FY 2022 PRELIMINARY RESULTS London Stock Exchange symbol: PLUS Presented by: David Zruia, Chief Executive Officer Elad Even-Chen, Chief Financial Officer 14 February 2023 AGENDA OVERVIEW OPERATING REVIEW FINANCIAL OVERVIEW OUTLOOK OVERVIEW A LONG TRACK RECORD OF PROFITABLE GROWTH & CASH GENERATION Debt-free since inception 101% average annual Operating cash conversion¹ 2013-2022 Since IPO year in 2013, Plus500 has generated: Cash from operations 25% CAGR revenue growth between 2013-2022 driven by growing customer base c.57% average annual EBITDA margin 2013-2022 through flexible and efficient cost structure Accumulated net profit $1.7bn returned to shareholders including $1.2bn in dividends and $0.5bn in share buybacks 1. Operating cash conversion – Cash generated from operations/EBITDA 4 FY 2022 – ANOTHER EXCELLENT PERFORMANCE 24M+ Registered Customers 12 International Operating Licenses 112% Operating Cash Conversion Over $900m Cash1 and no debt $1.7bn Shareholder Returns since IPO in 2013 #1 OTC2 Provider in the UK, Germany and Spain3 500+ Employees Globally 50% Female Board c.$8,000 Deposit per Active Customer4 50+ Countries 3 Product Categories REVENUE ($M) EBITDA ($M) 58% 64% 48% 46% 59% 70% 54% 59% 54% 55% 115 229 276 328 437 355 67 145 133 151 259 192 506 516 387 454 720 873 833 719 % margin 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1. As at 31 December 2022 2. OTC (‘Over-the-Counter’) products, namely CFDs (‘Contracts for Difference’) 3. Market position data source: 2022 Investment Trends Leverage Trading Reports for UK, Germany and Spain 4. Active Customers – Customers who made at least one trade during the period 5 FY 2022 – ANOTHER EXCELLENT PERFORMANCE Growth in all key financial metrics in FY 20 22 c o m p a re d with FY 20 21 $832.6m $453.8m Revenue EBITDA 55% EBITDA Margin $3.81 EPS (basic) $930.2m Cash Balances (16% Growth) (17% Growth) (2% Growth) (25% Growth) (24% Growth) STRATEGY Further development of Plus500’s position as a global multi-asset fintech group Significant progress in evolving Plus500’s position in the US futures market Supported by more innovation and technological developments On-going organic investments and targeted acquisitions Gender diversification of the Board continues with female representation now at 50% Further donations made to local communities and charities Continued focus on customer care, with new educational tools introduced in FY 2022 High-performance organisational culture further embedded at Plus500 Governance & Sustainability Strategy 6 PLUS500 WELL PLACED TO DELIVER GROWTH AND VALUE Robust track record of growth and value delivery Proprietary technology is a key differentiator and growth enabler Diversified product portfolio and geographic footprint Organic investments and targeted acquisitions Reinforced financial position enables continued investment in growth and attractive shareholder returns Major growth opportunities available to drive future shareholder value 7 OUR TECHNOLOGY CAPABILITY AND FUNNEL Technology-Centric Business Model Marketing Tech CRM Payments Education Trading & Risk Management Customer Engagement Technology Components Supporting End-to-End Customer Lifecycle CUSTOMERS PRODUCTS MARKETING RISK Customer centric culture Continuously upgraded educational and training tools 24/7 customer service availability Wide range of products: OTC, share dealing, futures and options on futures Feedback driven innovative product cycle Multi channel, inter-connected strategy Market leading technology driven approach Continued focus on innovation, including AI, big data and analytics Proprietary risk management technology with real-time functionality including predefined risk limits 8 OUR STRATEGIC ROADMAP New Products New Markets Expanding Offering in Existing Markets Deepening Customer Engagement 9 OPERATING REVIEW FY 2022 OPERATING OVERVIEW KEY OPERATIONAL DRIVERS OPERATIONAL OUTPUTS Our proprietary technology Continued investment in our people Deeper engagement with our long term, high value customers Major focus on product development 87% of OTC revenue derived from customers trading with Plus500 for over a year Customer deposits of $2.3bn, highlighting on-going customer loyalty 85% of OTC revenue generated from mobile or tablet devices 11 THE US