), which is an increase of 33.8 percent compared to 2020. Adjusted EBITDA amounted to SEK 355.0 million, compared to SEK 202.1 million in the previous year, an increase of 75.7 percent. The main factor behind these results is a strong growth in the average revenue per property listing, ARPL, which has increased from SEK 1,760 to SEK 2,467. The increase is explained by the fact that we have enhanced the value of our products leading to more home sellers choosing to upgrade their listing on Hemnet and that we have implemented a segmented pricing of our basic offering, Hemnet Bas. The performance was also driven by an update in our compensation model for real estate agent offices at the beginning of the year. Net sales from property sellers were also positively affected by a very active housing market. Sweden has a stable housing market driven by consumer mobility rather than by speculation and cyclical fluctuations. This means that, historically, the volume of homes for sale has had a stable development from year to year. In the wake of Covid-19 and the fact that the pandemic has contributed to an increased interest in the home, we have seen a more active housing market than usual. This has been reflected in record traffic to Hemnet and higher listing volumes than normal during parts of the year. In total, we had 4.8 percent more listings on our platforms in 2021 compared to 2020. THE FIRST CHOICE FOR ANYONE LOOKING FOR A HOME IN SWEDEN Hemnet is the first choice for those looking for a new home in Sweden. This is also the reason for our high traffic during the year, with an average of over 60 million visits to our various platforms each month. Our strong position was also evident when the market research company YouGov ranked Sweden’s biggest brands in terms of image, with Hemnet ending up in the top five of the country’s media brands. We will maintain and extend our position by continuing to deliver added value to our visitors. We want to create a more tailored experience and transparently share market data with consumers to help them take the next step in their housing journey, while at the same time contributing to increased mobility in the housing market. For example, we added more information about the price development of homes for sale during the past year. We have also improved the logged-in experience and made it easier to save property listings and previous searches. We see great opportunities in an increased personalisation and want to give consumers more reasons to visit Hemnet, also when they are not actively looking to buy or sell a home.
Cecilia Beck-Friis , CEO, Hemnet
CEO REPORT
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 5
2021 innumbers
NET SALES 1)
Revenues increased from all income streams, mainly driven by revenues from the number of published listings and value-added services.
800
728 MSEK
+ 34 %
640
480
320
160
0
2017
2018
2019
2020
2021
ADJUSTED EBITDA 1)
Adjusted EBITDA increased by 76 percent in 2021, as a result of high operating leverage coupled with strong revenue growth, and focus on cost control.
350
355 MSEK
+ 76 %
280
210
140
70
0
2017
2018
2019
2020
2021
AVERAGE REVENUE PER LISTING (ARPL)
Revenue frompublished listings continues tobeHemnet’s largest revenue streamand in2021 the number of listings increased4.8 percent compared to2020. ARPL continued togrowas a result of pricingof products for home sellers and increasing sales of value-added products.
2 500
2,467 SEK
+ 40 %
2 000
1 500
1 000
500
0
2017
2018
2019
2020
2021
TIME ON SITE 2)
On average, every adult Swede spent 37minutes on Hemnet every month during 2021. The pandemic generated a record interest in homes. During the autumn of 2021 the extreme interest weakened somewhat, but Hemnet use remained at higher levels than prior to Covid.
65
63.7 Mhours
-1 %
52
39
26
13
0
2017
2018
2019
2020
2021
NUMBER OF VISITS PER MONTH 2)
During 2021, on average, Hemnet had more than 60 million visitors per month. This makes us Sweden’s largest residential property platform by far. The pandemic years led to record traffic and at the end of 2021 traffic was at levels well above 2019.
65
61.4 Mvisits
-2 %
52
39
26
13
0
2017
2018
2019
2020
2021
1) Figures for 2017 refer to consolidated accounts of Hemnet Group AB, prepared in accordance with IFRS, with the addition of the Hemnet Sverige Group’s results for January 1-8, 2017, when this was acquired by the new group on January 9, 2017. 2) Hemnet and SCB (Central Bureau of Statistics). Refers to all Swedes over the age of 14. 3) Google Analytics
6 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
2021 IN NUMBERS
Our offering
Undisputedmarket leader
Hemnet has an unmatched brand recognition, awareness and preference among Swedish property portals, and 9 out of 10 properties sold in Sweden are listed on our platforms during their sale cycle.
