Quarterly Report • May 15, 2014
Quarterly Report
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Interim Group Report for the fi rst quarter 2o14
| All fi gures in € million | 1st quarter 2014 |
1st quarter 2013 |
Change in % |
|---|---|---|---|
| MLP Group | |||
| Total revenue | 119.8 | 116.4 | 2.9% |
| Revenue | 112.8 | 112.3 | 0.4% |
| Other revenue | 7.0 | 4.1 | 70.7% |
| Earnings before interest and tax (EBIT) | 4.4 | 4.0 | 10.0% |
| EBIT margin (%) | 3.7% | 3.4% | – |
| Net profi t | 3.4 | 3.2 | 6.3% |
| Earnings per share (diluted/undiluted) in € | 0.03 | 0.03 | 0.0% |
| Cashfl ow from operating activities | 28.7 | 63.0 | –54.4% |
| Capital expenditure | 5.2 | 4.9 | 6.1% |
| Shareholders' equity | 376.9 | 1 374.5 |
0.6% |
| Equity ratio (%) | 23.5% | 24.4% 1 |
– |
| Balance sheet total | 1,605.9 | 1,536.9 1 |
4.5% |
| Clients | 836,200 | 830,300 1 |
0.7% |
| Consultants | 1,979 | 1,998 1 |
–1.0% |
| Branch offi ces | 170 | 169 | 0.6% |
| Employees | 1,557 | 1,549 | 0,5% |
| Arranged new business | |||
| Old-age provisions (premium sum) | 630.0 | 550.0 | 14.5% |
| Loans mortgages | 349.6 | 361.3 | –3.2% |
| Assets under management in € billion | 24.4 | 24.5 1 |
–0.4% |
¹ As of December 31, 2013
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 fi nancial statements 2o13. In this regard it presents signifi cant events and business transactions of the fi rst quarter 2o14 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, fi nancial position and net assets of the MLP Group in accordance with the International Financial Reporting Standards (IFRS), the corresponding fi gures 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.
MLP is Germany's leading independent consulting company. Supported by comprehensive research, the Group provides a holistic consulting approach that covers all economic and fi nancial questions for private and corporate clients, as well as institutional investors. The key aspect of the consulting approach is the independence from insurance companies, banks and investment fi rms. The MLP Group manages total assets of around € 24.4 billion and supports more than 835,ooo private and 5,ooo corporate clients or employers. The fi nancial services and wealth management consulting company was founded in 1971 and holds a banking license.
The concept of the founders, which still forms the basis of the current business model, is to provide long-term consulting for academics and other discerning clients in the fi elds of provision, fi nancial investment, health insurance, non-life insurance, loans and mortgages and banking. Private individuals with assets of over € 5 million and institutional clients benefi t from extensive wealth management and consulting services as well as receiving economic forecasts and ratings provided by the subsidiaries of the FERI Group. Supported by its subsidiary TPC, MLP also provides companies with independent consulting and conceptual services in all issues pertaining to occupational pension schemes and remuneration.
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.
During the fi rst quarter of 2o14, changes took place within the organisation and administration area compared to the fundamental principles of the Group described in the MLP Group's Annual Report 2o13. These changes are explained in the following section. Detailed information concerning "Business model", "Goals and strategies" and "Control system" can be found on pages 18 to 31 of the MLP Group's Annual Report 2o13.
On March 31, 2o14 Muhyddin Suleiman, Executive Board member of MLP AG and MLP Finanzdienstleistungen AG with responsibility for sales, resigned from both executive bodies by mutual agreement. The position was not refi lled. Since April 1, 2o14 the Executive Board of MLP AG has thus consisted of three members instead of the previous confi guration with four members. In addition to Chief Executive Offi cer Dr. Uwe Schroeder-Wildberg, the Executive Board still comprises Manfred Bauer (Product Management) and Reinhard Loose (Finance).
The reallocation of responsibilities within the Executive Board resulted in the following changes: from April 2o14 Dr. Uwe Schroeder-Wildberg assumed responsibility for sales in addition to strategy, communication & policy, marketing and market & innovation. In addition to his existing areas, Reinhard Loose took over responsibility for human resources, legal affairs, internal audit and compliance.
There were no changes to the scope of consolidation during the period under review.
The macroeconomic and industry-specifi c framework conditions did not signifi cantly differ from the outline provided in the Annual Report 2o13 of the MLP Group (pages 32 to 4o).
Compared to neighbouring European countries, the overall economic situation in Germany in the fi rst quarter continued to be characterised by relatively robust growth. According to estimates issued by the German Institute for Economic Research (DIW), the price-adjusted gross domestic product (GDP) rose by o.7 % in the fi rst three months of 2o14 (2o13: o.4 %, Q4 2o13: o.4 %). The situation on the labour market also remained stable. According to the federal agency for labour the unemployment rate in March fell by o.2 % compared to the previous month and stood at 7.1 % (2o13: 6.9 %).
The ongoing public discussion concerning the low-interest rate environment as well as the extensive negative reports concerning life insurers and their products continue to burden the market environment in old-age provision. According to fi gures released by the German Insurers Association (GDV), the volume of brokered new business in the market fell by 16 % in the period January to March 2o14 compared to the corresponding timeframe in the previous year.
The private health insurance sector in Germany remains characterised by a signifi cant level of hesitancy and reservation on the part of the general public. Figures released by the Association of Private Health Insurance in March 2o14 revealed that the number of people with full private health insurance fell by around 66,ooo in 2o13. However, citizens still have a positive attitude towards the effi cacy of private health insurance. The MLP Health Report, which MLP compiled in cooperation with the Allensbach Institute, indicated that 87 % of private healthcare insurees are satisfi ed with the level of coverage their policy provides, whereas only 66 % of statutory health insurance policyholders stated the same. The study fi ndings highlight the high potential of this consulting area for the future.
In addition, there is growing recognition among German citizens of the need for long-term nursing care provision. Almost half of the population (45 %) are concerned about not having adequate insurance cover in the event of requiring long-term nursing care. Furthermore, a clear majority (6o %) among the general public welcomes the introduction of state subsidies for private supplementary insurance for long-term nursing care ("Pfl ege-Bahr").
In the first three months of 2o14, Assets under Management in the market rose to € 2,159 billion (Dec. 31, 2o13: € 2,1o5 billion). This growth continued to be primarily driven by institutional business. In retail funds, low-risk investments in particular registered net infl ows, whereas mutual equity funds recorded outfl ows amounting to € 1.o billion.
The competitive conditions and the regulatory environment during reporting period did not differ signifi cantly from the information provided in the Annual Report 2o13 of the MLP Group (pages 38 to 4o).
