Quarterly Report • May 12, 2023
Quarterly Report
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FOR THE FIRST QUARTER OF 2023
| All figures in € million | Q1 2023 | Q1 2022 | Change in % |
|---|---|---|---|
| MLP Group | |||
| Total revenue | 262.8 | 254.7 | 3.2% |
| Revenue | 254.4 | 249.9 | 1.8% |
| Other revenue | 8.4 | 4.7 | 76.4% |
| Earnings before interest and taxes (EBIT) | 32.4 | 34.6 | –6.3% |
| EBIT margin (in %) | 12.3% | 13.6% | - |
| Net profit | 22.9 | 24.2 | –5.4% |
| Earnings per share (diluted/basic) (in €) | 0.22 | 0.23 | –4.4% |
| Cash flow from operating activities | –73.3 | –37.1 | 97.6% |
| Capital expenditure | 3.8 | 3.3 | 15.2% |
| Shareholders' equity | 545.9 | 525.51 | 3.9% |
| Equity ratio (in %) | 14.4% | 13.9%1 | - |
| Balance sheet total | 3,794.9 | 3,784.61 | 0.3% |
| Private clients (families) | 573,100 | 569,200 1 | 0.7% |
| Corporate and institutional clients | 28,200 | 28,400 1 | –0.7% |
| Consultants | 2,078 | 2,100 1 | –1.0% |
| Branch offices | 128 | 130 1 | –1.5% |
| University teams | 101 | 102 1 | –1.0% |
| Employees | 2,303 | 2,188 | 5.3% |
| Brokered new business | |||
| Old-age provision (premium sum) | 759.1 | 585.8 | 29.6% |
| Loans and mortgages | 308.3 | 857.6 | –64.1% |
| Assets under management (in € billion) | 55.7 | 54.3 1 | 2.6% |
| Non-life insurance (premium volume) | 672.6 | 632.2 1 | 6.4% |
| Real estate (brokered volume) | 23.0 | 152.0 | –84.9% |
¹ As of December 31, 2022
This quarterly Group statement presents significant events and business transactions of the first quarter of 2023 and updates forecast-oriented information contained in the last joint management report. The Annual Report is available on our website at www.mlp-se.com and also at www.mlp-annual-report.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 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.
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 more than € 55.7 billion for around 573,100 private and 28,200 corporate clients as well as non-life insurance portfolio volumes of around € 672.6 million.
The values disclosed in the following quarterly Group statement have been rounded to one decimal place. Differences are therefore possible in the case of additions to the individual values shown, as well as in the calculations of changes over the previous year.
In comparison with the corporate profile described in MLP's 2022 Annual Report, the changes presented below were made during the reporting period. These relate to organisation and administration.
You can find detailed information on our business model, our corporate structure and our control system in the MLP Group Annual Report 2022 at www.mlp-annual-report.com.
In the first quarter of 2023, MLP Finanzberatung SE founded another 100 % subsidiary called MLP Startup GmbH and then concluded a control and profit transfer agreement with this new company on February 20, 2023. On March 21, 2023, a control and profit transfer agreement was also concluded between RVM GmbH and Dr. Schmitt GmbH 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. However, the entry into the Commercial Register responsible for Dr. Schmitt GmbH Würzburg has not yet been made. In the area of Deutschland.Immobilien, the insolvency proceedings at Convivo Wohnparks Deutschland.Immobilien Wittmund GmbH & Co. KG were initiated on March 9, 2023, furthermore at Convivo Wohnparks Deutschland.Immobilien GmbH on April 4, 2023.
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, 2023 to March 1, 2023. This corresponds to 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.
At the start of the current financial year, the MLP Group continued the positive development it had already enjoyed the previous year. Between January and March, total revenue rose by 3.2 % to € 262.8 million. In an environment that remains challenging, among other things due to the consequences of the war in Ukraine, the turnaround in interest rates, the high level of inflation, as well as further uncertainties, the diversified positioning of the MLP Group that has been established over the last few years once again paid off. In this environment, the multiple strong pillars served to balance one another and provide stability.
Above all, it was possible to record a significant increase in revenue in the interest rate business (+230.6 %) and real estate development (+32.4 %). In terms of revenue from commissions and fees, the various consulting fields displayed varying development, but almost balanced one another out. It was therefore possible to maintain revenue from commissions and fees at virtually the same good level recorded in the previous year (–2.6 %).
Non-life insurance revenue improved by 11.5 % and the premium volume rose to a new all-time high of € 672.6 million. Old-age provision revenue also increased (+8.0 %), as did health insurance revenue (+5.4 %).
