Plus500 Ltd. · LSE:PLUS
Plus500 — H1 2014 Earnings Presentation
23 slides from Plus500's earnings presentation, September 2014
Slide 1: Interim Results for the six months ended 30 June 2014
Interim Results for the six months ended 30 June 2014 London Stock Exchange Symbol: PLUS 1
Slide 2: Disclaimer
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 purchase or subscribe for, any shares or other securities of the Company, nor shall it (or any part of it), or the fact of its distribution, form the basis of
Slide 3: Highlights
Highlights Plus500 in numbers: Plus500 has developed and operates an online trading platform for retail customers to trade #1 >50 31 Rated on mobile Countries Languages Contracts For Difference (CFDs) in more than app stores 50 countries Proprietary technology platform is user $106.2m +138% 68% Grow
Slide 4: Results Summary
Results Summary H1 2014 Active Customers* increased 35% to 67,232 (H1 2013: 49,752) H1 2014 New Customers** increased 33% to 32,673 (H1 2013 : 24,626) Ongoing strengthening in Plus500’s market position with further expansion in Europe Significant increase in smartphone and tablet users accessing Plu
Slide 5: Business Overview
Business Overview Financial Overview Outlook 5
Slide 6: Products
Products CFD products Platform and Devices Trading Platform Supporting 31 languages in 2,100 CFD products Retail customers only more than 50 countries 6
Slide 7: Business model
Business model Revenues International Revenue Split FY 2013 Footprint Plus500 UK FCA UK-regulated subsidiary Dealing Spreads Plus500 Ltd. Market Israel Headquarters Difference between the buy price Premium 23% 3% and the sell price of a CFD Overnight Premiums Charges on open customer Spreads 74% pos
Slide 8: Plus500 technology, our key asset
Plus500 technology, our key asset Proprietary technology, developed in-house: key differentiator and flexible advantage System Architecture “Marketing User Interface Machine” Back Affiliate Office Programme Hedging and Risk Fraud Payment Management Interface 8
Slide 9: Marketing infrastructure: online is key
Marketing infrastructure: online is key Total marketing investment in $m Online advertising 60 Using our proprietary automated marketing platform 50 55.0 ensures that spending is efficient with a demonstrable 40 return on investment 30 35.9 20 23.0 19.8 10 The “Marketing Machine” 11.9 0 Focus is onl
Slide 10: Marketing infrastructure: affiliates and offline
Marketing infrastructure: affiliates and offline .com A large international affiliates programme Over 5,000 active affiliates who advertise Plus500 Paid on success only Easy-to-access and use affiliates’ portal of marketing collateral Fully automated online analysis and reward platform Localised mar
Slide 11: The Plus500 brand
The Plus500 brand United Kingdom Italy Germany * Data from Google Trends web searches, June 2010 – June 2014 11
Slide 12: Mobile as a key growth driver
Mobile as a key growth driver Number of Signups by Device Revenues by Device 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Windows Web IPhone IPad Android AndroidTablet Windows Web IPhone IPad Android AndroidTablet 12
Slide 13: Risk management
Risk management Financial risk management is key to the business Risk Management Advisory Market Risk Spread of customers acts as a natural risk-mitigation: No dominant customers Real-time monitoring of exposure limits by: Regulators Individual clients Individual instruments Total Group exposure Whe
Slide 14: Regulation and compliance
Regulation and compliance Client Take-On Ltd Israel Headquarters FCA / ASIC rules set out client take-on requirements Customers must self-certify their understanding of the risks UK Ltd AU Pty Ltd FCA Registered Australian (ASIC) Regulated All marketing carries appropriate risk warnings All EEA cust
Slide 15: Financial Overview
Business Overview Financial Overview Outlook 15
Slide 16: First half of 2014 - best performance yet
First half of 2014 - best performance yet Key Financial Indicators – Income Statement ($ ,000): Six months ended June 30 FY 2014 2013 2013 Trading income (net) 106,242 44,673 115,088 1H14/1H13 growth 138% Selling and marketing expenses 30,702 21,195 44,322 Administrative and general expenses 3,583 1
Slide 17: Our client base continues to grow fast
Our client base continues to grow fast Number of Active Accounts Number of New Accounts 80,000 34,000 70,000 32,000 32,673 60,000 67,232 30,000 +35% +33% 50,000 28,000 49,752 40,000 26,000 30,000 24,000 24,626 20,000 22,000 10,000 20,000 1H13 1H14 1H13 1H14 Australia and Asia are among our fastest g
Slide 18: ARPU vs. AUAC
ARPU vs. AUAC ARPU ($) AUAC ($) 2,000 2,000 1,800 1,800 1,600 1,600 1,400 1,580 1,400 1,200 1,200 1,000 1,000 +76% 800 898 800 +3.6% 600 600 719 745 400 400 200 200 0 0 1H13 1H14 1H13 1H14 Further significant growth expected in ARPU in H1 2014 due to improved branding and retention initiatives Expec
Slide 19: Balance sheet strength
Balance sheet strength Key Financial Indicators – Balance Sheet: Six months ended June 30 FY 1H14/1H13 2014 2013 2013 Growth Current Assets 119,509 36,682 88,739 Non Current Assets 1,086 626 1,354 Total Assets 120,595 37,308 90,093 223% Liabilities 31,825 18,737 22,079 70% Equity 88,770 18,571 68,01
Slide 20: Growing cash balances
Growing cash balances Key Financial Indicators – Cash Flow: Six months ended June 30 1H14/1H13 2014 2013 Growth Operating activities: Cash generated from operations 74,026 19,346 283% Income tax paid - net (11,117) (3,607) 208% Net cash provided by operating activities 62,909 15,739 300% Net cash us
Slide 21: Outlook
Business Overview Financial Overview Outlook 21
Slide 22: Outlook
Outlook H1 2014 showed strong growth compared to H1 2013 New features and trading instruments Continued optimisation of marketing ROI The Board remain committed to a 50% payout dividend policy Additional special dividends where capital needs allow Windows phone app on track Expansion into new geogra
Slide 23: Contact Details
Contact Details Elad Even-Chen, Ltd. Head of Investor Relations MATAM, Building 22 Tel: +972-4-8189503 Haifa, 31905 Israel Email: ir@Plus500.com UK Ltd. AU Pty Ltd. 45 Moorfields 19-21 Hunter St London, EC2Y9AE Sydney, 2000 UK Australia 23