The MLP Group was an early adopter of numerous requirements that the legislator is now stipulating with new sets of rules and standards. We consider this to provide us with a clear competitive edge over other market participants. In the coming years the legislator will further tighten the requirements which will, in turn, provide further stimulus for consolidation of the market.
In the fi rst quarter of 2o14, total revenue increased slightly compared to the same period in the previous year. Within a diffi cult market environment, old-age provision showed a fi rst pick-up again and revenue growth was also achieved in wealth management and non-life insurance. In loans and mortgages, revenue remained at the level of the previous year. Important early indicators for future revenue development also showed a positive trend – particularly the new client fi gure as well as new business in old-age provision. Burdened by tough market conditions, revenue in health insurance fell below the level of the previous year.
Due to the seasonality of our business performance, the fi rst quarter only contributes a relatively small amount to the full-year result. Major portions of the overall result are traditionally achieved in the second half-year – and especially in the fi nal quarter.
There were no signifi cant changes in the corporate structure during the period under review.
Despite the usual seasonal decrease in the fi rst quarter of the year, the number of consultants in the fi rst three months fell only slightly and amounted to 1,979 (Dec. 31, 2o13: 1,998). The turnover rate stood at 1o.5 %, and thus remained well below our target range of a maximum of 12 % and 15 %. In the fi rst quarter, MLP opened two new branch offi ces in the university segment – one in Münster and one in Frankfurt/Main.
New client acquisition showed pleasing development in the fi rst quarter, rising to 6,ooo new clients, a fi gure that was signifi cantly above the fi rst quarter of 2o13 (5,ooo). Consequently, the total number of clients rose to 836,2oo (Dec. 31, 2o13: 83o,3oo).
Since our consulting fi rm is a service provider, we are not engaged in any research and development in the classic sense.
In the period from January to March 2o14 total revenue of the MLP Group rose by 2.9 % to € 119.8 million (€ 116.4 million). Revenue from commissions and fees totalled € 1o7.1 million (€ 1o6.4 million) and was thereby also slightly above the same period of the previous year. Interest income remained around the previous year's level and amounted to € 5.8 million (€ 5.9 million). Other revenue increased from € 4.1 million to € 7.o million. This rise was among others due to the positive effect on MLP of a court ruling with respect to a negative declaratory judgement against several former FERI shareholders.
The revenue breakdown by consulting area shows initial indications of positive development in old-age provision. New business brokered by MLP rose by around 15 % to € 63o million (€ 55o million). In the fi rst quarter, occupational provision accounted for 15 % of this fi gure, compared to 14 % in the previous year. However, these positive trends are not yet fully refl ected in the revenue from commissions and fees which rose by 3.1 % to € 4o.1 million (€ 38.9 million).
Following a strong performance in the same quarter of the previous year, revenue in wealth management climbed to € 32.6 million (€ 31.7 million). Assets under management amounted to € 24.4 billion at March 31, 2o14 (Dec. 31, 2o13: € 24.5 billion). Revenue in non-life insurance also rose slightly, increasing from € 18.2 million to € 18.8 million. Revenue in loans and mortgages remained at the previous year's level and amounted to € 2.9 million (€ 2.9 million); additional earnings from the joint venture company MLP Hyp totalled € o.2 million (€ o.1 million). Other commissions and fees amounted to € 1.3 million (€ o.7 million).
The market conditions in health insurance continue to be diffi cult and in the fi rst quarter many clients remained hesitant. Against such a backdrop, revenue in this area fell from € 13.9 million to € 11.4 million.
The distribution of revenue highlights the fact that MLP is more broadly positioned than ever before. At 3o, 18 and 11 % respectively, wealth management, non-life insurance as well as health insurance all make signifi cant contributions towards the overall revenue from commissions and fees, thereby increasing the stability of the revenue development.
Commission expenses primarily contain performance-linked commission payments to our consultants. In addition, this item also includes commission expenses in the FERI segment which result from the activities of our Luxembourg-based subsidiary that specialises in the administration of funds. Variable expenses incurred in this business area include payments to the deposit bank and for fund sales. In the fi rst quarter, commission expenses totalled € 51.2 million which was slightly above the previous year's fi gure of € 49.1 million. Interest expenses fell from € 1.7 million to € o.9 million.
Administration costs (defi ned as the sum of personnel costs, depreciation and amortisation as well as other operating expenses) increased slightly to € 63.5 million (€ 61.7 million). Here, personnel expenses rose from € 26.7 million to € 27.8 million mainly due to a one-off exceptional cost. Depreciation and amortisation increased to € 3.3 million (€ 2.9 million). Other operating expenses remained almost unchanged at € 32.4 million (€ 32.1 million).
Despite a one-off exceptional cost in personnel expenses, EBIT (earnings before interest and tax) in the fi rst quarter increased by 1o.o % to € 4.4 million (€ 4.o million). The rise was due to higher total revenue.
| EBIT development – comparison (all fi gures in € million) | |||
|---|---|---|---|
| Q1 2014 Q1 2013 |
4.0 | 4.4 |
The fi nance cost of the MLP Group reduced slightly from € o.1 million to € o.o million in the fi rst quarter 2o14. The tax rate stood at 23.4 %. Group net profi t in the fi rst three months of 2o14 thus amounted to € 3.4 million after € 3.2 million in the same period of the previous year. The diluted and basic earnings per share were € o.o3 (€ o.o3).
| All fi gures in € million | Q1 2014 | Q1 2013 | Change in % |
|---|---|---|---|
| Total revenue | 119.8 | 116.4 | 2.9 % |
| Gross profi t ¹ | 68.5 | 65.6 | 4.4 % |
| Gross profi t margin (%) | 57.2 % | 56.4 % | 1.4 % |
| EBIT | 4.4 | 4.0 | 10.0 % |
| EBIT margin (%) | 3.7 % | 3.4 % | 8.8 % |
| Finance Cost | 0.0 | 0.1 | –100.0 % |
| EBT | 4.4 | 4.1 | 7.3 % |
| EBT margin (%) | 3.7 % | 3.5 % | 5.7 % |
| Income taxes | –1.0 | –1.0 | 0.0 % |
| Net profi t | 3.4 | 3.2 | 6.3 % |
| Net margin (%) | 2.8 % | 2.7 % | 3.7 % |
¹ Defi nition: ¹ Defi nition: Gross profi t results from total revenue less commission expenses and interest expenses.
Related party disclosures are contained in Note 18.
Detailed information concerning the aims of fi nancial management is contained on page 46 of the MLP Group's Annual Report 2o13.
The MLP business model is low capital intensive and generates high cash fl ows. However, increased capital has been budgeted for the next few years in order to meet the revised defi nition of equity and the stricter requirements of Basel III.
