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MLP SE

Quarterly Report May 15, 2019

289_10-q_2019-05-15_43305309-32d9-4440-a989-cb5522fbc0a5.pdf

Quarterly Report

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MLP key figures

All figures in € million 1st quarter
2019
1st quarter
2018
Change
in%
MLP Group
Total revenue 177.8 167.9 5.9%
Revenue 174.0 164.7 5.6%
Other revenue 3.8 3.2 18.8%
Earnings before interest and taxes (EBIT) 12.5 13.0 –3.8%
EBIT margin (%) 7.0% 7.7%
Net profit 9.1 9.3 –2.2%
Earnings per share (diluted/undiluted) in € 0.08 0.09
–11.1%
Cashflow from operating activities 117.0 66.7 75.4%
Capital expenditure 1.2 3.2 –62.5%
Shareholders' equity 429.2 424.81 1.0%
Equity ratio (%) 16.6% 17.5%1
Balance sheet total 2,579.9 2,421.01 6.6%
Private clients (Family) 543,250 541,1501 0.4%
Corporate and institutional clients 21,000 20,8921 –0.5%
Consultants 1,910 1,9281 –0.9%
Branch offices 131 1311 0.0%
University teams 84 771 9.1%
Employees 1,745 1,715 1.7%
Arranged new business
Old-age provisions (premium sum) 722.1 659.92 13.5%
Loans and mortgages 492.1 506.1 –2.8%
Assets under management in € billion 36.3 34.51 5.2%

1 As of December 31, 2018.

2 Figure adjusted.

Quarterly Group Statement Q1 2019

Q1 2019 AT A GLANCE

  • Total revenue up 6% to € 177.8 million at the start to the year
  • Growth recorded in all parts of the MLP Group and across virtually all consulting segments
  • At € 12.5 million (Q1 2018: € 13.0 million), EBIT at the same high level recorded in the previous year
  • Forecast confirmed: Despite strong investments in the future to develop the university segment, MLP still anticipates modest EBIT growth

TABLE OF CONTENTS

  • 4 Introductory notes
  • 4 Profile
  • 5 Quarterly Group statement for the 1st quarter of 2019
  • 5 Business performance
  • 6 Results of operations
  • 9 Financial position
  • 10 Net assets
  • 11 Segment report
  • 15 Employees and self-employed client consultants
  • 15 Forecast
  • 16 Income statement and statement of comprehensive income
  • 17 Statement of financial position
  • 18 Condensed statement of cash flow
  • 18 Revenue
  • 19 Statement of changes in equity
  • 20 Reportable business segments

Introductory notes

This quarterly Group statement presents significant events and business transactions of the first quarter of 2019 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.

Profile

The MLP Group – The partner for all financial matters

The MLP Group is the partner for all financial matters – for private clients, as well as companies and institutional investors. With our four brands, each of which enjoys a leading position in their respective markets, we offer a broad range of services:

  • MLP: The dialogue partner for all financial matters
  • FERI: The investment company for institutional investors and high net-worth individuals
  • DOMCURA: The underwriting agency focusing on private and commercial non-life insurance products
  • TPC: The specialist in occupational pension provision management for companies

The views and expectations of our clients always represent the starting point in each of these fields. Building on this, we then present our clients with suitable options in a comprehensible way, so that they can make the right financial decisions themselves. In advising and supporting our clients, we examine the offers of all relevant product providers in the market. Our product ratings are based on scientifically substantiated market and product analyses.

Manfred Lautenschläger and Eicke Marschollek founded MLP in 1971. More than 1,900 selfemployed client consultants and over 1,700 employees work at MLP.

Quarterly Group statement for the 1st quarter of 2019

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 the course of the reporting period no changes occurred to the fundamental principles described in the MLP Group's 2018 Annual Report. The Overall economic climate, the industry situation and the competitive environment have also not changed significantly in comparison with the 2018 Annual Report.

In the reporting period, Willy F.O. Köster GmbH and Walther Versicherungsmakler GmbH were merged with nordias GmbH with retroactive effect from January 1, 2019.

