Flatexdegiro Se · XETR:FTK
Flatexdegiro — Q4 2022 Earnings Presentation
41 slides from Flatexdegiro's earnings presentation, Feb 28, 2023
Slide 1: Preliminary results 2022
56 flatexDEGIRO AG | 28 February 2023 Preliminary results 2022
Slide 2: Disclaimer
flatexDEGIRO Preliminary results 2022 Disclaimer Preliminary results 2022 This release contains preliminary information that is subject to change and that is not intended to be complete. Non-IFRS measures (APMs) This presentation includes non-IFRS measures, including Adjusted EBITDA. These measures
Slide 3: Agenda
flatexDEGIRO Preliminary results 2022 Agenda Update BaFin Audit Preliminary Results 2022 Strategic direction Guidance 2023 2
Slide 4: Update BaFin Audit
Update BaFin Audit 2 1
Slide 5: Final BaFin announcement with no surprises
flatexDEGIRO Preliminary results 2022 Processing of BaFin findings fully on schedule 1 Final BaFin announcement with no surprises publication corresponds to our proactive communication on 3 December 202 audit complete special representative allows BaFin to adjust measures in a timely manne misdemean
Slide 6: Preliminary Results 2022
Preliminary Results 2022 1 4
Slide 7: Highlights
flatexDEGIRO Preliminary results 2022 Highlights Resilient operating and financial performance in challenging environment Business focus increased Corporate governance strengthened 6
Slide 8: High level financial overview
flatexDEGIRO Preliminary results 2022 High level financial overview Revenues (m EUR) EBITDA and Adjusted* EBITDA (m EUR) Net income and Adj.* Net income (m EUR) 183 177 418 407 incl. release of 106 SARs provisions 145 97 Adj.* Revenues 369 79 114 112 261 98 53 52 50 132 38 38 15 15 2019 2020 2021 20
Slide 9: Commercial performance
flatexDEGIRO Preliminary results 2022 Commercial performance Gross customer additions (k) Assets under Custody (bn EUR) Transactions (m) 800 91 43.9 39.5 75 67 574 31.8 462 14.6 31 227 2019* 2020* 2021 2022 2019 2020 2021 2022 2019* 2020* 2021 2022 * pro forma, FY inclusion of DEGIRO 8
Slide 10: Business focus increased
flatexDEGIRO Preliminary results 2022 Business focus increased Focus on Online Brokerage offboarding of B2B customers Drive profitable growth Brand migration Austria & Netherland Closure Norway & Hungary Reduce complexity Dropping non-strategic, small alternative finance business (factoring, footbal
Slide 11: Corporate Governance strengthened
flatexDEGIRO Preliminary results 2022 Corporate Governance strengthened Supervisory Board Martin Korbmacher Stefan Müller Aygül Özkan Herbert Seuling Chair Deputy Chair Member Member Management Board Once regulatory requirements are fulfilled Frank Niehage, LL.M. Muhamad Said Chahrour Dr. Benon Jano
Slide 12: MorningStar/Sustainalytics ESG Risk Rating
flatexDEGIRO Preliminary results 2022 MorningStar/Sustainalytics Company EGS Risk Rating* (lower score is better) ESG RISK RATING - 18.7 LOW Company Risk Classification Score Fineco Low 13.2 Negl Low Med High Severe flatexDEGIRO Low 18.7 EXPOSURE - MEDIUM MANAGEMENT - STRONG Hargreaves Lansdown Medi
Slide 13: Financial details
flatexDEGIRO Preliminary results 2022 Financial details Industry-wide low trading activity Customer growth, better monetarization and cost disciplin First positive impact from Contineous net cash inflows higher interest rates 12
Slide 14: Revenue bridge 2022
flatexDEGIRO Preliminary results 2022 Revenue bridge 2022 -12% -3% € 417m € 38m € 407m € 25m € 369m € 72m € 272m Revenues Commission Interest Other Income Adjusted Adjustments* Revenues 2021 Income Income (regular) Revenues 2022 2022 2022 2022 2022 2022 * Adjustments for long-term variable compensat
Slide 15: Lower trading activity across the industry
flatexDEGIRO Preliminary results 2022 Lower trading activity across the industry DARTs* per customer account 0,20 0,16 0,12 0,08 flatexDEGIRO 0,04 Nordnet Fineco Avanza 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 * Nordnet, Avanza: based on Monthly statistics published by the companies
Slide 16: Dampening of market sentiment after Q1/22..
