MLP SE

Quarterly Report • Nov 9, 2023

Quarterly Group Statement for the first nine months of 2023

QUARTERLY GROUP STATEMENT FOR THE FIRST NINE MONTH OF 2023 1

MLP key figures

All figures in € million	Q3 2023	Q3 2022	9M 2023	9M 2022	Change in %
MLP Group
Total revenue	209.7	202.1	684.6	674.7	1.5%
Revenue	205.4	197.7	665.0	659.2	0.9%
Other revenue	4.3	4.4	19.6	15.5	26.3%
Earnings before interest and taxes (EBIT)	7.8	8.2	45.2	52.2	–13.4%
EBIT margin (in %)	3.7%	4.0%	6.6%	7.7%	–
Net profit	5.4	3.9	29.0	34.9	–16.8%
Earnings per share (diluted/basic) (in €)	0.06	0.04	0.30	0.32	–6.3%
Cash flow from operating activities	51.2	–168.4	2.6	–254.6	–101.0%
Capital expenditure	3.2	12.0	10.2	18.8	–45.9%
Shareholders' equity	–	–	521.8	525.5 ¹	–0.7%
Equity ratio (in %)	–	–	13.8%	13.9% ¹	–
Balance sheet total	–	–	3,776.1	3,784.6 ¹	–0.2%
Private clients (families)	–	–	578,200	569,200 ¹	1.6%
Corporate and institutional clients	–	–	27,100	28,400 ¹	–4.6%
Consultants	–	–	2,030	2,100 ¹	–3.3%
Branch offices	–	–	128	130 ¹	–1.5%
University teams	–	–	98	102 ¹	–3.9%
Employees	–	–	2,351	2,265	3.8%
Brokered new business
Old-age provision (premium sum)	950.4	854.8	2,615.2	2,223.1	17.6%
Borrowings (loan volumes)	297.3	341.8	901.5	1,856.4	–51.4%
Assets under management (in € billion)	–	–	55.9	54.3 ¹	2.9%
Non-life insurance (premium volume)	–	–	689.0	632.2 ¹	9.0%
Real estate (brokered volume)	46.3	92.0	118.1	360.9	–67.3%

¹ As of December 31, 2022

Introductory notes 3
The first nine months of 2023 at a glance 3
Profile 4
Quarterly Group Statement for the first nine months of 2023 5
Fundamental principles of the Group 5
Changes in organisation and administration 5
Changes in corporate structure 6
Economic report 8
Business performance 8
Results of operations 10
Financial position 15
Net assets 16
Segment report 18
Employees and self-employed client consultants 23
Forecast 24
Anticipated business development 24
Prognoses 25
Consolidated income statement and consolidated statement of comprehensive income 26
Consolidated Statement of financial position 28
Condensed consolidated statement of cash flow 29
Consolidated statement of changes in equity 30
Revenue 32
Information regarding reportable business segments (quarterly comparison) 33
Information regarding reportable business segments (9M comparison) 34
Financial calendar 2023 35
Financial calendar 2024 35

Introductory notes

This Quarterly Group Statement outlines the significant events and business transactions that occurred during the first nine months and the third quarter of 2023. Additionally, it provides updated forecast-based information from the last joint management report. The Interim Group Report for the first six months of 2023, as well as the Annual Report 2022 are available on our homepage at www.mlp-se.com, as well as www.mlp-annualreport.com. In the description of the MLP Group's financial position, net assets and results of operations pursuant to International Financial Reporting Standards (IFRS), the previous year's figures are given in brackets. The information in this Quarterly Group Statement has neither been verified by an auditor nor subjected to a review.

The first nine months of 2023 at a glance

• MLP sets new record for total revenue at € 684.6 million (€ 674.7 million), Q3 total revenue also up at € 209.7 million (€ 202.1 million) – pronounced stability in the overall business, interest rate business remains very strong
• Non-life insurance with particularly strong gains; significant growth in old-age provision and health insurance – loans & mortgages with small signs of improvement in Q3, but, as anticipated and similar to real estate, down significantly after nine months due to the challenging market environment
• Earnings before interest and taxes (EBIT) at € 45.2 million (€ 52.2 million) factors contributing to the decline include new trainee programme and, above all, inflation-based cost increases
• Forecast for 2023 confirmed: EBIT of € 75 to 85 million in an environment that remains challenging
• Mid-term planning to the end of 2025 reaffirmed: significant increase in EBIT anticipated

Profile

The MLP Group is the partner for all financial matters

The MLP Group and its brands Deutschland.Immobilien, DOMCURA, FERI, MLP, RVM and TPC is the financial services provider for private, corporate and institutional clients. Special added value is created by networking the various perspectives and areas of expertise – enabling clients to reach better financial decisions. To this end, the MLP Group competently combines personal and digital offers. Several of the brands also offer selected products, services and technology 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 Investment management for institutional investors and high net worth individuals
• MLP Financial consulting for discerning clients
• RVM The insurance broker for SMEs
• TPC The consultant for employers in all questions relating to benefits

Since its foundation, MLP has consistently striven to establish long-term relationships with its clients. This requires profound understanding of their individual requirements. An intensive transfer of knowledge and expertise takes place within the MLP 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. Economic success also forms the basis for accepting social responsibility.

The Group was founded in 1971 and manages assets of € 55.9 billion for around 578,200 private and 27,100 corporate and institutional clients as well as non-life insurance portfolio volumes of around € 689 million.

Quarterly Group Statement for the first nine months of 2023

The values disclosed in the following quarterly Group statement have been rounded to one decimal place. As a result, differences to reported total amounts may arise when adding up the individual values.

FUNDAMENTAL PRINCIPLES OF THE GROUP

You can find detailed information on our business model, our corporate structure and our control system in the 2022 Annual Report of the MLP Group at www.mlp-annual-report.com.

Changes in organisation and administration

Compared to the basic principles of the Group described in the 2022 MLP Annual Report the following changes occurred during the reporting period.

On the basis of the resolution of the Annual General Meeting from June 24, 2021 to buy back own shares, a total of 604,792 shares with a pro rata amount of € 1.00 each in the share capital were bought back at an average price of € 5.21 per share in the time period from January 2 to March 1, 2023. This corresponds to around 0.55 % of our share capital of € 109,334,686. The buyback was used to serve a participation programme for our self-employed commercial agents and branch office managers. The respective buybacks were published in detail on our company's website. Following transfer of the shares to the eligible participants, a total of 1,328 shares remain in the company's own portfolio.

As scheduled, the membership on the MLP SE Supervisory Board of Dr. Peter Lütke-Bornefeld and Dr. Claus-Michael Dill, as well as Ms. Sarah Rössler and Mr. Matthias Lautenschläger as shareholder representatives, ended with conclusion of the Annual General Meeting on June 29, 2023. The Annual General Meeting elected Ms. Sarah Rössler, Dr. Andreas Freiling, Mr. Bernd Groß and Mr. Matthias Lautenschläger to the Supervisory Board as shareholder representatives. At the same time, the term in office of Mr. Alexander Beer and Ms. Monika Stumpf as employee representatives also ended. The workforce elected Ms. Ursula Blümer and Ms. Monika Stumpf to the Supervisory Board as employee representatives. In the constitutive meeting of the newly elected Supervisory Board, the members elected Ms. Sarah Rössler as Chairperson and Dr. Andreas Freiling as Vice Chairperson. You can find the CVs of all newly elected members of the Supervisory Board on our website at: mlp-se.com/investors/corporate-governance/executive-board-and-supervisory-board/.

Changes in corporate structure

Compared to the basic principles of the Group described in the 2022 MLP Annual Report the following changes occurred during the reporting period.

In Q1 2023, MLP Finanzberatung SE, Wiesloch, founded a 100 % subsidiary called MLP Startup GmbH with its registered office in Wiesloch. A control and profit transfer agreement was concluded with this new company on February 20, 2023 and it was then incorporated in the consolidated financial statements after starting business operations in the third quarter. For the first time, the profit transfer obligation applies to the entire profit recorded in the financial year 2023. The shareholders of both contracting parties approved the agreement in an extraordinary Annual General Meeting and a Shareholders' Meeting on March 6, 2023. The MLP Startup GmbH acts as a training company for the new consultant trainee model.

On February 21, 2023, a control and profit transfer agreement was also concluded between RVM GmbH, Wiesloch, and Dr. Schmitt GmbH Würzburg, Würzburg. The profit transfer obligation applies for the first time to the entire profit from the financial year 2023. Approval from both shareholder meetings was granted on March 21, 2023 and the entry into the Commercial Register of Dr. Schmitt GmbH Würzburg, Würzburg, was completed on May 9, 2023.

