Plus500 Ltd. · LSE:PLUS
Plus500 — H1 2024 Earnings Presentation
47 slides from Plus500's earnings presentation, Aug 19, 2024
Slide 1: H1 2024 Interim Results
H1 2024 INTERIM RESULTS Presented by: David Zruia, Chief Executive Officer Elad Even-Chen, Chief Financial Officer 19 August 2024 London Stock Exchange symbol: PLUS
Slide 2: Agenda
AGENDA OVERVIEW OPERATING TECHNOLOGY FINANCIAL SUMMARY REVIEW OVERVIEW & OUTLOOK
Slide 3: Overview
OVERVIEW Plus500 [1's TRADING WITH A PLUS
Slide 4: H1 2024 Key Takeaways
H1 2024 - CONTINUED STRONG PERFORMANCE H1 2024 KEY TAKEAWAYS Delivering Best-in-class Strong Enhanced Extremely robust across all technology financial and shareholder financial position strategic driving future operational returns initiatives growth performance 4
Slide 5: Plus500 Vision
PLUS500 VISION ENABLE TRUSTED AND INTUITIVE ACCESS TO FINANCIAL OPPORTUNITIES Driven by continued investment to scale up our technology ACROSS FINANCIAL ACROSS COUNTRIES ACROSS DEVICES INSTRUMENTS through global scale with through best-in-class by broadening product range localised services technolo
Slide 6: Plus500's Competitive Advantages and Differentiators
PLUS500’S COMPETITIVE ADVANTAGES AND DIFFERENTIATORS PLUS500’S GLOBAL SCALE WITH LOCAL OFFERINGS IS ENABLED BY ITS COMPETITIVE ADVANTAGES KEY DRIVERS SUPERIOR OFFERINGS >27M >60 Registered customers Countries 13 >2,500 Best-in-class proprietary Broad regulatory licences portfolio Balance sheet stren
Slide 7: H1 2024 – Continued Strategic, Operational & Financial Progress
H1 2024 – CONTINUED STRATEGIC, OPERATIONAL & FINANCIAL PROGRESS GROWTH ACROSS KEY FINANCIAL AND OPERATIONAL METRICS STRONG FINANCIAL FOCUS ON HIGHER PERFORMANCE VALUE CUSTOMERS $398.2M $183.9M c.$8,400 $2,264 Revenue EBITDA1 Average deposit per ARPU2 (H1 2023: $368.5m) (H1 2023: $174.1m) Active Cust
Slide 8: Focused Approach Leading to Strong Operational Outcomes
FOCUSED APPROACH LEADING TO STRONG OPERATIONAL OUTCOMES PROVEN ABILITY TO ATTRACT, RETAIN AND DEEPEN RELATIONSHIPS WITH HIGHER VALUE CUSTOMERS TO DRIVE GROWTH AND FOSTER COMPOUNDING VALUE CREATION KEY OPERATIONAL OPERATIONAL DRIVERS OUTPUTS $1.5bn +87% of customer deposits, of OTC revenue with avera
Slide 9: Years Since IPO - Established Track Record
11 YEARS SINCE IPO - ESTABLISHED TRACK RECORD SINCE ITS IPO IN 2013, PLUS500 HAS GENERATED SIGNIFICANT RETURNS FOR ITS SHAREHOLDERS 2013 2015 2017 2019 2021 2023 2014 2016 2018 2020 2022 2024 $3.4BN $2.7BN $2.3BN Cash from operations Accumulated net profit In shareholder returns THE BEST PERFORMING
Slide 10: ESG at the Heart of Our Business
ESG AT THE HEART OF OUR BUSINESS REMAINING FOCUSED ON OUR KEY ESG PRIORITIES SOC IA Environment People T L ONMEN TCFD1 report embedded as part Training, learning and career of the Annual Report development opportunities New green building HQ office Commitment to equal opportunities and VIR Adoption
Slide 11: Operating Review
{ OPERATING REVIEW * Plus50Q0 IT’S TRADING WITH A PLUS
Slide 12: H1 2024 - Continued Delivery Against Strategic Objectives
H1 2024 - CONTINUED DELIVERY AGAINST STRATEGIC OBJECTIVES UNDERPINNED BY MARKET-LEADING TECHNOLOGY, DIVERSIFIED REVENUE STREAMS AND CONTINUED ABILITY TO ATTRACT AND RETAIN HIGHER VALUE CUSTOMERS A global multi-asset Well positioned Product offering On-going organic fintech group with for success in
Slide 13: The Plus500 of Today
