Quarterly Report • Nov 17, 2021
Quarterly Report
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| All figures in € million | Q3 2021 | Q3 2020 | 9M 2021 | 9M 2020 | Change in % |
|---|---|---|---|---|---|
| MLP Group | |||||
| Total revenue | 210.4 | 166.3 | 632.2 | 525.4 | 20.3% |
| Revenue | 206.9 | 164.3 | 618.4 | 512.0 | 20.8% |
| Other revenue | 3.5 | 2.0 | 13.8 | 13.4 | 3.2% |
| Earnings before interest and taxes (EBIT) | 15.9 | 8.1 | 47.3 | 26.8 | 76.4% |
| EBIT margin (in %) | 7.6% | 4.8% | 7.5% | 5.1% | – |
| Net profit | 10.0 | 5.2 | 31.2 | 18.3 | 70.2% |
| Earnings per share (diluted/basic) (in €) | 0.05 | 0.05 | 0.29 | 0.17 | 70.6% |
| Cash flow from operating activities | 79.1 | 55.9 | 459.2 | 214.9 | 113.7% |
| Capital expenditure | 1.9 | 1.9 | 6.3 | 6.6 | −4.5% |
| Shareholders' equity | – | – | 462.1 | 454.0 ¹ | 1.8% |
| Equity ratio (in %) | – | – | 12.9% | 14.0% ¹ | – |
| Balance sheet total | – | – | 3,588.5 | 3,235.0 ¹ | 10.9% |
| Private clients (families) | – | – | 559,500 | 554,900 ¹ | 0.8% |
| Corporate and institutional clients | – | – | 24,600 | 22,500 ¹ | 9.3% |
| Consultants | – | – | 2,051 | 2,086 ¹ | −1.7% |
| Branch offices | – | – | 129 | 129 ¹ | 0.0% |
| University teams | – | – | 104 | 102 ¹ | 0.0% |
| Employees | – | – | 2,095 | 1,856 | 12.9% |
| Brokered new business | |||||
| Old-age provision (premium sum) | 909.8 | 759.7 | 2,507.5 | 2,185.7 | 14.7% |
| Loans and mortgages | 557.8 | 361.5 | 1,985.2 | 1,753.2 | 13.2% |
| Assets under management (in € billion) | – | – | 52.9 | 42.7 ¹ | 23.9% |
| Non-life insurance (premium volume) | – | – | 549.3 | 430.8 ¹ | 27.5% |
| Real estate (brokered volume) | 120.4 | 118.9 | 339.4 | 291.0 | 16.6% |
¹ As of December 31, 2020
| Introductory notes 4 | |
|---|---|
| Profile 4 | |
| Quarterly Group Statement for the first nine months of 2021 5 | |
| Fundamental principles of the group 5 | |
| Change to organsiation and administration 5 | |
| Changes in the scope of consolidation 6 | |
| Business Performance 7 | |
| Results of Operation 8 | |
| Financial Position 11 | |
| Net Assets 13 | |
| Segment Report 14 | |
| Employees and Self-Employed Client Consultants 17 | |
| Forecast 18 | |
| Income statement 19 | |
| Statement of comprehensive income 20 | |
| Statement of financial position 21 | |
| Condensed statement of cash flow 22 | |
| Revenue 23 | |
| Statement of changes in equity 24 | |
| Reportable business segments 25 | |
| Financial calendar 2021 27 | |
| Financial calendar 2022 27 | |
This quarterly Group statement presents significant events and business transactions of the first nine months of 2021 and updates forecast-oriented information contained in the last joint management report. The Annual Report is available on our website at www.mlp-se.com and also at www.mlp-annual-report.com. In the description of the MLP Group's financial position, net assets and results of operations pursuant to International Financial Reporting Standards (IFRS), the previous year's figures are given in brackets. The information in this quarterly Group statement has neither been verified by an auditor nor subjected to a review.
The MLP Group and its brands Deutschland.Immobilien, DOMCURA, FERI, MLP, RVM and TPC is the financial services provider for private, corporate and institutional clients. Special added value is created by networking the various perspectives and areas of expertise – enabling clients to reach better financial decisions. To this end, the MLP Group competently combines personal and digital offers. Several of the brands also offer selected products, services and technology for other financial services providers
An intensive transfer of knowledge and expertise takes place within the network. The specialists support one another in the areas of research and concept development, as well as in client consulting. This valuable and targeted interaction generates additional value for clients, as well as for the company and its shareholders. Economic success also forms the basis for accepting social responsibility.
The group was founded in 1971 and today manages for just under 560,000 private and 24,500 corporate clients just under EUR 53 billion in assets and a portfolio volume of around EUR 550 million in non-life insurance. In addition to this, more than 10,000 financial services providers take up the services on offer.
The values disclosed in the following quarterly statement have been rounded to one decimal place. As a result, differences to reported total amounts may arise when adding up the individual values.
In comparison with the corporate profile described in MLP's 2020 Annual Report, the changes presented below were made during the reporting period. These relate to organisation and administration.
You can find detailed information on our business model, our corporate structure and our control system in the MLP Group Annual Report 2020 at www.mlp-annual-report.com.
On February 8, 2021, MLP Assekuranzmakler Holding GmbH (formerly: MLP Consult GmbH), today operating as RVM GmbH, signed the acquisition agreement for 100 % of the shares in RVM Versicherungsmakler GmbH & Co. KG., including its main subsidiaries ("RVM"). With its well-established business model, the industrial insurance broker RVM has a strong focus on small and medium-sized enterprises and supports more than 2,500 companies in this segment. The acquisition constitutes the essential basis for developing the commercial and industrial insurance market segment. The intention is to add small market members to RVM and thus establish a broker group that can operate at eye level with the top ten in Germany in the medium term. The transaction was completed on schedule on April 1, 2021, with economic effect from January 1, 2021. In line with IFRS stipulations, changes in the earnings of these entities are reported in shareholders' equity up to the actual closing date. The income statement was therefore only affected as of April 1, 2021.
