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MLP SE

Quarterly Report May 18, 2011

289_10-q_2011-05-18_1eca344b-0fb6-49c6-b2dd-1a7639945821.pdf

Quarterly Report

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Interim Group Report for the fi rst quarter 2011

MLP Group

MLP key fi gures

All fi gures in € million 1st quarter 2011 1st quarter 2010 Change
Continuing operations
Total revenue 130.8 121.2 7.9 %
Revenue 125.5 115.3 8.8 %
Other Revenue 5.3 5.9 – 10.2 %
Earnings before interest and tax
(EBIT)
8.6 4.0 >100 %
EBIT margin (%) 6.6 % 3.3 %
Earnings from continuing
operations
4.6 2.0 >100 %
Earnings per share (diluted) in € 0.04 0.02 >100 %
MLP Group
Net profi t (total) 4.7 1.7 >100 %
Earnings per share (diluted) in € 0.04 0.02 >100 %
Cash fl ow from operating activities 48.9 43.3 12.9 %
Capital expenditure 0.6 1.0 – 40.0 %
Shareholders' equity 432.6 428.41 1.0 %
Equity ratio 28.9 % 28.5 %1
Balance sheet total 1,498.5 1,505.41 – 0.5 %
Clients2 778,000 774,5001 0.5 %
Consultants 2 2,222 2,2731 – 2.2 %
Branch offi ces 2 186 1921 – 3,1 %
Employees 1,626 1,706 – 4.7 %
Arranged new business 2
Old-age provisions (premium sum in € billion) 0.9 1.0 – 10.0 %
Loans and mortgages 370.0 262.0 41.2 %
Assets under management in € billion
1
19.9 19.81 0.5 %

As at December 31, 2010. 2 Continuing operations.

[Table 01]

Interim Group Report for the fi rst quarter 2011

The fi rst quarter 2011 at a glance:

  • Total revenue grow by 8 % to € 130.8 million (Q1 2010: € 121.2 million)
  • EBIT more than doubles to € 8.6 million (€ 4.0 million) despite one-off
  • exceptional costs; operating EBIT amounts to € 11.8 million
  • Net profi t rises from € 2.0 million to € 4.6 million
  • Outlook: Operating EBIT margin to increase to 15 % by the end of 2012

table of contents

  • 5 Interim Management Report for the fi rst quarter 2011
  • 5 Macroeconomic environment
  • 6 Situation within the industry and the competitive environment
  • 9 Company situation
  • 9 Results of operations
  • 12 Net assets
  • 14 Financial position
  • 15 Personnel
  • 16 Communication and marketing activities
  • 16 Legal corporate structure and executive bodies
  • 17 Segment report
  • 18 Risk report
  • 19 Related party disclosures
  • 19 Outlook for the current fi nancial year/forecast
  • 21 Events subsequent to the reporting date
  • 22 Investor Relations
  • 24 Income statement and statement of comprehensive income
  • 25 Consolidated statement of fi nancial position
  • 26 Consolidated statement of cash fl ows
  • 27 Statement of changes in equity
  • 28 Notes to the consolidated fi nancial satements
  • 37 List of fi gures and tables
  • 38 Executive bodies at MLP AG
  • 39 Financial calendar

Profi le

MLP – THE LEADING INDEPENDENT CONSULTING COMPANY

MLP is Germany's leading independent consulting company. Supported by comprehensive research, the Group provides a holistic consulting approach that covers all economic and fi nancial questions for private and corporate clients, as well as institutional investors. The key aspect of the consulting approach is the independence of insurance companies, banks and investment fi rms. The MLP Group manages total assets of more than € 19.9 billion and supports more than 778,ooo private and more than 4,ooo corporate clients. The fi nancial services and wealth management consulting company was founded in 1971 and holds a full banking licence.

The concept of the founders, which still remains the basis of the current business model, is to provide long-term consulting for academics and other discerning clients in the fi elds of old-age provision, wealth management, health insurance, non-life insurance, loans and mortgages and banking. Those with assets above € 5 million are looked after by the subsidiary Feri Family Trust. Moreover, the Group provides consulting services to institutional investors via Feri Institutional Advisors GmbH. Supported by its subsidiary TPC and the joint venture HEUBECK-FERI Pension Asset Consulting GmbH, MLP also provides companies with independent consulting and conceptual services in all issues pertaining to occupational pension schemes and asset and risk management.

Interim Management Report for the fi rst quarter 2011

MACROECONOMIC ENVIRONMENT

The German economy grew by 3.6 % in 2o1o and this positive development also continued in the fi rst quarter of the current fi nancial year. According to initial estimates, the gross domestic product in the fi rst quarter rose by o.9 % compared to the fourth quarter 2o1o. The macroeconomic situation in Germany is extremely important to the overall business development of MLP as the company generates almost 1oo % of its revenue in this market. Despite rising infl ation due to the increases in the price of oil and other commodities, the tsunami disaster and nuclear reactor accident in Japan, the events in North Africa and the EU debt crisis, the positive trend remains unbroken. In the fi rst quarter, the favourable development of the overall economy also had a positive effect on the labour market in Germany, where the number of people without jobs continued to fall. At the end of the fi rst quarter, the unemployment rate stood at just 7.6 %, compared to 8.5 % at the end of March 2o1o.

The favourable economic development during the period under review had only a partially positive infl uence on the business development of MLP. Although we were able to achieve signifi cant revenue growth in the areas of health insurance and wealth management, business in old-age provision continued to decline. Here the effects of the economic and fi nancial crisis continued to prevail and our clients remain hesitant with respect to the conclusion of long-term old-age provision contracts.

German Gross Domestic Product, change in % compared to the previous quarter

[Figure 01]

SITUATION WITHIN THE INDUSTRY AND THE COMPETITIVE ENVIRONMENT

Old-age provision

In the fi rst quarter of the current fi nancial year, the old-age provision market in Germany remained diffi cult. Although the general public is acutely aware of the need for greater investment in private and occupational pensions due to the reduction of benefi ts provided by the state pension scheme, clients still remain hesitant with respect to the conclusion of long-term old-age provision contracts. According to fi gures recently released by the Gesamtverband der Deutschen Versicherungswirtschaft e.V. (German Insurance Association), new business for life insurance declined in the fi rst quarter 2o11. This trend was also confi rmed by a survey carried out by the opinion research institute TNS Infratest, which reported that the willingness of the German public to put money aside for old-age provision has decreased. The proportion of the population who invest money in old-age provision declined from 68 % to 62 % .

MLP was unable to escape this trend. In the fi rst quarter 2o11 our revenue in old-age provision fell from € 58.9 million to € 5o.5 million.

What effect do the fi nancial crisis and its possible consequences have on the most important saving targets of the German population?

[Figure 02]

Health provision

The health insurance market in Germany developed very positively during the period under review. The changes to the legal framework conditions that were decided upon last year, and which came into effect on January 1, 2o11, have had a positive effect on demand for full private health insurance and supplementary health insurance. The reform included the following key components :

  • The standard premium for statutory health insurance rose from 14.9 % to 15.5 %.
  • The 3-year waiting period before taking out private health insurance was shortened to one year.
  • If the additional premium set by the statutory healthcare funds exceeds 2 % of an insuree's income, the difference is fi nanced from tax revenue.

