Interim / Quarterly Report • Aug 11, 2021
Interim / Quarterly Report
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| JDC Group AG at a glance | 3 |
|---|---|
| Management Board letter to shareholders | 5 |
| Group management interim report | 9 |
| Situation of the group | 9 |
| The group's business model | 9 |
| Research and development | 9 |
| Economic report | 9 |
| Overall economic conditions | 9 |
| Sector-specific conditions | 10 |
| Competitive position | 10 |
| Business performance | 11 |
| Situation | 12 |
| Major key figures | 12 |
| Financial position | 12 |
| Cash flows | 13 |
| Earnings performance | 14 |
| Segment reporting | 14 |
| Opportunities and risk report | 15 |
| Outlook | 16 |
| Economic outlook | 16 |
| Markets and sector outlook | 17 |
| Outlook for the JDC Group | 17 |
| Consolidated financial statements | 18 |
| Consolidated income statement | 18 |
| Consolidated statement of comprehensive income | 19 |
| Segment reporting | 20 |
| Consolidated balance sheet | 24 |
| Consolidated cash flow statement | 26 |
| Consolidated statement of changes in equity | 27 |
| Notes | 28 |
| Contact | 42 |
At a glance
| P & L in kEUR |
2. Quarter 2021 | 2. Quarter 2020 | Changes compared to previous year |
30/06/2021 | 30/06/2020 | Changes compared to previous |
|---|---|---|---|---|---|---|
| kEUR | kEUR | in% | kEUR | kEUR | year in% | |
| Revenues | 32,644 | 27,381 | 19.2 | 68,611 | 58,820 | 16.6 |
| Gross margin | 8,972 | 7,981 | 12.4 | 18,853 | 16,880 | 11.7 |
| Gross margin in % | 27.5 | 29.1 | –5.5 | 27.5 | 28.7 | –4.2 |
| Total operational costs | 8,747 | 8,125 | 7.7 | 16,939 | 15,933 | 6.3 |
| EBITDA | 1,506 | 939 | 60.4 | 4,343 | 3,134 | 38.6 |
| EBITDA margin in % | 4.6 | 3.4 | 35.3 | 6.3 | 5.3 | 18.9 |
| EBIT | 225 | –144 | > 100 | 1,914 | 947 | >100 |
| EBIT margin in % | 0.7 | –0.5 | > 100 | 2.8 | 1.6 | 75.0 |
| Net profit | –235 | –509 | 53.8 | 980 | 190 | >100 |
| Number of shares in thousands (end of period) | 12,623 | 12,660 | –0.3 | 12,623 | 12,966 | –2.6 |
| Earnings per share in EUR | –0.02 | –0.04 | 50.0 | 0.08 | 0.01 | >100 |
| Cashflow/Balance sheet | Changes | ||
|---|---|---|---|
| in kEUR | 30/06/2021 kEUR |
31/12/2020 kEUR |
compared to year in % |
| * Cash flow from operating activities |
4,866 | 2,805 | 73.5 |
| Total equity and liabilities | 94,691 | 91,791 | 3.2 |
| Equity | 28,268 | 27,288 | 3.6 |
| Equity ratio in % | 29.9 | 29.7 | 0.4 |
| *30/06/2020 |
Stefan Bachmann CDO
Ralph Konrad CFO, CIO
JDC GROUP FINANCIAL SERVICES | Annual Report 2007 4
Dr. Sebastian Grabmaier CEO
JDC Group AG boosted its growth and profits significantly in the first half of 2021, exceeding the Management Board's positive growth forecast for the year as a whole.
Consolidated revenues grew by around 17 percent to EUR 68.6 million in the first half of 2021, while there was also a significant improvement in profits, with the Advisortech and Advisory divisions again both contributing to the growth in revenues and profits.
The JDC affiliates reported major successes in the second quarter:
In June, JDC Group AG and an affiliate of Provinzial Holding AG signed an agreement to set up a joint venture by the name of Einfach Gut Versichert GmbH, formalising the letter of intent signed in February. This collaboration agreement will enable JDC to make the exclusive third-party insurance platform available for around 100 savings banks in Provinzial's business region in the coming years, expanding its current business volume considerably as a result.
The acquisition of MORGEN & MORGEN GmbH just a few weeks ago expands JDC's own platform in the areas of data analysis, software development and product knowledge with an analysis of the prices of all insurance products marketed in Germany. Prices can now be compared and rated across all data dimensions, and products can be recommended and sold with the aid of algorithms and artificial intelligence.
However, the data and analytics expertise is aimed not only at customers and intermediaries, but especially at insurance companies, which can benchmark their products against the competition with the aid of the MORGEN & MORGEN data and target their product policy effectively. Producers regularly use data and calculations from MORGEN & MORGEN for internal insurance comparisons and analysis, ratings and rankings. With Volatium, the company has also developed a single standard for full transparency and comparability of return probabilities for all German pension products. MORGEN & MORGEN's company and product ratings are among the highest in the German market.
The acquisition of MORGEN & MORGEN GmbH makes the JDC platform even more attractive for its intermediaries and customers.
As a result of the sustained platform investments in the past few years, JDC Group AG emerged as the winner in an extensive market study by management consultancy firm TME on providers of financial platforms, which was published in 21/04/2021. The study, which entailed an in-depth analysis and comparison of all JDC Group AG's competitors, found that JDC's platform functionalities are sophisticated and particularly strong on customer support and data processing. They open up the business of insurance for all market participants. This enables banks to work with the systems as brokers, multi-tied agents and exclusive agents. The study also found that JDC's retail customer front end, based on the web app 'allesmeins', is a reliable aid for consumers' own management of insurance contracts. Here, JDC also offers a wide range of products, from white label solutions to API communication through the platform.
Consolidated revenues increased by around 17 percent in the first half of 2021, to EUR 68.6 million (first half of 2020: EUR 58.8 million). In the second quarter, there was an even steeper increase of 19 percent in revenues, which amounted to EUR 32.6 million as against EUR 27.4 million in the same quarter of 2020.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were up by around 39 percent in the first half of 2021, at kEUR 4,343 (first half of 2020: kEUR 3,134). The second quarter saw EBITDA leap by around 60 percent to kEUR 1,506 (second quarter of 2020: kEUR 939).
Earnings before interest and tax (EBIT) more than doubled to kEUR 1,914 in the first half of 2021 (first half of 2020: kEUR 947). In the second quarter there was also a significant year-on-year increase in EBIT, at kEUR 225 compared with kEUR –144 in 2020.
The consolidated profit increased fourfold to kEUR 980 in the first half of 2021 (first half of 2020: kEUR 190). The consolidated profit for the second quarter rose to kEUR –235, compared with kEUR –509 in 2020.
Equity was EUR 28.3 million as at 30 June 2021. Thus the equity ratio grew to a healthy 29.9 percent (31 December 2020: EUR 27.3 million and 29.7 percent).
| Overview in kEUR |
Q2/2021 kEUR |
Q2/2020 kEUR |
Changes in % |
1. Half of 2021 kEUR |
1. Half of 2020 kEUR |
Changes in % |
|---|---|---|---|---|---|---|
| Revenues | 32,644 | 27,381 | 19.2 | 68,611 | 58,820 | 16.6 |
| Advisortech | 25,848 | 22,449 | 15.1 | 56,449 | 49,565 | 13.9 |
| Advisory | 9,038 | 6,928 | 30.5 | 17,291 | 13,998 | 23.5 |
| Holding/Consolidation | –2,242 | –1,996 | 12.3 | –5,129 | –4,743 | 8.1 |
| EBITDA | 1,506 | 939 | 60.4 | 4,343 | 3,134 | 38.6 |
| EBIT | 225 | –144 | >100 | 1,914 | 947 | >100 |
| EBT | –146 | –504 | 71.0 | 1,174 | 220 | >100 |
| Net profit | –235 | –509 | 53.8 | 980 | 190 | >100 |
The revenues generated by the Advisortech segment grew by around 14.0 percent in the first six months of 2021, to EUR 56.4 million (first six months of 2020: EUR 49.6 million). Second-quarter revenues were up around 15 percent year on year, at EUR 25.8 million, compared with EUR 22.4 million in the same quarter of 2020.
Earnings before interest, tax, depreciation and amortisation (EBITDA) in the first six months of 2021 were up again on the same period of the previous year, at EUR 4.5 million compared with EUR 3.7 million, a year-on-year increase by 20.7 percent. EBITDA rose to EUR 1.5 million in the second quarter of 2021 (first six months of 2020: EUR 1.2 million).
