Smartbroker Holding Ag · XETR:SB1
Smartbroker — wallstreet:online — Shareholder Meeting (June 2022)
33 slides from Smartbroker's shareholder meeting presentation, Jun 24, 2022
Slide 1: Annual General Meeting
Annual General Meeting 24 June 2022 This translation is furnished for information purposes only. The original German version is binding.
Slide 2: Redefining Digital Investing
2 Redefining Digital Investing wallstreet:online Offers a Comprehensive Digital Finance and Investment Platform for Private Investors Media Transaction: Smartbroker The largest publisher-independent financial portal operator WSO operates the largest next generation broker by Host of the largest asse
Slide 3: Highlights 2021 (1/2)
3 Highlights 2021 (1/2) Another Record Year Adds to the Group's Consistently Strong Performance ▪ New revenue record | 82% revenue growth to €51.4 million in 20211, with 63% of the growth coming from the transaction segment and 37% from the media business ▪ Doubled securities accounts and assets und
Slide 4: Highlights 2021 (2/2)
4 Highlights 2021 (2/2) Significant Progress Made in the Development of Smartbroker 2.0 & the Professionalisation of the Organisation ▪ Smartbroker 2.0 development | Kicked off internalisation of the brokerage infrastructure ▪ Applied for extension of the existing BaFin licence to cover further secu
Slide 5: Media Unit Forms Strong Revenue and Profitability Basis
5 Media Unit Forms Strong Revenue and Profitability Basis Enables the Self-Financed Development of the Smartbroker Platform Media 1998 ▪ 3.9bn page impressions 2021 69% of group ▪ 3m+ monthly active users 2018 revenues ▪ 970k registered users 2019 €35m 32% Revenues Organic 2021 revenue growth Strong
Slide 6: Initiatives 2022 to Strengthen the Further Momentum of the Media Business
6 Initiatives 2022 to Strengthen the Further Momentum of the Media Business ▪ New paid-services & video editorial team starting in Q3 2022 ▪ The newly created wallstreet:online Publishing GmbH bundles all of the group’s journalistic offerings ▪ Introduction of the Community Stream at wallstreet:onli
Slide 7: Operational KPIs 2021
7 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 2020
Slide 8: 2021 Pro Forma Group Revenue
8 2021 Pro Forma Group Revenue 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 2021 2021: Pro forma figures based on the management information system, wallstreet:online capit
Slide 9: 2021 Pro Forma Group Profitability
9 2021 Pro Forma Group Profitability Targeted Investment Enabled the Creation of >120,000 New Securities Accounts 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
Slide 10: Guidance 2022
10 Guidance 2022 25% Revenue Growth at ~55k New Securities Accounts in 2022 Revenues, in €m Operational EBITDA before and after Business KPIs – Budget 2022 Smartbroker CAC, in €m 62 - 67 CAC Op. EBITDA 16 - 18 +25% 17.5 300,000 brokerage accounts 51.4 by the end of 2022 12,0 +22% growth compared to
Slide 11: Market & Competition
11 Market & Competition 28m Securities Accounts in Germany Smartbroker is the Only Full-Service Broker with €0 fees
Slide 12: German Households' Financial Assets Grow by 6% p.a.
12 German Households’ Financial Assets Grow by 6% p.a. Investments in Listed Equities & Funds Growing at Double this Rate Total financial assets of German households, in €bn, 2021E Neo brokers & robo advisor | 30 c. 35% +6% CAGR +12% CAGR 1st Gen online banks 35% market share & brokers | 350 20% wit
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 Total financial assets of German households, in €bn, 2021E TARGET MARKET Neo brokers & ▪ Combination of lowest fees and robo advisor | 30 comprehensive product offering enables +
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: Smartbroker
15 Smartbroker Germany‘s Leading Next Generation Broker by Assets under Custody
Slide 16: Award-Winning Neo Broker for Private Investors & Savers
16 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 ▪ Permanently from €0 transaction fees ▪ Zero securities account fee, free savings plans ▪ Virtually all funds wit
Slide 17: Award-winning Next Generation Broker
17 Award-winning Next Generation Broker ▪ Smartbroker received the rating "Very Good" in the Handelsblatt ranking of the best online brokers 2022 ▪ In the current Zertifikate Awards, Smartbroker took 3rd place among the best online brokers in the readers’ choice ranking 2021 / 2022 ▪ Smartbroker ran
Slide 18: Smartbroker Status Quo