Within the Deutschland.Immobilien Group, insolvency proceedings were initiated on the assets of Convivo Wohnparks Deutschland.Immobilien Wittmund GmbH & Co. KG, Hanover, on March 9, 2023, as well as at Convivo Wohnparks Deutschland.Immobilien GmbH, Hanover, on April 4, 2023. Companies of the Deutschland.Immobilien Group hold a 50 % stake in each of them.

In the second quarter, Dr. Schmitt GmbH Würzburg concluded a merger agreement with Dr. Schmitt Versicherungsmakler GmbH, Würzburg, and Bavaria-Assekuranz Versicherungsmakler GmbH, based in Nuremberg, with effect from January 1, 2023. The merger of Dr. Schmitt GmbH Würzburg with Dr. Schmitt Versicherungsmakler GmbH and the merger of Dr. Schmitt GmbH Würzburg with Bavaria-Assekuranz Versicherungsmakler GmbH have been entered in the responsible Commercial Registers of the companies in the second quarter and the third quarter, respectively.

Within the Deutschland.Immobilien Group, Web Deutschland.Immobilien GmbH, Hanover, was merged with Vertrieb Deutschland.Immobilien GmbH, Hanover, with effect from January 1, 2023. The merger was entered in the Commercial registers of the companies on April 26, 2023. As of May 25, 2023, Projekte Deutschland.Immobilien GmbH, Hanover, once again holds a 100 % stake in each Sechste Projekte Deutschland.Immobilien GmbH, Hanover, and Zehnte Projekte 2 Deutschland.Immobilien GmbH, Hanover. On June 21, 2023, insolvency proceedings were initiated on the assets of CP 135. Grundstücks GmbH & Cowere KG, Bremen, in which one company of the Deutschland.Immobilien Group holds a 50 % stake.

The Commercial Register entry for removing Limmat Wealth AG, Zurich was made on June 28, 2023. With this step, the merger of Limmat Wealth AG into FERI (Schweiz) AG, Zurich, was completed. Within the FERI Group, FERI AG changed its name to FERI Management AG as of July 7, 2023. This was followed by the change in legal form of FERI Trust GmbH to FERI Trust AG on July 17, 2023. The subsequent change of name from FERI Trust AG to FERI AG was effected on July 19, 2023. All of the companies are based in Bad Homburg. Most recently, FERI Trust (Luxembourg) S.A., Luxembourg was renamed FERI (Luxembourg) S.A., Luxembourg on August 2, 2023.

In addition to this, the following changes were made within the Deutschland.Immobilien Group. Since August 22, 2023, Projekte Deutschland.Immobilien GmbH, Hanover, has once again retained a 100% stake in Projekte Deutschland.Immobilien Stetten GmbH, Grünwald. Projekte Deutschland.Immobilien GmbH has no longer held any stake in Projekte Deutschland.Immobilien Moosthenning GmbH, Bocholt, Projekte Deutschland.Immobilien Kißlegg GmbH, Bocholt, or STW Magdeburg GmbH, Bocholt since September 22, 2023. Prior to this, Projekte Deutschland.Immobilien GmbH had held a 11 % stake in each of these companies. In addition to this, Projekte Deutschland.Immobilien GmbH concluded a merger agreement with Pflegeprojekt Rosenberg UG, Minden, with effect from January 1, 2023. The merger of Pflegeprojekt Rosenberg UG into Projekte Deutschland.Immobilien GmbH was entered in the Commercial Register of Pflegeprojekt Rosenberg UG on July 21, 2023 and in the Commercial Register of Projekte Deutschland.Immobilien GmbH on November 1, 2023.

MLP SE, Wiesloch, signed a control agreement with MLP Banking AG, Wiesloch, on April 3, 2023. The agreement became effective following approval by the Annual General Meetings of MLP SE and MLP Banking AG and upon entry into the relevant Commercial Register for MLP Banking AG on September 27, 2023.

Business performance

Despite significant external pressures associated with overall economic developments, uncertainty among consumers, as well as factors such as inflation, interest rate rises and global crises, MLP was able to maintain its successful course in the first nine months of the financial year. In fact, the Group increased total revenue to a new high of € 684.6 million (€ 674.7 million). MLP's broad and strategically diversified positioning once again proved invaluable in ensuring the stability of the overall business.

A significant increase in revenue was again recorded in the interest rate business (+263.7 %). Due to the developments in market, however, revenue from real estate development continued to display a significant downward trend compared with the very strong equivalent period in the previous year (–54.4 %). The varying performances displayed in the consulting fields offset one another, so it was possible to maintain commission income at around the previous year's good level (–1.4 %).

Non-life insurance revenue improved significantly by 13.9 % and the premium volume rose to a new record level of € 689.0 million. Health insurance revenue also increased significantly (+7.8 %), as did old-age provision revenue (+6.0 %).

Revenue in the wealth management business fell by –4.8 % to € 228.5 million (€ 240.1 million). This represented a quarter-to-quarter improvement. At € 78.1 million, Q3 was already at the previous year's level (€ 78.6 million). In light of negative trends on the capital markets, however, performance fees remained limited. Furthermore, the attractiveness of alternative asset classes, driven by higher interest rates, also played a role. Assets under management as of September 30, 2023 were € 55.9 billion, which is above the previous year's level.

First signs of an upturn in the loans and mortgages consulting field started to emerge in the third quarter. As anticipated, revenue in loans and mortgages (–36.3 %), as well as real estate brokerage (–71.3 %) suffered further significant declines after the first nine months of the year due to the difficult market environment.

Other income rose by 26.3 %.

Development of assets under management (all figures in € billion)

Development of non-life insurance premium volume (all figures in € million)

While administration costs rose, real estate development expenses declined in line with the respective revenue development. Commission expenses also declined over the previous year's figure. Interest expenses, on the other hand, increased significantly as a result of higher interest rates.

Due to framework conditions that remain challenging in part of the markets, earnings before interest and taxes (EBIT) were € 45.2 million (€ 52.2 million). This decline in earnings can largely be attributed to the start of investments in the announced and successfully launched trainee programme for attracting MLP consultants, one-off effects and in particular inflation-based cost increases.

The first nine months of the year, also including the first quarter, have become more significant in the last few years as a result of MLP's strategic further development. However, due to the seasonality of our business the fourth quarter continues to deliver significant profit contributions, particularly in the field of old-age provision.

New clients

In the period from January 1 to September 30, 2023, MLP was able to acquire 14,100 (January 1 to September 30, 2022: 13,700) new family clients.

As per the end of September 30, 2023, the MLP Group served a total of 578,200 family clients (December 31, 2022: 569,200) and 27,100 corporate and institutional clients (December 31, 2022: 28,400).

Results of operations

Development of total revenue

During the first nine months of the financial year, total revenue generated by the MLP Group rose by 1.5 % compared to the same period of the previous year, reaching a new record high of € 684.6 million (€ 674.7 million).

Sales revenues increased by 0.9 % to € 665.0 million (€ 659.2 million). As a result of the significantly higher interest rate, interest income increased by 263.7 % to € 45.7 million (€ 12.6 million). On the other hand, revenue from real estate development declined significantly to € 16.0 million (€ 35.0 million) due to current market developments. Commission income declined slightly by 1.4 % to € 603.3 million (€ 611.6 million), with the developments in the various consultancy fields once again balancing each other out.

Commission income in wealth management declined by –4.8 % to € 228.5 million (€ 240.1 million). This can be attributed to the rather tense mood currently being encountered on the capital markets, as well as the lower performance fees associated with this. The increased attractiveness of other asset classes as a result of the higher interest rate is also playing a part here. Assets under management were € 55.9 billion as of September 30, 2023 and were therefore above the figure recorded at the end of the 2022 (December 31, 2022: € 54.3 billion).

Non-life insurance revenue rose significantly by 13.9 % to € 161.8 million (€ 142.1 million). This can be attributed to the positive effect of premium indexations due to increased building costs and premium adjustments. The fact that Dr. Schmitt GmbH Würzburg was included for the first time in the figures for nine full months represented another positive factor, having only been consolidated for the first time on April 1, 2022 in the previous year. In addition, the mergers into Dr. Schmitt GmbH Würzburg had a positive impact in relation to the previous year. As of September 30, 2023, the premium volume in the MLP Group increased to a new record level of € 689.0 million (December 31, 2022: € 632.2 million).