flatexDEGIRO Preliminary results 2022 Dampening of market sentiment after Q1/22.. Settled transactions in m 21.9 19.8 16.2 15.3 13.6 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 15
Slide 17: ..reflected in gross customer growth as well.
flatexDEGIRO Preliminary results 2022 ..reflected in gross customer growth as well. Additional customer accounts (gross) in k 185 141 97 94 86 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022: +462k 16
Slide 18: Customer growth & retention 2022
flatexDEGIRO Preliminary results 2022 Customer growth & retention 2022 Additional customer accounts 2022 in k 462 -53 409 Retention rate -73 Peer average 362 of 90k p.a. 97.8% 336 117 Avanza Core 107 Nordnet Growth 80 Hargreaves Lansdown 59 Research Fineco Customer account Churn Customer Organizatio
Slide 19: Commission per Transaction
flatexDEGIRO Preliminary results 2022 Share of “High revenue Commission per Transaction Transactions” (Cash products, incl. stocks, bonds, etc.) 85% € 4.26 € 3.90 € 3.55 75% 71% Ø Commission per Transaction 2021: € 3.73 Ø Commission per Transaction 2022: € 4.06 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 202
Slide 20: EBITDA bridge 2022
flatexDEGIRO Preliminary results 2022 EBITDA bridge 2022 -18% € 183m € 177m - € 38m € 65m € 145m € 112m EBITDA 2021 Adjustments* Adj. EBITDA 2021 EBITDA 2022 Adjustments* Adj. EBITDA 2022 2021 2022 * Adjustment in personnel expenses (+) / revenues (-) for long-term variable compensation (building or
Slide 21: Marketing aligned with market environment
flatexDEGIRO Preliminary results 2022 Documentary Marketing aligned with market environment (“True Stories of Investing”) and increased brand awareness campaigns Marketing expenses per quarter in € m 18.4 17.4 12.6 10.8 9.5 9.1 9.5 8.8 8.4 6.8 6.4 6.6 5.5 4.0 2.6 2.6 2019 2020 2021 2022 Q1 Q2 Q3 Q4
Slide 22: Raised brand awareness across all key markets
flatexDEGIRO Preliminary results 2022 Raised brand awareness across all key markets Aided brand awareness 50% 40% 30% 20% 10% 0% France Italy Spain Germany Portugal Austria Netherlands end 2021 end 2022 flatex / DEGIRO 21
Slide 23: Development of Assets under Custody
flatexDEGIRO Preliminary results 2022 Development of Assets under Custody Assets under custody in € bn 43.8 43.1 39.5 38.1 37.5 Securities: Securities: Securities: Securities: Securities: 41.0 39.8 34.9 34.0 36.2 Cash: 2.8 Cash: 3.3 Cash: 3.2 Cash: 3.5 Cash: 3.2 Dec 21 Mar 22 Jun 22 Sep 22 Dec 22 22
Slide 24: Net cash inflows of € 5.9 bn, of which 90% invested
flatexDEGIRO Preliminary results 2022 Net cash inflows of € 5.9 bn, of which 90% invested Positive monthly inflows continuing despite ECB rate increases in € bn 13.4 -7.5 90% of net cash inflows got re-invested 5.9 5.2 -0.2 0.4 Cash inflows Cash outflows Net cash Net investments Delta Delta Cash 202
Slide 25: Strategic direction
Strategic direction 1 4
Slide 26: Strategic focus on High-Profitability Growth
flatexDEGIRO Preliminary results 2022 Strategic focus on High-Profitability Growth Growing 1.5-2x above marke Mature in corporate evolutio Leverage unique geographical Utilize high operating leverage footprin Sustainable Optimize product & pricing strategy Margin Customer expansion Growth Reduction
Slide 27: High-quality customer growth
