MLP SE — Investor Presentation 2016

Aug 11, 2016

Financial results H1/Q2 2016

Reinhard Loose, CFO

11th August 2016

Highlights H1/Q2 2016

• Key financial figures H1/Q2 2016
• Consultants and clients
• Outlook and summary
• Questions & Answers

Highlights H1/Q2 2016

• H1: Total revenue increases by 16 percent to € 283.6 million
• H1: Operating EBIT rises to € 9.3 million (H1 2015: € 8.1 million)
• Q2: Old-age provision and health insurance each increase by 10 percent against to the market trend
• Efficiency measures and growth initiatives are continuously running according to schedule

• Outlook: As announced, EBIT level should rise again significantly from 2017

• Highlights H1/Q2 2016

• Key financial figures H1/Q2 2016
• Consultants and clients
• Outlook and summary
• Questions & Answers

H1: 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)

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

Premium sum old-age provision rises to € 1,306 million

Assets under Management Premium sum: old-age provision

[in € billion] [in € million]

Q2: Total revenue increases by 14 percent to € 131.3 million

Total revenue Q2

[in € million]

Q2: Growth in old-age provision and health insurance

Commission income old-age provision Commission income health insurance

Population does not trust politics to secure statutory old-age pensions

Can the German government steadily ensure that the statutory pension does not decline in the long term?

What would you personally be willing to accept in order to stabilise the level of statutory old-age pensions?

Source: YouGov survey, on behalf of MLP, July 2016

H1: 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

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

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

• Highlights H1/Q2 2016
• Key financial figures H1/Q2 2016
• Consultants and clients
• Outlook and summary
• Questions & Answers

MLP serves 512,800 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) 510,200 511,000	31/12/2015 31/03/2016
		512,800	30/06/2016
Corporate and institutional clients	• Corporate clients in occupational pension provision • Institutional clients at FERI • Sales partners at DOMCURA • Freelancers as employers	Number of corporate and institutional clients
		18,200	31/12/2015
		18,300	31/03/2016
		18,600	30/06/2016

MLP attracts 8,900 new clients (families)

Gross number of new clients (families)

Consultants

• Highlights H1/Q2 2016
• Key financial figures H1/Q2 2016
• Consultants and clients
• Outlook and summary
• Questions & Answers

Continued growth initiatives

Strategic agenda

Outlook confirmed

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

• Significant increase in total revenue on quarterly and half-year basis
• Especially in old-age provision market environment remains difficult discussion on statutory pension contributing to further uncertainty among consumers
• Efficiency measures and growth initiatives are running according to schedule

• Forecast confirmed: From FY 2017 onwards MLP anticipates a significant increase in EBIT over 2015

• Highlights H1/Q2 2016

• Key financial figures H1/Q2 2016
• Consultants and clients
• Outlook and summary
• Questions & Answers

Contact

MLP Corporate Communications Alte Heerstr. 40 69168 Wiesloch Deutschland

Frank Heinemann, Head of External Communications Andreas Herzog, Head of Investor Relations and Financial Communications

Tel.: +49 (0) 6222 308 8310 Fax: +49 (0) 6222 308 1131

investorrelations@mlp.de www.mlp-ag.de