MLP Finanzberatung SE, a 100% subsidiary of MLP SE, signed a contract to acquire a 75.1% stake in the DEUTSCHLAND.Immobilien Group on March 19. The DEUTSCHLAND.Immobilien Group is a marketplace for investment properties and collaborates with around 5,800 sales partners. The comprehensive online platform comprises both third party real estate projects and, in selected areas, also real estate projects developed in-house – above all in the field of senior-citizen housing and nursing care. The company will continue to pursue and further strengthen this successful business model. There is also additional synergy potential in the existing business with MLP's private clients and in the MLP Group overall. The transaction is expected to be completed in Q3 2019.

On the basis of the resolution of the Annual General Meeting from June 29, 2017 to buy back own shares, a total of 536,209 shares with a pro rata amount of € 1.00 each in the share capital were bought back at an average price of € 4.3525 per share in the time period from December 12, 2018 to March 1, 2019. This corresponds to around 0.48% of our share capital of € 109,334,686. The buyback was used to serve a participation programme for our self-employed commercial agents and office managers. The respective buybacks were published in detail on our company's website. Following transfer of the shares to the eligible participants, a total of 386 shares remain in the company's own portfolio.

BUSINESS PERFORMANCE

The MLP Group began the year with further growth in revenue. Revenue rose by 5.6% over the previous year. Above all, MLP benefited from revenue increases in the old-age provision, non-life insurance, wealth management and in health insurance. Following a very strong closing quarter in 2018, revenue in the real estate brokerage was slightly below the previous year's high figure. In the loans and mortgages business, revenue remained at the same level as the previous year. Earnings before interest and taxes (EBIT) were virtually unchanged in the first quarter relative to the previous year's high level.

New clients

In the first three months of the year, MLP was able to acquire 4,100 (4,000) new family clients. As of March 31, 2019, the MLP Group served a total of 543,250 family clients (December 31, 2018: 541,150) and around 21,000 corporate and institutional clients (December 31, 2018: 20,892).

RESULTS OF OPERATIONS

Development of total revenue

In the time period from January to March 2019, total revenue of the MLP Group increased by 5.9% to € 177.8 million (€ 167.9 million). At € 169.8 million (€ 160.4 million), commission income made by far the largest contribution to this. Revenue from the interest rate business of € 4.3 million (€ 4.4 million) was below the previous year's level.

The breakdown by consulting field shows a growth of 12.8% in the old-age provision, in which revenue increased from € 33.7 million to € 38.0 million. Accordingly, the new business displayed a positive development in the first quarter. The brokered premium sum increased by 9.4% to € 722.1 million (€ 659.9 million). The occupational pension provision area contributed 28.6% to this. Revenue in the wealth management area continued to enjoy positive development and increased to € 50.2 million (€ 47.5 million). The MLP Group in particular benefited from increased new business, as well as greater performance-based income from alternative investment concepts at the subsidiary FERI. The drop in performance fees observed in the first quarter in light of volatile investment markets were therefore more than compensated. Assets under management rose to a new record level of € 36.3 billion as at March 31, 2019 (December 31, 2018: € 34.5 billion).

Revenue in the non-life insurance area rose 6.6% to € 59.9 million (€ 56.2 million), reflecting the positive development at both DOMCURA and MLP. The portfolio of non-life insurance policies also enjoyed positive development. The premium volume received through the MLP Group rose to € 392.8 million (December 31, 2018: € 385.6 million).

At € 12.1 million, revenue in the health insurance area was also up on the previous year (€ 11.7 million).

Following the very strong quarter recorded in the previous year, revenue in the loans and mortgages business reached € 5.1 million (€ 5.2 million). Following significant gains in the fourth quarter of the previous year, revenue in the real estate brokerage was below the previous year's figure at € 3.3 million (€ 4.9 million). Other commissions and fees were € 1.1 million (€ 1.2 million).

Analysis of expenses

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. Added to these are commissions paid in the FERI segment, which in particular result from the activities in the fi eld of fund administration. Variable expenses are, for example, accrued in this business segment due to compensation of the depository bank and fund sales.

