I N T E R I M R E P O R T A S O F 3 0 J U N E

Transcription

1 I N T E R I M R E P O R T A S O F 3 J U N E 2 5

2 Table of Contents 2 Page Introduction 3 Overview of the First Half-Year 25 4 Business Development 5 Corporate Governance 9 cash.life AG in Figures Income Statement 1 Balance Sheet 11 Statement of Equity 12 Cash Flow Statement 13 Change of Accounting Standards to IFRS 14 Accounting and Valuation Principles 15 Equity and Net Income Reconciliation 16 Notes Income Statement 18 Balance Sheet 2 Cash Flow Statement 22 Other Disclosures 23 Financial Calendar 25 Investor Relations Contact 26

3 Introduction Introduction 3 Dear Shareholders, cash.life AG continues to grow steadily. Indeed, all of our key figures: purchased volume, policies sold to funds, volume of policies managed, servicing revenue, and net income, developed positively. In this respect, our focus on the German second-hand endowment policy market for life insurance has paid-off. Since our founding in 1999, which also marked the start of the German second-hand endowment policy market as a whole, we have been the clear market leader with an unique selling position. Our stated goal is to expand and solidify this position. Our know-how in policy valuation and management is the core of our success. The combination of purchases for our own accounts and a policy pool, our trading portfolio, affords us a considerable advantage over other market participants. In the past half-year, we were able to more than double our purchased volume, which amounted to EUR million, compared to the prior year period. We now manage insurance policies valued at EUR 927. million and have made tremendous progress towards our target of exceeding the one billion euro mark for managed portfolios. The dynamic growth rates in business volume are reflected in our extremely positive earnings development. In the first half-year, pre-tax profit grew by 27.2 percent to EUR 4.2 million, and cash.life AG increased its net income to EUR 2.6 million. Aside from our customers, agents and insurance companies, our shareholders in particular have been able to profit from the developments at cash.life AG. We wish to maintain and expand our leading role in the German second-hand endowment policy market. There is tremendous market potential ahead of us: more than one in two policies is terminated early. In 24, the German insurance companies paid EUR 12.6 billion for encashments. Around half of these matched our purchasing criteria, which implies a market potential of around EUR 6 billion per year, and only around 7 percent of the population knows about the option of selling their endowment policies as an alternative to encashment. Our most important goal is to improve recognition of the second-hand endowment policy market. A part of our strategy is to increase the familiarity of the capital market with cash.life AG. To achieve this, we plan to increase our free-float from currently 1.5 percent to over 3 percent in the future. We have contracted Berenberg Bank as well as HSBC Trinkaus & Burkhardt to carry-out the transaction. We have done our homework: in the past year, we merged the former cash.life AG into its parent company, the former adv.orga Beteiligungen Aktiengesellschaft (renamed cash.life AG following the merger). With this step and the disposal of our other participations, we have focused on our core business, the second-hand endowment policy market. We have been listed in the Prime Standard of the Deutsche Börse since 27 May 25. This listing increases our transparency requirements. We will therefore report our results according to the International Financial Reporting Standards (IFRS) beginning with this interim report. We are confident that we will continue to provide you with good results. We would like to thank you for your trust in our company, and we would like to thank our employees for their commitment and engagement.

4 Overview of the First Half-Year 25 Overview 4 IFRS Change in % Revenue in EUR m Purchased volume in EUR m Pre-tax profit in EUR m Net income in EUR m Earnings per share in EUR Employees (average) Policies under management (as of balance sheet date) in EUR m of which trading portfolio in EUR m of which policies owned by third parties in EUR m

