Slides
Page 1
flatexDEGIRO - Leading European platform for building wealth June 2025
Page 2
Disclaimer Non-IFRS measures (APMs) This presentation includes non-IFRS measures. These measures are alternative performance measures as defined by the European Securities and Markets Authority ("ESMA"). flatexDEGIRO presents these non-IFRS measures as (i) they are used by its management to measure performance, including in presentations to the Management Board and Supervisory Board members and as a basis for strategic planning and forecasting; and (ii) they represent measures that flatexDEGIRO believes are widely used by certain investors, securities analysts and other parties as supplemental measures of operating and financial performance. These non-IFRS measures may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should not be considered as a substitute for analysis of flatexDEGIRO's operating results as reported under IFRS. Non-IFRS measures are not a measurement of flatexDEGIRO's performance or liquidity under IFRS and should not be considered as alternatives to consolidated net profit or any other performance measure derived in accordance with IFRS or other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities. Forward-looking statements This release may contain forward-looking statements and information, which may be identified by formulations using terms such as "expects", "aims", "anticipates", "intends", "plans", "believes", "seeks", "estimates" or "will". Such forward-looking statements are based on our current expectations and certain assumptions, which may be subject to variety of risks and uncertainties. The results actually achieved by flatexDEGIRO AG may substantially differ from these forward-looking statements. flatexDEGIRO assumes no obligation to update these forward-looking statements or to correct them in case of developments, which differ from those anticipated. Corporate Presentation
Page 3
Agenda 1 flatexDEGIRO at a glance 2 Outlook 2025 3 Strategic Priorities 4 Mid-Term Guidance
Page 4
flatexDEGIRO at a glance
Page 5
flatexDEGIRO – Leading European platform for building wealth 5 We prioritize our customers' needs We ensure superior market access at low costs We offer local reach but global access We strive to support our communities We are dedicated to enhance financial literacy We ensure the highest security for our customers' assets Corporate Presentation
Page 6
flatexDEGIRO at a glance Corporate Presentation 6 Key Operating Metrics 2024 Revenue Model and Contribution Markets 16 countries Executed Trades > 63 m Number of Customer accounts 3.1 m Executed Trade Volume ~ 300 bn EUR Employees ~ 1,250 Assets under Custody > 70 bn EUR Online Brokerage Credit and Treasury IT Services & Others
Page 7
Highly experienced and committed Management Board 7 Oliver Behrens CEO joined: 2024 Responsibility: • Strategy • Markets • Marketing • Internal Audit Dr. Benon Janos CFO joined: 2016 Responsibility: • Group Finance • Group Risk • Investor Relations • ESG Christiane Strubel Chief HR Officer joined: 2016 Responsibility: • HR • Legal • Internal Controls • Processes Corporate Presentation
Page 8
Another record year in 2024 Growing customer base drives increase in Settled Transactions (+11 %) Revenue growth of 23 % to 480 m EUR, surpassing previous record of the Covid-/Meme-Stock-Year 2021 (415 m EUR) by 15% Record Net Income achieved, despite some one-time cost effects Revenue split (m EUR) 407* 391 480 0 1 00 200 3 00 400 500 600 2022 2023 2024 Other Commission Income Interest Income * 2022: Including reversal of provisions for long-term variable compensation: 38 m EUR in Revnues (Other) and 28 m EUR in Net Income 8 Settled Transactions (m) 67 57 63 0 10 20 30 40 50 60 70 80 2022 2023 2024 Net Income (m EUR) and Net Income margin (%) 106 72 112 1 0% 20% 3 0% 40% 0 20 40 60 80 1 00 120 2022* 2023 2024 Net Income Net Income Margin Corporate Presentation
Page 9
