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MLP SE — Investor Presentation 2008
Apr 24, 2008
289_ip_2008-04-24_927e7dc3-b976-44ba-9335-d5e09d603485.pdf
Investor Presentation
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Shaping change – Creating opportunities
Helmut Achatz Head of IR
LBBW German Small & Mid Cap Conference London
April 24, 2008
Agenda
- •Business model
- •Highlights 2007
- •Strategy and market developments
- •Number of clients and consultants
- •Outlook and summary
- • Appendix
- •Preliminary results 2007
- •MLP´s Wealth Management concepts
- •Contact
MLP Private Finance: Intelligent concepts for retirement provision, insurance coverage, investment and finance
Business model
Unique business model
Combination of quality of advice - customer focus - independence makes business model unique
Qualified consultants Integral approach Client goals form the focus Ongoing support Long-term client relationships Comprehensive serviceBroad product range High product quality Partners with strong performance High level of innovation Consulting quality Independence
Tailored solutions
Target group-specific know-how
Target group-specific form of address
Attractive risk profiles
MLP concludes 2007 with significant growth
Highlights – Preliminary results continuing operations
- yEBIT margin of 17% emphasises high profitability
- yCross-selling rate further improved to 6.9
Extensive statutory changes
Regulatory requirements
| M 2 2 2 0 0 7 a y , |
N b 1 2 0 0 7 o e m e r v , |
B i i f 2 0 0 8 e g n n n g o |
|---|---|---|
| i i i I M d D t n s r a n c e e a o n r. u |
i M F I D |
G I C L t t e r m a n n s o n r a c a w |
| I b k n s r a n c e r o e r a g e u |
/ i i B k F t t a n s n n e s m e n s v |
/ I B k n s r e r s r o e r s u |
| R i i i t s n g r e q u r e m e n s y i h t c o n c e r n n g e f f l i i i t q u a c a o n o l d h t t t c o n s u a n s a n e f l i l i t t q u a y o c o n s u n g E i d i t t t e n s e o c m e n a o n y x v u i t r e q r e m e n s u |
f B d i h t y r o a e n n g o e l i i f i t t c o n s u n g n o r m a o n , d d i t t a n o c u m e n a o n i t r e q u r e m e n s S i i t t t r c e r r e q r e m e n s y u d i t r e g a r n g r a n s p a r e n c y |
I i h d n c r e a s e n c a s s u r r e n e r y / f l d i h t v a u e s s p r e a n g o e d i i b i d i i i t t t s r u o n a n a c q u s o n t c o s s I d t n c r e a s e c o s y f l i f d t r a n s p a r e n c o r e a n y h l h i t e a c a r e n s r a n c e u l i i p o c e s |
| f B d i h t r o a e n n g o e y f i i b l i i t t n o r m a o n o g a o n s |
Independent brokers are regarded as the best partners
Effects of the regulation in Great Britain
| D l f t e v e o p m e n o a l t n e w r e g u a o r y h i t t a o r u y ( ) L A U T R O |
D i l f l • s c o s u r e o e x e m p a r y i d f t a c c o u n s s e r v c e s a n e e s , L A U T R O b P l e c o m e s e r s o n a • I A h i t t t t n v e s m e n u o r y "R W h L " t t e a s o n y e e r • |
D i l f i i • s c o s u r e o c o m m s s o n s R l h i i t t t e g u a o r y a u o r e s m e r g e • b h F S A t t o e c o m e e |
||
|---|---|---|---|---|
| 1 9 8 8 |
2 0 0 0 |
2 0 0 7 |
||
- Significant fall in the number of brokers Æ rising quality
- Consolidation in the market
- Sustained rising sales volume
- Clients almost exclusively choose commissions for payment
- Independent brokers are regarded as the best providers
Independent brokers gain significant market shares
Effects of the regulation in Great Britain
Sales by channel in 1992 Sales by channel in 2006
MLP is optimally prepared to meet the requirements of the future
Extensive new regulations:
- xBrokerage guideline, MiFID, VVG
- x Flat-rate capital gains tax, healthcare reform
Increasing competition:
x Banks and new providers are entering the market
High client requirements:
x Clients demand quality and comprehensive consultation
High complexity:
x Numerous products/high tax complexity
- x Capability to adjust rapidly to changed framework conditions
- x Highly developed IT systems and processes
- xUnique positioning in the market
- x Industry-leading education and further training
- x High quality target group and excellent quality parameters
Æ Excellent prospects through clear positioning and targeted further development
Growth through holistic consulting approach
High revenue potential with old-age pension provisions
Potential sales revenue – MLP Finanzdienstleistungen AG per year and client
High potential in old-age pension provision
The pension level of the future – as a percentage of gross salary*
* Level of state pension according to current legislation. Selected countries. Basis for calculation: employee, aged 20 who starts full time work in 2004 and continues working up until the legal pension age (average earner).
