Interim / Quarterly Report • Aug 22, 2019
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
| P & L in kEUR |
2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
Changes compared to previous |
30/06/2019 kEUR |
30/06/2018 kEUR |
Changes compared to previous |
|---|---|---|---|---|---|---|
| Revenues | 25,702 | 22,010 | 16.8 | 52,513 | 44,474 | 18.1 |
| Gross margin | 7,457 | 6,694 | 11.4 | 15,594 | 14,351 | 8.7 |
| Gross margin in % | 29.0 | 30.4 | –4.6 | 29.7 | 32.3 | –8.0 |
| Total operational costs | 7,479 | 6,861 | 9.0 | 14,813 | 13,698 | 8.1 |
| EBITDA | 838 | 534 | 56.9 | 2,367 | 2,014 | 17.5 |
| EBITDA margin in % | 3.3 | 2.4 | 37.5 | 4.5 | 4.5 | 0.0 |
| EBIT | –22 | –167 | 86.8 | 781 | 653 | 19.6 |
| EBIT margin in % | –0.1 | –0.8 | 87.5 | 1.5 | 1.5 | 0.0 |
| Net profit | –360 | –619 | 41.8 | 145 | –210 | > 100 |
| Number of shares in thousands (end of period) | 13,128 | 11,935 | 10.0 | 13,128 | 11,935 | 10.0 |
| Earnings per share in EUR | –0.03 | –0.05 | 40.0 | 0.01 | –0.02 | > 100 |
| Cashflow/Balance sheet in kEUR |
30/06/2019 kEUR |
31/12/2018 kEUR |
Changes compared to year in % |
|---|---|---|---|
| Cash flow from operating activities | 491 | * 1,066 |
–53.9 |
| Total equity and liabilities | 83,427 | 85,547 | –2.5 |
| Equity | 33,485 | 33,344 | 0.4 |
| Equity ratio in % | 40.1 | 39.0 | 2.8 |
*30/06/2018
Stefan Bachmann CDO
Ralph Konrad CFO, CIO
JDC GROUP FINANCIAL SERVICES | Annual Report 2007 4
Dr. Sebastian Grabmaier CEO
We are happy to be able to report to you that during the first half of 2019 JDC Group AG was once again able to significantly increase revenues and operating profit compared to the previous year.
Revenues increased by roughly 18 percent in the first half of 2019. Earnings before interest, taxes, depreciation and amortisation (EBITDA) also rose by 18 per cent and earnings before interest and taxes (EBIT) rose by around 20 percent compared to the previous year.
JDC Group AG again significantly outperformed the first half of the previous year in terms of revenues and earnings.
Revenues in the first half of the year saw an encouraging rise of 18 percent to 52.5 million Euro (H1 2018: 44.5 million Euro). Quarterly revenues in the second quarter, which is normally a weak quarter in the broker market, rose by around 17 percent to 25.7 million Euro (Q2 2018: 22.0 million Euro) and were therefore atypically only slightly below the level of the first quarter.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by around 18 percent to 2.4 million Euro in the first half of the year (H1 2018: 2.0 million Euro). At kEUR 838, EBITDA for the second quarter was even around 57 percent above the level of the same quarter of the previous year and within plan despite increased personnel costs and IT costs in anticipation of the acquired large projects (Q2 2018: kEUR 534). During the course of the year, we expect to see further growth and additional improvements in income as a result of additional expenditures invested for new key accounts.
Despite slightly negative earnings before interest and taxes (EBIT) in the second quarter (EBIT: kEUR –22 compared to kEUR –167 in the same quarter of the previous year), EBIT rose significantly in the first half to kEUR 781, which corresponds roughly to an increase of 20 percent. (H1 2018: kEUR 653).
At kEUR 206, consolidated earnings before taxes (EBT) were therefore also significantly above the previous year (H1 2018: kEUR 70).
JDC Group AG also developed positively in terms of relevant key financial data: As at 30 June 2019, equity capital stood at 33.5 million Euro. The equity capital ratio therefore stood at 40.1 percent (31 December 2018: 33.3 million Euro and 39.0 percent).
Our individual business segments performed as follows:
The Advisortech segment increased its revenues even more than the entire Group in the first half of 2019 to 44.4 million Euro. It was therefore roughly 22 percent above the same period of the previous year (H1 2018: 36.5 million Euro). In the second quarter, revenues stood at 21.0 million Euro and therefore around 17 percent above the 2nd quarter of 2018 (18.0 million Euro).
Earnings before interest, taxes, depreciation and amortization (EBITDA) came to 3.1 million Euro in the first six months of 2019 and were significantly higher than the previous year's level (H1 2018: 2.6 million Euro). In the second quarter, EBITDA rose to 1.3 million Euro (Q2 2018: 0.8 million Euro).
At 1.8 million Euro, earnings before interest and taxes (EBIT) in the first six months of 2019 were likewise significantly above the previous year (H1 2018: 1.5 million Euro). In the second quarter, EBIT was 0.6 million Euro, as compared to 0.2 million Euro in the same quarter of the previous year.
In the Advisory business segment, revenues in the first six months of 2019 increased by 6.2 percent. Revenues were 12.9 million Euro, as compared to 12.1 million Euro during the same period of the previous year. In the second quarter, revenues also remained above the level of the previous year (6.8 million Euro compared to 6.1 million Euro in Q2 2018).
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the Advisory segment fell slightly to Euro 0.0 million in the first six months of 2019 and in the second quarter (H1 2018: Euro 0.1 million).
Earnings before interest and taxes (EBIT) for the segment thus likewise decreased slightly in the first six months of 2019 to –0.2 million Euro (H1 2018: –0.1 million Euro). In the second quarter, EBIT was –0.2 million Euro, as compared to 0.0 million Euro in the same quarter of the previous year.
Our forecast for the remainder of 2019 is positive.
In the first half of 2019, JDC Group significantly increased revenues and earnings compared to the same period of the previous year. The Advisortech segment was able to grow particularly strongly, due to the key account sales. However, significant parts of this growth will only become apparent from the second half of 2019.
The costs already allocated for the administration of key accounts still influence the Group's profitability, but the economies of scale of the business model can already be identified.
In the coming weeks and months, we will acquire several new key accounts on the basis of our marketleading settlement platform. In doing so, we want to finally establish JDC as the outsourcing partner for large and very large financial intermediaries in Central Europe and over the long term make it the first choice for handling retail client insurance transactions for banks, major brokers, captive brokers and insurance agents.
It is primarily from this segment that we anticipate further significant increases and therefore positive earnings contributions as is typical every year and for the sector.
This is why we are reaffirming our guidance and continue to expect sales of at least 110 million Euro and significantly improved earnings.
Last, but not least, we would again like to offer our heartfelt thanks in particular to the employees and sales partners of both JDC Group AG and our subsidiaries, since our success is based on their commitment and motivation.
We would also like to extend thanks to our shareholders, who continue to have faith in our business model and support and approve the actions taken by our executive and supervisory boards.
We would be very pleased to enjoy your continued support.
Sincerely,
Dr. Sebastian Grabmaier Ralph Konrad Stefan Bachmann
JDC Group AG stands for modern financial advice and intelligent financial technology for advisors and customers. In the "Advisortech" business unit, we provide our customers and advisors with modern advisory and administration technology using the Jung, DMS & Cie. Group. While many sales and distribution partners perceive the technological transformation as a problem and the young fintech companies as the new competitors, we perceive the "technology" factor to be a great opportunity. Solutions from the "Advisortech" business unit will help advisors in the future to take even better care of their customers and generate increased sales as a result. In the "Advisory" segment, we broker financial products to private end customers via independent advisors, brokers and financial distributors using the FiNUM. Group. With over 16,000 connected sales partners we are one of the market leaders in the German-speaking area.