With the agreement dated May 12, 2021 MLP Assekuranzmakler Holding GmbH, today operating as RVM GmbH, acquired 100 % of the shares in Adolph Jahn GmbH & Co. KG, Sengstack & Sohn GmbH & Co. KG, Hans L. Grauerholz GmbH and Erich Schulz GmbH. This corporate alliance hereafter referred to as Jahn Hamester Group has a great deal of expertise in the field of transport insurance and generates annual sales revenue of € 2 million with just 15 employees. The transaction has been completed in Q3 2021.
The new Industrial Broker segment was included for the first time in the second quarter of 2021. This new segment is currently home to RVM Versicherungsmakler GmbH including its subsidiary RISConsult GmbH, under the holding RVM GmbH. You can find more details on this segment in the segment reporting.
MLP SE was able to continue the growth trend of the last quarters and increase total revenue by 20.3 % in the first nine months of 2021 to a new all-time high of € 632.2 million. MLP recorded growth across all fields of consulting. Two areas made an important contribution to this positive development: wealth management with an increase of 34.6 % and real estate brokerage with an increase of 52.7 %. EBIT rose by 76.5 % to € 47.3 million.
As one important key figure the assets under management in the MLP Group rose once again and reached a new all-time high of € 52.9 billion. The annual non-life insurance premium volume rose to € 549.3 million.
Development of assets under management (all figures in € billion)
Following coronavirus-related declines in the previous year, brokered new business in the old-age provision rose to € 2,507.5 million in the first nine months of the year. Occupational pension provision accounted for 19.6 %, improving by 27.2 % over the previous year. The volume in real estate brokerage was € 339.4 million.
Acquisition of new clients developed positively in the first nine months of the year. By the end of September, MLP was able to acquire a gross number of new family clients of 14,500 (13,100).
At the end of September 2021, the MLP Group served a total of 559,500 family clients (December 31, 2020: 554,900), as well as 24,600 corporate and institutional clients (December 31, 2020: 22,500).
The total revenue generated by the MLP Group rose significantly in the first nine months of the financial year, increasing by 20.3 % over the same period in the previous year to € 632.2 million (€ 525.4 million). At € 608.8 million, commission income made the greatest contribution to this (€ 500.3 million). Revenue from the interest rate business continued to decrease slightly to € 9.6 million (€ 11.7 million) due to the ongoing period of low interest rates. At € 13.8 million (€ 13.4 million), other revenue remained virtually unchanged.
The continued revenue growth was driven by positive developments in all fields of consulting. Wealth management recorded highly dynamic growth, with commission income rising by 34.6 % to € 249.8 million (€ 185.6 million). This was mainly due to the continued high level of performance fees. These are accrued in the wealth management business at our subsidiary FERI for the performance of investment concepts and are largely recognised in profit or loss. At € 39.7 million (€ 26.0 million), revenue from real estate brokerage also recorded a significant increase of 52.7 %. Besides revenue from real estate brokerage this figure also includes revenue from real estate project planning. In the reporting period, this revenue was € 12.0 million (€ 0.3 million).
Revenue from old-age pension provision increased by 10.8 % to € 137.9 million (€ 124.5 million). Both private and occupational pension provision contributed to this development. Revenue in the non-life insurance field of consulting increased by 9.8 % to € 121.4 million (€ 110.6 million). Health insurance also displayed positive development, with revenue increasing by 10.0 % to € 40.8 million (€ 37.1 million). Revenue from loans and mortgages also recorded a further increase as of September 30. At € 15.9 million, it was 16.9 % higher than in the previous year (€ 13.6 million).
Other commission and fees were € 3.3 million, following € 3.0 million in the previous year.
Inventory changes result from real estate development and represent the change in asset values generated in the current phase of the projects within the reporting period. This item will increase as the respective projects progress and then decline again with the gradual sale of project units. Inventory changes were € 12.3 million in the reporting period (€ 4.1 million).
Commission expenses primarily comprise performance-linked commission payments to our consultants. This item also includes the commissions paid in the DOMCURA segment. These variable expenses occur due to the compensation of brokerage services in the non-life insurance business. Commission expenses are also accrued in the Holding and Others segment. These are essentially the result of expenses from real estate development and real estate brokerage. Added to these are the commissions paid in the FERI segment, which in particular result from the activities in the field of fund administration. Variable compensation is, for example, accrued in this business segment from compensation of the depository bank and fund sales.
In the light of increased commission income, commission expenses rose to € 335.4 million (€ 275.1 million). This item also includes expenses from real estate development of € 22.0 million (€ 4.3 million), which were accrued in the Holding and Others segment. Interest expenses amounted to € 0.3 million (€ 0.3 million). The item valuation result/loan loss provisions declined from € –2.5 million to € –1.5 million. The higher figure for the previous year can essentially be attributed to losses associated with the fair value measurement of financial investments in the Banking segment, which were accrued in the context of the market turbulence caused by the coronavirus pandemic and were essentially recorded in the first quarter of 2020.
Administrative expenses (defined as the sum of personnel expenses, depreciation/amortisation and impairment, as well as other operating expenses) totalled € 263.2 million and were thus above the previous year's level (€ 227.4 million). It is important to note here that the entities of the new Industrial Broker segment has been included in the consolidation since the second quarter of 2021. At the same time, consulting expenses increased in the course of our M&A activities in the first half of the year as well as expenses for IT. This is, in particular, reflected in other operating expenses, which rose to € 113.4 million (€ 98.4 million). Personnel expenses rose to € 127.2 million (€ 108.3 million). Factors contributing to this increase are the announced strengthening of the young segment, a slightly higher overall number of employees, higher performance-linked compensation components and general salary increases. Depreciation/amortisation and impairments increased slightly to € 22.6 million (€ 20.7 million).
