OVB : Three Month report 1 January - 31 March 2024

Group interim report - First Quarter

1 January - 31 March 2024

OVB profile

With more than 4.5 million clients, over 5,900 full-time financial advisors and business operations in 16 national markets, OVB is one of the leading financial intermediary groups in Europe.

Content

04 | Welcome

06 | OVB on the capital market

07 | Interim consolidated management report

04 Welcome

06 OVB on the capital market

07 Business activity

1. Macroeconomic environment

1. Business performance
2. Profit/Loss
3. Financial position
4. Assets and liabilities

1. Personnel

1. Subsequent events

1. Opportunities and risks
2. Outlook

1. |

1. |

1. |
2. |

IFRS-Interim consolidated financial statements

Notes to the interim consolidated financial statements

Responsibility statement

Review report

1. Consolidated statement of financial position

1. Consolidated income statement

1. Consolidated statement of comprehensive income
2. Consolidated statement of cash flows
3. Consolidated statement of changes in equity

20 General information

1. Significant events in the interim reporting period
2. Notes to the statement of financial position and the statement of cash flows

1. Notes to the income statement

1. Notes on segment reporting

1. Other disclosures relating to the interim consolidated financial statements

1. Responsibility statement
2. Review report

1. Financial Calendar / Contact
2. Imprint

Key figures

Key figures for the OVB Group Q1 2024

Key operating figures

Clients (31/03)

Financial advisors (31/03)

Brokerage income

Key financial figures

Earnings before interest and taxes (EBIT)

EBIT margin

Consolidated net income after non-controlling interests

Earnings per share (undiluted)

Unit

Number

Number

Euro million

Unit

Euro million

%

Euro million

Euro

01/01 - 31/03/2023

4.27 m

5,785

83.4

01/01 - 31/03/2023

3.1

3.7

2.3

0.16

01/01 - 31/03/2024

4.55 m

5,939

96.8

01/01 - 31/03/2024

4.3

4.4

4.4

0.31

Change

+6.5 %

+2.7 %

+16.1 %

Change

+37.2 %

+0.7 %-pts

+87.2 %

+87.2 %

Key figures for the regions Q1 2024

Central and Eastern Europe

Clients (31/03)

Financial advisors (31/03)

Brokerage income

Earnings before interest and taxes (EBIT)

EBIT margin

Germany

Clients (31/03)

Financial advisors (31/03)

Brokerage income

Earnings before interest and taxes (EBIT)

EBIT margin

Southern and Western Europe

Clients (31/03)

Financial advisor (31/03)

Brokerage income

Earnings before interest and taxes (EBIT)

EBIT margin

Unit

Number

Number

Euro million

Euro million

%

Unit

Number

Number

Euro million

Euro million

%

Unit

Number

Number

Euro million

Euro million

%

01/01 - 31/03/2023

2.91 m

3.549

45.2

2.7

6.0

01/01 - 31/03/2023

613,588

1,161

13.8

1.4

9.9

01/01 - 31/03/2023

747,983

1,075

24.3

1.2

5.1

01/01 - 31/03/2024

3.15 m

3.700

52.7

4.6

8.7

01/01 - 31/03/2024

610,757

1,089

14.8

0.8

5.2

01/01 - 31/03/2024

792,122

1,150

29.3

1.7

5.9

02

03

Change

+8.2 %

+4.3 %

+16.5 %

+68.2 %

+2.7 %-pts

Change

-0.5 %

-6.2 %

+6.8 %

-44.1 %

-4.7%-pts

Change

+5.9 %

+7.0 %

+20.5 %

+39.8 %

+0.8 %-pts

Percentages and figures may be subject to rounding differences. Percentages are calculated on the basis of EUR thousand.

Welcome

Heinrich Fritzlar, COO	Mario Freis, CEO	Frank Burow, CFO
- Born 1973	- Born 1975	- Born 1972
- More than 20 years of experience­	- More than 25 years of ­experience	- More than 20 years of experience­
in the fields of insurance­ and	in the ­distribution of financial	in finance, accounting­	and
IT consulting	services	controlling
- With OVB since 2022	- With OVB since 1995	- With OVB since 2010

Welcome

Dear shareholders, ladies and gentlemen,

We have made a successful start to the 2024 financial year. Brokerage income increased

significantly­compared to the same quarter in the previous year by 16.1 per cent to Euro 96.8 million. All three of the Group's segments recorded significant sales growth. In Germany, sales growth was 6.8 per cent, while brokerage income in the Central and Eastern Europe segment rose sharply by 16.5 per cent. The Southern and Western Europe ­segment was the most ­dynamic in the first quarter of 2024, with an increase in sales of 20.5 per cent compared to the same quarter in the previous year.

