Annual report
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Highlights 3 Group Key Performance Indicators 5 The flatexDEGIRO Group 8 Letter from the Management Board 14 Report of the Supervisory Board 17 Combined Management Report 29 Consolidated Financial Statements 90 Further Information 179
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Highlights
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Highlights 2024 29 January 2024 flatexDEGIRO has increased its number of customers in Germany to over 500,000. Since 2006, flatexDEGIRO has successfully executed almost 140 million transactions in over 90,000 different stocks, bonds, funds and ETFs for its German customers, with a transaction volume well in excess of EUR 1 trillion. 01 October 2024 Oliver Behrens, long-standing CEO of Morgan Stanley Europe SE, took up his position as new CEO of flatexDEGIRO on 01 October 2024. Dr. Benon Janos (CFO) was appointed Deputy CEO as of 01 October 2024. In addition, the Management Board contracts of Dr. Benon Janos (Deputy CEO and CFO) and Stephan Simmang (CTO) were extended by four years until May 2029. 01 October 2024 flatexDEGIRO has launched a share buyback program with a volume of up to EUR 50 million, which will end no later than 07 May 2025. With the launch of its share buyback program, flatexDEGIRO is implementing its capital allocation strategy, which was outlined last year. 18 October 2024 The mandate of the BaFin’s special commission er at flatexDEGIRO Bank AG was terminated on 30 September 2024, following the successful elimination of the serious deficiencies identified in the 2022 special audit by the Company and a positive review by the specia l commissioner. 13 November 2024 Following continued growth over the last years, the total number of customers at flatexDEGIRO now exceeds the three million mark. The pan-European online broker has more than tripled its customer base since 2020 and won additiona l 400,000 new customers over the last 12 months alone. 16 December 2024 flatexDEGIRO launched trading in 20 cryptocurrenci es, setting new standards in terms of total costs and price transparency. The total trading cost for customers amounts to 0.6% of the order value, 0.7% for less liquid cryptocurrenci es . These costs include the so-called spread and an order fee of 0.5% of the order value.
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Group Key Performance Indicators
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 6 flatexDEGIRO AG Group Key Performance Indicators 2024 2023 Change in % Brokerage key figures T ransactions executed number 63,047,727 56,863,499 +10.9 Customer accounts as of 31/12 number 3,072,127 2,699,755 +13.8 Customer accounts as a yearly average number 2,885,941 2,549,078 +13.2 T ransactions per customer account/year number 22 22 -2.1 Customers assets under custody mEUR 71,509 51,745 +38.2 thereof: custody volume mEUR 67,240 48,110 +39.8 thereof: deposit volume mEUR 4,269 3,635 +17.4 Employees (average) number 1,271 1,285 -1.1 Financials Revenues kEUR 480,024 390,732 +22.9 EBITDA kEUR 202,477 140,352 +44.3 EBITDA margin in % 42.2 35.9 +17.5 EBT kEUR 155,652 103,016 +51.1 EBT margin in % 32.4 26.4 +22.8 Consolidated net profit kEUR 111,535 71,859 +55.2 Cost-income ratio in % 50.2 56.3 -10.8 Profit margin in % 23.2 18.4 +26.4 Balance sheet and cash flow statement Equity kEUR 754,651 673,624 +12.0 Total assets kEUR 5,400,377 4,540,026 +19.0 Equity ratio in % 14.0 14.8 -5.6 Cash flow from operating activities kEUR 168,862 63,079 +167.7 Adjusted return on tangible equity (ROTE) in % 38.0 31.0 +22.6 Segments Revenues kEUR 270,633 244,572 +10.7 flatex EBITDA kEUR 85,921 75,887 +13.2 Revenues kEUR 286,050 223,501 +28.0 DEGIRO EBITDA kEUR 116,556 64,465 +80.8 Revenues kEUR -76,660 -77,341 +0.9 Consolidation EBITDA kEUR - - -
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 7 flatexDEGIRO AG The flatexDEGIRO AG share 2024 2023 Change in % Shares outstanding as of 31/12 number 110,132,548 109,992,548 +0.1 Shares outstanding, annual average number 109,700,887 109,933,206 -0.2 Share capital as of 31/12 kEUR 110,133 109,993 +0.1 Market capitalisation as of 31/12 mEUR 1,627 1,229 +32.4 Closing price on 31/12 EUR 14.78 11.17 +32.3 Annual highest price EUR 15.97 11.23 +42.2 Annual lowest price EUR 9.24 6.54 +41.3 Earnings per share (undiluted) EUR 1.02 0.65 +56.9 Book value per share (undiluted) EUR 6.85 6.12 +11.9 Dividend per share EUR 0.04 - - Dividend per share for the following financial year as a proposal to the Annual General Meeting EUR 0.04 0.04 +0,0 -20% -10% 0% 10% 20% 30 % 40% 50% Ja n- 24 Ma r- 24 Ma y- 24 Ju l- 24 Sep- 24 Nov- 24 flatexDEGIRO SDAX TecDAX DAX
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The flatexDEGIRO Group
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Letter from the Management Board
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 15 flatexDEGIRO AG Letter from the Management Board Dear Shareholders, Dear Friends of flatexDEGIRO AG, We closed the 2024 financial year with the highest revenue and the highest net income in our company's history. Reflecting on our achievements, it is evident that flatexDEGIRO has made significant progress over the past few years, even beyond the pure financial results. Looking ahead, however, it becomes clear that there is still massive potential ahead of us on our way to becoming Europe's leading investment platform to build wealth. In a challenging environment, we have consistently delivered profitable growth and expanded our customer base by several hundred thousand customers year after year. Today, more than 3 million retail investors across Europe entrust us with over EUR 70 billion of their financial assets. We are deeply grateful for this significant expression of trust. We see it as an incentive to further expand our platforms to support our customers' wealth accumulation and to add new products and services – a task that for go od reasons we had to deprioritize over the past three years due to other, primarily regulatory, aspects. The potential that lies ahead of us is immense. It should allow us to increase our revenues by a further 10 percent per year on average over the next three years, and our net income by as much as 20 percent per year on average. The targets we have set ourselves for 2027 of around EUR 650 million in revenues and around EUR 200 million in Net Income are ambitious, but achievable, if we focus on consistently implementin g our strategic priorities. This includes increasing operation a l efficiency, strengthening existing business activities and expanding our product offerings. In online brokerage, we want to focus on offering our customers across Europe even greater freedom through comprehensive financial education. We will also launch new products; starting with enhancing our savings plans offering and offering term deposits, p aired with native trading in crypto assets and the opportunity for our customers to increase their returns through securities lending. In addition, our business process outsourcing activities show potential for a significan t expansion. The essential foundation for achieving these goals will be the continued harmonization of our IT landscape and merging it into a single technical platform by 2027. This will enable us to sustain our successful growth and establish flatexDEGIRO as Europe's leading investment platform to build wealth in the years to come. All our teams are focused on this. From left: Dr. Benon Janos (CFO), Oliver Behrens (CEO), Christiane Strubel (CHRO), Stephan Simmang (CTO)
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 16 flatexDEGIRO AG Together with all our employees, the Management Board is working towards realizing this vision and we extend our sincere gratitude to our esteemed business partners, public authorities, customers, and, above all, our investors for the trust they have placed in us. Yours sincerely Oliver Behrens Dr. Benon Janos CEO, Chairman of the Management Board Deputy CEO & Chief Financial Officer, Member of the Management Board Stephan Simmang Christiane Strubel Chief Technology Officer, Member of the Management Board Chief Human Resources Officer, Member of the Management Board
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Report of the Supervisory Board
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 18 flatexDEGIRO AG Report of the Supervisory Board In the 2024 financial year, the Supervisory Board of flatexDEGIRO AG (the “Company”) diligently exercised the control and advisory duties incumbent upon it in accordance with the law and the Articles of Association. It continuously advised and monitored the Management Board in its management of the Company and provided support on strategically important issues relating to the further development of the Company. The benchmark for this monitoring were the legality and regularity, expediency, strategic importa nce, sustainability and economic efficien cy of the management and Group management. The Supervisory Board was directly involved at an early stage in all decisions of material importance to the Company's business development. The written and verbal reports of the Management Board were the main basis for the fulfilment of the statutory supervisory duties. The Management Board informed the Supervisory Board regularly, promptly and comprehensively about all issues relevant to the flatexDEGIRO Group, in particular business policy and strategy, corporate planning and control and liquidity development, as well as about the course of business during the year and the Group's position, the risk situation and risk management, and also abo ut all matters and issues relevant to the Company in the areas of legal, human resources, internal audit and compliance. In addition, the Management Board informed the Supervisory Board about important events during the year. The status of the processing of findings from the Special Audits in the Group was discussed continuously and intensively, including the involvement of the Management Board member of flatexDEGIRO Bank AG responsible for managing the remediation project, Mr. Steffen Jentsch, and possibl e solutions and measures were discussed and examined. The mandate of the special commissioner of the German Federa l Financial Supervisory Authorit y (”BaFin”) at flatexDEGIRO Bank AG was terminated on 30 September 2024 following the successful elimination of the serious deficiencies from the special audit 2022 by the Company and the audit by the special commissioner. Furthermore, the Chairman of the Supervisory Board maintained a close and regular exchange of information and ideas with the Management Board outside of Supervisory Board meetings in order to discuss upcoming decisions and current business transactions and issues. A total of 31 meetings of the Supervisory Board and its committees were held. These were held in presence, by video conference, telephone conference or as a hybrid meeting, i.e. as a presence meeting with the option to participate in virtual form. In addit ion, the Supervisory Board passed resolutions outside of meetings by way of a circula r procedure in 33 cases. The Supervisory Board also met regularly, at least occasionally, without the Management Board, e.g. to discuss issues relating to the Management Board itself or internal Supervisory Board matters. Members of the Management Board took part in meetings to which the Auditor or Group Auditor was invited as an expert if the Supervisory Board or the committee considered their participation to be necessary. Meetings of the Supervisory Board and key activities In the 2024 financial year, six regular meetings and six extraordinary meetings were held. Two of the meetings were held as in presence meetings, six as video conferences, one as a conference call and four as a hybrid conference. A particular focus of the Supervisory Board's activities in the 2024 financial year was (i) monitoring the progress of the structured and fastest possible resolution of the findings from a special audit of flatexDEGIRO Bank AG conducted in 2022 by the German Federal Financial Supervisory Authority in accordance with Section 44 of the German Banki ng Act (”Special Audit 2022”) and (ii) an IT special audit from 2019, including the 2024 IT follow -up audit (the aforementioned regulatory audits including the related follow -up audits hereinafter collectively referred to as the ”Special Audits”), (iii) the adjustment of the remuneration system for the Management Board of flatexDEGIRO AG, (iv) the personnel changes in the Management Board and Supervisory Board and (v) the implementation of the selection procedure pursuant to Art. 16 para. 3 subpara. 2 of Re gulation (EU) No. 537/2014 ("EU APrVO") for a uniform group auditor by the Joint Risk and Audit Committee (”GRUPA”). Reporting on the work of the committees was a regula r component of the Supervisory Board meetings.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 19 flatexDEGIRO AG At the meetings of the full Supervisory Board in the past financial year, the following topics were mainly discussed and the following resolutions were passed . At its ordinary meeting on 06 February 2024, the Supervis ory Board dealt with remuneration issues. At the ordinary meeting on 26 February 2024, the Supervisory Board had the Management Board explain the guidance for 2024 and the current status of the processing of the key findings of the Special Audits. This was followed by a report on the work of GRUPA and the Nomination Committee (hereinafter also referred to as ”NA”). At the balance sheet meeting on 21 March 2024, the Supervisory Board first reviewed and approved the amended Declaration of Conformity with the German Corpora t e Governance Code dated 28 April 2022 (”GCGC”) in accordance with Section 161 AktG and had the Ch airman of the GRUPA explain the results of its reviews in preparation for the balance sheet meeting and its resolution recommendations to the Supervisory Board. Following its own prior review and in accordance with the recommendations of the GRUPA, the Sup ervisory Board adopted the combined corporate governance statement for flatexDEGIRO AG and the flatexDEGIRO Group for the 2023 financial year and approved the separate non -financial Group report for 2023. The Supervisory Board also reviewed and discussed t he Management Board's proposal for the appropriation of profits to the Annual General Meeting and concurred with this proposal. It then had the Management Board explain the annual and consolidated financial statements as of 31 December 2023, including the management report and Group management report, in detail. The auditor of the financial statements and consolidated financial statements for the 2023 financial year, BDO AG Wirtschaftsprüfungsgesellschaft, Hamburg (hereinafter ”BDO”) which participated in t he relevant agenda items, then reported in detail on the course and results of its respective audit and provided comprehensive answers to additiona l questions from the Supervisory Board members. The Supervisory Board noted and approved the results of the audit by BDO. The Supervisory Board's own final review and discussion of the annual and consolidated financial statements, taking into account the audit reports of BDO and GRUPA and their recommendations, did not give rise to any objections. The Supervisory Board approved the annual financial statements and consolidated financial statements, including the respective management report, in accordance with the GRUPA's resolution recommendations. The annual financial statements as of 31 December 2023 were thus adopted. The Supervisory Board was also informed in detail about the current status of the processing of the findings from the Special Audits. Internal Audit then reported on the current activities of the department and stated that the processing was proceeding according to schedule and that the special commissioner was satisfied with the processing. Finally, the Supervisory Board passed a resolution to hold the Annual General Meeting to be held on 4 June 2024 as a virtual Annual General Meeting in accordance with Section 118a AktG. At the ordinary meeting on 10 April 2024, the Supervisory Board unanimously resolved, following the recommendation of the GRUPA, to propose to the Annual General Meeting that Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellsch a f t, Düsseldorf (hereinafter “‘Baker Tilly” or ”Auditor”), as auditor of the annual and consolidated financial statements for the 2024 financial year and as auditor of the sustainability report for the 2024 financial year. The Supervisory Board also adopted the proposed resolutions for the virtual Annual General Meeting on 04 June 2024. Furthermore, the Supervisory Board adopted the resolution to approve the remuneration system for the members of the Management Board following the report of the Remuneration Control Committee (hereinafter also referred to as the “VKA”) and the GRUPA as well as the resolution to amend the Articles of Association following the exercise of share options. 22 April 2024, the Supervisory Board convened an extraordinary Supervisory Board meeting by way of a conference call at the request of the then Chairman of the Management Board, Mr. Frank Niehage. At the meeting, the Supervisory Board was informed by Mr. N iehage that he would be resigning from his positions on the Management Boards of flatexDEGIRO AG and flatexDEGIRO Bank AG with effect from the end of 30 April 2024. The Supervisory Board then decided to immediately publish an ad hoc announcement to this eff ect. On 05 May 2024, the Supervisory Board discussed the request by GfBk Gesellschaft für Börsenkommunikation mbH (”GfBk”) received on 03 May 2024 for additions to the agenda of the Annual General Meeting to be held on 0 4 June 2024.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 20 flatexDEGIRO AG It resolved to submit to the Annual General Meeting a negative resolution proposal by the Supervisory Board on each of the agenda items 13 and 14, which were supplemented at the request of GfBk, and to prepare a statement by the Chairman of the Supervisory Board for separate publication at a time in accordance with a further resolution. At the extraordinary meeting on 18 June 2024, which was also attended by representatives of BaFin and Deutsche Bundesbank, the Management Board first reported on the highlights of the first quarter of 2024 as well as the areas of finance, risk, technology and projects. The Annual General Meeting on 04 June 2024 was also discussed and Mr. Bernd Förtsch was welcomed as a newly elected member of the Supervisory Board. With regard to the key topics of the Annual General Meeting, the professional preparation and implementation, the voting results and the follow -up work were explained in particular. The timely payment of dividen ds was also discussed. The Management Board also reported on the Management Board meeting held at the beginning of May 2024 and current business developments. Another topic discussed at the meeting was the current status of the introduction of cryptocurrency trading, while the significant increase in revenue compared to the previous year and the reports from GRUPA, VKA and Internal Audit were also discussed in the area of finance and risk. With regard to the current search for a new CEO, the Supervisory Board discussed possible candidates with whom talks were held. The Supervisory Board also unanimously decided to extend the Management Board contracts of Mr. Dr. Benon Janos and Mr. Stephan Simmang due to their excellent work. At the extraordinary Supervisory Board meeting on 0 3 July 2024, which was once again attended by representatives of BaFin and Deutsche Bundesbank, the Supervisory Board dealt with the adoption of the remuneration system for the members of the Management Board, after the 2024 remuneration system was not app roved at this year's Annual General Meeting on 0 4 June 2024. The Supervisory Board also dealt with the contract extensions for Management Board members Mr. Dr. Benon Janos and Mr. Stephan Simmang. The allocation of Long-Term Incentives (”LTI”) to the Management Board was also discussed in detail. To this end, the Supervisory Board passed a corresponding resolution for each member of the Management Board, in which the member was allocated options from the 20 24 stock option plan. . Following detailed consideration, the Supervisory Board resolved on 05 July 2024 by circular resolution to apply the 2024 remuneration system on an interim basis for regulatory reasons and to determine the remuneration of the Management Board on the basis of the 2024 remuneration system. At the ordinary meeting on 19 September 2024, the Management Board reported on the current status of the introduction of crypto asset trading and customer recovery and reactivation. It also discussed the status of the 44 -IT and 44-REG projects and the implementation of CRR III. The Supervisory Board also discussed the business strategy. At its meeting on 24 September 2024, the Supervisory Board discussed open -ended considerations for optimising the Group structure of the flatexDEGIRO Group and received detailed information from the Management Board. The extraordinary Supervisory Board meeting on 22 November 2024 mainly focused on the Management Board's report on the strategic direction of the company and the Group. Other operational topics were also discussed. The Management Board provided an overview of the topic of customer and product analysis, which was explained in detail, as well as the topics of customer activation and VIP customer requirements. At the ordinary meeting on 28 November 2024, the Management Board provided the Supervisory Board with a general report on the 2024 financial year, discussing in particular the topics of crypto, product management and CRR III implementation. The Supervisory Board then approved a contribution of EUR 17.4 million by the company to the free capital reserve (Section 272 (2) no. 4 HGB) of flatexDEGIRO Bank AG (without issuing shares). The contribution to the free capital reserve was made from free funds of flatexDEGIRO AG to strengthen the equity base of flatexDEGIRO Bank AG. Other items on the agenda included reporting by Internal Audit on the status of the audit plan and the Findings Radar, discussion of the 2025 business and financial plan, the internal control system and the Special Audits, in particula r the BaFin IT follow-up audit 2024, the 2025 risk strategy and the IT strategy. A meeting was also held on 28 November 2024 to discuss the self -assessment of the Supervisory Board and its
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 21 flatexDEGIRO AG committees, which must be carried out at least once a year, as well as an assessment of the Management Board and its members by the Supervisory Board, which were subsequently resolved by circular resolution. Committees In order to perform its duties efficiently, the Supervisory Board has formed a total of three permanent committees from among its members, namely the GRUPA, Remuneration Control and Nomination Committees, with the followin g composition. Overview of the composition of each committee Committee Members of the Supervisory Board GRUPA Herbert Seuling (Chairman), resigned on 04/06/2024 Britta Lehfeldt (before 04/06/2024 as a member, since 04/06/2024 as Chairwoman) Martin Korbmacher Stefan Müller (from 04/06/2024) Aygül Özkan (since 19/09/2024) Nomination Committee Martin Korbmacher (Chairman) Stefan Müller Aygül Özkan Remuneration Control Committee Martin Korbmacher (Chairman) Aygül Özkan Herbert Seuling (resigned on 04/06/2024) Stefan Müller (since 13/06/2024) The Joint Risk and Audit Committee (GRUPA) held ten meetings in the reporting year; three of these meetings were held in presence, three by video conference and four as hybrid conferences. This committee dealt with the topics for which German and European law as well as the German Corporate Governance Code and its rules of procedure stipulate responsibilities for the committee. These include, in particular, the auditing and monitoring of acc ounting and the accounting process, including sustainability reporting and its implementation, the effectiveness of the internal control system, the risk management system, the internal audit system and the compliance management system as well as the audit of the financial statements. In addition, the GRUPA is responsible in particular for supporting the Supervisory Board in monitorin g the prompt rectification by management of any deficiencies identified by an auditor by means of appropriate measures and, in accordance with Article 16 (3) subparagraph 2 of the EU Audit Regulation, for conducting a selection procedure in relation to an auditor or audit firms. The main focus of this committee's work in the reporting year was the audit of the annual and consolidated financial statements for 2023, together with the associated management report and Group management report, including the Management Board's proposal for the appropriation of earnings, the combined declaration of the Management Board and the Supervisory Board on corpora te governance with regard to the declarations made by the Management Board and the separate non -financial Group report, the reports of t he auditor of the consolidated and annual financial statements for the 2023 financial year and the preparation of the Supervisory Board's resolution on these items. At its meeting on 23 January 2024, BDO reported on the preliminary results of the audit of the consolidated financial statements and the Group management report 2023 of Partial Report I in its capacity as
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 22 flatexDEGIRO AG auditor of the consolidated and annual financial statements for the 2023 financial year. On the same day, a joint meeting was also held with the Audit Committee of flatexDEGIRO Bank AG to update the Audit Tender 2024 (“Audit Tender 2024”). The regular Q1 m eeting on 25 February 2024 dealt with the updates on the quarterly reporting Q4 2023 regarding the 44- REG and 44 -IT projects, the internal audit, the update on the internal control system and the update on the Audit Tender 2024. At the meeting on 11 March 2024, BDO reported on the (preliminary) audit results of the audit of the annual financial statements and the finalisation of the 2023 audit of the annual financial statements. Following an intensive review, the Audit Committee reported to the Supervisory Board on the results of its audits, in particular at the meeting on 19 March 2024, and, taking into account the report by BDO, recommended that the Supervisory Board approve the annual financial statements and the consolidated financial statements as of 31 December 2023, including the corresponding management report for the 2023 financial year, and endorse the Management Board's proposal for the appropriation of profits. The topic of the meeting on 21 March 2024 was the final oral presentation of the bidders in the auditor selection process on the short list as well as the final discussion and evaluation of the final oral presentations and appearances of the bidders in the context of the Audit Tender 2024. In addition, at its meeting on 10 April 2024, this c ommittee dealt in particular with the results of the auditor selection process carried out and the validation of the associated GRUPA report on the selection process for the appointment of the future Group and annual auditor and gave the Supervisory Board its recommendation for the auditor selection proposal to the 2024 Annual General Meeting. The GRUPA also supported the Supervisory Board in reviewing the draft of the remuneration system for the members of the Management Board within the meaning of Section 25d (8) sentence 4 KWG and, in particular, in monitoring and assessing the effectiveness of the internal control system, the risk management system and the internal audit of the Group. At a joint meeting with the Audit Committee of flatexDEGIRO Bank AG on 03 June 2024, the GRUPA discussed the status of the 44-REG and 44 -IT project as well as the status of the internal audit. At a joint meeting with the Audit Committee on 18 September 2024, it again discussed the quarter 2 update on these projects. The GRUP A was continuously informed in this way by the auditor and the Management Board regarding both Special Audits. At the meeting held jointly with the Audit Committee of flatexDEGIRO Bank AG on 17 October 2024, the GRUPA dealt with the determination of key audit areas and the audit results of the audits. The auditor reported to the committees on the audit planning, in particular the presentation of key audit matters as well as the preparation of the annual and consol idated financial statements and the questioning of suspected fraud in the financial year. Representatives of the Auditor also took part in the committee meetings on topics relevant to the audit (relating to the audit of the financial statements and consolidated financial statements). The heads of relevant departments also reported on individual agenda items at the committee meetings and were available to answer questions; the Management Board was informed of this immediately. Between meetings, the chairperson of the committee, or from 04 June 2024 the chairperson of the committee, also regularly exchanged information with the auditors appointed for the respective financial year. In preparation for the balance sheet meeting in the 2025 financial year, the GRUPA recommended to the Supervisory Board, taking into account the auditor's reports and following its own detailed review, to approve the annual and consolidated financial statements for the 2024 financial year, including the summarised management report on th e annual and consolidated financial statements, to endorse the Management Board's proposal for the appropriation of profits, to approve the summarised corporate governance statement and to adopt the separate non -financial Group report. The Nomination Committee (NA) met once in person during the reporting year. At its meeting as well as in various informal discussions and interviews, it worked intensively on succession planning and appointment related agenda items for the Management Board and Supervisory Board, particularly in connection with the resignation of the former CEO and the selection process for a new CEO as well as in connection with the announcement by Mr. Korbmacher, Ms. Lehfeldt and Ms. Özkan on 28 November 2024 that they would not stand for a further term of office after the end of their current term of office. The Nomination Committee recommended that the Supervisory Board appoint Mr. Oliver Behrens as a further member of the Management Board and Chairman of the Management B oard of flatexDEGIRO AG from 01 October 2024. A corresponding appointment resolution was adopted by the Supervisory Board on 27 August 2024 by way of circulation. The Nomination
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 23 flatexDEGIRO AG Committee also supported the Supervisory Board in the evaluation of the structure, size, composition and performance of the Management Board and the Supervisory Board, which must be carried out at least once a year and for which the Nomination Committee ma de recommendations to the Supervisory Board, as well as in the self -assessment of the Supervisory Board and its committees and the evaluation of the knowledge, skills and experience of both the individua l members of the Management Board and Supervisory Boa rd and the respective body as a whole, which must also be carried out at least once a year. The Remuneration Control Committee (VKA) met eight times in the reporting year – two meetings in presence, one meeting by video conference and one by telephone conference and four as a hybrid conference. In particular, it supported the Supervisory Board in monitoring the involvement of the internal control units and other relevant areas in the design of the remuneration systems and assessed the impact of the remuneration systems . On 06 February 2024, the Remuneration Control Committee dealt with the assessment of the achievement of the targets of all members of the Management Board for 2023. It also discussed the targets for 2024 and the remuneration system for the members of the Manag ement Board. The subject of the meeting held on 25 February 2024 was the discussion of the L TI plan for 2024, the 2023 bonuses for the Management Board and, in an overall view, the 2023 compensation. At the meeting held by conference call on 16 April 2024, the Remuneration Control Committee reported on its review of the draft remuneration system for the members of the Management Board in accordance with Section 25d (8) sentence 4 KWG and unanimously recommended that the Supervisory Board approve the draft remuneration system for the Management Board and adopt it accordingly. On 13 June 2024, the VKA dealt with the effects of the resolution of the 2024 Annual General Meeting on the 2024 remuneration system and the outstanding remuneration components of the Management Board. At the meeting on 02 July 2024, the committee discussed the application of the 2023 or 2024 remuneration system and subsequently passed a resolution to recommend to the Supervisory Board that the 2024 remuneration system be applied for 2024. The meeting on 08 August 2024 focused on discussing the current situation regarding the variable remuneration for the Management Board, which was continued on 10 September 2024. At this meeting, the committee also agreed on the amount of the short-term incentives ("STI") for 2023. At the Quarter 3 meeting on 18 September 2024, the Remuneration Control Committee discussed the current sta tus of the topics from the previous meetings. On 27 November 2024, the Remuneration Control Committee met to discuss the employee remuneration strategy and to agree the timeline for the STI 2024, STI 2025 and the Management Board remuneration system.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 24 flatexDEGIRO AG Meeting attendance During the reporting period, the members of the Supervisory Board attended the meetings of the Supervisory Board and the committees of which they were members as follows. Participation took place either in person or by video or telephone conference. Overview of meeting attendance by members of the Supervisory Board Supervisory Board plenum GRUPA Nomination Committee Remuneration Control Committee Quantity in % Quantity in % Quantity in % Quantity in % Martin Korbmacher Chairman of the Supervisory Board 12/12 100 10/10 100 1/1 100 8/8 100 Stefan Müller Deputy Chairman of the Supervisory Board 12/12 100 2/2 100 1/1 100 5/5 100 Bernd Förtsch (from 04/06/2024) 6/6 100 --- --- --- --- --- --- Britta Lehfeldt 11/12 92 10/10 100 --- --- --- --- Aygül Özkan 11/12 92 0/1 0 1/1 100 8/8 100 Herbert Seuling (resigned on 04/06/2024) 6/6 100 8/8 100 --- --- 3/3 100 Tot a l 96.7 96.8 100 100 Composition of the Supervisory Board and Management Board At the beginning of the reporting year, the Supervisory Board consisted of Mr. Martin Korbmacher (Chairman of the Supervisory Board), Mr. Stefan Müller (Deputy Chairman), Ms. Aygül Özkan, Ms. Britta Lehfeldt and Mr. Herbert Seuling. At the end of the Annual General Meeting on 04 June 2024, Mr. Herbert Seuling resigned from the Supervisory Board at his own request; Mr. Bernd Förtsch was elected to the Supervisory Board as his successor by the Annual General Meeting. There were also personnel changes in the committees of the Supervisory Board. Following the resignation of Mr. Herbert Seuling from the Supervisory Board, Ms. Britta Lehfeldt was elected Chairwoman of the GRUPA with effect from 0 4 June 2024. In addition, Mr. Stefan Müller was elected as a new member of the GRUPA to replace Mr. Herbert Seuling with effect from 04 June 2024 and as a new member of the VKA with effect from 0 4 June 2024. In addition, Ms. Aygül Özkan was appointed as the fourth member of the GRUP A on 19 September 2024. There were also personnel changes on the Management Board in the reporting year. At the beginning of the reporting period, the Management Board consisted of Mr. Frank Niehage as Chairman of the Management Board and Chief Executive Officer (CEO) and the Man agement Board members Mr. Dr. Benon Janos as Chief Financial Officer (CFO), Mr. Stephan Simmang as Chief Technology Officer (CTO) and Ms. Christiane Strubel, who has been responsible for the Chief Human Resource Officer (CHRO) department as an additional m ember of the Management Board of
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 25 flatexDEGIRO AG flatexDEGIRO AG since 01 January 2024. Mr. Frank Niehage resigned from the Management Board with effect from the end of 30 April 2024. Since then, the Management Board has been led on an interim basis by Mr. Dr. Benon Janos and Mr. Stephan Simmang as Co -CEOs. On 01 October 2024, Mr. Oliver Behrens was appointed as the new Chairman of the Management Board and CEO of flatexDEGIRO AG (and flatexDEGIRO Bank AG). In addition, Mr. Dr. Benon Janos was appointed Deputy Chairman of the Management Board / Deputy CEO of flate xDEGIRO AG with effect from 01 October 2024. Accordingly, upon adoption of this report on 20 March 2025, the Management Board will consist of Mr. Oliver Behrens as Chairman of the Management Board / CEO, Mr. Dr. Benon Janos as Deputy Chairman of the Manage ment Board / Deputy CEO and CFO, Mr. Stephan Simmang as CTO and Ms. Christiane Strubel as CHRO. Corporate Governance The Supervisory Board and Management Board act in the knowledge that good corporate governance is an important basis for the success of the company and the Group. The corporate governance of flatexDEGIRO AG and the Group is explained in detail in accordance with Principle 23 of the GCGC in the combined corporate governance statement for the 2024 financial year; this will be available on the flatexDEGIRO AG website at www.flatexdegiro.com/en/investor-relations/ corporat e- governance for at least five years. The current declaration of compliance within the meaning of Section 161 AktG on the basis of the German Corporate Governance Code will be made publicly available by the Management Board and Supervisory Board for at least five years on the website of flatex DEGIRO AG at www.flatexdegiro.com/en/investor-relations/ corporat e- governance. The Supervisory Board regularly assesses how effectively it as a whole and its committees perform their duties (self - assessment in accordance with recommendation D.12 of the GCGC). This includes, among other things, the organizational, personnel and content-related performance of the respective committee, the structure and processes of cooperation within the committee and the provision of information, in particula r by the Management Board. The last self -assessment was carried out internally by the end of De cember 2024 using questionnaires created specifically for this purpose and expanded compared to the previous year. The Supervisory Board was supported in this by the Nomination Committee and its recommendation in this regard. The work of the Supervisory Board and its committees was rated as efficient and positive overall. The results also confirm the efficien t organization and conduct of meetings and the appropriate provision of information. There was no fundamental need for change. In the 2024 financial year, the Chairman of the Supervisory Board conducted a very intensive dialog with almost all major institutional investors. The discussions focused in particula r on general corporate management issues, the emergence and processing of findings from the S pecial Audits, the composition and qualifications of the Supervisory Board and the company's Management Board as well as the remuneration system for Management Board members and remuneration reporting. For the duration of his term of offi ce, the Chairman of the Supervisory Board continues to be prepared to hold discussions with investors on Supervisory Board-specific topics within an appropriate framework . Training and further education programs In the reporting year, the members of the Supervisory Board and Audit Committee undertook the training and further education measures required for their duties on their own responsibility and were supported by the company. The training measures carried out in the reporting year to maintain and expand the necessary expertise included both external training and internal briefings on curren t topics. In particular, the training measures covered aspects of accounting and auditing and their monitoring by the Audit Committee (including practical aspects of monitoring the quality of an auditor), monitoring the internal control and risk management system, the area of cyber security and related current regulatory industry topics (e.g. DORA requirements) as well as sustainability reporting requirements (CSRD and EU taxonomy). For the new member Mr. Bernd Förtsch, who joined the Supervisory Board, extensive individual introductory courses were developed and carried out to make it easier for him to take office.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 26 flatexDEGIRO AG Examination of possible conflicts of interest In accordance with the recommendations of the German Corporate Governance Code, each member of the Supervisory Board discloses any conflicts of interest that may arise to the Chairman of the Supervisory Board without delay. If necessary, the Supervisory Board members agree on how to deal with any conflicts of interest that may arise. In connection with an action for annulment brought against flatexDEGIRO AG after the Annual General Meeting on 0 4 June 2024 by GfBk Gesellschaft für Börsenkommunikation mbH, i n which Supervisory Board member Bernd Förtsch indirectly holds 100% of the shares, against the rejection of the motion to dismiss the Chairman of the Supervisory Board, Mr. Förtsch did not participate in the Supervisory Board's deliberations on this issue and the resolutions passed in this regard and was not given access to the relevant documents . Audit of the Annual and Consolidated Financial Statements 2024, Summarized Corporate Governance Statement for the Financial Year 2024 and Separate Non-Financial Group Report 2024 The Supervisory Board examined whether the annual and consolidated financial statements and other financial reporting comply with the applicable requirements, in particular with regard to legality, regularity and expediency. This also included an audit of the combined corpora te governance statement for flatexDEGIRO AG and the flatexDEGIRO Group as well as the separate non -financial Group report as of 31 December 2024 . Baker Tilly GmbH & Co KG Wirtschaftsprüfungsgesellsch a f t, Düsseldorf audited the annual and consolidated financial statements prepared by the Management Board as of 31 December 2024 and the combined management report on the annual and consolidated financial statements for the 2024 financial year, including the accounting records, and issued an unqualified audit opinion in each case. The annual financial statements of fla texDEGIRO AG and the combined management report were prepared in accordance with German legal requirements. The consolidated financial statements were prepared on the basis of Internationa l Financial Reporting Standards (" IFRS "), as adopted by the European Union, and the additional requirements of German law pursuant to Section 315e (1) of the German Commercial Code ("HGB"). The auditor conducted the audit in accordance with Section 317 HGB and the EU Audit Regulation (No. 537/2014) and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Baker Tilly acted for the first time as auditor of flatexDEGIRO AG and the flatexDEGIRO Group for the financial statements for the 2024 financial year in accordance with the Group-wide auditor selection procedure. The signatories of the respective auditor's report on the audit for the 2024 financial year are Mr. Prof. Dr. Thomas Edenhofer, German Public Auditor, and Mrs. Sandra Köhler, German Public Auditor, as the responsible auditor. Both have signed the respective audit opinion for the first time for the financial year 2024. The Supervisory Board - like the GRUPA - regularly review ed the required independence of Baker Tilly, in particular as part of the tender and auditor selection process, and satisfied itself of this, also taking into account non -audit services. There were no circumstances that could give rise to concern s about the auditor's impartiality. The review was carried out both before the resolution on the Supervisory Board's proposal to the Annual General Meeting to elect Baker Tilly as auditor and Group auditor for the 2024 financial year and as auditor for any audit review of interim financial reports in the 2024 and 2025 financial years until the next Annual General Meeting and as auditor of the sustainability report, as well as regularly afterwards, most recently at the balance sheet meeting on 20 March 2025. Following the 2024 Annual General Meeting, which followed the Supervisory Board's election proposal, the GRUPA, represented by its Chairwoman, commissioned Baker Tilly with the audit. At its meeting on 17 October 2024, the GRUPA had Baker Tilly explain the audit planning and agree on the focal points of the audit. The aforementioned accounting documents, including the Management Board's proposal for the appropriation of net retained profits, the combined corporate governance statement for flatexDEGIRO AG and the flatexDEGIRO Group and the separate non -financial Grou p report as of 31 December 2024, were submitted to all members of the
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 27 flatexDEGIRO AG GRUPA and the Supervisory Board in good time. The same applies to the written audit reports from Baker Tilly. The GRUPA and the Supervisory Board had already received drafts of these documents in advance. The annual and consolidated financial statements, including the combined management report and the Management Board's proposa l for the appropriation of profits were discussed in detail at the G R U PA meetings on 13 March 2025 and 20 March 2025, which were also attended by the auditor. The GRUPA dealt in particular with the key audit matters described in the respective auditor's report, including the audit procedures performed. The GRUPA's audit also included the combined corporate governance statement for flatexDEGIRO AG and the flatexDEGIRO Group and the sep arate non -financial Group report as of 31 December 2024, including the disclosures on the EU taxonomy. For its part, the Supervisory Board examined the annual and consolidated financial statements and the combined management report in detail, in particular with regard to legality, regularity and expediency, and took note of the audit reports by Baker Tilly as well as the reporting and recommendations of GRUPA based on its audit. It paid particular attention to the key audit matters contained in the audit op inions, the resulting risks for the respective financial statements, the audit procedures described in each case and the respective conclusions of Baker Tilly. In addition to the Management Board, the Auditor also attended the Supervisory Board's meeting on 20 March 2025 to discuss the relevant items on the agenda and reported on the scope, focus and key findings of its audit. All significan t issues relevant to t he financial statements and the audit, including the key audit matters presented in the audit opinions and the related audit procedures and conclusions of the Auditor, were discussed in detail with Baker Tilly. The Auditor did not identify any material wea knesses in the internal control system or the risk management system in relation to the accounting process, the internal audit system or compliance. The status of the processing of findings from Regulatory Audits in the Group was discussed continuously an d intensively by the Supervisory Board, also with the involvement of the member of the Management Board of flatexDEGIRO Bank AG responsible for managing the processing project, Mr. Steffen Jentsch, and approaches to solutions and measures were discussed and examined. The mandate of the BaFin spe cial commissioner at flatexDEGIRO Bank AG was terminated on 30 September 2024 due to the successful elimination of the serious deficiencies from the 2022 special audit by the company and the corresponding audit by the special commissioner. Additional quest ions from the Supervisory Board members were answered in detail by the Auditor. The Supervisory Board acknowledged and approved the results of the audit by Baker Tilly. Following the final result of the audit by GRUPA and its own review, the Supervisory Board had no objections to raise; this also applies to the Management Board's proposal for the appropriation of profits and the combined corporate governance statement, even if it is not to be reviewed by the Auditor. In this context, the separate non - financial Group report prepared by the flatexDEGIRO Group for the 2024 financial year as of 31 December 2024 was also discussed in detail following an explanation by the Management Board. Like the GRUPA, the Supervisory Board had no objections following its review of the separate non - financial Group report for the 2024 financial year. In accordance with the recommendation of the GRUPA, the combined corporate governance statement was adopted and the separate non -financial Group report for the 2024 financial year w as approved. In accordance with the recommendation of the GRUPA, the Supervisory Board approved the annual financial statements and the consolidated financial statements of the flatexDEGIRO Group for the 2024 financial year prepared by the Management Board; the annual financial statements are thus adopted. The Supervisory Board concurred with the Management Board's proposal on the appropriation of profits. In its assessment of the position of the company and the Group, the Supervisory Board concurs with the Management Board's assessment in its combined management report. At the end of the meeting, the report of the Supervisory Board was adopted following a detailed review.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 28 flatexDEGIRO AG Remuneration Report in accordance with Section 162 AktG The remuneration report was prepared by the Management Board and Supervisory Board for the 2024 financial year in accordance with Section 162 (1) sentence 1 AktG. The auditor formally audited the remuneration report separately with regard to the existence of the disclosures pursuant to Section 162 (1) and (2) AktG without objections and issued an unqualified opinion. Acknowledgement The Supervisory Board would like to express its specia l thanks and appreciation to the members of the Management Board, in particular the retired CEO Mr. Frank Niehage, resigned Supervisory Board member Mr. Herbert Seuling and all employees of flatexDEGIRO AG and all Group companies, who have contributed to the positive development of the company in the past year with great personal commitment in what continue to be challenging t imes. Frankfurt am Main, 20 March 2025 For the Supervisory Board Martin Korbmacher Stefan Müller Chairman of the Supervisory Board Deputy Chairman of the Supervisory Board
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C om bi ned M anag em ent Repor t Fundamentals of the Group 31 Economic report 48 Economic development of flatexDEGIRO AG 72 Forecast and opportunities report 77 Risk report 81
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 30 flatexDEGIRO AG Basis of presentation Pursuant to Section 315 (5) HGB in conjunction with Section 298 (2) sentence 2 HGB [German Commercial Code], a Combined Management Report for flatexDEGIRO AG was prepared for the first time for financial year 2024. This includes the Group Management Report and the condensed management report of the company, which is presented in the chapter “Development of flatexDEGIRO AG”. This Combined Management Report of flatexDEGIRO AG (hereinafter referred as “ flatexDEGIRO”, “Group”, “flatexDEGIRO Group” or “Group of companies”) has been prepared in accordance with Sections 315 and 315a HGB and the German Accounting Standards (DRS) 20. All contents and information in this report relate to the balance sheet date 31 December 2024 or the financial year ending on that date. The personal pronouns “we”, “us” and “our” used in this Combined Management Report refer to flatexDEGIRO AG including its subsidiaries. Forward-looking statements This Combined Management Report may contain forward - looking statements and information, which may be identified by formulations using terms such as “expects”, “aims”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “shall” or similar. Such forward -look in g statements are based on our current expectations and certain assumptions, which may be subject to a variety of risks and uncertainties. The results actually achieved by flatexDEGIRO AG may substantially differ from these forward - looking statements. flatexDEGIRO AG assumes no obligation to update these forward- looking statements or to correct them in case of developments which differ from those anticipated.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 31 flatexDEGIRO AG 1 Fundamentals of the Group 1.1 Business model of the Group The flatexDEGIRO Group at a glance In the area of financial services and financial technology, flatexDEGIRO AG and its subsidiaries offer online brokera ge and IT solutions for banking and securities with high standards of security, performance and quality. The focus of our business activities is online brokerage. flatexDEGIRO considers itself to be one of the largest retail online brokers in Europe in terms of geographic scope and the number of transactions settled and customers serviced. The Group’s parent company is flatexDEGIRO AG, a European provider of financial technologies. Its business activities consist of the development, supply and operation of future-proof and efficient IT solutions for the settlement of securities and payment t ransactions. This mainly comprises the supply and operation of the IT infrastructure for private customers of the flatexDEGIRO Group, which guarantees the settlement of customer transactions in 16 European countries. The consolidated financial statements presented here are those of flatexDEGIRO AG and its subsidiaries. flatexDEGIRO AG is a German company with registered offices in the Omniturm, Grosse Gallusstrasse 16 -18, 60312 Frankfurt. It is listed on the regulated market of the Frankfurt stock exchange, with additional post -admission duties (Prim e Standard) (S -DAX, W KN: FTG111, ISIN: DE000FTG1111 / ticker symbol FTK.GR). flatexDEGIRO AG holds a direct 100% stake in Cryptoport GmbH, Xervices GmbH, and flatex Finanz GmbH, as well as a 20% interest in financial.service.plus GmbH. flatexDEGIRO AG also holds, via flatex Finanz GmbH, an indirect 100% stake in flatexDEGIRO Bank AG, Frankfurt. The subsidiary flatexDEGIRO Bank AG, Frankfurt, which is included in the consolidated financial statements, operates a branch office in the Netherlands under the name flatexDEGIRO Bank Dutch Branch, which has its registered office in Amsterdam, and one branch office in Austria under the name flatexDEGIRO Bank AG, with registered offices in Graz. The corporate structure of flatexDEGIRO AG and its consolidated subsidiaries and sub -subsidiaries is illustrated below. Corporate structure of flatexDEGIRO AG flatexDEGIRO UK Ltd. was liquidated in December 2024. The online services brokerage for the UK market continues to be provided on a cross -border basis by flatexDEGIRO Bank Dutch Branch via the DEGIRO brand. Otherwise, there were no changes in the Group’s corpora te structure in financial year 2024 compared with the previous year.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 32 flatexDEGIRO AG 1.2 Management of the Group The management of flatexDEGIRO AG is the responsibility of the Management Board, which consists of the following members as of 31 December 2024. Management Board of flatexDEGIRO AG With effect from 1 October 2024, Oliver Behrens was appointed CEO of flatexDEGIRO AG and flatexDEGIRO Bank AG. Oliver Behrens brings over 40 years of experience in the European financial industry. From 2015 to June 2024, Oliver Behrens lately was CEO of Morgan Stanley Europe Holdin g SE, Morgan Stanley Europe SE and Morgan Stanley Bank AG, Frankfurt am Main, as well as Member of the Board of Morgan Stanley International Limited, London. Moreover, unt il 2014, he also served as Member of the Board of Deka Bank for nine years, lately as Deputy CEO. From 1992 to 2005, he worked in Frankfurt and Luxembourg, among others, across various functions in the former DWS Group, DWS and Deutsche Asset Management, where he lately was Spokesman of the Management Board of Deut sche Asset Management Investment GmbH. Since June 2024, Oliver Behrens is Chairman of DWS Group GmbH & Co. KGaA ’s Supervisory Board. Oliver Behrens took over from Dr Benon Janos and Stephan Simmang, who, since May 1, 2024, served as interim Co-CEOs of the Company, in addition to their existing responsibilities as CFO and CTO, respectively. Furthermore, Dr Benon Janos (CFO) was appointed Deputy CEO of flatexDEGIRO AG as of 1 October 2024. Dr Benon Janos will also perform this function at flatexDEGIRO Bank AG. Furthermore, the Supervisory Board of flatexDEGIRO has decided to extend the Management Board contracts with Dr Benon Janos (Deputy CEO and CFO) and Stephan Simmang (CTO) until 31 May 2029. With effect from 30 April 2024, Frank Niehage, CEO since August 2014, resigned from his position as CEO of flatexDEGIRO AG and all other Group mandates due to differing views on the strategic development. flatexDEGIRO’s Management Board is supported by an extended Management team. In addition to the Management Board members above, the heads of risk management, process management and securities settlements processing are members of the Management Board (except CHRO) of flatexDEGIRO Bank AG.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 33 flatexDEGIRO AG Management Board of flatexDEGIRO Bank AG As of 31 December 2024, the Supervisory Board of flatexDEGIRO AG consisted of the following members. Supervisory Board of flatexDEGIRO AG Bernd Förtsch was elected to the Supervisory Board of flatexDEGIRO AG by resolution of the Annual General Meeting on 4 June 2024 after Herbert Seuling, a long - standing member of the Supervisory Board, resigned from his position as a member of the Supervisory Board for persona l reasons with effect from the end of the Annual General Meeting on 4 June 2024. Bernd Förtsch completed his training as a tax clerk at a tax law firm in Kulmbach and successfully passed the
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 34 flatexDEGIRO AG examination to become a state -certified accountant. Bernd Förtsch then worked as head of payroll and financial accounting and later as managing director at a company in the automotive industry. In 1990, he founded Börsenbuch -Verlag Förtsch KG, which specialised in the distribution of financial publications, in particular books. In 1998, he founded Börsenmedien Aktiengesellschaft in Kulmbach, which is now the leadin g specialist publisher of financ ial information in German - speaking countries with the stock market publications “Der Aktionär”, “BÖRSE ONLINE”, “€uro am Sonntag”, the monthly magazine “€uro” and various stock market letters. This success is partly attributable to the acquisition of Münch ener Finanzen Verlag GmbH in 2021. In 1999, Bernd Förtsch founded PRE.IPO AG, the predecessor of today’s flatexDEGIRO AG. In addition to several other supervisory board mandates, Bernd Förtsch has already spent several years on the supervisory board of today’s flatexDEGIRO AG and its affiliated companies. In addition to his chairmanship of the Management Board of Börsenmedien Aktiengesellschaft and his involvement with flatexDEGIRO AG, Bernd Förtsch is also invested in early - stage high -growth companies through his investment companies BF Holding GmbH and th e listed company Heliad AG. The current declaration on corporate governan ce pursuant to Sections 289f and 315d HGB can be downloaded from the flatexDEGIRO AG website at www.flatexdegiro.com/en/investor-relations/ corporat e- governance. The current declaration of compliance within the meaning of Section 161 of the German stock corporation act (AktG) based on the German Corporate Governance Code as amended on 28 April 2022 is also made publicly available on the flatexDEGIRO AG website at www.flatexdegiro.com/en/investor-relations/ corporat e- governance, as are the declarations of compliance and the corporate governance declarations for the last five years. 1.3 Remuneration system of the Management Board and Supervisory Board The members of the Management Board of flatexDEGIRO AG receive fixed and variable remuneration components as well as share -based payments. Generally , no post -employment benefits are provided for members of the Management Board. Exceptions may include individually agreed compensation for any post -contractual non- competit ion clauses in individual cases. The members of the Supervisory Board of flatexDEGIRO AG only receive a fixed remuneration component. For further disclosures, we refer to Note 3 1 in the notes to the consolidated financial statements and to the remuneration report as part of these consolidated financial statements. 1.4 Disclosures pursuant to Sections 289a and 315a HGB 1. Composition of subscribed capital The subscribed capital (share capital) of flatexDEGIRO AG on the balance sheet date was EUR 110,132,548.00 and is divided into 110,132,548 no-par registered shares. All shares are fully paid up. With the exception of treasury stock shares, from which the company has no rights, each share grants the same rights. The rights and obligations arising from the shares are based on the statutory provisions, in particular Sections 12, 53a et seqq., 118 et seqq. and 186 AktG. Each flatexDEGIRO AG share entitles the h older to one vote at the Annual General Meeting and, with the exception of any new shares not entitled to dividends, to an equal share of the profit in accordance with a dividend distribution resolved by the Annual General Meeting. Treasury stock shares he ld by the company are excluded from this entitlement. As of 31 December 2024, the company held 2,100,354 treasury stock shares, which were repurchased by flatexDEGIRO AG as part of its share buyback programme that began on 01 October 2024 up to the balance sheet date.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 35 flatexDEGIRO AG 2. Restrictions and relevant agreements on voting rights and share transfers The Management Board is not aware of any agreements with shareholders of flatexDEGIRO AG on the balance sheet date that contain restrictions affecting voting rights or share transfers. There are statutory restrictions on voting rights which apply, e.g. pur suant to Section 44 (1) of the German Securities Trading Act (WpHG) (violation of notification obligations), Section 71b AktG (rights from treasury stock shares), and Section 136 (1) AktG (exclusion of voting rights in certain conflicts of interest). 3. Equity participations exceeding 10% of voting rights As of the balance sheet date (31 December 2024), the following indirect or direct equity participations exceed 10% of the voting rights. Mr Bernd Förtsch, Germany, notified us on 27 October 2023 that his voting right share in flatexDEGIRO AG on 12 October 2023, held directly or indirectly, was 21,112,968 voting rights or 19.20%. At this time, the total number of voting rights in accordance with Section 41 WpHG was 109,952,548, with 1,586,428 voting rights or 1.44% of voting rights held directly by Mr Förtsch; 19,526,540 voting rights or 17.76% of voting rights were attributed to Mr Förtsch via his equity participations in GfBk Gesellschaft f ür Börsenkommunikation mbH (“GfBk”), Kulmbach, and Heliad AG, Frankfurt. At that point, GfBk held a direct stake of 13.08% in the share capital of flatexDEGIRO AG. At that point in time, BFF Holding GmbH (“BFF”), as a 100 %-owned parent company of GfBk, in direct ly held 13.08% of the share capital of flatexDEGIRO AG via its equity participation in GfBk. Up to the balance sheet date, the Management Board had not been informed by GfBk, BFF or Mr Förtsch of any further instances of thresholds being met as defined by Section 33 Paragraph 1 WpHG. 4. Shares with special rights There are no flatexDEGIRO AG shares that grant any special rights. 5. Control of voting rights where employees hold capital shares and do not directly exercise their control rights The Management Board is not aware of any employees who hold shares in the capital of flatexDEGIRO AG and do not directly exercise their control rights in the same manner as other shareholders, in accordance with the statutory provisions and the Articles of Association. 6. Provisions for the appointment and dismissal of members of the Management Board and amendment of the Articles of Association The provisions relevant to the appointment and dismissal of members of the Management Board can be found in Sections 84 and 85 AktG, as well as in Section 6 of the Articles of Association. The Articles of Association of flatexDEGIRO AG do not contain any provisions which deviate from the statutory regulations in this respect. Amendments to the Articles of Association are made in line with the provisions of Sections 179 et seqq., and 133 AktG and Section 4 (3 to 7) (here in each case in the last sentence) and Section 18 (2) of the Articles of Association. In as far as amendments affect only the wording, they may be made by resolution of the Supervisory Board in the cases defined in Section 4 (3 to 7) of the Articles of Association. Section 18 (2) of the Articles of Association, in conjunction with Section 179 (2) sentence 2 AktG, sets out that resolutions of the Annual General Meeting shall be passed by simple majority of the votes cast and, if the law specifies a capital majority in addition to the voting majority, by simple majority of the voting capital that is represented at the time the resolution is voted on, subject to mandatory statutory specifications or provisions to the contrary. 7. Management Board’s authority, particularly to issue and repurchase shares Issue of shares: As of the balance sheet date, the Company has the following authorised capital which, subject to approval by the Supervisory Board, the Management Board may use to create and issue new shares .