Earnings before interest and tax (EBIT) increased to EUR 2.7 million in the first six months of 2021 (first six months of 2020: EUR 2.0 million). EBIT thus improved by as much as 36.2 percent. EBIT rose to EUR 0.6 million after EUR 0.4 million in the same period of the previous year.
Excluding the non-recurring project costs for the acquisition of MORGEN & MORGEN and the establishment of the joint venture with Provinzial, the earnings (EBITDA and EBIT) for the second quarter – and therefore also the first half of the year – would have been around EUR 0.2 million higher.
In the Advisory segment, revenues in the first six months of 2021 grew significantly by around 24 percent year-on-year to EUR 17.3 million (first six months of 2020: EUR 14.0 million). Revenues for the second quarter increased to EUR 9.0 million, compared with EUR 6.9 million in the weak second quarter of 2020.
Earnings before interest, tax, depreciation and amortisation (EBITDA) in the Advisory segment have significantly improved to EUR 0.9 million in the first six months of 2021 (first six months of 2020: EUR 0.4 million). EBITDA rose to EUR 0.5 million in the second quarter of the current year (first six months of 2020: EUR 0.2 million).
Earnings before interest and tax (EBIT) were also up in the first six months of 2021 and stood at EUR 0.4 million (first six months of 2020: EUR 0.0 million). EBIT increased to EUR 0.3 million in the second quarter of 2021 (first six months of 2020: EUR 0.0 million).
We confirm our positive assessment for the remainder of 2021 and are slightly increasing the guidance previously published:
For 2021 we now expect revenues to grow to between EUR 140 million and 145 million (as compared with the previous estimate of between EUR 135 million and EUR 142 million) and EBITDA in excess of EUR 8 million.
Finally, we would like once again to thank in particular our staff and the distribution partners of JDC Group AG and of our subsidiaries, as it is on their commitment and motivation that our success is based.
Thanks are also due to our shareholders, who believe in our business model and provide reassuring support to the Management and Supervisory Boards.
We very much hope that we can enjoy your continued support.
Yours sincerely
Dr. Sebastian Grabmaier Ralph Konrad Stefan Bachmann
In the Advisortech segment, JDC Group AG offers a digital platform for insurance, investment funds and all other financial products and services. By offering and handling the full range of products from all product providers in the financial market – in addition to supplying all data and documentation – with its vision systems and interfaces it creates the perfect workplace for financial intermediaries of all kinds (brokers, agents, corporate brokers, banks, tied agent networks and fintech companies) and the first real 'financial home' for financial service customers. Using a smartphone app, a tablet or a PC, customers and agents can obtain a complete overview of their individual insurance and investment fund portfolio, with simple conclusion processes and transfer options, and also a complete market comparison, so that customers and advisers can optimise the insurance and retirement provision easily and cost effectively. In the Advisory segment, approximately 300 well-trained advisers under the FiNUM. brand complete the platform offering for discerning high-end retail customers.
In the Advisortech segment, we offer advanced advisory and administration technologies for our customers and advisers through the Jung, DMS & Cie. Group. JDC Group develops its own software solutions for this purpose. In the first six months of 2021, the value of work generated for our own purposes and capitalised was kEUR 578. For further details, please see the notes to the consolidated financial statements.
The German economy started the year 2021 on a negative note. According to the calculations of the Federal Statistical Office of Germany, the gross domestic product (GDP) for the first quarter of 2021 was down 2.1 percent in comparison with the preceding fourth quarter of 2020. The second quarter of 2021 saw an increase of 1.5 percent in gross domestic product (GDP) in comparison with the previous three months of the year. This recovery was primarily driven by consumer spending and government consumption expenditure. In a recent statement by the International Monetary Fund (IMF), the global economic growth forecast for industrial countries was revised upwards. By contrast, the forecast for poorer countries was lowered. Access to vaccines is seen as critical for a faster recovery.
The German investment funds industry saw net inflows of around EUR 60 billion in the first three months of 2021 – the best first quarter in six years. A significant inflow of EUR 31.2 billion was recorded in specialised institutional investment funds, while EUR 29.4 billion was newly invested in retail funds.
Members of the German Investment Funds Association (BVI) were managing EUR 1.28 trillion in retail funds at the end of the quarter. Open-ended specialised institutional funds contributed EUR 2.0 trillion to the total assets under management.
The investment funds industry as a whole was managing assets totalling EUR 3.95 trillion for investors at the end of March 2021. This represents an increase of 2.5 percent compared with the end of December 2020.
Premium income in the insurance industry was up slightly in 2020 compared with the previous year. The increase was caused by growth in private health insurance, non-life insurance and life insurance. The upward trend is expected to continue at around 2 percent for the remainder of 2021 if conditions remain constant. According to the German Insurance Association (GDV), developments will be influenced by pent-up demand, some of which could fuel an increase in occupational pensions.
In private health insurance, premium income is currently rising slightly. Growth in premiums is expected to be slightly weaker in property and casualty insurance. In life insurance, premium income is on the rise again.
In 2021, the market for financial services will again be marked by continued uncertainty, volatility, low interest rates and higher inflation. The interest losses caused by low interest rates – particularly in the insurance business – will mean a further reduction in the net interest return on insurance products. Sales of investment and life insurance products should increase further in comparison with 2020 if the general conditions remain stable.
JDC Group AG competes with different companies in its individual business segments.
In the Advisortech segment, the JDC Group offers retail customers an intermediary service in relation to financial products such as investment funds, alternative investment funds, structured products, insurance and credit products via independent financial intermediaries (B2B2C) through its subsidiaries (JDC).
1) Unless otherwise indicated, all data in the following description of the market for investment products is from the investment statistics for the first quarter of 2021 provided by the German Investment Funds Association BVI (20 May 2021).
2) All data in the following description of the market for insurance products was taken from the industry data on the website of the German Insurers' Association (GDV) at gdv.de.
As a technical platform, JDC is in competition with all companies that use independent intermediaries to sell the above financial products to other intermediaries or retail customers. These include broker networks and broker pools such as Fonds Finanz Maklerservice GmbH and BCA AG, in addition to commercial banks, savings banks, cooperative banks and financial services distribution companies that target retail customers.
Also in the Advisortech segment, JDC offers white-label front-end services, which enable customers (banks, insurance companies, IFAs and retail customers) to view contract data via apps, online tools and web applications. JDC's competitors in this business include Clark and getsafe.
In the third subsegment, we offer advisory services for retail customers and a comparison platform for financial products. In this business, JDC is in competition with Verivox and Smava.
In the Advisory segment, JDC Group AG provides retail customers with advice and intermediary services in relation to financial products through its subsidiaries FiNUM.Private Finance Germany, FiNUM.Finanzhaus and FiNUM.Private Finance Austria (B2C). In principle, all the companies are in competition with a large number of market participants. Apart from financial services distribution companies and individual brokers, they are also in competition with tied agents of insurance companies and banks, along with companies that use direct distribution channels including the internet. Based on the different business models and target groups, JDC Group sees the following as the companies' main competitors:
FiNUM.Private Finance Germany, FiNUM.Finanzhaus and FiNUM.Private Finance Austria focus on providing advisory services to discerning retail customers (the mass affluent market) in Germany and Austria. The business mix consists in more or less equal parts of wealth accumulation and preservation (insurance business). The main competitors in this business are therefore commercial banks, private banks and large financial services distribution companies – such as MLP AG and Horbach Wirtschaftsberatung AG.
Owing to its high volume of business, its reliability and its increasing significance in the market, JDC Group AG is increasingly attractive as a partner to product initiators in both the insurance and the investment sectors. JDC Group AG is also attractive to financial services distribution companies or financial intermediaries seeking a strong institutional partner to which they can outsource their back-office functions in the rapidly changing regulatory environment.
Overall, the Management Board considers the business performance to have been positive.
This positive development is the result of an increase in revenues and profits in the Advisortech and Advisory segments. Combined with the investment business, which has picked up during the coronavirus crisis, the key account business is generating a significant increase in revenues. However, the coronavirus pandemic has also led to higher staff and office expenses to enable business operations to continue with minimal impact. This has had only a slight negative effect on profits, in which there is a clear upward trend overall. In the second half of the year we will announce further major projects, which will result in higher profits if costs remain constant.
