Smartbroker Holding Ag · XETR:SB1
Smartbroker — wallstreet:online — Investor Presentation (May 2022)
22 slides from Smartbroker's investor presentation, May 2022
Slide 1: Unique Operating Model To Digitise Europe's Largest Retail Brokerage Market
Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market May 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: Redefining Digital Investing
3 Redefining Digital Investing Unique Combination of Digital Brokerage & Relevant Financial Information Media Transaction: Smartbroker The largest publisher-independent financial portal operator The largest neo broker operator by assets under Host of the largest custody in Germany finance community
Slide 4: Existing Media Revenue Base & Strong Profitability
4 Existing Media Revenue Base & Strong Profitability Allow for Self-Financing of Smartbroker WSO Group 2021E Transaction Media Smartbroker launched Dec 2019 Launched 1998 €51m revenues (+82%) €18m EBITDA ▪ Gathered 246k brokerage before CAC (+45%) accounts in 2yrs ▪ 3.9bn page impressions 31% ▪ €8.8
Slide 5: Operational KPIs 2021
5 Operational KPIs 2021 Brokerage Accounts & Assets 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 D
Slide 6: Revenue 2021E
6 Revenue 2021E 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 7: Profitability 2021E
7 Profitability 2021E 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 2020
Slide 8: Award-Winning Neo Broker for Private Investors & Savers
8 Award-Winning Neo Broker for Private Investors & Savers Germany‘s ONLY full-service broker with zero fees ▪ Trade virtually all securities licensed in Germany on all German exchanges ▪ Zero securities account fee ▪ Zero to €4 per transaction ▪ Zero downtime ▪ Free savings plans ▪ Derivatives tradi
Slide 9: Smartbroker 2.0
9 Smartbroker 2.0 Brand New Customer Experience & State-of-the-Art Functionality ▪ Smartbroker 2.0 to be launched in H2 2022 ▪ Faster service ▪ New products: e. g. selection of crypto currencies ▪ Smartbroker Cloud Platform ▪ Integrated customer data and content platform ▪ New client groups ▪ Digita
Slide 10: Commercial Impact of Smartbroker 2.0
10 Commercial Impact of Smartbroker 2.0 Establishing a Greatly Improved Business Model for the Brokerage Segment 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 C
Slide 11: Focussed Financial Media Coverage
11 Focussed Financial Media Coverage Our Targeted Audience Makes us a Preferred Partner for Advertisers ▪ Media outlets across Desktop, Mobile Web, App ▪ 836k registered users in our discussion forums ▪ Clearly defined audience ▪ Users with above-average income and education level ▪ We estimate to r
Slide 12: Personal Investing in Germany: At the Beginning of a Seismic Shift
12 Personal Investing in Germany: At the Beginning of a Seismic Shift
Slide 13: German Households' Financial Assets Grow by 6% p.a.
13 German Households’ Financial Assets Grow by 6% p.a. Investments in Listed Equities & Funds Growing at Double this Rate Digitally-native neo brokers and robo advisors account for less than 3% market share Total financial assets of German households, in €bn, 2021E Total financial assets Internation
Slide 14: Market Pricing Remains Largely Stable
14 Market Pricing Remains Largely Stable Zero-fee Commissions Enable Broad Access To Capital Markets Approximate trading costs of select German brokers, in € Approx. % of overall XO market 70% 25% 5% Commissions as % of total revenue ~65% ~75-85% ~10% 17 17 17 17 10 4 6 5 1 0 Broad Banks XO-Focussed
Slide 15: Key Tailwinds
15 Key Tailwinds Consistently Expanding Our Market Opportunity Growing share of XO investors using and trusting digital brokers ▪ Widespread access to reliable financial information, brokerage & investment solutions ▪ User-friendly technology & established commission-free business models Sustained d
Slide 16: Guidance 2022
16 Guidance 2022 Continuing Our Profitable Growth
Slide 17: 2022 Outlook | A Year of Two Halves
17 2022 Outlook | A Year of Two Halves Smartbroker 2.0 to be Launched in H2 2022 ▪ Complete overhaul of user experience, functionality, branding, back-end technology ▪ Immediate access for new clients to comprehensive product and functionality ▪ Subsequent migration of current customer base Impact o
Slide 18: Operational KPIs 2022 Guidance
18 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 De
Slide 19: Financial Guidance 2022
19 Financial Guidance 2022 25% Revenue Growth & Temporary Increase In Investment Revenues, in €m Operational EBITDA before and after Smartbroker CAC, in €m 62 - 67 CAC Op. EBITDA 16 - 18 +25% 17.5 Total Investment into 51.4 Smartbroker 2.0 of c€20m ▪ In 2021 (c40% of total) and 44% 12.0 2022 (c60%)
Slide 20: Our Growth Cycle
20 Our Growth Cycle Long-term Value Creation for Our Clients and Our Shareholders Offering best-in- class online broker & pricing 45% 110% Brokerage accounts Op. EBITDA growth Funding our Gaining Optimized growth growth market SB 2.0 strategy & share business model product among €20m 105% driving re
Slide 21: Investing into Two Main Trends at the Heart of the Digital Transformation
21 ▪ Unique Target Operating Model ▪ Strong Operational and Financial Momentum ▪ EUR 7 Trillion (7 x 1012) Market Growing at 6% p.a. for the Brokerage Business Alone ▪ Best Positioned for Material Market Share Gain Investing into ▪ Well-defined Product Roadmap to Monetise Two Main Trends Opportuniti
Slide 22: wallstreet:online AG contact
22 wallstreet:online AG Ritterstr. 11 | 10969 Berlin ir@wallstreet-online.de About | The wallstreet:online Group operates Smartbroker - a multiple award-winning online broker, which is the only provider in Germany to combine the extensive product range of traditional brokers with the extremely favou