MLP SE

Investor Presentation • Nov 22, 2016

The MLP Group – The partner for all financial matters

German Equity Forum

The MLP Group

1. MLP at a glance

• 1. Market environment
• 1. Strategic Agenda
• 1. Financial Development
• 1. Outlook

The MLP Group at a glance

	The MLP Group
	The Partner for all financial matters Private Clients – Companies – Institutional Investors
MLP Finanzdienstleistungen AG	FERI AG	DOMCURA AG	TPC GmbH
The Partner for all financial matters	The investment expert for institutional investors and high net-worth individuals	The underwriting agency, focussing on private and commercial non-life insurance	The specialist in occupational pension provision management
• ~1,950 consultants • ~160 branch offices • ~1,270 employees	• ~200 employees • International locations: Vienna, Zurich, Luxembourg	• ~270 employees • ~5,000 partners (insurance brokers, pools, sales offices)	• ~25 employees • Client consulting together with MLP client consultants
• All fields of consulting • E.g. Old-Age, Health, Wealth Management., Non-Life	• Investment Research • Investment Management • Investment Cosulting	• € 330 mln joint premium volume • Improved market position • Easier and better processes	• Servicing bigger "medium sized" companies • Small solution &complexe balance sheet issues • Member International Benefits

Network

MLP Group – An Overview

• Around 515,000 private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, Clients solicitors, engineers and economists) • Around 18,600 corporate and institutional clients					*as of September 30, 2016
s	Old-age provision		Share of revenue '15
e ar s s e n	a Wealth € 30.0 billion in assets under management as at September 30, 2016 in business with mass Management affluent clients, HNWI and institutional investors.						42% 32%
si u b n ai	Non-life insurance	Business field expanded by acquisition of DOMCURA Group in 2015. More that € 330 million premium volume within the MLP Group.	11%
M	Health insurance		Private health insurance, supplementary private health insurance, long-term care, occupational health insurance, statutory health insurance.
Total revenue: € 557.2 mil. Pro forma EBIT*: € 32.5 mil. Equity Ratio: 22.0% Dividend per share: € 0.12 Top Financials FY 2015 EBIT: € 30.7 mil. Core Capital Ratio: 14.3% Return on Equity: 5.1% Net profit: € 19.8 mil. Consultants: 1,935 Employees (9M'15): 1,803					*adjusted for the aquisition of DOMCURA
	Shares outstanding: 109,334,686 Free Float: 49.81% (Definition on the German stock exchange) MLP Share Average daily trading volume: 89,090 (Xetra, 12-month average as at end of October 2016)

Attractive dividend policy & stable shareholder structure

Dividend policy	Pay-out ratio: 50% - 70% of net profit Profit retention required for: - Acquisitions - Capital expenditure - Capital management (Basel III)		Return on dividend:	4.0% 2010	11.8% 2011	6.4% 2012	3.1% 2013	4.6% 2014	3.3% 2015
Shareholder structure	Dr. h. c. Manfred Lautenschläger HDI Barmenia Allianz SE Angelika Lautenschläger Freefloat (Def. Deutsche Börse) [FMR LLC: 4.72%, Internationale Kapitalanlagegesellschaft	23.22% 9.36% 5.49% 6.18% 5.94% 49.81%	mbH: 3,03%, Schroders PLC: 2.99%]	Freefloat			Barmenia Allianz SE HDI Pensionskasse	Dr. h. c. Manfred Lautenschläger Angelika Lautenschläger
Research coverage	Equinet/ESN Bankhaus Lampe Independent Research HSBC Global Research	Accumulate Hold Sell Hold		PT 4.30 PT 3.50 PT 3.20 PT 3.90

The MLP Group

• 1. MLP at a glance
• 1. Market environment
• 1. Strategic Agenda
• 1. Financial Development
• 1. Outlook

Market environment – Fundamental changes taking place

Trend

Client behaviour

• Fundamental scepticism on the part of clients towards the financial industry since the outbreak of the financial crisis
• Quick and inexpensive information possibilities for clients via the internet
• Distinct desire to make their own financial decisions

