JDC : Letter to shareholders 3rd Quarter of 2024

Published: 2024-11-14 02:04:09 ET JDC.DE

Letter to shareholders 3. Quarter of2024

Dr. Sebastian Grabmaier

Marcus Rex

CEO

CMO, CSO

Ralph Konrad

CFO, CIO

Dr. Ramona Evens

COO

Management Board letter to shareholders

DEAR SHAREHOLDERS, DEAR BUSINESS PARTNERS,

JDC Group AG has once again increased its revenue growth compared to previous quarters and has thus achieved revenues of over EUR 50 million for the first time in a third quarter, although the third quarter is normally a rather weak quarter due to seasonal factors. The Advisortech segment shows with an extraordinary revenue growth rate of around 39 percent in the third quarter that growth rates of over

20 percent can be sustainably achieved.

JDC Group revenues rose by 36.1 percent in the third quarter compared to the same quarter of the previous year and by 28.7 percent in the first nine months of 2024, from EUR 122.9 million to EUR 158.2 million. Consolidated net profit more than doubled to EUR 3.1 million.

Important steps in the third quarter of 2024 to date:

JDC Group AG expands its Management Board

Due to the dynamic development of the company and the wide range of tasks, the company is expanding its Management Board by a fourth member. Dr. Ramona Evens (*1984) has taken over the role of Chief Operating Officer of the JDC Group as of September 1, 2024. Dr. Evens, who holds a doctorate in business administration, is a trained strategy consultant. She has managed the sales management of a medium-sized German insurance company and, in addition to her own entrepreneurial activities, was most recently managing director of the non-life insurance division at the comparison portal Check24.

JDC Group acquires major European insurance company as new platform customer

JDC Group AG has concluded a long-term cooperation agreement with one of Europe's largest insurance companies. As it already does for other insurance companies, JDC will support the business processes of its cooperation partner in the third-party insurance business as a technology and service provider. JDC's platform technology will be linked via interfaces to the cooperation partner's customer portal for the purposes of transaction processing and back-office functionalities.

JDC GROUP | Letter to shareholders Q3/2024

JDC Group subsidiary Jung, DMS & Cie. and VGH Versicherungen sign exclusive cooperation agreement for insurance business of savings banks

JDC Group subsidiary Jung, DMS & Cie. and VPP Service GmbH, a subsidiary of VGH Versicherungen from Hannover, have signed an exclusive cooperation agreement in the area of insurance brokerage for private customers of the savings banks in the business territory of VGH Versicherungen. The service contract begins on January 1, 2025 and has a minimum term of three years. The VGH's business territory includes

34 savings banks, which manage around 4.8 million insurance contracts for their 1.6 million customers.

Results for the third quarter and first nine months of 2024

Group revenues rose again significantly in the third quarter, by 36.1 percent from EUR 38.3 million to EUR 52.1 million. Thus, the group grew by 28.7 percent to EUR 158.2 million in the first nine months of 2024 (9M 2023: EUR 122.9 million).

Quarter-on-quarter, earnings before interest, taxes, depreciation and amortization (EBITDA) also increased significantly by 41.4 percent to kEUR 2,302 (Q3 2023: kEUR 1,628), bringing EBITDA for the first nine months of 2024 to kEUR 9,198 (9M 2023: kEUR 6,715) and thus increasing by around

37 percent.

Earnings before interest and taxes (EBIT) multiplied in the third quarter, rising from kEUR 168 to kEUR 761. EBIT for the first nine months of 2024 thus amounted to kEUR 4,606 (9M 2023: kEUR 2,508), an increase of around 84 percent.

In the third quarter, the consolidated result amounted to kEUR 279 (same quarter of the previous year: kEUR -359) and thus also developed significantly better than in the same quarter of the previous year. The consolidated result also developed very well in the first nine months of 2024 and now stands at kEUR 3,052, more than doubling (9M 2023: kEUR 1,267).

Equity amounted to EUR 54.3 million as of September 30, 2024. This boosted the equity ratio to a solid 38.3 percent (December 31, 2023: EUR 52.8 million and 37.2 percent).

in kEUR

Changes

compared to

Q3/2024 *

Q3/2023

previous year

30/09/2024 **

30/09/2023

previous year

kEUR

in %

kEUR

in %

Revenues

52,140

38,303

36.1

158,216

122,914

28.7

- thereof Advisortech

46,352

33,441

38.6

141,246

108,446

30.2

- thereof Advisory

9,095

7,716

17.9

27,701

23,638

17.2

- thereof Holding/Cons.

