OVB : Remuneration report 2023 of OVB Holding AG

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

Content

Remuneration report according to Section 162 AktG
of OVB Holding AG for financial year 2023	03
A.	Review of financial year and compensation year 2023	03
A.1.	Approval of the remuneration report 2022 by the Annual General Meeting	03
A.2.	Personnel matters - Executive Board	03
A.3.	Approval of the Executive Board remuneration policy by the Annual General Meeting	03
A.4.	Application and date of application of the remuneration policy	03
A.5.	Business performance of OVB Holding AG in 2023	03
B.	Remuneration of the members of the Executive Board	04
B.1.	Overview of the Executive Board remuneration policy in financial year 2023	04
B.2.	Target remuneration and remuneration ceiling	05
B.2.1.	Target remuneration	05
B.2.2.	Remuneration ceiling	06
B.3.	Separate remuneration components and amounts of Executive Board
	remuneration for financial year 2023	07
B.3.1.	Non-performance-based remuneration	07
B.3.2.	Variable remuneration	07
B.3.2.1. Short-term variable remuneration (short-term incentive, STI)	07	2
B.3.2.2. Long-term variable remuneration (long-term incentive, LTI)	09
B.3.2.3. Benefits linked to the termination of employment	10
B.3.2.4.	Severance cap	10
B.4.	Contributions to a defined benefit pension fund with congruent reinsurance coverage	10
B.5.	Remuneration paid and owed with respect to financial year 2023	10
B.6.	Review of appropriateness of Executive Board remuneration	12
B.7.	Outlook financial year 2024	12
C.	Remuneration of the members of the Supervisory Board	12
C.1.	Review of compensation year 2022	12
C.2.	Supervisory Board remuneration policy	12
C.3.	Amounts of Supervisory Board remuneration for financial year 2023	13
D.	Comparative presentation of the development of remuneration and earnings	13
E.	Other information	14
Auditor's Report	15

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

The remuneration report for financial year 2023 provides information about the individual remuneration of the acting and former members of the Executive Board and the Supervisory Board of OVB Holding AG. It includes detailed information on the remuneration policy necessary for an understanding of the data, the remuneration of the services of the Executive Board members, the remuneration of the Supervisory Board members and explanations how the remuneration promotes the long-term development of OVB Holding AG.

report with a vast majority of 99.99 per cent. Due to the high approval rate on this agenda item, there were no grounds for adjustments to reporting.

A.2. Personnel matters - Executive Board

The Executive Board of OVB Holding AG has three mem- bers. The composition of the Executive Board remained unchanged in financial year 2023.

The remuneration report has been jointly prepared by the Executive Board and the Supervisory Board and meets the requirements of Section 162 AktG (German Stock Corporation Act). The Company has decided to have the report audited with respect to its content as well, thus beyond the scope stipulated by Section 162

1. sentences 1 and 2 AktG, by the auditor, Pricewater- houseCoopers (PwC). The audit certificate prepared by the auditor, summarising the findings of the audit, is annexed to this report in full. The remuneration report at hand will be submitted to the Annual General Meeting of OVB Holding AG on 12 June 2024 for approval.

Detailed information on the remuneration policies for the members of Executive Board and Supervisory Board of OVB Holding AG are available on the Company's web- site [www.ovb.eu/english/investor-relations/corporate-­governance]. The remuneration report and the audit certificate on the auditor's content audit are available for download on the website of OVB Holding AG as well (https://www.ovb.eu/english/investor-relations/­corporate-governance).

Rounding may have the effect that individual numbers stated in this report will not add up exactly to stated totals and that percentages stated will not exactly reflect the absolute values they refer to.

A.3. Approval of the Executive Board remuneration policy by the Annual General Meeting

The remuneration policy in effect during the reporting period was adopted by the Supervisory Board of OVB Holding AG on 18 March 2022 after having been prepared by the Nomination and Remuneration Commit- tee. It was approved by the Annual General Meeting of 15 June 2022 as agenda item 7 with a majority of

99.99 per cent. According to Section 120a (1) AktG, the general meeting of shareholders of a listed compa- ny shall adopt a resolution on the approval of the remu- neration policy for executive board members submit-

ted by the supervisory board upon any material	3
amendment to the remuneration policy and at least
every four years.

