Hemnet Group ENG

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

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