Quarterly Report • May 13, 2015
Quarterly Report
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Interim Group Report for the first quarter 2015
| All figures in € million | 1st quarter 2015 |
1st quarter 20141 |
Change in % |
|---|---|---|---|
| MLP Group | |||
| Total revenue | 130.9 | 118.8 | 10.2% |
| Revenue | 125.9 | 112.8 | 11.6% |
| Other revenue | 5.0 | 6.0 | –16.7% |
| Earnings before interest and tax (EBIT) | 7.0 | 3.4 | >100% |
| EBIT margin (%) | 5.3% | 2.9% | – |
| Net profit | 5.2 | 2.7 | 92.6% |
| Earnings per share (diluted/undiluted) in € | 0.05 | 0.02 | >100% |
| Cashflow from operating activities | 35.4 | 28.7 | 23.3% |
| Capital expenditure | 2.9 | 5.2 | –44.2% |
| Shareholders' equity | 378.6 | 376.82 | 0.5% |
| Equity ratio (%) | 23.3% | 23.2%2 | – |
| Balance sheet total | 1,627.1 | 1,624.72 | 0.1% |
| Clients | 849,300 | 847,6002 | 0.2% |
| Consultants | 1,931 | 1,9522 | –1.1% |
| Branch offices | 161 | 1622 | –0.6% |
| Employees | 1,545 | 1,557 | –0.8% |
| Arranged new business | |||
| Old-age provisions (premium sum) | 570.0 | 630.0 | –9.5% |
| Loans mortgages | 427.3 | 349.6 | 22.2% |
| Assets under management in € billion | 29.0 | 27.52 | 5.5% |
1 Previous year's values adjusted. The adjustments are disclosed under Note 3.
2 As of December 31, 2014.
This Group interim report has been compiled in accordance with the requirements of the German Accounting Standards No. 16 (DRS 16) "Interim Reporting" and constitutes a continuation of the consolidated financial statements 2o14. In this regard it presents significant events and business transactions of the first quarter 2o15 and updates forecast-oriented information contained in the last joint management report. The Annual Report is available on our website at www.mlp-ag.com. In the presentation of the results of operations, financial position and net assets of the MLP Group in accordance with the International Financial Reporting Standards (IFRS), the corresponding figures from the previous year are shown in brackets.
The information contained in this Group interim report has neither been audited by an auditor nor subjected to an audit review.
The MLP Group is the partner for all financial matters – for private clients, companies and institutional investors. With our three brands, each of which enjoys a leading position in their respective markets, we offer a broad range of services:
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. For the implementation, 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. Just under 2,ooo client consultants and 1,5oo employees work at MLP.
Equity markets made an impressive start to 2o15. Following a few weaker days at the very beginning of the year, the German bench mark index DAX climbed by over 9% in January and stood at 1o,81o points by the end of the month. This rise was driven to a large extent by the announcement by Mario Draghi, the President of the European Central Bank, on 22nd January concerning the "quantitative easing" programme. Under these measures, a total of € 1,14o billion of liquidity will flow into the Eurozone from March 2o15 to September 2o16 – equating to € 6o billion per month. Consequently, this led to almost daily new highs and the consumption climate improved significantly. The expansionary monetary policy of the central banks also remained a dominant factor with respect to stock market price development during the course of the quarter and helped the DAX to reach a new high of 12,219 points. However, comments by the US Federal Reserve, heralding its strategy of a possible gradual rise in interest rates dampened further progress at the end of the quarter. At the end of March, the DAX closed at 11,966 points – a level that was only slightly below the all-time high to that date. Overall, the index rose by 22.o3% in the first quarter, thus setting a new record.
In the first quarter 2o15 the MLP share moved within a narrow corridor, ranging from € 3.48 to € 3.88. After a positive start to the year, persistent selling pressure pushed the share price at the beginning of February down to its previous low at € 3.5o. This fall was followed by a recovery phase which took the share price back to the level at the beginning of the year of € 3.7o. After a minor correction following the publication of the results for the financial year 2o14, the MLP share continued its recovery. By the end of the first quarter the share price rose to its interim year-high of € 3.88. The rise in the share price was accompanied by an increase in trading volume. Based on an average of the previous 12 months, the volume rose to 59,5oo shares per day at the end of March (Dec. 31, 2o14: 43,8oo).
Further information about the MLP share is available on our Investor Relations page on the internet at www.mlp-ag.com in the section "MLP share".
| 1st quarter 2015 |
1st quarter 2014 |
|
|---|---|---|
| Shares outstanding (end of reporting period) | 107,877,738 | 107,877,738 |
| Share price at the beginning of the quarter | € 3.71 | € 5.26 |
| Share price high | € 3.88 | € 6.06 |
| Share price low | € 3.48 | € 4.57 |
| Share price at the end of the quarter | € 3.88 | € 4.82 |
| Dividend for the previous year | € 0.17* | € 0.16 |
| Market capitalisation (end of reporting period) | € 418,565,623.40 | € 519,970,697.16 |
* Subject to the approval of the Annual General Meeting on June 18, 2015.
The Executive and Supervisory boards are proposing a dividend of € o.17 per share, for approval at the Annual General Meeting (AGM) on June 18, 2o15. This equates to a pay-out ratio of 63% of net profit.
The MLP Annual General Meeting 2o15 will be held on June 18, 2o15 at the Rosengarten in Mannheim. Information about all aspects of the Annual General Meeting is provided on our Investor Relations page at www.mlp-agm.com.
The values disclosed in the following management report have been rounded to one decimal place. As a result, differences to reported total amounts may arise when adding up the individual values.
The previous year's values of the consolidated income statement have been adapted and are disclosed accordingly in the following tables. Information on this is provided in Note 3.
Compared to the fundamental principles of the Group as described in the MLP Group's Annual Report 2o14, no changes occurred during the first quarter 2o15. Detailed information concerning "Business model", "Control system" and "Research and development" can be found on pages 26 to 31 of the MLP Group's Annual Report 2o14.
During the period under review the service contracts of the FERI AG Executive Board members Dr. Matthias Klöpper (Finance) and Dr. Heinz-Werner Rapp (Chief Investment Officer) were extended.
There were no changes to the scope of consolidation during the period under review.
The macroeconomic and industry-specific framework conditions did not significantly differ from the outline provided in the MLP Group's Annual Report 2o14 (pages 32 to 42).
Compared to the Euro zone, the German economy continued to exhibit resilient growth in the first quarter. According to calculations by FERI EuroRating Services AG, the gross national product (GNP) grew by o.6% compared to the same period in the previous year. Private consumption is once again proving to be one of the pillars of this growth, supported by a strong rise in real wages as well as the favourable labour market situation. Figures released by the Federal Statistics Office show that the unemployment rate in March fell compared to the previous month from 6.9% to 6.8% and was thus also below the level of the previous year (7.1%).
The persistent low interest phase, negative reports about life insurance companies and their products as well as the hesitancy on the part of many consumers with respect to the conclusion of long-term contracts continue to burden the market environment in old-age provision. The industry situation within this consulting field has not changed compared to the statements made on pages 33 to 36 of the MLP Group's Annual Report 2o14.
