Hypoport Se · XETR:HYQ
Hypoport — Q1 2023 Earnings Presentation
53 slides from Hypoport's earnings presentation, May 8, 2023
Slide 1: Hypoport SE Results for Q1 2023
Hypoport SE Results for Q1 2023
Slide 2: Mission: Digitalising the credit, real estate & insurance industries
Mission Digitalising the credit, real estate & insurance industries Credit industry Real Estate industry Insurance industry Hypoport SE, Q1 results 2023 2
Slide 3: Hypoport – a network of technology companies
Hypoport – a network of technology companies Revenue in Q1 2023 by segment STAR- BAUFI POOL QUALITY NEX POOL GENO PACE Insurance industry Credit industry FINMAS €17 mn SMART INSURTECH €38 mn EUROPACE ePension funding- REM port CAPITAL VALUE AG FIO DR. KLEIN PRIVATE CLIENTS Private clients DR. KLEIN
Slide 4: Strong growth, even in a weak market environment
Strong growth, even in a weak market environment Results for Q1 2023 Key figures for Q1 2023 compared with Q4 2022 (qoq) • Revenue: €94 million (+7%) • Gross profit: €52 million (-4%) • EBITDA: €9.4 million (Q4 2022: €6.4 million, adjusted for one-off items amounting to minus €4 million in Q4 2022)
Slide 5: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price info & IR)
Slide 6: Current market volume well below trend range
Current market volume well below trend range Volume of private mortgage finance in Germany • Very high inflation • Significantly higher long-term interest rates 85 • Only a small dip in property prices Overall market • Uncertainty (energy prices, recession) 75 Freedom of movement Market growth drive
Slide 7: No alternative to property acquisition in the future
No alternative to property acquisition in the future Macroeconomic factors affecting mortgage finance 5 140 Interest (debit interest rate, ten-year fixed, best rate) 135 Property prices (hedonic, indexed) 4 130 3 125 120 2 115 110 1 105 0 100 180 140 Properties offered for sale (number, indexed) Off
Slide 8: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price info & IR)
Slide 9: 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, Q1 results 2023 9
Slide 10: 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 11: Positive performance in a weak market environment
Positive performance in a weak market environment Credit Platform: mortgage finance and building finance product type • Further market share gained in a deteriorating market Volume of transactions (€ billion)* environment (Bundesbank: -5% qoq; trailing) 5-year CAGR: +15% +7% • Slight fall in the vol
Slide 12: Europace still has huge potential for growth
Europace still has huge potential for growth Mortgage finance product type: market share, by distribution channel Distribution channels and Europace’s share GENOPACE (for cooperative banks)* 5-year CAGR: +60% Cooperative +22% Brokers banks 12 13 ~25–30% ~25–30% 8 2.1 2.5 1 2 4 ~60% ~20% 2017 2018 20
Slide 13: Robust growth in a stagnating market environment
Robust growth in a stagnating market environment Credit Platform: personal loans product type • Over the past five years, Europace has gained significant market Transaction volume in personal loans (€ billion)* share in the personal loans business as a B2B marketplace 5-year CAGR: +15% +29% • The ex
Slide 14: Solid start to the year for subsidy consulting
Solid start to the year for subsidy consulting Credit Platform: corporate finance product type • From mid-2021 to mid-2022 exceptionally strong growth at Volume of new projects at REM Capital (€ billion) REM Capital due to attractive KfW funding schemes for energy-efficient properties, follow-on sch
Slide 15: Encouraging start to the year
Encouraging start to the year Credit Platform: revenue, gross profit and EBIT Revenue (€ million) -1% • Slight drop in revenue compared with very strong Q4 result, which was boosted by year-end commissions 38.3 37.7 • Profitability still below the five-year average of 40–45% (EBIT relative to gross
Slide 16: Private Clients
Private Clients Business model & results DR. KLEIN PRIVATE CLIENTS VER- GLEICH .DE Private Clients Hypoport SE, Q1 results 2023 16
Slide 17: Strong brand for independent advice
Strong brand for independent advice 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 b
Slide 18: Further gains in market share in a weak market
Further gains in market share in a weak market Private Clients: operational key figures Volume of new loans brokered to private clients • Further expansion of market share (overall market: -5%, (€ billion)* 5-year CAGR: +13% +10% trailing) and 10% increase in the volume of new loans brokered 9.2 9.9
Slide 19: Dr. Klein bounces back in 2023 after weak Q4 2022
Dr. Klein bounces back in 2023 after weak Q4 2022 Private Clients: revenue, gross profit and EBIT • Disproportionately strong increase in revenue as a result of Revenue (€ million) +26% earnings coming through that had been expected in Q4 2022 but were delayed due to long processing times of loan 23
