Quarterly Report • May 10, 2017
Quarterly Report
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1 January – 31 March 2017
Quality leads to success
Hungary
OVB Allfi nanz – simply better
| 01/01/– | 01/01/– | ||||
|---|---|---|---|---|---|
| Key operating figures | Unit | 31/03/2016 | 31/03/2017 | Change | |
| Clients (31/03) | Number | 3.26 million | 3.28 million | +0.7 % | |
| Financial advisors (31/03) | Number | 5,179 | 4,916 | -5.1 % | |
| Total sales commission | Euro million | 57.1 | 58.4 | +2.3 % | |
| Key financial figures | |||||
| Earnings before interest | |||||
| and taxes (EBIT) | Euro million | 3.0 | 3.3 | +11.6 % | |
| EBIT margin* | % | 5.2 | 5.6 | +0.4 %-pts. | |
| Consolidated net income | Euro million | 2.0 | 2.5 | +21.2 % | |
| Earnings per share (undiluted) | Euro | 0.14 | 0.17 | +21.2 % |
*Based on total sales commission
| 01/01/– | 01/01/– | |||
|---|---|---|---|---|
| Central and Eastern Europe | Unit | 31/03/2016 | 31/03/2017 | Change |
| Clients (31/03) | Number | 2.21 million | 2.22 million | +0.3 % |
| Financial advisors (31/03) | Number | 3,132 | 2,875 | -8.2 % |
| Total sales commission | Euro million | 26.0 | 27.9 | +7.5 % |
| Earnings before interest and taxes (EBIT) | Euro million | 1.7 | 2.2 | +32.3 % |
| EBIT-margin* | % | 6.5 | 8.0 | +1.5 %-pts. |
| *Based on total sales commission | ||||
| Germany | ||||
| Clients (31/03) | Number | 639,288 | 628,474 | -1.7 % |
| Financial advisors (31/03) | Number | 1,327 | 1,309 | -1.4 % |
| Total sales commission | Euro million | 16.4 | 15.3 | -6.7 % |
| Earnings before interest and taxes (EBIT) | Euro million | 1.5 | 1.4 | -6.3 % |
| EBIT-margin* | % | 9.0 | 9.0 | ±0 %-pts. |
| *Based on total sales commission | ||||
| Southern and Western Europe | ||||
| Clients (31/03) | Number | 408,994 | 436,741 | +6.8 % |
| Financial advisors (31/03) | Number | 720 | 732 | +1.7 % |
| Total sales commission | Euro million | 14.6 | 15.1 | +3.2 % |
| Earnings before interest and taxes (EBIT) | Euro million | 1.8 | 2.0 | +12.7 % |
| EBIT-margin* | % | 12.0 | 13.1 | +1.1 %-pts. |
*Based on total sales commission
Content Welcome 3 >>> Share performance and investor relations 4 >>> Interim group management
report 5 >>> Interim consolidated financial statements 11 >>> Notes 16
Ladies and gentlemen, shareholders,
the OVB Group has made a good start to the fi nancial year 2017: Total sales commission went up in the fi rst quarter by 2.3 per cent to Euro 58.4 million, the operating profi t was increased signifi cantly by 11.6 per cent to Euro 3.3 million. This profi table growth shows in an expansion of the EBIT margin from 5.2 per cent in the previous year to now 5.6 per cent.
In view of numerous challenges the fi nancial services industry faces in Europe at present, this interim result is a success.
An essential strength of the OVB Group is its broad international positioning over 14 European countries. Despite the enormous demand for private risk protection and retirement provision it cannot be ruled out that clients will continue to act cautiously with respect to long-term investment decisions. However, the long-term business potential in the market of private protection and provision remains unchanged. OVB works with great commitment at further developing this potential for the Company.
Therefore we confi rm our forecast for the full year 2017: We are expecting a slight increase in total sales commission. As OVB will start implementing comprehensive strategic measures in 2017 for further strengthening the Company's future competitiveness, the operating profi t can be expected to be at the prior-year level.
Kind regards
Thomas Hücker COO
Mario Freis CEO
Oskar Heitz CFO
3
Shareholder structure of OVB Holding AG as of 31/03/2017
The German stock market showed a favourable performance in the first months of the year 2017. The reasons for this were an economic upswing on a broad international scale and a positive macroeconomic outlook as well as encouraging corporate news. Increasing political tensions and risks did not slow down this trend. After having closed the year 2016 at a record high of 11,481 points, the DAX, Germany's benchmark index, rose to 12,231 points up to early April 2017 and was around 12,000 points by the middle of the month.
The share of OVB Holding AG closed the year 2016 with a price of Euro 16.20. Up to mid-March 2017 the share price moved sideways at around that level. Then the share price climbed until peaking at Euro 18.99 at the end of March before going down again to Euro 17.685 in mid-April. Only 3.01 per cent of the shares of OVB Holding AG are free float so that the trading volume and thus the significance of the share price are closely limited.
The annual analysts' conference was held on 28 March 2017 in Frankfurt/Main on the occasion of the release of the 2016 financial statements. The Executive Board explained the performance of OVB over the past financial year and OVB's strategy to several financial analysts, institutional investors and bank representatives. Following this presentation, the Executive Board answered the questions asked by analysts and fund managers.
The Annual General Meeting of OVB Holding AG for financial year 2016 will be held on 2 June 2017 in Cologne. Up for election is a dividend increased by Euro 0.10 over the previous year to Euro 0.75, equivalent to a total amount of Euro 10.7 million to be distributed.
| OVB share data | ||
|---|---|---|
| WKN/ ISIN Code | 628656/DE0006286560 | |
| Stock symbol /Reuters /Bloomberg | O4B/O4BG.DE /O4B:GR | |
| Type of shares | No-par ordinary bearer shares | |
| Number of shares | 14,251,314 | |
| Share capital | Euro 14,251,314.00 | |
| Xetra (closing prices) | ||
| End of previous year | Euro 16.20 | (30/12/2016) |
| High | Euro 18.99 | (31/03/2017) |
| Low | Euro 15.705 | (28/02/2017) |
| Last | Euro 17.685 | (18/04/2017) |
| Market capitalisation | Euro 252 million | (18/04/2017) |
Course of business Macroeconomic environment Interim consolidated management report
OVB stands for cross-thematic financial advice based on a long-term approach. The main target group are private households in Europe. OVB's mission statement is: simply better allfinanz solutions! The Company cooperates with more than 100 high-capacity product providers and fulfils its clients' individual needs with competitive products, covering existential risk protection and asset and property protection up to retirement provision, asset generation and wealth management.
The cross-thematic client advisory service for all stages of life is based on the AAS approach (Analysis – Advice – Service). The identification and analysis of the client's financial situation form the basis of counselling. The financial advisor particularly asks for the client's wishes and goals and then creates a tailored solution for the client in consideration of his or her personal financial framework. OVB accompanies its clients over many years. By constant reviews and adjustments of the financial decisions to relevant changes in the clients' needs, the resulting provision concepts are suited to the clients' demand and aligned with their respective situation in life.
The professional training of the agents, the analysis of client demands and the resulting product recommendations are based on the general conditions prevailing in the respective market. The continuous development of these topics is given great emphasis in order to make OVB capable of responding early to future regulatory or qualitative requirements.