At present we are not using any borrowed funds in the form of securities or promissory note bond issues to fi nance the Group long-term. Our non-current assets are partially fi nanced by non-current liabilities. Current liabilities to clients and banks from the banking business also represent further refi nancing funds, which are generally available to us in the long term.
At March 31, 2o14 liabilities towards clients and banks from the banking business which totalled € 1,o38.3 million (Dec. 31, 2o13: € 956.4 million) were offset on the assets side of the balance sheet by receivables from clients and fi nancial institutions from the banking business amounting to € 1,o31.1 million (Dec. 31, 2o13: € 981.7 million).
No capital measures were undertaken during the period under review.
Cash fl ow from operating activities fell to € 28.7 million compared to € 63.o million in the same period of the previous year. Here, signifi cant cash fl ows result from the deposit business with our clients and from the investment of these funds.
Cash fl ow from investing activities changed from € –3.6 million to € –37.2 million. In the reporting period, net term deposits with a term to maturity of more than three months and amounting to € 3o.o million were invested, whereas in the same period of the previous year no term deposits were invested.
At the end of the fi rst quarter 2o14, the Group had cash holdings amounting to € 147 million. The liquidity situation therefore remains very good. There are suffi cient cash reserves available to the Group. In addition to cash holdings, free lines of credit are also in place.
| in € million | 1st quarter 2014 |
1st quarter Q1 2013 |
|---|---|---|
| Cash and cash equivalents at the beginning of period | 61.4 | 60.7 |
| Cashfl ow from operating activities | 28.7 | 63.0 |
| Cashfl ow from investing activities | –37.2 | –3.6 |
| Cashfl ow from fi nancing activities | – | – |
| Change in cash and cash equivalents | –8.5 | 59.4 |
| Cash and cash equivalents at the end of period | 52.9 | 120.0 |
In the fi rst quarter, the investment volume of the MLP Group increased to € 5.2 million (€ 4.9 million). The major portion of the investment measures, accounting for 88 % of the total, was undertaken in the fi nancial services segment. Here, the investments were primarily made in IT. All investments were fi nanced from cash fl ow.
At March 31, 2o14 the balance sheet total of the MLP Group rose to € 1,6o5.9 million (Dec. 31, 2o13: € 1,536.9 million). On the assets side of the balance sheet there were changes primarily to the following items: Receivables from clients in the banking business reduced to € 459.8 million following € 491.6 million at December 31, 2o13. The decrease was mainly due to lower investments in promissory note bonds as well as decreasing receivables from clients from the credit card business. Receivables from fi nancial institutions from the banking business rose to € 571.3 million compared to € 49o.1 million at the year-end and largely refl ect an increase in investment in due-on-demand monies. At the reporting reference date, fi nancial assets climbed to € 18o.7 million (Dec. 31, 2o13: € 146.1 million), signifi cantly infl uenced by the investment of funds resulting from the profi t transfer from MLP Finanzdienstleistungen AG to MLP AG. Cash and cash equivalents reduced to € 35.9 million compared to € 46.4 at the year-end mainly due to redeployments in other asset classes. Tax refund claims rose to € 25.3 million (Dec. 31, 2o13: € 2o.6 million). Other receivables and assets fell to € 98.2 million (Dec. 31, 2o13: € 1o9.2 million). This item essentially comprises commission receivables from insurance companies for whom we have brokered insurance policies. Due to the traditionally stronger year-end business, these rise signifi cantly at the end of the year and then reduce again during the course of the following fi nancial year.
| March 31, | Dec. 31, | Change | |
|---|---|---|---|
| All fi gures in € million | 2014 | 2013 | in % |
| Intangible assets | 156.3 | 155.3 | 0.6 % |
| Property, plant and equipement | 66.3 | 65.8 | 0.8 % |
| Investment Property | 7.3 | 7.3 | 0.0 % |
| Investments acounted for using the equity method | 2.7 | 2.5 | 8.0 % |
| Deferred tax assets | 2.0 | 2.0 | 0.0 % |
| Receivables from clients in the banking business | 459.8 | 491.6 | –6.5 % |
| Receivables from banks in the banking business | 571.3 | 490.1 | 16.6 % |
| Financial assets | 180.7 | 146.1 | 23.7 % |
| Tax refund claims | 25.3 | 20.6 | 22.8 % |
| Other receivables and other assets | 98.2 | 109.2 | –10.1 % |
| Cash and cash equivalents | 35.9 | 46.4 | –22.6 % |
| Total | 1,605.9 | 1,536.9 | 4.5 % |
At the reference date on March 31, 2o14, the equity capital of the MLP Group stood at € 376.9 million and thereby remained around the level of December 31, 2o13 (€ 374.5 million). The equity capital situation of MLP therefore remains good with a balance sheet equity ratio 23.5 % (Dec. 31, 2o13: 24.4 %).
Provisions at the reference date rose to € 9o.9 million (Dec. 31, 2o13: € 85.1 million) in the light of the usual increase of additions for provisions for client support commission. Liabilities due to clients from the banking business increased by 8.4 % to € 1,o25.8 million (Dec. 31, 2o13: € 946.5 million) and mainly refl ect a further increase in client deposits. Liabilities due to fi nancial institutions from the banking business rose to € 12.5 million (Dec. 31, 2o13: € 9.9 million).Other liabilities fell from € 1o6.6 million to € 85.7 million. Among others, this was attributable to lower commission claims from our consultants. Due to our traditionally strong year-end business, commission claims by consultants rise sharply at the balance sheet reference date on December 31 and then fall again in the following quarters.
| All fi gures in € million | March 31, 2014 |
Dec. 31, 2013 |
Change in % |
|---|---|---|---|
| Shareholders' equity | 376.9 | 374.5 | 0.6 % |
| Provisions | 90.9 | 85.1 | 6.8 % |
| Deferred tax liabilities | 8.5 | 8.6 | –1.2 % |
| Liabilities due to clients in the banking business | 1,025.8 | 946.5 | 8.4 % |
| Liabilities due to bank in the banking business | 12.5 | 9.9 | 26.3 % |
| Tax liabilities | 5.6 | 5.7 | –1.8 % |
| Other liabilities | 85.7 | 106.6 | –19.6 % |
| Total | 1,605.9 | 1,536.9 | 4.5 % |
Following completion of the fi rst quarter 2o14 we keep to the statements made in the anticipated business development section on pages 93–97 of the Annual Report 2o13.
Accordingly, for the fi nancial year 2o14 – and based on the comparatively low base values in 2o13 – MLP expects a signifi cant increase in revenue in old-age provision and in health insurance. Furthermore, after the successful development of recent years, we also expect to achieve slight revenue growth in wealth management in 2o14. In the fi rst quarter, MLP recorded revenue growth both in old-age provision as well as in wealth management. Revenue in health insurance decreased in the fi rst quarter of this fi nancial year. However, MLP continues to anticipate a pickup in health insurance during the coming quarters.
