Plus500 Ltd. · LSE:PLUS
Plus500 — FY2022 Earnings Presentation
32 slides from Plus500's earnings presentation, Feb 14, 2023
Slide 1: FY 2022 Preliminary Results
FY 2022 PRELIMINARY RESULTS London Stock Exchange symbol: PLUS Presented by: David Zruia, Chief Executive Officer Elad Even-Chen, Chief Financial Officer 14 February 2023
Slide 2: Agenda
AGENDA OVERVIEW OPERATING FINANCIAL OUTLOOK REVIEW OVERVIEW
Slide 3: Overview
al OVERVIEW * Plus500 I7'S TRADING WITH A PLUS
Slide 4: A long track record of profitable growth & cash generation
A LONG TRACK RECORD OF PROFITABLE GROWTH & CASH GENERATION Since IPO year in 2013, Plus500 has generated: Debt-free since inception 25% CAGR revenue growth 101% average annual Operating between 2013-2022 driven by cash conversion¹ 2013-2022 growing customer base Cash from operations c.57% average an
Slide 5: FY 2022 – Another excellent performance
FY 2022 – ANOTHER EXCELLENT PERFORMANCE 24M+ 12 112% Over $900m $1.7bn #1 Registered International Operating Cash Cash1 and no debt Shareholder Returns OTC2 Provider Customers Operating Conversion since IPO in 2013 in the UK, Germany Licenses and Spain3 500+ 50% c.$8,000 50+ 3 Employees Globally Fem
Slide 6: FY 2022 – Another excellent performance
FY 2022 – ANOTHER EXCELLENT PERFORMANCE Growth in all key financial metrics in $832.6m $453.8m 55% $3.81 $930.2m Revenue EBITDA EBITDA Margin EPS (basic) Cash Balances FY 20 22 c o m p a re d with FY 20 21 (16% Growth) (17% Growth) (2% Growth) (25% Growth) (24% Growth) STRATEGY Further development o
Slide 7: Plus500 well placed to deliver growth and value
PLUS500 WELL PLACED TO DELIVER GROWTH AND VALUE Robust track record of Proprietary technology is a key Diversified product portfolio growth and value delivery differentiator and growth enabler and geographic footprint Organic investments and Reinforced financial position enables Major growth opportu
Slide 8: Our technology capability and funnel
OUR TECHNOLOGY CAPABILITY AND FUNNEL Technology-Centric Business Model Marketing CRM Payments Education Trading & Risk Customer Tech Management Engagement Technology Components Supporting End-to-End Customer Lifecycle CUSTOMERS PRODUCTS MARKETING RISK Customer centric culture Wide range of products:
Slide 9: Our strategic roadmap
OUR STRATEGIC ROADMAP New Products New Markets Expanding Offering Deepening Customer in Existing Markets Engagement 9
Slide 10: Operating Review
Q OPERATING REVIEW * Plus500 I7'S TRADING WITH A PLUS
Slide 11: FY 2022 Operating Overview
FY 2022 OPERATING OVERVIEW KEY OPERATIONAL DRIVERS OPERATIONAL OUTPUTS Our proprietary technology 87% of OTC revenue derived from customers trading with Plus500 for over a year Continued investment in our people Customer deposits of $2.3bn, highlighting on-going Deeper engagement with our customer l
Slide 12: The US growth opportunity
THE US GROWTH OPPORTUNITY INSTITUTIONAL OPPORTUNITY RETAIL OPPORTUNITY Execution B2B New B2B line of business as a market infrastructure provider Brokerage-execution and clearing services for institutional clients Long-standing proprietary technology futures trading platform Launched TradeSniper, in
Slide 13: Financial highlights
FINANCIAL HIGHLIGHTS Strong revenue REVENUE EBITDA EARNINGS PER SHARE performance ($m) ($m) (Basic) ($) 327.9 437.2 720.4 354.5 872.5 718.7 832.6 151.0 259.2 506.0 192.3 515.9 387.1 453.8 1.02 1.75 3.33 1.35 4.71 3.06 3.81 Efficient cost base supported EBITDA growth 308.3 321.2 1.73 157.0 154.1 254.