OVB is currently active in 14 countries of Europe as a broker of financial products. OVB's 4,916 full-time financial advisors support 3.28 million clients. The Group's broad European positioning stabilises its business performance and opens up growth potential in many respects. OVB's 14 national markets are different in terms of structure, development status and size. OVB has a leading market position in a number of countries. There is still considerable potential for the services provided by OVB in view of a demographic development that is similar in all of OVB's markets and the urgently required relief for public welfare systems.
At the end of March 2017 the OVB Group had altogether 455 employees (previous year: 426 employees) in the holding company, the head offices of the operating subsidiaries and the service companies. Based on efficient structures and processes, they are responsible for the Group's management and administration.
The sale of financial products in Europe keeps facing a challenging environment. Structural problems of some national economies, finding expression in high unemployment rates for example, lead to a strained financial situation of many private households, leaving barely any room for individual financial provision.
A factor of sustained negative impact is the interest rate level, kept deliberately low by the central banks and thus decreasing the interest expense of highly indebted countries but making asset generation for private provision more difficult. Many financial products currently have only a minimum return which is then even consumed entirely or in part by the price increase. However, an almost inscrutable product offering, barely comprehensible conditions for state subsidies and the necessity of a continuous review of financial decisions once made in view of changing needs and life situations increase the demand for cross-thematic personal advice. From OVB's vantage, the market for private provision therefore offers long-term market potential and opportunities for growth despite the currently challenging environment.
Changes in the income situation of private households, the situation in the labour market and the macroeconomic development affect OVB's business performance. Of particular relevance are also changes in the framework that determines personal financial planning such as changes to tax legislation or health and pension reforms.
OVB's segment Central and Eastern Europe comprises the national markets of Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and the Ukraine; here the Group generated 47 per cent of its total sales commission in 2016. The economic trend in these countries continues to be favourable. Economic growth can be expected to come to 3 per cent or more in 2017. The overall economic performance of Ukraine might record growth for the first time in years, too. Growth stimulation primarily originates from private consumption, supported by increasing employment rates and noticeable wage increases. Private households are increasingly able to see to financial provision and risk protection, thus generally accommodating OVB's business expansion in the region. However, regula-
5
6
Macroeconomic environment
| Real GDP Change in % |
Consumer prices Change in % |
Public budget deficit in % of the GDP |
||||
|---|---|---|---|---|---|---|
| 2017e | 2018f | 2017e | 2018f | 2017e | 2018f | |
| Croatia | 3.3 | 2.8 | 1.9 | 1.6 | -1.9 | -2.0 |
| Czech Republic | 2.7 | 2.5 | 2.4 | 1.5 | -0.2 | 0.0 |
| Hungary | 3.2 | 3.4 | 3.3 | 3.0 | -2.5 | -3.0 |
| Poland | 3.3 | 3.0 | 1.9 | 2.2 | -3.0 | -3.2 |
| Romania | 4.2 | 3.5 | 0.9 | 2.9 | -3.6 | -3.8 |
| Slovakia | 3.3 | 4.0 | 1.1 | 2.0 | -2.0 | -2.0 |
| Ukraine | 2.0 | 3.0 | 10.7 | 7.5 | -4.0 | -3.0 |
e = estimated; f = forecast
Source: Raiffeisen RESEARCH, Strategy Austria & CEE, 2nd quarter 2017
tory changes have either been implemented or are the subject of political debate in some countries, potentially affecting the brokerage of financial products in a negative way.
The German market accounted for 28 per cent of OVB's total sales commission in 2016. Germany's economy is continuing its course of modest growth: The economy will probably grow by 1.4 per cent in the current year and by 1.6 per cent in the year 2018. The sound labour market and low inflation support the purchasing power of private households and consumption. This basic trend, beneficial to OVB's business, is opposed by negative effects, however: The persisting low interest rate environment affects the motivation among consumers to take initiative for urgently required savings for retirement. Moreover, further commission cuts must be expected as a consequence of the Life Insurance Reform Act (LVRG).
The national markets of Austria, France, Greece, Italy, Spain and Switzerland form the segment Southern and Western Europe, roughly contributing 25 per cent to the OVB Group's total sales commission in 2016. With the exception of Switzerland, these countries belong to the euro area. For the current year economic growth of 1.9 per cent appears probable in this currency area, a 1.7 per cent gain is expected for 2018. Spain particularly benefits from the structural reforms and austerity measures of the past few years. The economic performance of Greece in 2017 is predicted to show growth for the first time in years. In Italy, however, the economic upswing remains hardly noticeable. Despite this rather mixed macroeconomic picture, OVB manages to achieve excellent business results in some of these countries. This shows that clients are willing to invest in their personal financial provision even in difficult economic situations, provided there are no other adverse general conditions.
| Real GDP Change in % |
Consumer prices Change in % |
Public budget deficit in % of the GDP |
||||
|---|---|---|---|---|---|---|
| 2017e | 2018f | 2017e | 2018f | 2017e | 2018f | |
| Austria | 1.7 | 1.5 | 2.0 | 2.1 | -1.2 | -1.1 |
| France | 1.6 | 1.5 | 1.6 | 1.4 | -2.9 | -3.1 |
| Greece | 1.7 | 1.9 | 0.9 | 1.2 | -1.1 | 0.7 |
| Italy | 0.8 | 0.8 | 1.6 | 1.5 | -2.6 | -2.5 |
| Spain | 2.5 | 1.9 | 2.2 | 1.9 | -3.4 | -3.2 |
| Switzerland | 1.5 | 1.6 | 0.4 | 0.7 | 0.1 | 0.2 |
e = estimated; f = forecast
Source: Raiffeisen RESEARCH, Strategy Global Markets, 2nd quarter 2017
Business performance
7
The OVB Group's total sales commission reached Euro 58.4 million in the period from January to March 2017 altogether. This equals a 2.3 per cent gain over the prioryear amount of Euro 57.1 million. The course of business was affected by unfavourable general conditions in some of the national markets while the majority of the operating subsidiaries reported sound to very good business performances. By the end of March OVB supported 3.28 million clients in 14 European countries (previous year: 3.26 million clients). The total number of financial advisors working for OVB went down by 5.1 per cent from 5,179 sales agents twelve months ago to 4,916 financial advisors as of 31 March 2017. The structure of new business remained largely unchanged in comparison with the prior-year period and remains focused on real assets. Product demand primarily targeted unit-linked provision products at 43.8 per cent of all new contracts (previous year: 47.4 per cent).
Brokerage income in the segment Central and Eastern Europe gained 7.5 per cent to reach Euro 27.9 million in the reporting period (previous year: Euro 26.0 million). Business in the national markets Hungary, Poland, Croatia and Romania showed very satisfying performances. The sales increase achieved in Slovakia was also satisfactory while the business performance in the Czech Republic
remained modest. The number of financial advisors working for OVB dropped from 3,132 as of the prior-year closing date by 8.2 per cent to 2,875 financial advisors as of 31 March 2017. They supported 2.22 million clients (previous year: 2.21 million clients). The majority of the new business was accounted for by unit-linked provision products at 51.6 per cent (previous year: 60.6 per cent). Most of the other product classes expanded their respective share in the new business so that the diversification of products is more balanced now.