Administration costs were burdened by a one-off exceptional cost but they otherwise ran operatively according to plan. Earnings development was therefore 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 51 et seq. of the MLP Group's Annual Report 2o13.
In the fi rst quarter of 2o14, total revenue in the fi nancial services segment increased slightly from € 93.7 million to € 94.4 million. Sales revenue fell slightly whereas other revenue rose from € 3.4 million to € 4.9 million – largely due to the release of provisions.
Commission expenses remained almost unchanged at € 37.7 million (€ 36.8 million). Personnel expenses amounted to € 19.o million and were thus slightly above the level of the previous year (€ 18.6 million). Depreciation and amortisation increased to € 2.2 million (€ 1.8 million). Other operating expenses amounted to € 29.9 million (€ 3o.1 million). EBIT (Earnings before interest and tax) totalled € 4.8 million (€ 4.9 million). The fi nance cost was € o.o million (€ o.1 million). EBT (Earnings before tax) therefore reached € 4.8 million compared to € 5.o million in the previous year.
| Total revenue and EBIT in the fi nancial services segment (in € million) | |||
|---|---|---|---|
| Q1 2014 | 4.8 | 94.4 | |
| Q1 2013 | 4.9 | 93.7 | |
| Total revenue | EBIT |
In the period under review total revenue in the FERI segment increased from € 24.1 million to € 25.o million. Due to business growth at the Luxembourg-based subsidiary which specialises in fund administration, commission expenses rose to € 14.1 million (€ 13.5 million). Personnel expenses reduced from € 7.2 million to € 6.2 million, resulting from one-off additional expenses in the previous year. EBIT climbed to € 1.6 million (€ o.5 million). EBT improved to € 1.5 million, after € o.5 million in the previous year.
In the Holding segment total revenue amounted to € 4.o million and thus considerably exceeded the previous year's level (€ 2.6 million), mainly due to a positive effect on MLP resulting from the negative declaratory judgement against several former FERI shareholders. Personnel expenses increased on account of a one-off exceptional cost to € 2.6 million (€ o.9 million). Other operating expenses rose slightly to € 2.7 million (€ 2.3 million). EBIT thus amounted to € –1.8 million compared to € –1.3 million in the previous year. The fi nance cost remained almost constant leading to EBT of € –1.9 million (€ –1.3 million).
As MLP is a knowledge-based service provider, qualifi ed and motivated employees and consultants represent the most important foundations for sustainable corporate success and for achieving the company targets described in the chapter entitled "Goals and strategies" on pages 23 et seq. of the MLP Group's Annual Report 2o13.
In the period under review the number of employees in the MLP Group increased slightly. At the reporting reference date on March 31, 2o14, MLP employed 1,557 people – 8 more than in the same period of the previous year.
| Segment | March 31, 2014 | March 31, 2013 |
|---|---|---|
| Financial services | 1,318 | 1,290 |
| FERI | 231 | 251 |
| Holding | 8 | 8 |
| Total | 1,557 | 1,549 |
There were no appreciable events after the balance sheet date affecting the MLP Group's net assets, fi nancial position or results of operations.
MLP's group-wide early risk detection and monitoring system is used as the basis for a group-wide active risk management. This system ensures appropriate identifi cation, 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 identifi cation of opportunities and corresponding assessment.
There were no signifi cant 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 fi rst quarter 2o14. The MLP Group has adequate liquidity. At the balance sheet reference date on March 31, 2o14, our core capital ratio stood at 13.8 % and thus remained above the 8 % level prescribed by the supervisory body. The decrease compared to the year-end (Dec. 31, 2o13: 16.3 %) was essentially due to the new regulations pertaining to Basel III, which include among others a change in offsetting the goodwill contained on the balance sheet against the equity capital. At the present time, no existence-threatening risks to the MLP Group have been identifi ed.
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 59 to 85 of the MLP Group's Annual Report 2o13.
In the period under review there were no signifi cant changes in our expectations of the overall future economic development. A detailed description of these expectations can be found in the forecast section on page 86 of the MLP Group's Annual Report 2o13.
In the period under review there were no signifi cant changes in our expectations of the future situation in the industry and the competitive environment. A detailed description of these expectations can be found in the forecast section on page 86 to 93 of the MLP Group's Annual Report 2o13.
Within the framework of the planned legislation concerning stabilisation of the German life insurance companies and better protection for policyholders, media reports circulating in 2o13 suggested that the German government is considering the introduction of changes to the acquisition commission paid on life insurance policies. However, no draft bill has yet materialised and the public statements issued thus far differ, in some cases, signifi cantly from one another. Furthermore, the impact of such measures would heavily depend on the specifi c structure of any possible new regulations. From a current perspective, MLP does not expect there to be any corresponding effect on the current fi nancial year and indeed holds the view that policymakers will not decide upon a solution that signifi cantly disadvantages quality providers such as MLP.
For the course of the fi nancial year 2o14 the MLP Group does not expect any signifi cant deviation from the anticipated business development that we presented on pages 93 to 97 of the Annual Report 2o13.
The previous fi nancial year clearly demonstrated the prevalence of even more diffi cult market conditions. This consequently makes it more diffi cult to issue a concrete forecast for the business development which led MLP – as communicated in February – to use a scenario-based approach.
Under the most probable scenario MLP continues to expect EBIT of around € 65 million in the fi nancial year 2o14. This base scenario assumes that the framework conditions begin to ease. Risk factors for further development include the continuing, and in part very critical, public discussion about a possible further reduction in the guaranteed interest rate for life insurance and pension insurance policies. If, during the course of the year and on account of this situation, clients were to adopt a similarly hesitant approach as seen in 2o13, MLP would expect a lower-based scenario to apply, corresponding to EBIT of at least € 5o million. However, should the environment improve signifi cantly more than currently expected, a higher-based scenario would be possible with EBIT rising up to a maximum of € 75 million.
We will therefore continue to have good fi nancial strength, which we intend to utilise together with our positioning as an independent consulting fi rm in order to further expand our competitive position. Consequently, we continue to expect that the overall development of the MLP Group will be clearly positive.
The equity markets experienced a volatile start to the year 2o14. After reaching an interim high of 9,794 points during the middle of January, the German benchmark index DAX fell over the course of the following weeks by over 6oo points. After comments from the European Central Bank indicating its intention to continue to support the capital markets through all necessary measures, as well as the release of favourable economic data, the German stock market re-covered again. The emerging intensifi cation of the Crimean crisis and associated concerns about western European trade relations with Russia then came to the fore. Furthermore, statements by the president of the US Federal Reserve Bank Janet Yellen concerning a possible end to the US bond purchase programme led to a renewed wave of selling on the German stock market and a signifi cant fall to an interim low of 8,913 points. However, after completion of the referendum in the Crimea, the DAX recovered again and ended the fi rst quarter at 9,556 points.
