Half Year 2026 Hypoport SE Earnings Call
Jan H. Pahl: Ladies and gentlemen, welcome to our Q&A session regarding our results today. My name is Jan Pahl. I am Head of Investor Relations at Hypoport, and here together with my colleague, my CEO, Ronald Slabke. Please note that for legal reasons, we have to share that this session will be recorded in a few moments. The rules are as follows. You can put your questions in the chat. Just some bullet points are fine for us. I will rise these questions to Ronald. Also, you can raise your hands, and we give you the right to speak. There is a small blue button on the right side, where you can ask for the rights to rise questions, and then we will hand it over to you.
Jan Pahl: Ladies and gentlemen, welcome to our Q&A session regarding our results today. My name is Jan Pahl. I am Head of Investor Relations at Hypoport, and here together with my colleague, my CEO, Ronald Slabke. Please note that for legal reasons, we have to share that this session will be recorded in a few moments. The rules are as follows. You can put your questions in the chat. Just some bullet points are fine for us. I will rise these questions to Ronald. Also, you can raise your hands, and we give you the right to speak. There is a small blue button on the right side, where you can ask for the rights to rise questions, and then we will hand it over to you.
Speaker #1: Gentlemen, welcome to our Q&A session regarding our results today. my name is Jan Pahl, I'm head of investor relations at Hypoport, and here together I'm with my colleague, my CEO, Ronald Slapke.
Speaker #1: And, please note that for legal reasons we have to share that this session will be recorded, and if you know men's, s, and, the rules are as the follows.
Speaker #1: you can put your questions in the chat, just some bullet points are fine for us, and, I will arise these questions to Ronald. And, also you can raise your hands and we give you the right to speak, there's a small blue button on the right side, where you can ask for, the rights to raise the questions and then we will handle over to you.
Speaker #1: But however, I think the most common way and the past calls was just to write some bullet points in the chat, and we will not share your name, so we will not share the names of investors and publish this.
Jan H. Pahl: However, I think the most common way in the past calls was just to write some bullet points in the chat. We will not share your names, so we will not share the names of investors and publicists. However, names of analysts and journalists, of course, we will share with the community here. I hope that is fine for you. Maybe four moments for the first questions, or Ronald, some intro from your side, or are you right? Okay. Let us kick it off.
Jan Pahl: However, I think the most common way in the past calls was just to write some bullet points in the chat. We will not share your names, so we will not share the names of investors and publicists. However, names of analysts and journalists, of course, we will share with the community here. I hope that is fine for you. Maybe four moments for the first questions, or Ronald, some intro from your side, or are you right? Okay. Let us kick it off.
Speaker #1: However, names of analysts and journalists, of course, we will, share with the community here. I hope that's fine for you. so maybe we'll, for a moment for the first questions.
Speaker #1: or Ronald, some intro from your side, or are you you're right, okay, let's kick it off.
Ronald Slabke: Let us hope for some good first question, I would say.
Ronald Slabke: Let us hope for some good first question, I would say.
Speaker #2: let's hope for some good first question, I would say.
Speaker #1: Okay, okay, okay, we got one. Well, that's a good intro. Hi. So, we got one. The first one is from Olivia Pulvermacher from Deutsche Bank.
Jan H. Pahl: Okay.
Jan Pahl: Okay.
Ronald Slabke: I like that mindset.
Ronald Slabke: I like that mindset.
Jan H. Pahl: That's a good intro. All right. We got one. The first one is from Olivia Pulvermacher from Deutsche Bank. Could you provide a little bit more details on the EUR 1.8 million research tax allowance recognized in H1? Which segment business was related to, and which received the remaining EUR 0.7 million outside insurance? Obviously there is some of this tax reduction related to insurance, but the other one is EUR 0.7 million, which is not in insurance. Which segment is this related to? The second one is, I split this a little bit. The second question is, should we expect further allowance in H2 or even for 2027? Is this more regular now, or is this recurring, non-recurring? This is more the question.
Jan Pahl: That's a good intro. All right. We got one. The first one is from Olivia Pulvermacher from Deutsche Bank. Could you provide a little bit more details on the EUR 1.8 million research tax allowance recognized in H1? Which segment business was related to, and which received the remaining EUR 0.7 million outside insurance? Obviously there is some of this tax reduction related to insurance, but the other one is EUR 0.7 million, which is not in insurance. Which segment is this related to? The second one is, I split this a little bit. The second question is, should we expect further allowance in H2 or even for 2027? Is this more regular now, or is this recurring, non-recurring? This is more the question.
Speaker #1: could you provide a little bit more details on the, 1.8 million research tax allowance, recognized in H1? which segment business which was related to, and, which received the remain, 0.7 million outside insurance?
Speaker #1: So, obviously there is some of this tax reduction, related to insurance, but the other one is 0.7, which is not an insurance, which, segment is this related to?
Speaker #1: And, the second one is, I split this a little bit, the second question is, should we expect further allowance in, H2, or even for 27?
Speaker #1: so is this more regular now or is this recurring, non-recurring, this is more the question.
Speaker #2: Yeah, okay, yeah, yeah, let's start there. First, for the whole group, we'll first have a view at was 1.8 million, you recognized this well.
Ronald Slabke: Yeah. Okay. Let's start there. First, for the whole group, the H1 it was EUR 1.8 million, you recognized as well. EUR 1.1 million was insurance, EUR 0.6 million was real estate and mortgage business, and EUR 0.1 million was financing platform.
Ronald Slabke: Yeah. Okay. Let's start there. First, for the whole group, the H1 it was EUR 1.8 million, you recognized as well. EUR 1.1 million was insurance, EUR 0.6 million was real estate and mortgage business, and EUR 0.1 million was financing platform.
Speaker #2: 1.1 was, insurance, 0.6 was, real estate and mortgage business, and, 0.1 was, financing platform.
Speaker #1: Okay.
Jan H. Pahl: Okay.
Jan Pahl: Okay.
Speaker #2: Yeah, expect this well in the second half of this year, similar type of, let's call it tax returns, linked to investments. that we do.
Ronald Slabke: Yeah. Expect as well in the H2 of this year, a similar type of, let's call it tax returns, linked to investments that we do. Expect this to continue in the upcoming years, as long as German government provide this type of, let's say, subsidies for investing companies here in Germany.
Ronald Slabke: Yeah. Expect as well in the H2 of this year, a similar type of, let's call it tax returns, linked to investments that we do. Expect this to continue in the upcoming years, as long as German government provide this type of, let's say, subsidies for investing companies here in Germany.
Speaker #2: And expect this to continue in the upcoming years as long as the German government provides this type of, let's say, subsidies for investing companies here in Germany.
Speaker #2: And, let's say, the amount may decline; it depends on what is approved and what is not approved. In the first half of this year, there was a significant investment from last year, for which we got tax returns.
Jan H. Pahl: Right. Yeah.
Jan Pahl: Right. Yeah.
Ronald Slabke: let's say, the amount may decline. It depends on what is approved, what is not approved. In the H1 of this year, there were a significant investment from the last years, which we got tax returns for.
Ronald Slabke: let's say, the amount may decline. It depends on what is approved, what is not approved. In the H1 of this year, there were a significant investment from the last years, which we got tax returns for.