GROWTH OPPORTUNITY INSTITUTIONAL OPPORTUNITY RETAIL OPPORTUNITY Execution B2B New B2B line of business as a market infrastructure provider Brokerage-execution and clearing services for institutional clients Long-standing proprietary technology futures trading platform Clearing Full Clearing Firm Member of the CME Group Exchanges and MGEX Growing relationships with Introducing Brokers and institutional parties Launched TradeSniper, intuitive new trading platform, designed for retail traders Fully holistic, technology-based solution available for the first time for US futures retail customers Driven by Plus500’s robust financial position and highly differentiated technological capabilities 12 FINANCIAL HIGHLIGHTS Strong revenue performance Efficient cost base supported EBITDA growth Continued high cash generation and conversion Reinforced balance sheet Plus500 continues to hold no debt or loans Graph key: H1 H2 REVENUE ($m) EBITDA ($m) EARNINGS PER SHARE (Basic) ($) 327.9 437.2 720.4 354.5 872.5 718.7 832.6 151.0 259.2 506.0 192.3 515.9 387.1 453.8 1.02 1.75 3.33 1.35 4.71 3.06 3.81 308.3 321.2 254.9 372.5 157.0 154.1 564.2 511.4 349.0 199.5 361.8 465.5 248.8 169.1 206.5 346.2 188.4 158.8 148.0 140.7 118.5 91.9 59.1 126.7 187.6 65.6 148.5 305.3 1.03 2.30 0.96 0.79 0.63 0.39 0.90 0.45 1.73 2.98 1.44 1.62 1.35 2.46 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 13 FY 2022 KPIS BY REGION UK EEA Australia RoW1 Total Active Customers % proportion New Customers2 % proportion Revenue ($m) % proportion 37,627 162,747 28,252 52,143 13% 58% 10% 19% 16,101 59,501 11,051 19,896 280,769 100% 106,549 15% 56% 10% 19% 100% 100.4 372.9 67.2 292.1 832.6 12% 45% 8% 35% 100% ARPU3 ($) 2,667 2,291 2,379 5,602 2,966 Active Customers base reflects substantial amount of high value, long term customers Revenue performance driven by differentiated technological offering Record annual ARPU achieved during 2022 1. RoW – Rest of World 2. New Customers – Customers depositing for the first time 3. ARPU – Average Revenue Per User 14 OUR PRODUCT OFFERINGS TRADING PLATFORMS Across operating systems: Webtrader iOS (Mobile & iPad) Android (Mobile & Tablets) 30 Languages SUPPORTING PROPRIETARY TECHNOLOGIES CRM Marketing Machine Retention Machine Localisation Cashier Risk Management Education 15 MARKET POSITIONS LEADING INDUSTRY POSITIONS IN CORE OTC MARKETS IN EUROPE OTC Market Share1 (%) EVOLVING MARKET POSITION IN THE US FUTURES MARKET CUSTOMER FEEDBACK No.1 provider Plus500 Next largest provider 18% 16% 16% 15% 18% 15% Developing position as market infrastructure provider Launched TradeSniper tailored for retail market “Excellent platform to trade CFDs, helpful staff, never had any issues“ “Great platform and easy to use“ 1. Market position data source: 2022 Investment Trends Leverage Trading Reports for UK, Germany and Spain 16 MARKETING INVESTMENT Cumulative average revenue per OTC Active Customer over time $5,500 $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Time since first deposit 2015 2016 2017 2018 2019 2020 2021 2022 Targeted, efficient online marketing initiatives driven by Plus500's proprietary technology Supported by investment in advertising campaign featuring actor Kiefer Sutherland and partnership with the NBA Chicago Bulls - to drive global brand awareness 17 PLUS500’S LONG TERM CUSTOMER LOYALTY AND RELATIONSHIPS 8% 4% 12% 23% 11% 11% 14% 6% 4% 16% 17% 24% 3% 10% 16% 16% 24% 28% 19% 73% 53% 73% 46% 66% 28% 79% 44% 16% 87% 47% FY-2018 FY-2019 FY-2020 FY-2021 FY-2022 0-6 months 7-12 months 1-3 years 3-5 years 5+ years >1 year Significant increase in longevity of Plus500’s customer base since 2017: OTC customers trading with Plus500 for >1 year (% of total OTC revenue) 87% 66% 53% Long term, sustainable customer relationships – a key value driver for Plus500 Product diversification enables continued customer longevity Supported by new customer retention initiatives, including Premium Service 2017 2020 2022 18 HIGH RETURN ON MARKETING INVESTMENT Cumulative Return from OTC Registrations ($m) 2018 REGISTRATIONS AND CUMULATIVE RETURNS 2019 REGISTRATIONS AND CUMULATIVE RETURNS 2020 REGISTRATIONS AND CUMULATIVE RETURNS 2021 REGISTRATIONS AND CUMULATIVE RETURNS Cumulative cohort revenue Cumulative cohort revenue Cumulative cohort revenue