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MLP SE

Annual Report • Apr 25, 2025

289_rns_2025-04-25_064cc7d2-b61b-4ac8-8f73-75b1d49b6b55.pdf

Annual Report

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Annual Report 2024

Contents

Disclaimer

For reasons of better readability, neutral gender forms (generic masculine) are used in the following. The corresponding terms apply to all genders in the sense of equal rights. The abbreviated language form is for editorial reasons only and does not imply any judgement.

MLP key figures – Multi-year overview

All figures in € million 2024 2023 2022 2021 2020 2019 2018
Continuing operations
Total revenue 1,066.7 973.5 949.1 934.5 767.3 708.8 666.0
Sales revenue 1,037.5 941.1 913.8 907.3 745.5 689.6 642.1
Other revenue 29.1 32.4 35.4 27.2 21.8 19.2 23.8
Earnings before interest and taxes
(EBIT)		 95.0 70.7 75.6 96.8 59.4 47.1 46.4
EBIT margin (in %) 8.9% 7.3% 8.0% 10.4% 7.7% 6.6% 7.0%
MLP Group
Net profit (total) 69.3 44.1 48.6 62.8 43.2 36.9 34.5
Earnings per share
(diluted/basic) (in €)		 0.63 0.44 0.47 0.57 0.40 0.34 0.32
Dividend per share (in €) 0.36 1 0.30 0.30 0.30 0.23 0.21 0.20
Cash flow from operating activities 165.0 116.7 -292.5 546.3 408.1 191.6 141.2
Capital expenditure 27.2 16.8 42.7 72.2 9.3 22.3 26.6
Shareholders' equity 570.3 532.2 525.5 496.2 454.0 437.3 424.8
Equity ratio (in %) 13.7% 13.6% 13.9% 13.4% 14.0% 15.6% 17.5%
Balance sheet total 4,152.3 3,917.5 3,784.6 3,693.4 3,235.0 2,799.5 2,421.0
Clients
Private clients (Family) 590,700 580,000 569,200 562,300 554,900 549,600 541,200
Corporate and institutional clients 28,000 27,400 28,400 24,800 22,500 21,800 20,900
Consultants 2,110 2,055 2,100 2,083 2,086 1,981 1,928
Branch offices 127 128 130 129 129 130 131
University teams 95 96 102 106 102 93 77
Employees 2,454 2,338 2,252 2,058 1,850 1,783 1,722
Brokered new business
Old-age provision
(total premiums paid in € billion)		 4.1 4.2 3.9 4.6 3.8 4.2 3.9
Loans and mortgages (in € billion) 1.5 1.2 2.1 2.7 2.4 2.0 1.8
Assets under management
(in € billion)		 63.1 57.0 54.3 56.6 42.7 39.2 34.5
Non-life insurance
(premium volume)		 750.6 687.0 632.2 554.6 440.4 405.5 385.6
Real estate (brokered volume) 388.6 238.9 454.7 524.0 403.8 294.0 256.0

1 Subject to the consent of the Annual General Meeting on June 25, 2025

Executive Board

Dr Uwe Schroeder-Wildberg

Chief Executive Office of MLP SE

Digitalisation, Communication (incl. Investor Relations), Clients and Sales, Marketing, Sustainability, Human Resources,

Appointed until December 31, 2027

Strategy

Manfred Bauer

Member of the Executive Board of MLP SE

Infrastructure Product Purchasing and Management

Appointed until April 30, 2025

Reinhard Loose

Member of the Executive Board of MLP SE

Compliance, Controlling, Internal Audit, IT, Group Accounting, Legal Affairs, Risk Management

Appointed until January 31, 2029

Letter to our shareholders

The MLP Group can reflect on a highly successful financial year in 2024. We were able to increase all relevant key figures and in some cases significantly. For the first time, the MLP Group generated more than €1 billion in revenue, and we also reached the upper end of our forecast range for earnings before interest and taxes (EBIT).

The successful financial year 2024 represents an excellent milestone on our sustainable growth path. Taking a closer look at our development at MLP over the past twelve months makes this even more evident:

  • Firstly: We were able to increase total revenue to a new record high of 1,067 million euros. Growth was very broad-based and recorded for the eleventh time in succession. The Wealth competence field made a significant contribution to this, in particular with wealth management and the interest rate business. In terms of recurring revenue, we are at almost 70%. These trailer fees, generated from ongoing client support, represent an important part of our business and make a major contribution to the high stability enjoyed by MLP – as well as our continuous growth.
  • Secondly: At €95 million, our EBIT is significantly higher than in the two previous years, despite high investments. Accordingly, we are also right on track in terms of earnings performance.
  • And thirdly we are now an even more attractive share for you, our shareholders not only offering potential for further growth, but also paying a good dividend: For the financial year 2024, the Executive Board is proposing a dividend of 36 cents per share to the Supervisory Board and the Annual General Meeting. This represents an increase of 20% over the previous year's dividend of 30 cents.

What has driven our Group's success? Our many years of strategic development have helped establish us as highly relevant for our clients. This is also impressively demonstrated by other key figures – in particular the assets under management in our Group and the non-life insurance portfolio volume, both of which reached new record levels. This success also highlights the significant further potential of the MLP Group's unique positioning.

This potential is also reflected in our forecast for 2025 and our mid-term planning up to the end of 2028. In the current financial year, we intend to maintain our strong growth momentum and are forecasting an increase in EBIT to between €100 million and €110 million. Rising sales revenues in the Life & Health and Property & Casualty competence fields are expected to make a particular contribution to earnings growth in 2025.

We also have serious ambitions in our new mid-term planning. This extends into 2028 and clearly demonstrates that MLP is resolutely committed to continuing its successful and strategically developed growth path. This should lead to a further significant increase in EBIT for the Group by the end of 2028.

The planned growth in total revenue forms the basis for this. In this regard, performance-based compensation incurred at FERI has been estimated cautiously and is therefore set at a low level. In fact, our planning is largely based on the recurring revenues in our business model that are already foreseeable – and these will continue to grow with the ongoing increase in the key figures. For the MLP Group, these are primarily the assets under management and non-life insurance portfolio volume.

The decisive factor will be how successfully we continue to provide our discerning clients with a highquality service offering – a service offering that seamlessly blends personal and digital consulting. This naturally applies to family, corporate and institutional clients throughout the Group. Our service offering is also increasingly being supported by the consistent and responsible use of artificial intelligence (AI). We have made significant progress in implementing our underlying digital strategy – and we will continue to intensify our efforts. We see AI as a very powerful tool here. However, it clearly has no consciousness of its own and is not capable of empathy. This means: The special consultant role that our clients demand can only be fulfilled by a very well-trained person.

Speaking for the MLP Group I can say: The results of the past year once again underline the strategic strength we have developed in our business. This means that our Group stays firmly on its course for continued growth.

We would be delighted to have you join us on this journey. I would once again like to offer you all sincere thanks on behalf of the entire Executive Board for the trust you have shown in us this year.

Yours,

Dr Uwe Schroeder-Wildberg

The Supervisory Board

Sarah Rössler Chairwoman Elected until 2028

Dr Andreas Freiling Vice Chairman Elected until 2028

Ursula Blümer Employee representative Elected until 2028

Matthias Lautenschläger Elected until 2028

Bernd Groß Elected until 2028

Monika Stumpf Employee representative Elected until 2028

Report by the Supervisory Board

In the financial year 2024, the Supervisory Board reviewed the development of the company in depth and comprehensively performed its supervisory duties imposed on it by law and the articles of association. It regularly advised and monitored the Executive Board in running the business of the company.

During the last financial year, the Supervisory Board paid particular attention to the economic development, financial situation, prospects and further strategy of the company, and advised the Executive Board on these topics. Its work in the financial year 2024 focused in particular on supporting the Executive Board in the strategic development of the company and of the MLP Group, implementing further measures to increase efficiency and both assessing and monitoring the opportunity and risk position of the company and the Group.

Due to its diversified positioning, the company and the MLP Group were also less affected overall by economic developments in the financial year 2024 in terms of business development and operating result than was the case in other sectors.

The Supervisory and Executive Boards met regularly in the reporting year for discussions and joint consultations regarding business development, strategy and key events within the company. The Supervisory Board was directly involved in all decisions of fundamental importance to the company. The Executive Board regularly provided the Supervisory Board with written and oral reports in a timely and comprehensive manner on all relevant issues related to corporate planning, strategic development, the business situation, as well as the position and overall development of the Group, including the risk situation, risk-bearing capacity, risk management, regulatory requirements and compliance. The Supervisory Board was able to confirm the correctness of the corporate governance by the Executive Board. In 2024, the Executive Board also reported to and advised the Supervisory Board on the content and anticipated effects of legislative or regulatory proposals at national German or EU level. The Supervisory Board had ample opportunity to review and discuss the information, reports and draft resolutions submitted by the Executive Board. The Chairwoman of the Supervisory Board and the Chairman of the Risk and Audit Committee maintained regular contact with the Executive Board between meetings. Regular face-to-face and virtual meetings and telephone calls were held with the Chief Executive Officer and the Chief Financial Officer. At these meetings, the agenda for the respective meetings of the Supervisory Board and the Committees was agreed and preparations made for the meetings. Alongside this, overarching topics were also discussed. Upcoming decisions were discussed and prepared between the Chairman of the Executive Board and the Chairwoman of the Supervisory Board. The work between the Executive Board and the Supervisory Board was characterised by trusting and responsible actions for the successful further development of the MLP Group.

No personnel changes to the company's Supervisory Board and Executive Board were made in the last financial year. The Supervisory Board at MLP SE held five regular meetings and one extraordinary meeting in the financial year 2024. The aforementioned meetings were all held in person; however, video participation was generally also possible. All members of the Supervisory Board attended all meetings in person or, in exceptional cases, individual members participated via video livestream. The Executive Board generally also informed the Supervisory Board of particularly important or urgent projects outside of the regular meetings. Insofar as necessary, resolutions of the Supervisory Board also took the form of circular resolutions. As and when required by the Supervisory Board, discussions were also held at the beginning or end of Supervisory Board or Committee meetings without the participation of the Executive Board. The evaluation of the Executive Board and the self-evaluation of the Supervisory Board were also performed during one such meeting.

In addition to this, two meetings of the Risk and Audit Committee were also held in this year. All committee members took part in each of these meetings. The Nomination Committee convened on three occasions in the past financial year. All committee members took part in each of these meetings. During the last financial year, a single meeting of the Compensation Oversight Committee was convened, with full attendance by all its members.

The following table offers an overview of the members of the Supervisory Board taking part in the meetings of the Supervisory Board and its Committees in 2024, which was consistently 100% last year:

Participation* in %
Supervisory Board meeting MLP SE
Sarah Rössler (Chairwoman of the Supervisory Board) 6/6 100
Dr Andreas Freiling (Vice Chairman) 6/6 100
Ursula Blümer 6/6 100
Bernd Groß 6/6 100
Matthias Lautenschläger 6/6 100
Monika Stumpf 6/6 100
Nomination Committee MLP SE
Sarah Rössler (Chairwoman) 3/3 100
Bernd Groß 3/3 100
Matthias Lautenschläger 3/3 100
Monika Stumpf 3/3 100
Risk and Audit Committee MLP SE
Dr Andreas Freiling (Chairman) 2/2 100
Ursula Blümer 2/2 100
Matthias Lautenschläger 2/2 100
Sarah Rössler 2/2 100
Compensation Oversight Committee MLP SE
Sarah Rössler (Chairwoman) 1/1 100
Dr Andreas Freiling 1/1 100
Matthias Lautenschläger 1/1 100
Monika Stumpf 1/1 100

In addition, the Chairwoman of the Supervisory Board and the Chief Executive Officer met regularly in the 2024 financial year, in particular to discuss the course of business, special business transactions, regulatory changes and the overall situation of the Group, yet also the impact of economic policy trends. The Chairwoman of the Supervisory Board regularly informed the other members about the content of these discussions.

Supervisory Board meetings and important resolutions

Set against the backdrop of the difficult situation in the (nursing care) real estate markets and its impact on the company, the Supervisory Board in particular addressed the situation of the subsidiary DI Deutschland.Immobilien AG during an extraordinary Supervisory Board meeting on January 15, 2024, discussing potential options and the further procedure for capitalising the company. In a resolution passed by way of circulation, the Supervisory Board at MLP SE subsequently gave its approval on March 5, 2024 for implementation of restructuring proceedings at DI Deutschland.Immobilien AG.

The subject of the Supervisory Board meeting held on March 20, 2024 was the audit and adoption of the annual financial statements – prepared by the meeting of the Risk and Audit Committee – as well as the audit and approval of the consolidated financial statements as of December 31, 2023. Following a detailed discussion, the Supervisory Board adopted the annual financial statements and approved the consolidated financial statements as of December 31, 2023. It also approved the separate non-financial report. In addition to this, the Supervisory Board also reviewed the appropriateness of the Executive Board compensation – as required in accordance with the German Corporate Governance Code (GCGC) – as well as the variable compensation components of the Executive Board for the financial year 2023 and approved these. The proposed resolutions for the company's Annual General Meeting, which was held as a virtual event, represented another item on the agenda.

The regular Supervisory Board meeting on May 14, 2024 focused primarily on discussing the results and business development from the first quarter of 2024.

The results of the second quarter, the business development in the first half of the year, as well as the reporting of the Internal Audit and Risk Controlling departments were all on the agenda of the regular Supervisory Board meeting held on August 13, 2024. Another focus was succession planning for the Executive Board at MLP SE. The Supervisory Board resolved to appoint Mr Jan Berg as a member of the Executive Board with effect from May 1, 2025 to succeed Manfred Bauer, who is retiring. The Supervisory Board also resolved that it intends to appoint Ms Angelika Zinkgräf as a member of the Executive Board with effect from December 1, 2025 and to create a new mandate with responsibility for Human Resources, Compliance and Internal Audit.

The November meeting held on November 13, 2024 focused on the operating results for the third quarter and the first nine months of the 2024 financial year. Alongside this, compliance with the provisions of the German Corporate Governance Code (GCGC) in the MLP Group, the resolution on the Declaration of Compliance pursuant to § 161 of the German Stock Corporation Act (AktG) was a key topic on the meeting's agenda. Extensive reporting was provided on the corporate governance process, and the current Declaration of Compliance was approved. The Supervisory Board also addressed the evaluation of the Executive Board and the self-evaluation of the Supervisory Board, which had been prepared by the Nomination Committee.

In the meeting on December 11, 2024 the Supervisory Board addressed in detail and approved the strategy and budget of both the Group and the company for the financial year 2024. The Supervisory Board also approved the Executive Board resolution regarding a share buyback programme. In addition to this, the Supervisory Board appointed Ms Angelika Zinkgräf as a member of the Executive Board with effect from December 1, 2025.

Supervisory Board committees

The Supervisory Board was regularly informed of the work carried out by its committees in 2024.

The members of the Risk and Audit Committee in the 2024 financial year were Dr Andreas Freiling (Chairman of the Committee), Ms Ursula Blümer, Mr Matthias Lautenschläger and Ms Sarah Rössler. The Risk and Audit Committee held two regular meetings in the financial year 2024. Representatives of the audit firm also took part in some of the meetings, providing the committee with detailed reports. In the presence of the auditors, the Chief Executive Officer and the Chief Financial Officer, the Risk and Audit Committee discussed the financial statements of MLP SE and the MLP Group, as well as the proposed appropriation of earnings. Furthermore, the relationship to the auditor, proposals for selecting the auditor, audit fees, audit engagement and monitoring of the auditor's independence were the subject of extensive discussions. The Risk and Audit Committee received regular reports on the work of the Internal Audit and of the Compliance and Risk Management department and was informed on legal and regulatory risks and risks to reputation. Among other things, the meeting held in August focused on risk reporting, the report on reviewed capital planning, and on discussing the guidelines for the subsequent year's risk strategy. At this meeting, the Committee also decided that the audit should be reassigned as part of a tendering process.

The members of the Nomination Committee in the 2024 financial year were Ms Sarah Rössler, who was also Chairwoman of the Nomination Committee, Mr Bernd Groß, Mr Matthias Lautenschläger and Ms Monika Stumpf. The Nomination Committee convened on three occasions during the reporting period and addressed the topic of long-term succession planning. The Committee reviewed the requirements for candidates to succeed Mr Manfred Bauer here. During its meeting held in August 2024, the Committee recommended to the Supervisory Board that Mr Jan Berg be appointed to the Executive Board with effect from May 1, 2025. The Supervisory Board also resolved that it intends to appoint Ms Angelika Zinkgräf as a member of the Executive Board with effect from December 1, 2025 and to create a new mandate with responsibility for Human Resources, Compliance and Internal Audit. The Supervisory Board Committee also addressed preparations for the evaluation of the Executive Board and the self-evaluation of the Supervisory Board.

The members of the Compensation Oversight Committee in the 2024 financial year were Ms Sarah Rössler (Chairwoman of the Compensation Oversight Committee), Dr Andreas Freiling, Mr Matthias Lautenschläger and Ms Monika Stumpf. The Compensation Oversight Committee held one meeting in the 2024 financial year. Among other things, this was to discuss the appropriateness of Executive Board compensation.

Corporate governance

During the financial year the Supervisory Board also addressed the application of the corporate governance principles.

In the past year, the Supervisory Board dedicated its meeting on November 13, 2024 to in-depth discussions on the requirements of the revised German Corporate Governance Code (GCGC) in its version from April 28, 2022.

The meeting held on November 13, 2024 was used to discuss the recommendations of the GCGC and the Declaration of Compliance. The Supervisory Board consulted with the Executive Board regarding the requirements of the GCGC and the deviations that are to be disclosed as per the Declaration of Compliance pursuant to § 161 of the German Stock Corporation Act (AktG). The objective here was to determine which requirements the Executive Board and Supervisory Board have satisfied or will satisfy in future to secure compliance with the recommendations in the form presented in the Declaration of Compliance. In November, the Supervisory Board and Executive Board issued a Declaration of Compliance pursuant to § 161 of the German Stock Corporation Act (AktG) and made it permanently available to the shareholders via its website.

In 2024, the Board also reviewed the efficiency of its own activities using the evaluation form provided to the members of the Supervisory Board in good time before the meeting. Among other things, the Supervisory Board also reviewed the requirements placed on the members of the Supervisory Board, the procedures in the Supervisory Board, the information flow between the Committees and the Supervisory Board, as well as the timeliness of the reporting by the Executive Board to the Supervisory Board and the adequacy of its content. Measures aimed at increasing efficiency were discussed and established.

The Supervisory Board also regularly addresses potential conflicts of interest among the members of the Supervisory Board. To this end, the members of the Supervisory Board are surveyed at least once a year to determine whether any such conflicts existed or still exist. Based on our understanding, and in accordance with the legislator, a conflict of interest exists if there is reason to suspect that any member of the Supervisory Board is taking decisions not solely in the interests of the company, but also potentially seeking to pursue personal or third-party interests. Following the review by the Supervisory Board there were no conflicts of interest in this sense in the last financial year. A summary of further corporate governance aspects at MLP, including presentation of the Declaration of Compliance from November 13, 2024, can be found in the declaration on governance issued by the Executive Board and Supervisory Board. All relevant information is also available on our homepage at www.mlp-se.com.

As required by the German Corporate Governance Code, the members of the Supervisory Board undertook the training and further education measures required for their duties on their own responsibility in order to maintain the necessary expertise. In this endeavour, they are adequately supported by the company. To this end, the members of the Supervisory Board once again attended various external training events in 2024 to refresh and maintain their individual expertise. The costs associated with this were borne within the limits of the provisions of the articles of association. The company, in consultation with the Supervisory Board, also held a training course on artificial intelligence for the entire Supervisory Board on June 11, 2024, as well as a training course on September 29, 2024, in which the accounting of goodwill under IFRS was in particular presented.

Audit of the annual financial statements and consolidated financial statements for 2024

The financial statements and the joint management report of MLP SE as of December 31, 2024 have been compiled by the Executive Board pursuant to the German Commercial Code (HGB). The consolidated financial statements and the joint management report as of December 31, 2024 have been compiled pursuant to § 315a of the German Commercial Code (HGB) in line with international financial reporting standards (IFRS), as they are applied in the EU. As of December 31, 2024, BDO AG Wirtschaftsprüfungsgesellschaft, Hamburg audited the financial statements and the joint management report of MLP SE in accordance with the principles of commercial law, as well as the consolidated financial statements and the joint management report in accordance with the principles of IFRS, issuing an unqualified audit opinion in each case. The auditor performed the audit in compliance with the basic principles of sound auditing practices determined by the Institut der Wirtschaftsprüfer (German Institute of Auditors).

Meetings between the Chairman of the Risk and Audit Committee and the Chairwoman of the Supervisory Board and the auditor's representatives took place during the audit of the financial statements, during which the auditor's findings were reported. These votes and their findings were then also reported to the Risk and Audit Committee and the full Supervisory Board. The financial statements, together with the joint management report, the auditor's reports and the Executive Board's proposal for use of the unappropriated profit were made available to all Supervisory Board members in good time. The Risk and Audit Committee of the Supervisory Board reviewed these documents in detail, reported to the Supervisory Board on its audit and explained its audit opinion. The auditor also reported on the key results of the audit and on the fact that there are no significant weaknesses in the internal monitoring system, the risk management system nor with regard to compliance. The Risk and Audit Committee also reviewed the risk management system, the accounting processes and the effectiveness of the internal monitoring systems, risk management and auditing systems, as well as the relationship to the auditor, the proposals for selection of the auditor, auditor's fees, the audit engagement and monitoring of the auditor's independence, as well as the additional services performed by the auditor. The Supervisory Board also checked and discussed the documentation and reports in detail. Within this scope, the Supervisory Board also addressed the key audit matters described in the audit opinion, including the audit procedures undertaken by the auditor on the basis of the auditor's report.

The auditor's reports were comprehensively scrutinised by the Supervisory Board during the Supervisory Board meeting held on March 26, 2025. The Chairman of the Risk and Audit Committee provided information on the auditor's reporting from the meeting of the Risk and Audit Committee, concentrating in particular on the scope, the key focuses, as well as the major findings of the audit and going into particular detail regarding the key audit matters and the audit procedures employed. With regard to the individual financial statements of MLP SE, these key audit matters, as defined and verified by the auditor, encompassed the "impairment of shares in affiliated companies", while with regard to the consolidated financial statements of MLP SE they encompassed the "impairment testing of goodwill" and the "recognition of commission income". At this meeting, the Executive Board also explained the financial statements of MLP SE and of the MLP Group, the risk management system, the accounting processes and the effectiveness of the internal monitoring, risk management system, audit system and of the compliance, as well as giving detailed reports on the scope, focuses and costs of the audit.

The Supervisory Board concurred with the outcome of the auditor's audit and, on the basis of the final outcome of the Risk and Audit Committee's audit and its own audit, found no grounds for raising an objection. Accordingly, at its meeting on March 26, 2025, the Supervisory Board approved the annual financial statements and the joint management report MLP SE, as well as the consolidated financial statements and the joint management report in accordance with IFRS prepared by the Executive Board. The annual financial statements are therefore adopted. Alongside this, the Executive Board is also required to submit a report on a non-financial declaration or a non-financial Group declaration as per § 289b, § 315b of the German Commercial Code (HGB). The Supervisory Board reviewed the non-financial report – prepared by a meeting of the Risk and Audit Committee - and did not find any objections.

After performing its own reviews, the Supervisory Board agreed with the Executive Board's proposal to pay a dividend of €0.36 per share for the financial year 2024. The equity and liquidity situation, future regulatory requirements and financial planning, as well as the shareholders' interest in an appropriate dividend were included and weighed up against one another in its considerations.

The Supervisory Board would like to thank the Executive Board, the Management of the respective Group companies, as well as all employees and consultants of the MLP Group for their exemplary personal commitment and achievements in the financial year 2024.

Wiesloch, March 2025

The Supervisory Board

Sarah Rössler

Chairwoman of the Supervisory Board

Investor Relations

The MLP share

The stock market year 2024 was a successful one overall for the MLP share. The financial markets started 2024 with impressive momentum. These developments were attributed to the expected and initial interest rate cuts by leading central banks around the world, economic and inflation trends and the dynamics in the AI sector. In the second quarter of 2024, the stock exchanges in the US and Europe then began to display rather different developments. While the US stock markets reached one record high after another, mainly due to technology stocks, the European stock market barometers consolidated. Several German second-tier and third-tier stocks subsequently performed less well. Indeed, many suffered from the weak domestic economy.

In the first few months of the year, the MLP share price largely fluctuated between €5.30 and €5.50. The start of April then saw increased interest in the share, which led to price gains up to €5.83.

In mid-May, publication of the results for the first quarter of 2024 led to another significant price jump. The MLP share price rose by more than 15% within a few days and broke through the €6.50 level. Over the course of the year, the share price continued to increase its gains, culminating in a high for the year at €6.57 (closing price) on June 6.

Following the dividend payout at the end of June, the share price struggled to return to its previous level and declined to €5.21 at the beginning of August. Publication of the results for the first half of the year then gave the share new momentum and it was able to neutralise the short-term losses suffered.

However, the €6 mark was not reached again until the start of October. When the full-year targets were raised on October 2, interest in the share then increased again, resulting in strong share price gains. The price subsequently climbed significantly to €6.35. In the past, investors have traditionally adjusted their portfolios in the last few weeks of trading, which has led to profit-taking with the MLP share. A noticeable recovery in the last few trading days helped the share price close at €6.13.

Accordingly, our share recorded positive price performance of 10.6% in 2024. Market capitalisation was €670.2 million at the end of the year.

The financial markets can reflect on a second strong stock market year in a row in 2024. Despite geopolitical and economic uncertainties, the stock markets once again set new records this year. Indeed, Germany's leading index, the DAX, rose by almost 19%. The DAXSector Financial Services Index rose by 14.1%. However, this development was not seen in all indices, especially not in the small-caps and mid-caps. The SDAX, on which MLP is also listed, declined by 1.8% and the MDAX fell even further by 5.7%.

You can find more detailed information on the MLP share on the Internet on our Investor Relations page at https://mlp-se.com/investors/.

2024 2023 2022 2021 2020
Shares outstanding at
the end of the year		 in units 109,334,686 109,334,686 109,334,686 109,334,686 109,334,686
Share price at the
beginning of the year		 in € 5.49 5.16 8.52 5.40 5.61
Share price at the end
of the year		 in € 6.13 5.54 5.14 8.57 5.40
Share price high in € 6.57 6.05 8.70 8.89 5.98
Share price low in € 5.23 4.44 4.44 5.40 3.73
Market capitalisation
at the end of the year		 in € million 670.2 605.7 562.0 937.0 590.4
Average daily turnover
of shares		 in units 34,144 74,906 38,529 50,962 58,920
Dividend per share in € 0.36 1 0.30 0.30 0.30 0.23
Total dividend in € million 39.4 1 32.8 32.8 32.8 25.1
Return on dividend in % 5.9 1 5.4 5.8 3.5 4.3
Earnings per share
(basic)		 in € 0.63 0.44 0.47 0.57 0.40
Earnings per share
(diluted)		 in € 0.63 0.44 0.47 0.57 0.40

Key figures compared to previous year (2020-2024)

1 Subject to the consent of the Annual General Meeting on June 25, 2025

Analyst coverage

In the financial year 2024, the MLP share was covered by four companies. Analysts from Metzler, Kepler Cheuvreux, NuWays and Pareto Securities all cover the share. As of December, 31 2024, all four analysts were recommending purchasing the MLP share. The average target price was €9.18, with individual estimates ranging from €7.50 to €12.00. ODDO BHF was also commissioned to cover the MLP share from January 1, 2025 onwards. Kepler Cheuvreux no longer covers the share at the time of publication of the 2024 Annual Report.

Index inclusion

With its quarterly review of the DAX index families, the German stock exchange issued a notification on March 5, 2024 that MLP SE would be included in the SDAX (small cap DAX) with effect from March 18, 2024. The key criterion for this was the free-float market capitalisation.

Share-based participation programme

The Annual General Meeting most recently authorised the Executive Board and Supervisory Board to buy back treasury shares through its resolution on June 24, 2021. As in previous years, MLP continued its share-based participation programme for MLP office managers and MLP consultants in 2024. In the period from January 2, 2024 to March 5, 2024, a total of 577,202 shares with a pro rata amount of €1.00 each in the share capital were bought back at an average price of €5.37 per share. This corresponds to around 0.53% of our share capital of €109,334,686. The respective buybacks have been published on our company's website at https://mlp-se.com/investors/mlp-share/share-buyback/, where they can still be viewed. Following the transfer of 541,468 shares to the eligible participants, a total of 37,062 shares remained in MLP SE's own portfolio as of December 31, 2024.

Annual General Meeting

MLP SE held its Regular Annual General Meeting for the financial year 2023 on June 27, 2024. The event was held entirely online again. Shareholders were able to follow the entire Annual General Meeting live via the shareholder portal. Shareholders connected electronically to the Annual General Meeting and their proxies were able to speak and ask questions live during the Annual General Meeting by means of video communication. All questions submitted in this form were addressed in full by the Executive Board and Supervisory Board.

All items on the agenda were approved by shareholders. The proposal of both the Supervisory Board and Executive Board on the use of the unappropriated profit for 2023 was accepted with a majority of 99.99%. Accordingly, the proposal to pay a dividend of €0.30 per share was approved. This year's distribution rate was 74% of Group net profit. Discharge was granted to the Executive Board and Supervisory Board with an approval rate of 90.82% and 85.07%, respectively. With a majority of 91.18%, the shareholders also approved the proposals to appoint BDO AG Wirtschaftsprüfungsgesellschaft, Hamburg, as auditor and Group auditor for the financial year 2024, as well as auditor of the Sustainability Report.

The compensation report was accepted with a majority of 73.96%. The Annual General Meeting also approved control and profit and loss transfer agreement with FERI AG with a majority of 99.99%. The resolution on the amendment to § 17 (2) sentence 3 of the company's articles of association with regard to the record date was also approved with a clear majority of 99.99%.

In total, 68.34% of the share capital was represented.

All information on the Annual General Meeting is available at www.mlp-agm.com.

Changes to the shareholder structure

There were no significant changes to the shareholder structure in the financial year 2024. The Lautenschläger family remains the largest single MLP shareholder with a total share of the voting rights of 27.56%. The next largest shareholder is then HanseMerkur Krankenversicherung AG with a 10.03% share of the voting rights. The third largest shareholder is Barmenia Versicherungen a. G., Gothaer Versicherungsbank VVaG, holding a 9.39% share of the voting rights. Barmenia and Gothaer completed the merger of the two companies in September 2024. Since the new company structure is a multi-parent structure, we will in future present Barmenia Versicherungen a. G. and Gothaer Versicherungsbank VVaG as shareholders in the shareholder structure. There were no changes to the respective shareholding.

The free float as defined the German stock exchange was 46.84% as of December 31, 2024.

You can find further information on our homepage at https://mlp-se.com/investors/mlp-share/shareholderstructure/.

Investor relations activities

The goal of our investor relations activities is to establish a continuous and open dialogue with our shareholders, potential investors and the capital market. We are keen to increase investor confidence and help them to assess the value potential of our company. To this end, we provide continuous, timely and transparent information on relevant events and incorporate feedback received from capital market players.

We engage in active exchange with both private and institutional investors at regular capital market events, such as roadshows, capital market conferences and our Annual General Meeting. In 2024, the Executive Board at MLP SE and the Investor Relations team intensified their dialogue with the capital market. In April, we took part in the Metzler Small Cap Days in Frankfurt and organised a roadshow in Paris with the support of NuWays. In August, we organised a virtual roundtable with NuWays. In September, we took part in the Autumn Conference of Equity Forum in Frankfurt. In October, we spoke with local investors in Boston, Chicago and New York during a USA roadshow. This was followed in November by participation in the German Equity Forum organised by Deutsche Börse, the German stock corporation in Frankfurt. At the end of the year, we sought dialogue with investors in London as part of a roadshow accompanied by Metzler.

Alongside direct contact, financial reporting is a key basis for our communication. The Annual Report plays a particularly important part here, as it provides comprehensive and transparent information on all aspects of the company. We also provide information on the latest developments with our quarterly reports and our interim report. As part of this, we also offer an analyst conference in the form of a webcast, during which our Executive Board explains the key developments.

In addition to this, we offer various information on our website at https://mlp-se.com/investors/. There, you also have the option to register for email updates on important events and find our contact details for getting in touch with us directly.

Proposed dividend

The Executive Board and Supervisory Board at MLP SE will propose a dividend of €0.36 per share for the financial year 2024 at the Annual General Meeting to be held on June 25, 2025. This corresponds to a distribution rate of around 57% of Group net profit. Our dividend policy is to pay 50% to 70% of net profit to our shareholders in the form of dividends.

Joint management report

In addition to the MLP Group, the following joint management report also encompasses MLP SE. The figures disclosed in the following have been rounded to one decimal place. When adding or dividing the individual values presented, differences to the reported totals and changes are possible, which were determined based on the exact values. When making forecasts, qualified-comparative forecasts are made. A change from 0% to less than 5% is described as "stable," "at the previous year's level," "virtually unchanged," or similar expressions. A change from 5% to less than 10% is described as "slight". A change of 10% or more is described as "significant". Deviations from this methodology are only possible within a tolerance range of two percentage points or in exceptional cases, but in both cases only if the alternative formulation is more suitable from the company's perspective for conveying a true and fair view. Deviating from this, the forecast for earnings before interest and taxes (EBIT) is calculated on the basis of an interval forecast. Previous year's figures are given in brackets.

FUNDAMENTAL PRINCIPLES OF THE GROUP

Business model

The MLP Group is the partner for all financial matters

With its brands Deutschland.Immobilien, DOMCURA, FERI, MLP, RVM and TPC, the MLP Group is the financial services provider for private, corporate and institutional clients. The MLP Group combines personal and digital services here. Several of the brands also offer selected products, services and technologies for other financial services providers.

  • Deutschland.Immobilien The real estate platform for clients and financial consultants
  • DOMCURA The underwriting agency for financial consultants and consultant platforms
  • FERI Multi asset investment firm for institutional investors and high net worth individuals
  • MLP Financial consulting and banking for discerning clients
  • RVM Risk manager for insurance and provision solutions for SMEs
  • TPC Benefit expert network for enterprises

Since it was founded in 1971, MLP has consistently striven to establish long-term relationships with its clients. A transfer of expertise takes place within the network. The specialists support one another in the areas of research and concept development, as well as in client consulting. This valuable and targeted interaction generates additional value for our clients, for the company and for its shareholders. Economic success also forms the basis for accepting social responsibility.

The views and expectations of our clients always represent the starting point for every consultation in each of these fields. Building on this, we then present them with suitable options in a comprehensible way so that they can make the right financial decisions themselves.

MLP attaches great importance to objective and transparent criteria when selecting partners and products. An analysis and quality check of the providers in the market, as well as their respective products, are performed on the basis of client requirements. We are keen to continually improve and refine the product selection process. In the partner and product selection process, the issue of sustainability now also plays a part as an additional feature.

The qualification of our employees and independent client consultants is of great importance to our company in ensuring the sustained high quality of the consulting services we provide. We consider the qualifications and further training offered at the MLP Corporate University, the company's accredited inhouse training facility, to be a benchmark in the financial consulting sector. You can find more detailed information on this in the chapter entitled "Employees and self-employed client consultants".

Our goal with the MLP School of Financial Education (SoFE), which we founded in 2021, is to make an important contribution to financial education in Germany. Since mid-2022, the training programmes of MLP SoFE have also been accessible to external groups, such as non-group-affiliated consultants. MLP SoFE offers contractors, medical professionals, companies and experts from the financial services sector comprehensive and needs-based financial expertise. As part of the MLP Corporate University, the MLP SoFE offers a comprehensive training programme with individual learning paths.

Factors affecting business development

Economic developments in Germany have a significant impact on the business model of the MLP Group, as the company generates a vast majority of its revenue in this country. Economic growth, developments on the labour market, wage levels and the general savings rate are particularly important influential factors here. Likewise, the interest rate level is an important factor, particularly for our banking business. These are described in further detail in the economic report and the forecast.

The results of operations is significantly shaped by market conditions in the consulting areas of wealth management, real estate, loans & mortgages, old-age provision, health insurance, and non-life insurance, which we analyse in the economic report and further address in the forecast report.

Another important factor is the regulatory environment, which is also examined in more detail in the economic report and the forecast.

Corporate structure

MLP Group

The headquarters of the MLP Group are in Wiesloch. MLP SE (Holding), MLP Finanzberatung SE and MLP Banking AG all have their internal divisions at this location. In addition to this, we are represented by our client consultants, branch offices and university teams in all German urban centres, including all important university locations. DOMCURA AG has its headquarters in Kiel. In addition to its headquarters in Bad Homburg vor der Höhe, the FERI Group has offices and companies in Düsseldorf, Hamburg, Munich, Luxembourg, Vienna and Zurich. RVM GmbH is based in Wiesloch.

MLP SE

Within the MLP Group central control tasks are performed by the Group's parent company, MLP SE. These include the five subsidiaries DOMCURA AG, FERI AG, MLP Finanzberatung SE, MLP Banking AG and RVM GmbH. The business divisions each carry end-to-end accountability for results.

MLP SE gained legal approval to operate as the parent financial holding company of the MLP Group pursuant to § 2f (1) in conjunction with (3) of the German Banking Act (KWG) by authorisation letter dated June 30, 2022. MLP SE is therefore the superordinate undertaking of the MLP Group for regulatory purposes in accordance with § 10a (2) sentence 2 of the German Banking Act (KWG) in conjunction with Art. 11 (2) subparagraph 1 Letter a of Regulation (EU) No. 575/2013 (Capital Requirements Regulation or CCR). Accordingly, it is responsible for regulatory consolidation and fulfilment of regulatory requirements and risk management at Group level. Accordingly, the company is supervised directly by the Federal Financial Supervisory Authority (BaFin).

MLP Finanzberatung SE

MLP Finanzberatung SE is a German financial consulting company which, as a broker, can focus its attention on clients. We combine external products and selected services of the MLP Group, selecting the most suitable product options for our clients from the broad scope of offers in the market.

The business activities of MLP Finanzberatung SE focus on advising private and corporate clients on financial matters and the brokerage of suitable products. These fields of consulting are closely intertwined and complement each other. Among others, they include real estate brokerage, loans & mortgages, oldage provision, health insurance and non-life insurance.

As a specialist in company benefits, the TPC division within MLP Finanzberatung SE offers companies and associations consultancy services under the TPC brand, covering topics ranging from old-age provision, health, flexible lifelong working, family, mobility, convenience to in-kind contributions. Throughout Germany and also internationally – from needs analysis to individual concept development and implementation, and continuous reviewing of existing company benefit systems. The key focus here is on providing consulting services to small and medium-sized companies from various sectors, as well as employer consulting services to tax advisers, auditors, solicitors, medical professionals and architects. In portal solutions for induction, communication and administration, employers and employees find all relevant information about their benefits online, with the option for personal consultation - including video consultations if desired. Employees will also have dedicated access to their contracts via this portal.

The majority stake in DI Deutschland.Immobilien AG, which is based in Hanover (Deutschland.Immobilien), and which was acquired in 2019, has significantly expanded both the expertise and the portfolio in the real estate sector. In the financial year 2024, MLP Finanzberatung SE became the sole shareholder of Deutschland.Immobilien AG and its subsidiaries. Deutschland.Immobilien is an independent real estate platform covering all investment property classes with many years of experience in the sale of such properties. The company is also engaged in project development for senior citizen housing. Acquisition of land and the subsequent development, planning, realisation and sale of the projects sit at the heart of this.

Alongside direct brokering of real estate to clients, sales via external sales partners also play a key role at Deutschland.Immobilien. Sales partners can use the real estate portal of Deutschland.Immobilien to process all steps, from collecting information, producing estimates and making reservations right through to the actual sale and commission calculation. Deutschland.Immobilien's partner network includes real estate brokers, from individual consultants to medium-sized and large sales companies.

Further subsidiaries of MLP Finanzberatung SE are ZSH GmbH Finanzdienstleistungen (ZSH), Heidelberg, which is also registered as an insurance broker, and MLPdialog GmbH, Bad Segeberg. The wholly owned subsidiary MLP Startup GmbH, Wiesloch, was founded in the first quarter of 2023. It acts as a training company for the consultant trainee model. Another holding is MLP Hyp GmbH, Wiesloch, which we operate together with the mortgage broker Interhyp AG in Munich.

In addition MLP Finanzberatung SE has a stake of 95.76% in pxtra GmbH and 81.1% in Uniwunder GmbH.

MLP Banking AG

MLP Banking AG, which is based in Wiesloch, offers its clients banking services with a combination of face-to-face consulting and online services. The target group is primarily private clients, although in some cases also corporate clients, who are offered account and credit card products, loans and wealth management solutions.

MLP Banking AG assumes the following role within the MLP Group:

  • Part of a full-scope financial consulting offer provided by MLP consultants
  • Provider of accounts/credit cards, deposit models and financing solutions
  • Holder of special expertise in the fields of wealth management and financing, particularly for the target group of medical professionals
  • Liability umbrella for MLP consultants and the central service provider for regulatory issues, loans and payment transactions

MLP Banking AG has a full banking licence and, as a CRR financial institution, is supervised both by the Federal Financial Supervisory Authority and the European Central Bank (ECB).

FERI AG

Based in Bad Homburg, FERI AG operates as a multi asset investment firm, providing investment management, investment consulting, and fund solutions to institutional investors, wealthy private clients, large family offices, and foundations. Well-founded research always forms the basis for all services offered.

FERI has 280 employees, serving more than 300 private and over 200 institutional clients. In the Investment Management business segment, FERI AG offers a broad spectrum of multi asset management and wealth management services for both institutional and private investors. These services range from the development, implementation and management of individual investment strategies, right through to quantitative risk spreading and control. The Investment Consulting area offers long-term advice to institutional investors. The CIO Office prepares economic forecasts and individual asset allocation analyses, which form an important basis for developing client-oriented investment strategies. The Private Clients division supports and advises high net worth individuals and investors. Alongside wealth management, family office services are also offered for high net-worth families.

The FERI Cognitive Finance Institute, which was founded in 2016, acts as a strategic research centre and creative think tank within FERI. It has a clear analytical focus on innovative method development for long-term (mega) trends and derivable aspects for economic and capital market research.

As the central competence centre, the FERI SDG Office has been managing individual consulting on sustainable investment solutions and strategic investments for future-oriented and sustainable investment strategies since 2019.

FERI (Schweiz) AG offers wealth management and consulting services for private investors and institutional clients from its Zurich office. It also acts as an "innovation hub" for development and implementation of new investment approaches and fund solutions.

FERI Trust (Luxembourg) S.A., Luxembourg, acts as the capital management company for mutual funds and alternative investment funds. In addition to this, it coordinates the entire fund structuring and fund floating process as the fund administrator.

DOMCURA AG

DOMCURA AG, with its registered office in Kiel, was founded in 1980 and operates as an underwriting agency. It specialises in non-life insurance and, above all, in the development and management of residential building insurance policies for the German market. For example, the single-family home insurance policy it offers regularly receives awards from renowned institutions and reputed rating agencies. In 2024, DOMCURA presented "Kim", an AI-powered employee capable of independently processing claims. The company's products are currently used by more than 5,000 insurance brokers and insurance sales agents. DOMCURA has been part of the MLP Group since 2015.

RVM GmbH

The RVM Group is one of the leading technical industrial insurance brokers in Germany and specialises in custom insurance solutions for small and medium-sized companies from almost all sectors. It supports around 4,500 companies in all corporate insurance matters – both nationally and internationally. It also maintains an international presence via the worldwide unisonSteadfast AG broker network.

Within the MLP Group, the RVM Group is the contact for new business with small and medium-sized industrial and corporate clients with revenue of more than €5 million (or an annual net premium of at least €50,000) and for all corporate insurance issues (excluding old-age provision).

Changes in corporate structure

Compared to the fundamental principles of the Group described in the 2023 MLP Annual Report the following changes occurred during the reporting period.

At the end of the financial year 2023, the shareholders of DIFA Research GmbH, Berlin, in which MLP Finanzberatung SE, Wiesloch holds a 49% stake, had already mutually agreed to dissolve the company at the end of December 31, 2023. The company has been in liquidation since then. This was entered into the commercial register of the company on January 2, 2024.

With effect from January 1, 2024, MLP Finanzberatung SE acquired further shares in Uniwunder GmbH, Dresden, and now holds an 81.1% stake in the company. The entry into the respective commercial register was made on January 9, 2024. The first-time consolidation of the company took effect on January 1, 2024.

On March 27, 2024, the Annual General Meeting of FERI Management AG, Bad Homburg v. d. Höhe, approved a capital increase of the capital reserves by €10.0 million. The payment was also made on March 27, 2024.

With economic effect from April 29, 2024, MLP Finanzberatung SE increased its shareholding in DI Deutschland.Immobilien AG, Hanover, from 75.1% to 100%.

Also in the second quarter of 2024, FERI AG, Bad Homburg v. d. Höhe, concluded a merger agreement with FERI Management AG which took legal effect on April 30, 2024. The merger of FERI Management AG with and into FERI AG was also entered into the commercial register of the absorbing company on April 30, 2024.

MLP SE, Wiesloch, concluded a control and profit and loss transfer agreement with FERI AG, Bad Homburg v. d. Höhe, on April 30, 2024. The control and profit and loss transfer agreement only comes into effect following approval of the Annual General Meetings of MLP SE and of FERI AG and its entry into the commercial register of FERI AG. The respective Annual General Meetings have approved the agreement, and it was subsequently registered with the company's commercial register on July 22, 2024.

The control and profit and loss transfer agreement with FERI AG, formerly FERI Trust GmbH, Bad Homburg v. d. Höhe, was put in place following the merger of FERI Management AG with and into FERI AG, which resulted in the expiry of the previous control and profit and loss transfer agreement between MLP SE and FERI Management AG.

RVM Versicherungsmakler GmbH, Eningen unter Achalm, has concluded a merger agreement with Jahn & Sengstack GmbH, Hamburg, which took legal effect on May 3, 2024. The merger of Jahn & Sengstack GmbH with and into RVM Versicherungsmakler GmbH was entered into the commercial register of the latter company on May 3, 2024.

On June 24, 2024, Steintor 71. V V GmbH, Bonn, was acquired by Projekte Deutschland.Immobilien GmbH, Hanover. The registered office was relocated to Hanover and the company was renamed Projekte Deutschland.Immobilien Chemnitz GmbH. The transaction was entered in the company's commercial register on July 5, 2024. With contractual effect from August 21, 2024, 49.0% of the shares were sold to factum Immobilen AG, Mainz. This was also followed by relocation of the registered office to Mainz. The sale of the shares was entered in the company's commercial register on October 10, 2024, the same day the transaction became economically effective.

Within the RVM Group, RVM Versicherungsmakler GmbH sold its shares in Allkuranz Versicherungsmakler GmbH & Co KG, Münster, with contractual effect from July 9, 2024. In addition, Erich Schulz GmbH, Hamburg, was merged with and into Hans L. Grauerholz GmbH, Hamburg, as per the merger agreement of July 11, 2024. The merger was entered into the commercial register of the absorbing company on July 24, 2024.

Within the Deutschland.Immobilien Group, an 89.9% stake in Zehnte Projekte 2 Deutschland.Immobilien GmbH, Hanover, was sold under an agreement dated August 20, 2024, thereby reducing the stake from 100% to 10.1%. The entry into the company's commercial register was completed on September 10, 2024. As a result of the sale of shares, the company was deconsolidated with effect from August 31, 2024.

By resolution of September 13, 2024, FERI AG approved a capital increase of €5.0 million through a circular resolution. The payment was made on September 27, 2024.

With contractual effect from October 10, 2024, MLP Finanzberatung SE increased its shareholding in pxtra GmbH, Rostock, from 78.50% to 95.76%. This was entered into the company's commercial register on November 7, 2024. It was preceded by a capital increase at pxtra GmbH, which was entered into the company's commercial register on October 17, 2024.

With contractual effect from November 25, 2024, DOMCURA AG increased its shareholding in asspario Versicherungsdienst GmbH, Bad Kreuznach, from 51% to 100%. The entry in the respective commercial register was made on December 27, 2024.

By resolution of December 2, 2024, FERI AG approved a capital increase of €2.5 million through a circular resolution. The payment was made on December 4, 2024.

Within the Deutschland.Immobilien Group, an 89.9% stake in Sechste Projekte Deutschland.Immobilien GmbH, Hanover, was sold with the conclusion of the contract on November 27, 2024, reducing the stake from 100% to 10.1%. The company was entered in the commercial register on January 9, 2025. As a result of the sale of shares, the company was deconsolidated as of December 31, 2024.

Furthermore, supplemental agreements to the share transfer and purchase agreements concluded in the 2021 financial year were executed for Seniorenzentrum Albstadt GmbH and Seniorenwohnpark Ehingen GmbH, both based in Bocholt, and additional agreements were revised. As a result of the new agreements concluded with the purchaser in the financial year 2024, MLP has lost control over these two project companies. The two companies were deconsolidated as of December 31, 2024.

By resolution of December 30, 2024, FERI (Luxembourg) S.A. approved a capital increase of €2.5 million in the form of an extraordinary general meeting. The increase is made from own funds/company funds. The payment is still outstanding.

Changes in segment presentation

In the reporting year 2024, there were no changes to the way the segments are presented.

Executive Bodies and membership changes

The Executive Board at MLP SE continues to comprise three members. The positions on the Board are held by Dr Uwe Schroeder-Wildberg (Chief Executive Officer), Manfred Bauer (Products and Services) and Reinhard Loose (Finance).

However, MLP announced on August 13, 2024 that Manfred Bauer, a longstanding member of the Executive Board at MLP SE with responsibility for Products and Services, has decided that he will no longer be seeking to extend his contract for reasons of age after it expires on April 30, 2025. In the course of appointing a successor to the Executive Board, an additional board division will be created and the division previously held by Manfred Bauer will be changed.

Jan Berg, who currently holds the position of Spokesman of the Executive Board at MLP Finanzberatung SE, will be appointed to the Executive Board at MLP SE on May 1, 2025 in addition to his current role. One key focus here will be on the corporate client business of the MLP Group. At holding company level, he will in future also assume responsibility for the Industrial Broker and DOMCURA segments, as well as performing a coordinating role with regard to product managements at the individual companies.

Angelika Zinkgräf, currently Head of Human Resources at MLP Finanzberatung SE, is set to assume responsibility for the new Human Resources, Compliance and Internal Audit division. On September 1, 2024, Angelika Zinkgräf was initially assigned general power of attorney for personnel. At its meeting in December 2024, the Supervisory Board then appointed Ms Angelika Zinkgräf as a member of the Executive Board with effect from December 1, 2025.

The Supervisory Board of MLP SE, whose responsibilities include the supervision of the Executive Board under German law, comprises six members. The shareholder representatives are: Sarah Rössler (Chairwoman), Dr Andreas Freiling (Vice Chairman), Matthias Lautenschläger and Bernd Groß. The employee representatives are: Monika Stumpf and Ursula Blümer. There were no changes to the composition of the Supervisory Board in the 2024 reporting year.

Control system

Group-wide controlling

The MLP Group employs comprehensive planning and control systems. Starting from our strategy and the estimates regarding future external framework conditions, we draw up target values for key control metrics in the strategic and operating planning process. Any deviations from our targets then become transparent within the scope of ongoing controlling processes. Based on these developments, we then derive actions for our corporate management. We also continually monitor developments in the market and the competitive environment.

The Executive Committee (Execom) holds regular meetings in order to coordinate Group activities and ensure an efficient exchange of information relevant for controlling purposes. Alongside the members of the Executive Board at MLP SE, this Executive Committee also includes representatives from the Group's business units. The strategies of the business segments are also discussed in this Committee and harmonised with regard to the Group's overall strategy. Uniform strategic target visions are defined for the Group as a whole and all Group segments. These are then used to coordinate and specify the key long-term targets.

The following overview illustrates which consulting fields and competence fields contribute to revenue development in the respective business segments. In light of the strategic advancement of the MLP Group in recent years, the company has focussed on refining its revenue presentation for the public to ensure a more audience-focused approach. The three competence fields of Wealth, Life & Health and Property & Casualty represent the core here. The existing consulting fields, as well as the interest rate business, are all being transferred to one of these three competence fields. The Wealth competence field comprises wealth management, the interest rate business, as well as real estate brokerage and loans & mortgages. The Life & Health competence field includes both old-age provision and health insurance. Non-life insurance is part of the Property & Casualty competence field. The activities not covered by these segments include the real estate development business and so-called other commission and fees. These competence fields are used solely for external communication. The MLP Group continues to manage its operations internally according to the established consulting fields and business segments.

Financial
Consultancy		 Banking FERI DOMCURA Industrial
Broker		 Deutschland.
Immobilien
Wealth competence field x x x x
Wealth management x x x
Interest rate business x
Real estate brokerage x x
Loans and mortgages x x
Life & Health competence field x x
Old-age provision x x
Health insurance x x
Property & Casualty competence
field		 x x x
Non-life insurance x x x
Other x x x x
Real estate development x
Other commission and fees x x x

Allocation of consulting fields and competence fields to the business segments

The Executive Board of MLP SE has specified a risk strategy that is consistent with the business strategy and the risks resulting from it. The risk strategy encompasses the objectives of risk management for key business activities, as well as the measures for achieving these objectives. To this end, risk management is permanently anchored in MLP's corporate management. The members of the Executive Board, general managers of Group companies and business unit leaders are responsible for detecting and classifying risks as quickly as possible. You can find further information on risk management in the chapter entitled "Risk and opportunity report".

Financial performance indicators

The Executive Board at MLP SE assesses the development of the Group on the basis of established controlling parameters. As key indicators of the business development recorded by the MLP Group, the earnings before interest and taxes (EBIT) and the revenue generated by the group are the key controlling parameters and performance indicators for the MLP Group's business development. Accordingly, these indicators are used for steering purposes. Alongside this, the Executive Board also receives regular information on the macroeconomic, political and legislative factors that influence business performance. We require profitable growth and sustainable development of earnings in order to achieve a sustainable increase in company value and expand our market position.

Non-financial performance indicators

The incorporation of non-financial performance indicators enables a comprehensive evaluation of the impact of activities, encompassing both external and internal spheres of the company. The MLP Group currently uses two non-financial performance indicators: CO2 emissions per capita and proportion of women in management positions.

The CO2 emissions of our own business operations are based on the requirements of the Greenhouse Gas Protocol (Scope 1-3) and include the emissions of all fully consolidated companies in the regulatory scope of consolidation. CO2 emissions per capita include all employees and consultants as of December 31 of the respective financial year.

The proportion of women in management positions includes all female employees in disciplinary management positions. The executives of all fully consolidated companies in the regulatory scope of consolidation as of December 31 of the respective financial year are included in the count.

Research and development

Since our consulting firm is a service provider, we are not engaged in any research or development in the classic sense. We also make other resources available, for example to develop our own software or refine acquired software. Among others, the DOMCURA Group is already actively integrating artificial intelligence into its business processes here. The FERI Cognitive Finance Institute also operates as a strategic research centre and creative think tank within the FERI Group, with a clear focus on long-term aspects of economic and capital market research, as well as asset protection. In wealth management field, FERI and MLP are working together to evaluate how relevant digital assets – such as existing crypto currencies and asset classes where physical trading is currently presented with challenges – can in future be taken into account quickly and agilely in consultancy and portfolio structuring processes within the scope of a platform approach. Alongside this, the DOMCURA Group has also been involved in the development of new insurance products for years.

Overall economic climate

The German economy remains in a weak phase. According to FERI Investment Research (FERI), Germany has developed from Europe's growth engine to a limiting factor in recent years. In the past, the German economy benefitted from the strong position enjoyed by industry and its pronounced export orientation, particularly due to the dynamic development of the Chinese market. In the fundamentally changed geopolitical situation, these factors are becoming less relevant or are even developing into a disadvantage, especially as the automotive industry, an important pillar of German industry, came under particularly strong pressure in the reporting year. The German economy continued to stagnate in 2024, with economic performance remaining at the level seen at the end of 2019.

According to FERI, the price-adjusted gross domestic product (GDP) declined by -0.2% in 2024 over the previous year. Based on this, Germany was the poorest performing of all leading economies in Europe.

The labour market in Germany was increasingly impacted by the ongoing economic downturn in 2024. When measured against the weak economy, however, it was stable. According to data published by Germany's Federal Employment Agency, the average number of registered jobseekers in 2024 rose by 178,000 year-on-year, reaching 2.787 million individuals. This corresponds to an unemployment rate of 6.0% (2023: 5.7%). In contrast, the labour market for academics remains stable.

Gross wages and salaries in Germany increased by 5.5% in the reporting year according to the Federal Government's 2025 Financial Report (2023: 6.6%).

According to data provided by FERI, the savings rate in Germany was 11.5% in 2024 (2023: 10.4%).

The inflation rate normalised in the reporting year and, based on data provided by FERI, averaged 2.5% for the year (2023: 6.0%). Set against this backdrop, the European Central Bank (ECB) abandoned its restrictive monetary policy and lowered the key interest rate for the eurozone from 4.00% to 3.00% in a total of four reduction steps during the reporting period. The US Federal Reserve also reacted to the developments and lowered its key interest rates in three reduction steps from a range of 5.25% to 5.50% down to 4.25% to 4.50% in the reporting period.

Industry situation and competitive environment

Wealth management

The private monetary assets held by German citizens rose to a new high in the reporting period. According to the German Central Bank (Bundesbank), the wealth of private households, comprising cash, securities, bank deposits, as well as insurance claims, had a total value of €9,004 billion in Q3 2024 – some €1,288 billion above the value from the end of 2023 (€7,716 billion). The wealthiest 10% of households hold more than 70% of net financial assets, while the less wealthy half of all households control just under 1% of financial assets.

According to information made available by the German Association of Investment and Asset Management (BVI e.V.) the German fund industry was managing a record total volume of €4,472 billion at the end of 2024. Net inflows from open-end mutual funds were €36.2 billion and can primarily be attributed to the strong new business with fixed income funds at +€27.4 billion. Equity funds received a net inflow of +€14.7 billion in 2024.

Real estate

Based on estimates of the German Institute for Economic Research, the housing crisis worsened in 2024. High construction prices caused the nominal construction volume in residential construction to fall by around 3.5% in the reporting year, meaning that a total of 300,000 units were completed according to the DZ Hyp study – some 100,000 fewer units than the new construction target defined by the German government. Rents rose by around 5% overall in 2024.

Prices of real estate in Germany stabilised in the 2024 financial year. The Real Estate Price Index of the Association of German Pfandbrief Banks (vdp) was at 178.4 points in Q4 2024, which is 1.8% higher than in Q4 2023.

The nursing properties segment suffered considerably from the difficult environment on the real estate market: According to the latest available figures, the transaction volume for nursing properties and senior residences fell by around 60% to around €1.1 billion in 2023 (2022: €2.9 billion).