Following a pick-up in business towards the end of the last financial year the industry is adopting a more pessimistic stance with respect to the current financial year. According to the rating agency Assekurata, the business expectations of life insurance companies for 2o15 are significantly below the previous year.
A survey conducted by the YouGov institute on behalf of MLP reveals the continuingly high need for advisory services in old-age provision. The survey revealed that around 4o% of citizens in Germany have no specific idea of the level of benefit they will receive from their statutory pension, and a further 3o% only have a "rough idea" (see diagram).
The market environment for private health insurance remains difficult, especially in the area of full private health insurance. According to figures released by the Association of German Private Healthcare Insurers in March 2o15, the number of citizens with full private health insurance in 2o14 fell significantly again. Following a decrease of around 66,ooo insurees in 2o13, the reduction in 2o14 amounted to around 56,ooo and thus represented a similar magnitude of decline.
The industry situation within this consulting field has not changed compared to the statements provided on pages 36 to 38 of the MLP Group's Annual Report 2o14.
According to figures released by the German Association for Investment and Asset management (BVI), the volume of managed assets in the overall market at the end of February 2o15 rose to € 2,56o billion (Dec. 31, 2o14: € 2,382 billion). Institutional business continues to play an important part in this growth. Increases were also recorded in mutual funds. The data issued by the BVI shows the beginnings of a rethink in investment decision making. Following net outflows last year, equity funds achieved net inflows at the start of 2o15 and rank in second position in the statistics behind mixed funds.
Overall there were no fundamental changes in the industry situation which is outlined on pages 38 and 39 of the MLP Group's Annual Report 2o14.
The competitive conditions and the regulatory environment during the reporting period did not differ significantly from the information provided in the MLP Group's Annual Report 2o14 (pages 4o to 42).
On January 1, 2o15 important changes came into force within the framework of the Life Insurance Reform Act (LVRG), parts of which will also have lasting effects on the competitive situation in the overall market: the reduction of the guaranteed interest rate from 1.75% to 1.25% will contribute to a situation whereby the current hesitancy by citizens to commit to the conclusion of long-term old-age provision contracts could also continue in the future. The reduction in the maximum zillmerisation rate from 4% to 2.5% will lead to increased margin pressure – particularly in those sections of the market that adopt a significantly lower quality-oriented approach than MLP.
In the past, MLP already implemented many of the requirements now stipulated in the new legislation at an early stage. We consider this to provide us with a clear competitive advantage over other market members.
In the first quarter, the MLP Group maintained the positive trend of the previous year. Total revenue in Q1 2o15 was above the previous year's level. Despite the continuingly difficult market conditions we achieved growth in all consulting fields.
Due to the seasonality of our business performance, the first quarter only accounts for a minor portion of the full-year result. Major portions of the overall result are traditionally achieved in the second half-year – and especially in the final quarter.
There were no significant changes to our corporate structure during the period under review.
During the period under review MLP welcomed 5,8oo new clients (6,ooo). The total number of clients climbed to 849,3oo (Dec. 31, 2o14: 847,6oo).
In the period from January to March 2o15, total revenue of the MLP Group rose by 1o.2% to € 13o.9 million (€ 118.8 million). Revenue from commissions and fees accounted for the largest portion of this figure and amounted to € 12o.3 million (€ 1o7.1 million). Interest income totalled € 5.6 million (€ 5.8 million) and thus remained around the level of the previous year. Other revenue decreased from € 6.o million to € 5.o million. The higher figure achieved in the previous year was partly due to the positive effect on MLP of a court ruling with respect to the negative declaratory judgement against some of the former FERI shareholders.
The breakdown by consulting areas shows further very positive development in wealth management. In addition to new business, higher performance fees for the performance in the client portfolios at FERI significantly contributed to the revenue gain. Overall, revenue in this consulting field rose to € 4o.7 million (€ 32.6 million). At the end of the period under review, the volume of assets managed by the MLP Group climbed to € 29.o billion (Dec. 31, 2o14: € 27.5 billion).
Revenue in old-age provision amounted to € 42.o million (€ 4o.1 million) and thus exceeded the level of the previous year. This increase was also partially attributable to a special item. The premium sum for new business brokered by MLP fell slightly from € 63o million to € 57o million. In the first quarter, occupational provision accounted for 16% of this figure, compared to 15% in the previous year. In health insurance, revenue totalled € 11.8 million (€ 11.4 million) and was thus slightly above the level of the previous year.
Non-life insurance also recorded renewed growth, with revenue rising from € 18.8 million to € 2o.1 million. Revenue from loans and mortgages totalled € 3.2 million (€ 2.9 million) which was also above the previous year. Additional earnings from the joint venture company MLP Hyp amounted to € o.4 million (€ o.2 million). Real estate brokerage is shown under other commissions and fees which rose from € 1.3 million to € 2.5 million.
The revenue split illustrates the fact that MLP's business is now based on several reliable pillars of revenue. At 34%, 17% and 1o%, wealth management, non-life insurance and health insurance all make a significant contribution towards revenue from commissions and fees, thus also enhancing the stability of revenue development.
Commission expenses primarily contain performance-linked commission payments to our client consultants. In addition, this item also includes commission expenses in the FERI segment which particularly result from the activities in the fund administration domain. Variable expenses incurred in this business area include, for example, payment to the deposit bank and for fund sales. Commission expenses in the first quarter were significantly influenced by higher revenue from commission and fees and increased to € 58.4 million (€ 51.2million). Interest expenses fell to € o.4 million (€ o.9 million). Cost of sales thus increased to € 58.8 million (€ 52.o million).
Administration expenses (defined as the sum of personnel costs, depreciation and amortisation as well as other operating expenses) rose slightly to € 65.4 million (€ 63.5 million). Here, personnel costs totalled € 27.3 million (€ 27.8 million) and thus remained slightly below the level of the previous year. Depreciation and amortisation increased to € 4.9 million (€ 3.3 million) which was primarily attributable to one-off higher depreciation on intangible assets. Other operating expenses amounted to € 33.2 million (€ 32.4 million) and thus remained largely unchanged.
Supported by higher revenue, earnings before interest and tax (EBIT) in the first quarter rose from € 3.4 million to € 7.o million.
The finance cost of the MLP Group decreased slightly to € –o.2 million (€ o.o million). The tax ratio stood at 23.74%. Group net profit thus totalled € 5.2 million (€ 2.7 million). The diluted and basic earnings per share amounted to € o.o5 (€ o.o2).
| All figures in € million | Q1 2015 | Q1 2014 | Change in % |
|---|---|---|---|
| Total revenue | 130.9 | 118.8 | 10.2% |
| Gross profit1 | 72.1 | 66.7 | 8.1% |
| Gross profit margin (%) | 55.1% | 56.1% | –1.8% |
| EBIT | 7.0 | 3.4 | >100% |
| EBIT margin (%) | 5.3% | 2.9% | 82.8% |
| Finance Cost | –0.2 | 0.0 | >–100% |
| EBT | 6.9 | 3.4 | >100% |
| EBT margin (%) | 5.3% | 2.9% | 82.8% |
| Income taxes | –1.6 | –0.7 | >100% |
| Net profit | 5.2 | 2.7 | 92.6% |
| Net margin (%) | 4.0% | 2.3% | 73.9% |
1 Definition: Gross profit results from total revenue less commission expenses and interest expenses.
Related party disclosures are contained in Note 18.
