Flatexdegiro Se · XETR:FTK
Flatexdegiro — Q4 2024 Earnings Presentation
63 slides from Flatexdegiro's earnings presentation, Feb 25, 2025
Slide 1: Preliminary Results 2024 & Strategic Priorities
Preliminary Results 2024 & Strategic Priorities 25 February 2025
Slide 2: Disclaimer
P r e lim in ar y Re s u lt s 2 02 4 Disclaimer Preliminary FY 2024 – Unaudited Results This release contains unaudited information that is subject to change and that is not intended to be complete. Non-IFRS measures (APMs) This presentation includes non-IFRS measures. These measures are alternative
Slide 3: Today's presenter
Today’s presenter Oliver Behrens Dr. Benon Janos Chief Executive Officer Chief Financial Officer
Slide 4: Today's agenda
Today’s agenda 1 Preliminary Results 2024 2 Outlook 2025 3 Strategic Priorities 4 Mid-Term Guidance
Slide 5: Preliminary Results 2024
Preliminary Results 2024
Slide 6: Highlights
P r e lim in ar y Re s u lt s 2 02 4 Highlights Record year 2024 with Revenues and Focus back on business and customers, Net Income above Guidance launch of crypto trading in Germany Strategic priorities on growth, Ambition 2027: new products & diversification and Revenues of ~ 650 m EUR and an effi
Slide 7: Customer Growth
Customer Growth
Slide 8: Strong customer growth continued
P r e lim in ar y Re s u lt s 2 02 4 Strong customer growth continued Monthly customer growth 2024 constantly above 2023 with significant acceleration in Q4 2024 Full-year growth of 421 k (+24 %) close to 2022-level, customer acquisition costs of 75 Euro (reduction of 24 % vs. 2023) Monthly Customer
Slide 9: Customer base of over 3 million reached
P r e lim in ar y Re s u lt s 2 02 4 Customer base of over 3 million reached Customer base grown by 1 m over the last 3 years with annual growth rates between 13 % and 16 % Share of flatex customers stable at 25 % in 2023 and 2024 Customer accounts (m) +16% +13% +14% 3 2 1 0 Dec 21 Mar 22 Jun 22 Sep
Slide 10: Industry-leading customer growth
P r e lim in ar y Re s u lt s 2 02 4 Industry-leading customer growth Leading customer growth over the last 3 years with CAGR of 14 % Stronger growth only observed at one non-listed peer with currently strong pivot from neo-brokerage towards neo- banking Customer growth CAGR of listed peers (Dec 202
Slide 11: Stable share of active customers on a growing basis
P r e lim in ar y Re s u lt s 2 02 4 Stable share of active customers on a growing basis Largest active customer base with close to 1 m customers trading in Q4/2024 Share of active customers (per quarter) slightly up in 2024 to > 30 %, with relative stable development over the last 2.5 years Active
Slide 12: Commission Income
Commission Income
Slide 13: Stabilized trading activity per customer
P r e lim in ar y Re s u lt s 2 02 4 Stabilized trading activity per customer Range of 20-25 trades per customer p.a. on average stable for the last 2.5 years Trading activity higher at flatex, with very similar trends at both brands Quarterly trading activity (average number of trades per customer,
Slide 14: Number of Settled Transactions increased at both brands
P r e lim in ar y Re s u lt s 2 02 4 Number of Settled Transactions increased at both brands Growing customer base drives increase in Settled Transactions (+11 %) Outperformance over 2023 accelerated especially in the second-half of 2024 Settled Transactions per quarter (m) Settled Transactions per
Slide 15: Average commission per transaction further improved
P r e lim in ar y Re s u lt s 2 02 4 Average commission per transaction further improved Increase in 2024 (+8 %) driven by price adjustments in May 2023, positive product mix and higher share of US trades First quarter usually with higher commission per transaction due to booking of annual fees Aver
Slide 16: 2024 Summary: Development Commission Income
P r e lim in ar y Re s u lt s 2 02 4 2024 Summary: Development Commission Income +14 % Stable Commission Income (m EUR) Customer Growth Active customer rates 290 282 at ~ 30% per quarter 272 270 Stable +8 % 250 235 230 Transaction activity Average commission at ~22x per transaction 210 190 +20 % 170
