Mlp Se · XETR:MLP
Mlp — Non-Deal Roadshow (May 2017)
39 slides from Mlp's roadshow presentation, May 2017
Slide 1: The MLP Group – The partner for all financial matters
The MLP Group – The partner for all financial matters , Management Roadshow
Slide 2: The MLP Group: agenda
The MLP Group 1. MLP at a glance 2. Key Financials 3. Strategy & Outlook 4. Appendix Page 2 Management Roadshow
Slide 3: The MLP Group at a glance
The MLP Group at a glance The MLP Group The Partner for all financial matters | Private Clients – Companies – Institutional Investors MLP Finanzdienstleistungen AG FERI AG DOMCURA AG TPC GmbH The investment expert for The underwriting agency, The Partner for all The specialist in occupational instit
Slide 4: Main business areas
MLP Group – An Overview • Around 519,800* private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, Clients solicitors, engineers and economists) • Around 19,300* corporate and institutional clients *as of March 31, 2017 Brokered premium sum for
Slide 5: Attractive dividend policy & stable shareholder structure
Attractive dividend policy & stable shareholder structure 11.8% Pay-out ratio: Return on 50% - 70% of net profit dividend: 6.4% Dividend policy Profit retention required for: 4.0% 3.1% 4.6% 3.3% - Acquisitions 1.9%* - Capital expenditure *influenced by one-off - Capital management (Basel III) expens
Slide 6: Market environment – Fundamental changes taking place
Market environment – Fundamental changes taking place Trend Effects Client behaviour • Intense competition Fundamental scepticism on the part of clients towards the financial industry • Quality of consulting services and differentiation since the outbreak of the financial crisis from the competiti
Slide 7: Market environment remains difficult – Sector-specific key indicators
Market environment remains difficult – Sector-specific key indicators Persons holding comprehensive Premium sum Number of new private health insurance new old-age provision business old-age provision contracts million € billion in thousand 160 5.500 9,00 5,114 8.79 8.77 4,933 150 147.7 145.5 8,60 14
Slide 8: Significant increase in consolidation within the market due to LVRG
Significant increase in consolidation within the market due to Life Insurance Reform Act (LVRG) Shrinking Number of insurance Effects of the Life Insurance Reform Act intermediaries in Germany (LVRG) 280.000 , 260.000 , • Quality of consultancy and 240.000 , portfolio is even more important 220.000
Slide 9: MLP is a pioneer in terms of new guarantee products
MLP is a pioneer in terms of new guarantee products Market product mix for newly brokered MLP product mix for newly brokered policies policies (4 %) (12 %) 5% 14 % Purely unit-linked (24 %) 49 % (59 %) 14 % 2016* Classic 2016 (37 %) 46 % New guarantees 72% (64 %) Source: German Insurance Association
Slide 10: The MLP Group: agenda
The MLP Group 1. MLP at a glance 2. Key Financials 3. Strategy & Outlook 4. Appendix Page 10 Management Roadshow
Slide 11: Strategic portfolio significantly broadened
Strategic portfolio significantly broadened Expansion of Occupational pension provision Clear business model Wealth management Real estate non-life insurance 2004 2005 2006 2011 2015 Foundation of Occupational Sale of own MLP buys shares in FERI AG Start of real estate portfolio Acquisition of DOMCU
Slide 12: FY 2016: Assets under management up to EUR 31.5 billion
FY 2016: Assets under management up to EUR 31.5 billion – Old age provision bottomed out Assets under management Old-age provision [in € billion] Brokered premium sum Revenue rising for 3 consecutive quarters 35 31.5 [in € million] 30 3,689 [in € million] 4000 3,473 100 Q4 3500 25 90 1,613 2015 2016
Slide 13: FY 2016: Gains primarily in the non-life insurance segment
FY 2016: Gains primarily in the non-life insurance segment Revenue € million 2015 2016 in % Q4 2015 Q4 2016 in % Old-age provision 215.7 221.5 2.7 87.8 94.3 7.4 Wealth management 166.0 166.4 0.2 44.7 43.5 –2.7 Health insurance 45.9 45.8 -0.3 12.3 11.8 –4.6 Non-life insurance 54.9 105.6 92.5 18.1
Slide 14: FY 2016: Operating EBIT at € 35.1 million
