BEST-IN-CLASS TECHNOLOGY TO ENABLE ACCESS TO FINANCIAL OPPORTUNITIES
Plus500 Ltd.
Annual Report 2022
WELCOME
Plus500 delivered excellent results in 2022, driven by our unique proprietary technology, which underpins our on-going ability to attract and retain higher value customers over the long term. We are in an extremely exciting position, with multiple potential growth opportunities available, particularly in the US futures market, which will continue to drive our development as a global multi-asset fintech group.
With further organic investments and targeted acquisitions, we are confident that Plus500 is well-positioned to deliver sustainable growth over the medium to long-term.
David Zruia
Chief Executive Officer
Plus500 Ltd. ("Plus500", the "Company" or, together with its subsidiaries, the "Group") is a global multi-asset fintech group operating proprietary technology-based trading platforms.
2022 Key Achievements
Excellent performance achieved, driving strong revenue and EBITDA growth:
- Powered by the Group's proven business model and market-leading proprietary technology
- Evidenced by Plus500's on-going ability to attract and retain higher value, long-term customers, with over 24 million worldwide customers registered on its trading platforms since inception
Significant progress made in accessing the substantial institutional opportunity in the US futures market:
- New B2B business line with major revenue opportunity, based on a new strategic position developed by the Group as market infrastructure provider, delivering execution, clearing and brokerage services for institutional clients
- Full clearing firm memberships of the CME Group exchanges and the Minneapolis Grain Exchange (MGEX) obtained
Major headway achieved in accessing the sizeable and growing US futures retail trading market:
- 'TradeSniper', an intuitive new proprietary trading platform, launched in Q3 2022
- 'TradeSniper' provides a highly differentiated, technology- based proposition for Plus500 in the US futures retail market
Further delivery against global strategic growth opportunities:
- Further roll-out of 'Plus500 Invest', the Group's proprietary share dealing platform
- Access to substantial Japanese retail trading market, through acquisition of a regulated entity in Japan
- New regulatory licence obtained in Estonia, to act as additional foundation to Plus500's OTC1 business in Europe
- New regulatory licence from the Dubai Financial Services
Authority ("DFSA") in the high growth market of the UAE obtained in Q1 2023
Plus500's reinforced financial position enables continued investment in growth:
- High level of cash balances maintained, with no debts or loans since the Company's inception
- Continued strong Operating cash conversion2 of 112% (FY 2021: 99%)
Continued focus on key ESG priorities:
- Further expansion of the range of the Board of Directors' (the "Board") experience and continued diversification of its gender composition
- Continued focus on customer care and protection, with launch of the Group's Trading Academy
- Launch of '+Insights', Plus500's new big-data, analytical tool designed to provide OTC customers with access to key trends
Further substantial returns delivered to shareholders, reaching $270.2m, representing 73% of FY 2022 net profits:
- Share buyback programmes in respect of FY 2022 of $180.2m
- Dividend payments in respect of FY 2022 of $90.0m
- A total of approximately $1 .7 billion returned to shareholders since Plus500's IPO in 2013, through dividends and share buybacks
2022 Financial Highlights
Revenue
$832.6m
EBITDA
$453.8m
EBITDA Margin
55%
Cash balance at year end
$930.2m
2022 Operational Highlights
New Customers3
106,549
Active Customers4
280,769
ARPU5
$2,966
AUAC6
$1,481
Strategic report Governance Financial statements
Contents
Strategic Report | ||
Group at a Glance | 2 | |
Chair's Statement | 4 | |
Q&A with the Chief Executive Officer | 7 | |
Our Strategic Roadmap | 10 | |
Our Strategy in Action | 12 | |
Our Market-Leading Technology | 14 | |
Strong Customer Base | 16 | |
Our Marketing Strategy | 18 | |
Operational Excellence | 20 | |
Our Business Model | 22 | |
Key Performance Indicators | 24 | |
Key Stakeholder Relationships | 26 | |
Our ESG Approach | 28 | |
Report on the Task Force on | ||
Climate-Related Financial Disclosures (TCFD) | 33 | |
Financial and Business Review - Statement | ||
of the Chief Financial Officer | 38 | |
Group Tax Policy | 40 | |
Risk Management Framework | 41 | |
Going Concern and Viability Statement | 46 | |
Governance | ||
Governance at a Glance | 48 | |
Chair's Introduction to Governance | 50 | |
UK Corporate Governance Code Compliance Statement | 51 | |
Board of Directors | 52 | |
Governance Report | 56 | |
Shareholder Engagement | 61 | |
Report of the Nomination Committee | 62 | |
Report of the Audit Committee | 66 | |
Report of the Regulatory & Risk Committee | 73 | |
Report of the ESG Committee | 76 | |
Report of the Remuneration Committee | 79 | |
Directors' Remuneration Report | 85 | |
Directors' Report | 95 | |
Corporate Law | 97 | |
Directors' Responsibility Statement | 99 | |
Financial Statements | ||
Independent Report of the Auditors | 101 | |
Consolidated Statement of Comprehensive Income | 106 | |
Consolidated Statement of Financial Position | 107 | |
Consolidated Statement of Changes in Equity | 108 | |
Consolidated Statement of Cash Flows | 109 | |
Notes to the Consolidated Financial Statements | 110 | |
Further information | ||
Advisors | Inside back cover |
All charts and graphs contained in this Annual Report 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.
