OVB : Nine-Month Report 1 January - 30 September 2023

Group interim report -   First Nine Months

1 January - 30 September 2023

OVB profile

With more than 4.4 million clients, over 5,800 full-time financial advisors and business operations in 16 national markets, OVB is one of the leading financial intermediary groups in Europe.

Contents

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Welcome

OVB on the capital market

Interim consolidated management report

IFRS Interim consolidated financial statements

Notes to the interim consolidated financial statements

Responsibility statement

Review report

04 Welcome

06 OVB on the capital market

07 Course of business

1. Macroeconomic environment

1. Business performance

1. Profit/Loss
2. Financial position

1. Assets and liabilities

1. Personnel
2. Supervisory Board

1. Subsequent events

1. Opportunities and risks
2. Outlook

1. Consolidated statement of financial position
2. 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 9M 2023

Key operating figures

Clients

Financial advisors

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 - 30/09/2022

4.26 m

5,648

247.2

01/01 - 30/09/2022

15.4

6.2

9.2

0.64

01/01 - 30/09/2023

4.46 m

5,896

260.3

01/01 - 30/09/2023

11.4

4.4

9.1

0.64

Change

• 4.7 %
• 4.4 %
• 5.3 %

Change

• • 25.7 %
• 1.8 %-pts
• • 0.2 %
  • 0.2 %

Key figures for the regions 9M 2023

Central and Eastern Europe

Clients

Financial advisors

Brokerage income

Earnings before interest and taxes (EBIT)

EBIT margin

Germany

Clients

Financial advisors

Brokerage income

Earnings before interest and taxes (EBIT)

EBIT margin

Southern and Western Europe

Clients

Financial advisors

Brokerage income

Earnings before interest and taxes (EBIT)

EBIT margin

Unit	01/01 -
30/09/2022
Number	2.92 m
Number	3,365
Euro million	127.5
Euro million	13.1
%		10.3
Unit	01/01 -
30/09/2022
Number	615,967
Number	1,213
Euro million	45.1
Euro million	5.2
%		11.5
Unit	01/01 -
30/09/2022
Number	729,965
Number	1,070
Euro million	74.6
Euro million	5.2
%		7.0

01/01 - 30/09/2023

3.08 m

3,658

146.1

13.1

8.9

01/01 - 30/09/2023

613,767

1,172

42.7

3.2

7.4

01/01 - 30/09/2023

767,136

1,066

71.4

2.3

3.3

02

03

Change

• • 5.6 %
  • 8.7 %
  • 14.6 %
  • 0.5 %
• 1.4 %-pts

Change

• • • 0.4 %
    • 3.4 %
    • 5.2 %
  • 39.0 %
• 4.1 %-pts

Change

• • 5.1 %
  • 0.4 %
  • 4.2 %
  • 55.5 %
• 3.8 %-pts

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

Welcome

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

Welcome

Dear shareholders, ladies and gentlemen,

OVB Holding AG increased its sales by 5.3 per cent to Euro 260.3 million in the first nine months of 2023, with momentum picking up in the third quarter.

Thanks to the dedication of the entire OVB team, we can look back on a very successful third quarter. We boosted our brokerage income by a significant 15.8 per cent year on year between July and September 2023. All segments contributed to this. Germany achieved sales growth of 7.2 per cent, with the Southern and Western Europe region seeing a 5.6 per cent rise in brokerage income. The Central and Eastern Europe segment was the most dynamic in the third quarter of 2023, with sales growth of 24.2 per cent.

Operating income was in line with planning in the first nine months of 2023 at Euro11.4 million, compared to Euro 15.4 million in the previous year. As well as cost increases due to inflation and higher training costs, this is also due to expenses for the measures of our new corporate strategy "OVB Excellence 2027". Fortunately, we significantly improved our financial result and thus generated earnings per share on par with the previous year.

Despite ongoing uncertainties, we remain optimistic given our performance in the financial year so far. If the momentum seen in the third quarter is maintained, we believe that Group brokerage income for the 2023 financial year in the range of Euro 350 to Euro 360 million is attainable and still anticipate operating income of between Euro 16 and Euro 19 million.