The new Growth Opportunities Act (WCG), which came into force in March 2024, provided positive impetus for investors in 2024. The declining balance depreciation method enhances the profitability of investments in Germany's construction and real estate sector. You can find details on this in the section entitled "Competition and regulation".

Loans and mortgages

Based on estimates of the finance broker Interhyp, interest rates for mortgage loans stabilised at a more attractive level again in 2024. Towards the end of the reporting year, mortgage interest rates for loans with a 10-year term settled at an annual low of around 3.3%.

According to data from consulting firm Barkow Consulting, the new mortgage loan volume of German banks surpassed the €50 billion mark in Q3 2024 for the first time since 2022 and reached around €52.6 billion in Q4 2024, reflecting an overall annual increase of 23%. According to Interhyp, the average loan amount taken out in Q3 2024 was €325,000.

Old-age provision

According to the results of the AXA Pension Report 2024, some 37% (2023: 32%) of Germans are making fewer provisions for their retirement on account of the major price increases in recent years. At the same time, the proportion of people who make monthly private provisions has risen to 62% overall (2023: 56%).

The economic environment is having a negative impact on occupational pension schemes. Nevertheless, according to a study conducted by Deloitte, the proportion of respondents who have an employer-financed occupational pension provision plan in place was 49% in 2024 (2023: 44%), which marks a return to the good level last seen in 2022 (50%).

According to data published by the German Insurance Association (GDV e.V.), there was a slight decline of -0.1% in regular life insurance premiums in 2024. Single premiums rose by 10.6% over the previous year. According to the German Insurance Association, life insurers recorded overall premium growth of 2.6 % to around €94 billion in 2024.

Health insurance

According to figures published by the Association of Private Health Insurers, private health insurance (PKV) once again enjoyed growth. The total number of policies rose by around 1.5 million to 39.8 million in 2024. For the seventh year in succession, more people switched from statutory health insurance to private health insurance than vice versa. According to the Association of Private Health Insurers, some 8.74 million individuals had a comprehensive health insurance policy in place in 2024. The number of private supplementary insurance policies rose by 4.0 % to 31.02 million in the reporting year. Based on information provided by ratings agency Assekurata, supplementary dental insurance and occupational health insurance continued to be by far the most popular products.

According to data published by the Association of Private Health Insurers, occupational health insurance once again recorded strong growth in 2024: 56,500 companies in Germany now offer their employees an occupational health insurance policy that is fully financed by the employer; this corresponds to an increase of 43.8% over the previous year. The number of employees benefiting from occupational health insurance rose by 20.0% from 2.10 million to 2.53 million individuals in 2024.

Non-life insurance

Despite a weak economy, many areas of non-life insurance actually recorded high premium growth in the 2024 reporting year. Premiums for building insurance increased by 13.0% in 2024 due to higher construction prices and labour costs. Household contents insurance premiums rose by 4.0%.

In motor vehicle insurance, significant premium adjustments in addition to new business ensured strong growth in the reporting year. Due to the extremely dynamic development in prices for claims settlement – for example as a result of increased vehicle spare parts prices and hourly rates at garages – the German Insurance Association reports that motor insurance premiums rose by 9.9% in 2024 over the previous year.

According to data published by the German Insurance Association, overall premium growth for 2024 in property and casualty insurance was 7.8%.

Competition and regulation

The competitive situation in the German market for financial services did not change significantly for the MLP Group in the financial year 2024 compared to the previous year. The sector remains very heterogeneous and is characterised by trends towards consolidation. The providers include numerous financial service providers, single agents, banks, insurance companies and independent finance brokers, as well as FinTechs and InsurTechs. However, their quality of consulting can vary quite markedly here. Regulations impact market participants in various ways. Accordingly, MLP is affected by a multitude of them.

In terms of its own market position, MLP's private client business is in particular characterised by a comprehensive consulting approach, in which the consultant is also supported by the best-rated tool according to the SWI Institute ("consultant portal"). In this way, MLP endeavours to be at the client's side as a discussion partner for all financial questions and concerns. The offer also includes banking services via MLP Banking AG, which competitors without their own bank are unable to offer. The MLP Group and its brands (FERI, RVM, TPC) are also among the leading providers in their respective markets in the corporate client business.

A fundamental ban on commission in the financial services market is no longer the focus of European legislators. In her draft EU Retail Investment Strategy, EU Commissioner McGuinness abandoned her original plan to introduce such a fundamental ban on commission for the brokerage of financial products in Europe. Consumers will therefore likely continue to benefit from the competition between the fee and commission payment systems.

The former coalition government had worked on the reform of subsidised private old-age provision and also presented an initial draft bill – based on the final report of the corresponding focus group. Following the break-up of the coalition government, however, it now depends on whether and how a new federal government wishes to tackle the reform of subsidised private old-age provision.

The Growth Opportunities Act (WCG) was passed in 2024, improving the incentives for new rented properties. From MLP's perspective, this is welcome news. After all, creating new housing requires more investment above all else. Investment property has once again become somewhat more attractive based on this expanded incentivisation. This forms part of our holistic consulting services and can be an interesting option for many of our client groups.

With regard to sustainability-related reporting by companies, the implementation of regulatory requirements remains highly complex and extensive. In addition, the fact that the Corporate Sustainability Reporting Directive (CSRD) was not transposed into national law in Germany on schedule has led to further uncertainties regarding its applicability.

Overall, regulatory developments were once again challenging in 2024. A gap between generally declining commission income per product and simultaneously rising product and administration costs – combined with increased price sensitivity on the part of clients – can also negatively impact the profitability of the MLP business model. Regardless of this, MLP considers itself to be very well positioned thanks to its broad and strategically diversified business model and corporate structure.

Business performance

Overall performance

In the financial year 2024, MLP set new record levels in terms of total and sales revenue. The Group was once again able to capitalise on the strengths of the strategically optimised positioning it has developed in recent years. Overall, MLP can reflect on good business performance. Thanks to a strong operating performance, total revenue - comprising sales revenue and other income - rose to a new high of €1,066.7 million (€973.5 million), with sales revenues contributing the largest share €1,037.5 million (€941.1 million). Interest expenses rose significantly to €30.2 million (€16.3 million), as did expenses from the commission business at €474.9 million (€426.7 million). In contrast, real estate development expenses declined significantly to €5.1 million (€18.7 million). The three expense items therefore tended to develop in line with the corresponding revenue items. With an increase of 5.0%, administration costs (defined as the sum of personnel expenses, depreciation/amortisation and impairment, as well as other operating expenses) remained at almost the same level as the previous year. EBIT (earnings before interest and taxes) increased significantly to €95.0 million (€70.7 million). This result contributes to the resilience that MLP has built up in recent years by significantly broadening its range of services and thereby also its revenue base.

Development of the competence fields

In 2024, MLP achieved significant growth in the Wealth competence field, which comprises the consulting fields of wealth management, the interest rate business, as well as real estate brokerage and loans and mortgages. Revenue was €520.3 million (€408.5 million). In the Life & Health competence field, which includes both old-age provision and health insurance, MLP recorded stable revenue of €298.0 million (€293.8 million). At €206.4 million (€201.0 million), MLP recorded revenue at roughly the same level as the previous year in the Property & Casualty competence field, which includes the non-life insurance business. The activities not assigned to these competence fields generated revenue of €12.8 million (€37.9 million). These include the so-called other commissions and fees, as well as the reduced real estate development business.

Development of the consulting fields

Broken down by our revenue types, significant increases in revenue (37.5%) were achieved in the interest rate business in an environment of persistently high interest rates. In line with market developments, however, revenue from real estate development declined significantly (-84.9%). The decline in real estate development in 2024 can also be attributed to our cautious approach in this environment. We had temporarily halted the launch of new projects in the last financial year and therefore actively reduced our risks in this area. Commission income in the consulting fields described below increased significantly (11.6%).

There was a clear upturn in the real estate brokerage business in the 2024 financial year, with revenue increasing significantly by 72.9% over the previous year's weak figure. Wealth management revenue also rose considerably by 23.3%. The significant increase in performance-based compensation to €33.9 million (€4.4 million) was particularly noticeable here. In addition, assets under management reached a new high of €63.1 billion as of December 31, 2024 (€57.0 billion). Our health insurance revenue displayed slight growth of 5.9%. In the loans and mortgages consulting field, revenue was slightly up on the previous year's level with an increase of 3.4%. With an increase of 2.7%, non-life insurance revenue also remained roughly at the previous year's level. The managed premium volume reached a new high of €750.6 million (€687.0 million). In old-age provision, we recorded stable revenue relative to the previous year with an increase of 0.3%.

Development of consultant and client numbers

The number of self-employed consultants in the MLP Group rose to 2,110 (2,055) at the end of 2024. The consultant turnover rate was 8.7% (9.6%).

Based on its holistic consulting approach, MLP counts its private clients as family clients. Family clients are economically related persons living in a household.

In total, MLP acquired 20,500 new family clients (19,500) in the financial year 2024. As of December 31, 2024, the number of family clients served by the MLP Group increased to 590,700 in total (580,000). The number of corporate and institutional clients being served as of December 31, 2024 was 28,000 (27,400).

Development of CO2 emissions per capita and the proportion of women in management positions

Compared to the previous year, the MLP Group has recorded a reduction in its CO2 emissions per capita for 2024. The 2024 value was 2.46 tonnes of CO2 per capita (previous year: 2.57 tonnes per capita).

The proportion of women in management positions in the MLP Group as of 31 December 2024 was 32.3% (previous year: 30.2%).

Results of operations

Revenue development

In the financial year 2024, the MLP Group was able to increase its total revenue - comprising sales revenue and other income - to a new all-time high of €1,066.7 million (€973.5 million).

Sales revenues rose to €1,037.5 million (€941.1 million) in the reporting period. Other income was €29.1 million (€32.4 million).

The breakdown of sales revenues by revenue type is shown in the table below.

Breakdown of revenue

All figures in € million 2024 2023 Change
in %
Total 1,037.5 941.1 10.2%
Income from interest rate business 90.4 65.7 37.5%
Real estate development income 4.7 30.9 -84.9%
Total commission income 942.5 844.5 11.6%
Wealth management 380.1 308.2 23.3%
Real estate brokerage 35.0 20.2 72.9%
Loans and mortgages 14.9 14.4 3.4%
Old-age provision 234.2 233.6 0.3%
Health insurance 63.8 60.2 5.9%
Non-life insurance 206.4 201.0 2.7%
Other commissions and fees 8.2 7.0 16.5%

Revenue can be broken down into the following two ways:

Broken down by our competence fields, the Wealth competence field achieved significant revenue growth in the 2024 financial year, reaching €520.3 million (€408.5 million). In the Life & Health competence field, revenue was €298.0 million (€293.8 million) and was therefore stable. At €206.4 million (€201.0 million), revenue in the Property & Casualty competence field also remained at the previous year's level. The activities not assigned to these competence fields generated revenue of €12.8 million (€37.9 million).

Broken down by our revenue types, income from interest rate business increased significantly to €90.4 million (€65.7 million) as a result of the higher interest rate level. Revenue from real estate development declined significantly to €4.7 million (€30.9 million). This can be attributed to market developments and our prudent strategic approach. Commission income rose significantly to €942.5 million (€844.5 million). In the reporting period, MLP achieved growth in commission income in all the consulting fields described below.

The MLP Group was able to significantly increase its wealth management revenue. At €380.1 million (€308.2 million), revenue was 23.3% higher than in the previous year, mainly due to the substantial increase in performance-based compensation to €33.9 million (€4.4 million). However, the further increase in assets under management, which reached a new high at €63.1 billion (€57.0 billion) as of December 31, 2024, also contributed to this positive development. In the last financial year, we recorded significant increases in assets under management in both the Banking segment and the FERI segment.

Revenue in real estate brokerage rose significantly by 72.9% to €35.0 million (€20.2 million). There was a clear improvement in this consulting field. In this environment, the real estate volume brokered by MLP also increased significantly to €388.6 million (€238.9 million) from a low level in the previous year.

Revenue from loans & mortgages rose by 3.4% to €14.9 million (€14.4 million). The brokered financing volume increased significantly to €1,461.5 million here (€1,178.1 million).

Old-age provision revenue rose by 0.3% to €234.2 million in the last financial year (€233.6 million). The ongoing uncertainties caused by both economic and geopolitical crises made themselves felt here. On the client side, this was reflected throughout the sector both in the reluctance to conclude longer-term contracts and in the area of occupational pension provision. The brokered total premiums paid declined from €4,155.7 million to €4,081.5 million.

Health insurance revenue increased by 5.9% to €63.8 million (€60.2 million). We benefited from the continued high level of interest in high-quality healthcare services here, particularly in the area of private health insurance.

Non-life insurance revenue rose by 2.7% to €206.4 million (€201.0 million) in the last financial year. In addition to increasing portfolio volumes, higher profit sharing from insurers had a positive effect in the Industrial Broker segment. The premium volume managed in the MLP Group as of December 31, 2024 was increased to a new record level of €750.6 million (€687.0 million).

Other income declined slightly to €29.1 million (€32.4 million). Among other things, this decline can be attributed to lower income from investments.

Inventory changes

The inventory changes are the result of real estate development activities and reflect the changes in asset values generated by construction and sales progress during the reporting period. This item will increase as the respective projects progress and then decline again with the gradual sale of project units. In light of our reduced construction activities with ongoing sales activities, as well as the write-downs on inventory assets included, total inventory changes in the financial year 2024 were -€4.3 million (-€11.3 million).

Development of expenses

The breakdown of our expenses is shown in the table below.

Breakdown of expenses

All figures in € million 2024 2023 Change
in %
Inventory changes -4.3 -11.3 -61.9%
Commission expenses -474.9 -426.7 11.3%
Real estate brokerage expenses -5.1 -18.7 -72.7%
Interest expenses -30.2 -16.3 85.0%
Remeasurement gains or losses/loan loss provisions -8.0 -1.0 670.4%
Personnel expenses -233.0 -209.1 11.5%
Depreciation and impairments -30.0 -35.8 -16.1%
Other expenses -187.5 -184.3 1.7%
Total -973.1 -903.2 7.7%

Commission expenses primarily comprise performance-linked commission payments to our MLP consultants. They represent the largest item under expenses. This item also includes commission expenses in the DOMCURA and Industrial Broker segments. Variable expenses result from the compensation of brokerage services in the non-life insurance business. Added to these are the commission expenses for wealth management in the FERI segment, which in particular result from the activities in the field of fund administration. In this business field, they are primarily accrued due to compensation of depository banks and fund sales. Commission expenses from real estate brokerage are also accrued in the Deutschland.Immobilien segment.

Similarly to the development of commission income, commission expenses were significantly higher than in the previous year at €474.9 million (€426.7 million). Net commission income, which is the difference between commission income and commission expenses, rose to €467.6 million here (€417.8 million). Interest expenses increased significantly to €30.2 million (€16.3 million) in line with revenue development. Net interest increased to €60.2 million here (€49.4 million). Real estate development expenses declined significantly to €5.1 million (€18.7 million), also in line with the revenue development recorded.

Gross profit (defined as the total of revenue minus commission expenses, interest expenses, real estate development expenses, as well as inventory changes) improved to €552.1 million (€500.5 million).

The item "Remeasurement gains or losses/loan loss provisions" was -€8.0 million (-€1.0 million) in the reporting year. The significant increase can essentially be attributed to lower income from reversals of impairment losses and an offsetting increase in expenses for recognising impairment losses. The increased expenses are due in particular to the formation of loan loss provisions for receivables due to associates and the increase in post-model adjustments.

At €450.6 million in the reporting year (€429.2 million), the administration costs of the MLP Group remained virtually at the previous year's level. Among other things, personnel expenses include general salary rises for employees. MLP Startup GmbH, which serves as the training company for the new consultant trainee model and has been recorded under personnel expenses since commencing business operations in the third quarter of 2023, also contributed to the increase in personnel expenses. However, the increase was also driven by the consolidation of Uniwunder GmbH since January 1, 2024. Another factor was the increase in variable compensation as a result of higher performance-based compensation. In contrast, the lower expenses for the inflation relief bonus had the opposite effect compared to the 2023 reporting year. The individual components developed as follows: Personnel expenses increased to €233.0 million (€209.1 million). At €30.0 million (€35.8 million), depreciation/amortisation and impairment were lower than in the previous year. Other expenses increased to €187.5 million (€184.3 million).

Earnings from investments accounted for using the equity method

Total earnings from investments accounted for using the equity method were €1.4 million (€0.4 million) in the reporting year. This figure also includes the earnings of MLP Hyp GmbH. The change in earnings can be attributed to an improved earnings position at MLP Hyp. Along with the recovery in real estate brokerage, we are also seeing a renewed increase in demand for associated financing. This item also comprises earnings of one entity of the DI Group.

Earnings performance

The breakdown of the earnings structure is presented in the following table.

All figures in € million 2024 2023 Change in % Total revenue 1,066.7 973.5 9.6% Gross profit 1 552.1 500.5 10.3% Gross profit margin (in %) 51.8% 51.4% – EBIT 95.0 70.7 34.3% EBIT margin (in %) 8.9% 7.3% – Financial result 4.6 -1.7 -360.9% EBT 99.6 69.0 44.3% EBT margin (in %) 9.3% 7.1% – Income taxes -30.3 -24.9 21.8% Net profit 69.3 44.1 57.0% Net margin (in %) 6.5% 4.5% –

Structure and changes in earnings in the Group

1 Definition: Gross profit is defined as the result of total revenue minus commission expenses, real estate development expenses and interest expenses, taking into account inventory changes

Having enjoyed solid operational development across virtually all fields of consulting, we recorded EBIT of €95.0 million (€70.7 million), which is significantly higher than in the previous year.

The financial result in the 2024 financial year was €4.6 million (-€1.7 million). In this context, the MLP Group benefited from significantly positive remeasurement gains resulting from the modification of a loan agreement, as well as better loan conditions from the second quarter of 2024 onwards. Earnings before taxes (EBT) therefore increased to €99.6 million (€69.0 million). The tax rate was 30.4% (36.0%). Compared to the previous year, more deferred tax assets were recognised on loss carryforwards due to positive planning calculations. Overall, net profit rose to €69.3 million (€44.1 million).

Net profit

All figures in € million 2024 2023 Change in %
Continuing operations 69.3 44.1 57.0%
GROUP 69.3 44.1 57.0%
Earnings per share in € (basic) 0.63 0.44 42.6%
Earnings per share in € (diluted) 0.63 0.44 42.6%
Number of shares in millions (basic) 109.2 109.2 -0.0%
Number of shares in millions (diluted) 109.3 109.3 0.0%

Appropriation of profits

Net profit per share was €0.63 in the last financial year (€0.44).

MLP SE paid out a dividend of €0.30 per share for the financial year 2023. The total dividend was €32.8 million. The Executive Board and Supervisory Board at MLP SE will propose a dividend of €0.36 for the financial year 2024 at the Annual General Meeting to be held on June 25, 2025. This corresponds to a distribution rate of around 57% of net profit. Our dividend policy is to pay 50% to 70% of net profit to our shareholders in the form of dividends.

Financial position

Aims of financial management

The MLP Group's financial management is performed by a central Treasury department in coordination with the Controlling and Risk Management departments. Our overarching goal is to secure the liquidity of the Group at all times, control the risks associated with financial instruments and optimise Group-wide cash management. To this end, we employ a system of rolling liquidity planning with a time frame of 15 to 18 months.

There were no significant liabilities or receivables in foreign currencies during the reporting period, as we generate almost 100% of total income in the eurozone. It is therefore not necessary for us to hedge net items in foreign currencies by means of hedging instruments. You can find details on the financial risks in the notes to the consolidated financial statements in the "Financial risk management" section.

Capital structure

The MLP Group's equity capital adequacy and liquidity remain stable. At €570.3 million (€532.2 million), shareholders' equity was slightly above the previous year's level as of the balance sheet date. Net profit for the 2024 financial year had a notable impact on the changes in the consolidated shareholders' equity, which rose significantly to €69.3 million (€44.1 million) despite operating in a challenging environment. An opposite effect resulted from the dividend payment for the 2023 financial year. Due to the stable dividend policy of the MLP Group, this remained unchanged at €32.8 million (€32.8 million). The equity ratio remained virtually unchanged at 13.7% (13.6%). Set against the backdrop of increased equity, the regulatory core capital ratio rose to 19.2% (18.1%) as of the balance sheet date. For the years from 2025 onwards, MLP is anticipating an increased capital requirement in the current Group structure due to the requirements resulting from implementation of Basel IV (CRR III), with the new approach to determining operational risks being a particular driver here.

At present, we are using only a very limited amount of borrowed funds for the long-term financing of the Group in the form of securities, promissory note bond issues or loans. Among other things, this includes a loan taken out by MLP Finanzberatung SE, as well as various loans taken out by the Deutschland.Immobilien Group. MLP has agreed-upon and non-utilised lines of credit of €219.8 million (€209.6 million). The non-current assets are financed by our shareholders' equity and non-current liabilities. Current liabilities due to clients and financial institutions in the banking business represent further refinancing funds that are generally available to the MLP Group in the long term. Total liabilities due to clients and financial institutions in the banking business of €3,066.8 million (€2,905.2 million) essentially comprise client deposits and brokered loans. These liabilities are offset on the assets side of the balance sheet by €2,120.7 million (€2,010.1 million) in receivables from clients and financial institutions in the banking business. In addition to this, MLP holds a high level of cash and cash equivalents of €1,150.3 million (€1,053.9 million).

Since provisions only account for 2.6% (2.7%) of the balance sheet total, they have no significant financing function for the Group. Other liabilities rose to €369.2 million (€341.0 million) as of the balance sheet date. Due to the typically strong year-end business, these increase significantly up to the balance sheet date on December 31 and then decline again in the subsequent quarters. Other current liabilities were €251.0 million (€216.1 million). These are offset on the assets side of the balance sheet by cash and cash equivalents of €1,150.3 million (€1,053.9 million), financial investments of €188.2 million (€184.1 million), as well as other receivables and other current assets of €221.7 million (€204.2 million). The slight increase in other receivables and current other assets is mainly due to higher trade receivables.

No increase in capital stock took place in the reporting period.

Capital expenditure

MLP generally finances capital expenditures from operating cash flow. At €27.2 million (€16.8 million), the MLP Group's total investment volume in the financial year 2024 was significantly higher than in the previous year. Capital expenditure on property, plant and equipment increased significantly to €24.4 million (€11.4 million). This increase is essentially the result of the ongoing construction project for the RVM administration building in Reutlingen, as well as investments in operating and office equipment, in particular on the MLP Campus in Wiesloch. Investments in intangible assets fell to €2.8 million (€5.3 million) in the financial year 2024. The decline is essentially due to lower advance payments for software and software in use, as well as lower investments in purchased software.

All figures in € million 2024 2023 2022 2021 2020
Intangible assets 2.8 5.3 5.5 5.2 5.8
Goodwill - - - - -
Software (developed inhouse) - 0.1 0.6 0.2 -
Software (purchased) 2.4 3.2 3.4 1.7 1.9
Other intangible assets 0.1 - - - -
Advance payments for software and software
in use		 0.3 2.0 1.5 3.2 3.9
Property, plant and equipment 24.4 11.4 16.7 4.9 3.5
Land, leasehold rights and buildings 0.2 1.0 10.4 0.7 0.4
Other fixtures, fittings and office equipment 7.9 6.7 5.2 3.7 2.9
Payments on account and assets under
construction		 16.3 3.7 1.1 0.5 0.2
Company acquisitions, purchase price
components already paid 1		 - - 20.5 62.1 -
Total capital expenditures 27.2 16.8 42.7 72.2 9.3

Capital expenditure

1 RVM Group, Hamester/Jahn Group, Limmat Wealth AG

With regard to capital expenditure in the various segments, investments were primarily made in the Financial Consulting, DOMCURA and Holding segments. Investments in the Holding segment increased significantly to €17.9 million (€5.4 million). This increase is essentially the result of the ongoing construction project for the RVM administration building in Reutlingen, as well as investments in operating and office equipment, in particular on the MLP Campus in Wiesloch. A total of €5.0 million (€4.3 million) was invested in the Financial Consulting segment, in particular in operating and office equipment. Investment in the DOMCURA segment decreased to €2.8 million (€4.4 million). The focus of investments was on acquired software here.

The majority of the remaining capital expenditure was distributed across the following four segments: FERI at €1.1 million (€1.3 million), Industrial Brokerage at €0.3 million (€0.7 million), Banking at around €0.0 million (€0.3 million) and Deutschland.Immobilien at around €0.0 million (€0.4 million).

Capital expenditures by segment

Total expenditure Change in %
All figures in € million 2024 2023
Financial Consulting 5.0 4.3 16.3%
Banking 0.0 0.3 -100.0%
FERI 1.1 1.3 -15.4%
DOMCURA 2.8 4.4 -36.4%
Industrial Broker 0.3 0.7 -57.1%
Holding 17.9 5.4 231.5%
Deutschland.Immobilien 0.0 0.4 -100.0%
Total 27.2 16.8 61.9%

Liquidity

Cash flow from operating activities rose to €165.0 million, compared with €116.7 million in the same period of the previous year. Here, significant cash flows result from the deposit business with our clients and from the investment of these funds.

Cash flow from investing activities declined from €28.6 million to -€26.9 million. This is mainly due to the larger volume of fixed-term and time deposits made in the reporting year.

Cash flow from financing activities changed from -€53.2 million to -€43.4 million. This is due to greater use of financing loans in the current financial year.

Condensed statement of cash flow

All figures in € million 2024 2023
Cash and cash equivalents at the beginning of period 1,053.9 957.6
Cash flow from operating activities 165.0 116.7
Cash flow from investing activities -26.9 28.6
Cash flow from financing activities -43.4 -53.2
Cash-effective changes in cash and cash equivalents 94.6 92.0
Changes in cash and cash equivalents due to changes to the scope of consolidation 1.7 0.8
Changes in cash and cash equivalents due to exchange rate movements 0.0 -0.1
Changes in liabilities to banks due on demand (excluding the banking business) 0.0 3.6
Cash and cash equivalents at the end of period 1,150.2 1,053.9

As of December 31, 2024, the MLP Group had access to cash holdings of approximately €1,207 million (€1,127 million). These comprise cash and cash equivalents, the credit held by MLP SE at MLP Banking AG and the medium-term deposits. As such, the liquidity situation remains stable. Accordingly, there are sufficient cash reserves available to the MLP Group. Alongside cash holdings, free lines of credit are also in place.

With the alternative key performance indicator (KPI) of "net liquidity", we wish to highlight the cash holdings not resulting from the banking business that are available to the MLP Group on the balance sheet date. This presents the cash and cash equivalents of MLP SE and its subsidiaries (excluding MLP Banking AG) on the basis of the companies included in the consolidated financial statements. As of December 31, 2024, the net liquidity was €205.1 million (€190.5 million).

Net assets

Development of the balance sheet total

As of December 31, 2024, the balance sheet total of the MLP Group increased slightly to €4,152.3 million (€3,917.5 million).

Development of assets

All figures in € million Dec. 31, 2024 Dec. 31, 2023 Change
in %
Intangible assets 221.9 225.5 -1.6%
Property, plant and equipment 157.9 142.3 10.9%
Investments accounted for using the equity method 3.2 2.2 45.0%
Deferred tax assets 9.4 3.7 155.7%
Receivables from clients in the banking business 1,355.8 1,231.0 10.1%
Receivables from financial institutions in the banking business 764.9 779.1 -1.8%
Financial assets 188.2 184.1 2.2%
Inventories 26.2 39.6 -33.8%
Tax refund claims 3.5 7.4 -53.0%
Other receivables and assets 271.1 248.7 9.0%
Cash and cash equivalents 1,150.3 1,053.9 9.1%
Total 4,152.3 3,917.5 6.0%

On the assets side of the balance sheet, intangible assets – above all including the client base, brand and goodwill – remained at the previous year's level at €221.9 million (€225.5 million). Property, plant and equipment increased significantly to €157.9 million (€142.3 million), essentially due to the ongoing construction project for the RVM administration building in Reutlingen, as well as renovation and modernisation work on the MLP Campus in Wiesloch. Investments accounted for using the equity method increased significantly to €3.2 million (€2.2 million). This increase is due to the positive earnings development and the associated positive development of the carrying amount of the associate MLP Hyp GmbH that is included in this item.

Deferred tax assets increased significantly to €9.4 million (€3.7 million), mainly due to higher deferred tax assets on loss carryforwards.

Receivables from clients in the banking business increased significantly to €1,355.8 million (€1,231.0 million). This increase is essentially due to the rise in own-resource loans. At €764.9 million (€779.1 million), receivables from financial institutions in the banking business remained at the previous year's level. Around 42% of receivables from clients and financial institutions in the banking business have a remaining term of less than one year.

Financial investments remained virtually unchanged at €188.2 million (€184.1 million). The "Inventories" item disclosed in the balance sheet essentially represents the assets of the project enterprises within the Deutschland.Immobilien Group. This item declined significantly to €26.2 million (€39.6 million) as of December 31, 2024. The decline can essentially be attributed to the scaling back of construction activities due to the market situation, while sales activities continued, as well as the recognition of write-downs on inventory. Tax refund claims declined significantly to €3.5 million (€7.4 million) due to the receipt of payments following the receipt of tax assessment notices for MLP SE and MLP Finanzberatung SE.

At €271.1 million (€248.7 million), other receivables and assets were slightly above the previous year's level. This item essentially comprises commission receivables from insurers and other product partners resulting from the brokerage of insurance products. Due to the typically strong year-end business, these increase significantly at the end of the year and then decline again during the course of the following financial year. The increase is essentially the result of higher trade receivables, as well as the underwriting business.

Cash and cash equivalents increased slightly to €1,150.3 million (€1,053.9 million), primarily due to higher deposits of MLP Banking AG at the German Central Bank. You can find detailed information on the change in cash and cash equivalents in the chapter entitled "Financial position".

Development of liabilities and shareholders' equity

All figures in € million Dec. 31, 2024 Dec. 31, 2023 Change
in %
Equity attributable to MLP SE shareholders 570.5 538.5 5.9%
Non-controlling interests -0.2 -6.3 -97.5%
Total shareholders' equity 570.3 532.2 7.2%
Provisions 106.8 104.2 2.5%
Deferred tax liabilities 20.6 17.3 19.1%
Liabilities due to clients in the banking business 2,914.0 2,764.6 5.4%
Liabilities due to financial institutions in the banking business 152.8 140.6 8.7%
Tax liabilities 18.6 17.5 5.9%
Other liabilities 369.2 341.0 8.3%
Total 4,152.3 3,917.5 6.0%

The equity capital adequacy of the MLP Group remains good. The shareholders' equity of the MLP Group rose to €570.3 million (€532.2 million) as of the reporting date of December 31, 2024 due to the positive net profit. Non-controlling interests, which previously resulted primarily from the acquisition of the majority stake in the Deutschland.Immobilien Group in 2019, declined to -€0.2 million (-€6.3 million) as a result of the increase in the stake in DI Deutschland.Immobilien AG. The balance sheet equity ratio at the end of the financial year was 13.7% (13.6%). Based on net profit of €69.3 million (€44.1 million), the MLP Group therefore achieved a return on equity of 13.0% (8.4%).

At €106.8 million (€104.2 million), provisions were at roughly the previous year's level.

Deferred tax liabilities increased significantly to €20.6 million (€17.3 million) due to higher deferred tax liabilities on intangible assets.

Liabilities due to clients in the banking business, which represent our clients' deposits, increased slightly to €2,914.0 million (€2,764.6 million). In particular, this reflects an increase in due on demand client deposits. Liabilities due to financial institutions in the banking business also increased slightly to €152.8 million (€140.6 million), primarily due to higher liabilities from brokered loans. Around 88% of the liabilities due to clients and financial institutions in the banking business can be classified as short-term. These primarily include variable-rate current account deposits.

Tax liabilities increased slightly to €18.6 million (€17.5 million). This increase is essentially due to the formation of provisions at MLP Finanzberatung SE and FERI (Luxembourg) S.A. Other liabilities rose slightly to €369.2 million (€341.0 million). This item also comprises current liabilities due to our consultants and branch office managers due to outstanding commission claims. The increase can be attributed to various liabilities, including higher personnel-related obligations.

Off-balance-sheet commitments

Off-balance sheet commitments comprised irrevocable credit commitments and contingent liabilities. These declined significantly to €115.8 million (€133.2 million) in the past financial year 2024. This decrease is essentially the result of lower irrevocable credit commitments.

Comparison of actual and forecast business performance

In the MLP Group Annual Report 2023, we issued a forecast for the financial year 2024, which we then partially updated in the interim report and in the quarterly statement for the third quarter. With the results for the financial year 2024 now available, we can compare the actual business performance with the forecast business performance.

Revenue development

We were anticipating a slight increase in revenue at the start of the year, but adjusted this expectation once the results for the first nine months were available and are now anticipating a significant increase in revenue. The adjustment resulted in particular from the improved business development in wealth management. In the 2024 financial year, revenue was ultimately significantly higher than in the previous year and therefore in line with our adjusted forecast.

At the start of the year, we had anticipated a significant increase in interest income in the 2024 financial year. Ultimately, we were able to significantly increase interest income in the financial year 2024 and therefore hit our forecast.

At the start of the year, we were anticipating a significant decline in revenue from real estate development in the 2024 financial year. Ultimately, revenue from real estate development was significantly lower in the 2024 financial year than in the previous year, meaning that we hit our forecast.

At the start of the year, we were anticipating a slight increase in commission income in the 2024 financial year. However, we then adjusted this expectation once the results for the first half of the year were available and are now anticipating a significant increase in commission income. The adjustment resulted in particular from the improved business development in wealth management. Ultimately, we were able to significantly increase commission income in the 2024 financial year and therefore hit our revised forecast.

At the start of the year, we were anticipating revenue in wealth management to remain stable, but adjusted this expectation twice during the year. Once the results for the first half of the year were available, we adjusted our expectations to a slight increase in revenue as a result of the positive development recorded over the course of the year. When the results for the first nine months became available, we adjusted our expectations to a significant increase in revenue as a result of the continued positive development over the course of the year, including significantly higher performance-based compensation. In the financial year 2024, wealth management revenue was ultimately significantly higher than in the previous year and therefore in line with our adjusted forecast.

At the start of the year, we were anticipating a significant increase in real estate brokerage revenue. In the financial year 2024, revenue from real estate brokerage was ultimately significantly higher than in the previous year and therefore in line with our forecast.

At the start of the year, we were anticipating a significant increase in revenue from loans & mortgages. After reviewing the results for the first nine months, we adjusted our expectations as a result of lower revenue in the field of home ownership savings plans and are now anticipating only a slight increase in revenue. In the financial year 2024, revenue from the loans and mortgages business was ultimately at the previous year's level and therefore below our adjusted forecast.

At the start of the year, we were anticipating a significant increase in old-age provision revenue, but then adjusted this expectation twice during the year. After reviewing the results for the first half of the year, we then adjusted our expectations to a slight increase in revenue due to a noticeable reluctance on the part of companies to invest in occupational pension provision schemes. After reviewing the results for the first nine months, we adjusted our expectations to stable revenue due to the continuing reluctance of companies to invest in occupational pension provision schemes. In the financial year 2024, old-age provision revenue ultimately remained at the previous year's level and was therefore in line with our adjusted forecast.

At the start of the year, we were anticipating health insurance revenue to remain at the previous year's level. In the financial year 2024, revenue from health insurance was ultimately slightly higher than in the previous year and therefore also above our forecast.

At the start of the year, we were anticipating non-life insurance revenue to remain at the previous year's level. In the financial year 2024, non-life insurance revenue ultimately remained at the previous year's level and was therefore in line with our forecast.

Development of expenses

At the start of the year, we were anticipating a significant increase in interest expenses. In the financial year 2024, interest expenses were ultimately significantly higher than in the previous year and therefore in line with our forecast.

At the start of the year, we were anticipating a significant decline in real estate development expenses. In the financial year 2024, real estate development expenses were ultimately significantly lower than in the previous year and therefore in line with our forecast.

At the start of the year, we were anticipating a slight increase in commission expenses, but then adjusted this expectation once the results for the first half of the year were available and are now anticipating a significant increase in commission expenses. The adjustment was made in line with the adjusted expectation for commission income. In the financial year 2024, commission expenses were ultimately significantly above the previous year's level and therefore in line with our revised forecast.

At the start of the year, we assumed that we would be able to keep administration costs stable in the financial year 2024. Ultimately, administration costs remained stable in the 2024 financial year and were therefore in line with our forecast.

Earnings performance

At the start of the year, our EBIT forecast for the whole of 2024 was in the range from €75 million to €85 million, meaning that we had forecast a higher EBIT for the 2024 financial year than we had achieved in the 2023 financial year. On July 29, 2024, we confirmed this EBIT forecast, substantiating our expectation to hit the upper half of this corridor. The adjustment was made due to positive overall operational development with particularly favourable developments in the interest rate business and wealth management. On October 2, 2024, we raised our EBIT forecast for the whole of 2024 to a corridor between €85 million and €95 million. This was due to the overall positive business performance and, in particular, the significantly higher than originally anticipated performance-based compensation in the third quarter. At €95 million, EBIT was ultimately within the stated corridor of €85 million to €95 million and was therefore in line with our adjusted forecast.

Segment report

Structure and description of the segments

The MLP Group is broken down into the following segments:

  • Financial Consulting
  • Banking
  • FERI
  • DOMCURA
  • Deutschland.Immobilien
  • Industrial Broker
  • Holding

A description of the segments is provided in the following. An explanation is also given as to which revenue is generated from the respective competence fields in these segments.

The Financial Consulting segment includes revenue generated in the competence fields of old-age provision, health and non-life insurance, loans & mortgages, real estate brokerage and wealth management.

All banking services for private and corporate clients, ranging from wealth management, accounts and cards to the interest rate business, are consolidated within the Banking segment. Revenue is primarily generated from wealth management and the interest rate business.

Revenue in the FERI segment is generated from the wealth management field of consulting.

In the DOMCURA segment, revenue is generated primarily from the brokerage and administration of nonlife insurance policies. DOMCURA's business model is characterised by a high degree of seasonality during the year. Accordingly, the segment records comparably high sales revenue and earnings in the first quarter of each year. This is then typically followed by a loss from Q2 to Q4.

All revenues from real estate brokerage and real estate development of the DI Group are disclosed in the Deutschland.Immobilien segment.

The Industrial Broker segment primarily generates revenue from the non-life insurance competence field through brokerage of insurance policies for industrial and commercial clients. Business in the Industrial Broker segment is also characterised by pronounced seasonal fluctuations. Accordingly, the segment records high revenue and comparably high earnings in the first quarter of each year. This is then typically followed by a loss from Q2 to Q4. As the holding company, RVM GmbH is included in the Industrial Broker segment.

The Holding segment does not have active operations.

The following section sets out the development of the segments in the financial year 2024. This provides an overview of the earnings performance, including the development of revenue and expenses. You can find detailed figures on the development of earnings, revenue and expenses recorded by the individual segments in the Notes under "Information on reportable business segments".

Financial Consulting segment

Total revenue in the Financial Consulting segment rose to €440.0 million (€422.8 million) in the 2024 reporting year. Sales revenue rose to €405.5 million (€386.9 million). The non-life insurance business and the health insurance business, as well as a significantly stronger real estate brokerage business following a weak previous year, were the main contributors to the positive overall development. At €34.5 million (€35.9 million), other income remained at the previous year's level.

At €197.8 million (€180.0 million), commission expenses were higher than in the previous year, in line with the increase in revenue. The item "Remeasurement gains or losses/loan loss provisions" was -€0.7 million (-€0.2 million). Personnel expenses rose to €92.9 million (€88.7 million). The increase is essentially the result of the consolidation of MLP Startup GmbH, which acts as a training company for the new trainee model in the consultant area, since the third quarter of 2023, as well as the consolidation of Uniwunder GmbH since the first quarter of 2024. Depreciation/amortisation and impairment declined significantly to €14.6 million (€17.3 million) due to assets being fully written off in the previous year. At €111.4 million (€110.7 million), other operating expenses remained at the previous year's level. Earnings from investments accounted for using the equity method increased significantly to €1.5 million (€0.5 million). This increase can be attributed to a better earnings result at MLP Hyp GmbH.

As a result, earnings before interest and taxes (EBIT) declined slightly to €24.0 million (€26.3 million). With a financial result of -€0.2 million (-€0.4 million), earnings before taxes (EBT) also declined slightly to €23.9 million (€25.8 million).

Banking segment

Total revenue in the Banking segment increased significantly to €224.0 million (€181.0 million) in the 2024 reporting year. Here, sales revenue rose significantly to €217.2 million (€174.5 million), primarily due to the ongoing strong interest rate business, as well as strong wealth management business. At €6.8 million (€6.5 million), other income remained at the previous year's level.

Commission expenses increased significantly to €62.5 million (€52.9 million) in line with the increase in sales revenue. Interest expenses also increased significantly to €34.4 million (€18.5 million) in line with the increase in sales revenue. The item "Remeasurement gains or losses/loan loss provisions" declined significantly to -€6.7 million (-€2.3 million) due to the modification of a loan agreement with the DI Group. Personnel expenses rose slightly to €17.8 million (€16.3 million), primarily due to an increase in the number of employees and also salary adjustments. Depreciation/amortisation and impairment remained virtually unchanged at €0.5 million (€0.6 million). Due to higher Group allocations, as well as higher consulting costs, other expenses rose slightly to €53.5 million (€48.9 million).

As a result, EBIT increased significantly to €48.4 million (€41.6 million). With a virtually unchanged financial result of -€0.4 million (-€0.0 million), EBT increased significantly to €48.0 million (€41.6 million).

FERI segment

Total revenue in the FERI segment increased significantly to €264.3 million (€212.6 million) in the reporting period. Sales revenue rose significantly over the previous year to €261.3 million (€206.8 million). This was due to a strong wealth management business with increased performance-based compensation. Other income declined significantly to €3.0 million (€5.9 million). This decrease can primarily be attributed to lower dividend payouts from non-consolidated companies, as well as lower income from the reversal of provisions.

In line with the higher sales revenue, commission expenses also increased significantly to €151.0 million (€128.4 million). The item "Remeasurement gains or losses/loan loss provisions" increased significantly to €1.5 million (-€0.2 million) due to effects in the fair value measurement of investments. Personnel expenses rose significantly to €55.5 million (€43.9 million), primarily due to a significant increase in variable compensation, as well as higher salaries. At €3.6 million (€3.6 million), depreciation/amortisation and impairment remained at the previous year's level. Other expenses increased significantly to €19.6 million (€16.9 million) due to higher marketing costs.

As a result, EBIT rose significantly to €36.2 million (€19.6 million). Higher interest income had a positive effect on the financial result, which increased significantly to €1.1 million (-€0.4 million). As a result, EBT increased significantly to €37.3 million (€19.3 million).

DOMCURA segment

Total revenue in the DOMCURA segment rose to €130.7 million (€128.7 million) in the reporting year. Here, sales revenue reached €126.7 million (€125.6 million). Other income increased significantly to €4.0 million (€3.1 million) as a result of higher allocations to non-consolidated subsidiaries.

At €82.5 million (€82.1 million), commission expenses remained at the previous year's level, in line with sales revenue. Personnel expenses rose slightly to €23.1 million (€20.9 million). This is due to various factors, including a higher number of employees, salary adjustments, severance payments and changes in the personnel structure. Depreciation/amortisation and impairment increased significantly to €4.8 million (€3.1 million) due to the shortening of the useful life of fixtures in the administration building rented by MLP SE. At €15.3 million (€13.6 million), other expenses were significantly higher than in the previous year. The increase is essentially the result of a one-off special effect in connection with the reduction in fixed assets due to changes in the IT infrastructure.

As a result, EBIT declined significantly to €5.1 million (€8.8 million). Higher interest income had a positive effect on the financial result, which increased significantly to €1.3 million (€0.7 million). Nevertheless, EBT declined significantly to €6.4 million (€9.5 million).

Deutschland.Immobilien segment

Total revenue in the Deutschland.Immobilien segment declined significantly to €47.7 million (€56.9 million) in the reporting year. Sales revenue declined significantly to €42.3 million (€51.6 million). The significant increase in revenue from real estate brokerage was unable to compensate for the expected and significant decline in revenue from real estate development. At €5.4 million (€5.3 million), other income remained at the previous year's level.

The inventory changes are the result of real estate development activities and reflect the changes in asset values generated by construction and sales progress during the reporting period. This item will increase as the respective projects progress and then decline again with the gradual sale of project units. In light of our reduced construction activities with ongoing sales activities, as well as the write-downs on inventory assets included, total inventory changes in the financial year 2024 were -€4.3 million (-€11.3 million).

Commission expenses increased significantly to €27.2 million (€15.8 million). This was due to an increase in the brokerage of residential units by MLP consultants. Real estate development expenses declined significantly to €5.2 million (€19.4 million) due to the declining real estate development volume. The item "Remeasurement gains or losses/loan loss provisions" increased significantly to -€4.9 million (€0.8 million), following higher reversals of specific loan loss provisions in the previous year. Personnel expenses fell significantly to €8.5 million (€9.4 million), primarily due to a lower number of employees. Depreciation/amortisation and impairment declined significantly to €1.2 million (€5.7 million). This decline can be attributed to the goodwill impairment on the cash-generating unit DI Sales included in the previous year. Following a high figure in the previous year, other expenses fell significantly to €8.0 million (€11.5 million).

As a result, the EBIT recorded of -€11.7 million (-€15.3 million) was significantly higher than in the previous year. In terms of the financial result, the segment benefited from significant remeasurement gains due to the modification of intra-Group loan agreements with MLP Banking AG and MLP SE, as well as one external loan agreement and, as a result, better loan conditions from the second quarter onwards.

Accordingly, the financial result increased significantly to €4.7 million (-€6.2 million). EBT was also significantly improved to -€7.0 million (-€21.5 million).

Industrial Broker segment

Total revenue in the Industrial Broker segment rose significantly to €38.4 million (€34.9 million) in the reporting year. Here, sales revenue rose slightly to €36.5 million (€33.6 million), largely as a result of increased revenue from the non-life insurance business. Other income increased to €1.9 million (€1.4 million).

Commission expenses remained virtually unchanged at €1.0 million (€1.1 million). Personnel expenses rose slightly to €21.8 million (€20.4 million) due to higher salaries and an increase in the number of employees. Depreciation/amortisation and impairment amounted to €3.0 million (€3.4 million). Other expenses declined significantly to €6.2 million (€8.7 million) due to the negative impact on this item in the previous year from the merger of Dr. Schmitt Versicherungsmakler GmbH and Bavaria-Assekuranz Versicherungsmakler GmbH with and into Dr. Schmitt GmbH Würzburg.

As a result, EBIT increased significantly to €6.4 million (€1.4 million). With a financial result of -€0.5 million (-€0.9 million), EBT increased significantly to €6.0 million (€0.5 million).

Holding segment

Total revenue in the Holding segment rose significantly to €18.7 million (€16.2 million) in the reporting year. Since this segment is not operationally active, there are no sales revenues. Other income increased significantly to €18.7 million (€16.2 million). This increase can essentially be attributed to restructuring measures and the transfer of employees from other Group companies to MLP SE.

At €13.4 million (€9.5 million), personnel expenses were significantly higher than in the previous year. This rise can primarily be attributed to restructuring measures and the transfer of employees from other Group companies to MLP SE, as well as salary adjustments. Depreciation/amortisation and impairment were €2.3 million (€2.1 million). Other expenses rose significantly to €20.6 million (€16.4 million). This increase is primarily due to higher IT costs, expenses for marketing measures and increased consulting expenses.

As a result of this, EBIT decreased significantly to -€17.5 million (-€11.9 million). Lower remeasurement gains or losses due to the modification of a loan agreement with the DI Group and lower interest income on tax assets had a negative impact on the financial result, which is why it decreased to €3.0 million (€4.4 million). As a result, EBT declined significantly to -€14.4 million (-€7.5 million).

Employees and self-employed client consultants

Focus on employees and consultants

For the MLP Group as a knowledge-based service provider, qualified and motivated employees and selfemployed client consultants are the most important basis for sustainable corporate success. Continuous development and optimisation of HR work for employees, as well as recruiting and training new consultants, were therefore also key focuses in 2024.

Development of employee numbers

The average number of employees in the MLP Group in the financial year 2024 was 2,454 (2,338). This increase can essentially be attributed to a higher number of new hirings and employees returning from parental leave. Uniwunder GmbH, which was consolidated for the first time in the Financial Consultancy segment and was not included in the previous year, also contributed to the increase in the number of employees. The additions to the holding company continue to result from the reorganisation in the course of the approval of MLP SE as the parent financial holding company of the MLP Group. For this reason, there were staff transfers from especially MLP Finanzberatung SE to MLP SE. Employee turnover within the Group was 9.9% in the reporting year 2024 (9.0%). The average age of the employees is currently 43.

The following table shows the development of average employee numbers in the individual segments over the last few years:

Segment 2024 2023 2022 2021 2020
Financial Consulting1 1,122 1,091 1,100 1,132 1,097
Banking 238 222 210 201 193
FERI 294 275 260 235 221
DOMCURA 333 311 297 304 293
Industrial Broker 282 267 249 132 —
Holding 92 64 24 55 46
Deutschland.Immobilien 93 109 113 — —
Total 2,454 2,338 2,252 2,058 1,850

Development of employee numbers by segment (excluding MLP consultants)

As of: December 31, 2024 / Personnel changes between the segments are reflected accordingly in the figures

1 Including ZSH GmbH Finanzdienstleistungen, MLP Dialog GmbH and Uniwunder GmbH

Development of consultant numbers, branch offices and university teams

The number of self-employed client consultants rose to 2,110 consultants (2,055) at the end of the financial year 2024.

As of December 31, 2024, MLP operated 127 branch offices (128). There were 95 university teams as of December 31, 2024 (96).

Personnel strategy and areas of action in personnel management

The MLP Group's personnel strategy is based on four pillars: "People and cooperation", "Attractive employer", "Shaping the future and promoting the potential of our employees" and "Working efficiently". This strategy makes a significant contribution to ensuring that people enjoy working for the companies in the MLP Group - both now and in the future. Our personnel strategy defines key HR areas of action for us.

Examples include strategic personnel and succession planning, positioning the employer brand of the companies in the MLP Group and increasing employer attractiveness. This also applies in particular to parents, among other things thanks to the active expansion and optimisation of family-friendly working conditions at MLP and our management culture.

Based on the MLP mission statement and the strategic HR approaches, new leadership principles for the companies jointly operated by MLP were developed in an interactive workshop in autumn 2021 with the involvement of managers from all hierarchical levels. These were implemented, communicated and anchored in the course of the financial year 2022. The leadership principles form the basis for continuous further development of the MLP management and personnel development instruments. The results of the surveys conducted in 2022 and 2023 on the general sentiment and leadership quality were also used in the financial year 2024 to derive a comprehensive package of measures. For example, the processes for selecting and training managers were further professionalised, while the formats for the regular management and employee development reviews were refined. With the new MLP education wallet, all employees at the companies jointly operated by MLP have enjoyed a training quota of at least 20 hours of further training every two years since the financial year 2024. For managers, a further ten hours are added in leadership skills. The leadership principles were developed for managers at the MLP Campus in Wiesloch, yet similar activities are also being carried out or are in planning in other areas of the Group.

The MLP leadership principles were also used to develop skills profiles for managers and employees. These "future skills" form the basis for the ongoing development of training and empowerment programmes for MLP employees. Based on an interview to determine potential and their performance in the selection process, new managers receive a development plan tailored to their needs with suitable personnel development tools and empowerment opportunities, such as a leadership development programme.

Based on a survey addressing health in the workplace, we established a comprehensive package of preventive health measures in the 2024 financial year. Promoting and helping maintain the health of our employees is something we consider especially important. In doing so, we always consider a variety of aspects, such as the working atmosphere, flexibility in terms of working hours, mutual appreciation, a culture of constructive criticism and social programmes. We are convinced that our measures to promote the physical and mental health of our employees can have a positive impact on motivation, maintaining performance and reducing sick days.

We support our employees in harmonising their individual life concepts with a productive and successful career and establish the framework conditions for this at the companies in the MLP Group. As a sign of its public commitment to diversity, MLP signed the Diversity Charter in 2014, thereby committing itself to promoting a prejudice-free working environment in which equal opportunities are a matter of course. The MLP Group promotes diverse teams and establishes a corporate culture that is characterised by a strong sense of belonging and in which all our team members feel appreciated. We want our employees to be able to contribute freely and realise their full potential within the company, irrespective of gender, ethnicity, origin, age or religion. Only in this way – with many talents, different backgrounds and strengths – can we reap the benefits together in a challenging and future-oriented environment.

Another area of action revolves around actively working towards greater participation of women at all management levels within the company. MLP places great importance on supporting women and ensuring a good work-life balance. The company has therefore made this topic a priority in recent years and has implemented various measures to promote women into management positions. Ensuring a balance between work and family life should also reinforce equality at the companies in the MLP Group and help maintain the health of our employees. We firmly believe that a healthy life balance contributes to the motivation and satisfaction of our employees, which is why we are establishing the framework conditions for this at the companies in the MLP Group. We also emphasise this through our certification in accordance with the workandfamily audit, which the companies operated jointly by MLP successfully completed for the first time in 2019. On the basis of the recertification of the audit in 2022, further implementation objectives for promoting family friendliness, as well as life phase-oriented alignment of the measures for employee retention have been agreed for the next three years.

In November 2020, the Executive Board at MLP SE approved a target of at least 33% for female managers at the first management level below Executive Board level at MLP SE. In December 2022, the Executive Board furthermore approved the same minimum target figure of 33% for female managers at the second management level below Executive Board level at MLP SE. These targets are to be met by the end of the financial year 2025. As of 31 December 2024, the proportion of women at the first management level below the Executive Board at MLP SE (divisional management) was 60% out of a total of 5 individuals. At the second management level below the Executive Board at MLP SE (department management), the proportion of women was 0% with a total of only 3 individuals.

The ongoing digitalisation of personnel work was also a focus of activities in 2024: For example, an employee portal was introduced to digitalise correspondence in the area of occupational pension schemes for employees and the robot-controlled process automation of various HR processes was further expedited. In addition to this, greater use was made of hybrid and agile work methods at the company. These were then also programmatically incorporated into personnel work. In future, a key focus of HR work will continue to be on acquiring expertise and experiential knowledge within the company in order to increase the efficiency of key processes and create more workplace flexibility for our employees through the use of modern technology, including artificial intelligence.

Economic report summary

In the financial year 2024, the overall economic environment remained challenging, which was also reflected in the industry and competitive situation and ultimately had an impact on MLP's business activities. Overall, regulatory developments were also challenging.

Business performance defied the tough environment, with MLP recording new year-on-year highs in terms of assets under management at €63.1 billion (€57.0 billion) and the non-life insurance portfolio volume at €750.6 million (€687.0 million). Compared to the previous year, the MLP Group recorded a reduction in its CO2 emissions per capita and an increase in the proportion of women in management positions in 2024.

The results of operations recorded an increase in total revenue, comprising sales revenue and other income, to a new high of €1,066.7 million (€973.5 million). As the largest component of this, sales revenue also hit a new high of €1,037.5 million (€941.1 million), whereby the individual consulting fields and segments displayed varying development. At €95.0 million (€70.7 million), EBIT was significantly higher than in the previous year.

From MLP's perspective, the financial position remained solid. The capital structure once again displayed good equity capital adequacy with an equity ratio of 13.7% (13.6%), while the need for external financing remained low. The liquidity situation remained good and there were sufficient liquidity reserves available. In addition to cash and cash equivalents there were also unused lines of credit. Investments were continued.

Net assets displayed a slight increase in the balance sheet total to €4,152.3 million (€3,917.5 million).

Some of the forecasts submitted at the start of the year were subsequently revised during the year. Accordingly, the business figures now largely match the forecasts. Sales revenue in the 2024 reporting year was significantly higher than in the previous year. This is in line with the forecast adjusted during the year, after we previously had only been anticipating a slight increase in sales revenue at the start of the year. At €95.0 million, EBIT in the reporting year 2024 was within our forecast range of between €85 million and €95 million. This is based on a revised forecast produced during the year, after we previously had only been anticipating a range of between €75 million and €85 million at the start of the year.

The number of employees increased to 2,454 (2,338), while the number of self-employed client consultants rose to 2,110 (2,055).

Overall, the business development recorded in the financial year 2024 can be rated as positive. Despite all challenges, we were able to achieve both operational and strategic successes, particularly in our core business.

Risk report

Risk management system

MLP defines risk management as the use of a comprehensive set of tools for managing risks in accordance with the strategy defined by the Executive Board and the associated risk-bearing capacity process. Risks should be consciously and systematically taken within the framework of internal control procedures, taking into account the associated profit opportunities and growth potential.

The operational and organisational structure, particularly the risk management and controlling processes, along with the dedicated function of risk controlling, compliance and internal audit represent essential components of the Group-wide risk management system.

The risk management system is also used to comply with the requirements of an early risk detection system pursuant to § 91 (2) of the German Stock Corporation Act (AktG).

Risk management is based on normative and economic management perspectives. In the economic control perspective, a present value-oriented approach is applied. The economic risk-bearing capacity is determined on the basis of the IFRS scope of consolidation, with an immediate risk look-through applied to Group companies under CRR, while other companies included in the IFRS consolidated financial statements are considered on an equity-based method. The equity method, determined using established business valuation methods, encompasses the profit-and-loss-driven, non-bank-regulated part of the MLP Group. From this, equity risks are derived and hidden reserves/liabilities are considered in the risk coverage potential. The quantified risks are determined at a confidence level of 99.9% or comparable.

The present value of the risk coverage capital is derived using a present value-based method.

Group-wide risk management

Similarly to the scope of consolidation as per IFRS, all companies of the MLP Group with material risks are incorporated into the Group-wide system of risk management as part of the risk management activities.

These companies, together with the immaterial, subordinate companies of the MLP Group, form the MLP Financial Holding Group (MLP FHG). Within the MLP FHG, MLP SE, as the licensed financial holding company, is the superordinate undertaking of the Group pursuant to § 10a (2) of the German Banking Act (KWG) and Art. 11 of the Capital Requirements Regulation (CRR). As the deposit and CRR financial institution, MLP Banking AG is subordinated to this. In the sense of § 25a (3) of the German Banking Act (KWG) and in conjunction with Section 4.5 of Germany's Minimum Requirements for Risk Management (MaRisk), the Executive Board at MLP SE has therefore ensured appropriate control and monitoring of the material risks at Group level through suitable processes. This approach particularly includes:

  • defining Group-wide strategies,
  • ensuring the Group's risk-bearing capacity,
  • establishing organisational and procedural rules for the Group,
  • implementing Group-wide risk management and controlling processes and
  • establishing a Group-wide risk controlling, compliance and audit function.