Solid start to the year in Q1 2025 9 123 119 112 127 146 Q1/2024 Q2/ 2024 Q3/2024 Q4/2024 Q1/2025 75 66 64 77 98 Q1/2024 Q2/ 2024 Q3/2024 Q4/2024 Q1/2025 44 48 44 45 43 Q1/2024 Q2/ 2024 Q3/2024 Q4/2024 Q1/2025 +19% +31% +27% -1% +15% -3% Revenues (m EUR) Commission Income (m EUR) Interest Income (m EUR) Note: Revenues also includes Other Operating Income which is not depicted on this slide Corporate Presentation
Page 10
Strong Q1 2025 driven by increased market volatility 10 0 10 20 30 40 50 60 70 80 90 • Q1 2025 was strongest quarter in flatexDEGIRO’s history in terms of Revenues and Earnings • Settled Transactions increased by 21% YoY in Q1 2025 • Net Interest Income declined less than expected, driven by significant increase in cash holdings. However, this may be a temporary effect as cash likely to be reinvested in the future • Strong customer growth and exceptional increase in trading activity in April 2025 driven by increased market volatility • 5 days in April 2025 made it to the Top10 of highest trade €-volumes (not “number of settled trades”!) ever at flatexDEGIRO VIX Index crossing 50 mark again in April The unusually strong activity is unlikely to continue in the future and might reverse Corporate Presentation
Page 11
Strong commercial performance in FY 2024 462 341 421 0 50 1 00 150 200 250 3 00 350 400 450 500 H1 H2 FY 2022 2023 2024 Annual Customer additions (k) Monthly customer growth 2024 constantly above 2023 with significant acceleration in Q4 2024 Full-year growth of 421 k (+24 %) close to 2022-level, customer acquisition costs of 75 Euro (reduction of 24 % vs. 2023) Total Assets under Custody surpassing 70 bn EUR in 2024 11 Corporate Presentation Customer Cash under Custody (bn EUR) 3.2 3.6 4.3 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2022 2023 2024 Total Assets under Custody (bn EUR) 39.5 51.8 71.5 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 2022 2023 2024
Page 12
12 Corporate Presentation Majority of customers with academic background and previous trading experience 75% of customers between 23-49 years old 22 trades in 2024 ~ 5,000 EUR transaction volume in 2024 ~ 25,000 EUR Assets under Custody Average customer flatexDEGIRO provides its services to mature and well-situated clients Note: All figures as per 31 Dec 2024, if not mentioned otherwise Increasing share of female customers per cohort, standing at 26% in 2024
Page 13
Leading user experience on award-winning platforms flatex and DEGIRO consistently secure top positions in industry rankings Corporate Presentation
Page 14
Industry-leading customer growth Leading customer growth over the last 3 years with CAGR of 14 % Stronger growth only observed at one non-listed peer with currently strong pivot from neo-brokerage towards neo- banking Customer growth CAGR of listed peers (Dec 2021- Dec 2024) Absolut customer growth of listed peers 2022-2024 (k) * Hargreaves Lansdown and Swissquote : growth in 2024 extrapolated based on last published numbers 14 14% -10% -5% 0% 5% 10% 15% 1,010 -20 0 - 200 400 600 800 1,000 Corporate Presentation
Page 15
Stable share of active customers on a growing basis Largest active customer base with close to 1 m customers trading in Q4/2024 Share of active customers (per quarter) slightly up in 2024 to > 30 %, with relative stable development over the last 2.5 years Active Customers (at least 1 trade per quarter) 39% 29% 28% 31% 0% 5% 1 0% 15% 20% 25% 3 0% 35% 40% 45% 0 250,000 500,000 750,000 1,000,000 Q1/22 Q2 /22 Q3/22 Q4/22 Q1/23 Q2 /23 Q3/23 Q4/23 Q1/24 Q2 /24 Q3/24 Q4/24 Active customers (left) Share active customers (right) 859k 705k 761k 951k 15 Corporate Presentation
Page 16
Stabilized trading activity per customer Range of 20-25 trades per customer p.a. on average stable for the last 2.5 years Trading activity higher at flatex, with very similar trends at both brands Quarterly trading activity (average number of trades per customer, annualized) Annual trading activity 0 10 20 30 40 50 60 Q1/22 Q2 /22 Q3/22 Q4/22 Q1/23 Q2 /23 Q3/23 Q4/23 Q1/24 Q2 /24 Q3/24 Q4/24 flatexDEGIRO flatex DEGIRO 30 22 22 0 5 10 15 20 25 30 35 2022 2023 2024 16 Corporate Presentation
