MLP SE — Interim / Quarterly Report 2020

May 15, 2020

MLP key figures

All figures in € million	Q1 2020	Q1 2019	Change in %
MLP Group
Total revenue	193.7	177.8	8.9 %
Revenue	189.4	174.0	8.9 %
Other revenue	4.3	3.8	13.2 %
Earnings before interest and tax (EBIT)	10.7	12.5	–14.4 %
EBIT margin (%)	5.5	7.0	–
Net profit	7.6	9.1	–16.5 %
Earnings per share (diluted/basic) (in €)	0.07	0.08	–12.5 %
Cash flow from operating activities	163.7	117.0	39.9 %
Capital expenditure	2.2	1.2	83.3 %
Shareholders' equity	442.0	437.4 1	1.1 %
Equity ratio (in %)	15.1	15.6 1	–
Balance sheet total	2,935.2	2,799.6 1	4.8 %
Private clients (families)	550,200	549,580 1	0.1 %
Corporate and institutional clients	21,600	21,850 1	–1.1 %
Consultants	1,995	1,981 1	0.7 %
Branch offices	129	130 1	–0.8 %
University teams.	95	93 1	2.2 %
Employees	1,836	1,745	5.2 %
Brokered new business
Old-age provision (premium sum)	685.4	722.1	–5.1 %
Loans and mortgages	610.8	492.1	24.1 %
Assets under management (in € billion)	37.2	39.2 1	–5.1 %
Non-life insurance (premium volume)	415.0	405.5 1	2.3 %
Real estate (brokered volume)	77.9	39.5	97.2 %

1 As of December 31, 2019.

THE FIRST QUARTER 2020 AT A GLANCE

• Total revenue grows considerably by 9 % to € 193.7 million in the opening quarter
• Growth recorded in all parts of the MLP Group and across the key fields of consulting
• Number of consultants now 1,995 the first increase in an opening quarter for 10 years
• Solid earnings performance: EBIT at € 10.7 million (Q1 2019: € 12.5 million) despite initial effects of the coronavirus crisis in March
• MLP anticipates an EBIT of € 34 to 42 million for 2020 mid-term planning: EBIT rising to € 75 to 85 million by the end of 2022

Table of contents

• 4 Introductory notes
• 4 Profile
• 5 Quarterly Group statement for the 1st quarter of 2020
  • 5 Fundamental principles of the Group
  • 5 Business performance
  • 6 Results of operations
  • 10 Financial position
  • 11 Net assets
  • 12 Segment report
  • 15 Employees and self-employed client consultants
  • 16 Forecast
  • 17 Income statement and statement of comprehensive income
  • 18 Statement of financial position
  • 19 Condensed statement of cash flow
  • 19 Revenue
  • 20 Statement of changes in equity
  • 21 Reportable business segments

Introductory notes

Profile

The MLP Group is the partner for all financial matters.

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Quarterly Group Statement for the 1st quarter of 2020

FU NDAMENTAL PRINC IPLES OF TH E GROU P

Change to organisation and administration

BU SINESS PERFORMANC E

New clients

RESU LTS OF OPERATIONS

Development of total revenue

Analysis of expenses

Earnings trend

EBIT development (all figures in € million)
Q1 2020	10.7
Q1 2019	12.5

All figures in € million	Q1 2020	Q1 2019	Change in %
Total revenue	193.7	177.8	8.9 %
Gross profit 1	89.9	83.6	7.5 %
Gross profit margin (%)	46.4 %	47.0 %	–
EBIT	10.7	12.5	–14.4 %
EBIT margin (%)	5.5 %	7.0 %	–
Finance cost	–0.9	–0.2	>–100 %
EBT	9.8	12.3	–20.3 %
EBT margin (%)	5.0 %	6.9 %	–
Income taxes	–2.2	–3.1	29.0 %
Net profit	7.6	9.1	–16.5 %
Net margin (%)	3.9 %	5.1 %	–

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 POSITION

Aims of financial management

Financing analysis

Liquidity analysis

Capital expenditure analysis

NET ASSETS

Analysis of the asset and liability structure

SEGMENT REPORT

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Financial Consulting segment

Banking segment

FERI segment

DOMCURA segment

Holding and Other segment

EMPLOYEES AND SELF -EMPLO YED C LIENT C ONSU LTANTS

Segment	March 31, 2020	March 31, 2019
Financial Consulting 1	1,091	1,057
Banking	192	184
FERI	222	235
DOMCURA	290	263
Holding and Other 2	41	6
Total	1,836	1,745