Hemnet is the obvious go-to place for buying and selling real estate in Sweden. Since our launch in 1998 our traffic has steadily grown, and Hemnet is the clear traffic leader among Swedish real estate portals. During 2021, a total of 63.7 million hours was spent
on Hemnet. This is equivalent to an average of 37 minutes per Swede, making Hemnet not only one of the most popular digital platforms in the country, but also a source for entertainment and inspiration.
1 2 3 4 5
Number 5 on YouGov’s list of the strongest brands in the in the Swedish media industry (Spotify, Netflix, Google and YouTube before Hemnet).
>95%
90% About 9 out of 10 properties of all homes sold through a real estate agent on the second-hand market in Sweden are listed on Hemnet *
#5
awareness among home buyers and sellers **
* Hemnet and SCB (Central Bureau of Statistics). ** Nepa Hemnet consumer report Q3 2021
Strong network effects create value for the housingmarket Hemnet’s network effects
PROPERTY SELLERS
PROPERTY BUYERS
n
REAL ESTATE AGENTS
OTHER BUSINESS PARTNERS
Behind Hemnet’s strong position in the Swedish housing market lies our strong network effects. In an accessible, intuitive, transparent and informative environment, we make the housing market easily accessible to home buyers, while at the same time enabling home sellers and real estate agents to expose a home for sale to the largest and most relevant audience. As we have grown and developed our offer, an increasing number of home buyers, home sellers and real estate agents choose to use Hemnet, which
has made us the go-to place for the various players in the housing market. This has enabled us to create even more value for our main target groups. Our network effect is based on home sellers and real estate agents benefiting from more home buyers on Hemnet, while home buyers conversely benefit from more home sellers and real estate agents on the platform. At the same time, our large and relevant audience creates value for our business partners who want to reach the largest relevant audience for their products.
8 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
OUR BUSINESS
Aunique businessmodel Hemnet’s business model is different to those of our international peers for a number of reasons. Firstly, Hemnet has a direct relationship with the property seller, who pays for the listing on Hemnet, providing an efficient channel through which products aimed at this target group can be sold. Secondly, Hemnet has a win-win partnership with the real estate agents, where Hemnet provides a significant revenue stream for the agent offices. This is a result of the compensation model agreed upon by Hemnet and the real estate agencies, where part of Hemnet’s income goes back to the agency offices as compensation for their
work with information and administration on behalf of Hemnet, and where an upselling commission goes to offices choosing to actively resell Hemnet’s entire product portfolio. Furthermore, Hemnet is an important marketing channel for the real estate agents, property developers and other professionals in the property sector or adjacent sectors. This is due to our large reach and relevant audience of people in all different phases of their property journey, many of whom state that they are actively looking for a new home.
EFFICIENCY AND MAXIMISED POTENTIAL SELLING PRICE Payment for listing and value-added services
WIN-WIN Administration compensation and sales commission
SELLERS Looking for a seamless, fast and cost-efficient transaction
REAL ESTATE AGENTS Marketing, generating customers, analysing markets
Listing administration and recommendation
BUSINESS PARTNERS
AUDIENCE
VISITORS Browsing for inspiration among listed homes
BUYERS Searching for their next home
DEVELOPERS Marketing properties and advertising
BANKS Advertising and getting leads
ADVERTISERS Advertising to reach a relevant audience
Essential factor behind Hemnet’s success
Net sales by customer group
Hemnet’s revenue comes fromproperty sellers as well as professional partners. The majority of our net sales was attributed to home sellers. In 2021, this customer category accounted for 66 percent of net sales. In the same period, real estate agents accounted for 13 percent, property developers for 8 percent and other business partners for 13 percent. Net sales from property sellers consists of Net Sales from listing fees (Hemnet Bas) and value-added services (Hemnet Plus & Hemnet Premium, Raketen, and Republishing). Net sales from real estate agents and other business partners is today mainly derived from display-related advertising, however Hemnet has a broader product
portfolio including subscription products (for example Hemnet Business) and value-added services (for example Mäklartipset) that are aimed towards real estate agents. Hemnet’s key focus over the past few years has been developing value-added services for property sellers. While we will continue to develop this part of our offering, we will also increase our focus on our business partners. Going forward, we see great potential in enriching our product offering to both real estate agents and property developers, with the aim of growing our partners’ businesses, as well as our own.