Set against the background of higher commission income, commission expenses increased to € 94.1 million in the fi rst quarter of 2019 (€ 87.6 million). Interest expenses amounted to € 0.1 million (€ 0.2 million). The total cost of sales thereby increased to € 94.2 million (€ 87.8 million).

Expenses attributable to loan loss provisions amounted to € 0.7 million. Income of € 0.5 million was recognised under this item in the previous year. The increase in loan loss provisions can essentially be attributed to impairment losses recognised in the banking segment.

Administrative expenses (defi ned as the sum of personnel expenses, depreciation/amortisation and impairment, as well as other operating expenses) amounted to € 70.8 million and thus were slightly above the previous year's level (€ 68.0 million). Personnel expenses rose to € 33.6 million (€ 31.4 million). There are various reasons for this, including general salary rises, as well as higher variable compensation and profi t-sharing payments resulting from the successful economic development of the company. Depreciation/amortisation and impairments increased to € 6.3 million (€ 3.8 million). This increase can essentially be attributed to the change in the treatment of leasing liabilities as a result of the new IFRS 16 accounting standard, which has been in force since January 1, 2019. This had the opposite eff ect on other operating expenses, which declined from € 32.8 million to € 30.9 million. In addition one-off consulting expenses of 0.4 million were accrued in the fi rst quarter in the course of acquiring the announced majority stake in the DEUTSCHLAND.Immobilien Group.

Earnings trend

At € 12.5 million in the first quarter, earnings before interest and taxes (EBIT) remained virtually at the same high level as in the previous year (€ 13.0 million). In comparison with the development of total revenue, EBIT remained below the previous year due to the described effects in terms of administration costs, as well as higher loan loss provisions.

Finance cost was virtually unchanged at € –0.2 million (€ –0.4 million). On this basis, earnings before taxes (EBT) were € 12.3 million (€ 12.6 million). The tax rate was 25.5%. Net profit amounted to € 9.1 million (€ 9.3 million). The diluted and basic earnings per share were € 0.08 (€ 0.09).

Structure and changes in earnings in the Group

All figures in € million Q1 2019 Q1 2018 Change in%
Total revenue 177.8 167.9 5.9%
Gross profit1 83.6 80.1 4.4%
Gross profit margin (%) 47.0% 47.7%
EBIT 12.5 13.0 –3.8%
EBIT margin (%) 7.0% 7.7%
Finance cost –0.2 –0.4 50.0%
EBT 12.3 12.6 –2.4%
EBT margin (%) 6.9% 7.5%
Income taxes –3.1 –3.3 6.1%
Net profit 9.1 9.3 –2.2%
Net margin (%) 5.1% 5.5%

1 Definition: Gross profit is the result of total revenue less commission expenses and interest expenses.

FINANCIAL POSITION

You can find detailed information on the objectives of the financial management in the MLP Group 2018 Annual Report under "Financial position"/"Objectives of financial management" at www.mlp-annual-report.com.

Financing analysis

At present, we are not using any borrowed funds in the form of securities or promissory note bond issues to finance the Group long-term. Our non-current assets are financed by 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 March 31, 2019, liabilities due to clients and financial institutions in the banking business of € 1,789.9 million (December 31, 2018: € 1,720.5 million) were offset on the assets side of the balance sheet by receivables from clients and financial institutions in the banking business of € 1,457.9 million (December 31, 2018: € 1,455.2 million).

We did not perform any increase in capital stock in the reporting period.

Liquidity analysis

Cash flow from operating activities increased to € 117.0 from € 66.7 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 € –2.6 million to € –1.3 million. Cash flow from financing activities changed through the first-time adoption of IFRS 16.

As at the end of Q1 2019, the MLP Group has access to cash holdings of around € 554 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.

Capital expenditure analysis

As at the end of March 2019, the investment volume financed from cash flow of the MLP Group was € 1.2 million (€ 3.2 million). The vast majority of capital expenditure was invested in the financial consulting segment, focusing in particular on investments in software and IT.

