Annual General Meeting 24 June 2022
This translation is furnished for information purposes only. The original German version is binding.
Redefining Digital Investing
wallstreet:online Offers a Comprehensive Digital Finance and Investment Platform for Private Investors
Transaction: Smartbroker
WSO operates the largest next generation broker by assets under custody in Germany
The largest publisher-independent financial portal operator
Host of the largest finance community across German-speaking Europe
20+yrs market experience | 100% digital | Comprehensive product offering | In-house development
Highlights 2021 (1/2)
Another Record Year Adds to the Group's Consistently Strong Performance
- New revenue record | 82% revenue growth to €51.4 million in 20211 , with 63% of the growth coming from the transaction segment and 37% from the media business
- Doubled securities accounts and assets under custody | >120.000 new accounts in 2021; €8.8bn assets under custody at the end of 2021
- Reach expansion for the media portals
- Capital increase | €19m capital increase closed in June 2021
Highlights 2021 (2/2)
Significant Progress Made in the Development of Smartbroker 2.0 & the Professionalisation of the Organisation
- Smartbroker 2.0 development | Kicked off internalisation of the brokerage infrastructure
- Applied for extension of the existing BaFin licence to cover further securities services
- Established clear majority in the Smartbroker operating company wallstreet:online capital AG | Completed the squeeze-out to achieve 100% shareholding in 2022
- Organisational development | Matthias Hach became CEO & Chairman of the Board of wallstreet:online AG as well as CEO of wallstreet:online capital AG Roland Nicklaus became CFO of wallstreet:online AG
- Strengthened internal structures through the expansion of management levels and the recruitment of more than 40 new employees (mainly in the areas of compliance, governance, finance and IT)
Media Unit Forms Strong Revenue and Profitability Basis Enables the Self-Financed Development of the Smartbroker Platform
Initiatives 2022 to Strengthen the Further Momentum of the Media Business
- New paid-services & video editorial team starting in Q3 2022
- The newly created wallstreet:online Publishing GmbH bundles all of the group's journalistic offerings
- Introduction of the Community Stream at wallstreet:online
- Relaunch of the Ariva apps
- Realisation of synergies by linking Ariva data to Finanznachrichten.de and Börsennews.de → Ariva to become the group's central data hub
Operational KPIs 2021 Brokerage Accounts & Assets More Than Doubled – Media Reach Also Expanded
Smartbroker Classic Transaction
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Classic transaction = Fondsdiscount & wallstreet:online capital offering
2021 Pro Forma Group Revenue Over-achieved Guidance – Growth Stemming from Both Business Units
Revenues, in €m Revenue growth by segment, in €m
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2021: Pro forma figures based on the management information system, wallstreet:online capital AG fully consolidated as of 1 Jan 2021
2021 Pro Forma Group Profitability
Targeted Investment Enabled the Creation of >120,000 New Securities Accounts
Operational EBITDA, in €m Targeted investment into Smartbroker client growth, in €m
Fulfilled guidance – Self-financing Smartbroker customer growth
CAC = client acquisition cost | 2021: Pro forma figures based on the management information system, wallstreet:online capital AG fully consolidated as of 1 Jan 2021
Guidance 2022 25% Revenue Growth at ~55k New Securities Accounts in 2022
Laying foundations for vastly improved business model
2021: Pro forma figures based on the management information system, wallstreet:online capital AG fully consolidated as of 1 Jan 2021 | B: budgeted, according to current company guidance | CAC: client acquisition cost
Market & Competition
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28m Securities Accounts in Germany
Smartbroker is the Only Full-Service Broker with €0 fees
German Households' Financial Assets Grow by 6% p.a. Investments in Listed Equities & Funds Growing at Double this Rate
Total financial assets of German households, in €bn, 2021E
Source: Deutsche Bundesbank, data as of Q3 2021 | Company websites, own research, Oliver Wyman 2021 | CAGR. 2015-2021 OECD 2021 data | Smartbroker market share based on assets under custody, company estimate
German Households' Financial Assets Grow by 6% p.a. Investments in Listed Equities & Funds Growing at Double this Rate
Total financial assets of German households, in €bn, 2021E
Source: Deutsche Bundesbank, data as of Q3 2021 | Company websites, own research, Oliver Wyman 2021 | CAGR. 2015-2021 OECD 2021 data | Smartbroker market share based on assets under custody, company estimate
Market Pricing Remains Largely Stable Zero-fee Commissions Enable Broad Access to Capital Markets
Approximate trading costs of select German brokers, in €
Broad Banks Maintain high commissions as long as possible