REVENUE FROM SELLERS 2021 (66% OF NET SALES)
REVENUE FROM AGENTS 2021 (13% OF NET SALES)
REVENUE FROM OTHER BUSINESS PARTNERS 2021 (21% OF NET SALES)
Other
Developers
MSEK 482
MSEK 95
MSEK 151
10 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
OUR BUSINESS
Hemnet’s growth strategy is built on our vision to be the key to your property journey and sets the framework for howwe will achieve our financial and strategic targets. It is based on three pillars focusing on our key customer groups: Our strategy
Real estate agents and business partners Create unrivalled products to meet the needs of real estate agents and other business partners Hemnet is a central destination for all stakeholders of residential real estate transactions in Sweden. Over the years, Hemnet has developed a portfolio of B2B products offered to real estate agents, property developers and other advertisers. The demand for these products is high and we see a big potential in further capitalising on this strong market position by continuing to develop and offer better solutions to our customers´ challenges than what can be found on the market today, as well as working more efficiently with segmented pricing. Business partners such as real estate agents, property developers and banks are believed to spend only a small part of their total marketing spend on Hemnet today, relative to the size and value of Hemnet as a platform. We see an opportunity for Hemnet to take a larger share of this spend.
Consumers
Home sellers
Growing loyalty beyond the buy-sell moment
Making upgraded listings the obvious choice
Hemnet is the market leader for targeting active home buyers and sellers. This is the foundation of our business model as well as our unique differentiator in the market. Hemnet helps the millions of consumers visiting our various platforms every week to scan and research the market. By collecting Sweden’s housing market in one place, we make it convenient and seamless to find or sell a property. Yet we believe we can provide even more value to consumers and contribute to the mobility of the property market by expanding our offering and coming in at an earlier phase of the property journey. Creating a long-lasting relationship with consumers is the key to strengthening Hemnet´s
As the largest propertymarketplace in the country, we want to offer the best possible conditions for everyone advertising their home on Hemnet to reach a maximumnumber of pros- pective buyers. To help property sellers get the most out of their property sale, Hemnet has created a range of value-adding products with the goal of maximizing the exposure of the property listing to Hemnet’s large audience. Over the last fewyears, we have continuously worked to improve the functionality of these products in order to create evenmore value for our customers, which has alsomade the products increasingly popular. Inparallel we havemade improvements the purchase flow for these products, our upsell process and in howwework with pricing. During 2021 we also updated our compensationmodel to real estate agents, giving agents a clearer incentive to recommend our additional products. Our close collaboration with real estate agents, our most important partners, also enables us to continuously improve our products and help sellers maximize the value of their property transaction.
leading market position and opening up to future growth opportunities.
OUR STRATEGY
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 11
Financial targets
Hemnet has a scalable business model underpinned by good opportunities for future growth andmargin expansion. Our financial targets are:
Growth 15-20%
Profitability 45-50%
40
50
32
40
24
30
16
20
8
10
0
0
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Hemnet aims to achieve annual net sales growth of 15–20 percent.
Hemnet aims to achieve an adjusted EBITDA margin of 45–50 percent in the medium term.
Leverage <2.0x
Dividendpolicy >1/3
10
1.0
For the Board’s proposal regarding dividend to the 2022 Annual General Meeting, see Distribution of earnings on page 40.
8
0.8
6
0.6
4
0.4
2
0.2
0
0
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Hemnet aims to achieve a Net Debt to Adjusted EBITDA of less than 2.0x.
Hemnet aims to pay an annual dividend amounting to at least one third of the profit after tax. In the event that the company has excess liquidity, it must be returned to shareholders through, for example, extra dividends or share repurchases.
FINANCIAL TARGETS
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 13
Hemnet as aworkplace At Hemnet we always strive tomove forward. We take pride in creating aworking environment where people thrive and growandwherewe all work together to create Sweden’s #1 residential real estatemarketplace.
