The document discusses how the real estate industry can learn from the media industry's transition to digital. It notes that Axel Springer transformed from a print publisher with 0.2% digital revenue in 2004 to a digital media company with 80% digital revenue in 2017 by pursuing an ecosystem approach. This involved investing over €4 billion through both organic growth and acquisitions to develop over 100 digital companies across different business models like news media, classifieds, and marketing. The document argues the real estate industry needs a similar transition and unbundling of business models to develop specialized PropTech companies that can be scaled individually.

1. Unbundling PropTech
Was Real Estate von den Medien lernen kann
Digital Meets Real Estate, 29.03.19, Berlin
Martin Spindler, Senior Strategist, Axel Springer hy GmbH

2. ABOUT hy
Ecosystem based innovation
and transformation services
FOUNDED
2017 (precursor founded in 2013)
OFFICES
Berlin, Tel Aviv, Silicon Valley
and outreach capabilities in China
CUSTOMERS
>60 projects with >40 customers (DAX30, MDAX, Family
owned) from >20 industries
TEAM
40+ and growing fast
CEO
Christoph Keese
SHAREHOLDERS
Axel Springer 60%, Team 35%, others 5%
STRATEGIC PARTNER
Egon Zehnder

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▪ Print publisher
▪ Leading in Germany
▪ Centrally managed
▪ 0.2% digital share of EBITDA (2004)
▪ Market cap: €2.9bn (12/2004)
▪ Digital publisher
▪ Leading in Europe
▪ Ecosystem of entrepreneurs
▪ 80% digital share of EBITDA
▪ Market cap: €7.2bn (12/2017)
10 years

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*EBITDA of operating segments; from 2012 continuing operations (excluding activities sold to FUNKE Group in 2014)
2006 2017
EBITDA 2006 - 2017 in m€* DIGITAL SHARE OF EBITDA in %
KPI OF DIGITAL CLASSIFIEDS
Global market position
of revenue from market leaders
of EBITDA growth post-acquisition
EBITDA margin
organic growth
#1
>80%
>50%
>40%
>10%
80%0.2%

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Source: Bloomberg, current through 11/18
Market Cap DAX 10 and PLATFORM 10
(% of total)

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Journalism
Classifieds
Advertising

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News Media
Classifieds Media
Marketing
Media

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Organic
By acquisition
Axel Springer has invested more than €4bn in digital business models, acquiring majority
shares in more than 100 companies and developed more than 120 firms and brands
internally. Share of digital EBITDA has grown to 72% in 2016 from ~0 in 2006.
2007 2008 20102009 2011 201320122006 2014 2015

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«We conservatively estimate that ~$1 trillion of residential
property value is going to shift across 13 major US cities due to
autonomous vehicles.»
— Phil Levin, 99mph
«I still think autonomous cars will create more billionaires in real estate
and retail than in tech or manufacturing. Just as cars did.»
— Benedict Evans, Andreessen-Horowitz
Los Angeles
New York
San Francisco
Washington
Atlanta
Chicago
Miami
Boston
Denver
Seattle
San Diego
Phoenix
Minneapolis $6b
$8b
$16b
$16b
$21b
$37b
$41b
$47b
$53b
$88b
$167b
$189b
$277b
~$1 trillion of value will shift across 13 cities
($ shift of residential property by Metro Area due to AVs)
Sources: 99mph, Andreessen Horowitz

13. | Unbundling Proptech - Was Real Estate von Medien lernen kann13
Lemonade Residential Insurance $120m
Mapbox Mapping $164m
OYO Hospitality $440m*
Compass Real estate brokerage platform $450m
Katerra
End-to-end digital/prefab
construction
$865m
Ola Mobility services $1.6b*
Grab Mobility Services $3b*
WeWork
Co-working, co-living,
Space as a Service
$4.9b
UBER Mobility services $10.1b
Didi Chuxing Mobility services $14b
*total volume of investment rounds with SoftBank participation

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ENERGY
INFRASTRUCTURE
ECOSYSTEM+ +
+
+
1.2 bncars worldwide (in 2014)

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News Media
Classifieds Media
Marketing
Media

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What’s the outside pressure that keeps your
product together?
What business models are inherent in your
product?
How can you scale those business models
horizontally?