Hypoport Ag

gentlemen my name is john paul and welcome to the hyperport se q a results um q1 to q3 in 2025 i'm here together with this lovely gentleman ron slapgower ceo here And together we would like to organize this Q&A session. So you have right now the opportunity to raise your question via at least three different ways. You can put this directly into a chat function or you can raise your hand. This is via these three dotted spots on the right side and then click the blue raise your hand button. So I can give you and hand over the mic to you. But however, at least once again, if you want just to write it down, you can write with just bullet points in the Q&A session and the Q&A chat. And we are very happy to wait until the first question on our queue. Three results for the queue. and in the meantime we have decided to start with the question which i got just a few minutes ago via email so maybe this is a good even it's a little bit complicated one it's a good idea to Start with, it is regarding our JV. So at least the question to Mr. Slapke is, could you please explain if Europace has maybe lost market share because of Deutsche Bank issues? So the German mortgage market volume seems to increase more than the Europace volume this year. If Deutsche Bank is priced and sent out of the market, why the German mortgage market volume continues to increase? who is taking over these Deutsche Bank market shares at least. I'm sorry, I forgot to start the record. Should I summarize it again? Okay, sorry for that. Now we are live, or now record has started, we are already live. So, once again, our first question here in our Q&A result is if maybe Europace has lost market share because of Deutsche Bank, because it looks like the German mortgage market is increasing a little bit faster than the Europace volume, and this is because Deutsche Bank is pricing them out of the markets, out of the Europace market. Who is taking over these shares from Deutsche Bank?

Okay, a good question. Let's start with this that in general, we see a healthy market environment right now. So the recovery of the German mortgage market from the crisis in 2022, second half of the year, and 2023 is over and the market is, let's say, coming back. So the speed of this recovery looks slightly different in different areas of the market when you think about what the mortgage is used for, regional differences between metropolises and rural areas, but as well the different market participants perform slightly different in this market. So what we see from the reporting and as well from our numbers and activities, regional banks are pretty successful right now. especially in a year-on-year comparison because they had a weak start in 2024 still. And so they come from a lower base level when you look on the nine-month numbers. So cooperative banks and savings banks are taking market share right now. In a certain level, it may be even in a small level, it may be linked to the rollout of your case and both of their groups and the rollout of a lot of features that we provided to them which improves their competitiveness, their efficiency in the market and as well the conversion rates of their advisors there. So they are performing well. And as you saw already in our results, we are performing well with them as well. So the next group where there are no clear statistics, but where we see that on a, let's say, daily basis that they operate well in the current market environment are mortgage brokers. A group which heavily is using Europace is depending on Europace. And there's only one large German mortgage broker outside of Europace, Interhub Group, as another market participant in this area. For consumers, the interest rate is very important again right now because it has risen from a much lower level in the last 10 years. And on a higher interest rate level, comparing interest rates is something very German and very efficient and creates a huge benefit for the consumer who is comparing. And brokers, thanks to Europace, or in case of to their own system are comparing hundreds of banks and offers them and enabling consumers a great deal at the end. And compared to bank branches, they are usually independent structures. So freelancers working for their own profit, their own benefit. They are much more agile and aggressive and using Europace better in interacting with the clients than the typical bank branch in Germany right now, which is not using Europace. So this free takes market share. And they are all supporting that your pace is growing. And in none of these three sectors we lost a single relevant participant of the market. We just gained structures all the time. So what is certain, and this is the analysis of the one who made the questions right, the private banking sector lost market share in this environment in the last, you can say, two years. And this is, Deutsche Bank plays a role there. They have a strategic goal to reduce their mortgage exposure and reduce their new mortgage volume because of their return on investment requirements. So equity is expensive for Deutsche Bank. She wants to optimize, it wants to optimize its debt term and equity and this leads to a lower new mortgage volume. and the decline in as well, balance sheet for them in this business. So, yeah, all Deutsche Bank business goes for your case. So we see their lower numbers as well, less contribution to our overall numbers. And if you want to just look on the volume, you can say the loss thanks to Deutsche Bank, certain volume in the market. We don't treat this as a market share loss. We know that Deutsche Bank will come back and that the volume in the other markets is as well something that we are, is super successful in getting forward in all other banking groups. So, longer answer to this simple question.

Fair enough, great. Of course, I think it's important, so I appreciate the detail. I received a couple of questions. Let's for a moment stay with real estate and mortgage platforms segment. There's a special, but maybe it fits, because you mentioned the saving banks, Sparkassen. So the question is, could you please tell us a little bit more about project RUUDI, which is with the Sparkassen banks, and how is that impacting FinnMiles market share with internal loan applications? Should we think about Finansinformatik core banking software as a competitor to FinnMiles? Was it a partner? And maybe you can explain a little bit Rudy because an acronym and maybe not everyone is aware. So as a kickoff, maybe to start there.