Detailed information concerning the aims of financial management is contained on page 49 of the MLP Group's Annual Report 2o14.
The MLP business model is relatively low capital intensive and generates high cash flows. However, increased capital has been budgeted for the next few years in order to meet the revised definition of equity and the stricter requirements of Basel III.
We are currently 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 to clients and banks from the banking business also represent further refinancing funds, which are also generally available to us in the long term.
At March 31, 2o15 liabilities towards clients and banks from the banking business which totalled € 1,o42.5 million (December 31, 2o14: € 1,o25.1 million) were offset on the assets side of the balance sheet by receivables from clients and financial institutions from the banking business amounting to € 1,o41.5 million (December 31, 2o14: € 1,o54.9 million).
No capital measures were undertaken during the period under review.
Cash flow from operating activities increased to € 35.4 million compared to € 28.7 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 € –37.2 million to € –12.o million. In the reporting period, fewer new investments in term deposits were made than in the same period of the previous year.
| All figures in € million | 1st quarter 2015 |
1st quarter 2014 |
|---|---|---|
| Cash and cash equivalents at the beginning of period | 72.1 | 61.4 |
| Cashflow from operating activities | 35.4 | 28.7 |
| Cashflow from investing activities | –12.0 | –37.2 |
| Cashflow from financing activities | – | – |
| Change in cash and cash equivalents | 23.4 | –8.5 |
| Cash and cash equivalents at the end of period | 95.5 | 52.9 |
At the end of the first quarter 2o15, the MLP Group had cash and cash equivalents of around € 161 million. The liquidity situation therefore remains good. There are sufficient liquidity reserves available to the MLP Group. In addition to the liquid funds, free lines of credit are also in place.
At the end of March the investment volume of the MLP Group stood at € 2.9 million, compared to € 5.2 million in the previous year. The vast majority of these investment measures were undertaken in the financial services segment. Here, the investments were primarily made in IT. All investments were financed from cash flow.
At the balance sheet reference date on March 31, 2o15 the balance sheet total of the MLP Group amounted to € 1,627.1 million (Dec. 31, 2o14: € 1,624.7 million) and thus remained almost unchanged compared to December 31, 2o14. On the assets side of the balance sheet there were changes primarily to the following items: at the balance sheet reference date, financial assets increased to € 175.9 million (Dec. 31, 2o14: € 145.3 million) This figure was significantly influenced by the investment of the money from the profit transfer from MLP Finanzdienstleistungen AG and FERI AG. Deferred tax assets rose to € 8.8 million (€ 6.7 million). This increase was due to the scheduled adjustment of the altered differences in the pension accruals between valuation in accordance with IFRS and the tax balance sheet. Other receivables and other assets fell from € 117.7 million to € 98.4 million. This item essentially comprises commission receivables from insurance companies for whom we have brokered insurance policies. Due to the traditionally strong year-end business, these rise significantly at the end of the year and then reduce again during the course of the following financial year. Receivables from clients from the banking business as well as receivables from financial institutions from the banking business also remained stable and amounted to € 495.3 million (€ 495.6 million) and € 546.2 million (€ 559.3 million) respectively.
| All figures in € million | March 31, 2015 |
Dec. 31, 2014 |
Change in % |
|---|---|---|---|
| Intangible assets | 154.0 | 156.2 | –1.4% |
| Property, plant and equipment | 65.8 | 66.0 | –0.3% |
| Investment Property | 7.2 | 7.3 | –1.4% |
| Investments accounted for using the equity method | 3.1 | 2.8 | 10.7% |
| Deferred tax assets | 8.8 | 6.7 | 31.3% |
| Receivables from clients in the banking business | 495.3 | 495.6 | –0.1% |
| Receivables from banks in the banking business | 546.2 | 559.3 | –2.3% |
| Financial assets | 175.9 | 145.3 | 21.1% |
| Tax refund claims | 19.8 | 18.7 | 5.9% |
| Other receivables and other assets | 98.4 | 117.7 | –16.4% |
| Cash and cash equivalents | 52.2 | 49.1 | 6.9% |
| Total | 1,627.1 | 1,624.7 | 0.1% |
At the reference date on March 31, 2o15 the equity capital of the MLP Group amounted to € 378.6 million (Dec. 31, 2o14: € 376.8 million) and thus remained at the level of the previous year. At the reference date, the balance sheet equity ratio stood at 23.3% (Dec. 31, 2o14: 23.2%).
Provisions increased from € 92.o million to € 1o1.4 million in the light of the usual allocations to the provisions for client support commissions and higher pension provisions. Liabilities due to clients from the banking business remained stable at € 1,o22.7 million (Dec. 31, 2o14: € 1,oo7.7 million). Liabilities due to financial institutions from the banking business rose to € 19.8 million (€ 17.4 million). Other liabilities fell to € 91.3 million (Dec. 31, 2o14: € 117.8 million). This was partially attributable to lower commission claims by our consultants. These rise sharply at the balance sheet reference date of December 31 as a result of our traditionally strong year-end business and then fall again in the following quarters.
| All figures in € million | March 31, 2015 |
Dec. 31, 2014 |
Change in % |
|---|---|---|---|
| Shareholders' equity | 378.6 | 376.8 | 0.5% |
| Provisions | 101.4 | 92.0 | 10.2% |
| Deferred tax liabilities | 7.3 | 7.4 | –1.4% |
| Liabilities due to clients in the banking business | 1,022.7 | 1,007.7 | 1.5% |
| Liabilities due to banks in the banking business | 19.8 | 17.4 | 13.8% |
| Tax liabilities | 6.0 | 5.5 | 9.1% |
| Other liabilities | 91.3 | 117.8 | –22.5% |
| Total | 1,627.1 | 1,624.7 | 0.1% |
Following conclusion of the first quarter 2o15 we keep to the statements made in the forecast provided on pages 89 to 92 of the Annual Report 2o14.
Accordingly, for the financial year 2o15 MLP expects stable development in old-age provision as well as slight growth in both health insurance and wealth management.
In the first quarter 2o15 revenue development in old-age provision and in health insurance was stable or rose slightly compared to the previous year. Wealth management recorded significant revenue growth compared to the previous year.
Administration costs developed in line with our budget plan. Earnings development was thus within the framework of our expectations.
The MLP Group structures its business into the following operating segments:
A detailed description of the individual segments is contained on pages 53 et seq. of the MLP Group's Annual Report 2o14.
In the first quarter 2o15 total revenue in the financial services segment rose from € 93.4 million to € 1oo.5 million. Sales revenue increased to € 96.3 million (€ 89.5 million). Other revenue amounted to € 4.1 million (€ 3.9 million) and thus remained at the level of the previous year.
Commission expenses rose primarily on account of higher sales revenue and increased to € 41.5 million (€ 37.7 million). Interest expenses decreased to € o.4 million (€ o.9 million) due to the continued fall in interest rates. Personnel expenses remained almost unchanged at € 19.3 million (€ 19.o million). Depreciation and amortisation increased from € 2.2 million to € 3.9 million due primarily to a one-off higher depreciation. Other operating expenses amounted to € 3o.8 million (€ 29.9 million) and were thus slightly above the level of the previous year.
