MLP SE — Investor Presentation 2015

Feb 27, 2015

Frankfurt, 26th February 2015

• 1. Business Development 2014 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2014 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers
• 1. Business Development 2014 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2014 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

Overview 2014

• MLP remarkably increased its key figures in 2014
• At € 186.4 million, total revenue in Q4 is 15% above the previous year and 58% above Q3 – significant upturn in old-age provision
• FY 2014: Total revenue 2014 up by 6% EBIT rose by 27% to € 39.0 million
• Executive Board proposes a dividend increase to 17 cents per share pay-out ratio of 63%
• MLP continues its process of modernisation

Continuingly difficult environment – MLP gains market share

New business in the market remains well below normal levels

Market development

Old-age provision: Premium sum of new business in € billion

Health insurance: Holders of comprehensive insurance in millions

MLP development

Old-age provision: Premium sum of MLP´s new business in € billion

Health insurance: Holders of comprehensive insurance in thousands

Sources: German Insurance Association (GDV e.V.), Association of Private Health Insurers, *Assekurata estimate

FERI considerably strengthened

	2007	2014	Changes in 2014
Total revenue (segment)	€ 50.7 million	€ 113.9 million
Assets under management*	€ 12.7 billion	€ 27.5 billion	Gain in mandates and increase in allocated funds by clients; 1st Place in the all-time best list of "Fuchsbriefe"
Setup	Private client and institutional business side by side	Investment management and consulting for private and institutional clients from one dedicated unit each	-
Regulatory approvals	Financial services institution	Financial services institution EU rating agency AIFM licence in Luxembourg KVG application submitted	AIFM licence received, KVG almost ready to sign – strengthening of alternative assets
Acquisitions & investments	-	Holding in Coresis UST Immobilien joint venture Acquisition of Michel & Cortesi	Acquisition of Michel & Cortesi to strengthen activities in Switzerland

FERI established as an important, additional pillar in the Group

Importance of wealth management significantly strengthened – revenue mix further diversified

FY 2005 FY 2014

Revenue from commissions and fees: € 467.9 million Revenue from commissions and fees: € 486.9 million

Digitalisation strategy driven forward

• MLP financify established as heading when addressing young adults online – new website to launch in April
• Expansion of the internet into an important interface for arousing interest and acquiring new clients
• Introduction of online sale for basic products planned

• Pilot for electronic signature and video consulting launched – further roll-out stages planned

• 1. Business Development 2014 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2014 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

FY 2014: Total revenue rises to € 531.1 million

Total revenue in Q4

in € million

Total revenue in FY

in € million

Revenue Other revenue Revenue: commissions and fees Interest income 200 400 600 472,2 509.7 2014 531.1 480.5 2013* 499.0 486.9 21.4 22.9 457.7 22.8 0 50 0 100 150 200 Q4 2014 177.8 172.0 186.4 Q4 2013* 155.3 149.8 162.3 5.8 8.6 5.5 7.0 18.5 * Previous year's values adjusted

Upturn in old-age provision – new record in the wealth management

Revenue

in € million

	Q4 2014	Q4 2013*	 in %	2014	2013*	 in %
Old-age provision	106.6	88.3	20.7	239.7	219.9	9.0
Wealth management	41.3	37.7	9.5	147.0 117,9	138.1	6.4
Health insurance	11.6	11.5	0.9	43.5	47.8	-9.0
Non-life insurance	5.0	5.4	-7.4	34.6	32.5	6.5
Loans and mortgages**	4.5	4.7	-4.3	13.6	14.5	-6.2
Other commissions and fees	3.0	2.0	50.0	8.4	4.9	71.4
Interest income	5.8	5.5	5.5	22.9	22.8	0.4

* Previous year's values adjusted

** excluding MLP Hyp

27,900 new clients

New clients (gross)

Client consultants

FY 2014: EBIT rose by 27 percent to € 39.0 million

Income statement

in € million

	Q4 2014	Q4 2013*	2014	2013*
Total revenue	186.4	162.3	531.1	499.0
EBIT	29.6	20.5	39.0	30.7
Finance cost	-1.2	0.2	-1.3	0.2
EBT	28.4	20.7	37.6	30.8
Taxes	-6.6	-4.7	-8.7	-6.9
Group net profit	21.8	16.0	29.0	23.9
EPS in € (diluted/undiluted)	0.20	0.15	0.27	0.22

Due to the announced investments administration costs rise slightly to € 256.8 million (2013: € 250.6 million)

