Turning ideas into innovation

Transcription

1 Turning ideas into innovation semi-annual report 2014

2 Contents Key figures 3 Foreword 4 Management report of FinTech Group AG 5 Business figures 12 Consolidated balance sheet as of 6/30/ Consolidated income statement for 6/30/ Simplified cash flow statement for 6/30/ Equity schedule 16 Group annex as of 6/30/ Development of fixed assets from 1/1 6/30/ Legal notice 29 Page 2 FinTech Group AG Semi-annual Financial Report 2014

3 Key figures Operational business H H Change Executed transactions Number 2,913,192 3,434,742-15,2% Number of customers Number 130, ,398 5,5% Transactions per customer/year tot, Number 44,74 55,67-19,6% Customer assets under management of which: Custodial asset volume of which: Deposit volume Million EUR 3,718 3,257 14,2% Million EUR 2,991 2,658 12,5% Million EUR ,5% Result Net commission income KEUR 7,676 8,479-9,5% Net income of trading portfolio KEUR 3, ,172,2% Net interest income KEUR ,4% Administrative expenses KEUR 15,514 8,170 89,9% EBITDA KEUR -5, EBIT KEUR -4, Net profit KEUR -3, Employees as of 6/30/2014 Employees Number ,5% + 35 employees + 6,835 customers 6/30/ /31/2013 Change Balance Balance sheet total KEUR 79,846 50,894 56,9% Equity KEUR 35,306 30,501 15,8% Equity ratio in % ,2% Page 3 FinTech Group AG Semi-annual Financial Report 2014

4 Foreword Dear shareholders, flatex Holding AG is becoming FinTech Group AG. By having a clear focus on technology-based financial services, we are making ourselves less dependent on the brokerage business. The new subsidiaries are to use existing structures of the group and simultaneously prevail on the market with new and innovative products. Our goal in the medium term is to be one of the leading financial services technologies companies in Europe and to redefine digital financial services. Page 4 FinTech Group AG Semi-annual Financial Report 2014

5 Management report of FinTech Group AG The German economy is losing momentum: Germany s Federal Statistical Office (Destatis) announced that the gross domestic product (GDP) fell in the second quarter of 2014 by 0.2% compared to the previous quarter, after price, seasonal, and calendar adjustment. However, it is likely that the extremely mild weather conditions played a role in strong growth rates at the beginning of the year: According to the latest calculations, the German economy grew by 0.7% in the first quarter of 2014, and in the final quarter of 2013 GDP increased by 0.4% over the previous quarter. According to preliminary calculations, the slight decline in GDP in the second quarter of 2014 was due to foreign trade and investments. In contrast, there was slightly greater consumption from private as well as public budgets than in the previous quarter. Compared to the previous year, the German economy lost momentum, but was able to continue to grow: The price-adjusted GDP in the second quarter of 2014 was 0.8% higher (calendar adjusted by 1.2%) than in the second quarter of For 2014, ifw Kiel is expecting an increase in GDP of 2%, after an increase of 0.4% in At 1.2%, the inflation rate is likely to be slightly lower than last year. Financial markets In the first quarter of 2014, the stock exchanges were mixed. The upward trend from the previous year was interrupted in part due to the political tensions in Ukraine and the Middle East. There was a positive trend in the second quarter of 2014 due to the loose monetary policy of the European Central Bank. As of June 30, the DAX was at 9,833 points, up 2.9% over year end During the quarter, the benchmark index crossed the psychologically important 10,000-point mark for the first time. Business development in the divisions At the end of the first half of the year, the number of customers was able to be further increased to 130,233, and the client assets under management increased to EUR 3.7 billion. 2,913,192 securities transactions were conducted across the group. Compared with the first half of 2013, this is a decrease of 15%. With consideration of the previous year s brokered trades of ViTrade AG, which has since been sold, the value for the first half of 2014 is almost at the same level. Compared to the same period last year, commission income due to the sale of ViTrade AG to XCOM Finanz GmbH fell by 12% to KEUR 7,693. Administrative expens- Page 5 FinTech Group AG Semi-annual Financial Report 2014

