Quarterly Group Statement for the first 9 months of 2019

MLP key figures

All figures in € million	Q3 2019	Q3 2018	9M 2019	9M 2018	Change in %
MLP Group
Total revenue	158.1	151.9	487.3	462.5	5.4 %
Revenue	154.1	147.0	475.9	451.0	5.5 %
Other revenue	4.0	5.0	11.4	11.6	–1.7 %
Earnings before interest and taxes (EBIT)	6.7	10.8	19.0	22.9	–17.0 %
EBIT margin (%)	4.2 %	7.1 %	3.9 %	5.0 %	–
Net profit	6.2	7.6	15.3	17.4	–12.1 %
Earnings per share (diluted/basic) (in €)	0.06	0.07	0.14	0.16	–12.5 %
Cash flow from operating activities	-16.3	16.9	112.7	67.4	67.2 %
Capital expenditure	16.8	16.6	19.8	22.6	–12.4 %
Shareholders' equity	–	–	409.5	424.81	–3.6 %
Equity ratio (in %)	–	–	15.4 %	17.5 %1	–
Balance sheet total	–	–	2,662.4	2,421.01	10.0 %
Private clients (families)	–	–	547,900	541,1501	1.2 %
Corporate and institutional clients	–	–	21,300	20,9001	1.9 %
Consultants	–	–	1,932	1,9281	0.2 %
Branch offices	–	–	130	1311	–0.8 %
University teams	–	–	89	771	15.6 %
Employees	–	–	1,812	1,7221	5.2 %
Brokered new business
Old-age provision (premium sum)	1,033.4	832.0	2,546.5	2,274.9	11.9 %
Loans and mortgages	473.7	425.4	1,449.1	1,413.7	2.5 %
Assets under management (in € billion)	–	–	38.1	34.51	10.4 %
Non-life insurance (premium volume)	–	–	400.5	385.61	3.9 %
Real estate (brokered volume)	78.3	59.5	176.3	176.5	–0.1 %

¹ As of December 31, 2018.

THE FIRST NINE MONTHS OF 2019 AT A GLANCE

Total revenue rose by 5 % to € 487.3 million in the first nine months (9M 2018: € 462.5 million)
Gains in virtually all fields of consulting greatest dynamics recorded in old-age provision with an increase of 9 %
At € 19.0 million, earnings before interest and taxes (EBIT) are below the previous year following a positive one-off effect in Q3 2018 (€ 22.9 million) – yet still fully in line with planning
Number of consultants rises to 1,932 (September 30, 2018: 1,888) with further recruitments anticipated at the end of the year
Outlook confirmed: MLP is anticipating a good closing quarter and still expects to record a slight increase in EBIT for the financial year

4 Introductory notes
4 Profile
5 Quarterly Group statement for the first nine months of 2019
5 Fundamental principles of the Group
5 Business performance
6 Results of operations
10 Financial position
11 Net assets
13 Segment report
16 Employees and self-employed client consultants
17 Forecast
18 Income statement and statement of comprehensive income
19 Statement of financial position
20 Condensed statement of cash flow
20 Revenue
21 Statement of changes in equity
22 Reportable business segments

Introductory notes

Profile

The MLP Group is the partner for all financial matters.

Quarterly Group Statement for the first nine months of 2019

FUNDAM ENTAL P RIN CI PL ES OF THE GROU P

Change to organisation and administration

BU SIN ESS PERFO RMAN CE

New clients

RESULT S OF OPERATIONS

Development of total revenue

Analysis of expenses

Earnings trend

All figures in € million	9M 2019	9M 2018	Change in %
Total revenue	487.3	462.5	5.4 %
Gross profit1	231.7	226.9	1.4 %
Gross profit margin (%)	47.5 %	49.1 %	–
EBIT	19.0	22.9	–17.4 %
EBIT margin (%)	3.9 %	4.9 %	–
Financial result	–0.7	–0.5	–40.0 %
EBT	18.2	22.3	–18.4 %
EBT margin (%)	3.7 %	4.8 %	–
Income taxes	–2.9	–4.9	40.8 %
Net profit	15.3	17.4	–12.1 %
Net margin (%)	3.1 %	3.8%	–

Structure and changes in earnings in the Group

¹ Definition: Gross profit is the result of total revenue less commission expenses, interest expenses and any changes in inventory.

