Financial Results 2017
Frankfurt, February 28, 2018
2017: Good performance and significantly strengthened equity base
- Targets achieved: Operating EBIT up by 33 percent to € 46.7 million.
- MLP benefited significantly in 2017 from the diversification and cost management activities of the last few years.
- Total revenue increased to € 628.2 million the highest level since outbreak of the financial crisis in 2008.
- Executive Board proposes a dividend of 20 cents representing an increase of 12 cents over the previous year.
- Successful further development of the Group structure: Equity base of the MLP Group significantly strengthened in 2017. Free equity capital increased by a total of € 76.3 million as at the end of the year.
Broader leeway for the Group
Increased free equity capital Realigned Group structure/banking services
Significantly more stable revenue basis established
Growth outside the old-age provision area
Decline in the old-age provision area more than compensated
Proportion of recurring revenue significantly increased
30 %
FY 2017: Total revenue reaches highest level since outbreak of the financial crisis
Total revenue FY
* Previous year's values adjusted
FY 2017: Growth across all consulting areas, excluding old-age provision
Revenue
In € million
|
2016 |
2017 |
in % |
Q4 2016 |
Q4 2017 |
in % |
| Old-age provision |
221.5 |
208.1 |
–6.0 |
94.3 |
86.1 |
–8.7 |
| Wealth management |
166.4 |
190.6 |
14.5 |
43.5 |
50.8 |
16.8 |
| Health insurance |
45.8 |
45.9 |
0.2 |
11.8 |
11.7 |
–0.8 |
| Non-life insurance |
105.6 |
109.9 |
4.0 |
20.0 |
19.1 |
–4.5 |
| Loans and mortgages* |
15.4 |
17.0 |
10.4 |
5.0 |
5.8 |
16.0 |
| Other commission and fees |
15.4 |
18.4 |
19.5 |
6.6 |
4.4 |
–33.3 |
| Interest income |
20.5 |
18.9 |
–7.8 |
4.9 |
4.5 |
–8.2 |
|
|
|
|
|
|
|
* Excluding MLP Hyp
Clients focusing on new guarantees and occupational pension provision
Assets under management increase to € 33.9 billion
Assets under management, MLP Group
Realigned Group structure: new segments
Previous
structure
(segments*) |
|
|
Current
structure
(segments*) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finanzdienst
leistungen |
FERI |
DOMCURA |
Financial
Consulting |
Banking |
FERI |
DOMCURA |
| Old-age provision |
x |
|
|
x |
|
|
|
| Wealth management |
x |
x |
|
|
x |
x |
|
| Non-life insurance |
x |
|
x |
x |
|
|
x |
| Health insurance |
x |
|
|
x |
|
|
|
| Loans and mortgages |
x |
|
|
x |
|
|
|
| Real estate brokerage |
x |
|
|
x |
|
|
|
|
|
|
|
|
|
|
|
*Further segment, but without active operations: Holding
Number of family clients around 530,000
Family clients
Client consultants
Operating EBIT increases significantly to € 46.7 million
Income statement
In € million
|
Q4 2016 |
Q4 2017 |
2016 |
2017 |
| Total revenue |
191.7 |
187.5 |
610.4 |
628.2 |
| Operating EBIT* |
19.3 |
25.3 |
35.1 |
46.7 |
| EBIT |
8.2 |
23.0 |
19.7 |
37.6 |
| Finance cost |
-0.4 |
-0.5 |
-0.9 |
-1.2 |
| EBT |
7.7 |
22.5 |
18.7 |
36.4 |
| Taxes |
-2.6 |
-5.8 |
-4.1 |
-8.6 |
| Net profit |
5.1 |
16.7 |
14.7 |
27.8 |
EPS in €
(diluted/basic) |
0.05 |
0.15 |
0.13 |
0.25 |
2017: One-off expenses of € 9.1 million (€ 2.3 million in Q4/2017) for further optimisation of the Group structure (separation of banking and brokerage activities). One-off expenses of € 15.4 million in the year before (Q4/2016: € 11.1 million).