Slide 20: Real Estate Platform
Real Estate Platform Business model & results EUROPACE VALUE AG FIO DR. KLEIN WOWI PRoM MiSe Real-estate industry Hypoport SE, Q1 results 2023 20
Slide 21: Potential in the digitalisation of the housing industry
Potential in the digitalisation of the housing industry Market segments and solutions Owner- Private (small-scale) Institutional occupiers landlords housing companies Residential units approx. 18 million approx. 17 million approx. 7 million in Germany Hypoport Property sales platform Property financ
Slide 22: FIO boosts innovation in a sluggish market
FIO boosts innovation in a sluggish market Real Estate Platform: property sales platform and property management platform Property sales platform volume • Development of software solutions for the sale and (€ billion) management of residential properties in the credit and -9% housing industries • Re
Slide 23: Slowdown of mortgage market is taking its toll
Slowdown of mortgage market is taking its toll Real Estate Platform: property valuation platform Property valuation platform volume • The fall in mortgage finance volume and the small loans (€ billion) threshold being raised by 50% have caused the property -1% valuation market to contract • High lev
Slide 24: Sluggish first quarter of 2023
Sluggish first quarter of 2023 Real Estate Platform: property financing platform for the institutional housing sector Volume of new loans brokered on the property • Rising interest rates and interest-rate volatility in 2022 have reduced financing platform the willingness of the housing industry to d
Slide 25: Cost-cutting measures significantly reduce start-up losses
Cost-cutting measures significantly reduce start-up losses Real Estate Platform: revenue, gross profit and EBIT +10% • Solid start to the year for the segment in a challenging Revenue (€ million) market environment 14.9 16.4 • Cross-selling by the Credit Platform segment (Europace, FINMAS, GENOPACE)
Slide 26: Insurance Platform
Insurance Platform Business model & results QUALITY POOL Insurance industry SMART INSURTECH ePEN- SION Hypoport SE, Q1 results 2023 26
Slide 27: Digitalisation of the insurance industry
Digitalisation of the insurance industry Insurance Platform segment business model End customers// employees & Distributors poolers B2B Product suppliers companies Insurance Platform Insur apps Insur apps Advisors in bank branches Dr. Other SMART INSUR Klein brokers Quality-/ DR. KLEIN Amex- pool In
Slide 28: Steady increase in the platform volume
Steady increase in the platform volume Insurance Platform: progress with the migration • Annual net premiums of just under €9 billion are managed Private insurance portfolios (annual net premiums, € billion) in the legacy systems • Migrating these portfolios to the SMART INSUR platform is 8.6 8.6 cr
Slide 29: Industrial insurance now a separate business line
Industrial insurance now a separate business line Insurance Platform: industrial insurance strategy • Strategic repositioning as a contract portfolio management Industrial insurance (annual net premiums, € billion) platform for the growing industrial insurance market concluded ~ 31 • Progress with t
Slide 30: Huge potential to digital the occupational pension market
Huge potential to digital the occupational pension market Insurance Platform: occupational pension portfolios • ePension integrates all stakeholders in the occupational Annual net policy premiums on occupational pension portfolios (€ billion) pension market, including HR departments of large compani
Slide 31: Progress with the strategic realignment
Progress with the strategic realignment Insurance Platform: revenue, gross profit and EBIT +1% • Volumes from additional clients signed up for SMART INSUR Revenue (€ million) and ePension in 2022 are being steadily migrated to the platform, but the acquisition of new clients continues to 16.7 16.8 p
Slide 32: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price info & IR)
Slide 33: Modest growth; EBIT back in positive territory
Modest growth; EBIT back in positive territory Overview of Hypoport’s key performance indicators Performance (€ million) Earnings (€ million) (Q4 adjusted for one-off items) 93.7 88.0 +6.4 +9.4 Revenue +7% EBITDA +47% +0.8 EBIT -2.5 +0.2 Gross EAT -1.6 54.6 52.2 profit Q4 ‘22 Q1 ‘23 -4% Q4 ‘22 Q1 ‘2
Slide 34: 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 Qualitative growth Start-up despite fin. crisis expansion in periods of crisis Revenue (€ million) 446 455 94 4 26 98 1999 2006 2013 2021 2022 Q1 2023 EBITDA (€ million) 77 58 2 7 8
Slide 35: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price info & IR)
Slide 36: Cost adjustments take effect in Q1 despite high inflation
Cost adjustments take effect in Q1 despite high inflation Cost development of the segments Costs* (€ million) • The reduction of costs since Q3 will lower expenditure by €35–40 million per year compared with the Q3 run rate (€60 million) -14% 58 • From Q4 2022 to Q1 2023 costs reduced by €8 million