6 es increased by 90% from KEUR 8,170 to KEUR 15,514 due to broadening of the group s activities and in particular the taking up of banking activities. In this way, FinTech Group AG (formerly flatex Holding AG) achieved a result of KEUR -3,948 in the first half of the year. The business development of the group is mainly determined by the activities of flatex GmbH, AKTIONÄRSBANK, and CeFDex AG. After the purchase of Koch GmbH Wertpapierhandelsbank and the acquisition of CeFDex AG, at the beginning of the current fiscal year two securities trading banks were part of the group. To leverage cost saving potentials and synergy effects, KochBank was merged with the CeFDex AG in early flatex&friends GmbH and MYFONDS.DE GmbH, which offer Internet services related to financial markets, are of minor importance for the business development of the group. flatex GmbH At flatex GmbH, the number of customers whose accounts and deposits are maintained at biw Bank für Investments und Wertpapiere AG (biw) increased to 128,186, a nearly 4% gain compared with the same period last year. With flatex Germany, there are currently 122,312 customers, and with flatex Austria 5,874. The transaction numbers were down from 2013 by 0.4%, falling from 2,888,206 to 2,877,355 orders (Germany 2,738,765 orders, Austria 138,590 orders). flatex GmbH is a discount online broker that continues to be geared toward securities transactions and targets active, well-informed traders acting independently. Trading options cover all security types, all German and many international stock exchanges, off-the-floor trading, and both CFDs and FX (currency trading). The service range is characterized by an inexpensive pricing model coupled with a focus on customer-oriented service. In the 2014 broker poll, flatex GmbH was able to take third place in the categories of Online Broker, Certificate Broker, and Daytrade Broker. flatex GmbH continued to edge out the competition in an independent study of the German Society for Consumer Studies (DtGV) and news channel N24. In a test of 16 online brokers, flatex GmbH took first place. In the test, it was able to score points especially in customer service, transparency, and conditions. flatex GmbH was also able to win a title and was the test winner in a comparison with 11 Austrian banks and direct banks. In April 2014, the Association for Consumer Page 6 FinTech Group AG Semi-annual Financial Report 2014

7 Information (Verein für Konsumenteninformation) compared the total cost of securities accounts, and we were the only participant to garner the maximum score. The magazine uro again commissioned Germany s largest bank test in April Like last year, the company was able to take first place. Die AKTIONÄRSBANK Kulmbach GmbH After a Family and Friends phase, the Aktionärsbank launched its activities for interested customers on 02/04/2014. The focus is on trade-affine customers making decisions on their own behalf. The online presence is the focal point from which both visitors and customers can access all information about the company and services over the Internet. Through the user-friendly platform, private investors as well as trading professionals can focus on their investment strategy. In addition, AKTIONÄRSBANK offers a transparent and fair flat-fee pricing model. The market for online brokerages is currently operating in a difficult environment. The volatility of the markets has fallen sharply, particularly in recent weeks. This means the trading activities of the addressed customer group are decreasing. In addition, there is price-sensitive competition between providers. Aktionärsbank has faced these challenges. With the market launch on 02/04/2014, various press and marketing activities were used to position AKTIONÄRSBANK with the headline Germany trades here and By shareholders for shareholders. In addition to extensive editorial and promotional articles in the specialized print media, online media was used in the target groups. In particular, comparison portals (so-called affiliate marketing) continuously generate new trading-affine AKTIONÄRSBANK customers from the competition. Starting in May 2014, TV commercials were purchased on the news channels n-tv and DAF for the launch of the 2.95 for 6 months price campaign. The first customer surveys confirm the functional and price offer, and thus the sustainable competitiveness in the market. Even if new customer growth is still below plan, the bank is confident that it will be able to significantly contribute to the positive development of the group, especially through expansion of business activities and business areas. Page 7 FinTech Group AG Semi-annual Financial Report 2014

