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MLP SE Investor Presentation 2006
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Investor Presentation
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Preliminary results 2005: Excellent basis for future growth
Nils Frowein
CFO, MLP AG
February 15th, 2006
Market environment 2005
- y 2005 was a challenging year
- y Pension reform in Germany
- y New product environment
- y Major change in taxation of old-age pension products
- y Increased complexity in old-age provision
- y New business of German life insurance companies declined significantly
- y Number of new contracts: - 39 %
- y Premium sum from new contracts: - 46 %
Successful transition year for MLP
- y Leading the way in the product world
- y MLP quickly anticipated trends in the new product world of pensions
- y MLP took full advantage of new products
- y 40% market share for basic pensions (Basisrente)
- y Around 5% overall market share in 2005
- yOperating targets achieved
- y EBT target raised from € 100 mln. to € 110 mln. during 2005
- y EBT increased by 38 % to € 119.9 mln.
Successful re-positioning of the company
- yPortfolio restructuring completed as planned
- y Sale of life and non-life insurance subsidiaries
- y Total consideration of around € 334 mln. (of which € 40 mln. earn-out in 2005-2008)
- y Strategic development further advanced
- y Private Wealth Management business unit developed as planned
- y Excess cash used for the benefit of shareholders and balance sheet
- y Extensive € 180 mln. share buy-back programme
- y Extra dividend of € 0.30 per share
- y Termination of existing factoring agreements totalling € 124 mln.
ÆExcellent basis for further growth
Revenues developed as planned
MLP Group
Total revenue
.
Revenue development reflects adoption of new products
MLP Group
Quarterly revenue development 2005
- y Q1 and Q2 were affected by education and training
- y Q3 showed 5% growth over previous year
- y Q4 strongest quarter of the year
Strong performance in the new product world
MLP continued operations
Brokerage revenue split, 2005 (2004): € 470.0 mln. (€ 543.7 mln.)
Old-age provision Health insurance Non-life insurance Mutual funds Loans and mortgages Other income
MLP Group with strong earnings growth
Key figures
| A l l f i i € l g u r e s n m n. |
5 2 0 0 |
2 0 0 4 |
Q 5 4 2 0 0 |
Q 4 2 0 0 4 |
|---|---|---|---|---|
| C i d i t t o n n u e o p e r a o n s |
||||
| R e v e n u e s |
5 6 6. 2 |
6 2 2. 8 |
2 1 7. 9 |
2 5 7. 8 |
| E B I T |
6 9. 7 |
8 8. 3 |
3 6. 8 |
4 0. 6 |
| E B T |
6 8. 7 |
6 7 7. |
3 3 7. |
3 7. 5 |
| N f i t t e p r o |
4 0. 4 |
4 3. 0 |
2 4. 1 |
2 0. 6 |
| D i i d i * t t s c o n n e o p e r a o n s u |
||||
| E B T b f d i l l t e o r e s p o s a r e s u |
1. 2 5 |
9. 0 |
0 | -2 3 |
| f f N i b d i l l t t t e p r o e o r e s p o s a r e s u |
3 3. 9 |
7. 3 |
0 | -1 3 |
| D i l l t s p o s a r e s u |
1 2 4 5. |
0 | 0. 8 |
0 |
| f N i t t e p r o |
1 5 9. 3 |
7. 3 |
0. 8 |
-1 3 |
| M L P G r o u p |
||||
| E B T b f d i l l t e o r e s p o s a r e s u |
1 1 9. 9 |
8 6. 6 |
3 3 7. |
3 5. 2 |
| N f i t t e p r o |
1 9 9. 7 |
5 0. 3 |
2 4. 9 |
1 9. 3 |
| E P S i € n |
1. 8 4 |
0. 4 6 |
0. 2 3 |
0. 1 7 |
* until deconsolidation
Page 8 February 15th, 2006
Continued operations
Segment Consulting and Sales and segment Bank
| A l l f i i € l g r e s n m n. u |
5 2 0 0 |
2 0 0 4 |
Q 5 4 2 0 0 |
Q 4 2 0 0 4 |
|---|---|---|---|---|
| S C l i d S l t t e g m e n o n s n g a n a e s u |
||||
| T l t t o a s e g m e n r e v e n u e s |
4 8 1. 2 |
5 5 1. 6 |
1 8 7. 3 |
2 3 4. 5 |
| P f i b f ( E B T ) t t r o e o r e a x |
6 6. 0 |
9 0. 7 |
3 2. 7 |
4 5. 9 |
| N b i e w u s n e s s |
||||
| O l d- i i ( € b l ) a g e p r o s o n n v |
6. 7 |
1 1. 2 |