In the context of the strategy process and the risk audit, MLP SE, acting as the superordinate undertaking of MLP FHG, obtains an overview of the risks in the Group on both a regular and ad hoc basis.

Based on the risks identified at the individual companies and their severity, all risks identified as material within the Group by the superordinate undertaking are taken into account. When identifying sustainability risks, relevant ESG risk drivers are identified for the risk types of counterparty default risk, market price risk, liquidity risk, operational risk and other risks. Group-wide regulations and policies for establishing risk management at MLP FHG are defined, taking into account the type, scope, complexity and risk content, as well as the different application options provided by corporate law on an individual basis. For the purposes of determining the risk-bearing capacity, companies can be incorporated on a consolidated basis with their inherent risks (look-through) or through their inherent equity holding risk (without a detailed look-through of individual company risks and capital positions). Accordingly, the following companies are reviewed using the look-through approach in the same way as the group under CRR:

  • MLP SE, Wiesloch
  • MLP Banking AG, Wiesloch
  • FERI AG, Bad Homburg v. d. Höhe
  • FERI (Luxembourg) S.A., Luxembourg

The remaining companies that pose key risks are presented using the equity method.

The names of the companies in the MLP Group are provided in the list of shareholdings in the notes. 34 fully consolidated companies are recognised pursuant to IFRS.

Risk policies

As the superordinated undertaking of the MLP Group, the Executive Board at MLP SE defines the business strategy and a corresponding risk strategy that is consistent with this for the MLP FHG. The Group-wide risk appetite is then derived from the risk strategy. On this basis, the risk strategy defines the framework conditions for risk management at MLP FHG. The risk appetite is regularly reviewed and adjusted, as necessary.

The following basic principles align with the business strategy and describe the central framework conditions for risk management at MLP FHG:

The Executive Board is responsible for the proper organisation of the business and its further development

Irrespective of any supplementary internal responsibilities assigned, the Executive Board is responsible for proper organisation of the business and its further development at the company. It must introduce necessary measures for drawing up stipulations unless the decision is made by the Supervisory Board. This responsibility includes defining appropriate and Group-wide strategies (business strategy and risk strategy), as well as setting up appropriate internal control procedures - thereby assuming responsibility for all significant elements of the risk strategy. Responsibility for specifying the Group-wide business and risk strategy cannot be delegated. It is the responsibility of the Executive Board at MLP SE to implement the strategy, assess the risks associated with it, as well as to both put in place and monitor the necessary measures to ensure that these risks are limited at Group level. These also include development, promotion and integration of an appropriate risk culture at Group level. In addition to this, the Executive Board regularly prepares a statement on the adequacy of the risk management procedures.

The Executive Board and/or the Managing Directors bear responsibility for the risk strategy:

The Executive Board of the superordinate undertaking and the members of the Executive Board or Managing Directors of the subordinate companies ensure that a comprehensive approach, covering all key risk types, is integrated into the company and that suitable steps are taken to implement the risk strategy.

MLP promotes a strong awareness of risks and a pronounced risk culture:

An appropriate risk culture is critical for effective risk management. MLP sees its risk culture as the way in which employees handle risks within the scope of performing their duties. Our risk culture promotes the identification and conscious handling of risks with a view to ensuring that decision-making processes lead to results that are also balanced in terms of risk criteria. Our risk culture is characterised by the clear commitment of the Executive Board to risk-appropriate conduct, strict observance of the risk appetite communicated by the Executive Board on the part of all employees, as well as the facilitation and promotion of transparent and open dialogue on risk-relevant questions within the Group.

Strong, Group-wide awareness of risks across all divisions that goes beyond each employee's own area of responsibility and a corresponding risk culture are encouraged through appropriate organisational and incentive structures. In line with the requirements regarding pay systems, these are set out in such a way that negative incentives which could otherwise encourage managers and employees to enter into disproportionately high exposures are avoided and no risk-taking is encouraged above the level of the risk appetite set out by the Executive Board. The appropriateness of the risk management and controlling system is continuously monitored and any adjustments that become necessary are implemented as quickly as possible. Appropriate quality standards are established and subjected to continuous reviews.

The risk culture is, for example, substantiated on the basis of the requirements regarding new product processes, change processes and projects, each of which uses requests to determine the reason, the economic effects and corresponding risks. These requests promote an orderly process flow. To this end, approval processes are stipulated by both front and back-office functions up to Executive Board level. With regard to the ongoing assurance of risk awareness, the so-called "MaRisk Steering Committee" has been set up to monitor the processing of work packages resulting from new regulatory requirements, audits, etc. Suitable early warning indicators are also established as derivatives of the abstract risk culture in the operational areas. The Executive Board is notified of these in regular reports. Targets contribute to embedding the risk culture down to the employee level. This ensures that employees are encouraged to act in a risk-appropriate manner.

MLP engages in comprehensive risk communication, including risk reporting:

Identified risks are reported to the responsible management levels openly and without restriction. The Executive Board of the superordinated undertaking is informed in a comprehensive and timely manner (if necessary ad hoc) of the risk profile of the relevant risks, as well as profits and losses at the MLP FHG. The Supervisory Board receives the information required to fulfil its legal obligations. Internal risk communication and risk reporting are complemented by comprehensive external publications that address the interests of the shareholders of the MLP Group and the capital market while also complying with regulatory requirements.

MLP sets targets based on profitability and risk

The starting point for the risk strategy is the concept of earnings-oriented company management with the objective of achieving a sustainable increase in company value, as provided by the framework conditions of the business strategy. MLP implements this through a systematic and integrated earnings and risk management concept that is linked to the individual segments and companies. All decisions with business policy relevance are aligned with the goal of achieving appropriate profitability, while taking the relevant risks into account. With regard to the allocation of capital/risk coverage capital, management of the Minimum Requirements for Risk Management (MaRisk) is performed on the basis of the waiver from a Group perspective. Risk identification is performed at Group level, incorporating the risk organisation of the Group. The risks of the Group are compared against the risk coverage capital at Group level for the risk-bearing capacity assessment. The risk organisation, which encompasses the Group segments, facilitates risk management within the individual Group companies that are exposed to material risks.

Based on these premises, MLP generally assumes a position that adequately caters to risks in terms of its business policy alignment. This means that risks are consciously taken into account and managed while ensuring the risk-bearing capacity, particularly when there is a favourable risk-to-opportunity profile. In the case of a less favourable profile, risks are typically compensated for or reduced.

The risk-return ratio is a decision-making criterion used when assessing individual risk assumptions or a specific portfolio. For example, the risk costs determined for counterparty default risks across the entire portfolio are generally covered by corresponding risk premiums earned in the market or through crossselling revenues.

Depending on the nature, scope and controllability of the risk, a decision is then to be reached on a caseby-case basis as to whether the respective risk should be

  • avoided (risks are deliberately not taken),
  • reduced (reduction of the likelihood of occurrence and/or the level of potential losses, improvement in terms of the controllability of the risks),
  • transferred (risks are transferred to third parties, such as insurance companies), and/or
  • accepted.

Risk capital and liquidity management

Risk capital management – risk-bearing capacity under the capital view

The Group's risk management is based on the results of the risk audit and the material risks derived from it. To this end, processes have been implemented to ensure adequate capital and liquidity.

Risks are only accepted within limits derived from risk-bearing capacity considerations in order to achieve adequate returns, while taking risk/return factors into account. In particular, this is intended to avoid risks that could jeopardise the viability of the business model. Based on the business policy orientation and the risk coverage capital derived from the risk coverage potential, the Executive Board determines the allocation of capital and liquidity required to cover the overall risk profile.

As part of the economic risk-bearing capacity calculations in the capital view, the key types of risks, including counterparty default, market price, liquidity, and operational risks, are quantified. Other risks (in particular strategic risks, sales risks, reputational risks and tax risks) also represent a significant risk type, albeit one that is not quantified with a model. Other risks are incorporated via buffers when calculating the risk-bearing capacity.

In addition to this, sustainability risks, which can occur in the form of transitional or physical risks, can manifest as cross-cutting risks within the aforementioned risk categories, which is why these are considered as risk drivers of existing risks. Furthermore, concentration risks are considered as multidisciplinary risks, taking into account both inter- and intra-risk concentrations.

In addition to this management of economic risk and economic risk capital, risk-bearing capacity is managed on an equal footing on the basis of regulatory capital adequacy requirements and the regulatory risks defined in accordance with the Capital Requirements Regulation (CRR) in the normative risk capacity calculation on the basis of a multi-year planning horizon, whereby adverse developments are taken into account in planning scenarios.

The risk appetite derived from the business and risk strategy is further specified through target settings for capital adequacy, allocated risk coverage potential, defining materiality thresholds and alert thresholds for risk limit utilisation, the overall safety level of risk quantification, as well as other key indicators and the design of the business organisation.

Economic perspective

In the economic perspective, ensuring adequate risk-bearing capacity is guided by the principles of asset protection and protecting creditors from economic losses. The main drivers are appropriate margins relative to the expenses and risks incurred by the MLP FHG. As part of the risk capacity calculation, incorporated risks are therefore quantified/assessed by applying strict risk measures. This includes a confidence level of 99.9%. The risk coverage potential is generally calculated from equity plus hidden reserves/minus hidden liabilities. The risk coverage potential and the risks are determined in the first step via a look-through of the companies in the regulatory group under CRR.

The other fully consolidated subsidiaries of the IFRS-consolidated Group, as well as other companies within the meaning of the Capital Requirements Regulation (CRR), are presented using an equity method, the values of which are derived using a discounted cash flow (DCF) method and the capital asset pricing model (CAPM). The difference between the present value of the equity holdings and the carrying amounts in the consolidated balance sheet of the regulatory scope of consolidation (CRR) is added to or deducted from the risk coverage potential as hidden reserves or hidden liabilities. This equity method serves as the basis for determining equity holding risks.

The hidden reserves or hidden liabilities in the interest book are also added as a difference between the carrying amount and present value and this amount is reduced by the administration costs and risk costs to be recognised. The present value added to the risk coverage potential from the commission business ("transaction-heavy earnings potential") of the regulatory scope of consolidation represents a perpetual annuity adjusted for one-off effects on the basis of a historical 5-year average. Intangible assets of the regulatory scope of consolidation are deducted. The current result is also deducted.

The risk coverage potential determined in the 1st quarter of a financial year is used to derive a risk coverage capital on a pro rata basis, which corresponds to at least the available risk coverage potential during the year. The partial allocation aims to reflect method-related intra-year fluctuations in the present value-based risk coverage potential, thereby ensuring a stable risk decision-making process.

Normative perspective

The normative perspective aims to ensure the continuity of MLP FHG while adhering to relevant regulatory ratios and indicators.

A balance sheet and income statement for the Group and the regulatory scope of consolidation are planned annually for a period of four financial years on the basis of the Long Range Plan (LRP). Planning is performed for both a standard scenario and at least one adverse scenario. The regulatory capital requirements are derived from these plans and then compared to the available own funds. A comparison is made with the regulatory capital requirements and expectations, including the total SREP capital requirement (TSCR), overall capital requirement (OCR) and capital adequacy recommendation. The supplementary conditions which must be strictly met, such as the LCR (liquidity coverage ratio), the sNSFR (simplified net stable funding ratio), the leverage ratio, as well as compliance with the large exposure limits, are also planned and analysed. The impact of the material risks from the economic perspective must also be taken into account in terms of the associated effect on the normative perspective. With this process, an emerging bottleneck in the capital requirements or unfavourable developments in the balance sheet structure can also be detected and addressed early on from the control perspective characterised by commercial law in order to introduce corresponding countermeasures.

Risk-bearing capacity under the liquidity perspective

Within the scope of short-term liquidity control at Group level, liquidity risk is assessed and controlled in particular using the liquidity coverage ratio (LCR). The LCR is based on a supervisory-assumed stress scenario with a 30-day observation period. The additionally implemented approach of control through liquidity at risk (LaR) describes the anticipated maximum net funding requirement resulting from all payments, which is not exceeded with a likelihood of 99.9%.

Structural (mid-to-long-term) liquidity control of the Group is performed primarily on the basis of liquidity maturity balance sheets, which illustrate the development of liquidity over medium and long-term time horizons. Stress scenarios of varying severity are used here.

Concentration of risk

To assess the risk concentrations associated with material risks, MLP initially relies on the risk values collected as part of ongoing risk management or regular risk reporting (for example unsecured loan volumes or risk measures such as value at risk). In doing so, potential risk concentrations are identified and, where possible, assessed on the basis of quantitative standards. The concentrations are differentiated between intra-risk and inter-risk concentrations. The former have an effect within the same risk due to insufficient diversification, while the latter are the result of interdependencies between various risks. A supplementary, qualitative assessment that builds on this is then performed pursuant to the risk tolerances set out in the risk strategy (including an evaluation of any potential need for more stringent control measures).

The following are considered material intra-risk concentrations for material risks:

  • Credit risk: Concentrations on debtors/groups of connected clients; concentrations by risk class, concentrations on the healthcare sector, concentrations on products and individual business partners
  • Counterparty risk: Concentration with regard to large loans to financial institutions
  • Interest risk (periodic): Concentration on short-term maturities on the equity side of the balance sheet
  • Insolvency risk in local currency: Asymmetrical contractual periods between the long-term, less liquid loans/receivables and the client deposits, which generally have a short-term maturity.

The following are identified as significant inter-risk concentrations of material risks:

• Reputational risks: There are dependencies with the insolvency risk, strategic risks and the sales risk. Material risk concentrations are regularly monitored and taken into account in risk management operations.

Stress tests

Pursuant to Section 4.3.3 in conjunction with Section 2.2 of the Minimum Requirements for Risk Management (MaRisk), stress tests are performed regularly and on an ad hoc basis for material risks of MLP FHG. Their effects are also reflected when assessing the risk-bearing capacity.

In principle, univariate and multivariate stress tests can be distinguished based on historical and hypothetical scenarios. When performing sensitivity analyses ("univariate stress tests"), only one risk parameter of one risk type is varied. In this way, the sensitivity of risk parameters and the corresponding increase in capital requirements are analysed in relation to the underlying risk factors. Interactions between various risk factors are not considered here. In scenario analyses (multivariate stress tests), on the other hand, multiple risk parameters are varied simultaneously. The effects are derived from a predefined, typically macroeconomic scenario. Both extraordinary and plausible scenarios are simulated as part of this analysis. The multivariate stress tests also include a climate stress test.

The MLP Financial Holding Group differentiates between two forms of inverse stress tests. In the case of the inverse stress test on risk-bearing capacity, one or more parameters are stressed until the risk coverage potential is fully utilised.

On the basis of the overall risk profile, the stress tests take into account various factors, including writeoffs relating to notable commitments, credit rating downgrades, changes in the yield curve and unanticipated cash outflows, as well as combinations of these risk parameters.

Backtesting and validation

In accordance with Section 4.1 Subsection 9 of the Minimum Requirements for Risk Management (MaRisk), the appropriateness of the methods and procedures used to quantify risk must be reviewed at regular intervals or as required. Any model risks should also be assessed as part of the validation, which should include both qualitative and quantitative components. If there are any indications of deficiencies, these must be appropriately classified, their causes identified and recommendations for action formulated. The affected processes should then be corrected within an appropriate time frame in accordance with the severity of the deficiencies. Management must be informed of the deficiencies identified and the timetable for their rectification. There must be a clear separation of personnel between the developers of the model and the validating employee. The specific procedure must be defined in a procedural instruction for the appropriateness test and validation that is comprehensible to third parties.

Organisation

The Executive Board at MLP SE, which is the superordinate undertaking in the sense of § 10a of the German Banking Act (KWG), is responsible for establishing an appropriate and effective risk management system at the MLP FHG. Set against this background, operational and organisational precautions are put in place.

In order to fulfil its tasks, MLP SE uses a risk organisation that follows the established segment management of financial reporting and includes the sub-segments pursuant to IFRS 8 in the process organisation of Group-wide risk management. The companies above the segments are responsible for the risk management measures to be implemented in the respective sub-segments.

Functional separation

Our risk management concept follows clearly defined basic principles that are applied as binding throughout the entire Group and whose compliance is continuously reviewed. A crucial element of these principles is a clear organisational and operational distinction between the individual functions and activities of risk management.

The operational and organisational structure are regularly reviewed and assessed by Internal Audit and Compliance, and adapted to internal and external developments in a timely manner.

Group Risk Manager

As a member of management at the superordinated undertaking MLP SE, the Group Risk Manager is responsible for the risk monitoring and control activities at MLP FHG. He is kept continuously informed of the risk situation at MLP FHG and provides regular reports on this to the entire Executive Board and Supervisory Board.

Risk controlling function

To be able to address risk topics early on and sustainably throughout the Group, while also increasing risk awareness, an independent risk controlling function has been set up at MLP. This function is responsible for independent monitoring and communication of Group risks.

Risk management and controlling processes

Risk management in the MLP FHG and its local operating implementation in the business units are performed on the basis of the risk strategy. The departments responsible for risk management make decisions regarding the conscious acceptance, reduction, transfer or avoidance of risks - observing the framework conditions specified centrally.

In particular, the Risk Management department at MLP SE, in which the risk controlling function is located at Group level, is responsible for identifying and assessing risks and monitoring limits. This also involves reporting the risks to both the Executive Board and Supervisory Board. Early warning systems assist in monitoring risks, identifying potential problems at an early stage, and enabling timely action plans.

Appropriate guidelines and effective monitoring also ensure that the regulatory requirements for risk management and controlling are observed by the risk organisation units in the MLP FHG.

The methods used in the MLP FHG to assess risks are aligned with practices in the banking sector, as well as recommendations of the supervisory authorities and international standard-setting bodies, taking into account the principle of proportionality. The results determined through the risk models for controlling the risks, as well as the underlying quantification methods, are subject to regular reviews. However, despite careful model development and regular checks, it is conceivable for circumstances to occur that lead to greater losses than those predicted by the risk models.

Controlling monitors earnings trends

Controlling is responsible for the planning processes and the continuous monitoring of earnings trends. The planning process is broken down into short-term and mid-term planning horizons with varying degrees of detail.

To monitor planned and target variables, the revenue and earnings figures actually achieved are compared with the corresponding target figures within the scope of daily, weekly and monthly reporting. This provides continuous transparency for the management team.

Internal controlling system in the financial reporting process

With regard to the accounting and management reporting processes, the Internal Control System (ICS) is used to provide an accurate picture of actual conditions in terms of the net assets, financial position and results of operations at MLP SE and in the MLP Group. The objective of the ICS is to secure complete and accurate recording, processing and documentation of all business transactions in accordance with the regulations, standards and guidelines of applicable legislation and the company's Articles of Association.

The departments involved in the financial reporting process are especially subject to quantitative and qualitative requirements, which MLP meets through a clear organisational, corporate and control structure. To this end, employees tasked with performing the financial reporting process receive regular training. Group Accounting is the central point of contact for all questions in connection with accounting issues.

The checks in the accounting process aim to ensure that financial statements and consolidated financial statements are drawn up in line with the provisions of German commercial law and International Financial Reporting Standards (IFRS), as well as proper and timely internal and external financial reporting. The scope of the checks and responsibilities integrated into the procedures is clearly regulated.

In addition, financial and risk data, which are also subject to the internal monitoring system, are used for the joint management report.

Functional separation, system-based monitoring, the dual-control principle, as well as the audit activities of the Internal Audit department represent crucial control instruments for all important accounting-related processes. The key processes of the accounting-based ICS are documented and specified in work instructions that are regularly updated and published in the organisation manual.

The financial statements of MLP SE and significant Group companies, as well as the consolidated financial statements, are generally drafted using standard software. Group Accounting secures the completeness and accuracy of the relevant disclosures on the basis of the information provided.

The adequacy and effectiveness of the accounting-based ICS are regularly checked and monitored.

Compliance function

A compliance function has been established to counteract the risks that may arise for the MLP FHG from non-compliance with the main legal regulations and requirements. These in particular include supervisory provisions on avoiding money laundering, financing of terrorist activities and other criminal conduct or relating to financial sanctions, embargoes and the account screening procedure (in the following referred to as prevention of money laundering & fraud), prevention of insider trading, provision of ancillary securities services, protection of client assets, data and consumer protection, outsourcing management, as well as all other institute-specific provisions, non-compliance with which could put assets at risk or lead to a material reputation risk. Compliance plays a key part in identifying risk potential through monitoring rules of conduct, as well as within the scope of managing conflicts of interest. As part of the risk management approach, the internal control system and the Internal Audit department represent key components of the processes used to identify new risks and ensure both the effectiveness and appropriateness of the risk management systems.

The Compliance function advises and supports management, as well as the responsible specialist departments. It works towards the implementation of effective procedures ensuring compliance with substantive provisions and internal regulations as well as corresponding control measures performed by responsible units. It also provides regular reports, including ad-hoc reports on its activities to both management and the Supervisory Board as needed. The compliance function also promotes and strengthens the Group-wide risk culture.

This, in turn, also leads to the control and reduction of operational risks.

Information security

The requirements of the EU Digital Operational Resilience Act (DORA) will be observed in the 2025 financial year for the risk management of information and communication technology (ICT), which will further develop the ICT risk management framework and contribute to maintaining an acceptable level of digital operational resilience. MLP uses the existing Three Lines of Defence organisation, where the management - supported in particular by information security as the so-called ICT risk control function monitors digital operational resilience within a decentralised ICT risk management organisation based on central guidelines.

In addition, the requirements of information security must be observed in terms of information security management. These take into account the protection goals of "availability", "integrity", "confidentiality" and "authenticity". If information security incidents violate the aforementioned protection goals, they must be analysed and follow-up measures must be initiated.

Internal Audit

The regular audits performed by the Internal Audit department, which is independent of the operating units in terms of both organisation and function, represent another key aspect with regard to monitoring the quality of our identified risks. Above all, compliance with relevant guidelines is checked, paying particular attention to legal and regulatory requirements.

The Internal Audit department, which operates throughout the Group, also performs regular process and system audits in all sections of the Group and monitors the correction of any issues detected during the respective audits. This also includes auditing of IT systems. The Internal Audit department adopts a riskoriented approach to auditing. It is independent and falls under the direct responsibility of the Chief Financial Officer at MLP SE. Global reports on the audits performed are drafted and presented to the managers responsible. Based on the respective risk content, the elimination of the identified deficiencies is monitored either immediately or in quarterly follow-ups. The Internal Audit department performs regular, Group-wide reporting to the management bodies at the individual companies. In addition to this, the Head of the Internal Audit department is in regular exchange with the Chairs of the individual Supervisory Board Committees.

Risk reporting

A substantial risk reporting scheme forms the basis for appropriate and successful corporate management. This is complemented by an extensive system of internal reporting, which provides the key decision-makers with prompt information on the current risk situation. Risk reports are generated at fixed intervals (monthly or quarterly) or produced ad-hoc, as and when necessary. In addition, planning, simulation and control instruments show possible positive and negative developments to the most important value and controlling parameters of the business model and their effect on the Group's net assets, financial position and results of operations.

Risk reports are submitted to the Executive Board, as well as the Supervisory Board. Prompt and comprehensive information is provided on any changes to relevant influential factors.

Descriptions of risks

The MLP FHG is exposed to financial risks. These in particular comprise counterparty default, market price and liquidity risks. Alongside financial risks, there are also operational and other risks.

The material risks for the Group are identified at least annually or on an ad hoc basis, based on a materiality assessment that considers the impact of the risks on net assets, financial position or results of operations. Since a statement on the materiality is made at Group level, the following risk types are presented per segment for the purpose of transparency. These units significantly contribute to the material group risks.

Types of risk

Segments Counterparty
default risks		 Market price
risks		 Liquidity risks Operational
risks		 Other risks
Holding and Others x x x x
Banking x x x x x
Financial Consulting* x x x x
FERI x x x x
DOMCURA* x x
Industrial Broker* x x
DI Deutschland.Immobilien* x x x

*Specifically the risks of the segments Financial Consulting, DOMCURA, Industrial Broker and DI Deutschland.Immobilien are quantified as equity holding risk.

Counterparty default risks

The counterparty default risk is the risk of a loss due to the defaulting of or deterioration in creditworthiness of a business partner. Alongside the primary credit risk, the counterparty risk encompasses the migration risk, contracting party risk, sovereign risk and equity holding risk. The guarantee risk, country risk, utilisation risk and rental default risk are currently not material.

Counterparty default risks are primarily included in the proprietary and client business positions. The maximum default risk is expressed as the carrying amounts or present values of the financial instruments recognised in the balance sheet (in particular originated loans and receivables, as well as derivative financial instruments and guarantees (off-balance-sheet items)). Lending is generally limited to borrowers domiciled in the Federal Republic of Germany, who make up the majority of the loan-bearing instruments at 96%.

Exposures to shadow banks can arise in lending and proprietary trading, as well as from trade receivables. The trade receivables result from wealth management, investment advice and brokerage as well as from financial portfolio management in the field of financial investments, especially funds, and are of a short-term nature. For this reason, these positions are not monitored separately, but rather they are included in the standard procedure as part of the counterparty default risk. For the sum of exposures to shadow banks from lending and proprietary trading as well as from trade receivables, the Group's large exposure limit applies as a strict upper limit.

Credit risk – Strategy and credit policy

The client credit business, targeting academics and primarily operating in the German core market, mainly focuses on medical practice and mortgage financing, as well as loans with fixed interest rates for five or ten years. These loans are predominantly secured by wealth deposit accounts at MLP Banking AG or by surrender values and investment units in life insurance or unit-linked policies (premium loans), as well as mass-market lending. In terms of strengthening new client acquisition and keeping existing clients loyal, the main focus is on issuing overdraft facilities to the holders of the MLP account and providing credit limits in connection with the MLP Card. In addition to this, the volume of loans and mortgages is to be increased, particularly among the target group of health professionals, to ensure a sustainable increase of company value. Accordingly, the client credit business is only impacted comparatively mildly by ESG risks due to the focus on these domestic client segments, as well as regional and portfolio diversification. These are primarily seen in terms of climate risks due to flood damage or, in the case of transitory risks, the impact on debtors' business models.

Overall, the lending policy at MLP is characterised by only accepting risks that are both known and also appear reasonable in terms of their volume. Bad debts are written down accordingly. Default criteria, such as arrears of 90 days, or criteria of the German Insolvency Code (InsO) lead to default status. If a default event occurs, a scenario-based impairment test should be performed that also includes any collateral realisation.

Credit risk - credit processing

Decision-making authority is defined in the authority regulations, which themselves are based on the risk content and processes of the transactions. Land charges, in particular, serve as collateral for MLP when issuing client loans. A process that is scaled on the basis of volume and employs external support is established for measuring this collateral.

The provision of loans in the client credit business takes the form of credit limits being granted for the individual debtor or debtor unit. Individual credit decisions are reached by specialised employees in accordance with clearly defined rules based on the size, creditworthiness and collateral of the respective debtor. A special scoring process allows fast decisions to be made, in particular for credit cards and accounts in the retail lending business, while also securing consistently high quality.

Our client deposits are reinvested, taking into account an appropriate maturity transformation risk, primarily in the client credit business, but also in overnight and term deposits, bonds, debentures and other financial instruments. Currency and trading risks are not incurred in any significant scope.

Credit risk - Control

The responsibilities in the lending business – from application, through authorisation to completion and including periodic monitoring with regular creditworthiness analyses – have been defined and documented in our organisation manual. Appropriate control metrics are defined and monitored. Early warning indicators are implemented, including monitoring of arrears of 30 days or more, thresholds of internal ratings and concentrations in sectors.

The non-performing loan (NPL) quota is the ratio of bad loans relative to the total volume of loans and credits, including deposits at banks and central banks. At MLP, this ratio is significantly below the regulatory monitoring threshold of 5%. Accordingly, no explicit strategy is defined for the NPL portfolio. The key figure is continuously monitored. Non-performing loans, which are identified at MLP, are transferred to specialist departments, where they are individually managed by experts. In addition to this, potential default risks are continuously measured and evaluated by comparing allowances for bad debts with the credit volumes subject to risk.

For the regulatory group under CRR, the NPL ratio as of December 31, 2024 was 1.2% (previous year: 0.5%) and is therefore significantly below the regulatory monitoring threshold of 5%.

In the portfolio monitoring of the client credit business, the various loan types are regularly measured and presented in the risk report by product class, sector and size class. Individual product classes, sectors and product classes of client credits are currently not limited, although attention is paid to ensuring a balanced mix of the aforementioned attributes. As part of internal monitoring procedures, the privileged mortgages on residential and commercial property are compared against the loan portfolios in the individual field of mortgage lending, lombard loans, premium loans and medical practice financing. Further types of collateral are included as a way of hedging credit commitments, although these are not currently taken into account in the internal system of risk management.

Depending on the rating status, regulatory methods of calculation are used for the economic perspective of the risk capacity calculation.

For the positions classified internally using the VR rating system, the economic risks are calculated on the basis of the IRB method and the present values of the business positions relative to the confidence level of 99.9%. For debtors that have not been classified internally but do have an external rating, a mapping table is used to convert and assess this external rating to the VR rating that MLP uses as the master scale. Based on the probability of default determined in this way and a dedicated assessment of qualitative aspects such as balance sheet KPIs, sector-specific findings and so on, externally classified debtors are treated the same as internally classified debtors and assessed using the IRB method.

The standardised approach to credit risks based on the supervisory formulae as per the Capital Requirements Regulation (CRR) is used for all other unrated debtors.

In addition to this, potential default risks are continuously measured and evaluated by comparing allowances for bad debts with the credit volumes subject to risk. You can find detailed information on the measurement process, as well as the development of loan loss provisions, in the notes.

Additionally, there are specific counterparty risks associated with proprietary trading that extend beyond the risks outlined above. Set against the background of the current market trend, risks in investment management, in particular those resulting from defaults of counterparties, are also limited by the strict quality standards set out in the capital investment directives. As part of this, the allocation of available funds is determined based on specifications regarding investment categories and products, maturities, economic sectors and regions. Funds are generally invested in euros. In principle, all investment decisions must always take into account the documented competencies and other regulations.

Equity holding risk

There are also risks associated with equity holdings. In the normative perspective, these are evaluated using the standardised approach to credit risk. In the economic perspective, the importance of the equity holding risk has been defined more broadly for risk quantification. Risks within the regulatory group under CRR are therefore analysed with a look-through according to the risk types defined in this risk strategy. For the remaining commission-based part of the Group ("non-bank part"), the equity holding risk of the part of the Group not included in the regulatory group under CRR is measured for reasons of information efficiency and consistency with Basel Pillar 1. This is performed on the basis of the business segments or cash-generating units (non-look-through). The basis for the risk assessment is therefore the ratings of the cash-generating units analysed in Group accounting pursuant to IFRS using a business valuation method and the CAPM. Suitable risk factors (for example, an increase in market risk premiums and reduction in cash flows) are applied to the cash flows used or the discount factor on the basis of historical data in a multivariate stress test in order to determine the risk value. In accordance with the general strategic guidelines, the result should be a risk assessment that is at least equivalent to a univariate 99.9% confidence level.

Quantification

As of December 31, 2024, the MLP FHG has a counterparty default risk of €429.0 million (previous year: €368.4 million). Of this amount, the credit risk was €119.0 million (previous year: €117.9 million). The equity holding risk of the "non-banking part" of the MLP FHG, which has been quantified since this financial year, is €310.0 million (previous year: €250.5 million). This increase can essentially be attributed to lower discount factors as a result of lower interest rates.

As of December 31, 2024, the quantified equity holding risk is distributed among the segments as follows, and not directly allocated to the equity holdings in the group under CRR:

Segment1 Risk impact
in € million
2024 2023
Financial Consulting 152.5 124.3
DOMCURA 60.6 49.8
Deutschland.Immobilien 38.9 29.3
Industrial Broker 54.3 44.7
Other equity holdings2 3.6 2.4
Total 310.0 250.5

1 For the Banking, FERI and Holding segments, the counterparty default, market price, liquidity and operational risks are assessed directly. There are no equity holding risks for these segments.

2 Other equity holdings include equity holdings of the MLP FHG pursuant to IFRS that belong to the Banking, FERI and Holding segments but are not taken into account in the regulatory group under CRR.

Due to the continued special risk situation of the Deutschland.Immobilien segment, an increased risk value is quantified using individual risk factors.

Market price risks

The MLP FHG defines market price risks as the uncertainty surrounding changes in market prices and rates (including interest rates, share prices, exchange rates, commodity prices, as well as option transactions and implicit options), the correlations between them and their volatilities. Alongside interest rate risks, there are also credit spread risks on own proprietary investments. The periodic and the present value interest risk were identified as material risks for the Group. The investment currency is generally the euro. The institute in the MLP FHG is a non-trading book institution.

In the MLP FHG, market risks essentially comprise the incomplete congruency of interest rate agreements between loans granted by MLP and their refinancing. In addition to this, there are market price risks within the scope of business on own account. There are currently only very minor open exposures in foreign currency in the portfolio. There are also no appreciable derivatives positions.

Possible effects of various interest development scenarios at Group level are presented via planning and simulation calculations. The basis of this is our interest management tool, which makes risks and their effects transparent in complex interest scenarios.

Within this framework, the changes in the present value of all items in the interest book are disclosed in relation to equity for economic management purposes using the interest rate steps specified by the Federal Financial Supervisory Authority via the so-called EVE in the regulatory shock scenario. The simulation is conducted across all interest-bearing and interest rate-sensitive positions of the regulatory group under CRR. The bank-specific scenario, which is constantly re-parameterised and reflects an appropriately long market data history, is relevant for economic management.

Various guiding principles have been implemented to control the interest rate risk. These include the strategic positioning as a non-trading book institution, management of the difference in asset-liability duration, management of the terms remaining to maturity of the transactions and the target bandwidth of the present value outlier test (Supervisory Outlier Test – Economic Value of Equity, abbreviated to SOT-EVE) and the periodic outlier test (Supervisory Outlier Test – Net Interest Income, abbreviated to SOT-NII).

Credit spread risks in the asset ledger are not considered to be material, as a holding strategy is pursued for bonds in the portfolio, meaning that the full nominal value is generally recognised at maturity. Spread risks may therefore temporarily affect present values but will not materialize as reduced repayments over the total period. Nevertheless, these are monitored in the form of sensitivity analyses.

Equally immaterial or non-existent are: foreign currency risk, market value risk, real estate in the company's own portfolio (in particular due to hidden reserves), option risks, as well as settlement and delivery risks.

Quantification of interest risks

With the transition to economic risk management, the present value interest risk is determined from the more conservative result of the two internal risk scenarios of interest rate increase and interest rate decrease. The present value interest risk of the companies in the risk look-through is €11.5 million as of December 31, 2024 at a confidence level of 99.9% for the interest rate increase scenario (previous year: €15.1 million).

As of December 31, 2024, simulations were modelled in the scenario of rising interest rates on the basis of 1 day or 10 years at +400 BP or +302 BP were simulated in the 1-day and 10-year interest rate rise scenario (previous year: +400 BP and +302 BP). In the interest rate cut scenario, it was -429 BP and - 164 BP for 1 day and 10 years respectively (previous year: -430 BP and -166 BP).

Interest rate risks of the MLP FHG in the SOT-EVE supervisory outlier test

Simulated scenario Effect in € million
2024 2023
Parallel shift +200BP -9.8 -11.0
Parallel shift -200BP 11.9 13.8
Steepening of the interest rate curve -10.7 -11.1
Flattening of the interest rate curve 9.0 9.2
Short rates shock up 5.6 5.3
Short rates shock down -5.7 -5.5

The SOT-EVE (present value) as a ratio of the impact in the worst-case scenario to core capital is therefore 2.9% (previous year: 3.3%). The relevant scenario as of the reporting date was "steepening of the yield curve" (previous year: Parallel shift +200 BP for the interest rate risk coefficient).

The SOT-NII (periodic), which represents a change in the rolling 12-month net interest income with constant total assets in relation to core capital, is 4.68%. This is due to the parallel shift -200 BP scenario and was to be determined for the first time in 2024.

Liquidity risks

The MLP FHG defines liquidity risks as the uncertainty regarding the insufficient availability of funds to fulfil payment obligations or to reduce exposures, or the availability of funds only at less favourable conditions. Key components of the liquidity risk include both the insolvency risk (operational liquidity risk) and the refinancing risk (structural liquidity risk).

Operational liquidity control

Within the scope of strategic or short-term liquidity control at Group level, the liquidity risk is assessed and controlled, in particular, using the liquidity coverage ratio (LCR). Liquidity at risk (LaR) also describes the expected net funding requirement from unplanned payments that will not be exceeded with a specified probability. The utilisation of liquidity at risk is considered "appropriate" at a confidence level of 99.9% for values up to 90% and is rated with the traffic light colour green. Values of 90%-100% are rated as "tense" and assigned the traffic light colour yellow. If the utilisation rate rises above 100%, the traffic light colour red indicates "exceeded", which may, for example, require an adjustment of the disposable liquidity via a management resolution.

Structural liquidity control

Structural (mid-to-long-term) liquidity control of the Group is performed on the basis of liquidity maturity balance sheets and projections, which highlight the anticipated development of liquidity over various time horizons (up to three years). The liquidity maturity balance sheet compares a forecast net profit or loss with the refinancing potential (free liquidity reserve) for each time horizon under stress assumptions. To this end, the assets that are available for sale in the short-term and mid-term and not tied up in operational liquidity control are compiled and assigned to classes on the basis of their speed of sale.

The net stable funding ratio (NSFR) also compares the available refinancing with the required stable refinancing. This performance indicator serves as a key balance sheet ratio. The simplified net stable funding ratio (sNSFR) is used to calculate it.

The general aim when examining the liquidity risk within the scope of the risk-bearing capacity is to determine the additional costs that occur in the context of the structural refinancing requirements. To determine the additional refinancing costs, the liquidity value-at-risk (LVaR) is calculated for the capital requirements which are determined on the basis of the liquidity flow statement, at a confidence level of 99.9%. To this end, the additional costs accrued across all refinancing instruments are added together. Alongside the compressed LVaR key performance indicator, the distribution of the capital requirements across the refinancing instruments and their utilisation is also presented.

In addition, the impacts of various scenarios on cash flows, and therefore also on MLP's liquidity situation, are analysed using liquidity maturity balance sheets. The additional monitoring metrics (AMM) serve as supplementary information here.

Categorised as immaterial: The insolvency risk in foreign currency and the liquidity spread risk.

Quantification

Calculation of the LVaR as of December 31, 2024, indicates a positive compliance with limits for the year. Similarly to the previous year, a survival horizon of 12 months was always maintained in the financial year. There are no (previous year: none) expected additional refinancing costs. If, contrary to expectations, net cash outflows that go beyond the estimated levels occur, further liquidity reserves are available.

The liquidity risk in the MLP FHG results primarily from MLP Banking AG as the depository institution. The refinancing structure is based largely on client deposits here. Appropriate short and medium-term credit lines have also been agreed to safeguard against a possible short-term liquidity shortfall.

Alongside the assumed development in standard scenarios, we have also defined stress scenarios to simulate potential increases in liquidity requirements as a result of a negative change in the market environment. These enable us to introduce any countermeasures deemed necessary in good time.

MLP Banking AG has established a simple allocation system to allow the internal allocation of the respective liquidity costs, liquidity benefits and liquidity risks to be monitored and controlled.

As of December 31, 2024, the MLP FHG had a refinancing cost risk of €0.0 million (previous year: €0.0 million).

The free liquidity reserves of the MLP FHG were €1,164.9 million on the reporting date (previous year: €1,009.2 million).

Operational risks

By analogy with Article 4 of the CRR, operational risks are understood as the risk of losses occurring as a result of the inadequacy or failure of internal processes, systems or people, or as a result of external events. This definition includes legal risks.

Within the Group, operational risks are identified and evaluated on a decentralised basis in the individual organisational units of the segments and the main companies identified via the risk organisation in the form of self-assessments and damage data pools. This is based on a Group-wide inventory of operational threats. Plausibility checks on risk measurements by organizational units are conducted during risk workshops and subsequently consolidated into an overall rating for the Group.

Irrespective of the specific risk profile, the following core statements apply to all companies in the MLP FHG:

  • All material operational risks are to be identified and analysed with regard to their anticipated or incurred damage, as well as their anticipated or incurred frequency,
  • For risks whose occurrence is unlikely but which exhibit a high or very high damage potential, the option of performing a risk transfer should be considered, in particular through appropriate insurance policies,
  • Process improvements, adjustments to the IT system landscape, employee training and similar measures should, in particular, be identified for risks with a high likelihood of occurrence but low damage potential with the objective of reducing errors,
  • Suitable risk prevention measures should be implemented immediately for risks with a high likelihood of occurrence and high damage potential for the MLP FHG, if necessary, involving business continuity management,
  • The efficiency of all risk management measures should be reviewed from a cost/benefit perspective.

Reduction of the operational risk, together with a reduction in the frequency and level of associated losses, is primarily to be achieved through the implementation of continuous improvement of control actions, such as digitalisation of business processes. Further safeguarding measures include risk transfer through the conclusion of insurance policies and consciously avoiding high-risk products. In addition to this, contingency plans are in place for critical business processes to secure continuation of business operations.

Risks from internal procedures

Risks resulting from internal procedures can, in particular, occur due to processing errors within the internal organisation and communication, as well as in Sales, Compliance, Data Protection & Money Laundering and due to contractual obligations/arrangements.

MLP uses both internal and external employees, as well as structural and technical resources to perform its administrative activities. We protect ourselves against damage claims and a potential liability risk through comprehensive insurance cover, which is subject to ongoing monitoring.

Business impact analyses (BIA) are used to identify time-critical company processes, whose failure can have a significant influence on the Group's business activities. To this end, suitable measures are defined in the form of BCM strategies. In the event of an emergency, these measures allow business operations to continue, albeit with reduced performance. Time-critical processes and the effectiveness of the defined measures are subject to regular monitoring and continuous development. BCM documentation is available for the business units and employees.

The Internal Audit department, which operates throughout the Group, also performs regular process and system audits in all sections of the Group and monitors the correction of any issues detected during the respective audits. This also includes auditing of IT systems.

A possible error in client consulting, investment and acquisition brokerage or finance portfolio management and associated claims for damages can present a consulting and liability risk. The potential consulting risk is minimised by securing continuously high-quality consulting which, among other things, is backed up by IT-supported tools. Consultations with clients and the results of these are documented in accordance with legal requirements.

Within the scope of defined adjustment processes in the event of changes to operational processes or structures, acquisitions and mergers, as well as the process for introducing new products – or rather when expanding activities to include new markets or via new sales channels – it is ensured that prior to implementing planned measures, potential key risks are identified and a corresponding concept is drawn up involving all relevant functions at MLP.

Risks from human errors and employee availability

Risks from human error and employee availability occur in particular due to a lack of employee qualification and availability, as well as unauthorised, fraudulent and criminal actions, insufficient health & safety at work and other human error.

The adequacy of staffing levels and sufficient qualification/training of employees at MLP are ensured by the responsible specialist departments. The adequacy of staffing in terms of type, level and planned Group development is checked regularly at the very least during the annual planning process. In this context, key positions have been identified and defined with the objective of further reducing staffing risks through suitable risk control measures. The requirements regarding the qualification of all employees, but in particular those tasked with working in the loans and commercial business, are set out in differentiated job descriptions in the organisation manual.

As part of their responsibilities, those employees tasked with assuming, controlling and monitoring risks, as well as their substitutes, have comprehensive product know-how, as well as expertise in the commercial, valuation and control techniques employed. This applies in particular to the Heads of Internal Audit, Compliance and Risk Controlling in the sense of Germany's Minimum Requirements for Risk Management (MaRisk). As a general rule, the available personnel capacities are structured in such a way that necessary procedures are still securely maintained, even when employees are unexpectedly unavailable for work.

Demographic changes and their effects on the workforce structure are systematically reviewed by MLP. We used a staff turnover simulation to analyse various scenarios and learn more about the effects on the workforce (including key positions). A dynamisation of the age curve, as well as an increasing average age of the workforce, can be observed here. To counter this trend and continue thriving in the face of increasing competition, the material and non-material framework conditions are continuously optimised for the employees. The aim is to further strengthen our profile as a family-friendly employer offering flexible models in terms of working hours and places of work, as well as family-friendly conditions and fringe benefits. This was manifested with the workandfamily audit successfully performed in 2019, as well as the recertification of the audit in 2022. The certificate as a family-friendly employer is combined with an agreement on various measures and targets for further development of the family-friendly workplace over the course of the next three years. Alongside this, MLP traditionally invests in sustainable recruiting of talented young employees and, in addition to various training professions, also offers a university of cooperative education degree programme with many different fields of specialisation. The changes to the organisational structure of the HR department were completed in December 2021, also with the objective of further expediting the specialisation and professionalisation of the employees responsible for recruiting.

In line with the requirements regarding pay systems, these are set out in such a way that negative incentives which could otherwise encourage managers and employees to enter into disproportionately high exposures are avoided and no risk-taking is encouraged above the level of the risk appetite set out by the Executive Board. To avoid incentives of this kind for employees, in particular those holding positions of responsibility, attention is paid when setting out such pay and incentive systems to ensure that these do not contradict the objectives defined in the strategies and that any risk of conflicts of interest is ruled out. Any change in strategy triggers a simultaneous review and, where necessary, adaptation of pay and incentive systems.

With regard to variable pay components, safeguards are in place to ensure that these are not based on short-term success, but rather on mid-term and long-term success. In addition, the pay system is set up in such a way that employees with variable compensation components are also affected by negative development of business initiated by them and that employees of departments arranged downstream of the initiating departments are also compensated appropriately on the basis of their responsibility.

The Supervisory Board is responsible for the pay and incentive systems at management level, while the management team is responsible for the system used for employees. The pay systems are reviewed at least once a year by the Legal department and any necessary amendments are implemented.

The greatest asset of MLP is its consultants and employees, which is why special emphasis is placed on the qualification of our employees and managers. Nevertheless, human errors cannot be completely ruled out. In this context, we employ an open culture of constructive criticism with the objective of detecting mistakes early on, continuously improving our processes and strengthening our innovative capacity. This is consistent with MLP's mission statement, its core values of performance and trust, as well as its leadership principles. The risk of staff shortages is reduced through active personnel and succession planning, as well as targeted personnel marketing measures.

Employees working with confidential information undertake to observe the respective regulations and handle the information responsibly. A clear separation of management and control functions restricts the risk of breaching internal and external regulations. Defined deputisation regulations secure our business and decision-making processes.

IT risks

IT risks result, in particular, from any failure of critical IT processes, applications, IT systems, as well as IT infrastructures, including potential cyberattacks.

The MLP FHG pursues an IT strategy in order to effectively minimise potential IT risks. When selecting IT systems, the primary focus is on sector-specific software. If necessary, business-specific proprietary IT applications are developed by qualified internal and external specialists. The correct functioning of IT systems is secured by performing comprehensive system tests and pilot phases before they are commissioned. Databases are protected from a potential data loss by conventional means through the outsourcing of data centre operations to service providers with various locations and Cloud platforms, back-up systems and mirror databases, as well as establishment of a defined contingency plan.

IT systems are protected from unauthorised access through the access and authorisation concept, malware protection that is aligned to the current state of the art, as well as other comprehensive security systems. Due to the existing virtualisation of the workplace, the option for location-independent work is technically feasible.

MLP operates a Group-wide information security management system in order to identify and appropriately address potential information security risks arising from its own operations or those of IT service providers. This is incorporated into the assessment and control of operational risks. In terms of protective measures, we ensure that our technology remains state-of-the-art and have this regularly reviewed by external experts. Digital innovations are developed in a laboratory environment as a way of keeping risks to a minimum during the development phase. In a separate strategy on digital operational resilience, with the aim of achieving an appropriate level of resilience, a framework is provided that in particular includes the following aspects: Target protection measures for ICT systems and ICT third-party service providers, especially for critical or important functions, to reduce ICT risks; setting up and operating a process for detecting, resolving, and reporting ICT-related incidents. MLP is thereby preparing itself more effectively to combat cyber threats, which are posing an ever greater threat.

Risks from external events

Risks resulting from external events include outsourcing, legislation and politics, criminal and fraudulent activities (external), as well as natural disasters and force majeure.

The trend towards industrialisation and a reduced vertical range of manufacture has increased in the financial services sector. Companies are increasingly focusing on their core competencies, i.e. production of financial services products, support and information services, specialist consulting expertise and sales expertise. In this market environment, MLP makes use of external partners for activities that are not part of its core business. Based on Germany's Minimum Requirements for Risk Management (MaRisk), key outsourcing activities in the MLP FHG are incorporated into risk management within the standard scope of risk controlling and management processes with continuous risk identification, assessment, control and reporting. MLP has clearly regulated responsibility for the outsourced processes and installed a central system of outsourcing management here. This ensures that any potential organisational, structural or process-based risks that may occur due to outsourced business activities are closely controlled.

In addition to this, corresponding insurance policies have been concluded where appropriate to minimise risks from external events such as fraud, burglary, theft or damage due to force majeure.

Internal security measures are also set up in such a way that any attempts at fraud, burglary or theft are prevented before they occur. In order to prevent external cyber risks, such as hacker attacks and malware, appropriate measures are taken, including the implementation of common standards such as firewalls, intrusion prevention/detection systems, antivirus software, as well as active patching and vulnerability management of systems.

To ensure maintenance of critical processes in all cases, the potential consequences of external events are assessed within the scope of the Business Continuity Management (BCM) system and corresponding plans of action drawn up.

Potential risks arising for the institutes in the MLP FHG from fraudulent or other criminal conduct are identified and regularly assessed within the scope of the risk analysis performed to identify potential hazards caused by criminal conduct (both internally and externally). Both the risk assessment and the individual measures implemented to avoid criminal conduct are performed by the relevant section at the respective central office pursuant to § 25h of the German Banking Act (KWG) and are also incorporated into the operational risk audit process.

Legal risks

Legal risks arise from the above-mentioned categories if they are of specific legal relevance.

The management of legal risks is essentially handled by the Legal department. In addition to consulting on corporate decisions and designing business processes, its tasks include following and assessing current legal disputes. Possible legal risks are to be identified at an early stage and possible solutions for minimising, limiting or preventing such risks are to be presented. The Legal department coordinates the commissioning and integration of external lawyers. Within the scope of risk mitigation, the Legal department checks and monitors the existing insurance coverage for economic loss and initiates any adjustments that may be necessary. According to our review, the pending or threatening legal proceedings against MLP FHG do not represent risks that could endanger the Group's continued existence.

Due to its authorisation to conduct banking and financial service transactions, the MLP FHG is subject to special risks with regard to potential non-compliance with regulatory requirements. This also applies to statutory solvency requirements, which require a minimum regulatory capital. Comprehensive guidelines and workflows have been implemented to comply with regulatory requirements and for the functions Compliance, Money Laundering and Fraud Prevention, as well as Data and Consumer Protection. The objective of these guidelines and workflows is to secure compliance with and monitoring of the legally stipulated requirements by the specialist departments and staff units responsible.

The Executive Board has also set up a compliance function, the duties of which include the identification and monitoring of the key legal provisions and requirements. Non-compliance can potentially jeopardise the assets of the MLP FHG and can lead to significant reputation risks. The Compliance function advises and supports management, as well as the responsible specialist departments. It works towards implementation of effective procedures ensuring compliance with substantive provisions and internal regulations as well as corresponding control measures performed by responsible units. It also provides regular reports, including ad-hoc reports on its activities to both management and the Supervisory Board when and where necessary. The compliance function also promotes and strengthens the Group-wide risk culture.

Active knowledge management in the specialist departments and, at the same time, continuous observation of legal developments by our Legal and Compliance departments ensure that any potential regulatory changes can be detected early on. As part of our audit management, the implementation of new legal requirements and findings of external auditors are controlled through our Group-wide MaRisk Steering Committee. Tasks are assigned to relevant functions and their progress regularly and actively tracked. In particular, those issues that have significant effects on the MLP Group and involve multiple specialist departments are assigned to this programme.

Quantification

Operational risks are quantified using a dedicated model. This is carried out on the basis of the average or maximum frequency of occurrence and amount of loss from the results of the self-assessment and the historical loss data.

As of December 31, 2024, the total operational risk according to the MLP FHG's internal calculation from the risks described above was €3.8 million (previous year: €3.8 million).

Other risks

Other risks include strategic risks, sales risks, reputational risks, pension risks and tax risks. The strategic risks or "business risks" also include potential step-in risks for a non-consolidated company insofar as the support is provided without any contractual obligation. In particular, the measured equity holdings of the Group companies in the non-look-through are subject to such business risks. As part of Group management, other risks are taken into account using a generic risk amount ("risk buffer") in the sense of Section 4.1 Paragraph 5 of the Minimum Requirements for Risk Management (MaRisk). 50% of the transaction-based earnings potential is retained for other risks within the regulatory group under CRR. For other immaterial risks of MLP FHG, the minimum of €10 million or 1% of the risk coverage potential is retained.

Strategic risks

Strategic risks include risks that result from the business model in interaction with the external environment. These include, for example, the behaviour of competitors and clients, as well as technological advancements and risk factors arising from the ESG context. Achieving the planned results can unexpectedly be jeopardised as a result of inadequate alignment of the company with the respective business environment, which may have changed abruptly. Secondly, a focus of this kind, for example on individual products or a specific client segment, harbours the risk of excessive dependence of operating results on the contribution of these products or client groups to the overall success. Risks due to earnings concentrations can potentially occur as a result of changes in the market. Since these risks are reflected in the expected cash flows, they are implicitly recognised in the analysis of the equity holding risk of the MLP FHG companies not included under the CRR group. In addition, increased business risks must be assumed in the economic view of the earnings potential from commission-based business. Risks that materialise can directly limit future commission flows.

Strategic risks can also occur as a result of an inadequate strategic decision-making process, which is for example associated with unforeseeable discontinuities in the market, products and services that have not been properly matched to the market or poor implementation of the chosen strategy, as well as monitoring of its implementation.

Strategic risks: Overall economic risks

Geopolitical risks and macroeconomic changes in economic and political factors can also have an impact on MLP's business model and development. Both national and international developments in the political, economic and regulatory arenas, as well as business developments and other requirements in the financial services market are therefore monitored. The knowledge bundled at FERI offers us particular support in this regard.

Strategic risks: Business environment and sector-related risks

The crises of recent years have also further intensified the competitive situation for the sale of financial services in Germany and accelerated consolidation of the highly fragmented market. New competitors have entered the market in the form of FinTechs and InsurTechs, focusing on sub-processes in the financial and insurance sectors. Social changes, judgements, new regulatory requirements and competitors, as well as discernible trends in client behaviour, are all factors which can have a significant influence on MLP's business. One example is the discussion about a ban on commission for finance brokers. MLP considers itself well prepared for the changes that lie ahead. The quality of our consulting and our products, as well as our focus on selected client groups, give us a very good market position. Furthermore, the consolidation of the market provides acquisition opportunities for the Group. Within the scope of its business activities, MLP in particular provides wealth management, old-age provision and insurance services. The interest rate development is the determining factor for further development in these markets. The real estate segment will remain important for the Group if the market situation stabilises, as this segment offers an additional investment option as part of the holistic investment strategy.

Strategic risks: Corporate strategy risks

Corporate strategy risks largely occur in the erroneous assessment of market trends and, consequently, the erroneous alignment of business activities. Strategic risks also arise from unexpected changes in market and environmental conditions as well as the shareholder structure of MLP SE with negative effects on the results of operations.

Corporate strategy control at MLP is primarily the responsibility of the Executive Board or the governing body of the respective unit within the Group. Changes and developments in both the national and international markets, as well as the business environment, are analysed based on intensive observation of the competitive environment. Measures are then derived to ensure the Group's long-term corporate success. Target values are laid down based on a projected assessment of success factors. The achievement of these values is constantly monitored. The strategic positioning is regularly reviewed on the basis of target/performance comparisons.

All key value drivers in MLP's business model are subject to continuous analysis and active management via a comprehensive system of central and local controlling. The Group strategy and the measures it involves, all of which are set out by the Executive Board, are reflected within the scope of budget and long-term planning as a way of analysing their effects on the business situation. Key developments of internal value drivers, as well as external framework conditions are also modelled proactively using planning and simulation instruments and are then subjected to various scenarios to determine their earnings sensitivity.

Continuous reporting is performed to record the anticipated course of business, so that action can be taken quickly in the event of any negative deviations.

The strategic risk is classified as material. It must therefore be taken into account in risk management. This takes place in the form of a risk buffer as part of the ICAAP.

Sales risks

Sales risks have a similar effect on the income statement as strategic risks. However, these are primarily driven by external factors, such as a recession leading to reduced demand or ineffective positioning/services by the sales force. In this respect, the potential measures differ quite markedly.

The risk is classified as material. It must therefore also be taken into account in risk management. This takes place in the form of a risk buffer as part of the ICAAP.

Reputation risks

Reputation is defined as the reputation of MLP as a whole or of individual Group companies in terms of expertise, integrity and trustworthiness that results from the perception of various stakeholder groups. The stakeholders for example include clients, employees, consultants, heads of the university teams and branch office managers, shareholders and creditors, other institutes, ratings agencies, the press and the world of politics. Reputation risk is understood to mean an existing or future risk regarding income, equity or liquidity as a result of reputation damage.

Management of reputation risks in the MLP FHG is always performed decentrally within the scope of a defined regulatory cycle following the principle of managing operational risks. Alongside reactive control directly after the occurrence of a case of damage, preventive risk management is particularly important here.

The potential risk of mistakes made while providing consulting services to our clients also impacting our reputation, is minimised by securing continuously high-quality consulting. The instruments used to secure this high level of consulting include IT-based consulting tools. In addition to this, comprehensive documentation is provided of results that have been achieved during consultations with clients.

In terms of reputational risk, there are significant inter-risk concentrations with insolvency risk, strategic risks and sales risks. These are therefore taken into account in the risk management process in the form of stress tests.

Tax risks

Tax risks are defined as the risk arising from interest on arrears or fees resulting from tax payments and tax arrears, as tax arrears or refunds balance out in present value over time as opposed to being recognised directly in the tax return. Tax risks can arise, for example, from an unexpected or unplanned tax burden due to current legal developments or other events.

Changes that emerge in the tax and accounting law are continually checked and reviewed with regard to potential effects they may have on the Group. The company's compliance with fiscal requirements is checked by internal and external experts in accordance with the tax regulations, as well as the documents pertaining to these that are issued by the fiscal authority. Corresponding provisions are formed for subsequent payments that are to be anticipated. Developments in the accounting law are monitored and implemented in the respective specialist departments.

Tax risks are classified as a material risk. They must therefore also be taken into account in risk management. This takes place in the form of a risk buffer as part of the ICAAP.

