Mlp Se · XETR:MLP
Mlp — Non-Deal Roadshow (May 2009)
34 slides from Mlp's roadshow presentation, May 25, 2009
Slide 1: Individuality requires partnership
Individuality requires partnership Helmut Achatz, Head of Investor Relations Roadshow Munich May 25, 2009
Slide 2: Agenda
Agenda 1. Highlights Q1 2009 2. Financial details Q1 2009 3. Customers and consultants 4. Strategy and market developments 5. Outlook and summary 6. Appendix Page 2 MLP Roadshow, Munich – May 25, 2009
Slide 3: 1. Highlights Q1 2009
1. Highlights Q1 2009 Munich – May 25, 2009
Slide 4: Highlights Q1 2009
Highlights Q1 2009 • Difficult market environment continued during Q1 2009 • Growth expectations for German GDP were lowered to -6% • Due to uncertainty caused by the ongoing economic crisis private and institutional clients were still reluctant to invest long-term • Satisfactory revenue development
Slide 5: 2. Financial details Q1 2009
2. Financial details Q1 2009 Munich – May 25, 2009
Slide 6: Q1: Satisfactory revenue development
Q1: Satisfactory revenue development Total revenues Q1 2009 [in € million] 155.9 150 ~ 40.0 125.5 100 148.7 120.8 138.7 111.6 50 Revenues Revenues: commissions and fees Interest income 10.0 9.2 Other revenues 7.2 4.7 0 Riester step Q1 2008 Q1 2009 Page 6 MLP Roadshow, Munich – May 25, 2009
Slide 7: Q1: Significant increase in revenues from health insurance
Q1: Significant increase in revenues from health insurance Revenues – commissions and fees [in € million] Q1 2008 Q1 2009 in % Old-age pension provision 87.5 62.9 -28.1 Health insurance 11.4 13.7 20.2 Non-life insurance 15.6 15.2 -2.6 Wealth management 20.5 17.2 -16.1 Loans and mortgages 3.0 2.0 -33
Slide 8: Revenue split shows advantage of holistic consulting approach
Revenue split shows advantage of holistic consulting approach Revenues – commissions and fees, Q1 2009: € 111.6 m [in %] 1.7% 0.6% 15.4% 56.4% Old-age pension provision Old age pension provision Health Health insurance insurance11,461 Non-lifeNon-life insurance insurance 13.6% 3,336 Wealth managemen
Slide 9: Earnings influenced by one-offs
Earnings influenced by one-offs Continuing operations Income statement [in € million] Q1 2008 Q1 2009 • Defense costs € 3.3 m Total revenues 155.9 125.5 • Finance cost includes € 2.4 m EBIT 25.1 3.4 (€ 7.8 m) dividend payment to Finance cost -8.1 -1.5 remaining Feri shareholders EBT 17.0 2.0 Taxes -
Slide 10: AuM stable against the market trend
AuM stable against the market trend New Business and Assets under Management Old-age pension provision Assets under Management [in € bn] [in € bn] 1.9 12 11.3 11.4 11.2 1.5 1.0 0.9 6 0.5 0 0 Q1 2008 Q1 2009 30/09/08 31/12/08 31/03/09 Page 10 MLP Roadshow, Munich – May 25, 2009
Slide 11: Strong equity base and liquidity
Strong equity base and liquidity MLP Group – selected balance sheet items [in € million] 31/03/2008 31/03/2009 • Liquid funds Intangible assets 162.4 175.0 € 216.4 m Financial investments 179.9 230.4 • Equity ratio 29% Cash and cash equivalents 38.1 33.1 • Proposed dividend Other receivables and oth
Slide 12: 3. Customers and consultants
3. Customers and consultants Munich – May 25, 2009
Slide 13: Acquisition of ZSH significantly improves MLP's position in the dentists target group
Acquisition of ZSH significantly improves MLP’s position in the dentists target group Number of customers 773,000 760,000 740,000 728,000 719,000 720,000 713,000 704,000 700,000 680,000 660,000 31/03/08 30/06/08 30/09/08 31/12/08 31/03/09 Page 13 MLP Roadshow, Munich – May 25, 2009
Slide 14: High quality sales force
High quality sales force Number of consultants 3,000 2,535 2,527 2,458 2,435 2,418 2,413 2,000 1,000 0 31/12/07 31/03/08 30/06/08 30/09/08 31/12/08 31/03/09 Page 14 MLP Roadshow, Munich – May 25, 2009
Slide 15: 4. Strategy and market developments
4. Strategy and market developments Munich – May 25, 2009
Slide 16: MLP is already implementing the major requirements
MLP is already implementing the major requirements Study by the ministry of consumer protection concerning better quality in financial consulting Major requirements: MLP situation: y Stronger orientation towards • Client-oriented consulting as customer requirements and the core of the business model
Slide 17: Targeted further development
Targeted further development Milestones of the past five years 2004 2005 2006 2007 2008/09 • Strengthening of • Sale of own • Majority holding in • Establishment • Acquisition independence insurers Feri Finance AG of MLP Hyp of TPC • Development of • Banking license • Accreditation • Acquisition occ
Slide 18: MLP – A broad-based consulting house
MLP – A broad-based consulting house Private clients Corporate clients Rating x MLP Finanzdienstleistungen x MLP Finanzdienstleistungen x Feri EuroRating Services (Business areas: occupational x Feri Family Trust pensions and corporate clients) x ZSH x TPC x Feri Institutional Advisors Independent i