In wealth management, the volatile capital markets had an impact in the previous quarters meaning that only low performance-based compensations could be collected. Revenue declined by 9.1 % here. At the same time, it was still possible to record net cash inflows in wealth management and increase assets under management to € 55.7 billion.
Challenging market conditions also led to declining revenue in real estate brokerage (–85.5 %) and loans and mortgages (–30.5 %).
Despite operating in an environment that remains challenging, earnings before interest and taxes (EBIT) were € 32.4 million, thereby almost equalling the excellent level recorded in the same quarter of the previous year (€ 34.6 million).
The gross number of newly acquired family clients in the first quarter was 4,300 (Q1 2022: 4,000).
As per the end of Q1 2023, the MLP Group served a total of 573,100 family clients (December 31, 2022: 569,200) and 28,200 corporate and institutional clients (December 31, 2022: 28,400).
Total revenue generated by the MLP Group rose to € 262.8 million (€ 254.7 million). This represents an increase of 3.2 % over the same period in the previous year.
As a result of the higher interest rate, interest income increased significantly to € 11.8 million (€ 3.6 million). Revenue from real estate development also increased markedly to € 10.0 million (€ 7.6 million), driven by increased sales and construction activities. At € 232.6 million, revenue from commissions and fees almost reached the good level recorded in the previous year (€ 238.8 million). Despite the individual business fields developing differently in an environment that remains challenging, they practically balanced each other out.
Non-life insurance revenue rose significantly by 11.5 % to € 91.7 million (€ 82.2 million). Premium indexations had a positive effect due to increased building costs, as well as premium adjustments. On the other hand, the first time consolidation of Dr. Schmitt GmbH Würzburg, which was only performed on April 1, 2022, also positively influenced the revenue.
Set against the background of volatility on the capital markets resulting in only low performance-based compensations being collected, wealth management revenue declined by 9.1 % to € 73.8 million (€ 81.2 million).
Thanks to good development in virtually all product areas, old-age provision revenue rose by a total of 8.0 % to € 43.6 million (€ 40.4 million).
At € 15.4 million (€ 14.6), revenue in the health insurance consulting field was up by 5.4 % over the previous year. This once again reflects the heightened awareness of the importance of health provision.
It is important to consider the current market conditions when examining revenue development in real estate brokerage and loans & mortgages. Real estate brokerage revenue declined by 85.5 % to € 1.8 million (€ 12.5 million). Revenue from loans and mortgages declined by 30.5 % to € 3.9 million (€ 5.6 million).
Other commission and fees were € 2.4 million, following € 2.2 million in the previous year.
Total earnings from investments accounted for using the equity method were € 0.0 million (€ 1.2 million). In the previous year, this figure included positive earnings of MLP Hyp, which are disclosed as earnings from investments accounted for using the equity method as a joint venture with Interhyp.
| All figures in € million | Share in % | Q1 2023 | Share in % | Q1 2022 | Change in % |
|---|---|---|---|---|---|
| Non-life insurance | 39.4% | 91.7 | 34.4% | 82.2 | 11.5% |
| Wealth management | 31.7% | 73.8 | 34.0% | 81.2 | –9.1% |
| Old-age provision | 18.8% | 43.6 | 16.9% | 40.4 | 8.0% |
| Health insurance | 6.6% | 15.4 | 6.1% | 14.6 | 5.4% |
| Loans and mortgages | 1.7% | 3.9 | 2.4% | 5.6 | –30.5% |
| Other commissions and fees | 1.0% | 2.4 | 0.9% | 2.2 | 5.5% |
| Real estate brokerage | 0.8% | 1.8 | 5.2% | 12.5 | –85.5% |
| Total revenue from commissions and fees | 232.6 | 238.8 | –2.6% | ||
| Real estate development | 10.0 | 7.6 | 32.4% | ||
| Interest income | 11.8 | 3.6 | 230.6% | ||
| Total | 254.4 | 249.9 | 1.8% |
Inventory changes were –€ 1.1 million (€ 2.7 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. The 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 areas 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 revenue from commissions and fees, commissions paid were below the previous year's level at € 115.6 million (€ 124.4 million). Real estate brokerage expenses decreased to € 6.2 million (€ 8.6 million). Interest expenses rose to € 1.4 million (€ 0.1 million) due to higher interest rates.
Gross profit (defined as total revenue less commission expenses, real estate development expenses and interest expenses, plus inventory changes) improved to € 138.5 million (€ 124.2 million).
The item Remeasurement gains or losses/Loan loss provisions stood at –€ 0.5 million, following € 0.6 million in the previous year.