The adopted amendments and the continuing discussion about the fi nanceability of the German state health insurance system are strengthening clients' conviction that, in future, the fi nanceability of this system can only be secured through further rises in premiums and further reductions in the catalogue of treatments and services provided. Consequently, there is an increasing willingness on the part of clients to cover health risks in the form of full private health insurance or through supplementary health insurance policies. During the period under review our revenue in this area more than doubled and rose to € 28.o million.

75 % Have doubts 93 % Have doubts Question: "The German federal government has agreed on a new reform of the healthcare system. Do you believe that this healthcare reform will make our healthcare system fi nancially viable for the long-term or do you have your doubts?" POPULATION DOCTORS 10 % The healthcare reform assures fi nancial viability in the long-term 2 % The healthcare reform assures fi nancial viability in the long-term 15 % Not sure 5 % Not sure Basis: Federal Republic of Germany, population from 16 years old and above, hospital doctors and registered doctors Source: MLP Health Report 2010

Financial viability of the German healthcare system

[Figure 03]

Wealth management

The German investment fund industry recorded positive development in the fi rst quarter 2o11 but private investors were nevertheless infl uenced by the events in Japan and North Africa as well as by the EU debt crisis - and consequently withdrew € 4.6 billion from retail funds during the period from January to March. On the other hand, institutional investors entrusted some € 14.4 billion of new monies to funds. The outfl ows due to withdrawals by private investors particularly affected equity and fi xed income funds. At the reporting reference date on March 31, 2011, registered investment funds in Germany managed total assets of € 1,791.6 billion, corresponding to a fall of 2.1% compared to the end of 2o1o.

Infl ows and outfl ows in various types of mutual investment funds in Germany in Q1 2011 (in € billion)

These positive developments in wealth management were also apparent at the MLP Group during the period under review. In the fi rst quarter 2o11 we succeeded in generating infl ows of funds from private and institutional clients. At March 31, 2o11, managed client monies (Assets under Management) amounted to € 19.9 billion compared to € 19.8 billion at December 31, 2o1o.

Competition

The competitive situation in the German fi nancial services market did not fundamentally change in the fi rst quarter 2o11. The market continues to be highly fragmented. Banks and insurance companies with their respective sales channels, as well as associated sales organisations and brokers all compete for market share. The regulatory framework conditions have a signifi cant infl uence on the competition in the market. During the period under review, the German Bundestag passed the Investor Protection Act. Following the negative experiences during the fi nancial crisis, the new law seeks to protect investors by providing them with more information, stipulating higher training standards for fi nancial consultants and allowing greater sanction possibilities in cases of misguided advice. It remains to be seen whether these objectives will be achieved (see also chapter "Outlook/Forecast").

The ongoing regulation of the fi nancial services market will increase competition among the providers and thereby further accelerate consolidation within the market.

Company situation

RESULTS OF OPERATIONS

Signifi cant revenue growth

MLP made a successful start to 2o11. In the fi rst quarter, total revenue rose by 8 % to € 13o.8 million (€ 121.2 million). The increase in total revenue was primarily attributable to the revenue from commissions and fees, which grew by 9 % to € 118.6 million (€1o9.1 million) in the period from January to March. Interest income rose slightly by € o.7 million to € 6.9 million, whilst other revenue declined from € 5.9 million to € 5.3 million .

The breakdown of the revenue from commissions and fees shows very dynamic development in the healthcare area where revenue more than doubled to € 28.o million (€ 12.9 million). The main reasons for the increased demand were the shortening of the waiting period for employees wishing to switch to private healthcare insurance as well as an increasingly sceptical perception of the statutory healthcare system following the most recent healthcare reform and the extensive public discussion. The positive trend of recent quarters also continued in the wealth management area – where revenue rose by 5 % to € 19.3 million (€ 18.3 million). This fi gure refl ects the positive new business development, both at MLP as well as at our subsidiary Feri. One of the more noticeable current aspects is the desire on the part of many clients to buy their own home. Against this background, revenue in loans and mortgages increased by 48 % from € 2.1 million to € 3.1 million. At the same time, the earnings from the joint venture company MLP Hyp, through which MLP conducts a considerable further portion of its residential property mortgages business, doubled to € o.2 million (€ o.1 million). Revenue in non-life insurance increased modestly, rising by 2 % to € 16.8 million (€ 16.4 million). However, the framework conditions in old-age provision remain diffi cult, as the entire market is still beset by reluctance and hesitancy on the part of clients with respect to the conclusion of long-term contracts. Consequently, revenue in the fi rst quarter fell from € 58.9 million to € 5o.5 million.

Total revenue from continuing operations (in € million)

Development of expenses

In the fi rst quarter of the current fi nancial year the mainly variable commission expenses rose from € 4o.3 million to € 48.3 million. On the other hand, interest expenses decreased from € 2.5 million to € 2.2 million.

Personnel expenses rose from € 27.6 million to € 29.9 million. This fi gure includes one-off exceptional costs within the framework of our announced investment and effi ciency programme (see also outlook report).

We were able to signifi cantly reduce other operating expenses in the fi rst quarter which decreased by 9.8 % to € 38.5 million. This fi gure also refl ects the success of our effi ciency measures in the previous fi nancial year. Thanks to process optimisation and savings in almost all areas of the company, we succeeded in reducing the other operating expenses. This item also includes one-off exceptional costs resulting from our announced investment and effi ciency programme.

EBIT more than doubled

In the fi rst quarter, EBIT (earnings before interest and taxes) rose sharply to € 8.6 million (€ 4.o million). In addition to premature costs within the framework of the participation programme for MLP consultants and employees amounting to € 1.4 million, this fi gure also includes one-off exceptional costs of € 3.2 million. These were mainly due to severance payment costs, incurred within the framework of the announced investment and effi ciency programme. Operating EBIT thus amounted to € 11.8 million .

As planned, the fi nal dividend payment to the minority shareholders of the subsidiary Feri Finance AG reduced the fi nancial result in the fi rst quarter by € 1.7 million. This resulted in net profi t from continuing operations of € 4.6 million (€ 2.0 million). Group net profi t rose to € 4.7 million (€ 1.7 million). Earnings per share (basic and diluted) thus amounted to € o.o4 (€ o.o2).

Earnings development of continuing operations

in € million 1st quarter 2011 1st quarter 2010 Change
Total revenue 130.8 121.2 7.9 %
EBIT 8.6 4.0 >100 %
EBIT margin 6.6 % 3.3 %
Finance costs – 1.0 – 0.5 >100 %
EBT 7.6 3.5 >100 %
EBT margin 5.8 % 2.9 %
Income tax – 2.9 – 1.6 81.3 %
Net profi t (continuing operations) 4.6 2.0 >100 %
Net margin 3.5 % 1.7 %

[Table 02]

EBIT from continuing operations (in € million)

Assets under Management continue to rise

In the fi rst quarter, the volume of assets managed by the MLP Group further increased against the overall market trend. At March 31, 2o11, Assets under Management stood at € 19.9 billion (December 31, 2o1o: € 19.8 billion). In old-age provision, the premium sum amounted to € o.9 billion and was thus only slightly below the previous year (Q1 2o1o: € 1.o billion). Occupational pensions accounted for 1o % of this fi gure (full year 2o1o: 9 % ).