18 Smartbroker Status Quo Current Cooperation with Partner Bank is Limiting Further Growth ▪ 200,000 securities accounts (as of year-end 2021) ▪ Existing, successful cooperation model, however with → Fixed margin per trade – no scalability → Restrictions regarding product development → Dependency (e
Slide 19: Smartbroker 2.0 Creates Scalability & Innovation Power
19 Smartbroker 2.0 Creates Scalability & Innovation Power Extended Licence | Own Platform | Own Technology STATUS QUO 2.0 Referring accounts to partner bank Own brokerage infrastructure Limited marketing capabilities No limitations Web interface only Mobile app & own, new web interface Fixed margin
Slide 20: Unique Foundation for Smartbroker 2.0
20 Unique Foundation for Smartbroker 2.0 Linking Information And Transaction Min. Only 40% reach Full-Service among the execution-only investors in Online Broker German-speaking Europe with €0 fees Reach based on estimated 5m execution-only investors in 2021, source: Oliver Wyman 2021
Slide 21: Timeline for the Implementation of Smartbroker 2.0
21 Timeline for the Implementation of Smartbroker 2.0 To be Launched in H2 2022 Mid 2021 ▪ Application for BaFin licence extension submitted ▪ Kicked-off development of own technology platform Mid 2022 ▪ Name change of wallstreet:online AG to Smartbroker Holding AG H2 2022 ▪ Smartbroker 2.0 launch ▪
Slide 22: Smartbroker 2.0
22 Smartbroker 2.0 Brand New Customer Experience & State-of-the-Art Functionality Comprehensive product as per Smartbroker standard ▪ All shares, all ETFs, all funds, all derivatives, all stock exchanges PLUS important additions & innovations ▪ Smartbroker app & new web interface ▪ New products: e.
Slide 23: Commercial Impact of Smartbroker 2.0
23 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 24: Case Study 2026
24 Case Study 2026 Smartbroker 2.0 Unfolds its Potential
Slide 25: Case Study 2026 – Intro
25 Case Study 2026 – Intro Uncertainties and risks associated with the Case Study 2026 1. New products – no prior experience ▪ Own trading app ▪ Crypto trading ▪ CFD business ▪ Placements business 2. External factors, outside the Company‘s influence ▪ Granting of BaFin licence ▪ Changes in the regul
Slide 26: Case Study 2026
26 Case Study 2026 Example: New Customer Development at 75k New Accounts p.a. Securities accounts, in k Assets under custody, in €bn +19% CAGR ´22B - ´26C 600 525 +9% 2.0 CAGR ´22B - ´26C Launch & Migration 450 14.5 13.6 375 12.6 300 10.3 10.5 8.8 246 117 4.3 2020 2021 2022B 2023C 2024C 2025C 2026C
Slide 27: Case Study 2026
27 Case Study 2026 Scalable Business Model Enables Profitable Growth Revenues, in €m +26% CAGR ´22B - ´26C 163 148 126 Assumptions 93 ▪ 75k new Smartbroker accounts p.a. 62 - 67 51 ▪ ~30 trades p.a. per account 28 ▪ 3% yearly growth for the media segment 2020 2021 2022B 2023C 2024C 2025C 2026C B: bu
Slide 28: Case Study 2026
28 Case Study 2026 Scalable Business Model Enables Profitable Growth EBITDA after client acquisition cost, in €m +53% 61 CAGR ´22B - ´26C 52 37 Assumptions ▪ 75k new Smartbroker accounts p.a. 17 ▪ ~30 trades p.a. per account 10 - 12 ▪ 3% yearly growth for the media segment 4 4 2020 2021 2022B 2023C
Slide 29: Case Study 2026
29 Case Study 2026 600k Accounts in 2026 - Number of Transaction as an Important Growth Driver Exemplary calculation Case Study 2026, based on the current avg. number of Cases calculated annual transactions per depot (~30 transactions) without interest income = further upside 186 163 140 28% EBITDA
Slide 30: Future Success Factors
30 Future Success Factors Price Leadership Product Leadership Low & decreasing costs per trade All stock exchanges, all important thanks to modern setup asset classes combined in one product Efficiency Innovation Efficient online marketing Connecting information & Utilisation of the reach of own med
Slide 31: Case Study 2026
31 Case Study 2026 Significant Further Growth Opportunities Not Modelled in the Above Case Priority 1 ▪ Extended integration between Smartbroker & media portals | Optimised data analysis & cross-selling B2B ▪ Interest income ▪ B2B offer | Various cooperation possibilities in white label format Prior
Slide 32: Long-term Value Creation for All Stakeholders is at the Heart of our Corporate Strategy
32 Long-term Value Creation for All Stakeholders is at the Heart of our Corporate Strategy Our Product Strategy Our Finance Establishing price leadership in personal investing Strategy ▪ Deliberately waiving retail fees for the benefit of our Efficient use of capital clients ▪ We are proud of our hi
Slide 33: wallstreet:online AG
33 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