Earnings at MLP Hyp, which are disclosed as earnings from investments accounted for using the equity method as a joint venture with Interhyp, increased to € 3.2 million (€ 2.6 million). This item also comprises earnings of the project entitiy of the DI Group included at equity which was just under € 0.0 million (€ 0.1 million) in the reporting period. Total earnings from investments accounted for using the equity method were € 3.2 million (€ 2.7 million).
In the third quarter alone, commission expenses increased to € 114.7 million (€ 86.9 million). At € 0.1 million (€ 0.1 million), interest expenses remained unchanged.
At € 90.3 million, administration costs in the third quarter were above the previous year's figure (€ 73.8 million). Personnel expenses rose to € 42.5 million (€ 34.3 million) as a result of the effects already described. Depreciation/amortisation and impairments were € 7.5 million (€ 6.9 million). Other operating expenses rose to € 40.3 million (€ 32.6 million).
Set against the background of performance fees that remained high, earnings before interest and taxes (EBIT) increased significantly in the first nine months of the year increased significantly to € 47.3 million (€ 26.8 million). EBIT was therefore 76.5 % above the previous year's figure.
EBIT development (all figures in € million)
The finance cost in the reporting period was € –2.7 million (€ –1.9 million). Earnings before taxes (EBT) were therefore € 44.6 million, following € 25.0 million in the previous year. The tax rate was 30.1 % (26.6 %). Group net profit was € 31.2 million (€ 18.3 million). The diluted and basic earnings per share were € 0.29 (€ 0.17).
| All figures in € million | 9M 2021 | 9M 2020 | Change in % |
|---|---|---|---|
| Total revenue | 632.2 | 525.4 | 20.3% |
| Gross profit 1 | 308.9 | 254.1 | 21.6% |
| Gross profit margin (in %) | 48.9% | 48.4% | – |
| EBIT | 47.3 | 26.8 | 76.4% |
| EBIT margin (in %) | 7.5% | 5.1% | – |
| Finance cost | −2.7 | −1.9 | 43.3% |
| EBT | 44.6 | 25.0 | 78.9% |
| EBT margin (in %) | 7.1% | 4.8% | – |
| Income taxes | −13.4 | −6.6 | 102.8% |
| Net profit | 31.2 | 18.3 | 70.2% |
| Net margin (in %) | 4.9% | 3.5% | – |
1 Definition: Gross profit is the result of total revenue less commission expenses, interest expenses and any inventory changes
You can find detailed information on the objectives of financial management in the 2020 Annual Report of the MLP Group at www.mlp-annual-report.com.
For the long-term financing of the Group, we currently use external funds only to a limited extent in the form of securities issues or the issuance of promissory note loans and the taking up of loans. Our non-current assets are financed by our shareholders' equity and non-current liabilities. Current liabilities due to clients and banks in the banking business represent further refinancing funds that are generally available to us in the long term.
As of June 30, 2021, liabilities due to clients and financial institutions in the banking business amounted to € 2,667.4 million (December 31, 2020: € 2,379.4 million) were offset on the assets side of the balance sheet by receivables from clients and financial institutions in the banking business of € 1,480.7 million (December 31, 2020: € 1,632.1 million).
We did not perform any increase in capital stock in the reporting period.
Cash flow from operating activities increased to € 459.2 million from € 214.9 million in the same period of the previous year. Here, significant cash flows result from the deposit business with our clients and from the investment of these funds.
Cash flow from investing activities changed from € –37.4 million to € –55.4 million. In the reporting period, less time deposits were invested than in the same period of the previous year. This was offset by the payment of the purchase price in connection with the acquisition of RVM.
As at the end of the first nine months of 2021, the MLP Group has access to cash holdings of around € 1,348 million. A good level of liquid funds therefore remains available. There are sufficient cash reserves available to the MLP Group. Alongside cash holdings, free lines of credit are also in place.
The investment volume of the MLP Group was € 6.3 million (€ 6.6 million) in the first nine months of 2021. Including the purchase price component already paid in the course of the acquisition of the RVM Group and the Jahn Hamester Group, the investment volume was € 66.9 million.
Without taking into account the aforementioned cash price payment, the majority of funds invested is spread across the segments of Financial Consulting (€ 2.3 million), DOMCURA (€ 1.8 million) and FERI (€ 1.5 million). Investments in operating and office equipment, as well as software and IT represented one focus here.
As of September 30, 2021, the balance sheet total of the MLP Group rose to € 3,588.5 million (December 31, 2020: € 3,235.0 million). On the assets side of the balance sheet, intangible assets increased to € 221.0 million (December 31, 2020: € 178.9 million). The increase in this item can essentially be attributed to the acquisitions. Financial investments were € 126.3 million (December 31, 2020: € 125.1 million). Investments accounted for using the equity method decreased sightly to € 4.9 million (€ 5.4 million).
Receivables from clients in the banking business were € 928.9 million (December 31, 2020: € 880.6 million). Receivables from banks in the banking business fell significantly to € 551.8 million (December 31, 2020: € 751.5 million). The decline is essentially due to a reduced investment volume in time deposits, as well as a lower volume of promissory note bonds. Financial assets declined to € 194.6 million (December 31, 2020: € 197.6 million).
Other receivables and other assets remained virtually unchanged at € 205.4 million (December 31, 2020: € 199.8 million). This item essentially contains commission receivables from insurers resulting from the brokerage of insurance products. Due to the typically strong year-end business, these increase considerably at the end of the year and then decline again during the course of the following financial year. Cash and cash equivalents rose markedly to € 1,300.7 million (December 31, 2020: € 859.0 million). This increase can be attributed to a greater deposit volume at Deutsche Bundesbank.
The "Inventories" item disclosed in the balance sheet essentially represents the assets of the project enterprises within the DI Group. As of September 30, 2021 it rose to € 30.2 million (December 31, 2020: € 17.8 million).