Demographics

• Rising life expectancy and low birth rate lead to a significantly ageing society
• Increasing pressure on state social welfare systems
• Number of people in work constantly falling

Regulation (e.g. IMD II, MiFID II, LVRG)

• Since 2004 and especially since 2008 intensive regulation
• In addition to impacting at the product level, regulation also particularly applies to the training of consultants, documentation and transparency

Effects

• Intense competition
• Quality of consulting services and differentiation from the competition continue to gain in significance
• Contract conclusion for simple products sometimes takes place without consultation
• Great need for private and occupational old-age provision as well as private health insurance
• Recruiting: Good labour market perspectives leads to a "war of talents" for welleducated/trained individuals
• Significant rise in administrative activities burdens productivity
• Increase in fixed costs for training, IT systems and administration
• Quality becoming an increasingly important aspect

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

Shrinking Number of insurance intermediaries in Germany

Effects of the Life Insurance Reform Act (LVRG)

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

Trend is ongoing and will strengthen – MLP to play an active role in consolidation process

The MLP Group

• 1. MLP at a glance
• 1. Market environment
• 1. Strategic Agenda
• 1. Financial development
• 1. Outlook

Strategic portfolio significantly broadened

Clear business model Occupational pension provision	Wealth management	Real estate	Expansion of non-life insurance
2005 2004 Sale of own Foundation of Occupational insurance subsidiaries Pension Provision division 2008 Acquisition of TPC	2006 MLP buys shares in FERI AG 2011 MLP acquires all shares in FERI as planned	2011 Start of real estate portfolio 2014 Expansion of real estate portfolio	2015 Acquisition of DOMCURA Group • Underwriting agency • Further strategically relevant business segment tapped • Significant potential with existing business

Successful diversification beyond the old-age provision – Constitution of commission income (in € million)

Strategic agenda

Even more balanced revenue basis in the medium term

Development of revenue distribution

The MLP Group

• 1. MLP at a glance
• 1. Market environment
• 1. Strategic Agenda
• 1. Financial development
• 1. Outlook

9M: Operating EBIT at € 16.1 million significantly above previous year

Income statement

[in € million]	Q3 2015	Q3 2016	9M 2015	9M 2016
Total revenue	122.9	135.0	367.8	418.7
Operating EBIT*	-0.7	6.6	7.4	16.1
EBIT	-0.7	3.8	7.4	11.5
Finance cost	-2.0	-0.1	-2.3	-0.5
EBT	-2.8	3.7	5.0	11.0
Taxes	-0.1	0.2	-1.4	-1.5
Group net profit	-2.9	4.0	3.7	9.6
EPS in € (diluted/undiluted)	-0.03	0.04	0.03	0.09

Extraordinary charge due to one-off expenses for announced efficiency measures

• 9M 2016: € 4.6 million
• Q3 2016: € 2.8 million

9M/2015

• one-off positive effect associated with the correction of an incorrect settlement by a product partner in old-age provision in Q1 2015

*before one-off exceptional costs

9M: Assets under management reached the EUR 30 billion mark for the first time – Old age provision bottomed out

Assets under management:

• EUR 30 billion mark reached for the first time

Old-age provision:

• Product mix changed early adopter advantage
• Revenue above previous year for 2 consecutive quarters

The MLP Group

• 1. MLP at a glance
• 1. Market environment
• 1. Strategic Agenda
• 1. Financial development
• 1. Outlook

Outlook

Qualitative assessment of the development of sales revenues

	2016	2017
Revenue from old-age provision	0	0
Revenue from health insurance	+	0
Revenue from wealth management	+	+
Revenue from non-life insurance	++	+

(in each case compared to the previous year) very positive: ++, positive: +, neutral: 0, negative: -, very negative: --

• Costs will once again be significantly reduced in the financial year 2017 and subsequent years (positive EBIT effect of around EUR 15 million compared to 2015).
• As announced, this will incur one-off expenses of approximately EUR 15 million in the financial year 2016.