Cross-cutting risks

Sustainability risks

We consider sustainability risks to include events or conditions resulting from the environment, social issues or corporate management, whose occurrence can have actual or potentially significantly negative effects on the net assets, result of operations or liquidity situation; this includes climate-related risks in the form of physical risks and transition risks. Sustainability risks can manifest themselves in all risk types, which is why we do not rate them as a dedicated risk type, but rather based on issues encountered within the scope of the respective relevant risk type.

Identification of sustainability risks in existing risk types occurs based on ESG risk drivers. They are taken into account in risk management in accordance with the principle of materiality. Sustainability risks were identified as immaterial within the scope of the risk audit. A climate stress test is also being derived and calculated to improve identification of these cross-sectional risks.

Immaterial sustainability risks, for example, include risk drivers such as severe weather incidents, in particular flooding, in the counterparty default risk or the accusation of greenwashing in the other risks or reputational risks.

Concentration risks

To assess the risk concentrations associated with material risks, MLP initially uses the risk values defined within the scope of ongoing risk management or regular risk reporting (for example unsecured loan volumes or risk measures such as the value at risk). In doing so, potential risk concentrations are identified and, where possible, assessed based on quantitative standards. The concentrations are differentiated between intra-risk and inter-risk concentrations. The former have an effect within the same risk due to insufficient diversification, while the latter are the result of interdependencies between various risks. A supplementary, qualitative assessment that builds on this is then performed pursuant to the risk tolerances set out in the risk strategy (and therefore also an estimate of a potential need for action with regard to more stringent control measures).

The following are considered significant intra-risk concentrations for material risks:

  • Credit risk: Concentrations on debtors/group of connected clients; concentrations by risk class, concentrations on the healthcare sector, concentrations on products and individual business partners
  • Counterparty risk: Concentration with regard to large-scale loans issued to financial institutions
  • Interest risk (periodic): Concentration on short-term maturities on the equity side of the balance sheet
  • Insolvency risk in local currency: Asymmetrical contractual periods between the long-term, less liquid loans/receivables and the client deposits, which generally have a short-term maturity.

The following are identified as significant inter-risk concentrations for material risks:

• Reputational risks: There are dependencies with the insolvency risk, strategic risks and the sales risk.

In the case of material risks, significant risk concentrations are taken into account appropriately in the management of the ICAAP / ILAAP (for example through stress scenarios) or managed through adequate metrics or analyses.

Superordinate and macroeconomic risk position

Following the strong tightening of monetary policy to combat high inflation, the central banks of the major industrialised countries have now embarked on a course of monetary easing and have made their first interest rate cuts. So far, monetary policy has remained restrictive. In 2025, a continuation of monetary easing is initially expected, without returning to the low interest rate levels. This is because, in the long term, a number of structural factors are pushing in the direction of systemically higher inflation. These include the increasing shortages in the labour market due to demographic trends, the resulting wage increases, higher costs due to increased deglobalisation trends and the enormous investments required to manage the ecological transformation.

Due to a sustained phase of economic weakness, mainly in the manufacturing industry in Germany, there is a possibility of increased impairment requirements in these sectors of the economy, although these do not represent the focus of MLP's business. In the past, the German economy benefited from the strong position of industry and its strong foreign trade orientation, including the dynamic development of the Chinese market. These long-standing advantages currently represent disadvantages for the German economy.

In 2025, the focus is likely to shift towards global trade: in the hegemonic conflict between the USA and China, the process of a mutual decoupling of economic areas is expected to continue and new trade barriers are possible as general shock factors for the global economy. New geopolitical conflicts appear particularly likely in East Asia and could once again have a significant impact on value chains all the way to Europe. All of these factors can have a noticeable impact on MLP's economic environment, as well as the economic situation of business partners.

The public debt of major industrialised nations such as the USA, France and Italy, which is over 100% of GDP, offers potential for new sovereign debt crises. However, the danger is not limited to states alone, as it could also result from the private sector, as was the case in 2007. Another threat to the Group is increasingly disproportionate and costly regulation. Countertrends are currently only moderately apparent, meaning that a further increase in bureaucratisation is to be expected.

The real estate sector seems to have bottomed out and, given interest rate expectations, a further deterioration is considered rather unlikely. Opportunities will continue to be utilised if they fit into the Group's strategic framework.

Risk-bearing capacity & capital requirements

The economic risk-bearing capacity concept ensures that the risks assumed are always adequately covered by risk coverage potential. Within the framework of the economic risk-bearing capacity concept, MLP FHG uses a present-value approach to manage material risks with a confidence level of 99.9% and compares them with the risk coverage potential derived from the present value.

Risk coverage potential and risk coverage capital

Among other items, the risk coverage potential of the economic perspective, determined in the financial year 2024 using the present value method, includes the following positions:

  • Balance sheet (Group) equity and carrying amounts of all assets and liabilities (for present valuebased risk-bearing capacity) as per the CRR
  • Present value contribution of hidden reserves and liabilities, including the present value contribution of all assets and liabilities as well as off-balance sheet items (or hidden reserves/charges from the value difference between the carrying amount and present value in the case of present value-based risk-bearing capacity), and hidden reserves from the measurement of the equity holdings of the group under IFRS without companies of the regulatory group under CRR and minus direct equity holdings in the regulatory consolidated balance sheet (CRR) (since no look-through was performed for the non-regulated companies of the group under IFRS).
  • Deduction of the present value for anticipated inventory liquidation costs, in particular the present value of administration costs for continuation and administration of the items, expected losses in the lending business, as well as anticipated operational risk of the regulatory group under CRR.
  • Deductions for cautious valuation, in particular deduction of current earnings, as well as intangible assets of the regulatory group under CRR.
Position (in € million) Dec. 31, 2024 Dec. 31, 2023
Balance sheet equity (group under CRR) 617.4 575.3
Present value of undisclosed reserves and undisclosed liabilities 583.4 460.9
Present value of expected inventory liquidation costs -121.3 -102.8
Deduction for conservative valuation -173.8 -174.7
Other positions 37.7 28.0
Risk coverage potential 943.4 786.6
Allocated risk coverage capital 710.0 690.0
Risk buffer -29.3 -24.3
Total limit for quantified risks 680.7 665.7

Risk coverage capital

A total of €710.0 million (previous year: €690.0 million) from the risk coverage potential will be utilised as risk coverage capital. The risk coverage capital is used to cover the risk types classified as material by MLP. These are the counterparty default risk, the market price risk, the liquidity risk, as well as operational and other risks. The risks undertaken were consistently covered by the established risk limits throughout the financial year.

After deducting the total risk buffer for other risks of €29.3 million (previous year: €24.3 million), this results in the following limit utilisations for the MLP FHG as of December 31, 2024:

Risk type (in € million) Dec. 31,
2024		 Dec. 31, 2023
Limit Risk Utilisation Limit Risk Utilisation
Counterparty default risk 537.8 429.0 79.8% 466.0 368.4 79.0%
Market price risk 61.3 11.5 18.8% 59.9 15.1 25.2%
Operational risk 61.3 3.8 6.1% 119.8 3.8 3.1%
Refinancing cost risk 20.4 0 0.0% 20.0 0.0 0.0%
Total 680.7 444.3 65.3% 665.7 387.3 58.2%

The special risk situation in the DI Deutschland.Immobilien segment (DI), primarily driven by continued adverse trends in the real estate market, is addressed by implementing more stringent assumptions regarding the quantified equity holding risk. The equity holding risk of DI is therefore increased to the contributions based on the equity method.

Capital adequacy requirements, capital control under banking supervisory law and normative control perspective

A primary objective of equity management is to ensure that the statutory solvency requirements for the operation of banking and financial services businesses, which stipulate a minimum capital adequacy, are met and that the quantitative and qualitative equity base is strengthened. At MLP, the assessment for minimum capital requirements in compliance with statutory solvency requirements has been conducted on a consolidated basis (group) since January 1, 2014, in accordance with the Capital Requirements Regulation (CRR), Regulation (EU) No. 575/2013 of the European Parliament and the Council of June 26, 2013, on prudential requirements for financial institutions and investment firms, as per Articles 7 and 11 et seq." Since January 1, 2017, MLP has been drafting an independent IFRS consolidation on the regulatory scope of consolidation. The disclosures are based on the legal foundations in place and valid on the reporting date.

In accordance with the legal provisions associated with the Capital Requirements Regulation (CRR), MLP employs both an appropriate organisational structure and appropriate internal control/monitoring procedures such that proper consolidation of the corporate group is ensured.

The relevant group pursuant to § 10a (2) of the German Banking Act (KWG) in conjunction with Article 11 of the Capital Requirements Regulation (CRR) includes MLP SE, Wiesloch, as the superordinate undertaking, MLP Banking AG, Wiesloch, FERI AG, Bad Homburg v. d. Höhe and FERI (Luxembourg) S.A., Luxembourg.

The following means and measures for controlling and adjusting the equity capital of the Group are available to MLP: (I) issuing new shares, (II) retention of a portion of the earnings, and (III) making transfers to the statutory reserve to strengthen Tier 1 common capital.

As per Article 25 et seq. of the Capital Requirements Regulation (CRR), the Group's Tier 1 common capital includes the following equity items of IFRS capital: share capital, capital reserves, statutory reserve and retained earnings, which also include the earnings from equity holdings in other subsidiaries accounted for using the equity method. Among other factors, core capital is reduced by intangible assets, goodwill and the deduction for qualifying equity holdings in accordance with Art. 89 (1) and (3) in conjunction with Art. 36 (1) k) of the Capital Requirements Regulation (CRR), whose corresponding earnings are only recognised under equity after the annual earnings have been allocated in the following year.

To determine the risk-weighted exposure values (counterparty default risk), MLP applies the credit risk standardized approach pursuant to Article 111 et seq. of the Capital Requirements Regulation (CRR). The basic indicator approach is used to determine the capital requirement for the operational risk (Article 315 et seq. of the Capital Requirements Regulation (CRR)).

Shareholders' equity (in € million) 2024 2023
Tier 1 common capital 365.6 330.4
Tier 1 additional capital – –
Tier 2 capital – –
Eligible own funds 365.6 330.4
Capital adequacy requirements for counterparty default risks 125.1 121.0
Capital adequacy requirements for operational risk 27.4 24.9
Core capital ratio (in %) 19.2 18.1
Tier 1 common capital ratio (in %) 19.2 18.1

Regulatory capital adequacy (Pillar I)

Amounts on the basis of submitted statement

From a multi-year normative risk-bearing capacity perspective, the MLP Group also meets the capital requirements under CRR for the financial years 2025 to 2028, taking into account the anticipated effects of CRR III from the financial year 2025 onwards, based on the current business and capital planning, including the adverse planning scenarios.

Opportunity report

Opportunity management

The objective of the integrated opportunity management approach employed by the MLP Group is to secure systematic and early identification of opportunities and their assessment.

This takes place as part of a standardised business strategy process, which the Executive Board conducts at least once a year. Here, the current internal and external framework conditions and influencing factors are analysed, while assumptions for the future are made. A comprehensive analysis of the current environment always forms the basis of this process. Among other things, this includes the macroeconomic and regulatory framework conditions, developments in the product area and also the competition. With regard to client and sales potential, we also use available market data alongside our own assessments. The analysis culminates in a comprehensive SWOT analysis (strengths, weaknesses, opportunities, threats).

Opportunities from changing framework conditions

The economic forecasts for the year 2025 suggest only limited opportunities for MLP. However, should the German economy display significantly better development than assumed in our forecast, this will have only an indirect influence on operational development at the company in the short term, but could generally deliver a positive effect in terms of general business development. If the capital markets continue to perform well as a result, this could once again lead to higher performance-based compensation in wealth management in the FERI segment. In addition to this, a better financial situation could lead to a greater need for insurance coverage and increased opportunities for wealth management and old-age provision among private and corporate clients. This could in turn have a positive impact on the FERI and Banking segments, as well as the Financial Consulting, DOMCURA and Industrial Broker segments.

The interest rate level stabilised at a somewhat more moderate level in the course of 2024, although it remains very high when examining the last ten years. Depending on the development of inflation and subsequent measures by the ECB, high interest income could potentially also be generated in the Banking segment in 2025 in comparison with the years of the low interest rate phase. Significantly higher interest rates triggered by the aforementioned higher market interest rates could also increase client demand in the in the Financial Consulting segment for old-age provision contracts. Developments on the capital markets also influence business development in the wealth management consulting field. Should the capital markets perform significantly better than anticipated, this could have a positive impact on assets under management and performance-based compensation in the FERI segment. Ever greater awareness of the importance of health, healthcare provision and existential risks, which MLP covers through the consulting fields of old-age provision, non-life and health insurance, could also have a positive impact on business development in the Financial Consulting, DOMCURA and Industrial Broker segments.

From the opposite perspective, if interest rates fall further in 2025, this could create additional opportunities for real estate brokerage in the Financial Consulting and Deutschland.Immobilien segments. Real estate continues to be an attractive investment, particularly within our client groups. This attractiveness could be further enhanced by lower interest rates.

The increased awareness of sustainability among the population presents opportunities through the provision of sustainable products. With our product partner selection process, which also increasingly takes sustainability criteria into account in the areas of insurance, old-age provision and wealth management, we believe we are well positioned for this. Increasing digitalisation also continues to present an opportunity for leveraging efficiency gains, both in the client business and when seeking to automate internal processes. With our commitment to elements of robotic process automation (RPA) and artificial intelligence (AI), which we have already successfully introduced in certain areas, we also believe that we are well-positioned here.

Increasing regulation of the financial services sector in Germany presents both challenges and opportunities for MLP. Stricter regulatory requirements will initially lead to additional costs and reduced productivity, as administration workloads increase and processes in the company have to be adapted. However, regulation also increases the quality requirements for market participants, which limits the competitive situation to appropriately positioned market members. At the same time, this development offers potential, as it might motivate qualified brokers from other market members to join MLP and also ZSH. In addition to this, we were quick to align our operations to the new framework conditions in recent years, which positions us well to benefit from this in the mid-term.

Corporate strategy opportunities

Alongside support for private clients, we are also focusing keenly on our business with corporate clients and institutional investors. In cooperation with our Group companies DOMCURA, RVM and FERI, as well as the TPC brand (company benefits) within MLP Finanzberatung SE, we will continue to expand our portfolio for corporate clients and institutional investors in the areas of benefits, non-life insurance, wealth management and risk management. Interlinking these areas with one another and with the private client business will furthermore enable us to create corresponding revenue potential.

MLP enjoys broad positioning in the private and corporate client business. Further exploitation of these opportunities offers potential for the next few years. In the lending business, further opportunities are opening up in the Banking and Financial Consulting segment, particularly in the client group comprising physicians. There is also potential for the coming years in the non-life business in the Financial Consulting, DOMCURA and Industrial Broker segments, in which MLP is further developing the business of its subsidiaries DOMCURA and RVM. Stronger than anticipated demand in occupational pension provision means that further increases are possible in the Financial Consulting and Industrial Broker segments.

Within the scope of opportunity management, MLP examines the market for potential acquisitions, primarily in the Industrial Broker segment. In the event of an acquisition, opportunities can arise which can increase revenue potential.

Business performance opportunities

Our client potential in MLP's private client business could increase even further over the course of the next few years. The need for well-trained employees in Germany is increasing, which in turn improves the basic conditions for our client group of academics. This results in an ongoing need for consulting services with corresponding sales opportunities in almost all segments. More pronounced penetration of our client base in the private client business is also facilitating further growth.

There is also high demand for consulting in the business with institutional and corporate clients. Particularly for institutional investors and high net-worth families whom we manage at FERI, there is a growing demand for consultancy services, especially in the field of alternative investments. In addition to this, there is still a need for consulting on how to cover operational risks and position the company as an attractive employer. This creates opportunities in occupational pension provision, as well as benefit solutions. DOMCURA is the service provider for brokers and other intermediaries in the non-life insurance business and offers them comprehensive solutions in the private sector, as well as parts of the commercial sector. RVM supports the commercial clients in this field – in some cases with a high degree of individualisation. Consulting services for company benefit solutions are covered within MLP Finanzberatung SE.

The further interlinking of these different MLP private and corporate client segments will result in considerable sales synergies that in turn can potentially deliver future sales opportunities.

We have implemented numerous measures in recent years to increase the productivity of our consultants. These include further development of our consulting applications, offering even greater support for our consultants – for example with the asset overview or digital claim submissions. In addition to this, revenue potential is generated from various measures aimed at enabling our consultants to focus even more keenly on the core of their activities, which in turn can have a positive impact on all segments. As an underwriting agency, the DOMCURA Group has also extended the added value chain of the MLP Group for standard products in the non-life insurance business field with its processes and expertise and will continue to do so in future.

The Corporate University is constantly developing and refining its training programme for independent consultants based on current requirements and regulatory developments. In 2023, a four-month trainee programme was introduced to prepare trainees for their future work as a self-employed commercial agent. Should we be more successful in acquiring new consultants than reflected in our current planning, this could result in additional potential in all segments.

Despite the situation in the real estate project business, which remains challenging, as well as our current planned and cautious approach, there is still a need for age-appropriate housing and, in view of demographic trends, even increasing demand. Accordingly, this could create opportunities for our real estate project business in the Deutschland.Immobilien segment.

Opportunities from the development of asset and risk positions

Positive business and market developments with lasting effects on earnings can be beneficial for the capital and financial position of MLP and facilitate greater scope for action in terms of business model and risk profile.

In the banking business in the Banking segment, MLP is exposed to counterparty default risks. Among other things, these are dependent on the economic situation in Germany. However, MLP's favoured clientele largely enjoys good credit ratings, which can also create opportunities for the company due to a comparatively low need for value adjustments. Further opportunities can also arise from a potential expansion of the banking business in the product and client area of the Banking segment, although this too could lead to risks. The development of interest rates also has an impact on MLP's banking book. Depending on the positioning and interest rate development, they could potentially lead to risks but also to opportunities in the Banking segment. Regardless of this, MLP runs its banking book with the objective of continuing to secure a healthy liquidity situation.

Summary of the risk and opportunity report

Risk report summary

MLP's business development is essentially influenced by financial risks, operational risks and other risks. We use our risk management system for the early identification, assessment, control, monitoring and communication of our material risks with regard to both current and future developments. The information provided ensured prompt introduction and prioritisation of risk management measures without exception.

In 2024, the MLP FHG consistently operated within its risk-bearing capacity, maintaining strong capital and liquidity positions.

Business continuity management ensures that business operations continue to run smoothly even in the event of disruptions. Our risk monitoring and control systems and the consistent alignment of our business model to our risk-bearing capacity enable us to ensure that the risks taken in our business activities are backed with adequate risk capital.

The risk management system is subject to continuous further development, in particular with regard to developing the volume and complexity of our business. The effectiveness of our risk management system and its regulatory implementation are also checked at regular intervals by both external and internal auditors.

The above-mentioned risks, and such risks which are not yet known to us or are currently considered immaterial, could have a negative impact on our forecasts detailed in the outlook.

There are currently no discernible risks that could threaten MLP's continued existence, and we do not anticipate any negative development in this respect for the coming financial year. No material risks arose after the balance sheet date that could have a significant impact on the continued existence of MLP FHG.

Opportunity report summary

MLP sees several key opportunities across multiple areas, particularly the areas of corporate strategy and business performance, as well as asset and risk position.

Prognoses

This documentation includes certain prognoses and information on future developments that are founded on the convictions of MLP SE's Executive Board, as well as on assumptions and information currently available to MLP SE. Terms such as "expect", "anticipate", "estimate", "assume", "intend", "plan", "should", "could", "might", "project" and any other phrases 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 significantly from the prognoses made in such statements.

MLP SE accepts no liability towards the general public for updating or correcting prognoses. All prognoses are subject to various risks and uncertainties, which could lead to actual results differing from expectations. The prognoses reflect the points of view at the time when they were made.

Future overall economic climate

Based on estimates provided by FERI Investment Research (FERI), the German economy is undergoing profound structural change. Among other things, this is characterised by demographic developments and the resulting enormous shortage of labour. In 2025, focus is likely to shift in particular to trade policy: In the hegemonic conflict between the US and China, the process of mutual decoupling of the economic areas is expected to continue. The conflict in the Middle East and Russia's war against Ukraine are causing further uncertainty and could have a significant negative impact on economic momentum. The geopolitical turning point we are encountering is fundamentally calling the German economic model into question. Overall, FERI therefore does not anticipate a fundamental trend reversal in 2025.

FERI expects gross domestic product (GDP) to grow slightly by +0.1% in 2025 compared to the previous year.

Despite the rather tense economic situation, the Institute for Employment Research of the German Federal Employment Agency (IAB) expects the upward trend in employment to continue, albeit at a noticeably slower pace. This is due to the fundamental robustness of labour market developments and the continued rise in workforce demand. Overall, the IAB forecasts only a slight year-on-year increase in unemployment of 60,000 to 2.84 million individuals in 2025.

In its Financial Report 2025, the German government is forecasting that gross wages and salaries in Germany will rise by 3.6% in 2025.

FERI expects the savings rate in Germany to rise slightly to 11.7% in 2025 (2024: 11.5%).

FERI expects the inflation rate to fall to an annual average of 2.3% in 2025. Based on the development of inflation and the economic trend, the central banks could potentially lower interest rates in the coming year, particularly through more aggressive cuts. FERI is anticipating interest rate cuts by the European Central Bank (ECB) and a key interest rate in the eurozone of 2.0% in December 2025. FERI estimates that the US Federal Reserve will also react and cut its key interest rate to 3.0% by December 2025.

Future industry situation and competitive environment

Wealth management

According to FERI, structurally higher inflation rates, a fundamentally changed geopolitical situation and growing levels of debt worldwide are challenges that are likely to lead to increased uncertainty and potentially shorter cycles in both the real economy and the capital markets in 2025. The experts at FERI consider a renewed rise in inflation, to which the US Federal Reserve would have to respond by resuming its monetary tightening cycle, to be a significant risk. The consequences would be a significant increase in the likelihood of a recession and presumably also a deeper economic downturn. Positive impetus could come from productivity gains as a result of digitalisation processes and increasing use of artificial intelligence applications.

According to a study conducted by EY, the upcoming inheritances of the baby boomer generation will be the largest transfer of wealth in global financial history. According to the study, some 18 trillion dollars will be inherited worldwide by 2030. As per forecasts of the Hans Böckler Foundation, the annual volume of inherited wealth in Germany, including gifts, is likely to reach up to €400 billion by 2027. The study also states that the individual inheritances to be expected are the highest in the top fifth of the income distribution.

Real estate

According to a study conducted by DZ Hyp, the real estate market continues to offer potential despite facing numerous challenges. However, the situation on the housing markets is likely to deteriorate further in the coming years. High construction and financing costs are slowing down new construction projects. The ifo institute is anticipating a drastic decline in residential construction in Germany. Based on calculations performed by the institute, only 175,000 apartments are likely to be completed in new buildings in 2025 and 2026. Yet the German government's target is 400,000 per year. At the same time, the DZ Hyp study states that demand for residential properties will continue to rise sharply over the course of the next few years: The number of private households is still increasing due to ageing, even if the overall population in Germany remains stable. The number of single-person households could therefore increase by around 1 million by the year 2040. Overall, the experts at DZ Hyp therefore expect further rent increases of around 5% in 2025.

Despite the difficult framework conditions, nursing properties remain an attractive capital investment: In its current nursing care projections, the German Federal Statistical Office expects the number of people in need of nursing care to increase by 14% by 2035 and by 37% by 2055 compared to the base year 2021. Real estate research specialist Bulwiengesa expects the number of citizens requiring inpatient nursing care to rise from around 0.8 million in 2021 to around 1.4 million in 2040.

The Growth Opportunities Act (WCG), which came into force in 2024, should also provide positive impetus for investors in the future and reinvigorate the construction and property sector in Germany. You can find details on this in the section entitled "Competition and regulation".

Loans and mortgages

Based on estimates of Deutsche Bank, interest rates for five- to ten-year mortgage loans will be at a level of 3.5% in 2025.

The current political situation, with the corresponding impact on budget management in 2025, is leading to uncertainties regarding the funding programmes of the German Development Bank (KfW).

Old-age provision

According to the rating agency Assekurata, the statutory maximum actuarial interest rate, which will rise from 0.25% to 1.00% starting from January 1, 2025 - the first increase in the maximum technical interest rate for 30 years - could provide positive impetus for the life insurance sector.

According to the German Insurance Association (GDV e.V.), this could support new business, which is why the industry association expects single premiums to increase by 4.8%.

As a result of the shortage of skilled professionals, occupational pension provision is increasingly gaining ground in Germany, even if a study conducted by Deloitte in 2024 shows that there is currently no visible impetus. Nevertheless, occupational pension schemes remain an important criterion for many Germans when deciding on a new job: 47% of respondents stated that they would consider whether a new employer offered a company-funded occupational pension scheme when changing jobs.

In summary, the German Insurance Association is forecasting growth in premium income of 1.3% to €96 billion for life insurance companies in 2025, depending on the economic and geopolitical conditions.

Health insurance

According to a study by Continentale, 82% of policy holders under statutory health insurance consider supplementary private healthcare coverage to be necessary now or in the future in order to ensure good medical care.

The experts from the estimator group expect the additional contributions to the statutory health insurance to increase by an average of 0.8 percentage points to 2.5% in 2025.

In the competition for skilled workers and long-term employee retention, employers are likely to continue relying increasingly on occupational health insurance and occupational long-term care insurance products in the future.

Non-life insurance

The German Insurance Association predicts that losses due to extreme weather events will at least double by 2050. Due to increasing climate risks, the need for residential building and household contents insurance coverage is also growing. According to the German Insurance Association, only half of all homeowners in Germany have a natural hazard insurance policy in place. According to calculations, residential building insurance premiums are likely to rise by 5% to 7% in the coming year. Over the next ten years, premiums for residential building insurance policies could double as a result of climate-related damage alone.

Assuming significant premium adjustments, ratings agency Assekurata is of the opinion that motor vehicle insurance could improve the earnings situation of the entire sector by 2026/2027. For 2025, the German Insurance Association is anticipating premium growth of between 8% and 11% for motor insurance.

According to a survey undertaken by AssCompact, commercial insurance will be of great or very great relevance to 56% of insurance brokers in the next five years. Indeed, some 70% of survey respondents expect the strongest sales revenue trend to be in cyber insurance.

Overall, the industry association is forecasting premium growth of between 4.9% and 7.2% in property and casualty insurance for 2025.

Competition and regulation

The financial services sector is expected to support and also steer the transformation of the entire economy towards sustainability. Against this backdrop, MLP's sales and consulting process is to be continuously extended to include further sustainability aspects.

The legislative process for the EU Retail Investment Strategy described in the "Industry situation and competitive environment" section will likely be finalised in 2025. A fundamental ban on commission is no longer to be expected here.

Over the next few years, the regulator will likely continue to work on making costs for clients more comparable for financial products as a whole. The aim here is to further increase client awareness of costs and the quality of consulting provided. Fee-based consulting in particular is likely to remain an important topic in the world of politics. MLP already offers fee-based consulting in areas in which we sense an interest from our clients, for example in retirement planning.

The European Union's Financial Data Access Regulation (FiDA) represents the next step from open banking towards open finance, i.e. an open and transparent data landscape in the financial sector. The aim of FiDA is to facilitate access to financial data and improve interoperability between different financial services providers in order to promote the development of data-driven financial services, as well as overall innovation and competition in the financial sector. The so-called FiDA Regulation is expected to come into force in the course of 2025. 24 months thereafter, insurers must achieve legal compliance, although membership in at least one financial data exchange system ("scheme") is already mandatory within 18 months. MLP is already working intensively on the FiDA Regulation and recognises the benefits of this regulatory step with regard to our consulting approach.

Since January 17, 2025, MLP has also had to implement the financial sector-wide DORA regulation, which aims to strengthen the European financial market against cyber risks, as well as incidents relating to information and communication technology. The DORA Regulation amended a number of other regulations relevant to MLP, the implementation of which was initiated in 2024.

Anticipated business development

Basis and assumptions

The following statements describe our expectations for the financial year 2025. The basis of comparison for the expectations described is the financial year 2024. Our expectations are based on the business strategy approved at the end of the financial year 2024, as well as the corresponding financial and KPI planning. This is based on certain assumptions: Global political and economic uncertainties are likely to persist, as is the weak German economic momentum, which would generally have a negative impact on MLP's business activities. Falling inflation rates are likely to lead to a continuation of monetary easing, which would have a negative impact on MLP's interest rate business, but at the same time be favourable for MLP's real estate and financing business. In addition, the ongoing demographic development offers great potential for MLP's old-age provision and wealth management business.

Strategic further development

We will continue to drive forward our strategic further development of the last few years in the financial year 2025. The focus is on further expanding the core business, as well as tapping further potential resulting from digitalisation.

Further expansion of our core business is planned, particularly in the wealth management and corporate client business, as well as our sustainability offerings.

In wealth management, the potential available in MLP's private client base is to be systematically developed, among other things through new banking products at the interface between wealth management and old-age provision, which is becoming increasingly important in the course of demographic developments, as well as by intensifying cooperation between MLP consultants and the experts for larger estates at our subsidiary FERI.

In the corporate client business, the existing corporate client potential in MLP's private client base is to be increasingly developed by MLP consultants acting as coordinators of the client relationship and involving the experts available in the Group companies in a targeted way.

In the area of sustainability, the range of sustainable products and the expertise of MLP consultants is to be further expanded.

Further potential from digitalisation is to be developed in the already established approach of digital platforms on the one hand and in the field of artificial intelligence on the other.

In the already established approach of digital platforms, these existing independent platforms are to be integrated more closely into the core business and therefore into client needs, while further platforms may also be integrated into the MLP Group's network on the basis of this potential.

In the area of artificial intelligence, the responsible use of AI is intended to create better client experiences and provide more support for consultants, while more efficient processes offer the potential for additional value creation.

Development of CO2 emissions per capita and proportion of women in management positions

For the future, the MLP Group is aiming to reduce its per capita CO2 emissions and increase the proportion of women in management positions.

Revenue forecast

For the financial year 2025, we anticipate a slight increase in total revenue resulting from a slight increase in sales revenue and stable other income.

Sales revenue can be broken down into the following two ways:

Broken down by our competence fields, we expect stable revenue for the Wealth competence field. We are anticipating slight rising revenue in the Life & Health competence field. We are also anticipating a slight increase in revenue in the Property & Casualty competence field. The activities not assigned to these competence fields are likely to generate significantly higher revenues.

Broken down by our revenue types, revenue from the interest rate business is likely to be slightly lower. In contrast, revenue from real estate development is likely to be significantly higher again in 2025, starting from a very low level in 2024 as a result of the temporary halt to new projects. We should therefore be able to slightly increase commission income across all consulting fields described below.

We expect stable revenues in wealth management. Very high performance-based compensation was accrued in the past financial year 2024, but this is usually only included to a small extent in our forecast for the following year. Overall, we see an increased need for professional wealth management advisory services in an environment that continues to be characterised by political and economic uncertainty. At the same time, the wealth of our clients is likely to continue to grow in the future as demographic trends progress and inheritances increase. The systematic development of the potential available in MLP's private client base should have a positive effect, as should the expansion of sustainability products and expertise.

We anticipate a significant increase in real estate brokerage revenue, following a marked recovery in this area in the past financial year 2024. The expected continued easing of monetary policy should continue to have a supportive effect here. In addition, as part of a broad-based investment strategy, we continue to see investment properties used by third parties as a good investment opportunity for our clients, sometimes also as a hedge against inflation.

In loans & mortgages, we anticipate a significant increase in revenue after the recovery in this area did not yet fully materialise in the past financial year 2024. With the continued easing of monetary policy that is expected, the desire for home ownership is likely to become more concrete again for many.

We are anticipating slight rising revenue from old-age provision. The ongoing demographic trend is likely to lead to increasing demand and therefore also demand on the part of clients. We see this trend not only in private old-age provision but also in occupational pension provision. In the case of the latter, the increasing shortage of skilled specialists should provide further positive impetus for business, as employers will increasingly offer corresponding benefits. The increasing development of the existing corporate client potential in MLP's private client base should have a supporting effect here. At the same time, however, clients in the occupational pension provision sector are currently experiencing uncertainty in view of the political and economic environment.

We expect stable revenues in health insurance. We are observing a sustained high level of interest in healthcare provision, particularly in the private health insurance sector. The occupational health insurance sector should also continue to benefit from the increasing shortage of skilled specialists, as well as companies' efforts to attract and retain talented employees. The increasing development of the existing corporate client potential in MLP's private client base should also have a further supporting effect here. However, clients are also currently experiencing uncertainty when it comes to occupational health insurance as a result of the political and economic environment.

We are anticipating slight rising revenue in non-life insurance. The easing inflationary pressure, and therefore also the pressure to adjust premiums, should be more than compensated for by the increasing development of existing client potential.

Assessment of revenue performance in 2025 (compared to the previous year)

2025
Sales revenue Slightly rising
Interest income Slightly decreasing
Revenue from real estate development Significantly rising
Commission income Slightly rising
Revenue from wealth management Unchanged
Revenue from real estate brokerage Significantly rising
Revenue from loans and mortgages Significantly rising
Revenue from old-age provision Slightly rising
Revenue from health insurance Unchanged
Revenue from non-life insurance Slightly increasing

Expenditure forecast

Developments in terms of expenses for services received generally correspond to the developments in the respective revenues. In the coming year, however, we are already anticipating significantly lower expenses from the interest rate business, while, in line with the revenue forecasts, we expect real estate development expenses to be significantly higher than in the previous year and commission expenses to be slightly higher than in the previous year.

At the same time, we expect to continue our investments in the future, while keeping administration costs stable thanks to our cost focus, which is supported by efficiency gains, partly through the use of digitalisation.

Earnings forecast

For the financial year 2025, we expect the market environment to continue to be characterised by political and economic uncertainties. This environment presents both opportunities and risks for our business development, which is why the forecasts include a degree of uncertainty. Based on our expectations for revenue and costs, we expect EBIT in a corridor between €100 million and €110 million for the financial year 2025.

Earnings planning

We are planning a significant increase in EBIT with a view to the financial year 2028. Here we want to benefit from the further expansion of our core business and from the further development of potential from digitalisation.

Proposed dividend

MLP's objective is to enable our shareholders to participate fairly in the company's success, as well as to pay an attractive and reliable dividend corresponding to our dividend policy. The company's financial and earnings position, as well as its future liquidity requirements, are determining factors for our dividend policy here. At the same time, we will retain a portion of the profit in order to further strengthen the business model and continue to comfortably comply with the increasing banking regulatory requirements.

On this basis, the Executive Board and Supervisory Board will propose a dividend of €0.36 per share to the Annual General Meeting scheduled for June 25, 2025. The payout ratio is therefore around 57% of net profit.

Forecast summary

The overall economic environment is expected to pose ongoing challenges throughout the financial year 2025, with industry-specific factors and competitive dynamics expected to also impact MLP's business activities. Regulatory developments are also likely to remain challenging, although MLP still considers itself to be very well-positioned here.

In MLP's view, the net assets, financial position and results of operations of the MLP Group were always solid in the last financial year. We also expect this to continue in the financial year 2025. The MLP Group held sufficient shareholders' equity and cash holdings as of the balance sheet date. Overall, our business model is not very capital intensive and generates high cash flows. From today's perspective, sufficient internal financing capacity is therefore in place for the forecast period. However, we can also supplement this by borrowing adequate funds should suitable opportunities present themselves. We will use our cash flow to allow shareholders to participate in the company's success, to strengthen the Group's financial power and for investments. With regard to the results of operations, we are anticipating a significantly positive Group profit in the forecast period. In concrete terms, we expect a slight increase in total revenue, consisting of sales revenue and other income, in the 2025 financial year. As the largest part of this, we expect sales revenue increase slightly and EBIT to be in a corridor between €100 million and 110 million. However, in the mid-term – up to the end of 2028 – we are planning a significant increase in EBIT.

In addition to this, the MLP Group is aiming to reduce its per capita CO2 emissions and increase the proportion of women in management positions.

In contrast to the consolidated financial statements, the financial statements of MLP SE are not prepared in accordance with International Financial Reporting Standards (IFRS), but rather to the rules of the German Commercial Code (HGB).

Principles of MLP SE

Business model and management system at MLP SE

MLP SE is the holding company for the MLP Group. The subject of the company is the management of the corporate group. It defines strategic goals and ensures a coordinated and aligned corporate policy within the Group. As the holding, MLP SE does not have any operating activities of its own. Any sales revenue generated at MLP SE is essentially a result of letting buildings to affiliated companies and intra-Group services. In addition, investment income and income from profit transfers, as well as expenses from loss transfers, are generated from the existing shares in affiliated companies. Sales revenue and EBT represent the relevant performance indicators for the company.

Corporate structure of MLP SE

Six key subsidiaries are arranged under MLP SE: The brokerage business is part of MLP Finanzberatung SE. In this segment, MLP Finanzberatung SE is the Group's consulting company for private and corporate clients and is registered as an insurance broker. Both the expertise and the portfolio in the real estate sector were significantly expanded after MLP Finanzberatung SE acquired DI Deutschland.Immobilien AG. Deutschland.Immobilien is an independent real estate platform for all real estate classes. MLP Banking AG is supervised by the Federal Financial Supervisory Authority (BaFin). It offers banking services to both private and business clients – from accounts and cards, through loans and mortgages, to wealth management. As a multi asset investment firm for institutional investors, high net-worth families and foundations, the FERI Group (FERI) offers services in the main business fields of investment management, investment consulting and investment research. As an underwriting agency, DOMCURA designs, develops and implements extensive coverage concepts for private and corporate clients in the non-life insurance field. With the acquisition of the RVM Group in the financial year 2021, MLP laid the crucial foundations for developing the commercial and industrial insurance market segment. As an industrial insurance broker, RVM has a proven business model that focuses on small and medium-sized companies. More information on the corporate structure can be found in the chapter entitled "Fundamental principles of the Group".

Research and development at MLP SE

In its role as the holding company, MLP SE is not actively involved in operations. As a holding company, MLP SE does not engage in any research or development in the classic sense.

Economic report of MLP SE

Environment of MLP SE

The environment at MLP SE, which acts as the holding company of the MLP Group with all its subordinate Group units, essentially corresponds to the environment of the MLP Group. The economic framework conditions, the sector situation and the competitive environment of the MLP Group are described in detail in the chapters entitled "Overall economic climate" and "Industry situation and competitive environment".

Business performance of MLP SE

The business performance at MLP SE, which acts as the holding company of the MLP Group with all its subordinate Group companies, is essentially characterised by the economic development of its investments due to the existing profit and loss transfer agreements and income from investments. The business performance of the MLP Group is explained in the chapter entitled "Business performance".

Results of operations of MLP SE

At €12.4 million (€9.7 million), sales revenue was significantly above the previous year's level. Revenue essentially comprises rental income from affiliated companies and intra-Group services. Revenue from internal Group services was higher as a result of the reorganisation of internal divisions. At €7.5 million (€6.4 million), other revenue was also significantly above the previous year's level.

Personnel expenses rose to €13.7 million in the last financial year (€11.0 million). This is due to restructuring measures, including the transfer of employees from other Group companies to MLP SE. At €3.2 million (€3.0 million), amortisation expenses were above the level recorded in the previous year. Other operating expenses increased to €20.9 million (€16.3 million). This figure essentially comprises expenses resulting from Group allocations, consulting expenses, and costs of administrative operations. As a result, earnings before interest and taxes decreased to -€17.9 million (-€14.1 million).

Business developments at its subsidiaries has a significant impact on the results of operations of MLP SE. Profit/loss transfer agreements are in place with MLP Banking AG, FERI AG and DOMCURA AG. These are reflected in the financial result.

At €56.3 million (€68.9 million), the financial result in the reporting year was down on the previous year. Income from profit and loss transfer agreements was €53.3 million (€64.1 million) in the reporting year. This decline is primarily due to the lower earnings at MLP Banking AG.

As a result, earnings before taxes (EBT) fell significantly to €38.4 million (€54.8 million). Following deduction of income taxes of €16.8 million (€9.6 million), this resulted in net profit of €21.4 million (€45.0 million). Net accumulated profit of €39.4 million (€45.1 million) was recorded in the reporting year.

Financial position of MLP SE

As of December 31, 2024, MLP SE had cash holdings (cash on hand and on deposit with the Deutsche Bundesbank, bank deposits and cheques) of €1.6 million (€14.7 million). This decline can essentially be attributed to the distribution of the dividend payout for the financial year 2023 to our shareholders in the amount of €0.30 per share with a total volume of €32.8 million., as well as an increase in capital stock performed at FERI AG. This was offset, among other things, by a larger repayment from a maturing investment.

At 90.1% (92.1%), the equity ratio remained at the previous year's level. MLP SE therefore continues to enjoy a very good equity capital adequacy.

MLP SE's liabilities increased to €17.2 million (€3.4 million), mainly due to the increase in liabilities due to banks as a result of loans taken out for the construction of the new administrative building of the subsidiary RVM GmbH in Reutlingen.

The dividend payments of MLP SE are made in accordance with the financial and earnings situation, as well as future liquidity requirements of the company. At 74%, the payout ratio for the financial year 2023 was above the targeted corridor of 50% to 70% of the MLP Group's net profit. For the financial year 2024, the Executive Board and Supervisory Board will propose a dividend of €0.36 per share at the Annual General Meeting on June 25, 2025. This corresponds to a payout ratio of around 57% of the Group's net profit.

Net assets of MLP SE

As of the balance sheet date on December 31, 2024, the balance sheet total of MLP SE was €436.0 million (€438.6 million).

On the assets side of the balance sheet, property, plant and equipment increased to €52.4 million (37.7 million). Other fixtures, fittings and office equipment increased to €10.4 million here (€4.1 million) due to major capitalisations in the area of equipment for the MLP SE administration building in Wiesloch. The item "Payments on account and assets under construction" that this also includes increased to €14.4 million (€3.5 million) due to the construction of the new administration building of the subsidiary RVM GmbH in Reutlingen and the renovation of the administration building of the subsidiary DOMCURA AG in Kiel. Financial assets increased to €259.8 million (€242.3 million). Shares in affiliated companies increased to €249.8 million (€232.3 million) as a result of the increase in capital stock performed at FERI AG here. Receivables and other assets declined to €121.9 million (€143.6 million). This is essentially due to the reduction in receivables from affiliated companies to €120.1 million (€142.5 million). This primarily relates to lower receivables from those subsidiaries of MLP SE with profit and loss transfer agreements and lower receivables from a loan granted to DI Deutschland.Immobilien AG. Other assets were €1.8 million (€1.2 million). At €1.6 million (€14.7 million), cash and cash equivalents (cash on hand and on deposit with the Deutsche Bundesbank, bank deposits and cheques) were below the previous year's figure due to the dividend payout and the increase in capital stock performed at FERI AG.

On the liabilities side of the balance sheet, shareholders' equity declined to €392.7 million (€404.1 million). The share capital and capital reserves remained unaltered at €109.3 million (€109.3 million) and €139.1 million (€139.1 million) respectively here. Retained earnings decreased to €105.0 million (€110.6 million) due to withdrawals from other retained earnings exceeding the allocations from the 2023 unappropriated profit to retained earnings in favour of the 2024 unappropriated profit by €5.6 million. Transfer of a large portion of the undistributed net profit as of December 31, 2023 to retained earnings. Net accumulated profit declined to €39.4 million (€45.1 million) due to the lower net profit for the financial year 2024. At €26.1 million (€31.1 million), provisions were below the previous year. Provisions for pensions and similar obligations amounted to €14.9 million (€16.2 million), while tax provisions declined €2.2 million (€7.5 million and other provisions increased to €8.9 million (€7.4 million). Liabilities increased to €17.2 million (€3.4 million). Liabilities due to banks increased to €12.0 million (€0.0 million) due to borrowing for the construction of the new administration building of the subsidiary RVM GmbH in Reutlingen. The trade payables also included in this figure rose to €3.4 million (€1.9 million).

Comparison of actual and forecast business performance of MLP SE

The business performance of MLP SE developed as follows in the past financial year compared to our expectations at the beginning of the financial year 2024:

We were anticipating a significant increase in revenue development for the financial year 2024 over the previous year. Ultimately, we were able to significantly increase revenue and therefore hit our forecast.

We were anticipating EBT for the 2024 financial year to remain at the previous year's level. However, EBT was significantly below the previous year and therefore below our forecast.

Employees of MLP SE

In the financial year 2024, MLP SE employed an average of 93 employees (64). This change can primarily be attributed to restructuring measures, as well as the transfer of employees from other group companies to MLP SE.

Stipulations for promoting equal participation of women in management positions pursuant to § 76 (4) and § 111 (5) of the German Stock Corporation Act (AktG) apply equally to MLP SE and the MLP Group. We therefore make reference to stipulations of the MLP Group for promoting equal participation of women in management positions pursuant to § 76 (4) and § 111 (5) of the German Stock Corporation Act (AktG) in this regard. Details can be found in the corporate governance statement of the MLP Group in the section entitled "Corporate governance statement pursuant to § 315d and § 289f of the German Commercial Code (HGB)".

Risk and opportunity report of MLP SE

The risks and opportunities of MLP SE from its subordinate group companies, which are attributed to it as the holding company through its corporate investments, are essentially the same as the opportunities and risks of the MLP Group. Please therefore refer to the section entitled "Risk and opportunity report".

As the approved financial holding company, MLP SE is the superordinated undertaking of the MLP Financial Holding Group and is responsible for risk management at Group level. MLP SE is also the ultimate parent company in the MLP Group. You can find further information on this in the section entitled "Risk report".

The description of the internal monitoring and risk management system with regard to the accounting process of MLP SE is also the same as that of the MLP Group. We therefore also make reference to the chapter "Risk report".

For further information on financial instruments and their use, please also refer to the "Risk report" and the "Notes to the consolidated financial statements" sections.

Forecast for MLP SE

The development of MLP SE in its role as the holding company is largely dependent on the development and profit/loss transfer of its investments. Set against this background, we refer to the section entitled "Forecast".

For the financial year 2025, we expect sales revenue to remain at the previous year's level. However, we expect EBT to improve significantly over the previous year.

Declaration of Corporate Governance of MLP SE pursuant to §§ 289f, 315d of the German Commercial Code (HGB)

The Declaration of Corporate Governance applies equally to MLP SE and the MLP Group. We therefore make reference to the chapter "Declaration of Corporate Governance pursuant to §§ 289f, 315d of the German Commercial Code (HGB).

Explanatory report on the disclosures of MLP SE pursuant to § 289a (1) and § 315a (1) of the German Commercial Code (HGB)

The explanatory report on acquisition-relevant disclosures applies equally to MLP SE and the MLP Group. In this regard, reference is made to the chapter "Explanatory report on the disclosures pursuant to § 176 (1) of the German Stock Corporation Act (AktG), § 315a (1), § 289a (1) of the German Commercial Code (HGB)".

Compensation report of MLP SE

The principles governing the structure and organisation of the pay system in place at MLP SE correspond to those of the MLP Group.

The compensation report for the last financial year and the auditor's report pursuant to § 162 of the German Stock Corporation Act (AktG) are made publicly available at https://mlpse.com/investors/corporate-governance/compensation-report-and-the-auditors-report/.

The pay system in place pursuant to § 87a (1) and (2) sentence 1 of the German Stock Corporation Act (AktG) and the most recent pay resolution pursuant to § 113 (3) of the German Stock Corporation Act (AktG) are made publicly available at https://mlp-se.com/investors/corporate-governance/compensationsystem-for-the-executive-board-and-supervisory-board/.

NON-FINANCIAL REPORT OF BUSINESS ACTIVITIES

MLP is structured as a holding in which central control tasks are performed by the Group's parent company, MLP SE. As per the requirements of § 289b et seq. and § 315b of the German Commercial Code (HGB), MLP SE submits a separately drafted non-financial report as the parent company of the MLP Group.

Within the scope of the 2024 Sustainability Report, MLP reports on the non-financial aspects of its business activities. The Sustainability Report is published on the website at: https://mlpse.com/sustainability/.

DECLARATION OF CORPORATE GOVERNANCE PURSUANT TO §§ 315D, 289F OF THE GERMAN COMMERCIAL CODE (HGB)

Pursuant to §§ 315d, 289f of the German Commercial Code (HGB), the Executive Board and Supervisory Board submit the Declaration of Corporate Governance for both MLP SE and the Group.

Wording of the Declaration of Compliance of MLP SE pursuant to § 161 of the German Stock Corporation Act (AktG) (status: November 13, 2024)

"Pursuant to § 161 of the German Stock Corporation Act (AktG), the Executive Board and Supervisory Board of MLP SE hereby declare that the Company has generally complied with the recommendations of the Government Commission for the German Corporate Governance Code in the version dated April 28, 2022 (hereinafter also referred to as the "GCGC 2022").

With regard to the recommendations of the "German Corporate Governance Code" Government Commission in the version dated April 28, 2022, only recommendations B.1, B.5, C.2 und G.10 have not been complied with.

The reasons for these deviations from the recommendations are as follows:

Recommendation B.1 of the GCGC 2022 (diversity in the composition of the Executive Board) As per the recommendations of the GCGC 2022, the Supervisory Board should pay attention to diversity in terms of the composition of the Executive Board.

The Supervisory Board of MLP SE strives to further intensify its future efforts with respect to diversity and, in particular, an appropriate consideration of women when appointing members of the Executive Board. The Supervisory Board gives specific consideration to applications from suitable female candidates in its selection procedures. The Supervisory Board reviewed this aspect for the first time in the financial year 2014, and will undertake further measures in order to build on the Group-wide overall concept already passed by the Executive Board for the implementation of the respective GCGC 2017 recommendation (considering diversity when making appointments to executive positions) and also achieve an appropriate consideration of women within the Executive Board of the Company, taking into account the Company's specific situation. In 2020, the Supervisory Board confirmed the target of at least 25% for the proportion of women on the Executive Board – which currently only comprises three persons – and set itself the end of the financial year 2025 as the implementation deadline. During its meeting on August 13, 2024, the Supervisory Board resolved that it intends to appoint Ms Angelika Zinkgräf as a member of the Executive Board at MLP SE with effect from December 1, 2025.

The Supervisory Board is of the opinion that the state of implementation achieved to date is not yet sufficient to meet the requirements set out in recommendation B.1 of the GCGC 2022. For this reason, MLP declares that it will deviate from this recommendation in the financial year 2024 but will then comply with this recommendation in the financial year 2025.

Recommendation B.5 of the GCGC 2022 (age limit for members of the Executive Board and disclosure in the declaration on corporate governance)

As per the recommendations of the GCGC 2022, an age limit is to be specified for members of the Executive Board and disclosed in the declaration on corporate governance.

No age limit has been set for members of the Executive Board. The appointment of members of the Executive Board should be based solely on their knowledge, skills and specialist experience. MLP did not follow this recommendation in the financial year 2024 and will also not follow it in the financial year 2025.

Recommendation C.2 of the GCGC 2022 (age limit for members of the Supervisory Board and disclosure in the declaration on corporate governance)

As per the recommendations of the GCGC 2022, an age limit is to be specified for members of the Supervisory Board and disclosed in the declaration on corporate governance.

No age limit has been or is set for members of the Supervisory Board at MLP. The election of members of the Supervisory Board should be based solely on their knowledge, skills and specialist experience. MLP did not follow this recommendation in the financial year 2024 and will also not follow it in the financial year 2025.

Recommendation G.10 GCGC 2022 (share-based payment; disposal of the long-term variable amount awarded)

Based on recommendation G.10 sentence 1 of the GCGC 2022, the long-term variable compensation elements granted to a member of the Executive Board should predominantly be invested in shares in the Company by said member or granted accordingly on the basis of shares. In addition to this, a member of the Executive Board should only be able to access the long-term variable compensation elements after four years.

MLP does not compensate the members of its Executive Board on the basis of shares. Stipulations applying to the members of the Executive Board regarding what specific form variable compensation is to take after being granted are not deemed necessary. As a general rule, each individual member of the Executive Board can determine this independently. However, any member of the Executive Board is obviously free to invest any compensation received in MLP shares.

Payment of the long-term variable compensation components granted takes place three years and four months after the end of the financial year for which said compensation components were granted. The members of the Executive Board can therefore receive these before four full years have passed. MLP considers this qualifying period of three years and four months to be adequate.

From MLP's perspective, the payment modalities for Executive Board compensation have proven effective, so there is no reason to change the current approach.

MLP therefore declares that it is deviating from these recommendations in the financial year 2024 and also in the financial year 2025. As such, it will not introduce any share-based variable compensation or make any stipulations regarding use of the variable compensation granted to members of the Executive Board. The same applies to an extension of the qualifying period for payment of the long-term variable compensation components granted.

Wiesloch, November 2024

MLP SE

The Executive Board The Supervisory Board"

In November 2024, the Executive and Supervisory Boards issued the above Declaration of Compliance pursuant to § 161 of the German Stock Corporation Act (AktG) and made it permanently available to shareholders via the company's website. You can also view the wording of the Declaration of Compliance dated November 13, 2024 at https://mlp-se.com/investors/corporate-governance/declaration-ofcompliance/.

The compensation report, auditor's report, compensation system and compensation resolution

The compensation report for the last financial year and the auditor's report pursuant to § 162 of the German Stock Corporation Act (AktG) are made publicly available at https://mlpse.com/investors/corporate-governance/compensation-report-and-the-auditors-report/.

The pay system in place pursuant to § 87a (1) and (2) sentence 1 of the German Stock Corporation Act (AktG) and the most recent pay resolution pursuant to § 113 (3) of the German Stock Corporation Act (AktG) are made publicly available at https://mlp-se.com/investors/corporate-governance/compensationsystem-for-the-executive-board-and-supervisory-board/.

Further disclosure requirements

Responsible and value adding management

By complying with the stipulations of the German Corporate Governance Code (GCGC) in the version of April 28, 2022 (GCGC 2022), MLP SE continues to reinforce the confidence of its shareholders, clients, employees and other stakeholders in the management of the company. Responsible management geared toward long-term added value is a high priority for us. The Executive and Supervisory Boards ensure that MLP continues to review and develop corporate governance across the Group.

Management and control structure

MLP SE is a European stock corporation that is based in Germany and subject to the European SE provisions, the German SE Implementation Act (SEAG) and German stock corporation law. As an SE, the company has a dual management and control structure, comprising an Executive Board and a Supervisory Board. The third corporate body is the Annual General Meeting.

Executive Board

As the governing body of a stock corporation, the Executive Board manages the business and is bound by the provisions of corporate law to act in the interest of the company and in accordance with its business policies. The responsibilities and duties of the Executive Board are laid down in the German Stock Corporation Act (AktG), in MLP SE's Articles of Association, as well as in a set of rules of procedures and the schedule of responsibilities of the Executive Board attached to it.

The members of the Executive Board hold joint responsibility for all management of the business. Decisions by the Executive Board are generally reached during Executive Board meetings, which are held at regular intervals. Resolutions are drafted as ordinary resolutions with majority votes and recorded accordingly.

Composition of the Executive Board

According to MLP SE's Articles of Association, the Executive Board at MLP SE comprises at least two members. The Supervisory Board decides on the number of Executive Board members, their appointment and the revocation of their appointment as well as the conclusion, amendment and termination of the employment contracts with Executive Board members. The members of the Executive Board are Dr Uwe Schroeder-Wildberg (CEO and Chairman of the Board), Manfred Bauer and Reinhard Loose.

As per the recommendations of the GCGC 2022, an age limit is to be specified for members of the Executive Board and disclosed in the declaration on corporate governance. No age limit has been set for members of the Executive Board. The appointment of members of the Executive Board should be based solely on their knowledge, skills and specialist experience.

As per Recommendation B.2 of the GCGC 2022, the Supervisory Board should work together with the Executive Board to secure long-term succession planning. As the financial holding company, § 25d (11) of the German Banking Act (KWG) already stipulates that the Supervisory Board at MLP SE must adhere to institutionalised principles when identifying applicants to fill a management position and when preparing election nominations, as well as when checking the basic principles employed by management for selection and appointment of the persons at the upper management level. The Supervisory Board has approved a requirements profile for members of the Executive Board at MLP SE, which addresses the professional and personal aptitude of potential candidates. The requirements profile for the composition of the Executive Board as decided by the Supervisory Board enables the Supervisory Board to conduct an orderly selection process, applying objective and comprehensible requirement criteria to the proposals for the appointment of new members of the Executive Board at MLP SE. Accordingly, each member of the Executive Board must display a certain level of indispensable general knowledge and experience. Only those candidates are to be proposed whose personal integrity, independence, commitment, motivation and personality indicates that they are capable of properly performing the duties of a member of the Executive Board at MLP SE, as well as the Financial Holding Group managed by it and its subordinate companies. The Executive Board should be composed in such a way that qualified management of MLP SE is assured at all times. Its members should together possess the knowledge, skills and specialist experience required to perform their respective legal duties properly. Members of the Executive Board must be reliable. As well as meeting the general requirements in terms of personal reliability, personal independence and freedom from conflicts of interest, each member of the Executive Board should also possess the kind of general professional expertise needed in order to execute the respective management role properly. This means that the candidates must possess sufficient theoretical and practical knowledge of the respective business, as well as specific management experience. Alongside this, the Supervisory Board of MLP SE has already been including the topic of long-term succession planning in the agenda of its meetings at least once every year for quite some time. This focuses on discussion of both conceptual issues associated with succession planning and specific potential candidates. In accordance with above requirement profile, the Supervisory Board regularly reviews whether a defined group of persons possesses adequate theoretical knowledge and practical experience including managing a financial holding or whether targeted development of a group of individual candidates can be achieved through a development programme within the company to acquire the necessary theoretical and practical experience in the form of individual measures.

Supervisory Board

The Supervisory Board advises and monitors the Executive Board. The responsibilities and duties of the Supervisory Board are derived from the German Stock Corporation Act (AktG), MLP SE's Articles of Association and a set of rules of procedures for the Supervisory Board.

Resolutions of the Supervisory Board are made in meetings with the necessary majorities, which are convened by the Supervisory Board or on behalf of the Chairwoman of the Supervisory Board. The Supervisory Board is also provided with information outside of its regular meetings in the case of particularly important or urgent projects. Insofar as necessary, resolutions may also take the form of circular resolutions or be passed remotely. A transcript of each meeting is drafted.

Supervisory Board composition

MLP SE's Articles of Association provide for a Supervisory Board that comprises six members, two of whom are employee representatives. Both the size and the tripartite composition of the Supervisory Board are thereby stipulated in MLP SE's Articles of Association. The members of the Supervisory Board at a dualistically structured SE are generally appointed by the Annual General Meeting (Art. 40 (2) of the SE Regulation). MLP SE deviates from this with regard to the employee representatives. The appointment of the employee representatives to the Supervisory Board is based on a participation agreement concluded between the company and a negotiation committee established for this purpose. Accordingly, employee representatives are elected directly through an election in the company. The members of the Supervisory Board are currently: Ms Sarah Rössler (Chairwoman of the Supervisory Board), Dr Andreas Freiling (Vice Chairman of the Supervisory Board), as well as Ms Ursula Blümer, Mr Bernd Groß, Mr Matthias Lautenschläger and Ms Monika Stumpf. Ms Sarah Rössler has held a seat on the Supervisory Board since the financial year 2022, while Dr Andreas Freiling, Ms Ursula Blümer and Mr Bernd Groß have been members since the financial year 2023, Mr Matthias Lautenschläger since the financial year 2018 and Ms Monika Stumpf since 2021.

