JDC Group AG

Management Reports • May 13, 2024

Letter to shareholders 1. Quarter of 2024

Dr. Sebastian Grabmaier, CEO

JDC GROUP FINANCIAL SERVICES | Annual Report 2007 2

Management Board letter to shareholders

DEAR SHAREHOLDERS, DEAR BUSINESS PARTNERS,

JDC Group AG has made an excellent start to 2024 and was able to significantly increase its revenues in the first quarter of 2024 compared to the same quarter of the previous year. Group revenues grew by 21.6 percent to EUR 53.3 million in the first three months of 2024 compared to the same quarter of the previous year. Quarterly revenues thus also significantly exceeded revenues in the fourth quarter of 2023, which is not only very pleasing against the backdrop of very good year-end business, but also exceeded the 50 million mark for a quarter for the first time.

The first quarter was characterized by the following developments:

The mood on the capital markets continues to brighten compared to the previous year 2023. In addition to the usual strong insurance business, the reinvigorated investment and financing business in particular is contributing to revenue growth, and the figures for the real estate and investment business are also clearly positive again. The JDC Group was able to grow in all customer groups and segments: while the broker business, including the newly acquired partners of the Top Ten Group, increased by a strong 21 percent, the key account business even achieved growth of almost 30 percent. And fortunately, the Advisory segment also grew again for the second quarter in a row, by almost 7 percent.

The key figures for the company's business development are therefore all pleasing: the number of new applications rose by around 13 percent and the number of portfolio transfers initiated even increased by around 58 percent. New business in the life and motor vehicle insurance products developed particularly positively: The motor vehicle insurance product group impressed with an application growth of over 60 percent and life insurance with an application growth of around 25 percent compared to the same quarter of the previous year. The insurance premiums collected thus exceeded EUR 1.2 billion for the first time.

Results for the first quarter of 2024

Group revenues rose by 21.6 percent to EUR 53.3 million in the first quarter of 2024 (Q1 2023: EUR 43.8 million). Compared to the previous quarter, Q4 2023, this represents growth of 9.2 percent (Q4 2023: EUR 48.8 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) improved significantly in the first quarter to kEUR 4,067 (Q1 2023: kEUR 3,185), an increase of 27.7 percent. Earnings before interest and taxes (EBIT) rose even more sharply by 39.6 percent to kEUR 2,523 compared to kEUR 1,808 in the previous year.

Equity amounted to EUR 53.9 million as at March 31, 2024. The equity ratio thus rose to a solid 38.3 percent (December 31, 2023: EUR 52.8 million and 37.2 percent).

Overview in kEUR	Q1/2024 kEUR	Q1/2023 kEUR	Changes in %
Revenues	53,319	43,832	21.6
Advisortech	48,340	39,445	22.6
Advisory	8,713	8,156	6.8
Holding/Consolidation	–3,734	–3,769	0.9
EBITDA	4,067	3,185	27.7
EBIT	2,523	1,808	39.6
EBT	2,252	1,453	55.0
Net profit	2,093	1,433	46.0

THE INDIVIDUAL DIVISIONS DEVELOPED AS FOLLOWS:

Advisortech

The Advisortech division increased its revenue by 22.6 percent to EUR 48.3 million in the first three months of 2024 (Q1 2023: EUR 39.4 million). Compared to the strong previous quarter of Q4 2023, this represents further growth of 13.9 percent (Q4 2023: EUR 42.4 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 27.9 percent to EUR 4.2 million in the first three months of 2024, which is significantly higher than the previous year's figure of EUR 3.3 million.

Earnings before interest and taxes (EBIT) also rose by more than 30 percent to EUR 3.0 million in the first three months of 2024 (Q1 2023: EUR 2.3 million).

5

Marcus Rex, CSO/CMO

Ralph Konrad, CFO, CIO

Advisory

In the Advisory business unit, revenues also increased in the first three months of 2024 compared to the same period of the previous year. They rose by around 7 percent to EUR 8.7 million (Q1 2023: EUR 8.2 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the Advisory segment rose by more than 10 percent to EUR 0.7 million in the first three months (Q1 2023: EUR 0.6 million).

Earnings before interest and taxes (EBIT) rose by around 26 percent to EUR 0.4 million in the first three months of 2024 (Q1 2023: EUR 0.3 million).

Outlook

We confirm our positive assessment and the published guidance for the remainder of 2024:

In 2024, the company expects revenues growth to EUR 205 to 220 million and EBITDA of EUR 14.5 to 16.0 million on the basis of cooperation agreements already concluded.

Thanks to employees and shareholders

Once again, we would like to express our special thanks to our employees and sales partners at JDC Group AG and our subsidiaries, whose commitment and motivation form the basis of our success.

