Quarterly Report • May 10, 2012
Quarterly Report
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Interim Group Report for the fi rst quarter 2012
| All fi gures in € million | 1st quarter 2012 | 1st quarter 2011 | Change |
|---|---|---|---|
| Continuing operations | |||
| Total revenue | 121.5 | 130.8 | – 7.1 % |
| Revenue | 116.3 | 125.5 | – 7.3 % |
| Other revenue | 5.2 | 5.3 | – 1.9 % |
| Operating EBIT (before one-off exceptional costs) Earnings before interest and tax (EBIT) |
12.4 12.4 |
11.8 8.6 |
5.1 % 44.2 % |
| EBIT margin (%) | 10.2 % | 6.6 % | – |
| Earnings from continuing operations |
9.4 | 4.6 | >100 % |
| Earnings per share (diluted) in € | 0.09 | 0.04 | >100 % |
| MLP Group | |||
| Net profi t (total) | 9.4 | 4.7 | 100 % |
| Earnings per share (diluted) in € | 0.09 | 0.04 | >100 % |
| Cash fl ow from operating activities | 36.1 | 48.9 | – 26.2 % |
| Capital expenditure | 4.3 | 0.6 | >100 % |
| Shareholders' equity | 409.9 | 399.31 | 2.7 % |
| Equity ratio | 28.0 % | 26.8 %1 | – |
| Balance sheet total | 1,463.0 | 1,487.81 | – 1.7 % |
| Clients2 | 799,100 | 794,5001 | 0.6 % |
| Consultants 2 | 2,121 | 2,1321 | – 0.5 % |
| Branch offi ces 2 | 175 | 1781 | – 1.7 % |
| Employees | 1,515 | 1,626 | – 6.8 % |
| Arranged new business 2 | |||
| Old-age provisions (premium sum in € billion) | 0.7 | 0.9 | – 22.2 % |
| Loans and mortgages | 330.0 | 370.0 | – 10.8 % |
| Assets under management in € billion 3 | 20.5 | 20.21 | 1.5 % |
[Table 01]
1 As of December 31, 2011. 2 Continuing operations.
3 Calculated according to the method of the German Association of Investment and Asset Management (BVI).
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 of insurance companies, banks and investment fi rms. The MLP Group manages total assets of more than € 2o.5 billion and supports more than 799,ooo private and more than 5,ooo corporate clients respectively employers. The fi nancial services and wealth management consulting company was founded in 1971 and holds a full banking licence.
The concept of the founders, which still remains the basis of the current business model, is to provide long-term consulting for academics and other discerning clients in the fi elds of old-age provision, wealth management, health insurance, non-life insurance, loans and mortgages and banking. Private individuals with assets above € 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 and the joint venture HEUBECK-FERI Pension Asset Consulting GmbH, MLP also provides companies with independent consulting and conceptual services in all issues pertaining to occupational pension schemes and remuneration as well as asset and risk management.
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.
Despite the negative infl uences from abroad, the German economy continued to develop relatively robustly until the end of 2o11. According to calculations by the Federal Statistics Offi ce, the price-adjusted gross domestic product (GDP) increased by 1.5 % in the fourth quarter of 2o11 compared to the fourth quarter of 2o1o. However, compared to the third quarter in 2o11, GDP fell by o.2 %. This downward tendency at the end of the year was broken at the beginning of 2o12: provisional estimates suggest that in the fi rst quarter of 2o12 the German economy grew slightly compared to the previous quarter. The DIW (German Institute for Economic Research; Deutsches Institut für Wirtschaftsforschung) currently expects a fi rst-quarter increase in the gross domestic product of o.1 % compared to the previous quarter. The labour market is also proving to be resilient – employment in Germany at the winter half-year stood at a historical record high and the number of people unemployed was the lowest fi gure recorded since German reunifi cation. According to fi gures released by the Federal Employment Agency, the unemployment rate at the end of the fi rst quarter of 2o12 stood at 7.2 %, compared to 7.6 % in the previous year. Nevertheless, many citizens remain reserved in their outlook towards the future due to the recent fi nancial crisis and the continuing debate surrounding the fi nancial stability of some European states.
In the fi rst quarter, the prevailing economic situation did not exert any signifi cant infl uence on the MLP Group which generates almost 1oo % of its total revenues in Germany. As anticipated, MLP recorded a decrease in health insurance revenues in the fi rst quarter following a strong quarter in the same period of the previous year. Revenues in old-age provision and in loans and mortgages also fell slightly compared to the same period in the previous year, whereas wealth management remained at the level of the previous year. In non-life insurance, MLP achieved higher revenues.
[Figure 01]
The old-age provision market in Germany continues to be influenced by the discussions concerning the effects of the debt crisis in Europe. For example, 5o % of the population fear that the Eurozone crisis will negatively affect their pension or their old-age provision (see diagram). The old-age provision environment thus remains challenging – although the low point in the market has now probably passed. Following a strong fi nal quarter in 2o11, the premium sum at MLP in the period from January to March 2o12 fell from € o.9 billion to € o.7 billion.
Occupational pensions are playing an increasingly important role within MLP's old-age provision business and accounted for 13 % of the premium sum (Full year 2o11: 13 %). In cooperation with our subsidiary TPC (TPC THE PENSION CONSULTANCY GmbH) we successfully maintained our business at the level of the previous year.
The continuing general uncertainty on the part of state healthcare system insurees with respect to the future scope of treatment and services continues to fuel demand for full private health insurance or supplementary healthcare cover. Furthermore, insurees are conscious of the problems arising from the burden placed on the healthcare system by an increasingly-ageing society – and how they can mitigate these problems through private provision (see diagram). In addition, the market for private health insurance in Germany is also benefi ting from changes to the legal framework conditions that came into effect on 1st January 2o11. This legislation enables employees with state health insurance to switch to full private health insurance after just once exceeding the so-called annual income threshold of € 5o,85o (2o12). Insurees were previously required to exceed the threshold for three years .
Despite generally favourable framework conditions, MLP recorded, as anticipated, a signifi cant revenue decrease in this consulting area in the fi rst quarter. Revenue fell to € 19.1 million (Q1 2o11: € 28.o million). The reason for this was the strong quarter in the same period of the previous year that was characterized by a catch-up effect due to the easing of the aforementioned restrictions regarding a switch to private health insurance.
The downward tendency within the German investment fund industry that was evident last year slightly improved at the beginning of 2o12 thanks to positive developments on the capital markets. Infl ows into mutual funds amounted to € 2.2 billion in the fi rst quarter. The largest increases were recorded in fi xed-income funds (see diagram). However, new business was once again dominated by institutional investors. The high level of investment willingness on the part of institutional investors led to infl ows into special funds amounting to € 14.3 billion. Noninvestment fund assets increased by € o.5 billion. At the reference date on March 31, 2o12 fund assets managed by German investment fund companies had risen by 4.7 % to € 1,866.2 billion. (December 31, 2o11: € 1,783.1 billion).
