Plus500 Ltd. · LSE:PLUS
Plus500 — FY2024 Earnings Presentation
45 slides from Plus500's earnings presentation, Feb 18, 2025
Slide 1: Preliminary Results FY 2024
PRELIMINARY RESULTS FY 2024 Presented by: David Zruia, Chief Executive Officer Elad Even-Chen, Chief Financial Officer 18 February 2025 London Stock Exchange symbol: PLUS
Slide 2: Agenda
AGENDA OVERVIEW OPERATING TECHNOLOGY FINANCIAL SUMMARY REVIEW REVIEW & OUTLOOK
Slide 3: Overview
OVERVIEW a PluS5S00 11'S TRADING WITH A PLUS
Slide 4: FY 2024 Key Takeaways
FY 2024 KEY TAKEAWAYS Strong Delivered Excellent Delivered Extremely strategic, growth results with attractive robust operational across major revenue and shareholder financial and financial customer KPIs EBITDA1 growth returns position performance 1. EBITDA - Revenue (trading Income and interest in
Slide 5: Established Track Record of Shareholder Returns
ESTABLISHED TRACK RECORD OF SHAREHOLDER RETURNS 12 YEARS OF GENERATING SIGNIFICANT RETURNS FOR SHAREHOLDERS $3.5BN $2.8BN $2.5BN Cash from operations Accumulated net profit In shareholder returns 2013 2015 2017 2019 2021 2023 2014 2016 2018 2020 2022 2024 Best performing share in the FTSE All-Share
Slide 6: Operational Drivers
OPERATIONAL DRIVERS OPERATIONAL STRENGTH DRIVING STRONG OUTCOMES KEY OPERATIONAL OPERATIONAL DRIVERS OUTPUTS +25% UP YOY $3.0bn 88% Customer deposits, with OTC revenue Major focus on product Continued investment average deposit per generated from mobile development in our people Active Customer1 of
Slide 7: Strategic Roadmap
STRATEGIC ROADMAP KEY GROWTH OPPORTUNITIES OVER THE MEDIUM-TERM New Products New Markets Expanding Offering Deepening Customer in Existing Markets Engagement Supported by continued organic investments and targeted bolt-on acquisitions 7
Slide 8: The Plus500 of Today
THE PLUS500 OF TODAY FROM A SINGLE PRODUCT COMPANY TO A MARKET-LEADING, MULTI-ASSET FINTECH GROUP Global Multi-Asset Fintech Group OTC FUTURES SHARE DEALING Existing New B2C B2B Existing New markets markets (Retail) (Institutional) markets markets Clearing Clearing ’Plus500 Futures’ Execution SaaS |
Slide 9: Plus500 Acts as an Exchange
PLUS500 ACTS AS AN EXCHANGE PLUS500 HAS EVOLVED INTO A PROVIDER OF MARKET INFRASTRUCTURE OTC FUTURES & SHARE DEALING CLEARING HOUSES Data +30 Routing and order exchanges EXCHANGES OVER 30 EXCHANGES INNOVATIVE PROPRIETARY TECHNOLOGY 9
Slide 10: The Evolving Story of Our Futures Offering
THE EVOLVING STORY OF OUR FUTURES OFFERING SECURING CLEARING MEMBERSHIPS AND INDUSTRY RECOGNITION FY 2021 FY 2022 FY 2023 FY 2024 Jan 2025 10
Slide 11: Environmental, Social and Governance (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) KEY PRIORITY AREAS Customer Care Employee Board Environmental and Education Welfare Composition Policy Customers People Governance Environment Customer care and Commitment to equal Highly skilled, balanced, Adoption of Environmental protection as a key prio
Slide 12: Operating Review
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Slide 13: Operating Overview
