MLP – Company Presentation
Reinhard Loose, CFO Roadshow London
November 19, 2012
Agenda
• MLP at a glance
- Transformation of business model
- Earnings situation / Financial details 9M 2012
- Outlook & Summary
Corporate data at a glance
The MLP Group
- Independent financial services and wealth management consulting company
- Founded in 1971
- € 545.5 million total revenue in 2011
- More than 805,000 private clients
- More than 5,000 corporate clients
- € 20.9 billion assets under management
- 1,517 employees and 2,099 financial consultants
Agenda
• MLP at a glance
• Transformation of business model
- Earnings situation / Financial details 9M 2012
- Outlook & Summary
Independent business model and one-stop provision of lifetime financial solutions
Independent business model is unique in the German Market
Low average age of clients offers potential…
MLP clients by age group
…especially in wealth management
Potential revenue per year and client
Significant steps towards strengthening wealth management business
MLP and Feri cover the whole market
Wealth management
MLP clients benefit from Feri's expertise
Private and corporate clients as well as institutional investors
- Asset management
- Risk overlay
- Wealth consulting and advisory services
- Asset structuring / Controlling
- Asset protection
- Family Office services
- Manager selection
Feri MLP - Wealth Management
Product independent market assessments
- Know-how transfer
- Quality control
- Fund selection
- "Best of" selection
- Sustainability list
- Closed-end funds
Rating Feri direct mandates
Significant revenue growth in wealth management
FY 2005 (Revenue from commissions and fees: € 467.9 million)
FY 2011 (Revenue from commissions and fees: € 498.5 million)
Early recognition of potential in occupational pensions
Studies confirm high level of interest – 2004 and now
2004: Low coverage of occupational pensions
Number of
employees per
company |
Spread of
occupational
pensions within
workforce |
|
|
| 1-4 |
21 % |
|
|
| 5-9 |
25 % |
|
|
10-19
42,4% |
54,1%
31 % |
|
|
| 20-49 |
35 % |
|
|
| 50-99 |
39 % |
|
|
| 100-199 |
43 % |
|
|
| 200-499 |
56 % |
|
|
| 500-999 |
68 % |
|
|
| 1,000 and more |
85 % |
|
|
| Total |
46 % |
|
|
2012: Occupational pensions remain interesting
Source: TNS Infratest Social Research – Supplementary provision in the private sector and in the public service sector 2001 – 2004
Source: Zurich Occupational Pensions-Report 2011/2012
Consistent expansion of the occupational pensions division
2006
Foundation of the competence centre tax advisors /auditors
2008
2004 Foundation of occupational pensions division
Further strengthening of the occupational pensions business – acquisition of TPC
2004
Expansion of the division through personnel strengthening and the acquisition of BERAG
2012
More than 1,200 licensed consultants operating throughout Germany
2010
Introduction of an exclusive industry concept
Significant increase in the proportion of occupational pension business
Occupation pension business as a percentage of the premium sum in the old-age provision area at MLP
Agenda
- MLP at a glance
- Transformation of business model
- Earnings situation / Financial details 9M 2012
- Outlook & Summary
9M: Total revenue of € 355.3 million
Total revenue in 9M
[in € million]
Considerable increase in wealth management
Revenue: commissions and fees
[in € million]
|
Q3 2011 |
Q3 2012 |
Δ
in % |
9M 2011 |
9M 2012 |
Δ
in % |
| Old-age provision |
62.7 |
54.9 |
-12 |
169.6 |
152.3 |
-10 |
| Wealth management |
19.0 |
34.5 |
82 |
59.2 |
83.7 |
41 |
| Health insurance |
15.1 |
13.7 |
-9 |
56.8 |
45.5 |
-20 |
| Non-life insurance |
4.2 |
4.1 |
-2 |
25.0 |
26.7 |
7 |
| Loans and mortgages* |
3.2 |
3.3 |
3 |
9.3 |
8.8 |
-6 |
| Other commissions and fees |
1.1 |
0.8 |
-27 |
2.9 |
2.6 |
-8 |
|
|
|
|
|
|
|
*Excluding MLP Hyp
Difficult environment in old-age provision
Average of target/actual expenses for old-age provision per months
Source: Postbank survey old-age provision in Germany 2012/2013
MLP benefits from its holistic approach
Revenue from commissions and fees: 9M 2012: € 319.6 million (€ 322.8 million)
Efficiency program still on track
Development of fixed costs*
Earnings situation further improved
Income statement
[in € million]
|
Q3 2011 |
Q3 2012 |
9M 2011 |
9M 2012 |
| Total revenue |
116.3 |
121.5 |
356.5 |
355.3 |
| EBIT |
2.9 |
11.1 |
4.6 |
26.7 |
| Finance cost |
0.2 |
-0.1 |
-0.5 |
0.2 |
| EBT |
3.0 |
11.0 |
4.2 |
26.9 |
| Taxes |
-1.4 |
-2.7 |
-2.8 |
-8.3 |
| Group net profit |
1.7 |
8.3 |
2.0 |
18.6 |
EPS in €
(diluted) |
0.02 |
0.08 |
0.02 |
0.17 |
- No one-offs in 9M 2012 (9M 2011: € 14.1 million)
- Efficiency program continues to bear fruit
- Q3: tax rate down to 25 % as expected
Agenda
- MLP at a glance
- Transformation of business model
- Earnings situation / Financial details 9M 2012
- Outlook & Summary
Reduction in fixed costs to around € 249 million
Outlook 2012
Development of fixed costs*
[in € million]
*Personnel, D&A, other operating expenses **After adjustment for one-offs
Development of revenue
MLP expects the weighting of the fullyear revenue development to differ slightly from its expectations at the start of the year:
- Stronger growth in wealth management than previously anticipated
- Old-age provision at, or slightly above the previous year's level
- Slight decrease in revenues from health insurance
Goal 2012: Operating EBIT margin of 15 %
MLP Group
EBIT margin
[in %]
*After adjustment for one-offs **Before acquisitions and special effects
Summary
- MLP benefits from its holistic approach
- Targeted strengthening of the wealth management and occupational pensions business areas
- Greater diversification in consulting leads to more recurring revenues
- Efficiency program fully on track, realization of outstanding savings in Q4
- Continuingly challenging market environment
- Upcoming weeks will significantly influence the year-end result
- Further pick-up expected in old-age provision and health insurance, but risks remain due to challenging environment
Guidance: increase in operating EBIT margin to 15 % is still achievable
Contact
MLP Investor Relations Alte Heerstr. 40 69168 Wiesloch Germany
- Jan Berg, Head of Corporate Communications Tel.: +49 (0) 6222 308 4595
- Andreas Herzog, Senior Manager Investor Relations and Financial Communications Tel.: +49 (0) 6222 308 2272
[email protected] www.mlp-ag.com