MLP SE — Earnings Release 2017

Feb 28, 2018

Financial Results 2017

Frankfurt, February 28, 2018

2017: Good performance and significantly strengthened equity base

• Targets achieved: Operating EBIT up by 33 percent to € 46.7 million.
• MLP benefited significantly in 2017 from the diversification and cost management activities of the last few years.
• Total revenue increased to € 628.2 million the highest level since outbreak of the financial crisis in 2008.
• Executive Board proposes a dividend of 20 cents representing an increase of 12 cents over the previous year.
• Successful further development of the Group structure: Equity base of the MLP Group significantly strengthened in 2017. Free equity capital increased by a total of € 76.3 million as at the end of the year.

Broader leeway for the Group

Increased free equity capital Realigned Group structure/banking services

Significantly more stable revenue basis established

Growth outside the old-age provision area

Decline in the old-age provision area more than compensated

Proportion of recurring revenue significantly increased

30 %

FY 2017: Total revenue reaches highest level since outbreak of the financial crisis

Total revenue FY

* Previous year's values adjusted

FY 2017: Growth across all consulting areas, excluding old-age provision

Revenue

In € million

	2016	2017	 in %	Q4 2016	Q4 2017	 in %
Old-age provision	221.5	208.1	–6.0	94.3	86.1	–8.7
Wealth management	166.4	190.6	14.5	43.5	50.8	16.8
Health insurance	45.8	45.9	0.2	11.8	11.7	–0.8
Non-life insurance	105.6	109.9	4.0	20.0	19.1	–4.5
Loans and mortgages*	15.4	17.0	10.4	5.0	5.8	16.0
Other commission and fees	15.4	18.4	19.5	6.6	4.4	–33.3
Interest income	20.5	18.9	–7.8	4.9	4.5	–8.2

* Excluding MLP Hyp

Clients focusing on new guarantees and occupational pension provision

Assets under management increase to € 33.9 billion

Assets under management, MLP Group

Realigned Group structure: new segments

Previous structure (segments*)			Current structure (segments*)
	Finanzdienst leistungen	FERI	DOMCURA	Financial Consulting	Banking	FERI	DOMCURA
Old-age provision	x			x
Wealth management	x	x			x	x
Non-life insurance	x		x	x			x
Health insurance	x			x
Loans and mortgages	x			x
Real estate brokerage	x			x

*Further segment, but without active operations: Holding

Number of family clients around 530,000

Family clients

Client consultants

Operating EBIT increases significantly to € 46.7 million

Income statement

In € million

	Q4 2016	Q4 2017	2016	2017
Total revenue	191.7	187.5	610.4	628.2
Operating EBIT*	19.3	25.3	35.1	46.7
EBIT	8.2	23.0	19.7	37.6
Finance cost	-0.4	-0.5	-0.9	-1.2
EBT	7.7	22.5	18.7	36.4
Taxes	-2.6	-5.8	-4.1	-8.6
Net profit	5.1	16.7	14.7	27.8
EPS in € (diluted/basic)	0.05	0.15	0.13	0.25

2017: One-off expenses of € 9.1 million (€ 2.3 million in Q4/2017) for further optimisation of the Group structure (separation of banking and brokerage activities). One-off expenses of € 15.4 million in the year before (Q4/2016: € 11.1 million).

*Before one-off expenses

Significant increase in equity

In € million

Core capital ratio at 20 percent

In € million

Assets	Dec. 31, 2016	Dec. 31, 2017
Intangible assets	168.4	161.8
Financial assets	162.3	158.5
Receivables from clients in the banking business	626.5	702.0
Receivables from banks in the banking business	591.0	634.2
Other receivables and assets	122.8	125.7
Cash and cash equivalents	184.8	301.0

Equity ratio: 18.7 %

Return on equity: 7.3 %

Core capital ratio: 20.0 %

Liabilities and shareholders' equity

Shareholders' equity	383.6	404.9
Provisions	91.2	88.7
Liabilities due to clients in the banking business	1,271.1	1,439.8
Liabilities due to banks in the banking business	37.7	61.4
Other liabilities	146.9	154.9
Total	1,944.1	2,169.5

Net liquidity of around € 215 million

As of December 31, 2017

Executive Board proposes a dividend of 20 cents per share

Dividend per share

Strategic agenda 2018

Strategic focus

Implementation

• Strengthening of the university segment in the private client business: through focus on recruiting young consultants and acquiring clients
• Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business
• Accelerated implementation of digitalisation strategy: in particular extension of digital information and service offers

1 2 3

The MLP group continues to target acquisitions and is open for opportunities in three areas:

• In MLP's private client business
• In the DOMCURA market segment
• In the FERI market segment

Organic growth Inorganic growth Continued cost management

• Structural reduction of the cost base continued in 2017 – ongoing efficiency management
• Simultaneous investment in future projects

Making MLP less susceptible to short-term market influences and building on profit level already achieved

Accelerated implementation of digitalisation strategy

Complementing face-to-face consulting

Strategic agenda 2018

Strategic focus

Implementation

• Strengthening of the university segment in the private client business: through focus on recruiting young consultants and acquiring clients
• Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business
• Accelerated implementation of digitalisation strategy: in particular extension of digital information and service offers

1 2 3

The MLP group continues to target acquisitions and is open for opportunities in three areas:

• In MLP's private client business
• In the DOMCURA market segment
• In the FERI market segment

Organic growth Inorganic growth Continued cost management

• Structural reduction of the cost base continued in 2017 – ongoing efficiency management
• Simultaneous investment in future projects

Making MLP less susceptible to short-term market influences and building on profit level already achieved

Further broadening of revenue basis

Revenue distribution FY 2017/impetus for 2018

Strengthening of the university segment displaying initial successes

Strategic agenda 2018

Strategic focus

Implementation

• Strengthening of the university segment in the private client business: through focus on recruiting young consultants and acquiring clients
• Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business
• Accelerated implementation of digitalisation strategy: in particular extension of digital information and service offers

1 2 3

The MLP group continues to target acquisitions and is open for opportunities in three areas:

• In MLP's private client business
• In the DOMCURA market segment
• In the FERI market segment

Organic growth Inorganic growth Continued cost management

• Structural reduction of the cost base continued in 2017 – ongoing efficiency management
• Simultaneous investment in future projects

Making MLP less susceptible to short-term market influences and building on profit level already achieved

Outlook for the financial year 2018

Qualitative assessment of revenue development

Revenue	2018
Old-age provision	+
Wealth management	0
Health insurance	0
Non-life insurance	+
Loans and mortgages	0
Real estate brokerage	0

very positive: ++, positive: +, neutral: 0, negative: -, very negative: --

MLP is anticipating EBIT in 2018 to remain at around the level of operating EBIT recorded in 2017 – EBIT is likely to increase significantly, as there are no special expenses scheduled for 2018

• Targets achieved in 2017 MLP is benefiting from the strategic further development of the last few years.
• Transformation of MLP to be continued in 2018. In focus: further digitalisation, further diversification of the revenue basis, as well as strengthening the university segment.
• Despite comprehensive investments for the future: Our goal is to confirm the earnings base achieved in 2017.

Financial Results 2017

Frankfurt, February 28, 2018