Hypoport Se · XETR:HYQ
Hypoport — FY2021 Earnings Presentation
53 slides from Hypoport's earnings presentation, Mar 14, 2022
Slide 1: Hypoport SE Preliminary results for 2021
Hypoport SE Preliminary results for 2021
Slide 2: Our mission
Our mission Digitalisation of the credit, real-estate and insurance industries Credit industry Real-estate industry Insurance industry Hypoport SE, preliminary results 2021 2
Slide 3: Hypoport – a network of technology companies
Hypoport – a network of technology companies Revenue in 2021 by segment STAR- BAUFI POOL QUALITY NEX POOL GENO PACE Insurance industry Credit industry FINMAS €48 SMART INSURTECH €207 million EUROPACE million ePension funding- REM port CAPITAL VALUE AG FIO DR. KLEIN PRIVATE CLIENTS Private clients DR
Slide 4: Hypoport – clearly ahead of the market
Hypoport – clearly ahead of the market Results for FY 2021 Key figures for 2021 (yoy change) • Revenue: €446 million (+15%) • Gross profit: €249 million (+19%) • EBIT: €47 million (+32%) incl.an outperformance of €4-5 million in corporate finance • EPS: €4.79 (+11%) Hypoport and market volume (yoy c
Slide 5: Contents
Contents 1. Market environment in 2021 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook for 2022 Annex (incl. share price info & IR)
Slide 6: Neither interest rates nor short-term political topics are relevant
Neither interest rates nor short-term political topics are relevant Factors influencing demand in the German housing market Factors Effects Outcome EU integration Net inward migration Economic stability Life Number of expectancy households Number of one- Demand for person households housing Lockdown
Slide 7: Scarce supply due to low sales volumes and limited new construction
Scarce supply due to low sales volumes and limited new construction Factors influencing supply in the German housing market Factors Effects Outcome Life expectancy Transaction Sale of costs existing properties Alternative investment Supply of options housing Regulation New builds Limited resources (
Slide 8: Funding market is stable and growing modestly
Funding market is stable and growing modestly Factors influencing the volume of mortgage finance Lead time Buyer's Demand for Regulation of the for equity housing rental market property sales deposit Rent Excess demand Volume of property Mortgage (approx. 2 million homes) transactions finance volume
Slide 9: Short-term trends in 2021
Short-term trends in 2021 Important changes in key markets Factors Effects • Limited net inward migration to Germany in 2020/2021 due to the coronavirus pandemic offset by an immediate Limited increase in demand in connection with lockdowns and working from home; a lack of alternative investment net
Slide 10: Contents
Contents 1. Market environment in 2021 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook for 2022 Annex (incl. share price info & IR)
Slide 11: Credit Platform
Credit Platform Business model & results STAR BAUFI POOL QUALITY NEX POOL GENO PACE Credit industry FINMAS EUROPACE FUNDING- REM PORT CAPITAL Hypoport SE, preliminary results 2021 11
Slide 12: Digitalisation of the credit industry
Digitalisation of the credit industry Credit Platform segment business model Consumers / Distributors Poolers B2B Product suppliers companies lending marketplace Online comparison Private sites commercial banks Other advisors EUROPACE Insurance Dr. companies Klein Quality- pool Star- pool Baufi- Sav
Slide 13: Mortgage finance volume at almost €100 billion
Mortgage finance volume at almost €100 billion Credit Platform: mortgage finance and building finance segment • Further significant gains in market share for mortgage finance Volume of transactions (€ billion)* (+14% compared with +5% overall market growth) 5-year CAGR: +18% +14% • Building finance
Slide 14: Europace has huge potential for growth
Europace has huge potential for growth Mortgage finance in Germany (€ billion) and Europace's share Distribution channels and Europace's share* GENOPACE (for cooperative banks)* 5-year CAGR: +64% +57% Cooperative Brokers banks 12 12.3 ~25–30% ~25–30% 8 7.8 1 1 2 4 ~55% ~15% 2016 2017 2018 2019 2020
