MLP SE — Investor Presentation 2015

Feb 25, 2016

Financial Results 2015

Frankfurt, February 25, 2016

• 1. Business Development 2015 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2015 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

Growth in virtually all fields of consulting

Key facts on business development

• In 2015 MLP profited from the broadening of the revenue basis more than ever before.
• Growth in virtually all consulting fields old-age provision remains very difficult due to market conditions.
• MLP generates solid profits despite challenging framework conditions.
• MLP is further tightening its cost management in order to produce sustainable growth again from 2017.

Difficult market environment in old-age provision persists

Percentage of people who make no monthly savings for old-age provision:

Source: Deutscher Sparkassen- und Giroverband financial group, Wealth Barometer 2011–2015

Strategic portfolio significantly broadened

Occupational pension provision	Clear business model	Wealth management	Real estate	Expansion of non-life insurance
2004 Foundation of Occupational Pension Provision division 2008 Acquisition of TPC	2005 Sale of own insurance subsidiaries	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

Financial Results 2015

• 1. Business Development 2015 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2015 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

FY 2015: Total revenue rises to € 557.2 million

Total revenue FY

€ million

Growth in virtually all consulting areas

Revenue

€ million

	∆	2014/2015 in %	2015	2014	Q4 2015	Q4 2014	∆ in %
Old-age provision	-10.0		215.7	239.7	87.8	106.6	-17.6
Wealth management		12.9	166.0 117,9	147.0	44.7	41.3	8.2
Health insurance		5.5	45.9	43.5	9.2	13.9	-33.8
Non-life insurance		58.7	54.9	34.6	21.3	2.7	>100.0
Loans and mortgages*		19.1	16.2	13.6	5.1	4.5	13.3
Other commission and fees		85.7	15.6	8.4	5.1	3.0	70.0
Revenue from the interest rate business	-6.6		21.4	22.9	5.3	5.8	-8.6

*Excluding MLP Hyp

Assets under management continue to grow

Wealth management

Assets under management, MLP Group

Old-age provision Premium sum of MLP's new business

as at 31 December

Number of consultants rises slightly

Client consultants

New clients, gross

Client counting method will reflect the Group structure in a better way

Presentation of client numbers as of Q1 2016

Number of individual clients		Private clients (families)	• Combined individuals: Partner relationship or parents-child unit and allocated to the same client consultant • System applies for MLP and the relevant subsidiaries FERI and ZSH
		Corporate and institutional clients	• Corporate clients in occupational pension provision • Institutional clients at FERI • Sales partners at DOMCURA • Freelance professionals such a doctors as employers

FY 2015: Pro forma EBIT amounts to € 32.5 million

Income statement

€ million	Q4 2015	Q4 2014	2015
Total revenue	187.7	186.4	557.2	531.1
Pro forma EBIT*	24.2	29.6	32.5	39.0
EBIT	23.3	29,6	30.7	39.0
Finance cost	-0.4	-1.2	-2.8	-1.3
EBT	22.9	28.4	28.0	37.6
Taxes	-6.8	-6.6	-8.2	-8.7
Net profit	16.1	21.8	19.8	29.0
EPS in euros (diluted/basic)	0.15	0.20	0.18	0.27

²⁰¹⁴ Net profit 2015 based on an assumed acquisition of DOMCURA with effect from Jan 1, 2015: € 23.3 million

Already reported one-off effects from Q3/2015:

• One-off charge to the financial result (€ -2.0 million)
• One-off extra tax expense (€ -1.1 million)

*adjusted for the acquisition of DOMCURA

Own funds ratio of 14.3 %

€ million

	Dec 31, 2015	Dec 31, 2014
Intangible assets	174.5	156.2
Financial assets	147.9	145.3
Cash and cash equivalents	77.5	49.1
Other receivables and assets	112.5	117.7
Shareholders' equity	385.8	376.8
Equity ratio	22.0 %	23.2 %
Other liabilities	140.2	117.8
Total	1,752.7	1,624.7

Core capital ratio: 14.3 % (15.6 %)

• Equity ratio: 22.0 % (23.2 %)
• Return on equity: 5.1 % (7.7 %)

Executive Board proposes dividend of 12 cents – dividend yield: 3,3 %

acquisition of DOMCURA as of 1 January 2015

Financial Results 2015

• 1. Business Development 2015 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2015 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

Strategic agenda 2016

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

Strategic agenda 2016

DOMCURA acquisition: 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

Strategic agenda 2016

Even more balanced revenue basis in the medium term

Development of revenue distribution

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

Seite 24

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

Strategic agenda 2016

Cost management tightened further

Administrative expenses* 2008 – 2017 (planned)

* Defined as personnel expenses, depreciation and amortisation as well as other operating expenses

**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	++	+

very positive: ++, positive: +, neutral: 0, negative: -, very negative: --

(in each case compared to the previous year)

For 2016 MLP expects an operating EBIT (before one-off effects) slightly above 2015 Compared to 2015 MLP anticipates a significant increase in EBIT from 2017 onwards

• 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 will further accelerate 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.
• On this basis the level of earnings is to significantly rise again from 2017.

Financial Results 2015

• 1. Business Development 2015 Dr. Uwe Schroeder-Wildberg, CEO
• 1. Financials 2015 Reinhard Loose, CFO
• 1. Strategy, Outlook and Summary Dr. Uwe Schroeder-Wildberg, CEO
• 1. Questions & Answers

Financial Results 2015

Frankfurt, February 25, 2016

Contact

Jan Berg Head of Corporate University / Corporate Communications

Frank Heinemann Head of External Communications

Andreas Herzog

Head of Investor Relations and Financial Communications

MLP AG Alte Heerstr. 40 69168 Wiesloch Germany

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

www.mlp-ag.de