Mlp Se · XETR:MLP
Mlp — Non-Deal Roadshow (June 2016)
41 slides from Mlp's roadshow presentation, June 2016
Slide 1: The MLP Group – The partner for all financial matters
The MLP Group – The partner for all financial matters , Management Presentation
Slide 2: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Key Financials 2015 3. Strategy & Outlook 4. Appendix Page 2 June/July 2016
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 The underwriting The specialist in The Partner for all for institutional agency, focus
Slide 4: Main business areas
MLP Group – An Overview • Around 511,000* private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, Clients solicitors, engineers and economists) • Around 18,300* corporate and institutional clients *as of March 31, 2016 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 6.4% Dividend policy dividend: 4.6% 50% - 70% of net profit 4.0% 3.1% 3.3% 2010 2011 2012 2013 2014 2015 Dr. h. c. Manfred Lautenschläger 23.22% Dr. h. c. Manfred Lautenschläger HDI 9.36% Barmenia 5.49% Freefloa
Slide 6: Fundamental changes in the market
Fundamental changes in the market 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 competition continue to gain
Slide 7: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Key Financials 2015 3. Strategy & Outlook 4. Appendix Page 7 June/July 2016
Slide 8: Growth in virtually all fields of consulting
Growth in virtually all fields of consulting Old-age provision Wealth Non-life insurance Health insurance Loans Other commissions management and fees - 10 % + 13 % + 59 % + 6% + 19 % + 86 % 250 239,7 180 60 50 18 16 15.6 166 54.9 45.9 16.2 215,7 43.5 147 13.6 34.6 8.4 125 90 30 25 9 8 0 0 0 0 0 0 20
Slide 9: Strategic portfolio significantly broadened
Strategic portfolio significantly broadened Real estate Expansion of Occupational pension provision Clear business model Wealth management 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 10: FY 2015: Total revenue rises to € 557.2 million
FY 2015: Total revenue rises to € 557.2 million Total revenue FY € million 600 545.5 568.0 557.2 531.1 499.0 Revenue Commission income 400 498.5 518.0 486.9 457.7 514.3 526.7 544.6 535.7 Revenue from the 509.7 480.5 interest rate business Other revenue 200 28.2 26.6 22.8 22.9 21.4 18.8 23.5 18.5 21.
Slide 11: Growth in virtually all consulting areas
Growth in virtually all consulting areas Revenue € million ∆ 2014/2015 in % 2015 2014 Q4 2015 Q4 2014 ∆ in % Old-age provision -10.0 215.7 239.7 87.8 106.6 -17.6 Wealth management 12.9 166.0 117,9 147.0 44.7 41.3 8.2 Health insurance 5.5 45.9 43.5 9.2 13.9 -33.8 Non-life insurance 58.7 54.9 34.6 21.
Slide 12: Assets under management continue to grow
Assets under management continue to grow Wealth management Old-age provision Assets under management, MLP Group Premium sum of MLP's new business € billion € billion 30,0 29.0 4,5 4.12 27.5 3.62 3.47 25,0 24.5 3 21.2 19.8 20.2 20,0 17.0 1,5 15,0 14.0 12.7 10,0 0 2007 2008 2009 2010 2011 2012 2013 20
Slide 13: Number of consultants rises slightly
Number of consultants rises slightly Client consultants New clients, gross 30000 2000 1,952 27,900 27,500 1,935 1,913 1,914 25000 1750 20000 15000 1500 10000 Dec 31, 2014 Q230, Jun 2015 2015 Sep 30, 2015 Dec 31, 2015 2014 2015 Total clients: 847,600 858,700 Page 13 June/July 2016
Slide 14: Client counting method will reflect the Group structure in a better way
Client counting method will reflect the Group structure in a better way Presentation of client numbers as of Q1 2016 • Combined individuals: Partner relationship or parents-child unit and Private clients (families) allocated to the same client consultant • System applies for MLP and the relevant Num
Slide 15: FY 2015: Pro forma EBIT amounts to € 32.5 million
FY 2015: Pro forma EBIT amounts to € 32.5 million Income statement € million Q4 2015 Q4 2014 2015 2014 Net profit 2015 based on an assumed Total revenue 187.7 186.4 557.2 531.1 acquisition of DOMCURA with effect from Jan 1, 2015: € 23.3 million Pro forma EBIT* 24.2 29.6 32.5 39.0 EBIT 23.3 29,6 30.7
Slide 16: Core capital ratio of 14.3 %
Core capital ratio of 14.3 % € million Dec 31, 2015 Dec 31, 2014 Intangible assets 174.5 156.2 Core capital ratio: 14.3 % (15.6 %) Financial assets 147.9 145.3 Equity ratio: 22.0 % (23.2 %) Cash and cash equivalents 77.5 49.1 Other receivables and assets 112.5 117.7 Return on equity: 5.1 % (7.