Earnings before interest and tax (EBIT) rose to € 4.8 million (€ 3.8 million). The finance cost totalled € –o.1 million (€ o.o million). Earnings before tax (EBT) thus amounted to € 4.7 million compared to € 3.8 million in the previous year.
In the period under review, total revenue in the FERI segment rose to € 31.4 million (€ 25.o million). In addition to new business, higher performance fees for the performance in client portfolios also contributed significantly to this development. Consequently, commission expenses increased to € 17.6 million (€ 14.1 million). Personnel expenses amounted to € 7.o million (€ 6.2 million) due to the significantly higher earnings and the associated variable personnel expenses. EBIT climbed to € 3.6 million (€ 1.6 million) and thus more than doubled. EBT also increased significantly, rising to € 3.6 million (€ 1.5 million).
Total revenue in the Holding segment amounted to € 2.7 million and thus remained significantly below the level of the previous year. The higher revenue in the previous year was due to the positive effect on MLP resulting from the negative declaratory judgement against several former FERI shareholders. Following a one-off exceptional cost incurred in the previous year, personnel expenses reduced to € 1.o million (€ 2.6 million). Other operating expenses remained at the previous year's level of € 2.7 million (€ 2.7 million). EBIT thus totalled € –1.5 million, compared to € –1.8 million in the previous year. EBT rose to € –1.5 million (€ –1.9 million).
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.
In the period under review the number of employees in the MLP Group fell slightly. At the reporting reference date on March 31, 2o15, MLP employed 1,545 people – 12 less than in the same period of the previous year. This reduction was mainly due to a lower number of marginal part-time staff which fell from 148 to 135.
| Segment | March 31, 2015 | March 31, 2014 |
|---|---|---|
| Financial services | 1,304 | 1,318 |
| FERI | 234 | 231 |
| Holding | 7 | 8 |
| Total | 1,545 | 1,557 |
Despite the typical seasonal reduction, the number of consultants fell only slightly in the first three months of the year and stood at 1,931 (Dec. 31, 2o14: 1,952). The turnover rate of 9.9% remains below our target of maximum 12% (+/– 2%). The number of consultant applications also developed favourably, rising by over 25% compared to the same period in the previous year.
Within the framework of our launched recruiting offensive we still aim to increase the number of consultants by the end of 2o15 to above the level recorded on December 31, 2o14.
At March 31 MLP operated 161 offices (Dec. 31, 2o14: 162) and plans to open further offices in the university segment.
There were no appreciable events after the balance sheet date affecting the MLP Group's net assets, financial position or results of operations.
MLP's Group-wide early risk detection and monitoring system is used as the basis for a Groupwide active risk management. This system ensures appropriate identification, assessment, controlling, monitoring and communication of the major risks. The aim of the MLP Group's integrated opportunity management system is the systematic and early identification of opportunities and corresponding assessment.
There were no significant changes to the risk and opportunity situation of the MLP Group during the period under review. There were no exceptional burdens within the framework of our counterparty default risks, market price risks, liquidity risks and operational or other risks in the first quarter 2o15. The MLP Group has adequate liquidity. At the balance sheet reference date on March 31, 2o15, our core capital ratio slightly increased to 14.3% as planned, based on the part retention of profit. It therefore still remained above the 8% level prescribed by the supervisory body. At the present time, no existence-threatening risks to the MLP Group have been identified.
A detailed presentation of our corporate risks and opportunities as well as a detailed description of our risk and opportunity management are contained in our risk and opportunity report on pages 62 to 8o of the MLP Group's Annual Report 2o14.
In the period under review there were no significant changes in our expectations of overall future economic development. A detailed description of these expectations can be found in the forecast section on page 81 et seq. of the MLP Group's Annual Report 2o14.
In the period under review there were no significant changes in our expectations of the overall future industry situation and the competitive environment. A detailed description of these expectations can be found in the forecast section on pages 82 to 89 of the MLP Group's Annual Report 2o14.
In old-age provision, further hesitancy is expected throughout the industry with respect to citizens' continued reservations in terms of signing long-term contracts. Here, the reduction in the guaranteed interest rate is likely to hamper new business. In private health insurance too, no appreciable improvements in the market conditions can be expected in the near term. In wealth management, risks associated with market corrections will continue.
With respect to the course of the financial year 2o15, the MLP Group does not expect any significant deviation from the business development forecast that we described on pages 89 to 92 of the Annual Report 2o14.
For the financial year 2o15, MLP expects that difficult market conditions will continue. We anticipate stable revenues in old-age provision and expect to achieve slight growth in health insurance and wealth management. Overall, and based on stable administration costs of around € 255 million, we anticipate that EBIT will rise slightly. This forecast is based on the assumption that there is no significant further deterioration in the framework conditions. This outlook documents our aim to achieve profitable growth – despite difficult markets and extensive investments to win over new consultants.
We have good financial strength which we intend to utilise together with our market positioning in order to further expand our competitive position. We therefore also continue to expect that the overall development of the MLP Group will be positive.
| 1st quarter | 1st quarter | ||
|---|---|---|---|
| All figures in €'000 | Notes | 2015 | 2014** |
| Revenue | (6) | 125,868 | 112,821 |
| Other revenue | 4,996 | 5,970 | |
| Total revenue | 130,864 | 118,790 | |
| Commission expenses | (7) | –58,371 | –51,172 |
| Interest expenses | –404 | –866 | |
| Personnel expenses | (8) | –27,340 | –27,797 |
| Depreciation and impairments | (9) | –4,891 | –3,307 |
| Other operating expenses | (10) | –33,186 | –32,360 |
| Earnings from investments accounted for using the equity method | 362 | 153 | |
| Earnings before interest and tax (EBIT) | 7,034 | 3,441 | |
| Other interest and similar income | 121 | 158 | |
| Other interest and similar expenses | –297 | –199 | |
| Finance cost | (11) | –177 | –40 |
| Earnings before tax (EBT) | 6,857 | 3,401 | |
| Income taxes | –1,628 | –741 | |
| Net profit | 5,229 | 2,660 | |
| Of which attributable to | |||
| owners of the parent company | 5,229 | 2,660 | |
| Earnings per share in €* | |||
| basic/diluted | 0.05 | 0.02 |
* Basis of calculation: Average number of shares at March 31, 2015: 107,877,738.