FINANC IAL PO SIT ION

Aims of financial management

Financing analysis

Liquidity analysis

Capital expenditure analysis

NET A SSETS

Analysis of the asset and liability structure

SEGMENT REPO RT

Financial Consulting segment

Banking segment

FERI segment

DOMCURA segment

Holding and Other segment

EMP LO YEES AND SELF -EM PLOYED CLIENT CON SULTA NTS

Segment	Sep. 30, 2019	Sep. 30, 2018
Financial Consulting	1,087	1,055
Banking	188	179
FERI	234	220
DOMCURA	278	262
Holding and Other	25	6
Total	1,812	1,722

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

FORECA ST

Income statement and statement of comprehensive income

Income statement for the period from January 1 to September 30, 2019

All figures in €'000
	3rd quarter 2019	3rd quarter 2018	9 months 2019	9 months 2018

Revenue	154,108	146,960	475,897	450,960
Other revenue	3,974	4,962	11,419	11,568
Total revenue	158,082	151,922	487,315	462,528
Inventory changes2	1,613	-	1,613	-
Commission expenses	-83,603	-74,243	-256,836	-235,225
Interest expenses	-148	39	-432	-414
Valuation result/loan loss provisions	-652	-863	-2,147	-827
Personnel expenses	-32,087	-31,666	-97,916	-94,217
Depreciation and impairments	-6,541	-4,017	-19,138	-11,729
Other operating expenses	-30,763	-31,156	-95,624	-99,109
Earnings from investments accounted for using the equity method	842	792	2,115	1,880
Earnings before interest and tax (EBIT)	6,743	10,808	18,951	22,887
Other interest and similar income	237	453	430	529
Other interest and similar expenses	-376	-582	-1,203	-1,065
Valuation result not relating to operating activities	-4	-7	37	-4
Finance cost	-144	-136	-736	-539
Earnings before tax (EBT)	6,599	10,671	18,214	22,347
Income taxes	-361	-3,040	-2,941	-4,921
Net profit	6,238	7,632	15,273	17,427
Of which attributable to
owners of the parent company	6,295	7,632	15,330	17,427
minority interests	-57	-	-57	-

Earnings per share in €1
basic/diluted	0.06	0.07	0.14	0.16

1 Basis of calculation: average number of ordinary shares outstanding as of September 30, 2019: 109,205,421.

²Due to the acquisition of a majority stake in DEUTSCHLAND.Immobilien the item inventory changes was disclosed in the income statement.

Statement of comprehensive income for the period from January 1 to September 30, 2019

All figures in €'000	3rd quarter	3rd quarter	9 months	9 months
	2019	2018	2019	2018

Net profit	6,238	7,632	15,273	17,427
Gains/losses due to the revaluation of defined benefit obligations	-7,436	418	-14,383	841
Deferred taxes on non-reclassifiable gains/losses	2,196	-123	4,247	-199
Non-reclassifiable gains/losses	-5,239	295	-10,137	642
Other comprehensive income	-5,239	295	-10,137	642
Total comprehensive income	999	7,926	5,137	18,069

Of which attributable to
owners of the parent company	1,056	7,926	5,194	18,069
minority interests	-57	-	-57	-

Statement of financial position

Assets as of September 30, 2019

All figures in €'000	Sept 30, 2019	Dec 31, 2018

Intangible assets	186,040	155,892
Property, plant and equipment	134,026	78,270
Investments accounted for using the equity method	4,254	4,186
Deferred tax assets	8,958	5,368
Receivables from clients in the banking business	830,225	761,027
Receivables from banks in the banking business	710,748	694,210
Financial assets	172,385	165,279
Inventories	7,957	-
Tax refund claims	16,632	12,758
Other receivables and assets	147,629	158,123
Cash and cash equivalents	443,542	385,926
Total	2,662,396	2,421,038

* Due to the acquisition of a majority stake in DEUTSCHLAND.Immobilien the item inventories was disclosed in the balance sheet.