We would also like to thank our shareholders, who believe in our business model and support and endorse the Management Board and Supervisory Board.

We would be delighted if you would continue to accompany us on our journey and remain

Yours sincerely

Dr. Sebastian Grabmaier Ralph Konrad Marcus Rex

Consolidated income statement

		01/01/– 31/03/2024 kEUR	01/01/– 31/03/2023 kEUR
1.	Revenues	53,319	43,832
2.	Capitalised services	331	395
3.	Other operating income	426	223
4.	Commission expenses	–38,486	–31,498
5.	Personnel expenses	–8,095	–6,898
6.	Depreciation and amortisation of tangible and
	intangible assets	–1,544	–1,377
7.	Other operating expenses	–3,429	–2,870
8.	Income from investments	19	0
9.	Share of income from associated companies	67	4
	10. Income from securities	0	–1
11.	Financial income	116	5
	12. Impairment losses on financial instruments	0	0
	13. Financial expenses	–472	–362
	14. Operating profit/loss	2,252	1,453
	15. Income tax expenses	–120	25
	16. Other tax expenses	–39	–45
	17. Net profit	2,093	1,433
	of which attributable to minorities	0	11
	thereof attributable to parent company's shareholders	2,093	1,422
	18. Earnings per share	0.16	0.11

financial statements

Consolidated 9 Consolidated income statement Consolidated cash flow statement Segment reporting Consolidated balance sheet

Consolidated cash flow statement

			01/01/– 31/03/2024 kEUR	01/01/– 31/03/2023 kEUR	Changes compared to previous year kEUR
1.		Result for the period	2,093	1,433	660
2.	+	Depreciation and amortisation of fixed assets	1,544	1,378	166
3.		–/+ Decrease/increase of provisions	–252	59	–311
4.		–/+ Other non-cash itemised income/expenses	3	–97	100
5.		–/+ Profit/loss from disposals of fixed assets	0	0	0
6.		–/+ Increase/decrease of inventories, accounts receivable as well as other assets	2,703	2,666	37
7.		–/+ Decrease/increase of accounts payable as well as other liabilities	–2,092	–1,365	–727
	8. - /+	Income taxes paid/refunded	0	0	0
9.	=	Cash flow from operating activities	3,999	4,074	–75
	10. +	Cash receipts from disposals of intangible assets	0	0	0
11.	–	Cash payments for investments in intangible assets	–389	–734	345
12	+	Cash receipts from disposals of fixed assets	0	0	0
	13. –	Cash payments for investments in intangible assets	–60	–263	203
	14. +	Cash receipts from disposals of financial assets	174	0	174
	15. –	Cash payments for investments in financial assets	–1,296	–6	–1,290
	16. +	Cash receipts from the disposal of consolidated companies	0	0	0
17.	–	Cash payments for the acquisition of consolidated companies	–1,830	–33	–1,797
	18. –	Cash payments for investments funds within the borders of short-term finance disposition	0	0	0
19. +		Cash receipts from investments funds within the borders of short-term finance disposition	0	0	0
20. =		Cash flow from investment activities	–3,401	–1,036	–2,365
21. +		Cash receipts/payment to equity	0	0	0
	22. +	Payments received for stock options issued	77	77	0
23. –		Payments from the purchase of own shares	–1,105	0	–1,105
24. +		Cash receipts from issuance of bonds	0	0	0
25. –		Payments from the redemption of bonds	0	0	0
26. +		Cash receipts from borrowings	0	0	0
27. –		Cash payments from loan redemptions	–3	0	–3
28. –		Payments for the repayment part of the rental and leasing obligations	–490	–361	–129
	29. –	Paid interests	–4	0	–4
	30. =	Cash flow from financing activities	–1,525	–284	–1,241
31.		Changes in cash and cash equivalents (total of pos. 9, 20, 30)	–927	2,754	–3,681
	32. +	Cash and Cash equivalents at the beginning of the period	26,362	16,672	9,690
	33. =	Cash and Cash equivalents at the end of the period	25,435	19,426	6,009
		Breakdown of cash and cash equivalents
		Cash and cash in banks	25,435	19,426	6,009
		Current liabilities due to banks	0	0	0
			25,435	19,426	6,009

