Plus500 Ltd. · LSE:PLUS
Plus500 — H1 2021 Earnings Presentation
40 slides from Plus500's earnings presentation, Aug 17, 2021
Slide 1: H1 2021 Interim Results
H1 2021 Interim Results London Stock Exchange symbol: PLUS Presented by: David Zruia, Chief Executive Officer Elad Even-Chen, Chief Financial Officer 17 August 2021
Slide 2: Agenda
H1 2021 Interim Results 2 Agenda Strategic Operating Financial Outlook overview review overview
Slide 3: Strategic overview
Plué¢s500 Strategic overview oe
Slide 4: Plus500 Vision: Enabling simplified, universal access to financial markets
H1 2021 Interim Results 4 Plus500 Vision: “Enabling simplified, universal access to financial markets” Evolving into a global multi-asset fintech group Driven by continued investment to scale our technology Across devices Across countries Across financial instruments through best-in-class technology
Slide 5: Plus500 – our 8 year transformation journey
H1 2021 Interim Results 5 Plus500 – our 8 year transformation journey A solid track record built since IPO Plus500 IPO Plus500, now FTSE250 company on AIM in 2013: Continuous focus on proprietary with premium listing on LSE: H1 2013 results technology development H1 2021 results CAPITAL MARKETS: Rem
Slide 6: Plus500 – our 8 year transformation journey: delivering value for shareholders
H1 2021 Interim Results 6 Plus500 – our 8 year transformation journey Delivering value for our shareholders % 3,000 Plus500 FTSE 250 2,000 1,000 0 31/07/2013 31/07/2014 31/07/2015 31/07/2016 31/07/2017 31/07/2018 31/07/2019 31/07/2020 31/07/2021
Slide 7: Plus500 is fundamentally a technology business
H1 2021 Interim Results 7 Plus500 is fundamentally a technology business Proprietary technology powered by highly skilled people Front end and back end Systems architecture CRM Risk management technology Cashier technology Plus500 proprietary technology Automated verification Marketing technology Pl
Slide 8: Plus500 proprietary technology stack
H1 2021 Interim Results 8 Plus500 proprietary technology stack Supporting our customers at every stage of their journey Marketing Operations Product On-going Product Further Marketing Customer Payment Verification On-boarding product upgrades and products technology service processing usage improvem
Slide 9: Plus500 proprietary technology stack
H1 2021 Interim Results 9 Plus500 proprietary technology stack In-house, tailored technological solutions, equivalent to market-leading SAAS and platform offerings technology platform Marketing Operations Product For illustrative purposes only. Plus500 is not associated or connected with any of the
Slide 10: Supported by consistent approach to Risk Management and Regulation
H1 2021 Interim Results 10 Supported by consistent approach to Risk Management and Regulation Regulatory compliance and risk management embedded across our business, with 10+ years of experience Our approach to risk management: Our robust regulatory framework: Robust and comprehensive Supported by i
Slide 11: Plus500 Group's regulated operations
H1 2021 Interim Results 11 Plus500 Group’s regulated operations Robust global regulatory framework ISRAEL SECURITIES AUTHORITY Monetary Authority of Singapore London Chicago Limassol Tel Aviv Singapore Victoria Sydney FINANCIAL SERVICES AUTHORITY
Slide 12: Continued focus on Environment, Social and Governance
H1 2021 Interim Results 12 Continued focus on Environment, Social and Governance Further progress in key areas in H1 2021 Governance: Social responsibility: Continued broadening of Further focus on Continued focus on Employee welfare expertise and increasing ESG approach: customer care and and suppo
Slide 13: Excellent progress against strategic priorities in H1 2021
H1 2021 Interim Results 13 Excellent progress against strategic priorities in H1 2021 Delivering against our vision - evolving to become a global multi-asset fintech group Strategic priorities Entered US Futures Continued focus on achieved in H1 2021: and Options on organic investment and Futures ma