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 36 flatexDEGIRO AG — Authorised capital 2021/I pursuant to Section 4 (3) of the Articles of Association: Issuance of up to 43,600,000 shares, with the possibility of excluding pre -emptive rights under certain conditions and with the approval of the Supervisory Board; — Authorised capital 2021/II pursuant to Section 4 (6) of the Articles of Association: Issuance of up to 10,800,000 shares, subject to certain conditions, within defined limits and with the approval of the Supervisory Board; possibility of excluding subscription rights. The total shares issued in accordance with this authorisation with the exclusion of subscription rights against cash contributions may not account for more than 10% of the subscribed share capital (both at the time the resolution is passed and at the time the new shares are issued) and the issue price may not be significantly lower than the stock market price at the time the final issue price is determined. When it comes to calculating the 10% limit, the proportionate amount of the share capita l attributable to new or repurchased shares that have been issued or sold since 29 June 2021 under simplified exclusion of subscription rights pursuant to or in accordance with Section 186 (3) sentence 4 AktG must be deducted. In addition, the Company has the following conditional capital which, subject to approval by the Supervisory Board, the Management Board may use to create and issue new shares. — Conditional capital 2014 pursuant to Section 4 (4) of the Articles of Association: issuance of up to 1,292,000 shares (2014 share options programme); — Conditional capital 2015 pursuant to Section 4 (5) of the Articles of Association: issuance of up to 2,000 shares (2015 share options programme); — Conditional capital 2024 pursuant to Section 4 (7) of the Articles of Association: issuance of up to 5,501,627 shares (2024 share options programme); — Conditional Capital 2018/II pursuant to former Section 4 (6) of the Articles of Association (in the version of the Articles of Association prior to 19 February 2024) expired at the close of 6 August 2023. Until this date it served to secure the potential i ssue of up to 14,400,000 shares (in connection with the issue of debt instruments in the form of convertible bonds and/or bonds with warrants). No use was ever made of the authorisation to issue the corresponding debt instruments. On the basis of its authorisation the Supervisory Board decided on 06 February 2024 to amend the Articles of Association, deleting the expired Conditional capital 2018/II defined in former Section 4 (6) of the Articles of Association (before the amendment on 19 February 2024) and renumbering the following paragraph in Sect ion 4 accordingly. The amendment took effect when it was entered in the commercial register on 19 February 2024. As of the balance sheet date, the company was authorised to acquire treasury stock shares as follows. By resolution of the General Meeting on 04 June 2024, the company is authorised until the end of 03 June 2029 to acquire treasury stock for any permissible purpose up to a total of 10% of the company’s subscribed share capital existing at the time of the resolution on this authorisation or, if this value is lower, of the subscribed share capital existing at the time this authorisation is exercised. At the discretion of the Management Board, treasury stock shares may be acquired via the stock exchange or through a public purchase offer addressed to all shareholders or through a public invitation to all s hareholders to submit an offer to sell. The acquisition may also be made via one or more multilatera l trading facilities as outlined in Section 2 (6) of the German Stock Exchange Act (“MTF”). Alternatively, the acquisition may be made (to this extent limit ed to an amount of up to 5% of the subscribed share capital existing at the time of the resolution of the Annual General Meeting or, if this value is lower, of the share capital existing at the time of the respective exercise of the authorisation) by using derivatives (put options, call options, forward purchases or a combination of these instruments), whereby the term of the derivatives may not exceed 18 months in each case and must be determined in such a way that the shares are acquired by exercising the derivatives no later than 0 3 June 2029. The Management Board was also authorised to use the company’s treasury stock acquired based on this authorisation or in any other way for all legally permissible purposes. The shares may be offered, promised or transferred to employees of the company or to shareholders of affiliated companies as well as to members of the management of affiliated companies. Alternatively, the shares may be used to service issued convertible bonds and/or bonds with warrants, excluding shareholders’ pre -emptive rights in conne ction with share -based compensation or option programmes. The acquired shares can also be issued
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 37 flatexDEGIRO AG to members of the company’s Management Board, excluding shareholders’ pre -emptive rights, as part of variable compensation in fulfilment of applicable remuneration agreements or sold in return for non -cash contributions (particularly in connection with bus iness combinations and acquisitions). Alternatively, the acquired shares can be sold to third parties in return for cash contributions at a price that is not significantly lower than the market price at the time of sale. Treasury stock can also be cancelled. Based on the authorisation to acquire treasury stock shares granted by the General Meeting on 04 June 2024, the Management Board, in consultation with the Supervisory Board, passed a resolution on 30 September 2024 to implement a share buyback programme of up to mEUR 50 (excluding incidental acquisition costs). The share buyback programme began on 01 October 2024 and will end on 07 May 2025 at the latest. From 01 October 2024 to 31 December 2024, 2.1 million treasury stock shares were acquired from the capital market as part of the share buyback programme. As of the balance sheet date, 1.91% of the already issued shares (110.1 million shares) had therefore been repurchased. As of the balance sheet date, there are still 108.0 million shares outstanding. The amortised costs (excluding incidental costs) of the treasury stock shares held in full as of the balance sheet date amount to kEUR 28,692. For further details, we refer to the consolidated financial statements of flatexDEGIRO AG. 8. Significant company agreements that are subject to a change of control resulting from an acquisition offer, including the resulting effects, and compensation agreements of the company that have been concluded with the members of the Management Board or with employees in respect of a takeover offer At the level of flatexDEGIRO AG, there are no significant agreements with change -of-control clauses in the event of a takeover. In particular, there are no further compensation agreements with members of the Management Board or employees in the event of a takeover offer. At the level of flatexDEGIRO Bank AG, there are contracts which contain change -of-control clauses that permit the respective parties and/or contractual partner to terminate their cooperation with flatexDEGIRO Bank AG in the event of a change of control at flatexDEGIRO AG. Under these contracts, a “change of control over flatexDEGIRO AG” occurs (i) when the majority of the shares of flatexDEGIRO AG or the majority of the voting rights of flatexDEGIRO AG or substantially all of the assets of flatexDEGIRO AG are acquired by a third party, or (ii) if a third party gains a controlling influence over flatexDEGIRO AG in any other way within the meaning of Section 17 AktG. There are no compensation agreements with members of the Management Board or employees at the level of flatexDEGIRO Bank AG in the event of a takeover offer.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 38 flatexDEGIRO AG 1.5 Employees and locations As of the reporting date, flatexDEGIRO AG has business operations at nine locations in Germany and one site each in the Netherlands, Austria and Bulgaria. The flatexDEGIRO Group employed an annual average of 1,271 employees (previous year: 1,285). Advanced conferencing software enables flatexDEGIRO employees to work mobile, reducing the impact that travellin g to and from work every day has on both our employees and the environment. flatexDEGIRO generally offers a hybrid working time model for all em ployees whose professiona l activities permit it. In addition, flatexDEGIRO avoids unnecessary business travel where possible, and is driving forward measures to promote e -mobility. Continuous learning and further development of our employees are crucial for our sustainable entrepreneuria l success. To this end, flatexDEGIRO has established and expanded a range of targeted development and training opportunities for career starters, middle management employees and experienced managers. Since healthcare is generally available, flatexDEGIRO promotes opportunities for its employees to receive prevent ive vaccinations and occupational health check-ups. The attractiveness of flatexDEGIRO as an employer was confirmed both in a Group -wide employee survey and by a number of external awards such as the “Top Employer” seal in 2024. This is also reflected in the best rating of all online brokers on the German e mployer rating platform kununu.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 39 flatexDEGIRO AG By deploying SAP SuccessFactors® as a professional HCM solution, flatexDEGIRO supports its employees during each phase of the employee lifecycle and simplifies the globa l collaboration between employees in their daily work. 1.6 Products and services The flatexDEGIRO Group offers full service from a single source; from end customer business in the field of online brokerage to efficient securities settlements and payment transactions processing, as well as the development and operation of innovative IT technologies for the banking and the securities sectors. As an innovative company in the financial sector which has its own in-house IT and full banking licence, flatexDEGIRO AG is distinguished by an exceptionally high level of vertical integration and is only dependent on external service providers to a minor extent. Within the two reporting segments “flatex” and “DEGIRO”, the majority of offered products and services are similar. Any special aspects are discussed in the respective segment - specific comments on business performance. Core business online brokerage With flatex, ViTrade and DEGIRO, three established and successful online broker brands belong to flatexDEGIRO. All brands specialise in the execution -only securities business and target traders and investors who trade autonomously. The Company’s successful growth means that an increasingly broad customer base is targeted. Trading services are available for all types of securities with access to all German and many international exchanges, as well as over -the - counter direct trading. O ur brands reflect online broker businesses without physical branches. They provide customers with a number of different trading platforms and access options for trading in securities products. These access options are continuously improved with the aim of offering an excellent customer experience and reaching additional groups of customers. Customers can trade stocks, ETFs (exchange -traded funds), ETPs (exchange-traded products) and many other products online, both at exchanges and over the counter. The Group also cooperates with numerous direct trading partners. In addition to one -off investments in securities, customers can set up savings plans with ETFs and other funds. At the end of 2024, flatexDEGIRO also began enabling its customers to trade directly in crypto assets. An average of 22 transactions per customer account in 2024 attests to the active customer base of flatexDEGIRO. The success of our online brokerage business is further driven by the Group’s transparent pricing model, which focuses on cost-effective pricing , the comprehensive and independent product portfolio, and the stable, convenient, and customer - focused platforms. The Group’s brokerage business received accolades these achievements in numerous publications throughout Europe in the past financial year. The Group’s self -developed, standardised core banking system (FTX:CBS), incorporating a fully automated infrastructure for securities orders and settlement which requires limited staff supervision, is the basis for a fixed -cos t- oriented cost structure in the online brokerage business. This proprietary infrastructure was developed completely internally and contributes to the Group’s targeted growth in terms of the number of transactions settled without requiring significant additional capital expenditure. Du e to its significan t scalability and leverage potential, each additional transaction reduces the Group’s internal costs per transaction. Generally speaking, low internal costs per transaction and further fixed cost degression with an increasing number of t ransaction s allow the Group to further expand the attractiveness of its pricing models while increasing profit margins per additiona l transaction. Credit & Treasury (C&T) As a by-product of the online brokerage business, the Group holds over EUR 4.3 billion in customer funds as of 31 December 2024. Average interest rates, especially the European Central Bank’s (ECB) deposit facility rate, increased again over the past financial year. Following a gradual increase in the ECB deposit facility in 2023 from 2.0% at the beginning of the year to 4.0% at the end of the year, this interest rate level was maintained until the end of the first half of 2024 before being lowered to 3.0% at the end of 2024 in four int erest rate steps. In combination with the customer deposits, most of which are deposited with the Deutsche Bundesbank and on which no interest is paid to customers, the higher interest rates generate significant earnings contribution for flatexDEGIRO.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 40 flatexDEGIRO AG Credit business The focus of flatexDEGIRO Bank AG’s credit strategy is on low-risk lending business collateralised by securities. The remaining loan portfolio was gradually reduced through maturity or redemption. This also includes the factorin g portfolio. The supplementa ry property financing offered as a treasury substitute was also strategically discontinued at year-end 2022. Treasury The treasury department pursues a broad diversification of money and capital investments, including overnight and fixed-term deposits, bank and government bonds, cash loans and mortgage bonds as well as UCITS (Undertakings for Collective Investment in Tran sferable Securities) and special funds (Alternative Investment Funds, “AIFs”). Under the internal investment guideline, the management of interest-bearing own investments is based on the respective current business and medium -term planning as well as a regular review of target achievement during the year. The protection of invested capital is the primary focus. IT services at flatexDEGIRO AG and Xervices GmbH The flatexDEGIRO FTX:CBS core banking system is a scalable IT platform for the technological mapping of business processes for full banking operations. It brings together technical support for all bank - and brokerage- specific business processes in one system.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 41 flatexDEGIRO AG The sales platform forms the basis for customer contact points with components from the online account and custody opening (client check -in, CCI), Customer Relationsh ip Management (CRM), online banking front -end, trading front - end, support and call centre as well as (marketing) campaign management areas. Technical support is provided by means of the Banking Suite's modular software solutions, such as ENTAX or CRM tools. The production platform encompasses all production processes for account and custody management, cash deposit, securities settlement, payments, money market and foreign exchange transactions and loans. Software solutions such as WebFiliale and WinFiliale, as well as solutions such as corporate payments, tools for professional trading and market data and low latency services are integrated into this platform. The control platform (regulatory and steering platform) covers business processes in accounting, regulatory reporting, management reporting and risk management. On the software side, support is provided, among other things, by connecting a Cloud ERP Genera l Ledger (SAP Business ByDesign©) based on HANA technology. It also includes business intelligence and management reporting tools. The support platform assists the other three platforms with archiving, release management, fulfilment and authentication processes. In addition to FTX:CBS, the Limit Order System (abbreviation: L.O.X.) from the group subsidiary Xervices GmbH is able to ensure bilateral technical order forwarding and to monitor the limit orders of approx. 23 European brokers against the price feed of ei ght connected issuers with approx. 2,000,000 products. 1.7 Target markets and clients The primary focus of flatexDEGIRO is online brokerage. The DEGIRO, flatex and ViTrade brands represent the Group in a total of 16 European countries, meaning it covers all important European markets. flatexDEGIRO only operates under the flatex (orange) and ViTrade brands in Germany and Austria. DEGIRO (blue) is present as a brand in a total of 15 European countries. Germany is the only market in which flatexDEGIRO is represented by all three Group bran ds.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 42 flatexDEGIRO AG 1.8 Goals and strategies The long -term strategic focus of flatexDEGIRO is on the further development and expansion of its online brokera ge business in Europe. The Group is primarily aiming for sustainable, profit -oriented growth and rapid market penetration. Maintaining a leading technological position is also critical to success. By leveraging economies of scale and an efficient centralised business organisation, flatexDEGIRO also aims to further increase profitability and value creation for its shareholders through this growth. Organic growth in online brokerage flatexDEGIRO aims to sustainably increase its customer base by expanding its product and service offering, innovative and easy-to-understand trading applications and an increased media presence. At the same time, the number of securities transactions processed should continue to grow depending on the trading activity of the customers. This is not only to increase revenues, but also to achieve other economies of scale, resulting in signifi cantly reduced costs per transaction and improved profit margins. Market trends indicative of growth in the online brokerage market in all countries in Europe will have a fundamentally positive effect in the long term. Not least, these include the recentl y low real interest rates, a rising affinity for online activities, easier access to capital market products and systemic problems in a large number of state pension systems, where pay -as-you-go methods are coming under great pressure due to demographic change. The Group intends to achieve organic growth with its online brokerage brands in its current markets by attractin g sophisticated investors with its cost -effective pricin g model and a comprehensive and independent product range, as well as transparent, convenient and customer-focused platforms. In brokerage business, “digital proximity” to the customer is the key. Alongside transparent communication and rapid provision of relevant information, this includes a stable brokerage platform with state -of-the-art functions, and innovative products and p rocesses. The added value for the customer arises from the interaction of the product, platform , and price. In addition to an attractive price -performan ce ratio with an extensive, innovative and constantly growing product portfolio, continuous investment i n the platform is an important part of ensuring consistent availability even on days with a particularly high level of trading. There is a broad spectrum of customers within the online brokerage market, and they pursue different investment objectives. On the one side there are customers who use the online brokerage service to invest in savings plans that serve as long -term investme nts. On the other hand, there are customers who use the brokerage service for active trading, resulting in portfolios with a more short -term orientation. flatexDEGIRO will continue to expand the flatex and DEGIRO brands in both directions and keep focusing on professiona l traders with its ViTrade brand. Measured by the acquisition of over 420,000 new customer accounts and the expansion of the customer base to around 3.1 million at the end of the year, flatexDEGIRO made good progress in the past financial year. The same applies to the ongoing expansion of the product range with the introduction of crypto trading in Germany at the end of 2024. In addition, the Group pursues marketing strategies that have a clear focus on financial education and information. An extensive range of information and training courses for basic economic and financial knowledge, introductions to the flatexDEGIRO online platforms and product training help flatexDEGIRO customers make considered and well -founded decisions. With videos, interactive formats and subject -based events (online and offline), a wide selection of information sources is offered.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 43 flatexDEGIRO AG Acquisitions and strategic partnerships may also be used to achieve the growth targets. This could include online brokers that have higher costs per transaction, higher costs in customer acquisition or inefficient product partnerships or are unable to cope with the increasing regulatory requirements. Management believes that the use of Group -wide processes and systems, the implementation of efficient marketing strategies and expansion of the multiple prize -wi nning product and service range have the potentia l to boost profits and create lasting value. Activities to deepen vertica l integration could also be attractive. There were no specific opportunities for flatexDEGIRO to realise this strategy in the past financial year. The Group has no current plans to expand outside Europe. Deposit business and securities backed loans flatexDEGIRO aims to become the leading investment platform for building wealth in Europe and thus addresses a customer segment that is primarily interested in long -term investment and active trading. flatexDEGIRO already offers its more than 3 million customers (previous year: 2.6 million customers) in 16 European countries products and services for long -term wealth accumulation. flatexDEGIRO is deliberately not positioning itself as a savings platform. For this reason, the customers of flatexDEGIRO have a n average investment ratio significantly in excess of 90%, which means that customers normally have significantly more than 90% of their assets held in custody on flatexDEGIRO platforms invested in securities, and on average hold significantly below 10% in cash. Because the flatexDEGIRO customers base is broad and growing, these cash holdings amounted to some EUR 4.3 billion as of year -end 2024. flatexDEGIRO has a conservative investment strategy for these customer funds, and its full banking licence in com bination with the current interest rate environment allows the Group to generate substantial interest income, especially from loans fully backed by securities and sight deposits with the Deutsche Bundesbank. From a strategic perspective this interest income allows flatexDEGIRO to offset temporary dips in trading by customers – due to the higher interest rate environment, for instance. This contributes to sustainable financial stability and enables flatexDEGIRO to keep actively driving its own business forward, make substantial investments in the continued viability of its platforms and deliver profitable growth, even in a market environment that is challen ging for the whole online brokerage sector. Importance for operating segments The targets for the operating segments “flatex“ and “DEGIRO” are derived from these overarching goals for organic customer growth in the online brokerage business as well as deposit business and securities backed loans, whereby differences in the strategie s primarily take into account the different geographical focus of the segments as well as the competitive situation and market maturity found in these markets. IT services at flatexDEGIRO AG and Xervices GmbH The operating goals for flatexDEGIRO AG’s IT services are to provide high-quality, largely automated and highly scalable IT services for its own online brokerage business, includin g compliance with statutory and supervisory requirements. Their stability an d performance are also vital for efficient business operations. For regulatory and risk minimisation reasons, there is also a focus on technical harmonisation and a continued increase in the degree of automation in internal processes. In addition, the ongoing technical harmonisation of existing processes and systems from the takeover of DEGIRO is a key element for realising the synergy potentia l of the business combination and continuing to optimise the capacity utilisation of FTX:CBS. The strategic objective for Xervices GmbH is to expand the digital brokerage platforms and the proprietary L.O.X. OTC trading platform. The IT systems of flatexDEGIRO are already characterised by high system availability and were able to reliably process more than 63 million transactions in the past financial year (+10 % compared to the previous year).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 44 flatexDEGIRO AG 1.9 Financial goals of the Group The Group’s key financial goals include generating sustainable profits. Consolidated revenue and consolidated net profit are defined as financial performance indicators. In this context, the financial goals also include maintaining a solid equity base. In addition, the Company's financial goals also include ensuring a comfortable level of liquidity at all times. This is intended to ensure a positive development in the key performance indicators (see section 1.11). Profit-oriented and sustainable corporate development that positively impacts the Company’s value is therefore at the heart of all our financial targets. 1.10 Strategies to achieve our non- financial goals The management of flatexDEGIRO AG places its strategic focus primarily on the existing business models and an up -to- date human resources policy. flatexDEGIRO AG has spent many years promoting the commitment, satisfaction, motivation and loyalty of its employees, amongst other things, through the following measures. — Various communication networks for managers — Dual study programme offered in collaboration with the Frankfurt School of Finance and Management (FSOF) — Participation in the Company’s success through various profit-sharing programmes — Flexible working arrangements — Full coverage of external childcare costs for very young children — Sports and health programmes — Subsidisation of the Deutschlandticket local public transport pass — Possibility of eMobility leasing — Employee discounts for the purchase of IT equipment — Non-cash benefits card for discounted non -cash purchases — Introduction of corporate benefits as an employee incentive — Company pension scheme with additional employer contributions — Activities to promote occupational health and safety — Company group accident insurance Keeping employees up to date about the development of the Company is a high priority for the management’s internal information policy. Furthermore, the significant expansion of the system’s e-learning capacities makes it possible to reach a larger number of learners and improve access to interactive and multimedia content. Continuous strengthening of our corporate culture and social commitment The business of flatexDEGIRO AG is built on compliance with regulatory requirements and legislation within the framework of our comprehensive approach to compliance management. This principle is put into practice every day in our work, by means of responsible corporate governance which is aligned with the Company’s values, operational guidelines and effective management systems. In its strategic decisions flatexDEGIRO AG considers its social responsibility, as well as the interests of over 1,250 employees, its investors, clients, suppliers and other stakeholders. flatexDEGIRO does not own any buildings but is a tenant at all its locations. Direct CO 2 emissions arise exclusively from the use of the Company's own vehicle fleet and are to be recognised as Scope 1 emissions. Another part of our emissions is generated indirectly through the purchase of electricity and heat. Natural gas and district heating are used at various office locations to cover heating requirements, which causes further emissions (Scope 2 emissions). flatexDEGIRO also endeavours to minimise emissions that arise in upstream or downstream parts of the value chain (Scope 3 emissions).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 45 flatexDEGIRO AG flatexDEGIRO has set a goal of reducing Scope 1 and 2 emissions at all locations by at least 70% by 2030 (base year 2020). Scope 3 emissions are on a situational basis (e.g. commuting), and are to be reduced by up to 30% by 2030 (base year 2020). The current separate consolidated non -financial report in accordance with Section 315b HGB is available to download from the Company’s website under Investor Relations > Reports & Financial Calenda r (www.flatexdegiro.com/en/investor-relations/reports - financial-calendar). The Group engages in continuous dialogue with all relevant stakeholders. These include our customers, employees, business partners, shareholders, industry associations and public authorities, as well as policymakers and the scientific community. We utilise the exchange with our stakeholders to gain interesting insights, understand other positions, identify trends and develop partnerships. flatexDEGIRO also uses this open dialogue to engage in discussions about current challenges and highlight the fundamental conditions of importance for flatexDEGIRO. The Group considers responsible, economical business to be an essential foundation for successful corporate governance and has also set out this principle in its “Code of Conduct and Ethical Principles”. Using energy and resources as efficiently and carefu lly as possible is important for the commercia l success of flatexDEGIRO. This area, alongside reducing business travel, is where we have the most significant leverage to reduce our environmental footprint. flatexDEGIRO takes its own environmental responsib ility very seriously and is constantly striving to reduce energy consumption at all its sites. This coincides with our objective of reducing emissions, given that these are largely determined by our consumption of electricity and heat. The Group intends to continue its responsible corporate governance in the future and to keep meeting its social obligations and incorporating these into its value management. This includes setting minimum standards for the energy efficiency of our technolo gies and also reducin g environmental risks through the continuous optimisation of business processes. 1.11 A value-based management system flatexDEGIRO has a Group -wide management system. To achieve the overall corporate goals, the management agreed on key target figures and performance indicators (KPIs = Key Performance Indicators) for the year 2024, which will contribute to increasing company value over the long term . The financial and non- financial performance indicators ensure the comparability of commercial framework data in international markets.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 46 flatexDEGIRO AG The financial performance indicators are consolidated at Group level and are fed into a rolling plan for future business development alongside the financial results. Monthly reporting and more detailed analyses are central instruments for Group controlling . By constantly monitoring the performance indicators, we aim to identify changes in business performance at an early stage and enable countermeasures to be initiated in good time. The Supervisory Board, the Management Board and the management team of flat exDEGIRO AG are kept constantly updated about the development of the performance indicators via monthly risk reporting and a general reporting framework. Corporate planning is conducted by analysing past performance and forecasting on the basis of the information obtained to date. This business planning process is carried out at least once a year with a top -down approach, on the basis of specifications set out by the flatexDEGIRO AG management, as well as with a bottom -up approach to validate the determined figures and to adjust these key operational issues affecting the KPIs. The individual specialist departments make a significant contribution to this, so findings can be brought together at Group level and business planning can be finalised. Revenue and the consolidated net profit are used as financial performance indicators. Employee satisfaction and the performance of our ESG ratings are used as key non -financial performance indicators. For additional information on non - financial performance indicators, please refer to our separate non-financial report. The non -financial perf orman ce indicators are not used for management purposes. 1.12 Research and development activities In order to supply innovative products and services, flatexDEGIRO AG needs to be especially active in the following areas. The technology -driven services provided by flatexDEGIRO AG enable our customers and partners to benefit from the performance of FTX:CBS. Customer - oriented, innovative research and development activities are a key operational task for flatexDEGIRO AG, as th ey guarantee the Company’s success and create the basis for the Group’s future growth. The “future-proof” concept summarises the principles of our research and development work as well as the focus of flatexDEGIRO AG”s IT activities: high system availability, short development times, scalability and risk -oriented IT services.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 47 flatexDEGIRO AG The contribution made by the staff of the R&D departments is an essential pillar of the commercial success of flatexDEGIRO AG. The qualifications, experience and dedication of employees are key factors for the success of our research and development activities. flatexDEGIRO strives to develop products and solutions that meet the needs of customers and to drive the market forward with innovations. The development activities of flatexDEGIRO AG are conducted in various development units, employing a modular approach. This modularisation enables efficien t implementation and further development of our technology services, making it possible for the correspo nding customer or market requirements to be integrated with little or no adaptation required to the platform approach. On the basis of this scalable and modular platform approach, flatexDEGIRO AG can offer its customers innovative and flexibly customisable solutions along the entire financial services value chain. The use of cutting -edge technologies and innovative softwar e solutions – predominantly proprietary and supplemented with third -party services where useful – ensures the efficient deployment of resources in a highly dynamic market environment. In the past financial year, the focus of activities was on optimising the implementation of regulatory requirements, increasing the automation in various areas of the platform, further expansion of the technical infrastructure, ongoing optimisation of exis ting applications, further development of front-end solutions and the technical integration of DEGIRO into the Group. Additionally, the Group succeeded in enabling customers in Germany to trade cryptos at the end of the year. Personnel expenses amounting to 0.10% (excluding personnel expenses for long -term incentive schemes) were invested in the area of R&D (previous year: 0.17%). These are not supplied by or for third parties. There has also been no change in the methods employed to evaluate R&D activities, or in the delimitation of their scope. The main drivers of development services were the continuous development of the core banking system (FTX:CBS) and front -end solutions, the provision of cryptocurrency trading in Germany and the technical integration of DEGIRO. Development spending alone in the past financial year totalled kEUR 26,048 (previous year: kEUR 27,988). The R&D cost ratio (in relation to total revenue) was 5.4% (previous year: 7.2%). The share of capitalis ed development expenses corresponds to the total research and development e xpenses. Amortisation of finished internally generated intangible assets came to kEUR 10,913 (previous year: kEUR 7,109). The Management Board also expects an R&D cost ratio in the mid- single-digit percentage range in relation to revenues for the following years.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 48 flatexDEGIRO AG 2 Economic report 2.1 Macro-economic and sector- specific parameters Global economy The global economic situation again did not improve noticeably in the 2024 reporting year compared to the previous year. On the contrary, global economic development was again faced with several challenges in 2024 and was also impacted by numerous crises. The effects of the COVID - 19 pandemic and the resulting disruption to production and logistics, which dominated previous years, no longer play a major role. On the contrary, global economic development was faced with several challenges in 2024 and was impacted by numerous crises. In geopolitical terms, the Russia -Ukraine war contributed to further ongoing tensions. Even two years later, there is no end in sight and with the re -election of Donald Trump as President of the United States of America , support to Ukra ine is expected to shrink further in 2025. Despite the fact that the impact on the energy supply of EU countries has been increasingly contained, energy prices for households and industries remain high, particularly in Germany. 1 Another conflict with a global impact was triggered on 7 October 2023 with the Hamas terrorist attack in Israel. This attack recently escalated the situation between Iran and Israel. The effects were also already clearly visible in international shipping. Since the terrorist attacks by the Houthi rebels in the Red Sea, container ships have had to take major detours. This had consequences on freight rates, which had multiplied in the summer of 2024. Following the coronavirus pandemic, global economic develop ment is therefore once again facing logistical challenges. Presiden t - elect Donald Trump will also play an important role here. His import tariff policy harbours considerable downside risks for the global economy and world trade. These protectionist measures continue to pose the risk of a bloc formation in the global economy, as possible countermeasures by trading ________ 1 IWH (publ.): Konjunktur aktuell: 4/2024. 12 th year . 12 December 2024. 2 Institut der deutschen Wirtschaft (publ.): IW -K onjunkturprognose Winter 2024: Es wird nicht besser (IW Economic Forecast Winter 2024: It’s not getting any better). No. 45 (2024). 3 ifo Institut (publ.): ifo Konjunkturprognose Winter 2024: German economy at a crossroads. Special Edition December 2024. 4 IfW Kiel (publ.): Kieler K onjunkturberichte: Weltwirtschaft im Winter 2024. No. 119 (2024/Q4). 12 December 2024. partners are still difficult to predict. Any further expansion of restrictions would place a heavy burden on international trade and thus jeopardise the recovery of global industria l production.2 Despite the geopolitical uncertainties, the global econom y experienced a slight upturn since autumn 2024. Global industrial production has been growing again since 2023, which has also boosted global trade in goods. However, this effect is heavily dependen t on the region. It is particularly pronounced in Asia and Latin America. By contrast, trading in Western Europe was exceptionally weak. Asian countries, with the exception of China, also stood out on the import side. Strong demand stimuli also came from t he USA and, most recently, from Japan and Eastern Europe. 3 Monetary policy in the advanced economies continues to loosen. The interest rate cuts initiated in the major economies in summer 2024 were continued in the autumn. Following the surprisingly large first move in September, the US Federa l Reserve (Fed) most recently reduced the key interest rate range to a range between 4.5% and 4.75% in November. Further interest rate cuts are forecast by the leading economic institutes. Meanwhile, the European Central Bank (ECB) has cut its key interest rate even further. While the interest rate for the deposit facility was still at 4% at the beginning of the reporting year, it was lowered in severa l steps by 25 basis points e ach time until it reached 3.0% in December 2024. Additional reductions were announced for the middle of 2025. They should ultimately end at 2%, which would mean that monetary policy would have reached a neutral stance. 4 As far as future global economic developments are concerned, the economic research institutes quoted here are forecasting a rather subdued upturn. As already described, economic policy uncertainties and structural problems stand in the way of a significant increase in global economic expansion. It is predicted that consumer demand will be revitalised by falling inflation rates in the industrialised countries and the resulting rise in real incomes. Investments
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 49 flatexDEGIRO AG should also rise again as monetary policy is eased. The effects of potential tariff increases between the US and China suggest that world trade will initially increase in the first half of 2025 and level off towards the end of the year. 5 Global growth is expected to average 2.7% in 2024, risin g slightly to 3.0% in 2025. Geopolitical conflicts, economic policy uncertainties and structural problems stand in the way of a significant increase in global economic expansion . Therefore, the assumption is that the global economy will grow more slowly than the historical average in the forecast period. Only a slight year-on-year increase of +0.1% to 3.1% is therefore predicted for 2026 according to the forecasts of the following institutes. Global GDP (real) in % compared to the previous year 2023 2024 2025 2026 (Actual) (Forecast) (Forecast) (Forecast) ifo Institut +2.9 +2.6 +2.6 +2.6 lfW Kiel +3.3 +3.2 +3.1 +3.1 DIW Berlin +4.1 +3.8 +3.5 +3.7 IW Köln +2.6 +2.5 +2.5 - Average +3.2 +3.0 +3.0 +3.1 Macroeconomic framework conditions in Europe In the eurozone, economic output increased by 0.4% in the third quarter of 2024 compared to the previous quarter and by 0.9% compared to the previous year, which is the strongest increase in two years. At country level, Spain stands out, because it clearly outperformed the other eurozone countries with a 2.9 % increase in gross domestic product. Overall, private consumer spending in the eurozone has picked up again as a result of real wage growth. The ifo Institute forecasts that economic output in the euroz one will increase by 1.2% in both 2025 and 2026. It should be noted that there are major differences between the individual member states. 6 The forecasts of the European Central Bank are equally varied. However, according to ECB surveys, this momentum will slow down after an increase in economic growth, as the manufacturing and service sectors are in decline. Private consumer spending will increasingly weaken as confidence remains low. As a result, there will also be less demand for residential property. In the eurozone in particular, companies ________ 5 ifo Institut (publ.): ifo Konjunkturprognose Winter 2024: German economy at a crossroads. Special Edition December 2024. 6 ifo Institut (publ.): ifo K onjunkturprognose Winter 2024: German economy at a crossroads. Special Edition December 2024. 7 European Central Bank (publ.): Economic Report. Edition 8 (2024). are still holding back on investments as demand remains rather subdued and uncertainty prevails. Fiscal policy is not expected to stimulate the economy in the forecast period, as many of the support measures adopted in previous years have expired and, in s ome cases, economic policy is once again focussing more on the high level of national debt. In addition, exports are showing signs of weakness as a result of declining competitiveness. By contrast, the employment rate remains stable. It rose by 0.2% in the third quarter of 2024. The unemployment rate remained at a historic low of 6.3% in October 2024. Italy and Spain, in particular, account for the majority of European job creation. Overall, this totalled around 1 million additional jobs. Nevertheless, it s hould be noted that fewer jobs are being created across Europe overall. 7 It should be noted that the consumer price inflation has been declining since mid -2024. After the harmonised index of consumer prices (HICP) in the eurozone dropped to 1.7% in September, the inflation rate recently rose to 2.3% in November 2024 and is close to the monetary policy target of
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 50 flatexDEGIRO AG 2.0%. The main driver of the fluctuations continues to be the price of energy, which is hampering an ongoing reduction in inflation rates. A range of inflation rates can be observed across the entire eurozone. As of November 2024, it ranged from 0.5% in Ir eland to 5.0% in Belgium. The enormous differences between the largest economies are due to varying levels of price increases in the service sectors. 8 The estimates indicate that weaker economic development is also to be expected for the eurozone in the near future. Even though the monetary policy is expected to continue easing, which should facilitate financing, there are still economic policy uncertainties, particularly with regard to foreign trade and the reduction of fiscal policy stimuli. 9 Economic development in Germany The German economy is still in a phase of stagnation and has only grown by 0.1% in real terms over the past five years. Furthermore, as in the previous year, German economic development was surpassed by other economies in the eurozone. This is primarily attributable to the decline in production and value creation in the manufacturing sector. There was a significant slump in goods exports, while imports showed a slight increase. The willingness to invest was weak in Germany – and in the eurozone as a whole. This weakening also gradually reached the labour market, with the unemployment rate rising slightly in 2024 compared to the previous year. This largely affected the manufacturing and construction sectors. At the same time, real wages rose significantly throughout the eurozone, although this did not lead to an increase in consumer spending due to the high level of uncertainty regarding economic development. The German Council of Economic Experts is forecasting an inflation-adjusted decline in GDP of 0.1% for 2024. In contrast to the forecast from spring 2024, this represents a downward correction of 0.3%. Slight growth to 0.4% is expected for 2025. The inflat ion rate forecast for 2024 has also been adjusted by -0.2% to 2.2%. In 2025, it is expected to drop slightly again to 2.1%. This is based on the assumption that ________ 8 IWH (publ.): Konjunktur aktuell (Current economic situation): 4/2024. 12 th ye ar. 12 December 2024. 9 IfW Kiel (publ.): Kieler K onjunkturberichte: Weltwirtschaft im Winter 2024. No. 119 (2024/Q4). 12 December 2024. 10 Council of Experts (publ.): Annual Report 24/25: Addressing shortcomings, modernising with determination. December 2024. 11 WK O (Publisher): WK O S tatistics Austria: Economic situation and forecast. December 2024. industrial weakness will continue to intensify and that this will result in even greater uncertainty, which in turn will prevent an increase in investment activities and consumer spending. There are also fears that increased austerity measures will additionally block positive development. Fiscal policy measures in the 2024 reporting year were increasingly restrictive. Regrettably, future growth can only be ensured through adjustments to fiscal policy. Due to the premature end of the traffic light coalition in Germany (SPD, FDP, Green Party), several fiscal policy measures, such as the extension of the electricity price package for the manufacturing industry and a tax incentive to stimulate investment, are currently blocked, because no majority is in favour of these projects now. The uncertainty will continue to worsen until the new government is elected at the beginning of 2025. New measures, or at least a continuation of old measures, are not expected in the short term. Moving forward, there is a need to focus on transport infrastructure, defence and the education system. In the future, more funds must be made available for defence in order to meet NATO’s alliance goals. In the field of education, Germany has some catching up to do, particularly in early childhood education and primary schools, as it has recently performed even worse than before in international comparative studies. The task of the new federal government will be to reduce bureaucratic obstacles and prioritise fiscal policy decisions that meet the future demand. 10 Economic development in Austria The Austrian economy is currently facing a difficult situation. The industrial sector is confronted with a plethora of challenges. The weak international economy, structural change in the European automotive industry as well as high energy and labour costs are weighing on the exposed sectors and have led to a decline in exports. According to the Austrian Federal Economic Chamber (WKO), economic output will therefore decrease by 0.9% in 2024 for the second year in a row (2023: -1.0%) 11. Although the economic indicators currently seem to be bottoming out, they are not signalling an
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 51 flatexDEGIRO AG imminent recovery. Therefore, only a weak recovery in real GDP of 0.8% is expected by 2025. 12 Despite the weak economy, the labour market is proving to be very robust. Given the experience of labour shortages in recent years, companies have maintained their employment rates until 2024. As the labour force is only growing slightly due to demographic change, the unemployment only rose moderately to 5.2% 13 in the reporting year. According to estimates by the Austrian Federal Economic Chamber, unemployment will rise to 5.4% in 2025. The economic recovery is not expected to be strong enough to bring unemployment back down to 5.2% until 2026. 14 HICP inflation in Austria has more than halved from 7 .7% in 2023 to 2.9% in 2024. This is primarily attributable to the decline in energy prices, but also to low inflation for unprocessed food and non -energy industrial goods. Inflation in service prices will remain high in 2024 due to dynamic wage growth (5.7%). At the same time, Austrian households recorded a strong increase in their real net income in 2024. This is primarily attributable to the delayed adjustment of wages and pensions following the inflat ion shock in 2023. Moreover, there are high one-off payments to cushion energy price increases (e.g. climate bonus). The opposing trend in income and consumption led to a sharp rise in the savings rate to 11.4%. 15 Economic development in the Netherlands The Dutch economy recover ed in the second half of 2024 and will likely grow more strongly than expected in 2025 and 2026. Gross domestic product (GDP) is expected to grow by 0.9% 16 in 2024 and by 1.5% 17 in 2025 and 2026. Economic growth in the Netherlands will primarily be driven by domestic demand. The recovery in consumer spending observed by ________ 12 ÖNB Oesterreichische Nationalbank (publ.): OeNB Reports: Economic forecast for Austria. December 2024. 13 WK O (Publisher): WK O S tatistics Austria: Economic situation and forecast. December 2024. 14 ÖNB Oesterreichische Nationalbank (publ.): OeNB Reports: Economic forecast for Austria. December 2024. 15 ÖNB Oesterreichische Nationalbank (publ.): OeNB Reports: Economic forecast for Austria. December 2024. 16 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 17 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 18 De Nerdlansche Bank (publ.): DNB Autumn Projections. December 2024. 19 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 20 CPB Netherlands Bureau for Economic P olicy Analysis (publ.): Main economic indicators MEV 2025. September 2024. 21 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 22 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. the Dutch central bank in the second half of 2024 is an important factor in this context. It is in line with the increase in household income. Consumption growth will continue in 2025 and 2026. Furthermore, Dutch exports will likely make a greater contribu tion to economic growth due to the recovery in world trade. 18 Nevertheless, geopolitical tensions, such as the developments in the Middle East and Russia’s war in Ukraine, continue to have a negative impact on the economic outlook . Dependence on other countries in terms of trade and investment makes the Dutch economy vulnerable to globa l shocks. The negative impact of geopolitical uncertainty on confidence could also affect domestic spending. Moreover, there is a risk of a trade conflict with higher import tariffs in international trade, which could put additional pre ssure on the Dutch economy. Since the election of Donald Trump as US President in November 2024, uncertainty regarding this threat has increased significantly. According to the Dutch central bank, new trade restrictions could hit the Dutch economy just as hard as the pandemic and the energy crisis did before that. A trade war therefore poses the risk of a downward revision of growth forecasts, as shown in the alternative scenario of this autumn forecast. HICP inflation is expected to be 3.2% 19 in the reporting year. Inflation has dropped drastically since its peak in 2022 (11.6%20) but is expected to reach 3.2% 21 in 2025 and 2.8% 22 in 2026. The high inflation is predominantly attributable to domestic factors. The increase in indirect taxes, such as VAT and tobacco tax, will lead to higher prices for services, food and energy. Inflation for services remains high. The ongoing economic tension is also contributing to keeping inflation at a high level. The continuing labour shortage is also putting pressure on wages and prices from the demand side of the
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 52 flatexDEGIRO AG economy.23 Although the number of employed people continues to rise, growth is slowing. According to the Dutch central bank, this development is attributable to stagnating GDP growth in 2023, which usually affects the labour market with a certain delay. The unemploy ment rate is expected to be 3.7%24 in the reporting year, rising to 3.9%25 in 2025 to 4.0%26 in 2026. At the same time, the labour market will continue to be affected by high demand, meaning that workers will remain in short supply. According to the Dutch Central Bank, there were still more vacancies than job seekers in the third quarter of 2024, and companies consider staff shortage to be the biggest obstacle to production. The Netherlands is not alone in this dilemma. Other European countries also have a tight labour market, but the situation is even tighter in the Netherlands. 27 Wages have risen faster and more strongly in the Netherlands than in other countries. This was mainly done to compensate for the increase in inflation since 2021. The collectively agreed annual wage increase peaked at 7% in mid -2024. In the other eurozone countries, wage growth in the summer was around 3 percentage points lower than in the Netherlands. Besides the tight the labour market, institutional differences also play a role. The average wage increase for new contracts, a leading indicator, was around 4.25% this autumn. According to the Dutch central bank, this indicates that wage growth has peaked. 28 The Dutch Bureau for Economics also assumes a projected wage increase of 6.6% in the reporting year 2024 and a lower increase of 4.3% in 2025.29 Overview of important economic parameters by market Looking at the three customer groups (Core, Growth, Research), the developments in the past year are reflected in the real gross domestic product, which diverged significantly in some cases. In the core markets, the relative change in ________ 23 De Nerdlansche Bank (publ.): DNB Autumn Projections. December 2024. 24 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 25 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 26 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 27 De Nerdlansche Bank (publ.): DNB Autumn Projections. December 2024. 28 De Nerdlansche Bank (publ.): DNB Autumn Projections. December 2024. 29 CPB Netherlands Bureau for Economic P olicy Analysis (publ.): Main economic indicators MEV 2025. September 2024. 30 Council of Experts (publ.): Annual Report 24/25: Addressing shortcomings, modernising with determination. December 2024. 31 ÖNB Oesterreichische Nationalbank (publ.): OeNB Reports: Economic forecast for Austria. December 2024. 2024 is still weak. In the case of Germany and Austria it is even negative, but moderate growth of 0.4% 30 can be expected in Germany and 0.8% in Austria for 2025. At 0.9%, the Netherlands recorded the strongest economic growth among the core markets in 2024 and is expected to achieve further growth of 1.5% in 2025 and 2026. 31 With the exception of Ireland and Italy, the relative change in the growth markets will be significantly more positive in 2024 compared to the core markets, although the trend is expected to weaken in subsequent years. Developments in the research markets was positive in all countries in 2024, apart from Finland. In the years that followed, however, Poland, Greece and the Czech Republic particularly stood out with consistently high annual growth rates of over 2%. Looking at the harmonised consumer price index, the picture is similar for all the countries considered. The ECB’s monetary policy has had an impact in the last two years and has already significantly dampened underlying inflation. An inflation rate of 1.9% is projected for the eurozone in 2026, which means that the ECB’s medium-term goal of limiting inflation to 2% can be achieved in the near future. At the same time, it is expected that as inflation recedes, the fiscal measures will continue to be success ively cut back and key interest rates reduced. The forecast developments in gross domestic product and the consumer price index point to a more positive environment for the online brokerage market in the years ahead. Since Company profitability is very likely to improve as the economy grows (higher gross domestic product) and purchasing power remains stable (declining/stable consumer price index), securities are expected to become significantly more attractive as a form of investment again. Thereafter, it is
