MLP SE — Investor Presentation 2017

May 23, 2017

The MLP Group – The partner for all financial matters

Management Roadshow

The MLP Group

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

The MLP Group at a glance

MLP Group – An Overview

Clients		• Around 519,800 private clients (families) in the mass affluent segment of the market target groups: graduates (i.e. physicians, solicitors, engineers and economists) • Around 19,300 corporate and institutional clients				*as of March 31, 2017
s a e ar s s e n si u b n ai	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
								39%
	Wealth Management	€	31.6 billion in assets under management as at March 31, 2017 in business with mass affluent clients, HNWI and institutional investors.
	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: 106.200 (Xetra, 12-month average as at end of April 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: *influenced by one-off expenses	11.8% 4.0% 2010 2011	6.4% 4.6% 3.1% 2012 2013 2014	3.3% 1.9%* 2015 2016
Dr. h. c. Manfred Lautenschläger 23.22% HDI 9.36% Barmenia 5.49% Shareholder Allianz SE 6.18% structure Angelika Lautenschläger 5.94% Freefloat (Def. Deutsche Börse) 49.81% [FMR LLC: 4.72%, Internationale Kapitalanlagegesellschaft			Freefloat mbH: 3,03%, Schroders PLC: 2.99%]	Barmenia Allianz SE HDI Pensionskasse	Dr. h. c. Manfred Lautenschläger Angelika Lautenschläger
Research coverage	Equinet/ESN Bankhaus Lampe Independent Research Hauck & Aufhäuser	Accumulate Hold Hold Buy	PT 5.50 PT 5.00 PT 5.30 PT 7.40

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

Market environment remains difficult – Sector-specific key indicators

Persons holding comprehensive private health insurance

Source: Association of Private Health Insurers (PKV)

Source: German Insurance Association (GDV e.V.)

Source: German Insurance Association (GDV e.V.)

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

MLP is a pioneer in terms of new guarantee products

Market product mix for newly brokered policies

MLP product mix for newly brokered policies

*previous year's values in brackets

The MLP Group

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

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
Successful diversification beyond the old-age provision –			FY 2016: Constitution of commission income (in €	million)
€ million 600				Total 570.1
Total 472.4 500
400			298.6	348.6	Significant increase in 2016
300 183.9	230.9 205.5	237.8	247.1
200 161.3 100					CAGR +12.7% p.a. 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

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]

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

Revenue

€ million

2015	2016	 in %	Q4 2015	Q4 2016	 in %
215.7	221.5	2.7	87.8	94.3	7.4
166.0	166.4	0.2	44.7	43.5	–2.7
45.9	45.8	-0.3	12.3	11.8	–4.6
54.9	105.6	92.5	18.1	20.0	10.5
16.2	15.4	-4.7	5.1	5.0	–0.9
15.6	15.4	-1.1	5.1	6.6	28.2
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

Q1/2017: Total revenue rises to € 163.0 million

Total revenue Q1

in € million

Successful diversification beyond the old-age provision

Commission income in Q1 (all consulting areas, excl. old-age provision)

in € million

Wealth management Health insurance Non-life insurance Loans and mortgages Other commission and fees Total commission and fees

Q1/2017: Strong growth in wealth management and real estate brokerage ("other commissions and fees")

Revenue

in € million

	Q1 2016	Q1 2017	 in %
Old-age provision	36.2	35.2	-3
Wealth management	38.9	45.7	17
Health insurance	11,8	11.9	1
Non-life insurance	50.7	52.8	4
Loans and mortgages*	3.6	3.8	6
Other commissions and fees	2.4	4.4	83
Interest income	5.2	5.1	-2

*excluding MLP Hyp

Q1/2017: Operating EBIT increases by 51 percent to € 13.3 million

Income statement

in € million	Q1 2016	Q1 2017
Total revenue	152.4	163.0
Operating EBIT*	8.8	13.3
EBIT	8.7	12.5
Finance cost	-0.1	-0.4
EBT	8.6	12.0
Taxes	-2.4	-3.5
Group net profit	6.2	8.6
EPS in € (diluted/undiluted)	0.06	0.08

One-off expenses for further development of the group structure:

• Q1/2017: € 0.8 million
• FY 2017: A total of € 9 million is still expected

*before one-off exceptional costs

Q1/2017: Core capital ratio rises to 16 percent

in € million

Assets	31/12/2016	31/03/2017
Intangible assets	168.4	166.4
Financial assets	162.3	186.9
Receivables from clients in the banking business	626.5	662.2
Receivables from banks in the banking business	591.0	619.5
Other receivables and assets	122.8	98.6
Cash and cash equivalents	184.8	186.1
Liabilities and shareholders equity
Shareholders equity Provisions	383.6 91.2	393.3 93.9
Libilities due to clients in the banking business	1,271.1	1,294.3
Liabilities due to banks in the banking business	37.7	45.4
Other liabilities	146.9	166.4
Total	1,944.1	2,006.4

Equity ratio: 19.6 %

Core capital ratio: 16.0 %

Eligible own funds: ~240 € million

Q1/2017: Net liquidity of around € 213 million

Q1/2017: Assets under management rises to € 31.6 billion

Assets under management Premium sum: old-age provision

Q1/2017: MLP attracts 4,900 new clients (families)

Gross number of new clients (families)

Q1: 15 percent of all new customers have been acquired online

Consultants

Q1/2017: MLP serves 519,800 private and 19,300 corporate 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) 517,400 519,800	31/12/2016 31/03/2017
Corporate and institutional clients	• Corporate clients in occupational pension provision • Institutional clients at FERI • Sales partners at DOMCURA • Freelancers as employers	19,200 19,300	Number of corporate and institutional clients 31/12/2016 31/03/2017

The MLP Group

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

Strategic agenda 2017

focus	Strategic	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
		• Further broadening of revenue basis: primarily through further expansion of wealth management and non-life insurance business • Continued implementation of digitalisation strategy: in particular extension of digital information and service offers
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
3	Continued Cost management	• Structural reduction of cost base initiated in 2016 – ongoing efficiency management programme

Making MLP more independent of short-term market influences and returning it to a significantly increased profit level

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

Current structure Intended structure as of 2018

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

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 private client business

A = Focus: Winning new clients B = Focus: Serving existing clients

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

Even more balanced revenue basis in the medium term

Development of revenue distribution

Outlook: Operating EBIT of at least € 45 million anticipated

Forecast development of administrative expenses

Qualitative assessment of the development of sales revenue

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

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

MLP anticipates EBIT of at least € 36 million in 2017 (operating EBIT: at least € 45 million)

• MLP increased important key performance indicators in 2016. In light of market conditions that remained difficult, this development can be seen as satisfactory.
• Especially in old-age provision the market environment remains challenging furthermore political uncertainties in health insurance
• With the change of the group structure and further strengthening of the university segment, MLP is pressing ahead in 2017. Measures running according to plan.
• Forecast confirmed: As announced Operating EBIT should reach at least € 45 million

The MLP Group

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

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

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

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

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