Smartbroker Holding Ag · XETR:SB1
Smartbroker — wallstreet:online — FY2021 Earnings Presentation
27 slides from Smartbroker's earnings presentation, Mar 9, 2022
Slide 1: Earnings Call: Preliminary Financials 2021 | Outlook 2022
Earnings Call Preliminary Financials 2021 | Outlook 2022 Speakers Matthias Hach | CEO Roland Nicklaus | CFO Moderation Sabrina Kassmannhuber | IR 9 March 2022
Slide 2: Disclaimer
2 Disclaimer This presentation has been prepared by wallstreet:online AG (“wallstreet:online”) and comprises the written materials/slides for a presentation concerning wallstreet:online, its group companies and the product Smartbroker. By attending this presentation and/or reviewing the slides you a
Slide 3: A Unique Combination of Digital Brokerage & Relevant Financial Information
3 wallstreet:online offers a Unique Combination of Digital Brokerage & Relevant Financial Information WSO Group 2021: €51.4m revenues (+82%), €17.5m EBITDA before CAC (+45%) Transaction Media Smartbroker launched Dec 2019 Launched 1998 ▪ Comprehensive brokerage platform for private investors ▪ Finan
Slide 4: Operational Highlights 2021
4 Operational Highlights 2021 Solidified market position as largest neo broker operator in Germany by AUC & largest publisher-independent financial portal operator in German-speaking Europe TRANSACTION ▪ More than 125k new securities accounts opened during 2021 | +110% YoY ▪ Assets under custody dou
Slide 5: Smartbroker 2.0
5 “Smartbroker 2.0“ State of the art digital broker for execution-only investors & savers ▪ Smartbroker 2.0 to be launched in H2 2022 ▪ Brand new customer experience ▪ Faster service ▪ New products: e. g. selection of crypto currencies ▪ New client groups ▪ New and integrated customer data and conte
Slide 6: Record Year FY2021 Financial Performance
6 Record Year FY2021 Financial Performance
Slide 7: 2021 Financial Statements - Basis of Preparation
7 2021 Financial Statements - Basis of Preparation ▪ Consolidated P&L and balance sheet based on management information system ▪ Preliminary and unaudited ▪ Material entities include: wallstreet:online capital AG ("WOC", Smartbroker operator), wallstreet:online AG ("WSO"), Ariva AG , ABC New Media A
Slide 8: Operational KPIs
8 Operational KPIs Brokerage accounts & AUC more than doubled - Media reach also expanded Brokerage accounts, in k Assets under custody, in €bn Page impressions, in bn avg. €37k avg. €36k 246 per account per account 46 8.8 +110% 200 3.9 +105% SB Vision 2024 (2021: 162k) 117 +16% 4.3 3.4 31 Dec 2020
Slide 9: Savings Plans become Increasingly Popular
9 Savings Plans become Increasingly Popular Underpinning Smartbroker’s role as partner for long-term value creation 31 Dec 2020 31 Dec 2021 Growth in % rounded Number of savings plans, in k 39 105 +170% Savings Plan per securities account 2.5 2.6 +4% Annual Payment per securities account, in € 2,314
Slide 10: 2021E Revenue
10 2021E Revenue Over-achieved guidance - Growth stemming from both business units Revenues, in €m Revenue growth by segment, in €m 51.4 31% +82% Trans- action 28.2 69% Media 12.3 2019 2020 2021E E: estimated, according to preliminary management information system financials
Slide 11: 2021E Profitability
11 2021E Profitability 3rd consecutive year of achieving or exceeding our financial guidance Operational EBITDA, in €m Targeted investment into Smartbroker client growth, in €m 17.5 +45% 12.0 120,000 Net New Smartbroker Accounts 100% controllable 6.7 Customer Acquisition Costs (CAC) 4.3 4.4 2019 202
Slide 12: 2021E Preliminary Expenses
12 2021E Preliminary Expenses Marketing and Personnel are main cost drivers – to expand and support business in €m 2020 2021E Change in % Revenue 28.2 51.4 +82% Other Operating Income 0.3 0.9 Data & IT Costs (5.4) (8.9) +67% Marketing (8.1) (15.4) +90% Personnel (8.0) (15.8) +97% Other (2.5) (7.7) +
Slide 13: 2021E Preliminary Balance Sheet
13 2021E Preliminary Balance Sheet Cash and equity respectively represent 33% and 66% of balance sheet total Assets Equity & Liabilities in €m 31.12.2020 31.12.2021E % of total in €m 31.12.2020 31.12.2021E % of total Fixed Assets 28.8 41.9 54 % Equity 30.2 51.1 66 % Intangible Assets 20.5 38.7 50 %