As per the recommendations of the GCGC 2022, the Supervisory Board should specify specific targets for its composition and draw up a skills profile for the entire Board. In doing so, the Supervisory Board should also pay attention to diversity. Proposals submitted to the Annual General Meeting by the Supervisory Board should take into account these targets and, at the same time, aim to meet the skills profile for the entire Board. In line with Recommendation C 15 of the GCGC, the status of implementation should be disclosed in the form of a qualification matrix in the Declaration of Corporate Governance. This should also provide information regarding the appropriate number of independent shareholder representatives on the Supervisory Board, as determined by the shareholder representatives, along with the names of these members.

In its meetings during past financial years, the Supervisory Board at MLP SE addressed the topic of setting specific targets for the composition of the Supervisory Board, paying particular attention to its own target of securing diversity in terms of its composition, as the Supervisory Board has set itself specific targets for its composition. In particular, a requirements profile for Supervisory Board candidates which defines the knowledge, skills, professional experience and personal aptitude characteristics that candidates must possess in order to be considered for this role, has already been adopted in the past. The requirements profile applicable to the composition of the Supervisory Board and the proposals made to the Annual General Meeting for the composition of the Supervisory Board enable the Supervisory Board to conduct an orderly selection process, applying objective and comprehensible requirement criteria to the proposals for the appointment of new members of the Supervisory Board at MLP SE. Accordingly, each member of the Supervisory Board must possess a certain level of indispensable general knowledge and experience. Only those candidates whose personal integrity, independence, commitment, motivation and personality indicates that they are capable of properly performing the duties of a member of the Supervisory Board at MLP SE, as well as the Financial Holding Group managed by it and its subordinate companies, are to be proposed. The composition of the Supervisory Board must ensure qualified advising and monitoring of the Executive Board at MLP SE by the Supervisory Board at all times. Its members should together possess the knowledge, skills and specialist experience required to perform the respective legal duties properly. As well as meeting the general requirements in terms of personal reliability, personal independence and freedom from conflicts of interest, each member of the Supervisory Board should also possess the requisite professional expertise: All members should be capable of both understanding and evaluating the reports presented to the Supervisory Board, as well as drawing their own conclusions regarding the content. Alongside this, they should also display a general understanding of the brokerage, insurance, wealth management and banking business, as well as the real estate agent and real estate project development business and in particular the market environment, the individual business fields, the client requirements and the regions in which MLP SE and its subsidiaries are active and the strategic alignment of both MLP SE and the Group. From the perspective of the Supervisory Board, the ability to judge the correctness, efficiency, legality and expediency of the business decisions to be assessed also represents an absolute qualification requirement for members of the Supervisory Board. Alongside this, candidates should also be capable of understanding and evaluating the annual financial statements and associated documents. The member to be proposed should possess commercial experience gained from having worked in corporate management or as a senior executive and/or member of a Supervisory Board or comparable corporate body.

This requirements profile was revised in 2022 after MLP SE was granted authorisation to operate as a financial holding company and following the Supervisory Board elections held in 2023. The Supervisory Board also underwent a self-evaluation in 2024. You can find statements on the stipulations for promoting equal participation of women in management positions pursuant to § 76 (4) of the German Stock Corporation Act (AktG) within this Declaration of Corporate Governance.

The implementation status of the specific targets, the skills profile and independence can be seen in the following qualification matrix, which the Supervisory Board also reviewed in the past financial year during a meeting of the Nomination Committee and the Supervisory Board.

Sarah
Rössler		 Dr Andreas
Freiling		 Ursula
Blümer		 Bernd
Groß		 Matthias
Lautenschläger		 Monika
Stumpf
Duration of
membership		 Member since 2022 2023 2023 2023 2018 2021
Diversity Born 1970 1963 1971 1968 1980 1964
Gender F M F M M F
Personal suitability Independence 1 x x Employee x Employee
No overboarding 2 x x x x x x
Professional
suitability		 Business field / sector
familiarity 3		 x x x x x x
Accounting
- Financial expert of the
Audit Committee 4		 x x
- Expertise in auditing 3 x x
- Expertise in accounting 3 x x x x
Leadership experience x x x x x x
Risk Management x x x x x x
Regulatory
environment/compliance		 x x x x x
IT/Digitalisation x x
Sustainability x x x x x x

Qualification matrix for members of the Supervisory Board pursuant to the German Corporate Governance Code

1 In the sense of the German Corporate Governance Code, as well as the recommendation of the European Commission regarding the duties of the non-executive directors/members of the Supervisory Board, as well as the Committees of the Administrative/Supervisory Board dated February 15, 2005.

2 Some of the members of the Supervisory Board exercise a permitted number of mandates at various companies outside MLP SE. For MLP SE, the determination of whether overboarding exists is primarily based on the legal provisions of § 25d (3) of the German Banking Act (KWG).

3 § 100 (5) of the German Stock Corporation Act (AktG)

4 § 25d (9) of the German Banking Act (KWG) "Expertise in accounting and auditing"

From the Supervisory Board's perspective, the current composition of the Supervisory Board corresponds both to the defined objectives and the skills profile. The members of the Supervisory Board at MLP SE are selected on the basis of their professional qualifications, knowledge and special experience. The aforementioned self-evaluation and the recurring review and adjustment of the qualification matrix ensure that the Supervisory Board itself can determine whether the requisite expertise is still available to a sufficient extent. Based on their own assessment, the members of the Supervisory Board are therefore familiar with the sector in which MLP SE operates and have the required expertise and specialist knowledge.

The Supervisory Board also reviewed the knowledge and experience required of the Supervisory Board members and of the Chairman of the Risk and Audit Committee under the German Corporate Governance Code with regard to reporting and internal control procedures. The Chairman of the Risk and Audit Committee at MLP SE fully complies with these requirements.

Assessment of the Executive Board and Supervisory Board

Pursuant to § 25d (11) of the German Banking Act (KWG), the Supervisory Board is obligated – supported by the Nomination Committee – to perform a regular assessment, at least once a year, of the structure, size, composition and performance of the Executive Board and the Supervisory Board, as well as the knowledge, skills and experience of each individual member of the Executive Board and Supervisory Board. In the last financial year, the Nomination Committee and the Supervisory Board held multiple meetings to complete the legally mandated assessment of the Executive Board and the Supervisory Board pursuant to § 25d of the German Banking Act (KWG), which is to be performed at least once a year and which also represents the self-assessment of the Supervisory Board pursuant to Recommendation D.12 of the GCGC. To this end, the format, specific execution and timetable were all discussed and established in the meetings of the Nomination Committee. A decision was taken not to bring in an external consultant. The assessment was essentially performed on the basis of detailed questionnaires regarding the work performed by the Supervisory Board, the Committees of the Supervisory Board and also the Executive Board, as well as personal interviews conducted by members of the Nomination Committee with members of the Executive Board. Additionally, individual evaluations of the members of both bodies were conducted.

Independence of the Supervisory Board

The stipulations relating to the composition of the Supervisory Board and the requirements profile for members of the Supervisory Board at MLP SE were amended in 2022. In 2022, the shareholder representatives on the Supervisory Board stipulated that three of the four members of the Supervisory Board elected by the shareholders should be independent of the company and its Executive Board. This amendment was undertaken particularly in light of the upcoming election of new Supervisory Board members at the Annual General Meeting in 2023. With the election of the new members of the Supervisory Board by the Annual General Meeting on June 29, 2023, MLP therefore complies with the above recommendations and will continue to do so in the future.

Age limit

As per the recommendations of the GCGC 2022, an age limit is to be specified for members of the Supervisory Board and disclosed in the declaration on corporate governance. No age limit is set for members of the Supervisory Board at MLP. In the Supervisory Board's opinion, the election of members of the Supervisory Board should be based solely on knowledge, skills and specialist experience.

Efficiency of the Supervisory Board

In 2024 the Supervisory Board also reviewed the efficiency of its own activities. Particular attention was paid to the efficiency of the procedures in the Supervisory Board, the information flow between the committees and the Supervisory Board and the timeliness and sufficient content of reporting by the Executive Board to the Supervisory Board. To this end, a self-evaluation form containing specific questions is completed and evaluated once a year by all members of the Supervisory Board. On this basis, the Supervisory Board then undertakes intensive and expedient discussion with the aim of developing measures aimed at further increasing efficiency.

Supervisory Board committees

The Supervisory Board of MLP SE has set up committees in order to improve the effectiveness of its work.

After MLP SE was granted a licence to operate as a financial holding company by the German Federal Financial Supervisory Authority (BaFin) in 2022, the Supervisory Board aligned its structure and activities to the relevant requirements. To this end, the Supervisory Board therefore established a joint Risk and Audit Committee, as well as a Nomination Committee and a Compensation Oversight Committee in November 2022 as per the mandatory requirements of § 25d (7) et seq. of the German Banking Act (KWG). These have now also taken over the duties of the Audit Committee, the Personnel Committee and the Nomination Committee.

The committees have, among others, the following non-exhaustive tasks:

The newly established Nomination Committee focuses on preliminary deliberations regarding personnel matters of the members of the Executive Board, definition of targets and a strategy to ensure better representation of the underrepresented gender on the Supervisory Board. It is also involved in drafting guidelines/processes for assessing the individual and overall aptitude of the members of the Executive Board and Supervisory Board, as well as in the regular (at least once a year) assessment of the structure, size, composition, performance, knowledge, skills and experience of individual members of the Executive Board and of the Supervisory Board, succession planning for the Executive Board and Supervisory Board, preparation of election proposals of the Supervisory Board for the election and appointment of shareholders' representatives to the Supervisory Board.

The Compensation Oversight Committee focuses on supporting the Supervisory Board in designing and stipulating appropriate pay systems for the members of the Executive Board, as well as reviewing the appropriate set-up of the pay systems, the effects of the pay systems on risk management, capital management and liquidity management, supporting the Supervisory Board in monitoring proper involvement of the internal control operations when setting up the pay systems and supporting the Supervisory Board in drafting the compensation report.

The duties of the joint Risk and Audit Committee include preliminary deliberations regarding the financial statements and the management report, the consolidated financial statements and the group management report, as well as reviewing the reporting and accounting processes, the effectiveness of the control system, the internal risk management system, the internal audit system and execution of the actual audit. The joint Risk and Audit Committee prepares proposals for the appointment of an auditor, submits proposals for the level of the auditor's compensation and deliberates on termination or continuation of the audit engagement. It deliberates on the company's current and future overall risk propensity and strategy, it reviews whether the company's risk, capital and liquidity structure is adequately factored into the incentives offered by the pay system. It also monitors rapid rectification of any deficiencies determined by the auditor or bank-internal audit functions during internal and external audits.

The members of the Risk and Audit Committee in the 2024 financial year were Dr Andreas Freiling (Chairman of the Risk and Audit Committee), Ms Ursula Blümer, Mr Matthias Lautenschläger and Ms Sarah Rössler. The members of the Nomination Committee in the 2024 financial year were Ms Sarah Rössler, who was also Chairwoman of the Nomination Committee, Mr Bernd Groß, Mr Matthias Lautenschläger and Ms Monika Stumpf. The members of the Compensation Oversight Committee were Ms Sarah Rössler (Chairwoman), Dr Andreas Freiling, Mr Matthias Lautenschläger and Ms Monika Stumpf.

Corporate governance in the Supervisory Board

In 2024, the Executive and Supervisory Boards of MLP SE again dealt intensively with the German Corporate Governance Code and further new legislation significant to the work performed by the Supervisory Board and its committees. The GCGC with the amendments last adopted on April 24, 2022 was discussed by the Supervisory Board. Stipulations were analysed and corresponding adjustments to the internal regulations and procedures followed by the Supervisory Board were either proposed or submitted for verification.

Diversity concept for the Executive Board and Supervisory Board

The legislation on equal participation of women and men in management positions came into force on May 1, 2015. It stipulates an obligation to specify targets for members of supervisory and executive boards, as well as the two upper management levels, although it does not define an actual minimum target. Insofar as the percentage of women is below 30%, the targets must then not fall below the percentage reached. The legal deadline for achievement of the first targets was fixed for June 30, 2017. After that deadlines can be up to five years. The targets and deadlines are to be specified in concrete terms. In addition to this, it must be stated whether the specified targets have been achieved and, if not, information as to the reasons must be specified.

The Supervisory Board at MLP SE has set internal rules for the composition of both the Executive Board and Supervisory Board. Assuming equal personal and professional aptitude, these stipulate a minimum 25% representation of women in both bodies (in the case of the Supervisory Board on the shareholder side). MLP SE has met this quota on the shareholder side of the Supervisory Board. The Supervisory Board has had at least one female member continually since 2015. The quota has therefore been met for many years. This makes any further reporting on the implementation steps with regard to meeting the quota unnecessary.

In November 2020, the Supervisory Board confirmed the target of at least 25% for the proportion of women on the Executive Board – which currently only comprises three persons – and set itself the end of the financial year 2025 as the implementation deadline. In 2024, the Supervisory Board resolved that it intended to appoint Ms Angelika Zinkgräf as a member of the Executive Board with effect from December 1, 2025 and to create a new mandate with responsibility for Human Resources, Compliance and Internal Audit. At its meeting in December 2024, the Supervisory Board then appointed Ms Angelika Zinkgräf as a member of the Executive Board with effect from December 1, 2025. A positive effect of Ms Zinkgräf's appointment is that the aforementioned limit will be reached in 2025. The Supervisory Board will continue to make every effort to take the aforementioned target into account when making personnel changes. This is to be supported by various measures, including efforts with respect to diversity making appointments to executive positions, as well as giving appropriate consideration to women at the management levels in the company. To this end, measures directed at improving reconciliation of work and family life have already been introduced in the company in the past. The newly established Nomination Committee will also address the aforementioned objective of promoting representation of the underrepresented gender, as well as the strategy for achieving this. The legal regulation, based on which the Executive Board at listed companies must include at least one woman or one man when it has four or more members is not applicable to MLP SE.

Cooperation between Executive Board and Supervisory Board

Intensive dialogue between the Executive and Supervisory Boards forms the basis of transparent and responsible company management. The Executive Board of MLP SE provides the Supervisory Board with regular, timely and comprehensive information on the Group's position, including information on its risk situation, risk management and compliance. The Supervisory Board is also provided with information outside of its regular meetings in the case of particularly important or urgent projects. Furthermore, the Chairwoman of the Supervisory Board meets with the Executive Board on a regular basis to discuss specific issues. The Chairwoman of the Supervisory Board informs the other members of the Supervisory Board in detail about the content of her discussions with the Executive Board. The Supervisory Board discusses the Group's corporate planning and plans for strategic growth with the Executive Board.

Significant legal transactions by the Executive Board require the consent of the Supervisory Board. A set of rules of procedures issued by the Supervisory Board in particular governs the distribution of business, powers of approval outside the Articles of Association and co-operation with the Executive Board. Further details on the co-operation between Executive Board and Supervisory Board can be found in the report by the Supervisory Board.

Further disclosures on the Supervisory Board's activities can be found in the report by the Supervisory Board.

Directors' Dealings

Pursuant to Art. 19 of the Market Abuse Regulation (MAR), persons assuming executive positions at the issuer of shares must notify the issuer and the Federal Financial Supervisory Authority (BaFin) of transactions in financial instruments. This obligation also applies to natural persons and legal entities that are closely linked to such a person assuming an executive position.

Transactions up to a total value of €20,000 per calendar year are exempt from the notification requirement.

In the financial year 2024, no transaction pursuant to Art. 19 of the Market Abuse Regulation (MAR) was reported to us.

Reported transactions from previous years can be viewed on our website at www.mlp-se.com.

Corporate governance practices – Compliance as a management duty

Compliance regulations

The trust of our clients, shareholders and business partners in our capacity to act professionally and responsibly forms the basis of our business operations. Compliance with all relevant legislation and capital market regulations represents the foundation of our business activities and is an integral part of our corporate culture. Violations of applicable legislation and regulations not only have the potential to lead to legal disputes and financial losses but can also have a negative impact on our Group's reputation. The Executive Board at MLP SE ensures Group-wide compliance with legal provisions and internal company guidelines, while also guaranteeing both a trusting and transparent system of corporate governance.

The basic principles of abidance to laws, integrity and economically successful business practices are firmly anchored in our Code of Business Conduct and Ethics. Our compliance activities are based on a Group-wide compliance strategy, which in particular employs preventive measures to avoid the occurrence of risks due to non-compliance with applicable legislation, internal standards and processes. The focus here is on compliance with legal provisions and corporate policies with regard to the provision of (ancillary) securities services, consumer and data protection, as well as the prevention of money laundering, financing terrorist activities and all other criminal conduct. In the interests of our clients, shareholders and employees, the Compliance organisation supports and advises the Executive Board in establishing uniform standards for all Group companies. Taking into account the constantly changing regulatory requirements and market conditions, Compliance steers the continuous further development of our internal behavioural standards and monitors implementation of applicable requirements.

On the basis of a Group-wide risk analysis, the Compliance function identifies, analyses and evaluates the compliance risks relevant to MLP SE's business operations. The compliance function also collaborates with the specialist departments responsible for developing risk-reducing measures and continuously monitors their effectiveness in our day-to-day business.

Regular training sessions, during which all employees of the MLP Group familiarise themselves with the key regulations as a way of preventing any accidental infractions while also providing support in applying our Code of Business Conduct and Ethics, represent an important element of our risk prevention measures.

In particular they include web-based training events on market abuse legislation, securities compliance, data and consumer protection as well as the prevention of money laundering, financing of terrorist activities and criminal conduct. In addition, the compliance function is available to all employees as a point of contact for reporting internal suspicious transactions with regard to criminal activities or violations against our compliance regulations. Any rule violations determined are investigated promptly, comprehensively clarified and then used to eliminate any weaknesses identified. The Executive Board and Supervisory Board are regularly informed of all relevant actions and measures taken by the Compliance function.

The Code of Business Conduct and Ethics for the MLP Group also sets out the measures for insider trading prevention and describes the internal provisions for execution of employee transactions. It also ensures that confidential information is handled responsibly at MLP and defines standards for consulting and supporting our clients, as well as the policy on giving and accepting invitations and gifts. To prevent any impairment of client interests, we have defined policies regarding the avoidance and monitoring of conflicts of interest and the acceptance of gifts. These policies are regularly reviewed and adapted to changing requirements.

Defined company values

With its brands Deutschland.Immobilien, DOMCURA, FERI, MLP, RVM and TPC, the MLP Group is the financial services provider for private, corporate and institutional clients.

In 2021, MLP developed a Group vision as a way of further strengthening the common basis for successful cooperation. In this context, a mission statement was drafted for the MLP Group.

A transfer of knowledge and expertise takes place within the Group. The specialists support one another in the areas of research and concept development, as well as in client consulting. This valuable and targeted interaction generates additional value for clients, as well as for the company and its shareholders. This approach has been consistently pursued over the past two years. The campaign "MLP – A strong WE" communicates MLP's unique network even more clearly to the outside.

The various corporate missions are arranged under the umbrella of a common Group vision, which all companies work to. The corporate mission of MLP with its governing principles is based on various core values, which were defined with input from a large number of employees and consultants. Cooperation at our MLP companies is characterised by the three pillars of the MLP spirit: Passion for clients, pleasure in working for and with one another, as well as a desire to become even better.

Our mission statement and corporate culture are shaped to a large degree by our managers. We therefore attach great importance to good and modern leadership, having also developed leadership principles in an interactive workshop in autumn 2021 with the involvement of managers from all hierarchical levels. These form the basis for MLP's leadership/management culture and the ongoing development of MLP's management and personnel development tools. We conduct an annual survey on the general sentiment among our workforce and the leadership quality. The results of the survey in the financial year 2024 show a consistently high level of satisfaction with MLP as an employer and with leadership performance in general. We consistently utilise the insights gained from the survey and indications of potential for improvement in our ongoing work with our management team. You can find details on our corporate mission on our homepage at www.mlp-se.com.

Our personnel strategy is also one of our key corporate management practices. In order to continuously generate added value for our clients and ensure the sustainable success of the MLP Group, we ensure that we have a strong team of qualified and committed managers and employees that we deploy according to their skills, that feel committed to our mission statement and that enjoy developing our Group network. Our personnel strategy is based on four pillars: "People and cooperation", "Attractive employer", "Shaping the future and promoting the potential of our employees" and "Working efficiently". It makes a significant contribution to ensuring that people enjoy working for the companies in the MLP Group – both now and in the future.

Our personnel strategy defines key HR action areas for us.

Examples include strategic personnel and succession planning, positioning the employer brand of the companies in the MLP Group and increasing employer attractiveness. This is also and especially true for women, for example through the active expansion and optimisation of family-friendly working conditions at MLP and our management culture. Based on a survey addressing health in the workplace, we established a comprehensive package of preventive health measures in the 2024 financial year. Promoting and helping maintain the health of our employees is something we consider especially important. In doing so, we always consider a variety of aspects, such as the working atmosphere, flexibility in terms of working hours, mutual appreciation, a culture of constructive criticism and social programmes. We are convinced that our measures to promote the physical and mental health of our employees can have a positive impact on motivation, maintaining performance and reducing sick days.

Another area of action revolves around actively working towards greater participation of women at all management levels within the company. MLP places great importance on supporting women and ensuring a good work-life balance. The company has therefore already made this topic a focus over the last few years and implemented various measures to promote women into management positions. Ensuring a balance between work and family life should also reinforce equality at the companies in the MLP Group and help maintain the health of our employees. We support our employees in harmonising their individual life concepts with a productive and successful career. We firmly believe that a healthy life balance contributes to the motivation and satisfaction of our employees, which is why we are establishing the framework conditions for this at the companies in the MLP Group. We also emphasise this through our certification in accordance with the workandfamily audit, which the companies operated jointly by MLP successfully completed for the first time in 2019. On the basis of the recertification of the audit in 2022, further implementation objectives for promoting family friendliness, as well as life phase-oriented alignment of the measures for employee retention have been agreed for the next three years.

Stipulations for promoting equal participation of women in management positions pursuant to § 76 (4) of the German Stock Corporation Act (AktG)

The legislation on equal participation of women and men in management positions came into force on May 1, 2015. It stipulates an obligation to specify targets for members of supervisory and executive boards, as well as the two upper management levels, although it does not define an actual minimum target. Insofar as the percentage of women is below 30%, the targets must then not fall below the percentage reached. The deadline for achievement of the first targets was fixed for June 30, 2017. After that deadlines can be up to five years. The targets and deadlines are to be specified in concrete terms. In addition to this, it must be stated whether the specified targets have been achieved and, if not, information as to the reasons must be specified.

In November 2020, the Executive Board at MLP SE approved a target of at least 33% for female managers at the first management level below Board level at MLP SE. In December 2022, the Executive Board furthermore approved the same minimum target figure of 33% for female managers at the second management level below Executive Board level at MLP SE. These targets are to be met by the end of the financial year 2025. As of 31 December 2024, the proportion of women at the first management level below the Executive Board at MLP SE (heads of divisions) was 60% out of a total of 5 individuals. At the second management level below the Executive Board at MLP SE (heads of departments), the proportion of women was 0% with a total of only 3 individuals.

In addition, MLP SE's Executive Board compensation has incorporated a sustainability component since the financial year 2023. This includes targets for increasing the proportion of women in management positions. All measures ensure that diversity is taken into account when filling management positions at the company.

We support our employees in harmonising their individual life concepts with a productive and successful career and establish the framework conditions for this at the companies in the MLP Group. As a sign of our public commitment to diversity, MLP signed the Diversity Charter in 2014. Accordingly, we have committed ourselves to promoting an unprejudiced working environment for our employees in which equal opportunities are a matter of course. The MLP Group promotes diverse teams and establishes a corporate culture that is characterised by a strong sense of togetherness and in which all our team members feel appreciated. We want our employees to be able to contribute freely and realise their full potential within the company, irrespective of gender, ethnicity, origin, age or religion. Only in this way – with many talents, different backgrounds and strengths – can we reap the benefits together in a challenging and futureoriented environment.

In accordance with applicable national law and international standards, the companies in the MLP Group pursue a fair and discrimination-free employment policy. Individual performance, skills/competencies and potential related to the requirements of the respective job profile are the only criteria used for recruitment, further training or promotions. We have firmly anchored the protection of an honest, fair and discrimination-free working environment in our MLP Code of Business Conduct and Ethics. The Code also makes it clear that we expect our managers and employees to behave prudently and respectfully, as well as to oppose any form of discrimination.

An explanation of the business and risk strategy as well as the risk management system can be found in the chapter "Risk report" of the Annual Report.

Equal pay for women and men doing the same or equivalent work as per the German Transparency of Pay Act (EntgTranspG)

The Transparency of Pay Act (EntgTranspG) aims to counteract wage disparities between women and men for equal or equivalent work and promote the disclosure of company remuneration regulations. At enterprises with more than 200 employees, employees also have an individual right to information regarding the pay structures within that enterprise.

A "pay system" works agreement was concluded in December 2015 as the basis for establishing improved transparency of pay at MLP. It applies to MLP SE, MLP Banking AG, as well as MLP Finanzberatung SE in the version dated July 2, 2019. Each job type is assessed independently of the employee, ensuring a gender-neutral approach, and then assigned to a salary band. This range serves as the basis for salary benchmarking when hiring new staff and transitioning existing staff into new positions. Private employers that generally have more than 500 employees are called upon to use operational audit procedures to regularly review the application of their pay systems and the various pay components paid for compliance with the equal pay requirement in the meaning of this legislation. The unadjusted pay gap between women and men, weighted according to salary band and number of individuals, at the company headquarters of the joint operations of MLP SE, MLP Banking AG and MLP Finanzberatung SE, that are not classified as senior executives within the meaning of § 5 (3) of the German Works Constitution Act (BetrVG), was 3.28% in the financial year 2024 (2023: 3.49%).

MLP also voluntarily conducted an internal audit procedure for the joint operations of MLP SE, MLP Banking AG and MLP Finanzberatung SE in 2018 and then repeated this in the financial year 2023 using the same methodological principles. This audit procedure, which is repeated every three years, also came to the pleasing conclusion that there are no systematic gender-specific compensation discrepancies at MLP. In contrast to the survey performed in 2018, individual salary deviations were not only reviewed for women, but also for men in the financial year 2023. As a result, the salary of one female employee was raised by 12% and of one male employee by 16%. No further individual adjustments were made. It was not possible to take into account the back office employees as part of the individual review process, as almost all of the employees working in the back office are women and therefore, as in 2018, there was no suitable and statistically reliable male benchmark.

Alongside these purely pay-based measures, MLP also offers a variety of additional measures to promote a good work-life balance and therefore contribute to greater equality of pay.

Special legal provisions

As per Recommendation F.4 of the GCGC 2022, the Supervisory Board and Executive Board at listed companies that are subject to special legal provisions should specify in the Declaration of Corporate Governance which recommendations of the Code could not be applied due to statutory provisions. It is the opinion of the Executive Board and Supervisory Board that the provisions of the Ordinance on the Supervisory Requirements for Institutions' Pay Systems (InstitutsVergV) take precedence over the provisions of the German Stock Corporation Act (AktG) or the GCGC in certain cases. Alongside this, the mandatory requirements of § 25d (7) et seq. of the German Banking Act (KWG) for establishing a joint Risk and Audit Committee, as well as a Nomination Committee and a Compensation Oversight Committee, are also a deviation from the provisions of GCGC 2022. With regard to recommendation D4 of the GCGC 2022, according to which the Supervisory Board should form a Nomination Committee composed exclusively of shareholder representatives, MLP deviates on the basis of a special statutory regulation.§ 25d (11) of the German Banking Act (KWG) stipulates that the Nomination Committee of the Supervisory Board must assume additional tasks that should not only be performed by the shareholder representatives on the Supervisory Board. The Nomination Committee of the Supervisory Board at MLP SE therefore also includes one employee representative. However, assurances are in place that the nominations proposed to the Annual General Meeting for the election of shareholder representatives to the Supervisory Board are prepared solely by the representatives of the shareholders that sit on the Supervisory Board.

EXPLANATORY REPORT ON THE DISCLOSURES PURSUANT TO § 176 (1) OF THE GERMAN STOCK CORPORATION ACT (AKTG), AS WELL AS § 315A (1) AND § 289A (1) OF THE GERMAN COMMERCIAL CODE (HGB)

Disclosure requirements

Composition of capital

As of December 31, 2024, the company's share capital amounts to €109,334,686 and is divided into 109,334,686 ordinary bearer shares with a nominal value of € 1 per share.

Restrictions on voting rights or on the transfer of shares

There are no restrictions on voting rights or on the transfer of MLP SE's shares.

Capital stakes

The German Securities Trading Act (WpHG) requires any investor whose share of voting rights reaches, exceeds or falls below certain thresholds as the result of purchases, disposals or otherwise, to notify the company and the German Federal Financial Supervisory Authority (BaFin) thereof. The lowest threshold for the duty of notification to apply is 3%. Any stakes that reach or exceed 10 % of voting rights must be recorded in this explanatory report. MLP SE has been notified of four shareholders who directly or indirectly exceeded 10% of the voting rights:

Number of shares* Stakeholding
percentage*
Dr h.c. Manfred Lautenschläger, Gaiberg 29,883,373 1 27.33% 1
Christine Lautenschläger, Markus Lautenschläger, Matthias Lautenschläger, Catharina
Seegelken, Maximilian Lautenschläger, Gaiberg		 30,133,373 2 27.56% 2
Angelika Lautenschläger Beteiligungen Verwaltungs GmbH, Gaiberg 22,796,771 20.85%
HanseMerkur Krankenversicherung auf Gegenseitigkeit, Hamburg 10,964,000 3 10.03% 3

* the status known to MLP SE through voting rights announcements as of December 31, 2024

1 Based on information provided by Dr h.c. Manfred Lautenschläger there is a voting trust and pooling agreement as per § 34 (2) of the German Securities Trading Act (WpHG) between Dr h.c. Manfred Lautenschläger (2.37% of voting rights), the companies controlled by him, Angelika Lautenschläger Beteiligungen Verwaltungs GmbH (20.85% of voting rights) and Manfred Lautenschläger Stiftung GmbH (4.11% of voting rights, controlled by the community of heirs of his wife Angelika Lautenschläger). Of the 27.33% of voting rights, Mr Lautenschläger is therefore attributed the voting rights of Manfred Lautenschläger Stiftung GmbH and Angelika Lautenschläger Beteiligungen Verwaltungs GmbH as per § 34 (2) of the German Securities Trading Act (WpHG).

2 As per the notification submitted by Christine Lautenschläger, Markus Lautenschläger, Matthias Lautenschläger, Catharina Seegelken, Maximilian Lautenschläger: Pursuant to § 34 (2) of the German Securities Trading Act (WpHG), a voting trust and pooling agreement is in place between Dr h.c. Manfred Lautenschläger (2.09%), Angelika Lautenschläger Beteiligungen Verwaltungs GmbH (20.85%) and Manfred Lautenschläger Stiftung GmbH (4.57%), together totalling 27.51%. The inheritance community Angelika Lautenschläger holds 0.05% via M.L. Stiftung gemeinnützige GmbH.

3 Notification for HanseMerkur Krankenversicherung AG as shareholder.

Shares with special control rights

Shares with special control rights have not been issued.

System of control of any employee share scheme where the control rights are not exercised directly by the employees

Where MLP SE has in the past issued shares to employees as part of its employee participation programme, these shares were transferred to the employees directly. Said employees can or could then exercise the control rights granted by the shares issued directly in line with the legal requirements and the company's Articles of Association.

Legal stipulations and provisions of the Articles of Association regarding the appointment and replacement of members of the Executive Board

The prerequisites for appointing and dismissing members of the Executive Board, as well as amending the company's Articles of Association, are based on the respective provisions of applicable European and German law, including EC Regulation No. 2157/2001 regarding the Statute for a European Company ("SE Regulation") and the German Stock Corporation Act. The appointment and dismissal of members of the Executive Board are governed in particular by Art. 46 et seq. of the SE Regulation, as well as Art. 9 of the SE Regulation in conjunction with § 84 and § 85 of the German Stock Corporation Act (AktG). The company's Articles of Association specify that the Executive Board must comprise at least two people. The members of the Executive Board are appointed for a maximum of five years. A further appointment or extension of the time in office, each for a maximum of five years, is permitted. The Supervisory Board can revoke the appointment of a member of the Board before the time in office expires for an important reason. In this context, an important reason could be a gross breach of duty, inability to manage the company properly or vote of no confidence by the Annual General Meeting. The Supervisory Board decides on the number of Executive Board members, their appointment and the revocation of their appointment as well as the conclusion, amendment and termination of the employment contracts with Executive Board members. The Supervisory Board may appoint one chairperson of the Board and one or more vice chairpersons.

Amendments to the company's Articles of Association

Pursuant to Art. 59 of the SE Regulation in connection with § 179 (1) and (2) sentence 1 of the German Stock Corporation Act (AktG), any amendment to the company's Articles of Association requires a resolution of the Annual General Meeting with a majority of at least three quarters of valid votes cast. When making amendments to the company's Articles of Association for which only a simple majority is required for stock corporations incorporated under German law (AG), § 19 (4) of the company's Articles of Association provides, in deviation from § 179 (2) sentence 1 of the German Stock Corporation Act (AktG), that resolutions seeking to amend the company's Articles of Association by the Annual General Meeting can be passed with just a simple majority of the share capital votes entitled to vote on the resolution, unless mandatory legal provisions require a greater majority, provided at least half of the share capital is represented, otherwise a majority of two thirds of votes cast. However, the Supervisory Board is authorised, pursuant to § 23 of the company's Articles of Association, to make amendments to the company's Articles of Association that relate to the formulation thereof.

Authority of the Executive Board to issue or buy back shares

A resolution passed by the Annual General Meeting on June 2, 2022 authorised the Executive Board, with the Supervisory Board's approval, to increase the company's share capital by up to € 21.5 million in total by June 1, 2027 by issuing on one or more occasions new ordinary bearer shares in exchange for cash or non-cash contributions and, with the Supervisory Board's approval, to exclude the shareholders' subscription rights for the issuance of shares in exchange for non-cash contributions.

If the share capital is increased in return for cash contributions, shareholders must be granted subscription rights. However, the Executive Board has been authorised, with the approval of the Supervisory Board, to exclude the subscription right of the shareholders if the issue price does not fall significantly short of the stock market price of company shares of the same class. However, this authorisation is subject to the condition that shares issued in exclusion of subscription rights as per § 186 (3) sentence 4 of the German Stock Corporation Act (AktG) do not exceed 10% of the share capital, either at the time of coming into effect or at the time they are exercised (authorised capital).

As per the resolution of the Annual General Meeting from June 24, 2021, the company is also authorised, pursuant to § 71 (1) No. 8 of the German Stock Corporation Act (AktG), to purchase up to €10,933,468 – i.e. slightly less than 10% of the company's share capital during the authorisation period up to June 23, 2026. On the basis of this authorisation, MLP Finanzberatung SE – a wholly-owned subsidiary of MLP SE – which was also authorised in this regard by the Annual General Meeting, acquired 577,202 shares up to March 5, 2024 on the basis of an Executive Board resolution and with the consent of the Supervisory Board at MLP SE. With the consent of both the Executive Board and the Supervisory Board at MLP SE, the Executive Board at MLP Finanzberatung SE approved the share buyback in 2024. The redeemed shares are to be used to cover consultant entitlements in connection with the 2023 participation programme. MLP Finanzberatung SE still held 37,062 shares on the reporting date of December 31, 2024. These shares and further bought-back shares are then once again to be issued to the commercial agents working for MLP Finanzberatung SE within the scope of the 2024 participation programme – this is likely to take place in the second quarter of 2025.

Significant agreements of the company that take effect in the event of a change of control of the company following a takeover bid

There are no significant agreements that take effect in the event of a change of control of the company following a takeover bid.

Settlement agreements between the company and Executive Board or employees in the event of a takeover bid

The contracts of employment between the company and the Chief Executive Officer, Dr Uwe Schroeder-Wildberg, and Executive Board members Manfred Bauer and Reinhard Loose contain a clause stating that said members are entitled to terminate their contracts with a notice period of one month in the event that a third party who had a share in MLP of less than 10 % at the time at which the contracts were concluded acquires a share of at least 50% of the voting rights. If any of these Executive Board members chooses to exercise this right to terminate, MLP is obliged to pay said member compensation corresponding to four times (4x) the respective fixed annual salary if the contract has not been terminated as a result of the change in control, provided. The prerequisite is that the respective contract is terminated more than two years before it reaches its normal termination date. For all members of the Executive Board, the compensation to be paid in the event of a "change of control" corresponds to no more than twice the average compensation, based on the total compensation of the last full financial year prior to termination of their contract and the total anticipated compensation for the financial year still in progress when their contract is terminated. The service contract of Dr Schroeder-Wildberg is set to run until December 31, 2027, the service contract of Mr Manfred Bauer is set to run until April 30, 2025 and the service contract of Mr Reinhard Loose is set to run until January 31, 2029. In the case of a termination of contract within two years of the scheduled termination data, the severance payment will only be paid pro rata temporis.

APPROVAL OF THE JOINT MANAGEMENT REPORT

The Executive Board prepared the joint management report on March 10, 2025 and will present them to the Supervisory Board on March 26, 2025 for publication.

Wiesloch, March 10, 2025

MLP SE

Executive Board

Dr Uwe Schroeder-Wildberg Manfred Bauer

Reinhard Loose

Consolidated financial statements

CONSOLIDATED INCOME STATEMENT AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Consolidated income statement for the period from January 1 to December 31

All figures in €'000 Notes 2024 2023
Sales revenue (9) 1,037,534 941,125
Other revenue (10) 29,139 32,373
Total revenue 1,066,673 973,498
Inventory changes (11) -4,295 -11,262
Commission expenses (12) -474,917 -426,701
Real estate development expenses (13) -5,096 -18,676
Interest expenses (14) -30,220 -16,333
Remeasurement gains or losses/loan loss provisions (15) -7,988 -1,037
Personnel expenses (16) -233,031 -209,078
Depreciation and impairments (17) -30,044 -35,820
Other expenses (18) -187,534 -184,312
Earnings from investments accounted for using the equity method (19) 1,444 446
Earnings before interest and taxes (EBIT) 94,991 70,724
Other interest and similar income 6,279 8,423
Other interest and similar expenses -7,913 -9,633
Remeasurement gains or losses (non-operating) 6,197 -539
Net financial result (20) 4,563 -1,749
Earnings before taxes (EBT) 99,554 68,976
Income taxes (21) -30,276 -24,853
Net profit 69,278 44,123
of which attributable to:
owners of the parent company 69,265 48,582
non-controlling interests 13 -4,459
Earnings per share in €1, 2 (22)
Basic 0.63 0.44
Diluted 0.63 0.44

1 Basis of calculation basic: average number of ordinary shares outstanding as of December 31, 2024: 109,188,748

2 Basis of calculation diluted: average number of ordinary shares outstanding as of December 31, 2024: 109,334,686

Consolidated statement of comprehensive income for the period from January 1 to December 31

All figures in €'000 Notes 2024 2023
Net profit 69,278 44,123
Gains/losses due to the revaluation of defined benefit obligations 1,269 -5,299
Gains/losses due to equity instruments measured at fair value through other comprehensive
income		 1,433 625
Deferred taxes on non-reclassifiable gains/losses (21) -338 1,557
Non-reclassifiable gains/losses 2,364 -3,117
Gains/losses due to currency translation differences -16 143
Deferred taxes on reclassifiable gains/losses (21) - -
Reclassifiable gains/losses -16 143
Other comprehensive income 2,348 -2,974
Total comprehensive income 71,626 41,149
Of which attributable to
owners of the parent company 71,613 45,608
non-controlling interests 13 -4,459

STATEMENT OF FINANCIAL POSITION

Assets as of December 31, 2024

All figures in €'000 Notes Dec. 31, 2024 Dec. 31, 2023
Intangible assets (23) 221,864 225,458
Property, plant and equipment (24) 157,904 142,334
Investments accounted for using the equity method (19) 3,192 2,202
Deferred tax assets (21) 9,382 3,669
Receivables from clients in the banking business (25) 1,355,847 1,230,989
Receivables from financial institutions in the banking business (26) 764,881 779,074
Financial assets (27) 188,171 184,127
Inventories (28) 26,175 39,555
Tax refund claims (21) 3,485 7,408
Other receivables and assets (29) 271,054 248,726
Cash and cash equivalents (30) 1,150,327 1,053,916
Total 4,152,283 3,917,458

Liabilities and shareholders' equity as of December 31, 2024

All figures in €'000 Notes Dec. 31, 2024 Dec. 31, 2023
Equity attributable to MLP SE shareholders 570,459 538,531
Non-controlling interests -156 -6,326
Total shareholders' equity (31) 570,302 532,205
Provisions (32) 106,784 104,214
Deferred tax liabilities (21) 20,553 17,260
Liabilities due to clients in the banking business (33) 2,913,987 2,764,624
Liabilities due to financial institutions in the banking business (33) 152,837 140,611
Tax liabilities (21) 18,579 17,545
Other liabilities (34) 369,240 341,000
Total 4,152,283 3,917,458

CONSOLIDATED STATEMENT OF CASH FLOW

Consolidated statement of cash flow for the period from January 1 to December 31

All figures in €'000 2024 2023
Net profit (total) 69,278 44,123
Income taxes paid/reimbursed -28,427 -20,811
Interest received 94,392 61,529
Interest paid -30,888 -18,204
Earnings from investments accounted for using the equity method -1,444 -446
Dividends received from investments accounted for using the equity method 454 2,933
+ Depreciation/impairments/- write-ups of intangible assets and property, plant and equipment 30,044 35,820
+ Depreciation/- impairments/write-ups of financial assets -1,211 2,702
+ Allowances for bad debts 9,631 721
Earnings from the disposal of intangible assets and property, plant and equipment 920 14
Earnings from the disposal of financial assets 98 -
Adjustments from income taxes, interest and other non-cash transactions -42,412 -23,383
Changes in operating assets and liabilities
- Increase/+ decrease of receivables from financial institutions in the banking business 14,193 -26,282
+ Increase/- decrease of liabilities due to banks in the banking business 12,226 3,576
- Increase/+ decrease of receivables from clients in the banking business -134,489 -82,416
+ Increase/- decrease of liabilities due to clients in the banking business 149,362 131,143
- Increase /+ decrease of rights of use IFRS 16 -13,623 -15,010
- Increase/+ decrease of inventories 4,238 11,175
- Increase/+ Decrease of other assets -13,805 -11,353
+ Increase/- decrease of other liabilities 43,866 14,248
+ Increase/- decrease of provisions 2,571 6,588
Cash flow from operating activities 164,974 116,666
Purchase of intangible assets and property, plant and equipment -27,234 -16,609
Proceeds from the disposal of intangible assets and property, plant and equipment 309 130
Repayment of other investments (fixed-term and time deposits) 14,986 63,188
Repayment of equity instruments of other companies 4,065 -
Repayment of fixed-interest securities 36,613 25,615
Investment in fixed income securities -51,845 -36,614
Proceeds from the disposal of other financial assets 254 -
Payments for investments in financial assets - -2,150
Payments from the acquisition of other financial assets (non-consolidated subsidiaries) -4,036 -360
Payments from the sale of consolidated companies - -4,646
Cash flow from investing activities -26,888 28,554
Dividends paid to shareholders of MLP SE -32,789 -32,800
Cash inflows from borrowings 15,189 1,194
Cash outflows from the repayment of borrowings -8,563 -7,018
Principal payments of leasing liabilities -15,134 -14,601
Cash outflows for the acquisition of additional equity interests in subsidiaries -2,143 -
Cash flow from financing activities -43,440 -53,225
Cash and cash equivalents at the beginning of period 1,053,916 957,640
Cash-effective changes in cash and cash equivalents 94,646 91,996
Changes in cash and cash equivalents due to changes to the scope of consolidation 1,748 792
Changes in cash and cash equivalents due to exchange rate movements 17 -103
Changes in liabilities to banks due on demand (excluding the banking business) -20 3,592
Cash and cash equivalents at the end of period 1,150,307 1,053,916
Composition of cash and cash equivalents
Cash and cash equivalents 1,150,327 1,053,916
Liabilities to banks due on demand (excluding the banking business) -20 -
Cash and cash equivalents at the end of period 1,150,307 1,053,916

The disclosures on the statement of cash flow appear in Note 35.

Statement of changes in equity for the period from January 1 to December 31, 2024

All figures in €'000 Sub
scribed
equity		 Capital
reserves		 Gains/losses from
changes in the fair
value of financial
assets		 Revaluation
gains/losses related to
defined benefit
obligations after taxes		 Currency
changes		 Retained
earnings		 Total
share
holders'
equity		 Non-controlling
interests		 Total
Share
holders'
equity
As of Jan. 1, 2024 109,333 149,623 638 -7,381 373 285,946 538,531 -6,326 532,205
Acquisition of treasury stock -36 - - - - -153 -188 - -188
Share-based compensation - -1,037 - - - - -1,037 - -1,037
Dividend - - - - - -32,789 -32,789 -164 -32,953
Changes in non-controlling interests - - - - - -5,938 -5,938 5,769 -169
Transactions with owners -36 -1,037 - - - -38,880 -39,953 5,605 -34,348
Net profit - - - - - 69,265 69,265 13 69,278
Other comprehensive income - - 1,411 953 -16 - 2,348 - 2,348
Total comprehensive income - - 1,411 953 -16 69,265 71,613 13 71,626
Changes to the scope of consolidation - - - - - 268 268 552 819
As of Dec. 31, 2024 109,298 148,585 2,049 -6,428 358 316,598 570,459 -156 570,302

The notes on shareholders' equity appear in Note 31.

All figures in €'000 Sub
scribed
equity		 Capital
reserves		 Gains/losses from
changes in the fair
value of financial
assets		 Revaluation
gains/losses related to
defined benefit
obligations after taxes		 Currency
changes		 Retained
earnings		 Total
share
holders'
equity		 Non-controlling
interests		 Total
Share
holders'
equity
As of Jan. 1, 2023 109,288 150,052 16 -3,642 230 271,435 527,379 -1,855 525,524
Acquisition of treasury stock 45 - - - - 116 161 - 161
Share-based compensation - -430 - - - - -430 - -430
Dividend - - - - - -32,800 -32,800 - -32,800
Changes in non-controlling interests - - - - - -1,387 -1,387 1,387 -
Transactions with owners 45 -430 - - - -34,071 -34,455 1,387 -33,069
Net profit - - - - - 48,582 48,582 -4,459 44,123
Other comprehensive income - - 623 -3,739 143 - -2,974 - -2,974
Total comprehensive income - - 623 -3,739 143 48,582 45,608 -4,459 41,149
Changes to the scope of consolidation - - - - - - - -1,399 -1,399
As of Dec. 31, 2023 109,333 149,623 638 -7,381 373 285,946 538,531 -6,326 532,205

Statement of changes in equity for the period from January 1 to December 31, 2023

1. Information about the company

The consolidated financial statements were prepared by MLP SE, Wiesloch, Germany, the parent company of the MLP Group. MLP SE is listed in the Mannheim Commercial Register under the number HRB 728672 at the address Alte Heerstraße 40, 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 fields of old-age provision including occupational pension provision, healthcare provision, non-life insurance, loans and mortgages, wealth management, development and management of real estate properties and banking services.

2. Principles governing the preparation of the financial statements

The consolidated financial statements of MLP SE have been prepared in accordance with International Financial Reporting Standards (IFRS) promulgated by the International Accounting Standard Board (IASB), as adopted in the European Union (EU), taking into account the interpretations of the International Financial Reporting Interpretations Committee (IFRIC). In addition, the commercial law regulations to be observed pursuant to § 315e (1) of the German Commercial Code (HGB) were also taken into account. The financial year corresponds to the calendar year.

MLP prepares its consolidated balance sheet based on liquidity in descending order. This form of presentation offers information that is more relevant than if it were based on the time-to-maturity factor. The consolidated financial statements are prepared on a going concern basis.

The income statement is prepared in accordance with the nature of expense method.

The consolidated financial statements are drawn up in euros (€), which is the functional currency of the parent company. Unless otherwise specified, all amounts are stated in thousands of euros (€'000). Both single and cumulative figures are values with the smallest rounding difference. As a result, differences to reported total amounts may arise when adding up the individual values.

The term "branch office manager", which is used in the following section of the report, encompasses the branch office managers at MLP Finanzberatung SE and the sales agents at MLP Banking AG. We use the term "MLP consultants" to refer to all consultants of the MLP Group. We use the term "employees" to refer to all employees.

3. Amendments to the accounting policies

The accounting policies applied are the same as those used in the previous year, with the following exceptions:

In the financial year 2024, the following new or amended accounting principles from the IFRS standards are to be used for MLP for the first time:

  • Amendments to IAS 1 Disclosure requirements in accordance with the accounting principles
  • Amendments to IAS 7 Amendment regarding supplier financing agreements
  • Amendments to IFRS 16: Leasing liabilities in connection with sale and leaseback transactions

The amended standards do not result in any or any significant effects on the consolidated financial statements of MLP SE.

Adoption of the following new or revised standards and interpretations was not yet binding for the financial year commencing on January 1, 2024:

Amendments to IAS 21 1 Clarification of accounting treatment when there is a lack of exchangeability
Amendments to IFRS 7 and IFRS 9 2,4 Changes in the classification and measurement of financial instruments
Annual Improvements to IFRS accounting
standards — Volume 11 2,4		 Improvements to the standards IFRS 1, IFRS 7, IFRS 9, IFRS 10, IAS 7
IFRS 18 Presentation and disclosure in financial
statements3,4		 Replaces IAS 1 Presentation of financial statements. The objective of IFRS 18 is to
define requirements for the presentation and disclosure of information in general
purpose financial statements (financial statements for short) to ensure that they
provide relevant information that faithfully represents a company's assets, liabilities,
equity, income, and expenses (see IFRS 18.1). IFRS 18 particularly affects the
aggregation and disaggregation of information in the primary financial statements
and the accompanying notes. In addition, IFRS 18 includes comprehensive
regulations on a company's income statement, such as the classification of income
statement items into categories, the presentation of amounts in income statements
based on whether they relate to the entity's main business activities, the mandatory
disclosure of certain subtotals in the income statement and the introduction of a
dedicated section in the notes explaining so-called management-defined
performance measures (MPMs).
IFRS 19 Subsidiaries without public
accountability: Notes3,4		 Introducing simplified disclosure requirements for subsidiaries that are not subject to
their own public accountability requirements and whose parent company applies
IFRS in its published consolidated financial statements.

1 To be applied for financial years beginning on or after January 1, 2025.

2 To be applied for financial years beginning on or after January 1, 2026.

3 To be applied for financial years beginning on or after January 1, 2027.

4 EU endorsement still pending.

MLP did not adopt any standards or interpretations ahead of time that have already been issued but have not yet come into force. The Group will apply the new/revised standards and interpretations at the latest when their adoption becomes binding following endorsement by the EU. With the exception of IFRS 18, the amendments to the standards are not expected to have any significant effects on the consolidated financial statements of MLP SE. MLP is currently in the process of assessing the impact of IFRS 18 on the consolidated financial statements

4. Business combinations and start-ups

In the financial year 2024, MLP did not engage in any company acquisitions nor did it establish any new entities.

5. Scope of consolidation, as well as shares in associates and disclosures on nonconsolidated structured entities

MLP SE and all significant subsidiaries that are controlled by MLP SE are included in the consolidated financial statements. Joint ventures and associated companies included in the consolidated financial statements are measured using the equity method.

Changes in and within the scope of consolidation:

With the share purchase and transfer contract dated November 29, 2023 and taking effect from January 1, 2024, MLP Finanzberatung SE increased its shareholding in Uniwunder GmbH, Dresden from 39.7% to 81.1%. The company was included in the consolidated financial statements of the financial year 2024 for the first time. The purchase price is to be paid in three instalments in the period from January 2024 to November 2027.

The following net assets were included in the consolidated financial statements as a result of the firsttime consolidation: €249 thsd in intangible assets, €47 thsd in property, plant and equipment, €113 thsd in tax refund claims, €446 thsd in other receivables and assets, €1,775 thsd in cash and cash equivalents, €15 thsd in deferred tax liabilities and €568 thsd in other liabilities. As a result of the initial consolidation, a goodwill of €2,104 thsd was recognised. Please refer to the consolidated statement of cash flow for the purchase price instalment paid in the financial year and to Note 34 for the purchase price instalments not yet paid.

The Executive Board of DI Deutschland.Immobilien AG presented a restructuring plan to the company's Supervisory Board at its meeting on March 11, 2024. The Supervisory Board approved the initiation of a restructuring process based on the presented restructuring plan by resolution on the same day. In this connection, DI Deutschland.Immobilien AG was provided with the necessary funds required for sustainable restructuring in the form of cash and in-kind contributions to the capital reserve. As part of the restructuring process, the remaining shares in DI Deutschland.Immobilien AG were transferred to MLP Finanzberatung SE. The increase in the shareholding has an impact on the net profit and equity attributable to non-controlling interests. Further details can be found in Note 31.

With legal effect from April 30, 2024, FERI AG concluded a merger agreement with FERI Management AG. Both companies have their registered office in Bad Homburg v. d. Höhe. The merger of FERI Management AG with and into FERI AG was entered into the commercial register of the absorbing company on April 30, 2024. Consequently, the previous control and profit and loss transfer agreement between MLP SE, Wiesloch, and FERI Management AG has been terminated. MLP SE concluded a new control and profit and loss transfer agreement with FERI AG on April 30, 2024. The entry in the respective commercial register was made on July 22, 2024.

In the financial year 2024, a total of three capital increases were carried out a FERI AG and one capital increase at FERI (Luxembourg) S.A. In each case the underlying reason was regulatory requirements regarding the capital adequacy of the companies

With legal effect as of May 3, 2024, Jahn & Sengstack GmbH, Hamburg, was merged with and into RVM Versicherungsmakler GmbH, Eningen unter Achalm. The entry in the commercial register of the absorbing company was made on May 3, 2024.

In the financial year 2024, Projekte Deutschland.Immobilien GmbH, Hannover, sold 89.9% of its shares in Zehnte Projekte 2 Deutschland.Immobilien GmbH and 89.9% of its shares in Sechste Projekte 2 Deutschland.Immobilien GmbH, both located in Hannover. In addition to the share transfer and purchase agreements, further agreements, particularly distribution agreements, were concluded with the purchaser. Due to the loss of control, the companies were deconsolidated, Furthermore, supplemental agreements to the share transfer and purchase agreements concluded in the 2021 financial year were executed for Seniorenzentrum Albstadt GmbH and Seniorenwohnpark Ehingen GmbH, both based in Bocholt, and additional agreements were revised. As a result of the new agreements concluded with the purchaser in the financial year 2024, MLP has also lost control over these two project companies. The companies were also deconsolidated. For further details on the respective gain on disposal, please refer to Notes 10 and 18.

On March 11, 2024, the shareholders' meetings of RVM Versicherungsmakler GmbH and Dr. Schmitt GmbH Würzburg each approved the use of the exemption option in accordance with § 264 (3) of the German Commercial Code (HGB) regarding the disclosure of their respective annual financial statements as of December 31, 2024. Both companies are included in the 2024 consolidated financial statements of MLP SE with its registered office in Wiesloch.

On March 15, 2024, the Annual General Meeting of DOMCURA Aktiengesellschaft approved an exemption pursuant to § 264 (3) of the German Commercial Code (HGB) from the need to draft a management report as per § 289 of the German Commercial Code (HGB) for the financial year 2024. The company is included in the 2024 consolidated financial statements of MLP SE with its registered office in Wiesloch. The consolidated financial statements are transmitted electronically to the body keeping the company register within the statutory time limits for entry in the company register. A singleentity relationship is in place between the company and MLP SE which obliges MLP SE to the assumption of losses and liability and DOMCURA Aktiengesellschaft to the transfer of profit as per § 302 of the German Stock Corporation Act (AktG).

Changes outside the scope of consolidation:

On June 24, 2024, Projekte Deutschland.Immobilien GmbH, Hannover, acquired 100% of the shares in Steintor 71. V V GmbH, with its registered office in Bonn. With its entry into the commercial register on July 5, 2024, the company was renamed Projekte Deutschland.Immobilien Chemnitz GmbH and its registered office was relocated to Hannover. With legal effect as of October 10, 2024, Projekte Deutschland.Immobilien GmbH sold 49.0% of its shares in the company. The company's registered office was ultimately relocated to Mainz.

With legal effect as of July 9, 2024, RVM Versicherungsmakler GmbH, Eningen unter Achalm, sold all of its shares in Allkuranz Versicherungsmakler GmbH & Co.KG, Münster.

In addition, Erich Schulz GmbH, Hamburg, was merged with and into Hans L. Grauerholz GmbH, Hamburg, with legal effect as of July 24, 2024.

With contractual effect from October 10, 2024, MLP Finanzberatung SE increased its shareholding in pxtra GmbH, Rostock, from 78.50% to 95.76%. This was entered into the company's commercial register on November 7, 2024. We refer to Note 27.

With contractual effect from November 25, 2024, DOMCURA AG, Kiel, increased its shareholding in asspario Versicherungsdienst GmbH, Bad Kreuznach, from 51% to 100% retroactively as of January 1, 2024. The entry in the commercial register was made on December 27, 2024.

Alongside MLP SE as the parent company, the consolidated financial statements as of December 31, 2024 included 33 (previous year: 38) fully consolidated subsidiaries, thereof unchanged from the previous year, 2 fully consolidated foreign subsidiaries and 2 companies consolidated using the equity method.