Slide 37: Trigger events cause Germans to turn to financing
Trigger events cause Germans to turn to financing Factors of relevance for financing decisions Property purchase Remortgaging New builds Modernisation Type Reasons Life events Children, divorce, career Children changes Interest rates Changes in choice of Majority of loans have Minor change to locati
Slide 38: Market holds huge opportunities for growth
Market holds huge opportunities for growth Primary drivers of long-term market growth 100 202X: market of the future 90 ~ €75–100 billion per quarter • Persistently high immigration 80 • Regulated rental market offers little choice even to middle-income 70 tenants, thus encouraging renters to consid
Slide 39: For years Forecast for 2023 For many more years
For years Forecast for 2023 For many more years Hypoport has been Based on the assumption of a generating double-digit partial normalisation in the Hypoport will generate increases in revenue and mortgage finance market over double-digit increases in EBIT the further course of 2023, market share and
Slide 40: 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 (German only) Click here to subscribe to the IR mailing list (English) Hypoport SE, Q1 results 2023 40
Slide 41: 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 42: Annex
Annex Hypoport SE, Q1 results 2023 42
Slide 43: Investment highlights
Investment highlights ~20% 2.7 REVENUE GROWTH MODERATE DEBT LEVEL 10-year CAGR Liabilities to banks / EBITDA 2022 ~20% 20+ EBIT INCREASE YEARS 10-year CAGR of experience with platform- based business models 15+ 93% ACQUISITIONS OUR EMPLOYEES in 10 years are satisfied or even extremely satisfied with
Slide 44: Huge potential for growth in all product groups
Huge potential for growth in all product groups Market share in the three product groups Overall market in 2022: €224 billion in annual net premiums written ~ 173 164.4 ~ 31 20.3 8.6 2.1 28.9 0.2 20.1 Private insurance companies Industrial insurance companies Occupational insurance schemes Using Hyp
Slide 45: Market capitalisation of just under €1 billion
Market capitalisation of just under €1 billion Shareholder structure and share information Breakdown of shareholders as at 30 April 2023 Key performance indicators KPI Details Value Ronald Slabke (CEO) Treasury shares EPS Earnings per share in Q1 2023 €0.08 Free float (of which more than 5% held by
Slide 46: Share price performance superior to indices
Share price performance superior to indices 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
Slide 47: Hypoport's investor relations activity
Hypoport’s investor relations activity Investor events, professional analysts’ assessments, awards Recommendat Target Recent IR events Analyst Date ion price Bankhaus Metzler Sell €84.00 25 April 2023 Conferences Lyon Q1/23 Berenberg Buy €230.00 13 March 2023 Roadshows Ger/Aus/Swi, UK, USA Q1/23 BNP
Slide 48: Mortgage finance – a high-potential market
Mortgage finance – a high-potential market Long-term factors influencing private and institutional residential mortgage finance Negative factors Positive factors • Lack of available properties • Strong pent-up demand in and from the rental Finance for market OWNER- • High ancillary purchasing costs
Slide 49: Factors influencing demand in the German property market
Long-term neither interest rates nor short-term political topics matter Factors influencing demand in the German property market Factors Effects Outcome EU integration Net inward migration Economic stability Life Number of expectancy households Number of one-person Demand for households housing Lock
Slide 50: Scarce supply due to low sales volumes and limited new building
Scarce supply due to low sales volumes and limited new building Factors influencing supply in the German property market Factors Effects Outcome Life expectancy Transaction Sale of costs existing properties Alternative investment Supply of options housing Regulation New builds Limited resources (mat
Slide 51: A long-term growth market
A long-term growth market Structural factors underpinning sustained growth in the finance market Demand for Regulation of the New builds housing rental market Rental costs Excess demand Volume of property Mortgage (approx. 2 million homes) transactions finance volume Property prices Supply of Regula
Slide 52: Potential for digitalisation in the insurance market
Potential for digitalisation in the insurance market Long-term 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 a
Slide 53: First signs in Q1 that cost adjustments have been effective
First signs in Q1 that cost adjustments have been effective Progress with cost adjustments Costs (€ million) • The reduction of costs since Q3 will lower expenditure by €35–40 million per year compared with the Q3 run rate (€60 million x 4 = ~€240 million) • Costs reduced by more than 20% between Q4