-3,307

-2,853

-15.9

-10,732

-9,169

-17.0

EBITDA

2,302

1,628

41.4

9,198

6,715

37.0

EBIT

761

168

>100

4,606

2,508

83.7

EBT

458

-242

>100

3,731

1,413

>100

Net profit

279

-359

>100

3,052

1,267

>100

*, **: In the third quarter, expenses for M&A projects and the integration of the Top Ten Group amounted to 300 TEUR. In the first nine months of 2024, the amount is around 600 TEUR.

Management Board letter to shareholders

The individual business units developed as follows:

ADVISORTECH

The Advisortech division increased its revenue in the third quarter by around 39 percent to EUR 46.4 mil- lion, compared to EUR 33.4 million in the previous year. In the first nine months of 2024, it rose by around 30 percent to almost EUR 141.2 million (9M 2023: EUR 108.4 million).

In a quarterly comparison, earnings before interest, taxes, depreciation and amortization (EBITDA) rose from EUR 2.0 million to EUR 2.7 million. This corresponds to an increase of 35.1 percent. In the third quarter, EBITDA was burdened by project and one-time costs of around EUR 0.3 million that arose in connection with the integration of the Top Ten Group. Excluding these costs, the EBITDA of the business unit would have grown by as much as 50 percent in the third quarter. EBITDA for the first nine months of 2024 was significantly above the previous year's level at EUR 9.8 million (9M 2023: EUR 7.5 million).

In the third quarter, earnings before interest and taxes (EBIT) rose by 63.8 percent to EUR 1.5 million after EUR 0.9 million in the same period of the previous year, while in the first nine months of 2024 they improved significantly by 43.2 percent to EUR 6.3 million (9M 2023: EUR 4.4 million).

ADVISORY

The Advisory segment also performed excellently in the third quarter. Revenues rose by 17.9 percent quarter-on-quarter to EUR 9.1 million (Q3 2023: EUR 7.7 million) and thus to EUR 27.7 million in the first nine months of 2024 (9M 2023: EUR 23.6 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the Advisory segment rose by around 35 percent from EUR 0.5 million in the previous year to EUR 0.7 million and increased to

EUR 2.2 million in the first nine months of 2024 (9M 2023: EUR 1.7 million).

Earnings before interest and taxes (EBIT) doubled in the third quarter from EUR 0.2 million in the same period of the previous year to EUR 0.4 million. EBIT for the first nine months of 2024 is therefore EUR 1.4 million (9M 2023: EUR 0.8 million).

Outlook

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

We expect good year-end business in the fourth quarter despite the current challenging political and economic conditions.

We continue to expect revenue growth to between EUR 205 and 220 million and EBITDA of between EUR 14.5 and 16.0 million for 2024.

JDC GROUP | Letter to shareholders Q3/2024

Thanks to employees and shareholders

We would like to express our special thanks once again to the employees and distribution partners of JDC Group AG and our subsidiaries, whose commitment and motivation are the basis of our success.

We also extend our thanks to our shareholders, who believe in our business model and support and affirm the Management Board and Supervisory Board.

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

Yours sincerely,

Dr. Sebastian Grabmaier

Ralph Konrad

Marcus Rex

Dr. Ramona Evens

Consolidated financial statements

Consolidated income statement

Consolidated cash flow statement

Segment reporting

Consolidated balance sheet

JDC GROUP | Letter to shareholders Q3/2024

Consolidated income statement

01/01/-

Q3/2024

Q3/2023

30/09/2024

30/09/2023

kEUR

Commission income

52,140

38,303

158,216

122,914

Capitalised services

293

344

975

1,165

Other operating income

427

1,098

594

Commission expenses

-38,486

-27,283

-115,475

-88,368

Personnel expenses

-8,331

-7,151

-24,841

-21,164

6. Depreciation and amortisation of tangible and

intangible assets

-1,541

-1,460

-4,592

-4,207

Other operating expenses

-3,742

-2,649

-10,775

-8,426

Income from investments

Share of profit from associates

-9

113

-9

10.

Income from securities

11.

Financial income

166

415

12.

Impairment losses on financial instruments

13.

Financial expenses

-470

-427

-1,421

-1,172

14.

Operating profit/loss

458

-242

3,731

1,413

15.

Income tax expenses

-177

-115

-636

-99

16.