Slide 14: Operating review
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Slide 15: H1 2021 Results – Operational Overview
Operating review 15 H1 2021 Results – Operational Overview Significant further positive momentum delivered Significant numbers Driven by our technology platform Continuing to manage of Active Customers and operational delivery high levels of platform usage and New Customers Another very strong perio
Slide 16: H1 2021 Financial Highlights
Operating review 16 H1 2021 Financial Highlights Financial Summary Financial Performance Extremely strong performance across key financial metrics: Revenue of $346.2m, supported by high level of Customer Income H1 2021 H2 2020 % Q2 2021 Q2 2020 % EBITDA of $187.6m Revenue ($m) 346.2 308.3 12% 143.0
Slide 17: Key market trends
Operating review 17 Key market trends Plus500 well positioned to access significant market opportunities Market Technology Consumer Regulation Unprecedented Technology-focused Emerging generation On-going market environment behaviours of traders regulatory focus Major market Digital channels increas
Slide 18: Market leadership positions
Operating review 18 Market leadership Market Share (%) positions Plus500 Next largest provider Market Share in CFD Market 20% Leading industry positions in core markets for third 19% 19% year in a row: Fastest-growing trading platform in UK1 No.1 CFD provider in Germany2 17% No.1 CFD provider in Spa
Slide 19: Technology developments - product & systems
Operating review 19 Technology developments - product & systems Further progress made in H1 2021 Continued investment in product Mobile and tablet offering and systems to ensure consistent remain key customer access customer-centric approach points during H1 2021 Product Systems Revenues Trades ‘Plu
Slide 20: H1 2021 KPIs by region
Operating review 20 H1 2021 KPIs by region Excellent performance compared with H2 2020 Active % % New % % Revenue % % ARPU % Customers change proportion Customers change proportion ($m) change proportion ($) change UK 46,862 3% 14% 19,647 14% 14% 42.5 11% 12% 906 8% EEA (exc. UK) 193,398 28% 58% 79,
Slide 21: Marketing Investment
Operating review 21 Cumulative average revenue Marketing Investment per Active Customer over time Drives long term customer cohort value $5,000 $4,000 Targeted, efficient online marketing initiatives driven by Plus500 proprietary technology Sustained levels of investment in marketing technology $3,0
Slide 22: High Return on Marketing Investment
Operating review 22 Key: High Return on Marketing Investment 2021 2020 Long term revenue return consistently exceeds initial marketing investment 2019 2018 348 346 350 350 350 28 300 300 300 116 118 250 3.5 years 250 250 200 200 190 200 28 68 150 150 2.5 years 150 116 230 221 Of total registrations
Slide 23: Strong revenue stream since IPO
Operating review 23 Strong revenue stream since IPO Through periods of market movements and regulatory changes $ Customer Income per trade COVID-19 400,000 pandemic Active Customers 15.00 300,000 12.00 9.00 New ASIC regulations 200,000 Crypto implemented 6.00 boom 100,000 New ESMA 3.00 regulations i
Slide 24: On-going improvement in customer retention
Customer dynamics 24 On-going improvement Active Customers, 2014 - 2021 in customer retention 500,000 Step up in Active Customer base, through periods of intensive market activity 400,000 “Customer experience” drives retention: 300,000 Consistently high level of service delivered, despite higher vol
Slide 25: Long term customer relationships
Customer dynamics 25 Long term customer 6% 14% 14% 19% Key relationships 28% 17% 0-6 Months H1 2021 24% FY 2020 17% 7-12 Months Revenue split by Customer Tenure 1-3 Years 3-5 Years 64% 33% 66% 28% 5+ Years >1 year 11% 11% 8% 4% 12% 23% Highlights strong, long term customer retention 16% 16% FY 2019