The "Advisortech" business unit provides our clients and consultants with advanced consulting and administration technology through the Jung, DMS & Cie. Group. The JDC Group is involved in pursuing the development of proprietary software solutions. During first half year 2019, in-house efforts in this regard amounted to kEUR 488. Please also refer to the relevant remarks contained in the annex to the consolidated financial statement.
The German economy started the year 2019 with growth. Based on calculations compiled by the Federal Statistical Office, gross domestic product (GDP) for the first quarter of the year in comparison to the fourth quarter of 2018 grew by 0.4 percent. In the second quarter of 2019, GDP was 0.1 percent lower compared to the previous quarter. The decline is due to the lower trade balance. According to the federal government's forecasts, Germany's GDP will grow by 0.5 percent in 2019. DIW forecasts growth of 0.9 percent. It is the lowest level in six and a half years, according to DIW. Uncertainty is particularly caused by the growing concerns about individual European countries, primarily Italy, and the possibility of an escalating trade conflict between the US and the rest of the world. It impairs the investment activity of companies worldwide. In the first half-year, German exports grew slightly, but the trend is moving downwards. However, the uncertain global economic situation has a negative impact on the business development of the JDC Group and its subsidiaries. Households are currently cutting back on spending on investments or life insurance products. If an economic downturn actually occurs, it will result in declining revenues.
The German fund industry witnessed a net inflow of new funds totalling EUR 42 billion in the first half of 2019. Special funds showed high inflows of EUR 38.3 billion. Retail funds received a total of EUR 1.8 billion.
In the middle of the year, the members of the German Investment Funds Association (BVI) managed retail funds with a total volume of EUR 1,053 billion. Open-ended special funds contribute EUR 1.8 billion to the portfolio. At the end of June 2019, the fund industry managed total assets worth EUR 3.2 trillion for its investors. This corresponds to an increase of around 6 percent compared to the previous year.
In 2018, premiums received in the insurance industry showed a slight year-on-year increase. The performance of private health insurance, property insurance and life insurance was responsible for this. Assuming the same conditions, a continuation in this development of approx. 2 percent is expected for 2019.
Premiums received for private health insurance policies are currently showing slightly positive performance. There is currently also a positive development in property insurance contribution income. Premiums received for life insurance are currently showing positive performance again.
Overall, the industry aims to achieve stable or slightly increasing year-on-year premium performance.
The financial services market will continue to be shaped by ongoing uncertainty, volatility, and low interest rates in 2019. The interest loss incurred above all on insurance policies in the current low interest climate will further reduce the net return on insurance products. Moreover, sales of investment and life insurance products may decrease compared to the previous year.
JDC Group AG competes with different companies in its individual business segments.
In its Advisortech segment, the JDC Group AG sells via its subsidiaries of Jung, DMS & Cie. Aktiengesellschaft (JDC) products such as investment funds, closed funds, structured products, insurances, and financing products to end customers (B2B).
1) Unless indicated otherwise, all data referred to in the following description of the investment product market was taken from the BVI press release on 13 August 2019.
2) Unless indicated otherwise, all data referred to in the following description of the insurance market was taken from the website of the Gesamtverband der deutschen Versicherungswirtschaft e.V. (GDV).
As a broker pool, JDC is in competition with all companies brokering the aforementioned financial products via independent brokers to downstream brokers or end customers. These include broker networks/pools, such as Fonds Finanz Maklerservice GmbH and BCA AG, as well as commercial banks, savings banks, cooperative banks, and financial sales companies.
Based on the JDC Group's assessment, market barriers to entry are now very high in the broker pool business. Due to past developments, there are large numbers of brokerages, especially broker networks/ pools, that are characterized by a widely varying sizes and degrees of professionalism. Having said this, the broker pools market has nevertheless seen substantial consolidation in recent years. During this period, JDC has grown and acquired smaller competitors leaving the market and/or continually integrated their customers.
In its Advisory segment, JDC Group AG offers advice on and brokers financial products to end customers (B2C) via its subsidiaries FiNUM.Private Finance Deutschland and FiNUM.Private Finance Österreich. In general, all companies are in competition with numerous market players, i.e. alongside financial sales operations and standalone brokers the companies also compete with exclusivity-bound organizations at insurers and banks, as well as with direct sales, such as internet-based operations. Based on the assessment of JDC Group AG, the companies' main competitors can be identified by reference to the different business models and target groups as follows:
FiNUM.Private Finance Deutschland and FiNUM.Private Finance Österreich focus on advising sophisticated private customers (the so-called "mass affluent market") in Germany and Austria. The business mix consists almost equally of wealth accumulation and wealth protection (insurance). The main competitors are thus commercial and private banks, as well as financial advisory companies focusing on sophisticated customers, such as MLP AG, Horbach Wirtschaftsberatung AG as well as private banking units of commercial banks and saving banks).
Owing to its strength in sales, increasing market relevance and reliability for product initiators from both the insurance and investment sectors, JDC Group AG has become an increasingly attractive partner.
Meanwhile, JDC Group AG is also an institutional partner for financial product distributors and/or financial product brokers that are looking for a strong partner for their back offices in dealing with a rapidly changing regulatory environment.
The positive performance results primarily from an increase in sales and revenues in the Advisortech segment. The outsourcing arranged with Albatros Versicherungsdienste, as well as other acquired key accounts, are providing a distinct increase in sales. Increased personnel costs and material expenses in anticipation of additionally acquired large projects had a slight negative impact on the result. However, a clearly positive earnings trend can be determined overall. In the second half-year, we will be able to announce additional large products. With consistent costs, this will lead to higher profitability.
For further details, we refer to the following statements on the status of the JDC Group.
| 30/06/2019 kEUR |
31/12/2018 kEUR |
Changes in % |
|
|---|---|---|---|
| Intangible assets | 50,602 | 46,136 | 9.68 |
| Fixed assets | 705 | 759 | –7.11 |
| Financial assets | 186 | 148 | 25.68 |
| Deferred taxes | 2,601 | 2,700 | –3.67 |
| Long-term non-current assets | |||
| Accounts receivable | 824 | 1,068 | –22.85 |
| Other assets | 2,048 | 2,257 | –9.26 |
| Current assets | |||
| Accounts receivable | 15,447 | 16,657 | –7.26 |
| Other assets | 4,936 | 3,759 | 31.31 |
| Cash and cash equivalents | 5,522 | 11,801 | –53.21 |
| Deferred charges | 556 | 262 | >100 |
| Total assets | 83,427 | 85,547 | –2.48 |
Of the Group's non-current assets, amounting to EUR 57.0 million as of 30 June 2019 (previous year: EUR 53.1 million), EUR 50.6 million (previous year: EUR 46.1 million) are comprised of intangible assets. The increase results from the acquisition of equity investments in the Advisortech segment.
Current assets fell to EUR 26.5 million (previous year) EUR 32.5 million). The main reason is the reduction in short-term receivables and deposits with banks. Bank deposits fell by EUR 6.3 million to EUR 5.5 million.
