H1 2023 Interim Report 13 Sep 2023

RESULTS PRESENTATION

TODAY'S PRESENTERS

ROLAND

CEO, Founder

NICKLAUS CFO

OLIVER HAUGK Co-CEO, CPO

DISCLAIMER

This presentation has been prepared by Smartbroker Holding AG ("Smartbroker Holding") and comprises the written materials/slides for a presentation concerning Smartbroker Holding, 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 Smartbroker Holding. It does not constitute an offer to sell or the solicitation, inducement or an offer to buy shares in Smartbroker Holding or any other securities. Further, it does not constitute a recommendation by Smartbroker Holding or any other party to sell or buy shares in Smartbroker Holding 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 Smartbroker Holding 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 Smartbroker Holding as of the date indicated and are subject to change without notice. Smartbroker Holding 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.

01 | INTRO

RECENT NEWS

SMARTBROKER+ is live as Early Access Product | Onboarding of new clients started | Move of existing clients imminent

wallstreet
ONLINE

− SMARTBROKER+ product launched in August 2023 (Early Access)
− Move of existing client base planned for end of October 2023 → But new account opening & KYC required
− Rebrush of wallstreet-online.de completed
− Continuous roll-out of new video content
− Updated guidance for the full year 2023
− Andre Kolbinger's CEO contract prolonged until 2027
− CPO Oliver Haugk promoted to Co-CEO, contract prolonged until 2026

MARKET NEWS

Payment for Order Flow ("PFOF") to be implemented EU-wide

− Ban of PFOF to be introduced into EU law
− Process in finalization certain details may still shift
− Germany likely to implement the new system in 2026
− Proactive approach to adapt to the changed regulatory environment, once all details are clear
− We are in a strong position to adapt based on our diversified revenue base and broad product setup including the investors' choice to trade on all domestic and a large number of international trading venues

WHAT'S NEW ABOUT THE NEW SMARTBROKER?

CURRENT CAPABILITIES

− Trade on web & app (iOS, Android)
− Fully digital account opening process
− Most innovative and user-friendly interface
− Further decrease in pricing
− Real-time price data, watchlist and sub-accounts

COMING SOON

− More saving plans & ETFs (end of October)
− International trading venues (end of October)
− Margin loan (Lombardkredit)
− News, key figures and analyst ratings
− Discover new trends and assets
− Integration with our media offering & social communities
− Wider selection of structured products by partner banks

WHAT TO LOOK FOR IN A DIGITAL BROKER

INVESTMENT CASE

Investing into the long-term value creation of our business

Defensible Competitive Position Reaching 40%+ of XO investors in Germany with own media assets	Profitable Media Unit High margin business	Experienced and Invested Management Team Focused on long-term value creation
Clear Product Differentiation & Unique Selling Point Best prices for a full-service broker		Expanding Share in a Huge Market 30m investment accounts in Germany 13m private investors and savers

02 | H1 2023 FINANCIALS

SOME GROWTH DESPITE CHALLENGING ENVIRONMENT

Setting up SMARTBROKER+ to become the main growth driver by 2024

H1 RESULTS OVERVIEW

H1 2023 marked by weak macro environment, subdued markets activity, and operational transition

Copyright © Smartbroker Holding AG

* Please note: 2021 revenue value represents HGB pro forma revenue, incl. Smartbroker AG (previously wallstreet:online capital AG) fully consolidated from 1 January 2021; In accordance with the management information system (MIS), the FY2021 proforma revenue would amount to €51.4m, without any material effect on the EBITDA. CAC: client acquisition cost for Smartbroker

REVENUE SPLIT & OPERATIONAL KPIS

Entire business focused on the roll-out of SMARTBROKER+

in €m	H1 2023	H1 2022	Change in %	2022
Revenue	23.4	27.7	-16%	52.8
of which Transaction	8.7	10.4	-16%	18.7
of which Media	14.8	17.4	-15%	34.1

	End of H1 2023	End of H1 2022	Change in %	End of 2022
Brokerage accounts (in k)	272	269	+1%	267
Assets under custody (in €bn)	10.1	8.6	+17%	9.2
Ø Assets under custody per account (in €k)	37	33	+12%	34
Ø Trades per account (annualized)	17	22	-29%	18

H1 2023 SEGMENT REVENUE AND EBITDA

Reduced levels of profitability reflect changed market sentiment in the media segment & continued investment phase in the brokerage segment

in €m	Group	Media	Transaction
Revenue	23.4	14.8	8.7
EBITDA before CAC	2.0	3.4	(1.4)
Margin	9%	23%	neg.
Client acquisition cost (CAC)	(0.3)	-	(0.3)
EBITDA after CAC	1.7	3.4	(1.7)
Margin	7%	23%	neg.