Total sales commission generated in the Germany segment decreased by 6.7 per cent to Euro 15.3 million in the reporting period (previous year: Euro 16.4 million), due in part to the effects of the LVRG. The number of clients went down by 1.7 per cent to 628,474 as of the reporting date 31 March 2017. Unit-linked provision products accounted for the lion's share of the new business at 33.0 per cent (previous year: 26.8 per cent), followed by other provision products at 17.5 per cent (previous year: 20.2 per cent) and property, accident and legal expenses insurance at 15.4 per cent (previous year: 14.9 per cent). As of the reporting date 1,309 sales agents worked for OVB (previous year: 1,327 financial advisors).
Total sales commission in the segment Southern and Western Europe gained 3.2 per cent from Euro 14.6 million in the previous year to Euro 15.1 million. Especially the operating subsidiaries in Austria and Switzerland increased their respective brokerage income significantly. The number of supported clients rose by 6.8 per cent to 436,741 clients (previous year: 408,994 clients) and the number of financial advisors gained 1.7 per cent to 732 sales agents (previous year: 720 financial advisors). The clients' interest primarily focused on unit-linked provision products (38.5 per cent of the new business; previous year: 36.9 per cent), state-subsidised provision products (25.5 per cent; previous year: 24.9 per cent) and other provision products (21.6 per cent; previous year: 25.0 per cent).
Profit/Loss
Total sales commission by region Euro million, figures rounded
In the first quarter of 2017 the OVB Group generated total sales commission in the amount of Euro 58.4 million. This equals a 2.3 per cent gain compared to the prior-year sales performance of Euro 57.1 million. The share of commission based on direct contractual relationships between product partners and the sales force amounted to Euro 3.7 million, unchanged from the previous year. Brokerage income reported in the income statement thus reached Euro 54.7 million in the reporting period after Euro 53.4 million in the previous year. Other operating income was up year-over-year from Euro 1.8 million to Euro 2.3 million, primarily based on the reversal of provisions.
Brokerage expenses climbed 2.1 per cent from Euro 35.4 million to Euro 36.2 million. Personnel expense for the Group's employees went up 2.9 per cent to Euro 7.0 million (previous year: Euro 6.8 million). Depreciation and amortisation of Euro 0.9 million remained at a low level
(previous year: Euro 0.8 million). Other operating expenses were also up slightly from Euro 9.2 million to Euro 9.6 million. Among the items to record an increase were IT consulting fees.
In the first quarter of 2017, the OVB Group generated an operating profit (EBIT) of Euro 3.3 million, 11.6 per cent above the prior-year amount of Euro 3.0 million. The Central and Eastern Europe segment contributed Euro 2.2 million to the Group's EBIT, equivalent to a considerable gain of 32.3 per cent over the prior-year contribution of Euro 1.7 million. The operating subsidiaries in Hungary and Poland in particular recorded highly positive earnings performances. The Southern and Western Europe segment increased its operating profit from Euro 1.8 million the previous year by 12.7 per cent to Euro 2.0 million for the period under review. Improvements in earnings were achieved especially in Austria, Italy and Switzerland. Contrary to that, the EBIT of the Germany segment went down slightly from Euro 1.5 million to Euro 1.4 million. The loss incurred by Corporate
8
Profit/Loss Financial position Assets and liabilities Subsequent events Opportunities and risks
Centre and from consolidation grew from Euro 2.0 million to Euro 2.3 million. The Group's EBIT margin based on total sales commission altogether improved from 5.2 per cent to 5.6 per cent.
The financial result for the reporting period remained at Euro 0.1 million year-over-year. Taxes on income remained largely unchanged as well at Euro 0.9 million (previous year: Euro 1.0 million).
The resulting consolidated net income after non-controlling interests for the period from January to March 2017 came to Euro 2.5 million, 21.2 per cent above the prior-year amount of Euro 2.0 million. Earnings per share – based on 14,215,314 shares respectively – increased accordingly from Euro 0.14 to Euro 0.17.
The OVB Group's cash flow from operating activities for the reporting period expanded year-over-year from Euro 3.9 million by Euro 0.9 million to Euro 4.8 million. Apart from the increased consolidated net income, another main contributor to this development was the increase in current liabilities.
The cash flow from investing activities recorded an outflow in the amount of Euro 2.7 million after a cash inflow of roughly the same amount in the year before (previous year: Euro 2.6 million). The main reason for this change of direction in cash flows were payments made in the reporting period for securities and other short-term investments in the amount of Euro 5.3 million (previous year: Euro 0.4 million).
No financing activities are subject to reporting for the first quarter of 2017, just like the prior-year period. Cash and cash equivalents increased significantly as of 31 March year-over-year from Euro 55.3 million to Euro 72.2 million.
Total assets of OVB Holding AG increased from Euro 167.8 million as of the end of 2016 to Euro 172.3 million as of the quarter closing date. Non-current assets of Euro 23.2 million were virtually unchanged in terms of amount and composition (31 December 2016: Euro 23.4 million). Contrary to that, current assets climbed from Euro 144.4 million to Euro 149.1 million, due essentially to an increase in cash and cash equivalents by Euro 2.2 million to Euro 72.2 million (31 December 2016: Euro 69.9 million) and an increase in securities and other investments, also by Euro 2.2 million, to Euro 27.3 million (31 December 2016: Euro 25.2 million).
The Company's equity went up by Euro 2.4 million from Euro 88.3 million to Euro 90.7 million in the reporting period, almost solely accounted for by an increase in retained earnings by Euro 2.5 million to Euro 22.2 million. The equity ratio, a solid 52.6 per cent, remained unchanged.
Non-current liabilities are at an extremely low level at Euro 0.9 million. Current liabilities gained Euro 2.1 million between the two reporting dates under review from Euro 78.6 million to Euro 80.7 million. Material increases were recorded for the items "other provisions" by Euro 1.6 million to Euro 33.5 million (31 December 2016: Euro 32.0 million) and "other liabilities" by Euro 1.0 million to Euro 34.4 million (31 December 2016: Euro 33.4 million). Contrary to that, "trade payables" went down most notably by Euro 0.8 million to Euro 10.2 million (31 December 2016: Euro 11.0 million).
Business transactions or events of relevance to an appraisal of the OVB Group's assets, liabilities, financial position and profit or loss have not occurred since 31 March 2017.
Various business opportunities are open to the companies of the OVB Group while they also face risks of different kinds. The opportunities and risks have not changed materially since the preparation of the 2016 consolidated financial statements. They are described in detail in the Annual Report 2016, in particular in its chapter "Report on opportunities and risks". From today's perspective, going concern risks arise neither from individual risks nor from the OVB Group's overall risk position.
OVB operates in 14 European markets, with each providing its specific legal framework for doing business. Throughout Europe there is a noticeable trend for increasing government regulation of the sale of financial products. An argument commonly brought forward is a necessary strengthening of consumer protection. As OVB sees it, the idea of citizens taking personal responsibility for themselves is falling more and more by the wayside, however. The regulatory projects either implemented, planned or discussed in several countries may imply risks as well as
Opportunities and risks Outlook
opportunities for OVB's business. The OVB Group's broad international positioning in Europe designed to compensate market risks and decline in individual national markets by virtue of the opportunities in other markets as well as the broad client base generally have a balancing effect at group level.
For 47 years now, OVB's business model and business success have been based on the high relevance of private provision, financial protection and asset generation throughout Europe. OVB therefore assumes that the demand for its services and the financial and insurance products brokered by OVB's sales force will hold up. On the one hand, Europe's citizens remain aware of the importance of private provision; on the other hand, the general capability of saving money and the general willingness to do so determine certain limits.
