MLP SE — Interim / Quarterly Report 2015

Nov 12, 2015

Financial results 9M/Q3 2015

Reinhard Loose, CFO

12th November 2015

• Highlights 9M/Q3 2015
• Key financial figures 9M/Q3 2015
• Consultants and clients
• Outlook and summary
• Questions & Answers

Highlights 9M/Q3 2015

• 9M: Total revenue up 7% to € 369.5 million
• Pro forma EBIT (prior to acquisitions) at € 8.3 million (€ 9.4 million)
• Q3: earnings as communicated end of October burdened as a result of severe volatility on the capital markets and a one-off tax effect
• Growth initiatives on track costs under control

• Significant upturn in business development anticipated in last weeks of the year

• Highlights 9M/Q3 2015

• Key financial figures 9M/Q3 2015
• Consultants and clients
• Outlook and summary
• Questions & Answers

9M: Total revenue rises to € 369.5 million

Total revenue 9M

[in € million]

Q3: Total revenue rises to € 122.9 million

Total revenue Q3

[in € million]

9M: Growth in nearly all consulting areas

Revenue

[in € million]

	Q3 2015	Q3 2014	Δ in %	9M 2015	9M 2014	Δ in %
Old-age provision	44.8	48.9	-8	128.0	133.1	-4
Wealth management	38.7	38.8	0	121.3	105.7	15
Health insurance	11.4	10.7	7	33.6	31.8	6
Non-life insurance*	11.5	5.5	>100	36.7	29.6	24
Loans and mortgages**	4.2	3.2	31	11.1	9.1	22
Other commissions and fees	4.0	2.4	67	10.4	5.4	93
Interest income	5.3	5.7	-7	16.1	17.1	-6

* since end of July 2015 incl. DOMCURA, **excluding MLP Hyp

Volatility on the capital markets: Assets under Management at € 27.9 billion

Assets under Management

Premium sum: old-age provision

[in € billion] [in € billion]

MLP benefits from further broadened revenue mix

Revenue from commissions and fees 9M 2015: € 341.1 million (€ 314.8 million)

9M: Proforma-EBIT reaches € 8.3 million

Income statement

[in € million]					Burdens Q3/2015:
	Q3 2015	Q3 2014	9M 2015	9M 2014*
Total revenue	122.9	117.8	369.5	344.7	• Market-related decrease in performance-linked fees and hesitancy in old-age
Pro forma-EBIT**	0.2	4.9	8.3	9.4	provision
EBIT	-0.7	4.9	7.4	9.4	• One-time tax burden (€ -1.1 million)
Finance cost	-2.0	0.0	-2.3	-0.1	• One-time burden within
EBT	-2.8	4.9	5.0	9.3	finance costs (€ -2.0 million)
Taxes	-0.1	-1.5	-1.4	-2.1
Group net profit	-2.9	3.4	3.7	7.2	Group net profit 9M/2015 with
EPS in € (diluted/undiluted)	-0.03	0.03	0.03	0.07	simulated DOMCURA purchase as of 1st Jan 2015: € 7.1 million

*Previous year's figures adjusted

**Adjusted for the acquisition of DOMCURA

Core capital ratio: 13.1 percent

MLP Group

[in € million]

	30/09/2015	31/12/2014
Intangible assets	172.8	156.2
Financial investments	140.0	145.3	• Equity ratio: 22.2%
Cash and cash equivalents	79.6	49.1	• Core capital ratio: 13.1%
Other receivables and other assets	95.9	117.7	• Intangible assets increased due to
			DOMCURA acquisition
Shareholders' equity	368.9	376.8
Equity ratio	22.2%	23.2%
Other liabilities	107.8	117.8
Total	1,664.0	1,624.7

• Highlights 9M/Q3 2015
• Key financial figures 9M/Q3 2015
• Consultants and clients
• Outlook and summary
• Questions & Answers

MLP attracts 19,300 new clients

Consultants Gross number of new clients

• Highlights 9M/Q3 2015
• Key financial figures 9M/Q3 2015
• Consultants and clients
• Outlook and summary
• Questions & Answers

Implemented growth initiatives systematically continued

Focus	Measures implemented in the first nine months
1. Online strategy	• Expansion of the internet presence in order to serve as a significant channel for attracting interested parties and new clients • Start of the new internet presence "MLP financify" in April 2015 to address the needs of young adults • Re-launch of the mlp.de website in July 2015 – creates basis for online contract conclusion for simple products by the end of the year
2. Recruiting	• New further training bonus introduced for new client consultants • Combination of high quality initial and further training with an easier start into self-employment • Opening of a new branch in the university segment, further more in planning	Make MLP more independent of short-term market influences
3. Broadening of the revenue base	• Development of a further, strategically relevant business segment in the area of non-life insurance through the ongoing acquisition of the DOMCURA Group – at the same time, considerable revenue synergies with the classical MLP business • Continued expansion of wealth management • Ongoing expansion of real estate brokerage

Integration of the underwriting agency DOMCURA is progressing according to plan

• Range of jointly-issued, high performance package-type products for consulting at MLP is currently under development

• Improvement of technical and process handling in non-life business at MLP is underway

• Further expansion of non-life business contributes to the broadening of the revenue mix and increases recurring revenue

• The underwriting agency services lengthen the value-added chain within the MLP Group

Outlook: Q4 with significant influence on the full-year results

Contribution of Q4 to the full-year EBIT

[in € million]

* Pro forma EBIT (adjusted for the acquisition of DOMCURA)

Administrative costs stay at previous year's level

Outlook

Administrative costs* (excl. DOMCURA)

[in € million]

* Definition: Personnel expenses, depreciation and amortisation and other operating expenses ** Adjusted to include one-off expenses

Sales revenue

In each case compared to the previous year

	2015
Revenue from old-age provision	Decreasing trend
Revenue from health insurance	Slight increase
Revenue from wealth management	Significant increase
Other commissions and fees (real estate)	Significant increase

• Growth in nearly all consulting areas in the first nine months
• Market environment remains difficult Q3 burdened by external effects
• Successful development in areas in which MLP can directly influence the factors
• Growth initiatives continued integration of DOMCURA is progressing according to plan
• Cost target confirmed

• Significant pick-up expected to the end of the year – full-year EBIT traditionally very dependent on the final few weeks of the year

• Highlights 9M/Q3 2015

• Key financial figures 9M/Q3 2015
• Consultants and clients
• Outlook and summary
• Questions & Answers

Contact

MLP Corporate Communications Alte Heerstr. 40 69168 Wiesloch Deutschland

Frank Heinemann, Head of External Communications

Andreas Herzog, Head of Investor Relations and Financial Communications

Tel.: +49 (0) 6222 308 8320 Fax: +49 (0) 6222 308 1131

investorrelations@mlp.de www.mlp-ag.de