Administrative expenses of the MLP Group (defined as the sum of personnel expenses, depreciation/amortisation and impairment, as well as other operating expenses) totalled € 105.6 million and were thus above the previous year's level (€ 91.5 million). Overall, MLP continued its investments in digitalisation and further expansion of its business areas in the first quarter of 2023. The figure also includes the expenses from Dr. Schmitt GmbH Würzburg, which was only consolidated on April 1, 2022. In addition, expenses relating to an inflation bonus paid to the employees, as well as expenses incurred in connection with the Anniversary Main Seminar event are to be mentioned here. The individual items developed as follows: Personnel expenses rose by 12.5 % to € 52.0 million (€ 46.2 million). Depreciation/amortisation and impairments remained virtually unchanged at € 7.8 million (€ 7.7 million). Other expenses increased significantly to € 45.8 million (€ 37.6 million).
Despite the current market environment, which remains challenging, earnings before interest and taxes (EBIT) for the period from January to March 2023 were € 32.4 million, thereby almost equalling the excellent level recorded in the same quarter of the previous year (€ 34.6 million).
The finance cost in the reporting period was –€ 1.0 million (–€ 0.6 million). Earnings before taxes (EBT) reduced to € 31.4 million following € 34.0 million in the previous year. The tax rate was 27.1 % (28.8 %). Group net profit was € 22.9 million (€ 24.2 million). The diluted and basic earnings per share were € 0.22 (€ 0.23).
| All figures in € million | Q1 2023 | Q1 2022 | Change in % |
|---|---|---|---|
| Total revenue | 262.8 | 254.7 | 3.2% |
| Gross profit 1 | 138.5 | 124.2 | 11.5% |
| Gross profit margin (in %) | 52.7% | 48.8% | - |
| Earnings before interest and taxes (EBIT) | 32.4 | 34.6 | –6.3% |
| EBIT margin (in %) | 12.3% | 13.6% | - |
| Finance cost | –1.0 | –0.6 | 66.1% |
| Earnings before taxes (EBT) | 31.4 | 34.0 | –7.6% |
| EBT margin (in %) | 11.9% | 13.3% | - |
| Income taxes | –8.5 | –9.8 | –13.0% |
| Net profit | 22.9 | 24.2 | –5.4% |
| Net margin (in %) | 8.7% | 9.5% | - |
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.
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.
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 March 31, 2023, liabilities due to clients and financial institutions in the banking business of € 2,740.8 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 € 1,996.7 million (December 31, 2022: € 1,902.5 million). In addition to this, MLP maintains a high level of cash and cash equivalents of € 885.0 million (€ 961.2 million).
We did not perform any increase in capital stock in the reporting period.
Cash flow from operating activities declined to –€ 73.3 million from –€ 37.1 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 –€ 18.7 million to –€ 6.2 million. The inflow of cash and cash equivalents relates to repayments of fixed and time deposits, while the outflow of cash and cash equivalents in the previous year essentially related to the acquisition of the DSV Group.
As at the end of the first quarter of 2023, the MLP Group has access to cash holdings of around € 1,005 million. These are made up of cash and cash equivalents, the credit held by MLP SE at MLP Banking AG and the medium-term time deposits. 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.
The investment volume of the MLP Group in the first quarter of 2023 was € 3.8 million, which represents an increase over the previous year (€ 3.3 million). At € 2.2 million, most of the investments were made in the Financial Consulting segment (€ 1.2 million). Investments in operating and office equipment, as well as software and IT, represented a core focus here.
As of March 31, 2023, the balance sheet total of the MLP Group was € 3,794.9 million (December 31, 2022: € 3,784.6 million) On the assets side of the balance sheet, intangible assets remained virtually unchanged at € 233.5 million (December 31, 2022: € 234.5 million) Property, plant and equipment totalled € 138.4 million (December 31, 2022: € 136.6 million). Receivables from clients in the banking business increased to € 1,179.9 million (December 31, 2022: € 1,149.3 million). This was largely driven by the increase in ownresource loans. Receivables from clients in the banking business rose to € 816.9 million (December 31, 2022: € 753.2 million), mainly attributable to a higher investment volume in time deposits. Financial investments were € 234.1 million (December 31, 2022: € 243.6 million). Other receivables and assets increased slightly to € 241.3 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. Due to the typically strong year-end business, these increase considerably at the end of the year and then decline again during the course of the following financial year. Cash and Cash equivalents totalled € 885.0 million (December 31, 2022: € 961.2 million). The increase can mainly be attributed to lower cash funds of MLP Banking AG.
The "Inventories" item in the balance sheet essentially represents assets of the project enterprises within the DI Group. As of March 31, 2023, € 50.7 million were reported under this balance sheet item (December 31, 2022: € 51.9 million).
As of the reporting date of March 31, 2023, shareholders' equity of the MLP Group increased to € 545.9 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 March 31, 2023, they were € 1.7 million (December 31, 2022: € 1.9 million). The balance sheet equity ratio was 14.4 % (December 31, 2022: 14.0 %).