Speaker #1: Right. Thanks. I hope this answers the questions. However, if not, Olivia, please come back. Do not hesitate to circle back. The next one is from an investor from the US.
Jan H. Pahl: Right. Thanks. I hope this answers the questions. However, if not, Olivia, please come back. Do not hesitate to cycle back. The next one is from an investor from the US. Could you tell us a little bit more about the market share gains we've seen with Europace in H1 2026? Any specific new innovative features or which have supported that growth, maybe?
Jan Pahl: Right. Thanks. I hope this answers the questions. However, if not, Olivia, please come back. Do not hesitate to cycle back. The next one is from an investor from the US. Could you tell us a little bit more about the market share gains we've seen with Europace in H1 2026? Any specific new innovative features or which have supported that growth, maybe?
Speaker #1: Could you tell us a little bit more about the market share gains we've seen with Finmask in H1 2026? Are there any specific new innovative features which have supported that growth, maybe?
Ronald Slabke: Yes. Let's say, you are aware of this, that in savings banks industry, we are in a joint venture with Finanz Informatik, the centralized IT service provider of the savings banks. Together with them, four years now, we develop integrated solutions to bring Europace technology and marketplace technology and features to the savings banks. Currently we are in a rollout process of, we call it, EFOS. It is an integration of the marketplace feature in the solution of the Finanz Informatik for mortgage applications within savings banks. Let's say the main shift will be actually in the Q3 when not on the application-by-application basis, the user of a savings bank is deciding if he or she uses a Europace feature to compare products for a different application.
Ronald Slabke: Yes. Let's say, you are aware of this, that in savings banks industry, we are in a joint venture with Finanz Informatik, the centralized IT service provider of the savings banks. Together with them, four years now, we develop integrated solutions to bring Europace technology and marketplace technology and features to the savings banks. Currently we are in a rollout process of, we call it, EFOS. It is an integration of the marketplace feature in the solution of the Finanz Informatik for mortgage applications within savings banks. Let's say the main shift will be actually in the Q3 when not on the application-by-application basis, the user of a savings bank is deciding if he or she uses a Europace feature to compare products for a different application.
Speaker #2: yes, so let's say we are you're aware of this that in the savings banks industry we are, in a joint venture with, finance informatic, the centralized IT service provider of the savings banks.
Speaker #2: And, together with them, for four years now, we develop integrative solutions to bring Europe's technology and marketplace technology and features to the savings banks.
Speaker #2: And, currently we are in a rollout process, of we call it, EFOS. This, it's an integration of the marketplace feature in the solution of, the, the finance informatic for, mortgage applications within savings banks.
Speaker #2: And, let's say the main shift will actually be in the third quarter, when—not on an application-by-application basis—the use by a savings bank is being decided.
Speaker #2: If he or she uses a Europe feature to compare products for a different application, but starting in autumn, a savings bank will centrally decide if this feature is obligatory for all applications within the savings bank.
Ronald Slabke: Starting in autumn, a savings bank will centralize, decide if this feature is obligatory for all applications within the savings bank. Not on a case-by-case basis anymore, but for the, let's say the new world starting in Q3, it will be a decision of the savings bank for their whole business. This will boost our penetration of the savings banks industry with the Europace technology.
Ronald Slabke: Starting in autumn, a savings bank will centralize, decide if this feature is obligatory for all applications within the savings bank. Not on a case-by-case basis anymore, but for the, let's say the new world starting in Q3, it will be a decision of the savings bank for their whole business. This will boost our penetration of the savings banks industry with the Europace technology.
Speaker #2: So, not on a case-by-case basis anymore, but for the, let's say, the new world starting in the third quarter, it will be a decision of the savings bank for the whole business.
Speaker #2: And this will boost our penetration of the savings banks industry with Europe's technology.
Speaker #1: Mm-hmm. Okay, thanks. So it's more of an opt-out decision instead of the—
Jan H. Pahl: Okay, thanks. So it is more kind of opt-out decision instead of the
Jan Pahl: Okay, thanks. So it is more kind of opt-out decision instead of the
Speaker #2: Yeah, it's an opt-in for all users of one bank, and not, single user decision anymore how to act.
Ronald Slabke: Yeah, it is an opt-in for all users of one bank and not a single-user decision anymore how to act.
Ronald Slabke: Yeah, it is an opt-in for all users of one bank and not a single-user decision anymore how to act.
Speaker #1: Yeah. Okay, yep, right. Great. So the next one is—oh, it's from another investor from North America. So can you please help us understand the end market growth underpinning the guidance range for the year?
Jan H. Pahl: Yeah. Okay. Yep. Right. Great. The next one is from another investor. It is from North America. Can you please help us understand the end market growth underpinning the guidance range for the year?
Jan Pahl: Yeah. Okay. Yep. Right. Great. The next one is from another investor. It is from North America. Can you please help us understand the end market growth underpinning the guidance range for the year?
Ronald Slabke: Well, we said already in the guidance that there is a positive or potentially negative impact from a market side for our EBIT guidance from EUR -2 to EUR +10 million. The underlying expectation is that we see a slightly declining or a single-digit percent growth of the mortgage market. Plus, there are some other markets as well which are relevant to the overall group performance as well. You can say roughly, when you just look at the mortgage market, in roughly a 10% between the top at the lower end of our market expectation.
Ronald Slabke: Well, we said already in the guidance that there is a positive or potentially negative impact from a market side for our EBIT guidance from EUR -2 to EUR +10 million. The underlying expectation is that we see a slightly declining or a single-digit percent growth of the mortgage market. Plus, there are some other markets as well which are relevant to the overall group performance as well. You can say roughly, when you just look at the mortgage market, in roughly a 10% between the top at the lower end of our market expectation.
Speaker #2: Let's say, as we already stated in the guidance, there is a potential positive or negative impact from the market side on our EBIT guidance.
Speaker #2: From minus 2 to plus 10 million, and let's say the underlying expectation is that we see slightly declining or single-digit percent growth of the mortgage market.
Speaker #2: plus, there are some other markets as well, which are relevant to the overall group, performance as well. So, so you can say roughly a, when you just look on the mortgage market, in, in roughly a 10%, between the top and the, the, the top and the lower end of, our market expectation.
Jan H. Pahl: Right. Thanks. As a follow-up, can you please tell us more about the deal won by Corify?
Jan Pahl: Right. Thanks. As a follow-up, can you please tell us more about the deal won by Corify?
Speaker #1: Right, thanks. There's a follow-up. Can you please tell us more about 'The Dear One' by Corey Phi?
Speaker #2: dear one?
Ronald Slabke: Deal won?
Ronald Slabke: Deal won?
Speaker #1: The deal.
Jan H. Pahl: The deal.
Jan Pahl: The deal.
Speaker #2: Deal.
Ronald Slabke: Deals.
Ronald Slabke: Deals.
Speaker #1: Deals, deals one. So we have, I think it's, it's just, just the census by, by, I assume, because we have a strong increase of the volume.
Jan H. Pahl: Deals won. So we have-
Jan Pahl: Deals won. So we have-
Ronald Slabke: I said R.