Old-age provision revenue rose by 6.0 % to € 144.4 million (€ 136.3 million). This was also thanks to particularly good development in the field of occupational pension provision. At € 2,615.2 million (€ 2,223.1 million), total premiums were 17.6 % above the same period of the previous year.

Health insurance recorded significant gains with revenue of € 44.8 million (€ 41.6 million), reflecting a rise of 7.8 % over the previous year. This once again reflects the heightened awareness of the importance of health provision.

The assessment of revenue performance in the real estate brokerage and loans & mortgages business fields must be viewed within the context of persistently challenging market conditions. Revenue from real estate brokerage declined significantly by 71.3 % to a value of € 8.9 million (€ 31.0 million). The brokered real estate volume declined to € 118.1 million (€ 360.9 million). Revenue from loans and mortgages also experienced a substantial decline, dropping to € 10.3 million (€ 16.1 million).

Other commission and fees were € 4.7 million, following € 4.6 million in the previous year.

Other income rose significantly to € 19.6 million (€ 15.5 million). This figure includes payments from product partners for attending and participating in the Main Seminar.

Looking at the third quarter of 2023 alone, total revenue rose slightly by 3.8 % to € 209.7 million (Q3 2022: € 202.1 million).

Revenue increased by 3.9 % to € 205.4 million (€ 197.7 million). The interest rate business grew considerably by 260.0 % in the third quarter and contributed a share of € 18.2 million following on from € 5.1 million in the previous year. On the other hand, revenue from real estate development declined significantly by 88.3 % to € 1.0 million (€ 8.6 million). Commission income in the third quarter was € 186.1 million (€ 184.0 million), with the developments in the various consultancy fields once again serving to virtually balance each other out.

At € 78.1 million (€ 78.6 million), revenue from the wealth management business of was only marginally below the previous year's level. Non-life insurance displayed strong revenue growth to € 34.0 million (€ 29.3 million). Old-age provision revenue rose to € 51.3 million (€ 49.9 million). A significant increase to € 15.3 million was recorded in health insurance (€ 13.5 million). The persistently challenging market conditions in the real estate brokerage and loans & mortgages business continued to be felt in Q3, resulting in a decline in revenue from real estate brokerage to € 3.4 million (€ 6.9 million) and loans & mortgages declining to € 3.3 million (€ 4.6 million).

Other commission and fees were € 0.8 million, following € 1.1 million in the previous year.

Other income remained at the previous year's level of € 4.3 million (€ 4.4 million).

Once again, the divergent trends in the various consultancy fields effectively offset each other in the third quarter.

All figures in € million	Share in %	9M 2023	Share in %	9M 2022	Change in %
Wealth management	37.9%	228.5	39.2%	240.1	–4.8%
Non-life insurance	26.8%	161.8	23.2%	142.1	13.9%
Old-age provision	23.9%	144.4	22.3%	136.3	6.0%
Health insurance	7.4%	44.8	6.8%	41.6	7.8%
Loans and mortgages	1.7%	10.3	2.6%	16.1	–36.3%
Real estate brokerage	1.5%	8.9	5.1%	31.0	–71.3%
Other commissions and fees	0.8%	4.7	0.7%	4.6	2.2%
Total commission income		603.3		611.6	–1.4%
Revenue from real estate development		16.0		35.0	–54.4%
Interest income		45.7		12.6	263.7%
Total		665.0		659.2	0.9%

Breakdown of revenue

Analysis of expenses

Inventory changes were +€ 0.9 million (+€ 3.7 million) in the reporting period. These result from real estate development and represent the change in asset values generated in the current phase of the projects within the reporting period. This item will increase as the respective projects progress and then decline again with the gradual sale of project units.

Commission expenses primarily comprise performance-linked commission payments to our MLP consultants. They represent the largest item under expenses. This item also includes non-life insurance commissions paid in the DOMCURA segment, as well as commissions paid in the Industrial Broker segment. Variable expenses result from the compensation of brokerage services in the non-life insurance business. Added to these are the commissions paid for wealth management in the FERI segment, which in particular result from the activities in the field of fund administration. In this business segment they are primarily accrued due to compensation of the depository bank and fund sales. Commission expenses from real estate brokerage are also accrued in the Deutschland.Immobilien segment. Similarly to the development of commission income, commissions paid of € 307.1 million (€ 321.5 million) were below the previous year's level. Real estate development expenses decreased significantly to € 14.3 million (€ 31.3 million), in line with revenue development. Interest expenses increased to € 9.9 million as a result of higher interest rates (€ 0.3 million).

Gross profit (defined as total revenue less commission expenses, real estate development expenses and interest expenses, as well as inventory changes) improved to € 354.3 million (€ 325.3 million).

The item Remeasurement gains or losses/Loan loss provisions declined from –€ 2.1 million to € 0.7 million.

The administrative expenses of the MLP Group (defined as the sum of personnel expenses, depreciation/amortisation and impairment, as well as other operating expenses) were € 310.0 million (€ 273.9 million) and therefore above the previous year's level. Overall, MLP continued its investments in digitalisation and further expansion of its business areas in the first nine months of 2023. The figure also includes expenses from Dr. Schmitt GmbH Würzburg, which first was consolidated on April 1, 2022 in the previous year, as well as higher expenses following the mergers into Dr. Schmitt GmbH Würzburg and a oneoff balance sheet effect resulting from the mergers of individual companies. MLP Startup GmbH, which acts as a training company for the new consultant trainee model, has also been contributing to this since the third quarter. It also includes expenses relating to an inflation bonus and salary rises paid to employees, as well as expenses incurred in connection with the Anniversary Main Seminar event. In the previous year, the Main Seminar could not take place due to the coronavirus pandemic. The individual items developed as follows: Personnel expenses rose to € 152.9 million (€ 137.2 million). Depreciation/amortisation and impairments remained unchanged at € 23.6 million (€ 23.6 million). Other expenses increased to € 133.4 million (€ 113.1 million).

Total earnings from investments accounted for using the equity method were € 0.2 million (€ 2.9 million). In the previous year, this figure included higher earnings of MLP Hyp GmbH. As a joint venture with Interhyp, these earnings are disclosed as earnings from investments accounted for using the equity method.

In the third quarter alone, commission expenses declined marginally by to € 95.3 million (€ 96.2 million). Expenses from real estate development fell sharply to € 3.4 million (€ 10.3 million), whereas interest expenses rose substantially to € 5.2 million (€ 0.1 million).

Administrative expenses were € 101.9 million (€ 89.0 million) in Q3 and as such slightly below the previous year's level. Personnel expenses increased to € 50.6 million (€ 43.7 million). Contributing factors included the commencement of operations by MLP Startup GmbH. Depreciation/amortisation and impairments remained stable at € 8.0 million (€ 8.0 million). Other expenses rose to € 43.3 million (€ 37.3 million). Among other things, this figure includes the effect of an impairment loss related to a non-consolidated company.

Earnings from investments accounted for using the equity method were € 0.1 million (€ 0.7 million).

Earnings trend

Despite continuing to operate in challenging framework conditions in parts of the markets, earnings before interest and taxes (EBIT) in the first nine months of 2023 were € 45.2 million (€ 52.2 million). Earnings after nine months are therefore below the same period in the previous year. This can largely be attributed to general costs increases, in particular those associated with rising inflation. Another factor was the start of investments in the trainee programme that has been launched to improve the recruitment of MLP consultants.

EBIT development (all figures in € million)

The financial result was –€ 1.8 million in the reporting period compared to –€ 2.0 million in the previous year. Earnings before taxes (EBT) increased to € 43.4 million (€ 50.2 million). The tax rate was 33.1 % (30.5 %). Group net profit was € 29.0 million (€ 34.9 million). The diluted and basic earnings per share were € 0.30 (€ 0.32).

Looking at the third quarter in isolation, EBIT was € 7.8 million, following € 8.2 million in the same period of the previous year. Third quarter earnings were in particular curbed by the effects in administration costs, whereas total revenue was actually above the previous year's figure. The financial result increased to € 0.6 million (–€ 0.7 million). Therefore EBT was € 8.3 million, following € 7.5 million in the previous year. Group net profit was € 5.4 million (€ 3.9 million).