The balance sheet total decreased to EUR 83.4 million, compared to EUR 85.5 million in 2018. This essentially results from a reduction of the credit balance by around EUR 6.3 million and a rise in intangible assets by EUR 4.5 million, compared to 31 December 2018.
Overall, at EUR 31.4 million, the long-term debt capital has increased slightly (previous year: EUR 27.0 million). Current borrowed capital fell to EUR 18.5 million as compared with EUR 25.2 million in the previous year. This includes EUR 14.5 million of accounts payable trade and EUR 3.7 million of other liabilities.
The consolidated JDC Group had an equity ratio of 40.1 percent of total assets as of 30 June 2019 (31 December 2018: 39.0 percent) of the balance sheet total. The consolidated JDC Group thus continues to benefit from very strong equity resources.
| Liabilities in kEUR | |||
|---|---|---|---|
| 30/06/2019 | 31/12/2018 | Changes | |
| kEUR | kEUR | in % | |
| Equity | 33,485 | 33,344 | 0.42 |
| Non-current liabilities | |||
| Deferred taxes | 3,145 | 1,665 | 88.89 |
| Bonds | 14,862 | 14,813 | 0.33 |
| Liabilities due to banks | 2,548 | 107 | >100 |
| Accounts payable | 8,993 | 8,810 | 2.08 |
| Other liabilities | 184 | 184 | 0.00 |
| Provisions | 1,704 | 1,455 | 17.11 |
| Current liabilities | |||
| Accrued taxes | 137 | 334 | –58.98 |
| Liabilities due to banks | 92 | 2,584 | –96.44 |
| Accounts payable | 14,527 | 17,508 | –17.03 |
| Other liabilities | 3,687 | 4,729 | –22.03 |
| Deferred income | 63 | 14 | >100 |
| Total equity and liabilities | 83,427 | 85,547 | –2.48 |
The cash flow statement records the evolution of cash flow within the reporting period in the form of cash inflows and outflows.
Cash flow from ongoing business activity fell by kEUR 575, from kEUR 1,066 to kEUR 491, as of 30 June 2019. This mainly results from the reduction of liabilities.
Cash flow from investment activity is negative at kEUR –4,989. This is exclusively comprised of payments for investments in consolidated companies.
The financing activity results in a negative cashflow of kEUR –1,782 , which essentially results from scheduled principal repayments and interest payments.
Cash and cash equivalents amounted to kEUR 5,522.
The Group's financial resources were adequate during the year under report. The company safeguards is short-term liquidity by working with monthly liquidity planning.
| P & L in kEUR | |||
|---|---|---|---|
| 30/06/2019 | 30/06/2018 | Changes | |
| kEUR | kEUR | in % | |
| Revenues | 52,513 | 44,474 | 18.08 |
| Gross margin | 15,594 | 14,351 | 8.66 |
| Gross margin in % | 29.7 | 32.3 | –8.05 |
| Total operational costs | 14,813 | 13,698 | 8.14 |
| EBITDA | 2,367 | 2,014 | 17.53 |
| EBITDA margin in % | 4.5 | 4.5 | 0.00 |
| EBIT | 781 | 653 | 19.60 |
| EBIT margin in % | 1.5 | 1.5 | 0.00 |
| Net profit | 145 | –210 | >100 |
The Group's profit situation improved in the first half of 2019. Half-year sales increased by EUR 8.0 million, or 18.1 percent, to EUR 52.5 million (H1 2018: EUR 44.5 million).
Gross profit increased by around 9 percent to EUR 15.6 million. This is primarily attributable to the key account contracts.
EBITDA (earnings before interest, taxes, depreciation and amortisation) rose slightly by 18 percent to EUR 2.4 million (H1 2018: EUR 2.0 million). EBIT also grew to EUR 0.8 million (H1 2018: EUR 0.7 million).
Earnings after tax improved to EUR 0.1 million, compared to EUR –0.2 million in the previous year.
Revenues in the Advisortech segment grew significantly to EUR 44.4 million, compared to EUR 36.5 million in the previous year. At EUR 3.1 million, the EBITDA also increased significantly, after EUR 2.6 million in the same period of the previous year. EBIT stood at EUR 1.8 million, compared to EUR 1.5 million in the previous year. In the second quarter, sales amounted to EUR 21.0 million (Q2 2018: EUR 18.0 million). EBITDA amounts to EUR 1.3 million after EUR 0.8 million in the second quarter of the previous year. EBIT is at EUR 0.6 million (Q2 2018: EUR 0.2 million).
Segment revenues performed positively, reaching EUR 12.9 million, as compared with EUR 12.1 million in the same period of the previous year. EBITDA fell from EUR 0.1 million in the same period of the previous year to EUR 0.0 million. EBIT also fell from EUR –0.1 million to EUR –0.2 million. In the second quarter, sales rose to EUR 6.8 million (Q2 2018: EUR 6.1 million). EBITDA amounts to EUR 0.0 million after EUR 0.1 million in the second quarter of the previous year. EBIT is at EUR -0.2 million (Q2 2018: EUR 0.0 million).
The earnings in the Holding segment remained relatively constant. Segment revenues amount to EUR 0.9 million as compared to EUR 1.0 million in the previous year. EBITDA fell slightly to EUR –0.8 million as compared to EUR –0.7 million in the first half of 2018. EBIT also fell to EUR –0.8 million as compared to EUR –0.7 million in the previous year. In the second quarter, revenues are at EUR 0.5 million (Q2 2018: EUR 0.5 million). EBITDA amounts to EUR –0.4 million after EUR –0.4 million in the second quarter of the previous year. EBIT is at EUR –0.4 million (Q2 2018: EUR –0.4 million).
The future business performance of our company involves all opportunities and risks associated with the sale of financial products and the acquisition, management and sale of companies. The risk management system at JDC Group AG is structured to facilitate the early detection of risks and the derivation of suitable measures to minimize such risks. Financial instruments are exclusively used for hedging purposes. In order to identify possible problems in the affiliated companies and their investments at an early stage, the most important key figures are collected and evaluated on a monthly basis.
JDC Group AG is managed by means of a monthly reporting system, which includes the most important key figures and takes particular account of the liquidity situation. Furthermore, the Management Board is kept informed of the current liquidity situation on a daily basis.
Relevant company-related risks are as follows:
Relevant market-related risks are as follows:
Relevant regulatory risks are as follows:
The Management Board 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 Group's continued existence.
The Management Board sees the following opportunities: Currently, many financial services providers are in a financially weakened position. Along with poor sales in recent years, regulatory requirements have significantly increased. As a result, the financial resources of many competitors are exhausted and the pressure to consolidate has increased – which is to the benefit of large market participants, including JDC Group companies.
In 2019, the JDC Group made some important changes that will have a decisive effect in the coming years. In 2019, exclusive cooperation agreements were concluded with RheinLand Versicherungs AG, Sparda-Bank Baden-Württemberg as well as Bavaria Wirtschaftsagentur GmbH. Moreover, Jung, DMS & Cie. took control of the investment pool KOMM Invest GmbH in 2019.
The Management Board believes all of these developments will produce positive results for the JDC Group AG's investments and therefore for the JDC Group AG itself in fiscal year 2019.
According to IMF forecasts, global economic growth should only reach 3.3 percent in 2019, compared to 3.6 percent in 2018.
Customs increases and trade conflicts are cited as the most significant declines in growth. Worsening financing conditions result from a stricter monetary policy. The IMF growth forecast amounts to 0.7 percent for the 2019 financial year, after being corrected downwards. The reasons for this, amongst others, are the punitive tariff duties imposed on one another by the US and China, Brexit and tensions in the Gulf.