Ronald Slabke: I said R.
Jan H. Pahl: I think it is just the sentence, but I assume because we have a strong increase of the volume, so it is 81% plus. If there are any big deals, I think this is more the question.
Jan Pahl: I think it is just the sentence, but I assume because we have a strong increase of the volume, so it is 81% plus. If there are any big deals, I think this is more the question.
Speaker #1: So it's 81% plus, so if there are any big deals, I think this is more the question.
Speaker #2: Yeah, let's say, COREY PHI has, over the last, now 18 months you could say, gained the confidence of,
Ronald Slabke: Yeah. Corify is over the last now 18 months, you can say, gained confidence of let-
Ronald Slabke: Yeah. Corify is over the last now 18 months, you can say, gained confidence of let-
Speaker #1: so sorry, I'm not sure. Maybe we've lost Ronald's 's connection here. pretty sure not Ronald himself, but the connection, obviously. So we will wait a moment, and, hopefully we will be back.
Jan H. Pahl: Sorry, I am not sure. Maybe we have lost Ronald's connection here. I am pretty sure not Ronald himself, but the connection, obviously. We will wait a moment and hopefully we will be back. Okay. He will be back in a moment. In the meantime, don't hesitate to raise any new questions. We will collect this and will follow at this. Hey, welcome back.
Jan Pahl: Sorry, I am not sure. Maybe we have lost Ronald's connection here. I am pretty sure not Ronald himself, but the connection, obviously. We will wait a moment and hopefully we will be back. Okay. He will be back in a moment. In the meantime, don't hesitate to raise any new questions. We will collect this and will follow at this. Hey, welcome back.
Speaker #1: Okay, he will be back in in a moment. So in the meantime, don't hesitate to raise any new questions. We will collect these, and we'll follow up on this.
Speaker #1: Hey, welcome back.
Speaker #2: That's a fact, I would call it here. I have to switch off my phone so that it doesn't accidentally, in between, hear your opinion. I should use my phone to connect here.
Ronald Slabke: There is a bug, I would call it here, that I have to switch off my phone that not accidentally in between. Here is the opinion, I should use my phone to connect here.
Ronald Slabke: There is a bug, I would call it here, that I have to switch off my phone that not accidentally in between. Here is the opinion, I should use my phone to connect here.
Speaker #1: Oh, okay.
Jan H. Pahl: Okay.
Jan Pahl: Okay.
Speaker #2: This happens, yeah. This happened again. Okay.
Ronald Slabke: This happens.
Ronald Slabke: This happens.
Jan H. Pahl: So we.
Jan Pahl: So we.
Ronald Slabke: Yeah. This happens again. Okay.
Ronald Slabke: Yeah. This happens again. Okay.
Speaker #1: No worries. So we stopped at Corey Phi, so the last 18, 18 months, yeah.
Jan H. Pahl: No worries. We stopped at Corify. The last 18 months, yeah.
Jan Pahl: No worries. We stopped at Corify. The last 18 months, yeah.
Speaker #2: Yeah, yeah, that, that we, gained confidence and, signed contracts with, the mid-single digit number of, relevant, insurance age brokers in this industrial insurance space, and which are now, step-by-step migrating with their, with their portfolio and their client base, to Corey Phi.
Ronald Slabke: Yeah. We gained confidence and signed contracts with mid-single digit number of relevant insurance brokers in this industrial insurance space, and which are now step-by-step migrating with their portfolio and their client base to Corify. There was nothing extraordinary in Q2, just one or two more which migrated another part of their business. All in all, I would say we are still in some kind of a beta testing phase, but we gained confidence and our partners gained confidence that Corify is the solution for this market.
Ronald Slabke: Yeah. We gained confidence and signed contracts with mid-single digit number of relevant insurance brokers in this industrial insurance space, and which are now step-by-step migrating with their portfolio and their client base to Corify. There was nothing extraordinary in Q2, just one or two more which migrated another part of their business. All in all, I would say we are still in some kind of a beta testing phase, but we gained confidence and our partners gained confidence that Corify is the solution for this market.
Speaker #2: So there, there was nothing, extraordinary in the, in the second quarter, just, one or two more which migrated, another part of their, of their business.
Speaker #2: And, let's say, all in all, I would say we are still in some kind of a better testing phase, but we gained confidence, and our partners gained confidence, that Corey Phi is the solution for this market.
Speaker #1: Right, thanks. In the meantime, there's another question regarding the insurance platform, and therefore maybe we have to get a little bit more context about finding partners and so on, because the question is: Does this momentum, this positive momentum of insurance platforms, change our desire to find a partner for this business?
Jan H. Pahl: Right. Thanks. In the meantime, there is another question regarding the insurance platform, and therefore, maybe we have to give a little bit more context about finding partners and so on, because the question is: Does this momentum, this positive momentum of insurance platforms change our desire to find a partner for this business? Maybe you can give a little bit color on this finding a partner topic as well. Yeah.
Jan Pahl: Right. Thanks. In the meantime, there is another question regarding the insurance platform, and therefore, maybe we have to give a little bit more context about finding partners and so on, because the question is: Does this momentum, this positive momentum of insurance platforms change our desire to find a partner for this business? Maybe you can give a little bit color on this finding a partner topic as well. Yeah.
Speaker #1: Maybe you can give a little bit color on this, on this finding a partner, topic as well. Yeah.
Speaker #2: Yeah, let's say, in general, we changed our strategy. Now, four years ago, with the massive change in the interest environment and our profitability, we saw that, to break through in the insurance market, the necessary investments can't be done just out of Hypoport's cash flow.
Ronald Slabke: Yeah. In general, we changed our strategy now four years ago with the massive change in the interest environment and our profitability that we saw that to break through in the insurance market, the necessary investments cannot be done just out of Hypoport's cash flow. We optimized the business model, stripped down our expenses, and are now, I would say, on a healthy bay of growth. Just this growth will not lead us to a market dominance in a short period of a couple of years. This is not going to bring us where we are with Europace in the mortgage business. But we want to get there, and we are certain that insurance market needs platforms like us. So we are constantly in evaluations and talks with potential strategic partners to speed up this process and partner with market-leading entities here.
Ronald Slabke: Yeah. In general, we changed our strategy now four years ago with the massive change in the interest environment and our profitability that we saw that to break through in the insurance market, the necessary investments cannot be done just out of Hypoport's cash flow. We optimized the business model, stripped down our expenses, and are now, I would say, on a healthy bay of growth. Just this growth will not lead us to a market dominance in a short period of a couple of years. This is not going to bring us where we are with Europace in the mortgage business. But we want to get there, and we are certain that insurance market needs platforms like us. So we are constantly in evaluations and talks with potential strategic partners to speed up this process and partner with market-leading entities here.
Speaker #2: So, let's say we optimized the business model, stripped down our expenses, and, I'm now able to say on a healthy way of growth, just, this growth will not lead us to a market dominance in a, in a short period of a couple of years.
Speaker #2: This is—let's say, this is not going to bring us to where we are with Europace in the mortgage business. But we want to get there, and we are certain that the insurance market needs platforms like us. So, we are constantly in evaluations and talks with potential strategic partners to speed up this process and partner with the right—let's say, with market-leading entities here.