OPERATING OVERVIEW THE GROUP DELIVERED EXCELLENT OPERATIONAL PROGRESS IN FY 2024 Global operations Continued to establish Product offering Continued to assess delivered meaningful US futures business in expanded and deeper global M&A progress during the year growing market customer engagement opport
Slide 14: Plus500's Portfolio of International Licences
PLUS500’S PORTFOLIO OF INTERNATIONAL LICENCES AN INCREASINGLY VALUABLE ASSET THAT CONTINUES TO EXPAND United Kingdom Australia South Africa New Zealand USA 2021 Japan 2022 Bahamas 2023 Up to FY 2020 Cyprus Singapore Israel Seychelles Estonia UAE DIFC UAE Mainland 2022 2023 Jan 2025 14
Slide 15: Global Operations and Growth Drivers
GLOBAL OPERATIONS AND GROWTH DRIVERS PLUS500’S GLOBAL SCALE AND LOCAL OFFERINGS ARE ENABLED BY ITS TECHNOLOGY GLOBAL OPERATIONS GROWTH DRIVERS >30M >60 Registered customers Countries 14 >2,500 Best-in-class proprietary Broad regulatory licences portfolio Balance sheet strength Regulatory licences gl
Slide 16: KPIs by Region
KPIS BY REGION EXCELLENT PERFORMANCE ACROSS GEOGRAPHIES 12% 14% 8% 27% 31% 254,138 118,010 45% $768.3M Active New 40% Revenue 8% Customers Customers1 6% UK 53% 49% EEA 7% Australia Rest of World 9% 30% 6% Highest level of Revenue increased by 6% Strong growth in Active New Customer growth versus FY
Slide 17: Long-Term Customer Retention Improvements
LONG-TERM CUSTOMER RETENTION IMPROVEMENTS SIGNIFICANT INCREASE IN THE LONGEVITY OF PLUS500’S OTC CUSTOMER BASE 6% 4% 11% 11% 14% 16% Significant increase in 17% longevity of Plus500’s 16% 16% 28% customer base 73% 24% 66% 19% 79% Long term OTC customers trading with customer relationships Plus500 fo
Slide 18: Ongoing Evolution of Non-OTC Offering
ONGOING EVOLUTION OF NON-OTC OFFERING TRANSFORMATION FROM ONE SINGLE PRODUCT TO AN ESTABLISHED MULTI-ASSET FINTECH GROUP FY 2021 FY 2024 IN 3-5 YEARS Non-OTC OTC 1% 10% 30-35% Revenue Non-OTC OTC 1% 15% 30-35% New Customers 18
Slide 19: Growth in Average Deposit per Active Customer
GROWTH IN AVERAGE DEPOSIT PER ACTIVE CUSTOMER TRANSFORMATION FROM ONE SINGLE PRODUCT TO AN ESTABLISHED MULTI-ASSET FINTECH GROUP FY 2021 FY 2024 IN 3-5 YEARS Significant increase in Average Deposit per Active Customer $12,000 1% 36% 50-55% Total amount of deposits $8,000 $5,000 Non-OTC OTC Reflectin
Slide 20: The US Growth Opportunity
THE US GROWTH OPPORTUNITY STRONG PERFORMANCES ACROSS BOTH INSTITUTIONAL AND RETAIL BUSINESSES IN THE US FUTURES MARKET B2B B2C B2B (INSTITUTIONAL) OFFERING: B2C (RETAIL) OFFERING: EXECUTION, CLEARING & ORDER ROUTING PLUS500 FUTURES Significant growth in customer segregated ‘Omni-set solution’ availa
Slide 21: Strong Foundations for Growth of Futures Business
STRONG FOUNDATIONS FOR GROWTH OF FUTURES BUSINESS WELL POSITIONED FOR SUSTAINED VALUE CREATION STRATEGIC LICENCES MEMBERSHIPS CAPITAL STAKEHOLDERS PLATFORMS Highly Regulated Scarce assets Strong balance Business alliances Technology and sheet to support & partnerships automation significant oriented
Slide 22: Technology
ion AY TECHNOLOGY [=a Plus500 1's TRADING WITH A PLUS
Slide 23: The Benefits of Designing Our Own Platforms
THE BENEFITS OF DESIGNING OUR OWN PLATFORMS FOR OUR CUSTOMERS FOR OUR GROUP Agile and efficient Platform design allows us to customer journey adjust quickly to regulatory changes and product opportunities Enables stronger retention with 67% of OTC revenue derived from Strong system architecture 3+ c