Yours,

Mario Freis	Frank Burow	Heinrich Fritzlar
CEO	CFO	COO

04

05

OVB on the capital market

OVB on the capital market

The German stock index (DAX) closed trading at year- end 2022 at 13,924 points. The economic framework in the year 2023 continues to be determined by war, inflation and the turnaround in interest rates. The German stock market still recorded a very good performance at the beginning of the year, climbing to 15,629 points by 31 March 2023. At the end of the second quarter, the DAX stood at 16,148 points, boosted by falling inflation rates and hopes for a less tight monetary policy. The index initially held its ground in the third quarter as well and even recorded a new all-time high of 16,470 points on 28 July 2023. From 3 August 2023, the DAX then slipped below the 16,000 mark and fell to a quotation of 15,387 on 30 September 2023, the closing date for this report, due to persistently high interest rates and increasing economic concerns in this country. Compared to the beginning of the year, this still equals an increase of 10.5 per cent.

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 capitalisation

628656/DE0006286560

O4B/O4BG.DE/O4B:GR

No-par ordinary bearer shares

14,251,314

Euro 14,251,314.00

Euro 22.00	(30/12/2022)
Euro 25.40	(11/05/2023)
Euro 21.20	(18/09/2023)
Euro 21.40	(30/09/2023)
Euro 305 million	(30/09/2023)

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 30/09/2023

The share of OVB Holding AG closed the year 2022 with a price of Euro 22.00. Over the first three months of 2023, the share price ranged between Euro 22.00 and Euro 23.60. At the end of the first quarter, the price was Euro 22.60. Starting in April, the share price went up considerably, peaking with a closing price of Euro 25.40 on 11 May 2023 - this year's high so far. As of the half- year closing date, the share was priced at Euro 23.80. Affected by the ongoing interest rate hikes and the negative economic outlook for the German economy, the OVB share recorded a decline in the third quarter as well. As of 30 September 2023, the share price was Euro

21.40. 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 three consecutive virtual general meetings of shareholders, the Annual General Meeting of OVB ­Holding AG on 14 June 2023 was the first meeting held with the physical presence of shareholders again. 96.99 per cent of the share capital was represented.

In his keynote speech, CEO Mario Freis talked about the successful 2022 financial year and put the sound performance of OVB into the context of the now completed strategy period. An outlook on the follow-up strategy "OVB Excellence 2027" was presented as well. A large majority of the shareholders followed the Company's proposals in their resolutions, approving among other items the payment of a dividend in the amount of Euro 0.90 per share. This equals a dividend payout

of Euro 12.83 million.

Course of business | Macroeconomic environment | Interim consolidated management report

Interim consolidated management report of OVB Holding AG for the period from 1 January to 30 September 2023

Course of business

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 5,896 full-time financial advisors support 4.46 million clients. The Group's broad European 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 when 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: The identification and analysis of each client's financial situation form the basis of counselling. 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,

1. solution with a long-term horizon that is both afforda- ble 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 con- cepts suited to each client's demands and respective phase of life.

OVB has pushed digitisation 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

recommendations­are based on the general conditions prevailing in the respective market. The continuous ­advancement of 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 748 employees (previous year: 705 employees) in the holding company, the head offices of the subsidiaries and the service companies that control and manage the Group.

In the context of the Annual Report 2022 published at the end of March 2023, OVB introduced its new strategy "OVB Excellence 2027" as the result of a comprehensive strategy development process. Focus topics are the areas "Sales and Career Excellence", "Expansion and Inno- vation", "People and Organization" 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, Czechia, Hungary, Poland, Romania, Slovakia, Slovenia and Ukraine; the Group generated roughly 53 per cent of its sales in this segment in the previous year. 18 per cent of OVB Group's sales were accounted for by the German market in the past financial year. The national markets Austria, Belgium, France, Greece, Italy, Spain and Switzerland constitute the Southern and Western Europe segment, contributing some 29 per cent to OVB Group's brokerage income in 2022. With the exception of Switzerland, these countries belong to the eurozone. OVB thus generates more than four fifths of its brokerage income outside Germany. Against this backdrop 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 income situation of private households.

In 2023, the impact of Russia's war of aggression against Ukraine continues to be felt around the world. Humanitarian suffering, geopolitical tensions and supply chain problems remain. Most recently, international conflicts have been further exacerbated by the attack on Israel carried out by the terrorist organisation Hamas.

06

07

Interim consolidated management report | Macroeconomic environment

Economically, persistently high inflation rates are significantly increasing the cost of living for private households. The monetary policy measures of the central banks - ­especially the repeated, sharp interest rate hikes - are slowing down economic growth and making financing options more expensive.

In its World Economic Outlook (October 2023), the

­International Monetary Fund (IMF) anticipates economic growth in the euro area to decelerate to 0.7 per cent for the full year 2023, compared to a 3.3 per cent increase in gross domestic product in 2022.

