Slide 1: The MLP Group – The partner for all financial matters
The MLP Group – The partner for all financial matters Reinhard Loose, CFO German Equity Forum Frankfurt, November 25, 2015
Slide 2: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 6 Market developments 11 Financials 14 Outlook & Summary 19 Appendix 23 Page 2 November 25, 2015 German Equity Forum 2015
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 investors age
Slide 4: MLP Group – An Overview
MLP Group – An Overview • Around 855,000 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 clien
Slide 5: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 6 Market developments 11 Financials 14 Outlook & Summary 19 Appendix 23 Page 5 November 25, 2015 German Equity Forum 2015
Slide 6: 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 6 November 25, 2015 German Equity Forum 2015
Slide 7: Stability: strengthening of the revenue base through strategic further development
Stability: strengthening of the revenue 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 • Underwr
Slide 8: Administration costs reduced by more than €50 million – solid foundation for the future
Administration costs reduced by more than € 50 million – solid foundation for the future Administrative costs* in € million 311.6 295.5 279.1 274.3** • Active cost management 256.8 255*** • Stable cost development 251.6 250.6 through improved cost structure * Definition: Personnel expenses, deprecia
Slide 9: Attractive dividend policy & stable shareholder structure
Attractive dividend policy & stable shareholder structure 11.8% Dividend Pay-out ratio: Return on 6.4% policy 50% - 70% of net profit dividend: 3.1% 4.0% 3.1% 4.6% 2009 2010 2011 2012 2013 2014 Dr. h. c. Manfred Lautenschläger 23.22% Dr. h. c. Manfred Lautenschläger HDI 9.36% Barmenia 5.49% Angelika
Slide 10: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 6 Market developments 11 Financials 14 Outlook & Summary 19 Appendix 23 Page 10 November 25, 2015 German Equity Forum 2015
Slide 11: 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 • Quality of consulting services and differentiation financial industry since the outbreak of the financial crisis from the competition continue to gain
Slide 12: 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 13: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 6 Market developments 11 Financials 14 Outlook & Summary 19 Appendix 23 Page 13 November 25, 2015 German Equity Forum 2015
Slide 14: 9M: Total revenue rises to € 369.5 million
9M: Total revenue rises to € 369.5 million Total revenue 9M [in € million] 369.5 344.7 338.8 350 300 250 341.1 314.8 308.0 Revenue 357.2 325.2 200 331.9 Revenue from commissions and fees 150 Interest income 100 50 Other revenue 16.1 17.1 17.2 0 12.3 12.8 13.6 9M 2015 9M 2014 9M 2013 Page 14 November
Slide 15: 9M: Growth in nearly all consulting areas
9M: Growth in nearly all consulting areas Revenue [in € million] Q3 2015 Q3 2014 Δ in % 9M 2015 9M 2014 Δ in % Old-age provision 44.8 48.9 -8 128.0 133.1 -4 Wealth management 38.7 38.8 0 121.3 105.7 15 Health insurance 11.4 10.7 7 33.6 31.8 6 Non-life insurance* 11.5 5.5 >100 36.7 29.6 24 Loans and
Slide 16: 9M: Proforma-EBIT reaches € 8.3 million
9M: Proforma-EBIT reaches € 8.3 million Income statement [in € million] Burdens Q3/2015: Q3 2015 Q3 2014 9M 2015 9M 2014* • Market-related decrease in Total revenue 122.9 117.8 369.5 344.7 performance-linked fees and hesitancy in old-age Pro forma-EBIT** 0.2 4.9 8.3 9.4 provision EBIT -0.7 4.9 7.4 9
Slide 17: 9M 2015: Balance sheet details
9M 2015: Balance sheet details MLP Group [in € million] 30/09/2015 31/12/2014 Intangible assets 172.8 156.2 Financial investments 140.0 145.3 • Equity ratio: 22.2% • Core capital ratio: 13.1% Cash and cash equivalents 79.6 49.1 • Intangible assets increased due to Other receivables and other assets
Slide 18: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 6 Market developments 11 Financials 14 Outlook & Summary 19 Appendix 23 Page 18 November 25, 2015 German Equity Forum 2015
Slide 19: Implemented growth initiatives systematically continued
Implemented growth initiatives systematically continued Focus Measures implemented in the first nine months 1. Online strategy • Expansion of the internet presence in order to serve as a significant channel for attracting interested parties and new clients • Start of the new internet presence “MLP f
Slide 20: Outlook: Q4 with significant influence on the full-year results
Outlook: Q4 with significant influence on the full-year results Contribution of Q4 to the full-year EBIT Sales revenue [in € million] 70 In each case compared to the previous year 60 2015 50 40 Revenue from old-age Decreasing trend provision 30 29.6 Revenue from health 18.4 Slight increase 20 insura
Slide 21: Summary
Summary • MLP has targetedly further developed its business model in the past few years. • Consolidation is now starting to gather momentum in Germany. • MLP is optimally positioned for the new requirements – and will benefit over-proportionally from a recovery in the market. • MLP will continue its
Slide 22: 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 22 N
Slide 23: Agenda
Agenda MLP at a glance 3 Benefits for shareholders 6 Market developments 11 Financials 14 Outlook & Summary 19 Appendix 23 Page 23 November 25, 2015 German Equity Forum 2015
Slide 24: Integration of the underwriting agency DOMCURA is progressing according to plan
Integration of the underwriting agency DOMCURA is progressing according to plan • Range of jointly-issued, high performance package-type products for consulting at MLP is currently under development • Improvement of technical and process handling in non-life business at MLP is underway Further exp
Slide 25: Anticipated pro-forma EBIT for DOMCURA in 2015: around € 2 million
Anticipated pro-forma EBIT for DOMCURA in 2015: around € 2 million As of 1st January, 2015, MLP is entitled to a share in profits for 100 percent of the shares. Transaction was closed on 29th July, 2015 EBIT: plus ~ € 5.0 million EBIT: minus ~ € 3.0 million 2015 Q1 Q2 Q3 Q4 • EBIT booked to equity c
Slide 26: 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