FY 2016: Operating EBIT at € 35.1 million Income statement € million Q4 2015 Q4 2016 2015 2016 Total revenue 186.5 191.7 554.3 610.4 Operating EBIT* 23.3 19.3 30.7 35.1 2016: EBIT 23.3 8.2 30.7 19.7 • Efficiency programme: one-off expenses of Finance cost -0.4 -0.4 -2.8 -0.9 € 15.4 million (€ 11.1 m
Slide 15: Q1/2017: Total revenue rises to € 163.0 million
Q1/2017: Total revenue rises to € 163.0 million Total revenue Q1 in € million 175 163.0 152.4 150 125 Revenue 143.6 153.8 Revenue from commissions and fees 158.9 148.8 100 Interest income 75 Other revenue 50 25 5.2 5.1 0 3.6 4.0 Q1 2016 Q1 2017 Page 15 Management Roadshow
Slide 16: Successful diversification beyond the old-age provision
Successful diversification beyond the old-age provision Commission income in Q1 (all consulting areas, excl. old-age provision) in € million 200 180 160 140 118.6 120 107.4 100 78.3 80 68.0 60.0 67.4 67.0 60 48.8 50.3 40 20 0 Q1/2009 Q1/2010 Q1/2011 Q1/2012 Q1/2013 Q1/2014 Q1/2015 Q1/2016 Q1/2017 We
Slide 17: Q1/2017: Strong growth in wealth management and real estate brokerage
Q1/2017: Strong growth in wealth management and real estate brokerage („other commissions and fees“) Revenue in € million Q1 2016 Q1 2017 in % Old-age provision 36.2 35.2 -3 Wealth management 38.9 45.7 17 Health insurance 11,8 11.9 1 Non-life insurance 50.7 52.8 4 Loans and mortgages* 3.6 3.8 6 Ot
Slide 18: Q1/2017: Operating EBIT increases by 51 percent to € 13.3 million
Q1/2017: Operating EBIT increases by 51 percent to € 13.3 million Income statement in € million Q1 2016 Q1 2017 One-off expenses for further development of the group structure: Total revenue 152.4 163.0 • Q1/2017: € 0.8 million Operating EBIT* 8.8 13.3 • FY 2017: A total of € 9 million is still expe
Slide 19: Q1/2017: Core capital ratio rises to 16 percent
Q1/2017: Core capital ratio rises to 16 percent in € million Assets 31/12/2016 31/03/2017 Equity ratio: 19.6 % Intangible assets 168.4 166.4 Financial assets 162.3 186.9 Core capital ratio: 16.0 % Receivables from clients in the banking business 626.5 662.2 Receivables from banks in the banking busi
Slide 20: Q1/2017: Net liquidity of around € 213 million
Q1/2017: Net liquidity of around € 213 million 1800 99 [in1600 € million] 1400 1200 -1271 1000 1281 1281 800 600 400 -215 133 133 133 200 112 428 186 186 186 186 213 213 0 Cash and cash equivalents Financial investments < 1 Receivables from banking Other receivables Liabilities due to the banking Sh
Slide 21: Q1/2017: Assets under management rises to € 31.6 billion
Q1/2017: Assets under management rises to € 31.6 billion Assets under management Premium sum: old-age provision in € billion in € million 32 31.5 31.6 600 30 29,2 29,0 29,3 29,2 582 30 29.3 567 28 28 26 550 26 24 Q3 24 Q3 770 22 764 22 500 20 20 18 18 H1 H1 16 450 16 1.250 1.306 14 14 12 12 400 31/0
Slide 22: Q1/2017: MLP attracts 4,900 new clients (families)
Q1/2017: MLP attracts 4,900 new clients (families) Gross number of new clients (families) Consultants , 6.000 2000 1,940 1,913 4,900 4,500 , 4.500 1750 , 3.000 1500 , 1.500 1250 0 1000 Q1 2016 Q1 2017 30/12/2016 31/03/2017 Q1: 15 percent of all new customers have been acquired online Page 22 Manag
Slide 23: Q1/2017: MLP serves 519,800 private and 19,300 corporate clients
Q1/2017: MLP serves 519,800 private and 19,300 corporate clients Private clients • Combined individuals: Number of private clients (families) (families) Partner relationship or parents-child 31/12/2016 unit and assigned to the same client 517,400 consultant • System applies for MLP and the 519,800 3
Slide 24: The MLP Group: agenda
The MLP Group 1. MLP at a glance 2. Key Financials 3. Strategy & Outlook 4. Appendix Page 24 Management Roadshow
Slide 25: Strategic agenda 2017
Strategic agenda 2017 Strategic Implementation focus 1 • Extension of the scope for action regarding future investments through altered group structure Organic growth • Strengthening of the university segment in the private client business through focus on core topics for young clients and consultan
Slide 26: Banking activities to be bundled at one company in the future
Banking activities with supervisory or regulatory relevance to be bundled at one company in the future Current structure Intended structure as of 2018 MLP AG MLP SE FERI AG MLP FDL AG DOMCURA AG FERI AG „Bank“ „Broker“ DOMCURA AG Current scope of services for clients will be maintained Better op