Listing of shareholdings for the consolidated financial statements as per § 313 of the German Commercial Code (HGB)

As of December 31, 2024 Registered office Share of capital in
%
Fully consolidated subsidiaries
MLP Finanzberatung SE
(100% held by MLP SE)		 Wiesloch 100.00%
MLPdialog GmbH
(100.0% held by MLP Finanzberatung SE)		 Wiesloch 100.00%
ZSH GmbH Finanzdienstleistungen
(100.0% held by MLP Finanzberatung SE)		 Heidelberg 100.00%
MLP Startup GmbH
(100.0% held by MLP Finanzberatung SE)		 Wiesloch 100.00%
Uniwunder GmbH
(81.1% held by MLP Finanzberatung SE)		 Dresden 81.10%
DI Deutschland.Immobilien AG
(100.0% held by MLP Finanzberatung SE)		 Hanover 100.00%
IT Deutschland.Immobilien GmbH
(100.0% held by DI Deutschland.Immobilien AG)		 Hanover 100.00%
Vertrieb Deutschland.Immobilien GmbH
(100.0% held by DI Deutschland.Immobilien AG)		 Hanover 100.00%
Projekte Deutschland.Immobilien GmbH
(100.0% held by DI Deutschland.Immobilien AG)		 Hanover 100.00%
(22) Projekte Deutschland.Immobilien GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
(32) Projekte Deutschland.Immobilien GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
33 Projekte Deutschland.Immobilien GmbH
(80.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 80.00%
41 Projekte Deutschland.Immobilien GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
53 Projekte Deutschland.Immobilien GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
54 Projekte Deutschland.Immobilien GmbH
(80.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 80.00%
62 Projekte Deutschland.Immobilien GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
Neunte Projekte 2 Deutschland.Immobilien GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
Pflegeprojekt Haus Netzschkau GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
Projekte Deutschland.Immobilien Bad Münder GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
Projekte Deutschland.Immobilien Göggingen GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
Projekte Deutschland.Immobilien Stetten GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
Projekte Deutschland.Immobilien Waldmössingen GmbH & Co.KG
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
Zwölfte Projekte 2 Deutschland.Immobilien GmbH
(100.0% held by Projekte Deutschland.Immobilien GmbH)		 Hanover 100.00%
DOMCURA Aktiengesellschaft
(100% held by MLP SE)		 Kiel 100.00%
Nordvers GmbH
(100.0% held by DOMCURA Aktiengesellschaft)		 Kiel 100.00%
FERI AG
(100% held by MLP SE)		 Bad Homburg v. d.
Höhe		 100.00%
FERI (Switzerland) AG
(100.0% held by FERI AG)		 Zurich 100.00%
FERI (Luxembourg) S.A.
(100.0% held by FERI AG)		 Luxembourg 100.00%
RVM GmbH
(100% held by MLP SE)		 Wiesloch 100.00%
Dr. Schmitt GmbH Würzburg
(100.0% held by RVM GmbH)		 Würzburg 100.00%
RVM Versicherungsmakler GmbH
(100.0% held by RVM GmbH)		 Eningen unter
Achalm		 100.00%
RISConsult GmbH
(100.0% held by RVM Versicherungsmakler GmbH)		 Eningen unter
Achalm		 100.00%
MLP Banking AG
(100% held by MLP SE)		 Wiesloch 100.00%
Equity-accounted joint ventures and associates Registered
office		 Share of
capital in %		 Shareholders'
equity (€'000)		 Net profit
(€'000)
MLP Hyp GmbH
MLP Hyp GmbH
(49.8% held by MLP Finanzberatung SE)5		 Wiesloch 49.80% 5,256 2,256
Projekte 2 Deutschland.Immobilien GmbH
(50.0% held by DI Deutschland.Immobilien AG)5		 Hanover 50.00% 116 -103

Due to minor significance, non-consolidated Subsidiaries & joint ventures and associates not accounted for

using the equity method
DIFA Research GmbH i. L.
(49.0% held by MLP Finanzberatung SE)5		 Berlin 49.00% 90 44
pxtra GmbH
(95.8% held by MLP Finanzberatung SE)2		 Rostock 95.76% -2,732 -2,037
amaravia GmbH
(20.0% held by DI Deutschland.Immobilien AG)3		 Überlingen 20.00% -705 -139
WD Immobilien Management GmbH
(100.0% held by DI Deutschland.Immobilien AG)5		 Hanover 100.00% -313 27
Convivo Wohnparks Deutschland Immobilien GmbH i. I.
(50.0% held by DI Deutschland.Immobilien AG)4		 Hanover 50.00% 15 0
Projekte 2 Deutschland.Immobilien Lauben GmbH i. I.
(75.0% held by Projekte Deutschland.Immobilien GmbH)5		 Hanover 75.00% -371 0
Projekte Deutschland.Immobilien Stetten GmbH
(51.0% stake held by Projekte Deutschland.Immobilien GmbH)5		 Mainz 51.00% 18 -7
WiD Wohnungen in Deutschland GmbH & Co.KG
(50.0% held by Projekte Deutschland.Immobilien GmbH)3		 Mainz 50.00% 2 90
(30) Projekte Deutschland.Immobilien GmbH
(50.0% held by Projekte Deutschland.Immobilien GmbH)3		 Hanover 50.00% -184 -52
Convivo Wohnparks Deutschland.Immobilien Wittmund GmbH &
Co.KG i. I.
(50.0% stake held by Projekte Deutschland.Immobilien GmbH)4		 Hanover 50.00% 2 5,975
CP 135. Grundstücks GmbH & Co.KG i. I.
(50.0% stake held by Projekte Deutschland.Immobilien GmbH)4		 Bremen 50.00% 154 148
Grundstücksgesellschaft Berlin Methfesselstraße 29/31 GmbH &
Co.KG
(50.0% stake held by Projekte Deutschland.Immobilien GmbH)4		 Schöneiche
bei Berlin		 50.00% -23 416
Patricius Wohnbaugesellschaft mbh
(40.0% held by Projekte Deutschland.Immobilien GmbH)6		 Bocholt 40.00% 24 -1
Projekt Deutschland.Immobilien Tengen GmbH
(50.0% stake held by Projekte Deutschland.Immobilien GmbH)4		 Hanover 50.00% -1,582 -1,675
Projekte Deutschland.Immobilien Bad Goegging GmbH
(50.0% held by Projekte Deutschland.Immobilien GmbH)3		 Neustadt an
der Donau		 50.00% -5,606 -1,800
Achte Projekte 2 Deutschland.Immobilien GmbH
(100.0% held by Projekte 2 Deutschland.Immobilien GmbH)3		 Hanover 50.00% 129 -18
Care Beteiligungs GmbH
(50.0% held by Projekte 2 Deutschland.Immobilien GmbH)3		 Gießen 25.00% 74 7
Seniorenresidenz "Dr.-Unruh-Str. Wismar" Immobilien GmbH &
Co.KG
(41.0% held by Projekte 2 Deutschland.Immobilien GmbH)3		 Gießen 20.50% -3,281 -320
Seniorenresidenz Velten GmbH & Co.KG
(41.0% held by Projekte 2 Deutschland.Immobilien GmbH)3		 Gießen 20.50% 1,304 4,199
DIEASS GmbH
(100.0% held by DOMCURA Aktiengesellschaft)1,5		 Kiel 100.00% 26 -14
asspario Versicherungsdienst GmbH
(100.0% held by DOMCURA Aktiengesellschaft)5		 Bad
Kreuznach		 100.00% 277 -125
innoAS GmbH
(50.0% held by DOMCURA Aktiengesellschaft)5		 Kiel 50.00% 384 129
AIF Komplementär GmbH i. L.
(25.0% held by FERI AG)2		 Munich 25.00% 22 -4
AIF Register-Treuhand GmbH i. L.
(100.0% held by FERI Aktiengesellschaft)2		 Bad Homburg
v. d. Höhe		 100.00% 7 -3
FERI Private Equity GmbH & Co.KG
(100.0% held by FERI Aktiengesellschaft)2		 Munich 100.00% 14 -1
FERI Private Equity Nr. 2 GmbH & Co KG
(100.0% held by FERI Aktiengesellschaft)2		 Munich 100.00% 1 -0
FPE Direct Coordination GmbH
(100.0% held by FERI Aktiengesellschaft)2		 Munich 100.00% 101 2
FPE Malip GmbH & Co. Beteiligungs KG
(100.0% held by FPE Direct Coordination GmbH)2		 Munich 100.00% 1 -1
FPE Private Equity Beteiligungs-Treuhand GmbH
(100.0% held by FERI Aktiengesellschaft)2		 Munich 100.00% 356 65
FPE Private Equity Koordinations GmbH
(100.0% held by FERI Aktiengesellschaft)2		 Munich 100.00% 101 24
Hans L. Grauerholz GmbH
(100.0% held by RVM GmbH)1,3		 Hamburg 100.00% 796 119
RVM Verwaltungs GmbH
(100.0% held by RVM GmbH)2		 Eningen unter
Achalm		 100.00% 14 -2
Hartmann Versicherungsmakler GmbH
(100.0% held by RVM Versicherungsmakler GmbH)2		 Mannheim 100.00% 673 197
BIG Versicherungsmakler mbH Tiefenbronn 25.00% 481 451

137 MLP Annual Report 2024

(25.0% held by RVM Versicherungsmakler GmbH)2
Vetter Versicherungsmakler GmbH
(25.0% held by RVM Versicherungsmakler GmbH)2		 Kressbronn
am Bodensee		 25.00% 250 191

1 A profit and loss transfer agreement is in place. Presentation of the net result before profit transfer.

2 Shareholders' equity and net profit from the 2023 annual financial statements.

3 Shareholders' equity and net profit from the 2022 annual financial statements.

4 Shareholders' equity and net profit from the 2021 annual financial statements.

5 Provisional shareholders' equity and net profit from the 2024 annual financial statements.

6 Shareholders' equity and net profit from the financial statements as of March 31, 2022.

7 Exchange rate as at the balance sheet date €1 = CHF 0.9395 (previous year: €1 = CHF 0.9300).

Disclosures on non-consolidated structured entities

Structured entities are companies where voting rights or similar rights are not the dominant factor in determining control; for example, when voting rights are limited to administrative tasks and relevant activities are governed by contractual arrangements Examples of structured companies include securitisation companies, asset-backed finance companies and private equity companies. As is also the case with subsidiaries, the structured entities need to be consolidated whenever MLP SE controls them.

Non-consolidated structured entities of the MLP Group are private equity companies. Due to the fact that they engage in similar activities, disclosures on non-consolidated structured entities are bundled.

The activities of the entities focus on establishing, maintaining and managing a portfolio of passive investments (target companies), in particular by acquiring shareholdings. The investments primarily comprise shareholdings and are regularly financed by shareholders' equity. The business model prescribes utilisation of potential returns for equity suppliers through investments in shareholdings via an umbrella fund concept. The objective is to generate income for the equity suppliers on the basis of two different approaches: firstly through regular dividend payouts from profitable target companies, and secondly by selling participations for a profit towards the end of the shareholding. The companies generally do not have any business operations of their own or employ any staff.

The carrying amounts of non-consolidated structured entities in the MLP Group are €5,272 thsd as of December 31, 2024 (previous year: €3,824 thsd) and are disclosed in the investments within the financial assets. In the financial year 2024, MLP SE recorded an income of €65 thsd from non-consolidated structured entities (previous year: €1,516 thsd).

Based on the most recent available annual financial statements, the balance sheet total of the 22 nonconsolidated structured entities is €377,959 thsd (previous year:: €417,062 thsd).

The MLP Group's maximum risks of loss from non-consolidated structured entities corresponds to the total of its investment carrying amounts.

6. Significant discretionary decisions, estimates and changes in estimates

On occasions, the preparation of the financial statements included in IFRS-consolidated financial statements requires discretionary decisions, assumptions and estimates, which influence the level of the disclosed assets and debts, the disclosures of contingent liabilities and receivables, the income and expenses of the reporting period and the other disclosures in the consolidated financial statements.

The estimates include complex and subjective measurements, as well as assumptions, some of which are uncertain due to their very nature and can be subject to changes. The actual values may deviate from the estimates.

Information on significant discretionary decisions, assumptions and estimation uncertainties that have the greatest impact on the amounts disclosed in the consolidated financial statements when applying the accounting policies is provided in the following notes:

  • Note 5
    • Aggregation principles for structured entities
    • Definition of the group of consolidated companies
    • Inclusion of special purpose entities
  • Notes 7 and 9
    • Recognition of revenue over time or at a point in time as well as determination of the revenue level with variable transaction prices
  • Notes 7 and 23
    • Measurement of intangible assets
    • Impairment test (discounted cash flow forecasts and significant assumptions applied)
  • Notes 7, 25, 26, 27, 29, 31, 32 and 38
    • Classification and measurement of financial instruments, as well as fair value disclosures
    • Allowances for bad debts
  • Notes 7, 32 and 37
    • Provisions, in particular provisions for cancellations risks and corresponding refund claims, as well as contingent assets and liabilities
  • Notes 7 and 32
    • Measurement of pension and jubilee benefits provisions

7. Accounting policies

The application scope of IFRS 15 "Revenue from Contracts with Customers" includes mutual contracts in which the other contracting party qualifies as a client, i.e. concludes a contract with MLP regarding receipt of services or real estate objects from ordinary business activities in return for payment. The identification of a client with regard to MLP's transactions can be performed regularly and easily.

IFRS 15 standardises the following cumulative requirements of contracts with clients:

  • The contracting parties have approved the contract and are obligated to fulfil their mutual services.
  • The rights of each party and the payment conditions with regard to the goods to be delivered /services to be provided can all be identified.
  • The contract has commercial substance (in the sense of an expected impact on the company's future cash flows).
  • The company is likely to receive the payment.

Pursuant to IFRS 15, recognition of revenue is tied to fulfilment of independent benefit obligations, according to which the services are transferred to the client if the client gains control of the respective assets. Accordingly, MLP only recognises sales revenue when the client gains the "authority of disposal".

Depending on the way in which control is transferred to the client, IFRS 15 provides recognition of revenue at a point in time or over time. MLP recognises revenue from pure brokerage services (in particular acquisition commission and dynamic commission) at a point in time. Recognition of revenue over time is, in particular, performed for sustainable services (for example portfolio management, fund management). In these cases, MLP recognises revenue at the level of the fixed and performance-linked compensation for the services performed for clients in the period.

In the fields of old-age provision, non-life insurance and health insurance, commission income is generated from the brokering of insurance products. Acquisition commission is recorded at the time of contract conclusion. Commission income from unit-linked old-age provision products that is paid on a pro rata basis is recognised at a specific point in time, taking into account a probable percentage of completion.

MLP receives dynamic commissions for contract adjustments that involve extended insurance coverage. As is the case with commissions from the brokerage of the basic policy, these are recognised when the dynamic increase takes effect.

In the old-age provision and health insurance consulting field, MLP receives commission payments pertaining to the management of contracts for ongoing support of the policyholder. The service is performed over a time period, which leads to a situation in which sales revenue is to be recognised over time.

Due to the obligation to refund portions of the commission received if brokered insurance policies are terminated prematurely, the amount of commission to which brokers are entitled is tied to uncertainties. Pursuant to IFRS 15, there is a variable transaction price. MLP estimates the transaction price on the basis of statistical empirical values for the risk of termination and mortality. Revenue is recorded to the extent that it is highly probable that there will be no significant cancellations in a future period. Insofar as the insurers pay brokerage commission in advance but with a right to reversal, MLP establishes provisions for cancellation risks on the basis of empirical values and capitalises the associated refund claims against MLP consultants and branch office managers. The change in provisions is disclosed under sales revenue, while the change in the refund claim associated with this is disclosed under commission expenses.

The contractual assets, as well as the liabilities to MLP consultants and branch office managers associated with these, are disclosed at the face value of the commission still to be anticipated.

Sales revenue from wealth management contains both revenue to be recognised at a point in time and over time. Revenue recognised at a point in time includes issue surcharges/premiums, custody fees, account management fees, mutual fund brokerage fees, as well as brokerage commissions from wealth management mandates. Revenue is recognised over time, in particular, for services performed in the fields of fund management, research services and investment consulting. Alongside fixed compensation, MLP also records variable payments in these fields of business, the level of which is based on the performance achieved in the respective accounting period (performance-linked compensation). The agreed term of payment is set at an average of 30 days.

Commission income from the brokering of loans (credit brokering commission) is attributed to sales revenue from the loans and mortgages business. MLP realises brokerage commissions for loan brokerage after concluding the respective loan agreement. The same applies to real estate brokerage: where revenue is realised when signing the notarised purchase contract. When selling portfolio properties, revenue is recognised at the time when the respective real estate is handed over to the purchaser. In the case of real estate development, sales revenue is recognised based on the degree of completion and the anticipated revenue over time. Pursuant to IFRS 15, this recognition of revenue over time must always be performed when a contract is in place with the client, an asset is created as a result of the services provided by MLP that does not present MLP with any alternative opportunity for use and MLP has a right to payment (including a profit margin) on the performance completed to date, which is normally the case with property development. The progress of a real estate project is measured based on the ratio of the costs already accrued relative to the estimated total cost of construction (cost-to-cost method). This is the most reliable way to measure the performance progress, since the client's rights to payment are based on the degree of completion of the construction project.

Insofar as the cumulative performance (contract costs and, where relevant, results of the contract) exceed the advance payments in individual cases, the construction contracts are recognised on the assets side of the balance sheet under contract assets. The contract asset represents the Group's claim for counterperformance. In accordance with the German Ordinance on Estate Agents and Property Developers (MaBV), payments are typically made in parallel to performance provision based on regular invoices. If a negative balance remains following deduction of the advance payments from the disclosed contract asset, this is disclosed on the liabilities side of the balance sheet under contract liabilities as a performance obligation. At the project-based level, this is presented on a net basis.

The contract initiation costs are determined on the basis of the invoiced brokerage commission of the respective entity, insofar as they were not to be eliminated within the scope of the group accounting process. The contract initiation costs are recognised on the assets side of the balance sheet under contract assets and amortised based on the degree of completion.

Other commissions and fees are generated at the level to which consulting services are performed. They are paid in particular for consulting services to companies on setting up occupational pension provision schemes, for consulting services in connection with medical practice financing and business start-ups.

In addition to this, revenue is generated from the interest rate business. Revenue from the interest rate business also includes interest income from the investment of funds of MLP Banking AG.

Interest income is earned by MLP for the duration of the capital investment in line with the effective interest method. Commissions that are part of the effective interest return of a receivable are treated as interest income and recorded in those periods in which they are actually earned. They include commitment interest for giving loan commitments or taking over an existing liability. The company realises fees for other current handling and processing services (for example prematurity compensation) after providing these services.

Interest income from the investment of funds from other Group companies is included in the financial result and is recognised over the duration of the capital investment using the effective interest method. Dividends, however, are recognised when the entitlement to payment arises.

Currency translation

Foreign currencies are converted to the corresponding functional currency of the Group companies at the spot rate on the day of the transaction. The Group operates virtually exclusively in Germany, Luxembourg and Switzerland. Switzerland's functional currency is the Swiss franc.

Monetary assets and debts held in a foreign currency on the closing date are converted to the functional currency using the market price on the reporting date. Non-monetary assets and debts which are measured at fair value in a foreign currency are converted using the rate that is applicable at the time of determining the fair value. Non-monetary items that are measured at historical costs in a foreign currency are converted using the exchange rate in place on the day of the transaction. Currency translation differences are generally recorded as profit or loss for the period and disclosed under other expenses and other income.

Assets and debts of foreign operations, including goodwill and fair value adjustments arising from the acquisition are converted to € using the exchange rate on the closing date. The income and expenses of foreign operations are converted using the exchange rate in place at the time of the respective transaction. Any currency translation differences occurring are recognised under other expenses and other income and are disclosed under currency translation reserve in shareholders' equity, insofar as the currency translation difference is not assigned to non-controlling interests.

The relevant closing rate / average exchange rate of the Swiss Franc used for the currency translation was €0.9421 as at December 31, 2024, and €0.9338 for the year 2024.

Fair value

A range of accounting policies and Group disclosures require determination of the fair value.

For the determination of the fair value, MLP uses data observed in the market insofar as possible. If there is no active market on the closing date, the fair value is determined using recognised valuation models. Based on the input factors used in the valuation models, the fair values are classified in various tiers within the fair value hierarchy as per IFRS 13:

    1. Fair values at hierarchy level 1 are determined using prices available in active markets for the respective valuation object (quoted market prices).
    1. The fair values at hierarchy level 2 are either determined using prices on active markets for comparable but not identical valuation objects or using valuation techniques based primarily on data from observable markets.
    1. When using valuation techniques, which incorporate a key parameter that cannot be observed in the market, fair values are assigned to hierarchy level 3.

If the input factors used to determine the fair value can be assigned to various tiers in the fair value hierarchy, the entire measurement at fair value is assigned to the tier in the fair value hierarchy that corresponds to the lowest input factor of overriding importance for the measurement.

The Group recognises re-assignments between the various tiers in the fair value hierarchy at the end of the reporting period in which the respective amendment was implemented.

You can find further information on the assumptions made when determining fair values in Note 38.

Intangible assets

Intangible assets are disclosed at their acquisition or manufacturing costs minus all accumulated depreciation and amortisation charges as well as accumulated impairment losses. MLP does not apply the revaluation method.

Definite-lived intangible assets need to be estimated with regard to the depreciation methods and duration. At MLP this mainly concerns client relations and software. The respective useful life periods are defined on the basis of empirical values. Due to changed overall economic circumstances, the amortisation period may need to be adjusted, which can have significant effects on the level of amortisation expenses. Definite-lived intangible assets are usually written down on a straight-line basis over their economic life. If there are indications of impairment, an impairment test is performed. Intangible assets generated internally are only capitalised at their cost of conversion if the conditions required pursuant to IAS 38 are met. The cost of conversion includes all costs directly attributable to the development process and appropriate portions of development-related overheads.

Goodwill and other intangible assets with indefinite/ indeterminable useful lives are not amortised. The indefinite-lived intangible assets are subjected to an impairment test once a year or when there are indications of an impairment. These tests are either performed individually or at the level of a cashgenerating unit. At MLP, this in particular affects the trademarks acquired within the scope of business combinations.

Business combinations require estimates of the fair value of the assets acquired, assumed debts and contingent liabilities purchased. Property, plant and equipment are usually valued by independent experts, while marketable securities are shown at their stock market price. If intangible assets are to be valued, MLP either consults an independent external expert or calculates the fair value based on a suitable valuation method, depending on the type of asset and the complexity involved in calculating the value. Depending on the type of asset and the availability of information, various valuation techniques are applied (market-price-oriented, capital-value-oriented and cost-oriented methods). For instance, when valuing trademarks and licences, the relief-from-royalty method may be appropriate, whereby the value of intangible assets is assessed on the basis of royalties saved for trademarks and licences held by the company itself.

Insofar as cash-generating units are restructured, a re-allocation of the goodwill assigned to these units is performed on the basis of their relative value in use. Trademarks are re-allocated on the basis of sustainable revenue or relative earnings values.

MLP tests goodwill from business combinations for impairment at least once a year. For the purpose of the impairment test, goodwill is allocated to cash-generating units at the acquisition date. The impairment test compares the carrying amount of the cash-generating units with their recoverable amount. The recoverable amount is the higher amount of either the fair value less costs of sale or the value in use of the cash-generating unit. This requires an estimate of the value in use of the cash-generating unit, to which the goodwill is allocated. To this end, corporate management must estimate the likely future cash flow of the cash-generating units. The calculation of the present value of anticipated future cash flows is based on assumptions on the portfolio development, future sales volumes and expenses. The cash flow estimate is based on detailed planning periods with a planning horizon of four years. In addition to this, an appropriate discount rate must be selected to determine the present value of this cash flow. For further details, please refer to Note 23.

Property, plant and equipment

Items of property, plant and equipment are measured at cost and, if applicable, less straight-line depreciation and impairment losses. MLP does not apply the revaluation method. For further details, please refer to Note 16.

The profits or losses resulting from the disposal of assets are determined as the difference between the net disposal proceeds and the carrying amount and are recognised in the income statement as other income or other expenses in the period in which the item is derecognised. Maintenance work and small repairs in the context of upkeep expenses, are recognised directly in the income statement when incurred.

Impairment test

The carrying amount of all indefinite-lived intangible assets, intangible assets that are not yet ready for use and goodwill is tested at the end of each financial year.

The significant assumptions that are used when calculating the recoverable amount in the form of the use value are the discount rates, terminal growth rates and growth rate of earnings before tax. The discount rate is based on a risk-free basic interest rate plus a company-specific risk premium, which is derived from the systematic market risk (beta factor) and the current market risk premium. The discounted cash flow model is based on future cash flows over a default period of four years. Cash flows beyond this period are extrapolated using a sustainably assumed growth rate (terminal growth rate). This sustainable growth rate is aligned with the European Central Bank's long-term inflation target (2.0% p.a.)." Since it is not assumed that price increases can be fully passed on, a discount is applied to the European Central Bank's long-term inflation target to determine the sustainable growth rate. For further details, please refer to Note 23.

Inventories

Inventories comprise developed and undeveloped land that is held for resale. With the exception of undeveloped land, inventories are recognised in the balance sheet at the lower value of acquisition/manufacturing costs and net realisable value. Undeveloped land is recognised at the lower value of either acquisition costs or net realisable value.

The capital borrowed for four project developments of the Deutschland.Immobilien Group is secured by land charges. As of the balance sheet date, registered land charges of around €23 million are in place (previous year: around €21 million). As of the balance sheet date, MLP considers a future utilisation to be unlikely.

Leasing

The Group rents office buildings and vehicles in particular. The rental agreements for office buildings are typically concluded for up to ten years, while the rental agreements for vehicles have an average term of between three and four years. To maintain operational flexibility with regard to the portfolio of agreements, MLP incorporates extension and termination options as a contractual strategy element.

For lessees, IFRS 16 dictates a uniform approach for the accounting of leases, based on which right-ofuse assets and liabilities for payment obligations are to be recognised for all leases in the balance sheet. For lease objects of low value and for short-term leases (fewer than 12 months), the simplified application rules are applied. The option to capitalise non-lease components (service) as per IFRS 16.15 is not applied. Non-leasing components are not taken into account in the recognised right-of-use asset.

Lease payments are discounted at the underlying implicit interest rate, provided it can be readily determined. Otherwise – and this is generally the case in the Group – discounting is performed at the group-wide uniform lessee's incremental borrowing rate of interest on the basis of Group-wide uniform maturity bands, i.e. the interest rate that the respective lessee would have to pay if he needed to borrow funds in order to acquire a comparable value for a comparable term with comparable security under comparable conditions. For further details, please refer to Note 20.

The Group is exposed to potential future increases in variable lease payments that can result from a change to an index or an interest rate. These potential changes in leasing rates are not taken into account in the leasing liability until they come into effect. As soon as a change to an index or interest rate has an effect on the leasing rates, the leasing liability is adjusted to the right of use. Leasing rates are split into principal and interest payments.

Rights of use are amortised on a straight-line basis over the shorter of the two time periods of the term of use and the term of the underlying lease agreement. If exercising an option to buy is reasonably certain from the perspective of the Group, the underlying asset is amortised over either the extended term of the basic leasing agreement or the asset's useful life, whichever is shorter.

MLP sublets a small number of properties in the financial year. For further details, please refer to Note 24.

Investments accounted for using the equity method

The acquisition costs are adjusted on an annual basis by the corresponding changes in equity of the associated company. The change in pro rata shareholders' equity is performed either according to MLP's capital share or on a disquotal basis. Unrealised gains and losses from transactions with associates are eliminated based on the percentage of shares held. The changes of the pro rata shareholders' equity are shown in the company's income statement under earnings from investments accounted for using the equity method. Dividends received reduce the carrying amount. For further details, please refer to Note 19.

Financial instruments

Financial assets are initially measured at fair value. The MLP Group applies the date of settlement for determining the fair value.

Under IFRS 9, financial assets are classified in three categories in accordance with a uniform model:

    1. financial assets measured at amortised cost (AC),
    1. financial assets measured at fair value through other comprehensive income (FVOCI) and
    1. financial assets measured at fair value through profit or loss (FVPL).

Financial assets whose cash flows exclusively comprise interest and principal payments are classified based on the business model. The assessment as to whether a financial asset comprises solely interest and principal payments is based on the commercial substance of the cash flows and not on the contractual designations. All contractual agreements, which increase the risk or volatility in the contractual cash flows, are not consistent with an elementary credit agreement and therefore represent a violation of the cash flow criterion. However, those contractual conditions that either have a de minimis effect on contractual cash flows or are non-genuine can be disregarded for the assessment of the cash flow criterion.

MLP purchases financial assets in the "Hold" business model exclusively with the objective of collecting contractual cash flows. This means that divestments prior to the end of the term will generally be excluded. Divestments performed due to deterioration of the credit quality of individual assets, divestments performed near to the end of the term, as well as rare/irregular divestments or divestments of insignificant levels would not present any risk for the assignment to the "Hold" business model.

MLP uses the "Hold and Sell" business model to purchase financial assets, albeit in a limited scope. With this business model, the objective is both to collect contractual cash flows and to make a profit through divestment. The asset assigned to this business model does not fulfil the cash flow condition, i.e. these cash flows do not consist exclusively of interest and principal payments. In the MLP Group, this relates in particular to shares from investment funds from the processing of client orders, shares and also profit participation rights, which are measured at fair value through profit or loss (FVPL).

On initial recognition, the Group may irrevocably elect to classify its equity instruments as fair value through other comprehensive income (FVOCI) if they meet the definition of equity as per IAS 32 Financial Instruments and are not held for trading. The classification is made individually for each instrument. Gains and losses on these financial assets are never reclassified to the income statement. Dividends are recognised in the income statement as other income when the legal right to payment exists, unless the dividends recover part of the acquisition cost of the financial asset. In this case, gains are recognised in other comprehensive income. Equity instruments measured at fair value through other comprehensive income are not tested for impairment. MLP applies this option for measurement at fair value through other comprehensive income at the individual case level.

IFRS 9.4.1.5 allows the optional measurement of assets at fair value to avoid or significantly reduce an accounting mismatch. MLP did not make any use of the Fair Value Option (FVO) as of December 31, 2024 as was the case on the previous year's closing date.

The impairment model under IFRS 9 includes expectations regarding the future and is based on the anticipated credit losses. The impairment model under IFRS 9 consists of three stages and applies to all financial assets (debt instruments) that are measured either at amortised costs or at fair value through other comprehensive income, with the exception of equity instruments measured at fair value through other comprehensive income:

Stage 1: Contains all contracts with no significant increase in the credit risk as well as such contracts as remain in Stage 1 due to the use of the Low Credit Risk Exemption. Presence of an investment-grade rating is assumed here. The impairment is determined on the basis of the anticipated credit loss from default events over the next 12 months.

Stage 2: Contains financial assets that have experienced a significant rise in credit risk since their initial recognition, but whose creditworthiness has not yet been compromised. The impairment is determined on the basis of the anticipated credit loss throughout the entire time remaining to maturity.

MLP considers the following conditions/characteristics to represent a significant rise in credit risk:

  • More than 30 days in arrears
  • Deterioration of the rating by at least two grades compared to the 12-month-forward rating and transfer to non-investment grade
  • Transferral to intensified loan management

Stage 3: Contains financial assets that display objective indications of credit impairments or have default status. The anticipated credit losses are recorded as impairments throughout the entire term of the financial assets. Objective indications that a financial asset is compromised in its value include arrears of more than 90 days, as well as further qualitative information that indicates significant financial difficulties on the part of the debtor. If a client is more than 90 days in arrears, this client is assigned default status. Once the default status has been removed, the asset is only transferred out of Stage 3 after a threemonth probation period; following a crisis-related restructuring, a transfer out of Stage 3 can only occur after an extended probation period of at least 12 months.

MLP uses the simplified method (loss rate method) for other receivables and assets. These do not have any significant financing component pursuant to IFRS 15. Based on this, these receivables are already assigned to Stage 2 during initial recognition and no estimate is performed regarding a significant increase of the credit risk. If the assets display any objective indications of credit impairments, they are transferred to Stage 3.

MLP applies various models for measurement of the anticipated credit losses, depending on the asset in question and the availability of data:

• Determination using the credit risk parameter method:

The Expected Credit Loss (ECL) is determined through multiplicative linking of the Exposure at Default (EaD), Probability of Default (PD) and Loss Given Default (LGD) credit risk parameters. The parameters are determined in such a way that they reflect relevant events in the past, the current situation, as well as information regarding the future. In principle this can be performed using an economic model that contains all of the information gathered or by adjusting existing parameters so that the current economic environment and forecasts with regard to its future development are taken into account. This information encompasses macroeconomic factors (primarily GDP performance, unemployment rate, interest rate and inflation rate) and forecasts regarding future economic framework conditions in the core market of Germany. The forecast horizon used to determine the macroeconomic factors included is 12, 36 or 60 months, depending on the scenario used. For 2025, the MLP Group anticipates a slight increase in the gross domestic product of 0.1%, a slight increase in the unemployment rate from 5.6% to 5.9 %, a slight reduction in the inflation rate from 2.5% to 2.4% and a decline in the yield of 10-year German government bonds from 2.3 to 2.17%. These expectations are included with the same weighting in the determination of the shift factor applied in the credit risk parameter method.

In the view of the European Central Bank, the European banking sector is increasingly confronted with novel risks, including geopolitical risks, inflation risks, environmental risks, risks related to energy supply, and risks in supply chains. The increased uncertainties associated with the new U.S. administration, in addition to the various crises and conflict hotspots (Ukraine, Gaza/Israel, etc.), have resulted in an even greater level of uncertainty compared to the previous year. The effects on the MLP Banking AG's loan loss provisions are still not precisely quantifiable on the basis of current and historical data. On the one hand, this is due to the fact that there are no historical empirical values on the influence of such extraordinary macroeconomic events and new types of risks on the MLP Group's client loan portfolio, and on the other hand there are no current or forward-looking indications of increased default risks for individual client receivables at the time the consolidated financial statements were prepared. In order to account for this latent risk of increased default risks in the course of the macroeconomic special influences, a so-called post-model adjustment in the amount of €2,000 thsd (previous year: €1,009 thsd) was recognised in accordance IFRS 9.5.5 in conjunction with IFRS 7.35G and IAS 1.129. The calculation was made using probability-weighted stress scenarios derived on the basis of expert estimates. As part of the scenario analysis, the impact on the cumulative expected loss of the client portfolio was analysed for the event of a rating downgrade of the underlying individual loan exposures by one or two rating levels. The post-model adjustment is the difference between the expected loss on the client loan portfolio calculated in the standard scenario and the accumulated, weighted loss with scenario-based assessments, taking into account the respective expected likelihood of occurrence.

To secure approximate consistency between the risk measurement and the recording of credit losses in the balance sheet, the PD models currently used are adequately extended. In the first step, through-the-cycle PDs are derived from the existing supervisory models. Migration matrices are used for this, as a result of which future changes in creditworthiness are anticipated at portfolio level over the term. Using rating classes, the migration matrices are based on observable loan loss histories of the portfolios in question. In the second step, the through-the-cycle PDs are adjusted using a shift factor method in such a way that the current economic environment, as well as the future-oriented factors required by IFRS 9 are taken into account. In this approach, the through-the-cycle PDs (multiyear PDs) derived from rating data are transformed into point-in-time PDs (forward-looking PDs) using a multiplicative factor, the shift factor. Inclusion of a one-year, three-year and five-year outlook ensures that short-term developments are not overweighted.

In order to analyse the sensitivity of the model to possible future developments in macroeconomic factors (essentially the development of gross domestic product, as well as the unemployment rate, the interest rate level and the inflation rate), the effects were examined in a potential stress scenario. A 100% deterioration in each of the macroeconomic factors used in the model was assumed. This would result in only minor impacts of around €0.6 million on the expected credit loss of the MLP Group's loan portfolio.

• Loss rate method:

Under certain conditions, IFRS 9 allows use of a loss rate method that is based on the default rates for determining anticipated losses. Here, historical credit default rates are determined for defined portfolios with the same risk characteristics. Criteria for portfolio creation are contractual terms of the same design for assets, comparable counterparty characteristics, as well as similar credit ratings of the assets in the portfolio. The anticipated losses are estimated on the basis of historical losses. In contrast to the first process described, there is no explicit subdivision into the components of probability of default (PD) and loss given default (LGD). The determination period of the anticipated losses is the entire term remaining to maturity of the respective asset. When determining the loss rates, forward-looking information is considered by weighting the historic loss rates used.

• Expert-based ECL determination:

The expert-based ECL determination of the Level 3 impairments is performed individually using a scenario analysis, to which the expert adds the circumstances of the respective individual case. This ensures that both general empirical data and specific characteristics (including the expected development of macroeconomic factors - essentially the development of gross domestic product and the unemployment rate, the interest rate level and the inflation rate) are continuously incorporated into the calculation.

In the event of substantial contract adjustments, the original asset is derecognised and a new asset recognised (modification).

Derecognition of a financial instrument (write-off) is performed if an appropriate estimate indicates that a financial asset cannot be fully or partially realised, for example following completion of insolvency proceedings or following judicial decisions.

"Purchased or originated credit impaired financial assets" (POCI) are financial assets that fulfil the "creditimpaired" definition on receipt. This is the case when an allocation to a default class is performed. Assets that are classified as POCI are not part of MLP's business model.

Subsequent to their initial recognition, financial liabilities are to be recognised at their amortised costs using the effective interest method. Profits or losses are recognised in the income statement on derecognition and through the amortisation process. Subsequent to their initial recognition, financial liabilities at fair value through profit or loss are measured at their fair value. Profits or losses from the change in fair value are recognised in the income statement.

The tax liabilities are due to taxes on the income and profit of the individual companies based on the corresponding national tax regime. In principle, the income tax assessment is carried out at the level of the individual item, taking into account any potential knock-on effects. If the approval of the tax treatment is probable, current and deferred taxes are to be recognised on this basis. If, on the other hand, approval is not probable, the amount most probable to meet tax approval will generally be used, unless the expected value for a specific scenario leads to a more meaningful result. It is always assumed that the tax authorities have complete knowledge of the circumstances. Finally, the assumptions and decisions made are reviewed on each reporting date and adjusted if necessary on the basis of new information.

Pension provisions

Old-age provision in the Group is performed on the basis of the defined-benefit and defined contribution old-age provision plans.

In the defined contribution plans, MLP pays premiums to statutory or private pension insurance institutions based on legal or contractual provisions or on a voluntary basis. After payment of the premiums, MLP has no further benefit obligations.

Commitments to pay premiums into defined contribution schemes are recognised as expenses as soon as the related service has been rendered. Pre-paid premiums are recognised as assets insofar as a right to reimbursement or reduction of future payments arises.

In accordance with IAS 19 "Employee Benefits", the provisions for pension obligations from defined benefit plans are measured using the projected-unit credit method.

The benefit obligations are partly covered by reinsurance. Virtually all reinsurance policies fulfil the conditions of pension scheme assets. For this reason the claims from reinsurance policies are netted against corresponding pension provisions in the balance sheet as per IAS 19.

The Group's net obligation with regard to defined benefit plans is calculated separately for each plan by estimating future benefits that the employees have earned in the current period and in earlier periods. This amount is discounted and the fair value of any pension scheme assets subtracted from this.

For the measurement of pension obligations, MLP uses actuarial calculations to estimate future events for the calculation of expenses and income, obligations and entitlements in connection with these plans. These calculations are based on assumptions with regard to the discount rate, mortality and future salary, as well as pension increases. The interest rate used to discount post-employment benefit obligations is derived from the interest rates of senior, fixed-rate corporate bonds.

Revaluations of net liabilities from defined benefit plans are recognised directly under other comprehensive income. The revaluation encompasses actuarial gains and losses, income from pension scheme assets (without interest) and the effects of any upper asset limit (without interest). The Group calculates net interest expenses (income) on net liabilities (assets) from defined benefit plans for the reporting period through application of the discount rate used for valuation of the defined benefit obligations at the start of the annual reporting period. This discount rate is applied to net liabilities (assets) from defined benefit plans at this time. Any changes to net liabilities (assets) from defined benefit plans that occur as a result of premium and benefit payments over the course of the reporting period are taken into account. Net interest expenses and other expenses for defined benefit plans are recognised in the income statement.

Further details of pension provisions can be found in Note 32.

Provisions for jubilee benefits

Various companies in the MLP Group generally grant jubilee benefits to active employees every five years from the date of employment. The measurement as of 31 December 2024 is performed using the projected unit credit method stipulated pursuant to IAS 19.

For the measurement of jubilee benefit obligations, MLP uses actuarial calculations. These calculations are based on assumptions with regard to the discount rate, mortality and staff turnover rate.

Please refer to Note 32 for a more detailed explanation.

Provisions for lifetime working accounts

MLP offers its employees the opportunity to take compensation components that have not been paid out (for example overtime worked but not paid or holiday days not taken) and assign these to lifetime working accounts, which can then be used to shorten the total duration of their working life, to take a sabbatical or similar. When certain conditions are met, MLP also grants a subsidy on the amounts paid in, although in some cases only when the credit balance is actually redeemed. With the exception of forfeitable subsidies, the money is invested using a trustee model with insolvency protection. Changes in the present value of the liabilities are recognised in the income statement in the financial year. The provision stated in the balance sheet corresponds to the balance of the present value of the liabilities and the insolvencyprotected portion of plan assets.

Other provisions

In accordance with IAS 37 "Provisions, contingent liabilities and contingent assets", other provisions are recognised when the Group has a present obligation (legal or constructive) resulting from a past event, settlement is expected to result in an outflow of resources and the obligation's amount can be estimated reliably. They represent uncertain obligations that are measured at the amount that represents the best possible estimate of the expenditure required to fulfil the obligations.

Insofar as the level of the provision can only be determined within a range, the most likely value (expected value) is used. If the probability of occurrence is equal, the weighted average is taken.

Provisions with a time of more than one year remaining to maturity are discounted at market interest rates that correspond to the risk and the time remaining to maturity.

Reversals of provisions are always recognised under other income.

If the Group expects to receive a reimbursement of at least part of a practically certain provision from an identifiable third party (e.g. in case of an approved insurance policy), MLP recognises the reimbursement as a separate asset. The expenditure required to set up the provision is recognised in the income statement after deduction of the reimbursement. Accordingly, the reversal of provisions is also shown net in the income statement.

For the liability arising due to the premature loss of brokered insurance policies whereby commission that has been earned need to be refunded in part, MLP sets up provisions for cancellation risks. MLP estimates the cancellation rate by product group and the period of the underlying policy that has already run on the basis of empirical values. The period in which MLP is obliged to refund portions of the commissions due to the premature loss of a policy is determined either by the statutory provisions of the German Insurance Act or the distribution agreements that have been concluded with the product providers.

If MLP has an onerous contract, the current contractual obligation is recognised and measured as a provision. An onerous contract is a contract in which the unavoidable costs (i.e. the costs that MLP cannot avoid because the contract is in place) for fulfilment of the contractual obligations are higher than the anticipated economic benefit. However, before a separate provision is recorded for an onerous contract, MLP records the impairment losses for assets that are associated with the contract.

Share-based payments

Share-based payments in line with IFRS 2 "Share-Based Payment" comprise pay systems paid for in cash and using equity instruments.

The proportion of the fair value of share-based payments settled in cash attributable to services provided up to the valuation date is recognised as commission expenses and at the same time as a provision.

Share-based payments also include those made through equity instruments (participation programme for MLP consultants and office managers). The participation programme applies to the calendar year 2024, as well as to MLP consultants and MLP branch office managers whose contracts remained unterminated and in place on December 31, 2024. The compensation to be made in the form of MLP SE shares is determined on the basis of the annual commission of the MLP consultant/branch office manager, applying various performance parameters, and is recorded in the 2024 consolidated financial statements as an expense with a corresponding increase in shareholders' equity.

You can find further details on the share-based payments in Note 36.

8. Reportable business segments

The division of MLP into business segments follows the structure in place for internal reporting. The MLP Group is subdivided into the following reportable business segments:

  • Financial Consulting
  • Banking
  • FERI
  • DOMCURA
  • Deutschland.Immobilien
  • Industrial Broker
  • Holding

Due to the similarity of the products and services offered, as well as reliance on the same client base and identical sales channels, MLP pooled "financial consulting" and "occupational pension provision" under the reportable "Financial Consulting" business segment in accordance with IFRS 8.12. The object of the reportable Financial Consulting business segment is the provision of consulting services for academics and other discerning clients, particularly with regard to insurance, investments, occupational pension provision and the brokering of contracts in connection with these financial services. In 2024, the segment is made up of MLP Finanzberatung SE, ZSH GmbH Finanzdienstleistungen, MLPdialog GmbH, MLP Startup GmbH, the associate MLP Hyp GmbH and Uniwunder GmbH, which was included in the consolidated financial statements for the first time in the financial year 2024.

The object of the reportable Banking business segment is to advise on and operate the banking business, including the securities custody business, the commission business, investment consulting and investment brokerage as well as the brokerage of insurance policies that are related to these activities. MLP Banking AG is included in this segment.

The business operations of the reportable FERI business segment cover wealth and investment consulting. This segment comprises FERI AG, FERI (Switzerland) AG and FERI (Luxembourg) S.A.

The business operations of the reportable DOMCURA business segment encompass the design, development and implementation of comprehensive coverage concepts in the field of non-life insurance as a so-called underwriting agency. The segment also engages in brokerage activities. In 2024 this segment is made up of DOMCURA Aktiengesellschaft and NORDVERS GmbH.

The reportable Deutschland.Immobilien business segment focuses on the brokerage of real estate assets and the development and sale of real estate projects. This segment comprises DI Deutschland.Immobilien AG, Vertrieb Deutschland.Immobilien GmbH, Projekte Deutschland.Immobilien GmbH, IT Deutschland.Immobilien GmbH and Projekte 2 Deutschland.Immobilien GmbH accounted for using the equity method. In addition, the segment also includes all consolidated project enterprises.

The object of the new reportable Industrial Broker business segment is to provide consulting services and insurances for industrial and commercial clients as well as the brokerage of insurance policies. This segment comprises RVM GmbH, RVM Versicherungsmakler GmbH, RISConsult GmbH and Dr. Schmitt GmbH Würzburg.

In 2024, the Holding segment comprises essential internal services and activities of MLP SE.

Intrasegment supplies and services are settled in principle at normal market prices. In the case of intragroup allocations, an appropriate general overhead surcharge is levied on the direct costs actually incurred.

The management makes decisions on the allocation of resources and determines segment performance on the basis of the income statement for that segment. MLP employs the accounting policies applied in the consolidated financial statements to determine financial information on the segments.

The Financial Consulting, Banking, DOMCURA, Deutschland.Immobilien and Industrial Broker segments perform their economic activities predominantly in Germany. The FERI segment conducts its business activities above all in Germany, Luxembourg and in Switzerland.

In the business segments of Financial Consulting and FERI at least 10% of aggregated sales revenue of €233,793 thsd was generated with one product partner in the financial year. In the previous year, sales revenue of €189,830 thsd was generated in the Financial Consulting segment and with one product partner in the FERI segment.

Information regarding reportable business segments

Financial
Consulting		 Banking FERI DOMCURA Deutschland.Immobilien Industrial Broker Holding Consolidation Total
All figures in €'000 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Sales revenue 405,453 386,895 217,157 174,490 261,291 206,754 126,722 125,648 42,311 51,596 36,466 33,572 - - -51,866 -37,830 1,037,534 941,125
of which total inter-segment
revenue 40,435 29,027 7,883 8,171 - - - - 2,686 611 - - - - -51,003 -37,810 - -
Other revenue 34,504 35,878 6,798 6,531 3,032 5,858 4,018 3,068 5,350 5,326 1,935 1,364 18,750 16,174 -45,248 -41,824 29,139 32,373
of which total inter-segment
revenue		 22,533 20,708 5,021 4,868 - - 2 2 - 1,328 - - 17,693 14,918 -45,248 -41,824 - -
Total revenue 439,957 422,772 223,955 181,021 264,323 212,612 130,741 128,716 47,661 56,921 38,401 34,935 18,750 16,174 -97,114 -79,654 1,066,673 973,498
Inventory changes - - - - - - - - -4,295 -11,262 - - - - - - -4,295 -11,262
-
Commission expenses 197,850 -179,989 -62,529 -52,907 -150,970 -128,356 -82,507 -82,100 -27,191 -15,755 -971 -1,101 - - 47,101 33,506 -474,917 -426,701
Real estate development
expenses		 - - - - - - - - -5,225 -19,437 - - - - 129 760 -5,096 -18,676
Interest expenses - - -34,448 -18,450 - - - - - - - - - - 4,227 2,117 -30,220 -16,333
Remeasurement gains or
losses/
Loan loss provisions -702 -240 -6,747 -2,298 1,483 -246 93 -163 -4,878 810 - - 103 -103 2,661 1,203 -7,988 -1,037
Personnel expenses -92,870 -88,732 -17,828 -16,289 -55,522 -43,879 -23,127 -20,936 -8,511 -9,361 -21,796 -20,378 -13,378 -9,503 - - -233,031 -209,078
Depreciation and
impairments		 -14,568 -17,271 -474 -581 -3,605 -3,649 -4,844 -3,093 -1,211 -5,715 -3,045 -3,412 -2,297 -2,099 - - -30,044 -35,820
Other expenses -
111,414		 -110,732 -53,496 -48,907 -19,553 -16,852 -15,297 -13,649 -8,027 -11,476 -6,153 -8,654 -20,641 -16,371 47,047 42,328 -187,534 -184,312
Earnings from investments
accounted for using the
equity method		 1,496 454 - - - - - - -51 -8 - - - - - - 1,444 446
Segment earnings before
interest and taxes (EBIT)		 24,048 26,263 48,433 41,588 36,156 19,631 5,058 8,776 -11,727 -15,282 6,436 1,390 -17,463 -11,902 4,050 261 94,991 70,724
Other interest and similar
income		 3,339 3,306 116 131 1,612 1,308 1,358 736 1,732 2,701 572 220 4,941 5,445 -7,392 -5,423 6,279 8,423
Other interest and similar
expenses -3,508 -3,750 -515 -165 -820 -1,070 -26 -17 -6,844 -8,877 -1,048 -1,121 -1,142 -1,065 5,989 6,432 -7,913 -9,633
Remeasurement gains or
losses (non-operating)		 - -0 - - 305 -589 - - 9,828 - - - -758 50 -3,178 - 6,197 -539
Net financial result -169 -445 -399 -34 1,097 -351 1,333 718 4,717 -6,176 -476 -901 3,041 4,431 -4,582 1,010 4,563 -1,749
Earnings before taxes
(EBT) 23,880 25,818 48,034 41,554 37,254 19,280 6,391 9,494 -7,010 -21,458 5,960 489 -14,422 -7,471 -532 1,270 99,554 68,976
Income taxes -30,276 -24,853
Net profit
of which attributable to:		 69,278 44,123
owners of the parent
company 69,265 48,582
non-controlling interests 13 -4,459
Investments accounted for
using the equity method 3,134 2,093 - - - - - - 58 109 - - - - - - 3,192 2,202
Major non-cash expenses:
Impairment/
reversal of impairments on
receivables		 -702 -240 -3,841 -2,374 33 145 93 -163 -4,959 810 - - 103 -103 -518 1,203 -9,791 -721
Increase/- decrease of
provisions/
accrued liabilities 70,176 58,355 5,675 3,396 24,950 17,750 5,859 4,315 961 1,774 1,656 312 5,637 4,539 - - 114,914 90,442

9. Sales revenue

All figures in €'000 2024 2023
Wealth management 380,077 308,156
Old-age provision 234,203 233,606
Non-life insurance 206,432 200,952
Health insurance 63,778 60,198
Real estate brokerage 34,972 20,221
Loans and mortgages 14,871 14,380
Other commissions and fees 8,155 7,001
Total commission income 942,488 844,514
Revenue from real estate development 4,667 30,902
Interest income 90,380 65,709
Total 1,037,534 941,125

Revenue recognised over time of €438,103 thsd (previous year: €386,873 thsd) was generated from the old-age provision business in the Financial Consulting segment, from the health insurance business in the Financial Consulting and DOMCURA segments, from the wealth management business in the Financial Consulting, Banking and FERI segments, as well as from the real estate brokerage business in the Deutschland.Immobilien segment.

No negative interest from lending and money market transactions (previous year: €200 thsd) is included in interest income. The decline is due in particular to the expiry of fixed-term deposits with negative interest rates.

10. Other revenue

All figures in €'000 2024 2023
Cost transfer to MLP consultants and branch office managers 4,982 4,629
Income from the reversal of provisions 2,532 2,431
Income from the reversal of deferred obligations 2,196 3,059
Offset remuneration in kind 1,807 1,779
Income from investments 1,228 3,001
Rent 564 537
Income from currency translation 224 72
Compensation of management 50 267
Income from the disposal of fixed assets 47 24
Income from the sales tax (VAT) adjustment 44 0
Sundry other income 15,464 16,574
Total 29,139 32,373

Cost transfers to MLP consultants and branch office managers essentially comprise income from cost transfers of insurance premiums, services and material costs.

For information on income from the reversal of provisions, please refer to Note 32. Income from the reversal of provisions for economic loss, which is offset by expenses from the derecognition of liability insurance refund claims, is disclosed net under income from the reversal of provisions. Income from the reversal of provisions does not contain any income from provisions for the lending business or provisions for anticipated losses from the lending business. These are part of the loan loss provisions. We refer to Note 15 here.

Income from the reversal of deferred obligations essentially results from the reversal of obligations for outstanding invoices.

Offset remuneration in kind results from non-cash benefits granted to employees.

Income from investments results from dividends from non-consolidated subsidiaries.

Rental income results from the subletting of real estate.

Management compensations include income from management activities in private equity companies.

Among other things, sundry other income includes advertising subsidies, income from the provision of IT services, income from cost reimbursement claims and income from the deconsolidation of Sechste Projekte Deutschland.Immobilien GmbH, Seniorenzentrum Albstadt GmbH and Seniorenwohnpark Ehingen GmbH with a total value of €3,818 thsd.

11. Inventory changes

Inventory changes result from construction work and divestment of residential units in the DI Group. In addition to this, impairment charges on inventories of €1,353 thsd (previous year: €2,282 thsd) were recognised in the changes in inventories in the financial year. Please refer to Note 28 for information on the composition of inventories.

12. Commission expenses

Commission expenses mainly consist of the commission payments and other compensation components for the self-employed MLP consultants as well as the compensation for sales partners at the remaining subsidiaries.

13. Real estate development expenses

Real estate development expenses for the period from January 1 to June 31, 2024 declined from -€18,676 thsd to -€5,096 thsd compared to the same period of the previous year. Essentially they include expenses incurred in connection with the building activities of the DI project enterprises.

14. Interest expenses

All figures in €'000 2024 2023
Interest and similar expenses
Financial instruments measured at amortised cost 30,220 16,333
Liabilities due to clients in the banking business 29,251 15,804
Liabilities due to financial institutions in the banking business 969 528
Total 30,220 16,333

Due to higher interest rates, interest expenses resulting from liabilities due on demand of €20,265 thsd (previous year: €13,844 thsd) and interest expenses from liabilities with agreed terms of €9,955 thsd (previous year: €1,796 thsd) were accrued in the financial year.

15. Remeasurement gains or losses/loan loss provisions

All figures in €'000 2024 2023
Provisions for risks from potential bad debts -9,636 -608
Provisions for risks from the lending business 5 -113
Remeasurement gains or losses 1,643 -315
Total -7,988 -1,037

As of December 31, 2024, loan loss provisions of -€9,631 thsd (previous year: -€721 thsd) were recognised in accordance with IFRS 9. The figure is made up of expenses for the recognition of allowances for bad debts of -€9,636 thsd (previous year: -€608 thsd), and income from the adjustment of provisions for anticipated losses from the lending business of €5 thsd (previous year: -€113 thsd).

Write-downs of financial instruments measured at fair value through profit or loss result in remeasurement gains of €1,643 thsd (previous year: -€315 thsd).

See Notes 25, 26, 29 and 32 for detailed explanations on the development of loan loss provisions. See Note 27 for details on remeasurement gains or losses from financial instruments measured at fair value through profit or loss.

16. Personnel expenses

All figures in €'000 2024 2023
Salaries and wages 201,350 180,048
Social security contributions 27,581 25,101
Expenses for old-age provisions and benefits 4,100 3,929
Total 233,031 209,078

Personnel expenses essentially include salaries and wages, compensation and other payments to employees. The social security contributions include the statutory contributions to be borne by the company in the form of social security insurance premiums. Expenses for old-age provisions and benefits mainly include the employer's shares of supplementary occupational pension provision.

17. Depreciation and impairments

All figures in €'000 2024 2023
Depreciation 30,044 31,236
of which property, plant and equipment 22,314 20,624
of which intangible assets 7,730 10,612
Impairments - 4,585
of which property, plant and equipment - -
of which intangible assets - 4,585
Total 30,044 35,820

In the financial year 2024, the depreciation of property, plant and equipment include amortisation of rights of use as per IFRS 16 of €13,565 thsd (previous year: €13,282 thsd), some €11,592 thsd of which (previous year: €11,447 thsd) can be attributed to amortisation of rights of use for real estate, €1,876 thsd (previous year: €1,738 thsd) can be attributed to amortisation of rights of use for vehicles and €97 thsd (previous year: €97 thsd) can be attributed to the depreciation of other operating and office equipment, in particular IT.

In the previous year, the impairment recorded on intangible assets was primarily attributable to the goodwill of the cash-generating unit DI Vertrieb within the reportable Deutschland.Immobilien segment.

18. Other expenses

All figures in €'000 2024 2023
IT operations 52,201 49,409
Consultancy 28,620 28,064
Administration operations 13,760 13,797
Other external services 13,488 15,949
External services – banking business 11,974 11,394
Representation and advertising 11,831 9,238
Premiums and fees 6,220 6,327
Maintenance 6,160 5,828
Other employee-related expenses 4,636 4,448
Expenses for MLP consultants and branch office managers 4,519 4,068
Training and further education 4,364 4,226
Insurance 4,355 4,312
Travel expenses 3,561 3,731
Entertainment 3,303 3,446
Goodwill and damages 3,228 625
Rental and leasing 2,493 1,984
Audit 1,894 2,338
Supervisory Board compensation 1,074 1,090
Sundry other expenses 9,853 14,038
Total 187,534 184,312

IT operation expenses are mainly attributable to IT services and data centre services that have been outsourced to external service providers. These include expenses for low-value leases of €252 thsd (previous year: €211 thsd) that do not require capitalisation according to IFRS 16.

The consulting expenses are made up of IT consulting fees as well as tax advice, legal advice and general advice fees.

Expenses for administration operations include building operation costs, office costs and communication costs.

Other external services essentially comprise expenses for the online acquisition of potential new clients, client support services, property management expenses for the Group HQ and expenses for HR services.

The item "External services - banking business" mainly contains securities settlement and transaction costs in connection with the MLP credit card.

Expenses for representation and advertising include costs incurred due to media presence and client information activities as well as sales and trade fair costs.

Premiums and fees essentially comprise premiums paid to the compensation scheme and deposit protection of German banks, premiums and fees paid to the European Central Bank, premiums and fees paid to the Federal Financial Supervisory Authority, as well as postage and freight costs.

The expenses for MLP consultants and branch office managers essentially comprise the expenses in connection with sales campaigns and recruiting measures.

Rental and lease expenses comprise expenses that do not require capitalisation according to IFRS 16. This includes expenses for short-term leases of €242 thsd (previous year: €287 thsd) and expenses for low-value leases of €632 thsd (previous year: €474 thsd). In the financial year, expenses for variable lease payments, which were not included in the measurement of leasing liabilities (for example payments at the end of a vehicle leasing agreement) amounted to €38 thsd (previous year: €51 thsd).

