MLP SE — Investor Presentation 2017

Sep 18, 2017

The MLP Group – The partner for all financial matters

Munich, September 2017

Berenberg & Goldman Sachs German Corporate Conference

The MLP Group

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

The MLP Group at a glance

The MLP Group The Partner for all financial matters Private Clients – Corporate Clients – Institutional Investors
MLP Finanzdienstleistungen AG	FERI AG	DOMCURA AG
The Partner for all financial matters	The investment expert for institutional investors and high net-worth individuals	The underwriting agency, focusing on private and commercial non-life insurance	The specialist in occupational pension provision management
• All fields of consulting • E.g. Old-Age, Health, Wealth Management., Non-Life	• Investment Research • Investment Management • Investment Consulting	• € 350 mln joint premium volume • Improved market position • Easier and better processes	• Biggest German broker • Small solutions & complexe balance sheet issues • Member International Benefits Network
• ~1,900 consultants • ~150 branch offices • ~1,200 employees	• ~220 employees • International locations: Vienna, Zurich, Luxembourg	• ~250 employees • ~5,000 partners (insurance brokers, pools, sales offices)	• Client consulting together with MLP client consultants

MLP Group – An Overview

• Around 522,900 private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, solicitors, engineers and economists) Clients • Around 19,400 corporate and institutional clients						*as of July 30, 2017
	Brokered premium sum for new business totalled € 3.7 billion in 2016. Old-age provision Occupational pension provision accounted for around 13% of this figure.							Share of revenue '16
s a e								39%
ar s s e n	Wealth Management	€ 32.0 billion in assets under management as at July 30, 2017 in business with mass affluent clients, HNWI and institutional investors.						29%
si u b n ai	Non-life insurance	Business field expanded by acquisition of DOMCURA Group in 2015. More that € 350 million premium volume within the MLP Group.	19%
M	Health insurance	Private health insurance, supplementary private health insurance, long-term care, occupational health insurance, statutory health insurance.						8%
Top Financials FY 2016		Total revenue: € Operating EBIT*: € EBIT: € Net profit: €	610.4 mil. 35.1 mil. 19.7 mil. 14.7 mil.	Equity Ratio: Core Capital Ratio: 14.2% Consultants:	19.7% 1,950	Dividend per share: Return on Equity: Employees:	€ 0.08 3.8% 1,768	*before one-off expenses
	MLP Share	Shares outstanding: 109,334,686 Free Float: 49.81% (Definition on the German stock exchange)				Average daily trading volume: 135,019 (Xetra, 12-month average as at end of August 2017)

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: expenses	*influenced by one-off	4.0% 2010	11.8% 2011	6.4% 2012	3.1% 2013	4.6% 2014	3.3% 2015	1.9%* 2016
Shareholder structure	Dr. h. c. Manfred Lautenschläger HDI Barmenia Allianz SE Angelika Lautenschläger Freefloat (Def. Deutsche Börse) [FMR LLC: 2,95%, Internationale Kapitalanlagegesellschaft	23.22% 9.36% 5.49% 6.18% 5.94% 49.81%		mbH: 5,03%, Schroders PLC: 2.99%]	Freefloat			HDI Pensionskasse	Dr. h. c. Manfred Lautenschläger Barmenia Allianz SE	Angelika Lautenschläger
Research coverage	Hauck & Aufhäuser Equinet/ESN Independent Research Bankhaus Lampe	Buy Buy Hold Hold	PT 8.00 PT 7.50 PT 6.30 PT 5.00	Ø daily trading volume	190.000 140.000 90.000 40.000	J F M 16 16 16	A M J 16 16 16 16	J A S O 16 16 16	N D J 16 16 17	F M A 17 17 17	M J J A 17 17 17 17

Market environment – Fundamental changes taking place

Trend

Client behaviour

• Still fundamental scepticism towards the financial
• Quick and inexpensive information possibilities digitalisation
• 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. Strategy
• 1. Key Financials & Outlook
• 1. Appendix

Successful strategic diversification over the last years

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
Successful diversification beyond the old-age provision –			FY 2016: Constitution of commission income (in €	million)
€ million			Total 570.1
600 Total 472.4 500
400			348.6	Significant increase
300	230.9 205.5	237.8	298.6 247.1	in 2016
183.9 200 161.3				CAGR +11.6% p.a.
100				since 2009
0 2009 2010	2011 2012	2013	2014 2015 2016
Wealth management	Non-life insurance Health insurance	Loans and mortgages	Other commission and fees (incl. real estate)	Total commission and fees