8 CeFDex AG The volatility important for the CFD business remained at very low levels in the first half of the year and continued to decline from January to June. In addition to the previous B2B customers flatex, flatex AT, S-Broker, and Vitrade, the business units Aktionärsbank und Benk began operating at the beginning of the year. Compared to the same period last year, the number of trades increased by 4%, with a reduction of revenue per trade of 20%. Total return (book result, commissions, financing income) declined by 35%. The expansion of the customer base in Designated Sponsoring was further promoted in recent months. Despite high turnover, the number of clients was able to be increased from 43 to 47 from the end of 2013 until 6/30/2014. The positive trend continues. Business in the Designated Sponsoring area was affected by technical changes. On the one hand, registration of CeFDex AG as a new exchange member and approval as a designated sponsor took place. On the other hand, there was a change in the settlement bank. In the second quarter, the first field roadshow was implemented in Austria, which was perceived as a great success by issuers and investors. In the Capital Markets division, the bank supported 10 clients in the area of technical securities handling. This involves supporting capital increases and technical listings of securities on the Frankfurt Stock Exchange. In addition, the bank serves three clients as a Deutsche Börse listing partner and two clients in the context of general equity capital markets consulting. In Sales Trading, monthly earnings in the previous year were more than doubled. Earnings situation Due to the expansion of the group, the first half-year s figures for 2013 are only comparable with the figures for the first half-year of 2014 to a limited extent. After extensive restructuring of the Group and expansion of business activities, in the first half of 2014 earnings before taxes of KEUR -4,956 (first half of 2013 KEUR Page 8 FinTech Group AG Semi-annual Financial Report 2014

9 126) were achieved. Net commission income decreased by 9% from KEUR 8,479 to KEUR 7,676. Personnel expenses increased by 107% from KEUR 2,961 to KEUR 6,132 due to broadening of the group s activities and in particular the taking up of full-banking activities. Other administrative expenses increased by 80% from KEUR 5,210 to KEUR 9,382. Assets and financial position Total assets amounted to KEUR 79,846 as of June 30, 2014 (12/31/2013 KEUR 50,894). With equity of KEUR 35,306 (12/31/2013 KEUR 30,501), the equity ratio is 44% (12/31/ %). Bank liabilities did not exist on the balance sheet date, with the exception of liabilities identified under liabilities from deliveries and services owed to banks amounting to KEUR 110 (12/31/2013 KEUR 323). The main items on the assets side are cash and near cash, such as cash on hand, balances with central banks and daily receivables owed by credit institutions (KEUR 37,535, 12/31/2013 KEUR 19,149), other receivables owed by credit institutions (KEUR 1,513, 12/31/2013 KEUR 1,696), receivables owed by customers (KEUR 462, 12/31/2013 KEUR 284), other assets (KEUR 670, 12/31/2013 KEUR 1,713), and intangible assets (KEUR 5,028, 12/31/2013 KEUR 5,326) as well as property and equipment (KEUR 1,140, 12/31/2013 KEUR 1,299). Equities and other variable-yield securities in the amount of KEUR 313 (12/31/2013 KEUR 226) were held exclusively in the form of equities and funds. The daily liabilities are covered by bank deposits, in which a large part of the company s assets are invested. Liabilities with agreed term or notice period existed at no time during the fiscal year. The subscribed capital of FinTech Group AG (formerly flatex Holding AG) amounts to EUR 13,995,287 as of June 30, Including the capital reserves of EUR 18,788,007.44, the retained earnings of EUR 6,843,329.40, and the accumulated profit of EUR 4,320,497.00, the equity capital of the group as of Monday, June 30, 2014 was EUR 35,306, (12/31/2013 EUR 30,501,246.46). Since 12/31/2013, total provisions increased from KEUR 1,600 to KEUR 3,087 (+93%). Page 9 FinTech Group AG Semi-annual Financial Report 2014