Our core values
We listen and act
We alwaysmove forward
We succeed together
Our culture rests on three core values that guide us in our interactions within and outside the company, in our way of working and in how we behave and treat each other: We listen and act, We always move forward and We succeed together. Our values help us when setting our strategies as well as in making everyday decisions.
Voices fromthe Hemnet team
“At Hemnet we are constantly working on solving our users’ problems when buying and selling a home. Always pushing ourselves forward is an important part of addressing these challenges. As a Product Manager, living by our values helps me prioritise making a difference for our users in our development efforts. Challenging, agile, collaborative, and fast-paced are some words that I think describe our culture. I work in a highly adaptive environment where I amconstantly challenged to tackle things head-on, often together with amazing colleagues.”
“Helpful, playful and encouraging is how I describe Hemnet. We basically have the enthusiasm and desire to experiment you would find in a small startup, and the know-how and opportunitites of a bigger company. It’s the best of both worlds if you ask me! We truly care about what other colleagues think and take that into consideration when we’re planning our work or evaluating initiatives. Hemnet is very democratic in that way. But it also means that we always listen to our users’ opinions and encourage them to give us feedback.“
“For me, succeeding together is a big part of the Hemnet culture. To understand the bigger scope of what we are trying to achieve at Hemnet - to actively seek for the ideas and perspectives of others, both my colleagues and our users. Succeeding together is to humbly understand that what I do, or what we do as a team, affects other people and because of this, we are always striving to develop together. For some people this might sound difficult, but for me it’s not - because we really do this together. That is why I enjoy being part of Hemnet.“
Michelle, Product Manager
Magnus, Copywriter & Customer Communication
Adina, Developer
14 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
HEMNET AS A WORKPLACE
Diversityand inclusion
Awarded for gender equality
60% Women
40% Men
L
10 IN SWEDEN TOP
Awarded as the third most gender- equal Swedish public company by the Allbright Foundation.
Gender equality starts at the top. We are proud to be a tech company with an equal management team and that 60 percent of all of our managers are women.
Appointed Excellent Employer by Nyckeltalsinstitutet through belonging to the10 percent most gender-equal employers in Sweden.
Diversity creates a workplace for people to thrive in
15
#4
112 Employees
Attracting new talents is one of our most important focus areas. During 2021 we welcomed 23 new co-workers to Hemnet.
People from all over the world work at Hemnet. Today, our employees come from15 different countries.
Ranked as number 4 among media companies where Swedes would most like to work*.
* source: YouGov
”Hemnet shouldbe an inclusive and gender-equalworkplace” Cecilia Beck-Friis, CEO
HEMNET AS A WORKPLACE
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 15
The Hemnet share 2021 is Hemnet’s first financial year as a public company, following a successful listing on Nasdaq Stockholmon 27 April 2021. The total return on Hemnet’s ordinary share was 45 1) percent since the IPO in 2021, compared to a 13 percent return in the OMXSPI during the same time period.
Ownership structure Hemnet had a total of 11,840 shareholders as of 31 December 2021. In terms of numbers, private individuals are the largest category of owners, while institutional owners dominate in terms of share capital. Ownership by employees Hemnet has in place a long-term incentive program (LTIP) for key individuals. As of the 31 Dec 2021, 32 individuals have subscribed to the program, of the 33 that were offered to subscribe. In order to remain a competitive employer, retain competence and align interest with employees, the board will be seeking the AGM’s approval for the second tranche of the LTIP program, further expanding the number of Hemnet employees invested in Hemnet. Furthermore, the board will also propose to the AGM a shares savings scheme to further enable employee share ownership. Dividend policy and proposal to the Annual General Meeting 2022 Hemnet’s dividend policy is to distribute one third of the annual profit after tax. If the company has surplus liquidity, it shall be returned to the shareholders through, for example, special dividends or share buybacks. The proposal to the 2022 AGM is a dividend of SEK 0.55 per share, and that the AGM authorises the Board of Directors to implement a buy-back programme over a twelve-month period, amounting to a maximumof 10% of the total shares outstanding.
