Smartbroker Holding AG

Investor Presentation • May 19, 2023

The Profitable Innovator of Germany's Personal Savings & Investment Sector

May 2023

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 forwardlooking 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.

We Offer a Comprehensive Digital Finance and Investment Platform for Private Investors

Transaction platforms for private savers & investors

Smartbroker operates a comprehensive next generation broker

Launched 2019

Media platforms comprising websites, apps, forums

The largest publisher-independent financial portal operator

Host of the largest finance community across German-speaking Europe

Launched 1998

25+yrs market experience | 100% digital | Comprehensive product offering | In-house development

Introduction to the Smartbroker Team Founder-led Team with combined 95+ Years Relevant Sector Experience

4

André Kolbinger CEO & Founder

• Founded the group in 1998
• 25+ yrs digital media & content experience
• Solid track record of organic and M&A driven business growth
• Returned as CEO in August 2022, previously SB Chairman

Roland Nicklaus Chief Financial Officer

• Assumed role in April 2021
• Joined as non-executive in 2008
• 23yrs banking & finance experience

Oliver Haugk CTO

Stefan Zmojda CRO

Michael Bulgrin CCO

Thomas Soltau

Board Member Markets & Customers Smartbroker AG

Uwe Lüders

Board Member Risk & Operation Smartbroker AG

Balanced Revenue Base & Positive Operating Cash Flow Enable Self-Financed Development of New Products

• Reinvesting media's profitability into Smartbroker
• Complementing our ad-based media business with a transactionbased brokerage business
• €28m total investment into Smartbroker 2.0 incl. 2023
• €6m further investment to complete the project
• €27m gross cash balance end of 2022E

More than a Decade of Profitable Growth

CAC: client acquisition cost | EBITDA margin calculated for EBITDA before CAC | E = estimate, preliminary, unaudited | B = budgeted * Please note: 2021 pro forma HGB revenue, incl. Smartbroker AG fully consolidated from 1 Jan 2021; In accordance with the management information system, the FY2021 pro forma revenue would have amounted to €51.4m, without material effect on the EBITDA.

Recent News Smartbroker 2.0 Remains Top Priority to Set Us Up for Further Growth

• Smartbroker 2.0 in advanced stages of development

• Cooperation agreement with Baader Bank in place

• New editorial news team & premium products launched

• Refreshing of wallstreet-online.de kicked-off

• Celebrated 25 years in business this January

• Fully financed to complete Smartbroker 2.0 launch

Connecting All Spheres of Private Investing & Saving User-centric Product & Business Model Approach

• SBH BUSINESS MODELL
• Digital advertising
• Subscription fees
• B2B client commissions

40%+ reach on the German market 1%+ market share on the German market

• Retail commissions
• Sponsoring, trading venues
• Digital advertising

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

2022 | Further Growth Despite Challenging Environment Setting up Smartbroker to become the Main Growth Driver by 2024

8.8 9.2 2020 2021 2022E

CAC = client acquisition cost

• Ø €34k client account volume
• 18 trades p.a. (2021: 29 trades)
• Ø €5k trade size
• <3% churn
• CAC ~€100 per account | Returned in <2yrs
• Positive unit economics from year 1
• Plan: add 75k accounts p.a. from 2024

Smartbroker 2.0 Extended Customer Experience & State-of-the-Art Functionality

Additions & Innovations

• Smartbroker app & new web interface
• New products: e. g. crypto trading
• New client groups

Benefits

• First provider to combine transaction with content & community in one product
• Optimized business model
• Profit contribution from 2024 onwards

Normalized Media Activity in 2022 Leading Market Position Makes Us a Staple for Advertisers

3 million+ Monthly Active Users 2 million+ App Installs 970 thousand+ Registered Users on our Discussion Forums 680 thousand+ Qualified Newsletter Recipients

Our Brands

Diversified Media Revenue Streams Largely Ad-based Business Extended by Paid Content & B2B Data

Key Account Advertising

Direct-deal partnerships with banks, funds, ETP-providers addressing potential clients

Investor Relations Advertising

Direct-deal partnerships with listed companies addressing potential investors

Programmatic Advertising

Offering our premium inventory via open auction to leading RTB partners

Exclusive Paid Content

Own editorial team providing market and asset analysis, recommendations

B2B Data & Media

Offering high-quality financial data, regulatory documents and web operations to B2B clients (e.g. Börse Frankfurt)

We Know Our Media Users Advertisers Value our Targeted, High-value User Groups

• Private investors & savers
• Above-average affinity for finance, private pension provision, economics, consumer goods
• 7% of visitors are institutional investors
• 15 trades per month
• Typical trade size between €500 and €10k
• €150k avg. securities account volume
• Valuable target group for technology, automotive, travel, sports and high-priced consumer goods
• 50% of user have more than €3k monthly net income

Source: 2022 Germany Investment and Trading Survey by "Investment Trends Australia" Independent user analysis for Smartbroker Holding's media business

Key Tailwinds Expanding our Addressable Market

▪ Digitization

15

• User-friendly technology
• New (retail commission free) business models
• Free access to reliable financial information and education
• Pensions gap
• Wealth transfer through inheritance
• New generation of digital-first savers & investors

German Households' Financial Assets Grow by 6% p.a. Investments in Listed Equities & Funds Growing at Double this Rate

Source: Deutsche Bundesbank, data as of Q3 2022 | Company websites, own research, Oliver Wyman 2021 | CAGR 2015-2021 OECD 2021 data | Smartbroker market share based on assets under custody, company estimate

Disrupting the Market with €0 Retail Commissions Zero-fee Commissions Enable Broad Access to Capital Markets

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 charging low (zero) commissions, and earning revenue from other sources

Commissions based on hypothetical investment of EUR 5,000 | Source: ExtraETF 2022, broker websites Market share based on number of securities accounts (own estimation)

Stable Market Environment for More Than Half a Decade Established Players Have Not Changed Their Pricing

Approx. market share

securities accounts (own estimation)

New market entries leverage

• Lean operations & cost structure
• Targeted product design
• Digital-first concept for product & go-to-market strategy
• New approaches on pricing & sharing cost advantages with clients

→ Barriers for traditional brokers to adopt next gen broker pricing remain high

We Are Covering the Entire Retail Investment Value Chain Specific Growth Initiatives for Each Value Contributor

Consumers

engage with financial news media, educational content and social platforms to

gather information

on markets, trends, assets, investment strategies

and invest

in shares, ETFs, funds, crypto etc. to build up savings over time

We Are Covering the Entire Retail Investment Value Chain Specific Growth Initiatives for Each Value Contributor

Saving & Investing Discovering & Learning Analyzing & Evaluating Executing & Optimizing

Guidance 2023 Last Transition Year Before Smartbroker 2.0 will Provide Full Year Contribution

Revenue, in €m EBITDA before and 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. E: estimate | B: budgeted, according to current company guidance | CAC: client acquisition cost

Investment Case Moving from Investment Phase towards Harvest Period

Clear Product Differentiation & Unique Selling Point

Trade virtually all licensed securities on any German venue permanently from €0 commission

Expanding Share of a Growing Market

c. 1% of total German brokerage accounts c. 4% of new accounts in Germany in 2021

Proven Track-Record of Profitable Growth

Defensible Competitive Position

Reaching 40%+ of XO investors in Germany with own media assets

Experienced and Invested Management Team

Focused on long-term value creation

Smartbroker Holding AG Ritterstr. 11 | 10969 Berlin ir@smartbroker-holding.de

About | The Smartbroker 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 next generation brokers. At the same time, the Group operates four high-reach stock market portals (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 finance community.