10 Risk report With regard to the risk report in the divisions, we refer to the presentation of the Annual Report In the first half of 2014, there were no significant changes in the risk estimates. Personnel As of June 30, 2014, FinTech Group AG (formerly flatex Holding AG) employed 112 employees throughout the group. Due to expansion of the Group s activities, this is an increase of 45.5% compared with June 30, 2013 (77 employees). Forecast report The individual company FinTech Group AG (formerly flatex Holding AG) is particularly dependent on the results of flatex GmbH and AKTIONÄRSBANK due to the profit and loss transfer agreements. This makes a forecast difficult. The same is true for the group. Due to the traditionally volatile business development at the subsidiaries as well as the start-up losses at the subsidiary AKTIONÄRS- BANK, a forecast of the results is very difficult. The Executive Board expects due to the actual restructuring a loss in the balance sheet for However, this will be the basis for a significant increase and rapid growth in profit in the following years. Stable earnings from the brokerage business of flatex GmbH are expected to continue. At AKTIONÄRSBANK, new customer growth is still under the plan targets. Nevertheless, the bank is confident that it will be able to significantly contribute to the positive development of the group, especially through expansion of business activities and business areas. At CeFDex AG the business trend in the first months of 2014 is under the estimates and forecasts of the Executive Board for the company as a whole. However, the Executive Board is optimistic that the full year of 2014 will end with just a small loss, and expects significant improvement in Page 10 FinTech Group AG Semi-annual Financial Report 2014

11 Supplementary report FinTech Group AG (formerly flatex Holding AG) redeemed some EUR 6 million from the complete sale of 930,000 treasury shares. The shares were sold to international institutional investors in a private placement. As of 07/31/2014, a company branch office opened in Vienna in September 2013 was closed. As of 08/15/2014, the Supervisory Board appointed Mr. Frank Niehage as an additional Executive Board member and Chief Executive Officer. At the Aktionärsbank, Managing Directors Thomas Schmidt and Dirk Piethe will resigne. Mr. Frank Niehage and Mr. Bernd Würfel were appointed as Managing Directors. After the previous Chairman of the Supervisory Board Mr Karl Matthäus Schmidt resigned his mandate at the end of the Annual General Meeting on 07/18/2014, the General Meeting elected Mr. Stefan Feulner as an additional Supervisory Board member. In the context of the Supervisory Board meeting on 07/23/2014, Bernd Förtsch was elected as the new Supervisory Board Chairman, and Achim Lindner was elected as his Deputy Chairman. Page 11 FinTech Group AG Semi-annual Financial Report 2014

12 Business figures Transactions H H H Executed Group transactions 2,913,192 2,598,509 3,434,742 flatex Germany 2,738,765 2,479,452 2,765,781 flatex Austria 138, , ,425 ViTrade AG ,536 Aktionärsbank 35, Number of customers 130, , ,398 Group transactions per customer/year Customer assets under management H H H Customer assets under management (in million) 3,718 3,527 3,257 flatex Germany 3,498 3,356 2,922 flatex Austria ViTrade AG Aktionärsbank of which: Custodial asset volume 2,991 2,795 2,658 flatex Germany 2,814 2,654 2,380 flatex Austria ViTrade AG Aktionärsbank of which: Deposit volumes flatex Germany flatex Austria ViTrade AG Aktionärsbank Page 12 FinTech Group AG Semi-annual Financial Report 2014

13 Consolidated balance sheet as of 6/30/2014 in KEUR 6/30/ /31/2013 6/30/2013 Cash reserve Cash on hand Balances with central banks 2, Receivables owed by credit institutions Maturing daily 35,098 19,046 14,307 Other receivables 1,513 1,696 1,769 Receivables owed by customers Shares and other variable-yield securities ,383 Trading portfolio 27,747 17, Trust assets 1,064 1,049 0 Intangible assets 5,026 5,326 5,080 Property and equipment 1,140 1,299 1,303 Other assets 670 1,713 2,696 Accruals and deferred income 2,683 1, Deferred tax assets 1, Total assets 79,846 50,894 28,227 Liabilities to credit institutions Liabilities to customers 14, Trading portfolio 17,880 10, Trust liabilities 1,064 1,049 0 Other liabilities 1,550 1,212 2,319 Accruals and deferred income Provisions 3,087 1,600 2,104 Fund for general banking risks 5,782 5,384 0 Including special items as per 340e Section 4 HGB Equity Subscribed capital 13,995 12,465 9,920 Capital reserve 18,788 16,243 7,745 Retained earnings 6,843 2,166 2,166 Accumulated profit/loss -4, Minority interests Total liabilities 79,846 50,894 28,227 Contingencies Page 13 FinTech Group AG Semi-annual Financial Report 2014