Structure and changes in earnings in the Group

All figures in € million	9M 2023	9M 2022	Change in %
Total revenue	684.6	674.7	1.5%
Gross profit 1	354.3	325.3	8.9%
Gross profit margin (in %)	51.8%	48.2%	–
EBIT	45.2	52.2	–13.4%
EBIT margin (in %)	6.6%	7.7%	–
Financial result	–1.8	–2.0	11.6%
EBT	43.4	50.2	–13.5%
EBT margin (in %)	6.3%	7.4%	–
Income taxes	–14.4	–15.3	6.1%
Net profit	29.0	34.9	–16.8%
Net margin (in %)	4.2%	5.2%	–

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

Financial position

Aims of financial management

You can find detailed information on the objectives of financial management in the 2022 Annual Report of the MLP Group at www.mlp-annual-report.com.

Financing analysis

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. Our non-current assets are financed by our shareholders' equity and non-current liabilities. Current liabilities due to clients and banks in the banking business represent further refinancing funds that are generally available to us in the long term.

As of September 30, 2023, liabilities due to clients and financial institutions in the banking business of € 2,815.7 million (December 31, 2022: € 2,770.5 million) were offset on the assets side of the balance sheet by receivables from clients and financial institutions in the banking business of € 1,994.0 million (December 31, 2022: € 1,902.5 million). In addition to this, MLP maintains a high level of cash and cash equivalents of € 958.6 million (December 31, 2022: € 961.2 million).

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

Liquidity analysis

Cash flow from operating activities increased to € 2.6 million following ‒€ 254.6 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 changed from –€ 85.4 million to € 44.2 million. In the reporting period, investments in fixed income securities decreased, and mature time deposits were only reinvested to a limited extent.

As at the end of the first nine months of 2023, the MLP Group has access to cash holdings of around € 1,039 million. A good level of liquid funds therefore remains available. Thus, there are sufficient cash reserves available to the MLP Group. Alongside cash holdings, free lines of credit are also in place.

Capital expenditure analysis

At € 10.2 million (€ 18.8 million), the investment volume of the MLP Group of the first nine months of 2023 was below the previous year's level. The largest share of capital expenditure took place in the Financial Consulting segment with € 3.3 million (€ 3.3 million). The majority of the remaining funds invested was spread across the segments of DOMCURA at € 3.0 million (€ 2.9 million), Holding at € 2.4 million (€ 10.9 million) and FERI at € 0.9 million (€ 1.0 million). Investments in operating and office equipment, as well as hardware and IT equipment represented one focus here. Advance payments for construction projects in the pipeline represented another focus.

Net assets

Analysis of the asset and liability structure

As of September 30, 2023, the balance sheet total of the MLP Group declined slightly to € 3,776.1 million (December 31, 2022: € 3,784.6 million).

On the assets side of the balance sheet, intangible assets fell to € 230.7 million (December 31, 2022: € 234.5 million). Property, plant and equipment rose to € 137.7 million (December 31, 2022: € 136.6 million). Investments accounted for using the equity method decreased to € 2.0 million (December 31, 2022. € 4.7 million). This decline is a result of the regular dividend payout of MLP Hyp GmbH to MLP Finanzberatung SE. Associated with this is the impairment inherent in this item. The pro rata earnings for 2023 displayed less strong growth in comparison.

Receivables from clients in the banking business increased to € 1,212.0 million (December 31, 2022: € 1,149.3 million). This increase is essentially due to the rise in own-resource loans and was offset by the decline in promissory note bonds.

Receivables from banks in the banking business rose to € 782.1 million (December 31, 2022: € 753.2 million). This increase is essentially the result of an increased investment volume in time deposits.

At € 180.9 million, financial investments are at a significantly lower level than at the end of the financial year 2022 (€ 243.6 million). This is largely due to the decline in time deposit investments at MLP SE. The "Inventories" item disclosed in the balance sheet essentially represents the assets of the project enterprises within the DI Group. As of September 30, 2023, € 52.0 million were reported under this balance sheet item (December 31, 2022: € 51.9 million). Other receivables and assets decreased to € 206.8 million (December 31, 2022: € 237.7 million). This item essentially contains commission receivables from insurers and other product partners resulting from the brokerage of insurance products. The decrease can therefore be attributed to lower commission receivables due from insurance companies, as well as lower receivables from the underwriting business. Due to the typically strong year-end business, these commission receivables increase considerably at the end of the year and then decline again during the course of the following financial year.

At € 958.6 million (December 31, 2022: € 961.2 million), cash and cash equivalents were slightly below the previous year's level.

As of the reporting date of September 30, 2023, shareholders' equity of the MLP Group declined to € 521.8 million (December 31, 2022: € 525.5 million). Following the acquisition of a majority stake in the DI Group in 2019, non-controlling interests are now disclosed in the balance sheet under shareholders' equity. As of September 30, 2023, they were –€ 4.0 million (December 31, 2022: –€ 1.9 million). The balance sheet equity ratio was 13.8 % (December 31, 2022: 13.9 %).

Provisions fell slightly to € 86.5 million (December 31, 2022: € 97.6 million). This decrease is mainly attributable to the reductions in provisions for client support commission after they were paid.

Liabilities due to clients in the banking business increased to € 2,675.9 million (December 31, 2022: € 2,633.5 million) and in particular reflect a rise in client deposits.

Liabilities due to banks in the banking business rose to € 139.8 million (December 31, 2022: € 137.0 million).

Other liabilities declined to € 312.6 million (December 31, 2022: € 353.1 million). This decrease can predominantly be attributed to lower liabilities due to MLP consultants, banks and other providers of debt capital.

Segment report

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 was generated from the respective consulting fields in these segments.

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

All banking services for both private and corporate clients, from wealth management, through accounts and cards, to the interest rate business, are brought together in the Banking segment. As such, 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.

The DOMCURA segment primarily generates revenue from the brokering of non-life insurance. DOMCURA's business model is characterised by a high degree of seasonality during the year. Accordingly, the segment records comparably high earnings in the first quarter of each year along with high sales revenues. This is then typically followed by a loss from Q2 to Q4.

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

The Industrial Broker segment primarily generates revenue from the non-life insurance consulting field through brokerage of insurance policies for industrial and commercial clients. Business in the Industrial Broker segment is also characterised by high 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. The Industrial Broker segment comprises RVM Versicherungsmakler GmbH and its subsidiary RISConsult GmbH and Jahn & Sengstack GmbH under the holding RVM GmbH. Dr. Schmitt GmbH Würzburg has also been consolidated and reported in the segment since April 1, 2022. As Dr. Schmitt GmbH Würzburg was only included in the figures as of the second quarter of the previous year, the previous year's figures offer only limited comparability.

The Holding segment does not have active operations.

The development of the segments in the first nine months of 2023 and third quarter of 2023 is explained in the following. The following provides an overview of the earnings performance and development of revenue and expenses in the segments within the first nine months and the third quarter of 2023. You can find detailed figures on the development of earnings, revenue and expenses recorded by the individual segments under "Information regarding reportable business segments".

Financial Consulting segment

At € 281.0 million (€ 282.5 million), total revenue in the Financial Consulting segment for the first nine months of 2023 remained at virtually the same good level recorded in the previous year. Sales revenues declined to € 258.0 million (€ 264.3 million), which can primarily be attributed to the significant decrease in revenue from the loans & mortgages and real estate brokerage business. Although it was unable to fully compensate for this, positive revenue development was recorded particularly in the field of non-life insurance, old-age provision, and health insurance. Other income rose to € 22.9 million (€ 18.2 million), in particular due to higher Group allocations relating to the utilization of the sales infrastructure by MLP Banking AG, as well as payments from product partners for attending and participating in the Main Seminar.

Due to lower sales revenues, commission expenses were € 120.7 million (€ 134.3 million). Remeasurement gains or losses/loan loss provisions stood at –€ 0.0 million (–€ 0.4 million). Personnel expenses climbed to € 65.8 million (€ 59.7 million). Alongside salary increases and expenses accrued within the scope of the inflation premium, this rise can also be attributed to the commencement of operations by MLP Startup GmbH. Depreciation/amortisation and impairment charges fell slightly to € 13.5 million (€ 14.3 million). Other expenses increased to € 82.0 million (€ 73.7 million), primarily due to expenses accrued in the context of holding the previously postponed Anniversary Main Seminar, which could not be held in the previous year due to coronavirus restrictions.

EBIT was ‒€ 0.8 million (€ 2.8 million). Due to increased interest expenses for loans, the financial result fell to ‒€ 0.4 million (€ 0.6 million). Accordingly, EBT fell to –€ 1.2 million (€ 3.4 million).