7,800 new clients

MLP welcomed 7,8oo (8,ooo) new clients in the period from January to March. The total number of clients rose to 778,ooo (December 31, 2o1o: 774,5oo). The number of consultants fell to 2,222 (December 31, 2o1o: 2,273).

NET ASSETS

Total assets fall

At the balance sheet reference date on March 31, 2o11 total assets of the MLP Group stood at € 1,498.5 million, corresponding to a decrease of o.5 % compared to December 31, 2o1o. The main changes on the asset side of the balance sheet relate to four items. Our receivables from fi nancial institutions fell by € 16.o million to € 469.o million. The change is primarily attributable to the profi t transfer from our subsidiary MLP Finanzdienstleistungen AG for the fi nancial year 2o1o and to the new investment of monies. Due to the redeployment of liquid funds into longer-term investments, our fi nancial investments increased by € 5o.5 million to € 3o3.2 million. Other accounts receivable and other assets fell from € 122.o million to € 92.2 million as a result of usual seasonal variations. This item mainly consists of receivables from insurance companies for whom we have brokered insurance contracts. Due to the usual strong year-end business, these rise signifi cantly at the end of the year and then fall again during the course of the following fi nancial year.

in € million March 31, 2011 Dec 31, 2010 Change
Intangible Assets 146.4 148.2 – 1.2 %
Property, plant and equipment 73.2 74.4 – 1.6 %
Investment property 11.1 11.2 – 0.9 %
Shares accounted for using the equity method 3.1 2.9 6.9 %
Deferred tax assets 3.5 3.3 6.1 %
Receivables from clients in the banking business 341.1 343.5 – 0.7 %
Receivables from banks in the banking business 469.0 485.0 – 3.3 %
Financial investments 303.2 252.7 20.0 %
Tax refund claims 9.3 11.8 – 21.2 %
Other accounts receivable and other assets 92.2 122.0 – 24.4 %
Cash and cash equivalents 46.3 50.5 – 8.3 %
Total 1,498.5 1,505.4 – 0.5 %

Assets as at March 31, 2011

[Table 03]

High equity ratio

On the liabilities side of the balance sheet equity capital rose from € 428.4 million to € 432.6 million and the equity capital position of the Group therefore remains very good. The equity ratio improved slightly from 28.5 % to 28.9 %. The change was mainly attributable to the profi t in the period under review .

The development of our deposit business is shown in the liabilities due to clients and fi nancial institutions. Liabilities due to clients from the banking business increased from € 819.3 million to € 830.9 million. These mainly consist of deposits in the areas of open and instant access accounts as well as deposits in connection with our credit card business.

Other liabilities reduced by 12.9 % to € 154.7 million. These mainly contain commission claims by our consultants and fell in the fi rst quarter in line with usual seasonal variations. Due to our usually strong year-end business, the commission claims by our consultants rise sharply at the balance sheet reference date on December 31, but then fall again in the following quarters .

in € million March 31, 2011 Dec 31, 2010 Change
Shareholders' equity 432.6 428.4 1.0 %
Provisions 52.6 52.0 1.2 %
Deferred tax liabilities 10.7 10.6 0.9 %
Liabilities due to clients in the banking business 830.9 819.3 1.4 %
Liabilities due to banks in the banking business 14.9 16.4 – 9.1 %
Tax liabilities 2.0 1.1 81.8 %
Other liabilities 154.7 177.7 – 12.9 %
Total 1,498.5 1,505.4 – 0.5 %

[Table 04]

Liabilities and shareholders' equity as at March 31, 2011

FINANCIAL POSITION

In the fi rst quarter 2o11 cash fl ow from operating activities in continuing operations improved slightly to € 49.o million, compared to € 46.5 million in the previous year .

Cash fl ow from investing activities in the continuing operations improved from € –48.7 million to € 27.o million. Here, matured term deposits were not reinvested during the period under review, whereas in the fi rst quarter 2o1o investments were made in term deposits with a duration of more than three months.

Our cash fl ow from fi nancing activities in the continuing operations also developed positively during the period under review, improving from € –2.2 million in the fi rst quarter of the previous year to € –o.oo3 million in the period under review .

After the fi rst three months, the Group's total liquid assets stood at € 226 million. The liquidity situation therefore remains very good. The Group has adequate liquidity reserves available. In addition to the liquid funds, MLP also has access to free credit lines.

Condensed statement of cash fl ows in continuing operations

in € million 1st quarter 2011 1st quarter 2010
Cash and cash equivalents at the beginning of the period 125.5 123.6
Cash fl ows from operating activities 49.0 46.5
Cash fl ows from investing activities 27.0 – 48.7
Cash fl ows from fi nancing activities – 0.003 – 2.2
Changes in cash and cash equivalents 75.9 – 4.4
Infl ows/outfl ows due to divestments – 0.1 – 3.2
Cash and cash equivalents at the end of the period 201.3 116.0

[Table 05]

Capital measures

No capital measures were undertaken during the period under review.

Investments

During the period under review we invested € o.6 million compared to € 1.o million in the previous year. 7o % of this fi gure was allocated to the fi nancial services sector – mainly for software as well as for operating and offi ce equipment (including hardware). A signifi cant portion of the funds was allocated to projects designed to improve IT support for client consulting activities. All investments were fi nanced from current cash fl ows.

General statement on the business development

In the fi rst quarter of the current fi nancial year MLP increased revenue despite the continuingly diffi cult market conditions in old-age provision. Together with the successful cost reduction measures, this led to a signifi cant improvement in Group earnings. The equity capital base and the liquidity of the Group both increased during the period under review. We are therefore very satisfi ed with MLP's performance in the fi rst quarter and regard the economic position of the Group as positive – both at the end of the period under review as well as at the time of preparation of the interim report.

PERSONNEL

The number of employees reduced further during the period under review. At the reference date on March 31, the MLP Group had a total of 1,626 employees, corresponding to a reduction of 8o people compared to March 31, 2010. Without taking the number of marginal part-time employees into account, the number of employees decreased by 36 to 1,446. The development of personnel expenses is shown in the section "Results of operations ".

During the period under review MLP received the "Top Employer Germany" award for the fi fth consecutive time and further improved its score in terms of image, work-life balance and employee remuneration. Through this award, the Corporate Research Foundation Institute (CRF), which is one of the leading research companies in the area of employer certifi cation and employer branding, once again confi rmed MLP's outstanding corporate and employee culture.