Business segment - Occupational pensions firmly established
Occupational pensions
- •Continuation of the positive business development
- Together with BERAG, MLP covers the entire spectrum of occupational pensions
- •Number of licensed consultants increased to 1,300
- Around 7% share of new business in old-age pension provision, continued high growth rates
- •Extensive cross-selling
- •Acquisition of TPC (March 2008)
Growth through a holistic consultancy approach
Rising revenue potential in wealth management
Potential sales revenue - MLP Finanzdienstleistungen AG per client and year
Full utilisation of joint potential
Wealth management: MLP and Feri
Increase in productivity through targeted support for the consultants
Example: Mortgages
-
- Personal consultation
-
- Customised mortgage offers
-
- Offers from several companies
-
- Innovative mortgage products
-
- Quick and simple processes
-
- Favourable terms
Requirements – MLP client Requirements – MLP consultant
-
- Support with
- Inspection/preparation of the files
- Collecting the documents
- Consultation
-
- Technology/Use
- Intuitive, current, fast
-
- Comprehensive product portfolio
MLP and Feri cover the whole market
Higher client penetration through transfer of know how
Rising number of clients
Continuing operations
Total number of clients by quarter
Continuous growth in the number of consultants
Continuing operations
Number of consultants by quarter
Increasing total income beyond the record figure achieved in 2007
Outlook
| 2 0 0 8 |
M d i t e m e r m u - |
|
|---|---|---|
| I l d i n c o m e o -a g e p e n s o n s - |
||
| I l h t t n c o m e e a m a n a g e m e n w - |
||
| I h l h i t n c o m e e a c a r e n s u r a n c e - |
2008:
- •Rapid adjustment to the new regulatory environment
- •Gaining additional market share in old-age pension provision
- Despite changed framework conditions, increase total income beyond the record figure achieved in 2007
- Slight and one-off fall in the operating margin due to adjustment to the German Insurance Contract Law
EBIT margin has increased continuously since 2005
Continuing operations
EBIT margin
* Pro forma
- Following a dynamic final quarter, MLP concluded 2007 with a significant jump in profits
- The market is in a state of profound change due to the German Insurance Contract Law reform
- Changes mean that companies have to make far-reaching adjustments to their structures, processes and technology
- •MLP is optimally prepared to gain market share as a first mover
- Despite changes, MLP expects total income for 2008 to exceed the previous year's level
Shaping change – Creating opportunities
Appendix
Investor Presentation
April 2008
Total income growth trend
Continuing operations
Total income
[in € million]
* Pro forma
Q4: Income from brokerage business increased significantly
Continuing operations
Total income
FY 2007: Income from old-age pension provision almost at previous year´s level
Continuing operations
Income from brokerage business, FY 2007 (FY 2006): € 476.3m (€ 474.9m)