Looking at the third quarter in isolation, total revenue rose slightly to € 89.1 million (€ 88.8 million). Sales revenue was € 82.8 million (€ 83.3 million) while other revenue was € 6.3 million (€ 5.6 million). Commission expenses declined to € 38.2 million (€ 40.2 million) due to lower commission income. Personnel expenses increased to € 21.4 million (€ 19.0 million). Contributing factors included the commencement of operations by MLP Startup GmbH. Depreciation and impairment expenses decreased slightly to € 4.4 million (€ 4.8 million). Other operating expenses were € 27.6 million (€ 24.5 million) and as such higher than in the previous year. Various factors contributed to this, including the effect of an impairment loss related to a non-consolidated company. EBIT was ‒€ 2.6 million (€ 1.2 million) in Q3. With a finance result of –€ 0.0 million (€ 0.2 million), EBT was ‒€ 2.7 million (€ 1.3 million).

Banking segment

Total revenue in the Banking segment increased significantly to € 129.8 million (€ 98.9 million) in the first nine months. Sales revenues rose to € 126.0 million (€ 96.5 million). This was due to the interest rate business, which remained strong in the high interest environment. At € 3.8 million (€ 2.4 million), other income was also above the previous year's level.

Commission expenses declined to € 38.6 million (€ 43.7 million). In line with higher interest rates, interest expenses also rose substantially to € 11.2 million (€ 0.3 million). Remeasurement gains or losses/loan loss provisions rose slightly to –€ 1.6 million (–€ 1.5 million). Personnel expenses increased to € 12.1 million (€ 10.7 million). This can be attributed to various factors, including a rise in the number of employees. At € 0.4 million (€ 0.4 million), depreciation/amortisation and impairment remained at the previous year's level. Other expenses increased significantly to € 34.3 million (€ 28.3 million). This can primarily be attributed to higher Group allocations relating to the sales infrastructure.

EBIT rose substantially to € 31.5 million (€ 14.0 million). The finance result was –€ 0.0 million (€ 0.1 million). Accordingly, EBT was € 31.5 million, following € 14.2 million in the previous year.

Looking at the third quarter in isolation, total revenue rose significantly to € 46.8 million (€ 34.5 million). As a result of the interest rate business, which remains strong, sales revenues increased to € 45.6 million (€ 33.7 million). Other income was € 1.2 million (€ 0.8 million). Remeasurement gains or losses/loan loss provisions declined to –€ 0.0 million, following –€ 1.0 million in the previous year. Commission expenses declined to € 13.5 million (€ 14.4 million). Interest expenses rose significantly to € 5.8 million (€ 0.1 million). This was once again caused by higher interest rates. Personnel expenses were € 3.9 million (€ 3.3 million). Depreciation/amortisation and impairments remained virtually unchanged at € 0.2 million (€ 0.1 million). Other expenses increased to € 11.7 million (€ 9.3 million). EBIT therefore reached € 11.8 million (€ 6.1 million). With a finance result of € 0.0 million (€ 0.0 million), EBT was € 11.8 million (€ 6.1 million).

FERI segment

Total revenue in the FERI segment declined to € 156.7 million (€ 164.3 million) in the reporting period, while sales revenue declined to € 153.8 million (€ 161.2 million). This can be attributed to lower performance fees as a result of market trends, as well as the increasing attractiveness of other asset classes in the high interest environment. Other income also fell to € 2.9 million (€ 3.1 million).

Commission expenses declined marginally to € 95.9 million (€ 97.5 million). Remeasurement gains or losses/loan loss provisions totalled € 0.1 million (€ 0.2 million). At € 32.4 million (€ 30.4 million), personnel expenses were above the previous year's level. Depreciation/amortisation and impairments were € 2.7 million (€ 2.6 million). Other expenses were € 11.4 million (€ 11.6 million).

As a result, EBIT declined to € 14.4 million (€ 22.5 million). With a financial result of € 0.1 million (–€ 0.6 million), EBT was € 14.5 million (€ 21.9 million).

Looking at the third quarter in isolation, total revenue increased moderately to € 53.2 million (€ 52.5 million). At € 52.7 million (€ 51.5 million), sales revenues were higher than in the previous year. Other income declined to € 0.5 million (€ 1.0 million). Commission expenses increased slightly to € 32.7 million (€ 31.8 million). Personnel expenses were € 11.1 million, following € 9.6 million in the previous year. At € 0.9 million (€ 0.9 million), depreciation/amortisation and impairments remained consistent with the previous year's level. Other expenses increased to € 4.2 million (€ 3.6 million). This resulted in a decline in EBIT to € 4.7 million (€ 5.8 million) in the third quarter. With a financial result of € 0.1 million (–€ 0.1 million), EBT was € 4.8 million (€ 5.7 million).

DOMCURA segment

Total revenue increased to € 100.8 million (€ 89.0 million). Sales revenue rose to € 98.6 million (€ 86.2 million). This can be attributed to the positive effect of premium indexations due to increased building costs and premium adjustments. Other income declined to € 2.2 million (€ 2.8 million).

In line with higher sales revenue, commission expenses increased to € 64.8 million (€ 57.6 million). Personnel expenses were € 15.4 million (€ 13.8 million). Depreciation/amortisation and impairments increased to € 2.2 million (€ 1.9 million). Other expenses rose to € 9.7 million (€ 7.4 million), contributing factors included higher expenses for IT and client support services and the participation in the Main Seminar.

At € 8.8 million (€ 8.4 million), EBIT virtually matched the previous year's level. With a financial result that rose to € 0.4 million (‒€ 0.2 million), EBT was € 9.2 million (€ 8.2 million).

Looking at the third quarter in isolation, total revenue increased to € 22.7 million (€ 19.1 million), while sales revenue rose to € 21.9 million (€ 18.3 million). At € 0.7 million (€ 0.8 million), other income remained slightly below the previous year's level. Commission expenses increased to € 14.1 million (€ 12.5 million). Personnel expenses climbed to € 5.2 million (€ 4.4 million). Depreciation/amortisation and impairments increased slightly to € 0.8 million (€ 0.6 million). Other expenses increased to € 3.4 million (€ 2.8 million). EBIT was – € 0.6 million (–€ 1.2 million). With a finance result of € 0.1 million (‒€ 0.0 million), EBT was ‒€ 0.5 million (‒€ 1.2 million).

Deutschland.Immobilien segment

Total revenue fell sharply to € 30.6 million (€ 68.6 million). Set against the background of the particularly challenging market conditions, as well as the lower level of construction and sales activities resulting from this, sales revenues declined significantly to € 24.8 million in the first half of (€ 65.7 million). Other income was € 5.8 million (€ 2.9 million).

Commission expenses decreased to € 7.7 million (€ 22.1 million) as a result of lower sales revenue. Due to the declining volume in real estate development, real estate development expenses fell to € 14.7 million (€ 32.0 million). Personnel expenses were € 6.8 million (€ 6.4 million). Depreciation/amortisation and impairments were € 1.0 million (€ 1.2 million). Other expenses rose markedly to € 9.1 million (€ 3.6 million).

At –€ 5.5 million (€ 6.8 million), EBIT fell sharply year on year. The financial result declined to ‒€ 5.1 million (‒€ 2.4 million). This was due to a rise in interest expenses resulting from higher interest rates, as well as increased borrowing. EBT was therefore ‒€ 10.5 million (€ 4.4 million).

Looking at the third quarter in isolation, total revenue fell significantly to € 5.7 million (€ 16.2 million). Sales revenue declined to € 4.4 million (€ 15.5 million). Other income was € 1.4 million (€ 0.7 million). Commission expenses declined to € 3.1 million (€ 5.5 million). Real estate development expenses decreased to € 3.4 million (€ 10.5 million). Personnel expenses rose marginally to € 2.4 million (€ 2.2 million). Depreciation/amortisation and impairments were € 0.5 million (€ 0.4 million). Other expenses increased to € 2.2 million, following € 1.1 million in the previous year. EBIT was therefore –€ 2.5 million (–€ 0.9 million). With a financial result of –€ 1.5 million (–€ 0.8 million), EBT was –€ 4.0 million (–€ 1.7 million).

Industrial Broker segment

Total revenue in the Industrial Broker segment increased substantially to € 28.1 million (€ 22.3 million), while sales revenue amounted to € 27.6 million (€ 21.7 million). Among other things, the fact that Dr. Schmitt GmbH Würzburg was included for the first time in the figures for nine full months represented a positive factor here, having only been consolidated for the first time on April 1, 2022 in the previous year. In addition, the mergers into Dr. Schmitt GmbH Würzburg had a positive impact in relation to the previous year. Other income was € 0.5 million (€ 0.6 million).