The MLP AG share experienced a positive start to 2o14. During the middle of January the trading volume picked up, pushing the share price up to an interim high of € 6.o6 by the end of the month. This was followed by a wave of profi t taking accompanied by high volumes which led to a fall in the share price down to € 5.1o. The share then moved within a narrow trading range around this level until the publication of the fi nancial results for 2o13. Thereafter the share price eased again, retreating to € 4.82 by the end of the fi rst quarter.
Further information about the MLP share is available on our Investor Relations page on the Internet www.mlp-ag.com in the section "MLP share".
| 1st quarter 2014 |
1st quarter 2013 |
|
|---|---|---|
| Share price at the beginning of the year | € 5.26 | € 5.08 |
| Share price high | € 6.06 | € 6.64 |
| Share price low | € 4.57 | € 5.05 |
| Share price at the end of the quarter | € 4.82 | € 5.20 |
| Dividend for the previous year | € 0.16* | € 0.32 |
| Market capitalisation (end of reporting period) | € 519,970,697.16 | € 560,964,237.60 |
³ Subject to the approval of the Annual General Meeting on June 5, 2014
The Executive and Supervisory Boards are proposing a dividend of € o.16 per share for approval at the Annual General Meeting (AGM) on June 5, 2o14. This equates to a pay-out ratio of 68 % of net profi t.
The MLP Annual General Meeting will be held on June 5, 2o14 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.
| 1st quarter | 1st quarter | ||
|---|---|---|---|
| All fi gures in €'000 | Notes | 2014 | 2013 |
| Revenue | (6) | 112,821 | 112,320 |
| Other revenue | 6,970 | 4,083 | |
| Total revenue | 119,790 | 116,403 | |
| Commission expenses | (7) | –51,172 | –49,132 |
| Interest expenses | –866 | –1,678 | |
| Personnel expenses | (8) | –27,797 | –26,693 |
| Depreciation and impairments | –3,307 | –2,856 | |
| Other operating expenses | (9) | –32,360 | –32,104 |
| Earnings from investments accounted for using the equity method | 153 | 109 | |
| Earnings before interest and tax (EBIT) | 4,441 | 4,048 | |
| Other interest and similar income | 158 | 248 | |
| Other interest and similar expenses | –199 | –192 | |
| Finance cost | (10) | -40 | 56 |
| Earnings before tax (EBT) | 4,401 | 4,104 | |
| Income taxes | –1,031 | –951 | |
| Net profi t | 3,371 | 3,153 | |
| Of which attributable to | |||
| owners of the parent company | 3,371 | 3,153 | |
| Earnings per share in €1 | |||
| basic/diluted | 0.03 | 0.03 |
1 Basis of calculation: Average number of shares at March 31, 2014: 107,877,738
| 1st quarter | 1st quarter | |
|---|---|---|
| All fi gures in €'000 | 2014 | 2013 |
| Net profi t | 3,371 | 3,153 |
| Gains/losses due to the revaluation of defi ned benefi t obligations | –1,972 | – |
| Deferred taxes on non-reclassifi able gains/losses | 571 | – |
| Non-reclassifi able gains/losses | –1,400 | – |
| Gains/losses from changes in the fair value of available-for-sale securities | 675 | 240 |
| Deferred taxes on non-reclassifi able gains/losses | –210 | 2 |
| Reclassifi able gains/losses | 465 | 242 |
| Other comprehensive income | –935 | 242 |
| Total comprehensive income | 2,435 | 3,396 |
| Of which attributable to | ||
| owners of the parent company | 2,435 | 3,396 |
| Notes | March 31, 2014 | Dec. 31, 2013 |
|---|---|---|
| 156,334 | 155,267 | |
| 66,308 | 65,822 | |
| 7,306 | 7,325 | |
| 2,700 | 2,547 | |
| 1,992 | 1,974 | |
| (11) | 459,849 | 491,570 |
| (11) | 571,326 | 490,110 |
| (12) | 180,746 | 146,082 |
| 25,335 | 20,622 | |
| (13) | 98,159 | 109,164 |
| 35,883 | 46,383 | |
| 1,605,939 | 1,536,865 | |
| All fi gures in €'000 | Notes | March 31, 2014 | Dec. 31, 2013 |
|---|---|---|---|
| Shareholders' equity | (14) | 376,912 | 374,477 |
| Provisions | 90,898 | 85,138 | |
| Deferred tax liabilities | 8,485 | 8,628 | |
| Liabilities due to clients in the banking business | 1,025,805 | 946,484 | |
| Liabilities due to banks in the banking business | 12,529 | 9,924 | |
| Tax liabilities | 5,643 | 5,654 | |
| Other liabilities | (13) | 85,667 | 106,560 |
| Total | 1,605,939 | 1,536,865 | |
| All fi gures in €'000 | 1st quarter 2014 |
1st quarter 2013 |
|---|---|---|
| Cash fl ow from operating activities | 28,698 | 62,958 |
| Cash fl ow from investing activities | –37,179 | –3,597 |
| Cash fl ow from fi nancing activities | – | – |
| Change in cash and cash equivalents | –8,481 | 59,361 |
| Cash and cash equivalents at the end of the period | 52,883 | 120,043 |
The notes on the statement of cash fl ow appear in Note 15.
| Equity attributable to MLP AG shareholders | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| All fi gures in €'000 | Share capital | Capital reserves | Gains/losses from changes in the fair value of available-for-sale securities* |
Revaluation gains/ losses related to defi ned benefi t obligations after |
taxes Retained earnings | Total sharehol ders' equity |
|||
| As of Jan. 1, 2013 | 107,878 | 142,184 | 382 | – | 137,110 | 387,554 | |||
| Effects due to the retrospective application of IAS 19 |
– | – | – | -3,648 | 251 | –3,397 | |||
| As of Jan. 1, 2013 (adjusted) | 107,878 | 142,184 | 382 | -3,648 | 137,361 | 384,157 | |||
| Net profi t | – | – | – | – | 3,153 | 3,153 | |||
| Other comprehensive income | – | – | 242 | – | – | 242 | |||
| Total comprehensive income | – | – | 242 | – | 3,153 | 3,396 | |||
| As of March 31, 2013 | 107,878 | 142,184 | 624 | –3,648 | 140,514 | 387,553 | |||
| As of Jan 1, 2014 | 107,878 | 142,184 | 837 | –4,750 | 128,329 | 374,477 | |||
| Net profi t | – | – | – | – | 3,371 | 3,371 | |||
| Other comprehensive income | – | – | 465 | –1,400 | – | –935 | |||
| Total comprehensive income | – | – | 465 | –1,400 | 3,371 | 2,435 | |||
| As of March 31, 2014 | 107,878 | 142,184 | 1,302 | –6,150 | 131,700 | 376,912 |
* Reclassifi able gains/losses
The consolidated fi nancial 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 fi elds of old-age provision including occupational pension provision, health care, non-life insurance, loans and mortages, wealth management and banking services.
