Hypoport Se · XETR:HYQ
Hypoport — Q4 2023 Earnings Presentation
41 slides from Hypoport's earnings presentation, Mar 14, 2024
Slide 1: Hypoport SE Results for Q4 2023
Hypoport SE Results for Q4 2023
Slide 2: Digitalisation of the credit, real estate and insurance industries
Digitalisation of the credit, real estate and insurance industries Hypoport – Our mission for our segments Real Estate & Financing Mortgage Platforms Platforms Insurance Platforms Hypoport SE, results Q4/23 2
Slide 3: Little support from sluggish markets
Little support from sluggish markets Results for Q4 2023 Key figures for Q4 2023 (yoy change)* Segment revenue in Q4 2023 (yoy change) • Revenue: €93 million (+5%) • Real Estate & Mortgage: €54 million (+0%) • Gross profit: €55 million (+1%) • Financing: €20 million (+15%) • EBITDA: €27.9 million (+
Slide 4: Contents
Contents 1. Summary 2. Key performance indicators for the segments 3. Key performance indicators for the Group 4. Outlook Annex (incl. share price information & IR)
Slide 5: Real Estate & Mortgage Platforms
Real Estate & Mortgage Platforms Business model & results Marketing Finance Real Estate & (sales) Mortgage Platforms Finance (platform) Valuation Hypoport SE, results Q4/23 5
Slide 6: Further improvement in factors driving decision to buy
Further improvement in factors driving decision to buy Key factors driving the decision to buy and their macro-drivers Regulation of buildings’ Growing desire for home ownership energy efficiency Debate about lowering Family planning continues to be real-estate transfer tax the primary trigger event
Slide 7: Property purchases becoming increasingly attractive
Property purchases becoming increasingly attractive Macroeconomic factors affecting mortgage finance 5 140 Interest (ten-year fixed rate, Dr. Klein best interest rate) Property prices (EPX hedonic, indexed) 4 130 3 New builds 120 2 Existing Homes 110 1 Flats 0 100 260 130 240 Properties offered for
Slide 8: Market volume still well below trend range
Market volume still well below trend range Volume of private mortgage finance in Germany 85 Overall market 75 Market growth driven by rising Freedom of movement property prices; number of for EU employees transactions virtually unchanged 65 Reduction in vacancies in major cities Lack of growth stimu
Slide 9: Digitalisation of private residential property purchases
Digitalisation of private residential property purchases Real Estate & Mortgage Platforms (RE&M) business model SaaS Distribution of B2B lending Property Consumers Poolers Product suppliers brokers financial products marketplace valuation Online comparison Private sites commercial Other banks adviso
Slide 10: Positive performance in a weak market environment
Positive performance in a weak market environment RE&M: volume of mortgage finance transactions* Europace total Finmas (savings banks) (€ billion) (€ billion) 85 +8% +40% 73 77 54 52 10 12 13 8 9 6 7 1.3 1.8 2019 2020 2021 2022 2023 Q4/22 Q4/23 2019 2020 2021 2022 2023 Q4/22 Q4/23 Dr. Klein Privatku
Slide 11: Exceptionally sharp fall in new builds and refinance
Exceptionally sharp fall in new builds and refinance Europace: mortgage finance volume* by purpose 30 1.0 25 5 0.8 0.8 1.0 0.8 20 0.7 3 0.8 3 0.7 3 3 8 4 3 0.6 3 0.5 6 15 0.5 3 3 6 0.8 0.4 5 6 5 5 2 2 5 0.7 0.4 2 0.6 0.7 1 0.5 0.4 2 4 0.6 1 1 1 2 4 3 2 10 3 1 2 2 3 2 3 2 3 14 13 12 11 11 11 11 11 5
Slide 12: Europace still has huge potential for growth
Europace still has huge potential for growth Europace: mortgage finance market share by distribution channel Cooperative Brokers banks ~25–30% ~25–30% ~60% ~25% ~40% ~15% Private commercial Savings banks banks ~25–30% ~15% Mortgage finance in Germany in Q4 2023: €39 billion Mortgage finance via Euro
Slide 13: Strategic repositioning in response to changes in the market
Strategic repositioning in response to changes in the market RE&M: property valuation (Value AG) Revenue from property valuation • Fall in mortgage finance volume and raising of the small (€ million) loans threshold trigger massive product shifts -17% • Mismatch with high-quality supply is being add
Slide 14: Modest revenue growth & disciplined cost approach
