Hypoport Se · XETR:HYQ
Hypoport — FY2019 Earnings Presentation
40 slides from Hypoport's earnings presentation, Mar 9, 2020
Slide 1: Hypoport AG Preliminary results for 2019
Hypoport AG Preliminary results for 2019
Slide 2: Our mission: digitalising credit, real estate and insurance industries
Our mission Digitalising the credit, real estate and insurance industries Credit Industry Real Estate Industry Insurance Industry Hypoport AG, vorläufiges Ergebnis 2019 2
Slide 3: Hypoport – a network of technology companies
Hypoport – a network of technology companies The four segments of Hypoport STAR- BAUFI POOL QUALITY NEX POOL GENO Insurance Industry PACE Credit Industry FINMAS SMART INSURTECH EUROPACE funding- REM port CAPITAL VALUE AG FIO DR. KLEIN PRIVATE CLIENTS DR. KLEIN WOWI PRoM MiSe Private clients Real Est
Slide 4: Hypoport – clearly ahead of the market
Hypoport – clearly ahead of the market Preliminary results for 2019 & forecast for 2020 Key figures for 2019 (yoy change) • Revenue: €337.2 million (+27%) • Gross profit: €181.9 million (+30%) • EBIT: €33.0 million (+13%) • EPS: €3.90 (+7%) Hypoport & markets overall (yoy change) • Credit Platform r
Slide 5: Hypoport – strong basis for further growth
Hypoport – strong basis for further growth Areas of capital expenditure with an impact on earnings in 2019 Credit Platform (level of investment: €€€) Private Clients (level of investment: €) • Substantial increase in key account resources for regional • Investment in the digitalisation of advisory p
Slide 6: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 7: Huge excess demand in the housing market
Huge excess demand in the housing market Factors influencing the German housing market Net inward migration Excess New Life demand Property mortgage expectancy (1.1–1.9 million prices homes) finance business One-person households Rentals Regulation of Marketed New builds housing industry properties
Slide 8: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 9: Credit Platform: Business model & results
Credit Platform Business model & results STAR BAUFI POOL QUALITY NEX POOL GENO PACE Credit industry FINMAS EUROPACE funding- REM port CAPITAL Hypoport AG, vorläufiges Ergebnis 2019 9
Slide 10: Credit Platform business model
Credit Platform Business model End consumers / Advisors Poolers B2B online credit Product suppliers companies marketplace Online comparison Private sites commercial banks Other advisors Insurance EUROPACE Dr. companies Klein Quality- pool Star- pool Savings Baufi- banks nex FINMAS Other poolers Coop
Slide 11: EUROPACE clearly outperforms the market once again
EUROPACE clearly outperforms the market once again Credit Platform: EUROPACE transaction volume • Transaction volume per sales day* reached a record level of Volume of transactions (€ billion)** €272 million (+18% yoy) in 2019. The Q4 figure was even +18% CAGR: +16% higher at €287 million (+18% yoy)
Slide 12: EUROPACE has huge potential for growth
EUROPACE has huge potential for growth Mortgage finance in Germany and EUROPACE's share Distribution channels and EUROPACE's GENOPACE (for cooperative banks)* share* CAGR: +61% +162% Cooperative Brokers banks 4.3 4.3 ~25% ~30% ~50% 1.0 1.2 1.6 1.6 ~5% 2016 2017 2018 2019 2018 2019 ~33% ~7% FINMAS (f
Slide 13: Substantial growth secures market leadership
Substantial growth secures market leadership Credit Platform: revenue, gross profit and earnings Revenue (€ million) +22% • There was growth in all four distribution channels (financial 141.5 product distributors, private commercial banks, 115.5 cooperative institutions, savings banks). • EBIT rose
Slide 14: Private Clients: Business model & results
Private Clients Business model & results DR. KLEIN PRIVATE CLIENTS VER- GLEICH .DE Private Clients Hypoport AG, vorläufiges Ergebnis 2019 14
Slide 15: Private Clients business model
Private Clients Business model Consumers Lead generation via… Advisors Access via… Product suppliers Private commercial Google banks Insurance Dr. Klein companies Vergleich.de EUROPACE franchise system FINMAS Savings banks DrKlein.de website GENOPACE Cooperative banks Hypoport AG, vorläufiges Ergebn
Slide 16: Gain in market share for Dr. Klein private clients
Gain in market share for Dr. Klein private clients Private Clients: volume of loans brokered and number of advisors Volume of new loans brokered (€ billion)* • Market share increased again thanks to a sharp rise in the CAGR: +22% +14% volume of new loans brokered (+14%) • The customer base is expand
Slide 17: Record revenue in the Private Clients segment
Record revenue in the Private Clients segment Private Clients: revenue, gross profit and earnings +21% • Revenue rose sharply compared with 2018, thanks to an Revenue (€ million) increased volume of new loans brokered, and exceeded the 104.6 86.5 €100 million mark for the very first time. • After a
Slide 18: Real Estate Platform: Business model & results
Real Estate Platform Business model & results EUROPACE VALUE AG FIO DR. KLEIN WOWI PRoM MiSe Real-estate industry Hypoport AG, vorläufiges Ergebnis 2019 18
Slide 19: Creation of a 'platform for housing'
Creation of a 'platform for housing' Real Estate Platform – business model Housing industry Credit industry Property financing Property valuation platform platform Property Property sales management platform Platform (ERP) Hypoport AG, vorläufiges Ergebnis 2019 19
Slide 20: Reticence due to political discourse
Reticence due to political discourse Real Estate Platform: property financing platform New business volume brokered through the property • The business model consists of loan brokerage for the financing platform -12% German housing industry (€ billion) 1.9 • Market environment is challenging due to
