AI Terminal
Smartbroker Holding AG
Investor Presentation • May 16, 2022
4535_ip_2022-05-16_c8e5875e-4052-46c6-ab48-98cf058c4b72.pdf
Investor Presentation
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Results Presentation
FY2021 Financials & Outlook 2022
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 Smartbroker. By attending this presentation and/or reviewing the slides you agree to be bound by the following conditions. The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This presentation is for information purposes only and the information contained herein (unless otherwise indicated) has been provided by wallstreet:online. It does not constitute an offer to sell or the solicitation, inducement or an offer to buy shares in wallstreet:online or any other securities. Further, it does not constitute a recommendation by wallstreet:online or any other party to sell or buy shares in wallstreet:online or any other securities and should not be treated as giving investment, legal, accounting, regulatory, taxation or other advice. This presentation has been prepared without reference to any particular investment objectives, financial situation, taxation position and particular needs. In case of any doubt in relation to these matters, you should consult your stockbroker, bank manager, legal adviser, accountant, taxation adviser or other independent financial adviser. The information contained in this presentation has not been independently verified, and no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information contained herein and no reliance should be placed on it. To the extent permitted by applicable law, none of wallstreet:online or any of its affiliates, advisers, connected persons or any other person accept any liability for any loss howsoever arising (in negligence or otherwise), directly or indirectly, from this presentation or its contents or otherwise arising in connection with this presentation. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements contained herein that are not statements of historical fact may be deemed to be forward-looking information. When we use words such as "plan," "believe," "expect," "anticipate," "intend," "estimate," "may" or similar expressions, we are making forward-looking statements. You should not rely on forward-looking statements because they are subject to a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from those indicated. These factors include, but are not limited to, the following: (i) market risks: principally economic price and volume developments; (ii) dependence on performance of major customers and industries, (iii) our level of debt, management of interest rate risk; (iv) costs associated with regulation relating to providing financial services; (v) inflation, interest rate levels and fluctuations in exchange rates; (vi) general economic, political and business conditions and existing and future governmental regulation; and (vii) the effects of competition. Any assumptions, views or opinions (including statements, projections, forecasts or other forward-looking statements) contained in this presentation represent the assumptions, views or opinions of wallstreet:online as of the date indicated and are subject to change without notice. wallstreet:online neither intends, nor assumes any obligation, unless required by law, to update or revise these assumptions, views or opinions in light of developments which differ from those anticipated. All information not separately sourced is from internal company data and estimates. Any data relating to past performance contained herein is no indication as to future performance. The information in this presentation is not intended to predict actual results, and no assurances are given with respect thereto. 1 2 3 4
Redefining Digital Investing Unique Combination of Digital Brokerage & Relevant Financial Information
Transaction: Smartbroker
The largest neo broker operator by assets under custody in Germany
Media
The largest publisher-independent financial portal operator
Host of the largest finance community across German-speaking Europe
One of Germany's leading digital personal finance and investment platforms – across most asset classes and investment strategies.
20+yrs market experience | 100% digital | No stores – no hidden costs | Full service | Leading by technology | In-house development
2021 Financial Statements Basis of Preparation
- Consolidated and Single-Entity Accounts based on German HGB
- Unqualified audit opinions received from EY
- Main audit activities were conducted by EY during March to May 2022
- Key audit areas: audit of wallstreet:online capital AG (by KPMG), initial full consolidation, revenue recognition, fixed assets (Smartbroker), carrying amounts of investments
- Proforma figures 2021: wallstreet:online capital AG fully consolidated as of 1 January 2021 (values based on management information system) Audited financial statements: wallstreet:online capital AG fully consolidated as of 1 August 2021 (HGB)