5 Business Development Business Development 5 1. Overall development of the secondhand endowment policy market The second-hand endowment policy market is a growth market: more than one in two of the current 97.4 million life insurance contracts (as of 31 December 24 according to the Gesamtverband der Deutschen Versicherungswirtschaft e.v., GDV (Association of German Insurers) are terminated prematurely. In 24, insurers paid EUR 12.6 billion in encashments for terminated policies. What are the reasons for this development? As one of the main pillars of private retirement schemes, life insurance contracts have a long term to maturity averaging 28 years. Within this time period, one s personal situation in life as well as one s financial planning can be drastically altered. In May 24, cash.life AG contracted the Institut für Demoskopie Allensbach (Institute for Public Opinion Allensbach) to research the reasons for the early termination of life insurance policies. The result: 25 percent of those surveyed use the funds from their life insurance to pay-off debt. A total of 16 percent of those surveyed terminate for personal reasons or due to unemployment. Divorce, the search for more attractive investment alternatives, and lack of security of life insurance investments are additional reasons for early termination. Demand for a lucrative alternative to early termination is large, and so therefore is the market potential for cash.life AG: based on our estimation, around half of the yearly terminated life insurance policies meet our purchasing criteria. The market is thus around EUR 6 billion per annum. Given this assumption, policies purchased by cash.life AG in the 24 financial year amounted to EUR million correspond approximately 3.8 percent of the market. We estimate the total German Traded Endowment Policy (TEP) market in 24 at around EUR 3 million. This implies a market share of some 75 percent for cash.life AG. However, concrete figures from our competitors are not publicly available. Demand for second-hand endowment policies from investors and closed funds is also high, as this investment vehicle provides a comparatively secure financial investment. In 23 and 24, life insurance funds became the strongest growth segment for closed funds: their total market share increased from 3.7 percent in 23 to around 1 percent in 24. cash.life AG has witnessed above-average benefits from the growth in this fund segment; due to its purchasing volume and market know-how related to policy purchasing and management, cash.life AG has attained an unique selling position in the German traded endowment policy market. 2. Purchasing endowment policies The prerequisite for our continued growth is an increase in our endowment policy purchasing volumes. We showed tremendous success in this area in the first half-year 25: with policy purchases amounting to EUR million, this represents growth of 14.2 percent compared to the prior year period, more than ever before. In the first half-year 24, we purchased policies valued at EUR 66.4 million. We obtain our endowment policies from end customers as well as from a wide range of free agents (insurance agents, banks and savings banks, financial advisors, bankruptcy advisors, etc.). We intend to expand the use of both purchasing sources in the future. Furthermore, we are examining the possibility of introducing a legal obligation to inform insurance customers in Germany who intend to terminate their policies about their options, as is already done in Great Britain (for further details, please refer to chapter 9 Outlook).

6 Business Development 6 3. Endowment policy trading portfolio and management cash.life AG initially purchases all endowment policies for its own trading portfolio account. Investment funds then purchase those policies which meet their investment criteria from the trading portfolio. Following the sale of these policies to the investment funds, cash.life AG manages these portfolios for the entire duration of the fund ( servicing ) and receives a management fee ( servicing fee ). Up to this point, cash.life AG has signed contracts to supply nine closed funds with policies with a prospective investment volume of some EUR 1.2 billion; six of these funds have already successfully completed their investment phases, with a total volume of investment amounting to around EUR 5 million. The three remaining funds are still being supplied with policies with an outstanding investment volume of around EUR 54 million. The issuing houses are MPC Capital AG and König & Cie. GmbH & Co. KG. We have also taken over the management of the policies for all of these funds. Furthermore, we signed a contract with MPC Rendite-Fonds Britische Leben plus GmbH & Co. KG in the first half-year 25, which involves managing a fund of British policies; according to the prospectus, these policies have an investment volume of 41.3 million British Pounds (approx. EUR 61.8 million). As of 3 June 25, cash.life AG managed a total portfolio of EUR 927. million. Of this amount, EUR 22.2 million were in the trading portfolio and EUR 76.8 million were policies owned by third parties. Thus, policy volume under management has increased by 22.3 percent since the beginning of the year: as of 31 December 24, we managed encashment values of EUR million, of which EUR million was in our trading portfolio and EUR million was managed for funds. We plan to maintain trading portfolio policies of some EUR 15. to 25. million in the future, in order to be able to react flexibly to the demand for endowment policies. This flexibility provides us with a decisive competitive advantage. Furthermore, these policies provide a positive earnings contribution, because their return is considerably higher than the cost of refinancing the trading portfolio. 4. Employees cash.life AG is growing steadily. The number of inquiries handled by our customer service department is continuously increasing, and we are evaluating more policies, making more purchases and managing an ever-growing trading portfolio. Despite the efficient processes and developments of our IT-system, we require more employees in order to generate further growth based on high quality and service standards. We are utilising the additional personnel primarily in the areas of policy purchasing and fund management. The average number of employees increased by 13 in the first half-year 25 to 46 employees.