Slide 15: Robust growth despite challenging market conditions
Robust growth despite challenging market conditions Credit Platform: Personal loans segment • Since 2016, Europace has gained significant market share in Transaction volume in personal loans (€ billion)* the personal loans segment thanks to a clear B2B focus 5-year CAGR: +12% +17% • This expansion w
Slide 16: Digitalisation of the credit industry
Digitalisation of the credit industry Credit Platform segment business model (corporate finance business) Consumers / Distributors Poolers B2B Product suppliers companies lending marketplace Online comparison Private sites commercial banks Other advisors EUROPACE Insurance Dr. companies Klein Qualit
Slide 17: Extremely strong year for REM Capital
Extremely strong year for REM Capital Credit Platform: Corporate finance business • The corporate finance business within the Credit Platform Number of completed corporate finance projects segment comprises the activities of REM Capital and fundingport • REM Capital was acquired in 2019 in order to
Slide 18: Profitable growth thanks to innovation leadership
Profitable growth thanks to innovation leadership Credit Platform: revenue, gross profit and earnings Revenue (€ million) +22% • Segment revenue exceeded €200 million for the first time 207.3 ever 169.5 • Huge boost for corporate finance from changes in KfW funding 2020 2021 • Revenue from the white
Slide 19: Private clients
Private clients Business model & results DR. KLEIN Private clients VER- GLEICH .DE Private clients Hypoport SE, preliminary results 2021 19
Slide 20: Brokers of mortgage finance products
Brokers of mortgage finance products Private Clients segment business model Consumers Lead generation via… Advisors Access via… Product suppliers Private commercial Google banks Insurance Dr. Klein companies Vergleich.de EUROPACE franchise system FINMAS Savings banks DrKlein.de GENOPACE Cooperative
Slide 21: Healthy volume of sales for Dr. Klein Privatkunden
Healthy volume of sales for Dr. Klein Privatkunden Private Clients: volume of loans brokered and number of advisors Volume of new loans brokered to private clients • Volume of new loans brokered up by 9% on the already (€ billion)* 5-year CAGR: +18% +9% strong performance in 2020, the first year of
Slide 22: Record figures in 2021
Record figures in 2021 Private Clients: revenue, gross profit and earnings +10% • Record levels of revenue thanks to further gains in Revenue (€ million) market share 122.2 134.9 • Capital expenditure carried out in 2018/2019 to integrate regional product partners and achieve greater 2020 2021 effic
Slide 23: Real Estate Platform
Real Estate Platform Business model & results EUROPACE VALUE AG FIO DR. KLEIN WOWI PRoM MiSe Real-estate industry Hypoport SE, preliminary results 2021 23
Slide 24: Digitalisation of the real-estate industry
Digitalisation of the real-estate industry German real-estate industry market Number of residential units in Germany: 42.8 million Owner-occupiers Private (small-scale) landlords Institutional housing sector Market share in approx. 21 million approx. 16 million approx. 6 million residential units Pr
Slide 25: Strong cross-selling potential
Strong cross-selling potential Market share for the marketing, financing and valuation of residential property Property purchases Mortgage finance Property valuation Notaries & PropertyBrokers Sellers sales Buyers Property Advisors Marketplace Banks Appraisers land register approx. €238 billion fina
Slide 26: Better scalability and less project business
Better scalability and less project business Real Estate Platform: property sales platform and property management platform • Development of software solutions for the sale and Marketing through FIO Number of clients Volume (€ billion) management of residential properties in the credit and +3% +13%
Slide 27: Successful year of growth for VALUE AG
Successful year of growth for VALUE AG Real Estate Platform: property valuation platform • The business model consists of integrated property VALUE AG valuations for the lending banks and the real-estate Number of clients Valuation volume (€ billion) industry +21% +21% • High level of capital expend