Among other things, sundry other expenses include expenses from the deconsolidation of Zehnte Projekte 2 Deutschland.Immobilien GmbH of €604 thsd, expenses from impairment losses on shares in non-consolidated subsidiaries and expenses for other taxes. In addition, they include donations and vehicle costs.

19. Earnings from investments accounted for using the equity method

Earnings from investments accounted for using the equity method were €1,444 thsd in the financial year (previous year: €446 thsd) and comprise the share of earnings in the associate MLP Hyp GmbH of €1,495 thsd (previous year: €454 thsd) and in the joint venture Projekte 2 Deutschland.Immobilien GmbH of -€51 thsd (previous year: -€8 thsd).

Investments accounted for using the equity method relate to the 49.8% stake in MLP Hyp GmbH, Wiesloch and the 50% stake in Projekte 2 Deutschland.Immobilien GmbH, Hanover. MLP Hyp GmbH operates the joint mortgage lending business of MLP Finanzberatung SE, Wiesloch, and Interhyp AG, Munich. Projekte 2 Deutschland.Immobilien GmbH is an intermediate holding company within the DI Group. It holds shares in project enterprises in which real estate developments are executed.

The shares of MLP Hyp developed as follows:

All figures in €'000 2024 2023
Share as of Jan. 1 2,093 4,571
Dividend payouts -454 -2,933
Pro rata profit after tax 1,495 454
Share as of Dec. 31 3,134 2,093

The following table contains summarised financial information on MLP Hyp GmbH:

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Non-current assets 103 123
Current assets 8,665 5,653
Non-current liabilities - -
Current liabilities 3,512 2,083
Net assets (100%) 5,256 3,694
of which MLP's share in net assets 2,617 1,839
Incidental acquisition costs 151 151
Dividend payout -7,338 -7,229
Cumulative disproportionate profit 7,704 7,332
Carrying amount of the investment 3,134 2,093
Sales revenue 16,724 12,966
Total comprehensive income (100%) 2,256 694
MLP's share in total comprehensive income 1,495 454

The shares of Projekte 2 Deutschland.Immobilien GmbH developed as follows:

All figures in €'000 2024 2023
Share as of Jan. 1 109 118
Dividend payouts - -
Pro rata profit after tax -51 -8
Share as of Dec. 31 58 109

The table below contains summarised financial information on Projekte 2 Deutschland.Immobilien GmbH:

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Non-current assets 38 38
Current assets 77 192
Non-current liabilities - -
Current liabilities - 12
Net assets (100%) 116 218
of which MLP's share in net assets 58 109
Incidental acquisition costs - -
Dividend payout
Carrying amount of the investment 58 109
Sales revenue - -
Total comprehensive income (100%) -103 -16
MLP's share in total comprehensive income -51 -8

20. Financial result

All figures in €'000 2024 2023
Other interest and similar income 6,279 8,423
Interest expenses from financial instruments -4,025 -5,545
Interest expenses from net obligations for defined benefit plans -1,363 -1,436
Other interest costs -2,525 -2,652
Other interest and similar expenses -7,913 -9,633
Remeasurement gains or losses (non-operating) 6,197 -539
Net financial result 4,563 -1,749

Other interest and similar income relates to income from the discounting of provisions of €953 thsd (previous year: €1,185 thsd). This item also includes €2,088 thsd (previous year: €2,724 thsd) in interest income from receivables due from non-consolidated associates, as well as companies in which participations are held. Other interest and similar income includes negative interest on bank deposits of - €1 thsd (previous year: -€54 thsd).

Other interest and similar expenses include expenses from the accrued interest of other provisions totalling €270 thsd (previous year: €498 thsd). This item also includes interest expenses on borrowings of €3,637 thsd (previous year: €5,023 thsd).

In addition, the item comprises expenses from the accrued interest of leasing liabilities pursuant to IFRS 16 of €2,114 thsd (previous year: €1,968 thsd). For further details, please refer to Note 7.

21. Income taxes

All figures in €'000 2024 2023
Income taxes 30,276 24,853
of which current taxes on income and on profit 33,059 22,714
of which deferred taxes on unrecognised differences 2,332 4,934
of which deferred taxes on loss carryforwards -5,115 -2,795

Current taxes on income and profit include expenses of €693 thsd (previous year: income of €3,378 thsd) which relate to previous periods.

The current and deferred tax is calculated using the relevant country-specific income tax rate. The anticipated combined income tax rate for domestic companies is 29.76% (previous year: 29.15%) and is made up of corporation tax at 15.0% (previous year: 15.0%), solidarity surcharge at 5.5% (previous year: 5.5%) and an average municipal trade tax rate of 14.14% (previous year: 13.32%).

The taxation rates likely to be applicable at their time of implementation should be used to calculate deferred income taxes. The taxation rates used here are those that are valid or have been announced for the periods in question as of the balance sheet date.

The following reconciliation statement shows the relationship between the earnings before taxes and the taxes on income and profit in the financial year:

All figures in €'000 2024 2023
Earnings before taxes 99,554 68,976
Group income tax rate 29.76% 29.15%
Calculated income tax expenditure in the financial year 29,627 20,106
Tax-exempt earnings and permanent differences -2,189 724
Non-deductible expenses 1,461 1,863
Divergent trade taxation charge 645 836
Effects of other taxation rates applicable abroad -1,429 -912
Income tax not relating to the period (current and deferred) 625 -3,321
Loss forfeiture 397 1,611
Change in impairments of unused losses 1,059 4,231
Other 80 -285
Income taxes 30,276 24,853

The effective income tax rate applicable to the earnings before taxes is 30.41% (previous year: 36.03%).

The tax-exempt earnings and permanent differences include tax-exempt dividends at MLP Finanzberatung SE and RVM Versicherungsmakler GmbH, tax-exempt capital gains at MLP Banking AG and Deutschland.Immobilien Projekte GmbH, as well as impairments on shares in affiliated companies and the derecognition of shares in affiliated companies due to mergers.

Non-deductible expenses result from consultancy fees in connection with Group restructuring measures, entertainment expenses, gifts, as well as non-deductible operating expenses incurred in the context of tax-exempt dividends and capital gains, Supervisory Board compensation and other relevant factors.

Based on positive financial projections, the MLP Group has recognised deferred tax assets arising from temporary differences amounting to €60 thsd (previous year: €165 thsd) as of December 31, 2024, for companies that recorded a loss in the current or prior period, exceeding deferred tax liabilities.

At companies with taxable unrecognised differences, deferred tax assets were recorded on tax loss carryforwards, taking into account the minimum level of taxation. Legal or economic restrictions were in place with regard to the usability of corporation tax losses of €59,693 thsd (previous year: €50,373 thsd) and business tax losses of €64,137 thsd (previous year: €56,285 thsd). Accordingly, no deferred tax assets were generally recognised for this. If full utilisation of the losses had been possible, it would have theoretically been necessary to recognise deferred tax assets of €12,671 thsd (previous year: €12,416 thsd).

The tax deferrals result from the balance sheet items as follows:

All figures in €'000 Deferred tax assets Deferred tax liabilities
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023
Intangible assets - - 18,476 17,077
Property, plant and equipment 3 - 6,360 5,923
Financial assets 3 9 2,284 1,356
Other assets 3,563 3,988 7,376 10,945
Provisions 11,253 11,027 3 1
Liabilities 4,930 3,096 3,114 594
Tax loss carryforwards 19,514 16,769 - -
Impairment of loss carryforwards -12,671 -12,416 - -
Impairment of unrecognised differences -153 -168 - -
Other liabilities - - - -
Gross value 26,442 22,305 37,613 35,896
Netting of deferred tax assets and liabilities 17,060 18,636 17,060 18,636
Total 9,382 3,669 20,553 17,260

Deferred tax expenses recognised under other comprehensive income outside the income statement were €338 thsd (previous year: deferred tax income of €1,557 thsd). Of this amount, €22 thsd (previous year: deferred tax expense: €3 thsd) relates to deferred tax expense on equity instruments measured a fair value (FVOCI) und €317 thsd (previous year: deferred tax income of €1,560 thsd) relates to deferred tax expenses on the remeasurement of defined benefit obligations.

Tax refund claims include €2,877 thsd (previous year: €3,716 thsd) of corporation tax and €608 thsd (previous year: €3,692 thsd) of trade tax. Tax refund claims of €994 thsd (previous year: €865 thsd) are attributable to MLP SE, €17 thsd (previous year: €4,296 thsd) to MLP Finanzberatung SE, €999 thsd (previous year: €1,000 thsd) to FERI (Luxembourg) S.A., €833 thsd (previous year: €1,066 thsd) to the DI Deutschland.Immobilien AG Group, €535 thsd (previous year: €181 thsd) to RVM GmbH and €107 thsd (previous year: €0 thsd) to Uniwunder GmbH.

Tax liabilities include €9,305 thsd (previous year: €9,254 thsd) of corporation tax and €9,274 thsd (previous year: €8,291 thsd) of trade tax. Tax liabilities of €2,232 thsd (previous year: €7,632 thsd) are attributable to MLP SE, €10,430 thsd (previous year: €4,716 thsd) to MLP Finanzberatung SE, €3,849 thsd (previous year: €3,183 thsd) to FERI (Luxembourg) S.A., €106 thsd (previous year: €397) to FERI (Switzerland) AG, €1,669 thsd (previous year: €1,568 thsd) to the DI Deutschland.Immobilien Group, €44 thsd (previous year: €49 thsd) to RVM GmbH and €249 thsd (previous year: 0 thsd) to Uniwunder GmbH.

The tax liabilities are due to taxes on the income and profit of the individual companies based on the corresponding national tax regime. Contingent tax liabilities are shown under deferred tax liabilities.

As of December 31, 2024, MLP had undistributed profits of subsidiaries of around €129,966 thsd (previous year: €113,926 thsd), for which no deferred tax liabilities were formed, as MLP is in a position of controlling the timing of the reversal of the temporary difference and it is unlikely that the temporary difference will be reversed in the foreseeable future.

In accordance with § 83 of the Minimum Tax Act (MinStG), MLP SE is exempt from the minimum tax due to its limited international activities.

22. Earnings per share

The calculation for the basic earnings per share is based on the following data:

All figures in €'000 2024 2023
Basis of the basic net profit per share 69,265 48,582
All figures in number of units 2024 2023
Weighted average number of ordinary shares for the basic net profit per share 109,188,748 109,208,394

The basic earnings per share is €0.63 (previous year: €0.44).

The calculation for the diluted earnings per share is based on the following data:

All figures in €'000 2024 2023
Basis of the diluted net profit per share 69,265 48,582
All figures in number of units 2024 2023
Weighted average number of ordinary shares for the diluted net profit per share 109,334,686 109,334,686

The diluted earnings per share is €0.63 (previous year: €0.44).

The weighted average number of ordinary shares used to calculate basic earnings per share is influenced solely by the share buyback to service the participation programme for MLP consultants and branch office managers. The share buyback performed by MLP Finanzberatung SE of 577,202 MLP SE shares in the period from January to March 2024, as well as the issue of 541,468 MLP SE shares in April 2024, reduced the weighted average in the financial year. Further information on the participation programme can be found in Note 36.

23. Intangible assets

All figures in €'000 Goodwill Software
(developed
inhouse)		 Software
(purchased)		 Advance
payments and
developments in
progress		 Other intangible
assets		 Total
Acquisition/manufacturing costs
As of Jan. 1, 2023 139,221 21,650 111,448 727 112,670 385,716
Additions - 105 3,215 1,997 19 5,336
Addition to the scope of
consolidation*		 899 - - - - 899
Disposals - - -174 -72 -13 -260
Transfers - 500 126 -626 - -
As of Dec. 31, 2023 140,120 22,255 114,614 2,026 112,676 391,691
Additions - - 2,422 300 108 2,830
Addition to the scope of
consolidation*		 2,104 - 249 - - 2,353
Disposals - - -3,293 -74 -1 -3,367
Disposals from the scope of
consolidation		 -6 - - - - -6
Transfers - - 1,799 -1,799 - 0
Current currency difference - - -3 - - -3
As of Dec. 31, 2024 142,218 22,255 115,789 453 112,783 393,497
Depreciation and impairments
As of Jan. 1, 2023 2,850 17,506 99,698 - 31,147 151,202
Depreciation - 1,659 6,100 - 2,853 10,612
Impairment 4,344 - - - 240 4,585
Disposals - - -163 - -2 -166
Current currency difference - - 1 - - 1
As of Dec. 31, 2023 7,195 19,165 105,635 - 34,238 166,233
Depreciation - 1,191 3,775 - 2,763 7,730
Impairment - - - - - -
Disposals - - -2,328 - - -2,328
Current currency difference - - -1 - - -1
As of Dec. 31, 2024 7,195 20,356 107,082 - 37,001 171,634
Carrying amount Jan. 1, 2023 136,371 4,144 11,750 727 81,523 234,514
Carrying amount Dec. 31, 2023 132,925 3,090 8,978 2,026 78,438 225,458
Carrying amount Jan. 1, 2024 132,925 3,090 8,978 2,026 78,438 225,458
Carrying amount Dec. 31, 2024 135,023 1,898 8,707 453 75,783 221,864

The additions to the scope of consolidation are due to the first-time consolidation of Uniwunder GmbH. The disposal in the scope of consolidation is the result of the deconsolidation of Sechste Projekte Deutschland.Immobilien GmbH. Further information is presented in Note 5.

Intangible assets comprise definite-lived and indefinite-lived assets. Depreciation/amortisation and impairment of intangible assets are presented in Note 17.

Useful life as of
Dec. 31, 2024		 Useful life as of
Dec. 31, 2023
Acquired software/licences 2-7 years 3-7 years
Software developed in-house 3-5 years 3-5 years
Acquired trademark rights - -
Client relations / existing contracts 10-25 years; 40
years		 10-25 years; 40
years
Favourable lease 5 years 5 years
Goodwill / trademarks undefinable undefinable

Useful lives of intangible assets

The goodwill originating from company acquisitions was allocated by MLP at the level of the cashgenerating units. The reportable Financial Consulting business segment contains the following groups of cash-generating units: (1) financial consulting, (2) occupational pension provision and (3) ZSH. The goodwill arising from the initial consolidation of Uniwunder was allocated to the cash-generating unit Financial Consulting. Further details can be found in Note 5. No goodwill has been allocated to the reportable Banking business segment. The reportable FERI business segment includes the cashgenerating unit FERI Assetmanagement. The reportable DOMCURA business segment contains the DOMCURA cash-generating unit. The reportable business segment Deutschland.Immobilien contains DI Projekte and DI Vertrieb as cash-generating units. The goodwill arising from the acquisition of RVM, the Jahn Group and the DSV Group was allocated to a cash-generating Industrial Broker unit, which in turn is allocated to the reportable Industrial Broker segment. Cash-generating units were allocated the following goodwill values arising from business combinations:

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Financial Consulting 24,146 22,042
Occupational pension provision 9,955 9,955
ZSH 4,072 4,072
Financial Consulting 38,173 36,069
FERI Asset Management 56,940 56,940
FERI 56,940 56,940
DOMCURA 5,663 5,663
DOMCURA 5,663 5,663
DI Projects 11,701 11,706
DI Sales 8,630 8,630
Deutschland.Immobilien 20,331 20,336
Industrial Broker 13,917 13,917
Industrial Broker 13,917 13,917
Total 135,023 132,925

The recoverable amount is determined on the basis of the value in use of the cash-generating units. This requires an estimate by the management of the anticipated future cash flows over a detailed planning horizon of four years.

There was no need for an impairment of capitalised goodwill in the financial year 2024. In the previous year, an impairment loss of €4,344 thsd was recognised for the cash-generating unit DI Projekte within the reportable segment Deutschland.Immobilien.

The significant assumptions presented in the following were based on the impairment test performed.

Reportable Financial Consulting business segment

Financial Consulting cash-generating unit
Weighted average (in %) 2024 2023
Discount rate (before tax) 9.7 11.6
Growth rate of the terminal value 1.2 1.2
Expected EBT growth rate (relative average EBT increase per year) 14.2 3.8
Occupational provision cash-generating unit
Weighted average (in %) 2024 2023
Discount rate (before tax) 9.7 11.5
Growth rate of the terminal value 1.2 1.2
Expected EBT growth rate (relative average EBT increase per year) 22.9 13.0
Cash-generating unit ZSH
Weighted average (in %) 2024 2023
Discount rate (before tax) 9.3 10.9
Growth rate of the terminal value 1.2 1.2
Expected EBT growth rate (relative average EBT increase per year) * *

* Growth rate cannot be arithmetically determined due to a negative starting basis.

Reportable FERI business segment

2024 2023
13.5 14.8
1.2 1.2
2.9 15.8

Reportable DOMCURA business segment

DOMCURA cash-generating unit
Weighted average (in %) 2024 2023
Discount rate (before tax) 9.5 11.3
Growth rate of the terminal value 1.2 1.2
Expected EBT growth rate (relative average EBT increase per year) 17.0 7.4

Reportable Deutschland.Immobilien business segment

DI Projekte cash-generating unit
Weighted average (in %) 2024 2023
Discount rate (before tax) 9.9 15.3
Growth rate of the terminal value 1.2 1.2
Expected EBT growth rate (relative average EBT increase per year) * *
DI Vertrieb cash-generating unit
Weighted average (in %)
Discount rate (before tax) 9.7 14.9
Growth rate of the terminal value 1.2 1.2
Expected EBT growth rate (relative average EBT increase per year) * *

* Growth rate cannot be arithmetically determined due to a negative starting basis.

Reportable Industrial Broker business segment

Cash-generating unit Industrial Broker
Weighted average (in %) 2024 2023
Discount rate (before tax) 9.3 11.0
Growth rate of the terminal value 1.2 1.2
Expected EBT growth rate (relative average EBT increase per year) 11.9 33.9

Under the given assumptions, MLP is anticipating further uncertainties and constraints, not least due to the ongoing impact of the Ukraine conflict on the geopolitical and macroeconomic situation.

The capitalisation rate is made up of a risk-free interest rate of 2.50% (previous year: 2.80%), a market risk premium of 6.50% (previous year: 6.82%), as well as an individual beta factor for each cashgenerating unit in the range from 0.70 to 1.15 (previous year: 0.82 to 1.19).

In the project development business of Deutschland.Immobilien, projects are implemented with an average project duration of up to four years. Due to the finite lifecycle of a real estate project, the corporate planning includes not only specific project initiatives that are already concrete and have been started as of the balance sheet date, but also those projects that have not yet commenced but have been sufficiently concretised as of the balance sheet date.

As of the balance sheet date, the following assumptions are incorporated into the detailed planning of the anticipated future cash flows for the DI Projekte cash-generating unit:

  • Completion of the real estate projects that are underway and concrete as of the balance sheet date by the end of the detailed planning period 2028, and
  • two projects that are not yet concrete, with project completion by the end of 2028.

In order to achieve the sustainable growth of 1.2% expected for the cash-generating unit DI projects, the expected future cash flows for the detailed planning period 2025-2028 are extrapolated in the impairment test through a subsequent transition phase into the so-called "perpetual annuity". For this transition phase, a long-term achievable sales level is derived based on the average sales growth during the detailed planning period, factoring in the required borrowing based on historical experience and incorporating real estate project-specific cycles. This transition phase is necessary in view of the restructuring process initiated in the financial year and the adjustment to the strategic direction of the project development business in order to achieve a stable and sustainable state.

Within the scope of its impairment testing MLP conducted sensitivity analyses. A so-called adverse scenario was developed in order to simulate an economic downturn that potentially continues beyond the year 2025. This scenario leads to a reduction of the planned annual results before taxes in the first detailed planning year by up to 176% (previous year: a reduction of planned earnings before taxes of up to 37% over the four detailed planning years) in the cash-generating units FERI Assetmanagement, DOMCURA, Financial Consulting and Industrial Broker. In this respect, a corresponding reduction in the planned EBT in these four cash-generating units was examined. The reduction in planned earnings before taxes does not lead to an impairment of capitalised goodwill in any of the cash-generating units; the carrying amount would not exceed the recoverable amount in any cash-generating unit.

In addition to this, the effects of an increase to the risk-free interest rate of 70 basis points (previous year: 70 basis points) were investigated alongside a reduction of the terminal value growth rates from 1.2% to 1.0% (previous year: 1.2% to 1.0%) for all cash-generating units. Neither scenario would result in an impairment of the recognised goodwill in any cash-generating unit; the carrying amount would not exceed the recoverable amount in any cash-generating unit.

In addition, MLP has performed two further sensitivity analyses for the DI Projekte cash-generating unit. The underlying assumptions for future projects incorporate interest expenses for the necessary planned borrowed capital. For this reason, the effects of a 50% increase in interest on borrowed capital with unchanged borrowing requirements during the transition phase were initially analysed. Secondly, the effects of a 50% increase in borrowing requirements with unchanged borrowing interest rates during the transition phase were simulated. Both of these scenarios would result in no impairment loss of the capitalised goodwill of the DI Projekte cash-generating unit; the carrying amount of the cash-generating unit DI Projekte would not exceed its recoverable amount.

The item "Other intangible assets" essentially contains acquired trademark rights, client relationships/existing contracts with a defined term, as well as indefinite-lived trademark names acquired within the scope of company acquisitions. In view of the recognition of these trademarks, at present no definite end of their useful lives can be specified.

The acquired trademarks are attributed to the following cash-generating units:

The "FERI" trademark is fully attributed to the cash-generating unit of the "FERI" reportable business segment:

All figures in €'000 2024 2023
FERI Asset Management 15,829 15,829
FERI 15,829 15,829

The "DOMCURA" trademark is fully attributed to the cash-generating unit of the "DOMCURA" reportable business segment:

All figures in €'000 2024 2023
DOMCURA 7,023 7,023
DOMCURA 7,023 7,023

There are no restrictions on disposal or pledges with regard to intangible assets. Contractual obligations for the purchase of intangible assets have a net total of € 0 thsd as of December 31, 2024 (previous year: €128 thsd).

24. Property, plant and equipment

All figures in €'000 Land, leasehold
rights and buildings*		 Other fixtures, fittings
and office equipment*		 Payments on
account and
assets under
construction*		 Total
Acquisition/manufacturing costs
As of Jan. 1, 2023 103,952 58,798 731 163,482
Translation effects - 24 - 24
Additions 1,036 6,730 3,669 11,434
Addition to the scope of consolidation* - - - -
Disposals -228 -3,070 -6 -3,304
Transfers 269 506 -774 -
As of Dec. 31, 2023 105,029 62,987 3,620 171,635
Translation effects - -10 - -10
Additions 236 7,883 16,294 24,413
Addition to the scope of consolidation* - 47 - 47
Disposals -114 -1,027 -136 -1,277
Transfers 19 5,180 -5,199 -
As of Dec. 31, 2024 105,169 75,059 14,579 194,808
Depreciation and impairments
As of Jan. 1, 2023 37,020 43,423 - 80,443
Translation effects - 10 - 10
Depreciation 2,334 5,008 - 7,342
Addition depreciation - - - -
Impairment - - - -
Disposals -228 -3,026 - -3,254
Current currency-related value changes - 2 - 2
As of Dec. 31, 2023 39,126 45,418 - 84,543
Translation effects - -5 - -5
Depreciation 2,990 5,758 - 8,749
Addition depreciation - - - -
Impairment - - - -
Disposals -84 -998 - -1,082
Current currency-related value changes - -1 - -1
As of Dec. 31, 2024 42,032 50,172 - 92,204
Carrying amount Jan. 1, 2023 66,933 15,375 731 83,039
Carrying amount Dec. 31, 2023 65,903 17,569 3,620 87,092
Carrying amount Jan. 1, 2024 65,903 17,569 3,620 87,092
Carrying amount Dec. 31, 2024 63,137 24,887 14,579 102,604

*excluding leases

The addition to the scope of consolidation is due to the first-time consolidation of Uniwunder GmbH. Further information is presented in Note 5.

Useful lives of property, plant and equipment

Useful life/residual
value Dec. 31,
2024		 Useful life/residual
value Dec. 31,
2023
Administration buildings 33 years to residual
value (30% of
original cost)		 33 years to residual
value (30% of
original cost)
Land improvements 15-20 years 15-20 years
Leasehold improvements 10 years or duration
or the respective
tenancy agreement		 10 years or duration
or the respective
tenancy agreement
Furniture and fittings 3 - 25 years 3 - 25 years
IT hardware 1 - 11 years 1 - 11 years
Office equipment, office machines 2-20 years 2 - 23 years
Cars 2 - 6 years 2 - 6 years
Other means of transport 6 - 7 years 6 - 7 years
Works of art 15-20 years 15-20 years

Depreciation/amortisation and impairment of property, plant and equipment are disclosed in Note 17.

The payments on account and assets under construction refer to acquired property, plant and equipment and construction costs in connection with construction services. There are no restrictions on disposal or pledges with regard to property, plant and equipment. Contractual obligations for the purchase of property, plant and equipment amount to €2,186 thsd net as of December 31, 2024 (previous year: €5,052 thsd).

Leases

Rights of use from leases are disclosed under the "property, plant and equipment" item. As of December 31, 2024, rights of use of €55,300 thsd are in place (previous year: €55,242 thsd), €52,098 thsd (previous year: €52,250 thsd) thereof is attributable to rented properties, €3,105 thsd (previous year: €2,799 thsd) to vehicle leases and €97 thsd (previous year: €193 thsd) to operating and office equipment.

In the financial year, rights of use from leases developed as follows. There were additions of €14,790 thsd (previous year: €15,851 thsd) and disposals of €4,617 thsd (previous year: €3,745 thsd).Amortisation of rights of use from leases of €3,434 thsd (previous year: €2,737 thsd) were recognised in the financial year. The changes are mainly due to rented properties. Translation effects increased the rights of use from leases by €16 thsd (previous year: €167 thsd) and resulted in particular from the appreciation of the Swiss franc against the euro.

Depreciation/amortisation and impairment are disclosed in Note 17.

In the financial year 2024 some properties were sublet, resulting in an income of €438 thsd (previous year: €395 thsd).

The table below shows a maturity analysis of inflows from the sub-lease of real estate and reflects the undiscounted payments received after the balance sheet date of the financial year and of the previous year.

All figures in €'000 Up to 1 year 1 – 5 years >5 years Total
Sublettings 2024 510 719 - 1,229
Sublettings 2023 148 122 - 270

25. Receivables from clients in the banking business

Receivables from clients in the banking business

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Originated loan 1,107,427 980,389
Corporate bond debts 95,194 127,980
Receivables from credit cards 131,074 103,034
Receivables from current accounts 24,155 24,982
Receivables from wealth management 1,869 1,042
Other 7,827 4,768
Total, gross 1,367,546 1,242,195
Impairment -11,699 -11,206
Total, net 1,355,847 1,230,989

As of December 31, 2024 receivables (net) with a term of more than one year remaining to maturity are €1,171,242 thsd (previous year: €996,644 thsd).

The gross carrying amounts of receivables from clients in the banking business developed as follows in the financial year:

Reconciliation statement for gross carrying amounts of receivables from clients in the Banking business for 2024

All figures in €'000 Stage 1 (12-
month ECL)		 Stage 2
(lifetime ECL –
not credit
impaired)		 Stage 3
(lifetime
ECL –
impaired
Credits)		 Purchased or
originated
credit
impaired
Financial
instruments
(POCI)		 Total
As of Jan. 1, 2024 1,128,360 98,588 13,574 1,674 1,242,196
Transfer to Stage 1 25,925 -25,918 -7 - -
Transfer to Stage 2 -40,262 40,284 -22 - -
Transfer to Stage 3 -5,823 -367 6,189 - -
Allocation 232,572 31,830 454 - 264,856
of which newly acquired or
issued
financial assets		 126,071 6,515 433 - 133,019
of which existing business 106,501 25,315 21 - 131,837
Disposals -115,462 -18,329 -5,715 - -139,505
of which derecognised
financial assets		 -50,856 -11,418 -4,423 - -66,696
of which existing business -64,606 -6,911 -1,091 - -72,608
Of which write downs - - -201 - -201
As of Dec. 31, 2024 1,225,309 126,089 14,474 1,674 1,367,546

Reconciliation statement for gross carrying amounts of receivables from clients in the Banking business for 2023

All figures in €'000 Stage 1 (12-
month ECL)		 Stage 2
(lifetime ECL –
not credit
impaired)		 Stage 3
(lifetime
ECL –
impaired
Credits)		 Purchased or
originated
credit
impaired
Financial
instruments
(POCI)		 Total
As of Jan. 1, 2023 1,093,390 55,971 12,315 27 1,161,702
Transfer to Stage 1 17,440 -17,153 -287 - -
Transfer to Stage 2 -63,106 63,256 -150 - -
Transfer to Stage 3 -323 -6,613 6,937 - -
Allocation 209,064 7,124 574 1,652 218,414
of which newly acquired or
issued
financial assets		 100,436 5,531 - 1,652 107,619
of which existing business
Disposals		 108,628
-128,105		 1,594
-3,997		 574
-5,814		 -
-4		 110,795
-137,920
of which derecognised
financial assets		 -78,629 -2,027 -269 - -80,925
of which existing business -49,476 -1,970 -5,277 - -56,723
Of which write downs - - -268 - -268
As of Dec. 31, 2023 1,128,360 98,588 13,574 1,674 1,242,195

178 MLP Annual Report 2024

Receivables from clients in the banking business to collect contractual cash flows held by MLP are carried at amortised costs using the effective interest method. Assuming no bad debts are in place, all financial assets are recorded in Stage 1 on their date of acquisition and then written down over the next twelve months with an anticipated default.

If the credit risk increases significantly, a transfer from Stage 1 to Stage 2 is performed. This involves a calculation of the impairment on the basis of the expected credit loss over the entire remaining term. If there are objective indications of a credit impairment or a default status, the financial asset is recognised in Stage 3.

See Note 7 for further details on the impairment methods used and calculation of the impairment.

Loan loss provisions for receivables from clients in the banking business developed as follows in the reporting year:

Development of loan loss provisions pursuant to IFRS 9 2024

All figures in €'000 Stage 1 (12-
month ECL)		 Stage 2
(lifetime ECL –
not impaired)		 Stage 3
(lifetime
ECL –
impaired
Credits)		 Purchased or
originated
credit
impaired
Financial
instruments
(POCI)		 Total
As of Jan. 1, 2024 1,402 3,473 6,330 2 11,206
Transfer to Stage 1 44 -44 - - -
Transfer to Stage 2 -69 69 -1 - -
Transfer to Stage 3 -0 -4 4 - -
Allocation 615 2,704 3,291 - 6,610
of which newly acquired or
issued
financial assets		 - - - - -
of which existing business 615 2,704 3,291 - 6,610
Disposals -492 -1,259 -4,364 - -6,115
of which usage - - -3,224 - -3,224
of which reversals -492 -1,259 -1,140 - -2,891
As of Dec. 31, 2024 1,500 4,939 5,261 2 11,701

179 MLP Annual Report 2024

Development of loan loss provisions pursuant to IFRS 9 2023

All figures in €'000 Stage 1 (12-
month ECL)		 Stage 2
(lifetime ECL –
not impaired)		 Stage 3
(lifetime
ECL –
impaired
Credits)		 Purchased or
originated
credit
impaired
Financial
instruments
(POCI)		 Total
As of Jan. 1, 2023 1,762 4,353 6,292 2 12,408
Transfer to Stage 1 29 -29 - - -
Transfer to Stage 2 -188 192 -4 - -
Transfer to Stage 3 -2 -690 692 - -
Allocation 542 1,476 2,170 - 4,188
of which newly acquired or
issued
financial assets		 225 254 - - 479
of which existing business 317 1,222 2,170 - 3,709
Disposals -742 -1,829 -2,819 - -5,390
of which usage -112 -241 -2,800 - -3,153
of which reversals -631 -1,588 -19 - -2,238
As of Dec. 31, 2023 1,402 3,473 6,330 2 11,206

Loan loss provisions increased from €11,206 thsd to €11,701 thsd in the financial year. Loan loss provisions on existing business increased by €3,291 thsd (previous year: €2,170 thsd) as a result of changes in the credit rating, as well as transfers to Level 3.

In the financial year, the post model adjustment was increased by €991 thsd to €2,000 thsd to account for the heightened risk situation arising from the emergence and impact of geopolitical crises and macroeconomic uncertainties, including those related to the new U.S. administration as well as various crises and conflict hotspots (Ukraine, Gaza/Israel, etc.). For further details, please refer to Note 7.

Allocations to Stage 2 of €2,704 thsd (previous year: €1,476 thsd) are mainly attributable to credit rating downgrades resulting in a transfer from Stage 1 to Stage 2, as well as allocations of €991 thsd for the Post Model Adjustment. This is offset by Level 2 disposals of -€1,259 thsd (previous year: -€1,588 thsd) and Level 3 disposals of -€4,364 thsd (previous year: -€2,819 thsd), which are associated with credit rating upgrades.

Taking into account direct write-offs of €201 thsd (previous year: €268 thsd) as well as income recovered from written off receivables of -€160 thsd (previous year: -€193 thsd), allocations of €6,610 thsd (previous year: €4,188 thsd) and reversals of -€2,891 (previous year: -€2,238 thsd) recognised in income resulted in a net loan loss provision of €3,760 thsd in the reporting year (previous year: € 2,025 thsd).

Qualitative and quantitative information on contributions from anticipated losses 2024

All figures in €'000 Max. default risk without
taking into account collateral
or other measures aimed at
enhancing credit ratings as
of Dec. 31, 2024
Financial instruments of Stage 1		 Financial instruments of Stage 2 Financial instruments of Stage 3 and POCI
Of which max.
default risk of
Stage 1		 Of which risk
reduction by
collateral*		 Of which max.
default risk of
Stage 2		 Of which risk
reduction by
collateral*		 Of which max.
default risk of
Stage 3 / POCI		 Of which risk reduction
by collateral*
Receivables from clients in the banking business (AC) 1,355,847 1,223,705 368,669 123,253 34,601 8,889 2,171
Receivables from financial institutions in the banking
business (AC)		 764,881 764,881 - - - - -
Financial assets (AC) 168,240 168,240 - - - -
Other receivables (AC) 232,957 - - 213,679 - 19,278 -
Sureties and warranties 2,703 2,647 - 52 - 3 -
Irrevocable credit commitments 113,096 111,073 - 2,023 - - -
Total 2,637,723 2,270,546 368,669 339,007 34,601 28,171 2,171

*Land charges are recognised as collateral to reduce the maximum default risk.

Qualitative and quantitative information on contributions from anticipated losses 2023

All figures in €'000 Max. default risk without
taking into account collateral
or other measures aimed at
enhancing credit ratings as
of Dec. 31, 2023
Financial instruments of Stage 1		 Financial instruments of Stage 2 Financial instruments of Stage 3 and POCI
Of which max.
default risk of
Stage 1		 Of which risk
reduction by
collateral*		 Of which max.
default risk of
Stage 2		 Of which risk
reduction by
collateral*		 Of which max.
default risk of
Stage 3 / POCI		 Of which risk reduction
by collateral*
Receivables from clients in the banking business (AC) 1,230,989 1,144,988 336,929 77,822 26,865 8,179 1,738
Receivables from financial institutions in the banking
business (AC)		 779,074 779,074 - - - - -
Financial assets (AC) 162,093 162,093 - - - - -
Other receivables (AC) 208,030 - - 203,207 - 4,824 -
Sureties and warranties 2,096 2,007 - 59 - 29 -
Irrevocable credit commitments 131,137 127,769 - 3,369 - - -
Total 2,513,419 2,215,931 336,929 284,456 26,865 13,032 1,738

*Land charges are recognised as collateral to reduce the maximum default risk.

As of the balance sheet date, the maximum default risk corresponds to the carrying amount after impairment of each of the categories of financial assets listed above. Credit impaired or defaulted receivables from clients in the banking business disclosed in Stage 3 as of December 31, 2024 of €8,889 thsd (previous year: €8,179 thsd) are secured by land charges of €2,171 thsd (previous year: €1,738 thsd). The maximum default risk of sureties and warranties, as well as irrevocable credit commitments, corresponds to the face value of €115,799 thsd (previous year: €133,233 thsd).

The Group holds forwarded loans of €149,307 thsd (previous year: €140,088 thsd) in the form of collateral for liabilities due to refinancing banks.

Due to defaults of debtors, ownership of financial and non-financial assets of €3,907 thsd (previous year: €184 thsd) serving as collateral for originated loans and receivables, was acquired in the financial year. The assets mainly consist of receivables from utilised deposits and the liability release from sureties.

Information on the fair value of financial assets is provided in Note 38.

26. Receivables from financial institutions in the banking business

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Due on demand 133,213 117,194
Other receivables 631,668 661,880
Total 764,881 779,074

All receivables from financial institutions in the banking business are due from domestic credit institutions. As of December 31, 2024 receivables with a term of more than one year remaining to maturity are €67,785 thsd (previous year: €45,177 thsd). The receivables are not collateralised. At the closing date there are no receivables from banks which are overdue. As was the case in the previous year, there are no receivables with a high risk of default which are assigned to Stage 2 as of the closing date. All receivables from banks totalling to €764,881 thsd (previous year: €779,074 thsd) are disclosed in Stage 1 and an anticipated 12-month loss is determined. The anticipated losses on receivables from banks are €113 thsd in the financial year (previous year: €156 thsd). This leads to a net loan loss provision expense of -€43 thsd in the reporting year (previous year: -€17 thsd).

Further information on receivables from financial institutions in the banking business is disclosed in Note 38.

27. Financial assets

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
By public-sector issuers 60,384 65,167
By other issuers 97,706 81,889
Debenture and other fixed income securities 158,090 147,056
Shares and certificates 862 3,487
Investment fund shares 1,780 1,535
Shares and other variable yield securities 2,641 5,022
Other investments (fixed and time deposits) 10,150 20,075
Investments in non-consolidated subsidiaries 8,177 5,241
Shares in associates (not at equity) 2,300 2,652
Investments 6,813 4,081
Total 188,171 184,127

As of December 31, 2024, there are debentures and other fixed income securities of €105,938 thsd (previous year: €105,356 thsd), and one promissory note bond of €10,000 thsd (previous year: €10,000 thsd) with more than twelve months remaining to maturity.

As per the measurement categories for financial instruments defined in IFRS 9, the financial investment portfolio breaks down as follows:

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
AC 158,090 142,018
FVPL - 5,037
Debenture and other fixed income securities 158,090 147,056
FVPL 2,641 2,391
Shares and other variable yield securities (FVPL) 2,641 2,391
FVOCI - 2,632
Shares and other variable yield securities (FVOCI) - 2,632
Fixed and time deposits (AC) 10,150 20,075
Investments in non-consolidated subsidiaries (N/A) 8,177 5,241
Shares in associates (not at equity) (N/A) 2,300 2,652
Investments (FVPL) 6,813 4,081
Total 188,171 184,127

Debentures and other fixed income securities with a net carrying amount of €158,090 thsd (previous year: €142,018 thsd) are measured at amortised costs. The anticipated 12-month loss on debentures and other fixed income securities measured at amortised costs is €21 thsd in the financial year (previous year: €32 thsd). The gross carrying amount of debentures measured at amortised cost in Stage 1 is €157,231 thsd (previous year: €141,453 thsd). Overall, the change from the previous year resulted in reversals of loan loss provisions in the amount of -€7 thsd (previous year: -€20 thsd).

In addition, no (previous year: €5,037 thsd) debentures and other fixed income securities are measured at fair value through profit or loss in the financial year. The fixed-income security disposed of during the financial year resulted in valuation differences from price gains amounting to €35 thsd (previous year: €64 thsd), which are also recognised under remeasurement gains or losses. During the financial year, no credit-related changes in fair value occurred due to the disposal of fixed-income securities (previous year: €4 thsd).

In the financial year 2024, shares and other variable yield securities of €2,641 thsd (previous year: €2,391 thsd) are measured at fair value through profit or loss. The shares are equity instruments, while other non-fixed-income securities are debt instruments that do not meet the cash flow criterion and are therefore recognised at fair value through profit or loss. The measurement at fair value results in valuation differences from price losses of -€78 thsd (previous year: -€11 thsd), which are recognised under remeasurement gains or losses.

In the financial year 2024, no equity stakes are held (previous year: 2 equity stakes amounting to €2,632 thsd), which are measured at fair value through other comprehensive income (FVOCI). At the time of acquisition, the optional recognition of market value fluctuations in other comprehensive income was chosen for both equity instruments. Thus, only dividends from these shares are recognised in the income statement under other income.

The shares in non-consolidated subsidiaries rose by €4,000 thsd due to an increase in the shareholding in pxtra GmbH. The loss of the shares in Uniwunder GmbH, which was fully consolidated for the first time in the 2024 financial year, had the opposite effect (-€500 thsd). In addition, write-downs of €600 thsd (previous year: €2,084 thsd) and no write-ups (previous year: €91 thsd) were recognised. The impairment loss was recognised in other expenses and the write-up in other income.

The investments essentially comprised private equity investments. These are assigned to the "Hold" business model. They are debt instruments which do not satisfy the cash flow criterion and are measured at fair value of €6,813 thsd (previous year: €3,416 thsd). This results in gains from valuation differences of €1,530 thsd (previous year: €391 thsd), which are recognised as remeasurement gains or losses.

Assets pledged as collateral

As at the closing date, the availability of liquidity facilities provided by Deutsche Bundesbank is collateralised by marketable securities of €126,702 thsd (previous year: €99,675 thsd) with a face value of €134,140 thsd (previous year: €107,700 thsd).

For further disclosures regarding financial assets, please refer to Note 38.

28. Inventories

Inventories break down as follows:

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Inventories – land 8,534 11,381
Inventories – buildings 17,642 28,174
Total 26,175 39,555

Due to the sale of residential units, €2,790 thsd (previous year: €22,464 thsd) of inventories were accounted for as an expense in the item "Inventory changes" of the income statement in the last financial year. In addition to this, impairment losses of €1,353 thsd (previous year:€2,282 thsd) on inventories were recognised in the item "Inventory changes" in the income statement.

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Trade accounts receivable 129,255 106,607
Contractual assets 31,837 46,755
Receivables from underwriting business 31,844 25,315
Refund receivables from recourse claims 25,009 22,698
Receivables from MLP consultants 7,345 6,030
Advance payments 1,865 1,086
Purchase price receivables 4,168 -
Other assets 55,468 51,508
Total, gross 286,791 259,999
Impairment -15,736 -11,723
Total, net 271,054 248,726

29. Other receivables and assets

As of December 31, 2024, other receivables and assets (net) with a term of more than one year remaining to maturity are €49,383 thsd (previous year: €44,481 thsd). Other receivables of €221,671 thsd are current receivables falling due in less than one year.

The main items included in trade receivables are commission receivables from insurance companies. They are generally non-interest-bearing and have an average term of payment of 30 days.

Refund receivables from recourse claims are due to MLP consultants and branch office managers, as well as insurance companies.

Receivables from the underwriting business comprise unpaid receivables from clients, as well as receivables from insurance companies for claims settlement.

The purchase price receivables relate to the sale of shares in Projekte Deutschland.Immobilien GmbH mentioned in Note 5. These receivables are measured at fair value. To determine the sensitivity, the planned project results, which determine the purchase prices, were increased/reduced by 50%. This leads to an increase/decrease in purchase price receivables of +€1,840/-€2,165 thsd.

The contractual assets in the context of unit-linked life insurance policies developed as follows:

All figures in €'000 2024 2023
As of Jan. 1* 34,052 36,332
Additions from new contracts 5,602 6,278
Payments received -8,028 -8,525
Change of transaction price - -
Gross receivable as of Dec. 31 31,626 34,086
Impairments pursuant to IFRS 9 -32 -34
As of Dec. 31 31,595 34,052

*Impairment as of Jan. 1, 2024 -€34 thsd; Jan. 1, 2023 -€34 thsd

The contractual assets of the newly acquired Dr. Schmitt GmbH Würzburg result from the brokerage of unit-linked life insurance policies and developed as follows:

All figures in €'000 2024 2023
As of Jan. 1 240 709
Additions from new contracts including contract initiation costs 0 0
Payments received -238 -470
Gross receivable as of Dec. 31 2 240
As of Dec. 31 2 240

The contractual assets relating to projects of Deutschland.Immobilien developed as follows:

All figures in €'000 2024 2023
As of Jan. 1* 12,421 7,776
Additions from new contracts including contract initiation costs 4,542 38,614
Payments received -16,515 -32,143
Changes to the scope of consolidation - -70
Gross receivable as of Dec. 31 448 14,177
Amortisation of contract initiation costs -247 -1,748
Impairment -3 -8
As of Dec. 31 198 12,421

*Impairment as of Jan. 1, 2024 -€8 thsd; Jan. 1, 2023 €0 thsd

The contractual assets shown in the table include contract initiation costs of €0 thsd in the context of the Deutschland.Immobilien projects (previous year: €53 thsd). The amortisation of contract initiation costs is based on the completion progress of the respective real estate project.

Other receivables and assets are usually not collateralised. With regard to receivables and other assets, which are neither impaired nor overdue, there are no signs at the closing date that debtors will not meet their payment obligations. On the closing date there were no other receivables and assets for which new terms were agreed and which would otherwise have been overdue or written down.

As part of a project development of the Deutschland.Immobilien Group, there are receivables due from this non-consolidated project enterprise as of the balance sheet date, for which four subordination agreements are in place. As of December 31, 2024, these are in the low double-digit million range.

The loan loss provisions for expected losses on other receivables and assets have developed as follows in the financial year:

Development of loan loss provisions pursuant to IFRS 9 2024

All figures in €'000 Stage 2 Stage 3 Total
As of Jan. 1, 2024 2,187 9,086 11,273
Changes to the scope of consolidation 0 - 0
Allocation 956 6,155 7,111
Disposals -917 -1,730 -2,648
of which usage -21 -1,299 -1,320
of which reversal -896 -431 -1,328
As of Dec. 31, 2024 2,226 13,511 15,736

Development of loan loss provisions pursuant to IFRS 9 2023

All figures in €'000 Stage 2 Stage 3 Total
As of Jan. 1, 2023 3,931 10,369 14,300
Changes to the scope of consolidation - - -
Allocation 1,567 1,263 2,831
Disposals -3,311 -2,547 -5,858
of which usage -167 -1,133 -1,300
of which reversal -3,144 -1,414 -4,558
As of Dec. 31, 2023 2,187 9,086 11,273

MLP uses the simplified approach described in IFRS 9.5.5.15 to determine the loan loss provisions on anticipated losses from other receivables. Based on this, these receivables are already assigned to Stage 2 during initial recognition and no estimate is performed regarding a significant increase of the credit risk. If the assets display any objective indications of credit impairments, they are transferred to Stage 3.

MLP uses a loss rate approach to determine the losses anticipated throughout the entire term of the contract. Here, historical credit default rates are determined for defined portfolios with the same risk characteristics. The anticipated losses are estimated on the basis of historical losses.

In cases where MLP institutes enforcement or where insolvency proceedings are imminent or have already started, receivables are written down based on empirical values. The same applies to receivables which are disputed and where legal action is pending.

Taking into account direct write-offs of €151 thsd (previous year: €836 thsd), allocations of €7,111 thsd (previous year: €2,831 thsd) and reversals of €1,328 (previous year: €4,558 thsd) recognised in income resulted in a net loan loss provision of -€5,934 thsd in the reporting year (previous year: € 892 thsd). The allocations in Stage 3 are largely attributable to the Deutschland.Immobilien segment. These allocations were made to loan receivables from a non-consolidated project company for which subordination has been declared. As of December 31, 2024, the total volume of receivables recognised in Stage 2 is €201,651 thsd (previous year: €198,749 thsd). An impairment loss of €2,226 thsd (previous year: €2,187 thsd) was recognised for this. As of December 31, 2024, the total volume of receivables recognised in Stage 3 is €31,306 thsd (previous year: €9,335 thsd). There are objective indications of an impairment or default status for these receivables. An impairment loss of €13,511 thsd was recognised for this (previous year: €9,086 thsd). Alongside the aforementioned allocations, consumption of €1,299 thsd was recognised in the financial year. These were incurred in the Deutschland.Immobilien segment.

Additional disclosures on other receivables and assets can be found in Note 38.

30. Cash and cash equivalents

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Bank deposits and cash on hand 78,572 90,164
Deposits at Deutsche Bundesbank 1,071,755 963,752
Total 1,150,327 1,053,916

All cash and cash equivalents are assigned to Stage 1 and do not contain any holdings with increased default risk. As was the case in previous years, cash and cash equivalents include deposits at Deutsche Bundesbank. Changes in cash and cash equivalents during the financial year are shown in the statement of cash flow.

31. Shareholders' equity

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Share capital 109,335 109,335
Treasury stock -37 -1
Share capital 109,298 109,333
Capital reserves 148,585 149,623
Retained earnings 312,576 279,575
Statutory reserves 3,129 3,129
Other retained earnings and net profit 313,826 283,189
Gains/losses from changes in the fair value of financial assets 2,049 638
Revaluation gains/losses related to defined benefit obligations after taxes -6,428 -7,381
Equity attributable to MLP SE shareholders 570,459 538,531
Non-controlling interests -156 -6,326
Total shareholders' equity 570,302 532,205

Share capital

As of December 31, 2024, the share capital of MLP SE comprises 109,297,624 (previous year: 109,333,358) ordinary shares with a par value of €1 per share. 577,202 own shares were acquired in the financial year. These will be issued to MLP consultants and branch office managers within the scope of a share-based payment.

Authorised capital

A resolution passed by the Annual General Meeting on June 2, 2022 authorised the Executive Board, with the consent of the Supervisory Board, to increase the company's share capital by up to €21,500,000 in exchange for cash or non-cash contributions on one or more occasions until June 1, 2027.

Acquisition of treasury stock

The Annual General Meeting on June 24, 2021 authorised the Executive Board to buy back own shares on one or more occasions with a pro rata amount of capital stock represented by such shares of up to €10,933,468 until June 23, 2026. This corresponds to slightly less than 10% of the share capital at the time of the resolution. On December 13, 2023, the Executive Board at MLP SE, with the consent of the Supervisory Board, approved a share buyback, which was carried out by MLP Finanzberatung SE. The shares were to be used exclusively for share-based payments in 2024 under the 2023 participation programme. As of the balance sheet date, MLP Finanzberatung SE holds a residual number of 37,062 MLP SE shares (previous year: 1,328 MLP SE shares). Due to the dedicated use and short holding period of the shares, the company elected not to disclose detailed information as per §160 (1) No. 2 of the German Stock Corporation Act (AktG). For further details, please refer to Note 36.

The share buyback for the 2024 participation programme will take place in 2025.

Capital reserves

The capital reserves include increases/decreases in capital stock in MLP SE from previous years. The capital reserves are subject to the restrictions on disposal as per § 150 of the German Stock Corporation Act (AktG). The change in capital reserves in the financial year is the result of recording share-based payment in line with IFRS 2. For further details, please refer to Note 36.

Other retained earnings and net profit

Other retained earnings comprise retained earnings of the MLP Group and a reserve for treasury shares of €719 thsd (previous year: €566 thsd).

Gains/losses from changes in the fair value of financial assets

The retained earnings contain gains or losses from the fair value measurement of equity instruments (FVOCI) of €2,081 thsd (previous year: €648 thsd) and deferred taxes attributable to these of €31 thsd (previous year: €10 thsd).

Revaluation gains/losses related to defined benefit obligations after taxes

The retained earnings contain losses from the revaluation of defined benefit obligations of €9,205 thsd (previous year: €10,474 thsd) and deferred taxes attributable to these of €2,776 thsd (previous year: €3,093 thsd).

Non-controlling interests

Non-controlling interests comprise minority interests held by third parties in the equity of subsidiaries MLP SE. With the initiation of restructuring proceedings at DI Deutschland.Immobilien AG, MLP SE acquired the remaining shares in DI Deutschland.Immobilien AG and therefore now holds 100% of the shares. As a result, the non-controlling interests have changed.

Appropriation of profits from the previous year

In the financial year, a dividend of €32,789 thsd was paid. This corresponds to €0.30 per share.

Proposed appropriation of profit

The Executive Board and Supervisory Board of MLP SE will propose a dividend of €39,360 thsd (previous year: €32,789 thsd) for the financial year 2024 to the Annual General Meeting. This corresponds to €0.36 (previous year: €0.30) per share.

32. Provisions

Pension provisions

At MLP, executive members of staff have been granted direct pension benefits subject to individual contracts in the form of defined benefit plans which guarantee the beneficiaries the following pension payments:

  • Old-age pension upon reaching 60, 62 or 65 years of age
  • Disability pension
  • Widow's and widower's pension of 60% of the pension of the original recipient
  • Orphan's benefit of 10% of the pension of the original recipient.

The benefit obligations are partially financed through reinsurance policies, which essentially fulfil the prerequisites of pension scheme assets.

The defined benefit obligation for retirement income, funded only by means of provisions, amounts to €13,637 thsd (previous year: €14,001 thsd). Reinsurance policies are in place for all other pension obligations (defined benefit obligation of €28,276 thsd; previous year: €29,561 thsd).

The change in net liability from defined benefit plans is summarised in the following table:

All figures in €'000 Defined benefit
obligation		 Fair value of pension
scheme assets		 Net liability from
defined benefit plans
2024 2023 2024 2023 2024 2023
As of Jan. 1 42,968 38,135 -27,769 -27,231 15,199 10,904
Current service cost 305 268 - - 305 268
Past service cost - - - - - -
Interest expenses (+)/ income (-) 1,363 1,436 -905 -1,054 458 382
Recognised in profit or loss 1,668 1,704 -905 -1,054 763 650
Actuarial gains (-)/ losses (+) from:
financial assumptions -1,097 3,371 - - -1,097 3,371
experience adjustments -269 1,608 - - -269 1,608
Gains (-)/ losses (+) from pension scheme assets
without amounts recognised as interest income		 - - 96 320 96 320
Gains (-)/ losses (+) from revaluations* -1,366 4,979 96 320 -1,270 5,299
Contributions paid by the employer - - -592 -602 -592 -602
Payments made -1,950 -1,850 805 799 -1,145 -1,051
Other -1,950 -1,850 213 197 -1,737 -1,654
As of Dec. 31 41,320 42,968 -28,365 -27,769 12,955 15,199

*Recognised in other comprehensive income

In addition to this, one asset value of €141 thsd (previous year: €187 thsd) does not satisfy the prerequisite for pension scheme assets as per IAS 19. For this purpose, reinsurance assets of the same amount have been recognised

In total, €6,507 thsd (previous year: €6,251 thsd) of net liabilities recognised in the balance sheet are attributable to members of the Executive Board that were active on the reporting date.

With regard to net pension provisions, payments of €1,891 thsd are anticipated for 2025 (previous year: €1,914 thsd). Some €1,084 thsd of this total (previous year: €1,114 thsd) is attributable to direct, anticipated pension payments of the company, while €807 thsd (previous year: €801 thsd) is attributable to anticipated premiums for reinsurance policies.

Actuarial calculations incorporate the following assumptions:

2024 2023
Assumed interest rate 3.40% 3.20%
Anticipated annual pension adjustment 2.2%/3.0% 2.2%/3.0%

The assumptions made regarding future mortality are based on published statistics and mortality tables (2018 G Heubeck mortality charts).

On December 31, 2024, the weighted average term of defined benefit obligations was 18 years (previous year: 18 years).

Sensitivity analysis

If the other assumptions all remained the same, changes to one of the key actuarial assumptions, which would have been realistically possible on the closing date, would have influenced the defined benefit obligations by the following amounts:

All figures in €'000 Change of
parameter		 Reduction/
increase of
defined obligation
0.5% -2,553
Assumed interest rate -0.5% 2,831
0.5% 2,725
Pension trend -0.5% -2,487
10.0% -1,347
Mortality -10.0% 1,520

In order to define the sensitivity of mortality, all mortality rates stated in the mortality table were changed by +/-10%. By changing life expectancy, this leads to an increase/decrease in the scope of defined benefit obligations. Although the analysis does not take into account the full distribution of anticipated cash flow based on the plan, it does provide an approximation of the sensitivity of the assumptions presented. A staff turnover of 0% was taken into account in the calculation.

Alongside defined benefit plans, defined contribution plans are also in place. With these types of plans the company pays premiums to state or private pension insurance institutions in line with legal or contractual regulations or on a voluntary basis. The regular premiums paid for employees are recorded under personnel expenses and amounted to €16,779 thsd (previous year: €10,996 thsd) in the financial year 2024.

Other provisions are made up as follows:

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Current Non-current Total Current Non-current Total
Cancellation risks 15,740 23,445 39,185 15,515 22,730 38,245
Bonus schemes 30,154 2,065 32,218 29,610 641 30,251
Litigation risks/ costs 3,738 - 3,738 877 7,007 7,883
Jubilee benefits 310 3,059 3,370 230 2,559 2,789
Claim settlement
contributions/commission reductions		 2,954 - 2,954 653 - 653
Economic loss 2,623 - 2,623 369 - 369
Provisions for off-balance-sheet
transactions		 305 579 884 330 560 889
Phased retirement 239 620 859 331 422 753
Rent 100 - 100 - - -
Other 5,849 2,048 7,897 5,307 1,875 7,182
Total 62,013 31,816 93,829 53,221 35,794 89,015

Other provisions have changed as follows:

All figures in €'000 Jan. 1,
2024		 Utilisation Reversal Compound
ing /
Discounting		 Allocation Addition to
the scope of
consoli
dation		 Netting Dec. 31,
2024
Cancellation risks 38,245 -15,189 -89 85 16,133 - - 39,185
Bonus schemes 30,251 -29,421 -191 - 31,578 - - 32,218
Litigation risks/ costs 7,883 -4,688 -1,878 40 2,381 - - 3,738
Jubilee benefits 2,789 -222 - 40 762 - - 3,370
Claim settlement
contributions/commi
ssion reductions		 653 -282 -45 - 2,628 - - 2,954
Economic loss 369 -75 -1 - 2,330 - - 2,623
Provisions for off
balance-sheet
transactions		 889 - -317 - 312 - - 884
Phased retirement 753 -345 - 7 443 - - 859
Rent - - - - 100 - - 100
Other 7,182 -3,502 -313 - 8,928 - -4,398 7,897
Total 89,015 -53,723 -2,834 172 65,597 - -4,398 93,829

The provisions for cancellation risks allow for the risk of having to refund earned commissions due to a premature loss of brokered insurance policies. Should this be the case, commissions already paid will be reclaimed from MLP consultants and branch office managers. MLP has also conducted sensitivity analyses here. An increase in the cancellation rates of 50% when applying these rates to new business from the 2024 calendar year would lead to a €7,543 thsd increase in the provision for cancellation risks. See Note 29 for further details regarding reimbursement rights resulting from recourse claims.

Provisions for bonus schemes are recognised for client support commissions and incentive agreements for MLP consultants and branch office managers.