7 Business Development 7 5. Revenues cash.life AG s revenues result primarily from the re-sale of policies and from management fees for servicing the fund portfolios. In the first half-year 25, revenues increased by 19.5 percent compared to the prior year period and amounted to EUR million (first half-year 24: EUR 18.1 million). A comparison of the second quarter 25 with the same period last year shows an even greater increase: in the second quarter of 25, revenues grew by 39.7 percent to EUR 61.5 million (second quarter 24: EUR 44. million). Servicing revenues witnessed a particularly dynamic development: the considerable increase in managed policies resulted in a rise in servicing fees in the first half-year 25 to EUR 1.5 million (first half-year 24: EUR.8 million). In the second quarter, revenues grew to EUR.8 million (second quarter 24: EUR.5 million). Revenues from the sale of insurance policies also increased: in the first half-year, revenues grew by 19.7 percent to EUR million (first half-year 24: EUR 16.6 million). Of this amount, EUR 6.6 million occurred in the second quarter, which represents growth of 39.2 percent (second quarter 24: EUR 43.6 million). 6. Net income Net income in the first half-year 25 grew by 13.2 percent to EUR 2.6 million (first half-year 24: EUR 2.3 million). Thus, cash.life AG continues to grow in this area as well. 7. Asset and financial situation In the first half-year 25, the trading portfolio increased from EUR million to EUR 22.2 million. At the same time, short-term liabilities decreased from EUR million to EUR million. Equity increased from EUR 2.2 million to EUR 22.8 million. 8. Significant events after 3 June 25 On 26 July 25, the German Federal Constitutional Court ruled that insurers must allow customers to have a higher participation in their hidden reserves, and at the same time encouraged more transparency for bonus payments. More transparent bonus payments ease the determination of prices by second-hand endowment policy companies actuaries, which can have a positive effect on the purchasing price.

8 Business Development 8 9. Outlook We intend to continue growing in terms of purchasing volume, the size of our managed portfolio, and our earnings. Our shareholders should also profit from this success in the future with a suitable dividend payout ratio. Due to the growth in policy management for investment funds, servicing revenues will continue to rise. These involve stable and calculable long-term revenues, which we receive over the entire term of the fund. The start of marketing for an open fund initiated by us is planned for the near future. We continue to focus our efforts on increasing the recognition of the second-hand endowment policy market in Germany. At present, only some 7 percent of the population is aware of this better alternative to termination. A significant building block for our public relations strategy involves increasing the capital markets familiarity with our company. In this respect, we are planning to expand our free-float from currently 1.5 percent to over 3 percent. In June, we provided a mandate to Berenberg Bank and HSBC Trinkaus & Burkhardt to carry out this transaction. We support the possibility of introducing a legal obligation to inform insurance customers in Germany who intend to terminate their policies, similar to that already in place in Great Britain. In Great Britain, where insurers have been required to inform their customers about the possibility of selling their policies since 22, the recognition of the second-hand endowment market increased from 35 percent to 85 percent over the course of two years. The Bundesverband für Vermögensanlagen im Zweitmarkt Lebensversicherungen e.v., BVZL (Association of Investments in the Second-Hand Market of Endowment Policies) has taken up the goal in Germany of implementing the obligation to inform customers about the option of selling their policies. We anticipate that in the future, we will be able to generate a larger share of purchased policies from free agents, banks and savings banks. With this goal in mind, we are investing in marketing personnel that can service these target groups on site. We currently maintain a network of 8, active agents, which is steadily growing.