Slide 24: Proprietary Technology Is Our Key Enabler
PROPRIETARY TECHNOLOGY IS OUR KEY ENABLER ONGOING INVESTMENT IN OUR SAAS BASED TECHNOLOGY TO DRIVE FUTURE GROWTH Plus500’s CRM Front-End Marketing Technology, AI & Big Data Back-End Retention Technology System Architecture Fraud Detection Technologies Cashier Technology Risk Management Technology Pl
Slide 25: Seamless Customer Journey
SEAMLESS CUSTOMER JOURNEY IN-HOUSE, TAILORED TECHNOLOGICAL SOLUTIONS, EQUIVALENT TO MARKET-LEADING SAAS AND PLATFORM OFFERINGS Marketing technology On-boarding Payment processing Risk management MARKETING OPERATIONS PRODUCT Verification Customer support Trading solutions New product offerings 25
Slide 26: Diverse Product Offerings
DIVERSE PRODUCT OFFERINGS CUSTOMERS CAN EASILY TAILOR AND ADAPT THEIR TRADING STRATEGY SUPPORTED BY PROPRIETARY TECHNOLOGIES TRADING PLATFORMS ACROSS OPERATING SYSTEMS CRM, Marketing Machine, Retention Machine, Webtrader; iOS (Mobile & iPad); Android (Mobile & Tablets) Localisation, Education, Risk
Slide 27: Holistic Technological Solutions
HOLISTIC TECHNOLOGICAL SOLUTIONS A VARIETY OF TECHNOLOGICAL SOLUTIONS TO SUPPORT CUSTOMERS TRADING ON FUTURES AND OPTIONS ON FUTURES ‘T4-PRO‘ 'PLUS500 FUTURES' 'PLUS500 COSMOS' Plus500 had succeeded in positioning itself as an established market infrastructure provider within the futures and options
Slide 28: Multi-Asset Offering for Japanese Retail Customers
MULTI-ASSET OFFERING FOR JAPANESE RETAIL CUSTOMERS POWERED BY OUR PROPRIETARY AND HIGHLY LOCALISED TECHNOLOGY ‘KNOCK-OUT’ OPTIONS OFFERING FX-OTC OFFERING INDEX-OTC OFFERING 28
Slide 29: 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 88% of OTC revenue generated through mobile and tablet offerings 84% of all customer OTC trades took place on
Slide 30: Our Customer Centric Approach: Trading Academy
OUR CUSTOMER CENTRIC APPROACH FULL SUITE OF EDUCATIONAL TOOLS AVAILABLE 24/7 TO CUSTOMERS TRADING ACADEMY 30
Slide 31: Financial Review
i FINANCIAL REVIEW [=a Plus500 1's TRADING WITH A PLUS
Slide 32: Financial and Customer KPIs
FINANCIAL AND CUSTOMER KPIS GROWTH ACROSS KEY FINANCIAL AND CUSTOMER METRICS STRONG FINANCIAL GROWTH ACROSS MAJOR PERFORMANCE CUSTOMER KPIs $768.3M $342.3M c.$12,000 $3,023 Revenue EBITDA Average deposit per ARPU1 FY23: $726.2m (6% growth) FY23: $340.5m (1% growth) Active Customer FY23: $3,116 (3% d
Slide 33: Financial Highlights
FINANCIAL HIGHLIGHTS H2 STRONG FINANCIAL RESULTS DELIVERED IN FY 2024 H1 REVENUE ($M) EBITDA ($M) EARNINGS PER SHARE (BASIC) ($) 900 832.6 500 453.8 5 768.3 718.7 726.2 387.1 $3.81 400 340.5 342.3 4 $3.57 321.2 148.5 $3.06 $3.17 600 370.1 357.7 300 3 $1.35 372.5 199.5 166.4 158.4 $1.67 $1.44 $1.56 2
Slide 34: Income Statement
INCOME STATEMENT KEY METRICS ($M) FY 2024 FY 2023 % Change Revenue 768.3 726.2 6% Selling and marketing expenses 329.0 296.9 11% Administrative and general expenses 103.2 92.9 11% EBITDA 342.3 340.5 1% EBITDA margin 45% 47% (4%) Financial income (expenses), net 1.1 (0.2) (650%) Tax expenses 64.1 64.