Slide 21: A successful year for FIO
A successful year for FIO Real Estate Platform: property management platform and property sales platform Market share of FIO Vermarktung • The business model consists of the development of Savings banks Cooperative banks software solutions for the sale and management of 385 378 873 ~840 properties i
Slide 22: Systematic integration of partners through cross-selling
Systematic integration of partners through cross-selling Real Estate Platform: property valuation platform Potential synergies of EUROPACE partners for • The business model consists of integrated property valuations VALUE AG 706 for the lending banks, i.e. for EUROPACE product partners 618 • Revenue
Slide 23: Strong revenue growth and further capital expenditure
Strong revenue growth and further capital expenditure Real Estate Platform: revenue, gross profit and earnings • Segment revenue grew thanks to the overall healthy (in Revenue (€ million) +47% some respects excellent) operating performance of the 50.1 platforms for the management, marketing and valu
Slide 24: Insurance Platform: Business model & results
Insurance Platform Business model & results QUALITY POOL Insurance industry SMART INSURTECH Hypoport AG, vorläufiges Ergebnis 2019 24
Slide 25: Insurance Platform business model
Insurance Platform Business model End customer Distributors Poolers B2B Product suppliers lending marketplace Insur Insur apps apps Other advisors Other brokers Dr. Klein DR. KLEIN SMART INSUR Insurance Quality- SMART INSUR pool companies Other poolers Advisors in bank branches Hypoport AG, vorläufi
Slide 26: Value creation through integration within the sector
Value creation through integration within the sector Insurance Platform: revenue, gross profit and earnings • The transition to growth is resource-intensive but Revenue (€ million) +38% progressing well and unlocking the anticipated synergies. 42.6 30.9 • Large broker organisations and broker pools
Slide 27: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 28: Hypoport Group generates strong growth
Hypoport Group generates strong growth Overview of Hypoport's key performance indicators Growth (€ million) Earnings (€ million) 337.2 52.2 266.0 39.1 EBITDA Revenue +34% +27% EBIT 33.0 29.3 +13% Gross EAT profit 181.9 +9% 140.2 22.5 24.4 +30% 2018 2019 2018 2019 Hypoport AG, vorläufiges Ergebnis 20
Slide 29: 20 years as a growth company
20 years as a growth company Long-term changes in revenue and EBIT Established Start-up Upscaling and expansion despite fin. crisis Revenue (€ million) 337 266 4 26 98 1999 2006 2013 2018 2019 EBIT (€ million) 29 33 2 6 4 1999 2006 2013 2018 2019 Hypoport AG, vorläufiges Ergebnis 2019 29
Slide 30: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 31: Market capitalisation of around €2 billion
Market capitalisation of around €2 billion Shareholder structure and share information Breakdown of shareholders as at 29 February 2020 KPIs and indices KPI DETAILS VALUE Ronald Slabke (CEO) Treasury shares EPS Earnings per share in 2019 €3.90 Free float of which > 5% held by Union Investment, > 3%
Slide 32: Contents
Contents 1. Market environment 2. Key performance indicators for the segments 3. Overview of key performance indicators 4. Shareholder structure and share information 5. Investment highlights and outlook Annex
Slide 33: Investment highlights
Investment highlights +25% 2.2 REVENUE GROWTH MODERATE DEBT LEVEL CAGR 5 years gross debt / 12M EBITDA +33% 20+ EBIT INCREASE YEARS CAGR 5 years of experience with platform- based business models 10+ 83% ACQUISITIONS OUR EMPLOYEES in 5 years are satisfied or even very satisfied with Hypoport as an e
Slide 34: Forecast for 2020
Forecast for 2020 For 2020, Hypoport anticipates revenue of between €400 million and €440 million and EBIT of €35 million to €40 million. Hypoport AG, vorläufiges Ergebnis 2019 34
Slide 35: Contact
Contact Christian Würdemann Jan H. Pahl Hypoport AG Head of Group Operations Investor Relations Manager Klosterstrasse 71 Tel: +49 (0)30 420 860 Tel: +49 (0)30 420 861 942 10179 Berlin Email: ir(at)hypoport.de Email: ir(at)hypoport.de Germany Hypoport AG, vorläufiges Ergebnis 2019 35
Slide 36: Disclaimer
Disclaimer This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice and perform their own analysis regarding the appropriateness of investing in any of our securities. While Hyp
Slide 37: Annex
Annex Hypoport AG, vorläufiges Ergebnis 2019 37
Slide 38: Share price rises sharply
Share price rises sharply Share price since the date of joining the SDAX (daily closing price, Xetra, €) HYQ SDAX 320 310 300 36.000 290 280 33.000 270 260 250 30.000 240 230 27.000 220 210 200 24.000 190 180 21.000 170 160 150 18.000 140 130 15.000 120 110 100 12.000 90 80 9.000 70 60 50 6.000 Dec
Slide 39: Hypoport's investor relations activity
Hypoport's investor relations activity Investor events, professional analysts' assessments, awards Recommendatio Target Recent IR events ANALYST Date n price Conference Lyon Jan 2020 Bankhaus Metzler Hold €360.00 5 Mar 2020 Conference London Dec 2019 Conference Berlin Nov 2019 Berenberg Buy €380.00
Slide 40: Mortgage finance – a high-potential market
Mortgage finance – a high-potential market Factors influencing the private and institutional residential real-estate finance markets Negative factors Positive factors • Lack of available properties • Strong pent-up demand in and from rental market Finance for OWNER- • High ancillary purchasing costs