Dear ladies and gentlemen, welcome to the Webcast Results Q1 2020 21, I'm sorry, of Hyperfoil SE. At our customers' request, this conference will be recorded. After the presentation, there will be an opportunity to ask questions. May I now hand you over to Roland Slabke, who will lead you through this conference. Please go ahead.
Yes. Welcome from my side to the presentation of our results of the Q1 of 2021. As you know, you are part of the journey of digitalizing the credit housing and insurance industry here in Germany. And as you may know already, we had a pretty good start in the year. We were growing by 10% to €100,000,000 in revenue and by 50% to above €12,000,000 in EBIT.
Record quarter for HyperPort, So a good start in the year 2021. Even when you're used to double digit growth And bottom line from us. The 7% top line growth is well on track. There are a number of issues Which I will introduce to you why the 7% is a solid start in this year and why we are going to This is our forecast and feel pretty well with our forecast for this year based on the Q1 numbers. As always, we start to look in the market environment, what is the German housing market doing, what is the COVID environment doing to this to our markets and to our business model.
So let's have a look on the credit industry here in Germany, COVID and the response to the 3rd wave In Germany, let's say, are still significant, Let's say pain for the society in general. For the credit industry, it's not A big challenge. The banks are working. You are able to get a mortgage. You are get to get a personal loan.
You are able to finance your business. It all works on an operational level. The ability of especially the regional banks to adapt to this current environment And to digitalize their processes already during this environmental change is limited. So we see Significant slowdown in IT projects and change projects in the credit industry, which slows down our growth track Slightly. Beside this, especially on the mortgage market side, you can say that The you own for walls, but never more important here in Germany than right now.
People are looking to adjust to the new reality. They are looking for houses outside of cities to have more playground for the children. They are looking for larger apartments with home office Space to adjust to the fact that in the future home office will be more normal than in the past. So there's a lot of demand in the market. We see a slightly increasing number of transactions when you compare this with Summer and autumn last year.
And we see rising prices steady in Germany. It's now more than 10 years in a row that we are see a from a pricing perspective, a very attractive market. It's a reaction of increasing demand and still a limited amount of supply, what happens here. Okay. And the Corporate Finance market, you can say that banks in the Q1 realized that P and Ls and balance sheets are not as strong as anymore as they were pre pandemic Because they get the 2020 results now from their clients.
So the appetite of banks to fund Businesses is lower right now. And with the uncertainty how long this current situation will still last, The appetite of additional risk is limited. Plus, thanks to More subsidies, our government wants to put especially in innovation and Ecological Investments, we see an increase in subsidies for corporations, Which will be effective 1st July 2021. So for Corporates, it makes sense to postpone the financing of projects right now to the second half of this year to get higher subsidies Then again, the first half of this year. So all in all, a pretty weak environment for corporate financing in the first quarter.
Consumer Finance, consumer credits are down double digit from the pre corona level Because it's just difficult for consumer right now to spend money. If you can't travel, it's difficult to make Consumption at all right now. So demand is lower than the pre crisis for last year in the beginning of last year. And as well the let's say appetite of banks and other lending companies For personal loans is limited right now because of the uncertainty of the current situation. So this in this market, we see a small decline.
And looking forward, we expect a sharp rebound after the economy is fully reopened And consumer are able to fill up what the demand which they had to save during the last quarter. All in all, the German housing market is and all the mega trends we saw here Pre corona are well intact. We see that the net migration to Germany On a lower level, it's ongoing still. And we expect with the reopening of the economy and the reopening of the borders here in Europe That we will see a massive net migration from Eastern and Southern Europe to Germany, thanks to the huge demand for Skilled workers in Germany and the faster recovery of our economy compared to the Eastern and Southern Europe areas. Life expectation is increasing systematically and will increase after pandemic as well.
We will be better in managing our health long term. And with this, people will live longer than we live more living space for them. And the fact that more and more people live in single household, which is ongoing trend during the pandemic as well, We will not change. So the demand for housing, which is already close to €2,000,000 here in Germany, will keep growing. Our construction site is So weak and slightly dropped in 2020.
And we see as well in the Q1 that there is no acceleration in Construction approvals or construction commission here in Germany. So from this, we can expect increasing rents, increasing property prices. And with this increasing property prices and ongoing process of higher mortgage volumes and increased Volume of the mortgage transactions, even when the number of transactions stays the same, we are looking on a growing market. For the Q1 this year, Bundesbank reported a 7% increase in new mortgages underwritten by banks. This is in line with what we saw on the platform.