At MLP, managed client assets rose from € 2o.2 billion on December 31, 2o11 to € 2o.5 billion on March 31, 2o12.
[Figure 04]
The current competitive situation has not fundamentally changed in the fi rst quarter of 2o12 and the industry still has a heterogeneous structure. There are numerous consultants and intermediaries – from banks and insurance companies through to independent fi nancial brokers. They employ different business models, which among other aspects, are differentiated by the breadth of their product portfolio and the consulting approach they adopt as well as by the quality of the consulting provided. Clients therefore experience very widely different levels of quality within the industry. In private client consulting MLP primarily competes against the banks.
Market regulation is of particular relevance to the future competitive situation. In this respect the German government made two important decisions last year which were designed to further improve the level of investor protection, the impact of which will be felt during the coming months. Firstly, this concerns the Investor Protection Act ("Anlegerschutz- und Funktionsverbesserungsgesetz") which includes new training standards, a register for all investment advisors as well as so-called product information sheets. These regulations apply to securities service providers such as MLP.
Secondly, the revision of the fi nancial investment brokerage and asset investment legislation ("Finanzanlagenvermittler- und Vermögensanlagerecht") which applies to the hitherto largely unregulated section of the market not covered by the banking supervisory authority. Among other aspects, this legislation also specifi es new training requirements for the brokerage of open and closed funds by intermediaries and largely imposes information, consulting and documentation obligations on this market sector which already apply for banks.
During the coming years additional legislation will further tighten the requirements for all market participants which will lead to an acceleration of market consolidation (see page 91 et seq. of the Annual Report 2o11).
Total revenues in the period from January to March decreased by 7.1 % to € 121.5 million (Q1 2o11: € 13o.8 million). Revenues from commissions and fees accounted for the largest portion of this fi gure and amounted to € 1o8.9 million (€ 118.6 million). Interest income rose to € 7.3 million (€ 6.9 million); other revenues stood at € 5.2 million and were thus at the level of the previous year (€ 5.3 million) .
The breakdown into the individual consulting areas reveals that the decrease in total revenues was primarily due to strong private health insurance revenues in the corresponding quarter of the previous year. Legislation changes which came into effect from 1st January 2o11 enabled employees to more easily switch to private health insurance and led to a catch-up effect in the fi rst quarter of 2o11. Revenues from health insurance amounting to € 19.1 million in the fi rst quarter of 2o12 were thus below the previous year (€ 28.o million) but still signifi cantly above the fi rst quarters of 2oo9 and 2o1o (Q1 2oo9: € 13.7 million, Q1 2o1o: € 12.9 million). Following the strong fi nal quarter in 2o11, revenues in old-age provision fell by 3.2 % to € 48.9 million (€ 5o.5 million). In wealth management, revenues amounted to € 19.2 million and thus remained at the level of the previous year (€ 19.3 million). Non- life insurance grew by 6.5 % to € 17.9 million (€ 16.8 million). Loans and mortgage revenues decreased to € 2.9 million (€ 3.1 million); additional earnings from the joint venture company MLP Hyp amounted to € o.2 million (€ o.2 million).
In the fi rst quarter of 2o12 the largely variable commission expenses decreased from € 48.3 million to € 43.o million which was mainly due to the revenue development. Interest expenses in the same period reduced from € 2.2 million to € 2.1 million.
As a consequence of the early initiated effi ciency program, the fi xed costs (defi ned as the sum of personnel expenses, depreciation and amortization as well as other operating expenses) decreased by € 7.9 million compared to the same period in the previous year. Here, personnel expenses fell from € 29.9 million to € 26.o million. Other operating expenses reduced by € 4.o million to € 34.5 million (€ 38.5 million). After taking one-off exceptional costs of € 3.2 million into consideration which were incurred in the same quarter of the previous year, the achieved reduction in operating costs thus far amounts to € 4.7 million compared to the previous year.
In the fi rst quarter 2o12, EBIT (earnings before interest and tax) increased by 44.2 % from € 8.6 million to € 12.4 million. As Q1 2o11 included one-off exceptional costs of € 3.2 million, the increase in operating EBIT (EBIT before one-off exceptional costs) amounted to 5.1 %. The fi nancial result improved from € –1.o million to € o.2 million. This increase was primarily attributable to the absence of previously paid dividends to the former shareholders of Feri AG following MLP's scheduled acquisition of the remaining shares in April 2o11. On the other hand, there was no recurrence of expenses and revenues from interest swaps which had a positive effect on the fi nancial result in the previous year. The net profi t from continuing operations rose to € 9.4 million (€ 4.6 million) .
| in € million | 1st quarter 2012 | 1st quarter 2011 | Change |
|---|---|---|---|
| Total revenue | 121.5 | 130.8 | – 7.1 % |
| EBIT | 12.4 | 8.6 | 44.2 % |
| EBIT margin | 10.2 % | 6.6 % | – |
| Finance costs | 0.2 | – 1.0 | – |
| EBT | 12.6 | 7.6 | 65.8 % |
| EBT margin | 10.4 % | 5.8 % | – |
| Income tax | – 3.2 | – 2.9 | 10.3 % |
| Net profi t (continuing operations) | 9.4 | 4.6 | >100.0 % |
| Net margin | 7.7 % | 3.5 % | – |
[Table 02]
At the start of the fi nancial year 2o12 we provided a quantitative forecast for the operating margin (before one-off costs and acquisitions) referring to EBIT (earnings before interest and tax) of 15 % in 2o12 as well as a qualitative forecast for the revenue development (see page 85 et seq. of the Annual Report 2o11). Accordingly, in 2o12 we expect to achieve moderate growth in old-age provision and in health insurance. In wealth management, we expect stronger growth – not least, due to excellent potential at our subsidiary Feri. Following the results of the fi rst quarter we see no reason to change this forecast. Revenues from commissions and fees in wealth management remained at the level of the previous year. Although health insurance revenues decreased by around 32 % compared to the same period in the previous year, they nevertheless amounted to € 19.1 million – and were thus signifi cantly above the fi rst quarters in 2oo9 and 2o1o – as well as being within the framework of our expectations. Following a strong fi nal quarter in 2o11, revenues in old-age provision in Q1 2o12 decreased as anticipated by around 3 % to € 48.9 million. As already communicated in February, revenue development remains somewhat uncertain due to the continuingly challenging market environment.
The development of expenses was also as planned. MLP seeks to reduce its fi xed costs for the fi nancial year 2o12 to € 249 million – a fi gure which is some € 3o million less than 2o1o and € 24 million less than 2o11. Already in the fi rst quarter of 2o12 we achieved a signifi cant portion of these cost savings (see section on "Development of expenses", p. 1o) and in addition all the necessary measures were initiated.
In the fi rst quarter, Assets under Management – supported by successful business development at the MLP subsidiary Feri – continued to rise and amounted to € 2o.5 billion at March 31, 2o12 (December 31, 2o11: € 2o.2 billion). Following the strong fi nal quarter in 2o11, the premium sum in old-age provision amounted to € o.7 billion (€ o.9 billion) and was thus below the previous year. Occupational pensions accounted for 13 % of this fi gure (Full year 2o11: 13 %) .
