Corporate presentation, Frank Niehage, CEO. The leading European infrastructure provider and operator for financial services technologies

Transcription

1 Corporate presentation, Frank Niehage, CEO The leading European infrastructure provider and operator for financial services technologies

2 Table of contents 1. About us 2. The market opportunity 3. Business model 4. Corporate strategy 5. Strategic partnerships 2

3 1. About us: key facts and operational figures Customer cash deposits Number of own B2C Customers approx. EUR 1bn approx. 140k Number of inst. B2B Clients approx. 250 Assets under Admin. (biw AG) Trades p.a. approx. 5bn approx. 10m (forecast based on H figures) Tier 1 Capital approx. EUR 51m Regulatory trapped Cash EUR 40 CRR indicator 14 Locations Frankfurt (Headquarters), Berlin, Düsseldorf, Kulmbach, Willich, Andernach, Zwickau Employees approx. 500 Investors (two of them listed) GfBk Gesellschaft für Börsenkommunikation mbh (43.11%) Heliad Equity Partners (listed on the Frankfurt Stock Exchange) (18.41%) SafeCharge International Group Ltd. (listed on London AIM) (5%) Others (incl. free float) (33.48%) 3

4 About us: stock information Shares outstanding: 16.2m Options outstanding: max. 1.7m Market Cap: EUR 243m (09/11/2015 share price EUR 15.00) ISIN: DE Bloomberg: FLA GY Equity LTM Performance : >100% Share Price (EUR) 18,00 16,00 14,00 12,00 10,00 Reasonable daily trading volume - Approx. EUR 400k/day 8,00 6,00 4,00 2,00 09/2014 New Management Stock covered by Hauck & Aufhäuser - Price target range of EUR 21 0,

5 1. About us: half-year results 2015 FinTech Group AG underpins turnaround and growth strategy with strong half-year operating profit Modified EBITDA under German GAAP of EUR 11.7m in the first half year 2015 XCOM AG fully consolidated for the first time following integration in second quarter Number of executed transactions sets record high (total of 5m trades in the group in the first 6 months) biw AG will develop lending business following bolstering of capital 5

6 1. About us: our business model at a glance B2B Business Technology and white-label banking business for third parties B2C Business Business models operated by FinTech Group AG under own brands B2B Brands Major B2C Brands Leading provider of software and technology solutions for banks and financial services companies in Europe with more than 250 clients German BaFin licensed bank with full range of white label banking services (100% subsidiary of XCOM) Renowned, third largest online broker in Germany with flat fee trading model Approx. 140,000 customers Strong brand in Germany European expansion in progress Continuous product development Professional trading for highly active investors kesh: mobile payment system benk: B2C online bank with a large porfolio of products 6

7 1. About us: B2B Service Portfolio Leading provider of software and technology solutions for banks and financial services companies in Europe with more than 250 clients German BaFin licensed bank with full range of white label banking services (100% subsidiary of XCOM AG) Trading Trading system Market maker system Trading platforms Market and price data supply E-Banking Payment platform SEPA platform incl. mandate management Online banking Secure transactions Payment Payment services (physical and electronic) Mobile payment "kesh" Card processing ATM operations (incl. mobile payment) Banking Business process outsourcing (white-labeling) Core banking Reporting systems (client, regulatory, etc.) 7

8 1. About us: company history Incorporation of PRE.IPO AG in Kulmbach Change of name into flatex AG Start of CFD- Trading IPO flatex AG Aktionärsbank GmbH obtains banking license Acquisition of CeFDex 1 (100%) flatex Holding AG FinTech Group AG New Senior Management Take-over of strategic majority in XCOM AG Significant speeding up Incorporation XCOM BCC in Langen Merger of 12 group companies XCOM AG Acquisition of XCOM-Bank Incorporation of biw AG für Investments und Wertpapiere AG (minority stake in the beginning) Investment in ViTrade AG Full take-over of biw AG (100%) für Investments und Wertpapiere AG New owner FinTech Group AG 8

9 1. About us: current organisational chart 100% 100% 100% 51 % 1 % 3 % will be wound down / sold / merged will be wound down / sold / merged Via XCOM Finanz GmbH (100%) 100% 100% As of