9 Corporate Governance Corporate Governance 9 The Management Board and Supervisory Board of cash.life AG maintain a trusting working relationship which benefits the company. Regular exchanges of views and information also take place outside of the scheduled meetings. The Corporate Governance Commission established by the German government has developed a Corporate Governance Code, which must be adhered to by law. The Management Board and Supervisory Board of cash.life AG have issued a statement of compliance with the German Corporate Governance Code in accordance with Sec. 161 AktG (Stock Corporation Act). The current version can be found on our website at where we also explain few discrepancies relating to the Code s recommendations and suggestions.

10 Income Statement According to IFRS Notes Number Revenues Appreciation of insurance contracts Disposal of sold insurance contracts Insurance premiums Gross profit Personnel expenses Depreciation of tangible and intangible assets Other operating expenses Operating profit Financial income Financial expenses Financial result Pre-tax profit Income tax Net income Net income per share in EUR (basic) Net income per share in EUR (diluted) Weighted average shares outstanding (basic) Weighted average share outstanding (diluted) Interim Report ,468 5,337-57,974-2,641 6, ,73 3, ,7-1,511 1, ,8, 7,8, Interim Report ,12 4,982-41,528-2,226 5, ,279 3,351 5,3-3,16 2,14 5,365-1,864 3, ,8, 7,8, Cumulative Period ,178 1, ,975-5,71 12,77-1, ,868 7, ,496-2,842 4,21-1,58 2, ,8, 7,8, Cumulative Period ,58 11,264-11,497-4,965 12, ,242 9,385 1,913-7,988-6,75 3, , ,8, 7,8, Income Statement 1

11 Balance Sheet According to IFRS Notes Number 3 June December 24 Balance Sheet 11 ASSETS Long-term Assets Intangible assets Tangible assets Deferred tax assets ,352 4, ,265 5,267 Short-term Assets Receivables and other assets 1. Receivables from insurance contracts 2. Trade accounts receivable 3. Tax refund claims 4. Other receivables and other assets Cash and cash equivalents ,163 5,342 5,56 3,246 1, ,95 188,469 27,777 4,15 15, ,824 Balance Sheet Total 24, ,91 EQUITY AND LIABILITIES Equity Subscribed capital Retained earnings Net income 7,8 12,49 2,63 22,839 7,8 12,49 2,29 * * Long-term Liabilities 1. Deferred tax liabilities 2. Other long-term liabilities Short-term Liabilities 1. Liabilities to banks 2. Liabilities from the purchase of insurance contracts 3. Trade accounts payable 4. Other short-term liabilities 5. Short-term provisions ,744 33, , , ,57 48, , ,32 Balance Sheet Total 24, ,91 * after dividend payment

12 Statement of Equity According to IFRS Paid-in capital Subscribed capital Retained earnings as of ,8 22,895 Allocation to retained earnings Net income Dividend -3,3 as of ,8-7,135 as of ,8 Allocation to retained earnings Net income Dividend as of ,8 Generated equity Profit / loss carried Gewinnrücklagen forward TEUR 12,49 12,49 Net income 2,323 2,323 2,63 2,63 Total 22,895 2,323-3,3-4,812 12,49 2,63 15,39 Equity 3,695 2,323-3,3 2,988 2,29 2,63 22,839 Statement of Equity 12

13 Cash Flow Statement According to IFRS Notes Number Cash Flow Statement 13 Net income for period 2,63 2,323 Depreciation / write-ups of tangible assets Increase / decrease in provisions Income / expense from deferred taxes Other cash-neutral expenses / income 7 14 Gains / losses from disposal of tangible assets -718 Increase / decrease in inventories, trade accounts receivable and other assets not related to investing or financing activities 1,83 84,313 Increase / decrease of trade accounts payable and other liabilities not related to investing or financing activities -5,342-64,829 Cash flow from operating activities 1. 1,39 22,49 Payments for investments in tangible assets Payments for investments in intangible assets Proceeds from disposals of financial assets 2,495 Cash flow from investing activities ,262 Payments to company owners and minority interests -3,3 Cash flow from financing activities 3. -3,3 Net increase / decrease in cash and cash equivalents (Total cash flow from the three types of activities) 956-5,278 Cash and cash equivalents at the beginning of the period 737 6,672 Cash and cash equivalents at the end of the period 4. 1,693 1,394 Additional disclosures: - interest paid 3,279 7,624 - taxes paid 3 6