Slide 17: Interest Income
Interest Income
Slide 18: Constant new Net Cash Inflows on our platform
P r e lim in ar y Re s u lt s 2 02 4 Constant new Net Cash Inflows on our platform Total Net Cash Inflows in 2024 of 6.6 bn EUR (+47 % vs 2023), with 95 % being invested in securities (91 % in 2023) Cash per customer increased in 2024 with falling interest rates, leading to 17 % increase in Cash und
Slide 19: Underlying basis of Interest Income with solid growth
P r e lim in ar y Re s u lt s 2 02 4 Underlying basis of Interest Income with solid growth Cash under Custody has grown over the last 3 years by more than 1 bn EUR (37%) from 3 bn EUR to > 4 bn EUR Margin Loan Book has benefitted from customer growth and additional access of DEGIRO customers Cash un
Slide 20: 2024 Summary: Development Interest Income
P r e lim in ar y Re s u lt s 2 02 4 2024 Summary: Development Interest Income +17% +9% Interest Income (m EUR) 200 Cash under Average ECB 180 Custody deposit rate 180 160 +31% +18 % 140 136 120 Margin Loan Average Margin Book Loan rate 100 80 72 +32 % 60 40 Growth in Interest Income 20 0 2022 2023
Slide 21: Revenues
Revenues
Slide 22: Solid Revenue growth
P r e lim in ar y Re s u lt s 2 02 4 Solid Revenue growth Revenue growth of 23 % to 480 m EUR, surpassing previous record of the Covid-/Meme-Stock-Year 2021 (415 m EUR) by 15% Share of Interest Income increased from 35 % in 2023 to 38 % in 2024 Revenue split (m EUR) per quarter Revenue split (m EUR)
Slide 23: Costs & Earnings
Costs & Earnings
Slide 24: Operating Expenses elevated in 2024
P r e lim in ar y Re s u lt s 2 02 4 Operating Expenses elevated in 2024 Personnel expenses include ~ 5 m EUR of provisions for measures in 2025 and ~ 7 m EUR for long-term variable compensation Admin expense increase driven by higher need for third-party fees (e.g. consulting, advisory, legal) Pers
Slide 25: EBITDA across 2024 at a constant high level
P r e lim in ar y Re s u lt s 2 02 4 EBITDA across 2024 at a constant high level EBITDA margin in all quarters 2024 between 40-45 % For the first time, full-year EBITDA crossed the 200 m EUR line EBITDA (m EUR) and EBITDA margin (%) per quarter EBITDA (m EUR) and EBITDA margin (%) 60 60% 250 50% 202
Slide 26: Record Net Income achieved
P r e lim in ar y Re s u lt s 2 02 4 Record Net Income achieved Depreciation & Amortization in 2024 including ~ 2.5 m EUR from streamlining IT development activities Record Net Income of 112 m EUR achieved despite some one-time cost effects D&A, Financial Result, Tax (m EUR) Net Income (m EUR) and N
Slide 27: Outcome 2024 Guidance
Outcome 2024 Guidance
Slide 28: Actual performance versus FY 2024 Guidance
P r e lim in ar y Re s u lt s 2 02 4 Actual performance versus FY 2024 Guidance Original Guidance Revised Guidance Slightly above upper Revenues +5 % to +15 % YoY +23 % end of +15 % YoY Upper end of Net Income +25 % to +50 % YoY +55 % +25 % to +50 % YoY 28
Slide 29: Outlook 2025
Outlook 2025
Slide 30: Outlook 2025
P r e lim in ar y Re s u lt s 2 02 4 Outlook 2025 Commission income to grow: Interest income to decline: Cost base to be brought down: • Customer growth of at least 10 % • Lower average ECB rates • Personnel expenses below 2024 • Stable trading activity • Lower average Margin Loan rates • Marketing
Slide 31: Strategic Priorities
Strategic Priorities
Slide 32: flatexDEGIRO has reached a pivotal stage
P r e lim in ar y Re s u lt s 2 02 4 flatexDEGIRO has reached a pivotal stage Last 3 years Today Next 3 years Challenging market environment for trading: Financial record-year with solid Re-set of interest rate environment in 2025 growth • Uncertainty due to war in Ukraine Increasing retail appetite
Slide 33: Europe's leading investment platform to build wealth
P r e lim in ar y Re s u lt s 2 02 4 flatexDEGIRO – Europe’s leading investment platform to build wealth We ensure the highest We prioritize our security for our customers' needs customers' assets We ensure superior We strive to support market access at our communities low costs We are dedicated to
