Slide 1: The MLP Group – The partner for all financial matters
The MLP Group – The partner for all financial matters Dr. Uwe Schroeder-Wildberg, CEO July 2015
Slide 2: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 7 Key financials 2014 14 Impact of regulation 21 Outlook MLP 26 Page 2
Slide 3: The MLP Group at a glance
The MLP Group at a glance MLP Group The MLP Group The Partner for all financial matters | Private Clients – Companies – Institutional Investors MLP Finanzdienstleistungen AG FERI AG TPC GmbH The specialist in The investment expert for Dialog Partner occupational pension institutional investors and f
Slide 4: Consulting services throughout Germany for private, corporate and institutional clients
Consulting services throughout Germany for private, corporate and institutional clients MLP Group MLP: • Approximately 1,950 client consultants • Approximately 160 offices – at least one at every university location • Approximately 1,300 employees at company HQ and at local offices FERI: • Approxima
Slide 5: Main business areas
MLP Group – An Overview • More than 845,000 private clients in the mass affluent segment of the market target groups: graduates (i.e. physicians, solicitors, engineers and economists) Clients • Over 200 private clients in the HNWI market & over 5,000 corporate clients, employers and institutional cl
Slide 6: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 7 Key financials 2014 14 Impact of regulation 21 Outlook MLP 26 Page 6
Slide 7: MLP – Benefits for shareholders
MLP – Benefits for shareholders More diversified revenue mix and cost control 1 Stability Attractive dividend policy 2 Attractive ROI Stable shareholder structure 3 Consistency in strategy Page 7
Slide 8: Significant strengthening of the revenue base through strategic further development
Significant strengthening of the revenue 1 base through strategic further development Company pensions Wealth Management Real estate Broadening Non-life 2004 2006 2011 2015 Formation MLP acquires Start of Acquisition of DOMCURA Group of business division stake in FERI AG real estate offerings • Unde
Slide 9: Underwriting agency selects the appropriate insurer from the marketplace
Underwriting agency selects the 1 appropriate insurer from the marketplace Consultancy Underwriting agency Insurers (Sales commission) (Administration and additional (Risk margin) sales commission) disbursement Product sales Risk carrying Application Collection/ Contract Claim Claim Consulting + con
Slide 10: Administration costs reduced by more than €50 million – solid foundation for the future
Administration costs reduced by more than 1 € 50 million – solid foundation for the future Administrative costs* in € million 311.6 295.5 279.1 274.3** 256.8 255 251.6 250.6 * Definition: Personnel expenses, depreciation and amortisation and other operating expenses ** Adjusted to include one-off ex
Slide 11: Attractive dividend policy: pay-out ratio of 50% to 70%
Attractive dividend policy: 2 pay-out ratio of 50% to 70% Return on dividend in % 12 10 In the future, pay-out ratio of 50% to 70% of Group net profit 8 At the same time capital is required for: 6 4 • Acquisitions 2 • Investments • Capital management (Basel III) 0 2009 2010 2011 * 2012 2013 2014
Slide 12: Stable shareholder structure
Stable shareholder structure 3 WKN: 656 990 Share details ISIN: DE0006569908 Börsen: XETRA, Frankfurt, other regional exchanges Dr. h. c. Manfred Lautenschläger 23.53% HDI 9.48% Dr. h. c. Manfred Barmenia 6.67% Lautenschläger Allianz SE 6.27% Angelika Shareholder Angelika Lautenschläger 6.03% Lauten
Slide 13: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 7 Key financials 2014 14 Impact of regulation 21 Outlook MLP 26 Page 13
Slide 14: FY 2014: Total revenue rises to € 531.1 million
FY 2014: Total revenue rises to € 531.1 million Total revenue in Q4 Total revenue in FY 600 200 186.4 531.1 162.3 499.0 150 400 509.7 177.8 480.5 172.0 486.9 472,2 155.3 100 457.7 149.8 200 50 5.5 5.8 22.8 22.9 0 7.0 8.6 18.5 21.4 0 Q4 2013* Q4 2014 2013* 2014 Revenue Revenue: commissions and fees I
Slide 15: Upturn in old-age provision – new record in the wealth management
Upturn in old-age provision – new record in the wealth management Revenue in € million Q4 2014 Q4 2013* ∆ in % 2014 2013* ∆ in % Old-age provision 106.6 88.3 20.7 239.7 219.9 9.0 Wealth management 41.3 37.7 9.5 147.0 117,9 138.1 6.4 Health insurance 11.6 11.5 0.9 43.5 47.8 -9.0 Non-life insurance 5.