At € 0.7 million (€ 0.7 million), commission expenses remained at the previous year's level. The first-time incorporation of Dr. Schmitt GmbH Würzburg for nine full months and the mergers into Dr. Schmitt GmbH Würzburg also had an impact on expenses. Personnel expenses rose to € 14.4 million (€ 11.8 million). Depreciation/amortisation and impairment amounted to € 2.2 million (€ 1.8 million). Other expenses increased to € 6.1 million (€ 2.7 million). This increase can mainly be attributed to a one-off balance sheet effect resulting from the merger of Dr. Schmitt Versicherungsmakler GmbH and Bavaria-Assekuranz Versicherungsmakler GmbH with Dr. Schmitt GmbH Würzburg.

EBIT declined to € 4.8 million (€ 5.3 million). With a financial result of –€ 0.7 million (–€ 0.7 million), EBT was € 4.1 million (€ 4.6 million).

Considering the third quarter in isolation, total revenue reached € 5.7 million (€ 5.0 million), while sales revenue increased to € 5.5 million (€ 4.7 million). Other income remained unchanged at € 0.3 million (€ 0.3 million). Commission expenses decreased to € 0.1 million (€ 0.3 million). Personnel expenses rose to € 4.5 million (€ 4.1 million). At € 0.7 million (€ 0.7 million), depreciation/amortisation and impairment remained at the previous year's level. Other expenses amounted to € 1.1 million, following € 0.8 million in the previous year. EBIT was therefore –€ 0.8 million (–€ 0.8 million). With a financial result of –€ 0.2 million (–€ 0.3 million), EBT was –€ 1.0 million (–€ 1.1 million).

Holding segment

At € 10.8 million (€ 7.4 million), total revenue in the Holding segment was above the previous year's level. No revenue is generated in this segment. Other income was € 10.8 million (€ 7.4 million). This rise can be attributed to greater revenue from Group allocations and higher rental income. The latter increased in particular due to letting of the property acquired in the second half of 2022 that was previously being rented and is still being used by DOMCURA AG.

At € 6.0 million, personnel expenses were higher than in the previous year (€ 4.4 million). This is largely due to restructuring measures and the transfer of employees from other Group companies to MLP SE. Depreciation/amortisation and impairments were € 1.5 million (€ 1.4 million). Other expenses rose to € 10.4 million (€ 7.7 million). Among other things, this can be attributed to higher ancillary costs relating to buildings, as well as the increase in employee numbers in this segment.

EBIT was –€ 7.2 million (–€ 6.1 million). The financial result rose significantly to € 3.1 million (‒€ 0.5 million) due to higher interest income as a result of the higher interest rate. As a result, EBT improved to –€ 4.1 million (–€ 6.6 million).

Looking at the third quarter in isolation, total revenue of € 3.9 million (€ 2.7 million) was higher than in the same period of the previous year. No revenue is generated in this segment. Other income increased to € 3.9 million (€ 2.7 million). Personnel expenses rose to € 2.0 million (€ 1.1 million). At € 0.5 million (€ 0.5 million), depreciation/amortisation and impairment charges remained at the previous year's level. Other expenses were € 3.2 million (€ 2.6 million). EBIT therefore totalled ‒€ 1.9 million (‒€ 1.5 million). With a financial result of € 1.9 million (–€ 0.1 million), EBT was € 0.0 million (‒€ 1.6 million).

Employees and self-employed client consultants

As MLP is a knowledge-based service provider, qualified and motivated employees and self-employed client consultants represent the most important foundation for sustainable company success. Recruitment of new consultants as well as their qualification and further development therefore represents an important focus along with a continuous development of our HR work.

The number of employees rose slightly to 2,351 (September 30, 2022: 2,265) in the reporting period. This increase can essentially be attributed to a higher number of employees returning from parental leave, as well as new recruitments compared to the previous year. The additions to the holding company result from the restructuring measures in the course of MLP SE gaining approval to operate as the parent financial holding company of the MLP Group. In particular, there were staff transfers from MLP Finanzberatung SE to MLP SE.

Segment	Sep. 30, 2023	Sep. 30, 2022
Financial Consulting 1	1,067	1,096
Banking	222	208
FERI	283	262
DOMCURA	313	296
Industrial Broker 2	266	263
Holding	87	23
Deutschland.Immobilien	113	117
Total	2,351	2,265

Development of number of employees by segment (excluding MLP consultants)

1 Including ZSH GmbH Finanzdienstleistungen and MLP Dialog GmbH.

² Since April 1, 2022: Dr. Schmitt GmbH Würzburg

At 2,030, the number of self-employed client consultants at the end of Q3, 2023 was slightly below the figure at the end of 2022 (December 31, 2022: 2,100) and slightly below the level of the same quarter in the previous year (September 30, 2022: 2,040). This also reflects a shifting effect related to the new trainee program for aspiring consultants, which was launched in mid-July. During their employment period at the newly established MLP Startup GmbH, they are classified similarly to apprentices and are therefore not included in the employee count. As of September 30, 2023, MLP operated 128 representative offices (December 31, 2022: 130). There were 98 university teams at the end of Q3 (December 31, 2022: 102).

Anticipated business development

You can find details on our forecast for the financial year 2023 in the Group Interim Report for H1 and Q2 2023, as well as in the Annual Report 2022 of the MLP Group at www.mlp-annual-report.com.

Our EBIT forecast for the year 2023, which we issued at the start of the year together with the publication of the annual figures for the financial year 2022, still applies. Despite the substantial and enduring adverse impacts in parts of our markets, coupled with continuous extensive investments, MLP still anticipates reporting EBIT within the range of € 75 million and € 85 million.

We had already partially adjusted our revenue expectations for individual consulting fields after reviewing the results for both the first three months and also the first half of the year. Now that the results for the first nine months are available, we will be making another adjustment. The expectations with regard to our expenses were partially revised after reviewing the results for the first half of the year. We are not making any further adjustments here.

We are still anticipating consistent revenue in wealth management. Likewise, we expect to see a slight increase in old-age provision revenue, while non-life insurance revenue is expected to rise sharply. In health insurance, we are revising our expectations following a lasting period of positive development in the first nine months and are now anticipating a slight increase in revenue for the year, having previously forecast only stable revenue. In the real estate brokerage and development consulting field, we are reaffirming our revised expectation of recording a significant decline in revenue after reviewing the results from the first six months of the year (after the first three months: slight decrease; at the start of the year: slight increase). In the loans and mortgages consulting field, we are also reaffirming our revised expectation of recording a significant decline in revenue after reviewing the results from the first three months of the year (at the start of the year: slight increase). In the interest rate business, we are reaffirming our revised expectation of recording a significant increase in revenue after reviewing the results from the first three months of the year (at the start of the year: slight increase).

With regard to administration costs, we are reaffirming our expectation from the start of the year of achieving an increase in the upper single-digit percentage range. In terms of commission expenses, we are reaffirming our revised expectation after reviewing the results for the first half of the year of recording a value at around the previous year's level (at the start of the year: slight increase). With regard to expenses from real estate development, we are also reaffirming our revised expectation after reviewing the results for the first half of the year of recording a significant decline (at the start of the year: significant increase).

We also reaffirm our mid-term plan of achieving a significant increase in EBIT by the end of 2025.

Prognoses

This documentation includes certain prognoses and information on future developments founded on the conviction 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 to the general public for updating or correcting prognoses. All prognoses and predictions are subject to different kinds of risks and uncertainties, which can lead to the actual results deviating from expectations. The prognoses reflect the points of view at the time when they were made.