For further information, please see the sections below on the position of the JDC Group.
| 30/06/2021 kEUR |
31/12/2020 kEUR |
Changes in % |
|
|---|---|---|---|
| Intangible assets | 51,438 | 47,930 | 7.32 |
| Fixed assets | 5,137 | 5,117 | 0.39 |
| Financial assets | 184 | 216 | –14.81 |
| Deferred taxes | 3,293 | 3,552 | –7.29 |
| Long-term non-current assets | |||
| Accounts receivable | 978 | 891 | 9.76 |
| Other assets | 1,072 | 1,746 | –38.60 |
| Current assets | |||
| Accounts receivable | 15,205 | 18,364 | –17.20 |
| Other assets | 1,935 | 1,838 | 5.28 |
| Cash and cash equivalents | 14,567 | 11,718 | 24.31 |
| Deferred charges | 882 | 419 | >100 |
| Total assets | 94,691 | 91,791 | 3.16 |
The Group's non-current assets as at 30 June 2021 amounted to EUR 62.1 million (previous year: EUR 59.5 million), of which around EUR 51.4 million comprised intangible assets (previous year: EUR 47.9 million). The increase is mainly due to the acquisition of another company, which was capitalised as a customer list as part of the initial consolidation.
Current assets remained steady at EUR 32.6 million (previous year: EUR 32.3 million). Since the beginning of the year, cash at banks have increased by EUR 2.8 million to EUR 14.6 million.
Total assets increased from EUR 91.8 million in 2020 to EUR 94.7 million in 2021. This was mainly caused by an increase in intangible assets by around EUR 3.5 million in comparison with 31 December 2020.
| Liabilities in kEUR | |||
|---|---|---|---|
| 30/06/2021 | 31/12/2020 | Changes | |
| kEUR | kEUR | in % | |
| Equity | 28,268 | 27,288 | 3.59 |
| Non-current liabilities | |||
| Deferred taxes | 4,636 | 4,140 | 11.98 |
| Bonds | 19,414 | 19,337 | 0.40 |
| Liabilities due to banks | 32 | 33 | –3.03 |
| Accounts payable | 10,603 | 10,280 | 3.14 |
| Other liabilities | 3,606 | 3,636 | –0.83 |
| Provisions | 1,450 | 1,240 | 16.94 |
| Current liabilities | |||
| Bonds | 0 | 0 | 0 |
| Accrued taxes | 468 | 284 | 64.88 |
| Liabilities due to banks | 1,085 | 1,067 | 1.69 |
| Accounts payable | 17,420 | 19,872 | –12.34 |
| Other liabilities | 7,636 | 4,545 | 68.01 |
| Deferred income | 73 | 69 | 5.80 |
| Total equity and liabilities | 94,691 | 91,791 | 3.16 |
At EUR 39.7 million (previous year: EUR 38.7 million), non-current liabilities were up by EUR 0.5 million in total, mainly due to the increase in deferred tax liabilities caused by the recognition of lease liabilities in accordance with IFRS 16.
There was a slight increase in short-term liabilities to EUR 26.7 million, compared with EUR 25.8 million in 2020. This figure includes EUR 17.4 million in accounts payable and EUR 7.6 million in other liabilities.
The equity ratio of the JDC Group as at 30 June 2021 was 29.9 percent of the total assets (31 December 2020: 29.7 percent). The Group therefore has a very good equity base.
The statement of cash flows shows the inflows and outflows of cash during the reporting period.
The cash flow from operating activities was up by kEUR 2,061 as at 30 June 2021, from kEUR 2,805 to kEUR 4,866. The main factors here were a reduction in receivables and higher profits. There was a cash flow of kEUR –1,407 from investing activities, which includes the acquisition of a consolidated company. The cash flow from financing activities was kEUR –610, including the repayment of lease liabilities.
Cash and cash equivalents at the end of the financial year amounted to kEUR 14,567.
The cash and cash equivalents were sufficient at all times during the reporting period. Short-term liquidity is ensured by monthly cash flow planning.
| P & L in kEUR | |||
|---|---|---|---|
| 30/06/2021 | 30/06/2020 | Changes | |
| kEUR | kEUR | in % | |
| Revenues | 68,611 | 58,820 | 16.65 |
| Gross margin | 18,853 | 16,880 | 11.69 |
| Gross margin in % | 27.5 | 28.7 | –4.18 |
| Total operational costs | 16,939 | 15,933 | 6.31 |
| EBITDA | 4,343 | 3,134 | 38.58 |
| EBITDA margin in % | 6.3 | 5.3 | 18.87 |
| EBIT | 1,914 | 947 | >100 |
| EBIT margin in % | 2.8 | 1.6 | 75.00 |
| Net profit | 980 | 190 | >100 |
The Group's income position improved in the first half of 2021. At EUR 68.6 million, revenues for the first half were up by EUR 9.8 million, or 16.6 percent (first half of 2020: EUR 58.8 million).
The gross profit increased by around 11.7 percent to EUR 18.9 million. This is mainly due to key account contracts.
Earnings before interest, tax, depreciation and amortisation (EBITDA) went up to EUR 4.3 million (first half of 2020: EUR 3.1 million). Earnings before interest and tax (EBIT) rose to EUR 1.9 million (first half of 2020: EUR 0.9 million).
The consolidated profit after taxes was EUR 1.0 million.
Revenues in the Advisortech segment rose markedly to EUR 56.4 million, compared with EUR 49.6 million in the same period of the previous year. EBITDA was also up, at EUR 4.5 million, compared with EUR 3.7 million in the same period of the prior year. EBIT stood at EUR 2.7 million in 2021 and EUR 2.0 million in 2020. Revenues for the second quarter on its own amounted to EUR 25.8 million (second quarter 2020: EUR 22.4 million). EBITDA was EUR 1.5 million, compared with EUR 1.2 million in the second quarter of 2020. EBIT totalled EUR 0.6 million (EUR 0.4 million in the second quarter of 2020).
Revenues of the Advisory segment were higher than in the same period of the previous year, at EUR 17.3 million, compared with EUR 14.0 million. EBITDA increased to EUR 0.9 million, compared with EUR 0.4 million in 2020. There was also an improvement in EBIT from EUR 0.0 million to EUR 0.4 million. In comparison with the second quarter of 2020, revenues for the second quarter of 2021 grew significantly and stood at EUR 9.0 million. The relevant figure for the second quarter of 2020 was EUR 6.9 million. EBITDA amounted to EUR 0.5 million, compared with EUR 0.2 million in the second quarter of the previous year. Second-quarter EBIT stood at EUR 0.3 million in 2021 and EUR 0.0 million in 2020.
The result of the Holding segment was up overall. Segment revenues were EUR 1.0 million, compared with EUR 0.8 million in the previous year. EBITDA fell to EUR –1.1 million, in comparison with EUR –1.0 million in the first six months of 2020. EBIT was also down, at EUR –1.2 million compared with EUR –1.1 million in the same period of 2020. Revenues for the second quarter on its own were EUR 0.5 million in 2021 and EUR 0.4 million in 2020. Compared with the second quarter of the previous year, EBITDA stood unchanged at EUR –0.5 million. At EUR –0.6 million in 2021, second-quarter EBIT was also unchanged year on year.
The Group's future business performance involves all the opportunities and risks associated with the distribution of financial products and the acquisition, management and disposal of companies. The risk management system of JDC Group AG is aimed at identifying risks early and minimising them by taking appropriate measures. Financial instruments are used only for hedging purposes. In order to identify early any potential problems in the affiliated companies and the companies in which they in turn hold equity investments, key indicators are monitored and evaluated. Monthly, weekly and daily analyses of turnover, revenues and the liquidity position are prepared. Management obtains a daily summary of the turnover and liquidity ratios.
JDC Group AG is controlled by means of a monthly reporting system, which includes the key indicators and pays particular attention to the liquidity position. On top of this, the Management Board is updated on the current level of liquidity on a daily basis.
Relevant regulatory risks are as follows:
Management cannot discern any other risks to the company's existence or growth, and is of the opinion that the risks identified are manageable and do not constitute a threat to the company's continued existence.
Management views the opportunities as follows: Many financial services distribution companies are currently weakened financially by the Covid-19 crisis in particular. As a result, the financial resources of many of our competitors have been exhausted and the pressure to consolidate is increasing. Large market participants, including the JDC Group companies, will benefit from this.