March 31, 2011 March 31, 2010
Financial Services 1,367 1,435
Feri 247 257
Holding 12 14
Total 1,626 1,706

Number of employees

[Table 06]

COMMUNICATION AND MARKETING ACTIVITIES

In 2o11 MLP celebrates its 4oth anniversary. To mark the occasion, the company is planning numerous activities under the theme "4o Years of MLP – next generation of fi nancial consulting". One of the fi rst highlights of the anniversary year will be the "MLP Surfi n' Tour 2o11". During this road show which starts in May, MLP will be a guest at over 3o university sites throughout Germany and will be recreating the atmosphere of the company's foundation under the theme "Come and ride the wave of success". The new edition of the client magazine FORUM also includes extensive content on the company's anniversary year. The range of offerings is rounded off with a fi lm in which MLP enters into a dialogue with the next generation – the children of MLP consultants. The fi lm, together with other initiatives can be viewed on the MLP website .

In February 2o11, MLP awarded international scholarships to 16 students within the framework of the "Join the best" competition which MLP runs in cooperation with Global Players and the Handelsblatt publishing group as media partner. Through this initiative, which has been taking place annually since 2oo4, the participating companies make a joint contribution towards promoting the international mobility of young academics. The chosen students are invited to take up two to six-month international internships at renowned companies and institutions, each of which involves a specifi c project and which was set up exclusively for "Join the best". In addition, a further 100 internships were awarded during the company contact fair .

LEGAL CORPORATE STRUCTURE AND EXECUTIVE BODIES

On March 31, and by amicable arrangement, Ralf Schmid, Chief Operating Offi cer (COO) of the MLP Group as well as a member of the Executive Boards of MLP AG and the subsidiary MLP Finanzdienstleistungen AG, resigned from his positions on both boards in order to pursue new professional challenges elsewhere. His duties were reassigned and split among the other members of the Executive Board. The board position vacancy will not be refi lled.

On February 1 Reinhard Loose took up his duties as Chief Financial Offi cer. The Supervisory Board appointed Mr. Loose to this position in November 2o1o.

SEGMENT REPORT

The MLP Group structures its business into the following operating segments:

  • Financial Services
  • Feri
  • Holding

A detailed description of the individual segments is contained on pages 212 et seq. of the Annual Report 2o1o.

Financial services segment

Total revenue in the fi nancial services segment during the period under review rose by 8.3 % to € 121.3 million. This was due to positive development in the areas of wealth management, fi nancing and non-life insurance. The development in the area of health insurance was particularly positive (further details are contained in the section "Results of Operations").

The earnings situation in the fi nancial services segment improved signifi cantly in the fi rst quarter. Earnings before interest and taxes (EBIT) more than doubled, rising from € 5.3 million in the fi rst quarter 2o1o to € 11.5 million in the period under review. In addition to the increase in total revenue, this improvement was also particularly attributable to the decrease in other operating expenses which fell by 9.7 % to € 37.1 million. The fi nancial result remained unchanged and amounted to € –o.3 million. This led to earnings before taxes (EBT) in the fi nancial services segment of € 11.1 million (€ 5.o million).

Total revenue and EBIT for the fi nancial services segment (in € million)

Feri Segment

Our subsidiary Feri Finance AG, which forms the Feri segment, also reported positive development in total revenue during the period under review. These rose by 6.8 % to a total of € 9.4 million. Earnings before interest and tax (EBIT) amounted to € –o.4 million (€ –o.2 million). The lack of improvement in EBIT in the fi rst quarter – despite an increase in total revenue – was mainly due to the development of personnel expenses. These rose by € o.7 million to a total of € 6.5 million.

Together with the fi nancial result, MLP achieved earnings before tax (EBT) in this segment amounting to € –o.4 million (€ –o.2 million) .

Total revenue and EBIT for the Feri segment (in € million)

Holding Segment

Total revenue in the Holding segment fell from € 3.3 million to € 3.o million in the fi rst quarter 2o11. Earnings before interest and tax (EBIT) amounted to € –2.5 million (€ –1.o million). In addition to lower total revenue, this decline was also particularly due to the rise in personnel expenses from € 1.3 million to € 2.9 million. This fi gure also includes one-off exceptional costs within the framework of our previously announced investment and effi ciency programme. The fi nancial result in this segment improved from € o.7 million to € 1.6 million. Overall, MLP achieved earnings before tax (EBT) in the Holding segment amounting to € –o.9 million (€ –o.3 million).

RISK REPORT

There were no signifi cant changes in the risk situation of the MLP Group during the period under review. Even in the aftermath of the fi nancial and economic crisis there were no exceptional burdens within the framework of our counterparty default risks, market price risks, liquidity risks, and operational or other risks. The MLP Group has adequate liquid funds. At the reporting date on March 31, 2o11, our core capital ratio amounted to 23.o % and continued to far exceed the 8 % level prescribed by the supervisory body. At the present time, no existence threatening risks to the MLP Group have been identifi ed.

A detailed presentation of our corporate risks as well as a detailed description of our risk management are contained in our risk and disclosure report on pages 85 to 1o4 of the Annual Report 2o1o.

RELATED PARTY DISCLOSURES

Related party disclosures are contained in the notes of the Annual Report 2o1o, page 228 et seq.

OUTLOOK FOR THE CURRENT FINANCIAL YEAR/FORECAST

Future macroeconomic development

During the fi rst quarter, expectations concerning the future macroeconomic development in Germany – where MLP generates almost 1oo % of its revenue – improved further. Whereas at the end of 2o1o, leading economic experts were still forecasting that the German economy would grow by 2.2 % in the current year, the experts then revised their fi gures after the end of the fi rst quarter and now expect the economy to expand by 2.6 %. The growth forecasts for 2012 remain unchanged at 2.o %.

The labour market in particular is expected to benefi t from the positive economic development. According to the spring forecast issued by the federal government, the average unemployment fi gure is likely to fall to 2.9 million this year and decrease further to 2.7 million in 2o12. This development also has an infl uence on the disposable income of private households which is expected to rise by 3.3 % during the current year.

Overall, and from a current perspective, the macroeconomic framework conditions remain favourable for MLP. Risk factors for the forecast positive development continue to be the rising infl ation, the political instability in North Africa and, above all, the EU debt crisis.

Future situation within the industry and competition

A description of the framework conditions for our most important markets – old-age provision, health insurance and wealth management – is contained in our Annual Report 2o1o on page 1o4 et seq. During the fi rst three months of the fi nancial year 2o11 there were no signifi cant changes to the overall situation.

Based on the demographic development in Germany, we continue to expect high need for private old-age provision and occupational pensions. Sooner or later this situation should lead to rising demand for old-age provision products.

The demand for full private health insurance or supplementary health insurance will rise. On January 1, 2o11 premiums for statutory health insurance increased. At the same time, the waiting period for insurees wishing to switch to private health insurance was cut from three years to one year. We expect this situation to have a positive effect on our business in 2o11 and 2o12.

The wealth management market also offers growth potential. We intend to further increase our Assets under Management – both in our private client business as well as for institutional investors.

The ongoing regulation has become a determining factor for competition within the market for the distribution of fi nancial services. This will intensify competition and thereby accelerate the consolidation in the market. Through our quality approach, client orientation and clear commitment to transparency we stand to benefi t from this development.