And later, I will show you the gain in market share Your pace could actually achieve in this market environment. So when you look on the a perspective of the real estate market and our propositions here. On the sales side, we see a stable volume of transactions. Our clients, usually they're real estate agents of banks. Because of the less active branch networks, lost some market share, pretty sure, But all in all, stable in the business model and we have a stable relation with them and we are on the way to help them to Be more digital and approach consumers more digital and have a higher market share based on their strong brand In the online business as well.
In the valuation business, we see that banks are busy, This plus 7% for the Q1, which was reported by Budesbank, is showing Pretty well that there is business, there is valuations to be done. On the other side, we see a slowdown in the processes within the bank. So there's Piling up some valuations that needs to be done. So not everything what was underwritten by banks And it up to be in valuation in the Q1 already because of their, let's say, troubling back offices in the current environment. So something to be to, let's say, fill up the pile and increase the flow As soon as we get to more normal business environment again in Germany.
On the housing association side, good news is that we still don't see any defaults on rents, thanks to the social system here In Germany, so housing associations are pretty strong. I don't feel any pressure from the risk side of the business. Unfortunately, we are the aggressor in this market. And to convince banks to migrate their Stitch the solution to a new player in let's say, the industry is not used to do this remotely And it slows down our sales standard that we are still in a pretty remote environment when you look on the business side. Yes this time, but it's yes, let's say, It's not a lot from our perspective that this industry Doesn't feel any pressure from the income and risk guys.
And on the other side, it's Such a stable environment that they don't need to act fast. But as banks, this will change as soon as we reopen our economy. So same goes, you can say for the insurance industry where we operate with Smart InsurTech. There's Just a little impact on the new insurances underwritten in Germany here. The main contractual volume and value is slightly increasing, thanks to Inflation based, incremental increases and the premiums.
So healthy business, no defaults, no losses, No special losses during this pandemic for the insurance industry. Need for digitalization keeps to stay high. Execution excellence is like in banks and housing associations low. So we prepared with them the digital future, But need to wait for the execution after the lockdown is open. So how our 4 business segments performed within this general environment?
As always, we start with the Credit platform in the center of the EurpACE system, maybe this is a good part To recognize the funding part, which did the first transaction in the Q1. So we are live In the corporate finance space, it's still as a platform. Even then, corporate finance in general was weak, as I said, thanks to Changes in subsidies and risk appetite of banks. So but all this is credit platform. And We start with EuropACE to understand how we performed overall.
So EuropACE, mortgages, personal loans, Building finances, Bauschnerfertheide grew by 30% in the first quarter, which is a Really strong growth, Jack. And when you compare this with the overall market environment, a double digit gain in market share again. In mortgages, we grew by 34% compared to 7% total market increase. So we outperformed the rest of the market by 27%, so a great dynamic. And Within the pandemic environment, what you see is that partners of us which are Using your PACE already in the sales force or where far with their project already pre pandemic and launched it during the pandemic Are now outperforming the rest of the market, which is still offline or in traditional IT systems, which are not as well Automated and digitalized and integrated as you pay this.
So Without the pandemic environment, we would have been going faster even because of the ability to bring IT project and change projects For what in banks? So this plus 34% in the mortgage business just shows how much work we did pre crisis and how Well, your pace partners outperformed the rest of the market. As a contrast to this, you can say personal loans, just Black 0% growth. This is happening in a market environment with a high double digit loss in market volume, Thanks to the less demand of consumers for personal loans. So Yes.
Well, it's above the digit growth. Just you can't see it because it happens in a stressed market environment. Looking forward, latest in Q3, we expect reopening here in Germany of the economy and Sharp increase in demand from personal loan side, and we expect to participate from this. So getting not only on a relative growth track, but as on an absolute growth track with the transaction volume. What we deliver here on your pace, it is not a long word.
Lending finance, often linked with mortgage financing. You see here that the risk Appetite of consumers changed slightly, so especially long interest security is right now not as important than a privacy project. This is as well in line with the fact that the average duration of a mortgage declined from 40.1 to 30.2 years Here in Germany. I will come back to this later. Okay.
Looking on the four segments of your page, you can say that All of the 4 segments were growing in the Q1. Mortgage broker again took market share from banks, And they are growing pretty well. We are impressed by the growth track, the mortgage bookers are here in Germany. In addition, especially in the regional retail banks, we See that our long term investments in key account resources and politics in these two sectors helped to stay on the growth track. In the corporate banking sector, we grew by 85 percent to €3,000,000,000 first time mainly outperforming the savings bank More than €600,000,000 in volume.
