Slide 1: Hypoport SE Results
€> HYPOPORT Hypoport SE Results
Slide 2: Our mission
Our mission Digitalisation of the credit, real-estate and insurance industries Credit industry Real-estate industry Insurance industry Hypoport SE, results Q3/23 2
Slide 3: Hypoport – a network of technology companies
Hypoport – a network of technology companies Breakdown of revenue in Q3/23 STAR- BAUFI AMEX POOL QUALITY NEX Pool GENO POOL PACE sia Insurance industry Credit industry FINMAS €16 mn SMART INSURTECH corify €39 mn EUROPACE ePension oasis funding- REM port CAPITAL VALUE AG FIO DR. KLEIN PRIVATE CLIENTS
Slide 4: Little support from sluggish markets
Little support from sluggish markets Results for Q3/23 Key figures Q3/23 on Q2/23 (qoq) Segment revenue • Revenue: €88 mn (+3%) • Credit Platform revenue: +1% • Gross profit: €51 mn (+1%) • Private Clients revenue: +4% • EBITDA: €7.6 mn (+24%) • Real Estate Platform revenue: -1% • EBIT: loss of €1.1
Slide 5: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price information & IR)
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' energy efficiency General wish for home ownership Debate about lowering real-estate transfer tax Stable birth rates Announcement of support programmes Stead
Slide 7: Potential for mortgage finance volume in housing market
Potential for mortgage finance volume in housing market Facts relating to the mortgage finance volume in the German housing market Population of 84.4 million Interest rates Rent increases at around 4% Increase of 1.5% Up by 21% Stable since (1.3 million since 2020 autumn 2022 people) since 2020 74%
Slide 8: Property purchases becoming increasingly attractive
Property purchases becoming increasingly attractive Macroeconomic factors affecting mortgage finance 5 140 Interest (debit interest rate, ten-year fixed rate, best rate) Property prices (hedonic, indexed) 4 130 3 120 2 110 1 0 100 180 130 Properties offered for sale (number, indexed) Rental supply (
Slide 9: Current market volume well below trend range
Current market volume well below trend range Volume of private mortgage finance in Germany 85 Overall market 75 Freedom of movement Market growth driven by rising for EU employees property prices; number of transactions virtually unchanged 65 Reduction in vacancies in major cities Lack of growth sti
Slide 10: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price information & IR)
Slide 11: Credit Platform
Credit Platform Business model & results STAR BAUFI POOL QUALITY NEX POOL GENO PACE Credit industry FINMAS EUROPACE FUNDING- REM PORT CAPITAL Hypoport SE, results Q3/23 11
Slide 12: Digitalisation of the credit industry
Digitalisation of the credit industry Credit Platform segment business model Consumers / Distributors Poolers B2B Product suppliers companies lending marketplace Online comparison Private sites commercial banks Other advisors EUROPACE Insurance Dr. companies Klein Quality- pool Star- pool Savings Ba
Slide 13: Positive performance in a weak market environment
Positive performance in a weak market environment Credit Platform: mortgage finance and building finance product type • Small gain in mortgage finance market share in a market that Volume of transactions (€ billion)* is expanding slightly overall (Bundesbank +1% qoq) 5-year CAGR: +15% +7% • Mortgage
Slide 14: Europace still has huge potential for growth
Europace still has huge potential for growth Mortgage finance product type: market share, by distribution channel Distribution channels and Europace's share GENOPACE (for cooperative banks)* 5-year CAGR: +60% Cooperative +19% Brokers banks 12 13 ~25–30% ~25–30% 8 2.6 3.1 1 2 4 ~60% ~25% 2017 2018 20
Slide 15: Robust growth in a stagnating market environment
Robust growth in a stagnating market environment Credit Platform: personal loans product type • Over the past five years, Europace has gained significant market Transaction volume in personal loans (€ billion)* share in the personal loans business as a B2B marketplace 5-year CAGR: +15% +0% • The exp
Slide 16: Weak market for advice on accessing funding
Weak market for advice on accessing funding Credit Platform: corporate finance product type • REM Capital had seen exceptionally strong growth until mid-2022 due Volume of new projects at REM Capital (€ billion) to attractive KfW funding schemes for energy-efficient properties • Current external fac
Slide 17: Revenue growth; disciplined approach to costs
Revenue growth; disciplined approach to costs Credit Platform: revenue, gross profit and EBIT • A further quarter-on-quarter rise in revenue in the mortgage finance Revenue (€ million) +1% business models, whereas revenue fell sharply in the corporate 38.3 38.5 finance business models • Profitabilit
Slide 18: Private Clients
Private Clients Business model & results DR. KLEIN PRIVATE CLIENTS VER- GLEICH .DE Private clients Hypoport SE, results Q3/23 18
Slide 19: Strong brand for independent advice
Strong brand for independent advice Private Clients segment business model Consumers Lead generation via… Advisors Access via… Product suppliers Private commercial Google banks Insurance Dr. Klein companies Vergleich.de EUROPACE franchise system FINMAS Savings banks DrKlein.de GENOPACE Cooperative b
Slide 20: Dr. Klein maintains its position in a weak market
Dr. Klein maintains its position in a weak market Private Clients: operational key figures Volume of new loans brokered to private clients • Sales volume increased and market share gained despite lack of (€ billion)* 5-year CAGR: +13% clarity for consumers about government support and GEG rules +7%