Slide 16: Continuingly difficult environment – MLP gains market share
Continuingly difficult environment – MLP gains market share New business in the market remains well below normal levels Market development MLP development Old-age provision: Old-age provision: Premium sum of new business in € billion Premium sum of MLP´s new business in € billion 160 4,5 4.8% 4 13.8
Slide 17: 27,900 new clients
27,900 new clients New clients (gross) Client consultants 1,998 30.000 , 2.000 , 1,944 1,952 27,900 26,300 25.000 , 20.000 , 1.500 , 15.000 , 10.000 , 1.000 , 2013 2014 31/12/2013 31.12.2013 30/09/2014 Q3 2014 31/12/2014 31.12.2014 Clients (overall): 830,300 847,600 Page 17
Slide 18: FY 2014: EBIT rose by 27 percent to € 39.0 million
FY 2014: EBIT rose by 27 percent to € 39.0 million Income statement Verwaltungskosten steigen aufgrund der angekündigten Investitionen leicht auf 256,8 Mio. € (2013: 250,6 Mio. €) in € million Q4 2014 Q4 2013* 2014 2013 2013* Total revenue 186.4 162.3 531.1 499.0 EBIT 29.6 20.5 39.0 30.7 Finance cos
Slide 19: Return on equity 7.8 percent
Return on equity 7.8 percent in € million 31/12/2014 31/12/2013* Intangible assets 156.2 155.3 • Equity ratio: Financial investments 145.3 146.1 23.2% (24.2%) Cash and cash equivalents 49.1 46.4 Other receivables and other assets 117.7 104.7 • Return on equity: 7.8% (6.4%) Shareholders’ equity 376.8
Slide 20: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 7 Key financials 2014 14 Impact of regulation 21 Outlook MLP 26 Page 20
Slide 21: Fundamental changes in the market
Fundamental changes in the market Trend Effects Client behaviour Fundamental scepticism on the part of clients towards the • Intense competition financial industry since the outbreak of the financial crisis • Quality of consulting services and differentiation Quick and inexpensive information po
Slide 22: Regulation strongly increased since 2004
Regulation strongly increased since 2004 EU Insurance Mediation Draft amending the EU Markets in Financial Implementation Directive (IMD) Instruments Directive (MiFID II) of MiFID II EU Markets in Financial Instruments Draft directive amending the EU Implementation Directive (MiFID) Insurance Mediat
Slide 23: Life Insurance Reform Act (LVRG) – Inducing possible future commission models
Life Insurance Reform Act (LVRG) – Inducing possible future commission models Modell 1 Modell 2 + 3 Unchanged acquisition commission & Commission distribution over the cancellation liability prolonged lifetime of the contract Cancellation liability AC AC 5 years 8/10 years Distributed acquisition co
Slide 24: Significant increase in consolidation within the market due to LVRG
Significant increase in consolidation within the market due to LVRG Number of insurance Effects of the Life Insurance intermediaries in Germany Reform Act (LVRG) 280.000 , • Quality of consultancy and 260.000 , portfolio will become even more 240.000 , important 220.000 , 200.000 , • Sale organisati
Slide 25: MLP's business model is well aligned for the altered market conditions
MLP’s business model is well aligned for the altered market conditions Success factors MLP • No own products – MLP selects from the ranges offered by relevant providers Client-centred • Leading training and further training, high quality consulting business model • Fulfilment of the highest regulato
Slide 26: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 7 Key financials 2014 14 Impact of regulation 21 Outlook MLP 26 Page 26
Slide 27: Continuation of the growth initiatives
Continuation of the growth initiatives Strategic focus Priorities • Expansion of the internet into an important interface for acquiring 1. new clients and stimulating interest among potential clients Online strategy • MLP financify established as heading when addressing young adults • Online sale of
Slide 28: Outlook: MLP anticipates EBIT above previous year's level
