Plus500 Ltd. · LSE:PLUS
Plus500 — FY2014 Earnings Presentation
25 slides from Plus500's earnings presentation, February 2015
Slide 1: Annual Results for the twelve months ended 31 December 2014
Annual Results for the twelve months ended 31 December 2014 London Stock Exchange Symbol: PLUS 1
Slide 2: Disclaimer
Disclaimer The Presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of the Company, nor shall it (or any part of it), or the fact of its distribution, form the basis of
Slide 3: Highlights
Highlights Plus500 in numbers: Plus500 has developed and operates an online trading platform for retail customers to trade #1 >50 31 Rated on mobile Countries Languages Contracts For Difference (CFDs) in more than app stores 50 countries Proprietary technology platform is user $228.9m +99% 63.6% Gro
Slide 4: Results Summary
Results Summary FY 2014 Active Customers* increased 24% to 105,976 (FY 2013: 85,795) FY 2014 New Customers** increased 17% to 66,553 (FY 2013 : 56,819) Ongoing strengthening in Plus500’s market position with further expansion in Europe Significant increase in smartphone and tablet users accessing Pl
Slide 5: Business Overview
Business Overview Financial Overview Outlook 5
Slide 6: Products
Products CFD products Platform and Devices Trading Platform Supporting 31 languages in 2,000 CFD products Retail customers only more than 50 countries 6
Slide 7: Business model
Business model Revenues International Revenue Split FY 2014 Footprint Plus500UK FCA UK-regulated subsidiary Dealing Spreads Plus500 Ltd. Market Premium 1% Israel Headquarters Difference between the buy price 12% and the sell price of a CFD Overnight Premiums Charges on open customer Spreads 87% posi
Slide 8: Plus500 technology: our key asset
Plus500 technology: our key asset Proprietary technology, developed in-house: key differentiator and flexible advantage System Architecture “Marketing User Interface Machine” Back Affiliate Office Programme Hedging and Risk Fraud Payment Management Interface 8
Slide 9: Marketing infrastructure: online is key
Marketing infrastructure: online is key Total marketing investment in $m Online advertising 100 Using our proprietary automated marketing platform 80 ensures that spending is efficient with a demonstrable 60 return on investment 61.3 40 35.9 20 23.0 The “Marketing Machine” 0 11.9 19.8 2010 2011 2012
Slide 10: Marketing infrastructure: affiliates program
Marketing infrastructure: affiliates program A large international affiliates program Over 5,000 active affiliates who advertise Plus500 Paid on success only Easy-to-access and use affiliates’ portal of marketing collateral Fully automated online analysis and reward platform Localised marketing tool
Slide 11: Marketing infrastructure: offline campaigns
Marketing infrastructure: offline campaigns Increased activity offline to strengthen the Plus500 brand Continue with targeted campaigns Official sponsor of Atlético Madrid FC Eurosport TV ads - Key campaigns from 2014 infrastructure • Roland Garros • US open • Tour de France • Snooker world champion
Slide 12: The Plus500 brand
The Plus500 brand United Kingdom Italy Germany Spain (Data from Google Trends web searches, June 2010 – Feb 15, 2015) 12
Slide 13: Mobile as a key growth driver
Mobile as a key growth driver Number of Signups by Device Revenues by Device 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 1Q12 3Q12 1Q11 2Q11 3Q11 4Q11 2Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 2Q13 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 3Q13
Slide 14: Risk management
Risk management Financial risk management is key to the business Risk Management Advisory Market Risk Spread of customers acts as a natural risk-mitigation: No dominant customers Real-time monitoring of exposure limits by: Regulators Individual clients Individual instruments Total Company exposure W
Slide 15: Regulation and compliance
Regulation and compliance Client Take-On Ltd FCA / CySEC / ASIC rules set out client Israel Headquarters take-on requirements Client money treated the same across jurisdictions AU Pty Ltd CY Ltd Customers must self-certify their UK Ltd FCA Australian (ASIC) Cyprus (CySEC) understanding of the risks
Slide 16: Financial Overview
Business Overview Financial Overview Outlook 16
Slide 17: FY 2014: best performance yet
FY 2014: best performance yet Key Financial Indicators – Income Statement ($’000): Twelve months ended December 31 2014 2013 FY14/FY13growth Trading income (net) 228,865 115,088 99% Selling and marketing expenses 75,170 44,322 70% Administrative and general expenses 8,373 3,563 134% EBITDA 145,444 6
Slide 18: Growing cash balances
Growing cash balances Key Financial Indicators – Cash Flow: ($ ,000): Twelve months ended December 31 FY14/FY13 2014 2013 Growth Operating activities: Cash generated from operations 141,259 66,991 111% Income tax paid - net (22,407) (9,894) 126% Net cash provided by operating activities 118,852 57,0
Slide 19: Balance sheet strengthened
Balance sheet strengthened Key Financial Indicators – Balance Sheet: ($’000): Twelve months ended December 31 FY 14/FY 13 2014 2013 Growth Cash and cash equivalents 140,201 85,285 64% Other Current Assets 3,996 3,454 16% Total Current Assets 144,197 88,739 62% Non Current Assets 2,109 1,354 56% Tota
Slide 20: Client base continues to grow fast
Client base continues to grow fast Number of Active Accounts Number of New Accounts 130,000 100,000 90,000 110,000 80,000 105,976 70,000 90,000 +24% 85,795 60,000 +17% 66,553 70,000 50,000 56,819 50,000 40,000 30,000 30,000 20,000 10,000 10,000 FY 13 FY 14 FY 13 FY 14 Europe and Australia are among
Slide 21: ARPU vs. AUAC
ARPU vs. AUAC ARPU ($) AUAC ($) 2,000 2,160 2,000 1,800 +63% 1,600 1,500 1,400 1,325 1,200 1,000 1,000 800 921 600 +46% 500 632 400 200 0 0 FY 13 FY 14 FY 13 FY 14 Significant growth expected in ARPU in 2015 due to improved branding and retention initiatives 21
Slide 22: Outlook
Business Overview Financial Overview Outlook 22
Slide 23: Outlook
Outlook Focus on organic growth Expand mobile offering through support of new devices such as Windows Phone and Surface tablets Continue to expand online marketing spending in the same cost effective manner Increase the number of instruments available to trade Add new licenses across new geographies
Slide 24: Appendices
Plus500 Appendices 24
Slide 25: Contact details
Contact details Elad Even-Chen, Ltd. Head of Investor Relations MATAM, Building 25 Tel: +972-4-8189503 Haifa, 31905 Israel Email: ir@Plus500.com UK Ltd. AU Pty Ltd. 45 Moorfields 19-21 Hunter St London, EC2Y9AE Sydney, 2000 UK Australia CY Ltd. 1, Siafi, P.C. 3042 Limassol, Cyprus 25