CONSOLIDATED INCOME STATEMENT AND CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Income statement for the period from January 1 to September 30, 2023

All figures in €'000	Q3 2023	Q3 2022	9M 2023	9M 2022
Revenue	205,385	197,651	665,030	659,154
Other revenue	4,280	4,423	19,604	15,527
Total revenue	209,665	202,074	684,634	674,681
Inventory changes	2,072	2,805	896	3,719
Commission expenses	–95,339	–96,195	–307,079	–321,503
Real estate development expenses	–3,358	–10,278	–14,302	–31,293
Interest expenses	–5,186	–107	–9,888	–320
Valuation result/loan loss provisions	1,704	–1,884	678	–2,091
Personnel expenses	–50,580	–43,727	–152,914	–137,179
Depreciation and impairments	–8,012	–7,972	–23,596	–23,613
Other expenses	–43,313	–37,290	–133,449	–113,067
Earnings from investments accounted for using the equity method	124	724	211	2,873
Earnings before interest and taxes (EBIT)	7,776	8,150	45,192	52,206
Other interest and similar income	2,707	198	5,020	1,464
Other interest and similar expenses	–2,151	–898	–6,838	–3,279
Valuation result not relating to operating activities	5	27	21	–218
Financial result	561	–674	–1,797	–2,033
Earnings before taxes (EBT)	8,337	7,476	43,394	50,173
Income taxes	–2,929	–3,590	–14,372	–15,308
Net profit	5,408	3,886	29,022	34,865
Of which attributable to
owners of the parent company	6,591	4,451	32,483	34,524
non-controlling interests	–1,183	–565	–3,461	340
Earnings per share in €1,2
basic/diluted	0,06	0,04	0,30	0,32

¹ Basis of calculation (basic): average number of ordinary shares outstanding as of September 30, 2023: 109,197,076

² Basis of calculation (diluted): average number of ordinary shares outstanding as of September 30, 2023: 109,334,686

Statement of comprehensive income for the period from January 1 to September 30, 2023

All figures in €'000	Q3 2023	Q3 2022	9M 2023	9M 2022
Net profit	5,408	3,886	29,022	34,865
Gains/losses due to the revaluation of defined benefit obligations	2,693	3,364	1,048	20,355
Gains/losses due to equity instruments measured at fair value through other comprehensive income	–871	–116	348	–169
Deferred taxes on non-reclassifiable gains/losses	–536	–944	–413	–5,965
Non-reclassifiable gains/losses	1,286	2,304	983	14,221
Gains/losses due to currency translation differences	–12	21	24	303
Deferred taxes on reclassifiable gains/losses	–	–	–	–
Reclassifiable gains/losses	–12	21	24	303
Other comprehensive income	1,274	2,325	1,007	14,524
Total comprehensive income	6,682	6,212	30,030	49,388
Of which attributable to
owners of the parent company	7,865	6,776	33,491	49,048
non-controlling interests	–1,183	–565	–3,461	340

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Assets as of September 30, 2023

All figures in €'000	Sep. 30, 2023	Dec. 31, 2022
Intangible assets	230,708	234,514
Property, plant and equipment	137,690	136,553
Investments accounted for using the equity method	1,967	4,689
Deferred tax assets	4,222	3,531
Receivables from clients in the banking business	1,211,972	1,149,294
Receivables from financial institutions in the banking business	782,072	753,225
Financial assets	180,897	243,558
Inventories	52,033	51,899
Tax refund claims	9,144	8,365
Other receivables and assets	206,809	237,730
Cash and cash equivalents	958,590	961,231
Total	3,776,104	3,784,590

Liabilities and shareholders' equity as of September 30, 2023

All figures in €'000	Sep. 30, 2023	Dec. 31, 2022
Equity attributable to MLP SE shareholders	525,741	527,379
Non-controlling interests	–3,980	–1,855
Total shareholders' equity	521,761	525,524
Provisions	86,486	97,593
Deferred tax liabilities	21,049	19,277
Liabilities due to clients in the banking business	2,675,892	2,633,482
Liabilities due to financial institutions in the banking business	139,800	137,035
Tax liabilities	18,498	18,582
Other liabilities	312,618	353,097
Total	3,776,104	3,784,590

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

All figures in €'000 9M 2023 9M 2022 Cash and cash equivalents at beginning of period 957,640 1,373,953 Cash flow from operating activities 2,570 –254,564 Cash flow from investing activities 44,155 –85,406 Cash flow from financing activities –50,130 –38,925 Changes in cash and cash equivalents –3,404 –378,895 Change in cash and cash equivalent due to changes in the scope of consolidation 792 – Change in cash and cash equivalents due to exchange rate movements –29 –250 Change in liabilities to banks due on demand (excluding the banking business) 3,588 –12,451 Cash and cash equivalents at end of period 958,587 982,356

Condensed statement of cash flow for the period from January 1 to September 30, 2023

Condensed statement of cash flow for the period from July 1 to September 30, 2023

All figures in €'000	Q3 2023	Q3 2022
Cash and cash equivalents at beginning of period	949,595	1,146,286
Cash flow from operating activities	51,207	–168,448
Cash flow from investing activities	–5,007	–6,358
Cash flow from financing activities	–40,897	5,031
Changes in cash and cash equivalents	5,303	–169,775
Change in cash and cash equivalent due to changes in the scope of consolidation	220	–
Change in cash and cash equivalents due to exchange rate movements	–23	–126
Change in liabilities to banks due on demand (excluding the banking business)	3,492	5,971
Cash and cash equivalents at end of period	958,587	982,356

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Statement of changes in equity for the period from January 1 to September 30, 2023

All figures in €'000	Sub scribed capital	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 shareholders' equity	Non controlling interests	Total Share holders' equity
As of January 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	–	–1,154	–	–	–	–	–1,154	–	–1,154
Dividend	–	–	–	–	–	–32,800	–32,800	–	–32,800
Changes in non-controlling interests	–	–	–	–	–	–1,336	–1,336	1,336	–
Transactions with owners	45	–1,154	–	–	–	–34,020	–35,128	1,336	–33,792
Net profit	–	–	–	–	–	32,483	32,483	–3,461	29,022
Other comprehensive income	–	–	245	738	24	–	1,007	–	1,007
Total comprehensive income	–	–	245	738	24	32,483	33,491	–3,461	30,030
Changes to the scope of consolidation	–	–	–	–	–	–	–	–	–
As of September 30, 2023	109,333	148,899	261	–2,903	254	269,898	525,741	–3,980	521,762

Statement of changes in equity for the period from January 1 to September 30, 2022

All figures in €'000	Sub scribed capital	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 January 1, 2022	109,314	150,445	–	–17,546	–59	253,091	495,245	986	496,231
Acquisition of treasury stock	–26	–	–	–	–	–355	–381	–	–381
Share-based compensation	–	–1,363	–	–	–	–	–1,363	–	–1,363
Dividend	–	–	–	–	–	–32,786	–32,786	–	–32,786
Changes in non-controlling interests	–	–	–	–	–	–	–	–	–
Transactions with owners	–26	–1,363	–	–	–	–33,142	–34,530	–	–34,530
Net profit	–	–	–	–	–	34,524	34,524	340	34,865
Other comprehensive income	–	–	–119	14,340	303	–	14,524	–	14,524
Total comprehensive income	–	–	–119	14,340	303	34,524	49,048	340	49,388
Changes to the scope of consolidation	–	–	–	–	–	–	–	–	–
As of September 30, 2022	109,288	149,083	–119	–3,206	244	254,474	509,762	1,326	511,089

REVENUE

All figures in €'000	Q3 2023	Q3 2022	9M 2023	9M 2022
Wealth management	78,114	78,643	228,452	240,062
Non-life insurance	34,006	29,276	161,773	142,055
Old-age provision	51,253	49,934	144,447	136,252
Health insurance	15,260	13,463	44,818	41,561
Loans and mortgages	3,308	4,624	10,262	16,099
Real estate brokerage	3,380	6,921	8,913	31,021
Other commissions and fees	804	1,109	4,679	4,577
Total commission income	186,125	183,969	603,345	611,627
Revenue from real estate development	1,010	8,609	15,956	34,955
Interest income	18,250	5,073	45,729	12,573
Total	205,385	197,651	665,030	659,154

INFORMATION REGARDING REPORTABLE BUSINESS SEGMENTS (QUARTERLY COMPARISON)