Anticipated business development

At the start of April MLP initiated extensive investments. At the same time we are accelerating our ongoing effi ciency programme and pulling forward measures, which were originally planned for implementation by the end of 2o13, into the current fi nancial year. The measures will focus on strengthening the MLP brand through an extensive marketing campaign, signifi cant improvement of visibility at the branch locations, even more effective support for MLP consultants as well as further optimisation of processes.

The concentration of the effi ciency measures into the current fi nancial year will result in one-off exceptional costs of around € 3o million in 2o11. From 2o12, the programme will contribute towards a signifi cant increase in the previously planned effi ciency measures. Overall, and on this basis, MLP expects to achieve a sustainable reduction in annual fi xed costs of at least € 3o million by the end of 2o12.

Anticipated development of revenue 2011 to 2012

2011 2012
Revenue old-age provision
Revenue wealth management
Revenue health insurance
[Table 07]

Following completion of the fi rst quarter of 2o11 we see no reason to amend the qualitative revenue forecast provided in our Annual Report 2o1o. In wealth management and in health insurance we anticipate a continuation of the positive development from the fi nancial year 2o1o. We expect to achieve revenue growth, both in 2o11 as well as in 2o12. The provision of a forecast for the area of old-age provision is a far more diffi cult proposition and is subject to greater uncertainty. From a current perspective, we still expect to achieve stable revenue in this area for the current fi nancial year, followed by a slight increase in 2o12. We also maintain our medium-term objective which we formulated at the start of 2o1o – to achieve an operating EBIT margin of 15 % in 2o12.

Development of the operating EBIT margin 2007–2012 (in %)

Opportunities

Signifi cant changes to the opportunities resulting from the framework conditions, corporatestrategic opportunities or business opportunities did not occur during the period under review. Relevant detailed explanations are contained in the Annual Report 2o1o on page 114 et seq .

EVENTS SUBSEQUENT TO THE REPORTING DATE

In April 2o11, MLP AG acquired the remaining 43.4 % share holding in Feri Finance AG as planned. The purchase price of the shares which were held solely by the Feri managing partners provisionally amounts to € 5o.6 million. MLP had already acquired a 56.6 % holding in Feri in autumn 2oo6.

At the start of April MLP initiated extensive investments. At the same time MLP is accelerating its ongoing effi ciency programme and pulling forward measures, which were originally planned for implementation by the end of 2o13, into the current fi nancial year. The measures will focus on strengthening the MLP brand through an extensive marketing campaign, signifi cant improvement of our visibility at the branch locations, even more effective support for MLP consultants as well as further optimisation of processes. Relevant details are contained in the section "Outlook for the current fi nancial year/Forecast".

Investor Relations

Development in the stock markets

The development in the stock markets during the fi rst quarter of the current fi nancial year was infl uenced by the tsunami disaster and reactor accident in Japan, the political events in North Africa, rising commodity prices and the EU debt crisis. In general, the markets stagnated but the US American markets managed to push ahead. In the period under review the Dow Jones index climbed by 6.4 % to 12,32o points. The DAX rose slightly and closed 1.8 % higher at 7,o41 points at the end of the quarter. The small cap index SDAX hardly changed at all. At the close of trading on March 31, 2o11, the index stood at 5,144 points, corresponding to a slight fall of o.6 % compared to the end of 2o1o. The DAX sector Financial Services index – the index for fi nancial services companies in Germany – rose by 1.1 % compared to the end of 2o1o.

MLP share, SDAX and DAXsector Financial Services in Q1 2011

The MLP share

At the end of the period under review the MLP share stood at € 6.53, corresponding to a fall of 14.1 % compared to the end of 2o1o. During the period under review, the MLP share price fl uctuated between a high of € 7.85 at the beginning of February and a low of € 6.47 during the middle of March.

Further information concerning the MLP share is available from our Investor Relations page on the MLP website at www.mlp-ag.com under the heading "MLP share".

Key fi gures of the MLP share

1st quarter 2011 1st quarter 2010
Share price at the beginning of the quarter € 7.64 € 8.27
Share price high € 7.85 € 8.27
Share price low € 6.47 € 6.69
Share price at the end of the quarter € 6.53 € 7.80
Dividend for the previous year € 0.30* € 0.25
Market capitalisation (end of reporting period) € 704,441,629.14 € 841,446,356.40

* Subject to the approval of the Annual General Meeting on June 10, 2011. [Table 08]

Increased dividend

In the fi nancial year 2o1o we signifi cantly improved the earnings situation of the company. This performance also enables us to increase the dividend payment to our shareholders. The Executive and Supervisory Boards are therefore proposing an increase in the dividend from € o.25 to € o.3o per share for approval by shareholders at the Annual General Meeting on June 1o, 2o11 - representing a dividend distribution of € 32.4 million to our shareholders. This is also in line with the dividend policy we have adopted during the past two years of distributing almost 1oo % of Group net profi t. As in previous years, shareholders can receive the dividend tax-free.

Annual General Meeting (AGM) 2011

The next Annual General Meeting of MLP AG will take place on June 1o, 2o11 at the Congress Center Rosengarten in Mannheim, Germany. Further information about the MLP Annual General Meeting 2o11 is available from our Investor Relations page on the Internet at www.mlp-ag.com.

Income statement and statement of comprehensive income

Income statement for the period from January 1 to March 31, 2011

All fi gures in €'000 Notes 1st quarter 2011 1st quarter 2010
Revenue (5) 125,526 115,289
Other revenue 5,316 5,903
Total revenue 130,842 121,191
Commission expenses – 48,292 – 40,324
Interest expenses – 2,174 – 2,470
Personnel expenses (6) – 29,889 – 27,618
Depreciation and amortisation – 3,622 – 4,112
Other operating expenses (7) – 38,527 – 42,732
Earnings from shares accounted for using the equity method 234 103
Earnings before interest and tax (EBIT) 8,572 4,039
Other interest and similar income 1,248 1,663
Other interest and similar expenses – 2,245 – 2,163
Finance cost (8) – 997 – 499
Earnings before tax (EBT) 7,576 3,540
Income taxes – 2,947 – 1,550
Earnings from continuing operations after tax 4,628 1,990
Earnings from discontinued operations after tax 22 – 287
Net profi t 4,651 1,703
Of which attributable to
owners of the parent company 4,651 1,703
Earnings per share in €*
From continuing operations
basic 0.04 0.02
diluted** 0.04 0.02
From continuing and discontinued operations
basic 0.04 0.02
diluted** 0.04 0.02
*
Basis of calculation: Average number of shares at March 31, 2011: 107,877,738, Potential shares (convertible debentures): 450,207.
[Table 09]

** The ordinary shares resulting from the conversion of convertible debentures are treated as shares already issued.

Statement of comprehensive income for the period from January 1 to March 31, 2011

All fi gures in €'000 1st quarter 2011 1st quarter 2010
Net profi t 4,651 1,703
Other comprehensive income
Securities marked to market – 606 1.703
Tax expense 91 – 12
Other comprehensive income after tax – 515 1,691
Total comprehensive income for the year 4,135 3,394
Total comprehensive income attributable to
owners of the parent company 4,135 3,394

