Successful adaptation to change Financial figures as of 30th June 2013 5th August 2013 2013 Hypoport AG
Contents 1. Market environment 2. Performance of business units 3. Overview of key performance indicators 4. Hypoport s shares 5. Outlook
Second quarter characterised by short considerable rise of interest rate Interest rate development since 2007 % 6 ECB central rate Garantied rate of insurances DGZF 10-years 5 4 3 3 2 1 0 2007 2008 2009 2010 2011 2012 2013
2 of 3 business units are negatively influenced by current crisis Influence of macro-economic environment on Hypoport s business models 4
Diversified business models encounter differentiated environment Development of market environment compared to 2012 Private financing Private Insurance 5 Simple bank products Bausparen Commercial financing
Contents 1. Market environment 2. Performance of business units 3. Overview of key performance indicators 4. Hypoport s shares 5. Outlook
Three business units one enterprise Business unit Private Clients 7
Positive trend in mortgage finance continues Key figures of the business unit Private Clients Transaction volume: loan brokerage (billion ) 2.19 3.11 CAGR 28% 3.86 4.59 2,13 2,70 2009 2010 2011 2012 Development of new business: loan brokerage (billion ) 195 185 192 193 CAGR 27% 93 98 Considerable 27% rise of transaction volume loan brokerage. 30% Increase of transaction volume loan brokerage, therefore gain of market shares in a rather faltering market environment despite historically low interest rates and attractive financing conditions Supported by communicating real estate as retirement provision, volume Bausparen rises by 123%. In a highly competitive market, transaction volume personal loan drops by 34%. 8 Source: Bundesbank 2009 2010 2011 2012
Private health insurance reduces transaction volume Key figures of the business unit Private Clients Transaction volume: insurance general insurance private health insurance life insurance 1.0 4.9 Insurance policies under management: million, at 30.6. general insurance 3.2 6.4 10.8 1.2 6.9 5.0 6.5 5.0 11.2 16.3 1.9 14.1 11.5 13.3 5.1 19.4 24.6 3.2 7.3 7.9 25.8 1.2 3.0 4.1 6.8 23.8 39.4 34.2 CAGR 31% 3.5 1.4 6.1 2009 2010 2011 2012 private health insurance life insurance CAGR 30% CAGR 53% CAGR 34% 11.5 26.8 46.8 Insurance market has slowed down dramatically, particularly new business of private health insurance. Transaction volume in this segment declines by 52% to 1,4 million. In spite of likewise difficult market conditions for life insurance, the volume rose by 48% to 6.1 million. Strong rise in new business for general insurance by 193% and existing business by 31% to 85.1 million. Because of the small volume of business, dependency on new business in life insurance and health insurance will continue in the midfuture. For the short term, the missing revenue in life insurance and health insurance can t be counterbalanced. 9 2009 2010 2011 2012
Weak market environment regarding simple financial service products Key figures of the business unit Private Clients Decline of lead number by 38% to 1.9 million Online sales: Number of leads 1,800,000 1.800.000 1,600,000 1.600.000 1,400,000 1.400.000 1,200,000 1.200.000 1,000,000 1.000.000 800,000 800.000 600,000 600.000 400,000 400.000 200,000 200.000 0 Weak business with simple financial service products (e.g. call money), because providers have less demand for account deposits due to ECB cheap money policy. Rising distribution costs because of weak market environment and more intensive competitive environment. Development of personal loans presence online is in cost-intensive pilot phase. 10
Leads are generated efficiently and processed by all distribution channels Lead generation and cross-channelling: private clients Online sales Self-explanatory financial products, e. g. current accounts, car insurances Franchise Sales Branch-based sales: Number of advisors 715 858 11 www.drklein.de www.vergleich.de Leads Advice-intensive sales products, e. g. mortgages, health insurances Broker Sales 440 478 586 H1 2009 H1 2010 H1 2011 3,896 independent financial advisors Advice-intensive sales products, e. g. mortgages, health insurances Lead fee commission
Weak health insurance business weighs on business unit s results Key figures of the business unit Private Clients Revenue CAGR 17% 24.2 28.4 Ongoing positive trend in mortgage finance. EBIT 0.9-1.3 Situation remains difficult for insurance industry since pension products suffer from low interest and private health insurance continues to be slow. Only general insurance market stays in firm condition. Low interest level leads to reluctant behaviour of banks regarding deposit business. Results of intensive work on revenue and costs will be visible later in the course of the year. 12
Three business units one enterprise Business unit Financial Service Providers 13
Billion Transaction volume exceeds 8 billion for the first time in Q2 Transaction volume of EUROPACE 9 8 Mortgage loans Personal loans Bausparen Financial crisis 7 6 14 5 4 3 2 1 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010 2011 2011 2012 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