THE PLUS500 OF TODAY A MARKET-LEADING, DIVERSIFIED GLOBAL MULTI-ASSET FINTECH GROUP Global Multi-Asset Fintech Group OTC 1 FUTURES SHARE DEALING Existing New B2C B2B Existing New markets markets (Retail) (Institutional) markets markets Clearing Clearing ’Plus500 Futures’ Execution SaaS | T4 SaaS | T
Slide 14: H1 2024 KPIs by Region
H1 2024 KPIS BY REGION OUTSTANDING PERFORMANCE ACROSS GEOGRAPHIES 12% 15% 9% $1,606 26% 28% 175,909 56,759 42% $398.2M $3,792 $2,264 Active New Revenue ARPU $1,777 8% Customers 6% Customers1 43% 54% 51% 6% $1,730 UK EEA Australia Rest of World Strong ARPU performance Active Customer base New Custome
Slide 15: Long Term Customer Loyalty and Relationships
PLUS500’S LONG TERM CUSTOMER LOYALTY AND RELATIONSHIPS OTC REVENUE SPLIT BY CUSTOMER TENURE SIGNIFICANT INCREASE IN LONGEVITY OF PLUS500’S CUSTOMER BASE 11% 11% 14% 6% 16% 4% Significant increase in 17% longevity of Plus500’s 16% 16% 28% customer base 73% 24% 66% 19% 79% Long term customer relations
Slide 16: The US Growth Opportunity
THE US GROWTH OPPORTUNITY STRONG PERFORMANCES ACROSS BOTH INSTITUTIONAL AND RETAIL BUSINESSES IN THE US FUTURES MARKET B2B (INSTITUTIONAL) B2C (RETAIL) OFFERING OFFERING Execution and Clearing ‘Plus500 Futures‘ Significant growth in segregated Trading platform gaining strong client funds, with appro
Slide 17: Delivering on Longer Term Business Plan
DELIVERING ON LONGER TERM BUSINESS PLAN WELL POSITIONED FOR SUSTAINED VALUE CREATION LICENCES MEMBERSHIPS CAPITAL STRATEGIC PLATFORMS Highly Regulated Scarce assets Strong balance sheet STAKEHOLDERS Technology and to support significant Business alliances automation oriented volumes & partnerships >
Slide 18: Plus500US – Retail – 'Plus500 Futures'
PLUS500US – RETAIL – ’PLUS500 FUTURES’ 'PLUS500 FUTURES’ FOR RETAIL CUSTOMERS TRADING FUTURES PLUS500 FUTURES 'PLUS500 FUTURES' MOBILE Ongoing commitment to delivering innovative solutions Intuitive platform already gaining excellent traction New trading features with customers since launch Price al
Slide 19: Plus500US – T4 Platform
PLUS500US – T4 PLATFORM THE NEW PLUS500 T4 FOR PROFESSIONAL CUSTOMERS TRADING FUTURES AND OPTIONS ON FUTURES THE NEW T4 PRO T4 FUTURES AND LAUNCHED OPTIONS - MOBILE Transformational release that aligns seamlessly with the Group's brand standards and its goals New mobile platform A redesigned and enr
Slide 20: 'Plus500 Cosmos' - Digitalisation of the FCM
’PLUS500 COSMOS’ - DIGITALISATION OF THE FCM ALL-IN-ONE PLATFORM FOR INTRODUCING BROKERS COSMOS LAUNCHED 1 2 3 4 5 6 Trading Data Onboarding/ Requests Centre IB/Broker Layer Treasury Risk Management Verification Centre 20
Slide 21: Technology
= : TECHNOLOGY * Plus50Q0 IT’S TRADING WITH A PLUS
Slide 22: The Benefits of Designing Our Own Platforms
THE BENEFITS OF DESIGNING OUR OWN PLATFORMS FOR OUR CUSTOMERS FOR OUR GROUP Platform design allows us to Agile and efficient adjust quickly to regulatory customer journey changes and product opportunities Enables stronger retention with Strong system architecture 64% of OTC revenue derived from Supp
Slide 23: Plus500's Proprietary Technology Is Our Key Enabler
PLUS500’S PROPRIETARY TECHNOLOGY IS OUR KEY ENABLER ON-GOING INVESTMENT IN OUR SAAS BASED TECHNOLOGY TO DRIVE FUTURE GROWTH Front-End and Back-End Systems Architecture CRM Automated Verification Technologies Cashier Technology Analysis Tools Marketing Technology, AI & Big Data Risk Management Techno