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 53 flatexDEGIRO AG anticipated that crisis-proof assets, such as current accounts, fixed-term deposits and gold, are shifted into securities, which could also lead to an increase in trading activity. 32 Framework conditions in the segments “flatex” and “DEGIRO” Since the operating segments “flatex” and “DEGIRO” are homogeneous, the reporting on their framework conditions is on a consolidated basis. Contrary to the global economic trend, the financial markets developed positively in 2024. The DAX climbed above the 20,000 point mark at the end of the year in December 2024, reaching another all -time high. The DAX started the year at 16,742 points and, a part from two dips in April and August, rose steadily. On the last day of trading in 2024 the DAX stood at 19,895 points, which represents an annual performance of +18.8% (+3,153 points). Deutsche Bank AG forecast in November 2024 that the DAX would close the year 2025 at 20,500 points33, which implies that the stock market would continue to hold its own. This is based on the assumption of steady economic performance and expected interest rate cuts by the central banks. The SDAX and MDAX performed contrary to the DAX. With an annual perfo rman ce of -1.8% ( -249 points), the SDAX stood at 13,711 points at the end of December 2024. A strong rise to over 15,000 points in mid -May was followed by a significant decline in the second half of the year. The MDAX also underwent a similar development. It started in 2024 at 27 ,126 points and closed the year at 25,639 points, which corresponds to an overall performance in 2024 of -5.5% or - 1,487 points. The key indices in Europe, Asia and the USA reported a positive performance. The MSCI World, which trac ks the performan ce of more than 1,500 companies from 23 industrialised economies, was below the DAX at +17.0% (+539 points). The US dollar has appreciated in light of the increased interest rate differential between the United States and Europe. Since September 2024, expectations on the financial markets regarding key interest rates have changed significantly, with the expected policy changes by the new US administration probably contributing to this development. ________ 32 ECB: Eurosystem staff macroeconomic projections for the euro area countries. December 2024. 33 Deutsche Bank AG (publ.): Prospects for 2025. 10 December 2023. 34 IfW Kiel (publ.): Kieler K onjunkturberichte: Weltwirtschaft im Winter 2024. No. 119 (2024/Q4). 12 December 2024. 35 ECB (publ.): Press release: Monetary P olicy Decisions. 12 December 2024. 36 Deutsche Bundesbank: Capital market statistics. 17 January 2025. While lower interest rate cuts are now expected in the USA over the next two years to mitigate the increased inflation risks, the financial markets are assuming faster interest rate cuts and a lower final level for the eurozone against the backdrop of the weak economy. At the same time, the euro depreciated from USD 1.12 at the beginning of October 2024 to USD 1.04 per euro at the end of December 2024. The oil price is currently under sustained pressure due to a restrained increase in demand. The oil price has been on a downward trend since spring 2024. Geopolitical tensions have repeatedly led to temporary price hikes, as security of supply was considered secure. However, at USD 73.89, the price of a barrel of Brent crude at the end of December 2024 was almost USD 18 lower than in April. This is attributable to a significant slowdown in the increase in demand for oil. With the election of Donald Trump as US President, demand will rise again significantly due to the expected increase in US production. 34 While the ECB Governing Council raised the key interest rates in 2023 in six interest rate steps to 4.5% by the end of 2023, it was followed by a turnaround in interest rates in 2024. With four interest rate steps (12 June: -0.25%; 18 September: -0.6%; 23 October: -0.25%; 18 December: -0.25%), the key interest rate reached 3.15% at the end of 2024. Furthermore, the Governing Council is determined to ensure sustainable inflation stabilisation from a medium -term target of 2%. Additional steps regarding an ap propriate monetary policy course will depend on the data situation and will be determined from meeting to meeting. Furthermore, it was announced that the Governing Council of the ECB will no longer fully reinvest the redemption amounts of securities purchased under the Pandemic Emergency Purchase Program (PEPP) upon maturity. The PEPP portfolio decreased by EUR 7.5 billion per month on average over the second half of the year and reinvestments under the PEPP were discontinued at the end of 2024. 35 In 2024, the yield on German government bonds with a ten - year term averaged around 2.341%. The German government bond was quoted at 2.39% at the end of the year. 36
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 54 flatexDEGIRO AG 2.2 Business performance and position of the Group The Group’s business performance in 2024 was characterised by a series of external events, which impacted the trading activity of retail investors and the Group’s interest income. Internally, there was a strong focus on working through the remaining findings from the special BaFin audit and preparing and implementing new product launches, such as trading in crypto assets. Work was also carried out on the flatexDEGIRO technology platform in financial year 2024 in the course of further developing our IT systems. This entailed further groundwork for the future joint architecture of flatex and DEGIRO relating to the core bankin g system FTX:CBS. In 2024, Xervices GmbH offered its connected issuers and brokers a high -performance service based on its scalable solution using the L.O.X. platform. Trading activity Trading activity by private investors stabilised in 2024 compared to the previous year and showed initial signs of recovery, especially towards the end of the year. The elections in the United States of America, for example, also had a positive impact here, with a noticeable increase in market activity. Nevertheless, the continuing negative factors, such as the ongoing war in Ukraine, the military conflict in the Middle East and other geopolitical tensions, contributed to investor uncertainty. Due to declining inflation rates overall, the central banks have started to reduce their key interest rates again. For example, the ECB has lowered the 2024 deposit facility, which is particularly relevant for flatexDEGIRO, by 100 basis points from 4.00% t o 3.00%. A lower interest rate environment is generally considered to be positive for the performance of the stock markets. Over the year as a whole, trading activity by flatexDEGIRO customers remained roughly at previous year’s level with an average of 22 transactions. Transaction settlement In this market environment, flatexDEGIRO succeeded in increasing the number of completed transactions by 10.9% to 63.0 million, compared with 56.9 million transactions in 2023. 44.8 million of these transactions were processed in the flatexDEGIRO core markets (2023: 40.0 million).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 55 flatexDEGIRO AG Accelerated customer growth flatexDEGIRO continued its customer growth in 2024 and gained over 421,000 new customer accounts (gross). Compared to the previous year, in which around 340,000 new customer accounts (gross) were acquired, this corresponds to an increase of 23. 7%. As in previous years, flatexDEGIRO’s growth was higher than that of comparable European companies – insofar as they have published officia l figures. Overall, the number of customer accounts rose to 3.1 million at the end of the year (previous year: 2.7 million). In Germany flatexDEGIRO passed the mark of 500,000 customer accounts in the past financial year. Expansion of trading-related revenues per transaction In the interest of all stakeholders, flatexDEGIRO continuously strives to achieve an optimal balance between sustainable, profitable growth and the most attractive customer offering possible. After the last price adjustments in the Brokera ge segment in May 2023, no further adjustments were made in 2024. Average gross commission income per transaction was positively influenced by an improved product mix, including an increase in the proportion of international securities traded and the associated exchange ra te fees. Accordingly, the average gross commission income per transaction rose to EUR 4.47 in 2024, an increase of 8.0% compared to 2023 (EUR 4.14). Effects of a positive interest rate environment The ECB raised its deposit facility rate by 200 basis points in several stages in 2023, from 2.00% at the beginning of the year to 4.00% by the end of the year. Although the deposit facility was gradually reduced again over the course of 2024 to 3.00% at the end of the year, the annual average was still higher than previous year’s figure. Due to the majority of customer deposits held directly with the Deutsche Bundesbank, flatexDEGIRO benefits from the positive interest rate environment in the form of risin g interest income. Moreover, in connection with the drastic rise in interest rates in 2023, flatexDEGIRO adjusted the interest rates for fully collateralised margin loans to the general market environment at the beginning of financial year 2024. In conjunction with another increase in the volume of customer funds held in custody and higher utilisation of fully collateralised margin loans by flatexDEGIRO customers, these interest rate hikes had a positive impact on the generated interest income. Successful remediation of serious findings of the special audit in accordance with Section 44 KWG completed In 2022, the German Federal Financial Supervisory Authority (BaFin) conducted a special audit at flatexDEGIRO Bank AG in accordance with Section 44 of the German Banking Act (KWG). Measures were taken by flatexDEGIRO without delay to eliminate the identifi ed deficiencies, for example, in the form of qualitative and quantitative reinforcements to relevan t functions, as well as through the creation of dedicated programme structures to adopt and implement all the necessary changes in full, applying a risk -based approach. A number of significant deficiencies were already remedied in 2023, particularly those relating to the applicability of credit risk mitigation techniques (CRMT) in connection with margin loans at DEGIRO. flatexDEGIRO was able to do this within just ten months of receiving the audit report. Consequently, in agreement with the special commissioner appointed by BaFin for this purpose, the supervisory authority confirmed that these CRMT could be applied again at the end of September 2023. In 2024, t he focus was on the final remediation of all serious deficiencies. After successful remediation of the serious deficiencies by flatexDEGIRO and the positive review by the special representative, his mandate ended on 30 September 2024. The Management Board is striving to remedy all remaining findings in a timely manner. Personnel measures taken without delay Even before the special audit in 2022 had finished, flatexDEGIRO started to take a number of sustainable personnel decisions, partly involving new recruitment, which were continued methodically and largely finalised in 2023. These primarily relate to functional areas in direct connection with Internal Audit, Internal Control Systems, Regulatory Reporting and Anti -Money-Laundering, as well as corresponding activities in the risk management and compliance system.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 56 flatexDEGIRO AG Dr Matthias Heinrich was appointed as the new Chief Risk Officer of flatexDEGIRO Bank AG in October 2022 and new management structures were established for qualitative improvements in several functional areas. Internal Control Systems was reorganised and e stablished as an autonomous department with additional staff, reporting directly to the CEO. Overall, the workforce in the functional areas described above was more than doubled in 2023, compared with the number of employees when the special audit began in early 2022. In 2024, only a small number of selective personnel additions were made. Comprehensive project structure to ensure efficient remediation and presence in the Company culture In addition to this new recruitment, flatexDEGIRO launched a project in late 2022 to work through the audit findings, which was led by Steffen Jentsch, Chief Process Officer and Member of the Management Board of flatexDEGIRO Bank AG. The project is divided into eight sub -projects and is supported by some 50 internal and external staff. The associated steering committee is made up of Steffen Jentsch, as well as other Management Board members of flatexDEGIRO Bank AG. The Supervisory Board is kept fully informed of the status of the remedial measures and discusses them at its meetings. Furthermore, the Audit Committee was transformed into a Joint Risk and Audit Committee in August 2022. The goal of the project was to process the serious findings in a structured manner before the end of 2024, which has now been achieved, and to subsequently process all remaining findings and increase the maturity level of the entire organisation. Particularly in the field of written rules and general organisational structures, flatexDEGIRO Bank is making improvements and changes to specific entities to permanently strengthen Internal Control Systems and especially supervisory processes. Above and beyond the resolution of identified deficiencies, it is the declared aim of the Management Board to embed the findings and underlying approaches in a maturity level model for the continuous development of the entire organisation, thus providing a sustainable framework for the Group’s desired growth. Three-stage remediation in line with internal priorities The entire remediation project was divided into three phases in line with the internal priorities. — The principal focus was on regaining approval to apply credit risk mitigation techniques for margin loans at DEGIRO, because this was the only audit outcome that had a direct impact on risk-weighted assets, and thus on the regulatory capital surplus of flatexDEGIRO, and which indirectly slowed the expansion of the customer offering in this area. Within just ten months, flatexDEGIRO was able to complete the entire design and implementatio n phase, including the corresponding quality assurance, to carry out the subsequent effectiveness test, and to complete the additional testing by the special commissioner appointed by BaFin. In agreement with the special commissioner, BaFin confirmed in la te September 2023 that these credit risk mitigation techniques could be used again. Such a rapid adaptation of the measures by BaFin was possible thanks to the appointment of a special commissioner, which alleviated the need for a follow-up test, which wou ld usually only take place much later. — Once the credit risk mitigation techniques could be applied again, the focus shifted to working through the most severe remaining findings. The mandate of the special auditor ended in September 2024 upon confirmation of the successful resolution of these fi ndings by BaFin. — Finally, the intention is to wrap up open topics that are not of material significance and transfer them to the functional units for continuous improvement. Marginal business areas such as football financing, factoring and property financing have since bee n discontinued, with minor exposures now being wound up. These activities were only carried out on a limited basis in the context of negative interest rates but have no strategic relevance for flatexDEGIRO. The audit findings that related to these business areas have therefore partly been resolved or no longer apply.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 57 flatexDEGIRO AG Presentation of the remediation and quality assurance process The findings were remedied by creating resulting objects, which had to go through a three -stage quality assurance process, passing what are known as Quality Gates at each stage. — 1st Quality Gate – internal functional control instances (enterprise architecture management) — 2nd Quality Gate – two external statutory auditing firms — 3rd Quality Gate – Internal Audit, with the assistance of another external statutory auditing firm The third Quality Gate, i.e. the Internal Audit, was also monitored from a critical perspective by the Steering Committee. In the design phase, a solution design was developed for each resulting object, which was approved and checked by all three Quality Gates before being discussed individually by the Steering Committee and approved if applicable. Only then did implementation of the mitigating measures begin with the involvement of the functional departments and the Quality Gates. Implemented measures were subsequently put through implementation testing and effectiveness testing by the Internal Audit.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 58 flatexDEGIRO AG A regular dialogue took place with the special commission er in order to ensure the status and quality of the remediation work. In addition, the status of remediation work was regularly discussed in the Management Board meetings of flatexDEGIRO Bank AG. Periodic reporting ensured that the Supervisory Board was informed in detail about the status of remediation measures, which were discussed at its meetings. Additionally, the status was regularly presented by the responsible Management Board member of flatexDEGIRO Bank AG in the Group Audit Committee to ensure that the Supervisory Board receives the necessary depth of information. The same applies to the auditors of the consolidated financial statements. Furthermore, the Supervisory Board held meetings with In ternal Audit and the Quality Gates independently of the Management Board. Reporting to BaFin and Deutsche Bundesbank takes place quarterly. Dividend proposal After flatexDEGIRO AG paid out a dividend of 4 cents per share for the first time in 2024 and launched a share buyback programme with a maximum volume of EUR 50 million, the Management Board and Supervisory Board intend to propose to the 2025 Annual General Meeting that a dividend of 4 cents per share will be paid again. The Annual General Meeting will vote on the respective annual dividend. For a share buyback the approval of BaFin is additionally required. 2.3 Segment reporting Segments of the Group flatexDEGIRO AG is required by IFRS 8 to report on its operating segments. The type of segmentation is based on the management approach. Segments are components of a company for which separate financial information is available. This information is regularly analysed by the Management Board and by management as part of the allocation of resources and the assessment of performance. The business structure of flatexDEGIRO AG is divided into the “flatex” and “DEGIRO” segments. IT services at flatexDEGIRO AG and Xervices GmbH are not assigned to individua l segments, but are allocated to these segments. The operating segment “flatex” includes the online brokera ge activities under the flatex brand and the activities under the ViTrade brand for which no separate segment was formed for reasons of materiality (the criteria for operating segments were not met). In geographic terms, the core online brokerage business under the flatex brand and the ViTrade brand relates to Germany and Austria. The operating segment “flatex” continues to include that part of the business activities from Credit & Treasury of flatexDEGIRO Bank AG that does not relate to DEGIRO. This reflects the investment business and the conservative lending business under the fl atex brand and the ViT rade brand, which as a rule takes place on a secured basis. Of secondary importance are the business activities related to “Business Process Outsourcing” and the securities settlements processing and fully automated transaction settlement services (General Clearing Member, GCM) offered as an outsourcing solution. The DEGIRO segment comprises the online brokera ge activities under the DEGIRO brand and that portion of the Credit & Treasury unit assigned to the DEGIRO brand. This reflects the investment business and the conservative lending business under the DEGIRO br and, which as a rule takes place on a secured basis.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 59 flatexDEGIRO AG In geographic terms, the operating segment “DEGIRO” currently relates to 15 countries in Europe: the Netherlands, Spain, Portugal, France, Germany, Italy, Switzerland, Ireland, Great Britain, Denmark, Sweden, Finland, Poland, Czech Republic and Greece. Segment “flatex” Online brokerage In financial year 2024, flatex continued to expand its customer base in the core markets of Germany and Austria, gaining a total of around 111,300 new customers. This is an increase of 60.2% compared to the same period in the previous year (2023: around 69 ,500). At 14.4%, the customer base grew slightly above average (group average 2024: 13.8%) and reached around 763,200 customer accounts at the end of 2024. Customer assets under custody in the “flatex” segment rose to around EUR 40.1 billion at the end of 2024, which was around EUR 11.5 billion higher than the previous year (2023: EUR 28.5 billion). This also includes securities under custody from non-brokerage activities in the “Employee Participation ” segment, as described below. The proportion of cash assets contained in customer assets under custody was around 5% at the end of December 2024 (2023: 6%). Demand for fully collateralised margin loans rose by a round 23% to mEUR 328 at the end of 2024 (December 2023: mEUR 266). In the wake of significant interest rate hikes by the Europea n Central Bank (ECB), flatex last adjusted the interest rate for margin loans to 7.5% in November 2023. Due to the declining interest rate environment in 2024, flatex lowered the interest rate for margin loans again to 6.9% as of 01 January 2025. The number of completed transactions in the “flatex” segment rose by 16.5% to 23.0 million in 2024 (2023 : 19.8 million). The average trading activity of customers in the “flatex” segment increased by around 4% from 31 transactions per year in 2023 to 32 transactions per year in 2024. Since December 2024, flatex has been offering its customers in Germany trading in 20 crypto -currencies. In its offering, flatex stands out considerably from the competition due to the price transparency it offers. flatex charges an order fee of 0.5% for trading crypto-currencies. By separating the spread and order fee, flatexDEGIRO is already pre -empting the
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 60 flatexDEGIRO AG requirements of the new EU regulation for the crypto market, MiCAR. The order fee and spread result in total costs for a buy or sell of 0.6% of the order value for liquid crypto - currencies and 0.7% for less liquid crypto -curren cies. For an order in excess of EUR 100, this amounts to 60 cents and 70 cents respectively. Furthermore, the customer does not incur any costs for custody account management and safekeeping. flatexDEGIRO also does not charge any third-party fees or surcharges for small quantities . Although the competition regularly advertises negligible order fees, no total costs are guaranteed and additiona l costs within the spread yield significantly higher transaction costs for the investor. By continuing its strategic focus on the trio of product, platform and price, flatex strives to continue its profitable growth in customer numbers in Germany and Austria and gain additional market share. Non-Brokerage Business Process Outsourcing (BPO) As part of BPO, additional services in the deposit business are provided for third-party customers. The contribution to earnings from the management of deposit platforms amounted to kEUR 3,072 in the past financial year (previous year: kEUR 1,614; +90.3%). Demand for overnight and fixed - term deposits rose sharply as a result of current interest rate policy, so the earnings contributions went up significantly. Employee Participation The cooperation with Equatex AG in the administration of share-based remuneration programmes was successfully continued in 2024. As of 31 December 2024, the Bank’s securities under custody in this business area amounted to EUR 12.1 billion, a significant increase on the previous year (EUR 9.6 billion; +26.7%). The Management Board continues to expect a stable earnings contribution for th e coming years, which could be further increased by potential new engagements. The contract was already extended in 2023 until December 2030. Segment “DEGIRO“ DEGIRO was able to further expand its customer base in all countries in financial year 2024. At 13.6%, the rate of new customer acquisition was roughly on a par with the Group as a whole (13.8%). In total, around 310,200 new customers were acquired in 2024 , an increase of 14.3% compared to the previous year (2023: around 271 ,400). The customer base in the “DEGIRO” segment thus grew from 2.0 million at the beginning of the year to 2.3 million at the end of 2024. At EUR 31.4 billion, customer assets under custody in the “DEGIRO” segment increased by 3 6.0% at the end of 2024 (December 2023: EUR 23.1 billion). The proportion of cash assets contained in this figure was around 7% at the end of December 2024 (2023: 9%). Demand for fully collateralised margin loans rose by around 35% to mEUR 841 at the end of 2024 (December 2023: mEUR 625).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 61 flatexDEGIRO AG In the wake of significant interest rate hikes by the ECB, DEGIRO last adjusted the interest rate for margin loans to a range of 5.25% to 6.9% in January 2024. Due to the declining interest rate environment in 2024, DEGIRO reduced the range for interest rates for euro -denominated securities backed loans back to 5.0% to 6.5% as of 01 January 2025; for securities backed loans denominated in other currencies, the maximum rate is 6.9%. The number of completed transactions in the “DEGIRO” segment increased by 7.9% to 40.0 million in 2024 (2023 : 3 7.1 million). The average trading activity of customers in the “DEGIRO” segment decreased by around 5% from 19 transactions per year in 2023 to 18 transactions per year in 2024. With a fee structure that in some cases is significantly below that of its sister brand flatex, DEGIRO positions itself as a particularly attractively priced provider in precisely those countries that are considered to have growth potential in the future. This has enabled DEGIRO to gain a foothold in many markets rapidly and build a broad customer base. At year-end 2024, DEGIRO had a customer base of 100,000 to 900,000 customer accounts respectively in seven countries (the Netherlands, Spain, France, Portugal, Italy, Germany and Ireland). Thanks to this broad footprint , DEGIRO contribut es significant geographic diversification to the flatexDEGIRO Group, in addition to substantial growth potential, and thus helps to reduce country-specific risks. By continuing to emphasise price within the strategic trio of product, platform and price, DEGIRO strives to continue its profitable growth in customer numbers in all key markets and gain additional market share.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 62 flatexDEGIRO AG 2.4 Comparison of the forecasts reported in the previous period and the actual business performance The comparison of the forecasts made by the Management Board in the Annual Report 2023 for the current reportin g period and the key performance indicators actually achieved is presented below. Plan/actual comparison In % Forecast 2024 Actual 2024 Revenues slight to significant increase (+5 % to 15 %) +22.9% Consolidated net profit strong increase (+25 % to 50 %) +55.2% The forecast issued in the Annual Report 2023 was exceeded in terms of revenues and consolidated net profit. 2.5 Financial performance The following table summarises the condensed consolidated profit and loss statement for the financial year and the previous year. Brief overview of Consolidated Profit and Loss Statement In kEUR 2024 2023 Revenues 480,024 390,732 thereof commission income 282,020 234,965 thereof interest income 180,470 136,327 thereof other operating income 17,534 19,440 Raw materials and consumables 69,304 69,475 Net revenue 410,720 321,257 Personnel expenses 115,900 97,419 Marketing expenses 31,609 34,011 Other administration expenses 60,733 49,474 EBITDA 202,477 140,352 Depreciation 45,785 36,004 EBIT 156,692 104,348 Financial result -1,040 -1,332 EBT 155,652 103,016 Income tax expense 44,117 31,157 Consolidated net profit 111,535 71,859 thereof majority shareholders’ share of income 111,535 71,859 thereof minority shareholders’ share of income - -
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 63 flatexDEGIRO AG The main revenues for flatexDEGIRO are commission income, interest income and other operational income, mainly from the IT services business. Revenues in 2024 amounted to kEUR 480,024 (previous year: kEUR 390,732). After deducting the cost of raw materials and consumables in the amount of kEUR 69,304 (previou s year: kEUR 69,475), net revenues totalled kEUR 410,720 (previous year: kEUR 321,257). Gross commission income for 2024 totalled kEUR 282,020 (previous year: kEUR 234,965). After deducting the commission expenses of kEUR 49,097 (previous year: kEUR 44,964) recognised in the cost of raw materials and consumables used, net commission income amounted to kEUR 232,923 (previous year: kEUR 190,001). This increase is mainly attributable to the increase in the customer base compared to the previous year and the associated increase in the number of completed transactions, as well as higher average gross commission income per transac tion. Interest income amounted to kEUR 180,470 (previous year: kEUR 136,327). After deducting the interest expenses of kEUR 9,663 (previous year: kEUR 13,892) recognised in cost of raw materials and consumables used, net interest income amounted to kEUR 170,807 (previous year: kEUR 122,435). Interest expenses include negative valuation effects on funds totalling kEUR 5,501 (previous year: kEUR 9,964). The growth in net interest income is mainly attributable to the changed interest rate conditions and the resulting positive interest rate on deposits at the Deutsche Bundesbank with a simultaneous increase in customer deposits held in custody. Moreover, the interest rates for issued securities loans were adjusted in the course of 2024. General growth in customer numb ers also contributed to the increase. Other operating income in financial year 2024 came to kEUR 17,534 (previous year: kEUR 19,440). Compared to the previous year, income from IT services dropped slightly to kEUR 9,659 (previous year: kEUR 10,252). In addition, income from exchange rate fluct uations dropped by kEUR 1,082 to kEUR 2,239 (previous year: kEUR 3,321). After deductin g ________ 37 Compred to the previous year, no adjustment was made to the key figures. expenses for IT services of kEUR 1,698 shown in other operating expenses (previous year: kEUR 1,510), net income from IT services came to kEUR 7,961 (previous year: kEUR 8,742). Personnel expenses totalled kEUR 115,900 (previous year: kEUR 97 ,419) resulting from the increase in current personnel expenses and amounted to kEUR 108,415 in 2024 (previou s year: kEUR 83,323). This development was driven by genera l salary increases, prov isions for personnel measures and for variable remuneration components as well as lower capitalisation of development costs compared to the previous year, which amounted to kEUR 26,048 in the reporting year (previous year: kEUR 27,988). The reduction in marketing expenses to kEUR 31,60 9 (previous year: kEUR 34,011) is mainly due to focussing the advertising activities in line with the market environment and the reduction in sponsorship expenses compared to the previous year. Other administrative expenses went up to kEUR 60,733 in the reporting year (previous year: kEUR 49,474). Among other things, the increase is due to the increase in legal and consulting costs to kEUR 17,606 (previous year: kEUR 10,510 ) and IT costs to kEUR 19,861 (previous year: kEUR 14,201). EBITDA of kEUR 202,477 (previous year: kEUR 140,352) was achieved in financial year 2024 . There were no specia l effects in the tax calculation in either the reporting year or the previous year. Consolidated net profit reached kEUR 111,53 5 (previous year: kEUR 71,859). There was also a positive development in key financial figures in both segments of flatexDEGIRO AG. In the “flatex” segment, revenues increased by 10.7% to kEUR 2 70 , 6 33 (previous year: kEUR 244,572) and EBITDA by 13.2% to kEUR 85,921 (previous year: kEUR 75,887). In the “DEGIRO” segment, revenues increased by 28.0% to kEUR 286,050 (previous year: kEUR 223,501) and EBITDA by 80.8% to kEUR 116,556 (previous year: kEUR 64,465 ). 37
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 64 flatexDEGIRO AG 2.6 Financial position The highest priorities in the financial management of the Group are to always secure a comfortable level of liquidity and to maintain operational control of the inflow and outflow of funds. The effects of foreign exchange rates have only impacted the financial position to an insignificant extent. Capital The equity components and their developments are shown below. Brief overview of equity In kEUR 31/12/2024 31/12/2023 Change in kEUR Change in % Subscribed capital 110,133 109,993 140 0.1 Additional paid -in-capital 233,394 230,972 2,422 1.0 Retained earnings 439,817 332,659 107,158 32.2 thereof Legal reserve and other reserves 333,179 261,659 71,520 27.3 thereof Consolidated net profit 111,535 71,859 39,676 55.2 thereof Other comprehensive income -496 -859 363 -42.3 thereof Dividend distribution -4,401 - -4,401 - T reasury shares held measured at amortised cost -28,692 - -28,692 - Shares of minority shareholders - - - - Tot a l 754,651 673,624 81,027 12.0 The subscribed capital increased by kEUR 140 (previous year: kEUR 100) due to the options exercised from the 2015 share option programs. The capital reserve increased by kEUR 2,227 , mainly as a result of the newly introduced 2024 share option programme. Dividends totalling kEUR 4,401 were distributed for the first time in financial year 2024. Moreover, a share buyback programme was launched in financial year 2024, in which a to tal of 2,100,354 treasury stock shares were repurchased on the capital market by the balance sheet date. The amortised costs for these repurchased shares amounted to kEUR 28,692 as of the reporting date.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 65 flatexDEGIRO AG Capital structure The Group’s balance sheet capital structure, consisting of the share of equity and debt in total capital, has changed as follows compared to the previous year. Balance sheet capital structure compared to the previous year In % 31/12/2024 31/12/2023 Change in % points Equity ratio 14.0 14.8 -0.8 Debt ratio 86.0 85.2 0.8 Liabilities The reported liabilities totalling kEUR 4,645,726 as of 31 December 2024 (previous year: kEUR 3,866,403) with the vast majority being short -term in nature ( kEUR 4,542,873; previous year: kEUR 3,753,379) and consisted mainly of customer deposits with flatexDEGIRO Bank AG (kEUR 4,295,546; previous year: kEUR 3,605,869) which do not bear interest for customers. As of 31 December 2024, there were non -current financial liabilities in the amount of kEUR 102,853 (previou s year: kEUR 113,024). These primarily included liabilities from leases in the amount of kEUR 30,259 (previous year: kEUR 36,760), from the Stock Appreciation Rights Plan in the amount of kEUR 9,745 (previous year: kEUR 9,394), pension obligations amounting to kEUR 6,521 (previous year: kEUR 7,84 7) as well as deferred tax liabilities amounting to kEUR 50,368 (previous year: kEUR 50,275). There were also contingent liabilities from irrevoca ble unutilised credit commitments in the amount of kEUR 1 (previous year: kEUR 153). 2.7 Investments Investments intangible and fixed assets In the past financial year, the focus of activities was on optimising the implementation of regulatory requirements, increasing the automation in various areas of the platform, further expansion of the technical infrastructure, ongoing optimisation of exis ting applications, further development of front-end solutions and the technical integration of DEGIRO into the Group. The main drivers of development services were the continuous development of the core banking system (FTX:CBS) and front -end solutions, the provision of cryptocurrency trading in Germany and the technical integration of DEGIRO. There are no material investment commitments as of the balance sheet date. All investments are financed from current operations.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 66 flatexDEGIRO AG 2.8 Liquidity Cash flow The cash flow statement of flatexDEGIRO AG – here in condensed form – shows the cash flows generated in the financial year. Brief overview of cash flow statement In kEUR 31/12/2024 31/12/2023 Cash flow from operating activities 168,862 63,079 Cash flow from investing activities -48,186 -46,135 Cash flow from financing activities -32,215 -394 Free cash flow prior to accounting changes to the banking business 88,461 16,550 Cash flow from accounting changes to the banking business 511,361 474,166 Non-cash movements in equity 2,446 -7,027 Change in cash and cash equivalents 602,268 483,689 Cash and cash equivalents at the beginning of the period 2,710,701 2,227,012 Cash and cash equivalents at the end of the period 3,312,969 2,710,701 flatexDEGIRO AG was able to meet its financial obligations at all times in the past financial year. There were no liquidity bottlenecks in the financial year. In addition, we foresee no liquidity bottlenecks ahead. The changes in cash flow from accounting changes to the banking business relate to customer deposits and investment decisions derived from this, mainly in the Credit & Treasury area. 2.9 Financial position The following table shows the consolidated balance sheet in condensed form. Brief overview consolidated balance sheet In kEUR 31/12/2024 31/12/2023 Assets 5,400,377 4,540,026 Non-current assets 652,060 568,939 Current assets 4,748,317 3,971,088 Liabilities and shareholders’ equity 5,400,377 4,540,026 Equity 754,651 673,624 Non-current liabilities 102,853 113,024 Current liabilities 4,542,873 3,753,379 The increase in total assets by kEUR 860,351 is primarily a result of the increase in balances with central banks.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 67 flatexDEGIRO AG Non-current assets The non-current assets are shown below. Overview of non-current assets In kEUR 31/12/2024 in % 31/12/2023 in % Change in kEUR Change in % Goodwill 180,649 27.7 180,649 31.8 - - Internally generated intangible assets 110,024 16.9 94,888 16.7 15,136 16.0 Customer relationships 90,330 13.9 98,457 17.3 -8,127 -8.3 Other intangible assets 43,980 6.7 42,767 7.5 1,213 2.8 Property, plant and equipment 55,364 8.5 51,827 9.1 3,536 6.8 Financial assets and other assets 3,305 0.5 4,366 0.8 -1,061 -24.3 Equity instruments measured at fair value through profit or loss (FVPL -EQ) 66,600 10.2 71,393 12.5 -4,793 -6.7 Financial assets measured at fair value through profit or loss (FVPL) 21,263 3.3 23,643 4.2 -2,380 -10.1 Financial assets measured at fair value through other comprehensive income (FVOCI) 79,655 12.2 - - 79,655 - Loans due to customers 889 0.1 948 0.2 -59 -6.2 Tot a l 652,060 100.0 568,938 100.0 83,121 14.6 The line item “Goodwill” consists of the purchase price allocations for DeGiro B .V. acquired in financial year 2020 and the previous acquisition of XCOM AG in 2015. The increase of kEUR 15,136 in internally generated intangible assets is mainly due to capitalised development expenses on FTX:CBS, less ongoing amortisation of assets already completed. The Customer relationships item mainly consists of customer relationships received as part of the acquisition of DeGiro B.V. in the 2020 financial year. The item Equity instruments measured at fair value through profit or loss (FVPL -EQ) consists of shares in residential property and infrastructure funds in the legal form of a SICAV. The change in the residential property fund results from changes in market value amounting kEUR 3,294 and in the infrastructure fund mainly from the capital repayment of kEUR 930. The item “Financial assets at fair value through other comprehensive income (FVOCI)” consists of the investment in bonds from public issuers with a term of more than twelve months.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 68 flatexDEGIRO AG Current assets The current assets are shown below. Overview of current assets In kEUR 31/12/2024 in % 31/12/2023 in % Change in kEUR Change in % Trade receivables 25,106 0.5 21,661 0.5 3,444 15.9 Financial assets measured at fair value through profit or loss (FVPL) 28,762 0.6 31,909 0.8 -3,146 -9.9 Financial assets measured at fair value through other comprehensive income (FVOCI) 161,670 3.4 228,818 5.8 -67,148 -29.3 Loans due to customers 1,193,437 25.1 939,993 23.7 253,444 27.0 Other receivables due to banks 12,601 0.3 13,845 0.3 -1,245 -9.0 Balances with central banks 2,913,917 61.4 2,398,380 60.4 515,537 21.5 Receivables due to banks (on demand) 399,036 8.4 312,294 7.9 86,742 27.8 Cash on hand 16 0.0 27 0.0 -11 -40.7 Other assets1 13,773 0.3 24,161 0.6 -10,388 -43.0 Tot a l 4,748,317 100.0 3,971,088 100.0 777,230 19.6 1 The balance sheet items “Inventories and work in progress” and “Other receivables” are summarised in the new financial statem ent item “Other assets”. The increase in current assets is mainly due to balances with central banks and from short -term loans to customers.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 69 flatexDEGIRO AG Accounting-related internal control system The flatexDEGIRO AG internal control system (ICS) is established based on the internationally recognised framework for internal control systems of the Committee of Sponsoring Organizations of the Treadway Commission (COSO Internal Control – Integrated Fram ework, COSO I, in the version dated 14 May 2013). The Audit Committee of the Supervisory Board of flatexDEGIRO AG monitors the efficacy of the ICS – as required by Section 107 (3) sentence 2 AktG. The scope and design of the ICS are at the discretion and under the responsibility of the Management Board. T he Internal Audit is responsible for independently reviewing the functionality and effectiveness of the ICS in the Group and at flatexDEGIRO AG. The Internal Audit has the comprehensive rights to information, audit and access needed to perform these activities. The accounting-related ICS of flatexDEGIRO AG comprises the principles, procedures, and measures to ensure the correctness of accounting. It is continuously developed and aims to achieve the following: The consolidated financial statements of flatexDEGIRO AG should be prepared in accordance with International Finan cial Reporting Standards (IFRS) as applicable in the European Union and the additional applicable requirements of German commercial law pursuant to Section 315e (1) HGB. In addition, the accounting -rela t ed ICS aims to ensure that the annual financial state ments of flatexDEGIRO AG and the management report are prepared in accordance with the provisions of commercial law. The basic principle for any ICS is that, regardless of how it is specifically designed, there is no absolute certainty that it will achieve its objectives. So, with regard to the accountin g - related ICS there can only be relative, but not absolute, certainty that material misstatements in the financial statements will be avoided or detected. The Group Finance department controls the processes for consolidated accounting and the preparation of the management report. Laws, accounting standards and other pronouncements are continuously analysed to determine whether and to what extent they are rel evant and how they affect accounting. Relevant requirements are documented and communicated, for example in the Group accounting guideline and, together with the reporting timetable for the Group, they form the basis for the financial statement preparation process. In addition, supporting supplementa ry procedural instructions such as the Group accounting guideline, the intercompany guideline, IT systems and IT - supported reporting and consolidation processes, support the process of standardised and proper co nsolidated financial reporting. If necessary, we also use external service providers, e.g., for the valuation of SARs or pension obligations. Global Finance department ensures that the requirements are complied with on a standardised basis Group-wide. The employees involved in the financial reporting process receive regular training. flatexDEGIRO AG and the Group companies are responsible for ensuring that they comply with the guidelines and procedures that apply Group-wide. The respective Group companies e nsure the proper and timely execution of their accounting -rela t ed processes and systems; The Global Finance department supports and monitors them in this. Operational accounting processes are executed by the operational units (service centres). The harmonisation of processes increases the efficiency and quality of processes and therefore also the reliability of the internal control system. In this process, t he ICS secures both the internal service centre process quality and the interfaces with Group companies, by means of suitable controls and an internal certification process.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 70 flatexDEGIRO AG Internal controls defined under risk aspects are embedded in the accounting process. The accounting -related ICS comprises both preventive and detective controls; these include. The effectiveness of the accounting -related ICS is monitored on a Group -wide basis. These procedures are consistently geared towards the risk of possible misstatement in the consolidated financial statements: under risk aspects, financial statement items a nd accounting -related process steps are defined that are regularly reviewed for effectiveness during the year and also on a random sample basis. Where control weaknesses are identified, they are analysed and evaluated, regarding their impact on the consolidated financial statements and the Group Management Report. Significant control weaknesses as well as the associated action plans for processing the ongoing work progress are reported to the Management Board and additionally to the Audit Committee of the S upervisory Board of flatexDEGIRO AG. To ensure the high quality of this accounting-related ICS, the Internal Audit function is closely involved across all stages of the procedures. 2.10 General statement on the Group’s business performance and position External factors, such as geopolitical conflicts and politica l tensions, also led to uncertainty among private investors in 2024. The general decline in high inflation rates and interest rate cuts by major central banks are likely to have had a fundamentally positive impact on investor sentiment. Additional market volatility surrounding the presidentia l election in the USA in late 2024 also temporarily contributed to an upturn in trading activity in the final quarter of 2024. After a significant decline in trading activity by flatexDEGIRO customers at the beginning of the year, the second and third quarters saw a noticeable stabilisation compared to the same period of the previous year. Trading activity in the fourth quarter was significantly higher than in the previous year, not least due to the US elections. Overall, trading activity per customer for 2024 as a whole was on par with the previous year at an average of 22 transactions (previous year: 22 transactions). Thanks to further acceleration in new cust omer growth and improved average gross commission income per transaction, flatexDEGIRO succeeded in significantly increasing its gross commission income even in this subdued environment. At the same time, the rise in the average ECB interest rate for the deposit facility and the increase in customer assets under custody also contributed to flatexDEGIRO’s significant increase in interest income, as did the higher utilisation of fully collateralised margin loans by flatexDEGIRO customers. Since the acquisition of DeGiro B. V. the Group has seen itself as one of the biggest and fastest -growing online brokers for retail investors in Europe, as measured by the number of transactions settled and the number of customer accounts. All major markets in the brokerage business showed significant growth in terms of new customers.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 71 flatexDEGIRO AG The fact that the remediation of serious findings in the BaFin audit has been completed is another positive aspect of the past financial year. At EUR 480.0 Mio., the Group’s revenue was 22.9% higher than in the previous year (mEUR 390.7) due to the significant increase in commission and interest income. Due to the large operating leverage that flatexDEGIRO has because of its fully integrated business model, changes in transactions as well as interest rate changes have a direct effect on the operating result and the margins achieved. Accordingly, the opera ting result (EBITDA) rose disproportionately by 44.2% to mEUR 202.5 (previous year: mEUR 140.4). The EBITDA margin improved from 35.9% in 2023 to 42.2% in 2024. On the cost side, higher personnel costs were recorded, driven by general wage increases and provisions for personnel measures and variable remuneration components. Marketing expenses were reduced again compared to the previous year despite accelerated cus tomer growth . General administrative expenses totalled mEUR 60.7 in 2024 and were thus EUR 11.2 million higher than in the previous year (mEUR 49.5). Higher legal and consultin g costs along with increased IT costs contributed significantly to this rise. Earnings before taxes (EBT) increased to mEUR 155.7 in 2024 (previous year: mEUR 103.0). At 32.4%, the EBT margin was thus significantly higher than previous year’s figure (26.4%). Net profit for the year totalled mEUR 111.5 (previous year: mEUR 71.9). Altogether, the Management Board of flatexDEGIRO AG considers that the course of business at the Company was very positive, particularly due to the fact that even in this challenging market environment and despite a number of negative non-recurring effects as well as the continued high priority focus on th e elimination of BaFin findings in 2024, it was possible to increase the customer base significantly and to improve all revenue and earnings indicators compared with the previous year and achieve the highest consolidated net profit in the company’s history . At the same time the organisational structure was equipped for further growth with additional recruitment and the completed process improvements. Additionally, the product range was expanded with the launch of crypto trading in Germany. 2.11 Report on events after the closing date For information on significant events that occurred after the end of the reporting period, please refer to our comments in Note 39.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 72 flatexDEGIRO AG 3 Economic development of flatexDEGIRO AG In addition to reporting on the Group, the development of flatexDEGIRO AG in financial year 2024 is explained in a condensed version below. The company’s annual financial statements are prepared in accordance with the provisions of the German Commercial Co de and the German Stock Corporation Act. The consolidated financial statements comply with the International Financial Reporting Standards as applicable in the European Union. This results in differences between the annual financial statements prepared in accordance with German commercial law and the consolidated financial statements in terms of accounting and valuation methods. They relate especially to the measurement of financial instruments, the recognition and measurement of provisions and deferred taxes and the presentation of leases in the balance sheet. The annual financial statements of flatexDEGIRO AG, which have been issued with an unqualified audit opinion by Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft, Düsseldorf, are transmitted electronically to the company register office for entry i n the company register and can be accessed via the company register website. 3.1 Financial performance of flatexDEGIRO AG As the parent company of the Group, flatexDEGIRO AG performs the central management function for the flatexDEGIRO Group (the Group). In addition to the traditiona l functions of a holding company, which include the acquisition, management and sale of equity participations in affiliated companies within the Group, it also performs operation a l tasks in the purchasing, development, production, distribution and maintenance of software and hardware. Furthermore, it provides management, consulting and other services, particularly to its subsidiaries, and offers these services to third parties in the financial services sector. Specifically, the company participates in the operating results of the affiliated companies via profit transfers. Consequently, the economic situation of flatexDEGIRO AG is largely dependent on the development of its direct and indirect subsidiaries. The economic position of flatexDEGIRO AG thus generally corresponds to that of the Group, which is explained in the chapter “Economic Report” of the Combined Management Report.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 73 flatexDEGIRO AG Revenues and net profit are the most important financial performance indicators for flatexDEGIRO AG. The following overview presents the condensed profit and loss statement of th e parent company flatexDEGIRO AG in accordance with German C ommercial law, under consideration of the regulations on the presentation of the profit and loss statement pursuant to Section 158 AktG. Condensed Profit and L oss Statement of flatexDEGIRO AG In kEUR 2024 2023 Revenues 110,612 90,931 Decrease (previous year: increase) in inventories of finished goods and work in progress -12 17 Other operating income 5,927 2,064 Raw materials and consumables 12,113 13,779 Personnel expenses 52,887 53,886 Amortisation of intangible fixed assets and depreciation of property, plant and equipment 9,483 7,485 Other operating expenses 33,871 25,507 Income from profit transfer agreements 114,133 89,260 Other interest and similar income 411 573 Depreciation and amortisation of financial assets and marketable securities - 753 Interest and similar expenses 522 579 Tax on income 16,511 5,642 Earnings after taxes 105,685 75,214 Other taxes -490 -330 Net profit 106,174 75,544 Retained earnings from the previous year 75,544 47,464 Dividend payment 4,401 - Allocation to retained earnings 71,142 47,464 Balance sheet profit 106,174 75,544 flatexDEGIRO AG generated revenues of kEUR 110,612 in financial year 2024 (previous year: kEUR 90,931) and significantly exceeded the expectation of “slight increase” or “+5% to +10%” stated in previous year’s forecast report. The increase in revenues compared to the previous year totalled kEUR 19,681 (+22%). This includes income from affiliated companies amounting to kEUR 101,563 (previous year: kEUR 81,215). The latter predominantly results from services for software development, operation, licences and maintenance as well as charging of administrative costs as part of a Group allocation. The increase is primarily the result of the compensation for deposit -related fees and the increase in revenues for LOX. Revenue with third parties is predominantly generated with customers in Germany. Other operating income amounts to kEUR 5,927 (previou s year: kEUR 2,064). Personnel expenses in financial year 2024 totalled kEUR 52,887 (previous year: kEUR 53,886). The cost of raw materials and consumables dropped from kEUR 13,779 to kEUR 12,113. Other operating expenses amounted to kEUR 33,871 (previous year: kEUR 25,507). The increase is primarily attributable to the rise in IT expenses to kEUR 9,420 (previous year: kEUR 4,681), advertising and travel expenses of kEUR 3,657 (previous year: kEUR 2,351) as well as legal and consulting costs of k EUR 3,900 (previous year: kEUR 1,503). Amortisation of intangible assets and depreciation of property, plant and equipment amounted to kEUR 9,483 (previous year: kEUR 7,485). The increase is attributable to the depreciation of investments in hardware at various locations, network equipment and data centres. The income taxes of flatexDEGIRO AG for 2024 amounted to kEUR 16,511 (previous year: kEUR 5,642). flatexDEGIRO AG is the controlling company in a two -tier tax group with flatex Finanz GmbH (direct tax group subsidiary of flatexDEGIRO AG) and the domestic p art of flatexDEGIRO Bank AG (indirect tax group subsidiary of flatexDEGIRO AG). In the reporting year, there was an overall increase in the recognised tax expense, which is attributable to an increase in taxable income in Germany.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 74 flatexDEGIRO AG As in the previous year, the allocation of interest income from deposit facilities between flatexDEGIRO Bank AG and the Dutch branch of flatexDEGIRO Bank AG was also changed in 2024. flatexDEGIRO AG’s profit after tax under commercial law amounted to kEUR 106,174 in the financial year (previous year: kEUR 75,544). At kEUR 106,174, flatexDEGIRO AG”s net profit under commercial law in financial year 2024 is significantly higher than previous year’s figure of kEUR 75,544. Additionally, with an increase of kEUR 30,630 (+41%), the net profit clearly exceeds the expectation of a “significant increase” or “+10% to +15%” stated in the “forecast report” section of previous year’s management report. 3.2 Liquidity of flatexDEGIRO AG The following overview shows the condensed cash flow statement of flatexDEGIRO AG in accordance with the German Commercial Code for the reporting year 2024 and the previous year 2023. Condensed cash flow statement of flatexDEGIRO AG In kEUR 2024 2023 Cash flow from operating activities 64,378 14,565 Cash flow from investing activities -8,550 -8,387 Cash flow from financing activities -36,497 -2,970 Change in cash and cash equivalents 19,331 3,208 Cash and cash equivalents at the beginning of the period 36,530 33,321 Cash and cash equivalents at the end of the period 55,861 36,530 In the reporting year, cash flow from operating activities totalled kEUR 64,378 (previous year: kEUR 14,565). This corresponds to an increase in cash flow from operatin g activities of kEUR 49,813. In the cash flow statement of flatexDEGIRO AG in accordan ce with the German Commercial Code, cash flows from profit and loss transfer agreements with subsidiaries are presented in the cash flow from operating activities instead of the cash flow from invest ing activities, in deviation from DRS 21. The same applies to disbursements to subsidiaries for capital increases and inflows from capital repayments by subsidiaries. Cash flow from investing activities increased by kEUR 163 compared to the previous year. In the reporting year, the cash flow amounted to kEUR -8,550 (previous year: kEUR -8,387), including disbursements for investments in intangible assets and property, plant and equipment as well as inflows from the disposal o f intangible assets and property, plant and equipment. Cash flow from financing activities amounted to kEUR - 36,497 in financial year 2024 (previous year: kEUR - 2,970). The cash flow from financing activities in financial year 2024 predominantly includes cash outflows from the first -tim e disbursement of a dividend to shareholders in the amount of kEUR 4,401 (previous year: kEUR 0) and the payments for the buyback of treasury stock shares as part of the share buyback programme launched in October 2024 in the amount of kEUR 28,692 (previous year: kEUR 0). flatexDEGIRO AG’s cash and cash equivalents increased by kEUR 19,331 in the reporting period (previous year: kEUR 3,209). The cash and cash equivalents of the Group parent company amounted to kEUR 55,861 as of the balance sheet date on 31 December 2024 (previous year: kEUR 36,530).