Hypoport Se · XETR:HYQ
Hypoport — Q3 2021 Earnings Presentation
48 slides from Hypoport's earnings presentation, Nov 8, 2021
Slide 1: Hypoport SE Results for Q1–Q3 2021
Hypoport SE Results for Q1–Q3 2021
Slide 2: Mission: Digitising the credit, real estate & insurance industries
Mission Digitising the credit, real estate & insurance industries Credit Industry Real Estate Industry Insurance Industry Hypoport SE, results for Q1–Q3 2021 2
Slide 3: Hypoport – a network of technology companies
Hypoport – a network of technology companies Revenue Q1–Q3 2021 by segment STAR- BAUFI POOL QUALITY NEX POOL GENO PACE Insurance industry Credit industry FINMAS €36 SMART INSURTECH €147 million EUROPACE million ePension funding- REM port CAPITAL VALUE AG FIO DR. KLEIN PRIVATE CLIENTS Private clients
Slide 4: Hypoport – clearly ahead of the market
Hypoport – clearly ahead of the market Results for Q1–Q3 2021 and forecast for 2021 Key figures for Q1–Q3 2021 (yoy) • Revenue: €325 million (+14%) • Gross profit: €175 million (+17%) • EBIT: €33 million (+38%) • EPS: €4.01 (+43%) Hypoport and market volume (yoy change in euros) • Credit Platform re
Slide 5: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 6: Long-term trends not affected by coronavirus
Long-term trends not affected by coronavirus Factors influencing the German housing market Factors Effects Outcome Net inward migration Excess New Life Property demand mortgage expectancy prices (~2 million homes) finance business One-person households Use of Households' Rentals equity need for spac
Slide 7: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 8: 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, results for Q1–Q3 2021 8
Slide 9: 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 Savings Ba
Slide 10: Europace continues to gain market share
Europace continues to gain market share Credit Platform: Europace transaction volume • Record for Q1–Q3: further sharp rise in the transaction volume Volume of transactions (€ billion)** +16% per sales day* to more than €402 million (+17% yoy) CAGR: +19% 76.3 • Continued significant gains in market
Slide 11: 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)* CAGR: +66% +71% Cooperative 9.1 Brokers banks ~25–30% 7.8 5.3 ~25–30% 4.3 ~55% ~15% 1.0 1.2 1.6 2016 2017 2018 2019 2020 9
Slide 12: Profitable growth thanks to innovation leadership
Profitable growth thanks to innovation leadership Credit Platform: revenue, gross profit and earnings Revenue (€ million) +22% • All four distribution channels (brokers, private commercial banks, 147.1 cooperative institutions, savings banks) are growing on Europace 120.9 at a much faster rate than
Slide 13: Private Clients
Private Clients Business model & results DR. KLEIN PRIVATE CLIENTS VER- GLEICH .DE Private clients Hypoport SE, results for Q1–Q3 2021 13
Slide 14: Financial product brokers
Financial product brokers 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 banks Hypop
Slide 15: 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 (€ billion)* • 9% increase in volume of new loans brokered despite CAGR: +19% +9% strong performance in Q1–Q3 2020 • Further expansion of market share (ove
Slide 16: Record results in the first nine months
Record results in the first nine months Private Clients: revenue, gross profit and earnings +8% • Revenue for Q1–Q3 exceeded €100 million for first time Revenue (€ million) • Capital expenditure carried out in 2019 to integrate 93.4 101.1 regional product partners and increase efficiency (e.g. digit
Slide 17: Real Estate Platform
Real Estate Platform Business model & results EUROPACE VALUE AG FIO DR. KLEIN WOWI PROM MISE Real-estate industry Hypoport SE, results for Q1–Q3 2021 17
Slide 18: Digitalisation of the real-estate industry
Digitalisation of the real-estate industry Real Estate Platform segment business model Home ownership Rental (via credit industry) (via housing industry) Property sales Property financing platform platform Property valuation Property platform management platform Hypoport SE, results for Q1–Q3 2021 1
Slide 19: The €800 billion housing market is going digital
The €800 billion housing market is going digital Market participants, structure and market share Property purchases Mortgage finance Property valuation Notaries & Sellers Brokers Buyers Advisors Marketplace Banks Appraisers land register Market participants • Highly fragmented • Complex and fragment
Slide 20: Better scalability and less project business
Better scalability and less project business Real Estate Platform: property sales platform and property management platform Market share of FIO Vermarktung • Development of software solutions for the sale and Savings banks Cooperative banks management of residential properties in the housing and 11%
Slide 21: Successful year of growth for VALUE AG
Successful year of growth for VALUE AG Real Estate Platform: property valuation platform Potential synergies of Europace partners for VALUE • The business model consists of integrated property valuations AG 758 795 for the lending banks, i.e. for Europace product partners Europace • Cross-selling po
Slide 22: 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 consists of loan brokerage for the financing platform 21% housing industry (€ billion) • Despite uncertain conditions caused by
Slide 23: Growth segment with high capital expenditure
Growth segment with high capital expenditure Real Estate Platform: revenue, gross profit and earnings +10% • Healthy operating performance of all four platforms Revenue (€ million) (property sales, valuation, financing and management) 38.9 42.7 • The strategic reduction in individual project busines
Slide 24: Insurance Platform
Insurance Platform Business model & results QUALITY POOL Insurance industry SMART INSURTECH ePEN- SION Hypoport SE, results for Q1–Q3 2021 24
Slide 25: 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 26: Digitalisation of the insurance industry