Significant increase in sales contribution from wealth management
Continuing operations
EBIT margin increased by 1 percentage point
Continuing operations
Income statement
| [ i € i l l i ] n m o n |
Q 4 2 0 0 6 |
Q 4 2 0 0 7 |
F Y 2 0 0 6 |
F Y 2 0 0 7 |
|---|---|---|---|---|
| T l i t o a n c o m e |
2 1 3 0 |
2 2 6 4 |
8 8 5 5 |
6 3 1 7 |
| E B I T |
4 9 4 |
4 9 5 |
9 1 5 |
1 1 0 3 |
| F i t n a n c e c o s |
0 1 - |
2 9 - |
0 5 |
2 2 - |
| E B T |
4 9 3 |
2 0 5 |
1 0 0 1 |
1 0 8 2 |
| T a x e s |
8 8 - |
1 7 0 - |
2 3 6 - |
3 2 1 - |
| N f i t t e p r o |
4 0 6 |
3 5 0 |
7 6 5 |
7 6 0 |
| D i i d t s c o n n u e i t o p e r a o n s |
0 1 + |
1 5 - |
4 7 - |
1 3 9 - |
| S E P i € n ( i ) d l d * t e u |
0 3 9 |
0 3 5 |
0 7 3 |
0 7 5 |
- yEBIT + 16%
- yTax rate 30%
- yEPS + 3%
- yEBIT margin 17% (16%)
* From continuing operations
High momentum in Q4
Continuing operations
EBIT per quarter
Strong balance sheet
MLP Group – preliminary results
Extensive profit distribution
Dividends and share buy- backs
Dividend payment
- Share buy-backs: € 166.5 million
- Distribution of 77% of the net profit from 2006
Q4: High momentum in old-age pension provision
New business
Premium sum – old-age pension provision | Assets under Management
MLP Wealth Management – Concepts and Products
Overview
| S d t t e n u |
S f t t a r o c a r e e r |
C / a r e e r b l i h d t e s a s e |
R i t t e r e m e n |
|
|---|---|---|---|---|
| 2 5 3 0 A |
3 5 4 0 / A B B |
4 5 5 0 / B E |
6 0 6 5 … |
|
| L i i d i t q u y t m a n a g e m e n |
E D i b d t- e p o s a s e y C f A t t o m o r c c o u n C C d i d t r e a r y |
C f A t t o m o r c c o u n y i h t w d i l i i t t c r e m G l d C d y o a r |
P i A t r e m m c c o n y u u P l i C d t a n u m a r y |
P i A t r e m m c c o n y u u P l i C d t a n u m a r y |
| O i h t t y v e r n g m o n e y a c c o u n M k d f i d i f d t o n e m a r e a n e n c o m e n s y y x u f N k d t e a r m o n e m a r e n s y y u "Z i P l " y n s u s |
O i h t y v e r n g m o n e y M k t o n e m a r e a n y y N k e a r m o n e y m a r y S i l i t y p e c a n v e s m e n "Z i P l " n s u s y |
t a c c o u n f f d i d i d e n c o m e n s x u f d t e u n s t s |
||
| W l h t e a f i t o r m a o n ( S in la ) av g s p ns |
f l i t t o p p o r o o y f l h i f l i t a g s p p o r o o y i f l i t t t y a n p o r o o |
i l f t c a p a o r m a y f l i t t o p p o r o o y f i l h a g s p p o r y i f l i t t t y a n p o r o o |
i b f i f d t t o n e n e u n s f i l t o o |
f l i t t y o p p o r o o f i f i l h l t a g s p p o r o o y i f l i t t t y a n p o r o o |
| W l h t e a i i i t t o p m s a o n ( Lu m p su m inv ) t t e s m e n s |
b l f l i t t t a s o u e r e u r n p o r o y H l d i & P i E t y o n g s r v a e q u "M d l l h t o u a r w e a m a n y I d i i d l l h t n v u a w e a m a y |
o i y p r e m u m i t y f l i t p o r o o " t a g e m e n f i l i t t t a n p o r o y t n a g e m e n b l t t e s s e e c y |
||
| Pa 3 2 g e |
High-yield "Parking of liquidity"
Short-term "ZinsPlus"