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

1 Including TPC, ZSH, DI Sales, DI Web, DI IT and MLP Dialog

2 Since 2019 including DI AG and DI Projects

FOREC AST

Income statement and statement of comprehensive income

Income statement for the period from January 1 to March 31, 2020

All figures in €'000	1st quarter 2020	1st quarter 2019
Revenue	189,412	174,011
Other revenue	4,283	3,801
Total revenue	193,695	177,812
Inventory changes	2,264	-
Commission expenses	-105,995	–94,081
Interest expenses	-120	–133
Valuation result/loan loss provisions	-3,605	–727
Personnel expenses	-36,100	–33,631
Depreciation and impairments	-6,819	–6,301
Other operating expenses	-33,466	–30,934
Earnings from investments accounted for using the equity method	814	515
Earnings before interest and tax (EBIT)	10,668	12,522
Other interest and similar income	30	148
Other interest and similar expenses	-915	–429
Valuation result not relating to operating activities	-25	36
Finance cost	-910	–246
Earnings before tax (EBT)	9,758	12,276
Income taxes	-2,182	–3,132
Net profit	7,575	9,144
Of which attributable to
owners of the parent company	7,818	9,144
minority interests	-243	-
Earnings per share in €1
basic/diluted	0.07	0.08

1 Basis of calculation: average number of ordinary shares outstanding as of March 31:2020 109,212,844.

Statement of comprehensive income for the period from January 1 to March 31, 2020

All figures in €'000 Net profit Gains/losses due to the revaluation of defined benefit obligations
	1st quarter	1st quarter
	2020	2019
	7,575	9,144
	-534	–5,257
Deferred taxes on non-reclassifiable gains/losses	157	1,546
Non-reclassifiable gains/losses	-378	–3,710
Other comprehensive income	-378	–3,710
Total comprehensive income	7,198	5,433
Of which attributable to
owners of the parent company	7,441	5,433
minority interests	-243	-

Statement of financial position

Assets as of March 31, 2020

All figures in €'000	March 31, 2020	Dec. 31, 2019
Intangible assets	181,821	183,070
Property, plant and equipment	128,983	130,914
Investments accounted for using the equity method	5,951	5,138
Deferred tax assets	7,787	7,254
Receivables from clients in the banking business	840,258	872,175
Receivables from banks in the banking business	750,110	728,085
Financial assets	171,013	178,584
Inventories	12,808	10,533
Tax refund claims	4,936	4,493
Other receivables and assets	156,124	168,587
Cash and cash equivalents	675,417	510,778
Total	2,935,208	2,799,611

Liabilities and shareholders' equity as of March 31, 2020

All figures in €'000	March 31, 2020	Dec. 31, 2019
Equity attributable to MLP SE shareholders	441,474	436,605
Minority interests	544	787
Total shareholders' equity	442,018	437,392
Provisions	108,518	101,596
Deferred tax liabilities	10,272	10,690
Liabilities due to clients in the banking business	1,999,778	1,894,843
Liabilities due to banks in the banking business	101,139	98,409
Tax liabilities	7,379	6,113
Other liabilities	266,104	250,568
Total	2,935,208	2,799,611

Condensed statement of cash flow

Condensed statement of cash flow for the period from January 1 to March 31, 2020

All figures in €'000	1st quarter 2020	1st quarter 2019
Cash and cash equivalents at beginning of period	510,778	385,926
Cash flow from operating activities	163,683	116,991
Cash flow from investing activities	3,938	-1,340
Cash flow from financing activities	-2,982	-2,768
Change in cash and cash equivalents	164,639	112,883
Cash and cash equivalents at end of period	675,417	498,809

Revenue

	1st quarter	1st quarter
All figures in €'000	2020	2019
Non-life insurance	64,452	59,885
Wealth management	55,311	50,243
Old-age provision	39,377	38,017
Health insurance	13,118	12,115
Real estate brokerage	7,492	3,306
Loans and mortgages	4,328	5,123
Other commission and fees	1,256	1,070
Total commission income	185,336	169,759
Interest income	4,076	4,252
Total	189,412	174,011

Statement of changes in equity

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Statement of changes in equity for the period from January 1 to March 31, 2020