*Before one-off expenses
Significant increase in equity
In € million
Core capital ratio at 20 percent
In € million
| Assets |
Dec. 31, 2016 |
Dec. 31, 2017 |
| Intangible assets |
168.4 |
161.8 |
| Financial assets |
162.3 |
158.5 |
| Receivables from clients in the banking business |
626.5 |
702.0 |
| Receivables from banks in the banking business |
591.0 |
634.2 |
| Other receivables and assets |
122.8 |
125.7 |
| Cash and cash equivalents |
184.8 |
301.0 |
Equity ratio: 18.7 %
Return on equity: 7.3 %
Core capital ratio: 20.0 %
Liabilities and shareholders' equity
| Shareholders' equity |
383.6 |
404.9 |
| Provisions |
91.2 |
88.7 |
| Liabilities due to clients in the banking business |
1,271.1 |
1,439.8 |
| Liabilities due to banks in the banking business |
37.7 |
61.4 |
| Other liabilities |
146.9 |
154.9 |
| Total |
1,944.1 |
2,169.5 |
Net liquidity of around € 215 million
As of December 31, 2017
Executive Board proposes a dividend of 20 cents per share
Dividend per share
Strategic agenda 2018
Strategic focus
Implementation
- Strengthening of the university segment in the private client business: through focus on recruiting young consultants and acquiring clients
- Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business
- Accelerated implementation of digitalisation strategy: in particular extension of digital information and service offers
1 2 3
The MLP group continues to target acquisitions and is open for opportunities in three areas:
- In MLP's private client business
- In the DOMCURA market segment
- In the FERI market segment
Organic growth Inorganic growth Continued cost management
- Structural reduction of the cost base continued in 2017 – ongoing efficiency management
- Simultaneous investment in future projects
Making MLP less susceptible to short-term market influences and building on profit level already achieved
Accelerated implementation of digitalisation strategy
Complementing face-to-face consulting
Strategic agenda 2018
Strategic focus
Implementation
- Strengthening of the university segment in the private client business: through focus on recruiting young consultants and acquiring clients
- Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business
- Accelerated implementation of digitalisation strategy: in particular extension of digital information and service offers
1 2 3
The MLP group continues to target acquisitions and is open for opportunities in three areas:
- In MLP's private client business
- In the DOMCURA market segment
- In the FERI market segment
Organic growth Inorganic growth Continued cost management
- Structural reduction of the cost base continued in 2017 – ongoing efficiency management
- Simultaneous investment in future projects
Making MLP less susceptible to short-term market influences and building on profit level already achieved
Further broadening of revenue basis
Revenue distribution FY 2017/impetus for 2018
Strengthening of the university segment displaying initial successes
Strategic agenda 2018
Strategic focus
Implementation
- Strengthening of the university segment in the private client business: through focus on recruiting young consultants and acquiring clients
- Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business
- Accelerated implementation of digitalisation strategy: in particular extension of digital information and service offers
1 2 3
The MLP group continues to target acquisitions and is open for opportunities in three areas:
- In MLP's private client business
- In the DOMCURA market segment
- In the FERI market segment
Organic growth Inorganic growth Continued cost management
- Structural reduction of the cost base continued in 2017 – ongoing efficiency management
- Simultaneous investment in future projects
Making MLP less susceptible to short-term market influences and building on profit level already achieved
Outlook for the financial year 2018
Qualitative assessment of revenue development
| Revenue |
2018 |
| Old-age provision |
+ |
| Wealth management |
0 |
| Health insurance |
0 |
| Non-life insurance |
+ |
| Loans and mortgages |
0 |
| Real estate brokerage |
0 |
very positive: ++, positive: +, neutral: 0, negative: -, very negative: --
MLP is anticipating EBIT in 2018 to remain at around the level of operating EBIT recorded in 2017 – EBIT is likely to increase significantly, as there are no special expenses scheduled for 2018
- Targets achieved in 2017 MLP is benefiting from the strategic further development of the last few years.
- Transformation of MLP to be continued in 2018. In focus: further digitalisation, further diversification of the revenue basis, as well as strengthening the university segment.
- Despite comprehensive investments for the future: Our goal is to confirm the earnings base achieved in 2017.
Financial Results 2017
Frankfurt, February 28, 2018