A.4. Application and date of application of the remuneration policy

The Supervisory Board has implemented the new remuneration policy retroactively as of 1 January 2022 and reconciled the employment contracts of thecurrent Executive Board members with the new policy by way of adjustments. The Executive Board remuneration policy was applied for all current members of the Executive Board in financial year 2023.

A. Review of financial year and

­compensation year 2023

A.1. Approval of the remuneration report 2022 by the Annual General Meeting

The remuneration report for financial year 2022 prepared and audited in accordance with Section 162 AktG was submitted to the Annual General Meeting of 14 June 2023 as agenda item 7 for approval. The Annual General Meeting approved the remuneration

A.5. Business performance of OVB Holding AG 2023

The year 2023 as a whole continued to be characterised by geopolitical tensions. While the Russian war of aggression in Ukraine continues, another war has started in the Middle East since the Hamas terrorist attack on Israel on 7 October 2023. For private households, the high inflation rates mean that less money is available for security and provision after deducting essential expenses. In addition, climate change remains a cause for concern. Against the backdrop of thoroughly challenging political and economic conditions, OVB Holding AG managed once again to generate record brokerage income in 2023, now for the fourth time in a row.

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

The Group recorded sales growth of 6.7 per cent to Euro 354.3 million. The operating result (EBIT) came to Euro 17.8 million after Euro 22.0 million in the previous year due to inflation-related cost increases. Thanks to the prudent management by the Executive Board and the extraordinary commitment of the financial advisors and employees, OVB Holding AG performed well once again.

B. Remuneration of the members of the Executive Board

The remuneration of the members of the Executive Board is composed of non-performance-based, performance -based and other remuneration components. These include:

• non-performance-based:base salary, fringe benefits and contributions to individual retirement provision
• performance-based:short-term variable remuneration (short-term incentive, STI) and long-term variable remuneration (long-term incentive, LTI)
• other components: commitments in the event of termination of Executive Board membership

B.1. Overview of the Executive Board remuneration policy in financial year 2023

The remuneration policy for the Executive Board of OVB Holding AG is oriented towards the Company's sustained and long-term development and is aligned with the economic situation and future prospects of the Company as well as the individual performances of each Executive Board member. The Supervisory Board of OVB Holding AG is responsible for the arrangement of the remuneration policy.

Executive Board remuneration policy 2023

The following table offers a comprehensive overview of the components of the remuneration policy applicable for Executive Board members in financial year 2023, the arrangement of the separate remuneration components and the respective objectives these components are based on.

Remuneration components	Objectives	Arrangement	4

Non-performance-based remuneration

Basa salary

Fringe benefits

Retirement provision

Aligned with the scope of responsibilities of the respective Executive Board member; adequate base income and adequate fringe benefits as the foundation of a competitive and customary remuneration package intended to prevent inadequate risk taking

Adequate provision for retire- ment, disability and surviving dependents as the foundation of a competitive and customary remuneration package

• annual base salary
• monthly payment in twelve equal installments
• CEO: EUR 450 thousand
• CFO: EUR 255 thousand
• COO: EUR 222 thousand

Company car use (or compensation thereof), provision of communication devices, insurance premium payments (term life insurance, accident insurance), contributions to pension schemes and health insurance, savings plan pay- ments, contributions for secondary residence

Annual contribution of a fixed amount to a defined benefit pension fund covered by congruent reinsurance (including disability and survivors' pension):

• CEO: EUR 199 thousand
• CFO: EUR 83 thousand
• COO: EUR 62 thousand

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

Remuneration components	Objectives	Arrangement
Performance-based
remuneration

One-year variable remuneration (annual bonus, STI)

Multi-year variable remuneration (LTI)

Securing and increasing the Company's success and shareholder value; long-term strengthening of profitability and market position; consideration of the overall responsibility of the Executive Board; promoting the Executive Board members' individual performances; focusing on the Group's key performance indicators