Cumulative cohort revenue Marketing investment Marketing investment Marketing investment 634 Marketing investment 459 384 320 285 221 162 444 230 46 (96) (221) (172) 202 134 (125) 202 98 2018 2019 2020 2021 2022 2019 2020 2021 2022 2020 2021 2022 2021 2022 19 PLUS500’S PORTFOLIO OF INTERNATIONAL LICENCES CONTINUES TO GROW United Kingdom Australia South Africa New Zealand USA Jul 2021 Japan Mar 2022 Up to FY 2019 Cyprus Singapore Israel Seychelles Jan 2020 Estonia Feb 2022 UAE Feb 2023 20 FINANCIAL OVERVIEW INCOME STATEMENT FY 2022 FY 2021 % Change Revenue Selling and Marketing Expenses Administrative and General Expenses EBITDA EBITDA Margin Financing Income, net Tax Expenses Net Profit 832.6 718.7 302.1 279.8 54.3 387.1 54% 80.1 453.8 55% 23.9 1.8 1,228% Excellent top line performance supported by consistent Customer Income¹ throughout the year 16% 8% 48% 17% 2% 103.9 75.8 370.4 310.6 37% 19% Helped to deliver another strong EBITDA performance supported by Plus500’s lean and efficient cost base 1. Customer Income – Revenue from OTC Customer Income (customer spreads and overnight charges) and Non-OTC Customer Income (commissions from the Group's futures and options on futures operation and from Plus500 Invest, the Group's share dealing platform) 22 COST PROFILE Advertising, technology and marketing investment Commissions to processing companies Payroll and related expenses Variable bonuses Share-based compensation Server & data feeds commissions Professional and regulatory fees Depreciation and amortisation Other costs Total costs FY 2022 FY 2021 % Change 157.8 172.1 (8%) 44.9 40.8 10% 40.5 19.0 21.4 14.6 23.0 3.4 57.6 33.0 14.2 11.7 11.7 18.5 2.5 29.6 382.2 334.1 23% 34% 83% 25% 24% 36% 95% 14% Other Costs including US operation related expenses and one time brand campaign related costs Continued high levels of marketing investment To drive high potential levels of returns over time Fixed Variable* 30% FY 2022 70% Lean and efficient cost structure Technological marketing investment to deliver customer attraction and retention Provides opportunity to drive ROI Control over expenses due to Plus500’s flexible cost structure *Variable - advertising technology and marketing investment, variable bonuses, Commissions to processing companies and other variable costs 23 BALANCE SHEET FY 2022 FY 2021 % Change FY 2022 FY 2021 % Change Cash and Cash Equivalents 930.2 749.5 Other Current Assets Total Current Assets Non Current Assets Total Assets 27.1 32.7 957.3 782.2 52.7 40.6 1,010.0 822.8 24% (17%) 22% 30% 23% Current Liabilities Non Current Liabilities Total Liabilities Equity 219.0 10.5 229.5 780.5 157.0 4.5 161.5 661.3 Total Liabilities and Equity 1,010.0 822.8 39% 133% 42% 18% 23% Plus500 remains debt-free No debt on balance sheet since inception Balance Sheet reinforced Due to another strong financial performance in FY 2022 Plus500 remains well placed to invest in future growth through organic investment and targeted acquisitions 24 OPERATING ACTIVITIES: Cash generated from operations Interest received, net Income tax received (paid), net Net cash provided by operating activities INVESTING ACTIVITIES: Acquisition of subsidiaries, net of cash acquired Purchase of property, plant and equipment Net cash used in investing activities FINANCING ACTIVITIES: Payment of principal in respect of leases liability Acquisition of the Company's shares by the Company Dividend paid Net cash used in financing activities Losses from exchange differences on cash & cash equivalents Balance of cash and cash equivalents at end of the year CASH FLOW FY 2022 FY 2021 % Change 506.8 383.0 13.5 (66.2) 6.2 16.3 32% 118% (506%) 454.1 405.5 12% (4.6) (0.8) (32.5) (86%) (0.8) - (5.4) (33.3) (84%) (2.3) (2.0) (138.8) (64.9) 15% 114% (119.9) (144.9) (17%) (261.0) (211.8) (7.0) 930.2 (4.8) 749.5 23% 46% 24% Continued increase in cash balances to $930.2m at year end Driven by strong cash generation Continued strong cash generation - Operating cash conversion of 112% (FY 2021: 99%) Driven by strong EBITDA performance and low capital intensive nature of Plus500 Cash generative business dynamics help to drive shareholder returns $119.9m paid as dividends in FY 2022 $138.8m utilised for share buybacks in FY 2022 25 OUR APPROACH TO CAPITAL ALLOCATION REQUIRED REGULATORY CAPITAL AND ADDITIONAL RISK MANAGEMENT CAPITAL: CURRENT SURPLUS CAPITAL: c.