- 'Over-the-Counter'products, namely CFDs ('Contracts for Difference').
- Cash generated from operations / EBITDA.
- Customers depositing for the first time.
1Plus500Ltd.Annual Report 2022
- Customers who made at least one real money trade during the period.
- Average Reveue Per User.
- Average User Acquisition Cost.
Group at a Glance
A GLOBAL MULTI-ASSET FINTECH GROUP
Plus500 is a global multi-asset fintech group operating proprietary technology-based trading platforms, and is a constituent of the FTSE 250 index, with a premium listing on the Main Market of the London Stock Exchange (symbol: PLUS). Plus500 offers customers a range of trading products, including OTC, share dealing, as well as futures and options on futures.
50+ | 500+ |
Countries where customers | Employees globally |
can access Plus500's products |
Our purpose | Our strategy |
24+ million
Registered customers on Plus500's platforms since inception
Our values
Enabling trusted and intuitive access to financial opportunities
Across financial instruments
Through a broad range of innovative products
Across countries
Through global scale with localised services
Across devices, platforms and systems
Through best-in-class technology
Well positioned to access a range of significant growth opportunities
Plus500's strategy is to further develop its position as a global multi-asset fintech group by launching new products, entering new markets, expanding its offering in existing markets and deepening engagement with customers
Technology driven
Our state-of-the-art proprietary technology enables our product leadership and agility
Strive for excellence
We do not compromise on the quality of our products or on the talent of our people
Customer-centric approach Our customers are at the centre of every decision we make, to ensure we deliver best-in-classservice
Committed to operating sustainably and responsibly We are focused on carrying out a range of sustainability initiatives to deliver tangible value for our stakeholders
Read more on pages 4 - 9 | Read more on pages 10 - 13 | Read more on pages 28 - 32 | ||
2Plus500Ltd.Annual Report 2022
Strategic report | Governance | Financial statements | ||||||
To find out more about our Group visit:
www.plus500.com
Our Global position
US | Estonia | |||||||||||||||||||||||||||||||||||||||
UK | ||||||||||||||||||||||||||||||||||||||||
Bulgaria | Japan | |||||||||||||||||||||||||||||||||||||||
Cyprus | Israel | |||||||||||||||||||||||||||||||||||||||
UAE | Singapore | |||||||||||||||||||||||||||||||||||||||
Seychelles | ||||||||||||||||||||||||||||||||||||||||
Australia
Global operations | Plus500 licences |
Plus500 global operations are managed by highly | The Group's portfolio of 12 regulatory |
skilled and experienced local management teams. | licences is an increasingly valuable asset. |
Our competitive advantages and differentiators
Our technology
Powers our products, operations, marketing and our approach to risk management
- Proprietary, wholly owned, managed and operated by Plus500
- Drives our customer- centric approach
- Continued significant investment in R&D to drive on-going innovation
- Supports our continued alignment with relevant global regulatory standards and best practice
Our track record
Strong financial performance since IPO in 2013
- c.25% compound annual revenue growth rate
- Flexible cost base with average annual EBITDA margin of c.57%
- Reinforced financial position, with a strong balance sheet, high levels of cash generation and debt- free since inception
- Approximately $1.7 billion returned to shareholders in dividends and share buybacks
Our leadership, people and culture
Technological expertise embedded across the business
- Highly skilled leadership team with long-standing technological experience
- Strong track record in attracting and retaining the best technology talent in
Israel, the "start-up nation" - Entrepreneurial, high performance culture, with customers at the centre
Our agile business model
Ensuring a customer- centric approach
- Unique edge in attracting and retaining customers through multiple marketing channels
- Proven business model serving customers globally for over a decade
- Strong global brand and reputation
- Best-in-classcustomer experience
- Highly focused on customer care and protection
3Plus500Ltd.Annual Report 2022
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Plus500 Ltd. published this content on 23 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2023 07:32:04 UTC.