Digitalisation of the insurance industry Insurance Platform segment business model End customer/ Distributors Poolers B2B Product suppliers companies insurance platform Insur apps Insur apps Advisors in bank branches Other Dr. brokers Klein Dr. Klein Quality-/ SMART INSUR Amex- SMART INSUR Insurance
Slide 27: Steady increase in the platform volume in 2021
Steady increase in the platform volume in 2021 Insurance Platform: migrated portfolios • Annual net premiums of approx. €8.6 billion are managed in the Annual net policy premiums on the platform (€ billion) legacy systems of the companies acquired between 2016 and 2019 (annual gross premiums of appr
Slide 28: Focus on recurring revenue
Focus on recurring revenue Insurance Platform: revenue, gross profit and earnings +8% • Large broker organisations and broker pools are the Revenue (€ million) primary target groups; insurtechs and banks are also 32.9 35.6 important client groups • Additional clients have been signed up for the plat
Slide 29: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 30: 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) 55.1 325.3 284.8 43.8 Revenue EBITDA +14% +26% 33.4 EBIT +38% 24.2 Gross profit 175.5 149.7 EAT 25.4 +17% 17.7 +43% 9M 2020 9M 2021 9M 2020 9M 2021 Hypoport SE, re
Slide 31: 22 years as a growth company
22 years as a growth company Long-term changes in revenue and EBITDA Established Start-up Upscaling and expansion despite fin. crisis Revenue (€ million) 388 325 4 26 98 1999 2006 2013 2020 9M 2021 EBITDA (€ million) 64 55 2 7 8 1999 2006 2013 2020 9M 2021 Hypoport SE, results for Q1–Q3 2021 31
Slide 32: Targeted investment in further growth
Targeted investment in further growth Areas of capital expenditure with an impact on earnings in 2020 Credit Platform (level of investment: €€€) Private Clients (level of investment: €) • Increase in key account resources for regional banks • Investment in the digitalisation of the advisory (FINMAS
Slide 33: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 34: Market capitalisation of more than €3 billion
Market capitalisation of more than €3 billion Shareholder structure and share information Breakdown of shareholders as at 31 October 2021 Key performance indicators KPI Details Value Ronald Slabke (CEO) Treasury shares Earnings per share in Q1–Q3 EPS €4.01 Free float 2021 (of which more than 4% held
Slide 35: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 36: Investment highlights
Investment highlights ~25% 1.6 REVENUE GROWTH MODERATE DEBT LEVEL CAGR 5 years Liabilities to banks / 12M EBITDA ~15% 20+ EBIT INCREASE YEARS CAGR 5 years of experience with platform- based business models 10+ 78% ACQUISITIONS OUR EMPLOYEES in 5 years are satisfied or even extremely satisfied with H
Slide 37: For years, Forecast for 2021, For many more years
For years Forecast for 2021 For many more years Hypoport has been Hypoport anticipates generating double-digit consolidated revenue of Hypoport will generate increases in revenue between €430 million and double-digit increases and EBIT €460 million and EBIT of €40 million to €45 million in in revenu
Slide 38: Contact
Contact Jan H. Pahl Hypoport SE Investor Relations Manager / IRO 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 (English) Hypoport SE, results for Q1–Q3 2021 38
Slide 39: 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 40: Annex
Annex Hypoport SE, results for Q1–Q3 2021 40
Slide 41: Share price rises sharply
Share price rises sharply Share price since the date of joining the SDAX (daily closing price, Xetra, €) HYQ SDAX 650 78.000 620 75.000 590 72.000 69.000 560 66.000 530 63.000 500 60.000 470 57.000 440 54.000 51.000 410 48.000 380 45.000 350 42.000 320 39.000 290 36.000 33.000 260 30.000 230 27.000
Slide 42: Hypoport's investor relations activity
Hypoport's investor relations activity Investor events, professional analysts' assessments, awards Recommen- Target Recent IR events Analyst Date dation price Conferences (dig.) Frankfurt, Munich (2x) Q3 2021 Bankhaus Metzler Sell €420.00 27 Oct 2021 Roadshow (dig.) London Q3 2021 Berenberg Buy €600
Slide 43: 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
Slide 44: Significant gains in market share during corona crisis
Significant gains in market share during corona crisis Review of Credit Platform and Private Clients during the coronavirus crisis Market Target Lockdown 1 After lockdown 1 Lockdown 2 // 3rd wave Long term Segments environment group (Mar–May 2020) (Jun–Sep 2020) (Oct 2020–Mar 2021) (after coronaviru
Slide 45: Significant gains in market share during corona crisis
Significant gains in market share during corona crisis Impact of the coronavirus crisis on Credit Platform and Private Clients Market Target Lockdown 2 // 2nd & 3rd wave After lockdown 2 Long term Segments environment group (Oct 2020–Mar 2021) (April 2021–today) (after coronavirus) Credit Mortgage C
Slide 46: Short-term effects minimal, long-term trends intact
Short-term effects minimal, long-term trends intact Review of Real Estate Platform and Insurance Platform during the coronavirus crisis Market Lockdown 1 After lockdown 1 Lockdown 2 // 3rd wave Long term Segments Target group environment (Mar–May 2020) (Jun–Sep 2020) (Oct 2020–Mar 2021) (after coron
Slide 47: Short-term effects minimal, long-term trends intact
Short-term effects minimal, long-term trends intact Impact of the coronavirus crisis on Real Estate Platform and Insurance Platform Market Lockdown 2 // 2nd & 3rd wave After lockdown 2 Long term Segments Target group environment (Oct 2020–Mar 2021) (April 2021–today) (after coronavirus) Real Estate
Slide 48: Strong cross-selling potential
Strong cross-selling potential Market share for the marketing, financing and valuation of residential property Property sales Property financing Property valuation approx. €178 billion €215 billion approx. €255 billion 12,7 22,7 (7%) (9%) 63,4 (29%) Overall market in Q1–Q3 2021: approx. €178 billion