According to the IMF growth forecast, the economy in the eurozone will grow unchanged by 1.3 percent in 2019. According to the Fund, it should be 1.6 percent again for 2020.
In May, the industry orders plummeted by 8.6 percent in comparison to the previous year. Production has also been weakening for months. Because of this and the trade war between the US and China, several experts are warning of a recession in export-dependent Germany.
According to information from December 2018, the ECB purchase programme should come to an end, as the rate of inflation was higher than economic growth. In the current year, with a very volatile market, the ECB has already indicated that it will not diverge from the path of cheap liquidity. It remains to be seen how the institution will conduct itself in an upcoming recession.
Expectations with regard to the performance of the JDC Group for 2019 are based on the macroeconomic assumptions presented in the Group Management Report. The expansion of political crises, not least owing to continued protectionist trade policies of the United States as well as an unregulated Brexit, can have a significant impact on the financial, asset and earnings position of the JDC Group. Corporate planning occurred on the basis of detailed surveys and assumptions that the JDC Group AG views as realistic.
Clear and sustainable improvement in business operations will be paramount for the JDC Group in 2019. In 2019, the Group will focus on
Specifically, we expect Group revenue in 2019 to be around 15 percent higher than in 2018, that absolute gross profit will rise and that the Group will achieve an EBITDA significantly above that of the previous year. In all, the Management Board is expecting positive business performance by the Group as a whole.
Wiesbaden, August 22, 2019
Dr. Sebastian Grabmaier Ralph Konrad Stefan Bachmann
| Notes | 2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
01/01/– 30/06/2019 kEUR |
01/01/– 30/06/2018 kEUR |
||
|---|---|---|---|---|---|---|
| 1. | Commission income | [1] | 25,702 | 22,010 | 52,513 | 44,474 |
| 2. | Capitalised services | [2] | 246 | 150 | 488 | 338 |
| 3. | Other operating income | [2] | 74 | 69 | 99 | 169 |
| 4. | Commission expenses | [3] | –18,565 | –15,535 | –37,506 | –30,630 |
| 5. | Personnel expenses | [4] | –4,133 | –3,771 | –8,369 | –7,633 |
| 6. | Depreciation and amortisation of tangible and | [5] | ||||
| intangible assets | –860 | –701 | –1,586 | –1,361 | ||
| 7. | Other operating expenses | [6] | –2,486 | –2,389 | –4,858 | –4,704 |
| 8. | Other interest and similar income | 1 | 1 | 2 | 4 | |
| 9. | Interest and similar expenses | –284 | –326 | –578 | –587 | |
| 10. Operating profit/loss | –305 | –492 | 206 | 70 | ||
| 11. | Income tax expenses | –49 | –126 | –54 | –265 | |
| 12. Other tax expenses | –6 | –1 | –7 | –15 | ||
| 13. Net profit | –360 | –619 | 145 | –210 | ||
| 14. Earnings per share | –0.03 | –0.05 | 0.01 | –0.02 |
Consolidated financial statements
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 2019 kEUR |
2. Quarter 2018 kEUR |
01/01/ – 30/06/2019 kEUR |
01/01/ – 30/06/2018 kEUR |
|
|---|---|---|---|---|
| Profit or loss for the period | –360 | –619 | 145 | –210 |
| Other income | ||||
| In following periods in the profit | ||||
| and loss account to be reclassified | ||||
| into other results | 0 | 0 | 0 | |
| In following periods not in the profit | ||||
| and loss account to be reclassified | ||||
| into other results | 0 | 0 | 0 | |
| Other income after taxes | 0 | 0 | 0 | |
| Total income after taxes | –360 | –619 | 145 | –210 |
| Attributable to: | ||||
| Parent company's shareholders | –360 | –619 | 145 | –210 |
| Advisortech | Advisory | |||
|---|---|---|---|---|
| 30/06/2019 | 30/06/2018 | 30/06/2019 | 30/06/2018 | |
| kEUR | kEUR | kEUR | kEUR | |
| Segment income | ||||
| Commission income | 44,404 | 36,450 | 12,859 | 12,110 |
| of which with other segments | 536 | 607 | 4,214 | 3,479 |
| Total segment income | 44,404 | 36,450 | 12,859 | 12,110 |
| Capitalised services | 488 | 338 | 0 | 0 |
| Other income | 104 | 105 | 23 | 64 |
| Segment expenses | ||||
| Commissions | –32,502 | –25,597 | –9,528 | –8,794 |
| Personnel expenses | –5,716 | –5,223 | –1,657 | –1,480 |
| Depreciation and amortisation | –1,313 | –1,109 | –271 | –245 |
| Other | –3,654 | –3,510 | –1,656 | –1,772 |
| Total segment expenses | –43,185 | –35,439 | –13,112 | –12,291 |
| EBIT | 1,811 | 1,454 | –230 | –117 |
| EBITDA | 3,124 | 2,563 | 41 | 128 |
| Income from investments | 0 | 0 | 0 | 0 |
| Other interest and similar income | 264 | 294 | 7 | 23 |
| Yield on other securities | 0 | 0 | 0 | 0 |
| Depreciation of financial assets | 0 | 0 | 0 | 0 |
| Other interest and similar expenses | –760 | –779 | –314 | –301 |
| Financial result | –496 | –485 | –307 | –278 |
| Segment earnings before tax (EBT) | 1,316 | 969 | –537 | –395 |
| Tax expenses | –138 | –333 | 84 | 54 |
financial statements Consolidated income statement Consolidated statement of comprehensive income Segment reporting
Consolidated 21 Consolidated balance sheet Consolidated cash flow statement Consolidated statement of changes in equity Notes
| Holding | Total reportable segments |
Transfer | Total | ||||
|---|---|---|---|---|---|---|---|
| 30/06/2019 kEUR |
30/06/2018 kEUR |
30/06/2019 kEUR |
30/06/2018 kEUR |
30/06/2019 kEUR |
30/06/2018 kEUR |
30/06/2019 kEUR |
30/06/2018 kEUR |
| 943 | 993 | 58,206 | 49,553 | –5,693 | –5,079 | 52,513 | 44,474 |
| 943 | 993 | 5,693 | 5,079 | –5,693 | –5,079 | 0 | 0 |
| 943 | 993 | 58,206 | 49,553 | –5,693 | –5,079 | 52,513 | 44,474 |
| 0 | 0 | 488 | 338 | 0 | 0 | 488 | 338 |
| 0 | 0 | 127 | 169 | –28 | 0 | 99 | 169 |
| 0 | 0 | –42,030 | –34,391 | 4,524 | 3,761 | –37,506 | –30,630 |
| –996 | –930 | –8,369 | –7,633 | 0 | 0 | –8,369 | –7,633 |
| –2 | –7 | –1,586 | –1,361 | 0 | 0 | –1,586 | –1,361 |
| –745 | –740 | –6,055 | –6,022 | 1,197 | 1,318 | –4,858 | –4,704 |
| –1,743 | –1,677 | –58,040 | –49,407 | 5,721 | 5,079 | –52,319 | –44,328 |
| –800 | –684 | 781 | 653 | 0 | 0 | 781 | 653 |
| –798 | –677 | 2,367 | 2,014 | 0 | 0 | 2,367 | 2,014 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 505 | 500 | 776 | 817 | –774 | –813 | 2 | 4 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| –278 | –320 | –1,352 | –1,400 | 774 | 813 | –578 | –587 |
| 227 | 180 | –576 | –583 | 0 | 0 | –576 | –583 |
| –573 | –504 | 206 | 70 | 0 | 0 | 206 | 70 |
| –7 | –1 | –61 | –280 | 0 | 0 | –61 | –280 |
| –580 | –505 | 145 | –210 | 0 | 0 | 145 | –210 |
| Advisortech | Advisory | |||
|---|---|---|---|---|
| 2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
|
| Segment income | ||||
| Commission income | 20,967 | 17,972 | 6,843 | 6,059 |