Slide 19: Page 19 MLP Roadshow, Munich – May 25, 2009
Page 19 MLP Roadshow, Munich – May 25, 2009
Slide 20: TPC boasts first-rate reference clients - nationwide
TPC boasts first-rate reference clients - nationwide Extract Services Industrial Public enterprises Page 20 MLP Roadshow, Munich – May 25, 2009
Slide 21: 5. Outlook and summary
5. Outlook and summary Munich – May 25, 2009
Slide 22: Management agenda 2009
Management agenda 2009 Consistent and full utilisation of revenue potential Strict cost discipline – package of measures Beratungsqualität for reducing expenditure External growth through active participation in the industry consolidation Page 22 MLP Roadshow, Munich – May 25, 2009
Slide 23: MLP's target group has the highest provision requirements
MLP’s target group has the highest provision requirements Continued high revenue potential in old-age pension provision Provision shortfall* 50% 45% 40% 35% University Graduates Part-time staff 30% Skilled workers Standard pensioner 25% 1954 1969 1957 1960 1963 1966 1972 1975 1978 1981 1948 1984 194
Slide 24: Targeted cost reduction of € 34 m
Targeted cost reduction of € 34 m Fixed costs (excluding acquisition-related cost increases) [in € million] 320 314 • Cost savings of € 12 m in 2009 310 and a further € 10 m in 2010 300 • In addition: No re-occurrence 290 290 in 2009 of € 12 m of one-time 280 expenses incurred in 2008 280 270 260 20
Slide 25: Optimally equipped for consolidation
Optimally equipped for consolidation Growth through acquisitions Trend MLP Strengths Quality and Independence • MLP is subject to the highest qualitative requirements (independent broker, banking Æ Numerous statutory changes license) Æ Independent providers are gaining market share • MLP has long ex
Slide 26: Outlook and summary
Outlook and summary • Difficult market environment continued in Q1 2009 • Customers are still reluctant to invest long-term • In a challenging market environment MLP developed quite well • Cost saving program implemented • Target: Reduce fixed costs by € 34m by the end of 2010 • Outlook 2009: MLP is
Slide 27: 6. Appendix
6. Appendix - MLP’s business model and positioning - Statutory changes - Contact Munich – May 25, 2009
Slide 28: Independent business model and one-stop for lifetime financial solutions
Independent business model and one-stop for lifetime financial solutions Independent Business Model is unique in the German Market Target group focus + Quality of advice + Independence Objectives Advice Solution 25 28 31 34 35 37 40 45 52 65 Planning Old-age provision management Insurance coverage N
Slide 29: Independence is key for MLP's customer group
Independence is key for MLP’s customer group The most important demands of customers with an university degree 98% Information regarding the drawbacks of products 95% First class financial services 93% Comprehensive consulting / tailor-made offers 77% Offers from different product providers 68% Easy
Slide 30: Extensive statutory changes . . .
Extensive statutory changes . . . Regulatory requirements May 22, 2007 November 1, 2007 Beginning of 2008 Insurance Mediation Dir. MiFID German Ins. Contract Law Insurance brokerage Banks / Fin. investments Insurers/ Brokers y Rising requirements y Broadening of the y Increase in cash surrender conc
Slide 31: . . . lead to radical changes in the German financial industry
. . . lead to radical changes in the German financial industry Major Market Trends for Banks, Insurance Companies and IFAs Increasing regulatory requirements will further change the market place dramatically: Further optimisation of cost structure and processes Consolidation Professionalisation Spec
Slide 32: MLP is optimally prepared to meet the new requirements
MLP is optimally prepared to meet the new requirements Extensive new regulations: x Brokerage guideline, MiFID, VVG & x Flat-rate capital gains tax, healthcare reform Increasing competition: x Capability to adjust rapidly to changed framework conditions x Banks and new providers are entering the mar
Slide 33: Independent brokers gain significant market shares
Independent brokers gain significant market shares Effects of the regulation in Great Britain Sales by channel in 1992 Sales by channel in 2006 Direct sales Direct sales to to clients clients 2% Direct sales 7% via sales force Direct sales 7% via sales force 50% IFA IFA Banc- 39% assurance 73% 11% B
Slide 34: Contact
Contact MLP Investor Relations Alte Heerstr. 40 69168 Wiesloch Germany Helmut Achatz, Head of Investor Relations Ines Kittlitz, Manager Investor Relations Tel.: +49 (0) 6222 308 8320 Fax: +49 (0) 6222 308 1131 investorrelations@mlp.de www.mlp-ag.de Page 34 MLP Roadshow, Munich – May 25, 2009