Slide 27: Scope for action significantly extended through new group structure
Scope for action significantly extended through new group structure Effects on equity At least stable 450 development anticipated 400 Stable + € 75 million 350 by 2021 300 250 200 - 20 % 150 100 2012 2013 2014 2015 2016 2021 Shareholders' equity Eligible own funds Further strengthening of the busi
Slide 28: Private client business – strengthening the university segment
Private client business – strengthening the university segment Number of academics in active employment million • Increasing potential for MLP in the university segment 10.8 10.2 8.6 • Measures of the last few years are having an impact, 7.1 particularly the introduction of a training allowance for
Slide 29: Sharper focus on university segment
Sharper focus on university segment MLP private client business Today: Future: Consultant >6 years with Consultant <6 years with MLP MLP 4 divisional board 4 divisional board 1 divisional board members members member Regional manager (employee) Office managers Office managers Head of university team
Slide 30: Online policy sales successfully launched for basic products
Online policy sales successfully launched for basic products – New client portal enters its first extension phase in April FinTech cooperation partner: FinTech cooperation partner: Online policy sale New client portal • Mobile phone protection online since January 2016 • Travel health insurance onli
Slide 31: Even more balanced revenue basis in the medium term
Even more balanced revenue basis in the medium term Development of revenue distribution Proportion of recurring revenue 2005 2016 2020e Old-age provision incl. occupational pension provision Wealth management 2 %1 % Non-life insurance 4% 3 %3 % 2%3% 80 % 39 % 35 % Health insurance 10 % 21 % Loans an
Slide 32: Outlook: Operating EBIT of at least € 45 million anticipated
Outlook: Operating EBIT of at least € 45 million anticipated Forecast development of Qualitative assessment of the administrative expenses development of sales revenue in € million 2017 285 ~279 Revenue from old-age provision 0 280 Revenue from health insurance + 275 ~270 Revenue from wealth managem
Slide 33: Summary
Summary MLP increased important key performance indicators in 2016. In light of market conditions that remained difficult, this development can be seen as satisfactory. Especially in old-age provision the market environment remains challenging – furthermore political uncertainties in health insu
Slide 34: The MLP Group: agenda
The MLP Group 1. MLP at a glance 2. Key Financials 3. Strategy & Outlook 4. Appendix Page 34 Management Roadshow
Slide 35: FY 2016: Balance sheet – Core capital ratio at 14.2 %
FY 2016: Balance sheet – Core capital ratio at 14.2 % Assets Dec. 31, 2015 Dec. 31, 2016 Intangible assets 174.5 168.4 Equity ratio: 19.7 % Financial assets 147.9 162.3 Return on equity: 3.8 % Receivables from clients in the banking business 542.7 626.5 Receivables from banks in the banking business
Slide 36: DOMCURA: Underwriting agency selects the appropriate insurer
DOMCURA: Underwriting agency selects the 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 Consultin
Slide 37: Positive effects on MLP through DOMCURA
Positive effects on MLP through DOMCURA Increasing share of recurring revenues in the MLP Group Private Clients: Higher Margins New Bundle through Product extended value chain DOMCURA Non-life Insurance Total of EUR 330 million Market joint premium position with volume (MLP: regard to 150 Mio. € / i
Slide 38: DOMCURA: targeted further development within the MLP Group
DOMCURA: targeted further development within the MLP Group New solution for MLP clients in the non-life insurance sector: complete protection with liability insurance, accident insurance, etc. RT 1 RT 2 RT 3 RT 4 RT 5 Private product bundle Liability Contents Accident Buildings Legal with process ma
Slide 39: New kinds of support through expansion of Customer Service Centre
New kinds of support through expansion of Customer Service Centre (CSC) Now Client is supported by consultant Future Consultant chooses type of support Support by consultant Temporary support by CSC Direct support by CSC Active and reactive Consultant entitled to Consultant not entitled to Commissio