flatexDEGIRO Preliminary results 2022 High-quality customer growth Platform – Product – Price Pan-Europe‘s best investing platform 26
Slide 28: Targeted Marketing
flatexDEGIRO Preliminary results 2022 Targeted Marketing Discontinue “main sponsorship” at Sevilla and switch to Co-Sponsorship at Gladbach in 2024 Leverage data & analytics to improve conversion 27
Slide 29: Leverage Europe
flatexDEGIRO Preliminary results 2022 Leverage Europe Grow 1.5x to 2x over peers Take market share from incumbents 28
Slide 30: Profitability growth
flatexDEGIRO Preliminary results 2022 Profitability growth Improve margins & shareholder value Best-in-market investing experience 29
Slide 31: Trading Activity
flatexDEGIRO Preliminary results 2022 Unilever Trading YTD 1D 1W 1M 3M 6M 1Y 3Y 5Y ALL Activity Dividends Earnings Yield: 3,99% Order Next: book 26/07/2022 Dividend: 0,4268 Size Bid (€) Ask (€) Size Financials R Ex-Dividend: 19/05/2022 1 156 80,06 80,06 156 1 Payment: 16/06/2022 8 210 80,04 80,04 21
Slide 32: Increasing Transparency
flatexDEGIRO Preliminary results 2022 Increasing Transparency Monthly Commercial KPIs Customers / Transactions / AuC 31
Slide 33: Monthly Commercial KPI – January 2023
flatexDEGIRO Preliminary results 2022 Monthly Commercial KPI – January 2023 32
Slide 34: Guidance 2023
Guidance 2023 1 4
Slide 35: Revenue Guidance – Commission Income
flatexDEGIRO Preliminary results 2022 Revenue Guidance – Commission Income 1 2 3 4 5 Commission Income ~ € 265 m Trading activity assumed to be on Q2-Q4 2022 levels (~ 26 transactions/customer annualized Support from customer growth 65 m transactions (+/-) assumed EUR 4.10 commission per transaction
Slide 36: Revenue Guidance – Interest Income
flatexDEGIRO Preliminary results 2022 Revenue Guidance – Interest Income 1 2 3 4 5 Margin Loans assumed at EUR 900 Commission Income ~ € 265 m Expected average yield: 4.0 % Interest Income € ~100 m EUR 36 m interest income (Margin Loans) Treasury portfolio assumed at EUR 2.5 b Expected average yield
Slide 37: Revenue Guidance – Other Income
flatexDEGIRO Preliminary results 2022 Revenue Guidance – Other Income 1 2 3 4 5 Other Income expected: € 15 m Commission Income ~ € 265 m Interest Income € ~100 m EUR 380 m total revenues Other Income € ~ 15 m Total revenues € 380 m Raw materials and consumables (COGS) COGS 17-19% of 17-19 % 36
Slide 38: Opex Guidance
flatexDEGIRO Preliminary results 2022 Opex Guidance 1 2 3 4 5 Commission Income ~ € 265 m Personne Marketin Interest Income € ~100 m General Admin Other Income € ~ 15 m EUR 150-160 m Operating Expenses (Opex) Total revenues € 380 m COGS 17-19% Opex € 150-160 m 37
Slide 39: Margin Guidance
flatexDEGIRO Preliminary results 2022 Margin Guidance 1 2 3 4 5 Adj. EBITDA margin > 40 % Commission Income ~ € 265 m Adj. EBT margin > 30 % Interest Income € ~100 m Other Income € ~ 15 m Adjustments refer to building/releasing Total revenues € 380 m provisions for long-term variable compensation (S
Slide 40: Preliminary results 2022
56 flatexDEGIRO AG | 28 February 2023 Preliminary results 2022
Slide 41: Contact
97 Contact Achim Schreck flatexDEGIRO AG Head of IR and Corporate Communications Mobile: +49 160 9277 4570 Address: Omniturm, Große Gallusstraße 16-18 60312 Frankfurt/Main, Germany Phone: +49 69 4500 01 1700 Mail: achim.schreck@flatexdegiro.com Website: www.flatexdegiro.com flatexDEGIRO AG Prelimina