All figures in €'000	Share capital	Capital reserves	Revaluation gains/losses related to defined benefit obligations after taxes	Retained earnings	Total	Minority interests	Total shareholders' equity
As of Jan. 1, 2019	109,167	149,227	-12,518	178,951	424,826	-	424,826
Acquisition of treasury stock	-372	-	-	-1,260	-1,632	-	-1,632
Share-based payment	-	565	-	-	565	-	565
Transactions with owners	-372	565	-	-1,260	-1,067	-	-1,067
Net profit	-	-	-	9,144	9,144	-	9,144
Other comprehensive income	-	-	-3,710	-	-3,710	-	-3,710
Total comprehensive income	-	-	-3,710	9,144	5,433	-	5,433
As of March. 31, 2019	108,794	149,792	-16,228	186,835	429,193	-	429,193
As of Jan. 1, 2020	109,334	149,853	-17,547	194,966	436,605	787	437,392
Acquisition of treasury stock	-566	-	-	-2,641	-3,207	-	-3,207
Share-based payment	-	636	-	-	636	-	636
Transactions with owners	-566	636	-	-2,641	-2,572	-	-2,572
Net profit	-	-	-	7,818	7,818	-243	7,575
Other comprehensive income	-	-	-378	-	-378	-	-378
Total comprehensive income	-	-	-378	7,818	7,441	-243	7,198
As of March. 31, 2020	108,768	150,489	-17,925	200,143	441,474	544	442,018

Reportable business segments

Information regarding reportable business segments

	Financial Consulting		Banking		FERI		DOMCURA		Holding and Others		Consolidation		Total
All figures in €'000	1st quarter 2020	1st quarter 2019	1st quarter 2020	1st quarter 2019	1st quarter 2020	1st quarter 2019	1st quarter 2020	1st quarter 2019	1st quarter 2020	1st quarter 2019	1st quarter 2020	1st quarter 2019	1st quarter 2020	1st quarter 2019
Revenue	91,259	84,202	21,202	18,101	39,257	36,787	42,848	39,278	2	-	-5,157	-4,357	189,412	174,011
of which total inter-segment revenue	3,933	3,559	1,223	799	-	–	-	-	-	-	-5,157	-4,357	-	-
Other revenue	6,581	5,562	816	997	576	967	353	178	3,242	2,330	-7,285	-6,233	4,283	3,801
of which total inter-segment revenue	3,433	3,270	736	794	-	-	-	–	3,116	2,168	-7,285	-6,233	-	-
Total revenue	97,841	89,764	22,018	19,097	39,833	37,754	43,201	39,456	3,244	2,330	-12,442	-10,590	193,695	177,812
Inventory changes	-	-	-	-	-	-	-	-	2,264	-	-	-	2,264	-
Commission expenses	-47,246	-42,733	-9,010	-7,202	-24,799	-23,277	-27,351	-25,159	-2,265	-	4,676	4,289	-105,995	-94,081
Interest expenses	-	-	-65	-81	-	-	-	-	-	-	-55	-52	-120	-133
Valuation result/loan loss provisions	-272	-121	-3,116	-513	57	-12	-125	-81	-148	-	-	-	-3,605	-727
Personnel expenses	-18,776	-17,384	-3,342	-2,891	-7,594	-7,711	-4,746	-4,048	-1,642	-1,597	-	-	-36,100	-33,631
Depreciation and impairment	-5,007	-4,798	-94	-32	-568	-552	-572	-506	-578	-413	-	-	-6,819	-6,301
Other operating expenses	-24,746	-23,079	-9,158	-8,091	-2,542	-2,250	-1,766	-1,689	-2,583	-2,020	7,328	6,194	-33,466	-30,934
Earnings from investments accounted for using the equity method	729	515	-	-	-	-	-	-	85	-	-	-	814	515
Segment earnings before interest and tax (EBIT)	2,522	2,165	-2,766	287	4,388	3,953	8,641	7,974	-1,623	-1,700	-494	-158	10,668	12,522
Other interest and similar income	26	154	3	7	-2	3	-58	-35	40	-22	21	40	30	148
Other interest and similar expenses	-811	-325	-6	-7	-92	-94	-10	-8	-440	-95	444	100	-915	-429
Valuation result not relating to operating activities	-25	10	-	-	-	0	-	2	-	23	-	-	-25	36
Finance cost	-811	-161	-2	0	-93	-91	-68	-41	-400	-94	465	140	-910	-246
Earnings before tax (EBT)	1,711	2,004	-2,768	287	4,294	3,863	8,573	7,933	-2,023	-1,794	-29	-18	9,758	12,276
Income taxes													-2,182	–3,132
Net profit													7,575	9,144
Of which attributable to
owners of the parent company													7,818	9,144
Minority interests													-243	-

Financial calendar 2020

MARCH

MAY

JUNE

AUGUST

NOVEMBER

MLP SE

Alte Heerstraße 40 69168 Wiesloch Tel +49 (0) 6222 • 308 • 8320 Fax +49 (0) 6222 • 308 • 1131 www.mlp-se.com