14 Consolidated income statement for 6/30/2014 in KEUR H FY 2013 H Interest income Interest expense Current income from shares and other variable-yield securities Commission income 7,693 14,032 8,756 Commission expenses Net income/expense of the trading portfolio 3, Other operating income Personnel expenses -6,132-5,517-2,961 Other administrative expenses -9,382-9,386-5,210 Other operating expenses Depreciation and value adjustment of intangible and tangible property and equipment Depreciation and value adjustments on receivables and certain securities as well as additions to provisions for the lending business Depreciation and value adjustments on investments, shares in affiliated companies, and securities treated as fixed assets Income from revaluation of investments, shares in affiliated companies, and securities treated as fixed assets Result from ordinary business activities -4,956-1, Extraordinary expenses Extraordinary income Taxes on income and earnings 1, Other taxes Consolidated net profit -3,948-1, Of which attributable to minority interests 72 Of which attributable to shareholders -3,948-1, Page 14 FinTech Group AG Semi-annual Financial Report 2014

15 Simplified cash flow statement for 6/30/2014 in KEUR 6/30/ /31/2013 6/30/2013 Cash and cash equivalents at the beginning of the period 19,149 5,565 5,565 = Cash flow from ongoing activities 9,968 1,365 2,779 = Cash flow from investing activities ,124-2,240 = Cash flow from financing activities 8,753 9,469 6,975 + Consolidation-related change in cash and cash equivalents 0 1,626 1,231 = Cash and cash equivalents at the end of the period 37,535 19,149 14,310 Page 15 FinTech Group AG Semi-annual Financial Report 2014

16 Changes in the equity schedule for the period from January 1 to June 30, 2014 PARENT COMPANY MINORITY SHAREHOLDERS GROUP Consolidated retained earnings Subscribed capital in EUR Capital reserve in EUR Retained earnings in EUR Accumulated profit in EUR Equity in EUR Minority capital in EUR Equity in EUR Group equity in EUR As of 1/1/ ,465,287 16,242,711 2,166, ,877 30,501, ,501,246 Issue of shares 600,000 2,340, ,940, ,940,000 Sale of treasury shares 930, ,296 4,677, ,812, ,812,500 Dividends paid Other changes Consolidated net profit ,947,620-3,947, ,947,620 Other consolidated earnings Consolidated comprehensive earnings ,947,620-3,947, ,947,620 As of 6/30/ ,995,287 18,788,007 6,843,329-4,320,497 35,306, ,306,127 Consolidated equity 35,306,127 Equity 35,306,127 Page 16 FinTech Group AG Semi-annual Financial Report 2014 Page 17

17 Group annex as of Monday, June 30, 2014 A. General information A consolidated financial statement dated Monday, June 30, 2014, was prepared on a voluntary basis. The present consolidated financial statement as of Monday, June 30, 2014, was prepared in accordance with 340i Section 1 in conjunction with Section 3 HGB and the regulations of 290 ff. HGB and the relevant provisions of the Stock Companies Act (AktG) and the Accounting Directive for Banks and Financial Services Providers (RechKredV). In particular, the additional reporting requirements for credit institutions and financial services institutions of the fourth section of the third book of the HGB and the Articles of Association of the company were adhered to. The consolidated balance sheet and the consolidated profit and loss account as of June 30, 2014, were prepared in accordance with the classification requirements of RechKredV. The previous year s figures correspond to the consolidated financial statement as of December 31, 2013, and pertain to the entire year The consolidated profit and loss account was prepared in report form. The consolidated financial statement is presented in euros. The explanations were mainly specified in thousands of euros ( KEUR ). The fiscal year for the group and the consolidated companies corresponds to the calendar year. The annex was prepared in abbreviated form in regard to the requirements of the German Commercial Code (HGB). B. Scope of consolidation The consolidated financial statement includes FinTech Group AG (formerly flatex Holding AG), Kulmbach (parent company), and five subsidiaries. As of the balance sheet date, the company holds direct equity investments in the following companies, which are included in the consolidated financial statement: Die AKTIONÄRSBANK Kulmbach GmbH, Kulmbach (100%) flatex GmbH, Kulmbach (100%) CeFDex AG, Frankfurt (100%) flatex & friends GmbH, Kulmbach (100%) Page 18 FinTech Group AG Semi-annual Financial Report 2014