Safeguarding the Company's sustained development

• EBIT: target/actual comparison (40 %)
• brokerage income: target/actual comparison (20 %)
• other individual and operational targets (20 %)
• individual qualitative business and sustainability targets (20 %)
• Target amount at 100 % target achievement 2023:
• • CEO: EUR 135 thousand
  • CFO: EUR 77 thousand
  • COO: EUR 67 thousand
• cash payment
• EBIT: moving Ø of the actuals achieved in the last 2 financial years as well as the budgeted amount for the current financial year (70 %)
• brokerage income: moving Ø of the actuals achieved in the last 2 financial years and the budgeted amount for the current financial year (30 %)
• Target amount at 100 % target achievement in 2023:
• • CEO: EUR 165 thousand
  • CFO: EUR 94 thousand
  • COO: EUR 81 thousand
• cash payment

Benefits in the event of termination of employment

Consensual termination

Preventing inappropriately high	Severance limited to remaining term of employment con-
severance payments	tract or rather no more than twice the annual remunera-
	tion (severance cap)

Other remuneration provisions			5
Maximum remuneration
Preventing uncontrolled high	Cap on variable remuneration at reaching the ceiling
according to Section 87a (1)	payments	defined for one financial year:
sentence 2 no. 1 AktG		- CEO: EUR 1,300 thousand
		- CFO: EUR 750 thousand
		- COO: EUR 750 thousand

B.2. Target remuneration and remuneration ceiling

B.2.1. Target remuneration

The respective target remuneration amounts have been determined for each Executive Board member in accordance with the remuneration policy. In defining remuneration components, the Supervisory Board took into consideration the responsibilities and functions of each member of the Executive Board and thus also the different requirements directed at the respective Executive Board member. The Supervisory Board also particularly factored into its decision the Company's economic situa- tion, market environment and future prospects.

Total target compensation encompasses all remuneration components and is the total of any given year's remuneration amounts in case of target achievement at one hundred per cent. As the total target compensation applies only upon the achievement of all predefined tar- gets, it offers an incentive for the Executive Board mem- bers' performances and thus also for a strong business performance. An overachievement of the predefined targets can lead to an increase in total remuneration which however is limited by the respectively determined remuneration ceiling (B.2.2).

The following table shows the individual total target remuneration of each Executive Board member as well as the separate remuneration components of the total target remuneration. The percentages indicating the

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

relative share of the remuneration components in total target compensation can be found in the table in brackets after the corresponding amounts.

Target remuneration for financial year 2023 EUR'000 (%)

Remuneration component

Base salary

Fringe benefits

One-year variable remuneration (STI)

Multi-year variable remuneration (LTI)

Retirement provision (annual benefits)

Target total remuneration

Mario Freis

CEO

1. (46.3)

22.0 (2.3)

1. (13.9)

1. (17.0)

1. (20.5)

970.9 (100.0)

Frank Burow

CFO

1. (46.6)

38.5 (7.0)

1. (14.0)

1. (17.1)

1. (15.3)

547.0 (100.0)

Heinrich Fritzlar

COO

1. (46.5)

45.2 (9.5)

1. (14.0)

1. (17.0)

1. (13.0)

477.4 (100.0)

B.2.2. Remuneration ceiling

In accordance with Section 87a (1) sentence 2 no. 1 AktG, the Supervisory Board has provided for a binding maximum remuneration (remuneration ceiling) in

the remuneration policy with respect to the annual total remuneration of each individual Executive Board member, comprising all non-performance-based and performance-based remuneration components.

The remuneration ceiling thus represents a total ceiling amount for the individual Executive Board members and corresponds to the maximum accrual of funds for the respective financial year. The following table depicts the remuneration ceiling of the individual ­Executive Board members for financial year 2023.

6

Remuneration ceiling of Executive Board members 2023

EUR'000

Current Executive Board members

Former Executive Board members

Remuneration component

Base salary

Fringe benefits

Ceiling one-year variable remuneration − target range: 150 % max.−

Ceiling multi-year variable remuneration (bonus account)

− target range: 200 % max. −

Retirement provision (annual benefits)

Non-compete compensation*

Mario Freis

CEO

450.0

22.0

202.5

330.0

198.9

Frank Burow

CFO

255.0

38.5

114.8

187.0

83.5

Heinrich Fritzlar

COO

222.0

45.2

100.5

162.0

62.2

Thomas Hücker former COO (until 31/05/2022)

0.0

0.0

29.1

233.7

0.0

158.3

Remuneration ceiling (maximum remuneration amount)

1,300.0

750.0

750.0

750.0

• The Company has committed itself to pay monthly non-compete compensation of EUR 31.7 thousand to the previous COO, who left the Company as of 31 May 2022, for the duration of the post-contractualnon-compete covenant.