Modest revenue growth & disciplined cost approach Key figures for the Real Estate & Mortgage Platforms segment • Continued revenue growth in mortgage finance and marketing is Revenue (€ million) +0% being eroded by a marked decline in property valuation revenue 54.2 54.3 • Business models outside th
Slide 15: Financing Platforms
Financing Platforms Business model & results Housing sector Corporate finance Financing Platforms Personal loans Hypoport SE, results Q4/23 15
Slide 16: Success in a sluggish market environment
Success in a sluggish market environment Housing sector: key figures for Dr. Klein Wowi Rental deposits under management Number of units managed through ERP (thousand) (€ billion) +62% +8% 302 302 1.03 1.09 1.03 1.09 0.90 0.95 1.00 65 187 187 47 103 2019 2020 2021 2022 2023 Q4/22 Q4/23 2019 2020 202
Slide 17: Strong final quarter of 2023 for SMEs
Strong final quarter of 2023 for SMEs Corporate finance: key figures for REM Capital • Climate change mitigation and energy costs are important Volume of new projects at REM Capital (€ billion) topics for German SMEs and have the potential to drive significant demand +167% • Support programmes offer
Slide 18: Robust growth in a stagnating market environment
Robust growth in a stagnating market environment Personal loans: key figures for personal loans via Europace • Slight contraction in the overall market (five-year CAGR: -3%) Volume of personal loan transactions* (€ billion) • Substantial gains in market share in the past five years +14% • Banks beco
Slide 19: Profitable growth in all three subsegments
Profitable growth in all three subsegments Key figures for the Financing Platforms segment +15% • Strong final quarter of 2023 for Hypoport’s business models Revenue (€ million) in spite of stagnating or even contracting markets 17.2 19.7 • Disproportionately strong rise in EBIT partly due to a disc
Slide 20: Insurance Platforms
Insurance Platforms Business model & results Personal insurance Occupational insurance Industrial insurance Insurance Platforms Hypoport SE, results Q4/23 20
Slide 21: Stagnating market under pressure from inflation
Stagnating market under pressure from inflation Insurance: net premiums in the insurance business in Germany 300 +2% +1% 250 -1% 222 226 223 225 217 19 20 20 19 19 200 30 31 32 34 29 150 100 169 173 175 171 172 50 0 2019 2020 2021 2022 2023 Personal insurance (life/health/general insurance) Industri
Slide 22: Digitalisation of the insurance industry
Digitalisation of the insurance industry Insurance Platform segment business model End customers // B2B employees & Distributors Poolers Underwriting agent Product suppliers insurance platform companies Insur apps Insur apps Advisors in bank branches Sia Dr. Other SMART INSUR Klein brokers Quality-/
Slide 23: Progress with migration to platforms
Progress with migration to platforms Insurance Platforms: assets under management on the platforms SMART INSUR – personal insurance (€ billion) ePension – occupational insurance (€ billion) +9% +42% 4.1 3.8 4.1 3.4 3.8 2.5 2.8 0.05 0.06 0.10 0.15 0.21 0.15 0.21 2019 2020 2021 2022 2023 Q4/22 Q4/23 2
Slide 24: Successful turnaround
Successful turnaround Key figures for the Insurance Platforms segment +7% • Growth rate of the overall insurance market has been Revenue (€ million) lower than inflation for years 16.9 18.1 • Marked improvement in EBIT thanks to cost reductions • Segment forecast for 2024: slight revenue and EBIT gr
Slide 25: Contents
Contents 1. Summary 2. Key performance indicators for the segments 3. Key performance indicators for the Group 4. Outlook Annex (incl. share price information & IR)
Slide 26: Costs held almost steady despite inflationary pressure
Costs held almost steady despite inflationary pressure Cost levels in the segments Personnel expenses and other operating expenses • Costs reduced by around €35 million in 2023 compared (€ million) with the reference quarter of Q3 2022 (€60 million) 59 -16% • The cost reduction is even more pronounc
Slide 27: Strong improvement in earnings in Q4
Strong improvement in earnings in Q4 Overview of Hypoport’s performance Gross profit & revenue (€ million) EBIT (€ million) 455 88 94 -46% 360 Revenue Revenue -21% +5% 24.7 16.2 Gross Gross 13.3 Q4/22 261 Profit 208 55 Profit 55 -20% +1% 2022 2023 -6.3 Q4/23 2022 2023 Q4/22 Q4/23 EBITDA (€ million)