Slide 34: Strategic priorities for the next three years
P r e lim in ar y Re s u lt s 2 02 4 Strategic priorities for the next three years Unlocking potential by switching gears, focusing on commercial projects and achieving scalability on one platform Measures based on leveraging opportunities that are under our control Grow and Strengthen Diversify Pro
Slide 35: Increase Efficiency
Increase Efficiency
Slide 36: Realize efficiency gains and cost control
P r e lim in ar y Re s u lt s 2 02 4 Realize efficiency gains and cost control Acquisition of DEGIRO, strong organic growth and regulatory challenges have led to increased organizational complexity. Initiated cost reductions to be stringently continued Operational efficiency: Catching-up to most rel
Slide 37: Reduce complexity and increase focus
P r e lim in ar y Re s u lt s 2 02 4 Reduce complexity and increase focus Simplifying organizational structure by moving to a European “SE” Ongoing divestment of non-core financial engagements Organizational changes Divesting alternative credit and investing portfolio • Adapt legal entity from Germa
Slide 38: Grow and Strengthen Existing Business
Grow and Strengthen Existing Business
Slide 39: Building on a strong and growing customer base
P r e lim in ar y Re s u lt s 2 02 4 Building on a strong and growing customer base Continuing to grow our customer base by a CAGR of at least 10 %, crossing 4 million by end of 2027 Better supporting trading active customers and reactivating inactive customers Concrete measures Indicative 3-year cu
Slide 40: Reactivating existing customers
P r e lim in ar y Re s u lt s 2 02 4 Reactivating existing customers Activity rate slightly below 50 % in 2024, leaving significant potential with known but inactive customers New customer quality increasing in 2023 and 2024, after dilution in particular in 2021 Size of bubble represents Activity of
Slide 41: Increasing local presence in key markets
P r e lim in ar y Re s u lt s 2 02 4 Increasing local presence in key markets Top 6 countries account for ~ 80 % of total customer base. Next to home markets Netherlands and Germany, more countries have meanwhile reached critical size of well > 100 k customers Largest countries by number of customer
Slide 42: Optimizing use of deposits
P r e lim in ar y Re s u lt s 2 02 4 Optimizing use of deposits Current Treasury strategy leaves room for more active strategy without abandoning the fundamentally risk-averse approach Limited offering of Term Deposits adds investment opportunities for customers and strengthens deposit base Simplifi
Slide 43: Diversify Product and Service Offering
Diversify Product and Service Offering
Slide 44: Crypto Trading – High transparency & attractive fees
P r e lim in ar y Re s u lt s 2 02 4 Crypto Trading – High transparency & attractive fees define new industry standard Successful launch in Germany in December 2024 to be followed by a European-wide roll-out in 2025 German offering: Fixed total cost of 0.6 % (Majors) to 0.7 % (Minors), including spr
Slide 45: Crypto Trading – Teaming up with partners
P r e lim in ar y Re s u lt s 2 02 4 Crypto Trading – Teaming up with partners to provide best-in-class solutions flatexDEGIRO’s brokerage platforms serve as the single interface to customers Specialized partners ensure highest quality standards and minimize risk & time to market 3 integrated partne
Slide 46: Crypto Trading – Expanding local reach and range of products
P r e lim in ar y Re s u lt s 2 02 4 Crypto Trading – Expanding local reach and range of products Roll-out of crypto trading to flatex Austria and across Europe via DEGIRO in 2025 Passporting using MiCAR license from BaFin (application submitted) flatex Germany Austria Netherlands, Further DEGIRO Fr
Slide 47: Unlocking recurring revenue potential via Securities Lending