Liabilities and shareholders' equity as of September 30, 2019

All figures in €'000	Sept 30, 2019	Dec 31, 2018

Equity attributable to MLP SE shareholders	408,378	424,826
Minority interest*	1,135	-
Total Shareholders' equity	409,513	424,826
Provisions	99,071	94,485
Deferred tax liabilities	10,371	10,245
Liabilities due to clients in the banking business	1,818,203	1,638,892
Liabilities due to banks in the banking business	96,292	81,625
Tax liabilities	4,615	5,197
Other liabilities	224,331	165,768
Total	2,662,396	2,421,038

* Due to the acquisition of a majority stake in DEUTSCHLAND.Immobilien the item minority interest was disclosed in the balance sheet.

Condensed statement of cash flow

Condensed statement of cash flow for the period from January 1 to September 30, 2019

All figures in €'000	9 months 2019	9 months 2018
Cash and cash equivalents at beginning of period	385,926	301,013
Cash flow from operating activities	112,711	67,370
Cash flow from investing activities	-24,590	-17,627
Cash flow from financing activities	-30,504	-21,866
Change in cash and cash equivalents	57,616	27,877
Cash and cash equivalents at end of period	443,542	328,890

Condensed statement of cash flow for the period from July 1 to September 30, 2019

All figures in €'000	3rd quarter 2019	3rd quarter 2018

Cash and cash equivalents at beginning of period	471,725	331,571

Cash flow from operating activities	-16,345	16,875
Cash flow from investing activities	-8,858	-19,556
Cash flow from financing activities	-2,980	-
Change in cash and cash equivalents	-28,183	-2,681
Cash and cash equivalents at end of period	443,542	328,890

Revenue

	3rd quarter	3rd quarter	9 months	9 months
All figures in €'000	2019	2018	2019	2018
Wealth management	55,767	55,234	160,474	152,757
Old-age provision	50,068	46,445	134,041	122,615
Non-life insurance	21,178	19,990	102,903	97,295
Health insurance	11,712	11,933	35,513	35,127
Real estate brokerage	6,118	4,579	14,260	14,635
Loans and mortgages	4,602	3,970	13,599	12,852
Other commission and fees	618	788	2,609	2,811
Total commission income	150,064	142,937	463,400	438,092
Interest income	4,045	4,022	12,497	12,868
Total	154,108	146,960	475,897	450,960

Statement of changes in equity

Statement of changes in equity for the period from January 1 to September 30, 2019

						Equity attributable to MLP SE shareholders
All figures in €'000	Share capital	Capital reserves	Gains/losses from changes in the fair value of available-for sale securities1	Revaluation gains/losses re lated to defined benefit obliga tions after taxes	Retained earnings	Total	Minority interest2	Total shareholders' eq uity
As of January 1, 2018	109,335	148,754	959	-12,184	158,072	404,935	-	404,935
Effects from the first-time adoption of IFRS 9/IFRS 15	-	-	-959	-	8,807	7,848	-	7,848
As of January 1, 2018	109,335	148,754	-	-12,184	166,880	412,783	-	412,783
Acquisition of treasury stock	-4	-	-	-	-18	-23	-	-23
Share-based payment	-	-575	-	-	-	-575	-	-575
Dividend	-	-	-	-	-21,866	-21,866	-	-21,866
Transactions with owners	-4	-575	-	-	-21,885	-22,464	-	-22,464
Net profit	-	-	-	-	17,427	17,427	-	17,427
Other comprehensive income	-	-	-	642	-	642	-	642
Total comprehensive income	-	-	-	642	17,427	18,069	-	18,069
As of September 30, 2018	109,331	148,179	-	-11,542	162,422	408,388	-	408,388
As of January 1, 2019	109,167	149,227	-	-12,518	178,951	424,826	-	424,826
Acquisition of treasury stock	168	-	-	-	555	722	-	722
Share-based payment	-	-497	-	-	-	-497	-	-497
Dividend	-	-	-	-	-21,866	-21,866	-	-21,866
Transactions with owners	168	-497	-	-	-21,311	-21,641	-	-21,641
Net profit	-	-	-	-	15,330	15,330	-57	15,273
Other comprehensive income	-	-	-	-10,137	-	-10,137	-	-10,137
Total comprehensive income	-	-	-	-10,137	15,330	5,194	-57	5,137
Changes to the scope of con solidation	-	-	-	-	-	-	1,192	1,192
As of September 30, 2019	109,334	148,729	-	-22,654	172,970	408,378	1,135	409,513