Slide 14: Guidance FY2022 Continuing Our Profitable Growth
14 Guidance FY2022 Continuing Our Profitable Growth
Slide 15: 2022 Outlook | A year of two halves
15 2022 Outlook | A year of two halves Smartbroker 2.0: Entering a new era – improving all key aspects of our business “Smartbroker 2.0” to be launched in H2 2022 ▪ Immediate access for new clients to comprehensive product and functionality ▪ Subsequent migration of current customer base Impact on k
Slide 16: Operational KPIs 2022 Guidance
16 Operational KPIs 2022 Guidance Focusing on the Launch of „Smartbroker 2.0“ Brokerage accounts, in k Assets under custody, in €bn avg. €37k avg. €36k avg. €34k Temporary slow-down 300 per account per account per account +55k new accounts +17% 10.3 246 8.8 +129k new accounts 117 4.3 31 Dec 2020 31
Slide 17: Financial Guidance 2022
17 Financial Guidance 2022 25% revenue growth & temporary increase in investment Revenues, in €m Operational EBITDA before and after Smartbroker CAC, in €m 62.0 -67.0 CAC Op. EBITDA 16 -18 +25% 17.5 Total Investment into 51.4 Smartbroker 2.0 of c€20m ▪ In 2021 (c40% of total) 44% 12.0 and 2022 (c60%
Slide 18: Mid Range Outlook
Mid Range Outlook wallstreet online 3% Smartbroker
Slide 19: The Brokerage Value Chain
19 The Brokerage Value Chain Smartbroker’s Current Offering Bank Debit Fund Cash Frontend Web card -ing Securities Account System Transaction Platform Onboarding Exchanges Processors Order routing Clearing, Booking trades Domestic settlement Transaction reporting Customer Frontend App Taxation Custo
Slide 20: The Brokerage Value Chain: Smartbroker 2.0
20 The Brokerage Value Chain: Smartbroker 2.0 Extensive coverage expansion through in-house development & partnerships Partner Bank Debit Fund Cash Frontend Web card -ing Securities Account System Transaction Platform Partner Exchanges Onboarding Processor Order routing Clearing, Booking trades Dome
Slide 21: The Brokerage Value Chain: Smartbroker 2.0
21 The Brokerage Value Chain: Smartbroker 2.0 More flexibility in the cooperation with our partners Partner Bank Debit Fund Cash Frontend Web card -ing Securities Account System Transaction Platform Partner Exchanges Onboarding Processor Order routing Clearing, Booking trades Domestic settlement Tra
Slide 22: Commercial Impact of Smartbroker 2.0
22 Commercial Impact of “Smartbroker 2.0“ Establishing greatly improved Business Model for the Brokerage Segment CLIENTS TRADES REVENUE CASH FLOW
Slide 23: Commercial Impact of Smartbroker 2.0
23 Commercial Impact of “Smartbroker 2.0“ New clients, trades per client and revenue per trade to grow CLIENTS TRADES REVENUE CASH FLOW Number of new clients Number of trades HIGHER HIGHER App Comprehensive and access Revenue per trade Desktop HIGHER No more revenue share
Slide 24: Commercial Impact of Smartbroker 2.0
24 Commercial Impact of “Smartbroker 2.0“ Customer acquisition costs and cost per trade to decline CLIENTS TRADES REVENUE CASH FLOW Number of new clients Number of trades HIGHER HIGHER App Comprehensive and access Revenue per trade Desktop HIGHER Cost per new client Cost per trade No more revenue sh
Slide 25: Commercial Impact of Smartbroker 2.0
25 Commercial Impact of “Smartbroker 2.0“ Cash flow per trade expected to double CLIENTS TRADES REVENUE CASH FLOW Number of new clients Number of trades Cash flow per trade HIGHER HIGHER MATERIALLY HIGHER App Comprehensive and access Revenue per trade Desktop HIGHER Cost per new client Cost per trad
Slide 26: Smartbroker 2.0: Optimized Business Model
26 Smartbroker 2.0: Optimized Business Model Taking full advantage of the customer base built up since 2019 Evolving the commercial model from a linear into a fully scalable structure ▪ Under the current model, on a per customer basis, a small number of Smartbroker customers generates roughly the sa
Slide 27: Thank You for Your Attention
27 Thank You Thank You! for Your Attention