So this is a huge success. And when you consider that it's really difficult right now to onboard new cooperative banks and to bring the projects within the cooperative banks forward Because of the pandemic environment, that 85% is even more impressive. So without the pandemic, we would see a 3 digit growth rate here. But this is let's say, it's just a little bit postponed. We will get this volume on the platform as well.
On the Savings Bank side, plus 36% growth rate. This is slightly above the total growth track on the European side. You see here that We have still a very good sentiment and the savings banks honor the New cooperation with the financials for Matic, centralized IT service provider. But the execution in this environment is lagging behind. So It's only 36%.
It could be slightly higher as well without the stress in the environment, which we have right now. So Well on track, you can say. In all sectors, we are gaining traction. All banks are very well aware that the loss of market share, which they see right now to brokers and to Your pace partners is incentive for them. It's a pressure for them to digitalize as well.
So we see a very, very well filled pipeline on both sectors, Finland and Genopase and in this private banks To go forward and get on the train of digitalization with your pace As the core infrastructure here for mortgage business in Germany. So when you compare the 34% mortgage growth or 30% transaction volume growth with the total growth number of the segment, Then this 12% growth rate is a little bit disappointing. So some events to be explained here. 1st of all, if you just look on the mortgage business, we would see 16% Mortgage revenue growth. This compares with 34% transaction volume growth.
And the underperformance is linked to the fact that the duration went significantly down. Yes. So this 1 year less duration overall costs us roughly 8% in revenue Because shorter durations are has a lower transaction fee than longer durations. In addition, we see that banks in the Q1 were not able to process everything. All applications take up from brokers via the platform so that they are piling up, so their Process duration is increasing, and this means for us a postponing of revenue as well.
Both FX lead to a revenue growth of 16% based on the 34% translation volume growth. So from the 60% to the 12%, the 4% difference It's linked to the fact that personal loan business, especially the white labeled personal loan outplacement business where we Being denied or disapproved credit of 1 bank to other banks is significantly down in this environment. So we are losing revenue in this business. Right now, in the current environment, this slows down our numbers. And the fact that corporate clients postpone their financing projects Based on subsidies expected after 1 July this year, declines our revenue in the Corporate Finance Business.
So these two declines slows down the growth of the overall segment as well. So nice, let's say, nice compensation for this is That we see a strong growth in profitability. Even this slowdown in the personal loan and the corporate finance business, You can see here pretty well that as soon as we are slowing down our heavy investment in the future, Yes. Our profitability in our pretty scalable business models shows up well on EBIT level. Yes.
In addition, we saved some costs on travel and hospitality during the current environment. But the let's say, the fast increase in profitability when you don't expand your organization is pretty visible in the Q1 Yes, in this segment, Credit Platform. So our next platform and next segment, Private clients, franchise system on our lead generation under the backdrop of client Performed as well pretty well in the Q1 2021. First, this is pretty important for the near term future and the growth track there. We are well on track in onboarding new advisers for the network, more than 600 qualified advisers, First time that we crossed the number and a nice double digit drop here.
In the beginning of the pandemic, this was A bottleneck. And we saw a significant slowdown in new advisers entering the franchise system. This changed to the end of the year and this continues at the beginning of the year. So our franchisees are growing together with us. As a result of this growth track, we see a record number in Transaction volume is first in the Q1, euros 2,600,000,000 in mortgages advised here in Germany, Yes, plus 40%.
Let's say, it could be higher when we wouldn't have had such a strong Q1 in 2020. Just to remind you, in 2020, Doctor. Klein was more or less the only large brand which were able in March already to Operate fully digital in a remote approach and advise clients video based. And we had a great conversion rate at this time and extremely high productivity of our advisers. Now, 1 year later, other mortgage brokers and even some banks are able to operate in Remote environment as well, and they increased their conversion rates.
So you can say our decrease to a more normal level again. And that's why this slowdown, which you see is well linked to the fact that had some pretty good outperformance in the Q1 of 2020. So what we are well on track and Yes. We are running here a very healthy brand in Germany, and the demand of our consumers for an independent device advice is increasing. This 14% transaction volume growth converted to a 6% revenue growth.
This underperformance is linked to the fact that we are selling more and more regional banks as well in the network and regional banks Still have a lower income level for the Broker client franchise network than specialized mortgage events. So the success of FINMA and Genopace helps Doctor. Clyde to be recognized As the more and more independent and the whole market covering mortgage broker with more than 700 banks available there. But on the other side, the average Revenue stream for mortgages slightly going down. That's why only a revenue increase of 6% right now.