The interim fi nancial report has been prepared in line with the regulations set out in IAS 34 "Interim fi nancial 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 fi nancial statements at December 31, 2o13.
Except for the changes presented in the notes under item (3), the condensed consolidated interim fi nancial statements are based on the accounting and valuation methods as well as the consolidation principles that were applied to the Group fi nancial statements for the fi nancial year 2o13. These are presented in the Group notes of the annual report 2o13 that can be downloaded from the company's website (www.mlp-ag.com).
The interim fi nancial report has been drawn up in euros (€), which is the functional currency of the parent company. Unless otherwise specifi ed, all amounts are stated in thousands of euros (€'ooo). Both single and cumulative fi gures 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 fi nancial statements at December 31, 2o13 except the standards and interpretations to be used for the fi rst time in the fi nancial year 2o14.
In the fi nancial year 2o14 the following new or revised standards are to be used for the fi rst time:
MLP did not anticipate any signifi cant effects on the scope or methods of consolidation from the introduction of IFRS 1o and IFRS 12.
In all other cases there were no signifi cant effects on the representation of the Group's net assets, fi nancial position or results of operations.
As expected, revenue decreased in the fi rst quarter 2o14 following a strong fourth quarter in the fi nancial year 2o13. Nevertheless, in view of the usual seasonal infl uences on business operations, the group expects to achieve higher earnings for the remainder of the fi nancial year than in the fi rst quarter.
There were no signifi cant changes compared to December 31, 2o13.
| Financial services | |||
|---|---|---|---|
| All fi gures in €'000 | 1st quarter 2014 |
1st quarter 2013 |
|
| Revenue | 89,468 | 90,335 | |
| of which total inter-segment revenue | 708 | 1,255 | |
| Other revenue | 4,890 | 3,400 | |
| of which total inter-segment revenue | 509 | 442 | |
| Total revenue | 94,358 | 93,736 | |
| Commission expenses | –37,696 | –36,784 | |
| Interest expenses | –867 | –1,679 | |
| Personnel expenses | –19,012 | –18,587 | |
| Depreciation and impairments | –2,202 | –1,770 | |
| Other operating expenses | –29,914 | –30,115 | |
| Earnings from investments accounted for using the equity method | 153 | 109 | |
| Segment earnings before interest and tax (EBIT) | 4,821 | 4,909 | |
| Other interest and similar income | 72 | 195 | |
| Other interest and similar expenses | –62 | -105 | |
| Finance cost | 10 | 90 | |
| Earnings before tax (EBT) | 4,831 | 4,999 | |
| Income taxes | |||
| Net profi t |
| FERI | Holding | Consolidation | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 1st quarter 2014 |
1st quarter 2013 |
1st quarter 2014 |
1st quarter 2013 |
1st quarter 2014 |
1st quarter 2013 |
1st quarter 2014 |
1st quarter 2013 |
|
| 24,133 | 23,304 | – | – | –781 | –1,319 | 112,821 | 112,320 | |
| 73 | 64 | – | – | –781 | –1,319 | – | – | |
| 848 | 788 | 4,044 | 2,558 | –2,812 | –2,664 | 6,970 | 4,083 | |
| – | – | 2,303 | 2,222 | –2,812 | –2,664 | – | – | |
| 24,981 | 24,092 | 4,044 | 2,558 | –3,593 | –3,983 | 119,790 | 116,403 | |
| –14,091 | –13,460 | – | – | 615 | 1,112 | –51,172 | –49,132 | |
| – | – | – | – | 1 | 1 | –866 | –1,678 | |
| –6,178 | –7,185 | –2,607 | –922 | – | – | –27,797 | –26,693 | |
| –505 | –479 | –599 | –606 | – | – | –3,307 | –2,856 | |
| –2,611 | –2,436 | –2,685 | –2,291 | 2,849 | 2,738 | –32,360 | –32,104 | |
| – | – | – | – | – | – | 153 | 109 | |
| 1,596 | 533 | –1,847 | –1,261 | –128 | –132 | 4,441 | 4,048 | |
| 0 | 1 | 96 | 115 | –10 | –64 | 158 | 248 | |
| –48 | –57 | –144 | –142 | 56 | 112 | –199 | –192 | |
| –48 | –55 | –48 | –27 | 46 | 49 | –40 | 56 | |
| 1,548 | 477 | –1,895 | –1,289 | –82 | –84 | 4,401 | 4,104 | |
| –1,031 | –951 | |||||||
| 3,371 | 3,153 |
| All fi gures in €'000 | 1st quarter 2014 |
1st quarter 2013 |
|---|---|---|
| Old-age provision | 40,132 | 38,943 |
| Wealth management | 32,550 | 31,717 |
| Non-life insurance | 18,809 | 18,222 |
| Health insurance | 11,380 | 13,880 |
| Loans and mortgages | 2,926 | 2,908 |
| Other commission and fees | 1,264 | 747 |
| Commission and fees | 107,061 | 106,417 |
| Interest income | 5,760 | 5,903 |
| Total | 112,821 | 112,320 |
In the period from January 1 to March 31, 2o14 the commission expenses rose from € 49,132 thsd to € 51,172 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 fi nancial services segment. For further explanations please refer to the section "Results Of Operations" of the Group Interim Management Report.
Personnel expenses increased in the period from January 1 to March 31, 2o14 compared to the same period of the previous year from € 26,693 thsd to € 27,797 thsd. For further explanations please refer to the section "Personnel" of the Group Interim Management Report.