The coincidence of low birth rates in many countries and a generally rising life expectancy is making it difficult to sustain pay-as-you-go social security systems; thus the demand for private provision generally increases. OVB recognises opportunities for deeper market penetration in all of the markets in which the Group already operates; OVB intends to exploit this growth potential consistently. Apart from expanding its business in already developed markets, OVB will move into new promising markets if the general conditions appear supportive. Consolidation within the industry offers additional business opportunities.
From OVB's viewpoint, it has never been more important to take private financial provision measures and receive accompanying advice. Yet the demand for private provision measures is currently blanketed by a number of political, economic and societal factors that have a
negative effect on the urgently needed savings efforts of private households. Particularly noteworthy among those factors are:
The above-mentioned effects interfere with the brokerage of financial products and increase the risk of insufficient provision and old-age poverty of large segments of the population. Thus OVB's financial advisors keep facing the challenge of working against those adverse aspects.
However, OVB is convinced that macroeconomic and societal necessities will result in increased spending on private retirement provision.
The long-term business potential in the market of private provision and financial protection remains unchanged. OVB works with great commitment at further developing this potential for the Company. Excessive and ill-advised regulation might have a negative effect on OVB's growth dynamics. Due to stable to positive business performances in all three segments, we are expecting a slight increase in sales for the Group. OVB will take strategic measures for strengthening future competitiveness in 2017. Therefore the Group's operating profit can be expected to be at prior-year level.
Cologne, 28 April 2017
Mario Freis CEO
Oskar Heitz CFO
Thomas Hücker COO
Consolidated statement of financial position
of OVB Holding AG as of 31 March 2017, prepared in accordance with IFRS
| EUR'000 | 31/03/2017 | 31/12/2016 |
|---|---|---|
| Non-current assets | ||
| Intangible assets | 9,481 | 9,738 |
| Tangible assets | 4,123 | 4,166 |
| Investment property | 0 | 0 |
| Financial assets | 5,215 | 5,223 |
| Deferred tax assets | 4,424 | 4,250 |
| 23,243 | 23,377 | |
| Current assets | ||
| Trade receivables | 29,019 | 29,742 |
| Receivables and other assets | 18,581 | 17,887 |
| Income tax assets | 1,974 | 1,656 |
| Securities and other capital investments | 27,326 | 25,168 |
| Cash and cash equivalents | 72,185 | 69,938 |
| 149,085 | 144,391 | |
| Total assets | 172,328 | 167,768 |
| EUR'000 | 31/03/2017 | 31/12/2016 |
|---|---|---|
| Equity | ||
| Subscribed capital | 14,251 | 14,251 |
| Capital reserve | 39,342 | 39,342 |
| Treasury shares | 0 | 0 |
| Revenue reserves | 13,663 | 13,663 |
| Other reserves | 721 | 738 |
| Non-controlling interests | 527 | 524 |
| Retained earnings | 22,215 | 19,752 |
| 90,719 | 88,270 | |
| Non-current liabilities | ||
| Provisions | 786 | 762 |
| Other liabilities | 133 | 141 |
| Deferred tax liabilities | 0 | 1 |
| 919 | 904 | |
| Current liabilities | ||
| Provisions for taxes | 782 | 998 |
| Other provisions | 33,536 | 31,954 |
| Income tax liabilities | 1,743 | 1,228 |
| Trade payables | 10,213 | 10,978 |
| Other liabilities | 34,416 | 33,436 |
| 80,690 | 78,594 | |
| Total equity and liabilities | 172,328 | 167,768 |
12
Consolidated financial statements
Consolidated income statement
Consolidated statement of comprehensive income
of OVB Holding AG for the period from 1 January to 31 March 2017, prepared in accordance with IFRS
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Brokerage income | 54,745 | 53,377 |
| Other operating income | 2,279 | 1,835 |
| Total income | 57,024 | 55,212 |
| Brokerage expenses | -36,164 | -35,414 |
| Personnel expenses | -7,002 | -6,806 |
| Depreciation and amortisation | -949 | -842 |
| Other operating expenses | -9,615 | -9,198 |
| Operating profit (EBIT) | 3,294 | 2,952 |
| Finance income | 104 | 137 |
| Finance expenses | -26 | -46 |
| Financial result | 78 | 91 |
| Consolidated income before income tax | 3,372 | 3,043 |
| Taxes on income | -906 | -956 |
| Consolidated net income | 2,466 | 2,087 |
| Thereof non-controlling interests | -3 | -54 |
| Consolidated net income after non-controlling interests | 2,463 | 2,033 |
| Basic earnings per share in Euro | 0.17 | 0.14 |
of OVB Holding AG for the period from 1 January to 31 March 2017, prepared in accordance with IFRS
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Consolidated net income | 2,466 | 2,087 |
| Change from revaluation of available-for-sale financial assets outside profit or loss |
-52 | 50 |
| Change in deferred taxes on unrealised gains and losses from capital investments outside profit or loss |
2 | 4 |
| Change in currency translation reserve outside profit or loss | 33 | -24 |
| Other comprehensive income to be reclassified to the income statement | -17 | 30 |
| Total comprehensive income before non-controlling interests | 2,449 | 2,117 |
| Total comprehensive income attributable to non-controlling interests | -3 | -54 |
| Total comprehensive income | 2,446 | 2,063 |
13
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Consolidated income before income tax | 3,372 | 3,043 |
| +/- Depreciation, amortisation and impairment / Appreciation in value and reversal of impairment loss of non-current assets |
949 | 842 |
| - Financial result |
-78 | -91 |
| -/+ Unrealised currency gains/losses |
-101 | 37 |
| +/- Allocation to/reversal of valuation allowances for receivables |
435 | 964 |
| -/+ Increase/decrease in deferred tax assets |
-174 | 62 |
| +/- Increase/decrease in deferred tax liabilities |
-1 | -8 |
| - Other non-cash financial expenses |
50 | -50 |
| +/- Increase/decrease in provisions |
1,390 | -403 |
| +/- Increase/decrease of unrealised gains/losses in equity (net) |
-50 | 54 |
| +/- Result from the disposal of intangible and tangible assets |
-44 | 0 |
| +/- Decrease/increase in trade receivables and other assets |
-725 | -365 |
| +/- Increase/decrease in trade payables |
||
| and other liabilities | 736 | 1,402 |
| - Interest paid |
-26 | -9 |
| - Income tax paid |
-906 | -956 |
| +/- Decrease/increase of available-for-sale assets |
0 | -580 |
| = Cash flow from operating activities | 4,827 | 3,942 |
| +/- Decrease/increase from investment property |
0 | 580 |
| + Payments received from disposal of tangible assets and intangible assets |
135 | 18 |
| + Payments received from disposal of financial assets |
21 | 48 |
| + Payments received for expenditure on securities |
||
| and other short-term capital investments | 3,088 | 2,916 |
| - Payments for expenditure on tangible assets |
-357 | -355 |
| - Payments for expenditure on intangible assets |
-382 | -238 |
| - Payments for expenditure on financial assets |
-13 | -173 |
| - Payments for expenditure on securities and |
||
| other short-term capital investments | -5,296 | -354 |
| + Other finance income |
60 | 39 |
| + Interest received |
44 | 98 |
| = Cash flow from investing activities | -2,700 | 2,579 |