14 Change of Accounting Standards to IFRS Change fo Accounting Standards to IFRS 14 cash.life AG, as a company oriented towards the needs of the capital market, is required to prepare its consolidated financial statements according to International Financial Reporting Standards (IFRS) for the first time in the 25 financial year. The opening IFRS balance sheet was prepared starting 1 January 24. In accordance with IFRS 1, assets and liabilities will be reported and valued according to the IFRS valid on 31 December 25, the point in time when the consolidated financial statements were first prepared according to IFRS. The resulting difference amounts from the book values of assets and liabilities in the balance sheet according to HGB on 31 December 23 will be included in equity at the time of the changeover to IFRS, without effect on the income statement. The interim report dated 3 June 25 has been prepared in accordance with the prevailing IFRS, which were published as of 3 June 25 and require either mandatory or voluntary application. The interim report has been prepared according to the regulations of IAS 34. It cannot be ruled out that the IASB may issue additional statements before the final preparation of the annual financial statements on 31 December 25, which deviate from the IFRS regulations applied in the interim report for the second quarter 25 and must be applied for the annual financial statements as of 31 December 25. Furthermore, the EU Commission has not yet approved certain IASB regulations. In the opening IFRS balance sheet as of 1 January 24, the book values of assets and liabilities from the balance sheet according to HGB as of 31 December 23 are to be retroactively valued and recognised in accordance with the IFRS regulations in effect as of 31 December 25. IFRS 1 allows for certain exemptions which may deviate from this principle. cash.life AG did not choose utilise this exemption.

15 Accounting and Valuation Principles Accounting and Valuation Principles 15 Intangible assets are valued according to their purchase cost and are subject to scheduled straight-line amortisation over their expected useful lives. Tangible assets are valued at purchase cost less scheduled straight-line depreciation. The alternative new valuation method has not been employed. In the year of acquisition, tangible assets are depreciated on a pro-rated basis. Lowvalue fixed assets where the purchase cost does not exceed EUR 41 are fully depreciated in the year of acquisition. Leased items (operating leases) are accounted for on the financial statements of the lessor. The lessor carries the opportunities and risks associated with the leased item. The leasing instalments are thus recorded with effect on the income statement. Short-term receivables and other assets are valued at fair market value (corresponds to the market price) at the time of first inclusion. Short-term receivables and other assets held for trading purposes are valued at fair market value. The resulting profit or loss is included with effect on the income statement. Other short-term receivables and other assets are valued in the range of measuring after initial recogniation at amortised cost. Liabilities are valued at amortised cost. This amount corresponds to the repayment amount in cash.life AG s liabilities. Provisions are valued using the best estimate methodology. Taxes on income include deferred taxes as well as the actual taxes on income. Deferred taxes are recognised for temporary differences between the book and tax values as well as tax loss carryforwards, as long as their use in subsequent periods is likely. The calculation of deferred taxes is based on the future expected tax rate of around 35 percent.

