Mlp Se · XETR:MLP
Mlp — Non-Deal Roadshow (August 2009)
35 slides from Mlp's roadshow presentation, Aug 19, 2009
Slide 1: Individuality requires partnership
Individuality requires partnership Andreas Dittmar, Head of Finance Roadshow Europe August 19/20, 2009
Slide 2: Agenda
Agenda 1. MLP’s business model 2. Statutory changes 3. Strategy and market developments 4. H1 & Q2 2009 5. Outlook and summary 6. Contact Page 2 MLP Roadshow – August 19/20, 2009
Slide 3: 1. MLP's business model
1. MLP’s business model Roadshow Europe - August 19/20, 2009
Slide 4: 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 5: 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 6: 2. Statutory changes
2. Statutory changes Roadshow Europe - August 19/20, 2009
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: 3. Strategy and market developments
3. Strategy and market developments Roadshow Europe - August 19/20, 2009
Slide 13: 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 14: 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 15: TPC boasts first-rate reference clients - nationwide
TPC boasts first-rate reference clients - nationwide Extract Services Industrial Public enterprises Page 15 MLP Roadshow – August 19/20, 2009
Slide 16: Extensive shareholders' participation
Extensive shareholders’ participation Dividend sum [in € million] [Mio. Euro] 70 60 50 31.5 40 30 49.0 20 40.0 30.2 10 23.9 31.5 16.3 0 2003 2004 2005 2006 2007 2008 Extra dividend Page 16 MLP Roadshow – August 19/20, 2009
Slide 17: 4. H1 & Q2 2009
4. H1 & Q2 2009 Roadshow Europe - August 19/20, 2009
Slide 18: Highlights H1 & Q2 2009
Highlights H1 & Q2 2009 • Financial and economic crisis continued during H1 2009 • Following a sharp downturn in Q1, early indicators show a stabilization of the German economy in Q2 and for the rest of the year • However, expectations for German GDP growth for 2009 remain at -6% • Due to uncertaint
Slide 19: H1: Robust revenue development
H1: Robust revenue development Total revenues [in € million] 300 282.2 231.4 ~ 40 200 260.6 220.8 241.2 203.5 100 Revenues Revenues: commissions and fees Interest income 19.4 17.3 Other revenues 21.6 10.6 0 Riester step H1 2008 H1 2009 Page 19 MLP Roadshow – August 19/20, 2009
Slide 20: Old-age pension provision and wealth management affected by crisis
Old-age pension provision and wealth management affected by crisis Revenues – commissions and fees [in € million] Q2 2008 Q2 2009 in % H1 2008 H1 2009 in % Old-age pension provision 63.2 60.1 -4.9 150.6 123.0 -18.4 Health insurance 11.4 9.1 -20.3 22.8 22.8 -0.1 Non-life insurance 3.2 3.4 7.0 18.8 18
Slide 21: Earnings influenced by crisis and one-offs
Earnings influenced by crisis and one-offs Continuing operations Income statement [in € million] Q2 2008 Q2 2009 H1 2008 H1 2009 Total revenues 126.4 105.9 282.2 231.4 • H1 EBIT includes EBIT 10.7 2.4 35.8 5.9 • € 3.4m defense costs Finance cost -0.8 -0.6 -8.9 -2.1 • € 1.1m restructuring EBT 9.9 1.8
Slide 22: AuM increased
AuM increased New Business and Assets under Management Old-age pension provision Assets under Management [in € bn] [in € bn] 3.0 12 11.4 11.7 3.0 11.3 11.2 1.9 2.0 6 1.0 0 0 H1 2008 H1 2009 30/09/08 31/12/08 31/03/09 30/06/09 Page 22 MLP Roadshow – August 19/20, 2009
Slide 23: Strong liquidity
Strong liquidity MLP Group – selected balance sheet items [in € million] 31/12/2008 30/06/2009 Intangible assets 162.4 173.3 • Liquid funds € 188m Financial investments 179.9 194.8 Cash and cash equivalents 38.1 47.4 • Equity ratio 27.6% Other receivables and other assets 147.1 95.1 • Seasonal decli
Slide 24: Positive development in number of clients continued in Q2
Positive development in number of clients continued in Q2 Number of clients 777,000 773,000 New clients Q2: 8,500 (gross) 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 30/06/09 Page 24 MLP Roadshow – August 19/20, 2009
Slide 25: Sales force: Focus on quality
Sales force: Focus on quality Number of consultants 3,000 2,527 2,435 • Revenue per 2,418 2,413 2,405 consultant 2,000 H1 2009: € 86,000 1,000 0 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 Page 25 MLP Roadshow – August 19/20, 2009
Slide 26: 5. Outlook and summary
5. Outlook and summary Roadshow Europe - August 19/20, 2009
Slide 27: 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 27 MLP Roadshow – August 19/20, 2009
Slide 28: High Potential in Old-age Pension Provision
High Potential in Old-age Pension Provision The Pension Level of the Future – as a Percentage of gross Salary* Luxembourg 88.3 Spain 81.2 Austria 80.1 Italy 67.9 Switzerland 58.4 France 51.2 USA 41.2 OECD average: Germany 39.9 58.7% Japan 34.4 Great Britain 30.8 Source: OECD * Level of state pension
Slide 29: Low Average Age offers high Potential
Low Average Age offers high Potential Targeted Expansion of MLP Wealth Management Clients by age y MLP clients’ income and savings 200,000 quotas clearly exceed average levels 180,000 160,000 y The average age of an MLP client 140,000 120,000 is 39 100,000 80,000 y Already 37 per cent of clients are
Slide 30: Growth through a holistic Consulting Approach
Growth through a holistic Consulting Approach Rising Revenue Potential in Wealth Management Potential sales revenue - MLP Finanzdienstleistungen AG per client and year [€] 3,000 1,500 0 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 Age Other Wealth management Healthcare provision Old-age pensio
Slide 31: Targeted cost reduction of €34m
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 32: Successful cost cutting in Q2: Fixed costs down by €11m
Successful cost cutting in Q2: Fixed costs down by € 11m Development of fixed costs [in € million] 0.9 -0.9 76.9 -7.5 69.4 -1.1 -2.5 65.8 Q2 2008 Personnel D & A Other Q2 2009 Restruc- Cost Adjusted (reported) operating (reported) turing increase fixed costs expenses charges due to Q2 2009 Q2 2009 a
Slide 33: 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 34: Outlook and summary
Outlook and summary • Market environment remained difficult during H1 2009 • Cost-cutting program shows first success: - Fixed cost base reduced in Q2 - Target: Reduce fixed costs by € 34m by the end of 2010 • Pick-up in business expected, especially in Q4 - Leverage of business model fully in place
Slide 35: 6. Contact
6. 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 35 MLP Roadshow – August 19/20, 2009