MLP SE

Investor Presentation • Sep 20, 2016

The MLP Group – The partner for all financial matters

Munich, September 2016

Berenberg & Goldman Sachs German Corporate Conference

The MLP Group

• 1. MLP at a glance
• 1. Key Financials 2015
• 1. Strategy & Outlook

The MLP Group at a glance

The views and expectations of our clients always represent the starting point in each of these fields

• We examine the offers of all relevant product providers in the market
• We then present our clients with suitable options so that they can make the right financial decisions

The process based on scientifically substantiated market and product analyses.

MLP Group – An Overview

Clients		• solicitors, engineers and economists) • Around 18,600* corporate and institutional clients	Around 513,000 private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, as of June 30, 2016
	Old-age provision	Brokered premium sum for new business totalled €	Share of revenue '15
s a e		Occupational pension provision accounted for around 12% of this figure.						42%
ar s s e n	Wealth Management	€ 29.2 billion in assets under management as at June 30, 2016 in business with mass affluent clients, HNWI and institutional investors.	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.	9%
	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
	MLP Share	Shares outstanding: 109,334,686		Free Float: 49.81% (Definition on the German stock exchange)		Average daily trading volume: 89,587 (Xetra, 12-month average as at end of August 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%, Schroders PLC: 2.99%]	23.22% 9.36% 5.49% 6.18% 5.94% 49.81%		Freefloat			Barmenia Allianz SE HDI Pensionskasse	Angelika Lautenschläger	Dr. h. c. Manfred Lautenschläger
Research coverage	Equinet/ESN Bankhaus Lampe Main First Independent Research HSBC Global Research	Accumulate Hold Underperform Sell Hold		PT 4.30 PT 3.50 PT 3.60 PT 3.20 PT 3.20

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

The MLP Group

• 1. MLP at a glance
• 1. Key Financials 2015
• 1. Strategy & Outlook

Strategic portfolio significantly broadened

Page 8

FY 2015: Total revenue rises to € 557.2 million

Total revenue FY

€ million

H1 2016: Total revenue increases by 16 percent to € 283.6 million

Total revenue H1

[in € million]

Successful diversification beyond the old-age provision

Commission income in H1 (all consulting areas, excl. old-age provision)

H1 2016: Strong growth in non-life insurance

Revenue

[in € million]

	∆ Q2 2015 2014/2015 in %	Q2 2016	∆ in %	H1 2015	H1 2016	∆ in %	H1/2015:
Old-age provision	41.1	45.3	10	83.1	81.6	-2	• Revenue in old-age provision positively influenced by a one-off effect in Q1/2015
Wealth management	41.9	40.4	-4	82.6	79.3	-4
Health insurance	10.4	11.4	10	22.2	23.3	5	H1/2016:
Non-life insurance	5.1	18.0	>100	25.2	68.7	>100	• Revenue contribution
Loans and mortgages*	3.8	3.2	-16	6.9	6.8	-1	DOMCURA (non-life) of around € 43.6 million
Other commissions and fees	4.0	3.3	-18	6.4	5.7	-11
Interest income	5.3	5.1	-4	10.8	10.3	-5

* excluding MLP Hyp

H1 2016: Operating EBIT at € 9.3 million above previous year

Income statement

[in € million]	Q2 2015	Q2 2016	H1 2015	H1 2016
Total revenue	115.0	131.3	244.9	283.6
Operating EBIT*	1.1	0.4	8.1	9.3
EBIT	1.1	-1.0	8.1	7.7
Finance cost	-0.1	-0.3	-0.3	-0.4
EBT	0.9	-1.2	7.8	7.3
Taxes	0.4	0.7	-1.3	-1.7
Group net profit	1.3	-0.6	6.6	5.6
EPS in € (diluted/undiluted)	0.01	-0.01	0.06	0.05

Q2/2016

• Negative EBIT contribution by DOMCURA: € -0.8 million (not included in previous year)
• Reason: Seasonality of business model

Extraordinary charge due to one-off expenses for efficiency measures

• H1 2016: 1.6 Mio. €
• Q2 2016: 1.4 Mio. €

H1/2015

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

* before one-off exceptional costs

H1 2016: Strong balance sheet

Assets	31/12/2015	30/06/2016
Intangible Assets	174.5	171.8
Financial Assets	147.9	146.2
Receivables from clients in the banking business	542.7	577.0
Receivables from banks in the banking business	600.3	574.4
Other receivables and assets	112.5	83.3
Cash and cash equivalents	77.5	125.8

Equity ratio: 21.0 %

Core capital ratio: 13.25 %

Liabilities and shareholders equity

Total	1,752.7	1,774.9
Other Liabilities	140.2	102.1
Liabilities due to banks in the banking business	23.1	30.3
Liabilities due to clients in the banking business	1,102.6	1,178.4
Provisions	86.5	75.8
Shareholders equity	385.8	372.1

The MLP Group

• 1. MLP at a glance
• 1. Key Financials 2015
• 1. Strategy & Outlook

Strategic agenda 2016

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

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

Source: DIHK, entries in the Insurance Intermediary Register

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

Digital footprint significantly expanded

7 million visits p.a Social Media Facebook YouTube Twitter

mlp.de

First online policy sales

MLP Websites relaunched

mlp-financify.de

profiles

180 sites of branches 2,000 client consultant

MLP
	TWEETS 608	FOLGE ICH 131	FOLLOWER 1.713	GEFÄLLT MIR 184
			.	.

Further enhancing our digital approach

More online policy sales

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

travel health insurance

Client portal One login Dashboard Personal Finance Management (PFM)

bicycle/e-bike and

more to follow

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

Cost management further tightened

Administrative expenses* 2008 – 2017 (planned)

**Allowances for losses are a seperate item in the income statement as of this year ***Assumptions: completely realised in administrative expenses

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

• In view of the external conditions the year 2015 is additional proof that the further development of the business model is increasingly taking effect.
• MLP is accelerating the transformation in 2016. The Group's cost management will be tightened even further to this end. Alongside the successful growth initiatives, MLP is checking opportunities for inorganic growth.
• Efficiency measures and growth initiatives are running according to schedule
• From FY 2017 onwards MLP anticipates a significant increase in EBIT over 2015.

Questions & Answers

Happy to take your questions!

Contact

Andreas Herzog Head of Investor Relations and Financial Communications

Alte Heerstr. 40 69168 Wiesloch Germany

Tel.: +49 (0) 6222 • 308 • 8310 Fax: +49 (0) 6222 • 308 • 1131 investorrelations@mlp.de

www.mlp-ag.com