Speaker #2: so does the current performance, change something in this? No. even then, we see that our success, is, increasing our attractiveness for, strategic partners. we don't see that without them that we are able to, achieve, market standard role here, as we did in Europe, in, in the, in the mortgage business.
Ronald Slabke: Does the current performance change something? It is no. Even then, we see that our success is increasing our attractiveness for strategic partners. We do not see that without them, that we are able to achieve a market standard role here as we did in the mortgage business.
Ronald Slabke: Does the current performance change something? It is no. Even then, we see that our success is increasing our attractiveness for strategic partners. We do not see that without them, that we are able to achieve a market standard role here as we did in the mortgage business.
Speaker #1: Yeah, okay, thanks. I hope this clarified the question. If not, please come back. And as a reminder, just type your questions in the chat. Or, if this is not allowed for you due to technical reasons or your IT security organization, you can just write me an email, and I can forward this to Ronald or highlight it here as well.
Jan H. Pahl: Yep. Okay, thanks. I hope this clarified the question. If not, please come back. As a reminder, just type your questions in the chat, or if this, however, because of technical reasons is not allowed to you because of your IT security organization, you can just write me an email and I can forward this to Ronald or highlight this here as well. The next question is coming also from an investor from the US. The question is: How, if at all, has AI impacted your Europace business so far this year? Any updates on potential MCP offering or partnerships with large AI companies?
Jan Pahl: Yep. Okay, thanks. I hope this clarified the question. If not, please come back. As a reminder, just type your questions in the chat, or if this, however, because of technical reasons is not allowed to you because of your IT security organization, you can just write me an email and I can forward this to Ronald or highlight this here as well. The next question is coming also from an investor from the US. The question is: How, if at all, has AI impacted your Europace business so far this year? Any updates on potential MCP offering or partnerships with large AI companies?
Speaker #1: the next question is coming also from an investor from the US. so the question is, how, if at all, has AI impacted your Europace business so far this year?
Speaker #1: Are there any updates on a potential MCP offering, or partnerships with large AI companies?
Speaker #2: Okay, affected with, let's say, an intensive change in how we develop Europace, and with a lot of ideas, early implementations, and products in a better stage to enhance the Europace experience for users with AI-based features.
Ronald Slabke: Okay. Affected with, let us say, intensive change in how we develop Europace and with a lot of ideas, early implementations, products in a better stage to enhance the Europace experience for users with AI-based features. This is what happened. We are in contact regarding MCP service for the personal loan business, not for the mortgage business for now. There is nothing to announce regarding flow of business for now. We are technically prepared, and we are focusing on features where we see a short-term monetization option along our current customer base.
Ronald Slabke: Okay. Affected with, let us say, intensive change in how we develop Europace and with a lot of ideas, early implementations, products in a better stage to enhance the Europace experience for users with AI-based features. This is what happened. We are in contact regarding MCP service for the personal loan business, not for the mortgage business for now. There is nothing to announce regarding flow of business for now. We are technically prepared, and we are focusing on features where we see a short-term monetization option along our current customer base.
Speaker #2: So this is what happened. We are in contact regarding MCP service for the personal loan business, not for the mortgage business, for now.
Speaker #2: And so there's, let's say, nothing to announce, regarding, let's say, flow of business, for now. we are technically prepared, and we are focusing on, features where we see an, short-term monetization, option.
Speaker #2: along our current customer base.
Speaker #1: Okay, the next one is a little bit harder—cut to capital allocation. So, how would you describe your capital allocation priorities at the moment, between capital expansion, buyback, or M&A?
Jan H. Pahl: Okay. The next one is a little bit harder cut to capital allocation. How would you describe your capital allocation priorities at the moment between CapEx, buyback, or M&A? These three topics, CapEx, buyback or M&A, which one is rank 1, 2, 3?
Jan Pahl: Okay. The next one is a little bit harder cut to capital allocation. How would you describe your capital allocation priorities at the moment between CapEx, buyback, or M&A? These three topics, CapEx, buyback or M&A, which one is rank 1, 2, 3?
Speaker #1: So, these three topics—capital, expansion, buyback or M&A—which one is ranked one, two, three? Actually, I would say,
Ronald Slabke: Actually, I would say this, rank one is buyback. We do not see that we should invest more right now than we do already. So not more CapEx. Let us say steady level of CapEx and getting better in execution. We do not see that M&A is a feasible option right now because our current level of complexity is high enough. Not saying that it is a no-go area. If I would say the right team or the right product would come by, but it is not our focus at all. So I would say number one is buying back shares if possibility applicable.
Ronald Slabke: Actually, I would say this, rank one is buyback. We do not see that we should invest more right now than we do already. So not more CapEx. Let us say steady level of CapEx and getting better in execution. We do not see that M&A is a feasible option right now because our current level of complexity is high enough. Not saying that it is a no-go area. If I would say the right team or the right product would come by, but it is not our focus at all. So I would say number one is buying back shares if possibility applicable.
Speaker #2: There's rank one is buyback. We don't see that we should invest more right now than we do already, so not more CapEx. So, let's say, a steady level of CapEx and getting better in execution.
Speaker #2: and, we don't see that, M&A is, feasible option right now because the, let's say, our current level of complexity is high enough. So not saying that it's, it's a no-go area.
Speaker #2: If, I would say the right team or the right product, would come by, but it's not our focus at all. So, I would say, number one is, buying back shares, i-if possible and applicable.
Speaker #1: Yeah. Right. So that seems to also last one. As a reminder once again, please type your in your questions, or write me an email, so can I can highlight this here.
Jan H. Pahl: Yep. Right. That seems that was the last one. As a reminder, once again, please type in your questions or write me an email so I can highlight this here. This next one, which is also from an investor side following up on the question before: Is there a reason why we have not seen a buyback in Q2?
Jan Pahl: Yep. Right. That seems that was the last one. As a reminder, once again, please type in your questions or write me an email so I can highlight this here. This next one, which is also from an investor side following up on the question before: Is there a reason why we have not seen a buyback in Q2?
Speaker #1: This next one, which is also from an investor side, following up on the question before: Is there a reason why we haven't seen a buyback in Q2?
Ronald Slabke: As I said, it would be our preferred options if applicable. During Q2, we could not do any buyback because of ongoing non-disclosed projects.
Ronald Slabke: As I said, it would be our preferred options if applicable. During Q2, we could not do any buyback because of ongoing non-disclosed projects.
Speaker #2: yeah, not, as I as I said, it would be our preferred options, if, applicable. And, during Q2, we couldn't do any buyback. because of, ongoing, n-non-disclosed, let's say, projects.
Speaker #1: Right. So the next one is coming in, switching back to Europace. how is Europace one, in, initiative initiative, going with the original banks?
Jan H. Pahl: Right. The next one is coming in. Switching back to Europace. How is Europace One initiative going with the original banks?
Jan Pahl: Right. The next one is coming in. Switching back to Europace. How is Europace One initiative going with the original banks?
Speaker #2: Yeah, okay. let's say, Europace one.
Ronald Slabke: Yeah. Okay.
Ronald Slabke: Yeah. Okay.
