Flatexdegiro Se · XETR:FTK
Flatexdegiro — H1 2023 Earnings Presentation
27 slides from Flatexdegiro's earnings presentation, Jul 25, 2023
Slide 1: H1 2023 Preliminary Results
56 flatexDEGIRO AG | 25 July 2023 H1 2023 Preliminary Results
Slide 2: Disclaimer
flatexDEGIRO Disclaimer H1 2023 - Premliminary Results This release contains preliminary information that is subject to change and that is not intended to be complete. Non-IFRS measures (APMs) This presentation includes non-IFRS measures, including Adjusted EBITDA. These measures are alternative per
Slide 3: BaFin Update
flatexDEGIRO Preliminary Results - H1 2023 BaFin Update 1 Significant progress DEGIRO Credit Risk Mitigation Techniques (CRMT) New automated process developed and implemente All documentation delivered to Special Commissioner for due diligenc Aiming to mitigate CRMT findings in 2023 2 Parallel proce
Slide 4: EU Council & Parliament agree on a ban on payment for order flow
flatexDEGIRO Preliminary Results - H1 2023 EU Council & Parliament agree on a ban on ‘payment for order flow’ (PFOF) defined as “payments for forwarding client orders to certain trading platforms” New rules amending Markets in Financial Instruments Regulation (MiFiR) expected to apply from 1 January
Slide 5: AGM approved expansion of Supervisory Board and elects Britta Lehfeldt
flatexDEGIRO Preliminary Results - H1 2023 AGM approved expension of Supervisory Board and elects Britta Lehfeldt Supervisory Board Martin Korbmacher Stefan Müller Britta Lehfeldt Herbert Seuling Aygül Özkan Chair Deputy Chair Member Member Member Short CV Britta Lehfeldt Over 20 years of experience
Slide 6: Business Highlights
flatexDEGIRO Preliminary Results - H1 2023 Business Highlights Adjustment of commissions at J.P. Morgan new “Platinum” DEGIRO for US trades and local ETP-Partner at flatex trades* to 1 EUR (+1 EUR handling fee), effective mid-May 2023 “flatex wealth” - digital wealth * in Spain, Portugal, Italy and
Slide 7: Digital wealth management with flatex wealth launched
flatexDEGIRO Preliminary Results - H1 2023 Digital wealth management with “flatex wealth” launched Partnership with Whitebox started at flatex Germany in July 2023 Supplementing current customer offerin Four investment strategies: Global / Global Green / Value / Value Gree Recurring, AUM-based reven
Slide 8: Financial deep dive
flatexDEGIRO Preliminary Results - H1 2023 Financial deep dive Trading activity follows Ongoing improvement of Positive impact from seasonal patterns, monetarization higher interest rates still on low levels Continuous net cash Approx. € 9 m of non- Marketing significantly inflows recurring expenses
Slide 9: Commercial performance
flatexDEGIRO Preliminary Results - H1 2023 Commercial performance Gross customer additions (k) Assets under Custody (bn EUR) Settled transactions (m) -24% +26% -18% -35% +6% -19% 112 47.8 16.2 16.3 45.1 15.3 97 94 39.5 13.7 38.0 37.6 13.2 86 74 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Jun 2022 Sep 20
Slide 10: Customer growth & retention H1 2023
flatexDEGIRO Preliminary Results - H1 2023 Customer growth & retention H1 2023 Additional customer accounts H1 2023 in k 186 -24 162 Annualized retention rate YTD net customer account growth 98.1% Core (80, +6%) Factor: 2.1x 6.8% Growth (77k, +9%) 3.2% Research Customer account Churn Net new custome
Slide 11: Relative share of customer account growth per month follows seasonal patterns
flatexDEGIRO Preliminary Results - H1 2023 Relative share of customer account growth per month follows seasonal patterns (compared to average of 2016-2019) 26 % 21 % 24 % 28 % Q1 Q2 Q3 Q4 32 % 21 % - -
Slide 12: Development of Assets under Custody
flatexDEGIRO Preliminary Results - H1 2023 Development of Assets under Custody Assets under custody in € bn 47.8 45.1 39.5 38.0 37.6 Securities: Securities: Securities: Securities: Securities: 34.9 34.0 36.2 41.7 44.2 Cash: 3.2 Cash: 3.5 Cash: 3.2 Cash: 3.3 Cash: 3.5 Jun 22 Sep 22 Dec 22 Mar 23 Jun
Slide 13: Net cash inflows of € 2.9 bn, of which > 90% invested
flatexDEGIRO Preliminary Results - H1 2023 Net cash inflows of € 2.9 bn, of which > 90% invested Positive monthly net inflows continuing in € bn 5.9 3.0 -1.5 91% of net cash inflows got re-invested 2.7 Q1 / 2023 -1.5 Q2 / 2023 2.9 2.6 0.9 3.2 1.1 1.7 1.7 0.0 0.3 Cash inflows Cash outflows Net cash N
Slide 14: Comparable trading activity across the industry
