Mlp Se · XETR:MLP
Mlp — Non-Deal Roadshow (November 2009)
38 slides from Mlp's roadshow presentation, Nov 18, 2009
Slide 1: MLP - Well positioned in a changing market
MLP - Well positioned in a changing market Uwe Schroeder-Wildberg, CEO Roadshow London November 18, 2009
Slide 2: Agenda
Agenda 1. MLP’s positioning in a changing market 2. Statutory changes 3. Impact of capital market and economic crisis on current business development 4. MLP will benefit from the crisis 5. Summary and Outlook 6. Appendix and Contact Page 2 Roadshow London – November 18, 2009
Slide 3: Strategic realignment
Strategic realignment Milestones of the past five years 2004 2005 2006 2007 2008/09 • Strengthening • Sale of own • Majority hold- • Establish- • Acquisition of indepen- insurers ing in Feri ment of of TPC dence Finance AG MLP Hyp • Acquisition • Development • Banking license • Accreditation of ZSH
Slide 4: 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 5: Positive development in number of clients continued in Q3
Positive development in number of clients continued in Q3 Number of clients New clients Q3: 9,200 (gross) 781,000 780,000 777,000 773,000 760,000 740,000 728,000 719,000 720,000 713,000 704,000 700,000 680,000 660,000 31/03/08 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 30/09/09 Page 5 Roadshow Lon
Slide 6: Pressure on social security systems is imminent
Pressure on social security systems is imminent Massive increase in the “dependency ratio” for the period 2010 - 2035 Page 6 Roadshow London – November 18, 2009
Slide 7: 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 8: 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 9: 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 10: AuM reached new record high
AuM reached new record high Assets under Management [in € bn] 12.5 12 11.7 11.3 11.4 11.2 6 0 30/09/08 31/12/08 31/03/09 30/06/09 30/09/09 Page 10 Roadshow London – November 18, 2009
Slide 11: Agenda
Agenda 1. MLP’s positioning in a changing market 2. Statutory changes 3. Impact of capital market and economic crisis on current business development 4. MLP will benefit from the crisis 5. Summary and Outlook 6. Appendix and Contact Page 11 Roadshow London – November 18, 2009
Slide 12: 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 13: . . . 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 14: 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 15: 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 16: Agenda
Agenda 1. MLP’s positioning in a changing market 2. Statutory changes 3. Impact of capital market and economic crisis on current business development 4. MLP will benefit from the crisis 5. Summary and Outlook 6. Appendix and Contact Page 16 Roadshow London – November 18, 2009
Slide 17: Highlights 9M and Q3 2009
Highlights 9M and Q3 2009 • Positive revenue development compared to Q2 2009 • AuM reached a new record high of € 12.5 bn • Profitability significantly increased in Q3 • Cost cutting initiative successfully implemented • Market environment remained difficult during Q3 due to capital market and econo
Slide 18: 9M: Revenues decreased due to capital market and economic crisis
9M: Revenues decreased due to capital market and economic crisis Total revenues 9M 2009 [in € million] 406.1 400 345.3 ~ 40 200 378.1 330.2 347.9 305.5 Revenues 100 Revenues: commissions and fees Interest income 30.1 Other revenues 24.8 28.0 15.1 Riester step 0 9M 2008 9M 2009 Page 18 Roadshow Londo
Slide 19: Q3: Positive revenue development
Q3: Positive revenue development Development of total revenues [in € million] 200 189.1 123.8 125.5 113.9 105.9 100 14.9 0 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Page 19 Roadshow London – November 18, 2009
Slide 20: Client focus on non-life segments
Client focus on non-life segments Revenues – commissions and fees [in € million] Q3 2008 Q3 2009 Δ in % 9M 2008 9M 2009 Δ in % Old-age pension provision 70.8 65.1 -8.8 221.5 188.0 -15.1 Health insurance 10.2 10.4 1.3 33.0 33.1 0.3 Non-life insurance 2.8 3.5 24.0 21.6 22.2 2.5 Wealth management 19.4