Consolidated statement of fi nancial position

Assets as at March 31, 2011

All fi gures in €'000 Notes March 31, 2011 March 31, 2010
Intangible assets 146,360 148,157
Property, plant and equipment 73,230 74,403
Investment property 11,112 11,178
Shares accounted for using the equity method 3,144 2,910
Deferred tax assets 3,453 3,283
Receivables from clients in the banking business 341,074 343,453
Receivables from banks in the banking business (9) 468,972 485,023
Financial assets (10) 303,223 252,687
Tax refund claims 9,301 11,846
Other accounts receivable and other assets (11) 92,243 121,999
Cash and cash equivalents 46,345 50,470
Total 1,498,455 1,505,411
[Table 11]

Liabilities and shareholders' equity as at March 31, 2011

All fi gures in €'000 Notes March 31, 2011 March 31, 2010
Shareholders' equity (12) 432,614 428,390
Provisions 52,608 51,960
Deferred tax liabilities 10,681 10,551
Liabilities due to clients in the banking business 830,875 819,294
Liabilities due to banks in the banking business 14,938 16,391
Tax liabilities 2,032 1,109
Other liabilities (11) 154,708 177,716
Total 1,498,455 1,505,411

[Table 12]

Consolidated statement of cash fl ows

Condensed statement of cash fl ows for the period from January 1 to March 31, 2011

All fi gures in €'000 1st quarter 2011 1st quarter 2010
Cash fl ow from operating activities 48,932 43,299
Cash fl ow from investing activities 26,950 – 48,711
Cash fl ow from fi nancing activities – 3 – 2,172
Change in cash and cash equivalents 75 ,880 – 7 ,584
Cash and cash equivalents at the end of the period 201,345 116 ,040
Thereof discontinued operations
Cash fl ow from operating activities – 63 – 3,187
Cash fl ow from investing activities
Cash fl ow from fi nancing activities
Change in cash and cash equivalents – 63 – 3 ,187
Cash and cash equivalents at the end of the period 0 0

[Table 13]

Statement of changes in equity

Equity attributable to MLP AG shareholders
All fi gures in €'000 Share
capital
Capital
reserves
Securities
marked to
market
Other
equity
Total
shareholders'
equity
As at Jan 1, 2010 107,878 142,184 – 1,573 170,044 418,532
Transactions with owners
Total comprehensive income 1,691 1,703 3,394
As at March 31, 2010 107,878 142,184 118 171,747 421,926
As at Jan 1, 2011 107,878 142,184 1,193 177,136 428,390
Changes to the scope of consolidation 88 88
Transactions with owners 88 88
Total comprehensive income –515 4,651 4,135
As at March 31, 2011 107,878 142,184 677 181,875 432,614

[Table 14]

Notes to the consolidated fi nancial statements

Segment reporting

Financial services
All fi gures in €'000 1st quarter 2011 1st quarter 2010
Revenue 117,120 107,492
of which total inter-segment revenue 60 56
Other revenue 4,176 4,528
of which total inter-segment revenue 430 442
Total revenue 121,296 112,020
Commission expenses – 47,851 – 39,998
Interest expenses – 2,174 – 2,471
Personnel expenses – 20,563 – 20,537
Depreciation/amortisation and impairment – 2,363 – 2,759
Other operating expenses – 37,127 – 41,082
Earnings from shares accounted for using the equity method 234 103
Segment earnings before interest and tax (EBIT) 11,452 5,276
Other interest and similar income 58 97
Other interest and similar expenses – 380 – 415
Finance cost – 322 – 318
Earnings before tax (EBT) 11,130 4,958
Income taxes
Earnings from continuing operations after tax
Earnings from discontinued operations after tax 22 – 287
Net profi t (total)
Feri Holding Consolidation/Other Total
1st quarter 2011 1st quarter 2010 1st quarter 2011 1st quarter 2010 1st quarter 2011 1st quarter 2010 1st quarter 2011 1st quarter 2010
8,510 7,876 – 105 – 80 125,526 115,289
45 23 – 105 – 78 0 0
877 928 3,001 3,336 – 2,738 – 2,890 5,316 5,903
2,308 2,448 – 2,738 – 2,890 0 0
9,387 8,804 3,001 3,336 – 2,842 – 2,970 130,842 121,191
– 461 – 401 20 76 – 48,292 – 40,324
1 1 – 2,174 – 2,470
– 6,462 – 5,770 – 2,863 – 1,311 – 29,889 – 27,618
– 526 – 592 – 732 – 760 – 3,622 – 4,112
– 2,301 – 2,264 – 1,875 – 2,243 2,776 2,856 – 38,527 – 42,732
234 103
– 364 – 222 – 2,470 – 977 – 46 – 37 8,572 4,039
7 1 3,659 2,577 – 2,477 – 1,011 1,248 1,663
– 3 – 3 – 2,070 – 1,906 209 161 – 2,245 – 2,163
4 – 3 1,590 671 – 2,269 – 850 – 997 – 499
– 360 – 225 – 880 – 306 – 2,314 – 887 7,576 3,540
– 2,947 – 1,550
4,628 1,990
22 – 287
4,651 1,703
[Table 15]

1 Information about the company

The consolidated fi nancial statements were prepared by MLP AG, Wiesloch, Germany, the ultimate parent company of the MLP Group. MLP AG is listed in the Mannheim Commercial Register under the number HRB 332697 at the address Alte Heerstraße 4o, 69168 Wiesloch, Germany.

Since it was founded in 1971, MLP has been operating as a broker and adviser for academics and other discerning clients in the fi elds of old-age provision including occupational pension provision, health care, fi nancing, wealth management and banking services.

2 Principles governing the preparation of the fi nancial statements

The interim fi nancial report has been prepared in line with the regulations set out in IAS 34 "Interim fi nancial reporting". It is based on the International Financial Reporting Standards (IFRS) of the International Accounting Standards Board (IASB) as well as the interpretations of the International Financial Reporting Interpretation Committee (IFRIC), as applicable within the European Union (EU). In accordance with the provisions of IAS 34, the scope of the report has been reduced compared to the consolidated fi nancial statements at December 31, 2o1o .

The same consolidation principles and accounting policies as for the consolidated fi nancial statements of the fi nancial year 2o1o have been applied to this interim fi nancial report. These are presented in the Group notes of the annual report 2o1o that can be downloaded from the company's website (www.mlp-ag.com).

The interim fi nancial report has been drawn up in euros (€), which is the functional currency of the parent company. Unless otherwise specifi ed, all amounts are stated in thousands of euros (€'ooo). Both single and cumulative fi gures are values with the smallest rounding difference. As a result, differences to reported total amounts may arise when the individual values shown are added up.

3 Adjustments to the accounting policies

The accounting policies applied are the same as those used in the fi nancial statements at December 31, 2o1o except the standards and interpretations to be used for the fi rst time in the fi nancial year 2o11.

In the fi nancial year 2o11 the following new or revised standards are to be used for the fi rst time:

Improvement to IFRSs 2o1o.