As of the reporting date of September 30, 2021, the shareholders' equity of the MLP Group rose slightly to € 462.1 million (December 31, 2020: € 454.0 million). Minority interests in equity are also disclosed in the balance sheet due to the acquisition of a majority holding in the DI Group. These amounted to € 0.6 million as of the reporting date (December 31, 2020: € 0.8 million). The balance sheet equity ratio was 12.9 % (December 31, 2020: 14.0 %).
Provisions decreased to € 109.9 million (December 31, 2020: € 115.8 million). This decrease is mainly attributable to the reductions in provisions for client support commission after this was paid on schedule in the course of the second quarter. Liabilities due to clients in the banking business increased to € 2,544.8 million (December 31, 2020: € 2,271.9 million) and reflect a further increase in client deposits. Liabilities due to banks in the banking business rose to € 122.5 million (December 31, 2020: € 107.5 million). Other liabilities increased to € 316.3 million (December 31, 2020: € 265.7 million). The increase resulted in particular from borrowings and two purchase price liabilities.
The MLP Group is broken down into the following segments:
The Financial Consulting segment includes revenue generated in the fields of consulting of old-age provision, health and non-life insurance, loans & mortgages and real estate brokerage. This figure also includes revenue from real estate brokerage in the DI Group. All banking services for both private and corporate clients, from wealth management, accounts and cards, through to the interest rate business, are brought together in the Banking segment. The FERI segment primarily generates revenue from the wealth management field of consulting, while the DOMCURA segment generates most of its revenue from the non-life insurance business.
Alongside MLP SE, the Holding and Others segment includes the project enterprises of the DI Group. Expenses from real estate development are disclosed under "Commission expenses. The "Inventory changes" item also results from real estate development and represents the changes in assets generated in the current phase of the projects within the reporting period. This item will increase as the respective projects progress and then decline again with the gradual sale of project units.
With the acquisition of RVM, MLP has laid the crucial foundation for developing the commercial and industrial insurance market. The acquisition of RVM forms the basis for a systematic expansion of the new Industrial Broker segment. At present, the RVM entities are included in this segment. Similarly to the DOMCURA segment, the majority of revenue and earnings in this segment are essentially generated in the first quarter of each year. This is due to the seasonality of this business. The subsequent quarters up to the end of the year are then generally concluded with negative earnings. Due to the provisions of IFRS, the earnings of the RVM Group are to be disclosed under shareholders' equity until the transaction has been finalised. The income statement of the MLP Group therefore essentially discloses the expenses.
Total revenue in the Financial Consulting segment was € 286.8 million (€ 261.5 million) in the first nine months. Sales revenue was € 268.7 million (€ 245.3 million) while other revenue was € 18.1 million (€ 16.2 million).
Commission expenses increased to € 139.4 million (€ 125.5 million) as a result of a rise in revenue. Valuation result/loan loss provisions were € –0.3 million (€ –0.3 million). Personnel expenses increased slightly to € 59.1 million (€ 52.9 million) due to a special one-off coronavirus payment made to our employees, as well as slightly higher employee numbers and general salary increases. At € 15.2 million (€ 15.1 million), depreciation/amortisation and impairment was virtually unchanged. Other operating expenses totalled € 79.1 million (€ 73.1 million). EBIT declined to € –3.2 million (€ –2.9 million). Finance cost amounted to € –1.4 million (€ –2.4 million). Accordingly, EBT improved to € –4.6 million (€ –5.3 million).
Total revenue in the Banking segment increased to € 78.1 million (€ 69.9 million) in the first nine months, with sales revenues rising sharply to € 75.7 million (€ 64.2 million), in particular reflecting the positive development of the wealth management business at MLP Banking AG. Other revenue declined to € 2.4 million (€ 5.7 million). The previous year's higher figure was due to a one-off positive special effect. Commission expenses increased to € 34.0 million (€ 27.2 million) as a result of positive revenue development. Interest expenses amounted to € 0.1 million (€ 0.2 million).
Valuation result/loan loss provisions remained unaltered at € –0.8 million (€ –2.0 million). Personnel expenses were € 10.1 million (€ 9.3 million), while depreciation/amortisation and impairment remained unaltered at € 0.3 million (€ 0.3 million). Other operating expenses amounted to € 28.4 million (€ 27.2 million).
At € 4.5 million (€ 3.8 million) EBIT was above the previous year – despite the positive one-off special effect recorded in the previous year. Finance cost fell to € 0.0 million (€ 0.9 million). Interest rate effects resulting from a VAT refund had a positive influence on the finance cost in the previous year. EBT reached € 4.5 million, following € 4.7 million in the previous year.
Total revenue in the FERI segment rose by 37.2 % to € 190.6 million in the reporting period (€ 138.9 million), while sales revenue increased from € 136.4 million to € 188.2 million. Alongside the positive overall business development, this increase can once again be attributed to high performance fees from investment concepts. As a result of higher revenue, commission expenses increased to € 98.9 million (€ 77.8 million). Loan loss provisions remained at the previous year's level reaching € –0.3 million (€ –0.1 million).
At € 32.0 million (€ 28.2 million), personnel expenses were slightly above the previous year's level. Depreciation/amortisation and impairments remained virtually unchanged at € 1.8 million (€ 1.7 million). Other operating expenses amounted to € 7.8 million (€ 6.3 million). EBIT doubled to € 49.9 million (€ 24.8 million). With a finance cost of € –0.3 million (€ –0.4 million), EBT was € 49.5 million (€ 24.4 million).
The DOMCURA segment primarily generates revenue from the brokering of non-life insurance. DOMCURA's business model is characterised by a high degree of seasonality. Accordingly, the subsidiary records high revenue and comparably high earnings in the first quarter of each year. This is then typically followed by a loss from Q2 to Q4.
Revenue rose to € 82.5 million (€ 76.8 million) in the period from January to September 2021. This primarily reflects the premium volumes received. Other revenue was € 1.2 million (€ 1.3 million). Total revenue increased to € 83.6 million (€ 78.1 million). Commission expenses rose to € 53.5 million (€ 50.3 million) as a result of higher revenue. These are essentially accrued as variable compensation for brokerage services.