Slide 24: Agile and Efficient Customer Journey
AGILE AND EFFICIENT CUSTOMER JOURNEY SUPPORTING OUR CUSTOMERS AT EVERY STAGE OF THEIR JOURNEY Marketing technology On-boarding Payment processing Risk management MARKETING OPERATIONS PRODUCT Verification Customer support Trading solutions New product offerings In-house, tailored technological soluti
Slide 25: Our Product Offerings
OUR PRODUCT OFFERINGS A DIVERSE TRADING EXPERIENCE FOR CUSTOMERS SUPPORTED BY PROPRIETARY TECHNOLOGIES TRADING PLATFORMS ACROSS OPERATING SYSTEMS CRM, Marketing Machine, Retention Machine, Webtrader; iOS (Mobile & iPad); Android (Mobile & Tablets) Localisation, Education, Risk Management, Cashier 25
Slide 26: Plus500US – Holistic Technological Solutions
PLUS500US – HOLISTIC TECHNOLOGICAL SOLUTIONS A VARIETY OF TECHNOLOGICAL SOLUTIONS TO SUPPORT CUSTOMERS TRADING ON FUTURES AND OPTIONS ON FUTURES Client Plus500 as a Clearing FCM Exchange / Clearing House T4 'PLUS500 FUTURES' 'PLUS500 COSMOS' CLEARING Plus500 had succeeded in positioning itself as a
Slide 27: Leading Mobile Offering Across Devices
LEADING MOBILE OFFERING ACROSS DEVICES AN INTUITIVE AND RELIABLE PRODUCT OFFERING WITH A MOBILE-FIRST APPROACH Plus500 continues to lead the way in mobile and tablet interface accessibility +87% of OTC revenue generated through mobile and tablet offerings +83% of all customer OTC trades took place o
Slide 28: Our Customer Centric Approach Trading Academy
OUR CUSTOMER CENTRIC APPROACH FULL SUITE OF EDUCATIONAL TOOLS AVAILABLE 24/7 TO CUSTOMERS TRADING ACADEMY 28
Slide 29: Expanded Our Product Offering in Japan
EXPANDED OUR PRODUCT OFFERING IN JAPAN POWERED BY OUR PROPRIETARY AND HIGHLY LOCALISED TECHNOLOGY LAUNCHED ‘KNOCK-OUT’ OPTIONS OFFERING FX-OTC OFFERING TO JAPANESE RETAIL CUSTOMERS 29
Slide 30: Financial Overview
i FINANCIAL OVERVIEW * Plus50Q0 IT’S TRADING WITH A PLUS
Slide 31: H1 2024 – Strong Financial Performance
H1 2024 – STRONG FINANCIAL PERFORMANCE DRIVING GROWTH AND REINFORCING OUR FINANCIAL POSITION 8% 6% 18% H1 2024 – KEY HIGHLIGHTS: Continued delivery across financial metrics Focus on higher value customers and $398.2m $183.9m $1.90 investment in retention technologies continue Revenue EBITDA Basic EP
Slide 32: Financial Highlights
FINANCIAL HIGHLIGHTS EXCELLENT PERFORMANCE IN H1 2024 REVENUE ($M) EBITDA ($M) EARNINGS PER SHARE (BASIC) ($) 900 832.6 600 5 H2 H2 H2 718.7 726.2 H1 453.8 H1 $3.81 H1 4 321.2 387.1 $3.06 $3.17 600 400 148.5 340.5 1.35 372.5 357.7 3 398.2 199.5 1.44 1.56 $1.90 166.4 2 183.9 300 200 511.4 305.3 2.46
Slide 33: Income Statement
INCOME STATEMENT KEY METRICS ($M) H1 2024 H1 2023 % Change H2 2023 % Change Revenue 398.2 368.5 8% 357.7 11% Selling and marketing expenses 164.2 148.3 11% 148.6 10% Administrative and general expenses 53.8 47.9 12% 45.0 20% EBITDA 183.9 174.1 6% 166.4 11% EBITDA margin 46% 47% (2%) 47% (2%) Financi
Slide 34: Cost Profile – Highly Disciplined Approach to Cost Management
COST PROFILE – HIGHLY DISCIPLINED APPROACH TO COST MANAGEMENT CONTROL OVER EXPENSES ENABLED BY PLUS500’S FLEXIBLE COST STRUCTURE Key Elements of cost base ($m) H1 2024 H1 2023 % change H2 2023 % change OUR COST BASE Advertising, technology and marketing investment 84.5 75.2 12% 60.2 40% Payment proc
Slide 35: Balance Sheet
