Investor Presentation • Sep 21, 2022
Investor Presentation
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21 September 2022
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.
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Most stock exchanges, all important asset classes combined in one product
Efficient online marketing Utilisation of the reach of own media portals
Brand building
Connecting information & transaction
Social trading, financial education, community
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* Please note: 2021 values are HGB pro forma revenues, 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, the H1 2021 value to €23.8m, without any material effect on the EBITDA.
MIS, as shown in the H1 2021 and FY 2022 results presentations | Change solely due to the net to gross reporting of a specific revenue category
CAC = client acquisition cost for Smartbroker
| in €m, HGB | H1 2022 | H1 2021 | Change in % |
|---|---|---|---|
| Revenue | 27.7 | 27.2 | 2% |
| thereof Transaction | 10.7 | 9.7 | +10% |
| thereof Media | 17.0 | 17.7 | -4% |
| H1 2022 | H1 2021 | Change in % | |
|---|---|---|---|
| Brokerage accounts (in k) | 269 | 187 | +44% |
| Assets under custody (in €bn) | 8.6 | 6.8 | +26% |
| Ø Assets under custody per account (in €k) | 33 | 36 | -8% |
| Ø Trades per account (annualised) | 22 | 29* | - |
All 2021 financials are pro forma, incl. Smartbroker AG (former wallstreet:online capital AG) from 1 January 2021 In accordance with the MIS, the H1 2021 revenue would amount to €23.8m, without any material effect on the EBITDA.
* Based on FY2021
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| in €m | H1 2022 | H1 2021 | Change in % |
|---|---|---|---|
| Revenue | 27.7 | 27.2 | +2% |
| Capitalized own contribution | 1.3 | - | n/a |
| Other operating income | 0.3 | 0.2 | +50% |
| Data, IT & other materials | (8.3) | (7.5) | 11% |
| Smartbroker client acquisition cost | (3.2) | (7.9) | -59% |
| Personnel | (9.5) | (7.3) | 30% |
| Other | (3.6) | (3.6) | - |
| Non-recurring items | - | (0.5) | n/a |
| EBITDA | 4.7 | 0.6 | +683% |
| add back/ (deduct): Non-recurring items | - | 0.5 | n/a |
| Operational EBITDA | 4.7 | 1.1 | +327% |
| Add back: Smartbroker Customer Acquisition Cost | 3.2 | 7.9 | -59% |
| Operational EBITDA before CAC | 7.9 | 9.0 | -12% |
All 2021 financials are pro forma, incl. Smartbroker AG (former wallstreet:online capital AG) from 1 January 2021
| in €m | H1 2022 | H1 2021 | Change in % |
|---|---|---|---|
| EBITDA | 4.7 | 0.6 | +683% |
| Depreciation | (2.2) | (1.3) | +69% |
| EBIT | 2.5 | (0.8) | n/a |
| Interest | (0.2) | (0.3)* | +33% |
| Taxes | (1.1) | (0.1) | n/a |
| Profit (Loss) | 1.2 | (1.2) | n/a |
| in €m | H1 2022 | H1 2021 | Change in % |
|---|---|---|---|
| Profit (Loss) | 1.2 | (1.1) | n/a |
| Taxes | (0.9) | (0.8) | -13% |
| Depreciation | 2.2 | 1.3 | +69% |
| Changes in balance sheet items | 1.1 | 0.4 | +175% |
| Non-cash P&L items | 1.2 | 1.0 | +20% |
| Non-recurring Items | 0.0 | (0.7) | n/a |
| Operating Cash Flow of which Smartbroker CAC |
4.8 3.2 |
0.1 7.9 |
n/a -59% |
| Capital Expenditure | (18.6) | (1.3) | n/a |
| Total pre-financing Cash Flow | (13.9) | (1.2) | n/a |
| Financing Cash Flow | 11.0 | 18.1 | -39% |
| Total Cash Flow | (2.8) | 16.9 | n/a |
| Cash at the beginning of the period | 25.5 | 14.1 | +81% |
| Cash at the end of the period | 22.8 | 30.9 | -26% |
2021 values are pro forma: wallstreet:online capital AG fully consolidated as of 1 January 2021 CAC = client acquisition cost
Cash and equity respectively represent 28% and 62% of balance sheet total
| Assets | |||
|---|---|---|---|
| in €m | 30.6.2022 | 31.12.2021 | % of total |
| Fixed Assets | 49.9 | 40.6 | 61% |
| Intangible Assets | 45.3 | 37.5 | 55% |
| Tangible Assets | 2.1 | 0.9 | 3% |
| Financial Assets | 2.5 | 2.2 | 3% |
| Current Assets | 31.8 | 34.4 | 39% |
| Inventories | 0.0 | 0.0 | 0% |
| Trade Receivables | 7.2 | 7.0 | 9% |
| Other | 1.8 | 1.9 | 2% |
| Cash & Equivalents | 22.8 | 25.5 | 28% |
| Prepaid Expenses | 0.5 | 0.4 | 1% |
| Total Assets | 82.2 | 75.4 | 100% |
| Equity & Liabilities | |||
|---|---|---|---|
| in €m | 30.6.2022 | 31.12.2021 | % of total |
| Equity | 50.6 | 49.5 | 62% |
| Provisions | 7.4 | 6.1 | 9% |
| Financial debt | 16.9 | 5.7 | 21% |
| Trade payables | 4.3 | 8.9 | 5% |
| Other liabilities | 0.3 | 1.9 | 0% |
| Deferred Income | 1.8 | 2.3 | 2% |
| Deferred Taxes | 0.8 | 0.9 | 1% |
| Total Liabilities | 82.2 | 75.4 | 100% |
* 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 the management information system HGB 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
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CAC: client acquisition cost | B: budgeted, median; EBITDA margin calculated for EBITDA before CAC
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.
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