MLP SE

Investor Presentation • Mar 16, 2017

The MLP Group – The partner for all financial matters

March 2017

Management Roadshow

The MLP Group

• 1. MLP at a glance
• 1. Key Financials 2016
• 1. Strategy & Outlook

The MLP Group at a glance

MLP Group – An Overview

Clients		• Around 517,400 private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, solicitors, engineers and economists) • Around 19,200 corporate and institutional clients	*as of December 31, 2016
s a e ar s s e n si u b n ai M	Old-age provision	Brokered premium sum for new business totalled € Occupational pension provision accounted for around 13% of this figure.	Share of revenue '16 39%
	Wealth Management	€	31.5 billion in assets under management as at December 31, 2016 in business with mass affluent clients, HNWI and institutional investors.
	Non-life insurance	Business field expanded by acquisition of DOMCURA Group in 2015. More that € 350 million premium volume within the MLP Group.	19%
	Health insurance	Private health insurance, supplementary private health insurance, long-term care, occupational health insurance, statutory health insurance.	8%
Top Financials FY 2016		Total revenue: € 610.4 mil. Operating EBIT*: € 35.1 mil. EBIT: € 19.7 mil. Net profit: € 14.7 mil.	Equity Ratio: Core Capital Ratio: 14.2% Consultants:	19.7% 1,950	Dividend per share: Return on Equity: Employees:	€ 0.08 3.8% 1,768	*before one-off expenses
MLP Share		Shares outstanding: 109,334,686 Free Float: 49.81% (Definition on the German stock exchange) Average daily trading volume: 102.800 (Xetra, 12-month average as at end of February 2017)

Attractive dividend policy & stable shareholder structure

Dividend policy	Pay-out ratio: 50% - 70% of net profit Profit retention required for: - Acquisitions - Capital expenditure - Capital management (Basel III)		Return on dividend: *influenced by one-off expenses	4.0% 2010	11.8% 2011	6.4% 2012	3.1% 2013	4.6% 2014	3.3% 2015	1.9%* 2016
Shareholder structure	Dr. h. c. Manfred Lautenschläger HDI Barmenia Allianz SE Angelika Lautenschläger Freefloat (Def. Deutsche Börse) [FMR LLC: 4.72%, Internationale Kapitalanlagegesellschaft	23.22% 9.36% 5.49% 6.18% 5.94% 49.81%	mbH: 3,03%, Schroders PLC: 2.99%]	Freefloat			HDI Pensionskasse	Barmenia Allianz SE	Angelika Lautenschläger	Dr. h. c. Manfred Lautenschläger
Research coverage	Equinet/ESN Bankhaus Lampe Independent Research Hauck & Aufhäuser	Accumulate Hold Hold Buy		PT 5.50 PT 5.00 PT 5.30 PT 7.40

Market environment – Fundamental changes taking place

Trend

Client behaviour

• Fundamental scepticism on the part of clients towards the financial industry since the outbreak of the financial crisis
• Quick and inexpensive information possibilities for clients via the internet
• Distinct desire to make their own financial decisions

Demographics

• Rising life expectancy and low birth rate lead to a significantly ageing society
• Increasing pressure on state social welfare systems
• Number of people in work constantly falling

Regulation (e.g. IMD II, MiFID II, LVRG)

• Since 2004 and especially since 2008 intensive regulation
• In addition to impacting at the product level, regulation also particularly applies to the training of consultants, documentation and transparency

Effects

• Intense competition
• Quality of consulting services and differentiation
• from the competition continue to gain in significance
• Contract conclusion for simple products sometimes takes place without consultation
• Great need for private and occupational old-age provision as well as private health insurance
• Recruiting: Good labour market perspectives leads to a "war of talents" for welleducated/trained individuals
• Significant rise in administrative activities burdens productivity
• Increase in fixed costs for training, IT systems and administration
• Quality becoming an increasingly important aspect

Market environment remains difficult – Sector-specific key indicators

Persons holding comprehensive private health insurance

Source: Association of Private Health Insurers (PKV)

Source: German Insurance Association (GDV e.V.)

Significant increase in consolidation within the market due to Life Insurance Reform Act (LVRG)

Shrinking Number of insurance intermediaries in Germany

Effects of the Life Insurance Reform Act (LVRG)

• Quality of consultancy and portfolio is even more important
• Sale organisations with a high cancellation rate lose trail commissions
• Major challenges for pyramid sales organisations

Trend is ongoing and will strengthen – MLP to play an active role in consolidation process

MLP is a pioneer in terms of new guarantee products

Market product mix for newly brokered policies

MLP product mix for newly brokered policies

The MLP Group

• 1. MLP at a glance
• 1. Key Financials 2016
• 1. Strategy & Outlook

Strategic portfolio significantly broadened

	Occupational pension provision		Clear business model		Wealth management		Real estate		Expansion of non-life insurance
2004 2008	Foundation of Occupational Pension Provision division Acquisition of TPC		2005 Sale of own insurance subsidiaries		2006 MLP buys shares in FERI AG 2011 MLP acquires all shares in FERI as planned		2011 Start of real estate portfolio 2014 Expansion of real estate portfolio		2015 Acquisition of DOMCURA Group • Underwriting agency • Further strategically relevant business segment tapped • Significant potential with existing business
			Successful diversification beyond the old-age provision –		Constitution of commission income (in €			million)
€ million								Total 570.1
600 500	Total 472.4
400								348.6	Significant increase
300				230.9	237.8	247.1	298.6		in 2016
200	161.3	183.9	205.5						CAGR +12.7% p.a.
100									since 2009
0	2009	2010	2011	2012	2013	2014	2015	2016
	Wealth management		Non-life insurance	Health insurance	Loans and mortgages		Other commission and fees (incl. real estate)		Total commission and fees