Slide 21: Significantly improved profitability for Dr. Klein
Significantly improved profitability for Dr. Klein Private Clients: revenue, gross profit and EBIT • Sustained market uptrend, combined with gains in market Revenue (€ million) +4% share, are more than making up for the lack of clarity about GEG rules and the government support situation, resulting
Slide 22: Real Estate Platform
Real Estate Platform Business model & results EUROPACE VALUE AG FIO DR. KLEIN WOWI PROM MISE Real-estate industry Hypoport SE, results Q3/23 22
Slide 23: Potential in the digitalisation of housing industry
Potential in the digitalisation of housing industry Market segments and solutions Owner- Private (small-scale) Institutional occupiers landlords housing companies Residential units approx. 18 million approx. 17 million approx. 7 million in Germany Property financing Hypoport Property sales platform
Slide 24: Innovation in a sluggish market
Innovation in a sluggish market Real Estate Platform: property sales platform and property management platform Property sales platform volume • Development of software solutions for the sale and management (€ billion) of residential properties in the credit and housing industries +6% • Small increas
Slide 25: Strategic changes to valuation services
Strategic changes to valuation services Real Estate Platform: property valuation platform Property valuation platform volume • The fall in mortgage finance volume and the small loans threshold (€ billion) being raised by 50% have now led to huge product shifts in the +5% property valuation market •
Slide 26: Mortgage finance market remains muted
Mortgage finance market remains muted Real Estate Platform: property financing platform for the institutional housing sector • Following rising interest rates and interest rate volatility in 2022, the Volume of new loans brokered on the property financing platform inclination of the housing industry
Slide 27: Marked decline in volume on the property financing
Marked decline in volume on the property financing Real Estate Platform: revenue, gross profit and EBIT • The market and regulatory situation led to sharp falls in Revenue (€ million) -1% revenue from property valuation, but higher revenue in other sub-segments mitigated the decrease in revenue for
Slide 28: Insurance Platform
Insurance Platform Business model & results AMEX QUALITY Pool POOL Insurance industry sia SMART INSURTECH corify ePEN- oasis SION Hypoport SE, results Q3/23 28
Slide 29: Market positioning of the companies now finalised
Market positioning of the companies now finalised Strategic positioning of the segment's portfolio Insurer Underwriting agent Marketplace Pool Broker Hypoport SE, results Q3/23 29
Slide 30: Steady increase in the platform volume
Steady increase in the platform volume Insurance Platform: private insurance portfolios • Annual net policy premiums of just under €9 billion for Private insurance portfolios (annual net policy premiums, € billion) private insurance policies are managed in the legacy systems 8.6 8.6 • Migrating thes
Slide 31: Industrial insurance now a separate business line
Industrial insurance now a separate business line Insurance Platform: industrial insurance portfolios • Strategic repositioning as a contract portfolio management Industrial insurance (annual net policy premiums, € billion) platform for the growing industrial insurance market finalised ~ 31 • Corify
Slide 32: Huge potential for digitalisation in occupational pension market
Huge potential for digitalisation in occupational pension market Insurance Platform: occupational insurance portfolios • ePension integrates all stakeholders in the occupational Annual net policy premiums on occupational insurance portfolios (€ billion) insurance market, including HR departments of
Slide 33: Progress with the strategic realignment
Progress with the strategic realignment Insurance Platform: revenue, gross profit and EBIT +14% • Volumes from additional clients signed up for SMART INSUR Revenue (€ million) and ePension in 2022 and 2023 are being steadily migrated to the platform, but the acquisition of new clients continues 14.2
Slide 34: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price information & IR)
Slide 35: Improvement in earnings compared to Q2
Improvement in earnings compared to Q2 Overview of Hypoport's key performance indicators Performance (€ million) Earnings (€ million) 85.3 88.1 6.2 7.6 Revenue +3% EBITDA +24% EBIT -1.1 -2.5 Gross -1.0 50.0 profit 50.6 EAT Q2 2023 Q3 2023 +1% -2.5 Q2/23 Q3/23 Hypoport SE, results Q3/23 35
Slide 36: Current environment offers long-term opportunities
Current environment offers long-term opportunities Long-term changes in revenue and EBITDA Established Upscaling and Qualitative growth Start-up despite fin. crisis expansion in periods of crisis Revenue (€ million) 446 455 267 4 26 98 1999 2006 2013 2021 2022 Q1–Q3 2023 EBITDA (€ million) 77 58 23
Slide 37: Costs held steady despite inflationary pressure
Costs held steady despite inflationary pressure Cost levels in the segments Personnel expenses and other operating expenses • The reduction of costs across all segments will lower (€ million) expenditure by €35–40 million in 2023 compared with 58 -14% the initial quarter, Q3 2022 (€60 million) +3% -