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

Compliance with the remuneration ceiling in financial year 2023 and the previous year 2022 can only be reviewed or rather safeguarded in the year 2026 or rather 2025 as only then the final remuneration component for financial year 2023 and the previous year 2022 will be determined and accrued by the members of the Executive Board. The former COO has accrued remuneration in the amount of EUR 421.1 thousand for financial year 2023 (including non-compete com- pensation), compliant with the remuneration ceiling determined for financial year 2023. The former COO accrued EUR 505.0 thousand for financial year 2022 (including non-compete compensation), compliant with the remuneration ceiling (of EUR 750 thousand) determined for 2022 as well.

B.3 Separate remuneration components and amounts of Executive Board remuneration for financial year 2023

B.3.1 Non-performance-based remuneration

Fixed non-performance-based remuneration components include base salary, fringe benefits and retirement provision.

Fringe benefits contain the use of company cars (or compensation thereof), the provision of communication devices and technology, the payment of insurance premiums (term life insurance, accident insurance), contributions to pension schemes and health insurance as well as savings plan payments or contributions for secondary residence generally all Executive Board members are equally entitled to yet subject to different amounts depending on each member's personal situation.

The Executive Board members also receive contributions to a defined benefit pension fund with congruent reinsurance coverage in support of the Executive Board member and his or her surviving dependents. Further information on this can be found in chapter B.4 »Contri- butions to a defined benefit pension fund with congruent reinsurance coverage«.

B.3.2. Variable remuneration

Variable performance-based remuneration consists of short-term variable remuneration (short-term incen- tive, STI) and long-term variable remuneration (long- term incentive, LTI).

Both components are linked to the Executive Board's performance and aim at the sustained increase in shareholder value and a performance-based corporate management.

They are intended to promote the Executive Board's orientation towards long-term and sustainable man- agement. For this reason, the share of multi-year performance -based remuneration components is relatively high. At the same time, the responsibilities and the performances of the Executive Board as a whole and of each of its members are taken into consideration.

B.3.2.1 Short-term variable remuneration

(short-term incentive, STI)

The STI is aligned with OVB Group's financial, business, operational and strategic successes achieved over the financial year. Prior to the beginning of each financial year, the Supervisory Board considers the recommendations of the Nomination and Remuneration Committee and determines the specific performance criteria, indicators and focus topics including the methods for performance evaluation based on corporate budgeting prepared by the Executive Board and approved by the Supervisory Board and defines the components' respective shares in the STI.

OVB Holding AG prioritises securing and increasing the business success as well as the shareholder value in all aspects of relevance. Profitability and market position of OVB Holding AG are thus intended to be

strengthened for the long term. Profitable and efficient7 management is also meant to be incentivised.

Apart from classic earnings indicators, objectives that are essential for the Company's sustained development such as the implementation of the corporate strategy, the development of new business areas and markets or an optimisation of the current market position are taken into account in particular. Sustainability targets are also accounted for. The performance criteria are determined on the basis of suitable key indicators established in the Company. The Supervisory Board ascertains that its definition of targets is challenging and ambitious.

Quantitative targets account for 80 per cent of the STI, qualitative targets amount to 20 per cent. The relative composition provides for 40 % for the operating result (EBIT), 20 per cent for brokerage income (sales), 20 per cent for other financial and operational targets and another 20 per cent for qualitative targets with one sustainability target among them. The target corridor for the annual bonus ranges from 75 per cent to 150 per cent of the STI.

In the first Supervisory Board meeting after the end of the financial year, the actual STI target achievement of each Executive Board member was established by the Supervisory Board on the basis of the adopted annual financial statements.