GENOPACE Market place for the cooperative banking group New high-potential partners on board Number of partners 13 of the top 25 cooperative banks are partners of GENOPACE. GENOPACE exceeded two billion accumulated transaction volume last year. High investments and long sales cycle for recruiting new partners and intensification of platform use of existing partners continue. Numerous new cooperations in progress - some partners do not engage immediately. 15 65 CAGR 28% 83 First Bauspar products were introduced on the plattform. Q2 2012 Q2 2013 Start: Q II / 2008
FINMAS Financial market place for savings banks Pleasant growth dynamic leads to an optimistic outlook Number of partners 12 of the top 25 savings banks are partners of FINMAS. Pleasant growth in transaction volume. FINMAS already passed one billion accumulated transaction volume in the beginning of 2013. 16 High investments and long sales cycle for recruiting new partners and intensification of platform use of existing partners continue. First meaningful financial institution acts as fully distribution-oriented savings bank. 36 CAGR 56% 56 Implementation of Bauspar supply for first Landesbausparkasse is almost completed. Several projects for gaining partners in new regional assocations. Q2 2012 Q2 2013 Start: Q IV / 2009
Long-term investment pays off Key figures of the business unit Financial Service Providers Revenue* CAGR 21% 12.4 15.0 EBIT* Number of partners 1.9 181 CAGR 48% CAGR 22% 2.8 221 Positive earning development continues. In spite of faltering market environment, transaction volume rose and exceeded eight billion for the first time. Due to low interest rates, clients decide in favour of long fixed interest rates which supports the earnings. Continued growth of low-margin packaging revenue to the benefit of the platform Consistent continuation of platform investments. Progress in connecting new platform partners. 17 * From continued operations
Three business units one enterprise Business unit Institutional Clients 18
Decent development in less high-volume business Key figures of the business unit Institutional Clients Volume of brokered loans Revenue Renewals New business 419 764 201 422 5.7 5.3 Business development within normal volatility. Pipeline well-stocked for the upcoming months. Enduring low interest level leads to observant attitude of the customers. New product ideas, e.g. Dr. Klein Energieeffizienzdarlehen (DEED), in commercial housing industry for Dr. Klein. Additional positive impact expected from adjustment of KfW program for energy-related investments to duration time 10/10/10 in June 2013. 19 EBIT 1.8 1.2 Consulting for real estate investors and emitters shows good business trend above previous year s level.
Contents 1. Market environment 2. Performance of business units 3. Overview of key performance indicators 4. Hypoport s shares 5. Outlook
Results below expectations Summary of Hypoport s key figures as of 30st June 2013 Revenue* 41.9 +16% 48.7 Equity +5% 29.8 31.2 Number of employees (ø) 511 +11% 567 21 EBITDA* 5.4-48% 2.8 EBIT* 2012 H1 2013 3.0-76% 0.7 Group profit 1.52-9% 1.38 * From continued operations
Contents 1. Market environment 2. Performance of business units 3. Overview of key performance indicators 4. Hypoport s shares 5. Outlook
Trading remains at a low level Share price in the first half of 2013 and breakdown of shareholders as of 30st June 2013 Number of shares: 6.194.958 Revenia GmbH (Ronald Slabke, CEO) Kretschmar Familienstiftung Deutsche Postbank AG Sparta AG Free float Stephan Gawarecki 3.0% Hans Peter Trampe 2.8% Other board members: 2.8% Other shareholders 28.2% 36.8% 5.8% 9.7% Development of share prices (Daily closing prices Frankfurt Stock Exchance 2013) 12.9% 34.8% Basic data ISIN DE 000 549 3365 Symbol HYQ Market segment Regulated market Transparency Standard Prime Standard Directors Dealings In the 2nd Quarter the following directors dealings were published: Transaction date Notifiying person/ entity Transaction Designated Sponsor Close Brother Seydler Bank AG Stock Number of Execution exchange shares price 11.06.2013 Thilo Wiegand purchase XETRA 2,000 7.463 23 Research in Q2 2013 Analyst Recomm. Target price Date (DD.MM:YYYY) Montega Buy 10.50 07.05.2013 CBS Research Buy 11.00 06.05.2013
Contents 1. Market environment 2. Performance of business units 3. Overview of key performance indicators 4. Hypoport s shares 5. Outlook
Growth and profitability Outlook for 2013 We will continue to pursue our strategy of acquiring additional market shares in all business units. At the same time we increasingly use the positions we gained to improve our profitablity. Main focus for the B2B financial market place is an increased penetration of the market segments and the entry into product and customer segments which round up the market place. In the Private Clients Unit we aim for a distinct expansion in the number of independent advisors in our branch- and broker network, combined with a systematic improvement of our margin structure. The business unit institutional clients will continue its ongoing growth by using its innovation leadership in the sector and an expansion of its product range. 25 For 2013 we expect two-digit sales growth and a return to income levels of record years.