** Previous year's values adjusted. The adjustments are disclosed under Note 3.
| 1st quarter | 1st quarter | |
|---|---|---|
| All figures in €'000 | 2015 | 2014* |
| Net profit | 5,229 | 2,660 |
| Gains/losses due to the revaluation of defined benefit obligations | –5,490 | –1,972 |
| Deferred taxes on non-reclassifiable gains/losses | 1,603 | 571 |
| Non-reclassifiable gains/losses | –3,888 | –1,400 |
| Gains/losses from changes in the fair value of available-for-sale securities | 635 | 675 |
| Deferred taxes on non-reclassifiable gains/losses | –184 | –210 |
| Reclassifiable gains/losses | 452 | 465 |
| Other comprehensive income | –3,436 | –935 |
| Total comprehensive income | 1,794 | 1,725 |
| Of which attributable to | ||
| owners of the parent company | 1,794 | 1,725 |
* Previous year's values adjusted. The adjustments are disclosed under Note 3.
| All figures in €'000 | Notes | March 31, 2015 | Dec. 31, 2014 |
|---|---|---|---|
| Intangible assets | 154,045 | 156,182 | |
| Property, plant and equipment | 65,773 | 66,037 | |
| Investment property | 7,249 | 7,262 | |
| Investments accounted for using the equity method | 3,134 | 2,772 | |
| Deferred tax assets | 8,753 | 6,728 | |
| Receivables from clients in the banking business | 495,291 | 495,569 | |
| Receivables from banks in the banking business | 546,171 | 559,316 | |
| Financial assets | (12) | 175,943 | 145,276 |
| Tax refund claims | 19,812 | 18,743 | |
| Other receivables and assets | (13) | 98,428 | 117,665 |
| Cash and cash equivalents | 52,516 | 49,119 | |
| Total | 1,627,115 | 1,624,668 |
| All figures in €'000 | Notes | March 31, 2015 | Dec. 31, 2014 |
|---|---|---|---|
| Shareholders' equity | (14) | 378,589 | 376,795 |
| Provisions | 101,354 | 92,049 | |
| Deferred tax liabilities | 7,323 | 7,404 | |
| Liabilities due to clients in the banking business | 1,022,668 | 1,007,728 | |
| Liabilities due to banks in the banking business | 19,840 | 17,380 | |
| Tax liabilities | 6,021 | 5,531 | |
| Other liabilities | (13) | 91,320 | 117,780 |
| Total | 1,627,115 | 1,624,668 |
| All figures in €'000 | 1st quarter 2015 |
1st quarter 2014 |
|---|---|---|
| Cash flow from operating activities | 35,384 | 28,698 |
| Cash flow from investing activities | –11,987 | –37,179 |
| Cash flow from financing activities | – | – |
| Change in cash and cash equivalents | 23,397 | –8,481 |
| Cash and cash equivalents at the end of the period | 95,516 | 52,883 |
The notes on the statement of cash flow appear in Note 15.
| 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 shareholders' equity |
|---|---|---|---|---|---|---|
| As of Jan. 1, 2014 | 107,878 | 142,184 | 837 | –4,750 | 128,329 | 374,477 |
| Retrospective adjustments | – | – | – | – | –4,020 | –4,020 |
| As of Jan. 1, 2014 (adjusted) | 107,878 | 142,184 | 837 | –4,750 | 124,309 | 370,457 |
| Net profit | – | – | – | – | 2,660 | 2,660 |
| Other comprehensive income | – | – | 465 | -1,400 | – | –935 |
| Total comprehensive income | – | – | 465 | -1,400 | 2,660 | 1,725 |
| As of March 31, 2014 | 107,878 | 142,184 | 1,302 | -6,150 | 126,970 | 372,182 |
| As of Jan. 1, 2015 | 107,878 | 142,184 | 1,460 | –10,730 | 136,004 | 376,795 |
| Net profit | – | – | – | – | 5,229 | 5,229 |
| Other comprehensive income | – | – | 452 | –3,888 | – | –3,436 |
| Total comprehensive income | – | – | 452 | –3,888 | 5,229 | 1,794 |
| As of March 31, 2015 | 107,878 | 142,184 | 1,912 | –14,618 | 141,233 | 378,589 |
* Previous year's values adjusted. The adjustments are disclosed under Note 3.
** Reclassifiable gains/losses.
The consolidated financial statements were prepared by MLP AG, Wiesloch, Germany, the ultimate parent company of the MLP Group. MLP AG is listed in the Mannheim Commercial Register under the number HRB 332697 at the address Alte Heerstraße 4o, 69168 Wiesloch, Germany.
Since it was founded in 1971, MLP has been operating as a broker and adviser for academics and other discerning clients in the fields of old-age provision including occupational pension provision, health care, non-life insurance, loans and mortgages, wealth management and banking services.
The interim financial report has been prepared in line with the regulations set out in IAS 34 "Interim financial reporting". It is based on the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) as well as the interpretations of the International Financial Reporting Interpretation Committee (IFRIC), as applicable within the European Union (EU). In accordance with the provisions of IAS 34, the scope of the report has been reduced compared to the consolidated financial statements at December 31, 2o14.
Except for the changes presented in the notes under item (3), the condensed consolidated interim financial statements are based on the accounting and valuation methods as well as the consolidation principles that were applied to the Group financial statements for the financial year 2o14. These are presented in the Group notes of the annual report 2o14 that can be downloaded from the company's website (www.mlp-ag.com).
The interim financial report has been drawn up in euros (€), which is the functional currency of the parent company. Unless otherwise specified, all amounts are stated in thousands of euros (€'ooo). Both single and cumulative figures are values with the smallest rounding difference. As a result, differences to reported total amounts may arise when the individual values shown are added up.
The accounting policies applied are the same as those used in the previous year, with the following exceptions.
As described in the Annual Report, in the financial year 2o14 MLP became aware of a case that was recorded inappropriately in the previous years. The following tables show the effects of this correction on the previous year's values:
| Jan 1, 2014 | |||
|---|---|---|---|
| All figures in €'000 | Before adjustment | Adjustment | After adjustment |
| Deferred tax assets | 1,974 | 1,284 | 3,258 |
| Other receivables and assets | 109,164 | –4,512 | 104,653 |
| Total assets | 1,536,865 | –3,227 | 1,533,638 |
| Shareholders' equity | 374,477 | –4,020 | 370,457 |
| Provisions | 85,138 | –1,000 | 84,138 |
| Deferred tax liabilities | 8,628 | –356 | 8,272 |
| Other liabilities | 106,560 | 2,148 | 108,708 |
| Total liabilities and shareholders' equity | 1,536,865 | –3,227 | 1,533,638 |
| 1st quarter 2014 | |||
|---|---|---|---|
| All figures in €'000 | Before adjustment | Adjustment | After adjustment |
| Other revenue | 6,970 | –1,000 | 5,970 |
| Total revenue | 119,790 | –1,000 | 118,790 |
| Earnings before interest and tax (EBIT) | 4,441 | –1,000 | 3,441 |
| Earnings before tax (EBT) | 4,401 | –1,000 | 3,401 |
| Income taxes | –1,031 | 290 | –741 |
| Net profit | 3,371 | –710 | 2,660 |
| Total comprehensive income | 2,435 | –710 | 1,725 |
| Earnings per share | |||
| basic/diluted | 0.03 | –0.01 | 0.02 |
In the financial year 2o15 the following new or revised standards are to be used for the first time:
There were no significant effects on the representation of the Group's net assets, financial position or results of operations.
As expected, revenue showed a weaker development in the first quarter 2o15 following a strong fourth quarter in the financial year 2o14. Nevertheless, in view of the usual seasonal influences on business operations, the group expects to achieve higher earnings for the remainder of the financial year than in the first quarter.
