Slide 1: The MLP Group – The partner for all financial matters
The MLP Group – The partner for all financial matters , Frankfurt, November 2016 German Equity Forum
Slide 2: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Market environment 3. Strategic Agenda 4. Financial Development 5. Outlook Page 2 November 2016 German Equity Forum 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 for The underwriting agency, The Partner for all The specialist in occupational instit
Slide 4: Main business areas
MLP Group – An Overview • Around 515,000* private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, Clients solicitors, engineers and economists) • Around 18,600* corporate and institutional clients *as of September 30, 2016 Brokered premium sum
Slide 5: Attractive dividend policy & stable shareholder structure
Attractive dividend policy & stable shareholder structure 11.8% Pay-out ratio: 50% - 70% of net profit Return on 6.4% Dividend policy Profit retention required for: dividend: 4.0% 4.6% 3.1% 3.3% - Acquisitions - Capital expenditure - Capital management (Basel III) 2010 2011 2012 2013 2014 2015 Dr. h
Slide 6: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Market environment 3. Strategic Agenda 4. Financial Development 5. Outlook Page 6 November 2016 German Equity Forum 2016
Slide 7: Market environment – Fundamental changes taking place
Market environment – Fundamental changes taking place 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 competiti
Slide 8: Significant increase in consolidation within the market due to LVRG
Significant increase in consolidation within the market due to Life Insurance Reform Act (LVRG) Shrinking Number of insurance Effects of the Life Insurance Reform Act intermediaries in Germany (LVRG) 280.000 , 260.000 , • Quality of consultancy and 240.000 , portfolio is even more important 220.000
Slide 9: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Market environment 3. Strategic Agenda 4. Financial development 5. Outlook Page 9 November 2016 German Equity Forum 2016
Slide 10: Strategic portfolio significantly broadened
Strategic portfolio significantly broadened Expansion of Occupational pension provision Clear business model Wealth management Real estate 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 11: Strategic agenda
Strategic agenda 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 • Broadeni
Slide 12: Even more balanced revenue basis in the medium term
Even more balanced revenue basis in the medium term Development of revenue distribution 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 mortgages 10% Other commission and f
Slide 13: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Market environment 3. Strategic Agenda 4. Financial development 5. Outlook Page 13 November 2016 German Equity Forum 2016
Slide 14: 9M: Operating EBIT at € 16.1 million significantly above previous year
9M: Operating EBIT at € 16.1 million significantly above previous year Income statement [in € million] Q3 2015 Q3 2016 9M 2015 9M 2016 122.9 135.0 367.8 Extraordinary charge due to one-off expenses Total revenue 418.7 for announced efficiency measures Operating EBIT* -0.7 6.6 7.4 16.1 • 9M 2016: € 4
Slide 15: 9M: Assets under management reached the EUR 30 billion mark
9M: Assets under management reached the EUR 30 billion mark for the first time – Old age provision bottomed out Assets under management: Old-age provision: • EUR 30 billion mark reached • Product mix changed – early adopter advantage for the first time • Revenue above previous year for 2 consecutive
Slide 16: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Market environment 3. Strategic Agenda 4. Financial development 5. Outlook Page 16 November 2016 German Equity Forum 2016
Slide 17: Outlook: significant increase in EBIT as of 2017
Outlook Qualitative assessment of the development of sales revenues 2016 2017 • Costs will once again be significantly reduced in the financial year 2017 and subsequent Revenue from old-age provision 0 0 years (positive EBIT effect of around EUR 15 Revenue from health insurance + 0 million compared
Slide 18: Questions & Answers
Questions & Answers Happy to take your questions! ? ! Page 18 November 2016 German Equity Forum 2016
Slide 19: Appendix
Appendix Page 19 November 2016 German Equity Forum 2016
Slide 20: Q3: Strong growth in wealth management
Q3: Strong growth in wealth management Revenue [in € million] 9M/2015: Q3 2015 Q3 2016 ∆ in % 9M 2015 9M 2016 ∆ in % • Revenue in old-age provision Old-age provision 44.8 128.0 positively influenced by a 45.7 2 127.2 -1 one-off effect in Q1/2015 Wealth management 38.7 43.5 12 121.3 122.9 1 Health in
Slide 21: Balance sheet
Balance sheet Assets 31/12/2015 30/09/2016 Equity ratio: 20.7 % Intangible Assets 174.5 169.8 Financial Assets 147.9 162.8 Core capital ratio: 12.81 % Receivables from clients in the banking business 542.7 613.2 Receivables from banks in the banking business 600.3 550.2 Other receivables and assets
Slide 22: MLP serves 514,600 private and 18,600 corporate clients
MLP serves 514,600 private and 18,600 corporate clients Client base: family clients / corporate and institutional clients Private clients • Combined individuals: Number of private clients (families) (families) Partner relationship or parents-child 31/12/2015 unit and assigned to the same client 510,
Slide 23: Assets under management passed the EUR 30 billion mark
Assets under management passed the EUR 30 billion mark for the first time Assets under management Premium sum: old-age provision [in € billion] [in € million] 35 30 29,2 29,0 29,3 30.0 29,2 30 2500 28 25 2,014 2,076 26 2000 24 20.2 Q3 20 Q3 770 22 1500 764 15 20 10.8 1000 18 10 H1 H1 16 500 1,250 1,
Slide 24: 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
Slide 25: 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 26: DOMCURA: targeted further development within the MLP Group
DOMCURA: 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 with process ma
Slide 27: 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 28: 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 28 November 2016 German Equity Forum 2016
Slide 29: 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) Client portal One login Dashboard Personal Finance Management (PFM)
Slide 30: 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