DGAP-News: Netfonds AG / Key word(s): IPO Netfonds AG makes successful stock market debut and prepares for launch of the FinFire platform 03.09.2018 / 11:57 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Netfonds AG makes successful stock market debut and prepares for launch of the FinFire platform - Initial listing in the m:access of the Munich Stock Exchange at EUR 29.50 per share - Go live of the first modules of the new technology platform FinFire in autumn 2018 - Interim Manager Ingo Middelmenne appointed to build up the Investor Relations department Hamburg, 3 September 2018 - Netfonds AG (ISIN: DE000A1MME74), a leading platform for administration, advisory, transaction processing and regulation for the German financial industry, today successfully completed its listing in the m:access of the Munich Stock Exchange. Initial listing was at a price of EUR 29.50 per share, which corresponds to a market capitalization of a about EUR 62 million. The shares of the company will also soon be tradable via the electronic trading platform XETRA of the Frankfurt Stock Exchange. "With today's listing at the stock market, we have reached another important milestone in the implementation of our corporate strategy," explains Karsten Dümmler, CEO of Netfonds AG. "Since deciding to develop Netfonds into a technology company for the financial industry in 2016, we have consistently focused on the development of our new platform and have already invested several million euros in programming the software solution." The company's development is focused on the complete digitization of all Business processes, especially through the technology platform FinFire, whose modular rollout will begin in the fall of 2018 after a good two years of development and extensive testing. FinFire is the first technology platform of its kind and enables its users from the finance and insurance industry to handle transactions and processes fully, safely and, above all, in every respect compliant with regulatory requirements. The offer is tailor-made for a wide variety of day-to-day business requirements, from financial and insurance advisors, wealth managers, fund management companies, to banks and insurance companies. FinFire basically comprises four segments: "Regulatory", through which the platform acts as a liability umbrella and as a process management tool, guaranteeing as a database a MiFID-II-compliant documentation and formwork system. "Wholesale", through which Netfonds offers its affiliated customers the opportunity to expand their own range of financial products to the entire range of products available in Germany, and in turn to be able to offer their own customers a comprehensive as well as independent product range. "Technology", which allows market participants such as banks and asset managers with their own structures to additionally access parts of the processing technology of the platform through software licenses or the outsourcing of services and processes. As well as "Marketing & Products", through which product providers can access external sales capacities in the form of e.g. roadshows or trade fair activities and expand their product portfolio with White Label products and own product strategies. "The feedback we received from our customers in the development phase of the new platform was directly incorporated into the development," continues Martin Steinmeyer, Chief Officer Sales & Marketing. "In autumn we will be able to introduce a mature product to the market. By the second quarter of 2019, it will be modularly extended to the last stage of development, from the complete administration of all types of insurance contracts to the administration of investment and strategy portfolios." The use of the platform as well as the products of the four core segments is carried out via a transparent billing system, which mainly charges via fees for the contracts managed or settled on the platform or via a percentage according to the investment volume managed on the platform. Since the system is especially attractive to its customers from a financial point of view compared to the costs of maintaining its own organizational structures, a large number of financial and insurance advisers, wealth managers, banks and financial service providers are already using the services of Netfonds AG. In the last two years alone, the assets managed through the platform have already grown from EUR 6.0 billion to EUR 9.0 billion, resulting in a steadily rising share of recurring revenues. At the end of the first half of 2018, the proportion of recurring revenues was already around 65 percent, with a clear upward trend. The initial listing of Netfonds was carried out as a pure listing without the implementation of an accompanying capital increase. In addition to the anchor shareholders of the company, which include the members of the Management Board and the Supervisory Board as well as their family members, Netfonds AG already has more than one hundred private and institutional shareholders attributable to the free float. The free float of the company is thus currently around 46 percent. "With a product that is so comprehensively tailored to the needs of financial market participants, we clearly benefit from the publicity effect of a stock market listing," says Board Member Peer Reichelt. "In addition, the capital market presence gives us the opportunity to use significantly more attractive financing options in order to actively shape the consolidation and digitization of the industry, if necessary." The Members of the Executive Board and Supervisory Board and their families plan to keep the majority of shares of the company as anchor shareholders. In order to guarantee regular and transparent communication with the capital market in the future, the company has assigned the experienced interim manager Ingo Middelmenne to set up the Investor Relations department. In addition to participating in capital market conferences in Frankfurt and Munich, the company will actively present itself in the coming months to institutional investors in Germany, France and the United Kingdom in the course of roadshows and one-on-one discussions. In the medium term, the company is aiming for a listing in the regulated market of the Frankfurt Stock Exchange. Against the backdrop of the continuing dynamic development of the company, the Executive Board of Netfonds AG assumes gross sales of between EUR 92 and 97 million (2017: EUR 86 million) for the current 2018 financial year and net sales of between EUR 19 and 20 million. Euro (2017: EUR 17.1 million). An official outlook for the development of sales and earnings in the current financial year will be published by the company with the publication of its half-year results on 25 September 2018. Further information on the Netfonds Group and its affiliated subsidiaries can be found at www.netfonds.de. Contact Ingo Middelmenne Head of Investor Relations Netfonds AG Heidenkampsweg 73 20097 Hamburg Mobile: +49 - 174 - 90 911 90 Phone: +49 - 40 - 822 267 355 Email: [email protected] About the Netfonds Group The Netfonds Group is a leading platform for administration, advisory, transaction processing and regulation for the German financial industry. Under the FinFire brand, the company provides its customers with a web-based technology platform that enables users from the financial industry to handle financial market transactions fully, securely and, most importantly, fully compliant with MiFID II requirements. The offer is tailor-made for a wide variety of day-to-day business requirements, from fund management companies, asset managers and financial advisers to specialist banks and insurance companies. Customers of Netfonds thus benefit from the most modern software solution on the market, which significantly simplifies the advisory process, makes it secure and enables target group-specific product marketing. With a total of 165 employees, the company generated gross revenues of EUR 86 and net revenues of EUR 17.1 million in 2017. The share of Netfonds AG is listed under ISIN DE000A1MME74 in the m:access of the Munich stock exchange and will be traded on a timely basis via the electronic trading platform XETRA. --------------------------------------------------------------------------- 03.09.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- 720005 03.09.2018