Other tax expenses

-2

-43

-47

17.

Net profit

279

-359

3,052

1,267

attributable to shares without controlling interests

-16

attributable to parent company

279

-375

3,052

1,228

18.

Earnings per share

0.02

-0.03

0.23

0.09

Consolidated financial statements

Consolidated income statement

Consolidated cash flow statement

Segment reporting

Consolidated balance sheet

Consolidated cash flow statement

01/01/-

Changes compared

30/09/2024

30/09/2023

to previous year

kEUR

Result for the period

3,052

1,228

1,824

Depreciation and amortisation of fixed assets

4,591

4,207

384

-/+

Decrease/increase of provisions

-1,076

444

-1,520

-/+

Other non-cash itemised income/expenses

-84

-56

-28

-/+

Profit/loss from disposals of fixed assets

-/+

Increase/decrease of inventories, accounts receivable as well as other assets

3,139

2,054

1,085

-/+

Decrease/increase of accounts payable as well as other liabilities

555

549

-/+ Income taxes paid/refunded

-259

-61

-198

Cash flow from operating activities

9,918

7,822

2,096

10.

Cash receipts from disposals of intangible assets

11.

Cash payments for investments in intangible assets

-1,511

-1,724

213

12.

Cash receipts from disposals of fixed assets

13.

Cash payments for investments in intangible assets

-305

-363

14.

Cash receipts from disposals of financial assets

362

15.

Cash payments for investments in financial assets

-2,062

-1,187

-875

16.

Cash receipts from the disposal of consolidated companies

17.

Cash payments for the acquisition of consolidated companies

-1,937

-3,080

1,143

18.

Cash payments for investments funds within the borders of short-term finance disposition

19.

Cash receipts from investments funds within the borders of short-term finance disposition

20.

Cash flow from investment activities

-5,453

-6,354

901

21.

Cash receipts/payment to equity

13,053

-13,053

22.

Payments received for stock options issued

231

23.

Payments from the purchase of own shares

-1,748

24.

Cash receipts from issuance of bonds

3,450

-3,450

25.

Payments from the redemption of bonds

26.

Cash receipts from borrowings

500

27.

Cash payments from loan redemptions

-66

28.

Payments for the distribution of profit shares

-31

29.

Payments for the repayment part of the rental and leasing obligations

-1,401

-871

-530

30.

Paid interests

-13

31.

Cash flow from financing activities

-2,497

15,832

-18,329

32.

Changes in cash and cash equivalents (total of pos. 9, 20, 31)

1,968

17,300

-15,332

33.

Cash and Cash equivalents at the beginning of the period

26,362

16,672

9,690

34.

Cash and Cash equivalents at the end of the period

28,330

33,972

-5,642

Breakdown of cash and cash equivalents

30/09/2024

30/09/2023

Change

kEUR

Cash and cash in banks

28,330

33,972

-5,642

Current liabilities due to banks

28,330

33,972

-5,642

JDC GROUP | Letter to shareholders Q3/2024

Segment reporting 30 September 2024

Advisortech

Advisory

30/09/2024

30/09/2023

30/09/2024

30/09/2023

kEUR

Segment income

Commission income

141,246

108,446

27,701

23,638

of which with other segments

1,199

709

9,613

8,606

Total segment income

141,246

108,446

27,701

23,638

Capitalised services

975

1,165

Other income

898

368

199

230

Segment expenses

Commissions

-107,636

-81,445

-18,351

-15,959

Personnel expenses

-17,262

-14,559

-4,505

-3,838

Depreciation and amortisation

-3,520

-3,072

-818

-881

Other

-8,407

-6,506

-2,832

-2,405

Total segment expenses

-136,825

-105,582

-26,505

-23,084

EBIT

6,294

4,396

1,395

784

EBITDA

9,814

7,468

2,212

1,665

Income from investments

Income from at-equity valuation

113

-9

Other interest and similar income

590

402

Yield on other securities

Depreciation of financial assets

Other interest and similar expenses

-1,819

-1,360

-680

-449

Financial result

-1,097

-966

-633

-422

Segment earnings before tax (EBT)

5,197

3,430

761

362

Tax expenses

-97

-258

-202

Segment net profit

5,101

3,520

503

160

Minority interests

Segment net profit after minority interests

5,101

3,481

503

160

Disclaimer

JDC Group AG published this content on November 14, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 14, 2024 at 07:02:55.425.