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

The following table depicts the achievement of the

STI target criteria in financial year 2023:

Rel-

Target value

Target

Presentation of performance criteria

ative

(100 % target

Actual

achievement

for STI 2023

share

achievement)

FY 2023

in %

OVB Holding AG

(CEO, CFO and COO)

EBIT Group 2023

40 %

18.2

17.8

98.0

(EUR million)

Brokerage income Group 2023

20 %

345.7

354.3

102.5

(EUR million)

Adjusted operating expense ratio

10 %

30.0

30.3

99.0

Group (per cent)

Expansion of productivity in sales

10 %

Expansion of sales capacity

128.0

of OVB Germany

Sustained corporate development

10 %

Evaluation/Positive feedback to

125.0

based on strategy »OVB Excellence

presentation to the Supervisory Board

2027«

in 09/2023

Assessment criteria are among

others the implementation of the

strategy, particularly with respect to

its sustainability promoting strategic

measures

Mario Freis,

Sustained expansion of the sales

10 %

Further expansion of digital platforms

125.0

CEO

force

such as »Personal Development« and

Assessment criteria are among

»Leadership Control« optimises the

induction of new financial advisors;

8

others further qualitative strategic

sales executives are supported in their

measures for the sustained expan-

management functions even more

sion of the financial advisor base

systematically

Frank Burow,

Guaranteeing a proper compliance,

10 %

Further development of the compli-

125.0

CFO

risk and internal control manage-

ance management system (Compli-

ment system

ance 2.0), further development of

One of the assessment criteria is

the ICS based on software support

(accountability of effectiveness)

the further improvement of the risk

position

Heinrich Fritzlar,

Structured further development of

10 %

Introduction of OVB EASY in PL, DE

75.0

COO

high COO performance in the core

and FR, among other things, and

topics IT, Operations and HR

optimisation of the current versions

through »EASY Excellence«, imple-

mentation of a centralised procure-

ment management for optimising the

purchasing process

The STI for this financial year resulting from the achievement of the target criteria in financial year 2023 is presented in the following table:

Amount of annual bonus (STI) in financial
year 2023	Target achievement in %
Executive Board
Mario Freis, CEO	107.4
Frank Burow, CFO	107.4
Heinrich Fritzlar, COO	102.4

2023, EUR'000

145.0

82.2

68.6

Full consideration of the performances rendered over the period from 1 January 2023 to 31 December 2023 entails that the payment of the aforementioned amounts

can only be made after the end of the year under review. The STI amounts disclosed in the table reflect the accruals in financial year 2024.

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

B.3.2.2 Long-term variable remuneration (long-term incentive, LTI)

With respect to long-term variable remuneration (long- term incentive, LTI), earnings targets are intended to be achieved over a longer period of time for the purpose of safeguarding the Company's sustained development. Share-based payment is not provided for. Remuneration is meant to be based solely on factors the Executive Board is able to influence.

In order to be able to adequately consider the performances of each Executive Board member and the ­Executive Board as a whole, the LTI is paid as key indicator-based remuneration referring to a three-year performance period and administered as an individual balance within the framework of a bonus account. A penalty rule applies to long-term variable remuneration.

The LTI is based on two financial targets representing two key performance indicators of OVB Holding AG (operating result (EBIT) and the Group's brokerage income). The relative shares are 70 per cent for the operating result and 30 per cent for brokerage income.

Prior to the beginning of each financial year, the LTI target amount is determined.

The basis of calculation of the financial year's LTI is ­derived from the moving average of the actuals achieved over the last two financial years and the achievement of the budgeted value in the financial year. From target achievement of 80 per cent up to 200 per cent, the achieved bonus amount is credited to the bonus account. Target achievement of between 60 per cent and 79.99 per cent does not impact the balance in the bonus account.

If the target achievement level is below 60 per cent (between 0 and 59.99 per cent target achievement), the so far accumulated balance in the bonus account is reduced by the respective negative amount (penalty rule).

At the first Supervisory Board meeting after the end of the financial year, the actual LTI target achievement of each Executive Board member is established by the Supervisory Board.