18 MYFONDS.DE GmbH, Kulmbach (100%) Under an agreement dated December 20, 2013, with effect from January 1, 2014, FinTech Group AG (formerly flatex Holding AG) sold all shares in Kochbank GmbH to CeFDex AG under conditions precedent. The conditions precedent and thus the purchase/sale became legally effective on January 2, By an agreement dated April 30, 2014, with effect from January 1, 2014 (date of merger), KochBank GmbH as the transferring entity transferred its entire assets by dissolution without liquidation to CeFDex AG as the acquiring entity, without granting shares to CeFDex AG pursuant to 2 ff., 46 ff., and 60 ff. of the Transformation Act (UmwG, merger by acquisition). Registration of the merger in the commercial register was on May 27, C. Principles and methods of consolidation Capital consolidation is performed using the revaluation method. Receivables and liabilities between the companies included in the consolidated financial statement were eliminated. In the consolidated profit and loss account, the commission revenues and other operating income between the companies included in the consolidated financial statement were offset against the corresponding expenses for the beneficiaries. According to 304 Section 2 HGB, interim profits that result from deliveries and services between group companies are not eliminated. This is because of their subordinate importance for providing a true picture of the asset, financial, and earnings situation of the group. D. Accounting and valuation principles The financial statements of the companies included in the consolidated financial statement of the parent company were prepared in accordance with uniform accounting and valuation principles. Authoritative for the preparation of this consolidated financial statement were largely the following accounting and valuation methods: Page 19 FinTech Group AG Semi-annual Financial Report 2014

19 Cash reserves, receivables owed by banks, receivables owed by customers, and other assets are stated at their nominal value. Where necessary, value adjustments are made to the extent needed. Shares and other variable-yield securities are accounted for at cost or at the lower fair value. As far as the reasons for the lower valuation no longer apply, appreciations to the market price are made, but only up to the original purchase cost. Financial instruments held for trading are assessed at fair value (average price on the balance sheet date) minus a risk discount. Purchased intangible assets and property and equipment were capitalized at their acquisition cost or production cost and depreciated on a straight line basis over their useful lives if they are subject to wear. Goodwill resulting from capital consolidation is depreciated over five years according to a schedule. Expenses paid before the closing date are identified as prepaid expenses on the asset side if they represent expenses for a specific period after this date. Provisions take into account all identifiable risks and contingent liabilities on the basis of prudent business judgment with the necessary settlement amount. Liabilities are recognized at their settlement amount. Foreign currency items are converted into euros at the closing rate (the ECB reference rate). Since the foreign currency items are mainly in the trading portfolio, identification of the foreign currency conversion effects are predominantly in the net amount of the trading portfolio. All liabilities have a remaining maturity of less than three months. E. Notes on the balance sheet Receivables from banks, receivables from customers and other assets Receivables from banks include claims from account balances and claims against cooperation partners, whose amounts due are settled according to contract some time after the period in which they arose. Page 20 FinTech Group AG Semi-annual Financial Report 2014