Provisions for litigation risks/costs are recognised to cover for risks arising from pending or ongoing legal proceedings and disputes.

Special provisions are established for jubilee benefits for members of staff. The actuarial calculations are based on an assumed interest rate of 3.4% (previous year: 3.2%).

Due to contractual obligations towards insurance companies, provisions for claim settlement contributions/ commission reductions are to be recognised in accordance with the current estimate of the development of claims and premiums of in-force portfolios.

Provisions for economic loss due to liability risks are offset by claims for reimbursement from liability insurance policies with a value of €2,384 thsd (previous year: €351 thsd).

Provisions for off-balance sheet transactions include, as in the previous year, provisions for off-balance sheet transactions from the lending business of €471 thsd (previous year: €476 thsd) as well as loan loss provisions of €413 thsd (previous year: €413 thsd) for a surety that was granted in 2023 by MLP Finanzberatung SE to a project enterprise of the DI Group but had not yet been utilised as of the balance sheet date. Pursuant to IFRS 9, a loan loss provision must be formed for these off-balance sheet transactions.

The provision for phased retirement is established to cover for obligations resulting from phased retirement agreements.

Other provisions are recognised, inter alia, for obligations in connection with incentive trips. In the previous year, this item also comprised provisions for contingent losses of €883 thsd for contingent losses due to the project business of the Deutschland.Immobilien Group. These were no longer in place as of December 31, 2024.

The provisions classed as short-term are likely to be utilised within the next financial year. Payments for long-term provisions are essentially likely to be incurred within the next 2 to 49 years.

Provisions for off-balance sheet transactions have changed as follows in the financial year:

All figures in €'000 Stage 1 (12-month
ECL)		 Stage 2 (lifetime ECL –
not impaired)		 Stage 3 (lifetime ECL -
impaired)		 Total
As of Jan. 1, 2024 580 193 115 889
Transfer to Stage 1 6 -6 0 -
Transfer to Stage 2 -10 10 0 -
Transfer to Stage 3 -0 -0 0 -
Allocation 84 136 93 312
of which newly acquired
or issued financial assets		 - - - -
of which existing
business		 84 136 93 312
Disposals -90 -113 -114 -317
of which reversals -90 -113 -114 -317
As of Dec. 31, 2024 570 220 94 884

Provisions for off-balance sheet transactions have changed as follows in the previous year:

All figures in €'000 Stage 1 (12-month
ECL)		 Stage 2 (lifetime ECL –
not impaired)		 Stage 3 (lifetime ECL -
impaired)		 Total
As of Jan. 1, 2023 261 176 341 778
Transfer to Stage 1 2 -2 0 -
Transfer to Stage 2 -61 61 0 -
Transfer to Stage 3 -0 -4 5 -
Allocation 512 105 112 728
of which newly acquired
or issued financial assets		 78 38 - 116
of which existing
business		 433 67 112 612
Disposals -132 -142 -343 -617
of which reversals -132 -142 -343 -617
As of Dec. 31, 2023 580 193 115 889

33. Liabilities due to banking business

This summary includes the balance sheet items Liabilities due to clients in the banking business and Liabilities due to banks in the banking business.

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Current Non-current Total Current Non-current Total
Liabilities due to clients 2,694,396 219,590 2,913,987 2,544,410 220,214 2,764,624
Liabilities due to banks 8,568 144,269 152,837 3,542 137,069 140,611
Total 2,702,965 363,860 3,066,824 2,547,953 357,283 2,905,235

Liabilities due to clients from savings deposits with an agreed notice period of three months of €20,319 thsd were in place as of December 31, 2024 (previous year: €23,797 thsd).

The liabilities due to clients or due to other banks do not comprise any large individual items.

Further information on liabilities due to banking business is disclosed in Notes 38 and 39.

34. Other liabilities

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Current Non-current Total Current Non-current Total
Liabilities due to banks and lenders 13,402 50,709 64,111 6,406 60,523 66,929
Liabilities due to MLP consultants and
branch office managers		 56,357 8,070 64,427 51,563 8,984 60,547
Leasing liabilities 12,738 45,392 58,130 12,269 45,279 57,548
Trade accounts payable 52,834 - 52,834 47,164 - 47,164
Liabilities due to underwriting
business		 44,474 - 44,474 39,495 - 39,495
Personnel-related liabilities 34,327 8,816 43,143 25,524 5,649 31,173
Liabilities due to other taxes 13,338 - 13,338 9,177 - 9,177
Contract liabilities - - - 318 - 318
Liabilities due to social security
contributions		 119 - 119 187 - 187
Purchase price liabilities - 930 930 - - -
Other liabilities 23,409 4,325 27,734 23,951 4,510 28,461
Total 250,998 118,242 369,240 216,054 124,946 341,000

Liabilities due to banks and creditors include borrowings of MLP Finanzberatung SE and the Deutschland.Immobilien Group.

Liabilities due to MLP consultants and branch office managers represent unsettled and future commission claims. Usually they are non-interest-bearing and due on the 15th of the month following the settlement with the insurance company.

Leasing liabilities of €58,130 thsd (previous year: €57,548 thsd) include liabilities for lease payments on real estate of €54,850 thsd (previous year: €54,507 thsd), liabilities for lease payments on vehicles of €3,183 thsd (previous year: €2,848 thsd) and liabilities for lease payments for operating and office equipment of €97 thsd (previous year: €194 thsd). The total outflow of cash and cash equivalents for leases was €15,134 thsd in the financial year 2024 (previous year: €14,601 thsd).

Liabilities from the underwriting business include collection liabilities due to insurance companies, open third-party commission claims, as well as liabilities from claims settlement.

Other liabilities essentially comprise deferred obligations of €12,146 thsd (previous year: €13,784 thsd), deferred income of €5,779 thsd (previous year: €8,614 thsd) and commissions withheld from MLP consultants for cancellations of €3,047 thsd (previous year: €3,113 thsd). Commissions withheld are charged with interest. Their term is mainly indefinite.

MLP has agreed-upon and non-utilised lines of credit amounting to €219,811 thsd (previous year: €209,633 thsd).

Further disclosures on other liabilities can be found in Note 37 and 38.

Contract liabilities relating to DI projects developed as follows:

All figures in €'000 2024 2023
As of Jan. 1 318 -
Payments received -318 -2,603
Changes to the scope of consolidation - 2,284
As of Dec. 31 - -318

35. Notes to the statement of cash flow

Reconciliation statement of liabilities from financing activities

All figures in €'000 Jan. 1, 2024 Cash-effective
changes		 Non-cash-effective
changes		 Dec. 31, 2024
Liabilities from the assumption of financing
loans		 64,001 3,702 -3,612 64,091
Leasing liabilities 57,548 -15,134 15,715 58,129
Total 121,549 -11,432 12,103 122,220

The liabilities from financing activities essentially comprise the long-term liabilities from the assumption/repayment of financing loans of €64,091 thsd (previous year: €64,001 thsd), as well as from leasing liabilities of €58,129 thsd (previous year: €57,548 thsd). The change in liabilities due to the taking out of financing loans amounting to €90 thsd includes cash-effective borrowings, net of redemptions and interest paid of €3,702 thsd, as well as non-cash interest expenses of -€3,612 thsd. The change in leasing liabilities of €581 thsd contains cash-effective repayments of leasing liabilities of -€15,134 thsd, as well as other changes resulting from new leases and interest rate effects of €15,715 thsd.

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 financial assets which can be converted into cash at any time and which are only subject to minor value fluctuation risks.

In the consolidated cash flow statement, the repayments of and investments in fixed income securities were not netted as part of the presentation of cash flow from investing activities. The presentation in the previous year has therefore been adjusted accordingly.

Cash and cash equivalents

All figures in €'000 Dec. 31, 2024 Dec. 31, 2023
Cash and cash equivalents 1,150,327 1,053,916
Liabilities to banks due on demand (excluding the banking business) -20 -
Cash and cash equivalents 1,150,307 1,053,916

Receivables of MLP Banking AG due from banks are included in cash and cash equivalents, insofar as they are separable as own-account investing activities. Inseparable elements are allocated to the operating business of the Banking business segment and therefore to cash flow from operating activities. All deposits at the Deutsche Bundesbank are disclosed under cash and cash equivalents.

As a result of the sale and subsequent deconsolidation of Zehnte Projekte 2 Deutschland.Immobilien GmbH, Sechste Projekte Deutschland.Immobilien GmbH, Seniorenzentrum Albstadt GmbH and Seniorenwohnpark Ehingen GmbH, the following assets and liabilities were disposed of by the Group: intangible assets of €271 thsd, inventories of €9,141 thsd, other receivables and assets of €7 thsd, liabilities due to banks pf €3,798 thsd and other liabilities of €8,693 thsd.

36. Share-based compensation

Participation programme

The participation programme with cash settlement launched in 2008 for branch office managers, MLP consultants and employees expired in 2022 and concluded in 2023 with the payment of the final "Tranche 2011". Expenses and the provision from the participation programme were recognised pro rata temporis throughout the individual phases (vesting period). In 2023, expenses of €18 thsd and income of €39 thsd were incurred in connection with the "Tranche 2011". Following the conclusion of the participation programme, the provision of €1,311 thsd, in place at the beginning of 2023, was fully utilized or reversed.

The participation programme for MLP consultants and MLP branch office managers was launched in 2017. Its objective was to extend recognition of extraordinary and sustainable performance, as well as the performance and client focus of MLP consultants and MLP branch office managers, while also making a contribution to keeping high performers both motivated and loyal to the company. Set against this background, MLP consultants and MLP branch office managers are to be enabled to acquire shares in MLP SE within the scope of the participation programme and in line with its conditions without having to make any additional payments.

Assuming all eligibility requirements are met, those MLP consultants entitled to participate are each granted a number of bonus shares, determined pursuant to the provisions of the participation programme (taking into account income tax effects where applicable). This number is calculated by dividing the "bonus amount" by the average closing price of the MLP SE share. The "bonus amount" is calculated on the basis of the MLP consultant's annual commission, as well as various performance factors. The key average closing auction price used for determining the number of bonus shares to be awarded is the arithmetic mean of the closing auction prices of the MLP SE share in XETRA trading on the Frankfurt Stock Exchange (or a comparable successor system that replaces XETRA) in the reference period comprising all trading days on the Frankfurt Stock Exchange from the start of January up to and including March 2024. In the financial year, 541,468 shares were issued (previous year: 650,062). An expense of €1,858 thsd (previous year: €2,896 thsd) was recognised for the 2024 bonus amount in the consolidated financial statements with a reserve-increasing effect.

37. Contingent assets and liabilities, as well as other liabilities

As it is composed of companies operating in different lines of business, MLP is exposed to a variety of legal risks. These include, in particular, risks from warranties/compensation, taxes, the cancellation behaviour of MLP clients, legal disputes and pending supreme court proceedings. The outcome of currently pending or future legal actions cannot be forecast with any degree of certainty and it follows that expenses could be incurred as a result of unexpected decisions, which has not been fully covered by loan loss provisions or insurance policies and which is liable to have a material impact on the business and its results. In MLP's opinion, decisions producing a major negative effect on the net assets, financial position and results of operations at the Group's expense are not anticipated with regard to the currently pending legal actions.

Reinsurance has been arranged for benefit obligations for branch office managers. Final liability for the benefit obligation lies with MLP in accordance with § 1 (1) sentence 3 of the German Company Pension Law (BetrAVG). MLP does not currently anticipate any financial consequences as a result of this.

MLP Banking AG is a member in the depositors' guarantee fund of the Association of German Banks (BdB e.V.), Berlin, and in the Compensation Scheme of German Banks (EdB GmbH), also in Berlin. Obligations to make additional payments could potentially arise from the allocation obligation here.

On the balance sheet date, there are €2,715 thsd (previous year: €2,096 thsd) in contingent liabilities on account of sureties and warranties (face value of the obligation) and irrevocable credit commitments (contingent liabilities) of €113,096 thsd (previous year: €131,137 thsd). In addition to this, MLP Finanzberatung SE took on a surety of €15,000 thsd in the previous year for a liability of a project enterprise of the Deutschland.Immobilien Group. In terms of sureties and warranties, any utilisation remains unlikely as in the past. The irrevocable credit commitments are generally utilised.

Furthermore, within the scope of real estate sales, MLP has undertaken to acquire the residential units in four real estate projects that had not been sold by a contractually agreed date. None of the four agreements is expected to result in a significant cash outflow.

As of the balance sheet date, other financial commitments were as follows:

All figures in €'000 Up to 1 year 1 – 5 years >5 years Total
Licence contracts 22,861 26,896 - 49,757
Outsourcing IT technology 16,824 946 - 17,771
Commitment due to the construction projects 8,562 2,147 - 10,708
Other obligations 6,019 2,182 - 8,201
Purchase commitments 4,323 - - 4,323
Project development for ongoing building projects 1,257 - - 1,257
Total 59,847 32,171 - 92,018

As of December 31, 2023, other financial commitments were as follows:

All figures in €'000 Up to 1 year 1 – 5 years >5 years Total
Licence contracts 22,299 24,908 - 47,207
Outsourcing IT technology 24,314 7,176 - 31,490
Commitment due to the construction projects 10,419 9,956 - 20,375
Other obligations 6,107 2,326 - 8,433
Purchase commitments 13,606 - - 13,606
Project development for ongoing building projects 18,715 - - 18,715
Total 95,460 44,366 - 139,826

Lease contracts concluded in the financial year 2024 which were not included in the leasing liability as of December 31, 2024, as the lease only commences in the following year, will lead to future outflows of cash and cash equivalents of €2,838 thsd (previous year: €305 thsd).

38. Additional information on financial instruments

Classifications and fair values

The carrying amounts and fair values of financial assets and financial liabilities, including their (hierarchical) tiers, are grouped into financial instrument classes and categories as shown in the following tables.

Carrying
amount		 Fair value carrying
amount
corresponding
to fair value		 No financial
instruments
in the sense of
IFRS 9
All figures in €'000 Stage 1 Stage 2 Stage 3 Total
Financial assets at fair value
through profit or loss (FVPL)		 24,099 345 - 23,754 24,099 24,099
Financial assets (structured bonds) 517 - - 517 517 517 -
Financial assets (investment fund
shares)		 2,125 345 - 1,780 2,125 2,125 -
Investments 6,813 - - 6,813 6,813 6,813 -
Investments in non-consolidated
subsidiaries		 8,177 - - 8,177 8,177 8,177 -
Shares in associates (not at equity)* 2,300 - - 2,300 2,300 2,300 -
Other receivables and assets 4,168 - - 4,168 4,168 4,168 -
Financial assets measured at
amortised cost (AC)		 3,668,084 1,248,330 1,231,663 1,096,449 3,576,442 1,684,821 38,098
Receivables from banking business
– clients		 1,355,847 - 162,341 1,096,449 1,258,789 162,341 -
Receivables from banking business
– banks		 764,881 - 772,398 - 772,398 133,214 -
Financial assets (fixed and time
deposits)		 150 - 150 - 150 150 -
Financial assets (loans) 10,000 - 10,000 - 10,000 10,000 -
Financial assets (bonds) 158,090 98,003 57,985 - 155,988 - -
Other receivables and assets 228,789 - 228,789 - 228,789 228,789 38,098
Cash and cash equivalents 1,150,327 1,150,327 - - 1,150,327 1,150,327 -
Financial liabilities measured at
amortised cost		 3,373,035 - 3,431,606 - 3,431,606 3,054,725 62,100
Liabilities due to banking business –
clients		 2,913,987 - 2,986,547 - 2,986,547 2,744,031 -
Liabilities due to banking business –
banks		 152,837 - 137,899 - 137,899 3,534 -

Other liabilities 307,161 - 307,161 - 307,161 307,161 62,100

Sureties and warranties* 2,715 - - 2,715 2,715 2,715 Irrevocable credit commitments* 113,096 - 113,096 - 113,096 113,096

*Off balance sheet items. Nominal value before loan loss provision.

Dec. 31, 2024

Of which

Dec. 31, 2023
Carrying
amount		 Fair value** Of which
carrying
amount
corresponding
to fair value		 No financial
instruments
in the sense of
IFRS 9
All figures in €'000 Stage 1 Stage 2 Stage 3 Total
Financial assets at fair value
through profit or loss (FVPL)		 18,970 423 5,037 13,509 18,970 18,970
Financial assets (structured bonds) 5,037 - 5,037 - 5,037 5,037 -
Financial assets (investment fund
shares)		 1,958 423 - 1,535 1,958 1,958 -
Investments 4,081 - - 4,081 4,081 4,081 -
Investments in non-consolidated
subsidiaries		 5,241 - - 5,241 5,241 5,241 -
Shares in associates (not at equity)* 2,652 - - 2,652 2,652 2,652 -
Financial assets measured at fair
value through other
comprehensive income (FVOCI)		 2,632 2,632 - - 2,632 2,632 -
Equity instruments (FVOCI) 2,632 2,632 - - 2,632 2,632 -
Financial assets measured at
amortised cost (AC)		 3,434,102 1,157,303 1,178,632 979,356 3,315,291 1,531,886 40,696
Receivables from banking business
– clients		 1,230,989 - 132,670 979,356 1,112,026 132,670 -
Receivables from banking business
– banks		 779,074 - 783,874 - 783,874 117,195 -
Financial assets (fixed and time
deposits)		 10,068 - 10,068 - 10,068 10,068 -
Financial assets (loans) 10,007 - 10,007 - 10,007 10,007 -
Financial assets (bonds) 142,018 103,387 33,983 - 137,370 - -
Other receivables and assets 208,030 - 208,030 - 208,030 208,030 40,696
Cash and cash equivalents 1,053,916 1,053,916 - - 1,053,916 1,053,916 -
Financial liabilities measured at
amortised cost		 3,185,518 - 3,168,765 - 3,168,765 2,801,419 59,641
Liabilities due to banking business –
clients		 2,764,624 - 2,764,852 - 2,764,852 2,520,613 -
Liabilities due to banking business –
banks		 140,611 - 123,630 - 123,630 523 -
Other liabilities 280,283 - 280,283 - 280,283 280,283 59,641
Sureties and warranties* 2,096 - - 2,096 2,096 2,096
Irrevocable credit commitments* 131,137 - 131,137 - 131,137 131,137

*Off balance sheet items. Nominal value before loan loss provision.

** The reporting of fair values has been adjusted. The "Carrying amount corresponds to fair value" column is shown separately from the fair values; the corresponding values are also shown integrated in the 3-level system.

Cash and cash equivalents, receivables and liabilities due to banking business without agreed terms to maturity, financial investments, trade receivables, receivables from companies in which the Group holds an interest and other assets all predominantly have short terms to maturity. Their carrying amounts on the balance sheet date are therefore almost identical to the fair values. The same applies to the trade accounts payable. In the case of investments, acquisition costs represent a reasonable estimate of the fair value in some cases. At the closing date there is no indication of fair values being lower than carrying amounts. There are also no plans to dispose of these investments.

On the reporting date, MLP held financial guarantees valued pursuant to IFRS 9 in the form of sureties and warranties of €2,715 thsd (previous year: €2,096 thsd). These financial guarantees are measured on the basis of the impairment provisions defined in IFRS 9. Impairments of €425 thsd (previous year: €425 thsd) resulting from this are disclosed under other provisions.

Determining fair value

Insofar as there is an active market for financial assets and financial liabilities, the prices of the market with the greatest trading volume on the closing date are used as the basis for determining the fair value.

In the case of investment shares, the redemption prices published by the capital management companies correspond to the fair value. If there is no active market on the closing date, the fair value is determined using recognised valuation models.

For shares in private equity companies that are disclosed under financial investments and holdings, the fair value is determined on the basis of the so-called net asset values of the respective investments as at the balance sheet date, which are determined and provided by the capital and fund management companies. For private equity companies with variable returns, the measurement is performed in line with the International Private Equity and Venture Capital (IPEV) Valuation Guidelines under the assumption of a full liquidation hypothesis.

For equity instruments of financial investments not listed on an active market, the fair value is generally determined on the basis of the gross rental method using non-observable parameters such as beta factors or risk-equivalent discount interest rates. If it is not possible to reliably determine the fair value, in particular due to a lack of necessary data on earning projections, equity instruments not listed on an active market are recognised at their acquisition costs, minus any impairments. At the closing date there is no indication of fair values being lower than carrying amounts. There are also no plans to dispose of these investments.

The valuation model for assets and liabilities assigned to Level 2 takes into account the present value of the expected future cash inflows/outflows throughout the remaining term, which are discounted using a risk-free discount rate. The discount rate is based on the current yield curve. The anticipated cash flows are adjusted for the effects of credit and default risks. When determining the fair value of financial investments, on the other hand, the discount rate is adjusted to include a credit spread.

The table below shows the valuation techniques that were used to determine Level 3 fair values, as well as the significant, non-observable input factors applied:

Type Valuation technique Significant, non
observable input factors		 Relationship between significant,
non-observable input factors and
measurement at fair value
Receivables from
banking business –
clients with agreed
maturity		 The valuation model takes
into account the present
value of the anticipated future
cash inflows/outflows
throughout the remaining
term, which are discounted
using a risk-free discount
rate. The discount rate is
based on the current yield
curve. Credit and default
risks, administration costs
and expected return on equity
are taken into account when
determining future cash
flows.		 Adjustment of cash flows
by:
Credit and counterparty
default risks
administration costs
expected return on equity		 The estimated fair value would
increase (decrease) if:
the credit and default risk were to fall
(rise)
the admin costs were to fall (rise)
the expected return on equity were
to fall (rise).
Determining the fair
value of private equity
investments with
variable returns		 As per the IPEV Valuation
Guidelines, measurement is
performed at the net asset
value under the assumption
of a full liquidation
hypothesis.		 Net asset values of the
respective investments		 Direct correlation between change in
net asset value and fair value
Determining the fair
value of private equity
investments		 Measurement at the pro rata
net asset value		 Net asset values of the
respective investments		 Direct correlation between change in
net asset value and fair value
Determination of fair
value for non
consolidated
investments and
associated companies
not accounted for using
the equity method		 Equity approach as part of a
(simplified) DCF process		 Development of sales
revenue and earnings for
the planning period		 The fair value would increase
(decrease) if the planned revenue
and earnings were exceeded (not
met).
Determination of fair
value for purchase
price receivables at DI
project companies		 (simplified) DCF method Development of the
respectively planned real
estate project earnings		 The fair value would increase
(decrease) if the planned real estate
project earnings were exceeded (not
met).
Determination of the
fair value of
investments in DI
project companies		 (simplified) DCF method Development of the
respectively planned real
estate project earnings		 The fair value would increase
(decrease) if the planned real estate
project earnings were exceeded (not
met).

Net gains and losses from financial instruments are distributed among the categories for financial assets and financial liabilities at the amounts specified:

All figures in €'000 2024 2023
Assets measured at amortised cost 85,031 69,439
Assets measured at fair value (FVPL) 2,249 878
Assets measured at fair value (FVOCI) 1,490 648
Liabilities measured at amortised cost -33,698 -21,720
Liabilities measured at fair value (FVPL) - -288
Liabilities measured at fair value (FVOCI) - -

Net gains or net losses comprise gains and losses on fair value measurement through profit or loss, impairment losses and reversals of impairment losses, and gains and losses on the sale of the financial instruments concerned.

These items also include interest income and expenses, as well as dividends and income from financial assets derecognised in their entirety.

For financial instruments that were not measured at fair value through profit or loss, interest income of €56,537 thsd (previous year:: €44,038 thsd) and interest expenses of €33,529 thsd (previous year: €21,720 thsd) were incurred in the financial year 2024.

For impairment losses, we refer to the note on the items "Receivables from the banking business", "Other receivables and assets" and "Financial investments". Commission income and expenses that were not included in the process for determining the effective interest rate can primarily be attributed to early repayment penalties to a negligible extent.

The maximum default risk of the financial instruments held by MLP corresponds to the carrying amount.

39. Financial risk management

With the exception of the disclosures in line with IFRS 7.35-39 (b), the disclosures on the type and severity of risks resulting from financial instruments (IFRS 7.31-42) are included in the risk report of the joint management report and in Note 37.

In order to control liquidity risks, the MLP Group has access to very high holdings of cash and cash equivalents due on demand, which are characterised by the immediately available credit balances at the German Central Bank of €1,071.8 million (previous year: €963.8 million), which in themselves already account for 25.8% (previous year: 24.6%) of the consolidated balance sheet total.

In the maturity analysis below, contractual cash inflows are shown with a plus-sign and contractual cash outflows with a minus-sign. For financial guarantees and credit commitments, the potential outflow of cash and cash equivalents is disclosed. The contractually agreed maturities do not correspond to the inflows and outflows of cash and cash equivalents actually expected – in particular in the case of the financial guarantees and credit commitments. Management of the default and liquidity risk is disclosed in the risk report of the joint management report. The tables below show the maturity structure of financial liabilities with their contractual terms to maturity:

Due on
demand		 Up to 1 year 1 to 5 years More than 5
years		 Total
Financial liabilities 2,665,341 486,875 182,158 89,327 3,423,701
Liabilities due to banking business – clients 2,662,425 229,625 6,441 3,113 2,901,604
Liabilities due to banking business – banks 2,916 6,228 57,478 86,215 152,837
Other liabilities - 238,284 72,846 - 311,130
Leasing liabilities - 12,738 45,392 - 58,130
Financial guarantees and credit
commitments		 115,811 - - - 115,811
Sureties and warranties 2,715 - - - 2,715
Irrevocable credit commitments 113,096 - - - 113,096
Total 2,781,152 486,875 182,158 89,327 3,539,512

Total cash flow (principal and interest) in €'000 as of Dec. 31, 2023

Total cash flow (principal and interest) in €'000 as of Dec. 31, 2023

Due on
demand		 Up to 1 year 1 to 5 years More than 5
years		 Total
Financial liabilities 2,514,648 449,857 186,528 84,635 3,235,668
Liabilities due to banking business – clients 2,511,042 231,924 7,467 3,625 2,754,058
Liabilities due to banking business – banks 3,606 1,880 54,115 81,010 140,611
Other liabilities - 203,784 79,667 - 283,451
Leasing liabilities - 12,269 45,279 - 57,548
Financial guarantees and credit
commitments		 133,233 - - - 133,233
Sureties and warranties 2,096 - - - 2,096
Irrevocable credit commitments 131,137 - - - 131,137
Total 2,647,881 449,857 186,528 84,635 3,368,901

40. Declaration of Compliance with the German Corporate Governance Code pursuant to § 161 of the German Stock Corporation Act (AktG)

The Executive Board and Supervisory Board have issued a Declaration of Compliance with the German Corporate Governance Code pursuant to § 161 of the German Stock Corporation Act (AktG) and made it permanently available to shareholders on its website at https://mlp-se.com/investors/corporategovernance/declaration-of-compliance/ and in the Declaration of Corporate Governance included in this Annual Report.

41. Related parties

MLP has identified the persons listed in the following as management in key positions:

Executive Board Mandates in other statutory Supervisory
Boards of companies based in Germany		 Memberships in comparable
domestic and foreign supervisory
bodies of commercial enterprises
Dr Uwe Schroeder-Wildberg, Heidelberg
CEO
Responsible for
Strategy, Clients and Sales, Digitalisation,
Marketing, Communication, Human
Resources & Sustainability		 • FERI AG, Bad Homburg v. d. Höhe
(Chairman)
MLP Finanzberatung SE, Wiesloch
(Chairman)		 –
Reinhard Loose, Berlin
Responsible for
Compliance, Controlling, Internal Audit, IT,
Accounting, Legal Affairs, Risk
Management		 • DOMCURA Aktiengesellschaft, Kiel
• DI Deutschland.Immobilien AG, Hanover		 • Member of the Baden-Württemberg
Stock Exchange Council (since May 16,
2024).
Manfred Bauer, Leimen
Responsible for Product Purchasing and
Management, Infrastructure		 • DOMCURA Aktiengesellschaft, Kiel
(Chairman)
• DI Deutschland.Immobilien AG, Hanover
(Chairman)		 • MLP Hyp GmbH, Wiesloch
(Supervisory Board)
Supervisory Board Mandates in other statutory Supervisory
Boards of companies based in Germany		 Memberships in comparable
domestic and foreign supervisory
bodies of commercial enterprises
Sarah Rössler, Heiden (Switzerland)
Chairwoman
formerly member of the Executive Board at
HUK-COBURG VvaG, HUK-COBURG
Holding AG, HUK-COBURG-Allgemeine
Versicherung AG, HUK-COBURG
Lebensversicherung AG, HUK-COBURG
Krankenversicherung AG, each based in
Coburg		 • VHV Holding AG, Hanover
• VHV Vereinigte Hannoversche
Versicherung a. G., Hanover
• VHV Allgemeine Versicherung AG,
Hanover
• Hannoversche Lebensversicherung AG,
Hanover
• MLP Banking AG (Chairwoman)		 • Member of the Shareholders' Committee
at Thüga GmbH & Co.KGaA
Dr Andreas Freiling, Bad Vilbel
Vice Chairman
Auditor		 • Die Haftpflichtkasse VVaG, Roßdorf
• VPV Lebensversicherungs-AG, Stuttgart
• EUROPA Lebensversicherung AG,
Cologne - since July 2024		 • Versorgungswerk der Wirtschaftsprüfer
und der vereidigten Buchprüfer im
Lande Nordrhein-Westfalen
(Honorary member of the Executive
Board)
Matthias Lautenschläger, Heidelberg
Managing Partner at USC Heidelberg
Spielbetrieb GmbH, Heidelberg
Managing Partner at LEC Capital GmbH,
Heidelberg		 • wob AG, Viernheim
• PREIG AG, Berlin		 –
Monika Stumpf, Schriesheim
Employee representative
Employee of MLP Finanzberatung SE,
Wiesloch		 • MLP Finanzberatung SE, Wiesloch
(Employee representative)		 –
Ursula Blümer, Konstanz
Employee representative
Employee of MLP SE, Wiesloch		 – –
Bernd Groß, Düsseldorf
Chief Technology Officer of Software AG
based in Darmstadt, Managing Director of
Cumulocity GmbH based in Düsseldorf		 – • Advisory Board – Stihl Digital GmbH
(until May 31, 2024)
• Advisory Board – Stihl: Digital GmbH
(until March 31, 2024)

Related persons

In comparison with December 31, 2023, the composition of the Supervisory Board has not changed. We refer to the table above.

Within the scope of the ordinary business, legal transactions were made between individual Group companies and members of the Executive Board and the Supervisory Board of MLP SE as well as related parties. The legal transactions are deposits received of €2,832 thsd (previous year: €3,062 thsd). The legal transactions were completed under standard market or employee conditions.

As of December 31, 2024, members of the Executive Bodies had current account credit lines, surety loans and loans totalling €4,810 thsd (previous year: €2,996 thsd). Surety loans are charged an interest rate of 1.0% (previous year: 1.0%), current account debits 8.10% to 9.9% (previous year: 8.10% to 9.9%) and loans 0.9% (previous year: 0.9%).

The total compensation for members of the Executive Board active on the reporting date is made up of

  • Regular pay including fixed and variable components €2,818 thsd (previous year: €2,425 thsd);
  • Post-employment benefits €602 thsd (previous year: €564 thsd);
  • Other long-term benefits €1,424 thsd (previous year: €1,347 thsd).

In the financial year no members retired from the Executive Board. As of December 31, 2024, pension provisions of €9,725 (previous year: €11,098 thsd) were in place for former members of the Executive Board.

The members of the Supervisory Board received non-performance-linked compensation of €650 thsd for their activities in 2024 (previous year: €670 thsd). In addition, €16 thsd (previous year: €29 thsd) was paid as compensation for expenses and training measures.

For the detailed structure of the pay system and the compensation of MLP SE's Executive Board and Supervisory Board, please refer to the compensation report.

Related companies

Alongside the consolidated subsidiaries, MLP SE comes into direct and indirect contact and has relations with a large number of companies within the scope of its ordinary business. This also includes subsidiaries, associates and joint ventures that are not included in the consolidated financial statements for reasons of materiality. All business dealings are concluded at conditions and terms customary in the industry and which as a matter of principle do not differ from delivery and service relationships with other companies. Payments to related companies for services performed essentially concern wealth management and consulting, as well as brokerage, sales and trailer commissions.

Transactions were carried out with major related companies, which led to the following items in the consolidated financial statements:

Related companies 2024

All figures in €'000 Dec. 31, 2024
Jan. 1 - Dec 31, 2024
Receivables Liabilities Income Expenses
MLP Hyp GmbH, Wiesloch 1,329 108 9,385 845
FPE Private Equity Beteiligungs-Treuhand GmbH,
Munich		 1 - 1 -
FERI Private Equity GmbH & Co.KG, Munich - - - 6
FERI Private Equity Nr. 2 GmbH & Co.KG, Munich - - - 5
DIEASS GmbH, Kiel 0 14 11 14
innoAS GmbH 132 921 2,258 -
DIFA Research GmbH i. L., Berlin - 106 6 4
WD Immobilienmanagement GmbH, Hanover 362 4 91 2
Projekt Deutschland.Immobilien Tengen GmbH,
Hannover		 2,643 360 1 -
Convivo Wohnparks Deutschland.Immobilien
Wittmund GmbH & Co.KG i. I., Hanover		 31 199 - -
Projekte Deutschland.Immobilien Bad Goegging
GmbH, Neustadt a. d. Donau		 20,359 - 5,069 -
(30) Projekte Deutschland.Immobilien GmbH,
Hannover		 3,106 - 133 -
Hartmann Versicherungsmakler GmbH, Mannheim 2 - 721 -
Hans L. Grauerholz GmbH, Hamburg 76 0 85 15
Achte Projekte 2 Deutschland.Immobilien GmbH,
Hanover		 138 - - -
BIG Versicherungsmakler GmbH, Tiefenbronn - - 461 0
Vetter Versicherungsmakler GmbH, Kressbronn am
Bodensee		 - - 190 -
CP 135. Grundstücks GmbH & Co.KG i. I., Bremen 18 - - 5
asspario Versicherungsdienst GmbH, Bad
Kreuznach		 539 - 1,127 1
pxtra GmbH, Rostock 5,485 128 473 2
Total 34,222 1,840 20,013 897

Related companies 2023

Dec. 31, 2023
Jan. 1 - Dec. 31, 2023
All figures in €'000 Receivables Liabilities Income Expenses
MLP Hyp GmbH, Wiesloch (associate) 863 108 7,707 970
Uniwunder GmbH, Dresden - 281 417 6,021
FPE Private Equity Beteiligungs-Treuhand GmbH,
Munich		 1 - 1 -
FERI Private Equity GmbH & Co.KG, Munich - - - 6
FERI Private Equity Nr. 2 GmbH & Co.KG, Munich - - - 5
DIEASS GmbH, Kiel - 14 11 14
innoAS GmbH - 135 1,737 -
DIFA Research GmbH i. L., Berlin - 107 46 5
WD Immobilienmanagement GmbH, Hanover 300 5 163 31
Projekt Deutschland.Immobilien Tengen GmbH,
Saarbrücken		 1,953 360 1,945 -
Convivo Wohnparks Deutschland.Immobilien
Wittmund GmbH & Co.KG i. I., Hanover		 31 199 0 -
Projekte Deutschland.Immobilien Bad Goegging
GmbH, Neustadt a. d. Donau		 21,076 - 1,934 -
(30) Projekte Deutschland.Immobilien GmbH,
Hannover		 2,733 - 269 -
RVM Verwaltungs GmbH, Eningen unter Achalm - 15 - -
Erich Schulz GmbH, Hamburg 62 - - -
Hartmann Versicherungsmakler GmbH, Mannheim - - 19 -
Hans L. Grauerholz GmbH, Hamburg 43 - 44 -
BIG Versicherungsmakler GmbH, Tiefenbronn 1 - 152 -
Vetter Versicherungsmakler GmbH, Kressbronn - - 62 -
Allkuranz Versicherungsmakler GmbH & Co.KG,
Münster		 27 - 29 -
CP 135. Grundstücks GmbH & Co.KG i. I., Bremen 23 - 18 -
asspario Versicherungsdienst GmbH, Bad
Kreuznach		 9 - 292 0
pxtra GmbH, Rostock 3,542 25 238 -
Total 30,664 1,249 15,084 7,051

42. Auditor's fees

The total fees for services performed by the auditing firm BDO AG Wirtschaftsprüfungsgesellschaft in the financial year 2024 (including expenses, but excluding statutory value added tax) are as follows:

All figures in €'000 2024 2023
Audit services 1,130 1,402
Other audit-related services 157 44
Other services 19 6
Total 1,306 1,452

The item "Audit services" includes the invoiced fees for the statutory audit of the individual and consolidated financial statements of MLP SE, as well as for the statutory audit of the individual financial statements of the German subsidiaries. Of the audit services, €103 thsd relate to the previous year.

The other assurance services relate to the first-time audit of the 2024 sustainability reporting and the audit in accordance with the General Terms and Conditions of the German Bundesbank in connection with the use of loan receivables as collateral for central bank loans.

Other services relate to consulting services provided in 2024 for the implementation of the EU Taxonomy Regulation, as well as performance of a readiness assessment in connection with the EU Taxonomy Declaration.

43. Disclosures on equity / capital control

The majority of shareholders' equity of the MLP Group under IFRS is found in the companies comprised in a regulatory Group under CRR (MLP Financial Holding Group). Since capital control of this MLP Financial Holding Group under CRR is based on own funds derived from shareholders' equity, we consider capital control for the MLP Group to be fulfilled overall. For details, please refer to the management report, risk report, the sections entitled "Risk-bearing capacity & capital requirement" and "Capital adequacy requirements and capital control under banking supervisory law".

44. Number of employees

The average number of staff employed at the MLP Group increased from 2,338 in the financial year 2023 to 2,454 in the financial year 2024.

2024 2023
Of which
executive
employees		 Of which
marginal
part-time
employees		 Of which
executive
employees		 Of which
marginal
part-time
employees
Financial Consulting 1,122 29 25 1,091 31 19
Banking 238 5 6 222 5 4
FERI 294 6 37 275 6 41
DOMCURA 333 13 26 311 11 26
Deutschland.Immobilien 93 - 4 109 - 6
Industrial Broker 282 18 22 267 20 18
Holding 92 5 2 64 4 1
Total 2,454 76 120 2,338 77 113

An average of 191 people (previous year: 159) underwent vocational training in the financial year. This includes 55 individuals (previous year: 34) that are being trained as part of the trainee model at MLP Startup GmbH and prepared for their future roles as self-employed commercial agents.

45. Events after the balance sheet date

On February 4, 2025, the XI Civil Senate of the Federal Court of Justice (BGH) ruled in four judgements on the inadmissibility of clauses regarding fees for the custody of deposits in current accounts, instant access savings accounts and savings accounts. Following publication of the still-pending reasons for the judgement, MLP will analyse the effects on the client agreements concluded by MLP Banking AG and take the necessary actions. We do not expect any significant effects on the Group's net assets, financial position or results of operations.

There were no appreciable events after the balance sheet date affecting the net assets, financial position and results of operations of the Group.

46. Release of consolidated financial statements

The Executive Board prepared the consolidated financial statements on March 10, 2025 and will present them to the Supervisory Board on March 26, 2025 for publication.

Wiesloch, March 10, 2025

MLP SE

Executive Board

Dr Uwe Schroeder-Wildberg Manfred Bauer

Reinhard Loose

Responsibility statement

"To the best of our knowledge and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group, and the joint management report gives a fair view of the performance of the business including business results and the overall position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group."

Wiesloch, March 10, 2025

MLP SE

Executive Board

Dr Uwe Schroeder-Wildberg Manfred Bauer

Reinhard Loose

INDEPENDENT AUDITOR'S REPORT

Independent auditor's report

To MLP SE, Wiesloch

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT

OPINIONS

We have audited the consolidated financial statements of MLP SE, Wiesloch, and its subsidiaries (the Group), which comprise the consolidated balance sheet as of December 31, 2024, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated cash flow statement for the financial year from January 1, 2024 to December 31, 2024 as well as the notes to the consolidated financial statements, including a summary of significant accounting policies.

In addition, we have audited the combined management report (report on the situation of the company and the Group) of MLP SE for the financial year from January 1, 2024 to December 31, 2024. In accordance with the German legal requirements we have not audited the content of the components of the combined management report referred to under "OTHER INFORMATION".

In our opinion, on the basis of the knowledge obtained in the audit,

  • ― the accompanying consolidated financial statements comply in all material respects with the IFRSs as adopted by the EU, the additional requirements of German commercial law pursuant to Section 315e (1) of the German Commercial Code (HGB), and in compliance with these requirements, give a true and fair view of the assets, liabilities, and financial position of the Group as of December 31, 2024, and of its financial performance for the financial year from January 1, 2024 to December 31, 2024, and
  • ― the accompanying combined management report as a whole provides a true and fair view of the Group's position. In all material respects, this combined management report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our opinion on the combined management report does not cover the content of the components of the combined management report referred to under "Other information".

Pursuant to Section 322 (3) Sentence 1 of the German Commercial Code (HGB), we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the combined management report.

BASIS FOR THE OPINIONS

We conducted our audit of the consolidated financial statements and of the combined management report in accordance with Section 317 of the German Commercial Code (HGB) and the EU Audit Regulation (No. 537/2014; referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institute of Public Auditors in Germany (Institut der Wirtschaftsprüfer, IDW). Our responsibility in accordance with these regulations and principles is described in greater depth in the section "AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT". We are independent of the Group companies in accordance with European law and German commercial and professional regulations and have fulfilled our other German professional obligations in accordance with these requirements.

In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial statements and on the combined management report.

KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the financial year from January 1, 2024 to December 31, 2024. These audit matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

We have determined the following matters as the particularly key audit matters to be

notified in our auditor's report:

    1. Impairment testing of goodwill
    1. Recognition of commission income

IMPAIRMENT TESTING OF GOODWILL

Audit matter

In the consolidated financial statements of MLP SE as of December 31, 2024, goodwill amounting to EUR 135.0 million (prior year EUR 132.9 million) is reported, which represents 3.3% of the consolidated balance sheet total. This goodwill was assigned to eight different cash-generating units.

Cash-generating units with goodwill are subjected to an impairment test by the company at least once a year, as well as whenever there are indications of an impairment. Measurement is based on a valuation model using the so-called discounted cash flow method. If the carrying amount of a cash-generating unit is higher than the recoverable amount, an impairment loss is recorded at the level of the difference between the two figures.

The assessment of the impairment of goodwill is complex and requires numerous estimates and discretionary decisions on the part of the legal representatives, above all with regard to the level of the future cash flow surpluses, the growth rate for forecasting the cash flow beyond the detailed planning period and the discount interest rate to be employed. Due to the significance of the level of goodwill for the consolidated financial statements of MLP SE and the considerable uncertainties associated with its valuation, it represents a particularly key audit matter.

The disclosures of MLP SE regarding goodwill are contained in Note 7 "Accounting policies" in subsection "Intangible assets" and in Note 23 "Intangible assets" to the consolidated financial statements.

Audit approach

Within the scope of our audit, we assessed the appropriateness of the valuation method applied and of the key measurement assumptions for deriving the recoverable amount, as well as correct and continuous application of the valuation method, for which we incorporated our own valuation specialists.

To this end, we obtained an understanding of both the planning system and the planning process employed and assessed its appropriateness. We have reconciled the forecast of future cash surpluses for the financial year 2025 with the corporate planning prepared by the legal representatives and discussed with the Supervisory Board. We discussed significant assumptions used in the planning with the legal representatives, as well as

further persons responsible for planning. Additionally, we have further analysed the variances between planned and actual figures in the past and the current financial year. We have reconstructed the assumptions underlying the planning and the growth rates assumed in the forecast for the perpetual annuity by comparing them with past developments and current industry-specific market expectations. In addition to this, we critically scrutinised the discount interest rates used on the basis of the average capital costs of a peer group. Our audit also encompassed the sensitivity analyses performed by MLP SE. We also carried out our own sensitivity analyses with regard to the effects of possible changes in capital costs and the growth rates assumed. Furthermore, we are satisfied of the completeness and accuracy of the disclosures in the notes to consolidated financial statements regarding the key assumptions used in impairment testing of goodwill.

RECOGNITION OF COMMISSION INCOME

Audit matter

The consolidated financial statements of MLP SE recognise sales revenue of EUR 1,037.5 million (prior year EUR 941.1 million) for the period from January 1, 2024 to December 31, 2024. Alongside interest income of EUR 90.4 million (prior year EUR 65.7 million) and proceeds from real estate development of EUR 4.7 million (prior year EUR 30.9 million), this includes commission income of EUR 942.5 million (prior year EUR 844.5 million). The range and level of commission income is largely taken from the notifications/statements of numerous insurance companies, fund companies, real estate developers and other external third parties. The approach for reporting contractual data to the Group varies significantly between the various contracting parties, in particular with regard to the insurance companies, which leads to a complex handling process with various interfaces. The recognition of revenue is then performed either with reference to a point in time or a time period, depending on the respective contract arrangement and the pattern of receipt of the benefit of services provided to clients. The Group recognises revenue from pure brokerage services at a point in time, while revenue for services (particularly for sustainable services such as portfolio management, fund management) is recorded over a time period. In the case of time period-based services, manual commission accruals are performed as at the balance sheet date.

In the event of premature loss of brokered insurance policies, commission that has been earned needs be refunded in part (cancellation risk). In this respect, there is a variable transaction price, whose level is estimated on the basis of statistical empirical values for the risk of termination and death.

The materiality of commission income for presenting the results of operations in the consolidated financial statements, the complexity of the handling process, as well as the estimation uncertainties in terms of the level of commission income, represent a particularly key audit matter.

The disclosures of MLP SE regarding recognition of commission income are contained in the sections 7 "Accounting policies" and 9 "Revenue" of the Notes to the consolidated financial statements.

Audit approach

Within the scope of our audit, we used a test of design to gain extensive understanding of the processes and the internal control/monitoring system with regard to ensuring the existence and level of commission income and assessed the related control/monitoring measures to ensure their appropriateness and actual implementation. To this end, we analysed the process documentation and corresponding records, and also conducted surveys with employees from Commission Settlement and Accounting. At significant Group companies we then reviewed the effectiveness of selected control/monitoring measures for determining and ensuring the existence and the correct level of commission income, using performance tests.

In addition to this, we gained an understanding of the development of commission income over time on the basis of our analytical audit procedures within the scope of the statement-based audit procedures. In this regard, we formed our own expected values, set out limits for acceptable deviations and checked whether the recognised commission income in the reporting year is within a tolerable bandwidth - in particular on the basis of year-on-year comparisons and ratios, Additionally, we obtained selected external confirmations for individual Commission statements from contracting parties. We also took random samples and compared individual revenue transactions with the underlying invoicing data, as well as incoming payments. In cases where commission statements, in particular from insurance companies were not available at the time of preparing the consolidated financial statements, we have manually traced the accrual postings for a selected range of transactions as at the balance sheet date.

We gained an understanding of how provisions for cancellation risks are calculated and the corresponding level of commission income is adjusted, We also assessed the relevant calculation parameters, in particular the cancellation rate applied, in terms of their appropriateness and compared them with information made available by the insurance companies.

OTHER INFORMATION

The legal representatives or the Supervisory Board are responsible for the other information. The other information comprises:

  • the separate non-financial report pursuant to Section 289b (3) and 315b of the German Commercial Code (HGB), which is referred to in the combined management report and which will most likely be made available to use after the date of this audit opinion
  • the Group Declaration of Corporate Governance contained in the section "Declaration of Corporate Governance pursuant to §§ 315d, 289f of the German Commercial Code (HGB)" of the consolidated management report
  • the remaining parts of the annual report, with the exception of the audited consolidated financial statements and the combined management report and our audit opinion

Our opinions on the consolidated financial statements and on the combined management report do not cover the other information, and consequently we do not express an opinion or any other form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in so doing, to consider whether the other information

— is materially inconsistent with the consolidated financial statements, with the combined management report or our knowledge obtained in the audit, or — otherwise appears to be materially misstated.

Should we conclude on the basis of the work we have conducted that there is a material misstatement of this other information, we are obliged to report on this fact. We have nothing to report in this connection.

RESPONSIBILITIES OF THE LEGAL REPRESENTATIVES AND OF THE SUPERVISORY BOARD FOR THE CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT

The legal representatives are responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRSs as adopted by the EU, the additional requirements of German commercial law pursuant to Section 315e (1) of the German Commercial Code (HGB) and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position, and financial performance of the Group. Furthermore, the legal representatives are responsible for establishing internal controls, as deemed necessary to enable the preparation of consolidated financial statements that are free from material

misstatements resulting from fraudulent activities (i.e., accounting manipulations and asset misappropriations) or errors.

In preparing the consolidated financial statements, the legal representatives are responsible for assessing the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for accounting on a going concern basis unless there is an intention to liquidate the group or to cease operations, or there is no realistic alternative to doing so.

Furthermore, the legal representatives are responsible for the preparation of the combined management report that, as a whole, provides a true and fair view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the legal representatives are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a combined management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the combined management report.

The Supervisory Board is responsible for overseeing the Group's financial reporting process for the preparation of the consolidated financial statements and of the combined management report.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT

Our objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatements, whether due to fraud or error, and to assess whether the combined management report as a whole provides a true and fair view of the Group's position, and in all material respects, is consistent with the consolidated financial statements and the findings from our audit, whether it complies with the German legal requirements and presents a fair view of the opportunities and risks of future development, as well as to issue an audit opinion that includes our findings on the consolidated financial statements and on the combined management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Section 317 of the German Commercial Code (HGB) and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements may result from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of recipients taken on the basis of these consolidated financial statements and the combined management report.

We exercise professional judgement and maintain professional scepticism throughout the assurance work. We also:

  • identify and assess the risks of material misstatements in the consolidated financial statements and in the combined management report as a result of fraud or error, plan and conduct audit activities in response to these risks and obtain audit certificates that are sufficient and suitable to use as the basis for our audit opinions. The risk of not detecting material misstatements resulting from fraud is higher than the risk of not detecting material misstatements resulting from errors, as fraud may involve collusion, falsifications, intentional omissions, misleading representations or override of internal controls.
  • obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures (systems) relevant to the audit of the combined management report in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of these systems.

  • evaluate the appropriateness of accounting policies used by the legal representatives and the reasonableness of estimates made by the legal representatives and related disclosures.
  • draw conclusions about the appropriateness of the going concern basis of accounting used by the legal representatives and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the combined management report or, if such disclosures are inadequate, to modify our respective opinions, Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern.
  • evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRSs as adopted by the EU, the additional requirements of German commercial law pursuant to Section 315e (1) of the German Commercial Code (HGB).
  • obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express opinions on the consolidated financial statements and on the combined management report. We are responsible for the direction, supervision and performance of the audit of the consolidated financial statements. We remain solely responsible for our opinions.
  • evaluate the consistency of the combined management report with the consolidated financial statements, its conformity with law, and the view of the Group's position it provides.
  • perform audit procedures on the prospective information presented by the legal representatives in the combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the legal representatives as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.

We communicate with those charged with governance, inter alia regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We provide those charged with governance with a statement that we have complied with the relevant independence requirements and communicate with them all relationships and other matters that may reasonably be expected to affect our independence, and, where applicable, the actions taken or safeguards applied to eliminate independence threats.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current reporting period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

OTHER LEGAL AND REGULATORY REQUIREMENTS

REPORT ON THE AUDIT OF THE ELECTRONIC REPRODUCTIONS OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT FOR PUBLICATION PURSUANT TO SECTION 317 (3A) OF THE GERMAN COMMERCIAL CODE (HGB)

Opinion

We have performed assurance work in accordance with Section 317 (3a) of the German Commercial Code (HGB) to obtain reasonable assurance about whether the reproduction of the consolidated financial statements and the combined management report (hereafter the "ESEF documents) contained in the file "MLP_SE_KA_KLB-2024-12-31.zip " and prepared for publication purposes complies in all material respects with the requirements of Section 328 (1) of the German Commercial Code (HGB) for the electronic reporting format ("ESEF format"). In accordance with German legal requirements, this assurance only extends to the conversion of the information contained in the consolidated financial statements and the combined management report into the ESEF format and therefore relates neither to the information contained in this reproduction nor any other information contained in the above-mentioned electronic file.

In our opinion, the reproduction of the consolidated financial statements and the combined management report contained in the above-mentioned electronic file and prepared for publication purposes complies in all material respects with the requirements of Section 328 (1) of the German Commercial Code (HGB) for the electronic reporting format. Other than this opinion and our opinions on the accompanying consolidated financial statements and on the accompanying combined management report for the financial year from January 1, 2024, to December 31, 2024, included in the preceding "REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT", we do not express any opinion on the information contained in these reproductions or on the other information included in the aforementioned file.

Basis for the opinion

We conducted our assurance work of the reproductions of the consolidated financial statements and the combined management report contained in the above-mentioned file in accordance with Section 317 (3a) of the German Commercial Code (HGB) and in compliance with the IDW Assurance Standard: Assurance in accordance with Section 8 317 (3a) of the German Commercial Code (HGB) on the electronic reproduction of financial statements and management reports prepared for publication purposes (IDW PS 410 (06.2022)). Accordingly, our responsibilities are further described in the section "Auditor's responsibilities for the audit of the consolidated financial statements and of ESEF documents". Our audit firm has applied the requirements of the IDW Quality Management Standards, which implement the |AASB's International Standards on Quality Management.

Responsibilities of the legal representatives and of the Supervisory Board for the ESEF documents

The company's legal representatives are responsible for the preparation of the ESEF documents including the electronic reproduction of the consolidated financial statements and the combined management report in accordance with Section 328 (1) Sentence 4 No. 1 of the German Commercial Code (HGB) and for the tagging of the consolidated financial statements in accordance with Section 328 (1) Sentence 4 No. 2 of the German Commercial Code (HGB).

In addition, the company's Management is responsible for the internal controls they consider necessary to enable the preparation of ESEF documents that are free from material - intentional or unintentional - non-compliance with the requirements of Section 328 (1) of the German Commercial Code (HGB) for the electronic reporting format.

The Supervisory Board is responsible for overseeing the process of preparing the ESEF documents as part of the financial reporting process.

Auditor's responsibilities for the audit of the consolidated financial statements of ESEF documents

Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material - intentional or unintentional - non-compliance with the requirements of Section 328 (1) of the German Commercial Code (HGB). We exercise professional judgement and maintain professional scepticism throughout the assurance work. We also:

  • identify and assess the risks of material intentional or unintentional noncompliance with the requirements of Section 328 (1) of the German Commercial Code (HGB), design and perform assurance procedures responsive to those risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance opinion.
  • obtain an understanding of internal control relevant to the assurance of the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.
  • Evaluate the technical validity of the ESEF documents, i.e. whether the electronic file containing the ESEF documents meets the requirements of Commission Delegated Regulation (EU) 2019/815 in the version applicable as at the balance sheet date on the technical specification for this electronic file.
  • Evaluate whether the ESEF documents enable a XHTML reproduction with content equivalent to the audited consolidated financial statements and to the audited combined management report.
  • Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) enables an appropriate and complete machine-readable XBRL copy of the XHTML reproduction in accordance with Articles 4 and 6 of the Commission Delegated Regulation (EU) 2019/815 in the version applicable as at the balance sheet date.

FURTHER INFORMATION PURSUANT TO ARTICLE 10 OF THE EU AUDIT REGULATION

We were elected as auditor by the annual general meeting on June 27, 2024. We were engaged by the Supervisory Board on November 13, 2024. We have been the group auditor of MLP SE without interruption since the financial year 2021.

We declare that the opinions expressed in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).

OTHER MATTERS — USE OF THE AUDITOR'S REPORT

Our auditor's report should always be read in conjunction with the audited consolidated financial statements and the audited combined management report as well as the audited ESEF documents. The consolidated financial statements and the combined management report converted to ESEF format - including the versions to be entered in the company register - are merely electronic reproductions of the audited consolidated financial statements and the audited combined management report and do not replace them. In particular, the ESEF report and our assurance opinion contained therein can only be used in conjunction with the audited ESEF documents provided in electronic form.

GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT

The German public auditor responsible for the engagement is Lukas Rist.

Frankfurt am Main, March 17, 2025

BDO AG Wirtschaftsprüfungsgesellschaft

Otte Rist Auditor Auditor

Executive Bodies of MLP SE

Executive Board Supervisory Board

Dr Uwe Schroeder-Wildberg, CEO

Digitalisation Communication (incl. Investor Relations) Clients and Sales Marketing Sustainability Human Resources Strategy Appointed until December 31, 2027

Manfred Bauer

Infrastructure Product Purchasing and Management Appointed until April 30, 2025

Reinhard Loose

Compliance Controlling Internal Audit IT Group Accounting Legal Affairs Risk Management Appointed until January 31, 2029 Sarah Rössler, Chairwoman Elected until 2028

Dr Andreas Freiling, Deputy Chairman Elected until 2028

Bernd Groß Elected until 2028

Matthias Lautenschläger Elected until 2028

Ursula Blümer Employee Representative, Elected until 2028

Monika Stumpf Employee Representative, Elected until 2028

MLP Annual Report 2024

Financial calendar 2025

March

March 13, 2025 Publication of the results for the financial year 2024 Online annual press and analyst conference

March 27, 2025 Publication of the annual report for the financial year 2024

May

May 15, 2025 Publication of the results for Q1 2025

June

June 25, 2025 Annual General Meeting of MLP SE

August

August 14, 2025 Publication of the results for H1 and Q2 2025

November

November 13, 2025 Publication of the results for the first nine months and Q3 2025

Imprint and Contact

Imprint

MLP SE Alte Heerstraße 40 D-69168 Wiesloch Germany Phone: +49 (0) 6222 308 0 Fax +49 (0) 6222 308 9000

Executive Board

Dr. Uwe Schroeder-Wildberg (CEO of MLP SE) Manfred Bauer (Member of the Executive Board at MLP SE) Reinhard Loose (Member of the Executive Board at MLP SE)

Chairwoman of the Supervisory Board Sarah Rössler

Commercial Register Mannheim Court of Registration HRB 728672

Value Added Tax Identification Number DE 143449956

Contact

Investor Relations

[email protected] Phone +49 (0) 6222 308 8320 Fax +49 (0) 6222 308 1131

Media Relations

[email protected] Phone +49 (0) 6222 308 8310 Fax +49 (0) 6222 308 1131

Appropriate Regulatory Authorities

Federal Financial Supervisory Authority

(Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin)1 Graurheindorfer Str.108 D-53117 Bonn Marie-Curie-Str. 24-28 D-60439 Frankfurt am Main www.bafin.de 1 Appropriate regulatory authority according to the German Banking Act (Kreditwesengesetz, KWG)

European Central Bank2

Sonnemannstraße 20 D-60314 Frankfurt am Main www.ecb.europa.eu 2 Appropriate regulatory authority according to the Capital Requirements Regulation (CRR)

© MLP SE

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