Slide 28: Current environment offers significant long-term opportunities
Current environment offers significant long-term opportunities Long-term changes in revenue and EBITDA Established Upscaling & Qualitative growth Start-up despite fin. crisis expansion in periods of crisis Revenue (€ million) 455 360 446 4 26 98 1999 2006 2013 2021 2022 2023 EBITDA (€ million) 51 77
Slide 29: Contents
Contents 1. Summary 2. Key performance indicators for the segments 3. Key performance indicators for the Group 4. Outlook Annex (incl. share price information & IR)
Slide 30: Home ownership is a long-term growth market
Home ownership is a long-term growth market Primary trends driving demand for mortgage finance 100 202X: market of the future ~ €75–100 billion per quarter 90 • Persistently high net inward migration is supporting demand for housing 80 • Current low level of new builds is not politically sustainable
Slide 31: Positive scaling with market recovery
Positive scaling with market recovery Segment outlook for 2024 Real Estate & Mortgage Financing Platforms Insurance Platforms Platforms Market environment Revenue EBIT Hypoport SE, results Q4/23 31
Slide 32: Forecast for 2024
For years Forecast for 2024 For many more years Hypoport has been Double-digit percentage increase Hypoport will generate generating double-digit in revenue to at least €400 double-digit increases in increases in market share million and EBIT of between €10 market share and thus, in and thus, in nor
Slide 33: Contact
Contact Jan H. Pahl Hypoport SE Head of Investor Relations Heidestrasse 8 Tel: +49 (0)30 420 86 1942 10557 Berlin Email: ir(at)hypoport.de Germany Click here to subscribe to the IR mailing list (German only) Click here to subscribe to the IR mailing list (English) Hypoport SE, results Q4/23 33
Slide 34: Disclaimer
Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice and perform their own analysis regarding the appropriateness of investing in any of our securities. While Hyp
Slide 35: Annex
Annex Hypoport SE, results Q4/23 35
Slide 36: Investment highlights
Investment highlights ~15% REVENUE GROWTH 10-year CAGR 20+ YEARS of experience with platform- based business models ~15% EBIT INCREASE 10-year CAGR 88% OUR EMPLOYEES are satisfied or even extremely satisfied with 15+ ACQUISITIONS Hypoport as an employer in 10 years Hypoport SE, results Q4/23 36
Slide 37: Market capitalisation of more than €1 billion
Market capitalisation of more than €1 billion Shareholder structure and share information Breakdown of shareholders as at 29 February 2024 Key performance indicators KPI Details Value Ronald Slabke (CEO) Treasury shares Number of Total number of shares 6,872,164 Free float shares (of which more than
Slide 38: Share price performance superior to indices
Share price performance superior to indices Share price since the date of joining the SDAX (daily closing price, Xetra, €) € HYQ SDAX MDAX % 650 550 704 450 576 350 448 250 320 150 192 50 64 JanDec Apr Apr Apr Apr Apr Apr Apr Apr Apr Jan Jan Jul Oct Oct Jul Jul Jul Jul Jul Jul Jul Jul Oct Oct Oct Oc
Slide 39: Hypoport's investor relations activity
Hypoport’s investor relations activity Investor events, professional analysts’ assessments, awards Recommendat Target Recent IR events Analyst Date ion price Frankfurt (3x), Hamburg, London, Lyon, Conferences 2023 Bankhaus Metzler Sell €125.00 23 January 2024 Munich (2x), New York, Paris Berenberg B
Slide 40: Wave of remortgaging set to begin in 2027 is gathering strength
Wave of remortgaging set to begin in 2027 is gathering strength Expected volume of remortgaging in the period 2024 to 2030 120 Remaining volume at end of 15-year fixed interest rate Remaining volume at end of 10-year fixed interest rate 80 40 0 2030 2024 2025 2026 2027 2028 2029 2031 2032 2033 2034
Slide 41: A long-term growth market
A long-term growth market Structural factors underpinning sustained growth in the finance market Regulation Demand for New builds of the rental housing market Rental costs Excess demand Volume of property Mortgage (approx. 2 million homes) transactions finance volume Property prices Regulation of Su