From January to March, MLP welcomed 6,5oo new clients (7,8oo). The total number of clients rose to 799,1oo (December 31, 2o11: 794,5oo). The number of consultants decreased slightly to 2,121 (December 31, 2o11: 2,132).
At the balance sheet reference date on March 31, 2o12, the total assets of the MLP Group amounted to € 1,463.o million, corresponding to a decrease of 1.7 % compared to the total net assets at December 31, 2o11 which then amounted to € 1,487.8 million. The main infl uencing factor on this change on the asset side of the balance sheet was the usual seasonal fall in other accounts receivable and other assets from € 143.6 million to € 1o5.3 million. This item mainly consists of receivables from insurance companies for whom we have brokered insurance contracts. Due to the usual strong year-end business these rise signifi cantly at the end of the year and then fall again during the course of the following fi nancial year.
| in € million | March 31, 2012 | Dec. 31, 2011 | Change |
|---|---|---|---|
| Intangible assets | 139.5 | 140.3 | – 0.6 % |
| Property, plant and equipment | 73.1 | 71.6 | 2.1 % |
| Investment property | 7.5 | 7.5 | 0.0 % |
| Shares accounted for using the equity method | 3.0 | 2.9 | 3.4 % |
| Deferred tax assets | 5.6 | 4.7 | 19.1 % |
| Receivables from clients in the banking business | 374.7 | 360.1 | 4.1 % |
| Receivables from banks in the banking business | 449.1 | 487.6 | – 7.9 % |
| Financial investments | 263.9 | 232.0 | 13.8 % |
| Tax refund claims | 6.9 | 6.1 | 13.1 % |
| Other accounts receivable and other assets | 105.3 | 143.6 | – 26.7 % |
| Cash and cash equivalents | 34.5 | 31.4 | 9.9 % |
| Total | 1,463.0 | 1,487.8 | – 1.7 % |
[Table 03]
On the liabilities side of the balance sheet, equity capital increased from € 399.3 million to € 4o9.9 million and was largely due to the profi t from the reporting period. The equity capital position of MLP remains very good with an equity ratio of 28.o % (December 31, 2o11: 26.8 %).
Changes were primarily recorded in the item "Other liabilities" which decreased from € 147.6 million to € 9o.7 million. This was partly due to lower commission claims by our consultants. Due to our usually strong year end business, the commission claims by the consultants rise sharply at the balance sheet reference date on December 31, but then fall again in the following quarters.
The development of our deposit business is shown in the liabilities towards clients and banks. The liabilities towards clients from the bank business increased from € 827.4 million to € 841.1 million. This mainly concerns deposits in current and instant access accounts as well as deposits in connection with our credit card business .
| in € million | March 31, 2012 | Dec. 31, 2011 | Change |
|---|---|---|---|
| Shareholders' equity | 409.9 | 399.3 | 2.7 % |
| Provisions | 95.5 | 87.8 | 8.8 % |
| Deferred tax liabilities | 9.5 | 9.4 | 1.1 % |
| Liabilities due to clients in the banking business | 841.1 | 827.4 | 1.7 % |
| Liabilities due to banks in the banking business | 13.8 | 14.5 | – 4.8 % |
| Tax liabilities | 2.5 | 1.6 | 56.3 % |
| Other liabilities | 90.7 | 147.6 | – 38.6 % |
| Total | 1,463.0 | 1,487.8 | – 1.7 % |
[Table 04]
Cash fl ow from operating activities in the continuing operations decreased to € 36.1 million compared to € 49.o million in the same period of the previous year. Here, main payments result from the deposit business with our clients and from the investment of these monies.
The change in cash fl ow from investment activities in the continuing operations from € 27.o million to € –19.4 million is primarily due to the investment of fi xed-term deposits with a term to maturity of more than three months amounting to a net fi gure of € 15.o million, whereas in the comparative period, fi xed term deposits amounting to € 4o.o million were not reinvested.
Overall, at the end of the fi rst three months of 2o12 the Group's liquid assets stood at around € 184 million. The liquidity situation therefore remains very good. The Group has adequate liquidity reserves available. In addition to the liquid funds, MLP also has access to free credit lines .
| 1st quarter 2012 | 1st quarter 2011 |
|---|---|
| 51.4 | 125.5 |
| 36.1 | 49.0 |
| – 19.4 | 27.0 |
| – | 0.0 |
| 16.8 | 75.9 |
| – | –0.1 |
| 1.4 | – |
| 69.5 | 201.3 |
[Table 05]
No capital measures were undertaken during the period under review.
In the period from January to March 2o12 MLP invested € 4.3 million which was € 3.7 million more than the corresponding fi gure for the same period in the previous year. Around 93 % of this fi gure was allocated to the fi nancial services sector – mainly for IT infrastructure. All investments were fi nanced from current cash fl ows.
In the fi rst quarter of 2o12 total revenues decreased as anticipated, whereas EBIT (earnings before interest and tax) rose signifi cantly. In this respect, MLP benefi ted from a lower cost base, and the reduction in fi xed costs that MLP is striving to achieve for the full year was already partially realized in the fi rst quarter. After conclusion of the fi rst three months, MLP still has a very good equity capital base and liquidity. Overall, we are satisfi ed with the business development and regard the economic position of the Group as positive – both at the end of the period under review as well as at the time of the preparation of the interim report.
The number of employees reduced during the period under review and was in line with the announced framework. At the reference date on March 31, 2o12 the Group had a total of 1,515 employees, 111 less than at the end of the same period in the previous year.
The reduction compared to March 31, 2o11 is attributable to two factors. Firstly, during the past 12 months the number of employees in the branches as well as the number of marginal part-time employees and assistants fell slightly. Secondly, the reduction is due to the personnel measures at the company headquarters in Wiesloch announced in April 2o11. These were realized – as communicated – partially through active personnel reductions, some of which were not completed until the fi rst quarter 2o12 due to contractual obligations. In addition, we have also utilized the natural employee turnover and not recruited for some of the positions within the company after they became vacant.
| March 31, 2012 | March 31, 2011 | |
|---|---|---|
| Financial Services | 1,256 | 1,367 |
| Feri | 250 | 247 |
| Holding | 9 | 12 |
| Total | 1,515 | 1,626 |
[Table 06]
In the fi rst quarter MLP continued its image campaign which was rolled out in 2o11. Based on the message "Those who make their career their life's work, should expect the same passion from their fi nancial advisor", the initiative focuses on the requirements of academics with respect to high quality fi nancial consulting. The campaign strengthens the position of MLP as a reliable partner and specialist in fi nancial planning, serving the needs of academics. The Annual Report published in March also embraces the spirit of this image campaign.
During the period under review the MLP client magazine "Forum" was shortlisted for the "Best of Corporate Publishing" competition, the largest pan-European competition for corporate publications. In addition, MLP is again acting as a co-sponsor of the Heidelberg Spring Festival.