| C f i i t o n g r a o n u |
||
|---|---|---|
| C h i i t t a r a c e r s c s i t t n v e s m e n j i b t o e c v e |
/ H i h- i l d "p k i f l i i d i " t y g y e a r n g o q u y O b j i i b k h t t t t t t t y e c v e : p. a n e r e s a o v e m o n e y m a r e r a e o g e e r i h l i f l i h i i h i d t t t w e x c u s o n o o s s e s w n a s x m o n p e r o M l i / l i t t t t u a s s e m u m a n a g e r c o n c e p y |
R is ky ts as se ( ) it ies e.g . e q u 2 % Y ie l d P ic k Up ( nt ly cu rre ) Pr ty op er 4 8 % |
| V h i l e c e |
F d f f d n o n s y u u |
|
| i I l t t m p e m e n a o n |
f f P l i i i 5 0 % k t t t o r o o c o n s s n g o a p p r o x. m o n e y m a r e y i d h i h d 5 0 % t t t t t t t n v e s m e n s a n o e r n v e s m e n s a p r o u c e d d i i l i l d l d i h l i k ( l t t t a o n a y e c o u p e w o w r s e x p o s u r e c u r r e n y : f d ) t p r o p e r y u n s |
|
| A l l i b l l d i k ( t t t t s m a p r o p o r o n c a n e a o c a e o r s y a s s e s e g y i i ) i i t t t t t e q u e s o r p u n o a s w a p c o n s r u c o n |
||
| M i i n m m u |
S i l E U R 0 5 y a v n g s p a n : |
|
| i t t n e s m e n v |
L i E U R 2 5 0 0 t t y u m p s u m n v e s m e n : , |
Exemplary fund structure
Comfort solution in three variations
MLP flagship portfolio
| C f i i t o n g r a o n u |
||
|---|---|---|
| C h i i t t a r a c e r s c s / I t t n v e s m e n b j i t o e c v e |
"C f l i " f M L P l i t t t o m o r s o o n o r c e n s y u F f d i t- t o c s o n o p e r o r m a n c e c o m p a r e o g e n y u u v b h k e n c m a r / M l i l i t t t t a s s e m m a n a g e r c o n c e p y u u |
|
| V h i l e c e |
f l i d l h i h f d i 3 5 t t t t p o r o o m o e s, e a c w u n n v e s m e n s y |
|
| i I l t t m p e m e n a o n |
f ( B i M L P i d l i R i b d l d t t t t t a s s a n n s s a n g s- a s e p r e- s e e c e y : u , f ) f d i 9 k l h d t t t n s n m a r e s e g m e n s p s o e r n s u u u A d d i i f f h i h / i / l t t t t t t t t t o n o u r e r a r a c v e e m e s c o u n r e s s y e s e c. y h f l i i t t t o e p o r o o m x |
|
| M i i n m m u i t t n v e s m e n |
S i l E U R 7 5 a n g s p a n y v : L i E U R 2 5 0 0 t t m p s m n e s m e n y u u v : , |
Exemplary portfolio structure "balanced"
Exemplary portfolio structure "dynamic"
High-class wealth management for a broad client base
Modular wealth management
| C f i i t o n g u r a o n |
||
|---|---|---|
| C h i i / t t a r a c e r s c s i t t n v e s m e n |
W l h i h l i i i d t t t t t e a m a n a g e m e n w o w m n m u m n v e s m e n a n y i i i h t t t n n o v a v e n v e s m e n a p p r o a c |
|
| b j i t o e c e v |
C f i d H N W I d i l b l t t t t t y o n c e p s s o a r r e s r c e o m a e a v a a e o M L P l i t c e n s |
|
| / M l i l i t t t t y u a s s e m u m a n a g e r c o n c e p |
||
| M d l i d h d l i t t o a r e n s r e s r a n s p a r e n c a n e a s a n n g y u y u y y |
||
| U f h d d i i b i l i i h h t t t t t t s e o e e e n e n e s m e n p o s s e s r o g y x v u C S U I T I I I |