As of 2017, MLP anticipates a significant increase in EBIT over 2015

Questions & Answers

Happy to take your questions!

Appendix

Q3: Strong growth in wealth management

Revenue

[in € million]

	Q3 2015	Q3 2016	∆ in %	9M 2015	9M 2016	∆ in %	9M/2015:
Old-age provision	44.8	45.7	2	128.0	127.2	-1	• Revenue in old-age provision positively influenced by a one-off effect in Q1/2015
Wealth management	38.7	43.5	12	121.3	122.9	1
Health insurance	11.4	10.8	-5	33.6	34.0	1	9M/2016:
Non-life insurance	11.5	16.9	47	36.7	85.6	>100	• Revenue contribution
Loans and mortgages*	4.2	3.6	-14	11.1	10.4	-6	DOMCURA (non-life) of around € 54.3 million
Other commissions and fees	4.0	3.1	-23	10.4	8.8	-15
Interest income	5.3	5.2	-2	16.1	15.5	-4

*excluding MLP Hyp

Balance sheet

Assets	31/12/2015	30/09/2016
Intangible Assets	174.5	169.8
Financial Assets	147.9	162.8
Receivables from clients in the banking business	542.7	613.2
Receivables from banks in the banking business	600.3	550.2
Other receivables and assets	112.5	87.5
Cash and cash equivalents	77.5	129.0

Equity ratio: 20.7 %

Core capital ratio: 12.81 %

Liabilities and shareholders equity

Shareholders equity	385.8	373.9
Provisions	86.5	84.1
Liabilities due to clients in the banking business	1,102.6	1,199.1
Liabilities due to banks in the banking business	23.1	33.4
Other Liabilities	140.2	103.5
Total	1,752.7	1,808.8

MLP serves 514,600 private and 18,600 corporate clients

Client base: family clients / corporate and institutional clients

Private clients (families)	• Combined individuals: Partner relationship or parents-child unit and assigned to the same client consultant • System applies for MLP and the subsidiaries FERI and ZSH	Number of private clients (families)
		510,200	31/12/2015
		512,800	30/06/2016
		514,600	30/09/2016
		Number of corporate and institutional clients
Corporate and institutional clients	• Corporate clients in occupational pension provision • Institutional clients at FERI • Sales partners at DOMCURA • Freelancers as employers
		18,200	31/12/2015
		18,600	30/06/2016
		18,600	30/09/2016

Assets under management passed the EUR 30 billion mark for the first time

29,2 29,0 29,3 29,2 12 18 20 24 26 06/2015 12/2015 03/2016 06/2016 [in € billion] [in € million] 10.8 20.2 30.0 0 5 10 15 20 25 30 35 31/12/2006 31/12/2011 30/09/2016

Assets under management Premium sum: old-age provision

DOMCURA: Underwriting agency selects the appropriate insurer from the marketplace

Positive effects on MLP through DOMCURA

DOMCURA: targeted further development within the MLP Group

New solution for MLP clients in the non-life insurance sector: complete protection with liability insurance, accident insurance, etc.

Further development of the DOMCURA business with other market actors (e. g. brokers)

Expansion of the corporate client business through DOMCURA commercial and industrial brokers

Recruiting offensive to be continued

Further training grants and allowances for easing transition to self-employment are bearing fruit

Further measures:

• Introduction of a master's course in order to increase attractiveness for bachelor's graduates
• Intensification of recruiting activities via online media
• Continuation of internship programme
• Continuation of the strategy of opening new offices in the university segment

Master of Financial Planning

Steinbeis School of Management and Innovation (SMI)

• Widespread recognition of MLP training
• Very high level of flexibility for participants

Digital footprint significantly expanded

Further enhancing our digital approach

More online policy sales

MLP Financepilot further developed Scan-to-bank (easy payment order) Paydirekt (B2C) SecureGo WhatsCash (C2C)

Client portal One login Dashboard Personal Finance Management (PFM)

New kinds of support through expansion of Customer Service Centre (CSC)