- Material entities include: wallstreet:online capital AG (Smartbroker operator), wallstreet:online AG, Ariva AG, ABC New Media AG, Markets Inside Media GmbH
2021 Pro Forma Revenue Split & Operational KPIs Brokerage expanding share to over 30%
| in €m | 2021 | 2020 | Change in % |
|---|---|---|---|
| Revenue | 51.4 | 28.2 | +82% |
| thereof Media | 35.5 | 26.9 | +32% |
| thereof Transaction | 15.9 | 1.3 | n/a |
| 2021 | 2020 | Change in % | |
|---|---|---|---|
| Brokerage accounts (in k) | 246 | 117 | +110% |
| Assets under custody (in €bn) | 8.8 | 4.3 | +105% |
| Ø Assets under custody per account (in €k) | 36 | 37 | (3%) |
| Ø Trades per account | 29 | 29 | - |
2021 Pro Forma Expenses
6
Marketing and Personnel are main cost drivers – to expand and support business
| in €m | 2021 | 2020 | Change in % |
|---|---|---|---|
| Revenue | 51.4 | 28.2 | +82% |
| Other Operating Income | 0.9 | 0.3 | +200% |
| Data & IT Costs | (8.9) | (5.4) | +67% |
| Marketing | (15.4) | (8.1) | +90% |
| Personnel | (15.8) | (8.0) | +97% |
| Other | (7.7) | (2.5) | +227% |
| Non-recurring Items | (0.5) | 3.0 | n/a |
| EBITDA | 3.9 | 7.5 | (48%) |
| add back/ (deduct): Non-recurring Items | 0.5 | (3.0) | n/a |
| Operational EBITDA | 4.4 | 4.5 | (2%) |
| Add back: Smartbroker Customer Acquisition Cost | 13.1 | 7.5 | +74% |
| Operational EBITDA before CAC | 17.5 | 12.0 | +45% |
2021 Consolidated Profit & Loss Highlights (HGB) Increased Investment – Laying the Foundations for Future Expected Growth
| in €m | 2021 | 2020 | Change in % |
|---|---|---|---|
| Revenue | 48.2 | 28.2 | +71% |
| Cost of Sales | (25.9) | (13.5) | +92% |
| Personnel Expenses | (12.6) | (8.0) | +58% |
| Depreciation | (3.2) | (2.5) | +28% |
| EBIT | 0.3 | 2.0 | (85%) |
| Profit (Loss) | (0.5) | 3.6 | n/a |
7
2021 Consolidated Cash Flow (HGB)
Expansion of client acquisition cost for Smartbroker underlining strategic focus
| in €m | 2021 | 2020 | Change in % |
|---|---|---|---|
| Operational EBITDA | 4.4 | 4.5 | (2%) |
| Change in Working Capital | 10.4 | (3.7) | n/a |
| Capital Expenditure | (18.9) | (0.5) | n/a |
| Operating Cash Flow | 13.9 | 1.2 | n/a |
| of which Smartbroker CAC | (12.9) | (7.1) | 85% |
| Non-recurring Items | (0.7) | (0.8) | (13%) |
| Taxes | (0.9) | (0.8) | 13% |
| Total Pre-financing Cash Flow | (5.9) | (0.1) | n/a |
| Financing Cash Flow | 17.3 | 4.5 | 284% |
| Total Cash Flow | 11.4 | 4.4 | 159% |
| Cash at the Beginning of the Period | 14.1 | 9.7 | 45% |
| Cash at the End of the Period | 25.5 | 14.1 | 81% |
2021 Consolidated Balance Sheet (HGB)
Cash and equity respectively represent 33% and 66% of balance sheet total
| Assets | |||
|---|---|---|---|
| in €m | 31.12.2021 | 31.12.2020 | % of total |
| Fixed Assets | 40.6 | 28.8 | 54% |
| Intangible Assets | 37.5 | 20.5 | 50% |
| Tangible Assets | 0.9 | 0.4 | 1% |
| Financial Assets | 2.2 | 7.9 | 3% |
| Current Assets | 34.4 | 22.0 | 46% |
| Inventories | 0.0 | 0.0 | - |
| Trade Receivables | 7.0 | 4.3 | 9% |
| Other | 1.9 | 3.6 | 3% |
| Cash & Equivalents | 25.5 | 14.1 | 34% |
| Prepaid Expenses | 0.4 | 0.3 | 1% |
| Total Assets | 75.4 | 51.2 | 100% |
| Equity & Liabilities | |||
|---|---|---|---|
| in €m | 31.12.2021 | 31.12.2020 | % of total |
| Equity | 49.5 | 30.2 | 64% |
| Provisions | 6.1 | 2.7 | 8% |
| Financial debt | 5.7 | 7.5 | 7% |
| Trade payables | 8.9 | 1.6 | 11% |
| Other liabilities | 2.0 | 6.4 | 2% |
| Deferred Income | 2.3 | 1.7 | 3% |
| Deferred Taxes | 0.9 | 1.0 | 1% |
| Total Liabilities | 75.4 | 51.2 | 100% |
2022 Financial and Operational Guidance Focusing on the Launch of Smartbroker 2.0
| in €m | 2022F |
|---|---|
| Revenue | 62.0 – 67.0 |
| thereof Media | 35.0 – 38.0 |
| thereof Transaction | 27.0 – 29.0 |
| Operational EBITDA before CAC | 16.0 – 18.0 |
| Operational EBITDA after CAC | 10.0 – 12.0 |
- Expect to launch Smartbroker 2.0 in H2 2022
- Expect to add 55k new brokerage accounts in 2022 →
- 300k brokerage accounts & assets under custody above €10bn by year-end 2022
Smartbroker 2.0 Brand New Customer Experience & State-of-the-Art Functionality
- Smartbroker 2.0 to be launched in H2 2022
- Faster service
- New products: e. g. selection of crypto currencies
- Smartbroker Cloud Platform
- Integrated customer data and content platform
- New client groups
- Digital ecosystem with well-known fintech companies centred in Berlin
Our Growth Cycle Long-term Value Creation for Our Clients and Our Shareholders
All growth values are 2021 year-over-year; *Pro forma: wallstreet:online capital AG fully consolidated as of 1 January 2021
Investing into Two Main Trends at the Heart of the Digital Transformation
- Unique Target Operating Model
- Strong Operational and Financial Momentum
- EUR 7 Trillion (7 x 1012) Market Growing at 6% p.a. for the Brokerage Business Alone
- Best Positioned for Material Market Share Gain
- Well -defined Product Roadmap to Monetise Opportunities
- State -of -the -Art Technology Roll -Out
- Ample long -term Growth Avenues
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.