Provisions rose slightly to € 104.5 million (December 31, 2022: € 97.6 million). Liabilities due to clients in the banking business decreased to € 2,603.1 million (December 31, 2022: € 2,633.5 million) and reflect a decline in deposits on current accounts. Liabilities due to financial institutions in the banking business remained virtually unchanged at € 137.7 million (December 31, 2022: € 137.0 million). Other liabilities recorded a slight increase to € 361.5 million (December 31, 2022: € 353.1 million). This increase can be attributed to higher trade payables.
The MLP Group is broken down into the following segments:
The Financial Consulting segment includes revenue generated in the consulting fields of old-age provision, health and non-life insurance, loans & mortgages and real estate brokerage.
All banking services for both private and corporate clients, from wealth management, accounts and cards, through to the interest rate business, are brought together in the Banking segment.
Revenue in the FERI segment is primarily 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.
The Industrial Broker segment primarily generates revenue from the brokering of insurance policies for industrial and commercial clients. Revenue from this segment flows into the non-life insurance sales revenue. 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 not yet included in the figures in the first quarter of the previous year, the previous year's figures offer only limited comparability.
All revenue from real estate brokerage and real estate development of the DI Group are disclosed in the Deutschland.Immobilien segment.
The Holding segment does not have active operations.
Total revenue in the Financial Consulting segment declined slightly to € 103.5 million in the first quarter of 2023 (€ 105.5 million). Sales revenue declined to € 94.6 million (€ 99.4 million) and other income rose to € 8.9 million (€ 6.1 million). Payments of product partners for taking part in and contributing to the Anniversary Main Seminar represent one key reason for the increase in other income.
Set against the background of reduced revenue, commission expenses declined significantly to € 43.9 million (€ 52.8 million). Remeasurement gains or losses/loan loss provisions were –€ 0.0 million (–€ 0.2 million). Personnel expenses rose to € 23.0 million (€ 20.2 million). This can also be attributed to the inflation bonus paid to the employees. Depreciation and impairment expenses decreased slightly to € 4.5 million (€ 4.7 million). Other expenses rose markedly to € 29.1 million (€ 25.1 million). This increase can be attributed to various factors, including expenses for the delayed Anniversary Main Seminar, which took place at the start of the year.
EBIT declined considerably to € 2.9 million (€ 3.8 million). Finance cost fell to –€ 0.2 million (€ 0.2 million). EBT amounted to € 2.8 million (€ 3.9 million).
Total revenue in the Banking segment rose considerably to € 38.6 million (€ 30.2 million) in Q1. Within that figure sales revenue rose sharply € 37.6 million (€ 29.4 million) while other income stood at € 1.0 million (€ 0.8 million).
Commission expenses declined slightly to € 12.2 million (€ 13.2 million). Interest expenses increased substantially to € 1.5 million (€ 0.1 million). At –€ 1.0 million (€ 0.8 million), remeasurement gains or losses/loan loss provisions made a negative contribution. In the previous year, the reversal of impairment losses in the context of meeting the requirements of IFRS 9 had a positive effect. Personnel expenses rose to € 4.3 million (€ 3.6 million), while depreciation/amortisation and impairment remained unchanged at € 0.1 million (€ 0.1 million). Other expenses rose to € 11.3 million (€ 9.2 million).
EBIT rose to € 8.2 million (€ 4.9 million) mainly due to a higher interest income. With a finance cost of € 0.0 million (€ 0.0 million), EBT increased to € 8.2 million (€ 4.9 million).
At € 50.2 million (€ 57.8 million), total revenue in the FERI segment was significantly below the previous year's level. Sales revenues declined from € 56.9 million to € 49.8 million, while other income declined from € 0.8 million to € 0.4 million.
Commission expenses declined to € 31.3 million (€ 33.5 million). At € 0.0 million, the remeasurement gains or losses/loan loss provisions item did not have any appreciable effect (€ 0.2 million). At € 10.0 million, personnel expenses remained at the previous year's level (€ 10.0 million). Depreciation and impairment expenses increased slightly to € 0.9 million (€ 0.8 million). Other expenses fell sharply to € 3.5 million (€ 4.2 million). In the same quarter of the previous year, this item also included various expenses such as IT consulting costs.
EBIT declined considerably to € 4.5 million (€ 9.5 million). The previous year's higher figure was essentially due to significantly higher performance fees. With a finance cost of –€ 0.0 million (–€ 0.1 million), EBT was € 4.5 million (€ 9.3 million).