| of which with other segments | 230 | 356 | 1,878 | 1,665 |
| Total segment income | 20,967 | 17,972 | 6,843 | 6,059 |
| Capitalised services | 246 | 150 | 0 | 0 |
| Other income | 63 | 24 | 11 | 45 |
| Segment expenses | ||||
| Commissions | –15,383 | –13,043 | –5,174 | –4,346 |
| Personnel expenses | –2,784 | –2,532 | –853 | –746 |
| Depreciation and amortisation | –686 | –576 | –173 | –121 |
| Other | –1,853 | –1,799 | –836 | –894 |
| Total segment expenses | –20,706 | –17,950 | –7,036 | –6,107 |
| EBIT | 570 | 196 | –182 | –3 |
| EBITDA | 1,256 | 772 | –9 | 118 |
| Income from investments | 0 | 0 | 0 | 0 |
| Other interest and similar income | 131 | 146 | 3 | 11 |
| Yield on other securities | 0 | 0 | 0 | 0 |
| Depreciation of financial assets | 0 | 0 | 0 | 0 |
| Other interest and similar expenses | –375 | –420 | –158 | –151 |
| Financial result | –244 | –274 | –155 | –140 |
| Segment earnings before tax (EBT) | 326 | –78 | –337 | –143 |
| Tax expenses | –66 | –157 | 18 | 30 |
| Segment net profit | 260 | –235 | –319 | –113 |
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 2019 kEUR |
2. Quarter 2018 kEUR |
2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
| 487 | 496 | 28,297 | 24,527 | –2,595 | –2,517 | 25,702 | 22,010 |
| 487 | 496 | 2,595 | 2,517 | –2,595 | –2,517 | 0 | 0 |
| 487 | 496 | 28,297 | 24,527 | –2,595 | –2,517 | 25,702 | 22,010 |
| 0 | 0 | 246 | 150 | 0 | 0 | 246 | 150 |
| 0 | 0 | 74 | 69 | 0 | 0 | 74 | 69 |
| 0 | 0 | –20,557 | –17,389 | 1,993 | 1,854 | –18,564 | –15,535 |
| –496 | –493 | –4,133 | –3,771 | 0 | 0 | –4,133 | –3,771 |
| –1 | –4 | –860 | –701 | 0 | 0 | –860 | –701 |
| –399 | –359 | –3,088 | –3,052 | 602 | 663 | –2,486 | –2,389 |
| –896 | –856 | –28,638 | –24,913 | 2,595 | 2,517 | –26,043 | –22,396 |
| –409 | –360 | –22 | –167 | 0 | 0 | –22 | –167 |
| –408 | –356 | 838 | 534 | 0 | 0 | 838 | 534 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 254 | 248 | 388 | 405 | –387 | –404 | 1 | 1 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| –138 | –159 | –671 | –730 | 387 | 404 | –284 | –326 |
| 116 | 89 | –283 | –325 | 0 | 0 | –283 | –325 |
| –293 | –271 | –305 | –492 | 0 | 0 | –305 | –492 |
| –7 | 0 | –55 | –127 | 0 | 0 | –55 | –127 |
| –300 | –271 | –360 | –619 | 0 | 0 | –360 | –619 |
| Assets | |||
|---|---|---|---|
| Notes | 30/06/2019 kEUR |
31/12/2018 kEUR |
|
| Non-current assets | |||
| Intangible assets | [7] | 50,602 | 46,136 |
| Fixed assets | 705 | 759 | |
| Financial assets | [8] | 186 | 148 |
| 51,493 | 47,043 | ||
| Deferred taxes | [9] | 2,601 | 2,700 |
| Long-term non-current assets | |||
| Accounts receivable | [10] | 824 | 1,068 |
| Other assets | [10] | 2,048 | 2,257 |
| 2,872 | 3,325 | ||
| Total non-current assets | 56,966 | 53,068 | |
| Current assets | |||
| Accounts receivable | [11] | 15,447 | 16,657 |
| Other assets | [11] | 4,936 | 3,759 |
| Other securities | 0 | 0 | |
| Cash and cash equivalents | 5,522 | 11,801 | |
| Deferred charges | 556 | 262 | |
| Total current assets | 26,461 | 32,479 | |
| Total assets | 83,427 | 85,547 |
Consolidated financial statements
Total equity and liabilities
Consolidated income statement Consolidated statement of comprehensive income Segment reporting
83,427
445
0
1,665
107 8,810 184 1,455
334 2,584
4,729 14
85,547
| 01/01/–30/06/2019 kEUR |
01/01/–30/06/2018 kEUR |
Changes to previous year in kEUR |
|||
|---|---|---|---|---|---|
| 1. | Result for the period | 145 | –210 | 355 | |
| 2. | + | Depreciation and amortisation of fixed assets | 1,586 | 1,361 | 225 |
| 3. | –/+ Other non-cash itemised income/expenses | 52 | 616 | –564 | |
| 4. | –/+ Profit/loss from disposals of fixed assets | 532 | 208 | 324 | |
| 5. | –/+ Increase/decrease of inventories, accounts receivable as well as other assets | ||||
| 188 | –696 | 884 | |||
| 6. | – /+ Decrease/increase of accounts payable as well as other liabilities | ||||
| –2,012 | –213 | –1,799 | |||
| 7. | = | Cash flow from operating activities | 491 | 1,066 | –575 |
| of which from discontinued operations | 0 | 0 | 0 | ||
| 8. | + | Cash receipts from disposals of intangible assets | 2 | 0 | 2 |
| 9. | – | Cash payments for investments in intangible assets | –1,334 | –3,881 | 2,547 |
| 10. + | Cash receipts from disposals of fixed assets | 4 | 0 | 4 | |
| 11. | – | Cash payments for investments in fixed assets | –61 | –203 | 142 |
| 12. + | Cash receipts from disposals of financial assets | 0 | 0 | 0 | |
| 13. – | Cash payments for investments in financial assets | 0 | –5 | 5 | |
| 14. + | Cash receipts from the disposal of consolidated companies | 0 | 0 | 0 | |
| 15. – | Cash payments for the acquisition of consolidated companies | –3,600 | 0 | –3,600 | |
| 14. – | Cash payments for financial assets in the scope of cash forecast | 0 | 0 | 0 | |
| 15. = | Cash flow from investment activities | –4,989 | –4,088 | –900 | |
| of which from discontinued operations | 0 | 0 | 0 | ||
| 16. +/- Cash receipts/-payments from capital increase | 0 | 0 | 0 | ||
| 17. | + | Cash payments from the issue of bonds | 0 | 0 | 0 |
| 18. – | Cash payments from loan redemptions | –796 | –46 | 0 | |
| 19. – | Interest paid | –986 | –926 | –750 | |
| 20. = | Cash flow from financing activities | –1,782 | –972 | –60 | |
| of which from discontinued operations | 0 | 0 | –810 | ||
| 21. | Non-cash itemised changes in cash and cash equivalents (total of pos. 7, 17, 22) | –6,279 | –3,994 | –2,285 | |
| 22. | Cash and cash equivalents at the beginning of the period | 11,801 | 6,362 | 5,439 | |
| 23. = | Cash and cash equivalents at the end of the period | 5,522 | 2,368 | 3,154 | |
| Breakdown of cash and cash equivalents | 30/06/2019 kEUR |
30/06/2018 kEUR |
Changes to previous kEUR |
||
| Cash and cash in banks | 5,522 | 2,368 | 3,154 | ||
| Current liabilities due to banks | 0 | 0 | 0 | ||
| 5,522 | 2,368 | 3,154 |
Consolidated financial statements
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 |
Capital reserve kEUR |
Other retained earnings kEUR |
Cash flow hedge marked to market kEUR |
Securities marked to market kEUR |
Other equity com ponents kEUR |
Shares without domi nating influence |
Total equity kEUR |
|
|---|---|---|---|---|---|---|---|---|---|
| As of 01/01/2018 | 11,934,971 | 11,935 | 12,845 | 766 | 0 | 0 | 2,486 | 0 | 28,032 |
| Result as of 30/06/2018 | –210 | –210 | |||||||
| Other equity changes | 0 | ||||||||
| Retained earnings | 0 | ||||||||
| – Allocation from earnings | 0 | ||||||||
| As of 30/06/2018 | 11,934,971 | 11,935 | 12,844 | 766 | 0 | 0 | 2,276 | 0 | 27,822 |
| As of 01/01/2019 | 13,128,461 | 13,128 | 21,638 | 445 | 0 | 0 | –1,867 | 0 | 33,344 |
| Result as of 30/06/2019 | 145 | 145 | |||||||
| Other equity changes | –4 | –4 | |||||||
| Retained earnings | 0 | ||||||||