	Financial Consulting		Banking		FERI				DOMCURA Deutschland.Immobilien		Industrial Broker			Holding	Consolidation		Total
All figures in €'000	Q3 2023	Q3 2022	Q3 2023	Q3 2022	Q3 2023	Q3 2022	Q3 2023	Q3 2022	Q3 2023	Q3 2022	Q3 2023	Q3 2022	Q3 2023	Q3 2022¹	Q3 2023	Q3 2022	Q3 2023	Q3 2022
Revenue	82,756	83,263	45,620	33,722	52,689	51,505	21,923	18,252	4,350	15,536	5,462	4,689	–	–	–7,415	–9,316	205,385	197,651
Of which total inter segment revenue	5,236	7,595	2,159	3,548	–	–	–	–	–	–	–	–	–	–	–7,395	–11,143	–	–
Other revenue	6,343	5,580	1,220	810	471	954	747	806	1,363	657	274	284	3,871	2,731	–10,009	–7,399	4,280	4,423
Of which total inter segment income	4,951	3,321	1,124	709	–	–	–	257	326	534	–	36	3,590	2,541	–9,989	–7,399	–	–
Total revenue	89,099	88,843	46,840	34,532	53,160	52,459	22,670	19,058	5,713	16,192	5,736	4,974	3,871	2,731	–17,425	–16,715	209,665	202,074
Inventory changes	–	–	–	–	–	–	–	–	2,072	2,805	–	–	–	–	–	–	2,072	2,805
Commission expenses	–38,223	–40,157	–13,527	–14,443	–32,714	–31,758	–14,143	–12,542	–3,072	–5,470	–148	–270	–	–	6,488	8,444	–95,339	–96,195
Real estate
development expenses	–	–	–	–	–	–	–	–	–3,412	–10,523	–	–	–	–	53	245	–3,358	–10,278
Interest expenses Valuation result/	–	–	–5,770	–107	–	–	–	–	–	–	–	–	–	–	584	–	–5,186	–107
Loan loss provisions	–194	8	–30	–1,046	494	–719	203	60	1,231	–188	–	–	–	–	–	–	1,704	–1,884
Personnel expenses Depreciation and	–21,432	–18,980	–3,930	–3,345	–11,055	–9,609	–5,229	–4,418	–2,404	–2,193	–4,519	–4,063	–2,011	–1,119	–	–	–50,580	–43,727
impairments	–4,445	–4,828	–151	–146	–938	–903	–764	–560	–463	–369	–717	–676	–534	–491	–	–	–8,012	–7,972
Other expenses	–27,576	–24,462	–11,657	–9,336	–4,237	–3,633	–3,375	–2,808	–2,160	–1,110	–1,137	–800	–3,231	–2,579	10,059	7,438	–43,313	–37,290
Earnings from investments accounted for using the equity
method	126	726	–	–	–	–	–	–	–2	–2	–	–	–	–	–	–	124	724
Earnings before interest and taxes (EBIT)	–2,645	1,150	11,775	6,109	4,709	5,837	–637	–1,209	–2,496	–857	–784	–835	–1,906	–1,458	–240	–588	7,776	8,150
Other interest and
similar income	839	641	37	26	387	–5	137	–21	511	279	72	–0	2,213	–14	–1,488	–708	2,707	198
Other interest and similar expenses	–865	–508	–30	–14	–265	–109	–4	–1	–1,974	–1,125	–276	–277	–308	–91	1,571	1,226	–2,151	–898
Valuation result not relating to operating
activities Financial result	– –27	24 157	– 7	– 12	– 122	– –114	– 133	– –22	– –1,463	– –846	– –204	– –277	5 1,910	3 –103	– 82	– 518	5 561	27 –674
Earnings before taxes
(EBT)	–2,672	1,307	11,782	6,121	4,831	5,724	–504	–1,231	–3,958	–1,703	–988	–1,112	4	–1,560	–158	–70	8,337	7,476
Income taxes																	–2,929	–3,590
Net profit Of which attributable to																	5,408	3,886
owners of the parent company																	6,591	4,451
non-controlling interests																	–1,183	–565

INFORMATION REGARDING REPORTABLE BUSINESS SEGMENTS (9M COMPARISON)

	Financial Consulting		Banking		FERI				DOMCURA Deutschland.Immobilien		Industrial Broker		Holding		Consolidation		Total
All figures in €'000	9M 2023	9M 2022	9M 2023	9M 2022	9M 2023	9M 2022	9M 2023	9M 2022	9M 2023	9M 2022	9M 2023	9M 2022	9M 2023	9M 2022	9M 2023	9M 2022	9M 2023	9M 2022
Revenue	258,038	264,265	125,972	96,541	153,822	161,228	98,617	86,200	24,772	65,743	27,572	21,723	–	–	–23,763	–36,547	665,030	659,154
Of which total inter
segment revenue	17,678	29,971	6,065	5,804	–	–	–	–	0	–	–	772	20	–	–23,763	–36,547	–0	–
Other revenue	22,939	18,232	3,808	2,399	2,881	3,113	2,202	2,834	5,849	2,906	488	609	10,841	7,380	–29,404	–21,946	19,604	15,527
Of which total inter
segment income	14,646	10,543	3,163	2,071	–	–	2	772	1,324	1,601	–	123	10,270	6,837	–29,404	–21,946	–	–
Total revenue	280,977	282,496	129,780	98,940	156,703	164,341	100,819	89,034	30,620	68,649	28,060	22,333	10,841	7,380	–53,167	–58,493	684,634	674,681
Inventory
changes	–	–	–	–	–	–	–	–	896	3,719	–	–	–	–	–	–	896	3,719
Commission expenses	–120,714	–134,346	–38,601	–43,658	–95,898	–97,461	–64,759	–57,597	–7,670	–22,053	–659	–707	–	–	21,222	34,319	–307,079	–321,503
Real estate
development expenses	–	–	–	–	–	–	–	–	–14,652	–31,969	–	–	–	–	350	676	–14,302	–31,293
Interest expenses	–	–	–11,229	–320	–	–	–	–	–	–	–	–	–	–	1,340	–	–9,888	–320
Valuation result/ Loan loss provisions	–17	–438	–1,650	–1,549	54	181	72	22	2,218	–308	–	–	–	–	–	–	678	–2,091
Personnel expenses	–65,793	–59,690	–12,116	–10,691	–32,426	–30,389	–15,406	–13,822	–6,763	–6,366	–14,372	–11,844	–6,039	–4,377	–	–	–152,914	–137,179
Depreciation and
impairments	–13,524	–14,347	–420	–358	–2,718	–2,618	–2,215	–1,880	–1,015	–1,236	–2,166	–1,773	–1,537	–1,401	–	–	–23,596	–23,613
Other expenses	–81,991	–73,723	–34,264	–28,321	–11,350	–11,553	–9,716	–7,395	–9,120	–3,650	–6,061	–2,699	–10,428	–7,661	29,481	21,934	–133,449	–113,067
Earnings from
investments accounted
for using the equity
method	217	2,879	–	–	–	–	–	–	–6	–6	–	–	–	–	–	–	211	2,873
Segment earnings before interest and
taxes (EBIT)	–845	2,831	31,502	14,043	14,365	22,502	8,796	8,362	–5,492	6,782	4,802	5,309	–7,162	–6,058	–775	–1,564	45,192	52,206
Other interest and
similar income	2,268	1,883	89	151	877	–92	424	–177	1,396	792	121	–4	3,805	–209	–3,960	–883	5,020	1,464
Other interest and
similar expenses	–2,650	–1,334	–102	–42	–733	–318	–12	–2	–6,452	–3,218	–829	–740	–761	–323	4,701	2,697	–6,838	–3,279
Valuation result not relating to operating
activities	2	15	–	–	–5	–223	–	–	–	–	–	–	24	–10	–	–	21	–218
Financial result	–380	564	–13	110	139	–633	412	–178	–5,057	–2,426	–708	–744	3,068	–541	742	1,814	–1,797	–2,033
Earnings before taxes
(EBT)	–1,224	3,395	31,489	14,153	14,504	21,869	9,208	8,184	–10,549	4,355	4,093	4,565	–4,094	–6,600	–33	250	43,394	50,173
Income taxes																	–14,372	–15,308
Net profit																	29,022	34,865
Of which attributable to
owners of the parent
company																	32,483	34,524
non-controlling interests																	–3,461	340

Financial calendar 2023

Novemeber

November 28, 2023 Company presentation at the German Equity Forum in Frankfurt am Main

Financial calendar 2024

March

March 7, 2024 Publication of the results for the financial year 2023 Online annual Press and Analyst conference

March 28, 2024 Publication of the Annual Report for the financial year 2023

May

May 15, 2024 Publication of the results for the first quarter 2024

June

June 27, 2024 Annual General Meeting of MLP SE

August

August 14, 2024 Publication of the results for the first half-year and the second quarter 2024

November

November 14, 2024 Publication of the results for the first nine months and third quarter 2024

Contact

Investor Relations

investorrelations@mlp.de Phone +49 (0) 6222 308 8320 Fax +49 (0) 6222 308 1131

Media Relations

publicrelations@mlp.de Phone +49 (0) 6222 308 8310 Fax +49 (0) 6222 308 1131

MLP SE

Alte Heerstraße 40

69168 Wiesloch

www.mlp-se.com

QUARTERLY GROUP STATEMENT FOR THE FIRST NINE MONTH OF 2023 36