HEMNET’S SHARE PRICE AGAINST THE INDEX 2021
SEK
250
200
150
Ownership structure - the 10 largest owners
100
Number of shares*
May
June July
Aug
Sep
Oct
Nov
Dec
Name
Capital
Verified
General Atlantic 31,167,733 30.82% 2021-12-31 Mäklarsamfundet Bransch I Sverige 10,113,148 10.00% 2021-12-31 Sprints Capital Management LTD 8,924,357 8.82% 2021-12-31 Pierre Siri 3,548,721 3.51% 2021-12-31 Baillie Gifford & Co 1,984,940 1.96% 2021-11-30 SEB Fonder 1,730,722 1.74% 2021-12-31 Government of Singapore (GIC) 1,747,550 1.73% 2021-12-31 Brown Capital Management, LLC 1,731,100 1.71% 2021-12-31 Fidelity Investments (FMR) 1,725,245 1.71% 2021-11-30 ODIN Fonder 1,630 000 1.61% 2021-12-31 * Holdings as of 31 December 2021. Direct and nominee registered holdings with NCSD. Filing dates for foreign owners may vary. Foreign custodian banks are excluded. Source: Modular Finance
The Hemnet share
OMXSPI
Stock exchange listing On 27 April 2021, Hemnet’s series A share began trading on Nasdaq Stockholm. The listing price was SEK 115 per share, which corresponds to a market value for all listed ordinary shares in the company of SEK 11,630 million at the time of the listing. The offer consisted of 17,890,403 ordinary shares, representing approximately 17.7 percent of the total number of ordinary shares of the company offered by General Atlantic, Sprints Capital and Care of Hemnet as well as a number of other shareholders, including certain board members and senior executives. Turnover In 2021, the turnover of Hemnet’s ordinary shares on Nasdaq Stockholm amounted to 57.9 million shares. This corresponds to a turnover rate of 60 percent. On average, 329,000 Hemnet shares were traded per day.
OWNERSHIP BY COUNTRY, % OF CAPITAL 2)
Facts in brief Stock exchange ISIN code / Ticker
United States
39.1% 25.0% 11.8%
Nasdaq Stockholm (Large Cap)
Sweden
SE0015671995 / HEM
United Kingdom
Listing date Share classes
27 April 2021
Norway
2.0% 1.7% 2.5%
There are two classes of shares in the company: ordinary shares and seriesA1 shares. Both share classes have the same votinganddividend rights. Themaindifference is that seriesA1 shares have a veto right against alteration of the company’s objects in the articles of association. These shares are owned by Mäklarsamfundet. For complete information on the rights of the share classes, see the company's prospectus.
Singapore
Rest of world
Anonymous ownership
17.9%
OWNERSHIP, % OF CAPITAL 2)
Total registered shares:
101,131,478, of which 96,074,904 ordinary shares and 5,056,574 series A1 shares
Swedish institutional owners Foreign institutional owners
5.3%
56.6% 12.4%
Share price and market capitalisation as of 31 December 2021 Highest / lowest price 2021 Companies that perform analysis of Hemnet Group AB Consensus estimate
Others
Swedish private individuals Anonymous ownership
7.8%
SEK 167.3 / SEK 16.9 billion
17.9%
SEK 257.00 / SEK 142.35
Barclays, Carnegie, Citi, Jeffries, Morgan Stanley, Nordea
1) Based on an IPO price of SEK 115 per share 2) Source: Modular Finance. Data compiled fromEuroclear, Morningstar, Finansinspektionen, Nasdaq.
Available via Infront
THE HEMNET SHARE
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 17
SustainabilityReport
Our sustainability efforts are an integral part of our business As one of Sweden’s most visited digital platforms and a hub for the country’s residential property transactions, Hemnet plays an important role in the Swedish housing market. With this position comes responsibility, and we want to build a company that makes a positive impact both in the market where we operate and in society at large.
quality and availability of our platforms and services are maintained, since they play an important role for our users in their housing journey. Hemnet is a fair, trustworthy and independent marketplace where we protect the privacy of our visitors and customers. As a company driven by our products and innovation, our employees are our most important asset, and as an employer we should offer an inspiring and developing workplace based on clear ethical guidelines.
Our sustainability efforts are focusing on areas that are close to our business and our offering. We work daily to ensure that the
Hemnet’s sustainability efforts in 2021 During 2021, we developed how we work with sustainability and refined our sustainability reporting. For example, we have updated our company values and ethical framework as well as taken important steps within gender equality and diversity. We have also carried out our first greenhouse gas accounting for Hemnet.