| – Allocation from earnings | 0 | ||||||||
| As of 30/06/2019 | 13,128,461 | 13,128 | 21,638 | 445 | 0 | 0 | –1,726 | 0 | 33,485 |
| 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 |
| financial statements | 31 | |
|---|---|---|
| 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 | Impairment expenses | 34 |
| 2.2.3 | Financial assets and other | |
| non-current assets [8] | 35 | |
| 2.2.4 | Deferred tax assets and liabilities [9] | 36 |
| 2.2.5 | Non-curent assets [10] | 36 |
| 2.2.6 | Current assets [11] | 36 |
| 2.2.7 | Equity | 37 |
| 2.2.8 | Non-current liabilities [12] | 37 |
| 2.2.9 | Accruals [13] | 38 |
| 2.2.10 Current liabilities [14] | 38 |
2.3 Related parties 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 |
The JDC Group (JDC Group) is a diversified financial services company with the operating segments Advisortech and Advisory plus Holding.
The company was registered on 6 October 2005 under the name Aragon Aktiengesellschaft in the commercial register of the Wiesbaden district court (HRB 22030). The annual shareholders' meeting decided the change of name into JDC Group AG on 24 July 2015, this was fulfilled with the entry into the commercial register on 31 July 2015.
The company's registered office is located in Wiesbaden. The address is:
Kormoranweg 1 65201 Wiesbaden Federal Republic of Germany
JDC Group shares are admitted for the open market (Scale).
The interim financial statements for the reporting period from 1 January 2019 to 30 June 2019 relates to the parent company and its subsidiaries on a consolidated basis.
JDC Group's interim financial statements for the first half year of 2019 and the corresponding previous year period from 1 January 2018 to 30 June 2018 have been prepared in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB), which is applicable in the European Union (EU). The term IFRS also includes the International Accounting Standards (IAS) which are still in place. All interpretations binding for financial year 2019 by the International Financial Reporting Interpretations Committee (IFRIC), formerly the Standing Interpretations Committee (SIC), as applicable in the EU have likewise been applied. In the following the term IFRS has been used throughout.
The interim report has not been subject to an auditor's review.
JDC Group AG is not a parent company within the meaning of Section 315e (1) and (2) of the German Commercial Code (HGB) that is required to prepare interim financial statements. JDC Group AG voluntarily prepares its interim financial statements under IFRS.
The consolidated financial statements consists of the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated cash flow statement and the notes to the consolidated financial statements.
The separate financial statements of JDC Group AG and its subsidiaries have been included in the interim financial statements in observance of the recognition and valuation policies applicable throughout the Group.
The interim financial statements have been prepared in euros (EUR), which is the functional currency of the Group. Except as otherwise indicated, all figures have been rounded to the nearest thousand Euros (kEUR). The interim consolidated income statement has been prepared in accordance with the total cost accounting method. The consolidated financial statements have been uniformly prepared for the periods presented here in accordance with the following principles of consolidation, accounting and valuation.
The interim financial statement, including figures from the comparison period in the previous year, was basically compiled according to the consolidation, accounting and valuation principles applied to the annual report 2018. A detailed description of these principles is published in the notes of the annual report 2018. The annual report is available on the company's website: www.jdcgroup.de.
In addition to JDC Group AG the interim consolidated financial statements generally include all subsidiaries under IFRS 10, in which JDC Group AG holds a majority of voting rights or which it can control by other means.
On 1st April , 2019, KOMM Investment & Anlagevermittlungs GmbH was newly included in the scope of consolidation of the JDC Group. The Group subsidiary Jung, DMS & Cie. Pool Gmbh acquired 100 percent of the shares in KOMM Investment & Anlagenvermittlungs GmbH in April 2019.
With the exception of Jung, DMS & Cie. GmbH, Vienna/Austria, jupoo finance GmbH, Vienna/Austria, FiNUM. Private Finance AG, Vienna/Austria, and FiNUM. Private Holding GmbH, Vienna/Austria, all of the subsidiaries are registered in Germany. In addition to the parent company, the interim consolidated financial statements also include the direct subsidiaries and sub-groups Jung, DMS & Cie. Aktiengesellschaft, FiNUM. Private Finance Holding, Wiesbaden, and FiNUM. Private Finance Holding GmbH, Vienna/Austria.
Consolidated financial statements
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.
Income relates essentially to initial and follow-up commission from brokerage services in the three segments of insurance products, investment funds and investments/closed-end funds as well as other services and breaks down as follows:
| 2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
01/01/–30/06/2019 kEUR |
01/01/–30/06/2018 kEUR |
|
|---|---|---|---|---|
| Initial commission | ||||
| Insurance products | 11,502 | 10,035 | 25,140 | 20,219 |
| Investment funds | 3,966 | 3,040 | 6,838 | 5,763 |
| Shares/Closed-end funds | 996 | 1,021 | 2,226 | 1,775 |
| Follow-up commission | 5,048 | 4,355 | 9,284 | 8,898 |
| Overrides | 1,306 | 1,385 | 3,562 | 3,665 |
| Services | 885 | 715 | 1,666 | 1,076 |
| Fee-based advisory | 865 | 709 | 1,490 | 1,546 |
| Other income | 1,134 | 750 | 2,307 | 1,532 |
| Total | 25,702 | 22,010 | 52,513 | 44,474 |
The commission income increased by 18.1 percent compared to the previous year to kEUR 52,513.
| 2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
01/01/–30/06/2019 kEUR |
01/01/–30/06/2018 kEUR |
|
|---|---|---|---|---|
| Capitalised services | 246 | 150 | 488 | 338 |
| Reversal of impairments/ | ||||
| income from receivables written off | 0 | 0 | 0 | 0 |
| Income from provision's release | 21 | 16 | 31 | 79 |
| Income from security sales | 0 | 0 | 0 | 0 |
| Income from statute-barred debt | 2 | 0 | 2 | 0 |
| Income from benefits in kind | 10 | 12 | 21 | 25 |
| Other operating income | 41 | 41 | 45 | 65 |
| Total | 320 | 219 | 587 | 507 |
Capitalised services amounted to kEUR 488 (30 June 2018: kEUR 338) and were primarily achieved by developing in-house software solutions (Compass, World of Finance, iCRM and portal geld.de) (cf. ref. 2.2.1.1 Concessions and Licences).