| - Dividends paid |
0 | 0 |
| = Cash flow from financing activities | 0 | 0 |
| Overview: | ||
| Cash flow from operating activities | 4,827 | 3,942 |
| Cash flow from investing activities | -2,700 | 2,579 |
| Cash flow from financing activities | 0 | 0 |
| = Net change in cash and cash equivalents | 2,127 | 6,521 |
| Exchange rate changes in cash and cash equivalents | 133 | -51 |
| + Cash and cash equivalents at end of the prior year | 69,925 | 48,790 |
| = Cash and cash equivalents at the end of the period | 72,185 | 55,260 |
Consolidated statement of changes in equity
of OVB Holding AG as of 31 March 2017, prepared in accordance with IFRS
| Retained profits |
Other | Available-for sale reserve/ |
||||
|---|---|---|---|---|---|---|
| EUR'000 | Subscribed capital |
Capital reserve |
brought forward |
Statutory reserve |
revenue reserves |
revaluation reserve |
| 31/12/2016 | 14,251 | 39,342 | 7,216 | 2,531 | 11,132 | 245 |
| Consolidated profit | 12,536 | |||||
| Treasury shares | ||||||
| Corporate actions | ||||||
| Dividends paid | ||||||
| Change in | ||||||
| available-for-sale reserve | -52 | |||||
| Allocation to other reserves | ||||||
| Change in currency translation reserve |
||||||
| Revaluation effect from | ||||||
| provisions for pensions | ||||||
| Consolidated net income | ||||||
| Balance as at 31/03/2017 | 14,251 | 39,342 | 19,752 | 2,531 | 11,132 | 193 |
| Subscribed capital |
Capital reserve |
Retained profits brought forward |
Statutory reserve |
Other revenue reserves |
Available-for sale reserve/ revaluation reserve |
|---|---|---|---|---|---|
| 14,251 | 39,342 | 7,101 | 2,531 | 11,132 | 448 |
| 9,378 | |||||
| 50 | |||||
| 14,251 | 39,342 | 16,479 | 2,531 | 11,132 | 498 |
Consolidated statement of changes in equity
| Total | Non controlling interests |
Equity of the shareholders of OVB Holding AG |
Total compre hensive income |
Consolidated net income after non-controlling interests |
Total income recognised directly in equity |
Currency translation reserve |
Deferred taxes on unrealised gains/losses |
Reserve from provisions for pensions |
|---|---|---|---|---|---|---|---|---|
| 88,270 | 524 | 87,746 | 12,536 | 933 | 81 | -521 | ||
| -12,536 | ||||||||
| -50 | -50 | -50 | -50 | 2 | ||||
| 33 | 33 | 33 | 33 | 33 | ||||
| 2,466 | 3 | 2,463 | 2,463 | 2,463 | ||||
| 90,719 | 527 | 90,192 | 2,446 | 2,463 | -17 | 966 | 83 | -521 |
| Total | Non controlling interests |
Equity of the shareholders of OVB Holding AG |
Total compre hensive income |
Consolidated net income after non-controlling interests |
Total income recognised directly in equity |
Currency translation reserve |
Deferred taxes on unrealised gains/losses |
Reserve from provisions for pensions |
|---|---|---|---|---|---|---|---|---|
| 85,002 | 370 | 84,632 | 9,378 | 913 | 107 | -571 | ||
| -9,378 | ||||||||
| 54 | 54 | 54 | 54 | 4 | ||||
| -24 | -24 | -24 | -24 | -24 | ||||
| 2,087 | 54 | 2,033 | 2,033 | 2,033 | ||||
| 87,119 | 424 | 86,695 | 2,063 | 2,033 | 30 | 889 | 111 | -571 |
15
Notes
General information Significant events in the interim reporting period
The condensed interim consolidated financial statements for the first quarter of 2017 are released for publication as of 10 May 2017 pursuant to Executive Board resolution passed today.
The parent company of the OVB Group (hereinafter referred to as "OVB") is OVB Holding AG, Cologne, recorded in the Commercial Register maintained at the Local Court (Amtsgericht) of Cologne, Reichenspergerplatz 1, 50670 Cologne, under registration number HRB 34649. OVB Holding AG has its registered office at Heumarkt 1, 50667 Cologne.
Pursuant to IAS 34 "Interim Financial Reporting", the condensed interim consolidated financial statements for the first quarter of 2017 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and released by the International Accounting Standards Board (IASB), and they are meant to be read in conjunction with the consolidated financial statements for the year ended 31 December 2016.
For the preparation of the condensed interim consolidated financial statements, the same accounting policies, measurement and consolidation methods and standards have been adopted as were applied for the preparation of the consolidated financial statements for the year ended 31 December 2016 unless otherwise indicated.
Amended standards and interpretations subject to mandatory application in the EU as of 1 January 2017 (IAS 7 and IAS 12 as well as amendments based on the annual improvements project of the IASB for cycles 2014 to 2016) have been considered for the preparation of these financial statements and had no effect on the interim consolidated financial statements.
All book values of financial assets equal their respective fair value. In accordance with IFRS 13, securities continue to be measured at level 1, i.e. the respective market price. Non-current financial assets are measured at amortised cost according to the effective interest rate method.
The interim consolidated financial statements have been prepared in euro (EUR). All amounts are rounded up or down to EUR thousand (EUR'000) according to standard rounding unless otherwise stated. Due to the presentation in full EUR'000 amounts, rounding differences may occur in individual cases as a result of the addition of stated separate amounts.
Significant reportable events in accordance with IAS 34 (e.g. exceptional business transactions, initiation of restructuring measures or discontinuation of operations) did not occur.
17
| EUR'000 | 31/03/2017 | 31/12/2016 | |
|---|---|---|---|
| Financial assets | L+R | 5,215 | 5,223 |
L+R = Loans and Receivables
Financial assets relate to loans granted to employees and sales agents as well as a bonded loan in the amount of EUR 5,000 thousand, amounting to a book value of EUR 5,009 thousand as of 31 March 2017. Subsequent measurement of the bonded loan is made at amortised cost according to the effective interest rate method.
| EUR'000 | 31/03/2017 | 31/12/2016 | |
|---|---|---|---|
| Securities | AfS | 13,582 | 8,619 |
| Other investments | L+R | 13,744 | 16,549 |
| 27,326 | 25,168 |
AfS = Available-for-Sale L+R = Loans and Receivables
Cash and cash equivalents can be broken down for the consolidated statement of cash flows as follows:
| EUR'000 | 31/03/2017 | 31/03/2016 |
|---|---|---|
| Cash | 34 | 31 |
| Cash equivalents | 72,151 | 55,244 |
| Current liabilities to banks | 0 | -15 |
| 72,185 | 55,260 |
Cash includes the group companies' cash in hand in domestic and foreign currencies translated into euros as of the quarter closing date.
Cash equivalents are assets that can be converted into cash immediately. Cash equivalents include bank balances in domestic and foreign currencies with maturities of three months or less, cheques and stamps. Cash equivalents are measured at face value; foreign currencies are measured in euros as of the closing date.
The subscribed capital (share capital) of OVB Holding AG amounts to EUR 14,251,314.00, unchanged from 31 December 2016. It is divided into 14,251,314 no-par ordinary bearer shares.
Notes to the statement of financial position and the statement of cash flows Notes to the income statement
Distributable amounts relate to the net retained profits of OVB Holding AG as determined in compliance with German commercial law.