After Germany had slipped into a technical recession in the winter half-year 2022/2023, economic development stagnated in the second quarter of 2023. For the third quarter, however, the Federal Ministry of Economics and Climate Protection again expects a slight decline in gross domestic product. The IMF also forecasts a

0.5 per cent contraction in economic output in this country for 2023.

Key macroeconomic indicators

The decline in growth is accompanied by high inflation rates. According to the IMF (October 2023), consumer prices in the eurozone were up 8.4 per cent in 2022 based on annual average. Starting from this high level, inflation has slowed down in recent months. According to Eurostat, the statistical office of the European Union, the price increase for September 2023 was 4.3 per cent over the same month of the previous year and thus ­below 5 per cent for the first time this year. For the full year 2023, the IMF expects consumer prices in the euro area to rise by 5.6 per cent.

Rising inflation has prompted central banks around the world to tighten their monetary policies and consider further interest rate steps in the future. Most recently, during the period under review, the ECB resolved the tenth consecutive increase in key interest rates since July 2022 at its meeting on 20 September 2023. Since then, the interest rate for the main refinancing ope­ rations as well as the interest rates for the marginal lending facility and the deposit facility have been 4.50 per cent, 4.75 per cent and 4.00 per cent respectively.

Croatia

Czech Republic

Hungary

Poland

Romania

Slovakia

Slovenia

Ukraine

Eurozone

Germany

Austria

Belgium

France

Greece

Italy

Spain

Switzerland

Real GDP

Change in %

2022		2023f		2024f
6.2	2.7	2.6
2.3	0.2	2.3
4.6	-0.3	3.1
5.1	0.6	2.3
4.7	2.2	3.8
1.7	1.3	2.5
2.5	2.0	2.2
-29.1	2.0	3.2
3.3	0.7	1.2
1.8	-0.5	0.9
4.8	0.1	0.8
3.2	1.0	0.9
2.5	1.0	1.3
5.9	2.5	2.0
3.7	0.7	0.7
5.8	2.5	1.7
2.7	0.9	1.8

Consumer prices

Change in %*

2022		2023f		2024f
10.7	8.6	4.2
15.1	10.9	4.6
14.5	17.7	6.6
14.4	12.0	6.4
13.8	10.7	5.8
12.1	10.9	4.8
8.8	7.4	4.2
20.2	17.7	13.0
8.4	5.6	3.3
8.7	6.3	3.5
8.6	7.8	3.7
10.3	2.5	4.3
5.9	5.6	2.5
9.3	4.1	2.8
8.7	6.0	2.6
8.3	3.5	3.9
2.8	2.2	2.0

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

2022		2023f		2024f
6.8	6.3	5.9
2.1	2.8	2.6
3.6	3.9	3.8
2.9	2.8	2.9
5.6	5.6	5.4
6.2	6.1	5.9
4.0	3.6	3.8
24.5	19.4	10.6
6.7	6.6	6.5
3.1	3.3	3.3
4.8	5.1	5.4
5.6	5.7	5.7
7.3	7.4	7.3
12.4	10.8	9.3
8.1	7.9	8.0
12.9	11.8	11.3
2.2	2.1	2.3

f = forecast; * = changes in consumer prices presented as annual average

• = National definitions of the unemployment rate may vary Source: IMF World Economic Outlook (October 2023)

Macroeconomic environment | Business performance | Interim consolidated management report

At the meeting on 26 October 2023, it was decided	Breakdown of new business
to leave the key interest rates unchanged in October.	1-9/2023(1-9/2022)
The labour market situation remains robust.
High inflation reduces the available resources of pri-
vate households for their private financial provision
and protection after spending on essentials. Especially
many 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.
Contrary to that, the 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 are also increas-
ingly aware of the importance of retirement provision.
In demand are primarily direct investments in funds
and unit-linked life or pension insurance. OVB offers a
wide variety of products, from high-potential invest-
ments to more safety-oriented capital investments.
OVB's independent financial advisors can put together			Unit-linked provision products
individual offers for investors that suit their personal			34.5 % (32.6 %)
situation and risk tolerance.			State-subsidised provision products
In addition, OVB sees considerable growth in many
		8.0 % (8.8 %)
countries for products covering biometric risks such
as death, disability, illness or the need for long-term			Building society savings contracts / Financing
care. Furthermore, a growing number of investors			6.2 % (12.8 %)
­attach importance to sustainable investments that
support ecological or social objectives either directly			Property, accident and legal
or indirectly.			expenses insurance
OVB is certain that the demand for cross-thematic,			16.5 % (15.5 %)
competent and comprehensive personal advice on all			Health insurance
kinds of financial matters is increasing: The product			2.6 % (2.2 %)
offering for private households is almost inscrutable
and state support plans are hard to comprehend. In			Investment funds
addition to that, financial decisions once made must			5.8 % (6.3 %)
be routinely reviewed and adapted if necessary to
changing needs and situations in life but also to chang-			Other provision products
ing market conditions.			26.4 % (21.7 %)
The market for private risk protection and provision			Real property
therefore continues to offer long-term potential and			0.0 % (0. 1 %)
sound opportunities for growth.