Even more balanced revenue basis in the medium term

Development of revenue distribution

Strategic agenda 2017

Strategic focus	Implementation
1	• Extension of the scope for action regarding future investments through altered group structure
Organic growth	• Strengthening of the university segment in the private client business through focus on core topics for young clients and consultants	Making MLP more
	• Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business	independent of short-term market influences
	• Continued implementation of digitalisation strategy: in particular extension of digital information and service offers	and returning it to a significantly
2 Inorganic growth	• MLP Group open to acquisitions in two areas: • In the market segment of FERI and DOMCURA • In MLP's private client business	increased profit level
3
Continued Cost management	• Structural reduction of cost base initiated in 2016 – ongoing efficiency management programme

Banking activities with supervisory or regulatory relevance to be bundled at one company

Current structure Intended structure

Current scope of services for clients will be maintained Better opportunities for strategic collaborations

Scope for action significantly extended through new group structure

Effects on equity

Further strengthening of the business model Scope for investments and acquisitions First step of € 27 million already released in H1/2017

Page 13 September 2017 Berenberg and Goldman Sachs German Corporate Conference

Private client business – strengthening the university segment

Number of academics in active employment

million

Sources: Germany's Federal Employment Agency (2016) and Vogler-Ludwig et al. (2016)

• Increasing potential for MLP in the university segment
• Measures of the last few years are having an impact, particularly the introduction of a training allowance for new consultants
• Sharper focus, among other things by introducing a dedicated divisional board member for the university segment
• Objectives: To further increase presence and gain new clients and consultants more quickly

Sharper focus on university segment

MLP Sales Organisation

N = Focus: Winning new clients E = Focus: Serving existing clients

Online policy sales successfully launched for basic products – New client portal entered its first extension phase in April

The MLP Group

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

Old-age provision: MLP remains the market leader at new guarantees

Premium sum: old-age provision

MLP product mix at newly brokered contracts

in € million

H1/2017: Assets under management rises to € 32.0 billion

Assets under management Premium sum: old-age provision

H1/2017: Strong growth in wealth management and in the real estate brokerage ("other commissions and fees")

Revenue

in € million

	Q2 2016	Q2 2017	 in %	H1 2016	H1 2017	 in %	Wealth management:
Old-age provision	45.3	42.0	-7	81.6	77.2	-5
Wealth management	40.4	46.4	15	79.3	92.1	16
Health insurance	11.4	10.9	-4	23.3	22.7	-2
Non-life insurance	18.0	19.4	8	68.7	72.3	5
Loans and mortgages*	3.2	3.9	22	6.8	7.7	13
Other commissions and fees	3.3	5.0	52	5.7	9.4	65
Interest income	5.1	5.2	2	10.3	10.3	0

• Assets under management increase to € 32.0 billion (31/03/2017: € 31.6 billion)

*excluding MLP Hyp

H1/2017: Operating EBIT at € 15.9 million significantly above the previously years figure

Income statement

in € million	Q2 2016	Q2 2017		H1 2017
Total revenue	131.3	137.6	283.6	300.6
Operating EBIT*	0.4	2.7	9.3	15.9
EBIT	-1.0	2.1	7.7	14.5
Finance cost	-0.3	-0.1	-0.4	-0.6
EBT	-1.2	1.9	7.3	13.9
Taxes	0.7	0.0	-1.7	-3.4
Group net profit	-0.6	2.0	5.6	10.5
EPS in € (diluted/undiluted)	-0.01	0.02	0.05	0.10

H1 2016 One-off expenses for further optimisation of the group structure.

• H1 2017: € 1.4 million (€ 1.6 million)
• Q2 2017: € 0.6 million (€ 1.4 million)

*before one-off exceptional costs

Page 21

H1/2017: Core capital ratio at 16.3 percent

in € million

Assets	31/12/2016	30/06/2017
Intangible Assets	168,4	164,9
Financial Assets	162,3	194,1
Receivables from clients in the banking business	626,5	677,7
Receivables from banks in the banking business	591,0	635,7
Other receivables and assets	122,8	89,2
Cash and cash equivalents	184,8	158,4
Liabilities and shareholders equity Shareholders equity	383,6	387,9
Provisions	91,2	75,5
Liabilities due to clients in the banking business	1.271,1	1.359,9
Liabilities due to banks in the banking business	37,7	52,2
Other Liabilities	146,9	115,1
Total	1.944,1	2.003,6