1 Reclassifiable gains/losses.

² Due to the acquisition of a majority stake in DEUTSCHLAND.Immobilien the item minority interest was disclosed in the balance sheet.

Reportable business segments

Information regarding reportable business segments (quarterly comparison)

		Financial consulting		Banking		FERI		DOMCURA		Holding and Other* Consolidation			Total

All figures in €'000	3rd quarter 2019	3rd quarter 2018	3rd quarter 2019	3rd quarter 2018	3rd quarter 2019	3rd quarter 2018	3rd quarter 2019	3rd quarter 2018	3rd quarter 2019	3rd quarter 2018	3rd quarter 2019	3rd quarter 2018	3rd quarter 2019	3rd quarter 2018
Revenue	80,737	74,594	20,161	18,834	40,540	41,262	15,098	14,398	1	-	-2,428	-2,129	154,108	146,960
of which total inter-segment revenue	1,378	1,271	1,050	858	-	-	-	-	-	-	-2,428	-2,129	-	-
Other revenue	4,211	3,811	1,066	2,933	2,457	1,624	178	208	2,466	2,202	-6,405	-5,816	3,974	4,962
of which total inter-segment revenue	3,147	2,948	918	698	-	–	-	–	2,339	2,171	-6,405	-5,816	-	–
Total revenue	84,948	78,405	21,227	21,767	42,998	42,887	15,276	14,606	2,466	2,202	-8,833	-7,945	158,082	151,922
Inventory changes	-	-	-	-	-	-	-	-	1,613	-	-	-	1,613	-
Commission expenses	-40,855	-37,607	-8,260	-7,761	-25,165	-22,145	-9,831	-8,801	-1,640	-	2,147	2,070	-83,603	-74,243
Interest expenses	-	-	-145	39	-	-	-	-	-	-	-3	-	-148	39
Valuation result/loan loss provisions	103	206	-773	-1,017	16	-36	10	-16	-8	0	-	-	-652	-863
Personnel expenses	-16,182	-15,560	-2,811	-2,651	-8,275	-9,061	-3,783	-3,432	-1,036	-962	-	-	-32,087	-31,666
Depreciation and impairments	-4,927	-2,953	-89	-23	-568	-320	-513	-325	-444	-396	-	-	-6,541	-4,017
Other operating expenses	-22,522	-23,039	-8,344	-7,723	-2,169	-2,272	-1,954	-1,893	-2,315	-2,055	6,540	5,825	-30,763	-31,156
Earnings from investments accounted for using the equity method	843	792	-	-	-	-	-	-	-1	-	-	-	842	792
Segment earnings before interest and tax (EBIT)	1,409	244	804	2,631	6,837	9,053	-795	139	-1,364	-1,211	-148	-49	6,743	10,808
Other interest and similar income	115	18	12	458	0	-4	-4	0	119	-20	-6	0	237	453
Other interest and similar expenses	-243	-103	-7	-9	-106	-31	-8	-1	-151	-466	138	27	-376	-582
Valuation result not relating to operating activ ities	6	2	-	-	0	0	-3	0	-7	-9	-	-	-4	-7
Finance cost	-122	-82	5	450	-106	-35	-14	0	-38	-495	132	27	-144	-136
Earnings before tax (EBT)	1,287	162	810	3,081	6,731	9,019	-809	139	-1,402	-1,707	-17	-23	6,599	10,671
Income taxes													-361	-3,040
Net profit													6,238	7,632
Of which attributable to
owners of the parent company													6,295	7,632
minority interests													-57	-

*The acquisition of a majority stake in DEUTSCHLAND.Immobilien has changed the composition and thus also the name of the segment; the project business of the DI Group is now reported in addition to the holding company.