Slide 14: FY 2022 KPIs by region
FY 2022 KPIS BY REGION Active % New % Revenue % ARPU3 Customers proportion Customers2 proportion ($m) proportion ($) UK 37,627 13% 16,101 15% 100.4 12% 2,667 EEA 162,747 58% 59,501 56% 372.9 45% 2,291 Australia 28,252 10% 11,051 10% 67.2 8% 2,379 RoW1 52,143 19% 19,896 19% 292.1 35% 5,602 Total 280,
Slide 15: Our product offerings
OUR PRODUCT OFFERINGS TRADING PLATFORMS Across operating systems: Webtrader iOS (Mobile & iPad) Android (Mobile & Tablets) 30 Languages SUPPORTING PROPRIETARY TECHNOLOGIES CRM Marketing Machine Retention Machine Localisation Cashier Risk Management Education 15
Slide 16: Market positions
MARKET POSITIONS LEADING INDUSTRY POSITIONS EVOLVING MARKET CUSTOMER IN CORE OTC MARKETS IN EUROPE POSITION IN THE US FEEDBACK FUTURES MARKET OTC Market Share1 (%) 18% Developing position as market infrastructure “Excellent platform No.1 16% to trade CFDs, provider provider helpful staff, never had
Slide 17: Marketing investment
MARKETING INVESTMENT Cumulative average revenue per OTC Active Customer over time Targeted, efficient online $5,500 marketing initiatives $5,000 driven by Plus500's $4,500 proprietary technology $4,000 2015 2016 $3,500 2017 $3,000 2018 $2,500 2019 Supported by investment 2020 $2,000 in advertising c
Slide 18: Plus500's long term customer loyalty and relationships
PLUS500’S LONG TERM CUSTOMER LOYALTY AND RELATIONSHIPS 8% 4% 11% 11% 6% 4% 3% 14% 16% 17% 24% 10% Significant increase in 12% 23% 16% 16% 28% longevity of Plus500’s 24% 19% customer base since 2017: 73% 73% 66% 79% 16% 87% OTC customers trading 47% with Plus500 for >1 year 53% 44% 46% 28% (% of tota
Slide 19: High return on marketing investment
HIGH RETURN ON MARKETING INVESTMENT Cumulative Return from OTC Registrations ($m) 2018 REGISTRATIONS AND 2019 REGISTRATIONS AND 2020 REGISTRATIONS AND 2021 REGISTRATIONS AND CUMULATIVE RETURNS CUMULATIVE RETURNS CUMULATIVE RETURNS CUMULATIVE RETURNS Cumulative cohort revenue Cumulative cohort revenu
Slide 20: Plus500's portfolio of international licences continues to grow
PLUS500’S PORTFOLIO OF INTERNATIONAL LICENCES CONTINUES TO GROW United Kingdom Australia South Africa New Zealand USA Jul 2021 Japan Mar 2022 Up to FY 2019 Cyprus Singapore Israel Seychelles Estonia UAE Jan 2020 Feb 2022 Feb 2023 20
Slide 21: Financial Overview
FINANCIAL OVERVIEW * Plus500 I7'S TRADING WITH A PLUS
Slide 22: Income statement
INCOME STATEMENT FY 2022 FY 2021 % Change Revenue 832.6 718.7 16% Excellent top line performance Selling and Marketing Expenses 302.1 279.8 8% supported by consistent Customer Administrative and General Expenses 80.1 54.3 48% Income¹ throughout the year EBITDA 453.8 387.1 17% EBITDA Margin 55% 54% 2
Slide 23: Cost profile
COST PROFILE FY 2022 FY 2021 % Change Other Costs Continued high levels of Advertising, technology and 157.8 172.1 (8%) including US operation related marketing investment marketing investment expenses and one time brand To drive high potential levels campaign related costs of returns over time Comm
Slide 24: Balance sheet
BALANCE SHEET FY 2022 FY 2021 % Change FY 2022 FY 2021 % Change Cash and Cash Equivalents 930.2 749.5 24% Current Liabilities 219.0 157.0 39% Other Current Assets 27.1 32.7 (17%) Non Current Liabilities 10.5 4.5 133% Total Current Assets 957.3 782.2 22% Total Liabilities 229.5 161.5 42% Non Current
Slide 25: Cash flow
CASH FLOW OPERATING ACTIVITIES: FY 2022 FY 2021 % Change Continued increase in cash Cash generated from operations 506.8 383.0 32% balances to $930.2m at year end Interest received, net 13.5 6.2 118% Driven by strong cash generation Income tax received (paid), net (66.2) 16.3 (506%) Net cash provide
Slide 26: Our approach to capital allocation
OUR APPROACH TO CAPITAL ALLOCATION REQUIRED REGULATORY CAPITAL AND ADDITIONAL RISK MANAGEMENT CAPITAL: CURRENT SURPLUS CAPITAL: c.$550M* OF REQUIRED CAPITAL – COVERING: UP TO c.$380M* TO BE INVESTED IN: Regulatory Capital Growth Opportunities Through organic investments and targeting additional Work
Slide 27: Our approach to shareholder returns
OUR APPROACH TO SHAREHOLDER RETURNS Shareholder returns policy: SINCE 2013 FY 2022 At least 50% of net profits will SHAREHOLDER RETURNS $1.7bn SHAREHOLDER RETURNS $270.2m continue to be paid to shareholders through share buybacks and $2.3bn $370.4m dividends on a half-yearly basis At least 50% of sh
Slide 28: Outlook
12 OUTLOOK * Plus500 I7'S TRADING WITH A PLUS
Slide 29: Outlook
OUTLOOK OUTLOOK FY 2023 GUIDANCE Based on Plus500’s significant progress over For FY 2023, the Board expects recent years, the Board remains confident Plus500’s performance to be in line about the Group’s future prospects with current market expectations¹ Plus500 remains well positioned to access a
Slide 30: Q&A
Ti Q&A * Pltus500 11T’S TRADING WITH A PLUS
Slide 31: Disclaimer
DISCLAIMER The Presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any The Company does not accept any responsibility for the accuracy or completeness of any information reported by offer to purchase or subscribe for, any shares or other
Slide 32: Thank you
THANK YOU LJ Plus500 IT'S TRADING WITH A PLUS