Page 17
Average commission per transaction further improved Increase in 2024 (+8 %) driven by price adjustments in May 2023, positive product mix and higher share of US trades First quarter usually with higher commission per transaction due to booking of annual fees Average commission per transaction (EUR) per quarter Average commission per transaction (EUR) 2.00 2.50 3 .00 3 .50 4.00 4.50 5.00 Q1/22 Q2 /22Q3/22 Q4/22 Q1/23 Q2 /23Q3/23 Q4/23 Q1/24 Q2 /24Q3/24 Q4/24 Q1/25 4.06 4.13 4.47 3 .50 3 .75 4.00 4.25 4.50 4.75 2022 2023 2024 17 Corporate Presentation
Page 18
Underlying basis of Interest Income with solid growth Cash under Custody has grown over the last 3 years by more than 1 bn EUR (37%) from 3 bn EUR to > 4 bn EUR Margin Loan Book has benefitted from customer growth and additional access of DEGIRO customers Cash under Custody (bn EUR) Margin Loan Book (bn EUR) 0.00 1.00 2.00 3.00 4.00 5.00 6.00 0.00 0.20 0.40 0.60 0. 80 1.00 1.20 1.40 18 Corporate Presentation
Page 19
Outlook 2025
Page 20
Outlook 2025 unchanged Commission income to grow: • Customer growth and trading activity above expectations in Jan-Apr 2025 • Normalization expected Revenues Net Income -5 % to +5 % Y oY (~ 455 m EUR to ~ 505 m EUR) -5 % to +10 % Y oY (~ 106 m EUR to ~ 123 m EUR) Interest income to decline: • Higher cash position partially due to asset sales in declining markets • Trend to potentially reverse in normalizing environment • Further ECB rate cuts expected Cost base to be brought down: • Current personnel expenses below 2024, variable long-term compensation elevated by strong share price performance • Marketing stable at CAC of ~ 75 EUR • Admin expenses to be reduced by up to ~ 10 m EUR 20 Corporate Presentation
Page 21
Strategic Priorities
Page 22
flatexDEGIRO has reached a pivotal stage Today Challenging market environment for trading: • Uncertainty due to war in Ukraine • High inflation and rapid interest rate hikes Offset by increased interest income 2022 2023 2024 2025 2026 2027 • Working on regulatory findings required to shift focus and resources • Governance & Management changes Last 3 years Financial record-year with solid growth Improving trading environment: • Inflation normalizing • Interest rates falling • Equity markets at record highs T oday • Major BaFin findings solved, mandate of special commissioner terminated, SREP reduced • Refocusing on business and customers, launch of crypto trading in Germany • New CEO in place Re-set of interest rate environment in 2025 Increasing retail appetite for investment Next 3 years • Scaling the business, accelerating growth and activating clients • Shifting focus to enhance commercial and organizational setup • Achieve operational leverage by increasing efficiency and lowering admin expenses 22 Corporate Presentation
Page 23
Strategic priorities for the next three years 23 • Increase trading activity and reactivate a higher share of (currently) inactive customers • Ensure ongoing long-term growth across a more diverse set of customers • Increase local presence in key markets • Optimize use of deposits • Launch of new products/services o Crypto o Securities Lending o Savings Plans / Fractional Shares o Products tailored to lower-risk categories o Term Deposits • Strengthen “Business Process Outsourcing” activities • Increase share of recurring revenues • Realize efficiency gains and manage costs tightly • Finalize platform harmonization • Reduce complexity Unlocking potential by switching gears, focusing on commercial projects and achieving scalability on one platform Measures based on leveraging opportunities that are under our control Grow and Strengthen Existing Business Diversify Product and Service OfferingIncrease Efficiency Corporate Presentation
Page 24
Increase Efficiency
Page 25