P r e lim in ar y Re s u lt s 2 02 4 Unlocking recurring revenue potential via Securities Lending Valuable enhancement to our product offering, enabling the generation of additional income for our customers and us European retail asset portfolio highly interesting for institutional lending desks Pro
Slide 48: Saving Plans and Fractional Shares
P r e lim in ar y Re s u lt s 2 02 4 Saving Plans and Fractional Shares – preparing for pension reforms Enhancing Saving Plans offering to ensure state-of-the-art product choice Increasing need to address the pension gap across Europe Enhancing Savings Plans in Germany German pension reforms • Addit
Slide 49: Business Process Outsourcing – white-label solution
P r e lim in ar y Re s u lt s 2 02 4 Business Process Outsourcing – full-service offering seamlessly integrated as white-label solution into partner bank's market presence Proven track record since 2013 Online IT-System Retail Investor Non-retail bank Banking Infrastructure IT-Governance • Overnight
Slide 50: Business Process Outsourcing – Deposits as a Service
P r e lim in ar y Re s u lt s 2 02 4 Business Process Outsourcing – offering “Deposits as a Service” in an attractive market Positive interest rate environment and regulatory changes create an attractive market opportunity Leveraging existing B2B business to diversify business model and increase sha
Slide 51: Mid-term Guidance
Mid-term Guidance
Slide 52: Ambition for 2027
P r e lim in ar y Re s u lt s 2 02 4 Ambition for 2027 Accelerate topline growth: Deliver operational leverage: Close valuation gap to peers: • Constantly increase customer base and • Increase share of recurring revenues • Deliver on commercial and financial goals gradually improve trading activity
Slide 53: Europe's leading investment platform to build wealth
P r e lim in ar y Re s u lt s 2 02 4 flatexDEGIRO – Europe’s leading investment platform to build wealth 53
Slide 54: Q&A Session
Q&A Session
Slide 55: Investor Relations Contact
Investor Relations Contact Achim Schreck Laura Hecker Head of IR and Corporate Communications Director Investor Relations Mail: achim.schreck@flatexdegiro.com Mail: laura.hecker@flatexdegiro.com Mobile: +49 160 9277 4570 Mobile: +49 160 3064 404 flatexDEGIRO AG Address: Omniturm, Große Gallusstraße
Slide 56: Appendix
Appendix
Slide 57: Q4 2024 Performance
Q4 2024 Performance
Slide 58: Commercial Performance
P r e lim in ar y Re s u lt s 2 02 4 Commercial Performance Gross customer additions (k) Assets under Custody (bn EUR) Settled Transactions (m) +60% +38% +25% +34% +11% +13% 16.8 124 71.5 16.1 121 15.2 64.6 14.8 61.1 13.5 58.0 92 51.7 85 77 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 Dec 23 Mar 24 Jun 2
Slide 59: Development of Assets under Custody
P r e lim in ar y Re s u lt s 2 02 4 Development of Assets under Custody Securities (bn EUR) Cash (bn EUR) +40% +17% +10% +14% 4.3 67.2 60.9 3.7 3.6 3.6 3.6 57.6 54.4 48.1 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 59 Note: Rounding differences may occu
Slide 60: Net Cash Inflows of EUR 6.6 bn in FY 2024
P r e lim in ar y Re s u lt s 2 02 4 Net Cash Inflows of EUR 6.6 bn in FY 2024 (+47% YoY) Net Cash Inflows (bn EUR) 6.6 2023 2024 • Our clients continue to deploy cash onto our platform. We saw positive net cash inflows of > 550 million EUR per month on average in FY 2024 4.5 • On a FY 2024 basis, 9
Slide 61: Revenue split
P r e lim in ar y Re s u lt s 2 02 4 Revenue split Revenues (m EUR) Commission Income (m EUR) Interest Income (m EUR) +26% +39% +15% +13% +20% +1% 127 123 48 119 77 75 112 44 44 45 100 66 64 39 55 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q4/2023 Q1/2024 Q2/2024
Slide 62: Commission per transaction
P r e lim in ar y Re s u lt s 2 02 4 Commission per transaction +11% +6% 4.64 € 4.57 € 4.33 € 4.32 € 4.26 € 4.16 € 4.11 € 3.99 € Q1/2023 Q2/2023 Q3/2023 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 62
Slide 63: Profitability in Q4 2024
P r e lim in ar y Re s u lt s 2 02 4 Profitability in Q4 2024 EBITDA (m EUR) Net Income (m EUR) -3% -17% 54 53 +10% +4% 52 50 31 31 30 46 26 25 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 Q4/2023 Q1/2024 Q2/2024 Q3/2024 Q4/2024 63