The other operating income of kEUR 45 (previous year: kEUR 65) relates essentially to income from resolution of accruals kEUR 18 (previous year: kEUR 3).
The positon contains mainly the commissions for independent brokers. The expenses, which rise in relation to commission income, increased by kEUR 6,876 to kEUR 37,506 versus the previous year (30 June 2018: kEUR 30,630).
| 2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
01/01/–30/06/2019 kEUR |
01/01/–30/06/2018 kEUR |
|
|---|---|---|---|---|
| Wages and salaries | 3,462 | 3,153 | 7,054 | 6,426 |
| Social security | 671 | 618 | 1,315 | 1,207 |
| Total | 4,133 | 3,771 | 8,369 | 7,633 |
Personnel expenses essentially comprise wages and salaries, remuneration and other payments to the Management Board and employees of the JDC Group.
Social security includes the employer's statutory contributions (social security contributions).
In the annual average the Group companies employed 280 staff (previous year: 255), excluding Management Board members (fulltime-equivalents).
| 2. Quarter 2019 kEUR |
2. Quarter 2018 kEUR |
01/01/–30/06/2019 kEUR |
01/01/–30/06/2018 kEUR |
|
|---|---|---|---|---|
| Depreciation and amortization of intangible assets | –723 | –667 | –1,472 | –1,361 |
| Purchased software | –101 | –681 | –116 | –125 |
| Internally developed software | –211 | –378 | –638 | –710 |
| Insurance portfolios | –405 | 440 | –706 | –478 |
| Contract preparation costs | –6 | 0 | –12 | 0 |
| Other intangible assets | 0 | –48 | 0 | –48 |
| Depreciation and amortization of | ||||
| property and equipment | –137 | –34 | –114 | 0 |
| Total | –860 | –701 | –1,586 | –1,361 |
Consolidated financial statements
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 2019 kEUR |
2. Quarter 2018 kEUR |
01/01/–30/06/2019 kEUR |
01/01/–30/06/2018 kEUR |
|
|---|---|---|---|---|
| Marketing costs | 210 | 145 | 443 | 353 |
| Travel costs | 113 | 114 | 221 | 250 |
| External services | 183 | 211 | 315 | 306 |
| IT costs | 752 | 688 | 1,554 | 1,420 |
| Occupancy costs | 383 | 393 | 748 | 737 |
| Vehicle costs | 99 | 89 | 190 | 173 |
| Office supplies | 25 | 37 | 55 | 65 |
| Fees, insurance premiums | 185 | 178 | 343 | 332 |
| Postage, telephone | 70 | 76 | 155 | 144 |
| Write-downs/impairments of receiveables | -29 | 33 | -4 | 64 |
| Legal and consulting costs | 282 | 245 | 490 | 471 |
| Training costs | 16 | 16 | 31 | 33 |
| Human resources | 0 | 0 | 1 | 0 |
| Supervisory board compensation | 42 | 28 | 58 | 62 |
| Non-deductible input tax | 56 | 61 | 124 | 131 |
| Impairment IFRS 9 | 0 | 0 | 0 | 0 |
| Other | 99 | 75 | 134 | 163 |
| Total | 2,486 | 2,389 | 4,858 | 4,704 |
The advertising expenses are comprised of costs for trade fairs, customer events, printed matter and entertainment.
Third-party services include expenses for agencies, external workers, share services and general meetings.
IT costs are comprised of expenses for the general IT operation (servers, clients, data centre), software leasing, scanning services and software licences, if they are not capitalisable.
Occupancy costs include expenses for rent, incidental rental costs, energy supply and cleaning costs.
Vehicle costs include expenses for the vehicle fleet.
Under fees and insurance premiums, expenses from insurance policies, contributions to professional associations and BaFin/FMA (Austria) fees are reported in the balance sheet.
The legal and advisory costs include expenses for legal issues/legal advisory, tax advisory, annual financial statement and auditing costs, as well as general accounting costs.
On the basis of the existing revenue structure and the included, non-taxable payments, the JDC Group has an input tax deduction rate of approx. 13%, this is recalculated annually on the basis of the ongoing shifts in the revenue structure.
The position "Concessions and Licences" essentially comprises software licences for standard commercial software (depreciaton period 3 years linear) and customer base (depreciaton period 15 years linear) with a carrying amount of kEUR 23,512 (31 December 2018: kEUR 21,572).
In the financial period internally generated software tools totalling kEUR 488 (30 June 2018: kEUR 338) were capitalised. These are essentially company-specific software applications (Compass, World of Finance, iCRM and portal geld.de) to support sales of financial products.
Goodwill results from the first-time consolidation at the time of the relevant business combination.
| 30/06/2019 kEUR |
31/12/2018 kEUR |
|
|---|---|---|
| Advisortech | 21,621 | 19,096 |
| Advisory | 5,461 | 5,461 |
| Holding | 7 | 7 |
| 27,090 | 24,564 |
Goodwill was subjected to an impairment test as of 31 December 2018. A possible impairment requirement results from the value comparison of the Carrying amount of the CGU or group of CGUs including the business assigned to it or Goodwill at its recoverable amount. If the book values exceed the recoverable amount, then one is Impairment of goodwill in the income statement. The recoverable amount is the maximum of the fair value less costs to sell and the value in use.
The achievable amount of the generating mediums of payment relevant entities Advisortech and Advisory are determined on basis of calculation of use value under applicaton of estimated cash flows before income taxes. The estimation are deviated from management and supervisory board approved detailed budgeting of the group companies for the financial year 2019. For the financial years 2020 and 2021 moderate growth ratse (phase I) are assumed. For the subsequent periods, the cash flow was forecasted as perpetual annuity (phase II).
Consolidated financial statements
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 discount factor (capitalization interest rate) for the Group companies is calculated on the basis of the capital asset pricing model. The underlying determination of the capitalization interest rate assumptions, including the risk-free base rate, the market risk premium and the beta factor, are determined on the basis of publicly available information or capital market data.
At one of the yield curve, risk-free base rate of 0.21% (previous year: 0.80%), a market risk premium of 6.07% (previous year: 5.17%) and taking into account a beta factor of the comparative investment from 0.95 (previous year: 1.01), a capitalization interest rate of 6.0% (previous year: 6.0%) is calculated. In the capitalization rate a growth discount is used to calculate the present value of the first cash flows of the perpetual annuity 1.0% (previous year: 1.0%). An additional, essential influence on the free cash flow is the assumptions for revenue growth and earnings development of the operating units.