Total revenue increased significantly to € 54.5 million (€ 49.0 million). Sales revenue rose significantly to € 53.8 million (€ 48.2 million) in Q1. Premium indexations due to increased building costs and premium adjustments had a positive effect here. This primarily reflects the higher premium volumes. Other income remained unchanged at € 0.8 million (€ 0.8 million).
Commission expenses also increased significantly to € 34.6 million as a result of higher revenue (€ 30.8 million). These expenses are essentially accrued as variable compensation for brokerage services. Personnel expenses rose to € 5.3 million (€ 4.9 million). Depreciation/amortisation and impairments remained unchanged at € 0.7 million (€ 0.6 million). Other expenses increased to € 3.1 million (€ 2.2 million).
EBIT rose to € 10.6 million (€ 10.2 million). With a finance cost of € 0.1 million (–€ 0.1 million), EBT was € 10.7 million (€ 10.1 million).
Total revenue fell sharply to € 15.0 million (€ 21.0 million). Sales revenue declined to € 11.9 million (€ 20.0 million) in Q1. Other income improved to € 3.2 million (€ 1.1 million).
In conjunction with the lower revenue, commission expenses also declined to € 1.6 million (€ 12.5 million). Real estate development expenses decreased to € 6.3 million (€ 7.1 million). In addition, the remeasurement gains or losses/loan loss provisions item had a positive effect of € 0.8 million (€ 0.1 million).
At € 2.1 million, personnel expenses were slightly below the previous year's level (€ 2.2 million). Depreciation and impairment expenses decreased slightly to € 0.3 million (€ 0.4 million). Other expenses rose to € 4.6 million (€ 1.4 million), among other things from various expenses from real estate development projects.
EBIT improved to € 0.1 million (–€ 0.2 million). The finance cost was € –1.5 million (–€ 0.8 million), essentially comprising other interest and similar expenses of –€ 1.9 million (–€ 1.0 million). EBT was –€ 1.7 million (–€ 0.6 million).
Total revenue in the Industrial Broker segment was € 15.9 million (€ 12.5 million) in Q1. Sales revenue was € 15.7 million (€ 12.4 million) while other revenue was € 0.1 million (€ 0.0 million).
Commission expenses were € 0.4 million (€ 0.2 million). Personnel expenses amounted to € 4.9 million (€ 3.3 million). Depreciation/amortisation and impairments were € 0.7 million (€ 0.5 million). Other expenses totalled € 1.2 million (€ 1.0 million).
EBIT amounted to € 8.7 million (€ 7.5 million). With a finance cost of –€ 0.3 million (–€ 0.2 million), EBT was € 8.5 million (€ 7.4 million).
At € 3.8 million, total first quarter revenue in the Holding segment was significantly above the previous year's level (€ 2.3 million). Total revenue corresponds to the "other income" item, which was € 3.8 million (€ 2.3 million) and also includes rental income. Further positive effects over the previous year in this segment can also be attributed to restructuring measures performed in the course of MLP SE gaining approval to operate as the parent financial holding company of the MLP Group with the authorisation letter dated June 30, 2022.
At € 2.4 million (€ 2.0 million), personnel expenses were slightly above the previous year's level. This increase over the same quarter in the previous year can be attributed to the transfer of personnel from the Banking and Financial Consulting segments to the Holding segment. Depreciation/amortisation and impairments remained constant at € 0.5 million (€ 0.5 million). Other expenses rose to € 3.0 million (€ 2.2 million).
EBIT fell slightly to –€ 2.1 million (–€ 2.3 million). Finance cost rose to € 0.3 million (–€ 0.2 million). EBT therefore reached –€ 1.8 million (–€ 2.6 million).
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 to 2,303 (March 31, 2022: 2,188) in the reporting period. This increase can essentially be attributed to the acquisition of Dr. Schmitt GmbH Würzburg in the Industrial Brokers segment, as well as new recruitments and personnel returning to work following parental leave.
| Segment | March 31, 2023 | March 31, 2022 |
|---|---|---|
| Financial Consulting 1 | 1,109 | 1,103 |
| Banking | 218 | 212 |
| FERI | 264 | 255 |
| DOMCURA | 304 | 295 |
| Industrial Broker 2 | 263 | 202 |
| Holding | 38 | 15 |
| Deutschland.Immobilien | 107 | 106 |
| Total | 2,303 | 2,188 |
1 Including ZSH GmbH Finanzdienstleistungen and MLP Dialog GmbH.
2 Since April 1, 2022: Dr. Schmitt GmbH Würzburg
Employee turnover is typically higher in the first quarter. Accordingly, the number of self-employed client consultants at the end of the first quarter was 2,078 (December 31, 2022: 2,100) As of March 31, 2023, MLP operated 128 representative offices (December 31, 2022: 130). There were 101 university teams in the first quarter (December 31, 2022: 102)
You can find details on our forecast for the financial year 2023 in the Annual Report 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.