The balance in the bonus account remaining after allocation to the account or offsetting against the penalty is paid at one third of the balance respectively in the following year together with the STI after the close of the Annual General Meeting. The following table shows the achievement of the LTI target criteria in financial year 2023:

				Bonus account target			9
				(100 % target	Annual
	Performance	Annual result	achievement)	target	Bonus claim
Financial year	criterium	EUR million	EUR million	EUR million	%
2023	EBIT	17.8	20.7	18.2		84.5 %
	Brokerage income	354.3	332.8	345.7		106.2 %

The bonus account target is calculated as the moving average of the actuals achieved over the last two ­financial years and the budgeted value for the financial year.

The bonus claim is determined according to the following formula: Bonus claim = 1 + (annual result - bonus account target) / annual target.

Based on the agreed targets and target achievement in financial year 2023, the resulting annual LTI bonus payments to the individual Executive Board members come to the following amounts:

LTI bonus payments for financial year 2023	Actual target achievement in %	Annual LTI bonus payment 2023
(allocation to LTI bonus account)	for financial year 2023	(for performance in 2023), EUR'000
Executive Board
Mario Freis, CEO	91.0	150.2
Frank Burow, CFO	91.0	85.1
Heinrich Fritzlar, COO	91.0	73.7

Remuneration report according to Section 162 AktG of OVB Holding AG for financial year 2023

The annual bonus disclosed in the table above reflect the respective amount allocated to the LTI bonus account as individual balance based on actual target achievement in financial year 2023. One third of that amount is paid out as LTI component from financial year 2023 in 2024, two thirds remain as balance in the LTI bonus account for payment in the two following years, subject to the penalty rule.

B.3.2.3 Benefits­ linked to the termination of employment

In case of termination of an Executive Board member's employment contract, outstanding variable remuneration components due for the period up to termination of the contract are paid in the following year. The remaining balance in the bonus account as of termination of Executive Board membership is offset against the LTI target achievement amount of the previous financial year. The entire payment of the existing balance in the bonus account is also made in the following year after adoption of the annual financial statements.

B.3.2.4. Severance cap

In case of premature termination of Executive Board membership and consensual termination of the employment contract, the total amount of the benefits to be paid to the respective Executive Board member by the Company within the framework of such an agreement is limited to the amount of the total remuneration owed by the Company for the initially remaining term of the employment contract and cannot exceed the amount of twice the annual remuneration.

Commitments for benefits to Executive Board members in the event of premature termination of Executive Board membership as a result of a change of control are not part of the employment contracts concluded.

Payments to a former Executive Board member

Thomas Hücker, who left the Executive Board of OVB Holding AG in 2022, received payments in the amount of EUR 421.1 thousand in the year 2023. This total is composed of a monthly non-compete compensation for the duration of the post-contractualnon-compete covenant (until May 2023) in the amount of EUR 158.3 thousand, 5/12 of the short-term performance targets (STI) and long-term performance targets (LTI) for the year 2022 in the amount of altogether EUR 29.1 thousand and the outstanding variable remuneration components of the bonus account (LTI) for previous years in the amount of EUR 233.7 thousand, paid out after the exit in the following year 2023 as per general practise.

B.4 Contributions to a defined benefit pension fund with congruent reinsurance coverage

The Executive Board members receive contributions to a defined benefit pension fund with congruent reinsurance coverage in support of the Executive Board member and his or her surviving dependents. In fulfillment of that pension commitment, the Company makes contribu-

tions paid either in 12 monthly installments, annually or10 semi-annually to the pension fund. The amounts of such

payments are determined individually. The amounts of the respective commitments for financial year 2023 are disclosed in the following table.

Annual contributions to pension fund	2023, EUR'000
Executive Board
Mario Freis, CEO	198.9
Frank Burow, CFO	83.5
Heinrich Fritzlar, COO	62.2

B.5 Remuneration paid and owed with respect to financial year 2023

The following table contains a list of remuneration paid and owed to all acting members of the Executive Board of OVB Holding AG.

Paid remuneration is the remuneration of the financial year in which the services on which the remuneration is based have been fully performed.

Owed remuneration is such remuneration which is due but has not been paid yet.

Fixed remuneration components stated in the table correspond to the paid base salary and the fringe benefits accrued.

The short-term variable remuneration (short-term incentive, STI) disclosed in the table corresponds to the remuneration for which the underlying services have