Mlp Se · XETR:MLP
Mlp — Non-Deal Roadshow (April 2017)
33 slides from Mlp's roadshow presentation, April 2017
Slide 1: The MLP Group – The partner for all financial matters
The MLP Group – The partner for all financial matters , Management Roadshow
Slide 2: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Key Financials 2016 3. Strategy & Outlook Page 2 April 2017 Management Roadshow
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 517,400* private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, Clients solicitors, engineers and economists) • Around 19,200* corporate and institutional clients *as of December 31, 2016 Brokered premium sum
Slide 5: Attractive dividend policy & stable shareholder structure
Attractive dividend policy & stable shareholder structure 11.8% Pay-out ratio: Return on 50% - 70% of net profit dividend: 6.4% Dividend policy Profit retention required for: 4.0% 3.1% 4.6% 3.3% - Acquisitions 1.9%* - Capital expenditure *influenced by one-off - Capital management (Basel III) expens
Slide 6: 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 7: Market environment remains difficult – Sector-specific key indicators
Market environment remains difficult – Sector-specific key indicators Persons holding comprehensive Premium sum Number of new private health insurance new old-age provision business old-age provision contracts million € billion in thousand 160 5.500 9,00 5,114 8.79 8.77 4,933 150 147.7 145.5 8,60 14
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: MLP is a pioneer in terms of new guarantee products
MLP is a pioneer in terms of new guarantee products Market product mix for newly brokered MLP product mix for newly brokered policies policies (4 %) (12 %) 5% 14 % Purely unit-linked (24 %) 49 % (59 %) 14 % 2016* Classic 2016 (37 %) 46 % New guarantees 72% (64 %) Source: German Insurance Association
Slide 10: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Key Financials 2016 3. Strategy & Outlook Page 10 April 2017 Management Roadshow
Slide 11: 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 12: Assets under management increase to EUR 31.5 billion
Assets under management increase to EUR 31.5 billion – Old age provision bottomed out Assets under management Old-age provision [in € billion] Brokered premium sum Revenue rising for 3 consecutive quarters 35 31.5 [in € million] 30 3,689 [in € million] 4000 3,473 100 Q4 3500 25 90 1,613 2015 2016 94
Slide 13: Gains primarily in the non-life insurance segment
Gains primarily in the non-life insurance segment Revenue € million 2015 2016 in % Q4 2015 Q4 2016 in % Old-age provision 215.7 221.5 2.7 87.8 94.3 7.4 Wealth management 166.0 166.4 0.2 44.7 43.5 –2.7 Health insurance 45.9 45.8 -0.3 12.3 11.8 –4.6 Non-life insurance 54.9 105.6 92.5 18.1 20.0 10.
Slide 14: Operating EBIT at € 35.1 million
Operating EBIT at € 35.1 million Income statement € million Q4 2015 Q4 2016 2015 2016 Total revenue 186.5 191.7 554.3 610.4 Operating EBIT* 23.3 19.3 30.7 35.1 2016: EBIT 23.3 8.2 30.7 19.7 • Efficiency programme: one-off expenses of Finance cost -0.4 -0.4 -2.8 -0.9 € 15.4 million (€ 11.1 million in
Slide 15: Balance sheet – Core capital ratio at 14.2 %
Balance sheet – Core capital ratio at 14.2 % Assets Dec. 31, 2015 Dec. 31, 2016 Intangible assets 174.5 168.4 Equity ratio: 19.7 % Financial assets 147.9 162.3 Return on equity: 3.8 % Receivables from clients in the banking business 542.7 626.5 Receivables from banks in the banking business 600.3 59
Slide 16: Net liquidity of around € 184 million
Net liquidity of around € 184 million [in € million] 1800 1600 123 1400 1200 1000 -1,264 1.217 800 600 400 -189 112 112 112 200 373 112 185 185 185 185 184 184 0 Cash and cash equivalents Financial investments < 1 Receivables from banking Other receivables Liabilities due to banking Short-term provi
Slide 17: The MLP Group agenda
The MLP Group 1. MLP at a glance 2. Key Financials 2016 3. Strategy & Outlook Page 17 April 2017 Management Roadshow
Slide 18: Strategic agenda 2017
Strategic agenda 2017 Strategic Implementation focus 1 • Extension of the scope for action regarding future investments through altered group structure Organic growth • Strengthening of the university segment in the private client business through focus on core topics for young clients and consultan
Slide 19: Banking activities to be bundled at one company
Banking activities with supervisory or regulatory relevance to be bundled at one company in the future Current structure Intended structure as of 2018 MLP AG MLP SE FERI AG MLP FDL AG DOMCURA AG FERI AG „Bank“ „Broker“ DOMCURA AG Current scope of services for clients will be maintained Better op
Slide 20: Scope for action significantly extended through new group structure
Scope for action significantly extended through new group structure Effects on equity At least stable 450 development anticipated 400 Stable + € 75 million 350 by 2021 300 250 200 - 20 % 150 100 2012 2013 2014 2015 2016 2021 Shareholders' equity Eligible own funds Further strengthening of the busi
Slide 21: Private client business – strengthening the university segment
Private client business – strengthening the university segment Number of academics in active employment million • Increasing potential for MLP in the university segment 10.8 10.2 8.6 • Measures of the last few years are having an impact, 7.1 particularly the introduction of a training allowance for
Slide 22: Sharper focus on university segment
Sharper focus on university segment MLP private client business Today: Future: Consultant >6 years with Consultant <6 years with MLP MLP 4 divisional board 4 divisional board 1 divisional board members members member Regional manager (employee) Office managers Office managers Head of university team
Slide 23: Online policy sales successfully launched for basic products
Online policy sales successfully launched for basic products – New client portal enters its first extension phase in April FinTech cooperation partner: FinTech cooperation partner: Online policy sale New client portal • Mobile phone protection online since January 2016 • Travel health insurance onli
Slide 24: 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 2016 2020e Old-age provision incl. occupational pension provision Wealth management 2 %1 % Non-life insurance 4% 3 %3 % 2%3% 80 % 39 % 35 % Health insurance 10 % 21 % Loans an
Slide 25: Cost management bears fruit
Cost management bears fruit Administrative expenses in € million 290 As if DOMCURA had been part of the group 285 285 for a full 12 months ~ 279 280 Costs for the –15 275 273 implementation of the 23 9 altered group ~ 270 270 structure 11 265 260 255 250 2015 2017e operating 2017e including one-off
Slide 26: Outlook: Operating EBIT of at least € 45 million
Outlook: Operating EBIT of at least € 45 million anticipated Forecast development of Qualitative assessment of the administrative expenses development of sales revenues in € million 285 2017 Revenue from old-age provision 0 280 ~279 Revenue from health insurance + 275 Revenue from wealth management
Slide 27: Summary
Summary MLP increased important key performance indicators in 2016. In light of market conditions that remained difficult, this development can be seen as satisfactory. With the change of the group structure and further strengthening of the university segment, MLP is pressing ahead in 2017. De
Slide 28: Appendix
Appendix Page 28 April 2017 Management Roadshow
Slide 29: MLP serves 517,400 private and 19,200 corporate clients
MLP serves 517,400 private and 19,200 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 30: 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 31: 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 32: 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 33: 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