Jan H. Pahl: Maybe. Question first. What is Europace One exactly?
Jan Pahl: Maybe. Question first. What is Europace One exactly?
Speaker #1: Question first, what is Europace one exactly?
Speaker #2: Yeah, yeah. So Europace One is our subscription model to get enhanced, typically AI-based features in Europace—a bundle of features along the value chain.
Ronald Slabke: Yeah. Europace One is our subscription model to get enhanced, typically AI-based features in Europace. A bundle of features along the value chain. We introduced this roughly a year ago to the broker segment of the market and are in the mid-hundreds of subscription here by now. To answer this question, even if it was not asked by now, I see some potential. I still see a lot of potential in speeding up this process of gaining here subscription. We are not fully happy with the progress we have here in the broker segment. At the end of Q2, we introduced this as well to our banking partners, so in their branch networks, with a slightly different pricing model. That is transaction-based, not subscription-based. We sell it there for a higher transaction fee. Yeah.
Ronald Slabke: Yeah. Europace One is our subscription model to get enhanced, typically AI-based features in Europace. A bundle of features along the value chain. We introduced this roughly a year ago to the broker segment of the market and are in the mid-hundreds of subscription here by now. To answer this question, even if it was not asked by now, I see some potential. I still see a lot of potential in speeding up this process of gaining here subscription. We are not fully happy with the progress we have here in the broker segment. At the end of Q2, we introduced this as well to our banking partners, so in their branch networks, with a slightly different pricing model. That is transaction-based, not subscription-based. We sell it there for a higher transaction fee. Yeah.
Speaker #2: And we introduced this roughly a year ago to the broker segment of the market, and are in the mid-hundreds of subscriptions here by now.
Speaker #2: And, but, to, to, to answer this question, even when it not was, asked by now, let's say, see some potential, see still, a lot of potential in, speeding up this process of, gaining here subscription.
Speaker #2: So we are not, fully happy with the, the, the progress we have here in the in the broker segment. So, at the end of, the second quarter, we introduced this as well, to the, to our banking partners.
Speaker #2: So, in the branch networks, this is a slightly different pricing model. So that's transaction-based, not subscription-based. And we, so it's, we sell it there for a higher transaction fee.
Speaker #2: And, let's say, the sales purchase process started roughly two months ago, and we got the first signatures by now. It is still too early to judge on the success with the regional banks here, specifically.
Ronald Slabke: The sales process started roughly two months ago, and we got the first signatures by now. It is still too early to judge on the success with the regional banks here specifically.
Ronald Slabke: The sales process started roughly two months ago, and we got the first signatures by now. It is still too early to judge on the success with the regional banks here specifically.
Speaker #1: Yeah, great, thanks. I hope this answers the questions. However, if not, please follow up. The next one is: could you comment on the individual loss-making business units for the remainder of the year?
Jan H. Pahl: Yep. Great. Thanks. Hope this answers the questions. However, if not, please follow up. The next one is, could you comment on the individual loss-making business units for the remainder of the year?
Jan Pahl: Yep. Great. Thanks. Hope this answers the questions. However, if not, please follow up. The next one is, could you comment on the individual loss-making business units for the remainder of the year?
Speaker #2: Yes, let's start. This value actually, in real estate and mortgage business, we expect a positive contribution on EBIT level for the second half of this year.
Ronald Slabke: Well, let's start with Value AG in real estate and mortgage business. We expect positive contribution on EBIT level for the H2 of this year. So effective at break even for Value AG. With a successful H1 of the year, we are confident that we will reach this. Next is Dr. Klein Wowi Digital. This is WOWIPORT as an ERP solution for the housing associations. Here we are still in an investment phase and will have as well still a significant loss in the H2 of this year. Let's say roughly EUR 1 million per half of a year is our runway there right now. We expect there break even in 2027. The last is Corify.
Ronald Slabke: Well, let's start with Value AG in real estate and mortgage business. We expect positive contribution on EBIT level for the H2 of this year. So effective at break even for Value AG. With a successful H1 of the year, we are confident that we will reach this. Next is Dr. Klein Wowi Digital. This is WOWIPORT as an ERP solution for the housing associations. Here we are still in an investment phase and will have as well still a significant loss in the H2 of this year. Let's say roughly EUR 1 million per half of a year is our runway there right now. We expect there break even in 2027. The last is Corify.
Speaker #2: So, effectively a break-even for Value Aging. And, with a successful first half of the year, we are confident that we will reach this. Next is Dr. Klein, Vovi Digital, this Vovi port as an ERP solution for the housing associations.
Speaker #2: here we are still, in an investment phase, and, will have as well still a significant, loss in the second half of this year. let's say, roughly a million euro per half of a year is, our runway there right now.
Speaker #2: And we expect their break-even in 2027. And the last is Coreify, as well, with the declining loss level, but, let's say, getting closer to neutral in the second half of this year. There's still a slightly lower confidence level because of the, let's say, the stage of this business model.
Ronald Slabke: As well with a declining loss level, but let's say getting closer to neutral in the H2 of this year, still with a slightly lower confidence level because of the stage of this business model. We are there as well on a low level of investment. I think you are aware of this. It is an early-stage product and a pretty long sales cycle. But let's say, we see that we get closer to the point that we are as well willing to increase our investments again when the client base improved.
Ronald Slabke: As well with a declining loss level, but let's say getting closer to neutral in the H2 of this year, still with a slightly lower confidence level because of the stage of this business model. We are there as well on a low level of investment. I think you are aware of this. It is an early-stage product and a pretty long sales cycle. But let's say, we see that we get closer to the point that we are as well willing to increase our investments again when the client base improved.
Speaker #2: we are there as well on a low level of investment. I think you're aware of this. It's, let's say, early stage product, and, a pretty long sales cycle, and, but we let's say, we see that we get cl we get closer to, to the point that, let's say, we are as well willing to, increase our investments again when, the client base improved.
Speaker #1: Very clear. Thanks. There are two questions regarding mortgages, so I will group this a little bit here. The first one is specific on Deutsche Bank.
Jan H. Pahl: Very clear. Thanks. There are two questions regarding mortgages. I will group this a little bit here. The first one is specific on Deutsche Bank. You have described in further course that the decision of Deutsche Bank to give up market share was temporary, but it seems now that it is a little bit more permanent development, or a little bit stickier. What are the implications for Europace and Starpool, and is it right that ING seems to be benefiting out of this?
Jan Pahl: Very clear. Thanks. There are two questions regarding mortgages. I will group this a little bit here. The first one is specific on Deutsche Bank. You have described in further course that the decision of Deutsche Bank to give up market share was temporary, but it seems now that it is a little bit more permanent development, or a little bit stickier. What are the implications for Europace and Starpool, and is it right that ING seems to be benefiting out of this?
Speaker #1: You have described earlier in the call that the decision of Deutsche Bank to give up market share was temporary. But it seems now that it's becoming a more permanent development.
Speaker #1: ...or a little bit stickier. What are the implications for Europace and Star Pool? And is it right that ING seems to be benefiting out of this?