JDC Group took some decisive measures in 2021 to set the course for the coming years. 2021 marked the beginning of JDC's collaboration with Sparkasse Bremen, one of the largest German savings banks. The start-up company Finanzguru is another bancassurance customer using JDC's platform technology. Jung, DMS & Cie. and the Provinzial group are planning a joint venture to support more than a million retail customers of the savings banks. Jung, DMS & Cie. also acquired all the shares of MORGEN & MOR-GEN GmbH.
In the view of the Management Board, this will all result in the continued overall positive performance of JCD Group AG's equity investments, and thus also of JDC Group AG itself, in the financial year 2021.
IMF projects global economic growth of 5.5 percent in 2021. This is based on global access to vaccines and further economic stimulus packages for individual countries.
How long the pandemic continues, and the policies used to deal with it, will determine how quickly the economy can recover. If this phase continues for a long time, therefore, it is very likely that the global economy will not show signs of a recovery until 2022.
It is likely that there will continue to be plenty of liquidity in the market and that this will buoy up the equity and property markets. Due to the level of government debt around the world, which can only be financed by a global increase in the money supply, the inflation likely to result will make tangible assets more attractive than financial assets. That is positive for JDC Group's business.
However, the Covid-19 crisis also poses great risks. The economy is presently still in a recession which, owing to falling company profits, may put the capital market under pressure for a long time. Companies will put investments on hold and consumers will suffer income losses and cut down on spending. Interest rates are also rising again on the bond market, with stock market turbulence as a consequence. It is not possible to predict when the recession will be over, despite the availability of vaccines.
The expectations regarding the business performance of the JDC Group in 2021 are based on the economic assumptions outlined in the Group management report. The ongoing Covid-19 crisis, and the possibility of a resulting recession, with companies putting investments on hold and consumers suffering a loss of income, may have an impact on the financial, assets and income position of the JDC Group. The company plan was developed on the basis of very detailed studies and assumptions that JDC Group AG believes are realistic.
JDC Group's main priority in 2021 will be to achieve a significant, sustained improvement in its operating activities. In 2021 the Group will focus on
We confirm our positive assessment for the remainder of 2021, and are raising the guidance previously published. Based on collaboration agreements already signed, the company now expects revenues to grow to between EUR 140 million and EUR 145 million over 2021 as a whole (compared with the previous guidance of EUR 135 million to EUR 142 million), with EBITDA in excess of EUR 8 million (previously in excess of EUR 7 million).
Wiesbaden, Germany, 11 August 2021
Dr. Sebastian Grabmaier Ralph Konrad Stefan Bachmann
| Notes | 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
01/01/– 30/06/2021 kEUR |
01/01/– 30/06/2020 kEUR |
||
|---|---|---|---|---|---|---|
| 1. | Commission income | [1] | 32,644 | 27,381 | 68,611 | 58,820 |
| 2. | Capitalised services | [2] | 294 | 256 | 578 | 480 |
| 3. | Other operating income | [2] | 21 | 27 | 37 | 148 |
| 4. | Commission expenses | [3] | –23,987 | –19,683 | –50,373 | –42,568 |
| 5. | Personnel expenses | [4] | –5,017 | –4,436 | –9,820 | –8,934 |
| 6. | Depreciation and amortisation of tangible and | [5] | ||||
| intangible assets | –1,281 | –1,083 | –2,429 | –2,187 | ||
| 7. | Other operating expenses | [6] | –2,449 | –2,606 | –4,690 | –4,812 |
| 8. | Other interest and similar income | 1 | 0 | 1 | 11 | |
| 9. | Interest and similar expenses | –372 | –360 | –741 | –738 | |
| 10. Operating profit/loss | –146 | –504 | 1,174 | 220 | ||
| 11. | Income tax expenses | –100 | –3 | –205 | –6 | |
| 12. Other tax expenses | 11 | –2 | 11 | –24 | ||
| 13. Net profit | –235 | –509 | 980 | 190 | ||
| 14. Earnings per share | –0.02 | –0.04 | 0.08 | 0.01 |
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
01/01/– 30/06/2021 kEUR |
01/01/ – 30/06/2020 kEUR |
|
|---|---|---|---|---|
| Profit or loss for the period | –235 | –509 | 980 | 190 |
| Other income | ||||
| In following periods in the profit | ||||
| and loss account to be reclassified into | ||||
| other results | 0 | 0 | 0 | 0 |
| Gains/losses from the revaluation of | ||||
| defined benefit plans | 0 | 0 | 0 | –41 |
| In following periods not in the profit and | ||||
| loss account to be reclassified into other | ||||
| results | 0 | 0 | 0 | –41 |
| Other income after taxes | 0 | 0 | 0 | –41 |
| Total income after taxes | –235 | –509 | 980 | 149 |
| Attributable to: | ||||
| Parent company's shareholders | –235 | –509 | 980 | 149 |
| Advisortech | Advisory | |||
|---|---|---|---|---|
| 30/06/2021 | 30/06/2020 | 30/06/2021 | 30/06/2020 | |
| kEUR | kEUR | kEUR | kEUR | |
| Segment income | ||||
| Commission income | 56,449 | 49,565 | 17,291 | 13,998 |
| of which with other segments | 609 | 621 | 4,520 | 4,122 |
| Total segment income | 56,449 | 49,565 | 17,291 | 13,998 |
| Capitalised services | 578 | 480 | 0 | 0 |
| Other income | 26 | 134 | 11 | 17 |
| Segment expenses | ||||
| Commissions | –42,530 | –36,862 | –12,670 | –10,078 |
| Personnel expenses | –6,518 | –5,916 | –2,019 | –1,893 |
| Depreciation and amortisation | –1,788 | –1,736 | –498 | –415 |
| Other | –3,511 | –3,678 | –1,714 | –1,597 |
| Total segment expenses | –54,347 | –48,192 | –16,901 | –13,983 |
| EBIT | 2,706 | 1,987 | 401 | 32 |
| EBITDA | 4,494 | 3,723 | 899 | 447 |
| Income from investments | 0 | 0 | 0 | 0 |
| Other interest and similar income | 244 | 380 | 0 | 8 |
| Yield on other securities | 0 | 0 | 0 | 0 |
| Depreciation of financial assets | 0 | 0 | 0 | 0 |
| Other interest and similar expenses | –843 | –917 | –288 | –305 |
| Financial result | –599 | –537 | –288 | –297 |
| Segment earnings before tax (EBT) | 2,107 | 1,450 | 113 | –265 |
| Tax expenses | 115 | 45 | –284 | –69 |
| Segment net profit | 2,222 | 1,495 | –171 | –334 |
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
| Holding | Total reportable segments |
Transfer | Total | ||||
|---|---|---|---|---|---|---|---|
| 30/06/2021 kEUR |
30/06/2020 kEUR |
30/06/2021 kEUR |
30/06/2020 kEUR |
30/06/2021 kEUR |
30/06/2020 kEUR |
30/06/2021 kEUR |
30/06/2020 kEUR |
| 1,011 | 773 | 74,751 | 64,336 | –6,140 | –5,516 | 68,611 | 58,820 |
| 1,011 | 773 | 6,140 | 5,516 | –6,140 | –5,516 | 0 | 0 |
| 1,011 | 773 | 74,751 | 64,336 | –6,140 | –5,516 | 68,611 | 58,820 |
| 0 | 0 | 578 | 480 | 0 | 0 | 578 | 480 |
| 0 | 0 | 37 | 151 | 0 | –3 | 37 | 148 |
| 0 | 0 | –55,200 | –46,940 | 4,827 | 4,372 | –50,373 | –42,568 |
| –1,283 | –1,125 | –9,820 | –8,934 | 0 | 0 | –9,820 | –8,934 |
| –143 | –36 | –2,429 | –2,187 | 0 | 0 | –2,429 | –2,187 |
| –779 | –684 | –6,004 | –5,959 | 1,314 | 1,147 | –4,690 | –4,812 |
| –2,205 | –1,845 | –73,453 | –64,020 | 6,141 | 5,519 | –67,312 | –58,501 |
| –1,194 | –1,072 | 1,913 | 947 | 1 | 0 | 1,914 | 947 |
| –1,051 | –1,036 | 4,342 | 3,134 | 1 | 0 | 4,343 | 3,134 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 440 | 408 | 684 | 796 | –683 | –785 | 1 | 11 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| –293 | –301 | –1,424 | –1,523 | 683 | 785 | –741 | –738 |
| 147 | 107 | –740 | –727 | 0 | 0 | –740 | –727 |