The provision of support for students also played an important role for MLP during the period under review. At the beginning of March MLP awarded international grants to 19 students within the framework of the "Join the best" initiative. Furthermore, in mid-April the fourth application phase commenced for "Medical Excellence", the support initiative specifi cally for medical students. In addition, on April 3o the fi rst application phase ended for the "MINT Excellence" initiative which supports students of mathematics, information science, natural sciences and technological engineering. This is an initiative that was instigated by the Manfred Lautenschläger Foundation – a foundation of the company founder – but which is managed by MLP .
On March 2o, 2o12 the Supervisory Board of MLP AG unanimously extended the existing service contract of the Chief Executive Offi cer Dr. Uwe Schroeder-Wildberg by fi ve years to December 31, 2o17.
On January 2, 2o12 the renaming of Feri AG was implemented. Previous to that date, the company had operated under the name Feri Finance AG für Finanzplanung und Research. Feri AG heads a corporate group of companies for investment consulting and management, economic research and ratings and is a wholly-owned subsidiary of MLP AG.
Following a decision taken on March 22, 2o12 and with effect from January 1, 2o12, the previously for minority reasons non-consolidated Luxembourg-based subsidiaries Family Private Fund Management Company S.à.r.l., Ferrum Fund Management Company S.à.r.l., Ferrum Pension Management S.à.r.l. and Private Trust Management Company S.à.r.l. were retrospectively amalgamated with the since 2o11 fully consolidated Feri Trust (Luxemburg) S.A. (up to March 22, 2o12: Institutional Trust Management Company S.à.r.l.).
There were no further changes within the corporate structure and the executive bodies of the MLP Group. A detailed description of the corporate structure and the executive bodies is contained on pages 33 et seq. of our Annual Report 2o11 .
The MLP Group structures its business into the following operating segments:
A detailed description of the individual segments is contained on pages 56 et seq. of the Annual Report 2o11.
In the fi rst quarter of 2o12 total revenues in the fi nancial services segment contracted compared to the same period in the previous year, falling from € 121.3 million to € 11o.4 million. This decrease was mainly due to lower revenues in old-age provision and especially the health insurance consulting areas (see section on "Results of operations"), whereas the non-life insurance consulting area generated higher revenues.
Despite lower total revenues, earnings grew signifi cantly – a development which is primarily attributable to the cost reductions arising from the investment and effi ciency program. Personnel expenses and other operating expenses fell considerably. EBIT (earnings before interest and tax) in the fi rst quarter thus amounted to € 14.1 million compared to € 11.5 million in the same period of the previous year. The fi nancial result improved to € –o.1 million (€ –o.3 million). This led to improved EBT (earnings before tax) which climbed from € 11.1 million to € 14.o million.
In the fi rst quarter of 2o12 the total revenues of the Feri segment rose by 34 % to € 12.6 million (€ 9.4 million) due to increases in both revenue and other revenue. EBIT improved to € o.4 million (€ –o.4 million). Higher costs from commission expenses as a result of higher revenues reduced the earnings in this segment but lower personnel costs made a positive contribution. EBT rose from € –o.4 to € o.4 million .
In the Holding segment total revenues fell in the fi rst quarter of 2o12 from € 3.o million to € 2.5 million. The reduction in personnel expenses more than compensated for the rise in other operating expenses, thus leading to improved EBIT which improved from € –2.5 million to € –2.1 million. Due to a reduction in other interest and similar revenues the fi nancial result in the same period decreased to € o.3 million (€ 1.6 million). The fi nancial result also takes account of the dividend distribution of our subsidiary Feri AG as well as partial forwarding of the dividend to the remaining former shareholders of Feri AG in the fi nancial year 2o11. Following the acquisition of the remaining Feri shares, no further dividend payments will be made to the former shareholders as of 2o12. In addition, the previous year included an interest result from swaps of € o.7 million. EBT decreased correspondingly from € –o.9 million to € –1.8 million.
There were no signifi cant changes in the risk 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. The MLP Group has adequate liquid funds. At the reporting date on March 3o, 2o12, our core capital ratio stood at 19.o % and continued to far exceed the 8 % level prescribed by the supervisory body. At the present time, no existence threatening risks to the MLP Group have been identifi ed.
A detailed presentation of our corporate risks as well as a detailed description of our risk management are contained in our risk and disclosure report on pages 65 to 85 of the Annual Report 2o11.
Related party disclosures are contained in the notes of the Annual Report 2o11, page 2oo et seq.
According to information issued by the Federal Government and subsequently confi rmed at the end of April, the German economy is expected to grow by o.7 % in 2o12 and by 1.6 % in the following year. Rising labour costs and the cooling economy in China are cited as dampeners to growth. Other forecasts portray a more optimistic picture. In this respect, the experts at the German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung; DIW) predict growth of 1.o % in 2o12 and 2.4 % in 2o13. In their estimates, they expect the German domestic economy to play a central role. The German government is forecasting an unemployment rate of 6.7 % for this year. According to government estimates, disposable incomes in 2o12 will rise by 2.9 %, and for next year the Institute for Macroeconomics (Institut für Makroökonomie) is forecasting a further increase of o.8 %.
MLP anticipates that the academic private target client group can benefi t from the economic framework data and will maintain its relatively favourable overall fi nancial position. At the same time, particularly the high earning target client group individuals are aware of the need to invest in private provision to close the gap between their working salary and their expected state pension. However, the evident hesitancy to commit to longer-term investments is likely to persist – not least due to the discussion and debate surrounding the European debt crisis.
A detailed description of the framework conditions for our most important markets – old-age provision, health insurance and wealth management – is contained in our Annual report 2o11 on pages 85 et seq. During the fi rst three months of the fi nancial year 2o12 there were no signifi cant changes to the overall situation.
Private old-age provision is an important topic for German society. An increasing number of citizens are concerned about their ability to maintain a decent standard of living in their oldage. In addition, and in response to the demographic development, several reforms have been introduced that have led to signifi cant reductions in the statutory pension scheme – which, in turn, considerably increase the requirement for private provision measures. At the same time, state subsidies for private and occupational old-age provision have been signifi cantly expanded. In order to address these complex topics, high quality consulting will be necessary, from which MLP should be able to markedly benefi t during the coming years. However, in the short term, the market for old-age provision remains characterized by hesitancy on the part of many consumers with respect to longer-term investments – not least due to the continuing discussion surrounding the debt crisis in Europe.
In the health provision business area the trend towards private health and long-term care insurance remains unbroken. The rising costs within the healthcare system make further reforms in the medium to long term unavoidable. We therefore anticipate that more and more people will wish to switch from the state healthcare system to private health insurance – at least in the form of private supplementary health cover. Accordingly, for 2o12 we expect to assist a large number of clients to choose a suitable full health insurance or supplementary insurance policy to cover their needs. The capping of acquisition commissions and the extension of the cancellation liability period of intermediaries in private health insurance since April 1, 2o12 also infl uence the health provision consulting area. These measures will further alter the market landscape and make business signifi cantly more diffi cult for some sections of the industry. However, for MLP as a client-oriented provider with very low cancellation rates and comprehensive existing client care operations, the effects of such measures are, from a current perspective, manageable. Compared to the current situation, we expect that trailing commissions will play a greater role.