XO-Focussed Wait and see what happens to customer base before lowering fees
Start-ups Disrupt market by changing low (zero) commissions, and earning revenue from other sources
Commissions based on hypothetical investment of EUR 5,000 | Source: ExtraETF 2022, broker websites
Smartbroker
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Germany's Leading Next Generation Broker by Assets under Custody
Award-Winning Neo Broker for Private Investors & Savers
Germany's ONLY full-service broker with zero fees
- Trade virtually all securities licensed in Germany on all German exchanges
- Permanently from €0 transaction fees
- Zero securities account fee, free savings plans
- Virtually all funds without issue premium
- Large selection of international trading venues, incl. Nasdaq, NYSE, LSE
- Derivatives trading starting from €0 Premium partners: Morgan Stanley, HSBC, UBS and Vontobel
Award-winning Next Generation Broker
- Smartbroker received the rating "Very Good" in the Handelsblatt ranking of the best online brokers 2022
- In the current Zertifikate Awards, Smartbroker took 3rd place among the best online brokers in the readers' choice ranking 2021 / 2022
- Smartbroker ranked 3rd (out of 14 tested brokers) in the study by the German Society for Consumer Studies on the best ETF brokers in 2022 in terms of pricing, offering, transparency and service
- Smartbroker is the cheapest provider on the market According to "Finanztest", part of the renowned not-for-profit "Stiftung Warentest" consumer advocate group (Issue 12/2021)
Smartbroker Status Quo
Current Cooperation with Partner Bank is Limiting Further Growth
- 200,000 securities accounts (as of year-end 2021)
- Existing, successful cooperation model, however with
- → Fixed margin per trade no scalability
- → Restrictions regarding product development
- → Dependency (e. g. no mobile app, no integration into our media portals)
Despite its significant success & popularity, Smartbroker falls short of its potential
Hence the decision to build our own brokerage infrastructure
Smartbroker 2.0 Creates Scalability & Innovation Power Extended Licence | Own Platform | Own Technology
Unique Foundation for Smartbroker 2.0 Linking Information And Transaction
Min. 40% reach among the execution-only investors in German-speaking Europe
Only Full-Service Online Broker with €0 fees
Reach based on estimated 5m execution-only investors in 2021, source: Oliver Wyman 2021
Timeline for the Implementation of Smartbroker 2.0 To be Launched in H2 2022
| Mid 2021 |
▪
Application for BaFin licence extension submitted
▪
Kicked-off development of own technology platform |
| Mid 2022 |
▪
Name change of wallstreet:online AG to Smartbroker Holding AG |
| H2 2022 |
▪
Smartbroker 2.0 launch
▪
Onboarding of new customers onto the new system |
| H1 2023 |
▪
Migration of existing customers onto the Smartbroker 2.0 platform |
| 2023 |
▪
Integration of Smartbroker 2.0 into our media portals & apps
▪
API-capacity |
Smartbroker 2.0 Brand New Customer Experience & State-of-the-Art Functionality
Comprehensive product as per Smartbroker standard
▪ All shares, all ETFs, all funds, all derivatives, all stock exchanges
PLUS important additions & innovations
- Smartbroker app & new web interface
- New products: e. g. crypto trading
- New client groups
EQUALS
- Best offer on the German online broker market
- First provider to combine transaction with content & community in one product
Commercial Impact of Smartbroker 2.0
Establishing a Greatly Improved Business Model for the Brokerage Segment
Long-term Value Creation for All Stakeholders is at the Heart of our Corporate Strategy
Our Product Strategy
Establishing price leadership in personal investing
- Deliberately waiving retail fees for the benefit of our clients
- Made possible by re-evaluating market dynamics, lean cost structure, digital first products
- FondsDiscount revolutionised the funds market in 2004 with the introduction of zero per cent issue premia
- Smartbroker draws from this decades-long experience
Disrupting the brokerage and personal investment markets
Full-service broker at the most favourable conditions
Our Finance Strategy Efficient use of capital
- We are proud of our history of profitable growth and cash generation
- Self-financing of expansion & new products
- Re-invest media business cash flows into value-added growth in the transaction business
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wallstreet:online AG Ritterstr. 11 | 10969 Berlin
[email protected]
About | The wallstreet:online Group operates Smartbroker - a multiple award-winning online broker, which is the only provider in Germany to combine the extensive product range of traditional brokers with the extremely favourable conditions of neo brokers. At the same time, the Group operates four high-reach stock market portals (wallstreetonline.de, boersenNews.de, FinanzNachrichten.de and ARIVA.de). With several hundred million monthly page impressions, the Group is the by far largest publisher-independent financial portal operator in Germanspeaking countries and hosts the largest finance community.