Acquisition of DEGIRO, strong organic growth and regulatory challenges have led to increased organizational complexity. Initiated cost reductions to be stringently continued Realize efficiency gains and cost control 25 Operational efficiency: Catching -up to most relevant peers Revenues per Employee Net Income per Employee Peer average* EUR ~ 575,000 ~ 280,000 flatexDEGIRO EUR ~ 380,000 ~ 90,000 Delta ~ 34 % ~ 68 % *Including Avanza, Fineco, Hargreaves Lansdown, Nordnet and Swissquote ; Source: Company data and Visible Alpha • Fully closing the gap on Revenues per Employee based on increased revenues and efficient workforce • Reducing the gap on Net Income per Employee based on operating leverage, but not fully closing due to: • Higher operational complexity due to pan- European footprint • Marketing spent to foster growth across 16 markets • Less favorable taxation in Germany and the Netherlands, compared to some peers Corporate Presentation
Page 26
Simplifying organizational structure by moving to a European “SE” Ongoing divestment of non-core financial engagements Reduce complexity and increase focus 26 Organizational changes • Alternative portfolio mostly built during negative ECB rate environment • Ongoing divestments of these non-core activities without pressure • Purchase agreement signed and closed in Q1 2025. The sale price of the transactions reflected IFRS book value • The repayment end of March 2025 results in a significant improvement in Non-Performing Loan (NPL) Ratio Full divestment of real estate credit loan portfolio reduces NPL ratio • Adapt legal entity from German “Aktiengesellschaft ” to European “Societas Europea (SE)” • Reflect European DNA and provide future flexibility • To become effective in H2/2025 after approval of next AGM • This will not affect geographic footprint, locations, legal headquarters in Germany or listing at the Frankfurt Stock Exchange Balance sheet value of alternative credit & investing portfolio (m EUR) 0 50 1 00 150 2022 2023 2024 2025 (e) 2027 (e) Real Estate and Special Credit Portfolio Fund Investment s Corporate Presentation
Page 27
Grow and Strengthen Existing Business
Page 28
Building on a strong and growing customer base Continuing to grow our customer base by a CAGR of at least 10 %, crossing 4 million by end of 2027 Better supporting trading active customers and reactivating inactive customers - 1.0 2.0 3.0 4.0 Concrete measures • Continuously improve product offering • Improve customer experience in the app • Optimizing provided market data • Enhance portfolio analysis and charting tools • Attractive offerings for young customers • Enhance tax services • Customized advertising per target audience Indicative 3-year customer growth (m) 28 Corporate Presentation
Page 29
Reactivating existing customers Activity of last 10 cohorts (2015-2024) in 2024 Potential • Approx. 250,000 inactive customers have more than 1,000 EUR in assets on our platform • Each additional “1 trade per customer p.a.” would increase Revenues by approx. 1 m EUR Concrete Actions • Marketing-automatization with focus on content and education • Personalized engagement flows • Alerts and news based on existing portfolios and watchlists Activity rate slightly below 50 % in 2024, leaving significant potential with known but inactive customers New customer quality increasing in 2023 and 2024, after dilution in particular in 2021 29 Size of bubble represents cohort size Year of onboarding Corporate Presentation
Page 30
Increasing local presence in key markets Largest countries by number of customers Getting closer to local markets • Offering global access on a local level requires higher market proximity in key markets • Fostering relationship with local partner and regulators • Evolving local product and service offering • Tailoring marketing to local preferences • Limited local staff representation • Highest market growth potential 2023 – 2028 in France, Italy and Spain with CAGRs of 6 % to 12 %* Top 6 countries account for ~ 80 % of total customer base. Next to home markets Netherlands and Germany, more countries have meanwhile reached critical size of well > 100 k customers - 25 0, 000 500,000 750,000 1,000,000 Ita ly France Austria Spain Ger ma ny Netherlands 17 *Source: Oliver Wyman: „Online Securities Brokerage 2024“; https://www.oliverwyman.de/content/dam/oliver-wyman/v2-de/publications/2024/Online-Wertpapier-Brokerage-2024.pdf 30 Corporate Presentation