||
| H l h i t e a n s r a n c e u |
6. 4 5 |
6 0. 4 |
||
| L d t o a n s a n m o r g a g e s |
1, 0 1 6. 3 |
8 0 6. 0 |
||
| I f l i f d t n o w n o u n s |
9 1 9 7. |
0 5 7 5. |
||
| ( ) F d d € b l * t u n s u n e r m a n a g e m e n n |
2. 9 |
2. 5 |
||
| f E B T i i t o r e g n o p e r a o n s |
-8 0 |
-9 4 |
-3 7 |
-5 9 |
| O i l E B I T i ** t p e r a o n a m a r g n |
1 7 % |
2 0 % |
2 1 % |
2 4 % |
| S B k t e g m e n a n |
||||
| T l t t o a s e g m e n r e v e n u e s |
4. 9 5 |
4 9. 5 |
1 8 5. |
1 2. 3 |
| P f i b f ( E B T ) t t r o e o r e a x |
6 7. |
8 7. |
2. 9 |
1. 3 |
* excluding investment fund of former MLP life insurance ** excluding foreign operations
Page 9 February 15th, 2006
Number of clients up by 40,500 in 2005
MLP Group
Number of clients
y 2005 was a transition year
yPriority given to servicing customer base with new products
Slight increase in number of consultants
MLP Group
Number of consultants
yContinued low fluctuation
- yQuality of new consultants is the decisive factor
- y Hiring of consultants slower than expected
Sustainable high productivity in 2005
Segment Consulting and Sales
Revenue per consultant
- y Productivity developed as planned
- y Training and education pays off
- y Benchmark in the industry
MLP 2006: Leading the new pension product world
- y Clear lead over competitors in basic pension products
- y Further potential for "Riester" products
- y Demand for annuity products likely to increase (coverage of longevity risk)
- y Reduction of guaranteed interest stimulates sales of life insurance
- y Client-specific mix of pension products is becoming more and more important
Outlook 2006: Significant top line growth
Segment Consulting and Sales
Brokerage revenue 2006e
Growth in brokerage revenue
will be driven by
- yRollout of standard market commission structure
- y "Riester" step
y Sales growth
Outlook 2006: Strong leverage effect on earnings
MLP Group
EBT continued operations 2005, 2006e
Reasons for strong increase in earnings:
- y Sales growth
- y Rollout of standard market commission structure
- y "Riester" step
Outlook 2006: Excellent basis for further growth
Management focus 2006
- yAcquisition of additional consultants
- y Clear management focus on acquisition of additional consultants
- y Optimisation of the recruiting process
- y Active personnel marketing
- y Further increase in productivity and profitability
- y Active management of foreign business
- y Switzerland: operational business under consideration
- y UK: Management team strengthened
- y Further expansion of Private Wealth Management business unit
Targets for 2007e: Mid-term outlook remains valid
- y Group revenues: € 780 mln.
- y EBTe: € 160 mln.
- y Number of clients: ~825,000
- y Number of consultants: ~3,000
Contact
MLP Investor Relations Forum 7 69126 Heidelberg Germany
Contact: Investor Relations:
Michael Pfister, Head of Communications Helmut Achatz, Head of Investor Relations
Tel. +49 (0) 6221 308 8320 Fax.+49 (0) 6221 308 1131 E-mail: [email protected]
MLP Investor Relations information on the Internet: Financial reports, presentations and calendar etc. under http://www.mlp.de
Disclaimer
This presentation includes certain forward-looking statements. Actual results could differ materially from those included in the forward-looking statements due to various risk factors and uncertainties, including changes in business, economic and competitive conditions, regulatory reforms, foreign exchange rate fluctuations, uncertainties in litigation or investigative proceedings, and the availability of financing. Past performance is no guarantee for future performance. MLP AG does not undertake any responsibility to update the forward- looking statements contained in this presentation.