H1 2023 EXPENSES

Tight cost control whilst concurrently implementing SMARTBROKER+; further reduction in CAC

in €m	H1 2023	H1 2022	Change in %	2022
Revenue	23.4	27.7	-16%	52.8
Capitalized own contribution	1.4	1.3	8%	2.4
Other operating income	0.4	0.3	33%	1.4

Data, IT & other materials	(8.9)	(8.3)	7%	(15.6)
Marketing & CAC	(0.9)	(3.2)	-72%	(5.5)
Personnel	(9.9)	(9.5)	4%	(18.7)
Other	(3.8)	(3.6)	6%	(8.0)
Total OPEX	(23.5)	(24.6)	-4%	(47.8)

Non-recurring items	-	-		-
EBITDA	1.7	4.7	-64%	8.8

Operational EBITDA	1.7	4.7	-64%	8.8
Add back: Smartbroker Customer Acquisition Cost	0.3	3.2	-91%	4.0
Operational EBITDA before CAC	2.0	7.9	-75%	12.8

H1 2023 EXPENSES (CONT'D)

All non-operating expenditure have returned to regular levels

in €m	H1 2023	H1 2022	Change in %	2022
EBITDA	1.7	4.7	-64%	8.8
Depreciation	(2.2)	(2.2)	-	(17.2)
of which non-recurring	-	-	-	(12.6)
of which firm value (HGB)	(1.3)	(1.3)	-	(2.7)
of which fixed and intangible assets	(0.6)	(0.6)	-	(1.9)
EBIT	(0.5)	2.5	-120%	(8.4)
Financial result	<(0.1)	(0.2)	n/a	(1.5)
of which interest	<(0.1)	(0.2)	n/a	(0.3)
of which impairment	-	-		(1.2)
EBT	(0.5)	2.3	n/a	(9.9)

H1 2023 CONSOLIDATED CASH FLOW

in €m	H1 2023	H1 2022	Change in %	2022
Profit (Loss)	(1.7)	1.2	n/a	(10.1)

Taxes	(0.7)	(0.9)	-22%	(1.3)
Depreciation and impairment	2.2	2.2	-	18.4
Changes in balance sheet items	(0.4)	1.1	n/a	(3.7)
Non-cash P&L items	1.6	1.2	33%	3.4
Non-recurring Items	-	-	-	0.0

Operating Cash Flow	1.0	4.8	-79%	5.1
of which Smartbroker CAC	(0.3)	(3.2)	-91%	(4.0)

Capital Expenditure	(4.8)	(18.6)	-74%	(22.0)
Total pre-financing Cash Flow	(3.8)	(13.9)	-73%	(17.0)

Financing Cash Flow	(2.3)	11.0	n/a	18.7

Total Cash Flow	(6.1)	(2.8)	118%	1.9
Cash at the beginning of the period	27.4	25.5	7%	25.5
Cash at the end of the period	21.3	22.8	-7%	27.4

H1 2023 CONSOLIDATED BALANCE SHEET

Cash and equity respectively represent 30% and 66% of balance sheet total

Assets				Equity & Liabilities
in €m	30.06.2023	31.12.2022	% of total	in €m	30.06.2023	31.12.2022	% of total
Fixed Assets	40.2	36.9	56%		47.8	49.4	66%
Intangible Assets	36.8	33.6	51%	Equity
Tangible Assets	1.9	1.8	3%	Provisions	4.7	4.0	7%
Financial Assets	1.5	1.5	2%	Financial debt	12.6	14.9	18%
Current Assets	31.2	36.3	43%
Inventories	0.0	0.0	0%	Trade payables	3.1	3.0	4%
Trade Receivables	7.6	6.2	11%	Other liabilities	0.4	0.6	1%
Other	2.3	2.7	3%
Cash & Equivalents	21.3	27.4	30%	Deferred Income	1.5	1.2	2%
				Deferred Taxes	1.8	0.8	3%
Prepaid Expenses	0.6	0.7	1%
Total Assets	72.0	73.9	100%	Total Liabilities	72.0	73.9	100%

OUTLOOK 2023

PLANNING ASSUMPTIONS

TRANSACTION

− Trading activity to remain stable, albeit on the lower levels recorded during the first two quarters
− Double cost base, plus one-off migration costs in H2

MEDIA

− Advertising market to remain stable, albeit on the lower levels recorded during the first two quarters
− Maintaining our established market position; recent rates of decline were similar to the overall market
− Diversify media revenue with new income sources

CURRENT UNCERTAINTIES

− Move of existing customers to SMARTBROKER+
− Next steps for customers who refuse to move
− Timing of the increased focus on new customer marketing

GUIDANCE 2023

Last transition year before SMARTBROKER+ will provide full year contribution

Revenue, in €m EBITDA after CAC, in €m

* Please note: 2021 pro forma HGB (German commercial code) revenue, incl. Smartbroker AG (previously wallstreet:online capital AG) fully consolidated from 1 January 2021; In accordance with MIS the FY2021 pro forma revenue would amount to €51.4m, without material effect on the EBITDA. B: budgeted, according to current company guidance | CAC: client acquisition cost

MID-TERM GOALS

Transaction segment likely to become the main revenue contributor

Smartbroker AG moving towards EBITDA break even

Increase in market share | 75k new accounts p.a. from 2024

Maintain price leadership and leading customer value proposition

Drive innovation for Transaction & Media | One-stop-shop for private investors to inform, learn and invest

UPCOMING EVENTS

17 Oct 2023 | Annual general meeting of shareholders

Nov 2023 | Communication on outcome of the move of existing clients onto the SMARTBROKER+ platform

28 Nov 2023 | Equity Forum Frankfurt

Feb 2024 | Financial and operational plans for 2024

03 | SMARTBROKER+ PRODUCT DEEP DIVE

THANK YOU

[email protected]

The Smartbroker Group operates SMARTBROKER+ – a multiple award-winning next generation broker and the only provider in Germany to combine the extensive product range of traditional brokers with the extremely favorable conditions of neobrokers. The portfolio also includes the digital fund broker FondsDISCOUNT.de. In addition, the Group operates four high-reach stock market portals and related digital media assets (wallstreet-online.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 German-speaking countries and hosts the largest financial community.

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