Speaker #2: So, let's say, I expect this decision—to, let's say, reduce the new mortgage volume to the current level—is a tactical decision, and is something that is constantly reconsidered as well within Deutsche Bank.
Ronald Slabke: I expect this decision to reduce the new mortgage volume to the current level is a tactical decision. It is something that is constantly reconsidered as well within Deutsche Bank. It is linked to capital allocation within Deutsche Bank and the question of the attractiveness of the German mortgage business relative to other operations the bank has. I am certain that we see that Deutsche Bank will return when this, let us call it balance shifts in the favor of German mortgage business again. I am certain that this is something that we will all see still. It is nothing that will take decades for Deutsche Bank. I got to know Deutsche Bank as a very agile organization when it comes to this kind of capital allocation decisions. Who profited from the withdrawal?
Ronald Slabke: I expect this decision to reduce the new mortgage volume to the current level is a tactical decision. It is something that is constantly reconsidered as well within Deutsche Bank. It is linked to capital allocation within Deutsche Bank and the question of the attractiveness of the German mortgage business relative to other operations the bank has. I am certain that we see that Deutsche Bank will return when this, let us call it balance shifts in the favor of German mortgage business again. I am certain that this is something that we will all see still. It is nothing that will take decades for Deutsche Bank. I got to know Deutsche Bank as a very agile organization when it comes to this kind of capital allocation decisions. Who profited from the withdrawal?
Speaker #2: And it's linked to capital allocation within Deutsche Bank and the question of the attractiveness of the German mortgage business relative to other operations the bank has.
Speaker #2: So, and I'm certain that we see that this—the Deutsche Bank—will return when this, let's call it 'balance', shifts in the favor of the German mortgage business again.
Speaker #2: And I'm certain that this is something that we will all still see. So it's not something that will take decades for Deutsche Bank.
Speaker #2: I got to know Deutsche Bank as a very agile organization when it comes to this kind of capital allocation decisions. Who profited from the withdrawal?
Speaker #2: I would say Deutsche Bank was serving especially complex mortgage products and had a strong position there. And I would say that, let's say, most parts of the gains went to regional banks, not to ING.
Ronald Slabke: I would say Deutsche Bank was serving especially complex mortgage products, and had a strong position there. I would say most parts of the gains went to regional banks, not to ING. While ING was pretty successful in the last 18 months in the competition, but with a very standardized product. There took market share from others, especially as well from regional banks because of their lack of digitalization of their mortgage operation, where ING was simply stronger. Now we lost Jan, maybe because of the same issue. While when you just look on the numbers, you could say that ING improved or increased their market share and Deutsche Bank lost market share. The real flow was Deutsche Bank lost to regional banks, and regional banks lost to ING in two slightly different areas of the market.
Ronald Slabke: I would say Deutsche Bank was serving especially complex mortgage products, and had a strong position there. I would say most parts of the gains went to regional banks, not to ING. While ING was pretty successful in the last 18 months in the competition, but with a very standardized product. There took market share from others, especially as well from regional banks because of their lack of digitalization of their mortgage operation, where ING was simply stronger. Now we lost Jan, maybe because of the same issue. While when you just look on the numbers, you could say that ING improved or increased their market share and Deutsche Bank lost market share. The real flow was Deutsche Bank lost to regional banks, and regional banks lost to ING in two slightly different areas of the market.
Speaker #2: While ING was pretty successful in the last 18 months in the competition, it was with a very standardized product. They took market share from others, especially from regional banks, because of their lack of digitalization of their mortgage operation.
Speaker #2: Where ING was simply stronger. Oh, now we lost Jan—maybe because of the same issue. So, while, when you just look at the numbers, you could say that ING improved or increased their market share, and Deutsche Bank lost market share.
Speaker #2: The real flow was: Deutsche Bank lost to regional banks, and regional banks lost to ING, out of two different—let's say, in two slightly different areas of the market.
Speaker #1: Thanks, and sorry for this. Yes, it was some issue with the camera. So, the next one is still with mortgages, but let's stay with the private banks.
Jan H. Pahl: Thanks, and sorry for this. Yes, it was some issue with the camera.
Jan Pahl: Thanks, and sorry for this. Yes, it was some issue with the camera.
Jan H. Pahl: The next one is still with mortgages. Let us stay with the private banks. Any process of acquiring any new customers in this segment? To the private bank segment?
Jan Pahl: The next one is still with mortgages. Let us stay with the private banks. Any process of acquiring any new customers in this segment? To the private bank segment?
Speaker #1: So, any process of acquiring any new customers in this, in this segment? So, the private bank segment?
Speaker #2: Yeah. So, unfortunately, the private bank segment in Germany is small. Yeah. This we saw in the first half of the year, and a newly announced market entrance.
Ronald Slabke: Yeah. Unfortunately the private bank segment in Germany is small. We saw in the H1 of the year a new announced market entrance. This is Targobank. Backed by a French banking group, as you know. Targobank decided to use Europace for their operation here. We wish Targobank all the best and hope that they achieve their goals in the market in the upcoming years. Our technology was the right choice for this. Beside this, nothing we are able to disclose for now. We would be happy to see more European banks entering German market because it is attractive, as ING shows that when you have a very digital approach, a good funding, then you can easily build a strong position in the German mortgage market. There is a lot of space left here.
Ronald Slabke: Yeah. Unfortunately the private bank segment in Germany is small. We saw in the H1 of the year a new announced market entrance. This is Targobank. Backed by a French banking group, as you know. Targobank decided to use Europace for their operation here. We wish Targobank all the best and hope that they achieve their goals in the market in the upcoming years. Our technology was the right choice for this. Beside this, nothing we are able to disclose for now. We would be happy to see more European banks entering German market because it is attractive, as ING shows that when you have a very digital approach, a good funding, then you can easily build a strong position in the German mortgage market. There is a lot of space left here.
Speaker #2: This is Targobank, backed by French banking group, as you know. And Targo decided to use Europace for their operation here. We wish Targo all the best, and hope that they achieve their goals in the market in the upcoming years.
Speaker #2: our technology is, was the right choice. for this. So besides this, nothing we are able to disclose for now. we would be happy to see more, European banks entering, German market because, it's attractive, as ING shows, that, when you have an, very digital approach, a good funding, then you are, you have a sto have you can, easily build a strong position in the German mortgage market.
Speaker #2: There's a lot of space left here.
Speaker #1: Okay. Very clear. Thanks. And, there is a thank you from the UK investors regarding your answer to the Deutsche Bank, just, to be to direct this to direct this to you as well.
Jan H. Pahl: Okay. Very clear. Thanks. A thank you from the UK investors regarding your answer to the Deutsche Bank, just to direct this to you as well. The next question is on mortgage market a little bit more overall. Are we expecting still a wave of higher refinancing activities in 2027, 2028?
Jan Pahl: Okay. Very clear. Thanks. A thank you from the UK investors regarding your answer to the Deutsche Bank, just to direct this to you as well. The next question is on mortgage market a little bit more overall. Are we expecting still a wave of higher refinancing activities in 2027, 2028?
Speaker #1: So the next question is on the mortgage market, a little bit more overall. Are we still expecting a wave of higher refinancing activities in '27, '28?