At March 31, 2o14, the MLP Group had the following numbers of employees in the strategic fi elds of business:
| March 31, 2014 | March 31, 2013 | |||||
|---|---|---|---|---|---|---|
| of which executive employees |
of which mar ginal part-time employees |
of which executive employees |
of which mar ginal part-time employees |
|||
| Financial serivces |
1,318 | 33 | 93 | 1,290 | 27 | 105 |
| FERI | 231 | 8 | 55 | 251 | 8 | 64 |
| Holding | 8 | 2 | – | 8 | 2 | – |
| Total | 1,557 | 43 | 148 | 1,549 | 37 | 169 |
| 1st quarter | 1st quarter | |
|---|---|---|
| All fi gures in €`000 | 2014 | 2013 |
| IT operations | 11,408 | 11,044 |
| Rental and leasing | 3,408 | 3,336 |
| Administration operations | 2,776 | 2,892 |
| Consultancy | 2,295 | 2,212 |
| Representation and advertising | 1,636 | 1,499 |
| External services – banking business | 1,499 | 2,823 |
| Premiums and fees | 1,107 | 1,307 |
| Training and further education | 1,026 | 1,003 |
| Other external services | 1,008 | 706 |
| Travel expenses | 928 | 720 |
| Entertainment | 923 | 841 |
| Expenses for commercial agents | 653 | 519 |
| Insurance | 644 | 625 |
| Maintenance | 624 | 476 |
| Write-downs and impairments of other receivables and assets | 334 | 257 |
| Other employee-related expenses | 237 | 326 |
| Audit | 227 | 239 |
| Write-downs and impairments of other receivables from clients in the banking business | 195 | 195 |
| Expenses from the disposal of assets | 52 | 67 |
| Sundry other operating expenses | 1,381 | 1,017 |
| Total | 32,360 | 32,104 |
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, offi ce 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. Expenses for representation and advertising include costs incurred due to media presence and client information activities. The item "External services - banking business" mainly contains securities settlement and transaction costs in connection with the MLP credit card. Expenses for commercial agents include costs for former consultants and the training allowance granted for new consultants. Sundry other operating expenses essentially comprise goodwill payments, remuneration for members of the Supervisory Board and vehicle costs.
| All fi gures in €'000 | 1st quarter 2014 |
1st quarter 2013 |
|---|---|---|
| Other interest and similar income | 158 | 248 |
| Interest expenses from fi nancial instruments | –52 | –48 |
| Interest expenses from net obligations for defi ned benefi t plans | –146 | –143 |
| Other interest and similar expenses | –199 | –192 |
| Finance cost | –40 | 56 |
The reduction in the fi nance cost is primarily attributable to lower income from the discounting of provisions.
Receivables from banking business increased from € 981,68o thsd at December 31, 2o13 to € 1,o31,176 thsd at March 31, 2o14. For further explanations please refer to the section "Financial Position" of the Group Interim Management Report.
| All fi gures in €'000 | March 31, 2014 | Dec 31, 2013 |
|---|---|---|
| Held-to-maturity investments | 61,659 | 74,283 |
| Financial assets at fair value through profi t and loss | 5,113 | 5,133 |
| Available-for-sale fi nancial assets | 15,463 | – |
| Debenture and other fi xed income securities | 82,235 | 79,416 |
| Available-for-sale fi nancial assets | 6,605 | 6,948 |
| Financial assets at fair value through profi t and loss | 1,599 | 1,728 |
| Shares and other variable yield securities | 8,204 | 8,677 |
| Fixed and time deposits (loans and receivables) | 87,225 | 55,230 |
| Investments in non-consolidated subsidiaries (available-for-sale fi nancial assets) | 3,082 | 2,759 |
| Total | 180,746 | 146,082 |
The increase in fi nancial investments is primarily attributable to the outfl ow of fi xed-term deposits.
Due to the seasonally stronger year-end business, high receivables from insurance companies as well as high liabilities towards commercial agents at December 31, 2o13 had to be shown which were then balanced out in the fi rst quarter of 2o14. Through the seasonal infl uences a lower amount of receivables and liabilities were built up in the fi rst quarter of 2o14.
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 statutory reserve of € 3,117 thsd (previous year: € 3,117 thsd).
Dividend
The Executive Board and the Supervisory Board of MLP AG propose to the Annual General Meeting on June 5, 2o14 a dividend of € 17,26o thsd (previous year: € 34,521 thsd) for the fi nancial year 2o13. This corresponds to € o.16 per share (previous year: € o.32 per share).
The consolidated statement of cash fl ow shows how cash and cash equivalents have changed in the course of the year as a result of infl ows and outfl ows of funds. As per IAS 7 "Statement of Cash Flows", differentiation is made between cash fl ows from operating activities, from investing activities and from fi nancing activities.
Cash fl ow from operating activities results from cash fl ows that cannot be defi ned as investing or fi nancing activities. It is determined on the basis of net profi t. As part of the indirect determination of cash fl ow, the changes in balance sheet items due to operating activities are adjusted by effects from changes to the scope of consolidation and currency translations. The changes in the respective balance sheet items can therefore only be partially aligned with the corresponding values in the published consolidated balance sheets. For further details, please refer to the "Financial position" section in the management report.
Cash fl ow from investing activities is mainly infl uenced by the investment of monies in fi xedterm deposits as well as by matured term investments.
Cash fl ow from fi nancing 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 fi nancial assets which can be converted into cash at any time and which are only subject to minor value fl uctuation risks.
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 fl ow from operating activities.
Cash and cash equivalents 52,883 120,043
There were no signifi cant changes compared to December 31, 2o13.
