Flatexdegiro Se · XETR:FTK
Flatexdegiro — Investor Presentation (March 2022)
46 slides from Flatexdegiro's investor presentation, March 2022
Slide 1: Corporate presentation
56 flatexDEGIRO AG | March 2022 Corporate presentation
Slide 2: Disclaimer
flatexDEGIRO Corporate Presentation MArch Disclaimer Preliminary results 2021 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 measu
Slide 3: Europe's leading low cost broker with unrivaled platform and product offer
flatexDEGIRO Corporate Presentation March 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 licen
Slide 4: flatexDEGIRO at a glance
flatexDEGIRO Corporate Presentation March flatexDEGIRO at a glance Key Operating Metrics 2021 Revenue Model and Contribution Number of Markets Customer Employees accounts 18 countries >2m >1,100 Executed Executed Trade Assets under Trades (LTM) Volume Custody Online brokerage >91m >€350bn ~€44bn Cre
Slide 5: Highly experienced and committed management team
flatexDEGIRO Corporate Presentation March Highly experienced and committed management team Frank Niehage, LL.M. Muhamad Said Chahrour CEO CFO Jörn Engelmann Stephan Simmang Steffen Jentsch Christiane Strubel Giscard Monod de Froideville Chief Risk Officer Chief Technology Officer Chief Information O
Slide 6: Sustainable operational growth..
flatexDEGIRO Corporate Presentation march Sustainable operational growth.. Number of customer accounts (m) Number of transactions (m) Assets under Custody (€ bn) CAGR CAGR CAGR 43.9 ~ 55% 2.06 > 70% 91 > 70% 75 31.8 1.33 14.6 0.87 31 2019* 2020 2021 2019* 2020* 2021 2019 2020 2021 * pro-forma 5
Slide 7: ..paired with outstanding profitability.
flatexDEGIRO Corporate Presentation March ..paired with outstanding profitability. Revenues (€ m) Adj. EBITDA pre marketing (€ m) Adj. EBITDA (€ m) CAGR 418 CAGR 223 CAGR 177 > 75% > 110% > 115% 114 138 261 132 50 38 2019 2020 2021 2019 2020 2021 2019 2020 2021 6
Slide 8: Our unique opportunity
Our unique opportunity 13 70
Slide 9: flatexDEGIRO – size, speed and dedication
flatexDEGIRO Corporate Presentation March 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 91m
Slide 10: The power of one integrated platform..
flatexDEGIRO Corporate Presentation March 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 Outso
Slide 11: ..allows for competitive edge in product innovation.
flatexDEGIRO Corporate Presentation March ..allows for competitive edge in product innovation. Europe‘s leading financial supermarket platform Partners integrate with Stocks ETP Connect to European flatexDEGIRO customer potential of ETF Mutual funds several million • Investment banks • ETF provider
Slide 12: Lead in Offering: 'next 3.0' - from pull to push
flatexDEGIRO Corporate Presentation March Lead in Offering: ‘next 3.0’ - from pull to push Insourced banking and IT allows for use of big data! Convenience Value Ubiquity 11
Slide 13: True stories of investing
flatexDEGIRO Corporate Presentation March True stories of investing Our mission is to make investing accessible to everyone who wants to shape their own financial future in a smart and responsible way. We do this with a high-quality, user-friendly and cost-efficient investment platform, but also wit
Slide 14: Massive customer potential in Continental Europe..
flatexDEGIRO Corporate Presentation March 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 devel
Slide 15: ..driven by strong secular trends..
flatexDEGIRO Corporate Presentation March ..driven by strong secular trends.. 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.“ Negative interest environment: „Saving accounts don‘t generate capital g
Slide 16: ..allows for two-folded growth.
flatexDEGIRO Corporate Presentation March ..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 > 5% >55 years <25 years Ne
Slide 17: With Europe's leading zero/low-cost brokerage offer..
flatexDEGIRO Corporate Presentation March €0 With Europe's leading zero/low- €0 cost brokerage offer.. €0 • Zero commission US trading on NASDAQ and NYSE €0 in all DEGIRO markets €0 • Zero commission trading on leading exchanges in €0 €0 €0 most important growth markets €0 • Trading directly on top
Slide 18: ..we showed strong growth in all geographies..
flatexDEGIRO Corporate Presentation march ..we showed strong growth in all geographies.. Core Markets : Growth Markets: Research Markets: NL, DE, AT FR, ES, PT, IT, CH, UK, IE DK, NO, SE, FI,PL, CZ, HU, GR Customer accounts Dec 2021: 1.30m Customer accounts Dec 2021: 0.67m Customer accounts Dec 2021
Slide 19: ..outgrowing all major peers, while maintaining high customer quality.