Slide 35: Cost Profile – Investing in Future Growth
COST PROFILE – INVESTING IN FUTURE GROWTH CONTROL OVER EXPENSES ENABLED BY PLUS500’S FLEXIBLE COST STRUCTURE Key Elements of cost base ($m) FY 2024 FY 2023 % change OUR COST BASE Advertising, technology and marketing investment 171.8 135.4 27% Payment processing costs 39.4 40.0 (2%) Payroll and rela
Slide 36: Balance Sheet
BALANCE SHEET EXTREMELY STRONG BALANCE SHEET POSITION MAINTAINED IN FY 2024 ($m) 31/12/2024 31/12/2023 % Change ($m) 31/12/2024 31/12/2023 % Change Cash and Cash Equivalents 890.0 906.7 (2%) Current Liabilities 327.4 282.2 16% Other Current Assets 30.2 25.4 19% Non-Current Liabilities 20.1 22.7 (11%
Slide 37: Cash Flow
CASH FLOW ATTRACTIVE CASH GENERATIVE BUSINESS MODEL ($M) OPERATING ACTIVITIES: FY 2024 FY 2023 % Change Cash generated from operations 321.9 336.6 (4%) Highly cash generative - Operating cash Interest received 56.7 51.9 9% conversion1 for FY 2024 was 94% Income tax paid, net Driven by strong EBITDA
Slide 38: Our Disciplined Approach to Capital Allocation
OUR DISCIPLINED APPROACH TO CAPITAL ALLOCATION SURPLUS CAPITAL OF UP TO $340M PROVIDES SIGNIFICANT OPTIONALITY REQUIRED REGULATORY CAPITAL CURRENT SURPLUS CAPITAL AND ADDITIONAL RISK MANAGEMENT CAPITAL c.$550M* UP TO c.$340M* of required capital – covering: to be invested in: Regulatory Working Risk
Slide 39: Our Approach to Shareholder Returns
OUR APPROACH TO SHAREHOLDER RETURNS ESTABLISHED TRACK RECORD OF ATTRACTIVE SHAREHOLDER RETURNS $2.5BN $360.5M $200.0M Shareholder returns since Total shareholder returns Shareholder returns IPO year FY 2013 to YTD 2025 announced during FY 2024 announced today (Feb 2025) $360.5m $200.0m $2.5bn* $90.0
Slide 40: Summary & Outlook
» SUMMARY & OUTLOOK Sa Plus500 11'S TRADING WITH A PLUS
Slide 41: 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 STRONG BALANCE SHEET Since IPO year in 2013, GROWING TOPLINE Plus500 has generated Debt-free since inception 19% CAGR revenue growth $3.5bn 100% average annual operating between
Slide 42: Investment Case
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 including di
Slide 43: Outlook for FY 2025 and Beyond
OUTLOOK FOR FY 2025 AND BEYOND STRATEGICALLY WELL PLACED TO DELIVER GROWTH AND SHAREHOLDER RETURNS OUTLOOK MEDIUM TO LONG-TERM VIEW Well-positioned to capitalise on short-term Focus on strategic growth through market trends investments and acquisitions Focused on long-term growth opportunities Lever
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: 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