Investor Presentation
UweSchroeder-Wildberg, CEO
RoadshowFrankfurt
June 23, 2010
Agenda
- •Highlights Q1 2010
- •Financial details Q1 2010
- •Clients and consultants
- •Outlook and summary
- •Appendix
Highlights Q1 2010
- •Q1 still influenced by the financial and economic crisis
- •EBIT increased by 26%
- • Newclients + 21%
- •AuM reached new record high of € 17.7 bn
- • Positive development in new business for old-age provision and health insurance
- • MLP will further increase the quality of its sales force: Certified Financial Planner (CFP)
- •Dividend proposal: € 0,25 per share, dividend sum € 27.0 m
Agenda
- •Highlights Q1 2010
- •Financial details Q1 2010
- •Clients and consultants
- •Outlook and summary
- •Appendix
Total revenue slightly below previous year's level
Total revenue Q1 2010
[in € million]
Revenue wealth management up 7%
Revenue – commissions and fees
[in € million]
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AuM reached new record high
Assets under Management and new business old-age provision
* In accordance with the BVI methodology
Positive earnings development
Continuing operations
Income statement
[in € million]
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- •EBIT rose by 26%
- • Tax rate was influenced by dividend payment to the outstanding Feri shareholders
- •Net profit increased by € 1.9 m
Development of fixed costs in Q1 2010
Strong balance sheet
MLP Group – selected balance sheet items
[in € million]
|
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- •Equity ratio 29.1%
- •Liquid funds € 205 m
- • Seasonal decline in other receivables and other liabilities
Agenda
- •Highlights Q1 2010
- •Financial details Q1 2010
- •Clients and consultants
- •Outlook and summary
- •Appendix
Number of new clients increased significantly
Agenda
- •Highlights Q1 2010
- •Financial details Q1 2010
- •Clients and consultants
- •Outlook and summary
- •Appendix
Significantly improved market environment from 2011
Medium-term outlook
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- •Reduction of fixed costs amounting to € 10 m in 2010
- • Business prospects (particularly in the first half-year 2010) will continue to be affected by the difficult market environment
- • Old-age provision and health insurance: stable revenues in 2010, return to growth from 2011
- •Moderate increase in revenue expected in wealth management
Outlook 2012: Increase in EBIT margin to 15%
MLP Group
EBIT margin*
* before acquisitions and one-offs
- •Q1 was still influenced by the financial and economic crisis
- •Despite difficult market environment EBIT rose by 26%
- •AuM reached record high of € 17.7 bn
- • MLP expects the business development to improve further in the upcoming quarters
- •Reduction of the fixed cost base by € 10 m in FY 2010
- •Outlook 2012: Increase in EBIT margin to 15%
Agenda
- •Highlights Q1 2010
- •Financial details Q1 2010
- •Clients and consultants
- •Outlook and summary
- •Appendix
Reduced willingness towards old-age pension provision – despite large pension gaps
Client behaviour during the economic and financial crisis
Provision commitment young employees (16 - 29 years old)
Assessment of own provision efforts
Source: AllensbachInstitute for Public Opinion Research/Postbank: Old-age pension provision in Germany 2009/2010
Risk-aversion of investors has risen sharply
Client behaviour during the economic and financial crisis
Top 5 product preferences for longer-term investments
ÆFour of the top 5 preferences are heavily risk-averse
Source: BBDO Consulting; Study (February 2010)
Cost cutting target of € 24m clearly exceeded
Development of fixed costs*
* personnel, D&A, operating expenses
Top cross-selling rate
Development - contracts per client
Cross-selling rate
Market share of recurring premiums fell only slightly
Market share – old-age pension provision
Market share recurring premiums*
Source: GDV (German Insurance Association), own calculations / * preliminary market figures
Further increase in market share
Market share - wealth management
Assets under Management in accordance with the BVI methodology
Source: German Association of Investment and Asset Management (BVI), own calculations
Growth of market share in private health insurance
Market share – private health insurance
MLP share of fully insured individuals
Source: German Association of Private Health Insurers, own calculations / * market figures for H2 2009 are not available yet
Stable shareholder structure
Aktionärsstruktur 23.02.2010Overview of shareholders
MLP – a broad-based consulting house
Client orientation as a success factor
Ministry of Consumer Protection calls for higher quality
Ministry requirements:
- yTailored client consulting
- yStructured consulting process
- y Coverage of existential risks as a basis for wealth accumulation
- y Recommendations must correspond to the investment purpose and risk propensity
- y Clearly designed product information sheets
- yClear positioning of the consultant
- yDevelopment of a job description
- yAppropriate qualification
- yAssumption of liability
Set-up at MLP:
- y Client-oriented consulting forms the core of the business model
- yHolistic consulting, service and support
- y Risk propensity of the client as the starting base for consulting and advisory activities
- y High level of transparency through comprehensive documentation and new product information sheet
- yRegistration as an independent broker
- y Support for a legally-anchored job description
- y Training standards far exceed the legal requirements
Top ratings in consulting tests
1st place in the old-age pension provision assessment by WirtschaftsWoche (05/2009)
2nd place and top rating in the client assessment of MLP consulting by WhoFinance (01/2010)
3rd place in the mortgage test carried out by the magazine Euro (07/2009)
Macroeconomic framework conditions remain difficult
Outlook 2010
-6-5-4-3-2-10122009Change in GDP Brokerage business in 2010 will … continue to be adversely affected only be mildly affected no longer be affected at all pick up moderately pick up strongly 38321362[in %] [in %] 1.3 1.4 -5.020082009 2010e
Sources: Annual Economic Report 2010
Source: Survey among German brokers / Magazine "Kurs"
Wide range of potential and opportunities
Outlook 2010
- x Consistent full exploitation of the revenue potential
- x Additional client liquidity through the Citizens Relief Act
- xHigh new client potential
- x Increasing level of quality awareness by clients
- x Active participation in the market consolidation –also for wealth managers
Private clients Institutional clients Rating
- x FIA: External growth and further internationalisation of the business
- x FIA: Increased demand for ALM, Asset Allocation and Risk Overlay systems
- x Occupational pensions: Great need for consulting due to e.g. Accounting Modernisation Act and to increased contributions into the Pensions Assurance Association
Positioning as a European
rating agency
x
ResearchIndependent product and investment research
Extensive new client potential at the universities
Private clients
Annual new client potential - MLP
Sources: Institut fürWirtschaft in Cologne, Federal Statistics Agency, BCG
A further € 10m of cost reductions in 2010
Fixed costs*
* before acquisitions and one-offs
Independent business model and one-stop for lifetime financial solutions
Independent business model is unique in the German Market
Contact
MLP Investor RelationsAlte Heerstr. 4069168 WieslochGermany
- Helmut Achatz, Head of Investor Relations
- Ines Kittlitz, Manager Investor Relations
Tel.: +49 (0) 6222 308 8320 Fax: +49 (0) 6222 308 1131
[email protected] www.mlp-ag.com