There were no significant changes compared to December 31, 2o14.
| Financial services | FERI | Holding | ||||
|---|---|---|---|---|---|---|
| All figures in €'000 | 1st quarter 2015 |
1st quarter 2014* |
1st quarter 2015 |
1st quarter 2014 |
1st quarter 1st quarter 2015 |
1st quarter 2014 |
| Revenue | 96,333 | 89,468 | 30,425 | 24,133 | – | – |
| of which total inter-segment revenue | 789 | 708 | 100 73 |
– | – | |
| Other revenue | 4,132 | 3,890 | 942 848 |
2,745 | 4,044 | |
| of which total inter-segment revenue | 494 | 509 | – – |
2,330 | 2,303 | |
| Total revenue | 100,465 | 93,358 | 31,367 | 24,981 | 2,745 | 4,044 |
| Commission expenses | –41,544 | –37,696 | –17,578 | –14,091 | – | – |
| Interest expenses | –404 | –867 | – – |
– | – | |
| Personnel expenses | –19,311 | –19,012 | –7,020 | –6,178 | –1,009 –2,607 |
|
| Depreciation and impairments | –3,946 | –2,202 | –437 | –505 | –508 | –599 |
| Other operating expenses | –30,784 | –29,914 | –2,705 | –2,611 | –2,690 –2,685 |
|
| Earnings from investments accounted for using the equity method | 362 | 153 | – – |
– | – | |
| Segment earnings before interest and tax (EBIT) | 4,838 | 3,821 | 3,626 | 1,596 | –1,461 –1,847 |
|
| Other interest and similar income | 98 | 72 | 8 0 |
39 | 96 | |
| Other interest and similar expenses | –196 | –62 | –41 –48 |
–121 | –144 | |
| Finance cost | –98 | 10 | –33 –48 |
–81 | –48 | |
| Earnings before tax (EBT) | 4,740 | 3,831 | 3,593 | 1,548 | –1,542 –1,895 |
|
| Income taxes | ||||||
| Net profit |
* Previous year's values adjusted. The adjustments are disclosed under Note 3.
| Total | Consolidation | Holding | FERI | ||||
|---|---|---|---|---|---|---|---|
| 1st quarter 2014* |
1st quarter 2015 |
1st quarter 2014 |
1st quarter 2015 |
1st quarter 2014 |
1st quarter 2015 |
1st quarter 2014 |
1st quarter 2015 |
| 112,821 | 125,868 | –781 | –890 | – | – | 24,133 | 30,425 |
| – | – | –781 | –890 | – | – | 73 | 100 |
| 5,970 | 4,996 | –2,812 | –2,824 | 4,044 | 2,745 | 848 | 942 |
| – | – | –2,812 | –2,824 | 2,303 | 2,330 | – | – |
| 118,790 | 130,864 | –3,593 | –3,713 | 4,044 | 2,745 | 24,981 | 31,367 |
| –51,172 | –58,371 | 615 | 751 | – | – | –14,091 | –17,578 |
| –866 | –404 | 1 | 1 | – | – | – | – |
| –27,797 | –27,340 | – | – | –2,607 | –1,009 | –6,178 | –7,020 |
| –3,307 | –4,891 | – | – | –599 | –508 | –505 | –437 |
| –32,360 | –33,186 | 2,849 | 2,993 | –2,685 | –2,690 | –2,611 | –2,705 |
| 153 | 362 | – | – | – | – | – | – |
| 3,441 | 7,034 | –128 | 31 | –1,847 | –1,461 | 1,596 | 3,626 |
| 158 | 121 | –10 | –25 | 96 | 39 | 0 | 8 |
| –199 | –297 | 56 | 61 | –144 | –121 | –48 | –41 |
| –40 | –177 | 46 | 36 | –48 | –81 | –48 | –33 |
| 3,401 | 6,857 | –82 | 67 | –1,895 | –1,542 | 1,548 | 3,593 |
| –741 | –1,628 | ||||||
| 2,660 | 5,229 |
| 1st quarter | 1st quarter | |
|---|---|---|
| All figures in €'000 | 2015 | 2014 |
| Old-age provision | 42,033 | 40,132 |
| Wealth management | 40,699 | 32,550 |
| Non-life insurance | 20,113 | 18,809 |
| Health insurance | 11,813 | 11,380 |
| Loans and mortgages | 3,153 | 2,926 |
| Other commission and fees | 2,496 | 1,264 |
| Commission and fees | 120,308 | 107,061 |
| Interest income | 5,560 | 5,760 |
| Total | 125,868 | 112,821 |
In the period from January 1 to March 31, 2o15 commission expenses rose from € 51,172 thsd to € 58,371 thsd compared to same period of the previous year. These mainly contain the commissions and other fee components for the freelance MLP consultants in the financial services segment. For further explanations please refer to the section "Results Of Operations" of the Group Interim Management Report.
Personnel expenses decreased in the period from January 1 to March 31, 2o15 compared to the same period of the previous year from € 27,797 thsd to € 27,34o thsd. For further explanations please refer to the section "Personnel" of the Group Interim Management Report.
At March 31, 2o15, the MLP Group had the following numbers of employees in the strategic fields of business:
| March 31, 2015 | March 31, 2014 | |||||
|---|---|---|---|---|---|---|
| of which executive employees |
of which mar ginal part-time employees |
of which executive employees |
of which mar ginal part-time employees |
|||
| Financial services |
1,304 | 28 | 81 | 1,318 | 33 | 93 |
| FERI | 234 | 8 | 54 | 231 | 8 | 55 |
| Holding | 7 | 2 | – | 8 | 2 | – |
| Total | 1,545 | 38 | 135 | 1,557 | 43 | 148 |
Depreciation and impairments includes non-scheduled write-downs on intangible assets of € 1,5oo thsd (previous year: € o thsd).
| 1st quarter | 1st quarter | |
|---|---|---|
| All figures in €'000 | 2015 | 2014 |
| IT operations | 11,860 | 11,408 |
| Rental and leasing | 3,183 | 3,408 |
| Administration operations | 2,785 | 2,776 |
| Consultancy | 2,060 | 2,295 |
| External services – banking business | 1,571 | 1,499 |
| Representation and advertising | 1,476 | 1,636 |
| Training and further education | 1,229 | 1,026 |
| Depreciation and impairments of other receivables and assets | 1,049 | 334 |
| Premiums and fees | 1,032 | 1,107 |
| Other external services | 953 | 1,008 |
| Entertainment | 884 | 923 |
| Travel expenses | 753 | 928 |
| Expenses for commercial agents | 750 | 653 |
| Insurance | 659 | 644 |
| Maintenance | 356 | 624 |
| Other employee-related expenses | 335 | 237 |
| Audit | 239 | 227 |
| Depreciation and impairments of other receivables from clients in the banking business | 233 | 195 |
| Expenses from the disposal of assets | 39 | 52 |
| Sundry other operating expenses | 1,739 | 1,381 |
| Total | 33,186 | 32,360 |
The costs of IT operations are mainly attributable to IT services and computer centre services that have been outsourced to an external service provider. The expenses for administration operations contain costs relating to building operations, office costs and communication costs. The consulting costs are made up of tax advice costs, legal advice costs as well as general and IT consulting costs. The item "External services – banking business" mainly contains securities settlement and transaction costs in connection with the MLP credit card. Expenses for representation and advertising include costs incurred due to media presence and client information activities. Expenses for commercial agents include costs for former consultants and the training allowance granted for new consultants. Depreciation and impairments of other receivables and assets comprise allowances for receivables from commercial agents. Sundry other operating expenses essentially comprise goodwill payments, remuneration for members of the Supervisory Board and expenses for other taxes.