Slide 21: Profitability significantly improved
Profitability significantly improved Continuing operations Income statement [in € million] Q3 2008 Q3 2009 9M 2008 9M 2009 Total revenues 123.8 113.9 406.1 345.3 • EBIT Q3 more than doubled EBIT 3.4 7.1 39.2 12.9 • 9M: Defense costs € 2.9 m Finance cost -0.1 1.0 -9.0 -1.1 • 9M: Restructuring charges
Slide 22: Agenda
Agenda 1. MLP’s positioning in a changing market 2. Statutory changes 3. Impact of capital market and economic crisis on current business development 4. MLP will benefit from the crisis 5. Summary and Outlook 6. Appendix and Contact Page 22 Roadshow London – November 18, 2009
Slide 23: Strong balance sheet
Strong balance sheet MLP Group – selected balance sheet items [in € million] 31/12/2008 30/09/2009 Intangible assets 162.4 171.1 • Equity ratio 28.0% Financial investments 179.9 201.4 Cash and cash equivalents 38.1 53.8 • Liquid funds € 156 m* Other receivables and other assets 147.1 88.5 • Seasonal
Slide 24: Cost cutting program successfully implemented
Cost cutting program successfully implemented Development of fixed costs 9M [in € million] 221.2 +3.3 -1.7 -9.9 212.9 -4.6 -4.2 204.1 9M 2008 Personnel D & A Other 9M 2009 Restruc- Cost Adjusted (reported) operating (reported) turing and increase fixed costs expenses one-offs due to 9M 2009 acquisit
Slide 25: 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 26: Agenda
Agenda 1. MLP’s positioning in a changing market 2. Statutory changes 3. Impact of capital market and economic crisis on current business development 4. MLP will benefit from the crisis 5. Summary and Outlook 6. Appendix and Contact Page 26 Roadshow London – November 18, 2009
Slide 27: Summary
Summary • MLP is very well positioned in structural growth markets in Germany: y Old-age pension provision, health provision, wealth management • Regulatory changes lead to market consolidation and pressure on earnings • Capital markets and economic crisis burden revenue and earnings development • M
Slide 28: Outlook
Outlook • Market environment remained difficult in Q3 due to economic and capital market crisis • Clients focussed on non-life segments and are still reluctant to invest in long-term old-age provision products or wealth management concepts • Successful cost cutting measures increased profitability i
Slide 29: Agenda
Agenda 1. MLP’s positioning in a changing market 2. Statutory changes 3. Impact of capital market and economic crisis on current business development 4. MLP will benefit from the crisis 5. Summary 6. Outlook 7. Appendix and Contact Page 29 Roadshow London – November 18, 2009
Slide 30: 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 30 Roadshow London – November 18, 2009
Slide 31: 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 32: Independence is key for MLP’s client group
Independence is key for MLP’s client group The most important demands of clients with a 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 acce
Slide 33: Sales force: Focus on quality
Sales force: Focus on quality Number of consultants 3,000 2,418 2,413 2,435 2,405 2,360 2,000 1,000 0 30/09/08 31/12/08 31/03/09 30/06/09 30/09/09 Page 33 Roadshow London – November 18, 2009
Slide 34: Cost cutting program successfully implemented
Cost cutting program successfully implemented Development of fixed costs Q3 [in € million] 74.4 -0.4 -0.1 -6.4 67.5 -0.6 -1.7 65.2 Q3 2008 Personnel D & A Other Q3 2009 Restruc- Cost Adjusted (reported) operating (reported) turing increase fixed costs expenses charges due to Q3 2009 Q3 2009 acquisit
Slide 35: 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 36: TPC boasts first-rate reference clients - nationwide
TPC boasts first-rate reference clients - nationwide Extract Services Industrial Public enterprises Page 36 Roadshow London – November 18, 2009
Slide 37: 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 37 Roadshow London – November 18, 2009
Slide 38: 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 38 Roadshow London – November 18, 2009