20 No receivables from customers with an indefinite term are included. Shares and other variable-yield securities The balance sheet item of shares and other variable-yield securities in the amount of KEUR 313 (previous year KEUR 226) includes investment securities which are valued at acquisition cost or at lower market prices on the balance sheet date. The securities portfolio, which is associated in full with the trading book, exclusively comprises shares in the amount of KEUR 264 (previous year: KEUR 179) and fund shares in the amount of KEUR 49 (previous year: KEUR 47). In the calculation of deferred tax assets, the tax rates of the companies in the consolidated group were taken into account. Trading portfolio (asset side) The trading portfolio on the asset side comprises the following: in EUR 6/30/ /31/2013 Shares 13,748, ,078, Financial futures contracts 57, , Receivables from foreign currency trading transactions 9,990, ,508, Receivables from CFD trading 911, , Receivables from prime br. security deposits 3,109, , Bonds and other fixed-income securities 0 10, Risk deduction -69, , Total 27,747, ,703, The shares reported in the trading portfolio are exclusively marketable and listed securities. With regard to the financial contracts, they are also exclusively marketable and listed contracts. The valuation is at the mean rate on the balance sheet date. Of the financial instruments and receivables reported in the trading portfolio on the asset side, KEUR 11,343 were denominated in foreign currencies. The risk deduction was made according to the provisions of 340e Section 3 HGB and is based on the risk value calculated for the overall trading position (value at risk). In calculating the risk value, parameters determined by banking oversight bodies (observation period of one year, holding period 10 days, 99% confidence interval) were applied. The calculated risk value is based on the asset item and the Page 21 FinTech Group AG Semi-annual Financial Report 2014

21 smaller liability item. For the sake of simplicity, the risk deduction was deducted only from the larger asset trading position. Trust assets The required security deposits (margin) in CFD transactions are made at a correspondent bank of the CFD transfer account of the respective end users on an account opened by CeFDex AG, Frankfurt, at this correspondent bank, and this account is managed as a trust account. The trust assets deposited on 6/30/2014 in the amount of KEUR 1,064 were capitalized according to 6 Section 1 RechKredV and reported in the corresponding amount as trust liability. Trust assets and trust liabilities relate to assets and liabilities that are attributable to the trading portfolio. Security deposits (margin holding) of end customers in the amount of KEUR 1,500 were used to refinance hedges and transferred for this purpose by the correspondent bank to the account of a third party. The liabilities for repayment to the correspondent bank were reported in the trading portfolio on the liability side. Fixed assets The development of the individual items of fixed assets and related depreciation is shown in the fixed asset schedule on p. 28. Deferred tax assets Taking into account the tax loss carryforwards of subsidiaries that are expected to be completed in the next five years, deferred tax assets totaling KEUR 605 (previous year: KEUR 495) were generated pursuant to 306 HGB in conjunction with 274 Section 1 HGB. There were no deferred taxes from consolidation measures as per 300 to 307 HGB. The calculation of deferred taxes was based on a profit tax rate of 30.82%. The profit tax rate includes the corporate tax, commercial tax, and solidarity surcharge, and takes into account the tax situation of the parent company and its subsidiaries. Page 22 FinTech Group AG Semi-annual Financial Report 2014

22 Liabilities Other liabilities mainly include liabilities arising from wage and church tax (KEUR 358, previous year KEUR 277) and VAT (KEUR 211, previous year KEUR 0). Trading portfolio (liability side) The trading portfolio on the liability side comprises the following: in EUR 6/30/ /31/2013 Shares 390, , Financial futures contracts 18, , Liabilities from currency trading 9,999, ,479, Liabilities from CFD trading and security deposits 1,500, ,000, Prime broker security deposits 5,972, , Total 17,880, ,176, The shares reported here are exclusively marketable and listed securities. With regard to the financial futures contracts, they are also exclusively marketable and listed contracts. Of the financial instruments and receivables reported in the trading portfolio on the liability side, KEUR 5,333 were denominated in foreign currencies. The financial instruments in the trading portfolio serve as collateral for the liabilities to the prime broker. During the fiscal year, the criteria defined internally by the institute for the inclusion of financial instruments in the trading portfolio did not change. Information according to 35 Section 1 No. 6c RechKredV The criteria defined internally in the institute for the inclusion of financial instruments in the trading portfolio have not changed as per 35 Section 1 No. 6c of the Accounting Directive for Banks and Financial Services Providers (RechKredV). Provisions Other provisions mainly include a provision for special contributions to the EdW, for severance payment to an Executive Board member, for profit sharing and vacation leave, for costs of the annual audit and for outstanding invoices. Page 23 FinTech Group AG Semi-annual Financial Report 2014