Information regarding reportable business segments (9-months-comparison)

		Financial consulting		Banking		FERI		DOMCURA		Holding and Other*		Consolidation		Total

All figures in €'000	9 months 2019	9 months 2018	9 months 2019	9 months 2018	9 months 2019	9 months 2018	9 months 2019	9 months 2018	9 months 2019	9 months 2018	9 months 2019	9 months 2018	9 months 2019	9 months 2018
Revenue	239,380	225,601	58,212	55,641	116,562	111,861	70,660	66,048	1	-	-8,918	-8,190	475,897	450,960
of which total inter-segment revenue	6,259	5,781	2,658	2,409	-	-	-	-	-	-	-8,918	-8,190	-	-
Other revenue	14,817	13,447	3,321	4,933	4,296	3,263	802	1,347	7,000	6,803	-18,818	-18,224	11,419	11,568
of which total inter-segment revenue	9,605	9,536	2,537	2,175	-	-	-	-	6,676	6,513	-18,818	-18,224	-	-
Total revenue	254,198	239,047	61,533	60,574	120,858	115,124	71,462	67,395	7,001	6,803	-27,736	-26,415	487,315	462,528
Inventory changes	-	-	-	-	-	-	-	-	1,613	-	-	-	1,613	-
Commission expenses	-120,940	-112,539	-23,836	-22,867	-72,687	-64,728	-46,249	-43,172	-1,640	-	8,516	8,081	-256,836	-235,225
Interest expenses	-	-	-364	-414	-	-	-	-	-	-	-68	-	-432	-414
Valuation result/loan loss provisions	-53	-101	-2,029	-656	-55	-25	-1	-46	-8	0	-	-	-2,147	-827
Personnel expenses	-50,321	-48,614	-8,841	-7,903	-24,032	-24,238	-11,532	-10,818	-3,191	-2,644	-	-	-97,916	-94,217
Depreciation and impairments	-14,465	-8,585	-183	-70	-1,683	-913	-1,546	-975	-1,261	-1,186	-	-	-19,138	-11,729
Other operating expenses	-70,474	-72,984	-25,188	-25,220	-6,577	-7,215	-5,365	-5,384	-6,946	-6,531	18,925	18,224	-95,624	-99,109
Earnings from investments accounted for using the equity method	2,116	1,880	-	-	-	-	-	-	-1	-	-	-	2,115	1,880
Segment earnings before interest and tax (EBIT)	61	-1,894	1,092	3,444	15,824	18,007	6,769	6,999	-4,433	-3,558	-362	-110	18,951	22,887
Other interest and similar income	364	77	25	485	-1	1	-50	6	55	-23	37	-16	430	529
Other interest and similar expenses	-857	-384	-26	-28	-314	-78	-23	-8	-333	-648	349	81	-1,203	-1,065
Valuation result not relating to operating activ ities	20	3	-	-	0	0	-2	1	20	-7	-	-	37	-4
Finance cost	-474	-305	0	457	-315	-77	-75	-1	-258	-678	386	64	-736	-539
Earnings before tax (EBT)	-413	-2,199	1,092	3,901	15,509	17,929	6,694	6,998	-4,691	-4,236	24	-45	18,214	22,347
Income taxes													-2,941	-4,921
Net profit													15,273	17,427
Of which attributable to
owners of the parent company													15,330	17,427
minority interests													-57	-

Financial calendar 2019

NOVEMBER

Financial calendar 2020

MARCH

MAY

JUNE

AUGUST