16 Equity and Net Income Reconciliation Equity and Net Income Reconciliation 16 The follow reconciliation statement presents the major effects of the change in accounting from HGB to IFRS as they relate to the assets, earnings and financial situation. Equity reconciliation statement Notes 31 December 24 1 January 24 Number Equity according to HGB 16,434 39,192 Intangible assets Deferred taxes 1. Deferred tax assets 4,265 8,521 Deferred tax liabilities Other long-term liabilities Other short-term liabilities ,582 Equity according to IFRS 2,29 3,695 Net income reconciliation statement Notes Number Net income according to HGB -43,124 Consolidation loss 3. 5,397 Intangible assets -339 Deferred taxes 1. Deferred tax assets -4,256 Deferred tax liabilities 118 Other long-term liabilities 167 Other short-term liabilities 2. 16,582 Net income according to IFRS 19,545

17 Equity and Net Income Reconciliation Deferred taxes Due to the capitalisation of deferred taxes in the amount of EUR 8,521 thousand for tax loss carry-forwards and the temporary application and valuation differences between IFRS and tax values as of 1 January 24, equity according to IFRS has increased. As a result of the release of deferred tax assets, due primarily to the use of tax loss carryforwards, net income according to IFRS for the 24 financial year is EUR 4,256 thousand lower than the net income under HGB. 2. Other short-term liabilities On the IFRS balance sheet, interest rate hedges (interest rate swaps) are recorded at fair value. Due to the lower level of interest rates as of 1 January 24, a negative present value of EUR 16,582 thousand resulted in a decrease in equity according to IFRS. Due to the fair value valuation, the losses from interest rate hedges were anticipated with the changeover to IFRS accounting standards. According to HGB, losses are not recognised until the sale of the interest rate contracts in the 24 financial year. Thus, the expense of EUR 16,582 thousand in the reconciliation of net income from HGB to IFRS must be neutralised. 3. Consolidation loss The merger of the former cash.life AG into its previous parent company, the former adv.orga Beteiligungen Aktiengesellschaft, effective from 1 January 24, resulted in a consolidation loss under HGB of EUR 5,397 thousand. Under IFRS, this consolidation did not result in a loss (cp. notes to the balance sheet page 2). This resulted in a corresponding increase in net income under IFRS compared to HGB.

18 Notes to the Income Statement Notes to the Income Statement Gross profit Revenues primarily include income from policy management as well as income from policy sales. Policy management income amounted to EUR 87 thousand in the second quarter 25 and relates to servicing for policies sold to closed funds. Income from policy sales (policies sold to closed funds) amounted to EUR 6,613 thousand. This income compares to EUR 57,974 thousand generated from the disposal of sold policy contracts. The appreciation of insurance contracts amounting to EUR 5,337 thousand resulted primarily from portfolio returns and from ongoing premium payments of EUR 2,641 thousand. 2. Personnel expenses A greater number of employees in the second quarter 25 compared to the second quarter 24 resulted in a EUR 379 thousand rise in personnel expenses, which totalled EUR 86 thousand. Average Change Employees Apprentices Total

19 Notes to the Income Statement Other operating expenses Other operating expenses primarily include expenses for legal and consulting costs, agent commissions, advertising and public relations, trust fees, rents for office space as well as travel expenses. 4. Financial result Financial income refers exclusively to other interest and similar income amounting to EUR 189 thousand. Of the financial expenses, EUR 1,663 thousand are related to interest and similar expenses, and EUR 37 thousand relate to expenses for interest rate hedges. In the second quarter of 24, financial income from the valuation of derivatives at fair value amounted to EUR 4,968 thousand. A large share of the derivatives were sold in the second half-year 24, which meant that a similar special effect was not recognised in the 25 financial result. 5. Income tax The actual taxes on income in the second quarter 25 amounted to EUR 317 thousand. The use of tax loss carryforwards, through the reduction of deferred tax assets, led to a deferred tax expense of EUR 414 thousand. In addition, the reversal of temporary differences resulted in a deferred tax expense of EUR 3 thousand.