In accordance with Section 170 AktG (Stock Corporation Act), the Executive Board of OVB Holding AG proposes the following appropriation of the net retained profits as reported in the financial statements of OVB Holding AG as of 31 December 2016:
| EUR'000 | |
|---|---|
| Distribution to shareholders | 10,688 |
| Profit carry-forward | 7,762 |
| Net retained profits | 18,450 |
OVB Holding AG did not hold any treasury shares as of the reporting date. In the period between the quarter closing date and the preparation of the interim consolidated financial statements, no transactions involving the Company's ordinary shares or options to its ordinary shares took place.
At the Annual General Meeting of OVB Holding AG held on 3 June 2015, the shareholders authorised the Executive Board, subject to the Supervisory Board's consent, to acquire up to 300,000 of the Company's bearer shares in the period up to and including 10 June 2020, in one or several transactions. Shares acquired on the basis of this resolution may also be retired.
Sales are generally recognised at the time the agreed deliveries and performances have been provided and the claim for payment has arisen against the respective product partner. In case of uncertainty with respect to the recognition of sales, the actual cash inflow is regarded. Adequate provisions are made on the basis of historical figures for commission potentially to be refunded to product partners (provisions for cancellation risk). Changes in provisions for cancellation risk are recognised on account of sales.
In the case of commission received in instalments, back payments can usually be expected for subsequent years after conclusion of the contract. Such commission is capitalised at the fair value of the received or claimable amount at the time the claim for payment arises.
The offsetting expense items are recognised on an accrual basis.
All income from product partners is recognised as brokerage income. Apart from commission, this item also includes bonuses and other sales-related benefits paid by product partners as well as changes in provisions for cancellation risk.
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Brokerage income | 54,745 | 53,377 |
Other operating income includes e.g. refunds paid by financial advisors for workshop participation, the use of materials and the lease of IT equipment as well as the reimbursement of costs paid by partner companies and all other operating income not to be recorded as brokerage income.
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Other operating income | 2,279 | 1,835 |
This item includes all direct payments to financial advisors. Current commission encompasses all directly performance-based commission, i.e. new business commission, dynamic commission and policy service commission. Other commission includes all other commission linked to a specific purpose, e.g. other performance-based remuneration.
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Current commission | 32,232 | 31,367 |
| Other commission | 3,932 | 4,047 |
| 36,164 | 35,414 |
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Wages and salaries | 5,803 | 5,647 |
| Social security | 1,127 | 1,059 |
| Pension plan expenses | 72 | 100 |
| 7,002 | 6,806 |
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Amortisation of intangible assets | 624 | 551 |
| Depreciation of property, plant and equipment | 325 | 291 |
| 949 | 842 |
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Sales and marketing expenses | 4,265 | 4,432 |
| Administrative expenses | 4,373 | 4,121 |
| Non-income-based tax | 850 | 522 |
| Miscellaneous operating expenses | 127 | 123 |
| 9,615 | 9,198 |
Notes to the income statement Notes on segment reporting
Actual and deferred tax are determined on the basis of the income tax rates applicable in the respective countries. Actual income taxes were recognised on the basis of the best estimate of the weighted average of the annual income tax rate expected for the full year. Deferred taxes were calculated on the basis of the expected applicable future tax rate.
The main components of the income tax expense are the following items as reported in the consolidated income statement:
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Actual income tax | 1,047 | 895 |
| Deferred income tax | -141 | 61 |
| 906 | 956 |
The calculation of basic / diluted earnings per share is based on the following data:
| EUR'000 | 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|---|---|---|
| Net income for the period after non-controlling interests | ||
| Basis for basic / diluted earnings per share | ||
| (net income for the period attributable to owners of the parent) | 2,463 | 2,033 |
| 01/01/ – 31/03/2017 |
01/01/ – 31/03/2016 |
|
|---|---|---|
| Number of shares | ||
| Weighted average number of shares for the calculation | ||
| of basic / diluted earnings per share | 14,251,314 | 14,251,314 |
| Basic / diluted earnings per share in EUR | 0.17 | 0.14 |
The principal business activity of OVB's operating subsidiaries consists of advising clients in structuring their finances and, in connection with that, in broking various financial products offered by insurance companies, banks, building societies and other enterprises. It is not feasible to divide the advisory services provided to clients into sub-categories according to product types. Throughout the group companies there are no identifiable distinguishable key sub-activities at group level. In particular, it is not possible to present assets and liabilities separately for each brokered product. For this reason the individual companies are each categorised as single-product companies. Segment reporting is therefore provided exclusively on the basis of geographical considerations as internal reporting to group management and corporate governance are also exclusively structured according to these criteria. Thus the broking group companies represent operating segments for the purpose of IFRS 8, aggregated in three reportable segments. All companies not involved in brokerage service operations represent the "Corporate Centre" segment in compliance with the criteria for aggregation pursuant to IFRS 8.12. Compliant with the IFRS, internal reporting to group management equals a condensed presentation of the income statement which is presented more elaborately in segment reporting. The companies' earnings are monitored separately by group management in order to be able to measure and assess profitability. Segment assets and segment liabilities are not included in the presentation of segment reporting pursuant to IFRS 8.23 as they are not part of internal reporting.
of OVB Holding AG for the period from 1 January to 31 March 2017, prepared in accordance with IFRS
| EUR'000 | Central and Eastern Europe |
Germany | Southern and Western Europe |
Corporate Centre |
Consolidation | Consolidated |
|---|---|---|---|---|---|---|
| Segment income | ||||||
| Income from business with | ||||||
| third parties | ||||||
| - Brokerage income | 27,946 | 11,681 | 15,118 | 0 | 0 | 54,745 |
| Other operating income | 329 | 1,018 | 646 | 267 | 19 | 2,279 |
| Income from inter-segment | ||||||
| transactions | 11 | 239 | 0 | 1,920 | -2,170 | 0 |
| Total segment income | 28,286 | 12,938 | 15,764 | 2,187 | -2,151 | 57,024 |
| Segment expenses | ||||||
| Brokerage expense | ||||||
| - Current commission | ||||||
| for sales force | -18,024 | -5,734 | -8,474 | 0 | 0 | -32,232 |
| - Other commission | ||||||
| for sales force | -1,849 | -1,001 | -1,082 | 0 | 0 | -3,932 |
