Hypoport Se · XETR:HYQ
Hypoport — Q3 2022 Earnings Presentation
61 slides from Hypoport's earnings presentation, Nov 14, 2022
Slide 1: Hypoport SE Results for Q1–Q3 2022
Hypoport SE Results for Q1–Q3 2022
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 for Q1–Q3 2022 2
Slide 3: Hypoport – a network of technology companies
Hypoport – a network of technology companies Revenue in Q1–Q3 2022 STAR- BAUFI POOL QUALITY NEX POOL GENO PACE Insurance industry Credit industry FINMAS €44 SMART INSURTECH €168 million EUROPACE million ePension funding- REM port CAPITAL VALUE AG FIO DR. KLEIN PRIVATE CLIENTS Private clients DR. KLE
Slide 4: Above-average growth, even in a weak market environment
Above-average growth, even in a weak market environment Results for Q1–Q3 2022 Key figures for Q1–Q3 2022 (yoy change) • Revenue: €368 million (+13%) • Gross profit: €206 million (+18%) • EBITDA: €55 million (+0%) • EBIT: €31 million (-7%) • EPS: €3.90 (-3%) Hypoport Q1–Q3 2022 (yoy change) Market v
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 info & IR)
Slide 6: Clear downturn in the overall market
Clear downturn in the overall market Volume of private mortgage finance in Germany 90 Total mortgage finance volume (€ billion) 80 70 60 50 40 30 Q1 2007 Q1 2018 Q1 2006 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Sources: Bundesban
Slide 7: Adverse macroeconomic environment
Adverse macroeconomic environment Factors currently influencing the mortgage finance volume 10% 7% 9% Inflation Ten-year fixed mortgage interest rate 8% 6% 7% 5% 6% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% -1% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2006 2007 200
Slide 8: Disproportionate decrease in new construction
Disproportionate decrease in new construction Mortgage finance volume by intended use New builds -50% yoy Quelle: Europace Hypoport SE, results for Q1–Q3 2022 8
Slide 9: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price info & IR)
Slide 10: 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 for Q1–Q3 2022 10
Slide 11: 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 12: Market share grows, even in this weak market phase
Market share grows, even in this weak market phase Credit Platform: mortgage finance and building finance product type • Further gain in market share for mortgage finance with Volume of transactions (€ billion)* growth of 3% (overall market growth: 0%; market downturn 5-year CAGR: +18% +4% has start
Slide 13: Europace still has good potential for growth
Europace still has good 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: +64% +17% Cooperative Brokers banks 12 ~25–30% 10.6 ~25–30% 9.1 8 1 1 2 4 ~60% ~20% 2016 2017 20
Slide 14: Robust growth in a stagnating market environment
Robust growth in a stagnating market environment Credit Platform: personal loans product type • Since 2016, Europace has gained significant market share in Transaction volume in personal loans (€ billion)* the personal loans business, with a focus on B2B 5-year CAGR: +12% +37% • Volume for Q1–Q3 202
Slide 15: REM Capital weaker in Q3 after a strong H1
REM Capital weaker in Q3 after a strong H1 Credit Platform: corporate finance product type • From summer 2021 until summer 2022, REM Capital saw Volume of new projects at REM Capital (€ billion) strong growth in connection with KfW support schemes for German SMEs in relation to energy efficiency (in
Slide 16: Profitable growth thanks to innovation leadership
Profitable growth thanks to innovation leadership Credit Platform: revenue, gross profit and EBIT Revenue (€ million) +15% • Double-digit percentage growth in revenue thanks to strong performance in the first six months of the year 168.8 147.1 • Changes to KfW support schemes in July 2021 led to exc
Slide 17: Private Clients
Private Clients Business model & results DR. KLEIN PRIVATE CLIENTS VER- GLEICH .DE Private clients Hypoport SE, results for Q1–Q3 2022 17
Slide 18: Brokers of mortgage finance products
Brokers of mortgage finance products 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
Slide 19: Dr. Klein strong in Q1 but weak in Q3
Dr. Klein strong in Q1 but weak in Q3 Private Clients operational key figures: volume of loans brokered and number of advisors Volume of new loans brokered to private clients • Increase of 5% in the volume of new loans brokered in Q1–Q3 (€ billion)* 5-year CAGR: +18% was mainly attributable to the e
Slide 20: Dr. Klein keeps growing, despite a challenging market
Dr. Klein keeps growing, despite a challenging market Private Clients: revenue, gross profit and EBIT • Further slight gains in market share despite the Revenue (€ million) +5% challenging market environment 101.1 106.3 • Private Clients segment impacted most by market conditions due to strong focus
Slide 21: Real Estate Platform
Real Estate Platform Business model & results EUROPACE VALUE AG FIO DR. KLEIN WOWI PROM MISE Real-estate industry Hypoport SE, results for Q1–Q3 2022 21
Slide 22: Areas of potential in the digitalisation of the housing industry
Areas of potential in the digitalisation of the housing industry German real-estate industry market Number of residential units in Germany: 41 million Owner-occupiers Private (small-scale) landlords Institutional housing sector Market share in approx. 20 million approx. 15 million approx. 6 million
Slide 23: Strong cross-selling potential
