MLP SE

Earnings Release • Feb 24, 2010

News Details

Media | 24 February 2010 07:32

MLP AG: MLP concludes the financial year with a significant rise in earnings in the fourth quarter

MLP AG / Finance

24.02.2010 07:32

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Preliminary results:

MLP concludes the financial year with a significant rise in earnings in the
fourth quarter

* Q4: EBIT increases by 74 percent to EUR 30.5 million (Previous year:
EUR 17.5 million)

* Total revenues in Q4 amount to EUR 186.8 million, almost equal to the
level of the previous year

* Full year: Cost reduction objectives significantly exceeded - Group net
profit totals EUR 24.2 million, similar to the level of the previous
year (2008: EUR 24.6 million)

* Assets under management climb to EUR 12.8 billion - a new record high

* Outlook: Increase in EBIT margin to 15 percent by the end of 2012
(2009: 7.9 percent)

Wiesloch/Frankfurt, 24th February 2010 - MLP, the independent financial
services and wealth management consulting company, achieved a significant
improvement in performance at the end of the financial year. In the fourth
quarter, earnings before interest and taxes (EBIT) rose by 74 percent to
EUR 30.5 million (Q4 2008: EUR 17.5 million). Net profit from continuing
operations increased by 89 percent to EUR 23.0 million (EUR 12.2 million).
Total revenues stood at EUR 186.8 million, thus almost equalling the figure
achieved in the corresponding period of the previous year (EUR 189.1
million); compared to the third quarter this represents an increase of 64
percent (Q3 2009: EUR 113.9 million).

'We saw a considerable pick-up and performed well in the fourth quarter,'
comments MLP Chief Executive Officer Dr. Uwe Schroeder-Wildberg. 'As it was
also the case in 2008, the final quarter proved to be less dynamic than in
previous years due to the far-reaching effects of the economic and
financial crisis.'

Full year 2009: Total revenues only 11 percent lower

Despite the very difficult prevailing market conditions, total revenues in
2009 fell by just 11 percent to EUR 532.1 million (2008: EUR 595.2
million). The breakdown of the revenues from commissions and fees
illustrates the considerable reluctance on the part of many clients
regarding long-term contracts and capital market-associated investments. In
this respect, revenues from old-age pension provision fell by ten percent
to EUR 311.1 million (EUR 344.8 million). In wealth management, revenues
declined by 13 percent to EUR 71.6 million (EUR 82.2 million). On the other
hand, many clients preferred to focus on increasing their level of risk
protection, leading to a rise in revenues from non-life insurance of 15
percent to EUR 26.5 million (EUR 23.1 million). In the health insurance
business, revenues increased to EUR 46.5 million (EUR 45.9 million).

Cost reduction objectives significantly exceeded

In the financial year 2009, EBIT amounted to EUR 42.2 million (EUR 56.2
million). This figure includes exceptional and one-off expenses amounting
to EUR 3.0 million that were incurred in the first half-year for capital
market-relevant consulting services in consequence of Swiss Life's stake in
MLP. In addition, there were also one-off restructuring-related costs of
around EUR 2.0 million. Net profit from continuing operations totalled EUR
27.2 million (EUR 30.7 million). In the discontinued operations, the loss
amounted to EUR 3.0 million (EUR -6.1 million). In addition to the disposal
and restructuring costs as well as the operating loss concerning former
foreign activities, among other things this figure includes sale proceeds
of around EUR 6 million for the Austrian operation that MLP successfully
sold to Aragon AG. Overall, Group net profit amounted to EUR 24.2 million
and therefore remained around the level of the previous year (EUR 24.6
million).

The benefits of the efficiency programme initiated in February 2009 are
reflected in the resilient earnings development. After adjustments for
special effects and acquisition-related costs, MLP reduced its fixed costs
in 2009 by a total of EUR 28.7 million - thus surpassing the announced cost
reduction target of EUR 24 million by EUR 4.7 million.