MLP is still expecting to record EBIT in a corridor between € 75 million and € 85 million for the financial year 2023, despite the ongoing heavy burdens in parts of our markets as well as ongoing extensive investments.
Now that the results for the first three months of the year are available, we are, however, adjusting our expectations for individual consulting fields.
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 and health insurance is likely to deliver consistent revenue. On the basis of current market developments, we are, however, adjusting our expectations in the areas of real estate and loans & mortgages. We are now anticipating a slight downward trend in revenue in the consulting field of real estate brokerage and development (formerly: slight increase) and a significant decline in revenue in the loans and mortgages consulting field (formerly: slight increase). On the other hand, we are increasing our expectations in the interest rate business and now anticipate significantly higher revenue (formerly: slight increase) on the basis of the positive developments already observed in the first quarter.
We are also happy to reaffirm our mid-term plan of achieving a significant increase in EBIT by the end of 2025.
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.
| All figures in €'000 | Q1 2023 | Q1 2022 |
|---|---|---|
| Revenue | 254,406 | 249,933 |
| Other revenue | 8,353 | 4,735 |
| Total revenue | 262,758 | 254,668 |
| Inventory changes | –1,097 | 2,702 |
| Commission expenses | –115,631 | –124,397 |
| Real estate development expenses | –6,178 | –8,643 |
| Interest expenses | –1,350 | –104 |
| Valuation result/loan loss provisions | –458 | 604 |
| Personnel expenses | –51,999 | –46,204 |
| Depreciation and impairments | –7,804 | –7,694 |
| Other expenses | –45,827 | –37,581 |
| Earnings from investments accounted for using the equity method | –10 | 1,220 |
| Earnings before interest and taxes (EBIT) | 32,404 | 34,572 |
| Other interest and similar income | 960 | 522 |
| Other interest and similar expenses | –1,988 | –1,132 |
| Valuation result not relating to operating activities | 6 | –5 |
| Finance cost | –1,022 | –616 |
| Earnings before taxes (EBT) | 31,382 | 33,956 |
| Income taxes | –8,500 | –9,770 |
| Net profit | 22,881 | 24,186 |
| of which attributable to | ||
| owners of the parent company | 23,506 | 24,737 |
| non-controlling interests | –625 | –551 |
| Earnings per share in €1 | ||
| basic/diluted | 0.22 | 0.23 |
1 Basis of calculation (basic): average number of ordinary shares outstanding as of March 31, 2023: 109,174,442
2 Basis of calculation (diluted): average number of ordinary shares outstanding as of March 31, 2023: 109,334,686
| All figures in €'000 | Q1 2023 | Q1 2022 |
|---|---|---|
| Net profit | 22,881 | 24,186 |
| Gains/losses due to the revaluation of defined benefit obligations | –533 | 6,790 |
| Gains/losses due to equity instruments measured at fair value through other comprehensive income | 405 | - |
| Deferred taxes on non-reclassifiable gains/losses | 37 | –2,007 |
| Non-reclassifiable gains/losses | –91 | 4,783 |
| Gains/losses due to currency translation differences | –23 | 120 |
| Reclassifiable gains/losses | –23 | 120 |
| Other comprehensive income | –114 | 4,904 |
| Total comprehensive income | 22,767 | 29,090 |
| Of which attributable to | ||
| owners of the parent company | 23,392 | 29,641 |
| non-controlling interests | –625 | –551 |
| All figures in €'000 | March 31, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Intangible assets | 233,510 | 234,514 |
| Property, plant and equipment | 138,414 | 136,553 |
| Investments accounted for using the equity method | 4,678 | 4,689 |
| Deferred tax assets | 3,645 | 3,531 |
| Receivables from clients in the banking business | 1,179,896 | 1,149,294 |
| Receivables from financial institutions in the banking business | 816,852 | 753,225 |
| Financial assets | 234,070 | 243,558 |