During the year, we have conducted several stakeholder dialogues with our most important stakeholder groups in order to develop our sustainability framework. These dialogues provided insights into the previously performed materiality analysis and resulted in an updated sustainability framework with clear focus areas and performance indicators.
Sustainability framework and focus areas Hemnet’s sustainability framework consists of six focus areas that include areas where Hemnet’s business has the greatest impact. The framework is divided into two parts, where one part includes the focus areas that are an integral part of our business, and the other areas where we, through our brand and strong position, strive to be a positive force in society. In this report, we
follow up all focus areas with performance indicators inspired by, but not fully meeting all the requirements of, the Global Reporting Initiative (GRI). In 2022, we will take further steps within our sustainability efforts, including the ambition to complement the sustainability report with clear targets in our focus areas.
Being a fair marketplace with equal terms for equal transactions
Being one of Sweden’s best workplaces.
Principles of ethics and responsibility that are reflected in every part of our business
We strengthen our business through:
Enabling market efficiency
Creating social impact
Combating climate change
We strive to be a positive force in society through:
18 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
SUSTAINABILITY REPORT
Hemnet’s contribution to the UN Sustainable Development Goals (SDGs)
Along with the updated sustainability framework, we have identified three SDGs where we have the greatest impact through our operations and where we believe we have the best opportunity to contribute to achieving the SDGs.
As a digital and comprehensive marketplace, Hemnet enables faster and easier property transactions for all market participants. This creates a more efficient property market and contributes to sustainable economic growth.
Hemnet is to be an independent and transparent marketplace. Through our platform, we provide a high-quality and reliable digital infrastructure for the Swedish property market giving fair access for all market participants.
To tackle climate change and its effects, urgent action is needed by all. Hemnet wants to contribute to a well-functioning property market within the planetary boundaries. We do this by limiting our own greenhouse gas emissions and reviewing how we can help our customers make more sustainable housing choices.
SUSTAINABILITY REPORT
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 19
Howwe strengthen our core business through sustainability We see the following three areas of sustainability as the most important for running and developing our business:
An independent and transparent marketplace
Hemnet’s business model implies a responsibility to ensure that home buyers, sellers and estate agents alike have equal access to the part of the residential property market that Hemnet represents. Content on Hemnet must be accurate, credible and of high quality, with common ground rules for the estate agents who place property advertisements on the platform. Through our customer service function, we continuously follow up published listings on Hemnet that don’t comply with our publication rules through an email sent to the responsible real estate agent. The most common issues include incorrect information in the listing or that the listing has been categorised in the wrong property category. Repeated errors that are not corrected can lead to suspension from Hemnet’s platforms, but mistakes are almost always immediately corrected and suspension is an extreme measure that we rarely have had reason to use. We are to be a marketplace where our visitors and customers feel confident that we take their privacy seriously and that the use of their
personal data is transparent. We carry out structured and continuous data protection efforts, and respect for privacy is a natural part of our Code of Conduct. It is clear from Hemnet’s Policy for Information and Data that the use of personal data must comply with applicable laws and regulations and take the individual’s interest in personal privacy into account. The proportion of visitors who accept Hemnet’s processing of data in the parts where we ask for consent is high and during the year no complaints have been filed with the Swedish Authority for Privacy Protection, which should be seen in the light of the millions of people who visit Hemnet’s platforms every week. This indicates that the personal data processing that visitors agree to meets their expectations and that there is a high level of trust in Hemnet.
Being one of Sweden’s best workplaces
Diversity and inclusion We have taken important steps within gender equality, diversity and inclusion during the year, areas we see as prerequisites for innovation and creativity. Hemnet is actively working to recruit more women to developer roles where we have been particularly successful in the managerial ranks. Today we have more female than male development managers.To raise awareness of the need for more female developers, Hemnet has, for the third year running, supported the Women in Tech initiative and event, which aims to encourage more women to enter the industry. Our employees come frommany different backgrounds and today there are people from around fifteen different countries working at Hemnet. In 2021, for the first time, we hired someone living outside of Sweden, where we supported the new employee and family in the processes required for such a move. Our work on gender equality and diversity has also attracted attention outside the company, which we describe on page 15 of the Annual Report.