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 75 flatexDEGIRO AG 3.3 Financial position of flatexDEGIRO AG The following table summarises the assets in flatexDEGIRO AG’s balance sheet under commercial law as of the balance sheet date of the financial year and the previous year. Assets In kEUR 12/31/2024 12/31/2023 Assets Fixed assets 477,750 455,566 Intangible assets 12,708 11,752 Property, plant and equipment 16,123 14,451 Financial assets 448,919 429,363 Current assets 185,910 146,901 Inventory 587 388 Receivables and other assets 129,462 109,983 Cash and cash equivalents 55,861 36,530 Prepayments and accrued income 9,095 5,576 T otal assets 672,755 608,042 Fixed assets increased by kEUR 22,184 over the course of the year due to the kEUR 19,555 increase in financial assets. Current assets primarily include receivables from affiliated companies as part of the profit transfer totalling kEUR 114,133 (previous year: kEUR 89,202). Cash and cash equivalents primarily include bank balances and insignificant cash in hand. The following table summarises the liabilities in flatexDEGIRO AG’s balance sheet under commercial law as of the balance sheet date of the financial year and the previous year. Liabilities In kEUR 12/31/2024 12/31/2023 Liabilities and shareholders’ equity Equity 623,939 550,401 Subscribed capital 108,032 109,993 Additional paid -in-capital 229,647 229,330 Retained earnings 180,086 135,535 Balance sheet profit 106,174 75,544 Debt capital 48,816 57,642 Provisions 29,848 36,833 Liabilities 14,001 17,450 Prepaid income 4,968 3,359 Total liabilities and shareholders’ equity 672,755 608,042 Equity as of 31 December 2024 amounted to kEUR 623,939 (previous year: kEUR 550,401). Provisions decreased by kEUR 6,985 and amounted to kEUR 29,848 as of 31 December 2024 (previous year: kEUR 36,833). Liabilities amount to kEUR 14,001 (previous year: kEUR 17,450). There are no other non -current operatin g loans. Trade payables and liabilities to affiliated companies totalled kEUR 1,562 (previous year: kEUR 5,656). At kEUR 672,755, the balance sheet total is above previous year’s level (previous year: kEUR 608,042).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 76 flatexDEGIRO AG 3.4 Forecast and opportunities report of flatexDEGIRO AG The economic development and success of its operating subsidiaries, in whose development it participates via profit and loss transfer agreements, are decisive for the net asset, financial, and earnings position of flatexDEGIRO AG. Due to the interdependencies with the Group companies, the statements made in the “Forecast and opportunities report” section also reflect the expectations of the Group parent company. The corresponding expectations regarding the development of the Group parent company flatexDEGIRO AG are presented in the following table. Forecast of the most important financial performance indicators In kEUR 2025 2024 Revenues moderately decreasing to moderately increasing (-5% to 5%) 110,612 Net profit moderately decreasing to slightly increasing (-5% to 10%) 106,174 Description Extent of change Moderate +/- 0% to 5% Slight +/- 5% to 10% Significant +/- 10% to 15% Strong More than +/ - 15% 3.5 Risk report of flatexDEGIRO AG The course of business of flatexDEGIRO AG as the Group parent company is largely dependent on the development of its operating subsidiaries. It is linked to the subsidiaries via profit and loss transfer agreements and participates in the operating results of the subsidiaries. This means that flatexDEGIRO AG is essentially exposed to the same risks as the Group, which are explained in the “Risk report” section of the Combined Management Report.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 77 flatexDEGIRO AG 4 Forecast and opportunities report The period for business development forecasts refers to the financial year 2025. In the forecast, customer trading activity as well as the utilisation of credit lines and the deposit portfolio are taken into account. The outlook for developments in 2025 is still extremely uncertain in respect to the expected trading activity of retail investors. This is attributable to ongoing geopolitical conflicts, political tensions and changing interest rate condition s. Customer ac tivity at flatexDEGIRO began to stabilise at a relatively low level in 2024. In the past financial year, flatexDEGIRO was able to continue growing its customer base and raise the average volume of customer deposits and the securities loan book. In the 2025 planning period, flatexDEGIRO expects revenue to be similar to that in the 2024 financial year, with a range of - 5% to +5%. The change in the planning timeframe is due to falling interest income as a result of the key interest rate adjustments, which is expected to be offset by rising commission income. Due to the general increases in interest rates, flatexDEGIRO adjusted the interest rate for margin loans at flatex and DEGIRO upwards at the beginning of 2024. With interest rates declining again in 2024, flatexDEGIRO has consequently also reduced the interest rate for margin loans again as of 1 January 2025. Depending on the future development of interest rates, it cannot be ruled out that there may be further adjustments to the interest rate for securities in the course of 2025. While such steps would generally have a dampening effect on the achievable interest income, there is also a possibility that lower interest rates could stimulate trading activity on the capital market and the utilisation of margin loans. As a result, this would have a positive impact on flatexDEGIRO's commission income and it is expected that the average commission income per transaction will remain at the previous year's level. After several years of strong growth in the customer base, flatexDEGIRO expects further customer growth in 2025 and anticipates that the annual gross customer growth will be at a level comparable to that of the previous year (2024: around 421,000). Customer trading activity is difficult to forecast. In its base case for 2025 the Management Board assumes that trading activity by retail investors will remain at the level of 2024 as a whole (2024: average of 22 transactions per customer account). Avera ge commi ssion income per transaction are expected to be on or slightly above the previous’ year level. Due to the effects of a changing product mix resulting from a change in trading activity, this estimate is also subject to fundamental uncertainty. flatexDEGIRO generates interest income from investing customer cash under custody. This takes place partly in the form of margin loans, which are in turn made available to our customers, as well as deposits, for example with the Deutsche Bundesbank, or the purchase of sovereign bonds with good credit ratings. In its forecast for 2025 the Management Board assumes a total volume of cash under custody of around EUR 4.0 billion on average over the year. Around EUR 1.2 billion of the total is expected to be used for the fully collateralised margin loan business. The interest income generated on the remaining cash under custody depends largely on the ECB depository rate. With regard to their change, flatexDEGIRO is guided by current market forecasts, which expect interest rates to fall further in 2025. Based on these market expectations, the average weighted interest rate on ECB deposit facilities in 2025 of roughly 2.4% would be about 100 basis points below the level of the average for 2023. Especially the years 2022 and 2023 showed that risin g interest rates are accompanied by rather subdued trading activity by retail investors. This suggests that a possible reduction in interest rates could inversely result in an uptick in trading activity. However, the actual occurrence of such an uptick, as well as its extent and timing, cannot be reliably predicted by the management at this time. Therefore, it is not part of the general forecast for 2025.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 78 flatexDEGIRO AG This also applies to potential product launches, which management is actively preparing for 2025 but for which there are not yet any concrete estimates of the timing and economic impact. They are also not part of the genera l forecast for 2025. The same app lies to trading in crypto - currencies, which has been offered in Germany since December 2024, while the European rollout is currently still being implemented. The Management Board therefore believes that this is a good starting point for achieving a development of the key financial performance indicators at around previous year’s level, even if trading activity by retail investors should remain subdued in 2025 a nd the ECB should cut interest rates over the course of the year as expected. Flatex and DEGIRO segments The expected revenue and earnings performance in the flatex and DEGIRO segments is determined by the commission income generated from online brokerage as well as the interest income from margin loans to existin g brokerage customers and from the conservativ e investment of customer cash under custody (for example with the Deutsche Bundesbank or in government bonds with good credit ratings). The factors and assumptions described above are therefore expected to have a largely identical effect on the performance of the respective segments. These fundamental assessments are therefore not repeated here for each specific segment. In all the relevant markets for the flatex and ViTrade brands and for the DEGIRO brand, the customer base is expected to grow organically. Absolute customer growth in the “DEGIRO” segment is expected to exceed that of the “flatex” segment again in 2025 due to its broader geographical positioning. Since December 2024, customers of the flatex brand in Germany have been able to trade directly in crypto assets. With guaranteed total costs, including spreads, flatex intends to offer its customers a particularly attractive price and to ensure a particula rly high level of transparency. The introduction of crypto trading at flatex in Austria as well as in its international operations at DEGIRO is planned for 2025. Due to the rollout in various markets throughout the year, the Management Board assumes that t he first significan t revenues in crypto trading in 2025 can be further expanded in the subsequent years. Further product launches have the potential to impact revenues and earnings development in the two segments to varying degrees, depending on market relevance and the legal or regulatory framework. For example, the Management Board expects to be able to offer securities lending to DEGIRO customers in most markets in 2025, whereas a launch in the German market is not planned. Existing brand strategies are generally revised at brand level. Their respective success and a correspondingly positive customer response at country level will contribu te significantly to the continued short and medium -term market success of the various se gments. Further harmonisation and, where necessary, automation of flatexDEGIRO’s business processes will continue to be the focus of segment activities alongside organic growth. In the medium term the aim is to have a standardised joint platform for all the key pr ocesses and data of the flatex and DEGIRO brands. Following the successful completion of key BaFin findings, these harmonisation efforts will be given higher priority in the coming years.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 79 flatexDEGIRO AG Plan assumptions and forecasts for key performance indicators In its forecast, the Management Board concentrates on financial indicators. Commercial performance indicators such as customer account growth, average customer trading activity and the number of transactions processed continue to be closely monitored and have also been made available to the public in the form of a monthly report since the beginning of 2023. However, they do not represent significant control variables for the management. The expected development of the Company is based on the assumptions above regarding the development. The trading activity of retail investors, which has a significant influence on the overall performance, is difficult to forecast. This is why the Management Board uses a scenario presentation to illustrate the expected overall development. The corresponding expectations are shown in the following table. Forecast of the most important financial performance indicators In kEUR 2025 2024 Revenues moderately decreasing to moderately increasing (-5% to 5%) 480,023 Consolidated net profit moderately decreasing to slightly increasing (-5% to 10%) 111,535 Description Extent of change Moderate +/- 0% to 5% Slight +/- 5% to 10% Significant +/- 10% to 15% Strong More than +/ - 15% Opportunities report analysed at regular intervals and reported to the Management Board. A significant opportunity for the flatexDEGIRO Group lies in the expansion of the Group’s value creation following the acquisition of DEGIRO, the broadening of the product and service range as well as the resulting gain in market share. As a pure online broker, flatexDEGIRO competes with a large number of players that offer (“partly only limited”) ac cess to capital markets for retail investors, including traditional banks (online and offline) and other online brokers. In light of the trend from offline to online and flatexDEGIRO’s strategy of concentrating on retail investors who already have basic trading knowledge, gaining market share from online and offline banks is considered to be a key growth driver. As part of its strategic focus and medium -term planning, the Management Board is actively working on additiona l measures to sustainably expand and activate the customer base, introduce new product and service offerings, enhance the organisation and harmoni se the existing IT landscapes. In the medium term, the Management Board expects to be able to achieve a significant increase in revenues and consolidated net profit compared to 2024. The Group intends to grow organically with its online brokerage brands in existing markets (currently active in 16 European countries), by winning new customers with its attractive pricing model, an extensive and independent range of products, and transpar ent, convenient and trader -friendly platforms. flatexDEGIRO concentrates its growth on markets and customer groups that make a positive earnings contribution. The focus is particularly on the core markets (Germany, Netherlands and Austria), where flatexDEG IRO has a broad customer base with the flatex and DEGIRO brands and a relatively high market share, and on growth markets (France, Spain, Portugal, Italy, Switzerland, Britain and Ireland), where the greatest growth potential has been identified for the years ahead.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 80 flatexDEGIRO AG In the brokerage business, “digital proximity” to the customer is also key. Alongside transparent communication and rapid provision of relevant information, this includes a stable brokerage platform with state -of-the-art functions, and innovative products and processes. The added value for our customers arises from the interaction of the product, platform, and price. In addition to an attractive price -performan ce ratio with an extensive, innovative and constantly growing product portfolio, continuous invest ment in the platform is an important part of ensuring consistent availability even on days with a particularly high level of trading. To increase profitability, the Group intends to focus more strongly on activating inactive customers and customers with lower trading activity. One objective is therefore to further simplify the access to the capital market by selectively extending the fun ctionalities for additional product and investor groups. Conversely, there is a distinction between customer preferences in the online brokerage market. In addition to customers with a long -term horizon (e.g., ETF and fund savings plans or bonds), there ar e also customers with short-term interests (e.g., ETPs). Accordingly, the attractiveness of the offering for particularly active trading customers is supposed to be expanded. The Group will continue to expand its strong flatex and DEGIRO brands in both directions and maintain the ViTrade brand 's focus on professional traders. flatexDEGIRO is also in a regular dialogue with active customers at various levels. We take customer requests and needs on board in face -to-face conversations and in discussions at investment conferences. We also organise roadshows, customer events and tra ining courses that also include feedback sessions with the participants. Digital media such as videos, webinars and virtual trader get -togethers are also on offer. The intention is to intensify these exchanges, particularly with the top 1% of our customers (in each country), in order to gain a better understanding of their needs and to work with these customers on products, services and functions. In addition, the current market environment offers catch -up potential in the online brokerage segment in the event of an improvement in general capital market sentiment and an associated increase in trading activity by retail investors. Expanding the volume of margin loans and the cash holdings generally held by customers also has the potential to further improve the Group’s profitability. The management expects continuing growth in online brokerage markets, driven by the continuation of secula r trends. The company believes that due to its pan -Europea n focus, strong brands and attractive customer offerings, it is well positioned to continue to benefit from these growth trends and gain additional market share in the future.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 81 flatexDEGIRO AG 5 Risk report Risk management system flatexDEGIRO AG conducts its online brokerage and banking business in a regulated market. As such, in addition to the internally driven changes in the business environment of the Group, adapting to changes in legal and regulatory frameworks is essential to the Company’s success. Current developments are constantly being monitored and carefully analysed. The Management Board incorporates the emerging opportunities and potential threats into its business and risk strategy and adjusts it accordingly as necessary. Monitoring and managing the risks of the Group (the scope of the risk consolidation corresponds to the scope of consolidation companies under German commercial law) is a central component of the Company’s management tools at flatexDEGIRO AG. In principle flatexDEGIRO AG promotes a risk culture that ensures compliance with high ethical standards and a pronounced awareness of risks in all relevant business processes, both among management and other employees of the flatexDEGIRO Group. Beyond thi s, the limitation of risks is one of the key performance targets for all flatexDEGIRO Group managers within their respective areas of responsibility. In this context, each manager should develop effective, task -specific control processes and ensure their ongoing application. In accordance with Section 2f (1) of the German Banking Act (KWG), flatexDEGIRO AG has been the superordina te institution of the Group since 2022 and is responsible for the Group-wide tasks of risk controlling in accordance with the “Minimum Requirements for Risk Management” (MaRisk) A T 4.4.1. It thereby contributes significantly to the cross - departmental and Group -wide tasks anchored in risk management and risk control processes, i.e. identification , assessment, management, monitoring and communication of risks. A group -wide risk strategy is intended to ensure uniform r isk management procedures and methods for all group companies. In this sense, the look -through procedure is applied in the risk-bearing capacity calculation in order to look through to the level of the individual companies. The head of the Risk Controlling department is involved in all important risk policy decisions of the Management Board. In the event of a change in the leadership of the Risk Controlling department, the Supervisory Board of flatexDEGIRO AG will be informed immediately. Risk identification and risk assessment flatexDEGIRO AG conducts a risk inventory on a regular basis and may also updated it on the basis of current events. Based on the last risk inventory carried out in the fourth quarter of 2024, the same key types of risks as in the previous year were identified: credit risk, market price risk (including interest rate, credit spread, real estate price and FX risks), operationa l risk, liquidity risk and other risks (including business risk). In the risk inventory process of flatexDEGIRO AG, the risk assessments of all significant corporate divisions are carried out in a consistent manner. This involves estimates of capital, financial position and liquidity and adopting both perspectives, the normative and the economic perspective, in accord ance with the BaFin guidelines for risk -bearing capacity. A materiality assessment for relevant risk types is conducted on this basis, and concentrations of risk and financial performance are included at a later stage. A materiality assessment of ESG risks was also carried out. This entails analysing ESG risk drivers in detail along with their impact on the classic risk types. The outcome was that ESG risks exist almost exclusively in the area of non -financial risk and other risks. To summarise, the risk inventory therefore tracks all the risk types relevant for the ICAAP and ILAAP, which are measured and managed in the downstream, overarching risk management process. The management and the supervisory body of flatexDEGIRO AG are regularly informed about the development of the main risk types as part of the ongoing risk reporting.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 82 flatexDEGIRO AG Risk management As of 31 December 2024, the risk management at flatexDEGIRO follows the dual management approach comprising a normative and an economic perspective, in accordance with the BaFin guidelines for risk -bearing capacity. The normative perspective is based on th e capital ratios of Pillar I and takes into account a period of at least three years on the basis of strategic business planning. The objective of the normative risk -bearing capacity is to ensure compliance with the regulatory minimum capital requirements and regulatory structural capital / liquidity requirements of flatexDEGIRO AG to ensure the continuation of the Company (“going concern” concept), both in the consideration of a base case scenario and in deviating adverse scenarios. The objective of the economic perspective is to ensure the economic risk -bearing capacity (one-year observation period). flatexDEGIRO applies the economic perspective to both risk quantification and the risk-bearing capacity and also includes elements that are not or not adequately reflected in the accounting or regulatory capital requirements (Pillar I). In accordance with AT 4.1 no 2 MaRisk, both perspectives have the objective of taking appropriate account of the procedures used to ensure risk-bearing capacity both for the continuation of flatexDEGIRO as well as to protect creditors from economic losses. To reflect these objectives, flatexDEGIRO AG carries out scenario-based risk -bearing capacity calculations (includin g stress tests) on a regular basis, which take possible concentration risks and potential extreme developments in the Group’s (market) environment into account and ensure its capital adequacy even under unfavourable conditions. The findings from these risk capacity analyses are used by the Company to install risk control and risk management requirements for the Group’s operating businesses by way of an adequate risk limitation system. Adjustments to the risk limitation system are made in close coordination between the Group’s management and the Risk Controlling department. Ongoing monitoring measures and a comprehensively implemented risk communication system (risk reportin g) should ensure that the risks taken by flatexDEGIRO AG remain within the strategic specifications and its risk -bearing capacity. In addition, they enable a rapid reaction to emergin g risk control needs. The monitoring and control instruments used in this process, in the form of sub -monthly and monthly reports, are presented in more detail below. Risk monitoring and risk communication Management is supplied with current figures pertaining to the risk and financial performance at flatexDEGIRO AG by means of regular reports. Such reports also ensure continuous ad - hoc reporting. As a central (risk) management instrument, the risk cockpit reporting provides weekly information on the key risk figures and limit utilisation levels required for management as well as on the development of relevant early warning indicators. It also contains comments on control - relevant issues and, where appropriate, recommendations for necessary adjustments. The risk cockpit reporting can also take place more frequently (e .g. daily) as needed (e.g. in a crisis). The cockpit described above is complemented by the Monthly Risk Report (MRR) (overall risk report as required by MaRisk), which contains a month-based detailed presentation and commentary on the Group’s risk and financial performance and supplementary addi tional analyses of the Group’s opportunity and risk situation. The MRR is also submitted to the Supervisory Board, among other parties, and discussed in detail with the management team and Supervisory Board in regular finalisation meetings.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 83 flatexDEGIRO AG Risk report, including risk reporting on the use of financial instruments The following section describes the key risks flatexDEGIRO AG is exposed to as a result of its operating activities. Managing and limiting credit risks According to the internal definition, credit risk means the risk of losses due to the default of counterparties (borrower, issuer, contracting party) and from changes in the creditworthiness of these parties. Credit risks at flatexDEGIRO AG in the Treasury department stem from conservatively selected financial investments (including interbank investments, government and German state bonds, bank bonds, covered bonds) and from investments in special funds, which supplement the sector diversification of the Group’s overall portfolio, such as through infrastructure financing and residential real estate investments. The investment/lending strategy and the limits based on it are intended to ensure a wide diversification of individual positions, so that concentration risks remain limited. Along with risk -averse selection of business partners, risks are also limited by means of ongoing monitoring of credit ratings on the basis of publicly available data. Currently, credit risks of the treasury portfol io are monitored on a daily basis using CDS prices and rating changes and are communicated daily to the relevant decision-makers. The Group is also exposed to credit risks from the traditiona l lending business, particularly flatexDEGIRO Bank AG as a credit institution. It pursues a strategy of fully collateralised lending in this area. By issuing security-backed loans (Lombard & flatex -flex loans) via the flatex and ViTrade brands and (margin loans) via the DEGIRO brand, the flatexDEGIRO group is exposed to credit risk. Through appropriate requirements pertaining to the security type, credit rating, volatility and liquidity of the securities accepted as security, as well as conservative loan - to-value ratios and ongoing monitoring of credi t lines and securities, the Group ensures that the security -backed loans taken up by customers are also sufficiently covered by deposited securities even when prices are falling. Scenario analysis of the collateralised security holdings are carried out monthly on the basis of a VaR simulation (99.9% confiden ce level; holding period depending on the respective collatera l terms) and is included in the risk-bearing capacity calculation . Furthermore, stress tests with significant market distortions are carried out on an ongoing basis to ensure that securities are adequately collateralised. In the reporting year, flatexDEGIRO AG fully implemented its risk structure as part of the credit strategy that already defined in 2022 by completely reducing non -strategic loan portfolios (football financing, factoring, other asset -based). Only the portfolios already in liquidation will not be reduced until final liquidation/realisation in (most likely) 2025. The credit strategy now focuses on retail credits with securities as collateral, which are generally lower -risk and are now to be further expanded. The total amount of credit risk (calculated in the economic perspective with a 99.9% confidence level) was kEUR 11,091 as of 31 December 2024 (31 December 2023: kEUR 11,438). The distribution of credit risks at flatexDEGIRO AG has the following structure. Overview of the credit risk distribution In kEUR 2024 2023 Loans secured by securities 1,127 1,199 Loans not secured by securities 5,500 5,643 Banks 2,646 3,306 Bonds 1,051 296 Funds 767 994 Tot a l 11,091 11,438
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 84 flatexDEGIRO AG Risk measurement For the calculation of credit risks as part of the risk -bearing capacity calculation in the economic perspective, flatexDEGIRO uses the IRB formula according to Gordy, with a standard confidence level of 99.9% for a one -year time horizon. The CVaR (credit value at risk) calculated in this way is recognised as an unexpected loss (“UL”) in the economic perspective. The expected loss (EL) is calculated by multiplying the probability of default (PD) of the rating grade with the corresponding exposures at default (EAD) and a loss given default (LGD). Corresponding historical PDs and LGDs are used for all items with unsecured portions. Furthermore, no diversification effects are recognised to reduce risk. Concentration risks are currently effectively limited by requirements for the diversification of counterparty default risk-bearing positions (primarily according to the geograph ic spread, publicly available ratings, and the maturity of the investments) in the investment strategy pursued. The bank’s total counterparty default risk amounted to mEUR 11.1 as of 31 December 2024. The expected loss (EL), which is also used for internal management, was recognised as a total of mEUR 0.18 for the risk provisioning (IFRS Stage 1 and 2) for the business affected by credit risks. Managing and limiting market price risks Market price risks are understood by flatexDEGIRO AG as loss risks due to changes in market prices (share prices, exchange rates, real estate prices, interest rates) and due to price-influencin g parameters (e.g. volatilities, credit spreads). Similarly, to the credit risk, the market price risk is controlled and managed with the Value at Risk (VaR). The VaR does not represent the maximum possible loss that could occur in extreme market situations but is based on a historical period. For the eco nomic perspective of risk -bearing capacity, a holding period of one year with a confidence level of 99.9% is also assumed for the sake of consistency. When limits are exceeded, countermeasures are initiated immediately. The Group only takes limited market risks, focusing in particular on generating stable earnings that contribute to a diversification of the financial performance and therefore to a reduction of earnings concentrations. None of the companies belonging to the Group operates a trading book. The following material sub -risk types are considered here . Interest rate risk flatexDEGIRO AG has stable and sizeable customer deposits over the course of time ( flatexDEGIRO Bank AG). flatexDEGIRO engaged in maturity transformation to a minor extent and manages interest rate risk with a conservative assets and liabilities management. The Treasury department only invests cash in short- to medium-term investments in the banking business. In addition, interest rates can be actively adjusted at short notice in the traditional lendin g business (especially for margin loans) and customer deposits generally do not earn positive interest. This creates additional earnings opportunities for fl atexDEGIRO AG. An ongoing calculation of interest rate risks on the basis of a VaR calculation (99.9% confidence level; one -yea r observation horizon) ensures that negative developments in interest rate risk are recognised early on and countermeasures can be initiated. Furthermore, flatexDEGIRO AG expanded its stress tests to include additional scenarios for interest rate risk in the context of rising interest rates. The loss estimate based on Value at Risk is in the magnitude of kEUR 16,376 (previous year: kEUR 13,028). flatexDEGIRO Bank AG also calculates potential interest rate risks for the banking book pursuant to the regulatory requirements for Interest Rate Risk in the Banking Book (IRRBB) in accordance with supervisory requirements. For details, see Disclosure Report of the flatexDEGIRO Group.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 85 flatexDEGIRO AG Credit spread risk The Group is vulnerable to losses due to an increase in credit spreads through investments in bonds in the Treasury Department. The investment is mainly limited to German government and federal state bonds, US and CHF treasuries. The risk is accepted from a strategic point of view, especially due to the excellent credit rating and short -term duration of these investments. The Bank uses a VaR approach (99.9% confidence level; one -year observation horizon) for measuring the credit spread risk. The loss estimate for the credit spread risk made on the basis of the value at risk is in the order of mEUR 2.55 on 31 December 2024 (previous year mEUR 1.58). Property price risk The Group is invested in a diversified German residentia l property portfolio through two fund investments. The focus is on residential properties in the medium rental price segment, with investments in economically strong, regional German cities and their respective metropolitan areas. This involves a risk of loss due to changes in property market prices. The Group uses a VaR approach (99.9% confidence level; one - year observation horizon) for measuring property price risk. The loss estimate for property price risk based on Value at Risk is in the order of mEUR 9.8 as of 31 December 2024 (previous year: mEUR 9.2). FX risk Within the scope of financial commission business in brokerage, FX risks arise from peak regulations (corpora t e actions, maturities, income) in clearing and settlement in securities processing; positions arising from peaks are closed on the following day. The Group uses a VaR approach (99.9% confidence level; one -year observation horizon) for measuring FX risk. The loss estimate for FX risk based on Value at Risk is in the order of mEUR 1.68 as of 31 December 2024 (previous year: mEUR 0.8). The Group cockpit is updated on a regular basis with control - relevant information concerning flatexDEGIRO AG’s market price risks, meaning that the Group’s management team receives this information every week. The market price risks are also reflected in the MRR of the Group, in such a way that detailed presentations and comments on the current risk situation are ensured and, if necessary, adjustments may be initiated. Managing and limiting liquidity risks flatexDEGIRO AG defines its liquidity risk as the risk that it cannot fully and/or in a timely manner meet its current or future payment obligations from the available financial resources. As a consequence, refinancing resources may need to be raised at hi gher interest rates, or existing assets may need to be liquidated at a discount to provide additiona l (temporary) financial resources. Additionally, flatexDEGIRO AG generally subsumes the refinancing risk and the market liquidity risk under the term liquidity risk. Just like with the other risk types, the liquidity risk is simulated on the basis of a liquidity VaR approach (99.9% confiden ce level; one -year observation horizon) for potential outflow rates; the potential refinancing costs are recognised as liquidity risk. In liquidity risk management, more than 61% of the assets are due daily and are immediately available. Consequently, no refinancing costs are applied. The liquidity V aR was kEUR 0 as of 31 December 2024 (previous year: kEUR 0). In order to initiate countermeasures immediately, daily liquidity forecasts are used to identify liquidity gaps at an early stage; these can arise from cash outflows on the customer side or from the securities business, among other things.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 86 flatexDEGIRO AG Efficient management of the liquidity reserves to be held and successive diversification of the available refinancing sources are pursued as part of liquidity planning. To limit the remaining liquidity risk (liquidity risk in the narrower sense), flatexDEGIRO AG pursues a conservative investment strategy in which client deposits with daily maturities are reinvested predominantly in short -term instruments, and there are su bstantial investments in ECB - eligible securities, which may be pledge for short -term funding through the central bank as needed. In addition to very conservative short -term minimum liquidity buffers/limits (daily, weekly, monthly liquidity bands) which mus t be maintained, management is also conducted by means of ongoing duration measurement across all relevant investments of flatexDEGIRO AG, which are within the average target term range of less than 24 months. Finally, flatexDEGIRO Bank AG carries out ongoing liquidity monitoring and appropriate financial planning / liquidity planning in the Group’s financial accounting department. The measures implemented, in combination with a “liquidity business continuity plan”, ensure a comfortable liquidity level with adequate reserves for the Group’s payment obligations, also and particularly in the case of unforeseen events such as unfavourable market developments or payment deferrals and client defaults. Around 61% of assets were due daily as of the reporting date (previous year: around 60%); capital was committed for an average of 57 days (previous year: 43 days). Control and limitation of operational and other risks flatexDEGIRO AG defines operational risk as the risk of loss due to human error, the inadequacy of internal processes and systems, and external events. Legal and reputational risks are also included in this category. flatexDEGIRO AG uses a multi -year time series of actually incurred losses for its operational risk measurement. These losses are categorised according to the type of damage, the cause of the loss, the time of occurrence, etc., and documented in a database. The operationa l risks are internally managed by assigning each loss case to a risk strategy (avoidance, reduction, transfer, etc.) and implementing defined measures. In addition to the standardised approach for Pillar I, an internal assessment method, which was redesigned in financial year 2024, is used internally to determine the amount of regulatory capital to be held for operational risk. The model quantifies the operation a l risk for Pillar II based on historical data and expert -based ex - ante scenarios using a Monte C arlo method (99.9% confidence level; one -year observation period). The total value for operational risks measured on the basis of the approach explained above amounts to kEUR 36,140 as of 31 December 2024 (previous year: kEUR 44,591). Selected operational and other risks Dependency on software and other EDP risks (ICT risks) For flatexDEGIRO AG, operational risk arises particularly from the dependency on IT infrastructure and associated services which is typical for banking operations. This also includes dependency on the flawless provision of services which have been outsourc ed to external service providers. The operational risks in IT can be divided into hardware, software and process risks. There are comprehensive EDP and online systems used Group-wide, which are essential for the proper conduct of business. The Group is highly dependent on these systems working without issues. Despite comprehensive measures for data backup and the bridging of system disruptions, malfunctions and/or complete failures of EDP and online systems may not be precluded. Deficiencies in data availability, errors or functional problems in the software used and/or server failures due to hardware or software flaws, accident, sabotage, phishing or other reasons, could also have a significant negative impact on the Group’s reputation or market position, o r lead to possible obligations to pay damages.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 87 flatexDEGIRO AG The wars in Ukraine and the Middle East do not have any adverse effects on dependency on service providers or in terms of cyber-attacks; permanent monitoring in these areas ensures that countermeasures can be taken at all times. Significant Group-wide EDP and IT investments are made to ensure, on the one hand, that the significantly larger expanded business volume can be executed accordingly and on the other hand, that sufficient safeguards against disruptions is provided. Legal risks flatexDEGIRO Group acts as a regulated provider of financial services in an environment with rapidly changing (regulatory) legal framework conditions. Legal violations can result in fines or litigation risks. flatexDEGIRO AG contains these legal risks by permanently monitoring the legal environment, having internal legal know -how and by resorting to external legal expertise if necessary. Outsourced processes flatexDEGIRO AG has set up outsourcing controlling, which aims to take stock of all relevant outsourcing contracts and initiates management activities as needed. All outsourcin g contracts are taken into account in the Group’s risk management system. Non -material outsourcing contracts are subject to lesser control intensity requirement than material outsourcing contracts. Service level agreements (SLAs) have been agreed as part of the concluded outsourcing contracts for all material outsourcing. Moreover, liability rules which allow a transfer of damages have also been agreed. Reputational risk The reputational risk for flatexDEGIRO AG is the risk of negative economic effects that result from the company‘s reputation being damaged. In principle the Group companies strive to ensure a high level of customer loyalty by having a good reputation, in order to gain a competitive advantage over their competitors. In addition to the immediate financial implications, many of the risks discussed above pose a risk that the Group’s reputation may be damaged, and that a decline in customer loyalty may result in financially adverse consequences for the Group. flatexDEGIRO AG puts particular emphasis on reputational risk in its strategic guidelines and continually uses its risk - controlling processes to monitor the relevant environment. Associated risk estimates are made as part of the estimates for the Group’s operational risk s. In order to limit its operational risks, flatexDEGIRO AG fundamentally promotes a risk culture which ensures that both the management and the other employees of flatexDEGIRO AG observe high ethical standards and a pronounced risk awareness in all relevant business processes. The mitigation of risks is also one of the key performance targets for all flatexDEGIRO AG managers within their respective areas of responsibility. In this context, each manager develops task -specific control processes and should ensure their ongoing application. Other risks Included in other risks at flatexDEGIRO AG are genera l business risks. General business risk exists due to the dependence on technical developments and customer behaviour. General business risks arise from changes in the framework conditions. These include, for example, the market environment, customer behaviour, and technolo gical progress. In 2024, a new model was designed to quantify the business risk, which calculates a value at risk (VaR) based on historica l data and expert-based ex -ante scenarios using a Monte Carlo
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 88 flatexDEGIRO AG method (99.9% confidence level; one -year observation period). The calculated value for the business risk based on the procedure above was kEUR 1,130 as of 31 December 2024. Technological developments and changing customer behaviour can significantly influence the market conditions for financial services. They may open up opportunities for flatexDEGIRO AG’s financial products, but they may also negatively impact demand for the Group’s products and services and thus reduce its financial success. flatexDEGIRO AG is paying particular attention to changes in the legal and regulatory environment, as well as to changes in customer behaviour and technological progress, and is constantly reviewing the resulting strategic implications. ESG risks are not an independent risk type in the definition of flatexDEGIRO, but rather consist of ESG risk factors, which impact existing or established risk types. An ESG materiality analysis was performed in this context as part of the risk inventory, with the result that the corresponding factors occur mainly for non -financial risks/operational risk. They were reflected for the first time as of 31 December 2024 as part of the calculation of risk capital requirements for non -financial risk/operational r isk and business risk. Overall risk position of the financial holding group As already mentioned, flatexDEGIRO’s risk -bearing capacit y concept is based on the dual management approach of a normative and an economic perspective. The latest ICAAP framework is designed to ensure that the Group’s capital adequacy is sufficient at all times, whic h infers compliance at all times with all Pillar 1 regulatory capital requirements and ancillary conditions in the normative perspective from the vantage point of a minimum three -year planning horizon. It also ensures its risk -bearing capacity at all times in the economic, present-value perspective from the vantage point of a rolling one-year horizon. flatexDEGIRO Bank AG assesses its economic risk -bearing capacity by comparing the risk potential of the main risk types with the economically calculated risk coverage potential. For the bank, compliance with the requirements is a strict secondary condition for the implemented risk management processes. Compliance with the free risk coverage capital (ICAAP ratio: ratio of PR/IC < 95%) is set as a strict secondary condition for furt her utilisation as part of the allocated limits for the material risk types. The allocation of the risk coverage funds and the amount of the limits as well as the upstream early warning thresholds for the individual risk types and the ICAAP as a whole define the risk appetite of the Group. The risk appetite is determined on the bas is of the business strategy, the strategic business planning and the risk inventory and is intended to ensure the consistency of the risk and income targets as well as appropriate capital and liquidity within the framework of the overall bank management. The free risk coverage capital amounts to kEUR 200,527 (previous year: kEUR 145,704) as of 31 December 2024 with an ICAAP ratio of 30.18% (previous year: 35.62%). No immediate risks that could jeopardise the continued existence of the Company, including with respect to potential concentration risks, were discernible at the time of preparation of this risk report. In addition, flatexDEGIRO AG has prepared a restructu ring plan according to simplified specifications. This is updated at regular intervals and as required. The total capital ratio (before approval of the consolidated financial statements) as of 31 December 2024 is 21.22% with liable capital of kEUR 222,212. The minimum regulatory requirements continue to be significantly exceeded in the reporting year. In the internal management (economic perspective), the risk - bearing capacity was assured at all times during the financial year.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 89 flatexDEGIRO AG The disclosure report of flatexDEGIRO AG pursuant to Section 26a KWG in conjunction with Part 8 CRR provides detailed documentation of the risk positions of the banking group. Management Board assessment of the overall risk situation The Group views the assessment of the overall risk situation in the form of a consolidated analysis of all material risk categories and individual risks. The overall risk was slightly lower in financial year 2024 compared to the previous year. Even if certain risk drivers had a lesser effect on the overall risk situation in 2024, they were replaced by other risk factors. The world economy recovered slightly after an initial shock due to the Ukraine war and corrections on globa l financial markets, although t here is still great uncertainty about the course of the war. The escalation of the conflict in the Middle East as well as uncertain developments in other regions also entail further risks for financial markets. In addition to the macroeconomic and geopolit ical risks mentioned, there are new risk drivers, above all relating to cyber-security, which cannot be ignored. Attacks on corporate IT systems and financial market infrastructure are increasing in all regions of the world; not only the total number, but also their severity. As a financial services business for private customers, it is particularly important for flatexDEGIRO to monitor these developments very closely. Against this background, flatexDEGIRO AG continues to be cautious in its risk assessment but is still convinced that neither any of the aforementioned individual risks nor the risks in the group jeopardise the going concern of the company as of the reporting date or at the time of preparation of the consolidated financial statements. Furthermore, flatexDEGIRO AG is confident that it will be able to continue to seize opportunities that arise in the future without having to expose itself to disproportionately high risks. Overall, the aim is to strike a healthy balance between risks and opportunities. Frankfurt am Main, 1 2 March 2025 flatexDEGIRO AG Oliver Behrens Dr. Benon Janos CEO, Chairman of the Management Board Deputy CEO & Chief Financial Officer, Member of the Management Board Stephan Simmang Christiane Strubel Chief Technology Officer, Member of the Management Board Chief Human Resources Officer, Member of the Management Board
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Consolidated Financial Statements Consolidated Balance Sheet 91 Consolidated Profit and Loss Statement 93 Consolidated Statement of Comprehensive Income 94 Consolidated Cash Flow Statement 95 Consolidated Statement of Changes in Equity 97 Notes to the Consolidated Financial Statements 102
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 91 flatexDEGIRO AG Consolidated Balance Sheet as of 31 December 2024 In kEUR Note 31/12/2024 31/12/2023 Assets 5,400,377 4,540,026 Non-current assets 652,060 568,939 Intangible assets 8 424,983 416,761 Goodwill 8, 9 180,649 180,649 Internally generated intangible assets 8 110,024 94,888 Customer relationships 8 90,330 98,457 Other intangible assets 8 43,980 42,767 Property, plant and equipment 10 55,364 51,827 Financial assets and other assets 3,305 4,366 Equity instruments measured at fair value through profit or loss (FVPL -EQ) 11 66,600 71,393 Financial assets measured at fair value through profit or loss (FVPL) 11 21,263 23,643 Financial assets measured at fair value through other comprehensive income (FVOCI) 11 79,655 - Loans to customers 11 889 948 Current assets 4,748,317 3,971,088 Trade receivables 11 25,106 21,661 Financial assets measured at fair value through profit or loss (FVPL) 11 28,762 31,909 Financial assets measured at fair value through other comprehensive income (FVOCI) 11 161,670 228,818 Loans to customers 11 1,193,437 939,993 Other receivables from banks 11 12,601 13,845 Cash and cash equivalents 11 3,312,969 2,710,701 Balances with central banks 11 2,913,917 2,398,380 Cash assets 11 16 27 Receivables from banks (payable on demand) 11 399,036 312,294 Other assets 11, 12 13,773 24,161 Non-current assets held for sale - -
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 92 flatexDEGIRO AG In kEUR Note 31/12/2024 31/12/2023 Liabilities and shareholders' equity 5,400,377 4,540,026 Equity 754,651 673,624 Subscribed capital 13 110,133 109,993 Additional paid -in-capital 13 233,394 230,972 Retained earnings 13 439,817 332,659 T reasury shares held measured at amortised cost 13 -28,692 - Shares of minority shareholders 13 - - Liabilities 4,645,726 3,866,403 Non-current liabilities 102,853 113,024 Liabilities owed to non -banks 14 36,220 45,508 Pension obligations 15 6,521 7,847 Provisions for long- term variable remuneration components 33 9,745 9,394 Deferred tax liabilities 27 50,368 50,275 Current liabilities 4,542,873 3,753,379 Liabilities owed to non -banks 14 13,813 - Tr a de payables 11 4,821 5,719 Liabilities owed to customers 16 4,295,546 3,605,869 Liabilities owed to banks 17 109,983 67,257 Tax provisions 20 22,224 28,627 Other provisions 19 40,396 23,103 Other liabilities 18 56,090 22,803
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 93 flatexDEGIRO AG Consolidated Profit and Loss Statement for the financial year from 1 January to 31 December 2024 In kEUR Note 2024 2023 Revenues 21 480,024 390,732 thereof Commission income 282,020 234,965 thereof Interest income 180,470 136,327 thereof Interest income from financial instruments 1 167,228 124,461 thereof Other operating income 17,534 19,440 Raw materials and consumables 22 69,304 69,475 Net revenue 410,720 321,257 Personnel expenses 23 115,900 97,419 Current personnel expenses 23 108,415 83,323 Personnel expenses for long -term variable remuneration components 23, 33 7,485 14,096 Marketing expenses 24 31,609 34,011 Other administrative expenses 25 60,733 49,474 EBITDA 202,477 140,352 Depreciation 8-10 45,785 36,004 thereof Impairment losses 35 5,571 1,605 EBIT 156,692 104,348 Financial result 26 -1,040 -1,332 EBT 155,652 103,016 Income tax expenses 27 44,117 31,157 Consolidated net profit 111,535 71,859 thereof Majority shareholders' share of consolidated net profit 111,535 71,859 thereof Minority shareholders' share of consolidated net profit - - Earnings per share (undiluted) in EUR 32 1.02 0.65 Earnings per share (diluted) in EUR 32 1.02 0.65 1 Interest income from financial instruments that are measured at amortised cost.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 94 flatexDEGIRO AG Consolidated Statement of Comprehensive Income for the financial year from 1 January to 31 December 2024 In kEUR Note 2024 2023 Consolidated net profit 111,535 71,859 Items of income and expenses recognised in equity that will not be reclassified to the profit and loss statement in future periods Pensions 15 -303 -3,207 Actuarial gains/losses 43 -2,926 Remeasurement of plan assets -285 -207 Reimbursement rights -61 -74 Items of income and expenses recognised in equity that may be reclassified to the profit and loss statement in future periods (recycling) Securities 11 831 1,880 Changes in fair value of financial assets measured at fair value through other comprehensive income (FVOCI with recycling) 831 1,880 Sum of other comprehensive income before deferred taxes 528 -1,327 Deferred taxes 27 -165 414 Pensions 95 1,000 Securities -259 -586 Sum of other comprehensive income after deferred taxes 363 -913 Total comprehensive income 111,898 70,946 thereof Majority shareholders' share of total comprehensive income 111,898 70,946 thereof Minority shareholders' share of total comprehensive income - -
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 95 flatexDEGIRO AG Consolidated Cash Flow Statement for the financial year from 1 January to 31 December 2024 In kEUR Note 2024 2023 Consolidated net profit 111,535 71,859 Depreciation and amortisation/appreciation on property, plant and equipment and intangible assets 8,10 40,214 32,024 Increase/decrease in financial assets and other assets 1 11 1,061 -1,321 Increase/decrease in trade receivables 11 -3,444 3,532 Increase/decrease in trade payables 11 -898 2,023 Increase/decrease in provisions, pension obligations and deferred taxes 15,19,27 9,656 -4,042 Increase/decrease in provision for long -term variable remuneration components 33 351 -26,754 Increase/decrease in other assets 2 11,12 10,388 -14,243 Cash flow from operating activities 168,862 63,079 Payments/proceeds for/from investments/disposals in/of intangible assets 8 -31,568 -32,239 Payments/proceeds for/from investments/disposals in/of property, plant and equipment 10 -8,873 -6,258 Payments/proceeds for/from investments/disposals in/of right -of-use assets 10 -7,745 -7,837 Proceeds from disposals of the consolidation group 3 - 200 Cash flow from investing activities -48,186 -46,135 Proceeds from equity contributions from shareholders of the parent company 140 320 Payments for dividends to shareholders of the parent company 13 -4,401 - Payments for the purchase of treasury shares 13 -28,692 - Increase/decrease in liabilities to non -banks 14,28 739 -714 Cash flow from financing activities -32,215 -394 Free cash flow prior to accounting changes to the banking business 88,461 16,550
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 96 flatexDEGIRO AG In kEUR Note 2024 2023 Increase/decrease in equity instruments measured at FVPL 11 4,793 - Increase/decrease in financial assets measured at FVPL 11 5,526 13,626 Increase/decrease in financial assets measured at FVOCI 11 -12,507 82,198 Increase/decrease in loans due to customers3 11 -253,385 -25,337 Increase/decrease in other receivables to banks 11 1,245 -1,694 Increase/decrease in liabilities to customers 16 689,677 404,379 Increase/decrease of liabilities to banks 17 42,726 -15,538 Increase/decrease in other financial liabilities 18 33,286 16,532 Cash flow from accounting changes to the banking business 511,361 474,166 Non-cash movements in equity 2,446 -7,027 Change in cash and cash equivalents 602,268 483,689 Cash and cash equivalents at the beginning of the period 2,710,701 2,227,012 Cash and cash equivalents at the end of the period 3,312,969 2,710,701 1 The item “Increase/decrease in financial investments and other assets” is presented separately in the reconciliation to the key figure ‘Cash flow from operating activities’ compared to the presentation in the previous year. The amounts were recognised under “Increase/decrease in other receivables, financial investments, and other assets” in the previous year. 2 The item “Increase/decrease in other assets” factors in the items “Increase/decrease in inventories” and “Increase/decrease i n other receivables’ shown separately in the reconciliation to the “Operating cash flow” key figure in the previous year. 3 The item “Increase/decrease in loans to customers” factors in the items “Increase/decrease in non -current loans to customers” and “Increase/decrease in current loans to customers” reported separately in the previous year in the presentation of the key figure “Cash flow from balance sheet changes”.