20 Notes to the Balance Sheet Notes to the Balance Sheet 2 5. Other receivables and other assets Consolidation Effective starting 1 January 24, the former cash.life AG was merged into its parent company, adv.orga Beteiligungen Aktiengesellschaft. In the course of the consolidation, adv.orga Beteiligungen Aktiengesellschaft changed its company s name to cash.life AG. A parallel application of IFRS 3.3 (b) (joint control) excludes the recognition of goodwill. The difference from the consolidation amounted to EUR 6,453 thousand. 1. Deferred taxes In accordance with IAS 12, cash.life AG has accumulated deferred taxes for loss carry-forwards as well as differences in the recognised value and valuation between IFRS and tax values. Deferred tax assets of EUR 3,195 thousand relate to expectations of future tax decreases due to the crediting of tax loss carry-forwards. 2. Receivables from insurance contracts The item receivables from insurance contracts includes the trading portfolio, which is comprised of the total pool of life insurance contracts and amounted to EUR 22,163 thousand. 3. Trade receivables Trade receivables are primarily purchase price claims from the sale of used life insurance policies to closed funds. 4. Tax refund claims Tax refund claims result from allowable capital gains taxes including the solidarity surcharge. This relates to tax withholdings on insurance income. Other receivables and other assets comprise the accrual of pre-paid life and social security insurance premiums amounting to EUR 1,726 thousand. Loan claims against associated companies remain in the amount of EUR 1,449 thousand. 6. Other long-term liabilities In the first half-year 25, derivative financial instruments were used to hedge against interest rate movements. These financial instruments are valued at their present market value in accordance with IAS 39. Payment obligations of EUR 358 thousand are included in other long-term liabilities. Profits and losses are recognised on the income statement. As of 3 June 25, there was one interest cap transaction to hedge floating money market interest rates in accordance with the agreement dated 2 September 22 between cash.life AG and the Landesbank Baden-Württemberg, in the form of a rate cap agreement. The reference amount was EUR 5, thousand. The total premium amounted to EUR 935 thousand. The interest rate cap transaction expires on 18 December Other short-term liabilities Other short-term liabilities amounting to EUR 366 thousand contained the accruals of interest rates for short-term bank loans. 8. Short-term provisions Short-term provisions contained EUR 688 thousand in provisions for taxes on income. EUR 566 thousand was provisioned for legal and consulting costs, tax and auditing costs as well as ongoing invoices. Furthermore, provisions of EUR 164 thousand were accrued for holiday, profit sharing and bonus payments.

21 Notes to the Balance Sheet 21 Contingent liabilities and liabilitiy guarantees Guarantees to credit institutions primarily took the form of the surrender of all rights and claims resulting from life and social security insurance contracts. The total amount of liabilities covered by liens and similar rights amounted to EUR 181,744 thousand. Other financial obligations which are not evident from the balance sheet are comprised of long-term debt relationships (rent and lease contracts) with a yearly negative impact of EUR 258 thousand. Guarantees for external liabilities (against associated companies) exist in the form of a directly enforceable guarantee up to a maximum amount of EUR 2 thousand against the Vorsorge Luxemburg Lebensversicherung S.A., Munsbach / Luxemburg for payment obligations of link.life Vertriebs- und Servicegesellschaft mbh, Vienna / Austria and cash.life plus Vertriebs- und Servicegesellschaft mbh, Munich. With an agreement between cash.life AG and ZH Partner- Fonds Nr. 8 GmbH & Co. KG dated 2 July 24, cash.life AG transferred nine interest rate derivative contracts with all related rights and claims as well as obligations and liabilities to ZH Partner-Fonds Nr. 8 GmbH & Co. KG (associated company) with economic effect from 1 July 24 (effective date). The transfer of derivatives results in a liability risk for cash.life AG relating to interest obligations in the event the transferee does not fulfil his obligations. As of 3 June 25, the negative present value of these derivative contracts amounted to EUR 24,145 thousand.