Equity ratio: 19.4 %

Core capital ratio : 16.3 %

Eligible own funds: ~240 € million

Net liquidity of around € 148 million

Outlook: Operating EBIT of at least € 45 million anticipated

Qualitative assessment of the development of sales revenues

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

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

• MLP laid solid fundations in the first half of the year
• Strategic initiatives are continuously running according to schedule
• As is crucial in our business model, the second half of the year is particularly important – above all the fourth quarter
• High market burdens remain – especially in the old-age provision
• Outlook confirmed: Operating EBIT of at least € 45 million anticipated

The MLP Group

• 1. MLP at a glance
• 1. Strategy
• 1. Key Financials
• 1. Appendix

Q2: Total revenue increases by 5 percent to € 137.6 million

Total revenue Q2

in € million

Highest H1 revenue for five years

Total revenue H1

FY 2016: Gains primarily in the non-life insurance segment

Revenue

€ million

	2015	2016	 in %	Q4 2015	Q4 2016	 in %
Old-age provision	215.7	221.5	2.7	87.8	94.3	7.4
Wealth management	166.0	166.4	0.2	44.7	43.5	–2.7
Health insurance	45.9	45.8	-0.3	12.3	11.8	–4.6
Non-life insurance	54.9	105.6	92.5	18.1	20.0	10.5
Loans and mortgages*	16.2	15.4	-4.7	5.1	5.0	–0.9
Other commission and fees	15.6	15.4	-1.1	5.1	6.6	28.2
Interest income	21.4	20.5	-4.2	5.3	4.9	–6.7

* Excluding MLP Hyp

FY 2016: Operating EBIT at € 35.1 million

Income statement

€ million	Q4 2015	Q4 2016	2015	2016
Total revenue	186.5	191.7	554.3	610.4
Operating EBIT*	23.3	19.3	30.7	35.1
EBIT	23.3	8.2	30.7	19.7
Finance cost	-0.4	-0.4	-2.8	-0.9
EBT	22.9	7.7	28.0	18.7
Taxes	-6.8	-2.6	-8.2	-4.1
Net profit	16.1	5.1	19.8	14.7
EPS in euros (diluted/basic)	0.15	0.05	0.18	0.13

2016:

• Efficiency programme: one-off expenses of € 15.4 million (€ 11.1 million in Q4/2016)

*before one-off expenses

FY 2016: Balance sheet – Core capital ratio at 14.2 %

Assets	Dec. 31, 2015	Dec. 31, 2016
Intangible assets	174.5	168.4
Financial assets	147.9	162.3
Receivables from clients in the banking business	542.7	626.5
Receivables from banks in the banking business	600.3	591.0
Other receivables and assets	112.5	122.8
Cash and cash equivalents	77.5	184.8

Equity ratio: 19.7 %

Return on equity: 3.8 %

Core capital ratio: 14.2 %

Liabilities and shareholders' equity

Shareholders' equity	385.8	383.6
Provisions	86.5	91.2
Liabilities due to clients in the banking business	1,102.6	1,271.1
Liabilities due to banks in the banking business	23.1	37.7
Other liabilities	140.2	146.9
Total	1,752.7	1,944.1

FY 2016: Assets under management up to EUR 31.5 billion – Old age provision bottomed out

Assets under management Old-age provision [in € billion] [in € million] 0 500 1000 1500 2000 2500 3000 3500 4000 2015 2016 9M 2,076 9M 1,459 1,613 3,689 3,473 10.8 20.2 31.5 0 5 10 15 20 25 30 35 31/12/2006 31/12/2011 31/12/2016 0 10 20 30 40 50 60 70 80 90 100 94.3 45.7 45.3 36.2 87.8 41.1 44.8 42.0 Q1 Q2 Q3 Q4 2015 2016 Revenue rising for 3 consecutive quarters Brokered premium sum [in € million]

Page 32 September 2017 Berenberg and Goldman Sachs German Corporate Conference

DOMCURA: Underwriting agency selects the appropriate insurer from the marketplace

Positive effects on MLP through DOMCURA

H1/2017: MLP attracts 10,000 new clients (families)

Gross number of new clients (families) Consultants

13 % of new clients in H1 acquired via online policy sales