||
| V h i l e c e |
f d 2 t t s e p a r a e a s s e u n s y : |
|
| "S f d l " i h h i f i b / t t t t t a e y m o u e w e a m o g e n e r a n g a a s e r e u r n y A b l R t t t s o u e- e u r n c o n c e p |
||
| "O i d l " d i i l i d t t t t t t y p p o r u n y m o u e s n c y r e u r n- o r e n e |
||
| I l i t t m p e m e n a o n |
P f l i l l i f b h "m d l " t t t y o r o o s g e n e r a y c o n s s o o o u e s |
|
| B h h i l f l l b l f b i t t t y o v e c e s a r e r e e y s c a e a e, o r a e e r o v e r v e w h i i i h 1 2 l i t t t t t e r e s a m a r a e r n a e s x w v |
||
| f "M i i " l h i k h h l d d i t t t t t t r a o r e e c s e r s r e s o a n n e s m e n y x v f h i h l i t t o r o n o e c e n z |
||
| M i i n m m u i t t n e s m e Pa n 3 5 v g e |
E U R 1 0 0 0 0 y , |
Possible product range mix matrix
| Op / Op / Op / 4 5 % 7 0 % 9 0 % 1 0 0 % p. p. p. 5 5 % Sa fe 3 0 % Sa fe 1 0 % Sa fe Op ity tun p or 2 0 % Op / 4 0 % Op / 6 0 % Op / 8 0 % Op / p. p. p. p. Sa fe Sa fe Sa fe Sa fe 8 0 % 6 0 % 4 0 % 2 0 % 1 0 0 % 1 5 % Op / 3 % Op / 5 p. p. 0 % Op / 5 p. Sa fe Sa fe Sa fe 8 5 % 6 5 % Sa fe 5 0 % |
|||
|---|---|---|---|
| s | |||
| i R |
|||
| d l o h s e r h t k |
Time horizon
Broad distribution over all asset classes
Modular wealth management – exemplary structure (80% safety module)
Highest level of individuality for MLP clients
Individual wealth management
| C f i i t o n g u r a o n |
||
|---|---|---|
| C h i i / t t a r a c e r s c s i t t n e s m e n v b j i t o e c e v |
I d i i d l l h f M L P l i t t t y n v u a w e a m a n a g e m e n o r c e n s M l i / l i t t t t y u a s s e m u m a n a g e r c o n c e p D i i f h i d i i d l i k h h l d t t t t y e e r m n a o n o e n v u a r s r e s o K i k b k i l l b d i d l i t t t t y c a c s w e c r e e o c e n a c c o u n s |
|
| i V h l e c e |
f f A i d b d d t t t t s s e m a n a g e m e n r o m n e s m e n n s, o n s a n y v u i f i t t c e r c a e s |
|
| I l i t t m p e m e n a o n |
P f l i i d i d b h i t t t t t o r o o s r c r e s e e r m n e e m a m m y u u y x u f h h l d i h i b l l i l t t t t t r e s o r e s p e c o a p o s s e o s s o c a p a w f f f P l i k d i h d t t t t t t t o r o o e a a a r s e r o m e a r g e r a e o r e r n a n y y u h l i 's i k h h l d t t t e c e n r s r e s o |
|
| M i i n m u m i t t n v e s m e n |
E U R 5 0 0 0 0 0 y , |
Comprehensive quality standards for the selection of participation models
Procedure for fund selection by Feri
Precisely fitting range with unique selling points
MLP Wealth Management within a market comparison
Contact
MLP Investor RelationsAlte Heerstraße 4069168 WieslochGermany
Contact:Investor Relations:
Helmut Achatz, Head of Investor Relations Ines Kittlitz, Manger Investor Relations
Tel.: +49 (0) 6222 308 1135 Fax: +49 (0) 6222 308 1131 E-mail: [email protected]
MLP Investor Relations information on the internet:
Financial reports, presentations and calendar etc. at http://www.mlp.de