The rise in the discount rate before taxes to 8.0 percent (viz. + 2 percent) does not mean a loss of value for the mediums of payment relevant entities. The decline of planned EBIT in the mediums of payment relevant entities by –20 percent does not require a loss of value. A significant reduction of the planned EBT growth beyond this may lead to the book value exceeding the achievable amount. However, as significant measures have already been initiated for increasing EBT, the Management Board regards this scenario as unlikely. For the cash-generating units Advisortech and Advisory, the fair value less the costs of disposal.
In the financial year, as in the previous year, none amortization of goodwill required. As of December 31, 2018, the market capitalization was above the carrying amount of its equity.
| 30/06/2019 kEUR |
31/12/2018 kEUR |
|
|---|---|---|
| Available-for-sale | ||
| Shares in affiliated companies | 25 | 25 |
| Investments | 123 | 123 |
| Securities | 38 | 0 |
| Total | 186 | 148 |
The breakdown of book values is as follows:
| 30/06/2019 kEUR |
31/12/2018 kEUR |
|
|---|---|---|
| Deferred tax assets | ||
| Tax reimbursement claims from loss carry-forwards | 2,507 | 2,606 |
| Tax reimbursement claims from financial liabilities | 94 | 94 |
| Total | 2,601 | 2,700 |
| Deferred tax liabilities | ||
| Intangible assets (software) | 2,070 | 1,522 |
| From other recognition differences | 1,075 | 143 |
| Total | 3,145 | 1,665 |
For the German companies, deferred taxes were calculated on the basis of a corporation tax rate of 15.0% plus solidarity surcharge of 5.5% and the local trade tax rate of the city of Wiesbaden of 454.0% (combined income tax rate: 31.72%).
For the Austrian companies, the corporation tax rate of 25.0% has been applied, which has been in force since 2005.
| 30/06/2019 kEUR |
31/12/2018 kEUR |
|
|---|---|---|
| Accounts receivables | 824 | 1,068 |
| Other assets | 2,048 | 2,257 |
| Total | 2,872 | 3,325 |
The accounts receivable relate essentially to commission receivable from the cancellation reserves. The other assets contain mainly of receivables to consultants.
| 30/06/2019 | 31/12/2018 | |
|---|---|---|
| kEUR | kEUR | |
| Accounts receivable | 15,447 | 16,657 |
| Other assets | ||
| Commission advances | 556 | 262 |
| Prepaid expenses | –420 | –420 |
| Other | 5,356 | 4,179 |
| Total | 20,939 | 20,678 |
Accounts receivable essentially relate to commission receivable from partner companies and broker pool partners from brokerage services and the cancellation reserve.
The remaining other assets essentially relate to tax refund claims and short-term loans.
Prepaid expenses relate to payments on account for advertising events in the subsequent year, insurance, contributions and motor vehicle tax.
Movements in the Group equity of JDC Group AG are shown in the statement of changes in equity (cf. also ref. 4).
| 30/06/2019 kEUR |
31/12/2018 kEUR |
|
|---|---|---|
| Bond | 14,862 | 14,813 |
| Liabilities to banks | 2,548 | 107 |
| Accounts payable | 8,993 | 8,810 |
| Other liabilities | ||
| Other | 184 | 184 |
| Total | 26,587 | 23,914 |
Under the position bond is a corporate bond of the Jung, DMS & Cie. Pool GmbH from 2015 displayed in the balance sheet, it is shown in continued costs of purchase under usage of the effective interest method.
Under liabilities to banks is a loan from FiNUM.Private Finance AG, Vienna/Austria, issued through Bank Austria and a loan from JDC Geld.de GmbH, Wiesbaden, issued through Fintechgroup Bank AG.
Non-current liabilities under accounts payable pertain to liabilities from broker's commissions retained until expiration of the cancellation reserve. The obligation to pay broker's provision usually has a residual term of one to five years. Other liabilities contain mainly long-term part of loan obligation.
| 30/06/2019 kEUR |
31/12/2018 kEUR |
|
|---|---|---|
| Pension provisions | 421 | 421 |
| Provisions for cancellation liability | 1,237 | 986 |
| Provisions for threatened claims from financial loss | 46 | 48 |
| Total | 1,704 | 1,455 |
Under provisions for cancellation liability is determined on basis of estimation and therefore not on personell classifiable parts of cancellation risks from business parts displayed. Furthermore are here provisions for threatened claims from financial loss displayed.
| 30/06/2019 kEUR |
31/12/2018 kEUR |
|
|---|---|---|
| Pension provisions | 46 | 46 |
| Provisions for taxes | 91 | 288 |
| Liabilities to banks | 92 | 2,584 |
| Accounts payable | 14,527 | 17,508 |
| Other current liabilities | ||
| Loan obligation | 0 | 761 |
| Other | 3,687 | 3,968 |
| Deferred income | 63 | 14 |
| Total | 18,506 | 25,169 |
Trade payables are served at maturity.
Transactions with members of the Management Board and Supervisory Board:
| 30/06/2019 kEUR |
30/06/2018 kEUR |
|
|---|---|---|
| Supervisory Board | ||
| Remuneration | 55 | 56 |
| Management Board | ||
| Total remuneration* | 446 | 439 |
* 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 Group's financial position is reflected in the cash flow statement, which forms part of the interim consolidated financial statements in accordance with IFRS.
The cash flow from operating activities was positive with 491 kEUR.
In the cash flow statement, the changes in cash and cash equivalents in the JDC Group during the financial year under review is reflected by the payment inflows and outflows from operating activities, investment activities and financing activities. Non-cash operations are summarized in one amount and are shown in the cash flow from running operating activities.
Cash and cash equivalents are broken down in the consolidated cash flow statement. Cash and cash equivalents with a residual term of a maximum of three months are pooled in this item. Cash equivalents are current investments that can be converted into cash at any time and which are only subject to minor fluctuations in value.
JDC Group AG reports on three operating segments which are managed independently by committees responsible for the segment in accordance with the type of products and services offered. The designation of company segments as business segments is based in particular on the existence of segment managers responsible for the results who report directly to the chief operating decision maker of the JDC Group Group.
The JDC Group Group is divided into the following segments:
In the Advisortech segment, the Group pools its activities involving independent financial advisers. The offering encompasses all asset classes (investment funds, closed-end funds, insurance products and certificates) provided by different product companies and including order processing and commission settlement as well as various other services relating to investment advice for retail customers. The advisors were supported by "allesmeins", a digital insurance folder actively managed and the World of Finance.
The Group's activities that focus on advisory and sales services for retail customers are bundled in the Advisory segment. As an independent financial and investment adviser, we offer our customers holistic consultancy services for insurance, investmentfunds and financing products that are tailored to the customer's particular situation.
In the segment Holding includes the JDC Group AG.
The measurement principles for JDC Group's segment reporting are based on the IFRS standards used in the consolidated financial statements. JDC Group evaluates the performance of the segments using, among other things, the operating results (EBIT). The revenues and preliminary services between the segments are allocated on the basis of market prices.
JDC Group Group is mainly acting in Germany and Austria, therefore the customer Group forms a single geographic segment (German-speaking region of the European Union).
Consolidated financial statements
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
Hamburg Graduated Certified Accountant Deputy Chairman
Vienna Independent entrepreneur
Wiesbaden Attorney
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).
JDC Group AG Kormoranweg 1 65201 Wiesbaden
Telephone: +49 (0)611 890 575 0 Telefax: +49 (0)611 890 575 99
[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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