Personnel expenses amounted to € 14.1 million (€ 13.1 million). Depreciation/amortisation and impairment amounted to € 1.9 million (€ 1.7 million). Other operating expenses remained virtually unchanged at € 5.9 million (€ 5.8 million). EBIT rose to € 8.3 million, following € 7.2 million in the previous year. With a finance cost of € –0.2 million (€ –0.1 million), EBT was € 8.1 million (€ 7.0 million).
The Industrial Broker segment primarily generates revenue from the brokering of insurance policies for industrial and commercial clients. Revenue from this segment flows mainly into the non-life insurance sales revenue. Business performance in the Industrial Broker segment is characterised by a high degree of seasonality. Accordingly, the segment records comparably high earnings in the first quarter of each year along with high sales revenues. This is then typically followed by a loss from Q2 to Q4.
The segment currently comprises RVM GmbH (as the holding company), RVM Versicherungsmakler GmbH and RISConsult GmbH. Due to the first-time consolidation of the entities in the Industrial Brokers segment as of the second quarter of 2021, no prior-year figures are available.
Total revenue in the Industrial Broker segment was € 5.5 million. Sales revenue was € 5.3 million, while other revenue was € 0.2 million. Commission expenses were € 0.2 million.
Administration expenses totalled € 7.4 million. At € 5.5 million, personnel expenses represent the largest item here. Depreciation/amortisation and impairment was € 1.0 million and other operating expenses were € 0.9 million.
EBIT stood at € –2.0 million. At a finance cost of € –0.3 million, EBT was € –2.4 million.
Total revenue in the Holding and Others segment rose to € 23.6 million (€ 10.8 million) in the first nine months, while sales revenue increased to € 12.8 million (€ 1.1 million). Following € 9.7 million in the previous year, other revenue increased to € 10.8 million.
Due to higher sales revenue, commission expenses increased to € 22.8 million (€ 4.4 million). Inventory changes rose to € 12,3 million, following € 4.1 million in the previous year. At € 6.4 million (€ 4.9 million), personnel expenses were higher than in the previous year. Among other things, this can be attributed to a higher number of employees. Depreciation/amortisation and impairments increased to € 2.5 million (€ 1.8 million). Other operating expenses rose to € 12.7 million (€ 8.0 million).
EBIT declined to € –8.5 million (€ –4.2 million). The finance cost was € –1.7 million (€ –1.2 million). Accordingly, EBT declined to € –10.3 million (€ –5.4 million).
As MLP is a knowledge-based service provider, qualified and motivated employees and self-employed client consultants represent the most important foundation for sustainable company success. Recruitment of new consultants as well as their qualification and further development therefore represents an important focus along with a continuous development of our HR work.
The number of employees rose to 2,095 (1,856) in the reporting period. The increase is mainly attributable to the acquisition of the RVM Group, which has already been completed.
| Segment | Sep. 30, 2021 | Sep. 31, 2020 |
|---|---|---|
| Financial Consulting 1 | 1,130 | 1,098 |
| Banking | 199 | 193 |
| FERI | 233 | 221 |
| DOMCURA | 304 | 295 |
| Industrial Brokerage 2 | 169 | 0 |
| Holding and Others 3 | 60 | 49 |
| Total | 2,095 | 1,856 |
1 Including TPC, ZSH, DI Sales, DI Web, DI IT and MLP Dialog
2 Since April 1, 2021 RVM, RVM GmbH and RISConsult
3 Since 2019 including DI AG and DI Projects
At 2,051, the number of self-employed client consultants at the end of the first nine months was at the level of the same quarter in the previous year (September 30, 2020: 2,052) and below the figure recorded at the end of 2020 (2,086). As of September 30, 2021, MLP operated 129 representative offices (December 31, 2020: 130). The number of university teams increased to 104 at the end of Q3 (December 31, 2020: 102).
You can find details on our original forecast for the financial year 2021 in the Annual Report of the MLP Group at www.mlp-annual-report.com.
The earnings performance of the first nine months was significantly better than we had expected. This was essentially due to the extremely dynamic development in wealth management with performance fees significantly above expectations. We already communicated this on October 1, 2021 as part of our preliminary results announcement for the first nine months.
When presenting the figures for the first six months of 2021, we substantiated our qualitative estimate of the revenue forecast. Now that the results for the first nine months of the year are available, we specify our expectations again.
Following the extremely positive development recorded in the wealth management business in the first six months of the year, we now expect to see a strong increase in revenue for the entire financial year (the previous expectation was for a slight increase). In non-life insurance, we are now anticipating a slight increase for the year (the previous forecast was for a strong increase).
However, our expectations remain unchanged in the consulting fields of old-age provision (slight increase), health insurance (stable), real estate brokerage (strong increase) and loans and mortgages (strong increase).
For the year 2021, MLP is now expecting to record EBIT significantly above the previously forecast corridor of € 55 to 61 million. We also confirm the mid-term planning, based on which EBIT is likely to rise to around € 75 to 85 million by the end of 2022.
You can find details on our forecast in the Annual Report of the MLP Group at www.mlp-annual-report.com.
These documents contain, among other things, certain forward-looking statements and information on future developments that are based on the convictions of MLP SE's Executive Board as well as assumptions and information currently available to MLP SE. Words such as "expect", "estimate", "assume", "intend", "plan", "should", "could" and "project" as well as similar terms relating to the company are intended to indicate such forward-looking statements, which to that extent are subject to certain uncertainty factors.
Many factors can contribute to the actual results of the MLP Group differing significantly from the future forecasts made in such forward-looking statements.