The carrying amounts and fair values of fi nancial assets and fi nancial liabilities, including their (hierarchical) tiers, are grouped into fi nancial instrument classes and categories as shown in the following tables:
| March 31, 2014 | |||||||
|---|---|---|---|---|---|---|---|
| Carrying amount |
Fair value | No fi nancial instruments according to IAS32/39 |
|||||
| Carrying amount corresponds |
|||||||
| All fi gures in €'000 | to fair value | Level 1 | Level 2 | Level 3 | Total | ||
| Financial assets measured at fair value | 28,780 | 13,317 | 15,463 | 28,780 | |||
| Fair Value Option | 6,712 | 6,712 | 6,712 | ||||
| Financial investments (share certifi cates and structured bonds) |
6,712 | – | 6,712 | – | – | 6,712 | – |
| Available-for-sale fi nancial assets | 22,068 | 6,605 | 15,463 | 22,068 | |||
| Financial investments (share certifi cates and investment fund shares) |
6,605 | – | 6,605 | – | – | 6,605 | – |
| Financial assets (bonds) | 15,463 | – | – | 15,463 | – | 15,463 | – |
| Financial assets measured at amortised cost | 1,285,435 | 565,914 | 29,311 | 348,746 | 370,183 | 1,314,155 | |
| Loans and receivables | 1,220,694 | 562,832 | 315,603 | 370,183 | 1,248,618 | ||
| Receivables from banking business – clients | 459,849 | 117,385 | – | – | 370,183 | 487,567 | – |
| Receivables from banking business – banks | 571,326 | 255,930 | – | 315,603 | – | 571,533 | – |
| Financial investments (fi xed and time deposits) | 87,225 | 87,225 | – | – | – | 87,225 | – |
| Other receivables and assets | 66,410 | 66,410 | – | – | – | 66,410 | 31,749 |
| Cash and cash equivalents | 35,883 | 35,883 | – | – | – | 35,883 | – |
| Held-to-maturity investments | 61,659 | 29,311 | 33,143 | 62,454 | |||
| Financial assets (bonds) | 61,659 | – | 29,311 | 33,143 | – | 62,454 | – |
| Available-for-sale fi nancial assets | 3,082 | 3,082 | 3,082 | ||||
| Financial assets (investments) | 3,082 | 3,082 | – | – | – | 3,082 | – |
| Financial liabilities measured at amortised cost | 1,093,754 | 1,065,927 | 27,310 | 1,093,237 | |||
| Liabilities due to banking business – clients | 1,025,805 | 1,010,187 | – | 15,445 | – | 1,025,632 | – |
| Liabilities due to banking business – banks | 12,529 | 320 | – | 11,864 | – | 12,184 | – |
| Other liabilities | 55,421 | 55,421 | – | – | – | 55,421 | 30,247 |
| Liabilities due to fi nancial guarantees and credit commitments |
45,363 | 45,363 | – | – | – | 45,363 | – |
| Dec 31, 2013 | |
|---|---|
| Carrying amount |
Fair value | No fi nancial instruments according to IAS32/39 |
|||||
|---|---|---|---|---|---|---|---|
| All fi gures in €'000 | Carrying amount corresponds to fair value |
Level 1 | Level 2 | Level 3 | Total | ||
| Financial assets measured at fair value | 17,091 | 13,809 | 3,282 | 17,091 | |||
| Fair Value Option | 10,143 | 6,861 | 3,282 | 10,143 | |||
| Receivables from banking business – clients | 3,282 | – | – | 3,282 | – | 3,282 | – |
| Financial investments (share certifi cates and structured bonds) |
6,861 | – | 6,861 | – | – | 6,861 | – |
| Available-for-sale fi nancial assets | 6,948 | 6,948 | 6,948 | ||||
| Financial investments (share certifi cates and investment fund shares) |
6,948 | – | 6,948 | – | – | 6,948 | – |
| Financial assets measured at amortised cost | 1,240,270 | 513,243 | 29,981 | 341,634 | 383,836 | 1,268,695 | |
| Loans and receivables | 1,163,228 | 510,484 | 295,594 | 383,836 | 1,189,915 | ||
| Receivables from banking business – clients | 488,288 | 130,764 | – | – | 383,836 | 514,600 | – |
| Receivables from banking business – banks | 490,110 | 194,891 | – | 295,594 | – | 490,485 | – |
| Financial investments (fi xed and time deposits) | 55,230 | 55,230 | – | – | – | 55,230 | – |
| Other receivables and assets | 83,217 | 83,217 | – | – | – | 83,217 | 25,948 |
| Cash and cash equivalents | 46,383 | 46,383 | – | – | – | 46,383 | – |
| Held-to-maturity investments | 74,283 | 29,981 | 46,040 | 76,021 | |||
| Financial assets (bonds) | 74,283 | – | 29,981 | 46,040 | – | 76,021 | – |
| Available-for-sale fi nancial assets | 2,759 | 2,759 | 2,759 | ||||
| Financial assets (investments) | 2,759 | 2,759 | – | – | – | 2,759 | – |
| Financial liabilities measured at fair value | 179 | 179 | 179 | ||||
| Financial instruments held for trading | 179 | 179 | 179 | ||||
| Other liabilities | 179 | – | – | 179 | – | 179 | – |
| Financial liabilities measured at amortised cost | 1,044,282 | 1,019,123 | 24,771 | 1,043,984 | |||
| Liabilities due to banking business – clients | 946,484 | 930,991 | – | 15,318 | – | 946,309 | – |
| Liabilities due to banking business – banks | 9,924 | 269 | – | 9,453 | – | 9,722 | – |
| Other liabilities | 87,863 | 87,863 | – | – | – | 87,863 | 18,517 |
| Liabilities due to fi nancial guarantees and credit commitments |
43,776 | 43,776 | – | – | – | 43,776 | – |
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.
Due to a change in purpose, receivables from clients in the banking business with an amount of € 3,282 thsd. were reclassifi ed from the category "fi nancial assets measured at fair value" to the category "loans and receivables". Due to changes in regulatory requirements bonds with a carrying amount of € 9,55o thsd. and a fair value of € 1o,692 thsd. also were reclassifi ed from the category "held-tomaturity-investments" to the category "available-for-sale-fi nancial assets."
Insofar as there is an active market, which represents the principal market for fi nancial assets and fi nancial 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 fi nancial instruments remain unchanged compared to the previous year and are contained in the Annual Report 2o13.
The table below shows the valuation techniques that were used to determine tier 3 fair values, as well as the signifi cant, non-observable input factors applied:
| Type | Valuation technique | Signifi cant, non-observable input factors |
Relationship between signifi cant, 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 infl ows/outfl ows throughout the remaining term, which are discoun ted 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 fl ows. |
• Adjustment of cash fl ows 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 were to fall (rise) |
On the reporting reference date the bonds to be held to maturity with a carrying amount of € 7,487 thsd. and a fair value of € 7,677 thsd. were transferred from level 1 to level 2 as the quoted in-market prices for these bonds were no longer regularly observable.
On the reporting reference date the bonds to be held to maturity with a carrying amount of € 4,999 thsd and a fair value of € 5,oo4 thsd. were transferred from level 2 to level 1 as the quoted in-market prices for these bonds became regularly observable.
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.
On March 31, 2o14 Muhyddin Suleiman, Executive Board member of MLP AG and of MLP Finanzdienstleistungen AG, with responsibility for sales, resigned from both executive bodies.
There were no signifi cant changes compared to December 31, 2o13.
There were no appreciable events after the balance sheet date affecting the MLP Group's fi nancial or asset situation.
Wiesloch, May 14, 2o14
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, 2o15)
Reinhard Loose (Controlling, IT, Procurement, Accounting, Risk Management, appointed until January 31, 2o19)
Muhyddin Suleiman (Sales, until March 31, 2o14)
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]
20 MLP share, SDAX and DAXsector Financial Services, January to March 2014
MLP key fi gures
21 Key fi gures of the MLP share
November 13, 2o14 Publication of the fi nancial results for the fi rst nine months and the third quarter 2o14.
August 14, 2o14 Publication of the fi nancial results for the fi rst half year and the second quarter 2o14.
Juni 5, 2o14 Annual General Meeting of the MLP AG in Mannheim. MLP AG holds its ordinary Annual General Meeting in Rosengarten in Mannheim.
Mai 15, 2o14 Publication of the fi nancial results for the fi rst quarter 2o14.
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 signifi cantly 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 refl ect 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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