Plus500 : 2022 Annual Report - 23 March 2023

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.

1. 'Over-the-Counter'products, namely CFDs ('Contracts for Difference').
2. Cash generated from operations / EBITDA.
3. Customers depositing for the first time.

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1. Customers who made at least one real money trade during the period.
2. Average Reveue Per User.
3. 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

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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

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