Strong cross-selling potential Market share for the marketing, financing and valuation of residential property Property purchases Mortgage finance Property valuation Notaries & Vermarktung Sellers Brokers Buyers Finanzierung Advisors Marketplace Banks Bewertung Appraisers land register ~238 Mrd. € 2
Slide 24: Scaling up of marketing through FIO is slowly gaining momentum
Scaling up of marketing through FIO is slowly gaining momentum Real Estate Platform: property sales platform and property management platform Marketing through FIO • Development of software solutions for the sale and Number of clients (€ billion) management of residential properties in the credit an
Slide 25: VALUE AG achieves growth in spite of regulatory changes
VALUE AG achieves growth in spite of regulatory changes Real Estate Platform: property valuation platform VALUE AG • The business model consists of integrated property valuations Clients Valuation volume (€ billion) for the lending banks and the real-estate industry +10% +18% • High level of capital
Slide 26: Soaring market in H1, followed by a slowdown in Q3
Soaring market in H1, followed by a slowdown in Q3 Real Estate Platform: property financing platform Volume of new loans brokered on the property • The business model is based on loan and insurance brokerage, financing platform +11% mainly for the municipal and cooperative housing sectors (€ billion
Slide 27: Growth segment with high capital expenditure for the future
Growth segment with high capital expenditure for the future Real Estate Platform: revenue, gross profit and EBIT +16% • Healthy to very healthy operating performance of all four Revenue (€ million) 49.7 platforms (property sales, valuation, financing and 42.7 management) in the first half of 2022 •
Slide 28: Insurance Platform
Insurance Platform Business model & results QUALITY POOL Insurance industry SMART INSURTECH ePEN- SION Hypoport SE, results for Q1–Q3 2022 28
Slide 29: Digitalisation of the insurance industry
Digitalisation of the insurance industry Insurance Platform segment business model End customers// employees & Distributors Poolers B2B Product suppliers employers insurance platform Insur apps Insur apps Advisors in bank branches Dr. Other brokers Klein Quality-/ SMART Insurance DR. KLEIN Amex- SMA
Slide 30: 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 2021: €223 billion in annual net premiums written ~ 173 164.3 ~31 19.5 8.6 2.1 28.9 0.1 19.4 Private insurance Industrial insurance Occupational insurance schemes Using Hypoport systems Not usi
Slide 31: Steady increase in the platform volume
Steady increase in the platform volume Insurance Platform: portfolios migrated to SMART INSUR • Annual net premiums of approx. €8.6 billion are managed Annual net policy premiums on private insurance portfolios (legacy system / SMART INSUR platform) in the legacy systems of the acquired companies fo
Slide 32: Validation of strategic options completed
Validation of strategic options completed Insurance Platform: industrial insurance portfolios • As a result of acquisitions of software systems in the period Annual net policy premiums on industrial insurance portfolios (€ billion) from 2016 to 2019, Hypoport also took over business relationships in
Slide 33: Huge potential for digitalisation in occupational pension market
Huge potential for digitalisation in occupational pension market Insurance Platform: occupational pension portfolios • ePension integrates all stakeholders in the occupational Annual net policy premiums on occupational pension portfolios (€ billion) pension market, including HR departments of large
Slide 34: Progress with the strategic realignment
Progress with the strategic realignment Insurance Platform: revenue, gross profit and EBIT +24% • Additional clients were signed up for SMART INSUR and Revenue (€ million) ePension in 2021 and 2022, but the acquisition of new 44.0 clients continues to progress much more slowly than 35.6 expected Q1–
Slide 35: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Outlook Annex (incl. share price info & IR)
Slide 36: Continued growth amid substantial investment
Continued growth amid substantial investment Overview of Hypoport's key performance indicators Performance (€ million) Earnings (€ million) 367.5 55.1 55.1 325.3 EBITDA Revenue +0% +13% 33.4 EBIT -7% 31.0 Gross 206.4 EAT 175.5 profit 25.4 24.1 +18% -5% Q1-Q3 21 Q1-Q3 22 Q1-Q3 21 Q1-Q3 22 Hypoport SE
Slide 37: 22-year track record as a profitable growth company
22-year track record as a profitable growth company Long-term changes in revenue and EBITDA Established Upscaling and Qualitative growth Start-up despite fin. crisis expansion in crisis Revenue (€ million) 446 368 4 26 98 1999 2006 2013 2021 Q1-Q3 22 EBITDA (€ million) 77 55 2 7 8 1999 2006 2013 202
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 info & IR)
Slide 39: Supportive factors will normalise market
Supportive factors will normalise market Current factors in residential property financing (overview) Negative factors Positive factors • Number of offered properties increases • Rising rents & shrinking rental supply • Inflation (far above capital interest) • Less competition in new construction fr
Slide 40: Negative factors temporarily outweigh