| Personnel expenses | -1,858 | -1,828 | -1,267 | -2,049 | 0 | -7,002 |
| Depreciation/amortisation | -192 | -100 | -93 | -564 | 0 | -949 |
| Other operating | ||||||
| expenses | -4,132 | -2,897 | -2,864 | -1,838 | 2,116 | -9,615 |
| Total segment expenses | -26,055 | -11,560 | -13,780 | -4,451 | 2,116 | -53,730 |
| Operating profit (EBIT) | 2,231 | 1,378 | 1,984 | -2,264 | -35 | 3,294 |
| Interest income | 17 | 30 | 6 | 13 | -5 | 61 |
| Interest expenses | -1 | -10 | -10 | -10 | 5 | -26 |
| Other financial result | 0 | 33 | 10 | 0 | 0 | 43 |
| Earnings before taxes (EBT) | 2,247 | 1,431 | 1,990 | -2,261 | -35 | 3,372 |
| Taxes on income | -407 | 7 | -504 | -2 | 0 | -906 |
| Non-controlling interests | 0 | 0 | 0 | -3 | 0 | -3 |
| Segment result | 1,840 | 1,438 | 1,486 | -2,266 | -35 | 2,463 |
| Additional disclosures | ||||||
| Capital expenditures for intangible | ||||||
| and tangible assets | 190 | 110 | 143 | 296 | 0 | 739 |
| Material non-cash expenses (-) | ||||||
| and income (+) | 47 | -59 | 2 | 0 | 0 | -10 |
| Impairment expenses | -65 | -349 | -348 | -42 | 0 | -804 |
| Reversal of impairment loss | 3 | 113 | 194 | 10 | 0 | 320 |
of OVB Holding AG for the period from 1 January to 31 March 2016, prepared in accordance with IFRS
| EUR'000 | Central and Eastern Europe |
Germany | Southern and Western Europe |
Corporate Centre |
Consolidation | Consolidated |
|---|---|---|---|---|---|---|
| Segment income | ||||||
| Income from business with | ||||||
| third parties | ||||||
| - Brokerage income | 25,994 | 12,736 | 14,647 | 0 | 0 | 53,377 |
| Other operating income | 270 | 777 | 431 | 387 | -30 | 1,835 |
| Income from inter-segment | ||||||
| transactions | 15 | 242 | 1 | 2,040 | -2,298 | 0 |
| Total segment income | 26,279 | 13,755 | 15,079 | 2,427 | -2,328 | 55,212 |
| Segment expenses | ||||||
| Brokerage expense | ||||||
| - Current commission | ||||||
| for sales force | -16,739 | -6,291 | -8,337 | 0 | 0 | -31,367 |
| - Other commission | ||||||
| for sales force | -1,828 | -1,175 | -1,044 | 0 | 0 | -4,047 |
| Personnel expenses | -1,782 | -1,728 | -1,116 | -2,180 | 0 | -6,806 |
| Depreciation/amortisation | -165 | -119 | -81 | -477 | 0 | -842 |
| Other operating | ||||||
| expenses | -4,079 | -2,971 | -2,740 | -1,703 | 2,295 | -9,198 |
| Total segment expenses | -24,593 | -12,284 | -13,318 | -4,360 | 2,295 | -52,260 |
| Operating profit (EBIT) | 1,686 | 1,471 | 1,761 | -1,933 | -33 | 2,952 |
| Interest income | 33 | 32 | 31 | 20 | -18 | 98 |
| Interest expenses | -3 | -18 | -5 | 0 | 17 | -9 |
| Other financial result | 0 | 31 | 0 | -29 | 0 | 2 |
| Earnings before taxes (EBT) | 1,716 | 1,516 | 1,787 | -1,942 | -34 | 3,043 |
| Taxes on income | -343 | -14 | -565 | -34 | 0 | -956 |
| Non-controlling interests | 0 | 0 | 0 | -54 | 0 | -54 |
| Segment result | 1,373 | 1,502 | 1,222 | -2,030 | -34 | 2,033 |
| Additional disclosures | ||||||
| Capital expenditures for intangible | ||||||
| and tangible assets | 120 | 18 | 142 | 313 | 0 | 593 |
| Material non-cash expenses (-) | ||||||
| and income (+) | 90 | 250 | -144 | 0 | 0 | 196 |
| Impairment expenses | -436 | -410 | -334 | -42 | 0 | -1,222 |
| Reversal of impairment loss | 16 | 133 | 36 | 95 | 0 | 280 |
The segment "Central and Eastern Europe" includes: OVB Vermögensberatung A.P.K. Kft., Budapest; OVB Allfinanz a.s., Prague; OVB Allfinanz Slovensko a.s., Bratislava; OVB Allfinanz Polska Społka Finansowa Sp. z o.o., Warsaw; OVB Allfinanz Romania Broker de Asigurare S.R.L., Cluj; OVB Imofinanz S.R.L., Cluj; OVB Allfinanz Croatia d.o.o., Zagreb; OVB Allfinanz Zastupanje d.o.o., Zagreb; and TOB OVB Allfinanz Ukraine, Kiev. Material contributions to the brokerage income of the Central and Eastern Europe segment are generated by OVB Allfinanz a.s., Prague at EUR 9,538 thousand (previous year: EUR 9,768 thousand), OVB Allfinanz Slovensko a.s., Bratislava at EUR 8,767 thousand (previous year: EUR 8,486 thousand) and OVB Vermögensberatung A.P.K. Kft., Budapest at EUR 5,883 thousand (previous year: EUR 4,793 thousand).
The segment "Germany" comprises OVB Vermögensberatung AG, Cologne; Advesto GmbH, Cologne; and Eurenta Holding GmbH, Cologne. Brokerage income in this segment is generated primarily by OVB Vermögensberatung AG, Cologne.
The segment "Southern and Western Europe" represents the following companies: OVB Allfinanzvermittlungs GmbH, Wals/ Salzburg; OVB Vermögensberatung (Schweiz) AG, Cham; OVB-Consulenza Patrimoniale SRL, Verona; OVB Allfinanz España S.A., Madrid; OVB (Hellas) Allfinanz Vermittlungs GmbH & Co. KG, Bankprodukte, Athens; OVB Hellas Allfinanzvermittlungs GmbH, Athens; OVB Conseils en patrimoine France Sàrl., Strasbourg; and Eurenta Hellas Monoprosopi EPE Asfalistiki Praktores, Athens. A material contribution to the brokerage income of the Southern and Western Europe segment is generated by OVB Allfinanz España S.A., Madrid at EUR 5,817 thousand (previous year: EUR 5,791 thousand).
The segment "Corporate Centre" includes: OVB Holding AG, Cologne; Nord-Soft EDV-Unternehmensberatung GmbH, Horst; Nord-Soft Datenservice GmbH, Horst; OVB Informatikai Kft., Budapest; MAC Marketing und Consulting GmbH, Salzburg; EF-CON Insurance Agency GmbH, Vienna; and OVB SW Services s.r.o., Prague. The companies of the Corporate Centre segment are not involved in broking financial products but concerned primarily with providing services to the OVB Group. The range of services particularly comprises management and consulting services, software and IT services as well as marketing services.
The separate segments are presented in segment reporting after elimination of inter-segment interim results and consolidation of expenses and income. Intra-group dividend distributions are not taken into account. Reconciliations of segment items with corresponding group items are made directly in the consolidation column in segment reporting. Recognition, disclosure and measurement of the consolidated items in segment reporting correspond to the items presented in the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity. As far as intra-group allocations are concerned, an appropriate additional overhead charge is levied on the individual cost items incurred.
OVB Holding AG and some of its subsidiaries have given guarantees and assumed liabilities on behalf of financial advisors in the ordinary course of business. The associated risks are recognised in "other provisions" to the extent they give rise to obligations whose values can be reliably estimated. No material changes have occurred in comparison with 31 December 2016.
Some group companies are currently involved in various legal disputes arising from the ordinary course of business, primarily in connection with the settlement of accounts for brokerage services provided by financial advisors.
Management holds the view that adequate provisions have been made for contingent liabilities arising from such guarantees, the assumption of liabilities and legal disputes and that such contingencies will not have any material effect on the Group's assets, liabilities, financial position and profit/loss beyond that.
As of 31 March 2017 the OVB Group has a commercial staff of altogether 455 employees (31 December 2016: 431), 43 of which fill managerial positions (31 December 2016: 43).
Notes
Transactions between the Company and its subsidiaries to be regarded as related parties have been eliminated through consolidation and are not discussed in these notes.
OVB has concluded agreements covering the brokerage of financial products with related parties belonging to the SIGNAL IDUNA Group, the Baloise Group and the Generali Group.