NET ASSETS

Analysis of the asset and liability structure

As of March 31, 2019 the balance sheet total of the MLP Group was € 2,579.9 million (December 31, 2018: € 2,421.0 million). On the assets side of the balance sheet, the item "Property, plant and equipment" increased to € 132.5 million (€ 78.3 million). This increase can be attributed to the change in the treatment of leasing transactions as a result of the new IFRS 16 accounting standard to be applied from January 1, 2019 onwards. According to the new standard, usage rights from leasing transactions must be disclosed under this item. As of March 31, 2019, these usage rights were € 54.9 million. The counterpart on the equity side of the balance sheet is disclosed under other liabilities. At € 756.7 million (December 31, 2018: € 761.0 million), receivables from clients in the banking business remained at the year-end level of 2018. Receivables from banks in the banking business remained almost unchanged at € 701.2 million (December 31, 2018: € 694.2 million). Financial assets remained stable at € 165.5 million (December 31, 2018: € 165.3 million). Other receivables and assets declined slightly to € 146.0 million. (December 31, 2018: € 158.1 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.

The shareholders' equity of the MLP Group increased to € 429.2 million as of the reporting date (December 31, 2018: € 424.8 million). Group net profit of € 9.1 million also contributed to the increase. The equity ratio was 16.6% (December 31, 2018: 17.5%).

Provisions rose to € 104.7 million (December 31, 2018: € 94.5 million). Among other things, this increase can be attributed to a higher allocation to provisions for bonus schemes, as well as pensions. Liabilities due to clients in the banking business increased to € 1,702.4 million (December 31, 2018: € 1,638.9 million) and reflect the continued rise in client deposits. Liabilities due to banks in the banking business rose to € 87.5 million (December 31, 2018: € 81.6 million). This can mainly be attributed to a higher volume of promotional loans being passed on to our clients. Other liabilities rose to € 240.6 million (December 31, 2018: € 165.8 million), primarily due to the described effects resulting from application of the IFRS 16 standard. The figure includes leasing liabilities of € 55.0 million, as well as increased liabilities from the underwriting business at DOMCURA. Lower commission claims of our consultants had an opposing effect. Due to our typically strong year-end business, the commission claims of our consultants increase markedly on the balance sheet date of December 31, and then decline again in the subsequent quarters.

SEGMENT REPORT

The MLP Group is broken down into the following segments:

  • Financial consulting
  • Banking
  • FERI
  • DOMCURA
  • Holding

The financial consulting segment includes revenue from all fields of consulting – i.e. old-age provision, health and non-life insurance, as well as loans & mortgages and real estate brokerage. The banking segment brings together all banking services for both private and corporate clients – from wealth management, accounts and cards, through to the interest rate business. 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. The Holding segment does not have active operations.

Financial consulting segment

Total revenue in the Financial Consulting segment rose to € 89.8 million in the first quarter. (€ 86.4 million). Sales revenue increased to € 84.2 million (€ 80.7 million) while other revenue remained at the previous year's level of € 5.6 million (€ 5.7 million).

As a result of higher sales revenue, commission expenses increased to € 42.7 million (€ 40.1 million). Personnel expenses increased slightly to € 17.4 million (€ 16.6 million). Among other things, this increase can be attributed to general salary rises. Depreciation and impairment rose as a result of the described IFRS 16 effect, and amortisation expenses for usage rights associated with this increased to € 4.8 million (€ 2.8 million). These leasing expenses were previously disclosed under other operating expenses, which in turn fell to € 23.1 million (€ 24.1 million). However, higher expenses within the scope of our digitalization strategy, as well as consulting expenses in the course of acquiring the DEUTSCHLAND.Immobilien Group served to counteract the positive effect in this item.

EBIT was € 2.2 million as a result of higher expenses (€ 3.0 million). Finance cost amounted to € –0.2 million (€ –0.3 million). EBT reached € 2.0 million (€ 2.6 million).