We also see further growth potential in the wealth management area – both in the MLP private client market as well as at Feri. According to the World Wealth Report published by Merrill Lynch Global Wealth Management and Capgemini in October 2o11, Germany is home to over 924,ooo millionaires, 7.2 % more than the previous year. Furthermore, the fi nancial industry expects large account and portfolio reallocations to take place in the coming years – due to generation changes as well as to the fact that Swiss banks have lost some of their appeal to large German investors as a result of the tax agreement with Germany. Changes to the consulting legislation will also play an important role in the market development. Following the numerous steps taken by the legislator during recent years in order to improve the level of professionalism in the market, new measures were passed in 2o11 such as the Investor Protection Act ("Anlegerschutz- und Funktionsverbesserungsgesetz") and the revision of fi nancial investment brokerage and asset investment legislation ("Gesetz zur Novellierung des Finanzvermittler- und Vermögensanlagerechts"). As a quality-oriented provider MLP will benefi t from these measures whilst the consolidation in the market accelerates.
In the fi rst quarter of 2o12 MLP once again highlighted its client orientation by further increasing the degree of transparency in wealth management. Accordingly, MLP will pass on all retrocessions – trailing commissions from capital investment companies – to its clients. Overall, MLP offers one of the most attractive price-performance ratios on the market.
In the fi rst three months of 2o12 MLP also emphasized its quality advantage over the market with respect to training: In January the Financial Planning Standards Board Deutschland e. V. accredited MLP as a provider of training for the qualifi cation of Certifi ed Financial Planner (CFP). The CFP is the highest internationally-recognized training standard for fi nancial consultants. In gaining this status, MLP Corporate University has now become one of just three accredited training institutes in Germany – the other two being the European Business School in Oestrich-Winkel and the Frankfurt School of Finance & Management.
For 2o12, MLP continues to expect to achieve a sustainable reduction in annual fi xed costs to around € 249 million – which is some € 3o million less than in the fi nancial year 2o1o. In the fi rst quarter alone, MLP decreased operating fi xed costs by € 4.7 million and is thus fully on track with its effi ciency program.
Following completion of the fi rst quarter we see no reason to amend our qualitative revenue forecast that we published in the Annual Report 2o11. Accordingly, we expect to achieve moderate revenue growth in old-age provision and health insurance in 2o12. In wealth management we anticipate – not least due to the excellent areas of potential at our subsidiary Feri – stronger growth. However, the further development remains somewhat uncertain in all consulting areas due to the continuingly challenging market environment.
Overall, we confi rm our goal to achieve an operating margin in 2o12 (before one-off costs and acquisitions) with respect to EBIT (earnings before interest and tax) of 15 %.
Signifi cant changes to the opportunities resulting from the framework conditions, corporatestrategic opportunities or business opportunities did not occur during the period under review. Relevant detailed explanations are contained in the Annual Report 2o11 on page 96 et seq .
There were no notable events subsequent to the reporting date which may affect the MLP Group's net assets, fi nancial position or results of operations.
The development of global stock markets in the fi rst quarter 2o12 was generally positive. During the period under review, the US-American Dow Jones Industrial Average bench mark index rose by 8.1 % and closed at 13,212 points on March 3o, 2o12. Despite the continuing discussion and debate about the debt situation of certain European countries and about future relations with Iran as one of the largest global oil exporters, the German bench mark index DAX also posted share price gains in the fi rst quarter 2o12. The index closed at 6,947 points at the end of March, 13.3 % above its level at the start of January 2o12. The German small cap index SDAX achieved an even greater increase, rising by 16.6 % since the beginning of the year and closing at 5,221 points at the end of March. The DAXsector Financial Services index for fi nancial services companies in Germany, posted a gain of 15.5 % at the end of March.
The MLP share closed at € 6.66 on March 3o, 2o12, corresponding to a rise of 31.9 % compared to the beginning of the year. The MLP share thus registered a signifi cantly higher gain compared to the relevant indices. During the fi rst quarter the MLP share moved within a price corridor of € 5.o5 at the start of January and € 6.66 at the end of March.
Further information concerning the MLP share is available from our Investor Relations page on the MLP website at www.mlp-ag.com under the heading "MLP-share".
The Executive and Supervisory Boards are proposing a dividend of € o.6o per share (previous year € o.3o) for approval at the Annual General Meeting on June 26, 2o12. MLP thus offers one of the most attractive dividend yields in Germany and once again highlights its high dividend continuity for investors. This year shareholders can again receive the dividend without tax deduction.
The MLP Annual General Meeting 2o12 will be held on June 26, 2o12 at the Rosengarten in Mannheim. Further information about all aspects of the Annual General Meeting is available on our Investor Relations page at http://www.mlp-agm.com.