MLP continues to boast excellent balance sheet strength with respect to key
figures: On 31st December the equity capital stood at 28 percent and liquid
funds amounted to EUR 209 million.

'Throughout 2009 we operated under considerably tougher market conditions -
both in the private client as well as in the corporate client sector,'
comments Uwe Schroeder-Wildberg. 'However, we utilised the available
opportunities whilst also reaping the benefits of our strict cost
management programme.'

Assets under management at a new record high

Thanks to modest inflows of funds and very good management performance at
MLP's subsidiary Feri, assets under management at 31st December rose to EUR
12.8 billion - the highest figure so far achieved in the history of MLP
(31.12.2008: EUR 11.4 billion). Following a successful fourth quarter, MLP
recorded a premium sum in old-age pension provision of EUR 5.1 billion in
2009- compared to the previous year's achievement of EUR 6.6 billion which
was, however, significantly influenced by the so-called 'Riester' step. The
occupational pension area accounted for a larger proportion of new
business, rising to 10 percent (2008: 8 percent). The cross-selling rate
also further increased - at 7.5 contracts per client (7.3) MLP manages and
services its clients more comprehensively and holistically than any other
provider in the market.

34,500 new clients gained in 2009

In the fourth quarter MLP gained around 10,500 new clients - making this
period the strongest quarter of the financial year. In total, MLP was able
to welcome around 34,500 new clients in 2009. The number of consultants at
31.12.2009 rose to 2,383 (30.9.2009: 2,360).

Outlook to 2012: Increase in EBIT margin to 15 percent
In view of the economic and financial crisis, the framework conditions in
the financial year 2010 - particularly in the first half year - will remain
difficult. Although there are signs of a tentative pick-up in the private
client and corporate client business areas, the market environment remains
generally tense and clients continue to act cautiously. Against this
background MLP will continue to exercise the cost reduction plan introduced
last year. The goal remains to reduce fixed costs in 2010 by a further EUR
10 million.

Particularly from 2011 MLP anticipates a return to improved framework
conditions and has set itself the medium-term objective of increasing the
EBIT margin to 15 percent by the end of 2012 - representing almost a
doubling of this figure compared to the financial year 2009 (7.9 percent).
'For many years now MLP stands for not only providing an excellent standard
of consulting services but also on generating a high level of
profitability,' comments Andreas Dittmar, Head of Finance. 'When the
economic and financial crisis subsides, we intend to return to our
accustomed strength in profitability.'

MLP will be publishing the Group Annual Report on 25th March 2010.

Overview of the key figures

Continuing Q4/ Q4/ Change 12 months 12 months Change
operations(in EUR 2009 2008 in % 2009 2008 in %
million)
Revenues 173 174 0 503.8 552.3 -9
.5 .2
Revenues from 166 163 2 472.4 511.5 -8
commissions and .9 .6
fees
Interest income 6.6 10.6 -38 31.4 40.8 -23
Other revenue 13.3 14.9 -11 28.4 42.9 -34
Total revenues 186 189 -1 532.1 595.2 -11
,8 .1
Profit before 30.5 17.5 74 42.2 56.2 -25
interest and taxes
(EBIT)
Profit before tax 29.0 17.0 71 39.7 46.6 -15
(EBT)
Net profit 23.0 12.2 89 27.2 30.7 -11
Earnings per share 0.21 0.12 75 0.25 0.30 -17
(diluted) in EUR
Clients 785,500 728,000* 8
Consultants 2,383 2,413* -1

*) 31.12.2008

Jan Berg
Leiter Media Relations MLP AG
Alte Heerstraße 40, 69168 Wiesloch
Tel.: +49 (0) 62 22-308-4595
Fax: +49 (0) 62 22-308-1131
E-Mail: jan.berg@mlp.de
Internet: www.mlp-ag.de

24.02.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: MLP AG
Alte Heerstraße 40
69168 Wiesloch
Deutschland
Internet: www.mlp.de

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