MLP SE assumes no obligation towards the public to update or correct any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The forward-looking statements reflect the view at the time at which they were made.
| 3rd quarter 2021 |
3rd quarter 2020 |
9 months 2021 |
9 months 2020 |
|
|---|---|---|---|---|
| 206,939 | 164,332 | 618,393 | 511,954 | |
| 3,472 | 2,015 | 13,837 | 13,404 | |
| 210,411 | 166,347 | 632,230 | 525,357 | |
| 10,522 | 1,229 | 12,346 | 4,129 | |
| −114,660 | −86,948 | −335,441 | −275,070 | |
| −76 | −100 | −251 | −317 | |
| −1,000 | 439 | −1,531 | −2,527 | |
| −42,470 | −34,332 | −127,196 | −108,324 | |
| −7,520 | −6,873 | −22,608 | −20,656 | |
| −40,312 | −32,591 | −113,404 | −98,449 | |
| 995 | 882 | 3,153 | 2,671 | |
| 15,890 | 8,053 | 47,298 | 26,813 | |
| 242 | 113 | 366 | 1,111 | |
| −1,132 | −1,038 | −2,970 | −2,870 | |
| −32 | 21 | −55 | −97 | |
| −923 | −904 | −2,659 | −1,855 | |
| 14,967 | 7,149 | 44,639 | 24,958 | |
| −4,928 | −1,951 | −13,441 | −6,629 | |
| 10,039 | 5,198 | 31,198 | 18,329 | |
| 10,083 | 5,118 | 31,362 | 18,749 | |
| −44 | 80 | −164 | −420 | |
| 0.09 | 0.05 | 0.29 | 0.17 | |
¹ Basis of calculation: average number of ordinary shares outstanding as of September 30, 2021: 109.242.428
| All figures in €'000 | 3rd quarter 2021 | 3rd quarter 2020 | 9 months 2021 | 9 months 2020 |
|---|---|---|---|---|
| Net profit | 10,039 | 5,198 | 31,198 | 18,329 |
| Gains/losses due to the revaluation of defined benefit obligations |
−64 | 189 | 2,680 | −2,627 |
| Deferred taxes on non-reclassifiable gains/losses | 19 | −57 | −788 | 771 |
| Non-reclassifiable gains/losses | −45 | 132 | 1,892 | −1,856 |
| Other comprehensive income | −45 | 132 | 1,892 | −1,856 |
| Total comprehensive income | 9,994 | 5,330 | 33,090 | 16,474 |
| Of which attributable to | ||||
| owners of the parent company | 10,038 | 5,250 | 33,254 | 16,894 |
| minority interests | −44 | 80 | −164 | −420 |
| all figures in €'000 | Sept. 30, 2021 |
Dec 31, 2020 |
|---|---|---|
| Intangible assets | 221,034 | 178,872 |
| Property, plant and equipment | 126,285 | 125,069 |
| Investments accounted for using the equity method | 4,934 | 5,426 |
| Deferred tax assets | 12,464 | 9,580 |
| Receivables from clients in the banking business | 928,868 | 880,649 |
| Receivables from banks in the banking business | 551,825 | 751,466 |
| Financial assets | 194,620 | 197,623 |
| Inventories | 30,163 | 17,817 |
| Tax refund claims | 12,128 | 9,733 |
| Other receivables and assets | 205,425 | 199,753 |
| Cash and cash equivalents | 1,300,729 | 859,041 |
| Total | 3,588,475 | 3,235,028 |
| Sept. 30, all figures in €'000 2021 Dec 31, 2020 Equity attributable to MLP SE shareholders 461,492 Minority interests 612 Total shareholders' equity 462,103 |
|
|---|---|
| 453,243 | |
| 776 | |
| 454,019 | |
| Provisions 109,947 |
115,799 |
| Deferred tax liabilities 8,423 |
9,167 |
| Liabilities due to clients in the banking business 2,544,843 |
2,271,919 |
| Liabilities due to banks in the banking business 122,520 |
107,471 |
| Tax liabilities 24,342 |
10,932 |
| Other liabilities 316,297 |
265,722 |
| Total 3,588,475 |
3,235,028 |
| all figures in €'000 | 9 months 2021 | 9 months 2020 |
|---|---|---|
| Cash and cash equivalents at beginning of period | 855,797 | 510,778 |
| Cash flow from operating activities | 459,243 | 214,914 |
| Cash flow from investing activities | −37,389 | −55,445 |
| Cash flow from financing activities | 19,833 | −31,967 |
| Change in cash and cash equivalents | 441,687 | 127,502 |
| Liabilities to banks due on demand (excluding the banking business) | −67 | - |
| Cash and cash equivalents at end of period | 1,297,417 | 638,280 |
| all figures in €'000 | 3rd quarter 2021 | 3rd quarter 2020 |
|---|---|---|
| Cash and cash equivalents at beginning of period | 1,205,442 | 587,624 |
| Cash flow from operating activities | 79,116 | 55,927 |
| Cash flow from investing activities | 11,538 | −2,230 |
| Cash flow from financing activities | 965 | −3,041 |
| Change in cash and cash equivalents | 91,619 | 50,656 |
| Liabilities to banks due on demand (excluding the banking business) | 357 | - |
| Cash and cash equivalents at end of period | 1,297,417 | 638,280 |
| all figures in €'000 | 3rd quarter 2021 | 3rd quarter 2020 | 9 months 2021 | 9 months 2020 |
|---|---|---|---|---|
| Wealth management | 90,413 | 65,375 | 249,789 | 185,553 |
| Old-age provision | 49,663 | 45,641 | 137,911 | 124,511 |
| Non-life insurance | 27,117 | 22,322 | 121,445 | 110,550 |
| Health insurance | 12,597 | 11,907 | 40,770 | 37,116 |
| Real estate brokerage | 17,421 | 9,849 | 39,710 | 25,958 |
| Loans and mortgages | 5,284 | 4,852 | 15,867 | 13,621 |