Our employees are our most important asset. For us, this means being one of Sweden’s best employers and a safe workplace where people thrive and develop. We will actively work to improve gender equality and diversity, and we will safeguard the health and work-life-balance of our employees. Hemnet as an employer Hemnet carries out weekly surveys in order to always be aware of how our employees feel and get on in their workplace. We also offer a range of health benefits, such as wellbeing allowances and various forms of exercise paid for by the company. For those who wish, we offer an external counselling service that includes psychologist, economist, lawyer, health coach or HR consultant counselling to help employees deal with any possible problems and issues in these areas. In 2022, our already advantageous employee benefits will be further enhanced by increasing the number of holiday days from 28 to 30. To ensure that we have competitive pension terms that are easy to compare with the rest of the labour market, we will also move into an ITP1 (collectively agreed pension) pension plan as of 1 of January 2022.
An open corporate culture and strong ethics
During the year, Hemnet launched new corporate values that more clearly reflect our corporate culture and our approach to the world around us and to each other. We have also continued our efforts to train employees in our ethical framework, which is closely intertwined with our culture and sum- marised in our Code of Conduct. Hemnet’s ethical grounds Hemnet’s business is run on the basis of principles of ethics and responsibility that permeate all aspects of our operations and are summarised in our Code of Conduct. The Code of Conduct sets out the company’s zero tolerance of bullying, harassment and intimidation, as well as zero tolerance of bribery and corruption. Violations of our ethical
guidelines are reported to the company’s managers, general counsel or HRmanager, or anonymously through our whistleblower function which is available through our website hemnetgroup.com and through our intranet. Demands on suppliers As Hemnet’s services are developed and built within the company, our purchases are limited. However, we expect the suppliers we work with to live up to the human rights, legal, ethical and moral demands that we as a company impose on ourselves. We manage these expectations through our Supplier Code of Conduct, which is part of our contracting process for negotiated agreements with suppliers.
20 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
SUSTAINABILITY REPORT
Performance indicators
2019 2 630 0
2020 2 019 0
2021 1 276 0
Compliance with publication rules Number of emails sent with a warning about violation of Hemnet’s publication rules. Number of suspensions fromHemnet’s platforms
Number of personal data incidents related to customer data reported to the Swedish Authority for Privacy Protection
0
0
0
Number of visits to Hemnet per month Average time spent on Hemnet per visitor Availability of Hemnet’s platforms during the year
54 million
62.5 million
61.4 million 5.19 minutes
5.13 minutes 5.16 minutes
99.97%
99.98%
99.94%
Performance indicators
2019
2020
2021
Results from ongoing employee surveys (index 1-100) Trust between colleagues: I am treated with fairness and respect: Leadership quality: Gender distribution (GRI 405-1) Share of women//men in management Share of women/men developers/technical staff Share of women/men all staff
75 75 72
83 76 74.8
82.9 74.2 73.8
33/67% 15/85% 36/65%
57/43% 14/86% 34/64%
57/43% 20/80% 40/60%
Number of new employees
30
30
23 (9women, 14men)
Number of job applicants (approximate)
2,500
2,300
3,400
Sick Leave (more than 14 days and includes rehabilitation from injuries and sick leave in relation to for example child births)
5
8
4
Staff turnover
23%
12.9%
16.9%
Performance indicators
2019
2020
2021
Number of incidents reported through Hemnet’s whistleblowing function Confirmed incidents of corruption and actions taken (GRI 205-3) Communication and training on anti-corruption policies and procedures (GRI 205-2) Share of employees informed about and trained in the company’s Code of Conduct Share of employees and consultants who have finalised a questionnaire about the content ´t of the company’s Code of Conduct
N/A N/A
N/A
0 0
0
N/A N/A
N/A N/A
100% 88%
SUSTAINABILITY REPORT
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 21
We strive to be a positive force in society In the following three sustainability areas, our impact ismore indirect. They are areas that are important to us andwherewe see that we can andwant to contribute to a positive development for society.
Enabling a mobile and efficient housing market
Hemnet has a central and important position in the housingmarket as Sweden’s largest housing platform. We make the greater part of the Swedish housingmarket accessible in one place, which, paired with our high traffic, provides an excellent environment for the various players on the market to find each other. Based on this position, we contribute to the economy by enabling a mobile and efficient housingmarket.