Banking segment

At € 19.1 million, total revenue in the reporting period was slightly above the previous year's figure (€ 18.9 million). Sales revenue remained unchanged at € 18.1 million (€ 18.1 million). Other revenue was € 1.0 million (€ 0.8 million). Interest income was € 4.3 million (€ 4.4 million).

Commission expenses declined slightly to € 7.2 million (€ 7.4 million). Interest expenses decreased to € 0.1 million (€ 0.2 million).

Expenses attributable to loan loss provisions amounted to € 0.5 million. Income of € 0.8 million was recognised under this item in the previous year. The increase in loan loss provisions can essentially be attributed to impairment charges.

Personnel expenses increased slightly to € 2.9 million, essentially as a result of general salary rises (€ 2.6 million). Depreciation/amortisation and impairments remained unchanged at € 0.0 million (€ 0.0 million). Other operating expenses fell to € 8.1 million (€ 8.7 million).

Particularly in light of higher loan loss provisions, EBIT was € 0.3 million (€ 0.8 million). With a finance cost of € 0.0 million (€ 0.0 million), EBT was € 0.3 million (€ 0.8 million).

FERI segment

Total revenue in the FERI segment rose by 8.9 % to € 37.8 million in the first quarter (€ 34.7 million). Sales revenue increased to € 36.8 million (€ 34.1 million). Supported by increased new business, as well as greater performance-based income from alternative investment concepts it was therefore possible to compensate lower performance fees resulting from capital market developments. Commission expenses increased to € 23.3 million (€ 21.0 million) as a result of a rise in revenue. Personnel expenses increased slightly to € 7.7 million (€ 7.3 million). As a result of the higher total revenue, EBIT improved to € 4.0 million (€ 3.7 million). EBT reached € 3.9 million (€ 3.7 million).

DOMCURA segment

The DOMCURA segment primarily generates revenue from the brokering of non-life insurance policies. 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.

Total revenue rose by 9.4% to € 39.5 million (€ 36.1 million) in Q1. Sales revenue increased to € 39.3 million (€ 35.9 million). This primarily reflects the premium volumes received. Other revenue remained at € 0.2 million (€ 0.2 million). Set against the background of higher revenue, commission expenses increased to € 25.2 million (€ 23.2 million). These are essentially accrued as variable compensation for brokerage services.

At € 6.2 million, administrative expenses were slightly above the previous year's level (€ 5.9 million). € 4.0 million (€ 3.9 million) thereof were attributable to personnel expenses. Depreciation/amortisation and impairments increased to € 0.5 million (€ 0.3 million). Other operating expenses remained unchanged at € 1.7 million (€ 1.7 million).

EBIT rose to € 8.0 million (€ 6.9 million). With a finance cost of € 0.0 million (€ 0.0 million), EBT amounted to € 7.9 million (€ 6.9 million).

Holding segment

The Holding segment does not have active operations. Total revenue amounted to € 2.3 million (€ 2.2 million) in the first quarter and essentially results from the letting of buildings to affiliated companies. Personnel expenses rose to € 1.6 million (€ 1.0 million). This increase can in particular be attributed to greater expenses for variable compensation due to the successful business development. Other operating expenses decreased to € 2.0 million (€ 2.1 million). EBIT therefore reached € –1.7 million (€ –1.3 million). EBT was € –1.8 million (€ –1.4 million).

EMPLOYEES AND SELF-EMPLOYED CLIENT CONSULTANTS

As MLP is a knowledge-based service provider, qualified and motivated employees and consultants represent the most important foundation for sustainable company success. The focus is therefore on continuous further development of personnel work, qualifications and further training, as well as recruiting new consultants.

The number of employees rose to 1,745 (1,715) in the reporting period. The increase can essentially be attributed to employees returning from parental leave, as well as new recruitments.

Development of number of employees by segment (excluding MLP consultants)

Segment March 31, 2019 March 31, 2018
Financial consulting1 1,057 1,056
Banking 184 175
FERI 235 222
DOMCURA 263 256
Holding 6 6
Total 1,745 1,715

1 Including TPC, ZSH and MLP Dialog

As of March 31, 2019, 1,910 self-employed client consultants worked for MLP. This corresponds to 20 more consultants than in the previous year. The decline relative to the end of 2018 (1,928) is essentially the result of the familiar seasonal effects in the first quarter.