Across Europe, the number of clients increased by 6.5 per cent to Euro 4.55 million in the reporting period. In the first three months of 2024, the OVB sales team saw growth of 2.7 per cent to 5,939 full-time financial advisors.

Consolidated net profit after non-controlling interests amounted to Euro 4.4 million, up 87.2 per cent on the previous year. Accordingly, earnings per share almost doubled, from Euro 0.16 to Euro 0.31.

As we expected, growth momentum continued to increase in all three segments. The significant sales growth was accompanied by a sharp rise in operating income.

We are well on track to achieve the targets we previously communicated for the current year and expect the positive trend in sales to continue. To take account of the continuing uncertainties over macroeconomic developments, OVB is forecasting brokerage income in a range between Euro 360 million and Euro 385 million for the Group for the 2024 financial year. In view of the expenses associated with the current "OVB Excellence 2027" strategy, operating income of between Euro 17 million and Euro 20 million is anticipated.

Yours,

Mario Freis	Frank Burow	Heinrich Fritzlar
CEO	CFO	COO

04

05

OVB on the capital market

OVB on the capital market

At year-end 2023, the German stock index (DAX) closed trading at 16,752 points. The benchmark index thus recorded a positive performance of 20.3 per cent over the past year as a whole. Despite a challenging ­environment with international conflicts, inflation and a turnaround in interest rates, the economic development in the USA and China as key sales markets for Germany and the prospects of interest rate cuts fuelled the stock market rally.

In the first three months of 2024, the DAX climbed to new record highs and ended the first quarter at a record closing price of 18,492 points. Compared to the end of 2023, this corresponds to a further increase of 10.4 per cent, which was largely based on market participants' continued hopes of interest rate cuts and rising corporate profits in the near future. In addition, positive expectations for growth in the field of artificial intelligence are cited as price drivers.

SIGNAL IDUNA Lebensversicherung a. G. 31.67 %

Free float 3.01 %

WKN/ISIN Code

Stock symbol / Reuters / Bloomberg

Class of shares

Number of shares

Share capital

Xetra price (closing prices)

Prior year-end

High

Low

Last

Market capitalization

628656/DE0006286560

O4B/O4BG.DE/O4B:GR

No-par ordinary bearer shares

14,251,314

Euro 14,251,314.00

Euro 18.80	(29/12/2023)
Euro 20.40	(13/02/2024)
Euro 18.30	(06/02/2024)
Euro 19.80	(28/03/2024)
Euro 282 million	(28/03/2024)

SIGNAL IDUNA Krankenversicherung a. G. 21.27 %

Baloise Beteiligungsholding GmbH 32.57 %

Generali CEE Holding B.V. 11.48 %

Shareholder structure of OVB Holding AG as of 31/03/2024

The OVB Holding AG share closed trading at Euro 18.80 at year-end 2023. In the first three months of 2024, the share price ranged between Euro 18.30 and Euro 20.40. As of the closing date of this report, the share price was Euro 19.80. Only 3.0 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.

After OVB had returned to the in-person format for its Annual General Meeting in financial year 2023, the shareholders' meeting on 12 June 2024 will also be held in person again. The dividend proposal is Euro 0.90 per share. The total amount of dividends to be paid out would thus come to Euro 12.83 million.

Business activity | Macroeconomic environment | Interim consolidated management report

Interim consolidated management report of OVB Holding AG for the period from 1 January to 31 March 2024

Business activity

As the management holding company, OVB Holding AG is at the top of OVB Group. OVB stands for cross-thematic financial advice based on a long-term approach. Private households in Europe are the key target group. The Company cooperates with more than 100 high-capacity product partners and fulfils its clients' individual needs with competitive products, starting at basic protection for financial security as well as asset and financial risk protection, followed by retirement provision, asset generation and wealth management.

OVB brokers financial products in 16 European countries at present. OVB's 5,939 full-time financial advisors support 4.55 million clients. The Group's broad Europe- an positioning stabilises its business performance and opens up growth potential. OVB's currently 16 national markets are different in terms of structure, development status and size. OVB has a leading market position in several of these countries. In the course of demographic transition, the number of senior citizens in Europe rises as the number of young people is going down. Public social security systems are increasingly being overbur- dened. Personal counselling is gaining in importance, especially in economically challenging times from which private households in particular are suffering. Therefore, OVB continues to see considerable potential for the services it provides.