Negative factors temporarily outweigh Current negative factors in residential property financing Negative factors • Higher interest rates mean that people may no longer be able to afford their ideal property; buyers need time to reevaluate what properties they want to target, but the sustained upwar
Slide 41: Supportive factors will normalise market
Supportive factors will normalise market Current positive factors in residential property financing Positive factors • Supply of properties increases • Shrinking supply of rental homes and rapidly rising rental prices mean that prospective tenants face a tightening rental market • Inflation (above c
Slide 42: Focus on adapting to market conditions
Focus on adapting to market conditions Measures implemented in Q3 and Q4 2022 Focus topics • Adjustment of cost levels to reflect the current weakness in the market for private and institutional mortgage finance and the market for corporate finance • Implementation of a rigorous cost reduction progr
Slide 43: Private mortgage finance remains a growth market
Private mortgage finance remains a growth market Structural factors underpinning sustained growth in the finance market Normalised demand in an environment of stable prices ~ €280 billion p.a. 1 million Massive inward households as migration due to accumulated shortage of skilled demand due to lack
Slide 44: Previous market downturns never lasted long
Previous market downturns never lasted long Volume of private mortgage finance in Germany Total mortgage finance volume (€ billion) 100 Market expected 90 to normalise within 4–8 80 quarters 70 60 4 quarters 4 quarters 6 quarters 4 quarters 50 40 30 20 10 0 Q1 2005 Q1 2018 Q1 2003 Q1 2004 Q1 2006 Q1
Slide 45: For years Forecast for 2022 For many more years
For years Forecast for 2022 For many more years Hypoport has been Currently withdrawn generating double-digit Hypoport will generate increases in revenue double-digit increases in and EBIT market share and thus, in normal market phases, also in revenue and EBIT Hypoport SE, results for Q1–Q3 2022 45
Slide 46: 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 for Q1–Q3 2022
Slide 47: 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 48: Annex
Annex Hypoport SE, results for Q1–Q3 2022 48
Slide 49: Investment highlights
Investment highlights ~25% 1.3 REVENUE GROWTH MODERATE DEBT LEVEL 5-year CAGR Liabilities to banks / 12M EBITDA ~15% 20+ EBIT INCREASE YEARS 5-year CAGR of experience with platform- based business models 15+ 93% ACQUISITIONS OUR EMPLOYEES in 7 years are satisfied or even extremely satisfied with Hyp
Slide 50: 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 2022 Key performance indicators KPI Details Value Ronald Slabke (CEO) Treasury shares Earnings per share in Q1–Q3 EPS €3.90 Free float 2022 (of which more than 3% hel
Slide 51: Share price performance clearly superior to indices
Share price performance clearly 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
Slide 52: 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, Hamburg, Frankfurt (3x), Bankhaus Metzler Sell €72.00 26 Sept 2022 Conferences 9M 2022 London, München (2x), Paris Berenberg Buy €225.0
Slide 53: 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 • Lack of available properties • Strong pent-up demand in and from the Finance for rental market OWNER- • High ancillary purchasing costs
Slide 54: Previous market downturns never lasted long
Previous market downturns never lasted long Volume of private mortgage finance in Germany Mortgage financing volume total market (in billion euros) Mortgage financing volume total market 12 Month (indexed) 100 190 90 180 80 170 160 70 150 60 140 50 130 40 120 30 110 20 100 10 90 0 80 Q1 2009 Q1 2022
Slide 55: Previous market downturns never lasted long
Previous market downturns never lasted long Volume of private mortgage finance in Germany Mortgage financing volume total market (in billion euros) Mortgage financing volume total market 12 Month average 100 90 80 70 60 50 40 30 20 10 0 Q1 2007 Q1 2018 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2008 Q1 2009
Slide 56: Trigger events cause Germans to turn to financing
Trigger events cause Germans to turn to financing Factors of relevance for financing decisions Type Property purchase Remortgaging New builds Other (e.g. renovation) Reasons Regulatory and political High transaction costs and Lack of development land Insulation bonus environment inaccessible rental
Slide 57: Neither interest rates nor short-term political topics are relevant
Neither interest rates nor short-term political topics are relevant 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 Lockdown
Slide 58: 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 59: A long-term growth market
A long-term growth market Structural factors underpinning sustained growth in the finance market Regulation of Demand for New builds the rental housing market Rental costs Excess demand Volume of property Mortgage (approx. 2 million homes) transactions finance volume Property prices Regulation of €8
Slide 60: Unfavourable macroeconomic environment
Unfavourable macroeconomic environment Factors currently influencing the mortgage finance volume 10% 4% 9% Inflation Ten-year fixed mortgage interest rate 8% 7% 3% 6% 5% 4% 2% 3% 2% 1% 1% 0% -1% 0% 2019 2020 2021 2022 2019 2020 2021 2022 180 105 Property prices (indexed) German GDP (indexed, inflati
Slide 61: 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