Thanks to the investments we did, especially in 2019 or started to do in 2019 And renegotiation, all the business relations that Doctor. Klein needs with Regional Bank's profitability is up by 23%. You're record high, €6,200,000 EBIT, which is, you could say, it's slightly above our expectation, yes? In relation to gross profit, we are above 50% EBIT margin. We expect long term and healthy Comparability of something around 35% to 40%.
So please don't expect that this 50% will stay forever. We see that we are saving some costs, which we would be usually part of the business model to entertain the franchise partners, to host events for them, German, right and local. And this sales cost will come back and will slightly decrease the EBIT margin of this business Long term again. But good to see how profitable our business model can be when it's necessary and Then the environment fits to our to the way how we do the business. So now of the 2 traditional segments, we are coming to the growth segments With let's take half their challenges in the current environment To deliver the growth track they are expected to have.
1st, real estate. You are aware of this. We are targeting here the homeownership market on one side and the rental market on the other side. Core for the long term strategy of HyperPort is the homeownership market because of the Should synergies that we are able to realize in combination with Europix and our dominant role in the mortgage market here in Germany. We use this position to gain market share on the property sales side with the fire system And on the property valuation side, the value AG.
So yes, during the Q1, we could see results of this Again, especially on the valuation side, value AG is getting closer to 10% market share All valuations, let's say, touched by value AG? And still even in this 10% not everything is Not the whole valuation, not everything is done by value AG. So there is still a lot of potential for growth here. And Then you see this how Europe has just keep growing now at 31% here. There is a huge potential of A very scalable business model here.
On the other side, Faiyo, the property sales platform, Let's say, couldn't show growth and market share gain in the Q1 because of our strong links to banks, bank branches And the real estate agent in branches. The networks are still partly closed. The activities in the branches is low. So the Real estate agents are of banks right now lag behind the rest of the market. This is short term negative for the dynamic that we see here.
Midterm is positive because they understand more and more how important it is to fully digitalize their approach and to be part of A digital ecosystem where consumers start their journey to find a new home online and not in the branch anymore. And we are their partner To enable them in this journey and to be part in the digital transformation and in the world where homes are So it more and more online with some physical touch point and contact and trust needed. So while short term, we see a negative impact from the COVID environment, Mid term, we expect an acceleration of our growth track in this segment. Yes, talking about it. Yes.
When you compare this with the end of 2020, we just slightly increased our market share in savings in Corporate Bank, so we are 88% in the Savings Bank world still and 11% in the Corporate Bank. So acquiring new Clients for the fire platform during this lockdown was not possible In the Q1. This is we increased revenue, which especially recurring revenue Based on additional services we render to our clients and change in pricing structure, Because of the fact that we stopped doing project business with onetime revenues And the decline of this part of the revenue structure, this unit shows right now minus 15% year over year. If you would take this out, this project business, the recurring business model was growing double digits. And this base of additional service is not additional clients because of the difficulties in acquiring them.
ValueEdge was able to acquire more clients, but in the course takes the strong relations at EuroPACE and the fact that they can more easily access this Pool of 770 EuroPACE partners, which have a successful business relation with us. And It's just easier to sell to upsell something which is integrated in the total the whole mortgage process Selling, let's say, a different solution back to Thijer. So they went up to 4 61 Contractual Partners starting new business with lots of them. Total growth for the Q1, 15% from a very strong Q1 2020. The numbers would have been even higher if not banks would pile up some applications in their back offices Because of the inability to process them fully and get the Necessary data and documents for the validation to value AG.
So could have been higher, but it's still pretty good that we grow in this environment by 15%. Even more important is we do this with a stable headcount in this year. So while end of 2019 and beginning of 2020, we had to scale hiring more and more people In this still pretty fragmented and not very digital business, We are now able to scale based on more and more digitalization of our business here. So we are building the Future valuation platform for Germany and efficiency gains that the people who are running more and more business on It's linked to the higher percentage of digitalization that we put into our system. I think you are aware of this that we started to gain market share first and build the system under it, Not the 1st business instrument later, try to gain the market share here.
So we are still bearing some costs here from the The manual work that we still have to do, but step by step we see that Our vision of getting more and more digital approach to this process and adding more and more value automated It's working and paying back. So Value AG is well on track to get out of the Investment phase and to be a positive contributor of not just revenue growth, but as well profitability growth. So our last segment, the financing platform for housing appreciations and their portfolios. Thanks to some volatility in the interest rates. And even with a lot of postponed building projects Because of the pandemic, we see a stable environment.
It was a pretty good Q1 for this segment, And we grew by 6% in revenue. So this It has a nice stabilizing factor. And when you look mid term, this is still a market proposition we are in As soon as we finally start to build social housing in Germany again on a scale that will deliver the 2,000,000 Missing units, we will see a huge amount of financing needed. And we are ready and ready for this To be financed by Doctor. Klein, our real estate platform here.
