creditshelf on growth track in the first half of 2020

• Strong Q2 led to significant revenue growth of 41.6% in H1 2020 compared to prior-year period
• Additional investor funds from creditshelf Loan Fund provided a growth boost and strengthened diversification of the institutional investor base
• Strategy of expanding partner network and financing high-growth companies contributed significantly to growth
• EBIT of kEUR ‒3,015.4 in H1 impacted by personnel expenses and significant strengthening of performance marketing infrastructure (prior-year period: kEUR ‒2,782.7)
• Management Board confirms forecast for the full year, assuming further economic recovery and prudent cost management while continuing its strategic investment plan

Frankfurt am Main, Germany, September 10, 2020 ‒ creditshelf Aktiengesellschaft, the leading credit platform for digital SME finance in Germany, published its results for the first half of 2020 today. The company has grown substantially compared to the first half of 2019 despite the challenges of the corona crisis. This was mainly driven by a very strong second quarter, which saw 80% growth in arranged loan volume to EUR 34.0 million compared to Q2 2019. Accordingly, compared to H1 2019 revenues increased by 41.6% to kEUR 2,501.3. Assuming a sustained economic recovery and corresponding financing needs of German small and medium-sized enterprises (SMEs), creditshelf considers itself well positioned to continue its growth in H2 2020.

Dr. Tim Thabe, CEO of creditshelf, emphasizes the opportunities for digital SME finance: "We are convinced that the Corona crisis will lead to a significant push in digitization - also in the loan business. Furthermore, we assume that the demand for loans from German SMEs will increase significantly in the event of a rapid economic recovery, and that this will create attractive opportunities for us. SMEs will need rapidly available, flexible financing solutions. With our advanced risk analysis software and an institutionally anchored investor base, we are well prepared to take advantage of these opportunities. In the summer months, we have further automated our processes to be even more efficient."

Details of the business development in the first half of 2020:

Driven by a significant growth boost in Q2 with the successfully launched creditshelf Loan Fund and the resulting diversification of the investor base, the arranged loan volume in H1 2020 increased to kEUR 45,635 (prior-year period: kEUR 35,800). As a result of this growth and improved margins, revenues from borrower and investor fees increased to EUR 1,695.3 thousand (H1 2019: kEUR 1,152.8) and kEUR 770.1 (H1 2019: kEUR 613.4), respectively. Overall, creditshelf achieved consolidated group revenues of kEUR 2,501.3, 41.6% above H1 2019 (kEUR 1,766.2). Earnings before interest and taxes (EBIT) for H1 2020 amounted to kEUR ‒3,015.4 thousand (H1 2019: kEUR ‒2,782.7) against the backdrop of higher personnel expenses and selective measures to strengthen the marketing infrastructure in order to take advantage of upcoming financing opportunities arising from the economic recovery in the German SME sector. A key driver of expenses was the planned increase in the number of employees, which further strengthened various areas of expertise within the company and significantly reduced dependence on external service providers. At the end of H1 2020, creditshelf had 57 permanent employees (June 30, 2019: 41). Accordingly, personnel expenses increased to kEUR 3,017.8 (prior-year period: kEUR 2,129.0). Marketing expenses of kEUR 899.7 in H1 2020 were lower than in the corresponding prior-year period (kEUR 1,066.5) despite a profound enhancement of the performance marketing infrastructure. These developments reflect prudent cost management while continuing the company's strategic investment plan. They provide the basis to seize opportunities arising from a continued economic recovery.

Expenses for sales commissions in connection with loan origination via partners amounted to kEUR 180.0 (prior-year period: kEUR 30.1) and can be attributed to the significant contribution of the creditshelf partner network, including Commerzbank. High risk standards adapted to the situation are reflected in a waiver of receivables of only kEUR 5.8 (prior-year period: kEUR 40.5), which had remained constant since Q1 and reduced significantly compared to H1 2020. creditshelf counteracts default risks by a more cautious product design with mainly monthly installments, a foresighted sector selection and a risk analysis based on a constantly growing, actual financial database.

"We were able to further diversify our investor portfolio by successfully launching the creditshelf Loan Fund. The fund's resources, which can be expanded to up to EUR 150 million following the already completed first closing, further strengthen the institutional investor base on our platform through the involvement of the European Investment Fund and secure refinancing in the medium term. In combination with a stable portfolio performance in times of crisis, these factors create attractive conditions for institutional investors," explains Dr. Daniel Bartsch, Chief Operating Officer of creditshelf.

Based on the prudent cost management initiated in the course of Q2 2020 and the significant increase in the volume of arranged loans compared to the same period of the previous year and Q1 2020, as well as the assumption that the arranged loan volume in the second half of the year, as in previous years, will be higher than in the first six months, the Management Board reaffirms its forecast for fiscal year 2020 published on March 23, 2020.

The full report for the first half of 2020 can be downloaded as from today from the company's investor relations website at ir.creditshelf.com.
 

Corporate Communications:
creditshelf Aktiengesellschaft
Jan Stechele (CPO)
Birgit Hass (Leiterin Marketing & Kommunikation)
Mainzer Landstraße 33a
60329 Frankfurt
Tel.: +49 (69) 348 77 2413
presse@creditshelf.com
www.creditshelf.com

Investor Relations:
creditshelf Aktiengesellschaft
Fabian Brügmann (CFO)
Maximilian Franz (Investor Relations Manager)
Mainzer Landstraße 33a
60329 Frankfurt
Tel.: +49 69 348 719 113
ir@creditshelf.com
www.creditshelf.com

About creditshelf:

www.creditshelf.com

creditshelf is the leading credit platform for digital SME finance in Germany. Founded in 2014 and headquartered in Frankfurt am Main, the company arranges bank-independent, flexible financing solutions via a constantly growing network. creditshelf combines complementary needs: While SME entrepreneurs can easily access attractive financing alternatives, institutional investors can invest directly in German SMEs and partners can support their clients as innovative providers of new credit solutions. The core of creditshelf's business model are a unique, data-driven risk analysis and unbureaucratic, fast and digital processes. Thereby, creditshelf covers the entire value chain: its platform is used to select suitable credit projects, analyze the creditworthiness of potential borrowers, and provide credit scoring as well as risk-adequate pricing. For these services creditshelf receives fees from both borrowers and investors.

creditshelf has been listed in the Prime Standard Segment of the Frankfurt Stock Exchange since 2018. The experts in the creditshelf team offer many years of experience in SME financing and are trusted partners and visionaries for the entrepreneurship of tomorrow.