The cross-thematic advice of clients through all stages of their lives is based on a comprehensive, tried and tested approach: It starts with the identification and analysis of each client's financial situation. The financial advisors particularly ask for the client's wishes and goals and then create an individually tailored solution in consideration of personal financial resources, a solution with a long-term horizon that is both affordable and sufficiently flexible. OVB accompanies its clients over many years. Service meetings with clients are held on a regular basis in order to consistently adjust our clients' financial planning to their current situation in life. This effort results in protection and provision concepts suited to each client's demands and respective phase of life.

OVB has pushed digitalisation in a targeted approach over the past years and accelerated the expansion of the necessary technical prerequisites for digitally supported advisory services. Thanks to targeted investments, complete solutions for video advice and digital online business transactions are available at all OVB subsidiaries.

The professional training of the financial advisors, the analysis of client demand and the resulting product ­recommendations are based on the general conditions prevailing in the respective market. The continuous

advancement­of these issues is given great emphasis. OVB adjusts swiftly to any future regulatory or qualitative requirements.

In the reporting period, OVB Group had an average of 777 employees (previous year: 747 employees) in the holding company, the head offices of the subsidiaries and the service companies that control and manage the Group.

In the 2023 financial year, OVB launched its new strategy period "OVB Excellence 2027" and started the implementation of strategic measures. Focus topics are the areas "Sales and Career Excellence", "Expansion and Innovation", "People and Organisation" and "Operational Excellence".

Macroeconomic environment

OVB currently operates in 16 European countries divided into three regional segments: OVB's Central and ­Eastern Europe segment comprises the national markets Croatia, Poland, Romania, Slovakia, Slovenia, the Czech Republic, Ukraine and Hungary; the Group generated roughly 56.0 per cent of its sales in this segment in the previous year. 16.6 per cent of OVB Group's sales were accounted for by the German market in 2023. The national markets Belgium, France, Greece, Italy, Austria, Switzerland and Spain constitute the Southern and Western Europe segment, contributing some 27.4 per cent to OVB Group's brokerage income in 2023. With the exception of Switzerland, these countries belong to the euro- zone. OVB thus generates more than 80 per cent of its brokerage income outside Germany. Against this back- drop, it is important to consider the macroeconomic development in Europe for an assessment of the business performance. Among the relevant factors are economic growth, the development of the job market and changes in the real income of private households.

International conflicts will continue to pose a challenge in 2024. While the war in Ukraine continues, the conflict in the Middle East, exacerbated by the attack of Hamas on Israel and the interference of other parties, including Iran, threatens an additional conflagration. This in turn leads to global supply chain disruptions and higher commodity prices. Despite the geopolitical crises, persistently high inflation and increased interest rates, the global economy is proving to be very resilient.

In its World Economic Outlook from April 2024, the International Monetary Fund (IMF) sees global economic growth at 3.2 per cent for the past financial year. Gross domestic product is also expected to increase by 3.2 per cent in 2024. One positive factor was consumption by

06

07

Interim consolidated management report | Macroeconomic environment

private households, which in many industrialised countries have savings - including from the period of the pandemic - and boosted the economy through their ­demand. Significant economic growth in the United States has also fuelled the global economy.

The IMF experts estimate economic growth of 0.4 per cent for the eurozone in 2023. Further growth is expected for the current financial year, even if the lagging effects of restrictive monetary policy and energy costs as well as the planned budget consolidation are weighing on economic activity. Gross domestic product is expected to increase by a total of 0.8 per cent in financial year 2024.

According to the IMF, the economic performance in ­Germany dropped 0.3 per cent in 2023. Growth of merely 0.2 per cent is forecast for the current financial year. The reason for this is the persistently weak consumer sentiment in this country.

A decline of inflation rates can be observed, with the advanced economies returning to their inflation targets earlier than the emerging and developing countries.

Key macroeconomic indicators

The IMF has calculated a price increase of 6.8 per cent for the 2023 financial year. In the eurozone, it came to

5.4 per cent in the past financial year but is expected to fall to 2.4 per cent in 2024 and 2.1 per cent in 2025. Price increases in Germany still amounted to 6.0 per cent in 2023 and will also fall to 2.4 per cent in 2024 and 2.0 per cent in 2025, according to the IMF.