10 1. About us: we are in the middle of a transformation process Past Present Future Only one relevant shareholder, no relevant free float Business model focused on online brokerage (B2C) Limited strategic partnerships DACH focus only; no strategic partnerships More diversified shareholder structure, no majorities left, relevant free float Running B2B and B2C businesses with enormous growth potential Already 2 strategic partnerships signed in 2015 DACH focus, first internationalization steps Diversified shareholder structure and strong free float B2B and B2C innovation engine based on stable and recurring businesses Further operational / equity / strategic partnerships European market leader within the FinTech infrastructure segment 10

11 1. About us: future organisational chart 100% up to 100% % via XCOM Finanz GmbH (100%) uses liability umbrella of biw 100% B2C currently online brokerage B2B IT services B2B Banking services 9

12 1. About us: new senior management (since Aug 14) Frank Niehage CEO (since ) Vast experience across all segments of retail and commercial banking. Previously a Managing Director at Goldman Sachs. He was also instrumental in the growth of Bank Sarasin AG as CEO in Germany. Martin Korbmacher Chairman of the Supervisory Board (since ) Extensive experience and expertise in both traditional banking and financial services technologies. Previously Global head of equities at Dresdner Kleinwort and Investment banking head of Germany and Austria for Credit Suisse ( ) 12

13 2. Market opportunity: banks and FinTech companies Source: Paymentandbanking.com 13

14 2. Market opportunity: banks vs. FinTech unicorns 49,0 45,1 Market capitalisation of the world s 5 largest FinTech companies (USD 78 bn) is already larger than the market capitalisation of the five biggest listed German banks (USD 67 bn) Wirecard, as a FinTech Group comparable, shows a revenue multiple of 8.5x - Our revenue multiple today is ~3.0x 16,5 9,6 8,0 6,0 5,6 5,1 5,0 4,8 FinTech group comparable FinTech company Bank Market cap in USD bn Source/figures: Barkow Consulting 14

15 3. Corporate strategy: our ambition Our goal To be the platform and infrastructure provider of choice for the financial service industry in Europe To become one of the leading, highly profitable FinTech companies in Europe Strategic steps (1) restructuring of the existing B2C business (DONE) + (2) new business line B2B (DONE) + (3) strategic acquisitions and new B2C lines (DONE & ONGOING) + (4) boost of organic growth of existing B2C business (IN PROGRESS) Gearing up to make full use of Group synergies one firm We set up an Executive Committee with members from across all of the Group s entities to ensure a continuous exchange amongst management personnel We also created a Resource & Priority Committee ( integration task force ) to create extensive synergies and achieve maximum efficiency FinTech Group AG has been awarded the (rare) status of leading company (übergeordnetes Unternehmen) for regulatory purposes by the German authorities (BaFin) despite not holding a bank license itself 15

16 3. Corporate strategy: roadmap next 24 months 1 Last 12 months TODAY Next months Fixed agenda Additional upside Improved tech expertise by Xcom acquisition Strengthened capital base 90+ Group wide IFRS Reporting (incl. segment reports) Enter Prime Standard of Frankfurt Stock Exchange to increase transparency and trading volume 100+ Implement technology based lending with the potential to generate an additional EUR 10+ million (do-it-yourself and / or partner with existing players) 22,7 Implemented high class management team and subsequent restructuring actions Closed CFD deal with Commerzbank (strategic partnership) 20+ Boost of organic growth of existing B2C business Sale of loss making AKTIONÄRSBANK to free up EUR 14m regulatory capital, improve annual earnings and pool banking activities in biw AG 35+ Further strategic acquisitions & partnerships -8,0 2014a 2015e 2016e EUR m Net Sales adj. EBITDA² (1) Guidance does not include revenues and earnings derived from additional upside ; some of the planned measures may already be implemented within the next six (6) months and thus positively effect the 2015 P&L statement. (2) Adj. EBITDA includes operations related interest income and expenses 16

17 3. Corporate strategy (1): flatex as Bank 4.0 Flatex is the current market leader in the areas of usability, transparency and transaction costs. Our goal is to shift flatex s online brokerage business model to a modern, state of the art and mobile fully fledged online bank business model and to roll out new products (incl. debit/credit cards) vertical integration to gain a larger share of wallet (a recent survey proved that more than 60% of our customers are willing to increase their business activities with flatex). Through the acquisition of XCOM AG/biw AG, we are uniquely placed to achieve vertical integration at an extremely low cost as the systems and products are already in place. We have greatly increased our number of customers in Austria (by more than 8 times since Jul 2015) and will continue to build on this success. We seek to expand into other European countries in 2015/16 and are currently targeting a number of Central and Eastern European markets horizontal integration. 17