Ronald Slabke: Yes. Yes, we do. We expect to see a vital refinancing market starting in 2027, because the current level of refinancing is unsustainable when you look on the portfolio volume of German mortgages outstanding.
Ronald Slabke: Yes. Yes, we do. We expect to see a vital refinancing market starting in 2027, because the current level of refinancing is unsustainable when you look on the portfolio volume of German mortgages outstanding.
Speaker #2: Yes, yes, we do. So we expect to see vital refinancing market starting in 2027, because the current level of refinancing is, let's say, unsustainable—unsustainable when you look at the portfolio volume of German mortgages outstanding.
Speaker #2: They need to be refinanced. There is no other way.
Ronald Slabke: They need to be refinanced. There is no other way.
Ronald Slabke: They need to be refinanced. There is no other way.
Speaker #1: Exactly. Right. Okay. I don't see any questions regarding mortgages or Europace, so let's jump to our next topic, which is a little bit more high level.
Jan H. Pahl: Exactly. Right. Okay. I do not see any questions regarding mortgages or Europace. Let us jump to the next topic, which is a little bit more high level, I assume, because the question is pretty short. Why is EBIT growth Q4 weighted? This is a question that
Jan Pahl: Exactly. Right. Okay. I do not see any questions regarding mortgages or Europace. Let us jump to the next topic, which is a little bit more high level, I assume, because the question is pretty short. Why is EBIT growth Q4 weighted? This is a question that
Speaker #1: I assume because the question is pretty short. Why is EBIT growth Q4-weighted? So this is, this is a question that,
Speaker #2: Yeah. I'd is.
Ronald Slabke: Yeah.
Ronald Slabke: Yeah.
Jan H. Pahl: Yeah, I am also not sure. This is just what I can read here. My interpretation is why we are expecting a strong Q4.
Jan Pahl: Yeah, I am also not sure. This is just what I can read here. My interpretation is why we are expecting a strong Q4.
Speaker #1: Yeah. I'm, I'm, I'm also not, not sure. This is, this is just what I can, I can read here. My, my, my interpretation is, why we are expecting a strong Q4.
Ronald Slabke: Ah, yeah. Okay. Because this
Ronald Slabke: Ah, yeah. Okay. Because this
Speaker #2: yeah. Okay.
Speaker #1: So, if not, if we are right, please correct us. But maybe this is a good start.
Jan H. Pahl: If we are right, please correct us. Maybe this is a good start.
Jan Pahl: If we are right, please correct us. Maybe this is a good start.
Ronald Slabke: We saw this in the last years that Q4 always delivered a certain level of outperformance. In some business model, it is pretty obvious. Everything what is linked to subsidized loans and other tax credits and similar things regarding the Mittelstand business of REM Capital, the financing platform, it is heavily linked to year-end closing of the subsidizing entity, and as well from this planning process and project planning process of German Mittelstand, a major part of this business is done in the fourth quarter. We saw as well some cyclical moves in housing associations. Often in the last quarter as well in the mortgage market business, we see some certain developments of shifts in volume. This impacts as well the.
Ronald Slabke: We saw this in the last years that Q4 always delivered a certain level of outperformance. In some business model, it is pretty obvious. Everything what is linked to subsidized loans and other tax credits and similar things regarding the Mittelstand business of REM Capital, the financing platform, it is heavily linked to year-end closing of the subsidizing entity, and as well from this planning process and project planning process of German Mittelstand, a major part of this business is done in the fourth quarter. We saw as well some cyclical moves in housing associations. Often in the last quarter as well in the mortgage market business, we see some certain developments of shifts in volume. This impacts as well the.
Speaker #2: No, let's say it's—we saw this in the last years—that Q4 always delivered a certain level of outperformance. In some business models, it's pretty obvious.
Speaker #2: so everything what is linked to subsidized loans and, other tax, tax credits and similar things, regarding the middle stands, business of, REM Capital. So the financing platform, this is, it's heavily linked to, year-end closing of, the, subsidizing entity.
Speaker #2: and as well, from this, planning process and, let's say, pro-project, planning process of German middle stand, in, a major part of this business is done in the, in the fourth quarter.
Speaker #2: we saw as, as well some cy-cyclical, moves, in, housing associations. And, let's say, often in the last quarter, as well in the, in the overall German, mortgage market, business, we see some, let's say, certain, developments of, shifts in volume with, with, impacts as well, the, let's say, this, the, the certainty of, com let's say, high commit, commission events, which influence in the, the last quarter profitability or a-allocated there because then, then it gets certain that, certain trigger events for this certain, commissions are reached.
Ronald Slabke: The certainty of high commission events, which influence the last quarter profitability are allocated there, because then it gets certain that certain trigger events for these certain commissions are reached in the end.
Ronald Slabke: The certainty of high commission events, which influence the last quarter profitability are allocated there, because then it gets certain that certain trigger events for these certain commissions are reached in the end.
Speaker #2: In the end.
Speaker #1: Mm-hmm. Okay. Thanks. Hope we got this question right. If not, however, please come back to us. The next one is regarding mortgages and interest rates.
Jan H. Pahl: Okay, thanks. Hope we got this question right. If not, however, please come back to us. The next one is regarding mortgages and interest rates. It is: given the level of interest rates, do you foresee banks offering concessions for refinancing?
Jan Pahl: Okay, thanks. Hope we got this question right. If not, however, please come back to us. The next one is regarding mortgages and interest rates. It is: given the level of interest rates, do you foresee banks offering concessions for refinancing?
Speaker #1: So, given the level of interest rates, do you foresee banks offering concessions for refinancing?
Speaker #2: Yeah, let's say it's very difficult—concession for refinancing. Let's say, normally, banks try to refinance their mortgages, which are already on the balance sheet, with a higher margin.
Ronald Slabke: Well, it is a difficult concession.
Ronald Slabke: Well, it is a difficult concession.
Jan H. Pahl: Yeah
Jan Pahl: Yeah
Ronald Slabke: for refinancing. Let's say, normally, banks try to refinance the mortgages which are already on their balance sheet with a higher margin. Typically, it is because of the stickiness of this product, banks try to earn higher margins out of refinancing. The job of, especially mortgage brokers or other banks using Europace, is to convince the client that shifting to another bank saves so much money that it is worth the work and the hassle to do this. In this context, the word concession does not fit, really. I could just guess, if it is about when we see higher mortgage rates than the original loan-to-be-refinanced had, if banks could be willing to lower the mortgage rate to reduce the burden on the consumer level. I do not see this actually as a relevant issue in Germany.
Ronald Slabke: for refinancing. Let's say, normally, banks try to refinance the mortgages which are already on their balance sheet with a higher margin. Typically, it is because of the stickiness of this product, banks try to earn higher margins out of refinancing. The job of, especially mortgage brokers or other banks using Europace, is to convince the client that shifting to another bank saves so much money that it is worth the work and the hassle to do this. In this context, the word concession does not fit, really. I could just guess, if it is about when we see higher mortgage rates than the original loan-to-be-refinanced had, if banks could be willing to lower the mortgage rate to reduce the burden on the consumer level. I do not see this actually as a relevant issue in Germany.