In terms of monetary policy, the past year was dominated by multiple significant interest rate hikes by central banks in order to combat high inflation rates. Most ­recently, the ECB raised the interest rate for the main refinancing operations and the interest rates for the marginal lending facility and the deposit facility to 4.50 per cent, 4.75 per cent and 4.00 per cent respectively, on 20 September 2023. The ECB is maintaining its restrictive monetary policy at the start of the 2024 financial year and decided not to change the key interest rates at its meetings on 25 January, 7 March and 11 April. The situation on the labour market remains robust.

High inflation rates reduce the available resources of private households for seeing to private financial ­provision and protection after spending on essentials.

Croatia

Czech Republic

Hungary

Poland

Romania

Slovakia

Slovenia

Ukraine

Eurozone

Germany

Austria

Belgium

France

Greece

Italy

Spain

Switzerland

Real GDP (change in %)

2023		2024f		2025f
2.8	3.0	2.7
-0.4	0.7	2.0
-0.9	2.2	3.3
0.2	3.1	3.5
2.1	2.8	3.6
1.1	2.1	2.6
1.6	2.0	2.5
5.0	3.2	6.5
0.4	0.8	1.5
-0.3	0.2	1.3
-0.7	0.4	1.6
1.5	1.2	1.2
0.9	0.7	1.4
2.0	2.0	1.9
0.9	0.7	0.7
2.5	1.9	2.1
0.8	1.3	1.4

Consumer prices (change in %)*

2023		2024f		2025f
8.4	3.7	2.2
10.7	2.1	2.0
17.1	3.7	3.5
11.4	5.0	5.0
10.4	6.0	4.0
11.0	3.6	3.9
7.4	2.7	2.0
12.9	6.4	7.6
5.4	2.4	2.1
6.0	2.4	2.0
7.7	3.9	2.8
2.3	3.6	2.0
5.7	2.4	1.8
4.2	2.7	2.1
5.9	1.7	2.0
3.4	2.7	2.4
2.1	1.5	1.2

Unemployment rate in % [Unemployed / (Employed + Unemployed)]

2023		2024f		2025f
6.2	5.8	5.5
2.6	2.6	2.5
4.1	4.4	4.2
2.8	2.9	3.0
5.6	5.6	5.4
5.8	5.9	5.9
3.7	3.7	3.8
19.1	14.5	13.8
6.5	6.6	6.4
3.0	3.3	3.1
5.1	5.4	5.2
5.5	5.5	5.5
7.4	7.4	7.0
10.9	9.4	8.7
7.7	7.8	8.0
12.1	11.6	11.3
2.0	2.3	2.4

f = forecast; * = changes in consumer prices presented as annual average Source: IMF World Economic Outlook (April 2024)

Macroeconomic environment | Business performance | Interim consolidated management report

Especially lower-income households no longer have the means to take out new contracts. The tense financial situation can also lead to the cancellation of existing contracts.

On the other hand, escalated risks in the political and economic environment give rise to considerably increased willingness among private households to invest in financial provision and protection, and the demand for advice is rising. Investors have also become increasingly aware of the importance of retirement provision. In demand are above all direct investments in funds and unit-linked life or pension insurance. OVB offers a wide variety of products, from high-potential investments to more safety-oriented capital invest- ments. OVB's independent financial advisors can put together offers for investors that suit their personal situation and risk tolerance.

In addition, OVB sees considerable growth in many countries for products covering biometric risks such as death, disability, illness or the need for long-term care. Furthermore, a growing number of investors attach importance to sustainable investments that support ecological or social objectives either directly or indirectly.

OVB is certain that the demand for cross-thematic, competent and comprehensive personal advice on all kinds of financial matters is increasing: The product offering for private households is almost inscrutable and state support plans are hard to comprehend. In addition, financial decisions once made must be routinely reviewed and adapted if necessary to changing needs and situations in life but also due to changing market conditions.

The market for private risk protection and provision therefore continues to offer long-term potential and sound opportunities for growth.

Business performance

OVB Group recorded brokerage income in the amount of Euro 96.8 million in the first quarter of financial year 2024. With an increase of 16.1 per cent, the Group exceeded the prior-year amount of Euro 83.4 million significantly. This positive performance is based on growth achieved in all three operating segments.

As of the interim reporting date 31 March 2024, OVB supported 4.55 million clients in 16 countries of Europe (previous year: 4.27 million clients). Compared to the prior-year reporting date, the total number of financial advisors working for OVB gained

2.7 per cent from 5,785 to 5,939 financial advisors at the end of the first quarter of 2024.