08

09

Business performance

OVB Group generated brokerage income in the amount of Euro 260.3 million in the first nine months of financial year 2023. This equals 5.3 per cent growth over the prior-year brokerage income of Euro 247.2 mil- lion. This expansion was driven in particular by the strong performance of the Central and Eastern Europe segment.

By the end of September 2023, OVB supported 4.46 million clients in 16 countries of Europe, 4.7 per cent more than one year before (previous year: 4.26 million clients). The total number of financial advisors working for OVB gained 4.4 per cent from 5,648 as of the prior-­ year reporting date to 5,896 financial ­advisors as of 30 September 2023.

Interim consolidated management report | Business performance

The structure of the new business has changed only

and investment funds to new business decreased

slightly compared to the prior-year period: The share of

slightly while the share of health insurance increased

unit-linked provision products continues to make the

insignificantly. The real estate business remained at

largest contribution to turnover and increased from

an unchanged low level.

32.6 per cent in the prior-year period to 34.5 per cent.

Central and Eastern Europe

Other provision products also increased their share

to 26.4 per cent after 21.7 per cent in the previous

Brokerage income of the Central and Eastern Europe

year. Property, accident and legal expenses insurance

segment gained 14.6 per cent to Euro 146.1 million

accounted for 16.5 per cent of new business compared

(previous year: Euro 127.5 million) on account of sales

to 15.5 per cent in the first nine months of 2022. The

increases in almost all the region's national markets.

share of building society savings contracts / financing

The number of financial advisors working for OVB went

decreased form 12.8 per cent to 6.2 per cent due to the

up from 3,365 as of the prior-year reporting date by

increased interest rate level. The contribution of the

8.7 per cent to 3,658 financial advisors as of 30 Sep-

product categories state-subsidised provision products

tember 2023. They supported 3.08 million clients

(previous year: 2.92 million clients).

Brokerage income by region

Unit-linked provision products kept the lion's share of

Euro million, figures rounded*

new business at 35.6 per cent (previous year: 32.6 per

cent), followed by other provision products that increased

to 32.7 per cent (previous year: 29.2 per cent). The share

247.2

260.3

of property, accident and legal expenses insurance was

up to 17.3 per cent (previous year: 16.5 per cent). In

contrast, the product category building society savings

contracts / financing contracted due to the changed

74.6

interest rate environment. Here, the share in new busi-

71.4

ness dropped from 12.9 per cent to 5.9 per cent.

Germany

Brokerage income generated in the Germany segment

45.1

lost 5.2 per cent to Euro 42.7 million (previous year:

42.7

Euro 45.1 million). With 1,172 financial advisors,

3.4 per cent fewer advisors worked for OVB in Germa-

ny as of the reporting date 30 September 2023 than

one year before (previous year: 1,213 advisors). The

number of actively supported clients as of 30 Septem-

127.5

ber 2023 was 613,767, compared to 615,967 clients

one year before.

146.1

Due to the changed interest rate environment, the

share in new business accounted for by the building

society­

savings / financing product group decreased

significantly from 24.0 per cent to 13.0 per cent. Unit-

1-9/2022

1-9/2023

linked provision­

products gained in importance and

contributed­ a total of 30.4 per cent to new business

(previous year: 24.0 per cent). Property, accident and

legal expenses insurance also increased, accounting for

14.3 per cent (previous year: 12.0 per cent). The share

Southern and Western Europe

of other provision products climbed to 13.0 per cent

Germany

(previous year: 11.6 per cent). State-subsidised provi-

sion products came to 12.0 per cent of the new business

Central and Eastern Europe

(previous year: 11.3 per cent). Investment funds were

on a decline while the share of health insurance was up.

Southern and Western Europe

Brokerage income in the Southern and Western Europe

segment decreased 4.2 per cent to Euro 71.4 million

(previous year: Euro 74.6 million). The national markets

of Belgium, Switzerland and Austria recorded increases

whereas the sales development of the operating sub-

* rounding differences may occur during summation

sidiaries in Italy, Spain, France and Greece declined.