Slide 26: Financial overview
Plué¢s500 Financial overview ©
Slide 27: A significant track record of cash generation
Strategic overview 27 A significant track record of cash generation Has enabled substantial shareholder returns since IPO Supports our balanced approach to capital allocation: $2.1 billion Shareholder returns Investment in growth: General business Cash generated from of $1.3bn since IPO continuity a
Slide 28: Income Statement
Financial overview 28 Income Statement Key Metrics ($m) Strong underlying revenue performance Driven by Customer Income of $379.2m H1 H1 % H2 % (H1 2020: $556.9m, H2 2020: $440.6m) 2021 2020 Change 2020 Change Revenue 346.2 564.2 (39%) 308.3 12% Selling and Marketing 131.4 179.4 (27%) 136.0 (3%) Dro
Slide 29: Cost profile
Financial overview 29 Cost profile 27% 73% 24% 76% Key Elements ($m) H1 2021 H2 2020 Variable* H1 H1 % H2 % 2021 2020 Change 2020 Change Fixed Advertising, technology 85.2 125.8 (32%) 95.3 (11%) and marketing investment Lean Cost Structure Processing costs 22.0 30.1 (27%) 22.9 (4%) Payroll and relat
Slide 30: Balance Sheet
Financial overview 30 Balance Sheet Key Metrics ($m) Plus500 remains debt-free H1 H1 % FY % 2021 2020 Change 2020 Change No debt on balance sheet since being established in 2008 Cash and Cash Equivalents 722.5 587.8 23% 593.9 22% Other Current Assets 35.3 14.8 139% 16.1 119% Balance Sheet further st
Slide 31: Cash Flow
Financial overview 31 Cash Flow Continued strong cash generation - operating cash conversion of 87% Key Metrics ($m) (H2 2020: 105%) Driven by EBITDA performance and Operating Activities: H1 H1 % H2 % low capital intensive nature of 2021 2020 Change 2020 Change Plus500 Cash generated from operations
Slide 32: Outlook
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Slide 33: Outlook and guidance
Delivering the future opportunity 33 Outlook and Our vision: Revenue outlook: guidance “Enabling simplified, universal access to financial markets” Significant positive momentum achieved The Board remains Evolving to a global multi-asset Board expects revenue to be fintech group significantly ahead
Slide 34: Q&A
Pluss00 Q&A
Slide 35: Appendix
Plué¢s500 Appendix
Slide 36: Plus500 as a global multi-asset fintech group
Structure of Plus500 in 5 years 36 Plus500 as a global multi-asset fintech group “Evolving from a technology company solely focused on CFDs to Fintech Group a global multi-asset fintech group” CFD offering Share dealing Futures trading New additional financial products Current New markets markets Ne
Slide 37: Active Customer and New Customer KPIs
Operating review 37 Active Customer and New Customer KPIs H1 2021 vs H1 2020 and H2 2020 Active Customers New Customers H1 21 H1 20 % change H1 21 H2 20 % change H1 21 H1 20 % change H1 21 H2 20 % change UK 46,862 54,309 (14%) 46,862 45,593 3% 19,647 35,828 (45%) 19,647 17,307 14% EEA (exc. UK) 193,
Slide 38: Revenue and ARPU
Operating review 38 Revenue and ARPU H1 2021 vs H1 2020 and H2 2020 Revenue ($m) ARPU ($) H1 21 H1 20 % change H1 21 H2 20 % change H1 21 H1 20 % change H1 21 H2 20 % change UK 42.5 71.7 (41%) 42.5 38.2 11% 906 1,321 (31%) 906 838 8% EEA (exc. UK) 159.5 254.8 (37%) 159.5 110.5 44% 825 1,398 (41%) 82
Slide 39: Active Customer and New Customer KPIs
Operating review 39 Active Customer and New Customer KPIs Q2 2021 vs Q2 2020 Active Customers New Customers Revenue ($m) ARPU ($) Q2 21 Q2 20 % change Q2 21 Q2 20 % change Q2 21 Q2 20 % change Q2 21 Q2 20 % change UK 25,879 44,630 (42%) 5,797 22,502 (74%) 17.4 28.5 (39%) 672 639 5% EEA (exc. UK) 125
Slide 40: Disclaimer
Appendices 40 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 The Company does not accept any responsibility for the accuracy or completeness of any information reported by the press purchase or subscribe f