23 Fund for general banking risks The fund for general banking risks consists of an extraordinary item in accordance with 340g HGB in the amount of KEUR 1,000 (unchanged as of 12/31/2013) as well as an extraordinary item in accordance with 340e Section 4 HGB in the amount of KEUR 4,782 (previous year KEUR 4,384). Equity For the equity development, refer to the equity schedule. F. Explanations in regard to the profit and loss account Commission income Commission income includes proceeds from activities in the online brokerage of flatex GmbH and AKTIONÄRSBANK GmbH in the amount of KEUR 6,964 (previous year: KEUR 12,783), fund brokering of flatex GmbH amounting to KEUR 91 (previous year: KEUR 101), and income of CeFDex AG from designated sponsorship contracts and capital market transactions in the amount of KEUR 638 (previous year: KEUR 1,148). Net income of the trading portfolio As of 6/30/2014, net income of the trading portfolio amounted to KEUR 3,583 (previous year KEUR 281) after taking into account commissions for the tied agent and payments to the fund for general banking risks pursuant to 340e Section 4 HGB. G. Other information Supplemental information on the cash flow statement Cash and cash equivalents comprise bank credit balances maturing daily, balances with central banks, and to a lesser extent cash reserves and liabilities to banks. Cash and cash equivalents as of 6/30/2014 comprise the following: in KEUR 6/30/2014 Cash on hand 3 Balances with central banks 2,435 Receivables owed by credit institutions 35,098 Page 24 FinTech Group AG Semi-annual Financial Report 2014

24 Itemization of the number of employees In the fiscal year, the group had an average of 100 (previous year: 70) employees (without the Executive Board). Auditor s fees The fee billed by the auditor is broken down as follows: in KEUR 6/30/2014 Audit services and audit-related services 15 Other consulting services 1 Directors of the parent company Stefan Müller, Küps banker - Sole power of representation, not bound by the restrictions of 181 Alt. 2 BGB (prohibition of multiple representation) - Thomas Schmidt, Meerbusch certified banking specialist (until 1/31/2014) - Sole power of representation Page 25 FinTech Group AG Semi-annual Financial Report 2014

25 Development of fixed assets from 1/1 to 6/30/ SHARES AND OTHER VARIABLE-YIELD SECURITIES As of 1/1/2014 EUR Acquisition and production costs Accumulated depreciation Book value Additions EUR Disposal EUR Reclassifications EUR As of 06/30/2014 EUR As of 1/1/2014 EUR Appreciations a) Shares and other variable-yield securities 602, , , , , , , , EUR Additions EUR As of 06/30/2014 EUR As of 06/30/2014 EUR As of 1/1/2014 EUR Total 602, , , , , , , , INTANGIBLE ASSETS a) Self-created industrial property and similar rights and assets 0 2, , , , , , b) Concessions acquired for a fee, industrial property rights, and similar rights and assets as well as licenses for such rights and assets 1,407, , , ,608, , , , ,700, , c) Goodwill 3,689, ,689, , , , ,234, ,602, d) Prepayments 957, , ,063, , Total 6,054, , ,395, , , ,369, ,026, ,325, PROPERTY AND EQUIPMENT a) Land, leasehold rights and buildings, including buildings on third-party land 610, , , , , , , b) Technical equipment and machinery 1,482, , , ,476, , , , , , Total 2,092, , , ,086, , , , ,139, ,298, GRAND TOTAL 8,749, , , ,084, ,898, , , ,605, ,479, ,850, Page 26 FinTech Group AG Semi-annual Financial Report 2014 Page 27

26 Legal notice Fin Tech Group AG E.-C.-Baumann-Str. 8a D Kulmbach T +49 (0) F +49 (0) [email protected] Executive Board Frank Niehage (Chairman) Stefan Müller Supervisory Board Bernd Förtsch (Chairman) Achim Lindner (Deputy Chairman) Stefan Feulner