MLP does not expect any effects on the net assets, fi nancial position or profi t situation from the improvements to IFRS 2o1o (adopted by the EU in February 2o11), but there may be more detailed information requirements.

4 Seasonal infl uences on the business operations

Business development in the health insurance area was positively infl uenced by the healthcare reform that came into effect on January 1, 2o11. In old-age provision, clients remain hesitant with respect to the conclusion of longer-term old-age provision contracts.

5 Revenue

All fi gures in €'000 1st quarter 2011 1st quarter 2010
Old-age provision 50,508 58,860
Health insurance 28,044 12,859
Wealth management 19,349 18,324
Non-life insurance 16,811 16,396
Loans and mortgages 3,127 2,120
Other commission and fees 775 570
Comission and fees 118,613 109,129
Interest income 6,912 6,159
Total 125,526 115,289
[Table 16]

6 Personnel expenses/Number of employees

Personnel expenses increased from € 27,618 thsd to € 29,889 thsd. This was mainly due to restructuring costs.

At March 31, 2o11, the MLP Group had the following numbers of employees in the strategic fi elds of business:

All fi gures in €'000 March 31, 2011 of which
part-time
employees
March 31, 2010 of which
part-time
employees
Financial services 1,367 122 1,435 155
Feri 247 57 257 68
Holding 12 1 14 1
Total 1,626 180 1,706 224

[Table 17]

7 Other operating expenses

All fi gures in €'000 1st quarter 2011 1st quarter 2010
IT operations 12,197 11,688
Rental and leasing 3,943 4,491
Administration operations 3,244 3,499
Consultancy 3,014 3,544
Representation and advertising 1,923 1,816
Training and further education 1,913 1,908
Write-downs and impairments of other accounts
receivable and other assets
1,695 1,796
External services – banking business 1,610 1,796
Travel expenses 1,251 903
Premiums and fees 1,240 1,624
Entertainment 1,149 1,085
Expenses for commercial agents 832 1,517
Insurance 745 731
Write-downs and impairments of other receivables
from clients in the banking business
524 1,299
Maintenance 523 380
Other personnel costs 307 298
Audit 232 347
Expenses from the disposal of assets 7 9
Sundry other operating expenses 2,178 4,002
Total 38,527 42,732

[Table 18]

The costs of IT operations are mainly attributable to IT services and computer centre services that have been outsourced to an external service provider. The expenses for administration operations contain costs relating to building operations, offi ce costs and communication costs. External services - banking business mainly contain securities settlement and transaction costs in connection with the MLP credit card. The consulting costs are made up of tax advice costs, legal advice costs as well as general and IT consulting costs. The costs recognised under representation and advertising are attributable to media presence and client information activities. Write-downs and impairments of other accounts receivable and other assets comprise allowances for receivables from commercial agents. The expense for commercial agents includes expenses for former consultants and the training allowance for new consultants. Sundry other operating expenses mainly consist of external services, car costs, donations and specialist literature.

8 Finance cost

All fi gures in €'000 1st quarter 2011 1st quarter 2010
Other interest and similar income 1,248 1,663
Interest and similar expenses from fi nancial instruments – 1,923 – 1,851
Accrued interest on pension provisions – 321 – 312
Other interest and similar expenses – 2,245 – 2,163
Finance cost – 997 – 499

[Table 19]

The fall in the fi nancial result is mainly due to higher dividend payments to the other managing partners of Feri Finance AG amounting to € 1,740 thsd (previous year: € 653 thsd) as well as to the non-recurrence of interest income that arose during the previous year in connection with an audit. On the other hand, there were lower expenses from interest rate swaps as well as the absence of interest expenses relating to interest on the acquisition price liabilities for Feri Finance AG

9 Receivables from banks in the banking business

The change in receivables from banks in the banking business, which fell from € 485,o23 thsd to € 468,972 thsd, is mainly attributable to the profi t transfer payment by MLP Finanzdienstleistungen AG to MLP AG for the fi nancial year 2o1o and to the new investment of monies.

10 Financial assets

All fi gures in €'000 March 31, 2011 March 31, 2010
Available for sale
Debt securities and holdings in investment funds 38,127 40,639
Investments 3,240 3,385
Held-to-maturity securities 96,576 83,379
Loans and receivables 165,280 125,284
Total 303,223 252,687

[Table 20]

The rise in fi nancial investments is primarily attributable to the investment of MLP AG's liquid funds in fi xed-term deposits as well as to the addition of fi xed income securities at MLP Finanzdienstleistungen AG. Impairments were made to securities acquired for the hedging of the participation programme.

11 Other accounts receivable and other assets/other liabilities

Due to the seasonally stronger year-end business, high receivables from insurance companies as well as high liabilities towards commercial agents at December 31, 2o1o had to be shown which were then balanced out in the fi rst quarter of 2o11. A lower amount of receivables and liabilities were built up in the fi rst quarter of 2o11.

12 Shareholders' equity

Share capital

The share capital of MLP AG is made up of 1o7,877,738 no-par-value shares (December 31, 2o1o: 1o7,877,738 no-par-value shares). In the fi rst quarter 2o11 no new no-par-value shares were issued through the exercising of rights of conversion .

Dividend

The Executive and Supervisory Board propose to the Annual General Meeting on June 1o, 2o11 a dividend of € 32,363 thsd (previous year: € 26,969 thsd) for the fi nancial year 2o1o. This corresponds to € o.3o per share (previous year: o.25 € per share) .

13 Notes on the consolidated statement of cash fl ows

The cash fl ow from operating activities results from cash fl ows that cannot be defi ned as investing or fi nancing activities. This is determined on the basis of the consolidated net profi t for the year from continuing operations, current earnings and profi t from the sale of discontinued operations. As part of the indirect determination of the cash fl ow, the changes in statement of fi nancial position items due to operating activities are adjusted by effects from changes to the scope of consolidation and currency translation. The changes in the respective statement of fi nancial position items can therefore only be partially aligned with the corresponding values in the published consolidated statement of fi nancial positions. Cash fl ow from operating activities has increased by € 5,633 thsd to € 48,932 thsd .

The cash fl ow from investing activities is mainly infl uenced by the investment of cash in fi xed term deposits as well as by matured term investments. In the period under review, fi xed-term deposits were not extended. In the comparative period it was invested in fi xed-term deposits with a term of >3 months.

Cash and cash equivalents with a term to maturity of not more than three months are recorded under cash and cash equivalents. Cash equivalents are short-term fi nancial investments which can be converted into cash at any time and which are only subject to minor value fl uctuation risks.

All fi gures in €'000 March 31, 2011 March 31, 2010
Cash and cash equivalents 46,345 46,198
Loans < 3 months 155,000 70,000
Liabilities to banks due on demand – 1
– 158
Cash and cash equivalents 201,345 116,040

[Tabelle 21]

The receivables from banks of MLP Finanzdienstleistungen AG are not included in cash and cash equivalents, as they are to be attributed to the operating activities of the banking business segment.

14 Notes on Group reporting by segment

There were no signifi cant changes compared to December 31, 2o1o.