FORECAST

Developments in Q1 2019 were within the scope of our expectations. Following on from the first three months of the year, we remain committed to the statements made in the forecast section of the 2018 Annual Report. You can find details on our forecast in the Annual Report of the MLP Group at www.mlp-annual-report.com.

Income statement and statement of comprehensive income

Income statement for the period from January 1 to March 31, 2019

All figures in €'000 1st quarter 2019 1st quarter 2018
Revenue 174,011 164,741
Other Revenue 3,801 3,200
Total revenue 177,812 167,941
Commission expenses –94,081 –87,630
Interest expenses –133 –161
Valuation result/Loan loss provisions –727 510
Personnel expenses –33,631 –31,355
Depreciation and impairments –6,301 –3,786
Other operating expenses –30,934 –32,816
Earnings from investments accounted for using the equity method 515 332
Earnings before interest and tax (EBIT) 12,522 13,034
Other interest and similar income 148 53
Other interest and similar expenses –429 –458
Valuation result not relating to operating activities 36 –6
Finance cost –246 –411
Earnings before tax (EBT) 12,276 12,624
Income taxes –3,132 –3,309
Net profit 9,144 9,314
Of which attributable to
owners of the parent company 9,144 9,314
Earnings per share in €*
basic/diluted 0.08 0.09

*Basis of calculation: average number of ordinary shares outstanding at March 31, 2019: 109,172,063.

Statement of comprehensive income for the period from January 1 to March 31, 2019

All figures in €'000 1st quarter 2019 1st quarter 2018
Net profit 9,144 9,314
Gains/losses due to the revaluation of defined benefit obligations –5,257
Deferred taxes on non-reclassifiable gains/losses 1,546 50
Non reclassifiable gains/losses –3,710 50
Other comprehensive income –3.710 50
Total comprehensive income 5,433 9,364
Of which attributable to
owners of the parent company 5,433 9,364

Statement of financial position

Assets as of March 31, 2019

All figures in €'000 March 31, 2019 Dec. 31, 2018
Intangible assets 154,042 155,892
Property, plant and equipment 132,451 78,270
Investments accounted for using the equity method 4,701 4,186
Deferred tax assets 6,397 5,368
Receivables from clients in the banking business 756,661 761,027
Receivables from banks in the banking business 701,237 694,210
Financial assets 165,534 165,279
Tax refund claims 14,095 12,758
Other receivables and assets 145,963 158,123
Cash and cash equivalents 498,809 385,926
Total 2,579.890 2,421,038

Liabilities and shareholders' equity as of March 31, 2019

All figures in €'000 March 31, 2019 Dec. 31, 2018
Shareholders' equity 429,193 424,826
Provisions 104,720 94,485
Deferred tax liabilities 9,450 10,245
Liabilities due to clients in the banking business 1,702,364 1,638,892
Liabilities due to banks in the banking business 87,530 81,625
Tax liabilities 6,045 5,197
Other liabilities 240,588 165,768
Total 2,579,890 2,421,038

Condensed statement of cash flow

Condensed statement of cash flow for the period from January 1 to March 31, 2019

All figures in €'000 1st quarter 2019 1st quarter 2018
Cash and cash equivalents at the beginning of the period 385,926 301,013
Cashflow from operating activities 116,991 66,739
Cashflow from investing activities –1,340 –2,638
Cashflow from financing activities –2,768
Change in cash and cash equivalents 112,883 64,102
Cash and cash equivalents at the end of the period 498,809 365,115

Revenue

Revenue for the period from January 1 to March 31, 2019

All figures in €'000 1st quarter 2019 1st quarter 2018
Non-life insurance 59,885 56,204
Wealth management 50,243 47,493
Old-age provision 38,017 33,715
Health insurance 12,115 11,682
Loans and mortgages 5,123 5,221
Real estate property 3,306 4,886
Other commissions and fees 1,070 1,182
Total commission income 169,759 160,384
Interest income 4,252 4,357
Total 174,011 164,741