Page 31
Optimizing use of deposits Simplified deployment of Customer Cash under Custody (bn EUR) Current Treasury strategy leaves room for more active strategy without abandoning the fundamentally risk-averse approach Limited offering of Term Deposits adds investment opportunities for customers and strengthens deposit base ~ 4 ~ 1 0.2 - 0.3 > 2.5 • flatexDEGIRO uses customer cash deposits as funding for its Margin Loan business – excess liquidity is mostly kept overnight at Bundesbank • Limited future offering of Term Deposits to be used as a leverage for aligned T reasury strategy • A slightly more active T reasury strategy will contribute to Interest Income without compromising on risk assessment • Every 1 basis point improvement on overnight deposits would result in 250 k EUR in additional revenues and EBT • Customers benefit from expansion of product portfolio 31 Corporate Presentation
Page 32
Diversify Product and Service Offering
Page 33
Crypto Trading – High transparency & attractive fees define new industry standard Our USP in Germany Successful launch in Germany in December 2024 to be followed by a European-wide roll-out in 2025 German offering: Fixed total cost of 0.6 % (Majors) to 0.7 % (Minors), including spread & full cost transparency • Reference prices calculated as mid-point average from several liquid trading venues • Fixed spreads up to significant volumes exceeding average retail order size • Fixed low total costs of 0.6 % for Majors, such as Bitcoin, and 0.7 % for Minors • All-in-fee comprises: commission (0.5%), spread and custody; no additional costs • Already fully compliant with MiCAR requirements - only such offering in Germany 33 Corporate Presentation
Page 34
flatexDEGIRO’s brokerage platforms serve as the single interface to customers Specialized partners ensure highest quality standards and minimize risk & time to market Crypto Trading – Teaming up with partners to provide best-in-class solutions 20 most relevant coins Seamlessly integrated in flatex app 3 integrated partners Liquidity Provider Order Routing Custody 34 Corporate Presentation
Page 35
• Our crypto offering has set new standards in terms of total costs and price transparency in Germany. We exceeded a trading volume of 100 m EUR, with ~ 50k trades and ~ 8k clients (~ 2% of German client base) since the Dec ‘24 launch • European MiCAR license received in April 2025 allowing for passporting • Crypto trading will be extended to major markets in the Netherlands, Austria, France, and Spain in Q2 2025 • Crypto trading on flatex and DEGIRO will then be available to over 2 million customers (~ 2/3 of total customer base) Crypto trading soon to be extended to four more major markets flatex Germany Austria DEGIRO Further markets Product portfolio Existing offering with 20 coins Jun 25Dec 24 Dec 25 35 Expansion of product portfolio Netherlands, France and Spain Corporate Presentation
Page 36
Valuable enhancement to our product offering, enabling the generation of additional income for our customers and us European retail asset portfolio highly interesting for institutional lending desks 31.5 0 5 10 15 20 25 30 35 Dec 21 Jun 22 Dec 22 Jun 23 Dec 23 Jun 24 Dec 24 Unlocking recurring revenue potential via Securities Lending DEGIRO Assets under Custody (bn EUR) 36 Asset Scope Stocks and ETFs at DEGIRO Relevant Portfolio Around 20-30% of DEGIRO’s total Assets under Custody 54% 34% 12% Stocks ETF Other Product Split DEGIRO Assets under Custody Corporate Presentation
Page 37