| –1,047 | –965 | 1,173 | 220 | 1 | 0 | 1,174 | 220 |
| –25 | –6 | –194 | –30 | 0 | 0 | –194 | –30 |
| –1,072 | –971 | 979 | 190 | 1 | 0 | 980 | 190 |
| Advisortech | Advisory | |||
|---|---|---|---|---|
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
|
| Segment income | ||||
| Commission income | 25,848 | 22,449 | 9,038 | 6,928 |
| of which with other segments | 209 | 296 | 2,033 | 1,701 |
| Total segment income | 25,848 | 22,449 | 9,038 | 6,928 |
| Capitalised services | 294 | 256 | 0 | 0 |
| Other income | 12 | 15 | 9 | 12 |
| Segment expenses | ||||
| Commissions | –19,527 | –16,469 | –6,592 | –5,006 |
| Personnel expenses | –3,274 | –2,920 | –1,099 | –944 |
| Depreciation and amortisation | –956 | –849 | –254 | –204 |
| Other | –1,839 | –2,088 | –824 | –748 |
| Total segment expenses | –25,596 | –22,326 | –8,769 | –6,902 |
| EBIT | 558 | 394 | 278 | 38 |
| EBITDA | 1,514 | 1,243 | 532 | 242 |
| Income from investments | 0 | 0 | 0 | 0 |
| Other interest and similar income | 122 | 180 | 0 | 3 |
| Yield on other securities | 0 | 0 | 0 | 0 |
| Depreciation of financial assets | 0 | 0 | 0 | 0 |
| Other interest and similar expenses | –420 | –435 | –146 | –145 |
| Financial result | –298 | –255 | –146 | –142 |
| Segment earnings before tax (EBT) | 260 | 139 | 132 | –104 |
| Tax expenses | 62 | 29 | –98 | –28 |
| Segment net profit | 322 | 168 | 34 | –132 |
financial statements Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated 23 Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
| Holding | Total reportable segments |
Transfer | Total | ||||
|---|---|---|---|---|---|---|---|
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
| 465 | 404 | 35,351 | 29,781 | –2,707 | –2,400 | 32,644 | 27,381 |
| 465 | 404 | 2,707 | 2,401 | –2,707 | –2,400 | 0 | 0 |
| 465 | 404 | 35,351 | 29,781 | –2,707 | –2,400 | 32,644 | 27,381 |
| 0 | 0 | 294 | 256 | 0 | 0 | 294 | 256 |
| 0 | 0 | 21 | 27 | 0 | 0 | 21 | 27 |
| 0 | 0 | –26,119 | –21,475 | 2,132 | 1,792 | –23,987 | –19,683 |
| –644 | –573 | –5,017 | –4,436 | 0 | 0 | –5,017 | –4,436 |
| –71 | –29 | –1,281 | –1,083 | 0 | 0 | –1,281 | –1,083 |
| –361 | –377 | –3,024 | –3,213 | 575 | 607 | –2,449 | –2,606 |
| –1,076 | –979 | –35,441 | –30,207 | 2,707 | 2,400 | –32,734 | –27,808 |
| –611 | –575 | 225 | –144 | 0 | 0 | 225 | –144 |
| –540 | –546 | 1,506 | 939 | 0 | 0 | 1,506 | 939 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 214 | 198 | 336 | 381 | –335 | –380 | 1 | 0 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| –141 | –160 | –707 | –740 | 335 | 380 | –372 | –360 |
| 73 | 38 | –371 | –359 | 0 | 0 | –371 | –360 |
| –538 | –537 | –146 | –502 | 0 | 0 | –146 | –504 |
| –53 | –6 | –89 | –5 | 0 | 0 | –89 | –5 |
| –591 | –543 | –235 | –506 | 0 | 0 | –235 | –509 |
| Assets | |||
|---|---|---|---|
| Notes | 30/06/2021 kEUR |
31/12/2020 kEUR |
|
| Non-current assets | |||
| Intangible assets | [7] | 51,438 | 47,930 |
| Fixed assets | 5,137 | 5,117 | |
| Financial assets | [8] | 184 | 216 |
| 56,759 | 53,263 | ||
| Deferred taxes | [9] | 3,293 | 3,552 |
| Long-term non-current assets | |||
| Accounts receivable | [10] | 978 | 891 |
| Other assets | [10] | 1,072 | 1,746 |
| 2,050 | 2,637 | ||
| Total non-current assets | 62,102 | 59,452 | |
| Current assets | |||
| Accounts receivable | [11] | 15,205 | 18,364 |
| Other assets | [11] | 1,935 | 1,838 |
| Other securities | 0 | 0 | |
| Cash and cash equivalents | 14,567 | 11,718 | |
| Deferred charges | 882 | 419 | |
| Total current assets | 32,589 | 32,339 | |
| Total assets | 94,691 | 91,791 |
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
| 30/06/2021 | 31/12/2020 | |||
|---|---|---|---|---|
| Notes | kEUR | kEUR | ||
| Equity | ||||
| Subscribed capital | 13,128 | 13,128 | ||
| Own shares | –505 | –505 | ||
| Capital reserves | 19,064 | 19,064 | ||
| Other retained earnings | 423 | 423 | ||
| Other equity components | –3,842 | –4,822 | ||
| Total equity | 28,268 | 27,288 | ||
| Non-current liabilities | ||||
| Deferred taxes | [9] | 4,636 | 4,140 | |
| Bond | 19,414 | 19,337 | ||
| Liabilities due to banks | [12] | 32 | 33 | |
| Accounts payable | [12] | 10,603 | 10,280 | |
| Other liabilities | [12] | 3,606 | 3,636 | |
| Accruals | [13] | 1,450 | 1,240 | |
| Total non-current liabilities | 39,741 | 38,666 | ||
| Current liabilities | ||||
| Accrued taxes | [14] | 468 | 284 | |
| Liabilities due to banks | [14] | 1,085 | 1,067 | |
| Accounts payable | [14] | 17,420 | 19,872 | |
| Other liabilites | [14] | 7,636 | 4,545 | |
| Deferred income | [14] | 73 | 69 | |
| Total current liabilities | 26,682 | 25,837 | ||
| Total equity and liabilities | 94,691 | 91,791 |
| 01/01/–30/06/2021 kEUR |
* 01/01/–30/06/2020 kEUR |
Changes to previous year in kEUR |
|||
|---|---|---|---|---|---|
| 1. | Result for the period | 980 | 190 | 790 | |
| 2. | + | Depreciation and amortisation of fixed assets | 2,429 | 2,187 | 242 |
| 3. | –/+ Other non-cash itemised income/expenses | 241 | 273 | –32 | |
| 4. | –/+ Profit/loss from disposals of fixed assets | 121 | –13 | 134 | |
| 5. | –/+ Profit/loss from disposals of fixed assets | 0 | 0 | 0 | |
| 6. | –/+ Increase/decrease of inventories, accounts receivable | ||||
| as well as other assets | 3,186 | 2,691 | 495 | ||
| 7. | – /+ Decrease/increase of accounts payable | ||||
| as well as other liabilities | –2,091 | –2,523 | 432 | ||
| 8. | = | Cash flow from operating activities | 4,866 | 2,805 | 2,061 |
| 9. | + | Cash receipts from disposals of intangible assets | 0 | 0 | 0 |
| 10. – | Cash payments for investments in intangible assets | –720 | –669 | –51 | |
| 11. | + | Cash receipts from disposals of fixed assets | 0 | 0 | 0 |
| 12. – | Cash payments for investments in fixed assets | –98 | –201 | 103 | |
| 13. + | Cash receipts from disposals of financial assets | 32 | 0 | 32 | |
| 14. – | Cash payments for investments in financial assets | 0 | 0 | 0 | |
| 15. + | Cash receipts from the disposal of consolidated companies | 0 | 0 | 0 | |
| 16. – | Cash payments for the acquisition of consolidated companies | –621 | 0 | –621 | |
| 17. = | Cash flow from investment activities | –1,407 | –870 | –537 | |
| 18. + | Cash receipts/payment to equity | 0 | 0 | 0 | |
| 19. – | Payments from the purchase of own shares | 0 | –1,764 | 1,764 | |
| 20. – | Payments from the redemption of bonds | 0 | –12,292 | 12,292 | |
| 21. + | Cash receipts from borrowings | 0 | 403 | –403 | |
| 22. – | Cash payments from loan redemptions | –18 | –46 | 28 | |
| 23. – | Payments for the repayment part of the rental and leasing obligations | –582 | –449 | –133 | |
| 24. – | Interest paid | –10 | –9 | –1 | |
| 25. = | Cash flow from financing activities | –610 | –14,157 | 13,547 | |
| 26. | Non-cash itemised changes in cash and cash equivalents (total of pos. 8,17, 25) | 2,849 | –12,222 | 15,071 | |
| 27. | Cash and cash equivalents at the beginning of the period | 11,718 | 21,124 | –9,406 | |
| 28. = | Cash and cash equivalents at the end of the period | 14,567 | 8,902 | 5,665 | |
| Breakdown of cash and cash equivalents | 30/06/2021 kEUR |
30/06/2020 kEUR |
Changes to previous kEUR |
||
| Cash and cash in banks | 14,567 | 8,902 | 5,665 | ||
| Current liabilities due to banks | 0 | 0 | 0 | ||
| 14,567 | 8,902 | 5,665 |
*previous year adjusted
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
| Number of shares |
Sub scribed capital kEUR |
Number of own shares |
Capital reserve kEUR |
Other retained earnings kEUR |
Other equity com ponents kEUR |
Shares without domi nating influence |
Total equity kEUR |
|---|---|---|---|---|---|---|---|
| 13,128,461 | 13,128 | –162 | 20,780 | 392 | –3,656 | 0 | 30,482 |