Segment reporting

	Advisortech		Advisory
	Q1/2024	Q1/2023	Q1/2024	Q1/2023
	kEUR	kEUR	kEUR	kEUR
Segment income
Revenues	48,340	39,445	8,713	8,156
of which with other segments	526	280	3,237	3,519
Total segment income	48,340	39,445	8,713	8,156
Capitalised services	331	395	0	0
Other income	356	152	81	75
Segment expenses
Commissions	–36,417	–29,685	–5,745	–5,519
Personnel expenses	–5,674	–4,825	–1,527	–1,239
Depreciation and amortisation	–1,184	–1,000	–274	–293
Other	–2,765	–2,220	–861	–872
Total segment expenses	–46,039	–37,730	–8,407	–7,924
EBIT	2,988	2,262	387	307
EBITDA	4,172	3,262	661	600
Income from investments	19	0	0	0
Income from at-equity valuation	67	4	0	0
Other interest and similar income	162	112	16	7
Yield on other securities	0	–1	0	0
Depreciation of financial assets	0	0	0	0
Other interest and similar expenses	–608	–437	–229	–142
Financial result	–360	–322	–214	–136
Segment earnings before tax (EBT)	2,628	1,940	173	171
Tax expenses	–36	40	–125	–44
Segment's net profit (EAT)	2,592	1,980	48	127
Minority interests	0	11	0	0
Segment net profit after minority interests	2,592	1,968	48	127

financial statements

Consolidated 11 Consolidated income statement Consolidated cash flow statement Segment reporting Consolidated balance sheet

Holding		Total reportable segments		Transfer		Total
Q1/2024 kEUR	Q1/2023 kEUR	Q1/2024 kEUR	Q1/2023 kEUR	Q1/2024 kEUR	Q1/2023 kEUR	Q1/2024 kEUR	Q1/2023 kEUR
652	643	57,704	48,244	–4,385	–4,412	53,319	43,832
622	613	4,385	4,412	–4,385	–4,412	0	0
652	643	57,704	48,244	–4,385	–4,412	53,319	43,832
0	0	331	395	0	0	331	395
0	5	438	231	–12	–8	426	223
0	–5	–42,161	–35,210	3,675	3,712	–38,486	–31,498
–894	–833	–8,095	–6,898	0	0	–8,095	–6,898
–86	–85	–1,544	–1,377	0	0	–1,544	–1,377
–525	–486	–4,151	–3,578	722	708	–3,429	–2,870
–1,504	–1,409	–55,951	–47,063	4,397	4,420	–51,554	–42,643
–852	–762	2,523	1,808	0	0	2,523	1,808
–767	–676	4,067	3,186	0	0	4,067	3,185
0	0	19	0	0	0	19	0
0	0	67	4	0	0	67	4
453	238	630	356	–515	–351	116	5
0	0	0	–1	0	0	0	–1
0	0	0	0	0	0	0	0
–150	–135	–987	–713	515	351	–472	–362
303	103	–271	–355	0	0	–271	–355
–550	–659	2,252	1,453	0	0	2,252	1,453
2	–16	–159	–20	0	0	–159	–20
–548	–674	2,093	1,433	0	0	2,093	1,433
0	0	0	11	0	0	0	11
–548	–674	2,093	1,422	0	0	2,093	1,422

Consolidated Balance Sheet

Assets
	31/03/2024	31/12/2023
	kEUR	kEUR
Non-current assets
Intangible assets	71,163	69,177
Fixed assets	8,498	8,717
Financial assets	4,455	3,378
Shares in associated companies	475	787
	84,591	82,059
Deferred taxes	3,225	3,411
Long-term non-current assets
Accounts receivable	1,083	1,055
Other assets	1,018	869
	2,100	1,924
Total non-current assets	89,917	87,394
Current assets
Accounts receivable	21,788	24,453
Receivables from associated companies	382	295
Other receivables and other assets	3,173	3,289
Securities	0	110
Cash and cash equivalents	25,435	26,362
Total current assets	50,779	54,508
Total assets	140,695	141,902

Consolidated financial statements

Consolidated income statement Consolidated cash flow statement Segment reporting Consolidated balance sheet

Liabilities
	31/03/2024 kEUR	31/12/2023 kEUR
Equity
Subscribed capital	13,668	13,668
Own shares	–118	–65
Capital reserves	37,026	38,000
Other retained earnings	234	238
Other equity components	2,939	858
Equity attributable to owners of the parent company	53,750	52,700
Non-controlling interests	105	105
Total equity	53,855	52,805
Non-current liabilities
Deferred taxes	7,029	7,212
Bond	19,385	19,357
Liabilities due to banks	0	0
Accounts payable	14,816	14,528
Other liabilities	6,947	7,330
Accruals	1,213	1,475
Total non-current liabilities	49,391	49,902
Current liabilities
Bonds	0	0
Accrued taxes	264	284
Tax liabilities	273	174
Liabilities due to banks	4	7
Accounts payable	23,795	29,031
Other liabilites	13,114	9,700
Total current liabilities	37,449	39,195
Total equity and liabilities	140,695	141,902

Kontakt

JDC Group AG

Rheingau-Palais Soehnleinstraße 8 65201 Wiesbaden

Telephone: +49 611 335322-00 Telefax: +49 611 335322-09

info@jdcgroup.de www.jdcgroup.de

The letter to shareholders 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.