flatexDEGIRO Corporate Presentation March ..outgrowing all major peers, while maintaining high customer quality. New customer growth 2021 Trades per costumer (annualised) Sum 1.098k (+19%) 55 380k Nordnet (+31%) 50 46 45 43 46 42 40 41 40 380k Avanza (+30%) 35 37 35 34 >730k 30 (+55%) 200k 25 Hargre
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 march flatexDEGIRO provides its services to mature, highly educated and well-situated clients 70% of customers between 23-49 years 54 trades in 2021 old Increasingly female per cohort 16% 16% 19% ~€ 2,500 14% Average order volume in 2021 flatexDEGIRO 2018 2019 202
Slide 22: Stable contribution of each cohort, stellar growth over the last 24 months
flatexDEGIRO Corporate Presentation March Stable contribution of each cohort, stellar growth over the last 24 months Long-term revenue contribution of cohorts Trade related revenues p.a. (€ m) Cohorts 350 2021 300 2020 250 2019 200 2018 2017 150 2016 100 2015 50 <= 2014 - 2018 2019 2020 2021 21
Slide 23: Share of medium-active customers increased significantly over time
flatexDEGIRO Corporate Presentation march Share of „medium-active“ customers increased significantly over time Share of trades per customer account in relation to total trades of active customers 3% 2% 9% 8% 8% 9% 12% 2018 49% 13% 2021 45% 40% 45% 2% 20% 22% 1-10 11-25 26-50 51-100 101-500 >500 22
Slide 24: Increasing share of high-value customers visible in AuC development
flatexDEGIRO Corporate Presentation march Increasing share of high-value customers visible in AuC development Share of AuC per customer account in € in relation to total number of funded accounts and ARPU in 2021 €44 21% 23% €612 31% 31% €44 2018 6% 2021 7% 7% 7% €55 11% 11% 11% 12% 10% €140 11% €74
Slide 25: AuC of customers growing steadily with age..
flatexDEGIRO Corporate Presentation march AuC of customers growing steadily with age.. Average AuC in € Share of total customers 90k 5.00% 80k 4.50% 4.00% 70k 3.50% 60k 3.00% 50k 2.50% 40k 2.00% 30k 1.50% 20k 1.00% 10k 0.50% 0 0.00% 20 25 30 35 40 45 50 55 60 65 70 75 80 Average AUC (31.12) Share of
Slide 26: .. in line with annual revenue contribution.
flatexDEGIRO Corporate Presentation march .. in line with annual revenue contribution. ARPU in € Share of total customers 700 5.00% 4.50% 600 4.00% 500 3.50% 3.00% 400 2.50% 300 2.00% 200 1.50% 1.00% 100 0.50% 0 0.00% 20 25 30 35 40 45 50 55 60 65 70 75 80 Average revenue 2021 Share of new customers
Slide 27: High activity levels of client base
flatexDEGIRO Corporate Presentation march 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 9 9 9 0 0 0 0 1 1 1 1 02 02 02 02 01 01 01 01 02 02 02
Slide 28: Retaining the right customers 2021 - low churn on all metrics
flatexDEGIRO Corporate Presentation March Retaining the right customers LTM trading activity of leavers very significantly below average trading activity in the year 75 2021 - low churn on all metrics 56 54 Churned* Customer accounts 45 ~ 50k (2.5%) Churned* Trades 29 (LTM before churn) -35% 23 1.2m
Slide 29: Translating growth into high, sustainable financial performance
Translating growth into high, sustainable financial performance 13 70
Slide 30: Super Capital Light Business..
flatexDEGIRO Corporate Presentation march Super Capital Light Business.. Commissions Commission income: 93% Securities: EUR 340 m EUR 41.0 bn (96 bps) Total Assets under Liquidity portfolio Future opportunity given potential interest increases Custody (~ EUR 1.5 bn) 7% Deposits: EUR 2.8 bn 84% margi
Slide 31: ..with high quality credit book.
flatexDEGIRO Corporate Presentation march ..with high quality credit book. AuC in 2021 Usage of deposits deposits Credit book book 1.344 (€ m) (€ m) 220 1.495 Liquidity €44 bn 297 1.098 93% Securities 7% 1.124 Deposits Margin 1.344 603 loans 900 Credit 2020 2021 2020 2021 Credit losses 0.03% Credit
Slide 32: Efficiency indicators
flatexDEGIRO Corporate Presentation march Efficiency indicators Revenue by income type Revenue Margin by Product* (in € m) 19 (in bsp) 59 17 250 242 242 37 340 286 35 26 200 12 15 85 90 2018 2019 2020 2021 153 Commisions Interests Others 150 132 118 Assets under Custody by Product (in € bn) 3 94 100
Slide 33: Trading activity adds to long term growth - but doesn't determine it
flatexDEGIRO Corporate Presentation march Trading activity adds to long term growth - but doesn’t determine it Vision 2026 2022(e) 250m-350m 95m-115m (@40 trades/customer account p.a.) 350 (@40-45 trades/customer account p.a.) Trades at baseline 300 trading activity of 2021 40 trades/customer accoun
Slide 34: Revenues per trade on the rise..