| 190 | 190 | ||||||
| 0 | 0 | ||||||
| 0 | 190 | 190 | |||||
| –306 | –1,458 | –1,764 | |||||
| –30 | –30 | ||||||
| 13,128,461 | 13,128 | –468 | 19,322 | 392 | –3,496 | 0 | 28,878 |
| 13,128,461 | 13,128 | –505 | 19,064 | 423 | –4,822 | 0 | 27,288 |
| 980 | 980 | ||||||
| 0 | |||||||
| 0 | 980 | 980 | |||||
| 0 | |||||||
| 0 | |||||||
| 13,128,461 | 13,128 | –505 | 19,064 | 423 | –3,842 | 0 | 28,268 |
| 1 General information | 29 | |
|---|---|---|
| 1.1 | Declaration of compliance by the | |
| Management Board | 29 | |
| 1.2 | Accounting principles and valuation | |
| methods applied | 30 | |
| 1.3 | Basis of consolidation | 30 |
| 1.4 | Additional disclosures relating to company | |
| acquisitions | 30 |
| 2.1 | Notes to the consolidated income statement 31 | |
|---|---|---|
| 2.1.1 | Commission income [1] | 31 |
| 2.1.2 | Other capitalised services and | |
| other operating income [2] | 31 | |
| 2.1.3 | Commission expenses [3] | 32 |
| 2.1.4 | Personnel expenses [4] | 32 |
| 2.1.5 | Depreciation and Amortisation [5] | 32 |
| 2.1.6 | Operating expenses [6] | 33 |
| 2.2 | Notes to the consolidated balance sheet | 34 |
|---|---|---|
| 2.2.1 | Intangible assets [7] | 34 |
| 2.2.2 | Property, plant and equipment | 34 |
| 2.2.3 | Impairment expenses | 35 |
| 2.2.4 | Financial assets and other | |
| non-current assets [8] | 35 | |
| 2.2.5 | Deferred tax assets and liabilities [9] | 35 |
| 2.2.6 | Non-curent assets [10] | 36 |
| 2.2.7 | Current assets [11] | 36 |
| 2.2.8 | Equity | 37 |
| 2.2.9 | Non-current liabilities [12] | 37 |
| 2.2.10 Accruals [13] | 37 | |
| 2.2.11 Current liabilities [14] | 38 | |
| 3 Significant events after the reporting date | 39 |
|---|---|
| 4 Statement of changes in equity | 39 |
| 5 Cash Flow Statement | 39 |
| 6 Segment reporting | 40 |
JDC Group is a diversified financial services company with the two operating segments Advisortech and Advisory, and the Holding segment.
The company was registered on 6 October 2005 under the name of Aragon Aktiengesellschaft (commercial register number: HRB 22030) in the commercial register at the district court in Wiesbaden, Germany. Shareholders at the general meeting of shareholders on 24 July 2015 decided to change the company's name to JDC Group AG. The change of name became effective on entry in the commercial register on 31 July 2015.
The address of the company's registered office in Wiesbaden, Germany, is:
Söhnleinstrasse 8 65201 Wiesbaden Germany
The shares of JDC Group are admitted to trading on the Open Market (regulated unofficial market) and listed on the Scale® segment of the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse – FWB®).
The interim report for the period from 1 January to 30 June 2021 relates to the parent company and its subsidiaries on a consolidated basis.
The interim report of JDC Group for the first half of 2021 and the figures for the comparative period of 1 January to 30 June 2020 are prepared in compliance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted in the European Union (EU). The term IFRS includes the International Accounting Standards (IAS), which are still applicable. All interpretations of the International Financial Reporting Interpretations Committee (IFRIC), formerly the Standing Interpretations Committee (SIC), as adopted in the EU and which are binding for the financial year 2021, are also applied. The term IFRS is used consistently throughout this report.
The interim report has not been audited.
JDC Group AG is not a parent company within the meaning of Section 315e, paragraph 1 or paragraph 2 of the German Commercial Code (Handelsgesetzbuch – HGB), and is therefore not required to prepare an interim report in compliance with IFRS. JDC Group AG prepares the interim report in compliance with IFRS voluntarily.
The interim financial statements comprise the consolidated statement of income, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated statement of cash flows and the notes to the consolidated financial statements.
The financial statements of JDC Group AG and its subsidiaries are included in the consolidated financial statements in compliance with the recognition and valuation policies applicable throughout the group. The consolidated financial statements are prepared in euro (EUR), the group's functional currency. The company, which is domiciled in Liechtenstein, is accounted for in CHF and converted on the balance sheet date to Euro. All amounts are rounded to the nearest thousand euro (kEUR), unless otherwise stated. The consolidated statement of income is prepared by the total cost accounting principle. The consolidated financial statements were drawn up uniformly for the periods presented here in accordance with the principles of consolidation, accounting and valuation below.
The principles of consolidation and the accounting and valuation methods used for the preparation of the interim report and the comparative figures for the previous period are basically the same as those used in the consolidated financial statements for the period ended on 31 December 2020. A detailed description of the accounting and valuation methods is published in the notes to the annual financial statements of the annual report of 2020, which can be found on the company's website at www.jdcgroup.de.
In accordance with IFRS 10, the interim financial statements include JDC Group AG and all subsidiaries in which JDC Group AG holds the majority of the voting rights or which it has the possibility of controlling by other means.
The subsidiaries have their registered offices in Germany, apart from Jung, DMS & Cie. GmbH; jupoo finance GmbH; FiNUM.Private Finance AG; FiNUM.Private Finance Holding GmbH and JDC B-LAB GmbH, Liechtenstein, all of which are based in Vienna, Austria. The interim financial statements include the parent company and the direct subsidiaries, in addition to the sub-groups Jung, DMS & Cie. Aktiengesellschaft; FiNUM.Private Finance Holding GmbH, based in Wiesbaden, Germany; and FiNUM.Private Finance Holding GmbH, based in Vienna, Austria.
In April 2021 the Group acquired all the shares of benefit consulting GmbH, based in Vienna, Austria, along with the company's customer list. The existing sales and marketing structure was taken over by the Group on acquisition.
The purchase price for benefit consulting GmbH was EUR 4 million, in addition to a profit escalator clause. The purchase price allocation had not yet been finalised at the time this report was prepared. It will be documented in the annual financial statements of JDC Group AG as at 31 December 2021.
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
Income by segment is shown in the segment report.
The revenues mainly comprise initial commission and renewal or portfolio commission on brokerage services for insurance, investment funds and equity investments/closed-end funds, as well as on other services, and can be broken down as follows:
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
01/01/–30/06/2021 kEUR |
01/01/–30/06/2020 kEUR |
|
|---|---|---|---|---|
| Initial commission | ||||
| Insurance products | 16,872 | 13,314 | 35,749 | 29,368 |
| Investment funds | 4,204 | 4,322 | 8,394 | 8,340 |
| Shares/Closed-end funds | 1,626 | 965 | 3,016 | 2,444 |
| Follow-up commission | 5,903 | 5,023 | 11,655 | 10,292 |
| Overrides | 1,403 | 1,316 | 3,917 | 3,553 |
| Services | 890 | 796 | 2,140 | 1,707 |
| Fee-based advisory | 997 | 708 | 1,940 | 1,365 |
| Other income | 749 | 937 | 1,800 | 1,751 |
| Total | 32,644 | 27,381 | 68,611 | 58,820 |
At kEUR 68,611, the total revenue for the period was 16.6 percent higher than in the same period of 2020 (kEUR 58,820).