Outlook: MLP anticipates EBIT above previous year’s level Administrative costs* Sales revenue in € million In each case compared to the previous year The quota of commission 311.6 expenses/commission income will increase slightly due to 2015 295.5 the recruiting programme Revenue from 279.1 Stable d
Slide 29: Summary
Summary • MLP has targetedly further developed its business model in the past few years. • Despite operating in difficult markets, MLP ended 2014 on a high note and was able to increase its market shares. • Consolidation is now starting to gather momentum in Germany. • MLP is optimally positioned fo
Slide 30: Contact
Contact MLP Corporate Communications Alte Heerstr. 40 69168 Wiesloch Germany Jan Berg, Head of Corporate 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-ag.com Page 30
Slide 31: Appendix
Appendix Page 1 ® MLP
Slide 32: The MLP Group at a glance
The MLP Group at a glance The MLP Group is the partner for all financial matters – for private clients, companies and institutional investors. With our three brands, each of which enjoy a leading position in their respective markets, we offer a broad range of services: • MLP Finanzdienstleistungen A
Slide 33: Q1 2015 – Total revenue rises to € 130.9 million
Q1 2015 – Total revenue rises to € 130.9 million Total revenue Q1 [in € million] 150 130.9 Revenue 118.8 Revenue from 100 commissions and fees Interest income 120.3 125.9 112.8 107.1 Other revenue 50 5.6 5.8 5.0 6.0 0 Q1 2015 Q1 2014* * Previous year’s figure adjusted Page 33
Slide 34: Q1 2015 – Strong growth in wealth management
Q1 2015 – Strong growth in wealth management Revenue [in € million] Q1 2015 Q1 2014* ∆ in % Old-age provision 42.0 40.1 4.7 Wealth management 40.7 32.6 24.8 Health insurance 11.8 11.4 3.5 Non-life insurance 20.1 18.8 6.9 Loans and mortgages** 3.2 2.9 10.3 Other commissions and fees 2.5 1.3 92.3 Inte
Slide 35: Q1 2015 – Assets under Management reach € 29.0 billion
Q1 2015 – Assets under Management reach € 29.0 billion Assets under Management Premium sum: old-age provision [in € billion] [in € million] 30 29.0 28 27.5 700 630 26 24.4 24 600 570 22 20 500 18 16 400 14 12 10 300 31/03/2014 31/12/2014 31/03/2015 Q1 2014 Q1 2015 Page 35
Slide 36: Q1 2015 – Core capital ratio: 14.3 percent
Q1 2015 – Core capital ratio: 14.3 percent [in € million] 31/03/2015 31/12/2014 Intangible assets 154.0 156.2 Financial investments 175.9 145.3 • Equity ratio: 23.3% Cash and cash equivalents 52.5 49.1 • Core capital ratio: 14.3% Other receivables and other assets 98.4 117.7 Shareholders’ equity 378
Slide 37: Acquisition of the DOMCURA Group
Acquisition of the DOMCURA Group Business model Underwriting agency for private and commercial coverage concepts Expertise in the fields of development, job processing, issuing of policies, contract management, collection and claims processing Coverage fields: private non-life insurance, persona
Slide 38: DOMCURA – Key transaction data
DOMCURA – Key transaction data • The purchase price amounts to € 18 million, 66.6% paid directly (in cash) and 33.3% paid by means of a Purchase price capital increase through contributions in kind Purchase and • 41.6% with economic effect as of January 1, 2015 transfer of • 25.0% with economic effe
Slide 39: Considerable potential – both in the DOMCURA business and in cooperation with MLP
Considerable potential – both in the DOMCURA business and in cooperation with MLP Development of revenue DOMCURA (€ million)* 60 • Average growth in revenue of 7.6 % p.a. 55 • Importance of non-life insurance is growing throughout the market – small 50 brokers can no longer perform market 45 screeni
Slide 40: Significant advantages for DOMCURA business partners and MLP clients
Significant advantages for DOMCURA business partners and MLP clients MLP clients (private and corporate) DOMCURA business partners • Client support processes, services and • Business model is secured in the long contract processing will be further improved term and can be considerably expanded throu