Slide 17: Dividend of 12 cents – dividend yield: 3.3 %
Dividend of 12 cents – dividend yield: 3,3 % Dividend per share Dividend yield* euro cent in % 20 5 4.6 17 Distribution rate: 56 %** 16 15 At the same time, capital is required for: 3.3 3,5 12 3.1 - acquisitions - capital expenditure 10 2,5 - capital management (Basel III) Unchanged planned di
Slide 18: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Key Financials 2015 3. Strategy & Outlook 4. Appendix Page 18 June/July 2016
Slide 19: Strategic agenda 2016
Strategic agenda 2016 Strategic focus Implementation 1 • MLP Group open to acquisitions in two areas: Inorganic growth • In FERI market segment • In MLP private client business Making MLP more independent 2 • Previously started growth initiatives will be continued: of short-term Organic growth • Bro
Slide 20: Significant increase in consolidation within the market due to LVRG
Significant increase in consolidation within the market due to Life Insurance Reform Act (LVRG) Number of insurance intermediaries Effects of the Life Insurance Reform Act in Germany (LVRG) 280.000 , 260.000 , • Quality of consultancy and 240.000 , portfolio is even more important 220.000 , 200.000
Slide 21: 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 2015 2019e Old-age provision incl. occupational pension provision Wealth management 2% 1% 3% 3% 3% 3% Non-life insurance 4% 11% 34% Health insurance 80% 42% 21% Loans and mort
Slide 22: 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 23: DOMCURA acquisition: targeted further development within the MLP Group
DOMCURA acquisition: 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 wit
Slide 24: Recruiting offensive to be continued
Recruiting offensive to be continued Further training grants and allowances for easing Master of Financial Planning transition to self-employment are bearing fruit Steinbeis School of Management and Innovation (SMI) • Widespread recognition of MLP training Further measures: • Very high level of flex
Slide 25: Online strategy contributes to personal consulting
Online strategy contributes to personal consulting Digital services Personal consulting • Range of information (mlp-financify.de, mlp.de) • Online sale of basic products 65 % across the market want consulting on complex products in 27% the branch or at home* only online • Digital (self-)services, e.