22 Notes to the Cash Flow Statement Notes to the Cash Flow Statement Cash flow from financing activities 1. Cash flow from operating activities The cash flow from operating activities, calculated using the indirect method starting with net income for the period, declined by EUR 21,451 thousand compared to the first halfyear 24 to EUR 1,39 thousand. The decline was mainly due to the repayment of short-term liabilities accompanied by a reduction in short-term assets. 2. Cash flow from investing activities In the first half-year 25, investments amounted to EUR 83 thousand. There were no disposals of tangible assets. As a result, the cash flow from investing activities decreased to EUR 2,345 thousand compared to the first halfyear 24. The cash flow from financing activities includes dividends paid in the financial year. In the first half-year 24, a total of EUR 3,3 thousand was paid as a dividend for the 23 financial year (EUR 3.85 per common share), as approved at the Annual Shareholders Meeting on 15 June 24. A dividend payment of EUR 1 per common share for the 24 financial year was approved at the Annual Shareholders Meeting on 1 July 25. The payment will occur in the third quarter of 25 and affect the cash flow from financing activities by EUR 7,8 thousand. 4. Cash and cash equivalents at the end of the period The overall positive, cash-effective change in funds amounting to EUR 956 thousand resulted from the contribution of the cash flow from operating activities. As of 3 June 25, financial funds amounted to EUR 1,693 thousand.

23 Other Disclosures Other Disclosures 23 Executive bodies of the compay Management Board Dr. Stefan Kleine-Depenbrock (Chairman) Strategy and Controlling Dr. Marcus Simon Finances and Taxes Lutz Schroeder Distribution and PR / Marketing Supervisory Board Gerd A. Bühler (Chairman) Lawyer, tax accountant Vice-Chairman of the Supervisory Board of ALTAM Holding AG, Ulm Member of the Supervisory Board of IREKS GmbH, Kulmbach Klaus Mutschler (Vice-Chairman) Graduate in business management Chairman of the Supervisory Board of ALTAM Holding AG, Ulm Ralf Brammer Member of the Management Board of AWD Holding AG, Hannover Member fo the Supervisory Board of tecis Asset Management Aktiengesellschaft, Hamburg Member of the Supervisory Board of tecis Finanzdienstleistungen Aktiengesellschaft, Hamburg Member fo the Supervisory Board of tecis Holding Aktienge-sellschaft, Hamburg There were not any changes in personnel of the company s Board of Management or Supervisory Board in the period under review.

24 Other Disclosures 24 Forward-looking statement Declaration on Corporate Governance pursuant to Section 161 AktG The declaration prescribed by Section 161 AktG concerning compliance with the German Corporate Governance Code was made by the Management Board and Supervisory Board. In accordance with the Code s recommendations, this declaration is available to shareholders on the company s website. Significant events after the balance sheet date In July 25, interest rate hedges with volumes of EUR 75, thousand to EUR 15, thousand with terms to maturity between 25 and 21 at the latest were entered into in order to take advantage of the current low interest rate levels. This report contains forward-looking statements which reflect the current view of the management of cash.life AG regarding future events. Forward-looking statements are based on current forecasts, estimates and expectations and therefore are subject to risks and uncertainties. These statements can deviate significantly from actual future developments and are subject to general political, economic, legal and tax developments, changes, risks and uncertainties. cash.life AG does not intend to update forward-looking statements to adapt them to the events and developments following the date of this report, nor is the company subject to any special obligations requiring it to do so. Munich, 2 August 25 Dr. Stefan Kleine-Depenbrock cash.life AG is planning an acquisition of a company in the third quarter 25, with the goal of significantly increasing its purchasing volume. Lutz Schroeder Dr. Marcus Simon

25 Financial Calendar Financial Calendar August 25 Publication of cash.life AG s interim report as of 3 June 25, cash.life AG analyst meeting 24 August 25 Company presentation at the Kirchhoff Small- and Midcap Conference, Zürich (additional informationen at 29 August 25 Analyst presentation of cash.life AG at the SCC Small Cap Conference, Frankfurt 11 November 25 Publication of cash.life AG s interim report as of 3 September November 25 Analyst presentation of cash.life AG at the German Equity Forum, Frankfurt 23 June 26 cash.life AG s Annual Shareholders Meeting 26 Please note that the dates listed above are subject to change.

26 Investor Relations Contact 26 Investor Relations Contact: cash.life AG Thorsten Wittmeier Landsberger Str Munich Germany Tel.: +49 (89) Fax: +49 (89) IR@cashlife.de