*Previous year's values adjusted

Return on equity 7.8 percent

in € million

	31/12/2014	31/12/2013*
Intangible assets	156.2	155.3
Financial investments	145.3	146.1
Cash and cash equivalents	49.1	46.4
Other receivables and other assets	117.7	104,7
Shareholders' equity	376.8	370,5
Equity ratio	23.2%	24.2%
Other liabilities	117.8	108,7
Total	1,624.7	1,533.6

• Equity ratio: 23.2% (24.2%)
• Return on equity: 7.8% (6.4%)
• Core capital ratio: 13.6% (16.7%)

* Previous year's values adjusted

Executive Board proposes dividend of 17 cents – pay-out ratio: 63 percent

Dividend per share

Cent

• Pay-out ratio: 63 percent
• At the same time capital is required for:
• Acquisitions
• Investments
• Capital management (Basel III)

• Pay-out ratio in the forthcoming financial years: 50 % to 70% of Group net profit

• 1. Business Development 2014 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2014 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

Regulation is increasingly focusing on remuneration

EU law	EU Insurance Mediation Directive (IMD) EU Markets in Financial Instruments Directive (MiFID)		Draft amending the EU Markets in Financial Instruments Directive (MiFID II) Draft amending the EU Insurance Mediation Directive (IMD II)				MiFID II	Implementation of Implementation of IMD II
	2004 –	2009	2010	2011		2012	2013		2014	2015 –	2017
German law	•		Disclosure of the contract and marketing expenses factored into the premium Introduction of the Markets in Financial Instruments Directive (MiFID)	Introduction of the German Insurance Act (VVG)		Products •	Act Reforming the Laws on Intermediaries for Financial Investments and on Investment Cap for acquisition commission in the private health insurance sector (max. 9.9 monthly premiums) Investor Protection and Functionality		Life Insurance Reform Act • Maximum zillmerisation rate • Cost transparency	IMDII and MiFID II	National regulations (LVRG)
	• •		Implementation of the EU Insurance Mediation Directive (IMD) Information disclosure requirements Documentation requirements		• •	Improvement Act (AnsFuG) Product information sheets	Disclosure of costs in wealth management		Fee-Based Investment Advisory Service Act (HAnlBG) • Protected job title for fee-based consultants for wealth		management

Significant increase in consolidation within the market due to Life Insurance Reform Act (LVRG)

Number of insurance intermediaries in Germany

Source: DIHK, entries in the Insurance Intermediary Register

Effects of the Life Insurance Reform Act (LVRG)

• Quality of consultancy and portfolio will become even more important
• Sale organisations with a high cancellation rate will lose trail commissions
• Major challenges for pyramid sales organisations

Double consolidation realigns forces in the market

gGrowing influence of successful brokers over insurers

Continuation of the growth initiatives

Strategic focus	Priorities
1. Online strategy	• Expansion of the internet into an important interface for acquiring new clients and stimulating interest among potential clients • MLP financify established as heading when addressing young adults • Online sale of basic products planned • Video conferences and e-signatures as service for existing customers planned
2. Recruiting	• New consultant start-up programmes introduced in 2013 as the basis • Easement for new consultants to start into self-employment • Revision of education for new consultants • Expansion of the internship programme • Continuation of the strategy to open new offices in the university segment → The quality of new consultants remains the top priority	Making MLP more independent of short-term market influences
3. Broadening the revenue basis	• Further strengthening of the real estate business introduced in 2014; three new product partners • Expansion of the non-life insurance segment for commercial customers; acquisition possible • Further strengthening of the Real and Alternative Assets segment at FERI; further acquisitions possible at FERI • Further expansion of wealth management activities

Outlook: MLP anticipates EBIT above the previous year's level

Administrative costs*

** Adjusted to include one-off expenses

Sales revenue

in each case compared to the previous year

	2015
Revenue from old-age provision	Stable development
Revenue from health insurance	Slight increase
Revenue from wealth management	Slight increase
Other commission and fees (real estate)	Significant increase

gDespite still difficult markets and comprehensive investments, MLP anticipates a slight increase in EBIT for 2015

• Despite operating in difficult markets, MLP ended 2014 on a high note and was able to increase its market shares.
• MLP will continue its process of modernisation. The main objectives here include recruiting new consultants, implementation of the online strategy and further diversification of the revenue basis.

• The 2015 outlook underlines the commitment to delivering profitable growth – despite difficult market environment and comprehensive future investments.

• 1. Business Development 2014 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2014 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

Contact

Your contact persons

Jan Berg Head of Corporate Communications

Andreas Herzog

Teamhead Investor Relations and Financial Communications

MLP AG Corporate Communications Alte Heerstr. 40 69168 Wiesloch Germany Tel.: +49 (0) 6222 • 308 • 8320 Fax: +49 (0) 6222 • 308 • 1131

investorrelations@mlp.de

www.mlp-ag.de