| All figures in €'000 | 1st quarter 2015 |
1st quarter 2014 |
|---|---|---|
| Other interest and similar income | 121 | 158 |
| Interest expenses from financial instruments | –177 | –52 |
| Interest expenses from net obligations for defined benefit plans | –120 | –146 |
| Other interest and similar expenses | –297 | –199 |
| Finance cost | –177 | –40 |
The reduction in the finance cost is primarily attributable to higher expenses from accrued interest on provisions and lower income from bank deposits.
| All figures in €'000 | March 31, 2015 | Dec 31, 2014 |
|---|---|---|
| Held-to-maturity investments | 54,474 | 43,983 |
| Financial assets at fair value through profit and loss | 20,597 | 20,453 |
| Available-for-sale financial assets | 5,054 | 5,074 |
| Debenture and other fixed income securities | 80,125 | 69,510 |
| Available-for-sale financial assets | 6,380 | 6,129 |
| Financial assets at fair value through profit and loss | 1,288 | 1,231 |
| Shares and other variable yield securities | 7,668 | 7,359 |
| Fixed and time deposits (loans and receivables) | 83,134 | 63,138 |
| Investments in non-consolidated subsidiaries (available-for-sale financial assets) | 5,016 | 5,268 |
| Total | 175,943 | 145,276 |
The increase in financial investments is primarily attributable to the outflow of fixed-term deposits and of debentures.
Due to the seasonally stronger year-end business, high receivables from insurance companies as well as high liabilities towards commercial agents at December 31, 2o14 had to be shown which were then balanced out in the first quarter of 2o15. Through the seasonal influences a lower amount of receivables and liabilities were built up in the first quarter of 2o15.
The share capital of MLP AG is made up of 1o7,877,738 (previous year: 1o7,877,738) no-par-value shares. The retained earnings include a statutory reserve of € 3,117 thsd (previous year: € 3,117 thsd).
The Executive Board and the Supervisory Board of MLP AG propose to the Annual General Meeting on June 18, 2o15 a dividend of € 18,339 thsd (previous year: € 17,26o thsd) for the financial year 2o14. This corresponds to € o.17 per share (previous year: € o.16 per share).
The consolidated statement of cash flow shows how cash and cash equivalents have changed in the course of the year as a result of inflows and outflows of funds. As per IAS 7 "Statement of Cash Flows", differentiation is made between cash flows from operating activities, from investing activities and from financing activities.
Cash flow from operating activities results from cash flows that cannot be defined as investing or financing activities. It is determined on the basis of net profit. As part of the indirect determination of cash flow, the changes in balance sheet items due to operating activities are adjusted by effects from changes to the scope of consolidation and currency translations. For further details, please refer to the "Financial position" section in the management report.
Cash flow from investing activities is mainly influenced by the investment of monies in fixedterm deposits as well as by matured term investments.
Cash flow from financing activities includes cash-relevant equity changes and loans used and paid back.
Cash and cash equivalents with a term to maturity of not more than three months are recorded under cash and cash equivalents. Cash equivalents are short-term financial assets which can be converted into cash at any time and which are only subject to minor value fluctuation risks.
| All figures in €'000 | March 31, 2015 | March 31, 2014 |
|---|---|---|
| Cash and cash equivalents | 52,516 | 35,883 |
| Loans ≤3 months | 43,000 | 17,000 |
| Cash and cash equivalents | 95,516 | 52,883 |
Cash and cash equivalents
Receivables of MLP Finanzdienstleistungen AG due from banks are included in cash and cash equivalents provided they are separable as own-account investing activities. Inseparable elements are allocated to the operating business of the banking business segment and therefore to cash flow from operating activities.
Compared to December 31, 2o14 contingent liabilities on account of sureties and warranties (face value of the obligation) increased from € 3,156 thsd to € 4,381 thsd. Compared to December 31, 2o14 irrevocable credit commitments (contingent liabilities) rose from € 32,874 thsd to € 46,615 thsd.
Beyond this there were no significant changes compared to December 31, 2o14.
The carrying amounts and fair values of financial assets and financial liabilities, including their (hierarchical) tiers, are grouped into financial instrument classes and categories as shown in the following tables:
| March 31, 2015 | |||||||
|---|---|---|---|---|---|---|---|
| Carrying | Fair value | No financial | |||||
| amount | instruments according to |
||||||
| IAS32/39 | |||||||
| Carrying | |||||||
| amount | |||||||
| corresponds | |||||||
| All figures in €'000 | to fair value | Level 1 | Level 2 | Level 3 | Total | ||
| Financial assets measured at fair value | 33,319 | 17,437 | 15,882 | 33,319 | |||
| Fair value option | 6,342 | 1,288 | 5,054 | 6,342 | |||
| Financial investments (share certificates and | |||||||
| structured bonds) | 6,342 | – | 1,288 | 5,054 | – | 6,342 | |
| Available-for-sale financial assets | 26,977 | 16,149 | 10,828 | 26,977 | |||
| Financial investments (share certificates and | |||||||
| investment fund shares) | 6,380 | – | 5,985 | 396 | – | 6,380 | |
| Financial assets (bonds) | 20,597 | – | 10,164 | 10,433 | – | 20,597 | |
| Financial assets measured at amortised cost | 1,305,927 | 494,330 | 16,207 | 415,585 | 415,868 | 1,341,991 | |
| Loans and receivables | 1,246,437 | 489,314 | 376,206 | 415,868 | 1,281,388 | ||
| Receivables from banking business – clients | 495,291 | 113,965 | – | – | 415,868 | 529,833 | |
| Receivables from banking business – banks | 546,171 | 170,374 | – | 376,206 | – | 546,579 | |
| Financial investments (fixed and time deposits) | 83,134 | 83,134 | – | – | – | 83,134 | |
| Other receivables and assets | 69,325 | 69,325 | – | – | – | 69,325 | 29,102 |
| Cash and cash equivalents | 52,516 | 52,516 | – | – | – | 52,516 | |
| Held-to-maturity investments | 54,474 | 16,207 | 39,380 | 55,587 | |||
| Financial assets (bonds) | 54,474 | – | 16,207 | 39,380 | – | 55,587 | |
| Available-for-sale financial assets | 5,016 | 5,016 | 5,016 | ||||
| Financial assets (investments) | 5,016 | 5,016 | – | – | – | 5,016 | |
| Financial liabilities measured at amortised cost | 1,100,771 | 1,065,882 | 35,119 | 1,101,001 | |||
| Liabilities due to banking business – clients | 1,022,668 | 1,005,993 | – | 16,742 | – | 1,022,735 | |
| Liabilities due to banking business – banks | 19,840 | 1,626 | – | 18,377 | – | 20,003 | |
| Other liabilities | 58,262 | 58,262 | – | – | – | 58,262 | 33,058 |
| Sureties and warranties | 4,381 | 4,381 | 4,381 | ||||
| Irrevocable credit commitments | 37,124 | 37,124 | 37,124 |
| Carrying amount |
Fair value | No financial instruments according to IAS32/39 |
|||||
|---|---|---|---|---|---|---|---|
| Carrying | |||||||
| amount corresponds |
|||||||
| All figures in €'000 | to fair value | Level 1 | Level 2 | Level 3 | Total | ||
| Financial assets measured at fair value | 32,887 | 17,073 | 15,814 | 32,887 | |||
