Flatexdegiro Se · XETR:FTK
Flatexdegiro — Investor Presentation (April 2023)
31 slides from Flatexdegiro's investor presentation, April 2023
Slide 1: flatexdegiro - Europe's Leading Online Broker
56 Corporate Presentation | April 2023 flatexdegiro - Europe’s Leading Online Broker
Slide 2: Disclaimer
flatexDEGIRO Corporate Presentation Disclaimer Non-IFRS measures (APMs) This presentation includes non-IFRS measures, including Adjusted EBITDA. These measures are alternative performance measures as defined by th European Securities and Markets Authority ("ESMA"). flatexDEGIRO presents these non-IF
Slide 3: Europe's leading low cost broker with unrivaled platform and product offer
flatexDEGIRO Corporate Presentation Europe's leading low cost broker with unrivaled plattform and product offer 1 First, largest and fastest-growing pan-European retail online broker, perfectly positioned for strong structural growth 4 Pure play retail online broker with European banking license, a
Slide 4: flatexDEGIRO at a glance
flatexDEGIRO Corporate Presentation flatexDEGIRO at a glance Key Operating Metrics 2022 Revenue Model and Contribution* Number of Markets Customer Employees accounts 16 countries 2.4m ~1,300 Executed Executed Trade Assets under Trades (LTM) Volume Custody Online brokerage >67m >€300bn ~€40bn Credit
Slide 5: Highly experienced and committed management team
flatexDEGIRO Corporate Presentation Highly experienced and committed management team Frank Niehage, LL.M. Muhamad Said Chahrour Dr. Benon Janos Stephan Simmang CEO Deputy-CEO and COO CFO Chief Technology Officer with flatexDEGIRO since: 2014 with flatexDEGIRO since: 2015 with flatexDEGIRO since: 201
Slide 6: High level financial overview
flatexDEGIRO Corporate Presentation High level financial overview Revenues (m EUR) EBITDA and Adjusted* EBITDA (m EUR) Net income and Adj.* Net income (m EUR) 183 177 418 407 incl. release of 106 SARs provisions 145 97 Adj.* Revenues 369 79 114 112 261 98 53 52 50 132 38 38 15 15 2019 2020 2021 2022
Slide 7: Commercial performance
flatexDEGIRO Corporate Presentation Commercial performance Gross customer additions (k) Assets under Custody (bn EUR) Transactions (m) 800 91 43.9 39.5 75 67 574 31.8 462 14.6 31 227 2019* 2020* 2021 2022 2019 2020 2021 2022 2019* 2020* 2021 2022 * pro forma, FY inclusion of DEGIRO 6
Slide 8: Our unique opportunity
Our unique opportunity 13 70
Slide 9: flatexDEGIRO – size, speed and dedication
flatexDEGIRO Corporate Presentation flatexDEGIRO – size, speed and dedication • Realization of our European growth strategy • Largest pan-European retail online broker in 18 countries • Cost and innovation leadership with complete value creation in- house • Improved and more extensive # 1 67m trades
Slide 10: The power of one integrated platform..
flatexDEGIRO Corporate Presentation The power of one integrated platform.. Standard online broker Risk KYC Tax Regulatory reporting IT/Banking system Cash accounts Margin loans Bank Outsourced Legal relationship Customer Commercial Broker Exchange(s) relationship Outsourced IT Processing Outsourced
Slide 11: ..allows for competitive edge in product innovation.
flatexDEGIRO Corporate Presentation ..allows for competitive edge in product innovation. Europe‘s leading financial supermarket platform Partners integrate with Stocks ETF Connect to European flatexDEGIRO customer potential of several million • Investment banks ETP Mutual funds • ETF provider • Fund
Slide 12: Leading user experience on an award winning platform
Leading user experience on an award winning platform flatex and DEGIRO with some of the highest app ratings in the industry
Slide 13: Strong focus on financial literacy
flatexDEGIRO Corporate Presentation Strong focus on financial literacy (Link German) (Link Dutch) (Link English) (Link Spanish) (Link French) (Link Italian) (Link Portuguese) The EU has identified financial literacy (together with increasing digitalisation) as one of the key initiatives to increase
Slide 14: Massive customer potential in Continental Europe..
flatexDEGIRO Corporate Presentation Massive customer potential in Continental Europe.. Underdeveloped G7 Developed brokerage markets Addressable 285m 111m population Digitalized 89% 97% Online banked 55% 86% Online brokerage 8% (23m people) 35% (40m people) Massive structural gap between developed (
Slide 15: ..driven by strong secular trends..
flatexDEGIRO Corporate Presentation ..driven by strong secular trends.. Listed household brands: “I can invest easily in companies that I like and use.“ A new generation with no negative bias: „What is the DotCom bubble?“ Increasing digitization: „I can invest and manage my wealth on my mobile phone
Slide 16: ..allows for two-folded growth.
flatexDEGIRO Corporate Presentation ..allows for two-folded growth. 285m people Addressable population Assuming penetration levels of developed 100m customers market markets (35%) Existing online brokerage Future new online brokerage customers customers flatexDEGIRO > 8% >55 years <25 years New incu
Slide 17: Claiming price leadership in Europe..
flatexDEGIRO Corporate Presentation Claiming price leadership in Europe.. • Incl. zero commission trading (+1.00 EUR flat handling fee for external costs1) • Transparent pricing, no hidden fees • No dependency on payment for order flow Core Markets : Growth Markets: Research Markets: NL, DE, AT FR,
Slide 18: ..outgrowing all major peers, while maintaining high customer quality..