BALANCE SHEET EXTREMELY STRONG BALANCE POSITION MAINTAINED IN H1 2024 - KEY LINE ITEMS ($M) 30/06/2024 31/12/2023 % Change 30/06/2024 31/12/2023 % Change Cash and Cash Equivalents 1,007.2 906.7 11% Current Liabilities 382.0 282.2 35% Other Current Assets 24.7 25.4 (3%) Non Current Liabilities 22.2 2
Slide 36: Cash Flow
CASH FLOW ATTRACTIVE CASH GENERATIVE BUSINESS MODEL - KEY LINE ITEMS ($M) OPERATING ACTIVITIES: H1 2024 H1 2023 % Change Cash generated from operations 177.5 130.4 36% Highly cash generative - Operating cash Interest received 29.1 22.3 30% conversion1 for H1 2024 was 97% Income tax paid, net Driven
Slide 37: Our Disciplined Approach to Capital Allocation
OUR DISCIPLINED APPROACH TO CAPITAL ALLOCATION SURPLUS CAPITAL OF UP TO $450M PROVIDES SIGNIFICANT OPTIONALITY REQUIRED REGULATORY CAPITAL CURRENT SURPLUS CAPITAL AND ADDITIONAL RISK MANAGEMENT CAPITAL c.$550M* UP TO c.$450M* of required capital – covering: to be invested in: Regulatory Working Risk
Slide 38: Our Approach to Shareholder Returns
OUR APPROACH TO SHAREHOLDER RETURNS ESTABLISHED TRACK RECORD OF SIGNIFICANT SHAREHOLDER RETURNS Shareholder returns policy: Total of c.$360m shareholder returns announced during YTD 2024 of net profits to be $2.3BN ANNOUNCED TODAY $185.5M At least returned to shareholders through share buybacks 50%
Slide 39: Summary & Outlook
» SUMMARY & OUTLOOK * Plus50Q0 IT’S TRADING WITH A PLUS
Slide 40: A Long Track Record of Profitable Growth & Cash Generation
A LONG TRACK RECORD OF PROFITABLE GROWTH & CASH GENERATION STRONG OPERATIONAL AND FINANCIAL PERFORMANCE SINCE IPO IN 2013 Since IPO year in 2013, STRONG BALANCE SHEET Plus500 has generated GROWING TOPLINE Debt-free since inception 18% CAGR1 revenue growth $3.4bn 100% average annual operating between
Slide 41: Our Strategic Roadmap
OUR STRATEGIC ROADMAP KEY GROWTH OPPORTUNITIES OVER THE MEDIUM-TERM New Products New Markets Expanding Offering Deepening Customer in Existing Markets Engagement 41
Slide 42: Plus500 Investment Case
PLUS500 INVESTMENT CASE 1 2 3 Established track record Focus on higher-value customers Diversification of products, of innovation and growth, markets and revenues underpinned by technology edge 4 5 6 Extremely robust Attractive shareholder returns Long-term planning underpins financial position incl
Slide 43: Outlook – Seizing the Attractive Growth Opportunities Ahead
OUTLOOK – SEIZING THE ATTRACTIVE GROWTH OPPORTUNITIES AHEAD WELL PLACED TO DELIVER CONTINUED GROWTH AND VALUE CREATION OUTLOOK MEDIUM TO LONG-TERM VIEW Plus500 is well positioned to capitalise on both Plus500 will continue to pursue major growth short-term market conditions and the medium to opportu
Slide 44: Thank You Q&A
Q&A THANK YOU Investor Relations Contact: Owen Jones Head of Investor Relations owen.jones@plus500.com ir@plus500.com
Slide 45: Appendix
Plussoo APPENDIX
Slide 46: Plus500's Portfolio of International Licences
PLUS500’S PORTFOLIO OF INTERNATIONAL LICENCES AN INCREASINGLY VALUABLE ASSET United Kingdom Australia South Africa New Zealand USA Jul 2021 Japan Mar 2022 Bahamas Jul 2023 Up to FY 2019 Cyprus Singapore Israel Seychelles Estonia UAE Jan 2020 Feb 2022 Feb 2023 46
Slide 47: Disclaimer
DISCLAIMER The Presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any The Company does not accept any responsibility for the accuracy or completeness of any information reported by offer to purchase or subscribe for, any shares or other