Statement of changes in equity

Statement of changes in equity for the period from January 1 to March 31, 2019

Equity attributable to MLP SE shareholders

All figures in €'000 Share capital Capital reserves Gains/losses
from changes in
the fair value of
available-for-sale
securities*
Revaluation gains/
losses related
to defined benefit
obligations after
taxes
Retained
earnings
Total
share-holders
equity
As of Jan. 1, 2018 109,335 148,754 959 –12,184 158,072 404,935
Effects from first-time adoption of
IFRS 9 and IFRS 15
–959 8,807 7,848
As of Jan. 1, 2018 109,335 148,754 –12,184 166,880 412,783
Net profit 9,314 9,314
Other comprehensive income 50 50
Total comprehensive income 50 9,314 9,364
As of March 31, 2018 109,335 148,754 –12,135 176,194 422,147
As of Jan. 1, 2019 109,167 149,227 –12,518 178,951 424,826
Treasury Stock –372 –1,260 –1,632
Share-based payment 565 565
Transactions with owners –372 565 –1,260 –1,067
Net profit 9,144 9,144
Other comprehensive income –3,710 –3,710
Total comprehensive income –3,710 9,144 5,433
As of March 31, 2019 108,794 149,792 –16,228 186,835 429,193

*Reclassifiable gains/losses.

Reportable business segments

Information regarding reportable business segments

Financial consulting Banking
All figures in €'000 1st quarter 2019 1st quarter 2018 1st quarter 2019 1st quarter 2018
Revenue 84,202 80,728 18,101 18,066
Other revenue 5,562 5,674 997 796
Total revenue 89,764 86,402 19,097 18,862
Commission expenses –42,733 –40,082 –7,202 –7,394
Interest expenses –81 –161
Valuation result/Loan loss provisions –121 –179 –513 777
Personnel expenses –17,384 –16,612 –2,891 –2,583
Depreciation and impairments –4,798 –2,766 –32 –23
Other operating expenses –23,079 –24,147 –8,091 –8,650
Earnings from investments accounted for using the equity method 515 332
Segment earnings before interest and tax (EBIT) 2,165 2,951 287 828
Other interests and similar income 154 56 7 –2
Other interest and similar expenses –325 –365 –7 –10
Valuation result not relating to operating activities 10 –3
Finance cost –161 –312 0 –12
Earnings before tax (EBT)
Income taxes
2,004
2,639
287
816
Net profit
Total Consolidation Holding DOMCURA FERI
1st quarter 2018 1st quarter 2019 1st quarter 2018 1st quarter 2019 1st quarter 2018 1st quarter 2019 1st quarter 2018 1st quarter 2019 1st quarter 2018 1st quarter 2019
174,011
164,741
–4,064 –4,357 35,932 39,278 34,078 36,787
3,801
3,200
–6,295 –6,233 2,230 2,330 158 178 637 967
177,812
167,941
–10,360 –10,590 2,230 2,330 36,090 39,456 34,716 37,754
–94,081
–87,630
4,066 4,289 –23,201 –25,159 –21,020 –23,277
–133
–161
–52
–727
510
–127 –81 38 –12
–33,631
–31,355
–985 –1,597 –3,892 –4,048 –7,283 –7,711
–6,301
–3,786
–396 –413 –309 –506 –292 –552
–30,934
–32,816
6,275 6,194 –2,146 –2,020 –1,685 –1,689 –2,464 –2,250
515
332
12,522
13,034
–18 –158 –1,296 –1,700 6,874 7,974 3,695 3,953
148
53
–16 40 3 –22 6 –35 8 3
–429
–458
23 100 –98 –95 –1 –8 –7 –94
36
–6
–4 23 2 0
–246
–411
7 140 –98 –94 5 –41 1 –91
12,276
12,624
–11 –18 –1,395 –1,794 6,879 7,933 3,696 3,863
–3,132
–3,309
9,144
9,314

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