So all together, All this development together and especially because of the reduction in project business, We see a slight increase in revenue only. If you take out the project business, We would see a growth rate of roughly 10%, which is still below our expectation for this segment and for the growth track we want to see it on. So we said 2020 2021 will be heavy investment phase for this segment. You see this in the probability of €200,000 This investment will pay back when The pandemic is over and we are getting to a more normal market environment where we are able to acquire new businesses New business partners here more efficient and bring the necessary IT projects with them for what so that they migrate on our platform. So right now, we are progressing on the product side.
On this market side, It's still too much affected that we see not enough growth overall. So Then to the last segment, as well as growth segment, insurance market here in Germany, a little bit similar To the housing industry, as I said already earlier in the market environment, they had a they don't feel a Hard time. There are no losses in the insurance business right now. Small decline in new business at all. Just a lack of bringing IT projects forward delays our growth track here.
But we see that we are especially with smart Intratech gaming traction and the migration of Contextual volume out of the, let's say, local IT infrastructure, Which we which is run on licenses of a software company which we acquired To the centralized cloud based smart Internet platform. This migration path is the core necessary step To establish an insurance platform for the whole industry where insurance brokers and insurance companies Share the same data and the same vision and processes are fully automated based on validated data for them. So the total market in Germany is roughly €200,000,000 €8,600,000,000 of this is in systems, which are which were Developed by companies that we acquired. Out of this, we are at €2,800,000,000 migration Volume. So out of the total volume of the market, you could say we are at 1.4%.
Out of the Insurance broker market, we are at roughly 5%. And Out of the total volume of systems that we control, we are Around 30% share now. So out of this €2,800,000,000 contractual Insurance let's say, contractual portfolio of insurances in our smart interbank system, 15% are validated. It means there is a there is a connection a virtual connection, That mean the data in our system and the data in the core insurance system of the insurance company to make sure that All information at all. Our platforms are accurate and all services that we render in an automated way To the insurance broker and to the consumer are based on 2 datas.
And with this, we are able to get in a certain level of execution automated And a certain level of quality, for instance, if you automate the life process? Yes. We are struggling to keep this number up now for, you can say, close to 2 years. And We finally now feel that we are gaining traction, but pipelines for the migration of Existvig partner is Well filled and our conversion rates are stable there. And the pipeline for new brokers joining the platform And migrating their data portfolio to Smart Insured is well filled and stable as well.
So we see that all the investments that we did in the last years in building interfaces and Establishing additional services which you are able to use only when you are migrated all your data It slowly start to pay back, and we are having a positive feedback from The market not just by emphasizing that it's a cool thing what we built, but by migrating volume to the platform. And from now on every quarter, you will see Our growth track on both on the fact how many billions are already migrated to Smart Intratec And how high is the percentage of validation within this data structure so that we are really getting from being a Software solution for agents to a platform for the total market. The impact on the revenue side is still slow. We are still facing a declining license portfolio and project business And replacing this with recurring revenue out of that platform business and still the growth Let's say the gain in additional production volumes based on the growth that we saw on the platform is compensated mainly By a lot of other revenue streams. So this is this transformation from one time revenue to recurring revenue It's time consuming, especially when you're in the middle of a pandemic and projects are not going forward as fast as they could and should.
But we see that our let's say, our investments pay back and that we gain this traction and we are getting steady forward. So it's an investment phase though. We expect in the next couple of quarters to see an acceleration In the migration volume and the speed of the migration of the volume of the platform And based on this acceleration of revenue growth as well. Sir, for Highport, as a total, 1st quarter ends with double digit growth on the earnings side and profit side And with new records in the revenue side, we are well on track To scale and expand our business as we did it the last 20 years, more than 20 years, And we feel pretty comfortable with our current estimation for the 2021 figures. So our forecast of the Q1 pays pretty well to the focus of €430,000,000 to €460,000,000 in revenue and €40,000,000 to €45,000,000 in profit.
So I would now hand back to Ms. Sander for the Q and A session.
Thank you very much. We have no questions. So I would like to hand back to you, Mr. Stoecker.
Yes. Thank you. Okay. Then maybe all questions are answered again. Hope to hear and see you soon here in 3 months.
Beginning of August, we'll represent half year figures. We feel pretty comfortable about the ongoing year and let's see if we are able to deliver again a record quarter after this Pretty well start in 2024. So hope to see you soon and bye bye.
Ladies and gentlemen, thank you for your attendance. This conference has been concluded. You may disconnect.