| Fair value option | 6,305 | 1,231 | 5,074 | 6,305 | |||
| Financial investments | |||||||
| (share certificates and structured bonds) | 6,305 | – | 1,231 | 5,074 | – | 6,305 | – |
| Available-for-sale financial assets | 26,582 | 15,843 | 10,739 | 26,582 | |||
| Financial investments | |||||||
| (share certificates and investment fund shares) | 6,129 | – | 5,704 | 425 | – | 6,129 | – |
| Financial assets (bonds) | 20,453 | – | 10,138 | 10,315 | – | 20,453 | – |
| Financial assets measured at amortised cost | 1,307,510 | 528,314 | 16,704 | 394,047 | 401,837 | 1,340,902 | |
| Loans and receivables | 1,258,260 | 523,046 | 365,657 | 401,837 | 1,290,539 | ||
| Receivables from banking business – clients | 495,569 | 125,990 | – | – | 401,837 | 527,828 | – |
| Receivables from banking business – banks | 559,316 | 193,681 | – | 365,657 | – | 559,337 | – |
| Financial investments (fixed and time deposits) | 63,138 | 63,138 | – | – | – | 63,138 | – |
| Other receivables and assets | 91,118 | 91,118 | – | – | – | 91,118 | 26,547 |
| Cash and cash equivalents | 49,119 | 49,119 | – | – | – | 49,119 | – |
| Held-to-maturity investments | 43,983 | 16,704 | 28,390 | 45,095 | |||
| Financial assets (bonds) | 43,983 | – | 16,704 | 28,390 | – | 45,095 | – |
| Available-for-sale financial assets | 5,268 | 5,268 | 5,268 | ||||
| Financial assets (investments) | 5,268 | 5,268 | – | – | – | 5,268 | – |
| Financial liabilities measured at amortised cost | 1,124,066 | 1,091,172 | 32,893 | 1,124,066 | |||
| Liabilities due to banking business – clients | 1,007,728 | 991,307 | – | 16,466 | – | 1,007,773 | – |
| Liabilities due to banking business – banks | 17,380 | 907 | – | 16,427 | – | 17,335 | – |
| Other liabilities | 87,960 | 87,960 | – | – | – | 87,960 | 29,821 |
| Sureties and warranties | 3,156 | 3,156 | 3,156 | ||||
| Irrevocable credit commitments | 32,874 | 32,874 | 32,874 |
Cash and cash equivalents, receivables and liabilities due to banking business without agreed terms to maturity, trade receivables, receivables from companies in which the Group holds an interest and other assets all predominantly have short terms to maturity. Their carrying amounts on the balance sheet date are therefore almost identical to the fair values. The same applies to the trade accounts payable. In so far as fair values for stakes are not reliably determinable, they are measured at cost minus any impairments. At the balance sheet date there is no indication of fair values being lower than carrying amounts. There are also no plans to dispose of these investments. Nevertheless, in the first quarter a profit of € 916 thsd was realised from the disposal of stakes.
Insofar as there is an active market, which represents the principal market for financial assets and financial liabilities, the respective market prices on the closing date are used as the basis for determining the fair value. With investment shares, the fair value corresponds to the redemption prices published by the capital investment companies. If there is no active market on the closing date, the fair value is determined using recognised valuation models. The underlying accounting and valuation principles with respect to financial instruments remain unchanged compared to the previous year and are contained in the Annual Report 2o14.
The table below shows the valuation techniques that were used to determine tier 3 fair values, as well as the significant, non-observable input factors applied:
| Type | Valuation technique | Significant, non-observable input factors |
Relationship between significant, non-observable input factors and measurement at fair value |
|---|---|---|---|
| Receivables from banking business – clients with agreed maturity |
The valuation model takes into account the present value of the anticipated future cash inflows/outflows throughout the remaining term, which are discount ed using a risk-free discount rate. The discount rate is based on the current yield curve. Credit and default risks, ad ministration costs and expected return on equity are taken into account when determining future cash flows. |
Adjustment of cash flows by: • Credit and counterparty default risks • Administration costs • Anticipated return on equity |
The estimated fair value would increase (decrease) if: • the credit and default risk were to rise (fall) • the admin costs were to fall (rise) • the anticipated return on equity was to fall (rise) |
Within the scope of the ordinary business, legal transactions under standard market conditions were made between the Group and members of the Executive Board and the Supervisory board.
There were no significant changes compared to December 31, 2o14.
There were no appreciable events after the balance sheet date affecting the MLP Group's financial or asset situation.
Wiesloch, May 11, 2o15 MLP AG
Executive Board
Dr. Uwe Schroeder-Wildberg Manfred Bauer Reinhard Loose
Dr. Uwe Schroeder-Wildberg (Chairman, appointed until December 31, 2o17)
Manfred Bauer (Product Management, appointed until April 3o, 2o2o)
Reinhard Loose (Controlling, Purchasing, IT, Group Accounting, Risk Management, Internal Audit, Legal, Human Resources, appointed until January 31, 2o19)
Dr. Peter Lütke-Bornefeld (Chairman, appointed until 2o18)
Dr. h. c. Manfred Lautenschläger (Vice chairman, appointed until 2o18)
Dr. Claus-Michael Dill (appointed until 2o18)
Johannes Maret (appointed until 2o18)
Alexander Beer (Employee representative, appointed until 2o18)
Burkhard Schlingermann (Employee representative, appointed until 2o18)
Telephone +49 (o) 6222 • 3o8 • 832o Telefax +49 (o) 6222 • 3o8 • 1131 [email protected]
Telephone +49 (o) 6222 • 3o8 • 831o Telefax +49 (o) 6222 • 3o8 • 1131 [email protected]
5 MLP share, SDAX and DAXsector Financial Services, January to March 2015
MLP key figures
5 Key figures of the MLP share
May 12, 2o15 Publication of the financial results for the first quarter 2o15.
June 18, 2o15 Annual General Meeting of the MLP AG in Mannheim MLP AG holds its ordinary Annual General Meeting in Rosengarten in Mannheim.
November 12, 2o15 Publication of the financial results for the first nine months and the third quarter 2o15.
More:
www.mlp-ag.com, Investor Relations, Calendar
prognosis
This documentation includes certain prognoses and information on future developments founded on the conviction of MLP AG's Executive Board and on assumptions and information currently available to MLP AG. Words such as "expect", "estimate", "assume", "intend", "plan", "should", "could", "project" and similar terms used in reference to the company describe prognoses based on certain factors subject to uncertainty.
Many factors can contribute to the actual results of the MLP group differing significantly from the prognoses made in such statements.
MLP AG accepts no obligation to the public for updating or correcting prognoses .All prognoses and predictions are subject to various risks and uncertainties which can lead to the actual results numerically differing from expectations. The prognoses reflect the points of view at the time when they were made.
MLP AG Alte Heerstraße 40 69168 Wiesloch Tel +49 (0) 6222 • 308 • 8320 Fax +49 (0) 6222 • 308 • 1131 www.mlp-ag.com
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