| Inventories | 50,730 | 51,899 |
| Tax refund claims | 6,770 | 8,365 |
| Other receivables and assets | 241,316 | 237,730 |
| Cash and cash equivalents | 884,994 | 961,231 |
| Total | 3,794,876 | 3,784,590 |
| All figures in €'000 | March 31, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Equity attributable to MLP SE shareholders | 547,559 | 527,379 |
| Non-controlling interests | –1,654 | –1,855 |
| Total shareholders' equity | 545,905 | 525,524 |
| Provisions | 104,503 | 97,593 |
| Deferred tax liabilities | 19,210 | 19,277 |
| Liabilities due to clients in the banking business | 2,603,129 | 2,633,482 |
| Liabilities due to financial institutions in the banking business | 137,712 | 137,035 |
| Tax liabilities | 22,948 | 18,582 |
| Other liabilities | 361,470 | 353,097 |
| Total | 3,794,876 | 3,784,590 |
| All figures in €'000 | Q1 2023 | Q1 2022 |
|---|---|---|
| Cash and cash equivalents at beginning of period | 957,640 | 1,373,953 |
| Cash flow from operating activities | –73,320 | –37,082 |
| Cash flow from investing activities | 6,210 | –18,745 |
| Cash flow from financing activities | –9,141 | –10,428 |
| Changes in cash and cash equivalents | –76,251 | –66,262 |
| Changes in cash and cash equivalents due to exchange rate movements | 13 | –17 |
| Changes in liabilities to banks due on demand (excluding the banking business) | 3,591 | 182 |
| Cash and cash equivalents at end of period | 884,993 | 1,307,856 |
| All figures in €'000 | Q1 2023 | Q1 2022 |
|---|---|---|
| Non-life insurance | 91,663 | 82,187 |
| Wealth management | 73,767 | 81,160 |
| Old-age provision | 43,613 | 40,393 |
| Health insurance | 15,402 | 14,618 |
| Loans and mortgages | 3,925 | 5,645 |
| Other commissions and fees | 2,373 | 2,248 |
| Real estate brokerage | 1,814 | 12,519 |
| Total revenue from commissions and fees | 232,557 | 238,771 |
| Real estate development income | 10,050 | 7,593 |
| Interest income | 11,798 | 3,569 |
| Total | 254,406 | 249,933 |
| 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, 2023 | 109,288 | 150,052 | 16 | –3,642 | 230 | 271,435 | 527,379 | –1,855 | 525,524 |
| Acquisition of treasury stock | –605 | - | - | - | - | –2,556 | –3,161 | - | –3,161 |
| Share-based compensation | - | 775 | - | - | - | - | 775 | - | 775 |
| Dividend | - | - | - | - | - | - | - | - | - |
| Changes in non-controlling interests | - | - | - | - | - | –825 | –825 | 825 | - |
| Transactions with owners | –605 | 775 | - | - | - | –3,381 | –3,211 | 825 | –2,386 |
| Net profit | - | - | - | - | - | 23,506 | 23,506 | –625 | 22,881 |
| Other comprehensive income | - | - | 284 | –376 | –23 | - | –114 | - | –114 |
| Total comprehensive income | - | - | 284 | –376 | –23 | 23,506 | 23,392 | –625 | 22,767 |
| Changes to the scope of consolidation | - | - | - | - | - | - | - | - | - |
| As of March 31, 2023 | 108,683 | 150,827 | 300 | –4,017 | 207 | 291,560 | 547,559 | –1,654 | 545,905 |
| 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 | –443 | - | - | - | - | –3,108 | –3,551 | - | –3,551 |
| Share-based compensation | - | 784 | - | - | - | - | 784 | - | 784 |
| Dividend | - | - | - | - | - | - | - | - | - |
| Changes in non-controlling interests | - | - | - | - | - | - | - | - | - |
| Transactions with owners | –443 | 784 | - | - | - | –3,108 | –2,767 | - | –2,767 |
| Net profit | - | - | - | - | - | 24,737 | 24,737 | –551 | 24,186 |
| Other comprehensive income | - | - | - | 4,783 | 120 | 4,904 | 4,904 | ||
| Total comprehensive income | - | - | - | 4,783 | 120 | 24,737 | 29,641 | –551 | 29,090 |
| Changes to the scope of consolidation | - | - | - | - | - | - | - | - | - |
| As of March 31, 2022 | 108,871 | 151,230 | - | –12,763 | 61 | 274,720 | 522,119 | 435 | 522,554 |
| Financial Consulting | Banking | FERI | DOMCURA Deutschland.Immobilien | Industrial Broker | Holding | Consolidation | Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| All figures in €'000 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 | Q1 2023 | Q1 2022 |