Slide 26: Digital footprint significantly expanded
Digital footprint significantly expanded MLP Websites relaunched mlp.de mlp-financify.de 180 sites of branches 2,000 client consultant profiles 7 million visits p.a Social Media Facebook YouTube Twitter First online policy sales Page 26 June/July 2016
Slide 27: Further enhancing our digital approach
Further enhancing our digital approach More online policy sales travel health insurance bicycle/e-bike and more to follow MLP Financepilot further developed Scan-to-bank (easy payment order) Paydirekt (B2C) SecureGo WhatsCash (C2C) Further companies with basic data Client portal One login Dashboard
Slide 28: 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
Slide 29: Cost management tightened further
Cost management tightened further Administrative expenses* 2008 – 2017 (planned) in € million Incl. DOMCURA- 350 administrative expenses One-off- Total administrative 314 expenses expenses 300 273 280,5 Saving*** 15 Saving*** 262 3,5 11,5 265,5 11 23 250 As of August 200 2015 150 100 2008 2015 2016*
Slide 30: Outlook
Outlook Qualitative assessment of the development of sales revenues 2016 2017 Revenue from old-age provision 0 0 Revenue from health insurance + 0 Revenue from wealth management + + Revenue from non-life insurance ++ + very positive: ++, positive: +, neutral: 0, negative: -, very negative: -- (in ea
Slide 31: Summary
Summary In view of the external conditions the year 2015 is additional proof that the further development of the business model is increasingly taking effect. MLP will further accelerate the transformation in 2016. The Group's cost management will be tightened even further to this end. Alongside
Slide 32: Contact
Contact Andreas Herzog Alte Heerstr. 40 Head of Investor Relations and 69168 Wiesloch Financial Communications Germany Tel.: +49 (0) 6222 • 308 • 8310 Fax: +49 (0) 6222 • 308 • 1131 investorrelations@mlp.de www.mlp-ag.com Page 32 June/July 2016
Slide 33: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Key Financials 2015 3. Strategy & Outlook 4. Appendix Page 33 June/July 2016
Slide 34: Q1/2016: Positive early indicators at the start of the year
Q1/2016: Positive early indicators at the start of the year Total revenue Q1 175 152.4 Operating EBIT: € 8.8 million 150 (Q1 2015: € 7.0 million) 130.0 125 143.6 Positive early indicators for further revenue development 148.8 100 120.3 125.9 75 Revenue 50 Revenue from commissions and fees 25 Int
Slide 35: Q1/2016: In non-life business MLP is benefiting from the acquisition of DOMCURA
Q1/2016: In non-life business MLP is benefiting from the acquisition of DOMCURA Revenue [in € million] Q1 2016 Q1 2015 Δ in % Q1/2015: • Revenue old-age provision in Old-age provision 36.2 42.0 -14 Q1/2015 positively influenced Wealth management 38.9 40.7 -4 by a one-time effect Health insurance 11.
Slide 36: Q1/2016: Further broadened revenue mix
Q1/2016: Further broadened revenue mix Revenue from commissions and fees Q1 2016: € 143.6 million (€ 120.3 million) 3% 2% 3% 2% 25 % Old-age provision 17 % 35 % Wealth management Health insurance 35 % Q1 2015 Q1 2016 Non-life insurance 10 % Loans and mortgages 27 % Other commissions 8% and fees 34 %
Slide 37: Q1/2016: Operating EBIT at € 8.8 million
Q1/2016: Operating EBIT at € 8.8 million Income statement € million Q1 2016 Q1 2015 Q1/2016: • One-off expenses within the scope of Total revenue 152.4 130.0 the efficiency measures: € 0.1 million Operating EBIT* 8.8 7.0 EBIT 8.7 7.0 Finance cost -0.1 -0.2 EBT 8.6 6.9 Taxes -2,4 -1,6 Group net profi
Slide 38: Q1/2016: Core capital ratio: 13.5 %
Q1/2016: Core capital ratio: 13.5 % € million Mar 31, 2016 Dec 31, 2015 Intangible assets 173.9 174.5 Core capital ratio: 13.5 % Financial assets 158.8 147.9 Equity ratio: 21.6 % Cash and cash equivalents 133.4 77.5 Other receivables and assets 94.1 112.5 Shareholders' equity 387.9 385.8 Equity
Slide 39: Q1/2016: Assets under management continue to grow
Q1/2016: Assets under management continue to grow Wealth management Old-age provision Assets under management, MLP Group Premium sum of MLP's new business 600 29.3 582 30 29.0 29.0 570 28 550 26 24 22 500 20 18 450 16 14 12 400 31/03/2015 31/12/2015 31/03/2016 Q1 2015 Q1 2016 Page 39 June/July 2016
Slide 40: Q1/2016: MLP attracts 4,200 new private clients
Q1/2016: MLP attracts 4,200 new private clients Gross number of new clients (families) Consultants 4,200 , 2.000 1,942 1,931 , 4.000 3,700 , 1.750 , 1.500 , 2.500 , 1.250 , 1.000 , 1.000 Q1 2015 Q1 2016 31/12/2015 31/03/2016 Page 40 June/July 2016
Slide 41: 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