| All fi gures in €'000 | Notes | 1st quarter 2012 | 1st quarter 2011 |
|---|---|---|---|
| Revenue | (6) | 126,273 | 125,526 |
| Other revenue | 5,189 | 5,316 | |
| Total revenue | 121,462 | 130,842 | |
| Commission expenses | (7) | – 43,014 | – 48,292 |
| Interest expenses | – 2,102 | – 2,174 | |
| Personnel expenses | (8) | – 26,023 | – 29,889 |
| Depreciation and amortization | – 3,579 | – 3,622 | |
| Other operating expenses | (9) | – 34,507 | – 38,527 |
| Earnings from shares accounted for using the equity method | 183 | 234 | |
| Earnings before interest and tax (EBIT) | 12,421 | 8,572 | |
| Other interest and similar income | 530 | 1,248 | |
| Other interest and similar expenses | – 377 | – 2,245 | |
| Finance cost | (10) | 154 | – 997 |
| Earnings before tax (EBT) | 12,574 | 7,576 | |
| Income taxes | – 3,173 | – 2,947 | |
| Earnings from continuing operations after tax | 9,402 | 4,628 | |
| Earnings from discontinued operations after tax | – | 22 | |
| Net profi t | 9,402 | 4,651 | |
| Of which attributable to | |||
| owners of the parent company | 9,402 | 4,651 | |
| Earnings per share in €1 | |||
| From continuing operations | |||
| basic | 0.09 | 0.04 | |
| diluted | 0.09 | 0.04 | |
| From continuing and discontinued operations | |||
| basic | 0.09 | 0.04 | |
| diluted | 0.09 | 0.04 | |
1 Basis of calculation: Average number of shares at March 31, 2012: 107,877,738. [Table 08]
| All fi gures in €'000 | 1st quarter 2012 | 1st quarter 2011 |
|---|---|---|
| Net profi t | 9,402 | 4,651 |
| Other comprehensive income | ||
| Gains / losses from changes in the fair value of available-for-sale securities | 1,377 | – 606 |
| Deferred taxes recognized on components of other comprehensive income | – 400 | 91 |
| Other comprehensive income after tax | 977 | – 515 |
| Total comprehensive income for the year | 10,379 | 4,135 |
| Total comprehensive income attributable to | ||
| owners of the parent company | 10,379 | 4,135 |
| [Table 09] |
| All fi gures in €'000 | Notes | March 31, 2012 | Dec. 31, 2011 |
|---|---|---|---|
| Intangible assets | 139,504 | 140,331 | |
| Property, plant and equipment | 73,075 | 71,569 | |
| Investment property | 7,461 | 7,481 | |
| Shares accounted for using the equity method | 3,047 | 2,863 | |
| Deferred tax assets | 5,625 | 4,688 | |
| Receivables from clients in the banking business | 374,662 | 360,148 | |
| Receivables from banks in the banking business | (11) | 449,067 | 487,557 |
| Financial assets | (12) | 263,863 | 232,024 |
| Tax refund claims | 6,920 | 6,140 | |
| Other accounts receivable and other assets | (13) | 105,288 | 143,640 |
| Cash and cash equivalents | 34,493 | 31,350 | |
| Total | 1,463,006 | 1,487,792 |
[Table 10]
| All fi gures in €'000 | Notes | March 31, 2012 | Dec. 31, 2011 |
|---|---|---|---|
| Shareholders' equity | (14) | 409,932 | 399,341 |
| Provisions | 95,507 | 87,849 | |
| Deferred tax liabilities | 9,474 | 9,428 | |
| Liabilities due to clients in the banking business | 841,065 | 827,413 | |
| Liabilities due to banks in the banking business | 13,810 | 14,540 | |
| Tax liabilities | 2,536 | 1,585 | |
| Other liabilities | (13) | 90,682 | 147,635 |
| Total | 1,463,006 | 1,487,792 |
| All fi gures in €'000 | 1st quarter 2012 | 1st quarter 2011 |
|---|---|---|
| Cash fl ow from operating activities | 36,140 | 48,932 |
| Cash fl ow from investing activities | – 19,351 | 26,950 |
| Cash fl ow from fi nancing activities | – | – 3 |
| Change in cash and cash equivalents | 16,789 | 75 ,880 |
| Cash and cash equivalents at the end of the period | 69,493 | 201,345 |
| Thereof discontinued operations | ||
| Cash fl ow from operating activities | – | – 63 |
| Cash fl ow from investing activities | – | – |
| Cash fl ow from fi nancing activities | – | – |
| Change in cash and cash equivalents | – | – 63 |
| Cash and cash equivalents at the end of the period | – | – |
[Table 12]
| 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 |
Other equity |
Total shareholders' equity |
| As of Jan. 1, 2011 | 107,878 | 142,184 | 1,193 | 168,731 | 419,984 |
| Changes to the scope of consolidation | – | – | – | 88 | 88 |
| Transactions with owners | – | – | – | 88 | 88 |
| Total comprehensive income | – | – | –515 | 4,651 | 4,135 |
| As of March 31, 2011 | 107,878 | 142,184 | 677 | 173,469 | 424,208 |
| As of Jan. 1, 2012 | 107,878 | 142,184 | 424 | 148,857 | 399,341 |
| Changes to the scope of consolidation | – | 50 | – | 161 | 211 |
| Transactions with owners | – | 50 | – | 161 | 211 |
| Total comprehensive income | – | – | 977 | 9,402 | 10,379 |
| As of March 31, 2012 | 107,878 | 142,234 | 1,401 | 158,420 | 409,932 |
[Table 13]
| Financial Services | |||||
|---|---|---|---|---|---|
| All fi gures in €'000 | 1st quarter 2012 | 1st quarter 2011 | |||
| Revenue | 106,698 | 117,120 | |||
| of which total inter-segment revenue | 1,251 | 60 | |||
| Other revenue | 3,670 | 4,176 | |||
| of which total inter-segment revenue | 423 | 430 | |||
| Total revenue | 110,369 | 121,296 | |||
| Commission expenses | – 41,452 | – 47,851 | |||
| Interest expenses | – 2,103 | – 2,174 | |||
| Personnel expenses | – 18,759 | – 20,563 | |||
| Depreciation/amortization | – 2,442 | – 2,363 | |||
| Impairment | – – |
||||
| Other operating expenses | – 31,648 | – 37,127 | |||
| Earnings from shares accounted for using the equity method | 183 | 234 | |||
| Segment earnings before interest and tax (EBIT) | 14,148 | 11,452 | |||
| Other interest and similar income | 84 58 |
||||
| Other interest and similar expenses | – 222 | – 380 | |||
| Finance cost | – 139 | – 322 | |||
| Earnings before tax (EBT) | 14,009 | 11,130 | |||
| Income taxes | |||||
| Earnings from continuing operations after tax | |||||
| Earnings from discontinued operations after tax | – 22 |
||||
| Net profi t (total) | |||||
| Feri | Holding | Consolidation | Total | ||||
|---|---|---|---|---|---|---|---|
| 1st quarter 2012 | 1st quarter 2011 | 1st quarter 2012 | 1st quarter 2011 | 1st quarter 2012 | 1st quarter 2011 | 1st quarter 2012 | 1st quarter 2011 |
| 10,976 | 8,510 | – | – | – 1,402 | – 105 | 116,273 | 125,526 |
| 151 | 45 | – | – | – 1,402 | – 105 | 0 | 0 |
| 1,629 | 877 | 2,475 | 3,001 | – 2,585 | – 2,738 | 5,189 | 5,316 |
| – | – | 2,162 | 2,308 | – 2,585 | – 2,738 | 0 | 0 |
| 12,605 | 9,387 | 2,475 | 3,001 | – 3,987 | – 2,842 | 121,462 | 130,842 |
| – 2,795 | – 461 | – | – | 1,234 | 20 | – 43,014 | – 48,292 |
| – | – | – | – | 1 | 1 | – 2,102 | – 2,174 |
| – 6,046 | – 6,462 | – 1,218 | – 2,863 | – | – | – 26,023 | – 29,889 |
| – 502 | – 526 | – 635 | – 732 | – | – | – 3,579 | – 3,622 |
| – | – | – | – | – | – | – | – |
| – 2,850 | – 2,301 | – 2,740 | – 1,875 | 2,732 | 2,776 | – 34,507 | – 38,527 |
| – | – | – | – | – | – | 183 | 234 |
| 412 | – 364 | – 2,118 | – 2,470 | – 20 | – 46 | 12,421 | 8,572 |
| 5 | 7 | 532 | 3,659 | – 90 | – 2,477 | 530 | 1,248 |
| – 57 | – 3 | – 211 | – 2,070 | 114 | 209 | – 377 | – 2,245 |
| – 52 | 4 | 320 | 1,590 | 24 | – 2,269 | 154 | – 997 |
| 360 | – 360 | – 1,798 | – 880 | 3 | – 2,314 | 12,574 | 7,576 |
| – 3,173 | – 2,947 | ||||||
| 9,402 | 4,628 | ||||||
| – | 22 | ||||||
| 9,402 | 4,651 | ||||||
| [Table 14] |
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, fi nancing, 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, 2o11 .