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
01/01/–30/06/2021 kEUR |
01/01/–30/06/2020 kEUR |
|
|---|---|---|---|---|
| Capitalised services | 294 | 256 | 578 | 480 |
| Reversal of impairments/ | ||||
| income from receivables written off | 0 | 0 | 0 | 0 |
| Income from provision's release | 2 | 9 | 7 | 12 |
| Income from security sales | 0 | 0 | 0 | 0 |
| Income from statute-barred debt | 0 | 0 | 0 | 6 |
| Income from benefits in kind | 10 | 11 | 21 | 22 |
| Other operating income | 9 | 7 | 9 | 108 |
| Total | 315 | 283 | 615 | 628 |
Other own work capitalised, which amounted to kEUR 578 (previous year: kEUR 480) mainly include the development of software solutions for own use (Compass, iCRM/iCRM-Web, allesmeins and the Geld.de portal). For further information see note 2.2.1.1 Concessions and industrial property rights.
This item mainly consists of commissions for independent brokers and sales agents. The commissions were up kEUR 7,805 on the previous year, at kEUR 50,373 (previous year kEUR 42,568) in line with the increase in revenue.
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
01/01/–30/06/2021 kEUR |
01/01/–30/06/2020 kEUR |
|
|---|---|---|---|---|
| Wages and salaries | 4,192 | 3,713 | 8,213 | 7,499 |
| Social security | 825 | 723 | 1,607 | 1,435 |
| Total | 5,017 | 4,436 | 9,820 | 8,934 |
The personnel expenses mainly include salaries, emoluments and other remuneration paid to the Management Board and the staff of JDC Group.
Social security comprises the employer's statutory social security contributions.
The number of people employed by the group during the financial year averaged 278 (full-time equivalents) (previous year: 277).
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
01/01/–30/06/2021 kEUR |
01/01/–30/06/2020 kEUR |
|
|---|---|---|---|---|
| Depreciation and amortization of intangible assets | –915 | –786 | –1,752 | –1,594 |
| Purchased software | –64 | –68 | –111 | –134 |
| Internally developed software | –407 | –361 | –786 | –692 |
| Customer lists | –438 | –351 | –843 | –756 |
| Contract preparation costs | –6 | –6 | –12 | –12 |
| Other intangible assets | 0 | 0 | 0 | 0 |
| Depreciation and amortization of | ||||
| property and equipment | –366 | –297 | –677 | –593 |
| Leasehold improvements | 0 | –3 | 0 | –5 |
| Operating and office equipment | –97 | –60 | –187 | –119 |
| Rights of use rental and leasing | –269 | –234 | –490 | –469 |
| Total | –1,281 | –1,083 | –2,429 | –2,187 |
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
| 2. Quarter 2021 kEUR |
2. Quarter 2020 kEUR |
01/01/–30/06/2021 kEUR |
01/01/–30/06/2020 kEUR |
|
|---|---|---|---|---|
| Marketing costs | 164 | 218 | 354 | 483 |
| Travel costs | 21 | 2 | –25 | 77 |
| External services | 178 | 144 | 359 | 290 |
| IT costs | 926 | 800 | 1,877 | 1,607 |
| Occupancy costs | 139 | 201 | 340 | 390 |
| Vehicle costs | 41 | 46 | 106 | 81 |
| Office supplies | 34 | 43 | 67 | 70 |
| Fees, insurance premiums | 193 | 168 | 343 | 300 |
| Postage, telephone | 74 | 107 | 134 | 161 |
| Write-downs/impairments of receiveables | 56 | 45 | 99 | 60 |
| Legal and consulting costs | 449 | 336 | 685 | 548 |
| Training costs | 20 | 22 | 38 | 39 |
| Human resources | 4 | 0 | 5 | 0 |
| Supervisory board compensation | 23 | 29 | 45 | 58 |
| Non-deductible input tax | 15 | 46 | 26 | 102 |
| Impairment IFRS 9 | 13 | 0 | 13 | 0 |
| Other | 99 | 399 | 224 | 546 |
| Total | 2,449 | 2,606 | 4,690 | 4,812 |
Advertising costs include exhibitions and trade fairs, customer events, printed matter and hospitality. Third-party services comprise the costs of agencies, external employees, stock brokerage services and meetings of shareholders.
Information technology (IT) costs consist of the costs of general IT operations (servers, clients, data centre), software leasing, scanning services and software licences that cannot be capitalised.
Occupancy costs include incidental rental costs, energy supply and cleaning costs. The rental costs are recognised in accordance with IFRS 16 and shown under amortisation of right-of-use assets and under interest expense arising from the compounding of interest on right-of-use assets.
Vehicle costs consist of vehicle fleet expenses. Vehicle leasing is shown under amortisation of right-of-use assets and under interest expense from the compounding of interest on right-of-use assets, in compliance with IFRS 16.
Fees and insurance comprises the expenses for insurance policies, subscriptions to professional associations and fees to the German Federal Financial Supervisory Authority (BaFin) and the Financial Market Authority of Austria (FMA). Legal and consulting costs include expenses relating to legal issues/legal advice, tax advice, financial statements and auditing costs, and general accounting costs.
Due to the existing revenue structure and the non-taxable services it comprises, JDC Group has an input tax deduction rate of approximately 13 percent. This is recalculated every year on the basis of the continual changes in the revenue structure.
Concessions and licences mainly consists of software licences for standard business software (straightline amortisation over three years) and customer lists (amortised over a period of 15 years) with a carrying amount of kEUR 21,769 (31 December 2020: kEUR 20,809).
Self-generated software tools valued at kEUR 578 were capitalised during the financial year (30 June 2020: kEUR 480). These are mainly company-specific software applications (Compass, iCRM/ iCRM-Web, allesmeins and the Geld.de portal) to support the distribution of financial products.
Goodwill arises on the first-time consolidation at the date of the business combination concerned. The breakdown by segment is as follows:
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Advisortech | 21,653 | 21,653 |
| Advisory | 8,009 | 5,461 |
| Holding | 7 | 7 |
| Total | 29,669 | 27,121 |
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Leasehold improvements | 0 | 0 |
| Operating and office equipment | 886 | 914 |
| Rights of use rental and leasing | 4,251 | 4,203 |
| Total | 5,137 | 5,117 |
Tenants' fittings consist of works carried out in the rented properties.
Operating and office equipment mainly consists of office hardware – such as PCs, notebooks and servers – and all office furniture and furnishings.
The right-of-use assets arising from rental agreements and leases include the fair value of rented or leased assets for the exclusive use of the group, which under IFRS 16 have to be capitalised.
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
The goodwill was tested for impairment as at 31 December 2020. The recoverable value of the Advisortech and Advisory cash-generating units is determined by calculating a value in use from forecasts for the cash flow before income tax. These forecasts were made on the basis of detailed budget projections for the group companies for the financial year 2021 approved by Management and the Supervisory Board. For the financial years 2022 to 2023, moderate growth rates (Phase I) are assumed. For subsequent periods, the cash flow was forecast as a perpetuity (Phase II). Given a risk-free base rate of –0.31 percent (2020: –0.35 percent) derived from the yield curve, a market risk premium of 5.81 percent (previous year: 5.85 percent), and applying a beta factor for the comparative investment of 0.88 (previous year: 1.11), the capitalisation rate is 5.5 percent (previous year: 6.0 percent). The capitalisation rate used to determine the present value of the initial cash flows of the perpetuity includes a deduction for growth of 1.0 percent (previous year: 1.0 percent). An additional major factor influencing the free cash flow is the assumptions with regard to growth in revenue and growth in the profits of the operating units.
The increase in the discount rate before taxes to 7.5 percent (up 2 percent) would mean no impairment was necessary for the cash-generating units. The 20 percent decline in the planned EBIT figures in the cash-generating units would not result in any impairment. A significant additional reduction in the planned EBT growth could lead to the carrying amount exceeding the recoverable amount. However, the Management Board believes such a scenario is unlikely, as significant measures to increase the EBT have already been introduced.