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 97 flatexDEGIRO AG Consolidated Statement of Changes in Equity for the financial year from 1 January to 31 December 2024 In kEUR Subscribed capital (see Note 13) Additional paid-in capital (see Note 13) Retained earnings (see Note 13) thereof Actuarial gains/losses (see Note 13) thereof Gains/losses from financial assets measured at fair value through other comprehensive income (see Note 13) T reasury shares held measured at amortised cost (see Note 13) Tot a l Shares of minority shareholders (see Note 13) Tot a l Equity As of 31/12/2022 and 01/01/2023 109,893 230,687 267,041 2,977 -2,923 - 607,621 653 608,272 Issue of shares 100 220 - - - - 320 - 320 Allocation to/ transfer from reserves - 65 -4,551 - - - -4,486 - -4,486 Changes in the scope of consolidation involving a change of control - - -777 - - - -777 -653 -1,430 Dividend payment - - - - - - - - - Other comprehensive income - - -913 -3,207 2,294 - -913 - -913 Consolidated net profit - - 71,859 - - - 71,859 - 71,859 As of 31/12/2023 and 01/01/2024 109,993 230,972 332,659 -230 -629 - 673,624 - 673,624 Issue of shares 140 195 - - - - 335 - 335 Allocation to/ transfer from reserves - 2,227 -339 - - - 1,888 - 1,888 Changes in the scope of consolidation involving a change of control - - - - - - - - - Dividend payment - - -4,401 - - - -4,401 - -4,401 Acquisition of treasury shares - - - - - -28,692 -28,692 - -28,692 Other comprehensive income - - 363 -208 571 - 363 - 363 Consolidated net profit - - 111,535 - - - 111,535 - 111,535 As of 31/12/2024 110,133 233,394 439,817 -438 -58 -28,692 754,651 - 754,651
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 98 flatexDEGIRO AG List of Abbreviations Para. Paragraph AG Aktiengesellschaft (public limited company) AGCM Italian competition authority AIF Alternative Investment Fund AktG Aktiengesetz (Stock Corporation Act) AT Austria approx. approximately BaFin Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority) GDP Gross domestic product BPO Business Process Outsourcing B2B Business-to-Business B .V. Dutch limited company i.e. id est e.g. exempli gratia CCI Client Check-in CCyB Capital Countercyclical Buffer CDS Credit Default Swap CEO Chief Executive Officer CFO Chief Financial Officer CGU Cash generating unit CH Swizerland CHF Swiss franc CHRO Chief Human Resources Officer COO Chief Operations Officer COSO Committee of Sponsoring Organizations CRM Customer Relationship Management CRR Capital Requirements Regulation CSRD Corporate Sustainability Reporting Directive CTO Chief Technology Officer CZ Czech Republik C&T Credit & T reasury DAX Deutscher Aktienindex (German stock index) DCF Discounted cash flow DE Germany DIW Berlin Deutsches Institut für Wirtschaftsforschung e. V. (the German Institute for Economic Research) DRS Deutsche Rechnungslegungs Standards (German Accounting Standards) EAD Exposure at Default
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 99 flatexDEGIRO AG EBIT Earnings before interest and tax EBITDA Earnings before interest, tax, depreciation and amortisation EBT Earnings before tax ECL Expected credit loss EDP Electronic data processing EQ Equity EL Expected loss EPS Earnings per share ERP Enterprise Resource Planning ESG Environmental, Social, Governance ESRS European Sustainability Reporting Standards ETF Exchange-traded fund ETP Exchange-traded products etc. et cetera EU European Union EUR euro ECB European Central Bank ES Spain FED Federal Reserve System FI Finland Debt ratio Ratio of debt to equity FSOF Frankfurt School of Finance and Management FVOCI Assets measured at fair value through other comprehensive income FVPL Assets measured at fair value through profit or loss FVPL-EQ Equity instruments measured at fair value through profit or loss FTX:CBS flatex Core Banking System FR France FX Foreign exchange GAAP Generally Accepted Accounting Principles GCM General Clearing Member GfBk Gesellschaft für Börsenkommunikation mbH GmbH Gesellschaft mit beschränkter Haftung (German limited company) GR Greece P&L Profit and loss account HANA High-performance ANalytic Appliance HCM Human Capital Management HGB Handelsgesetzbuch (German Commercial Code) HR Human Resources HRB Commercial register, section B
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 100 flatexDEGIRO AG IAS International Accounting Standards IASB International Accounting Standards Board IC Interpretations Committee ICAAP Internal Capital Adequacy Assessment Process ICT Information and Communication T echnology ifo Information und Forschung Institut IFRS International Financial Reporting Standards lfW Kiel Kiel Institut für Weltwirtschaft ICS Internal control system IE Irland ILAAP Internal Liquidity Adequacy Assessment Process IRRBB Interest Rate Risk in the Banking Book ISIN International Securities Identification Number IT Information technology IT Italy IW Köln Institut der deutschen Wirtschaft Köln e. V. KG Kommanditgesellschaft (German partnership) KGaA Kommanditgesellschaft auf Aktien (German partnership with shares) KPI Key Performance Indicator CRMT Credit risk mitigation techniques KWG German Banking Act LGD Loss Given Default Ltd. Limited LTECL Lifetime Expected Credit Loss LTPD Lifetime Probability of Default L.O.X. Limit Order System MaRisk Minimum requirements for risk management MDAX Middle-sized capitalization index mEUR million euros mbH mit beschränkter Haftung (German limited company) MiCAR Markets in Crypto-Assets Regulation MRR Monthly Risk Report MSCI Morgan Stanley Capital International MTF Multilateral trading facility NATO North Atlantic T reaty Organisation NL Netherlands No. Number Nr. Number OCI Other Comprehensive Income
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 101 flatexDEGIRO AG OCR Overall Capital Requirement UCITS Undertakings for collective investment in transferable securities OTC Over the Counter PD Probability of Default PEPP Pandemic Emergency Purchase Programme p. a. per annum PL Poland PT Portugal IL Impairment loss ROTE Return on T angible Equity RAIF Reserved Alternative Investment Fund RoU Right of Use SARs Stock Appreciation Rights SCHUFA Schutzgemeinschaft für Allgemeine Kreditsicherung(Organisation for general credit safety protection) SDAX Small-Cap-DAX SE Societas Europaea SICAV Investment company with variable capital SLA Service Level Agreement SPPI Solely Payments of Principal and Interest SREP Supervisory Review and Evaluation Process kEUR thousand euro TSCR Total SREP Capital Requirement UK United Kingdom USA United States of America USD US dollar UK United Kingdom Va R Value at Risk WKN Securities number WKO Wirtschaftskammer Österreich (Austrian economic chamber) WpHG Securities T rading Act ÖNB Österreichische Nationalbank (Austrian National Bank)
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 102 flatexDEGIRO AG Notes to the Consolidated Financial Statements as of 31 December 2024 Note 1 About the Group These consolidated financial statements a re the consolidated financial statements of flatexDEGIRO AG and its subsidiaries. flatexDEGIRO Aktiengesellschaft is headquartered in Frankfurt am Main, Germany, and is registered in the Frankfurt am Main commercial register under the company number HRB 103516. The registered business address is Omniturm, Große Gallusstr. 16-18, 60312 Frankfur t am Main , Germany. The registered no-par-value (registered) shares are traded in the SDAX index (prime standard, ISIN DE000FTG1111/WKN FTG111). The Group’s business activities are the supply of innovative technologies in the online brokerage market and financial sector, as well as the provision of financial services and IT services. flatexDEGIRO AG is the parent company of the flatexDEGIRO Group and the parent financial holding company in accordance with Section 2f (1) KWG. The consolidated financial statements are approved for publication by the Management Board. The consolidated financial statements may not be altered after publication. Note 2 Basis of presentation In preparing the consolidated financial statements as a listed company and as a company based in the European Union, flatexDEGIRO AG follows the rules of Article 4 of Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002, last amended by Regulation (EC) No. 297/2008 (OJ L97 of 9 April 2008, p. 62) and has implemented into national regulation by the German Federa l Government in the German Accounting Law Reform Act. According to Section 264d HGB, flatexDEGIRO AG is a company aligned with the capital markets, because it uses an organised market within the meaning of Section 2 (11) of the Securities Trading Act for its issued securities (shares). As a parent company it is obliged by Section 315e (1) in conjunction with Section 290 HGB to prepare its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). These consolidated financial statements of flatexDEGIRO AG are based on the International Financial Reporting Standards (IFRS) as published by the International Accounting Standards Board (IASB) and endorsed as European law by the Europea n Union (EU), and follow the supplementary provisions of commercial law applicable under Section 315e HGB. The consolidated financial statements of flatexDEGIRO AG are based on the assumption of a going concern. The presented net assets, financial position and financial performance as well as the presented cash flows of the Group correspond to the actual circumstances. The accounting and valuation methods applied in the previous year have been upheld, except for changes necessitated by new or amended standards. The declaration of compliance within the meaning of Section 161 German Stock Corporation Act (AktG) based on the German Corporate Governance Code as amended on 28 April 2022 was most recently updated and adopted by the Supervisory Board and the Management Board on 21 March 2024 and is publicly available on the flatexDEGIRO AG website at www.flatexdegiro.com/en/investo r- relations/corporat e-governan ce. flatexDEGIRO AG presents information in thousands or millions of the presentation currency units. The presentations in thousands and millions of units are commercially rounded. When calculating with rounded numbers, slight rounding differences may occur. The presentation currency is the euro.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 103 flatexDEGIRO AG Note 3 Scope of consolidation The consolidated financial statements comprise the financial statements of flatexDEGIRO AG and all companies controlled by it or its subsidiaries. Control exists when flatexDEGIRO AG has direct or indirect control over the potential subsidiary via voting rights or other rights, participates in positive or negative variable returns from the potential subsidiary and can influence such returns. Overview of flatexDEGIRO AG scope of consolidation as of 1 January 2023 — flatexDEGIRO AG, Frankfurt am Main (100%) — flatex Finanz GmbH, Frankfurt am Main (100%) — flatexDEGIRO Bank AG, Frankfurt am Main (100%) — Cryptoport GmbH, Frankfurt am Main (100%) — Xervices GmbH, Frankfurt am Main (100%) — financial.service.plus GmbH, Leipzig (72%) Changes in the scope of consolidation in 2023 flatexDEGIRO AG signed a share purchase agreement with PHOENIX FINANCE GmbH, Beucha, for financial. service.plus GmbH on 22 December 2023. The share purchase agreement states that the sale and transfer of a part (52% of share capital) of the majority share (72% of share capital) previously held by the parent in financial.service.plus GmbH is transferred to the buyer as of 31 December 2023. Due to its immateriality, this entity was not reported separately in the consolidated financial statements as of 31 December 2023. Overview of flatexDEGIRO AG scope of consolidation as of 31 December 2023/ 1 January 2024 — flatexDEGIRO AG, Frankfurt am Main (100 %) — flatex Finanz GmbH, Frankfurt am Main (100 %) — flatexDEGIRO Bank AG, Frankfurt am Main (100 %) — Cryptoport GmbH, Frankfurt am Main (100 %) — Xervices GmbH, Frankfurt am Main (100 %) There were no joint ventures as of 31 December 2023. There was one associate (financial.service.plus GmbH) but it is not consolidated using the equity method as of 31 December 2023 since it is not material. Changes in the scope of consolidation in 2023 There were no changes in the scope of consolidation in financial year 2024. Overview of flatexDEGIRO AG scope of consolidation as of 31 December 2024 — flatexDEGIRO AG, Frankfurt am Main (100%) — flatex Finanz GmbH, Frankfurt am Main (100%) — flatexDEGIRO Bank AG, Frankfurt am Main (100%) — Cryptoport GmbH, Frankfurt am Main (100%) — Xervices GmbH, Frankfurt am Main (100%) There were no joint ventures as of 31 December 202 4. There was one associate (financial.service.plus GmbH) but it is not consolidated using the equity method as of 31 December 2024 since it is not material. Consolidated financial statements of the largest group of companies flatexDEGIRO AG is preparing the consolidated financial statements for the largest scope of companies in the reporting year. The highest -level parent company of the flatexDEGIRO Group is flatexDEGIRO AG. In accordance with the statutory requirements, the consolidated financial statements are published in the company register as well as on the homepage of flatexDEGIRO AG.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 104 flatexDEGIRO AG Note 4 Climate risk In the 2020 financial year, the flatexDEGIRO Group analysed potential sustainability risks as part of a materiality analysis. Relevant environmental regulatory developments are also continuously monitored. The Group has not identified any material risks fo r its business model and does not currently expect any material effects of such risks on the business model of the flatexDEGIRO Group and on the presentation of its net assets, financial position and financial performance . For more information, please refe r to the non-financial report in the “Environment” section. Note 5 Accounting policies Business combinations and consolidation Business combinations are reported based on the provisions of IFRS 3. At initial consolidation, identifiable assets and liabilities are measured at their fair value at the time of acquisition. Shares of minority shareholders are recognised in proportion to their share of the fair value of assets and liabilities. Incidenta l acquisition costs and fees are directly recorded as an expense. If there is a remaining differential amount after offsetting, this is recorded as derivative goodwill. Negative goodwill is recognised in profit or loss in the year of acquisition. The results of acquired subsidiaries are included from the dat e of acquisition by the Group, i.e., from the date on which the Group was able to exercise control. Goodwill Positive goodwill arises if the purchase price of the equity participation exceeds the fair value of the identified assets less liabilities. It is subject to ad hoc and at least annual impairment testing, which validates the recoverability of goodwill. If recoverability no longer exists, an impairment loss is recognised. Otherwise, the carrying amount of the goodwill is taken over unchanged from the previous year. Internally generated intangible assets Development costs are capitalised if their amount can be reliably ascertained, if the product or process to which they pertain is realisable in technical and economic terms, and if the future economic benefit is probable. The initial capitalisation of these costs will be based on the assumption that such technical and economic feasibility has been established. In addition to the availability of sufficien t resources, there must be an intention within the Group to complete the project and use or sell the resu lting asset. The capitalised development costs include all individual and overhead costs directly attributable to the project. Once projects are completed, development costs are amortised over their useful life, starting at the time when economic benefits are generated. An annual impairment test is performed on internally generated intangible assets under development. Already completed assets are tested on an impairment trigger. The future benefit inflow is documented through appropriate business cases. The start of a development project may be based on basic research results or on a non -exclusive customer order, whereby the respective research effort must be strictly expensed.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 105 flatexDEGIRO AG Intangible assets acquired for consideration Purchased software, licences and industrial property rights are accounted for at their acquisition cost and amortised on a straight-line basis over their expected useful life as follows . — Technology and software: Straight-line amortisation over eight years. — Customer relationships: Straight -line amortisation over six, eight, 16 and 20 years. — Trademarks: Trademarks are generally amortised over ten years using the straight-line method. The DEGIRO brand, acquired for consideration, has a non -specific period of use. Intangible assets acquired for consideration are tested for impairment where this is indicated. No such indications were apparent in financial year 2024 . Intangible assets with indefinite useful lives are tested for possible impairment at least annually. Property, plant and equipment Property, plant and equipment which is subject to wear and tear and is used for more than one year is measured at amortised acquisition or manufacturing cost and depreciated on a straight- line basis over the expected useful life. Land is not depreciated on a scheduled basis. Buildings and other assets are depreciated on a straight-line basis for a maximum of ten years. Other plant and equipment is depreciated on a straight-line basis over the expected useful life of the respective asset, which is between t hree and five years for computer hardware and generally 13 years for office equipment. Maintenance and repair costs are recognised as expenses for the period. Where there are indications of impairment and the recoverable amount is lower than the amortised acquisition or manufacturing cost, the asset is written down to the recoverable amount. The recoverable amount is the higher amount of the value in use and the fair value less costs to sell. Leasing A lease is an agreement wherein the lessor, in return for a payment or series of payments, conveys to the lessee the right to use (right of use [RoU]) an asset for an agreed period of time. The right of use for property is up to ten years, the right of use for business and office equipment as well as vehicles is up to five years. As a result of IFRS 16, leases are recognised by the lessee in the balance sheet. Under the standard, an asset (the right of use of the leased asset) and a financial liability for rental or lease payments are recognised. The lease liability corresponds to the present value of the minimum lease payments. The only exceptions are for short -term and low - value leases. flatexDEGIRO AG used the exception options for low-value leases in the financial year. The companies of flatexDEGIRO AG only act as lessees in external relationships. Impairments The carrying amounts of property, plant and equipment and of intangible assets are examined for indications of impairment at the end of each reporting period. If any such indication exists, the recoverable amount of the asset is calculated in order that a potential impairment expense may be determined. If the recoverable amount cannot be calculated at the level of the individual asset, it is determin ed at the level of the cash -generating unit (CGU) to which the relevant asset has been allocated. It is distr ibuted on an appropriate and consistent basis to the individual CGUs or the smallest group of CGUs. In the case of an intangible asset with an indefinite useful life or an intangible asset not yet available for use, impairment testing is carried out at lea st annually and whenever there is indication of impairment (triggering events).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 106 flatexDEGIRO AG The derivative goodwill is not subject to scheduled depreciation, but it is tested for impairment on the basis of the recoverable amount of the CGU to which it is allocated. To do this, the goodwill acquired in the course of a business acquisition is allocated to each individual CGU which is likely to benefit from the synergies generated by the acquisition. The maximum size of a respective CGU correspond s to the operational segment that also reports to the primary decision- making body and is thereby linked to the internal reporting system. The impairment test is carried out at least once a year and additionally if there are indications that the CGU is impaired. There was an indication due to the wars in Ukraine and the Middle East as well as the political elections in Europe and the United States of America and the related economic effects. However, it was concluded qualitatively and quantitatively that th ere was no need for impairment. If that the carrying amount of the CGU to which the derivative goodwill has been allocated exceeds the recovera ble amount, the derivative goodwill must be written off in the amount of the determined difference. Once an impairment loss of a derivative goodwill has been recognised, it may not be reversed. Where the difference determined for the CGU exceeds the carrying amount of the derivative goodwill allocated to it, the carrying amounts of the assets allocated to the CGU are subjected to pro -rata impairments for a total of the remaining impairment amount. The recoverable amount is the higher of the value in use and the fair value. The value -in-use is determined by the management team’s planning for the CGU. The cash flows for the CGU in question are derived from such planning, taking into account the expect ed growth rates of the respective markets. They are discounted at the appropriate interest rate. The interest rate used for discounting reflects the cost of equity, i.e., the risk-free rate plus the market risk premium and the beta factor. As a listed comp any itself, flatexDEGIRO AG defines comparable companies as a peer group for determining the beta factor and sets these in correlation to the SDAX. Should the composition of the selected index prove to no longer be representative in the future, a corresponding adjustment will be mad e. Financial instruments A financial instrument is a contract that justifies a contractual right to receive payment or other financial assets from another party, or a contractual obligation to transfer financial assets to another party. Financial assets and liabilities are recognised from the point at which flatexDEGIRO AG becomes a contractual party to the financial instrument. The classification of financial assets depends on the business model (“h old to collect”, “h old to collect and sell”, “h eld for trading”) as well as the type of cash flows associated with the financial instrument. Based on these criteria, a decision is made as to whether the financial asset is to be measured at amortised acquisition cost or at fair value – either through profit or loss or through other comprehensive income. The classification and the value scale for the subsequent measurement take place upon receipt of the financial instrument. Regular market purchases or sales of financial assets are principally recognised or derecognised on the trade date. After being classified as “hold to collect”, “hold to collect and sell” or “h eld for trading” business models, and according to the type of cash flows associated with the financial instrument, the financial assets of flatexDEGIRO AG are allocated to the following categories, which are also considered as classes within the meaning of IFRS 9 . — Financial assets measured at amortised cost — Financial assets measured at fair value through other comprehensive income (FVOCI) — Financial assets measured at fair value through profit or loss (FVPL) — Financial equity instruments measured at fair value through profit or loss (FVPL -EQ) Financial assets measured at amortised cost The following financial instruments are assigned to the “hold to collect” business model and measured at amortised cost by the flatexDEGIRO AG.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 107 flatexDEGIRO AG — Trade receivables — Loans to customers (long and short -term) — Other receivables due to banks — Cash and cash equivalents — Other assets Financial instruments assigned to this category include only interest and principal payments on the principal amount outstanding as cash flows and are held to maturity. Financial assets measured at fair value through other comprehensive income (FVOCI) The bonds assigned to the “hold to collect and sell” business model are valued at fair value through other comprehensive income (FVOCI). At the time of purchase or acquisition, they are recognised at amortised acquisition cost includin g ancillary acquisition costs and subsequently measured at fair value. Changes in the valuation of the bond portfolio are recognised in other comprehensive income and only recognised through other comprehensive income upon sale or maturity (FVOCI with recycling). The cash flow s of this category of allocated financial instruments consist exclusively of interest and principal payments. Financial assets measured at fair value through profit or loss (FVPL) This item includes funds assigned to the “hold to collect” business model and a credit engagement. The cash flow condition consisting of interest and principal payments is not met for these funds or for the credit engagement, so the initial measurement is at procurement cost and the ancillary acquisition costs are recognised in profit or loss. Subsequent measurement is at fair value and recognised through profit or loss. Financial equity instruments measured at fair value through profit or loss (FVPL -EK) In general, e quity instruments are measured at fair value through profit or loss, regardless of whether they are held for trading. For financial instruments that are not held for trading, there is an option at the time of receipt to recognise them at fair value without affecting income. flatexDEGIRO AG measures shares in investment companies with variable capital (société d’ investissement à capital variable [SICAV]) at fair value through profit or loss. Measurement of financial liabilities Financial liabilities are measured at amortised cost or at fair value through profit or loss. In the financial year, the financial liabilities of flatexDEGIRO AG were still measured at amortised cost compared to the previous year. Impairment For financial instruments that are measured at amortised cost or at fair value (FVOCI with recycling) and for loan commitments, flatexDEGIRO AG recognises a provision for risk under the three-step approach in accordance with IFRS 9, taking expected losses into account (expected credit loss model). Upon receipt, credit risk stage 1 is established at the level expected next year (twelve -month horizon) (expected credit loss model [ECL]). Regular scenario analyses of credit risks are carried out as part of credit monitoring. If the credit rating has wor sened or if the credit default risk of the financial instrument has significantly increased since initial recognition , the financial instrument is reassigned to stage 2, and a loss allowance for full maturity credit losses is required (lifetim e ECL [LTECL]). If an objective indication of an expected loss can be observed, the financial instrument moves into stage 3, and the loss allowance is determined on an individual basis over the full lifetime of the financial instrument (LTECL). For risk provisions calculations at flatexDEGIRO AG, financial instruments with similar credit risks are grouped together or the credit risk is assessed individually. Hedge accounting flatexDEGIRO AG continues to make no use of the option of hedge accounting in the financial year , unchanged since the previous year. Measurement hierarchy levels The following hierarchy levels apply to the fair value . Level 1: The fair value of financial instruments traded in active markets (such as listed derivatives and equity instruments) is based on quoted market prices at the end of the reporting period. The quoted market price of the financial assets held by flatexDEGIRO AG corresponds to the current bid price. These instruments are classified as Level 1.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 108 flatexDEGIRO AG Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques that maximise the use of observable market data and rely as little as possible on company -specific estimates. If all significant input factors for assess ing the fair value of an instrument are observable, the instrument is classified as Level 2. Level 3: If one or more of the significant input factors are unobservable, the instrument is classified as Level 3. This applies to unlisted equity instruments. The fair value is determined based on the change in net assets between the current reporting date and the previous reporting date. Cash and cash equivalents The measurement of cash and cash equivalents is at the amortised cost . The cash and cash equivalents contain receivables due to banks (on demand), cash assets and balances with central banks . Pension obligations The Group assesses the claims arising from defined benefit plans by applying the projected unit credit method in accordance with the requirements of IAS 19. In determining the net present value of the future benefit entitlement for services already provide d, the Group takes into account future wage and pension increases. Actuarial gains and losses are recognised directly in other comprehensive income outside of profit or loss. Income Taxes Income taxes for the period comprises actual (current) taxes and deferred taxes. Tax es are recognised as income or expense and included in the profit or loss for the period, except to the extent that the tax arises from an item which is recognised in other comprehensive income. in which case the relevant taxes will be recognised in other comprehensive income as well. Current taxes are calculated on the basis of profit or loss realised in the financial year, which has been determined in accordance with applicable tax laws. Deferred taxes Deferred taxes are recognised for temporary differences arising between the carrying amounts of assets and liabilities in the consolidated financial statements and their tax base, as well as for tax loss carry forwards and tax credits. Deferred tax assets are recognised for tax -deductible temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their tax base, as well as for tax loss carry forwards and tax credits, if it is probable that they can be used. The recognition of deferred taxes relating to tax loss carry forwards is subject to a special rule. They may only be capitalised where it is highly likely that sufficient taxable profits will be available in the future to offset the losses. The valuation is generally based on future taxable income over a planning period of five years. The calculation of deferred tax amounts is made using the tax rate expected at the time of realisation. Deferred tax assets and liabilities will be offset where a legally enforceable right exists to offset actual tax assets against actual tax liabilities, and where the deferred tax assets and the deferred tax liabilities relate to income tax levied by one and the same tax authority on one and the same taxpayer or on a number of taxpayers, if the balance is to be settled on a net basis. Deferred taxes are reported in separate items on the balance sheet. Provisions A provision will be recognised where the Group is subject to a current de facto or legal obligation to third parties arisin g from a past event, the outflow of resources of economic benefit for the satisfaction of the obligation is likely, and it is possible to reliably estimate the extent of the obligation. Provisions with residual maturities of more than one year are discounted. Discounting is based on risk -free market interest rates. The settlement amount also includes the expected cost increases. Contingent liabilities If the criteria for forming a provision are not met, but the outflow of financial resources is likely, these obligations are reported in the notes to the consolidated financial statements. Liabilities are recognised as soon as the outflow of financial resources has become probable and the amount of the outflow of resources can be reliably estimated.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 109 flatexDEGIRO AG Liabilities Current liabilities are stated at the repayment or settlement amount. Non-current liabilities are carried at amortised acquisition cost in the balance sheet. Differences between the historica l costs and the repayment amount are taken into account using the effective interest method. Liabilities from lease obligations are recognised at their present value. Recognition of revenues The revenues from contracts with customers are recognised when the power of disposal has been transferred or the service has been provided in accordance with contractua l agreements. For the measurement of customer contracts, a five -step model is applied which applies to all contracts for the delivery of goods and services, with the exception of leases, insurance contracts and financial instruments in particular; it also regulates the type, amount and timing of the collection of income. The individual steps are as follows . — Step 1: Identify the contract(s) with a customer — Step 2: Identify the independent performance obligations — Step 3: Determine the transaction price — Step 4: Allocate the transaction price to the individual performance obligations — Step 5: Recognise revenue on fulfilment of the performance obligation If a contract contains several performance obligations, the transaction price is split between all performance obligation s. Generally, the transaction prices for the individu a l performance components result from the contractual provisions. If this is not the case, the transaction price will be assigned to all performance obligations based on the relative individual selling prices. If they are not directly observable, they are estimated using the expected -cost-plu s-a-margin approach. Revenues from longer-term contracts that are fulfilled over a specified period of time must be treated according to the input method. This states that the proceeds are realised in the amount of the achieved completion level. The stage of completion corresp onds to the ratio of incurred costs to expected total costs. This method was selected because the realisation of profits from the project phases corresponds to the actual conditions as closely as possible. Earnings per share The earnings per share figure is calculated by dividing the consolidated earnings of the Group attributable to the shareholders of the parent company by the weighted average number of share capital shares outstanding during each individual period.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 110 flatexDEGIRO AG Note 6 Changes in accounting policies: amended standards and interpretations Annual Improvements and new standards and interpretations adopted by the IASBB and IC In the course of Annual Improvement, the International Accounting Standards Board (IASB) makes small changes to existing standards. There is always a three-year review cycle. These changes are listed in tabular form together with the current status of the EU endorsement. In addition to the ongoing revision of standards and interpretations as part of the Annual Improvement project, new pronouncements are also issued on a regular basis. Presentation of new, but not yet mandatory standards, amendments and interpretations The following new or amended standards and interpretations have already been adopted by the IASB and IFRS Interpretations Committee (IC) but have not yet come into force or have not yet been adopted as European law. Significant new standards and interpreta tions are listed. The company has opted against early application of these standards and interpretations. New standards, interpretations and improvements Standard/ Interpretation Changes/ new regulation Date of application (EU) EU endorsement IAS 21 The Effects of Changes in Foreign Exchange Rates Lack of exchangeability Financial years that start on or after 01/01/2025 Ye s IFRS 9 Financial Instruments Classification and measurement of financial instruments - amendments to IFRS 9 and IFRS 7 Financial years that start on or after 01/01/2026 No Annual Improvements to IFRS Accounting Standards - Volume 11 Financial years that start on or after 01/01/2026 No IFRS 18 Presentation and Disclosure in Financial Statements The new standard will replace IAS 1 - Presentation of Financial Statements Financial years that start on or after 01/01/2027 No IFRS 19 Subsidiaries without Public Accountability Introduction of significant simplifications to the disclosure requirements for subsidiaries Financial years that start on or after 01/01/2027 No All of the above -mentioned standards, interpretations and amendments to existing standards and interpretations, insofar as their content is relevant, are not expected to be applied by flatexDEGIRO AG until the date of mandatory first - time application. No material effects are currently expected from first-time application.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 111 flatexDEGIRO AG Presentation of the new standards, amendments and interpretations applied in the current reporting year (2024) Changes to the following standards became mandatory for flatexDEGIRO AG for the first time in the 2024 financial year. Changes to IAS 1 “Non-current liabilities with covenants ” IAS 1 requires a company to classify a liability as current or non-current depending on the rights that exist at the end of the reporting period. The classification is not affected by the company’s expectations or by events after the balance sheet date. Credit covenants that a company is not required to honour until after the balance sheet date do not affect the classification of a liability as current or non -current at the balance sheet date. By contrast, conditions that a company must fulfil on or before the balance sheet date have an effect on the classification as current or non -current, even if the conditions are only assessed as such after the company’s balance sheet date. The new changes also introduce additional disclosu re requirements. For liabilities classified as non -current that are contingent on compliance with conditions within twelve months of the reporting date, information must be disclosed in the notes that enables recipients of the financial statements to understand the risk that the liabilities may becom e repayable within twelve months of the reporting date. Including. — Carrying amount of liabilities concerned, — Information about the existing conditions — Any facts and circumstances indicating that the company may have difficulty meeting the conditions. Changes to IFRS 16 “ Lease liability in a sale and leaseback transaction” The changes stipulate that the seller/lessee determines “lease payments” and “revised lease payments” in the subsequent measurement of the lease liability in a way that prevents recognition of a gain or loss in relation to the retained right of use. The change will primarily impact sale and leaseback transactions where the associated lease payments include variable lease payments that do not depend on an index or an interest rate. Changes to IAS 7 and IFRS 7 “Supplier financing agreements” The IAS 7 and IFRS 7 changes are related to the disclosure requirements for supplier financing arrangements “reverse factoring arrangements”. Reverse factoring arrangements are characterised by the fact that one or more financial service providers offer to pay amounts owed by a company to its suppliers and that the company agrees to pay the financial service providers at the same or a later date as the suppliers are paid, in accordance with the terms of the arrangements. These arrangements grant the company extended payment terms or the company’s suppliers early payment terms compared to the maturity date of the relevant invoice. The changes are intended to meet the information requirements of recipients of the financial statements with regard to the presentation of a company’s liabilities, cash flows and its liquidity risks in the case of so -called supplier finance arrangements. The new disc losure requirements include information on . — the conditions of supplier finance arrangements, — the carrying amounts of financial liabilities that are the subject of supplier finance arrangements and the balance sheet item in which these liabilities are recognised, — the carrying amount of financial liabilities for which suppliers have already received payments from financial service providers, — the range of maturities both for financial liabilities that are the subject of supplier finance arrangements and for comparable trade payables that are not the subject of such arrangements, — non-cash changes in the carrying amounts of the aforementioned financial liabilities, — access to supplier financing arrangements as a relevant factor in the disclosures on liquidity risk in accordance with IFRS 7.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 112 flatexDEGIRO AG Note 7 Estimates and assumptions The preparation of the consolidated financial statements in compliance with IFRS implies the adoption of assumptions and the use of estimates which have an impact on the amounts and disclosures of the assets and liabilities and/or revenues and expenses. Al l available information has been taken into account in this regard. The assumptions and estimates relate mostly to the stipulation of useful lives in a consistent manner throughout the Group, the determination of the recoverable amounts for impairment test ing of individual CGUs and the recognition and measurement of provisions. The current situation regarding interest rates on the financial markets and the resulting uncertainty in estimates are significant. This relates in particular to the amount of the recognised pension provisions. The effects of the wars in Ukraine and the Middle East are also of exceptional importance. The resulting estimation uncertainties relate in particular to the measurement of credit exposures and the recognition of risk provisions. As such, the actual values may differ from the estimates. New information is taken into account as soon as it becomes available. At the time of preparation of the consolidated financial statements, it is not assumed that there have been any significant changes to the assumptions and estimates other than those mentioned above. The impairment test for non -financial assets (in particula r goodwill, capitalised development costs and customer relationships) is based on the assumption regarding future cash flows during the planning period and, if necessary, beyond, as well as the discount rate to be used. The fair values of assets and liabilities assumed in the course of a business combination are determined using recognised measurement methods (e.g., the relief-from-royalty method or residual value method) to the extent that observable market values are not available. The estimation of useful life on which depreciation on depreciable fixed assets is based is generally founded on past experience and is reviewed regularly. Determining the recoverability of financial assets requires estimates of the amount and probability of occurrence of future events. The risk capacity analysis is based on the assumption of various scenarios, with the aim of limitin g estimation uncertainties where a material risk exists. The risk capacity analysis and related assumptions revealed no indication that a significant adjustment of the carryin g amounts will be required in the next financial year. The real- world stress test provided by the wars in Ukraine and the Middle East proved that our conservative lending policies are valid. In this context, we refer to the comments on financial risk management in Note 35. The accounting for and valuation of provisions requires an estimate of the amount and probability of occurrence of future events as well as estimates of the discount rate. These estimates are usually based on past experience or external reports. At flatexDEGIRO AG, the 2020 Stock Appreciation Rights Plan (SARs Plan 2020) is a share -based remuneration that is accounted for as a cash -settled plan in accordance with IFRS 2. A provision for this is recognised as an expense over the vesting period. The expense is recognized in personnel expense. The provision is measured using a suitable option pricin g model (Black-Scholes formula) and taking into account the expected earnings per share (EPS) at the projected exercise date. Other measurement assumptions, including share price, interest rate and vo latility were determined on the basis of publicly available market data as of the balance sheet date. In addition, a further share option programme was launched in the 2024 financial year, which is accounted for as a cash- settled plan in accordance with IFRS 2. As part of the 2024 share option programme, eligible board members and employees have the opportunity to receive one share or a cash settlement for each share option exercised. The expenses are recognised in per sonnel expenses. The option valuation is simulated on the basis of a Monte Carlo model for each subscription date. Each simulation analyses whether the final market value of the share has exceeded the exercise price per share option and whether the exercise hurdle has been reached during the reference period of three years. The calculation of deferred tax assets involves an estimate of the future taxable income and the date of realisation.