The same consolidation principles and accounting policies as for the consolidated fi nancial statements of the fi nancial year 2o11 have been applied to this interim fi nancial report. These are presented in the Group notes of the annual report 2o11 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 arize 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, 2o11 except the standards and interpretations to be used for the fi rst time in the fi nancial year 2o12 .
In the fi nancial year 2o12 the following new or revised standards are to be used for the fi rst time:
• Amendment to IFRS 7 "Financial Instruments: Disclosures".
MLP does not expect any effects on the net assets, fi nancial position or profi t situation from the amendment to IFRS 7 (adopted by the EU in November 2o11), but there may be more detailed information requirements.
Following a resolution passed on March 22, 2o12 and with effect from January 1, 2o12, the previously, for minority reasons, non-consolidated Luxembourg-based subsidiaries Family Private Fund Management Company S.à.r.l., Ferrum Fund Management Company S.à.r.l., Ferrum Pension Management S.à.r.l. and Private Trust Management Company S.à.r.l. were retrospectively merged with the since 2o11 fully consolidated Feri Trust (Luxemburg) S.A. (up to March 22, 2o12: Institutional Trust Management Company S.à.r.l.).
As anticipated, MLP recorded a decrease in health insurance revenues in the fi rst quarter. Legislation changes which came into effect from 1st January 2o11 enabled employees to more easily switch to private health insurance and led to a catch-up effect in the fi rst quarter of 2o11. Following the strong fi nal quarter in 2o11, revenues in old-age provision also fell slightly. Due to seasonal infl uences on its business operations, the Group nevertheless anticipates a higher level of net profi t for the remainder of the fi nancial year than was achieved in the fi rst quarter.
| All fi gures in €'000 | 1st quarter 2012 | 1st quarter 2011 |
|---|---|---|
| Old-age provision | 48,946 | 50,508 |
| Wealth management | 19,247 | 19,349 |
| Health insurance | 19,082 | 28,044 |
| Non-life insurance | 17,877 | 16,811 |
| Loans and mortgages | 2,904 | 3,127 |
| Other commission and fees | 877 | 775 |
| Commission and fees | 108,934 | 118,613 |
| Interest income | 7,339 | 6,912 |
| Total | 116,273 | 125,526 |
[Table 15]
Commission expenses decreased from € 48,292 thsd to € 43,o14 thsd. They mainly contain commissions and other remuneration components for the self-employed MLP consultants. For further explanations please refer to the section "Results Of Operations" of the Management Report.
Personnel expenses decreased from € 29,889 thsd. to € 26,o23 thsd. For further explanations please refer to the section "Results Of Operations" of the Management Report.
At March 31, 2o12, the MLP Group had the following numbers of employees in the strategic fi elds of business:
| All fi gures in €'000 | March 31, 2012 | of which part-time employees |
March 31, 2011 | of which part-time employees |
|---|---|---|---|---|
| Financial Services | 1,256 | 106 | 1,367 | 122 |
| Feri | 250 | 58 | 247 | 57 |
| Holding | 9 | – | 12 | 1 |
| Total | 1,515 | 164 | 1,626 | 180 |
[Table 16]
| All fi gures in €'000 | 1st quarter 2012 | 1st quarter 2011 |
|---|---|---|
| IT operations | 10,737 | 12,197 |
| Rental an leasing | 3,685 | 3,943 |
| Administration operations | 3,325 | 3,244 |
| Consultancy | 3,009 | 3,014 |
| Representation and advertising | 2,256 | 1,923 |
| Premiums and fees | 1,727 | 1,240 |
| External services – banking business | 1,719 | 1,610 |
| Training and further education | 1,022 | 1,913 |
| Travel expenses | 801 | 1,251 |
| Entertainment | 799 | 1,149 |
| Insurance | 767 | 745 |
| Expenses for commercial agents | 679 | 832 |
| Write-downs and impairments of other receivables from clients in the banking business | 505 | 524 |
| Maintenance | 499 | 523 |
| Other personel costs | 297 | 307 |
| Audit | 205 | 232 |
| Write-downs and impairments of other receivables and other assets | 142 | 1,695 |
| Expenses from the disposal of assets | 56 | 7 |
| Sundry other operating expenses | 2,276 | 2,178 |
| Total | 34,507 | 38,527 |
[Table 17]
The costs of IT operations are mainly attributable to IT services and computer center services that have been outsourced to an external service provider. The consulting costs are made up of tax advice costs, legal advice costs as well as general and IT consulting costs. The expenses for administration operations contain costs relating to building operations, offi ce costs and communication costs. Expenses for representation and advertizing 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. Depreciation and impairment on other receivables and other assets comprise allowances for receivables from commercial agents. Expenses for commercial agents include costs for former consultants and the training allowance granted for new consultants. Sundry other operating expenses essentially comprise external services, expenses for the participation program, car costs and Supervisory Board remuneration.
| All fi gures in €'000 | 1st quarter 2012 | 1st quarter 2011 |
|---|---|---|
| Other interest and similar income | 530 | 1,248 |
| Interest and similar expenses from fi nancial instruments | – 44 | – 1,923 |
| Accrued interest on pension provisions | – 333 | – 321 |
| Other interest and similar expenses | – 377 | – 2,245 |
| Finance cost | 154 | – 997 |
| [Table 18] |
The improved fi nancial result is primarily attributable to the absence of dividend payments to former shareholders of Feri AG, which, in the previous year, led to interest expenses amounting to € 1,74o thsd. On the other hand, there was no recurrence of expenses and revenue from interest swaps which positively infl uenced the fi nancial result in the previous year.
The decrease in receivables from banks from € 487,557 thsd to € 449,o67 thsd, is mainly attributable to the profi t transfer payment by MLP Finanzdienstleistungen AG to MLP AG for the fi nancial year 2o11 .
| All fi gures in €'000 | March 31, 2012 | Dec. 31, 2011 |
|---|---|---|
| Securities rated at fair value through profi t and loss | 7,698 | 6,695 |
| Available for sale | ||
| Securities | 9,562 | 8,522 |
| Investments | 2,275 | 2,774 |
| Held-to-maturity securities | 109,066 | 108,768 |
| Loans and receivables | 135,261 | 105,265 |
| Total | 263,863 | 232,024 |
| [Table 19] |
The rise in fi nancial investments is primarily attributable to the investment of MLP AG's liquid funds in fi xed-term deposits. Write-ups were made to securities rated at fair value through profi t and loss that were acquired for the hedging of MLP's participation program .
Due to the seasonally stronger year-end business, high receivables from insurance companies as well as high liabilities towards commercial agents at December 31, 2o11 had to be shown which were then balanced out in the fi rst quarter of 2o12. A lower amount of receivables and liabilities were built up in the fi rst quarter of 2o12.
The share capital of MLP AG is made up of 1o7,877,738 no-par-value shares (December 31, 2o11: 1o7,877,738 no-par-value shares) .