Slide 28: Positive interest-rate volatility in a muted environment
Positive interest-rate volatility in a muted environment Real Estate Platform: property financing platform Volume of new loans brokered on the property • The business model is based on loan and insurance financing platform 17% brokerage, mainly for the municipal and cooperative (€ billion) 2.1 housi
Slide 29: Growth segment with high capital expenditure for the future
Growth segment with high capital expenditure for the future Real Estate Platform: revenue, gross profit and earnings +9% • Healthy operating performance of all four platforms Revenue (€ million) (property sales, valuation, financing and management) 52.8 57.7 • The strategic reduction in individual p
Slide 30: Insurance platform
Insurance platform Business model & results QUALITY POOL Insurance industry SMART INSURTECH ePEN- SION Hypoport SE, preliminary results 2021 30
Slide 31: Potential for digitalisation in the insurance market
Potential for digitalisation in the insurance market Market factors Negative factors Positive factors • Established market players' legacy • Consumers have higher expectations systems are slowing the pace of regarding digitalisation digitalisation due to the lack of • Insurtech start-ups and coronav
Slide 32: Digitalisation of the insurance industry
Digitalisation of the insurance industry Insurance Platform segment business model End customers/ employees & Distributors Poolers B2B Product suppliers employers insurance platform Insur apps Insur apps Advisors in bank branches Dr. Other Klein brokers Quality-/ SMART Insurance DR. KLEIN Amex- SMAR
Slide 33: Significant potential for growth remaining in all segments
Significant potential for growth remaining in all segments Market share in three insurance segments Overall market in 2021: €223 billion in annual net premiums written ~ 173 165.3 ~ 30 19.5 8.6 2.1 27.9 0.1 19.4 Private Insurance Industry Insurance Occupational pension schemes With Hypoport system W
Slide 34: Steady increase in the platform volume in 2021
Steady increase in the platform volume in 2021 Insurance Platform: migrated SMART INSUR portfolios • Annual net premiums of approx. €8.6 billion are managed Annual net policy premiums on private insurance portfolios (legacy system / SMART INSUR platform) in the legacy systems of the acquired compani
Slide 35: Validation of industrial insurance portfolios initiated
Validation of industrial insurance portfolios initiated Insurance Platform: industrial insurance portfolios • As a result of acquisitions of several software providers in Annual net policy premiums on industrial insurance portfolios (€ billion) the period from 2016 to 2019, Hypoport also took over b
Slide 36: Breaking into the growth market of occupational pension provision
Breaking into the growth market of occupational pension provision Insurance Platform: occupational pension portfolios • Part of the Hypoport network since 2020 Annual net policy premiums on occupational pension portfolios (€ billion) • ePension offers an innovative platform for the integration of va
Slide 37: Focus on recurring revenue
Focus on recurring revenue Insurance Platform: revenue, gross profit and earnings +7% • Additional clients have been signed up for SMART INSUR in Revenue (€ million) 2021, but – so far – acquisition of new clients has been 45.0 48.1 progressing more slowly than expected due to the pandemic 2020 2021
Slide 38: Contents
Contents 1. Market environment in 2021 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook for 2022 Annex (incl. share price info & IR)
Slide 39: Stronger growth than in good prior-year period
Stronger growth than in good prior-year period Overview of Hypoport's key performance indicators Growth (€ million) Earnings (€ million) 446.3 387.7 77.1 Revenue 63.8 +15% EBITDA +21% EBIT 47.7 36.2 +32% Gross profit 249.5 210.5 EAT +19% 30.6 27.9 +10% 2020 2021 2020 2021 Hypoport SE, preliminary re
Slide 40: 22-year track record as a profitable growth company