Enhancing Saving Plans offering to ensure state-of-the-art product choice Increasing need to address the pension gap across Europe • Addition of stock saving plans (fractional shares) • Increasing flexibility of system allowing for shorter intervals / higher number of execution days • Introduction of products tailored to lower- risk categories Saving Plans and Fractional Shares – preparing for pension reforms 37 Enhancing Savings Plans in Germany German pension reforms • General need in Europe, especially in Germany • Long-term attractiveness of online brokerage platforms driven by growing interest in capital markets and expected retail stickiness • Mid-term impact depending on speed of implementation and specific design of state subsidies and permitted products Corporate Presentation
Page 38
Business Process Outsourcing – full-service offering seamlessly integrated as white-label solution into partner bank's market presence Retail Investor • Overnight deposits • Term deposits Non-retail bank • Outsourcing Management Online Banking IT-System Infrastructure IT-Governance Book-keeping Support of Regulatory Reporting Marketing Service Desk Payments Tax Processing Customer Onboarding Account Management Internal Audit Client Service & KPI Agent Support Deposit contract Outsourcing contract 38 Proven track record since 2013 Corporate Presentation
Page 39
0 1 2 3 4 5 6 7 8 2020 2021 2022 2023 2024 Business Process Outsourcing – offering “Deposits as a Service” in an attractive market Positive interest rate environment and regulatory changes create an attractive market opportunity Leveraging existing B2B business to diversify business model and increase share of recurring revenues 39 AuC development BPO (bn EUR)Building on a tried and tested ancillary business • Proven track record as Business Process Outsourcing provider for investments platforms with currently two clients using flatexDEGIRO’s white label banking solutions to originate deposits • Demand for deposits to diversify funding sources is growing in the banking industry • Opportunity to create meaningful AuC- based recurring revenues, priced at basis points, without own capital requirements Corporate Presentation
Page 40
Mid-term Guidance
Page 41
Ambition for 2027 Accelerate topline growth: • Constantly increase customer base and gradually improve trading activity • Brokerage: Crypto, Securities Lending, saving plans enhancements • Non-Brokerage: Business Process Outsourcing (“Deposits as a Service”) Deliver operational leverage: • Increase share of recurring revenues • Maintain initiated cost discipline • Bring organizational efficiency to peer level • Harmonize IT platform to reduce complexity, costs and time to market Close valuation gap to peers: • Deliver on commercial and financial goals • Be prepared to take advantage of M&A opportunities should they arise • Further improve key elements of good corporate governance 41 Revenues 2027(e) ~ 650 m EUR (+35 % versus 2024); 3-year-CAGR of ~ 10% Net Income 2027(e) ~ 200 m EUR (+78 % versus 2024); 3-year-CAGR of ~ 20 % Corporate Presentation
Page 42
Investor Relations Contact flatexDEGIRO AG Address: Omniturm, Große Gallusstraße 16-18, 60312 Frankfurt/Main, Germany Laura Hecker Director Investor Relations Mail: laura.hecker@flatexdegiro.com Mobile: +49 160 3064 404 Achim Schreck Head of IR and Corporate Communications Mail: achim.schreck@flatexdegiro.com Mobile: +49 160 9277 4570
Page 43
Appendix
Page 44
flatexDEGIRO achieves above-average ESG ratings from the most important rating agencies and achieved another upgrade of its MSCI rating from A to AA in 2025, confirming our clear commitment to sustainability On a sustainable path - strong track record in flatexDEGIRO's ESG ratings Overview of ESG ratings 44 Rating agency (in alphabetical order) Score Explanatory note EcoVadis 52/100 flatexDEGIRO is in the middle of all rated companies (no differentiation by industry group) ISS ESG C- Within the top 20% of the industry group LSEG 67/100 flatexDEGIRO ranks 66/458th in the industry group MSCI AA Upper part of the MSCI ESG rating scale S&P Global 42/100 Within the top 20% of the industry group (avg. score 27) Morningstar/ Sustainalytics 16.4 (Low Risk) Low risk of experiencing material financial impacts from ESG factors (score of 16.4 / 100 with 0 being the best) Corporate Presentation