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 113 flatexDEGIRO AG Note 8 Intangible assets Development of intangible assets in the financial year In kEUR Acquisition/ production costs as of 01/01/2024 Additions Disposals Reclassifications Acquisition/ production costs as of 31/12/2024 Accumulated depreciation of at 31/12/2024 Carrying amount as of 31/12/2024 Depreciation in financial year 2024 Goodwill 183,362 - - - 183,362 2,712 180,649 - Internally generated intangible assets 132,891 26,048 - - 158,939 48,916 110,024 10,913 thereof Completed development costs 66,590 - - 34,615 101,205 48,308 52,898 10,913 thereof Current development costs 66,301 26,048 - -34,615 57,734 608 57,126 - Customer relationships 128,573 - - - 128,573 38,243 90,330 8,127 Other intangible assets 61,589 5,520 66 - 67,043 23,063 43,980 4,307 thereof Industrial property rights and similar rights 30,053 5,520 66 - 35,507 22,380 13,127 4,237 thereof Trademarks 31,536 - - - 31,536 683 30,854 70 Advance payments - - - - - - 0 - Intangible assets 506,415 31,568 66 - 537,917 112,934 424,983 23,346
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 114 flatexDEGIRO AG Development of intangible assets in the financial year In kEUR Acquisition/ production costs as of 01/01/2023 Additions Disposals Reclassifications Acquisition/ production costs as of 31/12/2023 Accumulated depreciation as of 31/12/2023 Carrying amount as of 31/12/2023 Depreciation in financial year 2023 Goodwill 183,362 - - - 183,362 2,712 180,649 438 Internally generated intangible assets 107,704 27,988 2,801 - 132,891 38,003 94,888 7,109 thereof Completed development costs 59,104 - 2,801 10,287 66,590 37,395 29,195 7,109 thereof Current development costs 48,600 27,988 - -10,287 66,301 608 65,693 - Customer relationships 128,776 - 203 - 128,573 30,117 98,457 8,127 Other intangible assets 56,851 5,941 1,203 - 61,589 18,823 42,766 3,142 thereof Industrial property rights and similar rights 25,315 5,941 1,203 - 30,053 18,210 11,843 3,072 thereof Trademarks 31,536 - - - 31,536 613 30,923 70 Advance payments 165 - 165 - - - - - Intangible assets 476,859 33,929 4,372 - 506,415 89,655 416,761 18,816
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 115 flatexDEGIRO AG Apart from goodwill, current development costs and the trademark rights acquired as part of the acquisition of DeGiro B. V., there are no intangible assets with indefinite useful lives. Its reach in 15 countries and the continued use of the DEGIRO registered trademark by flatexDEGIRO AG means that its useful life is indefinite. Individual material intangible assets In kEUR Asset Position Carrying amount 31/12/2024 Carrying amount 31/12/2023 Remaining amortisation Core Banking System (FTX:CBS) Capitalised development cost* 90,310 75,633 1 to 8 years Customer relationships (DEGIRO) Customer relationships 87,245 94,777 12 years Customer relationships (V i Tr a de) Customer relationships 1,896 2,081 11 years Customer relationships (factoring.plus) Customer relationships 212 466 1 year Customer relationships (Bank) Customer relationships 977 1,133 7 years * These are completed and ongoing development costs. Intangible assets with a definable useful life are stated at their acquisition or manufacturing cost, less accumulated depreciation and impairments; amortisation of intangible assets is recognised in the consolidated profit and loss statement under the line item “ Depreciation”. Depreciation occurs on a straight-line basis. Goodwill and capitalised development costs and customer relationships are subject to an annual impairment testing. The main driver of current development costs is the multi - year development project FTX:CBS, where a new technological base will enable the full integration of DEGIRO and the migration of flatex. The first significant partial completions were realised in the financial year. Additiona l important parts are expected to be completed within the next two years. No significant personnel expenses were invested in research during the financial year, as in the previous year.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 116 flatexDEGIRO AG Note 9 Impairment of derivative goodwill Cash-generating units The goodwill recognised in the consolidated balance sheet includes acquired derivative goodwill from previous business combinations. The goodwill has an indefinite useful life and so is not amortised. However, it is tested for impairment on the basis of the recoverable amount for the cash generating unit to which it is allocated (impairment only approach). Due to the constant presentation of the segments corresponding to the “flatex” and “DEGIRO” brands compared to the previous year 2023, the cash -generating units have not changed. The “flatex” CGU comprises the companies flatexDEGIRO Bank AG and flatexDEGIR O Bank AG Austria. The “DEGIRO” CGU comprises the branches flatexDEGIRO Bank Dutch Branch, flatexDEGIRO Bank Bulgarian Branch, Stichting DEGIRO, Stichting DEGIRO II and Stichting DEGIRO IIb. The other companies are broken down into the two CGUs “flatex” an d “DEGIRO” as part of the impairment test, assuming a full Group allocation. The goodwill from the acquisition of the shares in DEGIRO B.V. is recognised in the “DEGIRO” CGU. The goodwill from the acquisition of the shares in factoring.plus GmbH and XCOM AG is recognised in the “flatex” CGU. Testing for impairment of goodwill The Group uses a discounted cash flow method to test goodwill for impairment on a regular basis at the end of each financial year and also if there are indications of an impairment. In the planning assumptions for the DCF method to determine the recoverable amount for the CGU the Group includes increasing competitive pressure and the new strategy for the CGU. The cash flow forecasts are based on the detailed five -yea r budget approved by management. The after -tax discount factor applied to the cash flow forecast is based on the cost of equity. Any cash flows expected after the detailed four-yea r budget period are calculated using a growth rate (perpetuity). This growth rate is the long -term average growth rate for the fintech sector and so reflects expectations for sector growth. Both past values and forecast future values, i.e. market developments expected in fu ture, are used in the cash flow forecasts. Furthermore, the growth of business activities is taken into account for the forecast. The model takes planned dividend distributions into account at the level of cash -generating units (free cash flow to equity [FCF] after taxes). Basic assumptions for calculating the recoverable amount In estimating the value -in-use of the CGU, there are estimation uncertainties affecting the underlying assumptions, in particular with respect to . — the discount factor (interest rates) — the market shares during the reporting period — the growth rate used as a basis for extrapolating cash flow forecasts beyond the budget pe riod — Business planning — Cash flow forecast Discount rates: The discount rates reflect current market assessments of the specific risks attributable to the CGU. The discount rate is estimated based on the cost of equity. The interest rate is further adjusted for expected market risks attributable to a CGU which have not already been reflected in the future cash flow estimates. Assumptions about market shares: Assumptions about market share correspond to the estimate of the growth rate. They therefore reflect management’s view of how a CGU positions itself relative to other competitors during the budget period. Estimated growth rates: Growth rates are based on published industry-specific market research and are conservative assumptions. No events occurred in financial year 2024 that would have triggered an additional impairment test for the two CGUs “flatex” and “DEGIRO”. Impairment testing of the derivative goodwill for the two CGUs, “flatex” and “DEGIRO”, as of 31 December 2024 and 31 December 2023 did not reveal any impairment.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 117 flatexDEGIRO AG The carrying amount of the “flatex” CGU determined in the course of impairment testing as of 31 December 2024 is kEUR 236,587 (previous year: kEUR 427,805). The recoverable amount for this CGU as of 31 December 2024 is kEUR 527,353 (previous year: kEUR 984,475). The goodwill for this CGU as of 31 December 2024 is kEUR 34,280 (previous year: kEUR 34,280). The carrying amount of the “DEGIRO” CGU determined in the course of impairment testing as of 31 December 2024 is kEUR 365,463 (previous year: kEUR 443,057). The recoverable amount for this CGU as of 31 December 2024 is kEUR 1,189,999 (previous year: kEUR 632,056). The goodwill for this CGU as of 31 December 202 4 is kEUR 146,807 (previous year: kEUR 146,807). The after-tax discount rate used for the cash flow forecasts for the “flatex” CGU as well as the “DEGIRO” CGU as of 31 December 2024 is 9.2% (previous year: 10.7%). The long - term growth rate is 1.5% (previous year: 1.5%). The iteratively derived pre-tax interest rate for “flatex” CGU is 12.8% and 12.7% for the “DEGIRO” CGU. Sensitivity of assumptions Management believes that no reasonably practicable change in any of the basic assumptions used to determine the respective recoverable amounts of the “flatex” CGU and the “DEGIRO” CGU could cause the carrying amount of both CGUs to materially exceed their recoverable amount. The recoverable amount of a CGU measured using a discounted cash flow method is sensitive to the assumptions made, particularly the estimate of future cash flows and the rate used to discount them. For the “flatex” CGU an increase in the cost of equity to 15 .20% (cet. par.) or a decline in the free cash flow to equity of 55.14% (cet. par.) would result in the carrying amount of goodwill for the “flatex” CGU exceeding its recoverable amount as of 31 December 2024. For the “DEGIRO” CGU an increase in the cost of equity to 18.87% (cet. par.) or a decline in the free cash flow to equity of 69.29% (cet. par.) would result in the carrying amount of goodwill for the “DEGIRO” CGU exceeding its recovera ble amount as of 31 December 2024. The management considers the above scenarios to be extremely unlikely based on reasonable judgement .
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 118 flatexDEGIRO AG Note 10 Property, plant and equipment Development of property, plant and equipment in the financial year In kEUR Acquisition/ production costs as of 01/01/2024 Additions Disposals Acquisition/ production costs as of 31/12/2024 Accumulated depreciation as of 31/12/2024 Carrying amount as of 31/12/2024 Depreciation in financial year 2024 Land and buildings, including buildings on third-party land 5,605 712 - 6,317 4,897 1,420 360 thereof Assets held for sale in accordance with IFRS 5 - - - - - - - Other plant, business and office equipment 99,690 18,813 7,656 110,848 56,905 53,943 16,508 thereof Assets held for sale in accordance with IFRS 5 - - - - - - - Property, plant and equipment 105,295 19,525 7,656 117,165 61,802 55,364 16,868 There were no impairment losses in 2024 financial year (previous year: kEUR 0). Reversals of impairment losses were not recognised in financial year 2024, nor financial year 2023. No property, plant and equipment has been pledged as collateral. The increase in property, plant and equipment is mainly due to additional IT hardware. Carrying amount of right-of-use assets recognised in property, plant and equipment In kEUR 31/12/2024 31/12/2023 RoU for real estate 23,414 27,343 RoU for business and office equipment 13,028 6,776 RoU for vehicles 1,365 1,467 Tot a l 37,806 35,586
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 119 flatexDEGIRO AG Additions to right-of-use assets In kEUR 2024 2023 Additions to RoU for real estate 223 4,849 Additions to RoU for business and office equipment 10,101 4,704 Additions to RoU for vehicles 1,207 1,905 Tot a l 11,531 11,459 Amortisation of right-of-use assets by asset class In kEUR 2024 2023 RoU for real estate 5,193 4,882 RoU for business and office equipment 3,534 1,933 RoU for vehicles 1,305 1,168 Tot a l 10,032 7,983 Development of property, plant and equipment in the previous year In kEUR Acquisition/ production costs as of 01/01/2023 Additions Disposals Acquisition/ production costs as of 31/12/2023 Accumulated depreciation as of 31/12/2023 Carrying amount as of 31/12/2023 Depreciation in financial year 2023 Land and buildings, including buildings on third -party land 5,057 577 29 5,605 4,536 1,068 392 thereof Assets held for sale in accordance with IFRS 5 29 - 29 - - - - Other plant, business and office equipment 88,007 17,284 5,601 99,690 48,931 50,759 12,816 thereof Assets held for sale in accordance with IFRS 5 604 11 615 - - - - Property, plant and equipment 93,064 17,861 5,630 105,295 53,467 51,827 13,208
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 120 flatexDEGIRO AG Note 11 Financial instruments The following table presents the carrying amount and the fair values (see Note 5 “Accounting Policies”) of the individu a l financial assets and liabilities depending on the nature of the business model and measurement category. The main part of the receivables and liabilities has a maturity of less than one year, so there is no material difference between the carrying amount and fair value. Overview of financial instruments In kEUR 31/12/2024 31/12/2023 Business model "Hold to collect" Amortised cost Trade receivables 25,106 21,661 Other receivables 13,183 23,769 Loans to customers1 1,194,326 940,942 Other receivables from banks 12,601 13,845 Cash and cash equivalents 3,312,969 2,710,701 Financial assets measured at fair value through profit or loss (FVPL) 28,762 31,909 Business model "Hold to collect and sell" Financial assets measured at fair value through other comprehensive income (FVOCI) 241,325 228,818 Financial assets measured at fair value through profit or loss (FVPL) 21,263 23,643 Equity instruments not held for trading Equity instruments measured at fair value through profit or loss (FVPL -EQ) 66,600 71,393 Financial liabilities Financial liabilities measures at amortised cost (including trade payables) 4,516,473 3,747,157 1 The items “Non-current loans to customers” and “Current loans to customers” listed in the previous year are summarised in the item ‘Loans to customers’.
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 121 flatexDEGIRO AG Financial instruments by measurement hierarchy level The following table summarises the financial instruments measured at amortised cost and at fair value in accordance with their measurement hierarchy levels (Levels 1 –3). There were no financial instruments at Level 2 of the measurement hierarchy as of the reporting date. Financial instruments by measurement hierarchy level s In kEUR Level 1 Level 2 Level 3 31/12/2024 31/12/2023 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Business model “Hold to collect” Amortised cost Trade receivables - - - - 25,106 21,661 Other receivables - - - - 13,183 23,769 Loans to customers1 - - - - 1,194,326 940,941 Other receivables from banks - - - - 12,601 13,845 Cash and cash equivalents 3,312,969 2,710,701 - - - - Financial assets measured at fair value through profit or loss (FVPL) - - - - 28,762 31,909 Business model "Hold to collect and sell" Financial assets measured at fair value through other comprehensive income (FVOCI) 241,325 228,818 - - - - Financial assets measured at fair value through profit or loss (FVPL) - - - - 21,263 23,643 Equity instruments without trading intent Equity instruments measured at fair value through profit or loss (FVPL -EQ) - - - - 66,600 71,393 Financial liabilities Financial liabilities measured at amortised cost (including trade payables) - - - - 4,516,473 3,747,157 1The items “Non-current loans due to customers” and “Current loans due to customers” listed in the previous year are summarised in the item “Loans to customers”.
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 122 flatexDEGIRO AG Reconciliation for financial instruments For financial instruments categorised in level 3 of the measurement hierarchy and measured at fair value as of the reporting date, the reconciliation for financial year 2024 is as follows. Reconciliation for financial instruments in the financial year In kEUR Business model Opening balance sheet amount 01/01/2024 Profit (P&L) Loss (P&L Result increase (other comprehensive income) Result reduction (other comprehensive income) Purchases Sales Equalisations Closing balance amount 31/12/2024 Financial assets at fair value through profit or loss (FVPL) Hold to collect 31,909 2,656 4,773 - 1,029 - - - 28,762 Financial assets at fair value through profit or loss (FVPL) Hold to collect and sell 23,643 420 1,250 - - - - 1,550 21,263 Equity instruments measured at fair value through profit or loss (FVPL-EQ) Equity instruments without trading intent 71,393 601 4,464 - - - - 930 66,600 Tot a l 126,945 3,677 10,487 - 1,029 - - 2,480 116,625
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 123 flatexDEGIRO AG The following reconciliation for the previous year 2023 was produced f or financial instruments categorised in level 3 of the measurement hierarchy and measured at fair value as of the of previous year’s reporting date. Reconciliation for financial instruments in the previous year In kEUR Business model Opening balance sheet amount 01/01/2023 Profit (P&L) Loss (P&L Result increase (other comprehensiv e income) Result reduction (other comprehensiv e income) Purchases Sales Equalisation s Closing balance amount 31/12/2023 Financial assets at fair value through profit or loss (FVPL) Hold to collect 29,898 4,386 2,375 - - - - - 31,909 Financial assets at fair value through profit or loss (FVPL) Hold to collect and sell 28,729 249 3,535 - - - - 1,800 23,643 Equity instruments measured at fair value through profit or loss (FVPL - EQ) Equity instruments without trading intent 81,943 707 6,368 - 1,586 - - 3,303 71,393 Tot a l 140,570 5,343 12,279 - 1,586 - - 5,103 126,945 There were no reclassifications from Level 3 to Levels 1 or 2 in financial year 2024 or in the previous year 2023.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 124 flatexDEGIRO AG Cash and cash equivalents Overview of cash and cash equivalents In kEUR 31/12/2024 31/12/2023 Cash assets 16 27 Balances with central banks 2,913,917 2,398,380 Receivables from banks (payable on demand) 399,036 312,294 Tot a l 3,312,969 2,710,701 The cash and cash equivalents amount in the cash flow statement correspond to the relevant amount in the balance sheet. In the 2024 financial year, there were no material restrictions regarding cash and cash equivalents. Loans to customers Loans due to customers mainly comprise securities -ba cked loans such as margin loans, flatex -flex and Lombard loans. Due to the increase in the loan book, loans due to customers rose to a total of kEUR 1,194,326 (previous year: kEUR 940,942). The increase is due to securities-backed loans particularly margin loans, as well as the strategic focus in the lending unit and the resulting reduction in other financing. Other receivables from banks Other receivables due to banks in amount of kEUR 12,60 1 (previous year: kEUR 13,845) essentially comprise the receivables from security deposits with cooperation banks in the amount of kEUR 11,510 (previous year: kEUR 11,510). The decrease in other receivables from banks is due to the reduction in settlement of securities and payment transactions with cooperation banks from kEUR 1,253 to kEUR 0. Financial assets measured at fair value through profit or loss (FVPL) and equity instruments (FVPL-EQ) As of the reporting date there were current assets measured at fair value through profit or loss in the amount of kEUR 28,762 (previous year: kEUR 31,909) and non -curren t financial assets measured at fair value through profit or loss in the amount of kEUR 21,263 (previous year: kEUR 23,643). Financial assets measured at fair value through profit or loss in the amount of kEUR 50,025 (previous year: kEUR 55,552) mainly consist of a credit engagement in the amount of kEUR 28,762 (previous year: kEUR 31,909), and shares in a real estate fund in the amount of kEUR 20,995 (previous year: kEUR 21,627), as well shares in a football fund in the amount of kEUR 79 (previous year: kEUR 1,827). The change mainl y results from changes in the market value of the real estate fund in the amount of kEUR 3,146 and the re-transfer of shares in the football fund totalling kEUR 1,550 as well as changes in market value. Both funds are alternative investment funds (“AIFs”). The equity instruments measured at fair value through profit or loss in the amount of kEUR 66,600 (previous year: kEUR 71,393) relate to shares in residential and infrastructu re funds structured in the corporate form of a SICAV. The change in the residential investment fund results from changes to market value in the amount of kEUR 3,294. The change in the infrastructure f und results partly from a capital call in the amount of kEUR 931 and partly from market value changes in the amount of kEUR 569.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 125 flatexDEGIRO AG The nature and scope of the shares in non -consolida ted structured entities as well as the associated risks and possible changes are shown in the following table. Overview of shares in non -consolidated structured entities In kEUR Tota l managed assets Share Fair value (carrying amount) Share Nominal value (Maximum exposure) Comparison Income within the financial year Potential loss risk Loss type FG Wohninvest Deutschland S.C.S. SICAV-SF Type: Real estate fund 734,630 52,216 58,591 -6,375 1,662 72 Counterparty default risk FG Wohnen Deutschland Type: Real estate fund 91,344 20,995 25,000 -4,005 452 216 Counterparty default risk Fidelio KA Infrast. Debt Fund Europe I - RAIF SICAV T ype: Infrastructure fund 249,005 14,384 14,567 -183 782 691 Counterparty default risk In order to counter any risk exposure in business activities, flatexDEGIRO AG updates its risk inventory on a regular basis, and if events require it to do so. With respect to the Alternative Investment Funds (“AIFs”) specified above, these comprise the co unterparty default risk. The resulting potential loss risk is determined by a VaR-based credit portfolio model with a 99% confidence level on a look - through basis for all the individual positions in the fund. The FG Wohninvest Deutschland S.C.S. SICAV -SF fund invests in residential real estate portfolios in Germany in the mid-range rental price segment that offer attractive rental income prospects and sustainable potential for appreciation. The FG Wohnen Deutschland – Fokus ESG fund invests in a new-build project in Dusseldorf, Germany. The investmen t goal is achieving appropriate returns and medium - to long- term capital growth. The Fidelio KA Infrast. Fund Debt Fund Europe I – RAIF SICAV fund invests in economic infrastructure projects in Europe and has stable, long-term dividend distributions. The DS Score Capital Football Finance Funds Nr. 1 Fund is used to invest in football portfolios of European premier leagues. This fund’s focus is on the acquisition of individual receivables as well as lending to football companies. In particular, the goal is to generate stable earnings.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 126 flatexDEGIRO AG Financial assets measured at f air value through other comprehensive income (FVOCI) The financial assets measured at fair value through other comprehensive income include public -issuer bonds in the amount of kEUR 24 1,325 (previous year: kEUR 228,818). The financial instruments designated under these items are partly held for the purpose of liquidity management. Because of the securities held as collateral they are indirectly related to the Group’s operating activities and are presented in current and non-current assets. Amounts recognised in other comprehensive income (OCI) For the financial assets and equity instruments measured at fair value through other comprehensive income, the followin g amounts were recognised in other comprehensive income (OCI). Balances recognised in other comprehensive income (OCI) In kEUR 31/12/2024 31/12/2023 Financial instruments recognised in other comprehensive income (FVOCI with recycling) 1,186 355 Equity instruments recognised in other comprehensive income (FVOCI without recycling) 287 287 Tot a l 1,473 642 It is possible to designate the equity instruments held that are not intended for trading as “at fair value through changes in value in other comprehensive income (OCI)”. As the shares and the fund units held are strategic investments, there is no intention to trade and the FVOCI option for equity instruments has been exercised. The debt instruments held (bonds) are classified and valued “at fair value with value changes in other comprehensive income (FVOCI)” because the financial assets are assigned to a portfolio held in the “hold to collect and sell” business model and whose contractual cash flows meet the SPPI criterion. Financial instruments that are recognised at fair value Regular or recurrent basis fair value measurements are carried out at flatexDEGIRO AG for selected financial instruments on. Fair value for the financial instruments assigned to one of these categories is measured on the basis of quoted prices in active markets to which the entity has access on the measurement date (Level 1 of the fair value hierarchy defined in IFRS 13). This concerns fixed -income securities and shares. The fair value of financial instruments listed in active markets accessible to the Group is measured on the basis of observable quoted market prices to the extent that these represent prices used in regular and current transaction s (Level 2 of the fair val ue hierarchy) and is to be used preferentially as the fair value on the measurement date (market to market). The assets at fair value through profit or loss comprise shares in SICAV, a football fund and the FG Wohnen Deutschland fund, as well as one credit engagement. The assets are not traded on an active market. Neither are there any relevant measurement inputs that can be derived from market parameters. The measurement is based on level 3 input factors as defined in IFRS 13. The shares in SICAV companies and the football fund are determined using a net asset value method. The net asset value is used to determin e the purchase or redemption amounts. The fair value of the credit engagement is measured using a present value method in accordance with IFRS 13. Various scenarios were used to estimate future cash flows , which were discounted for different redemption dates. The measurement assumptions – future interest rate, potential measurement discount, cash flow - per scenario and the respective probabilities of occurrence were determined on
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 127 flatexDEGIRO AG the reporting date. The resulting weighted fair value as of the reporting date was kEUR 28,762 (previous year: kEUR 31,909), which resulted in a depreciation of the loan engagement by kEUR 3,146. Sensitivity of assumptions Management believes that no reasonably feasible change to any of the basic assumptions used to determine the respective measurement would cause material changes to the amount of the engagement. The recoverable amounts in the respective scenarios range from kEUR 28,803 to kEUR 24,758. Fair value of financial instruments that are not recognised at fair value The disclosure of fair values is only required for financial instruments that are not already accounted for at fair value. A fair value that deviates from the carrying amount can occur, especially with fixed-rate financial instruments in the event of a significant change in interest rates. The impact of a change in the market interest rate increases with the duration of the residual maturities of the business. They include the financial instruments listed in the following table. Overview of financial instruments that are not recognised at fair value In kEUR Carrying amount 31/12/2024 Fair value 31/12/2024 Carrying amount 31/12/2023 Fair value 31/12/2023 Assets Cash assets and balances with central banks 2,913,933 2,913,933 2,398,407 2,398,407 Loans to customers 1,194,326 1,194,326 940,942 892,062 Receivables from banks (payable on demand) 399,036 399,036 312,294 312,294 Other receivables 13,183 13,183 23,769 23,769 Trade receivables 25,106 25,106 21,661 21,661 Receivables due to banks 12,601 12,601 13,845 13,845 Tot a l 4,558,185 4,558,185 3,710,918 3,662,038 Liabilities and shareholders' equity Liabilities owed to customers 4,295,546 4,295,546 3,605,869 3,605,869 Liabilities owed to banks 109,983 109,983 67,257 67,257 Non-current liabilities owed to non -banks 36,220 36,220 45,508 45,508 Other liabilities 56,090 56,090 22,803 22,803 T rade payables 4,821 4,821 5,719 5,719 Tot a l 4,502,660 4,502,660 3,747,157 3,747,157
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 128 flatexDEGIRO AG For financial instruments that cannot be recognised at fair value in the balance sheet, fair values must also be disclosed in accordance with IFRS 7, the valuation method of which is presented below. For longer-term financial instruments in these categories the fair value is measured by discounting the contractual cash flows using discount rates that could have been obtained for assets with similar maturities and default risks. In the case of liabilities, interest rates are used at which corresponding debt with similar maturities could have been raised on the reporting date. The fair value is measured using DCF methods, with parameters for credit risks, interest rate risk, exchange rate risk, estimated default rates and the amounts of loss on default. The parameters credit risk, default risk and loss on default are determined and continuously updated using available information whenever available and suitable. Collateral held flatexDEGIRO AG does not hold any financial or non -financial collateral as defined in IFRS 7.15. Collateral granted The Group has granted collateral with the clearing and depositary agents of flatexDEGIRO Bank AG for the processing of the bank’s financial commission business . The collateral is largely provided in the form of deposited securities. The granted collateral amounted to kEUR 219,044 as of 31 December 2024 (previous year: kEUR 205,814) and is largely due to higher trading volumes in 2024 financial year. The material transactions and their underlying contractual terms are as follows. — Securities trading business on the Eurex exchange accounts for a significant portion of the total amount. This means that securities have to be deposited both for the clearing fund and for margin collateral. The clearing fund, which amounted to kEUR 5,092 as of 31 December 2024 (previous year: kEUR 5,204) is the minimum collateral that Eurex can call if a clearing member defaults. The amount of margin collateral (31 Dec ember 2024: kEUR 26,668; previous year: kEUR 14,571) depends largely on the transaction volume and the risk content associated with the transactions. The margin collateral serves as coverage for open transactions at Eurex. It is intended to offer protection against fluctuations in market prices. Margin collateral is determined by Eurex on a daily basis. — flatexDEGIRO Bank AG carries on foreign exchange trading via two business partners. Contractually agreed amounts of fixed collateral must be held in this context for the default risk. They amounted to kEUR 10,010 as of 31 December 2024 (previous year: kEUR 10,010). — flatexDEGIRO Bank AG uses UniCredit as a general clearer for its customer business in exchange -traded derivatives on Eurex. Cash collateral of kEUR 1,500 was deposited with UniCredit for this purpose as of 31 December 2024 (previous year: kEUR 1,500). — flatexDEGIRO Bank AG has received credit lines of kEUR 9,626 from its business partners for securities settled in foreign currencies (previous year: kEUR 9,050). In exchange it has deposited securities as collateral amounting to kEUR 17,241 (previous year: kEUR 25,244). flatexDEGIRO Bank AG can access the securities deposited as collateral at any time, whereby the credit line would be reducted as a result. — The collateral can be provided both in the form of defined securities with a fixed term and long and short maturities, and in the form of cash available at short notice. Permitted collateral can be switched at any time, as long as the total amount required is provided. — Securities amounting to kEUR 153,623 were also used as collateral to finance clearing business with ABN AMRO Clearing Bank (previous year: kEUR 133,196).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 129 flatexDEGIRO AG Net gains/losses on financial instruments Net gains and net losses on financial instruments measured at fair value through profit or loss include all the effects of current measurement, i.e. current interest and the results of measurement and disposal. Net gains and net losses on financial instruments measured at amortised cost or fair value through OCI include only the results of measurement and disposal recognised in the income statement for the period. The net gains/losses from financial instruments a re shown in the following overview. Net gains/losses on financial instruments In kEUR Net gains 2024 Net gains 2023 Financial assets measured at fair value through profit or loss 3,677 5,142 Financial assets (FVPL) 3,076 4,435 Equity instruments (FVPL -EQ) 601 707 Financial assets measured at amortised cost 598 649 Financial assets 583 634 Financial liabilities 15 15 Financial instruments measured at fair value through other comprehensive income 2,319 2,689 Financial assets (FVOCI) 2,319 2,689 Tot a l 6,594 8,480 Net losses 2024 Net losses 2023 Financial assets measured at fair value through profit or loss 10,487 12,279 Financial assets (FVPL) 6,023 5,910 Equity instruments (FVPL -EQ) 4,464 6,368 Financial assets measured at amortised cost 1,222 2,120 Financial assets 1,222 2,120 Financial liabilities - - Financial instruments measured at fair value through other comprehensive income 1,856 568 Financial assets (FVOCI) 1,856 568 Tot a l 13,565 14,967
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 130 flatexDEGIRO AG The decrease in net gains is mainly the result from measurement effect of a credit engagement, which led to higher net gains in the previous year. The decrease in net losses results mainly from measurement effects for financial instruments measured at fair value through profit or loss. The year -on-year decrease is primarily due to market-to-market losses on the real estate funds. Other disclosures relating to the statement of comprehensive income The total interest income for financial assets measured at amortised cost amounts to kEUR 173,721 in financial year 2024 (previous year: kEUR 130,745). The total interest expense for financial liabilities not measured at fair value through profit or loss a mounted to kEUR 4,162 in the financial year (previous year: kEUR 3,928). The consideration recognised as income or expense amounted to kEUR 0 in the financial year (previous year: kEUR 0). Note 12 Other Assets Other assets comprise the balance sheet items “Inventories and work in progress” and “Other receivables”, which are reported separately in the consolidated balance sheet in the 2023 consolidated financial statements . The two balance sheet items have been combined into one balance sheet item for the first time due to their minor significance and for the purpose of clarity and transparency of the consolidated statement of balance shee t. Overview of other assets In kEUR 2024 2023 Inventories and work in progress 590 392 Other receivables 13,183 23,769 Tot a l 13,773 24,161 Other assets decreased by kEUR 10,388 to kEUR 13,773 as of the reporting date (previous year: kEUR 24,161). The change in other receivables is mainly due to lower claims for tax refunds in the current financial year. The receivables from tax refund claims amounted to kEUR 8,605 as of the reporting date (previous year: kEUR 20,732). The tax refund claims consist largely of advance payments for corporation income tax and solidarity surcharge in the amount of kEUR 1,750 (previous year: kEUR 8.518), advance payments for trade tax of kEUR 2,195 (previous year: kEUR 6.493) and input tax refund claims amounting to kEUR 2,001 (previous year: kEUR 4,049). The tax refund claims also include receivables from the tax authorities in the amount of kEUR 2,526 (previous year: kEUR 1,214). Other receivables also include receivables from non -banks totalling kEUR 2,099 (previous year: kEUR 1,115) as of the balance sheet date.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 131 flatexDEGIRO AG Note 13 Equity Subscribed Capital The subscribed share capital at the end of the financial year is divided into 110,133 million (previous year: 109,993 million ) non-par-value registered shares with a nominal value of EUR 1.00 each. The subscribed capital of flatexDEGIRO AG as of the balance sheet date is kEUR 110,133 (previous year: kEUR 109,993). The change in subscribed capital from 2023 to 2024 results from options being exercised in the context of the employee stock option plans (2015 share option programme). For further details, we refer to Note 33. As part of the share buyback programme, 2.1 million shares were repurchased from the capital market by the balance sheet date. These shares are held in the portfolio until utilisation and are recognised in the balance sheet under a separate balance sheet i tem in equity. Consequently, the repurchased shares do not reduce the Group’s subscribed capital recognised in the balance sheet. However, the repurchased shares reduce the number of shares issued and in circulation. The following table shows the change in outstanding shares. Change in outstanding shares In units Number of shares issued and outstanding as of 31/12/2022 109,892,548 Number of new shares issued in 2023 100,000 Number of shares issued and outstanding as of 31/12/2023 109,992,548 Number of new shares issued in 2024 140,000 T reasury shares repurchased in 2024 -2,100,354 Number of shares issued and outstanding as of 31/12/2024 108,032,194 For further details, please refer to the sections “Treasury shares” and “Share buyback programme” in this note. Authorised Capital The flatexDEGIRO AG had authorised capital totallin g kEUR 54,400 (Authorised Capital 2021/I: kEUR 43,600; Authorised Capital 2021/II: kEUR 10,800) both at the beginning of financial year 2024 and on the balance sheet date. — By resolution of the Annual General Meeting of 29 June 2021 and with the consent of the Supervisory Board, the Management Board was authorised to increase the share capital by up to a total of kEUR 43,600 by 19 October 2025 against cash and/or non -cash contributions by issuing new registered no -par value shares on one or more occasions (Authorised Capital 2021/I). As a rule, the existing shareholders must be granted pre-emptive rights. However the Management Board, with the consent of the Supervisory Board, is authorised to exclude such pre-emptive rights of the shareholders in specific instances. The above -stated resolution of the Annual General Meeting of 29 June 2021 became effective upon entry in the commercial register on 20 August 2021. Authorised Capi tal 2021/I of flatexDEGIRO AG remains unchanged at kEUR 43,600 as of the balance sheet date. — By resolution of the Annual General Meeting of 29 June 2021 and with the consent of the Supervisory Board, the Management Board was authorised to increase the share capital by up to a total of kEUR 10,800 by 19 October 2025 against cash and/or non -cash contributions by issuing new registered no -par value shares on one or more occasions (Authorised Capital 2021/II). As a rule, the existing shareholders must be granted pre-emptive rights. However the Management Board, with the consent of the Supervisory Board, is authorised to exclude such pre-emptive rights of the shareholders in specific instances. The above -stated resolution of the Annual General Meeting of 29 June 2021 became effective upon entry in the commercial register on 20 August 2021. Authorised Capital 2021/II of flatexDEGIRO AG remains unchanged at kEUR 10,800 as of the balance sheet date.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 132 flatexDEGIRO AG Number of authorised shares In units 31/12/2024 31/12/2023 Number of authorised shares 54,400,000 54,400,000 Conditional capital By resolution of the Extraordinary General Meeting of 30 October 2014, the Management Board was authorised, with the consent of the Supervisory Board, to conditiona lly increase the share capital by up to kEUR 1,390, by issuing up to 1,390,000 new no -par-value bearer shares with dividend rights from the beginn ing of the financial year in which they are issued (Conditional Capital 2014, also referred to as Conditional Capital 2014/I in the Company’s commercia l register). In accordance with the resolution of 30 October 2014, the Conditional Capital 2014 serves exclusively to secure pre-emptive rights that are issued to the members of the Management Board, the employees of the Company and the members of the management and employees of affiliated companies of the Company in the period up to and including 30 September 2019 on the basis of the authorisation of the General Meeting of 30 October 2014 within the framework of the 2014 share option plan. The Annual General Meeting of 27 July 2016 resolved to convert the bearer shares of the Company into registered shares. Accordingly, the Conditional Capital 2014 was modified for the issuance of registered shares. By resolution of the Extraordinary General Meeting of 4 December 2017, the General Meeting’s authorisation, f rom 30 October 2014, to issue subscription rights as part of the 2014 share option plan which had been passed with modifications by the Annual General Meeting on 27 July 2016, was modified and substantiated. At the same time, the Conditional Capital 2014 w as amended to the effect that it also serves to secure pre -emptive rights issued on the basis of the authorisation resolution of the General Meeting of 30 October 2014, also with adjustments by the Annual General Meeting of 27 July 2016 and also in the ver sion following the amendment of the authorisation by the corresponding resolution of the General Meeting of 4 December 2017, and specifically also to the extent that the option conditions underlying the subscription rights in question were revised after the subscription rights were issued in the context of the corresponding resolution of the General Meeting of 4 December 2017. As part of the 2014 share option programme, a total of 859,000 new registered no -par-value shares with a proportionate amount of the subscribed share capital of EUR 1.00 per share were issued from the 2014 conditional capital in the 2019 financial year, a total of 125,000 in the 2020 financial year and a total of 83,000 by 1 July of the 2021 financial year; corresponding amendments to the Articles of Association were entered in the commercia l register. Accordingly, the Conditional Capital 2014 was authorised to kEUR 323 as of 1 July 2021. In the course of a capital increase from company funds in the form of a 1:4 share split resolved by the Annual General Meeting on 29 June 2021, the existing Conditional Capital 2014 increased by operation of law in the same proportion as the subscribed capital (factor 4) to kEUR 1,292. The correspon din g amendment to the Articles of Association was entered in the Commercial Register on 20 August 2021. As of the balance sheet date, the Conditional Capital 2014 of flatexDEGIRO AG amounts to kEUR 1,292. By resolution of the Annual General Meeting of 28 August 2015, the Management Board was authorised, with the consent of the Supervisory Board, to conditionally increase the share capital by up to kEUR 230, by issuing up to 230,000 new no-par-value bearer s hares with dividend rights from the beginning of the financial year in which they are issued (Conditional Capital 2015, also referred to as Condition a l Capital 2015/I in the Company’s commercial register). In accordance with the resolution of 28 August 201 5, the Conditional Capital 2015 serves exclusively to secure pre - emptive rights that are issued to the members of the Management Board, the employees of the Company and the members of the management and employees of affiliated companies of the Company in t he period up to and including 27 August 2020 on the basis of the authorisation of the Annual General Meeting of 28 August 2015 within the framework of the 2015 share option plan. The Annual General Meeting of 27 July 2016 resolved to convert the bearer shares of the Company into registered shares. Accordingly, the Conditional Capital 2015 was modified for the issuance of registered shares. By resolution of the Extraordinary General Meeting of 4 December 2017 , the authorisation to issue share options as part of a 2015 share option plan, resolved by the Annual General Meeting of 28 August 2015 with adjustments by the Annual General Meeting of 27 July 2016, was amended and substantiated. At the same time, the Conditional Capital 2015 was amended in such a way t hat it
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 133 flatexDEGIRO AG exclusively serves the securing of pre -emptive rights that were or will be issued on the basis of the authorisation resolution of the Annual General Meeting of 28 August 2015, also with adjustments by the Annual General Meeting of 27 July 2016 and in the v ersion after its amendment of the authorisation by the corresponding resolution of the General Meeting of 4 December 2017, and also insofar as the option conditions underlying the respective subscription rights were revised after the subscription rights we re issued in the context of the corresponding resolution of the General Meeting of 4 December 2017. As part of the 2015 share option programme, a total of 52,500 new registered no- par value shares with a proportionate amount of the share capital of EUR 1.0 0 per share were issued from the Conditiona l Capital 2015 in the 2020 financial year and a total of 70,000 by 1 July of the 2021 financial year; correspon din g amendments to the Articles of Association were entered in the commercial register. The Conditiona l Capital 2015 was reduced accordingly to kEUR 107,500 until 1 July 2021. In the course of a capital increase from company funds in the form of a 1:4 share split resolved by the Annual General Meeting on 29 June 2021, the existing Conditional Capital 2015 increased by law in the same proportion as the subscribed capital (factor 4) and now amounted to kEUR 430. The corresponding amendment to the Articles of Association was entered in the Commercial Register on 20 August 2021. As part of the 2015 share option plan, a total of 88,000 new registered no-par-value shares with a proportionate amount of the subscribed share capital of EUR 1.00 per share were issued from the 2015 conditional capital due to exercisin g share options, plus a total of 100,000 in financia l year 2022 and a total of 100,000 in financial year 2023; corresponding amendments to the Articles of Association were entered in the commercial register. Accordingly, the Conditional Capital 2015 was reduced to kEUR 142 as of 31 December 2023. In financial year 2024, due to the exercise of share options, an additional total of 140,000 subscription shares were issued from the Conditional Capital 2015, each representin g subscribed share capital of EUR 1.00 per share; as a result, the Conditional Capital 201 5 was reduced in the reporting year by kEUR 140 to kEUR 2. The corresponding amendments to the Articles of Association were entered in the Commercia l register on 6 May 2024 and 7 February 2025. As of the balance sheet date, the Conditional Capital 2015 amo unted to kEUR 2. By resolution of the Annual General Meeting of 7 August 2018, as amended following the adjustments made by the resolution of the Annual General Meeting of 29 June 2021 and with the approval of the Supervisory Board, the Management Board was authorised to c onditionally increase the share capital by up to kEUR 14,400 by issuing up to 14,400,000 new registered no-par-value shares with dividen d rights from the beginning of the financial year in which they are issued (Conditional Capital 2018/II). The condition a l capital increase serves to service bonds and/or profit participation rights issued up to 6 August 2023 on the basis of the corresponding authorisation resolution of the Annual General Meeting of 7 August 2018 in the version after the amendments by the resolution of the Annual General Meeting of 29 June 2021 . The authorisation to issue subscription rights expired on 6 August 2023 without being used. The Conditional Capital 2018/II therefore became void in its entirety. The Articles of Association were amen ded accordingly. The amended was entered in the commercia l register on 19 February 2024. By resolution of the Annual General Meeting on 4 June 2024, the Management Board was authorised, with the consent of the Supervisory Board, to conditionally increase the subscribed share capital by up to EUR 5,501,627, by issuing up to 5,501,627 new no -par-value registered shares wit h dividend rights from the beginning of the financial year in which they are issued (Conditional Capital 2024, also referred to as Conditional Capital 2024/I in the Company’s commercia l register). In accordance with the resoluti on of 4 June 2024, the Conditional Capital 2024 serves exclusively to secure pre-emptive rights that are issued to the members of the Management Board, the employees of the Company and the members of the management and employees of affiliated companies of the Company in the period up to and including 3 June 2029 based on the authorisation of the Annual General Meeting of 4 June 2024 within the framework of the 2024 share option plan. Additional paid-in-capital As of 31 December 2024, the additional paid -in-capital is kEUR 233,394 (previous year: kEUR 230,972) and is made up of the following components. — Amount exceeding the nominal value from payments for the issuance of new shares
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 134 flatexDEGIRO AG — Additional payments made by shareholders into the equity — Additional payments made by shareholders against the grating for preferred shares The additional paid -in-capital was increased by kEUR 195 through the agio of the issued shares. In addition, resulting from the share options programmes, there was an addition to the additional paid -in-capital in the amount of kEUR 2 ,227 (see Note 33). Retained earnings The following table shows the changes in retained earnings during the relevant reporting periods . Development of retained earnings In kEUR Change As of 01/01/2023 267,040 Additions to retained earnings 66,531 thereof Allocation from net profit 71,859 thereof Dividend distribution - thereof Contribution to/withdrawal from reserves -4,551 thereof Changes in the scope of consolidation not involving a change of control -777 Other comprehensive income -913 As of 31/12/2023 and 01/01/2024 332,659 Additions to retained earnings 106,795 thereof Allocation from net profit 111,535 thereof Dividend distribution -4,401 thereof Contribution to/withdrawal from reserves -339 thereof Changes in the scope of consolidation not involving a change of control - Other comprehensive income 363 As of 31/12/2024 439,817 Non-material errors from a previous period were correct ed retroactively in retained earnings with no effect of profit or loss. The presentation of these matters is recognised in the statement of changes in retained earnings in the item “Contribution to/withdrawal from reserves”. Treasury shares By resolution of the Annual General Meeting on 4 June 2024, the company is authorised until the end of 3 June 2029 to acquire treasury s hares for any permissible purpose up to a total of 10% of the company’s subscribed share capital existing at the time of the resolution on this authorisation or, if this value is lower, of the subscribed share capital existing at the time this authorisation is exercised. At the discretion of the Management Board, treasury s hares may then be acquired via the s hares exchange or by means of a public purchase offer addressed to all shareholders or by means of a public invitation to all shareholders to submit an offer to sell. The shares may also be acquired via one or more multilatera l trading facilities as outlined in Section 2 (6) of the German Stock Exchange Act (“ MTF”). Additionally, limited to an amount of up to 5% of the subscribed share capital existing at the time of the resolution by the Annual General Meeting or, if it is lower, of the subscribed share capital existing at the time of the respective exercise of the authorisation, the shares can be acquired by using derivatives (put options, call options, forward purchases or a combination of these instruments), whereby the maturity term of the derivatives may not exceed 1 8 months in each case and must be specified so that the shares are acquired by exercising the derivatives no later than 3 June 2029. The Management Board was also authorised to use the company’s treasury s hares acquired based on this authorisation or in any other way for all legally permissible purposes. With the exception of shareholders’ pre -emptive rights in connection with share -based compensation or option programmes, the shares may be offered, promised or transferred to employees of the company or companies affiliated with the company as well as members of the management of companies affiliated with the company or used to service i ssued convertible bonds and/or bonds with warrants. The acquired shares (excluding shareholders’ pre - emptive rights) may also be issued to members of the company’s Management Board as part of the variable compensation in fulfilment of applicable remuneration agreements. They may also be sold in return for non -cash contributions (particularly in connection with business
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 135 flatexDEGIRO AG combinations and acquisitions) or sold to third parties in return for cash contributions at a price that is not significantly lower than the market price at the time of sale. Treasury shares can also be cancelled. Share buyback programme Based on the authorisation to acquire treasury shares granted by the Annual General Meeting on 4 June 2024, the Management Board, with the approval of the Supervisory Board, passed a resolution on 30 September 2024 to implement a share buyback programme of up to EUR 50 million (excluding incidental acquisition costs). The share buyback programme began on 1 October 2024 and will end on 7 May 2025 at the latest. From 1 October 2024 to 31 December 2024, 2.1 million treasury shares were acquired from the capital market as part of the share buyback programme. As of the balance sheet date, 1.91% of the already issued shares (110.1 million shares) had therefore been repurchased. As of the balance sheet date, there are still 108.0 million shares outstanding. The amortised costs of the treasury shares held in full as of the balance sheet date amount to kEUR 28,692. The ancillary acquisition costs (in the narrower sense, the performance - related fee for the service provider) are initially recognised as a provision in other provisions until the share buyback programme is completed. They will be recognised directly in equity under “Treasury s hares held measured at amortised cost” outside of profit or loss when the share buyback programme is completed. Note 14 Liabilities owed to non-banks Liabilities owed to non-banks include non-current and curren t financial liabilities from leas ing and from hire purchase agreements concluded with suppliers. Only liabilities to financial service providers are recognised under financial liabilities from hire purchase agreements. Non-current liabilities owed to non-banks In kEUR 31/12/2024 31/12/2023 Non-current financial liabilities from leasing agreements 30,259 36,760 Non-current financial liabilities from hire purchase agreements 5,961 8,747 Tot a l 36,220 45,508