30/06/2021 31/12/2020 kEUR kEUR Shares in affiliated companies Investments Securities Total 55 123 6 184 55 123 38 216
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Deferred tax assets | ||
| Tax reimbursement claims from loss carry-forwards | 1,715 | 1,863 |
| Tax reimbursement claims from financial liabilities | 1,578 | 1,689 |
| Total | 3,293 | 3,552 |
| Deferred tax liabilities | ||
| Intangible assets (software) | 3,349 | 2,718 |
| From other recognition differences | 1,287 | 1,422 |
| Total | 4,636 | 4,140 |
The deferred taxes for the German companies were calculated on the basis of the corporate tax rate of 15 percent, plus the solidarity surcharge of 5.5 percent and the municipal trade tax rate for the German city of Wiesbaden of 454.0 percent (combined income tax rate: 31.72 percent). For the Austrian companies, the corporation tax rate of 25 percent applicable since 2005 was used.
The deferred taxes for the German companies were calculated on the basis of the corporate tax rate of 15 percent, plus the solidarity surcharge of 5.5 percent and the municipal trade tax rate for the German city of Wiesbaden of 454.0 percent (combined income tax rate: 31.72 percent). For the Austrian companies, the corporation tax rate of 25 percent applicable since 2005 was used.
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Accounts receivables | 978 | 891 |
| Other assets | 1,393 | 2,067 |
| Impairment from expected losses | –321 | –321 |
| Total | 2,050 | 2,637 |
Accounts receivable mainly relates to commissions receivable from the cancellation reserves.
Other assets mainly consists of receivables from intermediaries.
In accordance with IFRS 9, a risk provision for expected losses of 7% was made for the accounts receivable and other receivables. This reduced the other receivables by kEUR 321 (31 December 2020: kEUR 321).
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Accounts receivable | 15,205 | 18,364 |
| Other assets | ||
| Commission advances | 882 | 419 |
| Prepaid expenses | –107 | –107 |
| Other | 2,042 | 1,945 |
| Total | 18,022 | 20,621 |
Accounts receivable relates mainly to commission receivable from partner companies and broker pool partners for intermediary services.
Other miscellaneous assets are mainly the result of claims for tax refunds and short-term loans, in addition to receivables from intermediaries.
Prepaid expenses relate to advance payments made for promotional events in the following year, insurance, contributions and vehicle tax.
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
The changes in the consolidated equity of JDC Group AG are shown in the statement of changes in equity (see also note 4).
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Bond | 19,414 | 19,337 |
| Liabilities to banks | 32 | 33 |
| Accounts payable | 10,603 | 10,280 |
| Other liabilities | ||
| Liabilities from rental and lease | 3,407 | 3,437 |
| Other | 199 | 199 |
| Total | 33,655 | 33,286 |
The bonds include a corporate bond issued by Jung, DMS & Cie. Pool GmbH in 2019, which is recognised at amortised cost using the effective interest method.
Non-current accounts payable relate to broker commissions withheld until expiry of the cancellation liability. The obligation to pay the broker's commission generally has a residual term of one to five years. The other liabilities mainly consist of the long-term portion of loan liabilities.
Other liabilities comprises the liabilities corresponding to the right-of-use assets recognised for rent and leases under IFRS 16 since it was first adopted in 2019. The long-term portion is reported here.
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Pension provisions | 434 | 434 |
| Provisions for cancellation liability | 986 | 774 |
| Provisions for threatened claims from financial loss | 30 | 32 |
| Total | 1,450 | 1,240 |
The pension obligations comprise commitments taken on by the group's subsidiary Jung, DMS & Cie. Pro GmbH on the acquisition of Assekuranz Herrmann. The amount of the pension provisions is calculated once per year on the basis of an actuarial valuation and recognised accordingly as at the end of the financial year. Details of the changes in pension entitlements can be found in the annual report for 2020.
The provision for cancellation liability shows the portion of the cancellation risk of a sub-segment that is calculated on the basis of an estimate and therefore cannot be allocated to specific staff. Also recognised here is a provision for an impending claim for financial losses.
| 30/06/2021 kEUR |
31/12/2020 kEUR |
|
|---|---|---|
| Pension provisions | 41 | 41 |
| Provisions for taxes | 180 | 49 |
| Provisions for cancellation liability | 247 | 194 |
| Liabilities to banks | 1,085 | 1,067 |
| Accounts payable | 17,420 | 19,872 |
| Other current liabilities | ||
| Rights of use rental and lease | 1,082 | 938 |
| Other | 6,554 | 3,607 |
| Deferred income | 73 | 69 |
| Total | 26,682 | 25,837 |
Accounts payable are settled at their due dates.
Other liabilities comprises the liabilities corresponding to the right-of-use assets recognised for rent and leases under IFRS 16 since it was first adopted in 2019. The short-term portion is reported here.
Transactions with members of the Management Board and Supervisory Board:
| 30/06/2021 kEUR |
30/06/2020 kEUR |
|
|---|---|---|
| Supervisory Board | ||
| Remuneration | 45 | 58 |
| Management Board | ||
| Total remuneration* | 576 | 486 |
* The total remuneration of the Boards of JDC Group AG is disclosed, even when the costs have been borne by subsidiaries.
No significant events occurred after the reporting date.
The development in Group equity as of the reporting date is shown in the statement of changes in equity, which forms part of the interim consolidated financial statements.
The financial position of the group is presented in the statement of cash flows, which forms part of the interim financial statements in accordance with IFRS.
The cash flow from operating activities was kEUR 4,866.
The statement of cash flows shows the changes in the cash and cash equivalents of JDC Group during the financial year through cash flows from operating activities, investing activities and financing activities. Non-cash transactions are added together and shown in the cash flow from operating activities.
The consolidated statement of cash flows shows a breakdown of the cash and cash equivalents. Cash and cash equivalents with maturities of up to three months are added together with short-term current account overdrafts under this item. Cash equivalents are short-term financial investments that can be converted into cash at any time and for which there is a low risk of changes in value.
JDC Group reports on three segments which are managed separately, according to the type of products and services offered, by committees responsible for the segments. Designation of components of the group as operating segments is based mainly on the existence of segment managers who are responsible for the performance of the segments and who report to the top management of JDC Group.
The JDC Group Group is divided into the following segments:
The Advisortech segment comprises all the group's business with independent financial intermediaries. The segment offers all asset classes (investment funds, closed-end funds, insurance products and structured products) from different product companies, including application processing and commission statements, in addition to various other services relating to investment advice for retail customers. Advisers are supported by a variety of software products developed in-house, such as the digital insurance folder allesmeins and iCRM Web.
The Advisory segment comprises the group's activities in relation to advice and distribution to retail customers. As independent financial and investment advisers, we offer our customers a holistic advisory service tailored to every individual situation, covering insurance, investment and financing products.
The Holding segment comprises JDC Group AG.
The valuation principles for JDC Group's segment reporting are based on the IFRS standards used for the consolidated financial statements. JDC Group assesses the performance of the segments according to, among other things, their operating profit/loss (EBITDA and EBIT). Intersegment revenues and advance payments are offset against each other on the basis of market prices.
JDC Group operates mainly in Germany and Austria. Its customer base therefore forms a single geographical segment (the German-speaking area of the European Union).
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
Grünwald Attorney CEO
Mainz Businessman (Dipl.-Kfm.) CFO, CIO
Frankfurt Businessman CDO
Kerpen Independent entrepreneur Chairman
Vienna Independent entrepreneur Deputy Chairman
Wollerau (Schweiz) Managing Director
Wiesbaden Holder of the chair of financial services controlling at the business school Wiesbaden
Köln CEO Canada Life Assurance Europe plc
Köln Director product and sales management Canada Life Assurance Europe plc since 29/06/2021
The remuneration of the Management Board and Supervisory Board is disclosed under ref. 2.3. There is no obligation to disclose the remuneration of individual members of the Management Board in accordance with Section 314 (1) No. 6a Clause 5 ff. of the German Commercial Code (HGB), as JDC Group AG is not a listed joint stock company within the meaning of Section 3 (2) of the German Stock Corporation Act (AktG).
Rheingau-Palais Soehnleinstraße 8 65201 Wiesbaden
Telephone: +49 611 335322-00 Telefax: +49 611 335322-09
[email protected] www.jdcgroup.de
The Interim Report of JDC Group AG is available in German and English. The German version is legally binding. The reports can be downloaded from the company's website: www.jdcgroup.de
We will provide you with additional information about JDC Group AG and its subsidiaries upon request.
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