The structure of new business in the Group has changed only slightly compared to the prior-year quarter. Unit- linked provision products continued to account for the

Breakdown of new business 1-3/2024(1-3/2023)

Unit-linked provision products 31.1 % (32.9 %)

State-subsidised provision products 9.3 % (8.1 %)

Building society savings contracts/financing 5.6 % (6,1 %)

Property, accident and legal expenses insurance 18.9 % (17.0 %)

Health insurance 2.3 % (2.6 %)

Investment funds 7.6 % (6.2 %)

Other provision products 25.1 % (27.1 %)

Real property 0.1 % (0.0 %)

largest share of new business at 31.1 per cent, compared to 32.9 per cent in the previous year. Other provision products contributed 25.1 per cent of sales in the reporting period after 27.1 per cent in the first three months of 2023. Property, accident and legal expenses insurance increased its share and contributed 18.9 per cent, compared to 17.0 per cent in the previous year. State-subsidised provision products rose from 8.1 per cent to 9.3 per cent. The investment funds segment also improved, increasing its share from 6.2 per cent

08

09

Interim consolidated management report | Business performance | Profit/Loss

to 7.6 per cent. The building society savings / financing product group fell slightly from 6.1 per cent to 5.6 per cent and health insurance came to 2.3 per cent compared to 2.6 per cent in the previous year. The real ­property business remained at a low level.

Central and Eastern Europe

In the Central and Eastern Europe segment, brokerage income increased significantly by 16.5 per cent to Euro 52.7 million in the reporting period (previous year: Euro 45.2 million), based on an increase in sales in all national markets in the region except for Romania.

The number of financial advisors working for OVB in this region grew by 4.3 per cent from 3,549 as of the prior-­ year reporting date to 3,700 as of 31 March 2024.

They supported 3.15 million clients (previous year: 2.91 million clients).

Other provision products declined slightly compared to the same period of the previous year and contributed a

Brokerage income by region

Euro million, figures rounded

	96.8
83.4
	29.3
24.3
	14.8
13.8
	52.7
45.2
1-3/2023	1-3/2024

total of 32.8 per cent to new business (previous year:

1. per cent). Unit-linked provision products were also less in demand in comparison and came to a share of

1. per cent (previous year: 34.1 per cent). Property, accident and legal expenses insurance was more in de- mand and accounted for 21.1 per cent of new business (previous year: 17.5 per cent).

Germany

OVB also grew in the Germany segment, generating brokerage income of Euro 14.8 million, an increase of

6.8 per cent (previous year: Euro 13.8 million). At the end of the reporting period, 1,089 financial advisors were active in this country, 6.2 per cent fewer than the 1,161 financial advisors as of the end of the prior-year quarter. The number of actively supported clients was 610,757 as of the interim reporting date, compared to 613,588 clients one year earlier.

Particularly in demand were unit-linked provision products, increasing their share of new business from

30.3 per cent to 31.8 per cent. Property, accident and legal expenses insurance fell slightly to 13.5 per cent (previous year: 14.3 per cent). This product group was closely followed by other provision products with a con- tribution of 13.0 per cent (previous year: 12.3 per cent). The product group of state-subsidised provision products accounted for 11.5 per cent (previous year: 11.3 per cent) and investment funds grew to 11.2 per cent (previous year: 10.6 per cent). The building society savings con- tracts / financing segment contributed 11.1 per cent to new business compared to 14.1 per cent in the previous year due to the persistently challenging interest rate environment.

Southern and Western Europe

In the reporting period, the Southern and Western Europe segment recorded a strong increase in brokerage income of 20.5 per cent to Euro 29.3 million (previous year:

Euro 24.3 million). The number of financial advisors ­increased by 7.0% from 1,075 to 1,150, supporting a total of 792,122 customers in the segment's seven countries as of 31 March 2024, compared to 747,983 at the end of the first quarter of 2023.

The share of unit-linked provision products in new

business­ climbed from 31.4 per cent in the previous year to 36.1 per cent. With an increase to 29.5 per cent, state-subsidised provision products also raised their contribution to sales (previous year: 25.6 per cent). Property, accident and legal expenses insurance reduced their share from 17.1 per cent to 15.6 per cent. Other provision products fell to 11.2 per cent (previous year: 17.6 per cent).

Profit / Loss

Southern and Western Europe Germany

Central and Eastern Europe

OVB Group generated brokerage income of Euro 96.8 million in the first three months of financial year 2024, equivalent to a significant growth of 16.1 per cent com-