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 136 flatexDEGIRO AG Current liabilities owed to non-banks In kEUR 31/12/2024 31/12/2023 Current financial liabilities from leasing agreements 10,288 - Current financial liabilities from hire purchase agreements 3,525 - Tot a l 13,813 - Lease-purchase agreements allow the Group extended payment terms (up to 60 months) and the supplier early payment terms by including a financial services provider as a financing partner in the lease -purchase agreement. The acquisition of the lease -purchase object is already intended when the contract is concluded. Economic ownership is transferred to the Group as the lease purchaser when the lease-purchase object is delivered. After payment of the final repayment instalment to the supplier’s financing partner, ownership under civil law is automatically transferred to the Group. The following table contains further information on the financial liabilities from hire purchase agreements that fulfil the conditions of supplier financing arrangements and are recognised under non -current and current liabilities owed to non-banks. Financial liabilities from supplier financing arrangements In kEUR 31/12/2024 31/12/2023 Carrying amount of non- current financial liabilities 5,961 8,747 Carrying amount of current financial liabilities 3,525 - T otal carrying amount of financial liabilities 9,486 8,747 thereof liabilities for which suppliers have already received payments from financial service providers 9,486 -* Range of maturity dates in days after invoice date Financial liabilities subject to supplier financing arrangements 1-90 -* Comparable trade payables 14-30 -* Non-cash changes - -* *The Group is not required to disclose this comparative information in the first year of applying Supplier Financing Arrangements – Amendments to IAS 7 and IFRS 7. There were no significant non- cash changes in the carryin g amount of the financial liabilities covered by supplier financing arrangements. Apart from hire purchase agreements, no other contracts or agreements to be recognised under supplier financing arrangements are reported in the balance sheet. The Group companies do not engage in supply chain financing or reverse factoring. The leases recognised separately in accordance with IFRS 16 are not summarised under supplier financing arrangements.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 137 flatexDEGIRO AG Note 15 Pensions obligations flatexDEGIRO AG maintains defined benefit pension plans based on individual fixed-amount commitments. The pension commitments provide for old age, invalidity, and surviving dependent benefits, mostly in the form of life -long pension payments. In order to fi nance the pension commitments, reinsurance policies have been taken out for flatexDEGIRO AG employees with Rentenanstalt Swiss Life AG and MV Insurance Group. Some of the insurance policies have been pledged to the beneficiaries and meet the plan asset requirement, while other policies meet reimbursemen t rights requirements. The obligation amount is determined annually by independent actuaries using the projected unit credit method set out in IAS 19. This takes into account the known pensions and acquired projected units on the financial statement date, as well as the increases in pensions and projected units that are anticipated in future. Some commitments make provision for projected unit growth based on inflation trends or on fixed adjustment rates. Future pension adjustments are based on the statutory requirements; some add itional minimum adjustment guarantees may be in place. The actuarial interest rate used to discount the pension obligations as of the balance sheet date is based on the yield of high -quality corporate bonds. Income from the plan assets and expenditure from the compounding of obligations are recognised in net interest income. Service expenditure is classified as operating expenses. Gains and losses from adjustments and changes in the actuarial assumptions are r ecognised in full in equity in the period in which they arise. The parameters used for calculations can be taken from the following overview. Calculation parameters 31/12/2024 31/12/2023 Actuarial discount rate 3.30 % 3.20 % Inflation rate 2.50 % 2.50 % Mortality Heubeck- tables 2018 G Heubeck- tables 2018 G The calculation of provisions for pensions from defined benefit pension obligation is shown in the following overview. Calculation of net pension obligation In kEUR 31/12/2024 31/12/2023 Present value of defined benefit obligations 28,241 31,087 Fair value of plan assets -21,720 -23,240 Net pension obligation 6,521 7,847
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 138 flatexDEGIRO AG Development of the net pension obligation In kEUR 2024 2023 As per balance sheet at beginning of the financial year 7,847 5,428 Service expense 13 12 Gains/losses on settlement -196 - Net interest expense 418 184 Actuarial gains/losses 242 3,133 due to changes in financial assumptions -448 1,971 due to adjustments in experience 405 954 Income from plan assets, less the amount recognised in the profit and loss statement 285 207 Employer contributions to plan assets -1,721 -864 Pension benefits paid -58 -46 Settlement payments -24 - As per balance sheet at the end of the financial year 6,521 7,847 The development of the present value of defined benefit obligations, and the fair value of plan assets and reimbursement rights, is shown in the following tables. Defined benefit obligations In kEUR 2024 2023 Present value of defined benefit obligations at the beginning of the financial year 31,087 27,379 Components recognised in the profit and loss statement 808 994 Service expenses 13 12 Accrued interest expenses 991 982 Gains/losses on settlement -196 - Amounts recognised in other comprehensive income -43 2,926 Actuarial gains/losses -43 2,926 due to changes in financial assumptions -448 1,972 due to adjustments in experience 405 954 Payments and other adjustments -3,611 -212 Pension benefits paid -224 -212 Settlement payments -3,387 - Present value of defined benefit obligations at the end of the financial year 28,241 31,087
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 139 flatexDEGIRO AG Plan assets In kEUR 2024 2023 Fair value of plan assets at the beginning of the financial year -23,067 -21,951 Components recognised in the profit and loss statement -747 -798 Accrued interest income -747 -798 Amounts recognised in other comprehensive income 285 207 Income from plan assets, less the amount recognised in the profit and loss statement 285 207 Payments and other adjustments 1,809 -698 Employer contributions -1,721 -864 Other changes 3,362 - Pension benefits paid 167 167 Fair value of plan assets at the end of the financial year -21,720 -23,240 Reimbursement rights In kEUR 2024 2023 Fair value of reimbursement rights at the beginning of the financial year -2,040 -1,852 Components recognised in the income statement -68 -70 Accrued interest income -68 -70 Amounts recognised in other comprehensive income 61 74 Revenues from reimbursement rights other than amounts recognised in the profit and loss statement 61 74 Payments and other adjustments -191 -191 Employer contributions -191 -191 Fair value of reimbursement rights at the end of the financial year -2,239 -2,040 Reimbursement rights are recognised in the balance sheet item “Financial assets and other assets”. Allocation of the present value of pension obligations to the various beneficiary groups and the weighted duration of these obligations are set out in the following table.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 140 flatexDEGIRO AG Present value of defined benefit obligations per group of entitled plan participants In kEUR 31/12/2024 31/12/2023 Active employees 452 440 Former, vested employees 23,147 26,041 Retirees 4,642 4,606 Present valued of pension obligations 28,241 31,087 Weighted average duration of obligations in years 16 17 The plan assets consist of reinsurance policies for which there is no active market. The pension commitments are subject to the provisions of the German Company Pension Act. Since the commitments provide life-long pension benefits, there is a biometric risk in the event of increasing life expectancies. An inflation risk exists if growth in projected units and pension benefits is based on the inflation trend. A financial risk also exists to the extent that the actuarial discount rate, as well as the actual income on plan assets and reimbursement rights, depend on future market trends. Sensitivities to changes in the capital markets and to material assumptions are set out in the table below. The sensitivities are determined on the same basis and using the same valuation method as for the pension obligations as of the reporting date. When calculating the sensitivities, each assumption was changed in isolation; any correlations between the individual parameters are ignored for this purpose. Sensitivity analysis In kEUR 31/12/2024 31/12/2023 T otal obligation if the actuarial discount rate is increased by 0.25% p.a. 27,166 29,833 T otal obligation if the actuarial discount rate is decreased by 0.25% p.a. 29,379 32,417 T otal obligation if the inflation rate is increased by 0.25% p.a. 29,277 32,307 T otal obligation if the inflation rate is decreased by 0.25% p.a. 27,258 29,930 T otal obligation when the life expectancy of a 65 -year-old increases by 1 year 28,915 31,839 For the upcoming year, pension payments of kEUR 738 are expected (previous year: kEUR 218). Payments contributions to plan assets are also expected in the amount of kEUR 1,636 (previous year: kEUR 691) and in the amount of kEUR 191 (previous year: kEUR 191) for re imbursement rights.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 141 flatexDEGIRO AG Note 16 Liabilities owed to customers Financial liabilities owed to customers increased by kEUR 689,677 to kEUR 4,295,546 as of 31 December 2024 (previous year: kEUR 3,605,869). Liabilities owed to customers relate in particular to customer deposits at flatexDEGIRO Bank AG, which are essentially attributed to customer cash account balances held by the flatex, DEGIRO, and ViTrade brands. As of the reporting date of 31 December 2024, customers’ foreign exchange holding increased by kEUR 88,036 to kEUR 292,115 (previou s year: kEUR 204,079). The increase in customer deposits results primarily from the customer growth and a higher average deposit ratio. Note 17 Liabilities owed to banks There are no non-current financial liabilities owed to banks as of the reporting date. Current liabilities owed to banks In kEUR 31/12/2024 31/12/2023 Liabilities owed to banks 104,995 46,007 Foreign currency holdings 4,988 21,250 Tot a l 109,983 67,257 Financial liabilities owed to banks totalled kEUR 109,983 (previous year: kEUR 67,257) in the financial year and include kEUR 104,995 (previous year: kEUR 46,007 ) liabilities from securities settlements processing on behalf of customers as well as foreign currency balances from transactions on behalf of customers in the amount of kEUR 4,988 (previous year: kEUR 21,250). No financing liabilities owed to banks exist. Foreign exchange holdings essentially consist of obligation s to foreign banks received for processing of securities transactions on behalf of customers. Foreign currencies mainly consist of USD. Note 18 Other liabilities The other liabilities include other financial liabilities and break down as follows. Other liabilities In kEUR 31/12/2024 31/12/2023 T ax liabilities 54,809 20,065 Accruals and deferrals 1,200 2,287 Other financial liabilities 80 452 Tot a l 56,090 22,803 Other liabilities amount to kEUR 56,090 as of 31 December 2024 (previous year: kEUR 22,803). Ta x liabilities mainly consist of liabilities to the tax authorities for transaction taxes from customer business in the amount of kEUR 49,957 (previous year: kEUR 13,183) and of employee income tax and church tax of kEUR 2,765 (previous year: kEUR 3,458).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 142 flatexDEGIRO AG Note 19 Other provisions Other provisions are recognised for uncertain liabilities and identifiable risks to third parties. They developed as follows . Development of other provisions in the financial year In kEUR 01/01/2024 Utilisation Disposal Allocation 31/12/2024 Other provisions 23,103 18,269 1,084 36,647 40,396 Tot a l 23,103 18,269 1,084 36,647 40,396 Development of other provisions in the previous year In kEUR 01/01/2023 Utilisation Disposal Allocation 31/12/2023 Other provisions 21,522 17,618 1,605 20,804 23,103 Tot a l 21,522 17,618 1,605 20,804 23,103 The other provisions are measured at full cost and amount to kEUR 40,396 at year-end (previous year: kEUR 23,103). They mainly include expenses of the Group for performance - related, variable remuneration components in the amount of kEUR 14,654 (previous year: kEUR 4,597), for other personn el measures including holiday provisions of kEUR 2,831 (previous year: kEUR 2, 784), for audit fees and Group contributions of kEUR 2,765 (previous year: kEUR 1,682), and for outstanding invoices in the amount of kEUR 20,145 (previous year: kEUR 13,295).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 143 flatexDEGIRO AG Note 20 Tax provisions Tax provisions mainly consist of provisions for corpora te income tax, solidarity surcharge and trade tax. As of the reporting date, tax provisions decreased by kEUR 6,043 to kEUR 22,224 (previous year: kEUR 28,627). The decline in tax provisions is mainly attributable to tax payments during the financial year. Corporate income tax including solidarity surcharge increased by kEUR 2,725 to kEUR 21,684 (previous year: kEUR 18,959). Trade tax provisions declined by kEUR 6,604 to kEUR 516 compared with the previous year (previous year: kEUR 7,120). The significant decrease results from the utilisation of a trade tax provision recognised for the 2022 assessment period. Note 21 Revenues Revenues for the financial years 2024 and 2023 are as follows. Revenues In kEUR 2024 2023 Commission income 282,020 234,965 Interest income 180,470 136,327 Other operating income 17,534 19,440 thereof income of IT services 9,659 10,252 Tot a l 480,024 390,732 Timeline of revenue recognition at a specific point in time 480,024 390,732 over a period of time - - The main sources of revenue for flatexDEGIRO AG are commission income, interest income and, to a lesser extent, other operating income, primarily from the IT services business. In the financial year, commission income in the amount of kEUR 282,020 (previous year: kEUR 234,965) was generated primarily from the securities transactions for the flatex, DEGIRO and ViTra de brands, and from B2B services of flatexDEGIRO Bank AG. The increase results from a higher number of transactions and generally improved monetisation per transaction. Within the scope of online brokerage, flatexDEGIRO AG fulfils its performance obligations with execution of the respective order. The corresponding payments are due at the time of fulfilment of the performance obligation. Interest income increased in the amount of kEUR 180,470 (previous year: kEUR 136,327) in comparison to the previous
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 144 flatexDEGIRO AG year. The increase is mainly due to the changed interest rate conditions and the resulting positive interest rate on deposit facility by the Bundesbank with a simultaneous increase in customer deposits held in custody. Moreover, the interest rates for issued securities loans were adjusted in the course of 2024. General growth in customer numbers also contributed to the increase. Other operating income includes income from IT services in the amount of kEUR 9,659 (previous year: kEUR 10,252). The major component here is the IT services with the in ternally- developed FTX:CBS core banking system. The decline in external income of IT services is particularly due to the continued strategic focus on internal IT projects. Receivables and current contract liabilities In kEUR 31/12/2024 31/12/2023 Trade receivables (IT contracts) 14,015 11,912 Trade receivables (banking business) 11,078 10,685 Total receivables 25,093 22,597 Contract liabilities from IT contracts 17 26 Contract liabilities from banking business 1,181 2,214 Total current contract liabilities 1,198 2,240 During the reporting period, no revenue was recognised which was included in the contract liability balance at the start of the period. There was also no recognition of revenue from performance obligations which have been (partly) met in earlier periods. All services included in IT contracts are invoiced after a period of no more than one year. The relevant periodisation is carried out during the year. As permitted by IFRS 15, the tra nsaction price allocated to these unsatisfied performance obligations is not disclosed. In addition to the contract balances shown above, the Group has recognised an asset pertaining to the performance costs of a long-term IT contract. It is presented in the balance sheet under other assets. Assets – work in progress In kEUR 31/12/2024 31/12/2023 Costs capitalised at the time of execution of a contract with a customer as of 31 December 316 325 Depreciation, amortisation and impairments - - Tot a l 316 325
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 145 flatexDEGIRO AG Note 22 Raw materials and consumables The raw materials and consumables for the financial years 2024 and 2023 are broken down as follows. Raw materials and consumables In kEUR 2024 2023 Commission expense 49,097 44,964 Interest expense 9,663 13,892 Other operating expense 10,544 10,619 thereof IT costs 3,237 3,004 thereof IT business expenses 1,698 1,510 Tot a l 69,304 69,475 Commission expenses of kEUR 49,097 (previous year: kEUR 44,964) were recognised in the financial year. They mainly consist of external costs incurred in connection with the settlement of securities transactions with counterparties (stock exchange fees, custody fees, etc.). Similar to the commission income, the increase was mainly due to the increased trading activities of brokerage customers. Interest expenses in the amount of kEUR 9,663 (previou s year: kEUR 13,892) fell compared to the same period of the previous year, in particular due to market losses realised on funds and securities in the previous year. Other operating expenses in the amount of kEUR 10,54 4 (previous year: kEUR 10,619) include IT costs in the amount of kEUR 3,237 (previous year: kEUR 3,004) and IT business expenses in the amount of kEUR 1,698 (previous year: kEUR 1,510). Note 23 Personnel expenses On average, 1,271 employees were employed during 2024 financial year (previous year: 1,285). The following overview shows the average number broken down by group. Breakdown of the average number of employees by group within the Group In number of heads 2024 2023 Full-time employees 1,111 1,097 Part-time employees 144 179 Executive employees without Management Board 16 9 Tot a l 1,271 1,285 The breakdown of employees by group does not include members of the Management Board. The average numbers of all companies that are fully consolidated are included in the calculation. The average is calculated as the fourth part of the sum of the number of employees at the end of each quarter. The average number of employees in the Group is slightly below the previous year’s level.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 146 flatexDEGIRO AG The personnel expenses recognised can be broken down as follows. Personnel expenses In kEUR 2024 2023 W ages and salaries 92,856 68,470 Social security contributions and discretionary benefits 15,297 15,659 Income/expenses for pension obligations and employee benefits 262 -805 Personnel expenses for long -term variable remuneration 7,485 14,096 Tot a l 115,900 97,419 Capitalised development expenses 26,048 27,988 Personnel expenses for financial year 2024 totalled kEUR 115,900 (previous year: kEUR 97,419). The increase is mainly due to the change in expenses for wages and salaries, which totalled kEUR 92,856 in the financial year (previou s year: kEUR 68,470). This development was driven by genera l salary increases, provisions for personnel measures and variable remuneration components. Furthermore, capitalised development expenses for intangible assets (IAS 38), which reduces personnel expenses in the wages and salaries item, decreased by kEUR 1,939 to kEUR 26,048 (kEUR 27,988) compared to the previous year. The development expenses were particularly focused on the further development of the core banking system FTX:CB S and the DEGIRO trading systems. In the financial year 2024, expenses were incurred for the SARs plan launched in 2020 of kEUR 5,371 (previous year: kEUR 14,030). Expenses for the 2014 and 2015 s hare option plans and the newly introduced 2024 s hare option plan totalled kEUR 2,236 (previous year: kEUR 66) (see Note 3 3). Note 24 Marketing expenses Marketing and advertising expenses In kEUR 2024 2023 Marketing expenses 31,609 34,011 Tot a l 31,609 34,011 Marketing activities are particularly focused on acquiring new customers as well as raising brand awareness of flatex in the German and Austrian markets and of DEGIRO in the international markets. The reduction of marketing expenses of kEUR 2,402 was essentially related to a direct reaction of the change in the market environment and a stronger focus on acquiring new customers. This is confirmed by the change in sponsorship activities at Borussia Mönchengladbach from main sponsorship to co-sponsorship for th e 2024/25 season.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 147 flatexDEGIRO AG Note 25 Other administration expenses Other administrative expenses for the financial years 2024 and 2023 are as follows. Other administrative expenses In kEUR 2024 2023 IT expenses 19,861 14,201 Legal and consulting fees 17,606 10,510 Bank-specific contributions 9,384 7,652 Rental expenses 4,027 3,820 Travel expenses 2,954 1,823 Insurance, contributions and official fees 2,802 1,859 Other expenses 1,481 7,475 Representation 1,262 858 Vehicle expenses 681 678 Postage and office supplies 676 599 Tot a l 60,733 49,474 The main drivers of other administrative expenses are described below. IT expenses, which have increased by kEUR 5,660, primarily comprise expenses for maintenance, consultancy, and support services. The increase is mainly due to higher IT consulting costs. Legal and consulting fees increased by kEUR 7 ,096 compared to the previous year. The increase is mainly due to higher expenses for external consulting and auditing services in connection with the review of audit findings and general corporate governance issues. The increase in bank -specific contributions of kEUR 1,732 is mainly due to higher contributions, higher ancillary costs for money transfer and the increased business volume compared to the same period in the previous year. The increase in travel expenses by kEUR 1,131 is primarily attributable to an increase of the travel activity compared to the same period of the previous year. The decrease in other expenses by kEUR 5,994 is mainly due to previous year’s penalties from the Italian competition authority AGCM (kEUR 3,500) and the BaFin (kEUR 1,050).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 148 flatexDEGIRO AG Note 26 Financial result The financial result for financial years 2024 and 2023 factors in the sum of other financial income and other financial expenses. Calculation of the financial result In kEUR 2024 2023 Pension interest income 2,726 869 Other interest income 75 58 Total other financial income 2,801 926 Interest expenses for pensions 1,007 976 Interest expenses for non-current liabilities 2,426 1,076 Other interest expenses 407 206 T otal other financial expenses 3,841 2,258 Financial result -1,040 -1,332 Interest income from concluded pension agreements increased by kEUR 1,857. It is mainly the result of other changes in the fair value of plan assets and the present value of pension obligations recognised in profit or loss. The interest expense for pensions increased slightly by kEUR 31 compared to the previous year. The interest expense s for non -current liabilities comprises the interest expense from leasing and hire purchase agreements concluded with non -banks (supplier financing arrangements). It increased by kEUR 1,350 compared to the same period of the previous year due to the increased liabilities owed to non-banks. The total financial result recognised as an expense in financial year 2024 in the amount of kEUR -1,040 is kEUR 292 lower than in the previous year (kEUR -1,332).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 149 flatexDEGIRO AG Note 27 Income tax expense Income tax expense for the financial years ending 31 December 2024 and 31 December 2023 comprise the following components. Taxes on income and earnings In kEUR 2024 2023 Current income taxes Current income tax expense -41,447 -21,972 Tax income/expense for previous years -423 -15 Deferred taxes Deferred taxes on temporary differences -2,426 -9,358 Deferred taxes on losses carry forwards 179 188 Income taxes as per the profit and loss statement -44,117 -31,157 Other comprehensive income Changes to deferred taxes recognised in other comprehensive income -165 414 thereof actuarial gains/losses from defined benefit pension obligations 95 1,000 thereof gains/losses due to changes in fair value of financial assets measured at fair value through other comprehensive income (FVOCI) -259 -586 thereof recycling of deferred taxes - - Income taxes recognised in other comprehensive income -44,282 -30,743 In other comprehensive income in 2024, a deferred tax expense for the actuarial gains from defined benefit pension obligations in the amount of kEUR 95 (previous year: kEUR 1,000), and deferred tax expense on changes in the fair value of financial assets measured at fair value through other comprehensive income (FVOCI) in the amount of kEUR -259 (previous year: kEUR -586) were recognised. In Germany, the income tax calculation is based on a corporate tax rate of 15% and a solidarity surcharge of 5.5% incurred on this. Including the additional trade tax payable, the combined income tax rate for flatexDEGIRO AG in the tax group for income tax purposes is 31.221% (previous year: 31.185%). The variance is due to a change in the weighted average trade tax multiplier. The following table reconciles the expected tax expenses – as the product of earnings before income taxes and the combined income tax rate for flatexDEGIRO AG – and the tax expenses reported in the Profit and loss statement .
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 150 flatexDEGIRO AG Tax reconciliation 2024 2023 Earnings before taxes kEUR 155,652 103,016 Applicable tax rate % 31.22 31.19 Expected tax expense kEUR -48,596 -32,126 Effect from non -deductible expenses kEUR -835 -2,324 Effect from non -taxable income kEUR 113 128 Effect from non-deductible expenses from stock options plans kEUR - - Effect from current income taxes on previous year kEUR -423 -15 Effect from deferred taxes for previous years kEUR 22 - Effect from changes in tax rates of deferred taxes kEUR -26 -19 Effect from deviating tax rates kEUR 5,904 2,959 Effect of consolidation kEUR - - Other tax effects kEUR -276 240 Reported tax expenses kEUR -44,117 -31,157 Group tax rate % 28.34 30.24 As of the reporting date, there were taxable temporary differences relating to subsidiaries (outside basis differences in accordance with IAS 12.39) in the amount of kEUR 246 (previous year: kEUR 184) on which no deferred tax liabilities were recognised.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 151 flatexDEGIRO AG Composition of deferred tax assets and liabilities In kEUR 2024 2023 Deferred tax assets Loss carry forwards 487 307 Financial instruments 1,664 735 Pension obligations 4,136 4,756 Other financial obligations 15,803 13,506 Other temporary differences - - Offset in accordance with IAS 12. 74 -22,090 -19,304 Tot a l - - Deferred tax liabilities Intangible assets -60,625 -58,011 Property, plant and equipment -11,404 -10,466 Financial instruments - - Other financial obligations -429 -1,102 Other temporary differences - - Offset in accordance with IAS 12. 74 22,090 19,304 Tot a l -50,368 -50,275
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 152 flatexDEGIRO AG Note 28 Additional disclosures in accordance with IAS 7 – Consolidated Cash Flow Statement Development of financial liabilities The following two tables show the changes in liabilities from financing activities in the financial year 2024 and in the previous year 2023. Development of financial liabilities in the financial year In kEUR Carrying amount as of 01/01/2024 Cash-effective changes Non-cash effective changes Carrying amount as of 31/12/2024 Increase/ decrease Group changes Exchange rate changes Changes in fair values Other Changes Liabilities owed to non-banks 8,747 -3,537 - - - 4,275 9,486 739 Tot a l 8,747 -3,537 - - - 4,275 9,486 739 Development of financial liabilities in the previous year In kEUR Carrying amount as of 01/01/2023 Cash-effective changes Non-cash effective changes Carrying amount as of 31/12/2023 Increase/ decrease Group changes Exchange rate changes Changes in fair values Other Changes Liabilities owed to non-banks 9,461 -3,279 - - - 2,565 8,747 -714 Tot a l 9,461 -3,279 - - - 2,565 8,747 -714
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 153 flatexDEGIRO AG Lease payments according to IFRS 16 Principal payments In kEUR 2024 2023 Principal payments 8,429 7,699 Tot a l 8,429 7,699 During the financial year, principal repayments were made on lease liabilities in accordance with IFRS 16 in the amount of kEUR 8,429 (previous year: kEUR 7,699). Interest payments In kEUR 2024 2023 Interest payments 2,096 851 Tot a l 2,096 851 Interest payments on leases in accordance with IFRS 16 were made in the amount of kEUR 2,096 (previous year: kEUR 851). Payments of principal and interest therefore resulted in a total cash outflow of kEUR 10,525. (previous year: kEUR 8,550). Moreover, expenses for low -value leases totalled kEUR 200 in the financial year (previous year: kEUR 0). For the rights of use we refer to Note 10. Income tax payments relating to IAS 12 Income tax payments In kEUR 2024 2023 Income tax payments 35,021 53,035 Tot a l 35,021 53,035 Cash flow from operating activities includes income tax payments in the amount of kEUR 35,021 (previous year: kEUR 53,035). Supplier financing arrangements in accordance with IAS 7 The financial liabilities from concluded hire purchase agreements that fulfil the conditions of supplier financing arrangements are exclusively of a financing nature. Accordingly, the disbursements for the repayment of these financial liabilities are included in the consolidated cash flow statement under cash flow from financing activities under the item “Increase/decrease in liabilities owed to non-bank s”.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 154 flatexDEGIRO AG Note 29 Contingent liabilities and other financial obligations As of the reporting date, there were other financial liabilities from service contracts, rent and lease contracts, advertising contracts, and maintenance contracts. The remaining terms of these contracts are as follows. Residual maturities of other financial obligations In kEUR Tot a l as of 31/12/2024 Thereof up to 1 year Thereof more then 1 up to 5 years Thereof after 5 years Previous year From rent and lease contracts - - - - 217 From maintenance contracts 9,971 4,275 5,696 - 19,247 From advertising contracts 9,293 5,156 4,137 - - From other contracts 19,935 11,122 8,813 - 11,641 As of 31/12/2024 39,199 20,553 18,646 - 31,105 There were also contingent liabilities from irrevoca ble unused credit commitments in the amount of kEUR 1 (previou s year: kEUR 153).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 155 flatexDEGIRO AG Note 30 Related parties relationships and transactions In accordance with IAS 24, the governing boards and key management personnel of the parent company and their families, as well as members of management / Management Boards and Supervisory Boards of other key subsidiaries along with family members, are cons idered to be related parties. No stock appreciation rights (SARs) were granted to members of the Management Board in financial year 2024 (previous year: 456,129). For further disclosures, we refer to Note 3 3. Legal transactions and other transactions with related parties In the 2024 financial year, Group companies of flatexDEGIRO AG conducted legal transactions with related parties and companies as a tota l of kEUR 874 (previous year: kEUR 423), which mainly comprise contractual services for marketing and advertising as well as for location rental. In addition, some related parties hold accounts and securities custody with flatexDEGIRO Bank AG. All transaction s (securities transactions and lending/deposits business) are conducted at the market condition which are standard for customers. Note 31 Remuneration of the Management Board and Supervisory Board of flatexDEGIRO AG Remuneration of the Management Board of flatexDEGIRO AG The Management Board of flatexDEGIRO AG in 2024 consisted of Oliver Behrens, Dr Benon Janos, Stephan Simmang, Christiane Strubel and Frank Niehage, who resigned from the Management Board as of 22 April 2024. In the previous year, the Management Board was represented by Frank Niehage, Dr Benon Janos, Stephan Simmang and Muhamad Said Chahrour, who resigned from the Management Board as of 28 July 2023. The total remuneration for the Management Board of flatexDEGIRO AG in financial year 2024 amounts to kEUR 3,652 (previous year: kEUR 3,308). Thereof, the members of the Management Board received non - performance-based remuneration components in the form of fixed annual salaries of kEUR 1,9 29 (previous year: kEUR 1,268) and other remuneration of kEUR 1 08 (previou s year: kEUR 69). In addition, they received performance-ba sed remuneration in the form of short-term variable remuneration components of kEUR 1,353 (previous year: kEUR 1,900) and long-term variable remuneration components of kEUR 262 (previous year: kEUR 72). In addition, 473,820 share options were allocated to active members of the Management Board in the 2024 financial year. Payments totalling kEUR 560 were also made to former members of the Management Board. A detailed description and presentation of the remuneration system for the Management Board members of flatexDEGIRO AG can be found in the remuneration report, which is published on the flatexDEGIRO AG website at www.flatexdegiro.com/en/investor-relations/ corporat e- governance.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 156 flatexDEGIRO AG Remuneration of the Supervisory Board of flatexDEGIRO AG The members of the Supervisory Board who perform ed activities for flatexDEGIRO AG in their function as Supervisory Board members in financial year 2024 and in the previous year 2023 are listed in the following overview. Overview of members of the Supervisory Board 2024 2023 Chairman Martin Korbmacher Martin Korbmacher Deputy Chairman Stefan Müller Stefan Müller Member Bernd Förtsch - Member Aygül Özkan Aygül Özkan Member Britta Lehfeldt Britta Lehfeldt Member Herbert Seuling Herbert Seuling T otal number of members 6 5 In financial year 2024, a total of six people (previous year: five people) were members of the Supervisory Board of flatexDEGIRO AG. Martin Korbmacher, Frankfurt am Main, held the position of Chairman of the Supervisory Board in financial year 2024, as in the previous year 2023. Stefan Müller , Küps, performed his duties as Deputy Chairman of the Supervisory Board. Bernd Förtsch, Kulmbach, was elected as a new member of the Supervisory Board by resolution of the Annual General Meeting on 4 June 2024. As members of the Supervisory Board, Aygul Özkan , Hamburg, and Britta Lehfeldt , Frankfurt am Main, complete the current composition of the Supervisory Board as of 31 December 2024. Herbert Seuling , Kulmbach, ceased his activities as a member of the Supervisory Board for flatexDEGIRO AG on 4 June 2024. The Supervisory Board currently consists of five members (previous year: five members).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 157 flatexDEGIRO AG Activities performed by the members of the Supervisory Board In financial year 2024, the members of the Supervisory Board performed the following activities in addition to their duties for flatexDEGIRO AG. Overview of activities performed in financial year 2024 Member of the Supervisory Board Positions held Martin Korbmacher Managing Director, Event Horizon Capital & Advisory GmbH, Frankfurt am Main Managing Director, arsago ACM GmbH, Frankfurt am Main Managing Director, arsago Ventures GmbH, Frankfurt am Main Stefan Müller General Representative, Börsenmedien AG, Kulmbach General Representative, BF Holding GmbH, Kulmbach General Representative of GfBk Gesellschaft für Börsenkommunikation mbH, Kulmbach Managing Director, Panthera AM GmbH, Kulmbach Bernd Förtsch Member of the Management Board, Börsenmedien AG, Kulmbach Aygül Özkan Lawyer and Managing Director, Zentraler Immobilien Ausschuss (ZIA) e. V., Berlin Britta Lehfeldt Member of the Supervisory Board, flatexDEGIRO Bank AG, Frankfurt am Main Herbert Seuling Managing Director of M & S Monitoring GmbH, Kulmbach
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 158 flatexDEGIRO AG Memberships of other Supervisory Boards and other supervisory bodies as defined in Section 125 (1) sentence 5 of the German Stock Corporation Act (AktG) Furthermore, the members of the flatexDEGIRO AG Supervisory Board were members of other Supervisory Boards and other supervisory bodies as defined in Section 125 (1) sentence 5 of the German Stock Corporation Act (AktG) in financial year 2024. Overview of memberships in other Supervisory Boards Member of the Supervisory Board Memberships of other Supervisory Boards Martin Korbmacher Chairman of the Supervisory Board, flatexDEGIRO Bank AG, Frankfurt am Main Stefan Müller Chairman of the Supervisory Board of Heliad AG, Frankfurt am Main (known as FinLab AG prior to 13/10/2023) Member of the Supervisory Board, flatexDEGIRO Bank AG, Frankfurt am Main Bernd Förtsch Member of the Supervisory Board, flatexDEGIRO Bank AG, Frankfurt am Main (as of 1 November 2024) Aygül Özkan Deputy Chairwoman of the Supervisory Board of flatexDEGIRO Bank AG, Frankfurt am Main Member of the Supervisory Board, neoshare AG, Cologne (as of 14 November 2024) Member of the Supervisory Board, ERIC Group GmbH & Co. KG aA, Berlin Britta Lehfeldt Member of the Supervisory Board, flatexDEGIRO Bank AG, Frankfurt am Main Member of the Supervisory Board, V -Bank AG, Munich (as of 11 June 2024)
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 159 flatexDEGIRO AG Overview of memberships in other Supervisory Bodies: Member of the Supervisory Board Memberships of other Advisory Boards Aygül Özkan Member of the Advisory Board, Privatbank Donner & Reuschel Aktiengesellschaft, Hamburg Remuneration of the Supervisory Board The remuneration of the Supervisory Board is regulated in the Articles of Association. The remuneration of the members of the Supervisory Board of flatexDEGIRO AG and its subsidiaries for the activity of their duties in the financial year amounted to kEUR 693 (previous year: kEUR 668). Remuneration of the Supervisory Board In kEUR 2024 2023 flatexDEGIRO AG 412 387 Subsidiaries 281 281 Tot a l 693 668 Members of the Supervisory Board of flatexDEGIRO AG receive only a fixed remuneration of a regular nature plus the expenses allowances, which are classified as current payments in line with IAS 24.17 . The Supervisory Board members received fixed remuneration of kEUR 671 for the financial year (previous year: kEUR 646), plus additional reimbursement for travel expenses to Supervisory Board work in the amount of kEUR 22 (previous year: kEUR 22). The remuneration components for the activity of the Supervisory Board members of flatexDEGIRO AG and its subsidiaries are also described in detail and explained in the remuneration report of flatexDEGIRO AG, which is published on the website www.flatexdegiro.com/en/investo r- relations/corporat e-governan ce.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 160 flatexDEGIRO AG Note 32 Earnings per share Earnings per share (undiluted) The undiluted earnings per share is calculated by dividing the consolidated net profit attributable to the shareholders by the average number of the parent company’s shares issued during the financial year less repurchased treasury shares. Calculation of undiluted earnings after taxes per share 2024 2023 In units Issued shares Number of issued shares as of 1 January (all outstanding) 109,992,548 109,892,548 Number of treasury shares bought during the financial year 2,100,354 - Time-weighted recognition of treasury shares acquired in the financial year 338,182 - Number of new shares issued during the financial year 140,000 100,000 Time-weighted number of new shares issued during the financial year 46,521 40,658 Average weighted number of issued shares during the financial year (undiluted) 109,700,887 109,933,206 In kEUR Earnings after taxes From continuing activities 111,535 71,859 From discontinued operations - - Tot a l 111,535 71,859 In EUR Undiluted earnings after tax per share From continuing activities 1.02 0.65 From discontinued operations - - Tot a l 1.02 0.65
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 161 flatexDEGIRO AG Earnings per share (diluted) Diluted earnings per share are based on the exercise of other contracts for the issue of ordinary shares such as share options. The financial instruments are only included in the calculation of diluted earnings per share if they have a dilutive effect in the respective reporting period. The resulting effect is 149,486 shares. Diluted earnings per share in financial year 2024 amount to EUR 1.02 (previous year: EUR 0.65). The diluted average number of shares outstanding in the reporting year was 109,850,372. Note 33 Share option plans Share option plans 2014, 2015 and 2024 flatexDEGIRO AG set up share option plans to ensure the competitive overall remuneration of its managers. The first share option plan was launched in 2014. Pre -emptive rights from this plan were first issued in 2015. Each pre-emptive right issued pursuant to the share option plan gives the holder the right to acquire one bearer share in flatexDEGIRO AG against payment of the set strike price. The strike price is determined on the basis of the average closing price of the share over a fixed period of time preceding adoption of the relevant resolution by the Annual General Meeting, minus a discount. The maturity of these pre -emptive rights is six years from the date of issue; they may only be exercised upon expiry of a waiting period (vesting period) of four years. This requires that the stock exchange price of the share is exceeded by at least 100% on any stock market trading day within two years after the respective pre -emptive right (2014 Option Plan performance target) has been issued. Only in the event of a change of control as defined in the authorisation and, if applicable, in subsequent amendme nts to the option terms, or in the event of a delisting, may flatexDEGIRO AG pay, or the holders of pre -emptive rights demand cash compensation in lieu of shares (in some cases also before the end of the vesting period). A second share option plan (2015 Option Plan) was launched in 2015 by means of another authorisation granted by the Annual General Meeting. The terms for this plan were modified based on the share price performance, with reference to the exercise condition that the stock market closing price of the share must now exceed the respective subscription price by at least 50% on any stock market trading day, within two years aft er the respective pre -emptive right (2015 option plan performance target) has been issued. The other terms remain the same as those applicable to the first plan.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 162 flatexDEGIRO AG In financial year 2024, the Group issued another share option plan (Option Programme 2024), which was based on a further authorisation by the Annual General Meeting in 2024. Under the 2024 share option plan, eligible board members and employees have the opportunity to receive one share or a cash settlement from flatexDEGIRO AG for each share option exercised. The maturity of these pre -emptive rights is six years from the date of issue; they may only be exercised upon expiry of a waiting period (vesting period) of four years. The terms for this plan were modified based on the share price performance, with reference to the exercise condition that the stock market closing price of the share must now exceed the respective subscription price by at least 40% on any stock exchange trading day, within three years after the respective pre - emptive right (2024 option plan performance target) has been issued. In addition, the programme has been expanded to include a risk -adjusted “Risk Appetite Statement” factor. The Risk Appetite Statement is reviewed and approved annually by the Management Board and Supervisory Board of flatexDEGIRO AG and factors in the current reorganisation thresholds and regulatory requirements. If the value falls below this threshold on two consecutive dates, the entitlement under the share option plan is reduced accordingly. Valuation model For the share option plans 2014 and 2015 For each individual issue date, a separate options valuation was simulated on the basis of a Monte Carlo model. This model is based on the Kevin D. Brewer work, which is regarded as essential for the modelling of option models “Geometric Brownian Motion, O ption Pricing, and Simulation : Some Spreadsheet-based Exercises in Financial Modeling”. The share price performance over six years is simulated 100,000 times using a Monte Carlo simulation method for each issue date. Each price is checked to see if it has cleared the hurdle (condition 1) and is higher than the strike price at the predefined e xercise dates (condition 2). If this is not the case, a zero value is assigned on each exercise date and so the present value is also 0 on the issue date. If the value of the share is above the strike price on one of the pre -defined exercise dates, then the option has an intrinsic value, which is discounted to the issuance date using a five-year (assumed average exercise date) risk -free interest rate (source: Deutsche Bundesbank). It is assumed that the option is exercised on the first possible exercise date. For the share option plan 2024 For each individual issue date, a separate options valuation was simulated on the basis of a Monte Carlo model. The share price performance over six years is simulated 50,000 times using a Monte Carlo method for each issuance date. Each simulation analyses whether the final share price has exceeded the exercise price per share option and whether the exercise hurdle has been reached during the reference period of three years. Valuation parameters The first factor that goes into the model is the price of the share on the issue date (Xetra closing price). The options strike price is EUR 1.83 for the 2014 share option plan, EUR 3.20 for the 2015 share option plan and EUR 12.71 for the 2024 share option plan. The volatility could not be derived from an implied volatility due to non -existent derivatives on the shares of flatexDEGIRO AG. Therefore, annual volatility was determined using the historic volatility of the share price (source: Bloomberg). The risk -free interest rate for modelling of the six -yea r binomial expansion is based on the six -year interest rates valid in the respective issue months, based on the yield curve of listed German government bonds (source: Deutsche Bundesbank). The number of trading days was assumed to be 250. The hurdle is set out in the respective option plan. In the 2014 plan this is twice the issue price; in the 2015 plan 1.5 times the issue price and in the 2024 plan 1.4 times the issue price. Based on previous figures from the operational business, the transaction cost for options is only a few percent and as such is ignored for the purposes of this calculation.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 163 flatexDEGIRO AG Share option plan performance for 2014 and 2015 The table below sets out the performance of issued and outstanding pre -emptive rights/options according with the share split. Performance of issued and outstanding pre -emptive rights/options according with the share split Plan Date of issue Number issued in units Exercise price in EUR Price at date of issuance in EUR Price per option in EUR Total option value in kEUR 2015 share options plan 02/27/2020 80,000 3.20 6.96 1.50 120 Issued options for 2020 80,000 120 2015 share options plan 03/08/2019 348,000 3.20 5.21 1.04 363 Issued options for 2019 348,000 363 2014 share options plan 03/02/2018 140,000 1.83 6.76 1.28 179 Issued options for 2018 140,000 179 2014 share options plan 04/01/2017 332,000 1.83 3.70 0.42 138 2015 share options plan 04/01/2017 380,000 3.20 3.70 0.79 298 2014 share options plan 07/03/2017 40,000 1.83 4.50 0.42 17 2015 share options plan 07/03/2017 40,000 3.20 4.50 0.79 31 Issued options for 2017 792,000 484 2015 share options plan 04/07/2016 158,000 3.20 3.86 0.93 147 2015 share options plan 07/01/2016 40,000 3.20 3.08 0.64 26 2014 share options plan 01/26/2016 80,000 1.83 4.63 0.49 39 2014 share options plan 07/01/2016 40,000 1.83 3.08 0.49 20 2014 share options plan 07/06/2016 200,000 1.83 3.25 0.49 98 Issued options for 2016 518,000 330
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 164 flatexDEGIRO AG Plan Date of issue Number issued in units Exercise price in EUR Price at date of issuance in EUR Price per option in EUR Total option value in kEUR 2014 share options plan 01/26/2015 3,696,000 1.83 2.15 0.28 1,026 2014 share options plan 07/08/2015 336,000 1.83 3.70 0.60 202 2014 share options plan 08/24/2015 300,000 1.83 2.85 0.44 133 2015 share options plan 09/28/2015 80,000 3.20 3.11 0.65 52 2015 share options plan 10/01/2015 20,000 3.20 3.09 0.64 13 Issued options for 2015 4,432,000 1,425 Total issued options 6,310,000 2,900 2014 share options plan 07/08/2015 336,000 1.83 - - - 2014 share options plan 08/24/2015 300,000 1.83 - - - 2014 share options plan 01/26/2016 80,000 1.83 - - - 2014 share options plan 07/03/2017 40,000 1.83 - - - 2014 share options plan 03/02/2018 140,000 1.83 - - - 2015 share options plan 03/08/2019 3,024 3.20 - - - 2015 share options plan 02/27/2020 10,726 3.20 - - - Expired options 909,750 Already exercised options 5,006,000 - - - - Option value No further option rights from the 2014 and 2015 share option programmes were granted in the 2024 calendar year. 2,027,820 options were granted for the 2024 share option programme. Expenses from share option plans In the financial year 2024, a total of kEUR 2,236 (previou s year: kEUR 66) was recognised as an expense in the income statement for the current share option p lans. The expense was recognised pro rata temporis over the period from the issuance of the option to the allocation date (vesting date ). For the 2024 s tock option p lan, a pro rata expense of kEUR 2,227 was recognised for the first time and added to the capital reserve at the same time. Expenses of kEUR 9 (previous year: kEUR 66) were recognised for the 2015 share option plan. In this context, it was assumed that around 82% of the options granted would be exercised by the employees. Furthermore, income of kEUR 122 (previous year: kEUR 0) was recognised in financial year 2024 for expired options from the 2015 share option plan.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 165 flatexDEGIRO AG 2020 Stock Appreciation Rights Plan (SARs- Plan 2020) In addition to the share option plans, flatexDEGIRO AG launched the 2020 Stock Appreciation Rights Plan (SARs Plan 2020) in May 2020. Under the SARs Plan 2020, nearly four million stock appreciation rights (SARs) can be issued to Management Board members a nd employees. These can be exercised by the beneficiary within an additional three years following an initial waiting period of three years. Furthermore, up to 1,600,000 SARs can be issued under a purchase model. A requirement for the issuing of further SA Rs under the purchase model is the acquisition of shares in flatexDEGIRO AG. In 2024, no additional SARs were granted to employees (previous year: 456,129). A total of 1,595,125 (previous year: 2,030,438) SARs were outstanding as of the reporting date. SARs valuation model At flatexDEGIRO AG, the 2020 Stock Appreciation Rights Plan (SARs Plan 2020) is a share -based remuneration that is accounted for as a cash -settled plan in accordance with IFRS 2. A provision for this is recognised as an expense over the vesting period. The expense is recognized in personnel expenses. The provision is valued using a suitable option pricing model (Black-Scholes formula) and takes into account the anticipated EPS at the expected exercise date. Other valuation assumptions, including share price, interest rate and volatility were determined on the basis of publicly available market data as of the reporting date SARs performance The SARs vest pro rata temporis over the three -year vesting period and entitle the holder to a cash payment only, 50% of which depends on the share price performance and 50% on the earnings-per-share performance. As of 31 December 2024, a provision of kEUR 9,745 (previous year: kEUR 9,394) was recognised, along with corresponding expenses of kEUR 5,371 (previous year: kEUR 14,030). The intrinsic value of vested SARs as of 31 December 2024 was kEUR 1,723 (previous year: kEUR 11,634). Sensitivity of assumptions Management believes that no reasonably feasible change to any of the basic assumptions used to determine the respective valuation would cause material changes to the provision for the SARs. The performance of the share price cannot be directly influenced b y the management. In a simulation, adjustment of the EPS by +/ - 5.0% resulted in a change to the provision of up to +/ - 9.6%. With an adjustment of the EPS by +/ - 10.0% resulted in a change to the provision of up to 19.2%. This effect will decrease disprop ortiona t ely over the course of the vesting period.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 166 flatexDEGIRO AG Note 34 Segment reporting in accordance with IFRS 8 flatexDEGIRO AG is required by IFRS 8 to report on its operating segments. The type of segmentation is based on the management approach. Segments are parts of a company on which separate financial information is available. This information is regularly analysed by the Ma nagement Board and management during the allocation of resources and as part of performance appraisal. Since 2023 financial year the Group’s business segments have been defined by the two brands flatex and DEGIRO. The flatex segment comprises the online brokerage activities of the flatex brand, the Business Process Outsourcing unit, and that portion of the Credit & Treasury unit at flatexDEGIRO Bank AG that is not assigned to the DEGIRO segment. Furthermore, the flatex segment comprises the activities of the ViTrade brand for which no separate segment has been created for reasons of materiality. The DEGIRO s egment comprises the online brokerage activities under the DEGIRO brand and that portion of the Credit & Treasury unit assigned to the DEGIRO brand. Services provided between the segments are charged at market rates / arm’s length based on existing contracts. The business activities of the IT services unit and the holdin g company are allocated to both segments as cost centres. The accounting principles for all business transactions between the reporting segments meet IFRS requirements. There is a corresponding segment reporting to the management board of flatexDEGIRO AG. The Group generates revenue from the transfer of goods and services at a point in time exclusively from the Group companies based in Germany. In 2024 financial year, flatexDEGIRO AG did not realise significant revenues (> 10%) from any single customer. Segment report for continuing activities in 2024 In kEUR flatex DEGIRO Consolidation Tot a l Revenues 270,633 286,050 -76,660 480,024 Raw materials and consumables 68,412 37,768 -36,877 69,304 Personnel expenses 58,423 72,620 -15,143 115,900 Marketing expenses 16,213 20,304 -4,907 31,609 Other administration expenses 41,664 38,802 -19,733 60,733 EBITDA 85,921 116,556 - 202,477 Depreciation 45,785 EBIT 156,692 Financial result -1,040 EBT 155,652 Income tax expense 44,117 Consolidated net profit 111,535