flatexDEGIRO Corporate Presentation ..outgrowing all major peers, while maintaining high customer quality.. Customer accounts growth 2022 in k DARTs* per customer account 409 41 1 (20% growth rate) ( 6 average growth rate % ) 0,20 Organizationa l Off oardin -B g 11 7 B2 / 2 B B C Avanza 0,16 336 107
Slide 19: ..on normalised trading levels after the peak years 2020 & Q1/2021.
flatexDEGIRO 0 5 10 15 20 20 14 /Q 20 1 9.0 14 /Q 20 2 14 /Q 20 3 14 /Q 20 4 15 /Q Corporate Presentation (excl. CFD/Options/Futures/FX) 1 14.7 20 15 /Q 20 2 15 /Q 20 3 15 /Q 20 4 16 /Q 20 1 13.4 16 /Q 20 2 16 /Q 20 3 16 /Q 20 4 17 /Q 20 1 13.5 17 /Q 20 2 17 Transactions per customer account per qua
Slide 20: Excellent quality of loyal customer base drives future success
Excellent quality of loyal customer base drives future success 7
Slide 21: flatexDEGIRO provides its services to mature, highly educated and well-situated clients
flatexDEGIRO Corporate Presentation flatexDEGIRO provides its services to mature, highly educated and well-situated clients 73% of customers between 23-49 years old 30 trades in 2022 Increasingly female per cohort 19% 22% ~€ 4,800 16% 16% Average transaction volume in 2022 flatexDEGIRO 2019 2020 202
Slide 22: Loyal customer base with sustainable and increasing trading activity
flatexDEGIRO Corporate Presentation Loyal customer base with sustainable and increasing trading activity. Significant amount of additional trades delivered by new customers drives scalability. Number of trades 90m 80m Trades generated by “new” 70m customers, won over the last 3 years, basically equa
Slide 23: Loyal customer base with significantly growing trading revenue contribution
flatexDEGIRO Corporate Presentation Loyal customer base with sustainable and significantly growing trading revenue contribution. Significant amount of additional trading revenues by new customers with high operating leverage. Trade related revenues p.a. (€) “New” customers contributed approx. EUR 11
Slide 24: High activity levels of client base
flatexDEGIRO Corporate Presentation High activity levels of client base Customer activity per quarter Trades per active customer account / quarter 60% 1m 45,00 40,00 900k 35,00 30,00 50% 25,00 800k 20,00 15,00 700k 10,00 40% 5,00 600k 0 9 19 1 1 1 2 3 9 20 2 2 9 1 20 20 0 2 02 02 02 02 02 02 1 01 50
Slide 25: Translating growth into high, sustainable financial performance
Translating growth into high, sustainable financial performance 13 70
Slide 26: Super Capital Light Business..
flatexDEGIRO Corporate Presentation Super Capital Light Business.. Commissions Commission income 92% Securities: (expected 2023): ~ EUR 39.5 bn ~ EUR 265 m (Dec 2022) (~65 bps) Total Assets under Treasury portfolio Custody (~ EUR 2.3 bn) mostly overnight at ECB depository rate 8% Deposits: Interest
Slide 27: Conservative and secure deployment of customer cash under custody
flatexDEGIRO Corporate Presentation Conservative and secure deployment of customer cash under custody Assets under Custody Usage of deposits i uidity: vast majority* held as risk-free L q in 2022 cash deposits at German Federal Bank (Bundesbank) 1.124 @ ECB Cash overnight deposit Treasury ~ € 2.3 bn
Slide 28: Net cash inflows in 2022 of € 5.9 bn, of which 90% invested
flatexDEGIRO Corporate Presentation Net cash inflows in 2022 of € 5.9 bn, of which 90% invested Positive monthly inflows continuing despite ECB rate increases in € bn 13.4 -7.5 90% of net cash inflows got re-invested 5.9 5.2 -0.2 0.4 Cash inflows Cash outflows Net cash Net investments Delta Delta Ca
Slide 29: Solid capital structure, resolving BaFin findings to significantly increase CET1 ratio
flatexDEGIRO Corporate Presentation Solid capital structure, resolving BaFin findings to significantly increase CET1 ratio and Capital Surplus Capital Requirement Capital Structure P otential from resolving relevant BaFin findings* thereof D ecrease of RWA by € 376 m to € 933 approx. € 376 m Decreas
Slide 30: flatexDEGIRO AG - Our shareholder structure
flatexDEGIRO Corporate Presentation flatexDEGIRO AG - Our shareholder structure 18.9% Bernd Förtsch (flatex founder), including: 12.4% GfBK Gesellschaft für Börsenkommunikation mbH 5.0% Heliad Equity Partners 1.3% Bernd Förtsch 73.6% free float includin 109.9m shares 7.5% KipEi B.V. (DEGIRO founders
Slide 31: Contact
97 Contact Achim Schreck flatexDEGIRO AG Head of IR and Corporate Communications Mobile: +49 160 92774570 Address: Omniturm, Große Gallusstrasse 16-18 Phone: +49 69 450001 1700 60312 Frankfurt/Main, Germany Mail: [email protected] Website: www.flatexdegiro.com flatexDEGIRO AG Corporate