| Other commissions and fees | 1,217 | 670 | 3,323 | 2,963 |
| Total commission income | 203,712 | 160,616 | 608,816 | 500,273 |
| Interest income | 3,227 | 3,716 | 9,577 | 11,680 |
| Total | 206,939 | 164,332 | 618,393 | 511,954 |
| Equity attributable to MLP SE shareholders | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| All figures in €'000 | Share capital | Capital reserves |
Revaluation gains/losses related to defined benefit obligations after taxes |
Retained earnings |
Total | Minority interests |
Total shareholders' equity |
|||||||
| As of January 1, 2020 | 109,334 | 149,853 | −17,547 | 194,966 | 436,605 | 787 | 437,392 | |||||||
| Acquisition of treasury stock | −8 | - | - | −266 | −274 | - | −274 | |||||||
| Share-based payment | - | −851 | - | - | −851 | - | −851 | |||||||
| Dividend | - | - | - | −22,958 | −22,958 | - | −22,958 | |||||||
| Transactions with owners | −8 | −851 | - | −23,225 | −24,084 | - | −24,084 | |||||||
| Net profit | - | - | - | 18,749 | 18,749 | −420 | 18,329 | |||||||
| Other comprehensive income | - | - | −1,856 | - | −1,856 | - | −1,856 | |||||||
| Total comprehensive income | - | - | −1,856 | 18,749 | 16,894 | −420 | 16,474 | |||||||
| As of September 30, 2020 | 109,326 | 149,001 | −19,403 | 190,491 | 429,415 | 367 | 429,782 | |||||||
| As of January 1, 2021 | 109,326 | 149,918 | −20,995 | 214,994 | 453,243 | 776 | 454,019 | |||||||
| Acquisition of treasury stock | −12 | - | - | −59 | −71 | - | −71 | |||||||
| Share-based payment | - | −726 | - | - | −726 | - | −726 | |||||||
| Dividend | - | - | - | −25,142 | −25,142 | - | −25,142 | |||||||
| Transactions with owners | −12 | −726 | - | −25,201 | −25,939 | - | −25,939 | |||||||
| Net profit | - | - | - | 31,362 | 31,362 | −164 | 31,198 | |||||||
| Other comprehensive income | - | - | 1,892 | - | 1,892 | - | 1,892 | |||||||
| Total comprehensive income | - | - | 1,892 | 31,362 | 33,254 | −164 | 33,090 | |||||||
| Changes to the scope of consolidation |
- | - | - | 934 | 934 | - | 934 | |||||||
| As of September 30, 2021 | 109,314 | 149,192 | −19,103 | 222,089 | 461,492 | 612 | 462,103 |
| Financial Consulting |
Banking | FERI | DOMCURA | Industrial broker | Holding and Others | Consolidation | Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
3rd quarter |
|||
| all figures in €'000 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||
| Revenue | 87,987 | 80,487 | 26,572 | 22,297 | 68,653 | 48,012 | 18,216 | 16,212 | 2,758 | - | 6,874 | 1,106 | −4,122 | −3,781 | 206,939 | 164,332 | ||
| of which total inter-segment revenue |
2,364 | 2,431 | 1,759 | 1,350 | - | - | - | - | - | - | - | - | −4,122 | −3,781 | - | - | ||
| Other revenue | 4,995 | 4,789 | 827 | 707 | 640 | 301 | 373 | 286 | 162 | - | 3,733 | 3,196 | −7,257 | −7,264 | 3,472 | 2,015 | ||
| of which total inter-segment revenue |
3,284 | 3,435 | 708 | 703 | - | - | - | 6 | - | - | 3,264 | 3,120 | −7,257 | −7,264 | - | - | ||
| Total revenue | 92,982 | 85,276 | 27,398 | 23,004 | 69,293 | 48,313 | 18,589 | 16,498 | 2,921 | - | 10,607 | 4,302 | −11,379 | −11,045 | 210,411 | 166,347 | ||
| Inventory changes | - | - | - | - | - | - | - | - | - | - | 10,522 | 1,229 | - | - | 10,522 | 1,229 | ||
| Commission expenses | −44,689 | −40,867 | −12,112 | −9,550 | −33,501 | −27,469 | −11,475 | −10,676 | −112 | - | −16,616 | −1,541 | 3,845 | 3,155 −114,660 | −86,948 | |||
| Interest expenses | - | - | −63 | −84 | - | - | - | - | - | - | - | - | −13 | −16 | −76 | −100 | ||
| Valuation result/loan loss provisions | −199 | 102 | −552 | 322 | −197 | 0 | −9 | 4 | 0 | - | −43 | 10 | - | - | −1,000 | 439 | ||
| Personnel expenses | −18,470 | −16,715 | −3,201 | −2,944 | −11,588 | −8,946 | −4,389 | −4,089 | −2,737 | - | −2,086 | −1,638 | - | - | −42,470 | −34,332 | ||
| Depreciation and impairments | −5,109 | −4,995 | −96 | −94 | −582 | −579 | −609 | −577 | −502 | - | −622 | −627 | - | - | −7,520 | −6,873 | ||
| Other operating expenses | −28,519 | −23,811 | −9,662 | −9,318 | −2,516 | −1,884 | −2,127 | −2,186 | −477 | - | −4,327 | −2,364 | 7,315 | 6,972 | −40,312 | −32,591 | ||
| Earnings from investments accounted for using the equity method |
997 | 884 | - | - | - | - | - | - | - | - | −2 | −2 | - | - | 995 | 882 | ||
| Earnings before interest and tax (EBIT) |
−3,006 | −125 | 1,712 | 1,335 | 20,909 | 9,435 | −20 | −1,026 | −906 | - | −2,566 | −632 | −232 | −934 | 15,890 | 8,053 | ||
| Other interest and similar income | 321 | 96 | 12 | 8 | −37 | −23 | −19 | −5 | −3 | - | 194 | 77 | −224 | −40 | 242 | 113 | ||
| Other interest and similar expenses | −622 | −913 | −4 | −6 | −90 | −114 | −7 | −9 | −163 | - | −837 | −481 | 591 | 485 | −1,132 | −1,038 | ||
