Smartbroker Holding AG · XETR:SB1
Smartbroker — wallstreet:online — Investor Presentation (June 2021)
24 slides from Smartbroker's investor presentation, June 2021
Slide 1: Unique Operating Model To Digitise Europe's Largest Retail Brokerage Market
Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market June 2021
Slide 2: Meet the newly expanded team
2 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Meet the newly expanded team Oliver Haugk Stefan Zmojda CTO Chief Revenue Officer Matthias Hach Roland Nicklaus CEO CFO • Joined March 2021 • Assumed role in April 2021 • 25+ years digital banking and • Joined as non-execu
Slide 3: Overview of Our Business: Social & Media meets Brokerage & Transaction
3 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Overview of Our Business: Social & Media meets Brokerage & Transaction wallstreet:online Group Social & Media Smartbroker Classic Transaction Launched 1998 Launched Dec 2019 55% 32% 13% of 2021E of 2021E of 2021E revenues
Slide 4: Investment Thesis
4 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Investment Thesis 1 Unique Target Operating Model 2 Strong Operational and Financial Momentum 3 A EUR 7 Trillion (7 x 1012) Market1 Growing at 6% p.a. 4 Best Positioned for Material Market Share Gain 5 Well-defined Product
Slide 5: Driving Superior Financial Returns
5 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Driving Superior Financial Returns Revenues (EUR mm) EBITDA (EUR mm) 60 50 16.5 - 18.5 50 45 11.9 40 64% Organic 100% controllable 30 28 Customer Acquisition Costs (CAC) 20 62% Organic 6.7 12.3 10 4-6 4.3 0 2019A 2020P 202
Slide 6: Strong Operational Momentum
6 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Strong Operational Momentum WSO portal net mm PIs Social & Media reach and revenues in context revenue per month growth 1000 wallstreet:online portals’ rolling 600mm 600,000,000 200% Q1 2021 run-rate 3-months net revenues.
Slide 7: … and Enabling Strategic Flexibility
7 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market … and Enabling Strategic Flexibility 1 Buy-Out of wallstreet:online capital AG minorities 2 Upskilling and Organisational Growth 3 Internalisation of Outsourced Functions 4 Building a Strong and Recognisable Consumer Brand
Slide 8: Unique Target Operating Model for a Highly Attractive Market
8 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Unique Target Operating Model for a Highly Attractive Market
Slide 9: The Execution Only brokerage market is a tiny fraction of German retail finance
9 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market The Execution Only (“XO”) brokerage market represents a Tiny Fraction of the German Retail Finance Sector # of account holders (in mm) ~80 EUR 1bn p.a. Total Revenues of Execution Only Brokers EUR 10bn p.a. Only ~15% of Ge
Slide 10: XO Market Growth Drivers
10 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market XO Market Growth Drivers XO Market German Households’ Financial Asset Growth ~10%+ ~6% Future CAGR Future CAGR 1 2 3 Structural Fee disclosures Technology The traditional ‘advisory’ proposition Thanks to fee transparency
Slide 11: German Execution Only Brokerage Market
11 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market German Execution Only Brokerage Market 1st Generation Neobroker Other The four 1st Generation 1,530 Brokers Command c75% share of the German 30 # Trades per customer p.a. market (by # of trades) 20 2nd Generation Neo Brok
Slide 12: Market moving towards zero-fee commissions
12 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Market moving towards zero-fee commissions Approximate trading costs of select German brokers (EUR) Approximate % 70% 25% 5% of overall XO market Commissions as % ~65% ~75-85% ~10% of total revenues 17 17 17 13 12 4 8 7 1
Slide 13: Why will we gain market share?
13 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Why will we gain market share? Cost is THE key customer selection criteria How do we compare ? Key customer criteria in % of responses & Low securities account charges 64 • Zero securities account fee Ease of use 60 Cost
Slide 14: We Gain Germany's Most Valuable XO Customers
14 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market We Gain Germany’s Most Valuable XO Customers AUMs per Customer Trades per Customer p.a. Key Take-Aways (EUR 000s) 50-55 • Extremely Favourable 55 Customer Life-Time Value 33 Drivers 27 • Positive Unit Economics from 18 Ye
Slide 15: German Households Financial Assets: A EUR Trillion Market Growth at 6% p.a.
15 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market German Households Financial Assets: A EUR 7 Trillion Market Growth at 6% p.a. Evolution of German Households' Financial Assets (EUR bn) 340 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2015 2016 2017 2018 2019 2020 Cash &
Slide 16: German Households are Underweight Equities
16 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market German Households are Underweight Equities Only 17% of total financial assets are invested in listed equities & funds Share by Provider Total Financial (by AUM) 100% Assets 60-65% Traditional Banks EUR 6,950 bn ~35% 1 st
Slide 17: We know our customers - Smartbroker
17 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market We know our customers - Smartbroker Conversion Rate Mobile 1.75% 40% Session Length 2:33 56% Desktop User Access Behaviour Device Days to 1.5 4% Tablet Conversion 41.8 Average Age Direct 26% 23% Female Channels Demographi
Slide 18: Germany's only Broker and Finance Community Provider
18 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Germany’s only Broker and Finance Community Provider 225,000+ 30,000+ 2+ million regular newsletter community entries total app recipients each day downloads 3+ million 135,000 clients unique users 1.5m followers 500,000+
Slide 19: Well-Defined Product Development Roadmap
19 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Well-Defined Product Development Roadmap • Web Site Relaunch Smartbroker • Web Trading Smartbroker • New App Smartbroker • Crypto Trading Smartbroker • Community Direct Trading • App Relaunch WSO • Website Relaunch Ariva
Slide 20: State-of-the-Art Technology Roll-Out
20 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market State-of-the-Art Technology Roll-Out Driving Down Costs and Increasing Agility Optimizing • Solid competence operating large data bases - over 15 years’ experience • Millions of datapoints processed each second • Two dedi
Slide 21: Ample Long-Term Growth Avenues
21 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Ample Long-Term Growth Avenues Provider Revenue composition (FY 2018 for US players, 2019 comdirect, 2020 flatex) 55 18 4 23 Key Take-Aways • In contrast to their US peers, 57 7 1 35 German 1st generation brokers rely hea
Slide 22: Wallstreet:online AG – share details
22 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Wallstreet:online AG – share details Key data wallstreet:online AG - share price evolution ISIN DE000A2GS609 35 26/05/21 Reuters WSO1k.DE 30 €27.70 Number of shares 14.38m 25 Market Cap (30/4/21) cEUR320m 20 Research Metz
Slide 23: Thank You for Your Attention
23 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Thank You Thank You! for Your Attention
Slide 24: Disclaimer
24 Unique Operating Model To Digitise Europe’s Largest Retail Brokerage Market Disclaimer This presentation has been prepared by wallstreet:online AG (“wallstreet:online”) and comprises the written materials/slides for a presentation concerning wallstreet:online, its group companies and the product
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