Slide 38: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price information & IR)
Slide 39: 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 90 ~ €75–100 billion per quarter • Persistently high net inward immigration 80 is supporting demand for housing • Current low level of new builds is not 70 politically sustai
Slide 40: For years Forecast for 2023 For many more years
For years Forecast for 2023 For many more years Hypoport has been Fall in revenue of up to 25%; Hypoport will generate generating double-digit consolidated EBIT in a range of double-digit increases in increases in revenue and €10 million to €15 million, partly market share and thus, in EBIT thanks t
Slide 41: 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 Q3/23 41
Slide 42: 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 43: Annex
Annex Hypoport SE, results Q3/23 43
Slide 44: Investment highlights
Investment highlights ~20% REVENUE GROWTH 10-year CAGR 20+ YEARS of experience with platform- based business models ~20% 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 Q3/23 44
Slide 45: Market capitalisation of just under €1 billion
Market capitalisation of just under €1 billion Shareholder structure and share information Breakdown of shareholders as at 31 October 2023 Key performance indicators KPI Details Value Ronald Slabke (CEO) Treasury shares EPS Earnings per share in Q3 2023 -€0.14 Free float (more than 5% held by Bailli
Slide 46: 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 % 650 820 620 784 590 748 560 712 530 676 500 640 470 604 440 568 410 532 380 496 350 460 320 424 388 290 352 260 316 230 280 200 244 170 208 140 172 110 136 80
Slide 47: Hypoport's investor relations activity
Hypoport's investor relations activity Investor events, professional analysts' assessments, awards Recommen- Target Recent IR events Analyst Date dation price Lyon, Frankfurt (2x), New York, Hamburg, Q1–Q3 Bankhaus Metzler Sell €97.00 20 October 2023 Conferences Munich 2023 Berenberg Buy €230.00 16
Slide 48: Mortgage finance – a high-potential market
Mortgage finance – a high-potential market Long-term factors influencing private and institutional residential mortgage finance Negative factors Positive factors Finance for • Lack of available properties • Strong pent-up demand in and from the rental market OWNER- • High ancillary purchasing costs
Slide 49: Small population increase supports demand for housing
Small population increase supports demand for housing Expected changes in population size up to 2040 86,0 Population level in the moderate planning scenario (births, life expectancy and net migration at moderate rates) 85,5 85.2 85.2 85.1 85.1 85.0 85.0 85.0 85,0 84.9 84.8 84.6 84.5 84,5 84.2 84,0 2
Slide 50: High amount of refinancing from 2027 ongoing
High amount of refinancing from 2027 ongoing Expected volume of refinancing 2024 - 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 Sources: Bundesbank, Europace, own
Slide 51: Trigger events cause Germans to turn to financing
Trigger events cause Germans to turn to financing Factors of relevance for financing decisions Property purchase Remortgaging New builds Modernisation Type Reasons Life events Children, divorce, career Children changes Interest rates Changes in choice of Majority of loans have Minor change to locati
Slide 52: Long-term neither interest rates nor short-term political topics matter
Long-term neither interest rates nor short-term political topics matter Factors influencing demand in the German property market Factors Effects Outcome EU integration Net inward migration Economic stability Life Number of expectancy households Number of one-person Demand for households housing Lock
Slide 53: Scarce supply due to low sales volumes and limited new building
Scarce supply due to low sales volumes and limited new building Factors influencing supply in the German property market Factors Effects Outcome Life expectancy Transaction Sale of costs existing properties Alternative investment Supply of options housing Regulation New builds Limited resources (mat
Slide 54: A long-term growth market
A long-term growth market Structural factors underpinning sustained growth in the finance market Demand for Regulation of the New builds housing rental market Rental costs Excess demand Volume of property Mortgage (approx. 2 million homes) transactions finance volume Property prices Supply of Regula
Slide 55: Potential for digitalisation in the insurance market
Potential for digitalisation in the insurance market Long-term market factors Negative factors Positive factors • Established market players' legacy • Consumers have higher expectations systems are slowing the pace of regarding digitalisation digitalisation due to the lack of • Insurtech start-ups a
Slide 56: Digitalisation of the insurance industry
Digitalisation of the insurance industry Insurance Platform segment business model End customers// employees & Distributors Poolers B2B Product suppliers companies insurance platform Insur apps Insur apps Advisors in bank branches Dr. Other SMART INSUR Klein brokers Quality-/ DR. KLEIN Amex- pool In
Slide 57: Huge potential for growth in all product groups
Huge potential for growth in all product groups Market share in the three product groups Overall market in 2022: €224 billion in annual net policy premiums written ~ 173 164.4 ~ 31 20.3 8.6 2.1 28.9 0.2 20.1 Private insurance companies Industrial insurance companies Occupational insurance schemes Us