flatexDEGIRO Preliminary results - H1 2023 Comparable trading activity across the industry flatexDEGIRO DARTs* per customer account Nordnet Avanza 0,20 0,16 0,12 0,08 0,04 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 * Nordnet, Avanza: based on Monthly statistics publish
Slide 15: Relative share of settled trades per month follows seasonal patterns
flatexDEGIRO Preliminary Results - H1 2023 Relative share of settled trades per month follows seasonal patterns (compared to average of 2016-2019) 26 % 23 % 24 % 28 % Q1 Q2 Q3 Q4 28 % 23 % - -
Slide 16: Revenue split
flatexDEGIRO Preliminary Results - H1 2023 Revenue split Adjusted* Revenues (m EUR) Commission income (m EUR) Interest income (m EUR) +88% +8% -18% -8% -23% +22% 98 68 32 91 88 84 27 64 79 61 22 53 53 17 15 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Q2/2022 Q3/20
Slide 17: Commission per Transaction
flatexDEGIRO Preliminary Results - H1 2023 Commission per Transaction € 4.26 € 4.17 € 3.98 € 3.99 Lower share of “High revenue transaction” due to overall lower trading activity, increasing 75% relative weight of low priced ETF 74% 73% 72% and saving plan Monetarization supported by increased DEGIRO
Slide 18: Low price elasticity proven
flatexDEGIRO Preliminary Results - H1 2023 Low price elasticity proven Indexed trading of US stocks at flatex and DEGIRO Parallel development of trading activity in US stocks at DEGIRO and flatex for 18 months, despite three price adjustments at Dec 2021 DEGIRO (none at Increase of fx fees flatex) f
Slide 19: No visible impact on the margin loan side either
flatexDEGIRO Preliminary Results - H1 2023 No visible impact on the margin loan side either Indexed usage of margin loans at flatex and DEGIRO, last 12 months to July 2023 Usage of margin loans YTD 2023: +10% at DEGIRO flat at flatex Jan 2023 Jun 2023 Increase of margin Announced rate increase loan
Slide 20: Marketing aligned with market environment
flatexDEGIRO Preliminary results - H1 2023 Marketing aligned with market environment Marketing expenses 31.0 significantly reduced in Marketing expenses per quarter in € m Q2 2023 after peak in 18.4 Q1 202 25.5 17.2 ~ 70 % of FY marketing budget spent in H1 / 202 12.6 17.9 ~ EUR 11 m budgeted for 9.
Slide 21: Ending our Sponsorship of Sevilla FC on a high note
flatexDEGIRO Preliminary Results - H1 2023 Ending our Sponsorship of Sevilla FC on a (very) high note, winning the Europa League Amount of “DEGIRO” web searches “normal” Wednesday (24 May 2023) Europa League Final (31 May 2023) * Sum of web searches in seven key markets (NL/ES/PT/FR/IE/CH)
Slide 22: H1 / 2023 impacted by approx EUR 9 million of one-time effects
flatexDEGIRO Preliminary Results - H1 2023 H1 / 2023 impacted by approx EUR 9 million of one-time effects Personne EUR 3.3 m one-time inflation compensation payment in Q1 2023 Marketin additional expenses due to Sevilla FC winning the Europa League in Q2 2023 Othe EUR 1.1 m BaFin fine for misdemeano
Slide 23: EBITDA development
flatexDEGIRO Preliminary Results - H1 2023 EBITDA development Adj.* EBITDA (m EUR) EBITDA (m EUR) +24% -22% 55 +13% 57 +50% 52 39 37 38 34 30 29 27 24 19 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 Q1/2022 Q2/2022 Q3/2022 Q4/2022 Q1/2023 Q2/2023 * excl. effects resulting from building/releasing
Slide 24: Guidance confirmed - Assumptions updated
flatexDEGIRO Preliminary Results - H1 2023 Guidance confirmed - Assumptions updated Implied P&L 2023 (vs. Feb 2023 assumptions) Guidance Guidance Commission Income ~ € 240 m (265 m) Adj. Revenues of ~ EUR 380 Adj. EBITDA margin > 40 Interest Income € ~125 m (100 m) Adj. EBT margin > 30 % Other Incom
Slide 25: Adj. EBITDA expected to increase by ~30% in H2/2023
flatexDEGIRO Preliminary Results - H1 2023 Adj. EBITDA expected to increase by ~ 30 % in H2/2023 (vs. H1/2023) ACTUAL P&L H1/2023 Implied P&L H2/2023 Revenues Lower number of trades compensated by increased monetarization Commission Income € 121 m Commission Income ~ € 120 m (H2/2023 level of ~ EUR
Slide 26: H1 2023 Preliminary Results
56 flatexDEGIRO AG | 25 July 2023 H1 2023 Preliminary Results
Slide 27: Contact
97 Contact Achim Schreck flatexDEGIRO AG Head of IR and Corporate Communications Mobile: +49 160 9277 4570 Address: Omniturm, Große Gallusstraße 16-18 60312 Frankfurt/Main, Germany Phone: +49 69 4500 01 1700 Mail: achim.schreck@flatexdegiro.com Website: www.flatexdegiro.com flatexDEGIRO AG Prelimina