| Revenue | 94,565 | 99,422 | 37,592 | 29,416 | 49,786 | 56,925 | 53,760 | 48,158 | 11,864 | 19,973 | 15,720 | 12,400 | - | - | –8,881 | –16,361 | 254,406 | 249,933 |
| of which total inter | ||||||||||||||||||
| segment revenue | 7,021 | 13,763 | 1,860 | 1,827 | - | - | - | - | 0 | - | - | 772 | - | - | –8,881 | –16,361 | - | - |
| Other revenue | 8,906 | 6,115 | 995 | 795 | 404 | 847 | 759 | 806 | 3,170 | 1,061 | 139 | 132 | 3,824 | 2,314 | –9,843 | –7,334 | 8,353 | 4,735 |
| of which total inter segment revenue |
4,857 | 3,658 | 851 | 696 | - | - | - | 257 | 516 | 534 | - | 36 | 3,619 | 2,152 | –9,843 | –7,334 | - | - |
| Total revenue | 103,471 | 105,538 | 38,586 | 30,212 | 50,190 | 57,772 | 54,519 | 48,963 | 15,034 | 21,034 | 15,859 | 12,531 | 3,824 | 2,314 | –18,725 | –23,696 | 262,758 | 254,668 |
| Inventory | ||||||||||||||||||
| changes | - | - | - | - | - | - | - | - | –1,097 | 2,702 | - | - | - | - | - | - | -1,097 | 2,702 |
| Commission expenses | –43,888 | –52,756 | –12,153 | –13,247 | –31,336 | –33,479 | –34,585 | –30,845 | –1,574 | –12,516 | –366 | –212 | - | - | 8,270 | 18,658 | –115,631 | –124,397 |
| Real estate | ||||||||||||||||||
| development expenses | - | - | - | - | - | - | - | - | –6,342 | –7,118 | - | - | - | - | 164 | –1,525 | –6,178 | –8,643 |
| Interest expenses | - | - | –1,457 | 96 | - | - | - | - | - | - | - | - | - | - | 107 | –200 | –1,350 | –104 |
| Valuation result/ Loan loss provisions |
–21 | –235 | –1,021 | 756 | 33 | 204 | –288 | –209 | 839 | 88 | - | - | - | - | - | - | –458 | 604 |
| Personnel expenses | –22,960 | –20,160 | –4,307 | –3,643 | –10,047 | –10,023 | –5,265 | –4,890 | –2,086 | –2,236 | –4,889 | –3,288 | –2,444 | –1,963 | - | - | –51,999 | –46,204 |
| Depreciation and | ||||||||||||||||||
| impairments | –4,539 | –4,739 | –134 | –97 | –889 | –836 | –682 | –624 | –335 | –415 | –720 | –521 | –505 | –462 | - | - | –7,804 | –7,694 |
| Other expenses | –29,116 | –25,099 | –11,327 | –9,176 | –3,475 | –4,180 | –3,091 | –2,168 | –4,583 | –1,352 | –1,151 | –962 | –2,990 | –2,232 | 9,906 | 7,588 | –45,827 | –37,581 |
| Earnings from investments accounted for using the equity method |
–8 | 1,221 | - | - | - | - | - | - | –2 | –2 | - | - | - | - | - | - | –10 | 1,220 |
| Earnings before interest and taxes (EBIT) |
2,939 | 3,770 | 8,186 | 4,901 | 4,476 | 9,459 | 10,608 | 10,227 | –145 | 185 | 8,733 | 7,548 | –2,115 | –2,343 | –277 | 825 | 32,404 | 34,572 |
| Other interest and | ||||||||||||||||||
| similar income | 666 | 491 | 29 | 43 | 219 | –53 | 116 | –109 | 344 | 250 | 0 | –2 | 523 | –78 | –939 | –20 | 960 | 522 |
| Other interest and similar expenses |
–841 | –317 | –36 | –14 | –208 | –89 | –5 | –0 | –1,853 | –1,019 | –278 | –192 | –221 | –141 | 1,454 | 639 | –1,988 | –1,132 |
| Valuation result not relating to operating |
||||||||||||||||||
| activities | 2 | –5 | - | - | –5 | - | - | - | - | - | - | - | 9 | - | - | - | 6 | –5 |
| Finance cost | –172 | 169 | –7 | 29 | 7 | –142 | 111 | –110 | –1,509 | –769 | –278 | –193 | 312 | –219 | 515 | 619 | –1,022 | –616 |
| Earnings before taxes (EBT) |
2,766 | 3,939 | 8,179 | 4,930 | 4,482 | 9,317 | 10,719 | 10,117 | –1,654 | –584 | 8,455 | 7,355 | –1,803 | –2,562 | 238 | 1,445 | 31,382 | 33,956 |
| Income taxes | –8,500 | –9,770 | ||||||||||||||||
| Net profit of which attributable to |
22,881 | 24,186 | ||||||||||||||||
| owners of the parent company |
23,506 | 24,737 | ||||||||||||||||
| non-controlling interests | –625 | –551 | ||||||||||||||||
June 29, 2023 Annual General Meeting of MLP SE
August 10, 2023 Publication of the operating results for H1 and Q2 2023
November 9, 2023 Publication of the financial results for the first 9 months and Q3 2023
MLP SE
Alte Heerstraße 40
69168 Wiesloch
www.mlp-se.com
Tel + 49 (0) 6222 308 8320
Fax +49 (0) 6222 308 1131
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