flatexDEGIRO Corporate Presentation march Revenues per trade on the rise.. Immediate upside potential -DEGIRO goes ZERO (Dec 2021) -ETP Partnership (Dec 2021) €4.59 -Early & Late Trading (Aug 2021) Medium-term dilution €4.41 -Through profitable international growth €4.27 €4.02 General level assumed
Slide 35: ..with prudent savers & investors.
flatexDEGIRO Corporate Presentation march ..with prudent savers & investors. AuC share by product Revenue share by product 3% 4% 5% 5% 25% 23% 2021 2021 68% 67% Stocks ETF ETP Other 34
Slide 36: Attractive pricing with high incremental margins..
flatexDEGIRO Corporate Presentation march Attractive pricing with high incremental margins.. Schematic, based on 2021 figures Marketing Revenue per trade leading to annual wins trades ø 54 x at revenues .. Customer CAC p.a. €58 €4.59 Incremental EBITDA margin EBITDA contribution €250 €200 per custom
Slide 37: ..makes loyal customer base so highly valuable.
flatexDEGIRO Corporate Presentation march ..makes loyal customer base so highly valuable. Average lifetime customer value (total revenues) in relation to acquisition costs • Low customer acquisition costs driven • High loyalty and stickiness result in • Superb scalability of busines model by online
Slide 38: Vision 2026
Vision 2026 30
Slide 39: Increasing customer base x4 and tripling settled transaction
flatexDEGIRO Corporate Presentation march Increasing customer base x4 and tripling settled transaction Customer accounts Transactions (in m) (in m) CAGR +30% CAGR +20% 7-8 250-350* +30-40% 2.7-2.9 95-115 91 2.06 2021 2022(e) 2026 2021 2022(e) 2026 (Vision) (Vision) * in a year with low market volati
Slide 40: Revenue opportunity of up to €1.5bn p.a.
flatexDEGIRO Corporate Presentation march Revenue opportunity of up to €1.5bn p.a. Schematic up to €1.5bn CAGR +20-25% €417m >€1bn incremental revenues 2019 2020 2021 2026 (vision) 39
Slide 41: Profitable growth results in profitability growth
flatexDEGIRO Corporate Presentation march Profitable growth results in profitability growth 1 Adjusted EBITDA margin Doubling profitability 29% 44% 44% >60% (38% pre marketing) (53% pre marketing) (55% pre marketing) 2019 2020 2021 2026 (Vision) 1 Adjusted for long-term incentive plan 40
Slide 42: Capital Allocation
flatexDEGIRO Corporate Presentation march Capital Allocation • Invest in markets Organic growth • Invest in platform and products investments • Maintain sustainable capitalization • High quality sector targets or Sensible verticalization acquisition • Opportunities that accelerate customer expected
Slide 43: Our 2026 Vision
flatexDEGIRO Corporate Presentation march Our 2026 7-8m 250-350m Vision Customer accounts Minimum Transactions 1 Extending our position as Europe's leading online broker. €1.5bn Revenue (up to) >60% Adjusted EBITDA Margin 2 >€1.5bn Accumulated Operating Cash Flow (2022-2026) 1 In a year of low marke
Slide 44: flatexDEGIRO AG - Our shareholder structure
flatexDEGIRO Corporate Presentation march flatexDEGIRO AG - Our shareholder structure 12.8% GfBK Gesellschaft für Börsenkommunikation mbH 5.2% Heliad Equity Partners 1.4% Bernd Förtsch 67.2% free float 109.8m shares 7.5% KipEi B.V. includes ca. 4% held by management incl. outstanding* exercised opti
Slide 45: Financial calendar 2022
Financial calendar 2022 2022 29 March Annual report 2021 26 April Q1 / 2022 Interim Management Statement 17 May Annual General Meeting 30 August H1 / 2022 Financial Report 25 October Q3 / 2022 Interim Management Statement 44
Slide 46: Contact
97 Contact Achim Schreck flatexDEGIRO AG Head of IR and Corporate Communications Mobile: +49 160 92774570 Address: Rotfeder-Ring 7 Phone: +49 69 450001 1700 60327 Frankfurt/Main, Germany Mail: [email protected] Website: www.flatexdegiro.com flatexDEGIRO AG Corporate Presentation March 2