| Valuation result not relating to operating activities |
−35 | 8 | - | - | - | - | - | - | - | - | 2 | 13 | - | - | −32 | 21 | ||
| Finance cost | −336 | −809 | 8 | 2 | −127 | −138 | −27 | −14 | −166 | - | −641 | −390 | 366 | 445 | −923 | −904 | ||
| Earnings before tax (EBT) | −3,343 | −934 | 1,720 | 1,337 | 20,782 | 9,297 | −47 | −1,040 | −1,072 | - | −3,207 | −1,022 | 134 | −489 | 14,967 | 7,149 | ||
| Income taxes | −4,928 | −1,951 | ||||||||||||||||
| Net profit | 10,039 | 5,198 | ||||||||||||||||
| of which attributable to | ||||||||||||||||||
| owners of the parent company | 10,083 | 5,118 | ||||||||||||||||
| minority interests | −44 | 80 |
| Financial Consulting |
Banking | FERI | DOMCURA | Industrial broker Holding and Others |
Consolidation | Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | 9 months | |
| all figures in €'000 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| Revenue | 268,703 | 245,329 | 75,661 | 64,242 | 188,238 | 136,431 | 82,460 | 76,843 | 5,302 | - | 12,820 | 1,122 | −14,789 | −12,014 | 618,393 | 511,954 |
| of which total inter-segment | ||||||||||||||||
| revenue | 9,765 | 8,084 | 5,024 | 3,929 | - | - | - | - | - | - | - | - | −14,789 | −12,014 | - | - |
| Other revenue | 18,090 | 16,153 | 2,422 | 5,677 | 2,364 | 2,471 | 1,179 | 1,255 | 233 | - | 10,758 | 9,653 | −21,210 | −21,805 | 13,837 | 13,404 |
| of which total inter-segment revenue |
9,877 | 10,293 | 2,042 | 2,154 | - | - | - | 6 | - | 9,291 | 9,351 | −21,210 | −21,805 | - | - | |
| Total revenue | 286,793 | 261,482 | 78,082 | 69,919 | 190,602 | 138,902 | 83,639 | 78,098 | 5,535 | - | 23,578 | 10,775 | −35,999 | −33,819 | 632,230 | 525,357 |
| Inventory changes Commission expenses |
- | - −139,393 −125,536 |
- −33,961 |
- −27,151 |
- −98,938 |
- −77,841 |
- −53,473 |
- −50,331 |
- −165 |
- - |
12,346 −22,822 |
4,129 −4,361 |
- 13,310 |
- | 12,346 10,149 −335,441 −275,070 |
4,129 |
| Interest expenses | - | - | −119 | −212 | - | - | - | - | - | - | - | - | −132 | −105 | −251 | −317 |
| Valuation result/loan loss provisions | −347 | −345 | −780 | −1,979 | −276 | −74 | −68 | −14 | 0 | - | −60 | −114 | - | - | −1,531 | −2,527 |
| Personnel expenses | −59,117 | −52,924 | −10,076 | −9,307 | −32,014 | −28,162 | −14,076 | −13,052 | −5,464 | - | −6,449 | −4,878 | - | - −127,196 −108,324 | ||
| Depreciation and impairments | −15,233 | −15,103 | −288 | −283 | −1,754 | −1,712 | −1,857 | −1,749 | −1,004 | - | −2,471 | −1,809 | - | - | −22,608 | −20,656 |
| Other operating expenses | −79,078 | −73,102 | −28,383 | −27,189 | −7,756 | −6,318 | −5,901 | −5,786 | −927 | - | −12,665 | −7,979 | 21,307 | 21,924 −113,404 | −98,449 | |
| Earnings from investments accounted for using the equity |
||||||||||||||||
| method | 3,159 | 2,591 | - | - | - | - | - | - | - | - | −6 | 80 | 0 | 0 | 3,153 | 2,671 |
| Earnings before interest and tax (EBIT) |
−3,217 | −2,938 | 4,475 | 3,798 | 49,864 | 24,794 | 8,264 | 7,166 | −2,025 | - | −8,549 | −4,156 | −1,513 | −1,851 | 47,298 | 26,813 |
| Other interest and similar income | 707 | 167 | 46 | 923 | −56 | −46 | −136 | −104 | −8 | - | 320 | 196 | −508 | −25 | 366 | 1,111 |
| Other interest and similar expenses | −2,032 | −2,474 | −12 | −47 | −284 | −318 | −22 | −28 | −336 | - | −2,040 | −1,406 | 1,756 | 1,404 | −2,970 | −2,870 |
| Valuation result not relating to operating activities |
−60 | −91 | - | - | - | - | - | - | - | - | 5 | −6 | - | - | −55 | −97 |
| Finance cost | −1,384 | −2,397 | 34 | 876 | −340 | −364 | −157 | −132 | −344 | - | −1,715 | −1,217 | 1,248 | 1,379 | −2,659 | −1,855 |
| Earnings before tax (EBT) | −4,602 | −5,335 | 4,510 | 4,674 | 49,524 | 24,430 | 8,107 | 7,034 | −2,370 | - | −10,264 | −5,373 | −266 | −472 | 44,639 | 24,958 |
| Income taxes | −13,441 | −6,629 | ||||||||||||||
| Net profit | 31,198 | 18,329 | ||||||||||||||
| of which attributable to | ||||||||||||||||
| owners of the parent company | 31,362 | 18,749 | ||||||||||||||
| minority interests | −164 | −420 |
November 11, 2021 Publication of the resutls for the first nine months and third quarter of 2021
November 22 to 24, 2021 Company presentation at the Virtual German Equity Forum
January 17, 2022 Kepler Cheuvreux German Corporate Conference
March 10, 2022 Online annual press and analyst conference
Publication of the Annual Report for the financial year 2021
May 12, 2022 Publication of the results for the first quarter of 2022
June 2, 2022 Annual General Meeting of MLP SE
August 12, 2022 Publication of the results for the half year and the second quarter of 2022
November 10, 2022 Publication of the results for the first nine months and the third quarter of 2022
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