Shaping change - Creating opportunities
Uwe Schroeder-Wildberg, CEO
DrKW German Investment Seminar 2009
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- Highlights and Results 9M and Q3 2008
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- MLP's Business Model and Positioning
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- KPIs
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- Market Environment
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- Growth Drivers
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- Outlook and Summary
1. Highlights and Results 9M and Q3 2008
DrKW German Investment Seminar 2009
Highlights – Overall market developments 9M 2008
- yExtremely difficult market environment
- y Capital market crisis has
- yled to a loss of confidence among retail and institutional customers
- y spread out to the whole economy and lowered expectations regarding future economic development
- y Old-age pension provision market: New business has been flat and this is currently a "crowding out" market
- y Wealth management market: Inflows into funds decreased – despite introduction of a flat-rate withholding tax on capital gains from 2009
- y Private health insurance market: New business decreased significantly due to health insurance reform in 2007
Highlights – 9M and Q3 2008
- y MLP has successfully implemented the new regulatory rules and regulations
- yTotal revenues for 9M 2008 at previous year's level
- y Business development indirectly influenced by capital market crisis
- yCustomers reluctant to make long-term investment decisions
- ySluggish new business in wealth management
- y Lower recurring and performance fees in wealth management business due to the fall in capital markets
- yUnexpected loss at TPC
9M: Total revenues at previous year's level
Total revenues 9M 2008
2. MLP's Business Model and Positioning
DrKW German Investment Seminar 2009
Independent Business Model and One-stop for Lifetime Financial Solutions
Independent Business Model is unique in the German Market
Independence is Key for MLP's Customer Group
The most important Demands of Customers with an University Degree
Source: Spiegel-Studie Soll & Haben, 2004
Page 9
Number of clients growing steadily
y10,000 new clients (gross) gained in Q3
MLP has a leading Market Position in Germany
Market Position of Selected Distribution Companies in the German Market 2007
Page 11 Source: Annual Reports 2007
3. Key Performance Indicators
DrKW German Investment Seminar 2009
Strong Total Revenues Growth Trend
Continuing Operations
Total revenues
[in € million]
* pro forma
EBIT Margin at Record High
Continuing Operations
EBIT margin
[in %]
Highest cross-selling rate of 6.9 in the industry
Page 14 * Pro forma
Peer Group Comparison 2007
EBIT margin [in %] 50OVB12.3AWD11.120MLP17.3BCA2.71015Aragon 8.2
Revenue per consultant [in €]
Sources: Annual Reports 2007
4. Market Environment
DrKW German Investment Seminar 2009
Extensive Statutory Changes . . .
Regulatory Requirements
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Broadening of the information obligations
. . . Lead to Radical Changes in the German Financial Industry
Major Market Trends for Banks, Insurance Companies and IFAs
Increasing regulatory requirements will further change the market place dramatically:
Further optimisation of cost structure and processes
- Consolidation
- Professionalisation
- Specialisation
MLP is optimally prepared to meet the new Requirements
Extensive new regulations:
- xBrokerage guideline, MiFID, VVG
- x Flat-rate capital gains tax, healthcare reform
Increasing competition:
x Banks and new providers are entering the market
High client requirements:
x Clients demand quality and comprehensive consultation
High complexity:
x Numerous products/high tax complexity
- x Capability to adjust rapidly to changed framework conditions
- x Highly developed IT systems and processes
- xUnique positioning in the market
- x Industry-leading education and further training
- x High quality target group and excellent quality parameters
Æ Excellent prospects through clear positioning and targeted further development
Independent Brokers gain significant Market Shares
Effects of the Regulation in Great Britain
Sales by channel in 1992 Sales by channel in 2006
5. Growth Drivers
- Old-age Pension Provisions
- Wealth Management
- •Productivity Increases
Growth through holistic Consulting Approach
High Revenue Potential with Old-age Pension Provisions
Potential sales revenue – MLP Finanzdienstleistungen AG per year and client
High Potential in Old-age Pension Provision
The Pension Level of the Future – as a Percentage of gross Salary*
* Level of state pension according to current legislation. Selected countries. Basis for calculation: employee, aged 20 who starts full time work in 2004 and continues working up until the legal pension age (average earner).
Market Share of Old-age Pension Provision Business increased
Core Competence strengthened
Source: Own calculations / market share measured as percentage of total annual premiums
Growth through a holistic Consulting Approach
Rising Revenue Potential in Wealth Management
Potential sales revenue - MLP Finanzdienstleistungen AG per client and year
Low Average Age offers high Potential
Targeted Expansion of MLP Wealth Management
Clients by age
- y MLP clients' income and savings quotas clearly exceed average levels
- y The average age of an MLP client is 39
- y Already 37 per cent of clients are older than 40
- y The number of clients over 40 years of age will double within five years
Stable Development of AuM against the Market Trend
Assets under Management
[in € bn]
• Inflows into funds fell by almost 45% in 9M 2008 in the German market
Increase in Productivity through targeted Support for the Consultants
Example: Mortgages
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- Personal consultation
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- Customised mortgage offers
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- Offers from several companies
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- Innovative mortgage products
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- Quick and simple processes
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- Favourable terms
Requirements – MLP client Requirements – MLP consultant
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- Support with
- Inspection/preparation of the files
- Collecting the documents
- Consultation
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- Technology/Use
- Intuitive, current, fast
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- Comprehensive product portfolio
6. Outlook and Summary
DrKW German Investment Seminar 2009
Outlook and Summary
- Capital market crisis had a negative impact on MLP's business development
- Retail and institutional customers are apprehensive and reluctant to make long-term investment decisions
- •Business development in Q3 was weaker than expected
- Year-end business was less dynamically compared to previous fourth quarters
- Despite challenging market environment MLP expects total revenues in 2008 to be around previous year's level
Shaping change - Creating opportunities
Uwe Schroeder-Wildberg, CEO
DrKW German Investment Seminar 2009