15 Discontinued operations

Expenses and income from discontinued operations break down as follows.

Income statement of discontinued operations

All fi gures in €'000 1st quarter 2011 1st quarter 2010
Operating profi t
Earnings from the sale/disclosure of operations before tax 32 – 305
Income taxes – 9 18
Earnings from the sale of operations after tax 22 – 287
Earnings from discontinued operations after tax 22 – 287
Earnings per share in €
from discontinued operations
basic and diluted 0.00 0.00
[Table 22]

16 Other fi nancial commitments, contingent assets and liabilities and other liabilities

There were no signifi cant changes compared to December 31, 2o1o.

17 Related party disclosures

Ralf Schmid, Chief Operating Offi cer of the MLP Group as well as a member of the Executive Boards of MLP AG and MLP Finanzdienstleistungen AG, resigned from both boards on March 21, 2011. Reinhard Loose took up his duties as Chief Financial Offi cer on February 1, 2o11.

Beyond this there were no signifi cant changes compared to December 31, 2o1o.

18 Events subsequent to the reporting reference date

In April 2o11 MLP acquired the remaining 43.4 % shares in Feri Finance AG. The purchase price provisionally amounts to € 5o.6 million. Also in April 2o11, the ongoing effi ciency programme was accelerated and the effi ciency measures are being concentrated into the current fi nancial year (2o11). This is expected to lead to one-off exceptional costs in the fi nancial year 2011 of around € 3o million.

Beyond this there were no notable events after the balance sheet date which may affect the MLP Group's net assets, fi nancial position or results of operations.

Wiesloch, May 11, 2o11

MLP AG

Executive Board

Dr. Uwe Schroeder-Wildberg Manfred Bauer Reinhard Loose Muhyddin Suleiman

List of fi gures and tables

list of figures list of tables

Management report

05 Figure 01 German Gross Domestic Product, change
in % compared to the previous quarter
06 Figure 02 What effect do the fi nancial crisis and its possible
consequences have on the most important
saving targets of the German population?
07 Figure 03 Financial viability of the German healthcare system
08 Figure 04 Infl ows and outfl ows in various types of mutual
funds in Germany in Q1 2011
09 Figure 05 Total revenue from continuing operations
11 Figure 06 EBIT from continuing operations
17 Figure 07 Total revenue and EBIT for the fi nancial services
segment
18 Figure 08 Total revenue and EBIT for the Feri segment
19 Figure 09 Expected growth in GDP in Germany
21 Figure 10 Development of the operating EBIT margin
2007–2012

Investor Relations

22 Figure 11 MLP share, SDAX and DAXsector Financial Services in Q1 2011

Cover

02 Table 01 MLP Key fi gures

Management report

10 Table 02 Earnings development of continuing operations
12 Table 03 Assets as at March 31, 2011
13 Table 04 Liabilities and shareholders' equity as at
March 31, 2011
14 Table 05 Condensed statement of cash fl ows in continuing
operations
15 Table 06 Number of employees
20 Table 07 Anticipated development of revenue 2011 to 2012

Investor Relations

23 Table 08 Key fi gures of the MLP share

MLP Consolidated fi nancial statements

24 Table 09 Income statement for the period from
January 1 to March 31, 2011
24 Table 10 Statement of comprehensive income
for the period from January 1 to March 31, 2011
25 Table 11 Assets as at March 31, 2011
25 Table 12 Liabilities and shareholders' equity as at
March 31, 2011
26 Table 13 Consolidated statement of cash fl ows for the period
from January 1 to March 31, 2011
27 Table 14 Statement of changes in equity

Notes

28 Table 15 Segement reporting
31 Table 16 Revenue
31 Table 17 Personnel expenses/Number of employees
32 Table 18 Other operating expenses
33 Table 19 Finance cost
33 Table 20 Financial assets
35 Table 21 Notes on the consolidated statement of cash fl ows
36 Table 22 Income statement of discontinued operations

Executive bodies at MLP AG

Vorstand

Dr. Uwe Schroeder-Wildberg (Chairman, appointed until December 31, 2o12)

Manfred Bauer (Product management and purchasing, appointed until April 3o, 2o15)

Reinhard Loose (Chief Financial Offi cer, since February 1, 2o11, appointed until Januar 31, 2o14)

Ralf Schmid (Chief Operating Offi cer, until March 31, 2o11)

Muhyddin Suleiman (Sales, appointed until September 3, 2o11)

Aufsichtsrat Dr. Peter Lütke-Bornefeld (Chairman, elected until 2o13)

Dr. h. c. Manfred Lautenschläger (Vice chairman, elected until 2o13)

Dr. Claus-Michael Dill (elected until 2o13)

Johannes Maret (elected until 2o13)

Maria Bähr (Employee representative, elected until 2o13)

Norbert Kohler (Employee representative, elected until 2o13)

Contact

Investor Relations

Telephone +49 (o) 6222 • 3o8 • 832o Fax +49 (o) 6222 • 3o8 • 1131 E-Mail [email protected]

Public Relations

Telephone +49 (o) 6222 • 3o8 • 831o Fax +49 (o) 6222 • 3o8 • 1131 E-Mail [email protected]

Financial Calendar 2011

NOVEMBER

November 1o, 2o11

Publication of the fi nancial results for the fi rst nine months of the year and for the third quarter. MLP publishes the Interim Report for the fi rst nine months and the third

quarter.

November 23-24, 2o11

Roadshow in Frankfurt and London. MLP presents its business activities, strategy and the long-term outlook for the company to investors.

AUGUST

August 11, 2o11

Publication of the fi nancial results for the fi rst half of the year and for the second quarter. MLP publishes the Interim Report for the fi rst half of the year and for the second quarter.

August 17-18, 2o11

Roadshow in Frankfurt and London. MLP presents its business activities, strategy and the long-term outlook for the company to investors.

JUNE

June 1o, 2o11 Annual General Meeting of MLP AG in Mannheim, Germany. MLP AG convenes for the Annual General Meeting at the Rosengarten Mannheim, Germany.

MAY

May 12, 2o11 Publication of the fi nancial results for the fi rst quarter. MLP publishes the Interim Report for the fi rst quarter.

More information at: www.mlp-ag.com/investor-relations

prognosis

This documentation includes certain prognoses and information on future developments founded on the conviction of MLP AG's Executive Board and on assumptions and information currently available to MLP AG. Words such as "expect," "anticipate," "estimate," "assume," "intend," "plan," "should," "could," "project" and other similar terms used in reference to the company describe prognoses based on certain factors subject to uncertainty.

Many factors can contribute to the actual results of the MLP Group differing signifi cantly from the prognoses made in such statements.

MLP AG accepts no liability to the public for updating or correcting prognoses. All prognoses and predictions are subject to various risks and uncertainties, which can lead to the actual results differing from expectations. The prognosis refl ect the points of view at the time when they were made.

MLP AG Alte Heerstraße 40 69168 Wiesloch, Germany Tel +49 (0) 6222 • 308 • 0 Fax +49 (0) 6222 • 308 • 9000 www.mlp-ag.com

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