Speaker #2: So, so typically, it's, because of the stickiness, of, of this product, banks try to earn higher margins, out of a refinancing. And, the job of, especially mortgage brokers or other banks using Europace is, to convince the client that, the shifting to another bank, saves so much money that it's worth the work.
Speaker #2: and the hassle to do this. so it so in this context, the word concession doesn't fit really. So, I could just guess, if it's about, when we see higher mortgage rates, then, the original, the, the, the loan to be refinanced had, if banks could be willing to lower the mortgage rate, to, reduce the, burden on the, consumer level, I don't see this actually as a relevant issue in, in, in Germany.
Speaker #2: the, the, the, let's say, the rates, and the included refin ref repayment part, for mortgages in, which were underwritten in the low interest rate environment of, 2000, 16 until 2022, secured that, even with higher mortgage rate and this what we see right now, something around 4%, it's no there's no issue for the borrower to, to handle this increase in, in interest rate.
Ronald Slabke: Let's say the rates and the included repayment part for mortgages which were underwritten in the low interest rate environment of 2016 until 2022, secured that even this higher mortgage rate, and this is what we see right now, something around 4%, there is no issue for the borrower to handle this increase in interest rate. So I do not see any default risk for banks or any need for concessions regarding the mortgage rate for banks here in Germany in 2027 and onward.
Ronald Slabke: Let's say the rates and the included repayment part for mortgages which were underwritten in the low interest rate environment of 2016 until 2022, secured that even this higher mortgage rate, and this is what we see right now, something around 4%, there is no issue for the borrower to handle this increase in interest rate. So I do not see any default risk for banks or any need for concessions regarding the mortgage rate for banks here in Germany in 2027 and onward.
Speaker #2: So there, I don't see any need for concessions regarding the mortgage rate for banks here in Germany, in 2027 and onward.
Speaker #1: Okay, thanks. I hope we got this question right. If not, please come back. The next one is a little bit more specific to financing platforms and Q2.
Jan H. Pahl: Okay, thanks. Hope we got this question right. If not, please come back. The next one is a little bit more specific to financing platforms and Q2, so not H1, but in Q2 in special. What was the reason of the 12% jump in operating expenses in financial platform in Q2?
Jan Pahl: Okay, thanks. Hope we got this question right. If not, please come back. The next one is a little bit more specific to financing platforms and Q2, so not H1, but in Q2 in special. What was the reason of the 12% jump in operating expenses in financial platform in Q2?
Speaker #1: So North, North H1, but in Q2 in special, what was the reason of the 12% jump in operating expenses, in financing platform in Q2?
Speaker #2: Yeah. We, we had this question already in a German call. So, let's say, it's a short period. Let's say we had a user conference of Vobiport, which was the largest ever and the most expensive one ever.
Ronald Slabke: Yeah. We had this question already in the German call. This is, let's say, it is a short period. We had a user conference of Hypoport, which was the largest ever and the most expensive one ever, and we do this once a year. This triggers a couple of hundred thousand EUR extra cost, one time up to the next user conference, and some other, let's say, small extraordinary payments. So, nothing recurring. It is not a trend to increase costs in this segment significant. It is linked to a very short period, and in the end, a smaller segment as well you are looking at.
Ronald Slabke: Yeah. We had this question already in the German call. This is, let's say, it is a short period. We had a user conference of Hypoport, which was the largest ever and the most expensive one ever, and we do this once a year. This triggers a couple of hundred thousand EUR extra cost, one time up to the next user conference, and some other, let's say, small extraordinary payments. So, nothing recurring. It is not a trend to increase costs in this segment significant. It is linked to a very short period, and in the end, a smaller segment as well you are looking at.
Speaker #2: And we do this once a year. and so this is this triggers a, a couple of hundred thousand euro extra cost, one time in up to the next user conference.
Speaker #2: And some other, let's say, small extraordinary payments. So, nothing recurring. It's not a trend to increase costs in this segment significantly.
Speaker #2: This is, it's a—let's say, it's linked to a very short period. And in the end, our smaller segment is where you are looking at.
Speaker #1: Yeah. Thanks for this.
Jan H. Pahl: Yeah. Thanks for this.
Jan Pahl: Yeah. Thanks for this.
Ronald Slabke: I would call it normal volatility on the cost side. In general, we are very strict in our cost management.
Ronald Slabke: I would call it normal volatility on the cost side. In general, we are very strict in our cost management.
Speaker #2: Normally, I would call it normal volatility on the cost side. In general, we are very strict in our cost management.
Speaker #1: Correct. I think then, at the moment, I don't see any additional questions—also not in my emails. Once again, as a reminder, please type your questions in.
Jan H. Pahl: Correct. I think then.
Jan Pahl: Correct. I think then.
Ronald Slabke: At the moment, I don't see any additional questions, also not in my emails. Once again, as a reminder, please type your questions into the chat, or you can highlight this or share this via email with me. Just browsing if I missed a question. It don't seem so. Let's say you are willing to answer questions as well outside of the.
Jan Pahl: At the moment, I don't see any additional questions, also not in my emails. Once again, as a reminder, please type your questions into the chat, or you can highlight this or share this via email with me. Just browsing if I missed a question. It don't seem so.
Speaker #1: You can share this in the chat, highlight it, or send it to me via email. I was just browsing. If I missed a question, it doesn't seem so.
Speaker #2: Let's say you are willing to answer questions that are outside of the—
Ronald Slabke: Let's say you are willing to answer questions as well outside of the.
Speaker #1: I'm pretty sure, yeah. The investor relations sometimes do, or the date. So, it seems that we're there—no additional questions. So, we wish all the best to you, and have a great rest of the summer.
Jan H. Pahl: I am pretty sure, yeah. The investor relations sometimes do. Or the dates. It seems that there are no additional questions. We wish all the best to you and have a great summer, the rest of the summer. Thanks for this call. We hopefully see you in conferences in autumn and on the next days. Thanks for this Q&A, Ronald.
Jan Pahl: I am pretty sure, yeah. The investor relations sometimes do.
Ronald Slabke: Or the dates.
Jan Pahl: It seems that there are no additional questions. We wish all the best to you and have a great summer, the rest of the summer. Thanks for this call. We hopefully see you in conferences in autumn and on the next days. Thanks for this Q&A, Ronald.
Speaker #1: And, thanks for this call. We hopefully see in conferences in autumn and on the next days, so. Thanks for this Q&A, Ronald.
Speaker #2: Yeah.
Ronald Slabke: Yeah.
Ronald Slabke: Yeah.
Speaker #1: And, thanks, everyone, for joining. So, have a good rest of the day.
Jan H. Pahl: Thanks everyone for joining. Have a good rest of the day.
Jan Pahl: Thanks everyone for joining. Have a good rest of the day.
Speaker #2: Yes. See you in three months. Yeah.
Ronald Slabke: Yes. See you in three months here.
Ronald Slabke: Yes. See you in three months here.
Speaker #1: Yep.
Jan H. Pahl: Yep.
Jan Pahl: Yep.
Speaker #2: Bye-bye.
Ronald Slabke: Bye-bye.
Ronald Slabke: Bye-bye.
Jan H. Pahl: Bye.
Jan Pahl: Bye.