$550M* OF REQUIRED CAPITAL – COVERING: UP TO c.$380M* TO BE INVESTED IN: Regulatory Capital Working Capital Risk Management & Hedging Clearing * As at 31 December 2022 Growth Opportunities Through organic investments and targeting additional acquisitions Shareholder Returns Through share buybacks and dividends * As at 31 December 2022 26 OUR APPROACH TO SHAREHOLDER RETURNS Shareholder returns policy: At least 50% of net profits will continue to be paid to shareholders through share buybacks and dividends on a half-yearly basis At least 50% of shareholder returns to be made by way of share buybacks in line with preference for share buybacks highlighted by major Plus500 shareholders Special share buybacks or other distributions will also be considered on a half yearly basis SINCE 2013 SHAREHOLDER RETURNS $1.7bn FY 2022 SHAREHOLDER RETURNS $270.2m $2.3bn $370.4m $0.5bn $1.7bn $1.2bn 74% $270.2m 73% $150.0m Special & Final $120.2m Interim Net profit Share buybacks & dividends Total return Net profit Total return Share buybacks & dividends 27 OUTLOOK OUTLOOK OUTLOOK Based on Plus500’s significant progress over recent years, the Board remains confident about the Group’s future prospects Plus500 remains well positioned to access a range of significant opportunities to grow and diversify its business FY 2023 GUIDANCE For FY 2023, the Board expects Plus500’s performance to be in line with current market expectations¹ 1. Market expectations based on compiled analysts’ consensus forecasts, which can be found on the Investor Relations section of the Company’s website. As at 14 February 2023, consensus forecasts for FY 2023 revenue and EBITDA are $605.1m and $270.7m, respectively. 29 Q&A DISCLAIMER The Presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of the Company, nor shall it (or any part of it), or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract whatsoever relating to any securities. The Company does not accept any responsibility for the accuracy or completeness of any information reported by the press or other media, nor the fairness or appropriateness of any forecasts, views or opinions express by the press or other media regarding the Group. The Company makes no representation as to the appropriateness, accuracy, completeness or reliability of any such information or publication. The Presentation is being made, supplied and directed only at persons in member states of the European Economic Area who are qualified investors within the meaning of Article 2(1)(e) of the Prospectus Regulation (EU) 2017/1129; or if in the United Kingdom, persons who are qualified investors, being persons falling within the meaning of article 2(e) of Prospectus Regulation (EU) 2017/1129 as it forms part of domestic law by virtue of the European union (withdrawal) act 2018 and who are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (investment professionals) or (b) fall within Article 49(2)(a) to (d) of that Order (high net worth companies, unincorporated associations etc.) (all such persons being "Relevant Persons"). Any person who is not a Relevant Person may not review the Presentation and should not act or rely on this document or any of its contents. Any investment or investment activity to which the Presentation relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Forward-looking statements are identified by their use of terms and phrases such as “believe”, “targets”, “expects”, “aim”, “anticipate”, “projects”, “would”, “could”, “envisage”, “estimate”, “intend”, “may”, “plan”, “will” or the negative of those, variations or comparable expressions, including references to assumptions. The forward looking statements in the are based on current Presentation expectations and are subject to known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from those expressed or implied by such forward looking statements include, but are not limited to, those described in the risk factors. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of such entity and the environment in which each will operate in the future. All subsequent oral or written forward-looking statements attributed to the Company or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. The Presentation is provided for general information only and does not purport to contain all the information that may be required to evaluate the Company or its securities and does not replace the information included in the Company Reports which may be found at: https://www.plus500.co.il/Investors/CompanyReports. The information in the Presentation is provided as at the date of the Presentation (unless stated otherwise) and is subject to updating, completion, revision and is not independently verified. No reliance may be placed for any purpose whatever on the information or opinions contained or expressed in the Presentation or on the accuracy, completeness or fairness of such information and opinions. To the extent permitted by law or regulation, no undertaking, representation or warranty or other assurance, express or implied, is made or given by or on behalf of the Company or any respective parent or subsidiary undertakings or the subsidiary undertakings of any such parent undertakings or any of their respective directors, officers, partners, employees, agents, affiliates, representatives or advisors, or any other person, as to the accuracy, completeness or fairness of the information or opinions contained in the Presentation. Save in the case of fraud, no responsibility or liability is accepted by any person for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred, however arising, directly or indirectly, from any use of, as a result of the In addition, no duty of care or otherwise is owed by reliance on, or otherwise in connection with, the Presentation. any such person to recipients of the Presentation or any other person in relation to the Presentation. Nothing in the Presentation is, or should be relied on as, a promise or representation as to the future. The Presentation includes certain statements, estimates and projections provided by the Company in relation to strategies, plans, intentions, expectations, objectives and anticipated future performance of the Company and its In particular, unless otherwise specifically stated, the financial information in the Presentation has not subsidiaries. been audited. Each forward-looking statement speaks only as at the date of the Presentation, Except as required by law, regulatory requirement, the Listing Rules and the Disclosure Guidance and Transparency Rules, neither the Company nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. By their nature, such statements, estimates and projections involve risk and uncertainty since they are based on various assumptions made by the Company concerning anticipated results which may or may not prove to be correct and because they may relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company’s ability to control or predict. No representations or warranties of any kind are made by any person as to the accuracy of such statements, estimates or projections, or that any of the events expressed or implied in any such statements, estimates or projections will actually occur. The Company is not under any obligation, and expressly disclaims any intention, to update or revise any such statements, estimates or projections. No statement in the Presentation is intended as a profit forecast or a profit estimate. All charts and graphs contained in this Presentation are graphical representations of the underlying data to which each chart or graph relates and have been included to aid interpretation of such data and are therefore included for illustrative purposes only. The Presentation does not constitute or form part of an offer or invitation to issue or sell, or the solicitation of an offer to subscribe or purchase, any securities to any person in any jurisdiction to whom or in which such offer or solicitation is unlawful, and, in particular, is not for distribution in or into Australia, Canada, Israel, Japan, the Republic of South Africa or the United States of America. The Presentation contains statements that are or may be forward-looking statements. All statements other than statements of historical including statements that relate to the Company's future prospects, developments and strategies. the Presentation may be forward-looking statements, facts included in 31 THANK YOU
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