The Executive and Supervisory Board propose to the Annual General Meeting on June 26, 2o11 a dividend of € 64,727 thsd (previous year: € 32,363 thsd) for the fi nancial year 2o11. This corresponds to € o.6o per share (previous year: € o.3o per share) .
The consolidated cash fl ow statement 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 .
The Cash fl ow from operating activities results from cash fl ows that cannot be defi ned as investing or fi nancing activities. This is determined on the basis of the consolidated net profi t for the year from continuing operations, current earnings and profi t from the sale of discontinued operations. 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 explanations please refer to the section "Financial Position" of the Management Report.
The Cash fl ow from investing activities is mainly infl uenced by the investment of monies in fi xed-term deposits as well as by matured term investments.
The Cash fl ow from fi nancing activities represents cash-related equity changes, loans used and paid back, as well as payments for the acquisition of additional shares in subsidiaries.
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 investments which can be converted into cash at any time and which are only subject to minor value fl uctuation risks.
| All fi gures in €'000 | March 31, 2012 | March 31, 2011 |
|---|---|---|
| Cash | 33,139 | 46,345 |
| Loans ≤ 3 months | 35,000 | 155,000 |
| Liabilities to banks due on demand | – | – 1 |
| Change in cash and cash equivalents from changes to the scope of consolidation | 1,354 | – |
| Cash and cash equivalents | 69,493 | 201,345 |
| [Table 20] |
The receivables from banks of MLP Finanzdienstleistungen AG are not included in cash and cash equivalents, as they are to be attributed to the operating activities of the banking business segment.
There were no signifi cant changes compared to December 31, 2o11.
Net income from discontinued operations breaks down as follows.
| All fi gures in €'000 | 1st quarter 2012 | 1st quarter 2011 |
|---|---|---|
| Operating profi t | – | – |
| Earnings from the sale/disclosure of operations before tax | – | 32 |
| Income taxes | – | – 9 |
| Earnings from the sale of operations after tax | – | 22 |
| Earnings from discontinued operations after tax | – | 22 |
| Earnings per share in € | ||
| from discontinued operations | ||
| basic and diluted | – | 0.00 |
| [Table 21] |
There were no signifi cant changes compared to December 31, 2o11.
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. Beyond this there were no signifi cant changes compared to December 31, 2o11.
There were no notable events after the balance sheet date which may affect the MLP Group's net assets, fi nancial position or results of operations.
Wiesloch, May 9, 2o12
MLP AG
Executive Board
Dr. Uwe Schroeder-Wildberg Manfred Bauer Reinhard Loose Muhyddin Suleiman
| 05 Figure 01 | German Gross Domestic Product, change |
|---|---|
| in % compared to the previous quarter | |
| 06 Figure 02 | Euro debt crisis is infl uencing provision behavior |
| 07 Figure 03 | The general public expects healthcare provision to |
| be greatly affected by the ageing society | |
| 08 Figure 04 | Infl ows and outfl ows in various types of mutual |
| investment funds in Germany in Q1 2012 | |
| 09 Figure 05 | Total revenue from continuing operations |
| 11 Figure 06 | EBIT from continuing operations |
| 17 Figure 07 | Total revenue and EBIT for the Financial Services |
| Segment | |
| 18 Figure 08 | Total revenue and EBIT for the Feri Segment |
| 19 Figure 09 | Expected growth in GDP in Germany |
| 21 Figure 10 | Anticipated development of revenue 2012 |
| 21 Figure 11 | Development of the operating EBIT margin |
| 2004–2012 |
22 Figure 12 MLP share, SDAX and DAXsector Financial Services in Q1 2012
02 Table 01 MLP Key fi gures
| 10 Table 02 | Earnings development of continuing operations | |
|---|---|---|
| 12 Table 03 | Assets as of March 31, 2012 | |
| 13 Table 04 | Liabilities and shareholders' equity as of | |
| March 31, 2012 | ||
| 14 Table 05 | Condensed statement of cash fl ow in continuing | |
| operations | ||
| 15 Table 06 | Number of employees | |
23 Table 07 Key fi gures of the MLP share
| 24 Table 08 | Income statement for the period from |
|---|---|
| January 1 to March 31, 2012 | |
| 25 Table 09 | Statement of comprehensive income |
| for the period from January 1 to March 31, 2012 | |
| 25 Table 10 | Assets as of March 31, 2012 |
| 25 Table 11 | Liabilities and shareholders' equity as of |
| March 31, 2012 | |
| 26 Table 12 | Condensed statement of cash fl ow for the |
| period from January 1 to March 31, 2012 | |
| 27 Table 13 | Statement of changes in equity |
| 28 Table 14 | Segment reporting | |
|---|---|---|
| 31 Table 15 | Revenue | |
| 32 Table 16 | Personnel expenses/Number of employees | |
| 32 Table 17 | Other operating expenses | |
| 33 Table 18 | Finance cost | |
| 34 Table 19 | Financial assets | |
| 35 Table 20 | Cash and cash equivalents | |
| 36 Table 21 | Net income of discontinued operations |
Dr. Uwe Schroeder-Wildberg (Chairman, appointed until December 31, 2o17)
Manfred Bauer (Product Management, appointed until April 3o, 2o15)
Reinhard Loose (Controlling, IT and Procurement, Accounting, Risk Management, appointed until January 31, 2o14)
Muhyddin Suleiman (Sales, appointed until September 3, 2o17) Supervisory Board Dr. Peter Lütke-Bornefeld (Chairman, appointed until 2o13)
Dr. h. c. Manfred Lautenschläger (Vice chairman, appointed until 2o13)
Dr. Claus-Michael Dill (appointed until 2o13)
Johannes Maret (appointed until 2o13)
Maria Bähr (Employee representative, appointed until 2o13)
Norbert Kohler (Employee representative, appointed until 2o13)
Telephone +49 (o) 6222 • 3o8 • 832o Fax +49 (o) 6222 • 3o8 • 1131 E-Mail [email protected]
Telephone +49 (o) 6222 • 3o8 • 831o Fax +49 (o) 6222 • 3o8 • 1131 E-Mail [email protected]
May 1o, 2o12 Publication of the results for the fi rst quarter. MLP publishes the Interim Report for the fi rst quarter.
June 26, 2o12 Annual General Meeting MLP AG in Mannheim. MLP AG holds its Annual General Meeting at the Rosengarten in Mannheim.
August 9, 2o12 Publication of the results for the fi rst half-year and the second quarter. MLP publishes the Interim Report for the fi rst half-year and the second quarter.
November 14, 2o12 Publication of the results for the fi rst 9 months and the third quarter. MLP publishes the Interim Report for the fi rst 9 months and the third quarter.
All updated Investor Relations dates can be found in our fi nancial calendar at: http://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", "anticipate", "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 liability 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, Germany Tel +49 (0) 6222 • 308 • 8320 Fax +49 (0) 6222 • 308 • 1131 www.mlp-ag.com
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