18 3. Corporate strategy (2): technology-based lending biw AG currently holds approx. EUR 1bn in customer deposits. These deposits are not currently being actively used for lending, and until now have not been incorporated into the Group's financial planning. Management of part of these deposits could generate an additional income of at least EUR 10m from 2016 onwards. Recent statistics and surveys show that there is an appetite for convenient and digital consumer lending. 18

19 3. Corporate strategy (3): fostering FinTech ideas We developed our own multichannel mobile payment system which will be rolled out in Germany in We set up our own start-up lab in the heart of Berlin to attract and cooperate with innovative start-up businesses. By continuing to evaluate trends, developing our own IT-based disruptive solutions and supporting inventive start-ups, we seek to position ourselves as a pioneer in the fastmoving and vibrant FinTech space. 19

20 4. Kesh: our multichannel payment solution Interaktion mit Geldautomaten Geld von kesh-account auszahlen kesh von EC-/Kreditkarte aufladen Zahlungen unter Privatpersonen Geld überweisen Geld einfordern Webshop Zahlung im Online-Handel ecommerce Übergabe von Adressdaten Zahlungsfreigabe in kesh Kasse Kasse Social Banking Anlage von Kontakten Anlage von Lieblingshändlern Zahlung am POS Smartphone / Tablet Monitor mit Internetzugriff Integration in Kassensystem Mehrwert-Services Gutscheincodes Browser-Zugriff Backendintegration Anbindung an Drittsysteme über API 20

21 Annexes 21

22 I. Market opportunity: from offline to online Travel Agency Commerce Online saturation of markets e.g.: e.g.: We aim to play a leading role in the upcoming transformation of the financial services sector from offline to online With our online broker FLATEX we have already proven that we were able to successfully disrupt offline markets within a very short period of time Advertising.. e.g.: Our subsidiary biw has its own commercial banking license which can act as engine on which new B2C business lines can jumpstart on Financial Services low HUGE POTENTIAL high In addition to providing first class B2B services, we will also focus on improving our existing and creating new B2C businesses 22

23 I. Market opportunity: financial services sector s 7 segments transformation & corporate finance data, technology and infrastructure no single segment, rather a supporting function for other segments business & corporate banking wealth & asset management FINANCIAL SERVICES retail banking & consumer finance insurance & risk management capital markets & trading payments 23

24 I. Market opportunity: only 4 sectors are truly online transformation & corporate finance business & corporate banking data, technology and infrastructure wealth & asset management retail banking & consumer finance FINANCIAL SERVICES insurance & risk management capital markets & trading payments 24

25 I. Market opportunity: rise of virtual banking Threat to retail banking from new market participants: next 3 years (International) Threat to retail banking from new market participants: next 3 years (Germany) Source: Roland Berger (2014) Source: Roland Berger (2014) 25

26 I. Market opportunity: banks and FinTech companies (1) Source: Paymentandbanking.com 26

27 II. Strategic partnerships (payments and CFDs) In May 2015, we entered into a strategic partnership with payment service provider SafeCharge Project Phase 1 (completion 2015): processing of SafeCharge customers payments Project Phase 2 (anticipated completion 2016): white label bank for SafeCharge ( SafeCharge Bank ) Project Phase 3 (anticipated completion 2016): potential lending to e-commerce merchants In June 2015 we closed a strategic long-term CFD partnership with Commerzbank Key commercial points of the deal are: Cooperation will begin in Q and will run for seven years (until 2022) Commerzbank takes over FinTech Group AG s entire CFD orderflow execution (as market maker) FinTech Group AG received a double digit million amount upfront and will receive 40% of profits each year Key business impacts for FinTech Group AG are: FinTech Group AG significantly reduces its cost base and avoids investments in IT infrastructure Wind-down of CefDeX frees up regulatory capital and reduces overall risk exposure 27

28 THANK YOU Contact details Frank Niehage CEO FinTech Group AG Rotfeder-Ring Frankfurt, Germany All information in this presentation is PUBLIC knowledge This presentation contains forward-looking statements that are subject to risks and uncertainties that could cause the company s actual operating results to differ materially from those indicated by the forward-looking statements. The company expressly exclaims any obligation to update and revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Detailed information on FinTech Group can be found on the company s website at 28