22-year track record as a profitable growth company Long-term changes in revenue and EBITDA Established Upscaling and Start-up despite fin. crisis expansion Revenue (€ million) 446 388 4 26 98 1999 2006 2013 2020 2021 EBITDA (€ million) 77 64 2 7 8 1999 2006 2013 2020 2021 Hypoport SE, preliminary r
Slide 41: Targeted investment in further growth
Targeted investment in further growth Areas of capital expenditure with an impact on earnings in 2021 Credit Platform Real Estate Platform a. Development resources for the a. Headcount expansion in property next generation of Europace valuation b. Establishment of the b. Expansion of platforms for p
Slide 42: Contents
Contents 1. Market environment in 2021 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook for 2022 Annex (incl. share price info & IR)
Slide 43: External conditions broadly stable in 2022
External conditions broadly stable in 2022 Anticipated market trends in 2022 Factors Effects • Net inward migration to Germany limited in 2020/2021 due to the coronavirus pandemic but likely Net inward to pick up again on the back of robust labour market conditions and falling infection rates as wel
Slide 44: Hypoport steps up its pace of innovation
Hypoport steps up its pace of innovation Key innovations of Hypoport in 2022 Factors Effects EUROPACE • Innovative pilot project that was launched in January 2022 and aims to revolutionise lending; one-click Growing need of consumers for quicker credit approval in mortgage finance is addressed at an
Slide 45: For years Forecast for 2022 For many more years
For years Forecast for 2022 For many more years Hypoport has been Hypoport expects to generate generating double-digit consolidated revenue of Hypoport will generate increases in revenue €500–540 million and double-digit increases in and EBIT EBIT of €51–58 million in 2022 revenue and EBIT Hypoport
Slide 46: Contact
Contact Jan H. Pahl Hypoport SE Head of Investor Relations Heidestrasse 8 Tel: +49 (0)30 420 86 1942 10557 Berlin Email: ir(at)hypoport.de Germany Click here to subscribe to the IR mailing list Hypoport SE, preliminary results 2021 46
Slide 47: Disclaimer
Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice and perform their own analysis regarding the appropriateness of investing in any of our securities. While Hyp
Slide 48: Annex
Annex Hypoport SE, preliminary results 2021 48
Slide 49: Investment highlights
Investment highlights ~25% 1.5 REVENUE GROWTH MODERATE DEBT LEVEL 5-year CAGR Liabilities to banks / 12M EBITDA ~15% 20+ EBIT INCREASE YEARS 5-year CAGR of experience with platform- based business models 15+ 93% ACQUISITIONS OUR EMPLOYEES in 7 years are satisfied or even extremely satisfied with Hyp
Slide 50: Market capitalisation of approx. €3 billion
Market capitalisation of approx. €3 billion Shareholder structure and share information Breakdown of shareholders as at 28 February 2022 Key performance indicators KPI Details Value Ronald Slabke (CEO) Treasury shares EPS Earnings per share in 2021 €4.79 Free float (of which more than 4% held by Ame
Slide 51: Share price rises sharply
Share price rises sharply Share price since the date of joining the SDAX (daily closing price, Xetra, €) € HYQ SDAX MDAX % 650 820 620 784 590 748 560 712 530 676 500 640 470 604 440 568 410 532 380 496 350 460 320 424 388 290 352 260 316 230 280 200 244 170 208 140 172 110 136 80 100 50 64 Dec Apr
Slide 52: Hypoport's investor relations activity
Hypoport's investor relations activity Investor events, professional analysts' assessments, awards Recommenda Target Recent IR events Analyst Date tion price Amsterdam, Berlin, Frankfurt (3x), Lyon, Conferences Bankhaus Metzler Sell €320.00 28 Feb. 2022 Hamburg, London, Munich (2x), Paris, 2021 (dig
Slide 53: Mortgage finance – a high-potential market
Mortgage finance – a high-potential market Factors influencing the private and institutional residential mortgage finance markets Negative factors Positive factors Finance for • Lack of available properties • Strong pent-up demand in and from the rental market OWNER- • High ancillary purchasing cost