Slide 1: Financial Results 2018
Financial Results 2018 Wiesloch, February 28, 2019
Slide 2: 2018: Successful development and strong investment in the future
2018: Successful development and strong investment in the future Financial targets met and, at the same time, strong investment in future growth Total revenue increased to € 666.0 million – the highest level in the Group structure since the sale of our own insurers; at € 46.4 million, EBIT is we
Slide 3: Accelerated drop in the number of intermediaries operating in the market
Accelerated drop in the number of intermediaries operating in the market Registered insurance intermediaries 300.000 300,000 263,452 257,795 253,401 246,776 250.000 250,000 240,297 233,430 228,289 220,825 201,643 200.000 200,000 150.000 150,000 100.000 100,000 50.000 50,000 0 01/2011 01/2012 01/2013
Slide 4: MLP's capacity to adapt demonstrated
MLP's capacity to adapt demonstrated Commission income FY 2005 Commission income FY 2018 80% Consulting fields excl. old- Average growth age provision 30% outside the 20% 65% Old-age old-age provision 34% 66% area of 12.1 % p. a. provision Recurring revenue Page 4 February 28, 2019 Financial Results
Slide 5: FY 2018: Total revenue at highest level in the Group structure since the sale of our own insurers
FY 2018: Total revenue at highest level in the Group structure since the sale of our own insurers Total revenue FY In € million 666.0 700 666.0 628.2 629.8 595.2 610.4 628.2 588.5 624.8 600 563.9 563.6 554.3 532.1 522.6 545.5 531.1 589.9 499.0 500 Revenue 642.1 400 608.7 Commission income 300 Intere
Slide 6: FY 2018: Growth in all consulting fields
FY 2018: Growth in all consulting fields Revenue 2018 In € million Revenue breakdown FY 2018: Old-age provision Real estate brokerage FY: 212.3 (208.1) +43.6 +2.0% FY: 20.1 (14.0) Q4: 89.6 (86.1) | +4.1% % Q4: 5.5 (2.9) | +89.7% Wealth management 31.5% 33.1% Loans and mortgages* FY: 202.0 (190.6) +6
Slide 7: Successful new business in the old-age provision area
Successful new business in the old-age provision area – assets under management above previous year Premium sum of new business in the old-age provision area Assets under management MLP Group In € billion In € billion 4 36 3.61 34.5 3.41 33.9 32 31.5 29.0 2 28 27.5 24 0 20 2017 2018 2014 2015 2016 2
Slide 8: Growth in family clients, as well as corporate and institutional clients
Growth in family clients, as well as corporate and institutional clients Family clients Corporate and institutional clients 22,000 22.000 550.000 550,000 541,200 20,900 529,100 525.000 525,000 20.000 20,000 19,800 517,400 19,200 500.000 500,000 18.000 18,000 475.000 475,000 2016 2017 2018 16.000 16,
Slide 9: FY 2018: EBIT well within the target corridor
FY 2018: EBIT well within the target corridor Income statement In € million Q4 2017 Q4 2018 2017 2018 Total revenue 187.5 203.4 628.2 666.0 Operating EBIT* 25.3 23.5 46.7 46.4 EBIT 23.0 23.5 37.6 46.4 Finance cost -0.5 0 -1.2 -0.6 EBT 22.5 23.5 36.4 45.8 Taxes -5.8 -6.4 -8.6 -11.3 Net profit 16.7 17
Slide 10: Return on equity increased to 8.5 percent
Return on equity increased to 8.5 percent In € million Assets Dec. 31, 2017 Dec. 31, 2018 Intangible assets 161.8 155.9 Equity ratio: 17.5 % Financial assets 158.5 165.3 Receivables from clients in the banking business 702.0 761.0 Return on equity: 8.5 % Receivables from banks in the banking busines
Slide 11: Net liquidity of around EUR 225 million
Net liquidity of around EUR 225 million As of December 31, 2018 In € million 2.500 2.000 158 1.500 1,625 1,455 1.455 1.000 500 82 82 82 231 386 386 386 386 456 225 225 0 Cash and cash Financial investments <1 Receivables from banking Other receivables Liabilities due to the Short-term provisions and
Slide 12: Executive Board proposes a dividend of 20 cents per share
Executive Board proposes a dividend of 20 cents per share Dividend per share In € cents 20 20 20 Compensation for 17 one-off expenses 16 4 associated with 15 further optimisation 12 of the Group structure 10 8 16 Net profit 5 0 2013 2014 2015 2016 2017 2018 Payout ratio 68% 63% 56%* 60% 64%** 63% *B
Slide 13: Ongoing strengthening of the university segment
Ongoing strengthening of the university segment Applications to Outlook for 2019: work as MLP 5 regional Further 67 university consultants more managers with dynamism team leaders than doubled in sales experience anticipated in acquired 2018 compared appointed hiring of new to the previous consultan
Slide 14: First growth in consultant numbers since 2007
First growth in consultant numbers since 2007 Net year-on-year development in consultant numbers 40 19 20 Offer for those with professional 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 experience joining MLP 0 -3 2018 -20 -9 • Fast entry: Easier recognition of prior -40 -30 -31 qualifications -
Slide 15: Strategic agenda 2019
Strategic agenda 2019 1 2 3 Continued cost Strategic focus Organic growth Inorganic growth management • Strengthening of the university The MLP Group continues to target • Ongoing efficiency management on segment in the private client business: acquisitions and is open for opportunities the cost bas
Slide 16: Consistent implementation of digitalisation strategy
Consistent implementation of digitalisation strategy Intelligent combination of face-to-face consulting and digital services Already implemented In planning / implementation Paperless Luggage "VEM Guide" application insurance on wealth process for blockchain management wealth Employer Web basis cons
Slide 17: Further broadening of revenue basis
Further broadening of revenue basis Drivers and impulses for 2019 Wealth management Non-life insurance Real estate brokerage Proportion of sales revenue (in percent): FERI DOMCURA MLP private client business • Building on successful • Successful, very close support • Extended brokerage portfolio, de
Slide 18: Strategic agenda 2019
Strategic agenda 2019 1 2 3 Continued cost Strategic focus Organic growth Inorganic growth management • Strengthening of the university The MLP Group continues to target • Ongoing efficiency management on segment in the private client business: acquisitions and is open for opportunities the cost bas
Slide 19: Cap on commissions prevents fair competition
Cap on commissions prevents fair competition Brokers must cover the majority of their expenses from commission Financed from commission for Financed from commission for Expenses broker sales tied agent sales Acquisition payment ✔ ✔ Initial qualification for brokers ✔ Further training for brokers ✔ P
Slide 20: Outlook for the financial year 2019
Outlook for the financial year 2019 Qualitative assessment of revenue development Earnings trend very positive: ++, positive: +, neutral: 0, negative: -, very negative: -- In € million 60 Old-age provision 0 50 46.7* 46.4 40 35.1* 9.1 Wealth management + 30.7 30 15.4 20 37.6 Health insurance 0 10 19
Slide 21: Summary
Summary Permanent further development successfully advanced in 2018 Focus in 2019 also on further digitalisation initiatives, ongoing diversification of our revenue basis, as well as intensified acquisition of new consultants Despite repeated comprehensive investments in the future: Slight inc
Slide 22: Contact
Contact MLP Corporate Communications Alte Heerstr. 40 69168 Wiesloch Germany Frank Heinemann Head of External Communications Andreas Herzog Head of Investor Relations and Financial Communications Tel.: +49 (0) 6222 308 8320 Fax: +49 (0) 6222 308 1131 investorrelations@mlp.de www.mlp-se.de Page 22