Principal shareholders as of 31 March 2017 are companies of
The SIGNAL IDUNA Group is a horizontally organised group of companies ("Gleichordnungsvertragskonzern"). The group's parent companies are:
As of 31 March 2017, IDUNA Vereinigte Lebensversicherung aG für Handwerk, Handel und Gewerbe, Hamburg held shares in OVB Holding AG carrying 31.67 per cent of the voting rights. As of 31 March 2017, Deutscher Ring Krankenversicherungsverein a.G., Hamburg held shares in OVB Holding AG carrying 21.27 per cent of the voting rights. Based on agreements concluded with companies of the SIGNAL IDUNA Group, sales in the amount of EUR 4,989 thousand (31 March 2016: EUR 2,736 thousand) or rather total sales commission in the amount of EUR 6,296 thousand (31 March 2016: EUR 3,772 thousand) were generated in the first quarter of 2017. Receivables exist in the amount of EUR 1,376 thousand (31 December 2016: EUR 1,806 thousand) and liabilities come to EUR 13 thousand (31 December 2016: EUR 2 thousand).
The item "securities and other investments" includes securities issued by the SIGNAL IDUNA Group in the amount of EUR 6,406 thousand (31 December 2016: EUR 1,455 thousand).
As of 31 March 2017, Basler Beteiligungsholding GmbH, Hamburg held shares in OVB Holding AG carrying 32.57 per cent of the voting rights. This company belongs to the Baloise Group, whose parent company is Bâloise Holding AG, Basel. Based on agreements concluded with the Baloise Group, sales in the amount of EUR 7,737 thousand (31 March 2016: EUR 5,933 thousand) or rather total sales commission in the amount of EUR 9,824 thousand (31 March 2016: EUR 8,024 thousand) were generated in the first quarter of 2017, essentially in the Germany segment. Receivables exist in the amount of EUR 4,634 thousand (31 December 2016: EUR 4,049 thousand).
The item "securities and other investments" includes securities issued by Bâloise Holding AG in the amount of EUR 742 thousand (31 December 2016: EUR 730 thousand).
As of 31 March 2017, Generali Lebensversicherung AG, Munich held shares in OVB Holding AG carrying 11.48 per cent of the voting rights. This company is part of the Generali Group, whose German parent is Generali Deutschland Holding AG, Cologne. Based on agreements concluded with the Generali Group, sales in the amount of EUR 5,272 thousand (31 March 2016: EUR 6,955 thousand) or rather total sales commission in the amount of EUR 5,180 thousand (31 March 2016: EUR 7,262 thousand) were generated in the first quarter of 2017. Receivables exist in the amount of EUR 3,278 thousand (31 December 2016: EUR 3,611 thousand) and liabilities come to EUR 521 thousand (31 December 2016: EUR 147 thousand).
The terms and conditions of brokerage contracts concluded with related parties are comparable to the terms and conditions of contracts OVB has concluded with providers of financial products not regarded as related parties.
Items outstanding as of 31 March 2017 are not secured, do not bear interest and are settled by payment. There are no guarantees relating to receivables from or liabilities to related parties.
Significant reportable events have not occurred since 31 March 2017, the closing date of these interim financial statements.
Members of the Executive Board of OVB Holding AG:
Members of the Supervisory Board of OVB Holding AG:
To the best of our knowledge, and in accordance with the accounting principles applicable to interim financial reporting, the consolidated interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the consolidated interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.
Cologne, 28 April 2017
Mario Freis Oskar Heitz Thomas Hücker
OVB Holding AG
To OVB Holding AG, Cologne
We have reviewed the condensed interim consolidated financial statements – comprising consolidated statement of financial position, consolidated income statement and consolidated statement of comprehensive income, consolidated statement of cash flows, consolidated statement of changes in equity and selected explanatory notes – and the interim consolidated management report of OVB Holding AG, Cologne, which are components of a quarterly financial report pursuant to Section 37w WpHG (Securities Trading Act), for the period from 1 January to 31 March 2017. The preparation of the condensed interim consolidated financial statements in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and of the interim consolidated management report in accordance with the provisions of the WpHG applicable to interim consolidated management reports is the responsibility of the Company's Executive Board. It is our responsibility to issue a report on the condensed interim consolidated financial statements and the interim consolidated management report based on our review.
We have performed our review of the condensed interim consolidated financial statements and the interim consolidated management report in accordance with the German generally accepted standards for the review of financial statements as determined by the Institute of Public Auditors in Germany (IDW) and additionally in compliance with the International Standard on Review Engagements (ISRE 2410), "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". Those standards require the review to be planned and performed in a way that allows us to rule out with reasonable assurance through critical evaluation that the condensed interim consolidated financial statements have not been prepared in all material respects in accordance with the IFRS applicable to interim financial reporting as adopted by the EU and that the interim consolidated management report has not been prepared in all material respects in accordance with the provisions of the WpHG applicable to interim consolidated management reports. A review is limited primarily to inquiries of company personnel and analytical assessments and therefore does not provide the degree of assurance attainable in an audit of financial statements. As we have not performed an audit of financial statements in accordance with our engagement, we cannot give an audit opinion.
No matters have come to our attention on the basis of our review that lead us to presume that the condensed interim consolidated financial statements have not been prepared in all material respects in accordance with the IFRS applicable to interim financial reporting as adopted by the EU or that the interim consolidated management report has not been prepared in all material respects in accordance with the regulations of the WpHG applicable to interim consolidated management reports.
Düsseldorf, 2 May 2017
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft
Wirtschaftsprüfer Wirtschaftsprüfer (Public Auditor) (Public Auditor)
Michael Peters ppa. Thomas Bernhardt
| 10 May 2017 | Results for the first quarter 2017, Conference Call |
|---|---|
| 02 June 2017 | Annual General Meeting, Cologne |
| 14 August 2017 | Results for the second quarter 2017, Conference Call |
| 09 November 2017 | Results for the third quarter 2017, Conference Call |
OVB Holding AG Investor Relations Heumarkt 1 · 50667 Cologne Tel.: +49 (0) 221/20 15 -288 Fax: +49 (0) 221/20 15 -325 E-Mail: [email protected]
OVB Holding AG Heumarkt 1 · 50667 Cologne Tel.: +49 (0) 221/20 15 -0 Fax: +49 (0) 221/20 15 -264 www.ovb.eu
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Our Interim Report is published in German and English
© OVB Holding AG, 2017
Germany OVB Holding AG Cologne www.ovb.eu
OVB Vermögensberatung AG Cologne www.ovb.de
OVB Allfinanzvermittlungs GmbH Wals/Salzburg www.ovb.at
Croatia OVB Allfinanz Croatia d.o.o. Zagreb www.ovb.hr
www.ovb.cz
Entzheim www.ovb.fr
OVB Conseils en patrimoine France Sàrl
Athens www.ovb.gr
OVB Vermögensberatung A.P.K. Kft. Budapest www.ovb.hu
Poland OVB Allfinanz Polska Społka Finansowa Sp. z.o.o. Warsaw www.ovb.pl
Slovakia OVB Allfinanz Slovensko a.s. Bratislava www.ovb.sk
Switzerland OVB Vermögensberatung (Schweiz) AG · Cham www.ovb-ag.ch
Ukraine TOB OVB Allfinanz Ukraine Kiev www.ovb.ua
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