The content on Hemnet is characterized by high quality and in that way we also contribute to a transparent and mature housing market with good opportunities to compare objects. As a consumer, it is easy to get a snapshot of the housing market at Hemnet at any given time. This provides knowledge and creates a sense of security before selling or buying a home.
Creating social change
Action for those outside the housing market Without a home of your own, many other aspects of life, such as relationships and work, can fall apart. Homelessness is devastating for the individual and also leads to major cost to society. Despite this, over 30,000 people in Sweden today live without a home they can call their own, and a large part of them are found in Stockholm. As the country’s largest property portal, Hemnet plays an important role in helping people to effectively sell and find new homes. From our position, we also see that we have a responsibility to help prevent people from being completely excluded from the housing market. In 2019, Hemnet therefore started a collaboration with the Stockholm City Mission, where we chose to earmark our contribution to the area Bobyrån, which helps socially vulnerable people find a more permanent housing solution. The target group is people who are homeless, have a psychosocial problem and in need of some kind of support. The principle is that individuals in need are given the opportunity to have their own home without having to go through several steps along the way with, for
example, support housing. In 2021 Stockholm City Mission managed 133 apartments and enabled that 246 individuals received a long-term housing solution through Bobyrån, results that Hemnet has contributed to through our donation. In addition to a monetary contribution, we use Hemnet’s platforms to help Stockholm City Mission spread awareness of the homelessness issue and how they work. Efforts for a more gender-equal sector Hemnet also wants to promote gender equality in tech and has since 2019 annually contributed to the Women in Tech event as a supporting partner and exhibitor.
Combating climate change
Due to Hemnets digital business model, we have a small impact on the climate and the environment. However we will of course take our responsibility and do our part to contribute to a well-functioning property market within the planetary boundaries. We use cloud-based IT solutions and storage services to the greatest extent possible to limit our carbon footprint. Today, Hemnet has two main IT solution providers, both of whom have very solid sustainability efforts, not least when it comes to emissions and the environment. An important part of our climate work is to use renewable sources for our electricity consumption in the office and to our servers and to reduce energy consumption. For our offices, we have an additional service from our electricity supplier that involves electricity from 100% renewable sources (solar, water or wind). The building housing our office premises is also powered by renewable electricity. As Sweden’s largest marketplace for housing, we have ample opportunities to influence good environmental choices through our platform. During the year, we have addedmore opportunities to showcase
the energy rating and eco-labelling of newly completed residences on Hemnet and this is an area we will continue to develop and design. For 2021, we have for the first time calculated our greenhouse gas emissions based on the Greenhouse Gas Protocol accounting standards. Hemnet has no direct emissions that fall under scope 1. The majority of the emissions are indirect and found in scope 2 and 3. See table for a detailed account of which emission sources are included in the various scopes. By getting a clearer picture of our carbon footprint, we have laid the groundwork for setting clearer targets for reducing and managing our greenhouse gas emissions going forward.
22 · HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021
SUSTAINABILITY REPORT
Performance indicators
2019
2020
2021
Average selling time of homes listed on Hemnet*
27 days 185,031
23 days 189,305
20 days 198,360
Number of listed homes on Hemnet**
* Including new construction, median number of days. ** Dwellings published for the first time. New construction properties included.
Performance indicators
2019
2020
2021
Direct economic value generated and distributed (GRI 201-1) Contribution to Stockholm City Mission Sponsoring Women In Tech
SEK 300,000 SEK 75,000
SEK 300,000 SEK 75,000
SEK 300,000 SEK 75,000
Performance indicators
Hemnet’s carbon dioxide emissions, tonnes CO 2 e GRI 305-1 - 3
2019
2020
2021
Scope 1 Hemnet currently has no company cars
N/A
N/A
N/A
Scope 2 Electricity
N/A N/A N/A N/A N/A N/A N/A
0 3 0
0 3 0
District heating District cooling
Scope 3 Business travel * Employee commuting Customers’ use of Hemnet´s services
2 7 123 135
2 7 122 134
Total scope 1-3
* Includes flights, hotel nights, rental cars, train and taxi travel.
SUSTAINABILITY REPORT
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021 · 23
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