Assets under management increase to EUR 31.5 billion – Old age provision bottomed out

Assets under management Old-age provision [in € billion] [in € million] 0 500 1000 1500 2000 2500 3000 3500 4000 2015 2016 9M 2,076 9M 1,459 1,613 3,689 3,473 10.8 20.2 31.5 0 5 10 15 20 25 30 35 31/12/2006 31/12/2011 31/12/2016 0 10 20 30 40 50 60 70 80 90 100 94.3 45.7 45.3 36.2 87.8 41.1 44.8 42.0 Q1 Q2 Q3 Q4 2015 2016 Revenue rising for 3 consecutive quarters Brokered premium sum [in € million]

Page 12 March 2017 Management Roadshow Frankfurt

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	10.5
Loans and mortgages*	16.2	15.4	-4.7	5.1	5.0	–0.9
Other commission and fees	15.6	15.4	-1.1	5.1	6.6	28.2
Interest income	21.4	20.5	-4.2	5.3	4.9	–6.7

* Excluding MLP Hyp

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
EBIT	23.3	8.2	30.7	19.7
Finance cost	-0.4	-0.4	-2.8	-0.9
EBT	22.9	7.7	28.0	18.7
Taxes	-6.8	-2.6	-8.2	-4.1
Net profit	16.1	5.1	19.8	14.7
EPS in euros (diluted/basic)	0.15	0.05	0.18	0.13

2016:

• Efficiency programme: one-off expenses of € 15.4 million (€ 11.1 million in Q4/2016)

*before one-off expenses

Balance sheet – Core capital ratio at 14.2 %

Assets	Dec. 31, 2015	Dec. 31, 2016
Intangible assets	174.5	168.4
Financial assets	147.9	162.3
Receivables from clients in the banking business	542.7	626.5
Receivables from banks in the banking business	600.3	591.0
Other receivables and assets	112.5	122.8
Cash and cash equivalents	77.5	184.8

Equity ratio: 19.7 %

Return on equity: 3.8 %

Core capital ratio: 14.2 %

Liabilities and shareholders' equity

Shareholders' equity	385.8	383.6
Provisions	86.5	91.2
Liabilities due to clients in the banking business	1,102.6	1,271.1
Liabilities due to banks in the banking business	23.1	37.7
Other liabilities	140.2	146.9
Total	1,752.7	1,944.1

Net liquidity of around € 184 million

Page 16

The MLP Group

• 1. MLP at a glance
• 1. Key Financials 2016
• 1. Strategy & Outlook

Strategic agenda 2017

Strategic focus	Implementation
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 consultants
	• Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business • Continued implementation of digitalisation strategy: in particular extension of digital information and service offers
2 Inorganic	• MLP Group open to acquisitions in two areas:
growth	• In the market segment of FERI and DOMCURA • In MLP's private client business
3
Continued Cost management	• Structural reduction of cost base initiated in 2016 – ongoing efficiency management programme

Making MLP more independent of short-term market influences and returning it to a significantly increased profit level

Banking activities with supervisory or regulatory relevance to be bundled at one company in the future

Current structure Intended structure as of 2018

Current scope of services for clients will be maintained Better opportunities for strategic collaborations

Scope for action significantly extended through new group structure

Effects on equity

Further strengthening of the business model Scope for investments and acquisitions

Private client business – strengthening the university segment

Number of academics in active employment

million

Sources: Germany's Federal Employment Agency (2016) and Vogler-Ludwig et al. (2016)

• Increasing potential for MLP in the university segment
• Measures of the last few years are having an impact, particularly the introduction of a training allowance for new consultants
• Sharper focus, among other things by introducing a dedicated divisional board member for the university segment
• Objectives: To further increase presence and gain new clients and consultants more quickly

Sharper focus on university segment

MLP private client business

A = Focus: Winning new clients B = Focus: Serving existing clients

Online policy sales successfully launched for basic products – New client portal enters its first extension phase in April

Even more balanced revenue basis in the medium term

Development of revenue distribution

Cost management bears fruit

Administrative expenses

Outlook: Operating EBIT of at least € 45 million anticipated

Forecast development of administrative expenses

Qualitative assessment of the development of sales revenues

Revenue from old-age provision	0
Revenue from health insurance	+
Revenue from wealth management	0
Revenue from non-life insurance	+

very positive: ++, positive: +, neutral: 0, negative: -, very negative: --

MLP anticipates EBIT of at least € 36 million in 2017 (operating EBIT: at least € 45 million)

• 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.
• Despite the one-off expenses associated with the change of the group structure, MLP anticipates EBIT of at least € 36 million for 2017.

Appendix

MLP serves 517,400 private and 19,200 corporate clients

Client base: family clients / corporate and institutional clients

Private clients	• Combined individuals: Partner relationship or parents-child unit and assigned to the same client	Number of private clients (families)
(families)		510,200		31/12/2015
	consultant • System applies for MLP and the subsidiaries FERI and ZSH	514,600		30/09/2016
		517,400		31/12/2016
Corporate and	• Corporate clients in occupational pension provision • Institutional clients at FERI	Number of corporate and institutional clients
institutional clients		18,200	31/12/2015
	• Sales partners at DOMCURA • Freelancers as employers	18,600	30/09/2016
		19,200	31/12/2016

DOMCURA: Underwriting agency selects the appropriate insurer from the marketplace

Positive effects on MLP through DOMCURA

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.

Further development of the DOMCURA business with other market actors (e. g. brokers)

Expansion of the corporate client business through DOMCURA commercial and industrial brokers

New kinds of support through expansion of Customer Service Centre (CSC)