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 167 flatexDEGIRO AG Segment report for continuing activities in 2023 In kEUR flatex DEGIRO Consolidation Tot a l Revenues 244,572 223,501 -77,341 390,732 Raw materials and consumables 73,806 35,205 -39,535 69,475 Personnel expenses 44,700 64,711 -11,992 97,419 Marketing expenses 21,152 21,479 -8,620 34,011 Other administration expenses 29,027 37,642 -17,194 49,474 EBITDA 75,887 64,465 - 140,352 Depreciation 36,004 EBIT 104,348 Financial result -1,332 EBT 103,016 Income tax expense 31,157 Consolidated net profit 71,859
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 168 flatexDEGIRO AG Note 35 Financial risk management The Management Board incorporates potential opportunities and risks into its business and risk strategy and adjusts this accordingly when necessary. At flatexDEGIRO AG, the monitoring and management of risks is a central component of the Company’s management tools. flatexDEGIRO AG conducts a regular risk inventory, which is also updated in response to specific events, and is integrated into the further risk management process to the extent that it is relevant and material. According to the last risk inventory in 2024 there are the following material risk types . — Credit risk: Credit risk means the risk of losses due to the default of counterparties (borrower, issuer, contracting party) and from changes in the creditworthiness of these parties. — Market price risk: Risk of loss due to changes in market prices, in particular as a result of interest rate changes, real estate price changes and credit spread and FX price changes — Operational risk: Operational risk refers to the risk of loss due to human error, the inadequacy of internal processes and systems, and external events. Legal and reputational risks are also included in this category. — Liquidity risk: Risk of losses resulting from liquidity shortfalls. — Other risk types: These particularly include business and pension risk. As the primary institution of the flatexDEGIRO Group, flatexDEGIRO AG assumes responsibility for the complete and comprehensive assessment, limitation and control of the aforementioned risks. As such, it contributes significantly to the work involved in Group-wide — Risk identification, — Risk assessment, — Risk management, — Risk monitoring and risk communication. flatexDEGIRO AG has therefore taken steps to enhance the existing extensive structural and procedural organisation a l measures that have already firmly established essential risk management and control processes in the relevant bank processes at a local level. Measures for standardising and producing a risk management system that is consistent Group -wide have been concluded. Credit risk Essentially, credit risk arises in any transaction that flatexDEGIRO AG conducts with a business partner, in particular with respect to loans due to customers, trade receivables and receivables from bank deposits, but also to bonds in which flatexDEGIRO AG has invested. The maximum credit and default risk essentially corresponds to the carryin g amount of the financial assets and the off -balance-sheet business (so -called credit volume or exposure). Collatera l received as security or other credit protections are not available. We refer to the notes below regarding further collateral received in connection with the granting of loans. The impairment requirement is analysed individually if events make this necessary (if there are impairment triggers) and on each reporting date. Impairments are recognised, for instance, if a business partner faces unexpected economic problems. In addition, a number of receivables are bundled into homogeneous groups and tested collectively for impairment. Expected credit losses at an individual transaction level General impairments must be taken into account on the initial recognition of the financial asset. The risk provision s allocated to level 1 are recognised at the individu a l transaction level. With regard to the credit strategy and the structure of the loan portfolios, please refer to the section entitled “Management and limitation of counterparty default risks” in the risk report of the Group Management Report.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 169 flatexDEGIRO AG For larger credit engagement, the Group runs periodic and ad hoc reviews to determine whether the credit risk at the individual transaction level has increased significantly. Parameters which are provided to fulfil the supervisory requirements of the Capital Requirements Regulation (CRR) are used to determine the expected credit loss (ECL). In order to determine the expected loss (EL) according to the CRR, multiplicative linking between probability of default (PD), loss given default (LGD), and the exposure amount in exposure at default (EaD), is carried out using the following formula: Impairment loss or risk provisions (EL) = PD x LGD x EaD At a Group level, an impairment loss is recognised for the amount of the expected credit losses that occur within the next twelve months. Risk provisions for level 1 financial instruments must therefore be recognised in the amount of the 12 -month ECL. The 12 - month ECL corresponds to the loss expected over the remaining term resulting from a default outcome which may occur within the next twelve months. This requires the ECL to be weighed against the probability of default of the financial instrument within the next twelve months following the measurement date (hereinafter: 12 -month PD [PD t12M]). Using the calculation formula according to CRR as described above produces a 12-month ECL as follows: ECLt12M = PDt12M x LGDt12M x EADt12M This corresponds to the portion of expected credit losses from default events anticipated within twelve months of the reporting date. If the credit risk has not increased significantly since the initial recognition, the financial instrument remains at level 1. The security-backed loans (Lombard and flatex -flex loans and margin loans) in Financial Services are loans secured by diversified deposits as security collateral in the custody accounts. The collateralisation value is set very conservatively with large discounts. Lombard and flatex -flex customers are immediately warned in a three -stage dunning process if the collateralisation limits are not met. Margin loans are monitored by margin calls with a two -day to intraday holding period. The LGD is derived from the one-year historical recovery rate for the Moody’s rating. The treasury portfolio is based on the regulatory LGDs in accordance with the CRR. The EaD security-backed loans is the utilisation minus the securities collateralisation (after haircut VaR 99.9%). Determination of the significant increase in credit risk In order to assess a significant increase in the credit risk, the credit risk at the time of acquisition is compared with the credit risk as of the reporting date. A loan impairment is recognised in the amount of the lifetim e expected credit loss (LTECL) for those financial assets that have assumed a significant increase in credit risk since their initial recognition. This requires calculation of the ECL based on the lifetime probability of default (LTPD), which represen ts the probability of default over the residual maturities of the financial assets. Credit risk provisioning is higher in Level 2 as credit risk increases and the impact of a longer time horizon , compared with twelve months in Level 1, is taken into account. The Group considers reasonable information that is relevant and available without undue burden when determining whether the credit risk of a financial asset has increased significantly since initial recognition. This includes quantitative and qualitative information based on the Group’s previous experience, analyses and assessments of credit risk, including — the financial instrument in question, — the borrower, — the borrower’s geographic region and — forward-looking information (including macroeconomic factors).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 170 flatexDEGIRO AG Procedure for the early detection of increased credit risks The procedure for early detection of increased credit risks is used to identify borrowers whose commitments are beginning to show latent or increased risks. It is designed to enable the Group to identify credit risks in credit engagement at an early stage so that appropriate risk mitigation measures can be taken if necessary. The monitoring of early warning signals in credit business is organised at various levels: — annual monitoring — systematic, event-oriented monitoring within the context of electronic dunning — systematic, event-oriented monitoring by credit agencies (SCHUFA and Creditreform) — event-driven monitoring if there are indications that the economic situation has deteriorated — event-oriented monitoring on the basis of other information (e.g. press reports) The following are early warning signals in credit business, which make it easier to identify a potentially increased risk. If factors used to determine an increased default risk cannot be identified at an individual loan level, an investigation is carried out at a higher aggregated level (e.g. sub -portfolio). Significant changes in the external market indicators of credit risk for a particular financial instrument, such as credit default swap rates, particularly for issuers from the treasury and internal credit ratings, are used as early warning indicators. The assessment of credit risk at a borrower level may be more likely to produce divergent results than an individu a l transaction level assessment. Therefore, other financial instruments of the same borrower are also checked to see whether the credit risk h as increased significantly. Account management, contractual compliance and borrower behaviour (e.g. overdue payments), for example, overdrafts on credit lines, non-compliance with agreements, covenants and conditions as well as missed interest and principa l payments of more than 30 days are red flags signalling an increased credit risk for the Group. When such early warning signs are detected, a test is carried o ut to determine whether any change in the external rating necessitates an increase in risk provisioning and possibly also allocation to a differen t level. Actual or anticipated significant adverse changes to the borrower’s regulatory, economic or technologica l environment that significantly alter the borrower’s ability to meet their debt obligations – such as a decline in demand for the borrower’s products d ue to a change in technology – serve as further indicators of increased credit risk. Furthermore, significant changes in the value of the collateral for the obligation or the quality of the guarantees or collatera l security of third parties that are likely to reduce the economic incentive of the borrower to make planned contractual payments, or that are likely to affect the probability of default, are recognised. Any indications of contract breaches by the debtor which could lead, for example, to waivers of or additional conditions, pauses in interest payments, increases in the interest rate level, additionally required collateral or guarantees or changes to the ge neral contractual terms of the instrument, will trigger an analysis of possible heightened credit risks. Framework for identifying financial assets at risk of default Under IFRS 9, the Group’s definition of impaired loans follow s the definition of loans classified as impaired for regulatory purposes pursuant to Article 178 of the Capital Requirements Regulation (CRR).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 171 flatexDEGIRO AG The assessment of whether a financial asset is at risk of default focuses exclusively on credit default risk without taking into account the effects of credit risk mitigations such as collateral or guarantees. Specifically, a financial instrument is at ris k of default and assigned to level 3 if the Group assumes that the debtor (borrower) will not meet its credit obligations to a Group company. This definition includes actions where the borrower has been granted a concession for economic or legal reasons th at are qualitative indicators of credit impairment, or where contractual principal or interes t payments by the debtor are more than 90 days overdue. As part of the level allocation, all financial instruments are allocated to level 1 upon addition. If the aforementioned early warning signs occur in the course of subsequent measurement, a test is performed to determine whether there is a significant increase in the default risk, whether an increase in risk provisioning is necessary, and whether the financial instrument needs to be transferred out of level 1. The assessment is based, among other factors, on the external rating trend. The default risk in level 1 essentially corresponds to that of an investment grade rating; in level 2 to a below -investmen t- grade rating; full repayment is not anticipated in level 3. Level 3 financial instruments are considered separately in terms of determining an impairment. Development of risk provisioning in the financial year In kEUR 12-month ECL Total ECL maturity - unimpaired financial instruments Total ECL maturity - impaired financial instruments Tot a l As of 31/12/2023 and 01/01/2024 87 377 8,472 8,937 Changes in impairment losses on financial assets, including newly issued or acquired financial assets 6 -290 772 487 Changes due to disposals of financial instruments (including repayments, disposals) - - - - Changes due to modifications without derecognition of assets - - - - Reclassifications due to changes in credit quality - - - - at total ECL maturity - non-impaired loans - - - - at total ECL maturity - impaired loans - - - - Changes in impairment for irrevocable loan commitments - - - - As of 31/12/2024 93 88 9,244 9,426
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 172 flatexDEGIRO AG Development of risk provisions in the previous year In kEUR 12-month ECL Total ECL maturity - unimpaired financial instruments Total ECL maturity - impaired financial instruments Tot a l As of 31/12/2022 and 01/01/2023 149 42 15,491 15,682 Changes in impairment losses on financial assets, including newly issued or acquired financial assets -62 335 -7,019 -6,746 Changes due to disposals of financial instruments (including repayments, disposals) - - - - Changes due to modifications without derecognition of assets - - - - Reclassifications due to changes in credit quality - - - - at total ECL maturity - non-impaired loans - - - - at total ECL maturity - impaired loans - - - - Changes in impairment for irrevocable loan commitments - - - - As of 31/12/2023 87 377 8,472 8,937 The increase in risk provisions of kEUR 487 (previous year: decrease of kEUR 6,746) is primarily due to the necessary addition of risk provisions for financial instruments for which specific valuation allowances have already been recognised and the conservatively structured loan portfolio. The changes in the portfolio from the stage allocation show the additions and reversals resulting from a change in the stage allocation in the reporting period. In the case of a transfer, the portfolio in the previous stage is cancelled in full and the target portfolio is added in full in the new stage. Level 1 (12 -month ECL) includes gross carrying amounts totalling kEUR 4,718,141 as of the reporting date (previous year: kEUR 3,902,207). Of this, a gross carrying amount of kEUR 1,166,561 (previous year: kEUR 892,624) is attributable to the securities backed loans (Lombard and flatex -flex loans, and margin loans). Due to the very conservative collateralisation system and low historical defaults, they are treated as financial instruments with an external investment grade rating for which a lower default risk is expected. If the securities backed loans persistently fall below the collateralisation level, they are assigned to Level 2 or 3. The gross carrying amounts in Level 1 are also due to receivables from banks in the treasury portfolio in the amount of kEUR 3,462,418 (previous year: kEUR 2,912,762) and irrevocable loan commitments in the amount of kEUR 1 (previous year: kEUR 153). For further details on the irrevocable loan commitments, see Note 29 “Contingent liabilities and other financial obligations”. The gross carrying amounts at level 2 (total ECL of non-credit- impaired financial instruments) amount to kEUR 2,196 (previous year: kEUR 3,032). This level includes securit ies backed loans with a significantly increased credit default risk at a gross carrying amounts of kEUR 2,196 (previous year: kEUR 3,032).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 173 flatexDEGIRO AG Level 3 (total maturity ECL of impaired financial instruments) has gross carrying amounts totalling kEUR 10,925 (previou s year: kEUR 11,264). These largely consist of the factoring portfolio with a gross carrying amounts of kEUR 7,003 (previous year: kEUR 7,162) and securities backed loans with a gross carrying amount of kEUR 258 (previous year: kEUR 1). Considering the high level of collateralisation, there were no significant changes in risk provisioning as of the reportin g date. Furthermore, new findings relating to individua l exposures were taken into account in the calculation of loan loss provisions and the assignment to levels. To validate the recoverability, several possible scenarios and their probability of occurrence are simulated. The scenarios and probabilities are based on assessments, empirical values and publicly available information. In the process, both customer-specific and macroeconomic situations as well as the industry environment are considered on a forward - looking basis. The simulated scenarios include the potentia l loss of creditworthiness if the rating is downgraded by one or two rating grades. A downgrading of the credit rating by one rating grade would lead to an increase in risk provisions of up to approximately kEUR 62, while a downgrading by two rating grades would result in increased risk provisioning of up to approximately kEUR 131. The scenarios are appl ied at level 1 and level 2. The risk capacity analysis and related assumptions revealed no indication that a significant adjustment of the carrying amount will be required in the next financial year. In addition , the analysis also considers the collateralisation. Therefore, suitable requirements for the type of security, creditworthiness, volatility and liquidity of the securities accepted as collateral, conservative collateralisation rates, as well as and ongoing monitoring of credit lines and securities, ensure that the securities backed loans utilised by customers are matched by sufficient deposited securities even in the event of falling prices. The real estate financing is secured by real assets, guarantees and the assignment of other receivables. The diversified collateralisation structure in the aforementioned loan portfolio demonstrated again this year that the bank has established an extensive liability umbrella to counteract potential defaults and reduce risks. Market price risk flatexDEGIRO AG has stable and extensive cash deposits (flatexDEGIRO Bank AG) in its “flatex” and “DEGIRO” segments. In this context, flatexDEGIRO is only involved in maturity transformation to a minor extent and manages interest rate risk as a rule by its highly conservative assets/liability management. The following table shows the sensitivity of the Group’s profit before taxes and equity to possible fluctuations of +0.5 percentage points or - 0.5 percentage points in market interest rates, with all other variables remaining the same . In kEUR Change in market interest rate Earnings before taxes (new) in kEUR Equity (new) in kEUR 2024 +0,5 percentage points 176,029 775,028 2024 -0,5 percentage points 135,276 734,275 2023 +0,5 percentage points 120,719 691,327 2023 -0,5 percentage points 85,313 655,920
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 174 flatexDEGIRO AG The risk for financial instruments arising from exchange rates risks (currency risk) is not considered not material at flatexDEGIRO AG. Liquidity risk Due to the special configuration of the business model, flatexDEGIRO can look back on a solid refinancing structure. The liquidity position is managed daily by the Treasury department and monitored by Risk Controlling to ensure that countermeasures can be initiated immediately, even in the event of sudden, unfavourable scenarios. flatexDEGIRO AG has considered steps to guarantee that its ongoing planned expansion is financed and has introduced liquidity buffers in its internal reporting structure, which allows for insufficien t financial resource risks to be monitored on a regular basis. The remaining terms of the contractual liabilities are as follows In kEUR Total as of 31/12/2024 Thereof up to 1 Ye a r Thereof between 1 and 5 years Thereof more than 5 years Previous year Non-current liabilities owed to non - banks1 50,033 13,813 32,147 4,073 45,508 T rade payables 4,821 4,821 - - 5,719 Liabilities owed to customers 4,295,546 4,295,546 - - 3,605,869 Liabilities owed to banks 109,983 109,983 - - 67,257 As of 31/12/2024 4,460,383 4,424,163 32,147 4,073 3,724,353 1 thereof Leases 40,547 10,288 26,186 4,073 36,760 Risk concentration Risk concentrations are important for flatexDEGIRO AG, especially with regard to potential cumulative counterparty credit risks among bond issuers or partners in the Group’s lending business (“cluster risks”). flatexDEGIRO AG has an investment guideline and a limit system derived from them, which generally prevents risk concentrations. Monitoring is carried out with regard to possible concentration trends during maturity terms, in the geographic spread of counterparties, and in asset classes, but with a particular focus on possible risk concentrations in individu a l counterparties (outside the central banking sector): As of the reporting date of 31 December 2024, the nominal amount (after credit mitigation) of the highest receivable from a counterparty was mEUR 92.3 (previous year: mEUR 48.2).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 175 flatexDEGIRO AG Note 36 Capital management The primary objective of capital management is to ensure compliance with the statutory solvency regulations that exist for the operation of banking and financial services businesses and that prescribe a statutory minimum capital requirement. This is intend ed to strengthen the quantitative and qualitative capital base. At flatexDEGIRO, the consideration for the purposes of minimum capital requirements in connection with the fulfilment of the statutory solvency requirements pursuant to the Capital Requirements Regulation (CRR), Regulation (EU) No. 575 / 2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, are carried out in accordance with Article 11 et seqq. on a consolidated basis (regulatory financial holding group). The data basis for the regulatory scope of consolidation is derived from the IFRS consolidated financial statements for the accounting scope of consolidation. The information is based on the legal basis valid on the reporting date. Since 31 December 2022, the scope of consolidation has corresponded to the scope of consolidation of these consolidated financial statements in accordance with Article 11 CRR. With effect from 24 May 2022, flatexDEGIRO AG, with its registered office in Frankfurt, is the parent financial holding company pursuant to Section 2f KWG and the superordinate company of the flatexDEGIRO financial holding group for regulatory purposes. T o manage and adjust the group’s capital, flatexDEGIRO has the following means and measures at its disposal in particula r: — Issue of new shares — Reinvestment (of parts) of the profit — Allocations to the statutory reserve (to strengthen Common Equity Tier 1 capital) In accordance with Article 25 et seqq. CRR, the Common Equity Tier 1 capital of the Group is composed of the followin g equity items, among others: subscribed capital, additiona l paid-in-capital, legal reserve and retained earnings. Tier 1 capital is reduced by intangible assets and goodwill, among other items. Furthermore, the repurchased treasury shares acquired as part of the share buyback programme have a capital-reducing effect. In 2024, flatexDEGIRO AG was granted permission by BaFin to reduce its capital in accordance with Article 77 and Article 78 CRR in conjunction with Article 29 of Commission Delegated Regulation (EU) No. 827/2023 dated 11 October 2022. The share buyback will be financed by the year-on-year gain generated in 2023, which has not yet been included in regulatory capital and therefore regulatory reporting. No existing regulatory capital components for financing the share buyback are can celled. To determine the risk -weighted exposure values (counterparty risks), flatexDEGIRO uses the credit risk standard approach in accordance with Article 111 et seqq. CRR. The standard approach is used to determine the capital charge for operational risk (Articl e 317 et seqq. CRR). The standard method is used to determine the capital charge for market price risk (foreign currency risk) (Article 351 et seqq. CRR). At group level, flatexDEGIRO is generally required to back its capital requirements for counterparty default risk, its capital requirements for operational risk and its capital requiremen ts for market price risk with at least 8.00% eligible capital in accordance with Article 92 ff CRR (capital ratio). This is supplemented by a surcharge from the SREP (Supervisory Review and Evaluation Process) in the amount of 2.75 percentage points (previous year: 4.25 percentage points). Overall, this results in a capita l requirement of 10.75% (previous year: 12.25%) as a TSCR requirement (Total SREP Capital Requirement). Furthermore, additional Common Equity Tier 1 capital of 2.50 percentage points (capital conservation buffer in accordance with Section 10c of KWG) must be maintained for the additional regulatory capital buffer requirements. They are supplemented by a so-called Countercyclica l Capital Buffer (CCyB), the exact value of which is determined according to the geographical distribution of the counterparty default - based business and is consequently subject to a certain volatility. Overall, this results in the OCR (Overall Capital Requirement), which is 14,08% for flatexDEGIRO AG (previou s year: 15.44%).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 176 flatexDEGIRO AG The relationship between capital requirements and capital as of the reporting date (data for financial year 2024 without profit recognition and determination; data financial year 2023 without profit recognition but after determination) is shown below. Ratio between capital requirements and capital of the reporting date In kEUR 2024 2023 Common Equity Tier 1 capital 222,212 244,204 Additional Tier 1 Capital - - Supplementary capital - - Eligible capital 222,212 244,204 Capital requirements for counterparty risks 558,582 416,776 Capital requirements for market risks 11,045 13,766 Capital requirements for operational risk 477,788 477,750 Total capital ratio (at least 15.44% consisting of 12.94% + 2.50% capital buffer) 21.22 26.89 Common Equity Tier 1 capital ratio including SREP surcharge (at least 12.25%, previous year 13.00%) 21.22 26.89
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 177 flatexDEGIRO AG Note 37 Dividend In accordance with the German Stock Corporation Act, the dividend is distributed from balance sheet profit recognis ed in the annual financial statements of flatexDEGIRO AG (separate financial statements) prepared in accordance with German Commercial Code. It will be proposed to the Annual General Meeting that a dividend of mEUR 4.3 (EUR 0.04 per dividend-bearing share) should be distributed from the net retained profits of flatexDEGIRO AG for financial year 2024. For financial year 2023, mEUR 4.4 (EUR 0.04 per dividend - bearing share) was distributed to shareholders by resolution of the Annual General Meeting in accordance with the proposed appropriation of profits. At the end of financial year 2024, 108,032,194 (previous year: 109,992,548) issued shares were entitled to dividends. Note 38 Auditors’ fees Fees for auditors recognised as expenses in the financial year are as follows. Overview of the total fees charged In kEUR 2024 2023 Audit fees of financial statements 1,740 1,501 thereof Baker Tilly GmbH & Co. KG 1,561 615 thereof BDO AG 179 886 Other assurance services 428 219 Tot a l 2,168 1,720 Expenses for audit fees of financial statements increased by kEUR 239 to kEUR 1,740 compared to the previous year. In the 2024 financial year, these expenses mainly include the fees for the audit services provided by the group auditor Baker Tilly GmbH & Co. KG for both flatexDEGIRO AG and flatexDEGIRO Bank AG. The expenses for auditing services in financial year 2024 include kEUR 71 (previous year: kEUR 83) for auditing services for the previous financial year.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 178 flatexDEGIRO AG Note 39 Events after the balance sheet date Conclusion of a purchase agreement for an impaired loan exposure On 4 February 2025, a purchase agreement was notarised between the insolvency administrator and a special purpose entity of an asset manager specialising in real estate for an impaired loan exposure, which was recognised as a financial asset at fair value through profit or loss (FVPL). Resignation of the Chairman of the Supervisory Board as of 27 March 2025 Martin Korbmacher, Chairman of the Supervisory Board of flatexDEGIRO AG, informed the Chairman of the company's Management Board on 27 February 2025 that he will resign from his position on the company's Supervisory Board prematurely with effect from 27 Ma rch 2025. With regard to the ongoing legal proceedings regarding the action for rescission and positive declaratory judgemen t dated 4 July 2024 at the Regional Court of Frankfurt am Main under file number 3 -05 O 70/24 against the findings on agenda item 13 of the An nual General Meeting of flatexDEGIRO AG on 4 June 2024, resolution on the dismissal of a member of the Supervisory Board pursuant to Section 103 AktG (Mr Martin Korbmacher), the company and the plaintiff, GfBk Gesellschaft für Börsenkommunikation mbH, intend to terminate these proceedings promptly by way of a settlement. Frankfurt am Main, 1 2 March 2025 flatexDEGIRO AG Oliver Behrens Dr. Benon Janos CEO, Chairman of the Management Board Deputy CEO & Chief Financial Officer, Member of the Management Board Stephan Simmang Christiane Strubel Chief Technology Officer, Member of the Management Board Chief Human Resources Officer, Member of the Management Board
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Further Information Responsibility Statement of the Legal Representatives 180 Independent Auditor’s Report 182 Group Key Performance Indicators by Quarter 196 Financial Calendar / Imprint 199
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Responsibility Statement of the Legal Representatives
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 181 flatexDEGIRO AG Responsibility Statement of the Legal Representatives “We hereby affirm that, in accordance with the applicable accounting principles, the Consolidated Financial Statements give a true and fair view of the net assets, financial position and financial performance of the Group, and that the Combined Management Report includes a fair view of the development and performance of the business and the position of the Group corresponding to the actual situation of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group .” Frankfurt am Main, 12 March 2025 flatexDEGIRO AG Oliver Behrens Dr. Benon Janos CEO, Chairman of the Management Board Deputy CEO & Chief Financial Officer, Member of the Management Board Stephan Simmang Christiane Strubel Chief Technology Officer, Member of the Management Board Chief Human Resources Officer, Member of the Management Board
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Independent Auditor’s Report
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 183 flatexDEGIRO AG INDEPENDENT AUDITOR’S REPORT1 To flatexDEGIRO AG, Frankfurt am Main REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT Audit Opinions We have audited the consolidated financial statements of flatexDEGIRO AG and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 31 December 2024, the consolidated statements of profit or loss and of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the financial year from 1 January 2024 to 31 December 2024, and notes to the consolidated financial statements, including the presentation of the significant accounting policies. In addition, we have audited the combined management report of flatexDEGIRO AG for the financial year from 1 January 2024 to 31 December 2024. In accordance with German legal requirements, we have not audited the content of the components listed under "Other information". In our opinion, on the basis of the knowledge obtained in the audit, • the accompanying consolidated financial statements comply, in all material respects, with the IFRS accounting standards issued by the International Accounting Standards Board (IASB) (hereinafter referred to as "IFRS accounting standards") as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with these requirements, give a true and fair view of the assets, liabilities and financial position of the Group as at 31 December 2024 and of its financial performance for the financial year from 1 January 2024 to 31 December 2024, and • the accompanying combined management report as a whole provides an appropria te view of the Group's position. In all material respects, this combined management report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our audit opinion on the combined management report does not cover the content of the components listed under "Other information". ________ 1 This is a convenience translation of the German original. Solely the original text in the German language is authoritative.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 184 flatexDEGIRO AG Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the combined management report. Basis for the Audit Opinions We conducted our audit of the consolidated financial statements and of the combined management report in accordance with Section 317 HGB and the EU Audit Regulation (No. 537/2014, referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report" section of our auditor's report. We are independent of the Group entities in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. In addition, in accordance with Article 10 (2) lit. (f) of the EU Audit Regulation, we declare that we have not pr ovided non- audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and on the combined management report. Key Audit Matters in the Audit of the Consolidated Financial Statements Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year from 1 January 2024 to 31 December 2024. These matters were addressed in the cont ext of our audit of the consolidated financial statements as a whole, and in forming our audit opinion thereon, we do not provide a separate opinion on these matters. We determined the following issue to be the most important in our audit:
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 185 flatexDEGIRO AG • Impairment of goodwill Our presentation of this key audit matter has been structured as follows: 1.) Facts and problem definition Risks for flatexDEGIRO AG result from the goodwill impairment testing reported under the balance sheet item "intangible assets". The balance sheet item amounts to EUR 180.6 million (previous year: EUR 180.6 million) and represents 3,4 % of consolidated balance sheet total. The Goodwill was allocated to cash- generating units. Cash-generating units with goodwill are subjected to an impairment test by the company at least once a year and additionally if there are indications of impairment. The valuation is carried out using a valuation model based on the discounted cash flow meth od. If the carrying amount of a cash- generating unit is higher than the recoverable amount, an impairment loss is recognised in the amount of the difference. The assessment of the recoverability of goodwill is complex and requires numerous estimates and discretionary decisions by the legal representatives, particularly with regard to the amount of future cash surpluses, the growth rate for the forecast of cash flows beyond the detailed planning period and the discount rate to be used. Due to the significance of the amount of goodwill for the consolidated financial statements of flatexDEGIRO AG and the significant uncertainties associated with the measurement a key audit matter is given. 2.) Audit procedures and findings As part of the audit of the consolidated financial statements, we first obtained an understanding of the valuation process and the significant assumptions made by the legal representatives in the planning for the valuation of goodwill. Based on this, we assessed the effectiveness of selected relevant controls relating to the performance and approval of the corresponding goodwill valuations.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 186 flatexDEGIRO AG In addition, we assessed the appropriateness of the key assumptions and parameters subject to judgement as well as the calculation method used to measure goodwill. We reconciled the forecast of future cash surpluses in the detailed planning period with the multi-year plan approved by the Executive Board and satisfied ourselves of the Company's adherence to the plan based on an analysis of plan/actual deviations in the past and in the 2024 financi al year. We verified the assumptions underlying the planning and the growth rates assumed in the forecast of cash flows beyond the detailed planning period by comparing them with past developments and current industry-specific market expectations. In addition, we critically scrutinized the discount rate used on the basis of the average cost of capital of a peer group. Our audit also included the sensitivity analyses performed by flatexDEGIRO AG. Furthermore, we satisfied ourselves of the mathematical accuracy of the valuation model used. For the audit of the goodwill impairment testing, we involved internal specialists with particular expertise in the field of company valuation. Our audit procedures did not lead to any reservations relating to the impairment of goodwill. 3.) Reference to further information flatexDEGIRO's disclosures on the impairment of goodwill are contained in the notes to the consolidated financial statements (see in particular the sections "Notes on significant accounting policies", "Intangible assets" and the section "Impairment of derivative goodwill" in the notes to the consolidated financial statements).
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 187 flatexDEGIRO AG Other information The legal representatives or the Supervisory Board are responsible for the other information. The other information includes • the separate non- financial group report published on the Company's website to which reference is made in section 1.10 of the combined management report, • the (Group) corporate governance declaration ("Declaration of Conformity with the German Corporate Governance Code") published on the Company's website to which reference is made in the section 1.2 of the combined management report. • the responsibility statement by the legal representative (balance sheet oath) in the section "Further information" of the annual report, • the remuneration report published on the Company's website in accordance with Section 162 AktG to which reference is made in Note 32 to the consolidated financial statements, • the remaining parts of the annual report, with the exception of the audited consolidated financial statements and combined management report and our auditor's report. Our audit opinions on the consolidated financial statements and combined management report do not cover the other information, and consequently we do not express an opinion or any other form of audit conclusion thereon. In connection with our audit, it is our responsibility to read the other information and to assess whether the other information. • contains material discrepancies with the consolidated financial statements, the combined management report or our knowledge gained during the audit, or • otherwise appears materially misrepresented.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 188 flatexDEGIRO AG Responsibility of the Management Board and the Supervisory Board for the consolidated financial statements and the combined management report The Management Board (as legal representatives) is responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group. In addition, Management Board is responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and misappropriation of assets) or error. In preparing the consolidated financial statements, the Management Board are responsible for assessing the Group's ability to continue as a going concern. Furthermore, they are responsible for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so. Furthermore, the Management Board is responsible for the preparation of the combined management report that, as a whole, provides an appropriate view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the Management Board is responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a combined management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the combined management report. The Supervisory Board is responsible for overseeing the Group's financial reporting process for the preparation of the consolidated financial statements and the combined management report.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 189 flatexDEGIRO AG Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error , and whether the combined management report as a whole provides an appropriate view of the Group's position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our audit opinions on the consolidated financial statements and on the combined management report. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and combined management report. We exercise professional judgment and maintain professional skepticism throughout the audit. We also • identify and assess the risks of material misstatement of the consolidated financial statements and of the combined management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinions. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 190 flatexDEGIRO AG • obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of the combined management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control or on the effectiveness of these arrangements and measures. • evaluate the appropriateness of accounting policies used by the Management Board and the reasonableness of estimates and related disclosures made by the Management Board. • conclude on the appropriateness of Management Board's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the combined management report or, if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern. • evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 191 flatexDEGIRO AG • obtain sufficient appropriate audit evidence regarding the financial accounting information of the entities or business activities within the Group to express audit opinions on the consolidated financial statements and on the combined management report. We are responsible for the direction, supervision and performance of the group audit of the consolidated financial statements. We remain solely responsible for our audit opinions. • evaluate the consistency of the combined management report with the consolidated financial statements, its conformity with German law, and the view of the Group's position it provides. • perform audit procedures on the prospective information presented by the Management Board in the combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the Managem ent Board as a basis for the prospective information and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also make a declaration to those charged with governance that we have complied with the relevant independence requirements and discuss with them all relationships and other matters that may reasonably be thought to bear on our independence, and, were relevant, the actions or safeguards taken against threats towards independence.
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 192 flatexDEGIRO AG From the matters discussed with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial state- ments of the current reporting period and are therefore the key audit matters. We de-scribe these matters in our auditor’s report unless law or other regulations preclude public disclosure about the matter. OTHER STATUTORY AND OTHER LEGAL REQUIREMENTS Report on the audit of the electronic reproductions of the consolidated financial statements and the combined management report prepared for disclosure purposes pursuant to Section 317 (3a) HGB Audit opinion In accordance with Section 317 (3a) HGB, we have performed a reasonable assurance audit to determine whether the data contained in the provided file "529900IRBZTADXJB6757-2024- 12-31-de.zip" (hereinafter also referred to as "ESEF documents") and prepared for the purpose of disclosure of the consolidated financial statements and the combined management report comply in all material respects with the electronic reporting format ("ESEF format") pursuant to Section 328 (1) HGB. In accordance with German legal requirements, this audit covers only the conversion of the information contained in the consolidated financial statements and the combined management report into the ESEF format and therefore does not extend to the information contained in these reproductions or to any other information contained in the aforementioned file. In our opinion, the reproductions of the consolidated financial statements and the combined management report contained in the provided file referred to above and prepared for disclosure purposes comply, in all material respects, with the requirements of Section 328 (1) HGB for the electronic reporting format. We do not express any opinion on the information contained in these reproductions or on the other information contained in the above- mentioned file beyond this opinion and our opinions on the accompanying consolidated financial statements and the accompanying combined management report for the financial year from 1 January 2024 to 31 December 2024 contained in the preceding "Report on the audit of the consolidated financial statements and of the combined management report".
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 193 flatexDEGIRO AG Basis for the audit opinion We conducted our audit of the reproductions of the consolidated financial statements and combined management report contained in the above-mentioned file provided in accordance with Section 317 (3a) HGB and the IDW Auditing Standard: Audit of Electronic Reproductions of Financial Statements and Management Reports Prepared for Disclosure Purposes in Accordance with Section 317 (3a) HGB (IDW PS 410 (06.2022)). Our responsibilities under those requirements are further described in the "Auditor's responsibilities for the audit of the ESEF documents" section. Our auditing practice has complied with the requirements of the IDW Quality Management Standard: Requirements for Quality Management in the Auditing Practice (IDW QMS 1) have been applied. Responsibility of the Management Board and the Supervisory Board for the ESEF documents The Management Board of the Company are responsible for the preparation of the ESEF documents with the electronic reproduction of the consolidated financial statements and the combined management report in accordance with Section 328 (1) sentence 4 no. 1 HGB and for the markup of the consolidated financial statements in accordance with § 328 (1) sentence 4 no. 2 HGB. Furthermore, the Management Board are responsible for the internal controls they have considered necessary to enable the preparation of the ESEF documents that are free from material non-compliance, whether due to fraud or error, with the electronic reporting format requirements of § 328 (1) HGB. The Supervisory Board is responsible for overseeing the preparation process of the ESEF documents as part of the financial reporting process. Auditor's responsibility for the audit of the ESEF documents Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material non-compliance, whether due to fraud or error, with the requirements of Section 328 (1) HGB. We exercise professional judgment and maintain professional skepticism throughout the audit. We also
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 194 flatexDEGIRO AG • identify and assess the risks of material non-compliance with the requirements of Section 328 (1) HGB, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinion. • obtain an understanding of internal control relevant to the audit of the ESEF documents in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of these controls. • evaluate the technical validity of the ESEF documentation, i.e., whether the provided file containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815, as applicable at the reporting date, regarding the technical specification for that file. • we assess whether the ESEF documents allow for a content identical XHTML reproduction of the audited consolidated financial statements and the audited combined management report. • assess whether the markup of the ESEF documents with inline XBRL technology (iXBRL) in accordance with Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, as applicable at the reporting date, enables an adequate and complete machine- readable XBRL copy of the XHTML reproduction. Further Information pursuant to Article 10 of the EU Audit Regulation We were elected as group auditors by the annual general meeting on 4 June 2024. We were engaged by the Supervisory Board on 14 August 2024. We have been the auditor of flatexDEGIRO Bank AG since the financial year 2019. We declare that the audit opinions expressed in this auditor's report are consistent with the additional report to the Supervisory Board pursuant to Article 11 of the EU Audit Regulation (long-form audit report). We have provided the following services, which were not disclosed in the consolidated financial statements or in the combined management report, in addition to the audit of the financial statements of the Group companies:
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 195 flatexDEGIRO AG • Audit of the securities services and custody business pursuant to Section 89 (1) WpHG for the period from 1 April 2023 to 31 March 2024 at flatexDEGIRO Bank AG • Agreed upon procedures in accordance with ISRS 4400 (Revised) in the form of an independent sample-based review of the reconciliation of cash and unit accounting between Stichtingen and DEGIRO at flatexDEGIRO Bank AG • Formal audit of the remuneration report of flatexDEGIRO AG pursuant to Section 162 (3) AktG • Audit support to accompany the implementation of sustainability reporting in accordance with CSRD/ESRS and the EU Taxonomy Regulation for the reporting year 2025 ending 31 December 2025 at flatexDEGIRO AG. OTHER MATTERS - USE OF THE AUDIT OPINION Our audit opinion should always be read in conjunction with the audited consolidated financial statements and the audited combined management report as well as the audited ESEF documents. The consolidated financial statements and the combined management report converted into the ESEF format - including the versions to be filed in the company register - are merely electronic reproductions of the audited consolidated financial statements and the audited combined management report and do not replace them. In particular, the ESEF report and our audit opinion contained therein can only be used in conjunction with the audited ESEF documents provided in electronic form. RESPONSIBLE AUDITOR The auditor responsible for the audit is Sandra Köhler. Frankfurt am Main, 14 March 2025 Baker Tilly GmbH & Co KG auditing company Prof. Dr Thomas Edenhofer Wirtschaftsprüfer (German Public Auditor) Sandra Köhler Wirtschaftsprüferin (German Public Auditor)
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Group Key Performance Indicators by Quarter
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 197 flatexDEGIRO AG Group Key Performance Indicators by Quarter Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2024 2023 Change in % Financials Revenues mEUR 123.0 118.7 111.7 126.7 98.3 90.8 101.4 100.2 480.0 390.7 +22.9 Commission income mEUR 74.8 66.1 64.1 77.0 68.0 52.7 58.9 55.4 282.0 235.0 +20.0 Interest income mEUR 43.8 47.8 44.1 44.7 26.6 32.4 38.3 39.0 180.5 136.3 +32.4 Other operating income mEUR 4.3 4.9 3.4 4.9 3.8 5.6 4.3 5.8 17.5 19.4 -9.8 Raw materials and consumables mEUR -18.9 -16.7 -16.1 -17.7 -16.7 -13.1 -21.8 -17.8 -69.3 -69.5 -0.2 Commission expenses mEUR -12.5 -13.4 -11.5 -11.7 -12.7 -10.5 -11.2 -10.6 -49.1 -45.0 +9.2 Interest expenses mEUR -2.8 -1.7 -3.2 -1.9 -2.8 -0.6 -8.7 -1.8 -9.7 -13.9 -30.4 Other operating expenses mEUR -3.6 -1.5 -1.3 -4.1 -1.3 -2.1 -1.8 -5.4 -10.5 -10.6 -0.7 Net revenue mEUR 104.1 102.1 95.6 108.9 81.6 77.6 79.6 82.4 410.7 321.3 +27.8 Net revenue margin in % 84.7 86.0 85.6 86.0 83.0 85.5 78.5 82.2 85.6 82.2 +4.1 Additional operating expenses mEUR -50.5 -49.2 -50.0 -58.6 -62.2 -48.5 -39.6 -30.5 -208.2 -180.9 +15.1 Pesonnel expenses mEUR -26.2 -26.5 -26.1 -37.1 -32.1 -26.0 -23.2 -16.2 -115.9 -97.4 +19.0 Current personnel expenses mEUR -24.9 -25.1 -24.7 -33.8 -21.5 -21.2 -22.0 -18.6 -108.4 -83.3 +30.1 Personnel expenses for long -term variable remuneration components mEUR -1.4 -1.4 -1.4 -3.3 -10.6 -4.8 -1.2 2.5 -7.5 -14.1 -46.9 Marketing expenses mEUR -11.5 -6.5 -6.2 -7.4 -17.2 -8.3 -4.5 -4.0 -31.6 -34.0 -7.1 Other administrative expenses mEUR -12.8 -16.2 -17.7 -14.1 -12.9 -14.2 -12.0 -10.4 -60.7 -49.5 +22.8 EBITDA mEUR 53.6 52.9 45.7 50.4 19.4 29.1 40.0 51.9 202.5 140.4 +44.3 EBITDA margin in % 43.6 44.5 40.9 39.8 19.7 32.1 39.4 51.8 42.2 35.9 +17.5
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Group Key Performance Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 198 flatexDEGIRO AG Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2024 2023 Change in % Depreciation mEUR -9.9 -10.5 -10.4 -14.9 -9.0 -7.6 -7.8 -11.6 -45.8 -36.0 +27.2 Financial result mEUR -0.7 -0.4 -0.5 0.5 -0.3 -0.4 -0.3 -0.3 -1.0 -1.3 -21.9 EBT mEUR 43.0 42.0 34.7 36.0 10.0 21.1 31.9 40.0 155.7 103.0 +51.1 EBT margin in % 35.0 35.3 31.1 28.4 10.2 23.3 31.4 39.9 32.4 26.4 +22.8 Income tax expenses mEUR -13.0 -11.1 -9.9 -10.1 -3.2 -7.9 -11.3 -8.7 -44.1 -31.2 +41.6 Consolidated net profit mEUR 30.0 30.8 24.9 25.8 6.8 13.2 20.6 31.3 111.5 71.9 +55.2 Consolidated net profit margin (profit margin) in % 24.4 26.0 22.3 20.4 6.9 14.6 20.3 31.2 23.2 18.4 +26.4 Additional key performance indicators T ransactions executed number (in m) 16.1 15.2 14.8 16.8 16.3 13.2 13.8 13.5 63.0 56.9 +10.9 New customer accounts (gross) number (in k) 121.2 84.6 92.0 123.6 112.4 73.6 77.4 77.4 421.5 340.9 +23.6
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Financial Calendar / Imprint
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Group Key Performanc e Indicators Letter from the Management Board Report of the Supervisory Board Combined Management Report Consolidated Financial Statements Further Information 200 flatexDEGIRO AG Financial Calendar Selected important dates 28 April 2025 Publication Q1/2025 Group Interim Management Statement 02 June 2025 Annual General Meeting 2025 28 August 2025 Publication H1/2025 Half-Year Report 2025 21 October 2025 Publication Q3/2025 Group Interim Management Statement ______________________________________________ The flatexDEGIRO AG share WKN FTG111 ISIN DE000FTG1111 Ticker symbol Bloomberg FTK:GR Ticker symbol Reuters ftkn.de Ticker symbol XETRA FTK Imprint Publisher flatexDEGIRO AG Omniturm, Große Gallusstraße 16 -18 60312 Frankfurt am Main Phone +49 (0) 69 4500010 ir@flatexdegiro.com Register number HRB 103516 Local Court Frankfurt am Main Investor Relations Achim Schreck ir@flatexdegiro.com More detailed information Further information is available on the co mpany website flatexdegiro.com. The website provides information on the share, news with current announcements, company reports and interim reports, the financial calendar and presentations. On t his website further service offers can be obtained. The reports are available in German and English. The German version is binding. For sustainability reasons, the annual and interim reports are not printed. All annual and interim reports are available to download online as PDF files.